EPA has extended the highway diesel sulfur waiver through Oct. 25. The initial waiver was announced in late August after Hurricane Katrina caused severe disruptions in the supply of diesel fuel after it struck the Louisiana and Mississippi Gulf Coasts.

Refiners can distribute high sulfur diesel fuel for highway use until that date in the following states: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, New Mexico, North Carolina, South Carolina, Tennessee, Texas and Virginia. Vehicles that have been fueled with waved fuel may be operated in any state.

High sulfur fuel still in the system past Oct. 25 can still be sold. Retailers must make the transition by December.

The diesel fuel waiver includes a waiver of the dye requirement for high-sulfur diesel fuel so that high- and low-sulfur diesel fuel may be more easily distributed as highway fuel.

For more information on EPA’s requirements and waiver explanations, go to: http://www.epa.gov/compliance/katrina/waiver/index.html.

The Internal Revenue Service (IRS) has also extended to Oct. 25 the penalty relief period in which dyed diesel fuel can be sold or used on the highway. The IRS will not impose the dyed fuel penalty when dyed diesel fuel is sold for use or used on the highway through that date, however any applicable taxes must be paid.

For more information on the waiver, dyeing restrictions and applicable taxes, go to: http://www.irs.gov/irs/article/0,,id=148123,00.html and http://www.irs.gov/newsroom/article/0,,id=147221,00.html.