ARCHIVED — Regulations Amending the Energy Efficiency Regulations

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Vol. 145, No. 16 — April 16, 2011

Statutory authority

Energy Efficiency Act

Sponsoring department

Department of Natural Resources

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary


Issue: Delaying the date for compliance with Canada’s efficiency standards for general service lighting for 100/75/60/ 40 W light bulbs (general service lamps) is required in order to strengthen communication activities, to allow for technology innovations and to consider the concerns expressed about the availability of compliant technologies and perceived health and mercury issues, including safe disposal for compact fluorescent lamps (CFLs).

Description: The proposed amendment would delay the completion dates for general service lighting currently prescribed in the Energy Efficiency Regulations (the Regulations) by two years to January 1, 2014, for 100/75 W bulbs and to December 31, 2014, for 60/40 W bulbs.

Cost-benefit statement: By delaying the standards, the net benefit to Canadians would decrease by $303 million over the service life of general service lamps shipped by 2020. The cumulative impacts during the 2012–2030 time period of the two year delay would result in a decrease in energy savings of 88.1 petajoules (PJ) [going from 882.4 PJ to 794.2 PJ]. As a result, by Natural Resources Canada’s assessment, the greenhouse gas (GHG) emissions savings would decrease by 12.88 megatonnes (Mt) [from 128.5 Mt to 115.6 Mt]. These effects would occur predominantly in the first years of policy implementation.

Business and consumer impacts: The effects on industry of the proposed change in completion dates for compliance with the standard are unknown at this time.

Domestic and international coordination and cooperation: Canada is part of a broadly coordinated international effort to implement standards to improve the efficiency of general service lighting by phasing out the use of inefficient light bulbs. All developed markets have made commitments to establish standards for this application, including the United States,

European Union member countries and Australia. The standard has also been implemented in California and British Columbia and has been proposed in Ontario. The delays would result in Canada’s implementation schedule for these standards to be one or two years behind the schedule of the United States, depending on the wattages.

Performance measurement and evaluation plan: A performance measurement and evaluation plan specific to this amendment is being developed for publication.


Issue

Canadians have expressed concerns about certain aspects of the minimum energy performance standard for light bulbs scheduled to affect 100 and 75 W bulbs on January 1, 2012, and 60 and 40 W bulbs on December 31, 2012. This amendment proposes to delay the effective dates for these wattages by two years in each case in order to enable Canadians to better understand the benefits of the standards, the alternatives that will be available to them and to allay their concerns.

Background

The existing energy efficiency standard for general service lighting (light bulbs) was introduced by the Minister of Natural Resources and the Minister of the Environment in 2007. The consequent Regulations came into force in December 2008 and applied to 100 and 75 W bulbs manufactured on or after January 1, 2012, and to 60 and 40 W bulbs manufactured on or after December 31, 2012. The Regulations prohibit the importation and interprovincial shipment of non-compliant products. The Regulations provide for a number of alternatives to inefficient bulbs. Where no alternatives exist, exemptions are made.

Since the publication of the Regulations in 2008 in the Canada Gazette, Part II, concerns have continued to be expressed by consumers and the media predominantly about one of the available compliant technologies: compact fluorescent lamps (CFLs). These concerns are focused mainly on perceived health issues and mercury content. These questions were addressed during consultations on the standard, however, it is clear that evidence to allay these concerns has not been fully communicated and understood.

Canada is part of a broadly coordinated international effort to implement standards to improve the efficiency of general service lighting by phasing out the use of inefficient light bulbs. All developed markets have made commitments to establish standards for this application, including the United States, European Union member countries and Australia. The standard has also been implemented in California and British Columbia and has been proposed in Ontario.

Objectives

Reducing greenhouse gas emissions and air pollution remains a high priority for the Government and minimum energy performance standards are one of the most cost effective means of achieving this priority. In the case of the minimum energy performance standards for general service lighting, it is clear that there are public misperceptions (concerns) as to what the standards entail and the choices that will be available to Canadians once they are in place.

