Are you considering an offroad diesel car? Then be careful. You need to understand the law or you may have to pay high fines and penalties for tax evasion at the state level. If you are caught using red diesel on public roads you can be in big trouble.
So how should you navigate the complex XTP diesel & offroad laws? And how can you make them work for you so you pay minimum taxes? What setup is right for you.
Here’s everything you need to know about DK diesel performance laws.
Red Fuel Tax
Since red fuel is tax-free in the same way as regular pumped diesel fuel, you cannot use it on public roads. In fact, what constitutes a car has nothing to do with the law on fuel in the RFP. Fuel intended for off-road use is tax-exempt.
For some vehicles, the use of colored diesel on the road is 100% legal, such as agricultural vehicles. However, you should do the basic checks to establish whether an exception applies to your vehicle.
Always check in with an expert or someone at local or state level government before using colored diesel.
The United States requires diesel fuel to be colored red if it is a fuel with high sulfur content. Red dye is added to off-road diesel (diesel) to indicate that no tax has been paid. Red indicates that the fuel is not subject to as high local (state) and/or federal taxes as road (clean) fuel.
Lowering Your Tax Rate
Retailers sell Red diesel at a significant discount, which is another way of saying that its tax rate is much lower than the fuel you find at your local gas station.
Red diesel is chemically indistinguishable from any other fuel, so it can be used as a heating fuel and generator in your truck. However, the product is suitable for agriculture, construction, and other off-road applications.
SUV Engines
The biggest difference between the two is that we use red fuel for SUV engines, as well as tractors and bulldozers used on farms and construction sites.
Red diesel is a fuel used in automobiles and SUVs in various industries including agriculture and construction. It is called red dye, red fuel, agricultural fuel, off-road diesel, and even cherry juice, and it is similar to low sulfur diesel (ULSD) you can find at your local gas station.
This means that the price for off road diesel is lower than other fuels if you buy it for off-road use. Since off-road diesel is not used in road vehicles, it is tax-free and therefore cheaper than off-road diesel.
There is no performance difference between the two types of diesel, but it is cheaper for companies using SUVs to use off-road diesel.
Compared To Road Diesel
Currently, road diesel must be low-sulfur; at least in some jurisdictions, off-road vehicles may still contain a lot of sulfur (and therefore cheaper than the tax difference, because most high-sulfur feedstocks require fewer new refineries.
The sulfur content it produces in general, however, sulfur plays an important role as a lubricant in diesel engines, and it is difficult for automakers to transition to ULSD fuel (for example, please note that diesel engines produced today are designed to be in ULSD though there is a debate/argument about whether fuel surcharges are required for today’s non-road engines.
Changes In The Law
After December 1, 2014, all diesel produced and imported for highways, SUVs, locomotives, and marine engines must be Ultra-low-sulfur diesel (ULSD). In 2007 newer highway diesel production engines must be equipped with advanced emission control systems that require new fuels.
According to the law, all diesel (road and off-road) sold in the united states today is now ultra-low sulfur diesel (ULSD).
This new regulation applies to all diesel fuels, diesel fuel additives, and diesel distillate fuels used on the road, such as kerosene, but has not yet been applied to railway locomotives, ships, or off-road applications.
In response to this change, ASTM international adopted the lubricant specification defined in ASTM d975 for all diesel fuels, which came into effect on January 1, 2005.
Over time, these requirements were gradually introduced. Starting with the sale of diesel for road vehicles, it may include all diesel for off-road vehicles.
California Specific Laws
The California Air Resources Board (CARB) passed the California Code of Regulations (CCR) Article 13 Section 2449 Diesel Off-Road Vehicle (SUV) regulations in July 2007 and requires fleet engines equipped with diesel off-road vehicles to reduce NOx and pm2.5 emissions while meeting the fleet average NOx and pm standards.
They soon aim to achieve more NOx emissions reductions and eliminate reckless diesel performance than the government’s regulation of off-road vehicle use.
The plan is to provide financial assistance to a large number of vehicles to purchase commercially available high-power, low-emission engines to reduce nitrogen oxide emissions from off-road diesel vehicles in use in the short term. This is more appropriate than a global offroad and diesel program.
Other sources of funding may soon be available and added to the plan.
Offroad Diesel: The Laws And Regulations Vary
The laws and regulations on offroad diesel do differ despite what many people think. They also vary in some states such as California.
If you are thinking of using offroad diesel or you want to do some offroad driving then it’s important to abide by the law. You need to understand any relevant regulations, particularly regarding red diesel.
For more information be sure to check out the other articles on our site.