[Federal Register Volume 91, Number 146 (Friday, July 31, 2026)]
[Notices]
[Pages 48494-48507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-15485]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2025-0523]


Zoox--Grant of Temporary Exemption From Portions of Various 
Requirements of the Federal Motor Vehicle Safety Standards for an 
Automated Driving System-Equipped Vehicle

AGENCY: National Highway Traffic Safety Administration (NHTSA), 
Department of Transportation (Department or DOT).

ACTION: Notice of grant of application for temporary exemption from 
portions of eight Federal Motor Vehicle Safety Standards (FMVSS).

-----------------------------------------------------------------------

SUMMARY: NHTSA is granting an exemption to Zoox, Inc. (Zoox) to allow 
it to manufacture and deploy commercially a passenger car, which is 
equipped with an Automated Driving System (ADS), that does not comply 
with certain requirements in the Federal Motor Vehicle Safety Standards 
(FMVSS). Specifically, NHTSA grants Zoox an exemption for its Zoox 
sedan from certain requirements in eight FMVSS: FMVSS No. 103, 
Windshield defrosting and defogging systems; FMVSS No. 104, Windshield 
wiping and washing systems; FMVSS No. 108, Lamps, reflective devices, 
and associated equipment; FMVSS No. 111, Rear visibility; FMVSS No. 
135, Light vehicle brake systems; FMVSS No. 201, Occupant protection in 
interior impact; FMVSS No. 205, Glazing materials; and FMVSS No. 208, 
Occupant crash protection. NHTSA is granting Zoox's application on the 
basis that compliance with these requirements would prevent Zoox from 
selling, or otherwise commercially deploying, a motor vehicle with an 
overall safety level at least equal to the overall safety level of a 
vehicle that complies with all

[[Page 48495]]

applicable FMVSS. NHTSA grants Zoox an exemption subject to certain 
specified terms and conditions, including the application of an 
enhanced oversight condition. Under this condition, NHTSA will issue 
Operational Authorizations that may update and expand as Zoox's ADS 
technology matures.

DATES: NHTSA grants Zoox's exemption effective from July 31, 2026 
through July 31, 2028.

FOR FURTHER INFORMATION CONTACT: 
    For legal issues: Callie Roach, Office of the Chief Counsel, 
[email protected].
    For technical issues: Emily Shull, Rulemaking Office of Automation 
Safety, [email protected]. Mailing address: National Highway Traffic 
Safety Administration, 1200 New Jersey Avenue SE, Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

I. Executive Summary
II. Authority and Procedures for General Exemptions
III. Zoox's Application
IV. Receipt Notice, Request for Additional Information From Zoox, 
and Comment Summary
V. Framework for Analyzing Zoox's Application
VI. FMVSS-Specific Analysis of Zoox's Application
VII. Compliance With the FMVSS From Which Zoox Seeks Exemption Would 
Prevent Zoox From Selling the Robotaxis
VIII. Analysis of Whether Granting Zoox's Application Is in the 
Public Interest and Consistent With the Objectives of the Safety Act
IX. Conclusion
X. Terms and Conditions

I. Executive Summary

    NHTSA is granting an application submitted by Zoox for an exemption 
from certain requirements in eight FMVSS for its ``Zoox sedan'' model 
(referred to as the ``Zoox robotaxi''). The Zoox robotaxi is a 
passenger car that is equipped with an ADS \1\ and lacks manually 
operated driving controls. In its application, Zoox stated that the 
robotaxi was designed specifically for autonomous ride hailing. The 
vehicle is symmetrical longitudinally, meaning its front and rear are 
identical. The interior is configured in a carriage-style arrangement 
with two rows of seating facing each other toward the center of the 
vehicle. The Zoox robotaxi can be operated with input by a remote 
assistant.\2\ Such inputs include requests to pull over, contextual 
scene information, a suggested path, or help with assessing a scenario. 
It also can be remotely driven,\3\ if necessary, at low speeds within 
line of sight using a handheld controller. Zoox stated that it will not 
sell the robotaxi but will instead maintain ownership and be 
responsible for daily operations, including fleet management, 
maintenance and repair, fleet routing and optimization, remote 
operations support, and customer service.
---------------------------------------------------------------------------

    \1\ For purposes of this Grant Notice, the term Automated 
Driving System and the abbreviation ``ADS'' are used as defined in 
SAE International J3016, ``Taxonomy and Definitions for Terms 
Related to On-Road Motor Vehicle Automated Driving Systems'' (April 
2021), available at https://www.sae.org/standards/j3016_202104-taxonomy-definitions-terms-related-driving-automation-systems-road-motor-vehicles. This standard is hereafter referred to as ``SAE 
J3016.''
    \2\ For purposes of this Grant Notice, the terms ``remote 
assistant'' and ``remote assistance'' are used as defined in SAE 
J3016.
    \3\ For purposes of this Grant Notice, the term ``remote 
driving'' is used as defined in SAE J3016.
---------------------------------------------------------------------------

    NHTSA is granting Zoox an exemption on the basis that ``compliance 
with the standard would prevent the manufacturer from selling a motor 
vehicle with an overall safety level at least equal to the overall 
safety level of nonexempt vehicles.'' \4\ Under this exemption, Zoox is 
permitted to manufacture vehicles that do not need to comply with 
portions of: FMVSS No. 103, Windshield defrosting and defogging 
systems; FMVSS No. 104, Windshield wiping and washing systems; FMVSS 
No. 108, Lamps, reflective devices, and associated equipment; FMVSS No. 
111, Rear visibility; FMVSS No. 135, Light vehicle brake systems; FMVSS 
No. 201, Occupant protection in interior impact; FMVSS No. 205, Glazing 
materials; and FMVSS No. 208, Occupant crash protection. Zoox is 
permitted to manufacture vehicles pursuant to this exemption for two 
years, provided that not more than 2,500 exempted vehicles are 
introduced into interstate commerce for commercial deployment in any 
12-month period.
---------------------------------------------------------------------------

    \4\ 49 U.S.C. 30113 (b)(3)(B)(iv).
---------------------------------------------------------------------------

    As discussed below, NHTSA finds that a Zoox robotaxi that does not 
comply with the FMVSS for which this exemption is being granted would 
provide an equivalent level of safety to a nonexempt vehicle. Further, 
NHTSA finds that requiring compliance with those specific requirements 
would render Zoox unable to deploy commercially a motor vehicle with an 
overall safety level at least equal to that of a nonexempt vehicle. In 
view of the terms and conditions discussed in this notice and to which 
this exemption is subject, NHTSA also finds that granting this 
exemption is consistent with the Safety Act, which requires a finding 
that the exemption is in the public interest and that compliance with 
the standard would prevent the manufacturer from selling a motor 
vehicle with an overall safety level at least equal to the overall 
safety level of nonexempt vehicles.
    The Zoox robotaxi is the first passenger-carrying ADS-equipped 
vehicle to be granted an exemption under NHTSA's general exemption 
authority.\5\ It is also the first exemption to be issued since NHTSA 
introduced process improvements under the Department's Automated 
Vehicle (AV) Framework.\6\ These process improvements have been made in 
accordance with the AV Framework's three core principles: (1) 
prioritize the safety of ongoing AV operations on public roads; (2) 
unleash innovation by removing unnecessary regulatory barriers; and (3) 
enable the commercial deployment of AVs to enhance safety and mobility 
for the American public.\7\ As described in more detail in Section V, 
NHTSA's new approach for processing part 555 exemptions for ADS-
equipped vehicles enhances the agency's ability to process applications 
efficiently and exercise appropriate oversight of the exempt vehicles.
---------------------------------------------------------------------------

    \5\ The first exemption under this authority for an ADS-equipped 
vehicle was granted to Nuro for an occupantless low-speed delivery 
vehicle. See 85 FR 7826.
    \6\ See June 13, 2025 letter to manufacturers at https://www.nhtsa.gov/sites/nhtsa.gov/files/2025-06/part-555-letter-june-2025.pdf.
    \7\ See U.S. Dept. of Transp., Trump's Transportation Secretary 
Sean P. Duffy Unveils New Automated Vehicle Framework as Part of 
Innovation Agenda (Apr. 24, 2025), available at https://www.transportation.gov/briefing-room/trumps-transportation-secretary-sean-p-duffy-unveils-new-automated-vehicle-framework.
---------------------------------------------------------------------------

    There are currently no requirements under the Safety Act that 
prohibit the operation of ADS-equipped vehicles on public roads if the 
vehicle has been self-certified by its manufacturer that it complies 
with all applicable FMVSS and the system does not present an 
unreasonable risk to motor vehicle safety. NHTSA's analysis of whether 
Zoox's vehicle provides an overall safety level at least equal to the 
overall safety level of a vehicle that complies with all applicable 
FMVSS compares Zoox's vehicle to a vehicle that would be identical 
except for compliance with the standards for which Zoox sought 
exemption. NHTSA finds that requiring compliance with the portions of 
the standards listed above is unnecessary to achieve an overall level 
of safety at least equal to that of a nonexempt vehicle because most of 
those provisions require certain features to be provided to assist a 
human and do not provide a safety benefit in a vehicle designed never 
to be driven by a human occupant. The remaining provisions require 
certain

[[Page 48496]]

features and performance that are unnecessary or do not accommodate the 
Zoox robotaxi's novel design.
    NHTSA's safety equivalency analysis is limited to the specific 
requirements under the FMVSS for which Zoox sought an exemption. In 
processing Zoox's application, NHTSA has not made any conclusions 
regarding whether the vehicle otherwise complies with all other 
applicable FMVSS requirements. It remains the manufacturer's 
responsibility to perform a complete analysis of the vehicle's 
compliance with FMVSS requirements.
    Although NHTSA did not consider Zoox's ADS in its safety 
equivalency analysis beyond functional performance that may be directly 
related to a particular exemption, NHTSA has considered the safety and 
maturity of Zoox's ADS in its determination of whether granting the 
exemption would be in the public interest and consistent with the 
objectives of the Safety Act. This consideration informed development 
of operational oversight conditions for this exemption.
    NHTSA is granting this exemption subject to several terms and 
conditions that provide increased transparency of operations and allow 
NHTSA to exercise increased oversight, including to ensure that the 
exempted vehicles do not undermine the public's interest in safe 
operations. In its June 13, 2025 letter to manufacturers, NHTSA stated 
that it was adopting a more dynamic and flexible approach to evaluating 
and overseeing exemptions for ADS-equipped vehicles.\8\ NHTSA has used 
this new approach to process Zoox's application. In granting Zoox's 
exemption, NHTSA is establishing a permanent term that subjects the 
exempted vehicles to continued operational oversight implemented 
through Operational Authorizations. Operational Authorizations 
prescribe specific operating conditions for exempted vehicles and may 
be tailored to different operating environments. The Operational 
Authorizations offer flexibility because they allow NHTSA to oversee 
more dynamically the operations of the exempted vehicles by allowing 
the agency to modify or expand the authorizations as appropriate. The 
first Operational Authorization is being issued concurrently with this 
decision notice and is tailored to Zoox, its robotaxi, and the ADS's 
existing capabilities. NHTSA is placing a copy of the Operational 
Authorization in the docket for this notice.
---------------------------------------------------------------------------

