Government and Regulatory Update
This week’s update highlights expanded tariff support measures, new labour mobility rules and broader access to energy-efficiency and heat-pump programs.
Federal — tariff supports expanded
Canada announced on 28 August 2026 a federal tariff-response package that includes an additional $1.5 billion for the Regional Tariff Response Initiative, delivered through regional development agencies. The Atlantic Canada Opportunities Agency has already indicated that eligible SMEs could receive non-repayable contributions of up to $3 million, combining up to $1 million for eligible investment projects and up to $2 million for liquidity support. Detailed enhanced-program rules are expected September 8. Read more
Federal — ‘Responsible Data Center Development Principles’ launched
On September 3, Canada launched Responsible Data Centre Development Principles – a policy framework, not a binding regulation. Among other expectations, projects should avoid compromising grid reliability, contribute demand flexibility where necessary, minimize freshwater use and prioritize technologies including closed-loop/high-efficiency water systems and waste-heat recovery. Workforce development and Canadian supply-chain participation are also identified as strategic benefits. Data centres could become a significant commercial HVAC/R market and policy file encompassing cooling architecture, heat rejection, refrigerants, controls, heat recovery, water efficiency, commissioning and demand response. Read more
Canada-wide — CFTA labour-mobility changes create 30-day recognition standard
On August 27, federal, provincial and territorial governments ratified CFTA changes requiring regulators to make and communicate certification decisions within 30 days of receiving a complete application and generally preventing materially additional training, exams or experience requirements for workers already certified for the same occupation elsewhere in Canada. This could reduce barriers for HVAC/R trades moving between provinces, including questions around how limited-scope credentials such as Ontario’s 313D are recognized. Read more
Ontario — Data Center Consultation launched
Ontario's consultation on its proposed Economic and Strategic Assessment Framework for New Data Centres closes September 12. The province is considering requiring large new data centres to obtain government approval before connecting to the grid and creating a separate electricity rate class for large new data centres. Ontario's proposed assessment expressly considers local labour participation, training and apprenticeships, environmental impacts and modern technologies such as closed-loop cooling. Read more
Ontario — Expanded Energy Management consultations launched
On September 16th, IESO will present proposed enhancements to the Expanded Energy Management program aimed at improving organizational energy-management capability and program outcomes. Feedback will inform refinements before an anticipated 2028 launch. HRAI members providing commercial/institutional HVAC optimization, building automation, controls, commissioning and ongoing energy-management services could benefit directly from understanding and shaping how the redesigned program defines eligible services and delivery partners. Read more
Ontario — Protect Ontario Financing Program expanded to mechanical equipment
On August 24, Ontario expanded eligibility for its $1-billion Protect Ontario Financing Program to include businesses in mechanical equipment and electrical machinery, equipment, appliances and components that are experiencing tariff-related working-capital pressures. HVAC/R manufacturers and component suppliers may now be eligible, subject to the program’s revenue, employment, operating-history and liquidity requirements. Read more
PEI — New tariff support package open
On August 28, PEI announced new tariff-relief measures. The PEI Tariff Impact Relief Fund opened September 3 and provides conditionally non-repayable support covering up to 50% of eligible costs, to a maximum of $50,000. Eligible activities can include market and supplier diversification, certification/product modification, technology, automation and productivity-enhancing equipment. Applications are assessed first come, first served, funding is subject to availability, and an application must be submitted before the business makes any financial or legal commitment to the project. Priority is given to businesses directly affected by U.S. Section 338 tariffs and related Canadian counter-tariffs. Read more
British Columbia — Pacific Northern Gas customers added to energy-assistance program
On August 28, BC Hydro expanded its Energy Conservation Assistance Program to eligible Pacific Northern Gas customers, providing free home energy assessments and upgrades that may include heat pumps, ventilation improvements and hybrid/dual-fuel systems. Program delivery is currently handled through BC Hydro and pre-selected service partners and contractors. Read more
British Columbia — FortisBC receives additional $86 million for programs
On September 1, FortisBC announced that the B.C. Utilities Commission approved an additional $86 million for FortisBC Energy Inc.'s gas conservation and efficiency initiatives through 2027. The utility is now reviewing its plans and deciding how the additional funding will be allocated across individual programs, including residential and income-qualified offerings. Combined anticipated gas and electric DSM spending for 2024–27 now exceeds $780 million, up from $694.8 million originally approved. Read more
We want to hear from you. Please send your comments, notes, questions or feedback on any of these issues to Perry Chao, Director of Regulatory Affairs (pchao@hrai.ca); Abhi Kantamneni, Director of Government Relations (akantamneni@hrai.ca); Martin Luymes, Vice-President, Government and Stakeholder Relations (mluymes@hrai.ca)
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