Howard Announces Plan for Implementation of

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July 19, 2013—Howard Announces Plan for Implementation of Amended
Transformer Efficiency Standards
On April 18, 2013, The U.S. Department of Energy’s Office of Energy Efficiency
and Renewable Energy published its amended efficiency standards for
distribution transformers, Part II, 10 CFR Part 431, Energy Conservation
Program: Energy Conservation Standards for Distribution Transformers: Final
Rule. In this final rule, DOE is adopting more stringent energy conservation
standards than those mandated in its earlier rule published in October of 2007.
Compliance with the amended standards in this Part II final rule is required for all
covered transformers as of January 1, 2016. A link to the docket web page can
be found at: http://www.regulations.gov/#!docketDetail;rpp=10;po=0;D=EERE2010-BT-STD-0048.
The table below summarizes Part II amended efficiency standards as compared
with existing efficiencies.
Single-Phase Transformer Efficiency
Amended
KVA
Existing (%)
(%)
10
15
25
37.5
50
75
100
167
250
333
500
667
833
98.62
98.76
98.91
99.01
99.08
99.17
99.23
99.25
99.32
99.36
99.42
99.46
99.49
98.70
98.82
98.95
99.05
99.11
99.19
99.25
99.33
99.39
99.43
99.49
99.52
99.55
Three-Phase Transformer Efficiency
Amended
KVA
Existing (%)
(%)
15
98.36
98.65
30
98.62
98.83
45
98.76
98.92
75
98.91
99.03
112.5
99.01
99.11
150
99.08
99.16
225
99.17
99.23
300
99.23
99.27
500
99.25
99.35
750
99.32
99.40
1000
99.36
99.43
1500
99.42
99.48
2000
99.46
99.51
2500
99.49
99.53
Transformer manufacturers and customers should begin now to plan an orderly
transition process. Many distribution transformer designs sold today do not meet
the amended (Part II) efficiency standards and must be re-designed. The Part II
efficiency standards will in some cases result in heavier and larger transformers.
Manufacturers must plan and implement design and production changes in order
to build these higher-efficiency transformers. In addition, raw material suppliers
need sufficient time to plan for changes in demand for core steel, magnet wire
and other components parts.
Howard Industries has already begun its transition planning process. Our
marketing, engineering, purchasing, manufacturing, quality assurance and
transportation departments are working to determine what process changes will
be necessary. We expect to complete the manufacturing transition in our factory
Howard Industries, Inc.
7/19/2013
Page 1 of 2
to Part II-compliant transformers in the latter part of the third quarter of 2015,
which will allow adequate time to complete the manufacture of any existing
designs that might still be in production at that time and to resolve any
contingencies that might occur prior to the January 1, 2016 deadline. In order to
accomplish this, our manufacturing facilities will cease production by September
1, 2015 of any covered designs that do not meet Part II standards.
Customers should finalize plans for the transition and be prepared to start
ordering Part II-compliant transformers prior to the September 1, 2015 production
deadline, allowing for individual contract lead-times. Also, customers should
complete their evaluation of Part II-compliant quotations and issue awards with
sufficient advance notice to allow time for Howard Industries to complete all
engineering designs by July 31, 2015.
Howard marketing personnel and field sales representatives will be in contact
with each of our customers to answer questions and assist in the transition
process. Close coordination between Howard Industries, our customers and raw
material suppliers is essential to insure a smooth transition and to minimize
disruptions in the marketplace. The preliminary transition schedule is
summarized below.
Date
January 1, 2014
March 15, 2015
April 1, 2015
May 1, 2015
July 31, 2015
September 1, 2015
September 30, 2015
January 1, 2016
Howard Industries, Inc.
7/19/2013
Transition Schedule for Covered Designs
Begin the Part II re-design process for existing blanket contracts
All new blanket-contract quotations must be Part II compliant
Begin production of Part II compliant designs (along with existing designs)
All new spot-buy quotations must be Part II compliant
Complete the Part II re-design process for existing blanket contracts
All designs beginning production process must be Part II compliant
All designs completing production process must be Part II compliant
Official DOE compliance date
Page 2 of 2
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