Entering his second term, California Gov. Arnold Schwarzenegger announced an ambitious agenda in his State of the State address Tuesday.

Among the items the Governator introduced is a mandate to reduce greenhouse gas emission from motor vehicles, making California the first state in the nation to adopt such strict emissions laws. Schwarzenegger issued an executive order to slash the carbon content of all passenger vehicle fuels sold in California by 10 percent by the year 2020. While details of the motion are still in the works, administration officials said the new standard will apply to all gasoline refiners.

“Our cars have been running on dirty fuel for too long,” Schwarzenegger said in the speech. “California has the muscle to bring about such change. I say use it.”

There are several ways the state can achieve this reduction. One is increasing the amount of ethanol in gasoline. The current percentage sits at 6 percent — a 4 percent increase would be able to meet the new state standard.

Another debated procedure is producing more hydrogen for fuel-cell vehicles and natural gas for natural-gas vehicles. Administrators said that the plan will strive to leave rules open enough for oil businesses to still find the most cost effective solution.

The new plan pleased environmentalists, who will push for more states and Congress to enact similar rules. Previous environmental rules spearheaded by California have made it to the national level.

But Economics Prof. Frank Wolak cautioned that their prospects may not be as rosy as they seem. In a recent article in the San Jose Mercury News, Wolak worried about the negative repercussions the plan will bring. Among them are hiked gasoline prices and an increase in global warming emissions in the Midwest — the lead region producing corn, the ingredient used to extract ethanol.

“This is the classic politician’s free lunch,” Wolak told the Mercury News. “It looks environmentally conscious, but it may not accomplish the goals.”