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.
U.S. Department of Transportation (U.S. DOT)
NHTSA Publishes Updated Rule on CAFE Standards
On June 6, 2025, the National Highway Traffic Safety Administration (NHTSA) published a final rule, "Resetting the Corporate Average Fuel Economy Program." This rule describes NHTSA's interpretation of its authority to establish the necessary legal foundation for bringing the Corporate Average Fuel Economy program into compliance with relevant statutory requirements. The rule also describes NHTSA's interpretation of its authority to create a commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency improvement program, also establishing the necessary legal foundation for bringing that program into compliance with the law. This rule does not itself change existing CAFE or medium- and heavy-duty standards. During the rulemaking process for replacement standards, NHTSA will exercise its enforcement authority regarding all existing CAFE and medium- and heavy-duty standards in accordance with the interpretation set forth in this rulemaking.
U.S. DOT Releases Fiscal Year 2026 Budget Requests
On May 30, 2025, the U.S. Department of Transportation released budget requests for fiscal year 2026 (FY26). The requests outline how the Department intends to spend the $147.1 billion FY26 budget. This total comprises $111.3 billion in new budgetary resources included in the president's FY26 budget request and $35.8 billion in advance appropriations from the Infrastructure Investment and Jobs Act (IIJA). The budget includes several requests related to autonomous vehicles (AVs):
National Highway Traffic Safety Administration (NHTSA)
- $20.8 million for the Office of Rulemaking to focus on deregulation activities intended to remove unnecessary regulatory barriers and spur economic growth
- NHTSA's Office of Automation Safety will support the Secretary's AV Framework by (1) continuing to modernize Federal Motor Vehicle Safety Standards (FMVSS) to allow their applicability to novel AV designs; (2) implementing streamlined reporting under the Standing General Order on Crash Reporting for vehicles equipped with certain advanced driver assistance systems (ADAS) and automated driving systems (ADS); and (3) accepting applications from domestic manufacturers and operators of ADS vehicles with novel designs as part of the agency's expanded AV Exemption Program (AVEP)
- $28.5 million to support research programs aimed at the safe testing and deployment of advanced vehicle technologies. NHTSA intends to use this funding to facilitate the development of an AV regulatory framework to ensure safety, foster innovation, and maintain U.S. leadership in the field
- $18.7 million for programs and activities that will support the enforcement of vehicle safety standards, address safety-related defects and recalls, and investigate criminal fraud associated with rolling back and disabling odometers. This funding will also support the secretary's AV Framework by streamlining and maintaining crash reporting requirements for vehicles with automated driving technologies, prioritizing safety while reducing burden
Federal Motor Carrier Safety Administration (FMCSA)
- The $926.6 million request includes funds for the Agency to continue work on the deployment of autonomous commercial vehicles and to publish a final rule for the safe deployment of commercial vehicles with automated driving systems on the nation's roadways
- $14.1 million to implement the Agency's multiyear Research & Technology (R&T) program and expand research in automated driving systems and roadside screening technologies
The budget also proposes canceling $5.7 million from the Federal Highway Administration (FHWA) budget for electric vehicle (EV) charging programs authorized under the IIJA.
U.S. DOT Releases Proposed Updates to FMVSS and FMCSR
On May 29, 2025, Secretary of Transportation Sean Duffy announced 52 deregulatory actions across Federal Highway Administration (FHWA), Federal Motor Carrier Safety Administration (FMCSA), and National Highway Traffic Safety Administration (NHTSA). These actions include several regulatory updates to Federal Motor Vehicle Safety Standards (FMVSS) and Federal Motor Carrier Safety Regulations (FMCSRs).
- Updates to the Federal Motor Vehicle Safety Standards
Steering Control Rearward Displacement. This proposed rule would amend FMVSS No. 204, Steering Control Rearward Displacement, which specifies requirements that limit the rearward displacement of the steering column in a frontal crash. NHTSA is proposing to exclude vehicles from having to comply with FMVSS No. 204 if they are certified to the frontal barrier crash protection requirements of FMVSS No. 208.
