Vol. 140, No. 23 — November 15, 2006

Registration
SOR/2006-271 November 2, 2006

ENERGY EFFICIENCY ACT

Regulations Amending the Energy Efficiency Regulations

P.C. 2006-1275 November 2, 2006

Whereas, pursuant to section 26 of the Energy Efficiency Act (see footnote a), a copy of the proposed Regulations Amending the Energy Efficiency Regulations, substantially in the form set out in the annexed regulations, was published in the Canada Gazette, Part I, on May 6, 2006, and a reasonable opportunity was given to interested persons to make representations to the Minister of Natural Resources with respect to the proposed regulations;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to sections 20 and 25 of the Energy Efficiency Act (see footnote b), hereby makes the annexed Regulations Amending the Energy Efficiency Regulations.

REGULATIONS AMENDING THE ENERGY EFFICIENCY REGULATIONS

AMENDMENTS

1. (1) The definitions "CSA C273.3", "CSA C656", "refrigerator or combination refrigerator-freezer", "10 CFR Appendix C", "10 CFR 430.23" and "wall-mounted" in subsection 2(1) of the Energy Efficiency Regulations (see footnote 1) are repealed.

(2) The definitions "CSA C300-00", "dishwasher", "dry-type transformer", "electric water heater", "fluorescent lamp ballast", "large air-conditioner", "large condensing unit", "large heat pump" and "sealed transformer" in subsection 2(1) of the Regulations are replaced by the following:

"CSA C300-00" means the CSA standard CAN/CSA-C300-00 entitled Energy Performance and Capacity of Household Refrigerators, Refrigerator-Freezers, and Freezers; (CSA C300-00)

"dishwasher" means an electrically operated automatic household dishwasher; (lave-vaisselle)

"dry-type transformer" means a transformer, including one that is incorporated into any other product, in which the core and windings are in a gaseous or dry compound insulating medium and that

(a) is either single-phase with a nominal power of 15 to 833 kVA or three-phase with a nominal power of 15 to 7 500 kVA,

(b) has a nominal frequency of 60 Hz, and

(c) has a high voltage winding of 35 kV or less,

but does not include

(d) an autotransformer,

(e) a drive (isolation) transformer with two or more output windings or a nominal low-voltage line current greater than 1 500 A,

(f) an instrument transformer,

(g) a rectifier transformer,

(h) a sealed transformer,

(i) a non-ventilated transformer,

(j) a testing transformer,

(k) a furnace transformer,

(l) a welding transformer,

(m) an encapsulated transformer, or

(n) a transformer with a nominal low-voltage line current of 4 000 A or more; (transformateur à sec)

"electric water heater" means a stationary electric storage tank water heater with a capacity of not less than 50 L (11 imperial gallons) and not more than 454 L (100 imperial gallons) that is intended for use on a pressure system; (chauffe-eau électrique)

"fluorescent lamp ballast" means a device that is

(a) used to start and operate fluorescent lamps by

(b) designed for input of 120, 227 or 347 volts, and

(c) designed to operate with an F32T8, F34T12, F40T10 or F40T12 rapid start fluorescent lamp or an F96T12ES, F96T12IS, F96T12HO or F96T12HO ES fluorescent lamp,

but does not include

(d) a ballast that is designed to be used in an outdoor sign and that is capable of operating with an F96T12HO fluorescent lamp in ambient temperatures at or below -28.9°C, or

(e) a ballast that, by means of an integrated dimming capability, can reduce the output of the fluorescent lamp by 50% or more; (ballast pour lampe fluorescente)

"large air-conditioner" means a commercial or industrial unitary air-conditioner with a cooling capacity of at least 19 kW (65 000 Btu/h) but no greater than 70 kW (240 000 Btu/h); (climatiseur de grande puissance)

"large condensing unit" means a commercial or industrial condensing unit intended for air-conditioning applications with a cooling capacity of at least 19 kW (65 000 Btu/h) but no greater than 70 kW (240 000 Btu/h); (groupe compresseur-condenseur de grande puissance)

"large heat pump" means a commercial or industrial unitary heat pump intended for air-conditioning and space-heating applications with a cooling capacity of at least 19 kW (65 000 Btu/h) but no greater than 70 kW (240 000 Btu/h); (thermopompe de grande puissance)

"sealed transformer" means a transformer that is designed to remain hermetically sealed in a gas under gauge pressures other than zero and under specified conditions of temperature; (transformateur hermétique)

(3) The definitions "climatiseur individuel", "climatiseur terminal autonome", "CSA C361", "CSA C802.2", "intégré", "laveuse", "laveuse-sécheuse", "non encastré", "ordinaire" and "thermopompe terminale autonome" in subsection 2(1) of the French version of the Regulations are replaced by the following:

« climatiseur individuel » Climatiseur individuel à alimentation électrique monophasée, à l'exception de tout climatiseur terminal autonome, dont la capacité de refroidissement n'excède pas 10,55 kW (36 000 Btu/h). (room air-conditioner)

« climatiseur terminal autonome » Climatiseur terminal autonome assemblé en usine qui, selon le cas :

a) est constitué d'un manchon mural et d'un dispositif de refroidissement distinct non contenu dans un boîtier et est destiné à refroidir une seule pièce ou zone;

b) est constitué d'un manchon mural et d'une combinaison distincte de dispositifs de chauffage et de refroidissement non contenus dans un boîtier et est destiné à chauffer et à refroidir une seule pièce ou zone. (packaged terminal air-conditioner)

« CSA C361 » La norme CAN/CSA-C361-92 de la CSA intitulée Détermination de la capacité du tambour et méthodes d'essai de la consommation d'énergie des sécheuses électrodomestiques à séchage par culbutage. (CSA C361)

« CSA C802.2 » La norme CAN/CSA-C802.2-00 de la CSA intitulée Valeurs minimales de rendement pour les transformateurs à sec. (CSA C802.2)

« intégré » Se dit de ce qui est soutenu par un plan de travail horizontal. (counter-mounted)

« laveuse » Laveuse à linge domestique alimentée à l'électricité, de modèle ordinaire ou compact, à chargement vertical ou frontal, comportant un système interne de commande qui règle la température de l'eau sans que l'utilisateur ait à intervenir après la mise en marche de l'appareil. (clothes washer)

« laveuse-sécheuse » Appareil domestique qui consiste en une laveuse et une sécheuse superposées ou côte à côte, alimentées par une seule source d'alimentation, et dont le panneau de commande est monté sur l'une des deux. Les laveuses-sécheuses combinées sont également visées par la présente définition. (integrated clothes washer-dryer)

« non encastré » Se dit de ce qui n'est pas soutenu par de la menuiserie, par un ou plusieurs murs ou par d'autres constructions semblables. (freestanding)

« ordinaire » S'entend, s'il s'agit de la catégorie de grosseur :

a) dans le cas des sécheuses, de celles dont le tambour a une capacité d'au moins 125 L (4,4 pieds cubes);

b) dans le cas des laveuses, de celles dont la cuve a une capacité d'au moins 45 L (1,6 pied cube);

c) dans le cas des lave-vaisselle, de ceux ayant une capacité d'au moins huit couverts plus six pièces de service, au sens de la norme ANSI/AHAM DW-1;

d) dans le cas des laveuses-sécheuses, autres que des laveuses-sécheuses combinées, de celles dont le tambour de la sécheuse a une capacité d'au moins 125 L (4,4 pieds cubes) et dont la cuve de la laveuse a une capacité d'au moins 45 L (1,6 pied cube);

e) dans le cas des laveuses-sécheuses combinées, de celles dont le tambour a une capacité d'au moins 45 L (1,6 pied cube). (standard)

« thermopompe terminale autonome » Thermopompe terminale autonome assemblée en usine, qui est constituée d'un système frigorifique distinct non contenu dans un boîtier et qui fait appel à un cycle de réfrigération inversé comme source de chaleur primaire. (packaged terminal heat pump)

(4) Paragraphs (a) and (b) of the definition "annual energy consumption" in subsection 2(1) of the Regulations are replaced by the following:

(a) dishwashers, the estimated annual energy use as calculated in accordance with CSA C373-04,

(b) clothes washers, the value as calculated in CSA C360-03,

(5) Subparagraph (d)(ii) of the definition "type" in subsection 2(1) of the Regulations is replaced by the following:

(6) Subparagraph (e)(ii) of the definition "type" in subsection 2(1) of the Regulations is replaced by the following:

(7) The definition "V" in subsection 2(1) of the Regulations is amended by striking out the word "and" at the end of paragraph (f), by adding the word "and" at the end of paragraph (g) and by adding the following after paragraph (g):

(h) self-contained commercial refrigerators and self-contained commercial freezers, the volume of the refrigerator compartment or freezer compartment, as the case may be, in litres as calculated in accordance with sections 4 and 5 of the AHAM standard ANSI/AHAM HRF-1-2004 entitled Energy Performance and Capacity of Household Refrigerators, Refrigerator-Freezers and Freezers; (V)

