Business
San Francisco’s fire chief is fed up with robotaxis that mess with her firetrucks. And L.A. is next
Robotaxis keep tangling with firefighters on the streets of San Francisco, and the fire chief is fed up.
“They’re not ready for prime time,” Chief Jeanine Nicholson said.
Nicholson is talking about the driverless taxis from Waymo and Cruise that are picking up passengers and dropping them off in designated sections of the city. Now those companies want to rapidly expand service throughout the entire city, in unlimited numbers, in any kind of weather, day or night. And state regulators appear ready to approve their request.
City leaders are worried — not only in San Francisco, but in Los Angeles and Santa Monica, too, where Waymo and another robotaxi company, Motional, say they’re ready to deploy their AI-operated robotaxi service as soon as state regulators flash the green light.
The robotaxi industry is being allowed to move too fast and break things, these officials say, putting more robotaxis on public streets even as they prove inept at dealing with firetrucks, ambulances and police cars. And, they say, California state agencies have set up the rules so cities have little say in autonomous vehicle regulation.
“I’m not against the technology. I understand it’s important and it’s the way the industry is going,” Nicholson said. “But we need to fix what’s not working right now, before they are unleashed on the rest of the city.”
State regulators track robotaxi collisions, but they don’t track data on traffic flow issues, such as street blockages or interference with firetrucks.
But the Fire Department does. Since Jan. 1, the Fire Department has logged at least 39 robotaxi incident reports.
Although, as the driverless industry notes, robot cars don’t get tired, don’t drive drunk or high, and aren’t distracted by their iPhones, they do often stop dead in traffic for no apparent reason. Sometimes these robo-roadblocks are brief, but sometimes the road obstructions last long enough to require a robotaxi company employee to travel to the scene and move the car out of the way.
The Fire Department incidents include reports of robotaxis:
- Running through yellow emergency tape and ignoring warning signs to enter a street strewn with storm-damaged electrical wires, then driving past emergency vehicles with some of those wires snarled around rooftop lidar sensors.
- Twice blocking firehouse driveways, requiring another firehouse to dispatch an ambulance to a medical emergency.
- Sitting motionless on a one-way street and forcing a firetruck to back up and take another route to a blazing building.
- Pulling up behind a firetruck that was flashing its emergency lights and parking there, interfering with firefighters unloading ladders.
- Entering an active fire scene, then parking with one of its tires on top of a fire hose.
After a mass shooting June 9 that wounded nine people, a robotaxi blocked a lane in front of emergency responders in the city’s Mission District. Another lane was open, but in a news release, the Fire Department said on a narrower street, the blockage could have been “catastrophic.”
To deal with a troublesome robotaxi, firefighters attempt to communicate with a remote robotaxi operator, who sometimes can move the car out of the way.
If that proves impossible, the robotaxi company must dispatch a human to the scene. In one case, a firefighter had to smash through a window to coax a robotaxi to move out of the way.
‘Dealing with life and death’
The fire chief said each robotaxi company offers training to help deal with “bricked” vehicles.
“We have 160,000 calls a year. We don’t have the time to personally take care of a car that’s in the way when we’re on the way to an emergency,” she said.
Hannah Lindow, spokesperson for Cruise, said the company is “proud of our publicly reported safety record which includes driving millions of miles in an extremely complex urban environment. Interacting properly with emergency personnel is important to us, which is why we maintain an open line of communication with first responders to receive feedback and discuss specific incidents to improve our response.”
Waymo issued a prepared statement: “Safety is at the heart of our mission and we have consistently shared more detail than any other [autonomous vehicle] company regarding our methodologies and insights into our performance. We believe this transparency benefits our riders — who are enjoying a safe, accessible, and delightful mobility option tens of thousands of times per week — and encourages a richer conversation about safety in the industry.”
Nicholson acknowledged that no one has yet been killed or injured due to robotaxi misbehavior. “But I don’t want something bad to happen because we can’t get to a scene. A fire can double in size in a minute. We are dealing with life and death, and I’m not being dramatic in saying that.”
The robotaxi industry in California comes under the jurisdiction of two state agencies — the Department of Motor Vehicles, which issues permits and is responsible for safety, and the California Public Utilities Commission, which regulates commercial passenger service, including buses, taxis and limousines.
The utilities commission is set to vote on robotaxi expansion June 29. The resolutions it will vote on make clear that, under the agency’s own rules, issues such as traffic flow and interference with emergency workers can’t be used to deny expansion permits. The resolutions list four “goals” to be considered: inclusion of people with disabilities; improved transportation options for the disadvantaged; reduction of greenhouse gases; and passenger safety.