There has been widespread public discussion concerning one of the common alternatives to inefficient lighting: the CFLs. Concerns have been expressed about perceived health effects associated with the use of CFLs and also, given that they necessarily contain mercury, about disposal issues that may arise from their increased use.

Efforts have been underway for some time to respond to the health concerns. For example, Health Canada and health authorities of other governments have conducted research that indicates that, with respect to ultraviolet radiation and electromagnetic emissions, CFLs do not constitute a health risk.

On February 26, 2011, Environment Canada published in the Canada Gazette, Part I, regulations limiting mercury content and announced that requirements for producer responsibility will be made known in the near future.

The proposed amendment would delay the implementation of the standards for general service lighting by two years for all wattages so that implications for lighting choices for Canadians can be more effectively communicated to them. The proposed amendment would also allow programs dealing with the disposal of CFLs to be more firmly established.

Description

As a result of this amendment, the completion dates for general service lighting currently prescribed in the Energy Efficiency Regulations would change to January 1, 2014, for 100/75 W bulbs and to December 31, 2014, for 60/40 W bulbs. During the timeframe between the approval of these revised dates and the new completion dates, strengthened communication activities would be launched to respond to the concerns expressed to date.

This communication outreach would focus on the messages that (1) the standards do not prescribe a particular technology; (2) there are a number of alternative technologies available now and more will be available in the future; and (3) CFLs are a good choice and do not represent a health risk to Canadians.

These activities, building on the infrastructure established by Natural Resources Canada (NRCan), would be developed and delivered in concert with other stakeholders, industry, governments and utilities who share common energy efficiency and environmental objectives.

In the meantime, Environment Canada is working on establishing regulations that would require manufacturers and importers of mercury-containing lamps to develop a program which would ensure that Canadians will be able to recycle mercury-containing lamps. The proposed regulations would target both mercury-containing lamps from the residential (CFLs) and commercial sectors. The proposed regulations would contain national recovery targets for recycling lamps and will ensure that the recycling is done in an environmentally sound manner. Environment Canada expects to publish the proposed regulations, in the Canada Gazette, Part I, by the end of 2011 and have the final regulations implemented by the end of 2012. Environment Canada has been actively consulting on the proposed regulations with manufacturers, retailers, recyclers, provinces, municipalities, other government departments and interested non-governmental organizations.

Regulatory and non-regulatory options considered

Since the completion dates are contained in the existing Regulations the only option is an amendment to the Regulations.

Benefits and costs

Energy and environmental impacts

The proposed effective dates for the policy to phase out inefficient general service lamps previously were

  • Effective date 100 and 75 W light bulb replacement: January 1, 2012;
  • Effective date for 40 and 60 W light bulb replacement: December 31, 2012.

Revised effective dates based on a two-year delay were used for the current analysis

  • Effective date for 100 and 75 W light bulb replacement: January 1, 2014;
  • Effective date for 40 and 60 W light bulb replacement: December 31, 2014.

The cumulative impacts during the 2012–2030 time period of the two-year delay would result in a decrease in energy savings of 88.1 PJ (going from 882.4 PJ to 794.2 PJ). As a result, by Natural Resources Canada’s assessment, the GHG emissions savings would be decreased by 12.88 Mt (from 128.5 Mt to 115.6 Mt). These effects would occur predominantly in the first years of policy implementation.

Additionally, by delaying the standard, the net benefit to Canadians would decrease by $303 million over the service life of general service lamps shipped by 2020 in real constant 2003 dollars (i.e. year 2003 prices).

This analysis is based on current general service lighting market trends and the incremental energy savings associated with the gradual replacement of inefficient light bulbs with efficient light bulbs.

Costs and benefits to industry

The effects on industry of the proposed change in completion dates for compliance with the standard are unknown at this time. The nature and extent of these impacts will be determined during the comment period. Some firms have been actively planning for the current dates and may be affected negatively. Other firms may welcome additional time.

