During the Senate Finance Committee's Budget Hearing on March 12, 2025, significant discussions centered on the future of electric vehicle (EV) registration fees and funding for local road maintenance in South Carolina.

One of the key proposals discussed was the establishment of a $200 registration fee for electric vehicles, aligning with fees in neighboring states like Georgia, Alabama, and Tennessee. This fee aims to ensure that EV owners contribute fairly to road maintenance, especially as traditional gas taxes are diminished due to the rise of electric vehicles. The committee emphasized the need for a comprehensive approach that includes a per kilowatt-hour charge for EV charging stations, particularly to capture revenue from out-of-state travelers using South Carolina roads.

Additionally, the committee addressed concerns regarding the state's C funds, which are allocated for road maintenance. The proposed budget for these funds stands at $160 million, a notable decrease compared to previous years. The committee explained that this amount is derived from a portion of the gas tax and is distributed based on population, land area, and rural road mileage. Historically, the General Assembly has supplemented these funds with additional appropriations, but the current budget reflects a more conservative approach.

The discussions highlighted the ongoing challenges of funding road infrastructure in a changing transportation landscape, particularly as electric vehicles become more prevalent. The committee's decisions will have lasting implications for both residents and travelers in South Carolina, as they seek to balance the needs of the community with the evolving demands of transportation funding. As the General Assembly prepares to make final decisions, stakeholders are urged to consider the long-term impacts of these funding strategies on the state's infrastructure.