Bipartisan Senate Bill Would Help Increase Output of Transformers
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.).
Latest from NAHBNow
Apr 09, 2026
Remodeling Market Sentiment Edges Down but Remains Positive in First QuarterThe National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the first quarter, posting a reading of 62. While this reading is down two points from the previous quarter, it is still solidly in positive territory.
Apr 08, 2026
Watch Livestream of Virtual Spring Board of Directors MeetingThe NAHB Board of Directors will convene virtually on Tuesday, April 14, at 10 a.m. ET. A livestream is available on nahb.org for NAHB members and HBA executive officers who would like to observe the meeting.
Latest Economic News
Apr 09, 2026
Remodeling Market Sentiment Edges Down but Remains Positive in First QuarterIn the first quarter of 2026, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 62, down two points compared to the previous quarter. Despite this decline, the overall reading has been solidly in positive territory since Q1 2020.
Apr 08, 2026
Remodelers Saw Profit Margin Gains in 2024Profitability for residential remodelers reached its highest level in more than two decades in 2024. Industry-wide profit benchmarks are important because they allow companies to evaluate their financial performance in context with the industry.
Apr 07, 2026
Rising Rates Weigh on Mortgage ActivityMortgage application activity decreased month-over-month as the 30-year fixed mortgage rate rose. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, declined 4.3% from February on a seasonally adjusted basis but remained 30.8% higher than a year earlier.