Obama speech short on energy, climate details

WASHINGTON, (Reuters) – U.S. President Barack  Obama’s national address on the Gulf of Mexico oil spill yesterday fell short of a strong call for comprehensive energy  and environmental legislation this year and left the U.S.  Congress with no clear direction.

Obama delivered his high-profile speech, coming on the 57th  day since the start of the huge BP oil spill, from the White  House Oval Office, a venue presidents normally reserve for  announcing major initiatives or explaining important  developments.

This speech was mostly the latter, which likely will be a  disappointment to supporters of strong legislation to clamp  down on offshore oil drilling practices and carbon dioxide  pollution blamed for global warming.

Last year, the House of Representa-tives narrowly passed a  comprehensive bill to reduce carbon dioxide emissions from  utilities, factories and oil refineries, but it has languished  in the Senate. Many saw Obama’s speech yesterday as an  opportunity to jump-start the effort in Congress.

Many lawmakers have been hoping to avoid a tough vote on  climate change this year and instead pass a much less ambitious  bill to encourage the use of alternative energy. That  legislation could be coupled with measures to clamp down on  offshore oil drilling safety practices and expanded liability  for Big Oil.

Here’s how Obama’s speech could play on Capitol Hill:

* There was little in Obama’s speech to prompt undecided  lawmakers to jump on the bandwagon for comprehensive climate  change legislation.

Instead, Obama put the ball in Congress’ court, saying he  was “happy to look at other ideas and approaches from either  (political) party — as long they seriously tackle our  addiction to fossil fuels.”

* Obama’s lack of details could underscore the divisions  within Congress, and especially the Senate, over how far energy  and environmental legislation should go just months before the  Nov. 2 congressional elections. Democratic leaders in Congress  are still gauging rank-and-file sentiment for tackling  controversial climate change legislation. Their willingness to  take chances could be waning, especially on the heels of tough  votes this year for healthcare reform.

* Obama could still launch a quiet lobbying campaign with  members of Congress for global warming legislation that would  mandate reductions in carbon dioxide pollution from electric  utilities and factories.

* Obama’s speech robs Republicans of a talking point they  began floating even before he delivered his speech.

“The president will use his remarks not as an occasion to  unite the nation in a common effort to solve this crisis, but  to make his case for a national energy tax,” Senate Republican  leader Mitch McConnell incorrectly warned earlier in the day.  He was referring to Democratic bills to reduce carbon dioxide  pollution, a move that Republicans say will bring higher  business costs and higher energy prices.

* Obama mentioned climate change legislation passed in the  House of Representatives, which became bogged down in the  Senate. But he didn’t throw his weight behind the House-passed  bill or alternatives being considered in the Senate.

“Last year, the House of Representatives” passed “a strong  and comprehensive energy and climate bill — a bill that  finally makes clean energy the profitable kind of energy for  America’s businesses.”

The president noted there are “costs” associated with such  legislation, but said the U.S. cannot “afford not to change how  we produce and use energy.” While he praised the House-passed  bill, he didn’t demand that the Senate do something similar.

* Given the lack of detail from Obama, the speech could  give Congress latitude on how to impose tougher offshore oil  drilling safety measures and ways to increase the use of  cleaner-burning alternative energy, something that even  Republicans back.

* Before the speech, some prominent lawmakers, including  Senator Joseph Lieberman, said they hoped Obama would help  rally support for climate change legislation by underscoring  the need to put a price on carbon dioxide emissions and thus  control the pollution.

“There are a lot of people in the Senate who are still  undecided” on climate change legislation, Lieberman, an  independent, told reporters a few hours before the speech.  Lieberman added: “The president is going to help us tonight” in  rallying congressional support.

But tough words from Obama were not uttered.

* Aside from any energy/environment legislation Congress  tries to pass with Obama’s urging, the administration and  Democratic lawmakers will continue to pressure BP and the oil  industry more broadly.

For example, three Democratic senators on Tuesday denounced  what they described as a reported plan by BP Plc to provide a  “backdoor payment” to shareholders through an escrow account.

And Obama hopes to talk BP into establishing a fund to  guarantee that the oil company will cover billions of dollars  in cleanup costs and economic assistance to Gulf Coast  communities.