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the magazine of the electroindustry

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Published by the National Electrical Manufacturers Association | www.NEMA.org | March 2016 | Vol. 21 No. 3
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CONTENTS

FEATURES
Gold Medallion Homes Bespeak Decades of Energy Efficiency...................................................................8
Net-Zero Home Embodies the New Era of Energy Efficiency.....................................................................10
Clean Power Plan Presents Challenges and Opportunities to De-carbonize the Grid..................................12
Energy Storage: The Role Energy Storage Plays in a High-Renewable Energy Future.................................14
DC Microgrids Gain Popularity in Commercial Buildings..........................................................................16
Putting Sustainable Energy to Work in the Developing World.................................................................18
Recycling Revisited..............................................................................................................................20
Increased Awareness Creates New Paradigm in Recycling ......................................................................22
Taking Sustainability to New Heights....................................................................................................23
Refurbished Medical Imaging Equipment: Sustainable, Safe, and Effective .............................................24

Did You Know...


The Energy Policy Modernization Act of 2016 includes provisions to increase
efficiency in building codes, federal buildings, and schools.
Learn more at
www.nema.org/Energy-Policy-Modernization-Act

ECO BOX
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ei, the magazine of the electroindustry

Publisher | Tracy Cullen


Editor in Chief | Pat Walsh
Contributing Editors | Ann Brandstadter,
Christine Coogle, William E. Green III

Economic Spotlight | Tim Gill


Codes & Standardization Trends | Vince Baclawski
Government Relations Update | Kyle Pitsor
Art Director | Jennifer Tillmann
National Advertising Representative | Bill Mambert

ei, the magazine of the electroindustry (ISSN 1066-2464) is published monthly by NEMA, the Association of Electrical Equipment and
Medical Imaging Manufacturers, 1300 N. 17th Street, Suite 900, Rosslyn, VA 22209; 703.841.3200. FAX: 703.841.5900. Periodicals
postage paid at Rosslyn, Va., and York, Pa., and additional mailing offices. POSTMASTER: Send address changes to NEMA, 1300 N.
17th Street, Suite 900, Rosslyn, VA 22209. The opinions or views expressed in electroindustry do not necessarily reflect the positions of
NEMA or any of its subdivisions.
Subscribe to ei, the magazine of the electroindustry at www.nema.org/subscribe2ei.
Contact us at comm@nema.org.
Follow NEMA:

Newsmakers

NOTES
NEMA Officers........................................................................................................................................................................................3
Comments from the President...............................................................................................................................................................3
View from the Hill..................................................................................................................................................................................4
Listen to the Expert..............................................................................................................................................................................32
I Am NEMA...........................................................................................................................................................................................32

Senator Lisa Murkowski discusses the


Energy Policy Modernization Act.

DEPARTMENTS
Government Relations Update................................................................................................................5
NEMA Expert Testifies at FERC Technical Conference on Supply Chain Security..................................................................................5
Californias Performance Standards for LEDs Represent Potential Step Backwards.............................................................................5
Net Metering Rules Evolve in Solar-Rich States....................................................................................................................................6
Final Version of Chinas Restriction of Hazardous Substances Regulation Now Available...................................................................7
Redo of California Prop 65 Proposed Rule Still Troublesome................................................................................................................7
Trade Facilitation and Enforcement Act Includes Single Window System.........................................................................................7
Electroindustry News...........................................................................................................................26

Greg Galluccio and Dixie Comeau design


a net-zero home.

10

Rockin @ 90 with NEMA.....................................................................................................................................................................26


Code Actions/Standardization Trends....................................................................................................27
Whats Happening in Midwest Code Development ...........................................................................................................................27
This Month in Standards for March 2016 ...........................................................................................................................................27
Dominica Adopts ANSI C12 Metering Standards, Expands NEMAs Global Profile ...........................................................................28
International Roundup........................................................................................................................29
Reducing Trade Barriers to Innovation and Sustainability..................................................................................................................29
Economic Spotlight..............................................................................................................................30
Renewable Energy Advances Repel Threat from Lower Natural Gas Prices .......................................................................................30
Business Conditions Indexes Rebound in January Following December Retreat..............................................................................31

Retiring Harry Massey draws


on his past to affect the future.

32

Coming in April
Next month we will explore the market potential of the city as a system of systems
connecting energy, water, transportation, buildings, and communications sectors.

Officers
Chairwoman
Maryrose Sylvester
President & CEO
GE Lighting
President & CEO
Current, Powered by GE
Vice Chairman
Michael Pessina
Co-CEO & President
Lutron Electronics Co., Inc.
Treasurer
David G. Nord
Chairman, President & CEO
Hubbell Incorporated
Immediate Past Chairman
Don Hendler
President & CEO
Leviton Manufacturing Co., Inc.
President & CEO
Kevin J. Cosgriff
Secretary
Clark R. Silcox

From the President


Sustainability, a word we all hear frequently, is the theme of this months issue. It
carries both a literal and familiar meaning, so allow me to clarify our use of the word
in this magazine. While the textbook definition asserts that something is sustainable if
it can be used without being completely consumed or destroyed, we are focusing on a
second meaning: the capacity to repeat a process indefinitely. What better example of a
repeatable process is there than manufacturing?
This second meaning aligns closer to trends in the environmental arena, as well
as concepts surrounding stakeholders roles in corporate philosophy. Increasingly
stakeholders seek a deeper understanding of a company in addition to reviewing the
financials and this is where the sustainability discussion leads us.
More than 20 years ago, the notion of triple bottom-line accountingscrutinizing the
impact of any process on the planet, people, and profitswas introduced. I believe this
is a useful construct when thinking about how NEMA members embody the principles
of sustainability.
Planet: Environmental Sustainability
Our members products constitute the essential elements of the electrical world,
increasingly in transportation and dramatically in medical imaging systems. These
systems influence the capacity for repeatability, especially when they save energy in
homes, buildings, and industrial facilities or integrate renewable energy generation.
Beyond supporting energy efficiency, renewable energy, and an electrified transportation
sector, the NEMA community strives to satisfy the needs of todays society while
preserving and protecting resources for future generations.
People: Social Sustainability
NEMA manufacturers value their customers, employees, and other stakeholders in two
important ways. First, they drive local economies and global industries by employing tens
of thousands of people in well-paying jobs that allow families and communities to thrive.
Second, medical imaging and radiation therapy technologies play a nearly irreplaceable
role in healthcare by enabling the accurate and early diagnosis and treatment of disease
and injury. As with other electrical products, this enriches quality of life for billions of
people around the world.
Profit: Financial Sustainability
All companies seek financial sustainability and their investors require it. Without
profit, there would be few incentives to develop innovative technologies and even
less investment. Large and small, our members stand out as leaders in research and
development. Financial sustainability ensures that NEMA members can continue to
make advancements in the energy- and life-enhancing technologies that contribute to
broader social wellbeing.
Whether or not companies integrate triple bottom-line accounting formally into their
corporate fabrics, when measured against these three attributes, NEMA members deserve a
salute for the progress they have madeand continue to makefor a sustainable future. ei
Kevin J. Cosgriff
President and CEO

NEMA electroindustry March 2016

View from the Hill


Updating and Modernizing Our Nations Energy Policies

Sen. Lisa Murkowski (R-AK), Senate Energy and Natural Resources Committee Chairman

Now, we are exporting liquefied natural


gas and, as of the New Year, we have
the ability to export American crude
oilreflecting a change in federal energy
policy that was put in place over 40 years
ago. This drastic change in our energy
landscape underscores the need to
update and modernize our
nations energy policies
in order to keep energy
abundant, affordable,
clean, diverse, and secure.

states to directly invest in energy


efficiency, renewable energy, and energy
emergency preparednessamong other
key programs.
Increasing energy efficiency and
promoting innovation of new energy
technologies go hand in hand. The good
news is that the United States is a global
leader in innovation. The most successful
innovations give us more energy, reduce
the amount of energy that we use, and
lower the costs of energy usage; and
the best way to promote innovation is
through responsible federal policies.

Increasing energy
efficiency and innovation
are great places to
start. Increasing energy
efficiency not only
reduces energy usage but
also reduces the costs of
energy for the end user.
My broad, bipartisan
energy bill, the Energy
Policy Modernization Act
of 2016 (S 2012), includes
provisions aimed at
Senator Murkowski, Senate Energy and Natural Resources Committee Chairman
increasing efficiency in
building codes, federal
buildings, and schools, while directing
In the Energy Policy Modernization
each federal agency to reduce energy
Act, we make sure that the federal
usage, to name a few.
government is a partner in progress to
energy innovation. The Department of
But it doesnt end there. Increasing
Energy has played an important role in
energy efficiency requires a skilled
promoting innovation. Key programs
workforce to put in place new energy
like Advanced Research Projects
efficiency technologies. My broad,
Agency-Energy (ARPA-E), which
bipartisan energy bill would make career
makes investments in ideas that are too
skills training a priority.
early for private-sector investment, are
transforming the energy sector.
It would promote energy-efficiency
efforts to allow low-income families to
The bill also supports innovation in
reduce their energy bills while allowing
a number of areas: energy efficiency,

NEMA electroindustry March 2016

storage, and distribution; vehicles,


hybrid microgrid systems, and recycling;
geothermal power; marine and
hydrokinetic energy, and many other
developing technologies.
My home state, Alaska, is an example
to the rest of the world when it comes
to energy innovation. Innovation is
essential to moving rural communities
off diesel and onto more sustainable,
locally generated, and less-expensive
energy systems. Alaska is bringing
innovative technologies to communities
around the state through a variety of
state-run programs
largely financed by the
revenues derived from
our oil production.
Whether it is through
federal research and
development, state
programs, or private
capital, promoting
innovation and energy
efficiency are clear
ways to lower energy
costs and realize a
future with cleaner air
and cleaner water.
The broad, bipartisan
energy bill that I
developed with
colleagues on the Senate Energy
and Natural Resources Committee
would make efficiency and innovation
priorities while putting in place
measures to improve energy supply
and infrastructure. The Energy Policy
Modernization Act is an important
step forward to ensuring that our
nations energy resources are abundant,
affordable, clean, diverse, and secure for
generations to come. ei

Take Action!

Its been almost a decade since the


Senate considered a broad energy bill.
But in that same timeframe, our nations
energy landscape has gone through a vast
transformation. What were conversations
of energy scarcity have turned into
conversations of energy abundance.

