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Change Is Coming – Let’s Get Ready Together

The push to increase energy efficiency and reduce emissions continues to drive change in the HVAC industry. As a result, the government is instituting significant changes in energy efficiency criteria and ratings for both residential and commercial equipment.

Rather than viewing the regulatory changes as a problem to be solved, Rheem is embracing them as an opportunity to innovate new technologies to create an even better product line for contractors and homeowners.

To help you understand what’s changing, why, and how it’ll affect you, we’re pleased to bring you this HVAC KnowZone™ to act as a central hub, where you can easily access information as it becomes available. We will continue to make updates to the HVAC KnowZone as new information becomes available.

2023

What You Need to Know

For equipment manufactured after January 1, 2023, the minimum standards are changing, and a new test procedure is also being required. 

Learn More Watch Video

Information Library

nate

NATE-certification & the Importance of Properly Trained Contractors

When it comes to training and certifications, everyone connected to the HVAC industry benefits —contractors, technicians and even homeowners.

North American Technician Excellence (NATE) is the nation’s largest nonprofit certification organization for heating, ventilation, air conditioning and refrigeration (HVACR) technicians. Headquartered in Arlington, VA, NATE was developed by and has been supported by the industry for over 20 years.

Learn More

ENERGY STAR

ENERGY STAR® is the government-backed symbol for energy efficiency and provides simple, credible and unbiased information that consumers and businesses rely on to make well-informed decisions that help them save money and protect the environment.
Learn More

energystar_image

As the new NRCan Requirements Take Effect Jan. 1, 2023, Rheem will be ready with the all-new
Endeavor Line of Furnaces, Air Conditioners, Heat Pumps and Air Handlers. So even as
regulations get tougher, your job gets easier.

Endeavor Features & Benefits

  • Easy Fit: We raised efficiency without drastically increasing equipment
    size
  • Easy Installation: Bluetooth connectivity for easier, more accurate
    commissioning
  • Easy Service: Better accessibility and Bluetooth diagnostics
  • Easy Registration: Register warranties and claim rewards via mobile app
  • Quieter Operation: Brushless motors and acoustics-conscious design
  • More Choices: Industry-leading Heat Pump selection plus all-electric
    solutions
  • Smart Home Compatibility: EcoNet® technology available in more
    products
Keep checking back to see how the all-new Endeavor Line is ready to meet and
exceed the demands of tomorrow.

What’s Changing in 2023 & the new Requirements

In April 2021, Natural Resources Canada (NRCan) pre-published M1 Amendment 17 with requirements in the
Canada Gazette, updating energy efficiency and testing standards for central air conditioners and
central heat pumps used in residential. The expectation is that effective January 1 2023, newly
manufactured residential and light commercial equipment sold in Canada will be required to meet these
new M1 minimum efficiency standards.

Appendix M1: A New System of Measurement For equipment manufactured
after December 21, 2022, is not only a the minimum standards change, but a new test procedure will be
required. For decades, we’ve used the classic metrics of SEER, EER and HSPF. Going forward, you’ll hear
these metrics referred to as SEER2, EER2 and HSPF2.



Why the Metric Change?
The Natural Resources Canada test procedure has been updated to be
more representative of installations in today’s homes and will be used to determine product ratings.This
new system of measurement will apply to all single phase air conditioners and heat pumps <65k BTU/HR.

Traditionally, modifications to the Regulations would come into force six months
after final publication in the Canada Gazette, which is expected by December 2022. However, NRCan is
looking to shorten the 6-month delay between regulation publication and enforcement date, using
ministerial authority, in an attempt to close the gap between US Department of Energy (DOE) and
NRCan compliance dates. They are also considering postponing the 5◦F (-15C) requirement for
residential heat pumps to a later
date.

As provided by NRCAN on Amendment 17 Published April 2022
Description: The amendment would update energy efficiency and testing standards for central
air conditioners and central heat pumps primarily used in the residential sector to prevent upcoming
unnecessary regulatory differences between Canada and the United States. In addition, the Amendment
would make other minor changes to currently regulated products to address known issues with Canadian
requirements to ensure that the Energy Efficiency Regulations, 2016 align with the U.S. requirements
more clearly where already intended.