    \8\ https://www.nhtsa.gov/sites/nhtsa.gov/files/2025-06/part-555-letter-june-2025.pdf.
---------------------------------------------------------------------------

II. Authority and Procedures for General Exemptions

    The National Traffic and Motor Vehicle Safety Act (Safety Act), 
codified at 49 U.S.C. ch. 301, et seq., provides the Secretary of 
Transportation with broad authority to exempt motor vehicles from an 
FMVSS or bumper standard on a temporary basis, under specified 
circumstances, and on terms the Secretary deems appropriate. This 
authority is set forth at 49 U.S.C. 30113. The Secretary has delegated 
the authority for implementing this section to NHTSA.\9\
---------------------------------------------------------------------------

    \9\ 49 CFR 1.95.
---------------------------------------------------------------------------

    In exercising this authority, NHTSA must look comprehensively at 
the request for exemption and find that an exemption would be 
consistent with the public interest and with the objectives of the 
Safety Act.\10\ In addition, NHTSA must make at least one of the 
following more-focused findings, which NHTSA commonly refers to as the 
``basis'' for the exemption:
---------------------------------------------------------------------------

    \10\ 49 U.S.C. 30113(b)(3)(A).
---------------------------------------------------------------------------

    (i) compliance with the standard[s] [from which exemption is 
sought] would cause substantial economic hardship to a manufacturer 
that has tried to comply with the standard[s] in good faith;
    (ii) the exemption would make easier the development or field 
evaluation of a new motor vehicle safety feature providing a safety 
level at least equal to the safety level of the standard;
    (iii) the exemption would make the development or field evaluation 
of a low-emission motor vehicle easier and would not unreasonably lower 
the safety level of that vehicle; or
    (iv) compliance with the standard would prevent the manufacturer 
from selling a motor vehicle with an overall safety level at least 
equal to the overall safety level of nonexempt vehicles.\11\
---------------------------------------------------------------------------

    \11\ 49 U.S.C. 30113(b)(3)(B).
---------------------------------------------------------------------------

    NHTSA established 49 CFR part 555, Temporary Exemption from Motor 
Vehicle Safety and Bumper Standards, to implement the statutory 
provisions concerning temporary exemptions. The requirements in 49 CFR 
555.5 state that the applicant must set forth the basis of the 
application by providing the information required under 49 CFR 555.6, 
and the reasons why the exemption would be in the public interest and 
consistent with the objectives of the Safety Act.

III. Zoox's Application

    On August 22, 2025, Zoox submitted an application for exemption 
from portions of eight FMVSS for its ADS-equipped robotaxi. Zoox cited 
two bases for exemption, section 30113(b)(3)(B)(iv) and section 
30113(b)(3)(B)(ii), stating that compliance with these FMVSS would 
prevent Zoox from offering a motor vehicle ``with an overall safety 
level at least equal to the overall safety level of nonexempt 
vehicles'' and that granting the exemption would permit Zoox to 
introduce new motor vehicle safety features ``providing a safety level 
at least equal to the safety level of the standard.''
    Zoox requested an exemption from portions of the following FMVSS:
     FMVSS No. 103: Windshield defrosting and defogging 
systems.
     FMVSS No. 104: Windshield wiping and washing systems.
     FMVSS No. 108: Lamps, reflective devices, and associated 
equipment.
     FMVSS No. 111: Rear visibility.
     FMVSS No. 135: Light vehicle brake systems.
     FMVSS No. 201: Occupant protection in interior impact.
     FMVSS No. 205: Glazing materials.
     FMVSS No. 208: Occupant crash protection.
    Zoox's application provided an overview of the robotaxi, a 
description of each of the specified FMVSS requirements for which Zoox 
is seeking an exemption, and its arguments supporting the required 
statutory findings. NHTSA notes that any of the descriptions provided 
in this section of its application are Zoox's characterizations and do 
not necessarily reflect the views of NHTSA. The application included 
Zoox's claims regarding the safety of the Zoox robotaxi compared to 
nonexempt vehicles and its arguments that granting this exemption would 
be in the public interest.\12\ In addition, Zoox's application stated 
that it anticipates it will comply with all applicable FMVSS at the end 
of the exemption period based on future anticipated regulatory changes 
that account for ADS-equipped vehicles.\13\
---------------------------------------------------------------------------

    \12\ Redacted versions of Zoox's application and supporting 
documents are available in the docket (https://www.regulations.gov/docket/NHTSA-2025-0523).
    \13\ 49 CFR 555.6(d)(3).
---------------------------------------------------------------------------

    Zoox describes the robotaxi as a purpose-built, fully autonomous, 
all-electric vehicle optimized for ride hailing in cities. It is 
classified as a passenger car and has a top speed of 75 mph. The 
vehicle seats a maximum of four passengers and has a gross vehicle 
weight rating (GVWR) of 3,000 kilograms (6,614 pounds). Zoox states 
that its ADS is developed entirely in-house and consists of the 
hardware and

[[Page 48497]]

software collectively capable of performing the entire dynamic driving 
task and fallback on a sustained basis within a specified operational 
design domain (ODD), without any expectation that a passenger will need 
to intervene. Zoox states that, therefore, their system meets the 
description of a Level 4 ADS under SAE J3016: Taxonomy and Definitions 
for Terms Related to Driving Automation Systems for On-Road Motor 
Vehicles (April 2021).
    Unlike conventional human-driven cars, the Zoox robotaxi is 
symmetrical, meaning its front and rear are identical. Rather than 
forward-facing rows, the Zoox robotaxi's seats are configured in a 
carriage-style arrangement where seated occupants face the center of 
the cabin. Zoox states that the primary difference between the Zoox 
robotaxi and a nonexempt vehicle is that the Zoox robotaxi is not 
capable of being driven by a human.\14\ Instead, the Zoox robotaxi is 
equipped with lidar, radar, cameras, long-wave infrared cameras, 
microphones, and other sensors that perceive the environment with 
custom perception software. This information is then fed into planner 
and control systems which plan and execute the driving maneuvers 
autonomously. Zoox explains that, therefore, the Zoox robotaxi is not 
equipped with:
---------------------------------------------------------------------------

    \14\ In the context of this statement, we understand Zoox to be 
referring to the vehicle not being able to be driven by a human 
occupant.
---------------------------------------------------------------------------

     Manually operated driving controls as defined by 571.3 
(i.e., ``system of controls that are used by an occupant for real-time, 
sustained, manual manipulation of the motor vehicle's heading 
(steering) and/or speed (accelerator and brake)'');
     Manually operated ``non-driving'' controls (i.e., a turn 
signal operating unit that is capable of ``cancellation by a manually 
operated control,'' a headlamp beam switching device that is ``designed 
and located so that it may be operated conveniently by a simple 
movement of the driver's hand or foot,'' or a parking brake control 
that ``may be either a hand or foot control''); or
     Human driver visibility aids (i.e., windshield wipers and 
defrosters, sun visors, abrasion-resistant glazing, rearview and side 
mirrors, or a rearview image display).
    Although the Zoox robotaxi lacks manually operated driving 
controls, Zoox personnel (``the Zoox Support Team'') are capable of 
limited, manual, low-speed operation of the robotaxi, with direct and 
constant line of sight, through an industrial handheld ``remote'' 
control.\15\ Zoox also states that other Zoox personnel (``TeleGuidance 
tacticians'') can provide remote guidance to the ADS, and the ADS then 
determines when and how it is appropriate to execute that guidance. 
Zoox states that the tacticians do not have direct control of the 
motion of the robotaxi.\16\
---------------------------------------------------------------------------

    \15\ NHTSA considers operation via the ``remote'' control to be 
remote driving as defined in SAE J3016.
    \16\ NHTSA considers this remote guidance to be remote 
assistance as defined in SAE J3016 and understands Zoox's remote 
assistants can initiate the vehicles to stop, remain stopped, or 
pull over, as well as provide suggested paths or contextual scene 
information.
---------------------------------------------------------------------------

    Zoox's arguments and rationale supporting granting their exemption 
are discussed in the relevant sections below.

IV. Receipt Notice, Request for Additional Information From Zoox, and 
Comment Summary

    NHTSA published a Notice of Receipt of Zoox's application in the 
Federal Register on September 25, 2025.\17\ The Notice of Receipt 
stated that NHTSA had received an application for exemption from Zoox 
and listed the FMVSS containing the requirements for which Zoox sought 
an exemption. The notice told the public that NHTSA made a copy of 
Zoox's application available in the docket and that it would separately 
publish a notice seeking public comment on Zoox's application after 
determining that the agency had received adequate information to 
consider the merits of the request.
---------------------------------------------------------------------------

    \17\ 90 FR 46300.
---------------------------------------------------------------------------

    After conducting an initial evaluation of Zoox's application and 
requesting and receiving additional information from Zoox, NHTSA 
published a notice requesting public comment on March 11, 2026, and 
noted that copies of Zoox's application, appendices, and responses to 
NHTSA's questions were placed in the docket, with redactions of 
information for which Zoox sought confidential treatment.\18\
---------------------------------------------------------------------------

    \18\ 91 FR 04730.
---------------------------------------------------------------------------

    NHTSA received 119 public comments in response to the request for 
comment. NHTSA received one request to extend the 30-day comment period 
from the Transportation Trades Department,\19\ which requested a 90-day 
extension. Before responding to the request, NHTSA received a comment 
from the Transportation Trades Department submitted via email one day 
after the comment period closed, which was added to the docket.\20\ 
Because Zoox's application was made available in September 2025 and the 
emailed comment from the Transportation Trades Department did not 
reference the extension request nor needing additional time for review, 
NHTSA did not extend or re-open the comment period.
---------------------------------------------------------------------------

    \19\ Transportation Trades Department, Docket No. NHTSA-2025-
0523-0064.
    \20\ Transportation Trades Department, Docket No. NHTSA-2025-
0523-0130.
---------------------------------------------------------------------------

    NHTSA received comments both in support and in opposition to 
granting Zoox's application for exemption. NHTSA identified several 
recurring themes among the supportive comments, including discussion of 
transportation infrastructure, accessibility and inclusivity, economic 
benefit, safety, American technological advancement, data gathering, 
and overcoming regulatory hurdles. Some commenters expressed support 
for granting the exemption if subject to certain conditions, such as a 
variety of safety reporting requirements, limitations on the number of 
vehicles, and oversight of the operational domain. Some organizations 
and individuals opposed granting Zoox's application, with comments 
focused on occupant safety, crashworthiness concerns, vehicle testing, 
limited transparency, and Zoox's failure to meet statutory 
requirements. More detailed discussion of specific comments is included 
in the relevant sections that follow.

V. Framework for Analyzing Zoox's Application

    NHTSA's determination of whether to grant a part 555 exemption 
application relies on two analyses: (1) an analysis of whether at least 
one of the four statutory bases for an exemption is met; and (2) an 
analysis of whether granting the exemption would be in the public 
interest and consistent with the objectives of the Safety Act.