(8) The portion of the definition "cuisinière électrique" in subsection 2(1) of the French version of the Regulations before paragraph (a) is replaced by the following:

« cuisinière électrique » Cuisinière domestique alimentée à l'électricité, de l'un des types suivants :

(9) Paragraph (b) of the definition "encastré" in subsection 2(1) of the French version of the Regulations is replaced by the following:

b) dans le cas d'une cuisinière électrique ou à gaz, de celle qui est soutenue par de la menuiserie, par un ou plusieurs murs ou par d'autres constructions semblables. (built-in)

(10) Paragraph (a) of the definition "lampe-réflecteur à incandescence standard" in subsection 2(1) of the French version of the Regulations is replaced by the following:

a) la forme d'une ampoule de type R ou PAR ou d'une ampoule semblable qui n'est pas de type ER ou BR, selon la description prévue à la norme ANSI C79.1;

(11) The portion of the definition "laveuse-sécheuse combinée" in subsection 2(1) of the French version of the Regulations before paragraph (a) is replaced by the following:

« laveuse-sécheuse combinée » Appareil domestique doté :

(12) Subsection 2(1) of the Regulations is amended by adding the following in alphabetical order:

"ASHRAE" means the American Society of Heating, Refrigerating and Air Conditioning Engineers, Inc.; (ASHRAE)

"ASHRAE 32.1" means the ASHRAE standard 32.1-2004 entitled Methods of Testing for Rating Vending Machines for Bottled, Canned, and Other Sealed Beverages; (ASHRAE 32.1)

"ASHRAE 72" means the ANSI/ASHRAE standard 72-1998 entitled Method of Testing Open Refrigerators; (ASHRAE 72)

"ASHRAE 117" means the ANSI/ASHRAE standard 117-1992 entitled Method of Testing Closed Refrigerators; (ASHRAE 117)

"AV" means, with respect to self-contained commercial refrigerator-freezers, the adjusted volume of the product in litres calculated as follows:

AV = the refrigerator volume in litres + 1.63 × the freezer volume in litres; (VC)

"compressor-cycled automatic defrost system" means a defrost system in which the defrosting action for refrigerated surfaces occurs using the natural warming of the evaporator when the compressor is cycled on and that is initiated and terminated automatically; (dispositif de dégivrage automatique à cycle du compresseur)

"CSA C191-04" means the CSA standard CAN/CSA C191-04 entitled Performance of Electric Storage Tank Water Heaters for Domestic Hot Water Service; (CSA C191-04)

"CSA C373-04" means the CSA standard CAN/CSA C373-04 entitled Energy Consumption Test Methods and Limits for Household Dishwashers; (CSA C373-04)

"CSA C656-05" means the CSA standard CSA C656-05 entitled Performance Standard for Split-System and Single-Package Central Air Conditioners and Heat Pumps; (CSA C656-05)

"CSA C744-04" means the joint CSA and Air-Conditioning and Refrigeration Institute standard ARI 310/380-2004/CAN/CSA C744-04 entitled Standard for Packaged Terminal Air Conditioners and Heat Pumps; (CSA C744-04)

"CSA C13256-1" means the CSA standard CAN/CSA-C13256-1-01 entitled Water-Source Heat Pumps — Testing and Rating for Performance — Part 1: Water-to-Air and Brine-to-Air Heat Pumps; (CSA C13256-1)

"E_daily" means, with respect to a product referred to in any of paragraphs 3(1)(y) to (z.3), the daily energy consumption of the product expressed in kilowatt hours per day; (E_quot)

"encapsulated transformer" means a transformer that is designed to have its core and windings encapsulated in a solid medium; (transformateur encapsulé)

"furnace transformer" means a three-phase step-down transformer that is designed to be connected to an electric-arc furnace and that is equipped with a delta-wye switching arrangement and high voltage taps that change the level of low voltage supplied to the furnace; (transformateur de fourneau)

"low power mode" means, in respect of a beverage vending machine or a snack and refrigerated beverage vending machine, a mode — into which the machine automatically enters during a period of extended inactivity — that is capable of reducing the energy consumption of the machine by means of the following power states:

(a) a lighting power state in which the machine's lights are turned off,

(b) a refrigeration power state in which the average temperature of the refrigerated beverages is allowed to rise to 4.4°C, and

(c) a machine power state in which the lighting and refrigeration power states are both in operation; (mode de veille)

"non-ventilated transformer" means a transformer that is designed to prevent external air circulation through the windings when it operates at zero gauge pressure; (transformateur non ventilé)

"refrigerated beverage vending machine" means a self-contained system designed to accept consumer payments and dispense only bottled, canned or other sealed beverages; (distributeur automatique de boissons réfrigérées)

"refrigerated buffet table" means a commercial refrigerator that

(a) is designed to function as a table or counter for receiving and refrigerating food and from which persons can serve themselves, and

(b) uses a mechanical refrigeration system; (table de buffet réfrigérée)

"refrigerated preparation table" means a commercial refrigerator the top of which is a work surface on which food can be prepared, displayed and kept refrigerated at temperatures between 1°C and 5°C; (table de préparation réfrigérée)

"refrigerator" or "combination refrigerator-freezer" means a household refrigerator or a household combination refrigerator-freezer, as the case may be, that has a defrost system — including a compressor-cycled automatic defrost system — and a capacity of 1 100 L (39 cubic feet) or less, but does not include a household wine chiller or a refrigerator that uses an absorption refrigeration system; (réfrigérateur ou réfrigérateur-congélateur)

"replacement fluorescent lamp ballast" means a fluorescent lamp ballast that

(a) is specifically marketed for use as a replacement lamp ballast for an existing fluorescent luminaire installation,

(b) is marked with the words "FOR REPLACEMENT USE ONLY",

(c) has output leads that, when fully extended, are shorter than the length of the fluorescent lamp with which it is intended to operate, and

(d) is sold by a dealer in a package that contains not more than 10 ballasts; (ballast de remplacement pour lampe fluorescente)

"replacement unit" means, with respect to packaged terminal air-conditioners and packaged terminal heat pumps, units with wall sleeves less than 0.41 m (16 inches) high or less than 1.07 m (42 inches) wide; (unité de remplacement)

"self-contained commercial freezer" means a commercial freezer all the compartments of which are designed for the freezing and storage of food, beverages or ice and that has a self-contained refrigeration system that requires energy input, but does not include a walk-in commercial freezer; (congélateur commercial autonome)

"self-contained commercial refrigerator"

(a) means a commercial refrigerator that

(b) does not include

"self-contained commercial refrigerator-freezer" means a commercial refrigerator-freezer, other than a walk-in commercial refrigerator-freezer, that

(a) has two or more compartments, at least one of which is for the storage of food and beverages at temperatures above 0°C and at least one other of which is for the freezing and storage of food and beverages at temperatures below -13.3°C, and

(b) has a self-contained refrigeration system that requires energy input; (réfrigérateur-congélateur commercial autonome)

"small-duct and high-velocity" means, with respect to split-system central air-conditioners and split-system heat pumps, those having an indoor blower and coil combination that

(a) produces at least 300 pascals (1.2 inches of water) external static pressure when operated at an air volume rate of 104-165 L/s (220-350 cf/m) per rated ton of cooling, and

(b) uses room outlets that produce velocities greater than 5 m/s (1000 f/m) and that each have less than 39 cm² (six square inches) of area; (à grand débit et petits conduits)

"snack and refrigerated beverage vending machine" means a self-contained system that

(a) is designed to accept consumer payments and dispense packages of solid non-refrigerated food and bottled, canned or other sealed refrigerated beverages, and

(b) has a vendible capacity of no more than 100 of those beverages; (distributeur automatique de boissons réfrigérées et de collations)

"through-the-wall" means, with respect to single-package central air-conditioners and single-package heat pumps, those with cooling capacities less than or equal to 30 000 Btu/h and that are designed to be installed through an exterior wall; (mural)

"Type 5A combination refrigerator-freezer" means a combination refrigerator-freezer — the manufacturing process of which is completed on or after December 31, 2005 — that is capable of dispensing ice through the cabinet door and that is equipped with a bottom-mounted freezer and an automatic defrost system; (réfrigérateur-congélateur de type 5A)

"Type 10A chest freezer" means a chest freezer manufactured on or after December 31, 2003 that is accessible from the top and equipped with an automatic defrost system; (congélateur coffre de type 10A)

"vendible capacity" means, in respect of a refrigerated beverage vending machine or a snack and refrigerated beverage vending machine, the maximum quantity of product that is recommended by the manufacturer to be dispensed from one full loading of the machine; (capacité de vente)

2. (1) The portion of subsection 3(1) of the Regulations before paragraph (a) is replaced by the following:

3. (1) Subject to subsections (2) to (19), the following products are prescribed as energy-using products:

(2) Subsection 3(1) of the Regulations is amended by striking out the word "and" at the end of paragraph (w) and by adding the following after paragraph (x):

(y) self-contained commercial freezers;

(z) self-contained commercial refrigerator-freezers;

(z.1) self-contained commercial refrigerators;

(z.2) refrigerated beverage vending machines; and

(z.3) snack and refrigerated beverage vending machines.

