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In early 2016, the U.S. Department of Energy (DOE) issued energy efficiency standards and testing procedures for commercial and industrial water purification (CIP) pumps, essentially requiring that by 2020, pumps sold on the market would need to be redesigned or reconfigured to meet the new efficiency standards. We estimate that these requirements will eliminate about 25% of the pumps currently available. For pump manufacturers, this is of course no news, as they are already prepared for it. However, for most end users I talk to, this is relatively new. They want to know how it will affect them – whether there will be significant changes in the pumps available on the market, and whether they need to change the way they purchase them. How much do we know now about the impact of these changes? The manufacturer has already begun implementing the changes. Many companies have already launched or will launch new models that utilize more efficient technologies or designs; these models can be developed in-house or acquired through some of the mergers and acquisitions mentioned in your recent reports. Therefore, I know that the pump manufacturers will be ready by 2020. Will this affect the currently installed pump or only the new one? The coming years will offer some very interesting options for end-users. The DOE energy efficiency standards require no changes to the equipment or pumps currently in use. However, with more efficient pumps available on the market and utility incentive programs, end-users will have some interesting options. When conducting life-cycle and cost analysis on pumps, most end-users find that over 75% of the total life-cycle cost consists of various operating costs. Energy costs alone account for a large share, at 40%. The upfront cost of purchasing a new pump is usually only around 10%, while the installation cost is 7%. Incentives will further reduce upfront costs, making it more affordable to purchase new, more efficient pumps, which will result in greater energy savings. Tell me more about the utility incentive program. The utility incentive program aims to rapidly transform the market. Utility companies like to think of these processes as building “negative” watt power plants, which essentially obtain a “negative” amount of energy from the power grid. Utility companies have succeeded in doing this through discounts on lighting and variable speed drives (VSDs). There are already some programs related to pumps, but they are often referred to in the industry as “custom programs”. These are typically used in the installation of large pumps, where extensive engineering, testing, data collection, and verification are required, and they can save a significant amount of energy. Recent activities are moving in the direction of being considered incentives. This method collects data to pre-analyze and verify energy savings. This allows the public utilities sector to establish prescriptive discount plans that can be adopted anywhere. The savings have been predetermined, and the management process has been substantially simplified. The Hydraulic Institute of America (HI) is providing data to enable these tests and verifications to be carried out right now, but fundamentally, we have also developed energy rating labels specifically for this purpose. Tell us more about the energy rating label. HI has collaborated with DOE to develop testing methods that manufacturers use to measure performance. The energy rating label is essentially HI 40.6 (the DOE also requires pump testing standards), plus some additional calculations in accordance with CIP regulations. There are also some regulatory requirements for energy rating labels, including test data from pump testing laboratories approved by HI. This step is very important for utility companies that need additional assurance that the performance specified on the label will actually be achieved when using the pump. What time is it? When can we expect these to change the market? Time is a big issue. Clearly, the earlier these plans are implemented (by 2020), the greater the impact will be. HI’s Pump Testing Laboratory Approval Program (PTLAP) currently involves more than a dozen manufacturers/labs. The Energy Rating Label scheme is scheduled to launch in the first quarter of 2017. We have been working with utility companies for many years and have been sharing data, so the utility planning system should also be ready for use by early 2017. Early adopters will begin to see some effects in 2017, and we expect the program to be established in 2018. What will happen after 2020? Are market incentives still effective? There is a general consensus that there will still be incentives in the market. Pump systems account for 25% to 30% of the electricity consumption, so replacing or upgrading that amount of equipment takes some time. Even if regulatory or incentive levels change, energy ratings remain the standard used. HI is proud to have developed a system that not only meets the strict technical requirements of regulated utility companies but also can evolve alongside the development of the industry. Of course, HI can also collaborate with trade organizations for electric motors (**Electrical Manufacturers Association**), compressed gases (Compressed Air and Gas Institute), and fans (Air Movement and Control Association) to coordinate our efforts and streamline the processes for all our applications. For incentive programs to be truly effective, no matter how excellent they may be, they still must be easy for utility companies to quantify and manage. Adopting a universal framework for everyone will help with this effort. Should we also pay attention to other upcoming regulatory changes? Currently, two additional regulatory procedures related to cleaning water pumps are being implemented. They include circulation pumps and dedicated pool pumps (DPPP). These pumps are excluded from CIP regulations due to their unique design tailored for specific applications. HI’s Circulation Pump Committee began working with energy advocates in 2014. In early 2016, the DOE, on the advice of advocates and the HI Committee, approved the Electrical Standards Federal Rulemaking Advisory Committee (ASRAC) working group (a similar process led to the CIP regulations) to recommend testing procedures and standard levels. The 15-member ASRAC working group held more than 20 meetings to negotiate and finalize the list of terms by December 2016. The list of provisions includes recommendations regarding scope, testing procedures, and standard levels for consideration by the Minister of Energy. We are currently awaiting the Notice of Proposed Rulemaking (NOPR) expected to be issued in 2017, and will comply with the final rules. Generally, glossaries recommend a standard water level for in-line pumps of 5 horsepower or less, which are designed specifically to use motors that must be installed horizontally to circulate water. These types of pumps are commonly used in hydraulic heating and domestic hot water recirculation. For DPPP, a process similar to that of a circulation pump is used. The NOPR for this test procedure (which also defines the scope) was published in the Federal Register on September 20, 2016, and comments were accepted until November 21, 2016. The test procedures for DPPP, as well as the final rules and standard-level final rules, are expected to be released in 2017. In terms of regulations, many changes have taken place in the pump industry. How to maintain HI? HI is fortunate to have the strong support of the entire pump industry, our suppliers, partners, and an ever-growing number of end-users. We have been meeting together to collaborate on the standards. Currently, we are sitting down with end-users to develop training and certification programs to help them understand their systems. Working closely with end-users also helped HI to interact with its members in entirely new ways. This is exciting, especially in this year as we celebrate our centenary. Therefore, in search of more new initiatives in 2017, please pay close attention to our new anniversary logo, which will bring the entire industry together more closely and propel HI into a new century.