California Code of Regulations, Title 13, Division 1, Chapter 1, Article 3.7 – Testing of Autonomous Vehicles; and California Public Utilities Commission Autonomous Vehicle Passenger Service Programs

Overview

The regulatory landscape for autonomous vehicles (AVs) in California is characterized by a dual-agency approach, primarily involving the California Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC). This comprehensive framework is designed to ensure public safety, foster innovation, and establish clear guidelines for the testing and deployment of AV technology on public roads. The DMV, through its regulations codified in Article 3.7 of the California Code of Regulations, Title 13, Division 1, Chapter 1, is responsible for overseeing the testing phase of autonomous vehicles. This includes issuing permits to manufacturers for both AVs operating with a safety driver and those conducting driverless testing. The DMV's regulations mandate stringent requirements for vehicle design, operational capabilities, financial responsibility, and reporting protocols, ensuring that manufacturers demonstrate a high level of safety readiness before operating on public roadways. The initial driverless testing regulations were approved in February 2018 and became effective in April 2018, marking a significant milestone in California's approach to AV regulation.

Complementing the DMV's testing oversight, the CPUC regulates the commercial deployment of autonomous vehicles for passenger transportation services within the state. The CPUC's role focuses on ensuring that AV passenger services are safe, accessible, and equitable for the public. This includes authorizing programs for both drivered and driverless AV passenger services and setting rules for fare collection. The CPUC's regulatory authority extends to aspects such as passenger safety plans, communication links between passengers and remote operators, and data reporting specific to passenger service operations. While the DMV primarily focuses on the technical safety and operational aspects of the vehicles themselves during testing, the CPUC addresses the broader public service implications once AVs are deployed for commercial use. This two-pronged regulatory strategy aims to provide a robust and adaptable framework for the safe integration of autonomous vehicle technology into California's transportation ecosystem, continuously adapting to technological advancements and public needs.

Definitions

Key terms are defined within California's autonomous vehicle regulations to ensure clarity and consistent application across the various programs. An “autonomous vehicle” (AV) is generally understood as any vehicle equipped with technology, a combination of hardware and software, that has the capability to operate the vehicle without direct human control. This definition encompasses vehicles capable of performing the dynamic driving task, with or without a natural person actively supervising the autonomous technology’s performance. The term “autonomous mode” refers to the status of vehicle operation when the autonomous technology is engaged and performing the dynamic driving task. The DMV distinguishes between different types of testing permits: the “Autonomous Vehicle Tester (AVT) Program” generally refers to testing with a safety driver present in the vehicle, capable of taking immediate manual control. The “AVT Driverless Program” or “Manufacturer's Testing Permit – Driverless Vehicles” specifically allows for the testing of autonomous vehicles without a human safety driver behind the wheel, often relying on remote operators.

A “remote operator” is defined as a natural person not seated in the driver's seat of the autonomous vehicle but capable of monitoring and, if necessary, taking control of the vehicle through a communications link. This role is critical for driverless operations, requiring specific training and certification. “Deployment” refers to the operation of autonomous vehicles on public roads for purposes other than testing, typically involving commercial services such as passenger transportation. The CPUC specifically defines “Autonomous Vehicle Passenger Service Programs” to encompass the authorized provision of pre-arranged transportation in autonomous vehicles, with or without a safety driver, for which monetary compensation may or may not be charged depending on the program phase. These precise definitions are fundamental to delineating the responsibilities of manufacturers and operators, the scope of permits, and the application of safety and operational standards across California’s regulatory framework for autonomous vehicles.

Governance and Institutional Framework

The governance of autonomous vehicles in California is bifurcated between the California Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC), each exercising distinct but complementary authority. The DMV is the primary agency responsible for regulating the testing of autonomous vehicles on public roads. Its authority stems from California Vehicle Code Section 38750, which mandates the establishment of regulations for AV operation. The DMV's Autonomous Vehicles Branch administers the Autonomous Vehicle Tester (AVT) Program, which includes issuing permits for testing with a safety driver and the more advanced driverless testing permits. This involves setting requirements for manufacturer applications, vehicle identification, evidence of financial responsibility (typically $5 million), and detailed reporting of collisions and system disengagements. The DMV's framework focuses on the technical and operational safety of the AV technology itself, ensuring that vehicles meet rigorous standards before and during their testing phases.

