UPDATE 2-US issues gasoline waivers, 6 refineries now shut

(Adds EPA give Florida fuel waiver)

By Tom Doggett

WASHINGTON, Sept 5 (Reuters) - More than half the U.S. oil refineries along the Gulf Coast initially shut by Hurricane Gustav were coming back online, but the government on Friday still had to issue new clean air fuel waivers to four Southern states to ensure gasoline supplies were adequate.

Only six refineries, with a total capacity of 922,003 barrels per (bpd), remained shut, while five refineries with a capacity of 1.276 million bpd have resumed normal operations, the Energy Department said.

The total capacity offline is down from a peak of 14 refineries that could handle 2.716 million bpd.

Another six refineries with a capacity of 1.901 million barrels a day are operating at reduced rates and seven refineries with a capacity of 1.716 million bpd are restarting now that they have electricity, the department said.

The six refineries that remained closed represented more than 300,000 barrels a day in lost gasoline production and more than 200,000 barrels per day in distillate fuel output, according to the department.

Several pipelines also were unable to deliver gasoline because they lacked power.

As a result, the government is worried about maintaining fuel supplies in the region.

The Environmental Protection Agency late on Friday issued waivers from federal clean air requirements through Sept. 15 for gasoline sold in parts of Alabama, Florida, Georgia and North Carolina to ensure gasoline supplies keep flowing.

The agency also extended a fuel waiver for Louisiana from Sept. 8 to Sept. 15.

The agency said EPA Administrator Stephen Johnson determined that "extreme and unusual supply circumstances existed" in the affected states that are likely to result in shortages of gasoline that have to meet federal clean air regulations.

The waivers, which allow gasoline to be sold that doesn't meet pollution fighting requirements for the summer, were requested by each state and granted by EPA in coordination with the Energy Department.

While more refineries have power, it can take a week to restart them and return the facilities to full operations.

As of midday on Friday, there were still 654,000 customers in Louisiana without power.

The Energy Department's latest hurricane update can be found here The Reuters FACTBOX on how the oil industry is recovering from Gustav is at [ID:nN05392077] (Reporting by Tom Doggett; Editing by David Gregorio and Peter Cooney)