PROPOSAL #1: CLARIFY UTILIZATION EQUIPMENT & INCLUDE DWELLING UNITS 1.1. PROPOSAL The proposal, if passed, is intended to: 1. Clarify the meaning of utilization equipment by adding the CEC definition 1; 2. Expand the location within which the replacement of utilization equipment can be installed without the need for an Application for inspection; and 3. Given the expanded locations, specify specific types of installations to which the additional expansion would not apply. Specifically, it would: 1. Reinsert the definition of utilization equipment currently found in the CEC to clarify the meaning of utilization equipment. It was deleted in error in the last OESC cycle. 2. Expand the application of Rule 2-005 from an owner occupied single dwelling 2 to an owner occupied dwelling unit 3; thereby expanding the circumstances when an application is not required. 3. Clarify that the expanded application of Rule 2-005 would not be permitted in installations related to Section 24 4, Section 38 5, Section 50 6, Section 68 7, and Section 84 8 of the OESC. The circumstances previously stipulated within Rule 2-005 would not be altered, including the requirement that: a. the equipment only be rated at not more than 30A and 120 volts; b. the equipment be of the same rating as the one being replaced; c. the wiring feeding the equipment be existing and cannot be altered; and d. the electrical work be performed by a Licensed Electrical Contractor. 1 The definition of utilization equipment would be the current CEC definition, that is, Utilization equipment means, equipment that utilizes electrical energy for mechanical, chemical, heating, lighting, or similar useful purposes. 2 The OESC defines a single dwelling as a dwelling unit consisting of a detached house, one unit of row housing, or one unit of a semi-detached, duplex, triplex or quadruplex house. 3 The OESC defines a dwelling unit as one or more rooms for the use of one or more persons as a housekeeping unit with cooking, eating, living, and sleeping facilities. 4 Section 24 relates to patient care areas. 5 Section 38 relates to elevators, dumbwaiters, material lifts, escalators, moving walks, lifts for persons with physical disabilities, and similar equipment. 6 Section 50 relates to solar photovoltaic systems. 7 Section 68 relates to pools, tubs, and spas. 8 Section 84 relates to the interconnection of electric power production sources. Rule 2-005 An application for inspection is not required: in an owner-occupied single dwelling for the installation of replacement utilization equipment (such as fuse holders, receptacles transformers for extra-low voltage circuits or equipment in extra low voltage circuits) or receptacles if the equipment being installed: (i) is installed in an owner-occupied single dwelling unit (ii) is installed by an electrical contractor licensed in accordance with Regulation 570/05; (iii) is installed in a branch circuit having a rating not exceeding 30A, and 130 volts; (iv) is interchangeable with the equipment being replaced in function, electrical rating, size, and weight without having to change any part of the branch circuit; (v) is installed in the same location as the equipment being replaced; (vi) is approved in accordance with Rule 2-024; (vii) is not electrical equipment forming part of an electrical installation to which Section 24, 38, 50, 64, 68 and 84 of this Code applies; and (viii) does not involve the repair, modification or replacement of a service box or a panel board or the replacement of an electro-mechanical over-current device in a service box or panel board. Definitions: Utilization equipment – see definition or Electrical Equipment Utilization Equipment – equipment that utilizes electrical energy for mechanical, chemical, heating, lighting or similar useful purposes 1.2. BACKGROUND AND RATIONALE Rule 2-005 was initially introduced in 2007 through an amendment to the 2002 OESC. The introduction of Rule 2-005 was intended to limit the scope of work that did not require an Application for Inspection (permit) to equipment rated at no more than 130 volts and 30 A. The Rule limited the type of equipment that could be replaced to utilization equipment as defined in the CEC; typically, it included switches, receptacles, light fixtures and other 120 volt electrical utilization equipment. In 2006, however, with the passage of legislative amendments to the Electricity Act, 1998 a Director’s Order was issued which unintentionally deleted the definition of utilization equipment from the OESC. As a result, since the introduction of the Director’s Order and the deletion of the definition, there has been confusion among industry and the regulated community regarding what exactly was exempted. The use of the term utilization equipment without an appropriate definition was confusing and led to a lack of consistent understanding among the regulated community. To eliminate confusion and ensure the regulated community is clear regarding the exemption, this proposal suggests that the definition of utilization equipment, as defined in the CEC be re-inserted into the OESC. The clarification is intended to clarify the type of equipment captured by the exemption and is intended to ensure a common understanding for industry and reduce unnecessary burden for not only contractors, but designers, facility owners and their customers as well. The definition would also eliminate unnecessary confusion among the various inspectors across Ontario and with other regulatory authorities and would ensure that installations not intended to be captured by this exemption, are not unintentionally missed and not inspected as a result of confusion within the industry. The expansion of the exemption from single dwellings to dwelling units is intended to eliminate the need for an inspection in similar installations where a licensed electrical contractor undertakes the work. Previously, the exemption only applied to specific low risk electrical work in single dwellings. An application for inspection was still required when the identical work was being undertaken by the same licensed electrical contractor in a dwelling unit (a triplex, duplex or condo unit); thereby creating confusion among the industry and an additional level of burden that is seen as unnecessary. Whether in a single dwelling unit or a dwelling, the type of work is the same, the level of risk is the same and the individual undertaking the work has the same level of competency; therefore to require a permit in one circumstance and not the other creates a requirement that is inconsistent and one that needlessly burdens industry and inconveniences homeowners without providing any additional level of safety. 