The CPUC, on the other hand, holds regulatory authority over the deployment of autonomous vehicles for passenger transportation services. Its jurisdiction is derived from its constitutional mandate to regulate public utilities and transportation across the state. The CPUC establishes policies, processes, and rules for AV passenger service programs, including pilot programs and deployment programs that allow for fare collection. Companies seeking to offer paid AV rides must obtain appropriate permits from the CPUC, which often requires them to first hold the corresponding DMV testing permit. The CPUC's oversight extends to passenger safety plans, accessibility considerations, data collection on service operations, and ensuring equitable access to AV services. While the DMV ensures the vehicle is safe to operate autonomously, the CPUC ensures that the service provided by these autonomous vehicles meets public interest, safety, and regulatory standards for transportation providers. This division of labor creates a comprehensive oversight structure, addressing both the technological integrity and the public service aspects of autonomous vehicle integration.

Key Focus Areas

The California autonomous vehicle regulatory framework, spearheaded by the DMV and CPUC, prioritizes several key areas to ensure the safe and responsible integration of AV technology. A paramount focus is safety and testing evaluation. The DMV mandates extensive testing under controlled conditions that simulate real-world operational design domains (ODDs) before public road testing is permitted. Manufacturers must demonstrate a structured safety case for vehicle hardware, software, and operations, including completing significant mileage thresholds (e.g., 50,000 miles for light-duty AVs). Requirements include equipping AVs with systems for driver engagement/disengagement, in-vehicle indicators for autonomous mode, and mechanisms to safely stop the vehicle if the AV system fails. Data recorders are also required to capture sensor data 30 seconds before a collision. For driverless testing, manufacturers must continuously monitor vehicle status and maintain a two-way communication link with remote operators who can take control in emergencies. This rigorous testing and evaluation protocol is fundamental to mitigating risks associated with emerging AV technology.

Another critical focus area is governance and oversight, ensuring clear lines of responsibility and accountability. The DMV issues various permits—for testing with a safety driver, driverless testing, and deployment—each with specific application and compliance requirements. Manufacturers must provide evidence of financial responsibility, typically a $5 million surety bond or insurance, to cover potential liabilities. For deployment of passenger services, the CPUC steps in, requiring separate permits and focusing on aspects like passenger safety plans, accessibility, and fare collection policies. Transparency and disclosure are also emphasized, with requirements for manufacturers to report collisions, dynamic driving task performance-relevant system failures, vehicle immobilizations, and annual disengagement reports. Furthermore, manufacturers must provide a “law enforcement interaction plan” to inform first responders on how to engage with AVs during incidents. These combined focus areas aim to create a robust regulatory environment that balances innovation with public protection, addressing both the technical and societal implications of autonomous vehicles.

Implementation Framework

The implementation framework for autonomous vehicles in California is structured around a multi-stage permitting process administered by the DMV and CPUC. For testing, manufacturers must first obtain a Manufacturer's Testing Permit from the DMV. This permit allows for the operation of AVs with a safety driver on public roads. To qualify, manufacturers must demonstrate financial responsibility of at least $5 million, provide details of their AV test vehicles, enroll their test drivers in the Employer Pull Notice (EPN) Program, and submit a comprehensive AV test driver training program outline. The application process involves submitting forms such as OL 311 and supporting documentation, with an annual fee. Once approved, permit holders are authorized to test on any public road within California, provided a human safety driver is present and capable of taking immediate manual control. This initial phase ensures that manufacturers have established foundational safety protocols and trained personnel.

