Unless Congress reaches an agreement to keep the lights on, the U.S. government appears headed for a shutdown at midnight on October 1. As the deadline looms, stakeholders should not let the legislative jockeying overshadow another consequence of a funding lapse: regulatory delay. Under normal circumstances, federal agencies publish thousands of rules per year, covering agriculture, health care, transportation, financial services, and a host of other issues. In a shutdown, however, most agency proceedings to develop and issue these regulations would grind to a halt, and a prolonged funding gap would lead to uncertainty for stakeholders, particularly as the 2024 elections approach. Another consequence is that more regulations could become vulnerable to congressional disapproval under the Congressional Review Act (CRA).Continue Reading Looming Shutdown Elevates Congressional Review Act Threat for New Regulations
Regulation
AI Update: NIST Releases its Plan to Develop AI Standards
On August 9, 2019, the U.S. Department of Commerce’s National Institute of Standards and Technology (“NIST”) submitted its plan for federal engagement in the development of artificial intelligence standards. The plan was developed in response to the Executive Order signed by President Trump earlier this year, which required NIST to “issue a plan for Federal engagement in the development of technical standards and related tools in support of reliable, robust, and trustworthy systems that use AI technologies.” The final plan incorporates comments from over 40 organizations that commented on a draft released in July.
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ICO opens beta phase of privacy “regulatory sandbox”
On 29 March 2019, the ICO opened the beta phase of the “regulatory sandbox” scheme (the “Sandbox”), which is a new service designed to support organizations that are developing innovative and beneficial projects that use personal data. The application process for participating in the Sandbox is now open, and applications must be submitted to the ICO by noon on Friday 24 May 2019. The ICO has published on its website a Guide to the Sandbox, which explains the scheme in detail.
The purpose of the Sandbox is to support organizations that are developing innovative products and services using personal data and develop a shared understanding of what compliance looks like in particular innovative areas. Organizations participating in the Sandbox are likely to benefit from having the opportunity to liaise directly with the regulator on innovative projects with complex data protection issues. The Sandbox will also be an opportunity for market leaders in innovative technologies to influence the ICO’s approach to certain use cases with challenging aspects of data protection compliance or where there is uncertainty about what compliance looks like.
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IoT Update: Covington Hosts First Webinar on Connected and Automated Vehicles
On February 27, 2019, Covington hosted its first webinar in a series on connected and automated vehicles (“CAVs”). During the webinar, which is available here, Covington’s regulatory and public policy experts covered the current state of play in U.S. law and regulations relating to CAVs. In particular, Covington’s experts focused on relevant developments in: (1) federal public policy; (2) federal regulatory agencies; (3) state public policy; (4) autonomous aviation; and (5) national security.
Highlights from each of these areas are presented below.Continue Reading IoT Update: Covington Hosts First Webinar on Connected and Automated Vehicles

Covington AI/IoT Update: EPA and NHTSA Seek Comment on Autonomous and Connected Vehicles
On Friday August 24, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) published a proposed rule in the Federal Register: The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks (“Proposed Rule”). 83 Fed. Reg. 42817.
The long-anticipated rulemaking has garnered media attention for its proposed measures to indefinitely freeze fuel economy and greenhouse gas emissions standards, and to strip California’s long-held authority under the Clean Air Act to set its own tailpipe emissions rules. EPA’s decision to reconsider its own determination that the previous standards were appropriate as set through the year 2025 has been challenged in court by eighteen states, private parties, and environmental NGOs.
But another set of stakeholders may be interested in the rule: autonomous and connected vehicles manufacturers and parts suppliers.Continue Reading Covington AI/IoT Update: EPA and NHTSA Seek Comment on Autonomous and Connected Vehicles
AI Update: European Commission Publishes Communication on Artificial Intelligence for Europe
On April 25, 2018, the European Commission (EC) published its “Artificial Intelligence for Europe” communication (the Communication), in which it sets out a roadmap for its AI initiatives. Having acknowledged the crucial need for a boost of AI in the EU, the EC commits to supporting investment, (re)considering legislation and soft law initiatives, and coordinating Member States’ efforts. This blog post highlights some of the EC’s initiatives.
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AI Update: House of Lords Select Committee publishes report on the future of AI in the UK
Reflecting evidence from 280 witnesses from the government, academia and industry, and nine months of investigation, the UK House of Lords Select Committee on Artificial Intelligence published its report “AI in the UK: ready, willing and able?” on April 16, 2018 (the Report). The Report considers the future of AI in the UK, from perceived opportunities to risks and challenges. In addition to scoping the legal and regulatory landscape, the Report considers the role of AI in a social and economic context, and proposes a set of ethical guidelines. This blog post sets out those ethical guidelines and summarises some of the key features of the Report.
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UK House of Lords Inquiry on ‘The Regulation of the Internet’
The UK House of Lords Select Committee on Communications has recently opened a Public Consultation on ‘The Regulation of the Internet’, with submissions being accepted until Friday 11 May. The Call for Evidence can be accessed here.
The nine questions posed are relatively broad in scope, including: whether there is a need to introduce…
Continue Reading UK House of Lords Inquiry on ‘The Regulation of the Internet’