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Opinion: South Carolina Economy Relies on Efficient Truck Transportation

Over the past year, we’ve all had to adapt to new norms because of the pandemic. When we were told to stay at home to slow the spread of COVID, we banded together as a country and did so. With so many people unable to leave their homes and travel to their local stores to purchase essential products, our country turned to online shopping.

Online shopping isn’t going anywhere either, as e-commerce sales are expected to grow even after the pandemic reaches an end. With this major uptick in online ordering comes a heightened need for U.S. cargo carriers. From delivering masks, hand sanitizer, and critical vaccines to food and clothes, cargo carriers helped maintain supply chains and our economy in a time when we saw countless businesses forced into closure.

Online retailers rely heavily on freight delivery carriers such as FedEx, UPS, and a number of other surface transportation companies to get the American people what they need. Nearly 70 percent of the freight moved each year in the U.S. is transported by truck. With the U.S. heavily dependent on freight trucks for shipping, it’s important that our country’s transportation system and trucks are positioned to match up with increasing cargo and demands for capacity.

To further stimulate economic recovery from the pandemic, delivery trucks need to be able to carry cargo at maximum capacity. However, the solution of a modest length increase in freight trailers continues to be thwarted by a 40-year old regulation that limits tandem truck trailers to be 28-feet in length. It’s hard to believe that our country’s transportation system is still held back by a regulation enacted before the emergence of the internet, e-commerce and cell phones, and it’s time to modernize regulations to meet our current needs.

Though 20 states currently allow twin-33 trailers, the trailers are banned from crossing state lines which hinders a huge amount of interstate commerce. According to Americans for Modern Transportation, “studies have shown that twin 33’ trailers can move the same amount of freight with 18% fewer truck trips, reducing the congestion and allowing consumers and businesses to realize the $2.8 billion annually in lower shipping costs with quicker delivery times.”

The federal law limiting twin trailers to 28’ in length directly holds back South Carolina’s economy, as we are missing out on a chance to more rapidly push out our goods, especially given that our top export is transportation equipment. As South Carolina continues to grow as one of the largest state exporters, experiencing a 74% growth in state exports between 2008 and 2018, our state needs to set itself up for even more growth in the next 10 years. Our people rely on the success of our exports as well, and in 2016 alone South Carolina exports supported over 157,000 jobs.

Additionally, if we were able to add a mere five feet to our trailers, the results would not only benefit our economy, but also our environment. The adoption of 33-foot twin trailers, commonly known as twin-33s, would save hundreds of millions of gallons in fuel, significantly lower carbon emissions, and lead to fewer trips on the road. Twin-33 trailers increase the capacity of each truck trip by more than 18 percent over the current twin-28’ configuration, and their efficiency and sustainability would help ensure economic and environmental success for our state and country.

As our country climbs out of the pandemic, our cargo carriers should not be hindered by decades-old regulations. We need our lawmakers to remove these regulations in order to add desperately needed capacity to our transportation system and help fuel our economic recovery. House Transportation and Infrastructure Committee and  Congresswoman Nancy Mace (R-SC) needs to recognize this issue and fight for our economy, our environment, and the South Carolina businesses and consumers who depend on efficient truck transportation and supply chains. It is time for our country and industry to move forward.

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Senator Massey Discusses Hot Topics In South Carolina On Podcast Appearance

On a recent podcast, popular with political and media figures, the State Senate Majority Leader Shane Massey discussed the big issues the SC State Senate are addressing this session. 

Senator Massey was a recent guest on the “Bourbon In The Backroom” podcast, hosted by former State Senators Joel Lourie and Vincent Sheheen, to discuss all things SC politics. 

To start off the interview, Massey said he was pleased with the progress made in the first seven weeks of the legislative session, including passing the Fetal Heartbeat Bill, working with the state health officials from the Department of Health and Environment Control (DHEC), and coordinating vaccine distribution. 

The Majority Leader also discussed the issues schools have faced because of the pandemic. Now that a vaccine is available, Massey said, “we’ve got to get the kids back in school. 5 days a week, in front of their teachers.” He also mentioned his concern that “[he hears] consistently from teachers that the kids who need to be in school the most are the ones who have gone full virtual.” 

