Welcome to The On-Ramp, the newsletter published by Venable's Autonomous and Connected Mobility Team. The On-Ramp explores legal and policy developments in the world of autonomous and connected vehicles, smart infrastructure, electrification, and other emerging automotive and mobility technologies, from Capitol Hill to the U.S. Department of Transportation and beyond.

White House

Biden Administration Announces Tariffs on EVs and Battery Components

On May 14, the Biden administration announced, upon completion of the U.S. Trade Representative's (USTR) four-year review of Section 301 tariffs, that it would increase tariffs on Chinese electric vehicles (EVs) and other strategic sectors. According to the administration's announcements, the increased tariffs are intended to protect American workers and American companies from China's unfair trade practices, and to encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation. The revised tariffs include:

• An increase from 0–7.5% to 25% on certain steel and aluminum products in 2024
• An increase from 25% to 50% on semiconductors by 2025
• An increase from 25% to 100% on electric vehicles in 2024
• An increase on lithium-ion EV batteries from 7.5%% to 25% in 2024, on lithium-ion non-EV batteries from 7.5% to 25% in 2026, and on battery parts from 7.5% to 25% in 2024

The administration announced that it would also be increasing tariffs on solar cells, ship-to-shore cranes, syringes and needles, certain personal protective equipment (PPE), and rubber medical and surgical gloves.

USTR also published a notice seeking public comment regarding the proposed modifications and an exclusion process for certain machinery. Comments closed June 28, 2024.

U.S. Department of Transportation

NHTSA Releases Updated Traffic Fatality Statistics

On June 24, the National Highway Traffic Safety Administration (NHTSA) released its initial projections of traffic fatalities in the first three months of 2024. According to the projections, an estimated 8,650 people died in motor vehicle traffic crashes from January through March 2024, a decrease of about 3.2 percent as compared with 8,935 fatalities projected to have occurred in the same period for 2023. NHTSA estimates that fatalities decreased in 30 states and Puerto Rico in the first quarter of 2024, while increases are projected for 19 states and the District of Columbia, as compared with the same period in 2023. One state remained unchanged.

However, these estimates follow a recent report from NHTSA on distracted driving in 2022. This report found that in 2022, 3,308 people were killed and an estimated additional 289,310 people were injured in crashes involving distracted drivers. Moreover, NHTSA found that in 2022, 621 vulnerable road users (VRUs) were killed in distraction-affected traffic crashes and that despite overall declines in fatalities, VRU fatality rates are increasing, and distracted driving is a contributing factor to the increase in fatalities.

USDOT Awards Advanced Vehicle Technology Grants to Arizona, Texas, and Utah

On June 20, the Federal Highway Administration (FHWA) announced the awarding of $60 million in grants under the Saving Lives with Connectivity: Accelerating V2X Deployment program to advance connected and interoperable vehicle technologies. The Saving Lives with Connectivity: Accelerating V2X Deployment initiative is focused on road safety, mobility, and efficiency through technology that enables vehicles and wireless devices to communicate with each other and with roadside infrastructure and provide warnings. The grants awarded include:

• $19.6 million for the Maricopa County Department of Transportation to lead a large-scale deployment of V2X technologies, relying primarily on 5.9 GHz communications, to connect 750 physical roadside units and virtual roadside units to an estimated 400 vehicle onboard units targeting transit, emergency, and freight fleets.
• $19.2 million for the Texas A&M Transportation Institute to deploy V2X technology to holistically enhance safety, efficiency, and overall mobility for vulnerable road users (VRU) situated at signalized intersections, emergency responders navigating varying traffic scenarios, transit operators seeking efficient routes, workers operating within construction zones, and everyday motorists.
• $40 million for the Utah Department of Transportation toward V2X deployment sites in three states—Utah, Colorado, and Wyoming—for applications focused on safety, mobility, and environment, and to support the ability to demonstrate measurable impact and address critical needs, including connected intersection, weather impact, curve speed warning, traveler information, and vulnerable road user and other safety alert technologies.

Transforming Transportation Advisory Committee Meeting

On June 13, the U.S. Department of Transportation's (USDOT) Transforming Transportation Advisory Committee (TTAC) held its second meeting of 2024. According to USDOT, the role of TTAC is to provide information, advice, and recommendations to the Secretary of Transportation on matters relating to transportation innovations, including advice and recommendations to the Secretary about needs, objectives, plans, and approaches for transportation innovations. The June meeting included Working Group updates from the Subcommittee on Automated Driving Systems (ADS) and the Subcommittee on Artificial Intelligence (AI) Impacts on Transportation.

