United States: Premium Efficiency Motors: Be Prepared - Don't Be Shocked By New, Stricter Federal Regulation Of Electric Motor Efficiency Standards

Executive Summary

December 19th begins a new era of regulation for a wide range of products sold in the USA that incorporate electric motors. Most electric motors manufactured in the USA, or imported into the USA for sale in the United States, must comply with new standards and regulations designed to improve their power consumption and efficiency. These regulations affect stand-alone electric motors and motors designed for use as a component of another product. Manufacturers, importers and distributors of electric motors or products that contain electric motors must be aware of the new laws and their related federal regulations to ensure that their products may be lawfully sold in the USA. The new laws also impose certain testing and labeling requirements for the covered motors.

Background

The Energy Independence and Security Act of 2007 ("EISA") was passed by Congress three years ago, but its "effective date" was delayed until December of 2010 to give manufacturers sufficient time to design and begin building electric motors that comply with the Act. As the title suggests, the stated purpose of EISA is to promote greater energy independence and security, increase the efficiency of products (including electric motors) and promote the manufacture of clean, renewable fuels. Energy efficiency and savings are expected to be achieved through the use of so-called "Premium Efficiency Motors" in industrial, commercial and residential applications.

EISA will be enforced by the Department of Energy (the "DOE"), which mandates the adoption of higher efficiency standards for three-phase AC industrial motors of 1-500 horsepower that are manufactured and/or imported into the USA after December 19, 2010 for sale in the U.S. The new standards were adopted after consultation with various industries, including especially, the National Electrical Manufacturers Association ("NEMA"). A broad range of products is encompassed by EISA, including external power supplies, residential boilers, furnace fans, furnaces, certain air conditioners, heat pumps, battery chargers, "stand by mode" products, home appliances, walk in coolers and freezers, electric motors, light bulbs, reflectors and metal halide lamp fixtures, among other products. This article focuses on the new standards imposed on electric motors.

Premium Efficiency Motors

EISA mandates that electric motors sold in the USA in various applications must comply with EISA and the new standards created under the federal statute. It is essential that manufacturers, importers and distributors understand EISA and determine whether the law applies to their products. "Sellers" of the covered motors will also have to satisfy certain testing and labeling requirements. The following questions will help you determine
whether EISA applies to your products.

1.) Q. Which motors are covered by EISA?

A. EISA and its related regulations provide specific definitions for "electric motors". Generally speaking, "electric motors" includes general purpose motors, and EISA applies to two subtypes of electric motors. Each subtype is subject to different energy efficiency standards.

Subtype I motors include, without limitation, general purpose, two-, four-, and six-pole motors in the 1-200 horsepower range. The Subtype I category includes motors that are: (1) foot mounted, (2) C-face mounted, (3) brakeless brake motors, (4) encoder-ready, (5) IEC (90 frame and up), (6) explosion proof, (7) severe-duty, and (8) washdown.

Subtype II motors incorporate the design elements of a general purpose motor and are configured, without limitation, as one of the following: (1) U-Frame, (2) design C, (3) close-coupled pump, (4) footless (C-face or D-flange without base), (5) vertical solid shaft normal thrust, (6) round body, (7) eight-pole, (8) poly-phase (less than 600 volts, other than 230 and 460 V ), (9) fire pump, and (10) general purpose within the 201-500 horsepower range.

2.) Q. Does EISA apply to component motors?

A. Yes. The EISA regulations provide as follows: "The [Act] establishes energy efficiency standards and test procedures for certain commercial and industrial electric motors manufactured (alone or as a component of another piece of equipment).... (10 C.F.R. § 431)"

3.) Q. Does EISA apply to imported motors?

A. Yes. EISA specifically provides that "[M]anufacture means to manufacture, produce, assemble, or import." (10 C.F.R. § 431.2.) Thus, electric motors manufactured in a foreign country that are imported after December 19, 2010 must comply with EISA's energy efficiency and labeling requirements. However, the Act is silent as to whether it is the foreign manufacturer's or the USA customer/importer's obligation to obtain applicable Compliance Certificates and affix the requisite labeling to the motor. Penalties imposed under the Act will most likely be enforced against the USA customer and/or the importer. Thus, an importer of an electric motor (or a product that contains a covered electric motor as a component) should either (1) ensure that its foreign supplier's products comply with EISA; or (2) take the necessary steps on its own to ensure compliance (this might include testing, and obtaining compliance certificates, and/or labeling of the product). Regardless of who in the distribution chain this burden falls upon, the burden must be satisfied; failure to do so will violate EISA.

4.) Q. What about covered electric motors manufactured and in inventory prior to December 19, 2010.

A. EISA allows a motor manufacturer and/or its seller to sell its existing inventory of non-compliant motors after the December 19th date, so long as the motors were manufactured prior to December 19th. However, the importation of a non-compliant motor into the USA is prohibited after December 19th, 2010, even if manufactured abroad before that date. As noted above, "manufacture" as defined by EISA means "to manufacture, produce, assemble, or import." Whether the motor is sold as a stand-alone product or is a component of another product, the previously manufactured, non-compliant motor and/or product must be in inventory in the USA prior to December 19, 2010.

In addition, although motors manufactured in the U.S. for intended export do not have to comply with EISA, the containers they are to be shipped in must be marked, "Intended for Export."

5.) Q. How will EISA be enforced?

A. EISA imposes a "self-policing" system to ensure compliance. Section 431.36 states that an electric motor manufacturer must submit "Compliance Certifications" to the DOE which certifies that the manufacturer's motors meet all the requirements set forth in EISA. Subpart B of EISA outlines in detail the tests that each manufacturer needs to perform on its electric motors to determine whether the electric motors are compliant. Upon receipt of a "Compliance Certificate" pertaining to a specific motor, the DOE may conduct its own testing of the motor to confirm compliance. This DOE test, however, will not be conducted until after the manufacturer has been offered the opportunity to meet with the DOE to verify, as applicable, compliance with EISA.

6.) Q. Will Customs be involved in the enforcement of EISA?

A. Yes, but it will probably take several months before the U.S. Custom's Department ("Customs") initiates practices and polices to ensure compliance with EISA. If a company imports and sells covered products in the USA, it must comply with 10 CFR Part 431. Any person who imports a covered product is considered a "manufacturer" under Part 431. Covered products that are not in compliance may be refused admission into the customs territory of the USA. However, as of this date, there have been no procedures or requirements established within Customs relative to the enforcement of EISA or the prevention of entry of non-compliant motors into the USA. While the DOE has issued its own regulations relative to compliance, the DOE has not issued any forms or certification procedures to Customs to be used to ensure that imported motors are compliant. We anticipate that Customs will check motors (or products containing motors) upon importation in the future. In any event, all importers should immediately comply with EISA and assure that electric motors imported into the USA meet the new EISA standards. Importers are also urged to check with counsel and/or their customs brokers regularly to determine if any enforcement procedures are established in the future.

Conclusion

Although electric-motor manufacturers and importers have had three years to prepare for the enforcement of EISA and its related regulations, some companies might still be surprised by the extent to which EISA regulations will affect their manufacturing process and/or importing activities. Machine and motor importers certainly do not want to begin addressing the new regulations after their products are stopped at Customs or following an inspection by the Occupational Safety and Health Administration ("OSHA") of a customer's plant. Complying with EISA and its related regulations should be a primary task of electric motor manufacturers, importers, and sellers now and in the future.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.