After spending some time discussing possible remedial efforts post COVID, the conversation moved to discussing the future of the embattled state-owned electric utility, Santee Cooper.

The leader of the Senate’s Republicans told the hosts that back in 2017, “we knew Santee Cooper’s day was coming, we just knew it would take awhile” – his prediction was correct. 

Now in the 2021 Legislative Session, the Santee Cooper debate has moved to the State Senate. While Massey did not comment on his position, he did say, “we cannot allow Santee Cooper to continue operating as they’ve been operating,” and that “the longer things go, the less confidence [he has] in Santee Cooper’s ability to fix itself.”

Senator Massey’s comments on the podcast came before his remarks during a recent debate in the State Senate on the future of the struggling public utility. 

“We have got to decide this issue this year, this legislative session” said Massey addressing his fellow state senate members on Thursday March 11. 

Given Massey’s position as the Majority Leader of the State Senate, his remarks indicate action on the future of state-owned Santee Cooper is more likely. Stay tuned. 

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House Approves Santee Cooper Compromise, Bill Moves To the Senate

On Tuesday, the House passed legislation addressing the debt-ridden Santee Cooper by a vote of 89-26. Here are the key points outlined in the bill: 

  • The bidding process will reopen for interested private companies.
  • A committee of three Representatives and three Senators will review and negotiate the offers, and if accepted, see through the selling process.
  • While considering offers, the entire board of Santee Cooper will be replaced with qualified professionals. 
  • Until the committee accepts a bid (or if the utility isn’t sold), regulators will be involved in setting rates. 

Now the state Senate will debate the legislation — taking it one step closer to the governor’s desk. What’s most interesting about this bill is that it doesn’t take a firm stance on selling nor reforming the utility — it simply allows the bidding process to be reopened and outlines a plan to reform the utility while it’s on the market. Although this doesn’t eliminate efforts to reform the utility, lawmakers pushing for a sale are even more convinced that reform is simply not possible: In the first board meeting of 2021, Santee Cooper executives said they will need $100 million dollars by the end of the fiscal year to stay afloat. Adding more debt on top of the nearly $7 billion debt the state-owned utility currently has. 

Lawmakers are still staunchly divided on the issue, but House Speaker Jay Lucus was pleased with the compromise, saying: 

“I have made no secret of my disdain for Santee’s current leadership and the need for their immediate replacement. I have also repeatedly called for more transparency and accountability in how Santee Cooper determines rates. Today, the House resoundingly delivered on both issues.” 

As for how this impacts Santee Cooper, the possibility of a sale is looking more certain. When offers were considered by industry experts last session, the bid from Florida-based NextEra Energy was overwhelmingly considered the best option, but the House rejected their initial offer. Proponents of a sale are hopeful NextEra will re-enter the bidding process, this time with a better offer. 

Although the case for a sale looks solid, some members of the Senate remain determined to keep the utility under state control. Despite expert opinion, Senator Dick Harpootlian is determined to keep NextEra Energy out of South Carolina, claiming he will block any bid from the company. Harpootlian did not explain why he singled out NextEra — they are not the only private company who may potentially bid on the utility — nor did he provide an alternative solution. Senator Luke Rankin, who authored the legislation to reform, not sell, has allegedly made threats to lawmakers “in connection with the ongoing debate over the utility’s disposition.” Like Harpootlian, Rankin continues to fight the option to sell without providing an alternative. 

The contentious bill now moves to the Senate, where there’s also a sharp divide between pro-sell and anti-sell Senators. Time will tell which camp comes out on top. 

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Recap: Governor McMaster’s State of the State Address

On Wednesday night, January 13th, Governor Henry McMaster delivered his annual State of the State Address to a Joint Assembly of the State Legislature. His speech covered issues including CARES Act funding for small businesses, record business at the Port of Charleston, school safety measures, and pay raises for teachers, among others. Here are some key takeaways: 

Santee Cooper 

The debt-ridden electric utility, Santee Cooper, had its turn in the spotlight. McMaster said plainly: “There is no state agency in more need of reform or dissolution than Santee Cooper.” He continued: 

“This rogue agency and its leadership have displayed arrogance and contempt for state law and the truth. Their incompetence helped create the largest nuclear power fiasco in modern times… The time has long passed for the resolution of Santee Cooper’s fate.” 