(3) Subsection 3(2) of the Regulations is replaced by the following:

(2) Subject to subsection (6), for the purposes of Parts II to V, a product referred to in any of paragraphs (1)(a), (b), (c) to (g), (h.1), (i), (j), (k), (l), (m), (n), (o) and (p) to (s) shall not be considered to be an energy-using product unless its manufacturing process is completed on or after February 3, 1995.

(4) Subsections 3(3) and (4) of the Regulations are repealed.

(5) Subsection 3(12) of the Regulations is replaced by the following:

(12) A product referred to in paragraph (1)(h.2) shall not be considered to be an energy-using product

(a) for the purposes of Part II; or

(b) for the purposes of Parts III to VI, unless its manufacturing process is completed on or after June 1, 2003.

(6) Subsection 3(14) of the Regulations is replaced by the following:

(14) For the purposes of Part IV, a product referred to in paragraph (1)(x) shall not be considered to be an energy-using product unless its manufacturing process is completed on or after November 1, 2004.

(15) A product referred to in paragraph (1)(y) shall not be considered to be an energy-using product

(a) for the purposes of Parts II and III, unless it has cabinet doors and its manufacturing process is completed on or after April 1, 2007; or

(b) for the purposes of Parts IV and V, unless its manufacturing process is completed on or after April 1, 2007.

(16) For the purposes of Parts II to V, a product referred to in paragraph (1)(z) shall not be considered to be an energy-using product unless its manufacturing process is completed on or after April 1, 2007.

(17) A product referred to in paragraph (1)(z.1) shall not be considered to be an energy-using product

(a) for the purposes of Parts II and III, unless it has cabinet doors or opaque cabinet drawers and its manufacturing process is completed on or after April 1, 2007; or

(b) for the purposes of Parts IV and V, unless its manufacturing process is completed on or after April 1, 2007.

(18) For the purposes of Parts II to V, a product referred to in paragraph (1)(z.2) shall not be considered to be an energy-using product unless its manufacturing process is completed on or after January 1, 2007.

(19) For the purposes of Parts II to V, a product referred to in paragraph (1)(z.3) shall not be considered to be an energy-using product unless its manufacturing process is completed on or after January 1, 2007.

3. (1) The portion of subsection 4(1) of the Regulations before paragraph (c) is replaced by the following:

4. (1) Subject to subsection (1.1),

(a) for an energy-using product referred to in any of paragraphs 3(1)(a) to (h.1), (i), (j), (j.3) to (m.3), (n.1) to (s), (v), (w) and (y) to (z.3), an energy efficiency standard set out in column III of an item of Part 1 of Schedule I applies to the product set out in column I of that item if the manufacturing process of the product is completed during the period set out in column IV of that item;

(b) for an energy-using product referred to in any of paragraphs 3(1)(j.1), (j.2), (t), (u) and (x), an energy efficiency standard set out in column III of an item of Part 1 of Schedule I applies to the product set out in column I of that item; and

(2) Subsection 4(1.1) of the Regulations is replaced by the following:

(1.1) During the period beginning on April 1, 2005 and ending on March 31, 2010, if an energy-using product referred to in paragraph 3(1)(f) is a replacement fluorescent lamp ballast, and its manufacturing process is completed during that period, the energy efficiency standard applicable to the product is the following:

Power factor = 90% and CSA C654, clause 4.1, fourth column.

(3) Subsection 4(4) of the Regulations is replaced by the following:

(4) A reference to a CSA standard set out in column III of Part 1 of Schedule I shall be read as a reference to that standard as it read on December 31, 2005.

4. The Regulations are amended by adding the following after section 4:

4.1 In respect of an energy-using product referred to in any of paragraphs 3(1)(y) to (z.1), compliance with the energy efficiency standard referred to in subsection 4(1) shall be determined in accordance with the testing procedures established by ASHRAE 117 that are applicable to the product as defined in these Regulations, except that

(a) the liquid used in the test packages may be either a solution of salt and water (H₂O and 6% ± 0.5% NaCl by mass) or a mixture that, by volume, is equal parts propylene glycol and distilled water;

(b) if the product features a roll-through or pass-through cabinet, the testing shall be conducted with the rear doors of the cabinet in the closed position; and

(c) testing to determine the E_daily shall be conducted

4.2 In respect of an energy-using product referred to in paragraph 3(1)(z.2), compliance with the energy efficiency standard referred to in subsection 4(1) shall be determined in accordance with the testing procedures established by sections 1 to 7.2 of ASHRAE 32.1 that are applicable to the product as defined in these Regulations, except that testing to determine the E_daily shall be conducted under the following temperature and humidity conditions:

(a) in the case of a product that is designed to display and dispense more than 20 discrete types of beverages, at an ambient temperature of 23.9°C ± 1°C and a relative humidity of 45% ± 5%; and

(b) in any other case, at an ambient temperature of 32.2°C ± 1°C and a relative humidity of 65% ± 5%.

4.3 In respect of an energy-using product referred to in paragraph 3(1)(z.3), compliance with the energy efficiency standard referred to in subsection 4(1) shall be determined in accordance with the testing procedures established by sections 1 to 7.2 of ASHRAE 32.1 that are applicable to the product as defined in these Regulations, except that testing to determine the E_daily shall be conducted at an ambient temperature of 23.9°C ± 1°C and a relative humidity of 45% ± 5%.

5. The headings before section 5 of the Regulations are replaced by the following:

PART III

ENERGY EFFICIENCY LABELLING

6. The heading before section 6 of the Regulations is repealed.

7. Section 11 of the Regulations and the headings before it are replaced by the following:

PART IV

VERIFICATION MARK LABELLING

11. (1) The following definitions apply in this Part.

"certification body" means a body accredited by the Standards Council of Canada as an energy efficiency certification body in respect of any of the following classes of products or their equivalent:

(a) electrical or electronic products;

(b) fuel-burning equipment; or

(c) gas-fired appliances and equipment. (organisme de certification)

"verification mark" means, in respect of an energy-using product, a mark

(a) issued by a certification body to signify that the body has, by means of an energy performance verification program,

(b) issued by a province to signify that the product is in compliance with the province's energy efficiency standard for the product. (marque de vérification)

(2) Every energy-using product shipped or imported as described in subsection 4(1) of the Act shall be labelled with at least one of the following:

(a) a verification mark issued by a certification body that is accredited in respect of the class of products to which the product belongs; or

(b) a verification mark issued by a province whose provincial energy efficiency standard for the product is equivalent to or exceeds the energy efficiency standard for the product referred to in section 4 of these Regulations.

(3) The verification mark shall be affixed to a surface of the energy-using product such that the mark is readily visible. However, in the case of an energy-using product referred to in any of paragraphs 3(1)(j.1) to (j.4), the verification mark may be affixed to the exterior of the product's package.

8. Paragraph 12(2)(e) of the English version of the Regulations is replaced by the following:

(e) the name of the body or province whose verification mark will be affixed to the product in accordance with Part IV; and

9. Sections 16 and 16.1 of the Regulations are replaced by the following:

16. A dealer is exempt from the application of sections 4 and 5 of the Act with respect to the shipment or importation of an energy-using product that is to be incorporated into any other product that is to be exported from Canada.

10. Part 1 of Schedule I to the Regulations is replaced by the following:

PART 1

11. The portion of item 4.01 of Schedule IV to the Regulations in column II is replaced by the following:

12. The portion of item 4.1 of Schedule IV to the Regulations in column III is amended by striking out the word "and" at the end of paragraph (f), by adding the word "and" at the end of paragraph (g) and by adding the following after paragraph (g):

13. Paragraph 5(d) of Schedule IV to the Regulations is replaced by the following:

14. Items 5.1 and 5.2 of Schedule IV to the Regulations are replaced by the following:

15. The portion of item 6.1 of Schedule IV to the Regulations in column I is replaced by the following:

16. Paragraph 7(b) of Schedule IV to the Regulations is replaced by the following:

17. Items 7.1 and 7.2 of Schedule IV to the Regulations are replaced by the following:

18. Paragraph 11(b) of Schedule IV to the Regulations is replaced by the following:

19. Paragraph 12(b) of Schedule IV to the French version of the Regulations is replaced by the following:

20. Items 15.1 and 15.2 of Schedule IV to the Regulations are replaced by the following:

21. The portion of item 16 of Schedule IV to the Regulations in Column III is replaced by the following:

22. Item 16.1 of Schedule IV to the Regulations is replaced by the following:

23. Items 18 to 18.3 of Schedule IV to the Regulations are replaced by the following:

24. Items 20.1 and 20.2 of Schedule IV to the Regulations are replaced by the following:

25. Items 23 to 26 of Schedule IV to the Regulations are replaced by the following:

26. Schedule IV to the Regulations is amended by adding the following after item 27:

27. The French version of the Regulations is amended by replacing the word "mural" with the words "fixé au mur" in the following provisions:

(a) paragraph (d) of the definition "cuisinière électrique" in subsection 2(1);

(b) paragraph 6(d) of Schedule IV;

(c) paragraph 6.1(d) of Schedule IV; and

(d) paragraph 6.2(g) of Schedule IV.

