Commercial gas and oil-fired furnaces

May 2024

Technical bulletin on amending the standards

Webinar – Thursday, June 13, 2024, 1:00-2:00 pm EDT

In April 2024, the Office of Energy Efficiency at Natural Resources Canada (NRCan) updated its Forward Regulatory Plan which identifies its intention to amend Canada’s Energy Efficiency Regulations (the Regulations) to harmonize energy efficiency and testing standards for commercial gas and oil-fired furnaces with the United States, which imply expending the scope of oil-fired furnaces to include commercial models.

This technical bulletin has been released to initiate the consultation process and to collect stakeholder views on the requirements being considered for commercial furnaces.

Input received during this stage of the process will inform the development of the next amendments considered. In addition, NRCan will undertake a cost-benefit analysis using the best-available Canadian market data to assess the economic and environmental impacts of the new standards and to ensure Canadian consumers and businesses benefit from their implementation.

The Government of Canada intends to pre-publish a regulatory proposal in the Canada Gazette, Part I, in 2025.

Background

In Canada, commercial gas furnaces manufactured as of February 3, 1995, are subject to the Regulations. Commercial oil-fired furnaces are not currently regulated.

The efficiency standards for commercial furnaces save energy and reduce overall costs for Canadians. The efficiency standards also reduce energy-related greenhouse gas emissions and encourage manufacturers to adopt efficient product designs.

In 2021, NRCan and the United States Department of Energy (U.S. DOE) signed the Memorandum of Understanding Between the Department of Natural Resources of Canada and the Department of Energy of the United States of America Concerning Cooperation on Energy, which acknowledges that both countries will collaborate on new and updated energy efficiency and testing standards where feasible and appropriate.

On December 23, 2022, the U.S. DOE published 2022-12-23 Energy Conservation Program: Energy Conservation Standards for Commercial Warm Air Furnaces; Final determination, which strengthened the energy efficiency standards for commercial furnaces.

On June 2, 2023, the U.S. DOE published 2023-06-02 Energy Conservation Program: Test Procedure for Commercial Warm Air Furnaces; Final rule, which updated the testing standard for commercial furnaces.

NRCan is considering amending the Regulations to harmonize with the energy efficiency and testing standards of the U.S. DOE for commercial gas furnaces and commercial oil-fired furnaces.

Product description

Gas furnace is defined in the regulations as an automatic operating gas-fired central forced air furnace that uses propane or natural gas and has an input rate of not more than 117.23 kW (400,000 Btu/h). It does not include a furnace for a park model trailer or a recreational vehicle.

A commercial gas furnace is a gas furnace with a rated maximum input rate of greater than 65.92 kW (225,000 Btu/hr).

Oil-fired furnace is defined in the regulations as a warm-air furnace, other than a furnace for a mobile home or for a recreational vehicle, that has an input rate of not more than 65.92 kW (225,000 Btu/h) and that is either

• (a) exclusively oil-fired; or
• (b) capable of being fired, at the choice of the user, by either oil or another fuel

The definition of oil-fired furnaces would be expanded to include commercial models, that is, those with a rated maximum input rate of greater than 65.92 kW (225,000 Btu/hr).

The updated definition for oil-fired furnace would harmonize with the United States.

Testing standard

NRCan is considering incorporating by reference an NRCan technical standards document (as amended from time to time) that would reproduce the following testing standard:

• Appendix A to Subpart D of Part 431 to the U.S. Code of Federal Regulations, entitled Uniform Test Method for Measurement of the Energy Efficiency of Commercial Warm Air Furnaces (Thermal Efficiency)

Energy efficiency standard

NRCan is considering incorporating by reference an NRCan technical standards document (as amended from time to time) that would reproduce the following energy efficiency standard:

Energy efficiency standard being considered for commercial furnaces
Equipment Type	Minimum Thermal Efficiency
Commercial Gas Furnace	81%
Commercial Oil-Fired Furnace	82%

Descriptive Text

The Table titled “Energy efficiency standard being considered for commercial furnaces” has two columns.