A. Selection of Statutory Basis on Which To Analyze Zoox's Application

    Zoox cited two bases for exemption in its application, section 
30113(b)(3)(B)(iv) and section 30113(b)(3)(B)(ii), stating that 
compliance with the specified FMVSS would prevent Zoox from offering a 
motor vehicle ``with an overall safety level at least equal to the 
overall safety level of nonexempt vehicles'' and that granting the 
exemption would permit Zoox to introduce new motor vehicle safety 
features ``providing a safety level at least equal to the safety level 
of the standard.'' NHTSA has decided to consider only the first of 
these bases. Although Zoox's ADS is a new vehicle

[[Page 48498]]

feature that may perform functions related to the exemptions sought, 
NHTSA does not believe they are replacement for those features because 
almost all those features are provided to assist a human driver 
performing the driving task.\21\ In the Zoox robotaxi, the ADS is 
replacing the human driver, not the features designed to assist human 
drivers. Instead, the ADS renders those features superfluous. In this 
situation, because the ADS is not performing the same safety function 
as the features required by the FMVSS for which they are seeking an 
exemption, NHTSA believes the equivalent overall level of safety 
(``EOS'') basis is the appropriate standard under which to evaluate 
Zoox's application.
---------------------------------------------------------------------------

    \21\ Zoox is also seeking exemption from requirements on the 
basis that the design of the vehicle renders those requirements 
unnecessary or inapplicable.
---------------------------------------------------------------------------

    To examine the effects of the requested exemptions and make the EOS 
finding, NHTSA compared the Zoox robotaxi to a nearly identical 
compliant vehicle. NHTSA believes this is the appropriate comparison 
for an EOS analysis based on its interpretation of the statute. NHTSA 
interprets the EOS statutory finding to be narrowed to an analysis of 
the impact on features and performance directly related to the 
exemption requested. In this case, NHTSA views the appropriate 
comparison vehicle to be a hypothetical compliant version of the Zoox 
robotaxi, which is also designed to be exclusively driven by an ADS 
during normal operations. Many of the exemptions sought by Zoox pertain 
to features and performance that assist a human driver in performing 
the driving task. Because the comparison compliant vehicle would also 
be driven exclusively by an ADS during normal operations, the absence 
of those features or that performance would not impact safety if the 
only safety benefit of the requirements is derived from assisting a 
human driver.
    Although not part of its EOS analysis, NHTSA did consider the 
information provided by Zoox about its ADS's ability to perform the 
function of a human driver as it relates to each of the requested 
exemptions as part of the agency's determination of whether granting 
the exemption is in the public interest. The Agency notes, however, 
that there are no performance requirements for an ADS that is replacing 
a human driver performing the dynamic driving task and NHTSA has no 
authority to require a higher level of safety performance in the 
context of deciding whether to grant an exemption. As explained above, 
NHTSA believes the statutory analysis of whether the EOS finding is met 
should be based on the impacts of the specific exemptions sought. 
Because a compliant vehicle may be operated on public roads with Zoox's 
ADS, presuming that it is free from safety-related defects, NHTSA's 
consideration of the ADS's performance is limited. In light of this, 
NHTSA believes that the maturity of the Zoox robotaxi's ADS is best 
considered in the context of an adaptable oversight condition.

B. New Approach to Processing Exemption Applications for ADS-Equipped 
Vehicles

    The Safety Act grants the Secretary, as delegated to NHTSA, 
discretion to condition the grant of an exemption ``on terms [NHTSA] 
considers appropriate.'' \22\ Historically, NHTSA has applied terms and 
conditions to the grant of a General Exemption infrequently and, when 
it did so, only established a single set of static terms and conditions 
that would apply for the lifespan of exempted vehicles. However, the 
statute does not require the terms issued by NHTSA to be static nor 
prescribe how those terms must be implemented. Instead, the statute 
affords NHTSA discretion to apply ``appropriate'' terms and conditions.
---------------------------------------------------------------------------

    \22\ 49 U.S.C. 30113(b)(1) (delegation of authority at 49 CFR 
1.95).
---------------------------------------------------------------------------

    These terms and conditions are applied on a case-by-case basis and 
tailored to the particular exempted vehicles. When evaluating the 
merits of an application, NHTSA may consider whether applying terms and 
conditions are appropriate to ensure that granting the exemption is in 
the public interest or to ensure that the statutory basis on which the 
exemption is granted is met. To enable both better oversight and a 
quicker assessment of the threshold question of whether to grant an 
exemption, NHTSA is adopting a more dynamic and flexible approach to 
applying terms and conditions.
    Because ADS-equipped vehicles are capable of changing performance 
and extending operational design domains over time, NHTSA has found 
that establishing a single set of static terms and conditions for such 
vehicles throughout their lifespan is often impractical and 
inefficient. Static terms also do not always effectively promote motor 
vehicle safety because they cannot account for the dynamic nature of 
ADS technologies. Particularly at an early stage in the development of 
an ADS, capabilities can improve dramatically as the technology 
improves and operational design domains are updated over the lifespan 
of a particular vehicle or generation of vehicles.
    NHTSA announced process improvements in June 2025, one of which is 
the adoption of a dynamic approach for evaluating exemptions for ADS-
equipped vehicles. This approach includes an improved oversight 
structure that provides needed flexibility and can be applied when 
NHTSA believes that such oversight is necessary or appropriate. This 
oversight structure would be established via a permanent term or 
condition in the Grant Notice, which subjects the exempted vehicles to 
continued operational oversight as outlined in operational terms and 
conditions in permission letters.
    NHTSA determined that it would be appropriate to apply the 
operational oversight structure to Zoox's exemption if granted and 
evaluated the merits of Zoox's application with this in mind. Zoox's 
application is the first to be evaluated since NHTSA announced the 
process improvements in June 2025 and, as predicted, NHTSA has found 
that the application of the dynamic oversight structure allows the 
agency to process and evaluate applications more efficiently and 
effectively.
    Within the oversight structure, Operational Authorizations are 
tailored to the individual manufacturer and the ADS's existing 
capabilities. If an exemption is granted, the manufacturer is able to 
begin manufacturing and/or commercially deploying vehicles immediately 
consistent with the terms and conditions of the Operational 
Authorization, which may be modified via subsequent Authorizations, 
such as after a manufacturer requests a change. This approach gives 
NHTSA flexibility to change operational terms quickly, such as by 
expanding the scope of the operational permission as the ADS continues 
to develop.
    This approach also enables NHTSA to process General Exemption 
applications more quickly by allowing the agency to rely on an 
adaptable oversight framework. In turn, NHTSA's initial review can 
focus on the current capabilities of the vehicles, rather than needing 
to develop specific terms and conditions that anticipate possible 
future changes. This process improvement also builds on processes that 
have proven effective for ADS in Special Exemptions issued under 
NHTSA's Automated Vehicle Exemption Program.

[[Page 48499]]

VI. FMVSS-Specific Analysis of Zoox's Application

    This section provides a detailed discussion of Zoox's application 
for exemption from specific portions of eight FMVSS, Zoox's arguments 
of safety equivalency, relevant public comments, NHTSA's analyses, and 
NHTSA's determinations regarding safety equivalency for each of the 
requirements for which an exemption is sought. Seven of the eight FMVSS 
for which Zoox requested exemptions assume the presence of a human 
driver and the availability of manually operated driving controls. In 
each FMVSS-specific section, NHTSA also discusses any related issues 
that were considered in NHTSA's analysis of whether granting Zoox's 
exemption is in the public interest and consistent with the objectives 
of the Safety Act.

A. Analysis of Zoox's Request for Exemption From the Windshield 
Defrosting and Defogging Systems Requirements in FMVSS No. 103 and the 
Windshield Wiping and Washing Systems Requirements in FMVSS No. 104

    Zoox sought exemption from the windshield defrosting and defogging 
systems requirements in FMVSS No. 103 and the windshield wiping and 
washing systems requirements in FMVSS No. 104. Section 4.1 of FMVSS No. 
103 requires each vehicle to have windshield defrosting and defogging 
systems. Sections 4.1 and 4.2.1 of FMVSS No. 104 require each vehicle 
to have a power-driven windshield wiping system and a windshield 
washing system that meets the requirements of SAE Recommended Practice 
J903a and J942, respectively. The Zoox robotaxi is not equipped with 
any windshield defrosting, defogging, wiping, or washing system because 
the vehicle is designed to be operated exclusively by an ADS, which 
perceives the driving environment through exterior-mounted sensors 
rather than through a windshield as a human driver would.
    NHTSA did not receive any specific comments regarding Zoox's 
request for exemption from the requirements in FMVSS Nos. 103 and 104. 
Consistent with the agency's position expressed in the Notice of 
Proposed Rulemaking (NPRM) on modernizing FMVSS Nos. 103 and 104 to 
accommodate ADS-equipped vehicles, NHTSA finds that granting an 
exemption from these requirements would not have a substantive adverse 
safety effect.\23\ Therefore, NHTSA finds that the Zoox robotaxi has an 
overall safety level equivalent to a nonexempt vehicle.
---------------------------------------------------------------------------

    \23\ 91 FR 12537 (March 16, 2026).
---------------------------------------------------------------------------

    Zoox also provided additional information that is relevant to 
NHTSA's determination of whether granting the application is in the 
public interest and consistent with the objectives of the Safety Act. 
Zoox states that the vehicle's exterior-mounted sensors serve as the 
foundation of the ADS's visibility and that the vehicle is equipped 
with sensor cleaning and clearing systems that remove water, debris, 
and frost from the critical viewing surfaces of the sensors. Zoox 
asserts that the performance requirements for the sensor systems were 
derived from the performance requirements of FMVSS Nos. 103 and 104 and 
exceeds these standards, stating that their system must clean or clear 
the entire critical sensing surface whereas FMVSS Nos. 103 and 104 only 
require cleaning or clearing of a percentage of the critical area. In 
assessing the performance of the sensor cleaning and clearing system, 
Zoox stated that it used the test procedures and conditions specified 
in FMVSS Nos. 103 and 104 and SAE Recommended Practice J942 (1965) with 
the only modification being the pass/fail criteria (100% clearance for 
Zoox). NHTSA reviewed test reports provided by Zoox regarding 
defogging, defrosting, and cleansing for critical sensor areas and 
found the performance to be indicative of performance that serves a 
safety purpose analogous to the safety purpose of requirements in FMVSS 
Nos. 103 and 104 for which Zoox sought an exemption.

