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Breaking the Gridlock: Legislation Aims to Fix Distribution Transformer Supply Chain

7 Dec 2023

In a significant move to address the critical shortage of distribution transformers impacting home construction projects nationwide, the National Association of Home Builders (NAHB) has expressed its support for the Protecting America's Distribution Transformer Supply Chain Act (H.R. 4167). This legislation, praised by the NAHB, is poised to bring certainty to transformer manufacturers grappling with a broken supply chain that has led to delays in home construction and worsened the housing affordability crisis across the country.

The proposed Act aims to revoke the Department of Energy's authority to set energy efficiency standards for distribution transformers for the next five years. The NAHB strongly opposes the DOE's proposal to increase energy conservation standards for transformer production, citing concerns that it would exacerbate an already acute supply-chain shortage.

In a letter to Committee Chair Cathy McMorris Rodgers (R-Wa.), Lake Coulson, NAHB Senior Vice President and Chief Lobbyist, reiterated the association's support for H.R. 4167. Coulson highlighted the ongoing supply chain delays, noting that wait times for transformers often range from 12 to 24 months, with some cases reaching up to three years. The lack of transformers has led to thousands of home building projects being put on hold, and transformer prices have surged by as much as 85% since 2018.

The NAHB remains committed to collaborating with Congress, advocating for additional funding to boost the production of distribution transformers to meet market demand and mitigate the challenges faced by homebuilders.

Source: hbsdealer.com

US
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