The agency will expedite processing time, improve transparency, and increase engagement with players who apply.

The Department of Transportation Secretary Sean P. Duffy said on Friday that the NHTSA will accelerate the safe development of automated vehicles by streamlining the process that allows manufacturers to sell up to 2,500 motor vehicles per year, which do not fully comply with the Federal Motor Vehicle Safety Standards.

The Part 555 exemption process also applies to vehicles that do not have traditional steering wheels, driver-operated brakes, or rearview mirrors. The agency will expedite processing time, improve transparency, and increase engagement with players who apply for the exemption.

However, manufacturers must demonstrate that their vehicles provide a safety level equivalent to that of compliant vehicles and that the exemption is in the public interest.

“The Part 555 exemption process has been rightly criticized for taking years – bogging developers down in unnecessary red tape that makes it impossible to keep pace with the latest technologies,” Duffy said, while adding that streamlining the process will ensure American robotaxi companies can compete with international rivals.

NHTSA Chief Counsel Peter Simshauser said the agency is continuing to modernize the FMVSS for automated vehicles. In the meantime, Part 555 exemptions will play an integral role in advancing the domestic autonomous vehicle (AV) industry in the U.S.

The Department of Transportation said noncompliant AVs will no longer have to wait years for approval to operate on U.S. roads.

The announcement from the DOT comes as Tesla Inc. (TSLA) is gearing up to pilot launch its robotaxis in Austin, Texas. In a post earlier this week, Tesla CEO Elon Musk said that the company is eyeing June 22 for the launch.

Meanwhile, Alphabet Inc.’s (GOOG) (GOOGL) robotaxi unit Waymo is already operating automated vehicles in select cities across the country.

In April, Duffy unveiled the NHTSA’s new Automated Vehicle Framework aimed at slashing red tape and pushing the commercial deployment of AVs. The framework is aimed at easing rules pertaining to crash reporting for vehicles equipped with certain driver assistance systems.

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