South Carolina Lawmakers Propose Major Overhaul for Road Funding and Governance

State legislators are weighing a comprehensive transportation bill designed to modernize the South Carolina Department of Transportation (SCDOT) and secure new revenue streams to manage the state’s booming population and deteriorating infrastructure.

With more vehicles on the road than ever before, the proposal seeks to address the strain on South Carolina’s 41,000 miles of state-maintained roadways without relying on an increase to the traditional gas tax.

Shifting the Financial Burden to Alternative Fuels

A central tenet of the Senate proposal involves balancing the contributions made by drivers of electric and hybrid vehicles. Currently, internal combustion vehicles generate significantly more revenue for road maintenance through fuel taxes compared to the flat registration fees paid by alternative-fuel owners.

Under the proposed guidelines, fees would be adjusted to ensure these drivers contribute a more equitable share:

  • Alternative-fuel vehicle owners: $400 every two years (increased from $120 currently)

  • Hybrid vehicle owners: $200 every two years (increased from $120 currently)

Supporters of the measure point out that electric vehicle owners currently pay roughly one-third of what traditional drivers contribute to the state’s maintenance system.

Express Lanes and Local Control

The bill also reintroduces the concept of tolls, specifically in the form of paid express lanes. Unlike traditional toll roads, this model would add new capacity to existing interstates. Drivers would have the option to pay a fee to bypass congestion in the new lanes, while the original lanes would remain free and accessible to the general public.

To streamline maintenance and reduce the administrative burden on the state, the legislation includes a “win-win” provision that would allow counties and municipalities to take ownership of certain state-owned roads. This shift would permit the SCDOT to focus its resources on high-traffic corridors used by the vast majority of the public.

Impact Fees and Budgetary Support

Another potentially contentious element of the bill involves the implementation of impact fees for developers. This would require those behind new residential or commercial growth to help cover the costs of the infrastructure improvements necessitated by their projects. While some lawmakers anticipate pushback from the development community, others argue it is a necessary step to ensure that “growth takes care of growth.”

The legislative debate comes as Governor Henry McMaster has requested at least $1.1 billion for road projects in the upcoming state budget. While the House continues its budget drafting process, none of these specific transportation provisions have been finalized.

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