Compliance using the Free Trade and Labour Mobility in Canada Act

For over 30 years, NRCan, industry, and provincial partners have worked to harmonize the energy efficiency regulatory regime in Canada. With the passing of the Free Trade and Labour Mobility in Canada Act (“FTLMCA”), that harmonization is gaining further ground.

Goods subject to the FTLMCA

Currently, s.4(1)(b) of the Energy Efficiency Regulations, 2016 allows regulatees to submit provincial compliance as federal compliance, but only where the provincial requirement is equivalent or better. Now, the FTLMCA will allow provincial compliance to be accepted as federal compliance for any comparable requirements without restriction.

The FTLMCA will only impact products produced domestically and shipped interprovincially. Products imported to Canada would still be required to comply with the federal requirements without the ability to use the compliance option provided under the FTLMCA and its regulations.

FTLMCA will apply when an energy-using product satisfies all of the following:

1. manufactured or assembled domestically
2. shipped interprovincially for sale
3. subject to both a federal and a provincial energy efficiency standard.
4. produced, used, or distributed in accordance with a comparable provincial standard
5. the province/territory it was manufactured in or the province/territory it is being shipped to has a comparable provincial standard

NRCan will accept certified compliance with an applicable provincial standard as compliance with the federal standard.

For example, if a regulated product is produced in Ontario and shipped for sale across Canada, it would have to certify compliance with the federal requirement in addition to each applicable provincial requirement. The FTLMCA will ensure that the product only has to comply with each applicable provincial requirement.

Regulatees with FTLMCA-applicable products will be free to choose whether or not to utilize the compliance option provided by the FTLMCA. All regulatees will continue to have the option of complying with the terms of the Energy Efficiency Regulations, 2016 (“Regulations”) through the Compliance Regulatory Energy Efficiency Database (CREED). Regulatees taking advantage of the FTLMCA provisions (i.e. using compliance with a provincial standard as compliance with federal obligations), will be required to report to NRCan before shipping between provinces/territories.

Verification mark and labelling requirements

Products using the FTLMCA compliance pathway do so only in respect of the applicable energy efficiency standard. They must still adhere to federal labelling requirements outlined in the Energy Efficiency Act and Regulations, namely:

• the requirement at section 4(1)(b) of the Act that the product be labelled in accordance with the Regulations (such as EnerGuide labels, general service lamp labels, walk-in nameplates) and,
• the requirement at section 4(1) of the Regulations that the product be labelled with an energy efficiency verification mark.

It is important to note that compliance with a provincial requirement will not allow for the use of the federal Energy Efficiency Verification (EEV) mark. Products using the FTLMCA compliance pathway must not bear the federal EEV mark, rather they will require a provincial verification mark in accordance with section 4(1)(b) of the Regulations.

FTLMCA reporting requirements

The process for submitting this certified provincial compliance authorized by the FTLMCA will not be facilitated through the CREED. Rather regulatees seeking to submit certified compliance as authorized by the FTLMCA will be required to deliver the necessary compliance documents directly to NRCan via email.

Regulatees wanting to take advantage of the additional compliance pathway provided by the FTLMCA must:

• Report regulated models via an email addressed to complianceops-opsconformite@nrcan-rncan.gc.ca. This email must have the subject line “FTLMCA Submission”.
• Attach the completed FTMLCA form containing the information set out below.
• Attach the completed FTLMCA attestation.
• Attach the required documents demonstrating compliance with provincial standards (see requirements below)

The form must contain the following information:

• contact information for the regulatee
• product type
• manufacturer name
• manufacturer location
• brand name
• model number
• provinces/territories that the product will be shipped to
• name and contact information of certification organization or provincial authority issuing supporting documentation
• energy efficiency number (if any)

Regulatees wanting to take advantage of the additional compliance pathway provided by the FTLMCA must also submit one of two documents set out below.

1. A certificate of conformity or other similar document that states the subject energy using product (i.e. specifying the brand and model) meets the applicable provincial standard(s). This document must be certified by a Standards Council of Canada-accredited certification body.
2. A document that states the subject energy-using product (a) meets the applicable provincial standard(s) or (b) is otherwise an authorization to use the applicable provincial verification mark. This document must be either received from or certified by the provincial ministry or provincial agency that administers the subject provincial regulations.

The timing of a regulatee’s shipments will matter. The compliance option provided by the FTLMCA will only apply on and after January 1, 2026. Interprovincial shipments of domestically produced products must occur on or after that date if the regulatee will seek to use the compliance option under the FTLMCA.

Key Principle – Geographic Integrity

The applicable provincial regime is determined by the geographic location where the product is manufactured/assembled or where the product is shipped to for sale.

Refer to the Guide to Canada's Energy Efficiency Regulations webpage for further details on NRCan’s Energy Efficiency Regulations. If you have any questions, contact Compliance Operations at complianceops-opsconformite@nrcan-rncan.gc.ca.