Under the order, the California Air Resources Board will be required to create regulations that will help the state meet a goal of generating 33 percent of its electricity from renewable sources by 2020.
"With this investment in renewable energy projects, California has a bright energy future ahead that will help us fight climate change while driving our states green economy," said Schwarzenegger.
The governor's order mirrors legislation passed in the state assembly that lays out a similar renewable energy goal. However, Schwarzenegger's policy would allow the state to maintain flexibility in using energy generate outside of California. He also maintained that the assembly bill was too complex.
In his announcement, Schwarzenegger noted that while in office he has implemented a number of other policies aimed at reducing greenhouse gases and boosting wind, solar power and other renewable resources.