South Carolina lawmakers are considering adding toll lanes to highways as a strategy to reduce traffic and raise revenue for road projects, amid rising construction costs and population growth.
At a state Senate subcommittee meeting Thursday, Secretary of Transportation Justin Powell outlined a proposal to add new toll lanes—called “choice lanes”—that would allow drivers to pay to avoid congestion. Existing highway lanes would remain free. The measure is part of a bill introduced this week by Senate Transportation Committee Chair Larry Grooms.
Under federal law, tolls cannot be added to existing lanes built with federal funds, and South Carolina law prohibits tolls on any roads unless the Legislature provides explicit approval. Any toll revenue would be used solely for the construction or upkeep of the road where the toll is collected.
“This would be a very important item for us to do,” Powell told the panel. No vote was taken.
South Carolina currently has one active toll road: a 16-mile stretch of Interstate 185 near Greenville. A toll road on Hilton Head Island stopped charging in 2021 after construction costs were repaid.
Powell said toll lanes could allow the state to advance infrastructure projects more quickly by supplementing other funding sources. Construction costs have increased significantly in recent years, limiting the effectiveness of the state gas tax, which last rose under a 2017 law that gradually increased it to 28 cents per gallon.
Gov. Henry McMaster has proposed allocating an additional $1.1 billion in his 2024 executive budget to support road and bridge construction in response to inflation.
Future choice lanes could be added to congested corridors such as Interstate 526 and Interstate 26 near Charleston, Powell said. A proposed widening of I-526 could cost $7 billion, though details have not been released. Tolls, he said, could reduce travel times more effectively and at lower cost to the state.
Charleston is the state’s most congested region, Powell said, but other fast-growing areas like Greenville and Myrtle Beach may also be considered.
“Toll roads are never popular,” said Sen. Ed Sutton, a Democrat from Charleston. “But you’ve got to pay for roads somehow.”
Raising the gas tax further is seen as unlikely after the lengthy legislative debate that preceded the 2017 increase. Local sales tax measures for road funding have also failed at the ballot box.
The legislation also proposes a new development fee to address population-driven traffic increases: $2,500 per single-family home in new subdivisions or $1,500 per multi-family unit. Proceeds would fund traffic-related projects in the same county.
“I’m open to ideas and solutions that can deal with that issue without burdening the existing taxpayer with that growth,” Powell said.
The bill includes a proposed 4.5 cent-per-kilowatt-hour fee on electric vehicle charging at public stations. About 32,000 electric vehicles are registered in the state, though more pass through during travel, Powell said.