B. Analysis of Zoox's Request for Exemption From Various Portions of 
FMVSS No. 108 That Reference Turn Signal Operating Units and Headlamp 
Beam Switching Devices

    Zoox sought exemption from Section 9.1.1 of FMVSS No. 108, which 
requires that all vehicles be equipped with a turn signal operating 
unit that is self-canceling by steering wheel rotation and capable of 
cancellation by a manually operated control. Zoox states that there is 
no need for a manually operated (i.e., human operated) turn signal 
operating unit. Instead, based on the vehicle's location and 
trajectory, the ADS's planning system sends a command requesting the 
activation or deactivation of a turn signal. If a command from a remote 
assistant requires the (de)activation of a turn signal, the ADS will 
(de)activate the turn signal as appropriate once the ADS has confirmed 
a path.
    Zoox also sought exemption from S9.4, which requires each vehicle 
to have a means of switching between lower and upper beam headlamps 
designed and located so that it may be operated conveniently by a 
simple movement of the driver's hand or foot. In supplemental 
information submitted by Zoox on May 6, 2026, Zoox explained that it 
has developed and implemented autonomous beam switching.
    NHTSA did not receive any specific comments regarding Zoox's 
request for exemption from the requirements in FMVSS No. 108.
    NHTSA finds that granting an exemption from these requirements 
would not impact safety because the requirements for manually operated 
turn signals and manually operated beam switching devices do not 
provide a safety benefit in a vehicle that would never be driven by a 
human occupant. Therefore, NHTSA finds that the Zoox robotaxi has an 
overall safety level equivalent to a nonexempt vehicle.

C. Analysis of Zoox's Request for Exemption From Various Portions of 
FMVSS No. 111 That Require Interior and Exterior Mirrors and Rearview 
Image Display

    Zoox sought exemptions from requirements in sections 5.1.1 and 
5.2.1 of FMVSS No. 111, which require that all passenger cars be 
equipped with a unit-magnification inside rearview mirror providing a 
20-degree horizontal field of view and a unit-magnification driver's 
side outside mirror, both of which must utilize a film-based or 
silvered-glass reflective surface meeting specified reflectance 
criteria to ensure image clarity and minimize glare.
    Zoox also sought exemption from requirements in section 5.5 of 
FMVSS No. 111 which requires that all passenger cars display a rearview 
image meeting requirements for field of view, size, response time, 
linger time, deactivation, default view, and durability.
    In its application, Zoox states that the safety problem addressed 
by FMVSS No. 111 (i.e., that the ``driver does not have a clear and 
reasonably unobstructed view to the rear'') does not exist in the Zoox 
robotaxi. Instead, the Zoox robotaxi is equipped with a sensor suite, 
including multiple cameras, lidar, and radar, that creates a 360-degree 
field of view with redundancy that, according to Zoox, exceeds the 
field of view specified by FMVSS No. 111 Sections 5.1.1, 5.2.1, and 5.5 
and provides much better total visibility than a human would have in 
any vehicle.

[[Page 48500]]

    The Advocates for Highway and Auto Safety \24\ (``Advocates'') 
commented on the lack of evidence in terms of test results or analyses 
about how the Zoox robotaxi perceives and responds to pedestrians 
within the target range for a sensor or camera used for compliance with 
FMVSS No. 111's rear visibility requirements. The Advocates cited 
NHTSA's recognition that in order for the requirement to meet the need 
for safety the driver needed to both perceive and respond appropriately 
before impact with the pedestrian.
---------------------------------------------------------------------------

    \24\ Advocates for Highway and Auto Safety, Docket No. NHTSA-
2025-0523-0104 at 4.
---------------------------------------------------------------------------

    Although the Advocates are correct that NHTSA established the 
requirement for a rear-view image based on information about how human 
drivers would respond to the presence of objects within the field of 
view, the standard itself does not require a particular response. 
Although the ADS in the Zoox robotaxi will be performing the dynamic 
driving task, NHTSA has not regulated that aspect of motor vehicle 
performance. Accordingly, NHTSA cannot require a higher level of 
vehicle safety performance in the context of evaluating whether to 
grant an exemption simply because a vehicle is being operated by an ADS 
as opposed to a human driver.
    NHTSA also received a comment from the American Automobile 
Association (AAA) \25\ expressing concern with the lack of outside 
mirrors, stating that passengers' exiting the vehicle may have limited 
visibility of approaching cyclists or vehicles.
---------------------------------------------------------------------------

    \25\ American Automobile Association, Docket No. NHTSA-2025-
0523-0121 at 4.
---------------------------------------------------------------------------

    In the Nuro, Inc. grant notice, NHTSA identified potential 
ancillary benefits that mirrors provide, such as providing a warning to 
vehicle occupants exiting vehicles (or opening doors) about approaching 
traffic and persons in the vicinity of the vehicle. An example would be 
a passenger exiting a vehicle without mirrors while also failing to 
look both ways to avoid an oncoming cyclist. Although the outside 
mirror can serve a potential ancillary purpose for exiting passengers 
and oncoming cyclists, FMVSS No. 111 was not designed or drafted with 
this in mind. NHTSA considers these ancillary benefits important, but 
notes that other features may also provide these benefits.
    In supplemental information submitted by Zoox on January 28, 
2026,\26\ Zoox stated that it addresses safe passenger loading and 
unloading by opening only the doors on the side closest to the road 
edge (e.g., curb). Additionally, an audio prompt reminds occupants to 
check for traffic once they arrive at their drop-off location. In 
addition, because the doors pop out slightly and slide along the body 
of the robotaxi, occupants can look both ways with the doors open 
before exiting the vehicle.
---------------------------------------------------------------------------

    \26\ https://www.regulations.gov/document/NHTSA-2025-0523-0004 
at 8.
---------------------------------------------------------------------------

    After considering the information provided by Zoox and the public 
comments, NHTSA finds that the Zoox robotaxi provides an equivalent 
level of safety to a vehicle that complies with the rear visibility 
requirements in sections 5.1.1 and 5.2.1, as well as section 5.5. 
First, NHTSA finds that mirrors do not address the safety problem of 
drivers not having a clear and reasonably unobstructed view to the rear 
in vehicles that will never be driven by a human. Likewise, NHTSA also 
finds that displaying a rearview image that meets the requirements for 
size, response time, linger time, deactivation, and default view do not 
provide a safety benefit for a vehicle that will not be driven by a 
human occupant. We note that Zoox provided test reports demonstrating 
that their vehicle's cameras meet certain requirements in sections 
5.2.1 and 5.5. However, because Zoox requested exemption from sections 
5.2.1 and 5.5 in their entirety, NHTSA evaluated each as such and found 
that the vehicle's rearview image provides an overall safety level 
equivalent to a nonexempt vehicle. Further, while not required for an 
exemption, NHTSA finds that Zoox's approach to ensuring safe passenger 
unloading, by unloading curb side and providing reminders to passengers 
can even substitute for the ancillary benefit provided by exterior 
mirrors.

D. Analysis of Zoox's Request for Exemption From the Manual Brake 
Control Requirements in FMVSS No. 135

    Section 5.3.1 of FMVSS No. 135 requires the service brakes to be 
activated by means of a foot control. In addition, the control of the 
parking brake must be independent of the service brake control and may 
be either a hand or foot control. The Zoox ADS uses control functions, 
carried out through actuators and their associated control systems, to 
activate the service and parking brakes. The ADS then uses a series of 
electronic messages that are relayed to the brake controller to request 
negative torque, similar to a human driver applying the brake pedal or 
pressing a parking brake button.
    AAA \27\ expressed concern with the lack of sufficient public 
details regarding system behavior under cascading failures, performance 
in degraded environments, and robustness of fallback strategies in 
dense urban settings. NHTSA notes that FMVSS No. 135 prescribes minimum 
foundational brake performance requirements. Zoox's application asserts 
that the Zoox robotaxi has been tested and complies with the equipment, 
performance, and warning requirements in FMVSS No. 135, specifically 
the requirements in S5.1, S5.2, S5.4, S5.5, S5.6, and S7.
---------------------------------------------------------------------------

    \27\ American Automobile Association, Docket No. NHTSA-2025-
0523-0121 at 3.
---------------------------------------------------------------------------

    Consistent with the agency's position expressed in the NPRM on 
modernizing FMVSS No. 135 to accommodate ADS-equipped vehicles,\28\ 
NHTSA finds that requiring manual controls for the activation of the 
service and parking brakes is unnecessary for operation of a vehicle by 
ADS. Accordingly, NHTSA finds that a Zoox robotaxi exempt from the 
manual brake control requirements in FMVSS No. 135 would have an 
overall safety level equivalent to a nonexempt vehicle.
---------------------------------------------------------------------------

    \28\ 91 FR 38593 (June 26, 2026).
---------------------------------------------------------------------------

E. Analysis of Zoox's Request for Exemption From the Sun Visor 
Requirements in FMVSS No. 201

    Section 5.4 of FMVSS No. 201 requires each front outboard 
designated seating position to be provided with a sun visor that is 
constructed of or covered with energy-absorbing material. The sun 
visors must also be designed and mounted such that they do not present 
sharp edges or rigid projections that could increase the risk of injury 
during an occupant's head impact.
    In a notice from 1982 that granted an exemption from the 
requirement to provide sun visors, NHTSA stated that sun visors 
function as an occupant protection device by providing impact absorbing 
material in the windshield header area in addition to keeping the sun 
from interfering with the vision of the operator.\29\ Zoox's 
application addresses both of these purposes. Regarding the occupant 
protection function of sun visors, Zoox states that it believes 
rationale for the sun visor requirements is to ``minimize the risk of 
injury from contacting the sun visor'' and argues that because the Zoox 
robotaxi is not equipped with sun visors, there is no need to protect 
the occupants from the sun visors. Regarding the purpose of reducing 
sun glare for human drivers, Zoox notes that

[[Page 48501]]

the ADS is not affected by the presence or absence of a sun visor 
because it does not view the roadway through a windshield.
---------------------------------------------------------------------------

    \29\ 47 FR 34071 (August 5, 1982), Anden Holdings Ltd., Grant of 
Petition for Temporary Exemption From Federal Motor Vehicle Safety 
Standards.
---------------------------------------------------------------------------

    NHTSA did not receive any public comments regarding Zoox's request 
for exemption from the sun visor requirement. After consideration, 
NHTSA believes that the Zoox robotaxi provides an overall level of 
safety equal to that of a vehicle that is not exempt from the sun visor 
requirement because of the positioning of the seats in the Zoox 
robotaxi. Because the seating positions are facing inward, toward the 
center of the vehicle, the header area in which the sun visors would be 
installed is behind the passengers' heads and head restraints. Based on 
the design configuration of the vehicle, NHTSA finds that providing sun 
visors would not provide an occupant protection benefit. Regarding the 
secondary function of sun visors, NHTSA finds that there is no safety 
need to block sun glare for a human driver for a vehicle that will 
never be driven by a human occupant. Therefore, NHTSA finds that the 
Zoox robotaxi provides an equivalent level of safety to a vehicle that 
complies with the sun visor requirement. Inasmuch as the padding on a 
sun visor may provide additional occupant protection when the sun visor 
is in certain positions, the level of energy absorption and volume 
padding in an FMVSS No. 201-compliant sun visor is not defined and will 
vary with different vehicles, different occupant sizes, the positioning 
of the sun visor and various other factors. We note that there have 
been significant improvements in motor vehicle safety since the 
requirement was first issued, including improvements to FMVSS No. 201 
issued in 1995 that established performance requirements for impact 
area inclusive of the area in which sun visors are stowed, thus 
reducing any incremental benefit associated with providing energy-
absorbing sun visors. Zoox stated that the robotaxi has been tested and 
complies with all other relevant components required by FMVSS No. 201. 
For the same reasons, NHTSA believes granting Zoox and exemption from 
portions of FMVSS No. 201 is in the public interest.

