The Mercury News

State supply chain needs autonomous trucks jump-start

- By Peter Leroe-Munoz and Ariel Wolf Peter Leroe-Muñoz is the Silicon Valley Leadership Group general counsel and senior vice president of technology and innovation. Ariel Wolf is counsel for the California Alliance for Freight Innovation.

The supply chain crisis is part of daily life for California's consumers and businesses. In the Bay Area, prices increased 1.5% this spring — and 5% over the past year. Customers know to expect a long delay on purchases, and restaurant­s are reworking menus to accommodat­e rising food prices (up 10% from last year). With diesel averaging $6.51 per gallon, fuel costs are being passed along to the consumer in surcharges and higher prices.

There are a lot of reasons for today's inflation and supply chain dilemmas, but one stands out: The number of truck drivers can't keep up with demand. And it's expected to get even worse. As Gov. Gavin Newsom and California lawmakers consider all opportunit­ies to keep the supply chain running and get prices down, it's time for the Golden

State to support autonomous trucks as a medium-term solution for a long-term problem. First and foremost, the Newsom administra­tion should initiate the Department of Motor Vehicles rulemaking to allow autonomous trucks to test and deploy.

The truck driver shortage was a problem long before the pandemic. The American Trucking Associatio­n estimates the country is short 80,000 drivers, and this shortage is expected to double to 160,000 by 2030. The industry also faces extremely high turnover rates. For both new entrants and those considerin­g retirement, the burden of long, stressful hours spent away from their families outweighs the allure of a decent-paying long-haul job. Truck drivers face higher-than-average rates of obesity, smoking, high blood pressure and diabetes.

Autonomous trucks are poised to be active partners with drivers, backfillin­g the need for long-haul drivers while fostering short-haul jobs that alleviate the heavy physical and mental tolls of long-haul driving. A new study found that autonomous trucks can contribute at least $6.5 billion to California's economy, while adding approximat­ely 2,400 jobs, increasing output without necessitat­ing mass layoffs of the state's truck drivers. Many companies already are based in the Golden State. California's talent is building the innovation­s of the future while supporting their local economies in areas such as the Bay Area, Los Angeles and San Diego.

Autonomous trucking already has created thousands of highpaying jobs in neighborin­g states — vehicle operators, maintenanc­e workers, technician­s, engineers and more — and the sector's growth will require more hires. The successful partnershi­p of human-driven and autonomous trucks was confirmed by a study from the Department of Transporta­tion projecting the technology will create up to 35,100 jobs per year, raise wages for all workers and spur $111 billion in investment.

This technology also presents an array of environmen­tal benefits. Autonomous trucks can stay away from crowded urban areas during rush hour and reduce congestion, because they're not limited to a human driver's schedule. With optimized driving, they can reduce fuel consumptio­n by at least 10%. By never getting distracted or needing to stop for rest, autonomous trucks can cut days off cross-country long-haul trips. Removing these limitation­s from the industry can keep supply chains at peak efficiency, which means on-time deliveries for groceries, goods on shelves, critical medical supplies plus more happy customers across the state.

Unfortunat­ely, until a rulemaking is enacted in California, none of these benefits or efficienci­es can arrive. In 2012, the Legislatur­e directed the California

DMV to create rules for autonomous vehicles. Yet a decade later, autonomous trucks are still explicitly prohibited from testing in the state. The Newsom administra­tion should act now to start the rulemaking and adopt regulation­s allowing for the testing and deployment of autonomous trucks.

Truck drivers are working hard, but the shortage is simply unsustaina­ble. Already frustrated with rising prices and product shortages, California cannot afford to rely solely on stopgap, short-term measures to reinforce our supply chain in the long term. The Golden State needs to move forward on autonomous trucks so goods can keep moving.

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