As part of a concerted effort worldwide to reduce energy consumption, CO2 emissions and the impact of industrial operations on the environment, various regulatory authorities in many countries have introduced, or are planning, legislation to encourage the manufacture and use of higher efficiency electrically powered motors.
In 1992 the U.S. Congress, as part of the Energy Policy Act (EPAct) set minimum efficiency levels (see Table B-1)[vague] for electric motors.
These include: Based on U.S. Department of Energy data, it is estimated that the National Electrical Manufacturers Association (NEMA) premium-efficiency motor program would save 5.8 terawatts of electricity and prevent the release of nearly 80 million metric tons of carbon into the atmosphere over the next ten years.
Superior so-called "premium" products are now available, ready to change the market toward energy efficiency and to contribute in lowering greenhouse gas emissions worldwide.
This in addition means a big potential impact on reduction of global greenhouse gas emissions.
Investing a little more money upfront for a more efficient motor is often paid back in energy savings.
Improving energy efficiency reduces greenhouse gas emissions that contribute to climate change.
The National Electrical Manufacturers Association (NEMA) actively participated in crafting major provisions on EISA.
[7] A summary of EISA standards for motors:[8] In June, 2005, the European Union enacted a Directive on establishing a framework for setting Eco-design requirements (such as energy efficiency requirements) for all energy using products in the residential, tertiary and industrial sectors.
[9] Coherent EU-wide rules for eco-design will ensure that disparities among national regulations do not become obstacles to intra-EU trade.
The directive does not introduce directly binding requirements for specific products, but does define conditions and criteria for setting requirements regarding environmentally relevant product characteristics (such as energy consumption) and allows them to be improved quickly and efficiently.
[13][14][7] The U.S. Senate Energy and Natural Resources Committee adopted a NEMA-advocated provision that created a premium energy-efficient motor rebate program, also known as a "crush for credit" program, according to the National Electrical Manufacturers Association (NEMA).
This program allowed the federal government to spend $350 million in incentives for the widespread adoption of NEMA Premium motors.
The "Crush for Credit" provision contained in the Senate's version of the "Energy Policy and Conservation Act" (EPCA) ran for five years, and included the following proposed funding:[15] Within the EU, various Capital Allowance Schemes encourage companies to purchase equipment incorporating premium-efficiency motors.
For example, in the UK, the Enhanced Capital Allowances Scheme[16] provides a tax incentive to businesses that invest in equipment that meets published energy-saving criteria.
Key Features of the ECA scheme are A similar scheme in Ireland, Accelerated Capital Allowance (ACA) run by Sustainable Energy Ireland (SEI)[20] lets a company cut its taxable income by 100% of the capital cost of eligible energy-efficient equipment in the first year of purchase.