Contact your senator to support the Energy


Policy Modernization Act, S 2012 .
Visit www.nema.org/support-the-energy-policymodernization-act

Government Relations Update


NEMA Expert Testifies at FERC Technical Conference on Supply Chain Security
NEMA Industry Director Steve Griffith
addressed staff and commissioners of the
Federal Energy Regulatory Commission
(FERC) at a technical conference on
critical infrastructure protection supply
chain risk management on January 28.
Mr. Griffith spoke about the efforts of
electrical manufacturers in establishing
consensus guidelines and best practices
that address the supply chain integrity
of electrical products used as part of the
bulk power system.
As the manufacturers of critical grid
equipment, NEMA members play an
important role in strengthening the
cybersecurity of the electric sector
supply chain. Electrical manufacturers
understand that a secure supply chain
is essential to a secure grid and that
cybersecurity features should be built
into, not bolted onto, manufacturers
products, Mr. Griffith said. They also
understand that managing cybersecurity
supply chain risk requires a collaborative
effort and open lines of communication
between electric utility companies and
the manufacturers of critical electrical
grid systems and componentsboth
hardware and software.

end of life. These best practices were


published by the NEMA Cybersecurity
Task Force as NEMA CPSP 1-2015 Supply
Chain Best Practices (available at www.
nema.org/Supply-Chain-Best-Practices).
Mr. Griffith also noted that electrical
manufacturers support voluntary
industry consensus standards and
guidelines (such as Supply Chain Best
Practices) to address cybersecurity
and supply chain risks, and at this
time NEMA does not believe there is
a need for FERC to adopt mandatory
reliability standards for manufacturers
supply chains.

NEMA Industry Director Steve Griffith spoke at a FERC conference


about the efforts of electrical manufacturers in establishing
consensus guidelines and best practices that address supply chain
integrity. Photo by Patrick Hughes

Other participants in the FERC


Technical Conference included NEMA
member Schweitzer Engineering
Laboratories, electric utilities, grid
operators, federal agencies, information
and communication technology
companies, and security firms. ei

Mr. Griffith highlighted the efforts of


electrical manufacturers in establishing
guidelines and best practices that address
U.S. supply chain integrity throughout
the four stages of a products lifecycle:
manufacturing, delivery, operation, and

Patrick Hughes, Senior Director,


Government Relations and
Strategic Initiatives, NEMA |
patrick.hughes@nema.org

Californias Performance Standards for LEDs Represent Potential Step Backwards


On January 27, 2016, the California
Energy Commission (CEC) adopted
performance standards for light-emitting
diode (LED) lamps that some believe are
too aggressive and may hamper adoption
in the state after implementation in 2018.
NEMA staff and members testified
before the commissioners on January
27 that the standards, based more on
visual appearance than energy efficiency,
represented a potential step backwards.
NEMA Lamp Sales Index reports,
available on the NEMA website, clearly
demonstrate a sharp increase over the
past 12 months in LED lamp sales,

to the tune of 237 percent over 2015


and rising. This was caused by strong
industry efforts to balance price and
performance options.
Widespread national adoption for
LED lamps did not begin to grow
noticeably until the industry achieved
good performance in the $10 range.
Today, satisfactory sub-$5 products
are widely available, which puts the
purchase price of LED lamps on par with
incandescent halogen products, their
strongest competitor.

increase as a result of the increased visual


performance requirements for color
appearance. The same analysis admits
that the California-preferred lamps are
less energy-efficient than todays most
popular designs.
NEMA supports energy efficiency and
the preservation of consumer choice
options for performance and price. ei
Alex Boesenberg, Manager,
Government Relations, NEMA |
alex.boesenberg@nema.org

The CEC admits in its analysis that the


price of lamps in California is likely to

NEMA electroindustry March 2016

Government Relations Update


Net Metering Rules Evolve in Solar-Rich States
The price of solar photovoltaic systems
fell by more than 50 percent between
2009 and 2014, and annual solar
installations in the U.S. increased by
approximately 1,100 percent over the
same time period.1
This solar boom has been fueled by three
primary drivers: falling equipment and
installation costs, federal and state tax
credits and rebates, and net metering.
The thirdnet meteringallows utility
customers in 45 states to sell excess solar
power back to the utility at the retail rate.
This mechanism has come under
scrutiny by a number of state utility
regulators as they seek to adapt utility
regulations to a more modern electric
system. California, Nevada, and
Hawaii are among the most recent
states to reexamine their existing net
metering policies.
California
On January 28, 2016, the California
Public Utilities Commission voted
32 to uphold the states net-metering
policy at the retail rate, at least until
2019. California did change the rules to
allow for a one-time interconnection fee
(approximately $75$150); a minimum
bill charge; non-bypassable charges of
$0.020$0.023/kilowatt-hour (kWh) to
fund low-income, energy-efficiency, and
other public-benefit programs; virtual
net metering for residents of multifamily
buildings; and mandatory time-of-use
rates for new net-metering customers.
Existing net-metering customers can
retain their current rate for 20 years from
the date of their interconnection.
Hawaii
On October 12, 2015, Hawaii ended
its net-metering program for new
customers, although existing customers
will retain their previous net-metering
arrangement.
www.seia.org/research-resources/solar-industry-data

NEMA electroindustry March 2016

New solar customers now have two


choices: self-supply or grid-supply.
Under the self-supply option, residential
and commercial customers will not
be credited for exporting excess
solar generation to the grid and will
have minimum bills of $25 and $50,
respectively. The grid-supply option will
offer customers a fixed rate of $0.15
$0.28/kWh for generated electricity
(residential retail rates in Hawaii
averaged $0.37/kWh in 2014).
As solar costs continue to drop and
behind-the-meter installations continue
to rise, additional states are likely to
revisit their net-metering rules in the
coming months and years. How these
rules are set will determine the number
of solar installations and, by extension,
the NEMA members products installed
to support solar systems.
Nevada
On December 22, 2015, the Public
Utilities Commission of Nevada
(PUCN) unanimously approved revised
net-metering rules for new and
controversiallyexisting customers

that would increase monthly charges,


prompting major solar installers
SolarCity and Sunrun to announce
that they were ending their operations
in Nevada.
On February 12, 2016, the PUCN
reaffirmed their decision but extended
the timeline for instituting the changes
from four to 12 years. Now, the new rules
will impose a fixed charge that will rise
from $12.75 to $38.51 by 2028. The new
rules will also decrease the rate paid to
net-metering customers from the retail
rate to the wholesale rate (a reduction
from $0.11 to $0.09/kWh, progressively
falling to $0.026/kWh in 2028).
This controversial decision has drawn
criticism from both political parties,
including Governor Brian Sandoval
(R-Nevada) and Democratic presidential
candidates Hillary Clinton and Bernie
Sanders. A legal challenge of the decision
is expected. ei
Patrick Hughes, Senior Director,
Government Relations and
Strategic Initiatives, NEMA |
patrick.hughes@nema.org

Final Version of Chinas Restriction of Hazardous Substances Regulation Now Available


Changes to the product design and
labeling restrictions embodied in the socalled China Restriction of Hazardous
Substances (RoHS) regulation came a
little closer to reality on January 21 with
the publication of the Administrative
Measures for the Restriction of the Use of
Hazardous Substances in Electrical and
Electronic Products (known as China
RoHS 2) by the Ministry of Information
& Information Technology (MIIT).

This rule represents Chinas version of


the European RoHS Directive, enacted
initially in the EU in 2003 and recast 8
years later. Chinas approachexpressed
as management methodsgenerally
tracks with the European Directive,
but there are notable differences. The
Chinese rule is principally a substance
declaration measure, imposing marking
requirements with information needed
for product recycling purposes.

According to an unofficial English


translation, the rule will take effect
July 1, 2016, at which time the original
China RoHS of February 2006 shall be
rendered null.

In addition, the scope of China RoHS 2


remains unclear. MIIT has indicated that
hazardous material thresholds similar to
those under European Union RoHS will
apply to a catalogue of electrical and

electronic products, but the catalogue


has not been released.
Additional guidance on compliance
with the new rule will be provided in a
frequently asked questions document,
but there has been no indication from
MIIT as to when that document will
be available. ei
Mark Kohorst, Senior Manager,
Environment, Health & Safety, NEMA |
mark.kohorst@nema.org

Redo of California Prop 65 Proposed Rule Still Troublesome


In November 2015, after nearly a
year of stakeholder consultations
and commentary, Californias Office
of Environmental Health Hazard
Assessment (OEHHA) surprisingly
withdrew its proposed rule changes for
Proposition 65 and issued a new draft for
public review.1
NEMA members are among the many
industry sectors closely watching this
rulemaking and urging OEHHA to
limit any expansion of Proposition
www.oehha.ca.gov/prop65/CRNR_notices/
WarningWeb/2NPRArticle112715.html

65s burdensome impact on product


suppliers, retailers, property owners, and
other regulated parties.
The only state program of its kind,
Proposition 65 allows for private
enforcement of its warning requirements.
This has spawned an industry of
plaintiffs attorneys who file legal action
against companies for failing to warn
or providing inadequate warnings. The
cases often end with manufacturers
paying exorbitant settlement fees to avoid
lengthy court proceedings.

A review of the new proposal reveals


some improvements over the earlier
version that was withdrawn, but
significant problems remain and
NEMA joined a long list of companies
in submitting comments on the draft.
Expectations are that OEHHA will issue
the final rule in early fall of this year,
with manufacturers required to comply
two years after the date of adoption,
in 2018. ei
Mark Kohorst, Senior Manager,
Environment, Health & Safety |
mark.kohorst@nema.org

Trade Facilitation and Enforcement Act Includes Single Window System


Recent passage by the Senate of
compromise legislation to reauthorize
the trade functions of U.S. Customs and
Border Protection (CBP) will facilitate
timely processing of lawful trade by
providing the agency with greater
authority and more tools to prevent the
importation of products that do not
conform to U.S. requirements.
Specifically, the Trade Facilitation and
Trade Enforcement Act authorizes CBP
to work with U.S. regulatory agencies,

including the Department of Energy,


to implement the single-window
approach to the electronic filing of trade
documents. The bill also contains a key
provision that specifically permits CBP
to work with U.S. manufacturers to
prevent the importation of products that
violate intellectual property rights.

opportunity to reduce costs for U.S.


electroindustry manufacturers. This
provision, if enacted, fairly recognizes
that manufacturing components
that are unavailable from domestic
sources should not be penalized with
a duty charge. ei
Craig Updyke, Director, Trade
and Commercial Affairs, NEMA |
craig.updyke@nema.org

Despite these positive aspects, the


compromise excludes a reform and
renewal of the import duty suspension
process. This represents a missed

NEMA electroindustry March 2016

Gold Medallion Homes Bespeak Decades of


Energy Efficiency
Pat Walsh, Editor in Chief, NEMA

he year was 1957. The place, new suburbia. The event, the dawn of the
Gold Medallion Home. Welcome to the all-electric generation.

