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Motor rebate part of Senate energy bill

The National Electrical Manufacturers Association (NEMA), Rosslyn, Va., announces that the U.S. Senate Energy and Natural Resources Committee has adopted a provision that creates a NEMA Premium energy-efficient motor rebate program, also known as a “crush for credit” program.

By unanimous support, Senator Blanche Lincoln (D-AR) successfully offered the amendment to the Senate's draft comprehensive energy bill. The legislation creates a new energy-efficient motor rebate program for the purchase of NEMA Premium efficiency electrical motors.

Specifically, the program provides a $25 per horsepower rebate for the purchase of NEMA Premium motors, as well as a $5 per hp rebate for the disposal of the old inefficient motor. This program offsets the cost difference between buying new and efficient yet costlier motors and making less expensive repairs to older, less efficient models, say NEMA officials. Once signed into law, the program allows the federal government to spend $350 million to incentivize the widespread adoption of NEMA Premium motors. According to NEMA’s president, Evan Gaddis, this represents a step toward energy independence.

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