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115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 115-294

======================================================================

 
    SAFELY ENSURING LIVES FUTURE DEPLOYMENT AND RESEARCH IN VEHICLE 
                             EVOLUTION ACT

                                _______
                                

 September 5, 2017.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Walden, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3388]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3388) to provide for information on highly 
automated driving systems to be made available to prospective 
buyers, having considered the same, report favorably thereon 
with amendments and recommend that the bill as amended do pass.

                                CONTENTS


Purpose and Summary..............................................    11
Background and Need for Legislation..............................    11
Committee Consideration..........................................    12
Committee Votes..................................................    13
Oversight Findings and Recommendations...........................    15
New Budget Authority, Entitlement Authority, and Tax Expenditures    15
Congressional Budget Office Estimate.............................    15
Federal Mandates Statement.......................................    18
Statement of General Performance Goals and Objectives............    18
Duplication of Federal Programs..................................    18
Committee Cost Estimate..........................................    18
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......    18
Disclosure of Directed Rule Makings..............................    18
Advisory Committee Statement.....................................    18
Applicability to Legislative Branch..............................    19
Section-by-Section Analysis of the Legislation...................    19
Changes in Existing Law Made by the Bill, as Reported............    21

    The amendments are as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Safely Ensuring 
Lives Future Deployment and Research In Vehicle Evolution Act'' or the 
``SELF DRIVE Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. NHTSA authority and State preemption for autonomous motor 
vehicles.
Sec. 4. Updated or new motor vehicle safety standards for highly 
automated vehicles.
Sec. 5. Cybersecurity of automated driving systems.
Sec. 6. General exemptions.
Sec. 7. Motor vehicle testing or evaluation.
Sec. 8. Information on highly automated driving systems made available 
to prospective buyers.
Sec. 9. Highly Automated Vehicle Advisory Council.
Sec. 10. Rear seat occupant alert system.
Sec. 11. Headlamps.
Sec. 12. Privacy plan required for highly automated vehicles.
Sec. 13. Definitions.

SEC. 2. PURPOSE.

  The purpose of this Act is to memorialize the Federal role in 
ensuring the safety of highly automated vehicles as it relates to 
design, construction, and performance, by encouraging the testing and 
deployment of such vehicles.

SEC. 3. NHTSA AUTHORITY AND STATE PREEMPTION FOR AUTONOMOUS MOTOR 
                    VEHICLES.

  Section 30103 of title 49, United States Code, is amended--
          (1) by amending subsection (b) to read as follows:
  ``(b) Preemption.--
          ``(1) Highly automated vehicles.--No State or political 
        subdivision of a State may maintain, enforce, prescribe, or 
        continue in effect any law or regulation regarding the design, 
        construction, or performance of highly automated vehicles, 
        automated driving systems, or components of automated driving 
        systems unless such law or regulation is identical to a 
        standard prescribed under this chapter.
          ``(2) Motor vehicle standard.--When a motor vehicle safety 
        standard is in effect under this chapter, a State or political 
        subdivision of a State may prescribe or continue in effect a 
        standard applicable to the same aspect of performance of a 
        motor vehicle or motor vehicle equipment only if the standard 
        is identical to the standard prescribed under this chapter.
          ``(3) Rules of construction.--
                  ``(A) In general.--Nothing in this subsection may be 
                construed to prohibit a State or a political 
                subdivision of a State from maintaining, enforcing, 
                prescribing, or continuing in effect any law or 
                regulation regarding registration, licensing, driving 
                education and training, insurance, law enforcement, 
                crash investigations, safety and emissions inspections, 
                congestion management of vehicles on the street within 
                a State or political subdivision of a State, or traffic 
                unless the law or regulation is an unreasonable 
                restriction on the design, construction, or performance 
                of highly automated vehicles, automated driving 
                systems, or components of automated driving systems.
                  ``(B) Motor vehicle dealers.--Nothing in this 
                subsection may be construed to prohibit a State or 
                political subdivision of a State from maintaining, 
                enforcing, prescribing, or continuing in effect any law 
                or regulation regarding the sale, distribution, repair, 
                or service of highly automated vehicles, automated 
                driving systems, or components of automated driving 
                systems by a dealer, manufacturer, or distributor.
                  ``(C) Conformity with federal law.--Nothing in this 
                subsection shall be construed to preempt, restrict, or 
                limit a State or political subdivision of a State from 
                acting in accordance with any other Federal law.
          ``(4) Higher performance requirement.--However, the United 
        States Government, a State, or a political subdivision of a 
        State may prescribe a standard for a motor vehicle, motor 
        vehicle equipment, highly automated vehicle, or automated 
        driving system obtained for its own use that imposes a higher 
        performance requirement than that required by the otherwise 
        applicable standard under this chapter.
          ``(5) State enforcement.--A State may enforce a standard that 
        is identical to a standard prescribed under this chapter.''; 
        and
          (2) by amending subsection (e) to read as follows:
  ``(e) Common Law Liability.--
          ``(1) In general.--Compliance with a motor vehicle safety 
        standard prescribed under this chapter does not exempt a person 
        from liability at common law.
          ``(2) Rule of construction.--Nothing in this section shall be 
        construed to preempt common law claims.''.

SEC. 4. UPDATED OR NEW MOTOR VEHICLE SAFETY STANDARDS FOR HIGHLY 
                    AUTOMATED VEHICLES.

  (a) In General.--Chapter 301 of subtitle VI of title 49, United 
States Code, is amended by inserting after section 30128 the following 
new section:

``Sec. 30129. Updated or new motor vehicle safety standards for highly 
                    automated vehicles

  ``(a) Safety Assessment Certification.--
          ``(1) Final rule.--Not later than 24 months after the date of 
        the enactment of this section, the Secretary of Transportation 
        shall issue a final rule requiring the submission of safety 
        assessment certifications regarding how safety is being 
        addressed by each entity developing a highly automated vehicle 
        or an automated driving system. Such rule shall include--
                  ``(A) a specification of which entities are required 
                to submit such certifications;
                  ``(B) a clear description of the relevant test 
                results, data, and other contents required to be 
                submitted by such entity, in order to demonstrate that 
                such entity's vehicles are likely to maintain safety, 
                and function as intended and contain fail safe 
                features, to be included in such certifications; and
                  ``(C) a specification of the circumstances under 
                which such certifications are required to be updated or 
                resubmitted.
          ``(2) Interim requirement.--Until the final rule issued under 
        paragraph (1) takes effect, safety assessment letters shall be 
        submitted to the National Highway Traffic Safety Administration 
        as contemplated by the Federal Automated Vehicles Policy issued 
        in September 2016, or any successor guidance issued on highly 
        automated vehicles requiring a safety assessment letter.
          ``(3) Periodic review and updating.--Not later than 5 years 
        after the date on which the final rule is issued under 
        paragraph (1), and not less frequently than every 5 years 
        thereafter, the Secretary shall--
                  ``(A) review such rule; and
                  ``(B) update such rule if the Secretary considers it 
                necessary.
          ``(4) Rules of construction.--
                  ``(A) No conditions on deployment.--Nothing in this 
                subsection may be construed to limit or affect the 
                Secretary's authority under any other provision of law. 
                The Secretary may not condition deployment or testing 
                of highly automated vehicles on review of safety 
                assessment certifications.
                  ``(B) No new authorities.--No new authorities are 
                granted to the Secretary under this section other than 
                the promulgation of the rule pursuant to paragraph (1).
          ``(5) Review and research.--To accommodate the development 
        and deployment of highly automated vehicles and to ensure the 
        safety and security of highly automated vehicles and motor 
        vehicles and others that will share the roads with highly 
        automated vehicles, not later than 180 days after the date of 
        the enactment of this section, the Secretary shall--
                  ``(A) initiate or continue a review of the Federal 
                motor vehicle safety standards in effect on such date 
                of enactment; and
                  ``(B) initiate or continue research regarding new 
                Federal motor vehicle safety standards.
  ``(b) Rulemaking and Safety Priority Plan.--
          ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Secretary shall make available 
        to the public and submit to the Committee on Energy and 
        Commerce of the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate a 
        rulemaking and safety priority plan, as necessary to 
        accommodate the development and deployment of highly automated 
        vehicles and to ensure the safety and security of highly 
        automated vehicles and motor vehicles and others that will 
        share the roads with highly automated vehicles, to--
                  ``(A) update the motor vehicle safety standards in 
                effect on such date of enactment;
                  ``(B) issue new motor vehicle safety standards; and
                  ``(C) consider how objective ranges in performance 
                standards could be used to test motor vehicle safety 
                standards, which safety standards would be appropriate 
                for such testing, and whether additional authority 
                would facilitate such testing.
          ``(2) Inclusion of priorities.--
                  ``(A) Priorities.--The plan required by paragraph (1) 
                shall detail the overall priorities of the National 
                Highway Traffic Safety Administration for the 5 years 
                following the issuance of the plan, including both 
                priorities with respect to highly automated vehicles 
                and priorities with respect to other safety initiatives 
                of the Administration, in order to meet the Nation's 
                motor vehicle safety challenges.
                  ``(B) Identification of elements that may require 
                standards.--For highly automated vehicles, the National 
                Highway Traffic Safety Administration should identify 
                elements that may require performance standards 
                including human machine interface, sensors, and 
                actuators, and consider process and procedure standards 
                for software and cybersecurity as necessary.
          ``(3) Periodic updating.--The plan required by paragraph (1) 
        shall be updated every 2 years, or more frequently if the 
        Secretary considers it necessary.
          ``(4) Rulemaking proceedings on updated or new motor vehicle 
        safety standards.--
                  ``(A) In general.--Not later than 18 months after the 
                date of enactment of this section, the Secretary shall 
                initiate the first rulemaking proceeding in accordance 
                with the rulemaking and safety priority plan required 
                by paragraph (1).
                  ``(B) Prioritization of subsequent proceedings.--The 
                Secretary shall continue initiating rulemaking 
                proceedings in accordance with such plan. The Secretary 
                may change at any time those priorities to address 
                matters the Secretary considers of greater priority. If 
                the Secretary makes such a change, the Secretary shall 
                complete an interim update of the priority plan, make 
                such update available to the public, and submit such 
                update to the Committee on Energy and Commerce of the 
                House of Representatives and the Committee on Commerce, 
                Science, and Transportation of the Senate.''.
  (b) Clerical Amendment.--The analysis for chapter 301 of subtitle VI 
of title 49, United States Code, is amended by inserting after the item 
relating to section 30128 the following new item:

        ``30129. Updated or new motor vehicle safety standards for 
                        highly automated vehicles.''.

SEC. 5. CYBERSECURITY OF AUTOMATED DRIVING SYSTEMS.

  (a) In General.--Chapter 301 of subtitle VI of title 49, United 
States Code, is amended by inserting after section 30129 (as added by 
section 4) the following new section:

``Sec. 30130. Cybersecurity of automated driving systems

  ``(a) Cybersecurity Plan.--A manufacturer may not sell, offer for 
sale, introduce or deliver for introduction into commerce, or import 
into the United States, any highly automated vehicle, vehicle that 
performs partial driving automation, or automated driving system unless 
such manufacturer has developed a cybersecurity plan that includes the 
following:
          ``(1) A written cybersecurity policy with respect to the 
        practices of the manufacturer for detecting and responding to 
        cyber attacks, unauthorized intrusions, and false and spurious 
        messages or vehicle control commands. This policy shall 
        include--
                  ``(A) a process for identifying, assessing, and 
                mitigating reasonably foreseeable vulnerabilities from 
                cyber attacks or unauthorized intrusions, including 
                false and spurious messages and malicious vehicle 
                control commands; and
                  ``(B) a process for taking preventive and corrective 
                action to mitigate against vulnerabilities in a highly 
                automated vehicle or a vehicle that performs partial 
                driving automation, including incident response plans, 
                intrusion detection and prevention systems that 
                safeguard key controls, systems, and procedures through 
                testing or monitoring, and updates to such process 
                based on changed circumstances.
          ``(2) The identification of an officer or other individual of 
        the manufacturer as the point of contact with responsibility 
        for the management of cybersecurity.
          ``(3) A process for limiting access to automated driving 
        systems.
          ``(4) A process for employee training and supervision for 
        implementation and maintenance of the policies and procedures 
        required by this section, including controls on employee access 
        to automated driving systems.
  ``(b) Effective Date.--This section shall take effect 180 days after 
the date of enactment of this section.''.
  (b) Enforcement Authority.--Section 30165(a)(1) of title 49, United 
States Code, is amended by inserting ``30130,'' after ``30127,''.
  (c) Clerical Amendment.--The analysis for chapter 301 of subtitle VI 
of title 49, United States Code, is amended by inserting after the item 
relating to section 30129 (as added by section 4) the following new 
item:

``30130. Cybersecurity of automated driving systems.''.

