ISE13/20-21

• Technological advancement and innovation is reshaping mobility by bringing autonomous vehicle ("AVEH") closer to reality. Hailed as transport of the future, AVEH may eliminate human errors blamed for most accidents, reduce the manpower need for drivers in an ageing society, and upgrade the transport system with more accessible services. Vehicles can generally be classified into six automation levels (0 to 5).^{1Legend symbol denoting The classification system is developed by Society of Automobile Engineers International. See SAE International (2018). The Mainland also has a similar classification system of its own.} Level 0 refers to no automation as the driver does all the driving. At Levels 1 and 2, the driver is helped by a driver assistance system(s)/partial automation system (e.g. lane-keeping, cruise control, and assisted parking). These vehicles are already available in the market and are permitted to be driven on roads. Level 3 is a transitional level of conditional automation where the human driver may be asked to intervene under certain conditions. At Levels 4 and 5, the vehicle is driven by a highly or fully automation system without the need for human driver intervention.
• Anticipating the revolutionary changes, policy makers in major economies have already begun making or considering strategic moves in policy and legislation to facilitate the trial or use of AVEH reaching certain automation level.^{2Legend symbol denoting See Imai (2019).} In Hong Kong, the policy on AVEH is still at infant stage compared with other Asian places like Singapore. Yet this may soon change as the Government plans to set up a regulatory sandbox to promote AVEH trial and application. This issue of Essentials reviews Hong Kong's policy on AVEH, particularly on testing of AVEH reaching at least Level 3 for the purpose of deployment, with reference to the experience of Singapore which shares a similar city environment with Hong Kong, and is recognized as most ready for AVEH in terms of its policy, legislation and public acceptance.^{3Legend symbol denoting Singapore is ranked in 2020 as the most ready for AVEH adoption among 30 places in a survey. See KPMG (2020).}
• The introduction of AVEH to the roads may take several stages. After the design and build stage undertaken by the AVEH maker, the AVEH may enter the field test stage (i.e. off road or public road test) when the AVEH maker can verify the AVEH's capabilities in real world conditions, and fine-tune its system or software with the test feedbacks. For places wishing to introducing AVEH, this stage is particularly crucial to ensure not only that the AVEH is safe, but also has integrated with their transportation systems and acclimatized to the local environments before moving on to the final deployment stage.

Opportunities and challenges of autonomous vehicle

• While international standards on AVEH do not exist now, a common feature shared by AVEHs is the use of camera, sensor and radar system, and artificial intelligence for automatic operation.^{4Legend symbol denoting There is no common AVEH standard internationally, though efforts are being made for that. For example, the United Nations Economic Commission for Europe endorsed in June 2020 the first standard for conditionally autonomous vehicle. The Vienna Convention on Road Traffic has also allowed automation technology use since 2016 but it still requires a human driver in full control of and responsible for the behaviour of the vehicle in traffic. See UNECE (2020).} AVEH may also interact with smart road infrastructures and vehicles, forming an intelligent transport system via the wireless communication network. As part of the smart city concept, AVEH presents huge opportunities, such as improved traffic safety and emissions, higher productivity and efficiency, and better comfort and accessibility. Major car makers are also racing in AVEH research and development to keep their competitive edge in the rapidly transforming global vehicle market. It is forecast that the global passenger AVEH market can generate an annual revenue of US$7 trillion (HK$54.6 trillion) by 2050 when half of the vehicles sold are AVEH.^{5Legend symbol denoting See Intel (2017).}
• Despite the potential benefits, AVEH also brings new challenges and risks. Among them is AVEH safety as machine failures are not unconceivable given the complexity of the new technology. Another challenge is legal liability as the "driver" now being held accountable for the vehicle behaviour may need to be redefined. As a result, who (owner, manufacturer, software designer, or system operator) should be liable for accident has to be clarified.^{6Legend symbol denoting Some places have begun to address the complicated legal liability issues. However, no jurisdiction has come up with a "comprehensive and convincing liability framework" for accidents involving autonomous vehicles. See Law Reform Committee (2020).} What could further complicate an AVEH operation is how ethical dilemmas are addressed in AVEH's "crash algorithm" when an accident is inevitable.^{7Legend symbol denoting A conceivable situation is that the AVEH may swerve to the pedestrian pavement to avoid a collision that may result in more injuries than not swerving. In Germany, an ethics commission was set up to study this kind of problems and has developed some basic principles, such as precedence of property damage over human injury, and no distinction based on personal features in "dilemmatic situations". See Federal Ministry of Transport and Digital Infrastructure (2017).} Apart from these, AVEH may also create privacy and cyber-security risks.
• To harness AVEH to its full potential, adjustments to road infrastructures (e.g. clear road marking and sign), the making of high-definition roadmap, and provision of sufficient bandwidth for data exchanges with road infrastructures and other AVEHs may be necessary. Given these challenges and risks, AVEH road tests on public roads are particularly important by generating sufficient and localized data to validate the AVEH software and system. Such road tests, if safely conducted, may also increase the public acceptance of AVEH.

