South Carolina is actively encouraging the adoption of alternative fuels and advanced vehicle technologies through a range of incentives and supportive legislation. This guide, brought to you by Car Repair Online experts, dives into the current South Carolina laws, incentives, regulations, and funding opportunities designed to promote cleaner transportation and improve air quality within the state.
Explore South Carolina State Incentives for Clean Vehicles
South Carolina offers several state-level incentives to make alternative fuel vehicles and infrastructure more accessible and affordable. Here’s a breakdown of the key programs:
South Carolina’s Commitment to Electric Vehicle Infrastructure: NEVI Planning
The National Electric Vehicle Infrastructure (NEVI) Formula Program, spearheaded by the U.S. Department of Transportation (DOT), mandates that each state develops a plan for utilizing NEVI funds. The South Carolina Department of Transportation (SCDOT) is responsible for creating and submitting an annual EV Infrastructure Deployment Plan to both the DOT and the Joint Office of Energy and Transportation. This plan outlines how South Carolina will strategically invest NEVI funds to build out a robust EV charging network across the state. These plans must adhere to strict NEVI guidelines to ensure effective and efficient infrastructure development.
For detailed information on South Carolina’s NEVI planning initiatives, you can visit the SCDOT Electric Vehicle Charging Plan website. Furthermore, South Carolina’s comprehensive NEVI plan is publicly accessible on the Joint Office State Plans for EV Charging website.
Biofuels Production Tax Credit: Supporting Local Fuel Production
South Carolina incentivizes the production of biofuels within the state through a Biofuels Production Tax Credit. Since January 1, 2017, facilities producing biodiesel and ethanol in South Carolina may be eligible for a significant income tax credit. This credit amounts to $0.075 per gallon for newly produced biodiesel and ethanol. Qualified facilities can claim this credit on up to 10 million gallons of biofuel production annually, for a period of up to 36 consecutive months. Specific terms and conditions apply to this tax credit.
For more in-depth information regarding eligibility and application details, please refer to the South Carolina Energy Office Funding website.
Battery Manufacturing Tax Incentive: Boosting Renewable Energy Manufacturing
To encourage investment in renewable energy manufacturing, South Carolina offers a Battery Manufacturing Tax Incentive. This incentive reduces the taxable fair market value of manufacturing machinery and equipment by 20% of the original cost for qualifying renewable energy facilities. This applies specifically to facilities manufacturing batteries for hybrid electric vehicles, fuel cell vehicles, and other advanced motor vehicles certified by the South Carolina Energy Office. To qualify, facilities must make a substantial investment of at least $100 million in the project and create a minimum of 200 new full-time jobs. These positions must offer an average compensation of at least 150% of South Carolina’s annual per capita income, or 150% of the county’s per capita income where the facility is located (whichever is less). Additional requirements and restrictions are in place.
For precise legal definitions and further details, consult the South Carolina Code of Laws 12-10-30, 12-10-80, 12-15-20, 12-15-30, 12-37-930.
Alternative Fueling Infrastructure Tax Credit: Investing in Clean Fuel Infrastructure
South Carolina provides an Alternative Fueling Infrastructure Tax Credit to encourage the development of infrastructure for alternative fuels. This income tax credit covers 25% of the costs associated with purchasing, constructing, and installing qualified alternative fueling infrastructure. This includes equipment essential for distributing, dispensing, or storing alternative fuels such as natural gas and propane. The tax credit is claimed over three years in equal installments, starting in the taxable year the infrastructure becomes operational. Any unused credits can be carried forward for up to ten succeeding taxable years. Taxpayers also have the option to transfer these tax credits to eligible agencies after notifying the South Carolina Department of Revenue. It’s important to note that this tax credit is set to expire on January 1, 2026.
For complete legal details, see the South Carolina Code of Laws 12-28-110, 12-37-2820, and 12-6-3695.
