This is a special edition of the Sponsor Update, featuring MDM’s presence at the Electrical Apparatus Service Association (EASA) Convention in Washington, D.C., June 20-22.

The Motor Decisions Matter booth at the EASA Convention was a hot spot for discussion about the campaign’s materials, sponsors and services.

On June 22, Motor Decisions Matter held its biannual meeting to discuss strategies for the second phase of the campaign.

DOE's 2004 Industrial Energy Savings Roadmap identifies potential energy savings of 22 percent across industry, based on current industry-wide consumption.

Some motor distributors currently see NEMA Premium motors as prohibitively expensive due to higher stocking and retail costs, and costs of educating salespeople about benefits of premium-efficiency motors. California's new rebate program will help distributors offset these costs.

Special Edition

Welcome to the August issue of the Motor Decisions Matter Sponsor Update. This is a special edition, featuring MDM’s presence at the Electrical Apparatus Service Association (EASA) Convention in Washington, D.C., June 20-22.

At the Convention, we found many participants eager to learn about the campaign and its resources. There were several noteworthy presentations on motor management and the future of motor efficiency opportunities. An excellent turnout made for stimulating discussion at our biannual MDM Sponsors Meeting, which followed the Convention.

MDM-related submissions to the Sponsor Update are always welcome. Feel free to contact Emily Dahl 617-589-3949, ext. 226, with announcements, story ideas, photos and other news.

Motor decisions do matter ...
EASA Convention proves it

JERRY PEERBOLTE

The Motor Decisions Matter booth at the EASA Convention was a hot spot for discussion about the campaign’s materials, sponsors and services.

Many of the Convention attendees who stopped by were already familiar with MDM and recounted their positive experiences with the campaign’s resources. Others were intrigued by the amount of attention MDM was receiving in Convention sessions and wanted to learn more.

Interest in MDM’s 1-2-3 Approach to Motor Management was sparked by Jerry Peerbolte, a renowned marketing expert and former motor sales representative. During his well-attended motor management session, Peerbolte detailed the benefits of 1-2-3. EASA members George Flolo of The Flolo Corp.; Brian Gibbon of Anstee & Ware, Ltd. (England); Jerry Gray of Sloan Electric; and Bill Nielsen of Flanders Electric Motor Service participated in the session panel.

“After this session, many of the attendees came to our booth to get additional information about sound motor management planning and the 1-2-3 Approach,” said Ilene Mason, who manages MDM. “They saw from Jerry’s presentation how valuable motor management tools and services could be for their customers.”

Peerbolte’s presentation can be found on the MDM Web site.

Paul Scheihing of the Department of Energy also recognized the importance of Motor Decisions Matter’s message in his update on energy policy and tax incentives. He unveiled the preliminary results of the 2004 DOE Industrial Energy Savings Roadmap to session participants.

Scheihing’s presentation can be found on the MDM Web site. See separate story for further details.

The Roadmap ranks efficient motor implementation and improved rewind practices in the top 10 opportunities for industrial energy savings. Scheihing also spoke on the Plant-Wide Assessment program, which has resulted in energy savings solutions for a number of plants.

Following Scheihing’s presentation, MDM held its biannual meeting, where sponsors discussed exciting new opportunities for the campaign.

“In the past few years, awareness of the benefits of sound motor management has grown within the motor industry,” said Mason. “EASA provided an excellent forum for educating their members about the opportunity to promote motor management to their commercial and industrial customers.”

Sponsors’ Meeting explores new opportunities

On June 22, Motor Decisions Matter held its biannual meeting to discuss strategies for the second phase of the campaign. This meeting followed the EASA Convention.

As demonstrated at the Convention, the campaign is gaining recognition among those who sell and service motors. MDM is rapidly becoming a credible means for engaging customers in discussions about motor-related efficiency opportunities.

Highlights of the meeting included:

1) A presentation on 2003 NEMA Premium™ shipment data
2) Possibilities for broadening MDM’s scope to include motor systems
3) California’s new motor rebate program
4) MDM’s communications and outreach plans

Presentations are available on the MDM Web site.

MDM campaign staff Ted Jones, Ilene Mason and Emily Dahl began the meeting by updating the 23 attendees on the campaign’s good financial health, the 1-2-3 Approach to Motor Management’s success and MDM’s strategy for reaching executive-level decision-makers through the business and financial press.

Kurt Riesenberg, Industry Director of NEMA, presented sponsors with the state-by-state, non-OEM, NEMA Premium shipment data for calendar year 2003. The data showed a marked increase – from 266,958 in 2002 to 311,117 in 2003 – of NEMA Premium motor shipments. MDM sponsors had requested this information to help assess the importance of motor-related energy-efficiency programs.

Riesenberg reported that NEMA is currently unable to release shipment data for non-OEM, non-NEMA Premium motors. The non-NEMA Premium data will be released if NEMA can resolve some reporting issues associated with the data.

During the meeting, MDM sponsors discussed an expansion of the campaign’s scope to include motor systems. “While the campaign’s primary focus will remain on motor management, the campaign sponsors agreed to begin developing a secondary message about the benefits of energy-efficient motor systems,” explained Mason.

MDM’s motor systems message will center on management strategies, not technical issues. Sponsors plan to start looking into variable-speed drives as the first step in addressing this issue. Those with program experience in this area are encouraged to contact Ilene Mason at 617-589-3949, ext. 225.

