Washington, D.C. – U.S. Senators Catherine Cortez Masto (D-Nev.) and Jerry Moran (R-Kan.) introduced the Credit Incentives for Resilient Critical Utility Infrastructure and Transformers (CIRCUIT) Act to encourage the production of electric distribution transformers – devices that take high-voltage electricity from power lines and reduce it to lower voltage levels suitable for homes, businesses, and other end-users.
The U.S. is in the middle of unprecedented demand for power transformers, which has left the energy sector uncertain about the stability of the future grid. Current production is unable to keep up with demand from new housing, data centers and more. This legislation would expand the Advanced Manufacturing Production Credit (45X) passed as part of the Inflation Reduction Act to include distribution transformers to bolster the domestic energy economy.
“Nevada is leading the way in 21st Century energy technologies and manufacturing, and we need more distribution transformers to connect new sources of energy and power to the grid,” said Sen. Cortez Masto. “Our bipartisan legislation to boost the production of distribution transformers is critical for lowering energy costs, supporting energy resiliency, and strengthening our national security.”
“Demand for energy and power is continuing to grow in Kansas and across the country as housing, businesses and transportation needs expand,” said Sen. Moran. “Creating a tax credit to incentivize domestic production and manufacturing of distribution transformers will help the United States move closer to energy independence, provide jobs and keep up with rising demands.”
“Distribution transformers are essential to a reliable electrical grid that supports our nation’s critical infrastructure,” said Debra Phillips, President and CEO of National Electric Manufacturers Association (NEMA). “NEMA thanks Senators Moran (KS) and Cortez Masto (NV) for their leadership on the bipartisan CIRCUIT Act that will ensure domestic manufacturers of distribution transformers qualify for the 45X tax credit, intended for advanced manufacturing of critical energy components. The CIRCUIT Act will also help mitigate supply chain issues that distribution transformers have faced while encouraging continued on-shoring and domestic production. We look forward to continuing to work with our bipartisan partners in Congress to create solutions that boost the resilience of our nation’s electrical grid and expand U.S. manufacturing in critical supply chains.”
“For years, public power utilities across the country have faced a severe and ongoing shortage of distribution transformers,” said Scott Corwin, President & CEO, American Public Power Association. “This critical shortage threatens grid reliability, delays storm recovery, and dampens economic development. The American Public Power Association applauds Senators Moran and Cortez Masto for introducing the CIRCUIT Act to incentivize domestic manufacturing of distribution transformers, and we urge its swift enactment.”
“Expanding the manufacturing credit to include distribution transformers will help give domestic manufacturers needed certainty as they work to ensure a resilient national supply chain for electric cooperatives and other utilities,” said Jim Matheson, CEO of the National Rural Electric Cooperative Association. “We thank Sens. Moran and Cortez Masto for introducing this legislation, which is critical to strengthening the domestic energy economy and assisting co-ops in their mission to provide safe, reliable and affordable power to their members.”
The full text of the bill can be found here.
As part of her Innovation State Initiative, Senator Cortez Masto has led efforts in Congress to support Nevada’s energy industries and cut through red tape, while lowering costs for families. At a Senate Energy and Natural Resources Committee hearing last March, she discussed the need to speed up interconnection processes with FERC nominees.
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