Secretary of Transportation Christy Hall presented her annual “State of SCDOT” presentation to the Senate Transportation Committee on Wednesday, March 16.

Thanks to the state’s investments in prior years, there is a record level of active road work going on across the state – approximately $3.7 billion. Secretary Hall was quick to praise the private sector industry response to make this work happen and keep projects moving.

Secretary Hall provided an overview of funding mechanisms, citing the importance of the diversity of revenue streams.

The “gas tax” provides the foundation for funding roads in South Carolina, generating approximately $910 million per year. These fees are allocated to the SCDOT, County Transportation Committees (CTCs), and one cent goes to the State Transportation Infrastructure Bank (STIB).

The state is making significant progress on the 10-year plan when it comes to addressing pavements, rural road safety, bridges and interstates. However, there is still much work to be done.

SCDOT anticipates an additional $250 million in federal funding from the Infrastructure Investment & Jobs Act (IIJA) that Congress passed last year. Secretary Hall emphasized the need to be able to utilize these federal dollars and grant opportunities to the fullest extent. In order to do this, the state needs to allocate a minimum of $100 million in recurring dollars to the SCDOT.

The recurring dollars would serve as a match to federal funds and bolster the state’s 10-year plan to help address challenges that current funding levels cannot address, including traffic congestion, bridges, pavements, drainage, and more.

There is a 4:1 return ratio on federal dollars – so this is an excellent opportunity to increase the buying power of our state dollars to address statewide needs.

Recurring dollars will also help put the state in an excellent position to utilize unused federal funds from other states (upwards of $50-$100 million) when they are redistributed in the fall.

Regarding IIJA grant opportunities, Secretary Hall noted that the “Mega Bridge” discretionary grant program would be optimal for South Carolina to apply for, specifically to address two major bridges on I-95. This would be a tremendous opportunity to utilize federal dollars to help replace these aging bridges before they have problems that require them to be closed (which would be a nightmare for commutes and commerce). Applications for these bridge projects would ideally be funded with 65% state funds, with the federal government funding the remaining 35%.

Any one-time funding allocations from the state surplus would be used to accelerate projects in the pipeline, specifically interstates. Currently, legislation in the House and Senate is pending that allocates $453 million of ARPA funds to be used for project acceleration. These dollars will go towards the widening of I-26 between Charleston and Columbia. Other one-time funding allocations could be used to accelerate the widening of I-95 beginning at the Georgia border or building the first segment of I-73.

Several Senators had interests in specific projects or issues in their area; however, each praised the work of the SCDOT for their efforts to put the state’s 2017 investment to work before delving into their specific questions. (Curious as to how those 2017 investments are being spent? Click here to learn more about the trust fund.)

Senate Transportation Committee Chairman Senator Larry Grooms (R-Berkeley) thanked Secretary Hall for her leadership and the work to improve the state’s transportation system. He said in prior years, they have heard that “less means less,” but it seems as if “more means more” when it comes to available resources and ongoing progress.

We couldn’t agree with Senator Grooms more. South Carolina has a tremendous opportunity to utilize federal resources to help meet the needs of our growing state. Pair these federal dollars with an investment at the state level, and South Carolina is in a position to continue to tackle statewide needs and accelerate projects in the pipeline.

The House has already passed their version of the budget, and they invested over half a billion dollars in transportation infrastructure.

 

 

As the Senate begins their work on the FY22-23 budget, SCFOR will continue to advocate for one-time funding and, most importantly, recurring funds, which will play a critical role in the continued success of the state’s 10-year plan to keep SC moving forward.

The SC House Ways & Means Committee, chaired by Rep. Murrell Smith (R-Sumter), began full committee work on the FY22-23 appropriations bill this week, ultimately approving recurring and one-time allocations to SCDOT and the County Transportation Committees (CTCs).