SEC. 6. GENERAL EXEMPTIONS.

  Section 30113 of title 49, United States Code, is amended--
          (1) in subsection (b)(3)(B)--
                  (A) in clause (iii), by striking ``; or'' and 
                inserting a semicolon;
                  (B) in clause (iv), by striking the period at the end 
                and inserting ``; or''; and
                  (C) by adding at the end the following:
          ``(v) the exemption would make easier the development or 
        field evaluation of--
                  ``(I) a feature of a highly automated vehicle 
                providing a safety level at least equal to the safety 
                level of the standard for which exemption is sought; or
                  ``(II) a highly automated vehicle providing an 
                overall safety level at least equal to the overall 
                safety level of nonexempt vehicles.'';
          (2) in subsection (c), by adding at the end the following:
          ``(5) if the application is made under subsection 
        (b)(3)(B)(v) of this section--
                  ``(A) such development, testing, and other data 
                necessary to demonstrate that the motor vehicle is a 
                highly automated vehicle; and
                  ``(B) a detailed analysis that includes supporting 
                test data, including both on-road and validation and 
                testing data showing (as applicable) that--
                          ``(i) the safety level of the feature at 
                        least equals the safety level of the standard 
                        for which exemption is sought; or
                          ``(ii) the vehicle provides an overall safety 
                        level at least equal to the overall safety 
                        level of nonexempt vehicles.'';
          (3) in subsection (d), by striking ``A manufacturer is 
        eligible'' and all that follows and inserting the following:
          ``(1) Eligibility under subsection (b)(3)(B)(i).--A 
        manufacturer is eligible for an exemption under subsection 
        (b)(3)(B)(i) of this section (including an exemption under 
        subsection (b)(3)(B)(i) relating to a bumper standard referred 
        to in subsection (b)(1)) only if the Secretary determines that 
        the manufacturer's total motor vehicle production in the most 
        recent year of production is not more than 10,000.
          ``(2) Eligibility under subsection (b)(3)(B)(iii).--A 
        manufacturer is eligible for an exemption under subsection 
        (b)(3)(B)(iii) of this section only if the Secretary determines 
        the exemption is for not more than 2,500 vehicles to be sold in 
        the United States in any 12-month period.
          ``(3) Eligibility under subsection (b)(3)(B)(ii), (iv), or 
        (v).--A manufacturer is eligible for an exemption under 
        subsection (b)(3)(B)(ii), (iv), or (v) of this section only if 
        the Secretary determines the exemption is for not more than 
        100,000 vehicles per manufacturer to be sold, leased, or 
        otherwise introduced into commerce in the United States in any 
        12-month period.
          ``(4) Limitation on number of vehicles exempted.--All 
        exemptions granted to a manufacturer under subsections 
        (b)(3)(B)(i) through (v) shall not exceed a total of (i) 25,000 
        vehicles manufactured within the first 12-month period, (ii) 
        50,000 vehicles manufactured within the second 12-month period, 
        (iii) 100,000 vehicles manufactured within the third 12-month 
        period, and, (iv) 100,000 vehicles manufactured within the 
        fourth 12-month period. Any renewals under subsections 
        (b)(3)(B)(i) through (v) shall not exceed a total of 100,000 
        vehicles manufactured within a 12-month period.'';
          (4) in subsection (e), by striking ``An exemption or 
        renewal'' and all that follows and inserting the following:
          ``(1) Exemption under subsection (b)(3)(B)(i).--An exemption 
        or renewal under subsection (b)(3)(B)(i) of this section may be 
        granted for not more than 3 years.
          ``(2) Exemption under subsection (b)(3)(B)(iii).--An 
        exemption or renewal under subsection (b)(3)(B)(iii) this 
        section may be granted for not more than 2 years.
          ``(3) Exemption under subsection (b)(3)(B)(ii), (iv), or 
        (v).--An exemption or renewal under subsection (b)(3)(B)(ii), 
        (iv), or (v) of this section may be granted for not more than 4 
        years.''; and
          (5) by adding at the end the following:
  ``(i) Limitation on Certain Exemptions.--No exemption from 
crashworthiness standards of motor vehicle safety standards shall be 
granted under subsection (b)(3)(B)(v) until the Secretary issues the 
safety assessment certification rule pursuant to section 30129(a) and 
the rulemaking and safety priority plan pursuant to section 30129(b) 
and one year has passed from the date by which the Secretary has issued 
both such rule and such plan. This subsection shall not apply to 
exemptions from occupant protection standards if the exemption is for a 
vehicle that will not carry its operator or passengers. This subsection 
shall not apply to exemptions from crashworthiness standards if the 
exemption sought is for a standard addressing the steering control 
system and it is for a vehicle that--
          ``(1) will not have a steering control system;
          ``(2) provides impact protection to an occupant in the front 
        left seat at a level at least equal to the level provided in 
        nonexempt vehicles; and
          ``(3) provides a safety level at least equal to the safety 
        level of the standard for which the exemption is sought.
  ``(j) Reporting Requirement.--A manufacturer granted an exemption 
under subsection (b)(3)(B)(ii), (iv), or (v), shall provide information 
about all crashes of which it has actual knowledge involving such 
exempted vehicles, regardless of whether a claim is submitted to the 
manufacturer, in accordance with part 579 of title 49, Code of Federal 
Regulations.
  ``(k) Process and Analysis.--
          ``(1) In general.--Not later than 180 days after the date of 
        enactment of this subsection, the Secretary of Transportation 
        shall publish in the Federal Register a notice that details the 
        process and analysis used for the consideration of exemption or 
        renewal applications under subsection (b)(3)(B)(v).
          ``(2) Periodic review and updating.--The notice required by 
        paragraph (1) shall be reviewed every 5 years and updated if 
        the Secretary considers it necessary.
  ``(l) Exemption Database.--
          ``(1) In general.--The Secretary shall establish a publicly 
        available and searchable electronic database of each motor 
        vehicle for which an exemption from motor vehicle safety 
        standards prescribed under this chapter or a bumper standard 
        prescribed under chapter 325 has been granted.
          ``(2) Vehicle identification number.--The database 
        established under paragraph (1) shall be searchable by Vehicle 
        Identification Number and shall include no information 
        identifying the vehicle owner.''.

SEC. 7. MOTOR VEHICLE TESTING OR EVALUATION.

  Section 30112(b)(10) of title 49, United States Code, is amended--
          (1) by striking ``that prior to the date of enactment of this 
        paragraph'';
          (2) in subparagraph (A), by striking ``motor vehicles into 
        the United States that are certified'' and inserting ``into the 
        United States motor vehicles that are certified, or motor 
        vehicle equipment utilized in a motor vehicle that is 
        certified,'';
          (3) in subparagraph (C), by striking the period at the end 
        and inserting ``; or'';
          (4) by redesignating subparagraphs (A) through (C) as clauses 
        (i) through (iii), respectively, and moving their margins 2 ems 
        to the right;
          (5) by striking ``evaluation by a manufacturer that agrees 
        not to sell or offer for sale'' and inserting the following: 
        ``evaluation by--
                  ``(A) a manufacturer that agrees not to sell or lease 
                or offer for sale or lease''; and
          (6) by adding at the end the following:
                  ``(B) a manufacturer of highly automated vehicles, 
                automated driving systems, or components of automated 
                driving systems that agrees not to sell or lease or 
                offer for sale or lease the highly automated vehicles, 
                automated driving systems, or components of automated 
                driving systems at the conclusion of the testing or 
                evaluation and--
                          ``(i) has submitted to the Secretary--
                                  ``(I) the name of the individual, 
                                partnership, corporation, or 
                                institution of higher education and a 
                                point of contact;
                                  ``(II) the residence address of the 
                                individual, partnership, corporation, 
                                or institution of higher education and 
                                State of incorporation if applicable;
                                  ``(III) a description of each type of 
                                motor vehicle used during development 
                                of highly automated vehicles, automated 
                                driving systems, or components of 
                                automated driving systems manufactured 
                                by the individual, partnership, 
                                corporation, or institution of higher 
                                education; and
                                  ``(IV) proof of insurance for any 
                                State in which the individual, 
                                partnership, corporation, or 
                                institution of higher education intends 
                                to test or evaluate highly automated 
                                vehicles; and
                          ``(ii) if applicable, has identified an agent 
                        for service of process in accordance with part 
                        551 of title 49, Code of Federal 
                        Regulations.''.

SEC. 8. INFORMATION ON HIGHLY AUTOMATED DRIVING SYSTEMS MADE AVAILABLE 
                    TO PROSPECTIVE BUYERS.

  (a) Research.--Not later than 3 years after the date of enactment of 
this Act, the Secretary of Transportation shall complete research to 
determine the most effective method and terminology for informing 
consumers for each highly automated vehicle or a vehicle that performs 
partial driving automation about the capabilities and limitations of 
that vehicle. The Secretary shall determine whether such information is 
based upon or includes the terminology as defined by SAE International 
in Recommended Practice Report J3016 (published September 2016) or 
whether such description should include alternative terminology.
  (b) Rulemaking.--After the completion of the study required under 
subsection (a), the Secretary shall initiate a rulemaking proceeding to 
require manufacturers to inform consumers of the capabilities and 
limitations of a vehicle's driving automation system or feature for any 
highly automated vehicle or any vehicle that performs partial driving 
automation.

SEC. 9. HIGHLY AUTOMATED VEHICLE ADVISORY COUNCIL.

