CALIFORNIA STATE TRANSPORTATION AGENCY GAVIN NEWSOM, Governor

OFFICE OF THE DIRECTOR

DEPARTMENT OF MOTOR VEHICLES
P.O. BOX 932328
SACRAMENTO, CA 94232-3280

January 7, 2022
Via Email

The Honorable Lena A. Gonzalez, Chair

Senate Committee on Transportation
State Capitol, Room 2209
Sacramento, CA 95814

RE: Tesla’s Full Self-Driving Beta Testing

I am writing in response to your December 7, 2021 letter regarding Tesla’s current

beta testing activities. As further described below, the Department of Motor
Vehicles (DMV) previously concluded that Tesla’s Navigate on Auto Pilot City
Streets (“City Streets”) feature – commonly referred to as “Full Self-Driving” beta
– fell outside the scope of DMV autonomous vehicles regulations. 1 However,
DMV has informed Tesla that the department is revisiting that decision following
recent software updates, videos showing a dangerous use of that technology,
open investigations by the National Highway Traffic Safety Administration
(NHTSA), and the opinions of other experts in this space. If the capabilities of the
feature meet the definition of an autonomous vehicle per California’s law and
regulations, DMV will take steps to make certain that Tesla operates under the
appropriate autonomous vehicle permits.

Regardless of the level of the technology, the DMV shares a common focus and
concern that automated vehicle technology of all levels must be developed,
tested, and deployed in a manner that encourages innovation and addresses
public safety. Working under our current authority and with federal and other
traffic safety partners, DMV is fully committed to enhancing roadway safety and
encouraging the safe and responsible development of this emerging technology.

DMV’s Regulation of Autonomous Vehicles and Evaluation of Tesla’s City Streets

The Society of Automotive Engineers International (SAE) defines six levels of
driving automation – Levels 0-5. The higher the level of automation, the more
capable the automated driving system is in performing the driving task without a
human driver.

1City Streets is one component of a suite of features referred to collectively by Tesla as Full Self-Driving Capability
(https://www.tesla.com/support/autopilot).

California Relay Telephone Service for the deaf or hard of hearing from TDD Phones: 1-800-735-2929; from Voice Phones: 1-800-735-2922

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A Level 0 vehicle has no automation, and the driver performs all the
driving functions.
A Level 1-2 system may be capable of performing some of the driving
functions (such as keeping within the boundaries of a lane or detecting a
preceding vehicle and maintaining speed and vehicle following gap).
However, the human driver is responsible for monitoring the vehicle’s
performance at all times and is still responsible for “driving” the vehicle.
A Level 3-5 system performs the entire task of driving during the time that
an autonomous system is engaged. In a vehicle with Level 3 capability,
the human driver is still a necessity. The driver is expected to take control
of the vehicle when the autonomous system issues a request to the
human driver to take over responsibility for driving the vehicle.

California Vehicle Code Section 38750 defines an autonomous vehicle as a

vehicle equipped with autonomous technology that has the “capability to drive
a vehicle without the active physical control or monitoring by a human
operator.” DMV’s regulations further specify an autonomous vehicle is
equipped with technology that makes it capable of autonomous operation that
meets the definition of SAE Levels 3, 4, or 5. 2

Under California law, Level 2 Advanced Driver Assistance Systems (ADAS) are
not considered autonomous and are not covered by DMV’s regulations. Level 2
systems may enhance safety or provide driver assistance but are not capable of
driving or operating the vehicle without the active physical control or monitoring
of a human.

