[Federal Register Volume 90, Number 150 (Thursday, August 7, 2025)]
[Proposed Rules]
[Pages 38212-38391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-14992]



[[Page 38211]]

Vol. 90

Thursday,

No. 150

August 7, 2025

Part III





Department of Transportation





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Federal Aviation Administration





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14 CFR Parts 36, 43, 45, et al.





 Department of Homeland Security





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Transportation Security Administration





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49 CFR Parts 1540 and 1544





 Normalizing Unmanned Aircraft Systems Beyond Visual Line of Sight 
Operations; Proposed Rule

Federal Register / Vol. 90 , No. 150 / Thursday, August 7, 2025 / 
Proposed Rules

[[Page 38212]]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 36, 43, 45, 48, 89, 91, 107, 108, 119, 133, 135, 137, 
and 146

[Docket No. FAA-2025-1908; Notice No. 25-07]
RIN 2120-AL82

DEPARTMENT OF HOMELAND SECURITY

Transportation Security Administration

49 CFR Parts 1540 and 1544

RIN 1652-AA80


Normalizing Unmanned Aircraft Systems Beyond Visual Line of Sight 
Operations

AGENCY: Federal Aviation Administration (FAA), Department of 
Transportation, and Transportation Security Administration (TSA), 
Department of Homeland Security.

ACTION: Notice of proposed rulemaking (NPRM)

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SUMMARY: This action proposes performance-based regulations to enable 
the design and operation of unmanned aircraft systems (UAS) at low 
altitudes beyond visual line of sight (BVLOS) and for third-party 
services, including UAS Traffic Management (UTM), that support these 
operations. The FAA Reauthorization Act of 2024 directs the development 
of this proposed rule. This proposed rule is necessary to support the 
integration of UAS into the national airspace system (NAS). This 
proposed rule is intended to provide a predictable and clear pathway 
for safe, routine, and scalable UAS operations that include package 
delivery, agriculture, aerial surveying, civic interest, operations 
training, demonstration, recreation, and flight testing. TSA proposes 
to make complementary changes to its regulations to ensure it can 
continue to impose security measures on these operations under its 
current regulatory structure for civil aviation.

DATES: Send comments on or before October 6, 2025.

ADDRESSES: Send comments identified by docket number FAA-2025-1908 
using any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov/ and follow the online instructions for sending 
your comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S. 
Department of Transportation (DOT), 1200 New Jersey Avenue SE, Room 
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket 
Operations in Room W12-140 of the West Building Ground Floor at 1200 
New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at (202) 493-2251.
    Docket: Background documents or comments received may be read at 
https://www.regulations.gov/ at any time. Follow the online 
instructions for accessing the docket or go to the Docket Operations in 
Room W12-140 of the West Building Ground Floor at 1200 New Jersey 
Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through 
Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Michelle Ferritto, ARM-100, Federal 
Aviation Administration, 800 Independence Avenue SW, Washington, DC 
20592; Phone: Phone: 844 359-6982; Email: [email protected].

SUPPLEMENTARY INFORMATION: 

List of Abbreviations and Acronyms Frequently Used in This Document

AAM--Advanced Air Mobility
AC--Advisory Circular
ACAS--Airborne Collision Avoidance System
ADS--B Automatic Dependent Surveillance-Broadcast
AE--Associated Elements
AGL--Above Ground Level
API--Application Programming Interface
ARC--Aviation Rulemaking Committee
ASOS--Automated Surface Observing System
ASRS--Aviation Safety Reporting System
ATC--Air Traffic Control
ATM--Air Traffic Management
AWOS--Automated Weather Observing System
BVLOS--Beyond Visual Line of Sight
C2--Command-and-Control
CBI--Confidential Business Information
CFR--Code of Federal Regulations
CMSA--Conformance Monitoring for Situational Awareness
COA--Certificate of Waiver or Authorization
COMAT--Company Materials
ConOps--Concept of Operations
COS--Continued Operational Safety
DAA--Detect and Avoid
DOC--Declaration of Compliance
DOT--Department of Transportation
DSS--Discover and Synchronization Service
EASA--European Union Aviation Safety Agency
EC--Electronic Conspicuity
FAA--Federal Aviation Administration
FRIA--FAA-Recognized Identification Areas
FSDO--Flight Standards District Office
GA--General Aviation
GCS--Ground Control Station
GPS--Global Positioning Systems
HAZMAT--Hazardous Materials
HIRF--High Intensity Radiated Field
HME--Hazardous Materials Endorsement
HMR--Hazardous Materials Regulations
IBR--Incorporation by Reference
ICAO--International Civil Aviation Organization
IRFA--Initial Regulatory Flexibility Analysis
IUEI--Intentional Unauthorized Electronic Interaction
JARUS--Joint Authorities for Rulemaking on Unmanned Systems
LAANC--Low Altitude Authorization and Notification Capability
MAIS--Maximum Abbreviated Injury Scale
METAR--Meteorological Aerodrome Report
MIT/LL--Massachusetts Institute of Technology Lincoln Laboratory
MOA--Memorandum of Agreement
MOC--Means of Compliance
MOPS--Minimum Operational Performance Standards
MOSAIC--Modernization of Special Airworthiness Certification
NAICS--North American Industry Classification System
NAS--National Airspace System
NASA--National Aeronautics and Space Administration
nm--Nautical Miles
NOTAM--Notice to Airmen
NPRM--Notice of Proposed Rulemaking
NTSB--National Transportation Safety Board
NWS--National Weather Service
OMB--Office of Management and Budget
OpSpecs--Operation Specifications
OST--Office of the Secretary of Transportation
PAO--Public Aircraft Operation
PHMSA--Pipeline and Hazardous Materials Safety Administration
PNT--Positioning, Navigation, and Timing
POI--Principal Operations Inspector
RFA--Regulatory Flexibility Act
RPA--Rule of Particular Applicability
SAC--Special Airworthiness Certificate
SARPS--Standards and Recommended Practices
SBA--Small Business Administration
SDSP--Supplemental Data Service Provider
SMS--Safety Management System
SOH--State of Health
SORA--Specific Operations Risk Assessment
SPSO--Service Provider Standard Order
SRA--Safety Risk Assessment
STA--Security Threat Assessment
STEM--Science, Technology, Engineering, and Mathematics
sUAS--Small UAS
SUI--Simplified User Interaction
sXu--System X for sUAS
TAF--Terminal Area Forecast
TRACON--Terminal Radar Approach Control
TSA--Transportation Security Administration
TSO--Technical Standards Order
UA--Unmanned Aircraft
UAS--Unmanned Aircraft System
UAT--Universal Access Transceiver
UES--Universal Enrollment Service(s)
UFT--UTM Field Test
UPP--UTM Pilot Program
USS--Unmanned Aircraft System Service Supplier
USSP--U-Space Service Provider

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UTM--Unmanned Aircraft System Traffic Management
VLOS--Visual Line of Sight
VSL--Value of Statistical Life
VTOL--Vertical Takeoff and Landing
xTM--Extensible Traffic Management

Table of Contents

I. Executive Summary
    A. Purpose of This Regulatory Action
    B. Overview of Proposed Rule
    C. Summary of the Costs and Benefits
II. Authority for This Rulemaking
    A. Section 44807 Statutory Findings
    B. Authority for Regulating Third-Party Services
    C. Authority for Regulating Noise
III. Background
    A. Related FAA and Department of Transportation (DOT) Actions
    B. Use of Exemptions, Type Certificates, and Waivers
    C. Beyond Visual Line of Sight Aviation Rulemaking Committee
    D. BVLOS Operations and International Leadership
IV. UAS Integration Into the NAS
    A. Enabling UAS BVLOS Operations
    B. Need for Automated Data Service Providers
    C. Definitions (Sec.  108.5)
V. Part 108 General Requirements (Subpart A)
    A. Applicability (Sec.  108.1)
    B. Reporting and Prohibitions
    C. Recordkeeping (Sec.  108.40)
    D. Reporting (Sec.  108.45)
VI. Conducting UAS BVLOS Operations (Subpart B)
    A. Operating Unmanned Aircraft Under Part 108
    B. General Operating Rules (Sec.  108.120)
    C. ADS-B and Transponder Use (Sec.  108.160)
    D. Area of Operations (Sec.  108.165)
    E. Preflight Requirements (Sec.  108.170)
    F. Operating Restrictions (Sec.  108.175)
    G. Operation in Controlled Airspace (Sec.  108.180)
    H. Operations Over People (Sec.  108.185)
    I. Use of Strategic Deconfliction and Conformance Monitoring 
(Sec.  108.190)
    J. Operations Near Aircraft: Low Altitude Right-of-Way Rules 
(Sec.  108.195)
    K. Remote Identification of Unmanned Aircraft (Sec.  108.200)
    L. Operation in Shielded Areas (Sec.  108.205)
    M. Operations of Multiple Unmanned Aircraft (Sec.  108.210)
    N. Careless and Reckless Operation (Sec.  108.125)
    O. Manuals (Sec. Sec.  108.130 and 108.135)
    P. Emergency Conditions (Sec.  108.215)
    Q. Unmanned Aircraft Flight Restriction (Sec.  108.220)
VII. Personnel Requirements (Subpart C)
    A. Approach to Personnel in Part 108
    B. Personnel Roles and Responsibilities
    C. Personnel Knowledge and Training (Sec.  108.315)
    D. Medical Condition (Sec.  108.320)
    E. Alcohol or Drugs (Sec.  108.325)
    F. Duty and Rest (Sec.  108.330)
    G. Security Threat Assessment for Certain Personnel (Sec.  
108.335)
VIII. Permitted and Certificated Operations (Subparts D and E)
    A. Requesting Operating Permits or Operating Certificates 
(Sec. Sec.  108.400 and 108.500)
    B. Permitted Operations
    C. Certificated Operations
IX. Maintenance and Alterations (Subpart F)
    A. Applicability
    B. Persons Authorized To Perform Maintenance (Sec.  108.605)
    C. Persons Performing Maintenance and Alterations (Sec.  
108.605)
    D. Unmanned Aircraft Maintenance (Sec.  108.610)
    E. Life-Limited Parts (Sec.  108.615)
    F. Unmanned Aircraft Batteries (Sec.  108.620)
    G. Repairs and Alterations (Sec.  108.625)
    H. Operations After Maintenance (Sec.  108.630)
X. Procedures for Unmanned Aircraft System Airworthiness (Subpart G)
    A. Unmanned Aircraft System Airworthiness
    B. Associated Elements (Sec.  108.5)
    C. Applying for a Part 108 Airworthiness Acceptance
    D. Means of Compliance (Sec. Sec.  108.705 and 108.710)
    E. Compliance With Design, Test, Production, Noise, and 
Airworthiness Requirements (Sec.  108.710)
    F. Declaration of Compliance (Sec.  108.715)
    G. Required Documents for Airworthiness Acceptance (Sec.  
108.720)
    H. Flight Data and Data Reporting (Sec.  108.725)
    I. Quality Assurance System (Sec.  108.730)
    J. Production Acceptance (Sec.  108.735)
    K. Continued Operational Safety Program (Sec.  108.740)
    L. Inspections and Audits (Sec.  108.745)
    M. Design Changes (Sec.  108.750)
    N. Repairs and Alterations (Sec.  108.755)
    O. Record Retention (Sec.  108.760)
    P. Rescission (Sec.  108.765)
XI. Design and Testing Requirements for Airworthiness Acceptance 
(Subpart H)
    A. General (Sec.  108.800)
    B. Size, Weight, and Speed (Sec.  108.805)
    C. Simplified User Interaction (Sec.  108.810)
    D. Signal Monitoring and Transmission (Sec.  108.815)
    E. Position, Navigation, and Timing (Sec.  108.820)
    F. Collision Avoidance (Sec.  108.825)
    G. Anti-Collision Lighting Requirements (Sec.  108.830)
    H. Position Lighting Requirements (Sec.  108.835)
    I. Power Generation, Storage, and Distribution System (Sec.  
108.840)
    J. Propulsion System (Sec.  108.845)
    K. Fuel System (Sec.  108.850)
    L. Fire Protection (Sec.  108.855)
    M. Software (Sec.  108.860)
    N. Electronic Hardware (Sec.  108.865)
    O. Systems and Equipment (Sec.  108.870)
    P. Cybersecurity (Sec.  108.875)
    Q. Associated Elements Design and Performance Requirements 
(Sec.  108.880)
    R. Suitability and Durability of Materials (Sec.  108.885)
    S. Operating Environment Conditions (Sec.  108.890)
    T. Lightning Protection (Sec.  108.895)
    U. Flight Data Recorder (Sec.  108.900)
    V. Flight Data Analysis (Sec.  108.905)
    W. Noise (Sec.  108.910)
    X. Placards (Sec.  108.915)
    Y. Identification and Marking (Sec.  108.920)
    Z. Additional Design and Performance Requirements for 
Operational Purposes (Sec.  108.925)
    AA. Testing
XII. Corresponding Regulatory Updates
    A. Updates to Noise Requirements
    B. Updates to Other Operating Rules
XIII. Part 146: Automated Data Service Providers
    A. Introduction
    B. Legal Authority to Regulate Automated Data Service Providers
    C. BVLOS ARC Recommendations
    D. Overview of Proposed Part 146
    E. Subpart A--General
    F. Subpart B--Certificate
    G. Subpart C--Service Authorizations
    H. Subpart D--Certificated Service Providers
    I. Subpart E--Authorized Service Requirements
    J. Subpart F--Due Process
    K. Proposed Advisory Circulars
XIV. Regulatory Notices and Analyses
    A. Regulatory Impact Analysis
    B. Regulatory Flexibility Act
    C. International Trade Impact Assessment
    D. Unfunded Mandates Assessment
    E. Paperwork Reduction Act
    F. International Compatibility
    G. Environmental Analysis
    H. Regulations Affecting Intrastate Aviation in Alaska
XV. Executive Order Determinations
    A. Executive Order 13132, Federalism
    B. Executive Order 13175, Consultation and Coordination With 
Indian Tribal Governments
    C. Executive Order 13211, Regulations That Significantly Affect 
Energy Supply, Distribution, or Use
    D. Executive Order 13609, Promoting International Regulatory 
Cooperation
    E. Executive Order 14192, Unleashing Prosperity Through 
Deregulation
XVI. Incorporation by reference
XVII. Privacy
XVIII. Additional Information
    A. Comments Invited
    B. Confidential Business Information
    C. Electronic Access and Filing
    D. Small Business Regulatory Enforcement Fairness Act

I. Executive Summary

A. Purpose of This Regulatory Action

    This action proposes performance-based regulations for the design 
and operation of unmanned aircraft systems (UAS) beyond visual line of 
sight (BVLOS) and for third-party services that support these 
operations, including UAS Traffic Management (UTM). The purpose of this 
proposed rule is to enable the expansion of BVLOS UAS operations for 
commercial and recreational purposes at low altitudes in the national 
airspace system (NAS).\1\ To

[[Page 38214]]

date, the Federal Aviation Administration (FAA) has allowed some such 
operations through individualized exemptions and waivers to existing 
regulations. This NPRM leverages lessons learned from individual 
exemptions and waivers to create the repeatable, scalable regulatory 
framework FAA proposes here that would allow for wide-scale adoption of 
UAS technologies. This proposed rule would be the next phase of 
integrating UAS into the NAS and provide a predictable and clear 
pathway for operators to conduct expanded operations safely. Further, 
this proposed rule's Automated Data Service requirements would provide 
clarity for manufacturers and service providers producing UAS and 
offering key enabling services, such as UTM, to UAS operators. FAA 
anticipates that this proposed rulemaking will allow operators to 
conduct a variety of operations, including package delivery, 
agriculture, aerial surveying, civic interest (to include wildfire 
recovery, wildlife conservation, and public safety), flight training, 
demonstration, flight testing, and recreation.
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    \1\ Pursuant to 5 U.S.C. 553(b)(4), FAA has provided a summary 
of this proposed rule in the docket for 2120-AL82, available at 
www.regulations.gov.
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    Since the promulgation of 2016's operating requirements for small 
UAS in part 107, FAA has sought to incorporate more complex operations 
(e.g., larger, and more automated aircraft operating BVLOS of the 
operator) safely into the NAS through appropriate regulatory means. In 
June 2021, FAA chartered the UAS BVLOS Aviation Rulemaking Committee 
(ARC), soliciting recommendations to support a regulatory framework 
reflective of the technological capabilities of UAS. In March 2022, the 
ARC provided FAA with recommendations on how BVLOS operations could be 
safely integrated into the NAS.
    Further, in May of 2024, Congress passed FAA Reauthorization Act of 
2024 (Public Law [Pub. L.] 118-63). Section 930 of Public Law 118-63 
directs the FAA Administrator to issue a notice of proposed rulemaking 
(NPRM) and subsequent final rule establishing a performance-based 
regulatory pathway for UAS to operate BVLOS. In addition, section 932 
directs the FAA Administrator to establish procedures to approve third-
party service suppliers of UTM. As part of its ongoing efforts to 
integrate UAS operations into the NAS, and pursuant to 49 U.S.C. 44807, 
the FAA Administrator is proposing to amend FAA regulations to adopt 
specific rules for BVLOS operations of UAS in the NAS.
    Based on its experience over the past few years with enabling 
limited BVLOS operations through exemption or waiver and with the 
comprehensive set of recommendations from the UAS BVLOS ARC, FAA has 
developed the framework proposed in this rule to enable routine and 
scalable BVLOS operations in the NAS. This proposed framework would 
accommodate technologies as they evolve and mature using a performance-
based regulatory framework.
    In addition, the Transportation Security Administration (TSA) is 
proposing revisions to its regulations to ensure that the decision to 
regulate these UAS operations under part 108 does not inadvertently 
create a security gap under TSA regulations. Under this proposal, which 
has been developed in consultation with FAA, TSA would continue to 
ensure the security of the national airspace by imposing appropriate 
security requirements. TSA notes that in the sections of this preamble 
related to package delivery operations, TSA has included a request for 
comment regarding potential security program applicability in a final 
rule. This request for comment relates to a broader set of activities 
than package delivery operations. While FAA and TSA are issuing a joint 
proposed rulemaking, the agencies intend to concurrently issue separate 
final rules.

B. Overview of the Proposed Rule

    This proposed rule would establish requirements for conducting UAS 
BVLOS operations in United States airspace. FAA anticipates many, 
though not all, operations under proposed part 108 will be commercial. 
This action would normalize certain low altitude UAS operations and 
expedite the introduction of BVLOS UAS operations in the NAS while 
ensuring the safety and efficiency of United States airspace. This 
proposed rule is the next step in integrating UAS into the NAS, which 
FAA anticipates would provide safety, societal, and economic benefits.
    Section II of this preamble details the legal authority for this 
rulemaking, while section III of this preamble provides a background of 
prior rulemakings and policy efforts FAA has undertaken to allow UAS 
operations in the United States. Section IV of this preamble describes 
the approach FAA has proposed to integrate BVLOS UAS operations, 
including the novel approaches to authorizing aircraft and personnel 
proposed under part 108 and the framework for third-party service 
suppliers proposed by part 146. Section V of this preamble describes 
the operational requirements applicable to all BVLOS operations 
conducted under part 108. These general operating requirements include 
the administrative requirements for the two tiers of operational 
authorization, permits and certificates, as discussed in section VIII 
of this preamble. Section VI of this preamble outlines FAA's approach 
for airspace management, including requirements for strategic 
deconfliction, detect and avoid (DAA), operations in uncontrolled and 
controlled airspace, operations over people, operations of multiple 
aircraft, and other conditions for safe operation.
    This rule proposes a novel structure for operations personnel, as 
discussed in section VII of this preamble. Under this proposal, FAA 
would not require airman certificates but would require each operator--
both permitted and certificated--to have an operations supervisor 
responsible for the overall safety of the operation. In addition, FAA 
proposes that operators must have qualified flight coordinators, who 
are individuals responsible for monitoring and, if necessary, 
intervening in an operation to ensure safe conditions. Whereas the 
operations supervisor has operational control over the entire 
operation, the flight coordinator(s) would have tactical oversight of 
individual aircraft.
    FAA anticipates that the operations conducted under part 108 would 
have a variety of operational personnel positions and therefore does 
not propose to require any additional operations personnel positions. 
All operators would be responsible for identifying the necessary 
operations personnel to ensure the safety of the operation, in addition 
to ensuring that the operations personnel have the necessary knowledge 
and skills for their role. In this manner, responsibility is tied to 
the company operating the UAS rather than an individual that has 
limited control of the actual operation and can be removed from their 
position if necessary.
    As noted above, section VIII of this preamble describes the permit 
and certificate structure proposed by this rule. Permitted operations 
would allow operators to conduct certain BVLOS operations using a 
streamlined approach under a permit issued by FAA. The permit structure 
would allow package delivery, agricultural operations, aerial 
surveying, civic interest, unmanned aircraft (UA) operations training, 
flight test, demonstration, and recreational operations, though subject 
to certain limitations on size, number of aircraft, and other operating 
requirements. Those operators conducting higher risk

[[Page 38215]]

threshold operations, due to size, weight, speed, or other parameters, 
would instead need to seek operational certification. Obtaining an 
operating certificate would allow for more complex package delivery, 
agricultural operations, aerial surveying, and civic interest 
operations than operating under an operating permit. Certificated 
operations would receive greater oversight from FAA but would also be 
able to use larger aircraft, have more aircraft, and have more 
flexibility to operate over people. Operations conducted under an 
operating certificate would require operators to develop a safety 
management system (SMS) and a training program for operations 
personnel.
    Maintenance personnel would not be certificated under this proposed 
rule. Section IX of this preamble details the requirements for 
maintenance and maintenance personnel. Maintenance standards for these 
aircraft would be set by the manufacturer and be based on industry 
adopted consensus standards, and personnel that maintain them would be 
required to be competent in their duties and receive the training 
required by the manufacturer to perform those duties.
    Sections X and XI of this preamble lay out the proposal for the new 
airworthiness acceptance process developed to allow for an efficient 
approval process of part 108 UAS, while maintaining the integrity of 
the NAS and the safety of the public. Using industry consensus 
standards, this action would establish a regulatory process for 
airworthiness acceptance of a UAS, consisting of a UA and its 
associated elements (AE), where the UA weighs not greater than 1,320 
pounds (including anything attached to, or carried by the UA). Proposed 
part 108 would include new operational requirements for UA with 
airworthiness acceptance, enabling routine BVLOS operations without 
waivers or exemptions.
    Section XII of this preamble discusses corresponding changes to 
related regulations in other parts of title 14 of the Code of Federal 
Regulations (CFR) including a noise regulatory approach for UAS 
operating under proposed part 108.
    Finally, this action would create a defined regulatory approval 
pathway for third-party services and providers of those services--first 
to approve services that support UTM, and then eventually, to approve 
services that support extensible traffic management (xTM). FAA broadly 
defines all those service providers--be it third-party service 
suppliers or services self-provided by the operators--as Automated Data 
Service Providers.\2\
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    \2\ The term Extensible Traffic Management (xTM) is used to 
refer to cooperative service environments in general and is 
comprised of UTM, AAM, etc. FAA further discusses these concepts in 
its Urban Air Mobility (UAM) Version 2.0 Concept of Operations 
(ConOps) (Apr. 26, 2023), available at www.faa.gov/sites/faa.gov/files/Urban%20Air%20Mobility%20%28UAM%29%20Concept%20of%20Operations%202.0_1.pdf.
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    As further discussed in section XIII of this preamble, FAA would 
create a new part 146 to establish the process by which FAA would 
regulate automated data service providers as well as their automated 
data services. The purpose of part 146 is to provide a regulatory 
framework for appropriate government oversight of automated data 
services that support aircraft operations, especially those conducted 
under part 108. At the same time, the framework is designed to be 
flexible enough to accommodate the natural evolution and development of 
the technologies and systems on which these services are based. Through 
proposed part 146, FAA would authorize automated data service providers 
certificated under part 146 to provide services that would manage UAS 
traffic and information necessary for safe and efficient operation in 
the airspace. The provision of such services would be crucial, given 
the projected increase in numbers of UAS operating in the NAS once part 
108 is finalized. Under this proposal, strategic deconfliction and 
conformance monitoring services provided under part 146 would be key to 
the successful integration of UAS into the NAS and would be a 
requirement for several categories of UAS BVLOS operations under 
proposed part 108.

C. Summary of the Costs and Benefits

    The benefits of the proposed rule are the economic, safety, and 
health values that would result from scaled BVLOS operations. These 
benefits derive from the increase in regulatory certainty and 
efficiency, and framework for scaled operations, that proposed rule 
would provide. FAA evaluates the benefits of the proposed rule 
qualitatively. Compared with operations under the current regulatory 
framework, this proposed rule may result in incremental costs to comply 
with requirements for design, production, and operations. There may 
also be cost implications to becoming certificated to provide automated 
data services. FAA provides potential unit costs and example total 
costs.
    However, given that the proposed rule includes requirements that 
mirror current BVLOS exemptions while also proposing several new 
requirements to mitigate risks inherent in expanded BVLOS operations, 
incremental costs are few, and benefits would likely exceed costs. See 
section XIV.A of this preamble for more information.

II. Authority for This Rulemaking

    FAA's authority to issue rules on aviation safety is found in title 
49 of the United States Code (U.S.C.). subtitle I, Sec.  106 describes 
the authority of FAA Administrator. Subtitle VII, Aviation Programs, 
describes in more detail the scope of FAA's authority.
    This rulemaking is issued under the authority described in subtitle 
VII part A, subpart iii, Sec.  44807, Special authority for certain 
UAS, which permits FAA Administrator \3\ to use a risk-based approach 
to determine if certain UAS may operate safely in the NAS. Section 
44807(b) provides a list of factors that the FAA Administrator must 
consider when determining which types of UAS may operate safely in the 
NAS, including size, weight, speed, operational capability, proximity 
to airports and populated areas, operation over people, operation 
within visual line of sight (VLOS), or operation during the day or 
night. Section 44807(b) further requires the FAA Administrator to 
consider whether an airman certificate under Sec.  44703, a type, 
production, airworthiness, or design and production certificate under 
section 44704 of chapter 447, or a Certificate of Waiver or 
Authorization (COA) is required. Per Sec.  44807(c), when the FAA 
Administrator determines that certain UAS may operate safely in the NAS 
per that section, ``the Administrator shall establish requirements, or 
a process to accept proposed requirements, for the safe and efficient 
operation of unmanned aircraft systems in the national airspace 
system.''
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    \3\ See section 927 of FAA Reauthorization Act of 2024, Public 
Law 118-63.
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    In addition, FAA Reauthorization Act of 2024 (section 930 of Pub. 
L. 118-63) amended chapter 448 of title 49 of the U.S.C. by adding 
section 44811 to require the FAA Administrator to establish 
performance-based regulations for UAS to be used for BVLOS operations. 
The FAA Administrator must, at a minimum, establish acceptable risk 
levels for BVLOS operations; standards for remote pilots or UAS 
operators; an approval or acceptance process for UAS which may leverage 
special airworthiness certificates (SAC) or a manufacturer declaration 
of compliance (DOC) process; operating rules for UAS that are approved 
or accepted; protocols of

[[Page 38216]]

networked information; and safety of manned aircraft operating in the 
NAS. However, Sec.  44811 does not require the FAA Administrator to 
rescope any ongoing rulemaking efforts. This regulation is within the 
scope of these authorities.
    The FAA Reauthorization Act of 2018 (Pub. L. 115-254), which 
adopted 49 U.S.C. 44808, requires FAA to conduct rulemaking to 
authorize the carriage of property by small UAS for compensation or 
hire within the United States. FAA intends this proposal will also 
address that requirement. Furthermore, this rulemaking is promulgated 
pursuant to 49 U.S.C. 40103(b)(1) and (2), which directs FAA to issue 
regulations: (1) to ensure the safety of aircraft and the efficient use 
of airspace; and (2) to govern the flight of aircraft for purposes of 
navigating, protecting, and identifying aircraft, and protecting 
individuals and property on the ground. In addition, 49 U.S.C. 
44701(a)(5) charges FAA with promoting safe flight of civil aircraft by 
prescribing regulations FAA finds necessary for safety in air commerce 
and national security.
    On June 6, 2025, the President issued Executive Order No. 14307, 
Unleashing American Drone Dominance, which directs that ``the Secretary 
of Transportation, acting through the Administrator of the FAA, shall 
issue a proposed rule enabling routine BVLOS operations for UAS for 
commercial and public safety purposes.\4\ A final rule shall be 
published within 240 days of the date of this order, as appropriate.'' 
FAA is publishing this proposed rule to fulfill that directive.
---------------------------------------------------------------------------

    \4\ 90 FR 24727.
---------------------------------------------------------------------------

A. Section 44807 Statutory Findings

    To determine whether certain UAS may operate safely in the NAS 
pursuant to 49 U.S.C. 44807, the Administrator must find that the 
operation of the UAS would not create a hazard to users of the NAS or 
the public. The Administrator must also determine whether a certificate 
under 49 U.S.C. 44703 (``Airman certificates'') or section 44704 
(``Type certificates, production certificates, and airworthiness 
certificates, and design and production organization certificates''), 
or a certificate of waiver or certificate of authorization, is required 
for the operation of the UAS subject to this proposed rule. Using a 
risk-based approach, the Administrator has determined that UAS 
operations under this proposed rule would operate safely in the NAS; 
the individual findings required by section 44807 are as follows.
1. Hazard to Users of the NAS or the Public
    Section 44807(b)(1) requires the Administrator to determine which 
types of UAS operations, because of their size, weight, speed, 
operational capability, proximity to airports and populated areas, 
operation over people, and operation within or BVLOS, or operation 
during the day or night do not create a hazard to users of the NAS or 
the public.
    The hazards to the NAS and the public from BVLOS UAS operations are 
twofold: the collision risk posed to other users of the NAS (including 
manned aviation and other UAS), and the risk of collision debris or a 
faulty UAS posed to persons and property on the ground. Here, these 
safety concerns would be mitigated by the provisions of this rule. The 
risks to other NAS users and to persons and property on the ground 
would be mitigated by the airworthiness acceptance process, the 
personnel regulations, the general operating rules, and the specific 
operating rules for operating permits and operating certificates. The 
risks to other NAS users are further mitigated with the use of 
strategic deconfliction and conformance monitoring. In addition, the 
risks to people and property on the ground are mitigated through the 
designation of population density categories (and the corresponding 
restrictions on certain operations to certain population density 
categories), the general prohibition of operations over open-air 
assemblies, and the hazardous material carriage restrictions.\5\
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    \5\ This rulemaking uses the definition of hazardous material as 
defined in 49 U.S.C. 5102(2) and 49 CFR 171.8.
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    Accordingly, the Administrator has found that the UAS operations 
subject to this proposed rule would not create a hazard to users of the 
NAS or the public. FAA invites comments on this finding.
2. Certificate Requirements
    In addition, 49 U.S.C. 44807(b)(2) requires the Administrator to 
determine whether the UAS operations subject to this proposed rule pose 
a safety risk sufficient to require airworthiness certification or 
airman certification.
i. Airworthiness Certification
    The Administrator has determined that airworthiness certification 
should not be required for the UAS subject to this proposed rule. As 
discussed in section X of this preamble, the proposed airworthiness 
acceptance regulatory framework would prevent incidents like loss of 
flight or control stemming from factors such as structural integrity, 
software and hardware functionality, performance attributes, and 
operational factors. Specifically, the proposed design and performance 
standards require the UAS to handle all expected flight and ground 
stresses during its operations without compromising the UAS's safe 
operation.
    From a risk perspective, FAA considers UAS operations under 
proposed part 108 fall between part 107 small UAS and aircraft with a 
SAC.\6\ Part 108, which encompasses BVLOS operations, presents higher 
risks than part 107 due to the potential for airspace conflicts with 
other users, operation of larger aircraft, operation over densely 
populated areas, and riskier operational use cases such as package 
delivery. The intrinsic risks associated with routine BVLOS operations 
of UAS require mitigations beyond what is required under part 107. 
Conversely, the SAC process would require a higher level of initial FAA 
oversight than would be necessary for BVLOS operations envisioned under 
part 108, because it would require FAA to conduct an airworthiness 
inspection of each UAS produced. Proposed part 108 airworthiness 
acceptance requirements described in section X aim to mitigate those 
risks and promote the safety of people on the ground and other airspace 
users. FAA determined the requirements proposed in section X are 
appropriate for UA without passengers or crew where airworthiness 
certification under 14 CFR part 21 is more appropriate to ensure the 
safety of those on board those aircraft.
---------------------------------------------------------------------------

    \6\ FAA has proposed changes to the SAC process to enable 
enhancements in safety and performance and to increase privileges 
under a number of sport pilot and light-sport aircraft rules in the 
Modernization of Special Airworthiness Certification notice of 
proposed rulemaking, 88 FR 47650 (July 24, 2023).
---------------------------------------------------------------------------

    Consequently, the regulatory and certification demands for BVLOS 
operations are more stringent than those for part 107 but less so than 
for light-sport aircraft. This intermediate positioning supports a 
balance between flexibility and safety. Therefore, the Administrator 
finds, pursuant to Sec.  44807(b)(2), that airworthiness certification 
would be unnecessary for the UAS subject to this proposed rule. FAA 
invites comments on this finding.
ii. Airman Certification
    The Administrator has also determined that airman certification

[[Page 38217]]

should not be required because certification is not consistent with the 
envisioned UAS and operations subject to this proposed rule. On manned 
aircraft, the pilot is responsible for operational control and safety 
of flight from the flightdeck. Pilot responsibilities on the flightdeck 
are constructed around pilot control, including seeing and avoiding 
other aircraft, interacting with air traffic control (ATC), and 
monitoring instruments and displays. With the increasing autonomy of 
UAS, particularly those anticipated for use under this proposal, the 
role of the pilot has and will continue to decrease. The UAS industry 
has increasingly come to rely on technology, rather than human 
interaction or intervention, to ensure safe operation. Industry 
reliance on technology rather than human interaction is driven in part 
by the fact that UAS do not carry responsible persons that can control 
and ensure the safety of flight from within the aircraft.
    As discussed herein, the proposed personnel provisions serve to 
provide personnel with the knowledge, training, and skills to operate 
the anticipated UAS safely under this proposed rule. In addition, other 
mitigating provisions of this rule would ensure that the risk posed by 
the UAS is offset by the design requirements (section XI of this 
preamble) and general operating requirements (section VI of this 
preamble) that further mitigate risk as operations increase in 
complexity. Therefore, the Administrator finds, pursuant to 49 U.S.C. 
44807(b)(2), that airman certification would be unnecessary for the UAS 
and operations subject to this proposed rule. FAA invites comments on 
this finding.

B. Authority for Regulating Third-Party Services

    Section 932 of FAA Reauthorization Act of 2024, Public Law 118-63, 
directs the FAA Administrator to establish procedures, including 
rulemaking, to approve third-party service suppliers. Those would 
include suppliers of UTM services to support the safe integration and 
commercial operation of UAS. In accordance with this provision, the 
Administrator must ensure, to the maximum extent practicable, that 
industry consensus standards are included as an acceptable means of 
compliance for third-party services. Consistent with this direction 
from Congress, FAA proposes to regulate third-party service suppliers 
and the use of third-party services.
    FAA also has authority to regulate air agencies under chapter 447 
of title 49, U.S.C. FAA may issue certificates to air agencies (49 
U.S.C. 44702) as well as ``examine and rate'' air agencies (49 U.S.C. 
44707). Congress defined air agencies to include certain aviation 
schools (Sec.  44707(1)), repair stations (Sec.  44707(2)), and ``other 
air agencies the Administrator decides are necessary in the public 
interest'' (Sec.  44702(3)). FAA proposes to regulate automated data 
service providers that support aircraft operations using a distributed 
computational system under this authority to regulate air agencies.\7\ 
Regulation of these automated data service providers is necessary in 
the public interest. In 49 U.S.C. 40101(d), Congress identified the 
following matters for FAA to consider as being in the public interest: 
``assigning, maintaining, and enhancing safety and security'' and 
``encouraging and developing civil aeronautics, including new aviation 
technology.'' Enabling automated data services to mitigate the 
potential risk that BVLOS operations could pose to the NAS would 
enhance aviation safety and aid in the development of new aviation 
technology.
---------------------------------------------------------------------------

    \7\ 49 U.S.C. chapter 447.
---------------------------------------------------------------------------

    For further discussion on the legal authority of third-party 
services and FAA rulemaking procedure for regulating such services, see 
section XIII.B of this preamble.

C. Authority for Regulating Noise

    In 49 U.S.C. 44715, FAA has the responsibility to ``protect the 
public health and welfare from aircraft noise.'' This responsibility 
came with broad authority to adopt regulations and noise standards to 
carry out this mandate. Historically, FAA has applied the part 36 noise 
certification regulations when the agency issued type certificates as 
provided in Sec.  44715(a)(3).
    However, FAA has authority to apply noise standards for aircraft 
with or without type certificates. As such, FAA is proposing in this 
rule to exercise that authority and use a regulatory approach for UAS 
operating under part 108 that would apply noise requirements as part of 
airworthiness acceptance.
    For further discussion on the legal authority of FAA to regulate 
noise as part of the airworthiness acceptance process, see section 
XII.A of this preamble.

D. Transportation Security Administration Authority

    The security of the nation's transportation systems is vital to the 
economic health and security of the United States. Ensuring 
transportation security while promoting the movement of legitimate 
travelers and commerce is a critical counter-terrorism mission assigned 
to TSA.
    Following the attacks of September 11, 2001, Congress created TSA 
under the Aviation and Transportation Security Act (ATSA) and 
established the agency's primary federal role to enhance security for 
all modes of transportation. The scope of TSA's authority includes 
assessing security risks, developing security measures to address 
identified risks, and enforcing compliance with these measures. TSA has 
broad regulatory authority to issue, rescind, and revise regulations as 
necessary to carry out its transportation security functions.\8\
---------------------------------------------------------------------------

    \8\ See, e.g., 49 U.S.C. 114(l)(1), 44903(b).
---------------------------------------------------------------------------

III. Background

A. Related FAA and Department of Transportation (DOT) Actions

    FAA began developing its regulatory framework for UAS in 2012 after 
Congress passed the FAA Modernization and Reform Act of 2012 (Pub. L. 
112-95). Section 333 of Public Law 112-95 directed the Secretary of 
Transportation to determine which types of UAS do not create a hazard 
to users of the NAS or the public or pose a threat to national 
security. Based on such findings, Congress directed the Secretary to 
establish requirements for the safe operation of such UAS. Since the 
passage of Public Law 112-95, FAA has been incorporating limited UAS 
operations into the NAS using a phased, incremental, and risk-based 
approach to enable UAS operations through narrowly tailored 
regulations, individual grants of regulatory relief through FAA 
exemptions and waivers, and by authorizations based on discrete 
statutory authorities. Understanding the steps FAA has already taken to 
integrate UAS into the NAS is critical to understanding why these 
proposed regulations to enable scaled BVLOS operations is the 
appropriate next step in this phased approach.
1. Registration and Marking Requirements for Small Unmanned Aircraft
    On December 16, 2015, FAA published the Registration and Marking 
Requirements for Small Unmanned Aircraft interim final rule 
(Registration Rule).\9\ The Registration Rule, which established 14 CFR 
part 48, enabled a simplified, web-based registration

[[Page 38218]]

system for small UA,\10\ as an alternative to the registration 
requirements found in 14 CFR part 47. The Registration Rule required 
all small UAS owners to register under the existing part 47 or 48 by 
March 31, 2016.
---------------------------------------------------------------------------

    \9\ Registration and Marking Requirements for Small Unmanned 
Aircraft interim final rule, 80 FR 78645 (Dec. 16, 2015).
    \10\ ``Small UAS'' is defined in 14 CFR 1.1 as an unmanned 
aircraft weighing less than 55 pounds on takeoff, including 
everything that is on board or otherwise attached to the aircraft.
---------------------------------------------------------------------------

    The Registration Rule also established marking requirements for 
small UA. In accordance with that rule, all small UA must display a 
unique identifier. Each small UA operated in accordance with part 107 
must display a unique registration number, visible on inspection of the 
small UA.
2. Operation and Certification of Small Unmanned Aircraft Systems
    On June 28, 2016, FAA and DOT jointly published the Operation and 
Certification of Small Unmanned Aircraft Systems final rule (the 2016 
Final Rule) establishing 14 CFR part 107.\11\ Part 107 created a 
regulatory structure allowing small UAS to operate within specified 
parameters without requiring airworthiness certification, exemption, or 
waiver. Part 107 established operational rules for certain routine 
civil operation of small UAS in the NAS in a safe manner. To mitigate 
risk to people and property on the ground and to other users of the 
airspace, the 2016 Final Rule established operating limitations for 
small UAS such as limiting operations to daylight and civil twilight, 
within confined areas, and within visual line-of-sight. The 2016 Final 
Rule also established airspace restrictions, remote pilot 
certification, visual observer requirements, and operating limitations. 
Finally, the 2016 Final Rule included a waiver provision \12\ allowing 
individual operators to deviate from certain specifically identified 
operating limitations if FAA found the applicant could safely conduct 
the proposed operation under the terms of the COA.
---------------------------------------------------------------------------

    \11\ Operation and Certification of Small Unmanned Aircraft 
Systems final rule, 81 FR 42064 (Jun. 28, 2016).
    \12\ See 14 CFR 107.200 and 107.205.
---------------------------------------------------------------------------

3. Operation of Small Unmanned Aircraft Systems Over People
    Published by FAA on January 15, 2021, the Operation of Small 
Unmanned Aircraft Systems Over People final rule \13\ allowed routine 
operations over people in accordance with part 107 and routine 
operations at night under certain conditions without a waiver or 
exemption. Under regulations implemented by the rule, the requirements 
for routine operations over people vary depending on the level of risk 
that operations of small UA present to people on the ground. In the 
Operation of Small Unmanned Aircraft Systems Over People final rule, 
FAA established four categories of permissible operations over people 
based on the risk of injury they present: Category 1, Category 2, 
Category 3, and Category 4. Under this rule, operations over people (in 
accordance with the categories) are permitted with small UA that have 
an airworthiness certificate.
---------------------------------------------------------------------------

    \13\ Operation of Small Unmanned Aircraft Systems over People 
final rule, 86 FR 4314 (Jan. 15, 2021). Operation of Small Unmanned 
Aircraft Systems Over People; Delay of Effective Date; Correction 
final rule, 86 FR 11623 (Feb. 26, 2021); Operation of Small Unmanned 
Aircraft Systems Over People; Delay; Withdrawal; Correction final 
rule, 86 FR 3630 (Mar. 10, 2021).
---------------------------------------------------------------------------

4. External Marking Requirement for Small Unmanned Aircraft
    The External Marking Requirement for Small Unmanned Aircraft 
interim final rule (External Marking Rule, 2019) was published on 
February 13, 2019.\14\ The External Marking Rule requires small UA 
owners to display the unique identifier assigned by FAA upon completion 
of the registration process (registration number) on an external 
surface of the aircraft. Small UA owners are no longer permitted to 
enclose the FAA-issued registration number in a compartment on the 
aircraft, such as inside of a battery compartment.
---------------------------------------------------------------------------

    \14\ External Marking Requirement for Small Unmanned Aircraft 
interim final rule, 84 FR 3669 (Feb. 13, 2019).
---------------------------------------------------------------------------

5. Remote Identification of Unmanned Aircraft
    The Remote Identification of Unmanned Aircraft final rule (Remote 
ID Final Rule) was published on January 15, 2021.\15\ The Remote ID 
Final Rule requires that UA broadcast certain identification, location, 
and performance information while in-flight. The remote identification 
of UA is necessary to ensure public safety and the safety and 
efficiency of the NAS. Remote identification provides airspace 
awareness to FAA, national security agencies, law enforcement entities, 
and other government officials. The broadcasted information can be used 
to distinguish compliant airspace users from those potentially posing a 
safety or security risk. The Remote ID Final Rule applies to UA flown 
for both recreational and commercial purposes. It allows operators to 
request authorization to operate without remote identification for 
aeronautical research and other limited purposes. UA manufactured for 
operation in the NAS are subject to the production requirements of the 
Remote ID Final Rule. There are limited exceptions in the Remote ID 
regulations that allow manufacturing UA without remote identification, 
including home-built UA and United States Government UA, amongst 
others.
---------------------------------------------------------------------------

    \15\ Remote Identification of Unmanned Aircraft final rule, 86 
FR 4390 (Jan. 15, 2021); Remote Identification of Unmanned Aircraft; 
Delay final rule, 86 FR 13629 (Mar. 10, 2021).
---------------------------------------------------------------------------

6. Modernization of Special Airworthiness Certification Notice of 
Proposed Rulemaking and the Safety Continuum
    On July 24, 2023, FAA published the Modernization of Special 
Airworthiness Certification (MOSAIC) NPRM.\16\ The MOSAIC NPRM proposed 
enabling enhancements in safety and performance and would increase 
privileges under several sport pilot and light-sport aircraft rules. 
The proposed language in the MOSAIC NPRM would also expand the types 
and characteristics of aircraft that sport pilots may operate. The 
proposed changes would increase the suitability of light-sport category 
aircraft for flight training, limited aerial work, and personal travel. 
As the MOSAIC NPRM notes, FAA is updating the requirements for light-
sport aircraft due to a developed understanding about the purposes and 
flexibilities of light sport aircraft. This development is framed in 
the context of the safety continuum. As noted in the MOSAIC NPRM, FAA 
bases the rigor of certification requirements and operational 
limitations on a safety continuum that looks at public exposure to risk 
for each aircraft and operation. As the risk increases due to increased 
operating privileges and aircraft capability, so do the requirements 
and corresponding rigor of requirements and procedures for aircraft and 
airman certification.\17\
---------------------------------------------------------------------------

    \16\ Modernization of Special Airworthiness Certification notice 
of proposed rulemaking, 88 FR 47650 (Jul. 24, 2023).
    \17\ 88 FR 47653.
---------------------------------------------------------------------------

    The safety continuum represents the targeted level of safety 
because of FAA regulation, guidance, and oversight, which changes based 
on risk and societal expectations of safety. FAA uses the safety 
continuum to determine the appropriate level of regulatory oversight 
for a variety of aircraft, from small UAS to large transport category 
aircraft. The differing targeted level of safety balances the needs of 
the flying public, applicants, and operators while facilitating both 
the advancement of safety and the encouragement of technological 
innovation.

[[Page 38219]]

    Light-sport aircraft appear at the low end of the safety continuum 
for manned operations because of its aircraft design and recreational 
use. As a result, there is less FAA oversight. Given there is no pilot 
nor passengers on board UAs, FAA has decided UA operations involve less 
risk and should fall lower on the safety continuum than light sport 
aircraft. Therefore, UAS operations under parts 107 and 108 are 
positioned on the lower end of the safety continuum and FAA is 
proposing a level of oversight for part 108 operations are positioned 
between the oversight for part 107 small UAS and MOSAIC aircraft. The 
reasons for this placement and for more information as to risk, please 
see section III.A of this preamble.

B. Use of Exemptions, Type Certificates, and Waivers

    The intent of this proposed rule is to provide a predictable, 
stable, and transparent regulatory construct that enables scaled BVLOS 
operations. Presently, UAS operators looking to conduct BVLOS 
operations require some level of regulatory relief by way of exemption 
or waiver.
1. Exemptions for UAS BVLOS operations
    The exemption process has proven to be a useful tool for FAA to 
enable operations that cannot be conducted under part 107, particularly 
for operations using UA weighing 55 pounds or more.\18\ However, 
operating by exemption often requires navigating a labyrinth of 
regulations designed for both manned and unmanned aviation to determine 
from which regulations exemption should be sought to operate UAS BVLOS. 
Each exemption is specific to the operation that the petitioner is 
pursuing, but typically the exemptions include relief from certain 
requirements of parts 91 and 135 that are not compatible with UAS 
operations. This section describes the history of using the exemption 
process for UAS operations and what the exemption process requires. 
This background is intended to help draw out how this rulemaking will 
move UAS operations from the limits of ``enablement though exemption'', 
which requires case-by-case assessment and contributes to the current 
``patchwork'' of rules and exemption precedents that today's operators 
rely on, to ``enablement by rule'', in which a right-size regulatory 
framework could streamline how FAA enables operation, manufacture, and 
supporting services of BVLOS UAS.
---------------------------------------------------------------------------

    \18\ The 55 lb. weigh limit for UAS operating under part 107 is 
not waivable under Sec.  107.205.
---------------------------------------------------------------------------

    In the early 2010s, prior to the development and implementation of 
the regulatory framework of part 107 (the 2016 Final Rule), FAA relied 
on the flexibility provided in section 333 of Public Law 112-95 to 
allow certain UAS operations in the NAS by way of the FAA exemption 
process. Under the section 333 authority, the Secretary of 
Transportation was granted the authority to determine if an 
airworthiness certificate was necessary for safe operation of a UAS. 
While this statutory flexibility permitted FAA to issue thousands of 
exemptions, the regulatory framework resulting from the 2016 Final Rule 
created a much more stable, transparent, and scalable system for early 
civil UAS operations and this process of evolving from operation by 
exemption to operation by rule is a precursor to FAA's objectives 
through this proposed rule.
    Section 347 of the FAA Reauthorization Act of 2018 (Pub. L. 115-
254) granted the Secretary the authority to determine, using a risk-
based approach, which UAS may operate safely in the NAS. Congress 
further extended this discretionary authority to determine if an 
airworthiness certificate was necessary and clarified that the 
Secretary may determine if an airman certificate under section 44703 
was necessary. This authority, codified at 49 U.S.C. 44809, was further 
extended in the FAA Reauthorization Act of 2024.\19\ The FAA 
Reauthorization Act of 2018 also established an additional avenue for 
limited recreational operations under 49 U.S.C. 44809.
---------------------------------------------------------------------------

    \19\ Per updates to 49 U.S.C. 44807 as provided by Sec.  927 of 
FAA Reauthorization Act of 2024 (Pub. L. 118-63), the authority to 
determine if certain UAS are safe for operation the NAS rests with 
the Administrator the of FAA rather than with the Secretary of 
Transportation.
---------------------------------------------------------------------------

    Section 44807 grants the Administrator of FAA the authority to use 
a risk-based approach to determine if certain UAS may operate safely in 
the NAS on a case-by-case basis. The requirements for petitioning for 
an exemption are codified in 14 CFR part 11. Under 14 CFR 11.15, a 
petition for exemption is a request to FAA by an individual or entity 
(``petitioner'') asking for relief from the requirements of a 
regulation. Under 14 CFR 11.81, petitioners must include the following 
information in their petitions for exemption: name, mailing address, 
and other contact information (such as email or fax number); the 
specific section or sections of 14 CFR from which they are seeking 
exemption; the extent of relief that is being sought and the reason for 
seeking relief; the reasons why granting this request would be in the 
public interest, that is, how this exemption would benefit the public 
as a whole; the reasons why granting the exemption would not adversely 
affect safety, or how the exemption would provide a level of safety at 
least equal to that provided by the rule from which exemption is 
sought; a summary that FAA can publish in the Federal Register that 
states the rule from which the exemption is sought along with a brief 
description of the nature of the exemption sought; any additional 
information, views, or arguments available to support the exemption 
request; and, if a petitioner wants to exercise the privileges of their 
exemption outside of the U.S., the reason why the petitioner needs to 
do so.
    FAA recommends that the petitioner review all FAA guidance to 
ensure that the petition includes all necessary information, if 
relevant, including concept of operations, operations manual, emergency 
procedures, checklists, maintenance manual, training program, flight 
history (hours, cycles, accidents), and a safety risk analysis.\20\ The 
safety risk analysis is required for all complex operations for any 
proposal that includes, but is not limited to, flight over or in the 
proximity of people, flight beyond visual line of sight, operation of 
multiple UAS, operations from a moving vehicle, package delivery, part 
135 operations, or ground speeds. Guidance for the safety risk analysis 
can be found in FAA Order 8040.4, Safety Risk Management Policy, and 
FAA Order 8040.6, UAS Safety Risk Management Policy.
---------------------------------------------------------------------------

    \20\ FAA, Section 44807: Special Authority for Certain Unmanned 
Aircraft Systems (Mar. 20, 2024), available at www.faa.gov/uas/advanced_operations/certification/section_44807.
---------------------------------------------------------------------------

    FAA has issued thousands of exemptions using the 49 U.S.C. 44807 
authority described herein.\21\ Many of

[[Page 38220]]

these exemptions permit the use of UAS for agricultural operations, 
including thousands of exemptions enabling agricultural operations with 
UAS over 55 pounds. Agricultural spraying operations comprise the vast 
majority of exemptions for UAS above 55 pounds, with over 1,700 
operator certificates issued for agricultural operations at the time of 
publication of this proposed rule. FAA-issued exemptions also include 
advanced UAS operations reflected in four precedent-setting exemptions 
issued in fall of 2023 expanding BVLOS operational capabilities and 
supporting the Unmanned Traffic Management Operational Evaluation.\22\ 
FAA has also issued several exemptions for UAS operators operating 
under part 135. Upon obtaining their exemption(s), operators must then 
seek operational approval, typically by obtaining an operating 
certificate under 14 CFR part 135 or 137, depending on the operation 
type.
---------------------------------------------------------------------------

    \21\ Prior to the finalization of the 2016 Final Rule, FAA had 
granted numerous exemptions to unmanned aircraft operators for 
purposes such as experimental operations, agricultural operations, 
BVLOS and other various use-case applications. These exemptions were 
granted with minimal Part 61 pilot certification requirements to the 
remote pilot-in-command. Examples include unmanned aircraft 
agricultural operations only requiring the remote pilot-in-command 
to possess a private pilot certificate or even in later cases a 
minimum of remote pilot certificate, as opposed to similar 
operations with manned aircraft that require a commercial pilot 
certificate. The 2016 Final Rule obviated the need for exemptions 
for this particular relief for UA under 55 pounds with the 
establishment of a part 107 remote pilot certificate but did not 
extend to UA weighing 55 pounds or more. The first exemption to 
substitute a part 61 commercial pilot certificate with a part 107 
remote pilot certificate with additional training requirements under 
these circumstances was to DroneSeed Co., Exemption No. 17936. FAA 
subsequently issued several grants of exemption allowing the use of 
a remote pilot certificate for commercial operations with UA above 
55 pounds, although requiring a second-class medical certificate. In 
November 2022, FAA issued a grant of exemption to Amazon Prime Air 
permitting them to conduct BVLOS operations with a UA weighing 55 
pounds or more and requiring the pilot-in-command to hold a part 107 
remote pilot certificate with a third-class medical certificate, 
Exemption No. 18601B.
    \22\ See Phoenix Air Unmanned, LLC, Exemption No. 20973, 
Regulatory Docket No. FAA-2023-1827, available at 
www.regulations.gov/document/FAA-2023-1827-0009; uAvionix 
Corporation, Exemption No. 21097, Regulatory Docket No. FAA-2022-
0921, available at www.regulations.gov/document/FAA-2022-0921-0013; 
Zipline International, Inc. Exemption No. 19111B, Regulatory Docket 
No. FAA-2020-0499, available at www.regulations.gov/document/FAA-2020-0499-0033; UPS Flight Forward, Exemption No. 18339D, Regulatory 
Docket No. FAA-2019-0628, available at www.regulations.gov/document/FAA-2019-0628-0029.
---------------------------------------------------------------------------

    Exemptions are issued on a case-by-case basis and each exemption 
petition is individually assessed by FAA. This process can be time and 
resource-intensive for operators. This proposed rule is intended to 
level the playing field for operators by offering a well-defined and 
purpose-built set of regulations for the operation, manufacture, and 
supporting services for BVLOS UAS operations. Furthermore, this 
proposed rule should foster innovation and growth among U.S. businesses 
in this market and simultaneously allow these businesses to serve a 
larger U.S. customer base.
2. Type Certification for UAS
    Furthermore, FAA also allows UAS manufacturers to pursue type 
certification for their UAS. However, the type certification process 
was not designed for UAS, which have shorter expected lifespans than 
manned aircraft, do not carry people, and are redesigned easily and 
often by manufacturers. As such, the type certification pathway may not 
be the most appropriate path for most of the operational uses 
envisioned for these aircraft. Like the exemption process, operators 
using a type certificated UAS must then seek operational approval, 
typically under 14 CFR part 135 or 137 depending on the operation type.
3. Current Use of Waivers for UAS
    In addition, FAA continues to use the flexibility of the waiver 
process in issuing waivers for more complex operations under part 107. 
FAA has issued thousands of waivers since the 2016 Final Rule. Since 
the Operation of Small Unmanned Aircraft Over People final rule 
eliminated the need for most night waivers, the most common types of 
waivers granted in recent years have been for altitude limitations, 
BVLOS operations, operation of multiple UA, and operations over people. 
Waivers are processed faster than exemptions and submission and 
approval of them has improved as UAS operators have become more 
familiar with the appropriate safety cases. FAA recognizes the 
flexibility that comes with waivers and, as noted in various sections 
below, many of the proposed requirements of part 108 are subject to 
waiver.

C. Beyond Visual Line of Sight Aviation Rulemaking Committee

    On June 8, 2021, FAA established the UAS Beyond Visual Line-of-
Sight Operations ARC with the goal of providing recommendations to FAA 
for performance-based regulatory requirements to normalize safe, 
scalable, and economically viable UAS BVLOS operations that are not 
receiving the provisioning of Air Traffic Management (ATM) 
services.\23\ This ARC took a holistic approach in recommending a 
performance-based regulatory framework for BVLOS operations.
---------------------------------------------------------------------------

    \23\ FAA, UAS Beyond Visual Line-of-Sight Operations Aviation 
Rulemaking Committee, Aviation Rulemaking Committee Charter (Jun. 8, 
2021), available at www.faa.gov/regulations_policies/rulemaking/committees/documents/media/UAS%20BVLOS%20ARC%20Charter%20(eff.%206-
8-2021).pdf.
---------------------------------------------------------------------------

    FAA requested that, at a minimum, the ARC's recommendations clearly 
address requirements to support the following concept of operations 
(ConOps): long-line linear infrastructure inspections, industrial 
aerial data gathering, small package delivery, and precision 
agriculture aircraft operations, including crop spraying. The ARC did 
not specifically address aircraft or operations carrying passengers or 
crew, nor did it address the integration of operations for which ATM 
services are being provided.
    The ARC's final report was submitted to FAA on March 10, 2022.\24\ 
In this report, the ARC provided an extensive list of recommendations 
to FAA. Overall, the ARC recommended that FAA set an acceptable level 
of risk for UAS that is consistent across all types of operations being 
performed. The ARC also recommended a series of modifications to the 
right-of-way rules in Low Altitude Shielded Areas (within 100 feet of a 
structure or critical infrastructure as defined in 42 U.S.C. 5195c) and 
in Low Altitude Non-Shielded Areas (below 400 feet above ground level 
(AGL)) to accommodate UAS operations. The ARC's report provided 
comprehensive recommendations that the UAS industry argued would enable 
BVLOS operations by regulation, including package delivery by UAS, in a 
safe and economically viable manner. In addition, it provided 
recommendations for developing a regulatory approach to enable the use 
of third-party services to support UAS BVLOS operations.\25\ As 
discussed throughout this preamble, FAA considered the recommendations 
provided by the BVLOS ARC in developing this proposed framework.
---------------------------------------------------------------------------

    \24\ Unmanned Aircraft Systems Beyond Visual Line of Sight 
Aviation Rulemaking Committee Final Report (``BVLOS ARC Report'') 
(Mar. 10, 2022), available at www.faa.gov/regulations_policies/rulemaking/committees/documents/index.cfm/document/information/documentID/5424.
    \25\ Section XIII of this preamble discusses the ARC 
recommendation regarding third-party services in greater detail.
---------------------------------------------------------------------------

D. BVLOS Operations and International Leadership

    Establishing a regulatory framework for BVLOS operation that 
enables several valuable use cases would establish the U.S. as a global 
leader in UAS operations. Home of the Wright Brothers and the Chicago 
Convention, the U.S. has long been a leader in aviation and has claimed 
many firsts in this industry including the first powered airplane, the 
home of the pilot who flew the first solo transatlantic flight, and the 
first pilot to break the sound barrier.\26\ For UAS, however, the

[[Page 38221]]

United States has strong peers competing for leadership in this space. 
Globally, several countries have taken significant steps to enable 
BVLOS operations including China, the United Kingdom, Ireland, 
Australia, Japan, and Rwanda.\27\ Key to other countries' successes is 
that these other countries have provided the UAS industry with a clear 
regulatory framework that facilitates the scaling of BVLOS operations.
---------------------------------------------------------------------------

    \26\ Vaughn College, Greatest First Flights in Aviation History 
in Honor of Aviation History Month (Nov. 14, 2019), available at 
www.vaughn.edu/blog/greatest-first-flights-in-aviation-history-in-honor-of-aviation-history-month/.
    \27\ Commercial Drone Alliance, U.S. Global Leadership in 
Aviation at Stake: Scaled BVLOS UAS Operations Around the World 
(Nov. 27, 2024).
---------------------------------------------------------------------------

    There are several recent examples of countries advancing the 
integration of UAS operations into their airspaces, including BVLOS 
operations. In June of 2023, Canada's Minister of Transport announced 
standardized BVLOS rules for small and medium drones.\28\ In 2021, the 
European Aviation Safety Administration (EASA) adopted three 
regulations that together create the conditions necessary for both 
drones and manned aircraft to operate safely and has begun the gradual 
implementation of U-space, a type of airspace designated for safely 
integrated operation of manned and unmanned aircraft.\29\ The U-space 
approach provides cooperative airspace for manned and unmanned aircraft 
where the manned aircraft are equipped with technology to enable 
sharing airspace with the UAS. Australia and the EU have also published 
guidance for BVLOS operators seeking to fly using the specific 
operations risk assessment (SORA) framework developed by the Joint 
Authorities for Rulemaking on Unmanned Systems (JARUS).\30\ In 
Shenzhen, China, a commercial drone company made over 100,000 drone 
deliveries in 2022, demonstrating UAS logistics at scale.\31\ In 
Rwanda, UAS are regularly deployed to transport blood and medicines to 
hospitals in remote regions and these programs have existed as early as 
2016.\32\
---------------------------------------------------------------------------

    \28\ Minister of Transport Announces Canada's first proposed 
drone safety regulations for beyond visual line-of-sight operations, 
Transport Canada (Jun. 23, 2023), available at www.canada.ca/en/
transport-canada/news/2023/06/minister-of-transport-announces-
canadas-first-proposed-drone-safety-regulations-for-beyond-visual-
line-of-sight-operations.html.
    \29\ Drones: Commission adopts new rules and conditions for 
safe, secure and green drone operations, Directorate-General for 
Mobility and Transportation, European Commission (Apr. 22, 2021), 
available at transport.ec.europa.eu/news-events/news/drones-
commission-adopts-new-rules-and-conditions-safe-secure-and-green-
drone-operations-2021-04-22_en.
    \30\ See European Aviation Safety Agency, Specific Category--
Civil Drones, available at www.easa.europa.eu/en/domains/drones-air-
mobility/operating-drone/specific-category-civil-
drones#Registration%20of%20drone%20operators; see also Civil 
Aviation Safety Authority. Beyond visual line of sight operations, 
available atwww.casa.gov.au/drones/flight-authorisations/beyond-
visual-line-sight-operations#HowtorenewyourBVLOSflightapproval.
    \31\ See Zeyi Yang, Food delivery by drone is just part of daily 
life in Shenzhen, MIT Technology Review (May 23, 2023), available at 
www.technologyreview.com/2023/05/23/1073500/drone-food-delivery-shenzhen-meituan.
    \32\ See World Economic Forum, Medicines from the sky: how 
drones can save lives (Apr. 21, 2020), available at www.weforum.org/stories/2020/04/medicines-from-the-sky-how-a-drone-may-save-your-life/; see also World Economic Forum, Medicine from the Sky: 
Opportunities and Lessons Learned from Drones in Africa (Mar. 2021), 
available atwww3.weforum.org/docs/WEF_Medicine_from_the_Sky_2021.pdf.
---------------------------------------------------------------------------

    Foreign commercial aviation authorities (CAAs) enabling BVLOS 
operations through their own regulatory frameworks have fostered 
attractive environments for U.S. companies to expand their operations 
abroad. Today, U.S. companies are performing BVLOS operations abroad 
including in Italy, the U.K., Rwanda, and Japan.\33\ An overarching 
goal of this proposed rule is to encourage U.S. UAS companies to 
expand, innovate, and thrive domestically. A robust domestic UAS BVLOS 
operating environment could spur technological innovation, bolster U.S. 
aerospace manufacturing, provide services like package delivery to 
large swaths of the public, create skilled jobs, and secure the U.S. as 
a leader for UAS BVLOS operations, UTM, and UAS manufacturing.
---------------------------------------------------------------------------

    \33\ Italy Chosen For Amazon Prime Air Service In Late 2024, 
Intrieste (Oct. 20, 2023), available at www.intrieste.com/2023/10/20/italy-chosen-for-amazon-prime-air-service-in-late-2024/; Jack 
Daleo, Google's Wing to Use Drones to Fly Blood Between London 
Hospitals, Flying Magazine (Sep. 17, 2024), available at 
www.flyingmag.com/modern/googles-wing-to-use-drones-to-fly-blood-between-london-hospitals/; Jack Daleo, Rwanda launches nationwide 
drone delivery service with Zipline, Freight Waves (Dec. 15, 2022), 
available at www.freightwaves.com/news/rwanda-launches-nationwide-drone-delivery-service-with-zipline; Skydio Secures Nationwide BVLOS 
Approval for Remote Drone Operations In Japan, Skydio (Jun. 6, 
2023), available at www.skydio.com/blog/nationwide-bvlos-approval-for-remote-drone-operations-in-japan.
---------------------------------------------------------------------------

    Due to the relatively low cost of highly capable UAS technology, 
hundreds of thousands \34\ of new operators have entered the aviation 
community. This significant increase in the volume of UAS and UAS 
operators, as well as the rapid advancement of UAS technologies, has 
created significant opportunities--and challenges--for the integration 
of UAS into the United States airspace. These UAS in the NAS pose new 
challenges and risks but safety remains paramount for FAA. Through 
research, industry partnerships and feedback, and regulatory changes, 
FAA has made steady progress toward integrating UAS operations of 
varying complexity in the NAS in a safe, timely, and equitable manner.
---------------------------------------------------------------------------

    \34\ FAA, Drones by the Numbers, available at www.faa.gov/uas.
---------------------------------------------------------------------------

    In proposing this rule, FAA fully expects that the scope and 
frequency of UAS operations in the NAS would increase as BVLOS 
operations become normalized. FAA also appreciates that this proposal 
would open a new range of opportunities and possible concepts of 
operations for local communities interested in leveraging the benefits 
of UAS. FAA emphasizes that it is important for community leaders, 
local elected officials, and operators to ensure that the general 
public is informed and engaged in early planning discussions and that 
the individuals involved in planning the operation have a clear plan 
for how they will respond to the public's interest, questions, and 
concerns about operations occurring in local communities. FAA will 
support community leaders, local elected officials, and operators with 
responding to the public in its role as a regulator and encourages 
localities and operators to leverage best practices for community 
engagement in introducing UAS operations.\35\
---------------------------------------------------------------------------

    \35\ For more information regarding legal considerations 
applicable to state and local regulation of UAS, please see FAA and 
DOT's 2023 Fact Sheet, available at www.faa.gov/sites/faa.gov/files/State-Local-Regulation-of-Unmanned-Aircraft-Systems-Fact-Sheet.pdf.
---------------------------------------------------------------------------

IV. UAS Integration Into the NAS

A. Enabling UAS BVLOS Operations

    FAA has long intended to develop a regulatory framework for more 
advanced UAS operations, enabling the more complex operations that 
industry has successfully demonstrated at small scale using waivers and 
exemptions. Waivers, exemptions, and other authorizations, such as 
operations conducted at UAS Test Sites or through the Integration Pilot 
Program \36\ and BEYOND \37\ initiatives, have safely enabled numerous 
BVLOS operations including infrastructure inspection, package delivery, 
and surveillance. These operational advancements have occurred within 
the existing aviation regulatory framework, one that did not imagine 
the types of technologies that could, at a minimum, replace the human 
eye or that could coordinate operations through decentralized 
automation platforms. To realize the

[[Page 38222]]

next phase in UAS operations, FAA proposes a new set of regulations 
specific to UAS.
---------------------------------------------------------------------------

    \36\ Available at www.faa.gov/uas/programs_partnerships/completed/integration_pilot_program.
    \37\ Available at www.faa.gov/uas/programs_partnerships/beyond.
---------------------------------------------------------------------------

    UAS technology, as well as the various systems that support it, has 
advanced faster than the regulatory framework. Having clear regulations 
and guidance about how to operate BVLOS is essential for future 
integration of UAS. This rule proposes requirements for airworthiness 
acceptance, operating requirements, and a framework for automated data 
service providers to enable scalable, repeatable, and safe BVLOS 
operations.
    The airworthiness and operating requirements would reside in part 
108 of title 14 of the CFR, a new part that represents FAA's commitment 
to a regulatory framework that permits increasingly complex UAS 
operations while building on the knowledge gleaned from existing rules. 
The proposed requirements for automated data service providers would 
reside in new part 146. This proposed framework would provide assurance 
that operations can be conducted safely, but also within the 
appropriate position on the safety continuum. As discussed throughout 
this rule, FAA recognizes that type certification may not be the most 
appropriate regulatory regime for the safe operation of proposed part 
108 aircraft, nor may the airman certification structure of manned 
aviation be appropriate for these types of operations.
    Proposed part 108 would enable UAS BVLOS operations through design, 
procedural, and operational requirements. Operations traditionally 
accomplished through manned aviation could be executed more safely and 
at greater scale than currently conducted. In this context, UAS, using 
programmed paths managed by third-party services, operating BVLOS, can 
offer alternatives to manned aircraft to perform the same function 
safely. UAS can supplement tasks that would otherwise be accomplished 
by surface transportation or individuals, which could have a positive 
impact on safety. A UA can fly over crops distributing pesticide or 
fertilizer without the need for a person to fly a full-sized aircraft 
low to the ground and risk an accident or pilot exposure to chemicals. 
Enabling BVLOS operations could have a transformative impact on 
logistics. Life-saving medicine, equipment, or even human organs can be 
transported rapidly between points, without having to contend with 
traffic congestion, or requiring a pilot to fly a helicopter into a 
high-risk situation. Local regulatory authorities can use UAS to 
inspect the underside of bridges or check the integrity of the railroad 
tracks that crisscross the wide expanse of the United States, both more 
efficiently and more safely than is possible without UAS. UAS-based 
collection and analytics can inspect more energy production, 
transmission, and storage infrastructure per day compared to a manual, 
ground-based inspection, which significantly increases the opportunity 
to detect and remedy leaks and other issues.
    Through the proposed airworthiness acceptance process, operational 
and personnel frameworks, and standards for automated data service 
supply, the level of risk proposed in this rulemaking would be 
equivalent to the level of acceptable risk in part 107, but for more 
complex aircraft and operations. Part 107 notably did not require any 
airworthiness certification or design standards, instead fixing the 
weight at 55 pounds and relying on operating limitations to ensure safe 
operation. In the 2016 Final Rule, FAA acknowledged the biggest 
concerns for risk were the inability of a pilot to maintain safe 
separation from other aircraft and the possibility of a loss of control 
in flight due to a failure of the control link. The risk-based approach 
in part 107 has proven to be safe and effective for operations 
conducted within VLOS.
    As we have seen through existing operations that we have enabled 
through exemptions and waivers, the existing technological tools to 
enable these operations are generally already available, and need only 
a repeatable, scalable regulatory framework that would allow the 
various potential benefits that UAS BVLOS operations could provide to 
be realized. This can also be seen through the new and novel approaches 
FAA has seen implemented through special programs such as BEYOND. Under 
existing systems, operators can equip a UAS with technology that will 
detect other aircraft, both manned and unmanned, and program it to 
avoid other aircraft in a consistent, safe manner. Similarly, should a 
mechanical malfunction occur, the technology is able to avoid impacting 
people through pre-programmed flight responses. This use of technology, 
in combination with management of the areas within which the UAS 
operates, helps mitigate the risks involved in these operations, as 
described in this preamble.
    The regulations under this proposal would also ensure that 
operators address and manage cybersecurity risks. To that end, this 
proposed rule would require cybersecurity policies be in place for most 
operators. The security of computers and networked systems is an 
overarching goal. Operators under proposed part 108, with the limited 
exception of recreational operators, would be required to assess and 
monitor cybersecurity risks continuously and take appropriate 
precautions to protect their operations from being compromised on an 
ongoing basis.
    The part 107 framework for small UAS operations prioritized 
individual responsibility for operations, placing the burden of safe 
operations on the remote pilot in command. While there is merit in this 
approach, it does not always align with the way UAS are used, 
especially in a BVLOS operation. This proposed rule would place 
responsibility at a corporate level, utilizing flexible approaches to 
training, operations personnel duty assignment, and development of 
manuals, while also providing the flexibility to allow operators to 
make risk-based decisions to conduct operations safely. Under this 
proposed rule, the person exercising control over the operation would 
not be certificated by FAA. Instead, FAA proposes to require an 
operations supervisor who would act on behalf of the company and be 
responsible for the overall safety and security of the operation, 
including ensuring that operations are conducted within the parameters 
of the applicable requirements and that personnel are appropriately 
trained for their role. The position would also demand knowledge of the 
relevant regulatory requirements, as well as company procedures and the 
specific requirements associated with the UA used in their operations. 
In addition, this rule proposes the utilization of flight coordinators, 
if required by the aircraft design, who would have more direct 
involvement in the operation of a UA and would similarly require 
training in safe operation.
    This proposed rule is designed to assess and manage risks to people 
and property on the ground and other users in the NAS while allowing 
the growth of UAS operations. The main factors considered in assessing 
the risks are the industry-consensus standards that inform the design 
of the UAS, the weight, speed, and size of the UA, the environment it 
is operating in or over, technological mitigations to include strategic 
deconfliction, conformance monitoring, and DAA capabilities, and what, 
if anything, it is transporting.
    Under proposed part 108, many types of operations would take place 
over people. One significant risk factor for these operations would 
depend on the number of people the UA is operating over. Proposed part 
108 would address a variety of operating environments. To

[[Page 38223]]

present an accurate and consistent picture of population, FAA is 
proposing the use of LandScan, a Federally sponsored and freely 
accessible set of population data. LandScan provides a basis for 
operational categories to allow complex operations over areas with 
increased population density, with both technological and operational 
requirements to ensure continued safety.
    In proposed part 108, operations would be conducted primarily below 
400 feet AGL (unless authorized by the Administrator to go higher), and 
this rule would establish new requirements to allow for safe operations 
BVLOS in this more integrated airspace. UAS operating under part 108 
would be required to yield right of way to traffic broadcasting their 
position using Automatic Dependent Surveillance-Broadcast (ADS-B) Out 
equipment. Under proposed part 108, strategic deconfliction would be 
required for operations over certain populated areas, and operations in 
controlled airspace would require strategic deconfliction, conformance 
monitoring, and the ability to detect cooperative and non-cooperative 
aircraft in certain airspace classifications. Operators would need to 
be aware of factors such as the location, weather, obstacles, and other 
traffic to ensure safe operation, even as they may not be physically 
present at the flight operation.
    As discussed in section III.A.5 of this preamble, FAA is 
approaching airworthiness in the context of a safety continuum that 
considers exposure of the public to risk for each aircraft and 
operation. Whereas traditional manned aircraft generally require a type 
certification or special airworthiness certification to operate in the 
NAS, FAA is proposing a process that would ensure public safety while 
also being mindful of the level of appropriate rigor associated with 
the operational envelope of UA operating under proposed part 108. While 
type certification is appropriate for manned operations, it does not 
necessarily follow that the time, resources, or requirements for type 
certification are appropriate to allow safe operation of UAS under 
proposed part 108. With airworthiness acceptance and industry consensus 
standards, FAA is proposing a process that will provide a more time and 
resource appropriate avenue to allow more complex UAS operations while 
appropriately mitigating risk. FAA is also proposing changes that will 
streamline compliance with UAS noise requirements. FAA recognizes that 
a fast and efficient process is critical as the UAS technology is 
constantly changing. A particular model of UAS may only be produced for 
a matter of months before substantial changes occur and a new version 
is produced. A lengthy approval process would not only slow 
advancement, but the costs would be greater to implement design 
improvements. Thus, the airworthiness acceptance, as proposed under 
part 108, will allow the use of industry consensus standards and a 
streamlined acceptance process.
    Likewise, FAA proposes a streamlined approach for operations. An 
operator would apply for authorization to operate using a UA that holds 
an airworthiness acceptance. Proposed part 108 has a two-level 
framework that manages risk in an efficient manner: permits and 
certificates. A smaller-scale operator can apply for an operating 
permit, which could be issued with sufficient oversight in a prompt and 
efficient manner. For those operators wanting to expand by operating 
larger aircraft in size or number, operating over larger concentrations 
of people, or conducting higher risk or more complex operations, an 
operating certificate would be required. This certificate would be more 
akin to operating certificates in traditional aviation and would entail 
a higher level of interaction with FAA for both issuance and oversight 
of the certificate.
    FAA further proposes new part 146 to create requirements for the 
standards and establish FAA oversight of automated data service 
providers. As part 108 enables UAS BVLOS operation, data is critical to 
the safe and effective operation of these aircraft, as the ability to 
operate BVLOS is predicated on the fidelity and assurance of the data. 
To support the operational and airworthiness requirements of part 108, 
FAA proposes part 146 to enable those providing these services to 
obtain certification and defines minimum performance standards for 
those services using industry consensus standards. Proposed part 146 is 
essential for laying the groundwork for the next step for UAS 
operations and providing a service approval pathway that could be used 
to support other types of operations, both manned and unmanned, in the 
future. This proposal would ensure operators have options in the 
services that they use depending on their needs, while being assured 
that they meet a standard that will keep the public safe. And by 
keeping the regulation flexible, and allowing operators to choose the 
service they need, future technological innovations would be recognized 
while allowing choice by the part 108 operators and competition among 
the part 146 service providers.

B. Need for Automated Data Service Providers

    An automated data service provider is a person or company who 
provides an automated data service using a distributed computational 
system to support or manage aircraft operations, promoting safety and 
efficiency of the operation. Automated data service providers may or 
may not be directly involved in the aircraft operation but would 
nonetheless support the operation before or during its flight. 
Automated data service providers would add an important layer of safety 
and risk mitigation benefits to the operating requirements proposed in 
this rulemaking. To realize those benefits to scale, FAA proposes to 
regulate automated data service providers and their services under 
proposed part 146.\38\
---------------------------------------------------------------------------

    \38\ See section XIII of this preamble for further discussion on 
FAA's proposal to regulate automated data service providers and 
authorize their services.
---------------------------------------------------------------------------

    Not all automated data services and providers of those services 
would be subject to proposed part 146. Only those that provide services 
to support an aircraft operators' ability to comply with an FAA 
requirement by promoting the safety and efficiency of the operation 
would be subject to part 146. FAA would not, nor intends to, regulate 
an entity that does not fall under its purview; as such, providers of 
automated data services that are not provided to support an aircraft 
operators' ability to comply with an FAA requirement or do not impact 
NAS safety nor efficiency would not be enabled through proposed part 
146.\39\
---------------------------------------------------------------------------

    \39\ Strategic deconfliction is one example of an automated data 
service that would be promulgated under proposed part 146. Strategic 
deconfliction would significantly scale UAS BVLOS operations under 
proposed part 108. Using strategic deconfliction, a UAS operator can 
strategically deconflict flight paths, thereby operate safely in the 
NAS. In contrast, automated data services providers providing fleet 
management services to aircraft operators would not be regulated 
under proposed part 146. Fleet management services are used by 
operators to fulfill a business need, not a safety objective, thus 
would not be regulated under proposed part 146. For a detailed 
discussion on the scope and applicability of automated data services 
and providers of those services under proposed part 146, see section 
XIII.E of this preamble.
---------------------------------------------------------------------------

    FAA selected the term ``automated data service provider'' to avoid 
confusion with terms used to describe services provided by FAA's Air 
Traffic Organization, which are not subject to this rulemaking. In 
addition, in presentations and discussions, FAA personnel and industry 
stakeholders have also used terms such as ``third-party service 
suppliers'' and ``UTM

[[Page 38224]]

service providers.'' The term automated data service provider is 
intended to cover both of those terms. The selected term would also 
include persons and companies that self-provision their own services 
(often referred to as vertically integrated companies), as well as 
persons and companies that provide distributed services dependent on 
ground-based sensors or equipment--sometimes referred to as 
Infrastructure-as-a-Service. In addition, the term ``automated data 
service providers,'' and part 146 in general, may apply to companies 
that are new to aviation and market a specific product to UAS 
operators, such as mobile network operators that have a UAS-specific 
command-and-control (C2) link offering.\40\
---------------------------------------------------------------------------

    \40\ Under proposed part 146, all these terms referring to UTM 
servicers or third-party servicers and the providers of such 
services would fall within the umbrella term of automated data 
service provider. Whether the automated data services are self-
provided or outsourced to a third-party, any entity that provides 
automated data services to support an aircraft operation complying 
with an FAA regulation would be subject to proposed part 146 
regulations.
---------------------------------------------------------------------------

    Automated data services may fulfill a variety of purposes, 
including mitigating risk, depending on their exact functionality. For 
example, automated data services that provide strategic coordination 
for UAS operations reduce the risk of midair collision between UA, 
thereby reducing the risk of harm to people and property due to falling 
debris from that midair collision. Other kinds of automated data 
services may support operators' DAA responsibilities, including by 
providing surveillance information or avoidance maneuvering 
instructions that could be more comprehensive or accurate than those 
the operators may provide using their own systems. Automated data 
services may also help operators avoid controlled flight into terrain, 
or loss of control, by providing operators with specialized data before 
and during flight operations to manage a variety of risk factors.
    FAA recognizes that it might not be feasible for some UAS operators 
to provide all the services and functionality necessary to meet BVLOS 
safety requirements in-house. This could be for a variety of reasons, 
including resource and technical knowledge constraints. Automated data 
services may provide a cost-effective, safe, and scalable means for 
those UAS operators to meet some of the regulatory requirements in part 
108. As a result, automated data services that meet the minimum 
requirements proposed in this rule would provide a viable set of 
alternative solutions to ensure operational safety and regulatory 
compliance without placing undue restrictions or responsibilities on 
UAS operators.
    FAA expects that automated data service providers will deploy 
services to meet emerging demands and capabilities, some of which are 
yet to be developed. These services may be based on emerging industry 
standards that will develop to meet market demands. Recognizing the 
rapid pace of technological change, FAA proposes a flexible regulatory 
structure designed to enable the recognition of new services as future 
standards are designed. Section XIII of this preamble provides the 
framework for regulating automated data service providers and their 
services.

C. Definitions (Sec.  108.5)

    FAA proposes to add several definitions in Sec.  108.5 that are 
unique to operations conducted under proposed part 108. FAA is 
proposing definitions for AE, C2 link, conformance monitoring, DAA, 
flight coordinator, ground control station, hazardous material, life-
limited part, operational intent, operations personnel, package 
delivery, safe distance, strategic deconfliction, strategic conflict 
detection, strategic conflict resolution, and target average 
conformance. These terms have specific meanings and usage in part 108 
that may be unfamiliar to readers, or their usage in part 108 is 
specifically important to the new UAS framework. These definitions 
would help the public understand the context of how these terms are 
used and identify their specific usages throughout part 108. FAA 
invites comments on the use of the terms and the associated language 
used in the definitions, as well as if any definitions are not needed, 
or if any definitions should be added to the list. Discussion and 
further context for the definitions included in this section can be 
found in the pertinent sections of the preamble.

V. Part 108 General Requirements (Subpart A)

    Currently, most UAS operations in the United States fall under part 
107, which applies to small UAS operated within VLOS of the remote 
operator. Since larger and more complex UAS operations are not covered 
by part 107, nor are operations permitted beyond VLOS under part 107 
without a waiver, UAS operators continue to rely on requesting 
regulatory exemptions and waivers to allow them to conduct such 
operations. While FAA has utilized the flexibility of the existing 
structure broadly to permit increasingly complex and advanced UAS 
operations, the current regulatory framework impedes full integration 
of all operations into the U.S. airspace. FAA seeks to fulfill its 
regulatory responsibility of ensuring the safety and efficiency of the 
NAS by facilitating the increased integration of UAS into the NAS and 
realizing UAS operational benefits. Therefore, FAA proposes to enable 
complex UAS operations, specifically those conducted BVLOS of the 
operator, under the proposed structure of part 108.
    FAA understands that expanding UAS operations may introduce certain 
safety risks to the NAS. As part of addressing those safety risks, 
proposed part 108 would require new sets of processes and guidelines 
for UAS BVLOS operations, including requirements for UAS operators and 
maintenance personnel.
    Under this proposed rule, FAA would require all UAS operators to 
obtain either an operating permit or an operating certificate to 
conduct their UAS operations under this part. Operators without an 
operating permit or certificate would not be allowed to operate under 
proposed part 108. Under this proposed rule, whether a UAS operator 
applies for a part 108 operating permit or an operating certificate 
would depend on the scale and overall risk of their UAS operation. FAA 
expects that presenting UAS operators with those two options would 
cultivate a flexible approach for operators to obtain the necessary 
credentials to then be able to comply with the requirements of this 
proposed part.\41\
---------------------------------------------------------------------------

    \41\ See section VIII of this preamble for the process of 
obtaining a part 108 operating permit or certificate.
---------------------------------------------------------------------------

    Under this proposed rule, FAA would require operators who wish to 
conduct BVLOS operations using an operating permit to comply with 
subpart D of part 108. Likewise, operators who wish to conduct BVLOS 
operations using an operating certificate would be required to comply 
with subpart E of proposed part 108. For a discussion on the 
distinction between part 108 operating permits versus operating 
certificates, see section VIII of this preamble.
    Regardless of whether an operator holds an FAA-issued operating 
certificate or an FAA-issued operating permit, the proposed rule would 
require all part 108 operators to comply with the applicable operating 
rules under subpart B. Subpart B of proposed part 108 would prescribe 
the general rules of engagement that each operator would need to abide 
by in order to conduct UAS BVLOS operations under part 108, including 
preflight operating

[[Page 38225]]

requirements and regulations related to operating BVLOS over people. A 
further discussion on general operating rules is contained in section 
VI.B of this preamble. Lastly, proposed part 108 would also prescribe 
operating personnel requirements under subpart C, aircraft maintenance 
and alterations requirements under subpart F, and general procedural 
requirements--which includes inspection requirements and prohibitions 
against engaging in fraudulent or deceptive practices--under subpart A 
of the proposed part.\42\
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    \42\ For subpart A, General, see section V of this preamble; for 
subpart C, Operations Personnel, see section VII of this preamble; 
for subpart F, Maintenance and Alterations, see section IX of this 
preamble.
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A. Applicability (Sec.  108.1)

    Proposed Sec.  108.1 states that the requirements in proposed part 
108 would apply to any person \43\ who wishes to conduct UAS BVLOS 
operations in the NAS. Regarding operator requirements, as proposed in 
Sec.  108.1(a), the requirements of part 108 would apply to any person 
who (1) conducts, or intends to conduct, UAS BVLOS operations in U.S. 
airspace; (2) requests FAA issuance of an operating permit or an 
operating certificate; (3) performs maintenance on a UAS under an 
operating permit or certificate issued in accordance with this proposed 
part; (4) is involved in the design, manufacture, or production of UAS 
to be operating in accordance with part 108; (5) requests FAA 
airworthiness acceptance of a UAS in accordance with subparts G and H 
of this part; or (6) submits a voluntary consensus standard for 
acceptance or approval by FAA as a means of compliance for any 
provision of part 108.
---------------------------------------------------------------------------

    \43\ Per 14 CFR 1.1, a person is described as an individual or 
an entity, including a corporation, company, association, 
governmental entity, etc.
---------------------------------------------------------------------------

    In addition to noting who part 108 would apply to, FAA is also 
proposing specific exclusions from part 108 to delineate between the 
different regulations that UAS could be operated under. As proposed in 
Sec.  108.1(b), part 108 would not be applicable to any persons who 
choose to conduct UAS operations under 14 CFR part 107 or part 91.
    In addition, UAS operations conducted under the recreational flyer 
provisions of 49 U.S.C. 44809 would not be subject to this rulemaking. 
FAA anticipates that certain operations such as agricultural, package 
delivery, aerial surveying, photography, and flight testing currently 
conducted under waivers or exemptions to 14 CFR part 107, 91, or 135 
would transition to the operations under part 108 when their exemptions 
expire, and a reasonable transition can occur. For operations that 
would not fall within the proposed operating requirements of part 108, 
FAA believes those operators who are currently complying with FAA 
requirements to conduct safe and efficient UAS operations may continue 
to do so in accordance with their existing framework. Proposed part 108 
is not intended to fulfill the need for every type of operation related 
to UAS but rather would expand the types of operations that can be 
conducted under existing FAA regulations.
    FAA considered whether it would be appropriate to amend part 107 or 
to add an additional subpart to proposed part 108 to provide a 
regulatory path for certain VLOS operations with aircraft weighing 55 
pounds or greater with less automation than envisioned for 
airworthiness acceptance under this proposed part. Ultimately, FAA 
determined that adding a VLOS subpart to proposed part 108 would 
unnecessarily complicate the rule, as the risk mitigations under this 
proposed part rely on minimal human intervention to manage risk for 
BVLOS operations of larger aircraft with more complex operations. 
Operation of larger VLOS aircraft is a different risk set than what is 
being addressed in proposed part 108 and including it would add 
significant complexity to the structure of this proposed rule.
    In addition, at this time FAA has also opted out of expanding the 
VLOS rules under part 107 to add UAS weighing 55 pounds or greater 
because doing so could unnecessarily delay this proposed rule. The 55-
pound limit within part 107 functions as a significant risk mitigation 
in VLOS UAS operations and increasing the weight threshold would 
require FAA to either develop new risk mitigation measures or have 
sufficient data to establish that operations can be safely conducted at 
a higher weight threshold with no additional risk mitigation measures.
    Also, FAA is unable to gauge the public's need or desire for VLOS 
operations of aircraft weighing 55 pounds or greater where the operator 
cannot, or would be seriously disadvantaged to, meet the airworthiness 
or operational requirements proposed for part 108. While FAA 
anticipates that there may be business cases in which manually operated 
UA equal to or exceeding 55 pounds may be the best option, FAA expects 
these cases to be limited in number based on current operations. 
Further, FAA's intention with proposed part 108 is to create a 
regulatory framework for greatly expanded UAS operations with new and 
more capable UA, not to create a retrofit model for existing UAS with 
limited lifespans. Nevertheless, FAA recognizes that there are many 
existing UAS weighing 55 pounds or greater that are currently operating 
under an exemption to part 91 and those types of operations will be 
able to continue as they always have. FAA invites comments on whether 
there is a need or desire to expand part 107 for VLOS UAS operations 
weighing 55 pounds or greater. FAA also considered updating the 
relevant part 91 regulations \44\ that are not currently in alignment 
with operations of a UA and are frequently the cause of exemptions 
needed for operators choosing to operate under that part. FAA, however, 
has opted out of updating part 91 in this way because doing so could 
unnecessarily prolong this rulemaking. In addition, FAA is unsure how 
great the need would be for part 91 exemptions after the framework for 
part 108 is put into place. Finally, FAA invites comments on the 
assumptions above related to parts 91 and 107, and areas where FAA may 
be lacking information.
---------------------------------------------------------------------------

    \44\ FAA has granted relief from several regulations within 14 
CFR; notably, from Sec. Sec.  91.7(a), 91.109(a), 91.119(b), 
91.119(c), 91.121, 91.151(a), 91.151(b), 91.209(a)(1), 91.403(b), 
91.405(a), 91.407(a)(1), 91.409(a)(1), 91.409(a)(2), 91.417(a), 
91.417(b), among other sections of part 91.
---------------------------------------------------------------------------

    It is important to note that, while proposed part 108 enables the 
operation of UA BVLOS, there is no prohibition from operating within 
VLOS under proposed part 108, so long as all the regulatory 
requirements are met. To illustrate this, an aircraft weighing less 
than 55 pounds that is to be operated within VLOS would have several 
options for which part they could operate under. They could operate 
under part 107, proposed part 108, part 91, or 49 U.S.C. 44809. Each 
regulation has its own set of unique requirements and allowances. An 
operator would have to meet all relevant requirements associated with 
the regulatory part they choose to operate under.
    Proposed part 108 is not intended to be used for carriage of 
people. The risk mitigations provided by this part are not sufficient 
for passenger carriage nor were they designed with carriage of people 
in mind. To that end, FAA proposes in Sec.  108.1(b)(4) that UA 
operated under part 108 are not permitted to carry a person. Operations 
contemplating carriage of people would appropriately occur under other 
regulatory parts, such as 14 CFR parts 91 or 135.