  (a) Establishment.--Subject to the availability of appropriations, 
not later than 6 months after the date of enactment of this Act, the 
Secretary of Transportation shall establish in the National Highway 
Traffic Safety Administration a Highly Automated Vehicle Advisory 
Council (hereinafter referred to as the ``Council'').
  (b) Membership.--Members of the Council shall include a diverse group 
representative of business, academia and independent researchers, State 
and local authorities, safety and consumer advocates, engineers, labor 
organizations, environmental experts, a representative of the National 
Highway Traffic Safety Administration, and other members determined to 
be appropriate by the Secretary. Any subcommittee of the Council shall 
be composed of not less than 15 and not more than 30 members appointed 
by the Secretary.
  (c) Terms.--Members of the Council shall be appointed by the 
Secretary of Transportation and shall serve for a term of three years.
  (d) Vacancies.--Any vacancy occurring in the membership of the 
Council shall be filled in the same manner as the original appointment 
for the position being vacated. The vacancy shall not affect the power 
of the remaining members to execute the duties of the Council.
  (e) Duties and Subcommittees.--The Council may form subcommittees as 
needed to undertake information gathering activities, develop technical 
advice, and present best practices or recommendations to the Secretary 
regarding--
          (1) advancing mobility access for the disabled community with 
        respect to the deployment of automated driving systems to 
        identify impediments to their use and ensure an awareness of 
        the needs of the disabled community as these vehicles are being 
        designed for distribution in commerce;
          (2) mobility access for senior citizens and populations 
        underserved by traditional public transportation services and 
        educational outreach efforts with respect to the testing and 
        distribution of highly automated vehicles in commerce;
          (3) cybersecurity for the testing, deployment, and updating 
        of automated driving systems with respect to supply chain risk 
        management, interactions with Information Sharing and Analysis 
        Centers and Information Sharing and Analysis Organizations, and 
        a framework for identifying and implementing recalls of motor 
        vehicles or motor vehicle equipment;
          (4) the development of a framework that allows manufacturers 
        of highly automated vehicles to share with each other and the 
        National Highway Traffic Safety Administration relevant, 
        situational information related to any testing or deployment 
        event on public streets resulting or that reasonably could have 
        resulted in damage to the vehicle or any occupant thereof and 
        validation of such vehicles in a manner that does not risk 
        public disclosure of such information or disclosure of 
        confidential business information;
          (5) labor and employment issues that may be affected by the 
        deployment of highly automated vehicles;
          (6) the environmental impacts of the deployment of highly 
        automated vehicles, and the development and deployment of 
        alternative fuel infrastructure alongside the development and 
        deployment of highly automated vehicles;
          (7) protection of consumer privacy and security of 
        information collected by highly automated vehicles;
          (8) cabin safety for highly automated vehicle passengers, and 
        how automated driving systems may impact collision vectors, 
        overall crashworthiness, and the use and placement of airbags, 
        seatbelts, anchor belts, head restraints, and other protective 
        features in the cabin;
          (9) the testing and deployment of highly automated vehicles 
        and automated driving systems in areas that are rural, remote, 
        mountainous, insular, or unmapped to evaluate operational 
        limitations caused by natural geographical or man-made 
        features, or adverse weather conditions, and to enhance the 
        safety and reliability of highly automated vehicles and 
        automated driving systems used in such areas with such features 
        or conditions; and
          (10) independent verification and validation procedures for 
        highly automated vehicles that may be useful to safeguard motor 
        vehicle safety.
  (f) Report to Congress.--The recommendations of the Council shall 
also be reported to the Committee on Energy and Commerce of the House 
of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate.
  (g) Federal Advisory Committee Act.--The establishment and operation 
of the Council and any subcommittees of the Council shall conform to 
the requirements of the Federal Advisory Committee Act (5 U.S.C. App.).
  (h) Technical Assistance.--On request of the Council, the Secretary 
shall provide such technical assistance to the Council as the Secretary 
determines to be necessary to carry out the Council's duties.
  (i) Detail of Federal Employees.--On the request of the Council, the 
Secretary may detail, with or without reimbursement, any of the 
personnel of the Department of Transportation to the Council to assist 
the Council in carrying out its duties. Any detail shall not interrupt 
or otherwise affect the civil service status or privileges of the 
Federal employee.
  (j) Payment and Expenses.--Members of the Council shall serve without 
pay, except travel and per diem will be paid each member for meetings 
called by the Secretary.
  (k) Termination.--The Council and any subcommittees of the Council 
shall terminate 6 years after the date of enactment of this Act.

SEC. 10. REAR SEAT OCCUPANT ALERT SYSTEM.

  (a) In General.--Chapter 301 of subtitle VI of title 49, United 
States Code, is amended by inserting after section 30130 (as added by 
section 5) the following new section:

``Sec. 30131. Rear seat occupant alert system

  ``(a) Rulemaking Required.--Not later than 2 years after the date of 
enactment of this section, the Secretary shall issue a final rule 
requiring all new passenger motor vehicles weighing less than 10,000 
pounds gross vehicle weight to be equipped with an alarm system to 
alert the operator to check rear designated seating positions after the 
vehicle motor or engine is deactivated by the operator.
  ``(b) Phase-in.--The rule issued pursuant to subsection (a) shall 
require full compliance with the rule beginning on September 1st of the 
calendar year that begins 2 years after the date on which the final 
rule is issued.
  ``(c) Definitions.--For purposes of this section--
          ``(1) the term `passenger motor vehicle' has the meaning 
        given that term in section 32101; and
          ``(2) the term `rear designated seating position' means any 
        designated seating position that is rearward of the front 
        seat.''.
  (b) Clerical Amendment.--The analysis for chapter 301 of subtitle VI 
of title 49, United States Code, is amended by inserting after the item 
relating to section 30130 (as added by section 5) the following new 
item:

``30131. Rear seat occupant alert system.''.

SEC. 11. HEADLAMPS.

  (a) Safety Research Initiative.--Not later than 2 years after the 
date of enactment of this Act, the Secretary of Transportation shall 
complete research into the development of updated motor vehicle safety 
standards or performance requirements for motor vehicle headlamps that 
would improve the performance of headlamps and improve overall safety.
  (b) Rulemaking or Report.--
          (1) Rulemaking.--After the completion of the research 
        required by subsection (a), the Secretary shall initiate a 
        rulemaking proceeding to revise the motor vehicle safety 
        standards regarding headlamps if the Secretary determines that 
        a revision of the standards meets the requirements and 
        considerations set forth in subsections (a) and (b) of section 
        30111 of title 49, United States Code.
          (2) Report.--If the Secretary determines that a revision to 
        the standard described in paragraph (1) does not meet the 
        requirements and considerations set forth in such subsections, 
        the Secretary shall submit a report describing the reasons for 
        not revising the standard to the Committee on Energy and 
        Commerce of the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate.

SEC. 12. PRIVACY PLAN REQUIRED FOR HIGHLY AUTOMATED VEHICLES.

  (a) Privacy Plan.--A manufacturer may not sell, offer for sale, 
introduce or deliver for introduction in interstate commerce, or import 
into the United States, any highly automated vehicle, vehicle that 
performs partial driving automation, or automated driving system unless 
the manufacturer has developed a privacy plan that includes the 
following:
          (1) A written privacy plan with respect to the collection, 
        use, sharing, and storage of information about vehicle owners 
        or occupants collected by a highly automated vehicle, vehicle 
        that performs partial driving automation, or automated driving 
        system. Such policy shall include the following:
                  (A) The practices of the manufacturer with respect to 
                the way that information about vehicle owners or 
                occupants is collected, used, shared, or stored.
                  (B) The practices of the manufacturer with respect to 
                the choices offered to vehicle owners or occupants 
                regarding the collection, use, sharing, and storage of 
                such information.
                  (C) The practices of the manufacturer with respect to 
                the data minimization, de-identification, and retention 
                of information about vehicle owners or occupants.
                  (D) The practices of the manufacturer with respect to 
                extending its privacy plan to the entities it shares 
                such information with.
          (2) A method for providing notice to vehicle owners or 
        occupants about the privacy policy.
          (3) If information about vehicle owners or occupants is 
        altered or combined so that the information can no longer 
        reasonably be linked to the highly automated vehicle, vehicle 
        that performs partial driving automation, or automated driving 
        system from which the information is retrieved, the vehicle 
        owner, or occupants, the manufacturer is not required to 
        include the process or practices regarding that information in 
        the privacy policy.
          (4) If information about an occupant is anonymized or 
        encrypted the manufacturer is not required to include the 
        process or practices regarding that information in the privacy 
        policy.
  (b) Study.--The Federal Trade Commission shall conduct a study and 
submit a report to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate on the highly automated vehicle 
marketplace, including an examination of the following issues:
          (1) Which entities in the ecosystem have access to vehicle 
        owner or occupant data.
          (2) Which entities in the highly automated vehicle 
        marketplace have privacy plans.
          (3) What are the terms and disclosures made in such privacy 
        plans, including regarding the collection, use, sharing, and 
        storage of vehicle owner or occupant data.
          (4) What disclosures are made to consumers about such privacy 
        plans.
          (5) What methods are available to enable deletion of 
        information about vehicle owners or occupants from any data 
        storage system within the vehicle (other than a system that is 
        critical to the safety or operation of the vehicle) before the 
        vehicle is sold, leased, or rented, or otherwise occupied by a 
        new owner or occupant.
  (c) Federal Trade Commission Enforcement.--A violation of subsection 
(a) shall be treated as a an unfair or deceptive act or practice within 
the meaning of section 5(a)(1) of the Federal Trade Commission Act (15 
U.S.C. 45(a)(1)). The Federal Trade Commission shall enforce this 
section in the same manner, by the same means, and with the same 
jurisdiction, powers, and duties as though all applicable terms and 
provisions of the Federal Trade Commission Act were incorporated into 
and made a part of this Act.
  (d) Effective Date.--This section shall take effect 180 days after 
the date of enactment of this section and shall only apply to highly 
automated vehicles, vehicles that perform partial driving automation, 
or automated driving systems first introduced after the effective date 
of this section.

SEC. 13. DEFINITIONS.

  (a) Amendments to Title 49, United States Code.--Section 30102 of 
title 49, United States Code, is amended--
          (1) in subsection (a)--
                  (A) by redesignating paragraphs (1) through (13) as 
                paragraphs (2), (3), (4), (5), (8), (9), (10), (11), 
                (12), (13), (15), (16), and (17), respectively;
                  (B) by inserting before paragraph (2) (as so 
                redesignated) the following:
          ``(1) `automated driving system' means the hardware and 
        software that are collectively capable of performing the entire 
        dynamic driving task on a sustained basis, regardless of 
        whether such system is limited to a specific operational design 
        domain.'';
                  (C) by inserting after paragraph (5) (as so 
                redesignated) the following:
          ``(6) `dynamic driving task' means all of the real time 
        operational and tactical functions required to operate a 
        vehicle in on-road traffic, excluding the strategic functions 
        such as trip scheduling and selection of destinations and 
        waypoints, and including--
                  ``(A) lateral vehicle motion control via steering;
                  ``(B) longitudinal vehicle motion control via 
                acceleration and deceleration;
                  ``(C) monitoring the driving environment via object 
                and event detection, recognition, classification, and 
                response preparation;
                  ``(D) object and event response execution;
                  ``(E) maneuver planning; and
                  ``(F) enhancing conspicuity via lighting, signaling, 
                and gesturing.
          ``(7) `highly automated vehicle'--
                  ``(A) means a motor vehicle equipped with an 
                automated driving system; and
                  ``(B) does not include a commercial motor vehicle (as 
                defined in section 31101).'';
                  (D) by inserting after paragraph (13) (as so 
                redesignated) the following:
          ``(14) `operational design domain' means the specific 
        conditions under which a given driving automation system or 
        feature thereof is designed to function.''; and
                  (E) by adding at the end the following:
          ``(18) `vehicle that performs partial driving automation' 
        does not include a commercial motor vehicle (as defined in 
        section 31101).''; and
          (2) by adding at the end the following:
  ``(c) Revisions to Certain Definitions.--
          ``(1) If SAE International (or its successor organization) 
        revises the definition of any of the terms defined in paragraph 
        (1), (6), or (14) of subsection (a) in Recommended Practice 
        Report J3016, it shall notify the Secretary of the revision. 
        The Secretary shall publish a notice in the Federal Register to 
        inform the public of the new definition unless, within 90 days 
        after receiving notice of the new definition and after opening 
        a period for public comment on the new definition, the 
        Secretary notifies SAE International (or its successor 
        organization) that the Secretary has determined that the new 
        definition does not meet the need for motor vehicle safety, or 
        is otherwise inconsistent with the purposes of this chapter. If 
        the Secretary so notifies SAE International (or its successor 
        organization), the existing definition in subsection (a) shall 
        remain in effect.
          ``(2) If the Secretary does not reject a definition revised 
        by SAE International (or its successor organization) as 
        described in paragraph (1), the Secretary shall promptly make 
        any conforming amendments to the regulations and standards of 
        the Secretary that are necessary. The revised definition shall 
        apply for purposes of this chapter. The requirements of section 
        553 of title 5 shall not apply to the making of any such 
        conforming amendments.
          ``(3) Pursuant to section 553 of title 5, the Secretary may 
        update any of the definitions in paragraph (1), (6), or (14) of 
        subsection (a) if the Secretary determines that materially 
        changed circumstances regarding highly automated vehicles have 
        impacted motor vehicle safety such that the definitions need to 
        be updated to reflect such circumstances.''.
  (b) Definitions in This Act.--As used in this Act--
          (1) the term ``automated driving system'' has the meaning 
        given such term in subsection (a) of section 30102 of title 49, 
        United States Code, subject to any revisions made to the 
        definition of such term pursuant to subsection (c) of such 
        section;
          (2) the term ``highly automated vehicle'' has the meaning 
        given such term in subsection (a) of section 30102 of title 49, 
        United States Code, not subject to any revision under 
        subsection (c) of such section; and
          (3) the term ``vehicle that performs partial driving 
        automation'' has the meaning given such term in subsection (a) 
        of section 30102 of title 49, United States Code, not subject 
        to any revision under subsection (c) of such section.

