
Last thursday, U.S. Senators Sherrod Brown and Ted Cruz have introduced the "Distribution Transformer Efficiency & Supply Chain Reliability Act of 2024." This legislation came as a response to a proposed Department of Energy standard that could significantly impact the market for grain-oriented electrical steel, jeopardizing approximately 1,500 jobs at Cleveland-Cliffs' Zanesville Works and Butler Works plants. Senator Brown discussed the act in yesterday's news conference call with Michael Beirne, Vice President of External Affairs at American Municipal Power and Executive Director of the Ohio Municipal Electric Association.
The proposed bill aims to block the implementation of the new Department of Energy standard while advocating for the adoption of a different standard for energy-efficient transformers. By doing so, the legislation seeks to maintain market opportunities for Cleveland-Cliffs steel and prevent potential job losses in Ohio's steel industry. Notably, the current DOE standard favors amorphous steel, which is primarily produced outside the United States.
According to Senator Brown, ensuring a reliable supply of efficient transformers made with American materials is crucial for maintaining stable energy costs and grid reliability, particularly for the 12 million people in Ohio. The shift to amorphous steel could not only jeopardize jobs but also lead to longer wait times for new transformers, dependence on foreign steel, and potential shortages in the market.
This bill is supported by the National Rural Electric Cooperative Association; National Electrical Manufacturers Association; Edison Electric Institute; National Association of Home Builders; Leading Builders of America; United Automobile, Aerospace and Agricultural Implement Workers of America (UAW); UAW Local 3303; UAW Local 4104; Cleveland-Cliffs; and Ohio’s Electric Cooperatives.
Industry experts, including Michael Beirne of the Ohio Municipal Electric Association, have raised concerns about the potential ramifications of the proposed energy department policy. Delays in transformer production, increased costs, and supply chain issues could ultimately compromise the reliability of the electrical grid, posing significant challenges for utility providers and consumers alike.
As the Department of Energy moves closer to finalizing its new rule, Senators Brown and Cruz are leveraging legislative action to address the concerns raised by industry stakeholders. Whether the bill will be necessary hinges on the final decision of the energy department, indicating a critical juncture in the ongoing debate over transformer standards and their implications for American jobs and energy infrastructure.
Source: cleveland.com