By Matt Tomsic
mtomsic@scbiznews.com
Published Feb. 22, 2012

The state House Ways and Means Committee included a reserve fund for the project to deepen Charleston Harbor in a list of amendments that passed the full committee Tuesday.

The House Ways and Means Committee included a reserve fund for the Charleston Harbor deepening project in a list of amendments that passed Tuesday.

Rep. Jim Merrill, R-Daniel Island, sponsored the amendment, which will create the Harbor Deepening Reserve Fund within the S.C. State Ports Authority.

The reserve fund includes $180 million in non-recurring funds to be used for deepening the state's harbors, including the Charleston Harbor deepening project. The fund is separate from the General Fund and interest from the fund must remain in it, according to the amendment.

Expenditures from the fund must be approved by the General Assembly.

Jim Newsome, president and CEO of the ports authority, and Bill Stern, chairman of the ports authority board, praised the fund’s inclusion.

“Modernizing our harbors is essential to meet the demands of global trade and to fulfill the ports authority’s mission of fostering economic activity and job creation in our state,” Newsome and Stern said in a joint statement released Tuesday night. “The Charleston Harbor Deepening Project offers the best value for a true post-Panamax harbor in the entire Southeast region, and we commend the Ways and Means Committee for their strong support for a deepened shipping channel in Charleston.”

Allison Skipper, a spokeswoman for the ports authority, said the money would be used for construction costs associated with deepening Charleston Harbor beyond 45 feet. The state would be responsible for about 60% of the total cost — $300 million — of construction. The federal government pays the remaining 40%.

The project is now in the study phase, which is expected to take between five and eight years. The study phase began last June, and the ports authority is covering the costs of the study.