  Amend the title so as to read: ``A bill to amend title 49, 
United States Code, regarding the authority of the National 
Highway Traffic Safety Administration over highly automated 
vehicles, to provide safety measures for such vehicles, and for 
other purposes.''.

    Amend the title so as to read:
    A bill to amend title 49, United States Code, regarding the 
authority of the National Highway Traffic Safety Administration 
over highly automated vehicles, to provide safety measures for 
such vehicles, and for other purposes.

                          Purpose and Summary

    The Safely Ensuring Lives Future Deployment and Research in 
Vehicle Evolution (SELF DRIVE) Act supports the testing, 
development, and deployment of highly automated vehicles in the 
United States. The SELF DRIVE Act encourages economic 
development, jobs, and continued investment by incumbent 
entities and new entrants developing lifesaving automotive 
technology to address historic rising fatality rates on our 
nation's highways.
    The purpose of the SELF DRIVE Act is to uphold State and 
local governments' authority regarding registration, licensing, 
driving education and training, insurance, law enforcement, 
crash investigations, safety and emissions inspections, 
congestion management of vehicles on their streets, and traffic 
laws and regulations as well as memorialize the Federal role in 
ensuring the safety of highly automated vehicles.

                  Background and Need for Legislation

    The National Highway Traffic Safety Administration (NHTSA) 
is responsible for issuing safety standards to meet its mission 
of saving lives, preventing injuries, and reducing economic 
costs due to road traffic crashes. NHTSA accomplishes these 
goals by issuing Federal motor vehicle safety standards, 
pursuing enforcement actions, and requiring manufacturers to 
recall vehicles that have safety-related defects or fail to 
meet a safety standard. Manufacturers certify that their 
vehicles meet all applicable standards after testing in 
laboratories, on private or public automotive proving grounds, 
test tracks, and on public roads.
    There were 35,092 traffic fatalities and 2.44 million 
people injured on U.S. roadways in 2015.\1\ Estimates for 2016 
indicate the number of fatalities will increase by 6 percent, 
which would be the first time in almost a decade that more than 
40,000 people have died in traffic accidents in a single 
year.\2\ Ninety-four percent of highway fatalities are 
attributable to human error.\3\
---------------------------------------------------------------------------
    \1\https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/
812318.
    \2\Neil Boudette, ``U.S. Traffic Deaths Rise for a Second Straight 
Year'' New York Times, Feb. 15, 2017, https://www.nytimes.com/2017/02/
15/business/highway-traffic-safety.html?_r=0.
    \3\``U.S. Traffic Deaths Jump by 10.4 Percent in First Half of 
2016.'' The Associated Press, Oct. 5, 2016, http://www.nbcnews.com/
news/us-news/u-s-traffic-deaths-jump-10-4-percent-first-half-n660241.
---------------------------------------------------------------------------
    Self-driving vehicles and the technology underpinning such 
vehicles have the potential to reduce significantly traffic 
fatalities by removing the element of human error and improve 
transportation mobility and accessibility for communities, 
including the elderly and disabled. The legislation addresses 
cybersecurity and privacy so manufacturers will continue to 
consider these issues early in the development cycle. While the 
commercial deployment of self-driving vehicles is years in the 
future, the testing and development of such systems is 
happening in the United States and abroad today.
    Improving the exemption process at NHTSA to allow for the 
agency to learn more about this technology as entities develop 
and prove the safety of their systems and could help move the 
agency forward in reviewing and updating existing safety 
regulations. The safety assessment certification process in the 
legislation could improve NHTSA's understanding of the 
technology and cannot be used to delay the testing or 
deployment of self-driving cars.
    Twenty States have enacted laws regarding some aspect of 
self-driving vehicles. Varying State and local laws regarding 
the design, construction, or performance of these vehicles 
could create barriers preventing these vehicles from traveling 
across State borders, using the interstate highway system, or 
impede investment in the future automotive technology, 
including advanced or connected infrastructure, in the United 
States.
    For example, earlier this year North Carolina enacted a law 
requiring the steering wheel, brakes, and other equipment used 
to operate a vehicle be stowed away so that an occupant cannot 
assume control while the vehicle is in self-driving mode.\4\ 
Under New York law, a driver is required to keep one hand on 
the steering wheel at all times in all vehicles.\5\ One car 
designed to comply with North Carolina's law cannot also comply 
with New York law. As highlighted in testimony before the 
Committee, manufacturers and other entities developing this 
technology are closely watching State and Federal legislative 
activity to make decisions about research and development 
investments in the United States and in other countries.
---------------------------------------------------------------------------
    \4\http://www.ncleg.net/Sessions/2017/Bills/House/PDF/H469v7.pdf.
    \5\http://buffalonews.com/2017/07/31/new-york-takes-baby-steps-
toward-self-driving-vehicles/.
---------------------------------------------------------------------------
    Throughout meetings and hearings related to the 
legislation, Members and stakeholders brought forward 
improvements to existing procedures at NHTSA that would support 
the safe testing, development, and deployment of self-driving 
vehicles in the United States. A number of these policy 
improvements are included in the legislation. Several policy 
additions are included in the legislation to address existing 
safety issues and priority setting processes at NHTSA.

                        Committee Consideration

    The Subcommittee on Digital Commerce and Consumer 
Protection held a hearing entitled ``Self-Driving Vehicle 
Legislation'' on fourteen bills, on June 23, 2017 (many of 
these bills were consolidated into H.R. 3388, as amended by the 
Committee). The Subcommittee received testimony from:
           Mitch Bainwol, President and CEO, Alliance 
        of Automobile Manufacturers;
           John Bozzella, President and CEO, Global 
        Automakers;
           Tim Day, Senior Vice President, Chamber 
        Technology Engagement Center, U.S. Chamber of Commerce;
           David L. Strickland, Counsel, Self-Driving 
        Coalition for Safer Streets and Partner, Venable LLP;
           Alan Morrison, Lerner Family Associate Dean 
        for Public Interest and Public Service Law, The George 
        Washington University Law School; and,
           Will Wallace, Policy Analyst, Consumers 
        Union.
    On July 19, 2017, the Subcommittee on Digital Commerce and 
Consumer Protection met in open markup session and forwarded a 
discussion draft entitled ``a bill to amend title 49, United 
States Code, to provide the National Highway Traffic Safety 
Administration with authority over highly automated vehicles, 
to provide safety measures for such vehicles, and for other 
purposes'' to the full Committee by a voice vote. On July 27, 
2017, the full Committee on Energy and Commerce met in open 
markup session and ordered H.R. 3388, as amended, reported to 
the House by a recorded vote 54 yeas and 0 nays.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
following reflects the record votes taken during the Committee 
consideration:


                 Oversight Findings and Recommendations

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing and made 
findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
3388 would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, the following is 
the cost estimate provided by the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, September 1, 2017.
Hon. Greg Walden,
Chairman, Committee on Energy, and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3388, the SELF 
DRIVE Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sarah Puro.
            Sincerely,
                                              Keith Hall, Director.
    Enclosure.

H.R. 3388--SELF DRIVE Act

    Summary: H.R. 3388 would clarify the federal role in 
regulating vehicles that can drive without a person controlling 
the vehicle. Those vehicles are defined in the bill as Highly 
Automated Vehicles (HAVs). The bill would require the National 
Highway Traffic Safety Administration (NHSTA) to complete 
several rulemakings, establish an advisory council on HAVs, and 
create a publicly available database about manufacturers that 
receive exemptions from current law. The bill would require 
vehicle manufacturers to comply with cybersecurity plans and 
would make manufacturers that fail to comply subject to civil 
penalties.
    CBO estimates that implementing the legislation would cost 
$10 million over the 2018-2022 period, assuming appropriation 
of the necessary amounts.
    Enacting H.R. 3388 would increase revenues from civil 
penalties; therefore, pay-as-you-go procedures apply. However, 
CBO estimates that those increases would total less than 
$500,000 over the 2018-2027 period. Enacting the bill would not 
affect direct spending.
    CBO estimates that enacting H.R. 3388 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2028.
    H.R. 3388 would impose an intergovernmental mandate, as 
defined in the Unfunded Mandates Reform Act (UMRA), by 
preempting the authority of state and local governments to 
regulate the design, construction, and performance of HAVs, 
unless such regulations are at least protective as federal 
regulations. Although it would limit the application of state 
and local regulations, the bill would impose no duty on state 
or local governments that would result in additional spending 
or a loss of revenues.
    H.R. 3388 would impose private-sector mandates as defined 
in UMRA on manufacturers of automobiles. Based on information 
about motor vehicle sales in the United States and information 
about current business practices from industry sources, CBO 
estimates that the cost of complying with those mandates would 
exceed the annual threshold established in UMRA ($156 million 
in 2017, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 3388 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                             By fiscal year, in millions of dollars--
                                                ----------------------------------------------------------------
                                                   2017     2018     2019     2020     2021     2022   2017-2022
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level..................        0        1        2        2        2        3        10
Estimated Outlays..............................        0        1        2        2        2        3        10
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted near the beginning of fiscal year 
2018, that the necessary amounts will be appropriated each 
year, and that spending will follow historical patterns for 
similar activities.
    H.R. 3388 would require NHTSA to complete several 
rulemakings regarding standards and testing of HAVs, establish 
an advisory council on HAVs, and create a publicly available 
database about manufacturers that receive exemptions from 
current law.
    Based on an analysis of information from NHTSA, CBO 
estimates that the rulemakings would require the agency to hire 
about 12 new people. CBO expects that about half of those 
people would be hired in 2018 and the rest in 2019. Based on 
the average wages and compensation for federal employees of 
NHTSA, CBO estimates that each additional person would cost 
about $175,000 per year. As a result, enacting the rulemaking 
provisions would cost $9 million over the 2018-2022 period.
    Under the bill, NHTSA also would have to create a database 
of manufactures of HAVs that receive exemptions from current 
safety standards that apply to motor vehicles and make that 
information publically available. Based on information from the 
agency, CBO estimates that implementing this provision would 
cost about $1 million over the 2018-2022 period.
    Pay-as-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. CBO estimates that enacting the bill would increase 
revenues over the 2017-2027 period by less than $500,000. 
Enacting the bill would not affect direct spending.
    Increase in long-term direct spending and deficits: CBO 
estimates that enacting H.R. 3388 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2028.
    Estimated impact on state, local, and tribal governments: 
H.R. 3388 would impose an intergovernmental mandate, as defined 
in UMRA, by preempting the authority of state and local 
governments to regulate the design, construction, and 
performance of HAVs, unless such regulations are at least 
protective as federal regulations. State and local governments 
are not currently regulating these aspects of HAVs. Although 
the bill would limit the application of state and local 
regulations, it would impose no duty on state or local 
governments that would result in additional spending or a loss 
of revenues.
    Estimated impact on the private sector: H.R. 3388 would 
impose private-sector mandates as defined in UMRA on 
manufacturers of automobiles. Specifically, the bill would 
require manufacturers to:
           Install an alarm system in all passenger 
        vehicles that would alert drivers to check the rear 
        seat of their vehicles after turning off the engine;
           Submit certifications to NHTSA that describe 
        how safety issues are being addressed in HAVs;
           Prepare cybersecurity and privacy plans for 
        HAVs; and
           Inform customers about the capabilities and 
        limitations of HAVs in accordance with a future 
        rulemaking.
    The bill also would require NHSTA to update or issue new 
motor vehicle safety standards to address automated systems. 
Those standards may facilitate the development of HAVs, but 
also may require manufacturers of those vehicles to incur 
additional costs.
    Based on an analysis of data on vehicle sales from the 
Bureau of Economic Analysis, CBO estimates that manufacturers 
would need to install alarm systems in more than 10 million 
motor vehicles annually. The cost of installing a system would 
depend on the rule to be issued by the Secretary of 
Transportation. Some vehicles currently contain systems that 
may comply with the rule. However, because of the large number 
of vehicles that would be affected by the mandate, CBO 
estimates that the cost of the mandate would exceed $100 
million annually. On the basis of information from industry 
experts, CBO estimates that the cost of complying with the 
mandates to prepare plans, submit safety assessment 
certifications, and provide information to customers would 
total tens of millions of dollars over the next five year 
period.
    The net cost of the mandates would equal the additional 
costs incurred, offset by any savings associated with complying 
with the bill's requirements. For example, some of the costs of 
the mandate may be mitigated if the motor vehicle safety 
standards for automated systems lower the cost of producing 
such vehicles. However, CBO expects that most of those savings 
would be realized a few years after manufacturers have begun to 
incur the costs to install the rear-seat alarm system. In 
aggregate, CBO estimates that the annual net cost of complying 
with all of the mandates in the bill would exceed the threshold 
established in UMRA for private-sector mandates ($156 million 
in 2017, adjusted annually for inflation) in at least some of 
the first five years the mandates are in effect.
    Estimate prepared by: Federal costs: Sarah Puro; Impact on 
state, local, and tribal governments: Jon Sperl; Impact on the 
Private Sector: Amy Petz.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         Statement of General Performance Goals and Objectives