The first column is for Equipment type and the second is for the minimum thermal efficiency.

The rows of the table are as follows:
Equipment Type: Commercial Gas Furnace
Minimum Thermal Efficiency: 81%

Equipment Type: Commercial Oil-Fired Furnace
Minimum Thermal Efficiency: 82%

This concludes the table.

These energy efficiency standards are based on the U.S. Code of Federal Regulations: 10 CFR 431.77

Important dates

These modifications to the Regulations would come into force six months after the date of publication in the Canada Gazette, Part II.

NRCan is considering applying the new standards to commercial furnaces manufactured on or after January 1, 2023.

However, any dealers could voluntarily comply with these modifications upon their publication in the Canada Gazette, Part II.

Regulatory pathway

NRCan is considering amending the Regulations through Governor in Council amendment.

The considered changes would be pre-published in the Canada Gazette, Part I, followed by a public comment period. The exact date for final publication in the Canada Gazette, Part II will depend on the number and nature of comments received during the public comment period. Final publications are typically within a year of their initial public comment period. These changes and the timing of publication are subject to decision-making authorities under the Energy Efficiency Act.

Labelling requirements

NRCan is not considering labelling requirements for commercial furnaces.

Verification requirements

NRCan is not considering any changes for the energy efficiency verification requirements for commercial furnaces.

These products would continue to carry a third-party verification mark indicating that the product meets the energy efficiency standards and that information to be reported has been verified. Verification mark would be a new requirement for commercial oil-fired furnaces.

The verification mark is the mark of a Standards Council of Canada accredited certification body that operates an energy efficiency certification program for the product.

Reporting requirements

Energy efficiency report

NRCan is not considering any changes to the energy efficiency report requirements for commercial gas furnaces.

The energy efficiency report for commercial oil-fired furnaces would include the following information:

• Name of product: Gas-fired or Oil-Fired Commercial Furnace
• Input Rate in kW (Btu/h)
• Thermal Efficiency
• Brand name
• Model number
• Name of the manufacturer
• Name of the certification body whose verification mark would be affixed to the product

Import report

There is no change to import reporting for commercial gas furnaces.

A dealer who imports commercial oil-fired furnaces into Canada would include the following information on the customs release document:

• Name of product
• Model number
• Brand name
• Address of the dealer importing the product
• Purpose for which the product is being imported (i.e., for sale or lease in Canada without modification; for sale or lease in Canada after modification to comply with energy efficiency standards; or for use as a component in a product being exported from Canada)

Comments invited

The purpose of this bulletin is to provide stakeholders with the technical detail required to comment on the requirements under consideration for Commercial Furnaces.

It is important to NRCan that we engage the public and stakeholders on amendments to the Regulations. If you are aware of any manufacturer, importer, retailer, utility provider, small business, consumer group, organization, or representative of a specific group(s) of the population (including, but not limited to, women, 2SLGBTQQIA+ people, persons with disabilities, visible minorities, socio-economic status, residency, housing status, etc.), Indigenous peoples/communities, and/or other person or group that may be interested in participating in the amendment discussion and/or may be negatively impacted by this proposal, please forward them or their representative this bulletin. Please click here to register to our mailing list which is used to notify stakeholders of upcoming amendments, technical bulletins, webinar registrations, official publication in the Canada Gazette, etc.

Additional information on Canada’s Energy Efficiency Regulations including a current list of Standards Council of Canada accredited certification bodies can be found on the Department’s website.

We welcome your comments by September 13, 2024. All correspondence should be forwarded to:

Natural Resources Canada
Office of Energy Efficiency
580 Booth Street
Ottawa, ON, K1A 0E4

E-mail: EEregulations-reglementEE@nrcan-rncan.gc.ca

Email subject heading to be:
Bulletin – Commercial gas and oil-fired furnaces – Générateurs d’air chaud à gaz et au mazout commerciaux – May 2024 mai