The House and Senate reconvened this week, and in just one meeting, the House Ways and Means Committee passed a plan to deal with Santee Cooper with astonishing speed, and two other bills were filed in the Senate proposing methods to sell the troubled utility. The legislature is wasting no time in dealing with Santee Cooper so they can focus on supporting education, jobs, and the economy post-COVID. 

COVID Economic Impact  

McMaster dedicated much of his time addressing how our state is recovering from the economic consequences of the pandemic. Surprisingly, the stats were overwhelmingly positive. 

  • In April, South Carolina lost 300,000 jobs. As of today, we’ve regained 220,00 of those jobs. That’s over an 81% gain (the national average is at 55%). 
  • In April, the unemployment rate was 12.4%. As of today, unemployment in South Carolina is the lowest in the entire Southeastern United States at 4.4% 
  • Today, South Carolina is one of the most financially stable states in the county. 

McMaster attributed all of the above to the strategy our state took to combat the virus: 

“We took a road less traveled – a better road.  We slowed down, but safely remained open.  We never closed. Our reasonable steps of limited, measured and temporary actions allowed us to combat the virus without crippling our economy.” 

Education and COVID Moving Forward 

McMaster also addressed how education was, and will continue to be, affected by COVID-19. McMaster stated his position plainly: children should be able to return to school 5 days a week if the parent’s see fit. To mitigate safety concerns, the following steps are being taken: 

  • $10 million is being spent on masks and PPE to public schools across the state. 
  • Every school district has access to rapid antigen tests through DHEC. 
  • Every school district has been given the resources to provide full-time, in-person instruction. 

Since many schools remain reluctant to re-opening, McMaster asked the General Assembly to write legislation requiring public schools to return to classroom instruction  — he will sign into law immediately. 

Read the Governor’s complete remarks here. 

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Santee Cooper Faces the Chopping Block: House Bill Passes in Committee, Two More Bills Filed in Senate

After years of mounting pressure to make a decision on state-owned Santee Cooper, South Carolina lawmakers returned to Columbia on Tuesday and convened the 2021 legislative session. Lawmakers wasted no time getting started on debating the future of the debt-ridden utility.

In less than 30 minutes of debate, the House Ways and Means Committee approved House Bill 3194. This bill would authorize the General Assembly to sell the public utility (debt and all) to a private party, and sets up the procedures for any sale: by appointing a special committee to negotiate the sale.

As the House focused on its plan, two more bills were filed in the State Senate on Tuesday. Senate Finance Committee Chairman Hugh Leatherman and Senator Tom Davis each filed their own plans for the state-owned utility. Leatherman’s bill is similar to the House plan and establishes procedures for any potential sale. Davis’ bill calls for the utility to be transferred to a multi-state electricity distribution system called a regional transmission organization that currently does not operate in the state. 

While addressing the committee during the afternoon hearing,  Ways and Means Chairman,  Representative Murrell Smith summed up the General Assembly’s sentiment toward Santee Cooper, saying, “I’ve yet to find anyone in here that says Santee Cooper ought to continue as is.” 

The bill will now advance to the full House for debate while the bills filed by Leatherman and Davis move to the Senate committees. It’s been three years since the state-owned utility pulled the plug on its failed VC Summer nuclear project and lawmakers are finally taking action to solve the largest financial disaster in our state’s history. If the fast pace at which lawmakers are moving is an indicator, the prospects of Santee Cooper remaining a state-owned utility is looking less and less likely.  

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Santee Cooper South Carolina Coronavirus Funding

A 2021 Legislative Session Preview For South Carolina Residents

With only a few days left in 2020, South Carolina lawmakers are gearing up for the 2021 legislative session which is scheduled to convene on January 12. Much of this year’s legislative session was halted due to the COVID-19 pandemic, so lawmakers and South Carolinians are eager for updates on a number of pressing issues taking place in our state. 

State Budget

The economic damage from the COVID-19 pandemic hurt the state’s economy but not as dramatically as other states. Earlier this month, officials from the S.C. Board of Economic Advisors issued their revised budget forecast. The news was not as promising as their pre-pandemic forecast. According to The State, the projected budget surplus shrunk down to $36.3 million and the general fund is expected to be at $9.6 billion. 

