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The Google driverless car is a project by Google that involves developing technology for robotic cars. The project is currently being led by Google engineer Sebastian Thrun, director of the Stanford Artificial Intelligence Laboratory and co-inventor of Google Street View. Thrun’s team at Stanford created the robotic vehicle Stanley which won the 2005 DARPA Grand Challenge and its US$2 million prize from the United States Department of Defense.[2] The team developing the system consisted of 15 engineers working for Google, including Chris Urmson, Mike Montemerlo, and Anthony Levandowski who had worked on the DARPA Grand and Urban Challenges.[3]
The U.S. state of Nevada passed a law on June 29, 2011 permitting the operation of autonomous cars in Nevada. Google had been lobbying for robotic car laws.[4][5][6] The Nevada law went into effect on March 1, 2012, and the Nevada Department of Motor Vehicles issued the first license for an autonomous car in May 2012. The license was issued to a Toyota Prius modified with Google’s experimental driverless technology.[7] As of April 2012, Florida became the second state to allow the testing of autonomous cars on public roads.[8] California became the third state to legalize the use of self-driven cars for testing purposes as of September 2012 when Governor Jerry Brown signed the bill into law at Google HQ in Mountain View.[9]
While Google had no immediate plans to commercially develop the system, the company hopes to develop a business which would market the system and the data behind it to automobile manufacturers. An attorney for the California Department of Motor Vehicles raised concerns that “The technology is ahead of the law in many areas,” citing state laws that “all presume to have a human being operating the vehicle”.[2] According to The New York Times, policy makers and regulators have argued that new laws will be required if driverless vehicles are to become a reality because “the technology is now advancing so quickly that it is in danger of outstripping existing law, some of which dates back to the era of horse-drawn carriages”.[6]
Google lobbied for two bills that made Nevada the first state where autonomous vehicles can be legally operated on public roads. The first bill is an amendment to an electric vehicle bill that provides for the licensing and testing of autonomous vehicles. The second bill will provide an exemption from the ban on distracted driving to permit occupants to send text messages while sitting behind the wheel. The two bills came to a vote before the Nevada state legislature’s session ended in June 2011. It has been speculated that Nevada was selected due to the Las Vegas Auto Show and the Consumer Electronics Show, and the high likelihood that Google will present the first commercially viable product at either or both of these events. Google executives, however, refused to state the precise reason they chose Nevada to be the maiden state for the autonomous car.[6]
Nevada passed a law in June 2011 concerning the operation of autonomous cars in Nevada, [4][5][6] which went into effect on March 1, 2012.[7] A Toyota Prius modified with Google’s experimental driverless technology was licensed by the Nevada Department of Motor Vehicles (DMV) in May 2012. This was the first license issue in the United States for a self-driven car.[7] License plates issued in Nevada for autonomous cars will have a red background and feature an infinity symbol (∞) on the left side because, according to the DMV Director, “…using the infinity symbol was the best way to represent the ‘car of the future’.” [11] Nevada’s regulations require a person behind the wheel and one in the passenger’s seat during tests.
Google’s robotic test cars have about $150,000 in equipment including a $70,000 LIDAR (laser radar) system.[20] The range finder mounted on the top is a Velodyne 64-beam laser.[21]

http://en.wikipedia.org/wiki/Google_driverless_car