Biofuels Distribution Infrastructure Tax Credit: Expanding Biofuel Availability
To further support the biofuel industry, South Carolina offers a Biofuels Distribution Infrastructure Tax Credit. Taxpayers who invest in qualified commercial facilities for distributing and dispensing biofuels can receive an income tax credit of up to 25% of eligible costs. This includes expenses related to purchasing, constructing, property, and installation. Qualified infrastructure encompasses pumps, storage tanks, and related equipment specifically used for biofuels. A key requirement is that the facility must clearly label biofuel-related equipment. Similar to the alternative fueling infrastructure credit, this credit is claimed in three equal annual installments from the year the facility is placed in service. Qualifying fuels include E70 (ethanol blends of 70% or more) at retail for vehicles, as well as pure ethanol or biodiesel dispensed by distributors for blending with gasoline or diesel.
For more details, visit the South Carolina Energy Office Funding website.
For legal specifications, refer to the South Carolina Code of Laws 12-6-3620.
Alternative Fuel Project Grants: Supporting Innovative Fuel Initiatives
The South Carolina Office of Regulatory Staff-Energy Office (Energy Office) offers Alternative Fuel Project Grants to support demonstration and pilot projects. These grants can provide up to $25,000 for projects focused on alternative fuels. Eligible applicants are broad, including state agencies, local governments, public colleges and universities, K-12 public schools, and non-profit organizations.
For application guidelines and further information, visit the Energy Office’s Mini-Grant Program website.
Diesel Emissions Reduction Grants: Cleaning Up Diesel Emissions
The South Carolina Department of Environmental Services (DES) administers Diesel Emission Reduction Act (DERA) funding from the U.S. Environmental Protection Agency (EPA). These Diesel Emissions Reduction Grants are available for projects that demonstrably reduce diesel emissions across South Carolina. Funding is accessible to a range of entities, including universities, private organizations, businesses, and local government bodies. Projects that qualify for funding include retrofitting diesel engines, implementing idle reduction technologies, or replacing older, higher-emission vehicles and equipment. Specific terms and conditions apply to these grants.
For more information on funding amounts, eligibility criteria, and the application process, see the DES DERA Grants website.
Hydrogen and Fuel Cell Tax Exemption: Promoting Hydrogen Technology
South Carolina is keen to foster the hydrogen and fuel cell industry through a Hydrogen and Fuel Cell Tax Exemption. This exemption waives state sales tax on several categories of hydrogen and fuel cell related equipment: 1) devices, equipment, or machinery powered by hydrogen or fuel cells; 2) equipment used for hydrogen generation, production, or distribution specifically for hydrogen or fuel cell applications; and 3) equipment primarily used for manufacturing, research, and development within the hydrogen and fuel cell technology sectors.
For the legal framework, refer to the South Carolina Code of Laws 12-36-2120(71).
Idle Reduction and Natural Gas Vehicle (NGV) Weight Exemptions: Reducing Emissions and Supporting NGVs
South Carolina recognizes the benefits of idle reduction technologies and natural gas vehicles through weight exemptions. For vehicles equipped with verified idle reduction technology, an Idle Reduction Weight Exemption allows them to exceed standard weight limits by up to 550 pounds to compensate for the added weight of the technology. Vehicle operators must carry documentation confirming the technology is fully functional.
Similarly, a Natural Gas Vehicle (NGV) Weight Exemption allows vehicles powered primarily by natural gas to exceed weight limits by up to 2,000 lbs. This exemption accounts for the heavier natural gas tank and fueling system compared to diesel counterparts. Operators must provide documentation verifying the weight of the natural gas fueling system upon request.
For legal references, see South Carolina Code of Laws 56-5-4160(M) and South Carolina Code of Laws 56-5-4160(L).
Alternative Fuel Vehicle (AFV) Revolving Loan Program for Public Entities: Financing Clean Vehicle Adoption in the Public Sector
The South Carolina Energy Office (SCEO) manages an Alternative Fuel Vehicle (AFV) Revolving Loan Program for Public Entities. This program provides low-interest loans to public sector organizations for energy efficiency improvements, including the conversion to AFVs and the incremental costs of purchasing new AFVs. Qualified projects must demonstrate reasonable payback periods. Loans can cover up to 100% of project costs, ranging from $25,000 to $500,000 per state fiscal year. Eligible applicants include state agencies, local governments, public colleges and universities, school districts, and private non-profit organizations. State agencies and public educational institutions can further enhance their loan by combining it with a ConserFund Plus grant, potentially covering up to 30% of total project costs.