Rep. Shannon Erickson (R-Beaufort) chairs the Transportation & Regulatory Subcommittee, which has jurisdiction over SCDOT. She told her colleagues that they were investing to address some of the largest issues of the greatest concern to citizens – our infrastructure.

The Ways & Means Committee adopted the subcommittee’s spending plan, which allocates over half a billion dollars to the SCDOT – pair this with the pending ARPA allocations totaling $453 million – the SCDOT could see an additional $1 billion investment this year.

Of the budget allocations adopted Wednesday, arguably the most critical component is recurring dollars. The committee approved $120 million in recurring funds to serve as the match for the federal dollars coming from the IIJA. As we have said before, recurring dollars are vital to the continued success of the state’s 10-year plan.

In addition to these recurring dollars, one-time boosts are provided for rural interstates ($176.5 million), resiliency studies ($5 million), and CTCs ($250 million). A breakdown of the budget allocations is illustrated below:

SCFOR applauds the House Ways & Means Committee for prioritizing infrastructure and allocating recurring and non-recurring dollars to accelerate projects in the pipeline and keep South Carolina’s long-term plan on track.

This week’s allocation is the first step in a very long process. The House will take the budget up on the floor the week of March 14. And don’t forget, the Senate will have their say on how state dollars should be spent.

Kudos to the House Ways & Means Committee for their work. We look forward to continuing to support infrastructure investments – especially recurring dollars – as the budget process continues.

Passage of Act 40 in 2017 put South Carolina on the road to repair, and progress continues on the state’s 10-year plan. However, our growing state still faces challenges that Act 40 was not intended to address.

Fortunately, the legislature has a unique opportunity to make additional investments this year that will enable South Carolina to accelerate projects and enhance long-term plans to improve our transportation system for all modes and users.

One-time funding allocations can be used to accelerate projects. An immediate boost of funding will allow the state to essentially buy time and advance projects of statewide significance sooner than initially planned.

The SC House and Senate are currently working on allocating the state’s $2.5 billion in American Rescue Plan (ARPA) funding. To date, bills are pending in each chamber to allocate most of the ARPA funds to improve infrastructure across the state, including transportation infrastructure. An overview of the pending recommendations in each chamber is outlined below:

SC House: $1.76 Billion

Funds will be allocated across SCDOT, Rural Infrastructure Authority (RIA), Office of Regulatory Staff (ORS), SC Office of Resiliency (SCOR), and the Department of Administration (DOA).

When it comes to SCDOT, the committee recommends allocating all of the “revenue loss” funds (approximately $453 million) to the agency. These dollars would be placed in a newly created “Transportation Infrastructure Acceleration Account” and used to expedite existing projects in the pipeline.

SC Senate: $1.75 Billion

Funds would be dispersed to the Rural Infrastructure Authority (RIA), Office of Regulatory Staff (ORS) and SCDOT. An overview of the allocations is illustrated below.

When it comes to SCDOT, the committee recommends allocating all of the “revenue loss” funds (approximately $453 million) to the agency. These dollars would be placed in a newly created “Transportation Infrastructure Acceleration Account” and used to expedite existing projects in the pipeline.

SCFOR applauds the work of the House and Senate committees and fully supports the recommendation of allocating approximately $453 million to the SCDOT to advance projects in the pipeline. 

We appreciate the willingness of legislators to make transportation infrastructure a priority. In addition to these one-time allocations, we encourage legislators to consider the need to match the additional federal funding coming to the state through the Infrastructure Investment & Jobs Act (IIJA).

South Carolina will see an additional $250 million annually courtesy of the IIJA. These funds will bolster the state’s 10-year plan by filling gaps in critical areas, including programs to address non-interstate congestion, closed and load-restricted bridges, traffic safety, and much more.

However, in order to make this enhanced 10-year plan a reality, a minimum of $100 million (recurring allocation) is necessary to ensure that the state meets match requirements and does not leave any federal funding on the table.

