No, many states strictly forbid anyone using dyed fuel on the highway. That probably applies to 1/3 to 1/2 of the USA. I know that Louisiana and a few other states have had several exemptions over the years. But, the northeastern states are members of an area with special controls that some southern and western states don't suffer from - yet. Dyed fuel in much of the northeast is still high or medium sulfur, whereas much out west is low sulfur.
Last I checked Alaska had the most relaxed regs but that is changing.
Here in New York . . a police car is not legally considered a "motor vehicle" so I assume if there was a diesel cop car - it would have some exemptions. This is why many motor-vehicle traffic laws do not apply to police. They are not driving "motor vehicles." School buses here have to use low-sulfur diesel and never high or medium-sulfur dyed diesel.
Also, many areas in the US have gotten permsission to use dyed fuel during emergencies.
Also note that here in NY we have two dyed diesels. One is high sulfur and one is medium sulfur. Either would void warrantess in most new diesel systems.
Here's one example of what the Feds did during an emergency . . .
"WASHINGTON – The Department of the Treasury and the Internal Revenue Service, in response to the continued shortages of diesel fuel caused by Hurricanes Katrina and Rita, will extend the penalty relief period during which dyed diesel fuel can be sold for use or used on the highway. The penalty relief will apply throughout the United States.
In IR-2005-104, released Sept. 15, 2005, the IRS announced it would not impose the dyed fuel penalty when dyed diesel fuel is sold for use or used on the highway and that this relief would remain in effect through Oct. 5, 2005. Today’s announcement extends that penalty relief through Oct. 25, 2005. Any dyed diesel fuel held by retailers or users on Oct. 25, 2005, can be used on the highway after that date."
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