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New Bipartisan Bill Introduced to Boost U.S. Transformer Production

7 Feb 2025
U.S. Senators Catherine Cortez Masto (D-Nev.) and Jerry Moran (R-Kan.) have introduced the Credit Incentives for Resilient Critical Utility Infrastructure and Transformers (CIRCUIT) Act, aimed at addressing the growing demand for electric distribution transformers. These transformers are crucial for reducing high-voltage electricity from power lines to lower levels suitable for homes, businesses, and other users.

 

The U.S. is facing an unprecedented surge in demand for these essential devices, driven by expanding housing, data centers, and other infrastructure. With current production struggling to meet this demand, the CIRCUIT Act seeks to expand the Advanced Manufacturing Production Credit (45X), part of the Inflation Reduction Act, to include distribution transformers. This move would support domestic manufacturing and bolster the country's energy security.

Senator Cortez Masto emphasized the importance of ensuring that new energy sources are effectively integrated into the grid, particularly in Nevada, which is a leader in energy technologies. She stated, "Our bipartisan legislation is critical for lowering energy costs, supporting energy resiliency, and strengthening national security."

Senator Moran highlighted the rising energy needs across the country, including in Kansas, and expressed that the CIRCUIT Act would promote energy independence, create jobs, and meet growing energy demands.

Industry leaders, including Debra Phillips, President and CEO of the National Electric Manufacturers Association (NEMA), and Scott Corwin, President & CEO of the American Public Power Association, voiced strong support for the bill, stressing its importance in addressing supply chain issues and ensuring a resilient electrical grid.

 

Source: cortezmasto.senate.gov

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