Mandated premium efficiency levels go into effect in December

Have you wondered where proposed legislation in the U.S. stands with regard to a federal rebate program for NEMA Premium® motors? The short answer is: It is in Washington, D.C.

As EASA has previously reported, House Bill 4031 was introduced last November that would provide a rebate of $25 per horsepower for the purchase of NEMA Premium® motors and a rebate of $5 per horsepower to the distributor for the scrapping of the older, less efficient motor. HR 4031 removed the proposal from the “cap and trade” legislation that stalled last year (HR 2454) and doubled the rebate program to $700 million over a five-year period (or an estimated 20% of the affected new motor market).

HR 4031 was referred to committee, where it remains. To follow that bill, go to www.govtrack.us/congress/bill.xpd?bill=h111-4031. The proposal was not part of the energy bill introduced recently by Senators Kerry, Lieberman and Markey. However, we understand from NEMA Marketing Committee Chair Rob Boteler that the rebate program does have support in the Senate, and they expect it to be part of any climate bill passed. As to when that will be is almost anyone’s guess, but possibly 2011.

Reminder: EISA goes into effect this December
The Energy Independence and Security Act (EISA) of 2007 includes a change in mandatory efficiency levels for electric motors manufactured or imported into the U.S., essentially going from EPAct to NEMA Premium® levels. This change goes into effect on December 19, 2010. See the March 2008 issue of Currents for more information on the motors covered.

Canada considering similar legislation
Motor efficiency legislation similar to EISA is being considered in Canada. The apparent goal is for approval in 2011. Terry Brennan of National Resources Canada appeared at the Ontario Chapter meeting in May held in Ottawa, Ontario, to discuss the proposed legislation. Members can use the link below to download a copy of his presentation. (Members must be logged in for access to the link.)

Will the new efficiency levels in the U.S. alter the motor repair/replace decision?
Some manufacturers and electrical utilities have expressed concern that since the mandated effciency levels in the U.S. will naturally increase new motor prices beginning in December, customers may be more inclined to repair rather than purchase new – which in many eyes will counteract the law’s intent to reduce energy usage in the country.

However, as EASA Marketing & Industry Awareness Committee Chair George Flolo stated, “We are confident that EASA members will continue to do what we as an Association have encouraged for many years, which is to counsel the customer on the best solution for the long term – from a maintenance, reliability and energy standpoint. Sometimes that will mean repair, and sometimes it will mean replace. Members recognize that if we are not helping to keep our customers successful by helping them reduce expenses, including on the big-ticket item of energy, pretty soon we will not have that customer.

“Where available through utilities,” Flolo continued, “we also strongly encourage members to take advantage of rebate programs for motors and drives systems, and make sure their customers are aware of them. We know many of our members participate in such programs while providing a variety of motor management services. In addition, EASA continues to co-sponsor the Motor Decisions Matter campaign and urges members to work with their customers in taking a ‘systems approach’ to managing their motor/drive equipment.”

For information about Motor Decisions Matter, visit www.motorsmatter.org.