The State reported Frank Rainwater, director of South Carolina’s Revenue and Fiscal Affairs office saying. “We feel relieved that it hasn’t been worse than what it is, but we know we’re not out of the woods yet. And until we see COVID in our rear view mirror, we don’t have a lot of confidence in returning to normal growth here some time soon.” 

Passing a state budget is one of the few constitutionally mandated legislative action items lawmakers must pass each year and always takes priority. 

Santee Cooper

Aside from the state budget, Santee Cooper is the largest topic for lawmakers to discuss this legislative session. What to do with the debt ridden state utility was slated to be settled in the 2020 legislative session, prior to the COVID-19 pandemic. 

It’s been three years since the state-owned utility pulled the plug on its failed VC Summer nuclear project and lawmakers have yet to make a decision on whether to protect customers and sell it or allow the troubled utility to try to reform itself. 

Governor McMaster has remained strong in his position to sell Santee Cooper, but the legislature hasn’t been as convinced. At  the end of last session, the S.C House and Senate remained divided on whether to sell or reform Santee Cooper. The House Speaker Rep. Lucas and House Ways and Means Committee Chair, Murrell Smith remain determined to get the best deal for the state and continue negotiations for a sale.  Since then a number of missteps by Santee Cooper has spurred Senate legislators to take action.  Most recently, Senate Finance Chairman Hugh Leathman had formed the Santee Cooper Review and Policy subcommittee (SCRAP) despite announcing their intention to seek reform earlier that year. 

Mistrust in the utility has grown and representatives in the House have come together to support a sale and continue talks with Florida-based NextEra Energy. In 2021, the pendulum may swing in McMaster’s favor. 

State Representative Murrel Smith (R-Sumter), who chairs the Ways and Means Committee, has assembled a task force to push the issue to the forefront. This, combined with Leatherman’s aptly named SCRAP committee, means the legislature is sure to prioritize the future of Santee Cooper when they reconvene in January. 

Medical Marijuana 

This election year saw more states voting to legalize cannabis for medical use. 36 states now permit the use of medical marijuana. Voters in Mississippi voted overwhelmingly for the medical marijuana measure on the state-wide ballot this year. 

The Post & Courier editorial board just recently endorsed the South Carolina Compassionate Care Act.

“We’ve long supported legalizing marijuana for medical use, which has been prescribed for those suffering from chronic pain, cancer-related wasting and nausea, glaucoma and dozens of other medical conditions. A clear majority of South Carolinians agree: The most recent poll of state residents showed 72% support legalizing medical marijuana.”

State Senator Tom Davis (R-Beaufort) has been a passionate supporter of legalizing the use of medical marijuana and has sponsored legislation for the last five years. According to a Post & Courier editorial, Sen. Davis is optimistic for the legislation’s passage in 2021. 

Sunday Liquor Sales 

As one of only six states in the nation to still ban liquor sales on Sundays in stores, South Carolina lawmakers are sure to be debating the issue just as they have in recent years. During the 2020 legislative session it was proposed that the highly populated, tourist heavy counties be given an opportunity to vote on whether or not to legalize Sunday sales as many lawmakers were told that tourists who travel to South Carolina over the weekend are surprised to learn they can’t buy a bottle of liquor. Neighboring states like Georgia took a similar route, legalizing Sunday sales county by county and city by city, leaving it up to the constituents to decide if they wanted to lift the ban or not in their own communities.

Legalizing Sunday liquor sales in stores still faces strong opposition from many, as some lawmakers feel it will make the state less friendly and lead to 24-hour liquor sales.

A bill sponsored by Rep. Todd Rutherford (D-Richland) has already been prefiled in the South Carolina House for the 2021 legislative session and was referred to the Committee on Judiciary. 

New Recycling Technologies 

According to the Environmental Protection Agency only 9% of the plastics generated in the U.S. are recycled. The remaining amount often ends up in landfills. 

New technology is allowing for more plastic waste to be recycled by turning plastic back into its raw material and used for products or fuel. The process means less plastic will make its way into landfills. 

Nine other states have enacted legislation laying out regulations for the new advanced recycling technology since 2017 and South Carolina could be next. State Senator John Scott (D-Richland) has pre-filed legislation similar to what other states have passed. 

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