California Energy Commission Rebuffs the Consumer Electronics Association and Announces Move to Implement Strict Restrictions on TV Power Use
Consumer electronics/green energy regulations: Despite the objections of major players in the consumer electronics industry, the California Energy Commission announced today (September 18, 2009) that it intends to move ahead with restrictions on television power use that were originally proposed by the energy industry. Under the proposed rules, all new televisions sold in California with a screen size less than 1400 square inches must meet the following standards:
• Tier I (effective January 1, 2011): limited to 1 watt of power while in "passive stand-by" mode and to 0.20 watts x screen area (in square inches) + 32 while in "on mode."
• Tier II (effective January 1, 2013): limited to 1 watt of power while in "passive stand-by" mode and to 0.12 watts x screen area (in square inches) + 32 while in "on mode."
Televisions with a screen size equal to or less than 1400 square inches -- which corresponds roughly to a 58" screen size -- were intentionally omitted from the proposed standards. This concession was in response to objections from many small retailers who sell high-end specialty home theatres that consist almost entirely of screen sizes greater than 58". However, the Commission indicated that it intends to regulate power consumption in these large screen models in a second rulemaking phase.
Effective on January 1, 2011, all TVs would also be required to have a "power factor" of at least 0.9 for units with a power usage greater than or equal to 100 watts. The term "power factor" refers to a TV's maximum draw from the power grid. For example, if a 100 watt TV works by drawing 200 watts from the grid for 0.5 seconds, it would have a power factor of 0.5 (100 watts divided by 200 watts). Many TVs work by drawing a large amount of power from the grid, storing it, using it, and then drawing more power. According to the Commission, these types of designs are energy inefficient, because they lose more energy via heat. Mandating a minimum 0.9 power factor eliminates these types of designs.
In addition to these power restrictions, the Commission also plans to implement: (i) a luminance performance requirement under which a TV's power use in "default mode" can be no greater that 65% of its luminance in its brightest most, (ii) a requirement that all TVs enter standby-passive mode after a maximum of 15 minutes without user input, and (iii) a requirement that all televisions be marked with their on-mode power consumption.
These new standards were adopted over the objections of the Consumer Electronics Association (CEA), which argued that a substantial number of TV manufacturers are not currently able to meet these standards and would be forced out of the California market. (See our blog post of June 18, 2009). Commission staff countered that the proposed standards are technically feasible with existing technology. According to Commission's Staff Report, "New super efficient LCD models have been introduced to market including 50 inch and larger models from Sharp and Samsung that meet the proposed Tier 2 Standard, 3 years before its effective date." The Staff Report also indicated that there are some large screen plasma TVs that will be able to meet the new standards, as well.
According to the Commission Staff Report, the new standards would save California 6,515 gigawatt-hours of energy consumption annually after all existing stock is replaced. The overall energy savings to California consumers would be approximately $8.1 billion and eliminate the need to build an additional gas power plant.
The rules proposed today by the Commission constitute its "45 day language." This means that the rules could be adopted as regulations by the Commission as soon as November 4, 2009. Before acting, the Commission will hold hearings on October 13 and November 4. While there could be a few changes in the final rules, in my view, the Commission is likely to adopt a final rule that looks very much like the draft regulations proposed this morning.
David D. Johnson is a business lawyer whose practice focuses on litigation and other issues relating to digital media and consumer electronics companies. David can be contacted at (310) 785-5371 or DJohnson@jmbm.com.
