NASHVILLE, Tenn. — Gov. Bill Lee directed Tennessee state departments to suspend enforcement of dyed diesel restrictions through October, offering harvest-season relief for farmers and foresters.
Lee announced he told state departments to hold off on enforcing dyed diesel rules until the end of October. He thanked President Donald Trump for standing with the Tennesseans who provide food and fuel for the country after Trump signed an executive order on Monday, October 5, lifting federal restrictions through year’s end.
Dyed diesel is tax-exempt off-road fuel marked with a reddish tint so officers can tell it from taxed highway diesel. It is meant for farm and agricultural land use, with a limited roadway allowance to move products from fields to storage. Any illegal use of the red-dyed diesel on highways amounts to tax evasion.
Lee’s letter went to Agriculture Commissioner Andy Holt, Revenue Commissioner David Gerregano, Transportation Commissioner Will Reid and Safety Commissioner Jeff Long, directing them to stop enforcing the existing laws restricting red diesel on Tennessee highways through the end of October. He also asked Revenue to seek IRS penalty relief.
Sens. Page Walley and Ken Yager had written Lee on September 29 asking for a suspension through Nov. 15. Whether the governor will extend the order past October remains unclear. National average diesel prices recently topped $6 a gallon, adding pressure during harvest.
Officials said the temporary change aims to lower operating costs for farmers and timber foresters while harvest and hauling continue across the state.
