NEMA Premium efficiency motor rebate program in U.S. energy bill
U.S. Senate Energy and Natural Resources Committee has adopted a NEMA-advocated provision that creates a premium energy-efficient motor rebate program, also known as a “crush for credit” program, according to the National Electrical Manufacturers Association (NEMA).
By unanimous support, Senator Blanche Lincoln (D-AR) successfully offered the amendment to the Senate’s draft comprehensive energy bill, NEMA reported. This legislation creates a new energy-efficient motor rebate program for the purchase of NEMA Premium efficiency electrical motors.
The program provides a $25 per horsepower rebate and a $5 per horsepower rebate for the disposal of the old motor. The latter program is needed to offset the cost difference between new, more expensive, efficient motors and the lesser cost to repair the older, more inefficient motors, NEMA says.
Once signed into law, this program allows the federal government to spend $350 million in incentives for the wide-spread adoption of NEMA Premium motors.