POLL: 57 Percent Of Californians Oppose Proposal To Ban Big Screen HDTVs

Small Businesses Across California Speak Out Against Proposed Regulation That Would Destroy 4,600 Jobs; Cost California $50 Million A Year

September 15, 2009

Today, during a series of events held at local HDTV retail stores in Los Angeles, Fresno and San Francisco, Californians for Smart Energy released the findings of a new statewide poll that found that 57 percent of Californian's oppose the California Energy Commission's (CEC's) proposal to regulate television electricity usage. Conducted by Zogby International (see memo at: http://casmartenergy.com/in-the-news.php), other key findings included: • 61 percent believe there are too many regulations in California as it is. • 59 percent believe that such a matter should be the consumer's choice - not the government's decision. • 58 percent believe that the CEC's proposed regulation is another example of the costly and unnecessary rules the state continues to force on small business owners. • 55 percent believe that Governor Arnold Schwarzenegger should stop the CEC from adopting this regulation. If adopted, high-definition television manufacturers would be required to meet an artificial energy use limit in order to sell their HDTVs in California. The CEC's regulation would effectively ban the sale of 25 percent of current big screen HDTV models and 100 percent of plasma HDTVs larger than 60 inches diagonal in California. According to a Resolution Economics, LLC study, the CEC's regulation would cost California $50 million a year in lost tax revenues and destroy 4,600 jobs. Small business owners across the state voiced their concern over the impacts of these regulations. FRESNO: "I hope the California Energy Commission hears the findings of this poll loud and clear. With nearly 15 percent unemployment in Fresno, why is the California Energy Commission proposing regulations that would further strain small businesses and working families? I think state government should be concerned with one thing: getting our economy back on track." - Jim Richards, Futurehome Systems & Design IRVINE: "This regulation is absurd. The CEC cannot regulate the entire market, so savvy consumers are simply going to buy the TV models they want online and across-state-lines - sending jobs and tax revenues with it. I wish California would help remove barriers to business and economic growth, not keep adding more. What's more, this regulation is a waste of state and taxpayer money because of programs like the fed's ENERGY STAR program, which is already in place and working." - Jim Kingsley, CEO of Kingsley Audio Video LOS ANGELES: "This regulation is a bad idea in a good economy and a horrible idea in a recession. With Los Angeles facing nearly 13 percent unemployment - why is the state pursuing this costly and harmful regulation? Thankfully Assembly Members Mary Hayashi, Felipe Fuentes and Alex Padilla have announced their plans to hold a legislative hearing this month. We urge the California Energy Commission to stop all activity until the legislature has had a chance to examine the full economic impacts." - Steve Caldero, Ken Crane Big Screen Headquarters MONTEREY: "It's ironic that the California Energy Commission is targeting one of the few bright spots in the economy. Televisions remain an affordable and convenient entertainment option for cash-strapped families. In fact, retail analysts recently found that the recession is forcing many families to stay home more often, which means utilizing their home theater more. " - David Hearn, Carvid Systems Inc. SACRAMENTO: "Many businesses are already hanging on by a thread. I'm deeply concerned that the CEC's regulation would force many small business owners to lay off workers, close their doors or leave the state altogether. Why is the California Energy Commission proposing such a harmful regulation, especially when the state is suffering the worst unemployment rates since World War II?" - Charlie Martinez, Elk Grove Home Theater SAN DIEGO: "My guess is that when most Californians catch wind of this, they'll shrug their shoulders and think, ‘it can't happen.' As the owner of a small home theatre business, my reaction is, ‘I can't afford for it to happen.' What we need during these tough economic times is for the state to remove road blocks for small businesses like mine, not add more." - Shawn Worst, Evolution Home Theatre, Inc. SAN FRANCISCO: "With San Francisco facing nearly 10 percent unemployment, why is the California Energy Commission proposing a regulation that will ultimately drive jobs and tax revenues online or into nearby states like Oregon and Nevada? We need the state to help promote economic growth, not implement harmful and unnecessary regulations that only further hurt small businesses and hard-working families." - Barry O'Brian, Performance Audio "This poll confirms what many of us already knew ­ a majority of Californians recognize that the California Energy Commission's HDTV regulation is harmful to (an already devastated segment of) small business, and unnecessary. Technological advancements and consumer demand ­ not regulations ­ have all led to greener televisions. In fact, it¹s estimated that 70 percent of HDTV¹s will have green features by 2012. Promotion of market-based programs like ENERGY STAR would achieve energy efficiency without destroying jobs or innovation." - Paul "Gunther" Greiner, Paul Fitzpatrick Company SANTA BARBARA: "I am concerned that this regulation will delay or ban new technologies - like 3D-HDTV or Internet-enabled TVs - if they can't comply with the California Energy Commission's regulations. The television industry is constantly innovating and releasing more energy efficient models based on new technologies and consumer demand - not regulations. The state of California should be utilizing market-based solutions, like ENERGY STAR, which won't stifle innovation or further hurt the economy." - William Janka, Mission Audio Video SANTA ROSA: "High-performance televisions are the product that attracts customers to my business, but this regulation would effectively remove 25 percent of LCD and plasma big screen televisions and all plasma televisions over 60 inches off the shelves. Restricting the televisions available to be sold in California will not only affect how many customers we can attract, but it will also decrease our sales, installation jobs and consumer choice. Our sales are already down significantly as a result of the economic recession. It's likely we could lose as much as 15-20 percent of our sales as a result of the CEC regulation, forcing us to cut 15-20 percent of our labor." - Don Mueller, North Bay AVS Design "The California Energy Commission should instead focus on creating incentives for HDTV manufacturers to develop more energy-efficient HDTVs, regardless of size, and require manufactures to properly calibrate HDTVs using Imaging Science Foundation (ISF) and THX procedures to reduce energy draw. The current practice is for HDTVs to operate 'wide-open" as wasteful energy light engines right our of the box on retail showroom floors and in consumer homes. Proper calibration would result in significantly improved picture quality and significant energy savings during operation. Also, The CEC should require HDTV manufactures to meet RoHS (Restriction of Hazardous Substances) directives, which would ban the manufacture of electrical and electronic equipment containing more than agreed upon levels of Lead, Mercury, Cadmium, Hexavalent Chromium, Polybrominated Biphenyl and Polybrominated Diphenyl Ether. Wise technical approaches to achieve significant energy efficiencies are available and being developed to produce environmentally responsible HDTVs without resorting to banning large screen sizes." - Gary Reber, Editor-In-Chief & Publisher, Widescreen Review Magazine and Webzine (www.widescreenreview.com) The CEC is expected to act on the proposed regulation sometime this fall. MORE ON THE POLL: Zogby International was commissioned by the Consumer Electronics Association to conduct an online survey of 800 voters in California. A sampling of Zogby International's online panel, which is representative of the adult population of the U.S., was invited to participate and asked approximately 20 questions from September 8, 2009 to September 9, 2009. Slight weights were added to party, age, race, gender, education, ideology to more accurately reflect the population. The margin of error is +/- 3.5 percentage points. MORE ON CALIFORNIANS FOR SMART ENERGY: Comprised of consumers, small businesses, trade groups and associations, Californians for Smart Energy (www.CASmartEnergy.com) is a growing coalition dedicated to having a real discussion about meeting California's energy needs - without job-killing regulations that are harmful to California's economy. Please also follow us on Twitter (www.twitter.com/casmartenergy) and Facebook (www.facebook.com/pages/Californians-for-Smart-Energy/118950385329) and YouTube (www.youtube.com/casmartenergy).

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