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U.S. Transportation Chief Duffy Revs Up Automated Vehicle Future, Cuts Red Tape on Exemption Process

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Published on June 13, 2025
U.S. Transportation Chief Duffy Revs Up Automated Vehicle Future, Cuts Red Tape on Exemption ProcessSource: Wikipedia/U.S. Department of Transportation, Public domain, via Wikimedia Commons

In a move to push forward the future of automated vehicles, U.S. Department of Transportation Secretary Sean P. Duffy has announced a significant simplification of the exemption process for noncompliant automated vehicles. As reported by the Department of Transportation, the revision to the Part 555 process aims to help American AV companies not just to catch up, but to outpace international competition, while maintaining vehicle safety standards.

Previously taking years to procure, these exemptions allow manufacturers to sell up to 2,500 vehicles a year that might not meet all Federal Motor Vehicle Safety Standards—think cars without the usual driver controls like steering wheels or brakes. "The Part 555 exemption process has been rightly criticized for taking years – bogging developers down in unnecessary red tape that makes it impossible to keep pace with the latest technologies," Duffy stated, as per a report by the Department of Transportation

Secretary Duffy's commitment to bolster innovation doesn't stop at making the exemption process more practical. The National Highway Traffic Safety Administration's (NHTSA) Chief Counsel, Peter Simshauser, was cited emphasizing the benefits of this move, "This next step in NHTSA’s AV Framework will advance innovation by supporting the commercial deployment of purpose-built automated vehicles that can satisfy safety requirements," according to a statement obtained by the Department of Transportation. He acknowledged the ongoing work to modernize the FMVSS for automated vehicles until these exemptions become crucial to the growth of the domestic AV industry.

The exemption process overhaul includes internal improvements to make NHTSA's processing times faster, more transparent, and better engaged with applicants. Manufacturers will know just what to expect with improved instructions, for ensuring they provide necessary information up front, while engaging in streamlined application procedures.