The Public Safety Interaction Working Group presented findings and recommendations from research on "common challenges to autonomous vehicle (AV) deployments." The Working Group conducted interviews with public safety agencies in areas that currently have Level 4 ADS deployed, or are planning to deploy Level 4, in their jurisdictions. The Working Group recommended that USDOT create a work plan for fleet-operated ADS public safety interactions, including (1) data collection and measurement of information; (2) equipment necessary for effective communication; and (3) training and standards for remote advisor staff.

The ADS Data Collection Working Group presented findings and recommendations related to issues associated with collecting and disseminating ADS data. The Working Group made six broad initial recommendations, including that NHTSA update ADS-related data collection and dissemination under the Standing General Order based on inputs from a new Request for Information.

The Working Group on Workforce presented on the economic and workforce impact of AVs. It offered four broad categories of recommendations for understanding the impact of AV deployment, including identifying stakeholders, conducting research and evaluating data needs, assessing existing USDOT tools, and increasing interagency cooperation.

NHTSA Announces Final Updated CAFE Standards

On June 7, the National Highway Traffic Safety Administration (NHTSA) published the final rule regarding the Corporate Average Fuel Economy (CAFE) standards for passenger cars and light trucks and heavy-duty pickup trucks and vans. Under the final rule, fuel economy will increase by 2% per year for model years 2027-2031 for passenger cars, while for light trucks it will increase by 2% per year for model years 2029-2031. Heavy-duty pickup truck and van fuel efficiency will increase by 10% per year for model years 2030-2032 and by 8% per year for model years 2033-2035.

NHTSA projects that the final standards would require an industry fleet-wide average for passenger cars and light trucks of roughly 50.4 miles per gallon (mpg) in MY 2031 and an industry fleet-wide average for heavy-duty pickup vehicles of roughly 2.851 gallons per 100 miles in MY 2035.

Grants and Other Funding Opportunities

• On July 1, the Federal Transit Agency (FTA) announced $1.94 million in competitive grant funding under the Enhancing Mobility Innovation Program. This funding is intended to support research conducted by providers of public transportation. FTA will allocate funding to support rider-centered research projects in two categories: (1) Concepts Development and/or Demonstration Projects and (2) Software Development Projects, with a minimum award amount of $400,000. Eligible projects include all activities that advance promising technologies, practices, and strategies and accelerate innovations in mobility for transit, including, but not limited to, deploying autonomous vehicles. Applications are due August 30, 2024.
• On May 30, the U.S. Department of Transportation opened applications for the second round of funding under the Charging and Fueling Infrastructure (CFI) grant program. The CFI Program is divided into two distinct grant funding categories: (1) Community Charging and Fueling Grants, which are intended to support publicly accessible EV charging infrastructure and hydrogen, propane, and natural gas fueling infrastructure in urban and rural communities; and (2) Alternative Fuel Corridor (AFC) Grants, which are intended to support publicly accessible EV charging infrastructure and hydrogen, propane, and natural gas fueling infrastructure along designated AFCs. Applications are due August 28, 2024.
• On May 22, the U.S. Department of Transportation (USDOT) opened applications for Stage 1 of the Strengthening Mobility and Revolutionizing Transportation (SMART) grant program. The SMART grant program, established by the Bipartisan Infrastructure Law, is intended to provide grants to eligible public sector agencies to conduct demonstration projects focused on advanced smart community technologies and systems to improve transportation efficiency and safety. SMART grants are administrated in two phases—Stage 1: Planning and Prototyping and Stage 2: Implementation. USDOT anticipates that this will be the final Stage 1 NOFO under the current authorized funding for SMART grants. Applicants must receive a Stage 1 grant to apply to Stage 2. Projects must demonstrate at least one technology area and may demonstrate more than one technology area. Technology areas include (1) Coordinated Automation; (2) Connected Vehicles; (3) Intelligent, Sensor-Based Infrastructure; (4) Systems Integration; (5) Commerce Delivery and Logistics; (6) Leveraging Use of Innovative Aviation Technology; (7) Smart Grid; and (8) Smart Technology Traffic Signals Section. Applications close July 12, 2024.

