Abbott issues disaster declaration for diesel fuel crisis, waives restrictions
Gov. Greg Abbott on Monday issued a statewide disaster proclamation certifying a diesel fuel shortage. The shortage “poses an imminent threat or occurrence of harm to the public health and safety in Texas,” he said in the proclamation. The proclamation applies to all 254 counties in Texas.
It allows expanded use of dyed diesel on Texas roads, increases the allowable weight for fuel, agricultural, and timber loads, and suspends Texas Low Emission Diesel (TxLED) rules to the extent authorized by the EPA.
Abbott also requested the EPA waive federal ultra-low sulfur diesel requirements. Dyed diesel is off-road fuel marked red, typically used in agricultural operations and sold without a motor-fuels tax. Because it is untaxed, state law ordinarily bars its use on public roadways. Abbott’s proclamation suspends state restrictions and associated penalties to enable operators to use the fuel on Texas roads. It does not waive the state fuel tax.
“Texas agriculture and freight run on diesel,” Abbott said. “Record prices put both industries at risk and raise costs for every Texas family. Farmers and truckers can now use dyed diesel on Texas roads, and fuel, crop, and timber loads can move at a higher weight. These steps cut costs on the farm, on the road, and at the store.”
The proclamation also suspends state oversize and overweight permitting requirements for vehicles loaded with fuel, agricultural, or timber products, allowing for loads with a gross weight of up to 95,000 pounds.
Abbott’s EPA request regarding federal ultra-low sulfur diesel rules and state TxLED rules applies to 110 Texas counties. The rules limit which diesel can be sold. The waiver would allow more fuel to reach Texas pumps.
Texas Railroad Commissioner Wayne Christian applauded the move, saying that Abbott’s actions were a “common-sense step towards expanding access to cheaper diesel, helping reduce transportation expenses and keep more money in the pockets of hardworking Texans.”
“When fuel costs rise, Texans feel it everywhere from the grocery store to the price of everyday goods. Lower diesel costs mean lower expenses for the farmers, truckers and businesses that keep our economy moving,” he said in an emailed statement to The Center Square.
The announcement comes after the Trump administration’s conflict in Iran has negatively impacted the oil and gas industry in Texas and the global market.
It also comes after Abbott said gas prices would reach below $2 a gallon by the end of the summer depending on Trump administration policies. When asked about his prediction not coming true, he told ABC News This Week, “the answer to that is far more complex than one price point.”
Texas Democrats noted that on the first day of fall, Sept. 21, gas was nearly $4 a gallon in Dallas. Gasoline reached $4 a gallon for the first time in state history earlier this year.
State Rep. Gina Hinojosa, D-Austin, who is statistically tied with Abbott in the race for governor, has called on Abbott to suspend the state gas tax. “Gas prices are at a record high in Texas,” she said. “We shouldn’t wait on Washington to give Texans relief when Texans are struggling just to take their kids to and from soccer and school. Texans need relief and a governor who cares and will do something to make their lives easier.”
The Texas Constitution prohibits the governor from suspending a state gas tax. It stipulates that only the legislature may suspend laws. Ch. 418 Gov. Code also limits disaster powers to regulatory statutes and rules, excluding taxes.
Since 1991, Texas has charged a 20 cent tax per gallon on gasoline and diesel. In 2015, this tax generated more than $3.4 billion in revenue. The legislature has never increased the tax as inflation costs have skyrocketed.
By 2015, state motor fuels tax revenue hadn’t increased at the same rate as the cost of construction, the Texas A&M Transportation Institute says. In 1991, 5,000 gallons of gas yielded $1,000 of taxes collected that could buy a mile of new pavement, it says. By 2015, 5,000 gallons of gas yielded $1,000, which didn’t cover the cost to pave one mile of new pavement. Eleven years later, costs have surged even more and the tax revenue doesn’t cover the costs analyzed by the institute.
Instead of increasing the tax, the legislature allocated record funding for Texas transportation costs out of the general budget.
Abbott’s approach is different compared to other Republican governors.
On the same day that Abbott made his announcement, Georgia Gov. Brian Kemp declared a state of emergency and suspended the state motor fuel tax for 30 days, starting Tuesday. “That’s 33 cents a gallon for gasoline and 37 cents for diesel,” WABE News reported.
Four years ago, Florida Gov. Ron DeSantis and the Florida legislature reduced state gas taxes as inflation and gas prices increased under the Biden administration.
DeSantis first asked the legislature to cut state gas and fuel taxes by $1 billion in late 2021, The Center Square reported. By March 2022, the legislature first created a gas tax holiday for the month of October, reducing the tax on motor fuel by 25 cents a gallon.
Sunny
