PHOENIX (AZFamily) — Gov. Katie Hobbs signed an executive order Tuesday declaring a state of emergency over diesel market disruptions and temporarily easing fuel and trucking rules for Arizona’s agricultural industry, an effort she says will help blunt rising grocery prices.
The executive order allows farm-related vehicles to use untaxed, red-dyed diesel fuel on public highways and raises the weight limit for trucks hauling agricultural goods on non-interstate highways to 90,800 pounds, up from the standard 80,000-pound federal limit.
The order remains in effect through Dec. 31, 2026, or until it is rescinded.
Hobbs tied the move to turmoil in the Middle East, citing attacks on oil infrastructure and reduced shipping through the Strait of Hormuz as drivers of unstable diesel prices that are squeezing farmers, ranchers and grocery shoppers alike.
“Arizonans are feeling the squeeze at the grocery store, and we are stepping up to deliver relief,” Hobbs said in a statement. “By cutting taxes and regulations for our farmers and ranchers, we’re lowering the cost of doing business and helping Arizona families put food on the table in the face of skyrocketing costs due to the war in Iran.”
What the order doesRed-dyed diesel on highways: State agencies are directed to deprioritize enforcement against the on-highway use of red-dyed diesel — normally reserved for off-road, untaxed agricultural use — for vehicles solely engaged in agricultural operations or the transport of farm products, goods and equipment.Heavier loads, no permit fee: The Arizona Department of Transportation will treat loads between 80,001 and 90,800 pounds as “nonreducible,” allowing qualifying agricultural haulers to obtain overweight permits on non-interstate highways at no cost.Federal ask: The order also calls on the federal government to let trucks up to 90,800 pounds travel freely on interstates, not just state highways.
The order follows an action by President Trump expanding access to red-dyed diesel nationally through the end of the year, and Hobbs’ order notes that federal relief “is not effective without concurrent state action.”
Industry reaction
Agricultural groups welcomed the move. John Boelts, president of the Arizona Farm Bureau, said diesel is “one of the largest costs for the families who grow and move Arizona’s food and fiber.”
Dave Puglia, president and CEO of Western Growers, said the change would help growers “mitigate high transportation costs, improve efficiency, and protect the quality of perishable crops” during harvest.
Cory Mellon of the Yuma Fresh Vegetable Association and Mellon Farms called fuel “one of the largest and most immediate drivers” of rising production costs, while Tom Davis of the Agribusiness & Water Council of Arizona said the changes would help growers “more efficiently and economically deliver healthy food to our state and our nation.”
Arizona joins several other states that have recently taken similar executive action on dyed diesel rules in response to fuel-cost pressures tied to the conflict involving Iran.
Read the full executive order here.
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