Implications of Connected and Automated Driving Systems, Vol. 2: State Legal and Regulatory Audit (2018)

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NCHRP 20-102(07) Interim Report 6 Background Both the underlying research question—whether particular state legislative requirements serve as a barrier to the use of C/ADSs on public roadways—and the methods for our investigation are detailed in this section. 2.1 Overview of Automated Technology and Its Implications for Transportation Readers eager to learn more about the technological capabilities or rapid pace of development of C/ADSs will benefit from reading the related literature, such as Dorothy Glancy et al.’s “A Look at the Legal Environment for Driverless Vehicles.”6 However, in order to provide a preliminary orientation for this particular audit, we offer a brief overview of our operating assumptions regarding the approximate pace and nature of the development of C/ADSs. This overview draws heavily from two established reports by the Organization for Economic Co-operation and Development (OECD)7 and the RAND Corporation.8 The “levels” used in this report are SAE International’s levels for ADS-equipped vehicles.9 In general, the literature offers the following projections for penetration of C/ADSs onto public roadways, although given the fast pace of development, some of these benchmarks may come sooner than expected. Note that these projections are for broad time frames.10 In the short-term, analysts predict: • A growing number of vehicles will be equipped with low levels of driving automation systems (level 2), which will include handoff technology. For example, a level 2 driving automation system-equipped vehicle, while engaged, may encounter some emergency (e.g., a police flagman or temporary barrier) that will require the driver to take control. Some of this automation may include the retrofit of level 0 vehicles with aftermarket devices. 6 Dorothy Glancy et al., A Look at the Legal Environment for Driverless Vehicles, NCHRP Legal Digest 69, at 17- 30 (2015) (raising similar concerns about these provisions), available at https://www.nap.edu/catalog/23453/a-look- at-the-legal-environment-for-driverless-vehicles 7 OECD International Transport Forum, Automated and Autonomous Driving: Regulation under uncertainty, Corporate Partnership Board, (2015), available at https://www.itf-oecd.org/automated-and-autonomous-driving 8 James Anderson, Nidhi Kalra, Karlyn Stanley, Paul Sorensen, Constantine Samaras, & and Oluwatobi Oluwatola, Autonomous Vehicle Technology: A Guide for Policymakers. (2014), available at https://www.rand.org/pubs/research_reports/RR443-2.html 9 For a description of the SAE levels, see http://standards.sae.org/j3016_201609/. We have also included a table (Figure A1) in the Definitions section of this document at Appendix 3. 10 For a related timeline of suggested modifications, see Serian, et al. (2018). Connected and automated driving systems legal and regulatory prioritization assessment and harmonization analysis. Manuscript submitted for publication.

NCHRP 20-102(07) Interim Report 7 • Testing (including field operational tests) of C/ADSs on public roads, including level 4–5 ADS-equipped vehicles, will be relatively common. • Automated truck platoons consisting of two trucks, with the second vehicle equipped with an engaged ADSs allowing communication with the first truck, will be operating on public roadways and increasing in prevalence. • Infrastructure required for connected vehicles (vehicle–to-vehicle [V2V] and vehicle-to- infrastructure [V2I] capabilities) will include roadside devices that transfer signals for localities that choose to invest in such technology. • OEMs will continue to collect some private information on driver preferences and habits that are accessed through equipment purchase contracts (e.g., Tesla’s telematics service agreement, which reserves the right to obtain information about the vehicle and its operation, crashes, and about operators’ use of the vehicle and services). For the mid- to longer- term, analysts predict that: • As the technology improves, the level and extent of C/ADSs will increase. Driver reliance on automation will become particularly widespread for highway driving, traffic jams, and parking assistance. • Driverless cars that move without human operators behind the wheel will be used in low- speed geo-fenced areas (e.g., college campuses) or perhaps on designated lanes in some states. • The technology will be sufficiently refined such that crashes of C/ADSs will occur primarily in mixed vehicle incidents or as a result of user errors (e.g., users not well prepared for handoffs, users erroneously taking control and crashing, users not maintaining their vehicles, and other maintenance issues). • V2I developments may impact the types of infrastructure needed in transportation systems. The nature of the infrastructure will depend on whether V2I technologies become an important facet of C/ADSs. Given the costs, there is some skepticism about the use of elaborate connected infrastructures in the future. • Privacy protections will continue to raise policy challenges given the ability of C/ADSs and related connected technologies to collect substantial amounts of information on operators and occupants. This private information could potentially be used by OEMs, law enforcement personnel, and other commercial or private entities, and these uses will likely need to be significantly restricted for public policy reasons. • The hacking of vehicles, including in ways that present potentially serious public safety risks, will continue to be a difficult challenge for OEMs and policymakers as C/ADS technology advances.

