EPA boosts 2008 renewable motor fuel requirement

WASHINGTON (Reuters) - The Environmental Protection Agency on Friday increased the amount of renewable motor fuels, mostly ethanol, that will have to be sold in the U.S. market this year.

Renewable fuels will have to make up 7.76 percent of the 145 billion gallons of gasoline expected to be consumed in the United States during 2008, the EPA said.

The higher renewable fuels standard was required by a new energy law that boosts renewable fuels use to 9 billion gallons this year to help make gasoline burn cleaner, stretch available U.S. motor fuel supplies and reduce petroleum imports.

Congress has mandated that U.S. renewable fuels use slowly increase each year until it reaches 36 billion gallons in 2022.

More of the increase in future supplies is supposed to come from cellulosic ethanol that will be made from wood chips, switch grass and other agricultural and forest waste. Most U.S. ethanol is now made from corn.

Alaska is the only state not subject to the U.S. renewable fuel standard, after Hawaii joined the program last year.

(Reporting by Tom Doggett; Editing by John Picinich)