NEMA, which at the time included appliance manufacturers


in its membership, created the Gold Medallion Home Program
to identify and promote all-electric domiciles as the epitome
of modern life. Trademarked 10 years later, the premise was
simple: using a lot of electricity would stimulate the demand
for home appliances, make them more affordable, benefit
manufacturers, and ultimately help the country prosper.
As mid-century America boomed and power plants
proliferated, the cost of electricity went down. Gone were the
Great Depression and World War II; in their place were years
of promise and affluence. Elvis rocked, President Kennedy
promised to put a man on the moon, and electricity was cheap.
Previously existing houses were stigmatized by coal- and oilburning furnaces, which were neither clean nor economical.
In contrast, Gold Medallion Homes were both. All electric,
from baseboard heaters to appliances, with plenty of electrical
receptacles in between, they were forward-looking and sleek.
Entire neighborhoods were planned and built with medallion
homes as the standard.
Utility companies and appliance manufacturers
profited by encouraging homeowners to
consume more power by buying more
electrical products. To maintain this
high demand, the electroindustry
launched Live Better Electrically
(LBE), an effective mass
marketing campaign that
was supported by electric
utilities and major electrical
manufacturers. Its goal
was simple: encourage
homeowners to consume
more electricity.

Cindy and Paul Molitor of Retro Revival pose with a Gold


Medallion Home plaque in front of a mid-century home.
Photo by Pat Walsh

Provide prospective homebuyers with


a recognized symbol of electrical
excellence
Raise electrical standards in new
construction

Medallions, usually affixed


next to the doorbell, branded
mid-century all-electric homes.
Using the Gold Medallion Home
model, LBE had several aims:

Help builders sell homes by promoting


the benefits of electrical living
Show existing homeowners features and fixtures
that could be used in their present homes
Photo by Ann Brandstadter

NEMA electroindustry March 2016

Upgrade existing home electrification

New Era of Sustainability


Gauging Success
To earn a gold medallion, a house had to be solely sourced
with electricity for heat, light, and power; have full 150-ampere
service with a specified number of outlets and switches per
linear foot; and include specific appliances like an electric range,
refrigerator, and even air conditionercustomary now, but
revolutionary then.
Those of a certain age might recall Queen for a Day, arguably the
first reality television show. Indicative of the social value placed
on electrical appliances, it pitted four women against each other
to compete for prizes based on hardscrabble lives pockmarked
by misfortune, disease, and desertion. The audience would
determine who demonstrated the most dire straits by means of
an applause-o-meter. In addition to a sable-trimmed velvet
robe, bejeweled crown, and bouquet of long-stemmed red roses,
the winner invariably would take home a washer and dryer,
home range, or other appliance approved under LBE guidelines.
Losing contestants got smaller prizes, such as toasters. Sponsors
included the major appliance manufacturers, of course.
According to the Edison Electric Institute, LBE was a huge
success. By some estimates, the nationwide goal of one million
Gold Medallion Homes was achieved, although actual data
is unavailable.
Today, all-electric homes reflect not a decreased appetite for
electricity, but a hunger for abodes that are energy-efficient,
internet-connected, and sourced from renewables. Welcome
to the new generation of all-electric sustainability. ei
Ms. Walsh is the director of publications at NEMA.

Appliance efficiency
has increased
remarkably over the past several decades. Three
products (clothes washers, central air conditioners, and
refrigerators), show a 50-percent or greater reduction
in energy use over that period, and a fourth product,
gas furnaces, shows a smaller but still significant
reduction of 18 percent.

What the industry is saying:

The decline in energy use parallels the rise of appliance


efficiency standards, first at the state level, and then
at the federal level. The Department of Energy sets
minimum energy and water efficiency levels for
household and commercial appliances, equipment,
and lighting, creating savings for consumers and
businesses.

From Gold to Premium


The success of the medallion homes led to the NEMA Premium
programs. While the products are different, its goal is to stimulate
demand for electrical products that will save consumers money by
increasing efficiency.
The NEMA Premium motors program provides highly energy-efficient
products that meet the needs and applications of users and original
equipment manufacturers based on a consensus definition of premium
efficiency. Instead of a gold medallion, it uses the NEMA Premium logo.
It is estimated that the campaign saves 5,800 gigawatts of electricity.
This translates to preventing the release of nearly 80 million metric
tons of carbon dioxide into the atmosphere over the next 10 years
equivalent to keeping 16 million cars off the road.
The NEMA Premium Efficiency Transformer Program helps utilities,
commercial buildings, and industrial plants incorporate super highefficiency electrical transformers into their operations. It is based on
NEMA TP 1-2002 Guide for Determining Energy Efficiency for Distribution
Transformers, a standard that was adopted by the U.S. Department of
Energy as the national energy-efficiency rule for low-voltage dry-type
distribution transformers.
On the other hand, the NEMA Premium Electronic Ballast Program was
so successful that it has been retired. The federal government applied the
premium specifications for T8 fluorescent ballasts as the new minimum,
thus eliminating its need.
The Premium Exit Sign Program stands apart from other NEMA Premium
programs in that it establishes standards for and encourages the use of
high-performance exit signage and does not focus strictly on energy
efficiency. Instead, its goal is to increase visibility and attract attention.
By creating higher minimum standards in homes, businesses, and
industry, we have gone from all electric to all efficiency.

American Council for an Energy-Efficient Economy

NEMA electroindustry March 2016

Greg Galluccio and Dixie Comeau walk the property where


their net-zero home will be built. Photo by Becca Tucker

Net-Zero Home Embodies the New Era


of Energy Efficiency
Greg Galluccio, Vice President, Engineering and Product Management, Maxlite
Dixie Comeau, President, Dixie Comeau Consulting Inc.

uring a recent meeting at the NEMA conference center on emerging


technologies, I mentioned the net-zero, 2,600-square-foot home my
wife, Dixie Comeau, and I are building. The editor of this magazine asked me
to describe the project, which is just getting underway this spring. This is the
first installment of a series that chronicles a new model of the old campaign,
Live Better Electrically.

It is our belief that we can live well and still treat the planet
appropriately by using sustainable building materials, capturing
energy from the sun and the wind, and taking care to keep our
carbon footprint small.

10

NEMA electroindustry March 2016

We are in the process of building a home from a reconstructed


post-and-beam barn on a seven-acre plot in Warwick, New
York. The barn, which was built in 1860 in Bolton, Ontario,
has been dismantled, fumigated, and warehoused. Our plan is
to erect the barn on the property and turn it into an energyefficient, environmentally friendly space where we can live and
work and become an integral part of the community.
Barns conjure images of soaring ceilings and drafty gaps
between sideboardsnot the ideal space for energy efficiency.
We intend to blend the beauty of this post-and-beam structure
with state-of-the-art insulating building materials. These

New Era of Sustainability


We are also exploring some human safety features that are not
as well known to the public, such as distributed direct current
(dc) electrical power for lighting and small appliances. Finally,
were employing a robust battery system that will power the
home when the public utility grid is operating at peak power or
when the grid is down completely.
We plan to include a number of sustainable technologies:
LED lighting and controls
DC systems where possible (USB-powered appliances,
Power-over-Ethernet lighting)
Solar (photovoltaic) power with DC battery backup
The energy-efficient barn will showcase all the luxuries of a modern home that uses only the electricity
the homeowners generate. Drawings by architect Joe Irace

include structured insulated panels and packed cellulose wall


construction to create a high-performance, low-energy living
space. When were done, the barn will essentially be a sealed
structure, which can be heated and cooled using an HVAC
system that traditionally would have struggled to handle a
tiny cottage.
Net-zero philosophy goes beyond energy usage. This house
will showcase how one can minimize or even neutralize
environmental harm and still enjoy all the luxuries of a good
sized, modern home. In addition to using only the electricity
we generate, we will incorporate sustainable building materials,
reclaim water, and take every precaution not to release carbon
into the atmosphere or the ground.

Geothermal radiant heating and cooling with split-system


air assist
Packed cellulose wall construction
Smart thermostat controls
Tankless hot water systems
Construction begins in early spring, and we will share our
journey with ei as we go. We anticipate continual testing,
rethinking, and refining throughout the processand we
would love to share it with others who are considering a similar
journey or who have something to offer to the quest. ei
Mr. Galluccio is a member of the NEMA Internet of Things
Council and ANSI ASC 137 Lighting Systems Committee.

Follow the progress on the house at www.netzerobarn.com

NEMA electroindustry March 2016

11

Clean Power Plan Presents Challenges and


Opportunities to De-carbonize the Grid
Rodney Durban, Director, Clean Air Initiative, ABB Inc.

t NEMAs founding 90 years ago, NEMA members could not have


envisioned many of the thorny issues that occupy so much of our
attention in 2016. Indeed, climate change to a 1920s audience might have
sounded straight out of science fiction.
With the UN Conference on Climate Change concluding in
Paris in December, the Environmental Protection Agencys
(EPA) Clean Power Plan (Carbon Pollution Standards for
Existing Power Plants, or CPP) seems less like a radical
departure from environmental regulations in the U.S. and more
like evidence that the U.S. is committed to doing its part to
reduce greenhouse gases.
On February 9, 2016, the Supreme Court reversed a federal
appeals court decision from weeks earlier by halting
implementation of the CPP while it is being debated. While this
means states are no longer required to keep compliance plans on
course and progressingfor nowsome will continue to do so
anyway. Regardless of the final outcome of the CPP legal battle,
it seems clear that a critical mass of agreement around the world
has been reached with respect to de-carbonizing our energy
supply chain.
In the draft rule of the CPP, the EPA seemed to be setting up
a dash to gas with directives on the capacity factor of loweremitting generation sources. However, in the final rule, there
seems to be a belief that it is better to skip the bridge-fuel step to
the greatest degree possible and go to the zero-emitting sources.
Because of this realization, EPA built in stronger incentives
to bring more wind and solar online during the 20202022
timeframe.

12

NEMA electroindustry March 2016

Chart 1 on page 13 shows the trends in regional resource mix


from 2005 to the first year of our forecast in 2016 and the last
year of a 25-year forecast in 2040. Resources by primary fuel
types were measured in gigawatts by regions: Electric Reliability
Council of Texas (ERCOT), Midwest (MW), Northeast (NE),
Southeast (SE), and Western Electricity Coordinating Council
(WECC). Source: ABB Velocity Suite, EPM Advisors
For many NEMA members, these additional wind and solar
farms present unique business opportunities, from electrical
transmission and distribution to grid interconnection and
remote monitoring and operations. Of course, in many cases,
the sun shines brightest and the wind blows hardest in remote
areas far away from consumers of the electricity produced.
In those cases, there will be a need for efficient methods of
transporting poweran application ideally suited for highvoltage direct current (HVDC) transmission projects.

Optimizing Control
In addition to the application of HVDC for bringing renewable
power to load centers, there are a number of technologies and
practices that can be used on the lower voltage distribution
portion of the grid to conserve energy.
Because of improvements in monitoring and control systems, it
is possible to dynamically manage voltage on the distribution
grid in a way that minimizes the amount of power required to
keep everything stable. This approach is known as conservation
voltage reduction, or volt/VAR optimization. The proliferation
of faster control networks and more powerful modeling
computers are making this sort of real-time optimization
control possible today.

