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Furthermore, there are a number of regulatory and policy matters that require the
expertise of multiple agencies under the USDOT umbrella to find a resolution.
Attached, please find an addendum outlining those regulatory and policy matters.

The JTA strongly believes that the U2C is a project that not only advances the
integration of technology and automation into our industry, but advances key
priorities in the fields of safety, mobility, workforce development, and more. We
welcome the opportunity to have JTA's u2c program be the leading project to test
and create the regulatory framework that advances autonomous shuttle adaptation
across our nation.

I look forward to welcoming you to Jacksonville. lf you have any questions or requests,
you may reach me at9O4-632-5500 or nfordlô m.

Sincerely,

¡
Nathaniel P. Ford Sr
Chief Executive Officer å

Cc Hon. Nuria Fernandez, Administrator, Federal Tra nsit Administration

Hon. Veronica Vanterpool, Deputy Administrator, Federal Transit
Administration
Dr. Yvette Taylor, Regional Administrator, Federal Transit Administration

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@ffisEïg
Autonomous Vehicle Operating on Public Roadways in the US
Submitted fo: Federal Transit Administration
Sub m itted by: Jacksonvi lle Transportation Authority
February 6,2023

The Jacksonville Transportation Authority (JTA) is poised to start service of the first phase of our Ultimate
Urban Circulator (U2C) program, known as the Bay Street lnnovation Corridor (BSIC), in 2025. This white
paper identifies some of the existing challenges, specifically policies and regulations that need to be
addressed for autonomous vehícle (AV) projects like these to move from the demonstration phase to full
revenue service deployments.

These challenges are not unique to our project but are issues all agencies engaged in this work will have
to address.
The challenges identified in our program are as follows:

a NHTSA Sofetv Stondords: The National Highway Traffic Safety Administration (NHTSA) requires that
all vehicles operating on US roadways comply with Federal Motor Vehicle Safety Standards (FMVSS).
Currently, purpose-built autonomous shuttles do not meet all of the US compliance requirements due
to non-applicable standards (e.g., the requirement to have a steering wheel) which do not apply to a
driverless vehicle. Autonomous vehicles (AVs) will meet all other FMVSS and operate with an equal
or better level of safety than a comparable driver-operated vehicle. lt is also important to note that
the JTA program will operate within controlled parameters: speed and a dedicated route corridor.
Today, NHTSA must review an application requesting an exemption from the non-applicable vehicle
safety and bumper standards and issue the exemption for AV manufacturers to deploy AVs on public
roadways. The JTA has been actively engaged with NHTSA and our original equþment manufacturer
(OEM) partners in assessing the safety case approach for this lengthy process. The exemption
-
NHTSA Part 555 Waiver - is a yearlong process and must be led by the manufacturers. The JTA and its
contractor, Beep lnc., are in dialogue with several manufacturers to apply for the formal exemption.
The timing and process of an approved exemption will put the JTA beyond the time to both acquire
AVs of AVs and begin revenue service by March 2025.

o Federal Transit Administration (FTA) support is requested in prioritizing the review of the
NHTSA Part 555 exempt¡on and other processes under development. lt has been shared by
NHTSA that there is another, more expedited process to achieve our objectives but the details
have not yet been made available. Specifically, we would ask for the FTA to provide proactive
input and issue wrítten correspondence to NHTSA to ensure that the potential new process
that NHTSA is developing is in line with the FTA funding rules:
¡ AVs are not classified as only research or "test" vehicles; and
' AbilítY for public transportation agencies to charge fares and generate revenue
a Buv Americo: The JTA U2C program and our autonomous vehicle testing which has been underway
for several years has resulted in multiple tier-L European automotive suppliers committing to build
new AVs in the US with full Buy America compliance. This commitment will create new permanent
jobs, promote US production and innovation in this important area of technology. This transition will
take multiple years to establish the supply chain and manufacturing capacity in the US but it is now
underway. This is projected to be completed in 2026. As with our other transit vehicle purchases, we
 are subject to the FTA requirements for Buy America. However, no purpose-built autonomous
shuttles are available in the U.S. and are solely manufactured in other countries. This 2026 timeframe
does not align with federally funded projects, such as JTA's BSIC, that have a deployment date prior
to2O26.

