STATEHOUSE REPORT | ISSUE 24.05 | Jan. 31, 2025
BIG STORY: State’s growing EV industry may face trouble
MORE NEWS: McMaster goes nuclear in annual address
LOWCOUNTRY, Ariail: First rule of holes
BRACK: Is Donald Trump America’s first punk president?
MYSTERY PHOTO: What is this structure?
FEEDBACK: On data centers, transgender bathrooms
State’s growing EV industry may face trouble from Trump
By Jack O’Toole, Capitol bureau | When President Donald Trump vowed last year to kill “the green new scam,” South Carolina voters likely assumed he meant progressive proposals like the“Green New Deal” by U.S. Rep. Alexandria Ocasio-Cortez, D-N.Y.
But what if he was actually including something that hit much closer to home – the Palmetto State’s fast-growing, billion-dollar electric vehicle (EV) industry?
That’s the question now facing S.C. political and business leaders as a raft of new Trump administration executive orders targeting federal clean energy initiatives threaten the state’s multibillion dollar bet on EV manufacturing and technology.
To date, S.C. officials have worked to downplay the conflict, perhaps reflecting Trump’s long-time popularity with state voters.
“South Carolina remains steadfast in our commitment to supporting all industries,” S.C. Commerce Department spokesman Alex Clark told Statehouse Report on Jan. 27, while declining to speculate on potential outcomes.
That statement was in keeping with Gov. Henry McMaster’s comments earlier in the month, which first signaled the state’s “keep calm and carry on” approach to the issue.
“There may be some rollbacks. There may be partial rollbacks,” McMaster told reporters on Jan. 9. “But if that is a strong industry, and I believe it will be, it’ll be just fine.”
But according to experts like Stan Cross of the Southern Alliance for Clean Energy, the Palmetto State has “a lot at stake” as Trump moves to limit federal EV investments and incentives.
“South Carolina has been very successful, attracting over $13 billion in private sector investments, which are expected to create more than 11,000 jobs manufacturing electric vehicles and batteries,” Cross said. “A strong EV market is in the state’s interest.”
S.C. Sen. Ed Sutton, D-Charleston, echoed those concerns, calling Trump’s moves “incredibly harmful” to the state’s economy.
“I encourage our Republican U.S. senators and House members to push back,” Sutton said. “Or be prepared to answer the mail when thousands of South Carolina workers no longer have a job.”
The big picture
With major auto manufacturers like BMW, Volvo and Volkswagen already making cars in S.C., including some EVs, why have state leaders put such a focus on expanding EV and battery manufacturing?
First, and most obviously, it’s a growing market. One out of every five cars sold around the world last year was an EV.
But even more, the emergence of the EV sector has given S.C. a once-in-a-lifetime opportunity to build advanced automotive factories that are capable of manufacturing more complex and profitable components, such as batteries and engines.
That’s critical in a state whose auto plants have traditionally added only about 25% of the final value of the cars they manufacture, according to a 2022 state report — a fact that Trump derided in an October 2024 interview with Bloomberg News.
“They don’t build cars, they take them out of a box and they assemble them,” Trump said of S.C. auto workers. “We could have our child do it.”
But to change that, S.C. is relying on Biden administration EV initiatives that Trump’s recent executive orders would eliminate.
Experts say that four orders are of particular concern:
- One ends the $7,500 tax credit for EV purchases.
- Another freezes federal spending on charging stations.
- A third pauses all grants and loans, including subsidies for EV and battery manufacturers in S.C.
- And a fourth effectively rolls back Biden-mandated fuel economy standards, which were expected to drive future EV sales.
“The Biden administration’s standards basically dictated that by 2030 or 2035, 50% to 60% of new car sales would have to be EVs,” said John Connaughton, a UNC Charlotte economist who’s studied the EV market. “And that just got turned around the other day.”
‘A wait and see period’
According to experts, the biggest near-term threat from Trump’s orders will probably be slower EV investment, as manufacturers try to understand the new landscape.
“The main factor we see in the short run is that these EV changes introduce more uncertainty,” University of South Carolina economist Joseph Von Nessen told Statehouse Report in a Jan. 27 interview. “And uncertainty tends to breed paralysis, because it limits what businesses can know about the future and makes them more cautious [regarding] investment decisions.”