New Era of Sustainability


Coordinating Distributed Energy Resources
We are also seeing the expansion of distributed energy
resources, or grid-edge technologies:
Demand response, such as direct load control
and time-of-use rates
Distributed generation and storage systems that include diesel
back-up generation, combined heat and power applications,
solar photovoltaic, battery energy storage, and flywheels
Electric vehicle charging infrastructure that supports
electrification of transportation with scheduled charging
Microgrids, which add grid resiliency and help manage
the dispatch of renewable generation by combining storage
with renewables
Power electronics such as smart inverters and dynamic
regulating transformers to help manage feeder voltages and
reactive power flows
Market platforms that engage distributed energy resource
asset owners with sustainable incentives

Applying New Technologies


A broader adoption by industry of high-efficiency motors and
variable-frequency drives, for instance, would amount to a
significant reduction in greenhouse gases.
Unfortunately, there are losers in the de-carbonization
of the grid.
It is not likely that new coal-fired power plants will be
constructed in North America, and many of the currently
operating coal-fired power plants will be retired, hurting
construction companies and coal-mining firms..
However, even in these losses, there are opportunities to apply
relatively new technology that makes the grid smarter and
more controllable. As power plants close to load centers are
retired, utilities can exercise options to bring in power from
more distant sources, facilitated by devices such as static VAR
compensators (SVCs) that maintain an appropriate ratio of real
and reactive power to ensure stability. SVCs run quietly and
dont consume any power, so they are ideal for siting in urban
areas where grid stability is an issue.

These resources can


help mitigate some
of the impact of the
CPP if distributed
generation and the
other distributed
energy resources
can be coordinated
with centralized
generation and
transmission.
Further, in spite of
the fact that end-use
energy efficiency
was removed from
the calculation of
state-by-state goals,
the EPA has made
it clear that energy
efficiency remains an
Chart 1. North American Resource Mix by Primary Fuel Type (GW)
eligibleand lowcostcompliance
mechanism. NEMA Government Relations has led an industry
and non-governmental organization effort to bring more
attention to not only the market-based value of energy efficiency
but the ways in which states should structure their compliance
plans to put non-utility energy efficiency investments (i.e.,
privately funded industrial efficiency projects) on level footing
with the other types of investments.1

For coal plants that


do survive, there
will opportunities to
improve efficiency
by lowering heat
rate values through
better measurement,
better control,
and combustion
optimization.
For the most part,
the transition to
a lower-carbon
economy will present
more opportunities
than challenges
for ABB and other
NEMA members.
Its safe to say that
many of the issues
NEMA is tackling
in todays industry would have been completely unforeseen in
1926. But what is as recognizable now as then is our industrys
commitment to ensuring safe and reliable power, whatever
the challenge. ei
Since 2012, Mr. Durban has led ABBs Clean Air Initiative in the
U.S., an initiative formed in response to changes in air regulations
and the fundamental landscape of fossil energy production.

www.nema.org/Comments-EPA-Energy-Efficiency

NEMA electroindustry March 2016

13

Energy Storage: The Role Energy Storage


Plays in a High-Renewable Energy Future
Garrett Fitzgerald, PhD, Senior Associate, Rocky Mountain Institute

ith Tesla announcing a home battery that uses electricity generated


from solar panels, the German company Sonnenbatterie entering the
U.S. market, and massive grid-scale storage projects popping up in Hawaii
and California, 2015 was the year of the battery.

It also happened to be the year of the first global commitment


to address climate change. COP 21 (also known as the Paris
Climate Conference) was a momentous step in the effort to
address climate change on a global scale.
As the world moves aggressively toward a high-renewableenergy future, the question remains, What will be the role of
energy storage in the next generation of sustainability? Answer:
It will be potentially huge and likely diverse. Heres why and
what you need to know about it.
This welcomed shift toward a renewable-energy future comes
with several operational challenges. Supply and demand
for electricity on the grid must always be balanced to avoid
disruptive and costly grid outages. For nearly a century, that
balance has mostly been achieved through flexibility on the
supply side (i.e., generation), which entails constantly ramping
dispatchable resources up or down to match demand.
Wind and solar generation are predictably variable and, as
their contribution to the grid grows, well need more flexibility
to integrate them reliably with conventional generation.
Fortunately, we are seeing a shift in the way flexibility is built
into the grid. Grid operators no longer rely only on centralized,
supply-side flexibility (e.g., dispatchable generators) but look
increasingly to distributed, demand-side flexibility (e.g., smart
thermostats, demand response, internet-connected appliances,
controllable electric-vehicle charging, and, of course, batteries).
Batteries have a special place in that mix because they can
act either as dispatchable supply or as controllable demand as
the grid requires, depending on whether theyre charging or
discharging. The nexus of the system is a powerful place to be.

14

NEMA electroindustry March 2016

Path to Success
Batteries recent rise in popularity and deployment primarily
stems from four developments over the past decade:
Deregulation of electricity markets: Deregulation has
created a market that allows storage and other distributed
energy resources to compete against traditional grid assets in
the wholesale market.
Parallel markets: The growth of battery electric vehicles
has accelerated the cost declines and performance gains of
lithium-ion batteries.
Aging infrastructure: The century-old electricity grid is in
need of a major overhaul. Energy storage can now contribute
in a meaningful way to the smart grid of the future.
Growing renewable market: Many new photovoltaic
(PV) installationswhether residential, commercial, or
industrialnow include onsite energy storage, allowing for
increased onsite consumption and providing a dispatchable,
carbon-free power source.
These developments have paved the way for the new generation
of sustainability, one in which energy storage is poised to play
an increasingly large and diverse role in the grid of the future.

The Role of Storage on the Grid


Rocky Mountain Institute recently published a report, The
Economics of Battery Energy Storage, which defines 13 services
in which energy storage can provide value to both customers
and the grid (see figure 1).
In this framework, we show how energy storage can be sited
at three different levels on the grid (behind the meter, at the
distribution level, or at the transmission level) and how it can
provide value to various stakeholder groups at each level. Of
these 13 services, only oneincreased PV self-consumption
is explicitly tied to renewable integration. However, many, if
not all, of the other services will be increasingly necessary
as renewable penetration grows and the need for grid
flexibility increases.

New Era of Sustainability


The Role of Storage in
Renewable Integration
Renewables such as wind and solar are occasionally subject
to abrupt changes in output, caused by changes in weather
conditionsfor example, a cloud passing over a large PV facility
or a sudden lull in wind speed. Adequate weather forecasting
can mitigate variability by making it more predictable, but
the first line of defense against this natural variability is
geospatial diversity. Installing PV and wind across a wide
geographic area can help minimize variability and ensure that
aggregated output is
relatively smooth.
Geospatial diversity
can only do so
much, however, and this is where
storage comes into play. Energy
storage can be used to quickly
and accurately respond to a
drop in variable generation
and so create a firm and
reliable clean-power
source. These shorttimeframe services are
generally categorized
as fast-ramping or
frequency regulation
services and are needed
to ensure the second-bysecond stability of the grid.

The role of storage in a high-renewables future can be boiled


down to three high-level types of services:
Ancillary grid services: Frequency regulation, voltage
control, and fast ramping response are required to ensure
stable grid operation in response to small-timescale (seconds
to tens of minutes) fluctuations in both demand and
generation.
Energy/demand shifting: Energy shifting services typically
operate over a longer time period and are used to align load
with renewable output or to shave peaks.
Increased self-consumption: Minimizing the
export of electricity generated from behindthe-meter PV systems increases the
financial benefit of solar PV in areas
where net energy metering is
not offered or for customers
with rate structures that are
unfavorable to onsite PV
ownership.

As The Economics of
Battery Energy Storage
showed, batteries
(especially customersited batteries)
can offer a lot to
customers and
utilities13
services,
in fact.
Continued
cost declines
Storage is also a valuable
will remain
resource to assist in longeran important
timeframe grid balancing,
piece of the
on the order of hours to days.
puzzle, but
Misalignment of hourly variable
leveraging the
generation and variable demand creates
full potential
the need to either generate electricity when
of batteries on the services and value side of
it is needed, shift when it is consumed, or
Figure 1. Areas in which energy storage provides value.
the equation will be equally important for the
store it for later use. Grid operators make use
continued integration of energy storage into
of all these methods today via dispatchable
the next-generation electricity grid.
generation, demand response programs, and storage
technologies, respectively.
As renewables scale up and the world tenaciously decarbonizes
the electrical grid, storage can be an important enabler. That
Previously, most forms of energy storage, other than pumped
2015 was the year of the battery was no fluke. Energy storage
hydro, have been too expensive to cost-effectively shift excess
is here to stay, and electrical manufacturing companies should
renewable production to times of high demand, so excess
look to the future with that in mind. ei
renewable production was typically curtailed. Recently, in light
of falling costs and improved controls and communication,
Dr. Fitzgerald focuses on innovative solutions to integrate
we are seeing more and more instances in which firming
distributed energy resources onto the electricity grid of the future.
renewables with storage is more favorable than curtailment.
His doctorate is in earth and environmental engineering.

NEMA electroindustry March 2016

15

DC Microgrids Gain Popularity


in Commercial Buildings
Robert Wills, PhD, President, Intergrid

ill direct current (DC) microgrids for commercial buildings be our


next billion-dollar industry? This question was discussed at NEMAs
Emerging Opportunities Forum at the NEMA Conference Center in January.

DC microgrids are the most efficient way to use DC electricity


from on-site power generation, such as photovoltaic (PV) and
fuel-cell power. Many loads now are DC in nature.
Microgrids have many definitions, but in general there is
agreement that a microgrid is a group of interconnected
loads and local generation that can act as a single controllable
entity. While alternate current (AC) microgrids are becoming
commonplace, as states and municipalities support them as a
solution to grid resiliency, DC microgrids are like a return
to the war of currents.

The War of Currents


In the late 1880s, Thomas Edison and Nikola
Tesla battled for the adoption of DC and
AC power distribution systems, with
Mr. Edison arguing that AC was
fundamentally more dangerous.
The war was won in 1886 when
Westinghouse began using
AC transformers to convert
electric power to high voltage for
transmission. Nowadays, with highvoltage power electronics, many utility
transmission links are direct rather than
alternating current.
In todays commercial buildings, with the exception
of some emergency lighting and uninterruptible
power source (UPS) systems, most electrical distribution
is alternating current. In the 1980s, researchers at the
University of Massachusetts Lowell experimented with PV
assisted lighting systems, where DC solar electricity was fed
directly to fluorescent ballasts. Backup for cloudy periods and
nighttime was provided by a rectifier from grid power.
A U.S. Department of Energy report from that time found
that these systems combine the efficiency of modem electronic
ballasts with the use of clean solar energy while avoiding the
cost, complexity, and unreliability of power conditioning
systems usually required to match PV to the utility grid. While
the concept held promise, it had not been implemented, until
recently, on a significant scale.

