California Energy Commission Rule to Impact HDTV Industry

19.11.2009

The mandatory Tier 1 CEC spec for 2011 says a 32-inch HDTV's maximum power consumption must be no more than 116W for a 32-inch model; the Tier 2 spec for 2013 drops that to 75W--higher than the Energy Star 5.0 spec, which will be introduced six months earlier. For a 50-inch HDTV, the Tier 1 CEC spec will require the maximum power consumption to be at 245W; the Tier 2 CEC spec drops that to 153W.

That California's regulations are mandatory, and not voluntary--like the Energy Star spec--appears to be the biggest distinction between the two, and appears to be the big sticking point for the industry. But California's mandate will reach much farther than the Golden State's borders.

Because the regulation will affect any retailer--physical or electronic--that sells TVs in California, the CEC's decision to impose these standards should have far-reaching impact on the HDTV market. It's conceivable that, for regulatory compliance and supply-chain efficiencies, chain and online stores will want to limit stock to models that comply with the California regulations.

While Best Buy did not directly address a question about how the California ruling could impact the products it offers, the company did say in a statement that, "...as appliance standards are considered at the federal level, we are working closely with the Department of Energy to actively look at the testing requirements and efficiency standards for televisions to minimize the impact to our supply chain that a state by state regulatory approach may have." The implication there is that California's state-based regulation will indeed impact how the company does business, and what products the company offers.