Critics note that although the commission concerns itself with the safety of robotaxi passengers, it defers other safety issues to the DMV. The DMV collects data on collisions and has the power to suspend permits, but so far has taken no action or made any statements about robotaxi interference with firefighters.
The DMV declined to make its director, Steve Gordon, available for an interview, but issued a statement suggesting that its 4-year-old rules might be open to amendment at some point: “The DMV developed its autonomous vehicle regulations using a public process whereby stakeholders (e.g., local, state, federal government agencies, academia, interest groups, industry representatives) provided input in the development. Comments provided during this process were considered and addressed as part of the rulemaking in the Final Statement of Reasons. The DMV implemented the first set of regulations in 2014, the second in 2018 and the third in 2019. Any future regulations will use a similar process where members of the public and other stakeholders will be invited to participate and provide comments.”
Robotaxi regulation issues go beyond robotaxi expansion: The entire way in which California regulates autonomous technology is being questioned.
The DMV has come under fire in the state Assembly, which passed a bill in May that would take away some of the agency’s power to regulate driverless big-rig trucks. Several legislators said they voted in favor of it in part because they believe the DMV has done a poor job of regulating driverless cars.
Safety data censored
In 2021, the DMV joined with Waymo on a court-approved deal to allow driverless car companies to censor not only trade secrets but basic information on safety performance, including most details of collision reports as well as information on how the company handles driverless car emergencies.
The industry is tight with the information it releases to the public about its operations on public roads.
Waymo won’t say how many cars it runs in San Francisco. Cruise said it operates 150 to 300 cars but won’t be more precise. Neither company will say how large its fleet will grow, or how quickly. Neither Waymo nor Motional will say how many robotaxis they’re testing in Santa Monica and L.A.
City officials in San Francisco, a notoriously fractious bunch, are united in opposing the expansion plan, from Mayor London Breed on down, until traffic flow, emergency scene problems and better communications between the companies and the city are worked out.
“Usually the mayor is on the side of corporations and the supervisors are on the other side,” said Board of Supervisors member Aaron Peskin. “We’re saying, don’t give them everything they want until these things are proven. Don’t make us the guinea pigs.”
The fire chief wonders why the ability to deal with emergency scenes was not made a high priority.
“If they can do all this stuff with AI, I’m sure they can figure this stuff out,” Nicholson said.
The utilities commission has gathered expressions of support from dozens of groups that include business organizations, such as the Silicon Valley Leadership Group, and advocates for the disabled, such as the American Council for the Blind. The former argue that robotaxi development is essential to keep California at the forefront of innovation, the latter make the case that easy and equitable transportation for all people is a social good that will benefit everyone. No one on any side of the debate has disagreed with either assertion.
But agencies including the Los Angeles Department of Transportation and the city of Santa Monica have filed comments with the commission arguing that robotaxi service should be rolled out incrementally as problems are identified and addressed. Both also called for far more data transparency on robotaxi safety issues.
The industry countered with filings opposing any kind of incremental rollout.
What’s the rush? Robotaxi companies have spent enormous sums developing expensive artificial intelligence technology and want a return on investment.
Cruise, owned by General Motors, has deep pockets. Waymo, owned by Google’s Alphabet, deeper still. But the pressure’s on. In October, Ford and Volkswagen shut down Argo, their robotaxi joint venture, after concluding they’d see better returns investing that money in electric cars and driver-assistance and safety systems.
The utilities commission’s robotaxi expansion measure is slated to be considered as part of a June 29 “consent agenda” package that will gather 50 orders and resolutions on a wide variety of issues, to be passed or rejected by a single vote by the agency’s five commissioners. One of those commissioners, lawyer John Reynolds, was appointed by Gov. Gavin Newsom in 2021. At the time, he served as general counsel for Cruise.
Business
On TikTok, Users Thumb Their Noses at Looming Ban
Over the last week, the videos started appearing on TikTok from users across the United States.
They all made fun of the same thing: how the app’s ties to China made it a national security threat. Many implied that their TikTok accounts had each been assigned an agent of the Chinese government to spy on them through the app — and that the users would miss their personal spies.
“May we meet again in another life,” one user wrote in a video goodbye set to Whitney Houston’s cover of Dolly Parton’s “I Will Always Love You.” The video included an A.I.-generated image of a Chinese military officer.
The videos were just one way that some of TikTok’s 170 million monthly U.S. users were reacting as they prepared for the app to disappear from the country as soon as Sunday.
The Supreme Court is set to rule on a federal law that required TikTok’s Chinese owner, ByteDance, to sell the app by Jan. 19 or face a ban in the United States. U.S. officials have said China could use TikTok to harvest Americans’ private data and spread covert disinformation. TikTok, which has said a sale is impossible and challenged the law, is now awaiting the Supreme Court’s response.
