The U.S. Environmental Protection Agency set a new renewable fuels standard of 4.66 percent to meet a federal mandate that at least 5.4 billion gallons of renewable fuels be blended into transportation gasoline in 2008.

Under the Energy Policy Act of 2005, the EPA is responsible for regulations to ensure that gasoline sold in the U.S. contains a minimum volume of renewable fuel.

The Renewable Fuel Standard program is designed to increase the volume of renewable fuel required to be blended into gasoline to 7.5 billion gallons by 2012.

The Energy Policy Act requires the agency to annually determine the standard, which applies to refiners, importers and non-oxygenate blenders of gasoline, by Nov. 30 for the following year.

Decatur, Ill.-based Archer Daniels Midland (NYSE: ADM) leads the pack of corn-based ethanol refiners in the country, with capacity of 1.1 billion gallons a year, and plans to add another 550 million gallons.

The standard for 2007 was 4.02 percent, equating to roughly 4.7 billion gallons.

The EPA said the Renewable Fuel Standard program, which formally began last September, creates new markets for farm products, increases energy security, and promotes the development of advanced technologies.