For more information, visit the ConserFund website.
The relevant legal reference is South Carolina Code of Laws 48-52-650.
Alternative Fuel Vehicle (AFV) Revolving Loan Program for Private Entities: Supporting Businesses in Clean Transportation
The South Carolina Business Development Corporation offers an Alternative Fuel Vehicle (AFV) Revolving Loan Program for Private Entities, mirroring the public entity program. This program provides low-interest loans to businesses and industries for energy efficiency upgrades, including AFV conversions and incremental costs. Utilities, non-profits, and government entities may be eligible under specific conditions. Loans can cover up to 100% of project costs, ranging from $50,000 to $1 million, with repayment terms that vary.
For application deadlines and further details, visit the Energy Efficiency Revolving Loan website.
The legal reference is South Carolina Code of Laws 48-52-650.
Utility and Private Incentives Across South Carolina
Beyond state-level incentives, various utility companies in South Carolina offer their own programs to encourage alternative fuels and vehicles, particularly electric vehicles. These incentives often vary by utility and may include rebates for charging equipment, special electricity rates for EV owners, and pilot programs to support EV adoption.
Here’s a summary of incentives offered by different utilities:
City of Rock Hill – South Carolina
The City of Rock Hill, a municipal utility, provides incentives related to alternative fuels and vehicles. Details on these incentives can be found on the City of Rock Hill website.
Dominion Energy – South Carolina
Dominion Energy, a major investor-owned utility in South Carolina, offers several incentives, primarily focused on electric vehicle infrastructure.
Residential Incentives:
- Infrastructure:
- EV Level 2 Charging Station Purchase Rebate
- EV Charger Deployment Pilot Programs
Non-Residential Incentives:
- Infrastructure:
- EV Level 2 Charging Station Installation Rebate
- EV Charger Deployment Pilot Programs
For detailed information, visit the Dominion Energy website.
Duke Energy – South Carolina
Duke Energy, another significant investor-owned utility, provides a range of incentives to promote EV adoption in South Carolina.
Residential Incentives:
- Fuel Prices:
- EV Time-of-Use (TOU) Rate
- Infrastructure:
- EV Level 2 Charging Station Purchase Rebate
- EV Direct Current (DC) Fast Charging Station Purchase Rebate
- Make-Ready or Pre-Wiring Rebate for EV Chargers
Non-Residential Incentives:
- Infrastructure:
- EV Level 2 Charging Station Purchase Rebate
- EV Direct Current (DC) Fast Charging Station Purchase Rebate
- Make-Ready or Pre-Wiring Rebate for EV Chargers
- EV Charger Deployment Pilot Programs
- Vehicles:
- New EV Rebate
For more details, consult the Duke Energy website.
Fairfield Electric Coop – South Carolina
Fairfield Electric Coop, a cooperative utility, currently does not list specific incentives for alternative fuels or vehicles on their summary page. For the most up-to-date information, please visit the Fairfield Electric Coop website.
Lockhart Power Co – South Carolina
Lockhart Power Co, an investor-owned utility, currently does not list specific incentives for alternative fuels or vehicles on their summary page. Please check the Lockhart Power Co website for any potential updates.
Lynches River Elec Coop – South Carolina
Lynches River Elec Coop, a cooperative utility, currently does not list specific incentives for alternative fuels or vehicles on their summary page. For the latest information, please refer to the Lynches River Elec Coop website.
Northwestern Energy – South Carolina
Northwestern Energy, an investor-owned utility, currently does not list specific incentives for alternative fuels or vehicles for South Carolina on their summary page. For any updates, please check the Northwestern Energy website.
Santee Cooper – South Carolina
Santee Cooper, a municipal utility, offers several incentives to encourage EV adoption.
Residential Incentives:
- Fuel Prices:
- EV Time-of-Use (TOU) Rate
- Infrastructure:
- EV Level 2 Charging Station Purchase Rebate
Non-Residential Incentives:
- Infrastructure:
- EV Direct Current (DC) Fast Charging Station Installation Rebate
- Make-Ready or Pre-Wiring Rebate for EV Chargers
- Vehicles:
- New EV Rebate
For complete details, visit the Santee Cooper website.
