Representative Chrissy Houlahan (D-PA), along with Reps. Jack Bergman (R-MI), Lisa McClain (R-MI), and Rob Wittman (R-VA), are spearheading a critical amendment to the National Defense Authorization Act (NDAA) aimed at tackling the shortage of domestic large power transformers (LPTs) and distribution transformers. This amendment emphasizes the vital connection between grid security and national security, ensuring military readiness and operational capacity remain uncompromised.

The Niskanen Center highlights the urgency of addressing the U.S.'s transformer shortage, which is predicted to worsen with increasing electrical grid demands. The U.S. heavily relies on foreign sources for these critical components, facing wait times of up to two years. This dependency threatens the Department of Defense’s (DoD) mission-critical operations and personnel readiness.

“We urge Congress members to support this crucial amendment,” said Conrad LaJoie, Niskanen’s energy and climate government affairs manager. “By reinforcing our domestic production capabilities, we can ensure military readiness, safeguard national security, and support American jobs.”

Amendment Overview: The amendment calls for military departments to develop a briefing and report, in coordination with the DOE, leveraging the 2022 Defense Production Act (DPA) expansion to boost domestic production of transformers and other grid components. It aims to secure supply chains and bolster domestic manufacturing capacity for key materials like Grain Oriented Electrical Steel (GOES), amorphous steel, and Non-Oriented Electrical Steel (NOES).

The briefing and report will analyze national security risks, market impacts of efficiency standards, and strategies to enhance domestic manufacturing and workforce capacity. It will explore leveraging DPA funding, establishing a “virtual strategic reserve” with DOD purchasing authority, and supporting workforce development to strengthen national security and promote American manufacturing.

Source: https://www.niskanencenter.org/