Bounty criteria
definitions & scheme rules
To qualify for a ‘motor’ bounty payment, a motor needs to meet all of the following criteria and (unless prior-agreed otherwise) the motor user will need to commit to purchasing and putting into service a MEPS 2006 compliant replacement within a year of the removed motor being accepted into the scheme.
A qualifying motor can be failed or operational, but in either case must:
To qualify for an ‘in-service’ bounty payment the replacement motor must be both purchased and in-service within a year of the motor it replaced being accepted into the scheme. The new motor must also be MEPS 2006 compliant – meaning that it must meet or exceed the efficiency levels specified in Table A2 (p15) or Table B2 (p19) of AS/NZS 1359.5: 2004.
† Motors from 185 kW up to and including 265 kW will only be accepted into the scheme when the efficiency of the replacement motor meets or exceeds the MEPS 2006 level for 185 kW motors. The bounty payments in such cases would be based on a motor size of 185kW.
The bounty paid to a motor user is made up of two components:
The value of the ‘motor’ payment is dependent on the size of the motor being removed and whether the motor has failed or is operational at the time.
The value of the ‘in-service’ payment is dependent on the size of the new motor purchased and its annual hours of use in the application in which it is installed. The ‘in-service’ payment is made only when the new MEPS 2006 compliant motor is purchased and put into service within one year of the motor it replaced being accepted into the scheme. The new motor must also be installed in an application whose operational requirements could have been met by the removed motor.
A failed motor is defined as a motor that when first identified for the bounty scheme would, because of its condition, be unlikely to be returned to continuous service at its rated load.
An operational motor is defined as a motor that when first identified for the bounty scheme is either in-service or is currently in-store and could be returned to service immediately and perform continuously at its rated load without requiring any repair. In some cases where minor repairs may be required, such as a broken foot, damaged fan or missing terminal box, a proportion of the ‘motor’ payment (as it relates to operational motors) may be paid.
Acceptance of motors into the bounty scheme is at the discretion of Energy Associates Limited.
The bounty structure and payment rates are reviewable and any amount paid will be based on the rates listed on the Motor Bounty website on the day the qualifying motor(s) was accepted for a bounty payment.
Motor users need to complete a Bounty Scheme Participation Agreement (provided by their accredited service provider) to be eligible to take part in the scheme. This needs only to be done once.
The scheme uses public funds and the Bounty Scheme Participation Agreement includes provision for auditing to ensure funds are used appropriately.
Motor users choose their motor supplier(s) and their accredited service provider.
Each bounty claim by a motor user must be verified by an accredited service provider (i.e. a service provider accredited to the scheme by Energy Associates Limited).
The costs and responsibility for transporting (if required) the removed motor(s) to an accredited service provider’s premises are not covered by the scheme. Motor users can independently contract accredited service providers to assist them to identify and transport qualifying motors.
Accredited service providers are responsible for verifying that motor details, including operational status and bounty payment claims, are legitimate. They are also responsible for managing bountied motors through to disposal.
All motors for which a bounty has been paid must be permanently disabled so as to be unfit for use in any market.
The ‘motor’ and ‘in-service’ bounty payments are paid directly to motor owners by the Electricity Commission. Payments will be direct credited into motor owners’ nominated bank accounts and be accompanied by IRD-approved ‘buyer created tax invoices’.
The ‘in-service’ component of the bounty is payable only when it is verified that a MEPS 2006 compliant equivalent replacement motor has been purchased and put into service within one year of the motor it replaced being accepted into the scheme. The new motor must also be installed in an application whose operational requirements could have been met by the removed motor.
A motor bounty may be reserved for an in-service motor that will be removed in the future, provided a qualifying replacement motor is ordered on indent for ‘soonest possible delivery’. For motors accepted into the scheme on an indent order, the motor bounty will be paid at the time the existing motor is removed (providing it is verified as meeting the bounty criteria that applied at the time it was registered) and the in-service bounty will be paid when the new motor is installed (provided this is within 12 months of the bounty application).
In cases where there is no firm commitment to purchasing and installing a new MEPS 2006 compliant replacement motor, a ‘motor’ bounty payment might be paid. Any such payment would be by negotiation with Energy Associates Limited.
The Bounty Scheme duration, structure and payment rates are at the discretion of the Electricity Commission.