Hatteras-Ocracoke Hovercraft Pilot Program.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1101

Short Title: Hatteras-Ocracoke Hovercraft Pilot Program. (Public)
Sponsors: Representative Reives.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
April 30, 2026
*H1101-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH A PILOT PROGRAM WITH IN THE NORTH CAROLIN A 2
DEPARTMENT OF TRANSP ORTATION, FERRY DIVI SION, TO OPERATE A 3
HOVERCRAFT FERRY ON THE HATTERAS-OCRACOKE ROUTE AND TO STUDY 4
THE LONG -TERM FEASIB ILITY OF REDUCING DR EDGING COSTS AND 5
REPLACING THE OBSOLESCING DIESEL FERRY FLEET. 6
The General Assembly of North Carolina enacts: 7
SECTION 1.(a) Pilot Program Established. – The Department of Transportation, 8
Ferry Division (Ferry Division), shall establish and operate a hovercraft pilot program to evaluate 9
the feasibility of replacing the ferry fleet servicing the Hatteras -Ocracoke route with hovercraft 10
or air cushion vehicle (ACV) ferries. 11
SECTION 1.(b) Purpose. – The purpose of the pilot program is to: 12
(1) Improve travel times between Hatteras Island and Ocracoke Island. 13
(2) Reduce reliance on routine dredging of the Hatteras Inlet channel and achieve 14
long-term savings in dredging expenditures. 15
(3) Evaluate the potential to retire or repurpose the current diesel ferry fleet on 16
this route. 17
(4) Determine whether a fee-for-ride model, that is free for residents and charges 18
a fee for visitors, can p rovide a sustainable revenue stream to offset 19
operational costs. 20
SECTION 1.(c) Procurement. – The Ferry Division shall issue a Request for 21
Proposal (RFP) for the lease or purchase of one or more hovercrafts or ACVs suitable for 22
passenger and light vehicle service under the unique environmental conditions of Hatteras Inlet. 23
SECTION 1.(d) Operations. – The pilot program shall operate for a minimum of 24
two years from the date the vessel is launched. 25
(1) The Ferry Division shall design and implement a tiered fare structure whereby 26
island residents ride free of charge and visitors are charged a reasonable fee, 27
with revenues credited to the Ferry Fund. 28
(2) The Ferry Division may continue to operate any diesel ferries whose service 29
is displaced by the service provided by the pilot ferry for commercial vehicles 30
only during the pilot program period. 31
SECTION 1.(e) Feasibility Study. – The Ferry Division shall conduct a feasibility 32
study evaluating: 33
(1) The economic, environmental, and operational impacts of transitio ning the 34
Hatteras-Ocracoke route to hovercraft service permanently. 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1101-First Edition
(2) The long-term cost-savings from the reduced dredging operations. 1
(3) The practicality of retiring the existing diesel ferry fleet or dedicating it solely 2
to commercial vehicle transport. 3
(4) The financial viability of a visitor fee -based model, including impacts on 4
tourism. 5
SECTION 1.(f) Report. – The Ferry Division shall submit to the Joint Legislative 6
Transportation Oversight Committee and the Fiscal Research Division an interim repo rt on the 7
study required by Section 1(e) of this act by March 1, 2027, and a final report by December 1, 8
2027. 9
SECTION 2. There is appropriated from the General Fund to the Department of 10
Transportation, Ferry Division, for the 2026 -2027 fiscal year the su m of twenty -five million 11
dollars ($25,000,000) in nonrecurring funds to implement the requirements of this act. 12
SECTION 3. This act becomes effective July 1, 2026. 13