by Alain L. Kornhauser, PhD Professor, Operations Research & Financial Engineering Director, Program in Transportation Faculty Chair, PAVE (P Autonomous Vehicle Engineering Princeton University Presented at Working Meeting May 20, 2015 Consortium for Automated Vehicle Fort Monmouth

Quality of Life 101: Important Elements Environment – Clean air, water, … Employment – “High Quality” Jobs – Correlated with Crime/Personal Safety Mobility – Personal Desire with Societal Oversight Priorities: Safety, Efficiency, Equity, Comfort, Convenience, …

Founding Premise Automated Vehicle Technology can evolve such that: – If added to a single vehicle, – The probabilities that this vehicle will be involved in various types of accidents are substantially reduced. Overall the expected Liability Cost Savings ($ L ) attributed to those avoided accidents > Installed Cost ($ C ) of that Technology

Founding Premise If ($ L ) > ($ C ) of that Technology Then there is an enormous Business Case for the adoption of that technology by that vehicle and every other vehicle. The technology more than pays for itself from the savings that it delivers. PLUS: The created “High Quality” Jobs, Improved Personal Safety Avoided Personal Disruptions Improved the Environment, and Arguably Improved: Efficiency, Equity, Comfort, Convenience, … All Come for FREE!

Fundamental Focus of the NJ Center for Fort Monmouth: 1.Advancing AV Technologies that ($ L ) > ($ C ) – Facilitating Fundamental R&D on enabling sensor and control technologies, and Vehicle driver/rider WWW Vehicle… interface elements 2.Quantifying the Expected Accident Probability implications of those AV Technologies. – To enable positive insurance and risk mitigation interests to propel adoption that also greatly benefits 3.Testing and Certification of those AV Technologies 4.Support Technically the Public Oversight/Regulation of those AV Technologies 5.Support Technically the Commercialization of those AV Technologies

Assets We Have: 1.Enabling State Legislation S-734 passed NJ Senate 35-0 Assembly bill waiting to move. We can help.

Assets We Have: 1.Enabling State Legislation S-734 passed NJ Senate 35-0 Assembly bill waiting to move. We can help. 2.Option on Facilities McAffee Center 25 acre Campus 100,000 ft 2 office 2 large 1 st class garages Eastern Gated Test Site 80 acres Existing streets and buildings Limited use of Fort’s exiting roadways

Vehicle Bays McAfee Office Building ~ 100,000 sf Support Buildings Princeton University Center for Research of SmartDrivingCars (CRS) at Fort Monmouth McAfee Complex 1250’ x 865’ ~ 25.8 acres Princeton University Center for Research of SmartDrivingCars (CRS) at Fort Monmouth McAfee Complex 1250’ x 865’ ~ 25.8 acres

Princeton University Center for Research of SmartDrivingCars (CRS) at Fort Monmouth Exclusive Use Roadways Area ~ 60 acres Princeton University Center for Research of SmartDrivingCars (CRS) at Fort Monmouth Exclusive Use Roadways Area ~ 60 acres Vehicle Bays McAfee Office Building ~ 100,000 sf Support Buildings

Princeton University Center for Research of SmartDrivingCars (CRS) at Fort Monmouth Mixed Use Roadways ½ The Fort ~ 1 sq. mile Princeton University Center for Research of SmartDrivingCars (CRS) at Fort Monmouth Mixed Use Roadways ½ The Fort ~ 1 sq. mile Exclusive Use Roadways

Assets We Have: 1.Enabling State Legislation S-734 passed NJ Senate 35-0 Assembly bill waiting to move. We can help. 2.Option on Facilities McAffee Center Eastern Gated Test Site Limited use of Fort’s exiting roadways 3.Many interested entities Universities: Princeton, UTRC2, U Md, Monmouth, NJIT Insurance: Munich Re, WSTIP, ICNJ, NJM, Technology Co: Siemens, MobilEye, Rosco, Soterea, Lam Cloud Foundations & Corporations: DCH Autogroup, Teen Safety Foundation, Comcast, Verizon, Public & non-Profits: NJ Transit, GCTC, APTA, ATRA, Consultants: HNTB, EPS, Public Sector: NJ DoT, MVC, PANYNJ, NJTPA, L&PS

Organizational Stucture: Example: Insurance Institute for Highway Safety Mission Statement The Insurance institute for highway safety is an independent, nonprofit, scientific and educational organization it identifies and evaluates ways to reduce the human and economic losses resulting from motor vehicle crashes and communicates the results of that research to the public, federal, state, and local highway and vehicle safety officials, vehicle manufacturers, insurers, the media, the research community and others (IIHS) The NJ center for automated Ft. Monmouth is an independent, nonprofit, scientific and educational organization. It advances and evaluates automated vehicle technologies to reduce motor vehicle crashes and communicates the results of that research to the public, federal, state, and local highway and vehicle safety officials, vehicle manufacturers, insurers, the media, the research community and others (NJ