One-time allocations are much appreciated, and recurring allocations are critical to the continued success of the state’s long-term plan.  SCFOR encourages legislators to provide both one-time and recurring allocations this year to keep South Carolina moving forward.

The SCDOT Commission held its first meeting of the new year on Thursday, January 27, and the key item on the agenda was the election of officers. 

Commissioners elected Vice-Chairman Gene Branham (Dist. 5) to serve as Chairman, and Commissioner Tony Cox (Dist. 7) was elected Vice-Chairman. Both were elected by acclamation.

Upon election, Chairman-elect Branham said 2022 would be a challenging year with the federal dollars coming to the state, but he had complete confidence in the SCDOT team and looked forward to serving in his new role.

Vice-Chair-elect Cox thanked the Commission for allowing him to serve again. 

Commissioner Barnwell Fishburne (Dist. 6) said that it had been a privilege to serve as Chairman and he looked forward to continuing his service on the Commission. 

The SCDOT Commission held their final meeting of 2021 on Thursday, December 9, approving significant changes to improve the state’s bridge program.

Deputy Secretary for Engineering, Leland Colvin, provided an update on the results of the load rating program which assessed the condition and capacity of the state’s bridges.

He noted that the program validated SCDOT’s inspection processes. More importantly, it highlighted additional bridge replacement and rehabilitation needs across the state due to aging structures that were not designed to handle today’s loads.

As a result of the load rating program, 656 bridges were identified on primary and secondary routes.

As we previously reported, in October, the SCDOT Commission approved funding boosts to the state’s 10-year plan based on anticipated funding increases associated with the federal bipartisan infrastructure package. Commissioners approved an increase of $69 million when it comes to bridges, bringing annual investment levels to $223 million.

This additional funding is timely given the need to rehab and replace aging bridges.

The following chart illustrates the 680 load-restricted and closed bridges across the state:

You will notice that there are a lot of bridges in the upstate. This is due to the terrain, soil conditions, and age of the structures.

Ultimately, Commissioners adopted revisions to the bridge program to focus on load-restricted bridges and provide flexibility to ensure expedited delivery in certain instances. They also adopted updated project lists for inclusion in the FY21-22 Load Restricted Bridge program.

Overview of Bridge Program Revisions:

• Creates a new category specifically for Load Restricted Bridges on the Primaries and prioritizes funding to drive the number posted to zero.* (Remember, primary roads carry 47% of traffic and serve as primary arteries for commutes and commerce.)
• Using the updated data, SCDOT plans to reprioritize the Load Restricted Bridge category for the Secondaries and fit it back into the program behind the Load Restricted Primaries.*
• Any previously approved projects included in the original “465” identified in the 10-year plan that are very far along in the project development pipeline or based on the re-ranking process as part of the Load Restricted Bridge Program will continue forward.
• Rankings are based on bridge condition/load rating factor; traffic, truck traffic, detour length & route significance; and local input.
• Ranked bridge projects will be evaluated for rehabilitation versus automatic replacement.
• SCDOT plans to deploy additional strategies to address structurally deficient bridges before they are posted.
• SCDOT plans to seek federal grants for major interstate bridge projects.
• SCDOT plans to immediately expedite the repair or replacement of any closed bridge on the network that is planned to be returned to service without the requirement to rank those projects. In addition, any interstate bridge that is in immediate jeopardy of becoming load restricted should be handled in a similarly expedited fashion.

*These prioritized lists will be developed in 2-year increments to align to inspection cycles and most current data.

FY21-22 Project Lists
Load Restricted Primary & Secondary
Primaries – 122 Bridges (including 17 previously approved)
Secondaries – 41 Bridges (including nine previously approved)

Interstate & Primary Routes – 40 Bridges (all previously approved)

These lists reflect two years’ worth of projects.

SCFOR’s annual meeting was held on Tuesday, November 16, at the Hall at Senate’s End in Columbia. We welcomed nearly 140 people for an afternoon of networking, education, and a conversation on the factors driving the future of South Carolina’s infrastructure.

