California made a bold move to curb global warming by passing on Thursday (August 31) the United States' first bill to cap man-made greenhouse gas emissions which state leaders hope will be emulated across the country. Gov. Arnold Schwarzenegger, frustrated by lack of action by fellow Republican President George W. Bush on reducing heat-trapping gases, teamed up with the state's Democratic majority on the landmark bill and will sign it next month. The bill cleared its last legislative hurdle in the State Assembly in a 46-31 vote, with opposition from Schwarzenegger's own Republican Party. The Global Warming Solutions Act of 2006 puts California at the forefront of the fight against climate change along with the European Union, and increases pressure on Washington to place mandatory caps rather than the voluntary ones favoured by Bush. Hamlet Paoletti, a senior associate with the environmental group NRDC, said it was a major step forward for both Schwarzenegger and California. "It doesn't surprise me for two reasons," explained Paoletti. One, every single poll shows that Californians are very concerned about the environment and want something done about it. This measure is good for business, once again California puts itself into a position to develop a whole new industry." He added that California's breakthrough on global warming could have a "huge" impact on policy in Washington. "The Bush Administration's policies have always been the one of letting the market decide, the industries regulate themselves. Obviously, it is not working and something needs to be done. Some rules and regulations need to be put in place and that is what California is doing in setting the parameters," said Paoletti. California aims to reduce its emissions to 1990 levels by 2020, a cut of around 25 percent. The biggest sources of heat-trapping gases, like power plants and cement makers, will be required to report their emissions. Bush pulled the United States out of the 160-nation Kyoto Protocol in 2001 on the grounds that the mandatory reductions in greenhouse gases would hurt the economy and wrongly excluded developing nations. Assembly Speaker and co-sponsor Fabian Nunez appealed to California's traditional leadership on the environment and asked the legislature to take "an opportunity to be bold." Republicans argued the bill was "not fully cooked" and echoed concerns in the business community that it would drive away companies to less regulated places like China. While Schwarzenegger will use his good record on the environment in his November re-election bid, Nunez has said the Democrats hope to roll it out to other states and make it a hot election issue for the 2008 presidential race. Californians, who pride themselves on being progressive on environmental issues, are hopeful. "I'm just for anything that is hopefully, one day going to help the environment, said Katie Bartlett, of Los Angeles. "I mean, it is totally disgusting today driving around L.A., there is brown smog, everywhere. So, something has to change." Others like Rachel Clerc, are giving Schwarzenegger, who's running for re-election in November, the benefit of the doubt. "I don't necessarily distrust the package because just because Schwarzenegger put forth the package. But, I would like to take a look at it before I make broad stroke judgements on it," said Clerc. Although California is a pace-setter on the environment, it is also the world's 12th-largest producer of greenhouse gases like carbon dioxide and faces potentially serious concerns over its drinking water, coastline, agriculture and air quality because of the rise in temperatures.