28. The French version of the Regulations is amended by replacing the word "murales" with the words "fixées au mur" in the following provisions:

(a) the portion of item 6 of Schedule IV in column I; and

(b) the portion of item 6.2 of Schedule IV in column I.

COMING INTO FORCE

29. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

Pursuant to the Energy Efficiency Act, the Energy Efficiency Regulations are designed to encourage the efficient use of energy on an economic basis and contribute to the competitiveness of Canada's economy. The Regulations also help Canada reduce harmful atmospheric emissions associated with the use of energy.

Concentrations of greenhouse gases (GHGs) are increasing in the earth's atmosphere. The accumulation of these gases cause a rise in the average temperature of the lower atmosphere. Although uncertainty remains as to the extent, timing and effects of global warming, evidence collected to date and the potential environmental threat support the implementation of precautionary measures. Therefore, the Government of Canada is committed to reducing Canada's GHG emissions and other types of harmful emissions to the atmosphere.

Carbon dioxide (CO₂), a by-product of fossil fuel consumption, has been identified as the most significant GHG. Due to greater demand for fossil fuel because of expanding human activities involving energy use, emissions of CO₂ have increased. Because there is limited short-term prospect for switching from fossil fuels to alternative energy sources, the main approach to limiting CO₂ emissions resulting from fossil fuel consumption is to improve energy efficiency.

These Regulations Amending the Energy Efficiency Regulations (the "amendment")

• address recommendations raised by the Standing Joint Committee for the Scrutiny of Regulations;
• update section 11, Verification Mark of the Regulations;
• introduce minimum energy performance standards and associated regulatory requirements for beverage vending machines and commercial reach-in refrigeration;
• increase the stringency of existing minimum performance requirements for three types of air conditioners used in the commercial/institutional sector. Packaged terminal air conditioners and heat pumps are heating and cooling assemblies mounted through the wall and are often found in motel and hotel rooms. Large air conditioners and heat pumps and internal water loop heat pumps are used for heating and cooling of large commercial buildings;
• update the test method and increase the stringency of energy performance requirements for central air-conditioners and heat pumps less than 19 kW (65 000 Btu/h). There are about 250 000 central air conditioners and heat pumps of this size sold in Canada per year;
• introduce requirements for two new types of appliances: chest freezers with automatic defrost, Type 10A and automatic defrost refrigerator-freezer, with bottom mounted freezer and through-the-door-ice service, Type 5A. The amendment also modifies the definition of automatic defrost system to include the normal compressor cycle as automatic defrost. The amendment will ensure that minimum standard requirements and labelling are harmonized in Canada and the U.S. for these products;
• repeal the effective date for internally-lighted exit signs. This change will broaden the coverage of the requirement to include all exit signs regardless of the date of manufacture;
• repeal the effective date for fluorescent lamp ballasts and introduce ballasts efficacy factors for energy saving lamps. It will also modify specific exclusion criteria for certain ballasts, such as ambient temperature of operation and dimming capabilities. The amendment will also allow for ballasts that operate a small subset of F32T8 lamps to operate at a lower power factor than specified in the current Regulations;
• eliminate the tap range exemptions for dry-type transformers;
• update references to the newly available French version of certain CSA standards, as well as update the reference for the dishwasher test method. The amendment will update the numbering system of items included in Part I of Schedule I of the Regulations.

Alternatives

Maintaining the status quo

If the amendment is not implemented, Canada will lose an opportunity to reduce its GHG emissions and other atmospheric emissions, such as smog pre-cursors associated with energy use.

If Canada were to have lower efficiency requirements compared to the United States, Canadian households and businesses would miss out on future savings in energy which are known to be cost effective.

Energy efficiency improvements are occurring at a rapid pace in Canada's trading partners. The standards contained in this amendment will help maintain and improve Canada's competitive position in supplying products to international and domestic markets.

Without the national standards contained in the amendment and complementary provincial requirements where authorized under provincial legislation, inefficient energy-using equipment could be dumped into provinces or territories that do not have performance requirements. This would hinder the federal government's objectives of reducing CO₂ emissions and achieving cost savings for energy users.

Voluntary program

Without the amendment, cooperation from all industry members could not be guaranteed, especially in the case of imported goods which come from a variety of foreign sources.

In order to manufacture product that meets the performance levels of the standards, firms will have to make substantial investments in their production facilities. Product markets are increasingly global in nature and profit margins are often claimed to be small. Consequently, firms generally support the use of standards in these cases so that there is a level playing field.

NRCan utilizes voluntary high efficiency programs such as ENERGY STAR^® to transform the market toward energy efficient equipment. As efficient products increase their market share, minimum energy performance standards can effectively eliminate the least efficient products.

Benefits and Costs

The benefits and costs of increasing the minimum energy performance standards for reach-in refrigeration, vending machines, large air conditioning equipment, water-source heat pumps and ground-source heat pumps, package terminal air conditioners and package terminal heat pumps, and residential air conditioners are evaluated in two parts:

• benefits and costs to society — a quantitative analysis measuring the economic attractiveness to society was conducted for the products specified in the amendment to the Regulations; and
• energy/GHG analysis — a description of the analysis of aggregate energy savings and associated reductions in GHG emissions, resulting from the amendment to the Regulations.

Benefits and costs to society

A quantitative analysis of the net benefits to society was undertaken to determine the economic attractiveness of improving the energy efficiency of reach-in refrigeration, vending machines, large air conditioning equipment, water-source heat pumps and ground-source heat pumps, packaged terminal air conditioners and packaged terminal heat pumps, and residential air conditioners. The analysis was conducted for units that would not meet the proposed minimum energy performance standard and that are considered to be the least efficient of their class.

Methodology and assumptions

The economic attractiveness of the minimum energy performance standards was analyzed within a cost-benefit analysis framework, using the incremental cost and energy savings data associated with the different technologies that increase the energy efficiency of the benchmark products. Benchmark products are often characterized as the least efficient products available for sale in Canada.

Using a cost-benefit analysis framework allows for the net present value of a stream of costs and benefits to be the indicator of economic attractiveness. The net present value is calculated by subtracting the present value of incremental costs from the present value of incremental benefits, over the useful life of the product. The incremental costs are differentials between a benchmark product price, and the cost of that product with levels of efficiency that meet or exceed those for federal regulation. The incremental benefits are the present value of energy savings associated with the efficiency improvement.

A negative net present value indicates the efficiency improvement is not economically attractive (costs exceed benefits), whereas a net present value greater than zero indicates the efficiency improvement is economically attractive (benefits exceed costs). A net present value equal to zero indicates that society would be indifferent.

Assumptions for base case analysis

The economic analysis involved a base case analysis and a sensitivity analysis. The key assumptions for the base case scenario include the following:

Analytical assumptions

• benefits and costs are measured in real 2000 dollars;
• a 7% real discount rate;
• canadian average energy prices, based on the National Energy Board (Canada's Energy Future 2003); and
• valuation of the GHG emissions where incorporated in the analysis at $15/ton.

Product-specific assumptions

Reach-in refrigeration

• reach-in refrigerators are assumed to have service life of 8.5 years;
• reach-in freezers and reach-in refrigerator/freezers have a useful life of 9 years;
• the 2007 baseline models used in the analysis were a two-door refrigerator solid door (48 cu. ft.) consuming 4 321 kWh per year, a one-door freezer solid door (24 cu. ft.) consuming 5 198 kWh per year and one-door beverage merchandiser (24 cu. ft.) consuming 3 923 kWh per year;
• the 2008 baseline models used in the analysis were a two-door refrigerator solid door (48 cu. ft.) consuming 3 649 kWh per year, a one-door freezer solid door (24 cu. ft.) consuming 4 367 kWh per year and one-door beverage merchandiser (24 cu. ft.) consuming 3 588 kWh per year;
• a cross-over effect of 37% was assumed for all reach-in appliances.

