Schwarzenegger, Ontario Premier Sign Emissions Deals

California Governor Arnold Schwarzenegger and Ontario Premier Dalton McGuinty signed agreements to cut greenhouse-gas emissions and boost stem-cell research.

McGuinty will require cars in Canada's most populous province to have 10 percent fewer emissions by 2020, equivalent to a reduction of 700,000 cars, the Premier's office said in a statement on Canada NewsWire today. McGuinty also pledged C$30 million ($27.9 million) for cancer stem-cell research.

The agreement aims to ``coordinate policies on fuel standards,'' according to the statement, which didn't say how the agreement will be enforced.

The Ontario-California accord adds to initiatives that put local governments ahead of national leaders in stemming emissions of the gases blamed for rising global temperatures. Schwarzenegger has pushed the U.S. for two years to let his state regulate carbon-dioxide emissions. California, an economy about the size of Canada's, last week asked regulators for permission to set its own environmental rules.

McGuinty and Schwarzenegger also agreed to collaborate on initiatives to increase the use of ``clean energy technologies,'' establish a North American emissions trading system, and promote energy-efficient systems in buildings. The politicians met in Toronto today.

2009 Models

Starting with 2009 models, the California governor wants to cut carbon dioxide emissions from passenger vehicles by 18 percent below current levels before 2020. With 12 percent of all new light vehicle sales in the U.S., California said it needs federal approval by Oct. 24 to give carmakers enough time to comply with that timeline.

Schwarzenegger, a Republican, and California Attorney General Jerry Brown, a Democrat and former governor, threaten to sue the federal government unless the U.S. Environmental Protection Agency grants the permission.

Eleven other states have adopted the California standard, potentially pre-empting the U.S. Congress's role in setting such a cap and forcing companies to change the way they make vehicles. A California victory might clear the way for others.

Criticism that Canadian Prime Minister Stephen Harper hasn't done enough to tackle global warming prompted him to phase out a C$300 million tax break for oil producers, such as Suncor Energy Inc., in the government's current budget. Harper also proposed extending to 2020 a 50 percent credit for projects that cut pollution, a program set to expire in 2011.

To cut pollution from cars and trucks, Canada's budget also includes a credit of up to C$2,000 for fuel-efficient vehicles and a tax of up to C$4,000 on ``gas guzzlers.'' Another C$36 million will be spent in the next two years to get older, polluting cars off the roads.