Toward bolstering America’s transformer supply chain, U.S. Sen. Todd Young (R-IN) on Jan. 18 proposed a bipartisan bill that would set improved energy efficiency standards to help stabilize domestic transformer manufacturing.
“Transformers are a critical part of our electric grid,” Sen. Young said. “Our bipartisan bill would correct a misguided rule proposed by the Department of Energy to ensure we have a sufficient domestic supply of transformers and set appropriate federal standards to better promote American energy independence.”
The U.S. Department of Energy (DOE) in January 2023 proposed a rule that would require all distribution transformers to shift from the industry standard grain oriented electrical steel (GOES) cores to amorphous cores, according to a bill summary provided by Sen. Young’s staff.
GOES currently accounts for more than 95 percent of the domestic distribution transformer market and manufacturers’ production lines are tooled for designs that use GOES.
Moving to amorphous cores, as proposed by DOE, would disadvantage U.S. manufacturers and risk adding significant vulnerability to the nation’s grid and national security, the lawmakers say.
To counter DOE’s proposed rule, Sen. Young joined 10 other original cosponsors to unveil the Distribution Transformer Efficiency and Supply Chain Reliability Act of 2024, S. 3627, which is sponsored by U.S. Sen. Sherrod Brown (D-OH).
If enacted, S. 3627 would prevent the DOE rule from taking effect and instead create a new standard that provides increased energy efficiency of transformers at levels that preserve market opportunities for GOES, as well as amorphous, the summary says.
The National Rural Electric Cooperative Association, the National Electrical Manufacturers Association, the Edison Electric Institute, the National Association of Home Builders, Leading Builders of America, United Automobile, and Cleveland Cliffs endorsed S. 3627, which has been referred for consideration to the U.S. Senate Energy and Natural Resources Committee.