Factbox: EPA sets 2010 U.S. renewable fuel standard

(Reuters) - The U.S. Environmental Protection Agency said that ethanol and other renewable fuels must account for 8.25 percent of total gasoline and diesel sales in 2010 to meet Congress' mandate that nearly 13 billion gallons (49.2 billion liters) of renewable fuels be produced this year.

That is lower than last year's 10.21 percent renewable fuel standard that the EPA announced in November 2008.

These rules are separate from the amount of ethanol the EPA now allows to be blended into each gallon of gasoline, which is in most cases 10 percent.

In other rulings:

* The agency lowered the original 100 million gallon cellulosic ethanol output target Congress set for this year to 6.5 million gallons.

* The EPA said it does not think the 100 million gallon target can be met because many of the 30 cellulosic companies it contacted have delayed or canceled their expansion projects.

* In addition, the EPA set the 2009/2010 combined biomass diesel output target at 1.15 billion gallons, which has to be reached by the end of this year.

MEASURING EMISSIONS

The EPA also issued final rules for measuring carbon dioxide emissions from ethanol and other biofuels:

* The renewable fuels standard includes a measure of carbon emissions for biofuels known as indirect land use change.

That method measures emissions that result from land cleared abroad to grow more biofuels or food as a result of large amounts of land being used in the United States to grow feedstock crops for ethanol, such as corn.

Federal law required the EPA to analyze the life cycle greenhouse gas emissions from increased renewable fuel use. The new rules also require some biofuels to meet certain greenhouse gas reductions compared to the gasoline and diesel fuels they replace.

Below are some of EPA's findings on biofuel emissions:

* Ethanol produced from corn starch at a new natural gas, biomass, or biogas fired facility using advanced efficient technologies will meet the 20 percent emission reduction threshold, as required by federal law, compared with the 2005 gasoline baseline.

* Biobutanol from corn starch also meets the 20 percent threshold.

* Biodiesel and renewable diesel from soy oil or waste oils, fats, and greases will meet the 50 percent GHG threshold for biomass-based diesel compared to the 2005 petroleum diesel baseline.

* Biodiesel and renewable diesel produced from algal oils will also comply with the 50 percent threshold should they reach commercial production.

* Ethanol from sugarcane complies with the applicable 50 percent reduction threshold for advanced biofuels.

* Cellulosic ethanol and cellulosic diesel would comply with the 60 percent GHG reduction threshold for cellulosic biofuel.

(Reporting by Ayesha Rascoe and Tom Doggett; Editing by Marguerita Choy)