HR10104

1) What happened: On August 13, 2026, Rep. W. Gregory Steube (R-FL) introduced HR10104, which would amend the Internal Revenue Code to eliminate penalties for the sale for use and use of dyed fuel in taxable use. Currently, dyed diesel—dyed to indicate it has not been taxed for highway use—is legally restricted to off-road applications (agriculture, construction, etc.). Using it on public roads carries significant penalties. This bill would remove those penalties, effectively allowing untaxed diesel to be used for on-road transportation. The bill is in its earliest stage: referred to the House Committee on Ways and Means, zero cosponsors, and only three actions (all on the same day). No companion bill exists in the Senate. 2) The money trail: The bill contains no direct funding authorization or appropriation. Its mechanism is a tax expenditure: by eliminating penalties, it would increase the volume of fuel sold without the federal excise tax (currently $0.244 per gallon for diesel). This would reduce revenue flowing into the Highway Trust Fund, which relies on fuel taxes. The Congressional Budget Office would likely score this as a revenue loss. The beneficiaries are fuel distributors and end users who would capture the tax savings. 3) Structural winners: Fuel distributors and refiners with large marketing and distribution networks (SUN, PSX, VLO, MPC) would see increased demand for untaxed dyed fuel, improving margins. Commercial trucking operators (JBHT, UPS, FDX) would directly benefit from lower fuel costs, which are a significant operating expense. The bill is a straightforward tax cut for diesel users. 4) Timeline: The bill has a long path. It must pass Ways and Means, then the full House, then the Senate (where it would need 60 votes to overcome a filibuster), and be signed by the President. With no cosponsors and a Republican sponsor in a narrowly divided Congress, passage is unlikely in the 119th Congress. The bill is more a statement of policy intent than a near-term market mover.