![](media/image1.png){width="0.8902777777777777in"
height="0.8541666666666666in"}

##### 

Subject: **[ACTION]{.underline}**: South Carolina -- Interstate System
Construction

> Toll Pilot (ISCTP) Program - SAFETEA-LU, Section 1604(c) Candidate
> Application Conditional Approval
>
> ![](media/image2.png){width="1.875in" height="0.5118055555555555in"}

From: Dwight A. Horne

> Director, Office of Program Administration

To: Robert Lee

Division Administrator

Columbia, SC

> This memorandum is in response to the South Carolina Department of
> Transportation's (SCDOT) application for the Interstate System
> Construction Toll Pilot (ISCTP) program under section 1604(c) of the
> Safe, Accountable, Flexible, Efficient Transportation Equity Act: A
> Legacy for Users (SAFETEA-LU). At this time, SCDOT's application does
> not contain all of the information required for eligibility under the
> ISCTP program as outlined in section 1604(c)(3) of SAFETEA-LU.
> However, given the information available in the application, as well
> as SCDOT\'s progress in the development of this project, we are
> granting SCDOT's application a "conditional acceptance\" pending the
> completion of all application requirements. Under this \"conditional
> acceptance\" we are agreeing to reserve one of the three pilot slots
> for I-73 and allow SCDOT to proceed with the expectation that they
> will complete all requirements before we give our final approval.
> Please note that the reservation of a slot under this program is not
> specific to South Carolina but applies to all of I-73. Thus, if
> additional States meet the program requirements and wish to construct
> their portion of I-73 as a toll project, they may apply under this
> slot.
>
> With respect to the application, the following additional items will
> need to be addressed prior to a final acceptance under this program:

-   The designated metropolitan planning organization for the area must
    be consulted concerning the placement and amount of tolls on the
    facility \[see SAFETEA-LU, section 1604(c)(3)(B)\], and

-   A facility management plan must be developed in accordance with
    SAFETEA-LU, section 1604(c)(3)(D).

> Also note that in accordance with the Selection Criteria \[SAFETEA-LU,
> section 1604(c)(4)\], the State must develop, manage, and maintain a
> system that will automatically collect tolls. The State must also
> demonstrate that they have given preference to the use of a public
> toll agency with demonstrated capability to build, operate, and
> maintain a toll expressway system meeting criteria for the Interstate
> System.
>
> Upon environmental clearance (which would include evaluation of the
> impacts of tolling), the facility segments will become eligible to be
> considered for final approval under the pilot program, provided all
> other provisions have been satisfactorily addressed as outlined above.
>
> This "conditional acceptance\" of I-73 as one of the pilot facilities
> is based on the assumption that a satisfactory timeline for subsequent
> actions will be developed, the proposal continues to advance in a
> timely manner, environmental clearances are appropriately obtained,
> and a toll agreement is executed between SCDOT and FHWA under the
> provisions of SAFETEA-LU, Section 1604(c)(6). This agreement, which
> must be executed prior to the FHWA\'s final approval to toll any
> portion or segment of the candidate facility, must provide for regular
> audits and that any toll revenues received from operation of the
> facility will be used in accordance with the requirements set forth in
> Section 1604(c)(6) prior to tolling. This agreement is to be
> coordinated with the Office of Program Administration (HIPA-10) and
> the Office of Chief Counsel (HCC-30).
>
> Additionally, SAFETEA-LU, Section 1604(c)(7) requires a limitation on
> the use of Interstate Maintenance (IM) funds during the term of the
> pilot program. Funds apportioned for IM under Section 104(b)(4) of
> Title 23, United States Code, may not be used on any segment being
> tolled. The IM restriction would apply to general lanes as well as any
> special purpose lanes, while tolls are being collected under the pilot
> program.
>
> Please feel free to contact Greg Wolf, of my staff at (202) 366-4655,
> should you have any questions or concerns about the approval contained
> in this memorandum.