Autonomous vehicle policy of Hong Kong

• AVEH is one of the elements of the Government's Smart City Blueprint released in 2017, the Smart Mobility Roadmap in early 2019, and the Smart City Blueprint 2.0 in December 2020. The Roadmap highlights that the introduction of AVEH will hinge on how AVEH interacts with road users and infrastructures, and how it can be deployed in public transport. Generally, industry players are optimistic about the prospect of AVEH in Hong Kong as both the technology and talents are available in the city. However, there is a view that a "complete ecosystem" for AVEH development is yet well-established and more supporting policies for AVEH are necessary.^{8Legend symbol denoting See CGCC (2018).}
• AVEH is normally not designed, constructed and operated in compliance with technical standards of conventional vehicles. As such, it is unlikely to meet existing vehicle registration and licensing requirements.^{9Legend symbol denoting The Transport Department had been cautious over driver assistance systems, once banning the use of unapproved auto lane-changing and auto-steering technology. See Transport Department (2016).} At present, the operation of AVEH on any road can only be possible with a "movement permit" issued by the Commissioner for Transport ("the Commissioner"). Such permit, as allowed under the Road Traffic (Registration and Licensing of Vehicles) Regulations (Cap. 374), is never intended for AVEH trial, as it caters for unlicensed vehicle which is "not normally used on road" and "driven only for the purpose of proceeding from one site to another".^{10Legend symbol denoting The movement permit had catered for the movement of vehicles from one construction site to another. See Hong Kong e-Legislation (2020) and Environment, Transport and Works Bureau (2005).} As such, the Regulations still require a qualified driver driving the vehicle and only allow a permit validity period of no longer than 12 months. Under the permit, the Commissioner may exempt the vehicle from complying with other provisions of the Regulations, and impose conditions on the time and route of movement.
• To help industry players understand the requirements and procedure, the Transport Department ("TD") had issued a three-page guideline in 2017, which was further expanded to a set of eight-page Guidance Notes in December 2019.^{11Legend symbol denoting The 2019 Guidance Notes has added similar elements adopted by overseas jurisdictions like Australia on the requirement for a safety management plan encompassing system failure, hacking, driver errors and vehicle failure, and a public engagement plan.} Generally, the permitting requirements include (a) a roadworthy AVEH that meets certain technical standards such as a safe breaking distance as required by TD, (b) "appropriate insurance coverage" in force throughout the trial period, (c) the presence of a competent driver with a valid driver licence for at least three years in the vehicle to take control when necessary, and (d) risks mitigation measures supported by a hazard analysis and risk assessment. The Guidance does not provide any penalty for a permit holder for failing to follow the requirements, except that the permit may be revoked.
• The permitting process has enabled at least 30 trials involving at least eight AVEH models at various venues, including West Kowloon Cultural District and Science Park since mid-2017.^{12Legend symbol denoting See GovHK (2019).} To facilitate AVEH tests,^{13Legend symbol denoting Some AVEH developers had reportedly claimed that they were not permitted by the Government to operate their vehicles on public roads, which has forced them to move their trials to the Mainland. See SCMP (2017).} the Science Park has also set up in November 2018 an Autonomous Vehicle Road Testing Hub to assist TD in evaluating AVEH's roadworthiness before public road test can be conducted. The hub has a size of 929 square metres and has replicates of commonly used road signage in Hong Kong.^{14Legend symbol denoting See Hong Kong Science and Technology Parks Corporation (2020).} According to the Government, no AVEH had ever been tested on public roads as at July 2019. Yet, the Airport Authority has recently planned to launch in 2027-2028 autonomous minibus carrying passengers to and from the boundary crossing of the Hong Kong-Zhuhai-Macao Bridge and intended to extend its service to the Tung Chung town centre.
• Recently, the Government has taken a more proactive role by setting up a Technical Advisory Committee on the Application of Autonomous Vehicle Technologies in Hong Kong in November 2019 which comprises members who are experts from the trade and research institutions. The Committee will "explore how best to draw up an appropriate regulatory framework for AVEHs". Apart from updating the Guidance Notes, TD has also begun studying the "necessary legislative amendments" required to allow the industry to conduct trials of innovative technology through a "regulatory sandbox" approach, which should be more facilitative and comprehensive compared with the current "movement permit" scheme not intended specifically for AVEH. The objective is to foster a suitable and safe road environment for such trials. In the meantime, TD will also facilitate joint trials involving AVEH and related vehicle technology such as "vehicle to everything" on public roads.^{15Legend symbol denoting See GovHK (2019 and 2020).}

