[Mb-civic] California sets national energy efficiency standards

[ean at sbcglobal.net]

California Rules Raise Appliance Efficiency

(CBS MarketWatch, Dec. 31) - Manufacturers take note: California 
environmental initiatives, like the pioneering effort that led to the
nationwide use of unleaded gasoline, may soon extend to home electronics
and appliances.

 The state is taking a hard-line approach to curbing electricity 
demand. Under rules that start taking effect in 2006, Californians will
draw less power off the grid when they plug in new, more efficient
refrigerators, air conditioners -- even answering machines.

 The new standards will require companies from Hewlett Packard and 
Black & Decker to Carrier and Philips Electronics to redesign a host of
product components sold in the state, according to people familiar with
the regulations.

 The question now is whether the companies will turn out a separate 
line of products minted only for the California market -- as they long did
with autos outfitted with cleaner-burning catalytic converters -- or
simply adopt California's standards for all products sold nationwide,
which has since largely happened with cars.

 In a unanimous vote in early December, the California Energy 
Commission approved efficiency requirements for scores of commercial 
and
domestic products left unregulated by the federal government, including
pool pumps, space heaters, soda vending machines, walk-in freezers, ice
makers, air conditioners and lighting.

 The standard that state officials expect to boost energy efficiency the
most requires two-speed pumps for swimming pools. California counts 
more
than a million residential pools within its borders.

 Setting state product standards that surpass federal requirements has
proven a thorny issue in Washington. But if history is any guide,
California's latest energy efficiency campaign could well re-shape markets
and policies far beyond the Golden State.

 Along with stricter vehicle emissions laws aimed at cutting the smog
choking its cities, California back in the 1970s was the first state to
require appliances meet minimum energy savings standards, a move that 
led
to similar national standards a decade later.

 "California is leading the way," said Noah Horowitz, a senior 
scientist at the Natural Resources Defense Council, a nonprofit group that
helped advance the regulations. "We're hopeful that a new standard is
being set."

 California's 34 million residents -- about 10 percent of the domestic
appliance market -- and their purchasing power ensure manufacturers 
cannot
ignore the state. They already own more than 100 million audio, video, and
television set-top box products. "Manufacturers pay attention to
California regulations," said Rob Schlichting, a spokesman for the energy
commission.

 The state has long championed energy efficiency to curb toxic 
emissions. Proponents argue these stricter standards will also defer the
need for two to three large new power plants.

 Several East Coast legislatures have proven sympathetic to 
California's approach. Maryland and Connecticut approved new efficiency
standards for a smaller group of products, while New Jersey is expected to
approve similar legislation next month.

 "In general, there does tend to be a national impact from these kinds of
things," Bill Prindle, the deputy director for the American Council for an
Energy Efficient Economy, said.

The plugged in household

 The new rules also target "energy vampires" -- those plugged-in 
appliances kept on permanent standby. They are easy to spot because 
they are usually attached to a little black box that converts 
alternating current from a wall outlet into to direct current.

 A typical house today has 10 to 20 of these converters, found on cell
phone chargers, laptops, computers, cordless vacuum cleaners, printers,
scanners and DVD players. As long as they are plugged in, they're drawing
power, costing homeowners on average about $75 a year.

 In some cases, California's new standards will cut by half the amount of
energy these devices soak up. "We're making them more efficient in that
stand-by mode," Schlichting said.

 Companies like Apple Computer, Sony, Dell Inc., and Toshiba are among 
the
computer and electronics manufacturers whose lines will need to comply
with the new standards, Horowitz said.

 This will require these companies to seek out new parts that meet the
standards or have their suppliers change the specifications of current
models. The improved efficiency will, in many cases, stem from new
circuitry, electronic chips, or materials, Prindle said.

Costs and benefits

 The new regulations, to be phased in by product type, will save 
consumers an estimated $2 billion by 2020, though the upfront cost of
buying more efficient appliances could rise 5 to 15 percent. A study by
the commission indicated net savings to California businesses over 15
years at almost $1.6 billion.

 But for companies that sell low-end, rechargeable consumer products such
as Bissell, Hoover, Braun, and Black & Decker, the new standards could
slap an additional $3 on the price of products that retail for less than
$20, said Joseph McGuire, president of the Association of Home 
Appliance
Manufacturers. "This is a major impact on the product," McGuire said.
These products include electric shavers and cordless vacuum cleaners.

 California regulators dispute this, saying the standards will likely
raise the price of these products by only 30 to 50 cents. The association
is working with the Environmental Protect Agency to come up with an
alternative standard before 2006 that state regulators have said they will
consider.


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