Rachel Koch contributed to this article.
In last week’s post, we discussed the impact that the future of mobility will have on communities, and how the decisions we make over the next decade will have lasting, compounding effects on the evolution of transportation in our daily lives. In this post, we will discuss how governments at the state and federal level have the opportunity to help shape the future of the transportation landscape. And while the future of mobility will be shaped by a series of converging trends, today we’ll focus on efforts to promote innovation in autonomous vehicle technology.
What is the role of Government?
In Deloitte’s Federal practice, we like to think about government in the future of mobility along a spectrum. This includes users, researchers and developers, and regulators. Where a particular player falls on the spectrum depends on their relationship with autonomous vehicle technology. Currently, we are taking a deeper dive into the role that government can play in the future of mobility as a regulator, and gaining a better understanding of where they fall on the spectrum. Traditionally, government’s main role as a regulator has been to establish and enforce transportation safety standards, and while this aspect will certainly continue, we see an opportunity for government to help foster innovations in transportation and promote advances in sustainability and accessibility, in addition to ensuring consumer and public safety.
What will be regulated?
One of the most commonly voiced concerns about the presence of autonomous vehicles on the road is liability – without a human in the driver’s seat, who is liable in the case of an accident? (For more on the insurance implications of autonomous vehicle liability, see Deloitte’s recent study.) While this is an important question that still needs to be resolved, it is only one of a number of complex aspects of autonomous vehicles that will need to be regulated. Given the intricacies of the technology involved, such as increased connectivity and data-sharing, as well as the challenges posed by the existing patchwork of transportation regulations in the U.S., we envision four main areas where regulations can be targeted to have the greatest impact on promoting innovation and ensuring safety on our roads:
1. Vehicle Standards
What standards should exist for the design, testing and implementation of autonomous vehicles? Most autonomous vehicle legislation that has been proposed by states currently falls into this regulation category. Many states have regulations that specify vehicle components that must exist and be present in any vehicle, such as a steering wheel and brake pedal that can be activated in case of emergency by a driver. Some states also require that visual indicators be present in the vehicle to identify when it is in autonomous mode.
2. Driver Behavior
What are the rules governing driver interactions with the vehicle, with other drivers, and with infrastructure? The most consistent legislation related to driver behavior concerns whether a human operator must be present within the vehicle, and whether the human operator must be alert and able to take manual control of the vehicle immediately if necessary. Some states have created additional requirements around licensing and insurance for autonomous vehicle owners. This is a main focus of legislation moving forward and has sweeping implications for the potential users and uses of driverless vehicles.
3. Safety & Liability
What safety rules must be in place for autonomous driving, and who is liable for accidents involving autonomous vehicles? How is liability distributed between the vehicle owner, the original equipment manufacturer, and the third-party autonomous system installer? Most safety regulations currently focus on vehicle manufacturing standards by requiring safety mechanisms such as failure alert systems and ignition interlock devices.
4. Cyber Security
Given the complexity and quantity of new tech that will need to exist to support autonomous vehicles—and the potential risks should a vehicle be compromised—what data security requirements are needed? While some states, including California, Oregon and Tennessee, have proposed regulation on how long “black box” data relating to accidents must be stored, there are virtually no regulations around cyber security requirements for autonomous vehicles and their supporting systems. Moving forward, regulation will need to take into consideration the uses and security of data not only collected by individual vehicles but shared between vehicles and infrastructure.
What are the current regulations?
A number of states are leading the nation in legislation aimed at paving the way for autonomous vehicles. Nevada announced in January that it would dedicate resources through the Governor’s Office of Economic Development toward the autonomous car industry and that a center for autonomous vehicles would be created to assist companies looking to test or build their vehicles in Nevada.
With legislation introduced in late May and the University of Michigan’s MCity driverless vehicle test location, Michigan hopes to be the go-to location for driverless vehicle testing. Enacting of the recent legislation would make it a national model for promoting innovation and development in autonomous vehicle manufacturing.
Most recently, Florida enacted a transportation bill allowing someone with a valid drivers’ license to drive an autonomous vehicle on public roads. The states enacting legislation promoting the testing and operation of autonomous vehicles are in fierce competition for the economic benefits to be gained by attracting original equipment manufacturers, suppliers and other automotive industry players.
As state governments continue to lead the way on regulation, challenges posed by interstate travel become readily apparent: what happens when bordering states have conflicting rules governing the operation of autonomous vehicles? Will we see changes in travel patterns around states with gaps in their regulations? How might this impact regional economies? How will the federal government ensure safety on federal highways amid a landscape of varied state regulations, and what should the federal government’s role be in promoting innovations in autonomous vehicle technology?
What’s next?
This summer, we are expecting to see new guidance on autonomous vehicles issued by the National Highway Traffic Safety Administration (NHTSA), which is the federal agency charged with enforcing federal motion vehicle safety standards. But until the scope and depth of those recommendations are known, we will continue to see uncertainty around how regulation will impact the future of mobility. A key question for regulators will continue to be: how can governments both protect citizens and ensure safety on roadways, while promoting the innovations in autonomous vehicle technology that will drive our future economy?
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