Source: POLITICO'S MORNING AGRICULTURE, 10/10/18

President Donald Trump's move to expand ethanol sales is already facing legal questions from the oil industry and environmental groups before the rulemaking process has even launched. Trump on Tuesday directed the EPA to allow year-round sales of E15 — gasoline containing 15 percent ethanol — which was previously restricted during summer months. "Today, we are unleashing the power of E15 to fuel our country all year long," he said at a rally in Council Bluffs, Iowa, in front of supporters wearing green "Make Our Farmers Great Again" hats.

It's a big win for corn growers and ethanol producers, writes Pro Energy's Eric Wolff. Trump called it "great for our farmers," and Agriculture Secretary Sonny Perdue hailed the move as "another victory for our farm and rural economies" that'll hike demand for corn.

But the oil industry, some environmentalists and other trade groups, like those representing chain restaurants, weren't on board. Some appeared to threaten legal action to challenge the eventual rules, which EPA aims to have in place before June.

Lawyer up: National Wildlife Federation CEO Collin O'Mara said the move was "simply not legal under the Clean Air Act," which set limits on fuel volatility levels. O'Mara warned in a statement that expanded ethanol sales would "accelerate the vast damage to our wildlife habitat, drinking water, and air quality caused by current federal biofuels policy." The American Petroleum Institute, an influential oil trade group, is also "aggressively" examining its legal options to contest the decision, Eric reported.

With a court fight brewing, Congress could still weigh in. House Agriculture ranking member Collin Peterson noted the E15 changes "will likely get tied up in the courts, so passing legislation remains the most reliable avenue to finally getting this done." Sen. John Cornyn (R-Texas) and Rep. John Shimkus (R-Ill.) have spearheaded efforts to overhaul the ethanol mandate, an approach favored by big oil companies.

Sen. Chuck Grassley, who applauded Trump's decision on Instagram as being "very good for agriculture," told reporters he's not expecting any imminent court orders. "I don't think you get an injunction tomorrow," the Iowa Republican said, suggesting a legal challenge wouldn't come until the rules move forward after a public comment period.

Mixed reaction from farm world: National Farmers Union President Roger Johnson said allowing E15 sales year-round was generally good news for farmers — but it didn't offset waivers EPA granted to a host of oil refiners exempting them from meeting ethanol levels.

The Iowa Farm Bureau and Iowa Corn Growers Association, however, were fully behind the Trump administration. ICGA President Curt Mether called the decision a "win for consumers, a win for our environment and a much needed win for Iowa's corn farmers."