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From Executive Order Eases Red-Dye Diesel Use, But New York State Law Remains Restrictive

How could the executive order affecting fuel use in New York affect Kathy Hochul?

Possible What happens if… A possibility worth considering, not a forecast.

Governor Hochul may face pressure to adjust state fuel rules amid federal tax relief The federal executive order waiving penalties and deferring a nearly 25-cent federal excise tax on red-dyed diesel does not apply in New York State, as the state still prohibits its use on public roadways. This disparity has led to calls from state legislators, such as Assemblyman Scott Gray, urging the state to match the relief offered by at least a dozen other states. As the executive leader of New York State, Governor Kathy Hochul would be responsible for deciding whether to adjust state policy and rules to provide similar relief to farmers and truckers.

Reported by 3 independent outlets Written Oct 8
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How it reaches Kathy Hochul

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The facts so far

As reported. Each one links to where it comes from.

  • The executive order waives federal penalties and defers a nearly 25-cent federal tax on dyed diesel until December 31, 2026.northcountrynow.com, wcax.com
  • New York still prohibits the use of dyed diesel on public roadways and collects its own fuel taxes.northcountrynow.com
  • Assemblyman Scott Gray is calling on the state to act quickly to give farmers, truckers and families relief.northcountrynow.com, wcax.com
  • Gray noted that at least a dozen states have already acted to match the federal relief.northcountrynow.com, wcax.com

Why it matters

For Governor Hochul, the issue represents a political challenge to maintain the status quo of New York's fuel regulations versus responding to external pressure for economic relief. The decision involves balancing the state's existing legal framework against the economic needs of constituents like farmers and truckers who are seeing relief in neighboring states.

This situation is not unique; the reports note that New York has issued similar waivers in the past, such as following Hurricane Sandy in 2012. This history suggests that the state government has precedent for adjusting its fuel tax and usage policies in response to major events or external pressures.

What we don't know yet

  • Will the state legislature pass legislation to match the federal relief?
  • What specific exemptions, if any, would the state consider for red-dyed diesel use?

Is this still moving?

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What would change this answer

The state legislature passes a bill matching the federal waiver.This would force the Governor to sign the bill, making the policy change certain and immediate.
The Governor issues a statement reaffirming the current state prohibition.This would solidify the current policy, reducing the political pressure from legislators and constituents.

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The full eventExecutive Order Eases Red-Dye Diesel Use, But New York State Law Remains Restrictive Everything aboutKathy Hochul

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.