SCHWARZENEGGER INHERITS FIGHTS BETWEEN CALIFORNIA AND WHITE HOUSE

Gov.-elect Arnold Schwarzenegger is arriving in Sacramento
with hopes of getting along better with one of California's recent
enemies: the Bush administration.

California has staged epic battles with the federal
government on issues including environmental protection, energy,
health care, consumer protections, immigration and medical marijuana.

Schwarzenegger has promised to continue some of these efforts
- - an ongoing lawsuit, for example, that would allow California to set
tougher anti-smog standards for carbon dioxide emissions than the
federal government requires.

But during his first news conference as governor-elect, the
moderate Republican indicated he's willing to reach some compromises
with the more conservative President Bush, who plans to campaign with
Schwarzenegger in California next week.

"He promised me he would do everything possible to help
California, and so I'm looking forward to working with him and asking
him for a lot, a lot of favors," Schwarzenegger said.

For his part, Bush said he's "absolutely" ready to work with
the new governor - a striking turnaround from the polarized
relationship between Bush and ousted Gov. Gray Davis, who mostly
failed in his attempts to get the federal government to reimburse
California for everything from the costs of imprisoning illegal
immigrants to increased homeland security.

The lawsuits reflect a desire among California's Democratic
leaders for the state to have its own standards, which in many cases
are more environmentally friendly, socially liberal and protective of
consumers than Bush administration regulations.

A hallmark of our state has been its willingness to say to
the Bush administration, 'What you're doing is bad for our state, and
we're going to take a different direction,"' said Carl Zichella,
regional staff director for Sierra Club in Sacramento. "But I'm not
sure how a Republican governor can tell Republican presidential
candidate who is fighting for his life that he can't have what he
wants in California."

The point-man for the legal battles has been state Attorney
General Bill Lockyer, who on Thursday sent Schwarzenegger a
confidential memo outlining all the state's litigation, including
dozens of lawsuits against the federal government.

"My view is that the Bush administration is the most
aggressively big government of any administration in national history,
and so we have those lawsuits just because they're rewriting the
doctrine of federalism," said Lockyer, who considers Schwarzenegger to
be a friend.

While most of the lawsuits are over policies, there's real
money at stake as well. Still pending is the state's demand that the
Federal Energy Regulatory Commission order energy companies to refund
$9 billion in windfall profits made in California.

Schwarzenegger, who was criticized during the campaign for
joining a closed-door meeting in Beverly Hills with Enron Chairman
Kenneth Lay during the energy crisis, hasn't said whether he'll keep
fighting to get the $9 billion refunded to ratepayers.

Consumer and environmental advocates are worried
Schwarzenegger will declare surrender.

"I just hope that we'll be able to hold the line, and
continue to be the bellwether that we have been in the past on so many
issues," said Betsy Imholz is Director of the West Coast Regional
Office of Consumers Union.

The environmental conflicts include banning offshore
drilling, protecting endangered species and limiting auto and power
plant emissions.

"There are many examples of the administration siding with
polluters rather than clean air," said Tim Carmichael, president of
the Coalition for Clean Air in Sacramento. "Schwarzenegger comes in as
new blood with a positive attitude, and I believe good intentions with
regard to the environment and public health. Perhaps he'll have better
communication with the feds, and resolve some of the problems."

Although he hasn't made detailed policy statements on many
issues, Schwarzenegger promised while campaigning to fight to protect
California's higher standards when it comes to carbon dioxide
emissions. "California's landmark legislation to cut greenhouse gases
is now law, and I will work to implement it and to win the expected
challenges in court along the way," he said.

One of the touchiest battles may involve medical marijuana.
Schwarzenegger has admitted using marijuana and other "soft" drugs in
the past, and was asked while campaigning if he supports drug
legalization. Schwarzenegger called it "a bad idea" but said "I would
legalize medical (marijuana)."

Smoking marijuana is a federal crime, but in California
voters approved a law in 1996 allowing sick and dying people to use
the drug. Since then, the Drug Enforcement Agency has raided growers
and distributors of medical marijuana, despite protests from local law
enforcement.

"The governor can't control the feds, but he has a bully
pulpit and can raise his voice," said Bruce Mirken, spokesman for the
Marijuana Policy Project in Washington D.C. "Perhaps a Republican like
Schwarzenegger can have some influence with the White House."