York Electric Coop – South Carolina
York Electric Coop, a cooperative utility, offers incentives focused on EV charging infrastructure and time-of-use rates.
Residential Incentives:
- Fuel Prices:
- EV Time-of-Use (TOU) Rate
- Infrastructure:
- EV Level 2 Charging Station Installation Rebate
For the most current information, please visit the York Electric Coop website.
Key South Carolina Laws and Regulations Supporting Alternative Fuels
South Carolina has enacted several laws and regulations to create a supportive environment for alternative fuels and vehicles. These laws cover various aspects, from fuel standards to vehicle fees and infrastructure development.
Biofuel Blending Capability Requirements and Liability
South Carolina law mandates that entities involved in bulk fuel transfer, such as terminal operators, suppliers, and refiners, must offer petroleum products suitable for biofuel blending. These entities are protected from liability related to subsequent blending at retail locations, promoting the availability and use of biofuels throughout the state. Furthermore, distributors and retailers registered with the IRS are legally allowed to blend biofuels for sale in South Carolina.
Reference: South Carolina Code of Laws 39-41-235.
Electric Vehicle (EV) Cost Recovery for Utilities
Public electric utilities in South Carolina are permitted to recover costs associated with programs and resources supporting distributed energy resources and load management technologies, including EV charging infrastructure. This cost recovery can be pursued through rate case filings with the South Carolina Public Service Commission, ensuring utilities can invest in EV infrastructure without financial penalty.
References: South Carolina Code of Laws 58-39-120 and 58-39-130.
Hydrogen Fueling Infrastructure Permitting and Safety Regulations
South Carolina has established specific permitting and safety regulations for hydrogen fueling infrastructure. Prior to construction or renovation of hydrogen fueling facilities, individuals or entities must submit an application and pay a $10 fee to the State Fire Marshall or a certified designee. The State Fire Marshall is responsible for enforcing hydrogen fueling infrastructure laws, ensuring compliance with national safety standards, developing training and certification for local permitting officials, setting minimum design and operational requirements, and conducting random inspections of licensed facilities.
References: South Carolina Code of Laws 23-9-20 and 23-9-510 through 23-9-570.
Alternative Fuel Vehicle Fee for Road Maintenance
To ensure fair contribution to road maintenance, owners of plug-in electric vehicles and fuel cell electric vehicles in South Carolina are required to pay a biennial fee of $120, in addition to standard vehicle registration fees. Hybrid electric vehicle owners pay a reduced biennial fee of $60.
References: South Carolina Code of Laws 56-3-645 and 12-28-110(39).
Idle Reduction Law to Minimize Emissions
South Carolina has implemented an Idle Reduction Requirement to curb unnecessary diesel emissions. Commercial diesel vehicles with a gross vehicle weight rating exceeding 10,000 pounds are restricted from idling for more than 10 minutes in any one-hour period. Exemptions are in place for various situations, including traffic conditions, safety or health emergencies, emergency and law enforcement activities, maintenance, inspections, and specific work-related operations. Violators face a $75 fine per offense, with a portion of the fine dedicated to the Diesel Idling Reduction Fund for public awareness programs.
References: South Carolina Code of Laws 56-35-10 through 56-35-80.
Biodiesel Blend Mandate for State Fueling Facilities
Reflecting a commitment to biofuels, South Carolina mandates that all state-owned diesel fueling facilities must offer fuel containing at least 5% biodiesel (B5) at all diesel pumps. This Biodiesel Blend Distribution Mandate ensures consistent availability of biodiesel for state vehicles.
Reference: South Carolina Code of Laws 12-63-30.
State Agency Preference for Clean Vehicles in Procurement
South Carolina law directs state agencies to prioritize the purchase of alternative fuel and advanced vehicles, including hybrid, plug-in hybrid electric, biodiesel, hydrogen, fuel cell, or flexible fuel vehicles. This State Agency Preference for Alternative Fuel and Advanced Vehicles applies when vehicle performance, quality, and life cycle costs are comparable to conventional vehicles, driving demand for cleaner options.
Reference: South Carolina Code of Laws 1-11-310.
