BILL ANALYSIS
SB 1198
Page 1
Date of Hearing: June 28, 2010
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
SB 1198 (Huff) - As Amended: April 27, 2010
SENATE VOTE : 24-9
SUBJECT : Energy: State Energy Resources Conservation and
Development Commission: regulations
SUMMARY : Prohibits the California Energy Commission (CEC)
updated television energy efficiency labeling regulations from
taking effect or from being enforced until July 1, 2011. On
July 1, 2011 the CEC's labeling regulations will only take
effect if the U.S. Federal Trade Commission (FTC) has not
already issued a national television labeling regulation at that
time.
EXISTING STATE LAW :
1)Requires CEC to adopt regulations describing the standards for
minimum levels of energy efficiency for appliances using a
significant amount of energy.
2)Establishes that CEC require the use of product labeling, not
preempted by federal law, in order to promote the use of
energy efficient appliances so long as it does not result in
added cost for consumers.
EXISTING FEDERAL LAW :
Establishes that FTC adopt appliance labeling rules for
products, such as home appliances, lighting, and plumbing
products, that disclose energy use for each product. These
FTC labels must include EnergyGuide information including the
estimated annual operating energy cost that has been
determined by the U.S. Department of Energy (DOE). FTC does
not currently extend the labeling rule to televisions.
THIS BILL :
3)Delays the implementation and enforcement of CEC television
energy efficiency labeling regulations until July 1, 2011.
SB 1198
Page 2
4)Establishes that CEC television energy efficiency labeling
regulations will not take effect on July 1, 2011 if the FTC
has issued a national television labeling regulation.
5)Establishes that if on July 1, 2011 FTC has not issued a
national television labeling regulation, the CEC television
energy efficiency labeling regulations may be adopted and
enforced only until the FTC has issued a national television
labeling regulation.
FISCAL EFFECT : According to the Senate Appropriations
Committee, there are minor costs to the Energy Resources Program
Account associated with the implementation of the CEC television
energy efficiency labeling regulations.
COMMENTS :
1)Background. The Warren-Alquist State Energy Resources
Conservation Act establishes that CEC adopt regulations
describing the standards for minimum levels of efficiency for
appliances that use a significant amount of energy or water.
These regulations include standards for both
federally-regulated appliances and non-federally-regulated
residential and commercial appliances including water heaters,
clothes washers, dishwashers, traffic signals, lighting, and
heat and air conditioning systems to be sold in California.
Regulations adopted by CEC in this manner aim to achieve
significant energy savings state-wide that are feasible,
attainable, and do not result in added costs to the consumer
for the estimated lifetime of the regulated appliance.
On November 18, 2009, CEC adopted television energy efficiency
standards for new televisions offered for sale in California
beginning in 2011. According to the CEC, televisions
represent approximately 10% of a home's electricity use. The
regulations would only apply to televisions sold in California
after January 1, 2011 and would not apply to existing
televisions. The phase of regulations beginning in 2011 would
reduce television energy consumption by approximately a third,
followed by a second phase of regulations beginning in 2013
would reduce television energy use by approximately half. The
new regulations involve three changes to the current
television standards enforced by the CEC that were adopted in
2006. First, while a television is turned off, it will be
required to use a maximum of 1 watt compared to the previous 3
SB 1198
Page 3
watts maximum. Second, televisions would require a power
usage efficiency standard while the television is turned on.
Third, televisions using at least 100 watts of power will have
the added requirement of meeting a minimum 0.9 power factor
standard. These new standards will be the first time that
"on" mode television energy efficiency is regulated.
Labeling, or "marking of applicances," is proposed by the CEC
to accompany televisions sold in California in accordance with
their efficiencyy regulations. The labels must be clearly and
legibly displayed and must describe the television's "on" mode
power consumption in watts; the rate at which they consume
energy. These labels must accompany the television to be sold
in any venue including websites, brochures, and retail venues
within California. The labels are not required on televisions
that are manufactured in California to be sold out of state.
The CEC labeling requirements were developed and adopted
alongside the television energy efficiency standards.
2)FTC television energy standards and labeling. The Energy
Independence and Security Act of 2007 established that FTC had
the authority to require energy labeling rules for certain
consumer electronics, including televisions. These FTC labels
must include EnergyGuide information including the estimated
annual operating energy cost that has been determined by DOE.
These labels are bright yellow and describe key aspects of an
appliances function as well as energy-related information
including an estimate of yearly electrical use in kilowatt
hours (kwh) and an estimated yearly operating cost in dollars.
This dollar amount is an approximation due to the varying
rates of electricity across the nation as well as an
assumption of the amount of use of the appliance. The
estimate is based upon a flat electrical cost rate of eleven
cents per kwh, and a usage rate of five hours per day and 19
hours per day in "off" mode (Figure 1). The EnergyGuide label
may contain the Energy Star logo if the appliance meets the
Energy Star standards. However, the presence of an
EnergyGuide label does not automatically imply that the
appliance has the Energy Star rating. Televisions currently
do not have EnergyGuide labels, however the FTC is currently
proposing to require them for televisions so that consumers
have more information regarding their energy use. After
reviewing public comments on the proposal, the FTC determined
that EnergyGuide labels should be required for televisions.
SB 1198
Page 4
Figure 1.
Although the EnergyGuide label provides a dollar amount, the
amount is an estimate and customers may adjust this value for
themselves based upon their electricity rates and the
frequency of appliance usage in order to get a more accurate
annual dollar energy value. The proposed CEC television
energy label describes the energy use of the appliance in the
form of watts, which also requires the customer to calculate
for themselves the annual electrical cost of the appliance.
According to current state law, the CEC is required to
prescribe measures such as energy consumption labeling not
preempted by federal labeling law. As described above, the
FTC has not yet developed and implemented its national
television labeling standard, so the proposed CEC label
regulation would not be preempted by the FTC label until the
FTC officially implements their standard national television
label.
REGISTERED SUPPORT / OPPOSITION :
Support
Consumer Electronics Association
Consumer Electronics Retailers Coalition
Custom Electronic Design & Installation Association
Mitsubishi Digital Electric America
Plasma Display Coalition
Sharp Electronics Corp.
Opposition
California Energy Commission
Analysis Prepared by : Jessica Westbrook / NAT. RES. / (916)
319-2092