Montana farm, ranch and timber haulers can legally run untaxed, red-dyed diesel on public roads through Nov. 23 under a temporary executive order issued this month in Helena. State transportation officials have now published guidance on who qualifies, what happens when the order ends, and how the change affects fuel-tax reporting.
Here is what the order does and does not cover.
What the order says
Lt. Gov. Kristen Juras signed Executive Order 11-2026 on Oct. 9, acting on behalf of Gov. Greg Gianforte, who was leading a trade mission to India at the time. The Montana Constitution allows a governor to delegate statutory duties to the lieutenant governor.
The order temporarily suspends enforcement of Montana’s dyed-fuel restrictions for commercial motor vehicles directly engaged in agriculture or timber operations. As quoted by NBC Montana, the order cites “recent global events” that “have severely limited the diesel supply chain,” and notes that both industries rely heavily on diesel-powered trucks to move products.
“Montana farmers, ranchers, and timber industry workers are feeling the squeeze at the gas pump,” Gianforte said in the announcement. The order followed a presidential executive order earlier that week expanding access to tax-exempt dyed diesel, NBC Montana reported.
Why dyed diesel matters
Dyed diesel is chemically similar to the fuel sold at highway pumps, but it is exempt from road fuel taxes because it is meant for off-road use: tractors, combines, generators, construction and logging equipment. The red dye lets enforcement officers spot untaxed fuel in a vehicle’s tank. Running it in a truck on a public highway is normally a violation.
Many Montana farms and ranches already keep dyed diesel on hand for field equipment. The order lets qualifying operators put that same fuel in their highway trucks for now, which can mean meaningful savings per gallon and a backup supply when retail diesel is tight.
Who qualifies
According to a Montana Department of Transportation FAQ published Oct. 19, the vehicle must be a commercial motor vehicle that is directly engaged in agricultural or timber operations. Under state rules, that generally means a vehicle with a gross weight rating of 10,001 pounds or more, a vehicle that carries more than eight passengers for pay or more than 15 without pay, or one hauling placarded hazardous materials.
MDT lists examples of covered work, including hauling livestock, feed, seed, fertilizer and other farm inputs and outputs, as well as logs, wood chips, biomass, forestry equipment and other timber materials. The order does not open dyed diesel to commercial trucking in general, or to passenger cars and pickups that don’t meet the commercial-vehicle definition.
Why Nov. 23
Under Montana law, the governor can issue this kind of executive order for only 45 days, with the option to extend it later, MDT said. That puts the end date at Nov. 23. As of Oct. 19, the state had not announced an extension.
What happens when it ends
Neither the presidential order nor the state order addresses what operators should do with dyed fuel left in their tanks after the suspension expires, MDT noted. The department said it is still working out how enforcement will resume.
For 30 days after the order expires, MDT Motor Carrier Services officers will issue only warnings to agricultural and timber vehicles found with dyed fuel. Those operators will be told to burn off the fuel or drain and purge the tank within seven days of the inspection. Under state law, more than 2 parts per million of dye in a propulsion tank on a public road counts as running on untaxed fuel.
Tax reporting
Carriers that file quarterly returns under the International Fuel Tax Agreement will need to account for dyed fuel used during the suspension. MDT said it will publish guidance before the end of the fourth quarter on how to report it.
Reaction on the road
Not every trucker expects much relief. Jim Schwehr, owner of Done Right Trucking, told NBC Montana he is paying roughly $33,000 more per week to fuel his 27 trucks. He said many Montana fuel stops that sell dyed diesel have only one pump for it, which limits how useful the order is for high-volume fleets.
Where to get answers
MDT lists Motor Carrier Services contacts for questions about specific vehicles and operations, and its fuel tax staff for IFTA questions. The full FAQ and the text of the executive order are posted on the department’s news site.
Sources
- Office of the Governor, “Lt. Gov. Juras Issues Executive Order to Temporarily Suspend Enforcement of Dyed-Fuel Provisions for Commercial Vehicles,” Oct. 9, 2026: news.mt.gov
- Montana Department of Transportation, “Executive Order No. 11-2026 FAQs,” Oct. 19, 2026: mdtnews.mt.gov
- NBC Montana, “Montana temporarily allows commercial vehicle use of dyed fuel,” Oct. 9, 2026: nbcmontana.com