The House Committee on Energy and Commerce has approved an amendment May 20 that creates a NEMA Premium motor rebate program. During committee work on the House of Representative's climate change legislation, Representatives Tammy Baldwin (D-WI) and Mike Ross (D-AR) offered an amendment to incentivize the adoption of NEMA Premium motors.Ah. Yes. Services to their district. AKA bribing the voters. And no doubt the Congress Critters will be looking for generous campaign contributions from all those that they have helped.
The amendment, which is nearly identical to an amendment the Senate Energy and Natural Resources Committee adopted last month, incentivizes the purchase of NEMA Premium motors by creating a federal rebate program. This amendment approves $350 million to provide $25 per horse power rebate for NEMA Premium motors. This provision also provides a $5 per horse power rebate for the proper disposal of the inefficient, non-NEMA Premium motors.
"Representatives Tammy Baldwin and Mike Ross recognize the importance of making our country energy-efficient, while listening to the needs of their constituents," said NEMA President and CEO Evan R. Gaddis. "Congresswomen Baldwin represents Wisconsin's Second Congressional District, and Congressman Mike Ross represents Arkansas' Fourth Congressional District. Both districts house America's major motor manufacturers, and these two representatives have identified their district's needs and have taken the necessary steps to address them."
And my guess on the net effect of all this? The cost of electric motors will rise to the point that nearly all the subsidy is absorbed by the manufacturing and distribution chain with none of it showing up as lower prices for consumers. Thus adding inefficiency to the economy. Because in most cases if there was an economic reason for higher efficiency motors they would already be used.
I think this is just another case of the public being Jobbed by Greens and politicians. In the case of wind turbines (discussed in the previous link) the subsidies are so high that the wind companies are paying utilities to take the wind energy they produce.
Cross Posted at Classical Values