Senate nears deal to move long-stalled self-driving car legislation

Senate negotiators are nearing an agreement that could pave the way for an oversight framework for self-driving cars, a step the industry says is needed to ensure automakers don’t pour money into a car that doesn’t meet federal highway standards.

The measure, sponsored by Senate Commerce Committee Chairman John Thune of South Dakota and Sen. Gary Peters, D-Mich., has been stalled amid opposition from several Democrats and trial attorneys over, among other things, whether customers would be forced into private arbitration for legal complaints over the new technology. Updated language would limit the use of pre-dispute arbitration clauses until certain safety standards are made public, according to text and a summary document obtained by the Washington Examiner.

The auto industry is pushing the Senate to act on the measure before the year ends out of fear that Democrats would seek changes to it once they retake control of the House. While the updated language does not represent any final package, the circulation of the text signals that the opposing sides are nearing a deal.

Even if a compromise is reached, it remains unclear whether the measure can move before lawmakers leave for the holiday break. Floor time in the Senate is limited, and Congress must still advance a bill to fund the government, a task made more difficult after the death of former President George H.W. Bush on Friday delayed votes in both chambers.

The Senate could pass the legislation via unanimous consent — a route that remains uncertain given past opposition from some Democrats — or add it to the funding package. It is also unclear whether the House would move to pass the Senate bill without seeking any changes to it, a demand that would effectively delay the measure until the next Congress, given the short window of time. The chamber advanced its own self-driving car legislation last year and has been pressuring the Senate to act.

The revised language would give the Department of Transportation more time to update existing standards to reflect the new autonomous driving technology. Sources previously told the Washington Examiner that Transportation Secretary Elaine Chao, the wife of Senate Majority Leader Mitch McConnell, R-Ky., was opposed to some aspects of the bills.

It also further outlines that companies which receive an exemption to test the self-driving cars — many which won’t comply with federal standards because they lack a steering wheel and other required features — must “maintain the same overall safety level, occupant protection level, and crash avoidance level” as traditional vehicles. Under the new bill, the exemptions would be capped at five years and the Transportation Department would be required to review the agreement on an annual basis.

The agency would have to draft new rules to require manufacturers to provide “responsible education and marketing strategies” related to Level 2 autonomous vehicles, or those cars that come with partial automation, like Tesla’s autopilot feature. The new language would also mandate new reporting requirements on “driver engagement and driver monitoring” for Level 3 vehicles, or those cars that are fully automated but require a human to take over in certain situations.

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