City and business leaders are launching a new initiative to position the downtown Sacramento grid to be the national test bed for autonomous vehicle innovation.

In an effort announced Wednesday by Sacramento Kings owner Vivek Ranadivé, Sacramento Congresswoman Doris Matsui and Sacramento Mayor Darrell Steinberg, the city is forming the Autonomous Transportation Open Standards (ATOS) Lab.

Sacramento is poised to be a center for autonomous vehicle research because it is home to state licensing and…