Automated vehicles (AVs)… self-driving cars… driverless cars… Whatever terminology you prefer, they’re here and no longer a figment of your imagination.

Fully automated vehicles will be hitting the market in 2020.

There really haven’t been any official regulations or policies for AVs, except a statement released from the National Highway Traffic Safety Administration (NHTSA) in 2013.

The U.S. Department of Transportation (DOT) knew it was time to release something official. So on September 19th, it introduced the “Federal Automated Vehicles Policy.”

Another huge factor behind releasing something more official was to speed up the development and deployment of AVs. 

There are 38,000 traffic fatalities a year in the U.S., and 95% of those fatalities are caused by human error. If we remove human drivers from the scenario and replace them with AVs, we’ll start to see a decrease in fatalities.

Automated vehicles will benefit the public’s safety, mobility, and sustainability.

The Federal Automated Vehicles Policy

You can find the DOT’s Federal Automated Vehicles Policy here.

The document consists of four sections, which include policies for the vehicles and automakers, the responsibilities for the federal and state governments, and current and modern regulatory tools.

The document mainly focuses on policies for highly automated vehicles (HAVs) — vehicles that take full control of driving tasks (in some circumstances).

However, these policies still affect lower levels of automation and driver-assistance systems that already exist in vehicles today.

Vehicle Performance Guidance

The first section provides guidance on maintaining safe development and design for AVs, while also imposing a 15-point safety assessment to clearly indicate the type of expectations manufacturers will need to follow.

This is just the beginning for AV policies, so naturally questions and concerns will arise when the vehicles are officially released.

The DOT and NHTSA have already committed to reviewing the 15-point safety assessment annually and making any necessary changes they see fit. With this type of technology, it’s important to have public safety as a top priority, while also remaining the lead in the market.

Model State Policy

Where would we be without regulation?

The second section outlines how state and federal governments play a role in HAVs and what their responsibilities will be.

Basically, the state keeps true to its traditional responsibilities for vehicle licensing and registrations, traffic laws and enforcements, and regulating vehicle insurance and liability.

The federal government will have the authority to set and enforce safety standards, communicate with the public about safety standards, and issue guidance on meeting national standards.

Regulatory Tools

The communication from the DOT and NHTSA can be very time-consuming for automakers, sometimes taking up to a few months or even a few years.

Waiting a long time to hear back from these two departments could really hurt the U.S.’s lead in a new market.

To make sure this doesn’t happen, the DOT has promised that it will speed up any communications with automakers in regards to HAVs. Alongside the DOT, NHTSA has pledged to respond within 60 days about anything HAV-related.

New technology means new regulatory tools.

In the last section of the document, the DOT lists new authorities and tools that’ll be needed to ensure the deployment of automated vehicles is safe and sufficient.

Obviously, these agencies can’t get away with using the same policies that have been used for the last several decades.

We’re talking about an entirely new technology. These agencies need to be prepared and ready for what’s coming their way.

2020 is only four years away… the time to prepare is now. That means the DOT and NHTSA need to work closely with automakers to establish policies that will provide safety.

The Year 2020

Right now, there are 19 companies that are aiming to have driverless car technology ready by 2020.

Tesla (NASDAQ: TSLA) is aiming to have its fully automated car on the road by 2018.

Uber has teamed up with Volvo, and its autonomous car hit the streets of Pittsburgh in August. This ride is supervised by one human who sits in the driver seat, but supervising is the only thing they’re doing. There’s no doubt we can expect a fully automated Uber ride in the near future.

Google (NASDAQ: GOOGL) is also working on a 2020 deadline.

If you weren’t convinced before, you should be now. The Department of Transportation is preparing us for a life with automated vehicles.

It’s all coming together. 

Until next time,

Jennifer Clark
Pro Trader Today