Representatives Mike Kelly (R-PA) and Chris Deluzio (D-PA) on Jan. 31 introduced H.R. 7171, the Distribution Transformer Efficiency and Supply Chain Reliability Act of 2024.
The legislation is the House counterpart to S. 3627, introduced in January by Senators Sherrod Brown (D-OH) and Ted Cruz (R-TX).
The bills would amend the Energy Policy and Conservation Act to limit increases to federal efficiency standards for specific distribution transformers.
H.R 7171 is cosponsored by Representatives Henry Cuellar (D-TX), Brian Fitzpatrick (R-PA), Dan Meuser (R-PA), Guy Reschenthaler (R-PA), Lloyd Smucker (R-PA), Susan Wild (D-PA), and Steve Womack (R-AR).
The American Public Power Association said that while it recognizes that these bills do not completely solve the existing distribution transformer supply chain shortage, it supports H.R. 7171 and S. 3627.
The legislation would amend EPCA to prohibit the Department of Energy from finalizing any energy efficiency standards for liquid-immersed type, low voltage dry type, or medium voltage dry type distribution transformers that are greater than a trial standard level 2 (TSL 2). It also would require that those changes not take effect until 10 years after the standard is finalized.
This legislative effort comes in response to DOE's January 2023 notice of proposed rulemaking to set new energy efficiency standards for distribution transformers.
The NOPR would set efficiency standards at TSL 4, which would require distribution transformers to use amorphous steel cores in place of traditional, grain-oriented electrical steel (GOES). If finalized, the new standards would severely exacerbate the transformer shortage, present a major threat to grid reliability, and cripple the domestic production of GOES steel.
Setting an efficiency standard of TSL 2 would allow the main types of distribution transformers to continue using GOES steel cores. While requiring some change to the manufacturing process, this prevents a complete shift in the materials acquisition that would have been required to meet TSL 4 energy efficiency.
Under EPCA, DOE is required to review and potentially revise energy efficiency standards every five years.
Providing the ten-year delay before the rule takes effect provides steel producers and distribution transformer manufacturers with adequate time to make manufacturing process changes necessary to ramp up production to meet demand, APPA noted.
