North Carolina Senator Thom Tillis (R) co-introduced a new piece of legislation to the U.S. Senate June 27 dubbed the Protecting America’s Distribution Transformer Supply Chain Act, which would limit and repeal the Department of Energy’s power to propose, finalize, implement, administer or enforce any energy efficiency standards for distribution transformers over the next five years.

Under the proposed law, all distribution transformers would be required to shift from industry-standard grain-oriented electrical steel (GOES) cores to amorphous steel cores, which make up 95% of the U.S. distribution transformer market.

“The Biden Administration’s war on American energy continues to make it harder to produce affordable energy for Americans while raising costs for families across the country,” said Senator Tillis. “I am proud to co-introduce this legislation to stop President Biden from implementing any new anti-American rules on distribution transformers, ensuring we don’t face supply chain shortages.”

In December 2022, the Department of Energy proposed new energy efficiency standards for low-voltage dry-type distribution transformers, medium-voltage, dry-type distribution transformers and liquid-immersed distribution transformers. If approved, the new standards will yield “minor energy savings and further disrupt the nation’s supply chain by causing lead times to procure transformers to increase from months to years,” according to a statement from Senator Tillis.

In the same statement, Senator Tillis mentioned several organizations that have “sounded the alarm” on the Department of Energy’s proposal, including the Edison Electric Institute, the American Public Power Association, the National Electrical Manufacturers Association, the National Rural Electric Cooperative Association and the National Association of Homebuilders.