Bipartisan Senate Bill Would Help Increase Output of Transformers

Legislative
Published
Contact: Alex Strong
[email protected]
Senior Director, Federal Legislative
(202) 266-8279

With the strong backing of NAHB, Sens. Sherrod Brown (D-Ohio) and Ted Cruz (R-Texas), along with several other senators, introduced legislation to help ease the severe shortage of distribution transformers that is delaying home building projects and raising housing costs.

The Distribution Transformer Efficiency & Supply Chain Reliability Act of 2024 would establish a new standard that allows manufacturers to increase energy efficiency standards for transformers in a manner that will not delay production at a time when chronic shortages are harming the housing sector.

“NAHB commends Sens. Brown and Cruz for their leadership in bringing forward this strong bipartisan legislation that will give producers flexibility in the manufacturing process to increase the efficiency of distribution transformers and allow them to ramp up production to meet historic demand,” said NAHB Chairman Alicia Huey.

The Department of Energy (DOE) has proposed a rule that would marginally increase efficiency standards on distribution transformers and effectively require all distribution transformers to shift from the industry standard grain oriented electrical steel (GOES) cores to amorphous steel cores. GOES currently accounts for more than 95% of the domestic distribution transformer market, and manufacturers’ production lines are tooled for designs that use GOES. If the DOE proposal is enacted, it will further curtail the production of transformers at a time when they are needed now, more than ever.

The Senate bill would provide for increased energy efficiency of transformers, but at levels that preserve market opportunities for GOES as well as amorphous steel. Furthermore, the legislation would provide a phase-in window of 10 years before the new standard goes into effect to provide the certainty and time necessary for GOES and transformer supply chains to properly adapt to the new standards without further exacerbating supply-chain challenges.

Other bill cosponsors include Sens. Ted Budd (R-N.C.), Bob Casey (D-Pa.), John Fetterman (D-Pa.), Bill Hagerty (R-Tenn.), Joe Manchin (D-W.Va.), Pete Ricketts (R-Neb.), Marco Rubio (R-Fla.), Kyrsten Sinema (I-Ariz.), Jon Tester (D-Mont.) and Todd Young (R-Ind.).

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Education at IBS | Economics

Nov 05, 2025

5 Economic Forecasts to Help Plan for 2026

Every year, NAHB and other industry experts and economists bring their latest insights to the NAHB International Builders’ Show® (IBS). Register today and make sure to check out these sessions for the latest economic forecasts to help your business in 2026.

Workforce Development

Nov 04, 2025

California Homebuilding Foundation Advances Education, Workforce and Industry Leadership

As California faces a growing need for skilled trades workers and affordable housing, the California Homebuilding Foundation is helping students find careers in the industry.

View all

Latest Economic News

Economics

Nov 05, 2025

Bedrooms in New Single-Family Homes in 2024

Three-bedroom single-family homes reached their largest share of starts since 2011 and remained the most prevalent number of bedrooms among new homes.

Economics

Nov 04, 2025

The International Builders’ Show: The Leading Economic Forecast Event of the Year

Every year, NAHB and other industry experts and economists bring their latest insights to the NAHB International Builders’ Show® (IBS). For 2026, IBS offers an unparalleled lineup of IBS Education sessions that cover every sector of the housing industry: single-family, multifamily, remodeling, design trends, and building materials.

Economics

Nov 03, 2025

Laundry Room Locations in New Homes and Apartments, 2024

In 2024, most new single-family homes included laundry connections on the first floor (70%), according to the Census Bureau’s Survey of Construction. The first floor is also where most customers prefer to have the laundry, as shown in Chapter 2 of What Home Buyers Really Want.