Organizational Stucture: Example: Insurance Institute for Highway Safety Impact Statement Research projects undertaken identify and evaluate methods of reducing the personal injuries and property damage resulting from the use of motor vehicles (IIHS) Research projects undertaken: Advancing AV Technologies that ($L) > ($C) Facilitating Fundamental R&D on enabling sensor and control technologies, and Vehicle driver/rider WWW Vehicle… interface elements Quantify the Expected Accident Probability implications of those AV Technologies. Test and Certify those AV Technologies Support Technically the Public Oversight/Regulation of those AV Technologies, and Support Technically the Commercialization of those AV Technologies (NJ

Business Plan/Membership Stucture: Example: Insurance Institute for Highway Safety : 501 C6 Membership: ~ 100 Members (Munich Re, USAA, Progressive, GEICO, … Not: WTSIP) & 3 “Funding Associations (American Insurance Association, National Association of Mutual Insurance Companies, Property Casualty Insurers Association of America )American Insurance AssociationNational Association of Mutual Insurance Companies Property Casualty Insurers Association of America

Business Plan/Membership Stucture: Create a 501 c6 (Mon-profit Trade Association) Tax exempt Contributions not tax deductible Companies write-off contributions as business expense Revenue can not be funneled to a single partner/member Can participate in joint project with members as long as sponsoring entity funds Center and Member separately Proposed Membership levels For Founding/Charter Members Supporting Members Affiliated Members Public Agency & Non-Profit Members University Members Associate Members

Business Plan/IPO (Initial Private Offering): All have an OPTION to Join at Chosen Level OPTION expires on April 1. LevelBoard compositionAnnual commitment pledged for four years Founding/Charter Members 1 per member, senior board positions $250,000/yr Supporting Members 0.3 per member Junior board positions $100,000./yr Public Agency & Non-Profit 0.25 per member Junior board positions Contract authority University Members 0.2 per member$5,000/yr Associate MemberNo board representation $25,000/yr

Center Membership (Revenue $ in thousands) Founding/ Charter Supporting Collaborator Associate CollaboratorSum Revenue ($)Note Founder's Fee (one-time) $ 250 $ 100 $ 25 Annual Contribution $ 250 $ 100 $ 25 Founding Members $ 1,875 EoY 1 Members $ 2,375 EoY 2 Members $ 3,000 Steady-state Members $ 4,000 FTE/member EoY FTE/member EoY FTE/member Steady-state Office Space (sf) EoY 1 1,800 1, , sf/FTE Office Space (sf) EoY 2 3,150 3, , sf/FTE Office Space (sf) S-S 15,000 9, , sf/FTE Garage Space (# bays) EoY Garage Space (# bays) EoY Garage Space (# bays) S-S Center Management (Expense$ in thousands) Numbers Expenditure ($)Note Founding Staff 2 EoY 1 Staff 4 EoY 2 Staff 5 Steady-state Staff 7 Office Space (sf) Start 300 $ $20/sf Office Space (sf) EoY 1 600$ $20/sf Office Space (sf) EoY 2 750$ $20/sf Office Space (sf) S-S 1,050$ $20/sf Salary*2.5 ($) Start$ 625 $125 Overhead ($) EoY 1 $ 1,300 $130 Overhead ($) EoY 2 $ 1,688 $135 Overhead ($) S-S $ 2,450 $140 Research ($) EoY 1 $ 1,150 Revenue$- Office$-Salary$ Research ($) EoY 2 $ 950 Revenue$- Office$-Salary$ Research ($) S- S $ 1,263 Revenue$- Office$-Salary$ Budget

Value to Your Organization: Contributions from around the room Value to Your Organization: Contributions from around the room

Modal Dimension Sector Dimension CommercializationCertificationResearch Transit Cars Trucks Center’s Activity Matrix Overall Traditional Focus: Automated Collision Avoidance Overall Traditional Focus: Automated Collision Avoidance

Modal Dimension Sector Dimension CommercializationCertificationResearch Transit Cars Trucks Center’s Activity Matrix Market Focus: Automated Collision Avoidance Market Focus: Automated Collision Avoidance Individual Consumers Fleets

Initial Project Focus: Modal Dimension Sector Dimension Commercialization Certification Research Transit Cars Trucks Center’s Activity Matrix Individual Consumers Fleets

Vote: Keep going or punt? If we aren’t punting: – Form an interim board of volunteers – Create 501 c6 – Draft bylaws – Draft a Strategic Plan April 1 – See who has exercised their option – If sufficient have Hire skeleton staff Finalize deal with FMERA for facilities Create on-going board Finalize strategic and tactical plan Next Steps

Thank You Discussion!