1.3. IMPACT ON SAFETY AND INDUSTRY This proposal, if passed, would provide greater overall public value by allowing ESA to focus on higher risk inspections. It would also make it easier for ESA to promote the value of inspection for those types of installations that warrant such an inspection. If there are reasonable limits on what requires inspection then it is easier to promote voluntary compliance with the requirements. In the absence of this promotion and perception of public value, ESA indirectly encourages “underground” electrical work. From a safety perspective, the impact of such an inspection on overall electrical safety when undertaken by a licensed electrical contractor is negligible. Currently, similar work undertaken in a single dwelling unit by licensed electrical contractors is already exempted from this requirement. Given that the type of work being considered is of low risk, it follows that this similar type of work, undertaken by licensed electrical contractors should also be exempted in all dwelling units. Moreover, the inspection fees applicable to like-for-like replacements range from approximately $45 for a single light switch to approximately $66 for a dishwasher replacement. The fact that these fees generally exceed either the cost of the device or the installation fee for an appliance, as well as resulting in a homeowner having to arrange access for an inspection, without any discernible safety impact, provides significant justification for eliminating the requirement. In addition, the actual cost to ESA to perform these inspections exceeds the inspection fee; thereby reducing ESA’s resources available for higher risk inspections or resources available to investigate or prevent future incidents. Finally, rules that do not make sense can have a negative impact on compliance with the OESC in general and the public value of electrical inspection. By rationalizing the circumstances where an application for inspection is required, ESA is able to provide appropriate electrical safety oversight and focus on those areas or electrical installations that are of the highest risk. 1.4. CURRENT PRACTICE Currently, ESA does not receive many applications for inspection pertaining to the replacement of utilization equipment resulting in very few of these types of installations. In 2010, ESA received 55,000 applications for Inspection in relation to renovation type work but the details listed did not differentiate between the types of equipment being worked on. Specifically, 40 permits could be attributed to Dishwasher replacements. Given the extremely high numbers of utilization equipment sold throughout the retail sector; it is reasonable to assume that this work is currently being done outside the regulatory regime. Utilization equipment is readily available and is used throughout residential dwellings. The replacement of such devices is considered very low risk, especially when undertaken by a licensed electrical contractor. This type of work does not require any additional wiring; it merely involves the replacement of the equipment itself; something that any licensed contractor would be comfortable doing without risk. 1.5. JURISDICTIONAL ANALYSIS Many jurisdictions in Canada currently do not require an application for inspection for some types of electrical equipment replacements in dwelling units. Below is a summary of the current regulatory requirements across Canada. The chart demonstrates whether an application for inspection is required for the replacement of utilization equipment in a dwelling unit and whether the exemption is limited to an electrical contractor license. Replacement Permitted without a permit Limited to specific types of equipment BC AB SK MB QC NB NS YT PE NL NU • Switches • receptacles/plugs • ballasts • light fixtures • motors/controllers thermostats • over current devices • <10 D Limits on location Exemption limited to regulated individuals Limits on Voltage Limits on Amperage 150V SFD NDD NT D 150V 30A 120v240v 42A84A 240v 20A 150v240v 30A50A SFD=Single Family dwelling units, NDD=non-detached dwelling units, D=dwelling units As outlined above, seven of the twelve provinces and territories currently allow the replacement of certain equipment under specific circumstances to be undertaken without an application for inspection or permit. Of the seven provinces that allow a similar exemption: • 4 limit the types of equipment that are included within the scope of the exemption; • 4 limit the exemption to regulated individuals (those that are either licensed or hold a certificate of qualification); • 5 limit the types of equipment by voltage or amperage levels; and • Only 2 limit the exemption by location. Upon analysis, the current proposal being considered is in line with the types of equipment that are already exempted in other Canadian jurisdictions. The proposal, if passed, would create a more level playing field between the regulatory requirements in Ontario and that of British Columbia, Alberta, Manitoba, Saskatchewan, Quebec, New Brunswick and Nova Scotia. The remaining jurisdictions have a regulatory structure that remains far more restrictive as they do not have any exemptions to the requirements for inspection; thereby requiring that all electrical installations regardless of risk, complexity, location or person undertaking the work be subject to an application for inspection (permit).