    The goal of H.R. 3388 is to encourage the testing and 
deployment of highly automated vehicles by memorializing the 
State and Federal roles' to protect roadway and motor vehicle 
safety.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 3388 establishes or reauthorizes a program of the Federal 
Government known to be duplicative of another Federal program, 
a program that was included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139, or a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    In compliance with clause 9(e), 9(f), and 9(g) of rule XXI 
of the Rules of the House of Representatives, the Committee 
finds that H.R. 3388 contains no earmarks, limited tax 
benefits, or limited tariff benefits.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, the Committee finds 
that the following directed rule makings are contained in H.R. 
3388:
          1. Section 4 requires the Secretary of Transportation 
        to issue a final rule requiring the submission of 
        safety assessment certifications regarding how safety 
        is being addressed by each entity developing a highly 
        automated vehicle or automated driving system.
          2. Section 10 requires the Secretary of 
        Transportation to issue a final rule requiring all new 
        passenger motor vehicles weighing less than 10,000 
        pounds gross vehicle weight to be equipped with an 
        alarm system to alert the operator to check rear 
        designated seating positions after the vehicle motor 
        engine is deactivated by the operator.

                      Advisory Committee Statement

    H.R. 3388 establishes a Highly Automated Vehicle Advisory 
Council. The functions of the Council are not being performed 
by one or more agencies or by an advisory committee already in 
existence, or by enlarging the mandate of an existing advisory 
committee.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title; Table of contents

    Section 1 provides that the Act may be cited as the 
``Safely Ensuring Lives Future Deployment and Research In 
Vehicle Evolution Act'' or the ``SELF DRIVE Act''. This section 
includes the table of contents.

Section 2. Purpose

    Section 2 states that the purpose of this Act is to 
memorialize the Federal role in ensuring the safety of highly 
automated vehicles as it relates to design, construction, and 
performance, by encouraging the testing and deployment of such 
vehicles.

Section 3. NHTSA authority and State preemption for autonomous motor 
        vehicles

    Section 3 maintains the current roles and responsibilities 
for States and localities regarding registration, licensing, 
driving education and training, insurance, law enforcement, 
crash investigations, safety and emissions inspections, 
congestion management on streets, and traffic laws and 
regulations. This section also maintains the Federal role in 
ensuring the safety of the design, construction, or performance 
of highly automated vehicles, automated driving systems, or 
components of automated driving systems. States may impose 
identical standards to those prescribed under chapter 301 of 
title 49, U.S. Code.
    Nothing in the section impacts a State or locality acting 
in accordance with other Federal laws, preempts common law 
claims, or impacts State motor vehicle franchise laws.

Section 4. Updated or new motor vehicle safety standards for highly 
        automated vehicles

    Section 4 establishes a new subsection requiring the 
Secretary of Transportation (Secretary) to complete a 
rulemaking requiring the submission of a safety assessment 
certification regarding how safety is being addressed by each 
entity developing a highly automated vehicle or automated 
driving system. The Secretary may not condition deployment or 
testing of highly automated vehicles on review of safety 
assessment certifications.
    This section requires the Secretary to publish a rulemaking 
and safety priority plan to ensure the safety and security of 
highly automated vehicles and motor vehicles and others that 
will share the roads with highly automated vehicles. The 
Secretary must initiate the first rulemaking in such plan not 
later than 18 months after the date of enactment.

Section 5. Cybersecurity of automated driving systems

    Section 5 requires manufacturers to develop a cybersecurity 
plan that includes certain elements before selling or 
introducing into commerce highly automated vehicles, vehicles 
that performs partial driving automation, or automated driving 
systems.

Section 6. General exemptions

    Section 6 amends section 30113 of title 49 of the U.S. Code 
to add a new exemption category, increase the number of 
exemptions the Secretary may grant, and increase the length of 
time exemptions are valid. Additionally, this section adds a 
limitation for certain exemptions, a reporting requirement for 
manufacturers, directs the Secretary to publish the process and 
analysis used for consideration of exemptions, and creates a 
new exemption database.
    This section amends section 30113(b) to include a new 
exemption specific to highly automated vehicles and requires 
manufacturers demonstrate in their application that there has 
been no reduction in safety. This section amends section 
30113(d) to increase the number of exemptions a manufacturer 
may request and creates a phase-in process whereby a 
manufacturer may seek 25,000 exemptions within the first 12-
month period and that number increases to 100,000 within the 
fourth 12-month period. This section amends section 30113(e) by 
increasing the length from 2 years to 4 years for which an 
exemption is valid.
    This section does not allow exemptions from crashworthiness 
to be granted until the secretary issues the safety assessment 
certification rule pursuant to Section 30129(a) and the safety 
priority plan pursuant to section 30129(b) and one year has 
passed from the date by which both have been issued. This 
section adds a new reporting requirement for manufacturers 
regarding all crashes of which the manufacturer has actual 
knowledge involving vehicles exempted under section 
30113(b)(3)(B)(ii), (iv), or (v). This section directs the 
Secretary to publish in the Federal Register a notice that 
details the process and analysis used for the consideration of 
exemption or renewal applications under section 
30113(b)(3)(B)(v). This section creates a publicly available 
and searchable electronic database of each motor vehicle for 
which an exemption has been granted.

Section 7. Motor vehicle testing or evaluation

    Section 7 amends section 30112(b)(10) of title 49 of the 
U.S. Code to include suppliers and manufacturers of highly 
automated vehicles, automated driving systems, or components of 
automated driving systems. This section requires manufacturers 
of highly automated vehicles, automated driving systems and 
components of automated driving systems to disclose identifying 
information as well as proof of insurance for any State in 
which the entity intends to test or evaluate.

Section 8. Information on highly automated driving systems made 
        available to prospective buyers

    Section 8 requires the Secretary to complete research to 
determine the most effective method and terminology for 
informing consumers about the capabilities and limitations of 
highly automated vehicles or vehicles that perform partial 
driving automation and then initiate a rulemaking requiring 
manufacturers to inform consumers about such capabilities and 
limitations.

Section 9. Highly Automated Vehicle Advisory Council

    Section 9 directs the Secretary to establish the ``Highly 
Automated Vehicle Advisory Council'' within NHTSA. The Council 
and any Subcommittees it may form shall undertake information 
gathering activities, develop technical advice, and present 
best practices and recommendations to the Secretary regarding 
mobility access for the disabled community, senior citizens, 
and populations underserved by traditional public 
transportation service, independent verification and validation 
procedures and cybersecurity for highly automated vehicles, 
protection of consumer privacy and security, protection and 
sharing of confidential business information, testing and 
deployment in areas that are rural and mountainous, as well as 
labor, employment, environmental and cabin safety issues. This 
section also requires the Council to publish and submit to 
Congress any recommendations made to the Secretary.

Section 10. Rear seat occupant alert system

    Section 10 directs the Secretary to issue a final rule to 
require all new passenger motor vehicles be equipped with an 
alarm system to alert the vehicle operator to check a rear 
seating position after the vehicle motor or engine is 
deactivated.

Section 11. Headlamps

    Section 11 directs the Secretary to research the 
development of updated safety standards or performance 
requirements for motor vehicle headlamps to enhance their 
performance and improve overall safety.

Section 12. Privacy plan required for highly automated vehicles

    Section 12 requires manufacturers to develop a written 
privacy plan for highly automated vehicles, vehicles that 
perform partial driving automation, or automated driving 
systems. The Federal Trade Commission must submit a report to 
Congress on its study of manufacturer privacy plans and 
practices.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 49, UNITED STATES CODE




           *       *       *       *       *       *       *
SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS

           *       *       *       *       *       *       *


PART A--GENERAL

           *       *       *       *       *       *       *


                   CHAPTER 301--MOTOR VEHICLE SAFETY


                          SUBCHAPTER I--GENERAL

Sec.
30101. Purpose and policy.
     * * * * * * *

                 SUBCHAPTER II--STANDARDS AND COMPLIANCE

     * * * * * * *
30129. Updated or new motor vehicle safety standards for highly 
          automated vehicles.
30130. Cybersecurity of automated driving systems.
30131. Rear seat occupant alert system.
     * * * * * * *

