SAN FRANCISCO (AP) – The Rev. Lou Sheldon wasn’t thrilled when Gov. Arnold Schwarzenegger signed legislation requiring health insurance policies to offer equal coverage to partners of gay and lesbian workers. Sheldon, a conservative activist and president of the Anaheim-based Traditional Values Coalition, grew more upset after Schwarzenegger approved legislation allowing hypodermic needles to be sold with no prescription as a way to slow the spread of AIDS.

But then, when Schwarzenegger approved a bill to expand the definition of hate crimes – which conservatives fear will lead to prosecutions of those who condemn homosexuality – Sheldon declared war.

“Gov. Arnold Schwarzenegger must not be too troubled by what he’s called ‘girlie men’ because he’s just signed a bill into law that maintains ‘sex’ in California to include drag queens, cross-dressers and transsexuals,” Sheldon announced in a written statement. “Schwarzenegger has sided with the homosexual and drag queen lobby in muddying the biological realities of male and female.”

While Schwarzenegger has billed himself a social moderate since the beginning of his improbable political career, Sheldon isn’t the only conservative activist steamed over the celebrity governor’s first-ever round of bill signings. From gay rights to AIDS prevention to the environment and gun safety, Schwarzenegger has adopted positions that are far outside of the GOP orthodoxy – and even to the left of some Democrats.

So far, Schwarzenegger has fashioned himself an environmentalist, signing tougher auto smog restrictions, creating Sierra Nevada conservancy, reducing cruise ship pollution and allowing hybrid cars to drive in coveted freeway car pool lanes. He’s approved legislation banning the sale of high-powered .50 caliber BMG rifles over the objection of the California Rifle and Pistol Association. He’s enacted the most permissive parole system in recent state history, releasing a record 48 murderers serving life sentences. And the clean needle legislation, which is being hailed by AIDS activists, was twice vetoed by his Democratic predecessor, Gray Davis.

“My administration supports this measure because it will prevent the spread of HIV, hepatitis and other blood-borne diseases among injection drug users, their sexual partners and their children,” Schwarzenegger said in a statement.

His supporters say conservatives shouldn’t be surprised by any of this – that his moderate views on social issues were well known during last year’s historic recall election and that voters chose him mostly because of his promise to restore fiscal discipline in Sacramento.

Meanwhile, analysts chalk it up to smart politics.

“The governor enjoys very high popularity and can take some risks,” said Mark Baldassare, polling director for the Public Policy Institute of California, whose latest poll shows 61 percent of Californians approve of the job Schwarzenegger is doing.

“But he is also a Republican governor who recognizes that most California voters are Democrats and independents,” Baldassare added, “and to continue to receive high approval from the public, he needs to reach out beyond the conservative roots of his party.”

To be sure, no one is going to accuse Schwarzenegger of being a latter-day Jerry Brown. He has also shot down bills raising the minimum wage and granting driver’s licenses to illegal immigrants, and has come out against a ballot initiative requiring employers to provide health coverage for uninsured workers. Those vetoes and others led Steve Maviglio, a spokesperson for Assembly Democrats, to deride Schwarzenegger as “Pete Wilson with biceps.”

But that still doesn’t placate conservative activists, many of whom gathered on the steps of the state Capitol recently to protest what they billed as Schwarzenegger’s repudiation of the conservative voters who helped sweep him into office.

“It is sad and disappointing to pro-family voters and conservatives to see how the governor has infringed on free speech, promoted drug use, expanded the transsexual agenda, undermined marriage and is paroling a record high number of murderers into our neighborhoods,” said Randy Thomasson of the Campaign for California Families.

In an interview, Chuck Michel of the California Rifle and Pistol Association called Schwarzenegger’s decision to ban BMG rifles “disturbing,” as well as his past support for the federal assault weapons ban that expired earlier this month.

“Schwarzenegger coming into office gave a lot of hope to people, because we were dealing with Gov. Davis, who was becoming more and more extreme, signing everything in sight,” Michel said. “Some of that hope was dashed.”

For his part, Sheldon reminisced fondly about Schwarzenegger’s speech at the Republican National Convention, where he thrilled delegates by thundering his commitment to the party’s conservative principles – praising Richard Nixon, slamming the United Nations and implying that only Republicans care about “terminating” terrorism.