Republican presidential candidate John McCain on Monday vowed to compete in California this fall despite trailing by double digits in recent polls, telling donors at a Sacramento fundraiser he will not "take your money and leave."

The Arizona senator gave a wide-ranging speech at the Sheraton Grand Sacramento in which he said the United States is "winning in Iraq," while the nation needs to wean itself from foreign oil by pursuing clean energy and offshore drilling.

Despite his assurances, McCain did not specify how he would mount a competitive effort in California, a state no Republican presidential candidate has won since George H.W. Bush in 1988. McCain trailed Democratic Sen. Barack Obama by 24 percentage points in a July Field Poll.

Gov. Arnold Schwarzenegger appeared at the fundraiser but did not speak. McCain said the Republican governor was right to chide previous national candidates for holding fundraisers in California while spending the money in battleground states.

"I also want to look you in the eye – and I appreciate your generosity – but I also want to tell you we will compete in the state of California," McCain told donors. "We will compete and win in the state of California. We will not take your money and leave."

McCain shook hands outside the hotel but held no public events in his Sacramento stop, after which he flew to Southern California to tape an appearance on "The Tonight Show" and appear at an evening fundraiser.

About 600 donors and GOP leaders attended the $1,000-a-plate Sacramento luncheon, including Republican legislators, Capitol lobbyists and actress Patricia Heaton, best known for her role on the television show "Everybody Loves Raymond." The event raised an estimated $500,000.

Ron Nehring, chairman of the California Republican Party, said "a good chunk" of the money McCain raises in California stays here under a joint fundraising agreement with the Republican National Committee, although he acknowledged McCain also needs money elsewhere because he is running a national campaign.

Dorothy Lien, 77, a Carmichael Republican, was impressed Monday with McCain's grasp of various topics. But she was not convinced that he could win California.

"I wish, but I think California is notoriously Democratic," Lien said. "The amazing thing to me is that we have Schwarzenegger. But you never know. I'm not sure it's where he should be expending his resources."

Roger Salazar, spokesman for the California Democratic Party, insisted McCain will not be competitive in the state.

"That's a pipe dream," Salazar said by phone from the Democratic National Convention in Denver. "Look, the only way John McCain wins California is if he sweeps the country, and that ain't going to happen. All he's doing is taking the money and running."

McCain laced his 27-minute speech with California-Arizona jokes, several related to water or the lack thereof. He promised to veto bills with pork-barrel spending. He said the United States needs to consider nuclear power as a serious option. And he backed offshore oil drilling in states that support it, while recognizing that Schwarzenegger opposes such activity.

"My view would be that we need to drill here, and we need to drill now," McCain said.

He barely mentioned Obama in his Sacramento speech, saving his few comparisons for their policies on Iraq. McCain said Obama dismissed the "surge" of an additional 30,000 troops that started in early 2007, while he believed the plan was necessary and is responsible for the United States "winning in Iraq."

The Republican senator began his California swing one week before the Republican National Convention opens in St. Paul, Minn., where he said Monday that conventiongoers may see Schwarzenegger. McCain referred to Schwarzenegger's speaking spot on the convention's first night, but the governor has said he will not attend unless the state budget is approved, an increasingly unlikely possibility.

Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548.