Vending machines

• vending machines are assumed to have service life of 10 years;
• the proposed standard in 2007 will have a technology standard (low power mode);
• the proposed standard in 2008 will have an energy consumption standard. Models will be tested on the energy consumption standard without the low power mode operating;
• the baseline used for the 2007 proposed technology standard was a Type A1 600-can capacity vending machine consuming 1 953 kWh per year for 2007 and 1 550 kWh per year for 2008 onwards;
• the baseline model used for the proposed energy standard in 2008 was a Type A1 600-can capacity vending machine consuming 1 953 kWh per year since models will be tested without the low power mode operating.

Large air conditioning equipment

• air-cooled unitary conditioners, water-cooled unitary air conditioners, air-cooled unitary heat pumps are assumed to have service life of 15 years;
• air-cooled condensing units are assumed to have a useful life of 20 years;
• the baseline models used in the analysis were

Air-cooled unitary air conditioners

with a capacity of 8.0 tons and an energy efficiency ratio (EER) of 8.9,
with a capacity of 15.0 tons and an EER of 8.5 for Table I and 9.0 for Table II;

Water-cooled unitary air conditioners

Air-cooled unitary heat pumps

Air-cooled condensing units

Water-source heat pumps and ground-source heat pumps

• Water-source heat pumps — water loop, ground-loop, ground-water — are assumed to have service life of 19 years;
• The baseline models used in the analysis were

Water loop heat pumps

with a capacity of 12 000 Btu/h and EER 10/COP 3.2 for Table I,
with a capacity of 12 000 Btu/h and EER 11/COP 3.9 for Table II,
with a capacity of 36 000 Btu/h and EER 10.4/COP 3.2 for Table I,
with a capacity of 36 000 Btu/h and EER 11/COP 3.9 for Table II,
with a capacity of 65 000 Btu/h and EER 10.8/COP 3.2 for Table I,
with a capacity of 65 000 Btu/h and EER 11.8/COP 3.9 for Table II;

with a capacity of 36 000 Btu/h and EER 10.8/COP 2.7 for Table I,
with a capacity of 36 000 Btu/h and EER 13.3/COP 3 for Table II; and

Packaged terminal air conditioners and packaged terminal heat pumps

• Packaged terminal air conditioners and packaged terminal heat pumps are assumed to have service life of 10 years.
• The baseline models used in the analysis were

Residential air conditioners (less than 65 000 Btu/h)

Split-system air conditioners, single-package air conditioners, split-system heat pumps and single-package heat pumps are assumed to have a service life of 18.4 years

• The baseline models used in the analysis were

Assumptions for sensitivity analysis

In addition to the base case analysis, sensitivity analyses were carried-out on the discount rate, energy prices and combinations of the two. All sensitivity analyses were calculated from the base case.

• For the discount rate sensitivity, the base case was re-evaluated using a real discount rates of 5% and 10% (see footnote 2);
• For the energy price sensitivity analysis, Canadian average prices were substituted with high and low regional energy prices, according to National Energy Board. (Canada's Energy Future 2003);
• In the combined energy price-discount rate sensitivity analysis, the base case was re-evaluated under two scenarios. The first scenario combined high energy prices with the low discount rate (5%). The second scenario combined low energy prices with the high discount rate (10%). This approach broadens the range of economic attractiveness presented in the discount rate sensitivity analysis and the energy price sensitivity analysis.

Results

Table I summarizes the net benefits from the proposed amendment for reach-in refrigeration, vending machines, large air conditioning equipment, water-source heat pumps and ground-source heat pumps, packaged terminal air conditioners and packaged terminal heat pumps, and residential air conditioners.

Table I: Summary of Net Benefits Analysis

The figures for each product in Table I reflect one design option that result in an efficiency improvement that meets the efficiency standards contained in this amendment.

In summary, the results of the analysis show that there are positive net economic benefits to Canada from adopting the minimum energy performance standards contained in this amendment. The sensitivity analysis indicates that the results are fairly robust for a wide range of assumptions. The benefits will vary by individual user depending on end-use sector, geographical location and/or operational practices.

Energy/GHG analysis

Methodology and assumptions

The energy savings impacts associated with the amendments were obtained by comparing the business-as-usual case (i.e. excluding the amendment) and the impact case. (i.e. the business-as-usual scenario including the amendment). The energy savings associated with ground-source heat pumps and residential air conditioners occur in the residential sector. The energy savings associated with reach-in refrigeration, large air conditioning equipment, water-source heat pumps and ground-source heat pumps, and packaged terminal air conditioners and packaged terminal heat pumps occur in the commercial sector. The analysis was conducted for units that would not meet the proposed minimum energy performance standard and that are considered to be the most popular of their class.

The reductions in GHG emissions were calculated by applying emissions factors consistent with those published by Environment Canada to the marginal fuels used to generate the electricity that would be saved through the amendment.

Results

The estimated energy savings impact of the amendment is presented in Table II. The results are presented for the years 2010, 2015, 2020, 2025 and 2030. Energy savings would begin to accrue with the implementation of the standard. Total energy savings associated with this amendment would be 1.64 petajoules annually in 2010 and would increase to 8.51 petajoules annually in 2030 as the sale of new more efficient equipment steadily replaces the pre-regulation stock.

Table II: Energy Savings (Petajoules)

^*Numbers may not add up because of rounding.

The estimated cumulative annual reductions in GHG emissions resulting from the aggregate energy savings are presented in Table III. GHG emission are estimated at approximately 0.16 megatonnes in the year 2010 and increases to approximately 0.84 megatonnes in the year 2030.

Table III: Reduction in Greenhouse Gas Emissions (Megatonnes)

^*Numbers may not add up because of rounding.

This report was prepared by Glen Ewaschuk who is a member of the Demand Policy and Analysis Division of the OEE which is part of Natural Resources Canada.

For information on this analysis please write to:

Glen Ewaschuk
Economist
Demand Policy and Analysis Division
Office of Energy Efficiency
580 Booth Street, 18th Floor
Ottawa, Ontario
K1A 0E4
E-mail: equipment@nrcan.gc.ca

Consultation

Consultation on these products was accomplished with three methods.

(i) The relevant Canadian Standards Association ("CSA") Technical Committees and Technical Subcommittees, assembled from stakeholders (including manufacturers, industry associations and other interested groups), provided input, reviewed and voted upon changes to the test standard. For some products, the proposed efficiency requirements have been incorporated into the test procedure standards.

(ii) Bulletins were distributed to interested stakeholders electronically. The distribution lists targeted key market channel stakeholders, key federal and provincial stakeholders, and general interest groups (advocacy groups, international regulators). Many of these individuals and organizations in turn forwarded the bulletins to provide access to a larger audience of stakeholders. Also, bulletins are posted on Energy Efficiency Regulations Web site (NRCan Web site) at http://oee.nrcan.gc.ca/ regulations/home_page.cfm and are often printed for distribution at trade shows.

(iii) Workshops were held when significant issues were raised that were best addressed as a group through the bulletin process. Invitations were sent out to identified stakeholders. In other cases, bilateral discussions were held with stakeholders.

General commentary

Written comments were received from the Canadian Standards Association regarding NRCan's proposal to reference standards other than National Standards of Canada in the Regulations. NRCan has referenced these standards because the national standards are not current and used by the industry. It should be noted that National Standards of Canada remain frequently referenced and it is NRCan's intention that this remain the common practice.

Section 11 of the Energy Efficiency Regulations

NRCan consulted with the Standards Council of Canada (SCC) and determined that the SCC accreditation process meets NRCan's needs for energy efficiency verification and that subparagraph 11(3)(b)(ii) of the Regulations is not required.

A bulletin describing the proposed modifications was sent electronically to stakeholders in October 2004 and posted on the NRCan Web site. One written response was received from the Gas Appliance Manufacturers Association (GAMA).

GAMA is requesting that NRCan accept GAMA's product certification program. NRCan has met with GAMA to discuss their concerns. GAMA will discuss certification body accreditation requirements with the SCC.

Beverage vending machines

A bulletin describing the proposed Regulations was sent to stakeholders in October 2004 and posted on the NRCan Web site. Five written responses were received.

The BC Hydro and a restaurant supported NRCan's proposed Regulations, and the New Brunswick government supported the proposed Regulations but did not think they were stringent enough. Both the soft-drink bottlers and the National Automatic Merchandising Association (NAMA) supported the proposed standard for single-package vending machines, but stated that the standard is not appropriate for "multi-package" beverage vending machines. Due to their glass fronts, it was not technically possible to meet the new standard (testing in 32.2°C ambient air).

NRCan held a workshop for interested stakeholders on December 8, 2004. NRCan presented the proposed Regulations, and noted comments from the stakeholders.

One of the issues raised, was that it was not technically possible for multi-package, glass-front vending machines to meet the energy efficiency levels when tested in 32.2°C ambient air. As a result, NRCan has modified the proposed Regulations and put in a separate category for multi-package vending machines, allowing them to meet the energy efficiency requirements in 23.9°C ambient air.

