Alliance Legislative P riorities

Commercial Drone Alliance 2018 Legislative Priorities

Executive Summary To promote commercial drone integration in a way that is safe and secure, Congress should support the following initiatives in the FAA Reauthorization bill or other relevant legislation: o Eliminate (or at the very least amend) the Section 336 hobbyist loophole, which endangers the safety and security of the airspace and slows innovation. o Require the FAA to require remote identification for all drones over 250 grams, including hobbyist drones. o Direct the FAA to swiftly implement a rule authorizing low-risk operations over people. o

Direct the FAA to allow safe operations beyond visual line of sight in a timely way.

o Direct the FAA to streamline and improve the operation waiver process. o Direct the FAA to implement a “Trusted Operator� program that establishes streamlined permitting and operational procedures for authorized commercial UAS operations. o State the sense of Congress supporting the industry-driven Unmanned Aircraft Traffic Management (UTM) System and its timely implementation. o Ensure that UAS programs, and relevant agency offices, are adequately funded and staffed to accomplish these priorities and support existing programs in a timely way.

Congress should pass appropriately-tailored UAS threat mitigation legislation as part of an FAA/DOD/DHS reauthorization: o Congress should pass properly-tailored UAS threat mitigation legislation that would enable law enforcement to mitigate or confront drone threats so long as such legislation would avoid unintended consequences that may restrict innovation, adversely affect authorized commercial drone flights, threaten privacy, civil rights, or civil liberties, or otherwise cause harm.

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As part of an infrastructure package, Congress should include provisions designed to move the commercial drone industry forward: o Design tax incentives for construction and infrastructure companies that use new technologies such as UAS. o State the sense of Congress that the Unmanned Aircraft Traffic Management (UTM) program is an important piece of our country’s next-generation infrastructure challenges, and that the solution should be driven by the private sector. o Support the private sector’s Unmanned Aircraft Traffic Management (UTM) System efforts to develop “highways in the sky” for UAS, working with NASA, FAA and other partners.

Background The budding commercial Unmanned Aircraft Systems (“UAS” or so-called “drone”) industry is transforming our world and our way of life. Technology has surged ahead, and what used to be considered toys are now powerful tools of public agencies, law enforcement and industry. Drones today enhance disaster response, inspection and newsgathering capabilities. The possibilities for tomorrow’s drone applications are limited only by our imagination.

Right now, Congress and the federal government have the opportunity to build our economy, create jobs, unleash the innovation of entrepreneurs and move our country forward by removing unnecessary restrictions and safely integrating UAS into our National Airspace System (“NAS”). Once properly enabled, the integration of UAS into our nation’s NAS will save countless lives and have a significant economic impact here in the United States.

The UAS revolution is an economic boom in the making. A recent PricewaterhouseCoopers report estimated the global market value of UAS-powered solutions at over $127 billion. The FAA has projected there will be 11 million commercial drones sold here in the U.S. by 2020, just 2 years from now.

But as big and exciting as these numbers are, they are built on the assumption that our policy and regulatory frameworks keep pace. As is so often the case, technology has moved more quickly than policymaking—and UAS integration efforts have lagged behind the pace of innovation in the United States. While there has been progress over the last two years, the United States is behind much of the international community and many companies, small and large, have been forced to move their UAS operations and testing abroad.

This growing industry thus represents a significant and timely opportunity for Congress, as lawmakers once again approach FAA Reauthorization and are considering a legislative infrastructure package.

Under the current legal framework, commercial drones fly under the oversight of the FAA. In August 2016, Part 107 of the Federal Aviation Regulations took effect. For the first time ever, the rules broadly authorize commercial drone flights. This was a significant and critical step forward. However, much more needs to be done to realize the full potential of drone technology.

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In order to maintain our nation’s competitive edge, Congress should require the federal government to design and implement a sensible UAS regulatory framework in a timely way that promotes innovation while protecting the public interest, keeps our airspace safe and secure, fully exploits the incredible public interest benefits of this technology, and moves the U.S. into the next generation of unmanned flight.

The Commercial Drone Alliance supports a policy agenda that will create well paid and highly skilled jobs in the field of robotics, in turn benefiting other industries such as energy, construction, mining and more. This agenda, properly implemented, will enable the American public to take advantage of the life-saving and efficiency benefits of drones in a way that addresses safety, security, and privacy concerns.

The Commercial Drone Alliance is happy to work with legislators and the FAA to further these goals.

To assist you in this effort, we include here our top legislative priorities.

FAA-Focused Legislative Proposals: To integrate the airspace properly, and in a way that is safe and secure, Congress needs to immediately require the FAA to establish basic “rules of the road” that apply to all drone users. Just like the highways we traverse every day in cars and trucks, it is critical that all vehicles navigating “highways in the sky,” including hobbyist drones, participate in the broader drone ecosystem. Policy and regulations defining these rules of the road, combined with technology able to assign drones a “license plate,” are a necessary step to expand commercial drone operations.

To this end, legislation is immediately necessary to properly integrate drones into the NAS. Section 336 of the FAA Modernization and Reform Act, which carves out qualifying model aircraft from regulation entirely, is outdated. As technology has improved exponentially over the last few years and the commercial drone industry has taken to the sky, hobbyists are no longer flying alone.

Lawmakers must eliminate, and at the very least amend, Section 336 in order to enable the FAA to require positive ID and tracking in a sensible way. This is a foundational and common sense issue that needs congressional attention now. To move the rulemaking process forward expeditiously, Congress should further require FAA to finalize a remote identification and tracking rule by the end of 2018.

