Schwarzenegger Signs Global Warming Bill

The Dalai Lama, center, poses with California Gov. Arnold Schwarzenegger, left, and Chief of Protocol for California, Charlotte Schultz, in Long Beach, Calif., Tuesday, Sept. 26, 2006. The Dalai Lama is to speak at California first lady Maria Shriver's annual women's conference, later on Tuesday. The white scarves being worn by Schwarzenegger and Schultz are called khatas, which are prayer scarves. (AP Photo/Kevork Djansezian, Pool) (Kevork Djansezian - AP)

It imposes a first-in-the-nation emissions cap on utilities, refineries and manufacturing plants in a bid to curb the gases that scientists blame for warming the Earth. Two years ago, a state board adopted tight regulations on automobile tailpipe emissions, an initiative that is being challenged in federal court by automakers.

This week, Schwarzenegger also was expected to sign a second Democrat-sponsored global warming bill with consequences beyond the state's borders. That bill would prohibit California's large utilities and corporations from entering long-term power contracts with suppliers whose electricity sources do not meet the state's greenhouse gas emission standards.

The measure by Sen. President Pro Tem Don Perata is intended to force coal plants in the western U.S. to install cleaner technologies.

California's efforts to cut greenhouse gas emissions from industry and automobiles are part of a goal to reduce the state's emissions to 1990 levels by 2020, an estimated 25 percent reduction. California is the world's 12th largest producer of greenhouse gases such as carbon dioxide, methane and nitrous oxide that are trapping heat in the Earth's atmosphere.

Schwarzenegger issued an executive order in 2005 calling for an even more ambitious reduction _ cutting the levels of greenhouse gases to 80 percent below 1990 levels by 2050.

In an interview Tuesday with The Associated Press, Schwarzenegger described the emissions-cap bill as one step in a long-term strategy by the nation's most populous state to combat global climate change. He said the state should further reduce industrial emissions and adopt initiatives such as placing greater emphasis on renewable energy and hydrogen-fueled cars.

The industrial emissions cap has been praised by environmentalists as a step toward fighting global climate change, but business leaders have warned that it will increase their costs and force them to scale back their California operations.

Schwarzenegger said it is possible to protect the environment as well as the state's economy. He expects the law will lead to a new business sector in California devoted to developing the technologies industries can use to meet the tougher emission requirements.

"We can save our planet and boost our economy at the same time," the governor said.