F. Analysis of Zoox's Request for Exemption From the Windshield 
Abrasion Resistance and Deviation and Distortion Requirements in FMVSS 
No. 205

    Section 5.1 of FMVSS No. 205 requires that glazing materials used 
in motor vehicles conform to the ANSI/SAE Z26.1-1996 standard, which 
dictates specific performance and testing criteria based on the 
glazing's location and designation as a particular `Item' type. The 
purpose of FMVSS No. 205 is to reduce injuries (e.g., lacerations) 
resulting from impact to glazing surfaces, to ensure a necessary degree 
of transparency in motor vehicle windows for driver visibility, and to 
minimize the possibility of occupants being thrown through the windows 
in collisions. Zoox is requesting an exemption from the requirements 
for their vehicle's windshields to be AS1 glazing.
    Zoox states that none of the glazing in the robotaxi is necessary 
for driving visibility as there is no driver seat and the ADS views the 
world through the sensors mounted on the exterior of the vehicle, not 
through the windows. Zoox states that the glazing at either end of the 
robotaxi (referred to as ``service bays'' by Zoox) is marked ``AS4'' 
and satisfies the associated requirements for Item 4 glazing. In 
addition, Zoox states that the glazing was tested and met the occupant 
safety tests for AS1 glazing. Zoox submitted test reports indicating 
that the glazing used in the service bays on the robotaxis meets the 
requirements for AS4 glazing as well as tests 9, 12, and 26 for AS1 
glazing.
    NHTSA did not receive any public comments about Zoox's request for 
exemption from the requirements for windshields to use AS1 glazing.
    After considering the information provided by Zoox, NHTSA finds 
that glazing used for the service bays is not requisite for driving 
visibility. Accordingly, NHTSA finds that exempting the Zoox robotaxi 
from the requirements for AS1 glazing that relate to driving visibility 
would not have an adverse impact on safety. However, because NHTSA 
believes that the glazing in the service bays should still provide the 
same level of occupant protection as a compliant windshield, NHTSA is 
conditioning Zoox's exemption from the requirement that windshields be 
comprised of AS1 glazing on the glazing meeting AS4 requirements as 
well as tests 9, 12, and 26 for AS1 glazing. Subject to this condition, 
NHTSA finds that the Zoox robotaxi would provide an equivalent level of 
safety to a nonexempt vehicle.

G. Analysis of Zoox's Request for Exemption From the Air Bag Warning 
Label Requirements in FMVSS No. 208

    Section 4.5.1 of FMVSS No. 208 requires each vehicle to have a 
label permanently affixed to either side of the sun visor at each front 
outboard seating position equipped with an inflatable restraint and the 
content must conform with the standard. Zoox reasoned that since the 
robotaxi is not equipped with sun visors, the vehicle cannot comply 
with the requirements of the standard. Instead, Zoox argued that since 
an air bag warning label is conspicuously located adjacent to each 
seating position, the vehicle provides an equivalent level of safety to 
a nonexempt vehicle. Zoox's approach to the air bag warning label 
content and pictogram strays slightly from what is required by 
4.5.1(b), but Zoox argued that the differences more accurately 
represent the design of the vehicle. For example, the Zoox air bag 
warning label references the Zoox App containing the Rider Manual 
rather than the owner's manual,\30\ and the pictogram displays the Zoox 
bespoke air bag design compared to traditional air bags. NHTSA agrees 
that Zoox's approach of relocating the air bag warning labels to a 
location at each seating position, as well as altering the contents of 
the warning label to represent the unique vehicle design accurately 
while still conveying safety information to the occupants, adequately 
addresses the safety need met by S4.5.1(b). Therefore, NHTSA finds that 
the Zoox robotaxi provides an equivalent level of safety to a vehicle 
that complies with the sun visor labeling requirements in FMVSS No. 
208.
---------------------------------------------------------------------------

    \30\ Because Zoox will maintain ownership of its vehicles under 
this exemption, as stated in Zoox's application and in this Grant 
Notice, certain information often found in an owner's manual that is 
relevant to the occupants of the exempted vehicles will be provided 
in a Rider Manual which is accessible via Zoox's website and app.
---------------------------------------------------------------------------

VII. Compliance With the FMVSS From Which Zoox Seeks Exemption Would 
Prevent Zoox From Selling the Robotaxis

    As noted above, NHTSA evaluated Zoox's application on the statutory 
basis that the manufacturer would be otherwise unable to sell a motor 
vehicle with an overall level of safety at least equal to that of a 
nonexempted vehicle. Although the statutory language for equivalent 
overall safety states that NHTSA must find that compliance with the 
FMVSS would prevent Zoox from ``selling'' the robotaxi, this language 
does not limit the application of the statutory basis to only vehicles 
that will be offered for sale (which Zoox states the robotaxi will 
not). Rather, to grant an exemption under the equivalent overall safety 
basis, NHTSA must find that compliance with the standard would prevent 
Zoox from selling the robotaxi regardless of whether Zoox actually 
intends to sell the robotaxi. Section 30113 of the Vehicle Safety Act 
does not require that a vehicle exempted

[[Page 48502]]

under the equivalent overall safety basis enter interstate commerce 
only through a sale, and NHTSA declines to read such a limitation into 
the statute. Accordingly, we have determined that Zoox may introduce 
the robotaxi into interstate commerce by means other than selling, even 
if the vehicle is exempted under this basis.
    Based on its expertise and the information available to it, NHTSA 
finds that granting Zoox's application for its robotaxi would result in 
a vehicle that has an overall level of safety equivalent to a nonexempt 
version of the vehicle. As discussed above, NHTSA has evaluated each of 
the exemptions sought and has determined that exempting the Zoox 
robotaxi from those requirements would not decrease safety. Although 
evaluated individually above, NHTSA also finds that the Zoox robotaxi, 
as exempt from those requirements, provides an overall equivalent level 
of safety to an otherwise identical compliant vehicle that is also 
operated by an ADS. Most of the exemptions sought are for features 
designed to assist human drivers and therefore are unnecessary for a 
vehicle that will not be operated by a human occupant, with the 
remaining exemptions being sought for requirements that are 
incompatible or unnecessary for the Zoox robotaxi's carriage seating 
design.

VIII. Analysis of Whether Granting Zoox's Application Is in the Public 
Interest and Consistent With the Objectives of the Safety Act

    The Safety Act and its implementing regulations provide the 
Secretary and, by delegation, NHTSA with broad authority and discretion 
in determining whether granting the application for temporary exemption 
is consistent with the public interest and objectives of the Safety 
Act. Here, NHTSA finds that granting Zoox's exemption is consistent 
with the public interest and 49 U.S.C. Chapter 301 because doing so 
furthers the Federal Government's interest in facilitating the safe 
development and deployment of innovative transportation technologies, 
which is enabled through NHTSA's oversight authority and conditions the 
agency is placing on Zoox. Given the innovative nature of the Zoox 
robotaxi and the agency's determination that the exemption will not 
lower the safety of the robotaxi as compared to a nonexempt version of 
the vehicle, the agency believes that these reasons are more than 
sufficient to justify this finding.

A. Zoox's Public Interest Argument

    Zoox argued that granting its application for exemption for the 
robotaxi is consistent with the public interest and the objectives of 
the Safety Act for several reasons. Zoox stated that introducing an 
automated robotaxi that meets or exceeds the performance of a human 
driver would enhance the overall safety of the transportation system 
and would directly support the U.S. economy by supporting existing 
businesses and offering consumers additional transportation mobility. 
Zoox also argued the exemption would be in the public interest as it 
would further advance and solidify U.S. standing and leadership in AI 
and automated vehicle technology, as well as signal to the industry and 
global competitors this administration's commitment to ensuring 
American companies can achieve and maintain the lead in automated 
vehicle innovation. Specific to the Safety Act, Zoox argued that safety 
is maintained because the robotaxi provides at least an overall level 
of safety equivalent to nonexempt vehicles. In addition, Zoox asserted 
that the standards from which it seeks exemptions are predicated on the 
presence of physical controls and equipment intended for use by a human 
driver and, therefore, do not improve the safety of a vehicle designed 
to be operated exclusively by an ADS. Zoox also contended that, 
notwithstanding the absence of such driver-related equipment, the 
robotaxi satisfies the underlying performance objectives and safety 
functions embodied in the standards for which exemptions are sought.
    More specifically, allowing for the introduction of the robotaxi as 
it has been designed by Zoox to optimize its performance as a highly 
automated passenger car could further the development of new and 
innovative vehicle automation technologies, which may in turn lead to 
future benefits for vehicle safety and the economy. Although NHTSA 
cannot fully predict the extent to which these benefits will 
materialize in the future and, more specifically, the effect that 
granting this exemption would have on those benefits, the agency 
recognizes that development of the ADS technology necessary to make 
these potential benefits possible is supported by use on vehicles that 
are designed to be automated.
    However, the agency recognizes some of the concerns raised by some 
commenters about ADS and passenger safety, and has imposed conditions 
upon this exemption grant to mitigate safety risks and provide enhanced 
oversight to respond to issues that may arise.

B. Public Interest Issues Raised by Commenters

    NHTSA requested comment from the public on the merits of Zoox's 
application and potential terms and conditions that should be applied 
to the exemption, if granted.
(1) Supportive Comments
    An overwhelming majority of the public comments supported NHTSA 
granting Zoox's exemption, particularly as it relates to public 
interest, though many commenters did not elaborate on their reasoning 
for certain supportive comments. Although NHTSA appreciates public 
participation and takes such comments into consideration, the agency 
will not respond to non-substantive comments in this notice.
    In terms of safety benefits, the Southern Nevada Bicycle Coalition 
\31\ noted that automated vehicles have the potential to eliminate 
common causes of crashes (e.g., distraction, speeding) due to advanced 
sensing, situational awareness, predictive algorithms, and adherence to 
traffic laws. Transform \32\ and the California Bicycle Coalition \33\ 
expressed similar sentiments in terms of safety benefits for vulnerable 
road users.
---------------------------------------------------------------------------

    \31\ Southern Nevada Bicycle Coalition, Docket No. NHTSA-2025-
0523-0029 at 1.
    \32\ Transform, Docket No. NHTSA-2025-0523-0041 at 1.
    \33\ California Bicycle Coalition, Docket No. NHTSA-2025-0523-
0073 at 1.
---------------------------------------------------------------------------

    In addition, some commenters \34\ agreed that granting Zoox's 
exemption was in the public interest because of NHTSA's oversight 
authority, specifically citing that exempting 2,500 vehicles per year 
for two years allows NHTSA to monitor operations closely while allowing 
Zoox to run a commercial service.
---------------------------------------------------------------------------