[[Page 38226]]

B. Reporting and Prohibitions

1. Reproduction or Alteration (Sec.  108.10)
    FAA expects that all parties affected by this proposed rulemaking 
would comply with FAA requirements when conducting UAS BVLOS operations 
under proposed part 108. Engaging in fraudulent or deceptive practices 
would be prohibited under proposed part 108, as it is under all 
existing FAA regulations.\45\
---------------------------------------------------------------------------

    \45\ As proposed in the Falsification, Reproduction, Alteration, 
Omission, or Incorrect Statements notice of proposed rulemaking (89 
FR 8560), FAA intends to use a comprehensive prohibition on 
fraudulent or deceptive practices that covers all FAA regulations. 
If that rule becomes final, proposed Sec.  108.10 would be 
redundant.
---------------------------------------------------------------------------

    Proposed Sec.  108.10(a) would prohibit anyone from making any 
fraudulent or intentionally false statement to any information 
submitted to FAA to show compliance with proposed part 108. Persons 
would be prohibited from fraudulently reproducing or altering an FAA-
issued operating certificate or permit. If anyone were to engage in 
fraudulent or deceptive practices, proposed Sec.  108.10(b) would 
enable FAA to issue penalties to those persons for their violations. 
Those penalties could include issuing a denial to applications for part 
108 operating permits, part 108 operating certificates, certificates of 
waiver or authorizations, or declarations of compliance. Under the 
proposed rule, FAA may also penalize violators by suspending or 
revoking any permit, certificate, authorization, DOC, or similar that 
were already issued or accepted by FAA. Lastly, anyone violating this 
provision may also be subject to civil penalties.
2. Prohibition on Interference With Unmanned Aircraft Operations 
Personnel (Sec.  108.15)
    Proposed Sec.  108.15 would prohibit anyone from assaulting, 
threatening, intimidating, or interfering with operations personnel of 
a UA in the performance of their duties regarding the operation of a 
UA. This requirement would be necessary to protect the safety and 
efficiency of the NAS. Bad actors who interfere with UAS operations may 
endanger public safety, or any persons or property--both in the air or 
on the ground--which is anathema to FAA's obligation to ensure the safe 
and efficient use of the NAS. FAA notes that nothing in this 
requirement would preclude law enforcement, emergency services, the 
intelligence community, military personnel, or FAA personnel executing 
their authorized duties from intervening in operations in the interests 
of national security, emergency response, or oversight and surveillance 
necessary for the safety of the NAS.
3. Inspection, Testing, and Demonstration of Compliance (Sec.  108.20)
    To ensure operations are conducted in accordance with existing 
rules and limitations, and FAA's statutory oversight 
responsibilities,\46\ Sec. Sec.  108.20(a)(1) and (2) proposes that an 
operator would need to have their authorization to operate and 
identification readily accessible when operating and present it to any 
of the following: FAA, the National Transportation Safety Board (NTSB), 
and law enforcement officers. This measure would ensure that all 
operators are appropriately authorized, enhancing the safety and 
security of airspace operations. This requirement would set the stage 
for obligations aimed at maintaining operational integrity and 
oversight. This mandate would hold the operator accountable for 
unauthorized access and operation of UAS, which could result in 
incidents or accidents. The proposed requirement that operators have 
their authorization and identification on hand is so that government 
personnel would be able to verify that the operation is authorized and 
that qualified personnel are in control. This would ensure that 
operations are conducted efficiently and in compliance with regulatory 
standards.
---------------------------------------------------------------------------

    \46\ See 49 U.S.C. 44701(a)(2)(A).
---------------------------------------------------------------------------

    Section 108.20(a)(3) further proposes that an operator would need 
to make available, upon request of FAA or any authorized representative 
of the NTSB, any document, record, or report required to be kept under 
the regulations of 14 CFR chapter I. By ensuring that all relevant 
documents, records, and reports are readily available for inspection, 
government representatives would be able to monitor compliance with 
established safety standards and regulations. This oversight would be 
essential for identifying potential areas of non-compliance or safety 
risks that could jeopardize the safety of operations. Utilizing these 
documents as part of regular and ad-hoc inspections would allow for a 
proactive approach to safety management, enabling the early detection 
and resolution of safety issues before they lead to accidents or 
incidents.
    In the aftermath of an incident, the availability of comprehensive 
documentation is important for thorough investigations conducted by the 
NTSB or other relevant authorities. These documents would provide a 
detailed account of operational procedures, maintenance records, 
personnel qualifications, and other factors that might contribute to 
understanding the root causes of an incident. Access to such 
information supports developing effective recommendations to prevent 
future occurrences, thereby improving overall safety standards.
    Section 108.20(b) proposes that each operator of UAS would be 
required to, upon request, allow FAA to make or witness any test or 
inspection of the UAS, including any aspect of the operation of a UAS, 
and if applicable, the automated data services utilized, to determine 
compliance with this part, including access to the operations area for 
the aircraft. This proposed requirement is consistent with FAA's 
exercise of its authority to ensure operational safety in the NAS. In 
circumstances in which FAA were to identify a safety issue that 
warrants review of the operation, this proposed requirement would 
permit FAA review of all applicable information to make any appropriate 
determinations about the safety of the operation.
    The ability for FAA to perform inspections without prior notice 
would ensure that operators consistently adhere to the highest 
standards of safety as a fundamental practice, not just when an 
inspection is anticipated. This continuous state of readiness and 
compliance would safeguard not only the operators and their assets, but 
also the public potential hazards.
    Moreover, these inspections would serve as a feedback loop. They 
would allow FAA to observe operational practices, the state of 
equipment, and adherence to regulations. Such inspections would promote 
transparency and accountability. By allowing FAA access to conduct 
these evaluations, operators would demonstrate their commitment to 
operating within existing limitations and requirements. This openness 
would build trust among stakeholders, including regulatory bodies, the 
public, and other airspace users.
    Section 108.20(c) proposes that each employee of, or person used 
by, the operator who is responsible for maintaining the operator's 
records would need to make those records available to FAA. Making 
records accessible to FAA would allow for thorough audits and reviews 
that can verify compliance with safety standards, operational 
procedures, and maintenance practices. These records would include, but 
would not be limited to, logs of operational procedures, maintenance 
and repair

[[Page 38227]]

records, safety assessments, and employee training records and any 
other record relating to compliance.
    Requiring records to be available for inspection would encourage 
operators to maintain accurate and comprehensive documentation of their 
operations. This practice would support continuous improvement by 
facilitating regular reviews and updates to safety practices based on 
insights gained from record analysis.
    As part of FAA's safety oversight framework, this proposal would 
require individuals holding an FAA airworthiness acceptance to make 
available evidence of such acceptance and any other requisite documents 
upon request. It would ensure that aircraft operating within FAA's 
regulatory jurisdiction meet the safety standards, thereby protecting 
the public, enhancing the integrity of the aviation industry, and 
fostering continuous improvement in aviation safety.
    Section 108.20(d) proposes that failure by any operator to make 
available to the Administrator upon request, the certificate, 
operations specifications, or any required record, document, or report 
would be grounds for suspension of all or any part of the operator's 
permit or certificate.
4. Aviation Safety Reporting System: Prohibition Against Use of Reports 
for Enforcement Purposes (Sec.  108.25)
    Proposed Sec.  108.25 would prohibit FAA from using reports 
submitted to the National Aeronautics and Space Administration (NASA) 
under the Aviation Safety Reporting System (ASRS) in any enforcement 
action against part 108 operators. This prohibition would not apply, 
however, in cases where the information submitted to NASA concerns 
accidents or criminal offenses, which are wholly excluded from ASRS. 
ASRS was originally created to collect aviation safety event 
information from pilots, mechanics, air traffic controllers, and other 
users of the NAS. Under part 107, UAS pilots operating within the VLOS 
may also use ASRS to report safety events.
    The prohibition in proposed Sec.  108.25 against FAA using ASRS 
data in enforcement actions would be very similar to how such reports 
are protected and used for part 91 pilots, part 107 UAS pilots, and 
other airspace users who are subject to various portions of FAA 
regulations. FAA and NASA have recognized the benefit of having 
accurate, candid, and timely reports of unsafe (or potentially unsafe) 
conditions in the NAS. Such data and reports are vital for proactive 
and generative safety assurance, enabling FAA to identify leading 
indicators of increasing risk prior to an accident or incident. As FAA 
stated in Advisory Circular (AC) 00-46F, ``the effectiveness of this 
program in improving safety depends on the free, unrestricted flow of 
information from the users of the NAS.'' FAA is concerned that, without 
such a prohibition on enforcement actions, pilots, UAS operators and 
other NAS users would be disincentivized from making safety reports, 
including acknowledging unintentional or honest mistakes, for fear of 
being penalized by FAA.
5. Base of Operation and Operator Identification (Sec. Sec.  108.30 and 
108.35)
    FAA proposes in Sec. Sec.  108.30(a) and (b) that each operator 
would be required to maintain a principal base of operations in the 
United States and would be required to provide FAA with a physical 
address. This physical address would serve as the primary point of 
contact for FAA, though (per proposed Sec.  108.30(d)) the operator may 
perform operations at locations other than the principal base of 
operations, as authorized by FAA. Further, per proposed Sec.  
108.30(c), the operator would need to notify FAA at least 30 days prior 
to changing their principal base of operations. However, recreational 
operators would not be required to submit a principal base of 
operations, in accordance with proposed Sec.  108.475(f)(3). 
Recreational operators would only be required to submit a physical 
address.
    By ensuring that all operators supply a physical address, FAA would 
have the ability to accomplish prompt and cost-effective service of 
process and service of other safety-critical or time-sensitive 
documents, including notices of proposed civil penalties, orders of 
suspension or revocation, and emergency orders of suspension or 
revocation. In addition, as this proposed rule would only apply to 
operations conducted within the United States, FAA finds it necessary 
that the physical base of operations is also located in the United 
States. While part 47 aircraft registration does require the aircraft 
owner to provide a mailing address, FAA is including this requirement 
for a principal base of operations in proposed part 108 because it is 
important for FAA to know the primary location where the operator will 
be conducting operations to conduct inspections. The address required 
for part 47 is the owner's mailing address, which may or may not be 
where the UA is located or from which it is operated.
    In addition, FAA proposes in Sec.  108.35(a) that an operator would 
not be able to operate or advertise services of a UA under part 108 
using a business name other than what is listed on the operating permit 
or operating certificate. If the operator were to operate under a d/b/
a, the business names would need to be provided on the application and 
listed on the permit or certificate to be valid. Furthermore, in 
proposed Sec.  108.35(b), no person would be able to operate a UA under 
part 108 unless the identity of the operator is displayed on the UA in 
a manner acceptable to FAA. In addition to the registration number, FAA 
proposes that an operator would need to include the company name or 
trademark on the exterior of the aircraft for ease of identity in the 
case of a lost aircraft or off-site landing. FAA also encourages the 
addition of contact information in the form of a phone number, QR code, 
or other method to enable people who may come across the UA be able to 
report the sighting easily.
    These proposed requirements in Sec.  108.35 would be consistent 
with FAA practices for other commercial operations and would ensure FAA 
has sufficient information to contact the operator as necessary, 
including in instances where a UA is destroyed and access to remote ID 
or other electronic systems is not possible, or FAA has other reason to 
contact the operator. In addition, as with other regulations applicable 
to commercial operations, the proposed prohibition on advertising under 
a different name would ensure that the people using the operator have 
the assurance that the company is operating within the regulatory 
framework established by FAA and would ensure FAA can appropriately 
link the operator who is advertising with the approval for the 
operation.

C. Recordkeeping (Sec.  108.40)

    FAA proposes in Sec.  108.40 to require each operator under 
proposed part 108 to maintain records for each aircraft used in part 
108 operations, each required operations personnel used in part 108 
operations, any mechanical irregularities for the UA and its AE, any 
maintenance or alterations performed on the UA or its AE, and all 
initial and recurrent training taken by each person required to receive 
training under proposed part 108. The operator would also be expected 
to provide FAA access to the records upon request, either 
electronically or in paper form.
    For aircraft records, FAA proposes under Sec.  108.40(a) that 
operators would need to include a current list of UA used in the 
permitted or certificated operation, the total time in service of each 
UA, and the status of any life-limited parts. FAA and industry rely

[[Page 38228]]

heavily on current aircraft status and past aircraft servicing and 
inspections to determine airworthiness of an aircraft. FAA would 
therefore require these records to be kept by the operator under this 
part.
    FAA further proposes in Sec.  108.40(a)(3) that an operator who 
performs a flight under this proposed rule would need to maintain 
records of each flight, including the date, time, and duration of the 
flight; the aircraft registration number; the type of operation (e.g., 
package delivery); the flight path including destination, origin, and 
altitude(s); the name of the designated operations personnel assigned 
to each flight; and landing locations if different from origin and 
destination locations. FAA is proposing this recordkeeping to ensure 
the availability of information critical to incident or accident 
investigations. By requiring the operator to maintain these, FAA and 
operator would have historical data to determine root causes of 
occurrences, incidents, or accidents.
    Proposed Sec. Sec.  108.40(a)(3)(vii) and 108.40(a)(3)(viii) 
include operation type-specific recordkeeping requirements for package 
delivery and agricultural operators. Under proposed Sec.  
108.40(a)(3)(vii), FAA would require package delivery operators to keep 
a record of the pickup points and delivery locations for each 
operation. FAA is proposing this requirement in addition to 
destination, origin, and landing locations because some UA do not 
physically land to pick up or deliver packages and it would be critical 
for FAA to know who the customers or warehousers are and where they are 
located in the event of an incident or accident investigation. Under 
proposed Sec.  108.40(a)(3)(viii), FAA would also require the operators 
performing agricultural operations to keep a record of the name and 
address of each person for whom agricultural UA services were provided, 
the date of the service, and the name and quantity of the substance 
dispensed be kept as a record by the operator. The rationale for this 
additional requirement is that the agricultural operator may be 
contracted to provide services to one or more customers, and it is 
important for FAA to know who these customers are and where they are 
located in the event of an incident or investigation. Oftentimes, FAA 
does not discover non-compliance, accidents, or incidents involving 
aircraft until after the flight has been completed. By requiring these 
detailed records to be kept by the operator, FAA and operator would 
have historical data to look back on to determine root causes to 
occurrences, incidents, or accidents.
    Because personnel are a key contributor to how any permit or 
certificate holder conducts safe operations, FAA proposes in Sec.  
108.40(b) that each operator would need to maintain records on each 
person required for the safe operation of the UAS used in its 
operations, including their full name, qualifications in sufficient 
detail to determine the individual's ability to participate in part 108 
operations, current duties and date of duty assignment, and information 
relating to an individual's release from employment for cause. In 
addition, for operators holding an operating certificate, the operator 
would also need be required to maintain records on the date and times 
of operations personnel assigned work shifts, the length of the rest 
period prior to each duty period for each of the required personnel, 
and the total hours on duty per calendar day for each of the required 
operations personnel which, as discussed in VII.F, would require a 
minimum of 10-hour rest periods and maximum 14-hour duty days. This 
information would be valuable in understanding if persons are fit for 
duty and appropriately qualified. In addition, this information would 
be beneficial to FAA for continued surveillance purposes.
    FAA proposes in Sec.  108.40(c) that operators would need to 
provide logs for personnel to record mechanical irregularities. Having 
this log would allow personnel to view current and previous 
discrepancies for corrections and airworthiness of the aircraft. FAA 
further proposes that operations personnel would be required to enter, 
or to have entered, in the log each mechanical irregularity for the UA 
and their AE that comes to the person's attention. For operators to 
ensure that faulty or inoperative equipment is addressed per 
manufacturers' maintenance instructions, operations personnel would 
need to create a log of the faulty item should it come to their 
attention. This log would ultimately be used by both maintenance 
personnel for correction and operations personnel for determining 
overall UA airworthiness. In addition, when entering a log of 
mechanical irregularity, FAA proposes that personnel who take 
corrective action concerning a reported or observed failure or 
malfunction would need to enter, or need to have entered, the action 
taken in the log. This would ensure that any person(s) responsible for 
determining UA airworthiness can decide the UA's overall operational 
status.
    Further, FAA proposes that, under Sec.  108.40(d), the operator 
would be required to maintain records of the UA inspection status for 
each maintenance or alteration activity to the UA or its AE. It is 
important for anyone operating the UA to be able to determine when the 
last inspections were performed and the status of all the required 
inspections as outlined in the manufacturer's maintenance instructions. 
In addition, persons performing maintenance on the UA would be required 
under proposed Sec.  108.40(d)(1) to make a record of that activity, 
including a description of the work performed, the date of completion 
of the work, the identification of the person who performed the 
maintenance, and a return to service approval. These requirements would 
additionally help persons responsible for airworthiness determination 
to ensure proper airworthiness status of the UA by showing a complete 
log of all work performed.
    FAA proposes in Sec.  108.40(d)(2) that operators would not need to 
comply with the logging and documenting requirements of proposed Sec.  
108.40 for removal and replacement of UA batteries designed for 
frequent, toolless replacement if the operator has other means of 
tracking battery use, life, and performance. Some UA designs 
necessitate the removal of the aircraft batteries on every flight for 
charging. Aircraft designed this way are expected to have an easy, 
toolless feature that prevents the battery from being installed 
improperly and ensures that the battery is secure. Therefore, all of 
the information generally required for other maintenance entries may 
not be needed in these cases and may become overly burdensome if 
required for every flight. However, FAA recognizes that batteries are 
essential to most UA operations and does propose that operators would 
still need a way to track battery use, life, and performance.
    FAA also proposes in Sec.  108.40(d)(3) that operators would not 
need to comply with the logging and documenting requirements of Sec.  
108.40 for removal and replacement of UA components that are designed 
for toolless removal and installation, such as removable rotors which 
may be necessary to remove for UA storage, so long as the operator has 
procedures for ensuring that any part that is removed is inspected for 
serviceability prior to being reinstalled and: (1) the parts are 
reinstalled on the same aircraft; (2) the parts are not subject to time 
limits; or (3) the operator has other means of tracking installations 
and use. Through current experience, FAA understands that UA often have 
various removable parts that are frequently removed and replaced 
without being deemed faulty. These typical parts are removed for

[[Page 38229]]

reasons such as storage or repositioning of the UA. FAA does not intend 
to overburden an operator with logging and documenting parts that the 
manufacturer has designed to be normally removed and reinstalled. So 
long as operators have procedures for ensuring parts are removed, 
inspected, and reinstalled, FAA has concluded that safety would not be 
affected by not requiring logging and documenting normal removal and 
reinstallation of parts.
    Personnel training is of great importance, as it ensures 
appropriate qualification, competency, and proficiency of a person 
performing their duties. To understand each person's qualification, 
competency, and proficiency, proposed Sec.  108.40(e) would require the 
operator to keep a record showing personnel training. Initial and 
recurrent training records are important because they show a person's 
baseline qualifications and continuing proficiency. In addition to 
requiring recordkeeping of all initial and recurrent training, 
operators would additionally need to maintain records on initial and 
recurrent training on handling hazardous materials and for agricultural 
operations. As described in section VIII.C 9, these types of operations 
would have additional knowledge requirements to address the use of 
agricultural products. In addition, these training records would give a 
snapshot of company policies and procedures at the time that the 
training occurred. This may be of importance when reviewing archival 
records for root cause of non-compliance or a safety incident.
    FAA proposes that the records required by Sec.  108.40(e) would 
need to contain the person's name, the date of hire or start of a 
related job function, the most recent training completion date, a 
description, copy, or reference to training materials used to meet the 
training requirement, the name and address of the organization 
providing the training, and a copy of the certification issued when the 
individual was trained, which would show that training has been 
completed satisfactorily. All of this documentation would help not only 
the operator to have a complete description of the training event for 
tracking, scheduling of future training, and archival documentation for 
non-compliances, but also would help FAA to determine continued 
compliance.
    Finally, this proposal would include minimum retention periods. FAA 
recognizes that operators may struggle to keep track of old records and 
the necessity for archival data from those records becomes unnecessary 
and non-applicable as time goes on. FAA therefore proposes that UA 
records, mechanical irregularity records, and maintenance records would 
need to be kept either for the life of the aircraft, or for 24 months, 
as applicable. Records of the total time in service of each UA and the 
status of any life-limited parts must be kept for the life of the 
aircraft as they establish important history for the UA that must be 
maintained. Records of each flight performed, must be retained for a 
period of 24 months. Personnel records must generally continue to be 
maintained as long as the employee is employed and continue until 12 
months after the person has separated from the company, to include any 
training performed or received, however, duty and rest records only 
have to be maintained for 3 months. Records of mechanical 
irregularities and maintenance performed must also be retained for a 
period of 24 months.
    In addition, personnel and training records would need to be 
retained for 12 months following the separation of the personnel from 
the operator. This amount of time would be sufficient for these records 
to be useful. FAA does not want to impose on an operator record filing 
that, after years of retention, may create faulty, inundated databases 
with records that have not shown to be of concern within the previous 
12 months. FAA proposes that initial and recurrent training records 
required by Sec.  108.315, initial and recurrent training records 
required by Sec.  108.440(b), initial and recurrent training records 
required by Sec.  108.570(a) and records received for agricultural 
operations required by Sec. Sec.  108.445(i)-(j) and 108.575(g) would 
need to be retained under the proposed above requirements for 12 months 
after separation.
    Finally, FAA proposes that operators holding an operating 
certificate would need to retain records in proposed Sec.  108.40(b)(5) 
concerning the date and times of operations personnel assigned work 
shifts, the length of the rest period prior to each duty period for 
each of the required operations personnel, and the total hours on duty 
per calendar day for each of the required operations personnel for a 
period of 3 months. Information contained in these records are related 
to individual flights. FAA would use this type of data during routine 
surveillance inspections to determine individual flight compliance with 
regulations. FAA does however recognize the burden that would be 
imposed on an operator should records for multiple flights be required 
to be kept for long periods at a time. Operator databases would be 
overloaded with data. During routine surveillance, FAA typically 
reviews samplings of this type of data to determine overall compliance. 
FAA does not see the need to retain lengthy archival data concerning 
individual flights.

D. Reporting (Sec.  108.45)

    FAA has a duty to ensure the safety of the NAS. To do so, FAA needs 
to be aware of accidents, incidents, and precursor safety events and 
occurrences in the NAS. The reporting requirements proposed in Sec.  
108.45 are intended to capture a diverse set of data ensuring that FAA 
can appropriately track and monitor the safety of UAS operations under 
this part.
    In Sec.  108.45(a)(1), FAA proposes that each operator would be 
required to report aggregate flight data to FAA. This data would 
include the total number of flight hours operated for each individual 
UA, including the specific make, model, or series of aircraft and the 
associated FAA registration number. This data would be helpful for 
three reasons. First, it would support FAA's safety oversight 
functions. By collecting flight data, FAA would gain insights into UAS 
operations. This information would help FAA identify potential risks, 
and areas for improvement. Second, this data would be useful in 
identifying trends that could otherwise lead to accidents or incidents. 
Monitoring flight hours would allow FAA to track usage patterns and 
identify any anomalies or excessive usage. This would also aid in 
preventing accidents due to overuse or fatigue-related issues. Third, 
reporting flight data would ensure compliance with regulations by 
enabling FAA to verify that operators are adhering to their operational 
limits.
    In Sec.  108.45(a)(2) FAA proposes requiring operators to provide 
flight data to the manufacturer or permit and facilitate flight data 
collection by the manufacturer to ensure continued operational support 
for the operator. Traditionally, these data collection systems are 
already voluntarily implemented within the industry to analyze flight 
data to aid in the identification of safety issues with the UA design. 
FAA envisions that this could be accomplished by submitting the data 
log file to support both Sec.  108.725 and Sec.  108.905. In Sec.  
108.45(b), FAA proposes requiring each operator to report the 
registration and serial numbers of each aircraft used in part 108 
operations. This report would need to be made in a form or manner 
acceptable to the Administrator. FAA notes in proposed Sec.  108.45(b) 
that this reporting can be combined with the flight data reporting 
required under

[[Page 38230]]

proposed Sec.  108.45(a). Requiring this reporting allows FAA to easily 
determine an operator's compliance with Sec.  108.115 as well as to 
ensure ongoing regulatory compliance.
    In Sec.  108.45(c), FAA proposes that operators would be required 
to submit a monthly interruption report summary to FAA when there is an 
occurrence related to an unplanned or precautionary landing away from 
the normally designated landing location or where the planned UAS route 
is altered due to known or suspected mechanical difficulties or 
malfunctions. By analyzing these occurrences, FAA would gain insights 
into common failure modes. This information would inform maintenance 
practices and would help improve reliability--including potential 
changes that the manufacturer may need to make or that can be addressed 
through revisions to industry consensus standards. Aggregated reports 
would allow FAA to assess the overall health of a growing and diverse 
fleet of UAS. This would inform regulatory decisions, training 
programs, and safety best practices, among other outcomes. Taken 
together, these reporting requirements would serve as essential tools 
for maintaining safety, compliance, and operational efficiency.
    FAA further proposes that operators certificated under subpart E 
would be mandated under Sec.  108.45(d)(1) to report to the UA 
manufacturer any failure, malfunction, or defect that results in a 
momentary or permanent loss of control or communication of the UAS if 
it has endangered, or may endanger, the safe operation of the UA. Under 
the proposed rule, operators would also have to provide such reports to 
FAA upon request. FAA's intent for this proposed requirement is that 
this information could be used by the manufacturer to monitor and 
identify negative trends affecting the safe operation of the UA and its 
AE. Reporting reliability issues to the UAS manufacturer would provide 
a vital source of data to help detect and mitigate potential hazards 
and improve aircraft design. Safety reporting can provide precursor 
data before a hazard leads to a more significant event. By analyzing 
these events, industry may be able to avoid future incidents or 
accidents.
    Operators would need to include specific details in their reports, 
including the date, aircraft identification and nature of the failure. 
Furthermore, FAA proposes in Sec.  108.45(d)(1) that service difficulty 
reports would also need to include identification of a part or system 
involved, which aids in pinpointing root causes and assessing overall 
system reliability. FAA also proposes in Sec.  108.45(d)(1) requiring 
operators to indicate the apparent cause of the failure, malfunction, 
or defect. This could include factors such as wear, cracks, a design 
deficiency, or a personnel error on the part of the operator. 
Regardless of what the cause is, understanding the root cause would 
inform better preventive measures. To assist manufacturers in 
determining the best course to address a service difficulty report, FAA 
also proposes in Sec.  108.45(d)(1) that operators would need to report 
any corrective actions taken.
    The service difficulty reporting requirements for operators to 
report to automated data service providers in proposed Sec.  
108.45(d)(2) would substantially mirror those discussed in proposed 
Sec.  108.45(d)(1), albeit with several notable exceptions. The 
requirement to make service difficulty reports related to service usage 
would apply to all users of a service, not just operational certificate 
holders. Because the operational use of automated data services is new, 
FAA wants to enable greater information exchange between users and 
service providers when the failure, malfunction, or defect of an 
authorized service has endangered or may endanger the safe operation of 
the aircraft. This proposed rule would require that users report 
details of the apparent failure of an automated data service, which 
could include operational or functional issues including notification 
of a contingent state, interface issues, data issues, time delay/
latency issues, or the operational response to information or alerts 
from a service. FAA intends for this to be broad so that users and 
service providers alike can recognize a range of issues, including 
systemic incorrect usage of a service that may be due to ambiguities in 
documentation, design, or other factors.
    Prompt reporting of service difficulties of not later than 7 days 
after the occurrence would enable manufacturers and automated data 
service providers to play a proactive role in assessing and mitigating 
potential safety risks. By reporting to the aircraft manufacturer or 
the automated data service providers, operators would contribute to a 
broader understanding of real-world performance and reliability. This 
feedback would inform design improvements, corrective actions, and 
other sets of standards upon which the airworthiness acceptance and 
service authorization rely. Therefore, in proposed Sec.  108.45(h)(4), 
FAA proposes that reporting under (d)(1) and (d)(2) would need to occur 
no later than 7 days after the occurrence.
    FAA proposes several security-related reporting requirements in 
Sec.  108.45(e). Any security breach where an operator loses control of 
the UAS would need to be reported to FAA. This would include 
unauthorized control that may be careless in nature or perpetrated by a 
malicious agent, regardless of if that individual is an employee or an 
outsider. Furthermore, an operator would need to report unauthorized 
access to the operator's facilities, including areas where UAS are 
loaded, hazardous materials are stored, or goods are prepared for 
transport. Finally, an operator would need to report unauthorized 
access to the operator's networks, devices, or data, regardless of its 
impact on UAS operations' integrity, accuracy, or reliability. In the 
report for any incident, the operator would need to include the date 
and time of the incident, the nature and scope of the incident, 
identification of any vulnerabilities that led to loss of control or 
unauthorized access, and corrective actions taken. These security-
related reporting requirements would work in conjunction with similar 
requirements FAA proposes for aircraft manufacturers (sections X and 
XI) and automated data service providers (section XIII). Reporting 
security incidents would ensure that potential threats are identified 
and addressed promptly and contributes to national security by 
preventing misuse of UAS technology. Reporting would allow FAA to 
investigate breaches, assess vulnerabilities, and implement corrective 
measures. It also would help prevent future incidents. Reporting such 
breaches helps safeguard critical data and maintain public trust.
    FAA proposes in Sec.  108.45(f) that part 108 UAS operators report 
any deviation from this part in the event of an emergency within 10 
days, excluding Saturdays, Sundays, and federal holidays. While 
emergencies may necessitate deviations from standard procedures, 
reporting these deviations would ensure transparency and accountability 
on the part of the operator, and may provide insights into operational 
challenges that could inform changes in training or operational 
policies.
    FAA proposes in Sec.  108.45(g) that operators must report to FAA 
any operation of a UA that involves damage to property, other than the 
UA, which exceeds $500, and for any malfunction or failure of any 
system that leads to operations into an unauthorized area. Note that 
these reports are in addition to the reporting of aircraft accidents 
and

[[Page 38231]]

serious incidents required under 49 CFR 830. FAA chose not to add a 
duplicative reporting requirement as FAA would also receive these 
notifications in due course through that regulatory process. FAA 
intends to use the data both to track overall safety performance and to 
establish and update relevant safety policies for ongoing BVLOS UAS 
operations under the rule. Reports under proposed Sec.  108.45(g) would 
need to include the date, time, and location of the event, as well as a 
description of the event (including operational factors including 
whether use, failure, malfunction, or defect of an automated data 
service provider was a factor) and any known contributing factors. FAA 
proposes requiring reports within 10 days of the event. This would be 
consistent with the corresponding reporting requirement in proposed 
Sec.  107.20.
    Finally, FAA proposes in Sec.  108.45(h) reporting timeframes for 
each reporting requirement enumerated under proposed Sec.  108.45. 
Under the proposed rule, flight data and UA registration and serial 
numbers (Sec. Sec.  108.45(a) and 108.45(b)) would need to be provided 
to FAA at least once each calendar month. FAA intends to provide an 
automated interface to facilitate the collection of this data and 
anticipates that most manufacturers and operators will incorporate 
automation to comply with this request, so that data collection could 
be as frequent as near real-time, weekly, or any other frequency that 
is at least once a month. As this is a new requirement, FAA invites 
comments on the impact this might have on operators, including 
potentially less-burdensome alternatives.
    Summaries of occurrences under interruption reports (Sec.  
108.45(c)) would need to be provided no later than the end of the 10th 
day of the following month in which the occurrence took place, which 
would be consistent with other similar requirements in other 
regulations.\47\ Service difficulty reports (Sec.  108.45(d)) would 
need to be submitted 7 days after the occurrence, with additional 
information provided as needed to supplement the initial report which 
is also consistent with similar requirements.\48\ Security occurrences 
(Sec.  108.45(e)) would need to be reported no later than 96 hours 
after the occurrence, with supplemental information after the initial 
report as needed, which would be a new requirement but is being 
proposed as a 96-hour requirement due to the nature of the information. 
Emergency conditions and event reporting (Sec. Sec.  108.45(f) and (g)) 
would need to be submitted within 10 days of the deviation or event, 
respectively.
---------------------------------------------------------------------------

    \47\ See, e.g., 14 CFR 135.417, 14 CFR 121.705, 14 CFR 91.1417.
    \48\ See, e.g., 14 CFR 135.415, 14 CFR 121.703, 14 CFR 125.409.
---------------------------------------------------------------------------

    Lastly, in considering appropriate reporting requirements for 
operations under part 108, FAA is considering requiring UA operators to 
report to FAA all aircraft traffic targets received by their UA 
operating under this part. This would include reporting ADS-B targets 
used to meet Sec.  108.195 and part 89 compliant remote ID received by 
the operator's UA. The latter remote ID reporting requirement would 
have required additional aircraft reception capability that is not 
explicitly required by the proposed part 108 rule. This reporting 
requirement would allow FAA to have a more comprehensive awareness of 
operations within airspace used by part 108 operators. It would allow 
FAA to better respond to governmental or public inquiries about UAS 
operations as low altitude UAS operations increase in scale. However, 
the presumed additional cost to meet the reporting requirement for the 
UA manufacturer, part 108 operator, and FAA is considerable. FAA 
requests comment on whether FAA should require this traffic target 
reporting, and if so, what type of general time latency would be 
appropriate for FAA to require.

VI. Conducting UAS BVLOS Operations (Subpart B)

    Subpart B of proposed part 108 prescribes the general operating 
requirements for all operators conducting operations under proposed 
part 108. To conduct UAS BVLOS operations in the NAS under this 
proposed rule, FAA would require part 108 operators to comply with all 
applicable requirements of this part. As noted in proposed Sec.  
108.100(a), this rule would establish two pathways for operation under 
part 108, operating permits and operating certificates. Subpart B 
applies to operations conducted under an operating permit (subpart D) 
and operations conducted under an operating certificate (subpart E). 
Further description of the operating permits and certificates can be 
found in section VIII of this preamble and personnel requirements can 
be found in section VII of this preamble.
    This rule proposes requirements for BVLOS operations conducted 
within the United States, using risk-based criteria that permit further 
evolution of operations than currently allowed in existing regulations. 
The below section lays out FAA's reasoning and proposed requirements 
for a BVLOS operating framework, while this section describes the 
overall requirements applicable to all BVLOS operations envisioned 
under this rule.
    Proposed part 108, like part 107, would have specific risk 
mitigation and hazard reduction provisions that would facilitate 
integration. The requirement for all part 108 operations to have a 
means to avoid manned aircraft broadcasting their position using ADS-B 
Out equipment would extend to Class G airspace, providing additional 
collision risk reduction compared with the strategic mitigations 
provided through the regulatory requirements of part 107. In addition, 
UAS would be required to have anti-collision lighting that conforms to 
an industry standard to ensure that they are visible to manned 
aircraft.
    To meet the requirements of proposed part 108, operations under 
this proposed part would require the use of a registered aircraft 
(section VI.A.2) with an airworthiness acceptance received in 
accordance with subparts G and H of part 108, with an exception for 
flight testing. The UA and its AE would be required to be equipped with 
aircraft lighting (section VI.A) and be in safe condition for operation 
(section VI.B). This rule proposes to permit operations in both 
uncontrolled (section VI.F) and controlled airspace (section VI.G), 
with operations limited to 400 feet AGL and below. Access to controlled 
airspace would depend on the operator holding an approved method for 
strategic deconfliction and conformance monitoring, as discussed in 
section VI.I.
    This rule also proposes a set of criteria by which operators could 
operate over people (section VI.H). These criteria would rely on a 
population distribution data set called LandScan USA, developed by the 
Oak Ridge National Laboratory, and define categories and criteria for 
operation. This rule would continue to prohibit operations over open-
air assemblies.
    In order to enable operations in controlled airspace and over 
people, this rule also proposes requirements for strategic 
deconfliction (section VI.I), changes to right-of-way rules (section 
VI.J), and Remote ID performance (section VI.K). These three proposed 
requirements would provide a framework for the kind of shared, dynamic 
environment FAA anticipates this proposed rulemaking could enable. In 
addition, this rule sets requirements for shielded operations (section 
VI.L), which would permit BVLOS operations within 50 feet of an 
obstacle or a structure or other designated areas, without further 
authorization. The

[[Page 38232]]

proposed rule would permit operations with multiple UA (section VI.M).
    Finally, this rule proposes requirements to prohibit careless or 
reckless operation (section VI.N), manuals (section VI.O), and 
emergency conditions (section VI.P).

A. Operating Unmanned Aircraft Under Part 108

    As explained in section X of this preamble, FAA is proposing that a 
UA operating under this rule would be required to have an airworthiness 
acceptance rather than an airworthiness certification. Because an 
individual UA evaluation by FAA would not take place, FAA would 
additionally require under proposed Sec.  108.720(a)(1) that the 
manufacturer develop limitations for the UAS to be operated as 
specified in the manufacturer's UAS operating instructions. This 
requirement would ensure that operators do not exceed the 
manufacturer's operational limits on the UA, which could lead to UA 
failure. Under this proposed rulemaking, manufacturers would develop 
and test UA to meet consensus standards for FAA airworthiness 
acceptance. Manufacturers would need to demonstrate that the UAS design 
may be safely used in BVLOS operations in accordance with FAA-accepted 
consensus standards.
    Accordingly, to operate under proposed part 108, operators would be 
required to use a UA that holds an airworthiness acceptance, as noted 
in proposed Sec.  108.105(b), except for UA operated under the flight 
test permit of proposed Sec.  108.470. These UA and AE would need to be 
in condition for safe operation and, per proposed Sec.  108.105(a), 
meet the equipage requirements of subpart H, further described in 
section XI. These equipage requirements to meet proposed Sec.  
108.105(c) would provide the assurance that the aircraft would be able 
to operate safely, including the fidelity of the AE, suitability and 
durability of materials, and lighting requirements.
1. Aircraft Lighting (Sec.  108.110)
    Using an anti-collision lighting system or position lights on UA 
would provide a means for a manned aircraft pilot to observe UA. As 
such, FAA has proposed in Sec.  108.110 that aircraft lighting would be 
required for operations under part 108. Proposed Sec.  108.110(a) would 
require operators to use an anti-collision lighting system during all 
flight operations, day or night, except when in the interest of safety, 
as discussed below. To comply with proposed Sec.  08.110(a), the anti-
collision lighting system would need to meet the requirements of 
proposed Sec.  108.830. In addition, proposed Sec.  108.110(b) would 
require operators use lighted position lights during all operations at 
night when operating a UA that is equipped with position lights per the 
requirements of proposed Sec.  108.835.
    An anti-collision light is designed to minimize the risk of 
collision with other aircraft while airborne. Anti-collision lighting 
usually consists of white pulsating strobe-type lights. The bright 
flash of an anti-collision light is typically the first visual a pilot 
has at night of another aircraft, allowing pilots to take appropriate 
actions to avoid collisions. Under this proposal, anti-collision lights 
would be required during all operations, as the use of the anti-
collision lights can always provide awareness of an aircraft operation 
prior to and during flight.
    As stated in Sec.  108.110(c), this proposal would also permit the 
flight coordinator to reduce the intensity of, or turn off, the anti-
collision lighting if they determine that, because of operating 
conditions, it would be in the interest of safety to do so. FAA 
anticipates that there may be situations, primarily during takeoff and 
landing, where the flight coordinator may want to either reduce the 
intensity of or turn off the anti-collision lighting due to close 
proximity with the flight coordinator or other persons on the ground. 
Allowing the flight coordinator to reduce the intensity of or turn off 
the anti-collision lighting during takeoff and landing would help to 
maintain the flight coordinator's full night vision adaptation, which 
generally takes 30 minutes after exposure to bright lights. If the 
flight coordinator were to lose their night vision adaptation from 
exposure to the anti-collision light, they might no longer be able to 
ensure that the takeoff or landing area is clear for operations.
    The primary purpose of requiring lighted position lights on UA 
during night operations is to enhance the visibility of these aircraft 
to other airspace users. This requirement would help prevent midair 
collisions and ensure safe distance between aircraft, particularly in 
areas of high traffic density or when operating in proximity to manned 
aircraft. Position lights would make it easier for pilots of manned 
aircraft and other UA operators to see and track UA, thereby 
facilitating better situational awareness and decision-making in 
flight.
    Enforcing the use of lighted position lights at night would align 
with existing regulations for manned aircraft, promoting a consistent 
and predictable environment for all airspace users. This requirement 
would ensure that UA are visible to other pilots and air traffic 
control, thereby supporting safer coexistence and minimizing the risk 
of incursions or airspace violations.
2. Registration (Sec.  108.115)
    Per 49 U.S.C. 44101, all aircraft operated in the NAS must be 
registered with FAA. No person is allowed to operate a UA unless it has 
been registered by its owner, unless the aircraft meets a limited 
exception from registration.\49\ There are currently two ways to 
register a UAS. Part 47, which broadly applies to all aircraft, 
including UA, and part 48, which provides an alternate route to 
register a small UA, defined as those weighing less than 55 pounds. 
Since part 108 would cover operations of UA weighing greater than 55 
pounds, part 48 could not be used for all part 108 operations without 
making significant changes to part 48. FAA has determined that it is 
appropriate for UA operated under part 108 to follow the existing 
registration structure set out in part 47. Though small UA may operate 
under part 108, FAA is proposing that all aircraft conducting part 108 
operations would be required to follow the registration procedures of 
part 47, as proposed in Sec.  108.115(a). As a result, FAA is proposing 
to amend Sec.  48.1, Applicability, to require small UA that operate 
under 108 to use the registration procedures of part 47.
---------------------------------------------------------------------------

    \49\ Section 48.105 Registration: Small unmanned aircraft 
intended exclusively for limited recreational operations adds an 
exception to the general registration requirement for small UA for 
recreational flyers. In those cases, a Certificate of Aircraft 
Registration issued in accordance with Sec.  48.110 constitutes 
registration for all the small UA used exclusively for operations in 
compliance with 49 U.S.C. 44809 owned by the individual identified 
on the application.
---------------------------------------------------------------------------

    The web-based registration process under part 48 was designed as an 
alternative streamlined system for the registration and marking of 
small UA. Aircraft records created under part 48 only contain a minimal 
amount of data, such as the owner's name, email address, physical 
address, and phone number, the manufacturer and model of the UA, and 
the standard remote identification serial number or remote 
identification broadcast module serial number, if applicable. The part 
48 database cannot house document images, such as transfers, security 
conveyances, or airworthiness applications and certificates. Such 
documents would likely be commonplace for part 108 UAS. Therefore, any 
UAS operating under part 108 would be required to register under part 
47 (e.g., an N-number), regardless of weight. To facilitate this,

[[Page 38233]]

FAA is also proposing to amend the applicability under part 48 to 
restrict the registration of small UA operating under part 108, in 
addition to small UA that hold an airworthiness certificate. UA 
operating under part 107 may continue to be registered under the 
requirements of part 48.
    The aircraft registration requirements in part 47, along with the 
requirements pertaining to the recording of aircraft title and security 
documents in part 49, necessitate a filing and recording system for the 
collection of ownership and financial interests in aircraft. FAA 
Aircraft Registry is the official repository for all title and security 
documents affecting an interest in aircraft and all airworthiness 
applications and certificates. Contrary to part 48, part 47 does not 
restrict the eligibility for aircraft registration based on aircraft 
weight.
    It is possible that a UA currently registered under part 48 could 
obtain airworthiness acceptance under proposed part 108. However, to be 
operated under part 108, the aircraft would need to be registered under 
part 47. While it is not possible to transfer a part 48 registration to 
part 47, due to the nature of the registrations and the necessary 
information for each, a current part 48 registration holder could 
cancel that registration and then submit a new application for a part 
47 registration.
    While FAA proposes to amend part 47 to apply its registration 
requirements to part 108 operators, the Agency also considered allowing 
registration under part 48 or even imposing registration requirements 
in part 108 itself. If the registration requirements were implemented 
under part 108, they would be tailored to the particularities of 
operations under this rule. This could eliminate requests for 
information that are not available to UAS operators and issuing proof 
of registration other than a physical registration certificate. FAA 
requests comment on a potential registration process tailored to UAS 
operations under this part.

B. General Operating Rules (Sec.  108.120)

    FAA proposes in Sec.  108.120(a) that operations conducted under 
part 108 would need to be conducted with a UAS that is in a condition 
for safe operation, including both the UA and the AE. Proposed Sec.  
108.120(a) would prohibit an operator from initiating or continuing a 
flight if they know or have reason to know that the UA or the AE are no 
longer in a condition for safe operation. As noted in the 2016 Final 
Rule, FAA considers safe operation to be essential to ensure overall 
safety of flight. Determinations made of the overall condition of the 
UAS include an evaluation based on the make, model, age, type and 
completeness of continued maintenance and inspections of the aircraft 
and AE. The varied designs of possible UAS mean that FAA cannot 
prescribe every possible condition that could render a UAS unfit for 
operation. An unsafe condition could include damage to the structure of 
the UA, damaged or inoperative flight control systems, data link 
failures, or damage to propulsion systems.
    FAA proposes in Sec.  108.120(b) that operations conducted under 
part 108 would need to be conducted in accordance with the 
manufacturer's operating instructions or other procedures acceptable to 
FAA. While the manufacturer's operating instructions would be the 
authoritative source of the limits and capabilities associated with the 
operation of the UA, as discussed in section X.G, FAA recognizes that 
some operators may have additional operational considerations that may 
require deviations from the operating instructions defined by the 
manufacturer. In those circumstances, the operator may request 
additional operational flexibility from FAA by demonstrating how the 
operation could still be safely conducted. Possible permutations could 
include different ratios of flight coordinator to aircraft operations 
or operating environment conditions not considered by the manufacturer.
    FAA proposes in Sec.  108.120(c) that, except for operations 
conducted under a flight test permit under Sec.  108.470 or in 
accordance with Sec.  108.555, operations conducted under part 108 
would need to be conducted with properly installed and operational 
instruments and equipment. The manufacturer, as required under proposed 
Sec.  108.720, would develop a list of parts necessary for the safe 
operation of the aircraft, or a list of equipment that is allowed to be 
inoperative.
    Finally, as proposed in Sec.  108.120(d), FAA proposes that persons 
occupying this position would be directly responsible for, and be the 
final authority as to, the safe and secure operation of all aircraft 
under their purview. If a company has multiple operations supervisors, 
each operations supervisor would only be responsible for the operations 
of aircraft in their assigned responsibility. Similarly, FAA proposes 
to require that the operations supervisor ensure that the operator 
complies with all applicable regulatory requirements and its operations 
manual. Accordingly, the operations supervisor should demonstrate skill 
in ensuring safe operations and in management. This role would oversee 
the entire operation, or where multiple operations supervisors are 
used, their specific areas of responsibility. They must have knowledge 
of all other roles involved, as well knowledge of the UA, the AE, and 
flight plans. Though other personnel may be responsible for performing 
individual safety-of-flight actions, both before and during flight, the 
operations supervisor holds the overall responsibility and is the final 
authority for safe operations. The operations supervisor would also be 
responsible for ensuring that all applicable personnel are properly 
trained and knowledgeable before an operation commences. FAA proposes 
in Sec.  108.140 that operations conducted under part 108 would be 
limited to a speed equal to or less than what is prescribed in the 
manufacturer's operating instructions. The aircraft manufacturer is in 
the best position to know the design limits for the aircraft that they 
produce. FAA chose to use groundspeed because most small UAS lack the 
equipment to determine true airspeed and generally rely on technologies 
such as Global Positioning Systems (GPS) to determine UA speed. 
However, this poses some challenges. If a UA has a strong tailwind, it 
is possible that the true airspeed might be very low. As such, FAA 
recognizes that some UA may need to operate at higher ground speeds to 
maintain a minimum safe operating speed and FAA would provide relief 
for an operator to exceed the stated groundspeed in the manufacturer's 
operating instructions in those operating conditions.
    FAA proposes in Sec.  108.140(b) that operations conducted under 
part 108 would be limited to a weight equal to or less than specified 
for the type of operating permit or operating certificate that the 
operator is using for that operation. The weight would include the 
weight of the UA as well as the weight of any items attached to or 
carried by the UA. While part 108 would allow operations with varying 
sizes of UA weighing not greater than 1,320 pounds, FAA has proposed 
weight limitations associated with different types of operations to 
further mitigate the risks associated with BVLOS operations. For 
further information about the specific weight restrictions, see the 
descriptions of permitted and certificated operations in section VIII.
    FAA proposes in Sec.  108.145 that operations conducted under part 
108 would not be allowed to be conducted in weather conditions other 
than those described in the manufacturer's

[[Page 38234]]

operating instructions. In developing a UA for airworthiness acceptance 
under part 108, manufacturers would be required to identify which 
weather conditions the UA may safely operate in or ensure the UA has 
the capability to identify and avoid those weather conditions for which 
the UA is not designed to operate, per proposed Sec. Sec.  
108.720(a)(1)(i) and 108.890. Operators therefore would need to ensure 
the weather conditions do not exceed the design considerations and 
limitations of the UAS used in the operation.
    FAA also proposes in Sec.  108.145 that a UA that has frost, ice, 
or snow adhering to the UA prior to takeoff, except as provided in the 
manufacturer's operating instructions, would not be allowed to operate 
under proposed part 108. As with manned aviation, frost, ice, and snow 
can result in significant degradation of UA performance, including 
controllability and changes in the weight of the aircraft. Barring any 
significant mitigations identified by the manufacturer, FAA does not 
find it in the interest of safety to allow any operations under these 
conditions.
    FAA proposes in Sec.  108.150(a) that operations conducted under 
part 108 would be required to be conducted from locations that are pre-
designated and access-controlled and ensure any persons who are not 
directly participating in the operation are safely segregated from 
flight operations. This mitigation would reduce the risk posed by and 
to non-participants during any stage of the operation. Restricting 
access to only those involved in the operation would ensure appropriate 
oversight for safety of flight.
    In addition, FAA proposes in Sec.  108.150(b) that UA operated 
under part 108 would need to be monitored and controlled from a 
location that is physically located within the United States, including 
its territories and inter-island operations when operating in United 
States airspace. This would follow the same restriction that is present 
in part 107. As discussed in the part 107 final rule, the International 
Civil Aviation Organization (ICAO) recognizes UAS as aircraft and 
therefore has applied existing standards and recommended practices 
(SARPS) for aircraft to UAS. ICAO remains in the process of determining 
how the SARPS can accommodate UAS, but presently, the ICAO SARPS are 
quite restrictive for UAS. This proposed rulemaking would likely go 
beyond what ICAO currently allows for UAS. As such, FAA would restrict 
proposed part 108 to operations within United States airspace. Any 
operations outside the United States would not fit within the 
applicability of part 108. FAA considered adding an option to request 
authorization to monitor and control UAS from outside the United 
States. FAA seeks comment on whether it should expand the scope of 
Sec.  108.150 to allow UAS to be monitored or controlled from outside 
the United States.
    Finally, FAA proposes in Sec.  108.150(c) that operators must 
address physical security and seek to prevent unauthorized access to 
the operation's facilities, including controlled access areas, as 
applicable. An operator may use controlled access areas to protect 
hazardous materials before those materials are loaded onto a UA, for 
example. FAA also anticipates that, due to the size, scope, and 
complexity of operations, the operator may have other areas they deem 
sensitive and choose to utilize controlled access areas. FAA is 
utilizing performance-based language in this proposed requirement to 
provide operators flexibility with how controlled access areas are 
designated.
    FAA proposes in Sec.  108.155 that the operator would need to be 
able to determine the location of each UA during flight operations. The 
ability to determine the geographic location during operations and to 
find the UA when it is has landed during normal, abnormal, and 
emergency situations are important considerations for maintaining 
situational awareness and safety of the operation. FAA anticipates that 
most UAS will have software that will provide the operator with the 
appropriate information to determine its location.

C. ADS-B and Transponder Use (Sec.  108.160)

    FAA proposes in Sec.  108.160 that no operator would be allowed to 
operate a UA with ADS-B Out equipment in transmit mode or with a 
transponder in transmit mode under part 108. As previously discussed in 
the Remote Identification of Unmanned Aircraft final rule (86 FR 4390, 
January 15, 2021), the installation and use of ADS-B Out transmitters 
on UA may negatively affect the safe operation of manned aircraft in 
the NAS. The projected numbers of UA operations have the potential to 
saturate available ADS-B frequencies, affecting ADS-B capabilities for 
manned aircraft and potentially blinding ADS-B ground receivers. 
Currently, operators conducting operations under part 107 cannot 
operate a UA with ADS-B Out in transmit mode, per Sec.  107.53. FAA 
also prohibits the use of ADS-B Out to meet the requirements of remote 
identification, as per Sec.  89.125. The proposed restriction on ADS-B 
equipment in Sec.  108.160 is consistent with FAA's existing 
limitations.

D. Area of Operations (Sec.  108.165)

    FAA proposes in Sec.  108.165 that all operators would be required 
to obtain approval from FAA for the area of intended operations prior 
to operation. Understanding potential risks, anticipating their impact 
on both flight and ground operations, and mitigating those risks are 
all critical to safe part 108 operations. Under this proposed 
requirement, before beginning operations in a new area the operator 
would identify known hazards, mitigate such hazards with proper 
planning and effective controls, and plan for contingencies for any new 
hazards identified during operations. In developing this proposal, FAA 
utilized its ongoing experience with the authorization and oversight of 
waiver and exemption holders. In proposed Sec.  108.165(a), FAA would 
require operators to receive approval from FAA prior to beginning 
operations in an area and would expect the operator to be responsible 
for certain requirements as described below for those intended 
operations. In requesting approval from FAA for a new operating 
location, the operator would submit information to FAA that includes 
the operating area boundaries, estimated number of daily operations, 
and other operating characteristics as appropriate. FAA anticipates 
that operators would report, and FAA would collect, this information 
through the same portal as the application process uses for permit and 
certificate oversight.
    Proposed Sec.  108.165(b) would require the operator to designate 
safe alternate landing areas that the UA can reach if it is unable to 
complete the intended flight. Proposed Sec.  108.165(b) lists specific 
requirements that landing areas would have to meet to satisfy the 
proposed regulation. First, the safe alternate landing area would need 
to avoid areas where overflight is prohibited. Second, the safe 
alternate landing area would need to provide for a landing without 
posing undue hazard to persons or property on the ground. FAA has 
proposed these requirements to ensure that, in a situation when an 
immediate landing is required, the operator is prepared with an area 
that would not create a hazard to persons and property on the ground. 
In the planning of these proposed alternate landing areas, it is 
critical that operators understand that the need to land the UA in a 
timely manner is paramount for circumstances such as emergencies or 
abnormal events.

[[Page 38235]]

    In Sec.  108.165(c), FAA proposes that the operator would be 
required to designate appropriate takeoff, landing, and loading areas 
that have restricted access to only those persons participating in the 
operation and that are free of any obstructions that could pose a 
hazard to persons who are not participating in the operation. 
Designating appropriate takeoff, landing, and loading areas that have 
restricted access would ensure that only authorized people have access 
to the operating areas. This would keep unauthorized persons away from 
operating areas and lower the risk to non-participants, who may not be 
aware that an operation is in progress. In addition, FAA proposes that 
takeoff, landing, and loading areas would need to be adequate for the 
planned operation, considering such items as size, surface, 
obstructions, and lighting. FAA anticipates operators to use UA of 
various sizes and capabilities, which would also have performance 
characteristics that may require takeoff, landing, and loading areas of 
differing complexities. By requiring operators to ensure that these 
areas are adequate, operators would be required to consider the 
individual necessities of the UA and the operation.
    FAA proposes in Sec.  108.165(d) that the operator would be 
required to ensure adequate communications coverage and availability, 
and appropriate lost link procedures. As discussed in section XI.D of 
this preamble, a lost link or loss of control of the UA pose 
significant risks to aviation safety. As part of the flight planning 
for a new operational area, the operator would need to assess the 
coverage area for C2 link system configuration utilized for the 
intended operational area and verify operational status. The operator 
would not be able to commence a UAS operation if a control link is 
working improperly, whether due to a result of radio interference or 
for some other reason. The operator would be expected to resolve any 
radio interference or other spectrum complications prior to beginning 
operations in that area.
    Before beginning operations in a new area, FAA proposes in Sec.  
108.165(e) that the operator would need to ensure that the planned 
operations minimize risk to persons and property on the ground, as 
appropriate, and consider terrain and obstacles that the operator 
intends to overfly. FAA expects operators to plan for and be aware of 
the number of persons and property on the ground around operations and 
consider possible flight paths with the least presence of people and 
moving vehicles, while also considering the terrain and human-made 
obstacles the operator intends to overfly. The operator would be 
required to verify the maximum height of obstructions. To accomplish 
this, the operator could perform an area assessment or use a capable 
third party to do so.
    Further, as discussed in section VIII.C.5, Sec.  108.550(b) 
proposes to also require certificated operators to perform a ground 
risk assessment of pedestrians, vehicles, terrain, and man-made 
obstacles.

E. Preflight Requirements (Sec.  108.170)

    Ensuring the safe conduct of operations begins with determining 
that the aircraft is in a safe condition for flight and reviewing 
appropriate information concerning the operating environment. FAA has 
proposed in Sec.  108.170 that operators would be required to meet 
certain preflight requirements before conducting each operation under 
part 108.
    In Sec.  108.170(a), FAA proposes that, prior to operating under 
part 108, the operator would need to ensure that the weather conditions 
are appropriate for the intended operation, in accordance with the 
aircraft limitations specified by the manufacturer, and that are 
determined in a manner acceptable to FAA. This is because flying in 
adverse weather conditions, or in weather conditions that the UA is not 
designed to handle, may increase operational risk. Familiarity with 
forecast weather conditions is an important part of the flight planning 
process. Title 14 of the CFR contains requirements on the use of 
weather information and the level of approval required for that 
information for various operations. For example, within 14 CFR parts 
121 or 135, there is a requirement to use weather reports or forecasts 
from a source ``approved by the Administrator.''
    Aviation weather currently provides surface weather observations 
[e.g., Meteorological Aerodrome Report (METAR)] and forecasts [e.g., 
Terminal Area Forecast (TAF)] at and around many airports. These 
observations and forecasts are typically only valid out to five miles 
from the location where the observation was taken or around the airport 
the TAF was generated for. To date, FAA's current sources ``approved by 
the Administrator'' include, but are not limited to, Automated Surface 
Observing System (ASOS), Automated Weather Observing System (AWOS), and 
information provided by the National Weather Service (NWS).
    Massachusetts Institute of Technology Lincoln Laboratory (MIT/LL) 
reports \50\ from November 2017 note the sparseness of off-airport 
observations of visibility, clouds and ceiling, and surface winds. The 
report summaries state that: ``airport-specific weather information 
(e.g., METAR, TAFs, etc.) do not readily translate to conditions at 
remote launch locations, which may be 10-30 miles from the nearest 
airport . . . the results show significantly less weather information 
available to support low-altitude flight than for typical manned-flight 
profiles.''
---------------------------------------------------------------------------

    \50\ See MIT/LL, Preliminary UAS Weather Research Roadmap, ATC-
438 (November 2017), and MIT/LL, Preliminary Weather Information Gap 
Analysis for UAS Operations, ATC-437 (November 2017).
---------------------------------------------------------------------------

    FAA estimates that, for airspace below 400 feet only, around 3% of 
the continental United States and 2% of Alaska airspace is covered by 
an approved source of weather information, with most of that being on 
or near airport environments. However, given that part 108 UAS 
operations would operate primarily outside of this area of approved 
observation coverage, those operations will need additional sources of 
weather information to operate safely. FAA anticipates that some of 
this weather information gap could be filled by third-party weather 
providers or come from other non-traditional sources, such as locally 
owned and operated devices.
    As BVLOS UAS operations mature, they may require a more detailed 
and definitive set of meteorological information to operate safely. For 
BVLOS operations, the fidelity of the meteorological information would 
need to be such that the operator can determine whether the vehicle can 
safely operate within the manufacturer's limitations. Traditionally FAA 
has required operators to use weather information that was from sources 
approved or provided by FAA. However, for the reasons stated above, 
this is not practical or appropriate for most UA operations, so FAA is 
proposing to allow operators to obtain weather information in other 
ways. This could include the use of weather services provided under an 
automated data service provider construct under proposed part 146, or 
through other sources found acceptable to the Administrator.
    FAA proposes in Sec.  108.170(b) that the operator would need to be 
familiar with any airspace and flight restrictions along the entire 
route of flight, including the review of any applicable Notices to 
Airmen (NOTAMs). Another important aspect of assessing the operational 
environment is the consideration of airspace information to identify 
any known flight restrictions along the

[[Page 38236]]

route. To comply with this requirement, FAA expects the operator to 
assess the departure, enroute, and destination airspace; special use 
airspace; NOTAMs; temporary flight restrictions; and UA flight 
restrictions to ensure compliance with airspace rules and restrictions. 
As stated in proposed Sec.  108.180 and further discussed in section 
VI.G, UAS operations under this proposal would only be allowed in 
controlled airspace under certain conditions and may be subject to FAA 
authorization. If an operator did not assess this information prior to 
conducting operations, operations could transverse through controlled 
airspace and result in adverse events, such as disruptions to aircraft 
receiving ATM services or loss of separation between controlled and 
uncontrolled aircraft. Similarly, an operator would need to be familiar 
with special use airspace, NOTAMs, and any ground hazards associated 
with the flight. The operator would need to be aware of special use 
airspaces to avoid conflict or potential national security issues with 
the operations or events being conducted within those airspaces. In 
addition, NOTAMs indicate the real-time and abnormal status of the NAS 
impacting every user and concern the establishment, condition, or 
change of any facility, service, procedure, or hazard in the NAS. These 
impact UA operations as well as manned aircraft operations.
    FAA proposes in Sec.  108.170(c) that the operator would need to 
assess the population density category or categories to be overflown. 
Obtaining this information in advance would allow the operator to 
comply with proposed Sec.  108.185. For further discussion, see section 
VI.H of this preamble.
    FAA proposes in Sec.  108.170(d) that the operator would need to 
identify the location of ground obstacles and hazards associated with 
the specific flight operation being flown. Because part 108 UAS 
operations are conducted at low altitudes, the operator would need to 
be aware of structures, obstructions, and other hazards that may pose a 
risk to the specific flight operation. Awareness of these ground 
hazards would enable the flight coordinator to appropriately plan 
around or avoid such hazards that may result in adverse events when 
preparing to conduct the operation. Given the advances in geospatial 
information systems, 3D mapping software, and publications, operators 
should have access to sufficient information to be able to comply with 
this requirement. FAA seeks comment on this assumption.
    To comply with proposed Sec.  108.170(e), the operator would be 
required to ensure that the UAS are in a condition for safe operation. 
It is critical that all aircraft operated in the NAS, including UAS 
operated under proposed part 108, are in a safe condition to minimize 
risk. Being in a safe condition not only minimizes the risk for other 
aircraft in the NAS, but also minimizes the risk for persons and 
property on the ground.
    FAA proposes in Sec.  108.170(f) that the operator would need to 
ensure there are sufficient personnel available for the operation. 
While there are no specific staffing requirements under this proposal, 
an operator not having sufficient personnel necessary for their 
individual operation could present a safety risk. Increased pressure to 
``get the job done,'' and personnel taking on additional work beyond 
their duty assignment, or lack of experience with certain duties, can 
degrade the safety of the operation. Operations with insufficient 
personnel may experience mistakes with potential undesired results in 
any part of the operation. Task saturation or diversion of attention 
could create gaps in monitoring the automated systems and over-reliance 
on those systems. Incomplete knowledge and experience with those 
systems could cause errors that could lead to an incident or accident 
at various points during an operation.
    FAA is proposing in Sec.  108.170(g) that, if required by Sec.  
108.180 or Sec.  108.185, the operator would need to ensure that a 
strategically deconflicted operational intent is accepted prior to 
takeoff. As described in section VI.I of this preamble, strategic 
deconfliction is a set of functions that aid in managing conflicts 
between UAS operating under part 108.
    FAA proposes in Sec.  108.170(h) that the operator would need to 
ensure that there is enough available power or fuel, considering wind 
and forecast weather conditions, for the UAS to operate for the 
intended operational time, such that the UA can land without posing an 
undue risk to aircraft or people and property on the ground, or the 
reserve power recommended by the manufacturer, if greater, is 
satisfied. A key aspect of preflight planning involves ensuring that 
there is sufficient fuel or power to conduct the intended operation and 
land safely. Since the amount of fuel or power necessary for an 
operation may be impacted by wind and weather conditions, FAA proposes 
requiring the flight coordinator to consider these conditions in making 
the determination whether there is sufficient fuel or power to conduct 
the intended operation. FAA considered establishing and enforcing a 
standard flight time that the UAS would need to have in its power 
reserve to land safely (e.g., 5 minutes, 10 minutes, etc.). However, 
limitations should be relevant to the operation. As such, imposing a 
standard time that a UAS needs to have in its power reserve may be 
unreasonably burdensome for some UAS operations. The flight coordinator 
would be better situated to determine what constitutes sufficient power 
or fuel for their specific UAS operation.
    FAA proposes in Sec.  108.170(i) that the operator would need to 
ensure that operations would be conducted within the weight and balance 
limitations defined by the aircraft manufacturer. Compliance with the 
weight and balance limits of any UAS are critical to flight safety. 
Operating above the maximum weight limitation compromises the 
structural integrity of the UAS and adversely affects its performance. 
Operators must be aware that, even while operating within center of 
gravity limits, the UAS can be overloaded. Though the UAS manufacturer 
may specify a maximum gross takeoff weight, and the operator would need 
to comply with that limitation, there may be additional conditions that 
affect overall takeoff performance such as high elevations, high 
temperatures, and high humidity (high-density altitudes) that the 
operator could consider in determining the weight for a specific 
operation.
    Conditions such as these may require a reduction in weight before a 
flight is attempted. Operating with the center of gravity outside the 
approved limits could result in control difficulty and unstable or 
unknown flight characteristics. Operating within the center of gravity 
would ensure the UA is operating in the most stable, balanced, and 
predicted condition. As listed in section X of this preamble, under the 
proposed process for airworthiness acceptance, the manufacturer would 
need to provide weight and balance data. Therefore, because of the 
effects of an out-of-balance or overweight condition, FAA proposes that 
the operator should ensure that weight and balance will be calculated 
and conducted within the limitations defined by the aircraft 
manufacturer.
    In Sec.  108.170(j), FAA proposes that, for the safety of the 
operation, property, and people around the operation, the operator 
would need to ensure that any object attached to, or carried by, the UA 
is secure and does not adversely affect the flight characteristics or 
controllability of the UA. If not directly

[[Page 38237]]

attached to the underside of the UA during transport or if lowered 
during operations, the operator should be able to calculate weight and 
balance with emphasis on a lateral center of gravity. If during 
maneuvering forward airspeed is increased, light loads generally tend 
to shift further aft and may become unstable. Any unstable load may 
flutter, oscillate, or rotate, resulting in reduced aircraft control 
and undue stress on the UA.
    Finally, in proposed Sec.  108.170(k), the operator of a part 108 
UA would need to ensure that their UA navigation and communication 
systems are working properly. This is critical for ensuring that the 
UAS operation can be conducted successfully.

F. Operating Restrictions (Sec.  108.175)

    FAA proposes in Sec.  108.175 that an operator would not be allowed 
to operate a UA under part 108 higher than 400 feet AGL unless the 
operator is in Class G airspace and temporarily transiting steeply 
changing terrain, is operating within a 400-foot radius of a structure 
and does not fly higher than 400 feet above the structure's immediate 
uppermost limit, or needs to maneuver up to 450 feet AGL temporarily in 
order to avoid a collision.
    Like part 107 and existing UAS exemptions and waivers, FAA proposes 
to permit UA operating under proposed part 108 to operate up to 400 
feet AGL. An altitude limitation provides a necessary barrier between 
UA operations and most manned aircraft operations in the NAS. In 
addition to the altitude limitation of 400 feet AGL, FAA would require 
the altitude of the UA to be flown within a 400-foot radius of a 
structure to not fly higher than 400 feet above the structure's 
immediate uppermost limit when operating within the confines of a 
structure. This limitation has the same reasoning as the buffer of 500 
feet from manned aircraft in that manned aircraft must generally 
maintain at least 500 feet from a structure. In addition, FAA would 
permit operations to exceed 400 feet AGL if necessary to avoid a 
collision.
    This prohibition against close operation near obstacles and 
structures is intended to mitigate the risk of collision. The operating 
speed of manned aircraft is another factor that contributes to 
collisions with structures or obstacles. For most manned aircraft, the 
operating speed is much higher than the operating speed of a UAS.
    FAA does not believe that an altitude above 400 feet AGL is 
justified for part 108 UAS operations, except in the narrow 
circumstances prescribed in this part. If allowed, higher altitude UA 
operating in the NAS would potentially be unable to maintain adequate 
separation from manned aircraft. If UAS were permitted to operate above 
400 feet AGL, it could increase the risk of a collision between UAS and 
non-equipped aircraft. At this time, FAA does not have sufficient data 
to eliminate the 100-foot buffer between UA operating at 400 feet AGL 
and below and manned aircraft generally occupying airspace 500 feet AGL 
and above established in part 107. The United States aviation system is 
designed to have sufficient safety margins, as well as redundancy in 
risk mitigations. The 400-foot AGL maximum altitude proposed by this 
rule upholds those principles.
    The maximum operating altitude imposed by this rule is intended to 
limit the height of the UA above the ground over which it is flying 
AGL. It is incumbent upon the operator to maintain flight at or below 
this maximum operating altitude. Lastly, during all operations, the UA 
must be operated at an altitude that would not create a hazard to 
persons or property. Operating at an altitude that would not create a 
hazard to persons or property also means that the UA must be operated 
at a distance from a structure or obstruction to not create a hazard to 
persons or property.
    FAA recognizes, however, that certain terrain may obstruct the 
operator's ability to comply with this requirement to remain at or 
below 400 feet AGL. For example, in areas with steep terrain, such as 
open pit mines, gorges, and small canyons, it may be unsafe or 
impractical for the aircraft to dive or climb rapidly to stay no more 
than 400 feet above the terrain immediately below. Rather than require 
operators to maintain a consistent altitude of 400 feet AGL or below, 
FAA deems it would be more important for the operator to use their best 
judgment in maintaining a safe altitude and reduce any operating safety 
risks. FAA's primary objective is to ensure that UAS BVLOS operations 
promote NAS safety and efficiency. As such, FAA proposes in Sec.  
108.175(a)(1) that, in the interest of safety, the operator would be 
able to operate higher than 400 feet AGL in situations where the 
operator is briefly transiting steeply changing terrain.
    In addition, FAA proposes in Sec.  108.175(a)(2) that an operator 
may operate higher than 400 feet AGL when operating a UA within a 400-
foot radius of a structure and does not fly higher than 400 feet above 
the structure's immediate uppermost limit. Manned aircraft are not able 
to operate safely that closely to a structure, so the UAS operator 
would be able to maintain separation.
    FAA proposes in Sec.  108.175(a)(3) that the operator could 
temporarily exceed 400 feet AGL if necessary to avoid a collision. 
While it would remain incumbent upon the operator to be aware of any 
obstructions that could pose a hazard, per Sec.  108.165(c)(2) and 
maintain safe distance from other aircraft in line with the 
requirements in Sec.  108.195, FAA acknowledges that there are 
circumstances that may require the operator to temporarily climb to 
avoid a collision. One example could be ascending above 400 feet AGL to 
avoid hitting birds or other wildlife and then returning to 400 feet 
AGL or below when the hazard has passed. FAA has proposed this section 
to permit operators the leeway to exceed the 400 feet AGL limit in 
Class G airspace in their operating area to the altitude and duration 
necessary to avoid unexpected objects.
    Class G airspace is considered uncontrolled airspace. Research 
conducted by MITRE for FAA found that in Class G airspace, a drone with 
no mitigations could be expected to collide with manned aircraft 
between once every 10,000 flight hours in the most heavily used Class G 
airspace, to once every 1 million flight hours in the least used Class 
G airspace. The addition of mitigations under part 108, such as those 
described above, would substantially lower the collision risk in Class 
G airspace even further.
    FAA proposes in Sec.  108.175(b) to make clear that operators would 
be required to comply with certain other requirements like those that 
apply to part 107 and recreational operators. Proposed Sec.  108.175(b) 
provides that part 108 operations would need to comply with flight 
restrictions and other conditions codified in 14 CFR 91.133, 91.137-
91.145, and 14 CFR 99.7. Flight restrictions are established under 
certain circumstances to maintain the safety and security of the NAS. 
Scenarios warranting the establishment of flight restrictions may 
include responses to disaster areas such as wildfires and hurricanes, 
protection of sensitive sites, major sporting events, and for emergency 
and national security situations.
    FAA proposes in Sec.  108.175(c) that operators should notify the 
controlling agency for any operations planned within a military 
operating area (MOA) or on and military training route (MTR). Operators 
must always exercise extreme caution and remain vigilant of all MTRs 
and or non-regulatory SUAs. While MOAs and MTRs do not rise to the 
level of being classified as prohibited or

[[Page 38238]]

restricted areas, the potential for low level military operations are 
higher in these areas and increased awareness and precautions are 
warranted.
    Finally, similar to the restriction found in part 107, FAA proposes 
in Sec.  108.175(d) a provision that would prohibit any UAS operations 
that interfere with operations and traffic patterns at airports, 
heliports, seaplane bases, space launch and reentry sites or any 
facilities used for VTOL aircraft landing and takeoffs. Airspace 
designations as described in proposed Sec.  108.180(a) should help 
ensure UA operations do not interfere with operations at airports 
within controlled airspace. However, since many airports are within 
uncontrolled airspace, this proposal would also cover uncontrolled 
airspace where such operations could represent a higher likelihood of 
an encounter with a part 108 operation during takeoff or landing.

G. Operation in Controlled Airspace (Sec.  108.180)

    FAA proposes in Sec.  108.180(a) to enable routine BVLOS UAS 
operations in certain areas within controlled airspace at or below 400 
feet AGL when participating in strategic deconfliction and conformance 
monitoring (as described further in this section, and in section VI.I). 
Per proposed Sec. Sec.  108.180(c) and (d), airspace authorization 
would only be required in those portions of Class B, Class C, or Class 
D airspace, or within the lateral boundaries of the surface area of 
Class E airspace designated for an airport, that FAA specifically 
designates as requiring authorization. Operators would be able to 
access the remaining portions of controlled airspace without an 
airspace authorization.
    Currently, operators authorized to conduct BVLOS operations via 
exemptions or waivers must obtain an authorization from FAA to access 
controlled airspace on a case-by-case basis. As FAA moves toward 
enabling routine BVLOS operations, this process to authorize these 
operations in controlled airspace needs to become more scalable and 
less resource intensive.
    One approach FAA considered is a process similar to the one FAA 
uses for recreational and part 107 operators. Under that process, 
operators can request authorization to access controlled airspace using 
either FAADroneZone or a Low Altitude Authorization and Notification 
Capability (LAANC) service provider. (See section XII.B.6 for 
additional details about FAADroneZone and LAANC services). LAANC and 
FAADroneZone collect data about the operator, including contact 
information, location and altitude of operation, date of operation, and 
time of operation. Once the operator has authorization through LAANC or 
FAADroneZone, they usually do not have any other interaction with FAA 
prior to accessing the airspace.
    BVLOS operations in controlled airspace under proposed part 108 
would present a different regulatory construct than part 107 or 
recreational operations. An operator otherwise in compliance with part 
108 would have other touchpoints with FAA that would provide the 
minimum information that FAADroneZone and LAANC currently provide for 
part 107 and recreational operations. For example, under this proposal, 
a part 108 BVLOS operator in controlled airspace would be required to 
participate in strategic deconfliction and conformance monitoring 
services, as defined in section VI.I. As a result, FAA would not need 
to rely on a system like FAADroneZone or LAANC to have the basic 
informational touchpoint with part 108 operators. This would negate the 
need for automated approvals. Instead, FAA could limit its interaction 
to operators seeking to conduct higher risk, more complex operations 
that require individual evaluation and coordination.
    In Sec.  108.180, FAA proposes that operations at or below 400 ft 
AGL in Class B, Class C, Class D airspace, or within the lateral 
boundaries of the surface area of Class E airspace designated for an 
airport, can occur without an exemption or waiver, except for in those 
areas FAA specifically designates as requiring airspace authorization 
(as provided in proposed Sec. Sec.  108.180(c) and (d)). FAA would 
engage in a risk-based analysis to determine where BVLOS operations 
cannot be conducted safely or cannot be conducted safely without prior 
authorization. FAA anticipates these designations would be close to 
airports and other areas in controlled airspace where uncoordinated UAS 
operations could affect the safety of the NAS. The risk-based analysis 
will include the potential for primary radar returns by larger UAs 
enabled by proposed part 108. Under this proposal, operators would be 
allowed to conduct part 108 BVLOS operations in all other portions of 
Class B, Class C, Class D airspace, or within the lateral boundaries of 
the surface area of Class E airspace designated for an airport without 
prior FAA authorization, so long as the operators meet the minimum 
operating requirements proposed in Sec.  108.180. This would present a 
scalable approach to airspace access that focuses on those operations 
that require special attention.
    In many ways, airspace designations under proposed Sec.  108.180 
would be similar to the UAS facility maps that part 107 and 
recreational operators use to identify where airspace access 
authorizations are available. The principal difference between those 
maps and the process in proposed part 108 is that FAA would require 
authorization in those places where advance coordination is mandated in 
the interest of safety.
    In addition, FAA proposes additional requirements to operate in 
Class B and C under proposed part 108. The largest concentration of 
manned aircraft operating at low altitude within the vicinity of an 
airport occurs within Class B and C airspace. As a result, FAA 
considers there to be a higher risk of a collision in this airspace. To 
mitigate this risk, FAA proposes to require UA operating in Class B or 
C airspace to be equipped with a DAA system that meets the requirements 
in Sec. Sec.  108.825 and 108.195. FAA also proposes to require UA 
operating in Class B or C airspace to detect and avoid manned aircraft 
that are not broadcasting their position via ADS-B or an electric 
conspicuity device. FAA recognizes that most aircraft operating in 
Class B or C airspace are otherwise required to broadcast their 
position via ADS-B or an electronic conspicuity device. Nonetheless, 
under certain circumstances, aircraft could be operating in this space 
without ADS-B or an electronic conspicuity device. For example, an 
aircraft could be experiencing an equipment failure or could have 
received authorization from ATC to deviate from these requirements. FAA 
seeks comment on whether these requirements are appropriate mitigations 
to address the risk of collision with manned operations in this 
airspace and any information that provides more insight into if, and to 
what extent, operations with ADS-B Out turned off happen in controlled 
airspace below 500 feet.
    Designated airspace requiring prior authorization would be compiled 
annually in FAA Order JO 7400.[XX], which FAA would incorporate by 
reference into Sec.  108.180. FAA would then publish periodic 
designation updates for airspace requiring prior authorization in the 
Federal Register and seek public comment through an NPRM. After 
considering comments and making any appropriate adjustments, FAA would 
publish the adopted designation updates in a final rule. At the end of 
the year, FAA would apply the updates to FAA Order JO

[[Page 38239]]

7400.[XX+1] and then incorporate the new version of the Order by 
reference. The currently incorporated version of FAA Order JO 7400.[XX] 
would be available on FAA's website, along with any periodic updates. 
In addition to making these designations available on its website, the 
agency anticipates making electronic information available for service 
providers to incorporate into their UAS information service offerings.
    FAA further proposes in Sec.  108.180(a) to require operators to 
conduct operations at 400 feet AGL or below and to use strategic 
deconfliction and conformance monitoring services that meet the 
requirements of Sec.  108.190 (see section VI.I). The purpose of these 
requirements would be to mitigate the risk of collision with other 
aircraft. FAA has identified several important risk reductions 
associated with strategic deconfliction and conformance monitoring; the 
functionality of both capabilities is described in greater detail in 
section VI.I.
    First, strategic deconfliction \51\ would reduce the risk of 
collision between UA. By definition, controlled airspace exists over 
and around airports which, in turn, serve major population centers. 
Where there are greater concentrations of people, FAA anticipates that 
there would be UA operating in closer proximity to people than in less 
densely populated areas. Operators who provide a service to people in 
urban environments may also be conducting more frequent operations than 
those in more rural areas. Operators may also be limited in room to 
maneuver in controlled airspace due to natural or human-made obstacles. 
Given these additional challenges to operating in controlled airspace 
in addition to the proximity and frequency of operations, FAA 
determined that BVLOS operations would present an increased risk of 
collision in these areas. FAA determined that improving operators' 
situational awareness of other operations through strategic 
deconfliction services would help reduce this risk.
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    \51\ Strategic deconfliction is discussed in section VI.I.
---------------------------------------------------------------------------

    Second, using strategic deconfliction services would also help 
reduce the risk of UA having near misses and engaging in avoidance 
maneuvers to avoid each other. Controlled airspace is highly structured 
and requires aircraft to operate in their designated areas to avoid 
conflicts. ATC manages controlled airspace to maintain the structure 
and separation necessary for the safety of the airspace. It is not 
necessary, however, for FAA to provide these types of services for UA 
operating at 400 feet AGL or below due to the extremely low likelihood 
of interaction with manned aircraft. Strategic deconfliction would 
provide the situational awareness for operators to understand where 
other UA are operating or intend to operate. This would help provide 
predictability and structure at 400 feet AGL and below that would help 
reduce the risk that UA would have an unexpected encounter or near miss 
that would require avoidance maneuvers. This would be particularly 
helpful in areas with a high density of UAS operations, as it would 
reduce the likelihood of a cascading set of uncoordinated maneuvers 
that could introduce risk to both UAS and manned aircraft operating in 
the area.
    Third, using strategic deconfliction services would enable NAS 
users to participate in a data exchange network that would benefit the 
entire community of NAS stakeholders. Flight notification would allow 
the operator to share relevant operational information with other data 
exchange networks and users, including manned aircraft. For manned 
aircraft operating at 400 feet AGL and below, this would provide 
information that could help mitigate risk associated with BVLOS and 
aircraft not broadcasting their position using ADS-B Out equipment 
operating in the same airspace. For example, manned aircraft and UA 
could use this information for operational prioritization. FAA 
anticipates that the demand for UA operations in controlled airspace 
around major metropolitan areas would continue to grow, causing 
interactions between lower priority routine operations and higher 
priority emergency or first responder operations (manned or unmanned) 
to become more frequent. Universal exchange of information would 
facilitate operational prioritization, to avoid preventable 
interference with priority services.
    In Sec.  108.180(a), FAA also proposes requiring conformance 
monitoring in controlled airspace to help provide predictability, 
structure, and the necessary situational awareness to reduce risk 
associated with introducing UA operating BVLOS at 400 feet AGL or 
below. Conformance monitoring would provide notice to users when a UA 
does something unexpected or inconsistent with its previously indicated 
operational plan. Conformance monitoring would make NAS-users aware of 
BVLOS UA operating off-nominally.
    Conformance monitoring would help reduce risk in several ways. 
First, conformance monitoring would notify other users of off-nominal 
conditions in the NAS that may require additional action to maintain 
safe operations. Notification would provide situational awareness to 
help NAS users react and adjust operational plans as necessary to 
maintain safe operations. Second, conformance monitoring would provide 
an operator important information about its own operations. A BVLOS 
operator could use conformance monitoring to understand when off-
nominal conditions occur, allowing for real-time adjustment during the 
operations. Third, operators, equipment manufacturers, service 
providers, and regulatory agencies could use conformance monitoring 
data to study and identify the causes of off-nominal operation. 
Understanding why off-nominal operations occur and what their impact is 
on safety would help FAA and other stakeholders improve safety and 
efficiency for BVLOS operations at 400 feet AGL or below.

H. Operations Over People (Sec.  108.185)

    Part 107 currently allows for operations over people; however, part 
107 is limited to UA weighing under 55 pounds and includes restrictions 
on how operations over people may be conducted. Under part 107, 
operations over people may only be conducted over persons directly 
participating in the operation or located under a covered structure or 
inside a stationary vehicle that can provide reasonable protection from 
a falling UA, or if the operation complies with categorical 
requirements. The categorical eligibility requirements for operations 
over people under part 107 are based on aircraft weight, compliance 
with aircraft impact severity limits, and FAA-accepted DOC.
    Currently, to operate a UA under part 107 over people, an operator 
must either (1) operate in compliance with part 107 subpart D; (2) 
request a waiver under part 107; or (3) obtain a type certificate. If 
the UA weighs 55 pounds or more, the operator must obtain a 49 U.S.C. 
44807 determination for the specific aircraft and operation and, at a 
minimum depending upon location and type of operation, an exemption 
that provides relief from several part 91 and part 61 regulations that 
do not apply to UAS.
    As noted in section III.A.2, the current part 107 process is 
limited in scalability. Part 107 was developed for VLOS operations, 
small UA, and individual pilots operating a single UA. As such, the 
part 107 regulations allowing operations over people and related waiver 
provision were crafted with this limited scale in mind. Proposed part 
108, however, would allow for a much larger scale of operations, which 
merits the proposed approach for operations over people.

