Driverless cars get a ‘green light’ from Washington

Last month at the Detroit Auto Show, the Obama administration declared its intent to develop a landmark national policy paving the way for autonomous vehicles (AVs), or driverless cars, on U.S. roads. Collaborating with automakers and state agencies, the federal government will begin developing a common regulatory framework and performance standards for AVs, while its 2017 budget will propose $4 billion in funding for pilot programs to test such vehicle systems on designated highway corridors.

Analysts predict mass adoption is at least 25 years down the road, but AVs may eventually hold the keys to tackling multiple public policy challenges, with “enormous potential to save lives, reduce greenhouse gas emissions, and transform mobility for the American people,” according to U.S. Secretary of Transportation Anthony Foxx.

While commercial research and development — from automakers like General Motors and Tesla to technology firms like Google and Uber — has largely driven progress over the past several years, the administration’s proposal sends a strong signal to the market and reduces uncertainty for ongoing and future capital investments in AV-related technologies. Public funding will directly allocate new financial and technical resources toward development and would also likely attract additional investment from the private sector. Most critically, a common national policy framework addresses the issue of state-level incompatibility and unifies the addressable market. This stands in contrast to the U.S. government’s approach to developing a coherent national energy policy and “picking winners.”

We may still be some years away from seeing AVs in cities, where driving conditions become more complex given urban density and congestion. In its 2014 report on AVs, the RAND Corporation suggests that regulations could be developed for “different specific vehicle capabilities” (such as highway vs. city driving, fast vs. slow, or fully autonomous vs. with back-up driver), an approach which could presumably be legislated in phases over time.

Either way, this announcement should be seen as laying a critical foundation for accelerating and standardizing development of AVs, part of a trend that may appeal to both haters and lovers of driving alike. Driverless cars aren’t just here to stay — they’re moving ahead, with or without us.