API statement on White House comments on alternative fuel plan

WASHINGTON – The American Petroleum Institute issued the following statement today following President Bush’s comments on an alternative fuel plan:

“API is pleased that the Bush administration has decided to undertake a full rulemaking and comment approach that recognizes the technological challenges and significant infrastructure hurdles that must be resolved to significantly increase renewable and alternative fuels in the nation’s fuel mix.

“We believe that renewable and other alternative fuels have an important role to play in meeting U.S. energy needs. Our industry has invested heavily to meet and exceed the federal requirement for ethanol-blended gasoline. In 2006, we used 25 percent more than required -- and, according to Energy Information Administration estimates, will exceed the 2007 requirement as well.

“The president’s plan calls to increase the use of alternative fuels in the fuel mix to 35 billion gallons by 2017. Ethanol has a role as a transportation energy source, but that role will be limited until significant technology breakthroughs permit economic production of ethanol from biomass (cellulosic). The timing of such breakthroughs is highly speculative. There is no guarantee that technologies would emerge to enable large-scale economic cellulosic ethanol production in the next decade and ensure reliable energy for U.S. consumers at affordable prices. It is critical that any alternative fuels standard include regular technology and feasibility reviews that would trigger appropriate adjustments to mandates to ensure companies and consumers are not penalized due to obstacles that might prevent meeting usage targets.