Side Impact Protection. This proposed rule would remove obsolete requirements from FMVSS No. 214, Side impact protection. The Agency states that all of those requirements are no longer applicable because they pertained to vehicles subject to phased-in compliance.
Fuel System Integrity. NHTSA is proposing to amend 49 CFR 571.301 to remove obsolete directives from its phase-in reporting requirements that pertain only to vehicles manufactured in prior years. The proposal would eliminate those directives while maintaining other directives in 49 CFR 571.301 that pertain to vehicles that are being manufactured or will be manufactured.
- Updates to the Federal Motor Carrier Safety Regulations
Liquid-Burning Flares. This proposed rule would remove references to liquid-burning flares from the warning device requirements in the FMCSRs. This proposed revision would remove outdated language referring to warning devices that FMCSA believes are no longer used.
Electronic Driver Vehicle Inspection Reports. This proposed rule would clarify the requirement to complete a Daily Vehicle Inspection Report (DVIR). The DVIR may already be completed electronically; however, this proposed rule offers explicit language to make this clear.
License Plate Lamps. This proposed rule would exempt truck tractors that are towing a trailer from the requirements for lamp and reflective devices.
Electronic Logging Device. This proposed rule would amend the FMCSRs to rescind the in-vehicle electronic logging device (ELD) operator's manual requirement for commercial motor vehicles (CMVs).
The announcement also included a reinstated and modified request for an information collection for a period of three years as part of the New Car Assessment Program (NCAP). NHTSA is seeking to gather data related to new model year vehicles, including "crashworthiness features" and "advanced crash avoidance technologies," among other vehicle specifications. NHTSA is asking for comments on whether the proposed information collection is necessary, whether the cost estimates included within the proposal are accurate, ways to improve the information collected, and ways to minimize the burden of the information collection on respondents. This data collection follows from a November 2024 update to NCAP to include four new advanced driver assistance systems (ADAS), including blind spot warning, blind spot intervention, lane keeping assist, and pedestrian automatic emergency braking. In that update NHTSA also outlined a "roadmap" to include additional ADAS technologies into NCAP in the following five to ten years. Comments on the information collection must be submitted by June 27, 2025.
U.S. DOT Announces Automated Vehicle Framework
On April 24, 2025, the National Highway Traffic Safety Administration (NHTSA) released a new Automated Vehicle (AV) Framework. The AV Framework, part of the secretary's transportation innovation agenda, is intended to support American ingenuity, maintain key safety standards, and prevent a patchwork of state laws and regulations. The Framework is centered on three principles: (1) Prioritize Safety; (2) Unleash American Innovation; and (3) Enable Commercial Deployment.
The key policy actions in the AV Framework include (1) revisions to the Standing General Order on Incident Reporting for Automated Driving Systems (ADS) and Level 2 Advanced Driver Assistance Systems (ADAS) and (2) creating a process for NHTSA to accept and review requests for vehicles built in the U.S. to receive Federal Motor Vehicle Safety Standard (FMVSS) exemptions for non-commercial purposes that involve research or demonstration.
Amended SGO. The Third Amended Standing General Order 2021-01 (General Order or SGO) took effect on June 16, 2025, and supersedes NHTSA's April 5, 2023 Second Amended General Order. Consistent with previous iterations, the SGO directs identified manufacturers of ADS and Level 2 ADAS-equipped vehicles, ADS and Level 2 ADAS equipment manufacturers, and operators of ADS-equipped vehicles to report specified information about certain safety-related incidents involving vehicles (including prototype vehicles) operating on publicly accessible roads using ADS or Level 2 ADAS. Changes in the revised SGO include:
- Expanding the time window for reporting serious crashes from 1 day to 5 days
- Limiting reporting requirements for less serious crashes to incidents where the resulting property damage is expected to exceed $1,000, the ADS-equipped vehicle was the only vehicle involved in the crash, or the ADS-equipped vehicle struck another vehicle or object
- Requiring monthly follow-up reporting only for serious crashes and only when there is materially new or different information to report on certain subjects
FMVSS Exemptions. The announcement for adjustments to the current FMVSS exemption process was made in a letter signed by Peter Simshauser, chief counsel, NHTSA. The letter states that NHTSA will now begin to accept and process requests for vehicles built in the United States to receive FMVSS exemptions for non-commercial purposes that involve research or demonstration in accordance with 49 U.S.C. § 30114(a), opening up the current 49 CFR Part 591 exemption process for foreign vehicles to domestically built vehicles as well. In the letter, NHTSA encourages the public to submit comments on this matter by responding to the Agency's request for information issued April 3, 2025, regarding existing regulations, guidance, and other regulatory obligations that can be modified or repealed to address unnecessary regulatory barriers to safety and innovation, particularly for advanced vehicle technologies.
