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Dec 10, 2007 3:06 PM

The American Petroleum Institute (API) has issued a statement criticizing a new energy bill passed by the House of Representatives December 6, and has urged the Senate to reject the legislation, according to API information.

The bill, which would raise fuel economy standards to 35 miles per gallon by 2020 and establish a nationwide renewable energy mandate and boost biofuel production to 36 billion gallons a year by 2022, was passed by the House despite a veto threat from the White House.

Under the bill, more than $13 billion in tax breaks to oil companies would be repealed to help fund renewable energy.

API said the bill contains measures that would make it more difficult to expand domestic oil and natural gas production and refining capacity while costing American jobs.

The bill imposes an unrealistic mandate for an increase in renewable fuel use by 2022, and over-promises on the potential of renewable energy to reduce petroleum demand, API said.