10/06/2026
There is still a lot of confusion as to who is allowed to take advantage of using dyed-diesel for on-road use. Both the letter from Gov. Bill Lee and the release from President Trump's executive order are unclear of who can take advantage and when they can do it, penalty free.
We will continue to update as more information comes forth.
On Friday, Governor Lee issued an internal letter HERE:https://mcusercontent.com/5e78729a1cf5ff6a5813fefb1/files/d224fa4b-b9b0-a37e-9350-57f6705653f1/Lee_Letter.pdf
This waives enforcement action for persons in the agriculture and forestry sector from penalty for using dyed diesel on road.
The state’s letter is very narrow and only allows waived enforcement for specific entities. It does not in any way change who should be charged tax.
As for the announcement from the Trump Administration, this is the important section:
"Importantly, the Executive Order does not itself authorize highway sales or on-highway use of dyed diesel fuel. Whether relief is available, whom it covers, and on what conditions depend on Treasury determinations and guidance not yet issued. State actions also may be necessary. EMA members, therefore, should proceed with caution."
Many folks believe that this immediately allows dyed diesel to be used on road, but it does NOT. We will be waiting until formal guidance is issued by the Treasury Department, and will update you with that information when we have it.
