The Future of Mobility

By Cody Uhing, Director of Communications, Autonomous Vehicle Industry Association

Key Takeaways:

• Regulatory roadblocks are holding back the U.S. from leading the AV revolution;
• China is advancing faster than the U.S. in developing policy frameworks favorable to innovation;
• The U.S. needs to embrace a regulatory framework that prioritizes innovation, privacy, while facilitating competition and investment.

A new report from The Heritage Foundation on the future of autonomous vehicles in the United States outlines how the Department of Transportation can deliver on its renewed commitment to leading the global race in autonomous vehicle (AV) innovation. By emphasizing the need to strengthen the AV innovation ecosystem, the report outlines critical regulatory and legislative actions required to secure and sustain U.S. leadership in this transformative sector.

The Transformation of Everyday Life

According to the report, autonomous vehicles could transform society as much as the original automobile did in the early twentieth century. Streets could be safer and quieter; freight vehicles could transport goods more quickly and efficiently; and environmental pollutants can be diminished by integration with electric vehicles. AVs may also alter the way private cars are used, and reduce the need for multiple vehicles to a single household. Not only will this cut down on maintenance and insurance costs for families, but also open doors to those who are not able to drive themselves, such as the elderly, disabled communities, and children.

International Competition

Competition amidst leading industrial economies for leadership in the AV race will be a key determinant of global power in the twenty-first century. As with other critical sectors of industry and technology, the country that succeeds most in the economic domain of the AV race is also most likely to lead in the military domain.

Global leaders in the AV race include China, South Korea, Singapore, Germany, and the U.K.; with the U.S., China, and Germany as the U.S.’s closest competition. Germany has rapidly implemented a federal regulatory framework to support AV development, while the Chinese government has aggressively invested in AV infrastructure and research.

Despite its challenges, the U.S. is still well positioned to lead. States like Arizona, California, Nevada, and Texas have become hubs for testing and deployment. However, the absence of a comprehensive federal regulatory framework continues to limit nationwide progress. 

Policy Challenges

AVs raise novel and difficult policy challenges. In the U.S., testing and deployment requires the Department of Transportation to establish safety standards that guide research and development. Much of those standards, however, need updates conducive to innovation and AV deployment.

The National Highway Traffic Safety Administration (NHTSA), for example, has identified several Federal Motor Vehicle Safety Standards (FMVSS) that may need “technical translation” for AVs, often because the required feature may not be necessary nor exist in the AV, such as rear view mirrors. 

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Additionally, policies addressing insurance, cybersecurity, and privacy will be necessary.

Regulatory Recommendations 

To ensure U.S. leadership in autonomous vehicle (AV) technology, the report lays out a set of strategic regulatory priorities:

• Prioritize Safety, Security & Privacy: Implement strong protections for road safety, cybersecurity, and personal privacy.
• Enable National Coordination: Support standardized rules and interagency collaboration to build a cohesive national AV market.
• Accelerate Level 4 Deployment: Encourage the widespread and rapid deployment of Level 4 AVs to maximize economic and safety benefits.
• Promote Affordability: Foster economies of scale by supporting the development of cost-effective AV models.
• Streamline Regulation: Avoid a patchwork of conflicting rules—establish a unified federal framework that promotes innovation and competition.
• Balance Data Use with Privacy: Allow for necessary data collection while safeguarding user privacy and security.
• Modernize Liability & Insurance: Update insurance and liability systems to reflect AV-specific risks and responsibilities.

Actionable Policy Steps:

• The National Highway Traffic Safety Administration (NHTSA) should issue a comprehensive AV regulatory framework.
• The Federal Motor Carrier Safety Administration (FMCSA) should develop a similar framework specifically for autonomous trucks.
• NHTSA should eliminate overly burdensome reporting requirements that could hinder innovation.
• The Department of Transportation (DOT) should promote regulatory self-certification for AV safety compliance and provide a technical interpretation of Federal Motor Vehicle Safety Standards (FMVSS) tailored to AVs.
• Congress should combine key elements from prior AV legislation to expand testing, ensure cybersecurity, and include licensing provisions for individuals with disabilities.

Looking ahead

To preserve its global leadership in autonomous vehicle technology, the report stresses that U.S. must adopt a clear and forward-looking regulatory and legislative agenda. The report underscores that this can be achieved by modernizing vehicle safety standards, clearly delineating federal and state responsibilities, streamlining the regulatory approval process, and fostering market-driven innovation. Earlier this year, AVIA has released Securing American Leadership in Autonomous Vehicles, a series of recommendations for policymakers that emphasizes the urgent need for federal action to secure the United States’ position as a global leader in autonomous vehicle technology while ensuring safety, fostering innovation, and promoting economic resilience.