Draft - Smart Transportation - for discussion only (not final and subject to change)

Recommendation 6: The federal government should promote the development and 

adoption of policies, procedures and funding methods that can accelerate the adoption 

of smart, connected, and electrified transportation technologies. Many of these 

technologies incorporate the use of IoT.

Description:

The federal government should promote the development and adoption of policies, procedures 

and funding methods that can accelerate the adoption of connected and electrified 

transportation technologies. Many of these transportation technologies incorporate the use of 

IoT. It is particularly challenging for small businesses and startup companies in this sector that 

have to provide upfront capital before hopefully being selected as a result of an RFP. The

process for these projects can also take many years to bring them from proposal to commercial 

operation. 

In addition, local governments and jurisdictions are often cash strapped, and underfunded, 

making it hard to determine where the budgets are coming from to pay for these projects.

Federal funding mechanisms can serve to spur additional private sector investment. 

Justification:

Greater adoption of smart, connected, and electrified transportation technologies could help in 

the following examples: 

• Incorporation of technologies enabled by IoT: Opportunities for IoT technologies in 

smart, connected transportation include sensors, cameras, and edge computing devices 

that can improve safety in things such as vulnerable road users (i.e., pedestrians at 

crosswalks), traffic intersections, school and work zones. Opportunities for IoT

technologies in electrified transportation include in car systems or mobile apps that can 

locate charging stations, as well sensors that manage charging stations to gather data 

about usage and performance, to anticipate maintenance needs, and troubleshoot 

problems.

• Improving overall traffic safety: Vehicles that have technologies such as Cellular Vehicle 

to Everything (C-V2X) can communicate basic safety messages and information to 

corresponding infrastructure and other road users thereby reducing traffic and 

pedestrian fatalities.

• Reduction in greenhouse gas emissions: The transportation sector generates the largest 

share of greenhouse gas emissions a big contributor to climate change. Electrification of 

transportation away from traditional fossil fuels are a viable option for transportation. 

Also smart, connected transportation can improve traffic flow and reduce congestion 

which is also better for the environment. 
Draft - Smart Transportation - for discussion only (not final and subject to change)

Implementation considerations:

• With the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) the 

Federal Government is already taking steps to electrify the transportation sector. Funds are 

being directed to the states to deploy electric vehicle charging stations via the NEVI Formula 

Program (https://afdc.energy.gov/laws/12744). Under the IRA tax credits are available for 

EVs that are primarily assembled in North America. Its important that this legislation stays in 

effect throughout its designated time period. 

• The Federal Government could set aside easily and readily tappable funding pools yearround for innovation and next-generation technologies. Grants could be set aside for 

categories that the government deems high importance.

• The Federal Government should set aside fast-track programs for startups and small 

companies to deploy this technology in pilots.

• The Federal Government should set up a system to make it easier for startups and small 

companies to find relevant funding sources like grants and SBIR awards.

• The Federal Government should encourage local governments to leverage its local startup 

accelerator network to develop technology and fast-track it to local adoption on successes. 

Potential implementation barriers:

● Time and Cost: The time and cost for this transformation could be considerable and 

small companies or startups may lose interest and cancel a project. 

● Education: There is an overarching need to educate local governments and consumers 

on these new types of technologies which could be hard and time consuming.

● Supply Chain: The manufacturing industry recognizes the goal from the Administration 

of Buy America, Build America (BABA) however, there are current constraints meeting 

domestic content requirements and there needs to be an appropriate ramp-up, phase in 

period to get to full production. 

Possible participating agencies

● DOE/DOT Joint Office, DOT, DOE,