The Nickel Report

Over the past two weeks the National Highway Traffic Safety Administration (NHTSA) has taken notable steps in its larger effort to address and develop a uniform framework for automated vehicles (AVs). Last week NHTSA published a request for public comment on an exemption application which, if granted, would exempt certain AVs from safety requirements and enable large-scale deployment of these vehicles nationwide. This development was closely followed by NHTSA’s issuance of two notices of proposed rulemakings (NPRM), which propose to exempt AVs from specific Federal Motor Vehicle Safety Standards (FMVSS). This progression suggests agency recognition of the realities of evolving technology and a corresponding willingness to take a flexible approach to the applicability of certain FMVSSs to AVs.

Exemption Application

On March 11, 2026, the National Highway Traffic Safety Administration (NHTSA) published a request for public comment on the merits of an application to exempt Zoox, Inc.’s (Zoox) automated driving system (ADS)-equipped vehicle, the “Zoox robotaxi,” from certain safety requirements deemed unnecessary for vehicles designed to be operated exclusively by ADSs.

The administration seems to be supportive of this development, as evidenced by Secretary Sean Duffy’s remarks at the National AV Safety Forum on March 10, 2026. Secretary Duffy affirmed the Department of Transportation’s (DOT) commitment to removing regulatory barriers for AV development and commented that Zoox’s AV deployment of a “purpose-built steering wheel-free robotaxi” would “mark[] a major milestone toward providing the American AV industry with a streamlined pathway to scale commercial deployment of novel AV fleets.”  

NHTSA seeks comment on the merits of this exemption application and, if granted, on potential terms and conditions that should be applied to a temporary exemption. NHTSA is accepting comments for thirty days, closing on April 10, 2026. After receiving and considering public comments, NHTSA will publish its reasoning and decision in the Federal Register.

Background

Under the National Traffic and Motor Vehicle Safety Act (the Safety Act) and implementing regulations, NHTSA is authorized to define classes of motor vehicles and prescribe FMVSS.^[1] Generally, manufacturers may only sell and import vehicles that comply with all applicable FMVSS. 49 U.S.C. § 30112(a)(1). Under the Safety Act, however, certain manufacturers can apply for and be granted a temporary exemption, excusing certain vehicles from specific FMVSS. 49 U.S.C. § 30113. These exemptions may be granted for up to three years and then may be renewed upon application and approval. Id.

Zoox’s Exemption Application

On August 22, 2025, Zoox submitted an application for exemption for its “Zoox robotaxi.” Specifically, Zoox petitioned for a two-year temporary exemption which would excuse Zoox from fully complying with eight FMVSS in the production and sale of its Zoox robotaxi and enable Zoox to deploy 2,500 of these vehicles per year. Zoox requests NHTSA to exempt the Zoox robotaxi from equipment requirements that are necessary only for vehicles driven by human drivers, not vehicles driven by ADSs. Requirements such as windshield defrosting and defogging systems, windshield wipers, manual lighting controls, interior and exterior mirrors, and sun visors are purposeless in ADS-driven vehicles.

In accordance with NHTSA regulations^[2], Zoox’s application provides a description of its vehicle and safety features and explains how aspects of the Zoox robotaxi make portions of specific FMVSS obsolete. For example, Zoox’s application explains that the “Zoox robotaxi cannot be operated by a human driver and therefore does not need or have manual driving controls or other items of physical equipment that are for the use and benefit of a human driver.” Zoox Application at 10. Zoox maintains that “nevertheless, the Zoox robotaxi meets (and in many cases exceeds) the underlying performance requirements that would be satisfied by those discrete pieces of equipment, sometimes by using an alternate demonstration method.” Id.

The application also provides a detailed explanation of ADS capabilities, general operational procedures, and Zoox’s public interest arguments. Zoox requests the Zoox robotaxi be except from portions of the following FMVSS:

1. FMVSS No. 103, “Windshield defrosting and defogging systems”
2. FMVSS No. 104, “Windshield wiping and washing systems”
3. FMVSS No. 108, “Lamps, reflective devices, and associated equipment”
4. FMVSS No. 111, “Rear visibility”
5. FMVSS No. 135, “Light vehicle brake systems”
6. FMVSS No. 201, “Occupant protection in interior impact”
7. FMVSS No. 205, “Glazing materials”
8. FMVSS No. 208, “Occupant crash protection”

NHTSA NPRMs

On March 16, 2026, NHTSA took initial steps in developing a federal AV standard when it issued two notices of proposed rulemakings (NPRMs) to amend FMVSS Nos. 102, 103, and 104 to accommodate ADS-equipped vehicles. See 91 Fed. Reg. 12,532 (Mar. 16, 2026) (issuing NPRM to amend FMVSS No. 102); 91 Fed. Reg. 12,537 (Mar. 16, 2026) (issuing NPRM to amend FMVSS Nos. 103 and 104). These rulemakings would exempt ADS-equipped vehicles from having a transmission shift position display, a windshield defrosting and defogging system, and a power-driven windshield wiping system that clears portions of the windshield at regular intervals. These NPRMs suggest that NHTSA is committed to addressing AVs and is working towards developing a uniform federal standard. NHTSA seeks 30-day public comment for both of these NPRMs, closing on April 15, 2026.

Growing Interest in AVs

Throughout the last several years, there has been a growing interest in regulating and developing scaled commercial deployment of AVs. In 2019 and 2022, General Motors (GM) petitioned NHTSA to exempt certain AVs from specific FMVSS.^[3] GM subsequently withdrew both of these petitions. Under the Biden administration, NHTSA investigated Zoox’s compliance with applicable FMVSS. In December 2024 NHTSA issued Zoox an inspection report documenting its findings, which included several noncompliances with applicable FMVSS. This prompted Zoox to petition NHTSA for exemptions under the Trump administration, which has prioritized AV development.

At the National AV Safety Forum last week, Secretary Duffy seemed optimistic about Zoox’s application and confident that DOT will successfully develop a single federal AV framework. Secretary Duffy emphasized DOT’s commitment to developing this framework over the past year and stated: “we can’t have 50 rules, 50 states, and try to think that our companies can scale with all these different rules. We should have one American standard. You can develop a vehicle, deploy a vehicle, scale a vehicle, and it can be used in all of the states throughout the country.”

If NHTSA grants the petition, it would allow Zoox to deploy 2,500 exempted vehicles per year, which will likely jumpstart AV deployment nationwide. This momentum may push the agency to reconsider FMVSS application industrywide amidst growing technology and creative vehicle use.

Contact Brian Stansbury at bstansbury@hunton.com or Sadie Mapstone at smapstone@hunton.com with questions about NHTSA’s latest NPRMs or interest in submitting comments.

[1] See 49 U.S.C. §§ 30102, 3011, and 30113.

[2] See 49 C.F.R. § 555.6(d).

[3] See 84 Fed. Reg. 10182 (Mar. 19, 2019); 87 Fed. Reg. 43595 (Jul. 21, 2022).