Automatic Emergency Braking Rule with the White House for Review
It’s been a discussion for many years but automatic emergency braking (AEB) is getting closer to a standardized piece of technology on heavy trucks. As a reminder, the AEB requirement and/or standardization of performance was included in the Infrastructure Investment and Jobs Act. The rule is required to be finalized by November 15, 2023. In early April, the National Highway Traffic Safety Administration (NHTSA) sent the final rule to the White House Office of Management and Budget (OMB). The OMB has 90 days to review the rule and once approved the rule will be published in the Federal Register and open for public comment.
The rule is deemed to be “economically significant” as it is a regulation either expected to have an annual economic impact of $100 million or more, or materially adversely impacting the economy, sector of the economy, jobs, competition or productivity. As such, the NHTSA must provide a detailed quantification and analysis of costs and benefits. After the rule is published in the Federal Register the analysis will be made public.
In a study released in 2022 in a partnership between automakers and the NHTSA, vehicles with forward collision warning systems and AEB reduced crashes by over 50%. For carriers the rule may mean costlier vehicles heavy on technology with potential savings in crash prevention, litigation and insurance claims.
Nathan is a CPA and has more than ten years of experience providing tax planning, consulting and compliance services to a number of privately held businesses and individuals in a variety of industries, with a special focus on the transportation and logistics industry. He actively communicates with clients and seeks ways to align their individual and business goals with available tax strategies to allow them to make well-informed decisions.
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