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Montana Lawmakers Adopt Proactive Stance on Autonomous Vehicle Regulation

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  //automotive-transportation.news-articles.net/co .. ive-stance-on-autonomous-vehicle-regulation.html
  Published in Automotive and Transportation on Wednesday, November 26th 2025 at 19:25 GMT by montanarightnow

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Montana Lawmakers Scrutinize Autonomous‑Vehicle Policy as the State Prepares for a Rapidly Evolving Transport Landscape

The Montana Legislature has moved from a passive posture to an active one on the subject of autonomous vehicles (AVs). In a session that ran from late May to early June 2024, the Senate and House transportation and public safety committees convened a series of hearings, public comment periods, and round‑table discussions that culminated in a set of draft regulations and a legislative agenda. The work is being carried out against the backdrop of rapid technological progress, high‑profile federal initiatives, and a growing, but still uncertain, commercial interest in the state.

1. Why the Legislature Matters

Montana’s vast highways and rural communities are uniquely vulnerable to the kinds of traffic accidents that AVs promise to reduce. A 2023 National Highway Traffic Safety Administration (NHTSA) report estimated that AVs could cut crash‑related injuries by 40% nationwide. For a state that already spends a significant share of its budget on emergency medical services, the potential safety gains have become a high‑profile public policy issue.

The state’s legislative committee, chaired by Senator Jim Brown (R‑Bismarck), noted that the federal government has not yet settled on a definitive regulatory framework for AVs. The federal “Automated Vehicles 2025” roadmap, released by the Federal Highway Administration (FHWA) in March 2024, calls for states to begin preparing for AV deployment while ensuring public safety and cybersecurity. Montana’s leaders decided that a proactive, rather than reactive, stance was essential.

2. The Hearing Process

The first hearing took place on May 14th, where the committee invited representatives from the National Transportation Safety Board (NTSB), the University of Montana’s Transportation Research Institute, and several industry stakeholders including a representative from the autonomous‑vehicle start‑up, BlueSky Mobility, and a spokesperson from the American Automobile Association of Montana (AAAM).

Key points raised:

• Safety Data – The NTSB presented comparative accident statistics from states that have already piloted AVs (e.g., Nevada, Utah, and Arizona). Montana officials asked for guidance on acceptable crash‑rate thresholds and testing protocols.
• Public Acceptance – The University of Montana researcher highlighted that rural drivers are less likely to trust AVs because of limited exposure. The discussion led to a proposal for a statewide educational campaign.
• Economic Impact – BlueSky Mobility projected that autonomous trucking could reduce freight costs by up to 20% in the Montana economy, potentially boosting export of dairy, timber, and grain. However, they also acknowledged the need for a skilled workforce to service and maintain these vehicles.
• Cybersecurity – AAAM representatives stressed that AVs will be highly network‑connected. The committee discussed the need for state-level guidelines on data encryption, software updates, and incident response.

3. Draft Legislation

After the public hearings, the committee drafted a bill (HB 1529), which has already advanced to the Senate’s transportation sub‑committee. The core provisions include:

• Tiered Testing Levels – The bill adopts the U.S. Department of Transportation’s (DOT) classification of AVs from Level 0 (no automation) to Level 5 (full automation). Montana will allow Level 4 (high‑automation but with driver supervision) and Level 5 vehicles on public roads once they pass state‑mandated safety tests. Level 3 (conditional automation) will be restricted to controlled environments such as university campuses or dedicated AV test tracks.
• Insurance Requirements – A new insurance model will replace the current “owner‑operator” policy with a “vehicle‑centric” policy that focuses on the autonomous system’s reliability, rather than the driver’s fault. The bill will provide a federal matching grant to help small companies obtain coverage.
• Data Governance – The law will require AV operators to store crash‑data recorders (CDRs) for a minimum of five years and to share anonymized data with the Montana Department of Transportation (MDOT) and the FHWA.
• Public Input and Transparency – All AV testing plans will be posted online, and a “traffic safety watchdog” sub‑committee will meet quarterly to review incidents, if any.

4. Federal Coordination

Montana’s legislation is not just an isolated state initiative. Senator Brown emphasized that the state will actively collaborate with the FHWA and the NHTSA to align its rules with federal guidelines. Montana will also apply for a federal “Pilot Program” grant, which provides up to $2 million for infrastructure upgrades and AV testing in rural areas.

An additional link explored in the article led to a Federal Register notice (dated May 25th) announcing a call for proposals on “Autonomous Vehicle Pilot Projects for Rural Communities.” Montana’s representative, Ms. Linda Parker, confirmed that her office is already drafting a proposal that leverages the state’s vast, sparsely populated roads to provide “real‑world data” for AV systems.

5. Stakeholder Positions

The article highlighted that most stakeholders agree on one thing: the regulatory framework must balance innovation with public safety. While there is enthusiasm for the potential economic benefits, many are wary of a “race to the bottom” where safety is sacrificed for quick deployment.

6. Timeline and Next Steps

• June 2024 – HB 1529 goes to the Senate transportation committee for a full vote.
• July 2024 – If passed, the bill will require a 90‑day public comment period before being signed into law.
• Fall 2024 – Pilot testing of Level 3 AVs on the 12‑mile stretch of U.S. Highway 287 in Helena.
• Spring 2025 – Full rollout of Level 4 AVs in controlled environments, pending federal approval.

Senator Brown noted that the legislation will also include a sunset clause: if after two years there is no measurable safety improvement, the state will re‑evaluate the program.

7. Bottom Line

Montana’s lawmakers are taking a close, structured look at autonomous vehicle policy, guided by federal input and a mosaic of stakeholder views. By drafting a layered regulatory framework that allows for incremental AV deployment, the state aims to harness the economic advantages while safeguarding its residents. The next several months will be crucial in determining whether Montana’s cautious, data‑driven approach can become a blueprint for other rural states facing similar challenges.