South Carolina Lawmakers Target Transportation Funding Gap as EV Use Rises
Key Takeaways
- Lawmakers are proposing new fees on alternative fuel and hybrid vehicles to offset declining gas tax revenue.
- The bill includes a potential restructuring of SCDOT leadership and expanded funding tools such as tolls and impact fees.
- Rapid population growth is driving increased demand for roadway investment across South Carolina.
South Carolina lawmakers are advancing legislation aimed at closing a revenue gap at the South Carolina Department of Transportation (SCDOT) caused by declining gas tax collections as more drivers shift to hybrid and electric vehicles.
The bill also proposes a broad overhaul of SCDOT, including restructuring agency leadership and creating a new coordination council, according to WRDW-TV.
Lawmakers say the legislation is designed to establish new revenue streams to help address increased traffic volumes as the state’s population continues to grow rapidly, WIS News 10 reported.
Under the proposal, owners of alternative fuel vehicles would pay a $400 fee every two years, while hybrid vehicle owners would pay $200 every two years, according to WRDW-TV. Owners of these vehicles do not contribute to the state’s gas tax, WIS News 10 reported. The bill would also impose a new fee on electric vehicle charging stations, WRDW-TV reported.
The legislation includes policy updates related to toll roads and express lanes. South Carolina currently has only one toll road, located in the Upstate region, according to WRDW-TV. Some lawmakers argued that expanding express lanes could be more politically feasible than raising fuel taxes, according to WIS News 10.
Another component of the bill would establish an impact fee requiring developers to help cover the cost of transportation infrastructure improvement needed to support new growth, WIS News 10 reported.
The proposal would also allow counties and municipalities to assume control of certain state-owned roads; a move supporters say could speed up repairs and reduce bureaucratic delays at the state level. SCDOT is currently responsible for maintaining more than 41,000 miles of roadway statewide, according to WIS News 10.
Details of the legislation are still being finalized, the outlets reported.
Separately, Gov. Henry McMaster has requested that lawmakers allocate $1.1 billion for road projects in the upcoming state budget, which is currently under development.
Sources: WIS News 10, WRDW-TV