    \34\ Robo Shepherd Inc, Docket No. NHTSA-2025-0523-0015 at 1; 
Corporation for Automated Road Transportation Safety, Docket No. 
NHTSA-2025-0523-0061 at 2.
---------------------------------------------------------------------------

(2) Child Ridership
    S.D. Thomas LLC \35\ suggested several reporting requirements, 
primarily related to child ridership. For example, reporting on the 
presence of observed children generally and who are incorrectly 
restrained in a child restraint or booster seat was suggested, as well 
as requiring Zoox to provide instructions on properly attaching a child 
restraint to the vehicle and properly restraining a child in a child 
restraint seat. At the

[[Page 48503]]

time of granting Zoox's exemption, riders under the age of eight are 
not permitted. Therefore, NHTSA expects to review relevant materials 
from Zoox and consider incorporating conditions into Operational 
Authorizations, should Zoox seek to expand eligible ridership. Although 
ridership is currently restricted to certain ages, NHTSA acknowledges 
that the seat belts in the robotaxi may not properly fit all children 
ages 8 and above. Zoox's Rider Manual states that parents and guardians 
are responsible for ensuring that children riding with them are safely 
and properly belted, using a booster seat if necessary.
---------------------------------------------------------------------------

    \35\ S.D. Thomas LLC, Docket No. NHTSA-2025-0523-0124 at 8.
---------------------------------------------------------------------------

(3) Passenger Egress
    Several commenters \36\ raised concerns about the safety of the 
Zoox robotaxi. One common theme among safety concerns was passenger 
egress.\37\ Specifically, SMART-TD \38\ and the Transportation Trades 
Department \39\ expressed concern over passenger egress since the 
robotaxi does not have manual door controls. NHTSA notes that, while 
the emergency door handle (EDH) equipped on the robotaxi is not a 
traditional handle commonly seen in conventional vehicles, the robotaxi 
has two methods to open the doors manually. For passengers, a lever is 
located on either side of the interior that, while pulled, allows 
passengers to push the door open. If air bags are deployed, the 
passenger-facing side of the horseshoe air bag provides instructions 
for locating and using the EDH. For first responders located outside 
the vehicle, an exterior door button is available. In the event of a 
severe crash resulting in a non-functioning door button, instructions 
are shown on the exterior of the horseshoe air bag instructing first 
responders where to break the glass to access the EDH.
---------------------------------------------------------------------------

    \36\ Cristina Perez Hesano, Docket No. NHTSA-2025-0523-0034 at 
1; Donald Slavik, Docket No. NHTSA-2025-0523-0035 at 1; Delaney 
Howard, Docket No. NHTSA-2025-0523-0052 at 1; Anonymous, Docket No. 
NHTSA-2025-0523-0083 at 1; Advocates for Highway and Auto Safety, 
Docket No. NHTSA-2025-0523-0104 at 3-4; Transport Workers Union of 
America, Docket No. NHTSA-2025-0523-0105 at 3; SMART-TD, Docket No. 
NHTSA-2025-0523-0107 at 3; American Automobile Association, Docket 
No. NHTSA-2025-0523-0121 at 4; Transportation Trades Department, 
Docket No. NHTSA-2025-0523-0130 at 2.
    \37\ SMART-TD, Docket No. NHTSA-2025-0523-0107 at 3; American 
Automobile Association, Docket No. NHTSA-2025-0523-0121 at 4; 
Transportation Trades Department, Docket No. NHTSA-2025-0523-0130 at 
2.
    \38\ SMART-TD, Docket No. NHTSA-2025-0523-0107 at 3.
    \39\ Transportation Trades Department, Docket No. NHTSA-2025-
0523-0130 at 2.
---------------------------------------------------------------------------

    AAA \40\ expressed concern over the lack of side mirrors and the 
implication on passenger safety during loading and unloading. Although 
Zoox does not have side mirrors, the vehicle incorporates several 
precautionary measures to support safe loading and unloading. At a 
pick-up/drop-off, only the door closest to the road edge will be 
opened. When a pick-up/drop-off occurs outside a parking spot or 
parking lane, the hazard warning signal flasher is activated, causing 
the required turn signals to flash providing a visual indicator to 
external parties the presence of a vehicular hazard and to use caution. 
Finally, upon exiting the robotaxi, an auditory prompt reminds 
passengers to check for traffic.
---------------------------------------------------------------------------

    \40\ American Automobile Association, Docket No. NHTSA-2025-
0523-0121 at 4.
---------------------------------------------------------------------------

(4) Workforce Requirements
    NHTSA received several comments expressing concern over the 
qualifications and training of remote operators. Particularly, the 
Advocates \41\ and SMART-TD \42\ questioned the sufficiency of remote 
operator training and qualifications as details were not provided in 
the public-facing materials. Specifically, both commenters expressed 
concern over the lack of detail provided on workforce training and 
certification standards, communication requirements, location, and 
latency. NHTSA has evaluated Zoox's materials on these matters and has 
found them to be sufficient. Further, NHTSA has placed certain 
conditions in the Grant Notice and Operational Authorization for these 
reasons.
---------------------------------------------------------------------------

    \41\ Advocates for Highway and Auto Safety, Docket No. NHTSA-
2025-0523-0104 at 4.
    \42\ SMART-TD, Docket No. NHTSA-2025-0523-0107 at 3-4.
---------------------------------------------------------------------------

(5) Crashworthiness Testing
    Another common theme among commenters was Zoox's lack of 
crashworthiness testing and data. The Consortium for Constituents with 
Disabilities \43\ and the American Foundation for the Blind \44\ both 
noted that they would like to see testing for people with disabilities, 
as both passengers and pedestrians, before the exemption is granted. 
Although the Americans with Disabilities Act does not require 
accessibility for passenger vehicles not operating on a fixed route, 
NHTSA strongly supports the use of automated driving system 
technologies to expand mobility for people with disabilities. While not 
included as a condition to this exemption, the agency encourages the 
development of safety measures designed to enable safe transportation 
of people with physical and other disabilities, including wheelchair 
securement mechanisms.
---------------------------------------------------------------------------

    \43\ Consortium for Constituents with Disabilities, Docket No. 
NHTSA-2025-0523-0120 at 3.
    \44\ American Foundation for the Blind, Docket No. NHTSA-2025-
0523-0126 at 3.
---------------------------------------------------------------------------

    AAA \45\ and the Service Employees International Union \46\ argued 
that Zoox's safety claims should be supported by scenario-based 
evaluations and independent validation rather than internal metrics. 
NHTSA notes that Zoox provided a significant amount of Zoox's crash 
test data, which were redacted because Zoox claimed those data 
constitute confidential business information (CBI). Although the 
specific information cannot be shared with the public, the CBI provided 
to NHTSA addressed the concerns raised by public commenters in 
sufficient detail for NHTSA to find equivalent or greater overall 
safety.
---------------------------------------------------------------------------

    \45\ American Automobile Association, Docket No. NHTSA-2025-
0523-0121 at 3.
    \46\ Service Employees International Union, Docket No. NHTSA-
2025-0523-0103 at 2.
---------------------------------------------------------------------------

    A comment submitted by S.D. Thomas LLC \47\ asked numerous 
questions concerning Zoox's seating configurations and crash testing. 
However, most questions were addressed previously in Zoox's materials 
while others were out of scope in finding equivalent overall safety. 
The commenter questioned whether Zoox had any additional information on 
equivalent performance evaluations for several crashworthiness 
standards. Zoox confirmed in its application that the Zoox robotaxi met 
all requirements for the remaining applicable FMVSSs. Accordingly, the 
company is not required to provide additional information related to 
the requirements for the standards which they did not seek exemptions. 
The commenter also asked whether the robotaxis meet certain 
requirements \48\ unrelated to the applicable FMVSS, but such 
requirements are not relevant to the requisite FMVSS-specific safety 
equivalence determination.
---------------------------------------------------------------------------

    \47\ S.D. Thomas LLC, Docket No. NHTSA-2025-0523-0124 at 5-7.
    \48\ DOT HS 813 716; DOT HS 813 755; 2026-01-0578; and 2026-01-
0576.
---------------------------------------------------------------------------

C. Additional Issues Raised by Commenters

(1) Confidential Business Information Claims
    Several commenters expressed disagreement with Zoox's CBI claims, 
commonly stating that an application seeking exemption for 
noncompliance should be scrutinized by the public, and that the lack of 
transparency in Zoox's

[[Page 48504]]

application and supplemental materials prevents such scrutiny. Further, 
commenters \49\ recommended that NHTSA require full public disclosure 
as a condition, including remote operations requirements and training, 
performance tests supporting the equivalent level of safety claims, and 
incident data.
---------------------------------------------------------------------------

    \49\ Ross Templeton, Docket No. NHTSA-2025-0523-0108 at 2-5; 
S.D. Thomas LLC, Docket No. NHTSA-2025-0523-0124 at 2.
---------------------------------------------------------------------------

    Zoox has requested that the information in question be treated as 
CBI. Federal law requires NHTSA to protect CBI, including trade 
secrets. See 49 U.S.C. 30167(a). See also 5 U.S.C. 552(b)(4); 18 U.S.C. 
1905; Food Marketing Institute v. Argus Leader Media, 139 S. Ct. 2356 
(2019). NHTSA regulations afford entities like Zoox an opportunity to 
request that certain material submitted to the agency be afforded CBI 
status. See 49 CFR part 512. These regulations require NHTSA to keep 
such information confidential until the agency makes a determination 
regarding its confidentiality. See 49 CFR 512.20. Thus far, NHTSA has 
not reached any determination that the information subject to Zoox's 
request is not entitled to confidential treatment or otherwise 
necessary to disclose. See id. See also 49 U.S.C. 30167. Thus, the 
statutes, regulations, and Supreme Court precedent governing the agency 
prohibit the disclosure of this information. Nevertheless, at various 
places in this notice, NHTSA has sought to describe confidential 
information more broadly to help the public understand the general 
nature of the withheld information.
(2) Regulatory Structure of Part 555
    Several commenters \50\ expressed concern with NHTSA's handling of 
Zoox's exemption more generally. The most common theme mentioned was 
that, if granted, Zoox's exemption may be interpreted as a de facto 
safety standard for future automated vehicles.\51\ NHTSA notes that it 
evaluates all part 555 applicants on a case-by-case basis. Therefore, 
all vehicles are evaluated against the basis, or bases, chosen by the 
applicant.
---------------------------------------------------------------------------

    \50\ Cristina Perez Hesano, Docket No. NHTSA-2025-0523-0034; 
Donald Slavik, Docket No. NHTSA-2025-0523-0035; Delaney Howard, 
Docket No. NHTSA-2025-0523-0052 at 1; Anonymous, Docket No. NHTSA-
2025-0523-0083 at 1; Advocates for Highway and Auto Safety, Docket 
No. NHTSA-2025-0523-0104 at 2; Transport Workers Union of America, 
Docket No. NHTSA-2025-0523-0105 at 2; SMART-TD, Docket No. NHTSA-
2025-0523-0107 at 2-3; Ross Templeton, Docket No. NHTSA-2025-0523-
0108 at 1; S.D. Thomas LLC, Docket No. NHTSA-2025-0523-0124 at 2; 
Transportation Trades Department, Docket No. NHTSA-2025-0523-0130 at 
2.
    \51\ Cristina Perez Hesano, Docket No. NHTSA-2025-0523-0034 at 
1; Transport Workers Union of America, Docket No. NHTSA-2025-0523-
0105 at 2; SMART-TD, Docket No. NHTSA-2025-0523-0107 at 2-3; Ross 
Templeton, Docket No. NHTSA-2025-0523-0108 at 1; S.D. Thomas LLC, 
Docket No. NHTSA-2025-0523-0124 at 2; Transportation Trades 
Department, Docket No. NHTSA-2025-0523-0130 at 2.
---------------------------------------------------------------------------