As provided by NRCAN on Amendment 17 Published April 2022
Executive Summary: as provided by the Canada Gazette. Issues: Canada’s building sector
(including homes and commercial and institutional buildings) is a significant contributor to
Canada’s total energy consumption and greenhouse gas emissions, especially for space and water
heating. Regulating the energy use of products is one of many tools available to the Government to
reduce energy consumption and support the goal of net-zero emissions by 2050. Nevertheless,
unnecessary regulatory differences across jurisdictions can hinder cross-border trade and investment
and ultimately impose a cost on citizens, businesses, and economies. In this context, regulatory
actions are necessary at this time to keep pace with changes that have been done in the United
States, and to put in place tools that will facilitate maintaining alignment in the future.

Description: This proposed amendment (the Amendment) would update energy efficiency and
testing standards for central air conditioners and central heat pumps primarily used in the
residential sector to prevent upcoming unnecessary regulatory differences between Canada and the
United States. In addition, the Amendment would make other minor changes to currently regulated
products to address known issues with Canadian requirements to ensure that the Energy Efficiency
Regulations, 2016 (the Regulations) align with the U.S. requirements more clearly where already
intended.

Finally, the Amendment would specify energy-using products in order for the Minister of Natural
Resources (the Minister) to be able to exercise the ministerial regulations authority, at his
discretion, to maintain harmonization between requirements set out in another jurisdiction.
Rationale: The Amendment would benefit Canadians by reducing energy consumption and resulting
greenhouse gas emissions of products used in homes. Homeowners will benefit from reduced energy
costs associated with the use of more efficient technologies. The Amendment would also avoid
misalignment with the United States Department of Energy and facilitate future efforts to maintain
alignment for products where a requirement (energy efficiency standards, testing standards, or
information) is aligned with that of another jurisdiction. Throughout the development of the
Amendment, stakeholders were provided several opportunities to comment on the changes being
considered. Overall, stakeholders are supportive of the Amendment and recognize its potential
benefit for consumers, utility programs, and climate change.

The present value of the net benefits of the Amendment is estimated to be about $1.68 billion by
2050, with total benefits exceeding total costs by a ratio of more than 5:1. By 2050, the present
value of benefits and costs from the Amendment is estimated to be about $2.06 billion and $374.27
million, respectively. On an annualized average basis, this equates to benefits and costs of about
$110 million and $20 million, respectively. The Amendment is estimated to result in a total annual
reduction of energy consumption in Canada of about 2.1 petajoules in 2050, resulting in total
greenhouse gas emission reductions of approximately 3.9 megatonnes of carbon dioxide equivalent by
2050. The quantified benefits have been calculated as the sum of the energy savings, the benefits of
reductions in greenhouse gas emissions over the service life of products shipped by 2050, and the
cost savings associated with preventing unnecessary regulatory differences. The quantified costs
include incremental technology costs to meet the more stringent standards, and administrative and
compliance costs for businesses.

If Canada does not amend the Regulations, its requirements would become misaligned with key testing
standards from the United States Department of Energy, which could impact cross-border trade, would
require companies to test differently for Canada, and ultimately increase costs for citizens,
businesses and economies. In addition, in the absence of a regulatory approach, a market for
low-efficiency products would continue. For more information about Amendment 17, you can read the
pre-publication from the Gazette here.

On the Horizon for 2025 – Refrigerant Change

In 2020, a bipartisan senate bill known as the American Innovation and Manufacturing (AIM) Act was
enacted into law. It authorizes a 15-year phasedown of hydrofluorocarbons (HFCs) across a variety of
applications, including HVAC. The bill gives the U.S. EPA the authority to prescribe the HFC phase
down, with rulemaking underway.

What’s Currently Happening It is
expected that the EPA will soon act, setting a 750 GWP limit for air conditioning in 2025. That will
mean that R-410A, with a GWP of 2,088, will no longer be able to be used in new equipment
manufactured after the compliance date—which has yet to be determined. It is estimated, however,
that the transition to lower GWP refrigerants will begin in 2025.

What Are the Most Common
Alternatives?
The most common low-GWP alternatives to R-410A are classified by ASHRAE
as mildly flammable, or A2L. Due to their mildly flammable characteristics, A2L refrigerants will
require updates to standards and building codes to allow for their safe installation. As a leading
influencer on regulatory issues, Rheem is actively involved in the discussions and will continually
keep you informed and prepared.

