Legislation that would create a $700 million motor-rebate program for energy-efficient motors was introduced in the U.S. Senate by Senator Blanche Lincoln (D-AR). The "crush for credit" legislative proposal was advocated by the National Electrical Manufacturers Association (NEMA).

The proposal creates a federal rebate program that will provide a $25 per horsepower rebate for the purchase of NEMA Premium energy-efficient motors. It also provides for a $5 per horsepower rebate for the proper disposal of the less efficient motors replaced.

"Senator Lincoln continues to be an advocate for energy efficiency and creating jobs in her home state and the U.S.," says Evan Gaddis, president and CEO of NEMA. "Enactment of this legislation will reduce energy costs and save end-users money by promoting the replacement of less efficient motors with more efficient motors and move the U.S. a step closer to energy independence. It will also create manufacturing jobs as demand for motors will increase with the proposed rebate."