Contact: Noah Barnes, Electrification Coalition
noah@electrification.org, (202) 461-2371
Columbia, S.C. — As South Carolina legislators consider a significant increase in state fees on electric vehicles (EVs), the Electrification Coalition urges policymakers to look beyond short-term revenue goals and consider the long-term consequences for national security, economic competitiveness, and the state’s growing clean transportation economy.
Lawmakers are debating a major transportation bill, S.831, that would raise the biennial road user fee on EVs from $120 to $400. The bill would also add a new user fee of 4.5 cents per kilowatt-hour on electricity consumed at publicly accessible EV charging stations. This proposal imposes significant additional costs on EV drivers without increasing the state gasoline tax. While maintaining South Carolina’s roads is essential, the EV tax is punitive, disincentivizes EV adoption, and often exceeds the gas taxes paid by conventional cars.
“South Carolina is a key hub within the American ‘battery belt’—a string of Southeastern states booming with EV and battery manufacturing investments,” said EC Executive Director Ben Prochazka. “The state has worked incredibly hard to develop a robust EV industry that includes vehicle and battery manufacturing, as well as research through Clemson University. However, adding a $400 biennial fee and a new tax on charging would make South Carolina one of the most expensive states to drive electric, harming jobs and consumers.”
Electric vehicles are vital to U.S. economic and national security. They create hundreds of thousands of American jobs, ensure the U.S. auto industry remains competitive with Chinese automakers, diversify how we power transportation, and drive demand for critical mineral and battery supply chains, which are essential to U.S. defense.
The proposed fee increase also runs counter to America’s efforts to compete with China in the global race to build a domestic EV and battery supply chain. China currently dominates much of the EV market and the production of critical minerals. South Carolina stands to lose economically if it discourages EVs. From battery manufacturing to the creation and maintenance of charging stations, South Carolina is a hub for EV manufacturing companies, with nearly 15,000 jobs announced in the state.
Additionally, because South Carolina has no crude oil reserves or production, all of the oil used for transportation is imported from other states or countries. Diversifying how we power transportation and utilizing the state’s electricity generation will keep more energy dollars within South Carolina.
The Electrification Coalition urges South Carolina lawmakers to pursue fair, balanced solutions for infrastructure funding that support, rather than stall, transportation electrification and a more secure energy future.
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About the Electrification Coalition: The Electrification Coalition is a nonpartisan, nonprofit organization that promotes policies and actions to facilitate the widespread adoption of plug-in electric vehicles (EVs) on a mass scale to overcome the economic, public health and national security challenges that stem from America’s dependence on oil. ElectrificationCoalition.org