Nevertheless, Von Nessen says, the fate of S.C.’s EV gamble will be determined more by consumer demand than any particular set of executive orders.
“Looking long term, there’s still no question we’ll see real growth in the EV market,” he said. “The question is how fast the market will expand and where it will settle.”
And because S.C.’s EV manufacturers are focused on the international market, where sales are more robust, the potential for success is still strong, he says.
“As an export-oriented manufacturing state, South Carolina is looking at global demand, not just what’s happening in the U.S.,” he said. “And manufacturers are going to continue to respond to that.”
Still, Von Nessen circled back to the problem of uncertainty, particularly when asked about the impact of promised Trump tariffs.
“We’re really in a wait and see period,” he said.
- Have a comment? Send to: feedback@statehousereport.com.
McMaster goes nuclear in State of the State address
By Jack O’Toole, Capitol bureau | A failed nuclear project that landed two executives in prison and cost state residents about $9 billion continued its improbable rise from the dead when S.C. Gov. Henry McMaster endorsed plans to revive it in his Jan. 29 State of the State address.
“I believe that restarting these two reactors will not only help fuel our state’s future power needs, but will also usher in a nuclear power renaissance across the country,” McMaster said.
The two partially-built reactors, located at the V.C. Summer Nuclear Station in Fairfield County, were abandoned in 2017 when delays and cost overruns crippled the project, pushing then-SCANA Corp. into bankruptcy. An ensuing federal investigation found that company executives lied to regulators, investors and ratepayers throughout the process.
State leaders now hope to complete the project by selling the reactors to private investors or a company with large-scale energy needs. The idea gained momentum among lawmakers last year when Microsoft announced plans to help restart Pennsylvania’s Three Mile Island nuclear plant to power its East Coast data centers.
On Jan. 22, state-owned utility Santee Cooper, an original project co-developer that took possession of the site in 2018, said that it would accept qualified bids for the reactors through May 5.
McMaster’s endorsement of the plan was the highlight of a State of the State address that otherwise offered few surprises, with praise for the state’s booming economy taking center stage, alongside plugs for longtime conservative priorities like income tax cuts, tort reform and private school vouchers.
“I ask that the General Assembly send to my desk, as soon as possible, a new Education Scholarship Trust Fund bill,” McMaster said in reference to vouchers to use public money for private education. “Parents, not school attendance lines, should determine the education that best suits their child’s unique needs.”
Colleton County Sen. Margie Bright Matthews pushed back hard on that idea in the Democratic response, arguing that public schools should be fully funded before any public money is used to subsidize private education.
“Instead of sending our tax dollars to private schools, we should first fully fund our public schools—something South Carolina has neglected to do for decades,” Matthews said.
But she saved her sharpest criticism for the state’s ongoing multibillion dollar accounting scandal, which has already led to the resignation of the state’s auditor and comptroller, as well as a federal securities investigation. On Jan. 16, articles of impeachment were introduced against state Treasurer Curtis Loftis for his role in the fiasco.
“Where’s the money, Treasurer Loftis?” Matthews asked. “And where’s the accountability, Governor? The buck stops with you.”
Next week in the Statehouse
The S.C. House and Senate are expected to reconvene at noon on Feb. 4 as GOP leaders continue to move early legislative priorities, including school vouchers and lawsuit reform.
Committees will meet throughout the week. Highlights include meetings to discuss school academic standards, criminal justice issues and new vape regulations, as well as hearings on a bill that would allow cities to hold cemetery owners responsible for upkeep.
- A complete listing of streamable committee meetings is available on the Statehouse website at scstatehouse.gov/video/schedule.php.
In other recent news
Loftis insists he won’t resign over $1.8 billion accounting error. In a combative S.C. House hearing, state Treasurer Curtis Loftis called ongoing questions about his role in a $1.8 billion state accounting error a ‘witch hunt,’ and claimed that outside auditors refused to meet with his office to discuss their investigation.
-
- RELATED: State’s accounting scandal explained
S.C. Senate OKs school voucher bill funded by lottery. The S.C. Senate passed a private school voucher bill using state Education Lottery dollars. Now it’s the House’s turn, where the path may be rockier.
