Pinehurst Today

Yesterday, the U.S. House of Representatives passed an amendment led by Congressman Richard Hudson (R-NC) and Congressmen Mike Kelly (R-PA). This amendment aims to prevent the implementation of the U.S. Department of Energy's energy efficiency standards for distribution transformers. The amendment was included in H.R. 6192, also known as the Hands off our Home Appliances Act.

"One of the many lessons we learned from the Moore County 2022 grid attack is that we cannot afford disruptions to our grid," said Congressman Hudson. "This amendment to the Hands off our Home Appliances Act helps protect our nation’s grid security and unleash reliable American energy production.”

In December 2023, the Department of Energy proposed new energy efficiency standards for low-voltage dry-type distribution transformers, liquid-immersed distribution transformers, and medium-voltage, dry-type distribution transformers. The proposed rule would have required all distribution transformers to shift from grain-oriented electric steel (GOES) cores—which account for 95% of the domestic distribution transformer market—to amorphous steel cores. The latter product does not have a domestic supply chain and relies on imports from China and India.

Congressman Hudson introduced legislation called Protecting America’s Distribution Transformer Supply Chain Act. This act aims to repeal the Department of Energy’s authority to propose, finalize, implement, administer or enforce any energy efficiency standard for distribution transformers for five years. This period would allow time for strengthening our domestic supply chain.

The legislation was considered at various stages:

- On September 13th, 2023 during a House Energy and Commerce Committee Energy, Climate, and Grid Security Subcommittee legislative hearing titled “Keeping The Lights On: Enhancing Reliability And Efficiency To Power American Homes.”

- On October 24th, 2023 during a House Energy and Commerce Committee Energy, Climate, and Grid Security Subcommittee Markup.

- On December 5th, 2023 during a House Energy and Commerce Committee Markup.

On April 4th, 2024, the Department of Energy finalized the new energy efficiency standards. The final rule would require that 25% of transformers are made with amorphous steel cores. Congressman Hudson's amendment to H.R. 6192 prevents these energy efficiency standards from taking effect.