State of Regulatory Action on Self-Driving Vehicles in the U.S.

Autonomous vehicles no longer belong in science-fiction movies.

The industry is developing at a fast pace, and tech startups and car manufacturers are focused on propelling the testing of autonomous vehicles with the goal of putting self-driving cars on U.S. roads by 2021.

In this quickly moving field, the U.S. government and state authorities are making an effort to catch up with autonomous-vehicle regulations. The priority for lawmakers is to ensure both safety for citizens on the road and set high standards in the newly evolving industry.

The U.S. government already has taken some steps to create a legal framework for autonomous vehicles. Its efforts have been focused mainly on creating the 5-level system for classification of the self-driving technology, developing a preliminary policy framework and conducting research on self-driving vehicles’ impact. Late last year, the U.S. Department of Transportation proposed a new rule on vehicle-to-vehicle (V2V) communication that can prevent crashes by allowing exchange of information between vehicles.

In January, the DOT approved 10 testing grounds for autonomous vehicles. They are located in nine states: California (with two testing sites), Florida, Iowa, Pennsylvania, Texas, Maryland, Michigan, Wisconsin and North Carolina.

The testing grounds will be used to check the safety of vehicles as well as their performance in different conditions of the roads. The goal of the DOT is to turn the sites into an opportunity for autonomous-vehicle makers to exchange best practices and accelerate development in the field.

It’s no coincidence there will be two testing grounds in California. They are located near Silicon Valley, where big tech companies and budding startups alike are rapidly developing a self-driving-vehicle industry. In April, Apple joined the list of companies allowed to test autonomous cars in the state. Google and a number of other tech businesses have had such permits for some time.

While the U.S. government seeks regulatory action on the federal level, individual states also are taking steps to include autonomous vehicles in their legislation. However, the process is moving at different speed across the states. There is no synchronization of legislation nationwide. Currently, Michigan, Florida, California, Nevada, Tennessee, Arizona and Washington DC, have made testing of self-driving vehicles legal.

Among the states taking a progressive approach on autonomous vehicles, Michigan is leading the way with legislation. In December 2016, the state passed a number of bills that allow the development of the self-driving car industry. Testing and use on public roads, allowed truck platoons, and legal self-driving and ride-sharing are included in the new laws.

While the steps taken by Michigan in the direction of legalizing and regulating the industry are impressive, legislators came under fire from tech companies such as Google, Apple and Uber. The new laws in the state allow only car-making companies to operate autonomous vehicles. To comply with the regulations, the tech giants will need to either work with traditional vehicle manufacturers, or get their prototypes or vehicles approved by NHTSA.

Lawmakers across states are seeking a balance between technological development and security in the development and use of self-driving vehicles. With the quick advancements in the field, they’ve scrambled to keep up with the tempo set by automakerrs and tech companies.

California, Florida and Nevada have introduced special security requirements for car manufacturers testing self-driving vehicles. Companies need to obtain a $5 million insurance policy, a $5 million surety bond or deposit $5 million with the state DMV. Security instruments like surety bonds are used to provide compensation for any damages incurred in the process.

In February 2017, automakers expressed concerns over the level of security required by some states. They would like to prevent overregulation from putting the lid on innovation in self-driving vehicles. While their worries are legitimate, manufacturers still have a chance to have significant input in the lawmaking process and help legislators shape balanced regulations that encourage innovation but protect consumers.

What do you think about the regulatory action on autonomous vehicles taken by the federal and state authorities? Please share your thoughts in the comments.

Todd Bryant is the president and founder of Bryant Surety Bonds.