S.C. lawmakers consider restrictions on social media for minors. Members of the S.C. House Judiciary Committee met to consider a bill to ban minors from having social media accounts without parental permission, prohibit adults from messaging minors unless they’re already connected, and expand parental controls over minors’ social media accounts.
S.C. Republicans propose ‘no tax on tips’ bill. State Sen. Matt Leber, R-Charleston, and Rep. James Teeple, R-Charleston, introduced companion bills in the South Carolina legislature to exclude cash and electronic tips from state income taxes.
Bill to adjust liquor liability laws in S.C. A change to the current law would limit bar and restaurant owners’ liability when they’re found to have overserved a patron, something the president and CEO of South Carolina Coalition for Lawsuit Reform said is needed to restore balance and fairness to our legal system.
S.C. bill would require Big Brother cameras in classrooms. A new bill would require all K-12 public schools to install cameras in classrooms. S.C. Rep. Mike Burns (R – Greenville), who filed the legislation, says it’s necessary to ensure that teachers are not going “out of bounds” with regard to race, sex or other hot-button issues.
First rule of holes
Award-winning cartoonist Robert Ariail has a special knack for poking a little fun in just the right way. This week, he takes on the craziness of a $1.8 billion – billion – accounting error that has snarled the state in a fiscal finger-pointing fiasco.
- Love it or hate it? Did he go too far, or not far enough? Send your thoughts to feedback@statehousereport.com.
Is Donald Trump America’s first punk president?
Commentary by Andy Brack | Angry, petulant, childish, narcissistic – words that similarly describe a punk and a president.
The Sex Pistols’ Johnny Rotten sang an anthem of angst, “Anarchy in the U.K.,” in 1976 to transform decaying England’s music scene through punk rock. He had bad skin, dyed orange hair and fronted a rage that inspired a genre.
President Donald Trump sang an anthem of angst throughout 2024 to recapture the White House in a petulant power grab – the likes of which America has never seen. He has bad skin, orange hair and fronts a rage that inspired a mob to attack the U.S. Capitol and fuel a thick-minded movement.
Some would say it’s not appropriate or correct to compare English punks and MAGA punks. They might note how punk rock was a musical rebellion against an established economic order that was failing Britain with high inflation, high unemployment and hopelessness. And how the United States today has the best economy and is a global leader.
But both movements have something hugely in common – the zeal for cultural disruption.
Remember what punk’s Rotten, whose real name is John Lydon, once said, “Don’t accept the old order. Get rid of it.”
That could have come from Trump on any day of the week. Just look at how the early few days of his second administration have been filled with disruptive acts to break down the establishment that he now represents – attacks on migrants, attacks on health research, a flurry of executive orders to undo, reshape and change how American government works.
Imagine how parents and their school-age children feel with the un-American threats of immigration officers lurking in schoolways. Or how Holocaust survivors and families feel when they hear about a big migrant camp in Cuba. Or how cancer patients struggling to survive feel when they hear funding for medical research may be frozen or cut.
The weeks and months ahead will see a continuation of massive thrusts and parries from the Trump administration. It will float trial balloons hither and thither to push envelopes as far as they can until too many people erupt, causing the bullies to back down as they did when they threatened to freeze federal spending.
It’s not going to be pretty. So maybe it’s time for Trump and his smarmy sycophants to bust out the leather, fasten a few safety pins and bounce around in a sweaty mess spewing their new fascist hymn, “Anarchy in the U.S.” Here are the new lyrics, only slightly rewritten:
Right now, heh, heh, heh, heh.
I am an Antichrist
I am an anarchist
Don’t know what I want but I know how to get it
I wanna destroy the passersby
‘Cause I, I wanna be anarchy
No illegals.
Anarchy for the U.S.
It’s coming sometime and maybe
I give a wrong line every single time
Your future dream is a crypto scheme
‘Cause I, I wanna be anarchy
In the country.
How many ways to get what you want?
I use the best, I use the rest
I use the D-O-G-E.
I use anarchy
‘Cause I, I wanna be anarchy
The only way to be.
Is this the N-I-H?
Or is this the F-D-A?
Or is this the E-P-A?
