Recent nonpartisan polling found that Californians view economic conditions – such as the cost of living and inflation – as the top problems they’re facing. More than a third say their personal financial picture is worse from a year ago, while seven in 10 expect bad economic times for the next year as well. These opinions are backed by basic statistics: food prices in the Los Angeles area increased 3.1% in the last year and California has the third highest cost of living in the U.S. At the same time, California businesses, ranchers, farmers and manufacturers are facing ongoing supply chain challenges to get the goods they need and to get their products to customers.
Autonomous trucks offer tremendous opportunities to solve these problems and transform how freight moves in the state and to the rest of the country. Boosted and more resilient supply chains give businesses of all sizes more certainty and flexibility, keeping shelves full and inventory stocked. Increased speed and capacity benefits empower farmers to unlock new agricultural markets, improve freshness, and reduce spoilage. Likewise, autonomous technology reduces fuel consumption by at least 10%, keeping logistics costs lower on top of important environmental benefits. In addition, many of the leading autonomous truck companies are based in California, and their success will help grow jobs in the state.
Faced with these economic challenges and an identified innovative solution, it’s perplexing to see some California lawmakers supporting a bill to ban autonomous trucks altogether. AB 2286 is the twin of a bill from last year that Governor Newsom vetoed for being “unnecessary.” An autonomous truck ban is a ban on economic growth, new jobs, and a more agile supply chain.
When it comes to the future of our supply chain and economy, let me be clear: truck drivers are essential. Government data shows that freight volume in the U.S. is expected to jump by 50% by 2050. Unfortunately, there’s already a shortage of 78,000 drivers, and that’s expected to double in just seven years. The numbers simply don’t add up to meet this growing demand. Autonomous trucks will help to fill in the gaps, partnering together with truck drivers.
California agencies recognize how important technological investments like autonomous trucks are to supply chain infrastructure. State transportation officials are some of the world’s leading experts on AV safety, working for years on public workshops and a constructive process to regulate autonomous trucks and support supply chains. Similarly, California’s economic development officials have supported AV truck technology, opposing this ban, calling the bill an “inflexible approach to regulating a growing industry borne out of California’s innovation economy.”
Companies of all sizes and industries want California to be a core link in their supply chain. After several years of precipitous declines, the ports are winning back business. Autonomous trucks are one in a series of innovation-driven solutions to maintain California’s economic and logistics leadership, while powering new job growth. A U.S. Department of Transportation study projects autonomous trucks will create up to 35,100 jobs each year and boost the economy by over $68 billion in the next 30 years. The industry hires experienced drivers with commercial licenses, while also opening doors for people in many fields. From terminal operators to fleet technicians, remote assistance specialists to mapping experts, these jobs offer exciting opportunities for people with a wide range of skills and education backgrounds.
Notably, forty-two percent of Californians say the state’s budget situation is a “big problem.” AB 2286 would not only waste years of agency resources in developing an appropriate policy framework for autonomous trucks – it would create workload and external contracts for the DMV “with costs likely in the millions of dollars.” California’s motor vehicle budget is already expected to be insolvent by fiscal year 2025 and reach a negative balance of $1.4 billion in fiscal year 2028. AB 2286 would become a legislature-driven budget problem for California’s taxpayers.
Consumers and businesses are looking for relief from higher prices, long delays and other supply chain challenges. Autonomous trucks stand to provide long-term solutions. The future of American trucking will be coexistence and collaboration between truck drivers and autonomous trucks. Lawmakers should reject AB 2286 and work with both the AV industry, workers and other stakeholders in pursuit of a better future. By combining the strengths of human drivers and autonomous trucks, we can create a better situation for all: more opportunities for workers, new jobs, and a stronger, more resilient economy.
Jeff Farrah is the chief executive officer of the Autonomous Vehicle Industry Association (AVIA). He grew up in Torrance, California.