Consistent with the federal model set forth in the National Traffic and Motor
Vehicle Safety Act (49 U.S.C. chapter 301) (“Safety Act”) – where manufacturers
self-certify to meeting federal motor vehicle safety standards – DMV’s
autonomous vehicle regulations require the manufacturer to certify to their
autonomous system’s capabilities based on their knowledge of the system’s
design, development, and testing. In determining whether a specific
technology falls under the DMV’s jurisdiction, DMV reviews information from the
manufacturer regarding the design, intended capabilities, and operations of the
system. This is an interactive process where the department often meets with
the company and requests additional information to address any departmental

2 Effective January 1, 2022, Senate Bill 500 (Chapter 277, Statutes of 2021) amends the definition of
“autonomous vehicle” in California Vehicle Code Section 38750 to also specify that the technology
integrated into the vehicle “meets the definition of Level 3, Level 4, or Level 5 of SAE International’s
‘Taxonomy and Definitions for Terms Related to Driving Automation Systems for On-Road Motor Vehicles,
standard J3016 (APR2021),’ as may be revised.”

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questions. DMV also consults with technical experts from UC Berkeley California
Partners for Advanced Transportation Technology (PATH), an organization with
leadership and expertise in the research and development of Intelligent
transportation systems and advanced technologies.

In early 2021, based on information provided by Tesla, a demonstration of the

technology for DMV, and consultation with UC Berkeley PATH, the DMV
determined that the City Streets feature – commonly referred to as “Full Self-
Driving” beta – is Level 2 automation.
At DMV’s request, Tesla has periodically provided demonstrations of their
technology. In a demonstration of the City Streets feature on
November 12, 2020, DMV staff observed the human driver was
continuously monitoring the operation of the vehicle and taking over
when necessary in specific situations. The vehicle could not safely
complete the entire task of driving on its own.
In a letter provided to DMV on November 20, 2020, Tesla described
specific limitations of the City Streets feature that cause it to fall within the
Level 2 automation category, including not being able to recognize or
respond to “static objects, road debris, emergency vehicles, construction
zones, large uncontrolled intersections, adverse weather, complicated
vehicles in the driving path, and unmapped roads.” Tesla further stated
that “the (City Streets) feature is not designed such that a driver can rely
on an alert to draw his attention to a situation requiring response.”
In further correspondence responding to DMV questions on
December 14, 2020, Tesla confirmed that the “final release of City Streets
will continue to be an SAE Level 2, advanced driver-assistance feature.”
Tesla noted that their development of true autonomous features (SAE
Levels 3+) “will follow our iterative process (development, validation, early
release, etc.) and any such features will not be released to the general
public until we have fully validated them and received any required
regulatory permits or approvals.”

The City Streets feature, as described by Tesla and observed during the demo, is
not designed to handle all situations that might be commonly encountered
while operating on city streets or alert the driver to intervene when encountering
a limiting situation, and the driver must actively and continuously monitor both
the feature and driving environment. Therefore, DMV, in consultation with UC
Berkeley PATH, determined that the City Streets feature does not meet
California’s regulatory definition of an autonomous vehicle (per Title 13, Article
3.7, section 227.02).

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Other related actions that DMV has taken or will be taking include the following:
DMV has frequently reminded Tesla that – regardless of the level of
autonomy – clear and effective communication to customers, buyers, and
the general public about the technology’s capabilities, limitations and
intended use is absolutely imperative.
The DMV is also reviewing Tesla’s use of the term “Full Self-Driving” for its
technology. Because it is ongoing, the DMV cannot discuss the review until it
is complete.
As mentioned above, DMV will be initiating further review of the latest
releases of Tesla’s “Full Self-Driving” beta, including any expansion of the
program and features. If the capabilities of the feature meet the definition of
an autonomous vehicle per California’s law and regulations, DMV will take
steps to make certain that Tesla operates under the appropriate
autonomous vehicle permits.

DMV Ongoing and Future Actions Related to Automated Driving Systems

DMV recognizes that many Level 2 driving systems are already providing safety
benefits on the road today, such as lane departure warnings and parking
assistance. At the same time, we share the concern held by many other safety
stakeholders about the potential for driver inattention, misunderstanding or
misuse as these systems become more prevalent. Industry, government, safety
organizations, and other stakeholders must work together to ensure that
automated driving technologies are developed, tested and ultimately rolled out
in a manner that builds public trust and provides for the safety of all road users.
Consequently, we want to highlight a few DMV activities that demonstrate a
strong focus on encouraging collaboration, safety, and innovation.

