|
Workers’ comp, hydrogen fuel legislators’ agenda
By Dan McCue
Staff Writer
A future hydrogen economy, workers’ compensation reform and funding a new port access road in North Charleston are likely to be the highest profile business items for South Carolina legislators who reconvened in Columbia on Jan. 9.
But unlike last year, when much of the debate in the state capitol centered on a single issue, namely how and to what extent to lower property taxes, the 117th General Assembly will grapple with a wide range of issues running the gamut from restructuring the state government to education to health care to raising the state’s cigarette tax.
How far into this agenda the Legislature gets is likely to depend on how well lawmakers and Gov. Mark Sanford, never the most cordial of couplings despite Republican control of both the Statehouse and the governor’s mansion, get along.
Fueling hydrogen research
House speaker Bobby Harrell effectively got the body’s agenda rolling shortly before Christmas when he pre-filed legislation that, if passed, would create $15 million in state grants and tax credits to companies that partner with South Carolina-based institutions and conduct hydrogen fuel research in the state.
The Charleston Republican has said such incentives are critical to harnessing and furthering hydrogen research already taking place across the state and spinning it not only into a significant source of the nation’s energy supply, but as an economic development driver for the state’s future.
“This is an opportunity for South Carolina to be at the forefront of the nation’s energy future. The plan is centered around two things: developing a clean alternative fuel and creating jobs for our citizens,” Harrell said in announcing his proposal.
The $15 million South Carolina Hydrogen Infrastructure Development Fund would be available to companies that work with the National Science Foundation-designated fuel cell research center at the University of South Carolina, Clemson University’s International Center for Automotive Research, South Carolina State University and the Savannah River National Laboratory.
The legislation would also require state agencies to consider purchasing equipment and machinery operated by hydrogen fuel cells and would provide a sales-tax exemption for equipment or machinery that is operated by or used to distribute hydrogen fuel cells.
Port access road funding
Shortly after Harrell’s announcement, Sanford released a proposed state budget that provides $100 million in the coming year to start work on a road to a proposed new S.C. State Ports Authority terminal in North Charleston.
As outlined by the U.S. Army Corps of Engineers in a report released Dec. 15, the preferred plan for that roadway is to create a four-lane, limited-access highway, a local access road and a new access road to the Cooper River Marina. While passenger cars will be able to get onto Interstate 26 via the local access road, trucks using the terminal will not be able to use the local access road.
But that plan will also require the widening of a portion of I-26, something that could push the combined price tag for the entire project to $500 million.
In his budget announcement Sanford said he will request an additional $177 million during future sessions of the General Assembly.
Not to be left out of the equation, the S.C. Chamber of Commerce, the state’s largest pro-business lobbying group, has also thrown its support behind the much-delayed expansion of the Port of Charleston, placing it near the top of its legislative agenda.
Chamber Chairman Harris E. DeLoach said the port expansion, which is expected to be permitted by the Corps on April 1, garners support statewide because it impacts so many of the state’s businesses in significant ways.
Complicating the situation is a state Department of Transportation that is in significant flux at the time, thanks to the departure of the agency’s executive director following a critical audit.
This comes against a backdrop of calls for a larger restructuring of the state government, which Sanford contends could save $19 million a year. As the session got under way, there were already two bills that ask legislators to decide whether several statewide offices should continue to be elected or should be appointed by the governor.
If passed by the Legislature, the constitutional change requires voter approval before going into effect.
Separately, lawmakers are considering merging the roles of the highway commission chairman and executive director and having that person appointed by the governor.
Mending workers’ comp
State lawmakers also will consider changing the state’s workers’ compensation system in an attempt to stem the impact of several years of double-digit premium increases on business owners.
In its 2007 Competitiveness Agenda, prepared in collaboration with the S.C. Council on Competitiveness, the Palmetto Business Forum and the Palmetto Institute, the S.C. Chamber of Commerce is calling for a comprehensive review and overhaul of the state’s current tax system, abating what it describes as adverse effects of the 2006 property tax relief granted to homeowners.
Lawmakers last year provided relief from school operating taxes to owner-occupied homes and paid for it with a one-cent increase in the state sales tax. The chamber fears future revenue shortfalls that occur as a result of the tax break will have to be shouldered by business owners.
Dan McCue is a staff writer for the Business Journal. E-mail him at dmccue@charlestonbusiness.com.
|
E-Mail This Article
Printer-Friendly Version