[[Page 38240]]

    A calculation based on population density can be used as a general 
estimation for ground risk to people. As the population density 
overflown increases, there is a corresponding increase in the risk of a 
person being harmed by a UA crash. Since some portion of UAS operations 
are expected to be driven by demand from the population nearby, such as 
package delivery, FAA anticipates that increasing the required 
mitigations as the overflown population increases would help mitigate 
risks in a proportional fashion.
    In Sec.  108.185(c), FAA is proposing five categories of ground 
risk to people based on population density for part 108. The proposed 
population categories seek to find a balance between risk and 
increasing integration of UAS in the NAS. Though FAA strives to 
establish performance-based regulations where possible, in this case, 
prescriptive requirements are appropriate to ensure that is no 
ambiguity when determining a population density level (i.e., one 
operator's determination of population density level would not differ 
from another's). This would ensure applied mitigations would be 
consistent across operators. This would be especially important with 
strategic deconfliction, which relies on all UA complying with the 
requirement for it to mitigate risk successfully.
    The categories would be defined by metrics that could be assessed 
consistently by independent users and regulators. FAA proposes to use 
the Oak Ridge National Laboratory's LandScan USA product as a source of 
population location and density to assess population density for low-
risk UAS BVLOS operations considered under this rule. The LandScan data 
is accessible in machine-readable format at no cost. FAA's proposal 
would require the use of the appropriate LandScan data set to determine 
population density, including proper selection of day or night data. 
LandScan USA updates annually, which ensures accurate population 
density data. FAA intends to provide guidance on the implementation of 
new data published by LandScan following the annual update.
    LandScan USA is partially based on census data and the data is 
processed to reflect the estimated location of people during both day 
and night. This publicly available data is free to access and can be 
analyzed with common mapping software. FAA anticipates that UAS 
operators, service providers, and other industry stakeholders may be 
interested in developing specialty applications to process and share 
the LandScan data.
    FAA expects that there would be various methods to access this 
data. Some operators may not choose to take on the determination 
themselves and look to service providers for a ground risk assessment. 
Some operators may fully automate this ground risk analysis into their 
automated flight planning software. The LandScan website also offers a 
viewing application. While the map on the LandScan website is not as 
precise as the downloadable data, it can be useful in understanding the 
general population density of an area. The LandScan website map does 
not give exact population count nor measure distance, both necessary 
for making a final decision about which population density category an 
operation falls within. FAA is considering publishing a map, similar to 
the UAS Facility Map for LAANC data, which would assist operators in 
determining population density categories. FAA invites comments on 
whether this would be helpful or desirable.
    All operators would need to reach the same conclusion for the 
population density category for any point in the NAS. This would ensure 
that all operators in that area will enact the same minimum level of 
mitigations. Knowing what mitigations other operators would be required 
to employ would create certainty for an operator. As such, FAA is 
proposing using the LandScan data to determine the population density 
category for a specific place.
    FAA considered including a ``shelter factor'' in the population 
density determination to account for the protection offered by a 
building. However, FAA decided to not include it in proposed Sec.  
108.185. The static nature of the population density data does not 
account for the ratio of time spent inside and outside of buildings, 
nor does it account for abnormal events which could cause people to go 
outside unexpectedly. In addition, the ability of a building to protect 
its occupants from a falling UA is not assumed, particularly with 
larger and heavier UA.
    Each population density category would have operational 
restrictions. Each category level would build upon the prior level, 
layering on mitigations as deemed appropriate for the additional risks 
posed by increased population density. The requirements of each 
category of operations over people would include the mitigation(s) for 
that level and all the mitigations of numerically lower levels, with 
the exception of Categories 2 through 5 not having to follow the 
Category 1 requirement to stay away from people. For example, an 
operation in Category 4 airspace would need to comply with the 
mitigations of Category 2 and 3 as well as the Category 4 mitigations. 
For operations in Categories 3, 4, and 5, FAA intends to address the 
ground risk over areas of increasing population density by requiring 
the use of strategic deconfliction that meets the requirements of Sec.  
108.190.
    The following descriptions of the five categories of population 
density describe why certain mitigations would be required at 
increasing levels of density. The mitigations would be layered on at 
increasing category levels, such that a higher-level area would require 
the mitigations applied at all lower levels (with the exception of 
category 1's mitigation), plus additional mitigation(s) at that level. 
This graduated approach to risk management is designed to 
proportionally add safety mitigations to reduce risk of harm to people 
on the ground.
1. Category 1 Operations
    FAA proposes in Sec.  108.185(c)(1) that Category 1 areas would be 
those with few to no people, defined as being farther than 1 statute 
mile from any LandScan USA cell which contains 10 or more people. In 
addition, any operations that are unable to comply with the 
requirements for Category 2 would be limited to this category. This 
would be the lowest category with the fewest number of mitigations 
being applied to the operation. As a result, Category 1 would be the 
most restrictive in terms of location regarding flights over higher 
population density. While all part 108 operations would be allowed to 
operate in Category 1 airspace, those permitted operations that would 
be limited to Category 1 would be ones that pose a higher risk to 
persons and property on the ground. As such, it is critical to operate 
in airspace over areas with very low population densities.
2. Category 2 Operations
    FAA proposes in Sec.  108.185(c)(2) that under Category 2, the 
operational area would cover locations where people are expected near 
the flight path, but at low densities, such as rural areas found near 
farms. This would be defined as being within 1 statute mile of a 
LandScan USA cell which contains 10 or more people. In areas of this 
level of population density, operations would be more likely to be 
targeted toward mission types which overfly fields and infrastructure, 
such as agricultural and inspection missions, which generally have 
fewer people than areas in which

[[Page 38241]]

package delivery would be likely to be more prevalent.
    Because of the increased risk to the overflown population compared 
to Category 1, FAA proposes to preclude Category 2 operations from 
using radio frequency devices that operate in accordance with 47 CFR 
parts 5 and 15 in their C2 systems. These radio frequency devices 
operate on specific radio frequency spectrum allocations in a manner in 
which all users have equal access. As such, systems and equipment that 
use that spectrum should expect harmful radio frequency interference 
anytime during use. This harmful interference could prevent the UA from 
staying in its intended flight area or from being directed by an 
operator to perform avoidance maneuvers from other traffic.
    The likelihood of the harmful interference would be expected to 
increase commensurate with increasing overflown population since many 
household consumer electronics operate on these same radio frequencies. 
Because of this, FAA proposes to manage the risks associated with 
spectrum interference of the C2 link by precluding operators from 
relying on radio frequency devices that are susceptible when in 
Category 2 operations.
3. Category 3 Operations
    FAA proposes in Sec.  108.185(c)(3) that Category 3 operational 
areas would include areas of moderate population, such as developments 
and single-family homes, which are often located within a few miles of 
small, higher density areas such as shopping centers or schools. 
Specifically, proposed Category 3 would be defined as being within 1 
statute mile of a LandScan USA cell which contains 25 or more people. 
Package delivery operations under this proposal would drive portions of 
the quantity of UAS missions to higher population density levels.
    Because Category 3 operations would be conducted over a population 
density greater than that of Category 2, FAA proposes to increase the 
mitigations in these areas to enhance and further protect associated 
ground risks. Therefore, FAA is proposing an additional mitigation for 
Category 3 and higher categories: the requirement to use a strategic 
deconfliction capability. Simulations have shown that using strategic 
deconfliction, a process of reserving segments of an intended path for 
the time the UAS is expected to occupy it, can reduce UA-UA collisions 
drastically when nearly all operators in the same area comply (see 
section VI.I for extensive discussion and rationale for this 
requirement).
    FAA found that strategic deconfliction dramatically reduces the 
likelihood of ground-based injuries or fatalities by reducing the 
likelihood of collision between UA. However, since Category 1 and 2 
operations would be limited to areas that already have very low 
population densities, the likelihood of ground-based injury or fatality 
would already be low. Fewer simultaneous BVLOS operations would be 
expected in such areas, and any falling debris would be much more 
likely not to fall on a person. Therefore, FAA determined that there 
would be marginal additional safety benefit to requiring use of 
strategic deconfliction when operating above Category 1 and Category 2 
areas. By contrast, Category 3 areas are expected to include suburban 
developments where operations such as package delivery and 
infrastructure inspection would be more likely to occur, thus there 
would be an increased risk to people outside at certain times of day if 
strategic deconfliction is not required.
4. Category 4 Operations
    FAA proposes in Sec.  108.185(c)(4) that Category 4 operational 
areas would include areas such as shopping centers and multifamily 
housing. This would be defined as being within 0.5 statute mile of a 
LandScan USA cell which contains 100 or more people. FAA anticipates 
that many Category 4 areas of operations may be of higher risk to 
persons and property, as these areas allow for flight over increasingly 
populated areas. As referenced in section IV of this preamble, FAA 
would consider the UA airworthiness acceptance to meet an acceptable 
level of reliability for all operations under this proposal. Therefore, 
operational reliability remains a mitigating risk factor for any higher 
risk operation.
    FAA proposes that operators would be required to obtain an 
operating certificate to operate in Category 4 operating areas, subject 
to certain limitations depending on the type of operation. As further 
described in section VI.O of this preamble, operations conducted with 
an operating certificate would be required to have specific manuals and 
procedures accepted and approved by FAA. This requirement would involve 
FAA evaluation to ensure specific practices and procedures are taking 
place in an effective and safe manner. In addition, operations 
conducted with an operating certificate would require a level of 
routine FAA surveillance to ensure that these practices and procedures 
continue to meet the specific standard. With this added level of 
initial and continued oversight, along with the limitations on the 
types of operation that can be conducted under a certificate in 
Category 4 areas, risk under Category 4 would continuously be evaluated 
and mitigated.
5. Category 5 Operations
    FAA proposes in Sec.  108.185(c)(5) that Category 5 operational 
areas would include locations like major metropolitan downtown areas. 
Category 5 would be defined as being within 0.5 statute mile of a 
LandScan USA cell that contains 2,500 or more people. In mitigating 
risk in what FAA considers the highest ground risk category, FAA 
proposes that the UA would need to be equipped with a DAA system that 
meets the requirements in proposed Sec.  108.825 and Sec.  108.195, and 
additionally can detect and avoid aircraft that are not broadcasting 
their position via ADS-B or an electric conspicuity device. At this 
level of ground risk, the system would need to be agnostic to the 
intruder aircraft's equipage and would need to detect all airborne 
aircraft. Requiring a DAA capable of detecting all airborne traffic 
would ensure that persons on the ground would be protected from any 
potential debris from an airborne collision. Due to the high volume of 
persons on the ground in an area designated as Category 5, the 
potential for persons to be impacted by fallen debris or large pieces 
of aircraft would be greater should an airborne collision occur. By 
requiring a DAA system capable of detecting all aircraft, the risk of 
collision would greatly be reduced, which also further reduces the 
likelihood of hazards to persons on the ground.
    FAA welcomes comments and information that provides more insight 
into if, and to what extent, ADS-B Out off operations happen in dense 
urban areas below 500 feet. In addition, FAA has issued some operators 
authorizations to operate in mode C veils without transmitting ADS-B 
Out, however, FAA does not have sufficient data on how often, or if, 
ADS-B Out operations are conducted below 500 feet AGL, nor on the 
necessity of such operations.
6. Operations Over Open-Air Assemblies
    In addition to the population density categories, proposed Sec.  
108.185(b) would prohibit all UA operations over open-air assemblies of 
persons unless specifically authorized by FAA. FAA has determined that 
the likelihood of impact with persons would greatly

[[Page 38242]]

increase should a UA have an airborne collision or failure during 
operations over open-air assemblies of persons. Generally, open-air 
assemblies are areas of large gatherings of persons, but other areas 
can also be considered open-air assemblies. FAA considers open-air 
assemblies of persons on a case-by-case basis. For example, in an FAA 
legal interpretation, FAA determined that a picnic area, if it is 
sufficiently populated, could be an open-air assembly of persons, as 
could a beach.\52\
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    \52\ See FAA Legal Interpretation addressed to Banner Tow USA 
(March 3, 2010).
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    Based on the high probability of injury to persons in the event of 
a malfunction or operator error, FAA proposes that the safest means to 
protect open-air assemblies of persons would be to prohibit all 
operations from operating over open-air assemblies of persons, unless 
otherwise authorized by FAA. This would also prohibit transient 
operations over open-air assemblies of persons. Given the low altitude 
of operations, higher potential UA weight, and minimal options for 
maneuverability should an airborne collision or failure occur, 
sustained operations would likely impact persons directly below. During 
transient operations, the UA's current direction of flight would likely 
be the trajectory for impact. A UA failure with a forward momentum may 
create a larger debris field with a trajectory directly into the open-
air gathering. Furthermore, UA intended for operation under this 
proposed rule may weigh 1,320 pounds, significantly greater than the 55 
pounds permitted for certain transient operations under part 107. The 
risk associated with transient operations and the potential for 
greatest impact is something that cannot be broadly mitigated at this 
time and must be evaluated on a case-by-case basis.

I. Use of Strategic Deconfliction and Conformance Monitoring (Sec.  
108.190)

    FAA proposes in Sec.  108.190(a)(1) to require part 108 operators 
conducting their operations in controlled airspace to use approved 
capabilities for strategic deconfliction and conformance monitoring. In 
addition, under proposed Sec.  108.190(a)(2), part 108 operators flying 
over a population density of Category 3 or higher would be required to 
use an approved capability for strategic deconfliction. Operators may 
meet these respective requirements by opting into using an authorized 
automated data service provided by an appropriately certificated 
service provider under proposed part 146, or by receiving their own 
part 146 certificate and authorization so that the operator can self-
provision the service. This is so long as the service provision meets 
part 146 requirements to provide reasonable and non-discriminatory 
access to airspace and adhere to other procedural requirements for all 
users of the service.\53\ For further discussion on part 146, see 
section XIII of this preamble.
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    \53\ FAA emphasizes that automated data service providers do not 
have the authority to provide operators with access to the NAS, as 
that authority resides solely within FAA. However, certain 
services--such as strategic deconfliction--have the capability to 
coordinate its user's operational intent with others in the network, 
therefore may block that space for a specific time, which may 
inadvertently result in non-equitable treatment of aircraft 
operators. FAA has established a priority of operations schema, 
providing guidance to operators in identifying priorities of 
operations, and providing an indication of whether conflicts can 
exist among operations at the same priority level. FAA's priority 
schema, for applicable services, is addressed in AC 146-1, available 
in the public docket for comment.
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1. Description of Strategic Deconfliction and Conformance Monitoring
    In proposed Sec. Sec.  108.190(b) and (c), FAA sets forth 
performance-based requirements for performing strategic deconfliction 
and conformance monitoring.\54\ FAA proposes in Sec.  108.190(b) that 
having a strategic deconfliction capability--required in both 
controlled airspace and when flying over a population density of 
Category 3 or higher--would mean being able to perform strategic 
conflict detection and resolution prior to takeoff, and in relation to 
other UA operations that are discoverable at that time, as well as 
being able to maintain a target average conformance to all operational 
intents that are utilized by the operator.
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    \54\ FAA derived definitions for strategic deconfliction and 
conformance monitoring, as well as several terms used in the 
regulatory text, from ASTM F3548-21, Standard Specification for UAS 
Traffic Management (UTM) UAS Service Supplier (USS) 
Interoperability, which is an industry consensus standard.
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    The first requirement for strategic deconfliction is a preflight 
function; it is the ability to perform strategic conflict detection 
prior to takeoff and in relation to other UA operations that are 
discoverable at that time.\55\ This capability would check the 
operator's operational intent against conflicts with other discoverable 
operational intents.\56\ In addition to detecting conflicts, through 
the ability for strategic conflict resolution, strategic deconfliction 
provides the operator with an opportunity to adjust their operational 
intent (for example, by following a different path, flying at a 
different altitude, or departing at a different time) until a conflict-
free route is found.
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    \55\ See proposed Sec.  108.190(b)(1).
    \56\ In proposed Sec.  108.5, FAA defines operational intent as 
a volume-based representation encapsulating the intended flight path 
for a UAS operation and comprising one or more overlapping or 
contiguous 4-dimensional volumes defined by length, height, width, 
and a beginning and ending time.
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    The second requirement for strategic deconfliction is to achieve a 
target average conformance when operating the UA in accordance with the 
operational intent. A target average conformance is a lagging indicator 
of how safely and efficiently the operator flew the strategically 
deconflicted routes. The operator's automated data service provider 
would support this function by calculating how often the operator 
stayed within its operational intents and then notifying the operator 
if the value were to fall below an established threshold.\57\
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    \57\ This calculated value would be provided by the automated 
data service provider on a recurring basis for the duration of the 
flight operation and is generally represented as a percentage.
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    UAS operators and service providers would not be required to report 
the target average conformance value to FAA on an ongoing basis. 
However, FAA would be able to verify these values through compliance 
and safety assurance activities via the operator-reported data in 
accordance with proposed Sec.  108.45 in any instance of failure, 
malfunction, or defect in an authorized service. Furthermore, FAA may 
verify these values by inspecting records maintained by the operator's 
automated data service provider certificated under part 146, in 
accordance with Sec.  146.330.
    In addition to strategic deconfliction, UAS operated in controlled 
airspace would also be required to have a conformance monitoring 
capability provided by an automated data service provider certificated 
under proposed part 146.\58\ FAA proposes in Sec.  108.190(c) that this 
capability would need to include two specific functions. The first 
function would be to provide time-sensitive alerts to operations 
personnel whenever the UA exits its operational intent, consistent with 
criteria or parameters established prior to takeoff. The second 
function would be to communicate information to other airspace users 
and FAA about the alert--via means acceptable to FAA.\59\
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    \58\ A service providing conformance monitoring for a UAS 
operation is required to also provide strategic deconfliction for 
the operation. This is further discussed in AC-146, available in the 
docket for this proposed rulemaking.
    \59\ When communicating information about alerts to FAA, FAA 
generally anticipates that only alerts that result in safety 
concerns would need to be communicated immediately to the Agency. 
For example, alerts regarding operational intents transitions from a 
conforming to a nonconforming state may not pose a safety concern 
because the non-conformance is expected and may only be temporary 
until conformance is re-established. Such alerts would not need to 
be communicated to FAA immediately. However, alerts regarding 
operational intents transitions to a contingent state may pose a 
safety concern; such alerts are considered time-sensitive and would 
need to be communicated to FAA immediately. Further guidance on 
information regarding alerts that need to be communicated to FAA, 
including FAA criteria for identifying those alerts, is discussed in 
AC-146, available in the docket associated with this rulemaking.

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[[Page 38243]]

    An alert to the operator of a non-conformant UA would help the 
operator gain and maintain situational awareness of their aircraft by 
notifying the operator of the need to take action to bring the UA back 
into the approved operational intent. Making the alert available to 
other NAS users would enable further collision risk reduction by making 
impacted operators of nearby UAS and manned aircraft aware of the off-
nominal operation, allowing those operators to determine their best 
course of action to avoid a collision.\60\ Finally, making the alert 
available to FAA would enable FAA to maintain the safety of aircraft 
operations in controlled airspace.
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    \60\ FAA anticipates that manned aircraft may choose to 
participate in the UTM network to maintain situational awareness of 
UAS operations nearby. Manned aircraft who choose to do so would be 
able to receive alerts, provided they subscribe to receive push 
notifications for a given area of interest.
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    Proposed Sec.  108.190(d) states that, unless otherwise authorized 
by FAA, operators would need to meet the requirements in Sec. Sec.  
108.190(b) and (c) by using a service provider certificated under 
proposed 146 with the appropriate service authorization. Operators 
could choose to either self-provision the necessary services described 
above by applying for and receiving their own certificate and 
corresponding service authorization under proposed part 146 or use 
another certificated service provider to provide the service for them. 
These options are meant to strike the optimal balance between ensuring 
airspace safety, while providing a degree of flexibility to UAS 
operators. Some operators may choose to build their own service that 
includes features uniquely suited to their own needs, while other 
operators may prefer to shop across an open and competitive marketplace 
of qualified services. Overall, FAA anticipates automated data service 
providers would offer a range of products with various price points and 
additional value-added features for UAS operators.
2. Requiring Use of Strategic Deconfliction and Conformance Monitoring
    In 2022 and 2023, in response to BVLOS ARC recommendation TP 
2.2,\61\ FAA contracted with Johns Hopkins University Applied Physics 
Laboratory to conduct extensive simulation-based research of UAS 
interactions using USS to provide strategic deconfliction to determine 
the safety benefit of the functionality and to inform FAA policy about 
its use, including for this rulemaking. The simulation environment 
represented commonly expected UAS mission profiles, vehicle behavior, 
airspace restrictions and variations in population density. In total, 
the Applied Physics Laboratory conducted more than 450,000 airspace 
simulations representing nearly 94 million UAS flight hours, the 
research showed midair collisions between UAS were about 100 times less 
likely to occur when strategic deconfliction was used by all UAS, 
compared with simulations in which UAS did not use strategic 
deconfliction.\62\ The use of strategic deconfliction resulted in a 
corresponding two-order-of-magnitude decrease in the rates of ground-
based injuries or fatalities when simulated over a wide range of 
locations and variations in population density.\63\ However, with 75 
percent of UAS participating in strategic deconfliction, the midair 
collision rate decreased by only about half. This is a significantly 
higher number of midair collisions, which occurs because non-
participating UAS would follow routes that would intersect with 
operational intents, resulting in collisions in some instances.
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    \61\ ARC recommendation TP 2.2 states: ``FAA and NASA should 
conduct a study to determine what level of aircraft operations in a 
defined volume of the airspace would trigger the need for mandatory 
participation in federated or third-party services.'' The ARC 
recommendation further mentioned that an ``interoperable safety 
services such as strategic deconfliction'' is an example of one of 
these services.
    \62\ Johns Hopkins Applied Physics Laboratory, Initial Safety 
Criticality Assessment of Unmanned Aircraft System Traffic 
Management (UTM) Strategic De-Confliction and Impacts to Beyond 
Visual Line of Sight Operations (2022) (provided in docket).
    \63\ See Zanlongo, S., Ground Risk Assessment Report for Urban 
UTM Operations, AOS-23-1252 Version 1 (2023) (provided in docket).
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    Separate from this research, the ASTM International USS 
Interoperability Workgroup conducted a series of analyses between 2020 
and 2023 to characterize the safety benefit of strategic deconfliction 
services. The three independent modeling efforts yielded similar 
results indicating significant reduction in collision risk for UAS 
using strategic deconfliction, compared with using no strategic 
deconfliction. ASTM International published this safety case framework 
for strategic deconfliction in appendix X4 of the Standard 
Specification for UTM UAS Service Supplier Interoperability \64\ with a 
representative safety analysis resulting in a 97.9% reduction in midair 
collisions using strategic deconfliction. This is within the same order 
of magnitude of the collision risk reduction found in FAA's research 
with Johns Hopkins University. The combined results from FAA and ASTM 
workgroup analyses--that were conducted separately and used different 
approaches--provide a strong body of evidence that requiring the use of 
strategic deconfliction is highly effective at reducing midair 
collisions between UAS.
---------------------------------------------------------------------------

    \64\ Standard Specification for UAS Traffic Management (UTM) UAS 
Service Supplier (USS) Interoperability, ASTM F3548-21 (2022), 
www.astm.org/f3548-21.html.
---------------------------------------------------------------------------

    The strategic deconfliction model is less effective if there is not 
an inflight means, such as conformance monitoring, to verify that UAS 
are flying within their operational intents. The Applied Physics 
Laboratory research indicated that deviations outside of those 
operational intents could increase collision risk with another UAS, 
even if it is operating in its own strategically deconflicted 
operational intents nearby.\65\ Separately, conformance monitoring 
capabilities have been demonstrated in the UTM Pilot Program (UPP) and 
UTM Field Test (UFT) scenarios to be effective at further reducing 
collision risk, especially if the UAS did not have DAA that could 
recognize and maneuver away from other UAS.\66\
---------------------------------------------------------------------------

    \65\ Zanlongo, S., Conformance Monitoring Assessment Report for 
Urban UTM Operations, AOS-23-1253 Version 1 (2023) (provided in 
docket).
    \66\ FAA, UTM Field Test (UFT) Final Report (Nov. 6, 2023), 
www.faa.gov/uas/advanced_operations/traffic_management/UFT-Final-Report.pdf.
---------------------------------------------------------------------------

    Furthermore, beginning in the fall of 2023, FAA established the UTM 
Key Site Operational Evaluation in North Texas. This initiative 
establishes partnerships with operators and UAS Service Suppliers (USS) 
\67\ and works with suitable participants in attaining the necessary 
exemptions to operate BVLOS at a key site. As discussed further in 
section XIII, USS are UAS-specific automated data service providers and 
form a crucial component

[[Page 38244]]

in the development of the UTM ecosystem. FAA anticipates that USS will 
coalesce into networks that provide all manner of services necessary 
for full integration of UAS including, but not limited to, strategic 
deconfliction and conformance monitoring services.
---------------------------------------------------------------------------

    \67\ An automated data service provider that fulfills the 
strategic deconfliction or conformance monitoring functions, whether 
self-provisioned by the operator, or deployed by another person, is 
referred to as a USS, a provider of particular type of UAS services 
to the UTM ecosystem.
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    FAA has learned through data collection and observation of the UTM 
Key Site Operational Evaluation that industry can effectively self-
govern many aspects of standing up and running a USS Network.\68\ This 
effectiveness was a result of industry committing to adhere to an 
interoperability standard, in this case ASTM F3548-21, which has a 
performance target and feedback mechanism for operators. This self-
governance included mechanisms for the automated data service providers 
to measure and track each operator's conformance rate over time. It 
also provided opportunities for operators whose conformance rate was 
too low to come into compliance with the expected performance target. 
As part of this industry-led initiative, FAA would issue a letter of 
acceptance to an automated data service provider, who has been paired 
with a UAS operator, if the pair has successfully demonstrated that 
their automated data service is effective in managing UA to UA 
collision risk.\69\
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    \68\ Per the UTM Concept of Operations v2.0 (Mar. 2, 2020), 
www.faa.gov/sites/faa.gov/files/2022-08/UTM_ConOps_v2.pdf, USS 
Network is an amalgamation of USSs connected to each other, 
exchanging information on behalf of subscribed operators. The USS 
Network shares operational intent data and other relevant details 
across the network to ensure shared situational awareness for UTM 
participants.
    \69\ Each FAA-issued letter of acceptance to an automated data 
service provider compliments an FAA waiver or exemption issued to 
the UAS operator paired with that same provider. While the waiver or 
exemption issued to the UAS operator highlight the operational 
conditions or limitations the operator needs to abide by to deviate 
from FAA's requirements, the letter of acceptance documents FAA's 
analysis of industry's self-governance documents and the automated 
data service's testing results.
---------------------------------------------------------------------------

    Based on the success observed, FAA issued 2 letters of acceptance 
to automated data service providers in July 2024--one to Zipline and 
another to Wing. In the letter of acceptance issued to the automated 
data service providers, FAA highlighted its findings that using 
strategic deconfliction is a safe and effective means of managing 
collision risk among UA flying simultaneously, by multiple operators, 
and in the same area. In addition, FAA took the opportunity from this 
industry-led initiative to develop a streamlined regulatory approval 
process of certain automated data services. The UAS industry has 
expressed to FAA the need for approving certain automated data 
services, in this case strategic deconfliction, to scale their UAS 
BVLOS operations safely. As a result, FAA proposes the creation of part 
146 in this rulemaking, allowing UAS operators to scale their BVLOS 
operations, given a service's proven safety benefit. For a further 
discussion FAA's proposal for regulating automated data services 
providers, and their services--such as strategic deconfliction or 
conformance monitoring--see section XIII of this preamble.
3. Alternatives Considered
    FAA considered requiring the use of strategic deconfliction and 
conformance monitoring for all UAS operations but settled on proposing 
that strategic deconfliction would only be required when operating a UA 
in controlled airspace or over a population density of Category 3 or 
higher and that conformance monitoring would only be required when 
operating a UA in controlled airspace. In making this determination, 
FAA considered comments received in response to a May 2023 Federal 
Register notice regarding UAS BVLOS operations (BVLOS FRN) \70\ that 
included FAA-funded simulation research into the effectiveness of 
strategic deconfliction at reducing collision risk between UAS and 
insights gained from the UTM Key Site Operational Evaluation.
---------------------------------------------------------------------------

    \70\ 88 FR 33855 (May 3, 2023).
---------------------------------------------------------------------------

    In the BVLOS FRN, FAA asked the public about requiring UAS BVLOS 
operations to use services providing strategic deconfliction and 
conformance monitoring in any airspace. Many of the comments argued 
that such a requirement was not proportionate to the underlying risk of 
collision between UA in sparsely populated areas. Commenters argued 
that the likelihood of collision between UA in such areas would be 
lower because fewer UA are likely to be operating simultaneously and in 
proximity to each other. Commenters also argued that, in the event of a 
collision, it would be unlikely that falling debris would cause 
property damage or injuries to people on the ground in sparsely 
populated locations. Commenters also emphasized that, because 
conformance monitoring relies on a real-time network connection to send 
alerts, the function may not be implementable in remote parts of the 
United States with poor cellular connectivity, especially if 
alternative C2 link options were not available. FAA agrees with the 
commenters, and therefore has proposed requiring strategic 
deconfliction only in controlled airspace, or when flying over a 
population density of Category 3 or higher, and conformance monitoring 
only in controlled airspace.
    FAA also considered the approach recommended by the BVLOS ARC, 
which was to not require strategic deconfliction or conformance 
monitoring, but rather to allow their use via a service if an operator 
chose to do so. However, FAA has determined that, without a requirement 
for all operators in certain environments to perform strategic 
deconfliction, there would be only a marginal safety benefit. As 
discussed earlier, strategic deconfliction is most effective when all 
UAS in a given area are participating in the function.
    FAA also considered permitting operators to find their own way to 
manage collision risk with other UAS. This would provide operators with 
a variety of solutions, which might include manual coordination with 
other operators; use of emergent collision avoidance technology 
predicated on detecting other UAS; or use of an automated data service 
provider certificated under part 146. However, FAA found that while it 
would be desirable to provide maximum flexibility, such an approach 
would have decreasing safety benefits because operators may not be 
aware of each other's operations. Further, there is not yet a 
demonstrated operationally validated solution for tactical collision 
avoidance between UAS.\71\ FAA seeks comments on whether the UAS-to-UAS 
collision risk is appropriate for the nature of proposed operations 
when the operator is using strategic deconfliction or conformance 
monitoring through a part 146 certificated entity.
---------------------------------------------------------------------------

    \71\ The RTCA minimum operational performance standards (MOPS) 
for Airborne Collision Avoidance System X for sUAS (ACAS sXu) 
provide an algorithmic means of alerting and avoiding other drones, 
but require a sufficient means of detecting other drones that has 
not been standardized.
---------------------------------------------------------------------------

J. Operations Near Aircraft: Low Altitude Right-of-Way Rules (Sec.  
108.195)

    FAA's system of right-of-way is based on the foundational principle 
of ``see-and-avoid,'' a concept based on aircraft maneuverability, 
piloting skillset, physical limitations of VLOS, and the conspicuity of 
other aircraft to determine right-of-way. This is the basis of 
Sec. Sec.  91.113 and 91.115, as well as other part 91 requirements 
such as cloud clearances, visibility minimums, aircraft lighting for 
night operations, and other associated design and flight requirements. 
FAA has taken this consistent approach into account in

[[Page 38245]]

developing right-of-way rules for proposed part 108.
    Under FAA's approach to right-of-way, the aircraft with right-of-
way can continue their flight unimpeded, while the other aircraft gives 
way. The proposed changes to the right-of-way structure envisioned 
under part 108 would maintain that principle, updating the existing 
requirements under part 91 to accommodate this new entrant. Under 
proposed Sec.  108.195 and the proposed amendments to Sec.  91.113, UA 
operating under part 108 would be required to yield to all manned 
aircraft broadcasting their position using ADS-B or electronic 
conspicuity equipment, and those operating in specific locations. 
Specifically, manned aircraft operating in a Category 5 population 
density area as described in proposed Sec.  108.185, operating in Class 
B or C airspace as described in proposed Sec.  108.180(b), or departing 
from or arriving at an airport or heliport would have right-of way over 
the UA.
    The BVLOS ARC made several proposals related to right-of-way in 
their final report. These included allowing for ``detect-and-avoid'' (a 
technology-based approach to ``see-and-avoid''), giving UA right-of-way 
in shielded areas, giving UA right-of-way over non-cooperative 
aircraft, and giving cooperative manned aircraft right-of-way over UA. 
``Cooperative'' in this context meaning aircraft broadcasting their 
position using ADS-B Out equipment or electronic conspicuity equipment. 
FAA is proposing to adopt the BVLOS ARC's recommendations related to 
giving UA right-of-way in shielded areas, giving manned aircraft 
broadcasting their position using ADS-B Out equipment or electronic 
conspicuity equipment right-of-way over part 108 UA, and giving part 
108 UA right-of-way over manned aircraft who are not broadcasting. FAA 
has decided not to update Sec.  91.113 based on the BVLOS ARC's 
proposal related to ``detect-and-avoid'' at this time. This change 
would require further updates to part 91, affecting legacy aviation in 
a manner that is out of scope of this rulemaking effort.
    Proposed Sec.  108.195(a) states that UA operating under part 108 
would be required to yield right-of-way to all aircraft departing from 
or arriving at an airport or heliport or equipped and broadcasting 
their position using ADS-B Out equipment that meets the performance 
requirements of Sec.  91.227. FAA acknowledges that ADS-B Out systems 
may occasionally fail to meet the performance requirements of Sec.  
91.227. Therefore, FAA expects DAA standards would include performance 
requirements for the UAS so that the system can avoid aircraft when 
ADS-B Out equipment exhibits performance deficiencies.
    In addition to ADS-B Out equipment that meets Sec.  91.227, FAA 
would allow for an electronic conspicuity device that broadcasts a 
signal on Universal Access Transceiver (UAT)/978 MHz and that would 
also provide a means for the manned aircraft operator to retain their 
right-of-way over the UA. FAA anticipates that equipment that is able 
to broadcast limited ADS-B information, including aircraft location, 
would make manned aircraft electronically conspicuous to UA that are 
already listening for that signal. A portable device would be capable 
of fulfilling this requirement. FAA does not foresee this limited-
information broadcast to fulfill the full requirements of ADS-B 
equipment that must comply with Sec.  91.227. Instead, it would only be 
used to make UA aware of the presence of a manned aircraft that the UA 
must yield to.
    FAA considered mandating ADS-B Out for all operations below 500 
feet for manned aviation operators but decided that was not tenable due 
to the additional cost and burden that would impose. However, FAA plans 
to define new requirements for a portable low-cost electronic 
conspicuity (EC) device that could be used by manned aviation operators 
solely to retain right-of-way over a part 108 UA. This could be in the 
form of a new Technical Standing Order (TSO), or another form of 
approved specification issued by FAA, but FAA invites comment on the 
best way to enable this technology. The specification would allow for 
the device to be battery-powered and easily moved between aircraft, 
which would minimize costs for an owner of multiple aircraft and for a 
pilot of different rental airplanes by only having to purchase one 
device. This EC device could use its own antenna or attach to an 
external antenna and broadcast the aircraft's identification and 
location repeatedly, informing nearby receivers of the location of a 
manned aircraft that would need to be avoided by UAS. This EC device 
would be useable in any manned aircraft, including fixed-wing, 
rotorcraft, balloons, and ultralight vehicles, without expensive 
installations or reliance on onboard electrical systems.
    FAA also considered requiring part 108 UA to monitor and perform 
separation for aircraft that are broadcasting their position over a 
networked connection, such as the internet. This could enable a 
technological solution on the manned aircraft side where the pilot of a 
manned aircraft could use something as simple as an app on their cell 
phone that was low cost, or free to provide right-of-way retention. 
However, research into this as a viable solution has not yet occurred 
and the concept is still too new to incorporate into a rulemaking 
proposal without significant interest. However, FAA notes that the 
section 906 of FAA Reauthorization Act of 2024 requires the Comptroller 
General to conduct a study of technologies and methods that may be used 
by operators of UAS to DAA manned aircraft that may lawfully operate 
below 500 feet AGL and that are not equipped with a transponder or ADS-
B Out equipment or not otherwise electronically conspicuous. This type 
of technology, which might not rely on transponder or ADS-B equipment, 
could potentially be one way of meeting the intent of this study. 
Therefore, FAA seeks comments on whether FAA should consider an added 
equipage requirement in the final rule for UA in the event that such a 
technological solution could be delivered before the rule is 
implemented.
    It is important to note that, per proposed Sec.  108.195(b), FAA 
states that UA would be required to remain at a safe distance from 
aircraft to which the UA would be required to yield the right of way. 
FAA is also proposing an amendment to Sec.  91.113 to reference 
proposed Sec.  108.195 (for more discussion, refer to section 
XII.B.5.ii). The right of way rule would not apply for UA operations in 
shielded areas, as specified in proposed Sec.  108.205. When conducting 
operations in shielded areas, FAA proposes that UA would have the 
right-of-way over all manned aircraft. As noted above and further 
discussed in the following section VI.L, this is motivated by the fact 
that manned aircraft are extremely unlikely to be operating in shielded 
areas. Also discussed previously in section VI.H, the existing 
framework for avoiding collisions has been predicated on conditions 
largely specific to manned aircraft operations. To enable BVLOS 
operations, this proposed rule considers how to fulfill those functions 
in the context of strategic deconfliction, right of way requirements, 
and DAA. Strategic deconfliction requirements, referring to the 
preflight planning that ensures that the routes taken by all UA in a 
given area do not conflict, was discussed in section VI.I, while the 
proposed right of way requirements to increase conspicuity was 
discussed in section VI.J.
    In proposed Sec.  108.195(b), FAA further proposes that operators 
would need to use a method acceptable to the Administrator for 
determining safe

[[Page 38246]]

distance that statistically mitigates the risk of a collision to a 
remote event. FAA anticipates that an acceptable standard would require 
the ability to calculate and verify separation distances with manned 
aircraft in order to determine proximity, have a means to measure the 
performance of the equipment used to determine separation, and ensure 
that the assumptions used in the separation distances are appropriate 
and comparable to the types of operations intended to be conducted. FAA 
also expects that any such safe distance used would place no undue 
tactical burden on other aircraft such that a UA operating BVLOS may 
cause a potential safety hazard for a manned aircraft by trying to 
avoid the UA. The minimum safe distance used would need to be based on 
the balance of the technological capability of the systems and the 
interaction with the manned aircraft.
    The first criteria, calculating and verifying separation, could be 
met by the operator having DAA technology installed on their aircraft 
that meets the design and performance requirements set out in a 
relevant industry consensus standard that has been accepted by FAA 
pursuant to the process described below. At the time of this preamble, 
FAA has reviewed DAA and associated calculation methodologies in 
reports from MIT/LL, the DAA standards proposed by ASTM Committee F38 
on UAS, and RTCA Airborne Collision Avoidance System (ACAS) standards. 
Based on this, FAA anticipates that industry has many means to be able 
to calculate the separation distance of a UA to manned aircraft in 
tactical DAA mitigation strategies. FAA looks to industry and other 
stakeholders to recommend any further industry consensus-based 
standards as a means to be able to show FAA their tactical DAA 
separation calculations.
    The second criteria, to measure the performance of the equipment 
used to determine separation, could be achieved with design and 
development compliance to the RTCA ACAS sXu or other DAA design 
standards for GPS systems for tactical mitigation, as well as 
connectivity to strategic deconfliction networks for strategic 
mitigation. In current part 107 BVLOS waiver operations, operators have 
used both strategic and tactical DAA systems, which generate associated 
performance data for their operation. Strategic DAA has consisted of 
lowering the estimated aircraft encounter rates through preflight 
planning that avoided known traffic areas, pre-launch holds when 
traffic approached the launch area, and early or strategic pre-DAA or 
separation to avoid an encounter and maintain a safe distance. 
Operators have been able to demonstrate meaningful increases in 
separation distances from other aircraft using tactical DAA systems, 
such as radar, cameras, and ADS-B In systems, when compared to what 
would have been the closest point of approach without the DAA or 
separation system detecting and avoiding the other aircraft. FAA 
expects that this same level of performance in part 108 BVLOS 
operations would allow for scalable integration of more expansive 
operations.
    The third criteria, using appropriate assumptions for separation 
distances, could be met by operators utilizing a DAA technology that is 
validated for the operation expected for their aircraft and supported 
by appropriate flight data sets for the intended operations. In the 
process of validating DAA technology, FAA expects that a manufacturer 
of a UA would comply with a DAA industry consensus standard for design 
requirements. The operator could review the operations manual of the UA 
to understand the aircraft's DAA tactical abilities and how the 
aircraft may be used safely within their expected BVLOS operations. FAA 
expects that an industry consensus standard would utilize a 
standardized means of performance validation.

K. Remote Identification of Unmanned Aircraft (Sec.  108.200)

    FAA proposes in Sec.  108.200(a)(1) that, unless otherwise 
authorized by FAA, no person would be able to operate a UA under part 
108 unless the UA meets the requirements for standard remote 
identification. In addition, in proposed Sec.  108.200(a)(2), FAA 
provides that the UA is not required to broadcast the control station 
location as required under Sec.  89.305 (b) and (c) if the unmanned 
aircraft is being operated without a flight coordinator in accordance 
with 108.310. In addition, in Sec.  108.200(a)(3) FAA proposes that the 
UA would be required to broadcast a remote identification operational 
status message that indicates whether the UA is being operated BVLOS, a 
status which indicates that the unmanned aircraft is being operated 
without a flight coordinator in accordance with 108.310, if applicable, 
and the takeoff location of the unmanned aircraft. FAA is also 
proposing that the broadcast range would need to be optimized to enable 
other aircraft to use the remote identification signal for situational 
awareness. FAA also proposes in Sec.  108.200(a)(3) an update to the 
minimum performance requirements for standard remote identification: 
when the UA operational status is set to BVLOS, the performance (range) 
of the broadcast would need to be sufficient to allow the UA to remain 
a safe distance from other aircraft. This proposal is intended to 
enable operators of other aircraft to identify UA that are operating 
BVLOS so the aircraft can remain separated by a safe distance. This may 
require higher performance levels for the equipment used to transmit 
the standard remote ID broadcast from the UA than what is typically 
used for aircraft operating under part 107. FAA seeks feedback from 
members of the general aviation (GA) community as to what would be a 
sufficient distance that the signal would need to be broadcast for GA 
aircraft to have enough time to maneuver.
    FAA proposes in Sec.  108.200(b) that the standard remote 
identification UA used for part 108 operations under this part would be 
required to meet the requirements of an FAA-accepted means of 
compliance for standard remote identification that includes the 
operational status message element described in this section. FAA notes 
that the currently accepted remote identification means of compliance 
(RID-ASTM-F3586-22-NOA-23-01), which is based primarily on ASTM 
standards F3586-22 and F3411-22a, already voluntarily contains 
provisions for up to 16 unique operational status indications. FAA has 
concluded the addition of a BVLOS operational status indication can be 
implemented without a significant impact to existing users of remote 
identification.\72\ FAA does not anticipate this provision will 
introduce any additional difficulty for manufacturers when producing UA 
equipped with remote identification for airworthiness acceptance under 
part 108. FAA also does not currently intend to impose any additional 
broadcast requirements on aircraft operated outside of part 108 as part 
of this rulemaking, so aircraft currently operating that are compliant 
with standard remote identification using the only currently accepted 
remote identification means of compliance, using a broadcast module, or 
operating under an FAA-Recognized Identification Areas (FRIA) would not 
be impacted. But FAA welcomes comments on whether other operating 
rules, such as part 107, should also be updated to include a broadcast 
operational status message requirement.
---------------------------------------------------------------------------

    \72\ See 87 FR 49520, 88 FR 77895.
---------------------------------------------------------------------------

    For the airworthiness acceptance of remote identification systems 
installed on UA operated under part 108, FAA is

[[Page 38247]]

proposing a new Sec.  89.511 for production requirements for UA 
produced under an airworthiness acceptance issued under part 108. 
Currently, production of standard remote identification UA is under 
either Sec.  89.510 for UA produced under a design approval or 
production approval issued under part 21 or Sec.  89.515 for UA without 
design approval or production approval issued under part 21. FAA is 
proposing a new Sec.  89.511 for UA produced under an airworthiness 
acceptance issued under part 108. This new section would require the 
remote identification system installed on UA operating BVLOS under part 
108 to meet the airworthiness acceptance requirements under part 108 
rather than the requirements in Sec.  89.515, which are intended for UA 
produced without any airworthiness requirements, such as those operated 
under part 107 or 49 U.S.C. 44809. The proposed amendment to Sec.  
89.511 also requires conforming amendments to Sec. Sec.  89.505 and 
89.515. As such, FAA is proposing amendments to Sec. Sec.  89.505 and 
89.511.

L. Operation in Shielded Areas (Sec.  108.205)

    As discussed in section VI.J, FAA has proposed allowing part 108 UA 
to have right-of-way while conducting operations in shielded areas. In 
Sec.  108.205, FAA proposes defining shielded areas as areas within 50 
feet of certain infrastructure, to include power lines and substations, 
railroads, bridges, and pipelines, when permission from the facility or 
infrastructure owner is obtained. In addition, FAA is reserving the 
right to designate any other area as shielded, as appropriate. It is 
important to note that proposed Sec.  108.205 would prohibit UA being 
operated in shielded areas where manned aircraft are expected to 
operate.
    The proposed use of both infrastructure and protected facilities to 
create shielded airspace for UAS is intended to enable a broad range of 
BVLOS UAS operations. Manned aviation must follow the altitude and 
obstacle requirements of Sec.  91.119, and only in certain instances 
can manned aircraft intentionally come closer to infrastructure and 
terrain features than 500 feet. This creates an opportunity for UAS, 
which can operate closer to obstacles and structures without having the 
increased risk that would result from manned aircraft attempting to 
conduct the same operations. Part 108 UA are expected to mostly be 
smaller than manned aircraft and would therefore be able to navigate 
more nimbly. This, combined with the lack of humans on board the UA, 
reduces the risk in shielded operations when compared to manned 
aircraft.
    Traditionally, close-up inspection by manned aircraft (fixed-wing 
or helicopter) has been the method used by electrical transmission and 
pipeline utilities to inspect and maintain these lines. By allowing the 
use of UAS to perform these types of operations, FAA anticipates that 
the risks associated with these operations would be reduced. But in 
determining if the UA operation should be considered shielded, FAA must 
consider the remote possibility of a helicopter air ambulance, 
helicopter, manned agricultural aircraft, or another type of manned 
aircraft operating close to infrastructure and in the same area as the 
UA. FAA has concluded that requiring permission from the infrastructure 
owner for an operation to be considered shielded would be the best way 
to deconflict these types of activities, since they would be in the 
best position to know what types of operations are being conducted. 
However, it should be emphasized that this in no way provides an 
infrastructure owner the ability to control the airspace over their 
infrastructure and any non-shielded operations can still occur without 
said permission. Furthermore, it should be noted that this is in 
addition to the requirements proposed in Sec.  108.180 for gaining 
access to controlled airspace, if required.
    With this, FAA finds that the requirement of a 50-foot limit from 
structures is consistent with the risk accepted based on prior waivers 
granted and recommendations made from industry. This 50-foot limit 
would support numerous operations, including building, bridge, and 
other infrastructure inspection. A 50-foot limit also strikes a balance 
between allowing an adequate distance away from infrastructure for the 
safety of the UA and general camera and imaging equipment capabilities, 
while also providing an appropriate safety margin from other potential 
manned aircraft operations. In addition, powerline inspection can 
benefit from the 50-foot limit due to electrical and magnetic field 
metrics that require minimum UA standoff distances when operating 
within the vicinity of powerlines. Manned operations should be 
operating far enough away from powerlines that a 50-foot limit should 
provide enough of a separation distance from the UA operating under 
part 108 and manned aviation operations in the vicinity of the UA 
operation. In time, the definition of a shielded area may expand beyond 
what has been defined for linear infrastructure. To support the 
flexible application of shielded operations, FAA proposes to permit 
additional shielded operations through an authorization under Sec.  
108.205.
    Operations that propose an operating area within 50 feet of certain 
infrastructure that do not have permission of the facility or 
infrastructure owner, do not qualify to fly under the designation of 
shielded operations. This is to limit operations that may leverage the 
removal of DAA compliance and strategic deconfliction to be able to 
conduct operations in areas where the risk of the operation of the 
aircraft is mitigated based on location, speed, and closeness of the UA 
to the infrastructure being inspected. The 50-foot offset granted under 
shielded operations under this rule is meant to provide enough distance 
for a UA to conduct operations without impeding on other operations in 
the vicinity of the infrastructure being inspected.
    While FAA has defined the specific infrastructure sites of 
powerlines and substations, railroads, bridges, and pipelines as the 
qualifying infrastructure, FAA recognizes there are additional 
structures that could be included in this definition and requests 
comments on the list.

M. Operations of Multiple Unmanned Aircraft (Sec.  108.210)

    The technological ability for one individual person to manipulate 
multiple aircraft simultaneously is unique to the UAS environment. FAA 
recognizes that broader applicability of controlling or monitoring 
multiple UA per person, or groups of persons, is an important 
consideration in scaling UAS operations to greater commercial and 
societal benefit, while also recognizing that this scenario presents 
greater complication to the operational environment. To ensure there is 
no safety gap as a result of these differences, FAA has proposed Sec.  
108.210 to provide allowance for the operation of multiple UA. Proposed 
Sec.  108.210(a) states that operators would only be able to conduct 
operations at a UA to flight coordinator ratio of 1:1, except in 
accordance with a method acceptable to the Administrator. FAA expects 
that industry consensus standards would be developed, and later 
accepted by FAA, which would meet this industry need. FAA would also 
evaluate proposals from operators related to operating multiple UA on a 
case-by-case basis. Such an evaluation is already occurring with 
current UAS operations, including those with package delivery operators 
and agricultural UAS operators, as part of FAA's review of exemption 
petitions

[[Page 38248]]

and waivers. Factors that FAA considers when making such determinations 
currently include the technology used and the operational procedures in 
place. FAA anticipates using similar factors when making case-by-case 
decisions under part 108. Proposed Sec.  108.210(b) states that flight 
coordinators would not be allowed to be responsible for operations of 
more UA than what the flight coordinator is reasonably capable of 
handling during normal, abnormal, and emergency conditions, determined 
in a method acceptable to FAA. How to determine the number of UA a 
flight coordinator is capable of handling would be addressed in any 
consensus standard that may be developed, or FAA would determine this 
number at the time of evaluation. Proposed Sec.  108.210(c) states that 
flight coordinators would not be allowed to be responsible for 
operations of more UA than specified in the manufacturer's operating 
instructions, which highlights that there may be a difference between 
the ratio identified in the manufacturer's operating instructions and 
the ratio at which an operation can be conducted by an operator. The 
ratio identified in the manufacturer's operating instructions would 
consider the ability of the technology and system capability, but it 
would not be able to fully account for the specific operating 
conditions, individual company procedures, and human factors for any 
given operator. In addition to the parameters set by the operating 
instructions, the operator may consider human factors, weather 
conditions, the category of operating over people, the strategic 
deconfliction and DAA technologies utilized by the operator, and other 
relevant information when developing a method acceptable to the 
Administrator. Being responsible for a UA would include, but would not 
be limited to, operating or monitoring the UA.
    Furthermore, this proposal will only outline the allowed 1:1 
operations under part 108, but it will not list an allowable ratio of 
flight coordinators to a specific number of part 108 UA for any given 
operation. FAA expects there to be a great deal of variety among part 
108 UA designs. As such, the manufacturer of these multiple UA systems 
would be in the best position to design the maximum number of aircraft 
to be operated at one time by a single flight coordinator under optimal 
conditions. Conversely, FAA understands that operators may not hold 
optimal training commensurate with the expected operation or plan to 
operate in fully optimal conditions. Therefore, the ratio of aircraft 
to flight coordinator would be determined based on the UA design 
characteristics and FAA's review of the operation. FAA recognizes that 
there is significant interest in the industry in being able to operate 
1:many at scale to facilitate further UAS integration. However, at this 
time there is limited industry standardization, and the variances of 
aircraft design and operational considerations are too great to be able 
to codify a singular set of parameters to enable 1:many operations. FAA 
invites public comment on how 1:many operations could be safely 
standardized and expanded in the regulations beyond 1:1.
    Current 1:many operations have mostly consisted of package delivery 
operations under parts 107 and 135. In addition, ``swarm'' operations 
have been granted waivers under Sec.  107.35 for drone light shows and 
other entertainment purposes. In many operational use-cases, there may 
be opportunities to use 1:many operations for the benefit of 
agriculture, surveillance, infrastructure inspection, and many other 
operations, as described by the BVLOS ARC in March 2022 (for more 
information on the BVLOS ARC, see section III.C0).\73\
---------------------------------------------------------------------------

    \73\ Unmanned Aircraft Systems Beyond Visual Line of Sight 
Aviation Rulemaking Committee Final Report, (Mar. 10, 2022), 
available at www.faa.gov/regulations_policies/rulemaking/committees/documents/media/UAS_BVLOS_ARC_FINAL_REPORT_03102022.pdf.
---------------------------------------------------------------------------

N. Careless and Reckless Operation (Sec.  108.125)

    Existing FAA regulations such as Sec.  91.13 prohibit a person from 
operating an aircraft in a careless or reckless manner that may 
endanger the life or property of another. These regulations also 
prohibit any object being dropped from an aircraft in flight if doing 
so would create a hazard to persons or property.
    FAA proposes Sec.  108.125(a) to ensure that UAS would not be 
operated under part 108 in a careless or reckless manner. Proposed 
Sec.  108.125(b) would also prohibit allowing an object to be dropped 
from a UA in a manner that would create an undue hazard to persons or 
property. In Sec.  108.125(c), FAA proposes that part 108 UA would not 
be able to be operated in such a way that creates a collision hazard 
with property of another, vehicles, persons, structures, other UA, or 
aircraft with one or more people on board. As the primary mission of 
FAA is the safety of the NAS and the public, operation of a UA in a 
manner that could cause damage to property or injury to persons would 
be unequivocally prohibited, whether the cause is intent, lack of skill 
or training, faulty equipment, or recklessness. This is consistent with 
other FAA regulations and is critical to ensuring a safe NAS. FAA notes 
that, for purposes of research and development, UA are sometimes 
intentionally collided into structures and objects, but that 
intentional testing is not considered to be ``careless and reckless'' 
if done with appropriate safety mitigations and intent and does not 
injure people nor damage another person's property.

O. Manuals (Sec. Sec.  108.130 and 108.135)

    In Sec.  108.130(a), FAA is proposing that operators would need to 
ensure that certain documents are available and readily accessible 
during relevant operations. These documents would include the 
manufacturer's provided UAS operating instructions (as described in 
proposed Sec.  108.720), the manufacturer's provided UAS maintenance 
instructions (also described in proposed Sec.  108.720), the 
manufacturer's provided UAS configuration and control document (also 
described in proposed Sec.  108.720), and the company operations 
manual, as proposed in Sec.  108.135. These documents would provide the 
operator's personnel with the UA's operational procedures and 
limitations, emergency and abnormal procedures, operations policies, 
methods and procedures for maintenance, accepted configurations, and 
general company policies. These documents would be necessary for the 
safe operation of the UA and for safety of overall operations.
    In addition, FAA proposes in Sec.  108.130(b) that the operator 
would need to ensure that all personnel have access to the documents 
that pertain to their duties and responsibilities during the 
performance of their duties. Depending on the duties required, some 
manuals could be quite extensive. Requiring personnel to have access to 
pertinent documents would allow personnel to immediately reference 
relevant information during operations, rather than commit an entire 
manual to memory. In addition, emergency, abnormal, or procedures that 
are used infrequently should be verified by manual reference so as not 
to omit any important step or process.
    In Sec.  108.135(a), FAA proposes that each operator would be 
required to prepare and keep current a manual setting forth the 
operator's procedures and policies acceptable to FAA, which would be 
essential to standardize processes and ensure uniformity in tasks 
performed during operations. A company operations manual aids personnel 
in following established

[[Page 38249]]

processes and procedures consistently. This consistency facilitates 
improved efficiency and reduces errors. A company operations manual 
would also be an essential resource for new personnel. It would provide 
a structured overview of operations, policies, and regulatory 
requirements that need to be followed.
    In Sec.  108.135(b), FAA proposes that the company operations 
manual may be in the form of one or more documents if the appropriate 
portions of the manual, as well as changes and additions, are always 
made available and accessible to the operator's personnel when such 
personnel are performing their assigned duties. Operators should have 
the flexibility to decide which manuals or sections of manuals would be 
issued to personnel depending on their duties. This would enable the 
operator to take smaller sections from large manuals and provide their 
personnel information related to their specific work functions, rather 
than information not relevant to their tasks. To ensure that all 
operations are conducted consistently with what is written, personnel 
should have a reliable and updated manual to enable him or her to 
perform his or her mission properly. Having access to applicable 
documents would also help to improve safety by reducing the risk of 
incidents through appropriate procedures or work instructions.
    Under proposed Sec.  108.135(c), FAA would require the manual be 
made available to FAA upon request. As part of FAA oversight, 
surveillance, and continued operational safety (COS), operators would 
need to make the manual available for review to ensure the manual meets 
the requirements of the proposed rule and is not contrary to any 
applicable Federal regulations, the operator's operating certificate or 
permit, or operations authorizations, as would be required under 
proposed Sec.  108.135(d). This would also provide FAA with an 
opportunity to verify the operation complies with its manual.
    In addition, FAA proposes in Sec.  108.135(e) that information and 
instructions contained in the manual must be displayed clearly and be 
retrievable in the English language. For ease of obtaining information 
during time-critical moments such as emergencies, manuals would need to 
be printed in a clearly legible format or in electronic format that 
displays in a way that is clearly visible in all lighting situations. 
In maintaining the universal language standard in aviation, FAA 
proposes that the manual should be retrievable in the English language.
    FAA proposes in Sec.  108.135(f) that the manual revision status 
would need to be controlled in such a way a person can immediately 
ascertain the information is the most current. Personnel should be able 
to ensure that all documentation related to operations, processes, and 
policy is accurate, up-to-date, and compliant with relevant 
regulations. While FAA is not proposing a requirement for a specific 
revision format, one way to meet the revision requirement would be to 
have a document revision history template that includes the current 
date, the name of the person who made the changes in the revision 
history template and a description of what changes were made in each 
revision. A list of effective pages could also be included for easy 
reference to manual holders to verify that the manual is up to the 
current revision.
    Under proposed Sec.  108.135(g), FAA would require that company 
manuals must include certain items and procedures in order to 
standardize important aspects of an operation. First, FAA proposes in 
Sec.  108.135(g)(1) that a company manual would need to include the 
name of the personnel required by Sec.  108.135 who are authorized to 
act for the operator, their assigned area of responsibility, and their 
duties, responsibilities, and authority. By requiring these personnel 
to be spelled out in the manual, other persons working for the company 
would be better able to understand the operational control and 
structure of the company as it directly relates to responsibility of 
the operation. In addition, FAA proposes in Sec.  108.135(g)(2) that 
the manual contain a list of operations personnel positions required 
and the responsibilities of each role. By making this a requirement, 
employees would have a means to understand their roles and 
responsibilities as they relate to the operation. FAA also proposes in 
Sec.  108.135(g)(3) requiring the company operations manual to include 
preflight procedures, in order to ensure that all personnel conduct the 
same process.
    FAA recognizes that not all UA are alike. Loading of a UA may be 
done differently from aircraft to aircraft. Some UA may have external 
pods, some UA may have a means to attach loads to the exterior of the 
UA, and some may have an internal bay used to store payloads. Given 
that not every UA is loaded in the same manner, FAA proposes in Sec.  
108.135(g)(4) that the manual would need to contain procedures for 
ensuring aircraft weight and balance has been accounted for.
    As further described in section VI of this preamble, FAA proposes 
in Sec.  108.135(g)(5) that operators would need to have procedures in 
their manual on how to notify FAA after an accident has occurred. 
Because this rule is flexible in how an operator divides the duties and 
responsibilities for operations personnel, this proposal would not 
require that the flight coordinator be the individual making 
notification in the event of an accident, but rather allows the 
operator to determine which individual would make that notification. 
FAA therefore proposes that the company manual would need to include 
company procedures for complying with accident notification 
requirements.
    FAA proposes in Sec.  108.135(g)(6) that the company manual would 
need to include procedures for ensuring the appropriate operations 
personnel know the current condition of the UA in order to determine 
the airworthiness status of the UA. FAA anticipates this could be 
accomplished in a number of ways, such as the use of a logbook or 
through the use of electronic messaging or automation. As discussed in 
sections VI.A and VI.E, preflight and determination of condition of 
safe flight is paramount for ensuring safety of the operation. 
Therefore, this proposal would require operators to include procedures 
to determine the airworthiness status of the UA prior to flight and to 
communicate that status to appropriate personnel.
    FAA proposes in Sec.  108.135(g)(7) that operators would need to 
have procedures for complying with the recordkeeping and report 
requirements as required by proposed Sec. Sec.  108.40 and 108.45. In 
proposed Sec. Sec.  108.40 and 108.45, FAA would require that specific 
records be retained by the operator and that the operator would need to 
make necessary reports of certain records to FAA. FAA understands that 
not all operators would utilize the same recordkeeping or reporting 
databases. FAA anticipates that some operators may store records 
electronically, while others may store them in hard copy form. In 
addition, because operator records play a significant role in showing 
regulatory compliance to FAA, efficient and effective recordkeeping and 
reporting by an operator would help to ensure that compliance is 
continuously maintained. FAA therefore would require that operators 
develop and publish those procedures within the company operations 
manual.
    FAA proposes in Sec.  108.135(g)(8) that the manual would include 
procedures for access to and use of UA maintenance procedures and 
inspection criteria. FAA recognizes that not all operators would 
utilize the same methods of dispersing these procedures to applicable 
personnel. For example, one operator

[[Page 38250]]

may choose to provide procedures in hard copy format while another may 
choose to provide the procedures via electronic form. In order to 
ensure that the applicable personnel receive and follow current 
maintenance and inspection procedures, FAA proposes that operators 
would need to include a procedure in the company operations manual for 
their access and use.
    FAA proposes in Sec.  108.135(g)(9) that the manual would also need 
to contain procedures for developing and implementing emergency 
procedures. The company manual should include information that the 
operations personnel need to develop and implement procedures for what 
to do in the case of various emergencies.
    FAA proposes in Sec.  108.135(g)(10) that a company operations 
manual includes procedures for the retrieval of aircraft that fail to 
return to their intended landing location. By making this requirement, 
FAA can ensure that operators are constantly aware of the location of 
each UA and how to retrieve a UA that does not return to its intended 
landing location.
    FAA proposes in Sec.  108.135(g)(11) that the manual also contain 
aircraft loading procedures, as applicable. FAA considers the proper 
loading of a UA to be critical to safe operation as operations are 
expected to be conducted over people and roads. Objects dropped from a 
UA could pose a serious hazard. Similarly, improperly secured or 
distributed loads may result in a loss of control of the UA and also 
result in a hazard. Including loading procedures in the manual ensures 
all operations personnel have access to this critical information.
    Finally, FAA would require in Sec.  108.135(g)(12) that operators 
include procedures for the identification and disposition of hazardous 
materials in their company operations manual, including procedures 
designed to avoid potential injury to employees and persons and 
property. FAA also believes that proper identification of hazardous 
materials in an operator's system can help to prevent such materials 
from being improperly offered to (shipped on) traditional carriers. 
Therefore, FAA proposes Sec.  108.135(g)(12) to ensure that UAS 
operators are aware of the hazardous materials in their operation 
including hazardous materials that may be installed in the UA. For 
example, a large lithium battery that powers the UA should be 
identified to ensure that employees are aware that there are hazardous 
materials present within their operation.

P. Emergency Conditions (Sec.  108.215)

    FAA proposes under Sec.  108.215(a) that an operator would be able 
to request deviation authority from any FAA authorizations or 
limitations during emergency conditions if the conditions necessitate 
operations for the protection of life or property and a deviation is 
necessary for the expeditious conduct of those operations. This is 
intended to be for humanitarian needs where there is time to ask for 
authorization, but not time to perform the necessary administrative 
paperwork that would be needed to allow the operation through standard 
procedures. If conditions arise requiring emergency operations--for 
example, search and rescue missions or missions supporting first 
responders' operations--FAA could authorize operators to deviate from 
existing FAA authorizations or limitations in support of that emergency 
operation. Ensuring public and aviation safety is FAA's primary 
mission, and allowing deviations in the interest of safety would align 
with FAA's mission.
    In addition, FAA proposes in Sec.  108.215(b) that an operator may 
deviate from any rule under part 108, to the extent required, if the 
deviation necessitates immediate action to meet an in-flight emergency. 
The provision of a deviation authority in emergency situations is akin 
to a similar requirement for traditional aviation, Sec. Sec.  91.3(b) 
and (c). Unforeseen circumstances can occur during operations and may 
require the operator to act immediately and deviate from FAA 
regulations in order to address the safety concern. If such a situation 
arises in which an operator needs to deviate from the proposed 
regulations, the operator may do so in the interest of public and 
aviation safety.
    Nonetheless, as proposed in Sec. Sec.  108.45 and 108.215(c), 
operators who deviate from FAA requirements during emergency conditions 
would be required to send a written report of that deviation to FAA 
upon FAA's request. Operators would be required to submit documentation 
describing the deviation and the nature of the emergency to FAA upon 
request. This would ensure that FAA stays informed of the incidents 
that could affect safety in the NAS and would allow FAA to determine if 
the deviation was warranted.

Q. Unmanned Aircraft Flight Restriction (Sec.  108.220)

    FAA proposes in Sec.  108.220 that no person would be allowed to 
operate a UA within a UA flight restriction established in accordance 
with part 74 of this chapter, except as prescribed in part 74. This 
would align part 108 with a concurrent rulemaking titled Designation--
Restrict the Operation of an Unmanned Aircraft in Close Proximity to a 
Fixed Site Facility, which is proposing these flight restrictions. FAA 
anticipates that the NPRM for part 74, while separate, will be issued 
at, or near, the same time as this preamble and proposes these changes 
to remain consistent with that proposal. If the NPRM for part 74 
receives comments that lead to changes that affect this requirement, 
appropriate changes will be made to this section as well.

VII. Personnel Requirements (Subpart C)

A. Approach to Personnel in Part 108

1. Tailoring Personnel Requirements to Part 108 Operations
    FAA issues airman certificates to accommodate the varied personnel 
roles within manned aviation, to include pilots, air traffic 
controllers, and other roles. 49 U.S.C. 44703. The regulations that 
stem from this authority were developed and envisioned for manned 
aviation, and, in 2018, Congress recognized that traditional airman 
certification may not provide the necessary flexibility for UAS 
operations. Therefore, Congress granted the Administrator authority to 
determine if airman certificates are necessary for the safe operation 
of UAS. 49 U.S.C. 44807(b)(2). FAA is proposing to exercise this 
discretionary authority by not requiring airman certificates under part 
108 operations. As subsequently discussed in more detail, FAA has 
determined that the UAS proposed for use under part 108 and the related 
operations would be varied in ways that make a centralized airman 
certification impracticable (e.g., the varied UAS and operations could 
not be subject to a singular, regulated training program).
    FAA has determined that it would not require the certification of 
airmen to operate a UA under this proposed regulation, instead pivoting 
to a model predicated on corporate responsibility for the safety of the 
entire operation. FAA is proposing a personnel structure that better 
reflects the types of aircraft and operations being currently conducted 
with UAS, along with expectations about how UAS operations may continue 
to evolve. Under this proposed rule, an operator would have an 
operations supervisor, who serves in a supervisory role with strategic 
oversight of and responsibility for the operation, while the flight 
coordinator role, if necessitated by aircraft design, would be 
responsible for the tactical safety of the operation. This proposed

[[Page 38251]]

structure reflects the technological capabilities and interfaces of UAS 
that are expected to conduct operations under part 108, which are both 
managed and operated within the airspace in significantly different 
ways to manned aircraft and UAS operated under part 107. Many UAS are 
heavily automated and may soon be fully autonomous, and do not require 
constant pilot interaction as manned aircraft do.
    Pursuant to 49 U.S.C. 44807(b)(2),\74\ FAA has determined that an 
airman certificate should not be required for the relevant personnel 
conducting operations under the provisions of part 108. This rulemaking 
proposes to shift responsibility for some aspects of the safe operation 
of UAS under proposed part 108 from humans to systems and from 
individuals to organizations. In this proposed structure, the operator 
would be responsible for ensuring the safety of the operation. Among 
other things, the operator would be responsible for maintenance and 
alterations, ground handling, loading and unloading of aircraft, and 
emergency procedures and protocols, even though individuals may 
accomplish those tasks. While individuals would remain accountable for 
their actions, the operator would ultimately be responsible for the 
conduct of their operations personnel. In considering this issue, FAA 
examined the safety and economic implications of not requiring an 
airman certificate. This proposal would promulgate a framework to 
ensure that personnel possess the appropriate knowledge, skills, and 
training to conduct the BVLOS operations covered in this proposal 
safely. Therefore, as discussed below, FAA proposes personnel 
requirements tailored to the UAS that would provide adequate safety for 
BVLOS operations under part 108.
---------------------------------------------------------------------------

    \74\ In pertinent part, 49 U.S.C. 44807(b)(2) charges the 
Administrator with determining whether a certificate under Sec.  
44703 is required for the operation of UAS identified under Sec.  
44807(b)(1). Sec.  44703 promulgates the authority for the issuance 
of airman certificates.
---------------------------------------------------------------------------

    In manned aircraft, the pilot in command is the primary person 
responsible for operational control and safety of flight from the 
flightdeck.\75\ They are responsible for tasks, including performing 
preflight inspections of the aircraft, controlling the aircraft, seeing 
and avoiding other aircraft, and complying with instructions from ATC, 
in addition to numerous other tasks built specifically around pilot 
control. However, the increasingly autonomous nature of UAS anticipated 
for use under this proposal provide alternate pathways to meet the 
purposes of those regulatory requirements currently applicable to 
pilots.
---------------------------------------------------------------------------

    \75\ See pilot in command as defined in 14 CFR 1.1, stating, in 
pertinent part, that the PIC is the person who has final authority 
and responsibility for the operation and safety of the flight.
---------------------------------------------------------------------------

    In addition, this proposal accommodates the industry's increasing 
reliance on technology rather than human interaction, including the 
fact that UAS use systems of monitored automation and control. For 
example, the design standards of subpart H propose requirements for 
position, navigation, and timing and UAS must be designed to avoid 
aircraft in accordance with proposed Sec.  108.195.\76\ These 
functions, when done in a traditional aircraft, are completed manually 
by a pilot. Under part 108, these functions, and many of the proposed 
operating requirements, would be predicated on technology and systems 
of programming rather than human interaction. An operator under this 
proposed rule would be responsible for managing the required systems 
associated with the UA and the operation that will replace traditional 
airmen roles in aviation. This responsibility would extend to all 
operations, overseeing personnel, training, maintenance, ground 
handling, administrative functions, and maintaining a secure facility 
and operations areas.
---------------------------------------------------------------------------

    \76\ See proposed Sec. Sec.  108.820 and 108.825, see generally 
section XI of this preamble.
---------------------------------------------------------------------------

    Among other things, FAA considered the lack of standardization in 
the industry, which means that operations using one type of UA are 
likely to be very different from those conducted with a UA from another 
manufacturer, both in the context of distinct handling characteristics 
of the UA and the operations to be performed. For example, the 
proficiencies required of an agricultural operation will be different 
from the proficiencies required of a package delivery operation. FAA 
found that developing a common set of knowledge and skills that could 
be tested for the variety of UA was impracticable and likely would not 
be adequate to ensure safe operations. Rather than create a new airman 
certificate for part 108 operations, which would necessitate developing 
standards for qualification, training and proficiency, FAA proposes to 
require operators to assume the responsibility to ensure personnel have 
the appropriate knowledge, training, and skills necessary to oversee 
and manage the technology and systems required for automated UAS BVLOS 
operations.
    FAA surveyed its experience with modifying airman certification 
requirements during the exemption process for UAS BVLOS operations. FAA 
has regularly employed the discretionary authority of 49 U.S.C. 44701 
to modify airman certification requirements to allow operators to 
conduct UAS BVLOS operations through exemptions.\77\ Some of these 
operators have argued to FAA that certification does not add any value 
or benefit to operations, due to added administrative burden and costs 
associated with certification relative to the knowledge and skills that 
have little relevance to the operation of a UAS. Similarly, operators 
that were held to a part 107 remote pilot certificate have explained 
that they still needed to provide the specific knowledge necessary to 
conduct safe operations because the part 107 knowledge test only covers 
basic concepts. While the ARC did contemplate the establishment of a 
new remote pilot certificate, it did point out that UAS provide lower 
cost ways for people to access the NAS than crewed aircraft, lowering 
barriers to entry for individuals and companies of a wider income 
strata to take advantage of this access. According to the ARC, at the 
highest level, the costs associated with training and becoming a 
certificated remote pilot are far less than becoming a part 61 
certificated pilot, providing individuals a more affordable path into 
aviation. This has a further positive impact on science, technology, 
engineering, and mathematics (STEM), employment, and technology 
transfer.\78\
---------------------------------------------------------------------------

    \77\ See section III.B of this preamble for additional 
discussion on BVLOS exemption history.
    \78\ See BVLOS ARC Report, page 270.
---------------------------------------------------------------------------

    As discussed further in section VII.A, the proposed rule's approach 
provides operators with flexibility to assign personnel to the most 
appropriate roles and responsibilities for the safety and efficiency of 
their specific operations. The proposed rule addresses personnel 
through organizational responsibility and operational requirements. 
Specifically, this proposal contains performance-based and scalable 
personnel regulations that cover various potential roles, including 
management positions, flight coordinators, ground handling personnel, 
package handling, maintenance personnel, aircraft programmers, 
information technology staff, and other site-specific personnel 
depending on the complexity of the operation. Because FAA anticipates 
the UA operating under part 108 will be varied, the proposed rule would 
also require operators to tailor personnel training and qualification 
to the specific

[[Page 38252]]

UA and its operating environment. The UAS industry has pursued a 
variety of configurations and systems, both to support the specific 
design of their UAS and in pursuit of proprietary technological 
solutions. For example, current UAS designs exhibit diverse user 
interfaces, from programs that function on mass-produced tablets or 
cellphones, with others in a closed-loop system with control stations 
and software specific to the design. There are currently no common 
interface standards developed by industry, and as such FAA finds that 
this training and qualification process will reflect the current varied 
direction undertaken by industry.
    The variety of anticipated UA also extends to the UA's AE. 
Accordingly, given the varying AE needed to comply with proposed part 
108, FAA anticipates that companies may employ software, hardware, or 
information technology personnel, as well as communications and 
satellite experts. For example, as discussed in section XIII, part 108 
operations could include complex interactions with third-party service 
providers integral to safe BVLOS operations, and specialized personnel 
may be required to handle these system-level requirements. Depending on 
the operation type, the operator could also be responsible for multiple 
aircraft operating at the same time, and therefore personnel may need 
to be trained and qualified on the technological systems that enable 
simultaneous flights.
    This proposed rule would promulgate a framework involving permitted 
operations and certificated operations. Permitted operations would be 
restricted to smaller aircraft and possess limited operating privileges 
with less direct FAA oversight, while operators conducting more complex 
certificated operations would enter a closer structured oversight 
relationship with FAA. When operators conduct BVLOS operations 
consistent with proposed part 108 requirements, including proposed 
personnel regulations, FAA anticipates that both permitted and 
certificated operations could be safely conducted without an airman 
certificate.
    FAA acknowledges that this proposal departs from the existing 
airman regulations for manned aircraft operations and from FAA's 
approach to small UAS operations under part 107. Through part 107, FAA 
created a new small-UAS-specific airman certificate called a remote 
pilot certificate with a small UAS rating. In doing so, FAA recognized 
and addressed the shared characteristics of operating a small UAS under 
a remote pilot's command. However, there are fundamental differences 
between the existing part 107 and proposed part 108. Under part 107, 
most of the operators are hobbyist, recreational, and individual flyers 
who are less likely to know and understand the necessary regulations 
(e.g., airspace designations, operations over people) without a testing 
requirement to do so. Therefore, it is important to verify that part 
107 operators understand these important restrictions. Thus, the 
prerequisite for a part 107 Remote Pilot Certificate is a knowledge 
test focusing on regulations and basic aviation knowledge and does not 
include a skills test like traditional manned pilot certificates under 
part 61. Moreover, because the part 107 regulations restrict all 
operations to visual line of sight, with specific conditions for 
operating over people and at night, operations are fairly limited in 
what they can achieve unless the operator holds a waiver or exemption. 
As a result, part 107 operations are primarily designed for individuals 
(i.e., the remote pilot). Accordingly, FAA's approach to mitigating 
risks of part 107 operations is focused on the remote pilot's knowledge 
of the regulations, and less on the remote pilot's overall skills and 
reliability of the specific UA.
    Despite their size, small UA operated under part 107 are much like 
traditional aircraft in that they rely heavily on user input and hand 
flying. These circumstances are dissimilar to the heavier, diverse, and 
more autonomous UAS that are reliant on technology and programming to a 
greater degree as envisioned under part 108. To account for these 
differences, this proposal would reassign most functions performed by 
pilots in traditional, manned aircraft, and similar or analogous 
functions performed by remote pilots under part 107 to technology and 
autonomous systems. As noted above, part 108 would require UAS to be 
designed to avoid most other aircraft (Sec.  108.825). Similarly, this 
proposal would require UAS to have a simplified user interaction (Sec.  
108.810), which is anticipated to greatly reduce the level of human 
interaction and, therefore, limit potential user errors to ensure safe 
flight.
2. Operator Responsibility for Personnel
    Given the shift from human controlled UA to systems-controlled UA 
intended to be operated under this rulemaking, FAA proposes to shift 
certain operating responsibilities from individuals to organizations. 
This proposed ``corporate responsibility model'' requires operators to 
satisfy the regulatory requirements for safe operation, which include 
ensuring that the personnel they employ meet the requirements in 
subpart C of part 108. FAA contends that holding operators primarily 
responsible for the safety of their operations would better address how 
part 108 operations are expected to occur and the associated risks, 
which are driven less by individual reactive decision-making and more 
by management of technology and systems, policies, personnel, security, 
and other matters that operators must develop and oversee to meet this 
proposal's requirements.
    Rather than prematurely define the appropriate roles and 
responsibility structures for emerging technologies and operations, the 
proposal would establish performance-based regulations that ensure part 
108 operators meet or exceed management, knowledge, and training, 
standards for all personnel. These regulations would accommodate the 
position that the operator would be best positioned to conduct all 
knowledge and skills training and ensure employee qualification because 
they would understand the intricacies of their operations as it applies 
to their specific UA and the corresponding personnel requirements. 
Similarly, the proposal recognizes that the operator would be best 
situated to tailor knowledge, qualifications, and training regimes to 
the type of UA and AE being used, as well as the operational procedures 
in place. Thus, FAA has determined that the operator should be 
responsible for holistically managing its operations personnel, 
providing adequate training to ensure appropriate proficiency. 
Consistent with this approach, FAA would expect an operator company to 
take appropriate corrective measures to address issues with an 
individual's performance issues if and when they arise. While FAA would 
retain the authority to take enforcement actions against an individual 
where a regulatory violation occurs by assessing a civil penalty, FAA 
expects the operator to proactively address potential issues as the 
authority within the corporate responsibility framework. If FAA finds 
that an operator company is not managing its workforce effectively, 
placing the operation or the public at an unsafe level of risk, FAA 
could take appropriate enforcement against the operator up to and 
including revocation of their operating permit or certificate.
    As noted above, it is anticipated that BVLOS operations under 
proposed part 108 would likely involve more people than part 107 
operations and have different configurations and roles of

[[Page 38253]]

personnel than manned operations. These BVLOS operation roles could 
include a variety of positions, including management, flight 
coordinators, ground handling personnel, package handling personnel, 
maintenance personnel, aircraft programmers, information technology 
staff, and other site-specific personnel depending on the complexity of 
the operation. FAA considered certificating each type of personnel 
involved in the control of a UA under part 108 operations but concluded 
that operator certification was sufficient given the risk profile and 
standard operations observed for the types of operation conducted under 
proposed part 108. Further, FAA is not in a position at this time to 
reasonably anticipate the array of business models and personnel 
preferences given the variety of operations that would be facilitated 
under this rule.
    Moreover, each individual person would likely have a diminished 
role when compared to airman analogues in manned aviation. As explained 
above, FAA anticipates part 108 operations to be mostly to fully 
autonomous, with many functions previously performed by manned aircraft 
pilots built into the technology and systems. While in manned aircraft, 
the use of autopilot systems and self-governing technology is becoming 
more commonplace, the ultimate control and responsibility for the 
safety of flight rests solely on the pilot. The pilot can always take 
direct control and maneuver the aircraft as desired or needed, and the 
pilot cannot rely on anyone outside of the aircraft to intercede 
control. With respect to controlling a UA during operations, an 
operator could utilize multiple personnel and combine their efforts to 
carry out successful and safe flight. For example, an operator could 
use personnel designated just for UA preflight preparation and checks, 
while other personnel perform the tracking and monitoring of the UA in 
flight (see section VI.B). Similarly, an operator may have payload 
operators with specialized training on loading packages onto specific 
UA. Some personnel could be removed from the proximity of the flight 
operations, and even switched during flight without degrading safety. 
These positions could vary depending on the type of operation and the 
UA and would generally require only narrow insight into the operation 
as a whole. FAA contends that these varying roles and responsibilities, 
which could significantly change from operator to operator, are not 
amenable to a certificate process that would yield few benefits beyond 
the safety mitigations proposed in these personnel regulations and the 
other requirements of part 108. Instead, the proposed rule would 
require operators to satisfy the performance standards described herein 
to develop and use qualified personnel with the knowledge, training, 
and skills to conduct operations safely.

B. Personnel Roles and Responsibilities

    While this proposed framework acknowledges a variety of roles could 
be necessary to meet the operational requirements proposed in this 
rule, this proposed rule explicitly regulates two roles: the operations 
supervisor and flight coordinator. The general personnel categories and 
requirements intend to extend flexibility to operators, given the 
variability in possible business purposes and operations. Operators 
would be required to develop procedures and policies that would clearly 
state the roles and responsibilities necessary for the planned 
operations in their company operations manual \79\ as part of the 
application process for both permitted and certificated operations. 
Upon submission of the application, which will include the manual, FAA 
would evaluate the operations personnel framework, which would be 
required to be included by proposed Sec. Sec.  108.135(g)(1) and (2), 
necessary for safe operation. FAA would consider how the framework 
outlined in the company operations manual meets requirements for the 
roles and responsibilities specific to the operation, as proposed in 
Sec.  108.300(b). For certificated operators, FAA would also consider 
the training program, as proposed in Sec.  108.540, which would also be 
included in the certificated operator's application, as proposed in 
Sec.  108.505(b).
---------------------------------------------------------------------------

    \79\ Proposed Sec.  108.135 would require each operator to 
prepare and keep current a company operations manual that sets forth 
the operator's procedures and policies acceptable to the 
Administrator. See also Sec. Sec.  108.405 and 108.505.
---------------------------------------------------------------------------

1. Operations Supervisor (Sec.  108.305)
    As proposed in Sec.  108.305(a), FAA would require each operator to 
have at least one operations supervisor. The operations supervisor 
would be directly responsible for, and be the final authority as to, 
the operation of all UA (see proposed Sec.  108.120(d)). FAA proposes 
that the operations supervisor would maintain individual responsibility 
for operations in the company to ensure regulatory compliance. This 
position would also be a point of contact for FAA. FAA expects that 
this role would be similar to a director of operations in manned 
aviation, with the responsibility of ensuring that persons in the 
company comply with the regulations and any authorizations or 
limitations associated with an operating permit or certificate.
    In this proposal, FAA contends that persons occupying this position 
would need expansive knowledge of aviation safety standards and safe 
operating practices, as well as those policies and procedures specific 
to the operator and the operations. Therefore, the proposed rule 
accounts for specific areas of expertise necessary for the operations 
supervisor. In proposed Sec.  108.305(a), FAA proposes to require that 
the person serving in the role of an operations supervisor be qualified 
through training, experience, or other expertise (e.g., UAS military 
experience, academic background). As further discussed in section 
VII.C, FAA has proposed training requirements that would apply to all 
personnel, including the operations supervisor. FAA anticipates that 
each company will tailor the training to fit their particular 
operational profile, which would include the specific procedures as 
detailed in their application for operating permit (proposed Sec.  
108.405(b)) or operating certificate (proposed Sec.  108.505(b)).
    In proposed Sec.  108.305(b), FAA proposes that the operator would 
be required to inform FAA of any change in personnel assigned as 
operations supervisor within 10 days of any such change. Because FAA 
anticipates that the operations supervisor will be a primary point of 
contact in many cases between the operator and FAA, having this 
information available in an expeditious fashion is necessary for 
maintaining appropriate oversight of the operator.
    To ensure operation supervisors possess the requisite level of 
specialized knowledge to successfully carry out their duties, FAA 
proposes Sec.  108.305(c). In proposed Sec.  108.305(c)(1), the 
operations supervisor would be required to be knowledgeable of the 
company policies and procedures. Because FAA is approaching the 
requirements of personnel from a perspective of corporate 
responsibility, FAA finds it necessary for the operations supervisor to 
be able to represent the company with full knowledge of the company's 
policies and procedures to facilitate safe and regulatorily compliance 
operations.
    In proposed Sec.  108.305(c)(2), FAA proposes that the operations 
supervisor must have a full understanding of aviation safety standards 
and safe operating practices, the practices for maintaining a secure 
facility and operations, and the regulatory

[[Page 38254]]

requirements of part 108. FAA would expect the operations supervisor to 
understand the high-level information necessary to maintain the safety 
of the operation, similar in manner to a Director of Operations under 
14 CFR parts 121 and 135. FAA envisions this role would be tailored to 
the operational parameters of the company. For example, some 
organizations may require the operations supervisor to maintain 
significant and direct interaction with operations; others may task the 
operations supervisor with overseeing a multi-state operational 
environment, provided there are sufficient safeguards to ensure the 
operations supervisor is directly responsible for, and the final 
authority as to, the safe and secure operation of all UA.\80\ In 
addition, some companies may choose to employ multiple people in the 
operations supervisor role, depending on company needs and the scale of 
the operation.
---------------------------------------------------------------------------

    \80\ See proposed Sec.  108.120(d).
---------------------------------------------------------------------------

2. Flight Coordinator (Sec.  108.310)
    The second personnel position that would be regulated (if required 
by aircraft design in the manufacturer's operating instructions for UA 
operation) is that of a flight coordinator. Section 108.310 proposes 
the requirements for flight coordinators. As explained in section XI.C, 
UA operating under this proposal would exhibit highly automated 
features and functions. Direct manual control (e.g., handheld joystick 
controllers) would not be permitted,\81\ and any user interaction would 
be mediated by an automated control system that enables flight 
coordinators to execute simple commands, such as changes in airspeed, 
altitude, and heading. This is in contrast to operations under part 107 
where the safety case largely relies on the actions of an individual 
(the remote pilot in command) who is primarily responsible for the 
safety of the operation \82\ and no requirement for automation exists. 
Accordingly, FAA chose the term ``flight coordinator'' rather than 
``pilot'' to avoid confusion and to reinforce that the flight 
coordinator would not share the exact same roles and responsibilities 
traditionally given to pilots (both manned aviation pilots and part 107 
remote pilots).
---------------------------------------------------------------------------

    \81\ See proposed Sec.  108.810(a).
    \82\ See 14 CFR 107.19.
---------------------------------------------------------------------------

    In addition, this proposed rule acknowledges that a person directly 
controlling or monitoring a UA in flight may not be necessary unlike 
other circumstances where pilots are required for operations (e.g., a 
pilot inputting manual operations in an airplane, or a remote pilot 
manually moving a joystick in small UAS operations). The proposal would 
accommodate fully automated flight, and thus, in accordance with the 
manufacturer's operating instructions, the flight coordinator role may 
not require consistent action. However, for this to be the case, a UA 
design would have to be fully automated and be able to handle both 
normal operations and emergency situations autonomously. For UA that 
are not fully autonomous, the flight coordinator would provide direct 
oversight and monitoring of UAS flights but may not be actively 
controlling the flight. In those circumstances, the flight coordinator 
would instead be responsible for overseeing the technology and systems 
that ensure safe operation of autonomous flight.
    Proposed Sec.  108.310(a) would require the operator to designate a 
flight coordinator prior to each flight where a flight coordinator is 
required by the manufacturer's operating instructions. FAA proposes in 
Sec.  108.310(b) that no operator may allow a person to direct the 
flight of a UAS unless they are appropriately qualified and authorized 
by the operator as a flight coordinator. As further discussed in the 
following section VII.C, FAA anticipates that operators will develop 
training requirements appropriately tailored to the personnel 
requirements consistent with the requirements in Sec.  108.315 that 
best fit the needs of the company and its operational profile. The 
operator would thus be responsible for ensuring that the flight 
coordinator understands the appropriate procedures to conduct the 
operation. While the operator must assign a flight coordinator prior to 
each flight, FAA recognizes there may be a situation where the flight 
coordinator must handoff control to another flight coordinator (e.g., 
an emergency medical situation). Therefore, proposed Sec.  108.310(c) 
would require the operator to maintain appropriate handoff procedures 
if necessary to transfer control from one flight coordinator to another 
while the flight is in operation.
    As previously discussed in section VI.A.1 of this preamble, FAA 
notes that though the UAS envisioned for use under part 108 are highly 
automated, the flight coordinator would be required to take appropriate 
actions, within the limitations of the UAS design, to prevent the UA 
from posing an undue hazard to other people, aircraft, or property, as 
proposed in Sec.  108.310(d)(1). Proposed Sec.  108.310(d)(2) would 
further require the flight coordinator to maintain situational 
awareness of the UA and to otherwise direct the UA if necessary to 
comply with the requirements of part 108, again within the limitations 
of the UAS design. If the flight coordinator is overseeing more than 
one flight, subject to operating requirements and approval, they must 
have the skills and training needed to conduct 1:many operations.
    FAA also notes, however, that the anticipated highly automated UA 
may include varying systems, controls, and operational characteristics. 
To ensure safety, flight coordinators must have experience with the 
specific make and model of UA that will be used during operations, 
which would provide familiarity with the UA's distinct features (e.g., 
flight dynamics, responsiveness under different conditions, and control 
input procedures). Because acquired knowledge of a UA's specific 
features is prone to decay over time, this actual experience must be 
recently acquired and maintained to ensure appropriate familiarity with 
the UA. However, FAA has determined that this experience need not be 
extensive, considering the automation requirements and simplified user 
controls that would be required in proposed subpart H. For these 
reasons, in proposed Sec. Sec.  108.310(e), (f), and (g), FAA proposes 
certain competency and recency requirements. Specifically, FAA proposes 
a minimum of 5 hours of initial supervised flight experience in the 
specific make and model of UA in Sec.  108.310(e) and recency within 12 
calendar months under Sec.  108.310(f) in order to qualify to serve as 
a flight coordinator. This 5-hour requirement mirrors the 5 hours of 
experience required of a flight engineer under 14 CFR 63.37. FAA 
recognizes that the duties of a UAS flight coordinator are not 
completely synonymous with those of a manned flight engineer, but notes 
that the basic principles of flight responsibility are similar: (e.g., 
monitoring critical aircraft systems, understanding/coordinating 
emergency procedures) such that a mirrored 5 hours is an appropriate 
time of flight experience. FAA seeks comment on whether the 5-hour 
experience requirement is sufficient for UA operations under part 108.
    FAA proposes that this operating experience would be directly 
supervised by persons who have the foundational level of knowledge 
about the operation and the UA to intervene in an emergency situation 
or correct a possible erroneous action by the person seeking to be a 
qualified flight coordinator.\83\ FAA finds these persons

[[Page 38255]]

to be a fully qualified flight coordinator, an operations supervisor, 
or a person qualified and designated by the operator to ensure 
operations personnel are appropriately trained (e.g., a person 
providing training program). FAA notes that this operating experience 
would not be required to be to be conducted in an actual operation; in 
other words, the person may count 5 hours of operational experience in 
a training scenario to the five hours. This would be how a certificate 
holder would stand up an initial cadre of flight coordinators upon the 
inception of an operator; because Sec.  108.310(a) would require a 
fully qualified flight coordinator where it is required by the 
manufacturer, the person would need to obtain their supervised 
operating experience prior to initiating actual operations to be fully 
qualified. This would be conducted through the training/preparation 
before actual operations begin. Because permit holders \84\ would not 
be required to have a training program, the operations supervisor would 
supervise the initial cadre of flight coordinators. In either 
certificated or permitted operations, should a fully qualified flight 
coordinator be the designated supervisor, the flight coordinator could 
obtain their operating experience in actual operations with the fully 
qualified flight coordinator as the designated flight coordinator for 
that operation.
---------------------------------------------------------------------------

    \83\ FAA notes that ``direct supervision'' must provide the 
ability to conduct these actions when necessary and may include 
unobstructed visual sight of the flight coordinator's actions, 
active communication, etc.
    \84\ Under proposed Sec.  108.475(k), recreational permit 
operators would not be required to comply with the experience 
requirements set forth in proposed Sec.  108.310. Therefore, the 
supervised operating experience 5-hour requirement would not apply 
and is not contemplated in this section.
---------------------------------------------------------------------------

    Table 1 illustrates who could directly supervise the operating 
experience in both the initial cadre (i.e., no flight coordinators 
exist for that operator yet) and during the regular course of business 
(i.e., the operator has a flight coordinator but is qualifying 
additional ones).

