U.S. Transportation Secretary Sean P. Duffy Streamlines Exemption Process for Noncompliant Automated Vehicles

Noncompliant AVs will no longer be stuck waiting for years for approval to operate on U.S. roads

WASHINGTON — U.S. Department of Transportation Secretary Sean P. Duffy today announced that the National Highway Traffic Safety Administration will further accelerate the safe development of automated vehicles by streamlining the Part 555 exemption process.

The exemption will continue to allow manufacturers to sell up to 2,500 motor vehicles per year that do not fully comply with the Federal Motor Vehicle Safety Standards. This includes vehicles that do not have traditional steering wheels, driver-operated brakes, or rearview mirrors. Manufacturers must demonstrate that their vehicles provide an equivalent safety level as compliant vehicles and that the exemption is in the public interest. This latest development builds on Secretary Duffy’s innovation agenda and NHTSA’s AV Framework.

“The Part 555 exemption process has been rightly criticized for taking years – bogging developers down in unnecessary red tape that makes it impossible to keep pace with the latest technologies,” U.S. Transportation Secretary Sean P. Duffy said. “We’ve streamlined this process to remove another barrier to transportation innovation in the United States, ensure American AV companies can out-compete international rivals, and maintain safety.”

“This next step in NHTSA’s AV Framework will advance innovation by supporting the commercial deployment of purpose-built automated vehicles that can satisfy safety requirements,” NHTSA Chief Counsel Peter Simshauser said. “The agency continues working to modernize the FMVSS for automated vehicles, and in the meantime Part 555 exemptions will play an integral role in enabling the ongoing advancement of our domestic AV industry.” 

The streamlined Part 555 exemption also involves improvements to NHTSA’s internal processes to expedite processing time, improve transparency, and increase engagement with applicants. NHTSA will issue improved instructions to give applicants a better idea of what to expect and ensure they provide necessary information up front.

NHTSA also issued a letter to stakeholders about these improvements. 

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