SUBCHAPTER I--GENERAL

           *       *       *       *       *       *       *


Sec. 30102. Definitions

  (a) General Definitions.--In this chapter--
          (1) ``automated driving system'' means the hardware 
        and software that are collectively capable of 
        performing the entire dynamic driving task on a 
        sustained basis, regardless of whether such system is 
        limited to a specific operational design domain.
          [(1)] (2) ``covered rental vehicle'' means a motor 
        vehicle that--
                  (A) has a gross vehicle weight rating of 
                10,000 pounds or less;
                  (B) is rented without a driver for an initial 
                term of less than 4 months; and
                  (C) is part of a motor vehicle fleet of 35 or 
                more motor vehicles that are used for rental 
                purposes by a rental company.
          [(2)] (3) ``dealer'' means a person selling and 
        distributing new motor vehicles or motor vehicle 
        equipment primarily to purchasers that in good faith 
        purchase the vehicles or equipment other than for 
        resale.
          [(3)] (4) ``defect'' includes any defect in 
        performance, construction, a component, or material of 
        a motor vehicle or motor vehicle equipment.
          [(4)] (5) ``distributor'' means a person primarily 
        selling and distributing motor vehicles or motor 
        vehicle equipment for resale.
          (6) ``dynamic driving task'' means all of the real 
        time operational and tactical functions required to 
        operate a vehicle in on-road traffic, excluding the 
        strategic functions such as trip scheduling and 
        selection of destinations and waypoints, and 
        including--
                  (A) lateral vehicle motion control via 
                steering;
                  (B) longitudinal vehicle motion control via 
                acceleration and deceleration;
                  (C) monitoring the driving environment via 
                object and event detection, recognition, 
                classification, and response preparation;
                  (D) object and event response execution;
                  (E) maneuver planning; and
                  (F) enhancing conspicuity via lighting, 
                signaling, and gesturing.
          (7) ``highly automated vehicle''--
                  (A) means a motor vehicle equipped with an 
                automated driving system; and
                  (B) does not include a commercial motor 
                vehicle (as defined in section 31101).
          [(5)] (8) ``interstate commerce'' means commerce 
        between a place in a State and a place in another State 
        or between places in the same State through another 
        State.
          [(6)] (9) ``manufacturer'' means a person--
                  (A) manufacturing or assembling motor 
                vehicles or motor vehicle equipment; or
                  (B) importing motor vehicles or motor vehicle 
                equipment for resale.
          [(7)] (10) ``motor vehicle'' means a vehicle driven 
        or drawn by mechanical power and manufactured primarily 
        for use on public streets, roads, and highways, but 
        does not include a vehicle operated only on a rail 
        line.
          [(8)] (11) ``motor vehicle equipment'' means--
                  (A) any system, part, or component of a motor 
                vehicle as originally manufactured;
                  (B) any similar part or component 
                manufactured or sold for replacement or 
                improvement of a system, part, or component, or 
                as an accessory or addition to a motor vehicle; 
                or
                  (C) any device or an article or apparel, 
                including a motorcycle helmet and excluding 
                medicine or eyeglasses prescribed by a licensed 
                practitioner, that--
                          (i) is not a system, part, or 
                        component of a motor vehicle; and
                          (ii) is manufactured, sold, 
                        delivered, or offered to be sold for 
                        use on public streets, roads, and 
                        highways with the apparent purpose of 
                        safeguarding users of motor vehicles 
                        against risk of accident, injury, or 
                        death.
          [(9)] (12) ``motor vehicle safety'' means the 
        performance of a motor vehicle or motor vehicle 
        equipment in a way that protects the public against 
        unreasonable risk of accidents occurring because of the 
        design, construction, or performance of a motor 
        vehicle, and against unreasonable risk of death or 
        injury in an accident, and includes nonoperational 
        safety of a motor vehicle.
          [(10)] (13) ``motor vehicle safety standard'' means a 
        minimum standard for motor vehicle or motor vehicle 
        equipment performance.
          (14) ``operational design domain'' means the specific 
        conditions under which a given driving automation 
        system or feature thereof is designed to function.
          [(11)] (15) ``rental company'' means a person who--
                  (A) is engaged in the business of renting 
                covered rental vehicles; and
                  (B) uses for rental purposes a motor vehicle 
                fleet of 35 or more covered rental vehicles, on 
                average, during the calendar year.
          [(12)] (16) ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the 
        Northern Mariana Islands, Guam, American Samoa, and the 
        Virgin Islands.
          [(13)] (17) ``United States district court'' means a 
        district court of the United States, a United States 
        court for Guam, the Virgin Islands, and American Samoa, 
        and the district court for the Northern Mariana 
        Islands.
          (18) ``vehicle that performs partial driving 
        automation'' does not include a commercial motor 
        vehicle (as defined in section 31101).
  (b) Limited Definitions.--(1) In sections 30117(b), 30118-
30121, and 30166(f) of this title--
          (A) ``adequate repair'' does not include repair 
        resulting in substantially impaired operation of a 
        motor vehicle or motor vehicle equipment;
          (B) ``first purchaser'' means the first purchaser of 
        a motor vehicle or motor vehicle equipment other than 
        for resale;
          (C) ``original equipment'' means motor vehicle 
        equipment (including a tire) installed in or on a motor 
        vehicle at the time of delivery to the first purchaser;
          (D) ``replacement equipment'' means motor vehicle 
        equipment (including a tire) that is not original 
        equipment;
          (E) a brand name owner of a tire marketed under a 
        brand name not owned by the manufacturer of the tire is 
        deemed to be the manufacturer of the tire;
          (F) a defect in original equipment, or noncompliance 
        of original equipment with a motor vehicle safety 
        standard prescribed under this chapter, is deemed to be 
        a defect or noncompliance of the motor vehicle in or on 
        which the equipment was installed at the time of 
        delivery to the first purchaser;
          (G) a manufacturer of a motor vehicle in or on which 
        original equipment was installed when delivered to the 
        first purchaser is deemed to be the manufacturer of the 
        equipment; and
          (H) a retreader of a tire is deemed to be the 
        manufacturer of the tire.
  (2) The Secretary of Transportation may prescribe regulations 
changing paragraph (1)(C), (D), (F), or (G) of this subsection.
  (c) Revisions to Certain Definitions.--
          (1) If SAE International (or its successor 
        organization) revises the definition of any of the 
        terms defined in paragraph (1), (6), or (14) of 
        subsection (a) in Recommended Practice Report J3016, it 
        shall notify the Secretary of the revision. The 
        Secretary shall publish a notice in the Federal 
        Register to inform the public of the new definition 
        unless, within 90 days after receiving notice of the 
        new definition and after opening a period for public 
        comment on the new definition, the Secretary notifies 
        SAE International (or its successor organization) that 
        the Secretary has determined that the new definition 
        does not meet the need for motor vehicle safety, or is 
        otherwise inconsistent with the purposes of this 
        chapter. If the Secretary so notifies SAE International 
        (or its successor organization), the existing 
        definition in subsection (a) shall remain in effect.
          (2) If the Secretary does not reject a definition 
        revised by SAE International (or its successor 
        organization) as described in paragraph (1), the 
        Secretary shall promptly make any conforming amendments 
        to the regulations and standards of the Secretary that 
        are necessary. The revised definition shall apply for 
        purposes of this chapter. The requirements of section 
        553 of title 5 shall not apply to the making of any 
        such conforming amendments.
          (3) Pursuant to section 553 of title 5, the Secretary 
        may update any of the definitions in paragraph (1), 
        (6), or (14) of subsection (a) if the Secretary 
        determines that materially changed circumstances 
        regarding highly automated vehicles have impacted motor 
        vehicle safety such that the definitions need to be 
        updated to reflect such circumstances.

Sec. 30103. Relationship to other laws

  (a) Uniformity of Regulations.--The Secretary of 
Transportation may not prescribe a safety regulation related to 
a motor vehicle subject to subchapter I of chapter 135 of this 
title that differs from a motor vehicle safety standard 
prescribed under this chapter. However, the Secretary may 
prescribe, for a motor vehicle operated by a carrier subject to 
subchapter I of chapter 135, a safety regulation that imposes a 
higher standard of performance after manufacture than that 
required by an applicable standard in effect at the time of 
manufacture.
  [(b) Preemption.--(1) When a motor vehicle safety standard is 
in effect under this chapter, a State or a political 
subdivision of a State may prescribe or continue in effect a 
standard applicable to the same aspect of performance of a 
motor vehicle or motor vehicle equipment only if the standard 
is identical to the standard prescribed under this chapter. 
However, the United States Government, a State, or a political 
subdivision of a State may prescribe a standard for a motor 
vehicle or motor vehicle equipment obtained for its own use 
that imposes a higher performance requirement than that 
required by the otherwise applicable standard under this 
chapter.
  [(2) A State may enforce a standard that is identical to a 
standard prescribed under this chapter.]
  (b) Preemption.--
          (1) Highly automated vehicles.--No State or political 
        subdivision of a State may maintain, enforce, 
        prescribe, or continue in effect any law or regulation 
        regarding the design, construction, or performance of 
        highly automated vehicles, automated driving systems, 
        or components of automated driving systems unless such 
        law or regulation is identical to a standard prescribed 
        under this chapter.
          (2) Motor vehicle standard.--When a motor vehicle 
        safety standard is in effect under this chapter, a 
        State or political subdivision of a State may prescribe 
        or continue in effect a standard applicable to the same 
        aspect of performance of a motor vehicle or motor 
        vehicle equipment only if the standard is identical to 
        the standard prescribed under this chapter.
          (3) Rules of construction.--
                  (A) In general.--Nothing in this subsection 
                may be construed to prohibit a State or a 
                political subdivision of a State from 
                maintaining, enforcing, prescribing, or 
                continuing in effect any law or regulation 
                regarding registration, licensing, driving 
                education and training, insurance, law 
                enforcement, crash investigations, safety and 
                emissions inspections, congestion management of 
                vehicles on the street within a State or 
                political subdivision of a State, or traffic 
                unless the law or regulation is an unreasonable 
                restriction on the design, construction, or 
                performance of highly automated vehicles, 
                automated driving systems, or components of 
                automated driving systems.
                  (B) Motor vehicle dealers.--Nothing in this 
                subsection may be construed to prohibit a State 
                or political subdivision of a State from 
                maintaining, enforcing, prescribing, or 
                continuing in effect any law or regulation 
                regarding the sale, distribution, repair, or 
                service of highly automated vehicles, automated 
                driving systems, or components of automated 
                driving systems by a dealer, manufacturer, or 
                distributor.
                  (C) Conformity with federal law.--Nothing in 
                this subsection shall be construed to preempt, 
                restrict, or limit a State or political 
                subdivision of a State from acting in 
                accordance with any other Federal law.
          (4) Higher performance requirement.--However, the 
        United States Government, a State, or a political 
        subdivision of a State may prescribe a standard for a 
        motor vehicle, motor vehicle equipment, highly 
        automated vehicle, or automated driving system obtained 
        for its own use that imposes a higher performance 
        requirement than that required by the otherwise 
        applicable standard under this chapter.
          (5) State enforcement.--A State may enforce a 
        standard that is identical to a standard prescribed 
        under this chapter.
  (c) Antitrust Laws.--This chapter does not--
          (1) exempt from the antitrust laws conduct that is 
        unlawful under those laws; or
          (2) prohibit under the antitrust laws conduct that is 
        lawful under those laws.
  (d) Warranty Obligations and Additional Legal Rights and 
Remedies.--Sections 30117(b), 30118-30121, 30166(f), and 
30167(a) and (b) of this title do not establish or affect a 
warranty obligation under a law of the United States or a 
State. A remedy under those sections and sections 30161 and 
30162 of this title is in addition to other rights and remedies 
under other laws of the United States or a State.
  [(e) Common Law Liability.--Compliance with a motor vehicle 
safety standard prescribed under this chapter does not exempt a 
person from liability at common law.]
  (e) Common Law Liability.--
          (1) In general.--Compliance with a motor vehicle 
        safety standard prescribed under this chapter does not 
        exempt a person from liability at common law.
          (2) Rule of construction.--Nothing in this section 
        shall be construed to preempt common law claims.

           *       *       *       *       *       *       *


SUBCHAPTER II--STANDARDS AND COMPLIANCE

           *       *       *       *       *       *       *


Sec. 30112. Prohibitions on manufacturing, selling, and importing 
                    noncomplying motor vehicles and equipment

