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California will begin reviewing potentially harmful chemicals used to make consumer products under a bill signed Monday by Gov. Arnold Schwarzenegger. The law could lead to an outright ban of chemicals in household items that are determined to have negative health effects.

Schwarzenegger said consumers are alarmed about the health and environmental hazards many chemicals pose reports the Associated Press.

He said the bill by Democratic Assemblyman Mike Feuer of Los Angeles is a departure from the piecemeal approach often used by lawmakers to restrict or ban individual compounds.

Later in the day, the governor announced he had vetoed another bill that would have banned a potentially harmful chemical used in food packaging. The compound, known as PFOA, is used in fast-food wrappers, pizza boxes and beverage containers.

Schwarzenegger says PFOA should be reviewed through the new state program. The bill’s sponsor, Democratic Sen. Ellen Corbett of San Leandro, had argued the state should act more immediately because of its wide exposure.

The governor signed a companion bill by Sen. Joe Simitian that sets up an online chemical registry to provide information for consumers, businesses and workers.