U.S. Representative Greg Steube, a Republican from Florida, introduced legislation on July 21 that would end federal fines for using dyed diesel fuel on public roads and highways.
The bill, titled the Restoring Economic Diesel (RED) Fuel Act of 2026, aims to eliminate penalties currently enforced under section 6715 of the Internal Revenue Code of 1986.
Dyed diesel is designated for agricultural and off-road equipment, such as tractors and heavy machinery. Because it is intended for off-road use, it is exempt from the standard federal fuel tax of 24.3 cents per gallon. Under existing law, driving a vehicle on public roads using dyed fuel triggers a federal fine of $1,000 or $10 per gallon used, whichever amount is higher.
Steube argued that the current enforcement mechanism unnecessarily burdens workers who use off-road vehicles.
“Farmers, ranchers, and small business owners who rely on off-road diesel should not be treated like criminals over a fuel dye,” Steube said in a statement accompanying the bill. “The RED Fuel Act removes an outdated penalty structure and lets Americans use the fuel they need to do their jobs.”
If passed, H.R. 268 would remove section 6715 from the tax code along with related enforcement provisions. Under the draft language of the legislation, the changes would apply retroactively to fuel sold or used after December 31, 2025. The bill has been referred to the House Committee on Ways and Means for further consideration.
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