Many Opportunities on the Horizon for SCDOT

A big thank you to Secretary of Transportation Christy Hall, SCDOT Commission Chairman Barnwell Fishburne, and SCDOT Deputy Secretary for Finance & Administration, Justin Powell, for great presentations and insights.

Infrastructure Investment & Jobs Act (IIJA)

One thing is sure, the bipartisan infrastructure package (IIJA) offers an excellent opportunity for SC to step up and boost the state’s 10-year plan. However, Secretary Hall was very clear that in order for South Carolina to leverage the federal package to the fullest extent, additional recurring state dollars will be required. (Approximately $200 million.)

Without this matching money, over $750 million in federal funds due to SC will be left on the table, and SCDOT would not be able to tap into the billions of dollars available through new discretionary grant programs. South Carolina cannot afford to leave any money on the table!

10-Year Plan Boosts

It is crucial that the public understands how SC will put these federal dollars to work, and we applaud the leadership of SCDOT and the SCDOT Commission for being proactive about determining how to utilize this funding to fill gaps in the current program and address areas that Act 40 was not intended to address. This includes traffic congestion, additional bridge repairs, pavements, safety enhancements to roads and intersections, drainage, and rest areas, just to name a few.

American Rescue Plan Act (ARPA) Funding

When it comes to roads, the American Rescue Plan funds provide a rare opportunity to buy time on a project of statewide importance and improve a notoriously unreliable and dangerous section of interstate – specifically closing the gap on I-26 between Columbia and Charleston. The allocation of $360 million to this project would boost existing projects in the pipeline to improve the I-26/I-95 Interchange, widen nearby segments, and segments outside of Columbia.

You will recall that this project is one that has been supported by Governor Henry McMaster, as well as the use of ARPA funds and budget surplus revenues for building a segment of I-73 to connect US 501 with I-95. (An estimated $300 million is needed for this project.)

Ultimately, the legislature has the final say on these allocations.

Senate Panel on Advancements in Vehicle Technology & Electrification

Senators Tom Davis (R-Beaufort), John Scott (D-Richland), and Ross Turner (R-Greenville) joined us to talk about their work as a subcommittee and the importance of being proactive and transparent about our funding policies.

Senator Davis chairs the special Senate Critical Transportation Infrastructure Funding Modernization subcommittee. While it is clear that the shift to electric vehicles will be an evolution, the conversation will evolve into more than just transportation funding. From the location of charging stations to the sheer capacity of the power grid, policymakers at all levels of government must take a lot into consideration as they look to accommodate an electric vehicle market.

SCFOR applauded the Senators for beginning this discussion about advancements in vehicle technologies and electrification early.

Local Government Funding

We were able to have a great discussion with our friends from the Municipal Association of SC (MASC) and the SC Association of Counties (SCAC) about the importance of local funding mechanisms and how counties and cities are gearing up to put the one-time ARPA dollars to work.

Legislative ARPA Panel

Our final panel of the day focused on the ongoing discussions in respective subcommittees in the House and Senate regarding ARPA allocations.

The ARPA funds are expected to move along with the budget process, which begins in the House. Rep. Gilda Cobb-Hunter (D-Orangeburg) touted the importance of making statewide investments and ensuring that rural areas were not left behind, especially when it comes to physical infrastructure needs like water/sewer, drainage, and broadband. She also praised the widening of I-26, especially the improvements to the I-95/I-26 interchange.

Senators Thomas Alexander (R-Oconee) and Ross Turner (R-Greenville) agreed these dollars would have generational impacts, and there will be much discussion in the upcoming session over the allocations. Water and sewer improvements benefit communities of all sizes, and undoubtedly interstate improvements benefit everyone – whether they are direct users or not because we all rely on the supply chain.

We recognize that there are many entities requesting funds, and there is only so much to go around. However, we appreciate the candid discussion with this group.

