API Statement on Senate biofuels bill

Ray Connolly | 202.682.8272| connolly@api.org

WASHINGTON – API issued the following statement commenting on Senate Energy and Natural Resources Committee approval of biofuels legislation, S. 987:

“API supports a realistic and workable renewable fuels standard. Our industry is the nation's largest user of ethanol and is increasing the volume of renewable fuels in America’s transportation fuel portfolio. 

“The renewable biofuels mandate contained in this bill for advance biofuels is not economically achievable with current technologies.  API supports the technology study and National Academy of Sciences review that have been included.  API regrets that the bill does not include a safety valve.   Appropriate adjustments may be needed to ensure that energy companies and consumers are not penalized due to the economic and technical hurdles that might prevent reaching alternative or biofuels usage targets or goals.

“The gasoline reduction goals in this legislation are even more stringent than the renewable biofuels mandate.  Moreover, these goals are in fact mandates which, in effect, give a ‘blank check’ to the executive branch to develop regulatory approaches to implement the goals.  API does not support giving the regulatory agencies such wide ranging latitude to implement policies that could have dramatic impacts on our way of life.

“API looks forward to working with the Senate to improve the legislation approved today. Looking ahead, we need to develop all economically viable energy sources including fossil and renewable fuel sources.  By relying, to the greatest extent possible, on market forces, understanding consumer impact and preferences, encouraging development of new technologies, and addressing secondary impacts of expanded renewable fuel usage, our industry and the nation will meet the energy challenges in the years ahead.”