16

NEMA electroindustry March 2016

PV
DC

LED
Driver

LED Lamp

BALLAST

GRID

Gateway
AC

The reasons for slow adoption were a lack of cost-effective


generation and utilization equipment, few applicable codes and
standards, and the relatively low cost of grid electricity. All of
these have now changed. PV modules are available for $500/kW,
many loads are inherently DC-based, and electricity costs have
risen significantly.
The widest adoption of DC microgrids to date has been in
data centers (U.S. data centers account for about 20GW of
electric demand in the U.S.). Data center operators can increase
efficiency by up to 30 percent by feeding solar power to servers
without intermediate conversion to AC and back to DC.

Other applications for DC microgrids such as lighting and


HVAC are emerging, however. Bosch USA has installed a
real-world test system at a commercial warehouse in Charlotte,
North Carolina.
Two identical systems (in terms of photovoltaic
arrays and loads) feed building light-emitting
diode (LED) lighting and ventilation fans. One,
however, uses direct DC coupling, while
the other uses conventional conversion
to AC power. The DC microgrid
system, operating now for more
than a year, has nine-percent

New Era of Sustainability


lower energy costs, lower capital costs, and significantly higher
projected reliability.
It may not be obvious at first, but LED light ballasts operating
from 380 Vdc (volts of direct current) may have fewer parts and
are more reliable than their AC counterparts. In particular,
they do not need electrolytic capacitors, often the least reliable
components in electronic assemblies.
HVAC and pumping are also emerging applications for DC
power in buildings. As lighting efficiency improves, HVAC is
becoming the largest contributor to many building electric
bills. The efficiency gains from using variable frequency drives
(VFDs) for fans and pumps are widely known.
Most VFDs are two-stage devices: an AC-to-DC rectifier
followed by an output inverter. Most, with appropriate
certification, can be fed directly from DC sources. Direct DC
coupling in HVAC and water pumping systems can improve
the efficiency of solar electric utilization by five percent, while
eliminating the cost of the solar inverter.
Barriers are also falling in the codes and standards area.
Proposals for DC microgrid requirements in the next edition
of the National Electrical Code (NEC) were accepted last year.
Electrical designers and inspectors will be able to turn to a new
Article 712 (DC Microgrids) in the 2017 edition of the NEC.

Bosch USA installed a real-world test system at a commercial warehouse in


Charlotte, North Carolina. Photo courtesy of Bosch

Building Resiliency
DC microgrids can also improve buildings resiliency to utility
power loss. DC microgrids lend themselves to integration of
battery storage on the bus, so emergency and backup power
functions can easily be added. There are, however, code issues
related to legally required emergency power systems; NEC
Article 700 is based on the technology of generators and
transfer switches. We might have to wait until the 2020
NEC before DC microgrids become an acceptable
alternative.
Other barriers for implementation include
DC wire marking requirements, per
NEC 210.5(C)(2), and fault-current
requirements for DC branch circuit
breakers. The former is addressed
in the 2017 NEC. Fuse and circuit
breaker manufacturers are now
developing solutions for overcurrent
protection in 380 Vdc systems.
Will DC microgrids become a billiondollar business? If they do, there will be
opportunities for manufacturers of inverters,
switchgear, wire and cable, DC appliances and
luminaires, energy storage systems, IT power
supplies, EV charging stations, VFDs and
HVAC equipment, and more. ei
Dr. Wills led the NEC working
group that created Article 712 DC
Microgrids for the 2017 NEC.

NEMA electroindustry March 2016

17

Putting Sustainable Energy to


Work in the Developing World
Robert Freling, Executive Director, Solar Electric Light Fund

ore than one billion people around the world do not have access to
electricity. Given their remote, sparsely populated locations, the
majority will probably never be connected to a major power grid. Without
electricity, most lack access to modern education, effective healthcare, food
and water security, and economic opportunities. In an effort to balance this
injustice, the United Nations (UN) designated as one of its 2030 sustainable
development goals to ensure access to affordable, reliable, sustainable and
modern energy for all.
The Solar Electric Light Fund (SELF), a non-profit organization
based in Washington, D.C., has been working toward that same
goal for 25 years in rural villages in more than 20 of the worlds
poorest countries. Providing access to sustainable energy alone
does not guarantee a communitys sustainability. Sustainability
has to be systemic.
When SELF delivers a solar installation, we concentrate on
training and capacity building to ensure that the community
can maintain it. Concurrently, we develop innovative energy
applications and economic models that use the electricity
to transform poor communities, putting them on a path to
sustainability. Access to electricity is certainly a catalyst,
but ultimately it is the power of people that determines their
quality of life.
A case in point is SELFs Solar Market Garden (SMG)
initiative, recently showcased by the UNs Momentum for
Change program at COP 21 (also known as the Paris Climate
Conference) this past December. The SMG project combines
solar water pumps (typically powered by 1-2 kW photovoltaic
systems) with drip irrigation to provide a cost-effective,
environmentally friendly way to pump water for irrigation from
underground aquifers.
The solar concept came about when we proposed to bring solar
electricity to the Kalal districtof Benin, in sub-Saharan Africa.
The local people, suffering from malnutrition and hunger, said
they needed food more than lights. Sustainable energy meant
nothing to them if it couldnt deliver what they needed to
survive. We took on the challenge of figuring out how to use

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NEMA electroindustry March 2016

solar power to overcome the difficulties faced by women farmers


when, every year, a six-month dry season prevents them from
growing enough food to feed their families.
To date, there are 11 half-hectare-sized SMGs in the Kalal
district, with 30 to 40 women working in each. One garden
supplies two tons of produce monthly. Twenty percent is for
home consumptionimproving family nutrition and health
across the board. The balance is sold at market, generating a
profit of $7.50 weekly for each woman vendor.
Everyone is expected to put a small percentage of their income
into a fund that sustains the operation of the gardens. The
balance helps pay for childrens school fees and healthcare. We
recently learned that the women have been investing some of
their earnings from the gardens in livestock to generate a new
revenue stream. Having had no status in their community until
the SMGs came along, the women farmers are now regarded
as savvy entrepreneurs who grow enough food from the 11
gardens to sustain more than 66,000 people. As new support is
identified, the organization will bring gardens to more of the
32 remaining villages in Kalaland, ultimately, other parts of
sub-Saharan Africa.

Haiti Embraces the Sun


Sustainability in Haiti is a different story. Since the devastating
earthquake in 2010, photovoltaic (PV) installations have
grown tremendously in that country. SELF, one of the leaders
in this movement, initially brought solar power to hospitals,
clinics, and schools. It has since expanded its work in Haiti
to include specialized solar applications: a micro-enterprise
center, two microgrids, a solar-powered fish farm, solarpowered vaccine refrigeration, and two SMGs. In addition to
SELFs work, more solar projects are being installed throughout
the country by other non-governmental organizations and
commercial enterprises.
Its gratifying to see Haiti embrace the power of the sun to help
in the countrys recovery, but there has been a missing piece to
the puzzle. Local people need technical training so they can help
build and take responsibility for their new solar infrastructure
and enjoy the employment benefits that result from it.

New Era of Sustainability


In response to this need, SELF has created Haitis National Solar
Training Center (NSTC) in partnership with the Centre de
Technologie Moderne dHaiti (CETEMOH) in Port-au-Prince.
CETEMOHs mission is to provide Haitians with high-quality
academic and technical training programs. SELF has the
solar-power expertise to design the curriculum and provide
instruction in the classroom and extensive training in the field.
Together, the two organizations will prepare students
for jobs that will maintain their nations new PV
infrastructure and help develop Haitis economy.
The NSTC will offer two- and three-year
degree programs to its students. There
will be a strong emphasis on handson learning to allow program
graduates to be immediately
employable, without
having to go through
long apprenticeships
or post-graduate onthe-job training. In
addition, basic PV
courses designed for
use in other vocational
training schools in Haiti
will be offered through

the NSTC. It is expected that the school will begin classes in


September 2016.
While the NSTC is specifically designed for Haiti, we believe
it is a model that can be replicated throughout the developing
world, providing exponential benefitslike many of SELFs
other projects. We know that sustainable, solar energy is the
engine that drives our agenda to make a difference in the
developing world.
But its just the engine. Its up to us to steer our work
in the direction that will help the most people
achieve a better quality of life.
To learn more about SELF, visit
self.org. ei
Mr. Freling has spent more
than 20 years fighting
energy poverty in the
developing world.
SELFs Solar Market Gardens provide women
farmers in Benin, Africa, the ability to feed their
families while generating an income. It also
provides technical training to Haitians so they can
sustain their countrys growing solar infrastructure.
Photos courtesy of SELF

NEMA electroindustry March 2016

19

Recycling Revisited
Mark Kohorst, Senior Manager, Environment, Health, and Safety, NEMA

n business, as in life, the one constant you can count on is change. This is as
true with respect to sustainability as to any corporate initiative or value.

Some changes are more predictable than others, however. In the


who wouldve guessed it category, it appears the developed
worlds love affair with recycling is showing serious signs of
abating. The economic and environmental incentives that have
made recycling an imperative in modern society are no longer
accepted without question.
Last fall, for example, the New York Times printed John
Tierneys long-awaited update of a piece he wrote in 1996
entitled Recycling Is Garbage. That original article was
a lengthy, well-sourced expos of uncomfortable realities
associated with recycling municipal garbage and a growing list
of designated products.
The article set quite a few hairdos on fire in the environmental
community, with statements such as Recycling may be the
most wasteful activity in modern America: a waste of time and
money, a waste of human and natural resources. Reactions to
the piece were broad-based and intensenot surprising given
the emotional, political, and economic investments that society
had poured into recycling by the mid-1990s.
Yet in his follow-up article two decades later, Mr. Tierney
essentially doubles down on his earlier position, contending
that today recycling continues to disappoint on economic and
environmental grounds. He summarizes with this:
Cities have been burying garbage for thousands of years,
and its still the easiest and cheapest solution for trash.
The recycling movement is floundering, and its survival
depends on continual subsidies, sermons and policing. How
can you build a sustainable city with a strategy that cant
even sustain itself?
In the manufacturing world, recycling is more than a social
prerogative. It is also a business proposition that companies
evaluate on a cost-benefit basis as they do other potential
investments.
For electrical products, NEMAs position, affirmed by the
NEMA Board of Governors in 2006, is that recycling is the
preferred option for managing products at end-of-life, as long
as the environmental benefits accrued from collecting and
recycling the product can be shown to exceed the costs, fully
determined, associated with diversion from the waste stream.

20

NEMA electroindustry March 2016

?
Unless it makes economic and environmental sense, in other
words, recycling electrical products is not a worthwhile
endeavor. In most cases, it becomes a company-level
determination based on corporate values; the cost to recover,
transport, and process spent products; the intrinsic value of
those products; and other considerations.
When products contain toxic or highly regulated materials,
however, recycling remains appropriate and often is required
by law, with manufacturers carrying the burden of funding
and implementing programs under prescriptive legislation. Yet
policy arguments regarding how the programs are financed and
operated continue to be contentious.
But the landscape is changing there also. NEMA members in
several product sections have long invested in programs that
ensure the proper management of household products that
contain mercury (e.g., energy-efficient lamps and mechanical
thermostats) and lead, nickel, or cadmium (e.g., rechargeable
batteries).