Biodiesel Use in School Bus Fleets
The state’s commitment to biodiesel extends to school transportation. The South Carolina Department of Education is required to fuel state school bus fleets with biodiesel when feasible, promoting cleaner transportation for students through Biodiesel Use in School Buses.
Reference: South Carolina Code of Laws 59-67-585.
Propane Safety and Liability Protections
South Carolina provides liability protections to individuals involved in the propane industry, from installation to distribution and transportation. These Propane Safety and Liability measures offer immunity from civil liability for injury or damage, provided reasonable care was exercised and end-users were warned of potential misuse.
References: South Carolina Code of Laws 15-3-690, 40-82, and 40-82-270.
Low-Speed Vehicle Access to Roadways
South Carolina law defines and regulates the use of low-speed vehicles on public roads. Low-speed vehicles, meeting specific speed and safety requirements, are permitted on secondary highways with speed limits up to 35 mph. They must be registered, licensed, and insured like standard passenger vehicles. Homemade or modified vehicles do not qualify as low-speed vehicles under this Low-Speed Vehicle Access to Roadways regulation.
References: South Carolina Code of Laws 56-1-10, 56-2-100 to 56-2-130, and 56-5-820.
Clarification on Public Utility Definition for EV Chargers
South Carolina law clarifies that operating an electric vehicle (EV) charger does not classify an entity as a public utility. This Public Utility Definition aims to encourage private investment in EV charging infrastructure by removing regulatory hurdles associated with public utility status. However, electricity for EV chargers must be procured from authorized electric utilities, and chargers must be immobile.
Reference: South Carolina Code of Laws 58-27-1060.
Ongoing Studies on Electric Transportation Impacts
South Carolina is actively studying the broader impacts of electric transportation through the Joint Committee on the Electrification of Transportation. This committee is tasked with examining the challenges and opportunities related to EV adoption and making recommendations to the General Assembly. Electric Transportation Impact Studies cover environmental, economic, customer, and infrastructure impacts. The South Carolina Department of Revenue also provides annual reports to the committee on transportation system revenue.
Reference: South Carolina Code of Laws 58-27-260.
Utility Impact Studies on Transportation Electrification
The Public Service Commission (PSC) is also actively involved in studying transportation electrification. Through Transportation Electrification Utility Impact Study dockets and triennial reports to the Joint Committee, the PSC is addressing regulatory challenges and opportunities related to grid integration, policy, data management, infrastructure investments, EV adoption rates, and rate design strategies.
References: South Carolina Code of Laws 58-27-265 and South Carolina PSC Docket No. 2023-121-E.
Electric Transportation Stakeholder Engagement
The South Carolina Office of Regulatory Staff (ORS) leads stakeholder engagement efforts to explore and advance transportation electrification. The Electric Transportation Stakeholder Group, facilitated by ORS, brings together public and private sector stakeholders to examine legislative, regulatory, environmental, economic, and customer aspects of EV adoption, submitting bi-annual reports on opportunities and challenges.
Reference: South Carolina Code of Laws 58-27-270.
State Support for EV Infrastructure Deployment
The South Carolina Department of Transportation (SCDOT) is leading the state’s efforts in EV infrastructure deployment through an Interagency EV Working Group. This Electric Vehicle (EV) Infrastructure Deployment Support initiative involves developing a comprehensive plan for EV resources and infrastructure, prioritizing charging locations along interstates and in rural areas, identifying funding sources, and evaluating implementation methods.
Reference: Executive Order 2022-31.
Economic Development Initiative for EV Industry
To foster the electric vehicle industry within the state, the South Carolina Department of Commerce has established the South Carolina EV Economic Development Initiative. This initiative aims to strategically encourage and incentivize EV research, development, and production in South Carolina, collaborating with the Interagency EV Working Group to implement a statewide EV deployment plan under the Electric Vehicle (EV) Deployment Support program. Further information is available on the Department of Commerce’s SCpowersEV website.
Reference: Executive Order No. 2022-31.
This comprehensive overview of South Carolina’s incentives and laws demonstrates the state’s proactive approach to supporting alternative fuels and vehicles. As the transportation landscape evolves, Car Repair Online will continue to provide updates and insights into these crucial developments.
