July 25, 2025
The National Highway Traffic Safety Administration’s (NHTSA’s) amended Standing General Order (SGO) 2021-01 on Incident Reporting for Automated Driving Systems and Level 2 Advanced Driver Assistance Systems took effect on June 16, 2025. The revised SGO is part of NHTSA’s new Automated Vehicle (AV) Framework (the Framework) that was announced in late April. The strategy aims to accelerate the deployment of AVs and promote innovation to keep the U.S. competitive with global AV leaders like China.
The program has three overarching principles:
- Prioritize the safety of ongoing AV operations on public roads
- Unleash innovation by removing unnecessary regulatory barriers
- Enable commercial deployment of AVs to enhance safety and mobility for the American public
The first two major actions under the Framework will bring major changes to how AVs are regulated. In addition to streamlining crash reporting for AVs by amending the SGO, NHTSA is also expanding the Automated Vehicle Exemption Program (AVEP) to include domestic AVs that do not fully comply with Federal Motor Vehicle Safety Standards (FMVSS).
SGO amendments target duplicative requirements
As outlined by NHTSA, the amendments to SGO 2021-01 for vehicles equipped with certain automated driving systems (ADS) and advanced driver assistance systems (ADAS) are intended to “streamline the [incident reporting requirements] to sharpen the focus on critical safety information while removing unnecessary and duplicative requirements.”
There are several changes that reduce the number of reports that must be submitted. For instance, instead of requiring each individual company whose AV or equipment is involved in an incident to submit a report, the amended SGO will only require one company, or “reporting entity,” to notify NHTSA about the incident, “unless they have notice of materially different information.”
The amended SGO also reduces the instances when an incident report must be submitted. Previously, incidents involving a fatality, hospital-treated injury, or vulnerable road user had different reporting obligations than incidents that did not have serious injuries or deaths but did involve airbag deployment or vehicle tow-away.
Under the amended SGO, NHTSA must be notified about any incident involving a fatality, hospital-treated injury, vulnerable road user, airbag deployment, or vehicle tow-away within five days of the company receiving notice of the crash. Reporting entities will only be required to submit an updated incident report if they receive materially new or different information related to certain report fields.
Easing barriers for domestically manufactured AVs
The Framework will also open NHTSA’s Automated Vehicle Exemption Program to AVs and vehicles equipped with ADS or ADAS that are built in the U.S. Previously, the AVEP only applied to certain foreign-made vehicles that did not fully comply with FMVSS such as requirements for side mirrors, a steering wheel, driver’s seat, and other features that are not necessary in AVs.
In a letter to automotive manufacturers, NHTSA identified two pathways to exemption. First, the current exemptions that NHTSA allows for foreign vehicles that are noncompliant with FMVSS will be extended to domestic vehicles for non-commercial purposes that involve research or demonstration.
Second, NHTSA aims to enhance an exemption program for both foreign and domestically-produced vehicles under 49 C.F.R. Part 555. This program allows NHTSA to issue temporary exemptions from FMVSS because of “substantial economic hardship, facilitation of the development of new motor vehicle safety or low-emission engine features, or existence of an equivalent overall level of motor vehicle safety.” As NHTSA notes, this exemption allows for broader uses, including commercialization—but it also requires a more extensive application process.
This effort to keep the U.S. competitive with global AV leaders comes after the Department of Commerce’s Bureau of Industry and Security (BIS) issued a final rule on Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles. The rule bans the import of specific “vehicle connectivity system” hardware, including connected vehicles integrating that hardware, and prohibits the import or sale of certain connected vehicles that incorporate software related to vehicle connectivity or ADS from China or Russia. While this may open the market to more U.S. manufacturers, it could also impact the availability of hardware and software for AVs.
Fast track to the future
The U.S. automotive industry has faced significant headwinds in the development of AVs and ADS or ADAS equipped vehicles. While the new Framework should open the door to quicker deployment of AVs and has been welcomed by industry groups like the Alliance for Automotive Innovation, there is also some concern about the changes to incident reporting requirements.
Road safety group Advocates for Highway and Auto Safety issued a statement in response to the amended SGO, cautioning that “without safeguards, safety regulations, transparency and accountability, the success of AV deployment is imperiled at best and could result in deadly consequences at worst.”
As more eyes turn to AVs and growing the U.S. market, manufacturers should be prepared for additional scrutiny from the public and the media. Polls indicate that a majority of the U.S. public is still wary of AVs, which could lead to greater reputational risks from safety incidents that involve driver operated vehicles.
It will be several months before we know whether the changes under the AV Framework speed deployment of AVs or introduce new safety risks for drivers, passengers, and pedestrians. However, manufacturers of AVs and ADS or ADAS equipment should carefully consider their existing recall and incident response plans in light of changes introduced under the AV Framework and make any necessary updates.
Trusted by the world’s leading brands, Sedgwick Brand Protection has managed more than 7,000 of the most time-critical and sensitive product recalls in 150+ countries and 50+ languages, over 30 years. To find out more about our product recall and incident response solutions, visit our website here.