NCHRP 20-102(07) Interim Report 8 2.1 Fit of the Task 3 Report with Earlier NCHRP Tasks This audit is the culmination of Task 3: Identification of Laws and Regulations Potentially Requiring Modification, one of seven tasks laid out in the NCHRP 20-102(07) project (Table 1). Loftus-Otway and Gallun (Updated 2018) tracked the innovative legal developments occurring within the U.S. and internationally to facilitate the smooth integration of C/ADSs into existing transportation structures. Serian et al. (2017) solicited responses from a range of stakeholders to questions about what they believe are the most needed modifications for the future (including not only changes to existing provisions, but entirely new programs and standards). Stakeholders included administrators from DOTs and DMVs, and law enforcement agencies drawn from ten targeted states11 as well as other potentially affected stakeholders (e.g., OEMs, suppliers, technology companies, insurance interests, etc.). Consistent with prior task reports, we used the same definitions, terminology, and assumptions in this report and refer readers to those reports or to Appendix 3 for further specifications. Since this audit provides a different frame of reference by taking a bird’s eye view of the current legal landscape, legislation from the same 10 states targeted in the Issue Identification and Stakeholder Outreach are included in this audit. In addition, to gain more insight into the challenges faced by a diverse set of states, the UVC and legislation for five relatively inactive states (chosen with input from the oversight panel and discussion among team members) were also reviewed. Together, the Issue Identification and Stakeholder Outreach and Identification of Laws and Regulations Potentially Requiring Modification provide a more robust view of the challenges facing states than either approach would provide in isolation. Table 1. Summary of Task Activities Task Description Task 1: Inventory of Legal Activity A review of legal reforms and developments within the U.S. and abroad. Deliverable – Task Memorandum: Loftus-Otway, L., & Gallun, S. (Updated 2018). Connected and automated driving systems legal landscape. Manuscript submitted for publication. Task 2: Issue Identification and Stakeholder Outreach Feedback was obtained from stakeholders regarding regulatory and legislative processes with regard to areas potentially requiring modification, priorities, and challenges. Deliverable – Task Memorandum: Serian, B., et al. (2017). Connected and automated driving systems issue identification and stakeholder outreach. Manuscript submitted for publication. Task 3: Identification of Laws and Regulations (or areas of Laws and Regulations) Potentially Requiring Modification An assessment of the existing gaps or barriers in motor vehicle codes and related laws in 15 states with respect to challenges posed by automated transportation. Deliverable – Interim Report: Wagner, W., et al. (Updated 2018). State legal and regulatory audit: Identification of laws and regulations 11 The 10 Category 1 and Category 2 states were selected for study in Task 2.

NCHRP 20-102(07) Interim Report 9 Task Description potentially requiring modification. Manuscript submitted for publication. Task 4: Prioritization Assessment The identification of how and when vehicle laws and regulations will need to be modified to facilitate the implementation of C/ADSs prioritized based on short-, mid-, and long-term timeframes. Deliverable – Task Memorandum: Serian et al. (2018) Connected and automated driving systems legal and regulatory prioritization assessment and harmonization analysis. Manuscript submitted for publication. Task 5: Harmonization Analysis The identification of areas in today's vehicle codes and regulations in which it might be possible to harmonize in the short-, mid-, and long- term deployment of C/ADSs. In doing so, consider industry needs, implications if harmonization is not achieved, barriers or enablers to harmonization efforts, and forces of harmonization regarding upward versus downward harmonization. Deliverable – Task Memorandum: Serian et al. (2018) Connected and automated driving systems legal and regulatory prioritization assessment and harmonization analysis. Manuscript submitted for publication. Task 6: Guidance Document Development The development of a comprehensive guidance catalog of legal and regulatory changes that will be required as a result of widespread integration of C/ADSs. Task 7: Preparation and Delivery of Final Deliverables Preparation of a final report summarizing the results of Tasks 1-6.