  (a) General.--(1) Except as provided in this section, 
sections 30113 and 30114 of this title, and subchapter III of 
this chapter, a person may not manufacture for sale, sell, 
offer for sale, introduce or deliver for introduction in 
interstate commerce, or import into the United States, any 
motor vehicle or motor vehicle equipment manufactured on or 
after the date an applicable motor vehicle safety standard 
prescribed under this chapter takes effect unless the vehicle 
or equipment complies with the standard and is covered by a 
certification issued under section 30115 of this title.
  (2) Except as provided in this section, sections 30113 and 
30114 of this title, and subchapter III of this chapter, a 
school or school system may not purchase or lease a new 15-
passenger van if it will be used significantly by, or on behalf 
of, the school or school system to transport preprimary, 
primary, or secondary school students to or from school or an 
event related to school, unless the 15-passenger van complies 
with the motor vehicle standards prescribed for school buses 
and multifunction school activity buses under this title. This 
paragraph does not apply to the purchase or lease of a 15-
passenger van under a contract executed before the date of 
enactment of this paragraph.
  (3) Except as provided in this section, section 30114, 
subsections (i) and (j) of section 30120, and subchapter III, a 
person may not sell, offer for sale, introduce or deliver for 
introduction in interstate commerce, or import into the United 
States any motor vehicle or motor vehicle equipment if the 
vehicle or equipment contains a defect related to motor vehicle 
safety about which notice was given under section 30118(c) or 
an order was issued under section 30118(b). Nothing in this 
paragraph may be construed to prohibit the importation of a new 
motor vehicle that receives a required recall remedy before 
being sold to a consumer in the United States.
  (b) Nonapplication.--This section does not apply to--
          (1) the sale, offer for sale, or introduction or 
        delivery for introduction in interstate commerce of a 
        motor vehicle or motor vehicle equipment after the 
        first purchase of the vehicle or equipment in good 
        faith other than for resale;
          (2) a person--
                  (A) establishing that the person had no 
                reason to know, despite exercising reasonable 
                care, that a motor vehicle or motor vehicle 
                equipment does not comply with applicable motor 
                vehicle safety standards prescribed under this 
                chapter;
                  (B) holding, without knowing about the 
                noncompliance and before the vehicle or 
                equipment is first purchased in good faith 
                other than for resale, a certificate issued by 
                a manufacturer or importer stating the vehicle 
                or equipment complies with applicable standards 
                prescribed under this chapter; or
                  (C) having no reason to know, despite 
                exercising reasonable care, that a motor 
                vehicle or motor vehicle equipment contains a 
                defect related to motor vehicle safety about 
                which notice was given under section 30118(c) 
                or an order was issued under section 30118(b);
          (3) a motor vehicle or motor vehicle equipment 
        intended only for export, labeled for export on the 
        vehicle or equipment and on the outside of any 
        container of the vehicle or equipment, and exported;
          (4) a motor vehicle the Secretary of Transportation 
        decides under section 30141 of this title is capable of 
        complying with applicable standards prescribed under 
        this chapter;
          (5) a motor vehicle imported for personal use by an 
        individual who receives an exemption under section 
        30142 of this title;
          (6) a motor vehicle under section 30143 of this title 
        imported by an individual employed outside the United 
        States;
          (7) a motor vehicle under section 30144 of this title 
        imported on a temporary basis;
          (8) a motor vehicle or item of motor vehicle 
        equipment under section 30145 of this title requiring 
        further manufacturing;
          (9) a motor vehicle that is at least 25 years old; or
          (10) the introduction of a motor vehicle in 
        interstate commerce solely for purposes of testing or 
        [evaluation by a manufacturer that agrees not to sell 
        or offer for sale] evaluation by--
                  (A) a manufacturer that agrees not to sell or 
                lease or offer for sale or lease  the motor 
                vehicle at the conclusion of the testing or 
                evaluation and [that prior to the date of 
                enactment of this paragraph]--
                          [(A)] (i) has manufactured and 
                        distributed [motor vehicles into the 
                        United States that are certified] into 
                        the United States motor vehicles that 
                        are certified, or motor vehicle 
                        equipment utilized in a motor vehicle 
                        that is certified, to comply with all 
                        applicable Federal motor vehicle safety 
                        standards;
                          [(B)] (ii) has submitted to the 
                        Secretary appropriate manufacturer 
                        identification information under part 
                        566 of title 49, Code of Federal 
                        Regulations; and
                          [(C)] (iii) if applicable, has 
                        identified an agent for service of 
                        process in accordance with part 551 of 
                        such title[.]; or
                  (B) a manufacturer of highly automated 
                vehicles, automated driving systems, or 
                components of automated driving systems that 
                agrees not to sell or lease or offer for sale 
                or lease the highly automated vehicles, 
                automated driving systems, or components of 
                automated driving systems at the conclusion of 
                the testing or evaluation and--
                          (i) has submitted to the Secretary--
                                  (I) the name of the 
                                individual, partnership, 
                                corporation, or institution of 
                                higher education and a point of 
                                contact;
                                  (II) the residence address of 
                                the individual, partnership, 
                                corporation, or institution of 
                                higher education and State of 
                                incorporation if applicable;
                                  (III) a description of each 
                                type of motor vehicle used 
                                during development of highly 
                                automated vehicles, automated 
                                driving systems, or components 
                                of automated driving systems 
                                manufactured by the individual, 
                                partnership, corporation, or 
                                institution of higher 
                                education; and
                                  (IV) proof of insurance for 
                                any State in which the 
                                individual, partnership, 
                                corporation, or institution of 
                                higher education intends to 
                                test or evaluate highly 
                                automated vehicles; and
                          (ii) if applicable, has identified an 
                        agent for service of process in 
                        accordance with part 551 of title 49, 
                        Code of Federal Regulations.

Sec. 30113. General exemptions

  (a) Definition.--In this section, ``low-emission motor 
vehicle'' means a motor vehicle meeting the standards for new 
motor vehicles applicable to the vehicle under section 202 of 
the Clean Air Act (42 U.S.C. 7521) when the vehicle is 
manufactured and emitting an air pollutant in an amount 
significantly below one of those standards.
  (b) Authority To Exempt and Procedures.--(1) The Secretary of 
Transportation may exempt, on a temporary basis, motor vehicles 
from a motor vehicle safety standard prescribed under this 
chapter or passenger motor vehicles from a bumper standard 
prescribed under chapter 325 of this title, on terms the 
Secretary considers appropriate. An exemption may be renewed. A 
renewal may be granted only on reapplication and must conform 
to the requirements of this subsection.
  (2) The Secretary may begin a proceeding under this 
subsection when a manufacturer applies for an exemption or a 
renewal of an exemption. The Secretary shall publish notice of 
the application and provide an opportunity to comment. An 
application for an exemption or for a renewal of an exemption 
shall be filed at a time and in the way, and contain 
information, this section and the Secretary require.
  (3) The Secretary may act under this subsection on finding 
that--
          (A) an exemption is consistent with the public 
        interest and this chapter or chapter 325 of this title 
        (as applicable); and
          (B)(i) compliance with the standard would cause 
        substantial economic hardship to a manufacturer that 
        has tried to comply with the standard in good faith;
          (ii) the exemption would make easier the development 
        or field evaluation of a new motor vehicle safety 
        feature providing a safety level at least equal to the 
        safety level of the standard;
          (iii) the exemption would make the development or 
        field evaluation of a low-emission motor vehicle easier 
        and would not unreasonably lower the safety level of 
        that vehicle[; or];
          (iv) compliance with the standard would prevent the 
        manufacturer from selling a motor vehicle with an 
        overall safety level at least equal to the overall 
        safety level of nonexempt vehicles[.]; or
          (v) the exemption would make easier the development 
        or field evaluation of--
                  (I) a feature of a highly automated vehicle 
                providing a safety level at least equal to the 
                safety level of the standard for which 
                exemption is sought; or
                  (II) a highly automated vehicle providing an 
                overall safety level at least equal to the 
                overall safety level of nonexempt vehicles.
  (c) Contents of Applications.--A manufacturer applying for an 
exemption under subsection (b) of this section shall include 
the following information in the application:
          (1) if the application is made under subsection 
        (b)(3)(B)(i) of this section, a complete financial 
        statement describing the economic hardship and a 
        complete description of the manufacturer's good faith 
        effort to comply with each motor vehicle safety 
        standard prescribed under this chapter, or a bumper 
        standard prescribed under chapter 325 of this title, 
        from which the manufacturer is requesting an exemption.
          (2) if the application is made under subsection 
        (b)(3)(B)(ii) of this section, a record of the 
        research, development, and testing establishing the 
        innovative nature of the safety feature and a detailed 
        analysis establishing that the safety level of the 
        feature at least equals the safety level of the 
        standard.
          (3) if the application is made under subsection 
        (b)(3)(B)(iii) of this section, a record of the 
        research, development, and testing establishing that 
        the motor vehicle is a low-emission motor vehicle and 
        that the safety level of the vehicle is not lowered 
        unreasonably by exemption from the standard.
          (4) if the application is made under subsection 
        (b)(3)(B)(iv) of this section, a detailed analysis 
        showing how the vehicle provides an overall safety 
        level at least equal to the overall safety level of 
        nonexempt vehicles.
          (5) if the application is made under subsection 
        (b)(3)(B)(v) of this section--
                  (A) such development, testing, and other data 
                necessary to demonstrate that the motor vehicle 
                is a highly automated vehicle; and
                  (B) a detailed analysis that includes 
                supporting test data, including both on-road 
                and validation and testing data showing (as 
                applicable) that--
                          (i) the safety level of the feature 
                        at least equals the safety level of the 
                        standard for which exemption is sought; 
                        or
                          (ii) the vehicle provides an overall 
                        safety level at least equal to the 
                        overall safety level of nonexempt 
                        vehicles.
  (d) Eligibility.--[A manufacturer is eligible for an 
exemption under subsection (b)(3)(B)(i) of this section 
(including an exemption under subsection (b)(3)(B)(i) relating 
to a bumper standard referred to in subsection (b)(1)) only if 
the Secretary determines that the manufacturer's total motor 
vehicle production in the most recent year of production is not 
more than 10,000. A manufacturer is eligible for an exemption 
under subsection (b)(3)(B)(ii), (iii), or (iv) of this section 
only if the Secretary determines the exemption is for not more 
than 2,500 vehicles to be sold in the United States in any 12-
month period.]
          (1) Eligibility under subsection (b)(3)(b)(i)._A 
        manufacturer is eligible for an exemption under 
        subsection (b)(3)(B)(i) of this section (including an 
        exemption under subsection (b)(3)(B)(i) relating to a 
        bumper standard referred to in subsection (b)(1)) only 
        if the Secretary determines that the manufacturer's 
        total motor vehicle production in the most recent year 
        of production is not more than 10,000. 
          (2) Eligibility under subsection (b)(3)(b)(iii)._A 
        manufacturer is eligible for an exemption under 
        subsection (b)(3)(B)(iii) of this section only if the 
        Secretary determines the exemption is for not more than 
        2,500 vehicles to be sold in the United States in any 
        12-month period. 
          (3) Eligibility under subsection (b)(3)(b)(ii), (iv), 
        or (v)._A manufacturer is eligible for an exemption 
        under subsection (b)(3)(B)(ii), (iv), or (v) of this 
        section only if the Secretary determines the exemption 
        is for not more than 100,000 vehicles per manufacturer 
        to be sold, leased, or otherwise introduced into 
        commerce in the United States in any 12-month period. 
          (4) Limitation on number of vehicles exempted._All 
        exemptions granted to a manufacturer under subsections 
        (b)(3)(B)(i) through (v) shall not exceed a total of 
        (i) 25,000 vehicles manufactured within the first 12-
        month period, (ii) 50,000 vehicles manufactured within 
        the second 12-month period, (iii) 100,000 vehicles 
        manufactured within the third 12-month period, and, 
        (iv) 100,000 vehicles manufactured within the fourth 
        12-month period. Any renewals under subsections 
        (b)(3)(B)(i) through (v) shall not exceed a total of 
        100,000 vehicles manufactured within a 12-month period. 

  (e) Maximum Period.--[An exemption or renewal under 
subsection (b)(3)(B)(i) of this section may be granted for not 
more than 3 years. An exemption or renewal under subsection 
(b)(3)(B)(ii), (iii), or (iv) of this section may be granted 
for not more than 2 years.]
          (1) Exemption under subsection (b)(3)(b)(i)._An 
        exemption or renewal under subsection (b)(3)(B)(i) of 
        this section may be granted for not more than 3 years. 
          (2) Exemption under subsection (b)(3)(b)(iii)._An 
        exemption or renewal under subsection (b)(3)(B)(iii) 
        this section may be granted for not more than 2 years. 
          (3) Exemption under subsection (b)(3)(b)(ii), (iv), 
        or (v)._An exemption or renewal under subsection 
        (b)(3)(B)(ii), (iv), or (v) of this section may be 
        granted for not more than 4 years. 
  (f) Disclosure.--The Secretary may make public, by the 10th 
day after an application is filed, information contained in the 
application or relevant to the application unless the 
information concerns or is related to a trade secret or other 
confidential information not relevant to the application.
  (g) Notice of Decision.--The Secretary shall publish in the 
Federal Register a notice of each decision granting an 
exemption under this section and the reasons for granting it.
  (h) Permanent Label Requirement.--The Secretary shall require 
a permanent label to be fixed to a motor vehicle granted an 
exemption under this section. The label shall either name or 
describe each motor vehicle safety standard prescribed under 
this chapter or bumper standard prescribed under chapter 325 of 
this title from which the vehicle is exempt. The Secretary may 
require that written notice of an exemption be delivered by 
appropriate means to the dealer and the first purchaser of the 
vehicle other than for resale.
  (i) Limitation on Certain Exemptions.--No exemption from 
crashworthiness standards of motor vehicle safety standards 
shall be granted under subsection (b)(3)(B)(v) until the 
Secretary issues the safety assessment certification rule 
pursuant to section 30129(a) and the rulemaking and safety 
priority plan pursuant to section 30129(b) and one year has 
passed from the date by which the Secretary has issued both 
such rule and such plan. This subsection shall not apply to 
exemptions from occupant protection standards if the exemption 
is for a vehicle that will not carry its operator or 
passengers. This subsection shall not apply to exemptions from 
crashworthiness standards if the exemption sought is for a 
standard addressing the steering control system and it is for a 
vehicle that--
          (1) will not have a steering control system;
          (2) provides impact protection to an occupant in the 
        front left seat at a level at least equal to the level 
        provided in nonexempt vehicles; and
          (3) provides a safety level at least equal to the 
        safety level of the standard for which the exemption is 
        sought.
  (j) Reporting Requirement.--A manufacturer granted an 
exemption under subsection (b)(3)(B)(ii), (iv), or (v), shall 
provide information about all crashes of which it has actual 
knowledge involving such exempted vehicles, regardless of 
whether a claim is submitted to the manufacturer, in accordance 
with part 579 of title 49, Code of Federal Regulations.
  (k) Process and Analysis.--
          (1) In general.--Not later than 180 days after the 
        date of enactment of this subsection, the Secretary of 
        Transportation shall publish in the Federal Register a 
        notice that details the process and analysis used for 
        the consideration of exemption or renewal applications 
        under subsection (b)(3)(B)(v).
          (2) Periodic review and updating.--The notice 
        required by paragraph (1) shall be reviewed every 5 
        years and updated if the Secretary considers it 
        necessary.
  (l) Exemption Database.--
          (1) In general.--The Secretary shall establish a 
        publicly available and searchable electronic database 
        of each motor vehicle for which an exemption from motor 
        vehicle safety standards prescribed under this chapter 
        or a bumper standard prescribed under chapter 325 has 
        been granted.
          (2) Vehicle identification number.--The database 
        established under paragraph (1) shall be searchable by 
        Vehicle Identification Number and shall include no 
        information identifying the vehicle owner.

