Canadians to pay more for California-style heating and cooling under new appliance rules

Canadians are set to pay an average of $276 million more each year to heat and cool their homes after Natural Resources Canada adopted stricter California-style efficiency standards for household appliances.

Blacklock's Reporter says the added costs, which federal officials say will be passed on to consumers, are part of the Liberals' effort to hit its 2050 net-zero emissions target.

The new rules, introduced under the Energy Efficiency Act, apply to a wide range of essential appliances and fixtures, including gas furnaces, heat pumps, air conditioners, water heaters, light fixtures, and even faucets and showerheads.

Enforcement will be phased in gradually, beginning this October and continuing through 2029.

“Regulatory actions are necessary at this time for some energy using products to keep pace with changes that have taken place within Canada and in the United States,” the department explained in a Regulatory Impact Analysis Statement.

While the department argues the new standards are necessary for climate progress, it acknowledges they will come at a cost.

“It is assumed the incremental costs for more efficient technology including product development and production as well as for compliance and administration are passed on to consumers,” the notice states.

Low-income Canadians could feel the squeeze most, especially when it comes to purchasing high-efficiency gas heaters and similar appliances.

“It is possible the amendments would increase purchase prices of more efficient products in which case low-income households could have more difficulty,” the department admitted.

The government’s rationale for adopting California’s stringent rules lies in the state’s market size and influence.

“Given that California is the most populous U.S. state, manufacturers serving the North American market cannot ignore California’s market size and therefore comply with the state’s standards,” the notice reads.

“Aligning with California standards will ensure continued product availability in Canada.”

Despite the sweeping changes, no mention was made of potential tariff impacts on imported appliances, which are mostly manufactured outside of Canada.

“Only a few Canadian-based manufacturers have been identified by the market studies used for these amendments to be producing some of the products,” the statement noted.

The move, according to Minister Jonathan Wilkinson’s department, is part of the federal government’s broader climate strategy. Officials argue that without these changes, Canada would miss a critical opportunity to cut energy use and emissions in the residential and industrial sectors, which together account for a significant share of national output.

However, the notice did not include any specific Canadian research into how the California-style rules would affect consumers in colder, sub-Arctic climates where appliance performance and durability are especially critical.

The Energy Efficiency Act, originally passed by Parliament in 1992, allows cabinet to regulate the sale of products based on energy standards.