Reconsidering the Existing EPR Model


Whats new is the recognition that the long-touted extended
producer responsibility (EPR) model that advocacy groups have
rigidly promoted for more than a decade may not be the ideal
policy structure after all.

New Era of Sustainability


For advocates, the predicted impact of EPR is threefold:
1.
2.
3.

Manufacturers are forced to internalize the costs of


recycling activities into the cost of the product
By absorbing this cost, manufacturers have an incentive
to improve the design of their products to increase
recyclability and remove toxic components
Local governments experience lower solid waste
management costs

There are other intended benefits, such as reducing landfill


use and stimulating green jobs, but these have been the three
principle selling points of the EPR model.
In NEMAs experience, however, this hasnt been the reality.
Outcome #1 has occurred in that manufacturers have absorbed
costs associated with recycling programs and presumably factor
those costs into pricing decisions. But there is no compelling
evidence that the threat or imposition of EPR mandates has
forced the introduction of greener products.
As NEMA members, leading manufacturers of household
batteries, energy-efficient lighting, and residential control
devices accept environmentally conscious design as a
fundamental principle of product development. They compete
vigorously on that basis and were doing so well before EPR
entered the lexicon.
The stunning evolution of highly efficient LED (light-emitting
diode) solutions in place of earlier mercury-based lamps is a
clear example; so is the proliferation of lighter, more versatile
and powerful batteries and the electronic programmable
thermostats that have replaced older mercury-switch units in
millions of U.S. homes and businesses.
These achievements stem from strategic investments and design
innovations over many years that were aimed at ensuring

growth and profitability while advancing sustainability goals


at the same time. A flourishing, highly competitive market
provides more than enough incentive.
The third predicted benefit of EPRreducing the costs to local
governments (and thus taxpayers) for waste managementis
harder to assess. While its true that municipal agencies devote
substantial resources to manage a variety of special wastes, its
not clear that mandatory EPR programs provide more efficient,
less costly solutions. If that were the case, we might expect to
see local tax reductions or rebates resulting from the savings
generated by these programs, but there is no evidence of this
taking place.
So where does that leave us? For NEMA members, the increased
skepticism regarding EPR has led to more open and helpful
discussion of how industry-funded recycling programs
should be structured. Some end-of-life NEMA products are
managed under an EPR framework, but years of experience
coupled with learnings drawn from other product sectors have
made manufacturers more confident about setting terms and
determining how best to spend their own money.
Meanwhile, while earlier motivations for recycling may be
losing power, others have risen to take their place, such as
reduced greenhouse gas emissions and a zero-waste society.
That probably means recycling will stay with us as a social and
political imperative and advocates will continue to promote EPR.
We have learned muchespecially that things are not as they
were before. ei
Before joining NEMA, Mr. Kohorst (mark.kohorst@nema.org)
was an environmental economist at the U.S. Environmental
Protection Agency and has consulted on environmental and
public health issues for more than 20 years.

NEMA electroindustry March 2016

21

Increased
Awareness Creates
New Paradigm in
Recycling
Paul Rodriguez, Program Manager, NEMA

ince the first fluorescent tubes were invented in the mid-19th


century, scientists have been filling glass tubes with all kinds
of gases to try to get the best light possible for consumers. From
carbon dioxide and nitrogen to the classic neon lamp, different
gases were used for different colors and intensities of light.

Commercially speaking, fluorescent has become synonymous


with a lamp containing mercury vapor. Compact fluorescent lamps
are found in many households these days, and their presence
creates a real concern from an environmental perspective.

boxes of lamps are broken and the mercury in them is allowed


to escape into the environment. However, it is important to
provide consumers with as many collection locations as possible
to make the recycling process easier.

Increased awareness of the effects of mercury has given rise


to programs designed to reduce the amount of mercury we
put into our environment. Lamps containing mercury cannot
just be disposed of in the landfill due to ground and pollution
concerns. A whole sector of the solid-waste industry came into
being to deal with pressurized lamps that contain harmful gases
such as mercury.

NEMA Pitches In

Many solid-waste facilities in the U.S. are equipped to process


mercury-containing lamps for recycling, but many others rely
on a third-party service to recycle these lamps. The machine
used to recycle these lamps is basically an industrial crusher
with a vacuum pump attached. Lamps are placed in the crusher,
which crushes both metal and glass parts of the lamp.
The mercury vapor is then vacuumed out and stored in a safe
container until it is used for recycling or reprocessing. Having a
machine like this on hand at a solid-waste facility greatly reduces
the complexity of the recycling process, but many governments
have complex processes in place to recycle these bulbs.
In many states, municipal and retail locations (e.g., transfer
stations and hardware stores) collect lamps in boxes. Boxes are
then packaged and sent to a solid-waste processing facility. This
facility then processes the lamps and removes the mercury to be
sent out for recycling. During this consolidation process, many

22

NEMA electroindustry March 2016

NEMA currently directs two mercury-containing lamp


recycling programs, in Vermont and Maine. These programs
provide for the recycling of mercury-containing lamps through
a fund-pool from manufacturers of these lamps.
The programs also have an educational aspect. Every year,
NEMA staff works with Vermont- and Maine-based news and
advertising agencies to effectively convey the need to recycle
fluorescent lamps. These programs reach millions of consumers
across the two states and provide support for retail and
municipal locations. Every year, NEMA staff visits both states to
check on the collection sites. The programs seem to work well,
and recycling rates have continued to improve over the years.
New technologies may require an improved mechanism for
recycling harmful gases. The fluorescent industry has seen a
good start in this technology, and as regulations become more
stringent, education and awareness programs will need to be
increasingly active to make consumers aware of the need to
recycle fluorescent lamps. ei
Mr. Rodriguez (paul.rodriguez@nema.org) works in the
renewables and energy efficiency arena. He manages NEMAs High
Performance Building Council and Daylight Management Council.

New Era of Sustainability

Taking Sustainability
to New Heights
Ron Rochon, Managing Partner, The Miller Hull Partnership

building like the Bullitt Center in Seattle, Washington, is not deep


green merely as a stylistic preference, like Art Deco or Brutalism. The
decision to generate power with rooftop solar panels is not akin to selecting
granite countertops.
Buildings account for an estimated 39 percent of carbon dioxide
emissions, 65 percent of waste, and 70 percent of electrical
use in the United States. In the Pacific Northwest, a changing
climate is already shifting our use of water, energy, and other
natural resources. To address this reality, the Bullitt Center is
demonstrating what is possible today and inspiring tomorrows
leaders to go even farther.
As the first urban structure of its kind, the Bullitt Center is
about learning and discovery. From the building design and
interactive resource center to the new community green space,
the Bullitt Center is a place for people to gather and learn about
green building and urban sustainability. It serves as a highly
visible example of whats possible when a team of people come
together to advance uncommon wisdom. It has been called the
greenest building in the world.
Features shaping the Bullitt Center include the following:

Bullitt Center photo by Chi Krneta for The Miller Hull Partnership

Living Building: The six-story, 50,000-square-foot building


is the nations first urban mid-rise commercial project to
attempt the rigorous goals of the Living Building Challenge,
the most ambitious benchmark of sustainability in the
built environment.

The building is performing beyond expectations. This is due


in part to extreme building efficiency as well as highly efficient
occupant behavior. On a recent visit on a particularly cloudy
day, the Bullitt Foundation office was lit only by daylight. The
staff actually prefers to keep the lights off and enjoy plenty of
ambient light provided by windows and skylightsresulting in
huge savings in electricity costs.

Teaching Building: The lower floor of the building, facing


15th Avenue and a new park at McGilvra Place, houses
the Center for Integrated Design. Programmed by the
University of Washingtons Integrated Design Lab, it
features an open classroom, exhibition space, and a research
laboratory dedicated to training pioneers who will lead the
green economy.

Learn more about sustainable buildings at


www.bullittcenter.org. ei
The Miller Hull Partnership is the sustainably oriented,
modernist architecture firm that designed the Bullitt Center.

Innovative green technology: Net-zero energy use with


100-percent onsite renewable energy generation from the
latest photovoltaic (PV) technology; water needs provided
by harvested rainwater; onsite waste management; a safe,
naturally day-lit and ventilated work environment for all
workers; and built to last 250 years.

NEMA electroindustry March 2016

23

Refurbished Medical Imaging Equipment:


Sustainable, Safe, and Effective
Andrew Northup, Director, Global Affairs, MITA

he Medical Imaging Technology Association (MITA) promotion of good


refurbishment practices for medical imaging equipment stresses the
benefits for patients and healthcare providers.
This is for good reason: a large, regional hospital focused on
neurology or cancer treatment may opt to purchase the latest
magnetic resonance imaging (MRI) or computed tomography
(CT) scanner every few years, even though the old equipment
is still completely capable of providing high-quality diagnostic
images and may have up to a dozen or more years left if in its
expected service life.

The environmental benefits of refurbishing medical imaging


equipment are certainly worth touting as well. By extending the
useful life of medical imaging equipment, from 57 to 1014
years or even more, refurbishment is a form of reuse and waste
prevention, contributing to a circular economy.1
Refurbishment saves theenergyand the materials used to
produce new equipment. Considering the energy and materials
used in the manufacturing, safety testing, and regulatory
compliance processes of imaging scanners, it is important, from
an environmental standpoint, to extend their service life as
much as possible.

Consequently, when a manufacturer properly refurbishes a


used system, the end result is a medical imaging device that is
as safe and effective as new. In turn, high-quality refurbished
systems represent a viable diagnostic imaging upgrade option
for hospitals seeking to stretch their budgets to purchase stillexceptionally good equipment.

Standardizing Safety
This inspired MITA to draft NEMA/MITA 1-2015 Good
Refurbishment Practices for Medical Imaging Equipment. When
medical imaging equipment is refurbished in accordance with
NEMA/MITA 1-2015, medical device regulators, healthcare
providers, and patients can be assured that the patients will be
safe and the doctors will have high-quality images to help direct
their care.

Extending the life of devices and preserving valuable


resources has resulted in CO2 savings of 150,000
tons over the past 10 years.
As an example, a modern MRI scanner can weigh 13 tons,
including huge magnets and highly advanced and intricate
technological components, as well as plastic and metal
coverings, patient gantries, and other supporting equipment.
There are some 25,000 MRI systems installed worldwide.
By refurbishing these scanners and extending their service
life, the return on the initial investment of energy and
materials is maximized. The majority of the components
A circular economy refers to an industrial economy that produces no waste and pollution.