                     Table 1--Supervisory Personnel
------------------------------------------------------------------------
                                     Certificated          Permitted
                                   operators: direct   operators: direct
                                  supervision may be  supervision may be
                                     conducted by:       conducted by:
------------------------------------------------------------------------
Initial Cadre of Flight           1. Operations       1. Operations
 Coordinator(s).                   supervisor.         Supervisor.
                                  2. Person
                                   designated by
                                   operator to
                                   ensure personnel
                                   are trained.
Flight Coordinators Established   1. Fully Qualified  1. Fully Qualified
 in the Regular Course of          Flight              Flight
 Business.                         Coordinator.        Coordinator.
                                  2. Operations       2. Operations
                                   Supervisor.         Supervisor.
                                  3. Person
                                   designated by
                                   operator to
                                   ensure personnel
                                   are trained.
------------------------------------------------------------------------

    After the flight coordinator is initially qualified, the person 
must maintain proficiency by serving as a flight coordinator for at 
least 5 hours of operating experience of a UA of the same make and 
model in the previous 12 calendar months. In the event of a lapse in 
recency, FAA proposes in Sec.  108.310(g) that the flight coordinator 
must requalify in order to serve in their role as the flight 
coordinator. FAA expects these experience requirements and intervals 
would be reasonable and provide sufficient familiarity with the UAS to 
ensure the safe oversight of the operation.
3. Other Roles
    FAA places responsibility on the operator to identify all needed 
personnel to meet the requisite safety standards given the operations 
this proposal seeks to facilitate. FAA anticipates that operations 
personnel categories under this part would include, but would not be 
limited to, seven general categories of personnel roles. The breadth of 
possible operational needs may require individuals outside of the roles 
listed below. Those roles would be specific to the operation and 
required for safe operation, but they would not necessarily fit any of 
the following categories. FAA identified these categories based on data 
and information gathered from waivers and exemptions the agency has 
granted to date. FAA acknowledges it cannot foresee every specific role 
that may be required by future operations. As a result, FAA invites 
comments on these seven personnel categories and seeks feedback on the 
types of personnel that may be necessary for BVLOS operations. FAA 
discussed two categories previously, the operations supervisor and 
flight coordinator, and the remaining categories include (but are not 
limited to) those described in table 2:

                                  Table 2--Personnel Roles and Responsibilities
----------------------------------------------------------------------------------------------------------------
            Personnel role                  Responsibility                   Proposed regulation(s)
----------------------------------------------------------------------------------------------------------------
Operations Supervisor................  Directly responsible     Sec.   108.300(a)(1), Sec.   108.305
                                        for and final
                                        authority as to the
                                        operation of all UA..
Flight Coordinator...................  Direct and monitor the   Sec.   108.300(a)(2), Sec.   108.310
                                        UA, and, if necessary,
                                        intervene during UA
                                        flight to ensure safe
                                        operations.
UA Maintenance or Alterations........  Determine the            Sec.   108.300((a)(3)
                                        performance of the UA,
                                        determine whether the
                                        UA is in a condition
                                        for safe operation,
                                        and perform
                                        maintenance and
                                        repairs on the UA.
Ground Handling......................  Retrieve UA from         Sec.   108.300(a)(4)
                                        storage, set UA up for
                                        operations, power on
                                        the UA, perform
                                        physical handling of
                                        the UA and
                                        corresponding
                                        equipment.
Loading and Unloading of the UA......  Act as payload           Sec.   108.300(a)(5)
                                        operators or package
                                        operators, conduct UA
                                        loading and unloading
                                        activities, maintain
                                        knowledge pertaining
                                        to carriage of
                                        hazardous materials.
Servicing or Upkeep of Systems         Maintaining and          Sec.   108.300(a)(6)
 (including AE).                        repairing systems such
                                        as ground control
                                        stations, interface
                                        equipment, fleet
                                        management system, C2
                                        links, and any
                                        components necessary
                                        for operation but not
                                        part of the UA.

[[Page 38256]]

 
Establishing Flight Paths, Emergency   Understand automation    Sec.   108.300(a)(7)
 Procedures, and Operational            of UA, input system
 Parameters.                            parameters, set up
                                        operations software,
                                        programming of system
                                        elements (while not in-
                                        flight).
----------------------------------------------------------------------------------------------------------------

    While this proposed rule would allow operators to tailor personnel 
design to fit the needs of their operations, including by consolidating 
roles in individual employees when appropriate, this flexibility cannot 
come at the expense of safety. Accordingly, in proposed Sec.  
108.300(b), FAA proposes that an operator may not allow a person to 
perform multiple roles concurrently if doing so could affect the safety 
of operations.

C. Personnel Knowledge and Training (Sec.  108.315)

    FAA proposes to require operations personnel to have general and 
aircraft-specific aviation knowledge and skills as it relates to their 
respective roles. The permit and certificate holders would be 
responsible for appropriately training their personnel. However, 
because FAA anticipates that operators will build their workforce in a 
variety of configurations to support their diverse operations, FAA does 
not propose to require all training for every person involved in the 
operation. Instead, this proposed rule would allow operators the 
flexibility to tailor training for appropriate personnel (as determined 
by the manufacturer's instructions and the operator's policies and 
procedures) to ensure they have the aviation and aircraft-specific 
knowledge and skills necessary for safe operations, and, more 
specifically, to use the specific aircraft and to support other 
operation elements. Certificate holders, as further described in 
section VIII.C, would be required to develop and implement a training 
program in accordance with proposed Sec.  108.540, and to include the 
training program in their application for the certificate, as proposed 
in Sec.  108.505(b)(10). FAA does not propose to require that permit 
holders would need to submit a training program for FAA approval, 
noting that the expected smaller scope of permitted operations and 
fewer number of personnel would naturally result in a less complex 
structure and does not necessitate that more formalized approach.
1. General Aviation Knowledge and Training
    Proposed Sec.  108.315 would set forth the general personnel 
knowledge and training requirements. First, in Sec.  108.315(a), FAA 
proposes that each operator would be required to ensure that all 
operations personnel have completed the applicable training under part 
108 and that the operations personnel have the knowledge and skills 
required to conduct their duties specific to their areas of 
responsibility. While FAA would mandate the inclusion of certain 
subject matter areas dependent on the personnel role, there would be no 
prescriptive hours or manner of training requirements. In addition, if 
there are changes to the UAS utilized or to an operator's operational 
procedures, FAA expects that updated training would be administered 
accordingly. To note, FAA would not be responsible for providing such 
training required under proposed Sec.  108.315; rather, the specific 
operator would provide the training tailored to their operations and 
required personnel or ensure they have received appropriate training. 
Specifically, if the operator uses an outside source or contractor, the 
operator is still responsible for ensuring the course content meets the 
need.
    As mentioned, FAA would require general knowledge and skills 
training relevant to their areas of responsibility covering certain 
subject matter areas proposed inSec.  108.315(b). Specifically, FAA 
finds 19 subject matter areas warranting inclusion in the training 
program where the personnel would directly deal with matters within 
that subject area in their role. However, an operator would be 
responsible for ensuring personnel have applicable knowledge and skill 
required to conduct their duties safely, therefore, an operator is free 
to include all subject matter areas in a training program for all 
personnel, even when a subject area may not pertain to a specific role 
(i.e., the regulation sets a training curriculum floor, but an operator 
may choose to include subject areas beyond that). The following 
preamble text discusses the significance of each subject matter area 
requirement. Because the regulation would apply the subject area as 
applicable to the personnel's area of responsibility, FAA also provides 
discussion for each subject area on the personnel roles expected to 
receive the subject area training.
    In proposed Sec.  108.315(b)(1), operations personnel would be 
required to receive general knowledge and skills training on the 
applicable regulations relating to flight operations, such as UA speed, 
altitude limitations, and equipment requirements associated with 
operations over people and in controlled airspace. As discussed in 
section VI, the proposed rule would establish general operating rules 
governing all operations envisioned under part 108 (e.g., areas of 
operations, preflight requirements and emergency conditions, aircraft 
lighting, aircraft registration). To ensure that personnel, first, 
understand what those regulations would require and, second, do not 
violate them through ignorance, FAA proposes that all operations 
personnel would have general knowledge and skills training related to 
part 108's general operating rules.
    In proposed Sec.  108.315(b)(2), FAA proposes that operations 
personnel would receive general knowledge and skills training on how to 
determine the classification of specific airspace and what the 
requirements are for operating in that airspace. Through training, 
personnel would become knowledgeable on flight restrictions affecting 
UA operations. Training would also include how to determine which areas 
are prohibited or restricted. This subject area would be applicable to 
any personnel involved in flight planning, specifically including the 
operations supervisor and the flight coordinator.
    In proposed Sec.  108.315(b)(3), FAA proposes that operations 
personnel would receive general knowledge and skills training on the 
effects of weather on UA performance and aviation weather sources. 
Knowledge of weather is necessary for safe operation of a UA. For 
example, space around buildings, smokestacks, and trees, which is safe 
during clear weather, could easily become hazardous in a windy 
situation. Accordingly, personnel should understand the effect that 
different types of weather have on the performance of their specific UA 
and how to react to that weather. Personnel must be trained in how to 
utilize the manufacturer's flight manual to reference the weather 
conditions specific UA may or may not withstand. Lastly, FAA proposes 
that personnel also be trained on their knowledge of official sources 
that they can use to

[[Page 38257]]

obtain weather information and predictions in order to plan the 
operation of the UAS. Training in this subject area would be applicable 
to any personnel involved in flight planning, specifically including 
the operations supervisor and the flight coordinator.
    In proposed Sec.  108.315(b)(4), FAA proposes that operations 
personnel would receive general knowledge and skills training on crew 
resource management. As discussed previously, FAA anticipates the BVLOS 
operations under proposed part 108 to increase in shared responsibility 
and in the number of personnel involved, as compared to typical part 
107 operations. Therefore, UAS operations personnel must understand how 
to function in a team environment, known as crew resource management, 
because operations allowed by this proposed rule would typically 
involve a diverse team of personnel. At a minimum, the operations 
supervisor would need knowledge and skills associated with crew 
resource management to effectively oversee operations and comply with 
the management responsibilities outlined in Sec.  108.305 however most 
operations personnel would likely benefit from this training. Because 
of the separation between the flight coordinator, ground control 
stations, ground personnel and possibly other personnel, communication 
across a team environment is critical to the success of each UA flight.
    In proposed Sec.  108.315(b)(5), FAA proposes that operations 
personnel would receive general knowledge and skills training on the 
operator's communications procedures. Operational communication 
procedures training emphasizes clear and concise communication, both 
internally between operations personnel and externally with 
stakeholders (e.g., law enforcement, FAA and NTSB representatives, and 
other airspace users). The ability to effectively exchange information 
during routine and unexpected situations is crucial, as most operations 
rely on various personnel performing different tasks such as package 
loading or maintenance work. To ensure the status of these specific 
tasks during an operation is communicated effectively, FAA contends 
that operators would need to train most personnel on company 
communication procedures.
    In proposed Sec.  108.315(b)(6), FAA proposes that operations 
personnel would receive general knowledge and skills training on the 
operator's safe distance criteria. This is important because the means 
of maintaining a safe distance may vary from one operation to another. 
FAA also anticipates that any DAA systems used may not specifically 
measure system performance in the same manner. As such FAA expects that 
each operator will tailor their personnel training to the specific DAA 
technology that they use. Operations supervisors and flight 
coordinators would need to be trained on safe distance criteria, as 
would any operations personnel responsible for ensuring that the AE and 
other systems are functioning within the specified parameters of the 
technology (e.g., programming or technical experts).
    In proposed Sec.  108.315(b)(7), FAA proposes that operations 
personnel would receive general knowledge and skills training on the 
principles of strategic deconfliction and conformance monitoring. 
ProposedSec.  108.190 sets forth the requirements for the use of 
strategic deconfliction and conformance monitoring, which is a system 
designed to manage UA traffic to integrate and separate UA in the NAS, 
allowing for more complex BVLOS operations. Flight coordinators and 
operations supervisors must be informed on the requirements for the use 
of strategic deconfliction and conformance monitoring, specifically to 
understand system limitations and that it is not a replacement for 
flight coordinator responsibility to take actions to avoid other 
aircraft.
    In proposed Sec.  108.315(b)(8), FAA proposes that operations 
personnel would receive general knowledge and skills training on 
determining the performance of UA. This would include training on the 
weight and balance of the UA to determine impacts on performance. A 
UA's design limitations are meant to keep it within safe operating 
parameters, and if a UA is loaded such that the maximum takeoff weight 
is exceeded, or the balance of the UA is not within those design 
limitations, then a catastrophic failure could result. To operate 
safely, flight coordinators, package loaders, and potentially other 
personnel, such as personnel involved in the decision on what products 
to offer for delivery, would require knowledge and understanding of 
fundamental aircraft performance issues, which should include (but is 
not limited to) load balancing and weight distribution, determining 
maximum takeoff and landing weights, and understanding available power 
for the operation with computations based on current atmospheric 
conditions.
    In proposed Sec.  108.315(b)(9), FAA proposes that operations 
personnel would receive general knowledge and skills training on the 
physiological effects of drugs and alcohol. Many prescription and over-
the-counter medications, as well as alcohol, can significantly reduce 
an individual's cognitive ability to process and orient situational 
awareness and initiate corrective action when necessary. Accordingly, 
all operations personnel need to understand how drugs and alcohol can 
impact their ability to perform their duties safely.
    In proposed Sec.  108.315(b)(10), FAA proposes that operations 
personnel would receive general knowledge and skills training on 
aeronautical decision-making and judgment. Even though this proposal 
would limit the flight of UA to operations at or below 400 feet AGL, 
manned aircraft will still operate in the same airspace as UA such as 
(e.g., takeoff and landing, low altitude operations, emergency 
situations). In addition to contending with manned aircraft, operations 
personnel may encounter unexpected weather, UA system failures, 
inflight route changes and other unplanned situations. Accordingly, the 
flight coordinator and the programming and technical experts would need 
to understand the aeronautical decision-making and judgment processes 
so that they can anticipate, plan, and manage any seen and unforeseen 
circumstances.
    In proposed Sec.  108.315(b)(11), FAA proposes that operations 
personnel would receive general knowledge and skills training on 
airport and heliport operations. These operations are a critical and 
complex piece of the NAS. Within the bounds of an area designated as an 
airport or heliport, there are typically higher volumes of manned air 
traffic conducting departure and arrival operations (e.g., takeoff and 
landing), which creates a higher workload environment. Having an 
understanding through knowledge and skills training regarding these 
operations would greatly reduce any unnecessary increases in complexity 
and workload increases to both the UA and manned aircraft operations. 
This training would seek to ensure that UA flight operations personnel 
(i.e., those personnel whose roles involve the airborne parts of the UA 
operation) are fully aware of how manned aircraft conduct operations 
within the bounds of an airport and be able to identify any airborne 
hazards while reducing potential conflicts.
    In proposed Sec.  108.315(b)(12), FAA proposes that operations 
personnel would receive general knowledge and skills training on 
operation at night to ensure familiarity with the risks and appropriate 
mitigations for nighttime operations. Night operations occur in low 
visibility without natural light, which can make it harder for pilots 
of manned aircraft to identify other aircraft

[[Page 38258]]

or UA. FAA contends that training on this proposal's UA mitigations for 
night operations, such as aircraft lighting and usage, and other areas 
like physiological factors and aircraft and airport lighting, would be 
vital to ensure safe operation during the night. Accordingly, FAA 
expects that operators conducting night operations would provide the 
appropriate knowledge and skill training for personnel with roles in 
those operations to ensure safety and to reduce the risk to other 
aircraft in the NAS.
    In proposed Sec.  108.315(b)(13), FAA proposes that operations 
personnel would receive general knowledge and skills training on the 
assignment and transfer of control of a UAS. Seamless handoff 
procedures are crucial for safe UAS operation. Clear communication 
during these transitions ensures all personnel share a complete 
understanding of the UAS's status and any potential issues, preventing 
confusion and loss of situational awareness. This is especially 
critical in emergencies, where a smooth and practiced transfer of 
control to the appropriate personnel is essential to maintain safe 
operation and avoid potential harm to people or property. This subject 
area would be applicable to any personnel involved in flight planning, 
specifically the operations supervisor and the flight coordinator.
    In proposed Sec.  108.315(b)(14), FAA proposes that operations 
personnel would receive general knowledge and skills training in BVLOS 
strategic and tactical risk mitigation strategies and approaches. 
Strategic risk mitigation is typically associated with planning that 
occurs before the flight occurs, such as holding flights from taking 
off if there are manned aircraft operations in the near vicinity. 
Tactical risk mitigation is generally associated with technologies that 
are employed during flight, such as DAA equipment and sensors. This 
training would apply to both general principles and items specific to 
their operation. Having an overall understanding through knowledge and 
skill training of BVLOS risk mitigation strategies and approaches would 
help an operator and its personnel ensure positive control of the UA at 
all times. Operations supervisors and flight coordinators would need to 
be trained on strategic and tactical risk, as would any operations 
personnel responsible for ensuring that the AE and other systems are 
functioning within the specified parameters of the technology (e.g., 
programming or technical experts).
    In proposed Sec.  108.315(b)(15), FAA proposes that operations 
personnel would receive general knowledge and skills training on multi-
aircraft operations (where an operator seeks to conduct a part 108 
operation with multiple UAs), contingency management, and recovery 
procedures. Operations supervisors and flight coordinators would need 
training on how to manage and fly multiple drones at once (1-to-many 
operations) and understand the specific systems and rules involved if 
those operations are conducted. To the extent technology improves and 
allows for even larger drone fleets, the training would likely get more 
intricate. For example, pilots delivering packages with many UA would 
need different training than those using UA for inspections.
    In proposed Sec.  108.315(b)(16), FAA proposes that operations 
personnel would receive general knowledge and skills training on the C2 
system of the UAS. Different operations personnel must have a strong 
understanding of the core functions of the C2 system. For flight 
coordinators, this includes how it transmits commands (flight path, 
maneuvers) and receives telemetry data (battery level, signal strength, 
UA health) between the ground control station (GCS) and the UA. Knowing 
the limitations and potential vulnerabilities of the C2 system is also 
important for operations supervisors and technical staff, including 
factors like range (maximum distance for reliable communication), 
interference (potential signal disruptions from other electronics), and 
redundancy (backup systems in case of primary C2 failure).
    In proposed Sec.  108.315(b)(17), FAA proposes that operations 
personnel would receive general knowledge and skills training on 
contingency management and recovery procedures. A risk of UAS 
operations is the possibility that during flight, the operations 
supervisor or flight coordinator may become unable to directly control 
the UA due to a failure of the C2 system that connects the UA and the 
GCS. Training in contingency management and aircraft recovery would 
prepare operations supervisors, flight coordinators, and those 
personnel establishing flight paths, emergency procedures, and 
operational parameters to handle unexpected situations, and promote the 
safe, efficient, and responsible recovery of UA that may have 
experienced landing at an unintended location.
    In Sec.  108.315(b)(18), FAA proposes that operations personnel 
would receive general knowledge and skills training on population 
density considerations. As further discussed in section VI.H, 
operations over people are subject to specific operating requirements. 
In this proposed rule, operators would need to abide by the categories 
determined by calculations derived from the Oak Ridge National 
Laboratory's LandScan data in order to operate over people. 
Understanding these restrictions and considerations is critical for 
operations planning personnel responsible for planning operations and 
flight coordinator personnel.
    In proposed Sec.  108.315(b)(19), operations personnel would 
receive general knowledge and skills training on ATC procedures. In 
order to operate safely near an airport or heliport, operations 
personnel would need to have knowledge of airport operations and air 
traffic control procedures, so that the UA does not interfere with 
either of those operations. In addition, for operators that operate in 
controlled airspace, knowledge of ATC procedures is critical for 
understanding the operating environment and what to expect of manned 
aircraft operations. Finally, knowledge of communication procedures is 
also important so that the operator can understand how to communicate 
with ATC and when it is appropriate. This information is appropriate 
for operations supervisors, flight coordinators, and those personnel 
establishing flight paths, emergency procedures, and operational 
parameters.
    FAA expects that the permit or certificate holder will include 
other aeronautical or operational knowledge and skill areas as they see 
fit. This list is not exhaustive. An operator is responsible for 
ensuring that all of their operations personnel must have the knowledge 
required to operate safely, regardless of whether it is included in the 
previous 19 items.
2. Aircraft-Specific Knowledge and Training
    While Sec.  108.315(b) would require generalized knowledge and 
skill training, as applicable, FAA finds it necessary to require 
knowledge and skill training specific to the make and model of the UA 
to be used in the operation. Therefore, proposed Sec.  108.315(c) would 
require operations personnel to have knowledge and skills training 
specific to the make and model of UA to be operated relevant to their 
areas of responsibility that covers certain subject areas (similar to 
Sec.  108.315(b)). Specifically, FAA finds 12 specific subject matter 
areas warranting inclusion in the training program where the personnel 
would directly deal with matters within that subject area in their 
role.\85\ The following preamble

[[Page 38259]]

discusses the significance of each subject matter area requirement, and 
the personnel roles expected to receive the subject area training.
---------------------------------------------------------------------------

    \85\ Because the operator would be responsible to ensure 
personnel have the applicable knowledge and skill required to 
conduct their duties safely, pursuant to proposed in Sec.  
108.315(a), the operator is free to include all specific subject 
matter areas, or unlisted subject matter areas, for all personnel if 
the operator found it would best equip their personnel with 
operational proficiency.
---------------------------------------------------------------------------

    In Sec.  108.315(c)(1), FAA proposes that the relevant operations 
personnel would receive make-and-model knowledge and skills training on 
the general and operating limitations of the UA used in the operation. 
As noted herein, FAA anticipates that there will be a variety of 
aircraft permissible for use under this proposed rule. Familiarity with 
the specifics of the operator's particular UAS, including any 
limitations that might affect its ability to complete its flight 
safely, is a basic tenet of safe operation. FAA anticipates that the 
operations supervisor and flight coordinator roles would require such 
training, though it may be appropriate to include other personnel 
depending on the specific operations.
    In Sec. Sec.  108.315(c)(2) and (3), FAA proposes that the relevant 
operations personnel would need to receive make-and-model knowledge and 
skills training on the UA's system setup and configuration and normal 
and abnormal procedures. While FAA anticipates that most operations 
would be automated to the extent that personnel need not interfere with 
an operation, certain operations personnel would need to be familiar 
with the normal and abnormal procedures associated with the UA. These 
personnel should be able to discern deviations from standard operating 
procedures, which can help identify any problems or mishaps before they 
become significant. FAA expects that the operator's training materials 
would be specifically tailored to the aircraft used in their operation. 
If significant problems or mishaps do arise, FAA proposes in Sec.  
108.315(c)(4) that the relevant operations personnel would receive 
make-and-model knowledge and skills training on emergency procedures 
specific to the UA used in operation. Such training would provide 
relevant personnel with the knowledge and skills to address those 
abnormal circumstances that require personnel to intervene in UA 
operations (e.g., initiating an immediate landing or return-to-home). 
FAA anticipates that training in these subjects would be appropriate 
for operations personnel that must collaborate to plan and execute 
flight operations, including operations supervisors, flight 
coordinators, and those personnel responsible for servicing or upkeep 
of systems, including AE, and establishing flight paths, emergency 
procedures, and operational parameters.
    To further support the expected use in various commercial 
operations, in proposed Sec. Sec.  108.315(c)(5)-(6), FAA proposes that 
the relevant operations personnel would receive make-and-model 
knowledge and skills training in ground handling and loading, 
respectively. While these subjects are not applicable to all potential 
operations under a permit or certificate, an operator would need to 
ensure that relevant operations personnel are sufficiently trained in 
the particulars of these functions: for example, attaching payload or 
spraying substances. FAA anticipates that personnel responsible for 
ground handling and loading and unloading of the UA would require such 
training, though it may be appropriate to include other personnel 
depending on the specific operations.
    No matter how well an aircraft is designed, if it is not maintained 
properly, it will degrade the reliability of the aircraft and the 
safety of the operation. This includes not only repairing components as 
they become damaged, but regular inspections to verify condition of the 
aircraft and related systems. FAA anticipates that the UA operating 
under part 108 will vary significantly, which would, in turn, 
necessitate succinct knowledge about the maintenance and inspection 
dynamics for the make and model of UA. Therefore, FAA proposes to 
require in Sec.  108.315(c)(7) that the relevant operations personnel 
receive make-and-model knowledge and skills training in maintenance and 
inspection procedures for the operation's UAS. FAA anticipates that 
personnel responsible for UA maintenance or alterations, and for 
servicing or upkeep of systems, including AE, would require such 
training, though it may be appropriate to include other personnel 
depending on the specific operations.
    In Sec.  108.315(c)(8), FAA proposes that the relevant operations 
personnel would need to receive make-and-model knowledge and skills 
training on preflight procedures. These preflight procedures would 
likely include inspecting the UA to ensure it is in safe condition for 
operation and that the AE supporting the operation are in appropriate 
working order (e.g., diagnostics scans show as normal). These more 
programmatic functions would be further supported by the proposed make-
and-model knowledge and skills training on navigation systems, DAA 
procedures, and lost-link procedures, as proposed in Sec. Sec.  
108.315(c)(9), (10), and (11), respectively. FAA contends that such 
training should provide responsible operations personnel with the 
knowledge and skills to use systems that facilitate deconfliction and 
safe distance. Training that emphasizes how to identify, use, and 
troubleshoot, if appropriate under the approval determined by part 146, 
would be an essential component for safe operation. FAA anticipates 
that ground handling personnel and personnel responsible for UA 
maintenance or alterations, and for servicing or upkeep of systems, 
including AE, would require such training, though it may be appropriate 
to include other personnel depending on the specific operations.
    As noted in Sec.  108.210 and discussed in section VI.M, FAA is 
proposing that flight coordinators may only operate UA at a 1:1 ratio, 
though this provision is subject to waiver. However, when an operator 
is authorized to operate at a higher ratio and intends to do so, FAA 
proposes in Sec.  108.315(c)(12) that the relevant operations 
personnel, including operations supervisors and flight coordinators, 
would receive make-and-model knowledge and skills training on the 
operation of multiple aircraft.
3. Currency
    In Sec.  108.315(d), FAA proposes that both general and make-and-
model knowledge and skills training, i.e., the training proposed in 
Sec. Sec.  108.315(b) and (c), would be routinely required for 
operations personnel with relevant responsibilities. Accordingly, to 
comply with these regulations, the operator would have to ensure that 
operations personnel receive the appropriate training at least every 24 
months. Knowledge of rules, regulations, and operating principles 
erodes over time, particularly if the person is not required to recall 
such information on a frequent basis. FAA also notes that even 
personnel who regularly conduct UAS operations may not fully retain 
knowledge or proficiency elements that they may not use during their 
regular operations. For example, a flight coordinator who conducts 
operations only in Class G airspace may not retain the knowledge that 
they need ATC authorization to conduct operations in Class B, C, or D 
airspace. Similarly, if regular operations are never interrupted by 
abnormal circumstances that require operations personnel to use 
emergency procedures, these personnel may not retain the knowledge and 
skills necessary to navigate these critical moments. FAA proposes a 
recurrent training frequency because that have

[[Page 38260]]

been used as the method of ensuring the appropriate retention of 
knowledge and skills for decades. FAA seeks comment on whether a 
different frequency, or another method for ensuring knowledge and skill 
retention would be more appropriate.
    In Sec.  108.315(d), FAA also proposes to provide a structure that 
allows training to be provided up to 1-month before or after the month 
in which it is due without changing the renewal date. This 3-month 
training window would encourage personnel to not wait until the end of 
their training window to avoid the perceived penalty of ``losing'' 
time. The 3-month training window would also allow personnel to 
complete training in the month after it is due without penalty to 
provide flexibility in unforeseen circumstances when the person cannot 
complete the training by the subsequent base month. This is commonly 
referred to as a ``grace period.'' \86\ Note that this would not have 
the effect of changing the next due date as the person will be 
considered to have taken the training during the month it was due 
(i.e., a person's ``base month''). As stated in the proposed 
regulation, the person will be considered to have taken the training in 
the month it was due, so as not to encourage last-minute training or 
extending the training date. For example, if a person originally 
completed their training in January 2026, they would be required to 
receive the recurrent training in January 2028 (and may elect to 
receive training in December 2027). However, due to an unforeseen 
circumstance or emergency, the person could not complete the training 
until February 15, 2028. Upon completing the training on February 15, 
2028, the person's next training month would be January 2030. The 
person could continue to participate in operations during that 15-day 
period. Conversely, if the person did not complete the training until 
March 2028, the person would not be considered qualified from February 
1, 2028, until the training was completed in March (i.e., unable to 
perform the personnel position) and would be in violation of Sec.  
108.315 for those operations conducted after January 2028. Once the 
person completes the training, their new base month would be in March.
---------------------------------------------------------------------------

    \86\ FAA has provided flexibility of a ``grace period'' in this 
manner elsewhere in the regulations: see, e.g., Sec.  135.323.
---------------------------------------------------------------------------

    The subject matter, training, and testing requirements described 
above apply to both permitted operators and certificated operators. 
However, for certificated operations, FAA proposes in Sec.  108.540 
that their training be documented in a program acceptable to FAA. FAA 
expects that the additional services that certification will enable for 
an operator (flight over higher population densities, interstate 
operations, etc.) will add scale and complexity to the operation. 
Therefore, through review and acceptance of the certificated operator's 
training program, FAA seeks to have greater oversight to ensure the 
level, scope, and rigor of the knowledge and training provided.
    Finally, FAA is not requiring operations personnel to demonstrate a 
minimum level of flight proficiency to a specific standard as part of 
the requirements of Sec.  108.315 (e.g., a ``check flight'' or 
practical test). Rather, FAA proposes minimum operating experience and 
recency of flight experience requirements as proposed in Sec.  108.310.
    FAA invites comments on the following:
     The proposed performance-based training and testing of 
personnel under a corporate responsibility model.
     The proposed areas of knowledge in Sec.  108.315, 
including comments addressing whether additional areas of knowledge 
should be trained.
     FAA's proposal to not require a minimum level of flight 
proficiency to a specific standard as part of the requirements of Sec.  
108.315.

D. Medical Condition (Sec.  108.320)

    This proposed rule would not require operations personnel to hold a 
part 67 issued airman medical certificate. However, FAA recognizes the 
possibility that operations personnel may have a medical condition that 
could interfere with the safe operation of the UA or safe execution of 
operations personnel duties. Accordingly, in proposed Sec.  108.320, 
FAA proposes to prohibit a person from serving in an operations 
personnel position if that person knows or has reason to know that they 
have a physical or mental condition that would interfere with the safe 
operation of a UA or make the person unable to perform duties of their 
position. Consistent with the proposed rule's emphasis on operator 
responsibility and control over operations consistent with the 
requirements of this proposal, FAA also proposes in Sec.  108.320 to 
similarly prohibit operators from using a person in an operations 
personnel position if the operator knows or has reason to know that the 
person has a physical or mental condition that would interfere with the 
safe operation of the UA or make the person unable to safely perform 
duties of their position.
    Proposed Sec.  108.320 is similar to 14 CFR 107.17, which applies 
to small UAS operations, and to 14 CFR 61.53(b), which applies to 
operations that do not require a medical certificate.\87\ FAA notes 
that this proposal's analogous prohibitions extend beyond the direct 
operation of a UA to circumstances where a medical condition would 
jeopardize the safe performance of other operations personnel duties. 
In other words, proposed Sec.  108.320 would apply to all personnel 
positions (e.g., ground handlers, maintenance personnel, etc.), not 
only a flight coordinator. As explained in section VII.B, the proposed 
rule's personnel requirements would allow operators to develop an 
operations personnel framework appropriate for the complexity and scale 
of their operations with FAA review and oversight. More specifically, 
Sec.  108.300(b) would require operators to identify operations 
personnel required for safe operation of the UAS and its AE. 
Accordingly, FAA has determined that medical conditions that would make 
any person unable to perform the duties of their operations personnel 
position would raise risks to operation safety, and the proposed rule 
makes explicit that the prohibition includes such circumstances.
---------------------------------------------------------------------------

    \87\ See 14 CFR 61.23(b).
---------------------------------------------------------------------------

    Operations personnel are responsible for knowing their physical and 
mental conditions, and they must evaluate whether those conditions 
allow safe participation in UAS operations and the performance of their 
duties. If a person serving in an operations personnel position is 
unsure about the limitations of a physical or mental condition, they 
should consult with a physician. In addition, operations personnel 
should, if appropriate, take steps to inform the operator of medical 
conditions in accordance with company policy. Considering the dual 
responsibility that persons and operators share with respect to medical 
conditions and safety, operators should develop and adhere to corporate 
policies that govern reporting and monitoring known medical conditions 
and potential signs of medical conditions that could interfere with 
safe operations and the performance of operations personnel duties.
    As stated in the final rule adopting part 107, the primary reason 
for medical certification is to determine if the airman has a medical 
condition that is likely to manifest as subtle or sudden incapacitation 
that could cause a pilot to lose control of the aircraft, or impair the 
pilot's ability to ``see and avoid.'' \88\

[[Page 38261]]

While FAA anticipates that a wide range of UAS operations could be 
diversely affected by different conditions, FAA anticipates the UA to 
be operated under this proposal to be highly autonomous with built in 
redundancies and preprogrammed commands such that certain medical 
anomalies that would typically disqualify a person from receiving a 
part 67 medical certificate could actually safely operate a certain UA. 
For example, a person who is incapable of moving their fingers would 
not be able to operate a UA with a control station interface that 
relies on manual manipulation using the fingers, such as a keyboard and 
a mouse. However, that person may be able to interact with a control 
station operated through voice controls, or other assistive 
technologies, safely. While FAA has not established a list of 
disqualifying medical conditions under Sec.  108.320, FAA expects 
operators to use reasoned judgment and knowledge of their operations in 
developing and adhering to policies that mitigate the risk of medical 
conditions.
---------------------------------------------------------------------------

    \88\ 81 FR 42159.
---------------------------------------------------------------------------

    FAA has determined that traditional FAA medical certification via 
part 67 is not warranted for operators subject to this proposed rule. 
Part 108 UAS operations present a lower risk than manned operations, in 
part because the operations do not involve passengers onboard the 
aircraft that could be injured in the event of an accident. This 
proposed rule also includes operational requirements that reduce 
reliance on human capacities, and prescriptive medical standards are 
thus not as critical as they are for individuals exercising pilot 
privileges on a manned aircraft. For example, proposed Sec.  108.825 
would require UA to be designed to ``see and avoid'' most other 
aircraft, and proposed Sec.  108.810 would require simplified flight 
controls that permit only limited human interaction during a UA's 
flight. As another example, proposed Sec.  108.170(k) would require 
operators to ensure that a UA's navigation and communication systems 
are working properly prior to conducting an operation. These 
operational requirements and limitations render it unlikely that a 
flight coordinator's impairment would cause the loss of UA navigation 
to its original destination (or emergency landing destination).
    FAA also considered changing ``would'' to ``may'' in Sec.  108.320 
(``. . . the person has a physical or mental condition that would 
interfere with the safe operation. . .'') to clarify that a physical or 
mental condition need not be certain to trigger the prohibition. 
``Would'' conveys definiteness of knowledge about the causal 
relationship between a medical condition and interference with safe 
operations or safe performance of operations personnel duties. By 
contrast, ``may'' expresses possibility, and thus the use of ``may'' in 
these provisions would enlarge the prohibition to include medical 
conditions that could impact safety but where causation is less 
certain. FAA declined to adopt this change in part to maintain 
consistency across similar provisions in the regulations. However, FAA 
invites comment on whether ``may'' should be adopted in the final rule. 
FAA also invites public comment as to whether an airman medical 
certificate should be required for operations personnel, specifically 
for flight coordinators, and the costs and benefits of requiring an 
airman medical certificate.

E. Alcohol or Drugs (Sec.  108.325)

    Despite the enhanced autonomy that FAA anticipates will 
characterize flight operations, operations personnel would continue to 
perform essential roles under proposed part 108. Among other things, 
operations personnel would be responsible for programming, monitoring, 
and intervening in UA operations, as needed; maintaining and repairing 
UA and certain AE elements; and the safe handling, loading, and storage 
of packages, which may include hazardous materials. These functions 
would require operations personnel to make decisions and exercise 
judgment in the regular course of business and in emergency situations. 
Alcohol and drugs can compromise judgment, reaction times, and 
decision-making, which could have serious consequences even in the 
context of mostly autonomous UA operations. Accordingly, FAA has 
determined that operations under proposed 108 must be free from the 
influence of alcohol and certain drugs to mitigate the risks associated 
with impairment.
    Part 91, which contains the general operating and flight rules, 
sets forth general alcohol and drug use prohibitions in Sec.  91.17 and 
Sec.  91.19, which are cross-referenced in Sec.  107.27 for small UAS. 
Likewise, proposed Sec.  108.325 would require operations personnel and 
operators to comply with alcohol and drug use prohibitions mirroring 
those currently in place in parts 107 and 91 of FAA's regulations.
    The purpose of these regulations is to ensure that the safety of 
UAS operations is not impeded by alcohol or drug use. Proposed Sec.  
108.325(a) would specifically prohibit serving or attempting to serve 
in an operations personnel position within 8 hours of consuming an 
alcoholic beverage, while under the influence of alcohol, while using 
any drug that affects the person's faculties in any way contrary to 
safety, or while having an alcohol concentration of 0.04 or greater in 
a blood or breath specimen. Moreover, as proposed in Sec.  108.325(b), 
persons who are serving, ready to serve, or immediately available to 
serve \89\ in an operations personnel position would need to submit to 
alcohol or drug testing upon an appropriate request by a law 
enforcement officer. These proposed requirements align with the exiting 
alcohol or drugs rules for operators under part 91.\90\ Under Sec.  
108.325(c), operations personnel would be required to submit the 
results of certain alcohol or drug tests in their possession, or 
authorize the release of the same, to FAA if FAA has a reasonable basis 
to believe that the person has violated Sec.  108.325(a) and the 
Administrator makes a request for such results. Proposed Sec.  
108.325(d) would prohibit operators from allowing or continuing to 
allow a person to serve in an operations personnel position in 
violation of these requirements. To note, paragraph (d)(1) would 
require the operator to have actual knowledge that the person is in 
violation of Sec.  108.325(a). ``Actual knowledge'' in this context 
means information an employer becomes aware of that an operations 
person has used alcohol or controlled substances based on the 
employer's direct observation of the employee, information provided by 
person's familiar with the employee, a traffic citation for driving 
while under the influence of alcohol or controlled substances, an 
employee's admission of alcohol or controlled substance use, or the 
results of reasonable suspicion testing resulting from observation of 
employee behavior or physical characteristics sufficient to warrant 
such testing in accordance with Sec.  108.325(b). Direct observation as 
used in this instance means either direct observation of alcohol or 
controlled substances use. As used in this section, ``traffic 
citation'' means a ticket, complaint, or other document charging 
driving while under the influence of alcohol or controlled substances. 
In addition, the operator

[[Page 38262]]

may not permit a person to serve in an operations personnel position 
when the person refuses to, first, test upon request of a law 
enforcement officer in accordance with proposed Sec.  108.325(b) or, 
second, furnish or authorize the release of test results requested by 
the Administrator in accordance with Sec.  108.325(c).
---------------------------------------------------------------------------

    \89\ The moniker of ``immediately available'' is intended to 
cover personnel that may only perform operations on a temporary, 
short term, or standby basis (e.g., listed as a backup flight 
coordinator if the assigned flight coordinator becomes 
incapacitated). This is different from being ``ready to serve,'' 
which would mean the operations personnel is preparing to imminently 
begin their assigned duty.
    \90\ See 14 CFR 91.17(a) and (c) (the drug and alcohol 
regulations proposed in part 108 for UAS operations personnel would 
align with the drug and alcohol regulations for a part 91 
crewmember).
---------------------------------------------------------------------------

F. Duty and Rest (Sec.  108.330)

    FAA defines fatigue in AC 117-3 as a physiological state of reduced 
mental or physical performance capability resulting from lack of sleep 
or increased physical activity that can reduce a crew member's 
alertness and ability to operate an aircraft or perform safety related 
duties safely. Further, FAA states that the primary contributor to 
fatigue is lack of proper sleep and the root-cause for crew member 
fatigue may be a combination of scheduling and crew members not 
obtaining the proper amount of rest during their assigned sleep 
opportunity. FAA states that fatigue can lead to weakness, lack of 
energy, lethargy, depression, lack of motivation, sleepiness, decreased 
alertness and situational awareness, and poor decision-making skills. 
Finally, FAA states that fatigue decreases a person's ability to 
perform cognitive tasks and increases variability in performance as a 
function of time on task.\91\
---------------------------------------------------------------------------

    \91\ FAA AC 117-3, Fitness for Duty (Oct. 11, 2012).
---------------------------------------------------------------------------

    The importance of alertness, situational awareness, and decision 
making is not relinquished even though part 108 operations personnel 
would not perform the traditional role of a crew member onboard the 
aircraft. Flight coordinators would still be responsible for monitoring 
a UA and controlling and initiating emergency actions or issuing 
commands to the aircraft during flight as necessary. Should a situation 
arise during an operation that would require immediate flight 
coordinator input, the alertness, situational awareness, and decision 
making of the flight coordinator would be crucial to ensure a safe 
outcome as unforeseen events typically happen quickly without warning. 
FAA also recognizes that all operational personnel play an important 
part in the overall operation of the UA. Personnel may perform such 
delegated duties as conducting preflight checks of the UA for the 
flight coordinator, loading the UA, or assembling the UA prior to 
operations. In performing such functions, the same importance of 
alertness, situational awareness, and decision making is necessary to 
ensure the overall safe outcome of an operation.
    Fatigue in manned aviation has led to events such as procedural 
errors, unstable approaches, lining up with the wrong runway, landing 
without proper clearances, and overall poor decision making. Though 
this proposed rule is for highly autonomous UA operations, FAA 
anticipates similar parallels in operational errors with manned 
aircraft that have stemmed from fatigue.
    FAA has previously determined that if a person has had 
significantly less than 8 hours of sleep in the past 24 hours, he or 
she is more likely to be fatigued.\92\ In parts 121 and 135, FAA 
generally requires a minimum of a 10 consecutive hour rest period 
preceding flight time. Because FAA views less than 8 hours of sleep as 
being the point for increased fatigue, a minimum of 10-hour rest period 
would leave time to complete duty and initiate an 8-hour rest period 
with an hour prior to the next duty report time. Therefore, FAA 
proposes in Sec.  108.330 that operations personnel would be limited to 
a maximum 14-hour duty day and a maximum 50-hour work week. In 
addition, required operations personnel would be required to take a 
minimum 10-hour consecutive rest period which is free of all 
responsibility for work or duty on behalf of the operator within the 24 
hours prior to reporting for duty. In addition, FAA proposes that 
required operations personnel would be required to receive a minimum of 
one day of continuous rest, which would be free of all responsibility 
for work or duty on behalf of the operator, per week, each week in 
which the operator schedules them for duty. As addressed in proposed 
Sec.  108.475(f)(6), the provisions of Sec.  108.330 would not be 
applicable to recreational permit holders.
---------------------------------------------------------------------------

    \92\ Flightcrew Member Duty and Rest Requirements final rule, 77 
FR 330 (Jan. 4, 2012).
---------------------------------------------------------------------------

G. Security Threat Assessment for Certain Personnel (Sec.  108.335)

    Pursuant to TSA recommendation, FAA proposes in Sec.  108.335 to 
require that certain covered persons who are engaged in BVLOS 
operations undergo up to a Level 3 security threat assessment (STA) 
conducted by TSA. Covered persons would include those who perform the 
functions of an operations supervisor; perform the functions of a 
flight coordinator; have unescorted access to the UAS; have unescorted 
access to the cargo loaded for transport on the UAS; or have unescorted 
access to the control or the flightpath of the UAS. As is the nature of 
their functions and access, such persons naturally play a critical role 
in the security and integrity of the operations. An individual with bad 
intent performing such functions could cause great harm to the public 
by using UAS to conduct attacks or strikes on civilian populations or 
transporting prohibited cargo over residential or urban areas where no 
guardrails exist to restrict where the UAS travels. TSA administers 
such vetting requirements among similarly situated surface, maritime, 
and aviation transportation workers. FAA believes, and TSA concurs, 
that similar requirements are advisable for these proposed part 108 UAS 
operations.
    A Level 3 STA includes a check of criminal history, immigration, 
and intelligence-related databases and watchlists, as codified at 49 
CFR 1572.103-107.
    Applicants would most likely visit a TSA enrollment center to 
provide identification verification documents needed for the 
assessment. TSA may develop other processes in the future to permit the 
submission of information electronically for this population. Details 
regarding such alternative processes would be included in a final rule 
resulting from this NPRM or in a future rulemaking more broadly related 
to vetting programs promulgated by TSA. The proposed rule text accounts 
for this potential by stating the individuals must follow the 
enrollment procedures approved by TSA. Finally, any individual who is 
adversely affected by security vetting may seek redress from TSA using 
the procedures and standards codified at 49 CFR part 1515.
    The proposed rule also references the information TSA requires 
applicants to provide for vetting (which TSA has set forth in 49 CFR 
1572.9), and the applicant's ongoing responsibilities to maintain an 
STA (which TSA has described in 49 CFR 1572.11). In addition, TSA notes 
that it is required by law under 6 U.S.C. 469 to collect fees to 
recover all vetting costs, and applicants submit those fees to TSA 
during the enrollment process. The fees for the Level 3 STA are set 
forth in TSA regulation 49 CFR 1572, subpart E. Finally, any individual 
who is adversely affected by security vetting may seek redress from TSA 
using the procedures and standards codified at 49 CFR part 1515.
    FAA believes this STA proposal is necessary to ensure the security 
of these operations and could help mitigate the risk of a person who 
poses a security threat from serving in a position that impacts the 
flight of the UAS.
    TSA and FAA invite comment on this STA proposal from all affected 
parties.

[[Page 38263]]

Based on the data and information received, TSA and FAA may determine 
that the scope of the affected population or the breadth of the STA 
should be expanded or decreased for certain covered persons. In light 
of the potential security risks of these operations, including foreign 
ownership and operation, TSA and FAA are also interested in whether the 
scope of individuals who must be vetted should be expanded to include 
individuals who have ownership or control of the corporate entity 
conducting BVLOS operations. For instance, TSA imposes STA requirements 
for individuals who are proprietors, general partners, officers, 
directors, or owners of an indirect air carrier under 49 CFR 1548.16.
    Finally, including the overarching vetting requirement in 14 CFR 
part 108 rather than TSA's regulations is consistent with other vetting 
conducted for airmen certificate holders. While TSA's regulations 
govern the vetting process itself, it is the FAA that denies or revokes 
a certificate based on TSA vetting. FAA and TSA, however, welcome 
comments on whether TSA should incorporate the overarching requirement 
into 49 CFR chapter XII, subchapter C, rather than in the FAA's 
regulations under 14 CFR part 108.

VIII. Permitted and Certificated Operations (Subparts D and E)

    Under this proposal, FAA would require UAS operators to obtain an 
FAA-issued operating permit or operating certificate to conduct BVLOS 
operations. The rule proposes two categories of operating authorization 
delineated by risk: permitted and certificated operations. Permitted 
operations represent a lower level of risk due to their limited 
complexity and scope. Permitted operations include package delivery, 
agriculture, aerial surveying, civic interest, UA operations training, 
demonstration, recreational, flight tests, and other operations as 
approved by FAA. Permitted operations would have limitations on the 
size of the aircraft, number of aircraft in the fleet, and capacity to 
operate over people, depending on the type of permit. Under this 
proposal, operators would be required to hold separate permits for each 
category of operation, renew their permit(s) every two years, and 
obtain approval from FAA for their area(s) of intended operations.
    Certificated operations would allow more complex operations, with 
larger aircraft, fleet, and greater flexibility to operate over people 
under this proposed rule. Certificated operations would include package 
delivery, agriculture, aerial surveying, civic interest, and other 
operations as approved by FAA. As the operations allowed under a 
certificate would be more advanced than those under a permit, FAA 
oversight would be more significant and involved than with a permit. 
Operators would also be required to hold a communication assessment 
plan to ensure safety of communication links and ground risk, develop a 
SMS, submit to validation tests before FAA, obtain approval from FAA 
for the area of intended operations, and establish and implement a 
training program for their personnel.
    FAA may issue authorizations and limitations as part of the 
operating permits and certificates, and in conjunction with any waivers 
or deviations granted. However, FAA is not proposing a requirement to 
use Operation Specifications (OpSpecs) in the regulations. FAA finds 
that defining the system that FAA uses to document authorizations and 
limitations in the regulations would not be needed because such a 
system would govern the conduct of FAA rather than the regulated 
community. Instead, FAA intends to produce guidance to industry and FAA 
inspector workforce on the expectation of how authorizations and 
limitations will be issued and managed for permit and certificate 
holders.
    The following sections articulate proposed requirements for this 
operating framework, addressing the manner and form in which 
applications would be submitted, the specific authorizations and 
limitations of the various categories of operation, and the process for 
denials of application and suspensions or revocations of the permit or 
certificate.
    For most of the categories of permitted operations and certificated 
operations, one of the limitations would be the maximum weight of the 
UA, including anything carried by or attached to the UA. FAA has 
included weight limits on UA in both part 107, which has a 55-pound 
weight limit, and exemptions, which have specific weight limits 
determined by the type of operation being conducted under the exemption 
and the UA being used. The highest maximum weight for a part 108 UA 
would be 1,320 pounds, per proposed Sec.  108.800(b)(3).\93\ The basis 
for the highest maximum weight being 1,320 pounds is the BVLOS ARC 
recommendations and JARUS limitations based on maximum kinetic energy. 
However, as discussed in subsequent sections, not all permitted 
operations nor all certificated operations would be allowed to use UA 
with a maximum weight of 1,320 pounds. Instead, for many of the 
categories of permitted and certificated operations, there are lower 
maximum weight limits. While the reasons for each category's specific 
weight limitation are detailed in their respective sections, the 
guiding principle in selecting the weight limitations was a spectrum of 
risk. The level of risk varied not only because of the type of 
operation but because of the other associated mitigations, such as 
population density. In order to translate a relatively abstract concept 
like risk into specific weight limits, FAA utilized two limitations on 
weight: the 55 pounds limit for part 107 operations and the proposed 
1,320 pounds overall limit for part 108 UA. This rule proposes three 
weight limits for the various categories of permitted and certificated 
operations (55 pounds, 110 pounds, and 1,320 pounds) to give structure 
to the spectrum of risk. FAA welcomes comments on this approach, as 
well as on the specific weight limits adopted for the various 
categories of permitted and certificated operations. In particular, FAA 
requests comments, with supporting data as available, on allowing 
operations with aircraft between 110 pounds and 1,320 pounds at higher 
population densities than proposed in this preamble.
---------------------------------------------------------------------------

    \93\ FAA has proposed allowing that the 1,320 pounds limit in 
Sec.  108.800(b)(3) could be subject to waiver if a manufacturer 
chooses to seek the ability to manufacture a part 108 UA over 1,320 
pounds, specific to permitted agricultural, UA operations training, 
demonstrations, and other operations as determined by FAA.
---------------------------------------------------------------------------

A. Requesting Operating Permits or Operating Certificates (Sec. Sec.  
108.400 and 108.500)

    FAA proposes to create two avenues for operators to conduct 
operations under part 108. These two paths proposed are operating 
permits and operating certificates. To conduct operations under part 
108, operators would have to obtain either an operating permit or an 
operating certificate from FAA. This proposal creates a mechanism by 
which FAA authorizes each operation, which would mean FAA has reviewed 
the application and issued the permit or certificate, as appropriate. 
Whether issued a part 108 operating permit or certificate, operators 
would have to comply with the applicable performance requirements 
proposed under part 108 as well as any operating limitations imposed by 
FAA or the manufacturer.
    Operating permits, proposed under subpart D of part 108, may be 
issued for eight possible purposes: package delivery, agriculture, 
aerial surveying, civic interest, operations training,

[[Page 38264]]

demonstrations, recreational activity, and flight tests. FAA believes 
that these categories represent the majority of UAS operations in the 
NAS. FAA anticipates that most operators would likely seek an operating 
permit. Alternatively, an operator may seek an operating certificate, 
which places additional requirements for compliance on the operator in 
exchange for increased operating privileges. Operating certificates may 
be requested for four purposes: package delivery, agriculture, aerial 
surveying, and civic interest operations. Operators conducting flight 
training, demonstrations, recreational activity, and flight tests would 
be required to obtain operating permits, as operating certificates 
would not exist for those purposes. FAA recognizes that operators may 
request operating permits or certificates for UAS operations other than 
those categories listed in this proposed rule. As such, FAA may 
authorize operators to conduct their requested operation on a case-by-
case basis pursuant to Sec.  108.400(c) for operating permits and Sec.  
108.500(c) for operating certificates.
    FAA has sufficient safety data to normalize complex UAS operations 
for the proposed type of operations listed under Sec.  108.400(a) and 
Sec.  108.500(a), based on the exemption and waiver requests that FAA 
has evaluated from operators seeking to conduct those specific 
operations. Using lessons learned from market needs, as well as the 
evaluation and issuance of FAA waivers and exemptions, FAA was able to 
categorize and establish limits for each of the proposed types of UAS 
operation. FAA did so by assessing the individual risk associated with 
each type of operation.
    For situations where the regulation allows operators to request 
authorization from FAA to operate beyond the limitations stated in the 
regulations, FAA may place additional conditions and limitations on the 
operating permit or the operating certificate, considering any added 
risk associated with each requested type of UAS operation. FAA would 
also impose appropriate conditions and limitations for any other UAS 
operation not listed in this proposed rule and requested under Sec.  
108.400(c). FAA would apply conditions and limitations consistent with 
the level of risk posed by the proposed operation, as it does with 
existing waivers and exemptions.
    FAA anticipates that there may be types of UAS operations that do 
not meet those specified in Sec.  108.400(a). While FAA invites 
comments on any additional types of operations that should be included 
in the rule, FAA further proposes in Sec.  108.400(c) that FAA may 
approve other operations proposed by an operator that do not fit into 
the types defined in this proposal. However, FAA emphasizes that this 
flexibility would not be a license to exceed the limitations for a type 
of operation already defined in Sec.  108.400(a). FAA would not accept 
a request for an operating permit for operations listed in proposed 
Sec.  108.400(a) in an attempt to exceed the restrictions already 
placed by FAA on any of the operating categories. For example, if an 
operator intends to conduct package delivery operations under a permit 
utilizing a UA with a gross weight of more than 55 pounds, the operator 
would not be able to petition FAA for a special operating permit 
because package delivery operating permits are limited to a gross 
weight of 55 pounds or less. Section VII.B proposes conditions and 
limitations for each type of operation.
    FAA proposes under Sec.  108.400(e) to limit each operator to 
holding only one operating permit per category of UAS operation. This 
limitation is necessary to ensure that operators would not compound 
their FAA-issued operating permits to exceed the restrictions FAA has 
already placed for each type of operations. For example, part 108 
operating permits for package delivery operations would be limited to a 
fleet size of 100 UA. Likewise, a single operator would not be able to 
obtain two package delivery operating permits in hopes of doubling the 
size of their UAS fleet. Operators who would want to exceed that 
operation size limitation would have to work with FAA to obtain a part 
108 operating certificate, which would not have a fleet size limit. As 
such, FAA believes these limitations would facilitate compliance with 
FAA requirements.
    The only exception to this limitation would be a part 108 operating 
permit issued for flight test operations. Flight test permits would be 
issued to UAS manufacturers who want to develop UAS for airworthiness 
acceptance under proposed part 108. Those UAS manufacturers would need 
to test their UAS to validate the UAS's performance. Manufacturers may 
want to test more than one UAS for more than one of the UAS operations 
listed. As such, FAA proposes to except them from being limited to a 
single operation.
1. Application Submission (Sec. Sec.  108.405 and 108.505)
    Prior to conducting UAS BVLOS operations under proposed part 108, 
operators would need to obtain either an FAA-issued operating permit or 
an FAA-issued operating certificate. To do so, operators would be 
required to apply for either the operating permit or the operating 
certificate depending on the type and scale of their UAS operation. 
Under proposed part 108, FAA would review and evaluate all applications 
received for operating permits or operating certificates in order to 
determine whether applicants meet the minimum performance requirements 
to comply with and operate under proposed part 108.
    FAA would require operators to submit their application for an 
operating permit under proposed Sec.  108.405, or an operating 
certificate under proposed Sec.  108.505, in a form and manner 
acceptable to the Administrator. Each applicant would need to describe 
the operation they seek to conduct under proposed part 108. The 
application would include questions, data, and documentation requests 
that verify the applicant's ability to operate in compliance with the 
applicable requirements of this part. This is proposed to be an online 
application system. Operators applying for part 108 operating permits 
would be required to submit the following information in their 
application package, as required under proposed Sec.  108.405: \94\
---------------------------------------------------------------------------

    \94\ Further discussion on requirements for an operator's base 
of operation and recordkeeping requirements, see section V.C of this 
preamble. For further discussion on intended area(s) of operation 
and operator's company manuals, see sections VI.D and VI.O of this 
preamble.
---------------------------------------------------------------------------

    (1) The operator's name and contact information, which would 
comprise of the operator's name (including name of individual who 
serves as the point of contact), physical address, email address, and 
telephone number.
    (2) Address for principal base of operations, if different from the 
address provided for contact information, in accordance with proposed 
Sec.  108.30.
    (3) Name of the individual(s) who serve as operations supervisor, 
in accordance with proposed Sec.  108.305.
    (4) The intended type of UAS operation, in accordance with proposed 
Sec.  108.400(a).
    (5) The intended area(s) of operation(s), in accordance with 
proposed Sec.  108.165.
    (6) Company manual(s) as required under proposed Sec.  108.405.
    (7) A recordkeeping process as required under proposed Sec.  
108.40.
    (8) Operator reporting procedures, as required under proposed Sec.  
108.45.
    (9) The type(s) of unmanned aircraft to be used in operations that 
comply with the requirements of proposed Sec.  108.105.

[[Page 38265]]

    (10) Additional information the Administrator may determine is 
necessary to evaluate the application.
    In addition, operators applying for a certificate for package 
delivery operations would also be required to provide documentation of 
their citizenship status. FAA requests comment on what documentation 
should be provided, including whether the level of documentation should 
be similar to that provided in other certification contexts. From a 
policy perspective, it is FAA's intent that this proposed regulatory 
pathway for scaled BVLOS operations benefits U.S. companies and 
encourages growth in their domestic operations. FAA considered 
proposing application of this requirement to permitted package delivery 
operations but determined that it may not be necessary in all 
circumstances given the anticipated smaller scope of these operations. 
However, FAA requests comment on whether or not permitted package 
delivery operations should also provide their citizenship status as 
part of their application, especially in consideration of the DOT 
regulatory requirement that exists for new certificate applicants in 14 
CFR 204.3(e) which requires a sworn affidavit stating that the 
applicant is a citizen of the United States.
    Under this proposed rule, operators applying for a part 108 
operating certificate would be required to submit the same information 
in their application package as those required by applicants for part 
108 operating permits. Applicants for operating certificates would need 
to identify which type of UAS operations they intend to operate as 
found under proposed Sec.  108.500(a). UAS operations that do not fall 
under one of four categories listed in proposed Sec.  108.500(a) could 
be authorized by FAA, subject to any limitations issued by FAA in 
conjunction with the certificate.
    Because UAS operations under an operating certificate could be 
larger in scale and therefore could have larger impacts on the safety 
and efficiency of the NAS, FAA would require applicants for operating 
certificates to substantiate their application by proving their ability 
to conduct their proposed operation safely. As such, FAA proposes in 
Sec.  108.505(b) that applicants for a part 108 operating certificate 
would need to provide additional information, as well as undergo 
additional steps, to complete their application package. Proposed 
additional requirements for applicants for part 108 operating 
certificates include: \95\
---------------------------------------------------------------------------

    \95\ See section VIII.C of this preamble for further discussion 
on a part 108 operating certificate assessment plan, training 
program, SMS, hazardous materials program, inoperative equipment 
requirement, and duty and rest requirements.
---------------------------------------------------------------------------

    (1) A training program, as required under proposed Sec. Sec.  
108.540 and 108.315.
    (2) Communication and ground risk assessments, as required under 
proposed Sec.  108.550.
    (3) SMS, as required under proposed Sec.  108.560.
    (4) A hazardous materials program, as required under proposed Sec.  
108.570.
    (5) Procedures permitting the use of any inoperative equipment, per 
proposed Sec.  108.555.
    (6) Plan for complying with duty and rest requirements, per 
proposed Sec.  108.330.
    (7) For those operators proposing to engage in package delivery, 
documentation of their citizenship status.
    Requiring applicants to verify their ability to comply with the 
applicable requirements of the proposed part 108 operating permit or 
operating certificate they seek would assist FAA in properly evaluating 
and qualifying operators to ensure that they would be able to conduct 
complex BVLOS operations without compromising the safety or efficiency 
of the NAS. The operator's application package would be evaluated to 
determine whether to grant or deny an applicant's request for a part 
108 operating permit or operating certificate. FAA would evaluate that 
information to also ensure that the operator is capable of conducting 
the operation they seek to conduct.
    Under proposed Sec.  108.405, FAA would evaluate operating permit 
applications for completion and may request additional information or 
documentation, as needed, to supplement the application. In addition to 
reviewing and verifying the applicant's identification and the intended 
area(s) for operations, FAA may also review the applicant's operating 
and maintenance procedures, personnel qualifications, manuals, and 
record-keeping procedures. By evaluating the information submitted as 
part of the application, FAA would be able to assess and determine 
whether the applicant for a part 108 operating permit is sufficiently 
capable and qualified to conduct the operation they seek to conduct 
under part 108 without compromising NAS safety or efficiency.
    In contrast to evaluating an application for part 108 operating 
permits, applications for operating certificates under proposed Sec.  
108.505 would involve a process similar to part 135 certification, 
which involves a collaborative effort between the applicant and FAA to 
review manuals, training programs and operational authorizations. 
Similar to part 135 certification, FAA would assign a certificate 
management team to the operator, and evaluations of applications for 
operating certificates would necessitate regular communication between 
FAA and the applicant. As a part of this engagement with FAA, the 
applicant would also be required to demonstrate their capability to 
meet all the requirements listed under proposed Sec.  108.505(b). FAA 
anticipates that the communication and demonstration would be an 
iterative process, which could require multiple instances of 
communication between FAA and the applicant, depending on the 
completeness of the application and the complexity of the operation(s). 
FAA may also request additional information or documentation from the 
applicant, as needed, to supplement their permit or certificate 
application.
    If FAA approves the application for the requested operation, FAA 
would then issue the applicant the operating permit or operating 
certificate, as requested. The following section will discuss FAA 
issuance of a part 108 operating permit or operating certificate in 
greater detail.
2. Duration (Sec. Sec.  108.410 and 108.510)
    Section 108.410 proposes that permits would have a set duration of 
24 calendar months. Since permitted operations would receive less FAA 
surveillance, an expiration date for permits is necessary to 
periodically verify the operators' continued ability to meet regulatory 
requirements through an application process. Certificated operators 
would not have an expiration date as FAA would conduct routine and 
frequent surveillance on those operations to verify continued 
regulatory compliance. For both operating permits and certificates, FAA 
would retain its ability to suspend or revoke an operating permit or 
certificate in accordance with proposed Sec. Sec.  108.420 and 108.520.
    FAA proposes in Sec.  108.510 that, unless suspended or revoked, an 
operating certificate issued under part 108 would remain in effect 
until the operator surrenders it to FAA, or the operator fails to meet 
the requirements of proposed Sec.  108.530, as discussed in further 
detail below. As explained in section VIII.A, the process of obtaining 
and maintaining a certificate would require continued collaboration 
between the operator and FAA. As such, FAA

[[Page 38266]]

would continue to remain informed on the operator's characteristics, 
qualifications, and whereabouts through regular surveillance--including 
whether the operator is still active and in good standing. As such, it 
is unnecessary to include an expiration date for part 108 operating 
certificates. Similarly, under this proposal, FAA would retain its 
ability to suspend or revoke any part 108 operating certificate issued 
if FAA were to determine that the operator does not meet the 
requirements of part 108.
    In contrast, FAA proposes under Sec.  108.410 that, unless 
suspended or revoked by FAA, an operating permit issued under this part 
would remain in effect for a duration of 24 months. Once issued, an 
operating permit would expire on the last day of the month 24 months 
from the date in which it was issued. For example, if a permit was 
issued on March 15 of 2027, the permit would expire March 31, 2029. 
Operators intending to continue operating under a permit would need to 
apply for a new permit before the expiration of their existing permit 
in a form and manner acceptable to the Administrator. FAA proposes to 
allow operators to submit the application for their new part 108 
operating permit up to 120 days in advance of the expiration date 
listed on their existing operating permit. Applications received and 
approved for a new permit within this period would be valid for a 
period of two (2) years beyond the expiration date listed in their 
existing operating permit.
    The proposed 24-month period would be in line with letters of 
authorization (LOAs), exemptions, certain waivers, and air agency 
operating certificates that FAA approves. In addition to beneficially 
verifying the safety of operations in the NAS on a recurring basis, 24 
months would also provide operators under a part 108 permit with the 
opportunity to assess the practicability of their operation on a 
recurring basis. This proposal also allows the permit holder the option 
to surrender the permit at any time if the operation is or becomes 
unfeasible, or if for some reason the operator can no longer comply 
with the operating requirements of the permit.
    FAA further proposes in Sec. Sec.  108.410(d) and 108.510(b) that 
permits and certificates are not transferable. However, in accordance 
with Sec. Sec.  108.425 and 108.525, FAA proposes that companies that 
undergo name changes, mergers, and acquisition may be eligible to have 
the permits or certificate information updated to reflect the new 
company information, subject to review and oversight by FAA that the 
operation remains largely unchanged.
3. FAA Issuance of Operating Permits or Operating Certificates 
(Sec. Sec.  108.415 and 108.515)
    As noted in section VIII.A, FAA would evaluate each application 
received and may request additional information or documentation, as 
needed, to supplement the application. If FAA were to determine that an 
applicant for an operating permit or an operating certificate is able 
to comply with the applicable requirements under proposed part 108, FAA 
would issue the requested operating permit or certificate, as 
applicable.
    As set forth in Sec. Sec.  108.415 and 108.515, FAA would include 
all of the following information in an FAA-issued operating permit or 
certificate: the operator's name and the location of their principal 
base of operations; type of UAS operation; the permit or certificate 
number and effective date, as applicable; and the expiration date (for 
permits). While each FAA-issued permit under part 108 would be limited 
to one kind of UAS operation, FAA may authorize an applicant for a part 
108 operating certificate to conduct multiple kinds of operation under 
a single operating certificate.
    The information contained in the permit would provide evidence of 
the operator's identity as well as the parameters of their operating 
privileges. Those parameters would include the location of the 
operation, the date and duration of the issued permit, and whether 
there are any operating restrictions placed on the permit--e.g., 
operating over certain population densities or the size limit of the 
operator's UA fleet. FAA would be able to use this information when 
doing surveillance to verify whether the operator is indeed authorized 
to conduct their BVLOS operations, and in doing so, is indeed complying 
with FAA regulations. FAA would conduct surveillance and oversight 
similar to that conducted for part 91 and 107 operations, with more 
robust interactions for certificated operators, as discussed in section 
VIII.C. In addition to conducting routine surveillance of part 108 
operations, FAA would act on reports of violations to conduct further 
investigations.
    Similar to part 108 operating permits, the information comprised in 
each FAA-issued operating certificate would outline the parameters FAA 
places on each operator for safely conducting their requested 
operation. The information would be used to identify the operator as 
well as provide the operator with evidence of their FAA-issued 
authorization to conduct UAS operations in accordance with FAA 
regulations. Through routine surveillance of part 108 operators, FAA 
would be able to determine that the operator complies with the 
regulatory requirements of part 108, in addition to additional 
oversight if necessitated by reports. FAA relies on many sources to 
further investigate complaints, such as accounts from witnesses, video, 
and reports from Federal, State, and local law enforcement agencies.
    Unlike operating permits, operating certificates, as described in 
the proposed rule, would remain active, unless otherwise suspended or 
revoked by FAA, returned to FAA by the operator, or the recency of 
operations had lapsed. As stated earlier, FAA expects the process of 
obtaining an operating certificate to be a collaboration between the 
operator and the Agency. UAS operations conducted using an operating 
certificate are expected to be more complex and larger in scale than 
permitted operations. As such, the certification process would include 
a cooperative effort and constant communication between FAA and the 
operator. This means FAA would remain informed on the operator's 
characteristics, qualifications, and whereabouts, including whether the 
operator is still active and in good standing. Section VIII of this 
preamble discusses the differences between part 108 permits or 
certificates in greater detail.
    Operating permits and certificates issued under part 108 do not 
constitute all the approvals that may be needed to transport property 
for compensation. Operators intending to transport property by air for 
compensation may be considered an ``air carrier'' engaged in ``air 
transportation'', both of which are defined in 49 U.S.C. 40102 and may 
require economic authority from the Office of the Secretary (OST). In 
limited instances, operators whose operations are wholly within the 
geographic limits of a single State, transporting no more than a de 
minimis volume of passengers or property moving as part of a continuous 
journey to or from a point outside the State, may be considered as not 
engaging in air transportation and thus not requiring economic 
authority. However, these determinations are case specific.\96\ 
Operators proposing to

[[Page 38267]]

transport property by air for compensation may wish to consult with OST 
prior to conducting such operations to determine whether economic 
authority is required. OST has established a streamlined process for 
issuing economic authority to UAS operators.\97\ To assist in ensuring 
an efficient Departmental process for these operators, FAA is proposing 
in this rule to require that these operators include documentation of 
their citizenship status in the application process under proposed 
Sec.  108.505(b)(16) for certificated operations.
---------------------------------------------------------------------------

    \96\ See Consent Order, Scott Air LLC d/b/a Island Air Express 
Violations of 49 U.S.C. 41101 and 41712, DOT-OST 2012-0002 (Dec. 28, 
2012) (Holding that an airline flying routes exclusively within 
Alaska constituted interstate transportation because it had a public 
website, 1-800 phone number, and had reservations connected to 
routes to other states) accessible at www.transportation.gov/sites/dot.gov/files/docs/Scott%20Air%2C%20LLC%20dba%20Island%20Air%20Express%20Consent%20Order%202012-12-16.pdf.
    \97\ See Notification to UAS Operators Proposing to Engage in 
Air Transportation notification of procedures, 83 FR 18734 (Apr. 30, 
2018).
---------------------------------------------------------------------------

    The general purpose of obtaining economic authority is to enable 
operations for common carriers and air carriers by providing Federal-
level requirements to meet instead of being subject to state 
regulations that may differ in various states of operation. These 
Federal requirements include insurance that protects the operator and 
the overflown public from unintentional damages. Maintaining those 
requirements is within the Department's scope of authority and in the 
public interest. Accordingly, should such operations constitute air 
transportation and require economic authority given by the DOT, the 
operating permit or certificate issued under part 108 would meet the 
statutory requirements for air carriers and air carrier certificates 
contained in chapters 411, 417, and 447 of 49 U.S.C. Specifically, FAA 
has identified Sec. Sec.  41701, 41702, 41707, 41708, 41709, 41711, 
41712(a), 44702(a), 44705, 44711(a)(4), and 44713(a) as statutes that 
would apply to operators conducting air transportation under part 
108.\98\ FAA welcomes comments on the application of chapters 411, 417, 
and 447 to interstate package delivery operations conducted under part 
108.
---------------------------------------------------------------------------

    \98\ This list is not exhaustive, but it notes the statutory 
obligations that FAA has noted as being specifically applicable to 
part 108 package delivery operators. Operators would also need to 
comply with DOT regulations related to air carriers, including 
economic authority and liability insurance. See 14 CFR chapter II, 
subchapter A.
---------------------------------------------------------------------------

    In sum, the Department as a whole will, as part of this proposal, 
continue to align economic authorities with safety and operational 
authorities. Because the requirements for obtaining economic authority 
are provided explicitly in the statute, those rules will apply to UAS 
air carrier operations in the same way that they apply to all other air 
carrier operations. Nothing in the proposed rule will exempt entities 
wishing to carry or deliver property by UAS from the statutory rules 
set forth in 49 U.S.C. 41101-02, 40101(a)(15), and 41703.

 Table 3--Statutory Requirements and Corresponding Proposed Regulations
------------------------------------------------------------------------
          Statutory provisions                 Proposed regulations
------------------------------------------------------------------------
49 U.S.C. 41701........................  Sec.   108.565.
49 U.S.C. 41702........................  Sec.   108.120(a).
49 U.S.C. 41708........................  Sec.   108.45.
49 U.S.C. 41709........................  Sec.   108.20; Sec.   108.40.
49 U.S.C. 44702(a).....................  Sec.   108.505.
49 U.S.C. 44705........................  Sec.   108.405; Sec.   108.180;
                                          Sec.   108.185; Sec.
                                          108.505; Sec.   108.515; Sec.
                                           108.565.
49 U.S.C. 44711(a)(4)..................  Sec.   108.500; Sec.   108.565.
49 U.S.C. 44713(a).....................  Sec.   108.625; Sec.   108.745.
------------------------------------------------------------------------

    The Department also notes that foreign civil aircraft, as defined 
in 49 U.S.C. 41703 and 14 CFR 375.1, may only be navigated in the 
United States when authorized by the Secretary of Transportation, e.g., 
under 14 CFR part 375, pursuant to a foreign air carrier permit under 
49 U.S.C. 41301 and 41302, or pursuant to an exemption from the permit 
requirement. 49 U.S.C. 41703 prohibits foreign operators from 
conducting for-hire intrastate or interstate air transportation 
operations (i.e., cabotage) unless the foreign operator is authorized 
for an emergency exemption under 49 U.S.C. 40109(g). Foreign civil 
aircraft operators may be licensed by DOT to engage in package delivery 
operations in foreign air transportation pursuant to applicable 
bilateral aviation agreements by virtue of a DOT-issued foreign air 
carrier permit under 49 U.S.C. 41301 and 41302, or pursuant to a DOT-
issued exemption from the permit requirement. In terms of other 
commercial air operations conducted solely within the United States, 
foreign civil aircraft operators are in general limited to non-air 
transportation/non-package delivery operations under 14 CFR part 375, 
whereby DOT may authorize an operator to conduct aerial surveying or 
agricultural and industrial operations performed in the United States.
    As with the 2016 rule, the Department only will authorize foreign-
registered UAS and foreign civil UAS operators in the United States if 
it determines that such operations are recognized under international 
agreements or via findings of reciprocity, and that approval would be 
consistent with the statutory parameters in Sec.  41703. The concept of 
reciprocity has a long-standing tradition in international relations, 
and it has been the long-standing policy of DOT to require a finding of 
reciprocity before allowing commercial air operations or air 
transportation to, from, or, as applicable, within the United States. 
Operators of foreign civil aircraft may wish to consult with DOT prior 
to conducting such operations to determine what authorization is 
required.
4. Denials, Revocation, and Suspensions (Sec. Sec.  108.420 and 
108.520)
    Under proposed part 108, FAA would have the ability to deny, 
suspend, or revoke a part 108 operating permit or certificate. FAA 
proposes that it would be able to deny an application for a permit or 
certificate if FAA finds that operators are not properly or adequately 
equipped or are not able to conduct safe operations. Further, FAA 
proposes that it would be able to revoke or suspend an existing 
operating permit or certificate if any of the conditions in proposed 
Sec.  108.420 or Sec.  108.520 are present.
    First, FAA would be able to deny an application or suspend or 
revoke an existing permit or certificate if FAA were to find that the 
operator does not meet the requirements of part 108. It is critical 
that operators under part 108 comply with all applicable requirements 
to ensure the safety of the NAS and persons and property on the ground. 
Providing FAA with these grounds for a denial, suspension, or 
revocation would

[[Page 38268]]

ensure an enforcement mechanism for violations.
    Second, FAA may deny an application or suspend or revoke an 
existing permit or certificate if FAA were to conclude that the 
applicant is not properly or adequately equipped or is not able to 
conduct safe operations under this part. This would include those 
applicants who are unable to conduct safe operations due to financial 
reasons. For example, an inability to conduct safe operations due to 
financial reasons may stem from not being able to afford insurance 
coverage due to damages incurred in an accident involving the UAS or 
from the operator declaring bankruptcy.
    FAA would also be able to deny an application or suspend or revoke 
an existing operating permit or certificate if the Administrator were 
to find that the operator previously held any FAA-issued permit or 
certificate that was revoked. Similarly, FAA would be able to deny an 
application for a permit or certificate or suspend or revoke an 
existing operating permit or certificate if the operator filled or 
intended to fill a management position with an individual who exercised 
control over an operator, or an individual who held the same or a 
similar position with an operator, whose permit or certificate was 
revoked or is in the process of being revoked, so long as that 
individual materially contributed to the circumstances resulting in the 
revocation.
    In addition, FAA would be able to deny an application for a permit 
or certificate, or suspend or revoke an existing operating permit or 
certificate, if an individual who would have control over the operator, 
or a substantial ownership interest in the operator, had the same or 
similar control or interest in an operator whose permit or certificate 
was revoked, or is in the process of being revoked, so long as that 
individual materially contributed to the resulting revocation. Finally, 
FAA would be able to deny an application for a permit or certificate or 
suspend or revoke an existing operating permit or certificate if the 
operator engaged in any violation of the rule.
    Any of these actions may provide FAA with reason to believe that 
the operating permit or certificate holder, or applicant for an 
operating permit or certificate, may participate in future violations 
or non-compliances with FAA regulations. As with any aviation incident 
or accident, FAA has the authority to conduct investigations into 
possible violations of 49 U.S.C. subtitle VII (Aviation Programs), part 
A (Air Commerce and Safety) provisions or regulations and orders issued 
under that part. When FAA becomes aware of any potential regulatory 
violation, including violations or non-compliances with FAA 
regulations, FAA performs an investigation to determine whether a 
regulatory violation occurred. The investigation is conducted in 
accordance with agency guidance, such as FAA Orders 8900.1 and 2150.3. 
After the investigation is complete, FAA Flight Standards Service 
determines the proper action to take based on the guidance in the 
above-described FAA Orders. However, FAA would holistically evaluate 
each applicant with a basis for denial to determine if it has reason to 
believe it should not issue a permit or certificate. As such, these 
actions would not require FAA to deny an application or suspend or 
revoke an existing operating permit or certificate. However, this 
requirement ensures that FAA would have the authority to deny, suspend, 
or revoke operating permits or certificates when there is an operator 
or applicant that may threaten public or aviation safety.
5. Amendments (Sec. Sec.  108.425 and 108.525)
    Under proposed Sec. Sec.  108.425 and 108.525, FAA would be able to 
amend any operating permit or certificate it has issued under part 108 
if FAA were to determine that safety in air commerce or public interest 
requires or allows for the amendment. Similarly, an operator would be 
able to submit a request to amend their operating permit or operating 
certificate under proposed Sec.  108.425 or Sec.  108.525, as 
applicable.
    Operators would be able to submit a request to change any of the 
information submitted in accordance with Sec.  108.405--for operating 
permits--or Sec.  108.505--for operating certificates. Those changes 
would include, but would not be limited to, changes to the operator's 
name, address, and type of UAS operation. However, this would not 
include the ability to transfer a certificate from one legal entity to 
another. As described in Sec. Sec.  108.410 and 108.510, permits and 
certificates are not transferable. However, companies that undergo name 
changes, mergers, and acquisition may be eligible to have the permits 
or certificate information updated to reflect the new company 
information, subject to review and oversight by FAA that the operation 
remains largely unchanged.
    Any changes submitted to FAA would be reviewed in accordance with 
Sec.  108.425 or Sec.  108.525, as applicable. FAA may decide to grant 
the amendments--which would then warrant the issuance of an updated 
permit or certificate. However, if FAA were to determine that it is in 
the interest of public or aviation safety to deny the operator-
requested amendment, then FAA would proceed with issuing a denial. When 
FAA proposes to issue an order amending, suspending, or revoking all or 
part of any certificate, the procedure in Sec.  13.19 of part 14 would 
apply.
    Sections 108.425(d) and 108.525(d), would provide operators an 
opportunity to petition FAA's decision to deny an amendment request 
that was initiated by the operator. FAA would require operators to 
submit those petitions within 30 days of receiving FAA amendment or 
denial of an operator's request to an amendment. Providing operators 
with the opportunity to appeal FAA's decisions would ensure that 
operators receive due process. Thirty days should provide operators 
with sufficient time to submit requests to appeal FAA decisions.
    FAA understands that changes to an operation are inevitable over 
time. It would be the responsibility of the operator to ensure that FAA 
is informed of any changes in operations or business plan. Similarly, 
FAA understands that NAS characteristics may change over time and may 
include stakeholders that do not currently exist. As the entity 
responsible for the safety and efficiency of the NAS, FAA has to remain 
vigilant in making decisions that would not compromise that safety or 
efficiency. This responsibility would include decisions to amend, or 
requests to amend, any permits or certificates issued by FAA.

B. Permitted Operations

    In order to provide simple, rapid access to commencing operations 
for smaller scale and lower-risk operations, FAA is proposing an 
expedited path for authorization to operate with part 108 operating 
permits. Under this proposed rule, FAA would require that a permit be 
obtained for UA operations training, flight testing, demonstration, and 
recreational operations beyond visual line of sight. FAA would also 
provide a path to a permit for package delivery, agricultural use, 
aerial surveying, and civic interest, though operators would also be 
able to obtain a certificate for those types of operations.
    Though the operating permit requires less time to obtain and has 
fewer requirements than an operating certificate, FAA still must ensure 
the safety of the public when issuing operating permits. Because this 
proposal would not require airman certification for individuals to 
operate a UA, FAA must ensure that the responsibility of

[[Page 38269]]

the operation rests with either an individual or an entity that will be 
held accountable for complying with the requirements of an issued 
permit. FAA would require that any person or company wanting to conduct 
a specific operation performed under this proposal would be required to 
obtain either an operating permit or an operating certificate.
    As further discussed in section VIII.B.1 of this preamble, a permit 
holder would be required to designate an operations supervisor who is 
directly responsible for and the final authority for every operation of 
all UA allowed to fly in the NAS under the permit and in accordance 
with the proposed regulations. FAA considered requiring all persons 
conducting operations under this proposal to obtain an operator 
certificate rather than having an operating permit option. However, FAA 
finds that certain operations, as described in this section, are lower 
risk, could occur under the operating permit, and do not require the 
complex process of obtaining an operating certificate.
    FAA proposes in Sec.  108.400(a) that operations under a permit 
would be limited to eight specific purposes: package delivery, 
agricultural, aerial surveying, civic interest, UA operations training, 
demonstration, flight test, and recreational. Each of these categories 
has distinct risk associated with them. For example, agricultural use 
may involve the use of chemicals, while package delivery operations 
would be more likely to interact with the public. By categorizing these 
specific operations through an authorized permit, FAA would be able to 
mitigate the associated risks with tailored authorizations and 
limitations.
    Finally, FAA proposes that operators could request authorizations 
to exceed various limitations proposed in certain permit sections of 
part 108. Each authorization granted to an operational provision could 
include special conditions and limitations imposed by FAA. Combined 
with the requirements and limitations described below, FAA anticipates 
that operations under an authorized permit would be conducted in a 
manner that would allow for safe operation.
1. Active Aircraft Limits, Weight Limits, and Population Density Limits
    FAA anticipates that permitted operations would have less oversight 
than certificated operations under the proposed framework. The less 
oversight of permitted operations would be balanced with having more 
operational limitations than what limitations would be imposed on 
certificated operations. For permitted operations, FAA proposes a 
three-pronged approach to risk mitigations. Each type of operation 
under permit is limited in some combination of weight of aircraft, 
number of active aircraft, and permissible population densities over 
which operations can take place.
    FAA has used a spectrum to determine the appropriate limitations 
for each type of permit, considering a combination of the weight, 
population density restrictions, and number of active aircraft allowed 
per permit. FAA proposes to limit larger aircraft to lower population 
densities, while also limiting the fleet size per permit to vary levels 
of active aircraft, dependent on the operation, (other than 
recreational operations, which are limited to one active aircraft, and 
flight test permits, which have no limits on the number of active 
aircraft). ``Active aircraft'' refers to the number of UA that are 
actively being used in operations and are listed on the operating 
permit application, per proposed Sec.  108.105. This would not preclude 
an operator from having extra ``backup'' drones that could be 
operationalized in the case an active aircraft got damaged or put out 
of commission. In other words, this does not imply limits on the number 
of UA owned or registered in an operator's possession.
    The limit of one active aircraft for recreational permits is based 
on the different regulatory requirements for operators holding 
recreational permits. As discussed in section VIII.B, the operating 
requirements for recreational permits are tailored to the more limited 
operations anticipated under this proposed rule, including limiting the 
distance the UA may be flown, and exceptions from personnel, manual, 
and general operating rules.
    At the other end of the spectrum for proposed permitted operations, 
flight test permits would not have an active aircraft limit. This is 
supported by two mitigations in particular. First, flight test permit 
holders must be qualified UA manufacturers or accredited educational 
institutions. Second, flight test operations can only be conducted over 
Category 1 population densities, the most restrictive of the population 
density categories under proposed part 108.
    For the remaining six types of operating permits, FAA proposes set 
a limit of 100 active aircraft for permitted package delivery, 25 
active aircraft for permitted aerial surveying and civic interest, and 
10 active aircraft for permitted agricultural, UA operations training, 
and demonstration operations. The proposed limit on the number of 
active aircraft is intended to manage the size of the operations 
allowed under permit. FAA is also attuned to the scope of operations 
and the appropriate levels of oversight which aviation safety 
inspectors provide based on risk, which was considered in proposing 
these active aircraft limits. Given that the proposed operating permit 
structure has less FAA oversight and fewer regulatory requirements than 
the proposed operating certificate structure, FAA proposes to use 
active aircraft limits as a risk mitigation to ensure that operations 
remain the appropriate size for this oversight and regulatory model. 
FAA acknowledges that there is no existing precedent for such fleet 
sizes. FAA has not implemented active aircraft limits on a large scale 
for UAS operations previously. FAA requests comments on the use of 
specific active aircraft limits for each type of permitted operation, 
as opposed to a consistent limit for most commercial operations. In 
addition, FAA requests comments on the specific proposed active 
aircraft numbers. In particular, FAA requests comments on if certain 
types of operations based on their complexity, geographical scale, or 
other factors warrant different active aircraft limits. FAA also 
solicits comments regarding the maximum economically feasible size and 
scope of operations under the proposed limits including estimated 
numbers of employees, operating locations or bases of operations, and 
geographic area. Detailed explanations of each active aircraft limit 
are located in sections VIII.B.4 through VIII.B.9.
    FAA also considered proposing a generally consistent number of 
allowed active aircraft depending on the type of operation while 
determining whether differentiating between types of operations would 
be appropriate. As such, FAA considered setting the active aircraft 
limit to 25 for all operations. Ultimately, FAA determined that 
variable limits was a more appropriate way of limiting the size of 
operation to ensure sufficient operator oversight and appropriate level 
of safety for each different type of operation, while also allowing the 
different types of operations to have sufficient number of aircraft to 
be economically viable. FAA invites comment on the concept of a 
generally consistent active aircraft limit for permitted operations. 
FAA also welcomes comments, including supporting data, on whether FAA-
proposed limits of active aircraft are appropriate in order to support 
the operations that would be conducted under that type of permit.
    As noted previously in this section, FAA is proposing three weight

[[Page 38270]]

categories for both permitted and certificated operations, with the 
applicable weight category depending on the type of operation. The 
highest weight limit, 1,320 pounds, is supported by JARUS Specific 
Operations Risk Assessment (SORA) and the BVLOS ARC recommendations, as 
further discussed in section XI.B. of this preamble. It also aligns 
with the weight limit that has been traditionally used for light-sport 
aircraft as defined in 14 CFR 1.1.
    The other two proposed weight limitations are 55 pounds and 110 
pounds. 55 pounds is consistent with the weight restriction in part 
107, while 110 pounds is consistent with FAA's experience of approving 
operations with UAS over 55 pounds through exemptions. The specific 
weight restrictions associated with each type of operating permit are 
described in the following sections (section VIII.B.4-VIII.B.11).
    Under proposed part 108, no permitted operations would be able to 
be conducted over Category 4 or Category 5 population densities. In 
addition to this broad limitation, FAA proposes to set various limits 
on population densities over which permitted operations may operate. 
FAA proposes that the permitted operations that are allowed to have UA 
up to 1,320 pounds would be able to only operate over Category 1 areas. 
Permitted operations that are allowed to have UA up to 110 pounds would 
be able to operate over Category 3 population densities and below, with 
certain exceptions for civic interest if in an emergency situation. FAA 
proposes these limits to ensure the permitted operations, with their 
reduced oversight and regulatory requirements, would be appropriately 
limited in scope compared to the certificated operations that have more 
robust training programs, communication and ground risk assessments, 
and safety management systems to mitigate the risks associated with 
operations in more densely populated areas.
    The following sections discuss the specific weights and population 
limits associated with the permitted operations, as shown in table 4.

