By NYU Staff

Source: California Energy Commission

The Federal Communications Commission (FCC) is the most well known regulator of network television, but who knew state energy commissions would join in the regulation game?

The California Energy Commission adopted the nation’s first energy-efficiency standards for televisions on November 18th. The Commission’s move signals a proactive push to lower energy usage, particularly by highly popular flat screen TVs.

According to a yahoo news article, the commission estimates that TVs account for about 10 percent of a home’s electricity use. And Californians buy about 11 percent of the 35.4 million TVs sold in the U.S. each year, according to the article.  The commission fears that the energy strain will increase as the prices of flat screens come down further, making it more affordable for and attractive to consumers.

Efficiency regulations will be phased in beginning in 2011, but standards will be even tougher in 2013, since a mere 25% of all TVs currently on the market meet the Commission’s requirements.

Proponents of the new standards argue that the new standards will ultimately save consumers money, help protect public health, and bolster innovation.

But those that oppose the measures say it will stifle innovation and cost jobs. Gary Shapiro, president and CEO of the Consumer Electronics Association (CEA) wrote in the San Francisco Chronicle’s Open Forum page:

“The proposed regulations set arbitrary limits on TV energy use, thereby banning the sale of TVs that do not meet the standards.   Rather than tackle these challenges head-on, the commission is pursuing rigid regulations that will harm California’s economy and stifle innovation.”

He continued: “An economic study by LECG estimates that it will cost California $47 million a year in lost tax revenues and destroy more than 4,000 jobs, largely tied to local retailers, installers and distributors. With California facing its highest unemployment rate since World War II, job-killing measures should not be up for discussion.”

Some flat screen manufacturers like Vizio, Inc are ready for the challenge.
My guess is that the CEA is in a losing battle.  Although jobs are a strong argument against the new regulations, it sounds more like Shapiro’s reaching for a sensational word in this environment with 10.2% national unemployment rate.

As the 3rd largest state in the U.S., California’s push is likely to compel other states to follow suit.  Even if the state incurs a small blip in job “losses,” I’m more inclined to think jobs will be created in the long-run, as innovation is called upon to bring the TVs up to standard.