Formal EO order on red dye diesel short on specifics
The formal executive order allowing red dye diesel use over the road has been published. The post Formal EO order on red dye diesel short on specifics appeared first on FreightWaves .
President Donald Trump's executive order (EO) on implementing the red dye diesel tax break has been formally published in the Federal Register. However, the order lacks specifics on addressing a fundamental issue: state and federal rules are not in sync. The four-page EO begins by citing "historic efforts to ensure fuel affordability for our citizens" and acknowledges the need for further temporary relief.
It directs Treasury Secretary Scott Bessent to defer diesel fuel tax payment obligations and explore waiving penalties for red dye diesel use in over-the-road applications. The deferral period, if approved after a five-day review, would cover October 5 through December 31. Treasury is asked to pursue legislation to eliminate the obligation to pay deferred amounts.
States have already introduced laws allowing red dye diesel consumption on their roads, but inconsistencies between state and federal rules create tax-paying challenges for trucking companies. The EO aims to encourage coordination between the Federal Government and various stakeholders, including state governments, industry leaders, and labor organizations, to facilitate safe and expedient coordination.
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