Other Federal Agency Activity

Department of Commerce Publishes NPRM on Outbound Investment

On June 21, the U.S. Department of Commerce (Commerce) published a notice of proposed rulemaking (NPRM) on outbound investment. This proposed rule sets forth regulations that would implement Executive Order 14105 of August 9, 2023, "Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern," which declares a national emergency to address the threat to the United States posed by countries of concern, which seek to develop and exploit sensitive technologies or products critical for military, intelligence, surveillance, or cyber-enabled capabilities. The proposed rule would (1) require U.S. persons to provide notification to the U.S. Department of the Treasury regarding certain transactions involving persons of a country of concern who are engaged in activities involving certain national security technologies and products that may contribute to a threat to the national security of the United States; and (2) prohibit U.S. persons from engaging in certain other transactions involving persons of a country of concern who are engaged in activities involving certain other national security technologies and products that pose a particularly acute national security threat to the United States. Comments on the NPRM close August 4, 2024.

Congress

Hearings

• House Transportation and Infrastructure Committee Hearing on the FY25 Department of Transportation Budget. On June 27, the House Transportation and Infrastructure Committee held a hearing, "Oversight of the Department of Transportation's Policies and Programs and Fiscal Year 2025 Budget Request." Secretary of Transportation Pete Buttigieg testified before the Committee on a range of matters, but questions from members were largely focused on implementation of the Infrastructure Investment and Jobs Act and oversight of the rail and aviation industries.
• House Transportation and Infrastructure Subcommittee on Highways and Transit Hearing on Public Transit. On June 13, the House Transportation and Infrastructure Subcommittee on Highways and Transit held a hearing, "Revenue, Ridership, and Post-Pandemic Lessons in Public Transit." The hearing focused on addressing various strategies to support public transit in the face of changing ridership patterns and other challenges, including the financial math behind them, and how adaptations that have proved successful can be replicated. Witnesses included (1) M.J. Maynard, CEO, Regional Transportation Commission of Southern Nevada, on behalf of the American Public Transportation Association (APTA); (2) Laura Hendricks, CEO, Transdev U.S., on behalf of the North American Transit Alliance (NATA); (3) Marc Scribner, senior transportation policy analyst, Reason Foundation; and (4) Greg Regan, president, Transportation Trades Department, AFL-CIO. Autonomous vehicles were briefly mentioned in Mr. Regan's opening testimony.
• House Energy and Commerce Subcommittee on Innovation, Data, and Commerce Hearing on FY25 Department of Commerce Budget. On June 26, the House Energy and Commerce Subcommittee on Innovation, Data, and Commerce held a hearing, "The Fiscal Year 2025 Department of Commerce Budget." During the hearing, Secretary of Commerce Gina Raimondo was asked questions regarding the Department's Advanced Notice of Proposed Rulemaking, "Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles." In response to a question from Rep. Larry Bucshon (R-IN) regarding attacks by foreign adversaries on connected vehicles, Secretary Raimondo said that new cars—not just autonomous vehicles—have "thousands" of sensors. She stated that the Commerce Department's rule on Information and Communications Technology Services (ICTS) for connected vehicles, which the Secretary said would be out later this year, will make sure that data can't be collected and sent back to Beijing. Rep. Debbie Dingell (D-MI) asked the Secretary to elaborate on the steps Commerce is taking as they relate to the risks associated with ICTS components in connected vehicles that are made by foreign entities of concern. Secretary Raimondo said that, regarding the Department's forthcoming rule, actions could include banning Chinese electric vehicles entirely or implementing regulations on the software—such as requiring that software be American made—or requiring that data collected by vehicles be housed in America.

States

In California, the legislature continues to advance three bills related to AV operations: AB-1777, AB-3061, and AB-2286. Topics addressed in these bills include, but are not limited to, ticketing, interactions with law enforcement, data reporting, and the role of "human safety operators" in heavy-duty vehicles. All three bills passed out of the Assembly and advanced out of the Senate Transportation Committee before the legislature adjourned for its summer recess on July 3. Additionally, SB 915, which would have provided local control over AV operations, died in June after it was pulled by the author. The California legislature reconvenes on August 5 and will adjourn for the year on August 31.

In Delaware, the General Assembly considered SB 258, which would have required a human operator to be physically present in AVs weighing more than 10,000 pounds. The Senate passed the bill in mid-June. However, the House adjourned on June 30 without taking up the bill, effectively ending its consideration in 2024.

* The authors would like to thank Autonomous ＆ Connected Mobility Analyst Tess Brennan for her assistance writing this newsletter.