California aims to cut its greenhouse gas emissions by a quarter over the next 14 years in a landmark deal struck by the Republican governor, Arnold Schwarzenegger, and the state's Democrats.
The Democratic controlled senate in California is expected to approve the bill and Gov. Schwarzenegger will ratify it.
California has taken the lead to become the first US state to impose a limit on all greenhouse gas emissions, including those from industrial plants, under a landmark deal reached on Wednesday.
California is the most populous state in the United States.
This a victory for Gov. Schwarzenegger and environmentalists are elated by California's bold move. The US Federal Government has not taken action to curb green houses as called for by the Kyoto Protocol agreed by more 163 countries .