It is clear that there is an emphasis on physical infrastructure, and legislators have a tough job ahead of them. So whether it’s roads or water, we can all agree these are necessary and good investments.

The Infrastructure Investment and Jobs Act (IIJA) will significantly benefit South Carolina’s transportation network.

The bill provides certainty when it comes to planning, and more importantly, significant increases in funding over the next five years. South Carolina is poised to increase federal highway funds from $733 million to over $1 billion through the IIJA. In addition to these dollars, there are also specific allocations to states that must be used for bridges and electric vehicle infrastructure.

The SCDOT Commission held a workshop and monthly meeting back in October to assess the impacts that the federal funding will have on the state and determine how the funds should be utilized to boost the state’s transportation program.  Based on the data presented, the IIJA will allow South Carolina to ramp up investments across several categories aimed at filling gaps in the existing program and improving the system for all modes and users.

The legislature’s actions in 2017 have put us on the road to repair.  However, we still face challenges that Act 40 was not intended to address. A recent report found that Act 40 has given the state the ability to make significant progress on repairs, but additional resources are needed to address the needs of our growing state.

These federal dollars offer a timely opportunity to help South Carolina boost investments to the state’s 10-year plan and address needs, especially when it comes to traffic congestion, bridge repairs, pavements, safety, drainage, and more.

In order for South Carolina to fully utilize this historic federal investment and ultimately keep the state’s 10-year plan on track, additional recurring dollars at the state level will be required to meet match requirements.

Without these additional allocations from the legislature, over $750 million in federal funds due to South Carolina will be left on the table, and SCDOT would not be able to tap into the billions of dollars available through new discretionary grant programs.  South Carolina cannot afford to leave any money on the table!

On October 27, the Senate Finance Critical Transportation Infrastructure Funding Modernization subcommittee chaired by Senator Tom Davis (R-Beaufort) met to hear testimony from the automotive industry and electric cooperatives.

Amy Tinsley, Executive Director of the SC Automotive Council (a council within the SC Manufacturers Alliance), provided the subcommittee with a thorough overview of the automotive industry’s role in South Carolina’s economy. She noted that since 2019, nationwide sales of vehicles have declined due to COVID and the semiconductor shortage. The impacts of this shortage will likely continue through 2022 and into 2023.

When it comes to electric vehicles, Tinsley said that delivery modes would be among the first to adopt along with drivers in urban areas. However, this will be something that comes into play over time.

Leighton Yates, Director of State Affairs for the Alliance for Automotive Innovation, told the subcommittee that while the majority of light-duty vehicles sold in the United States are powered by gasoline/diesel, the auto industry plans to invest $330 billion in vehicle electrification by 2023, with 130 models in the market by 2026.

Yates said the industry’s transition to electricity will be an evolution, not a revolution. However, by 2030, we should expect fewer internal combustion engines and more electric vehicles on the market – and on the roads.

Mike Couick, President & CEO of the Electric Cooperatives of South Carolina (ECSC), called the shift to electric one of the biggest challenges of his career.

“We have got to get it right,” said Couick. “This is not just the electrification of transportation; it is the electrification of the economy.”

Couick provided a thorough overview of necessary infrastructure scenarios and urged the subcommittee to allow flexibility in rate structures and focus on a cost-causation approach. Otherwise, there could be inequities in who is paying to power these electric vehicles.

While there was no discussion of transportation-specific financial impacts during Wednesday’s meeting, the testimony offered a glimpse into the magnitude of changes that come with a transition to alternative vehicles.

The subcommittee is expected to meet again, possibly in December.

Governor Henry McMaster called for the expansion of Interstate 73 (I-73) this week, specifically by investing $300 million to build six miles from I-95 to Highway 501.

This project would be funded through a combination of South Carolina’s share of American Rescue Plan (ARP) dollars and one-time money from the state’s projected $1 billion budget surplus for the fiscal year 2022.