The Singapore experience

• As part of Singapore's smart nation blueprint launched in 2014, the Singapore government considers AVEH capable to satisfy the nation's long term mobility needs in passenger and freight transport constrained by land and manpower shortage. In 2014, the government set up a high level committee charting the strategic AVEH policy.^{16Legend symbol denoting The Committee on Autonomous Road Transport comprises international experts, academics, industry leaders and government officials to chart the strategic development direction for AVEH. Apart from this, the government also collaborated with research bodies and universities to form the Singapore AVEH initiative to drive research and test-bedding for AVEH and establish the Centre of Excellence for Testing and Research of Autonomous Vehicles to support the related works.} Since then, it has endeavored to remove barriers and introduce supporting policies and measures for AVEH, including testing, development and deployment. Indeed, places other than Singapore, regardless whether they are traditional car-making bases, have also taken relevant steps to facilitate the testing and use of AVEH.^{17Legend symbol denoting South Korea took regulatory changes to allow AVEH test and deployment and set regulatory standards for Level 3 AVEH. To help test AVEH, it has also opened one of the world's largest test bed known as "K-City". In addition to these, the Korean authorities have also been making 3D high-definition maps, preparing for national traffic signs harmonization, and linking traffic signals to vehicle in real time. Japan has also passed a law in 2019 to allow the use of AVEH meeting a certain automation level to run on public road, and adopt a set of mandatory safety standard for AVEH and conditions of use. On the Mainland, a national framework for running AVEH trials has been promulgated since 2018 and major cities like Guangzhou, Shanghai, Beijing and Shenzhen have all set up test beds for AVEH.} Below are the key elements of its initiatives taken by Singapore in the past five years:
  
  

  (a)	Removing the legal uncertainties over AVEH trial and use: The Road Traffic Act was amended in February 2017. For the first time ever, Singapore has legally recognized the special status of AVEH by defining the autonomous vehicle, system and automation technology in the Act. While the law does not specify, the Minister for Transport has stated that the law will apply to Level 3 AVEH or above.18Legend symbol denoting See Ministry of Transport (2017). Specifically, the amendment has introduced a "balanced and light-touched" and adaptive "regulatory sandbox", prescribing various testing requirements in law: (i) no AVEH trial or use is allowed unless it is authorized by the Land Transport Authority ("LTA"); (ii) exemption is given to AVEH from meeting the technical specifications of conventional vehicles in an approved testing or special use; (iii) LTA is empowered to flexibly create and amend rules for individual AVEH trial or use as and when needed, so that road user safety is not compromised while AVEH innovation is not stifled; and (iv) hindering and obstructing an AVEH trial or interfering the equipment and device of an AVEH is a punishable offence. The sandbox is set for five years and after that it may be extended or new permanent regulation may be enacted;
  (b)	Setting out the test rules and conditions: under the rules introduced by LTA in August 2017 after the regulatory sandbox launch, AVEH trial proponent must convince LTA with supporting documents that the AVEH is safe for use in the intended manner in the trial. Before road test, the AVEH is required to pass a safety assessment jointly administered with police at an enclosed testing facility (see sections below), demonstrating its ability to handle basic manoeuvres and stop safely upon detection of an obstacle.19Legend symbol denoting See Land Transport Authority (2018). LTA can also attach different conditions in approved trials. These conditions may include the presence of a qualified safety driver or operator ready to take control when necessary, third party liability insurance, prohibition form carrying passengers or goods, and installation of data recorder collecting required information. These conditions are broadly similar to Hong Kong's Guidance Notes, except that failure to comply with the conditions is a punishable offence with a fine of up to S$10,000 (HK$57,000). Moreover, LTA also gives flexibility to the AVEH trial proponent to place a deposit bond of S$1.5 million (HK$8.6 million) in case it is unable to secure adequate liability insurance for the proposed trial;
  (c)	Provision of a dedicated testing facility: to support extensive trials under the sandbox, Singapore has built a dedicated AVEH test circuit in Jurong Innovation District. The facility will also help develop Singapore's AVEH testing requirements and AVEH standards for Singapore in order to support its AVEH deployment in the long term. The 20 000-square metres enclosed facility with a 3.2 km track jointly developed by LTA and other parties, has come into operation since 2017. The facility offers varied testing scenarios, by replicating different elements of Singapore's roads with common traffic schemes, road infrastructures, and traffic rules. It also features a rain simulator and a flood zone to test AVEHs' navigation capabilities in extreme weather and a simulated high-rise environment to mimic radio interference;
  (d)	Extensive public roads/areas for test: if an AVEH passes the facility's safety assessment, it may be allowed to conduct public road tests in designated areas, proceeding from simple to more complex and varied test environments. Singapore has gradually expanded these test roads from 6 km in 2015 to 70 km in 2017, and the road areas now feature different land uses including residential. LTA is also opening up the entire western Singapore, with over 1 000 km of public roads for tests, paving for long haul journey and inter-town service AVEH deployment in the future. To improve safety, LTA also monitors the activities of AVEHs operated on public roads real-time through its autonomous vehicle monitoring and evaluation system; and
  (e)	Development of national standards: aiming to speed up AVEH applications, the Singapore government has collaborated with the industry and relevant organizations to develop a set of provisional national standards on AVEH at Levels 4 and 5 to guide the development. Known as Technical Reference-68 and considered the world's first set of guidelines for fully automated AVEH, the standards cover four areas, namely the basic driving behaviour, safety, cyber-security, and data. The Singapore government also hopes that the standards can also help build up the AVEH ecosystem including startups and SMEs as well as testing, inspection and certification service providers.