The possibility that the justices will uphold the law has set off a palpable sense of grief and dark humor across the app. Some users have posted videos suggesting ways to circumvent a ban with technological workarounds. Others have downloaded another Chinese app, Xiaohongshu, also known as “Red Note,” to thumb their noses at the U.S. government’s concerns about TikTok’s ties to China.
The videos highlight the collision taking place online between the law, which Congress passed with wide support last year, and everyday users of TikTok, who are dismayed that the app may soon disappear.
“Much of my TikTok feed now is TikTokers ridiculing the U.S. government, TikTokers thanking their Chinese spy as a form of ridicule,” said Anupam Chander, a professor of law and technology at Georgetown University and an expert on the global regulation of new technologies. “TikTokers recognize that they are not likely to be manipulated by anyone. They are actually quite sophisticated about the information they’re receiving.”
TikTok declined to comment on the users’ references to its ties to China.
Some users are not willing to give up the app — or their supposed spies — so easily.
Hundreds of TikTok videos over the last week have cataloged how teenagers could keep using the app in the United States, according to a review by The New York Times. One of the most popular methods described is the use of a VPN, or a virtual private network, which can mask a user’s location and make it appear that the person is elsewhere.
“They can’t actually ban TikTok in the U.S. because VPNs are not banned,” Sasha Casey, a TikTok user, said in a recent video that was liked over 60,000 times. “Use a VPN. And send a picture to Congress while you do it, because that’s what I’ll be doing.”
While VPNs can make it appear that a phone, a laptop or another electronic device is in a remote location, it is not clear if the technology can circumvent the ban. A device’s real location is stored in many places, including in the app store that was used to download TikTok.
TikTok fans also seem to be behind the sudden surge in popularity for Xiaohongshu, the most downloaded free app on Tuesday and Wednesday in the U.S. Apple Store. Hundreds of millions of people in China use the app, which, like TikTok, features short videos and text-based posts. Xiaohongshu means “little red book” in Mandarin.
Mr. Chander anticipates that the Supreme Court will uphold the ban law this week, though he believes that TikTok has the winning case. He said the downloads of Red Note and the Chinese spy memes showed that many Americans did not agree with their government’s security concerns, particularly at the expense of free speech.
“When the United States shutters a massive free expression service, which our democratic allies have not shuttered, it will make us the censor and put us in the unusual position of silencing expression,” Mr. Chander said. “It will make Americans who use TikTok really distrustful of the U.S. government as carrying their best interests.”
Business
Edison stock turns volatile as growing blame for wildfires lands on the power company
Southern California’s catastrophic fires have rocked the stock of Edison International, the parent company of Southern California Edison, as accusations and lawsuits about the utility’s potential role in starting the fires mount.
Shares of Edison International closed up 5% at $61.30 on Wednesday after plunging 23% this month, making it one of the worst performers on the Standard & Poor’s 500. The rebound came after Ladenburg Thalmann analysts upgraded their rating of the stock to neutral from sell, saying that their target price of $56.50 a share reflected worst-case outcomes associated with the current wildfires.
“At this time, it is too early to discern what the outcomes will be with respect to the impact of the fires on the California Wildfire Insurance Fund solvency and/or the future earnings of Edison International,” the analysts wrote, according to Barron’s. “An initial assessment of SCE’s role in the start of the fires will likely not occur until the summer of 2025 at the earliest.”
State lawmakers established the wildfire fund in the wake of wildfires several years ago after Wall Street investors lost confidence and ratings agencies threatened to downgrade California’s investor-owned utilities.
Market analyst Zacks downgraded Edison International stock from outperform to neutral after the fires started last week. Zacks predicted Edison’s operating revenue would increase during 2025 and 2026, while acknowledging that “the company has been incurring significant wildfire-related costs” and that “higher-than-expected decommissioning costs could materially impact the company’s operating results.”
RBC Capital Markets, another analyst, had a loftier view of Edison as recently as October when it called the utility “a high quality operator, with investor confidence around wildfire risk improving from best in class mitigation efforts.”
The fallout from the fires is an abrupt disruption for a company that had been surging in recent months. In its most recent quarterly report, the company posted a profit of $516 million, or $1.33 per share, compared with $155 million, or 40 cent per share, in the third quarter of last year.
“Our team has achieved remarkable success over the last several years managing unprecedented climate challenges, making our operations more resilient and positioning us strongly for the growth ahead,” President Pedro J. Pizarro said in the report.
Fire agencies are investigating whether downed Southern California Edison utility equipment played a role in igniting the 800-acre Hurst fire near Sylmar, company officials have acknowledged.