Since 99% of the solid-door beverage vending machines already meet the proposed energy efficiency levels (ENERGY STAR Tier I), there was agreement that NRCan should move the energy efficiency levels to ENERGY STAR Tier II for solid-door units only, with an effective date of January 1, 2008. NRCan plans to look into the development of an appropriate energy efficiency standard for glass-front vending machines. It was also agreed that NRCan should also require a low-power mode for all vending machines, in order to harmonize with ENERGY STAR and the California Energy Commission (CEC).

Another issue raised by a bottler and NAMA, was that for solid-door machines that are used only indoors, NRCan should allow the energy efficiency levels to be met in 23.9°C ambient air rather than in 32.2°C ambient air. NRCan decided to leave the requirement at 32.2°C ambient air in order to harmonize with the CEC's regulations. NRCan also plans to look into the development of an appropriate energy-efficiency standard for glass-front vending machines.

One manufacturer said its glass-front vending machine, which dispenses both packaged snacks and bottles, would not be able to meet NRCan's energy efficiency levels, even in 23.9°C ambient air. This type of vending machine has been put in a separate category, called "snack and refrigerated beverage vending machines," and has been given an extra year (until January 1, 2007) to comply.

In April 2005, a second bulletin, describing the revisions to the proposed Regulations, was sent by electronic mail to stakeholders and posted on the NRCan Web site. There were written responses from three manufacturers, a soft-drink bottler and NAMA.

NAMA recommended delaying the effective date by a year to January 2007. NRCan decided on a six-month delay to June 2006. (Manufacturers already have to meet the California Energy Commission's effective date of January 2006 for similar regulations.)

One manufacturer recommended removing the low-power mode requirement for multi-package vending machines that can vend dairy and other perishable products requiring a constant low temperature, and if the low-power mode is used it could expose consumers to unsafe food and beverages. NRCan will leave the low-power requirement in, to harmonize with California, and because the energy savings are considerable. The vending machine only has to have a low-power capability the operator is not required to use it. Machines that are vending temperature-sensitive product, such as milk, need not have the refrigeration low-power state enabled on site thus mitigating the risk of product spoilage.

One manufacturer said the definition of beverage and snack vending machine was too complex. NRCan has simplified the definition.

A beverage bottler said that snack and refrigerated beverage vending machines are CSA Type H and have a fixed energy threshold, not tied to the number of cans held. NRCan will leave the energy efficiency levels unchanged as these machines are included (without giving them a separate category) in California's regulations for refrigerated canned and bottled beverage vending machines.

Commercial reach-in refrigeration

A bulletin describing the proposed Regulations was sent to stakeholders in October 2004 and posted on the NRCan Web site. Three written responses were received.

The New Brunswick government supported the proposed Regulations but did not think they were stringent enough. The ACEEE (American Council for an Energy-Efficient Economy) said that the NRCan proposal was extremely weak and would save little energy. As a minimum, the ACEEE felt that NRCan should adopt the California Energy Commission's Tier II standard. A manufacturer felt that its two-door glass slider unit would have difficulty meeting the new requirements.

NRCan held a workshop for interested stakeholders on December 7, 2004. NRCan presented the proposed Regulations, and noted comments from the stakeholders.

One manufacturer thought the effective date of January 2006 was not realistic, as the manufacturer needed more time to test its products, and make the necessary modifications required to meet the new standards. NRCan therefore extended the effective date by one year to January 2007.

The same manufacturer also felt there should be a separate category for units with sliding doors, as intuitively they would use more energy than units with hinged doors. However, U.S. tests have shown that sliding-door units use less energy than hinged-door units because of the door-opening part of the ASHRAE 117 test.

The manufacturer also felt the Regulations should exclude refrigerators and freezers that also have to meet food safety regulations (such as a pull-down test to cool food quickly). NRCan believes that this is an issue that all manufacturers face and that the technology exists to meet both regulations, as there are units already on the market that meet both requirements.

The manufacturer also noted that California has gone to Tier II energy efficiency levels, and felt that Canada should follow so that Canadian manufacturers were not at a disadvantage. ACEEE also felt that the Canadian proposal, to go to CEC Tier I levels, was weak. NRCan therefore proposes going to CEC Tier II energy efficiency levels on January 1, 2008, one year after going to CEC Tier I.

The manufacturer questioned the wisdom of requiring the refrigerator or freezer volume to be measured using AHAM (Association of Home Appliance Manufacturers) standard HRF-1, which was written for household units. NRCan needs a way of measuring volume that is consistent with what other organizations are using, and AHAM HRF-1 is called up by both the CSA in its standard and by CEC.

Another issue concerned "no-door" refrigerators. These were to be covered under the CEC regulations, but not Canada's. In order to harmonize with CEC, NRCan proposed that "no-door" refrigerators should meet the same efficiency levels as glass-door units.

In April 2005, a second bulletin, describing the revisions to the proposed Regulations, was sent electronically to stakeholders and posted on the NRCan Web site. Written responses were received from three manufacturers, an individual and the Air-Conditioning and Refrigeration Institute (ARI).

There were many comments saying that the efficiency levels proposed for no-door units for bottled or canned beverages are unattainable, and that California had dropped regulating no-door units at the last minute. One manufacturer questioned why only no-door units that sold bottled or canned beverages were covered, and not units that sold refrigerated food. NRCan agrees that more information is required regarding the energy efficiency levels of no-door units currently in the market. NRCan will harmonize with the CEC and require manufacturers to report and verify the energy efficiency levels of their no-door beverage merchandisers, but their energy efficiency levels will not be regulated at this time. NRCan will extend this reporting to cover all self-contained, no-door refrigerators and freezers. NRCan will also initiate a test program on some no-door units.

A manufacturer asked if the Regulations covered preparation tables (which have a refrigerator under the counter and cool the food on the top back with cool air). NRCan decided not to cover preparation tables, as they cannot be tested to ASHRAE 117. The manufacturer also asked if buffet tables (which have an open top) were covered. NRCan will also exempt buffet tables as they are not intended for long-term storage of food and cannot be tested with ASHRAE 117.

Packaged terminal air conditioners and heat pumps

A bulletin was sent to stakeholders in March 2003 and posted on the NRCan Web site. The proposed efficiency levels were the same as those in ASHRAE 90.1, with the addition of minimum efficiency levels for replacement units. Vertically oriented packaged terminal air conditioners and heat pumps (PTAC/HP) were also included initially. Comments were received from industry that the proposed minimum efficiency levels for vertical PTAC/HP equipment were too stringent. NRCan has removed the vertical units and expects to address this equipment at a later date. In addition, industry supported having separate efficiency levels for replacement equipment.

During 2003, the CSA subcommittee developing the test method was active, with the result that a harmonized test method CSA C744-04 was jointly published by CSA and ARI.

A second bulletin was distributed in September 2004, addressing only horizontally oriented PTAC/HP equipment for both new and replacement applications. No additional comments were received.

Large air conditioners and heat pumps

Large air conditioners and heat pumps are used for heating and cooling large commercial buildings. NRCan posted a bulletin on the NRCan Web site and distributed it to stakeholders in August 2004.

The proposed minimum efficiency requirements were initially taken from CSA C746-98, which were similar to ASHRAE 90.1-1999 levels. A number of comments were received pointing out minor differences between CSA C746-98 and ASHRAE 90.1 and encouraging NRCan to specify the requirements of ASHRAE 90.1. Those changes were made.

ARI commented that performance at -8.3°C for heat pumps should not be required since U.S. regulations do not specify this value. NRCan has retained this rating point, since efficiency for heating at lower temperatures is an important factor in Canada, and ASHRAE 90.1 specifies this rating point.

Ground-source heat pumps and internal water loop heat pumps

Water loop heat pumps are used to heat and cool commercial buildings. This equipment allows simultaneous heating and cooling of different spaces within a building. Ground-source heat pumps use a buried or submerged heat exchanger loop and when installed this way are called closed-loop. These heat pumps can also be used with well or surface water in an open system.

In 2003, NRCan undertook a study to assess the economics and technical feasibility of higher minimum energy performance standards. Efficiency levels proposed initially were taken from CSA C13256-1, except higher efficiency requirements for closed-loop systems were evaluated and found to be cost effective. The proposed effective date was September 2005.

A bulletin was posted and distributed in August 2004 outlining the proposed amendments. In late September 2004, the Earth Energy Association of Canada organized a conference call meeting to discuss the proposed changes. Participation was limited, however, the following comments were received.

A Canadian company noted that additional time was required for design, construction and testing in order to make efficiency changes to their line for ground-source heat pumps. This company did not recommend a higher efficiency level in Canada for closed-loop ground source heat pumps. This comment, against higher efficiency, was also made by a U.S. company which stated that it would not produce a higher efficiency model only for Canada. This company does produce a higher efficiency, higher priced model, but the representative argued that the technology is more expensive, and this would hurt the ability to compete against less efficient alternatives such as air-source heat pumps.

No comments were received regarding the proposed minimum efficiency levels and implementation date for equipment used in internal water loop systems.