24

NEMA electroindustry March 2016

New Era of Sustainability


stay in place. This is in contrast to recycling the parts and
materials of decommissioned equipment. Approximately 90
percent of material for a system undergoing refurbishment
can be re-used; only 10 percent of material has to be recycled,
which is done using environmentally-friendly processes by a
network of facilities specializing in reclaiming rare, valuable,
and hazardous materials. Extending the life of devices and
preserving valuable resources has resulted in CO2 savings of
150,000 tons over the past 10 years.

Addressing Global Sustainabiity


The largest, most mature markets for refurbished equipment
are North America and Europe; both regions are capable of
efficiently reusing advanced technology components at the end
of the equipments service life. MRI and CT, technologies that
demand the most resources and materials in their manufacture,
are also the most widely refurbished.
However, refurbished medical imaging equipment is banned
outright or tightly restricted in emerging global markets that
could benefit the most. New global regulations threaten to
bar the shipment of used medical electrical equipment for
refurbishment or end-of-life disassembly and recycling.
Refurbishment of medical imaging equipment in accordance
with NEMA/MITA 1-2015 offers a better way forward. By
replacing bans on refurbished equipment with a regulated
approach based on standards such as NEMA/MITA 1-2015,
countries can expand access to advanced medical technology
while guaranteeing patient safety and environmental
sustainability. By allowing export of used medical devices,
developing countries can sell high-quality medical equipment
for refurbishment at attractive price points.

MITA and our member companies know that a strong market


requires a variety of options, but, like safety, sustainability
is increasingly considered essential. Patients, doctors, and
regulators can rest assured that medical imaging equipment
refurbished in accordance with NEMA/MITA 1-2015 will not
compromise on safety, diagnostic quality, or environmental
sustainability. ei
Mr. Northup (anorthup@medicalimaging.org) is responsible
for MITAs refurbishment and global regulatory programs.

NEMA electroindustry March 2016

25

Electroindustry News

Rockin @ 90 with NEMA


Are you ready to rock? Join us in the
heart of Cleveland, Ohio, for NEMAs
90th Annual Meeting, scheduled for
November 16 and 17 at the new Hilton
Cleveland Downtown.
Consider this your backstage pass
to this years kickoff reception on
Wednesday, November 16 at the Rock
and Roll Hall of Fame and Museum.
Located on the shore of Lake Erie, it
is the worlds first museum dedicated
to the living heritage of rock and
roll music.
Come spend the evening enjoying
fabulous food and drinks, with plenty

26

NEMA electroindustry March 2016

of time to enjoy the museum at this


not-to-be-missed event. You will be
able to explore the museums dynamic,
interactive exhibits and view more
than 18,000 historical artifacts on
display from the museums permanent
collection. Take a step back in time
and reminisce about some of the
greatest musicians and songs of all
time as NEMA continues to rock at 90!
We will see you there!

ei

Mallory Rood, Meetings Manager,


NEMA | mallory.rood@nema.org

The father of rock and roll, Chuck


Berry, was born in St. Louis,
Missouri, in 1926the same year
NEMA was born in New York,
New York.

Photo courtesy of the Library of Congress, 1957 Universal Attractions

NEMA@90 will take the stage at the Rock and Roll Hall of Fame and Museum. Photo courtesy of the Rock and Roll Hall of Fame and Museum

Code Actions/Standardization Trends


Field Rep Report

Whats Happening in Midwest Code Development


If you follow the activities of the NEMA
field reps, you know our major focus
is code adoptions. We advocate on
behalf of NEMA members for current
building and electric code adoptions,
such as the National Electrical Code
(NEC), the International Code Council
(ICC) family of codes (I-Codes), and
various fire codes. Lets look at what is
happening in the Midwest with regards
to code development.
Michigan
In February 2016, the state adopted the
2015 Michigan Residential Code (MRC)
for one- and two- family dwellings.
Michigan models the MRC after the
2015 ICC family of codes. In this
adoption were multiple amendments
driven by groups that placed a higher
importance on cost than electrical safety.
Unfortunately, the Michigan homeowner
is the loser in this adoption due to the
removal of certain fire and electrical
safety provisions that had been in
previous editions of the code in the state.
Ohio
On December 4, 2015, the Ohio
Board of Building Standards voted
to move forward with the adoption
of the Residential Code of Ohio,
effective January 1, 2016. This code is
modeled after the 2015 I-Codes, with
state amendments.

Don Iverson

Ohio is looking to update the 2007


edition of ASHRAE 90.1 Energy
Standard for Buildings Except Low-Rise
Residential Buildings to the 2010 edition
and move from the 2009 International
Energy Conservation Code (IECC)
to the 2012 edition for commercial
structures. Also in January, the Ohio
Residential Code Advisory Committee
held a meeting to consider adoption of
the 2015 IECC for one-, two-, and threefamily dwellings.
Illinois
The Illinois Energy Conservation
Advisory Council held a hearing
in January on the adoption of the
2015 IECC.

Missouri
In October 2015, the Missouri
Department of Economic Development
released a new Comprehensive
State Energy Plan, which includes
recommendations for a statewide
building energy code that would
apply to commercial and residential
new construction.
In Missouri, which is a home-rule state,
energy code is only enacted on a local
level. Currently, St. Louis County is
reviewing the 2015 IECC for adoption. ei
Don Iverson, Midwest Field
Representative, NEMA |
don.iverson@nema.org

This Month in Standards for March 2016


NEMA SSL 7A-2015 Phase-Cut
Dimming for Solid-State Lighting
Basic Compatibility. This standard
provides compatibility requirements
when a forward phase-cut dimmer is
combined with one or more dimmable
light-emitting diode (LED) light
engines (LLEs). Available in hard copy
or download for $60.
ANSI C82.1-2004 (R2008, R2015)
American National Standard for Lamp

BallastsLine Frequency Fluorescent


Lamp Ballasts. This standard covers
ballasts that have rated open circuit
voltages of 2000 volts or less and are
intended to operate lamps at a frequency
of 50 or 60 Hz. Available in hard copy or
download for $94.
NEMA/MITA 1-2015 Good
Refurbishment Practices for Medical
Electrical Equipment. This standard
lays out the basic requirements for a

refurbishment process for medical


electrical equipment that will not
change the equipments original
intended use, safety profile, or
performance. Available for download at
no cost. ei
Ann Brandstadter, Manager,
Standards Publication and Marketing,
NEMA | ann.brandstadter@nema.org

NEMA electroindustry March 2016

27

Code Actions/Standardization Trends


Dominica Adopts ANSI C12 Metering Standards, Expands NEMAs Global Profile
ANSI C12.1-2008 establishes acceptable
performance criteria for new types of
AC watthour meters, demand meters,
demand registers, pulse devices, and
auxiliary devices. It describes acceptable
in-service performance levels for
meters and devices used in revenue
metering. It also includes information on
related subjects, such as recommended
measurement standards, installation
requirements, test methods, and
test schedules. This code is designed
as a reference for those concerned
with the art of electricity metering,
such as utilities, manufacturers, and
regulatory bodies.

Presently, on the Caribbean Island of


Dominica, consumers of electricity are
faced with high electricity costs resulting
from high fuel-surcharge payments. This
has led to high prices of commodities
and services produced on the island.
In response, Mara Abraham of the
Dominica Bureau of Standards (DBOS)
informed NEMA that it was tasked
with developing a standard to address
trade issues related to meter accuracy
and acceptable performance of new
types of electricity metering devices and
associated equipment.
The mission of the DBOS is to improve
the global competitiveness of Dominican
goods and services and enhance the
overall quality of life of the citizenry of
the Commonwealth of Dominica through
the promotion and maintenance of
standards and standards-related activities.
The DBOS found that NEMAs ANSI
C12.1 Code for Electricity Metering met
its need to address trade issues related
to meter accuracy and acceptable
performance of new types of electricity

28

NEMA electroindustry March 2016

metering devices and associated


equipment. The DBOS asked to adopt
this standard.
ANSI C12.1 is a good fit. It is in
compliance with Dominicas sole
producer of electricity, Dominica
Electricity Services Ltd, and its electricity
meters and proposed meter test console.
ANSI C12.1 is also being used in
Grenada and Guyana.
After further discussion with me (as
secretary of the ANSI C12 Electricity
Metering Accredited Standards
Committee), the DBOS reviewed and
adopted ANSI C12.20 American National
Standard for Electricity Meters0.2 and
0.5 Accuracy Classes.
Ms. Abraham noted that Dominica
adopted the ANSI C12 standards to
bring equity to the industry as it relates
to service providers and consumers.
The standards are expected to improve
the quality of kilowatt-hour metering
instruments.

ANSI C12.20-2010 establishes the


physical aspects and acceptable
performance criteria for 0.2 and 0.5
accuracy class electricity meters meeting
Blondels Theorem, which specifies the
minimum number of watt-hour meters
required to measure the consumption
of energy in any system of electrical
conductors. Where differences exist
between the requirements of this
standard and those of C12.1 and
C12.10, the requirements of
ANSI C12.20 prevail.
NEMA anticipates that new revisions
to ANSI C12.1 and ANSI C12.20 will be
published this year.
For more information on ANSI C12
standards or to get involved on the C12
Standards Committee, contact Paul
Orr. For information on the DBOS,
contact Mara P. Abraham, Technical
Officer Standards Development, DBOS
(mabraham@dominicastandards.org). ei
Paul Orr, Program Manager, NEMA |
paul.orr@nema.org

International Roundup
Reducing Trade Barriers to Innovation and Sustainability
Readers of this magazine are aware
of international talks underway on
eliminating customs import duties on
goods with environmental benefits.
When those negotiations toward an
Environmental Goods Agreement (EGA)
in the World Trade Organization (WTO)
were launched in 2014, many also had
in mind the global talks on reducing
emissions to mitigate climate change
and the December 2015 COP 21 in Paris.
COP 21, also known as the Paris Climate
Conference, is an abbreviation for the
21st session of the Conference of Parties
(COP) of the United Nations Framework
Convention on Climate Change
(UNFCCC).
The 17 parties (16 countries and the
European Union) negotiating the EGA
aimed to conclude the agreement in
time for COP 21 so their governments
would have something concrete to show
for their efforts, since the prospects for
a global climate agreement appeared
dim. Like a Hollywood script, however,
the reality turned out to be the opposite
of what had been expected. A climate
change agreement, the Paris Agreement,
was reached at COP 21. Meanwhile, the
EGA talks continue and as of this writing
were scheduled to reconvene in Geneva
in mid-February.
What does this mean for trade policy,
innovation, and sustainability? In terms
of the Paris Agreement, the results are
positive. In summary, the agreement
emphasizes the role of present and future
innovation in solving the climate change
puzzle. Article 10 states, in part, that the
parties share a long-term vision on the
importance of fully realizing technology

development and transfer in order to


improve resilience to climate change and
to reduce greenhouse gas emissions.
Notably, U.S. officials have pointed
out, any mentions of forced technology
transfer or compulsory licensing of
patented technologiesdemands that
burdened earlier UNFCCC talks
were omitted from the final Paris text.
Respect for and protection of intellectual
property rights are important for
companies in developing countries, as
well as developed ones.

