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May 4, 2007 2:25 PM

The American Petroleum Institute (API) has issued a statement in which it says Senate legislation being considered on biofuels is not "economically achievable with current technologies."

The comment refers to the Senate Energy and Natural Resources Committee approval of biofuels legislation, Senate Bill 987. API said it supports the technology study and National Academy of Sciences review that have been included, but "regrets" that the bill does not include a safety valve.

The bill would authorize aggressive national goals for reducing gasoline usage by 20 percent by 2017, 35 percent by 2025, and 45 percent by 2030.

"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," API said in the statement. “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.

"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.”