1. The Future of Energy And Motor Efficiency Laura Reamer 2/17/09

2. 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 General Overview of Levels  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.

3. Must meet EPACT (Table 12-11) Close Coupled Pump Vertical Solid Shaft Round body Nonstandard Voltages, 60Hz 200-500hp Firepump motors U-frame 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.

4.  THE EFFICIENCY VALUE FOR A GIVEN MODEL WILL NOT CHANGE   THE EFFICIENCY LEVEL IS WHAT IT IS   ONLY THE RULES FOR USING A PARTICULAR MOTOR WILL CHANGE  Model vs Rule How to Check a Model for Compliance / Changes 1. Check the model details to see what features it has. What makes the motor NOT general purpose? Voltage, frequency, feet, vertical mounting, etc. 2. Look at the rules on the previous slide or use the flowchart on the next page. Are any of those features still considered special? If not, the motor must meet EPACT or NEMA Premium. EPACT efficiency levels / values are the same now as they will be in 2010 - NEMA MG1 Table 12-11 NEMA Premium efficiency levels / values are the same now as they will be in 2010 - NEMA MG1 Table 12-12

5. Yes No Is motor 143 Fr or larger (equiv IEC) ? Is motor TEAO, TEBC, DPFV or TENV? EXEMPT Yes No EXEMPT Is motor 60Hz? Is motor 1hp through 500hp? Yes No EXEMPT Yes No EXEMPT Does motor have a special shaft ? Is motor 201hp through 500hp? Yes No EXEMPT Is motor Voltage within 10% of 230v or 460v? Is motor Continuous Duty ? Yes EXEMPT No Yes No Is motor a multi-speed or Phase converter? No EXEMPT Yes EXEMPT Is motor Design D? No Yes EXEMPT Does motor have a customer flange ? No MUST MEET NEMA Premium Is motor Medium Voltage? EXEMPT No Is motor CCP, vertical, round, U-frame or firepump? Is motor Medium Voltage? Yes EXEMPT Yes MUST MEET EPACT No Yes MUST MEET EPACT No START Rules Flowchart

6. Examples Example #1: Motor 405TTFS4036 is an EPACT motor. After Dec 19, 2010 it can no longer be built because it is a General Purpose motor (230/460v, 60Hz, 405T, standard bracket, horizontal, rigid base) The rules state that this model must meet NEMA Premium. Increasing efficiency requires a design change. There is already a NEMA Premium design available with model 405TTFS6036 so rather than redesign the EPACT motor 405TTFS4036, we should offer model 405TTFS6036 instead. Example #2: Motor 405TTFS1234 is the same as 405TTFS4036 except it has space heaters and a special 13.75” shaft extension. The space heaters are irrelevant in terms of efficiency. The special shaft extension makes it exempt from the EISA legislation, therefore, it can be standard efficiency.

7. Why should I upgrade an Exempt motor to NEMA Premium instead of rewinding? Higher efficiency motors reduce the operating costs Higher efficiency motors put less stress on utilities, supporting Green initiatives. Comparison of Operating Cost: Example: 100hp 1800rpm ODP motor Operation 24 hrs/day, 240 days/year at a cost of $0.08 per kW-hr Standard efficiency motor with 93% versus NEMA Premium motor with 95.4% Standard efficiency motor costs $36,963 per year to operate NEMA Premium motor costs $36,033 per year to operate Consider the impact this has on a steel mill or paper mill that uses hundreds of motors of all sizes for both core equipment and auxiliary equipment like material handlers, air movers, chillers, packaging equipment…!! Why Should I Upgrade? Over a 20 year life this is $18,600

8. What can Regal-Beloit do for Me? Our Sales and Engineering teams can help ensure compliance with the new efficiency legislation and with your own internal energy initiatives: 1.We will compile a list of the motors that you purchased in the last 12 months 2.We will help analyze the cost and benefits of upgrading each motor 3.We will match those models to the new model number 4.For motors that do not yet have a new model with all of the same features, we will work with you to establish the new model. With special model numbers, it may be possible to keep the same model number when redesigning the motor to a higher efficiency level For special motors that will still be exempt in 2010, consider upgrading to save operating cost over the life of the motor Some applications may have size, weight or performance constraints - - now is the time to consider these special conditions.

9. NO LEGISLATION by IEC - - Voluntary Compliance 2/1518/FDIS document issued in Sept 2008 defines levels for IE1, IE2, IE3 IE4 is not defined but is reserved for Super Premium 50Hz IE1 is based upon EFF2, not a direct match IE2 is based upon EFF1, not a direct match IE3 is based upon 15% to 20% lower losses than IE2 NEMA Table 12-14 currently meets or exceeds IE3 but may be changed to match IE3 60Hz IE1 60Hz is equal to Brazil’s level IE2 60Hz is the same as EPACT IE3 60Hz is the same as NEMA Premium European Actions - IEC IE1 IE4 IE2 IE3

10. APPENDIX

11. NEMA MG1 Table 12-11 (EPACT)

12. NEMA MG1 Table 12-12 (NEMA Premium)

13. NEMA MG1 Table 12-14 (NEMA Premium for 50Hz)

14. IEC: IE1

15. IEC: IE2

16. IEC: IE3