o Recent actions by the U.S. Department of Transportation (USDOT) could pave the way for
consideration of a temporary waiver until full Buy America compliance is met during this
transition period from 2025 to 2026. For example, the recent announcement from FTA
allowing a time-limited partial waiver for the Buy America requirement of non-ADA accessible
vans or minivans used in federally funded vanpool programs; as well as the discussion around
US DOT proposing to establish a temporary public interest waiver for projects funded under
the SMART Grants Program that would be applicable to AVs, are encouraging signs that we
can find a solution.

o Additional ideas that may be more timely and that we would like to discuss further with FTA
include:
' Not using any federal funds for the initial AV purchase for the start of revenue service
in 2025; and/or
r Securing a short-term LL-month lease from the manufacturers for the first AV
shuttles that will be replaced upon achieving full Buy America compliance in 2026.

o We request FTA Office of Chief Counsel provide guidance on alternative means to achieve
compliance with the applicable Buy America provisions, specifically considering the following:
. Do exceptions exist for bridging the time required to achieve Buy America
compliance given this is a new product and technology being introduced to
the US?
. lf so, then the JTA and their BSIC partners propose to u¡e the first two years
of revenue service (2025-2027) to enter a short-term operating lease for the
AV shuttles to serve as a "bridge" period. This will allow the OEMs to
achieve full Buy America compliance for the purpose-built AV shuttle that
could be introduced to the project after this time.

a Useful Life: FTA has established the "useful life" for all rolling stock to be used in revenue service to
ensure the federal taxpayers receive maximum benefit from the asset. However, there is no "useful
life" standard for an AV and current standards for public transport vehicles are not appropriate for
the AV since the primary value in the AV is the "technology" stack, such as LIDAR, sensors, and other
operating systems that enable it to be an AV. Congress established an exception for the battery of an
electric vehicle recognizing that the battery would not have the same useful life as the bus in which
the battery is placed. Similarly, the technological evolution of AVs is such that the systems that enable
the vehicle to be autonomous will be evolving over tíme through the operating experience of each
vehicle. Thus, we would like further dialogue on pursuing paths that would exclude the AV from the
application of existing "useful life" standards for the purposes of advancing technology projects.
o We request that FTA establishes and provides an AV useful life target to replace the current
standards, which are not applicable to AVs and associated technologies. ln particular, we
request the FTA to specifically consider the following:
Leverage existing useful life guidance on paratransit models of similar size
and Gross Vehicle Weight Rating (GVWR);

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 I consider precedents published on the treatment of technology components
of vehicles towards establishing new Useful life guidance;
Use industry standards or manufacturing specifications to arrive at a
reasonable useful life target for AVs; and
Review the BUILD Grant requirements to see if a useful life target is still
appliCable for the grant award

a AV Stack Testinq & Approvol: FTA has recently raised questions on how the ,,AV Technology Stack,, or
the virtual drive system of the AV shuttles will be tested and approved. The FTA is aware that no such
testing or approval process exists. This could potentially require the development of standards for the
software and the AV Technology Stack. This is likely to remain a state or local issue, which would allow
each state or jurisdiction to establish its own governance. However, the establishment of universal
standards, testing, and other requirements for FTA to administer and govern their federally funded
projects is necessary.

To advance this technology, importantly, to show collaboration and unity between the regulators and
the industry, it is the best case that we convene as an industry to discuss these items under the theme
"Operating Autonomous Vehicles in the Public Space." Through this AV agency cohort, we can share
best practices, challenges, and findings, and develop not only recommendations to the administration
but also agreed-upon advocacy initiatives to see these become a reality. States could be more
prudent with its discretionary funds and support the public agencies furthest along who can in turn,
share the outcomes more expeditiously with regulators and the industry.

Our Proposal: The JTA strongly feels that with engagement and partnership with FTA, NHTSA, and the
manufacturers these challenges can be overcome. The U2C program is poised transform public
transportation as it will set the standards for AV shuttle deployment on public roadways in the US. As
such, we request US DOT, including FTA and NHTSA, to dedicate resources to deüelop the standards for
FMVSS, Buy America, Useful Life, and AV Technology Stack Testing and Approval to allow the U2C phase j-
project to start revenue service in 2025.

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