© 2009 Regal Beloit Corporation. All rights reserved.

Applying motors as a means

to reduce electrical

energy demand

"These materials are intended to provide general information (not legal or other advice) about important new legislation or developments. These materials are not intended to substitute for a thorough analysis of the subject covered or any subsequent developments relating to that subject.“.

© 2009 Regal Beloit Corporation. All rights reserved.

Motors and Applications1 to 200 H P

• Industrial and commercial • Pumps• Fans• Material Handling

© 2009 Regal Beloit Corporation. All rights reserved.

Motor Facts• Industrial motors can have a 20 to 30 year service life • The average IHP motor is repaired 3 or more times in

it’s life [ source EASA ]• The average IHP motor uses 4 to 6 times it’s original

cost in electricity per year• Current Epact regulations covers less than 75% of

motors sold today• Environmental groups estimate over 5 million units

are repaired each year

© 2009 Regal Beloit Corporation. All rights reserved.

EISA is the acronym for the Energy Independence & Securities Act

• This law was signed on December 19, 2007 and will be enforced

beginning on December 19, 2010

• On December 19, 2010, motor manufacturers may not build motors

that have a lower nameplate efficiency than the rules allow.

• Motors that are considered “finished goods” or are shipped from the factory

before December 19, 2010 can be sold after December 19, 2010

because they were built before the deadline.

EISA Basics

© 2009 Regal Beloit Corporation. All rights reserved.

General Purpose motors that today need to meet EPACT,

will need to meet the NEMA Premium efficiency levels in 2010

General Purpose motors that were exempt from EPACT

because of voltage, mounting, etc will need to meet EPACT in 2010

Motors that cannot be used in most applications, such as special shafts,

blowers or nonstandard frequencies, are exempt from any regulations

for efficiency.

General Overview of EISA Levels

© 2009 Regal Beloit Corporation. All rights reserved.

Must meet EPACT

(Table 12-11)

Close Coupled Pump

Vertical Solid Shaft

Round body

Nonstandard Voltages, 60Hz

200-500hp

Firepump motors

U-frame

8-Pole

Design C

Specific EISA RulesMust meet NEMA Premium

(Table 12-12)

1-200hp

Design A & B

C-face, D-flange

Footed

Voltages covered by

EPACT (60Hz)

Exempt / Not

Covered

Single phase

Special shaft extensions

TEBC, TEAO, DPFV, TENV

Special V/Hz inverter motors

Non-continuous duty

Design D

Phase converters

Multi-speed

50Hz

Two-digit frames (48, 56)

Note: Frame size is not an exemption.

If a motor is an IEC frame, follow the rules just as if it was a NEMA Frame.

If a motor is above a NEMA frame (680), follow the rules just as if it was a 440 frame.

© 2009 Regal Beloit Corporation. All rights reserved.

What is pending?

….“Crush for Credit”

© 2009 Regal Beloit Corporation. All rights reserved.

APPLICATION—To be eligible as required one must have demonstrated evidence that the entity purchased an electric motor to replace an installed motor removed the installed motor the entity from service; and properly disposed the installed motor of the entity; and the physical nameplate of the installed motor of the entity.AUTHORIZED AMOUNT OF REBATE—The Secretary may provide to an entity that meets each requirement under paragraph (1) a rebate the amount of which shall be equal to the product obtained by multiplying the nameplate horsepower of the electric motor purchased by $25.00.

PAYMENTS TO DISTRIBUTORS OF QUALIFYING ELECTRIC MOTORS—To assist in the payment for expenses relating to processing and motor core disposal costs, the Secretary shall provide to the distributor of an electric motor described in sub section 1(1), the purchaser of which received a rebate under this section, an amount equal to the product obtained by multiplying the nameplate horsepower of the electric motor and $5.00. AUTHORIZATION OF APPROPRIATIONS—There are authorized to be appropriated to carry out this section, to remain available until expended—(1) $80,000,000 for fiscal year 2010;(2) $75,000,000 for fiscal year 2011;(3) $70,000,000 for fiscal year 2012;(4) $65,000,000 for fiscal year 2013;(5) $60,000,000 for fiscal year 2014.’’.

Crush for CreditRebate Proposal

© 2009 Regal Beloit Corporation. All rights reserved.

Federal Rebate for NEMA Premium® Motors Included in Senate Energy Bill

Released from NEMA March 31, 2009

By unanimous support, Senator Blanche Lincoln (D-AR) successfully offered the amendment to the Senate's draft comprehensive energy bill. This legislation creates a new energy-efficient motor rebate program for the purchase of NEMA Premium® efficiency electrical motors. Specifically, this program provides a $25 per horse-power rebate for the purchase of NEMA Premium motors, as well as a $5 per horse-power rebate for the disposal of the old inefficient motor. This 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. Once signed into law, this program allows the federal government to spend $350 million to incentivize the wide-spread adoption of NEMA Premium motors.

Crush for Credit

(1) for the purchase and installation of a new electric motor that meets the applicable standard described in section 342(b); and

(2) to replace an installed motor of the entity that does not meet the applicable standard described in section 342(b)

© 2009 Regal Beloit Corporation. All rights reserved.

• Wattsaver® NEMA premium efficient motors 1-200H.P.• Severe-duty IEEE 841 motors through 100 H.P.• AC inverters through 150 HP• High efficiency gear reducers up to 125 H.P.

Products to Serve

© 2009 Regal Beloit Corporation. All rights reserved.

Blue Chip® XRI® -841

Blue Max® and Black Max® Vector Duty

XRI® NEMA Premium® Commercial motors

Blue Chip® XRI® Medium Voltage

Blue Chip® XRI® Explosion Proof

ENERGY SAVING PRODUCTS FROM...

