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 You would think that a state government presiding over record-setting unemployment statistics and a spiraling economy might stop intruding in the market — at least for a little while. But you would be wrong.
According to news reports, the California Energy Commission (CEC) in Sacramento is considering a new regulation that would ban more than three quarters of all televisions currently on the market by 2013. Because of their alleged high energy consumption, the state would prohibit the TVs from being sold in stores.
"Our concern was that with 35 million televisions in California and 4 million new ones sold every year — the majority of which are flat-screens — electricity use is increasing," explained a spokesperson for the commission quoted by the San Jose Mercury News. "People are using them as DVD players, game players and entertainment centers."
The news has attracted praise from environmentalists and some corporate interests, but critics have blasted and ridiculed the proposal. A large utility company and the biggest seller of flat screen TVs both endorsed the proposed regulations. But consumer groups, industry representatives and opponents of big government have condemned the measure, set to be voted on as early as November, going progressively into effect starting in 2011.
"Such regulation undercuts innovation, it does harm consumers," charged Doug Johnson, the senior director of technology policy for the Consumer Electronics Association. "Voluntary efforts are succeeding without regulation." He also warned that the proposal would eliminate jobs and further hurt the economy. The state “has chosen to ignore alternatives and input, and small businesses and consumers in California will pay the price."
The group also released a study showing the Energy Commission’s new rules would cost the state $50 million in tax revenue while destroying almost 5,000 jobs. In addition, businesses will close, prices will rise, competition will decrease and popular TVs will become illegal. The study, conducted by Resolution Economics, also illustrated that energy efficiency was already on the rise without government regulations. The group pleaded with the commission to allow consumers and the market to decide.
Other groups joined in opposing the rules too, including Best Buy, the Plasma Display Coalition and local retailers. “But those pleas didn't appear to elicit much support from commissioners at a public hearing on the proposed rules” that was held Tuesday, reported the Los Angeles Times. There will now be a comment period for the public to weigh in, but the government seems determined to impose its will.
Environmentalists cheered on the commissioners. "The goal here is a simple one," explained Natural Resources Defense Council scientist Noah Horowitz to the commission. "We want to ensure that every TV sold in California is an efficient one." The Environmental Defense Fund supports the rule too. Supposedly the measure may be able to help California live up to its 2006 anti-global warming law to cut “greenhouse gas” emissions by a quarter within the next decade.
But local businesses are joining the fight too. “The way the rules have been rolled out today, it would probably cause us to go out of business - 165 people would be without jobs and a 61-year-old company would no longer exist,” predicted Steven Caldero of Ken Crane’s Big Screen Headquarters, a TV retailer. “This law seems to be really something that is a law looking for a reason to exist.”
According to the CEC, almost 10 percent of home energy usage is from TVs and associated devices. It estimates that the new regulations could save each household $30 per year through reduced electricity usage on a TV. One of the commissioners, Julia Levin, said: "There is no dispute TVs do consume a large amount of electricity in California." But that is not the point.
Such regulations should be beyond the scope of government. This new intrusion into the market will have unintended effects while reducing consumer choice, and it will simply further hurt the already bad economy of California.
Analysts have predicted that the measure will be approved and speculated that it could spark a trend that would spread to other states. But Americans and Californians should ensure that it does not. Electing candidates who understand that energy consumption levels are outside the proper role of government and educating the populace about the benefits and morality of the free market can help reverse this troubling trend. But it must happen soon, while there is still a semblance of a market economy left to save.
Alex Newman is an American freelance writer and the president of Liberty Sentinel Media, Inc., a small media consulting firm. He is currently living in Sweden and has spent most of his life in Latin America, Europe and Africa. He has a degree in foreign languages and speaks Spanish, French, Portuguese, German, Italian and a little Swedish and Afrikaans. In addition, he earned a degree in journalism from the University of Florida, with emphasis on economics and international relations.
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