Kelly urges DOE to save jobs by repealing proposed transformer rule

U.S. Rep. Mike Kelly (R-PA) hosted a town hall this week in Butler, Pa., to highlight the concern of hundreds of local workers about a proposed rule from the U.S. Department of Energy (DOE) related to electric transformers that would put their jobs at risk.

Rep. Kelly joined with officials from Cleveland-Cliffs Butler Works and the United Auto Workers Local 3303, which represents workers at Butler Works, to inform the community of a DOE proposal that could eliminate 1,300 jobs at the plant. The Cleveland-Cliffs Butler Works plant is the last U.S. producer of Grain Oriented Electrical Steel (GOES), a component in electric distribution transformers.

The congressman noted that the workers’ jobs are in jeopardy due to the DOE’s proposed regulation that would lower demand for GOES by switching transformers from GOES to amorphous steel. Such a move would pose risks to the U.S. supply chain because major amorphous steel producers are located overseas, Rep. Kelly’s office explained.

“The purpose of our town hall was to give the community a chance to make their voice heard. The message we heard was loud and clear: The Department of Energy must formally repeal this rule to save 1,300 family-sustaining jobs at Cleveland-Cliffs Butler Works and to protect the Butler economy,” Rep. Kelly said.

The DOE’s proposed rulemaking, “Energy Conservation Program: Energy Conservation Standards for Distribution Transformers,” increases efficiency standards on distribution transformers, which are already no less than 97.7 percent energy efficient, the congressman’s staff noted.

“This fight isn’t just about the jobs at this plant,” Rep. Kelly said. “Seven jobs in the Butler community depend on each job at the Butler Works plant. I will continue fighting to protect these jobs until a deal is in writing and the ink is dry.”

Rep. Kelly and U.S. Rep. Chris Deluzio (D-PA) on Jan. 31 introduced the Distribution Transformer Efficiency and Supply Chain Reliability Act of 2024, H.R. 7171, a bill that aims to bolster the U.S. transformer supply chain by setting new energy efficiency standards that help stabilize domestic transformer manufacturing to meet increasing demand without undermining American steel production.

In addition, in December, Reps. Kelly and Deluzio wrote a letter to Energy Secretary Jennifer Granholm stating their strong opposition to the proposed rule.