North American harmonization

The delay in the completion dates will place Canada on an implementation schedule that is generally one and two years behind that of the United States, as follows: 100 W bulbs which are affected on January 1, 2012, in the United States, are proposed for January 1, 2014, in Canada; 75 W bulbs which are affected on January 1, 2013, in the United States are proposed for January 1, 2014, in Canada; and 60/40 W bulbs which are affected January 1, 2014, in the United States are proposed for December 31, 2014, in Canada.

Implementation of minimum energy performance standards for light bulbs in the United States and Canada

Coming into force date

United States (currently)

Canada (currently)

Canada (as proposed)

January 1, 2012

100 W

100 W / 75 W

 

December 31, 2012

 

60 W / 40 W

 

January 1, 2013

75 W

   

January 1, 2014

60 W / 40 W

 

100 W / 75 W

December 31, 2014

   

60 W / 40 W

British Columbia has standards currently in effect for 100/75 W bulbs since January 2011. The 60/40 W bulbs follow the existing federal schedule of December 31, 2012.

Consultation

All jurisdictions implementing minimum energy performance standards for light bulbs have experienced similar issues with respect to the suitability of alternatives to the conventional inefficient light bulb. Public and media commentary has been prevalent and all stakeholders are aware of the issues raised. This proposed amendment, once published for a 75-day comment period, will allow for both a focussed commentary on the issues raised and any negative effects on stakeholders of the proposed delay. It will also provide an opportunity to establish joint efforts with those concerned to deal with them.

Implementation, enforcement and service standards

Since the proposed amendment constitutes a relaxation of the current timetable, no additional enforcement efforts need be considered. Implementation of the delay will be accomplished through effective communication activities during the pre-publication and publication period.

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary strategic environmental assessment will be completed for publication.

Performance measurement and evaluation

A performance measurement and evaluation plan, as specified under the Cabinet Directive on Streamlining Regulation specific to this amendment, is being developed for publication.

Contacts

John Cockburn
Director
Equipment Division
Office of Energy Efficiency
Natural Resources Canada
1, Observatory Crescent, 2nd Floor
Ottawa, Ontario
K1A 0E4
Telephone: 613-996-4359
Fax: 613-947-5286
Email: equipment@nrcan.gc.ca

For information on Energy and environmental impacts, please write to

Dominic Demers
Economist
Demand Policy and Analysis Division
Office of Energy Efficiency
Natural Resources Canada
580, Booth Street, 18th Floor
Ottawa, Ontario
K1A 0E4
Email: equipment@nrcan.gc.ca

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to section 26 of the Energy Efficiency Act (see footnote a), that the Governor in Council, pursuant to sections 20 (see footnote b) and 25 of that Act, proposes to make the annexed Regulations Amending the Energy Efficiency Regulations.

Interested persons may make representations concerning the proposed Regulations within 75 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to John Cockburn, Director, Equipment Division, Office of Energy Efficiency, Department of Natural Resources, 930 Carling Avenue (CEF, Building 1, Observatory Crescent), 2nd Floor, Room 25, Ottawa, Ontario K1A 0Y3 (tel.: 613-996-4359; email: equipment@nrcan.gc.ca).

Ottawa, March 24, 2011

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE ENERGY EFFICIENCY REGULATIONS

AMENDMENTS

1. Subparagraphs 3(21)(c)(i) and (ii) of the Energy Efficiency Regulations (see footnote 1) are replaced by the following:

(i) it has a rated luminous flux of at least 1050 lm but not greater than 2600 lm and its manufacturing process is completed on or after January 1, 2014, or

(ii) it has a rated luminous flux of at least 250 lm but not greater than 1049 lm and its manufacturing process is completed on or after December 31, 2014.

2. The portion of items 136 to 139 of Part 1 of Schedule I to the Regulations in column IV is replaced by the following:

Item

Column IV Completion Period

136.

on or after January 1, 2014

137.

on or after December 31, 2014

138.

on or after January 1, 2014

139.

on or after December 31, 2014

COMING INTO FORCE

3. These Regulations come into force on December 31, 2011.

[16-1-o]

Footnote a
S.C. 1992, c. 36

Footnote b
S.C. 2009, c. 8, s. 5

Footnote 1
SOR/94-651