Communication with developers of advanced driving assistance/autonomous

vehicle technology
Automated vehicle systems are an emerging technology, where the design and
capabilities of any manufacturer’s system will evolve over time. A vehicle that
currently meets the definition of a Level 2 could later meet the definition of a
Level 3-5 with the activation of certain hardware/software updates. As part of
its oversight of autonomous vehicle testing and deployment, DMV has and will
continue to proactively reach out to manufacturers to determine whether
technology being developed and operated on public roads is subject to DMV’s
regulations.

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Public education about the technology’s limitations

As Level 2 systems are increasingly equipped on vehicles (e.g. Ford Co-Pilot;
Honda Sensing; GM SuperCruise; Hyundai SmartSense), there will be a greater
need to educate the public about the capabilities and limitations of this
technology. This includes informing consumers that these technology
advancements do not replace safe driving and active monitoring by the driver.
The department stands ready to work closely with other governmental, industry,
and traffic safety stakeholders to support public messaging to inform the public
about the technology that is currently on the road and to prepare for a more
fully autonomous future.

Collaboration with federal partners on motor vehicle safety

Federal and state governments both play an important role in motor vehicle
safety.
At the federal level, NHTSA is responsible for motor vehicle safety in the
United States. NHTSA establishes motor vehicle safety standards, conducts
compliance testing and has broad enforcement authority to investigate
and issue recalls for defects and non-compliance that pose unreasonable
risks to motor vehicle safety.
States address the safe operation of vehicles by licensing drivers,
registering vehicles, establishing insurance requirements and enforcing
traffic safety laws.

DMV works collaboratively with NHTSA to share information regarding safety

programs and issues within our respective areas and functions. The DMV
supports NHTSA’s efforts to use their broad authority over all levels of advanced
driver assistance/automation systems – including Level 2 technology – to collect
information regarding the safety and performance of these systems, investigate
potential safety issues, and take enforcement action as appropriate. Among
those NHTSA efforts:
A NHTSA Standing General Order (https://www.nhtsa.gov/laws-
regulations/standing-general-order-crash-reporting-levels-driving-
automation-2-5) issued earlier this year will increase transparency and
require manufacturers and operators of vehicles equipped with SAE Level
2 advanced driver assistance systems or SAE Levels 3-5 automated driving
systems to report crashes to NHTSA.
As widely reported, NHTSA is currently investigating Tesla vehicle collisions
and also initiated evaluations of SAE Level 2 Advanced Driver Assistance
Systems from other automakers, including Ford, GM, Toyota, and
Volkswagen.

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DMV will continue to engage with NHTSA to identify opportunities for

coordination and collaboration, exchange information, and understand the
outcomes of any NHTSA data reporting, findings, or investigations, including
those that may require action at the state level.

We also support NHTSA’s ongoing efforts to modernize federal motor vehicle

safety standards, which historically have been based on the concept of a
human operating the vehicle. We appreciate that the development of safety
standards is a thoughtful and deliberative process. As Level 2 systems are
increasingly equipped on production vehicles, we encourage both NHTSA and
manufacturers to further explore and identify systemic safeguards that can be
put in place now to encourage the responsible operation of these systems,
including: only allowing system engagement in conditions in which they were
designed to operate, driver monitoring and alerts, and system actions to
address driver inattention or misuse.

Thank you for the opportunity to respond to your questions. The DMV recognizes
that autonomous vehicle technology has the potential to enhance safety and
improve mobility. As Level 2 systems become more prevalent and Level 3-5
systems further mature, DMV will continue to take action to encourage the safe
and responsible development and implementation of autonomous vehicle
technology, while also working with other governmental agencies, the
Legislature, industry, and other traffic safety partners. If you have any further
questions, please contact Barry Steinhart, DMV Deputy Director of Legislation, by
email at Barry.Steinhart@dmv.ca.gov or by phone at 916-657-6518.

STEVE GORDON, Director

Department of Motor Vehicles

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