States Vie to Drive Autonomous Vehicles

Autonomous vehicles may help the South rise again, as a war between the states (in the U.S.) has broken out over autonomous vehicle development. Tennessee has fired the first shot as it considers legislation to allow the testing and production of Level 4 autonomous vehicles requiring no steering wheel or brake or accelerator pedals.

Tennessee Senate Bill 1561 introduced by Senator Mark Green weeks ago will allow autonomous cars to be produced and tested in Tennessee. The legislation follows closely on the heels of the U.S. Department of Transportation recognizing Google’s self-driving car computer as a driver for regulatory purposes and follows by about six months California’s decision to allow autonomous vehicle testing but with a driver present along with a steering wheel and brake and accelerator pedals.

Google was disappointed by California’s decision, though heartened by the USDOT’s stance. The USDOT also indicated its intention to create within six months a policy framework for autonomous vehicle testing and development.

Texas, Florida, California, Oregon, Michigan and Washington, DC have passed various forms of legislation supporting the development of autonomous vehicles, but requiring the presence of a driver. While Google and other developers have welcomed the USDOT’s stated intention to create a uniform national policy for testing, the prospect of states competing for development dollars and, ultimately, production investments may alter the regulatory dynamic.

States and cities and countries increasingly see autonomous vehicle development as a strategic source of competitive economic advantage not only for the investments required and the contribution to employment, but for the wide array of applications for the technology. This interest in the practical applications for autonomous vehicles is reflected in some of the earliest projects targeted at buses in multiple locations around the world from China to Kansas City, MO, to the United Kingdom.

Tennessee’s interest in fostering autonomous vehicle development reflects the presence of Nissan North America’s headquarters in Franklin along with major GM (Spring Hill) and Volkswagen (Chattanooga) production facilities. More than 1,000 automotive suppliers have facilities in Tennessee supporting a workforce of approximately 100,000.

Green was quoted by the Leaf-Chronicle saying: "Because these companies that are going to manufacture them, and create all those jobs, are going to go where they can test their vehicles. So we have a tremendous opportunity… So my autonomous vehicle bill is going to be huge. And I think as far as prosperity goes, it's going to be a home run for Tennessee."

Green's bill would establish definitions that mirror industry definitions for autonomous vehicles as well as provide state oversight through Tennessee's transportation and safety departments to ensure public safety, according to the Leaf-Chronicle.

As further noted by the Leaf-Chronicle: “The measure also would create the legislative framework to register autonomous vehicles, establish taxation parity with vehicles currently on the roads and allow future mass transit applications. Green said Google … had heard of his bill, and the company was excited to work with him on making Tennessee a leader in automated technology.”

Autonomous vehicle development is just one source of employment and economic activity emanating from the automotive industry.  Competing states cannot have failed to notice that Nevada has nearly cornered the market on EV powertrain investments with Tesla choosing the state for its battery giga-factory and Faraday Future announcing a $1B investment in EV production in the state. Michigan and Minnesota are bidding to lead the development of DSRC technology with state-promoted trials and test facilities.

Other states are still trying to catch up with existing autonomous vehicle developments. New York State still requires a hand on the steering wheel in such cars. Virginia recently took up legislation (HB 454, passed by the Virginia House) to allow moving images in dashboard displays under particular circumstances: “The bill would allow the viewing of a visual display while the vehicle is being operated autonomously. The bill also provides that vehicles used by universities for vehicle technology research are not required to have government plates.”

Virginia is also active in DSRC development and testing and is coming late to the autonomous vehicle game. Tennessee’s initiative, if adopted by the State legislature, could well tip the balance in Google’s favor regarding its focus on creating a driverless vehicle with no steering wheel or brake or accelerator pedals.

It’s clear that the heterogeneous environment of state-sponsored development activity may well work in Google’s favor.  An identical scenario is playing out globally as countries seek to establish autonomous vehicle leadership positions.  China, the United Kingdom and Germany are among many touting the advantages of developing autonomous vehicles within their boundaries.

But Michigan, in particular, the historic hub of the automotive industry in the U.S., may want to rethink its policies which have so far been unfriendly to Tesla, an EV and autonomous driving leader. Could Michigan choose to cozy up to Google or Apple? Can it afford not to?