For more advanced operations, the DMV offers a “Manufacturer's Testing Permit – Driverless Vehicles” (also known as the AVT Driverless Program), which was approved in February 2018 and became effective in April 2018. This permit allows AVs to operate on public roads without a human driver inside the vehicle, relying instead on remote operators. Additional requirements for driverless testing include submitting an application (OL 318), a detailed law enforcement interaction plan, a remote operator training program, and a certification that the manufacturer will continuously monitor the vehicle's status and communication link. Finally, for commercial deployment of AVs, particularly for passenger services, manufacturers must obtain permits from the CPUC. These “Autonomous Vehicle Passenger Service Programs” allow for the collection of fares and require applicants to submit passenger safety plans, among other requirements. The CPUC's deployment programs, initiated in November 2020, build upon the DMV's testing permits, creating a progressive framework from initial testing to full commercial operation.

Monitoring and Evaluation

Monitoring and evaluation are integral components of California's autonomous vehicle regulatory framework, designed to continuously assess the safety and performance of AV technology on public roads. The DMV mandates comprehensive reporting requirements for all permit holders. Manufacturers with testing permits, including those for driverless vehicles, are required to submit annual disengagement reports. These reports detail instances where the autonomous mode was disengaged, whether due to a system failure, the need for a safety driver to take control, or other reasons. This data provides crucial insights into the reliability and limitations of the autonomous technology in various real-world scenarios. Additionally, permit holders must report any collisions involving their autonomous vehicles on public roads within 10 days, providing detailed information about the incident. This includes reporting property damage, bodily injury, or death, which allows the DMV to track safety incidents and identify potential trends or concerns. The DMV also requires reporting of dynamic driving task performance-relevant system failures and vehicle immobilizations, further contributing to a comprehensive understanding of AV performance.

Beyond incident-specific reporting, the DMV collects data on vehicle miles traveled in autonomous mode, offering a quantitative measure of testing activity and exposure on public roads. This data, combined with disengagement and collision reports, enables the DMV to evaluate the overall safety record of AV manufacturers and inform future regulatory adjustments. The CPUC, in its role regulating autonomous vehicle passenger services, also emphasizes monitoring and evaluation, particularly concerning passenger safety, accessibility, and environmental impacts. While specific reporting requirements for CPUC-permitted services are continually evolving through ongoing rulemaking, the commission aims to collect data to inform policy decisions and ensure that AV deployment aligns with public interest goals. Both agencies utilize this collected data to inform their regulatory decisions, refine permit requirements, and ensure that the deployment of autonomous vehicles progresses safely and responsibly, with an emphasis on continuous improvement and adaptation to new technological developments.

Penalties, Liability, and Appeals

California's autonomous vehicle regulations include provisions for penalties, liability, and appeal processes to ensure compliance and address incidents. The DMV has the authority to refuse, restrict, suspend, or revoke an autonomous vehicle testing permit for various reasons. These include a manufacturer's failure to maintain the required financial responsibility (e.g., $5 million insurance or surety bond), violation of Vehicle Code Section 38750 or the associated Article 3.7 regulations, or operating driverless autonomous vehicles outside their specified operational design domain. If a permit is restricted, suspended, or revoked, the manufacturer has the right to demand a hearing to appeal the decision. This appeals process ensures due process and allows manufacturers to present their case against any enforcement actions taken by the DMV. The regulations are designed to hold manufacturers accountable for the safe operation of their autonomous vehicles during testing and deployment, with clear consequences for non-compliance.

Regarding liability, manufacturers are required to maintain substantial financial responsibility to cover potential damages or injuries resulting from the operation of their autonomous vehicles. This financial safeguard, typically a $5 million surety bond or insurance policy, is a critical component of the regulatory framework, ensuring that victims of AV-related incidents can receive compensation. While the regulations establish the requirement for financial responsibility, specific civil liability for accidents involving autonomous vehicles would generally fall under existing tort law principles, potentially involving product liability or negligence claims against the manufacturer or operator. The detailed data reporting requirements, such as collision reports and sensor data capture, are crucial for investigating incidents and determining fault. For CPUC-regulated passenger services, additional liability considerations may arise concerning the transportation of passengers, and the CPUC's passenger safety plans and insurance requirements for service providers would play a role in addressing these. The overarching goal is to establish a framework where accountability is clear, and mechanisms are in place to address safety breaches and provide recourse for affected parties.

