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NTC Consultation Regulation Impact Statement -Safety Assurance For SAFETY ASSURANCE FOR AUTOMATED DRIVING SYSTEMS CONSULTATION REGULATION IMPACT STATEMENT May 2018 Report outline Safety Assurance for Automated Driving Systems: Consultation Title Regulation Impact Statement Type of report Regulation Impact Statement Purpose For public consultation Abstract This Consultation Regulation Impact Statement outlines three key problem risks that need to be addressed to ensure the safe commercial deployment of automated vehicles in Australia. It also identifies and assesses the relative costs and benefits of four options to address the key problem risks. Finally, this paper invites public submissions on the analysis of options and sets out the next steps towards developing a decision Regulation Impact Statement in November 2018. Submission Submissions will be accepted until Monday 9 July 2018 online at details www.ntc.gov.au or by mail to: Attn: Automated Vehicle Team National Transport Commission Level 3/600 Bourke Street Melbourne VIC 3000 Key words Automated driving systems, automated driving system entities, automated vehicles, costs benefit analysis, primary safety duty, Regulation Impact Statement, safety assurance system, sanctions and penalties, Statement of Compliance. Contact National Transport Commission Level 3/600 Bourke Street Melbourne VIC 3000 Ph: (03) 9236 5000 Email: [email protected] www.ntc.gov.au Safety Assurance for Automated Driving Systems: Consultation Regulation Impact Statement May 2018 ii How to make a submission Who can make a submission? Any individual or organisation can make a submission to the National Transport Commission (NTC). How to submit To make an online submission please, visit the NTC homepage (www.ntc.gov.au) and select ‘Submissions’ from the top navigational menu. Alternatively, you can mail your comments to: Attn: Automated Vehicle Team National Transport Commission Level 3/600 Bourke Street Melbourne VIC 3000 Publication of submissions Unless submissions clearly request otherwise, all submissions will be published on the NTC’s website. Submissions that contain defamatory or offensive content will not be published. The Freedom of Information Act 1982 (Cwlth) applies to the NTC. Safety Assurance for Automated Driving Systems: Consultation Regulation Impact Statement May 2018 iii Contents Report outline ii How to make a submission iii Contents iv Executive summary 1 1 Context 4 1.1 Introduction – what are automated vehicles? 4 1.2 Background 5 1.2.1 Road crashes in Australia 5 1.2.2 Benefits and risks of automated vehicles 5 1.2.3 Regulatory environment 6 1.2.4 National reform program for automated vehicles 6 1.2.5 The safety assurance system for automated vehicles project 9 1.2.6 Design features of the proposed safety assurance system 10 1.2.7 International developments 11 1.3 About this consultation Regulation Impact Statement 12 1.3.1 Objectives 12 1.3.2 Scope 13 1.3.3 Structure 13 1.4 Key terms and concepts 14 2 Problem statement and need for government intervention 16 2.1 The problem 16 2.2 ADSs may fail to deliver reasonable safety outcomes 16 2.2.1 Existing regulations to manage safety risk 17 2.2.2 Evidence of automated vehicle safety risk 17 2.3 Lack of consumer confidence in ADS safety may reduce or delay their uptake 20 2.3.1 Evidence that lack of consumer confidence in ADS safety may reduce or delay their uptake 20 2.4 ADSEs may face inconsistent and/or uncertain regulation to supply ADSs in the Australian market 21 2.4.1 Evidence of inconsistent and/or uncertain regulation to supply ADSs 22 2.5 Need for government intervention 22 3 Options to address the problem 24 3.1 Introduction 24 3.2 Options 25 3.3 Option 1: Current approach (the baseline option) 26 3.3.1 Description of the option 26 3.3.2 How it would work 26 Option 2: Administrative safety assurance system 27 3.3.3 How it would work 28 3.4 Option 3: Legislative safety assurance system 28 3.4.1 Description of the option 28 Safety Assurance for Automated Driving Systems: Consultation Regulation Impact Statement May 2018 iv 3.4.2 How it would work 29 3.5 Option 4: Legislative safety assurance system + primary safety duty 30 3.5.1 Description of the option 30 3.5.2 Primary safety duty 31 3.5.3 How it would work 31 3.5.4 Parties covered by the primary safety duty 32 4 Proposed safety criteria for the Statement of Compliance 33 4.1 Context 33 4.2 Overview 33 4.3 Principles-based safety criteria: requirements for the Statement of Compliance 34 4.3.1 Safe system design and validation processes 34 4.3.2 Operational design domain 34 4.3.3 Human-machine Interface 34 4.3.4 Compliance with relevant road traffic laws 35 4.3.5 Interaction with enforcement and other emergency services 35 4.3.6 Minimal risk condition 35 4.3.7 On-road behavioural competency 35 4.3.8 Installation of system upgrades 35 4.3.9 Testing for the Australian road environment 36 4.3.10 Cybersecurity 36 4.3.11 