San Francisco (Platts)--30May2007

California Governor Arnold Schwarzenegger and Ontario Premier Dalton
McGuinty Wednesday signed a memorandum of understanding committing the state
and province to work together to combat climate change.   

     The two governments will explore potential linkages between regional
market-based mechanisms, promote innovative technology and energy efficiency
programs and policies, Scharzenegger said in a statement. They two met in
Toronto during Schwarzenegger's trade mission to Canada. 

     "Like California, Ontario is leading the way in recognizing that we must
take action now to fight global warming and reduce our dependence on fossil
fuels. States, provinces, regions and countries must all work together to find
solutions that both protect our environment and grow our economy at the same
time," Schwarzenegger said.

     The MOU also commits Ontario to adopt California's low-carbon fuel
standard that the state hopes will cut the carbon content of all
transportation fuels sold in our state 10% by 2020, Schwarzenegger said. 

     In addition, the agreement calls on the two governments to coordinate
policies that will achieve reductions in greenhouse gas emissions, including
exploring the potential for linkages between market-based mechanisms, such as
the Western Regional Climate Action Initiative.

		--Lisa Weinzimer, lisa_weinzimer@platts.com