                         Table 4--Limitations on Permitted Operations by Operation Type
----------------------------------------------------------------------------------------------------------------
                                   Maximum weight                        Maximum population       Additional
           Permit type                (pounds)        Operation size          density            limitations
----------------------------------------------------------------------------------------------------------------
Package delivery.................              55  100 aircraft.......  Cat 3..............  No hazmat.
Agricultural.....................           1,320  10 aircraft........  Cat 1..............  No dispensing over
                                                                                              people.
Aerial surveying.................             110  25 aircraft........  Cat 3..............
Civic interest...................             110  25 aircraft........  Cat 3..............  Must be under
                                                                                              contract to
                                                                                              Federal/State/
                                                                                              local/Tribal
                                                                                              government.
UA operations training...........           1,320  10 aircraft........  Cat 1..............
Demonstrations...................             110  50 aircraft........  Cat 2..............
Flight test......................           1,320  No limit...........  Cat 1..............
Recreational.....................              55  1 aircraft.........  Cat 3..............
----------------------------------------------------------------------------------------------------------------

2. Display of Permit (Sec.  108.430)
    FAA proposes that operators would be required to display their FAA-
issued operating permit pursuant to Sec.  108.430. FAA would require 
operators to provide evidence of a valid permit for the operation being 
conducted and that is available at the point of aircraft operations 
control. Current FAA-issued waivers and exemptions require that all 
operational documents be present at the location where the operation is 
taking place. Given the use of digital systems, operators should be 
easily able to produce the operating permit evidence necessary to FAA 
or to a Federal, State, or local law enforcement officer. Further, 
requiring that an operator have an operating permit readily available 
ensures that the permit holder has the operational conditions of the 
permit accessible for reference. FAA proposes the permit can be in 
paper form but may be kept on an electronic device that displays the 
permit legibly and may not be altered by any person that has it stored 
on a device.
3. Cybersecurity (Sec.  108.435)
    FAA understands that integrating low-altitude UAS BVLOS operations 
into the NAS may create conditions conducive to new and innovative 
safety and security threats. In security organizations, a threat is 
generally regarded as anything that can exploit a vulnerability and 
obtain, damage, or destroy an asset, and this threat can be either 
accidental or intentional. Accidental threats usually arise when 
operators unintentionally violate regulations through ignorance or 
negligence. Intentional threats arise when persons engage in criminal 
or malicious activity. Threats from malicious actors are particularly 
nefarious, but both accidental and intentional threats can exploit 
vulnerabilities with impacts to both safety and security.
    FAA anticipates that proposed part 108 operations may introduce 
vulnerabilities, particularly regarding cybersecurity. Various 
cybersecurity threats include unauthorized access to a facility's 
hardware, software, control station or other AE, insufficient 
protections or protocols regarding employee network access, or cyber-
attacks by malicious actors. FAA anticipates that UAS operating under 
this proposed rule would rely on complex technologies that connect the 
UA to various systems and services, enabling remote control, 
communications, data transmission, and other functions. These UAS would 
thus be susceptible to many of the same cybersecurity risks as other 
connected technologies. In general, cybersecurity threats may be 
evaluated by examining the combination of intent, capability, and 
opportunity. Intent and capability are outside FAA's control, but 
opportunity can be mitigated against by protecting vulnerabilities. FAA 
has determined that operators must address the elements listed above to 
cover the many vulnerable access points that could introduce 
cybersecurity threats. This proposed rule already includes some 
requirements to mitigate these threats, including proposed Sec.  
108.150(c), which would require operators to develop and implement 
physical security policies and processes, including preventing 
unauthorized access to the operation's facilities and protecting other 
controlled access areas. Sec.  108.875, which would require UA 
manufacturers to protect the UAS from intentional unauthorized 
electronic interactions.
    To address these cybersecurity risks, FAA proposes to require 
operators to develop and implement cybersecurity

[[Page 38271]]

policies and processes to protect networks, devices, and data from 
unauthorized access. These policies would ensure integrity, accuracy, 
and-reliability of operations. In Sec.  108.435(b)(1) through (4), FAA 
proposes that certificated operators must, at minimum, include 
processes for: protecting software, hardware, and network computing 
infrastructure necessary to protect operations from unauthorized 
access; \99\ ensuring the operator's employee network access privileges 
are limited to those necessary to fulfill normal job duties; ensuring 
access privileges are turned off/removed for former employees; 
preparing for, responding to, and mitigating the impact of cyber-
attacks; collecting and analyzing data to measure the effectiveness of 
the cybersecurity policy and processes; and any other processes the 
operator deems necessary to implement effective cybersecurity 
protections. FAA is utilizing performance-based language in this 
proposed requirement to provide operators flexibility with how 
controlled access areas designated.
---------------------------------------------------------------------------

    \99\ www.nist.gov/cyberframework/quick-start-guides.
---------------------------------------------------------------------------

4. Package Delivery Operations (Sec.  108.440)
    FAA proposes several threshold requirements to distinguish 
permitted package delivery from package delivery conducted with an 
operating certificate. These distinguishing factors would be limited to 
Category 3 population densities and lower (as set forth in Sec.  
108.440(h)), lower volume of operations, and smaller UAS. These factors 
are discussed in more detail in the following paragraphs.
    Similar to part 107 operations, FAA proposes to prohibit permitted 
operators from transporting hazardous materials unless operating in 
accordance with 49 CFR 175.9(b), as set forth in Sec.  108.400(d). 
Transportation of hazardous materials would be allowed under 
certificated package delivery operations. However, FAA requests comment 
on whether and how a permitted operator seeking to transport hazardous 
materials may be appropriate. FAA is particularly interested in the 
limited scenarios when operators would seek relief to transport 
hazardous materials (e.g., in support of a disaster response) and what 
types of conditions and limitations the operators believe would 
sufficiently ensure an acceptable level of safety.
    FAA notes that permitted operators operating under 49 CFR 175.9(b) 
are not subject to the prohibition from transportation of hazardous 
materials. 49 CFR 175.9(b) provisions apply to certain special aircraft 
operations. These operations are distinct from package transportation 
and delivery. For example, 49 CFR 175.9(b)(1) allows hazardous 
materials to be loaded and carried in hoppers or tanks of aircraft 
certificated for use in aerial seeding, dusting spraying, fertilizing, 
crop improvement, or pest control to be dispensed during such an 
operation. FAA seeks to provide clarity that Sec.  175.9(b) operations 
are not considered package delivery operations and are not subject to 
the prohibition on permitted operators transporting hazardous 
materials. In addition, FAA notes that while 49 CFR 175.9 also includes 
provisions for rotorcraft external load operations (see 49 CFR 
175.9(a)), those operations are not provided the same exceptions as 49 
CFR 175.9(b) operations.\100\
---------------------------------------------------------------------------

    \100\ See 76 FR 3381.
---------------------------------------------------------------------------

    Though FAA does not propose to authorize a permit holder for 
package delivery from transporting hazardous materials, they may 
inadvertently receive a package for delivery that contains hazardous 
materials. Hazardous material packaging regulations require marking and 
labeling to be included on the outside of a package for identification 
purposes.\101\ Persons loading packages in permitted operations would 
be required to have adequate knowledge and understanding of the marking 
and labeling associated with hazardous materials in order to reject a 
package for transportation. Misidentifying a package or ignorance of 
the contents, which may contain hazardous materials may result in UA 
fires, contamination, or personal injury. Accordingly, FAA proposes in 
Sec.  108.440(b) that package delivery permit holders would be required 
to ensure that any personnel assigned duties and responsibilities for 
the handling or carriage of packages have initial and recurrent 
training in the recognition of hazardous materials and complete 
hazardous materials recognition training every 24 calendar months. 
Requiring this training to be conducted every 24 calendar months would 
be consistent with requirements listed under parts 135 and 121 
hazardous material training.\102\
---------------------------------------------------------------------------

    \101\ 49 CFR part 172.
    \102\ 14 CFR 135.501 and 121.1001.
---------------------------------------------------------------------------

    As proposed elsewhere in this preamble, permitted package delivery 
operators would be limited in operational scope to enable streamlined 
approval of lower-risk part 108 operations. One reason these operations 
would be lower risk is that transporting hazardous materials would be 
prohibited (will-not-carry operations). In addition, compared with 
will-not-carry certificated package delivery operators, permitted 
package delivery operations would be much more limited in size and 
scope, which would also serve to limit the associated risks. Therefore, 
FAA believes requiring an approved hazardous materials training program 
(as proposed for certificated package delivery operations) is overly 
burdensome. However, FAA believes that attending a hazmat recognition 
training course and obtaining a certificate of completion achieves the 
goals of an approved hazardous materials training program without being 
burdensome. FAA notes that if a permitted package delivery operator 
wishes to transport hazardous materials, they may do so as a 
certificated package delivery operator.
    One way that FAA proposes a permitted package delivery operator 
would obtain initial and recurrent training is by taking an FAA 
training course or an equivalent training acceptable to the 
Administrator. FAA intends to offer a free online course that would 
inform permitted package delivery operators about hazardous materials 
to help ensure they do not inadvertently transport or offer hazardous 
materials. For example, the FAA course would focus on what is 
considered a hazardous material and what hazardous materials 
communication markings and labels are (to ensure these packages are 
rejected and not transported), as well as highlighting some 
considerations if the permitted operator wishes to ship hazardous 
materials by an authorized carrier. While this course would provide 
effective methods of ensuring that the permitted package delivery 
operator is aware of hazardous materials transportation considerations, 
it would always be the responsibility of each permitted package 
delivery operator to ensure they do not transport hazardous materials 
or offer hazardous materials. Alternatively, a permitted package 
delivery operator may take a different course or training acceptable to 
the Administrator. For example, FAA may accept alternative training 
from a permitted operator who took hazardous material training that 
meets the requirements in 14 CFR part 135, subpart K or general 
awareness training in 49 CFR 172.704(a)(1) in the preceding 24 months. 
Following completion of any initial and recurrent training, the 
permitted package delivery operator should prepare training records in

[[Page 38272]]

accordance with Sec.  108.40(e)(1). FAA proposes that each permitted 
operator would be required to take recurrent training every two years, 
which mirrors the proposed recurrent training requirements for part 108 
certificated package delivery operators. Lastly, FAA notes that this 
training may support other forms of hazardous materials knowledge, 
including for part 107 operations. While FAA is not proposing to 
require this training for part 107 operations, other operators may take 
this training as an additional means to understand hazardous materials 
transportation requirements.
    FAA proposes in Sec.  108.440(c) that, for package delivery 
permitted operations, operators would be required to ensure that the 
payload in, on, or suspended from the UA is properly secured and does 
not adversely affect the flight characteristics or controllability of 
the UA. An unsecure payload could shift or disconnect partially, 
interfering with UA devices or flight characteristics, which may cause 
shifts in center of gravity and controllability issues. In addition, an 
unsecure payload could disconnect fully, causing hazard to persons or 
property on the ground as it releases from the UA. To avoid any hazard 
to the UA's controllability and flight characteristics and to persons 
and property on the ground, FAA proposes in Sec.  108.440(c) that 
operators would be required to ensure payloads are properly secured and 
do not adversely affect the flight characteristics or controllability 
of the UA. Generally, this is expected to be specified by the UA 
manufacturer as the manufacturer is the systems designer and testing of 
the payload securing device would be completed by the manufacturer. The 
payload system should be addressed in the manufacturer's operating 
instructions for each UAS receiving an airworthiness acceptance as 
further described in section X of this preamble.
    FAA proposes in Sec.  108.440(d) that operators would be required 
to provide notification to each delivery customer that provides the 
customer information about the delivery method and instructs the 
customer to remain clear of the UA during delivery by a distance 
sufficient to minimize the risk of injury. FAA anticipates this may be 
done through means such as electronic means during the order process 
prior to delivery, or other means that ensure information is adequately 
provided to the customer. Because BVLOS package delivery operations may 
not have operator personnel at the site of delivery, a UA delivering a 
package close to the ground, possibly with exposed spinning rotor 
blades, may create a hazard to persons should a person come in contact 
with the UA. By requiring information about the delivery method to be 
disseminated, FAA can ensure the consumer would have an adequate 
understanding of the risk associated with the intended operation. This 
would allow the operator to conduct a delivery as planned while the 
customer retains awareness of the specific parameters of the individual 
delivery in order to reduce the likelihood of injury.
    Under proposed Sec.  108.440(e), FAA would require that the 
operator ensure delivery areas are free of any obstructions that could 
pose a hazard. Delivery area obstruction information is important to a 
UA operation because obstructions in the delivery area could damage the 
UA and increase risk for persons or property on the ground. UA 
operators should always ensure that not only delivery areas, but any 
area used for takeoff and landing are free of any obstructions or 
hazards. FAA anticipates that an operator may accomplish this by in-
person visits to an area, customer provided data, onboard cameras used 
during flight, detailed topography mapping, geospatial data mapping, 
and other technology that would ensure familiarity to avoid obstacles 
and hazards.
    FAA is proposing in Sec.  108.440(f) that operations for package 
delivery would have to be conducted with fewer than 100 active 
aircraft. FAA based this proposed limit for active aircraft on its 
experience with operations that have been conducted under current UAS 
exemptions. These operations under exemptions have consistently begun 
with small numbers of aircraft and incrementally increased in scale, to 
include operations using 100 aircraft. FAA's intention with this 
proposal is to ensure that permitted operations are designed to be 
smaller in scale but remain economically viable, with an active 
aircraft number that allows for UAS being prepared for delivery with 
their packages, those in transit to their destinations, and those 
returning from delivery and being recovered. This is an upper limit, 
and the responsibility would ultimately lie with the operations 
supervisor to ensure safety is maintained during all phases of their 
operations. Package delivery operations, which are expected to 
typically have multiple UA departing from a single hub station with 
monitoring oversight by few persons, would be manageable by operations 
personnel as these numerous UA would likely be visible on a single 
computer display with very little interaction by a human. In addition, 
FAA has observed that there is generally a correlation for battery-
powered UA between the weight of the UA and the maximum distance 
possible for the UA to travel. As UA used for package delivery 
permitted operations are limited to 55 pounds, this correlation would 
suggest a more limited maximum distance than would be expected for 
larger UA. Accordingly, though there will be significantly more UA 
allowed under package delivery permits, the UA would be limited in how 
far they could get from the departure location. This in turn would 
minimize the scope of what a flight coordinator has to monitor in terms 
of geography. This expectation supports allowing more active aircraft 
under a package delivery permit than would be allowed under other forms 
of part 108 permits.
    Due to the proposed limitations on the size of the operations under 
a permit, FAA proposes to place controls on how an operator is defined. 
For the purposes of delineating operator size under a permit, an 
operator would include those operations directly under the control of 
the operator, including operations conducted through lease agreements 
with other persons, subcontractors, or subsidiaries. This is intended 
to prevent companies from working around the size limitations by 
setting up shell companies, lease arrangements, or other arrangements 
which would increase the risk of their operations while avoiding moving 
to a certificated operation.
    Under this proposal, FAA would limit package delivery permitted 
operations to Category 3 population densities and below, as described 
in section VI.H, to reduce the risk to individuals and property. 
Categories 4 and 5 population densities would include areas such as 
shopping centers, multifamily housing, and cities. FAA has proposed in 
Sec.  108.185 to limit Category 4 and 5 operations to certificate 
holders as the mitigations associated with an operating certificate 
provide the level of safety equal to the increased risk. Certificated 
package delivery operations could occur in Category 4 and 5 population 
density areas provided the operator meets the requirements of proposed 
Sec.  108.565. FAA anticipates that package delivery permit holders 
would conduct most of their deliveries within housing developments and 
areas with single-family homes. Further, agricultural, UA operations 
training, and flight testing permitted operations would be limited to 
population density Category 1. Those permitted operations would be 
limited to lower population density categories due to associated 
increased risks such as carriage of hazardous chemicals, and training 
and testing which have a higher

[[Page 38273]]

potential for operator error or in-flight malfunctions. The same risks 
do not apply to package delivery operations under a permit and 
therefore, FAA proposes that package delivery operations with a permit 
may utilize population density categories 3 and below.
    Per the discussion in the paragraph regarding package delivery 
operations in section VIII.A.3, the operator may be considered an ``air 
carrier'' engaged in ``air transportation'' and may require economic 
authority from the OST. See section VIII.A.3 for more discussions on 
this topic.
    As discussed in section XII.B.6.vi, this rule would eliminate 
package delivery entirely as an option under part 107. The feasibility 
of performing extensive package delivery operations with aircraft that 
are limited to line of sight and prohibited from operating over people 
is very limited. In addition, part 107 package delivery operations that 
adhere to the restrictions of that part without waiver or exemption are 
simply not feasible and unnecessarily encumber limited Agency 
resources. Furthermore, the scale these types of operations are 
considering would go far beyond what was contemplated under the part 
107 rule. FAA anticipates that many of the package delivery operations 
currently being conducted under part 107 would shift to permitted 
operations under part 108, necessitating a change to more capable and 
reliable UAS but largely keeping the same footprint as the 2016 rule 
anticipated.
    In addition, FAA proposes in Sec.  108.440(g) that package delivery 
permitted operations would need to be conducted with a UA having a 
combined gross weight of UA and payload no greater than 55 pounds. 
Package delivery operations using an operating permit are proposed to 
be conducted with fewer of the operating requirements, such as training 
programs, SMS, and DAA systems (for Category 5) than package delivery 
with an operating certificate. For package delivery permitted 
operations, a UA weighing greater than 55 pounds would pose a greater 
risk to human beings should an unplanned landing occur than a small UA 
would. Fifty-five pounds is consistent with the limit placed on part 
107 operators. Without this additional standardization as required by 
certificated operations, FAA believes that risk to persons and property 
on the ground would increase with a UA weighing greater than 55 pounds 
as the standardization under certificated operations is meant to 
mitigate risk associated with the increased population density.
    Finally, FAA proposes in Sec.  108.440(i), that prior to conducting 
package delivery operations under a part 108 operating permit, the 
operator must contact TSA to request and obtain a limited security 
program equivalent to 49 CFR 1544.101(g). FAA finds it necessary to 
levy this requirement given the national security implications arising 
from UAS package delivery operations. FAA only proposes to apply this 
requirement to package delivery operations at this time and notes TSA 
has requested comment on imposing additional security requirements on 
other part 108 operations. FAA may adjust this requirement as 
appropriate to conform to applicable security requirements.
    TSA has joined this proposed rulemaking to ensure that TSA's 
security requirements are appropriately applied to UAS operations that 
would be permitted or certificated by the FAA under part 108. TSA's 
proposed amendments are limited to the addition of definitions relevant 
to UAS operations in 49 CFR part 1540 and two revisions to 49 CFR part 
1544 to clarify that these operations are within the scope of its 
requirements. In addition, the FAA is proposing including in 14 CFR 
108.440(i) a requirement for operators to ensure they have obtained a 
security program from TSA before conducting UAS operations under this 
proposed rule. Under this requirement, operators are advised that FAA 
approval is not sufficient. TSA approval is also required.
    These proposed requirements are intended to avoid any unintended 
consequences regarding the security of UAS operations under proposed 
part 108, consistent with TSA's responsibility for aviation security 
and the need to ensure the security of UAS operations as recognized in 
both E.O. 14305 and E.O. 14307. The types of security risks UAS 
operations pose to the public are described in E.O. 14305, which states 
that ``criminals, terrorists, and hostile foreign actors have 
intensified their weaponization of these technologies, creating new and 
serious threats to our homeland.'' Specifically, the E.O. notes that 
``[d]rug cartels use UAS to smuggle fentanyl across our borders, 
deliver contraband into prisons, surveil law enforcement, and otherwise 
endanger the public.''
    The proposed text would ensure that the decision to regulate these 
UAS operations under part 108 does not inadvertently create a security 
gap under TSA regulations.\103\ Under this proposal, which has been 
developed in consultation with TSA, TSA will continue to ensure the 
security of the national airspace by imposing appropriate security 
requirements. The proposed text would require UAS operators authorized 
under part 108 to request a TSA security program. The revisions to 
TSA's regulation would permit TSA to issue a limited program to these 
operations under 49 CFR 1544.101(g). The proposal is consistent with 
TSA's regulatory structure, which has long required certain operators 
regulated under part 119 to request, and maintain compliance with, a 
TSA-approved security program before conducting operations (both 
domestic and foreign carriers operating to/through/from the United 
States).
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    \103\ In the absence of the text, this proposed rule might have 
created uncertainty regarding the applicability of 49 CFR part 1544, 
potentially resulting in a separate TSA rulemaking proceeding while 
this more comprehensive rulemaking remained pending. Having 
concluded that an additional concurrent rulemaking could result in 
confusion and uncertainty, the agencies decided to work together on 
this limited issue as the most appropriate path forward.
---------------------------------------------------------------------------

    The proposed text would clarify that under applicable TSA 
regulations, UAS operators must seek a ``limited program'' under 49 CFR 
1544.101(g). The general requirements for a security program are listed 
in TSA's regulations at 49 CFR part 1544. TSA develops standard 
security programs that meet these requirements. Operators can request 
amendments to the standard security program to address specific 
operational issues, and TSA can approve these amendments to the extent 
they maintain the required level of security. In addition, TSA has 
broad statutory authority to grant exemptions from applicable 
requirements.\104\
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    \104\ See 49 U.S.C. 114(q).
---------------------------------------------------------------------------

    TSA is considering additional changes to security program 
applicability and requirements in a final rule. While some operations 
will not require any additional security requirements beyond vetting, 
in a final rule TSA may expand the applicability of security program 
requirements to cover more than package delivery operations. TSA is 
requesting comment on the scope of operations for which a limited 
security program should be required, in addition to the requirement for 
vetting. For instance, TSA could choose to regulate all permitted and 
certificated BVLOS UAS operations, with limited exceptions for certain 
non-package delivery operations based on (1) UAS size; (2) intended use 
of the UAS; (3) capabilities of the UAS, including payload; (4) 
location of operation centers and range of UAS; (5) planned areas of 
operation; and (6) fleet size.

[[Page 38274]]

Similarly, recreational operations permitted under part 108 may be 
appropriate for an exemption from such requirements given the size, 
weight, and range limits associated with those operations.
    TSA notes that an expanded security program applicability in the 
final rule could include any of a range of security program 
requirements, such as (for instance) requirements to appoint a Security 
Coordinator and to comply with security directives and emergency 
amendments to security programs. TSA anticipates developing model 
language appropriate to the different types of operations that will be 
permitted by FAA under part 108. For example, under the existing 
regulatory requirements in 49 CFR 1544.101(g), TSA could require the 
following security measures as applicable:
     Preventing or deterring the carriage of any unauthorized 
weapons, explosives, incendiaries, and other destructive devices, 
items, or substances.
     Controlling cargo that it accepts for transport on an 
aircraft in a manner that:
    [cir] Prevents the carriage of any explosive, incendiary, and other 
destructive substance or item in cargo onboard an aircraft.
    [cir] Prevents unescorted access by persons other than an 
authorized aircraft operator employee or agent, or persons authorized 
by the airport operator or host government.
     Either verifying that the chain of custody measures for 
screened cargo are intact before loading such cargo on aircraft or 
ensuring that the cargo is re-screened in accordance with TSA's 
requirements.
     Designating a Security Coordinator at the corporate level 
that must serve as the operator's primary contact for security-related 
activities and communications with TSA.
     Implementing control functions with respect to each 
aircraft operation sufficient to:
    [cir] Prevent unauthorized access to areas controlled by the 
aircraft operator under an exclusive area agreement in accordance with 
49 CFR 1542.111 of this chapter.
    [cir] Prevent unauthorized access to each aircraft.
    [cir] Conduct a security inspection of each aircraft before placing 
it into operations if access has not been controlled in accordance with 
the aircraft operator security program and as otherwise required in the 
security program.
    [cir] Prevent unauthorized access to the operational area of the 
aircraft while loading or unloading cargo.
     Training individuals with security-related duties.
    Such requirements would also ensure UAS operators could avail 
themselves of existing procedures in TSA's regulations to modify their 
programs to appropriately address their operational environment while 
maintaining the level of security determined necessary by TSA.\105\
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    \105\ See, e.g., 49 CFR 1544.101.
---------------------------------------------------------------------------

    TSA anticipates that many of the larger operators that will seek 
approval to conduct part 108 operations may already be subject to a TSA 
security program. TSA would work with these operators to determine 
whether they need a new program or could modify their TSA-approved 
program. TSA has also historically adapted its requirements to meet the 
needs of smaller and seasonal operators and would continue to apply 
this flexibility for UAS operations approved under part 108, while also 
ensuring the security risks identified above are being appropriately 
addressed. TSA and FAA request comments on the proposed text and will 
work jointly on adjudicating comments relevant to TSA's proposed text 
in this NPRM. Because FAA is held to the final rule deadline 
established by E.O. 14307, TSA will have to meet that deadline as well 
in co-adjudicating the security-related comments and developing its 
relevant final rule sections.
5. Agricultural Operations (Sec.  108.445)
    FAA proposes in Sec.  108.445(a) that, except for certificated 
operations, no operator would be allowed to conduct agricultural 
operations involving aerial seeding, dusting, spraying, fertilizing, 
crop improvement, or pest control with a UA under part 108 without, or 
in violation of, an agriculture permit issued under part 108.
    Substances used in agricultural aircraft operations can contaminate 
soil and water resources and cause health risks to the general public. 
To ensure the safety of such operations, FAA is proposing in Sec.  
108.445(g) that no person would be allowed to dispense an economic 
poison or cause an economic poison to be dispensed from an aircraft, 
for a use other than that for which it is designed and registered, 
contrary to any safety instructions or use limitations on its label, or 
in violation of any Federal, State or local law or regulation of the 
United States. Further, because of the associated risks, FAA is 
therefore proposing in Sec.  108.445(f) that no operator would be 
allowed to dispense, or cause to be dispensed, from an aircraft, any 
material or substance in a manner that creates a hazard to persons or 
property on the ground.
    In Sec.  108.445(h) FAA proposes the same relief from the 
requirements in proposed Sec.  108.445(e) as is currently allowed under 
part 137 for operators dispensing economic poisons for experimental 
purposes when under the supervision of a Federal or State agency 
authorized by law to conduct research in the field of economic poisons 
or when operating under a U.S. Department of Agriculture permit issued 
pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act (7 
U.S.C. 136). Operations conducted for agricultural purposes require 
fundamental knowledge and skills such as identifying and loading of 
pesticides, dispensing substances with wind drift, and effects of 
economic poisons and agricultural chemicals on persons, animals, and 
plants. Dispensing economic poisons and agricultural chemicals from a 
UA poses an inherent risk to persons and property on the ground. In 
Sec.  108.445(f), FAA proposes that the operator would not be allowed 
to dispense, or cause to be dispensed, from an aircraft, any material 
or substance that creates a hazard to persons or property on the 
surface. These materials and substance may include products intended 
for use in purposes such as plant nourishment, soil treatment, 
propagation of plant life, activities affecting agriculture, 
horticulture, or forest preservation, but not including the dispensing 
of live insects in a manner that creates a hazard to persons or 
property on the ground.
    In addition, FAA further proposes in Sec.  108.445(i) that 
operators conducting agricultural aircraft operations under an 
operating permit would need to have and keep current a comprehensive 
training program that is tailored for their proposed operation, in 
addition to the training required by Sec.  108.315. Proposed Sec.  
108.445(i) provides minimum knowledge requirements for the training, 
including a survey of the area to be worked, safe handling and storage 
of economic poisons, the proper disposal of used economic poison 
containers, the general effects of economic poisons and agricultural 
chemicals on plants, animals, and persons (with emphasis on those 
normally used in the areas of intended operations), the precautions to 
be observed in using agricultural chemicals and economic poisons, 
primary symptoms of poisoning of persons from economic poisons, the 
appropriate emergency measures to be taken, the location of poison 
control centers, performance capabilities and operating limitations of 
the aircraft to be used, and

[[Page 38275]]

safe flight and application procedures. By requiring a training program 
that includes the tailored areas described above, any additional risk 
associated with an individual operation would be further reduced.
    FAA proposes in Sec.  108.445(b) that agricultural aircraft 
operations would need to be conducted with fewer than 10 aircraft 
directly under the control of the operator, including those held 
through lease agreements or subsidiaries. Agricultural UA operations, 
though conducted in areas of overall lower risk to persons and 
property, would be a more complex operation as it relates to 
operational supervisor oversight. For example, package delivery 
operations typically have multiple UA departing from a single location 
and returning to that same location point, providing for a more 
controlled oversight environment as the operational supervisor has 
direct access to the UA, persons, and packages on the ground before and 
after flight. Conversely, UA agricultural operations currently require 
personnel to reposition a UA to a specific location for agricultural 
treatment. While on location, those personnel typically conduct several 
duties to mitigate any hazards, including preflight site surveys, 
loading substances on the aircraft, and continuous monitoring of the 
operational area for persons. As discussed in section VIII.B.4, FAA has 
observed a correlation between the weight of a UA and distance that the 
UA can travel from the departure location. As agricultural permitted 
operations would be able to use larger UA, FAA is cognizant that the 
larger UA could cover greater distances than smaller UA. As the UA 
could be located in a larger circumference, in turn increasing the 
scope that the flight coordinator has to monitor, it is prudent for FAA 
to limit the number of active aircraft to 10 or fewer. FAA has also 
based this limit on its experience with existing exemptions that limit 
agricultural operations to smaller numbers of UA being controlled at 
one time in comparison to package delivery exemptions, which typically 
allow a greater number of active UA. As a result, FAA believes that 
limiting the number of UA under a permitted agricultural aircraft 
operation would reduce the ancillary risk of such an operation.
    FAA proposes in Sec.  108.445(c) that operations conducted under an 
agricultural permit would also be limited to UA weighing no more than 
1,320 pounds. Currently, FAA has issued hundreds of exemptions for UAS 
agricultural operations, weighing up to 1,125 pounds,\106\ with an 
average weight of approximately 500 pounds. Larger UA typically fly 
longer missions due to increased battery power and require larger or 
longer takeoff and landing areas. Longer flight durations and larger or 
longer takeoff and landing areas require more attention by the operator 
for preflight and operational oversight. To ensure these operations 
fall within the expected risk parameters of permitted operations, FAA 
would allow agricultural operations up to 1,320 pounds under permit, 
though subject to limiting operations to only Category 1.
---------------------------------------------------------------------------

    \106\ Pyka, Inc. Grant of Exemption No. 20445.
---------------------------------------------------------------------------

    Agricultural aircraft operations today typically take place in 
sparsely populated areas and directly over non-populated areas, close 
to the ground while dispensing and close to structures. Should a UA 
collide with the ground or a structure, persons may become vulnerable 
to the associated hazard from any substance on the aircraft. FAA 
intends to limit agricultural UA operations to lower categories of 
operations over people (as further discussed in section VI.H) to 
mitigate any risks associated with persons and property on the ground. 
FAA therefore proposes in Sec.  108.445(e) that part 108 agricultural 
aircraft operations with a permit would be limited to Category 1 
population density areas, unless otherwise authorized by the 
Administrator. As discussed above, dispensing economic poisons and 
agricultural chemicals from a UA poses an inherent risk to persons and 
property on the ground.
6. Aerial Surveying Operations (Sec.  108.450)
    Operators conducting photography, videography, mapping, inspection, 
and patrolling with UAS are currently doing so either under the 
confines of part 107 VLOS operations, under a waiver to proposed Sec.  
107.31, or by relief granted through an exemption allowing for aircraft 
weighing more than 55 pounds or BVLOS operations. FAA proposes in Sec.  
108.450(a) that operators would be able to conduct photography, 
videography, mapping, inspection, and patrolling under an operating 
permit.
    Aerial surveying operations would be limited by proposed Sec.  
108.450(b) to operations with fewer than 25 active UA, either directly 
under the operator's control, through lease agreements, or 
subsidiaries. Due to the complexity of these operations under a permit, 
such as operations being conducted from different locations at any 
given time, FAA finds that a higher limit than 25 active UA for aerial 
surveying operations would be detrimental to operational control 
oversight, as the risk with the operator's management oversight 
increases with multiple individual operations in different areas. 
Consistent with the discussion in section VIII.B.4, the correlation 
between UA weight and maximum distance supports the active aircraft 
limit of 25 UA for aerial surveying permitted operations. As discussed 
subsequently, the weight limit for aerial surveying permitted operation 
UA is greater than that of package delivery, but less than that of 
agricultural operations. In addition, FAA has considered the proposed 
allowed population density for the aerial surveying permitted 
operations in setting the active aircraft limit at 25 UA. Aerial 
surveying permitted operations are allowed to conduct operations at 
higher population densities than demonstration permits but are limited 
to a lower population density than package delivery operations.
    FAA proposes in Sec.  108.450(c) those operations conducted for 
purposes such as photography, videography, mapping, inspection, or 
patrolling with an aerial surveying permit would also be limited to a 
UA with a combined total weight of less than 110 pounds, including 
anything attached to or carried by the UA. Higher-weight aircraft 
typically fly lengthier missions due to increased battery power or fuel 
quantity and require larger or longer takeoff and landing areas due to 
increased size and takeoff and landing speeds directly related to 
weight. More extended operations and larger or longer takeoff and 
landing areas would require greater attention to the operator's 
preflight planning, oversight, and additional risk mitigations to 
maintain safe operations as the overall complexity of the operation 
increases. FAA proposes to limit aerial surveying operations to less 
than 110 pounds. FAA has similarly issued waivers for operations with 
UA weighing more than 55 pounds. FAA does not however, anticipate a 
significant need for UA heavier than 110 pounds for purposes of aerial 
surveying since applications for waivers with UA greater than 110 
pounds for these purposes are not requested frequently. Furthermore, 
FAA can mitigate risk associated with aerial surveying by limiting the 
UA's weight.
    In addition, FAA proposes in Sec.  108.450(d) that aerial surveying 
operations would be limited to Category 3 population density areas or 
lower, in accordance with Sec.  108.185. Further, Sec.  108.185 also 
generally limits permitted operations to categories 3 or lower, as 
lower population densities correlate to a

[[Page 38276]]

lower risk to persons and property on the ground. FAA anticipates that 
aerial surveying operations would occur in a multitude of population 
densities due to the various purposes of missions, such as 
newsgathering. However, because of the lower weight and because aerial 
surveying operations are typically conducted within the confines of a 
defined area or areas, FAA proposes that a Category 3 population 
density would provide an acceptable level of safety.
7. Civic Interest Operations (Sec.  108.455)
    Under Sec.  108.455, FAA proposes to allow certain civic interest 
operations to be conducted under a permit. For the purposes of this 
rule, civic interest operations would be operations performed by an 
entity contracted to a Federal, State, local, or Tribal government for 
purposes including forest and wildlife conservation (including wildfire 
recovery, wildlife conservation, and tracking climate change) and 
operations in support of public safety (including fire, accident, and 
disaster response). In addition, FAA proposes that, when operating in 
support of a government entity, the operator must coordinate and 
deconflict operations with the law enforcement or government emergency 
management agency responsible for incident response in advance and 
throughout the duration of the operation.
    Civic interest operations conducted under part 108 operating 
permits and certificates would only apply to civil aircraft operations. 
PAO would continue to be governed under the statutory provisions for 
public aircraft as set forth in 49 U.S.C. 40102(a)(41) and 40125 and be 
required to comply with applicable `all-aircraft' operating 
requirements as set forth in 14 CFR part 91. In other words, PAO 
operators can continue to operate as PAO under part 91 pursuant to the 
terms of their valid COA. These provisions provide the legal basis for 
PAO in the United States. FAA has issued an AC \107\ that provides 
information to determine whether government or government-contracted 
aircraft operations conducted within the territory of the United States 
are public or civil aircraft operations under the statutory definition 
of ``public aircraft.'' The civic interest category would not replace 
the use of PAO, but rather would provide other options for operators 
that do not wish to operate as PAO or cannot meet all the PAO 
requirements for the type of operation being conducted.
---------------------------------------------------------------------------

    \107\ Available at www.faa.gov/documentLibrary/media/Advisory_Circular/AC_00-1.1B.pdf.
---------------------------------------------------------------------------

    FAA proposes in Sec.  108.455(b) that operations conducted under a 
civic interest permit would be limited to operations with fewer than 25 
aircraft either directly under the operator's control, through lease 
agreements, or subsidiaries. Civic interest operations usually would 
occur in response to government safety response and support. As these 
operations could occur on short notice and in unpredictable operational 
areas, FAA does not consider it appropriate to increase the overall 
complexity of the operation by allowing for greater amounts of active 
aircraft. FAA therefore proposes to limit the number of active aircraft 
per operator, thus reducing the overall risk associated with the 
operation. Consistent with the discussion in section VIII.B.4, the 
correlation between UA weight and maximum distance supports the active 
aircraft limit of 25 UA for civic interest permitted operations. As 
discussed subsequently, the weight limit for civic interest permitted 
operation UA is greater than that of package delivery, but less than 
that of agricultural operations. In addition, FAA has considered the 
proposed allowed population density for the civic interest permitted 
operations in proposing to set the active aircraft limit at 25 UA, 
which would be the same as aerial survey. Civic interest permitted 
operations would be allowed to conduct operations at higher population 
densities than demonstration permits but would be limited to a lower 
population density than package delivery operations.
    In addition, FAA proposes in Sec.  108.455(c) that UA operating 
under a civic interest permit would not be allowed to have a combined 
gross weight of aircraft and payload of more than 110 pounds. Similar 
to the weight limit proposed for aerial surveying operations, larger 
aircraft typically have increased battery power, allowing for longer 
missions, and require larger or longer takeoff and landing areas due to 
increased size and takeoff and landing speeds directly related to 
weight. Longer duration operations and larger or longer takeoff and 
landing areas require more attention by the operator to the amount of 
preparation and preflight planning of operations.
    FAA is proposing that operations at a gross weight of 110 pounds or 
less would be limited to Category 3 population density areas or lower. 
The additional mitigations of Category 3 (i.e., the strategic 
deconfliction requirements of Sec.  108.190), combined with the lower 
weight, provide sufficient assurance to operate in more densely 
populated areas. As discussed above, larger UA may fly longer 
operations and may require larger or longer takeoff and landing areas, 
increasing the complexity of the operation and the necessary oversight 
by the operator.
    Finally, FAA recognizes that certain life-saving missions with UA, 
such as search and rescue-related missions in disaster or hard to reach 
areas, would be in the interest of the general public. FAA does not 
intend to limit those life-saving operations and recognizes the 
necessity of the expeditious and precise support that civic interest UA 
operations could have on short-notice relief. FAA therefore proposes in 
Sec.  108.455(f) that civic interest operations may be conducted over 
any population density to the extent necessary to safeguard lives in 
imminent threat. While FAA does not propose to define how this is 
determined, it is expected for these to be rare events associated with 
disasters and other unforeseen emergency situations where the use of 
the UAS could help save lives. In these situations, the added risk to 
persons and property on the ground is offset by the life-saving nature 
of the operation. However, FAA emphasizes that this should not be 
construed as routine and everyday occurrences and it is still the 
responsibility of the operator to exercise good judgment and conduct 
any and all operations in the best interest of safety to everyone 
involved, as well as to comply with the prohibition on careless and 
reckless flight.
8. UA Operations Training (Sec.  108.460)
    The overall purpose of UA operations training is to acquire and 
hone basic airmanship skills. While the UA operations in this proposal 
would be mostly autonomous, the systems used for monitoring and 
controlling the UA would use software that provides a means to 
configure the autopilot system as well as providing an in-flight means 
of monitoring and controlling aspects of the UAS. These systems can 
range from straightforward user interfaces to complex arrangements 
requiring advanced training to program and operate the system. FAA 
recognizes that some UAS operators would benefit from training by a 
third party. For example, a UAS manufacturer may be in the best 
position to train persons on the intricacies and details of the UAS 
before an operator's first use of that system. Therefore, FAA proposes 
in Sec.  108.460 that persons operating under a UA operations training 
permit could perform UAS operations training services for any type of 
operation authorized under this part. This would

[[Page 38277]]

not apply to operators conducting their own training programs. UA 
operations training provided by an operator to their own operations 
personnel could be conducted under the same permit or certificate they 
hold for their operations without holding a separate UA operations 
training permit under this section.
    FAA is proposing that a UA operations training permit would be 
exclusively used for training purposes, rather than other types of 
revenue operations. As such, no person would be able to use a UA 
operations training permit in lieu of obtaining the required permit for 
another type of operation conducted under proposed subpart D.\108\ 
However, this would not preclude a UA operations training company 
providing training under a UA operations training permit, while the 
company personnel being trained are conducting operations under a 
different type of permit. But the general expectation is that UAS 
operations training would be conducted in a training environment and 
not during revenue operations. For example, if a company that 
specialized in UAS training held a UA operations training permit, that 
company could train personnel who are employed by a different operator 
that holds an agricultural operations permit. That company could 
perform ``on-site'' training with the agricultural operator while 
actual agricultural operations were being performed. The training 
elements of the operation would be accomplished under the training 
permit, and associated limitations, and the agricultural elements of 
the operation would be conducted under the agricultural permit. The 
training company personnel could demonstrate flight path techniques, 
maneuvering, etc., over the fields. However, the operator holding the 
UA operations training permit would not be able to use their own 
personnel to conduct actual agricultural dispensing operations under 
the UA operations training permit. Rather, they could observe the 
agricultural operations being performed by personnel of the operator 
with the agricultural operations permit and provide guidance and advice 
as part of the training.
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    \108\ For example, an operator who seeks to conduct agricultural 
operations would not be able to seek a UA operations training permit 
to conduct agricultural operations under the guise of UA operations 
training.
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    FAA proposes in Sec.  108.460(b) that UA and objects carried by the 
UAS operated under a UA operations training permit would not be able to 
exceed 1,320 pounds, which is the maximum limit for part 108 UAS under 
proposed Sec.  108.805 without an authorization from the Administrator. 
For more details on UA weights under different types of permits, please 
refer to the introductory language of section VIII.A.1.
    FAA proposes in Sec.  108.460(c) that operations would have to be 
conducted with fewer than ten active aircraft, either directly under 
the operator's control, through lease agreements, or subsidiaries, 
unless otherwise authorized by FAA. As discussed in section VIII.B.4, 
FAA has considered the correlation between UA weight and maximum travel 
distance when proposing active aircraft limits. As the UA weight limit 
for training permits is 1,320 pounds, FAA has decided it is prudent to 
limit the number of active aircraft to fewer than ten because the 
larger aircraft could travel further than small aircraft and would 
therefore place an increased burden on the flight coordinator. This 
aligns with agricultural operations permits under proposed part 108, 
which would be allowed the same number of active aircraft as training 
permits for the same proposed weight. As described with other permitted 
operations above, FAA finds that increasing the number of active 
aircraft above 10 increases the risk associated with the operation and 
management oversight of an operation that may require additional review 
and oversight by FAA. Therefore, operators wanting to provide training 
with more than 10 active UA would have to request this authority, 
provide FAA with any information requested, and comply with any 
additional imposed limitations. FAA does not anticipate that operations 
with more than 10 aircraft would rise to the level of needing the 
additional oversight and controls that becoming a certificated 
operation would entail. This would provide FAA with flexibility to 
authorize more UAS through an individualized risk-based approach. FAA 
seeks comment on whether the public and potential operators agree with 
this approach.
    FAA proposes in Sec.  108.460(d) to limit permitted UA operations 
training with larger aircraft to Category 1 areas, unless otherwise 
authorized by FAA. Larger UA may be able to operate for longer 
durations or require larger takeoff and landing areas, increasing the 
complexity of the operation. Given that the purpose of this permit is 
to train persons unfamiliar with either the UAS, operating environment, 
or policies of the operator, FAA finds it appropriate to mitigate 
ground risk by restricting operations to the lowest population 
densities proposed by this rule and as further discussed in section 
VI.H.
9. Demonstrations (Sec.  108.465)
    In Sec.  108.465, FAA proposes that operations for aerial 
performances, air races, air shows, sales demonstrations, exhibition, 
and the practice and preparations for these events would be conducted 
using a demonstration operations permit. FAA currently authorizes and 
approves waivers and relief granted through exemptions for such 
purposes. A streamlined regulatory process for UA conducting such 
operations would benefit the general public and FAA.
    Demonstrations with UA are an essential aspect of UA operations, as 
manufacturers need to demonstrate new UA to the public. In addition, 
individuals will continue to demonstrate operations such as aerial 
performances and airshows and have the need to practice those 
operations before an event.
    FAA proposes that demonstration purposes would be limited to 
operations with fewer than 50 active UA, unless otherwise authorized by 
FAA. While FAA has proposed active aircraft limits of fewer than 25 UA 
for similarly sized permits (see sections VIII.B.6-7), FAA has 
determined that an active aircraft limit of fewer than 50 is 
appropriate for demonstration permits because they would be limited to 
a lower population density than aerial surveying operations or civic 
interest operations. For general manufacturer demonstration purposes, 
FAA does not foresee an operational circumstance that would require 
demonstrating 50 or more UA at a time. In addition, FAA finds that a 
higher allowance of UA for demonstration operations would be 
detrimental to operational control oversight, as the risk with the 
operator's management oversight increases with multiple individual 
operations in different areas. However, FAA recognizes that different 
demonstrations may necessitate greater flexibility, and FAA therefore 
proposes that operations of 50 or more UA for demonstration purposes 
could occur with FAA authorization. Separate authorization would allow 
for FAA to ensure an acceptable level of safety for each operation.
    As discussed in section VI.M, in proposed Sec.  108.210, operations 
conducted under part 108 would be limited to a UA-to-Flight Coordinator 
ratio of 1:1, except in accordance with a method acceptable to the 
Administrator. Demonstration operations with UA typically involve the 
operator showing system capabilities, UA performance, and maneuvers, 
and operating at a greater than 1:1 ratio would increase the overall

[[Page 38278]]

risk of the operation. FAA does recognize that an operation may require 
a demonstration by a flight coordinator to take place with more than 
one UA. For example, an aerial display may include multiple UA 
performing an in-sync lighted demonstration. In this scenario, FAA 
would have the ability to authorize such operations. This authorization 
would ensure that FAA has evaluated that an operation does not 
adversely affect safety.
    FAA proposes that aircraft operated under a demonstration permit 
would not be allowed to have a combined gross weight of UA and payload 
greater than 110 pounds, unless otherwise authorized by FAA, consistent 
with the proposed requirements in Sec.  108.800(b)(3). Further, FAA 
also anticipates UA manufacturers may want to demonstrate UA that have 
a weight greater than 110 pounds as this rule also allows for 
authorization from FAA for operations with UA weighing greater than 110 
pounds.
    UA operated for demonstration purposes typically perform a flight 
in close proximity to persons to show the UAS capabilities. FAA 
therefore finds that, by limiting the weight of the UA for 
demonstration purposes, should an incident occur, the risk associated 
with a UA weighing no greater than 110 pounds would further be reduced. 
However, FAA recognizes that operators with a demonstration permit may 
need to demonstrate a UA heavier than 110 pounds to fully exhibit its 
capabilities. FAA would therefore have the ability to authorize those 
operations to ensure that the operation does not adversely affect 
safety.
    FAA proposes that demonstration operations with a permit would be 
limited to Category 2 density areas or lower as further described in 
section VI.H of this preamble. FAA believes that operations in these 
areas would not have an adverse effect on safety as mitigations require 
the use of specific equipment for obstacle and aircraft detection and 
avoidance. FAA does not see the need for demonstration operations to 
occur in higher population density areas as purposes for demonstration 
typically take place in front of persons in lower density population 
locations for aerial performances. However, if operators seek to 
conduct demonstrations in higher density areas, they may seek 
authorization from FAA. In addition, with the lower density of persons 
in these areas and the lower weight proposed in this section, FAA 
believes that risk to persons and property on the ground would be 
further reduced.
    Finally, FAA proposes in Sec.  108.465(e) that, regardless of the 
categorization of population density in the operating area, operations 
would need to be conducted at least 500 feet from any persons. Given 
the dynamic operating environment of many demonstration flights--e.g., 
light shows or demonstrations of the full capabilities of a UA for a 
prospective buyer--FAA finds it appropriate to require an additional 
setback distance to protect spectators from any inadvertent operational 
deviations.
10. Flight Test Operations (Sec.  108.470)
    FAA proposes to authorize flight testing under a permit in Sec.  
108.470, a necessary condition to conduct the development testing 
required under proposed Sec.  108.930, functional reliability testing 
required under proposed Sec.  108.935, and production acceptance 
testing required under proposed Sec.  108.735, as discussed in sections 
X.J and XI.AA. Flight testing operations have a higher risk due to new 
aircraft testing and new equipment and software, which require greater 
attention to the mission as operators focus more on how a UAS performs 
during early flights. Flight testing operations would be used to 
understand how a UAS is performing. If further adjustments or 
corrections need to be made, the risk increases with operations over 
persons as the testing is a vetting process that could introduce error 
and failure. Should a mistake or failure occur, persons on the ground 
would be susceptible to the associated hazard.
    Section 108.470(a) proposes that no operator would be allowed to 
conduct operations involving flight tests of new aircraft designs, 
modifications, or other development-related operations with a UA under 
part 108 without, or in violation of, a flight test permit issued in 
accordance with this subpart. FAA recognizes that flight testing 
operations carry an increased level of risk, stemming from the testing 
of new aircraft, equipment, and software. These elements may require 
applicants to assess the performance of UA or AE during initial 
flights. The issuance of a flight test permit enables applicants to 
conduct operations aimed at research and development, as well as the 
verification of design, functionality, limitations, and reliability 
testing. Importantly, this permit would allow for operations under part 
108 without the requirement for an experimental airworthiness 
certificate.
    Section 108.470(b) proposes that flight test permit operations 
would only be allowed to be conducted by UA manufacturers qualified 
under subpart G, or by accredited educational institutions. The purpose 
of this requirement is to allow only applicants seeking airworthiness 
acceptance to be granted a flight test permit for development of UAS 
designed for operations under part 108. FAA does not intend to create a 
parallel path for experimental airworthiness certification, nor does 
FAA intend for this provision to allow operators to obtain a flight 
test permit for recreational use.
    Allowing accredited educational institutions to obtain flight test 
permits would benefit the fields of aviation and aerospace. These 
institutions are often at the forefront of technological innovation and 
research, playing a role in advancing UAS technology. By granting them 
access to flight test permits, it would not only facilitate this 
research but would also encourage innovation within the academic 
community.
    Accredited educational institutions typically possess the necessary 
infrastructure, expertise, and oversight to conduct flight testing 
operations safely. This would ensure that such activities are carried 
out in a controlled environment, minimizing potential risks to public 
safety, and ensuring the integrity of national airspace.
    Section 108.470(c) proposes limiting flight test permitted 
operations to Category 1 population density areas or lower, in 
accordance with Sec.  108.185, unless otherwise authorized by FAA. The 
purpose of this limitation is to mitigate the hazards associated with 
flight test of new design, software, and equipment. FAA acknowledges 
the importance of minimizing public exposure to these potential 
hazards. The development and testing of aviation technologies 
inherently involve uncertainties and risks, particularly when 
introducing novel designs or sophisticated software that have not yet 
been extensively evaluated in operational environments. These risks can 
range from system malfunctions or failures to unforeseen interactions 
with the operational environment, which could potentially lead to 
incidents or accidents.
    FAA's approach to mitigating these risks involves carefully 
managing the exposure of the public to potential hazards during the 
critical phases of testing and evaluation. By limiting flight tests to 
controlled environments or specific conditions, FAA aims to prevent any 
adverse outcomes that could arise from untested or under-tested 
technologies. This precautionary measure would ensure that any 
potential safety issues are identified and

[[Page 38279]]

addressed in a controlled setting, away from densely populated areas or 
critical infrastructure, thereby safeguarding public safety.
    Section 108.470(d) proposes that, under a flight test permit, the 
UA and anything attached to or carried by the UA would not be allowed 
to have a combined total weight greater than 1,320 pounds, unless 
otherwise authorized by FAA. Testing of all UA designs is necessary and 
therefore the weight limit must include the maximum allowable weight 
for any type of part 108 operations. As previously discussed, the 
population density associated with flight testing permits is very low, 
which greatly reduces the risk to persons and property on the ground. 
FAA has therefore proposed allowing higher-weight UA under a flight 
test permit. As further discussed in VI.A, FAA proposes in Sec.  
108.800(b)(3) to limit UA operating under part 108 to no greater than 
1,320 pounds max gross takeoff weight, unless otherwise authorized by 
FAA. This weight limit would be consistent with the safety continuum 
considered for operations of BVLOS UAS.
    In order to permit the full spectrum of flight testing necessary to 
meet the requirements in subparts G and H, FAA proposes in Sec.  
108.470(e) that Sec.  108.105(b), which requires that the UA have an 
airworthiness acceptance, would not apply to operations conducted under 
a flight test permit. FAA recognizes the unique nature of flight 
testing, in which failures can occur as part of the iterative design 
and development process. Given this context, airworthiness acceptance 
is not required for aircraft engaged in such testing activities. This 
approach is based on the understanding that flight testing is 
inherently designed to identify and push the boundaries of what is 
currently possible, including testing and validating the limitations of 
new designs, software, and equipment.
11. Recreational (Sec.  108.475)
    While FAA expects the primary uses of operations conducted under 
part 108 will be commercial, FAA anticipates that individuals will want 
to fly UAS BVLOS recreationally. FAA does not want to omit recreational 
operations from this rule when a framework can be developed to formally 
ensure safe and secure BVLOS operations. FAA proposes to require non-
commercial or recreational operators wishing to conduct operations 
under this proposal to receive a recreational operating permit. The 
recreational operating permit and associated requirements under this 
proposed rule would govern part 108 recreational operations. FAA, 
therefore, would require that no operator may conduct recreational 
operations with a UA under this part without, or in violation of, a 
recreational permit.
    As previously discussed, the main purpose of this proposed rule is 
primarily for commercial purposes, however, FAA anticipates that there 
will be persons wanting to operate UA recreationally that would not be 
possible under part 107. FAA anticipates commercial operations under 
this rule will be conducted mostly over higher population densities 
with a specific mission and route in mind. FAA does not find it prudent 
to oversaturate that airspace with additional recreational operations. 
Therefore, FAA will limit recreational operations to Category 3 
population densities or lower. Further, FAA will limit the maximum UA 
weight under a recreational permit to not more than 55 pounds, which 
includes anything attached to or carried by the aircraft. To further 
reduce ground risk with recreational operations, FAA chose to limit the 
maximum weight in alignment with part 107.
    FAA proposes to limit operations with a recreational permit to a 
maximum distance of 10 nautical miles from the operator. FAA does not 
anticipate recreational operators will have the need to operate at 
great distances from the operator. FAA does not have previous data on 
recreational BVLOS operational distances with UA. As such, FAA chose a 
10 nm maximum distance to ensure a smaller operational footprint. This 
maximum distance would also help manage the operational risk of 
unforeseen battery depletion, a risk that under other operational 
permits would be managed by the corporate entity through their company 
operations manual (which is not required under the recreational 
permit).
    FAA also proposes to limit recreational operations to one UA 
operated by an operator at a time because of the complexity and 
workload of operating more than one UA at a time. While this rule does 
not prohibit ownership of multiple UAS by an individual, operations 
conducted under a recreational permit would be limited to the operation 
of one UA at a time. Per proposed Sec.  108.475(f), recreational permit 
operators would need not comply with the requirements under part 108 
for company operations manuals, experience requirements, base of 
operations, and operations supervisor requirements, the requirement to 
develop and implement a cybersecurity plan, and duty and rest 
requirements. By limiting operations to one UA operated by one 
operator, the complexity of the operation would be reduced by 
maintaining focus on one single UA by one single operator. FAA proposes 
this one person to one UA limitation to further reduce risk to persons 
on the ground as overall attention rests with only one UA by one 
operator.
    Lacking a commercial organizational structure, operators holding a 
recreational permit do not fit cleanly into the roles delineated in 
section VII.B. However, the recreational permit holder would need to 
fulfill responsibilities typically assigned to the operator, the 
operations supervisor, and the flight coordinator.

C. Certificated Operations

    Under this proposal, FAA would require that operations conducted 
with a UA for purposes of package delivery, agriculture, aerial 
surveying, and civic interest that are not conducted utilizing an 
operating permit, as described in section VIII.B of this preamble, 
would require an operating certificate issued by FAA. Unlike permitted 
operations, which also include permits for UA operations training, 
demonstration, flight test, and recreational operations, FAA proposes 
to limit certificated operations to only package delivery, agriculture, 
aerial surveying, and civic interest. Operations conducted for UA 
operations training, demonstration, flight test, and recreational 
purposes are generally more appropriate in areas with lower population 
densities, as a lower population density provides inherent risk 
mitigation should an in-flight occurrence happen. Further, FAA does not 
anticipate a significant need for UA operations training, 
demonstration, flight test, or recreational flights to be conducted in 
higher population density areas. However, FAA proposes that any type of 
operation that are not package delivery, agriculture, aerial surveying, 
and civic interest, can be authorized by FAA, subject to any 
limitations issued by FAA in conjunction with the certificate.
    The requirements under proposed part 108 and any authorizations and 
limitations will be the governing constraints for certificated 
operations FAA uses to mitigate operational risk. Therefore, FAA 
proposes that operations under an operating certificate would need to 
be conducted in compliance with the requirements of part 108 and in 
accordance with any authorizations and limitations issued by FAA.
    FAA considered creating a fifth category of operating certificates 
for

[[Page 38280]]

larger UA carrying cargo. This would have been distinct from the 
package delivery operating certificate due to the size of the UA and 
how the operations would be allowed to occur. As discussed further in 
section VIII.C.8, FAA has proposed a limit of 110 pounds on package 
delivery certificated operations due to the close proximity of package 
delivery to customers and customers' homes. FAA did contemplate that 
there might be an interest in having larger aircraft operate between 
two controlled areas. However, FAA has not yet processed any waivers or 
exemptions related to this type of operation. FAA lacks information on 
how industry might conduct this type of activity and therefore could 
not determine the appropriate risk mitigations for this type of 
activity. However, FAA welcomes comments on the inclusion of a cargo 
transportation operating certificate, particularly on what such a 
certificate may be used for, how it would differ from package delivery, 
and what risk mitigations would be appropriate.
1. Recency of Operations (Sec.  108.530)
    Proposed Sec.  108.530 prescribes the requirements for operator's 
recency of operation. Operations under an operating certificate are 
potentially at a higher risk level than permitted operations due to the 
allowable size and scope of the operation. FAA proposes in Sec.  
108.530(a) that certificated operations under this part must have been 
conducted within the preceding 12 calendar months, or the operator 
would be required to receive authorization from FAA to resume 
operations, as proposed in Sec.  108.530(b). Continued operations 
throughout a calendar year allow an operator to maintain a certain 
amount of proficiency with operations, as daily adherence to company 
manuals, procedures, authorization, and regulatory compliance allows it 
to become routine. In addition, FAA surveillance would be regularly 
conducted for active operations. Given the highly autonomous nature of 
operations conducted under this proposal, FAA feels that proficiency 
with the overall operation for recency requirements are different than 
in manned aircraft operations as referenced in Sec.  119.63. 
Specifically, operations under proposed part 108 would require less 
hands-on aircraft controlling and focus more on UA observing and 
operational management. Therefore, a longer period of time could elapse 
between operations. Further, FAA proposes that FAA may require 
inspections or reexaminations to determine whether the operator remains 
properly and adequately equipped and able to conduct a safe operation. 
FAA anticipates that scenarios may arise that would warrant FAA 
involvement prior to continued operations such as a certificate holder 
with little operating experience who has not conducted operations after 
initial certification.
2. Cybersecurity (Sec.  108.535)
    As discussed in section VIII.B.3, FAA has proposed that operators 
must develop and implement cybersecurity policies and processes. Highly 
automated systems are integral to UAS operations, and this reliance on 
these systems can, if not properly protected, result in a significant 
vulnerability. In Sec.  108.535, FAA proposes to require operators 
conducting operations under a certificate to meet the same performance 
standards as permitted operators proposed in Sec.  108.435. Like 
permitted operators, FAA proposes that operators would need to develop 
and implement cybersecurity policies and processes, which are identical 
to those proposed for permitted operations.
    In Sec. Sec.  108.535(b)(1) through (4), FAA proposes that 
certificated operators must, at minimum, include processes for: 
protecting software, hardware, and network computing infrastructure 
necessary to protect operations from unauthorized access; \109\ 
ensuring the operator's employee network access privileges are limited 
to those necessary to fulfill normal job duties; ensuring access 
privileges are turned off/removed for former employees; preparing for, 
responding to, and mitigating the impact of cyber-attacks; collecting 
and analyzing data to measure the effectiveness of the cybersecurity 
policy and processes; and any other processes the operator deems 
necessary to implement effective cybersecurity protections. FAA is 
utilizing performance-based language in this proposed requirement to 
provide operators flexibility with how controlled access areas 
designated.
---------------------------------------------------------------------------

    \109\ NIST Quick Start Guide available at www.nist.gov/cyberframework/quick-start-guides.
---------------------------------------------------------------------------

3. Training Program (Sec.  108.540)
    Proposed Sec.  108.540 prescribes the requirements for a training 
program. In Sec.  108.540(a), FAA proposes that certificated operators 
be required to establish and implement a training program, acceptable 
to the Administrator, which meets the requirements of subpart C of 
proposed part 108. Generally, an acceptable training program would 
ensure that all operations personnel are adequately identified, 
defined, trained, and evaluated in the performance of their assigned 
duties. Paragraph (a) also specifically references the requirements of 
proposed Sec.  108.315 to ensure operations personnel understand they 
would be required to meet the recurrent training of Sec.  108.315(d) 
remain proficient in each UA, position, and type of operation in which 
they serve.
    The program would include the initial and recurrent training that 
ensures operations personnel remain proficient in each aircraft, 
position, and type of operation in which they serve. Rather than 
prescribe a specific structure that includes instructors and examiners, 
this proposed rule would allow an operator to design a training program 
to fit and support its organizational structure and personnel plan. 
This flexibility would accommodate the wide variety, scope, and 
different levels of training that could be appropriate for any given 
operation. However, the proposal would require the operator to include 
how all required operations personnel will be trained, not just core 
operations personnel like operations supervisors and flight 
coordinators.
    In proposed Sec.  108.540(b), FAA would require an operator to 
ensure that the training facilities, personnel, training material, 
forms, instructions, and procedures are appropriate and current. 
However, it is important to note that FAA would not require an operator 
to provide this training ``in-house.'' As noted in proposed Sec.  
108.540(c), an operator is free to develop and conduct its own training 
or to contract out the training using third-party persons, or any mix 
thereof, so long as the operator has evaluated the course, found it 
appropriate, and provided adequate information to FAA to independently 
evaluate adequacy when submitted with the certificate application in 
accordance with proposed Sec.  108.505(b)(10). In addition, the 
training could consist of online courses, hands-on practical courses, 
instructor-led courses, or any other methods deemed appropriate. 
Regardless of who provides the training, the operator is ultimately 
responsible for providing training that meets the requirements of this 
proposed rule.
    In proposed Sec.  108.540(d), FAA proposes that an operator be 
required to designate a person or persons who are responsible for 
ensuring that operations personnel are appropriately trained. 
Importantly, because the designated person(s) would be required to 
certify as to the proficiency and knowledge of the operations personnel 
being trained or evaluated, they must also be qualified to determine 
such matters. The designated person(s) would also be responsible for 
ensuring that the operations personnel

[[Page 38281]]

records are accurate and maintained. The proposal would not require 
that this training role be the only responsibility of the designated 
person(s). Instead, FAA would simply require they be identified within 
the company and fulfill the requirements of the role. In addition, 
while this proposed rule would not require operators to have 
traditional positions like instructors and examiners on staff, FAA 
acknowledges that this structure can be beneficial for some operations. 
FAA encourages operators, especially those without a proven training 
program, to consider adopting instructional elements of training 
programs used by successful traditional air carriers.
    As noted above, the training program must be acceptable to the 
Administrator. As proposed in Sec.  108.540(e), FAA may order an 
operator to change its accepted training program if it finds that the 
program, its structure, or other elements are not adequate. In 
response, an operator may file a petition to reconsider within 30 days 
of receiving notice, which would stay the order until FAA renders a 
final decision. However, if an emergency requires an action in the 
interest of safety, FAA may require immediate changes to a training 
program after providing a statement of its reasons. This proposed 
approach would preserve FAA's authority and continuing role in 
identifying and addressing potential deficiencies that could affect 
safety, which in turn would allow FAA to ensure that operators refine 
their training regimen considering changes in technology, policy, and 
other matters, as needed.
    Finally, as proposed in Sec.  108.540(f), FAA describes how an 
operator may file a petition for reconsideration for any changes 
requested by the Administrator under paragraph (e).
4. Validation Tests (Sec.  108.545)
    The certification process is designed to preclude certification of 
applicants who are unwilling or unable to comply with the regulations, 
or to conform to safe operating practices. FAA, therefore, proposes 
that each operator with an operating certificate must show that they 
can conduct operations safely and in compliance with applicable 
regulatory standards. FAA proposes in Sec.  108.545 that an operator 
can accomplish this through validation testing.
    First, under proposed Sec.  108.545(a)(1), an operator would be 
required to conduct a validation test during the application process 
for an operating certificate. In Sec.  108.545(a)(2), FAA proposes 
requiring validation testing for the addition of a new make or model of 
aircraft if an aircraft of the same make and model or similar design 
has not been previously validated in the operation. Requiring a 
validation test for this scenario ensures that an operator is capable 
of conducting operations with new aircraft using new or existing 
policies and procedures. FAA proposes in Sec.  108.545(a)(3) requiring 
validation testing for special performance or unique operational 
authorizations as determined by the administrator such as new equipment 
or operational technology. Validation testing ensures operators are not 
only capable of, for example, utilizing the equipment, but also 
proficient, qualified, and familiar with all aspects of it. FAA 
proposes in Sec.  108.545(a)(4) requiring validation testing for an 
operator wishing to conduct operations with multiple UA by one flight 
coordinator. This type of validation testing will ensure proficiency of 
the flight coordinator but also verify that workload management is not 
affected during an operation.
    Proposed Sec.  108.545(a) allows FAA to authorize deviations to the 
requirement for validation testing. FAA will determine whether 
validation testing is required. Validation testing may not be required 
in all instances. For example, FAA may look at the operator's prior 
experience and the complexity of the change. This allows FAA to 
exercise discretion.
    Finally, FAA proposes in Sec.  108.545(b) that all validation tests 
must be conducted under the appropriate operating and maintenance 
requirements of part 108 that would apply if the applicant were fully 
certificated. This would ensure that the other safety mitigations in 
part 108 will apply to the validation test and will allow FAA to 
observe an operator performing as they would during an authorized 
operation. Prior to obtaining an operating permit or certificate, FAA 
would issue a temporary permit or certificate to allow any required 
validation tests to occur. FAA would issue this temporary permit or 
certificate during the application process prior to the validation 
tests, unless FAA authorizes a deviation that allows the operator to 
forego validation tests per proposed Sec.  108.545(a).
5. Communication and Ground Risk Assessments (Sec.  108.550)
    FAA expects any operator that operates under a part 108 operating 
certificate for a BVLOS operation to maintain a robust C2 analysis of 
the area of operations, per proposed Sec.  108.550(a). While C2 is an 
important element to every operation, this extra C2 assessment 
requirement would be limited to certificated operations due to the 
greater potential impact of a loss of C2 in operations that could be 
conducted at that much larger scale. In addition, aircraft are expected 
to be designed with safety features that minimize the impacts of C2 
loss, further minimizing the impacts on smaller operations, as 
discussed in section XI design requirements. Based on current research 
and operational approvals of BVLOS operations, FAA has seen C2 metrics 
that include, but are not limited to, link accessibility, latency of 
link, and operational processes in the event of lost link. FAA expects 
that work performed by industry consensus standards bodies will refine 
the key metrics for C2 over time. For BVLOS operations, an operator 
would need to be aware of the potential for link to their aircraft to 
not be available due to interferences and other reasons along the 
predicted flight path. In addition, FAA expects that BVLOS flights 
could at times experience intermittent lost link. As such, the operator 
would need to do an assessment of how link latency and intermittent 
lost link may impact the safety of their operation and produce 
mitigation protocols in these instances to maintain a low-risk 
operation. FAA looks to industry and other stakeholders for additional 
comment on what additional metrics should be considered in a C2 
assessment, which are expected to be documented in a to-be-developed 
industry consensus standard.
    Without mitigations, the size and complexity envisioned for 
certificated operations would increase operational risk. FAA would 
reduce and mitigate the increased risks through the certification 
process proposed in this rule. FAA proposes that protection of persons 
on the ground in a certificated operation could be reduced further by 
ensuring operators are familiar with the areas of operation and create 
their own mitigations which are acceptable to FAA. FAA therefore 
proposes in Sec.  108.550(b) that certificated operations would have to 
be conducted in accordance with a ground risk assessment plan 
acceptable to FAA that includes pedestrian and moving vehicle analysis 
and considers terrain and human-made obstacles that the operator 
intends to overfly.
6. Inoperative Equipment (Sec.  108.555)
    FAA is proposing in Sec.  108.555 that no person would be able to 
conduct an operation under this part with a UAS with inoperative 
equipment or equipment that has failed its initial performance checks 
unless all of the following requirements are met. First,

[[Page 38282]]

the inoperative equipment would need to be not indicated as necessary 
by the manufacturer of the UA pursuant to the manufacturer's operating 
instructions and must not be required by subpart H of part 108 or 
required for the specific type of operation being conducted. Second, 
the inoperative equipment would need to be removed from the UA, 
deactivated, or otherwise determined not to interfere with the safe 
operation of the UA. Third, a determination would need to be made by a 
person who is authorized by the operator to perform maintenance on the 
UA that the inoperative equipment does not constitute a hazard to the 
UA. Finally, information identifying the inoperable equipment would 
need to be made available to the appropriate operations personnel.
    All aircraft equipment is meant to perform a specific function 
during flight. FAA also recognizes that installed equipment will 
eventually fail on an aircraft if not earlier replaced. However, not 
all installed equipment performs a function that is critical to the 
safe operation of the aircraft. Under this proposed rule, FAA does not 
want to limit an operator from operating a UA with inoperative 
equipment if the equipment deemed inoperative is not necessary for safe 
operation or required for a particular operation. FAA therefore 
proposes, in Sec.  108.555, that certificated operators may conduct 
operations with a UA that has inoperative equipment or equipment that 
has failed its initial performance checks if the inoperative equipment 
is not required to be operational by the manufacturer or is not 
required by any other part of this proposed rule. The manufacturer must 
determine and indicate, under proposed Sec. Sec.  108.720(a)(v) and 
108.870, which items of equipment are essential for the safe operation 
of the UA. However, FAA is proposing to limit this operational 
flexibility to certificated operations, as the increased oversight and 
other mitigations described throughout the proposed rule would provide 
a sufficient level of assurance of the safety of the operation. 
Furthermore, FAA proposes that any inoperative equipment would need to 
be removed from the UA, deactivated, or otherwise determined not to 
interfere with the safe operation of the UA. The appropriate method can 
be predetermined by the manufacturer and included in the operating 
instructions or be determined by the operator. However, FAA will also 
require that a determination is made by a person authorized by the 
operator to perform maintenance on the UA that the inoperative 
equipment does not constitute a hazard to the UA. This requirement 
ensures that someone inspects the inoperative equipment to determine 
the cause of the inoperative functionality to determine if safe 
operations may be continued after removal or deactivation. FAA proposes 
that information regarding the inoperative equipment be made available 
to the appropriate operations personnel for their situational awareness 
and decision making as it pertains to future operations.
7. Safety Management System (Sec.  108.560)
    A safety management system (SMS) is a formal approach for an 
organization to manage risk and ensure the effectiveness of safety risk 
controls. An SMS includes procedures, practices, and policies for 
safety risk management.\110\ In the Safety Management Systems for 
Domestic, Flag, and Supplemental Operations Certificate Holders final 
rule dated January 8, 2015,\111\ FAA stated that requiring an SMS is an 
effort to continuously improve safety by filling gaps through improved 
management practices. The UAS industry is constantly growing and 
technologically advancing, and FAA anticipates this will continue to be 
the case. In addition, FAA recognizes that operations under this 
proposal are a new concept compared to traditional manned aviation 
operations. Though FAA has developed the policy under this proposal to 
mitigate risks, FAA also sees the benefit of an SMS for operations 
within a rapidly growing industry. FAA therefore proposes in Sec.  
108.560(a) that certificated operations under part 108 would need to 
develop, implement, and keep current an SMS that meets the requirements 
of 14 CFR part 5.\112\
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    \110\ FAA Order 8000.369C, Safety Management System.
    \111\ Safety Management Systems for Domestic, Flag, and 
Supplemental Operations Certificate Holders final rule, 80 FR 1307 
(Jan. 8, 2016).
    \112\ Organizations with a sole individual performing all 
necessary operations functions in the conduct and execution related 
to the safe operation of the unmanned aircraft are not required to 
comply with the following provisions of 14 CFR part 5: Sec. Sec.  
5.21(a)(4), 5.21(a)(5), 5.21(c), 5.23(a)(2), 5.23(a)(3), 5.23(b), 
5.25(b)(3), 5.25(c), 5.27(a), 5.27(b), 5.71(a)(7), 5.93, and 
5.97(d).
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    In part 5, FAA has outlined the SMS process to ensure that the four 
major components (safety policy, safety risk management, safety 
assurance, and safety promotion) are included and developed in such a 
manner to ensure that the SMS is fully functioning. FAA proposes that a 
part 108 certificated operator's SMS would need to meet the 
requirements of part 5 in order to incorporate the benefits of SMS into 
part 108 operations.
    FAA proposes an exception to certain part 5 requirements in Sec.  
108.560(b) for certificate holders with a sole individual performing 
all necessary operations functions under part 108. Those certificate 
holders would not be required to comply with the following provisions 
of part 5: Sec. Sec.  5.21(a)(4), 5.21(a)(5), 5.21(c), 5.23(a)(2), 
5.23(a)(3), 5.23(b), 5.25(b)(3), 5.25(c), 5.27(a), 5.27(b), 5.71(a)(7), 
5.93, and 5.97(d). As discussed in the Safety Management System final 
rule (89 FR 33068), these particular regulations would be impractical 
or illogical for single pilot operations when implementing SMS.
    Per proposed Sec.  108.560(c), operators would be required to make 
available to FAA, upon request, all necessary information and data that 
demonstrates that the operator has an SMS that meets the requirements 
set forth in part 5. This would ensure that FAA has enough information 
to verify that an operator has a sufficient SMS.
8. Package Delivery Operations (Sec.  108.565)
    In Sec.  108.565, FAA proposes regulations for package delivery 
certification, as well as requirements for interstate package delivery 
operations. Currently, FAA approves package delivery operations with UA 
through existing part 135 rules, as these are currently the only 
regulations pertaining to transportation of property with smaller 
aircraft. However, part 135 does not address UA operations. In 
developing this rulemaking, FAA is creating a pathway specific to UAS 
operations, with the appropriately tailored requirements for UAS 
package delivery. For existing package delivery operations, FAA exempts 
package delivery operators from numerous part 135, 61, and 91 
regulations, as these parts were originally developed for manned 
aircraft. FAA therefore proposes in part 108 a series of regulations 
that will allow package delivery operations in the NAS without 
requiring exemptions.
    FAA proposes in Sec.  108.565(b) that package delivery operations 
conducted with an operating certificate would be required to ensure 
that the payload in, on, or suspended from the UA is properly secured 
and does not adversely affect the flight characteristics or 
controllability of the UA. An unsecure payload could shift or 
disconnect partially, interfering with UA devices or flight 
characteristics, which may cause shifts in center of gravity and 
controllability issues. In addition, an unsecure payload could 
disconnect

[[Page 38283]]

fully, causing hazard to persons or property on the ground as it 
releases from the UA. To avoid any hazard to the UA's controllability 
and flight characteristics and to persons and property on the ground, 
FAA proposes in Sec.  108.565(b) that operators would be required to 
ensure payloads are properly secured and do not adversely affect the 
flight characteristics or controllability of the UA. Generally, this is 
expected to be specified by the UA manufacturer as the manufacturer is 
the systems designer and testing of the payload securing device would 
be completed by the manufacturer. The payload system should be 
addressed in the manufacturer's operating instructions for each UAS 
receiving an airworthiness acceptance as further described in section X 
of this preamble.
    In Sec.  108.565(c), FAA proposes that UA for package delivery with 
an operating certificate must not have a combined total weight, 
including anything attached or carried by the aircraft, of greater than 
110 pounds. With certificated operations, operators may conduct 
services over all population densities, as further described in section 
V.H. One of the main concerns with any UA operations is protection of 
persons on the ground and reduction of ground risk. In conducting 
package delivery operations, the UA will most likely be operating 
within the higher population density area for longer periods of time, 
as the delivery requires slowing the UA, descending, and making the 
delivery, then climbing back to altitude and transitioning back to 
cruise flight for a return to base. To mitigate the associated risk to 
persons on the ground, FAA proposes to limit the weight of the UA to 
110 pounds for certificated package delivery operations. Should a loss 
of flight occur during certificated package delivery operations, FAA 
anticipates that a 110-pound maximum weight UA would provide for an 
acceptable level of risk with ground contact. FAA's experience with 
granting exemptions for UAS weighing above 55 pounds for package 
delivery operations \113\ demonstrates that these operations, within 
the appropriate operational framework and mitigations, can be safely 
conducted. In addition, the design requirements proposed in this 
preamble would mitigate additional risks, particularly related to loss 
of control in flight or unplanned landings. FAA anticipates package 
delivery aircraft may increase in size and weight if there are rapid 
advances in industry concepts. However, the operational profile of 
package delivery contains aircraft that are routinely operating into 
uncontrolled delivery locations at altitudes very close to the ground 
and over populated areas. As such, the risk profile is very different 
compared to other types of part 108 operations. Therefore, FAA is 
proposing to place higher restrictions on the size of aircraft 
performing these types of operations. The 110-pound maximum limit is 
similar to current package delivery UA operations that are primarily 
conducted with UA at or under 110 pounds under existing exemptions.
---------------------------------------------------------------------------

    \113\ FAA Exemption No. 18601A (Sept. 26, 2022), available at 
www.regulations.gov/docket/FAA-2019-0573.
---------------------------------------------------------------------------

    Further, FAA proposes in Sec.  108.565(d) that operators must 
ensure that the delivery area is free of any obstructions that could 
pose a hazard. Since operations will be conducted BVLOS and in close 
proximity to customers and other people on the ground, operators must 
ensure safe operations at the delivery site. FAA anticipates that this 
may be done by use of onboard cameras, in-person site visits, or other 
technology with the capability of ensuring safe entry and exit to the 
area. By ensuring the delivery area is free of any obstructions or 
hazards, FAA can further reduce risk to persons and property during 
delivery.
    Additionally, in order to continue to protect persons on the ground 
within the delivery area, FAA proposes in Sec.  108.565(e) that the 
operator must ensure each delivery customer is provided information 
about the delivery method that minimizes the risk of injury. Though 
this proposed rule includes mitigations to ensure safety of the flight 
and operational area, FAA finds it appropriate to also ensure that 
customers are aware of the dangers and hazards associated with an 
active delivery. FAA anticipates that operators may provide this 
information electronically or by other acceptable means that operators 
may convey to the customer.
    FAA proposes in Sec.  108.565(f), that prior to conducting package 
delivery operations under a part 108 certificate, the operator must 
contact the TSA and request and obtain a limited security program 
equivalent with 49 CFR 1544.101(g). FAA finds it necessary to levy this 
requirement given the national security implications arising from UAS 
package delivery operations. FAA only proposes to apply this 
requirement to package delivery operations at this time and notes TSA 
has requested comment on imposing additional security requirements on 
other part 108 operations. FAA may adjust this requirement as 
appropriate to conform to applicable security requirements.
    TSA has joined this proposed rulemaking to ensure that TSA's 
security requirements are appropriately applied to UAS operations that 
would be permitted or certificated by the FAA under part 108. TSA's 
proposed provisions are limited to the addition of definitions relevant 
to UAS operations in 49 CFR part 1540 and two revisions to 49 CFR part 
1544 to clarify that these operations are within the scope of its 
requirements. In addition, the FAA is proposing including in 14 CFR 
108.565(f) a requirement for operators to ensure they have obtained a 
security program from TSA before conducting UAS operations under this 
proposed rule. Under this requirement, operators are advised that FAA 
approval is not sufficient. TSA approval is also required.
    These proposed requirements are intended to avoid any unintended 
consequences regarding the security of UAS operations under proposed 
part 108, consistent with TSA's responsibility for aviation security 
and the need to ensure the security of UAS operations as recognized in 
both E.O. 14305 and E.O. 14307. The types of security risks UAS 
operations pose to the public are described in E.O. 14305, which states 
that ``criminals, terrorists, and hostile foreign actors have 
intensified their weaponization of these technologies, creating new and 
serious threats to our homeland.'' Specifically, the E.O. notes that 
``[d]rug cartels use UAS to smuggle fentanyl across our borders, 
deliver contraband into prisons, surveil law enforcement, and otherwise 
endanger the public.''
    The proposed text would ensure that the decision to regulate these 
UAS operations under part 108 does not inadvertently create a security 
gap under TSA regulations.\114\ Under this proposal, which has been 
developed in consultation with TSA, TSA will continue to ensure the 
security of the national airspace by imposing appropriate security 
requirements. The proposed text would require UAS operators authorized 
under part 108 to request a TSA security program. The revisions to 
TSA's regulation would permit TSA to issue a limited program to these 
operations under 49 CFR

[[Page 38284]]

1544.101(g). The proposal is consistent with TSA's regulatory 
structure, which has long required certain operators regulated under 
part 119 to request, and maintain compliance with, a TSA-approved 
security program before conducting operations (both domestic and 
foreign carriers operating to/through/from the United States).
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    \114\ In the absence of the text, this proposed rule might have 
created uncertainty regarding the applicability of 49 CFR part 1544, 
potentially resulting in a separate TSA rulemaking proceeding while 
this more comprehensive rulemaking remained pending. Having 
concluded that an additional concurrent rulemaking could result in 
confusion and uncertainty, the agencies decided to work together on 
this limited issue as the most appropriate path forward.
---------------------------------------------------------------------------

    The proposed text would clarify that under applicable TSA 
regulations, UAS operators must seek a ``limited program'' under 49 CFR 
1544.101(g). The general requirements for a security program are listed 
in TSA's regulations at 49 CFR part 1544. TSA develops standard 
security programs that meet these requirements. Operators can request 
amendments to the standard security program to address specific 
operational issues, and TSA can approve these amendments to the extent 
they maintain the required level of security. In addition, TSA has 
broad statutory authority to proactively grant exemptions from 
applicable requirements.\115\
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    \115\ See 49 U.S.C. 114(q).
---------------------------------------------------------------------------

    TSA is considering additional changes to security program 
applicability and requirements in a final rule. While some operations 
will not require any additional security requirements beyond vetting, 
in a final rule TSA may expand the applicability of security program 
requirements to cover more than package delivery operations. TSA is 
requesting comment on the scope of operations for which a limited 
security programs should be required, in addition to the requirement 
for vetting. For instance, TSA could choose to regulate all permitted 
and certificated BVLOS UAS operations, with limited exceptions for 
certain non-package delivery operations based on (1) UAS size; (2) 
intended use of the UAS; (3) capabilities of the UAS, including 
payload; (4) location of operation centers and range of UAS; (5) 
planned areas of operation; and (6) fleet size. Similarly, recreational 
operations permitted under part 108 may be appropriate for an exemption 
from such requirements given the size, weight, and range limits 
associated with those operations.
    TSA notes that an expanded security program applicability in the 
final rule could include any of a range of security program 
requirements, such as (for instance) requirements to appoint a Security 
Coordinator and to comply with security directives and emergency 
amendments to security programs. TSA anticipates developing model 
language appropriate to the different types of operations that will be 
permitted by the FAA under part 108. For example, under the existing 
regulatory requirements in 49 CFR 1544.101(g), TSA could require the 
following security measures as applicable:
     Preventing or deterring the carriage of any unauthorized 
weapons, explosives, incendiaries, and other destructive devices, 
items, or substances.
     Controlling cargo that it accepts for transport on an 
aircraft in a manner that:
    [cir] Prevents the carriage of any explosive, incendiary, and other 
destructive substance or item in cargo onboard an aircraft.
    [cir] Prevents unescorted access by persons other than an 
authorized aircraft operator employee or agent, or persons authorized 
by the airport operator or host government.
     Either verifying that the chain of custody measures for 
screened cargo are intact before loading such cargo on aircraft or 
ensuring that the cargo is re-screened in accordance with TSA's 
requirements.
     Designating a Security Coordinator at the corporate level 
that must serve as the operator's primary contact for security-related 
activities and communications with TSA.
     Implementing control functions with respect to each 
aircraft operation sufficient to:
    [cir] Prevent unauthorized access to areas controlled by the 
aircraft operator under an exclusive area agreement in accordance with 
49 CFR 1542.111 of this chapter.
    [cir] Prevent unauthorized access to each aircraft.
    [cir] Conduct a security inspection of each aircraft before placing 
it into operations if access has not been controlled in accordance with 
the aircraft operator security program and as otherwise required in the 
security program.
    [cir] Prevent unauthorized access to the operational area of the 
aircraft while loading or unloading cargo.
     Training individuals with security-related duties.
    Such requirements would also ensure UAS operators could avail 
themselves of existing procedures in TSA's regulations to modify their 
programs to appropriately address their operational environment while 
maintaining the level of security determined necessary by TSA.\116\
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    \116\ See, e.g. 49 CFR 1544.101.
---------------------------------------------------------------------------

    TSA anticipates that many of the larger operators that will seek 
approval to conduct part 108 operations may already be subject to a TSA 
security program. TSA would work with these operators to determine 
whether they need a new program or could modify their TSA-approved 
program. TSA has also historically adapted its requirements to meet the 
needs of smaller and seasonal operators and would continue to apply 
this flexibility for UAS operations approved under part 108, while also 
ensuring the security risks identified above are being appropriately 
addressed. TSA and FAA request comments on the proposed text and will 
work jointly on adjudicating comments relevant to TSA's proposed text 
in this NPRM. Because FAA is held to the final rule deadline 
established by E.O. 14307, TSA will have to meet that deadline as well 
in co-adjudicating the security-related comments and developing its 
relevant final rule sections.
    Per the discussion in the paragraph regarding package delivery 
operations in section VIII.A.3, the operator may be considered an ``air 
carrier'' engaged in ``air transportation'' and may require economic 
authority from the Office of the Secretary. See section VIII.A.3 for 
more discussions on this topic.
9. Hazardous Materials (Sec.  108.570)
    In Sec.  108.570, FAA proposes regulations to enable the safe 
transportation of hazardous materials under part 108 for certificated 
package delivery operations.\117\ Currently, the primary means for UAS 
operators to transport packages containing hazardous materials in air 
commerce is as a part 135 air carrier. Part 135 air carriers must have 
an FAA-approved hazardous materials training program and an FAA-
accepted hazardous materials manual. FAA issues each operator an 
Operations Specification permitting or prohibiting the acceptance, 
handling, and transportation of hazardous materials in commerce.\118\ 
These requirements apply regardless of whether a certificate holder 
transports hazardous materials or does not transport hazardous 
materials. Hazardous materials requirements are function-based and 
scale to the scope and complexity of a certificate holder's operation.
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    \117\ This rulemaking uses the definition of hazardous material 
as defined in 49 U.S.C. 5102(2) and 49 CFR 171.8.
    \118\ See 14 CFR part 135 subpart K (training program 
requirements) and 14 CFR 119.49(c)(12) (Operations Specifications). 
Parts 135.21 and 135.23 establish the requirements for hazardous 
materials manuals, including the exception that certificate holders 
who use only one pilot are not required to have a hazardous 
materials manual.
---------------------------------------------------------------------------

    Hazardous materials training requirements apply equally in UAS and 
non-UAS operations. Hazardous materials training requirements focus on

[[Page 38285]]

ground-based job functions associated with any item for transport on 
board an aircraft, as well as the personnel who perform or directly 
supervise these functions. These job functions include acceptance, 
rejection, handling, storage incidental to transport, packaging of 
company material (COMAT), and loading. Recurrent training would be 
required every two years.
    In 2017, FAA published AC 121-40, 14 CFR part 121 and Part 135 
Dangerous Goods Transportation Operations, to help support the 
hazardous materials manual and training program. Ultimately, AC 121-40 
promotes the safe and efficient transportation of hazardous materials. 
UAS applicants have successfully used this AC during the part 135 
precertification process and FAA continues to encourage UAS applicants 
and operators, including those in package delivery operations subject 
to this proposed rulemaking, to use this AC.
    To account for novel UAS-related considerations associated with 
certificate holder systems and the transportation of hazardous 
materials, FAA requests UAS certificate holder applicants seeking a 
will-carry authorization to conduct a safety risk assessment (SRA). An 
SRA, which is part of a SMS program, is a systematic process that 
involves identifying, analyzing, and controlling hazards and risks.
    The SRA determines what the potential risk mitigations should be to 
eliminate or control identified risk and promotes employee awareness 
regarding hazards, aids in identifying personnel and property at risk, 
determines existing control measures and their adequacy to prevent 
injuries, and prioritizes hazards and their control measures. An SRA 
ensures that the certificate holder properly assesses the additional 
risks that may be present with these UAS operations and that they 
develop appropriate risk mitigations to reduce the risk to an 
acceptable level.
    Ultimately, when issuing an operations specification for the 
carriage of hazardous materials, FAA limits UAS certificate holders to 
the types and amounts of hazardous materials specified in their 
accepted hazardous materials manual and approved hazardous materials 
training program. A UAS certificate holder may request a modification 
to the types and quantities of hazardous materials they are authorized 
to transport by submitting an updated hazardous materials training 
program and manual to receive an updated operations specification. This 
is different than a will-carry non-UAS certificate holders, as their 
operations specification only identify that they are authorized to 
accept, handle, and transport hazardous materials; it is not limited to 
a list of types and quantity of hazardous materials. Thus, in this 
preamble, FAA proposes that the authorization for a will-carry package 
delivery operation be aligned with current UAS certificate holder 
operations specifications in that the authorization will be limited to 
the type and quantity of hazardous materials that an operator can 
accept, handle, and transport.
    Any person \119\ (including a UAS certificate holder) who offers or 
transports hazardous materials in commerce must comply with the 
Hazardous Materials Regulations (HMR).\120\ This includes requirements 
such as training, loading, hazardous communication, packaging, and 
segregation. FAA notes that the HMR were originally promulgated for 
hazardous materials transportation inside of cargo compartments, 
typically on type-certificated aircraft. Therefore, the HMR does not 
necessarily account for the unique hazards associated with UAS 
transportation.\121\ FAA believes that this rulemaking and its 
certification and operational standards will be relevant to future HMR 
amendments specific to UAS.
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    \119\ The HMR defines a person in 49 CFR 171.8 as ``an 
individual, corporation, company, association, firm, partnership, 
society, joint stock company; or a government, Indian Tribe, or 
authority of a government or Tribe, that offers a hazardous material 
for transportation in commerce, transports a hazardous material to 
support a commercial enterprise, or designs, manufactures, 
fabricates, inspects, marks, maintains, reconditions, repairs, or 
tests a package, container, or packaging component that is 
represented, marked, certified, or sold as qualified for use in 
transporting hazardous material in commerce. This term does not 
include the United States Postal Service or, for purposes of 49 
U.S.C. 5123 and 5124, a department, agency, or instrumentality of 
the government.''
    \120\ 49 CFR parts 171-180.
    \121\ For example, the HMR generally require a hazardous 
materials package to be designed, constructed, maintained, filled, 
its contents so limited, and closed, so that under conditions 
normally incident to transportation there will be no identifiable 
release of hazardous materials into the environment, the 
effectiveness of the package will not be substantially reduced, and 
there will be no hazardous materials adhering to the outside of the 
package during transport; however, the conditions normally incident 
to transportation may not account for the unique characteristics of 
UAS transportation.
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    FAA notes that section 933 of the 2024 FAA Reauthorization Act 
requires the Secretary to use a risk-based approach to establish the 
operational requirements, standards, or special permits necessary to 
approve or authorize an air carrier to transport hazardous materials by 
unmanned aircraft systems providing common carriage under part 135 or 
under successor authorities, as applicable, based on the weight, 
amount, and type of hazardous material being transported and the 
characteristics of the operations subject to such requirements, 
standards, or special purposes UAS.
    In addition, paragraph (d) of section 933 requires the Secretary to 
make necessary conforming amendments to the HMR under parts 173 and 175 
to implement this risk-based approach to the carriage of hazardous 
materials via UAS by air carriers. Any comments to this NPRM involving 
revisions to the HMR, would have to be considered by PHMSA in a 
separate rulemaking. FAA seeks comments on the types of operational 
requirements and standards that could facilitate air carriers 
transporting hazardous materials by UAS in a risk-mitigated manner.
    Currently, most UAS certificate holders transport small packages. 
Most hazardous materials transported by these certificate holders are 
excepted from HMR requirements, under certain conditions, due to their 
perceived lower risk, especially when transported as a single 
consignment over a relatively short distance from certificate holder 
ground personnel. UAS operators who cannot meet the HMR requirements 
must apply for and obtain a special permit from PHMSA in accordance 
with 49 CFR part 107, subpart B. Special permit applications should 
demonstrate an equivalent level of safety to the requirements in the 
HMR for which the applicant is seeking relief. This is also true if a 
UAS operator wishes to obtain relief from other HMR requirements, such 
as shipping papers, pilot notifications, markings, labels, and 
packaging requirements. Currently, FAA is unaware of any special 
permits seeking relief from the HMR to better enable hazardous 
materials transport onboard UAS.
    Prior to the issuance of the first part 135 UAS certificate holder, 
14 CFR part 133 certificate holders were the only operators in the NAS 
transporting cargo, including hazardous materials, outside an airframe. 
When rotorcraft transport hazardous materials as external loads, the 
HMR requires the certificate holder to apply for and obtain an approval 
\122\ (i.e., a special permit) from the PHMSA Associate Administrator. 
In addition, part 133 certificate holders must also produce a plan for 
approval by their Principal Operations Inspector (POI) to mitigate the 
hazards created by such cargo. This requirement is supported by a 2009 
legal interpretation, FAA's Office

[[Page 38286]]

of the Chief Counsel stated that ``the transport of hazardous 
materials, especially forbidden hazardous materials, in external load 
operations creates `a hazard to persons or property on the surface.''
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    \122\ 49 CFR 175.9(a).
---------------------------------------------------------------------------

