Hearing of the Senate Commerce, Science and Transportation Committee - Opening Statement of Sen. Thune, Hearing on Driving Automotive Innovation and Federal Policies

Hearing

Good morning. One of the privileges of leading a committee with jurisdiction as broad as that of the Commerce Committee is that sometimes our work takes us off Capitol Hill and into the real world. In recent years, we've held field hearings in Alaska, New Hampshire, Nebraska, Florida, and yes, South Dakota. While we haven't traveled quite as far today, what we are here to discuss is no less important for all Americans, and it's great to be in a venue that will soon welcome scores of people excited about the future of the automobile.

The automobile industry is an essential part of America's economy, generating nearly one trillion dollars of economic activity each year and supporting seven million jobs across all fifty states.

And this industry is not standing still. It's hard to believe, but the auto industry spends more on research and development of new technologies than the software and aerospace industries. Today's high-tech automobile has some thirty thousand parts drawn from a global supply chain.

New technologies such as automated vehicles and new business models offering mobility as a service are poised to enable substantial growth. Key benefits include improved safety, new jobs, new transportation opportunities, and reduced congestion.

Automated vehicles (AVs) offer perhaps the largest potential gains in all of these areas. More than 37,000 people lost their lives on U.S. roads in 2016, a troubling and unacceptable increase from the year before.

According to the National Highway Traffic Safety Administration, or NHTSA, as many as 94 percent of those crashes were the result of human error. AVs, which cannot fall asleep, get distracted, or become impaired, could potentially save many thousands of lives every year.

AVs may also spur significant new economic activity. By one estimate, the wide adoption of AVs will spur a new "passenger economy" worth seven trillion dollars over the next few decades. And AVs will provide access to mobility to many Americans, such as the elderly and those with disabilities, some of whom may be unable to drive today.

If our country is to realize these benefits, policymakers must take a careful approach to these new technologies. We must allow innovation to thrive while also ensuring the technology is safe and reliable. We must also refrain from favoring one technology, business model, or type of company over another so as to avoid locking in technology before innovation and market choices can take place.

The bipartisan AV START Act, which Senator Peters and I introduced, accomplishes these goals by building on the existing regulatory framework to prioritize safety through increased reporting and oversight, thus promoting public safety and building public confidence and trust.

At the same time, AV START removes unintentional barriers to innovation in existing law and promotes a level playing field so that neither traditional automakers, tech giants, nor new startups are unfairly advantaged or disadvantaged.

If U.S. regulators are not able to foster safe testing and deployment of AV technology through modernizations like those in AV START, the rest of the world will not sit by. America currently leads the way in auto innovation, but many other countries, particularly China, are catching up. We all want America to remain competitive and see the benefits of new jobs and new economic growth.

The AV START Act is just that -- a start. As AVs become more widespread, there will be tough policy and societal questions that we must all work together to answer.

AV START contains formal processes to start answering some of these questions, such as those relating to data and how law enforcement will interact with AVs. This Committee will remain active and will build upon the strong foundation established by the AV START Act.

I want to thank Senator Peters, Ranking Member Nelson, and all the members of the Committee for their great work on this landmark piece of legislation and look forward to seeing it pass the full Senate soon.

While AV technology is approaching quickly, the auto industry is innovating in other areas with immediate benefits. Advanced driver assistance systems, such as lane keeping assist and automatic emergency braking, are available in an increasing number of vehicles on the road today and are already saving lives. And new developments in fuel technology, such as hybrid and all-electric vehicles, and increased use of biofuels such as ethanol, boost fuel efficiency and reduce pollution.

To explore these issues, we have a great panel of witnesses today representing organizations that are leading the way in many areas of automotive innovation:

* Mr. Luke Schneider, President of Audi Mobility US;

* Mr. Mike Mansuetti, President of Robert Bosch North America;

* Mr. Tim Kentley-Kay, CEO and Co-Founder of Zoox, Inc.; and

* Dr. Randy Avent, President of Florida Polytechnic University.

Thank you all for being here and I look forward to your testimony.

I will now turn to Senator Nelson for his opening remarks.

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