The Road Ahead for Autonomous Vehicle Regulation

2026-05-31 · Source: The Regulatory Review · Field: Legal & Regulatory — Compliance & Risk Management, Regulatory Affairs & Government Relations · Depth: Intermediate, medium

Summary

Mark Fagan, a lecturer at Harvard Kennedy School, discusses the complex regulatory landscape for autonomous vehicles (AVs), advocating for a dual federal-state approach. He highlights SAE International's six levels of automation, noting that Level 4 AVs are operational, while Level 5 vehicles are in development. Fagan argues the federal government should define and certify AV safety requirements, creating a single framework for innovation and safety. State and local governments, however, are better suited to regulate day-to-day AV operations, allowing for localized experimentation. He points out Level 3 vehicles pose significant liability challenges, suggesting their minimization. Fagan also addresses the SELF DRIVE Act, which aims to establish federal authority for AV design and safety standards under NHTSA, and emphasizes modifying existing NHTSA requirements for AV-specific "edge cases." Despite slow adoption due to technological complexity and consumer hesitancy, Fagan is optimistic about AVs' potential to improve urban mobility with smart regulation.

Key takeaway

For policy makers developing autonomous vehicle legislation, you should advocate for a bifurcated regulatory approach. Establish federal oversight for vehicle safety standards and state control for operational rules. This division fosters innovation while allowing local communities to tailor AV integration. Prioritize minimizing Level 3 deployments due to liability complexities. Actively shape regulations to encourage shared AV models, preventing urban congestion and sprawl. Your strategic framework can optimize urban mobility and ensure public safety.

Key insights

Federal and state governments should divide autonomous vehicle regulatory responsibilities to balance safety, innovation, and local needs.

Principles

• Federal government defines AV safety.
• States regulate AV street operations.
• Minimize Level 3 AV deployments.

In practice

• Promote shared AV models.
• Restrict AV pick-up/drop-off.
• Integrate AVs for last-mile transit.

Topics

• Autonomous Vehicles
• AV Regulation
• Federal Safety Standards
• State Regulation
• SAE Automation Levels
• Urban Mobility
• Liability Assignment

Best for: Policy Maker, Legal Professional, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Regulatory Review.