• With the favourable environment brought by the policy and measures above, Singapore has become a vibrant testing ground for AVEH. In particular, LTA has proactively engaged and collaborated with major industry players, potential users, and research institutions to introduce and deploy AVEHs in Singapore. Since 2015, Singapore has carried trials involving different vehicle types, such as the world's first autonomous taxi, coach and minibus, and has planned a pending truck platooning test for its container port area. As at July 2018, 14 AVEHs had been tested on public roads. While there was a setback in 2016 when an autonomous taxi was involved in a minor accident and sparked public concerns over AVEH safety,^{20Legend symbol denoting A driverless taxi in trial collided with a truck in a designated test area and caused minor vehicle damage. The trial was halted for a period afterward until an investigation found that the collision was caused by a software problem on lane changing.} the accident appeared having little impacts on the policy direction and public acceptance towards AVEH. Currently, Singapore is on track to pilot deploying 40-seat automatic buses and shuttle services in three districts in 2022.
• While Singapore is proactive in AV trials and deployment, the legal liability issues clouding AVEH have yet to be addressed. To fill the gap, its Law Reform Committee has produced a series of studies on the legal implications of applying AVEH and artificial intelligence, and has recommended devising a mechanism of its own.^{21Legend symbol denoting See Law Reform Committee, Singapore Academy of Law (2020).} The preparation for AVEH deployment has also been extended to planning for mitigating the social impacts of AVEH in the long run. It is expected that some of the existing 120 000 strong transport workforce, in particular taxi and bus drivers, would face an uncertain job future. In view of this, LTA has introduced a new skill framework known as Industry Transformation Map, aiming to up-skill or re-skill the transport workers to assume job roles requiring higher skills. LTA also plans to create at least 8 000 high skill jobs in the transport sector by 2030.

Concluding remarks

• Development of AVEH is an emerging trend around the globe. Although wide application of AVEH may still be distant, many jurisdictions have begun making strategic moves to facilitate AVEH testing, development and deployment in view of the potential benefits. While Hong Kong's AVEH policy is still in infant stage, some AVEH trials have been undertaken in restricted areas with movement permits. To further facilitate the development, the Government plans to introduce a regulatory sandbox for AVEH trials.
• In Singapore, such a regulatory sandbox approach provides a clearer and AVEH specific legal framework that has exempted AVEH from meeting conventional vehicle rules and conferred LTA power to create flexible rules for individual trials. This approach aims to ensure that AVEH meets the safety requirement without stifling innovation. Singapore has also set up a dedicated off road AVEH testing venue to help AVEH adapt to the unique Singapore environments before the AVEH can be deployed. It has also opened up extensive public road networks for AVEH already tested in the venue. However, the issue of liability, cyber security and privacy risks are still being addressed.

Prepared by CHEUNG Chi-fai
Research Office
Information Services Division
Legislative Council Secretariat
12 January 2021