To Regulate or Not to Regulate - California considers mandate for TV energy efficiency.

When it comes to environmental policy and regulation, it’s often said that, as goes California, so goes the nation. From clean air to fuel efficiency, the Golden State has led the pack in its attempts to regulate for the sake of the environment. Perhaps that’s why a new California Energy Commission proposal is turning heads in the consumer electronics industry.

The CEC has focused its attention on the issue of energy consumption by flat-panel televisions. The Commission estimates that TV viewing (which includes the television and any connected playback and recording equipment) is responsible for about 10 percent of all residential electricity use in California, and growing screen sizes, higher sales and increased usage present a growing problem.

As such, the CEC has put forth a proposal that would require all televisions sold in California to meet certain energy-efficiency standards beginning in 2011. The Commission is recommending a two-tier approach: Tier 1, which would take effect in 2011, is estimated to reduce TV energy consumption by about 33 percent. The more stringent Tier 2 standard would take effect in 2013 and, in concert with the Tier 1 standard, would reduce TV energy consumption by an estimated 49 percent. (See Figure 1 for the actual formula that will be used to determine a TV’s energy efficiency.)

Should the proposal be approved, all California retailers—big-box chains or specialty A/V stores—would only be allowed to sell models that meet said standards. Such action is certainly not unprecedented in California: The CEC has already put similar regulations on refrigerators, air conditioners, lighting and other products, and has reportedly seen tangible results. The group claims the new TV standard could save consumers from $18 to nearly $30 per year, per television. More importantly, it estimates that the Tier 1 standard would save 3,831 gigawatt hours (GWh) per year, while the Tier 2 standard would save 2,684 GWh per year.

The proposal is supported by all three major California electric utility companies (Pacific Gas and Electric, San Diego Gas and Electric and Southern California Edison), as well as the National Resources Defense Council, the LCD Manufacturers Association and TV manufacturer Vizio, among others.

Not everyone is on board, though. One major voice of opposition is the Consumer Electronics Association, which believes the forced regulation could place undue burden on TV manufacturers and be detrimental to the state, causing job losses and lower tax revenue. One concern is what happens when a consumer can’t purchase the TV model that he or she really wants because it doesn’t meet the proposed standard. What’s to keep them from simply turning to an online retailer? This is a particularly troublesome result for the smaller specialty A/V retailer that can’t afford any potential loss in sales.

The CEC counters that TV manufacturers are already working to reduce energy consumption and claims that 400 current models already meet the Tier 1 standard. It is also in talks with major online retailers regarding the issue of non-compliant TV sales.

The Commission is expected to vote on the proposal this summer; you can find more information at energy.ca.gov.