President Donald Trump issued an executive order on October 5 granting temporary relief from federal penalties for using dyed diesel on public highways through December 31. The directive tasks the Treasury Department with determining whether certain federal fuel taxes can be deferred or potentially forgiven.
In response, Idaho Governor Brad Little ordered a 30-day suspension of dyed-diesel inspections by the Idaho State Police and the Idaho Transportation Department four days after the presidential action. While the governor’s order pauses enforcement checks, it does not alter state laws that restrict dyed diesel use in vehicles operating on public highways.
The relief period offers a window for farmers, ranchers, truckers, and other businesses to address fuel contamination issues without immediate federal penalty. However, drivers face technical challenges as residual red dye can remain in a vehicle’s fuel system for months after switching back to clear diesel.
The Idaho Tax Commission recommends draining fuel, replacing filters, cleaning tanks and lines, refilling with clear diesel, and paying applicable taxes if dyed diesel is accidentally introduced into a licensed vehicle. The Illinois Department of Revenue has noted similar persistence issues and established recordkeeping requirements for qualifying users.
Legislative action on the matter must wait until January, when the Idaho Legislature returns for its regular session—after the federal relief period expires. Until then, state agencies operate under the temporary inspection suspension while federal penalty protections remain in place through year-end.