Governor Rhoden Adjusts Enforcement Priorities for Dyed Diesel

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FOR IMMEDIATE RELEASE

October 6, 2026

Contact: Josie Harms

Governor Rhoden Adjusts Enforcement Priorities for Dyed Diesel

PIERRE, S.D. - Today, Governor Larry Rhoden directed the South Dakota Department of Public Safety (DPS) to temporarily adjust enforcement priorities surrounding the use of dyed diesel fuel. This will provide relief for farmers, truckers, and all taxpayers struggling with high diesel prices.

"When diesel prices are high, agriculture suffers, transportation costs increase, and consumers pay more for all goods and services," wrote Governor Larry Rhoden. "l am directing the Department of Public Safety to adjust enforcement priorities regarding the use of dyed diesel fuel. By taking this action, we will provide meaningful relief to South Dakota farmers...[and] allow all taxpayers to realize meaningful savings from using dyed diesel."

This direction works in tandem with President Trump's recent Executive Order suspending the enforcement of federal penalties for using dyed diesel fuel on highways and public roads.

While President Trump's Executive Order is in effect, DPS will prioritize commercial motor vehicle inspections that present a threat to public safety rather than identifying the use of dyed diesel fuel. Governor Rhoden sent a letter to DPS Secretary Robert Perry communicating this direction. You can find a copy of the letter here.

While some states allow governors to suspend state laws during an emergency, other states, including South Dakota, only allow the governor to suspend administrative rules. That limited authority makes it necessary for the federal government to act to bring relief. Governor Rhoden is also committed to addressing additional solutions, including potential legislation.

"Because taxes on diesel fuel are set in statute in South Dakota, I cannot unilaterally waive penalties on dyed diesel used for non-tax-exempt purposes. I can only direct DPS to not take enforcement action," continued Governor Larry Rhoden. "Legislation may be necessary to retroactively waive state taxes owed on these products to comply with the President's order. Pending legislative approval, this waiver will cover a period from today until the end of calendar year 2026."

Continuing to exhaust options to support farmers during this turbulent time, last week and prior to the Presidential action yesterday, Governor Rhoden had also directed the South Dakota Department of Revenue to request this penalty relief for expanding uses of dyed diesel from the U.S. Internal Revenue Service.

Last week, Governor Rhoden signed Executive Order 2026-11, which:

• Allows farmers to haul crops, livestock, and other agricultural commodities at 10% above weight restrictions, which will allow them to take fewer trips when hauling crops, livestock, and other agricultural commodities;
• Suspends a $25 overweight trip permit; and
• Directs the Department of Revenue to monitor fuel supplies and determine if a tax refund to suppliers is warranted if regular diesel needs to be used in farm machinery because of any future shortage of dyed diesel.

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