Why not use the storage access framework, which is agnostic to where the files are being saved whether local or remote? By selecting the file to open or naming it to save, you choose a destination and permission is implicitly granted to that location for that file. Could be google drive or the local file system or any cloud provider app that supports SAF. No storage permissions needed, and it's been around for years and years.
It's always suspect when a big company asks for more regulation-- OpenAI, FTX, etc. It's usually in the name of the public good or fairness etc, but they may actually be looking for legal recognition of otherwise dubious activities, ways to block out new competition, or they could be trying to curtail inevitable regulation by writing the law themselves in the most favorable way possible.
https://x.com/Tesla/status/1954992987223757149