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House committee hears DOT reform bill that would speed projects through NEPA assignment, toll and PPP authority
Summary
The Revenue Policy Subcommittee received testimony on House Bill 5071, a DOT reform package that would allow the state to assume NEPA environmental reviews, modernize toll law for choice/express lanes, authorize public-private partnerships and impose a 180‑day municipal consent clock; lawmakers raised permitting, impact-fee and affordability concerns. No vote was taken and the committee set a follow-up hearing.
The Revenue Policy Subcommittee of the House Ways and Means Committee heard testimony on House Bill 5071 on transportation reform, a package of changes DOT officials say would accelerate project delivery and better align funding with growth.
Chairman Bannister opened the meeting and said the committee planned to take testimony from the Department of Transportation, accept public comment and hold an additional hearing next week to consider amendments. Director Powell of the South Carolina Department of Transportation outlined why the changes are needed, saying the agency has implemented the 2017 "fix-it-first" approach but that inflation and rapid population growth have reduced buying power and increased demands on the system.
Powell described several elements of the bill. On environmental review, the legislation would authorize the state to pursue NEPA assignment — stepping into the federal NEPA role for federally funded projects — which he said can save "months to years" in review time but would shift legal challenges into the federal court system, requiring the state and attorney general to defend approvals. "What's known as NEPA assignment, which is the National Environmental Policy Act," Powell told the committee.
The bill would modernize the state's toll statute to allow contemporary options such as optional choice or express lanes, where drivers can pay to use an express lane while free lanes remain available. Powell said studies and examples from neighboring states indicate such lanes can improve travel times and reliability. The legislation also would allow public‑private partnerships (private design, build, finance, operate and maintain arrangements) for some projects, and add procurement methods such as phase design‑build and construction manager/general contractor (CMGC) to DOT's toolbox.
To address project delays caused by slow local approvals, the bill would leave municipal consent in place but require an up‑or‑down decision within 180 days, Powell said. He also proposed a coordinating council to align state transportation agencies and adding the DOT secretary to the State Infrastructure Bank for continuity.
On revenue, Powell showed the state's existing electric‑vehicle registration fee of $120 every two years (about $60 per year) and said the bill would adjust registration to ensure EV drivers "pay their fair share" as gas tax receipts decline. He noted Governor McMaster's executive budget proposal for additional interstate and bridge funding and said DOT's pipeline could absorb more funding.
Committee members pressed DOT on permitting backlogs and impact‑fee effects. Representative Lehi asked for an amendment to reduce permitting times by 20% in fast‑growing districts, saying permit review staff are strained in counties such as Horry. Powell acknowledged encroachment‑permit backlogs, described an upcoming permitting software replacement and a Six Sigma review that eliminated several permit types, and offered to provide the committee with numbers on additional permit reviewers.
Representative Crawford emphasized the bill's voluntary elements and said impact fees had been removed from the current draft so the ad hoc committee could consider broader updates to the state impact‑fee statute. "This is a voluntary program, not a mandatory," Crawford said; Powell confirmed that point.
Members asked for examples of municipal delays. Powell cited a North Myrtle Beach safety project where Atlantic Beach withheld consent for a short segment, forcing DOT to proceed without that half‑mile portion, and said a locally sponsored Hilton Head widening added years to the timeline. He told the committee the department remains debt‑free after paying off prior bonds in 2023 but said generational projects such as the I‑526 Charleston reconstruction (Powell gave an illustrative estimate of $7 billion) would likely require borrowing.
No formal votes or motions were taken. The committee wrapped up with plans to reconvene next week for further testimony and possible amendments.