© 2009 Regal Beloit Corporation. All rights reserved.

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

10

20

50

75

100

200

Motor Size, HP

An

nu

al O

pera

tin

g C

ost

2100

4200

6300

8760

Annual Operating

Hours

Operating cost of Epact Motor per Year

EPAct motor@ $.07/kwhDOE source

© 2009 Regal Beloit Corporation. All rights reserved.

Investment Grade Motors Need to Be Measured Over the Life of Your Investment

• 50 HP example over ten years– Repair motor cost = $1114

• Energy use per year =$24,867

– Replacement cost= $2080• Energy use per year=$23,683• Energy savings per year $1,184• Year to pay back .8• Ten year savings $11,841.27• The ROI is over 400%

Based on $.15 at 4000 hours per year no peak charge included4.5 point of efficiency spread

Why Should I Upgrade?

Source – Motor Decisions Matter

© 2009 Regal Beloit Corporation. All rights reserved.

Initial CostMaintenanceAdministrative

Energy

Lifetime Motor Costs Are the Key

Dependent upon motor size energy costand number of operating hours

© 2009 Regal Beloit Corporation. All rights reserved.

Assumes $0.10 per kW-hrEstimated annual usage by product1.0 Mw-hr = 0.7 tons of CO2

Unsustainable RBC Potential

One Year of RBC Motor Production

Energy Efficiency Driving Demand

© 2009 Regal Beloit Corporation. All rights reserved.

Department of Energy Estimated Impact of NEMA PremiumOver a Ten Year Period

• Reduction of 80 million tons of carbon

• Reduction of 5,800 giggawatt/hours

• The equivalent of removing 16 million cars from

American highways

© 2009 Regal Beloit Corporation. All rights reserved.

2 Pole 4 Pole 6 Pole 8 Pole 2 Pole 4 Pole 6 Pole 8 Pole

1.0 0.0 82.5 80.0 74.0 75.5 82.5 80 741.5 82.5 84.0 84.0 75.5 82.5 84 85.5 772.0 84.0 84.0 85.5 85.5 84 84 86.5 82.53.0 84.0 86.5 86.5 86.5 85.5 87.5 87.5 845.0 85.5 87.5 87.5 87.5 87.5 87.5 87.5 85.57.5 87.5 88.5 88.5 88.5 88.5 89.5 89.5 85.510.0 88.5 89.5 90.2 89.5 89.5 89.5 89.5 88.515.0 89.5 91.0 90.2 89.5 90.2 91 90.2 88.520.0 90.2 91.0 91.0 90.2 90.2 91 90.2 89.525.0 91.0 91.7 91.7 90.2 91 92.4 91.7 89.530.0 91.0 92.4 92.4 91.0 91 92.4 91.7 9140.0 91.7 93.0 93.0 91.0 91.7 93 93 9150.0 92.4 93.0 93.0 91.7 92.4 93 93 91.760.0 93.0 93.6 93.6 92.4 93 93.6 93.6 91.775.0 93.0 94.1 93.6 93.6 93 94.1 93.6 93100.0 93.0 94.1 94.1 93.6 93.6 94.5 94.1 93125.0 93.6 94.5 94.1 93.6 94.5 94.5 94.1 93.6150.0 93.6 95.0 94.5 93.6 94.5 95 95 93.6200.0 94.5 95.0 94.5 93.6 95 95 95 94.1250.0 94.5 95.4 95.4 94.5 95.4 95 95 94.5300.0 95.0 95.4 95.4 94.5 95.4 95.4 95 0350.0 95.0 95.4 95.4 94.5 95.4 95.4 95 0400.0 95.4 95.4 0.0 0.0 95.4 95.4 0 0450.0 95.8 95.8 0.0 0.0 95.4 95.4 0 0500.0 95.8 95.8 0.0 0.0 95.4 95.8 0 0

HP

ODP TEFC

NEMA MG1 Table 12-11 (EPACT)

© 2009 Regal Beloit Corporation. All rights reserved.

NEMA MG1 Table 12-12 (NEMA Premium)

2 Pole 4 Pole 6 Pole 2 Pole 4 Pole 6 Pole

1 77 85.5 82.5 77 85.5 82.51.5 84 86.5 86.5 84 86.5 87.52 85.5 86.5 87.5 85.5 86.5 88.53 85.5 89.5 88.5 86.5 89.5 89.55 86.5 89.5 89.5 88.5 89.5 89.5

7.5 88.5 91 90.2 89.5 91.7 9110 89.5 91.7 91.7 90.2 91.7 9115 90.2 93 91.7 91 92.4 91.720 91 93 92.4 91 93 91.725 91.7 93.6 93 91.7 93.6 9330 91.7 94.1 93.6 91.7 93.6 9340 92.4 94.1 94.1 92.4 94.1 94.150 93 94.5 94.1 93 94.5 94.160 93.6 95 94.5 93.6 95 94.575 93.6 95 94.5 93.6 95.4 94.5100 93.6 95.4 95 94.1 95.4 95125 94.1 95.4 95 95 95.4 95150 94.1 95.8 95.4 95 95.8 95.8200 95 95.8 95.4 95.4 96.2 95.8250 95 95.8 95.4 95.8 96.2 95.8300 95.4 95.8 95.4 95.8 96.2 95.8350 95.4 95.8 95.4 95.8 96.2 95.8400 95.8 95.8 95.8 95.8 96.2 95.8450 95.8 96.2 96.2 95.8 96.2 95.8500 95.8 96.2 96.2 95.8 96.2 95.8

HP

ODP TEFC