Robotaxi companies have They thrived in California, where good weather, enthusiasm for technology, and sophisticated workforces have supported their growth for nearly two decades. But a delayed decision by a state regulatory agency is now holding back Alphabet subsidiary Waymo, the U.S. leader in driverless robotaxi services.

The delay means Waymo is not yet allowed to expand into parts of Northern and Southern California. And, in a plus for passengers, Waymo still can’t charge California passengers for rides in its new vehicle, a pale blue Chinese-made car it calls the Ojai, which began picking up passengers last month.

If Waymo continues to operate these vehicles in its driverless shuttle service, they could be free through the end of September and perhaps beyond. (The company continues to charge for rides on its Jaguar I-Pace robotaxis, which make up the bulk of its fleet.)

Unlike other states that allow robotaxis to launch test operations and then public services without much, if any, oversight, California does not allow the vehicles to hit the roads without permission. To put their autonomous vehicles on the road, companies require approval from the state Department of Motor Vehicles. They also need permission from the California Public Utilities Commission, which regulates taxis and other transportation services, to transport paying passengers.

Courtesy of Waymo

Waymo petitioned the CPUC in January to expand its service area and add its Ojai cars to its fleet. In Northern California, its proposed new service area would extend from Sea Ranch and Sacramento in the north, through Berkeley and Oakland, to San Jose. In Southern California, it would grow beyond Los Angeles to Thousand Oaks and Santa Clarita, and to the Tijuana border past San Diego.

But the process has been mired in an unusual amount of controversy. In May, the agency requested more information about how Waymo responds to emergency incidents, such as the San Francisco power outage in December that left more than 60 Waymos stranded in traffic. It also requested new details about how Waymo ensures that unaccompanied minors do not ride in its cars, a violation of state law. The questions arose after a union representing ride-hailing drivers filed a formal complaint with the agency about Waymo transporting unaccompanied minors.

Now, the CPUC’s Division of Enforcement and Consumer Protection and Waymo have agreed to a new extension until September 25, according to Terrie Prosper, a spokesperson for the agency. Waymo’s application “is still under review and the items requested for approval have not been authorized,” Prosper said.