“If we seize this moment by thinking big, being bold, and making transformative investments, I believe we can change South Carolina’s future for the better,” said Governor McMaster. “I can think of nothing more transformative than the state committing the first $300 million to kickstart this critical project. It is my hope that this commitment will serve as a catalyst for our local government partners to finalize their investment plans and will strengthen the position of our congressional delegation as they work to secure federal funding, so that we can finally make I-73 a reality.”

The announcement was made Monday during a press conference at the Myrtle Beach Chamber of Commerce. 

Governor McMaster was joined by Secretary of Transportation Christy Hall, Director of the SC Parks, Recreation & Tourism, Duane Parrish, legislators, and local government officials.

“If you think about the connection to the new port in Dillon, all of those elements come together to create a true multimodal movement of goods and people in this area. I echo the Governor’s call to invest in this very important project. We are ready to move forward with phase 1 of this project with an initial investment of $300 million to build the segment from I-95 to US 501,” said Secretary Hall.

Based on the ARP formulas, South Carolina has approximately $453 million in estimated revenue losses from the pandemic (with $156 million directly attributed to SCDOT). These monies have the most flexibility and can be used to fund road projects, among other things.

You will recall that last month Governor McMaster announced a plan to use $360 million in ARP funds to accelerate the widening of I-26 from Columbia to Charleston.

Legislators continue to deliberate the allocation of ARP funds in respective subcommittees in the House and Senate.

In September 2021, TRIP released, “Moving South Carolina Forward: Providing a Modern, Sustainable Transportation System in the Palmetto State,” a comprehensive report that examines the condition, use, safety and efficiency of South Carolina’s surface transportation system, the impact of Act 40, the importance of reauthorization of the federal surface transportation program and the challenges South Carolina faces to accommodate future transportation growth and sustain adequate funding.

The report found that SC is making considerable progress on repairs, but the state is not prepared to address demands associated with ongoing population and economic growth.

LEARN MORE ABOUT THE TRIP REPORT

SCFOR supported passage of Act 40 to help fix roads back in 2017,  and it is safe to say that these dollars are being put to work. The proof is in the transparency that we have seen when it comes to revenues, expenditures, and detailed project lists – and most importantly– the work going on across the state.

South Carolina is delivering on their 10-year plan.

As the TRIP report points out, our state is making progress to address repairs to our state-owned roads and bridges. And, in response to troubling safety statistics, they have implemented targeted programs to address the state’s deadliest roads in an effort to reduce accidents and ultimately save lives.

The legislature’s actions in 2017 have put us on the road to repair.  However, we still face challenges that Act 40 was not intended to address.

Our state’s biggest challenges are driven by our biggest opportunity – growth.

While South Carolina does a tremendous job attracting people and businesses to our state, we are not financially prepared to deal with the increasing demands associated with this growth.

As the TRIP report illustrates, an increasing population and vehicle miles traveled puts even more stress on our infrastructure. Congestion strains commutes and commerce – and in many areas in South Carolina, this is something that is not getting any better and will only get worse.

 

Additional resources are needed to address the needs of our growing state – especially when it comes to congestion, and providing adequate resources to make strategic investments to upgrade and improve the service life of our bridges, and routine maintenance.

There are two immediate funding opportunities on the horizon that would have profound impacts on our state:

• The first is passage of the bipartisan infrastructure plan pending in Congress, which provides for historic levels of investment in physical infrastructure and regulatory reforms aimed at improving project timelines.
• The second is the use of one-time funding from the American Rescue Plan funds to accelerate projects in the pipeline.

These one-time monies and increased federal funds will not resolve all of our issues – but when paired with investments at the state and local level, they will help get our state where it needs to be.

SCFOR appreciates TRIP’s work to compile this comprehensive report.  There is a lot of technical data, but one resounding theme: federal, state, and local governments must continue to be proactive about our infrastructure needs, investments, and the sustainability of funding mechanisms.

Maintaining and expanding the nation’s 4^th largest state-owned system takes continual planning and investments.

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