The future of downtown transportation is getting a $25 million boost. The Chattanooga Area Regional Transportation Authority (CARTA) was awarded a competitive US Department of Transportation grant to launch an autonomous vehicle (AV) shuttle service downtown — the largest competitive grant in the local agency's history.

What’s coming

The grant will fund:

Up to six AV shuttles
An AV Command Center + Live-Learning Lab
Expanded smart infrastructure to support the shuttles

The AV shuttles will replace CARTA's existing downtown shuttle fleet, not its fixed-route buses, and rides are expected to remain free. The service will be funded through parking revenue from CARTA's garages and lots.

A sleek, futuristic building stands prominently with a bus parked in front, showcasing modern architecture. — The passenger area, Live-Learning Lab, and AV Command Center will be on the first floor of Shuttle Park South. | Rendering provided by CARTA

How will the AV shuttles work?

The AVs will communicate with Chattanooga’s existing smart infrastructure, including traffic signals and pedestrian crosswalks. The grant will expand that infrastructure, though specific routes and additional investments haven’t been determined yet.

“The vehicle itself is going to be communicating with intersections, with traffic signals, with pedestrian crosswalks, and all of the LIDAR technology that's going on,” said CARTA CEO Charles D. Frazier. “And so it really makes it a very safe environment.”

UTC is getting involved

The University of Tennessee at Chattanooga will help develop the Live-Learning Lab at Shuttle Park South, creating academic tracks for careers including AV maintenance technician, command center technician, and onboard safety operator. The programs will target high school and college students.

“The Live-Learning Lab gives us the opportunity to turn Chattanooga itself into a classroom, a place where students and workers can learn alongside the technology,” Frazier said. “We’re not just bringing the future of transportation to Chattanooga — we’re preparing Chattanoogans to lead it.”

UTC will also develop technology for the shuttles and command center, while a third-party company will handle the initial technology installation.

A group of individuals inside a vehicle, engaged in a live learning lab session, sharing ideas and collaborating. — The idea is for people to learn in an operational environment. | Rendering provided by CARTA

What’s the timeline?

CARTA says the rollout will happen in phases, starting with a few vehicles. The agency hopes to have the shuttles on the road in about two years, and renovations at Shuttle Park South are expected to begin within the next 18 months.

Psst — if the idea of a driverless shuttle makes you a little nervous, same. But Frazier said the AVs will have an onboard safety operator for several years, ready to take over if needed. He compared it to the early days of elevators, when an operator rode along to get you where you needed to go.