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
Feb 18, 2026
Massachusetts Builder Elected Second Vice Chairman of NAHBGary Campbell, a Lowell, Mass.-based real estate developer and remodeler with more than 30 years of experience in the construction field, today was elected 2026 second vice chairman of the National Association of Home Builders (NAHB) during the association’s International Builders’ Show in Orlando.
Feb 18, 2026
Colorado Builder and Remodeler Elected First Vice Chairman of NAHBBob Peterson, a Fort Collins, Colo.-based home builder and remodeler with more than 40 years of experience in the construction field, today was elected 2026 first vice chairman of the National Association of Home Builders (NAHB) during the association’s International Builders’ Show in Orlando.
Latest Economic News
Feb 18, 2026
Overall Housing Starts Inch Lower in 2025Despite a strong finish in December, single-family home building dipped in 2025 as persistent affordability challenges continued to weigh on the market.
Feb 18, 2026
How Housing Affordability Conditions Vary Across States and Metro AreasThe NAHB 2026 priced-out estimates show that the housing affordability challenge is widespread across the country. In 39 states and the District of Columbia, over 65% of households are priced out of the median-priced new home market. This indicates a significant disconnect between higher new home prices, elevated mortgage rates, and household incomes.
Feb 17, 2026
Builder Sentiment Edges Lower on Affordability ConcernsBuilder confidence in the market for newly built single-family homes fell one point to 36 in February, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).