the problem is - some states are going to kyoto route, on their own. California will start it, and the other big NE states will join. EPA has so far not allowed these states to regulate CO2 as an emission, but if they grant that waiver, then Kyoto has essentially begun with those states.
That's exactly how it should be: each state devising its own solutions as it sees fit. Of course, some will go too far, like Schwarzengger's California, but when an individual state goes too far, most of the misery doesn't get inflicted on the rest of the country.