Should the govenrment California from passing its emission legislation?

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California Governor Arnold Schwarzenegger plans to sue the federal government over a California plan to reduce greenhouse gas emissions. Environmental Protection Agency chief Stephen Johnson announced the federal government's decision to refuse the state's request for a waiver that would have allowed it to cut emission faster than a new federal plan the president signed into law. This bill sets a fuel economy standard for the entire country. The national bill raises fuel efficiency to 40% by 2020, an average of 35 miles per gallon. California, however, wishes to cut emissions by 30% by 2016, raising fuel efficiency standards in the states to 43.7 miles per gallon for passenger cars and some SUVs and trucks, while larger vehicles would need to reach 26.9 MPG by that year. 16 states have either adopted California's standards or announced plans to do so. President Bush responded by saying: "Is it more effective to let each state make a decision as to how to proceed in curbing greenhouse gases? Or is it more effective to have a national strategy?" Debating on the theory of federalism, does the national government have the right to reject the states' new plan? What do you think of Bush's statement? What is your stance on the what the government should do in terms of CO2 emissions?