Federal Government Announces Less Stringent Rules for Autonomous Vehicles

The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) announced changes to federal rules that will reduce regulatory burdens for autonomous vehicle (AV) and SAE Level 2 advanced driving assistance systems (ADAS) manufacturers, developers, and operators. This new rule is officially titled "Third Amended Standing General Order 2021-01" and will go into effect on June 16, 2025.

Currently, NHTSA operates an exemption program for AVs that do not meet federal safety standards due to a lack of components - like windshield wipers, as an example - that are obsolete on vehicles not operated by a human. However, only foreign-made AVs qualify for this exemption program. NHTSA's new rule would allow American-made AVs to qualify.

NHTSA requires AV and ADAS developers to submit reports to the agency when one of their AVs or Level 2 ADAS-equipped vehicles are involved in some collisions. The new rule will reduce such reporting requirements. One significant rule changes for AVs involved in crashes will result in no reporting requirements for crashes involving less than $1,000 in damages if the AV didn't initiate the collision. Level 2 ADAS-equipped vehicles involved in crashes no longer requiring a report - unless the collision resulted in fatality, hospitalization, airbag deployment, or a strike on a "vulnerable road user" (pedestrian, bicyclist, etc) constitutes another significant change. As a result of these changes, most minor fender benders will no longer require reporting.

Click here to read Third Amended Standing General Order 2021-01 in its entirety.