South Carolina H 4057: Railroad crossing fees

Bill Text

2025-2026 Bill 4057 Text of Previous Version (Feb. 19, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4057

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS 
BY ADDING ARTICLE 12 TO CHAPTER 17, TITLE 58 ENTITLED "UTILITY FACILITIES 
CROSSING OR PARALLELING RAILROADS" SO AS TO DEFINE TERMS; TO ESTABLISH 
APPLICABILITY OF THE ACT; TO REQUIRE A UTILITY TO SUBMIT AN APPLICATION; TO 
PROVIDE STANDARDIZED FEES; TO ALLOW FOR THE CONTINUATION OF EXISTING 
AGREEMENTS; AND TO PROVIDE A DISPUTE RESOLUTION MECHANISM THROUGH THE PUBLIC 
SERVICE COMMISSION.

 Whereas, public utilities 
have a need to construct utility lines, pipes, and other infrastructure across 
or parallel to railroad tracks and other real property owned and/or operated by 
railroad companies in order to serve customers; and

 Whereas, the simplest means 
for public utilities to legally cross or parallel railroad property is by 
entering into a railroad crossing or paralleling license agreement; and

 Whereas, public utilities 
have reported a growing trend of railroad companies charging unreasonably high 
fees and reimbursement expenses in order to secure these license agreements 
through lengthy application processes; and

 Whereas, some railroad 
companies have sold their rights with regard to these license agreements to 
private equity firms who then impose increased annual or otherwise recurring 
fees on public utilities to continue using these license agreements; and

 Whereas, unreasonably high 
and recurring license fees pose a significant hinderance to the financial 
stability of public utilities and to their ability to provide reliable service 
at reasonable prices to customers; and

 Whereas, placing a cap on the 
amount of fees public utilities are required to pay for license agreements 
will: (1) ensure that railroads are sufficiently compensated for the value of 
crossing their land, (2) protect public utilities from being forced to make 
unreasonably high, recurring license payments, and (3) protect utility 
customers from being charged unreasonably high service rates to support 
utilities that are paying excessive annual license fees that are subject to 
additional increases by railroad companies and private equity firms; and

 Whereas, streamlining the 
application process is necessary to ensure timely deployment of utility 
services when crossing or paralleling property owned and/or operated by a 
railroad. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Chapter 17, Title 58 of the 
S.C. Code is amended by adding:

Article 12

Utility 
Facilities Crossing or Paralleling Railroads

 Section 58-17-1510. For 
the purposes of this article:

 (1) "Commission" means the South 
Carolina Public Service Commission.

 (2) "Communication" means telephone 
service including, without limitation, basic local exchange telephone service as 
defined in Section 58-9-10(9), voice over internet protocol, or similar voice 
or voice replacement service, data service, video service, or any information 
service as defined in Section 58-9-200(2).

 (3) "Crossing" means a utility facility 
constructed across a railroad right of way and which is either aerial, 
underground, or a combination of both aerial and underground.

 (4) "Facility" means any item of 
property that is owned by a utility placed across or parallel, whether that be 
aerially or underground or both, to a railroad right of way for use in 
connection with the storage or conveyance of water; stormwater; sewage; 
communications; internet fiber optics; cable television; electric energy; oil; 
gas; or other substances including, but not limited to, pipes, sewers, 
conduits, cables, valves, lines, wires, manholes, vaults, or attachments.

 (5) "License agreement" means any 
contract agreement, easement agreement, license agreement, crossing agreement, 
paralleling agreement, or other legal agreement executed to allow a utility to 
cross or parallel a railroad right of way.

 (6) "Parallel" or "Paralleling" means 
a utility facility that runs adjacent to and alongside the track of a railroad.

 (7) "Public rights of way" means for 
crossings and paralleling facilities that involve railroad rights of way must:

 (a) be determined by the existing 
public rights of way boundaries established by the federal government, the 
State, the county, or the city governing the particular railroad installation 
area; and

 (b) begin from:

 (i) each side of the centerline of 
the roadway or highway center point extending outward; or

 (ii) at the edge of the pavement on 
each side of a roadway or highway and extend outward.

 (c) If the common boundary of the 
public rights of way in the railroad corridor is not delineated in the 
geographic information syste