Relationship to Other Instruments

The California autonomous vehicle regulatory framework operates within and complements a broader legal and policy landscape. The DMV's regulations, specifically Article 3.7 of the California Code of Regulations, Title 13, explicitly implement and interpret Division 16.6 (commencing with Section 38750) of the California Vehicle Code. This foundational Vehicle Code section, originally added by Senate Bill (SB) 1298 in 2012, provides the legislative mandate for the DMV to regulate autonomous vehicles on public roads. Therefore, the DMV's detailed rules are a direct extension of state statute, providing the operational specifics necessary to enforce the legislative intent. The regulations also reference other sections of the Vehicle Code, such as those pertaining to vehicle registration and financial responsibility, ensuring consistency across state motor vehicle laws. Furthermore, the DMV's regulations stipulate that autonomous vehicles must meet all applicable Federal Motor Vehicle Safety Standards (FMVSS), thereby aligning with federal safety requirements for vehicle design and performance. This ensures that California's state-level regulations do not contradict or undermine federal safety mandates but rather build upon them.

The CPUC's autonomous vehicle passenger service programs, while distinct, are intrinsically linked to the DMV's testing framework. Companies seeking to offer paid AV passenger services under CPUC permits must first possess the appropriate corresponding Autonomous Vehicle Tester Program Manufacturer's Testing Permit from the DMV. This hierarchical relationship ensures that vehicles deployed for public service have already undergone and complied with the DMV's rigorous safety testing protocols. The CPUC's rulemaking processes, such as the new proceeding opened in 2025, consider a wide range of issues, including advanced driver-assistant system integration, partnerships with other regulated passenger carriers, and environmental goals, which may relate to other state initiatives like the Green Mile Standard for reducing greenhouse gases from transportation network companies. The entire framework is also subject to ongoing legislative updates, such as AB 1777, which has influenced data reporting requirements and interaction protocols with first responders. This interconnectedness ensures a cohesive and evolving regulatory environment that adapts to technological advancements and broader policy objectives, from vehicle safety to environmental sustainability and public service accessibility.

International Alignment

While the California autonomous vehicle regulations are primarily focused on intrastate operations and compliance within the United States, they indirectly contribute to international alignment through their influence as a leading jurisdiction in AV regulation. California has been at the forefront of developing comprehensive rules for autonomous vehicle testing and deployment, often serving as a model or reference point for other states and even countries contemplating their own AV frameworks. The state's emphasis on safety, rigorous testing protocols, data reporting, and a structured permitting process has set a high bar that resonates with global efforts to ensure the safe development and deployment of AV technology. By requiring adherence to Federal Motor Vehicle Safety Standards (FMVSS), California's regulations implicitly acknowledge and integrate broader international safety principles that are often harmonized or referenced in global automotive standards.

Furthermore, the technological advancements and operational data gathered under California's stringent regulations contribute to a global understanding of AV performance, challenges, and best practices. Many international AV developers and manufacturers operate or seek to operate in California, meaning their vehicles and systems are designed and tested to meet these demanding local standards. This practical engagement by global industry players in California's regulatory environment naturally fosters a degree of de facto alignment in terms of engineering practices, safety methodologies, and operational protocols. While the regulations do not explicitly detail provisions for cross-border cooperation or mutual recognition with other countries' AV frameworks, the common goal of ensuring safety and reliability in AV technology drives a broader, informal convergence of regulatory thinking and industry standards worldwide. The state's continuous engagement with stakeholders, including technology developers and consumer advocates, also mirrors international dialogues on balancing innovation with public protection in the realm of AI and autonomous systems.

Implementation Timeline

Compliance Checklist

Sources and References