Additionally, Transportation Secretary Duffy announced on June 13, 2025, that NHTSA would be streamlining the Part 555 exemption process. The National Traffic and Motor Vehicle Safety Act (Safety Act), 49 U.S.C. Chapter 301, authorizes NHTSA to grant manufacturers exemptions from certain Federal Motor Vehicle Safety Standards (FMVSS) (49 U.S.C. § 30113). These "Part 555" exemptions can be granted for 2- or 3-year periods and allow manufacturers to produce up to 2,500 non-compliant motor vehicles per year, as long as the manufacturers demonstrate that their vehicles provide a level of safety equivalent to that of FMVSS-compliant vehicles and that the exemption is in the public interest.
In a letter to stakeholders, NHTSA Chief Counsel Peter Simshauser writes that NHTSA is taking two steps to streamline the Part 555 exemption process:
- Publishing enhanced application instructions intended to help manufacturers better understand the application requirements in Part 555 and to provide guidance to manufacturers about the information that will be most helpful to the agency when evaluating their applications.
- Adopting a more dynamic and flexible approach to evaluating and overseeing exemptions for ADS-equipped vehicles, such as by developing terms that could be included in Part 555 exemption grants, when appropriate, to condition operations of exempted ADS-equipped vehicles on enhanced and continuing oversight from NHTSA.
NHTSA Releases Early Estimates of Traffic Fatalities for 2024
On April 8, 2025, NHTSA released early estimates of traffic fatalities in 2024. A statistical projection of traffic fatalities for 2024 shows an estimated 39,345 people died in motor vehicle traffic crashes, a decrease of about 3.8 percent compared with the 40,901 fatalities reported to have occurred in 2023. However, vehicle miles traveled (VMT) in 2024 increased by about 32.3 billion miles, so the fatality rate per 100 million VMTs decreased only marginally, from 1.26 in 2023 to 1.20 in 2024.
NHTSA Publishes Updated Statistics on Distracted Driving
On April 7, 2025, NHTSA published updated statistics on distracted driving in 2023. According to the data there were 3,275 people killed and an estimated additional 324,819 people injured in motor vehicle traffic crashes involving distracted drivers in 2023. Eight percent of fatal crashes, an estimated 13 percent of injury crashes, and an estimated 13 percent of all police-reported motor vehicle traffic crashes in 2023 were reported as distraction-affected. The report also finds that the estimated number of people injured in distraction-affected traffic crashes has shown increases and decreases over the past 5 years. However, the percentage of injured people in distraction-affected traffic crashes as a portion of all people injured has remained relatively constant.
Other Federal Agencies
FCC Request of Comment on Commerce Department Determination Regarding Certain Connected Vehicle Technologies
On May 23, 2025, the Federal Communications Commission (FCC or Commission) posted a public notice request for public input on potential FCC actions related to the U.S. Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) recent final rule on connected vehicles (CVs). In that final rule BIS determined that certain CV hardware or software produced by Chinese- or Russian-controlled entities poses an unacceptable risk to U.S. national security and the safety and security of U.S. persons. Given that determination, and pursuant to FCC rules, the Commission is now considering whether it should add certain CV technologies to the "Covered List" of communications equipment and services established by the Secure and Trusted Communications Act of 2019 (47 U.S.C. §§ 1601–1609).