    Having an additional emphasis on safety evaluation is important 
when hazardous materials are transported outside of an airframe. 
However, FAA does not propose a similar mechanism in this preamble. 
Instead, as discussed elsewhere in this preamble, similar safety 
components can be accomplished with an SRA acceptable to the 
Administrator that provides, but does not require, coordination with 
another agency. This ultimately will make the authorization process 
more expeditious and less burdensome on the part 108 package delivery 
operator.
    Lastly, FAA notes that part 133 certificate holders are only 
authorized to drop cargo from above ground level in the event of an 
emergency; currently, there are no authorized transportation modes that 
allow dropping cargo from above ground level as a part of regular 
operations. As discussed elsewhere in this preamble, this is one reason 
why FAA is proposing to require a specific authorization when a will-
carry part 108 package delivery operator wishes to deliver or unload 
hazardous materials by releasing or dropping such materials from above 
ground level.
    With respect to small UAS operations,\123\ part 107 was promulgated 
in 2016; however, part 107 prohibits the carriage of hazardous 
materials via small UAS. This prohibition is not subject to waiver. In 
the part 107 final rule, FAA stated ``that the carriage of hazardous 
materials poses a higher level of risk than the carriage of other types 
of property. . . [and] the transport of hazardous materials, especially 
forbidden hazardous materials, in external load operations creates a 
hazard to persons or property in the surface.'' \124\ Therefore, FAA 
did not authorize the carriage of hazardous materials under part 107 
because part 107 did not include airworthiness requirements, and part 
107 operators are not required to have hazardous materials training 
programs or manuals. Part 107 operators who wish to transport hazardous 
materials must petition FAA for a regulatory exemption to Sec.  107.36.
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    \123\ 14 CFR 1.1 defines a small UAS as an unmanned aircraft 
weighing less than 55 pounds on takeoff, including everything that 
is on board or otherwise attached to the aircraft.
    \124\ 81 FR 42076.
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    Working from the baseline of the part 107 prohibition on the 
carriage of hazardous materials and part 135 air carrier certification 
requirements, the BVLOS ARC issued two hazardous materials-specific 
recommendations in their March 2022 Final Report. These recommendations 
include allowing UAS to transport hazardous materials and including an 
exception (for specific quantity and types) to all applicable HMR 
requirements. The rationale for this recommendation specified that the 
exception could match the types and quantities of hazardous materials 
provided in 49 CFR 175.10(a), which applies to hazardous materials 
carried by passengers or crewmembers in their carry on or checked 
baggage. However, FAA does not have the regulatory authority to revise 
the HMR; this authority is delegated to PHMSA.
    FAA acknowledges that the HMR have mostly been developed for 
traditional aircraft operations. The transportation of hazardous 
materials has almost exclusively been conducted in cargo compartments 
with well-defined capabilities and almost all passengers and crew fly 
on type certificated aircraft.\125\ Similarly, 14 CFR requires that 
trained crewmembers are onboard aircraft to detect, assess, and 
mitigate emergencies caused or aggravated by hazardous materials. This 
involves using onboard detection systems and what crewmembers, 
passengers, or supernumeraries see, hear, or smell onboard an aircraft. 
However, not all UAS are expected to be able to as readily detect or 
mitigate hazardous materials-related events, which is why it is 
necessary to ensure that any hazardous materials operations by UAS 
provide an equivalent level of safety as compared to transportation by 
traditional aircraft.
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    \125\ See 14 CFR 25.855 and 25.857 for current cargo and baggage 
compartment requirements on transport category aircraft.
---------------------------------------------------------------------------

    The HMR requirements were originally designed for manned 
operations. Therefore, UAS capabilities and operator-specific 
mitigations are relevant to the overall risk characterization of part 
108 hazardous materials transport. This is especially relevant given 
the wide array of operating environments and the means of transport and 
delivery currently used in UAS operations. The variety of these 
environments and means of transport/delivery are only expected to 
increase with part 108 operations. With payload capacity expected to 
increase significantly under part 108 and the types of hazardous 
materials also expected to grow beyond common consumer items, FAA does 
not believe it is in the interest of regulatory flexibility or safety 
to provide specific hazardous material types or quantity allowances for 
UAS operations. Instead, as noted elsewhere in this preamble, FAA 
believes that an operation-specific analysis should be conducted by the 
operator (via an SRA acceptable to the Administrator) to ensure that 
all appropriate hazards are considered and addressed to ensure the safe 
transportation of hazardous materials in commerce. However, FAA is open 
to future regulatory development and industry partnerships to develop 
broader-based performance-based approaches proportionate to the risk.
i. FAA Authorization To Permit or Prohibit Accepting, Handling, and 
Transporting of Hazardous Materials
    FAA proposes to enable part 108 hazardous materials transportation 
in a safe and efficient manner. Currently, FAA lacks sufficient data to 
conclude what types of hazardous materials should be authorized for 
package delivery transportation for all part 108 operations. As such, 
the most efficient and effective way to authorize this transportation 
is to individually assess the risks for the types and amounts of 
hazardous materials that each part 108 certificated operator wants to 
transport in the context of their overall operation and system design. 
Thus, as detailed in this preamble, FAA proposes that when a part 108 
package delivery certificated operator wants to transport hazardous 
materials, they will be able to obtain a will-carry authorization by 
having an accepted hazardous materials manual, approved hazardous 
materials training program, and SRA acceptable to the Administrator. 
The specific proposal is detailed further in this preamble.
    As noted in the aircraft airworthiness section, proposed part 108 
aircraft would not be type-certificated. Meanwhile, the HMR are 
promulgated on the understanding that hazardous materials, in air mode, 
are transported on type-certificated aircraft intended to protect crew, 
passengers, and supernumeraries onboard. If there are releases of 
hazardous materials onboard type certificated aircraft, those releases 
are usually confined to aircraft cargo compartments; trained crew or 
other ground personnel would mitigate the release.
    Proposed part 108, as an enabling regulation, is intended to 
establish a safety framework that can be tailored to any individual 
part 108 package delivery certificated operation--from small and simple 
to large and complex.
    FAA proposes enabling regulations to allow for the transportation 
of hazardous materials under part 108 for

[[Page 38287]]

package delivery certificated operations. Hazardous materials cannot be 
authorized merely as a function of hazard class, division, packaging 
group, or package quantity, especially as part 108 proposes to utilize 
non-type certificated UAS and given the wide array of aircraft, 
operators, and operations within the proposed part 108 domain. 
Therefore, these proposed enabling regulations scale to all part 108 
package delivery service certificated operators.
    FAA has previously stated that a ``certificate holder's hazardous 
materials program constitutes the foundation for safely transporting 
dangerous goods by air.'' \126\ Current hazardous materials 
requirements, including operations specification, hazardous materials 
manuals, and hazardous materials training programs, have been proven to 
readily scale to all types of operators, including UAS certificate 
holders. These requirements are an efficient means of ensuring 
personnel are trained in the functions they are performing or directly 
supervising; therefore, FAA proposes similar requirements for part 108 
certificate holders transporting hazardous materials in package 
delivery certificated operations.
---------------------------------------------------------------------------

    \126\ FAA, AC 121-40, 14 CFR part 121 and part 135 Dangerous 
Goods Transportation Operations (Dec. 13, 2017).
---------------------------------------------------------------------------

    Proposed Sec.  108.570 regulates the transport of hazardous 
materials. Package delivery operators, regardless of whether they 
transport hazardous materials, must comply with the requirements by 
creating safety policies, implementing procedures and programs for 
personnel training, job function assignments and management roles, 
handling and storage of hazardous materials, and recordkeeping. To 
ensure an adequate level of safety by implementing requirements similar 
to current part 135, FAA is taking an approach based on two transport 
categories of hazardous materials: will-carry and will-not-carry. Part 
108 package delivery certificated operators, regardless of their will 
or will-not carry status, will need to be able to identify hazardous 
materials based on hazard communication information and recognize that 
they cannot transport hazardous materials without proper FAA 
authorization. Therefore, FAA proposes that both will-carry and will-
not carry operators would need accepted hazardous materials procedures 
and information (often colloquially referred to as an accepted 
hazardous materials manual) and an approved hazardous materials 
training program. However, will-carry operations would also need an SRA 
acceptable to the Administrator to address the risk associated with the 
transportation of hazardous materials.
    These proposed requirements increase the level of safety to enable 
the safe transportation of hazardous materials. FAA notes that the type 
and amount of hazardous materials authorized will be specific to the 
aircraft, operation, operating environment, and other relevant 
considerations. Therefore, FAA is not proposing a blanket prohibition 
on the carriage of hazardous materials analogous to Sec.  107.36 for 
certificated package delivery operators. However, in the future, FAA 
may propose data-informed, risk-based regulatory carve-outs for part 
108 operators regardless of their aircraft, operation, or operating 
environment. As new operations are established and more data is 
collected, such an approach may be appropriate. As noted above, FAA is 
also open to supporting the development of performance-based standards. 
Currently, with the small numbers of UAS package delivery operators and 
operations, limited data, and many unique factors relevant to each 
operator, FAA believes that proposed requirements serve as an efficient 
means to enable the transport of hazardous materials.
    FAA proposes in Sec.  108.570(a) that certificated package delivery 
operators seeking authorization to transport packages in air commerce 
would need to obtain a will-carry or will-not-carry authorization from 
FAA, which permits or prohibits the accepting, handling, and 
transporting of hazardous materials. All required documents must be 
submitted to FAA when obtaining the authorization. Specifically, FAA 
proposes that to obtain a will-carry authorization, a certificated 
package delivery operator must have an accepted hazardous material 
procedures and instructions, an approved hazardous materials training 
program, and an SRA acceptable to the Administrator. To obtain a will-
not-carry authorization, a certificated package delivery operator must 
have an approved hazardous materials training program and an accepted 
hazardous materials manual. When issuing the authorization, FAA will 
review the submitted materials to ensure the applicant achieves 
regulatory compliance, has properly assessed the unique UAS-related 
risks associated with their operations, and has developed appropriate 
risk mitigations to reduce the risk to an acceptable level.
    FAA believes that the hazardous materials manual, training program, 
and SRA are critical to designing a safety system that supports the 
safe transportation of hazardous materials in the NAS. Hazardous 
materials manual and training program requirements are established 
requirements for current part 135 operations. Transportation of 
hazardous materials under proposed part 108 certificated package 
delivery operations are similar to part 135 operations. On-ground 
hazardous materials requirements apply consistently, no matter the type 
of transport vehicle; thus, as detailed in this preamble, FAA has 
concluded that the hazardous materials manual and training program 
requirements should also apply to part 108 certificated package 
delivery operations. However, part 108 UA differ from traditional part 
135 aircraft, with additional risks to carrying hazardous materials 
because of UAS operations. Therefore, FAA is proposing that an 
additional analysis (i.e., SRA) must be conducted to ensure that the 
operations account for new hazards and risks to a specific operation. 
These proposed requirements are further detailed below.
    Lastly, as noted in the discussion of HMR requirements, all 
operators who transport hazardous materials in commerce are subject to 
the HMR. While a will-carry authorization allows hazardous materials to 
be accepted, handled, and transported by the operator, the regulatory 
requirements for these functions are detailed in the HMR; the operator 
must ensure they also comply with these requirements. For example, 49 
CFR 175.30 of the HMR requires the operators to inspect shipments. 
However, if an operator cannot comply with any of the HMR requirements, 
they may apply for and obtain a Special Permit from PHMSA (see part 
107, subpart B); the will-carry authorization does not replace or 
exempt an operator from obtaining a special permit from PHMSA when the 
operator cannot perform any function not authorized in the HMR.
ii. Approved Hazardous Materials Training Program
    FAA proposes that certificated package delivery operators must have 
an approved hazardous materials training program. This proposed 
requirement is like the current approved hazardous materials training 
programs for part 135 certificate holders.
    In the final rule that established part 135 hazardous materials 
training program requirements (2120-AG75; 70 FR 58795), FAA stated:
    A hazardous materials training requirement is a critical step 
toward reducing the number of improperly prepared or undeclared 
shipments. These requirements establish mandatory hazardous materials 
training programs

[[Page 38288]]

with uniform standards.\127\ Hazardous materials training programs will 
ensure that company personnel are trained to comply with the 
requirements of the HMR, which they perform or directly supervise.\128\ 
In addition, each certificate holder must train each crewmember and 
person performing or directly supervising any of the following job 
functions involving any item for transport on board an aircraft: \129\
---------------------------------------------------------------------------

    \127\ 70 FR 58799.
    \128\ 70 FR 58813.
    \129\ 70 FR 58797.
---------------------------------------------------------------------------

     Acceptance;
     Rejection;
     Handling;
     Storage incidental to transport;
     Packaging of company materials; or
    Loading.
    Ultimately, these requirements ensure that personnel who are not 
authorized to transport hazardous materials do not inadvertently do so. 
Therefore, the training program for will-not-carry certificated package 
delivery operators ensures that personnel are trained to recognize 
hazardous materials packages, refuse them for acceptance, submit 
incident reports, and submit discrepancy reports, as appropriate. There 
is a significant safety benefit to the overall NAS in ensuring this 
training is offered effectively. Hazardous materials, including COMAT, 
can be offered for transportation by the UAS operator, and operator 
personnel must comply with the appropriate regulations and operating 
procedures. These training requirements also apply to will-carry 
certificated package delivery operators and ensure that their personnel 
know the appropriate requirements for their operations (e.g., what 
packages to accept or reject). This means that the operator can scale 
the overall scope of the training requirement based on their hazardous 
materials operations.
    Once undeclared hazardous materials are offered into 
transportation, it can be very difficult for downstream operators to 
know there may be improperly offered hazardous materials in their 
system. FAA notes that the HMR requires hazardous materials training in 
accordance with 49 CFR part 172, subpart H; however, this training only 
applies to hazmat employees.\130\ Therefore, will-not-carry 
certificated package delivery operations personnel are not subject to 
the HMR training requirements. However, they are subject to FAA-
approved hazardous materials training requirements. In addition, FAA 
continues to believe that the purpose of hazardous materials training, 
as described, provides a safety benefit. For these reasons, FAA 
proposes that certificated package delivery operators have an approved 
hazardous materials training program.
---------------------------------------------------------------------------

    \130\ 49 CFR 171.8 defines a hazmat employee as a person who is 
(i) employed on a full-time, part-time, or temporary basis by a 
hazmat employer and who in the course of such full-time, part-time 
or temporary employment directly affects hazardous materials 
transportation safety; (ii) self-employed (including an owner-
operator of a motor vehicle, vessel, or aircraft) transporting 
hazardous materials in commerce who in the course of such self-
employment directly affects hazardous materials transportation 
safety; (iii) a railroad signalman; or (iv) a railroad maintenance-
of-way employee. Additionally, this term includes an individual, 
employed on a full-time, part-time, or temporary basis by a hazmat 
employer, or who is self-employed, who during the course of 
employment: (i) loads, unloads, or handles hazardous materials; (ii) 
designs, manufactures, fabricates, inspects, marks, maintains, 
reconditions, repairs, or tests a package, container or packaging 
component that is represented, marked, certified, or sold as 
qualified for use in transporting hazardous material in commerce; 
(iii) prepares hazardous materials for transportation; (iv) is 
responsible for safety of transporting hazardous materials; and (v) 
operates a vehicle used to transport hazardous materials.
---------------------------------------------------------------------------

    In addition, FAA also proposes various exceptions to certain 
scenarios for the hazardous materials training requirement, similar to 
those authorized for part 135 certificate holders, to ensure that part 
108 certificated package delivery operators are afforded the same 
regulatory flexibility as part 135 certificate holders. This includes 
(1) flexibility in the period between a person's hire date or start of 
a new job function that requires training and when training is 
completed, (2) allowance for differences training, and (3) flexibility 
in when recurrent training must be completed.
    FAA proposes to allow a person to perform a Sec.  108.570(b) job 
function between their hire date or start of a related job function and 
completion of training for that function under the supervision of 
another trained employee. FAA recognizes that a certain degree of 
flexibility is required to ensure continuous package delivery 
operations of hazardous materials between when a person is hired or 
starts a related job function and when they complete FAA-approved 
training program. This period can be as long as 30 days. Therefore, in 
Sec.  108.570(h), FAA proposes to allow a person to perform a Sec.  
108.570(b) job function under the direct visual supervision of a person 
who is authorized by the operator to supervise that person and who has 
successfully completed the operator's FAA-approved initial or recurrent 
training program within the past 24 months. This exception is only 
applicable from their hire date or start of a new job function up until 
30 days, when training must be completed. In addition, in Sec.  
108.570(i), FAA proposes that any operator using this exception must 
retain a specific record for that person taking the exception.
    In Sec.  108.570(j), FAA proposes to allow an operator who uses or 
assigns a person to perform or directly supervise one of the Sec.  
108.570(b) job functions to only train that person in its own policies 
and procedures regarding those job functions when that person also 
performs or directly supervises the same job function for another 
package delivery operator, part 121 certificate holder, or part 135 
certificate holder. This exception is sometimes also referred to as 
``hazardous materials differences training.'' This exception is only 
authorized when (1) the operator receives written verification that the 
person has satisfactorily completed hazardous materials training for 
the specific job function and (2) the package delivery operator, part 
121 certificate holder, or part 135 certificate holder who trained the 
person has the same authorization or equivalent operations 
specifications regarding the acceptance, handling, and transport of 
hazardous materials as the operator using this exception. FAA proposes 
this exception because, without this exception, a person who performs a 
similar job function for multiple operators or who changes employers 
would be required to complete hazardous materials training for each 
operator. FAA acknowledges that an operator's FAA-approved training 
program may be similar to another operator's FAA-approved training 
program when the two operators are authorized to conduct similar 
hazardous materials operations (i.e., will-carry operator compared to 
another will-carry operator). Therefore, by proposing this exception to 
allow a part 108 package delivery operator to provide only differences 
training when the person has successfully completed a similar FAA-
approved hazardous materials training program, FAA eliminates a 
potentially overly burdensome requirement.
    Lastly, in proposed Sec.  108.570(k), FAA provides some flexibility 
in when recurrent training is required. Recurrent training would be 
required every 24 months. However, to allow flexibility in operations 
FAA proposes that if the training is completed in the month before or 
after recurrent training is required, then the training is considered 
complete in the month that training was originally due. However, if a 
person completes recurrent training earlier than the month before it is 
due, then the earlier month becomes the new training anniversary month.

[[Page 38289]]

iii. Accepted Hazardous Materials Procedures and Information
    FAA proposes that certificated package delivery operators 
transporting packages must have accepted hazardous materials procedures 
and information (often referred to as an accepted hazardous materials 
manual). This proposed requirement is like the current accepted 
hazardous materials manuals for part 135 certificate holders.
    As with the approved hazardous materials training program, FAA has 
concluded that the accepted hazardous materials procedures and 
information requirements have proven to ensure that all operator 
personnel understand and follow procedures to ensure appropriate 
compliance with hazardous materials acceptance (i.e., that will-carry 
operators appropriately accept hazardous materials, and that will-not-
carry operators reject hazardous materials). Therefore, FAA proposes 
that these requirements apply to certificated package delivery 
operators.
    FAA notes that certificated package delivery operators may have a 
combined hazardous materials training program and hazardous materials 
procedures and information. Likewise, the hazardous materials 
procedures and information and hazardous materials training program, or 
portions thereof, may be integrated into General Operations Manuals, 
General Maintenance Manuals, or other relevant manuals. Furthermore, 
FAA notes that the procedures and information requirement does not 
apply to special aircraft operations, such as agricultural operations, 
transporting hazardous materials in accordance with 49 CFR 
175.9(b).\131\
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    \131\ Nothing in this section is intended to remove the manual 
content required as a condition of 49 CFR 175.9(b)(6) when hazardous 
materials are to be dispensed or expended during flight for weather 
control, environmental restoration or protection, forest 
preservation and protection, flood control, avalanche control, 
landslide clearance, or ice jam control purposes.
---------------------------------------------------------------------------

iv. SRA Acceptable to the Administrator
    FAA is also proposing that certificated package delivery operators 
transporting hazardous materials (i.e., will-carry operators) submit an 
SRA acceptable to the Administrator as a part of their authorization 
request. This SRA would need to be inclusive of risks to people and 
property on the ground resulting from the carriage of hazardous 
materials.
    An SRA is not a requirement for part 135 operators. However, 
because of the unique and novel characteristics of part 108 UAS 
transportation, the proposed hazardous materials training program and 
hazardous materials procedures and information requirements, coupled 
with HMR compliance, may not be sufficient to ensure that there is an 
acceptable level of safety in the NAS or for people and property on the 
ground. For example, shippers may not be aware of the transportation 
conditions associated with UAS package delivery operations--or even 
that their package will be transported by UAS. Conditions normally 
associated with the traditional air cargo environment may not be normal 
compared to individual operations in the UAS domain. A package attached 
to the outside of a UAS airframe can be subject to weather and 
atmospheric conditions such as precipitation, temperature, humidity, 
and wind/airflow not necessarily experienced inside an aircraft, unit 
load device, warehouse, or sort facility.
    An SRA would account for many of these gaps because the 
certificated package delivery operator will consider the risks 
associated with hazardous materials transportation in their operations. 
In addition, the SRA serves as a critical link between the 14 CFR and 
49 CFR regulatory frameworks and the certificated package delivery 
operator's unique operating environment. Therefore, FAA proposes to 
require certificated package delivery operators transporting hazardous 
materials to submit an SRA acceptable to FAA when seeking a will-carry 
authorization.
    The SRA should properly assess the unique UAS-related risks 
associated with the certificated package delivery hazardous materials 
operations and that they have developed appropriate risk mitigations to 
reduce the risk to an acceptable level. Furthermore, an SRA should have 
appropriate technical and scientific analysis to explain and address 
these risks.
    FAA notes that certificated package delivery operations will vary 
depending on the types and quantities of hazardous materials being 
transported per flight and operations. In addition, FAA lacks the data 
to know the impact of different quantities and types of hazardous 
materials on various aircraft systems. Therefore, it is imperative that 
the operator, who knows their system and operations the best, conduct 
the appropriate analysis to understand the risks they are introducing 
into the NAS. In many cases, the safety of the operation will depend on 
what the UAS is flying over, supplemental aircraft or operator carrier 
mitigations, and the nature of the hazardous materials involved. For 
example, aircraft systems (e.g., parachutes), operational 
considerations (e.g., routing relative to people and property on the 
ground), localized emergency response capability, the nature and 
quantity of hazardous materials onboard, and novel mitigations to 
contain hazardous materials (e.g., aircraft or operator supplemental 
packaging or containers) are just some of the unique variables the SRA 
may cover. For these reasons, FAA proposes to require the submission of 
an SRA acceptable to FAA for a certificated package delivery operator 
seeking a will-carry authorization to transport hazardous materials.
    FAA has developed draft AC 108-XX, 14 CFR part 108 Unmanned 
Aircraft systems (UAS) Carrying or Dropping Dangerous Goods Safety Risk 
Assessment, to support the development of the SRA acceptable to the 
Administrator, which is included in the docket. This AC focuses on the 
requirements and considerations that a certificated package delivery 
operator should make in developing an SRA acceptable to the 
Administrator. FAA requests comment on this draft AC and will issue a 
final version to coincide with the final rule's publication.
v. Authorization To Deliver or Unload Hazardous Materials by Releasing 
or Dropping Such Materials Above Ground Level
    In addition to a will-carry authorization, FAA proposes that will-
carry certificated package delivery operators seeking authorization to 
intentionally release or drop hazardous materials as a form of delivery 
must obtain an additional FAA authorization allowing them to do so. To 
apply for and obtain this authorization, FAA proposes that an operator 
would need to have a hazardous materials training program and hazardous 
materials procedures and instructions and would need to submit an SRA 
acceptable to FAA to ensure they account for the unique characteristics 
for releasing or dropping hazardous materials above ground level.
    Intentionally dropping hazardous materials as a part of routine 
operations differs from the traditional method for unloading hazardous 
materials from an aircraft. Before the development of UAS, except for 
special aircraft operations in accordance with 49 CFR 175.9(b), 
unloading hazardous materials from an aircraft has traditionally been 
conducted by personnel physically removing the package from the 
aircraft. However, UAS provides operational methods of unloading 
packages, including hazardous materials packages, by releasing or 
dropping from above ground level.

[[Page 38290]]

    As these unloading methods are not traditional, UAS operators must 
consider additional risks to ensure their operations are conducted 
safely. These risks are not limited only to people and property on the 
ground at the time of delivery, but to people handling the package, 
such as a subsequent traditional air carrier. These risks are often 
distinct from those identified in the considerations to accept, handle, 
load, or transport the hazardous material in flight, which are proposed 
in the will-carry authorization. Therefore, FAA believes that a will-
carry certificated package delivery operator should consider the unique 
circumstances for intentionally dropping or releasing a package and 
incorporate these considerations in their hazardous materials training 
program, hazardous materials procedures and instructions, and SRA, as 
proposed in obtaining their will-carry authorization. Specifically, FAA 
proposes that certificated package delivery operators seeking this 
authorization must ensure that their hazardous material training 
program, hazardous materials procedures and instructions, and SRA 
acceptable to the administrator be inclusive of risks to people and 
property on the ground resulting from intentionally dropping or 
releasing hazardous materials. The operators should also consider the 
risks to other people who may subsequently transport or handle the 
dropped package, such as traditional air carriers, ground 
transportation carriers, and recipients. These considerations may be 
incorporated in the hazardous materials training program, hazardous 
materials procedures and instructions, and SRA acceptable to the 
Administrator used to meet the will-carry authorization requirements, 
as new versions for this authorization requirement, or a combination of 
the two.
    In addition, FAA believes that the SRA should include technical 
information proportionate to the level of risk for each hazardous 
material being dropped or released above ground level. The certificated 
package delivery operator should fully understand the identified 
hazards and develop appropriate risk mitigations. For additional 
details on developing an SRA acceptable to the Administrator, see the 
discussion on the draft AC in the SRA Acceptable to the Administrator 
section.
    FAA notes that this authorization would not be required for special 
aircraft operations, such as agricultural operations, to release 
hazardous materials during flight when operating in accordance with 49 
CFR 175.9(b).
10. Agricultural Operations (Sec.  108.575)
    Currently, agricultural operations using UA are conducted under 14 
CFR part 137, which provides rules for conducting agricultural aircraft 
operations. However, part 137 was written for traditional aircraft, 
rather than UA. As such, there are provisions in part 137 that cannot 
be met by UA operators. FAA has been issuing part 137 exemptions for 
operators conducting agricultural operations with UA. The proposed 
agricultural operations certificate will create regulations related to 
agricultural aircraft operations that are specifically tailored to the 
needs and risks of part 108 UAS.
    In Sec.  108.575(a), FAA proposes that an operator conducting 
agricultural operations with a part 108 UA that does not comply with 
the requirements for agricultural permitted operations must obtain an 
agricultural operating certificate. As described below, FAA believes 
operations outside of the scope of an operating permit are of a higher 
risk and would therefore benefit by the risk mitigations associated 
with obtaining an operator certificate. FAA uses the same definition of 
agricultural operations as is used in part 137.
    In Sec.  108.575(b) and (c), FAA proposes to prohibit dispensing 
operations directly over people and to limit operations to Category 3 
population density areas or lower, as described in section VI.H. These 
proposed requirements would be consistent with existing regulatory and 
practical considerations for agricultural operations. Dispensing of 
economic poisons and any other substance intended for treatment, 
nourishment, propagation, pest control, preservation and pest control 
may be hazardous to persons if applied directly overhead. FAA must 
ensure the protection of persons not only in the air but on the ground, 
and therefore would prohibit dispensing operations directly over 
people, unless authorized by FAA. In addition, both manned and unmanned 
agricultural operations typically take place in sparsely populated 
areas over non-populated areas, operating close to the ground while 
dispensing and close to structures. Should a UA collide with the ground 
or a structure, persons may become vulnerable to the associated hazard 
from material carried on the aircraft. However, by limiting an 
agricultural operation to an area that is less likely to have persons 
nearby, the vulnerability to persons greatly decreases. Unlike 
agricultural operations conducted under a permit, which are limited to 
population densities of Category 1, certificated agricultural 
operations would be limited to Category 3 population densities as the 
certification process enhances standardization and increased 
operational reliability through accepted training and operational 
manuals as well as ongoing FAA oversight.
    FAA recognizes that individual states, counties, townships etc. may 
have specific limitations or restrictions regarding agricultural 
spraying that may be more restrictive than what is proposed in this 
preamble. To that end, FAA proposes in Sec.  108.575(e) that 
certificated agricultural operators may not dispense, or cause to be 
dispensed from a UA, economic poisons for use other than for which it 
is registered, contrary to any safety instructions or limitations as 
described by the product label, or in violation of any law or 
regulation of the United States. In addition, FAA proposes that 
certificated agricultural operations comply with all safety 
instructions or limitations on the product label as well as any 
applicable laws or regulations of the United States.
    In Sec.  108.575(f) FAA proposes the same relief from the 
requirements in paragraph (e) as currently allowed under part 137 for 
operators dispensing economic poisons for experimental purposes when 
under the supervision of a Federal or State agency authorized by law to 
conduct research in the field of economic poisons or when operating 
under a permit U.S. Department of Agriculture issued pursuant to the 
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136).
    In proposed Sec.  108.575(g) FAA would require that operators 
conducting operations under an agricultural part 108 operating 
certificate must have and keep current a comprehensive training program 
that is tailored for their proposed operation. The training program 
would need to contain, at a minimum, knowledge requirements consisting 
of steps to be taken before starting operations, including survey of 
the area to be worked, safe handling and storage of and the proper 
disposal of used containers for those, the general effects of and 
agricultural chemicals on plants, animals, and persons, with emphasis 
on those normally used in the areas of intended operations; and the 
precautions to be observed in using poisons and chemicals, primary 
symptoms of poisoning of persons from, the appropriate emergency 
measures to be taken, and the location of poison control centers, 
performance capabilities and operating limitations of the aircraft to 
be used and, safe flight and application procedures. FAA believes that 
by requiring a training

[[Page 38291]]

program with the included above areas tailored to their operation, any 
additional risk associated with an individual operation would be 
further reduced.
    Finally, FAA is proposing in Sec.  108.575(h) that no person may 
supervise or participate in an agricultural unmanned aircraft operation 
unless they have completed the operator's training program as required 
in Sec.  108.575(g). As further described in section VII.A of this 
preamble, FAA is not requiring airman certification for operations 
conducted herein. Therefore, FAA would rely on the knowledge and skill 
requirements discussed in section VII.C to ensure that adequate 
knowledge and skill has been obtained prior to operation. Completion of 
the training program should be comprehensive, and failure to achieve a 
reasonable grade or average on the training program materials would 
likely not demonstrate sufficient skill to conduct safe operations.
11. Aerial Surveying Operations (Sec.  108.580)
    As described in section VIII.B.8, FAA recognizes the value of UA 
operations conducted for the purposes of photography, videography, 
mapping, inspecting, or patrolling. However, aerial surveying 
operations with an operating permit would be limited to an aircraft 
weight of no more than 110 pounds, a population density of Category 3 
or lower, and fewer than 25 active aircraft.
    FAA recognizes that operators may want to operate with UA for 
aerial surveying operations weighing more than 110 pounds, with a 
greater number of active aircraft, or in an area with a greater 
population density than what is allowed under permitted operations. To 
ensure these operations may still be safely conducted, FAA finds that 
risk is best managed through the standardization and continued 
oversight of the certification process. With the advancement of 
technology and UA design, FAA anticipates many variants, sizes, and 
weights of UA performing aerial surveying functions, and FAA proposes 
that the certification process could provide the appropriate safeguards 
to facilitate those operations. FAA also understands that operators for 
aerial surveying purposes may maintain 25 or more active UA for their 
operation, and therefore does not propose a limit on the number of 
active aircraft an operator may hold when operating under a certificate 
that permits aerial surveying operations.
    FAA proposes to enable a pathway for aerial surveying operations to 
be conducted in higher than Category 3 population densities through the 
certification process. However, as operating weight increases, so does 
the overall risk to people on the ground. FAA therefore proposes in 
Sec.  108.580(b) that aerial survey operations conducted with a UA 
weighing more than 110 pounds be limited to Category 4 population 
density areas, or lower. FAA believes that greater risk of higher 
weight UA, increased number of active aircraft, and higher population 
density category operations, can be mitigated by the certification 
process, which requires FAA evaluation, observations, and continued 
surveillance. An operating certificate adds various levels of risk 
mitigation such as FAA accepted training programs, and continued FAA 
oversight.
12. Civic Interest Operations (Sec.  108.585)
    As described in section VIII.B.7, civic interest operations are 
operations conducted under contract for government agencies, law 
enforcement, and public safety entities using UA for various purposes, 
including forest and wildlife conservation (including wildfire 
recovery, wildlife conservation, and tracking climate change) and 
operations in support of public safety (including fire, accident, and 
disaster response). In addition, FAA proposes that, when operating in 
support of a government entity, the operator must coordinate and 
deconflict operations with the law enforcement or government emergency 
management agency responsible for the incident response in advance and 
throughout the duration of the operation.
    Whereas permitted operations for civic interest are limited to 
fewer than 25 active aircraft, FAA proposes that operations conducted 
under a civic interest operating certificate would not be limited to a 
specific number of UA. Management oversight of an operation would be 
accomplished through an operating certification process, which ensures 
continued FAA oversight and would reduce risk as the entire operation 
is under initial and continued scrutiny of FAA by virtue of the 
operating certificate.
    As with permitted operations, FAA proposes in Sec.  108.585(b) that 
civic interest operations must be conducted by an entity contracted to 
a Federal, State, local, Tribal, or territorial government to be 
considered civic interest. These operations would be civil operations, 
and would not fall under the public aircraft operations statute, as 
further discussed in section VIII.B.7.
    To further mitigate the risk associated with operations with these 
larger UA, FAA proposes in Sec.  108.585(c) that operations conducted 
with UA with a gross weight of more than 110 pounds would be limited to 
Category 4 population density areas or lower. Operations within a 
population density of greater than Category 4 greatly increases the 
risk to persons on the ground as the area of operation becomes more 
saturated with people. FAA does not anticipate a need for civic 
interest certificated operation with a UA weighing more than 110 pounds 
to occur within greater than Category 4 population densities. However, 
this requirement would be subject to relief per the Administrator's 
authorization, should an operator make a proposal that would provide 
sufficient assurance that these operations could be safely conducted 
over a higher population density. Operations of aircraft weighing 110 
pounds or less could operate in any population density. Notwithstanding 
the population density restrictions of this section and proposed Sec.  
108.185, FAA would allow operations to be conducted over any population 
density to the extent necessary to safeguard lives in imminent threat. 
Given the potential nature of these types of operations, FAA believes 
that an incremental increase in ground risk would be justified in life-
saving operations.

IX. Maintenance and Alterations (Subpart F)

A. Applicability

    In subpart F, FAA proposes rules for the maintenance and 
alterations of UAS operating under this part. This covers the persons 
authorized to perform maintenance and alterations, the performance of 
maintenance on the UAS, life-limited parts, batteries, repairs and 
alterations, and operations after maintenance or alterations.
    This FAA proposes to exclude from the applicability of this subpart 
the maintenance or alterations of automated data service provider 
equipment approved under part 146 of this chapter, the maintenance or 
alteration of a UA and its AE that is operated and maintained in 
accordance with parts 43 and 91 of this chapter, and the maintenance or 
alterations of AE not under the direct control of the operator.

B. Persons Authorized To Perform Maintenance (Sec.  108.605)

    Part 107 does not prescribe any maintenance requirements; however, 
the operational framework for proposed part 108 is predicated on the 
reliability

[[Page 38292]]

of the UAS. Moreover, UAS operating under this part would be more 
technologically complex than most UAS operating under part 107. Because 
proposed part 108 would be operationally expansive by allowing larger 
UA to operate BVLOS in the NAS, UA reliability is a paramount risk 
mitigation. Having a structured system of maintenance ensures that the 
UAS is maintained to a standard that enhances its reliable and safe 
operation. Accordingly, as stated in proposed Sec.  108.600(a), subpart 
F prescribes the maintenance and alterations requirements for UAS 
operating under part 108.
    FAA recognizes that the UAS may include AE that are not under the 
direct control of the operator, and FAA does not intend to make 
operators responsible for the maintenance of those AE elements. It is 
anticipated that most, if not all, of the AE outside the control of the 
operator are likely under the control of an automated data service 
provider, who would be responsible for maintaining the AE they use to 
provide services under proposed part 146. In addition, there may be 
other AE not under the direct control of the operator that is not 
addressed in the manufacturer's maintenance instructions in proposed 
Sec.  108.720, such as the infrastructure provided by a cellular 
company providing data connectivity to the aircraft in flight or 
network servers provided by an online hosting platform that is 
providing the flight control software platform. It would be 
unreasonable to leverage an additional maintenance requirement on the 
UA operator to maintain that equipment. Therefore, the proposed 
maintenance requirements do not include requirements for the operator 
to maintain AE not under the operator's direct control. Furthermore, 
the maintenance and alterations for UAS that are operated and 
maintained in accordance with parts 43 and 91 of this chapter would be 
governed under those rule parts, and the requirements of part 108 
likewise would not apply.

C. Persons Performing Maintenance and Alterations (Sec.  108.605)

    Similar to the approach for operations personnel, FAA is not 
proposing certification requirements for maintenance personnel for UAS 
operating under this part for numerous reasons. The lower risk nature 
of the operations, the variability of aircraft design and 
characteristics in the industry, the move to design that is more 
heavily dependent on automation and software programming, and the rapid 
change and innovation in this field would all make it difficult for FAA 
to create a one-size-fits-all knowledge and skills certification 
process for those performing maintenance and alterations on these UAS. 
Though this proposal would not require certification, FAA recognizes 
that properly trained and qualified personnel that perform maintenance 
and alterations are vital to ensuring the continued airworthiness of 
the aircraft. Therefore, in Sec.  108.605, FAA proposes requiring the 
operator to ensure that personnel performing maintenance and 
alterations on the operator's UAS are qualified, through basic skills 
and knowledge obtained in accordance with the training requirements in 
Sec.  108.315, to perform the assigned maintenance task or alteration 
using the manufacturer's maintenance instructions. In addition to being 
qualified, FAA proposes that the operator must also specifically 
authorize a person to perform the maintenance or alterations on the 
aircraft.
    FAA considered creating a new type of repairman certificate 
specifically for UAS, but for the reasons stated above found that this 
would be unnecessary and impractical at this time. As discussed in 
section VII, FAA has determined that airman certification is not 
necessary for relevant personnel conducting operations under the 
provisions of part 108. As with the proposed personnel requirements, 
FAA proposes that responsibility for maintenance rests with the 
operator, which in most cases would be a company.

D. Unmanned Aircraft Maintenance (Sec.  108.610)

    Under proposed Sec.  108.610(a), the operator must ensure its 
employees who perform maintenance on a UAS use the methods, techniques, 
and practices prescribed in the UAS manufacturer's maintenance 
instructions that are required by Sec.  108.720(a). Further, the 
operator is obligated to ensure the UAS is in a condition for safe 
operation. In addition, as stated in proposed Sec.  108.610(b), the 
operator would need to inspect the UAS in accordance with the 
manufacturer's inspection criteria found in the manufacturer's 
instructions.
    The person performing maintenance would be required to use the 
methods, techniques, and practices prescribed in the manufacturer's 
maintenance instructions provided at the time of purchase of the UAS by 
the operator. Though this rule would not require the person performing 
maintenance to hold a mechanic or repairman certificate, it is 
incumbent on the operator to ensure that maintenance occurs in a manner 
that keeps the UAS in a condition for safe operation under part 108.
    The operator must also have the UAS inspected according to the 
requirements in the maintenance instructions. Improperly performed 
maintenance or lack of inspections at the required intervals could 
result in loss of control and a subsequent crash of the UA.
    FAA has long relied on maintenance providers' compliance with the 
information provided by the aircraft manufacturer to ensure aircraft 
remain in a condition for safe operation. For UAS operated under this 
part, FAA similarly expects maintenance requirements would be 
prescribed by the manufacturer in the maintenance instructions required 
by Sec.  108.720(a). The UAS manufacturer is in the best position to 
know how to service and maintain the UA and its directly associated AE. 
In addition, under proposed Sec.  108.40 and Sec.  108.45, FAA would 
prescribe standards for maintenance record keeping and service 
difficulty and interruption reporting. The purpose of maintenance is to 
ensure continued safe operation by systematically inspecting the UAS 
for damage and deterioration; inspecting or replacing, as required, 
flight essential parts; and testing its system for proper operation. 
These maintenance functions have been shown to enhance the reliability 
of aircraft in other forms of aviation.
    The BVLOS ARC final report stated that ``risk is mitigated when the 
UAS configuration matches the original design (or as revised) and when 
required actions (inspections, replacements, and repairs) have been 
accomplished.'' In line with this ARC statement, FAA proposes to 
require in Sec.  108.720(a)(2) that manufacturers develop operating and 
maintenance instructions that include identification of flight 
essential parts and their associated inspection criteria or life 
limits. It is important that the maintenance instructions include the 
inspection criteria to ensure the operator proactively finds wear or 
damage, and repairs or replaces the part before a failure can occur. 
Further, the maintenance instructions must include life limits for 
parts so that a part can be proactively replaced before it becomes worn 
or damaged and a failure can occur. Timely inspection or replacement of 
flight essential parts will further enhance reliability and mitigate 
risk. Under proposed Sec.  108.610(b), operators would be required to 
follow the manufacturer's inspection criteria.
    In addition, under proposed Sec.  108.610(c), each operator of a 
UAS would be required to have all

[[Page 38293]]

inoperative equipment and items not in a condition for safe operation 
repaired as prescribed in the manufacturer's maintenance instructions 
prior to operating the aircraft. Safety is predicated on all equipment 
functioning as designed. Operators certificated under the more 
stringent requirements of proposed subpart E would have more robust FAA 
oversight and certification and be able to operate with some 
inoperative equipment per proposed Sec.  108.555, as discussed in 
section VIII.C.6 of this preamble.

E. Life-Limited Parts (Sec.  108.615)

    Identifying, tracking, replacing, and disposing of life-limited 
parts once they have reached their service life limit is a cornerstone 
of safety in aviation and is just as crucial for UAS. FAA proposes in 
Sec.  108.615 that an operator cannot operate a UA with parts that have 
exceeded their life limit. Further, in order to operate a UA, the 
operator must track the status of life-limited parts and replace them 
at any manufacturer-determined interval. An operator will be expected 
to comply with replacement intervals to ensure that the UA stays in a 
condition for safe operation.
    As with other forms of aviation, once a life-limited part has 
reached the end of its life cycle, it must be properly dispositioned to 
ensure that it will not be reintroduced into service. This replacement 
and disposition process would require the operator to track the status 
of each life-limited part installed on the UA to ensure that the life 
cycle of the part is not exceeded, as stated in proposed Sec.  
108.615(b). Any tracking would need to uniquely identify the part and 
its removals and reinstallations. This proposal would further require 
the part to be dispositioned in a manner in which its status is clear 
to anyone who may come into possession of the part. This could be 
accomplished in several ways as provided in Sec.  108.615(c), 
including: a method that uniquely identifies the part and its status, 
such as a tag, record, document, or other marking, made or attached to 
the life-limited part; physically separating the part from good parts; 
or even mutilating or destroying the part to prevent its reinstallation 
onto another aircraft. Tracking the status of life-limited parts is 
essential to ensure compliance with the replacement intervals of life-
limited parts and preventing possible catastrophic failures by use of a 
part outside of its life limit. For the same reasons, if the part is 
sold, transferred, or given to someone else, the life-limited parts 
status must be clearly identified as described in proposed Sec.  
108.615(d).

F. Unmanned Aircraft Batteries (Sec.  108.620)

    Many UA use batteries as a primary power source and do not have 
onboard generators to recharge the batteries in-flight. While this is 
starting to emerge in manned aviation as well, use of batteries as a 
primary power source is much more prevalent in the UAS industry. Most 
UA do not have any backup or reserve power source should the batteries 
fail. This poses some unique considerations about needing to ensure the 
health and status of the batteries.
    Battery-powered UA often use lithium batteries as an inflight power 
source. Lithium batteries have a greater risk of fire and swelling than 
other technologies due to their internal chemistry. Operating a lithium 
battery at or beyond its limits can lead to greater internal 
resistance, which can lead to more heat, resulting in a thermal runaway 
cycle with increasing temperature escalation. As lithium batteries age, 
their energy capacity and ability to deliver power decreases with time 
and usage. Per proposed Sec.  108.620, operators would be required to 
implement a battery monitoring program to ensure that each battery's 
state of health (SOH) is not compromised. Operators would benefit from 
having an SOH battery monitoring program because the program would lead 
to removing compromised batteries from service before failure while 
maximizing the service life of the batteries.
    Proposed paragraph (b) would require that operators remove from 
service any batteries that experience significant degradation or 
inadequate levels of performance to prevent any safety of flight 
issues. Batteries that are significantly degraded or depicting 
inadequate levels of performance may significantly reduce the UA's 
range and ability to perform emergency actions. Operators unable to 
conduct a flight to a safe landing location due to a depleted battery 
that is degraded or not adequately performing would not be in 
compliance with this section. It is the operator's responsibility to 
determine at what point the battery meets these criteria and remove the 
battery from service prior to creating a safety of flight issue. Most 
charging systems for batteries have built-in monitoring that provide 
this functionality automatically, so FAA does not anticipate that this 
will be a heavy burden to implement.

G. Repairs and Alterations (Sec.  108.625)

    Unlike other forms of aviation, FAA is proposing that part 108 
repair and alteration data be authorized only by the manufacturer. 
Under proposed Sec. Sec.  108.740 and 108.750, the manufacturer is 
responsible to maintain the continued operational safety for the 
products they produce and must have access to the design data for any 
repairs and alterations made to the UA to ensure that aircraft design 
integrity remains in compliance to the standards. Further, as required 
in Sec.  108.755, the manufacturer of the UAS that has received 
airworthiness acceptance must authorize any repair or alteration. As 
recommended by the BVLOS ARC, this approach mitigates risk by ensuring 
the UAS remains in a configuration that meets the original or revised 
design requirements. For this concept to work, an operator that wants 
to perform a repair or alteration to the aircraft must either reference 
standard information already provided by the manufacturer in the 
maintenance instructions or ask the manufacturer to provide or approve 
repair data for the specific repair or alteration. An operator could 
develop their own repair or alteration, but the operator would need to 
have the manufacturer review the data and determine that the aircraft 
would remain in compliance with subparts G and H.
    Software updates to UA, whether individual aircraft or an entire 
fleet, are also considered alterations. Under this proposed construct, 
it is the manufacturer's responsibility to ensure the software updates 
have been thoroughly tested and maintain the aircraft's COS as 
described in section X.K. This does not include configuring user-
interface items or end-user flight parameters per the software provided 
by the manufacturer. Proper configuration and setup are still the 
responsibility of the UA operator.
    It is important to note that, consistent with the definition of 
``maintenance'' in 14 CFR 1.1, under proposed Sec.  108.625(b) the 
simple replacement of parts or assemblies with identical, or 
alternative parts or assemblies identified by the manufacturer, is not 
considered a repair or alteration. As such, the requirements of 
proposed Sec.  108.625 would not apply.

H. Operations After Maintenance (Sec.  108.630)

    As with other forms of aviation, FAA is proposing in Sec.  
108.630(a) that, after any maintenance or alteration, an operator can 
only operate the UAS after that UAS is approved for return to service 
by a person that the operator has authorized. In addition, the operator 
must ensure the record of the maintenance actions as provided for in 
Sec.  108.40 is completed prior to operation

[[Page 38294]]

of the UAS, as further detailed in section V.
    Further, when a maintenance or alteration action has been 
accomplished that may have appreciably affected the flight 
characteristics or substantially affected the safe operation of a UAS, 
paragraph (b) proposes that an operational check of the UAS would need 
to be conducted prior to operation. The operational check could include 
power-on systems based self-checks, ground-based checks, short takeoff 
and hover checks, or full flight checks, depending on the nature of the 
repair or alteration and the assurance needed to ensure the repair or 
alteration was completed satisfactorily. Under proposed paragraph Sec.  
108.630(c), where the operational check would include a flight, it must 
not be conducted over people or moving vehicles. This helps to mitigate 
risk to persons and property should anything go wrong during the 
flight. These return-to-service operational checks would be conducted 
under the operator's existing permit or certificate.

X. Procedures for Unmanned Aircraft System Airworthiness (Subpart G)

A. Unmanned Aircraft System Airworthiness

    FAA proposes a regulatory framework for determining the 
airworthiness of unmanned aircraft for proposed part 108 operations. 
There is a need to establish a new risk-based airworthiness process for 
UAS intended to be operated BVLOS under proposed part 108. Under this 
new process, called airworthiness acceptance, the UAS would meet 
performance-based design, production, and airworthiness requirements by 
using a means of compliance (MOC) that would consist of consensus 
standards accepted or approved by FAA and would show it is in a 
condition for safe operation. To receive airworthiness acceptance under 
proposed part 108 airworthiness framework, FAA would require a 
manufacturer to submit a DOC that its UAS design conforms to the 
design, test, production, and airworthiness requirements of subparts G 
and H of part 108 and is in a condition for safe operation. An operator 
would only be authorized to use a UAS that has an airworthiness 
acceptance.
    FAA considered the safety continuum when developing requirements 
associated with an airworthiness acceptance. The safety continuum is 
one way FAA established the appropriate level of safety based on risk 
presented by the aircraft and its operational profile. The proposed 
requirements for part 108 are intended to balance the needs of the 
flying public, manufacturers, and operators with the societal 
expectation of safety.
    FAA considered utilizing part 107 for these operations but found it 
to be insufficient due to the lack of mitigations to ensure the safety 
of routine BVLOS operations and only addressing small UAS. Part 107 
does not have regulatory requirements that ensure the airworthiness of 
the UA. Unlike part 107, which only allows limited BVLOS operations 
under the terms of a waiver with substantial operating limitations, 108 
allows for routine BVLOS operations over populations of persons on the 
ground without the use of visual observers or waivers. Airworthiness of 
the UA becomes a factor in assuring the safety of those on the ground. 
Consequently, FAA considers the level of FAA oversight and FAA scrutiny 
of part 107 UAS to be insufficient for the scope and risk of part 108 
operations. Therefore, FAA proposes an airworthiness acceptance process 
to help mitigate that risk with UAS design standards.
    FAA considered the BVLOS ARC's recommendation to develop an 
airworthiness framework for UAS that closely resembles special 
airworthiness certification of light-sport category aircraft under part 
21 using industry consensus standards. In their final report, the UAS 
BVLOS ARC recommended FAA create a new process for qualification of UA 
with a mass and speed of up to 800,000 ft-lb of kinetic energy, which 
is representative of the existing light sport aircraft category, 
considering maximum weight and airspeed limits. Existing light sport 
aircraft have an upper weigh limit of 1,320 pounds (600 kilograms), 
which is approximately 800,000 ft-lbs. of kinetic energy when flying at 
their maximum speed of 120 knots. At an equivalent weight, light sport 
aircraft pose a higher risk based solely on the fact that people are 
always on board and any loss of control event may result in at least 
one fatality, regardless of what is below the aircraft. This contrasts 
with part 108 where a loss of control event may result in a fatality on 
the ground but is mitigated by operating limitations tied to population 
density of the overflown area and airworthiness requirements. Further, 
under proposed part 108, larger UA would have different operating 
limitations than smaller UA. Though FAA used the BVLOS ARC 
recommendations in developing a maximum weight for UA operating under 
part 108, design and operation limits were set in such a way that they 
are appropriate for the qualitative risk for UAS under the proposed 
rule as compared to that of existing light sport category aircraft. 
Further discussion on maximum size, weight, and speed can be found in 
section XI.B.
    Based on the ARC's recommendations, FAA considered creating a new 
UAS SAC for proposed part 108 operations, which would have consisted of 
two categories based on the risks associated with the operating 
environment and the mass and speed of the UA, one for small UA 
(Category 1), and one for UA weighing not greater than 1,320 pounds 
(Category 2). By creating two categories, FAA would have established a 
process for issuing SACs to UAS based on existing part 21 procedures to 
enable BVLOS operations under part 108, depending on the operators' 
CONOPS. This approach would have created a means to differentiate the 
eligibility of classes of aircraft based on the risk posed by these 
operations, such as whether the UA will be operated over people or the 
size of the UA. The SAC process would require a higher level of initial 
FAA oversight than would be necessary for part 108, because it would 
require FAA to conduct an airworthiness inspection of each UAS 
produced. As discussed earlier, there are no crew members or passengers 
on board, and ground risk is mitigated, in part, by operating 
limitations tied to population density of the overflown area. The 
proposed airworthiness acceptance would appropriately mitigate ground 
risk associated with a UA failing in flight by imposing performance-
based design standards that would increase the reliability of a UAS 
eligible to operate under part 108. Therefore, FAA considers that the 
level of FAA oversight and FAA scrutiny for a special airworthiness 
certification may not be necessary for the scope and risk of part 108 
operations.
    The proposed airworthiness regulations under part 108 aim to 
prevent loss of flight or loss of control incidents stemming from 
factors such as structural integrity, software and hardware 
functionality, performance attributes, and operational factors. The 
proposed design and performance standards would require the UAS to 
withstand all expected flight and ground loads during its operations 
without compromising the UAS's safe operation.
    Implementing design and manufacturing processes to consensus 
standards in the development and production of UAS systems and 
components is necessary to minimize the likelihood of loss of UA 
performance or critical functionality.

[[Page 38295]]

Accordingly, the UAS's design and manufacture under this proposal is 
intended to appropriately address these risks.
    FAA therefore proposes utilizing an airworthiness acceptance 
process, adding subparts G and H of part 108, specifying the 
requirements for design, performance, testing, production, and FAA 
acceptance of part 108 UAS.

B. Associated Elements (Sec.  108.5)

    To further enhance safety and operational efficiency within the 
NAS, FAA proposes regulating UA's AE along with the UA itself as part 
of the airworthiness acceptance process. AE plays a critical role in 
UAS operations. FAA proposes defining AE, in Sec.  108.5, as those 
elements that are not directly affixed to a UA and are necessary to 
interact with the UA for safe flight during all normal, abnormal, or 
emergency flight operations.
    AE is a widely used term and encompasses a wide range of 
components, such as ground control station, pilot interface equipment, 
Fleet Management systems, and cloud-based computing solutions. It also 
includes C2 links, which cover direct radio as well as internet and 
cellular/satellite communications. Equipment for launch and recovery, 
ground-based radars and radios, and third-party services such as 
weather and weather monitoring are also considered AE. Third-party 
services may also need to comply with proposed part 146. Depending on 
the level of interaction with the UAS, additional equipment such as 
battery chargers, landing pads, markers, and specialized containers or 
``hangar boxes'' for data transfer and software updates may qualify as 
well.
    Section 108.880 addresses the proposed AE design and performance 
requirements. The specific requirements of this section will be 
discussed in section XI.Q. As proposed in Sec.  108.720, the 
manufacturer would be required to provide a list of all acceptable 
configurations of UA and AE, which would allow operators and regulators 
to identify the requirements and standards necessary for each 
component, reduce the likelihood of system failures, and improve the 
overall safety of UAS operations.

C. Applying for a Part 108 Airworthiness Acceptance

    For purposes of the proposed part 108 airworthiness acceptance 
framework, the manufacturer would include any person or entity who is 
taking responsibility for the final design and production of the UAS. 
``Manufacturer'' as the term is used in this proposed rule would 
encompass both the producers of UAS and the integrators who combine 
various parts, assemblies, or materials, regardless of whether these 
are sourced domestically or internationally. For part 108 purposes, 
manufacturers would include integrators and any person or entity 
responsible for ensuring compliance to the standards of subparts G and 
H of part 108. It would be their responsibility to demonstrate that 
every material, part, component, assembly, or system within a UAS meets 
the standards of subparts G and H, regardless of whether they were 
produced in-house or supplied by a third party.
1. Eligibility for Airworthiness Acceptance (Sec.  108.700)
    Section 108.700(b) proposes eligibility requirements for 
airworthiness acceptance. All manufacturers would be required to meet 
the eligibility requirements prior to submitting a DOC. Proposed Sec.  
108.700(b)(1) states that for the manufacturer to be eligible to apply 
for a UAS airworthiness acceptance, the UAS must be manufactured in the 
U.S., or be manufactured in a country with a Bilateral Airworthiness 
Agreement addressing UAS or a Bilateral Aviation Safety Agreement with 
associated Implementation Procedures for Airworthiness addressing UAS; 
or an equivalent airworthiness agreement. As discussed in section X.L, 
FAA would retain oversight authority under part 108 through audits and 
inspections. Without the UAS being manufactured in the U.S. (barring 
instances where there are agreements with foreign entities), FAA cannot 
efficiently fulfill its oversight responsibilities, as access may be 
withheld or limited. Appropriate oversight is necessary to ensure the 
safety of the NAS.
    FAA is also considering leveraging its broad statutory authority to 
ensure the safety of the NAS to specifically regulate the operation of 
foreign-manufactured UAS looking to operate in the NAS. FAA is asking 
for specific public comment on whether there should be any particular 
manufacturing restrictions on foreign manufacturers intending to 
manufacture UAS under this rule, such as manufacturing outsourced by a 
foreign manufacturer to a U.S. manufacturer or a U.S. manufacturer's 
production of a UAS using foreign designs or parts from a covered 
country. FAA is also asking for comment on whether there should be any 
particular restrictions on the operation of foreign-manufactured UAS by 
private entities beyond those already provided in law. If there should 
be restrictions on the foreign-manufacture or design of UAS, or on the 
operation of foreign-manufactured UAS, please provide suggestions for 
implementing the restrictions. Also, what security risks do foreign-
manufactured UAS present to U.S. national interests when operated in 
the NAS.
    FAA would rely on a manufacturer's airworthiness DOC as evidence of 
compliance with the requirements of subparts G and H, therefore the 
manufacturer's authorized representative or agent must have knowledge 
of the requirements and what the attestations in the DOC mean. Under 
proposed Sec.  108.700(b)(2), any authorized representative or agent, 
who is responsible for signing and certifying the statements in the 
DOC, of the manufacturer would be required to be trained and certified 
to make the declaration. FAA expects industry to develop and implement 
training and certification to enable manufacturers to fully understand 
FAA regulatory requirements and policies applicable to airworthiness 
acceptance of UAS and the means necessary to meet applicable 
requirements. Proposed Sec.  108.700(b)(2) would require fulfillment of 
this training to be eligible to submit a DOC. Further, training must be 
conducted by an organization that trains and certifies quality 
assurance staff in accordance with FAA-accepted consensus standards. To 
demonstrate completion of a training program for manufacturers and 
manufacturer's authorized representatives or agents who sign 
declarations of compliance, FAA would expect the training providers to 
issue a certificate of completion as evidence of compliance with part 
108.
2. Submitting a Declaration of Compliance (Sec. Sec.  108.710)
    Section 108.710(a) proposes that a manufacturer requesting 
airworthiness acceptance would be required to submit a DOC that meets 
the requirements of Sec.  108.715. The DOC is an application for 
airworthiness acceptance and a means to attest to FAA that the 
manufacturer has demonstrated compliance with all UAS design, 
production, test, and airworthiness requirements of part 108 using FAA-
accepted or approved MOC. A manufacturer's submission of a DOC would be 
necessary to obtain airworthiness acceptance by FAA for the specific 
UAS make, model, series and serial number listed on the DOC. This would 
mean that each UA would need to obtain airworthiness acceptance.
    The manufacturer would do this by submitting a DOC via an 
electronic form available on FAA's website. Recognizing that multiple 
identical UA will be

[[Page 38296]]

manufactured in a single production run, FAA proposes to provide 
manufacturers with the ability to efficiently submit DOC documentation 
for up to 500 UA at once through an online portal; paper applications 
would not be accepted. A web-based tool would be the only method 
available for applying for airworthiness acceptance. The web-based tool 
would securely transmit the completed application and related 
documents, if required, to the appropriate FAA office for processing. 
FAA acceptance of a manufacturer's DOC establishes airworthiness 
acceptance, which is necessary for eligibility to obtain an operations 
permit or certificate to conduct operations under part 108. FAA would 
accept the manufacturer's DOC as an attestation that compliance to the 
applicable requirements has been shown. If additional information is 
required, the proposed record retention requirements of Sec.  108.760 
require manufacturers to make available any supporting information used 
to demonstrate compliance, which may include information supporting 
compliance with the requirements of subparts G and H, upon request by 
FAA. This would include a manufacturer's technical data substantiating 
compliance for FAA review.

D. Means of Compliance (Sec. Sec.  108.705 and 108.710)

    Proposed Sec.  108.710(b) requires a manufacturer seeking 
airworthiness acceptance for a UAS to comply with subparts G and H of 
part 108 using a MOC, consisting of voluntary consensus standards, that 
would be accepted or approved by FAA. FAA uses the term ``MOC'' to 
refer to the means the manufacturer uses to show that its UAS is 
designed, produced, and tested to conduct the manufacturer designated 
operation(s) under part 108.
    Rather than using prescriptive requirements, FAA proposes 
manufacturers use voluntary consensus standards as an MOC to meet 
performance based UAS design test, production and airworthiness 
requirements of subparts G and H.\132\
---------------------------------------------------------------------------

    \132\ FAA Order 8000.376, Development and Use of Voluntary 
Consensus Standards (Mar. 4, 2024).
---------------------------------------------------------------------------

    An accepted MOC would provide an acceptable manner by which a UAS 
manufacturer can comply with specific provisions of part 108, subparts 
G and H, with the exception of noise requirements. An accepted MOC is 
reviewed by FAA, no objections are found, and its use is communicated 
to the public. An approved MOC would provide an acceptable manner by 
which a UAS manufacturer would comply with part 36 noise requirements. 
FAA approves, rather than accepts, an MOC for part 36 noise 
requirements to maintain consistency with FAA's practices used in noise 
certification for other aircraft, including FAA's approvals of 
equivalent noise testing procedures. FAA's approval of noise standards 
is necessary to verify that the standard meets FAA's obligations 
pursuant to 49 U.S.C. 44715 to limit aircraft noise.
    Similarly, FAA's acceptance of voluntary consensus standards for 
design and production requirements allows FAA to determine if the 
standard meets the applicable requirements of subparts G or H. Using 
voluntary consensus standards accepted or approved by FAA would be the 
only means to show compliance to the requirements of subparts G and H, 
except for the noise and cybersecurity carve outs mentioned in section 
X.E of this preamble. Voluntary consensus standards are developed by 
industry organizations, in meetings open to all interested parties, and 
often with input from FAA. The standards produced by consensus 
standards bodies therefore are based on input from a broad range of 
perspectives.
    FAA intends for industry to develop consensus standards that serve 
as the MOC for the specified UAS design, test, production, and 
airworthiness requirements to obtain airworthiness acceptance. To 
propose a consensus standard as an MOC to the requirements of subparts 
G and H of part 108, proposed Sec.  108.705(a)(1) allows a voluntary 
consensus standards body to submit a voluntary consensus standard to 
FAA for acceptance as a means of compliance for satisfying a 
requirement of subpart G or H of this part. This would be done in a 
manner acceptable to FAA. Once a consensus standard is submitted to FAA 
for acceptance, Sec.  108.705(a)(2) proposes that, if FAA determines 
the applicant's proposed MOC satisfies the requirements of subparts G 
and H, FAA would notify the applicant it has accepted the MOC. To 
inform the public which MOCs are available to them for demonstrating 
compliance with the requirements of subparts G and H of part 108, Sec.  
108.705(a)(3) proposes FAA would publish a notice in the Federal 
Register announcing acceptance of the standard to the public as 
proposed or with modification. This notice would provide an opportunity 
to the public to comment on the specific details of the MOC and to 
propose alternatives or enhancements to the standard for FAA review and 
acceptance. If FAA receives comments on the MOC, FAA will adjudicate 
any comments received and publish a final notice of its acceptance of 
the MOC, with any accepted modifications. For purposes of compliance 
with part 36, voluntary consensus standards bodies may develop 
corresponding noise consensus standards. To increase the likelihood of 
FAA's approval of the noise consensus standards, voluntary consensus 
standards bodies are encouraged to seek FAA's feedback throughout the 
standards development process. The process for submitting an MOC to FAA 
and notifying the voluntary consensus standards body for noise would 
parallel the general process for submitting a MOC for Sec.  108.705, in 
a manner acceptable to FAA. To inform the public which MOCs are 
available to them for demonstrating compliance with the noise 
requirements, Sec.  108.705(b)(3) proposes FAA would publish a notice 
of availability in the Federal Register announcing approval to the 
public and will make the noise consensus standards available on 
FAA.gov.
    FAA's review and acceptance or approval process of an MOC is not 
intended to restrict industry's ability to develop consensus standards, 
but rather enables FAA to confirm that an industry-developed consensus 
standard for UAS design, operation, production, maintenance, or 
airworthiness complies with the proposed performance-based regulatory 
requirements of subparts G and H. Further, FAA seeks input on whether 
FAA should develop MOCs that could be used in lieu of consensus 
standards developed by voluntary consensus standards bodies.

E. Compliance With Design, Test, Production, Noise, and Airworthiness 
Requirements (Sec.  108.710)

    Determining compliance with consensus standards is essential to 
enable airworthiness acceptance of a UAS for operations under part 108. 
Accordingly, FAA is proposing in Sec.  108.710 that the UAS would need 
to be designed, tested, and produced to the requirements in subparts G 
and H, and this compliance must be determined by individuals who have 
been appropriately trained in making those determinations.
    Section 108.710(b) proposes that a manufacturer would need to have 
a UAS that meets the design, test, production, and airworthiness 
requirements specified in subparts G and H using MOC approved or 
accepted by FAA. For the design, testing, production, and airworthiness 
requirements, these MOC would be voluntary consensus standards accepted

[[Page 38297]]

by FAA. Manufacturers demonstrating compliance with part 36 would use 
either an FAA-approved noise consensus standard or other methods listed 
in proposed Sec.  36.0. In addition, manufacturers would comply with 
cybersecurity requirements by using an FAA-accepted standard, which 
would not be required to be submitted by a voluntary consensus standard 
body. FAA would approve industry standards for compliance with part 36 
noise requirements. However, FAA would accept industry standards for 
the remaining airworthiness requirements of this rule. Consensus 
standards must either be accepted or approved by FAA to be used as an 
MOC under the proposed rule. This is further explained in section X.E 
of this preamble.
    A manufacturer would only submit an airworthiness DOC for FAA 
acceptance after the manufacturer has ensured their UAS meets all 
applicable part 108 requirements. The DOC requirement is intended to 
ensure that a UAS entering the airspace has met applicable 
airworthiness standards and that the manufacturer would be able to 
provide the necessary support for the UAS.
    This proposal would further require development of training to 
enable the manufacturer to fully understand the regulatory requirements 
and policies applicable to the airworthiness acceptance of part 108 UA 
and the means necessary to meet applicable requirements. In view of the 
criticality of this need and FAA's primary reliance on the 
manufacturer's DOC, Sec.  108.710(c) proposes that only individuals who 
have been trained on determining compliance with the applicable FAA-
accepted or approved consensus standards would be able to make the 
determination that the UAS meets those consensus standards and 
therefore the requirements of proposed part 108. This proposed 
requirement emphasizes the necessity for individuals involved in 
determining compliance with design, test, production, and airworthiness 
requirements, such as engineers, quality assurance professionals, and 
maintenance experts tasked with making compliance findings, to undergo 
training. The training required for Sec.  108.710(c) is different than 
what was discussed earlier in Sec.  108.700(b). The training in 
proposed Sec.  108.700(b) is meant for the individual signing the DOC 
so they understand the DOC process and the responsibilities included 
with submitting a DOC. In contrast, the training in Sec.  108.710(c) 
would include a comprehensive explanation of the specific requirements 
of applicable consensus standards, and methodologies for accurately 
assessing compliance with these standards. FAA considers that training 
would reduce the number of inaccurate DOCs submitted. Without full 
knowledge and awareness of the specific requirements of subparts G and 
H and the MOC with these requirements, a manufacturer's agent or 
representative would not be able to ensure the accuracy of a DOC. FAA 
proposes training to ensure UAS manufacturers and those individuals 
determining compliance with design, testing and production requirements 
are fully aware of the regulatory requirements and methods of 
compliance increasing the integrity of the DOC system.

F. Declaration of Compliance (Sec.  108.715)

    The DOC serves as the manufacturer's attestation that the UAS 
complies with the applicable requirements through use of FAA-accepted 
or approved MOCs. FAA proposes in Sec.  108.715(a) to require a 
manufacturer submit a DOC for acceptance by FAA in a form or manner 
acceptable to FAA. The DOC would require the manufacturer to identify 
the specific UAS, designate the operation the UAS is designed to 
conduct, attest that the required documentation exists, demonstrate 
accountability, and declare compliance.
    Proposed Sec.  108.715(b)(7) through (16) would require the 
manufacturer to attest to the applicable compliance requirements of 
subparts G and H and part 89 (Remote Identification of UA). Proposed 
Sec. Sec.  108.715(b)(1) through (6), 108.715(b)(10), and (14) are 
discussed below. The specific compliance requirements for paragraphs 
(7) through (9), (11) through (13), (15), and (16) is explained more 
fully in section V of this preamble. FAA considers these attestations 
to be foundational for submission of a DOC for airworthiness 
acceptance.
1. Identification
    Per proposed Sec.  108.715(b)(1), a manufacturer would provide 
their name and contact information on the DOC. This contact information 
would include physical address, telephone, and email address and would 
ensure that FAA knows who the responsible entity is and how to contact 
them in case a noncompliance or a safety issue arises that requires FAA 
to visit the manufacturer or the manufacturer's facility to resolve the 
issue.
2. Make/Model/Series/Serial Number
    Per proposed Sec.  108.715(b)(2), the DOC would identify the UAS by 
make, model, series, serial number, and date of manufacture to ensure 
the appropriate configuration is declared compliant and tracked by the 
manufacturer. The UA serial number must be compliant with the Remote 
Identification of Unmanned Aircraft, Design and Production serial 
number requirements of Sec.  89.505. Maintaining a consistent UAS make, 
model, and serial number configuration from flight test through 
production is necessary to ensure the UAS on the DOC complies with the 
requirements of subparts G and H of part 108. Operators would also 
benefit from knowing which specific UAS make, model, series, and serial 
number have received airworthiness acceptance, which is necessary for 
obtaining an operating permit or certificate.
3. Designated Operation
    Section 108.715(b)(3) proposes that manufacturers seeking 
airworthiness acceptance for their UAS would need to designate any part 
108 operational purpose the UAS is designed to conduct. The operational 
purpose should be stated in the UAS operating instructions as required 
by Sec.  108.720(a)(1). The manufacturer is in the best position to 
determine if the UA has sufficient structural integrity, performance, 
and capability to conduct any permitted or certificated operations of 
Sec.  108.400 and Sec.  108.500. This proposed requirement is necessary 
to ensure UAS designated to conduct part 108 operations are designed 
and constructed to the appropriate consensus standards. Failure to 
establish and validate adequate material strength, UA performance, and 
design properties to accommodate a designated operation could cause 
loss of functionality or structural failure resulting in loss of 
aircraft control.
4. Consensus Standards
    As stated in section X.E of this preamble, the MOC to the specified 
UAS design, production, and airworthiness requirements are industry 
consensus standards accepted or approved by FAA. Proposed Sec.  
108.715(b)(4) through (6) would require the manufacturer to specify 
FAA-accepted or approved consensus standards or cybersecurity standard 
used to determine compliance on their DOC. FAA must understand which 
requirements the UAS was manufactured under to address any 
noncompliance or safety issue that may arise. Further, as proposed in 
Sec.  108.745, FAA retains authority to conduct a review of the 
manufacturer's technical data substantiating compliance. Having a 
listing of FAA-accepted or approved consensus standards used to design, 
test, and produce the UAS will ensure

[[Page 38298]]

application of the appropriate standards.
5. Documents
    To ensure UAS are operated and maintained appropriately and are in 
the proper configuration, manufacturers of UAS would be required to 
declare in Sec.  108.715(b)(10) they will, upon request, make available 
to any registered owner, the NTSB, or FAA the documents specified in 
Sec.  108.720. Proposed Sec.  108.720 would require the manufacturer to 
prepare operating instructions, maintenance instructions, and a 
configuration control document and make them available to registered 
owners, NTSB, and FAA upon request. FAA intends for industry to develop 
consensus standards acceptable to FAA to serve as a MOC to these 
document requirements. The specifics of these documents and who they 
are made available to are described further in section X.G of this 
preamble.
6. Regulator Access
    Proposed Sec.  108.715(b)(14) requires manufacturers to state in 
their DOC that, at the request of FAA, they will provide unrestricted 
access to their facilities, to all data, documentation, and allow FAA 
to witness any tests necessary to determine compliance with Sec.  
108.715 or other applicable requirements of chapter I of title 14, or 
other information as requested by FAA. The DOC, when signed by the UA's 
manufacturer, would provide consent to FAA inspection of its 
facilities, and constitutes an assertion that the information contained 
in the document is true. To fulfill its oversight responsibilities, FAA 
may require access to a manufacturer's facilities or any data for the 
purpose of auditing compliance with applicable standards. This access 
enables FAA to take those actions necessary to verify unsafe conditions 
have been properly addressed or respond to a UA accident or incident. 
The affirmative requirements are proposed in Sec.  108.745. These 
requirements are more fully described in section X.L of this preamble 
regarding inspections and audits.
7. Accountability for Persons Submitting Declarations of Compliance
    Given the criticality of a manufacturer's DOC in obtaining 
airworthiness acceptance, FAA is proposing requirements that 
individuals making compliance declarations are trained in the use of 
consensus standards. Proposed Sec.  108.715(c) would require the DOC to 
be signed by the manufacturer's authorized representative or agent who 
is certified and trained on the requirements associated with the 
issuance of a DOC by an organization that trains and certifies quality 
assurance staff in accordance with a consensus standard that has been 
accepted by FAA.
    This proposal would require development of training to enable the 
manufacturer to fully understand the regulatory requirements and 
policies applicable to the airworthiness acceptance of part 108 UA and 
the means necessary to meet applicable requirements. A manufacturer 
meeting the training and certification requirements of proposed Sec.  
108.700(b)(2) for eligibility to submit an airworthiness DOC would 
satisfy the requirements of proposed Sec.  108.715(c). By requiring 
these parties to be appropriately trained, the airworthiness acceptance 
process can ensure integrity in its risk-based approach. These proposed 
training and certification requirements of Sec.  108.715(c) would be 
necessary for manufacturers to create a DOC account and submit 
declarations of compliance for the specific UAS make, model, and serial 
number.
    Section 108.715(d) proposes that, if the manufacturer has 
demonstrated compliance with the testing requirements and other 
requirements of subpart G of part 108, FAA will accept the DOC and 
notify the manufacturer that FAA has accepted their DOC. FAA acceptance 
of a manufacturer's DOC means the UAS has received airworthiness 
acceptance. Unlike airworthiness certificates issued by FAA under 14 
CFR part 21, FAA will not be issuing paper documentation to accept the 
airworthiness of the UAS. FAA will utilize electronic means to convey 
acceptance to the manufacturer. Once accepted, FAA will make details of 
the UAS with airworthiness acceptance available on its website to aid 
operators in selecting UAS with FAA airworthiness acceptance. This 
information would be useful to operators who wish to conduct BVLOS 
operations under proposed part 108 operating requirements. UAS with 
airworthiness acceptance would be eligible for part 108 operations 
either under a permit or certificate.

G. Required Documents for Airworthiness Acceptance (Sec.  108.720)

    To ensure that operations supervisors, flight coordinators, 
maintenance personnel, and other interested parties have the necessary 
information to conduct UAS BVLOS operations in the airspace safely, 
Sec.  108.720 proposes that manufacturers seeking airworthiness 
acceptance would be required to prepare a series of documents. Under 
this proposal, FAA would require operating instructions (proposed Sec.  
108.720(a)(1)), maintenance instructions (proposed Sec.  
108.720(a)(2)), and a configuration control document (proposed Sec.  
108.720(a)(3)) for each UAS. FAA expects industry consensus standards 
bodies to propose standards as the MOC for the development of these 
documents. In addition, Sec.  108.720(b) proposes that manufacturers 
would need to make these documents available to any registered owner, 
the NTSB, or FAA upon request for any UAS with an airworthiness 
acceptance. The detailed requirements for these documents are described 
below.
    Proposed Sec.  108.720(a)(1) would require manufacturers to prepare 
operating instructions for each UAS when submitting a DOC for FAA 
airworthiness acceptance. Under proposed Sec.  108.720(a)(1)(i), 
operating instructions would contain procedures and limitations to 
accommodate all operating conditions likely to be encountered in the 
UAS's intended operations, including normal, abnormal, and emergency 
procedures. FAA expects these operating limitations would address 
certain weather phenomena such as freezing precipitation, takeoff, or 
landing crosswind limits, hot or cold weather procedures, and other 
conditions likely to be encountered during its intended operation. FAA 
also expects any controlled airspace limitations would be included. A 
UAS operated in environments beyond the limits of its design could lead 
to loss of control of the UA leading to an incident or accident. 
Operating instructions that include normal, abnormal, and emergency 
procedures would ensure the flight coordinator is informed on how to 
operate the UAS and knows the steps necessary to respond to changing 
conditions affecting the safe operation of the UAS, reducing the 
likelihood of human error. Instructions and limitations that apply to 
all operations using the UAS would not need to be repeated for 
designated part 108 operations.
    Proposed Sec.  108.720(a)(1)(ii) would require manufacturers to 
list all the manufacturer-designated operations, as defined in 
Sec. Sec.  108.400 and 108.500, that may be safely conducted using the 
UAS, including all AE, in the operating instructions. This requirement 
would ensure that an operator knows which operations the UAS is 
designed for and that those operations can be conducted within the safe 
operating limitations of the UAS. This would inform operations 
supervisors and flight coordinators

[[Page 38299]]

which operations are within the capabilities of the UAS.
    Proposed Sec.  108.720(a)(1)(iii) would require the manufacturer to 
designate the ratio of UA to flight coordinators that has been designed 
and validated during flight testing under subpart H of part 108. This 
allows the operations supervisor to know the maximum ratio of flight 
coordinator to number of aircraft which the UAS is designed to support. 
Operational limitations on operating permits and certificates may 
ultimately reduce this ratio but may not increase it. According to 
proposed Sec.  108.210(a), the default operating limitation is an 
operator may only conduct operations at a UA-to-flight coordinator 
ratio of 1:1. An operator would need to seek a higher ratio, up to the 
maximum UA to flight coordinator ratio designated by the manufacturer 
in the operating instructions, during the permitting or certification 
process. Furthermore, an operator may only conduct operations at a UA-
to-flight coordinator ratio equal to or less than what the manufacturer 
has specified in the operating instructions as proposed in Sec.  
108.210(c).
    Proposed Sec.  108.720(a)(1)(iv) states that the UAS operating 
instructions would need to include the following statement from the 
manufacturer: ``No determination has been made by FAA whether the noise 
levels of this aircraft are or should be acceptable for operation in 
any location.'' This statement, consistent with the proposed revisions 
of Sec.  36.1581, would provide operators with awareness that they are 
solely responsible for compliance with any operational noise abatement 
procedures and requirements for the locations where the UA is operated. 
Manufacturers would also be required to indicate in the operating 
instructions that the aircraft has demonstrated compliance with part 36 
and provide the demonstrated noise levels of the aircraft. Both 
statements are consistent with the requirements in proposed Sec.  
36.1581(h).
    Proposed Sec.  108.720(a)(1)(v) states that the UAS operating 
instructions would need to include a list of the parts and installed 
equipment necessary for the operation of the aircraft, or a list of 
equipment that is allowed to be inoperative. This information is 
necessary to ensure operators comply with proposed Sec.  108.555 and to 
keep operators informed about the operational status of their systems.
    Proposed Sec.  108.720(a)(2) would require the manufacturer to 
develop maintenance instructions that include procedures necessary to 
ensure continued safe operation of the UA and its AE, including, but 
not limited to, inspection criteria, repairs, and life limits. FAA 
expects manufacturers would develop maintenance instructions that 
detail the necessary steps to perform maintenance tasks, such as 
replacing a battery, or to inspect a propeller for damage or wear. 
Maintenance instructions may contain tasks and procedures to conduct 
maintenance, inspections, tests, and checks that includes various 
elements of the UA, such as the airframe, motor, propeller, rotor, 
systems, and AE as applicable. These procedures are necessary to ensure 
the continued safe operation of the UAS.
    Established maintenance and inspection intervals or life limits 
would ensure no component, part, or system of the UAS is used beyond 
its established service life, reducing the likelihood of failure. 
Service life would be established based on demonstrated capabilities. 
Extending beyond defined service life could result in a loss of flight 
or unrecoverable loss of UA control. Examples of unrecoverable loss of 
UA control could include loss of control, flyaway, or inability to 
maintain safe distance.
    Inspection criteria typically include a schedule for performing 
maintenance and inspections, expressed in time in service, calendar 
time, number of system operations, or any combination thereof. By 
incorporating these elements into the maintenance instructions, the 
manufacturer ensures the operator of the UAS is informed on maintenance 
actions necessary to ensure the continued safe operation and that 
components are properly maintained, inspected, and managed throughout 
the lifecycle of the UAS. This proactive approach to maintaining the 
UAS contributes to the overall safety and operational reliability of 
the UA, reducing the likelihood of accidents or incidents caused by 
component wear or failures.
    While it is the manufacturer's responsibility to ensure all 
combinations of components of the UAS have been thoroughly evaluated to 
function together as a system, it is also the operator's responsibility 
to ensure that the chosen configuration of the aircraft conform to the 
configuration control document. By providing a configuration control 
document with the UAS, the manufacturer would identify all allowable 
configurations of the UAS. This information would ensure flight 
coordinators are operating a UAS in the proper configuration for a 
particular operational purpose. Therefore, to ensure flight 
coordinators are operating a UAS in the appropriate configuration for a 
given operational purpose, proposed Sec.  108.720(a)(3) would require 
manufacturers to create a Configuration Control Document that defines 
all acceptable configurations of both the UA and its AE. To satisfy 
this requirement, FAA expects manufacturers to create and maintain a 
document defining all acceptable configurations of both the UA and the 
AE. This configuration control document should identify all hardware by 
part number, identify all software by version number, and define 
acceptable combinations if multiple options exist. Unevaluated and 
untested combinations of UAS components may introduce unexpected 
reliability or safety risks. Configuration control also would support 
COS objectives by allowing an expedited survey of the fleet to identify 
additional configurations which may demonstrate an unsafe condition. 
See section X.K of this preamble for further discussion regarding COS.
    Proposed Sec.  108.720(b) would require the operating instructions, 
maintenance instructions, and configuration control document to be made 
readily available by a manufacturer to any registered owner, the NTSB, 
or FAA, if requested. This requirement would ensure that operators have 
the information necessary to operate the UAS safely and perform any 
required maintenance. Further, the NTSB and FAA should have the ability 
to review these documents to ensure compliance of UAS and verify 
airworthiness acceptance, especially in the event of a safety incident 
or accident.

H. Flight Data and Data Reporting (Sec.  108.725)

    Under this proposal, in Sec.  108.725(a), manufacturers of the UAS 
that has received airworthiness acceptance would be required to develop 
and maintain a system dedicated to the collection of flight data across 
all models of UAS produced by that manufacturer. This system would 
actively capture and securely store flight information, encompassing, 
but not limited to the data required in Sec.  108.45(a)(2) which would 
include make, model, series, serial number, flight duration, altitude, 
speed, location, and any incidents or anomalies recorded during flight 
operations. The implementation of such a data collection system would 
serve as a cornerstone for enhancing safety, facilitating detailed 
post-flight analyses, and fostering continuous improvement. 
Traditionally, these data collection systems are already voluntarily 
implemented within the industry to analyze flight data and identify 
safety

[[Page 38300]]

issues during developmental testing and to conduct accident 
investigations. Many manufacturers collect and store the information 
FAA proposes, driven by a blend of internal performance monitoring and 
engineering practices. By requiring this practice, FAA proposal not 
only aligns with current industry standards but also ensures uniformity 
of data collection across all manufacturers.
    Under proposed Sec.  108.725(b), manufacturers of the UAS that has 
received airworthiness acceptance would be required to preserve records 
of flight data for a period no less than two (2) years subsequent to 
the data's acquisition. This retention policy would support 
investigations in the event of incidents or anomalies, ensuring 
regulatory compliance, and supporting the ongoing enhancement of safety 
protocols. While UAS might be operational for periods extending beyond 
two (2) years, FAA anticipates configuration adjustments, software 
updates, and system advancements will render data older than two years 
obsolete. These changes are likely to render historical flight data 
less reflective of the current state and capabilities of the fleet. 
Therefore, a two (2) year retention period is considered both practical 
and sufficient for maintaining relevant and actionable flight data 
records and balancing interests in data retention.
    Section 108.725(c) proposes, to safeguard the privacy and security 
of flight data; manufacturers of the UAS that has received 
airworthiness acceptance would need to implement security measures. 
These measures would need to ensure the confidentiality and integrity 
of the collected data. The implementation of such security measures is 
essential for protecting sensitive information from unauthorized access 
or breaches. Any developed flight data standards would consider these 
security measures.
    Manufacturers of the UAS that have received airworthiness 
acceptance would be required to grant FAA access to the collected 
flight data upon request under proposed Sec.  108.725(d). This 
requirement would ensure that FAA has the necessary information to 
perform comprehensive safety analyses, engage in regulatory oversight, 
and respond promptly to concerns or inquiries. Section 108.725(d) also 
proposes the collected flight data would be provided to FAA in a manner 
acceptable to FAA. Providing access to data in a format compatible with 
FAA systems would streamline the process of data review and facilitates 
effective communication between manufacturers and FAA, contributing to 
the overall safety and efficiency of the national airspace. FAA expects 
to provide guidance on acceptable methods for providing data.

I. Quality Assurance System (Sec.  108.730)

    Section 108.730 proposes the UAS would need to be designed, 
produced, and tested under a manufacturer-established and documented 
quality assurance system to ensure that each UAS produced conforms to 
its design and is in a condition for safe operation. Establishing and 
documenting a quality assurance system would ensure that UAS meet 
applicable design, production, and airworthiness requirements and are 
manufactured and tested in accordance with identified consensus 
standards in a consistent manner. Meeting the proposed quality 
assurance requirements, using applicable FAA-accepted consensus 
standards, would mitigate the likelihood of using obsolete design 
drawings or procedures, improper materials or manufacturing techniques, 
and inadequate testing procedures that could result in the UAS not 
conforming to its design and jeopardize the safe operation of the UAS. 
A well-documented quality assurance system would allow manufacturers or 
third-party auditors to verify that the UAS is produced in accordance 
with established procedures and suitable for operations in the NAS.
    A single defect or error in production or maintenance can have 
significant consequences, including equipment failure, accidents, 
property damage, and even loss of life. A robust quality assurance 
program helps to identify and prevent potential issues before they 
occur. Such a quality assurance program could include regular 
inspections, testing, and monitoring of aircraft and components to 
ensure that they meet established quality and safety requirements of 
FAA-accepted consensus standards.
    A quality assurance system should include items such as product 
configuration control, training, document control, change control, 
supplier control, and material control as well as inspections, audits, 
and identification and handling of nonconforming material. The quality 
assurance system could also include a quality assurance record, which 
is the permanent record of quality assurance for each UA produced by 
the UAS manufacturer. While retaining its ability to inspect the 
manufacturer's facility and quality assurance system under proposed 
Sec.  108.745, FAA would rely on a manufacturer's DOC and the MOC cited 
within as primary evidence of compliance to the requirements of Sec.  
108.730 for a quality assurance system.

J. Production Acceptance (Sec.  108.735)

    Prior to airworthiness acceptance and sale to an operator, the 
manufacturer must conduct a production acceptance inspection and 
perform testing for each UAS produced. Section 108.735(a) and (b) 
proposes each manufacturer inspect and test each UAS produced under 
manufacturer-established and documented production acceptance 
procedures to demonstrate the UAS has no hazardous operating 
characteristics or design features; and is in a condition for safe 
operation. Inspection and testing are essential in validating the UAS 
conformance to design standards. Performing inspection and testing 
under a documented production acceptance procedure would verify that 
each aircraft does not have any unforeseen hazardous flight 
characteristics and would ensure that the UAS was properly constructed. 
This inspection and testing would ensure no product is introduced into 
the NAS before all safety issues are thoroughly addressed, thereby 
preventing deployment of potentially unsafe systems. Further, this 
inspection and testing would ensure that the UA's structure is of 
sufficient strength for its intended operations and that the interface 
with its AE is performing as intended. FAA recognizes that flight 
testing every UA produced may not be necessary for every manufacturer 
and production system, therefore FAA invites comment on when a 
documented production acceptance procedure may allow for an evaluation 
that does not include flight test to ensure the aircraft is in a 
condition for safe operation.
    Manufacturers would need to obtain an operating permit for flight 
testing purposes prior to conducting any production testing in the NAS, 
per proposed Sec.  108.470.
    As stated in proposed Sec.  108.715(b)(3), the manufacturer 
designates in the airworthiness DOC the specific part 108 operations 
the UAS is designed to conduct. The production acceptance inspection 
and test procedures required by proposed Sec.  108.735(c) would need to 
further demonstrate that the UAS has been designed and constructed to 
conduct any permitted or certificated operations of proposed Sec. Sec.  
108.400 and 108.500 that the manufacturer designates. Production 
acceptance inspection and testing would validate that each UAS is 
capable of safely conducting a manufacturer-designated part 108 
operation.
    As part of the proposed production acceptance procedure, the UAS

[[Page 38301]]

manufacturer would conduct an inspection of the UAS to ensure that the 
UAS complies with the applicable standards and is in a condition for 
safe operation. A UAS that is not in a condition for safe operations 
would not be eligible for airworthiness acceptance.
    The inspection would be conducted prior to submission of the 
airworthiness DOC, as required in Sec.  108.715(b)(13). The goal of the 
inspection would be to identify issues of non-compliance that have the 
potential to affect the safe operation of the UAS prior to it being 
sold to an operator. To ensure the UAS complies with the applicable 
standards used to demonstrate compliance with subparts G and H of part 
108, FAA would expect this inspection to include a review of the 
records and documents required for airworthiness acceptance.
    FAA expects the inspection to include a review of the maintenance 
instructions, operating instructions, and configuration control 
documentation required in proposed Sec.  108.720(a)(1) through (3) for 
completeness and accuracy. As part of this inspection, the manufacturer 
should verify that the maintenance inspection instructions are 
available for the UAS and that they apply to the make, model, series, 
and serial number of the UA being inspected. In addition, the 
manufacturer would confirm that the aircraft maintenance records show 
compliance with all applicable UAS manufacturer's safety bulletins at 
the time of declaration and a verification that the maintenance 
instructions include procedures for reporting in-service safety issues 
to support proposed Sec.  108.740, as described in section X.H of this 
preamble, Flight Data and Data Reporting, in a manner acceptable to 
FAA. For a UAS that has a type-certificated product or article 
installed, the inspection would ensure any applicable Airworthiness 
Directives for that product or article are complied with by the UAS 
manufacturer before submitting an airworthiness DOC. Finally, the 
manufacturer would review the configuration control documentation to 
ensure the UAS's make, model and serial number conform to the 
manufacturer's approved configuration, as required by proposed Sec.  
108.720(a)(3).
    FAA anticipates that industry would develop acceptable and 
appropriate consensus standards to comply with the performance-based 
requirements in proposed Sec.  108.735. Production acceptance 
procedures would allow a UAS buyer to receive a complete UAS that 
conforms to the manufacturer's design data and would provide the 
manufacturer with an opportunity to detect and fix any missing, broken, 
misaligned, or improperly installed components or systems and would 
ensure all documents required by proposed Sec.  108.720 are complete 
and accurate.