    Several commenters \52\ argued that NHTSA should prioritize the 
development of standards applicable to ADS-equipped vehicles like the 
Zoox robotaxi instead of considering individual exemptions on a case-
by-case basis. NHTSA acknowledges the need to amend its standards to 
apply to innovative designs and is in the process of modernizing 
several FMVSSs to account for the lack of manually operated driving 
controls in such vehicles. The agency notes the Vehicle Safety Act was 
designed to provide flexibility for manufacturers developing vehicles 
with advancing technology through exemptions that allow for limited 
deployments of non-conforming vehicles. Such exemptions are not 
intended to provide a permanent deployment pathway, which requires 
rulemaking.
---------------------------------------------------------------------------

    \52\ Transport Workers Union of America, Docket No. NHTSA-2025-
0523-0105 at 1; SMART-TD, Docket No. NHTSA-2025-0523-0107 at 3; Ross 
Templeton, Docket No. NHTSA-2025-0523-0108 at 1; Transportation 
Trades Department, Docket No. NHTSA-2025-0523-0130 at 2.
---------------------------------------------------------------------------

    The Advocates \53\ raised concern over Zoox's lack of compliance in 
the past, citing Zoox's claims of self-certification and NHTSA's 
Special Order and Audit Query. NHTSA notes that a part 555 exemption 
allows NHTSA to maintain enhanced oversight over the exempted vehicles 
and operations.
---------------------------------------------------------------------------

    \53\ Advocates for Highway and Auto Safety, Docket No. NHTSA-
2025-0523-0104 at 2.
---------------------------------------------------------------------------

D. Discussion of Conditions

    NHTSA grants this exemption subject to a number of terms, violation 
of which enables the agency to take appropriate action, up to and 
including a determination that the exemption is no longer in the public 
interest, which is a ground for the agency to terminate the exemption 
under 49 CFR 555.8(d). NHTSA may also take appropriate enforcement 
action under its broad defect authorities. Further, NHTSA may--and 
has--established terms that continue to apply to the vehicles 
throughout their service life where it determines such continued 
application is necessary, considering the public interest and the 
objectives of the Safety Act.
(1) Number of Vehicles
    The Safety Act limits exemptions granted under the equivalent level 
of safety basis to a maximum of 2,500 vehicles to be sold in any 12-
month period.\54\ Consistent with this statutory provision, NHTSA is 
granting Zoox an exemption to manufacture and introduce into interstate 
commerce for commercial deployment up to 2,500 vehicles. However, the 
total number of exempted vehicles that may be simultaneously operated 
is limited to the maximum number of vehicles permitted in the initial 
Operational Authorization, which may be modified in subsequent 
Authorizations.
---------------------------------------------------------------------------

    \54\ 49 U.S.C. 30113(d).
---------------------------------------------------------------------------

(2) Oversight Condition
    The terms of this exemption are designed in consideration of the 
public interest and include both grant and operational conditions. The 
grant conditions are considered fixed conditions because they 
contributed to NHTSA's overall safety finding and therefore cannot be 
changed without a modification to this exemption. Zoox must comply with 
the grant conditions for the life of the exempted vehicles. They are 
detailed in Section X of this Grant Notice.
    In addition, NHTSA anticipates that Zoox's operations, ODD, and use 
case will change over time. Therefore, NHTSA believes the public 
interest is best served through a condition that requires continuing 
NHTSA oversight of the operation of the exempted vehicles. This 
oversight is most consistent with the public interest when exercised 
through a set of operational conditions that can be updated over time 
to remain relevant to Zoox's evolving technology and operational use 
case. These conditions are set forth in an Operational Authorization. 
The operational conditions are intended to be adaptable to the changing 
ADS and operations and therefore, may be modified, added, or removed 
throughout the lifecycle of the vehicle. The operational conditions 
must be followed by Zoox and all parties involved.
    NHTSA notes that many of the terms the agency has involved in this 
Grant Notice and the Operational Authorization are similar to those 
NHTSA has previously imposed on the importation of noncompliant ADS 
vehicles under 49 CFR part 591, though, consistent with the differing 
requirements of part 591, Zoox's exemption will allow for commercial 
deployment, rather than only testing and demonstration.

[[Page 48505]]

(3) Labeling
    Under 49 CFR 555.9(b), a manufacturer of an exempted vehicle must 
securely affix to the windshield or side window of each exempted 
vehicle a label containing a statement that the vehicle meets all 
applicable FMVSS in effect on the date of manufacture ``except for 
Standard Nos. [Listing the standards by number and title for which an 
exemption has been granted] exempted pursuant to NHTSA Exemption No. 
__.'' This label is intended to notify prospective purchasers about the 
exemption and its subject. Under Sec.  555.9(c)(2), this information 
must also be included on the vehicle's certification label.
    The text of Sec.  555.9 does not expressly indicate how the 
required statement on the two labels should read in situations in which 
an exemption covers a portion of an FMVSS. In this case, NHTSA believes 
that a blanket statement that the vehicle has been exempted from each 
of the standards in its entirely, without an indication that the 
exemption is limited to specific provisions, could lead to confusion 
about the nature of Zoox's exemption.
    Accordingly, with regard to the requirement in 49 CFR 555.9(c), 
NHTSA is adding a condition that Zoox must affix to each exempt Zoox 
robotaxi a label that meets all applicable requirements of 49 CFR part 
567 and that ends with the phrase ``except for specific requirements 
within Standard No. 103--Windshield defrosting and defogging systems; 
Standard No. 104--Windshield wiping and washing systems; Standard No. 
108--Lamps, reflective devices, and associated equipment; Standard No. 
111--Rear visibility; Standard No. 135--Light vehicle brake systems; 
Standard No. 201--Occupant protection in interior impact; Standard No. 
205--Glazing materials; and Standard No. 208--Occupant crash 
protection, exempted pursuant to NHTSA Exemption No. 2026-01.''
    Further, because the Zoox robotaxi will not be sold to consumers 
but will instead be operated by Zoox for ride hailing services, NHTSA 
is adding a condition that would require Zoox to provide language about 
Zoox's exemption in its Rider Manual in lieu of affixing a temporary 
label to the windshield or side window as specified in Sec.  555.9(b). 
The purpose of the requirement to affix a label to the window or side 
window is to inform prospective purchasers about a vehicle's exemption. 
Because the Zoox robotaxi will not be sold to consumers, NHTSA finds 
that it would be in the public interest to provide information to 
consumers via alternative means. Zoox suggested the inclusion of 
language in their Rider Manual and NHTSA agrees that would be 
appropriate and would better fulfill the purpose of the requirement in 
Sec.  555.9(b). Accordingly, NHTSA is establishing a condition that 
would require Zoox to provide the required language in its Rider Manual 
and include brief, plain language descriptions of the requirements from 
which the Zoox robotaxi is exempt. NHTSA is also requiring Zoox to 
provide sample language for its Rider Manual within 30 days of 
publication of this Grant Notice.
(4) Conditions Suggested by Commenters
    Several commenters \55\ recommended conditions that NHTSA should 
put in place before granting Zoox's part 555 exemption. NHTSA 
incorporated a number of commenters' suggestions into Zoox's initial 
set of conditions. However, NHTSA also determined many of the 
commenters' suggestions to be out of scope for the purpose of this 
exemption or already addressed in Zoox's application and supplemental 
materials.
---------------------------------------------------------------------------

    \55\ Advocates for Highway and Auto Safety, Docket No. NHTSA-
2025-0523-0104 at 4-5; Transport Workers Union of America, Docket 
No. NHTSA-2025-0523-0105 at 4-5; SMART-TD, Docket No. NHTSA-2025-
0523-0107 at 4-5; Ross Templeton, Docket No. NHTSA-2025-0523-0108 at 
2-5; S.D. Thomas LLC, Docket No. NHTSA-2025-0523-0124 at 8-9; 
Transportation Trades Department, Docket No. NHTSA-2025-0523-0130 at 
3.
---------------------------------------------------------------------------

    The Advocates,\56\ SMART-TD,\57\ and the Transportation Trades 
Department \58\ suggested NHTSA require full public disclosure of 
various aspects of Zoox's operation, including incident data and 
workforce management. Although NHTSA has determined it unnecessary for 
Zoox to disclose all aspects of its operations, Zoox has said it 
intends to disclose aspects of its safety clearance process in the 
future.
---------------------------------------------------------------------------

    \56\ Advocates for Highway and Auto Safety, Docket No. NHTSA-
2025-0523-0104 at 5.
    \57\ SMART-TD, Docket No. NHTSA-2025-0523-0107 at 4.
    \58\ Transportation Trades Department, Docket No. NHTSA-2025-
0523-0130 at 3.
---------------------------------------------------------------------------

    The Advocates \59\ recommended NHTSA require Zoox to coordinate 
with State and local authorities and communicate effectively with the 
public in all localities where Zoox operates. NHTSA agrees with the 
value of public disclosure and has included Condition X.J in this Grant 
Notice to require disclosure of Zoox's operating areas. In addition, 
NHTSA expects to request Zoox's coordination plans prior to expansion 
to new operational areas. The Advocates \60\ also suggested NHTSA 
condition Zoox's exemption on making all exempted vehicles readily and 
individually identifiable. However, NHTSA has determined this condition 
to be unnecessary as the robotaxis are currently labeled clearly with 
Zoox markings, license plates, and VINs on either end of the vehicle.
---------------------------------------------------------------------------

    \59\ Advocates for Highway and Auto Safety, Docket No. NHTSA-
2025-0523-0104 at 5.
    \60\ Advocates for Highway and Auto Safety, Docket No. NHTSA-
2025-0523-0104 at 5.
---------------------------------------------------------------------------

    Several commenters also suggested that NHTSA implement certain 
reporting requirements. The Transport Workers Union of America,\61\ 
SMART-TD,\62\ and Ross Templeton \63\ suggested Zoox be required to 
report on the number of personnel employed, both by Zoox and 
contractors, including the location of workers, relevant 
qualifications, and total hours spent performing duties. Certain 
aspects of this request are incorporated into Zoox's reporting 
requirements at the time of granting (see Condition X.I), while other 
aspects like total hours spent performing duties are unnecessary for 
compliance with other conditions relevant to safety performance which 
are included in the initial Operational Authorization (e.g., remote 
assistance performance, fleet operations personnel roles and 
responsibilities). Additional suggested reporting requirements included 
the number of ``floaters'' who may be reassigned or called upon to do 
remote operations duties, the total number of exempted vehicles removed 
from service due to safety-related maintenance issues, median hourly 
compensation and employee benefits, and the annualized turnover rate. 
NHTSA does not believe details like these are necessary for the 
agency's safety-focused operational oversight at the time of granting 
this exemption. In the future, reporting requirements may be added 
should NHTSA deem them necessary.
---------------------------------------------------------------------------

