Impact of New Federal Efficiency Performance Standards on the Industrial Motor Marketplace

Abstract

The Energy Independence and Security Act of 2007 enacted new motor efficiency standards that will go into effect in December 2010. Previous motor efficiency standards, which were implemented as part of EPAct in 1992, caused some confusion within the motor marketplace. In part, this confusion lead to the development of NEMA’s Premium® label, which has since helped guide motor purchasers to buy efficient motors. As a companion activity, the awareness program Motor Decisions Matter was established to encourage the replacement of motors with more efficient technology rather than the repair of old, inefficient motors. The motor marketplace now faces similar confusion as the new standards will soon be implemented. It is therefore incumbent upon industrial motor users to begin planning for these standards now, both by developing new motor management plans and by updating repair/replace decision criteria to reflect changes in efficiency and price for motor replacement options. At the same time, it is incumbent upon motor efficiency programs and policymakers to address the anticipated negative market behavior trends that will likely result from the new standards’ implementation in the next few years.