Washington D.C.- U.S. Senators Sherrod Brown (D-OH) and Ted Cruz (R-TX) introduced new legislation – The Distribution Transformer Efficiency & Supply Chain Reliability Act of 2024 - to boost the U.S. transformer supply chain by setting new realistic energy efficiency standards that help stabilize domestic transformer manufacturing so increased demand can be met.
The new legislation would stop a proposed Department of Energy rule from taking effect. The rule calls for U.S. steel manufacturers like Ohio-based Cleveland-Cliffs, to change the type of steel produced to manufacturer transformers. The new rule would only make the supply chain issue worse, add vulnerability to the nation's electric grid, and threaten national security.
“A strong domestic supply of transformers is crucial to our electric grid and our energy independence. We need to meet increasing demand for transformers, while keeping this critical supply chain in the U.S. and making sure the Department of Energy gets it right,” said Brown. “That’s why we introduced this bill with a new standard that supports American jobs and our energy independence.”
“The Department of Energy’s proposed rule is a misguided effort to improve efficiency. We all agree that efficient energy is a good thing that benefits consumers, but by effectively forcing the distribution transformer industry to change the type of steel it uses almost overnight, Department of Energy’s rule would actually jeopardize electricity distribution for millions of Texans and Americans, with potentially disastrous results during extreme weather. As more and more people call Texas home, we need a reliable and affordable supply of distribution transformers so that new homes, businesses, and industrial facilities can connect to reliable and affordable energy. I’m proud to work with Sen. Sherrod Brown in a bipartisan manner to correct this,” said Cruz.
Read full release here.
