State of SCDOT Focuses on Progress, Filling Gaps in Programs

Secretary of Transportation Christy Hall presented the 2023 State of SCDOT to the Senate Transportation Committee this week. She emphasized the state's continued growth, infrastructure investments to date, and the need to continue working to close remaining program gaps. 

Secretary Hall touted the ongoing progress from the state's infrastructure investment in 2017 and more recent investments at the federal and state levels.

The state continues an aggressive interstate program, and Hall noted that 46 miles had been completed, 50 miles are under construction, and over 250 miles are currently in planning and design. 

Secretary Hall emphasized the importance of starting early with the planning process because waiting until money becomes available to begin a project is usually too late. SCDOT continues to work to get projects teed up (across all programs) so they are ready to advance when dollars become available. 

Senator Chip Campsen (R-Charleston) inquired about the status of I-95 and asserted that portions of I-95 had to be "the worst roadbed in the entire state." He added that I-95 was not the best welcome mat for drivers entering South Carolina from Georgia. 

Secretary Hall did not disagree. She noted that portions of I-95 had significant issues, especially with shoulder deterioration. She added that the interstate program is being implemented based on resources and reminded the committee that Georgia had twice the budget and half the responsibility. 

As we have previously reported, a key request of SCDOT for the FY23-24 budget is for bridges. Secretary Hall discussed the need for a $1 billion investment over five years for the state's bridge program. She suggested that these funds be phased in ($200 million/year) to allow the agency and industry to plan and deliver properly. 

Because many of the state's bridges that carry the majority of traffic are aging and reaching time for repair or replacement, Hall said this investment would allow the state to "get ahead of a major problem." 

Senate Transportation Committee Chairman Larry Grooms (R-Berkeley) said that the state had come a long way in recent years regarding improvements, praising the work of SCDOT and industry to advance projects and plans. However, he said there is still much work to be done to get the transportation network where it needs to be.  

Chairman Grooms touted the state's investments in infrastructure and said, based on the progress to date, the same rule still applies today, "you get more with more."  

We couldn't agree more with Chairman Grooms because transportation infrastructure plays a critical role in serving the people and businesses who already call South Carolina home, as well as those we seek to attract in the future. 

If we learned anything from 2017, it's that we can't afford to wait. South Carolina is doing a great job of putting dollars to work. Still, we must continue to assess the buying power of dedicated funding mechanisms and allocate general fund dollars when available. The legislature has done a tremendous job of making infrastructure investments an ongoing priority. Our mission is to ensure they remain proactive about addressing infrastructure needs to keep South Carolina moving forward. 

View Secretary Hall's 2023 State of SCDOT Presentation here. 

"Yankee Tax" Bill Moves Forward

The Senate Finance Property Tax Subcommittee chaired by Senator Danny Verdin (R-Laurens) gave a favorable report to S.208, legislation sponsored by Senator Stephen Goldfinch (R-Georgetown), which would allow counties to seek voter approval via referendum to impose a $250 driver's license fee on new residents from out of state. 

You will recall that Act 40 (2017) imposed a $250 fee on new residents when they move to South Carolina and transfer a vehicle here. If this bill passes, an additional $250 fee could be imposed at the local level and used for education, green space, or infrastructure. 

Senator Verdin stated he usually finds new taxes/fees bothersome, but this bill was "provocative," and how to pay for infrastructure isn't something the legislature can shy away from. "We have to consider who shall pay for necessary infrastructure: those of us that are here or those that are coming."

There was little discussion over how the fee would be administered. Still, amendments will likely need to be adopted as the bill moves forward to clarify that the county would be responsible for collecting the fee instead of the SC Department of Motor Vehicles (DMV). 

The bill now moves to the full Finance Committee for consideration. 

Senate Passes SCDOT Contract Bill

By a vote of 42-0, Senators passed legislation dealing with SCDOT construction contract extensions (S.361) on Wednesday. As we have previously reported, the bill would allow the Secretary of Transportation to approve extensions to contracts for additional work and have those extensions ratified by the SCDOT Commission at a later date. This change allows SCDOT to treat all extensions the same, no matter the value. The bill has been referred to the House Education & Public Works Committee, which will have the House companion bill (H.3747) up in full committee soon. 

McMaster Submits Appointee for SCDOT Commission

Governor Henry McMaster has appointed TJ Johnson to the SCDOT Commission to fill the vacant seat in the First Congressional District. You will recall that this seat was formerly held by Robby Robbins, who resigned from his Commission term early (Feb. 2022) to successfully run in a special election for the SC House of Representatives. 

The appointment was read across in the House on Tuesday and referred to members of the delegation for consideration. If House and Senate members of the First Congressional Delegation approve, Mr. Johnson will serve the remainder of the term through February 15, 2024. 

Mr. Johnson owns a series of car dealerships across the state and resides in Charleston.

Governor McMaster still has two appointments to make to the SCDOT Commission, which remain vacant after At-Large Commissioners Nancy Whitworth and TJ McLawhorn stepped down in 2022. 

SC Agencies Continue EV Discussions, Hear From Utilities

The SC Interagency Electric Vehicle Working Group, tasked with creating a comprehensive plan for the strategic deployment of electric vehicle (EV) infrastructure, met last Friday afternoon to handle some administrative items and hear from representatives from the Electric Cooperatives of SC and Lockhart Power Company. 

Members of the working group elected SCDOT Chief of Staff, Justin Powell, to serve as Chairman of the group. The group also welcomed a new member, Dr. Tim Hardee, President of the SC Technical College System. 

Rob Bedenbaugh, SCDOT Director of Engineering Support,  provided an overview of EV terminology and the capabilities of various types of charging infrastructure. The SC Department of Commerce (DOC) also unveiled a new website to attract EV manufacturers and suppliers to South Carolina – www.scpowersev.com. 

Mike Smith, VP of business and technology strategy for the Electric Cooperatives of SC (ECSC), provided an overview of the state’s electric cooperatives, which serve roughly 2 million South Carolinians, especially in rural areas. 

Smith noted that battery configuration impacts charging, and 80% of EV charging will occur at home. Therefore, NEVI sites will be addressing that other 20%, and time is critical because these facilities need to be able to provide quick charges. 

He added that the ECSC were also on a learning curve, especially with rate challenges and how to deal with sites with little energy and large peaks. In many instances, these charging sites must be attached to something to attract drivers above and beyond a charging station. 

He noted that Tesla’s technology of allowing drivers to see where Tesla charging stations were located and the availability of each was also a game changer because, as of right now, charging infrastructure is less attractive for non-Tesla owners. (Smith knew this firsthand because he owns a Volvo EV, and his wife drives a Tesla.)

Bryan Stone, President of Lockhart Power, provided a private utility perspective for the group. Stone said the state is the necessary player to get the Level 3 charging infrastructure in place, and NEVI funding is an economic driver. 

He noted that the cost to extend infrastructure to utilities should come from outside sources, and there are consequences of placing charging infrastructure near interstates because it will put the utility burden on the backs of those who live nearby. 

Whether it’s the availability of energy or difficulty procuring transformers due to economic strains, at this time, there seems to be more concerns than solutions regarding the best way to implement statewide EV charging infrastructure. Based on the complexity of these issues alone, we expect to hear more advice and recommendations from utilities as this working group continues. And remember, there will also be the formation of a joint legislative committee to delve into the electrification of transportation specifically. Lots to talk about, so stay tuned!