1. © 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.“.

2. © 2009 Regal Beloit Corporation. All rights reserved. Motors and Applications 1 to 200 H P Industrial and commercial Pumps Fans Material Handling

3. © 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

4. © 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

5. © 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

6. © 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 Rules Must 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.

7. © 2009 Regal Beloit Corporation. All rights reserved. What is pending? ….“Crush for Credit”

8. © 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 Credit Rebate Proposal

9. © 2009 Regal Beloit Corporation. All rights reserved. Federal Rebate for NEMA Premium® Motors Included in Senate Energy Bill Released from NEMAMarch 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)

10. © 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

11. © 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...

12. © 2009 Regal Beloit Corporation. All rights reserved. Operating cost of Epact Motor per Year EPAct motor @ $.07/kwh DOE source

13. © 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 included 4.5 point of efficiency spread Why Should I Upgrade? Source – Motor Decisions Matter

14. © 2009 Regal Beloit Corporation. All rights reserved. Lifetime Motor Costs Are the Key Dependent upon motor size energy cost and number of operating hours

15. © 2009 Regal Beloit Corporation. All rights reserved. Assumes $0.10 per kW-hr Estimated annual usage by product 1.0 Mw-hr = 0.7 tons of CO 2 Unsustainable RBC Potential One Year of RBC Motor Production Energy Efficiency Driving Demand

16. © 2009 Regal Beloit Corporation. All rights reserved. Department of Energy Estimated Impact of NEMA Premium Over 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

17. © 2009 Regal Beloit Corporation. All rights reserved. NEMA MG1 Table 12-11 (EPACT)

18. © 2009 Regal Beloit Corporation. All rights reserved. NEMA MG1 Table 12-12 (NEMA Premium)