California has a long history of leading the nation in a number of fields, including entertainment, agriculture, technology, and, unfortunately, government regulation.
The California Energy Commission’s latest proposed regulatory experiment,the imposition of “energy efficiency” standards on California’s TV retailers,runs contrary to all reason and common sense. It is, in the most literal sense of the word, absurd.
With the state’s unemployment rate at 11.5%, the highest since World War II, one would think that the introduction of a new regulation that is sure to have a negative impact on the economy would be the very last thing on state regulators’ minds. Yet, that is exactly what the California Energy Commission has done with its newest proposal, which, if enacted, would effectively ban the sale of 25% of liquid crystal display and plasma big-screen TVs currently on the market.
Some TV makers that this regulation could affect include Irvine-based Vizio Inc., Irvine’s Mitsubishi Digital Electronics America Inc. and ViewSonic Corp., which is based just across the county line in Walnut. Local distributors and sellers also would be affected.
The California Energy Commission intentions may be noble, but this is one instance in which California’s regulators are clearly taking the wrong approach. The commission claims their regulation will save consumers $18 to $30 a year per TV, but what they do not mention is that enactment of this regulation would cause California to lose $50 million a year in tax revenue,revenue that likely will end up in the treasuries of other states. The reality is that the commission does not have the ability to stop consumers from purchasing “banned” TVs online or across state lines, meaning that out-of-state and overseas retailers will benefit from California’s economic loss.
What’s more, this proposal will effectively destroy 4,600 jobs that are tied to television sales, distribution and installation. In the midst of the worst economic crisis since the Great Depression, regulators should be looking for ways to come up with forward-thinking solutions that will keep California’s economy moving. Instead, they are introducing measures that will actually take jobs away from hard-working Californians at a time we can least afford it.
No other state in the country regulates the energy consumption of its television sets, and for good reason; not only is this a job and business killer, it is entirely unnecessary. Electronics manufacturers have been working for years with the federal Energy Star program to increase energy efficiency, and their efforts are paying off: Energy Star produced energy savings from all electronics, including TVs, to the tune of 23 billion kilowatt hours of electricity in 2007.
Market competition, not unnecessary regulation, will lead to innovative technologies and increased energy efficiency. The very nature of the electronics industry demands constant evolution in order to keep up with consumer demand. For example, current plasma display coalition screens are 15% more efficient than last year’s models, and LG Electronics recently unveiled an intelligent sensor technology that reduces LCD TV energy consumption by 70%.
These successes have led to increased energy efficiency, new technologies, lower prices and more choices for Californians, and they have been attained without placing an undue burden on small businesses and consumers.
Unfortunately, this situation is playing out in the home theater of the absurd. Rather than looking for ways to help California’s economy, the California Energy Commission seems bent on regulating business and individuals from on-high without regard to the consequences. Free-market forces are already moving the LCD TV market toward energy efficiency,let’s hope the commission steps out of the way and allows it to occur.
Sen. Walters represents the 33rd district in the State Senate, which covers much of inland Orange County. She lives in Laguna Niguel.
