TORONTO — Ontario has temporarily eased enforcement of coloured fuel — or red-dyed diesel — for trucks in the province from the US.

Red-dyed diesel is a contravention of the Fuel Tax Act in Ontario. Generally the presence of dye in fuel is an indication that tax has not been accounted for and the fuel can only be used for non-taxable purposes, not commercial activities.

However, as a result of Hurricanes Katrina and Rita in the Gulf Coasts — and the lack of fuel availability that followed — the US Environmental Protection Agency and the Internal Revenue Service granted conditional waivers regarding the use of coloured fuel for on-road vehicles in the US until Dec. 10, 2005.

US red diesel gets green
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Given the proximity with the US and the amount of trade between the two countries, the Ontario Ministry of Finance has agreed to apply the same waivers on coloured fuel for truckers who fill up with the stuff south of the border.

Ministry spokesperson Manuel Alas-Sevillano confirmed to TodaysTrucking.com that the province expects that trucks coming to Ontario from the US may have coloured fuel in their tanks when they enter Ontario jurisdiction. Given the circumstances, says Alas-Sevillano, the Ministry of Finance has issued an administrative concession that’s applicable to any truck found to be operating in Ontario on coloured fuel regardless of its home base as long as they meet the same conditions imposed by the EPA in the US.

If conditions are met, charges will not be laid, or if laid, will not be pursued, Sevillano says.

These conditions are:

That the fuel was purchased in the US and the conditions on the EPA and IRS waiver were met.

— That operator of the vehicle provides proof of the location and date of purchase and evidence that the US federal fuel tax of 24.4 cents per gallon was paid on the purchase.

— Where the operator is unable to produce proof at the time of inspection, a Certificate of Offence will be issued for the violation. If within four calendar days of the issuance of the offence, the operator provides the above documentary evidence, the offence will not be filed in court.

How long will these changes remain in place?

In the US, the EPA recognizes that many retailers will still have plenty of dyed fuel available for sale beyond Dec. 10. These retailers will be allowed to sell this fuel until their supply is depleted.

Therefore, says Alas-Sevillano, the Ontario government’s administrative concession to trucks operators will be available as long as the individual provides the appropriate documentation of proof of purchase to meet the conditions mentioned above.