The lack of detail in the President’s inaugural oval office speech is evidence of the difficult political realities the current administration faces in shepherding energy and climate legislation through Congress, though the Administration may be banking on a lame-duck/reconciliation strategy. With several current proposals on the table and midterms fast approaching, both the language and the potential passage of a bill this summer remain uncertain. Today’s GR Insight analyzes the White House’s renewed push for energy and climate legislation, with a Special Topic on the BP Escrow Fund.

President Obama’s first Oval Office speech was aimed at adding urgency to the political debate over energy, but his decision not to state his preferred course or bottom lines leaves his allies on Capitol Hill with tremendous hurdles in front of them if they are to move a bill into law by the end of the year. Despite significant political fallout over the Gulf Spill – in the form of lawsuits, hearings, and investigations – which will continue to reverberate through American politics for years to come, the underlying reality that there is not enough political will to pass wide-reaching climate legislation is as stark as ever before.  Democrats are scrambling to turn the situation to their political advantage by adopting tough measures aimed at oil and gas companies, while Republicans are accusing the President of “taking advantage” of the crisis to raise taxes on Americans.  No consensus on what could constitute a politically feasible way forward seems forthcoming.  What is certain is that the politcs of energy will be a hot-button issue for the duration of the 2010 campaign cycle.  Even if some climate legislation is to be passed this year, the far- reaching legislation that was part of Obama's campaign promises will be punted past 2010.

Few, If Any, Legislative Specifics

There is a disconnect between the way that President Obama framed the energy challenge facing the United States, during both this speech and throughout his campaign for President, in terms of a large national mission, and the actual proposals contained in Tuesday night’s speech, which frankly, are small-bore and largely recycled. In his Oval Office speech, President Obama said: “The tragedy unfolding on our coast is the most painful and powerful reminder yet that the time to embrace a clean energy future is now.”. 

See full article here.