Grassley, Hagerty: DOE’s Newly-Proposed Standards Would Weaken Domestic Manufacturing, Exacerbate Supply Chain Shortages

Grassley, Hagerty: DOE's Newly-Proposed Standards Would Weaken Domestic Manufacturing, Exacerbate Supply Chain Shortages

WASHINGTON - Sen. Chuck Grassley (R-Iowa) joined Sen. Bill Hagerty (R-Tenn.) and 45 of his bipartisan colleagues in raising concerns about a Department of Energy (DOE) proposal to regulate standards for distribution transformers. Specifically, the rulemaking titled Energy Conservation Program: Energy Conservation Standards for Distribution Transformers would require a shift from Grain Oriented Electrical Steel (GOES) cores to amorphous steel cores, of which there is limited domestic resource.

The electric power industry is already up against acute supply chain challenges and skilled worker shortages. If finalized, the rule would prompt further delays, force manufacturers to significantly adjust their production lines and hamper grid reliability.

"Moving to amorphous steel cores, as proposed by DOE, would require this sole domestic supplier to rapidly scale operations from its current market share of less than five percent to accommodate the entire distribution transformer market," the lawmakers wrote.

"We appreciate the actions that this and previous administrations have already taken in recognition of the challenges associated with distribution transformer supply chains, including the 2022 designation of GOES on the U.S. government's list of 'critical goods and materials' and the invocation in the same year of the Defense Production Act to accelerate the production of 'critical power grid infrastructure like transformers,'" the lawmakers continued. "However, by phasing out the primary market for U.S.-produced GOES, the Proposed Rule could jeopardize this progress, putting everyday American families at risk."

"We believe the most prudent course of action is to let both GOES and amorphous steel cores coexist in the market, as they do today without government mandates, for new installations as we ramp up domestic production and reorient supply chains," the lawmakersconcluded.

The full text of the letter can be found HERE.

-30-

• Print
• Email
• Like
• Tweet