U.S. Vehicle Safety Enforcement Program Overview

1. The U.S. Regulatory Approach to the Safety of Vehicles in Use Presented to Subgroup 3 (Audit and In-Service Monitoring) Of the Working Group on Validation Methods for Automated Driving (VMAD) Of GRVA March 28, 2022 Note: This is NOT a presentation by the U.S. Government

2. About this presentation • This presentation does NOT represent any views of the U.S. government and is NOT presented by a representative of the U.S. • The presenter is Daniel Carey Smith, Assistant General Counsel, Regulatory and Compliance, Waymo. • Dan participates in GRVA activities through the auspices of SAE. He is a member of SAE’s On-Road Automated Driving (ORAD) committee and SAE’s Automated Driving Definitions and Taxonomy Task Force. • Dan was the Associate Administrator for Enforcement at NHTSA from 2005 to 2010, and the Senior Associate Administrator for Vehicle Safety at NHTSA from 2010 to 2015.

3. United States Vehicle Safety Program • The National Highway Traffic Safety Administration (NHTSA) has authority over two large program areas: • highway safety (human behavior) and • vehicle safety • NHTSA’s National Center for Statistics and Analysis serves both programs by collecting and analyzing nationwide crash data submitted by the states and investigating a number of crashes that may aid NHTSA’s understanding of crash causes and injury mechanisms in crashes • NHTSA’s vehicle safety program is comprehensive: – Research – Rulemaking (standards) – Enforcement -- Safety Ratings (U.S. NCAP)

4. Vehicle Safety Enforcement Two major components of the enforcement program • Compliance with the FMVSSs (over 60 standards) • Self‐certification: manufacturers must certify that their vehicles and equipment comply with the Federal Motor Vehicle Safety Standards (FMVSS). • Prohibition: a person may not manufacture for sale, offer for sale, introduce into commerce, or import a noncompliant vehicle or equipment. • Investigation of possible safety defects • “Defect related to motor vehicle safety” is a problem in performance, construction, a component, or material that creates an unreasonable risk to safety • Manufacturers have duty to inform NHTSA of a defect that creates an unreasonable risk to safety • Note: a fully FMVSS-compliant vehicle or equipment may have a safety defect Enforcement tools include recalls, civil penalties, injunctions, consent orders

5. Recall as the remedy for noncompliance or defect • A recall involves • (1)notification to the owner of the vehicle or equipment that a recall is being conducted and what remedy is or will be available • (2) provision of a free remedy (repair, replace, or refund) to the owner for the entire population of affected vehicles or equipment • A manufacturer has a duty under federal law to conduct a recall if • (1) it learns of a safety defect or noncompliance or • (2) NHTSA decides there is a defect or noncompliance and orders a recall. • NHTSA may order a recall if it determines that a noncompliance or defect exists and after providing an opportunity for a hearing • NHTSA can seek enforcement of its order in court, where NHTSA must prove noncompliance or existence of a defect that creates an unreasonable safety risk. • Nearly all recalls are voluntary: manufacturer either initiates recall on its own or is influenced to do so by NHTSA’s investigation without need for an agency order • The great majority of recalls involve safety defects discovered in use

6. Office of Vehicle Safety Compliance (OVSC) • Manufacturers must certify compliance with all FMVSSs applicable to a motor vehicle or item of equipment at the time of its manufacture • OVSC purchases a risk-based sampling of new vehicles and equipment and tests them for compliance with the FMVSS before sale or lease to a consumer • Note: A recall for noncompliance may affect a population of vehicles in use, but NHTSA looks for noncompliance only in unused vehicles prior to sale or lease, which ensures product’s compliance has not been changed by use • OVSC may request and review the data on which the manufacturer based its self- certification • In the event of an apparent noncompliance, OVSC conducts investigations that may lead to a safety recall campaign and could result in the collection of civil penalties from the manufacturer • OVSC also plays a vital role in rulemaking by developing compliance test procedures for inclusion in safety standards

7. Office of Defects Investigation (ODI) • NHTSA’s defects investigation program looks for evidence of unreasonable risks to safety in vehicles and equipment that are in use after self-certification and sale or lease • ODI screens many sources of information about possible defects to identify likely candidates for investigation: • Complaints from the public (scores of thousands per year): received through the Auto Safety Hotline, letters, e‐ mail, vehicle owner questionnaire on Internet • Information submitted by manufacturers (see next slide) • Petitions from public to investigate a particular safety matter

8. Information Submitted by Manufacturers • Submissions to NHTSA required by 49 CFR Part 579 • Manufacturer notices, bulletins, advisories concerning defects • Foreign recall reports on vehicles or equipment identical to or substantially similar to products sold in the U.S. • Early warning reports • Reports on claims received concerning death or injury incidents • A count of property damage claims, warranty claims, consumer complaints, field reports: huge volume of data that NHTSA reviews to spot defect trends • Duties vary based on production level, vehicle or equipment type • Reports submitted quarterly • Crash information required by NHTSA’s 2021 general order • ADAS Level 2 and ADS manufacturers and other reporting entities must submit reports of crashes either immediately (severe crashes) or monthly if notified of crash and system engaged within 30 seconds of crash

9. Resources on NHTSA Programs • Risk-Based Processes for Safety Defect Analysis and Management of Recalls: https://www.nhtsa.gov/sites/nhtsa.gov/files/documents/14895_odi_ defectsrecallspubdoc_110520-v6a-tag.pdf • Early Warning Reporting Overview: https://www.nhtsa.gov/vehicle- manufacturers/early-warning-reporting • National Center for Statistics and Analysis: https://www.nhtsa.gov/data/national-center-statistics-and-analysis