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

Fall Leadership Meeting
Oct 26, 2026
Watch Video Highlights from 2026 Fall Leadership Meeting

NAHB members who were unable to join us in Detroit for the 2026 Fall Leadership Meeting can watch some of the highlights on nahb.org.

Economics
Oct 23, 2026
Multifamily Developers: How Are Rising Costs Impacting Your Business?

In 2022, NAHB estimated regulation accounts for over 40% of the cost of a new multifamily development — a key data point in lobbying federal, state and local policymakers against policies that drive up the cost of new housing. This widely cited estimate is now outdated, so NAHB is conducting a survey to update it and needs your help to do so.

View all

Latest Economic News

Economics
Oct 26, 2026
Uptick for Non-Conventional Financing in 2025

Nationwide, the share of non-conventional financing for new home sales accounted for 32.4% of the market, according to NAHB analysis of the 2025 Census Bureau Survey of Construction (SOC) data.

Economics
Oct 23, 2026
A Quarter of Remodelers Started ADUs Over Past Twelve Months

When asked if remodelers started a project involving an Accessory Dwelling Unit (ADU) over the past twelve months, 24% indicated that they were building an addition for use as an ADU and 23% indicated that they were converting an existing space to an ADU, according to NAHB’s Remodeling Market Index (RMI).

Economics
Oct 23, 2026
Slabs Overtake Basements in the East North Central Division

Nearly three-quarters of new single-family homes started in 2025 were built on slab foundations, according to NAHB analysis of the U.S. Census Bureau’s Survey of Construction (SOC).