An interesting addition to the MDM meeting was a presentation by Luther Kopf of Energy Solutions. Kopf spoke on behalf of California’s new Statewide Distributor Rebate program, which provides financial incentives to distributors (see separate story).

Prior to the meeting, sponsors had received a draft communications strategy for the second phase of the campaign. The remainder of the meeting was devoted to discussing this strategy. During the discussion, sponsors confirmed MDM’s basic outreach strategies and explored specific activities to achieve the campaign’s goals.

Sponsors also suggested expanding the communications strategy to include a message about the importance of efficient motor systems. For a copy of the draft, contact Emily Dahl at 617-589-3949, ext. 226. Continued sponsor input is welcome.

Thank you to all who participated in the meeting, both in person and by phone. These meetings provide important guidance and direction for the campaign as well as an opportunity for sponsors to interact and share mutually beneficial ideas. Additional thanks go to EASA, which graciously provided the MDM meeting room at the Convention Center.

DOE cites potential for large motor-related savings

PAUL SCHEIHING

At the EASA Convention, Paul Scheihing of the Department of Energy revealed the preliminary results of a groundbreaking study that will provide analyses of all potential “cross-cutting” opportunities to save energy in the industrial sector.

During a well-attended luncheon session, Scheihing provided initial findings from the 2004 Industrial Energy Savings Roadmap. In this study, DOE has identified potential energy savings of 22 percent across industry, based on current industry-wide consumption.

Savings are valued at about $20 billion per year. According to DOE, approximately one-third of these savings can be achieved with best practices and two-thirds with new technology.

The Roadmap contains an analysis of the top 20 opportunities for industrial energy savings. Installation of energy-efficient motors and improved rewind practices rank ninth, with potential nationwide savings of more than 250 trillion Btu. These motor-related opportunities represent an energy cost savings potential of more than
$1 billion.

Other motor systems ranking in the Roadmap’s top 20 opportunities include pump system optimization (sixth), compressed air system optimization in electrical motor systems (14th) and optimized motor-driven materials processing systems (15th).

“The full study, which refers to and leverages previous market assessments, will be released this fall and should provide helpful data for sponsors to use with customers,” said Ilene Mason, who manages the MDM campaign. “DOE’s findings on the sizable motor-related energy savings available to industry validate sponsors’ efforts to educate the public and their customers on why ‘motor decisions matter.’”

Scheihing also spoke about DOE’s Plant-Wide Assessments program, which helps companies identify major energy savings opportunities in their facilities. A successful assessment application can result in a monetary award defraying the cost of the assessment. Through the program, DOE is awarding up to $100,000 per company.

Since the assessment program began in FY2000, more than $200 million in annual savings opportunities have been identified, with 10-15 percent annual savings identified per plant. Of the identified savings opportunities, $29 million in annual savings have been implemented so far.

Seven plants are replicating the efficiency upgrades recommended by the assessments and are using DOE’s assessment methodology to determine which of their other facilities can benefit from upgrades.

In his presentation, Scheihing stressed the value of partnerships between energy-efficiency supporters, DOE and other organizations. He also highlighted the importance of Motor Decisions Matter activities. “EASA members should become more active in EASA and Motor Decisions Matter to promote energy-efficient motor systems,” he said.

Scheihing’s presentation is available on the MDM Web site.

For more information about DOE’s Industrial Technologies Program, including current and upcoming opportunities for financial assistance with energy-efficiency projects, visit www.eere.energy.gov/industry.

California program offers rebates to distributors

Sponsors attending the MDM meeting were very interested in a presentation by Luther Kopf of Energy Solutions on behalf the California Motor Distributor Rebate Program. Under the auspices of the California Public Utilities Commission (CPUC), the program is sponsored by the three major investor-owned utilities in California: Southern California Edison, Pacific Gas & Electric and San Diego Gas and Electric. It is designed to help California-based distributors purchase and promote NEMA Premium™ motors.

“The key to true market transformation is to work upstream, offering rebates directly to the motor distributor,” said Kopf.

He explained that some distributors currently see NEMA Premium motors as prohibitively expensive due to higher stocking and retail costs, and costs of educating salespeople about benefits of premium-efficiency motors.

The new program will help distributors offset these costs. NEMA Premium market penetration should increase once distributors are more easily able to stock premium-efficiency motors and are better trained to sell them.

Since there are fewer than 1,000 distributors in California, this rebate program has the potential to reach the majority of them. California’s previous rebate programs focused on customers, a much larger group than distributors. The California Motor Distributor Rebate Program is expected to be more successful not only because of the smaller target audience, but because – unlike customer-based incentives – distributor-based incentives will address the availability of premium-efficiency motors.

The program’s on-line application streamlines the process for receiving the incentive; it is easy to use and enables quick processing and payment. The rebate program has also increased incentive levels for motors larger than 25 hp. Its goal is to halve the price difference between NEMA Premium and less efficient motors. Rebates range from $33 for a 1 hp motor, to $128 for a 25 hp motor, to $1,192 for a 200 hp motor.

The California Motor Distributor Rebate Program can help you sell NEMA Premium motors. In addition to rebates, the program also offers sales presentations to California distributors and joint marketing promotions.

For further information, contact Luther Kopf at 510-482-4420, ext. 230.

Visit www.cadistributorrebates.com for more information about the program.