The implementation date for ground-source heat pumps was delayed until June 1, 2006 to allow sufficient time, to upgrade and test higher efficiency equipment. The implementation date for internal water loop heat pumps remained at September 1, 2005.

NRCan's proposal to increase the minimum efficiency above the level of CSA C13256 and ASHRAE 90.1 for closed-loop ground-source heat pump will be delayed until a later date.

Central air conditioners and heat pumps less than 19 kW (65 000 Btu/h)

There are about 250,000 central air conditioners and heat pumps less than 19 kW (65 000 Btu/h) in size sold in Canada per year. About 60% are sold in Ontario. Sales of heat pumps have increased significantly in areas where no natural gas is available.

During 2003 and 2004, the CSA subcommittee was active in combining previously separate standards for single- and 3-phase equipment into a single test method, CSA C656-04. The new test method incorporates the latest U.S. Department of Energy (DOE) Appendix M test method.

The Heating, Refrigeration, and Air-Conditioning Institute (HRAI), representing the air conditioning industry in Canada, submitted a letter to NRCan supporting harmonization of efficiency levels with the levels approved in the United States for January 23, 2006.

NRCan distributed and posted a bulletin in July 2004 in which the same minimum efficiency levels as in the U.S. were proposed.

Air conditioners are not typically used for extended periods during the summer in Canada. However, air conditioners contribute directly to the need for new electricity generation, and therefore result in higher rates for electricity customers. To address this problem, NRCan proposed mandatory reporting of energy efficiency ratio (EER) at 35°C for the benefit of electricity utilities and their customers in those areas that are summer electricity peaking, notably in Ontario where there is little excess generating capacity. Other provincial utilities, Manitoba Hydro and BC Hydro, responded with interest in peak demand reduction potential of more efficient air conditioners since generating capacity could be made available for future development and for export of electricity.

NRCan proposed mandatory reporting of EER at 35°C which is the recognized metric for efficiency at higher temperatures during high temperature peak demand periods. But however, manufacturers, through HRAI and ARI, objected to mandatory reporting of EER, citing reasons of extra cost in testing, the possibility of creating confusion for purchasers, and concern about the validity of the EER data which is presently voluntarily reported. A conference call and then a consultation workshop were held to gather more information on this issue. About 30 people attended the consultation workshop including manufacturers, HRAI, ARI, and electricity utility representatives. The workshop served to illustrate the significant reduction in peak demand available with higher EER equipment.

Since Ontario utilities are still in the planning stage for demand side management (DSM) programs, and since ARI has committed to a verification process that will improve the quality of EER data, NRCan has decided to continue to have EER ratings reported on a voluntary basis. If EER ratings are not reported voluntarily and verified by ARI, mandatory reporting will be incorporated into a future amendment to the Energy Efficiency Regulations. NRCan will make the EER ratings available to electrical utilities.

In the United States, air conditioners and heat pumps under 19 kW operating on 3-phase power were not addressed. NRCan has done additional research to ensure that 3-phase equipment is available and has concluded there are no technical barriers to including 3-phase equipment. NRCan's existing Energy Efficiency Regulations treat single and 3-phase equipment equally.

Chest freezer with automatic defrost system and refrigerators and freezers with natural compressor cycling auto-defrost system

The U.S. DOE recently issued a product exemption for automatic defrost chest freezers, and a direct final rule for compact refrigerators using compressor cycling as its automatic defrost mechanism. At this time, NRCan is proposing to amend the Regulations to harmonize with the U.S. definitions of auto-defrost (now including natural compressor defrost systems) and the new U.S. minimum performance levels provided for automatic-defrost chest freezers. NRCan will also support a revision to the CSA C300-00 standard to be referenced in a future amendment to the Regulations.

Also, this amendment will ensure that labels are harmonized in Canada and the U.S. chest freezers with automatic defrost (new type — Type 10A) will be labelled using the EnerGuide label for appliances as per Part III of the Regulations.

A bulletin was sent to all stakeholders and posted on the NRCan Web site in November 2004. There were written responses from one manufacturer, a provincial utility, a provincial government, CSA, CSA International, the Association of Home Appliance Manufacturers (AHAM), and a consumer.

All comments with respect to the proposed amendment were positive and no significant issues were identified. One clarification was made to AHAM and W.C. Wood Company Limited with respect to products with compressor-cycled automatic defrost systems. The amendment will apply to all full size and compact refrigerators, refrigerator-freezers and freezers that use the natural compressor cycle as the defrost system.

Combination refrigerator-freezer, with bottom-mounted freezer and through-the-door-ice service with an automatic defrost system

The U.S. DOE has recently issued a product exemption that provides a new minimum performance level for a combination refrigerator-freezer, with bottom-mounted freezer and through-the-door-ice service with an automatic defrost system. At this time, NRCan amends the Regulations to ensure that performance levels and labels are harmonized in Canada and the United States. NRCan will also support a revision to the CSA C300-00 standard to be referenced in a future amendment to the Regulations.

Combination refrigerator-freezer, with bottom-mounted freezer and through-the-door-ice service with an automatic defrost system (new type — Type 5A) will be labelled using the EnerGuide label for appliances.

In August 2005, a preliminary consultation with AHAM and the Canadian Appliance Manufacturers Association (CAMA) was conducted in order to inform and get preliminary feedback from stakeholders most affected by this amendment. NRCan has received positive feedback from both industry associations.

Exit signs

During the consultation for the recent addition of internally-lighted exit signs to the Energy Efficiency Regulations, industry raised a concern regarding potential "stock-piling" of inefficient products as a way of circumventing the Regulations and delaying the positive environmental impact of the higher efficiency exit signs. NRCan recognizes that this concern is substantial and has merit unique to the exit sign industry. NRCan gave notice, at that time, of its intention to propose a future amendment to the Regulations to repeal the November 1, 2004 completion date. This would be effective upon registration of the current amendment. This will provide approximately seven to nine months for product manufactured prior to the completion date to clear the distribution chain and will require that all exit signs comply with the minimum performance standard, regardless of the date of manufacture. Industry and stakeholders have reached an agreement for this amendment and they will ensure that the savings attributable to the energy efficient exit signs are achieved within a reasonable time period.

Fluorescent lamp ballasts

On April 1, 2005 new minimum efficacy factors came into effect for fluorescent lamp ballasts. These issues have been discussed with industry stakeholders through bulletins (March and August 2005) and at Canadian Lighting Industry Collaborative meetings.

Since the publication of this amendment in the Canada Gazette, Part II, in April 2003, a number of issues have been raised by industry stakeholders.

NRCan is proposing to amend the exclusion for low temperature ballasts. The exclusion would only apply to ballasts that operate two 96WT12 lamps designed for temperature of -28°C (-20°F) or lower and used in outdoor signs. This change will now be harmonized with the U.S. Rule and ensure that the predicted energy savings are achieved.

NRCan is proposing to add an exclusion for ballasts with integrated dimming capability to less than 50% of their rated capacity.

Some manufacturers wanted to exclude ballasts capable of dimming with external dimming controls; however, this would have allowed all ballasts installed with external dimming controls to be excluded from this Regulation and would effectively bring us back to status quo in regards to the use of low efficiency magnetic ballasts. This is now essentially harmonized with the U.S. Rule, with a clarification that the dimming control be "integrated" with the ballast.

The issue of potential "stock-piling" of inefficient products was raised as a way of circumventing the Regulations and delaying the positive environmental impact of the higher efficiency fluorescent lamp ballasts. NRCan is proposing to repeal the completion date (date of manufacture) for the April 1, 2005 levels. Lower efficiency products will have had 15 months to clear the distribution chain. The completion date for "replacement" ballasts remains April 1, 2010.

NRCan is proposing that ballasts used with energy saving lamps (34WT12, F96T12 and F96T12HO) be required to meet new specific ballast efficacy factors. NRCan proposed that these new efficacy factors be in effect as of July 1, 2006. With the efficacy factors established in April 2005, there was still an opportunity for a ballast operating two 34WT12 ES lamps to meet the new levels using a magnetic ballast. The intent of the new ballasts efficacy factors was to move the market toward the more energy efficient electronic ballasts.

The U.S. DOE Energy Bill requires that the energy saving ballasts meet the same new efficacy factors; however the U.S. DOE process imposes time constraints to a minimum of three years between the date a rule is issued and its effective date. DOE's time line for energy saving lamps is as follows:

1. Manufactured on or after July 1, 2009;

2. Sold by the manufacturer on or after October 1, 2009;

3. Incorporated in a luminaire by a luminaire manufacturer on or after July 1, 2010;

4. Used as a replacement ballast on or after July 1, 2010.

NRCan believes that its proposal meets the intent of the original legislation (dated April 2003) and that this is sufficient notice for implementation.