Education and training 36 4.4 Other obligations on ADSEs: requirements for the Statement of Compliance 37 4.4.1 Data recording and sharing 37 4.4.2 Corporate presence in Australia 37 4.4.3 Minimum financial requirements 37 5 Method for assessing the options 38 5.1 Multi-criteria analysis approach 38 5.1.1 Timeframe for assessment 39 5.2 Impact categories and assessment criteria 39 5.2.1 Choice of road safety assessment criteria 41 5.2.2 Choice of uptake assessment criteria 41 5.2.3 Choice of regulatory costs to industry assessment criteria 42 5.2.4 Choice of regulatory costs to government assessment criteria 42 5.2.5 Choice of flexibility and responsiveness assessment criteria 42 5.3 Individuals and groups likely to be affected 43 5.4 Multi-criteria analysis 44 6 Assessment of the options 46 6.1 Assessment provided in this chapter 46 6.2 Road safety impacts 46 6.2.1 Assessment of options against road safety assessment criteria 47 6.3 Uptake impacts 49 6.3.1 Assessment of options against uptake assessment criteria 49 6.4 Regulatory costs to industry impacts 50 Safety Assurance for Automated Driving Systems: Consultation Regulation Impact Statement May 2018 v 6.4.1 Assessment of options against regulatory costs to industry assessment criteria 51 6.4.2 Summary of regulatory costs to industry impact assessment 53 6.5 Regulatory costs to government impacts 54 6.5.1 Assessment of options against regulatory costs to government assessment criteria 55 6.6 Flexibility and responsiveness impacts 56 6.6.1 Assessment of options against flexibility and responsiveness assessment criteria 56 7 Summary of assessment and preferred option 58 7.1 Summary of multi-criteria analysis 58 7.1.1 Comparing costs and benefits of the reform options 60 7.2 Impacts of options under various automated vehicle uptake scenarios 60 7.2.1 Summary of scenario analysis 63 7.3 Relevant factors for government in choosing an option 63 7.3.1 The NTC’s view on relevant factors for government 65 7.4 Conclusion – provisionally preferred option 65 8 Consultation and next steps 67 8.1 Comment sought on the consultation RIS 67 8.2 Consultation questions 67 8.3 When to submit 68 8.4 How to submit 68 8.5 Next steps 68 Appendix A Safety risks associated with automated vehicles 69 A.1 Design risks 69 A.2 Organisational risks 69 A.3 Operational/use risks 69 Appendix B Compliance and enforcement for safety assurance 71 B.1 Compliance and enforcement measures relating to safety assurance 71 B.2 Sanctions and penalties relating to primary safety duty offences 73 Appendix C Proposed safety criteria for the Statement of Compliance 76 C.1 Principles-based safety criteria 77 C.1.1 Safe system design and validation processes 77 C.1.2 Operational design domain 78 C.1.3 Human-machine interface 79 C.1.4 Compliance with relevant road traffic laws 79 C.1.5 Interaction with enforcement and other emergency services 80 C.1.6 Minimal risk condition 81 C.1.7 On-road behavioural competency 81 C.1.8 Installation of system upgrades 82 C.1.9 Testing for the Australian road environment 83 C.1.10 Cybersecurity 84 C.1.11 Education and training 84 C.2 Select criteria that have not been included 85 C.2.1 Ethical considerations 85 Safety Assurance for Automated Driving Systems: Consultation Regulation Impact Statement May 2018 vi C.2.2 Crashworthiness 86 C.3 Other obligations on ADSEs 87 C.3.1 Data recording and sharing 87 C.3.2 Corporate presence in Australia 88 C.3.3 Minimum financial requirements 89 C.4 Obligations that have not been included 89 C.4.1 Privacy 89 C.5 Provisions that could be captured in legislation 90 C.5.1 Reporting obligations 90 Appendix D Existing road safety laws and regulations 91 D.1 The Motor Vehicle Standards Act and the Road Vehicle Standards Act 91 D.2 Australian Design Rules 92 D.3 Registration and roadworthiness 92 D.4 Licensing 93 D.5 Australian Consumer Law 93 D.6 International regulations on automatically commanded steering function 94 Appendix E Testing the materiality of the key benefits 95 E.1 Results of materiality tests 95 E.2 Materiality of road safety outcomes 95 E.3 Materiality of automated vehicle uptake outcomes 98 Appendix F Costs to government 100 F.1 Assessment of options against the costs to government assessment criteria 100 Appendix G Research on the expected benefits of automated vehicles 106 G.1 Safety benefits 106 G.2 Projected road safety baseline 107 G.3 Costs of crashes 108 G.4 Other benefits 108 Appendix H Automated vehicle uptake 113 H.1 Increasing automation in vehicles 113 H.2 Complexity of the automated vehicle market 113 H.3 Commercial availability of automated vehicles 114 H.4 Effect of cost on uptake of automated vehicles 115 H.5 Predicted automated vehicle uptake 115 Appendix I Ongoing cost estimates for existing administrative processes 121 Glossary 122 References 124 Safety Assurance for Automated Driving Systems: Consultation Regulation Impact Statement May 2018 vii List of tables Table 1.
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