Canada

CA-1:Energy Efficiency Standards and Labelling program (EESL program)

Policy Description

The Energy Efficiency Standards and Labelling program is part of the Natural Resources Canada (NRCan) Equipment Sub-Sub Activity.  The program develops, delivers and enforces the Energy Efficiency Regulations for Minimum Energy Performance Standards (MEPS) and Product Labelling.

Description

The Energy Efficiency Standards and Labelling program is part of the Natural Resources Canada (NRCan) Equipment Sub-Sub Activity.  The program develops, delivers and enforces the Energy Efficiency Regulations for Minimum Energy Performance Standards (MEPS) and Product Labelling [1].

The Energy Efficiency Act (the Act) of 1992 gives the Government of Canada the authority (Natural Resources Canada) to make and enforce regulations requiring energy-using products to meet minimum energy-performance standards (MEPS) and to make and enforce product labelling requirements [1].The Energy Efficiency Regulations apply to “dealers” who: i) import regulated energy-using products into Canada for sale or lease or ii) ship regulated energy-using products that are manufactured in one Canadian province to another for sale or lease (*1).

 

The dealer must ensure that: i) the product meets the energy efficiency standard specified in the Regulations, ii) an energy efficiency report has been filed with NRCan, iii) they provide the necessary import information to Canada Border Services Agency, iv) when importing products ensure the product bears an energy efficiency verification mark and v) ensure an EnerGuide label or lighting product label is affixed to the product (if prescribed by the Regulations).

 

The Energy Efficiency Regulations have been in effect since 1995 and, to date, they have been amended 10 times to incorporate new MEPS for additional products or to increase the stringency of existing MEPS.  While the majority of the energy using products covered under the Regulations are most commonly used in the residential and commercial/institutional building sectors, a small number of covered products are common to industrial facilities.  For instance, NRCan has prescribed energy efficiency requirements for electric motors since 1995 (1-200 HP), dry-type transformers since 2005, and gas and oil fired boilers (*2). The labeling requirements under the regulations largely pertain to products which are not used in the industrial sector. In the case of labeling for lighting, the requirements pertain to products that, at best, represent an extremely small percentage of the total energy used in this sector (*3).

 

NRCan is committed to harmonizing standards and labelling requirements with those developed in other jurisdictions, including the United States.  NRCan participates in standards development and conformity assessment through the National Standards System (NSS).  Test standards developed through the NSS are often incorporated by reference in the Regulations as well as by those provinces that have their own MEPS legislation and regulations.

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative, Standards, Administrative

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 1995

Agencies Responsible

Natural Resources Canada (NRCan)
Canadian Border Services Agency

Primary Objective: Energy

Objective

­- to reduce Canada’s greenhouse gas emissions and associated harmful air pollutants through the elimination of the least efficient products ­- to ensure Canada remains competitive and a leader in reaping the benefits and associated energy savings for all Canadians

Target Group

A dealer is defined in the Energy Efficiency Act as a person engaged in the business of: i) manufacturing energy-using products in Canada, ii) importing energy-using products into Canada or iii) selling or leasing energy-using products obtained directly or indirectly from a person engaged in a business described in a) or b) or an agent thereof.

Driver of energy consumption or emissions affected by policy: Total energy use / Specific energy consumption/ Relative efficiency / Rate of change / Technology implementation rate

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

Quantitative Target? yes

Target:  Regulations specify energy use performance standards  Government establishes aggregate annual targets for energy savings and CO2 reductions (*5).

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Sanctions: The Act prescribes specific enforcement measures when dealers violate the law which include: i) preventing the importation of non-compliant products to Canada, ii) preventing the sale or lease of non-compliant products in Canada iii) imposing fines and iv) criminal prosecutions for the most serious violations.

