The battle over amorphous steel for distribution transformers continues, now with the U.S. Senate weighing in. A bipartisan group of senators introduced legislation in response to the proposed Department of Energy (DOE) rule requiring manufacturers to move from using grain-oriented electrical steel (GOES) for distribution transformer cores—the equipment that transfers power from high-voltage transmission lines to residential and business lines—to amorphous steel, which some consider more environmentally friendly and less wasteful of energy.

Named the Distribution Transformer Efficiency & Supply Chain Reliability Act and led by Sens. Sherrod Brown (D-Ohio) and Ted Crux (R-Texas), and based on recommendations by the National Electrical Manufacturers Association (NEMA), its intention is to stabilize the supply chain and ensure long-term energy efficiency for the production of distribution transformers.

Domestic steel producers endorse this legislation, but not all groups agree with it. They believe amorphous steel will lower the cost of core production.

Currently, there is a two-year backlog of distribution transformer production, according to Debra Phillips, president and CEO of NEMA. “This bipartisan group of senators understands the record-high demand and ongoing supply chain challenges facing manufacturers and [is] responding by providing legislative direction and much-needed regulatory certainty.”

If passed, the bill would restrain the DOE’s power to institute efficiency standards for distribution transformers above a plane known as trial standard level 2. TSL 2 levels can be achieved with GOES and amorphous steel; however, sole use of amorphous steel is necessary on products made to specifications higher than TSL 2 to achieve efficiency gains. The DOE requires critical grid components to be no less than 97.7% efficient.

More than 95% of distribution transformers are currently made with GOES. With Conway, S.C.-based Metglas Inc. as the sole U.S. producer of amorphous metal (a nontraditional steel) to form the cores of distribution transformers, production is incapable of meeting current and future demand.

Thirteen Democrats and 33 Republicans sent a letter penned by Sen. Bill Hagerty (R-Tenn.) to DOE Secretary Jennifer Granholm, urging the department not to impose the final rule, which they believe could significantly disrupt supply chains by requiring manufacturers to shift to amorphous steel.

If the DOE’s proposed rule requiring use of amorphous steel takes effect in June as scheduled, there is concern that lead time to produce distribution transformers would extend beyond 2 years, delaying improvements in grid resiliency, as well as construction and e-mobility projects.

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