NRCan is proposing to lower the power factor of a specific group of ballasts used in residential applications from 0.9 to 0.5. This will only apply to ballasts operating F32T8 lamps, with a color rendering index (CRI) greater than 75 and operating at 120 volts.

Residential Light Fixtures (RLF) have been a part of the Environmental Protection Agency's ENERGY STAR Program in the United States, but have not yet been adopted in Canada. In the United States, the power factor of ballasts in residential fixtures is not regulated. The ENERGY STAR Program is the United States has adopted a power factor of 0.5 or greater for ballasts used in RLF. In Canada, the Regulations stipulate that regulated ballasts must have a power factor equal or greater than 0.9, independent of its applications. Concerns were expressed on the part of some utilities and provincial governments, that lowering the power factor in residential applications would cause problems with higher total harmonic distortion on the system. Manufacturers were concerned that leaving in a power factor level of 0.9 for residential applications would reduce the availability of RLF in Canada, thus potentially increasing prices. Some utilities expressed the need to adopt the ENERGY STAR Program for high energy efficient RLFs in Canada, in order to allow for a greater variety of fixture models to be available to the consumer, and to influence market transformation.

Dry-type transformers

On January 1, 2005, minimum energy performance standards came into effect for dry-type transformers. Transformers with tap ranges greater than 10% were specifically excluded from the Regulations and harmonized with the reference test procedure CAN/CSA C802.2 "Minimum Efficiency Values for Dry-Type Transformers". The tap range is the difference (in percentage) between the highest voltage tap and the lowest voltage tap, compared to the nominal voltage. Stakeholders alerted NRCan that it could be possible to take advantage of the exemption thereby reducing the energy savings impact of the standard.

In June 2005, NRCan held a workshop with interested stakeholders, particularly the manufacturers, to discuss removing the tap range exemption altogether. There were 20 attendees, including representatives from 8 manufacturers. The manufacturers agreed that there was no market for transformers with a tap range greater than 15%, and that NRCan could eliminate the tap range exemption completely. The manufacturers also agreed to modify the definition of a dry-type transformer to strike out the line "...and has a secondary voltage of 600 volts or less". In addition, the manufacturers agreed to remove the exemption for drive (isolation) transformers that have a single output winding. Drive transformers with two or more output windings remain excluded from the Regulations.

Results of consultation post pre-publication

The amendment and RIAS were pre-published in the Canada Gazette, Part I, on May 6, 2006. A bulletin was posted to the NRCan Web site shortly afterwards. The bulletin was also sent out to over 2,700 industry stakeholders and interested parties (1,800 electronically, 700 by fax, and 200 by mail).

During the 75-day comment period ending July 19, 2006, NRCan received a total of 15 comments from manufacturers (12), distributors (2) and manufacturers' associations (1). These comments were directed to products as follows:

• Beverage vending machines - manufacturer (1)
• Dry-type transformers - manufacturers (6) and distributors (2)
• Reach-in commercial refrigeration - manufacturers (4) and a manufacturers' association (1)
• Large air conditioners and heat pumps - manufacturer (1)

In addition for central air conditioners and heat pumps less than 19 kW (65 000 Btu/h) several manufacturers and a certification body requested clarification of the effective date of the Regulations and a with regard to section 11 another manufacturer's association wrote to NRCan advising us of their intention to engage in the certification body accreditation process with the Standards Council of Canada.

It is worthwhile noting that significant early consultation has allowed NRCan to address the majority of issues prior to pre-publication in the Canada Gazette, Part I.

The following comments were received, considered and addressed:

Standing Joint Committee on the Scrutiny of Regulations

No comments were received. However, in reassessing the various reporting elements of the Regulations NRCan has determined that the reporting requirements in section 16 associated with non-compliant products that are to be incorporated into products destined for export have been unused since their implementation. NRCan is thus removing those requirements until a need for such has been demonstrated.

Beverage vending machines

One manufacturer requested a delay in the effective date as testing and verification could not be completed in time. NRCan agreed to delay the effective date to January 1, 2007.

Commercial reach-in refrigeration

A manufacturer commented that the proposed energy use for small opaque door freezers would be more stringent than for refrigerators. NRCan agreed and relaxed the requirement. For freezers of volume less than 340 litres, the maximum allowable daily energy consumption will be constant (independent of the volume). The requirements will be 7.62 kWh/day in 2007 and will be reduced to 7.07 kWh/day on January 1, 2008.

NRCan received comments about the proposed test methods. One manufacturer requested the use of the latest ASHRAE test method. NRCan decided to retain test methods ASHRAE 117-1992 for closed units and ASHRAE 72-1998 for no-door units. These test methods continue to be used and are harmonized with the requirements of the California Energy Commission. Changing to the latest test method would have raised the concern about manufacturers having to test to two different test standards.

The Air-Conditioning and Refrigeration Institute, the U.S. industry association, indicated support for adoption of the ASHRAE 72-2005 test method as it is being referenced in the U.S. regulatory proposal of July 2006. However, as the proposed U.S. minimum performance standards are not expected to come into effect until 2010, NRCan intends to reference the operative test standards and move to the 2005 version of the test method in a future amendment.

There was also concern with the use of salt solution in the filler packages as specified in these test methods. A change has been made to allow the use of either propylene glycol or salt solution.

Changes proposed in the last bulletin were clarified so that the reference in Schedule 1 to cabinet drawers applies only to opaque cabinet drawers and that commercial freezers without doors like commercial refrigerators without cabinet doors were also only subject to reporting and verification requirements.

The implementation date has been delayed until April 1, 2007 to allow extra time for testing and verification.

Large air conditioners and heat pumps

One manufacturer pointed out an error in the efficiency requirement for one category of equipment and an incorrect description. These have been corrected.

Dry-type transformers

One manufacturer and two distributors wanted the effective date to be the order date rather than the date of manufacture. Two manufacturers wanted the Regulations to become effective as soon as possible. NRCan decided to keep the effective date based on manufacturing date (completion date) because:

• manufacturers have known these Regulations were coming since NRCan held a workshop in December, 2004;
• the consensus at that workshop was that the amendment should be implemented immediately;
• some manufacturers will be at a competitive disadvantage if the effective date is based on anything other than the date of manufacture. They have already committed to manufacturing only compliant transformers after the effective date and have turned away orders in anticipation.

One manufacturer proposed an exemption for transformers with dual secondary-voltage. NRCan consulted transformer manufacturers, and two disagreed with this proposal. One stated that manufacturers could use this exemption as a loophole to bypass the Regulations. Consequently, NRCan decided not to exempt dual secondary-voltage transformers.

One manufacturer requested an exemption for transformers that are either imported or sent across a provincial boundary to be installed on machineries to be exported from Canada. NRCan agreed, and revised section 16 of the Regulations accordingly.

In addition, transformers definitions and exclusion additions affecting non-ventilated, sealed and encapsulated transformers were done to harmonize with the upcoming revisions to CSA C802.2-06.

A change was also made to the test standard and reporting requirements to be more explicit in harmonizing with the current and upcoming test standard. These changes reflect current reporting practice and permit determination of the minimum energy efficiency levels for a sub-group of transformers.

Compliance and Enforcement

It is expected that the compliance and enforcement procedures already in place for all products regulated under the Energy Efficiency Regulations will continue to serve well for these products. The main features of this system are described below.

Customs monitoring

NRCan's procedures for commercial imports of prescribed products will apply to products prescribed under the amendment. This involves cross-checking data received from customs release documents with the Energy Efficiency Reports that dealers must submit to NRCan as specified in Part V and Schedule IV of the Energy Efficiency Regulations. This cross-checking ensures that NRCan can verify the compliance of imports clearing customs.

Verification marking

For products prescribed under the Energy Efficiency Regulations, NRCan employs a third-party verification system using the services of certification organizations accredited by the Standards Council of Canada.

Direct fieldwork — Market survey and product testing

NRCan will conduct product testing on a complaint driven basis. The market is highly competitive and suppliers are cognizant of performance claims made by their competitors. Challenges by which performance claims can be questioned exist in all verification programs.

Conclusion

An appropriate level of compliance with the amendment will result from support by North American manufacturers, third party verification, customs monitoring, cooperation with regulating provinces, communication activities, market surveys and product testing as required.

Contact

John Cockburn
Senior Chief
Standards and Labelling
Office of Energy Efficiency
Natural Resources Canada
1 Observatory Crescent, 2nd Floor
Ottawa, Ontario
K1A 0E4
Telephone: (613) 996-4359
FAX: (613) 947-5286
E-mail: equipment@nrcan.gc.ca

Footnote a

S.C. 1992, c. 36

Footnote b

S.C. 1992, c. 36

Footnote 1

SOR/94-651

Footnote 2

The Treasury Board (of Canada) recommends a cost-benefit analysis to be conducted using a 10% real social discount rate

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with hypertext language (HTML). Its content is very similar except for the footnotes, the symbols and the tables.

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