|[August 21, 2012]
CEA Statement on California State Senate Decision to Strike Down AB 1850
ARLINGTON, Va. --(Business Wire)--
Today the Consumer Electronics Association (News - Alert) (CEA)® releases
the following statement, attributable to CEA Vice President of
Technology Policy Doug Johnson, in response to the recent California
State Senate appropriations committee decision to strike down AB 1850,
legislation that would have updated and improved the regulatory
framework supporting energy efficiency with respect to the California
Energy Commission (CEC) and its focus on energy efficiency through
appliance efficiency standards:
"California has a broken energy efficiency regulatory process, resulting
in phantom energy savings in support of the state's goals for reducing
greenhouse gas emissions as outlined in AB 32, California's landmark
Global Warming Solutions Act of 2006.
"AB 1850 would have helped to implement common-sense measures in
California's regulatory process, including checks and balances,
flexibility and much-needed consideration of economic impacts for
today's competitive marketplace. AB 1850 would have also helped ensure
the state's energy efficiency regulations were making genuine and
significant contributions to AB 32.
"Good data leads to good public policy. Unfortunately, in three separate
rulemakings during the past several years, we have seen a California
agency use old data to justify new regulations and claim energy savings
when little or none actually existed. This is a problem not only for the
California economy, which must bear the cost of unnecessary regulation,
but also for the state's energy efficiency and emissions reduction
"Reforms such as those outlined in AB 1850 are critical to ensuring a
fair, balanced and rigorous approach on the CEC's desire to regulate
computers, servers, game consoles, imaging equipment and other high tech
Introduced by Assembly Majority Leader Charles Calderon (D-Whittier), AB
1850 originally had nine common-sense provisions:
Protection of economic growth and innovation:
AB 1850 required an Energy Commission finding that proposed
regulations do not harm employment, competition, consumer choice, or
product innovation and utility.
Protection for California consumers and small
businesses: AB 1850 required an Energy Commission finding that
proposed standards do not significantly affect retail prices and do
not burden small- and medium-sized businesses, competition, and
interstate and intrastate commerce.
- Real-world economic factors: AB 1850
required that discount rates, payback calculations, and life-cycle
cost estimates use interest rates that are applicable to consumer
financing and the average life of the product before replacement.
Quality of data used to justify regulations:
AB 1850 required the Energy Commission to use the most current data
possible and, wherever feasible, use data not older than one year
prior to the commencement of a formal rulemaking.
Policy choice flexibility: AB 1850
authorized Energy Commission standards for minimum levels of operating
efficiency but only where less restrictive, non-regulatory or
regulatory alternatives are not feasible.
Reduction of compliance burdens: AB 1850
required Energy Commission policy outcomes that are designed to
minimize regulatory compliance burdens.
Elimination of regulations no longer needed:
AB 1850 explicitly allowed for the elimination of Energy Commission
regulations that were no longer necessary.
Recognition of the energy-saving attributes of
products: AB 1850 required Energy Commission analysis that
accounts for the energy-saving attributes of electronics used for
activities such as Internet commerce, online meetings, telework, and
Objectivity of retained consultants: AB
1850 required the Energy Commission to determine the expertise,
objectivity and independence of retained consultants.
Opposition to AB 1850 was led by the CEC, National Resources Defense
Council (NRDC) and Pacific Gas and Electric Company (PG&E (News - Alert)). As the bill
moved through the legislative process in California, key provisions in
the original bill were struck. The remaining regulatory reform
provisions in the final version of AB 1850 - requiring the state to use
current data and eliminating outdated and ineffective regulations - were
ultimately eliminated by State Senator Christine Kehoe (D-San Diego).
For more information, please visit www.CE.org/California.
The Consumer Electronics Association (CEA) is the preeminent trade
association promoting growth in the $206 billion U.S. consumer
electronics industry. More than 2,000 companies enjoy the benefits of
CEA membership, including legislative advocacy, market research,
technical training and education, industry promotion, standards
development and the fostering of business and strategic
relationships. CEA also owns and produces the International CES (News - Alert) - The
Global Stage for Innovation. All profits from CES are reinvested into
CEA's industry services. Find CEA online at www.CE.org,
and through social media: https://www.facebook.com/#!/CEAfeed
CEA Industry Forum
October 14-17, 2012, San Francisco, CA (News - Alert)
CEA Research Summit at Industry Forum
October 17, 2012,
San Francisco, CA
CEO Summit and Board Retreat
October 17-19, 2012, Sonoma,
CES New York Press Preview featuring CES Unveiled NEW YORK
12, 2012, New York, NY
CES Unveiled LONDON
November 15, 2012, London, UK
2013 International CES
January 8-11, 2013, Las Vegas, NV
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