Energy

EPA Extends Emergency Diesel Waiver For Texas As Fuel Supply Crisis Drags On

Unsplash/Rixt van der Linde

The Trump administration is extending emergency diesel relief in Texas as soaring fuel prices and strained supplies push states to take extraordinary measures to keep trucks moving.

The Environmental Protection Agency (EPA) extended Texas’ emergency diesel waiver Tuesday, allowing certain older vehicles and equipment to use higher-sulfur fuel through Nov. 13. The 20-day extension follows an initial waiver granted October 5 at Republican Texas Gov. Greg Abbott’s request.

“EPA Administrator Lee Zeldin is doing what he can to provide relief to American consumers, but emergency waivers cannot replace the refining capacity we’ve lost after decades of politicians pursuing so-called climate agendas,” Jason Isaac, CEO of the American Energy Institute told the Daily Caller News Foundation. “California has driven refineries out of business, while European countries pursuing Net Zero policies have watched their refining capacity decline.”

National distillate inventories were 11% below their five-year average as of Oct. 9, while refineries were operating at 93.5% capacity, according to the EPA’s Oct. 20 letter.

“It is EPA’s intention to issue new waivers effectively extending (renewing) these waivers until such time as the extreme and unusual fuel supply circumstances described in this action are no longer present,” EPA Administrator Lee Zeldin wrote.

The waiver temporarily relaxes federal sulfur restrictions, allowing refiners to produce diesel containing up to 500 parts per million of sulfur instead of the usual 15 parts per million. The exemption applies to certain older engines, while newer vehicles must continue using ultra-low sulfur diesel to prevent damage to emissions-control equipment.

Texas isn’t the only state scrambling for relief. Republican West Virginia Gov. Patrick Morrisey declared a 60-day statewide emergency Tuesday, temporarily easing restrictions on highway use of red-dyed diesel, fuel typically reserved for agricultural and off-road equipment.

“Now farmers, truckers, businesses, and families are paying the price for policies that discouraged investment in the fuels our economy depends on,” Isaac said. “These waivers may provide temporary relief, but they won’t solve the underlying supply problem. “

The EPA gave the DCNF a receipt for a request. Abbott’s office did not immediately respond to the DCNF’s request for comment.

“Transportation costs affect the prices we pay at the grocery store and throughout our economy,” Morrisey said in a press release. “Today, we’re giving businesses and citizens an opportunity to lower those costs, so that savings will benefit West Virginia families.”

The emergency measures follow months of turmoil in global oil markets after Iranian attacks on tankers and energy infrastructure disrupted Middle Eastern supplies as a result of the Iran War. Despite the Strait of Hormuz reopening in September, the Energy Information Administration (EIA) does not expect most disrupted crude production to recover until early 2027, according to the EPA.

America’s shrinking refining capacity has further strained supplies, with the nation losing approximately 490,000 barrels per day in operable capacity between January 2019 and December 2025, the EPA reported.

“Given this high utilization rate, refineries have minimal ability to produce more refined products, such as ULSD, in the event of a supply disruption,” the agency stated.

“The bill for decades of climate alarmism is finally coming due, and Americans are paying it every time they fill their tanks or buy groceries,” Isaac said. “We need more refineries, fewer regulatory barriers, and an end to policies that sacrifice American energy security for political emissions targets.”