K. Continued Operational Safety Program (Sec.  108.740)

    In the context of part 108, COS is an oversight program consisting 
of audits, evaluations, education, and accident/incident 
investigations, used to ensure UAS in-service continue to meet the 
safety requirements, standards, and regulations for airworthiness 
acceptance. A COS program is the method a manufacturer uses to support 
in-service safety following production acceptance and entry into 
service of a UAS.
    FAA considers the implementation of a COS program by UAS 
manufacturers essential to maintaining the safety of part 108 UAS, the 
NAS, and people that may be impacted by UAS operations on the ground. 
Therefore, proposed Sec.  108.715(b)(11) proposes that a manufacturer 
must declare that it will support the UAS by implementing and 
maintaining a documented COS program as required in proposed Sec.  
108.740.
    Proposed Sec.  108.740(a) requires the manufacturer to implement 
and maintain a documented COS program as declared in the DOC. This COS 
program would need to be in accordance with the specified FAA-accepted 
consensus standard.
    Section 108.740(b) proposes that the COS program would need to 
address monitoring and resolution of in-service safety issues and 
identified non-compliance with subparts G and H of part 108. This must 
include provisions for the issuance of safety bulletins from the 
manufacturer to all owners and include a process for notifying FAA and 
all owners of the UA model at issue of safety issues and noncompliance, 
including their planned resolution. This must also include a process 
for providing advance notice to FAA and all owners of the UAS in 
question of a discontinuance or provider change of the COS program, 
which is essential for ensuring uninterrupted coverage for a 
manufacturer's fleet in service. FAA anticipates that the notification 
of safety issues to the owners could be achieved through means such as 
a manufacturer's website or through a product registration process with 
the manufacturer.
    A well-documented COS program would be utilized by the manufacturer 
to effectively monitor and resolve in-service safety-of-flight issues. 
When such monitoring identifies a safety issue, manufacturers would be 
required to take appropriate action to resolve those issues, such as 
the issuance of safety bulletins to address unsafe conditions for their 
products.
    Lastly, proposed Sec.  108.740(c) would require manufacturers of 
the UAS that has received airworthiness acceptance to report any 
identified hazard involving their UAS models to FAA within 10 calendar 
days of the manufacturer becoming aware of the hazard. Such reports 
should include pertinent flight data to aid in the investigation and 
mitigation of potential safety risks, thereby enhancing the safety of 
UAS operations. While FAA is proposing that operators will be reporting 
incidents and accidents to the manufacturer, analysis of that flight 
data by a manufacturer may reveal previously unidentified hazards.
    The combined requirements in proposed Sec.  108.740 would 
facilitate communication of safety-of-flight issues to the community 
and would enable subsequent owners and operators to address safety-of-
flight issues. Reporting safety-of-flight issues would also assist FAA 
in discovering product hazards, compliance issues, and identifying 
risks of injury. A manufacturer of the UAS that has received 
airworthiness acceptance reporting would be a timely and effective 
source of information because manufacturers often learn of potential 
product safety problems at an early stage of the product's life cycle. 
Following a discovery of noncompliance, FAA proposes in Sec.  
108.740(b)(3) the manufacturer of the UAS that has received 
airworthiness acceptance must develop a process for notifying FAA and 
all owners of all safety issues and noncompliance, including their 
planned resolution. The notification to FAA would describe the nature 
of the noncompliance and how the manufacturers of the UAS that has 
received airworthiness acceptance plans to address it.
    Notification to owners of that UAS is a critical step in ensuring 
COS. Such notification could take the form of a notice on a 
manufacturer's website, electronic notification to owners who have 
registered the UAS with the manufacturer of the UAS that has received 
airworthiness acceptance, or an update to the software used for the 
UAS, which advises the operator of the change in status. Manufacturers 
should exercise diligence to ensure the intended audience receives 
communications involving any safety-of-flight issues that would impact 
the UA part 108 operations.
    Routine BVLOS operations of UAS of various sizes and capabilities 
for various

[[Page 38302]]

operational purposes are likely to reveal safety issues related to 
design, maintenance, and training that require resolution to ensure the 
safety of the NAS. Manufacturers supporting their UAS designs through 
implementation of a COS program are more likely to identify potential 
safety issues and implement effective strategies for resolving the 
safety issue before becoming prevalent throughout the fleet of UAS, 
increasing the overall safety of the NAS.

L. Inspections and Audits (Sec.  108.745)

    While FAA would rely on a manufacturer's DOC as evidence of 
compliance to the design, production, test, and inspection requirements 
of subparts G and H of part 108, FAA proposes in Sec.  108.745(a) that 
each manufacturer of the UAS that has received airworthiness acceptance 
must, upon request, allow FAA to inspect its facilities, technical 
data, reports, any manufactured UA in their possession, and any other 
necessary information to verify compliance with this subpart. While FAA 
will rely on the DOC, there may be circumstances, such as incidents or 
accidents, that warrant FAA to closely review the manufacturer's 
facilities or information. This access enables FAA to take the actions 
necessary to verify unsafe conditions have been properly addressed or 
respond to an accident or incident. In addition, this access enables 
FAA to ensure compliance with the part 108 airworthiness requirements.
    Section 108.745(b) further proposes that any manufacturer of the 
UAS that has received airworthiness acceptance must allow FAA to 
witness tests to determine compliance with part 108. Due to the rapidly 
evolving nature of the UA industry, consensus standards may require new 
test methodologies. In an effort to verify that the methods of 
compliance (in this case, tests) meet the airworthiness requirements, 
FAA may require access to, among other things, witness these tests, 
evaluate their results, conduct oversight, and audit compliance with 
applicable standards.
    Section 108.745(c) proposes that any manufacturer of the UAS that 
has received airworthiness acceptance must submit to independent 
inspections or audits by voluntary consensus standards bodies, or their 
delegates, who is standard the manufacturer used in submittal of the 
DOC, in accordance with an FAA-accepted MOC. Further, Sec.  108.745(d) 
proposes that the manufacturer of the UAS that has received 
airworthiness acceptance must, upon request, make available the results 
of any independent inspections or audits to FAA.
    While FAA retains the ability to inspect and witness tests, 
independent inspections and audits by voluntary consensus standards 
bodies are also necessary. Independent inspections or audit programs 
ensure provisions of the consensus standard comply with regulatory and 
procedural requirements. Submitting to independent audits ensures 
standards being used as MOCs are being applied in a way intended by the 
voluntary consensus standards bodies. Independent audits also allow a 
voluntary consensus standards body to assess the accuracy and 
effectiveness of standards being used as an MOC. If shortfalls are 
found in the standards themselves or in the way they are being used, 
the voluntary consensus standards bodies will have the information 
needed to effectively update their standards to ensure compliance with 
the regulations are being satisfactorily demonstrated.
    By providing an impartial evaluation of a manufacturer's practices, 
and adherence to regulatory standards, these audits unveil insights 
into risk management, potential inefficiencies, and areas for 
improvement. This provides assurance that manufacturers comply with the 
requirements of subparts G and H. Independent audits enhance the 
quality of declarations of compliance and safeguard the interests of 
all stakeholders, which contributes to the overall safety of flight 
operations. Providing access to the results of these independent audits 
and inspections to FAA ensures that FAA can take any necessary 
corrective action regarding either an accepted standard or an 
airworthiness acceptance.

M. Design Changes (Sec.  108.750)

    Incorporating new design elements may require a change to the UA or 
AE design that already has FAA airworthiness acceptance. Section 
108.750(a) proposes that only the manufacturer of the UAS that has 
received airworthiness acceptance may make design changes to the UAS. 
Design changes are considered changes to the technical data that 
defines the UAS design, configuration, or performance. It is possible 
that a manufacturer would become aware of the need for design changes 
from a variety of sources (such as incidents, accidents, market 
surveys, etc.). The manufacturer must evaluate proposed design changes 
for effects on compliance prior to implementation of the design change. 
FAA expects voluntary consensus standards organizations to develop 
standards to provide a process for demonstrating that the change and 
areas affected by the change comply with the applicable requirements of 
part 108. Only the manufacturer has the necessary UAS technical data to 
determine compliance with the design, production, and test requirements 
of subparts G and H and is the entity that submitted the DOC with those 
requirements.
    Any design change must result in a configuration that is shown to 
be compliant to the requirements of this part. To ensure design changes 
to the UAS are implemented properly by the manufacturer, proposed Sec.  
108.750(b) states any design change to a UAS with FAA airworthiness 
acceptance would need to have demonstrated compliance with the 
requirements of subparts G and H using an MOC.
    Proposed Sec.  108.750(c) requires all documentation affected by 
the design change be updated to maintain control of the configuration 
following the design change. Affected documentation should include the 
operating instructions, maintenance instructions, and the configuration 
control document. The manufacturer of the UAS that has received 
airworthiness acceptance should evaluate the level of the design change 
and determine how any planning, implementation, and supporting 
documentation will be affected by the change.

N. Repairs and Alterations (Sec.  108.755)

    Section 108.755(a) proposed that the manufacturer of the UAS that 
has received airworthiness acceptance must authorize any repair or 
alteration under Sec.  108.625. The manufacturer is expected, pursuant 
to proposed to proposed Sec.  108.755(b), to evaluate the details of 
any proposed repair or alteration for effects on compliance with the 
applicable requirements of subparts G and H and must not authorize any 
repair or alteration that does not result in continued compliance with 
the applicable requirements. FAA maintains that under part 108, the 
manufacturer is uniquely positioned as the entity with comprehensive 
knowledge of the system and access to proprietary information, making 
them the only qualified entity to confirm that conformance to subparts 
G and H remains intact. This approach guarantees that any repairs or 
alterations uphold the UA's airworthiness by consistently adhering to 
the requirements specified in subparts G and H. Further, requiring the 
manufacturer of the UAS that has received airworthiness acceptance to 
authorize repairs or alterations could also act as a deterrent to the 
operator in making beneficial modifications or using third-party 
components that might improve performance or cost-efficiency

[[Page 38303]]

but result in non-compliance with regulatory requirements. FAA invites 
comments on this approach and suggestions for potential alternatives.
    Where a UAS undergoes a repair or alteration that affects the 
flight characteristics or demonstrated reliability, FAA proposes Sec.  
108.755(c) to ensure a UAS is tested in accordance with the testing 
requirements of subpart H. FAA anticipates that certain repairs and 
alterations will necessitate comprehensive testing, whereas others may 
demonstrate compliance through alternative means, such as analysis or 
bench testing. For example, a repair to a damaged fuselage or wing 
assembly may have different testing requirements then a software 
alteration.
    Since the effects of a repair or alteration can vary, FAA cannot 
list all possible repairs and alterations that will affect the flight 
characteristics or reliability. However, a repair or alteration that 
does affect flight characteristics or reliability could fail to conform 
with subpart G and H. FAA expects industry to identify when additional 
developmental and function and reliability testing would be necessary 
to demonstrate compliance with subparts G and H in any MOC proposed for 
FAA acceptance.

O. Record Retention (Sec.  108.760)

    Section 108.760(a) proposes that each manufacturer who submits a 
DOC would need to retain and make available to FAA, upon request, all 
supporting information used to demonstrate compliance with the 
requirements of subparts G and H. Supporting information may include, 
but would not be limited to, relevant documentation such as test plans, 
test results, compliance data, flight logs, and any other technical 
data used to show compliance.
    Technical data could consist of the drawings and specifications 
necessary to define the configuration and the design features of the 
UAS, information on dimensions, materials, software, and processes 
necessary to define the structural strength of the UAS, the list of 
flight essential parts including maintenance and inspection 
instructions or life limits, and any other data necessary to determine 
airworthiness or noise characteristics. In the event of a safety issue, 
or if FAA initiated an action to address a compliance issue, this 
information would be critical to determine the cause, scope, and 
severity of the safety issue or non-compliance.
    Section 108.760(b) further proposes that any manufacturer who 
submits a DOC for a UAS must retain the information described in 
proposed Sec.  108.760(a) for two (2) years following the cessation of 
support for the COS of the UAS listed on the DOC. The ability to access 
detailed records, particularly regarding compliance and configuration 
control, enables swift identification and resolution of potential 
safety concerns or compliance issues. By providing FAA with access to 
this data, any investigation, audit, or review can be conducted more 
efficiently, ensuring rapid responses to emerging safety concerns, and 
maintaining the safety of the NAS. The 2-year retention policy conforms 
to the precedent set forth with FAA's Operations of Small Unmanned 
Aircraft Systems Over People final rule published January 15, 2021, 
which required a person who submits a DOC to retain and make available 
to FAA all supporting information used to demonstrate compliance for 
two years after the cessation of production in Sec.  107.165. Since FAA 
expects UAS with airworthiness acceptance under part 108 will be used 
more than two (2) years following the end of production, FAA proposes 
for part 108 that the record retention period would extend two years 
from when the UAS is no longer supported by the manufacturer's COS 
program.

P. Rescission (Sec.  108.765)

    Compliance is an ongoing process. As such, FAA maintains its 
authority to continuously evaluate that an MOC satisfies the applicable 
regulatory requirements and may, as a result of an audit, data 
analysis, reports from operators, or other information, rescind 
acceptance of an MOC.
    Use of voluntary consensus standards bodies' processes to develop 
MOC to performance-based regulations provides both FAA and industry 
with a means to rapidly adapt to changing technology and better respond 
to market conditions while continuing to enable safe operations within 
the NAS. However, there is no assurance that a MOC, once accepted, will 
continue to enable safe operations within the NAS. As such, Sec.  
108.765(a) proposes a regulatory provision allowing FAA to rescind a 
MOC.
    Under this proposal, FAA would exercise its authority to rescind 
its acceptance of a MOC if FAA determines that a MOC does not meet any 
or all of the requirements of subparts G and H. FAA does not anticipate 
exercising this option frequently, as FAA typically collaborates with 
industry in the development of acceptable standards. If FAA determines 
a standard no longer meets the requirements of this rule, FAA would 
rescind the acceptance of the MOC by publishing a notice of rescission 
in the Federal Register. An identified safety issue, stemming from a 
MOC that is deficient, could lead to a non-compliance resulting in UAS 
incidents or accidents. Therefore, FAA finds it critical that a process 
for rescinding acceptance of a MOC is included in proposed 108 rule to 
ensure all FAA-accepted MOC provide the most comprehensive methods of 
complying with the requirements of subparts G and H. Rescinding a MOC 
for any potential hazard or noncompliance with subparts G and H does 
not automatically lead to rescinding the airworthiness acceptance of a 
UAS, resulting in the UAS being ineligible for flight operations. The 
decision to rescind a MOC depends on the potential effects on safety of 
flight, and each case will be handled individually. If a MOC proves 
insufficient, FAA may proceed by rescinding airworthiness acceptances 
which relied on the rescinded MOC for compliance. In addition, 
manufacturers of UAS whose airworthiness acceptance have been 
rescinded, based on a rescission of a MOC, can revise their design to 
comply with an FAA-accepted MOC and submit a new DOC.
    As routine BVLOS operations under part 108 occur, FAA may receive 
information of a safety issue or non-compliance through audits, data 
analysis, reports, from UAS operators and manufacturers, or other 
sources. To ensure UAS with airworthiness acceptance continue to meet 
design and performance requirements, FAA proposes procedural rules to 
govern rescission of FAA airworthiness acceptance. Section 108.765(b) 
identifies the reasons FAA may rescind a manufacturer's airworthiness 
acceptance for any non-compliance or safety concern related to the 
design, manufacture, or performance of any UAS declared compliant with 
subpart G and subpart H. Proposed Sec.  108.765(c) states that the 
proposed rescission process would include FAA notifying the 
manufacturer of the UAS that has received airworthiness acceptance of 
the proposed rescission. Section 108.765(c)(1)-(4) proposes that the 
notice would set forth the Agency's basis for the proposed rescission 
and provide the manufacturer 30 calendar days to submit evidentiary 
information to refute the proposed rescission. FAA would initiate 
rescission of an airworthiness acceptance if the manufacturer's UAS no 
longer complies with the design and performance requirements of subpart 
G and subpart H, or if FAA finds any information provided by the 
manufacturer on their

[[Page 38304]]

DOC is no longer true. The objective of the proposed rescission is to 
inform the manufacturer of the safety issue or non-compliance, provide 
FAA's basis for the proposed rescission, and provide an opportunity for 
the manufacturer to resolve it. An unresolved safety issue or non-
compliance has the potential to cause incidents or accidents leading to 
possible injury. A manufacturer of the UAS that has received 
airworthiness acceptance who fails to resolve or respond to FAAs 
proposed rescission will have their FAA airworthiness acceptance 
rescinded, which rescinds airworthiness acceptance of the UAS. A UAS 
with a rescinded airworthiness acceptance is no longer eligible to 
conduct part 108 operations; therefore, it is in the manufacturer's 
best interest to either refute or resolve the non-compliance or safety 
issue within the 30-day period proposed in Sec.  108.765(c)(2) to the 
satisfaction of FAA to avoid rescission of the airworthiness acceptance 
of the UAS. The 30-day period is established based on public comment to 
the Operations Over People rule, and FAA has determined the same 
rationale applies here.
    Section 108.765(d) would also propose an emergency rescission 
process for an FAA airworthiness acceptance. Prior to rescission of 
airworthiness acceptance, FAA would typically initiate the notification 
process in Sec.  108.765(c) with the manufacturer of the UAS that has 
received airworthiness acceptance. However, if FAA determines that an 
emergency exists and public safety requires an immediate rescission of 
an airworthiness acceptance, FAA would be able to exercise its 
authority under 49 U.S.C. 46105(c) to issue an emergency order 
rescinding an airworthiness acceptance.
    Under these circumstances, rescission would go into effect 
immediately, without FAA initiating the notification process or the 
rescission procedures previously described. The order would remain in 
effect until the basis for issuing the order no longer exists. However, 
an emergency order would be considered a final agency decision; as 
such, a manufacturer may appeal the decision.

XI. Design and Testing Requirements for Airworthiness Acceptance 
(Subpart H)

A. General (Sec.  108.800)

    Subpart H includes FAA's proposal related to defining performance-
based design, production, and airworthiness requirements for UAS 
operating under this part. Subpart H is intended to provide clear 
direction to voluntary consensus standards bodies regarding consensus 
standards they will propose as a MOC to meet regulatory requirements. 
FAA expects that this would facilitate more rapid development of these 
consensus standards. It would also result in more accurate and 
comprehensive consensus standards that are better able to address the 
design, production, and airworthiness requirements for airworthiness 
acceptance of UAS.
    To receive airworthiness acceptance under part 108, the 
manufacturer would be required to comply with all the requirements in 
subparts G and H. The only way for a manufacturer to ensure compliance 
with the airworthiness design and performance requirements in part 108 
would be to comply with a consensus standard developed by a voluntary 
consensus standards body and accepted by FAA as a MOC. For compliance 
with noise requirements, manufacturers would be able to comply through 
FAA-approved consensus standards or other procedures specified in part 
36. Manufacturer compliance with the performance-based design, 
production, and airworthiness requirements proposed in subparts G and H 
is necessary to ensure the safety of a wide range of UAS that may be 
accepted under this proposal. FAA expects that compliance with these 
proposed requirements would reduce the occurrence of loss of flight and 
loss of control, resulting in UA that are safe for their intended 
operations. Loss of flight means a UA's inability to complete its 
flight as planned, up to and through its originally planned landing. 
Loss of flight includes scenarios where the UA experiences controlled 
flight into terrain, obstacles, or any other collision, or a loss of 
altitude that is severe or non-reversible. Loss of control means an 
unintended departure of an aircraft from controlled flight. It includes 
control reversal or an undue loss of longitudinal, lateral, and 
directional stability and control. It also includes an upset or entry 
into an unscheduled or uncommanded attitude with high potential for 
uncontrolled impact with terrain. A loss of control means spin, loss of 
control authority, loss of aerodynamic stability, divergent flight 
characteristics, or similar occurrence, which could generally lead to 
crash. These definitions for ``loss of flight'' and ``loss of control'' 
are consistent with airworthiness criteria used during the Durability 
and Reliability type certification process.\133\
---------------------------------------------------------------------------

    \133\ Airworthiness Criteria: Special Class Airworthiness 
Criteria for the Matternet, Inc. M2 Unmanned Aircraft and 
Airworthiness Criteria: Special Class Airworthiness Criteria for the 
Percepto Robotics, Ltd. Percepto System 2.4 Unmanned Aircraft.
---------------------------------------------------------------------------

    FAA proposes Sec.  108.800 which identifies the purpose of subpart 
H and identifies what UAS are eligible for airworthiness acceptance. To 
be eligible for airworthiness acceptance, as proposed in Sec.  
108.800(b), the UAS would need to meet three criteria. First, the UAS 
would need to meet the requirements of subparts G and H of part 108. 
Second, the UA would not be able to be an airship. Third, the UA cannot 
be designed to allow for any person on board during operations.
    The first criteria is self-explanatory in that the UAS needs to 
meet the requirements of subparts G and H. This requirement mitigates 
common hazards associated with UAS operations and ensures a design that 
can operate safely in the NAS. This also ensures that the UAS complies 
with the noise standards applicable to that UAS.
    Subpart H would not allow for airships to be eligible for 
airworthiness approval under part 108. This is because UA operating 
under part 108 would be required to cede right-of-way to other aircraft 
which are broadcasting ADS-B Out, per proposed Sec.  108.195. The low 
speed and relatively long response times to control inputs make it 
unlikely that an airship would be able to maintain safe separation by 
avoiding detected aircraft. Finally, subpart H does not allow an 
aircraft to be designed for carriage of crew or passengers. FAA wished 
to preclude any manufacturer from using part 108 to circumvent the 
experimental airworthiness certification process, under part 21, for 
passenger carrying aircraft. If a person is aboard the aircraft, the 
determination and mitigation of risk changes significantly. To allow 
for operations as written in this part while maintaining the level of 
design and operational rigor defined in part 108, no person can be 
allowed on a UA operating under part 108.

B. Size, Weight, and Speed (Sec.  108.805)

    FAA proposes Sec.  108.805 which identifies size, weight, and speed 
design limitations for UA. To be able to obtain an airworthiness 
acceptance the UA design would need to meet three criteria. First, the 
UA's wingspan or lateral span would not be able to exceed a lateral 
span of 25 feet. Second, the UA would not be able to exceed a maximum 
weight of 1,320 pounds (600 kilograms) gross weight, including anything 
attached to or carried by the aircraft. Third, the UA would not be able 
to

[[Page 38305]]

exceed 87 knots ground speed during normal operations.
    When determining the size of UA that can safely operate in the NAS, 
the risk to persons and property on the ground, or ground risk, must be 
considered. The ground risk of an aircraft is determined by assessing 
the combination of aircraft reliability and consequence of failure. To 
limit the maximum consequence of failure, the total crash area of the 
aircraft must be limited. A maximum wingspan or lateral span of 25 feet 
was selected to limit the number of people within a potential crash 
area, thereby limiting ground risk. FAA is leveraging industry 
standards such as ASTM F3442/F3442 and RTCA MOPS for ACAS sXu when 
selecting the 25 feet maximum wingspan or lateral span. This span would 
provide consistent boundaries when defining DAA parameters.
    As discussed in section X.A, FAA considered the BVLOS ARC 
recommendation and part 107 operations when determining weight and 
speed design limits for airworthiness acceptance under part 108. The 
maximum gross weight of an aircraft, including anything attached to or 
carried by the aircraft, operating under part 108 would be set at 1,320 
pounds (600 kilograms), within the BVLOS ARC recommendations and JARUS 
limitations based on maximum kinetic energy.\134\ Likewise, under part 
107, UAS maximum operational speed is limited to 87 knots or less 
during normal operations. Positive service experience under both part 
107 and under BVLOS operating exemptions has been gained for aircraft 
operating at ground speeds up to 87 knots. Based on this experience, 
and lacking data on the effects of increased speeds, FAA has determined 
87 knots or less would be an appropriate limitation for UAS operating 
under part 108. A manufacturer may seek regulatory relief from any of 
these UA criteria.
---------------------------------------------------------------------------

    \134\ JAR-DEL-SRM-PDRA-05, Pre-Defined Risk Assessment, PDRA-05, 
for Aerial Work Operations.
---------------------------------------------------------------------------

C. Simplified User Interaction (Sec.  108.810)

    Simplified user interaction (SUI) aims to make flying safer, 
simpler, and more accessible by using automation to simplify UA 
operation for flight coordinators while maintaining safety. SUI 
automates the tasks that are most error prone, need constant practice, 
and can distract the flight coordinator. This automated approach offers 
safety and economic benefits.
    SUI is intended to streamline operations, reduce loss of control 
incidents, and eliminate the need for advanced flight training. Based 
on granted exemptions and VLOS operations under part 107, FAA 
recognizes the increased use of SUI by industry through these existing 
operating approvals.\135\ The proposed SUI requirements leverage 
current design practices to further automate UAS operations. FAA is 
embracing these technologies as the next path forward in integrating 
UAS into the NAS.
---------------------------------------------------------------------------

    \135\ Exemption 18339D, 19111B, 19398A, 21097, and 22003.
---------------------------------------------------------------------------

    Proposed Sec.  108.810 would require design and performance 
requirements for UAS to exhibit highly automated features and 
functions. This requirement is necessary for BVLOS as it would enhance 
the safety of UAS operations by replacing direct manual control of the 
UA with automated controls. Flight controller access is limited to 
high-level inputs, which are implemented by the automated control 
system of the UA. SUI is especially important for enabling one-to-many 
flight operations as the task of actively controlling multiple aircraft 
simultaneously would require exceptional piloting skill.
    This requirement for SUI features would not permit ``pilot in the 
loop'' designs that rely on manual control where the flight coordinator 
is responsible for providing inputs through devices such as rudder 
pedals, a stick, yoke, or throttles, to include hand controllers with 
joysticks that are popular among hobbyists. Pilot in the loop controls 
such as push buttons, knobs, and touch screens would only be permitted 
to enable the flight coordinator to execute simple commands, such as 
changes in airspeed, altitude, and heading. Proposed Sec.  108.810(a) 
would require consistent and predictable controllability, stability, 
and maneuverability using automated flight controls, not relying on 
manual flight control inputs. This consistency and predictability 
should be demonstrated through repeatable, smooth transitions between 
turns, climbs, descents, and level flight throughout the flight 
envelope and operating environment limits. Designs that demonstrate 
consistency and predictability throughout the flight envelope will 
enable accurate assessment of performance and reliability during 
testing. Further, proposed Sec.  108.810(a) would require that 
controllability, stability, and maneuverability be met at all flight 
and ground loading configurations within the UA's prescribed weight 
limits. Changes to flight and ground load configurations, such as 
changes to attitude, releasing payload, transitioning from VTOL to 
forward flight, should not cause UA controllability, stability, and 
maneuverability to be inconsistent or unpredictable. Furthermore, the 
UAS's automated flight envelope and path protection systems should be 
taken into consideration when analyzing (including test conditions) 
compliance to the controllability and maneuverability requirements. The 
UA should have the necessary flight stability to prevent loss of flight 
during normal, abnormal, and emergency procedures shown by natural or 
artificial means, or a combination of both. Some examples of abnormal 
or emergency scenarios include collision avoidance, aborted missions, 
power system failures, and forced landings.
    Proposed Sec.  108.810(b) would require UA designs that are 
resistant to operation outside of the flight design envelope during any 
phase of flight. To be resistant to operations outside of the flight 
design envelope, the UAS should have the capability to maintain dynamic 
stability, regardless of external forces, under all foreseeable 
conditions, including failure conditions. Designs that would allow an 
aircraft to operate beyond its demonstrated limits could result in loss 
of control which could jeopardize the continued safe flight and landing 
of the UA.
    Proposed Sec.  108.810(c) would require prevention of loss of 
control of the UA due to degradation or nonavailability of external 
services, systems, operator input, or signals. The UAS should have 
capabilities and necessary features to control the aircraft in the case 
of a loss of external services, such as third-party services, used in 
communicating, controlling, or providing system inputs to the UA. The 
design must incorporate contingencies accounting for loss of services 
or functions that ensure safety of the NAS and people on the ground.
    Proposed Sec.  108.810(d) would require the UAS to have a means to 
discontinue flight as soon as practicable without creating a safety 
hazard. An operator may need to discontinue or suspend a flight for a 
variety of reasons such as unexpected weather conditions, a system 
malfunction, or the presence of other hazards such as a flock of birds 
or an aircraft near, or intersecting, the route of flight. 
Discontinuing or suspending a flight may include options such as an 
immediate landing, a return flight to the UA's point of departure, a 
diversion to an alternate landing site, a course change, or in-place 
hover until any hazards have passed. The UAS should be equipped with 
features that allow for the flight controller to

[[Page 38306]]

interrupt, abort, or command an emergency landing during all phases of 
flight. This capability to discontinue flight must provide the ability 
to have the aircraft take appropriate action as soon as practicable 
while maintaining safety and not creating a possible additional safety 
hazard. The capability of discontinuing flight would ensure that 
potential damage to other aircraft, property, or people is prevented 
should an adverse situation arise, such as erroneous behavior of the 
UA. The flight discontinuation capability would allow for the UA to be 
redirected by the operator, in the event of an emergency, as when 
called upon by national and local airspace governing agencies.
    To prevent a safety hazard associated with unnecessary landings, 
any design which discontinues flight should prevent inadvertent 
activation. It should also be designed such that false positives, 
incorrectly entered data, and other human errors do not cause 
inadvertent activation.

D. Signal Monitoring and Transmission (Sec.  108.815)

    Proposed Sec.  108.815(a) would require that the UA be designed so 
that it can receive from and transmit to AE all information that is 
required for continued safe flight and operation. The ability of a UA 
to engage in two-way communication with its AE is important for the 
safety of flight operations. This bidirectional flow of information 
enables real-time flight adjustments, which can be essential given the 
dynamic nature of the NAS. It allows UAs to respond promptly to changes 
in air traffic, no-fly zones, or adverse weather conditions. Continuous 
communication also permits remote monitoring and control by flight 
coordinators, who can proactively address potential issues, maintaining 
the UA's optimal condition and preventing safety hazards. Maintaining a 
two-way communication between UA and AE is foundational to ensuring 
their responsiveness, adaptability, and full control throughout the 
flight. Examples of such information may include position and location 
information, weather data, or aircraft health status.
    Proposed Sec.  108.815(b) would require the UAS design to execute a 
safe predetermined action in the event of a link timeout. During lost 
link events it is important for the UA to respond with an appropriate 
safe predetermined action, thereby minimizing risks to other users of 
the NAS during flight operations. This requirement ensures that the UA 
is equipped to handle such disruptions safely and efficiently. The 
operating instructions in proposed Sec.  108.720 would address all 
options and capabilities of the UA for contingency responses. In the 
proposed MOC to these requirements, FAA expects industry to define and 
standardize safe predetermined actions such as return to home, loiter, 
continue flight, etc. a UA could execute during a link timeout event. 
There may be multiple acceptable safe predetermined actions, but the 
predetermined actions should be standardized based on the category of 
permitted or certified operation. Further, FAA also expects industry to 
define the link timeout metric as part of any proposed MOC, as it may 
be variable based on the type of permitted operations and associated 
ground and air risks. As part of this link timeout metric, FAA expects 
both uplink and downlink timeouts to be addressed.

E. Position, Navigation, and Timing (Sec.  108.820)

    Proposed Sec.  108.820 states that the UA would need to be capable 
of sustaining position, navigation, and timing with accuracy to 
maintain a safe distance from other aircraft in the airspace in which 
the UA operates. Position, navigation, and timing (PNT) work together 
as an integrated system to support safe UA operation within the NAS. A 
UA typically determines its position by receiving signals from 
satellites or ground-based systems, navigates by calculating its path 
and movements relative to that position, and uses precise timing to 
synchronize these processes. Accurate PNT is necessary for effective 
conformance monitoring or collision avoidance systems.
    PNT data from a UA supports the safe coordination of airspace with 
other users of the NAS. Discrepancies in the UA's navigational data can 
complicate the process of deconflicting airspace, increasing the risk 
of close encounters with other NAS users. Furthermore, inaccuracies may 
lead other users, particularly those utilizing UTM systems, to 
underestimate the proximity of a UA, potentially resulting in unsafe 
situations. The UAS must further represent its PNT with a minimal 
margin of error because a UAS that incorrectly represents its position 
poses a heightened risk of colliding with other aircraft or obstacles. 
By ensuring PNT accuracy, a UA can maintain safe distance from other 
NAS users and facilitates a well-coordinated flight environment.

F. Collision Avoidance (Sec.  108.825)

    Proposed Sec.  108.825 will require all UAS obtaining airworthiness 
acceptance to have the capability to avoid aircraft in accordance with 
proposed Sec.  108.195. Proposed Sec.  108.195 provides the operating 
requirements for avoiding collisions with aircraft departing from or 
arriving at an airport or heliport or equipped and broadcasting their 
position using ADS-B Out or electronic conspicuity equipment.
    Typically, a collision avoidance system should incorporate two 
aspects. First, the ability to identify a hazard should have the 
fidelity and range to identify heading, position, and airspeed for 
aircraft with sufficient time to allow action to be taken to maintain 
safe distance. Second, the UA should have flight performance 
characteristics throughout its documented flight envelope and operating 
environment limitations that are sufficient to maintain safe distance 
from those aircraft.
    Providing a means of detecting aircraft is an important component 
in avoiding midair collisions. Any procedures associated with collision 
avoidance must be contained in the operating instructions required by 
Sec.  108.720(a)(1).

G. Anti-Collision Lighting Requirements (Sec.  108.830)

    Proposed Sec.  108.830(a)(1) and (2) would require installation of 
anti-collision lighting, which, when illuminated, must be visible for 
at least 3 statute miles when operating at night. This intensity is 
aligned with current manned aviation practices and based on positive 
history in manned aviation, this intensity supports collision avoidance 
with aircraft not equipped with ADS-B Out. This requirement also aligns 
with the anti-collision lighting requirement in 107.29(b) for small UA. 
Proposed Sec.  108.830(a)(3) would require that the anti-collision 
lights need to have a flash rate, colors, and fields of coverage that 
enhance visibility. Establishing flash rates, colors and fields of 
coverage would enhance the visibility of UA for other aircraft 
operating in the NAS. FAA is proposing that these parameters remain 
performance-based so adequate adjustments to the parameters can be made 
as technology develops to enhance visibility.
    Consensus standards bodies should define consistent parameters for 
anti-collision lights to identify UAS operating in the airspace, 
distinguish from other lights in the area such as cell phone towers and 
streetlights, and allow for a safe distance to be maintained. These 
lights would serve as a key safety feature to increase the visibility 
of UA to other aircraft, pilots, and air traffic controllers in the 
vicinity. This enhanced visibility helps to prevent midair collisions, 
close encounters, and

[[Page 38307]]

other incidents that could endanger both UA and manned aircraft 
operating in the same airspace. By providing a clear indication of the 
UA's presence, position, and trajectory, lighted anti-collision 
lighting enables other airspace users to maintain safe distance.
    Section 108.830(b) proposes the design may allow for the 
deactivation or reduction of intensity of the anti-collision lights in 
accordance with proposed Sec.  108.250(c). Allowing the operator to 
deactivate or adjust the intensity of anti-collision lighting is based 
in safety. In diverse UAS operational environments, full-intensity 
lighting can, at times, be counterproductive. For instance, in foggy 
conditions, intense lighting may cause glare, posing risks to other 
pilots. Similarly, during specialized operations like nighttime flights 
in populated areas or near wildlife, a deactivation or reduction of 
intensity can prevent undue disturbances.

H. Position Lighting Requirements (Sec.  108.835)

    Section 108.835 proposes that UA with a lateral span of at least 96 
inches would need to be equipped with position lights that meet certain 
specifications or would need to have operating instructions that 
include a limitation prohibiting night operations. Position lights 
serve a key role in ensuring an aircraft's visibility, allowing other 
airspace users to accurately discern its location, orientation, and 
trajectory during night hours. Without these lights, the risk of 
collisions increases, as the ability for visual identification and 
spatial awareness among pilots and operators can be compromised. The 
requirements proposed in Sec.  108.835 are consistent with manned 
aviation requirements and would ensure UAS position lighting standards 
match all other aircraft in the NAS.
    Section 108.835(a) proposes that, to ensure their effectiveness, 
the installation of left and right position lights would be required on 
both sides of the aircraft. These lights would need to be positioned as 
far apart as possible to maximize their visibility. When the aircraft 
is in its normal flying position, the red light would be on the left 
side, while the green light would be on the right side. This 
arrangement would help pilots and other airspace users identify the 
aircraft's direction and orientation during flight. FAA suggests that 
for UA with a lateral span of less than 96 inches it would be 
impractical to differentiate red and green position lights from each 
other, complicating the determination of the direction of travel. This 
could limit a pilot of a manned aircraft's reaction time, potentially 
not allowing adequate time for corrective measures to prevent a 
collision. FAA invites comments related to the lateral span lighting 
proposal.
    In addition to the left and right position lights, Sec.  108.835(a) 
proposes to require a white light mounted on the aft portion of the 
aircraft or on the wingtip. The rear position light enhances the 
aircraft's visibility from behind, ensuring that other airspace users 
can maintain proper situational awareness and avoid potential 
collisions.
    By adhering to these positioning and color requirements, which are 
common to most aircraft operating in the NAS, part 108 aircraft can 
contribute to a safer, more coordinated, and efficient operational 
environment for all users in the airspace. Section 108.835(b) proposes 
that, if an aircraft is not equipped with position lights, an operating 
limitation prohibiting night operations would need to be included in 
the operating instructions in proposed Sec.  108.720(a)(1). 
Implementing such a limitation in the operating instructions ensures 
clear communication of operational boundaries. This operating 
limitation aims to maintain a high standard of safety in night flying 
conditions, safeguarding not only the UA but also the overall airspace 
for other users.

I. Power Generation, Storage, and Distribution System (Sec.  108.840)

    The power generation, storage, and distribution system in a UAS 
plays an important role in its overall functionality and safety. This 
includes powering essential flight control systems, navigation aids, 
communication devices, associated elements, and any payload-specific 
equipment. The integrity of this system is vital for continuous, safe 
flight operations, as it ensures that all components receive the 
necessary power to function correctly throughout the flight. Therefore, 
proposed Sec.  108.840(a) would require that the UAS be designed to 
provide power for all connected electrical loads.
    Proposed Sec.  108.840(b) would require that the power generation, 
storage, and distribution system be able to ensure that no single 
failure or malfunction of this system would result in loss of flight or 
loss of control. This requirement emphasizes the necessity for an 
electrical system designed with redundancies and safeguards to prevent 
or minimize the impact of failures or malfunctions. By ensuring the 
reliability of the power system, the UAS is better equipped to maintain 
safe operation, even in the face of unexpected failures, thereby 
preventing loss of flight, loss of control, or compromising safety.

J. Propulsion System (Sec.  108.845)

    Section 108.845(a) proposes that the propulsion system would need 
to have the necessary reliability, durability, and endurance for safe 
flight without failure, malfunction, or excessive wear, throughout the 
expected life cycle of the propulsion system. A propulsion system 
failure or malfunction can lead to a sudden loss of thrust or lift, 
which is essential for maintaining the aircraft's forward motion and 
altitude. Failure of the propulsion system could result in loss of 
flight or loss of control. A reliable propulsion system with the 
durability and endurance throughout the expected life cycle reduces 
loss of flight occurrences and ensures safety of persons and property 
on the ground and other NAS users.
    Section 108.845(b) proposes that the propulsion system would need 
to be designed not to exceed safe operating limits under normal 
operating conditions. Normal operating conditions and operating limits 
would be defined by the manufacturer in the UAS operating instructions. 
Operating limits that cannot be influenced by the flight coordinator, 
such as the maximum rotational speed of a motor, need to be determined 
by the manufacturer and imposed as a limit in the design of the UAS, 
though they may not need to appear in the operating instructions. This 
minimizes the risk of catastrophic failures due to overstressed 
components or systems.
    Section 108.845(c) proposes the propulsion system must be designed 
so that a loss of power or a power failure does not lead to a loss of 
control of the UA. This ensures the UA design has a contingency for 
loss of power and will not result in a failure which could jeopardize 
the safety of the UA and surrounding environment, such as asymmetric 
thrust.
    FAA is not proposing prescriptive propulsion requirements to 
promote continued development, innovation, and improved efficiency of 
UA propulsion systems. FAA anticipates that voluntary consensus 
standards bodies would develop new consensus standards for various 
categories of propulsion systems.

K. Fuel System (Sec.  108.850)

    Section 108.850(a) proposes that, if the UAS is equipped with a 
fuel system, the fuel system design would need to provide a means for 
the safe removal or isolation of fuel from the rest of the UA. To 
prevent fuel leaking or fuel

[[Page 38308]]

contamination, and to provide a means for safely handling and 
transporting the UA on the ground, it must be possible to either remove 
all fuel onboard or ensure it is safely isolated within tanks or lines 
in such a way that the fuel system minimizes the risk of fire. Section 
108.850(b) proposes that UA would need to be designed to retain fuel, 
preventing leaking or fluid buildup, under all likely operating 
conditions. This will reduce the likelihood of a fire by not 
introducing the fuel to an ignition source. Proposed Sec.  108.850(c) 
would require the UA to have ventilation and drainage where flammable 
fluid or vapor may exist. Proper system design accounting for fuel 
retention, ventilation, and drainage prevents the accumulation of 
flammable fluids or vapors. Changes in temperature, pressure, aircraft 
attitude, or acceleration loads are all examples of potential causes of 
leaking or pressure build-up, either of which could be a source of 
fire. By adhering to these requirements, potential fuel-related 
incidents such as leaks or spills that could result in fires or 
explosions are effectively minimized.

L. Fire Protection (Sec.  108.855)

    Proposed Sec.  108.855 would require the incorporation of design 
features that can sustain both static and dynamic deceleration loads 
without resulting in structural damage to the fuel or electrical system 
components or their attachments. In the event that the UA has a hard 
landing or crashes, the design must ensure that such an event will not 
result in structural damage to components of the UA likely to 
contribute to a post-event fire as the deceleration load shifts. 
Examples of components that must meet Sec.  108.855 include fuel tanks, 
fuel lines and fittings, batteries, wiring harnesses, or wiring attach 
points. Fuel and electrical system crashworthiness involve designing 
and testing these systems to demonstrate fuel remains safely contained 
and sources of electrical current remain safely separated from the fuel 
as loads shift. This would ensure that fuel leaks do not reach 
potential ignition sources and that electrical power does not become an 
ignition source, resulting in a post-incident fire. By actively 
implementing such design features, the risk of fire-related incidents 
is significantly reduced, enhancing the overall safety of the UA during 
operation, and protecting lives and property on the ground, or 
safeguarding from other hazards, in the event of an accident.

M. Software (Sec.  108.860)

    Proposed Sec.  108.860(a) would require that all software that may 
affect the safe operation of the UA function properly and have 
dependability. Dependability means the software code produces the 
consequences for which it was written, without adverse effects, in the 
manufacturer defined environment. Essential components and functions of 
the UA, such as propulsion, flight control, navigation, and DAA, are 
controlled by software. Due to software's influence over essential 
components, it is important to minimize the occurrence of software 
errors to ensure its dependability. Therefore, software should be 
designed, verified, and implemented according to standards that confirm 
it dependably fulfills its intended purpose.
    Proposed Sec.  108.860(b) would also require manufacturers to 
track, control, and document any changes made to the software 
throughout the life cycle of the UAS within a configuration management 
system. A configuration management system for software is a set of 
practices and tools designed to manage and track changes in software 
development, ensuring consistency, control, and traceability of each 
version of software components. Such a configuration management system 
would enable manufacturers to maintain the integrity and consistency of 
the software. In addition, proposed Sec.  108.860(c) would require 
manufacturers to capture and record any defects or modifications made 
to the software within a problem reporting system. A problem reporting 
system is a structured tool that facilitates the identification, 
documentation, and tracking of issues or defects. Such a problem 
reporting system would allow for a comprehensive overview of the 
software's status, thereby facilitating continuous improvement efforts. 
Thorough and continuing software development significantly reduces 
software errors, ultimately contributing to a safer and more reliable 
UAS operations and facilitates continuous improvement efforts.

N. Electronic Hardware (Sec.  108.865)

    Proposed Sec.  108.865(a) would require all electronic hardware in 
the UAS to perform its intended functions within the manufacturer-
defined operating and environmental limitations. This requirement would 
ensure consistent system performance and safety by requiring that all 
electronic components operate effectively within their specified 
parameters, under typical usage scenarios. This predictability is 
essential for system integrity, as it allows for the accurate 
assessment and management of risks associated with electronic system 
failures, which could otherwise compromise the safety of the UA.
    Operating limitations may include the boundaries of conditions 
under which the electronic systems are designed to function, including 
variables like voltage, current, and data processing requirements. 
These limitations ensure that the hardware can handle the demands of 
its operational tasks without failure. Operational environment 
limitations consider external factors such as temperature, humidity, 
vibration, and electromagnetic interference that the UAS may be exposed 
to during UA operation. By proposing that electronic hardware withstand 
both sets of limitations, FAA would ensure that UAS would be able to 
operate safely and reliably in diverse conditions, from the physical 
stresses of flight to variations in weather and electromagnetic 
environments.
    Section 108.865(b) proposes that electric hardware must be designed 
and installed so they do not have an adverse effect on the safe 
operation of the UA. An adverse effect on safety would be those effects 
that could negatively impact the safety and airworthiness of the UA. An 
example of potential adverse effects includes the disruption of signal 
integrity through electromagnetic interference, which could stem from 
improper shielding or placement of electronic components. Such 
interference could degrade the performance of navigation and 
communication systems, leading to loss of flight or loss of control. By 
establishing design and installation standards that mitigate these 
risks, this ensures continued safe UAS operations, even in the presence 
of potential sources of electronic interference.

O. Systems and Equipment (Sec.  108.870)

    Section 108.870(a) proposes that a UAS would need to have all 
systems and equipment necessary for safe flight, considering any 
systems or equipment necessary to operate the UAS in the intended 
airspace class or required for the operation. This requirement is 
determined by the class of airspace in which the manufacturer intends 
the UAS to operate and any specific operational demands. For example, 
Sec.  108.180(b) proposes avoiding collisions with aircraft not 
broadcasting their positions using ADS-B Out. Similarly, Sec.  
108.185(d)(5)(ii) which proposes the same requirement as Sec.  108.180, 
but when operating over Category 5 population densities. This

[[Page 38309]]

provision ensures that UAS are prepared and capable of navigating and 
operating safely within their designated operational environments, 
accounting for the complexity and variability of NAS requirements. 
Different classes of airspace have varying levels of traffic density, 
airspace restrictions, and safety considerations which may require 
unique equipment. By ensuring UAS are adequately equipped for their 
intended operational environment, this regulation aims to minimize 
risks of collision and ensure efficient use of airspace.
    Section 108.870(b) proposes that installed systems and equipment 
would need to perform their intended function within the operating 
limitations and environmental limitations for which the aircraft is 
designed. FAA emphasizes that systems and components should be 
evaluated to ensure that any potential failure or malfunction will not 
compromise the UA's control. This holistic assessment approach 
safeguards against systemic vulnerabilities that could lead to 
operational failures. FAA expects systems and components within those 
systems to be considered separately and in relation to each other. As 
with electronic hardware, systems and equipment would need to perform 
throughout the intended operating and environmental limitations. The 
same reasoning given in electronic hardware for why both types of 
conditions need to be accounted for is valid here.
    Section 108.870(c) proposes that no probable failure shall result 
in a hazardous outcome. This requirement is meant to prevent unsafe 
outcomes stemming from individual component failures. Probable failure 
conditions are those failure conditions anticipated to occur one or 
more times during the entire operational life of each UAS.\136\ These 
are not hypothetical or highly unlikely failures but are considered 
within the realm of possibility based on historical data, engineering 
analysis, and operational experience. Probable failures could arise 
from a range of sources, including wear and tear, manufacturing 
defects, design limitations, and other impacts.
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    \136\ JARUS SORA v 2.5.
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    It is important to prevent such failures from leading to a hazard 
such as a loss of flight or control. UAS, like all aircraft, rely on a 
complex interplay of systems and components to operate safely and 
effectively. A failure in one of these systems--be it navigation, 
propulsion, communication, or control--could jeopardize the UA's 
ability to maintain flight or be controlled, leading to potentially 
unsafe outcomes. This could include unintended entry into restricted 
airspace, collisions, or uncontrolled descent, each posing significant 
risks to public safety, property, and the integrity of national 
airspace.
    The proposed requirement set forth in Sec.  108.870(c) is designed 
to ensure that UAS are engineered and maintained to a standard where 
probable failures do not compromise the UA's core operational 
capabilities. This could involve robust design practices, thorough 
testing and evaluation of components and systems, and regular 
maintenance and inspection routines. The objective is to identify and 
mitigate risks associated with probable failures, ensuring that a 
single probable failure does not lead to a hazardous outcome.
    In implementing this requirement, manufacturers should consider 
redundancy, fault tolerance, and fail-safe mechanisms in the design and 
operation of UAs. Redundancy involves the inclusion of systems or 
components that prevent loss of functional capabilities in the event of 
a failure. Fault tolerance refers to the ability of a system to 
continue operating properly in the event of a failure. Fail-safe 
mechanisms are designed to bring the aircraft to a safe state in the 
event of a failure.

P. Cybersecurity (Sec.  108.875)

    To maintain the security and airworthiness of UAS equipment, 
systems, and networks, proposed Sec.  108.875 would require that UAS 
equipment, systems, and networks, addressed separately and in relation 
to other systems, be protected from unauthorized electronic 
interactions.
    Intentional Unauthorized Electronic Interaction (IUEI) refers to 
``a circumstance or event with the potential to affect the aircraft due 
to human action resulting from unauthorized access, use, disclosure, 
denial, disruption, modification, or destruction of information or 
aircraft system interfaces. Note that this includes malware and the 
effects of external systems on aircraft systems but does not include 
physical attacks or electromagnetic jamming.'' \137\ An adverse effect 
on safety would be those effects that could impact the safety and 
airworthiness of the UA and its operation. Protecting against IUEI 
involves systematically preventing, avoiding, and mitigating malicious 
interference with aircraft systems. Unauthorized interference with a 
UAS could have both safety and security impacts.
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    \137\ See FAA Order 8110.107B, Monitor Safety/Analyze Data, page 
2-2 (October 13, 2023).
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    Cybersecurity protection efforts must be informed by standards 
acceptable to FAA. For cybersecurity, there may be acceptable standards 
produced by entities other than voluntary consensus standards bodies. 
Cybersecurity standards and guidelines, such as the Cybersecurity 
Framework developed by National Institute of Standards and Technology 
(NIST), typically promote protection by utilizing a risk assessment 
that demonstrates how security and safety risks associated with IUEI 
are identified and assessed. The risk assessment identifies which 
equipment, systems and networks require protection from IUEI. If a 
cybersecurity risk is identified that can adversely affect the safety 
of the UAS, the manufacturer can then develop mitigation plans and 
provide them to the operator. This would ensure a comprehensive and 
consistent approach to maintaining the safety of the UA's equipment, 
systems, and networks tailored to the risks commensurate with UAS. FAA 
expects that a standard with similar requirements to the NIST 
Cybersecurity Framework would be found acceptable as a MOC for 
cybersecurity. FAA invites comments on cybersecurity standards for UAS.

Q. Associated Elements Design and Performance Requirements (Sec.  
108.880)

    Section 108.880(a) proposes that each associated element would need 
to be designed to perform its intended function under all operating 
conditions specified in the UAS operating instructions. The intended 
function includes both aircraft performance and ability to successfully 
complete the operation for which the aircraft was designed, such as 
small package delivery or agricultural operations. Both the AE, as well 
as the UA itself, must be designed such that the UA operates as 
intended in all expected operating conditions, whether those conditions 
are encountered by the UA or the AE. The operating instructions need to 
include operating limitations of the UAS that address operational 
environment conditions, adverse weather, collision avoidance, 
cybersecurity, lightning, hazardous materials, weight, and balance. 
Operating instructions need to also include normal and abnormal 
procedures likely to be encountered in the intended operations. The UA 
and AE must be integrated in such a way that the AE does not introduce 
additional safety hazards in the NAS. By ensuring the AE can perform 
its intended function throughout its expected range of operating 
conditions, the proposed rule would mitigate these

[[Page 38310]]

potential hazards. For example, if AE includes a launcher, the 
acceleration force imparted on the UA should not exceed its design 
limit. In addition, as proposed in Sec.  108.880(b), any probable 
failure or malfunction of the AE or any of its components must not 
result in a hazard. For the purposes of this proposed rule, a hazard 
would be any condition that could foreseeably cause or contribute to an 
incident or accident. These situations must be mitigated to provide for 
safe operation of the UA.
    Proposed Sec.  108.880(c) requires that the AE would be designed to 
continuously monitor, display, and transmit information required for 
safe flight and operation. This may include, but would not be limited 
to, parameters related to energy storage, propulsion, detection 
systems, flight safety, signal strength, as well as flight and 
navigation information like airspeed, heading, altitude, and location. 
FAA expects an acceptable MOC to identify the relevant information that 
will be displayed for the designated operational purpose.
    To reduce the likelihood of human error when conducting any 
manufacturer-designated operation, the human-machine interface should 
be considered in the development of the AE because AE is typically the 
interface between humans and the UAS. Monitoring and displaying the 
status of critical parameters to the flight coordinator would enable 
successful and efficient management of the UA's flight. These design 
features would contribute to a more reliable, safe, and secure 
operation, ultimately promoting the successful integration of UAS into 
the NAS.

R. Suitability and Durability of Materials (Sec.  108.885)

    Proposed Sec.  108.885 would require the suitability and durability 
of materials used in the UAS to account for the effects of all 
operational and operating environment conditions expected during 
operation. Materials used for aircraft components and structures would 
need to meet the loads and stresses of all operations within the UA's 
flight envelope for the life of the UA or defined maintenance interval. 
The UA should be designed and manufactured with materials that permit 
its structure and components to withstand those stresses likely to be 
encountered. Such stresses could result from wind gusts, temperature 
extremes, humidity extremes, or ground handling. Adhering to material 
specifications and considering the most adverse conditions during 
design would prevent structural failures, which could lead to loss of 
flight or loss of control, throughout its operational life.

S. Operating Environment Conditions (Sec.  108.890)

    Proposed Sec.  108.890(a) would require that the UAS have design 
characteristics to accommodate operating environment conditions likely 
to be encountered during its intended operations. Aircraft systems and 
structures may not function as intended if operating conditions are not 
accounted for in an aircraft's design. Such environmental conditions, 
such as variations in temperature, wind, rain, ice, and humidity, may 
alter the safe operation of a UA. Therefore, if operations are intended 
in these conditions, the UA design would be required to account for 
them. This proposed requirement is necessary to enable UA to be 
properly designed and constructed to conduct safe ground and flight 
operations in the specific operating environments for which the 
aircraft is designated to operate in. UA systems or structure unable to 
accommodate the environment in which it is operating may lead to loss 
of flight or loss of control.
    Under proposed Sec.  108.890(b) in lieu of the requirements of 
Sec.  108.890(a), the UAS would be required to have the capability to 
identify and avoid or exit those conditions the UA is not designed to 
operate. This requirement is intended to restrict flight into known 
environmental conditions in which the UA is not designed to operate. 
This requirement also is intended to either prevent inadvertent flight 
into such conditions or provide a means for detecting those conditions 
for which the UA is not designed to operate. These requirements along 
with the operating instructions ensure the flight coordinator is 
informed about the environmental conditions in which the UAS can be 
utilized.

T. Lightning Protection (Sec.  108.895)

    Proposed Sec.  108.895 would require a UA to either incorporate 
design characteristics that protect the UA from loss of flight or 
control due to lightning strikes or have an operating limitation that 
explicitly prohibits flight operations in weather conditions that are 
conducive to lightning activity. The latter would apply when the 
manufacturer did not demonstrate during developmental testing that the 
UA can withstand lightning strikes. Lightning strikes present a 
significant hazard to the UAS, capable of causing immediate loss of 
flight or loss of control. By ensuring that UAS are inherently designed 
with lightning protection features, this requirement aims to safeguard 
against the primary risks associated with lightning, such as electrical 
system failures, ignition hazards, and structural damage.
    Recognizing the diverse range of UA designs and operational 
capabilities, the proposed regulation offers an alternative for cases 
where it is not feasible for the manufacturer to demonstrate lightning 
protection. In such instances, the UA would be subject to an operating 
limitation, listed in the operating instructions, that explicitly 
prohibits flight operations in weather conditions conducive to 
lightning activity. This approach provides a flexible regulatory 
framework that accommodates the technical and economic constraints of 
developing lightning-protected UAS while ensuring that safety remains 
the paramount consideration. By restricting operations in potentially 
hazardous weather conditions, this operating limitation serves as a 
precautionary measure to minimize the risk of lightning strike 
incidents.

U. Flight Data Recorder (Sec.  108.900)

    Incidents and accidents may result in serious injury or fatality 
for persons on the ground or onboard other aircraft. Fundamental to 
ensuring further incidents or accidents are mitigated is the ability to 
determine root cause and implement any necessary corrective actions. 
The inability to determine root cause and implement corrective actions 
may lead to further incidents and accidents with the same unidentified 
cause.
    Therefore, proposed Sec.  108.900(a) would require that the UA, 
GCS, or both, be equipped with a flight data recording system. This 
regulation works in tandem with the flight data requirements in Sec.  
108.725. This system must capture and record onboard system and data 
from initial powerup through shutdown. This proposed requirement would 
ensure that a system captures relevant data to recreate the flight and 
determine the root cause of incidents and accidents. In addition, Sec.  
108.900(b) requires the recorded data to be in a standardized format 
and readily accessible to FAA and NTSB, and readable without requiring 
proprietary software. This is to help ensure data integrity in the 
event of an investigation and to support regulatory analysis and 
oversight.
    The data must be readily accessible to FAA or NTSB to provide 
relevant information for engineers, technicians, maintenance crews, and 
operators to identify root causes and resolve safety of flight issues. 
By analyzing this data, the manufacturer, operator, and FAA can 
efficiently determine the root cause of

[[Page 38311]]

failures and monitor the UA's overall health. Furthermore, the 
retrievability and standardization of the data enables the NTSB to 
better analyze and investigate UA accidents. This comprehensive 
approach to data recording and accessibility ensures that relevant 
information, including system inputs, outputs, data bus logs, signal 
strength indicators, and sensor data, could be utilized in determining 
root cause.

V. Flight Data Analysis (Sec.  108.905)

    Section 108.905 proposes that a UAS would need to be designed to 
capture and record all flight data necessary for trend analysis, 
failure identification, and root cause analysis. Designing a UAS to 
capture and record flight data is important for ensuring safety and 
reliability. The manufacturer of the UAS that has received 
airworthiness acceptance is responsible for ensuring continuing 
operational safety of their UAS designs. Access to the flight data 
identified in this section enables the manufacturer to perform a 
detailed analysis of incidents, identifying trends and root causes of 
failures, which is essential for developing preventive measures and 
improving design. It supports ongoing regulatory compliance, 
facilitates acceptance processes, and enhances operational efficiency 
by enabling trend analysis and targeted maintenance strategies. 
Moreover, analyzing flight data can inform training programs. These 
training programs would serve to reduce operator errors and increase 
the overall safety of UAS operations.
    Such data collection and analysis not only improves safety and 
reliability but also builds stakeholder confidence by demonstrating a 
commitment to rigorous safety standards. As UAS operations become more 
integrated into the NAS, the ability to proactively manage and mitigate 
risks by leveraging comprehensive data analysis is indispensable. This 
approach would ensure that UAS technology evolves in a manner that 
prioritizes the safety of both the UAS and the NAS.

W. Noise (Sec.  108.910)

    This proposal would apply 14 CFR part 36 noise standards to part 
108 UA.\138\ Specifically, Sec.  108.910 would require UA seeking 
airworthiness acceptance under part 108 to demonstrate compliance with 
part 36. The changes to part 36 propose the methods of compliance that 
would be available to a UA that does not conform to a type certificate. 
A manufacturer could demonstrate compliance using an FAA-approved 
industry consensus standard or, where there are no noise consensus 
standards, using current part 36 procedures that are appropriate for 
the UA or a combination of requirements approved by FAA appropriate for 
the UA.
---------------------------------------------------------------------------

    \138\ For further discussion on proposed changes to FAA noise 
requirements and the applicability of 14 CFR part 36, see section 
XII.A of this preamble.
---------------------------------------------------------------------------

    This approach would provide flexibility in the methods of 
compliance for UA. It considers different procedures and pathways, in 
addition to the traditional noise certification process in part 36, 
that will provide for more streamlined compliance for UA requesting an 
airworthiness acceptance. The methods of compliance for the noise 
requirements are discussed in more detail in section XII.A, Updates to 
Noise Requirements.

X. Placards (Sec.  108.915)

    Section 108.915 proposes that the UAS would be required to display 
all placards necessary for safe handling and operation. Placards 
providing safety information related to hazmat marking, no-step, no 
hand hold, danger propeller, etc., relay vital information to operators 
and maintenance personnel. This requirement contributes to the safety 
of the personnel working with the UA, including first responders and 
third parties, while also helping to protect the aircraft from damage 
due to improper handling. The dimensions of the placard and its text 
would need to be adjusted based on the UA's size, ensuring legibility. 
FAA understands the broad range of size of aircraft that may be 
produced under this part and expects industry to develop standards to 
accommodate the different designs while ensuring this safety 
information is properly displayed.

Y. Identification and Marking (Sec.  108.920)

    Proposed Sec.  108.920 would require UA to comply with 14 CFR part 
45, which provides aircraft marking requirements. Part 45 marking 
requirements would not be required for the control station or any other 
associated element of the UAS. Section 45.11 of 14 CFR requires a 
fireproof data plate inside the aircraft to ensure that critical 
information about the aircraft's construction and operation is 
available in case of an emergency. The data plate contains information 
such as the aircraft's manufacturer, model number, and serial number. 
It may also include information about the aircraft's fuel capacity, 
electrical system, and other important details. In the event of an 
accident or emergency, first responders and investigators need accurate 
and reliable information about the aircraft's construction and 
operation to help determine the cause of the incident and to take 
appropriate actions to mitigate any hazards.
    As part 45 of title 14 CFR was implemented before regulation of 
part 108 UAS, several sections of that part need to be updated to 
accommodate part 108 UAS. FAA proposes to add Sec.  45.1(a)(4) to make 
part 45 apply to UA operated under part 108. In addition, FAA proposes 
modifying Sec.  45.10 by adding Sec.  45.10(a)(3) to allow for the 
marking of UA operated under part 108.
    Proposed Sec.  45.11 would add a new paragraph to require UA 
manufacturers under subparts G and H of part 108 to mark each aircraft 
with a fireproof identification plate. Proposed Sec.  45.11(i) would 
provide three requirements for the fireproof identification plate, 
which are all consistent with markings for other aircraft. First, the 
plate would need to include the information found in Sec.  45.13 using 
an approved method of fireproof marking. Second, the plate would need 
to be secured in a manner that it will not likely be defaced or removed 
during normal service or lost or destroyed by accident. Third, the data 
plate should be securely attached to the exterior of the UA fuselage, 
ensuring it remains legible and easily readable from the ground when 
the aircraft is not being operated. This placement facilitates 
straightforward identification and inspection by individuals on the 
ground, including first responders who can view the number without 
handling the aircraft.
    To facilitate compliance with regulations and ensure safe 
operation, proposed Sec.  45.13(a)(8) would require that the data plate 
clearly display the ``Part 108'' designation, if applicable, which 
would differentiate the aircraft from part 107 and part 91. This 
information will be valuable to both operators and regulators in 
determining where the aircraft is authorized to operate and provide 
consistency and uniformity in marking requirements across products in 
the NAS. FAA proposes to redesignate Sec.  45.13 (a)(8) to Sec.  45.13 
(a)(9).
    Part 45 also has specific requirements for the size of markings on 
different types of aircraft. The size of the markings depends on the 
type of aircraft, the purpose of the marking, and the location of the 
marking on the aircraft. For example, FAA requires that aircraft 
registration markings, including the unique N-number, be at least 12 
inches tall on large aircraft, such as commercial airliners. This is to 
ensure that the markings are easily visible and legible from a 
distance, and can be read

[[Page 38312]]

by air traffic controllers, pilots, and other aircraft personnel. On 
smaller aircraft, such as GA or private aircraft, FAA requires that the 
registration markings be at least three inches tall.
    As proposed in Sec.  45.29 (b)(4), the registration number of the 
UA would need to be displayed with 12-inch markings on the external 
surface if the surface is large enough for 12-inch markings. If the 
external surface is not large enough for 12-inch markings, then the 
manufacturer must use 3-inch markings. FAA recognizes that not all 
aircraft operating under part 108 can comply with these requirements 
due to size. Proposed Sec.  45.29 (i) states that, if the size of the 
aircraft does not allow for 3-inch markings, marks as large as 
practicable would need to be placed on the largest surface. The marks 
would need to be maintained in a condition that is legible, affixed to 
the UA in such a way that it will remain affixed for the duration of 
each operation, and displayed on an external surface of the UA.

Z. Additional Design and Performance Requirements for Operational 
Purposes (Sec.  108.925)

    In addition to the other design and performance requirements in 
Sec. Sec.  108.800 through 108.920, the UAS would need to be designed 
and constructed to conduct any manufacturer-designated operation as 
outlined in Sec.  108.400 and 108.500 safely. Whether the UA is being 
used for package delivery, agricultural dispensing, inspecting 
powerlines, or any other type of operation, there are specific hazards 
involved with specific operations that manufacturers are responsible 
for accounting for in their UAS designs. Proposed Sec.  108.925(a) 
would require that the UAS be designed to account for any operational 
and environmental conditions and hazards not addressed under Sec. Sec.  
108.800 through 108.920 for any manufacturer-designated permitted or 
certificated operations as defined in Sec. Sec.  108.400 and 108.500.
    The purpose of this requirement is to capture the unique additional 
design requirements associated with the specific manufacturer 
designated permitted or certificated operations. This proposed 
performance requirement is necessary to ensure that aircraft are 
designed and constructed to withstand foreseeable flight and ground 
loads associated with those manufacturer-designated operations. Failure 
to establish and validate adequate material strength and design 
properties to accommodate these permitted and certificated operations 
could cause structural failure resulting in loss of UA control or 
introduce hazards to persons on the ground due to the nature of the 
operations.
    Section 108.925(b) proposes that, for operations involving the 
carriage of hazardous materials, the UA or airborne transport container 
or tanks would be required to have sufficient structural integrity to 
contain the hazardous material without allowing leakage or release of 
the material in the event of a hard landing or crash. Containment of 
hazardous materials is especially important upon a hard landing or 
crash where the likelihood of leakage or release is greatest. Hazardous 
materials, if leaked or released, have the potential to cause immediate 
harm to health or property. Without proper containment, the public 
could be harmed, and first responders could be exposed to materials 
that could hinder their operations or require specialized equipment or 
procedures to mitigate.

AA. Testing

    FAA is proposing a structured test and evaluation process that 
manufacturers would be required to follow to validate their UAS designs 
and demonstrate reliable design for the operational purpose. Testing 
would include both the UA and any AE for each UAS make and model. The 
proposed structured testing process is expected to be accomplished in 
two phases. Phase one is developmental testing, as required by proposed 
Sec.  108.930, which is intended to validate a manufacturer's UAS 
design for compliance with the design and performance requirements of 
part 108, subpart H from initial ground testing, through first flight, 
and eventual compliance demonstration for each new make and model of 
UAS. Phase two would be function and reliability testing, required by 
proposed Sec.  108.935, which is intended to demonstrate the 
manufacturer's UAS design has the necessary reliability to operate 
BVLOS in the NAS for the designated purpose without creating a hazard 
to persons on the ground or other airspace users.
    FAA expects that voluntary consensus standards bodies would propose 
developmental and reliability testing standards. Once accepted by FAA, 
these testing standards would serve as a MOC with the testing 
requirements of this proposed rule and would address parameters to be 
evaluated prior to safe introduction of the UAS into the NAS. Testing 
standards would also address any test, analysis, and simulation 
necessary to validate alterations, repairs, or changes in design to a 
UAS with airworthiness acceptance. These testing standards should 
entail a comprehensive evaluation of the UA's performance across its 
flight envelope and throughout all intended operational parameters. The 
intent of this testing is to verify and validate the expected 
performance of the UAS and to ensure the design and materials used in 
the UAs construction offer the necessary strength and durability for 
all operations as designated by the manufacturer. For example, to 
ensure that aircraft electrical and electronic systems will continue to 
operate safely without interruption, failure, or malfunction, an 
aircraft to be used for powerline inspection would be tested in a 
representative High Intensity Radiated Field (HIRF) environment 
expected in service.
    Pursuant to proposed Sec. Sec.  108.105(b) and 108.470(a), before 
commencing any tests outlined in this section, the manufacturer would 
be required to possess a valid flight test permit.
1. Developmental Testing (Sec.  108.930)
    Developmental testing is the phase of design maturation when the 
manufacturer will validate their proposed UAS design complies with the 
requirements of subpart H. Proposed Sec.  108.930(a) would require a 
manufacturer to conduct flight testing of the UAS to achieve or 
validate compliance with design and performance requirements of subpart 
H in an operationally representative environment and throughout the 
flight envelope. Developmental testing is necessary to ensure a design 
has been adequately validated prior to locking the configuration of the 
UAS and conducting function and reliability testing. Configuration 
lockdown refers to the process of finalizing and securing the design, 
settings, and options of a system, software, or AE to prevent 
unauthorized changes. This ensures the system design remains consistent 
and operates as intended by preventing modifications to its 
configuration during testing.
    Flight testing is required to validate end-to-end functionality of 
the UAS in an operationally representative environment. This ensures 
that all components of the UAS work harmoniously under expected 
operational scenarios, including those that may only be theoretical or 
may not be fully replicable in simulated environments. Further flight 
testing should include testing of the aircraft at the margins of design 
and performance to validate the design and determine appropriate 
limitations.
    FAA recognizes manufacturers may use simulation, analysis, 
component tests, ground tests, flight tests, or a

[[Page 38313]]

combination thereof, to show compliance with this subpart. Therefore, 
Sec.  108.930(b) proposes analysis may be used in combination with 
flight testing to validate compliance with this subpart. For certain 
components or systems and some designated operations, methods other 
than flight testing may prove to be more accurate. FAA wants to allow 
for use of these other methods if appropriate.
    If simulation is used in an analysis to validate compliance during 
testing, FAA also proposes in Sec.  108.930(b) that the simulation must 
be validated using an FAA-accepted MOC. Validated simulations ensure 
accuracy and fidelity providing a reliable representation of real-world 
scenarios by showing that the simulation accurately predicts the 
outcome of physical testing. This reliability is essential for safety, 
as it ensures that any derived models or conclusions accurately mirror 
real-world conditions and responses, minimizing the risk of unforeseen 
issues or discrepancies when applied in actual operations. Once 
validated, the manufacturer can use simulations for derivative models 
that fit within the simulation's parameters. Recognizing the critical 
safety implications, FAA expects consensus standards bodies to develop 
acceptable standards that include provisions for developing and 
validating simulations. A manufacturer would rely on these standards as 
acceptable means of demonstrating compliance with the requirements of 
subpart H.
    Section 108.930(c) proposes that, before proceeding to function and 
reliability testing, the manufacture ensures the UAS configuration has 
no hazardous operating characteristics or design features and is safe 
for the intended operation. This step ensures that the aircraft is 
fully prepared for reliability assessments, and that no product is 
introduced into the NAS before all safety issues are thoroughly 
addressed. Such diligence ensures that the UAS meets the required 
safety standards, thereby preventing premature deployment of 
potentially unsafe systems.
    In addition, Sec.  108.930(d) proposes developmental testing would 
be required to validate that any probable failure of the UAS will not 
result in a loss of flight or loss of control of the UA. Probable 
failures, such as those related to propulsion systems, C2 link, GPS, 
flight control components with a single point of failure, the control 
station, and any AE identified by the manufacturer should be evaluated 
for compliance with this requirement. All components of the UAS used 
for testing should be operated in accordance with the UAS operating 
instructions and each test should occur at the critical phase and mode 
of flight, using the highest UA-to-flight coordinator ratio. UAS with 
fail-safe design features demonstrated through acceptable developmental 
testing standards reduce the likelihood of incidents and accidents by 
ensuring no probable failure of the UAS results in loss of flight or 
loss of control of the UA. This demonstrated functionality is necessary 
to show a UAS design has an acceptable level of safety to be operated 
for the manufacturer-designated purpose.
2. Function and Reliability Testing (Sec.  108.935)
    Proposed Sec.  108.935(a) would require each manufacturer to 
perform function and reliability testing for each UAS make, model, and 
configuration. This requirement is intended to demonstrate that the 
specific configuration of each make and model produced by a 
manufacturer has the necessary reliability to conduct operations in the 
NAS for the manufacturer-designated purpose. Each serial number or 
ranges of serial numbers of a particular make and model would not 
require reliability testing. Once a particular make, model, and 
configuration has demonstrated compliance with function and reliability 
testing requirements, compliance with Quality Assurance Sec.  108.730 
and Production Acceptance Sec.  108.735 requirements ensure each serial 
number of a particular make, model, and configuration produced by a 
manufacturer complies with the requirements of subpart H.
    Section 108.935(b) proposes each UAS make, model and configuration 
complete no less than 150 failure-free flight test hours. A failure-
free flight test is one where the UAS is operated and flown without 
experiencing any failures that could lead to a loss of flight, loss of 
control, non-conformance with UAS traffic management, loss of safe 
distance, or results in an unplanned landing. An unplanned landing is 
one that was previously unscheduled during the test or is necessitated 
due to failures that result in loss of function or redundancy for safe 
operation.
    The occurrence of any of these outcomes resulting from a probable 
UAS failure condition increase the likelihood of an incident or 
accident which could result in injury or property damage. The minimum 
of 150 flight hours is based 14 CFR 21.35(f)(2) requirements, which are 
the flight test requirements for part 21 certificated aircraft. By 
demonstrating a UAS design does not have any of these occurrences over 
a minimum of 150 flight hours, the manufacturer would show their UAS 
has the necessary reliability to be operated in the NAS, increasing the 
likelihood of a safe operation.
    Only UAS with acceptable reliability, demonstrated though 
acceptable means, would achieve airworthiness acceptance, which is 
necessary to operate in the NAS. FAA expects function and reliability 
testing to be conducted in accordance with consensus standards accepted 
by FAA.
    Section 108.935(c) proposes testing must be conducted in an 
operationally representative environment, as defined in Sec. Sec.  
108.400 and 108.500, and as designated by the manufacturer. Before 
entering the NAS, the UAS must establish a baseline for function and 
reliability in its operational environment. Function and reliability 
testing within the representative environment of the intended 
operations properly demonstrates that baseline before entering the NAS. 
This further ensures the manufacturer's designated UAS operational 
purpose may be conducted safely and reliably. FAA expects any voluntary 
consensus standards to encompass a specified minimum number of 
operational cycles for both UA and AE. The primary objective is to 
verify that the UAS reliability meets the expected minimum performance 
characteristics. Any supplementary design features needed for specific 
operations should be rigorously evaluated to confirm their reliability 
and suitability for the intended purposes. In addition, design features 
should demonstrate the appropriate reliability for the flight and 
ground loads expected in service. A UAS that is unable to withstand the 
ground loads expected in service, such as crew handling, loading, 
unloading, or servicing could fail due to unexpected fatigue and wear 
resulting in loss of flight or loss of control.
    To ensure UAS designs continue to have acceptable reliability 
following the completion of testing proposed in Sec.  108.935(b), Sec.  
108.750(b) proposes the manufacturer of the UAS that has received 
airworthiness acceptance must demonstrate compliance with the 
requirements of subparts G and H of this part for any design change to 
a UAS. Without this requirement, a design change such as replacing an 
existing servo actuator or speed controller with a new manufacturer's 
part number would likely have an effect on flight characteristics of 
the UA, thereby affecting its reliability. Only through thorough 
function and reliability flight testing of the new design can the

[[Page 38314]]

demonstrated reliability of the UAS be maintained. Industry is well-
suited to determine best practices for evaluating a design change that 
would have an effect on the demonstrated reliability of the UAS. 
Therefore, FAA expects industry to develop consensus standards to 
determine the appropriate number of function and reliability flight 
testing hours necessary to ensure any changes in design are thoroughly 
evaluated and the new UAS configuration continues to have no hazardous 
operating characteristics or design features; and is in a condition for 
safe operation.

XII. Corresponding Regulatory Updates

A. Updates to Noise Requirements

    In the MOSAIC NPRM, FAA proposed to amend the applicability of 14 
CFR part 36 to include noise requirements for aircraft that do not 
conform to a type certificate.\139\ Specifically, FAA proposed to add 
Sec.  36.0 to address such aircraft. This separation of Sec.  36.0 from 
the remainder of part 36 was intended to keep the requirements of 
aircraft requiring a type certificate clearly separated from those 
which do not.
---------------------------------------------------------------------------

    \139\ See 88 FR 47650.
---------------------------------------------------------------------------

    This proposal extends the MOSAIC NPRM's Sec.  36.0 approach to UAS 
as part of airworthiness acceptance under part 108. Similar to the 
proposal in MOSAIC, manufacturers would demonstrate compliance with 
part 36 noise requirements through either FAA-approved noise consensus 
standards or other methods provided for in Sec.  36.0. Under proposed 
part 108, manufacturers would attest to compliance with part 36 as 
proposed in subparts G and H of part 108.
1. Noise Certification Background
    Pursuant to its authorizing legislation in 49 U.S.C. 44715, FAA has 
the responsibility to ``protect the public health and welfare from 
aircraft noise.'' This responsibility came with broad authority to 
adopt regulations and noise standards to carry out this mandate. When 
promulgated in the 1970s, the statute mandated that noise regulations 
be created and required the application to aircraft seeking new type 
certificates. At that time, FAA applied the part 36 noise certification 
regulations when the agency issued type certificates. This represented 
the provision in 44715(a)(3) that acts as the ``floor'' for FAA's duty 
to exercise its authority. The agency's much broader authority over 
aircraft noise remains discretionary.
    The MOSAIC NPRM proposed an expansion of applicability of part 36 
to aircraft that had not received type certificates. FAA explained that 
it had initially determined that there was little value in assessing 
the noise from aircraft that did not receive type certificates as the 
aircraft were low in number and in many cases may have been a single 
aircraft of its kind. More recently, FAA found there were larger 
numbers of these aircraft operating that did not conform to a type 
certificate, overtaking those historical presumptions. As such, FAA 
indicated in MOSAIC that it could no longer justify the exclusion of 
these aircraft, including light sport aircraft in 14 CFR 21.190 and 
some experimental aircraft subcategories under 14 CFR 21.19, and their 
noise impact on communities under its statutory responsibility. The 
MOSAIC NPRM provided an opportunity to recognize and address the noise 
created by these aircraft. The NPRM explained that the proposed 
expansion of the applicability of part 36 to these aircraft 
acknowledges that noise certification was part of the overall 
certification scheme for aircraft and appropriate for modernization.
    FAA has the statutory obligation to regulate noise under 49 U.S.C. 
44715, and discretionary authority to apply noise standards for 
aircraft with or without type certificates. FAA is proposing to use a 
similar noise regulatory approach for UAS operating under part 108 as 
FAA proposed for MOSAIC aircraft. In both cases, these aircraft would 
not have type design certificates, but rather special airworthiness 
certificates (i.e., MOSAIC) or an airworthiness acceptance (as proposed 
in this rule).
    FAA proposes to approach regulating noise for part 108 aircraft in 
the same manner that FAA proposed regulating noise for light sport 
aircraft in the MOSAIC NPRM. Like the MOSAIC proposal for light sport 
aircraft, this proposed rule does not call for type certification of 
aircraft to be operated under part 108. The regulatory approach for 
noise that was proposed in the MOSAIC NPRM, described herein, is being 
considered for this rulemaking. As described in section III.A.6, FAA 
uses the safety continuum to determine the appropriate level of 
regulatory oversight over a variety of aircraft. Because FAA finds that 
proposed part 108 operations falls between part 107 operations and 
light sport aircraft operations on the safety continuum, and because 
these two classes of aircraft similarly would not have type 
certificates, FAA is proposing to extend the MOSAIC regulatory 
framework to part 108 operations as it applies to noise. FAA requests 
comments on its proposed use of the MOSAIC approach for regulating 
noise to UA operating under part 108. FAA also requests comments and 
feedback on other possible approaches that could be taken for FAA to 
use its discretionary authority to regulate, or not regulate, noise 
produced by UA operating under proposed part 108.
    In comparison to conventional aircraft operating from airports and 
in the NAS, UAS will frequently operate in closer proximity to noise 
sensitive areas. These UAS operations may occur with a higher tempo of 
operations and with noise signatures that tend to be time-varying and 
disruptive to persons on the ground. Operations using these UAS were 
not contemplated when FAA initially promulgated its noise regulations. 
Even though these aircraft would not go through a traditional type 
certification process, FAA acknowledges that these aircraft and their 
potential noise impact on communities are within its statutory 
responsibility.
    When FAA adopted part 107 in 2016, which allowed certain small UAS 
operations without requiring airworthiness certification or any 
exemption, waiver, or certificate of authorization, FAA chose not to 
apply the noise certification standards of part 36. This decision was 
based on the limited aircraft size and restricted operating environment 
prescribed in part 107.
    Since the promulgation of part 107, several UAS models have 
demonstrated compliance with part 36, with several more UAS models 
currently in the process. In addition, there has been a significant 
increase in the number of UAS and UAS operators and a rapid advancement 
of UAS technologies.
    Experience with UAS operations has revealed that these aircraft 
operations are significantly different from those of the conventional 
aircraft. These different operations include package delivery or 
infrastructure inspection. The UAS aircraft are expected to operate at 
lower altitudes and in much closer proximity to persons that are not 
participating in the flight but who are exposed to its effects. 
Further, these aircraft are of unconventional design and incorporate 
newer technologies, such as distributed propulsion, electric battery 
power, and unique VTOL capabilities. Researchers have not yet 
determined how these new features and unique noise characteristics 
affect people's responses to their noise. The current noise limits and 
test criteria in part 36 do not consider these characteristics or 
operating environments because the standards and regulations were 
written to address traditional manned aircraft designs. For these 
reasons and as UAS operations

[[Page 38315]]

expand significantly and as airworthiness standards are developed, such 
as those for vehicles operating under proposed part 108, FAA sees the 
need to propose noise regulations for these UA.
2. Noise Certification: Current Status
    The primary emphasis in noise certification is on controlling 
aircraft noise. That is done by assessing noise at its source, the 
aircraft itself, rather than its operations generally. For traditional 
aircraft, this assessment occurs when noise is measured at the time of 
type certification. Through the creation of noise limits for various 
aircraft types and the development of measurement procedures and 
methods that are relevant to day-to-day operation, FAA meets its 
primary statutory obligation to protect the public health and welfare 
by assessing the noise profiles of aircraft as they are developed and 
by setting a defined noise limit with which an aircraft must not exceed 
before it is given a type certificate and permitted to operate. The 
limits are set based on weight, design, and means of propulsion. There 
are a set of standards and limits for fixed wing small airplanes, one 
for jets, one for helicopters, and one for tiltrotors. As new aircraft 
designs are developed, FAA gathers the appropriate data to determine 
what is acceptable for noise production by the aircraft type to fulfill 
the agency's statutory responsibilities. These standards, limits, and 
their adoption into regulations are how FAA meets its obligation to 
protect public health and welfare from aircraft noise and how that 
obligation is appropriately and consistently administered.
    Traditionally, noise certification has been required only for 
aircraft that conform to a type certificate, though it is considered an 
airworthiness characteristic of an individual aircraft. As discussed 
earlier, the expansion of the domestic fleet to include routine 
operations of UAS that are not type certificated has caused FAA to 
consider its statutory responsibility regarding these aircraft and 
address noise from both type certificated and non-type certificated 
aircraft. As is required by FAA's statutory mandate, the existing 
limits and procedures for noise certification have been developed in a 
manner that considers the economic reasonableness, technological 
practicability, and appropriateness for the aircraft to which it would 
apply.\140\ These criteria also guided the expansion of the noise 
requirements proposed here.
---------------------------------------------------------------------------

    \140\ 49 U.S.C. 44715(b).
---------------------------------------------------------------------------

    Currently, noise certification is a performance-based two-step 
process used to test an individual aircraft (or model) using the 
procedures of part 36. The first step is to measure the noise levels 
created by an aircraft at different operating points. The second step 
is to determine whether the noise levels measured during testing are at 
or below the regulatory noise limit, demonstrating that the aircraft 
complies with part 36. Since it does not require any specific 
technology or equipment be installed on an aircraft, part 36 functions 
as a performance standard; the test shows that as configured, an 
aircraft is below or above the regulatory limit. Notably, the noise 
regulation process does not itself create operational restrictions.
    This overall proposed modernization of airworthiness qualifications 
and categories in part 21 and airworthiness acceptance in part 108 
present a unique opportunity for FAA to modernize its noise 
responsibilities within the framework of the various aircraft 
certification and airworthiness processes that allow operation with or 
without type certificates. FAA is aware that type certification has 
long been avoided in part to skirt the noise regulations.
    As noise requirements would expand to cover aircraft that do not 
have type certificates, FAA is open to consideration of different 
procedures and paths that will both meet its statutory obligations and 
allow for more streamlined compliance for those UAS receiving 
airworthiness acceptance. Those compliance mechanisms are proposed in 
Sec.  36.0. Nothing about these proposed regulations may be interpreted 
to alter the current noise certification limits or test requirements 
for type-certificated aircraft.
3. Applicability to Part 108
    Proposed Sec.  36.0 would apply to all aircraft for which an 
applicant seeks an airworthiness acceptance in accordance with part 
108. Proposed Sec.  36.0(a) lists the compliance requirements for 
aircraft that do not conform to a type certificate. Section 36.0(a)(1) 
contains the language that was proposed in the MOSAIC NPRM. This 
proposal would add Sec.  36.0(a)(2) and require that the noise 
regulations of part 36 apply at the time an applicant submits an 
application for airworthiness acceptance of an aircraft. Further, as 
described in section IX.G, Repairs and Alterations, if there would be 
any repairs or alterations to a UAS with airworthiness acceptance, the 
proposal would require that the UAS maintain compliance with the 
requirements of subparts G and H of part 108, including compliance with 
the part 36 requirements.
    This proposal would include all the requirements proposed in MOSAIC 
for this section in Sec.  36.0(b)(1). It would also identify the 
aircraft subject to these requirements. This proposal would add Sec.  
36.0(b)(2) and require that for UAS going through an airworthiness 
acceptance process under part 108, the applicant must be able to 
document their compliance with part 36 prior to submitting the DOC 
required in Sec.  108.715(b). First, an applicant would demonstrate the 
UAS, usually in its noisiest operating configuration, does not exceed 
the noise limit specified for an aircraft of its kind and weight, which 
is specified in part 36, the applicable consensus standard, or the 
requirements determined by FAA to be appropriate for the aircraft. The 
number that results from the test is called the aircraft's noise level 
and it must be no louder than the applicable noise limit required by 
part 36. The second part of demonstrating compliance concerns the test 
procedures and analyses that may be required (depending on the 
aircraft), and documenting that they conform to the requirements in 
part 36 for the aircraft. FAA anticipates that this provision would be 
applicable to certain UAS that may be similar to aircraft covered by an 
existing appendix in part 36. Those UAS may choose to comply with the 
applicable appendix.
    Proposed Sec. Sec.  36.0(c) and (d) would provide options to 
demonstrate compliance with part 36 requirements ranging from using 
part 36 appendices applicable for aircraft design when the design fits 
into existing categories, using FAA-approved noise consensus standards 
when they are available, or a combination of requirements as approved 
by FAA. FAA has previously acknowledged that existing part 36 standards 
and procedures may not be adequate to address noise certification of 
certain types of UA.\141\ When no appropriate noise standards exist in 
part 36 for an aircraft, FAA has developed limits and procedures that 
apply to an individual aircraft model, in the form of rules of 
particular applicability (RPA) as an interim approach to noise 
certificate aircraft before a generally applicable standard is 
developed. FAA has been gaining knowledge and experience on UAS noise 
through working with stakeholders, including industry, academia, and 
NASA. Further, FAA has

[[Page 38316]]

been actively engaged at ICAO and working with noise experts from other 
civil aviation authorities in developing a generally applicable, 
internationally harmonized noise standard for UAS designs. Once such 
standard is developed at ICAO into Annex 16, FAA expects to go through 
the regulatory process to incorporate that standard into part 36 if it 
is deemed appropriate. A general noise standard for UAS is unlikely to 
be available until after the publication of this proposal.
---------------------------------------------------------------------------

    \141\ Noise Certification Standards: Matternet Model M2 Aircraft 
final rule; rule of particular applicability, 87 FR 55878 (Sept. 12, 
2022).
---------------------------------------------------------------------------

    As proposed in the MOSAIC NPRM, Sec.  36.0(c) lists the first 
method of compliance that would be available to an aircraft that does 
not conform to a type certificate: the use of a noise consensus 
standard. FAA expects the industry to develop noise consensus standards 
for use by manufacturers of aircraft and by individuals. Before a 
consensus standard could be used to demonstrate compliance with part 36 
for an aircraft that does not conform to a type certificate, the 
standard would have to be approved by FAA and based on part 36 noise 
limits. FAA expects that any consensus standards would not be limited 
to physical measurements of noise taken during test flights. They might 
instead be based on empirical data or analytical modeling if the 
underlying noise prediction methods are found to be robust.
    In evaluating new noise consensus standards to be used to 
demonstrate compliance with Sec.  36.0 for part 108 UAS, FAA expects to 
consider the following factors, which are similar to the factors 
described in the MOSAIC NPRM:
    (1) The methods in the standard, whether based in physical noise 
testing or through validated and/or generally accepted noise prediction 
methods, are environmentally responsible, economically reasonable, 
technologically practicable, and appropriate for the aircraft to which 
it would apply (see 49 U.S.C. 44715(b)(4));
    (2) The standard must consider developments in other associated 
fields (such as research programs into quantification and control of 
aircraft noise) and participation by stakeholders;
    (3) The noise levels generated from using the prediction methods 
must be within 90 percent of confidence limits and must be within +/-3 
A-weighted decibels (dBA) when compared to results from using the full 
noise measurement procedures in the corresponding appendix of part 36 
or an FAA-published RPA for a UAS; and
    (4) The standard must clearly document all assumptions used in the 
development, validation, results, and limitations of the methods 
presented.
    FAA expects that these factors would be different in certain 
regards from what was described in the MOSAIC NPRM because these 
consensus standards would address a relatively new technology that is 
designed and operates differently than a traditional manned aircraft. 
In particular, the third factor uses a +/-3 dBA difference in the 
confidence limit instead of the +/-2 dBA proposed in MOSAIC. This 
difference accounts for the evolving prediction methods for UAS. 
Further, under this third factor, the consensus standard would be 
compared to the prediction methods either in part 36 or in an FAA-
adopted RPA for UA, whereas under MOSAIC, the consensus standard would 
only be compared to the procedures in the applicable appendix in part 
36.
    A modeling-based consensus standard would be expected to reduce the 
cost of noise compliance. Not only would there not be a need to 
physically test every model (or aircraft), but consensus standards 
would also allow manufacturers to use the predictive capabilities of 
those standards to guide and support aircraft design decisions in 
earlier phases, avoiding costly redesign or modifications.
    Accordingly, proposed Sec.  36.0(c) would allow the use of a 
consensus standard for an aircraft that does not conform to a type 
certificate when the standard has been approved by FAA, and FAA finds 
that the standard is appropriate for the aircraft and applies to the 
specific design. FAA anticipates that manufacturers of aircraft will 
work to develop such noise consensus standards as an added value for 
their products, and to facilitate compliance with noise requirements at 
an early stage.
    If there is no approved noise consensus standard available and 
appropriate to the UA, another means of demonstrating compliance with 
part 36 would be required. As proposed in MOSAIC, Sec.  36.0(d) lists 
the methods of compliance with part 36 available for an aircraft that 
does not have an applicable noise consensus standard. The first 
determination is whether the aircraft is found by FAA for noise 
purposes to be the same as or sufficiently similar to a type-
certificated aircraft covered by Sec.  36.1. If it is the same or 
similar, FAA expects to document this determination as part of its 
existing noise certification process. As with MOSAIC, in proposed Sec.  
36.0(d)(1)(i) for part 108 UA, if FAA finds there is such a type-
certificated aircraft, then the applicant for airworthiness acceptance 
may choose to retest its aircraft using the same part 36 standards that 
apply to the type-certificated aircraft, or adopting the noise levels 
for the type-certificated aircraft that are the same or sufficiently 
similar in design to the aircraft when the aircraft has not been 
altered to result in an acoustical change. FAA expects that Sec.  
36.0(d)(1)(ii) only would apply where the UA would be the same or 
sufficiently similar in design to a type certificated aircraft such 
that the noise levels are the same. The part 108 aircraft would need to 
be able to demonstrate the same noise levels as the type-certificated 
aircraft.
    Alternatively, if FAA finds that the applicant's aircraft is not 
the same or similar to an aircraft noise certificated under Sec.  36.1, 
the applicant would be able to demonstrate noise compliance using the 
noise requirements determined by FAA to be appropriate for the 
aircraft. This provision, proposed Sec.  36.0(d)(2), is intended to 
allow the agency the maximum flexibility in finding an acceptable 
combination of requirements that are appropriate for the aircraft 
presented. FAA would be able to build a noise compliance basis for an 
aircraft using parts of current regulations in part 36, regulations in 
part 36 that are no longer used for new certifications, accepted noise 
compliance standards that are not published in part 36 (such as those 
applicable to single aircraft model), and portions of accepted noise 
consensus standards. The noise limits established in part 36 would 
still apply, but the method of compliance would consist of tests or 
analyses that work for a particular aircraft, while allowing for the 
whole of the noise compliance basis to be assessed according to the 
statutory mandate for economic reasonableness and technological 
practicability. This kind of flexibility is not available under Sec.  
36.1 for type-certificated aircraft. It is designed to assist 
applicants for airworthiness acceptance, especially for new aircraft 
designs that do not fit neatly into historical categories.
    As an example, FAA has adopted RPA to provide requirements for 
specific aircraft.\142\ Those noise requirements have included 
modifications to the part 36 test procedures, reference conditions, and 
noise limits for the specific aircraft. FAA may provide similar noise 
requirements for aircraft under part 108.
---------------------------------------------------------------------------

    \142\ FAA has published several in the Federal Register. The 
first: Noise Certification Standards: Matternet Model M2 Aircraft, 
87 FR 55878 (Sept. 12, 2022). Several have followed, as listed here: 
www.faa.gov/about/office_org/headquarters_offices/apl/aee/noise/uas_noise_certification.

