Did Obama just kill cap-and-trade?

President Obama says his top legislative priority is to have Congress pass an energy bill by the end of the summer. In last night’s Oval Office address on the BP spill and energy policy,  Obama called for new energy legislation but did not utter the words “greenhouse gases” or “cap-and-trade.” (His comments excerpted below.) Some say that in failing to do so, Obama essentially killed the idea of a carbon cap  (if it wasn’t already politically dead).  On the other hand, some environmentalists see a glimmer of hope in Obama’s mention of the energy legislation passed by the house last year, which includes a carbon cap. As with the health care debate, Obama appears to be giving a wide berth to Congress to give him something, anything, to sign before the November elections. This makes it likely that cap-and-trade legislation could go the way of the “public option” for health care. However, there is an important difference. If Congress doesn’t act to legislate carbon emissions, the EPA will try to regulate them. Some argue that would be a more expensive outcome.

From Obama’s “Remarks to the Nation on the BP Oil Spill” yesterday:

“…So one of the lessons we’ve learned from this spill is that we need better regulations, better safety standards, and better enforcement when it comes to offshore drilling.  But a larger lesson is that no matter how much we improve our regulation of the industry, drilling for oil these days entails greater risk.  After all, oil is a finite resource.  We consume more than 20 percent of the world’s oil, but have less than 2 percent of the world’s oil reserves.  And that’s part of the reason oil companies are drilling a mile beneath the surface of the ocean — because we’re running out of places to drill on land and in shallow water.

For decades, we have known the days of cheap and easily accessible oil were numbered.  For decades, we’ve talked and talked about the need to end America’s century-long addiction to fossil fuels.  And for decades, we have failed to act with the sense of urgency that this challenge requires.  Time and again, the path forward has been blocked — not only by oil industry lobbyists, but also by a lack of political courage and candor.

The consequences of our inaction are now in plain sight.  Countries like China are investing in clean energy jobs and industries that should be right here in America.  Each day, we send nearly $1 billion of our wealth to foreign countries for their oil.  And today, as we look to the Gulf, we see an entire way of life being threatened by a menacing cloud of black crude.

We cannot consign our children to this future.  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.  Now is the moment for this generation to embark on a national mission to unleash America’s innovation and seize control of our own destiny.

This is not some distant vision for America.  The transition away from fossil fuels is going to take some time, but over the last year and a half, we’ve already taken unprecedented action to jumpstart the clean energy industry.  As we speak, old factories are reopening to produce wind turbines, people are going back to work installing energy-efficient windows, and small businesses are making solar panels.  Consumers are buying more efficient cars and trucks, and families are making their homes more energy-efficient.  Scientists and researchers are discovering clean energy technologies that someday will lead to entire new industries

Each of us has a part to play in a new future that will benefit all of us.  As we recover from this recession, the transition to clean energy has the potential to grow our economy and create millions of jobs -– but only if we accelerate that transition.  Only if we seize the moment.  And only if we rally together and act as one nation –- workers and entrepreneurs; scientists and citizens; the public and private sectors.

When I was a candidate for this office, I laid out a set of principles that would move our country towards energy independence.  Last year, the House of Representatives acted on these principles by passing a strong and comprehensive energy and climate bill –- a bill that finally makes clean energy the profitable kind of energy for America’s businesses.

Now, there are costs associated with this transition.  And there are some who believe that we can’t afford those costs right now.  I say we can’t afford not to change how we produce and use energy -– because the long-term costs to our economy, our national security, and our environment are far greater.

So I’m happy to look at other ideas and approaches from either party -– as long they seriously tackle our addiction to fossil fuels.  Some have suggested raising efficiency standards in our buildings like we did in our cars and trucks.  Some believe we should set standards to ensure that more of our electricity comes from wind and solar power.  Others wonder why the energy industry only spends a fraction of what the high-tech industry does on research and development -– and want to rapidly boost our investments in such research and development.

All of these approaches have merit, and deserve a fair hearing in the months ahead.  But the one approach I will not accept is inaction.”