Governor Brad Little issued an executive order titled “The Idaho Agriculture and Transportation Freedom Act” from Boise, temporarily halting state inspections of dyed diesel fuel. The measure takes effect Friday and remains in place for 30 days, aiming to reduce regulatory burdens on farmers and ranchers during the critical harvest season.
The governor directed the Idaho State Police and the Idaho Transportation Department to discontinue these inspections for the designated period. This state action follows a federal executive order issued by President Donald Trump on Monday, which permits off-road dyed diesel for highway use while deferring associated federal taxes.
Dyed fuel is typically restricted to off-road agricultural vehicles because purchasers are exempt from paying federal and state highway taxes. Under normal circumstances, using this fuel on public highways violates tax collection rules. The Tax Foundation notes that Idaho’s gas tax stands at 33 cents per gallon.
“Idaho farmers and ranchers work hard to feed our families, our country, and the world,” Governor Little said regarding the directive.
Senate President Pro Tem Kelly Anthon supported the move, noting it offers immediate relief while allowing time for policy review. “This order provides some immediate relief while giving the state time to review these requirements,” Anthon said.
State officials will use this window to evaluate current enforcement policies regarding dyed fuel and examine how other states ensure compliance with tax regulations. House Speaker Mike Moyle was also listed among officials commenting on the initiative.
The pause in inspections comes as diesel prices remain elevated. AAA reported that diesel sold for $6.415 per gallon in Idaho on Friday, adding financial pressure to agricultural operations already managing tight margins during harvest.