A common sense approach is to require remote identification for all drones over 250 grams, including hobbyist drones.

Congress has an additional opportunity now to remove regulatory barriers to enable the growth of the commercial drone market. The current regulatory framework needlessly limits safe UAS operations, and impedes the economic potential of the UAS industry. To take full advantage of the safety and efficiency benefits of drones, companies need to be able to fly in urban and suburban environments, where people are. To inspect pipelines and railroads, they need to be able to fly beyond visual line of sight. To respond to disasters, they need to be able to fly at night. But all of these are currently prohibited under the rules without special waivers from the FAA, which are burdensome and costly for industry. Moreover, package delivery with UAS beyond visual line of sight is not allowed at all under Part 107, even with a waiver—causing many companies to move their delivery operations abroad, where regulatory frameworks offer more flexibility. Technology advancements enable such operations to occur safely and should be allowed.

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As the FAA itself recently admitted, the waiver process is limping along. Most of the waivers that have been granted are night waivers, with a long line of waiver applications waiting in a queue. Congress should direct the federal government to implement additional rulemakings quickly for flights over people, beyond the line of sight and for package delivery that expand the current operating envelope safely.

In particular, to further enable commercial market growth, Congress should require: o The FAA, working with the federal government interagency working group, to swiftly implement a rule authorizing low-risk operations over people by a date certain. The FAA should adopt a flexible and reasonable approach related to the ability to fly drones over people within six months of enactment, and work collaboratively with national security agencies (DOJ, DHS, DOD, and others) to do so. o The FAA to allow safe operations beyond visual line of sight in a timely way. No later than six months after implementation of FAA Reauthorization, the FAA should complete a rulemaking to allow safe operations beyond visual line of sight. o The FAA to implement a “Trusted Operator” program that establishes streamlined permitting and operational procedures for authorized commercial UAS operations. Given the strong public benefit of commercial drone use, it is important to streamline these operations and allow authorized commercial operators to proactively gain the trust of public officials and the general public in order to unleash the enormous potential of the commercial UAS market. o The FAA to streamline and improve the waiver process. The waiver process is cumbersome and lacks clear guidelines. Waivers themselves must also offer substantive relief for companies seeking to enable real-world UAS operations.

Congress also plays a critical role in advancing the Unmanned Aircraft Traffic Management (UTM) System. In order to properly facilitate UAS integration alongside manned aircraft, over structures and people, and near other UAS, the federal government must enable industry to develop next-generation “highways in the sky.”

Congress should therefore include in the FAA Reauthorization: o A sense of Congress supporting the industry-driven Unmanned Aircraft Traffic Management (UTM) System. Congress should enhance and highlight the efforts of NASA, FAA, and their industry partners to ensure the safe, secure and efficient use of the airspace, and make an Unmanned Aircraft Traffic Management System operational in a timely way.

Funding for FAA UAS integration programs and priorities is critically important. Congress must ensure that UAS programs, and relevant agency offices, are adequately funded and staffed to accomplish these priorities and support existing programs in a timely way.

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Congress should also include guidance on preemption issues: o Congress must provide guidance to state and local governments on federal-state preemption issues so as to avoid a patchwork of state laws that disable the industry’s growth.

Congressional Infrastructure Package Legislative Proposals: As part of the congressional infrastructure package, Congress should include provisions designed to move the commercial UAS industry forward.

In particular, Congress should include in the infrastructure package: o Tax incentives for construction and infrastructure companies that use new technologies such as UAS. These technologies can improve processes, reduce costs and provide additional jobs in the United States. o A Sense of Congress that the Unmanned Aircraft Traffic Management (UTM) program is an important piece of our country’s next generation infrastructure challenges, and that the solution must be driven by the private sector. o Support for the private sector’s Unmanned Traffic Management System efforts to develop “highways in the sky” for UAS, working with NASA, FAA and other partners.

FAA / DHS / DOD / Standalone Legislative Proposals The government, industry, and the general public share a common interest in establishing reasonable limitations to protect against potential public safety and homeland security threats posed by UAS. Legislation is necessary to enable the government to counter drone security threats.

Congress should pass properly-tailored UAS threat mitigation legislation that would enable law enforcement to mitigate or confront drone threats so long as such legislation would avoid unintended consequences that may restrict innovation, adversely affect authorized commercial drone flights, threaten privacy, civil rights, or civil liberties, or otherwise cause harm.

Conclusion: The benefits of UAS for commercial, educational, and humanitarian purposes are substantial. Whether for search and rescue, disaster response, precision agriculture, gathering news, inspecting pipelines, delivering medicine to rural locations, and everything in between—the potential applications for UAS are limited only by our nation’s collective imagination.

Once broadly enabled, UAS technology will bring incredible benefits to the daily lives of U.S. citizens, including cheaper goods, innovative services, safer infrastructure and greater economic activity. To enable safe UAS flight, the United States needs a sensible regulatory framework that accounts for safety, security and privacy concerns. Congress has a significant opportunity to move UAS policymaking forward now through FAA legislation and infrastructure packages.

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For more information, please contact: Lisa Ellman, Co-Executive Director P: (202) 297 2650 E: lellman@commercialdronealliance.org

Gretchen West, Co-Executive Director P: (650) 670 2814 E: gwest@commercialdronealliance.org

Michael Bell, Government Relations P: (202) 637 5441 E: Michael.bell@hoganlovells.com

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