Job Creator Fostering Technological Innovation Wins OK from Assembly Fiscal Committee

A California Chamber of Commerce-supported job creator bill that encourages technological innovation is awaiting action by the Assembly after passing that house’s fiscal committee last week with bipartisan support.

AB 1195 (O’Donnell; D-Long Beach) supports the development of new technology by requiring the California Air Resources Board (CARB) to provide a credit for innovative production or transportation of crude oil as part of the Low Carbon Fuel Standard program in California.

Encouraging the development of new technology to meet California’s ambitious climate change goals will create jobs.

Ambitious Goal

California has the most ambitious and aggressive greenhouse gas (GHG) emission reduction goals in the world. In 2016, California adopted SB 32, which mandated a 40% reduction in GHGs below 1990 levels by 2030. In 2017, a well-designed cap-and-trade program was adopted as the most efficient and cost-effective way to accomplish that goal.

California adopted these goals and programs not because they alone will have a major impact on overall emissions reductions—after all, California accounts for only 1% of global GHG emissions. Rather, the main reason for advancing these goals is to demonstrate how a major, complex economy can address a difficult and expensive public policy challenge.

By taking the leadership and showing how to accomplish these goals at the least economic expense and societal disruption, California can show the way for the rest of the world.

Encouraging Innovation

As a means to accomplish the state’s emission reduction goals, AB 1195 seeks to encourage the development of technology that will help reduce emissions associated with crude oil production and transportation.

The bill allows oil producers to claim credit under the Low Carbon Fuel Standard for renewable natural and biogas, which can contribute to a decrease of GHG emissions.

The bill also allows credit for innovative technologies such as carbon capture and sequestration, which is consistent with the state’s goals of pursuing carbon neutrality and allowing for a flexible approach to reducing GHG emissions that protects jobs and the economy.

Spurring technological advancement in the private sector will not only create jobs and protect existing ones, it will encourage early adoption of GHG-reducing technology, helping California achieve GHG reductions faster.

AB 1195 passed the Assembly Appropriations Committee on May 15, 16-0.

To view a list of 2019 Job Creator bills, visit


Staff Contact: Leah Silverthorn

The California Chamber of Commerce is the largest, broad-based business advocate to government in California, working at the state and federal levels to influence government actions affecting all California business. As a not-for-profit, we leverage our front-line knowledge of laws and regulations to provide affordable and easy-to-use compliance products and services.