California's ban on plasma-screen televisions to reduce energy consumption could cost as much as $50 million per year in sales taxes because consumers are free to buy the sets online or in other states. "At a time when the state of California is facing its worst money crisis in history, this is going to be disastrous," said Jennifer Bemisderfer, a spokesperson for the Consumer Electronics Association, which lobbied against the ban.

The California Energy Commission's ban on plasma sets 58 inches or smaller is the first in the nation. It came after two years of debate on skyrocketing home energy costs and takes effect in 2011.

Billions in Savings

Commission Chairman Karen Douglas said the new regulations will save $8.1 billion in energy costs.

"The real winners of these new TV energy efficiencies are California consumers, who will be saving billions of dollars and conserving energy while preserving their choice to buy any size or type of TV," Douglas said. "Californians buy four million televisions each year and they deserve the most energy-efficient models available."

The Virginia-based Consumer Electronics Association, which represents 2,000 manufacturers, retailers and suppliers, estimated the $50 million tax loss. It also warned that the ban could kill 4,000 retail jobs in California.

The nation's most populous state, California represents one quarter of the market for plasma TVs, Bemisderfer said. "The [CEC] considers TVs low-hanging fruit," she added. "They have estimated the amount of TVs used in the home at 10 percent. Our estimate is that about half that. And in the last two years alone, manufacturers have improved energy efficiency by 41 percent."

Widespread Opposition

Last month, a manufacturer's group, the Plasma Display Coalition, accused the commission of a "flagrant misinformation campaign" about plasma energy usage.

A Zogby International poll commissioned by the CEA found that 57 percent of California residents opposed the ban.

Bemisderfer warned that the ban could also be harmful to industry innovation. "The fact is that energy-use mandates of this sort do not make sense," she says. "We are seeing much newer technology emerging. We need the ability to bring in that new technology and let the market decide."

Source: California'...