NEW YORK (Reuters) - U.S. senators reintroduced a bipartisan bill on Thursday that would allow nationwide sales of gasoline with a higher blend of ethanol year-round, a plan that has the support of a leading oil trade group.

Senator Deb Fischer, a Republican from Nebraska, introduced the bill with senators including Tammy Duckworth, a Democrat from Illinois, and said it would do away with patchwork regulations that would have the blend containing 15% ethanol, known as E15, only available in certain areas of the U.S.

Year-round sales of E15 have been long sought by the biofuel industry and corn farmers, who would benefit from the increased market.

Fischer and Democratic Senator Amy Klobuchar from Minnesota first introduced the bill in 2023. The government currently restricts sales of E15 gasoline in summer months due to environmental concerns over smog, which the biofuel industry says are unfounded.

The legislation, if passed, would likely nullify a request from Midwestern governors that would allow expanded sales of E15 in their states, starting later this year. That request, approved in February 2024 by the Biden administration, is less appealing to industry players than the nationwide legislation, as some groups fear it could prompt localized fuel price spikes and supply issues.

The American Petroleum Institute, an oil trade group that has at times been at odds with the biofuel industry, said it supported Fischer's legislation.

"Year-round, nationwide E15 sales will prevent a confusing patchwork of state regulations and give consumers reliable access to the fuels they use every day," said Will Hupman, API's vice president of downstream policy.

The biofuel industry was pleased.

"This bill would bring long-overdue certainty to the marketplace, save consumers money, drive growth across the heartland, and reinforce American energy dominance," said Emily Skor, CEO of U.S. biofuel trade association Growth Energy.