ENERGYGUIDE LABELING
101 & WHAT TO EXPECT
FOR 2023

ENERGYGUIDE 101

The FTC (Federal Trade Commission) first issued an Energy Labeling Rule in 1979. The Rule
requires manufacturers of major home appliances to attach yellow EnergyGuide Labels to products
and post label information to supporting brochures and websites.

Consumers should use EnergyGuide Labels to comparison shop for the best in energy-efficient
solutions.

2023 EnergyGuide Label Examples
Split System Air Conditioner, Cooling Only, Northern States

Split System Air Conditioner,
Cooling Only, Northern States

Split System Heat Pump, Cooling & Heating, All States

Split System Heat Pump,
Cooling & Heating, All States

EnergyGuide Labels are
required to list:
  • Estimated annual energy cost
  • Product’s energy consumption / energy
    efficiency rating as determined by the Department of Energy (DOE) test procedures
  • A range that shows the highest and
    lowest energy costs or efficiency ratings

WHAT
IS CHANGING?
Effective January 1, 2023, new DOE
efficiency descriptors (SEER2, HSPF2) and updated standard energy efficiency ranges (shown in chart)
will be required on packaged and split air conditioner and heat pump EnergyGuide labels. The new
EnergyGuide label, which will begin appearing on 2023-compliant products during 2022, will show the
SEER2 and HSPF2 efficiency rating specific to your air conditioner and heat pump. The rating, which
for a given model can vary depending on the coil installed with the unit, represents the least
efficient combination up to the highest efficiency when matched with a furnace or air handler.

ENERGY STAR

ENERGY STAR® is the government-backed symbol for energy efficiency and
provides simple, credible and unbiased information that consumers and businesses rely on to make
well-informed decisions that help them save money and protect the environment. The ENERGY STAR logo
appears on all qualified products that meet specific standards for energy efficiency. The U.S. EPA
ensures that each product that earns the label is independently certified. 2023
Changes
For 2023, as the test procedures are changing, so too are the qualifications
for a product to be ENERGY STAR certified. In fact, an air conditioner or heat pump that earned the
ENERGY STAR symbol before may no longer qualify. For example, the minimum efficiency for an ENERGY
STAR-certified air conditioner in 2021 was 15 SEER. In 2023, that number will be XX.X SEER2, which
is closer to 16 SEER in the old rating system.

NATE-certification & the Importance of Properly Trained Contractors

When it comes to training and certifications, everyone connected to the HVAC industry benefits
—contractors, technicians and even homeowners. North American Technician Excellence (NATE) is the
nation’s largest nonprofit certification organization for heating, ventilation, air conditioning and
refrigeration (HVACR) technicians. Headquartered in Arlington, VA, NATE was developed by and has
been supported by the industry for over 20 years.

What Are the Benefits? NATE-certified contractors and technicians
receive a high ROI. They’re considered valuable to employers and preferred among customers. So
NATE-certified contractors and technicians are sought out. As such, their salaries are higher than
their non-certified counterparts. Homeowners using NATE-certified contractors and technicians
receive:

  • • Higher satisfaction – Thanks to fast service and fewer callbacks and warranty returns
  • • Increased confidence
  • • Lower utility bills – Because their systems are operating more efficiently
  • • Peace of mind – From knowing that their systems are in good hands

What Is the NATE Program & Who Is It For? Developed by a committee of industry
experts, the NATE program is a series of exams that result in either certificates or full
certifications and is designed for contractors and technicians of all experience levels. The
entry-level tests, Ready-to-Work and HVAC Support are intended for those with less than 12 months of
experience. Those who pass the tests earn a certificate, that identifies them as someone
knowledgeable and trained in the field. More rigorous exams are required to receive a full NATE
certification. Who is Eligible for Full NATE Certification & What Does It Entail?
NATE certification is recommended for contractors and technicians with two or more years of
experience. There are two certification testing pathways available: the Certified HVAC Professional
(CHP-5) pathway, a series of five exams, or the Core and Specialty exam pathway, a series of two
exams. For more information on either of these pathways, visit the NATE website. Are There Training Courses Available to
Help with Exam Preparation?
NATE has partnered with lnterPlay Learning to launch NATE Training Academy, which allows contractors and technicians to train for
NATE certification exams online when convenient for them. The online training includes 3D and VR
simulations that mimic in-field experience. Contractors and technicians can start prepping for
NATE’s Certified HVAC Professional exam today. Additionally, this fall, training will be available
for NATE’s Low-GWP refrigeration certification.