Very interesting idea, but there are a few problems:
(1) Ontario itself hasn't yet stopped using coal-fired plants, and doesn't plan to for a few years yet:
Despite a Liberal promise to close all of the province’s coal-burning generating stations by 2007, only three will close on schedule. The fourth, Nanticoke — the province’s worst polluter — will close in 2009.
To the extent that standards of care come into play, it'll thus be awfully tough for Ontario to get anywhere while not practicing what it's suing for.
(2) As noted by Marilyn Churley, part of the incoming emissions result from coal power plants from which Ontario purchases electricity:
As long as they’re importing power from the U.S. midwest that burns coal, I don’t think that they have a leg to stand on.
(3) If Ontario succeeds in such a lawsuit, then surely Quebec and the maritime provinces would have an equally strong claim against Ontario itself for sending pollution their way. Any gain would thus be temporary at best.
Nice gambit by McGuinty to try to get attention, but until Ontario at least tries itself to meet the standard it's demanding, this isn't the answer to any question other than "what's the best way to irritate the U.S. for absolutely no potential gain?".
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