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Panel weighs higher EV/hybrid registration fees and a per‑kWh charging fee to stabilize highway revenues
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Summary
The draft proposes biannual alternative‑fuel vehicle fees ($400 for EVs, $200 for hybrids), a 4.5¢/kWh fee on publicly accessible charging, and indexing beginning Oct. 1, 2030; department staff said the measures would generate revenue comparable to gasoline taxes and estimated $10–15M from charging fees.
Committee staff presented new alternative‑fuel user fees to address declining gas‑tax revenue as more vehicles adopt non‑gas propulsion. The draft sets biannual registration fees of $400 for battery electric vehicles and $200 for hybrids, with increases tied to vehicle gross weight classes (10% increases for heavy classes) and indexing starting Oct. 1, 2030. Emma said collected fees would be credited to the State Highway Fund.
Members questioned the biannual structure (South Carolina currently uses biannual registration) and whether the fees should be annual instead. Secretary Powell said changing to annual registration creates a one‑year revenue dip that could affect the State Infrastructure Bank and bond covenants; he estimated the short‑term revenue interruption at roughly $17M for DOT and $40M for the SIB in his recollection of prior analyses.
The draft also imposes a 4.5¢ per kilowatt hour fee on electricity consumed at publicly accessible EV charging stations, indexed beginning Oct. 2030; department staff estimated that fee would yield roughly $10–15 million annually. Committee members clarified free public charging likely is not a taxable transaction under the draft; the fee targets charging providers that sell electricity at publicly accessible stations.
Lawmakers asked staff to refine timing, indexing, and weight‑class application and to review bond/lending impacts if registration timing or indexing is changed. No votes were taken; staff were asked to provide the underlying revenue data to the committee.
