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HB 1101

Hatteras-Ocracoke Hovercraft Pilot Program.

2025-2026 Session Introduced by Gloristine Brown and 5 co-sponsors

The bill proposes a two-year hovercraft pilot on the Hatteras-Ocracoke route to test faster travel, reduced dredging, and a visitor-fee model to fund operations.

Passed 1st Reading
0
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Bill Summary · HB 1101

Summary of HB 1101 (2025 Session) – Hatteras-Ocracoke Hovercraft Pilot Program (North Carolina)

Main purpose

HB 1101 would establish a two-year pilot program within the North Carolina Department of Transportation (NCDOT), Ferry Division, to test replacing the existing Hatteras-Ocracoke diesel ferry service with hovercraft or air cushion vehicle (ACV) ferries. The act also directs a feasibility study on long-term dredging cost reductions, potential retirement or repurposing of the diesel fleet, and the viability of a visitor-fee model to support operations.

Key provisions

  • Pilot Program Establishment (Section 1(a)): NCDOT’s Ferry Division must establish and operate a hovercraft/ACV pilot on the Hatteras-Ocracoke route to evaluate feasibility of replacement for the diesel ferries used on this route.

  • Purpose and Goals (Section 1(b)):

    • Improve travel times between Hatteras Island and Ocracoke Island.
    • Reduce dependence on routine dredging of the Hatteras Inlet channel and achieve long-term dredging savings.
    • Assess retirement or repurposing of the current diesel ferry fleet servicing the route.
    • Explore a tiered fee-for-ride model that is free for residents and charges visitors, with revenues supporting the Ferry Fund.
  • Procurement (Section 1(c)): The Ferry Division must issue a Request for Proposal (RFP) to lease or purchase hovercrafts/ACVs appropriate for passenger and light vehicle service under the route’s environmental conditions.

  • Operations and Duration (Section 1(d)):

    • The pilot must run for a minimum of two years from the vessel’s launch.
    • Implement a tiered fare structure: island residents ride free; visitors pay a reasonable fee; revenues credited to the Ferry Fund.
    • diesel ferries displaced by the pilot may continue operating for commercial vehicles only during the pilot period.
  • Feasibility Study (Section 1(e)):

    • Economic, environmental, and operational implications of a permanent hovercraft transition.
    • Long-term cost savings from reduced dredging.
    • Feasibility of retiring the diesel fleet or dedicating it to commercial vehicle transport.
    • Financial viability and tourism impacts of a visitor-fee model.
  • Reporting (Section 1(f)):

    • Interim report to the Joint Legislative Transportation Oversight Committee and the Fiscal Research Division by March 1, 2027.
    • Final report by December 1, 2027.
  • Funding (Section 2): A one-time appropriation of $25,000,000 from the General Fund to the Ferry Division for Fiscal Year 2026-2027 to implement the act.

  • Effective Date (Section 3): July 1, 2026.

Who/what would be affected

  • The NCDOT Ferry Division would implement and operate the hovercraft pilot.
  • Hatteras Island and Ocracoke Island residents and visitors using the Hatteras-Ocracoke ferry route.
  • The existing diesel ferry fleet servicing this route (potential retirement or repurposing) and any associated commercial vehicle operations during the pilot.
  • Ferry funding and operations would be influenced by the proposed resident-free, visitor-fee revenue model.

Timeline and procedural notes

  • Pilot duration: at least two years from vessel launch.
  • Interim report due: March 1, 2027.
  • Final report due: December 1, 2027.
  • Funding available: $25 million nonrecurring for 2026-2027.
  • Effective date: July 1, 2026.

Potential impact and considerations

  • If successful, could shorten travel times and reduce dredging costs, potentially transforming long-term transportation on the Hatteras-Ocracoke route.
  • Financial viability hinges on the visitor-fee model and overall lifecycle costs of hovercraft/ACV operations.
  • Environmental and navigational considerations in Hatteras Inlet will be central to procurement and operations.

Compiled from official sources — confirm details with the bill’s official record.

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