Requirements on the Target Group

  • Dealers are responsible for ensuring that each model of a regulated product they import into Canada for sale or lease, or ship from the province of manufacture to another province meets the energy efficiency standard set out in the Regulations. Dealers must ensure that: i) the product meets the energy efficiency standard specified in the Regulations, ii) an energy efficiency report has been filed with NRCan, iii) provide the necessary import information to Canada Border Services Agency, when importing products, iv) the product bears an energy efficiency verification mark and v) ensure an EnerGuide label or lighting product label is affixed to the product (if prescribed by the Regulations)
  • A dealer who imports a regulated energy-using product into Canada must, at the time of release, include specific information regarding the product, as well as the purpose of its importation on the customs release document (e.g., customs or commercial invoice, bill of sale, price list). (*4), (*6).

Support by Government

  • Dealer awareness, understanding and technical capacity to comply with the newly introduced MEPS are facilitated through the development of national standards and stakeholder consultations well before the introduction of proposed regulations
  • NRCan facilitates the reporting of new requirements by providing all manufacturer/dealers of these products with standardized energy efficiency report forms and works with Canada Border Services Agency (CBSA) to clearly communicate to customs brokers and dealers that reports of new product imports can now be submitted electronically

Implementation Toolbox

Standardised report forms.

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions ­ In preparing amendments to the Regulations, NRCan analyzes the impact of proposed MEPS amendments and the information is made available through Regulatory Impact Analysis statements. For the most recent regulatory amendments for high performance motors (amendment 11, P.C. 2011-930 September 22, 2011), the projected impacts are estimated as: 16.3 PJ in 2010 and 17.7 PJ in 2020; 2.03 MT CO2 in 2010 and 2.14 MT CO2 in 2020 [3]. ­ For the industrial sector as a whole, the proposed MEPS amendments for all products are estimated to achieve 1.07 PJ by 2020 and 2.31 PJ by 2030 and 0.13 MT CO2 by 2020 and 0.3 MT CO2 by 2030 [4]. ­ Due to the regulation of most 1 – to 200-horsepower motors in 1997, the industrial sector will be saving 9.5 petajoules annually by the year 2010 [4]. ­ Evaluation of Natural Resources Canada's (NRCan's) Equipment Sub-Sub Activity, which includes the Energy Efficiency Standards and Labelling Program, covering 2004–05 to 2008–09 and all sectors, resulted in 13.4 to 14.9 PJ annual savings (2010) [5].
Estimated costs/benefits for industry not available
Estimated cost for government

References & Footnotes

References

[1] Natural Resources Canada-Office of Energy Efficiency web site http://oee.nrcan.gc.ca/regulations/16802

[2] Natural Resources Canada-Office of Energy Efficiency web site http://oee.nrcan.gc.ca/regulations/17311

[3] Canada Gazette, http://www.gazette.gc.ca/rp-pr/p2/2011/2011-10-12/html/sor-dors182-eng.html

[4] Natural Resources Canada, Improving Energy Performance in Canada, Report to Parliament Under the Energy Efficiency Act for Fiscal Year 2009-2010

[5] Natural Resources Canada, Evaluation of the Equipment Sub-Sub Activity, http://www.nrcan.gc.ca/evaluation/reports/2010/2885

Footnotes

(*1) A dealer is defined in the Energy Efficiency Act as a person engaged in the business of: i) manufacturing energy-using products in Canada, ii) importing energy-using products into Canada or iii) selling or leasing energy-using products obtained directly or indirectly from a person engaged in a business described in a) or b) or an agent thereof (1).

(*2) Information on the requirements and standard for these products is located on the NRCan web site (2).

(*3) Currently, the labelling requirements pertain to: general service incandescent reflector lamps, CFLs and general service lamps (common light bulbs).

(*4) Under the Regulations, the dealer requirements are mandatory. The product labeling requirements are mandatory if prescribed by the Regulations.

(*5) The target setting takes into account existing product energy efficiency requirements, as well as planned updates to the existing requirements and may also take into account planned new product additions.

(*6) Natural Resources Canada (NRCan captures information from energy efficiency reports and import documents).