All eyes can to be in California’s robotaxi market, but Texas is shaping up to be the next hot testing ground for the technology — and regulatory battles that could follow.
The Lone Star State has hosted tests of autonomous vehicles, particularly trucks, for years. But Texas, a state with negligible AV regulation, is poised to attract a larger share of industry giants and startups as regulatory pressure mounts in California.
The stakes are higher than the pile of money Texas stands to gain if more companies set up shop in the state. Texas not only lacks strong AV regulation, but state law specifically prohibits cities from regulating the technology that will be tested and deployed on its roads. How the rollout of robotaxi plays out in Texas could inform how other states approach the cutting-edge technology.
Governments could either side with increased skepticism or increased opportunism, Bryant Walker Smith, an associate professor of law at the University of South Carolina, said in a recent interview.
“On the one hand, you could have state or local officials saying we’re really concerned about a company or a technology or the entire industry,” said Smith, who specializes in automated driving, policy and law. we have growing data points that warrant our concern and we need to curb what they are doing in our state.”
Or, Texas may produce some politicians or governments who see the Cruz drama in California as an opportunity.
“They may say, mistakes will be made. Human driving is dangerous and you show that your system as a whole is safer than humans, so we want you in our situation. Don’t worry about all that trouble you’re having in California. Come here and we’ll treat you right,’” Smith explained.
As fleets expand and issues undoubtedly arise, how will Texas walk the fine line between encouraging innovation and protecting its roads?
Cruise in reverse
Cruise, GM’s self-driving car subsidiary, has halted operations across the country and recalled its vehicles after its licenses were suspended in California following an incident that left a pedestrian who had been hit by a human-powered vehicle. stuck down. and was whisked away by a Cruise robotaxi.
GM pumped billions of dollars into Cruise and issued it a $5 billion line of credit. It’s unlikely that GM will completely scrap its efforts despite Cruise’s current problems and significant cash burn. Cruise has spent $8 billion since 2017.
When Cruise resumes operations, she may not be able—or willing—to return to California. That leaves a few other markets, including Arizona and Texas. Cruise had begun limited commercial service in Austin and Houston and began testing in Dallas.
Cruise’s main competition, Waymo, is also eyeing an Austin expansion. The company said it will begin its first operations there in the fall, with a public shuttle service opening at a later date.
Cruise isn’t the first company to leave California for the greener regulatory pastures of Texas. Elon Musk moved Tesla’s headquarters to Austin, Texas after a standoff with California officials during the COVID-19 pandemic over the forced shutdown of the company’s Fremont factory.
Austin complains
Cruise had about 250 vehicles in Austin and operated on limited routes during the evening hours before ceasing driverless operations across its fleet on Oct. 26. counterparts in San Francisco.
They ranged from the nitpicky, like a resident complaining about her once-quiet street now being subjected to countless cruise rounds, to the well-known complaint about a robotaxi blocking and impeding traffic, and the downright dangerous report of a pedestrian who nearly hit her while crossing the road.
Austin residents and agencies have expressed concern that expanding the fleet would only multiply those problems.
Ride-hailing replay
Austin has been at a similar crossroads before.
Uber and Lyft launched in Austin around 2014. Two years later, the city implemented its own ride-hailing laws requiring the companies to conduct background checks on drivers. Instead of complying, the two companies pulled out of Austin altogether and then ran to state lawmakers for help.
Before the Texas State Legislature began its 2017 session, Uber and Lyft began lobbying efforts in hopes of leaving the cities.
The two companies came up with “truckloads of money to buy some more favorable regulation” that prevented cities across the state from enacting municipal-level regulations, according to someone familiar with the matter. Lobbying records show that in 2016, Uber and Lyft collectively paid $2.3 million through 40 lobbyists to block cities from regulating their operations, according to the citizens’ group. Texans for Public Justice.
Governor Greg Abbott signed the bill into law HB 100which gave the state power to regulate riding-hail companies, provided that such companies paid an annual fee.
Uber and Lyft, both of which were pursuing robo-taxis at the time, also successfully helped influence lawmakers pass a similar bill during this legislative session which prohibited cities from regulating autonomous vehicles. The bill established minimum safety requirements for AVs to be deployed on public roads. It also sent a message to companies in California and elsewhere that Texas was open for business.
How can city officials resist
Barring a high-profile incident that catches the attention of Governor Abbott’s office, it’s unlikely the state will pursue autonomous vehicle regulation. This leaves cities with few options.
The next Texas legislative session is scheduled for January 2025. Austin City Council member Zo Qadri, who represents a district that covers much of the area where Cruise operated, told TechCrunch that his office is working to advance the debate at the state level. but he would be surprised if the Republican-controlled legislature made changes in 2025.
“AV technology has advanced much faster than some naysayers would have expected, but the fact is that it’s not ready for prime time yet, and using public roads as a testing ground to try to get there eventually is much less from the ideal,” he said. Qadri. “It’s deeply unfortunate to think that while we’ve tested real tools and technologies that work in cities around the world — transit, sidewalks, bike infrastructure, better land use — private companies are burning billions to try to reinvent the wheel.”
Texas cities have an ace up their sleeves that California cities don’t: the ability to ruthlessly and discreetly ticket robotaxi.
In California, a person must be present in a vehicle to receive a ticket. However, in Texas, when an AV is involved, “the owner of the automated driving system is deemed to be the operator of the automated motor vehicle solely for the purpose of evaluating compliance with applicable traffic or motor vehicle laws…the automated driving system is deemed to is a license to operate the vehicle.”
That means Cruise — or Waymo or any other robotaxi company — is responsible for any traffic violations, collisions or general misbehavior of its vehicles.
“You could have a bunch of local police following vehicles around, ticketing them for reckless driving, maintenance violations,” Smith said. “The road traffic code is vague and full of opportunities for selective enforcement.”
In Texas, if a human driver accumulates too many points on their driving record within a certain time frame, their license can be suspended. The Texas Department of Public Safety may be forced to issue a similar notice against robotaxis if they create too much of a nuisance on public city streets.
