New York City to require new permit for self-driving vehicles despite industry opposition


“The city does not currently have a role in the review of applications for the autonomous vehicles permit issued [by the state], and is not informed when a company will be approved to begin testing,” city Transportation Commissioner Hank Gutman wrote in the notice for the rule. “It is therefore urgent for this rule to take effect as soon as possible so that the city can monitor the safety of this emerging technology while it is operated on public roadways.”

The permit requires that autonomous vehicle companies:

• Pay a $5,000 annual fee for the testing permit.
• Prove that, based on previous evaluations, the autonomous technology can operate more safely than a human driver.
• Certify that a licensed driver will be present in the driver’s seat at all times and be able to take over the vehicle.
• Submit a detailed safety plan for operating in New York that includes the geographic areas the company plans to test.
• Carry at least $10 million in total insurance coverage for automobile, personal liability and property damage.
• Indemnify the city against all legal liabilities related to the testing.
• Share data on where cars operate, total miles, how long backup drivers are in the vehicle and any instances when the operator takes over the vehicle.
• Report any crash to the city within four hours. (Companies also are required to report crashes to the National Highway Traffic Safety Administration.)

Companies caught testing a self-driving car on city streets without a permit face fines of up to $5,000 per day.

The rules were first proposed Aug. 2. The final notice, published in The City Record, prompted a rebuke Wednesday from industry officials.

The new rule “disregarded input provided by industry experts during the hearing and could ultimately deter companies from launching here altogether,” said Ellie Casson, head of city policy and government affairs at Waymo, the Alphabet-backed autonomous car company. “They’re unprecedented in scope, inconsistent with state rules and set arbitrary standards for safety that will be hard if not impossible to meet.” Casson said the company will work with the city on potential improvements to its regulation.

A request for comment from Intel on how the new rules could affect Mobileye’s existing New York tests was not returned Wednesday.

The city Department of Transportation acknowledged but did not respond to questions on the implementation of the rule.

The Self-Driving Coalition for Safer Streets, a group representing autonomous-driving companies, warned during a virtual hearing last week that a “patchwork of local regulations” could slow testing in the New York market. One industry representative said that there is no precedent for the requirement that the city be indemnified against damages from the tests.

Several industry representatives questioned the requirement that companies certify their autonomous vehicle is safer than a human driver. There is no clear standard for that type of assessment.

“The Self-Driving Coalition remains concerned that these regulations will restrict autonomous vehicles from achieving their full safety and mobility potential for New Yorkers,” coalition general counsel Ariel Wolf said Wednesday via email. “We hope to continue working collaboratively with the New York City Department of Transportation and other policymakers to establish a uniform, statewide framework that will support AVs’ advancement and safe operation.”

Some residents at the virtual hearing voiced concerns about the risk of having technology tested on city streets.

City officials amended parts of the rule in response to the hearing, according to the notice posted Tuesday, including by adding more time for operators to report crashes.



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