This is a 5 percent increase from the proposed 2017 levels - 18.8 billion gallons of renewable fuel - that the EPA announced in May. About 15 billion gallons of this will come from conventional corn-based ethanol.

"Renewable fuel volumes continue to increase across the board compared to 2016 levels," said Janet McCabe, the agency's acting assistant administrator for the Office of Air and Radiation. "These final standards will boost production, providing for ambitious yet achievable growth of biofuels in the transportation sector."

Renewable Fuels Association president and CEO Bob Dinneen called the move a "positive signal," and said it will "stimulate new interest in cellulosic ethanol and other advanced biofuels, drive investment in infrastructure to accommodate E15 and higher ethanol blends, and make a further dent in reducing greenhouse gas emissions."

The American Petroleum Institute, on the other hand, called the higher ethanol fuel blends "irresponsible" and warned it will harm cars, causing "unnecessary repairs bills."

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