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DOT report: federal reauthorization, EV registration increase and reduced construction authority

South Dakota Transportation Commission · March 26, 2026
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Summary

Agency staff updated commissioners on the status of a pending federal surface-transportation bill, a state bill increasing plug-in EV registration fees, and legislative reductions to DOT construction budget authority.

An agency official briefed commissioners on the federal surface transportation reauthorization work in Congress, reporting expectations that lawmakers aim for a five-year bill and that staff are watching language that could move some discretionary funds into formula programs. "They're proposing is a 5 year bill," the agency official said, adding that the department is watching the bill language closely to assess impacts on DOT formula funding and discretionary programs.

The official also told the Commission the Legislature signed House Bill 1227 to increase the annual registration fee for plug-in electric vehicles (not hybrids) from $50 to $100; staff estimated roughly 4,400 vehicles in the category, producing about $200,000 a year. On the state budget side, the official said legislators reduced DOT's construction budget authority by $20 million and the railroad construction line by $10 million, noting staff may request additional authority in a future session if needed.

Commissioners asked follow-up questions about how the reductions would affect STIP programming and whether unutilized budget authority could be revisited. Staff said they monitor revenues and obligations closely and will seek amendments if budget authority shortfalls threaten project delivery.