Electricity transformers

(a) Defense Production Act There is authorized to be appropriated $2,100,000,000 for the President, acting through the Secretary of Energy, under the authority of title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.), to expand domestic manufacturing of transformers and grid components, including amorphous steel, grain-oriented electrical steel, flexible transformers, circuit breakers, switchgear and substations to serve load and interconnect generation, and inverters and optimizers to integrate the influx of distributed generators. (b) Strategic Transformer Resilience Program (1) Definitions In this section: (A) Bulk-power system; Electric Reliability Organization The terms bulk-power system and Electric Reliability Organization have the meanings given those terms in section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)). (B) Independent System Operator; Regional Transmission Organization; State regulatory authority The terms Independent System Operator, Regional Transmission Organization, and State regulatory authority have the meanings given those terms in section 3 of the Federal Power Act (16 U.S.C. 796). (C) Secretary The term Secretary means the Secretary of Energy. (2) Strategy and report (A) In general Not later than 18 months after the date of enactment of this Act, the Secretary shall develop a strategy, and submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report identifying methods— (i) to ensure that large power transformers, generator step-up transformers, power conversion equipment, grain-oriented electrical steel, and other critical electric grid equipment is strategically located to ensure timely replacement of that equipment as necessary to rapidly restore operation and proper functioning of the electric grid in the event of severe damage to the electric grid due to physical attack, cyber attack, electromagnetic pulses, geomagnetic disturbances, severe weather, climate change, or seismic events; and (ii) to facilitate the transportation of large power transformers, generator step-up transformers, power conversion equipment, grain-oriented electrical steel, and other critical electric grid equipment. (B) Considerations (i) In general In developing the strategy under paragraph (1), the Secretary shall consider the need for, and the feasibility of establishing, 1 or more federally owned strategic equipment reserves, as appropriate, to ensure nationwide access to large power transformers, generator step-up transformers, power conversion equipment, grain-oriented electrical steel, and other critical electric grid equipment. (ii) Existing programs In carrying out subparagraph (A), the Secretary may consider existing spare transformer and equipment programs and requirements established by the private sector, Regional Transmission Organizations, Independent System Operators, and State regulatory authorities. (C) Consultation required In carrying out this subsection, the Secretary shall consult with— (i) the Federal Energy Regulatory Commission; (ii) the Electricity Subsector Coordinating Council; (iii) the Electric Reliability Organization; (iv) manufacturers of large power transformers, generator step-up transformers, power conversion equipment, grain-oriented electrical steel, and other critical electric grid equipment; (v) owners and operators of critical electric infrastructure (as defined in section 215A(a) of the Federal Power Act (16 U.S.C. 824o–1(a))); and (vi) owners and operators of military installations (as defined in section 2801(c) of title 10, United States Code) and defense sites (as defined in section 2710(e) of that title), including facilities designated as critical defense facilities under section 215A(c) of the Federal Power Act (16 U.S.C. 824o–1(c)); (3) Transformer resilience program In addition to the strategy developed under subsection (b), the Secretary shall establish a program— (A) to improve large power transformers, generator step-up transformers, power conversion equipment, grain-oriented electrical steel, and other critical electric grid equipment by reducing vulnerabilities identified with respect to that equipment; (B) to develop, test, and deploy innovative equipment designs, including modular designs, that are more flexible and offer greater resiliency with respect to the operation and functioning of the electric grid; (C) to coordinate with industry and manufacturers to standardize large power transformers, generator step-up transformers, power conversion equipment, and other critical electric grid equipment; (D) to monitor and test large power transformers, generator step-up transformers, power conversion equipment, and other critical electric grid equipment that the Secretary determines may pose a risk to the bulk-power system or national security; and (E) to facilitate the domestic manufacturing of large power transformers, generator step-up transformers, power conversion equipment, grain-oriented electrical steel, and other critical electric grid equipment through— (i) the issuance of grants and loans; and (ii) the provision of technical support. (4) Requirement (A) In general All laborers and mechanics employed by contractors or subcontractors in the performance of construction, alteration, or repair work carried out, in whole or in part, with financial assistance made available under this section shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. (B) Authority With respect to the labor standards specified in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. (5) Authorization of appropriations There is authorized to be appropriated to carry out this subsection $75,000,000 for each of fiscal years 2026 through 2030, to remain available until expended.