Industrial Utility Efficiency

Baldor and New EISA Law Deliver Increased Energy Savings

Good morning. Please describe the new U.S. “EISA” legislation as it pertains to motors.

The Energy Independence and Security Act (“EISA”), which was signed into law in 2007, becomes effective on December 19, 2010. This law expands the mandated energy efficiency standards from the Energy Policy Act of 1992 (EPAct) for a wider range of industrial motors manufactured to be sold in the United States. The new law covers general purpose, three-phase AC industrial motors from 1 to 500 horsepower. The new efficiency standards will apply to motors manufactured after December 19, 2010.

 Baldor’s Super-E NEMA Premium Motors Meet the New EISA Efficiencies

What are the new efficiency standards under EISA?

For each general-purpose rating (Subtype I) from 1 to 200 horsepower, that was previously covered by EPAct, the law specifies a nominal full-load efficiency level based on NEMA PremiumÆ efficiency as shown in NEMA MG 1, Table 12-12. All 230 or 460 volt motors currently under EPAct, manufactured after December 19, 2010, must meet or exceed this efficiency level.

General Purpose Electric Motors (Subtype II) not previously covered by EPAct will be required to comply with Energy Efficient efficiencies as defined by NEMA MG 1, Table 12-11. The term `general purpose electric motor (subtype II)’ means motors incorporating the design elements of a general purpose electric motor (subtype I) that are configured as one of the following:

• U-Frame Motor.
• Design C Motor.
• Close-coupled pump motor.
• Footless motor.
• Vertical solid shaft normal thrust motor (as tested in a horizontal configuration).
• An 8-pole motor (900 rpm).
• A poly-phase motor with voltage of not more than 600 volts (other than 230 or 460 volts.
• 201 – 500 horsepower motors not previously covered by EPAct will be required to comply with Energy Efficient efficiencies as defined by NEMA MG 1, Table 12-11.

How do the efficiency levels of EISA compare to the efficiencies of Baldor’s standard motors and Super-E motors?

The average efficiency improvement will be of 2-3%. Generally, the mandated efficiency levels of EISA for Subtype I motors fall at the present efficiencies of Baldor’s Super-EÆ NEMA PremiumÆ efficient motors for general-purpose 1 – 200 HP motors. The Subtype II 1 – 200 HP and general purpose 201 – 500 HP motors may require Baldor to raise the efficiency of some designs to comply with MG 1, Table 12-11, however many general purpose 201 – 500 HP EPAct-level Standard-EÆ designs presently comply. Super-E NEMA Premium motors will meet or exceed the EISA requirements for either of these motor types.

What motors are not covered by EISA?

The following motors are not covered by EISA.

• Baldor Single phase motors
• DC motors
• Two-digit frame sizes (48 – 56)
• Milti-speed motors
• Medium voltage motors
• “Design D” with high slip
• Adjustable speed with optimized windings
• Customized OEM mounting
• Intermittent duty
• Integral with gearing or brake where motor cannot be used separately
• Submersible motors

How should air compressor manufacturers and other OEM’s be preparing themselves for EISA?

Air compressor manufacturers purchase both open and enclosed 2-Pole motors. They are, in general, already aware of these upcoming changes. On December 19th, they will be forced to purchase more efficient motors meeting EISA efficiency levels (like Baldor’s Super-EÆ NEMA PremiumÆ efficient motors) for their air compressors. We recommend that OEM’s begin preparing today to see how their products will be affected by this U.S. Government mandate. For those requiring new UL and CSA approvals, they need to get moving on this.

The good news is that air compressors, as a category, will consume 2-3% less energy. The industrial customers purchasing air compressors will realize energy savings and reduce their operating costs. Over a twenty-year period, energy-costs typically represent 97.3% of the total cost of owning and operating a motor.

 20-year Motor Life-Cycle Cost

Will motor prices be increased?

Keeping in mind that the initial purchase cost of a motor represents 3% of the total ownership cost over twenty years, the answer is “yes”. To provide the enhanced efficiency levels mandated by ESIA, all the motor manufacturers will need about 40% more laminations to build the same number of motors. The lamination stack length will increase while lamination thickness is reduced. This means each motor will require more lamination pieces. As an industry, we will require an increase of forty percent (40%) more lamination pieces. to add more active material (high-grade lamination steel, copper windings and aluminum). Tomorrow’s “standard” motor will have the price and efficiency of today’s “premium-efficiency” motor.

Are utilities going to offset the price increase with energy incentives?

We do know that utilities are moving more incentive funding towards performance-based incentives as opposed to prescriptive incentives with regards to energy savings. This will help motor management programs and motor-upgrades. It will also help industry realize energy savings when purchasing new air compressor to replace older units with older motors.