Specifically, the FCC is considering whether the following narrow class of equipment and services, as defined, should be added to the Covered List:
- automated driving systems (ADS) and completed connected vehicles designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of the People's Republic of China, including the Hong Kong Special Administrative Region and the Macau Special Administrative Region (PRC), or the Russian Federation (Russia) and
- vehicle connectivity systems (VCS) hardware designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of the PRC or Russia and intended to be included within a completed connected vehicle in the United States; or VCS hardware with integrated covered software designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of the PRC or Russia.
Comments on the notice closed June 9, 2025.
Congress
House and Senate Move Forward with Reconciliation Bill
On May 22, 2025, the House of Representatives passed the "One Big Beautiful Bill Act" (H.R. 1), also known as the reconciliation bill. The bill includes legislation submitted by 11 House committees pursuant to provisions in the FY2025 congressional budget resolution (H. Con. Res. 14) that directed the committees to submit legislation to the House Budget Committee that will increase or decrease the deficit and increase the statutory debt limit by specified amounts. Upon passage in the House, the bill moves to the Senate, where members of that chamber are expected to make changes to the bill based on legislation produced by Senate committees. Republican leadership, including Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-LA), have expressed their intention to pass the bill before the July 4, 2025 congressional recess, but that timeline may slip because of ongoing negotiations over various provisions in the legislation.
The House-passed version of the reconciliation bill included several provisions that impact the automotive industry, including:
- The recission of Inflation Reduction Act (IRA) tax credits that provided subsidies to the electric vehicle industry
- A registration free for electric and hybrid vehicles and
- A provision related to artificial intelligence (AI) that would impose a moratorium on state and local governments from enforcing any law or regulation "regulating artificial intelligence models, artificial intelligence systems, or automated decision systems" for a period of ten years from enactment. This provision may include an automated driving system and related autonomous vehicle technologies
The Senate Finance Committee's version of the reconciliation bill also rescinded the IRA tax credits, but on a different timeline than what was included in the House version. The Senate bill did not include the electric and hybrid vehicle registration fee.
Following analysis of the bill by the Senate parliamentarian to assess compliance with the Byrd Rule and continued debate, the Senate began voting on their version of the reconciliation bill late on June 30, 2025. Early on the morning of July 1, 2025, the AI moratorium was removed from the reconciliation bill by a 99-1 vote on an amendment from Sen. Marsha Blackburn (R-TN). Sen. Blackburn had previously reached an agreement on the moratorium language with Sen. Ted Cruz (R-TX) but was later convinced that the text of the moratorium would not preserve certain Tennessee state laws on AI, which she had sought to protect.
On July 1, 2025, the Senate passed the reconciliation packaged by a vote of 51-50, with Vice President JD Vance breaking a tie. Republican Sens. Susan Collins (ME), Rand Paul (KY), and Thom Tillis (NC) joined Democrats and voted no.
States
As most state legislative sessions start to wind down, so far three new laws relating to AVs have been enacted in 2025. In June, Texas Governor Greg Abbott signed into law SB 2807, which amends Texas's current AV statute and establishes additional requirements for AV operations. Earlier this year, Montana enacted SB 67 following a multi-year effort to create a legal framework for AV operations in the state. The new law authorizes AV operations subject to rules issued by the Montana Department of Transportation and Montana Department of Justice. Finally, Virginia enacted HB 2627, which directs the state secretary of transportation to convene a working group to study AVs. The work group must issue a report, including any draft recommended legislation, to the Virginia Legislature by November 1, 2026.
Meanwhile, the California Department of Motor Vehicles (DMV) issued new proposed AV regulations in April 2025. The proposal marks a significant step for the AV trucking industry by initiating a formal rulemaking that would establish a path for deployment of heavy-duty AVs over 10,000 pounds, which have been prohibited from testing and deploying in the state. The proposed regulations would also make certain notable changes to the DMV's current regulatory framework, under which light-duty AVs have been permitted to operate since 2018. The public comment period ended on June 9, 2025, and a public hearing was held on June 10, 2025.
* The authors would like to thank Tess Brennan, Senior Autonomous ＆ Connected Mobility Analyst, for her assistance writing this newsletter.