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The Autonomous Vehicle Revolution Fostering Innovation with Smart Regulation

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The Autonomous Vehicle Revolution Fostering Innovation with Smart Regulation THE AUTONOMOUS VEHICLE REVOLUTION FOSTERING INNOVATION WITH SMART REGULATION MARCH 2017 The Center for the Study of the Presidency and Congress, founded in 1965, is a nonprofit, nonpartisan 501(c)(3) organization. The Center’s mission is to utilize the lessons of history to address the challenges of today; serve as a strategic honest broker for discussions with leaders from government, the private sector, and the policy community; and to educate the next generation of leaders through the Presidential and International Fellows Program. THE AUTONOMOUS VEHICLE REVOLUTION: FOSTERING INNOVATION WITH SMART REGULATION March 2017 Copyright © 2017 CENTER FOR THE STUDY OF THE PRESIDENCY & CONGRESS All rights reserved. No portion of this report may be reproduced, by any process or technique, without the express written consent of the publisher. Published in the United States of America. Selected Cover Image Credits: Silver Blue, Flickr; Jennifer Morrow, Flickr; Wikimedia Commons 601 Thirteenth Street, NW – Suite 1050N Washington, D.C. 20005 Phone: 202-872-9800 Fax: 202-872-9811 www.thePresidency.org Copyright © 2017 All rights reserved THE AUTONOMOUS VEHICLE REVOLUTION: FOSTERING INNOVATION WITH SMART REGULATION PROJECT DIRECTORS: MAXMILLIAN ANGERHOLZER III DAN MAHAFFEE LEAD RESEARCHER: MADELINE VALE PROJECT ADVISORS: JAMES KITFIELD HURST RENNER WASHINGTON, D.C. MARCH 2017 TABLE OF CONTENTS INTRODUCTION .................................................................................................................. 1 REPORT FINDINGS .............................................................................................................. 2 The Promise of Autonomous Vehicles ........................................................................................................................... 3 Safety ................................................................................................................................................................................................ 3 Efficiency ........................................................................................................................................................................................... 4 Accessibility & Opportunity .............................................................................................................................................................. 5 The Political & Regulatory Factors ................................................................................................................................ 5 An Innovation-Friendly Regulatory Environment ............................................................................................................................. 6 NHTSA’s Regulatory Role ................................................................................................................................................................. 7 Other Federal Agencies .................................................................................................................................................................... 9 The Role of Congress ...................................................................................................................................................................... 10 State-Level Regulation & Policy ...................................................................................................................................................... 11 REPORT RECOMMENDATIONS ......................................................................................... 14 THE FEDERAL ROLE .......................................................................................................... 18 NHTSA’s Findings & Automated Vehicle Policy .......................................................................................................... 18 FCC & V2X Technology ............................................................................................................................................... 22 The Cybersecurity Discussion ...................................................................................................................................... 22 Congressional Attention .............................................................................................................................................. 23 SELECTED STATE-LEVEL POLICIES .................................................................................... 26 California ...................................................................................................................................................................... 26 Washington .................................................................................................................................................................. 28 PLANNING FOR THE FUTURE ........................................................................................... 30 The Economic Impact .................................................................................................................................................. 30 Urban Planning ............................................................................................................................................................. 31 Rural Transportation .................................................................................................................................................... 32 CONCLUSION .................................................................................................................... 33 ENDNOTES ........................................................................................................................ 35 ACKNOWLEDGEMENTS .................................................................................................... 37 CSPC BOARD OF TRUSTEES .............................................................................................. 38 INTRODUCTION A future in which autonomous motor vehicles are capable of picking up passengers, navigating suburban, urban, and rural streets, and automatically reacting to roadway obstacles is not that far away. Already, various models of autonomous vehicles are being tested in research facilities and, increasingly, on public roadways. While automated vehicles were once relegated to the realm of science fiction, aspects of autonomous vehicle technology are already incorporated into a wide range of vehicles—even if many drivers don’t yet realize it. The commercialization of this technology will dramatically alter our nation’s transportation network. In the short term, it will impact transportation safety, efficiency, and accessibility. This technology will also create second-and-third-order effects related to jobs, urban planning, economic models, and roadway rules and regulations. Along with the many benefits of this technology, it will raise public concerns about the safety of these vehicles on public roadways, and the potential displacement of jobs related to transportation. For policymakers, the most pressing challenges will involve crafting a regulatory regime that fosters innovation, ensures safety, and balances the equities of stakeholders at the federal, state, and local levels. To address this challenge, the Center for the Study of the Presidency & Congress (CSPC) convened off-the-record roundtables in Washington, D.C.; San Francisco, California; and Seattle, Washington. Our goal was to begin a dialogue between the government and private sectors about this transformative technology and to identify solutions to potential problems. During these discussions, project participants discussed the role of the Federal Government— particularly the authorities of the National Highway Traffic Safety Administration (NHTSA) and the “Federal Automated Vehicles Policy” released in September of 2016. Policy options within the NHTSA document, as well as other proposals currently being discussed, have the potential to either broaden the testing opportunities needed to develop this technology, or else unnecessarily stifle innovation through overly complex and restrictive regulatory regimes. Participants also discussed how the development and deployment of autonomous vehicles would be unnecessarily impeded if states fail to harmonize their regulations, resulting in interference in federal safety authority or in a patchwork of incompatible regulations across the 50 states and the District of Columbia. In addressing these and other policy challenges, the way forward is clear—to fully realize the many benefits of autonomous vehicles, the United States needs to foster a regulatory environment that encourages innovation and places technical solutions—rather than regulatory action—at the forefront of a new transportation paradigm. 1 REPORT FINDINGS The development of autonomous vehicles presents a clear challenge for policymakers, given that the rate of technological change is rapidly outpacing a regulatory regime based on more than a century of human operation of motor vehicles. While many of these technologies are in their infancy, they are already being incorporated into vehicles to assist drivers. Players ranging from traditional automakers to major tech companies to small startups are developing prototype vehicles that operate with little-to-no human input. The advent of this technology and its increased testing in anticipation of deployment on public roadways has raised unresolved issues related to regulation, liability,
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