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Sec. 30129. Updated or new motor vehicle safety standards for highly 
                    automated vehicles

  (a) Safety Assessment Certification.--
          (1) Final rule.--Not later than 24 months after the 
        date of the enactment of this section, the Secretary of 
        Transportation shall issue a final rule requiring the 
        submission of safety assessment certifications 
        regarding how safety is being addressed by each entity 
        developing a highly automated vehicle or an automated 
        driving system. Such rule shall include--
                  (A) a specification of which entities are 
                required to submit such certifications;
                  (B) a clear description of the relevant test 
                results, data, and other contents required to 
                be submitted by such entity, in order to 
                demonstrate that such entity's vehicles are 
                likely to maintain safety, and function as 
                intended and contain fail safe features, to be 
                included in such certifications; and
                  (C) a specification of the circumstances 
                under which such certifications are required to 
                be updated or resubmitted.
          (2) Interim requirement.--Until the final rule issued 
        under paragraph (1) takes effect, safety assessment 
        letters shall be submitted to the National Highway 
        Traffic Safety Administration as contemplated by the 
        Federal Automated Vehicles Policy issued in September 
        2016, or any successor guidance issued on highly 
        automated vehicles requiring a safety assessment 
        letter.
          (3) Periodic review and updating.--Not later than 5 
        years after the date on which the final rule is issued 
        under paragraph (1), and not less frequently than every 
        5 years thereafter, the Secretary shall--
                  (A) review such rule; and
                  (B) update such rule if the Secretary 
                considers it necessary.
          (4) Rules of construction.--
                  (A) No conditions on deployment.--Nothing in 
                this subsection may be construed to limit or 
                affect the Secretary's authority under any 
                other provision of law. The Secretary may not 
                condition deployment or testing of highly 
                automated vehicles on review of safety 
                assessment certifications.
                  (B) No new authorities.--No new authorities 
                are granted to the Secretary under this section 
                other than the promulgation of the rule 
                pursuant to paragraph (1).
          (5) Review and research.--To accommodate the 
        development and deployment of highly automated vehicles 
        and to ensure the safety and security of highly 
        automated vehicles and motor vehicles and others that 
        will share the roads with highly automated vehicles, 
        not later than 180 days after the date of the enactment 
        of this section, the Secretary shall--
                  (A) initiate or continue a review of the 
                Federal motor vehicle safety standards in 
                effect on such date of enactment; and
                  (B) initiate or continue research regarding 
                new Federal motor vehicle safety standards.
  (b) Rulemaking and Safety Priority Plan.--
          (1) In general.--Not later than 1 year after the date 
        of enactment of this section, the Secretary shall make 
        available to the public and submit to the Committee on 
        Energy and Commerce of the House of Representatives and 
        the Committee on Commerce, Science, and Transportation 
        of the Senate a rulemaking and safety priority plan, as 
        necessary to accommodate the development and deployment 
        of highly automated vehicles and to ensure the safety 
        and security of highly automated vehicles and motor 
        vehicles and others that will share the roads with 
        highly automated vehicles, to--
                  (A) update the motor vehicle safety standards 
                in effect on such date of enactment;
                  (B) issue new motor vehicle safety standards; 
                and
                  (C) consider how objective ranges in 
                performance standards could be used to test 
                motor vehicle safety standards, which safety 
                standards would be appropriate for such 
                testing, and whether additional authority would 
                facilitate such testing.
          (2) Inclusion of priorities.--
                  (A) Priorities.--The plan required by 
                paragraph (1) shall detail the overall 
                priorities of the National Highway Traffic 
                Safety Administration for the 5 years following 
                the issuance of the plan, including both 
                priorities with respect to highly automated 
                vehicles and priorities with respect to other 
                safety initiatives of the Administration, in 
                order to meet the Nation's motor vehicle safety 
                challenges.
                  (B) Identification of elements that may 
                require standards.--For highly automated 
                vehicles, the National Highway Traffic Safety 
                Administration should identify elements that 
                may require performance standards including 
                human machine interface, sensors, and 
                actuators, and consider process and procedure 
                standards for software and cybersecurity as 
                necessary.
          (3) Periodic updating.--The plan required by 
        paragraph (1) shall be updated every 2 years, or more 
        frequently if the Secretary considers it necessary.
          (4) Rulemaking proceedings on updated or new motor 
        vehicle safety standards.--
                  (A) In general.--Not later than 18 months 
                after the date of enactment of this section, 
                the Secretary shall initiate the first 
                rulemaking proceeding in accordance with the 
                rulemaking and safety priority plan required by 
                paragraph (1).
                  (B) Prioritization of subsequent 
                proceedings.--The Secretary shall continue 
                initiating rulemaking proceedings in accordance 
                with such plan. The Secretary may change at any 
                time those priorities to address matters the 
                Secretary considers of greater priority. If the 
                Secretary makes such a change, the Secretary 
                shall complete an interim update of the 
                priority plan, make such update available to 
                the public, and submit such update to the 
                Committee on Energy and Commerce of the House 
                of Representatives and the Committee on 
                Commerce, Science, and Transportation of the 
                Senate.

Sec. 30130. Cybersecurity of automated driving systems

  (a) Cybersecurity Plan.--A manufacturer may not sell, offer 
for sale, introduce or deliver for introduction into commerce, 
or import into the United States, any highly automated vehicle, 
vehicle that performs partial driving automation, or automated 
driving system unless such manufacturer has developed a 
cybersecurity plan that includes the following:
          (1) A written cybersecurity policy with respect to 
        the practices of the manufacturer for detecting and 
        responding to cyber attacks, unauthorized intrusions, 
        and false and spurious messages or vehicle control 
        commands. This policy shall include--
                  (A) a process for identifying, assessing, and 
                mitigating reasonably foreseeable 
                vulnerabilities from cyber attacks or 
                unauthorized intrusions, including false and 
                spurious messages and malicious vehicle control 
                commands; and
                  (B) a process for taking preventive and 
                corrective action to mitigate against 
                vulnerabilities in a highly automated vehicle 
                or a vehicle that performs partial driving 
                automation, including incident response plans, 
                intrusion detection and prevention systems that 
                safeguard key controls, systems, and procedures 
                through testing or monitoring, and updates to 
                such process based on changed circumstances.
          (2) The identification of an officer or other 
        individual of the manufacturer as the point of contact 
        with responsibility for the management of 
        cybersecurity.
          (3) A process for limiting access to automated 
        driving systems.
          (4) A process for employee training and supervision 
        for implementation and maintenance of the policies and 
        procedures required by this section, including controls 
        on employee access to automated driving systems.
  (b) Effective Date.--This section shall take effect 180 days 
after the date of enactment of this section.

Sec. 30131. Rear seat occupant alert system

  (a) Rulemaking Required.--Not later than 2 years after the 
date of enactment of this section, the Secretary shall issue a 
final rule requiring all new passenger motor vehicles weighing 
less than 10,000 pounds gross vehicle weight to be equipped 
with an alarm system to alert the operator to check rear 
designated seating positions after the vehicle motor or engine 
is deactivated by the operator.
  (b) Phase-in.--The rule issued pursuant to subsection (a) 
shall require full compliance with the rule beginning on 
September 1st of the calendar year that begins 2 years after 
the date on which the final rule is issued.
  (c) Definitions.--For purposes of this section--
          (1) the term ``passenger motor vehicle'' has the 
        meaning given that term in section 32101; and
          (2) the term ``rear designated seating position'' 
        means any designated seating position that is rearward 
        of the front seat.

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SUBCHAPTER IV--ENFORCEMENT AND ADMINISTRATIVE

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Sec. 30165. Civil penalty

  (a) Civil Penalties.--
          (1) In general.--A person that violates any of 
        section 30112, 30115, 30117 through 30122, 30123(a), 
        30125(c), 30127, 30130, 30141 through 30147, or 31137, 
        or a regulation prescribed thereunder, is liable to the 
        United States Government for a civil penalty of not 
        more than $5,000 for each violation. A separate 
        violation occurs for each motor vehicle or item of 
        motor vehicle equipment and for each failure or refusal 
        to allow or perform an act required by any of those 
        sections. The maximum penalty under this subsection for 
        a related series of violations is $35,000,000.
          (2) School buses.--
                  (A) In general.--Notwithstanding paragraph 
                (1), the maximum amount of a civil penalty 
                under this paragraph shall be $10,000 in the 
                case of--
                          (i) the manufacture, sale, offer for 
                        sale, introduction or delivery for 
                        introduction into interstate commerce, 
                        or importation of a school bus or 
                        school bus equipment (as those terms 
                        are defined in section 30125(a) of this 
                        title) in violation of section 
                        30112(a)(1) of this title; or
                          (ii) a violation of section 
                        30112(a)(2) of this title.
                  (B) Related series of violations.--A separate 
                violation occurs for each motor vehicle or item 
                of motor vehicle equipment and for each failure 
                or refusal to allow or perform an act required 
                by that section. The maximum penalty under this 
                paragraph for a related series of violations is 
                $15,000,000.
          (3) Section 30166.--Except as provided in paragraph 
        (4), a person who violates section 30166 or a 
        regulation prescribed under that section is liable to 
        the United States Government for a civil penalty for 
        failing or refusing to allow or perform an act required 
        under that section or regulation. The maximum penalty 
        under this paragraph is $5,000 per violation per day. 
        The maximum penalty under this paragraph for a related 
        series of daily violations is $35,000,000.
          (4) False or misleading reports.--A person who 
        knowingly and willfully submits materially false or 
        misleading information to the Secretary, after 
        certifying the same information as accurate under the 
        certification process established pursuant to section 
        30166(o), shall be subject to a civil penalty of not 
        more than $5,000 per day. The maximum penalty under 
        this paragraph for a related series of daily violations 
        is $1,000,000.
  (b) Compromise and Setoff.--(1) The Secretary of 
Transportation may compromise the amount of a civil penalty 
imposed under this section.
  (2) The Government may deduct the amount of a civil penalty 
imposed or compromised under this section from amounts it owes 
the person liable for the penalty.
  (c) Relevant Factors in Determining Amount of Penalty or 
Compromise.--In determining the amount of a civil penalty or 
compromise under this section, the Secretary of Transportation 
shall consider the nature, circumstances, extent, and gravity 
of the violation. Such determination shall include, as 
appropriate--
          (1) the nature of the defect or noncompliance;
          (2) knowledge by the person charged of its 
        obligations under this chapter;
          (3) the severity of the risk of injury;
          (4) the occurrence or absence of injury;
          (5) the number of motor vehicles or items of motor 
        vehicle equipment distributed with the defect or 
        noncompliance;
          (6) actions taken by the person charged to identify, 
        investigate, or mitigate the condition;
          (7) the appropriateness of such penalty in relation 
        to the size of the business of the person charged, 
        including the potential for undue adverse economic 
        impacts;
          (8) whether the person has been assessed civil 
        penalties under this section during the most recent 5 
        years; and
          (9) other appropriate factors.
  (d) Subpenas for Witnesses.--In a civil action brought under 
this section, a subpena for a witness may be served in any 
judicial district.

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