    \61\ Transport Workers Union of America, Docket No. NHTSA-2025-
0523-0105 at 4-5.
    \62\ SMART-TD, Docket No. NHTSA-2025-0523-0107 at 2-5.
    \63\ Ross Templeton, Docket No. NHTSA-2025-0523-0108 at 2-5.
---------------------------------------------------------------------------

    Finally, three commenters \64\ suggested NHTSA place a condition on 
Zoox's exemption prohibiting any use that would require additional 
exemptions from Federal agencies and from marketing for use by public 
transportation agencies, though they did not specify the reasons for 
such

[[Page 48506]]

conditions. NHTSA has included a term requiring compliance with all 
Federal, State and Local laws (see Condition X.E) and determined 
additional conditions unnecessary as the other agencies have authority 
to administer their respective exemptions.
---------------------------------------------------------------------------

    \64\ Transport Workers Union of America, Docket No. NHTSA-2025-
0523-0105 at 4; SMART-TD, Docket No. NHTSA-2025-0523-0107 at 5; 
Transportation Trades Department, Docket No. NHTSA-2025-0523-0130 at 
3.
---------------------------------------------------------------------------

E. Conclusion That Granting Zoox an Exemption Is in the Public Interest 
and Consistent With the Objectives of the Safety Act

    Based upon the Federal government's interest in facilitating the 
safe deployment of innovative transportation technologies, and public 
interest arguments raised by Zoox and commenters, NHTSA has determined 
that granting Zoox a temporary exemption, subject to the terms and 
conditions established in this notice (Section X) and the Operational 
Authorization letter, is in the public interest. Although Zoox and 
public commenters offer a variety of reasons for why granting Zoox's 
exemption is in the public interest, NHTSA's analyses primarily turn on 
questions of motor vehicle safety.
    NHTSA believes that ADS technology has the potential to improve 
safety and mobility in the transportation of both people and goods. 
While these benefits are still largely aspirational and unquantifiable, 
they provide reasons to grant the exemption, especially after finding 
that exempt Zoox robotaxis have an equivalent or greater level of motor 
vehicle safety compared to an otherwise identical FMVSS-compliant 
vehicle. NHTSA also notes that ADS technology is being deployed on 
public roads and the agency does not believe that exempt Zoox robotaxis 
would pose additional risks to motor vehicle safety compared to a 
compliant vehicle using the same ADS. The difference in safety, 
however, between granting or denying Zoox's application is that with 
this grant, as NHTSA has formulated it, NHTSA has more direct and 
tailored oversight. With this increased oversight, NHTSA finds that 
granting the exemption would be net positive for safety. Accordingly, 
because of the other benefits associated with facilitating Zoox's 
deployment of a vehicle with a novel design with requiring unnecessary 
features, NHTSA also finds that, overall, granting Zoox's exemption is 
consistent with the public interest and the objectives of the Safety 
Act.

IX. Conclusion

    Pursuant to 49 U.S.C. 30113(b)(3)(B)(iv), NHTSA is granting 
Temporary Exemption No. 2026-01 to Zoox for the production of its 
``Zoox sedan'' model vehicle from paragraph S4.1 of FMVSS No. 103; 
paragraphs S4.1 and S4.2.1 of FMVSS No. 104; paragraphs S9.1.1 and S9.4 
of FMVSS No. 108; paragraphs S5.1, S5.2.1, and S5.5 of FMVSS No. 111; 
paragraph S5.3.1 of FMVSS No. 135; paragraph S5.4 of FMVSS No. 201; the 
requirement of FMVSS No. 205 that windshields be comprised of AS1 
glazing; and paragraph S4.5.1 of FMVSS No. 208, subject to the 
condition provided that Zoox complies with the terms described in 
Section X. The exemption shall be effective from July 31, 2026 through 
July 31, 2028.

X. Terms and Conditions

    The terms set out in this grant notice are specific to Zoox's 
``Zoox sedan'' model, a robotaxi vehicle, based on information provided 
by Zoox in its application and supplemental information provided to 
NHTSA. These terms include an Operational Authorization, which governs 
the public road operation of the exempted vehicles. In general, the 
Operational Authorization describes processes for reporting changes to 
vehicle operations and capabilities and requesting to operate under 
changed conditions. If NHTSA finds that a change to the vehicle affects 
the overall equivalent level of safety finding by which this exemption 
was granted, NHTSA may require Zoox to request a modification to the 
exemption, which would require notice and public comment and would be 
processed under 49 CFR 555.8. Violation of any of the terms included in 
this notice or the associated Operational Authorization are grounds for 
NHTSA action, up to and including termination of the exemption.

A. Operational Authorization

    Zoox must comply with all terms and conditions in the applicable 
Operational Authorization(s). The Operational Authorization will govern 
the operation of the exempted vehicles on public roads and may be 
modified by NHTSA as appropriate or necessary. NHTSA may issue 
additional Operational Authorizations that contain specific conditions 
on an operation-to-operation basis, and therefore, multiple 
Authorizations may exist concurrently depending on operating areas, 
locations, or routes. Zoox must be able to access and provide vehicle, 
ADS, and other data to NHTSA as required by the reporting conditions 
specified in the Authorization. The Operational Authorizations will be 
made publicly available in the docket for this exemption notice (NHTSA-
2025-0523).

B. Vehicles Permitted Under the Current Exemption

    The current exemption applies exclusively to the Zoox sedan model 
vehicle described in Zoox's application and supplemental documentation.

C. Labeling

    In accordance with 49 CFR 555.9(c), Zoox must affix to each exempt 
Zoox sedan vehicle a label that meets all applicable requirements of 49 
CFR part 567 and that ends with the phrase ``except for specific 
requirements within Standard No. 103--Windshield defrosting and 
defogging systems; Standard No. 104--Windshield wiping and washing 
systems; Standard No. 108--Lamps, reflective devices, and associated 
equipment; Standard No. 111--Rear visibility; Standard No. 135--Light 
vehicle brake systems; Standard No. 201--Occupant protection in 
interior impact; Standard No. 205--Glazing materials; and Standard No. 
208--Occupant crash protection, exempted pursuant to NHTSA Exemption 
No. 2026-01.''
    In lieu of affixing securely to the windshield or side window of 
each exempted vehicle a label in the English language containing the 
statement required by 49 CFR 567.4(g)(5) and including the language 
specified above in accordance with Sec.  555.9(c), Zoox may instead 
provide the required language in its Rider Manual and include brief, 
plain language descriptions of the requirements from which the Zoox 
sedan is exempt. Zoox must provide sample language for its Rider Manual 
within 30 days of publication of this Grant Notice.

D. Equipment Requirement for the Vehicles

    The glazing in the Zoox robotaxi's ``service bays'' must meet all 
requirements for AS4 glazing as well as tests 9, 12, and 26 for AS1 
glazing.

E. Compliance With Federal, State, and Local Laws

    Zoox, the robotaxis, and their operation must comply with all 
Federal, State, and local laws and requirements. Each vehicle must be 
duly permitted, if applicable, and authorized to operate upon all 
roadways traversed in the manner and conditions described in the 
associated Operational Authorization. Zoox remains responsible for 
communicating, cooperating, and coordinating with law enforcement 
personnel as may be necessary in the deployment regions. This exemption 
does not supplant or affect any recall or reporting obligations that 
may arise

[[Page 48507]]

under the Safety Act for the subject vehicles.

F. Inspection

    The Zoox robotaxis must be made available for inspection by NHTSA 
upon request.

G. Sale and Transfer of Possession

    Zoox must maintain operational control of all vehicles under this 
exemption for the entire life of the vehicles. Zoox shall not sell, or 
transfer possession of, or title to, any vehicle, and shall not license 
it for use, or operate it on the public roads, except under such terms 
and conditions authorized by NHTSA.

H. Modification, Suspension, or Revocation of an Exemption

    NHTSA may modify, suspend, or revoke an exemption, in its 
discretion and as appropriate, including upon determining that:
    a. The exemption is no longer consistent with the public interest 
and the objectives of the Act, for example if NHTSA determines that the 
robotaxi(s) or its operation(s) presents an unreasonable risk to 
safety, which may include if the robotaxi contains safety-related 
defects that NHTSA determines cannot be satisfactorily remedied or 
otherwise mitigated; or
    b. The exemption was granted on the basis of false, fraudulent, or 
misleading representation or information.

I. Location of Personnel Involved in Safety-Critical Tasks

    Zoox shall ensure that all personnel involved in safety-critical 
tasks (e.g., remote assistants) are located in jurisdictions within the 
Continental United States such that the location of remote personnel 
does not degrade system safety, data integrity, or regulatory 
accountability. To mitigate the risks associated with signal 
degradation, Zoox must ensure that these locations provide a 
communication environment where geographic distance does not introduce 
prohibitive latency or jitter. Performance for these operations must be 
validated against Zoox's safety clearance process to ensure that the 
vehicle remains within a safe, controllable state at all times, with 
the burden on Zoox to ensure that the chosen remote architecture 
maintains a level of safety according to its process.
    Beyond technical performance, the location of remote personnel must 
allow the chain of accountability to remain intact regardless of 
physical jurisdiction. All remote assistants must comply with Zoox's 
training requirements and procedures. Zoox must verify that the chosen 
geographic distribution ensures all remote personnel remain reachable 
and legally accountable to U.S. law enforcement and regulatory bodies.

J. Disclosure of Operating Areas

    To ensure transparency regarding where exempted vehicles are 
operating on public roads, Zoox must publish maps of current operating 
areas indicating where the vehicles operate on public roads in each 
city, county, or State. The maps must be made available to the public 
on Zoox's website and must be updated no later than 14 days after any 
substantive change in the operating area.

K. Reporting Manufactured Vehicles

    Zoox must submit an Annual Report to NHTSA identifying the VINs of 
all vehicles manufactured under the exemption. The report should 
identify, by VIN, whether each vehicle is continuing to operate on 
public roads. If none of the vehicles have operated on public roads for 
more than two (2) consecutive years, you are no longer required to 
submit an Annual Report until operation resumes, if applicable. In 
addition, the Annual Report should include a list of the geographic 
locations of all remote assistance centers involved in operation of the 
vehicles on public roads.
    Authority: 49 U.S.C. 30113 and 49 U.S.C. 30166; delegations of 
authority at 49 CFR 1.95 and 49 CFR 501.5.

    Issued on July 28, 2026 under authority delegated in 49 CFR 1.95 
and 501.5.
Jonathan Morrison,
Administrator.
[FR Doc. 2026-15485 Filed 7-30-26; 8:45 am]
BILLING CODE 4910-59-P