NEMA: Tax breaks for motor efficiency; economy improves

The National Electrical Manufacturers Association (NEMA) and The American Council for an Energy Efficient Economy (ACEEE) agreed on changes and additions to federal standards for energy-efficient motors, and gave their suggestions to the U.S. Congress. The organizations recommended several motor efficiency provisions.

By Staff May 1, 2007

The National Electrical Manufacturers Association (NEMA) and The American Council for an Energy Efficient Economy (ACEEE) agreed on changes and additions to federal standards for energy-efficient motors, and gave their suggestions to the U.S. Congress. The organizations recommended several motor efficiency provisions.

NEMA and ACEEE recommended that their proposed motor efficiency provisions begin 36 months after enactment and cover three types of electric motors:

  • 1-200 horsepower general purpose, poly-phase integral-horsepower induction motors;

  • Seven types of low voltage poly-phase, integral-horsepower induction motors not currently covered under federal law; and

  • NEMA design “B” 201 to 500 horsepower general purpose motors.

The groups also recommended tax incentives for motor manufacturers and end-use purchasers be included, to accelerate the production and installation of premium efficiency electric motors the 36 months prior to the effective date of the new motor standards.

The proposed standards will raise the efficiency of industrial motors in coming years to the highest levels of any country in the world, NEMA says, which is important since the motors can operate more than 20 years. ACEEE projects that the net cumulative energy savings would be 8 billion kilowatthours through 2030, saving consumers about $500 million. The groups “see this proposal as a great opportunity to help the country reduce greenhouse gas emissions.”

Separately, NEMA reported that North American business conditions improved for the first time in eight months in March, according to executives responding to NEMA’s monthly Electroindustry Business Confidence Survey. The Electroindustry Business Confidence Index (EBCI) for current North American conditions climbed to 56.5 for the month, NEMA says, the highest level since April 2006. The survey’s measure of the mean degree of change in North American business conditions remained positive for a second month in a row, rising to +0.2 from +0.1 in February.

The EBCI for future North American conditions indicated that survey panelists expect to see further improvement in business conditions over the next six months, NEMA explains. While down from February, March’s reading of 54.3 was the second straight to surpass the 50-point growth threshold.

www.nema.org

www.aceee.org