U.S. President Donald Trump signed an executive order (EO) expanding access to tax-exempt diesel fuel during a rally at Grand Island, Nebraska on Monday, Oct. 5.
Trump signed the order on stage at the Pinnacle Bank Expo Center on the Nebraska State Fairgrounds, where Executive Assistant to the President Natalie Harp brought the document out for his signature, according to pool reports and rally remarks. The EO also directs federal agencies to waive longstanding off-road restrictions on red-dyed fuel and presses states to suspend their own diesel taxes.
Executive Order Provisions
The order directs federal authorities to expand access to tax-exempt diesel – the fuel used in tractors and off-road machinery, dyed red so law enforcement can detect tax evasion if operators use it for highway driving [1]. Under the directive, red-dyed diesel is temporarily approved for on-road use, lowering the cost of hauling freight by 24.4 cents per gallon, according to the order and White House officials.
Trump said lower fuel prices would save truckers roughly $100 per fill-up and reduce farmers' operating costs by millions of dollars collectively. Purchase volume limits currently in place on red-dyed diesel sales will not be enforced under the order, officials said.
A White House fact sheet said Trump directed the secretaries of transportation, agriculture, defense and the Treasury to work on expanding access to tax-exempt diesel and to encourage states to suspend their diesel taxes [2]. The action follows earlier administration moves to lower fuel-related costs, including a proposal to end the Biden-era "limp mode" truck rule that the Environmental Protection Agency said would save truckers an estimated $12 billion [3].
Fuel Prices and State Emergency
Diesel prices in Nebraska averaged just below $6 per gallon on Monday, down from a record $6.23 set Sept. 22, according to the American Automobile Association. Nationally, diesel averaged $6.32 per gallon after peaking at $6.53 last month, the motoring club said. Both figures reflect an increase of $2.63 compared with the same time last year.
Nebraska Gov. Jim Pillen declared a state-level emergency on Sept. 24, citing a distillate fuel shortage, and signed two executive orders aimed at reducing fuel costs for harvesting and hauling. The orders are in effect until Dec. 23 unless further action is taken to codify them.
"That was a bad day for Nebraska and Nebraska agriculture," Pillen said during the rally, referencing the high diesel costs during the ongoing harvest season. Trump, meanwhile, criticized California and other states for limiting refinery capacity in recent years.
Political Context
The rally was part of Trump's 32-day campaign tour and was intended to generate support for Republicans, including Pillen and U.S. Sen. Pete Ricketts (R-NE). Pillen faces former State Sen. Lynne Walz (D-Fremont) in next month's gubernatorial election, while Ricketts faces independent candidate Dan Osborn in a race that recent polls suggest has tightened.
Ricketts asked the crowd to turn out for the midterms to protect the party's Senate majority, according to rally remarks. Trump also highlighted border security, stock market highs, lower drug prices and tax reforms benefiting small businesses and families [1].
Conclusion and Next Steps
The executive order directs agencies to implement the expanded tax-exempt diesel access and review tax policies, officials said. The temporary on-road allowance for red-dye diesel and related state measures are set to last until Dec. 23 unless codified or extended.
A review by the Department of the Treasury and negotiations between states and the Department of Transportation will determine whether further diesel tax reductions take effect, according to the order. The outcome of those reviews, along with the midterm elections next month, will shape whether the temporary measures become permanent policy.
References
- Trump Signs Order to Expand Access to Tax-Exempt Diesel | NTD. https://www.ntd.com/trump-announces-order-to-expand-access-to-tax-exempt-diesel_1177029.html
- Aiming at fuel costs, Trump opens tax-exempt ‘red dye’ diesel. https://www.nbcnews.com/business/energy/aiming-fuel-costs-trump-opens-tax-exempt-red-dye-diesel-rcna601748
- BREAKING: President Trump’s EPA Moves To END “Limp Mode” Truck Rule, Save Truckers $12 BILLION. https://100percentfedup.com/breaking-president-trumps-epa-moves-end-limp-mode/?utm_source=rss&utm_medium=rss&utm_campaign=breaking-president-trumps-epa-moves-end-limp-mode
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