Hudson Amendment to Protect Grid Security, Prevent Harmful Dept. of Energy Rule for Transformers Passes House

WASHINGTON, D.C. - Yesterday, the U.S. House of Representatives passed an amendment led by Congressman Richard Hudson (R-NC) and Congressmen Mike Kelly (R-PA), which would prevent the U.S. Department of Energy's harmful energy efficiency standards for distribution transformers from taking into effect. The amendment was included in H.R. 6192, 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."

Background: 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 shift from the industry standard grain oriented electric steel (GOES) cores - which accounts for 95% of the domestic distribution transformer market - to amorphous steel cores, a product that we do not have a domestic supply chain for and must rely on China and India.

Congressman Hudson introduced the Protecting America's Distribution Transformer Supply Chain Act, legislation to repeal the Department of Energy's authority to propose, finalize, implement, administer, or enforce any energy efficiency standard for distribution transformers for the next five years, which would allow our domestic supply chain to strengthen. His legislation was considered:

• In the September 13^th, 2023 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."
• In the October 24^th, 2023 House Energy and Commerce Committee Energy, Climate, and Grid Security Subcommittee Markup, and forwarded to the Full Committee with unanimous Republican support.
• In the December 5^th, 2023 House Energy and Commerce Committee Markup, and favorably reported to the House with unanimous Republican support.

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 the Department of Energy's energy efficiency standard for distribution transformers from taking effect.

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