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Smarter energy labels, tougher enforcement

An Act to amend the Energy Efficiency Act

Summary

  • Modernizes the Energy Efficiency Act to promote energy efficiency, responsible energy use, and a transition to a low‑carbon economy, including collaboration with Indigenous peoples, provinces, and international partners.
  • Expands compliance powers: bans false or misleading efficiency claims, allows the Minister to require products for testing, compel data and access to testing software or digital models, seize non‑compliant products, and require six‑year record retention.
  • Creates regulatory sandboxes and ministerial exemptions (up to six years) to test innovative products or regulatory approaches, enables incorporation by reference of technical standards, and accelerates harmonization with U.S., Mexico, and provincial standards.
  • Establishes an administrative monetary penalties regime with compliance agreements, public reporting to Parliament on enforcement and standard comparisons, publication of violators’ names, and cost recovery for processing exemptions.

Builder Assessment

Vote Yes

Overall, the bill modernizes Canada's energy efficiency framework in ways that can reduce energy costs, raise competitiveness, and catalyze innovation and trade. Some provisions risk added compliance burden and weaker oversight over ministerial powers, but targeted adjustments can protect businesses while maintaining safety and accelerating growth.

  • Builders would add SME de minimis thresholds, phased‑in reporting/testing, and low‑risk self‑certification, and right‑size the six‑year retention period where risk is low.
  • Builders would restore a limited due‑diligence defence for administrative penalties when documented compliance systems exist and ensure publication of names only after final determinations and appeal windows.
  • Builders would limit compelled access to proprietary software by preferring third‑party audits or escrowed access, and codify strong IP/privacy protections with equivalent safeguards in any foreign information‑sharing agreements.
  • Builders would apply SIA‑like transparency and SFA‑like fee governance to exemption orders and cost recovery, with parliamentary notification and dashboards.
  • Builders would commit to rapid recognition and harmonization with leading North American efficiency standards and publish a schedule to reduce duplication and speed export readiness.

Question Period Cards

What specific de minimis thresholds, SME carve‑outs, and phased timelines will the minister implement to prevent the new testing, reporting, and six‑year record‑keeping powers from overburdening small importers and retailers?

Why are exemption orders and cost‑recovery fees carved out from the Statutory Instruments Act and the Service Fees Act, and what concrete parliamentary oversight and fee caps will be in place to protect businesses and consumers?

Given the authority to compel access to proprietary software and digital modelling tools and to share information with foreign governments, what binding safeguards will protect intellectual property, personal data, and commercially sensitive information, and will names be published only after a final determination?

Principles Analysis

Canada should aim to be the world's most prosperous country.

Efficiency lowers energy costs, improves product performance, and supports innovation and trade, all of which can raise living standards and competitiveness.

Promote economic freedom, ambition, and breaking from bureaucratic inertia (reduce red tape).

New testing, reporting, seizure, and record‑keeping powers add burdens, but sandboxes, harmonization, incorporation by reference, and flexible exemptions can streamline approvals and reduce duplication.

Drive national productivity and global competitiveness.

Higher efficiency and anti‑greenwashing improve market integrity and lower energy intensity; alignment with U.S./Mexico standards supports scale and competitiveness.

Grow exports of Canadian products and resources.

Harmonization and recognition of technical standards can ease cross‑border market access for efficient products, supporting export growth.

Encourage investment, innovation, and resource development.

Regulatory sandboxes and exemptions explicitly aim to stimulate innovation and economic growth in energy‑using products and emerging energy sources.

Deliver better public services at lower cost (government efficiency).

Shifting to AMPs and compliance agreements, dynamic incorporation of standards, and periodic reporting can improve enforcement efficiency, though SIA/SFA carve‑outs reduce oversight and could be refined.

Reform taxes to incentivize work, risk-taking, and innovation.

No tax measures are included.

Focus on large-scale prosperity, not incrementalism.

The reforms are significant but administrative; impacts build over time rather than delivering an immediate, economy‑wide step‑change.

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PartySenate
StatusAt second reading in the Senate
Last updatedN/A
TopicsClimate and Environment, Technology and Innovation, Trade and Commerce
Parliament45