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Amendment to Strengthen National Defense Authorization Act Urges Support for Critical Transformer Production Initiative
Representative Chrissy Houlahan (D-PA) is leading a crucial amendment to the National Defense Authorization Act (NDAA) alongside Reps. Jack Bergman (R-MI), Lisa McClain (R-MI), and Rob Wittman (R-VA) to address a pressing threat to national security: the shortage of domestic large power transformers (LPTs) and distribution transformers. This amendment highlights the vital connection between grid security and national security, ensuring that our military’s readiness and operational capacity are not compromised by vulnerabilities in our electrical infrastructure.
The Niskanen Center is urging Congress to recognize the urgency of the U.S.’s transformer shortage, which is expected to worsen as demands on the electrical grid increase. Currently, the U.S. heavily relies on foreign sources for these critical components, leading to wait times of up to two years. This dependence poses an immediate threat to the Department of Defense’s (DoD) mission-critical operations and personnel readiness.
Conrad LaJoie, Niskanen’s energy and climate government affairs manager, emphasized the importance of supporting this crucial amendment, stating, “By reinforcing our domestic production capabilities and securing our supply chains, we can ensure that our military remains ready and resilient to safeguard our national security, and support American jobs and industry.”
The amendment calls for the military departments to develop a briefing and report, in coordination with the Department of Energy (DOE), to utilize the 2022 Defense Production Act (DPA) expansion to enhance domestic production of transformers and other grid components. This initiative aims to secure supply chains and strengthen 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 assess the national security risks associated with insecure supply chains for LPTs and distribution transformers, analyze the market impacts of efficiency standards, and propose strategies to enhance domestic manufacturing and workforce capacity, with a focus on critical materials and technology. Additionally, it will explore the potential use of DPA funding for increased production, the establishment of a “virtual strategic reserve” with DOD purchasing authority, and support for workforce development to bolster national security and promote American manufacturing.
The Niskanen Center, a 501(c)(3) advocacy organization established in 2014, is dedicated to influencing public policy through direct engagement in the policymaking process. This amendment to the NDAA represents a critical step towards strengthening our national security and ensuring the resilience of our electrical infrastructure.