There is also a bill moving through Congress, which will help. It is designed to pay \$25 per horsepower to the owner of a motor who upgrades to a new EISA motor. It will also pay \$25 per horsepower to the motor distributor. The bill has a budget of \\$700 million over five years. The bill is directing the DOE to set up and execute this program. The recommendation, in the bill, is to replace pre-EPAct motors. It may exclude smaller motors not normally rewound today but this needs to be decided by DOE.

Tax credits may also become available from state and federal energy offices. There are many programs in the works. We also have accelerated depreciation provisions on motors and capital equipment in the Stimulus bill which has been extended. It is important that Energy Managers be aware of all the incentive programs available to them.

 Baldor Reliance Super-E Motors Will Exceed EISA Mandates

Are other countries enacting similar motor-efficiency legislation?

Baldor Reliance Super-E Motors Will Exceed EISA Mandates

Baldor, as a Company, has embraced the new EISA legislationenergy efficiency and making US companies more productive. We have worked both in Washington D.C. to provide advice and in our own factories to prepare for this change which will benefit U.S. industry. We are pleased that the U.S. is taking a global leadership position on the topic of motor efficiency and reduction of carbon emissions.

The U.S. is at least ten years ahead of any other country in the world on electric motor efficiency mandates. Europe just now defined (IE 3) what the level for a premium motor is (IEC IE3) and they won’t make it mandatory for motor manufacturing until 2017. Until then, they will continue to raise their efficiency levels and manufacture more standard motors to efficiencies similar to where we are today with EPAct.

How is Baldor preparing for EISA?

Baldor has long had a culture embracing energy efficiency and energy management. Our own Energy Managers can tell you, right now, how much electricity and natural gas our own factories consume per motor manufactured (energy intensity). Baldor has 24 plants in the U.S. and wWe practice what we preach at Baldor and for that reason our whole company has embraced the new efficiency standards.

This is a unique situation for Baldor in that all of our motor plants are in the U.S. Many of oOur competitors build motors all over the world. We manufacture 5000 “sku’s” with at least five times that many optionscustomized OEM designs. At Baldor, we process our own steel and have been working for a long time with our heat-treating ovens and steel-coating processes to prepare for this. It’s an understatement to say that Baldor has been working hard and investing in the new motor designs. We are pleased that we are on schedule and will be ready to go in well before December 2010.

Is Baldor launching a new line of motors?

Baldor’s plan is to raise the efficiency levels of our present general purpose standard motors. Thus, before December 19, 2010, the efficiencies of our standard, general-purpose Subtype I and II motor line will match the EISA required levels. Beginning on that date, even though they have NEMA
Premium efficiency, we will continue refer to these improved motors as Baldor’s Standard-E line.

We will not change any catalog numbers. Our customers and sales people know our present catalog numbers and use them daily. Baldor’s upgraded Standard-E motors will have the same catalog numbers as today’s motors. For those customers wishing higher efficiencies, Baldor Reliance Super-E motors will be available.

We are actively engaged with Energy Management teams at large corporations and with our OEM’s. First, we suggest that they become familiar with the requirements and opportunities presented by the EISA mandate. We have prepared a educational document titled:

“EISA-The law’s requirements for 1 to 500 hp AC motors. Effective December 19, 2010”.

People can access this document at www.baldor.com or contact me (John Malinowski) for more information.

What actions should Energy Managers take?

We work with many Energy Management teams as they work to upgrade their motor efficiencies. We offer a popular Webinar, called “How to Save Energy and Reduce Downtime for Electric Motors”. We have done this for major many packaging food companies, utilities like Pepsi and Frito Lay. We have done it for Detroit Edison, for Energy Star, and for many firms in the automotive industryENERGY STAR. It is a good educational experience which gets the teams started.

We then suggest a three-stage motor evaluation program. Baldor has experts which work with factories to go through this process.

• The first level is to create a motor inventory and to “tag” each motor with instructions on which EISA-compliant motor to purchase in event of failure.
• The second level is about “right-sizing”. This involves load measurement on specific motors and then upgrading to motors which will provide energy savings. This may mean an Adjustable Speed motor or simply a newer motor.
• The third level involves system assessments. This includes compressed air system assessments, more efficient belting, and more efficient power transmission (to name a few examples).

Since electric motor driven systems represent over 70% of the electricity used by most industries, we need to focus on these improvements. Electricity is a cost that industry can control by using better motors, adding adjustable speed drives and more efficient driven equipment. The most energy efficient motor is one that is turned off when not needed, so process control is also important.