Distribution Transformer Efficiency and Supply Chain Reliability Act of 2024

HR 7171, the Distribution Transformer Efficiency and Supply Chain Reliability Act of 2024, prevents the Department of Energy from finalizing rules requiring liquid-immersed or dry-type distribution transformers to meet efficiency standards stricter than "trial standard level 2" (as outlined in a 2023 proposed rule). The bill also mandates that any finalized rule implementing "trial standard level 1" or "level 2" efficiency standards cannot take effect for at least 10 years after the rule's finalization date. This directly affects transformer manufacturers and utilities by delaying stricter efficiency requirements and providing extended compliance timelines. The bill aims to stabilize the supply chain for these critical grid components by limiting near-term regulatory changes.