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Energy and Resource Efficiency
Energy and Resource Efficiency in government contracting pertains to the effective use of energy and materials throughout the life cycle of a product or service. It emphasizes sustainable practices in procurement to reduce environmental impact and is often integrated into procurement requirements.
When you're evaluating bids or drafting technical requirements, energy and resource efficiency can make the difference between a compliant procurement and one that aligns with Canada's environmental commitments. This isn't just about choosing ENERGY STAR appliances. It's about integrating efficiency considerations across the entire life cycle of what you're buying—from manufacturing through disposal.
How It Works
Start with the Supply Manual's Chapter 10 on Green Procurement, which requires federal buyers to consider environmental performance throughout a product's life cycle. In practice, this means you're assessing energy consumption during use, but also resource extraction, manufacturing impacts, transportation emissions, and end-of-life disposal or recycling potential.
Here's where it gets specific: Canada's Energy Efficiency Regulations set mandatory minimums for regulated products. If you're procuring anything from HVAC systems to traffic signal modules, those items must meet federal standards to be legally imported or shipped interprovincially for sale. The Energy Efficiency Regulations (SOR/2016-311) lay out these standards by product category. Natural Resources Canada updates these requirements regularly. Take Amendment 17 from 2022—it targets central air conditioners and heat pumps with new standards expected to reduce Canada's energy consumption by 2.1 petajoules annually by 2050, alongside cutting 3.9 megatonnes of GHG emissions.
You'll often see ENERGY STAR certifications referenced in technical specifications. This program identifies products performing in the top 15-30% for energy efficiency within their category. When Treasury Board or PSPC issue standing offers, energy efficiency criteria frequently appear as either mandatory requirements or rated requirements that give vendors competitive advantages. Major departments like DND and SSC have procurement volumes where even modest efficiency gains compound into significant cost and environmental savings.
Key Considerations
Life-cycle costing changes the math: The lowest initial price rarely wins when you factor in operating costs over 10-15 years. Energy-efficient options often pay for themselves through reduced utility costs, which matters especially for capital assets.
Compliance isn't optional: Products that don't meet Energy Efficiency Act standards can't legally be sold for commercial use in Canada. Period. Verify that vendors can demonstrate compliance before you award a contract.
Provincial variations exist: While federal regulations set the baseline, some provinces have additional requirements. British Columbia and Quebec have particularly stringent building energy codes that affect construction procurements.
Documentation requirements add complexity: Expect to request energy consumption data, test reports, and certification documents. Build evaluation time into your procurement schedule to verify these submissions properly.
Related Terms
Green Procurement, Environmental Certification, Life-Cycle Costing
Sources
The procurement officers who integrate these considerations early—during market research and requirement development—avoid the headaches of non-compliant bids or evaluation challenges later. Start with Chapter 10 of the Supply Manual and work forward from there.
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