In summary, the agreement


emphasizes the role of present
and future innovation in solving
the climate change puzzle.
Accelerating, encouraging, and enabling
innovation is critical for an effective,
long-term global response to climate
change and for promoting economic
growth and sustainable development,
reads Article 10, paragraph 5, of the
Paris Agreement. To that end, future
UNFCCC talks will tackle how to link
the conventions current technology
mechanism, which is intended to
help countries develop and deploy
climate technologies, with the financial
assistance to less-developed countries.
During the Paris conference, the
UNFCCCs Momentum for Change
initiative recognized 16 game-changing
climate action initiatives, such as
NEMA member Chargepoints electric
vehicle charging corridors and the solar

market gardens project of the Solar


Electric Light Fund.
At the WTO, while the EGA appears
to remain on track for conclusion
sometime in 2016, the talks appear to
have lost much of the aspirational spirit
that initially motivated the initiative
to reduce costs of import products and
technologies that can help countries
address their urgent environmental
challenges. Still, prospects for market
access benefits for NEMA companies
remain real. Although the product list
on which the negotiators are working is
not public, NEMA is aware that several
product categories it supports (including
lighting and industrial controls) remain
on the table.
As it did in parallel negotiations to
eliminate import tariffs on information
and communication technology
products (which concluded in December
2015), China is taking time to consider
possible endgames and implications
for the competitiveness of its domestic
companies, as well as for environmental
protection and remediation. China also
chairs the Group of Twenty (G20) leading
industrial economies in 2016 and may
be ready to conclude the EGA from that
leadership position.
NEMA will continue to work with
interested members and international
counterparts to advocate for the
conclusion of an EGA as soon as possible
in 2016. ei
Craig Updyke, Director, Trade
and Commercial Affairs |
craig.updyke@nema.org

NEMA electroindustry March 2016

29

Economic Spotlight
Renewable Energy Advances Repel Threat from Lower Natural Gas Prices
For much of this decade, renewable
energy investment has struggled to gain
a foothold, as utilities facing declining
electricity demand and revenue growth
have turned to abundant, reliable, and
lower-cost natural gas to add capacity
and replace coal generation.
More recently, advances in renewable
energy technologies have made the costs
of generating electricity from wind and
solar power increasingly competitive
with that of natural gas. At the same
time, grid modernization, transmission
investment, and developments in energy
storage have increased the feasibility
of integrating intermittent renewable
power sources with existing consistent
power sources.
Just as these advances were on the
verge of driving the unsubsidized cost
of electricity from renewable energy
generation below the cost of natural gas
generation, however, the shale oil boom
drove natural gas prices down by 40
percent in 2015.
The sudden bountiful supply of
inexpensive natural gas raised concerns
that investment in energy efficiency
in general, and renewable generation
in particular, would lose momentum.
After all, sales of all-electric and hybrid
electric vehicles plunged 17 percent last
year as gasoline prices plummeted, even
as overall light vehicle sales reached a
record high.
A recent commentary by McKinsey1
suggests that such concerns are
overblown, concluding that renewable
generation investments will continue
to grow for several reasons. They point
out that the market has room for growth
in both renewables and natural gas
generation, particularly if renewables
continue to see technology advances
that reduce costs and increase reliability.
www.mckinsey.com/insights/energy_resources_materials/
lower_oil_prices_but_more_renewables_whats_going_on

30

NEMA electroindustry March 2016

The U.S. Energy Information Agencys


most recent projections of generation
investment echo this view.2
Energy markets are changing. The
high cost of renewable technology
limited initial investments to advanced
economies. The drop in renewable
technology costs, particularly for solar
and wind, combined with relatively
high fossil fuel costs in less advanced
economies, has driven China to become
the leader in renewable generation
investment. Japan, India, and even
Middle Eastern nations are investing
heavily in renewables.
Since electricity generation investments
are long-term, short-term fluctuations
in fuel prices are less relevant to the
decision to invest in renewables. For
example, the dramatic decline in oil
prices since mid-2014 has led to a sharp
reduction in natural gas production tied
to oil rig operations, which will likely
eventually translate into higher natural
gas prices.
www.eia.gov/forecasts/aeo/pdf/0383(2015).pdf

Finally, although natural gas electricity


generation reduces carbon emissions
by nearly half compared to generation
using coal, it is still a significant source
of carbon emissions. Regulations
aimed at curbing carbon emissions,
plus investment incentives both in the
United States and globally, ensure that
renewable sources of energy to generate
electricity, as well as energy-efficiency
enhancements, will be growing factors in
the mix of generation fuel sources.
An all-of-the-above approach to energy
policy bodes well for NEMA companies
that offer state-of-the-art technology to
provide energy solutions for electricity
derived from all fuel sources. ei
Donald R. Leavens, PhD, Vice President
and Chief Economist, NEMA/BIS |
don_leavens@nema.org

Business Conditions Indexes Rebound in January Following December Retreat


After a sizable decline in December,
NEMAs Electroindustry Business
Conditions Index (EBCI) for current
conditions in North America rebounded
in January. The index climbed to 50
from 41.2 the previous month, with an
equal share of panelists (41 percent)
reporting that conditions improved and
that they deteriorated. Eighteen percent
of the panelists stated that the business
environment was unchanged.
In December, only 18 percent of panelists
claimed that business conditions
improved, while 35 percent reported they
deteriorated and 47 percent stated they
were unchanged. The surveys measure
of the intensity of change in industry
business conditions, however, remained
in negative territory in January, even
after increasing to -0.1 from -0.2 in
December. Panelists are asked to report
the intensity of change on a scale ranging
from 5 (deteriorated significantly)
through 0 (unchanged) to +5 (improved
significantly).
Meanwhile, the EBCI for future North
American conditions jumped to 67.6 in
January from 52.9 in December. A larger
share of panelists in January (53 percent)

Tim Gill, Deputy Chief Economist,


NEMA | tim.gill@nema.org

expect conditions to improve over the


next six months than was the case in
December (29 percent), while a smaller
share in January (18 percent) expect
conditions to deteriorate than was the
case in December (24 percent). The share
expecting to see no change in business
conditions fell to 29 percent in January
from 47 percent in December. ei

Visit www.nema.org/ebci for the complete


January 2016 report.

NEMA electroindustry March 2016

31

We Are NEMA

Expert
Listen to the

I am

NEMA

Addressing Cybersecurity in Medical Imaging


MITAs Medical Imaging Informatics Section Chair Rik
Primo discusses NEMA/MITA CSP 1-2015 Cybersecurity
for Medical Imaging, a white paper that addresses how
cyber threats pose a significant risk to patient safety
and clinical and business continuity in the practice of
medical imaging.
Listen:
www.nema.org/MITAs-Cybersecurity-Recommendations
Rik Primo, Director, Strategic
Relationships, Siemens Healthcare

Download:
www.nema.org/MITA-Statement-for-Medical-DeviceSecurity

Drawing on the Past to Affect the Future


Harry Massey, Retired Industry Director, NEMA
From 2003 to 2016, I worked with up
to 17 product sections, from fuse to
imaging security industries. I learned the
importance of standards to innovation.
Throughout these years, I was able to learn
more about the electrical industries and
how they work together on projects that
can turn into strategic initiatives.
Looking to the future, I realize the
significance of young people learning
the importance of technology in their
lives. When I retired and moved to North
Carolina earlier this year, I decided
to dedicate my time to encouraging them to consider becoming involved in
technology through science, engineering and math (STEM).

When Harry Massey retired, he returned to Mt. Olive,


North Carolina, home of the Mt. Olive Pickle Company
where he worked as a teenager. Now he wants to help a
younger generation learn from his experiences.

What does someone with a political science degree have to offer STEM? My own
experience says a lot. I believe the nation needs to develop a partnership that
can communicate the importance of STEM to innovation. I hope to share those
experiences with you in the future.
Stock art Credits
Cover, 1: iStockphoto.com/wgmbh
Cover, 1: fiore26/Dollar Photo Club
6: iStockphoto.com/zstockphotos
12: iStockphoto.com/macroworld
13: iStockphoto.com/Hluboki

32

16-17: Rachael Arnott/Dollar Photo Club


16: iStockphoto.com/grybaz
18-19: djvstock/Dollar Photo Club
20-21: iStockphoto.com/piccerella
20: iStockphoto.com/PeskyMonkey

NEMA electroindustry March 2016

21: iStockphoto.com/mokhtari
22: iStockphoto.com/BanksPhotos
24: iStockphoto.com/oonal
28: iStockphoto.com/Bjrn Kindler
30: iStockphoto.com/pixinoo

Advocating for Efficiency


As a member
of the NEMA
Government
Relations
(GR) team,
my focus is
on ensuring
that NEMA
member
products,
Joseph Eaves, Director,
especially
Government Relations, NEMA
those at
the forefront of driving energy
efficiency throughout our economy,
have a reliable and safe marketplace.
Government policy at either the federal
or state level can have a tremendous
impact on the electroindustry. Some
policies have the potential to create or
encourage new markets, while others
create new hurdles.
Over the last decade, many
policymakers have come to understand
the value that energy efficiency brings
to consumers, businesses, and our
economy. They continue to strive for
further gains in efficiency, regardless
of application or situation. The main
objective behind NEMA GR is to
help policymakers understand what
our members are doing and how
government policies can encourage
continued adoption of technologies
that drive energy efficiency.
As industry advocates, GR team
members provide significant value to
NEMA members. We take our role
seriously, knowing and appreciating
the impact that government policies
often have on the industry. I am proud
to be a part of a team and organization
that continually pushes for
government policies that promote the
next generation of technologies that
bring about energy-efficiency gains in
every sector of the nations economy.

1886 Harvey Hubbell


invented the pull
chain switch

1998 the roots of


HBA established

2004 LX lighting control


panels introduced

BE AUTONOMOUS!

2006 IntelliDAPT
self-learning sensor
technology introduced

Plug in the NX Room Controller for


stand-alone lighting control that
integrates automatic and manual
control. Auto-configures to meet
energy codes out of the box. Add our
Bluetooth radio module to manage
your lighting with "from the ground"
convenience. Connect multiple
controllers to form a distributed
intelligence lighting network.
NX controls are simple yet scalable
for a trouble-free installation.

2006 WASP High Bay


Sensor Introduced

2011 CX panels introduced

2014 wiSCAPE outdoor wireless


lighting controls introduced

At Hubbell Control Solutions, our


history shows we're focused on one
thingproviding you lighting controls
that are innovative, integrated and
simple. Call us today.

2015 NX distributed intelligence


lighting controls introduced

2016 HBA becomes


Hubbell Control Solutions

2016

P (512) 450-1100
www.hubbell-automation.com

Functional Safety
Vertified

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