Both issues fall under the nation's Renewable Fuel Standard, a 2005 program that requires American refineries to blend biofuels into transportation and heating fuel. The program was designed to reduce U.S. dependence on foreign fossil fuels, cut pollution and greenhouse gas emissions and bolster the domestic biofuel industry.
Trump has walked a tightrope on the issue throughout his presidency. His Environmental Protection Agency has angered farm states by granting more waivers than usual to small refineries, denting demand for biofuels. Meanwhile, refiners have been disappointed by the EPA's refusal to cut the amount of biofuel they're required to blend into gasoline and diesel.
On Tuesday, the American Fuel and Petrochemical Manufacturers called the proposal to allow year-round E15 sales "ill-conceived" and "unlawful."
"We are disappointed to see that despite good-faith efforts by refiners to find potential solutions, the Administration has unilaterally embraced a one-sided approach that only serves the ethanol community, which has shown little interest in finding common ground," Chet Thompson, president and CEO of the trade group said in a statement.
The president has sought a path forward with corn-state senators, such as Iowa Republicans Chuck Grassley and Joni Ernst, as well as energy district lawmakers, including Republicans Ted Cruz of Texas and Pat Toomey of Pennsylvania. However, a solution has so far eluded the White House.
Trump now wants the EPA to issue a waiver to allow summertime sale of E15, a fuel composed of 15 percent ethanol and 85 percent gasoline.
The senior White House official said the action is "directed at increasing the supply of biofuels and providing consumer choice and is in line with the president's free market approach to the energy market." Asked about potential lawsuits, the official said the White House believes issuing a waiver would survive legal scrutiny.