WASHINGTON, D.C. — This week, U.S. Representatives Chris Deluzio (D-PA-17) and Mike Kelly (R-PA-16) sent this letter to U.S. Department of Energy Secretary Jennifer Granholm opposing the Biden Administration’s proposed rule to mandate the use of amorphous metal (AM) cores instead of Grain-Oriented Electrical Steel (GOES) cores. GOES cores are used in electrical distribution transformers across the country.

Currently, there is only one facility in the United States producing GOES, located in Butler, Pennsylvania, which is represented by more than 1,300 United Auto Workers (UAW) employees. Implementation of this proposed rule would jeopardize the Butler, Pennsylvania facility, leave the U.S. electrical grid reliant on imports, and potentially cost over 1,500 American jobs.

Moreover, amorphous metal cores rely on imports of raw materials; a dependency that could leave Americans susceptible to a variety of disruptions, from production to shipping. The Department of Commerce has identified this as a threat to national security.

“Finalizing this rule would significantly impact the production of distribution transformers, which are already difficult to obtain,” the Congressmen wrote in their letter. “Grid security and reliability are vital to our economic and national security.  We respectfully urge you to make serious modifications that preserve utilization of GOES for transformer cores to the proposed rule and thank you for your consideration.”

The administration’s proposed rule comes when the supply chain constraint for distribution transformers has grown significantly, with demand exceeding current rates of production. The current lead time for procuring a distribution transformer is more than 16 months.

“This rule would severely limit the ability of our utility providers to ensure grid reliability and security while making us dependent on foreign imports of amorphous metal,” the Members continued.

The Proposed Rule increases efficiency standards on distribution transformers, which are already no less than 97.7% energy efficient.