I thought it was the U-S-A
Or just another payday
Or another M-A-G-A.
I wanna be anarchy
And I wanna be anarchy
And I wanna be anarchist
I get pissed. Destroy.
Andy Brack is editor and publisher of the Charleston City Paper and Statehouse Report. Have a comment? Send to: feedback@statehousereport.com
What is this structure?
Here’s an odd-looking outside doo-hickey. What is it? For bonus points, where is it? Send your name, hometown and guess to: feedback@statehousereport.com.
Our most recent mystery, “Snowy scene” showed kids slipping and sliding down Indian Hill at The Citadel on the banks of the Ashley River after the Great January Snow of 2025. Allen Peel of San Antonio, Texas, identified the building as Coward Hall. Others that correctly identified the picture were Lester Dempsey; Dave Shimp of Mount Pleasant; Bill Segars of Hartsville; and Will Williams of Aiken.
- Send us a mystery picture. If you have a photo that you believe will stump readers, send it along (but make sure to tell us what it is because it may stump us too!) Send to: feedback@statehousereport.com and mark it as a photo submission. Thanks.
End gravy train for data centers
To the editor:
Our neighboring state’s Public Service Commission of Georgia has adopted a new rule which will protect Georgia’s individual and small business electric ratepayers from cross-subsidization. Before this rule was implemented, all other ratepayers were having to pay for new data centers who wanted to locate in their state.
It’s past time for the South Carolina legislature to pass a law ending the gravy train for data centers which bring few jobs but many unreasonable demands for new energy. Otherwise, these energy hogs will continue to locate here while expecting the other customers of Santee Cooper, Dominion Energy and Duke Power to pay the entire costs of generating and interconnecting electricity to service these data centers.
– Tom Ervin, Greenville, S.C. Editor’s Note: Ervin is a past member of the S.C. Public Service Commission.
Create transgender bathrooms
To the editor:
I’d like to point out a comment on your editorial about Nancy Mace. I support her ‘rant’ about transgender people (males) being allowed in ladies’ bathrooms. It should not be allowed to happen in my opinion and the opinions of many women.
Yes, there are stalls, but that isn’t the issue. The issue is that there are some who ‘identify as transgender’ and are not. Mothers are changing their babies in many public bathrooms and many are not comfortable with this being allowed. My suggestion? Create transgender bathrooms so everyone can feel safe.
– Kathleen Ryan Martin, Okatie, S.C.
Send us your thoughts
We encourage you to send in your thoughts about policy and politics impacting South Carolina. We’ve gotten some letters in the last few weeks – some positive, others nasty. We print non-defamatory comments, but unless you provide your contact information – name and hometown, plus a phone number used only by us for verification – we can’t publish your thoughts.
- Have a comment? Send your letters or comments to: feedback@statehousereport.com. Make sure to provide your contact details (name, hometown and phone number for verification. Letters are limited to 150 words.
ABOUT STATEHOUSE REPORT
Statehouse Report, founded in 2001 as a weekly legislative forecast that informs readers about what is going to happen in South Carolina politics and policy, is provided by email to you at no charge every Friday.
- Editor and publisher: Andy Brack, 843.670.3996
- Statehouse bureau chief: Jack O’Toole
Donate today
We’re proud to offer Statehouse Report for free. For more than a dozen years, we’ve been the go-to place for insightful independent policy and political news and views in the Palmetto State. And we love it as much as you do.
But now, we can use your help. If you’ve been thinking of contributing to Statehouse Report over the years, now would be a great time to contribute as we deal with the crisis. In advance, thank you.
More
- Mailing address: Send inquiries by mail to: P.O. Box 21942, Charleston, SC 29413
- Subscriptions are free: Click to subscribe.
- We hope you’ll keep receiving the great news and information from Statehouse Report, but if you need to unsubscribe, go to the bottom of the weekly email issue and follow the instructions.
- Read our sister publication: Charleston City Paper (every Friday in print; Every day online)
- © 2025, Statehouse Report, a publication of City Paper Publishing, LLC. All rights reserved.
We Can Do Better, South Carolina!
I understand that a data center once up and running would employ only some 20 people. I don’t think even the Small Business Administration would entertain an application for much support.