The company issued a report Friday saying that a downed conductor was discovered at a tower in the vicinity of the Hurst fire, but that it “does not know whether the damage observed occurred before or after the start of the fire.” The fire is nearly fully contained, according to the California Department of Forestry and Fire Protection.
SCE is also under scrutiny for possibly being involved in sparking the Eaton fire that has burned 14,000 acres and destroyed thousands of structures, wiping out whole swaths of Altadena, where at least 16 people died in the blaze.
On Tuesday the Newport Beach law firm of Bridgford, Gleason & Artinian filed a mass action complaint in Los Angeles Superior Court against SCE regarding the Eaton fire on behalf of victims including Jeremy Gursey, whose Altadena property was destroyed in the fire.
“Based upon our investigation, our discussions with various consultants, the public statements of SCE, and the video evidence of the fire’s origin, we believe that the Eaton Fire was ignited because of SCE’s failure to de-energize its overhead wires which traverse Eaton Canyon—despite a red flag PDS wind warning issued by the national weather service the day before the ignition of the fire,” lawyer Richard Bridgford said in a statement.
The firm said it has represented more than 10,000 California fire victims in past suits against Pacific Gas & Electric Co. and SCE. Bridgford told Yahoo Finance that his inbox is full of Southern California residents seeking to participate in the Eaton fire lawsuit and that he anticipates “there’ll be hundreds joining.”
The most extreme level of a red flag fire warning, a “particularly dangerous situation,” returned to parts of Los Angeles and Ventura counties Wednesday morning, heightening concerns about the potential for new fires.
“The danger has not yet passed,” Los Angeles Fire Department Chief Kristin Crowley said during a news conference Wednesday. “So please prioritize your safety.”
Business
Albania Gives Jared Kushner Hotel Project a Nod as Trump Returns
The government of Albania has given preliminary approval to a plan proposed by Jared Kushner, Donald J. Trump’s son-in-law, to build a $1.4 billion luxury hotel complex on a small abandoned military base off the coast of Albania.
The project is one of several involving Mr. Trump and his extended family that directly involve foreign government entities that will be moving ahead even while Mr. Trump will be in charge of foreign policy related to these same nations.
The approval by Albania’s Strategic Investment Committee — which is led by Prime Minister Edi Rama — gives Mr. Kushner and his business partners the right to move ahead with accelerated negotiations to build the luxury resort on a 111-acre section of the 2.2-square-mile island of Sazan that will be connected by ferry to the mainland.
Mr. Kushner and the Albanian government did not respond Wednesday to requests for comment. But when previously asked about this project, both have said that the evaluation is not being influenced by Mr. Kushner’s ties to Mr. Trump or any effort to try to seek favors from the U.S. government.
“The fact that such a renowned American entrepreneur shows his interest on investing in Albania makes us very proud and happy,” a spokesman for Mr. Rama said last year in a statement to The New York Times when asked about the projects.
Mr. Kushner’s Affinity Partners, a private equity company backed with about $4.6 billion in money mostly from Saudi Arabia and other Middle East sovereign wealth funds, is pursuing the Albania project along with Asher Abehsera, a real-estate executive that Mr. Kushner has previously teamed up with to build projects in Brooklyn, N.Y.
The Albanian government, according to an official document recently posted online, will now work with their American partners to clear the proposed hotel site of any potential buried munitions and to examine any other environmental or legal concerns that need to be resolved before the project can move ahead.
The document, dated Dec. 30, notes that the government “has the right to revoke the decision,” depending on the final project negotiations.
Mr. Kushner’s firm has said the plan is to build a five-star “eco-resort community” on the island by turning a “former military base into a vibrant international destination for hospitality and wellness.”
Ivanka Trump, Mr. Trump’s daughter, has said she is helping with the project as well. “We will execute on it,” she said about the project, during a podcast last year.
This project is just one of two major real-estate deals that Mr. Kushner is pursuing along with Mr. Abehsera that involve foreign governments.
Separately, the partnership received preliminary approval last year to build a luxury hotel complex in Belgrade, Serbia, in the former ministry of defense building, which has sat empty for decades after it was bombed by NATO in 1999 during a war there.
Serbia and Albania have foreign policy matters pending with the United States, as both countries seek continued U.S. support for their long-stalled efforts to join the European Union, and officials in Washington are trying to convince Serbia to tighten ties with the United States, instead of Russia.
Virginia Canter, who served as White House ethics lawyer during the Obama and Clinton administrations and also an ethics adviser to the International Monetary Fund, said even if there was no attempt to gain influence with Mr. Trump, any government deal involving his family creates that impression.
“It all looks like favoritism, like they are providing access to Kushner because they want to be on the good side of Trump,” Ms. Canter said, now with State Democracy Defenders Fund, a group that tracks federal government corruption and ethics issues.
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