---------------------------------------------------------------------------

[[Page 38317]]

4. Exceptions to Noise Applicability
    Section 36.0(e) provides exceptions from demonstrating compliance 
with the requirements of part 36 for certain aircraft. Paragraphs 
(e)(1)-(3) were proposed as part of the MOSAIC NPRM. FAA does not 
anticipate that these paragraphs would apply to part 108 UAS because 
these exceptions are specific to aircraft with certificates under part 
21.
    For purposes of part 108, FAA proposes in Sec.  36.0(e)(4) that UAS 
designed and used exclusively for agricultural UA operations under part 
108 would be excepted from meeting the noise requirements of part 36. 
Certain aircraft that historically have been designated exclusively for 
agricultural aircraft operations (as defined in 14 CFR 137.3), have 
been excepted from the requirements of part 36 (see Sec.  36.1(a)), 
subject to some conditions. FAA is proposing to extend this exception 
in part 36 for agricultural operations for part 108 UA that are 
specifically designed for these operations and have an airworthiness 
acceptance that limits the purpose and use of these aircraft to 
agricultural operations. As agricultural operations occur largely over 
non-populated or rural areas, the imposition of noise standards would 
not result in enough public benefit to justify imposing the costs of 
compliance.
    FAA requests comment on whether any other categories of aircraft 
should or should not be subject to part 36 noise requirements, 
including any technical or economic data that support the comment.
    The process of noise certification for an aircraft that does not 
conform to a type certificate is intended to be simpler, with lower 
costs for manufacturers and owners that introduce significant 
alterations to their aircraft. The traditional processes of 
demonstrating compliance to noise requirements can be complex, 
requiring technical skills and experience with acoustic measurement 
that most aircraft owners do not have. Conducting such testing using 
accredited professional services can also be expensive. Moreover, the 
best noise performance is often achieved by informed decisions early in 
the design process rather than by later design additions or 
modifications. Like the noise certification basis for type-certificated 
aircraft, FAA must approve the applicable noise compliance standards 
for an aircraft before it is tested, or the applicant risks the tests 
and data being deemed unusable for demonstrating compliance with part 
36. But the addition of consensus standards and the application of 
other methods of demonstrating compliance proposed here are all 
intended to create a simpler, less restrictive process while 
maintaining FAA's mandate to protect the public health and welfare.
5. Other Changes to Noise Certification
    As in the MOSAIC NPRM, FAA proposes to amend other sections of part 
36 (i.e., Sec.  36.1) to include references to aircraft that do not 
conform to a type certificate where the requirements would apply.
    The MOSAIC NPRM proposed to amend Sec.  36.3, Compatibility with 
airworthiness requirements, by breaking the applicability into two 
paragraphs for type-certificated aircraft and aircraft that do not 
conform to a type certificate. This proposal would add a new paragraph 
(c) to specifically address part 108 UAS. This new paragraph would 
maintain the requirements currently in Sec.  36.3, but tailor the 
requirements to the airworthiness acceptance process that is described 
in subparts G and H of part 108. No changes to the existing 
requirements of the section are proposed.
    Building on the MOSAIC proposal, Sec.  36.1501, Procedures, noise 
levels, and other information, would be amended by adding a sentence 
indicating that the operating instructions for aircraft under part 108 
would have to include the noise levels achieved during airworthiness 
acceptance. This proposal would be consistent with the requirements for 
other aircraft subject to part 36. No changes to the existing 
requirements of the section are proposed.
    This proposal also builds on the MOSAIC NPRM proposal to amend 
Sec.  36.1581, Manuals, markings, and placards, by adding a new 
paragraph (h) to describe the requirements for an aircraft that does 
not conform to a type certificate. This proposal would add text to the 
introductory language in paragraph (h) indicating that for aircraft 
subject to part 108, compliance with part 36 must be documented as 
described in Sec.  108.720. A parallel requirement is in proposed Sec.  
108.720(a)(1), which would require that the operating instructions 
include the statements of compliance required under Sec.  36.1581(h). 
As proposed, the operating instructions would include a statement that 
the aircraft has demonstrated compliance with part 36 and the 
demonstrated noise levels of the aircraft. In addition, paragraph (h) 
also would state that no operating limitations are prescribed as part 
of part 36 certification, and that part 36 does not affect any 
operating limitations designated for an aircraft by other regulations. 
The actual operating limitations statement is included in the new 
paragraph (h) because the current paragraph of Sec.  36.1581 where it 
appears applies only to type-certificated aircraft.

B. Updates to Other Operating Rules

1. Part 43--Maintenance, Preventive Maintenance, Rebuilding, and 
Alteration
    FAA proposes to amend the applicability in Sec.  43.1 to provide 
that part 43 does not apply to aircraft being operated under part 108. 
As with part 107, the regulations proposed in part 108 would govern 
maintenance and alterations of UAS receiving airworthiness acceptance 
and conducting operations within the United States under part 108. As 
such, the maintenance and alteration requirements in part 43 would not 
apply to these UAS. However, the maintenance and alterations for UAS 
that are operated under part 91 are maintained in accordance with part 
43 of this chapter as applicable, and the requirements of part 108 
likewise would not apply.
2. Part 45--Identification and Registration Marking
    FAA is proposing changes to the applicability of part 45 as well as 
conforming amendments to Sec. Sec.  45.10, 45.11, 45.13, and 45.29. 
These additions are fully discussed in section X.Y of this preamble.
3. Part 48--Registration and Marking Requirements for Small Unmanned 
Aircraft
    FAA proposes to amend the applicability of part 48 in Sec.  48.1 to 
provide that part 48 does not apply to aircraft being operated under 
part 108. This change is fully discussed in section VI.A.2 of this 
preamble.
    FAA is also proposing to change the requirement in 14 CFR 
48.110(a)(7) to allow the serial number of a remote identification 
broadcast module to be listed on more than one Certificate of Aircraft 
registration only when the applicant information required in Sec. Sec.  
48.110 (a)(1)-(a)(4), is the same on all Certificates of Aircraft 
Registration. This change will allow remote identification broadcast 
modules to be more easily shared between small unmanned aircraft owned 
by the same person or entity. This change primarily affects owners of 
unmanned aircraft that are issued a certificate of aircraft 
registration pursuant to Sec.  48.100 for small unmanned aircraft 
operated for

[[Page 38318]]

any purpose other than exclusively limited recreational operations. 
Currently, owners of small unmanned aircraft operated for any purpose 
other than exclusively limited recreational operations must delete and 
then re-enter the remote identification serial number information on a 
Certificate of Aircraft Registration when a remote identification 
broadcast module is moved from one small unmanned aircraft to another 
owned by the same person or entity. This change will eliminate this 
burden, while still ensuring that the remote identification broadcast 
information can be associated with the registered owner or entity.
4. Part 89--Remote Identification
    FAA is proposing the addition of Sec.  89.511 as well as conforming 
amendments to Sec.  89.505 and Sec.  89.515. These additions are fully 
discussed in section VI.K of this preamble.
5. Part 91--General Operating and Flight Rules
i. Applicability
    FAA proposes to amend the applicability of Sec.  91.1 to describe 
that, except as provided in Sec.  108.180, part 91 does not apply to 
aircraft being operated under part 108. As with part 107, the 
regulations proposed in part 108 would govern operations of UAS 
conducted BVLOS within the United States. As such, the requirements in 
part 91 would not apply to those operations. However, corresponding 
changes to Sec. Sec.  91.113 and 91.225 are needed, as discussed below, 
to accommodate the proposed updates to right of way requirements for 
aircraft operations under part 91.
ii. Right-of-Way Rules: Except Water Operations
    FAA proposes to amend Sec.  91.113 to inform operators operating 
under part 91 of the new right-of-way construct proposed with the 
issuance of part 108. Specifically, that a UA conducting operations 
under part 108 of this chapter would have the right-of-way over other 
aircraft in flight unless the other aircraft is operating in a Category 
5 population density area as described in Sec.  108.185, operating in 
Class B or C airspace as described in Sec.  108.180(b), or departing 
from or arriving at an airport or heliport. Manned aircraft also have 
right-of-way if they are equipped and broadcasting their aircraft's 
location using ADS-B Out equipment that meets the requirements of Sec.  
91.227, or electronic conspicuity equipment that meets the performance 
requirements of Sec.  108.195(a)(2)(ii). FAA proposes to make these 
conforming updates in part 91 to establish that the change to the 
right-of-way rules is generally applicable. For further discussion on 
the proposed changes to right-of-way requirements, see section VI.J.
iii. Automatic Dependent Surveillance-Broadcast (ADS-B) Out Equipment 
and Use
    FAA further proposes to amend Sec.  91.225 to except ADS-B Out 
equipment from operating in the transmit mode when operated solely to 
meet the conspicuity requirements as proposed in the revised Sec.  
91.113 and proposed Sec.  108.195. As discussed in section VI, 
equipment operated per proposed Sec.  91.225(f)(3) will not meet the 
requirements of ADS-B Out equipment operated to comply with either 
Sec.  91.225 or Sec.  91.227, nor is it intended to be used for air 
traffic. The equipment operated to meet conspicuity requirements would 
only be used to make a UA aware of the presence of a manned aircraft 
that the UA must yield to. Therefore, FAA is proposing that the use of 
this equipment would be at the discretion of the individual operator.
6. Part 107--Small Unmanned Aircraft Systems
i. Applicability
    FAA proposes amending Sec.  107.1(b)(3) by removing the reference 
to section 333 of Public Law 112-95. Section 333 was replaced by 49 
U.S.C. 44807 in the 2018 FAA Reauthorization Act. The last exemptions 
issued under section 333 were issued in 2018 and had 2-year durations, 
therefore expiring in 2020. As there are no longer any section 333 
exemptions, it is unnecessary to include the reference in the 
regulation any longer.
    FAA proposes amending Sec.  107.1(b)(4) by striking the words 
``that has been issued an airworthiness certificate.'' This simplifies 
the applicability of part 107 by simply referencing aircraft that are 
operating under part 91, whether or not they have an airworthiness 
certificate. This amendment accounts for any aircraft that are 
operating under part 91 with a determination made under 49 U.S.C. 44807 
that an airworthiness certificate is not needed for the operation.
    FAA proposes adding Sec.  107.1(b)(5) to state that part 107 does 
not apply to the operation of UAS BVLOS operations. As proposed part 
108 is specifically intended to cover all BVLOS operations, it is 
logical to explicitly state that BVLOS operations would not be covered 
by part 107, in order to avoid any confusion.
    FAA proposes adding Sec.  107.1(b)(6) to state that part 107 does 
not apply to the carriage of property or packages by aircraft for 
compensation or hire. This amendment to Sec.  107.1 would reflect the 
proposed amendments to part 107 rules relating to air carriers. For 
more information, refer to section XII.B of this preamble.
ii. Aviation Safety Reporting Program
    FAA proposes to add Sec.  107.8, which would prohibit FAA 
Administrator from using reports submitted to NASA under the Aviation 
Safety Reporting Program (or information derived therefrom) in any 
enforcement action except information concerning accidents or criminal 
offenses, which are wholly excluded from the Aviation Safety Reporting 
Program. As discussed in section V.B.4, adding this prohibition to part 
107 would be consistent with how such reports are protected and used 
for part 91 pilots and other airspace users who are subject to FAA 
regulations. FAA and NASA have recognized the benefit of having 
accurate, candid, and timely reports of unsafe (or potentially unsafe) 
conditions in the NAS, and this would create that same consistency 
within part 107.
iii. Prohibition on Interference With a Remote Pilot in Command
    FAA proposes to add Sec.  107.10, which would codify that no person 
may assault, threaten, intimidate, or interfere with a remote pilot in 
command or visual observer in the performance of their duties regarding 
the operation of a UA. As discussed in section V.B.2, this requirement 
is necessary to protect the safety or efficiency of the NAS. Bad actors 
who interfere with UAS operations may endanger public safety and 
persons or property--both in the air or the ground--which is anathema 
to FAA's obligation to ensure the safe and efficient use of the NAS.
iv. Updates to Certain Areas Within Controlled Airspace at or Below 400 
Feet AGL
    FAA proposes to amend Sec.  107.41 to enable the same access to 
certain areas within controlled airspace at or below 400 feet AGL as 
part 108 operators. Under this amendment, airspace authorization would 
only be required in those portions of Class B, Class C, or Class D 
airspace or within the lateral boundaries of the surface area of Class 
E airspace designated for an airport that FAA specifically designates 
as requiring authorization.
    Currently, operators under part 107 must obtain an authorization 
from FAA to access any area within controlled airspace on a case-by-
case basis. This is accomplished by using either

[[Page 38319]]

FAADroneZone or a LAANC service provider.
    LAANC and FAADroneZone collect data about the operator, including 
contact information, location and altitude of operation, date of 
operation, and time of operation. Once the operator has authorization 
through LAANC or FAADroneZone, they usually do not have any other 
interaction with FAA prior to accessing the airspace. FAA is currently 
reviewing the requirement to collect this data considering no air 
traffic services are being given to UAS operating 400' AGL and below.
    Designated airspace requiring prior authorization would be compiled 
annually in FAA Order JO 7400.[XX], which FAA would incorporate by 
reference into Sec.  107.41. FAA would then publish periodic 
designation updates for airspace requiring prior authorization in the 
Federal Register and seek public comment through an NPRM. After 
considering comments and making any appropriate adjustments, FAA would 
publish the adopted designation updates in a final rule. At the end of 
the year, FAA would apply the updates to FAA Order JO 7400.[XX+1] and 
then incorporate the new version of the Order by reference. The 
currently incorporated version of FAA Order JO 7400.[XX] would be 
available on FAA's website, along with any periodic updates. In 
addition to making these designations available on its website, the 
agency anticipates making electronic information available for service 
providers to incorporate into their UAS information service offerings. 
Finally, FAA recognizes that, under certain circumstances, it could 
need to designate additional controlled airspace as requiring 
authorization, on an immediate or temporary basis. Accordingly, FAA 
proposes that, to maintain safety or security of aircraft operations, 
the Administrator may designate additional controlled airspace as 
requiring authorization under this section.
v. Technical Amendment To Remove Airspace Waiver
    FAA is also proposing a technical amendment to Sec.  107.205 that 
would eliminate paragraph (h) of that section and no longer allow the 
waiver of Sec.  107.41 (Operation in certain airspace). Section 107.41 
generally prohibited small UAS from operating in controlled airspace 
unless authorized by ATC. FAA made that provision waivable because it 
anticipated that among the many requests to operate in controlled 
airspace, there would be some premised on the technical capabilities of 
the small UAS operation and that the safety analysis would prove 
burdensome to ATC. However, since the rule, FAA made it possible for 
small UAS operators to easily and efficiently request for authorization 
to operate in controlled airspace online (e.g., LAANC or FAADroneZone) 
and for FAA to grant or deny the authorizations without overly taxing 
ATC. As a result, FAA has the ability to process all small UAS airspace 
authorization requests through these online tools without having to use 
the waiver process. Indeed, FAA no longer uses the waiver process for 
this purpose. For that reason, FAA is proposing to make this technical 
amendment to eliminate a provision that is no longer used that may 
cause confusion for small UAS operators.
vi. Updates to Rules Governing BVLOS and Operations for Compensation or 
Hire
    FAA proposes to amend Sec.  107.1 to remove the applicability of 
part 107 to the operation of UAS beyond the VLOS of the operator. Since 
part 108 will be the rule set that governs the operation of UA BVLOS of 
the operator, it no longer makes sense to provide waivers to the part 
107 rules for this type of activity. Any relief sought should be done 
under the auspices of part 108.
    FAA proposes to further amend Sec.  107.1 and Sec.  107.205 to 
restrict the carriage of any property or packages by aircraft for 
compensation or hire. This had previously been allowed under part 107 
in limited circumstances, primarily as long as the delivery was within 
line of sight of the remote pilot in command. Coupled with other 
restrictions in part 107, such as the prohibitions from operating over 
people and the restrictions on the carriage of hazmat, this was not 
intended to be a widespread activity and was not intended for large 
commercial ventures. The risk structure of part 107, which does not 
require any type of UAS design assurance, nor any form of operator 
qualifications, does not align with the risks posed with large 
commercial ventures. Therefore, FAA intends to remove the applicability 
for the carriage of property or packages by aircraft for compensation 
or hire from part 107 and restrict that activity to part 108, which is 
more risk appropriate. Part 108 will require all UA to have design 
assurance and an airworthiness acceptance issued by the manufacturer of 
the aircraft. Furthermore, the operator will have to attest to their 
capability to conduct safe operations and receive either an operating 
permit or operating certificate to conduct operations. Operators will 
also have to receive approvals for each area they intend to operate in, 
which will give FAA more visibility of where operations are occurring 
and provide for better ability to oversee these types of activities.
7. Part 119--Certification: Air Carriers and Commercial Operators
    FAA proposes to amend the applicability of Sec.  119.1 to describe 
that part 119 does not apply to aircraft operated under part 108. When 
promulgating part 107, FAA noted that the time was not then appropriate 
for creating a process for air carriers for UAS operations.\143\As 
discussed in the 2016 Final Rule, the Department has continued to 
assess if the requirements for air carriers are appropriate for UAS 
operations, including the need for air carrier certificates issued 
under part 119 and the operating regulations of part 135 or part 121.
---------------------------------------------------------------------------

    \143\ 81 FR 42036, 42076 (June 28, 2016).
---------------------------------------------------------------------------

    In developing the proposed regulations for part 108, FAA concluded 
that it is not necessary to include part 108 operations within part 
119, as proposed part 108 incorporates the relevant aspects of part 119 
in a manner that is appropriate for UAS that can be operated under this 
part. For more details, please refer to section IX.B.1.
8. Part 133--Rotorcraft External-Load Operations
    FAA proposes to amend the applicability of Sec.  133.1 to state 
that part 133 does not apply to aircraft operated under part 108. Part 
133 prescribes the requirements for external load rotorcraft 
operations. As with part 107 operations, FAA has determined that the 
requirements for external load operations are not analogous to part 108 
operations. The proposed design requirements of part 108, combined with 
the operational limitations proposed in part 108 obviate the associated 
risk of external load operations.
9. Part 135--Operating Requirements: Commuter and on Demand Operations 
and Rules Governing Persons on Board Such Aircraft
    FAA proposes to amend the applicability of Sec.  135.1 to state 
that part 135 does not apply to aircraft operated under part 108. Part 
108 is a fully contained set of operating requirements necessary for 
the safe conduct of BVLOS operations in the United States. Therefore, 
the operating requirements in part 135 would not be applicable to these 
operations and would only result in confusion if applied to part 108 
BVLOS operations. In addition, BVLOS UA operations currently being

[[Page 38320]]

conducted under part 135 are expected to transition to part 108 within 
a reasonable timeframe after the rule becomes effective. FAA 
understands that, to make that transition, existing operators will need 
time to update their fleets with UA that conform to the airworthiness 
requirements of the rule and meet other regulatory obligations. 
However, FAA does not intend for these operations to continue under 
part 135 for an indefinite amount of time.
10. Part 137--Agricultural Aircraft Operations
    FAA proposes to amend the applicability of Sec.  137.1 to state 
that part 137 does not apply to aircraft operated under part 108. As 
further discussed in sections VIII.B and VIII.C, this rule proposes 
requirements for agricultural operations conducted with UAS. These 
proposed requirements are specific to the operating profile of UAS, 
unlike the regulations in part 137, which were developed and 
implemented for traditional manned aviation. In the course of issuing 
exemptions from various part 137 regulations for UAS, FAA has 
determined what the appropriate requirements are for UAS agricultural 
operations, as captured in this proposed part 108, and thus it is not 
necessary to apply the requirements of part 137 to these types of 
operations. In addition, BVLOS UA operations currently being conducted 
under part 137 are expected to transition to part 108 within a 
reasonable timeframe after the rule becomes effective. FAA understands 
that, to make that transition, existing operators will need time to 
update their fleets with UA that conform to the airworthiness 
requirements of the rule and meet other regulatory obligations. 
However, FAA does not intend for these operations to continue under 
part 137 for an indefinite amount of time.

XIII. Part 146: Automated Data Service Providers

A. Introduction

    FAA recognizes the pressing need to enable UTM services, which help 
manage risks for BVLOS UAS operations.\144\ Facilitating the use of 
automated data services is an important step in realizing UTM services 
that could optimize NAS safety, security, and efficiency. Through this 
rulemaking, FAA proposes to create a regulatory framework that would 
enable the development, growth, and continued innovation of automated 
data services, beginning with those in support of the UTM ecosystem.
---------------------------------------------------------------------------

    \144\ The term ``UTM'' refers to a set of automated data 
services provided by a federated, distributed network of providers 
and an all-encompassing framework for managing multiple UAS 
operations. UTM system relies on NAS users and service providers to 
provide the services that collectively form the UTM ecosystem. The 
ecosystem will eventually include services for flight planning, 
communications, collision avoidance, and weather, among other 
capabilities.
---------------------------------------------------------------------------

    Data automation is a method of data management that relies on 
technology to collect, process, analyze, and transform raw data into 
usable information. Typically, automated data service providers use a 
distributed computational system--essentially a network--to gather raw 
data, process it, and then provide it in a usable format to the data 
recipient or user. FAA proposes a new part 146 to regulate those 
providers who use data automation systems to support certain UTM 
services necessary for BVLOS operations. The automated data service 
providers subject to regulation under proposed part 146 may, or may 
not, be directly involved in the aircraft operation. Nonetheless, they 
would provide flight services to help operators conduct their 
operations safely and efficiently. As such, FAA anticipates that most 
BVLOS operations would rely on automated data services to meet 
operational requirements proposed in part 108. Other operators may also 
rely on automated data service to fulfill their operational 
requirements, which are further discussed later in this proposed 
rule.\145\
---------------------------------------------------------------------------

    \145\ See section XIII.F.3 for a further discussion on the 
breakdown of operations that may be supported via automated data 
services provided through part 146.
---------------------------------------------------------------------------

    Automated data services may fulfill a variety of purposes depending 
on their exact functionality. Nonetheless, as discussed later in this 
preamble, FAA is only interested in automated data services that 
support operators in fulfilling their operational obligation without 
compromising the safety or efficiency of the NAS. In other words, only 
automated data services that are used by operators to mitigate 
additional risk that may be introduced in the NAS as a result of their 
aircraft operation would be subject to this rulemaking, i.e., part 146 
requirements.
    FAA anticipates many benefits from enabling the provision of 
automated data services. For example, automated data services that 
provide strategic deconfliction of UAS operations would reduce the risk 
of midair collision between UA, thereby reducing the risk of harm to 
people and property on the ground. Other kinds of automated data 
services may support operators' DAA responsibilities, which would 
include providing surveillance information or avoidance maneuvering 
instructions. Automated data services may also help operators avoid 
flight into terrain or dangerous weather, or loss of flight control, by 
providing operators with specialized data before and during flight 
operations to manage a variety of risk factors. These data service 
providers will play an important role in addressing safety concerns and 
in mitigating risk inherent in BVLOS operations. Because of this key 
role, these data service providers warrant FAA oversight to help ensure 
the continued safety and efficiency of the airspace.
    Some stakeholders may be more familiar with the concept of 
automated data service provider under other names. For example, 
``third-party service provider'', ``UAS service supplier (USS)'', or 
``Supplemental Data Service Provider (SDSP)'' are concepts familiar to 
many stakeholders active in the UA industry. This is because operators 
often outsource complex data functions that support unmanned flight 
operations to these third parties with the appropriate technological 
expertise, equipment, and scaled networks. Under proposed part 146, all 
these services and providers of those services that would fall within 
the umbrella term automated data service provider.
    Whether the automated data services are self-provided or outsourced 
to a third-party, any entity that provides an automated data service 
which FAA requires to be certified under part 146 would be subject to 
proposed part 146 regulations.\146\ As stated earlier, not every 
automated data service provider would necessarily fall within the scope 
of proposed 146. Only those that provide the automated data services to 
support an aircraft operators' ability to comply with an FAA regulation 
would be subject to part 146. Put simply, if an operator is using the 
automated data service provider to do something for which FAA requires 
a certified service provider, then the provider, as well as the 
automated data service that the operator uses, will be subject to part 
146 requirements. For example, an entity providing strategic 
deconfliction services for BVLOS operations in

[[Page 38321]]

controlled airspace under part 108 would be subject to proposed part 
146. This is because certificated strategic deconfliction is a 
requirement for those operations. Conversely, an entity providing 
automated data services to monitor the temperature of perishable cargo 
such as food deliveries or blood samples would not be subject to part 
146 requirements. This is because though important to the operator, 
monitoring this is not an aviation safety or efficiency concern 
regulated by this chapter. And as proposed in this rule, FAA would 
require automated data services to be services that promote NAS safety 
and efficiency, as well as support an operator's ability to comply with 
an FAA requirement, to fall within the scope of part 146. Services that 
meet these requirements would be eligible, but not required, to obtain 
a 146 certificate, if the service they offer is not required to be 
provided by a 146 certified provider.
---------------------------------------------------------------------------

    \146\ By mentioning self-provisioned automated data services, 
FAA means automated data provided in-house by the operator to 
support their own aircraft operations. In this scenario, the 
operator would still be subject to undergoing the part 146 
certification and service authorization process to provide their own 
automated data service. FAA is taking this approach to ensure that 
any automated data service introduced into the NAS, regardless of 
the service being provided by a third-party vendor or self-
provisioned by the operator, that FAA must first vet the service.
---------------------------------------------------------------------------

    The emergence of automated data service providers presents FAA with 
an opportunity to consider FAA's oversight role in a way that is 
responsive to the pace of technological advances and the safety and 
efficiency of the airspace. Recent and ongoing innovations in the 
aviation market are expected to bring various benefits, but also 
present corresponding risks. To keep pace with these technological 
advances, while maintaining the safety and efficiency of the NAS, FAA 
is taking an incremental approach toward regulating automated data 
services. This proposed rule would focus on services that enable 
operations under proposed part 108; however, it could be scaled to 
support more complex unmanned and manned aircraft data services 
including through future rulemaking(s) that enable services to support 
operations by aircraft with a pilot on board. Automated data service 
providers may eventually provide services that would support larger and 
more complex aircraft operations, such as those that would support the 
advanced air mobility (AAM) market.\147\ While FAA has considered how 
automated data services can support operations under the 
particularities of a part 108 operational paradigm developed for 
unmanned aircraft operating in limited airspace areas and below 400 
feet, it has not considered under what conditions these services could 
be applied in established operational constructs for traditional manned 
or AAM aircraft. Importantly, the services themselves are in a nascent 
stage and will evolve quickly as part 108 operations increase. As the 
automated data service industry matures, FAA will undoubtedly consider 
ways to leverage the services to benefit other aviation sectors.\148\
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    \147\ FAA Reauthorization Act of 2024 (Pub. L. 118-63, section 
951) defines AAM as a transportation system that uses manned or 
unmanned aircraft that is comprised of urban air mobility (the 
movement of passengers or property by air between two points in 
different cities or two points within the same city using an 
airworthy aircraft that has advanced technologies, such as 
distributed propulsion, vertical takeoff and landing, powered lift, 
nontraditional power systems, or autonomous technologies; and has a 
maximum takeoff weight of greater than 1,320 pounds), and regional 
air mobility (the movement of passengers or property by air between 
two points using an airworthy aircraft that has advanced 
technologies, such as distributed propulsion, vertical takeoff and 
landing, powered lift, nontraditional power systems, or autonomous 
technologies; a maximum takeoff weight of greater than 1,320 pounds; 
and is not urban air mobility).
    \148\ For these reasons and more, which are discussed in the 
following section of this preamble, FAA does not intend to limit 
services provided by automated data service providers to those that 
only support UAS operations, even if it is anticipated that proposed 
part 146 would predominantly be used to support UAS BVLOS operations 
under proposed part 108, at this time.
---------------------------------------------------------------------------

    There are inherent challenges associated with regulating technology 
services. FAA recognizes that prescriptive requirements or technical 
specifications could be outdated or obsolete before it can complete the 
rulemaking process. To balance the need to enable innovative services, 
maintain the safety and efficiency of the NAS, and be nimble enough to 
accommodate rapid technological changes, FAA proposes flexible, 
performance-based requirements that can evolve as technology advances 
in this dynamic operating environment. FAA proposes a risk-based 
regulatory approach that draws on FAA's long history and experience 
managing risk in the NAS, but also incorporates novel elements 
appropriate for the dynamic nature of the technology sector. For these 
reasons and consistent with this proposed rule's overall approach, FAA 
proposes to leverage the work and expertise of voluntary consensus 
standard bodies as it evaluates the safety and effectiveness of 
automated data service providers. FAA would rely on industry-led 
consensus standards and capitalize on the adaptability they offer. 
Parties applying to operate as an ADSP would still need to meet FAA 
requirements and any public interest requirements.
    Aircraft traffic management for BVLOS operations under proposed 
part 108 is fundamentally distinct and separate from traditional ATM. 
For traditional aviation, FAA engages in both ATC and ATM. The primary 
responsibility of ATC is the separation of aircraft. They control 
traffic in and around airports, in the terminal, and through en route 
airspace. Controllers speak directly with pilots, notifying them of 
traffic or weather statuses in their vicinity. Pilots depend on the 
instructions they receive from ATC to travel safely and efficiently. In 
contrast, air traffic managers facilitate a ``system approach'' to 
managing traffic that considers the impact of individual actions on the 
whole system. Managing disruptions in airspace capacity (for example 
caused by bad weather, traffic overloads, or emergencies) requires 
consideration of who or what may be impacted by events, and a 
coordinated mitigation effort to ensure safety and efficiency in the 
delivery of air traffic services. These services are critical to 
ensuring the safety and efficiency of the NAS.
    FAA has preliminarily concluded that the traditional model of ATM 
is not proportional, relative to the low level of risk BVLOS operations 
under part 108 would introduce to the NAS. This is especially true 
because, as proposed, FAA places operational requirements as well as 
aircraft airworthiness requirements--including SUI--on the UAS to 
mitigate the inherent risk associated with conducting BVLOS operations 
under part 108.\149\ Taking a risk-based approach, FAA does not propose 
to manage either separation of aircraft or the system-wide efficiency 
of part 108 operations through its ATC and ATM functions. Instead, to 
address the likely risk these operations may pose to other emerging 
entrants, traditional aviation, people and property on the ground, and 
the overall efficiency of the NAS, FAA proposes to create a regulatory 
framework under which operators can rely on automated data service 
providers to aggregate and disseminate information about operations--
especially to appropriately deconflict BVLOS operations. Service 
providers will still be subject to FAA oversight and review to ensure 
their services are conducted adhering to principles the public has come 
to expect from existing air traffic services, including the ability to 
access public airspace.
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    \149\ As stated earlier in this preamble, the aircraft 
airworthiness requirements proposed under part 108 aim to prevent 
loss of flight or loss of control incidents stemming from factors 
such as structural integrity, software and hardware functionality, 
performance attributes, and operational factors. The design and 
performance standards would require the UAS to withstand all 
expected flight and ground loads during its operations without 
compromising the UAS's safe operation.
---------------------------------------------------------------------------

    Under this proposal, UTM would essentially be a federated network 
of information to provide all users with

[[Page 38322]]

situational awareness of other operations in the airspace. Instead of 
FAA playing a centralized role in separation and efficiency of UA 
flights, the automated data service providers would provide information 
that operators would need to deconflict and manage the efficiency of 
their own operations. As a result, the term ``unmanned traffic 
management'' may be a misnomer. More accurately, the UTM system FAA 
proposes to adopt is better described as providing the information 
operators need to manage their own operations safely and efficiently.
    Moreover, FAA concluded that it would be neither practical nor 
efficient for FAA to model UTM services on traditional ATM. First, FAA 
could not effectively provide ATM-like services for UAS using existing 
equipment and technologies. Air traffic surveillance systems were 
designed to identify aircraft large enough to carry people on board. As 
a result, radar and other surveillance systems do not reliably detect 
UAS, which are usually significantly smaller than aircraft that 
transport people. While other objects, such as birds, are sometimes 
detected on radar, this is not consistent or predictable because the 
efficacy of finding these objects depends on terrain and other local 
conditions. As such, FAA surveillance systems are not suitable to 
reliably track small and highly maneuverable objects such as UAS. These 
systems were designed to help controllers identify, track, and separate 
manned aircraft that primarily operate above 400 feet AGL. At lower 
altitudes, differences in terrain can interfere with accurate radar 
returns. For example, there are many areas within U.S. controlled 
airspace that feature hills, valleys, mountains, and other natural 
features that radar cannot penetrate. In addition, FAA surveillance 
systems must filter out false targets generated by phenomena such as 
trucks driving on bridges. Densely populated areas may also have man-
made structures that serve as obstacles interfering with the efficacy 
of radar and other surveillance tools. In sum, FAA does not currently 
have the minimum tools and technology to provide consistent or reliable 
ATM-like services for UAS operating at 400 feet AGL and below.
    Second, even if FAA could acquire the appropriate tools and 
technology to identify and track UAS operating 400 feet AGL and below, 
FAA would nonetheless face challenges staffing these operations.\150\ 
FAA could not add these responsibilities to existing air traffic 
controllers because they would direct controllers' attention away from 
managing the rest of the traffic in the NAS and could thereby introduce 
a new hazard to traffic management for manned aircraft operating at 
higher altitudes. Accordingly, to provide ATM-like services, FAA would 
have to find a way to staff ATM operations at each of its 520 ATC tower 
facilities and 147 Terminal Radar Approach Control (TRACON) 
facilities.\151\ Such an increase in responsibilities would require an 
exponential increase in the existing air traffic controller 
workforce.\152\ FAA does not currently have the resources to 
sufficiently support that effort.
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    \150\ FAA is both the civil aviation authority and the air 
navigation service provider (ANSP) for the United States. FAA has 
statutory responsibilities to set standards and certify aircraft, 
airmen, and facilities per sections 106(g) and 40101 of 49 U.S.C. In 
addition, per 106(g) and 40103 of 49 U.S.C., FAA is responsible for 
ensuring the safe and efficient use of navigable airspace. FAA 
carries out its responsibilities by developing air traffic rules, 
assigning the use of airspace, and controlling air traffic through a 
complex network of air traffic control towers, terminal radar 
approach control facilities, air route traffic control centers, and 
flight service stations. Each day, FAA is responsible for serving 
tens of thousands of commercial and private aircraft operating in 29 
million square miles of airspace. Through its ATM system, FAA 
coordinates the movements of these aircraft to ensure they operate 
at safe distances from each other and to manage disruptions to 
normal air traffic flow. FAA's ability to manage air traffic in the 
airspace of the United States is predicated on the Agency knowing 
who is operating in the airspace and, if necessary, on being able to 
communicate with those airspace users. About 45,000 flights are 
handled by FAA ATC per day. FAA estimates 858,000 commercial drones 
will be registered by 2026; if 5% of those flew in a given day, and 
ATC provided services to those flights, it would double the number 
of flights covered.
    \151\ Available at www.faa.gov/air_traffic/by_the_numbers.
    \152\ Pang, Y., et al. Air Traffic Controller Workload Level 
Prediction using Conformalized Dynamical Graph Learning (2023), 
available at arxiv.org/pdf/2307.10559.pdf.
---------------------------------------------------------------------------

    Since ATM services are not tailored to the needs of UA operating in 
the NAS,\153\ other types of services are necessary to ensure BVLOS 
operations are safe and efficient. For the purposes of enabling BVLOS 
operations proposed in this rule, UTM services would have to include 
strategic deconfliction and conformance monitoring.\154\ In addition, 
FAA will have to create conditions for stakeholders to innovate and 
develop other technological solutions to enhance aircraft operations 
and mitigate risk. For this type of crowd-sourced data or network to 
work, everyone contributing data or other information services to the 
UTM system must be reliable and consistent. All stakeholders must have 
confidence that each service provider meets the same minimum standards, 
and that there is no ``weak link'' in the interdependent system. 
Proposed part 146 would meet this need by establishing the minimum 
standards and oversight responsibilities necessary to enable a 
successful, stakeholder-driven UTM system. FAA will also need to assess 
the procedures and operations of networks to ensure that they are 
consistent and adhering to FAA regulation and policy.
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    \153\ Unlike the ATM system that is managed by FAA, the UTM 
system relies on NAS users and service providers to provide the 
services that collectively form the UTM ecosystem.
    \154\ See proposed Sec.  108.190 regarding the requirements for 
strategic deconfliction and conformance monitoring when conducting 
certain operations under part 108.
---------------------------------------------------------------------------

B. Legal Authority To Regulate Automated Data Service Providers

    Prior to FAA Reauthorization Act of 2024, Public Law 118-63, 
section 932, which directs FAA Administrator to establish procedures, 
including rulemaking, to approve third-party service suppliers--
discussed in section II.B of this preamble--Congress has long focused 
on directing FAA's incremental approach to regulating automated data 
service providers and their services. First, Congress directed FAA to 
develop a comprehensive plan for UAS integration in FAA Modernization 
and Reform Act of 2012 (Pub. L. 112-95), codified at 49 U.S.C. 44802. 
Subsequently, Congress updated section 44802 in the Reauthorization Act 
of 2018, directing FAA to consider ``the potential use of UTM and other 
technologies to ensure the safe and lawful operation of unmanned 
aircraft in the NAS.'' \155\ Furthermore, Congress specifically 
directed FAA to create a UTM Implementation Plan.\156\ Congress 
contemplated that UTM systems would be ``privately operated'' and 
directed FAA to ``outline the roles and responsibilities of industry 
and government in establishing UTM services,'' while also ``recognizing 
the primary private sector role in the development and implementation 
of [. . .] future expanded UTM services.'' \157\ In addition, Congress 
requested the development of safety standards related to UTM services 
applicable to unmanned aircraft operations below 400 feet AGL.\158\
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    \155\ See Public Law 115-254, 342(b)(1) (2018).
    \156\ Id. at Sec.  376(c).
    \157\ Id. at Sec. Sec.  360(b)(6) and 376(c)(2).
    \158\ Id. at Sec.  376(d).
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    Second, FAA has authority to regulate air agencies under chapter 
447 of 49 U.S.C. Under statute, FAA may issue certificates to air 
agencies (49 U.S.C.

[[Page 38323]]

44702) as well as ``examine and rate'' air agencies (49 U.S.C. 44707). 
Congress defined air agencies to include certain aviation schools 
(Sec.  44707(1)), repair stations (Sec.  44707(2)), and ``other air 
agencies the Administrator decides are necessary in the public 
interest'' (Sec.  44702(3)). FAA proposes to regulate automated data 
service providers that support aircraft operations using a distributed 
computational system under this authority to regulate air 
agencies.\159\ Regulation of these automated data service providers is 
necessary in the public interest. In 49 U.S.C. 40101(d), Congress 
identified the following matters for FAA to consider as being in the 
public interest: ``assigning, maintaining, and enhancing safety and 
security'' and ``encouraging and developing civil aeronautics, 
including new aviation technology.'' Enabling automated data services 
to mitigate the potential risk that BVLOS operations could pose to the 
NAS would enhance aviation safety and aid in the development of new 
aviation technology.
---------------------------------------------------------------------------

    \159\ See 49 U.S.C. chapter 447.
---------------------------------------------------------------------------

    Lastly, and most recently, FAA Reauthorization Act of 2024 directs 
FAA Administrator to establish procedures, including rulemakings, to 
approve third-party service suppliers, including those who supply UTM 
services to support the safe integration and commercial operation of 
UAS.160 161 In accordance with this provision, FAA 
Administrator must ensure, to the maximum extent practicable, that 
industry consensus standards are included as an acceptable MOC in the 
approval process for third-party services. Further, in establishing 
this approval process, Congress directs FAA Administrator to ``define 
and implement criteria and conditions for the approval and oversight of 
third-party service suppliers that (A) could have a direct or indirect 
impact on air traffic services in the NAS and (B) require FAA 
oversight.'' \162\ In addition, the Administrator ``shall establish 
procedures by which UAS can use the capabilities and services of third-
party service suppliers to support operations.'' \163\
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    \160\ Per Sec.  932(f) of Public Law 118-63, third-party service 
supplier means ``an entity other than FAA that provides a 
distributed service that affects the safety or efficiency of the 
national airspace system, including UAS service suppliers, 
supplemental data service providers, and infrastructure providers, 
such as providers of ground-based surveillance, command-and-control, 
and information exchange to another party.'' FAA's proposal for 
defining automated data service provider, who are also referred to 
as third-party service suppliers, is in alignment with this 
definition.
    \161\ See Public Law 118-63, 932.
    \162\ Id. at Sec.  932(c)(1).
    \163\ Id. at Sec.  932(c)(2).
---------------------------------------------------------------------------

    In response to these congressional directions, FAA would establish 
the regulatory framework and the requirements for regulating automated 
data service providers as well as their service in proposed part 146. 
Automated data service providers would be regulated as air agencies; 
and FAA would rely on the use of industry standards, to the maximum 
extent practicable, to develop requirements of those services.

C. BVLOS ARC Recommendations

    In 2021, the BVLOS ARC issued recommendation TP 2.1, stating that 
``FAA should adopt a regulatory scheme for third-party services to be 
used in support of UAS BVLOS.'' The BVLOS ARC further recommended that 
FAA issue certificates to ``third-party service providers'' (including 
UTM service providers) that fall into one of seven categories based on 
the functionality of the service that is being provided. At a high 
level, proposed part 146 is based on this recommendation; however, the 
specifics of part 146 differ from the ARC recommendations in a few key 
areas.
    The BVLOS ARC recommended that FAA follow a MOC and DOC approach 
for certificating automated data services, similar to the process FAA 
adopted for broadcast Remote Identification (ID) under 14 CFR part 89. 
FAA agrees that some automated data service providers should be able to 
use a DOC to comply with regulatory requirements; however, fundamental 
differences between UTM services and remote identification mean that 
FAA cannot rely wholly on the DOC process to address safety and 
efficiency concerns.
    FAA promulgated the Remote ID rule in response to concerns about 
public safety and security. The remote identification data elements 
provide information to government officials and other people on the 
ground or in the air about UA operations. The information can be used 
to distinguish compliant airspace users from those potentially posing a 
safety or security risk. A failure of a broadcast Remote ID module 
affects a single UAS, and such a failure is unlikely to cause an unsafe 
condition beyond that which may already exist. In contrast, automated 
data services may support or manage hundreds or thousands of UAS at 
once. A service failure may have cascading impacts on other services 
and on many UAS in different parts of the NAS. In this interdependent 
system, a small failure could have outsized consequences. FAA does not 
believe the DOC and MOC model is responsive to the type of risk an 
automated data service failure could present to the UTM ecosystem. As a 
result, FAA determined that in some, but not all, circumstances, the 
potential consequences of failure demand a higher level of oversight 
and scrutiny from FAA.
    The BVLOS ARC also recommended that anyone should be able to apply 
to FAA to receive an automated data service provider certification--
with minimal information about how the provider is structured. FAA 
determined that such an approach is inconsistent with how the Agency 
regulates other users. To determine that the automated data service 
provider can reliably and consistently provide an automated data 
service, FAA needs access to information about the automated data 
service provider, its overall operating practices, and how the provider 
addresses data management, cybersecurity, and quality systems, etc. As 
such, FAA proposes to require automated data service providers obtain 
part 146 certificates. As a part of the certification process, FAA 
would establish procedures to verify the organizational capability of 
that provider and their ability to comply with FAA requirements. These 
proposed certification requirements are further discussed later in this 
preamble.
    Another BVLOS ARC recommendation was for FAA to create regulatory 
text to recognize specific UTM services.\164\ Specifically, the ARC 
recommended identifying the following service providers: networked 
remote identification, strategic deconfliction, constraints services, 
conformance monitoring, operational planning, C2, and DAA. Based on 
previous experience, FAA is concerned that such an approach would 
unintentionally hinder automated data service providers that wish to 
innovate or provide a service that adds value but that does not fit 
into one of those seven pre-defined categories. Accordingly, FAA does 
not propose to limit automated data service providers to specific pre-
defined services. Instead, FAA would leverage the use of industry 
standards and the safety objective of each automated data service's 
standards to regulate automated data service providers under proposed 
part 146.
---------------------------------------------------------------------------

    \164\ See BVLOS ARC Report, p. 157.
---------------------------------------------------------------------------

D. Overview of Proposed Part 146

    FAA proposes a new part 146, titled Automated Data Service 
Providers, in title 14 of the CFR. This part would establish the 
process by which FAA

[[Page 38324]]

would regulate automated data service providers as well as their 
services and associated networks. The purpose of part 146 is to provide 
a regulatory framework for appropriate government oversight of 
automated data services that support aircraft operations. At the same 
time, the framework is designed to be flexible enough to accommodate 
the natural evolution and development of the technologies and systems 
on which these services are based upon. Through proposed part 146, FAA 
seeks to balance the need to ensure the safety and efficiency of the 
airspace without impeding the development of new and innovative 
services that could otherwise bring services that enhance the safety of 
operations and offer new economic opportunities.
    Under proposed part 146, a person may obtain a certificate and 
authorization to provide automated data services using a distributed 
computational system for the purpose of showing compliance with the 
requirements under this chapter.\165\ While the certificate is meant to 
address the service provider's holistic ability to provide automated 
data services of a certain caliber, the service authorization is meant 
to address the individual service's capability as well as the 
provider's ability to provide that specific service--thereby 
integrating the service into the NAS for it to be used by aircraft 
operators. The person would need to submit an application to FAA for 
review. If FAA determined that the person has met FAA's requirements, 
FAA would then issue their requested part 146 certification and service 
authorization. Under this proposed rule, FAA proposes the application 
process for automated data services providers seeking part 146 
certification and service authorization. FAA also proposes the 
requirements automated data service providers would be required to 
comply with to maintain their part 146 certificate. FAA anticipates the 
creation of an electronic platform for processing applications under 
proposed part 146. This platform for managing part 146 applicants and 
automated data service providers would be available on FAA's website, 
upon finalization of this rulemaking effort.
---------------------------------------------------------------------------

    \165\ As discussed later in this preamble, FAA would define a 
distributed computational system to mean a system that relies on one 
or multiple piece(s) of software, running simultaneously on one or 
multiple computer(s), to provide a set of functions.
---------------------------------------------------------------------------

    To maximize flexibility without sacrificing safety, FAA proposes a 
two-part approval process patterned after--but not identical to--other 
FAA regulatory constructs. This process requires the data services 
provider to obtain a certificate at the organizational level and then 
obtain authorizations for the individual services it provides. This is 
comparable to the way FAA regulates part 145 repair stations. Under 
that construct, the organization must seek a certificate to operate as 
a repair station but must also hold the specific ratings necessary to 
perform a particular type of repair. Proposed part 146 is substantially 
similar in that FAA would evaluate the service provider's 
qualifications both at the organizational level and at the individual 
service level. FAA proposes to categorize services into three levels--
Service Level 1, 2, or 3--which are described in greater detail in the 
sections that follow.\166\
---------------------------------------------------------------------------

    \166\ See section XIII.F.3 of this preamble for further 
discussion on the three service levels and their corresponding level 
of oversight.
---------------------------------------------------------------------------

    The issuance of a certificate enables FAA to provide regulatory 
oversight of the applicant--corporation, organization, etc.--that 
intends to deploy the service. The certificate would indicate that the 
applicant is capable of reliably providing data services of a specific 
tier or service level. As part of the certification process, applicants 
would be required to submit information proving their ability to comply 
with the requirements of proposed part 146.\167\
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    \167\ Per Sec.  146.115, the appropriate certification 
information to submit to FAA would range from declarations of 
compliance to providing substantial data and evidence proving the 
applicant's capability to provide their service. This would depend 
on the service level that the applicant is seeking certification 
for.
---------------------------------------------------------------------------

    The automated data service provider would also have to obtain an 
FAA authorization to provide specific services. This construct enables 
FAA to provide regulatory oversight over each service an applicant 
seeks to introduce into the NAS. As part of the process for seeking 
such authorization, the service provider would have to demonstrate why 
their service is needed to support UAS operations. As a part of this 
process, certificated service providers would also have to show that 
any new service they seek to introduce into the NAS is designed in 
accordance with an FAA-accepted industry consensus standard or 
standards. This is because safety remains FAA's top priority; as a 
result, FAA will not approve experimental or unproven technologies. FAA 
must be reasonably confident that any service that will be introduced 
into the NAS has been vetted and tested by industry and other 
stakeholders to ensure that the technology is mature and interoperable 
with other UTM technologies. Requiring services to meet applicable 
standards is meant to streamline this process. By facilitating 
collaboration--including but not limited to automated data service 
providers and aircraft operators working together--FAA would be able to 
confidently maintain the safety and efficiency of the NAS.
    After FAA issues a part 146 certificate and authorizes a specific 
service, the service provider may begin providing the service. Under 
proposed part 146, FAA anticipates that most applicants would go 
through the process of applying for a certificate just one time. Once 
certificated as automated data service providers, those certificated 
providers may seek additional service authorizations as they plan to 
deploy additional services. In most situations, the certificated 
service provider would not need to adjust their certificate. However, 
if the certificated service provider seeks to provide services in a 
higher category, they may need to upgrade their certificate. In this 
scenario, FAA would not revisit the provider's certificate 
holistically. Instead, FAA would only address the additional 
requirements the provider would need to meet to obtain a higher-level 
certificate.\168\
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    \168\ For further discussion on the categories of service 
levels, see section XIII.F.3 of this preamble.
---------------------------------------------------------------------------

E. Subpart A--General

    Subpart A of proposed part 146 lays out the general requirements 
for complying with part 146. This proposed subpart describes the 
framework under which FAA would regulate service providers and their 
services. First time applicants would go through parallel FAA review 
processes to determine that the service provider, as an organization, 
and the services it seeks to provide meet FAA minimum requirements. 
This subpart also proposes the applicability of part 146 and defines 
common terms used. Lastly, this subpart discusses the proposed FAA 
requirement that prohibits anyone from engaging in fraudulent or 
deceptive practices in connection with proposed part 146.
1. Applicability (Sec.  146.1)
    FAA proposes that part 146 would apply to anyone using or seeking 
to use a distributed computational system to provide automated data 
services to support an aircraft operator's ability to comply with FAA 
regulatory requirements.\169\ FAA anticipates that

[[Page 38325]]

most part 146 providers would be third-party organizations that provide 
their services under contract to operators. However, FAA does not refer 
to these services broadly as ``third-party services'' because some 
organizations may choose to provide these services in-house instead of 
contracting with a third-party. For example, a UAS operator with an 
operating component dedicated solely to providing an automated data 
service to fulfil that company's need to support BVLOS operations would 
be required to comply with part 146. For these reasons, part 146 
requirements would apply to automated data services, irrespective of 
whether they are provided in-house or by a third-party.
---------------------------------------------------------------------------

    \169\ A distributed computational system takes the commonly 
accepted meaning in the software industry: a system that relies on 
one or multiple pieces of software, running simultaneously on one or 
multiple computer(s), to provide a set of functions.
---------------------------------------------------------------------------

    Proposed part 146 would exclude certain services that FAA regulates 
through other means. This is because FAA does not intend for proposed 
part 146 to replace, duplicate, or create redundancies with existing 
certification, authorization, or approval programs. Specifically, part 
146 would exclude those services FAA regulates as a part of the 
aircraft certification process under 14 CFR part 21. Services that meet 
a regulatory requirement for aircraft, airframe, or parts certification 
in subchapter C would continue to be evaluated through existing 
processes and regulations for their respective certifications. 
Similarly, proposed part 146 would not apply to the requirements under 
14 CFR subchapter J, including the requirements for regulating 
navigational aids under that subchapter. Those services, which pertain 
to ATC equipment and non-federal navigation systems, have an existing 
approval process, and therefore would not be subjected to part 
146.\170\
---------------------------------------------------------------------------

    \170\ AC 146-1, titled Automated Data Services, which is 
included with this docket, provides additional guidance for the 
limited subset of persons affected by this delineation.
---------------------------------------------------------------------------

    Additional exceptions to the applicability of proposed part 146 
include services provided to airspace users through LAANC UAS USS. In 
qualifying a USS to be a LAANC service provider, FAA uses its ``other 
transaction'' acquisition authority to enter into a Memorandum of 
Agreement (MOA) with such USS. Through an onboarding process with FAA, 
LAANC service providers become qualified as well as agree to abide by a 
set of documented terms and conditions regarding the technical 
administration of the service and how it is administered to the 
public.\171\ LAANC USS are fully responsible for the development and 
operation of their software applications. Proposed part 146 would 
create a redundant set of provisions for LAANC USS, and for this 
reason, FAA proposes that services provided through LAANC would not be 
subject to part 146 requirements.
---------------------------------------------------------------------------

    \171\ See 49 U.S.C. 106(l) and (m).
---------------------------------------------------------------------------

    FAA views this proposed rule as an incremental step toward 
integrating UA and other emerging technologies into the NAS, with the 
current primary objective of enabling routine UAS BVLOS operations. To 
focus on this objective, FAA anticipates that part 146 will primarily 
support proposed part 108 operations at this time. Accordingly, FAA 
proposes to except the use of automated data services provided under 
part 146 for aircraft operations with an onboard pilot in command.\172\ 
FAA added this exception because aircraft operations conducted with an 
onboard pilot in command may not share operational environments, nor 
the technology, of those that would scale operations under proposed 
part 108. On the other hand, FAA anticipates that the technological 
evolution of automated data services supporting proposed part 108 
operations may easily transition to support aircraft operations, such 
as AAM, given common technical environment and operator involvement of 
such operations.\173\ FAA may revisit this decision to include the use 
of automated data service under proposed part 146 to support manned 
operations as aviation technology advances and automated data service 
providers become essential to other types of NAS users. Under those 
circumstances, FAA would engage in additional notice and comment 
rulemaking to address specific issues associated with the new 
technology.
---------------------------------------------------------------------------

    \172\ FAA recognizes that there may be a need to use automated 
data service to support aircraft operations conducted outside of 
part 108. FAA discusses this proposal further in section XIII.F.4 of 
this preamble per the proposed requirements in Sec.  146.115.
    \173\ See FAA's Urban Air Mobility (UAM) Version 2.0 Concept of 
Operations, available at www.faa.gov/sites/faa.gov/files/Urban%20Air%20Mobility%20%28UAM%29%20Concept%20of%20Operations%202.0_0.pdf. This ConOps describes FAA's vision in potentially 
implementing UAM--a subset of Advanced Air Mobility (AAM).
---------------------------------------------------------------------------

    Finally, FAA does not intend to use part 146 to regulate any 
services that support general business functions. In addition to 
promoting safety or efficiency of the NAS, only services used by 
aircraft operators, enabling them to comply with FAA regulatory 
requirements, would fall within proposed part 146. For example, 
distributed computation system services that support general office 
functions, such as payroll, accounting, or word processing would not 
fall within proposed part 146. Nor would it apply to services that 
manage an organization's ground transportation or non-aviation-related 
supply chain services.
2. Definitions (Sec.  146.5)
    Proposed part 146 would bring a new population of air agencies 
under FAA's regulatory umbrella. These new organizations bring with 
them concepts and terminology that have not historically been part of 
FAA's lexicon. Accordingly, many of the terms frequently used in 
proposed part 146 are not currently used in other FAA regulations. Many 
of these terms relate to software engineering generally, or to 
automated data service provisioning, capabilities, and specific 
functions. Defining these terms will facilitate consistent use of a 
common lexicon and thereby assist part 146 applicants or any persons 
involved in providing or procuring automated data services. As such, 
FAA proposes the following definitions in Sec.  146.5:
    FAA proposes to define the term authorized services to mean those 
services a certificated automated data service provider is authorized 
to provide under part 146. FAA anticipates that authorized services 
could include but are not limited to: strategic deconfliction services 
for identifying flight path conflicts before takeoff and managing 
collision risk between UA; conformance monitoring to provide time-
sensitive alerts so that the UAS operator maintains their flight path; 
DAA services, which provide surveillance information or avoidance 
maneuvering instructions to operators; or micro-weather forecasting 
services that are not available from conventional NAS weather sources.
    FAA proposes that automated data service provider means a person 
using a distributed computational system to provide automated data 
services that support aircraft operations. Automated data service 
providers would encompass persons who provide their own services for 
their own operations (often referred to as vertically integrated 
companies) as well as persons who provide distributed services as a 
third-party provider. FAA anticipates automated data service providers 
will be comprised of companies, governmental entities, or other 
organizations.
    FAA proposes that a distributed computational system means a system 
that relies on one or multiple piece(s) of software, running 
simultaneously on one or multiple computer(s), to provide a set of 
functions. Automated data services would be provided through these 
systems to support aircraft

[[Page 38326]]

operations. An example of a distributed computational system is the 
infrastructure used by an entity that provides strategic deconfliction 
services to part 108 operators. In this example, the computer server 
operated by the entity that supplies the information or data processing 
to the part 108 operator is the distributed computational system.
    FAA proposes that major update means a change to the software 
version that includes substantial changes to the application 
programming interface (API), or the features and functionality, such 
that the new version is not backward compatible with previous versions. 
Major updates include a new API endpoint or signature. They constitute 
significant revisions and may fundamentally change what the service 
does or how it supports operators. An aircraft operator who does not 
make the required changes to support the new version of a major 
software update would lose functionality of the service after the 
update.
    FAA proposes that minor update means a change to the software 
version that changes the API, may include new features or 
functionality, and remains backward compatible. As a minor update may 
substantively change a service's features and functionality, users may 
be required to make changes to their aircraft and AE to integrate the 
minor version update properly. An aircraft operator who does not make 
the required changes would remain unaffected by the minor software 
update while operating on the older version.
    FAA proposes that patch update means a change to the software 
version that does not change the API and is used for backward-
compatible bug fixes and performance improvements. Patch updates often 
improve performance, fix bugs, or address security vulnerabilities but 
do not change the overall functionality or features of the service.
    FAA proposes that third-party vendor means an entity that provides 
a distributed software capability necessary for a certificated service 
provider to meet the requirements of this part but for which the 
certificated service provider does not have direct control over the 
personnel, software code, or organizational processes. Examples of 
third-party vendors, as defined by FAA in this part, would include 
cloud storage providers, cloud database infrastructure providers, and 
cloud-based network monitoring tools. When appropriate, certificated 
service providers may leverage third-party vendors to develop, deploy, 
update, or repair authorized services. The distinction between an 
automated data service provider and a third-party vendor is significant 
under part 146. Whereas the former is subject to regulatory oversight 
by FAA because it directly affects the safety and efficiency of the 
NAS, the latter refers more broadly to software and tools that entities 
regularly rely on to provide business support functions that are not 
aviation specific.
3. General Requirements (Sec.  146.10)
    Proposed Sec.  146.10 establishes the framework under which FAA 
would regulate automated data services as well as providers of those 
services. That framework would consist of two primary regulatory 
functions. The first would require entities providing automated data 
services to obtain a certificate from FAA. The second would require 
those certificated entities to obtain authorization from FAA to provide 
individual services. Proposed Sec.  146.10 would lay the foundation for 
the rest of part 146 by establishing the requirement that only 
certificated entities can provide services and that those services they 
provide require FAA authorization.
4. Falsification, Reproduction, Alteration, or Omission (Sec.  146.15)
    For FAA to properly perform its oversight role, it must receive 
candid and truthful communications from regulated parties. Proposed 
Sec.  146.15 would require truthful and candid submissions in 
applications, records, or reports used to comply with part 146. Failure 
to do so by for example, purposefully falsifying, reproducing, 
altering, omitting information from FAA could lead FAA to deny, 
suspend, or revoke a certificate or authorization or issue a civil 
penalty.
    Automated data services must be properly and transparently 
regulated as they support operations affecting the U.S. airspace's 
safety and efficiency. FAA requires factual and accurate information to 
effectively conduct regulation and ensure safety. As such, FAA 
proposes, in Sec.  146.15(a), to prohibit the act of any fraudulent or 
intentionally false entries in any application, record, or report made 
under this part, as well as any reproduction or alteration of such 
documents for fraudulent purposes. In addition, FAA proposes in Sec.  
146.15(b) to prohibit persons from knowingly concealing a material fact 
in any application or record used to show compliance with FAA 
requirements. This would apply to applications and records related to 
both provider certificates and service authorizations, and any other 
information a person submits to FAA under proposed part 146.
    Lastly, to hold persons accountable for actions specified in 
proposed Sec.  146.15(a) and (b), FAA proposes in Sec.  146.15(c) that 
any such fraudulent or prohibited act or omissions conducted with 
regards to proposed part 146 to be subject to FAA penalties. Those 
penalties include the suspension or revocation of any certificate, 
approval, or authorization issued by FAA, a civil penalty, or the 
denial of an application for part 146 certification and service 
authorization. By enforcing penalties due to non-compliance with the 
candor and truthfulness requirements, FAA anticipates that it would 
increase compliance with the requirements proposed under part 146 and 
therefore ensure the safety and efficiency of the U.S. airspace.
    Of note, while proposed Sec.  146.15 authorizes FAA to take action 
for a regulated party's failure to meet its duty of candor and 
truthfulness in interactions with FAA, FAA may take certificate actions 
for other reasons. All NAS participants play a role in ensuring safe 
and efficient operations that are consistent with the public interest. 
In the age of advanced aviation, those participants will notably 
include automated data service providers who must, to contribute to a 
safe and efficient airspace, comply with rules and be held accountable 
for their actions. For that reason, it is worth highlighting that 49 
U.S.C. 44709(b) authorizes FAA to amend, modify, suspend, or revoke any 
part of certificate when it decides that safety in air commerce or air 
transportation along with the public interest requires that action.

F. Subpart B--Certificate

    Part 146 would establish a new type of air agency requiring an FAA-
issued certificate for certain automated data service providers that 
support aircraft operations using a distributed computational system. 
Many of the advanced UAS operations in this proposed rule would rely on 
automated data services to help ensure the safety and efficiency of 
those operations. Furthermore, these advanced UAS operations would rely 
on the existence of an integrated and cooperative ecosystem of 
services. FAA anticipates that the data service providers would provide 
services to their specific end users, creating an information exchange 
between those with privity of contract. However, to be successful, the 
ecosystem would also have to rely on other data service providers 
exchanging information continuously with each

[[Page 38327]]

other to provide operators with the information they need about the 
operating environment for safe and efficient operations. Collectively, 
the service providers would create a federated, non-centralized network 
in which each data service provider contributes information that other 
data service providers rely on to service their own individual users. 
In this operating environment, as proposed, each provider would rely on 
others in the network to provide accurate and reliable information; 
together automated data service providers would be able to provide 
accurate and reliable information to their users. Though the quality of 
the network relies on these individual contributions, as peer 
participants, the individual service providers have no authority to 
hold one another accountable for providing accurate and reliable 
information. To help address this problem, FAA proposes to set minimum 
requirements to help ensure that only qualified automated data service 
providers can participate in these networks. Proposed subpart B 
establishes those requirements and describes how to obtain a 
certificate to provide automated data services under proposed part 146.
1. Application (Sec.  146.100)
    FAA proposes in Sec.  146.100 that each person seeking to be 
certificated as an automated data service provider would be required to 
submit an application in a form and manner acceptable to the 
Administrator. The applicant would be required to provide all the 
information identified in subpart B, which is described in the 
following section of this preamble. FAA anticipates establishing a web-
based application process that applicants could use to provide their 
materials electronically. FAA would provide instructions for submitting 
an application in guidance or other reference materials.\174\
---------------------------------------------------------------------------

    \174\ AC 146-1, Automated Data Services, would provide 
applicants with the process for obtaining a part 146 certification 
and service authorization. This AC is available in this rulemaking 
docket.
---------------------------------------------------------------------------

2. Applicant Information (Sec.  146.105)
    Proposed Sec.  146.105 would require the applicant to provide 
general business information about the organization seeking a part 146 
certificate.
    Proposed Sec.  146.105(a) would require the applicant to submit the 
name, address of principal place of business, telephone number, and 
email address for the person seeking a certificate. FAA would use this 
standard contact information to identify, locate, and communicate with 
the organization. This information is necessary so that FAA can 
expeditiously reach the service provider to conduct oversight 
activities, as well as to follow up with requests for information when 
reviewing certification and authorization requests.
    Proposed Sec.  146.105(b) would require the applicant to submit 
documentation related to their ownership structure. Corporate 
applicants would provide information identifying anyone who owns five 
percent or more of the total voting stock. If that stockholder is not 
the sole beneficial owner, the applicant would also provide the name 
and address of the beneficial owners. For purposes of this section, 
stock owned directly or indirectly by an individual's spouse, child, 
grandchild, or parent is attributed to the individual. This means that 
the aggregate stock of the individual and any of these relatives would 
be considered together for purposes of determining whether the 
individual owned at least five percent of the stock. An individual 
could not avoid the disclosure requirement in this paragraph by 
distributing stock among the relatives identified in this section in an 
effort to lower their ownership level below the reporting threshold. 
For non-corporate entities, FAA requests information about anyone with 
a financial interest in the organization.
    An important part of determining whether an applicant is qualified 
to hold a certificate is understanding who controls or influences the 
organization and determining whether they are capable of complying with 
FAA's proposed requirements. In the case of corporate entities, FAA 
decided to set the voting stock ownership reporting requirement at 5 
percent or more because it considers that anyone below the 5 percent 
threshold is likely unable to exert control or influence over the 
organization. This information serves several purposes. First, FAA 
would use this information to determine whether the organization or one 
of the beneficial owners thereof previously held an ownership or 
management position with a part 146 certificated service provider. As 
explained in the sections that follow, information related to 
individuals or entities with ownership interests and individuals 
holding management positions in the applicant's organization is 
relevant to FAA's application evaluation. If any of these people 
contributed materially to circumstances that resulted in FAA taking 
adverse action against a previous certificated service provider, FAA 
may deny the application.\175\ Requiring the applicant to identify the 
individuals and entities that would exercise some kind of control over 
the organization would help prevent an unqualified applicant from 
disguising their ownership structure to ``reincarnate'' into a new 
organization.
---------------------------------------------------------------------------

    \175\ See discussion of proposed Sec.  146.120 in section 
XIII.F.5 of this preamble.
---------------------------------------------------------------------------

    Second, this (Ownership) information would help FAA understand 
whether those exercising control over the organization were otherwise 
unqualified because of prohibitions on their ability to do business in 
the U.S.
    Proposed paragraph (c) would require the applicant to provide the 
name of an accountable executive that exercises authority over the 
organization's operations. For purposes of this section, the term 
accountable executive would take the same meaning as in 14 CFR 5.25. As 
discussed later in this preamble, FAA proposes to require part 146 
certificated service providers to incorporate certain SMS provisions 
per the requirements in 14 CFR part 5. One such requirement is to 
identify an accountable executive, per Sec.  5.25.
    In paragraph (d) of this section, FAA would require the applicant 
to demonstrate that they are authorized to conduct business in the 
United States. If the individuals or entities exercising control over 
the organization are prohibited or otherwise unable to do business in 
the United States, FAA would not issue them a certificate. FAA is 
cognizant that the automated data services contemplated under this rule 
would contain a trove of digital information about American citizens, 
patterns of life, and commercial activities that criminal organizations 
and foreign adversaries could seek to exploit. The information FAA 
seeks about authorization and ownership would help prevent someone 
prohibited from doing business in the United States from disguising 
themselves as a legitimate organization.
    Proposed paragraph (e) would require applicants provide any other 
relevant documentation the Administrator deems necessary to verify 
their identity, corporate ownership, and authority to conduct business 
in the United States. FAA would use this documentation to verify that 
the certificated service provider is the person permitted to conduct 
business in the United States. This information is also important 
because FAA expects foreign U-Space and UTM companies to seek 
reciprocal certification in the U.S. Under this provision, FAA would 
provide a means to verify such applicants and determine whether they 
are capable of doing business in the United States, if applicable.

[[Page 38328]]

3. Service Levels (Sec.  146.110)
    FAA proposes a risk-based approach to the service provider 
certification process that is based on the operation the provider seeks 
to support. As stated earlier in this preamble, FAA developed the 
proposed aircraft, personnel, and operational requirements to primarily 
address the risk BVLOS operations could introduce to the NAS. These 
requirements include important risk mitigations designed to help ensure 
the safety and efficiency of the NAS, but also the safety and security 
of people and property on the ground. FAA's oversight role in proposed 
part 146 would be to help ensure that the automated data service an 
operator uses to meet their part 108 requirements is provided by a 
provider that is qualified by FAA. It follows, then, that FAA does not 
intend for part 146 to provide a redundant set of provisions to 
mitigate the risk already included in the proposed part 108 
requirement. Instead, proposed part 146 would address the residual risk 
that is not already addressed through part 108 provisions. Because 
proposed part 108 operator and aircraft requirements provide for many 
safety mitigations, part 108-compliant aircraft and operations 
therefore pose a relatively small residual risk profile.\176\
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    \176\ Consistent with this risk-based approach, operations 
conducted under part 107 are considered lower risk than those under 
part 108.
---------------------------------------------------------------------------

    FAA proposes to regulate part 146 service providers that support 
part 108 operations in a way that is commensurate with the residual 
risk these aircraft and operations are assumed to pose to the NAS. 
Therefore, FAA proposes in Sec.  146.110(b)(1) to categorize services 
that support part 108 operations as Service Level 1.\177\ FAA 
anticipates, however, that some aircraft manufacturers and operators 
may seek regulatory relief to deviate from the requirements in proposed 
part 108. As discussed in the preceding paragraphs, FAA's balance of 
risk mitigations depends on compliance with all of FAA's part 108 
regulations. Operations that rely on regulatory relief may disrupt this 
balance and, as a result, increase the residual risk associated with 
those operations. As such, in proposed Sec.  146.110(b)(2), FAA would 
identify these operations that require regulatory relief from part 108 
as those that require services categorized as Service Level 2.\178\
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    \177\ Subsequently, in proposed Sec.  146.115(a), FAA would 
allow Service Level 1 providers to demonstrate compliance with the 
applicable certificate requirements using a declaration of 
compliance. Filing a declaration of compliance represents a 
relatively low burden for the applicant to demonstrate compliance. 
FAA determined that this lower burden would be an appropriate way to 
address the residual risk compliant operations could pose. Proposed 
Sec.  146.115(a) is discussed in more detail in the following 
section.
    \178\ Consistent with FAA's risk-based approach, FAA proposes 
that this increase in risk warrants additional scrutiny and 
verification of the service provider's applications. Accordingly, 
FAA proposes in Sec.  146.115(b), discussed in more detail in the 
following section, to require the service provider submit 
documentation describing how the applicant meets the requirements. 
This means that a Service Level 2 provider would not be able to rely 
on a declaration of compliance. The increased risk profile would 
mean that the application would have to submit documentation 
describing what it will do to meet application requirements. Whereas 
a Service Level 1 applicant could submit an attestation that they 
comply, a Service Level 2 applicant would submit an attestation with 
explanations explaining how they comply.
---------------------------------------------------------------------------

    Any services that do not meet the requirements of Service Levels 1 
or 2 would fall within Service Level 3. Service Level 3 would be 
reserved for operations with the highest level of residual risk--for 
example BVLOS operations conducted outside 14 CFR part 108.\179\ FAA 
anticipates that not all operators will seek to operate under proposed 
part 108. In the absence of the proposed part 108 mitigations designed 
to address risk associated with BVLOS operations, these operations may 
present unmitigated risks to the NAS. As such, FAA proposes in Sec.  
146.110(b)(3) to identify these services as Service Level 3. Under 
these circumstances, FAA would reserve the right to apply the highest 
level of review--including FAA oversight and regulatory requirements--
to an applicant's qualifications for Service Level 3 
certification.\180\
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    \179\ As stated earlier in this preamble, FAA proposes a risk-
based approach to the service provider certification process that is 
based on the operation the provider seeks to support.
    \180\ Consistent with FAA's risk-based approach, FAA would 
require in proposed Sec.  146.115(c) that applicants for Service 
Level 3 certification to submit documentation and supporting data 
demonstrating that the applicant meet applicable requirements. 
Whereas a Service Level 2 provider would be required to describe how 
they meet the requirements, a Service Level 3 provider would have to 
provide data that proves that they meet the requirements. FAA 
anticipates that this could include technical specifications, test 
results, and other data and documentation showing the effectiveness 
of the applicant's system. Proposed Sec.  146.115(c) is discussed in 
more detail in the following section.
---------------------------------------------------------------------------

    As part of the application process for part 146, applicants would 
be required to identify the service level for which they seek 
certification. Specifically, FAA proposes to require each applicant to 
identify whether they seek certification for the provision of services 
categorized as Service Levels 1, 2, or 3. This service level 
identification is meant to guide applicants through the application 
process for part 146 certification and subsequent service 
authorization. By identifying their service level, the applicants would 
then be prompted to substantiate their application package with the 
appropriate certification requirements, per proposed Sec.  146.115 
which is discussed further in the following section. Based on projected 
demand for BVLOS operations, FAA anticipates that the majority of 
applicants will seek a Service Level 1 certification, a modest number 
of applicants will seek Service Level 2 certification, and few, if any, 
applicants will seek a Service Level 3 certification. Though FAA does 
not anticipate significant demand for Service Level 3 certificates, FAA 
decided to propose this level to ensure that, as operations and support 
services evolve, there would be a regulatory path in place to certify 
providers of new or unforeseen capabilities.
    Table 5 presents a summary of the provisions FAA proposes in Sec.  
146.110, which describe the service levels and their corresponding 
operational envelope. FAA proposes this risk-based framework to provide 
a level of oversight that is proportionate to the complexity of the 
operation supported by the automated data service provided under 
proposed part 146. FAA seeks comment on this proposed framework for 
categorizing service levels under part 146. Specifically, the Agency 
invites comment to determine whether this triage of service levels--
based on mitigating any residual risk that may be added to the NAS due 
to the aircraft operation--is the best way to incrementally introduce 
automated data service providers as well as their services into the 
NAS.

                         Table 5--Service Levels
------------------------------------------------------------------------
             Service level                 Type of part 108 operations
------------------------------------------------------------------------
Level 1................................  Services to support part 108
                                          operations without regulatory
                                          relief.
Level 2................................  Services to support part 108
                                          operations with regulatory
                                          relief.
Level 3................................  Services that do not fall
                                          within Service Levels 1 or 2,
                                          that support operations that
                                          are not conducted under part
                                          108 of this chapter.
------------------------------------------------------------------------

4. Certification Requirements (Sec.  146.115)
    Proposed Sec.  146.115 describes the necessary information 
applicants need to submit to FAA to determine their qualification for 
part 146 certification. After applicants identify their service level 
for certification under proposed Sec.  146.110, applicants would then 
be prompted under proposed Sec.  146.115 to substantiate their 
application package

[[Page 38329]]

by submitting the appropriate qualification information, corresponding 
to the identified service level.\181\ This substantiated information 
the applicant provides must be submitted in a form and manner 
acceptable to the Administrator, which would correspond with the 
service level of each service. Under this construct, automated data 
service providers applying for multiple service authorizations along 
with their part 146 certificate would submit their certification 
information to correspond to the highest service level they seek to be 
certificated under.\182\
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    \181\ As stated earlier in this preamble, FAA believes that 
structuring this parallel application process supports FAA vision in 
efficiently reviewing application for part 146 certification and 
service authorization. Under this parallel process, applicants would 
be able to undergo the application process in a more efficient 
manner. This application structure would also reduce the likelihood 
of expending unnecessary time and resources, by both FAA and the 
applicant, on an application for a certificate without an associated 
application for an automated service, only to later discover that 
the applicant may not even be able to market or deploy the requested 
service. For further discussion on subpart C, service authorization 
requirements, see section XIII.G of this preamble.
    \182\ FAA intends on publishing an AC titled Automated Data 
Service Provider Certification and Service Authorization, AC 146-1, 
to guide potential service providers through the application process 
for part 146 certification and service authorization. This AC would 
inform applicants on the proper information that would be required 
to accompany their application, per the requested certificate 
service levels (service level 1, 2, or 3) and specific service. FAA 
invites public comments on this AC, which accompanies this proposed 
rulemaking, and is available on FAA's docket.
---------------------------------------------------------------------------

    Proposed Sec.  146.115(a) would require applicants for a Service 
Level 1 certificate to submit a DOC, attesting to their ability to meet 
the requirements of subparts D and E of proposed part 146, both of 
which are discussed in more detail below. As stated earlier, proposed 
part 108 operations would have many existing mitigations in place, 
therefore rendering Service Level 1 services appropriate to support 
part 108 operations. FAA would allow Service Level 1 providers to 
demonstrate their compliance with the applicable certificate 
requirements using a DOC. Filing a DOC represents a relatively low 
burden for the applicant to demonstrate compliance. FAA determined that 
this lower burden would be an appropriate way to address the residual 
risk that compliant part 108 operations could pose to the NAS. As such, 
for providing Service Level 1 services, the applicant would be required 
to establish their compliance with proposed part 146 requirements by 
declaring to FAA that they have systems and processes in place that 
meet the requirements of subparts D and E of proposed part 146. The 
requirements for proposed subparts D and E are described in detail in 
subsequent sections.
    Proposed Sec.  146.115(b) would require applicants for a Service 
Level 2 certificate to submit documentation to supplement the 
declarations of compliance to FAA describing their ability to meet the 
requirement of subparts D and E of proposed part 146. As stated 
earlier, Service Level 2 services are those that may be used to support 
part 108 operations that require the use of regulatory relief; such 
operations may introduce additional risk to the NAS. As a result of 
this increased risk, a service provider seeking to support such 
operations would also have to substantiate their application. This 
means the service provider would have to submit an application that 
includes documentation describing what the applicant would do to meet 
part 146 requirements. Whereas a Service Level 1 applicant would have 
to submit an attestation stating that they comply with part 146 
requirements, a Service Level 2 applicant would have to submit an 
attestation explaining how they will comply with part 146 requirements.
    For these reasons, FAA would require applicants for Service Level 2 
certification to substantiate their application with a description of 
how they will comply with part 146 requirements. To demonstrate their 
ability to comply with subpart D, the applicant would be required to 
provide a declaration as well as a description explaining how they are 
able to comply with each requirement in that subpart. Similarly, to 
demonstrate their ability to comply with subpart E, the applicant would 
be required to provide a declaration as well as a description 
explaining how they are able to comply with each requirement in that 
subpart. The requirements for proposed subparts D and E are described 
in detail in subsequent sections.
    Lastly, applicants seeking a Service Level 3 certification would be 
required to supplement their declarations of compliance with the 
submission of certain documentation or supporting data to demonstrate 
their ability to comply with subparts D and E of proposed part 146. FAA 
would require providers of Service Level 3 services to significantly 
substantiate their application package with evidentiary data to 
demonstrate their capability to comply. Whereas a Service Level 1 
provider would be required to declare they meet the requirements, and a 
Service Level 2 provider would be required to declare and describe how 
they meet the requirements, a Service Level 3 provider would have to 
declare and provide data that proves they meet the requirements. FAA 
anticipates that substantiating data could include technical 
specifications, test results, and other data and documentation showing 
the effectiveness of the applicant's system. The requirements for 
proposed subparts D and E are described in detail in subsequent 
sections.
    Special provisions would apply to applicants seeking a proposed 
part 146 certificate for the first time. Proposed Sec.  146.115(d) 
would require anyone seeking a certificate for the first time to 
simultaneously submit an application for their first service 
authorization as well. Under this provision, FAA would issue a 
certificate only to those applicants who demonstrate that they are 
ready to provide services. FAA would not devote resources toward 
issuing a certificate to an entity that is unprepared to begin 
providing services.
    As a global leader in aviation safety and efficiency, FAA is also a 
strong proponent of international harmonization. In Sec.  146.115(e), 
FAA proposes to provide an avenue for qualifying foreign-based 
certificated service providers to operate in the United States. 
Specifically, FAA proposes that a service provider who presents proof 
of an authorization to provide automated data services from a country 
with which the United States has a bilateral safety agreement covering 
the provision of data services comparable to those in part 146, may be 
deemed to meet the application requirements in Sec.  146.115.\183\ 
Proof of an authorization should include corporate documents 
establishing ownership and control of the entity. For example, in 2022, 
the European Aviation Safety Agency (EASA) began drafting regulations 
for U-Space Service Providers (USSP) providing automated data services 
in the European Union. Those regulations were effective as of 2023. 
Under those regulations, USSP gain certification from any European 
Union Member State or from EASA and deploy their services in U-Space 
airspace regions authorized by their certificate. Reciprocity would 
markedly simplify and streamline the introduction of foreign-based 
certificated service providers into the U.S. airspace, while ensuring 
FAA has sufficient oversight.
    FAA would facilitate the creation of a reciprocal certification 
process. FAA and many other civil aviation authorities already have 
processes in place to recognize each other's certifications for 
aircraft, avionics, and other systems through existing bilateral 
aviation safety agreements. By way of a

[[Page 38330]]

similar bilateral aviation safety agreement, FAA may find a foreign-
based service provider's certification to be in alignment with part 146 
requirements. That said, foreign qualification does not guarantee that 
FAA would determine the foreign-based certificated service provider 
meets all requirements in proposed part 146. FAA reserves the right to 
consider the certificated foreign-based service provider's ability to 
comply with all the proposed part 146 requirements.
    By enabling the process of reciprocity, FAA would incentivize the 
introduction of foreign-based services that have been proven 
successful--so long as they meet all proposed requirements in part 146. 
Proposed Sec.  146.115(e) would allow FAA to continue its global 
harmonization efforts.
5. Evaluation of Application (Sec.  146.120)
    Proposed Sec.  146.120 would establish the terms under which FAA 
would evaluate a part 146 certificate application. Once an applicant 
submits all the required information for part 146 certification, 
proposed paragraph (a) would authorize FAA to review the application 
and decide whether to approve or deny the application. To facilitate 
the evaluation, proposed paragraph (a) would also allow FAA to request 
supplemental information from the applicant at any time during the 
application process.
    Proposed paragraph (b) would authorize FAA to issue a part 146 
certificate to an applicant that demonstrates they meet the 
requirements for obtaining a certificate--these are identified in 
proposed Sec.  146.115 and discussed in the preceding sections. 
Paragraph (b) would also authorize FAA to place conditions or 
limitations on the certificate as necessary.
    Proposed paragraph (c) lists the bases on which FAA may deny a 
request for a certificate, including:
    (1) the applicant does not meet the requirements of proposed part 
146;
    (2) the applicant holds a part 146 certificate that is under 
suspension or is in the process of being revoked or suspended;
    (3) the applicant previously held a part 146 certificate that was 
revoked;
    (4) the applicant has filled or is intending to fill a management 
position with an individual who exercised control over or who held the 
same or a similar position with a certificated service provider under 
this part whose certificate was revoked or suspended, or is in the 
process of being revoked or suspended, and that individual materially 
contributed to the circumstances resulting in the revocation or 
suspension;
    (5) an individual who will have control over or substantial 
ownership interest in the applicant had the same or similar control or 
interest in a certificated service provider whose certificate was 
revoked or suspended, or is in the process of being revoked or 
suspended, and that individual materially contributed to the resulting 
revocation or suspension; or
    (6) for failing to comply with other applicable legal requirements. 
FAA is responsible for maintaining the safety and efficiency of the 
NAS. If FAA believes that an applicant is not reliable or could 
otherwise introduce a hazard into the NAS, then FAA would deny the 
application. FAA would also look to ensure that an automated data 
service provider from another country is authorized or is not otherwise 
prohibited from conducting business in the United States. None of these 
factors is dispositive; however, they provide valuable information for 
FAA to consider when evaluating whether the applicant is willing and 
able to comply with proposed part 146. Though FAA could deny the 
application based on any of these factors, FAA maintains its discretion 
to make its decision in the interest of safety.
6. Obligation to Update (Sec.  146.125)
    To ensure that a certificate application is based on accurate and 
relevant information, proposed Sec.  146.125 would require an applicant 
to keep their materials up to date until they receive a decision from 
FAA. This applicant may be an automated data service provider 
submitting their application for FAA certification and service 
authorization for the very first time, or they may be a certificated 
service provider submitting an application to amend their part 146 
certification. Under this provision, FAA would provide applicants with 
the opportunity to amend their application prior to FAA issuing its 
decision.
    For example, an applicant may have a change in ownership structure; 
or an applicant might upgrade their system in a way that changes the 
way the system interfaces with other systems. In such instances, 
proposed Sec.  146.125 would require the automated data service 
provider to provide information about the change to FAA. In order to 
make accurate decisions about an applicant's ability to comply with 
proposed part 146, FAA must have the most current information available 
at the time it makes its decision. As such, FAA would require the 
applicant to report any changes to their application in a form and 
manner acceptable to the Administrator. This is crucial for FAA to be 
aware of the statuses and dealings of persons under the Agency's 
purview. As such, FAA would require that the applicant, whether it be a 
first time or returning applicant, to report their changes to FAA 
within 10 days of being aware of the change. FAA anticipates that 10 
days would provide the certificated provider or applicant with 
sufficient time to report their changes to FAA.
7. Term of a Part 146 Certificate (Sec.  146.130)
    Under proposed Sec.  146.130(a), a part 146 certificate would 
remain valid until it is either surrendered by the service provider or 
revoked or suspended by FAA. In other words, a certificate issued under 
proposed part 146 would not have an expiration date. Nonetheless, FAA 
may revoke or suspend a certificate if it finds that the certificated 
service provider is not in compliance with FAA requirements.
    FAA proposes for a part 146 certificate to remain in effect 
indefinitely, with no requirement to renew or reissue the certificate 
after a set time, because there is no safety basis for FAA to levy such 
a requirement. Once a certificate is issued, the certificated service 
provider has an ongoing obligation to maintain their certification; 
this means they would be required by proposed part 146 to continue to 
operate in ways consistent with the privileges of the certificate. This 
includes maintaining an SMS, having change management procedures, 
reporting certain off-nominal behaviors to FAA, and addressing service 
difficulty reports from operators.\184\ The totality of these ongoing 
certificate requirements places the certificated service provider in a 
position of being responsible for proactively managing risk and 
remaining accountable to FAA for compliance.
---------------------------------------------------------------------------

    \184\ FAA's proposed provisions for each of these requirements 
are further discussed in section XIII.H of this preamble; the 
corresponding regulatory text is in subpart D of proposed part 146.
---------------------------------------------------------------------------

    In practice, FAA expects to have ongoing contact with certificated 
service providers through separate processes defined in subpart E as 
authorized services go through routine software update cycles. For 
example, certificated service providers would notify or seek approval 
from FAA when making certain software updates, which is described in 
subpart E. Such software update notifications, which would happen 
periodically based on the service provider's deployment timeline

[[Page 38331]]

rather than arbitrary FAA-defined intervals, would give FAA 
opportunities to verify continued compliance with the service 
provider's certificate requirements. Conversely, an absence of software 
update notifications over a long period--at least a year, given the 
typical pace of software development lifecycles--may signal to FAA the 
need to initiate an inspection under its regulatory authority to verify 
whether the service provider complies with its certificate 
requirements. This approach enables FAA to provide a risk-proportionate 
degree of oversight and reduces unnecessary inspection and certificate 
review activities when there is no evidence that may indicate a safety 
or compliance issue.
    A previously certificated automated data service provider that 
seeks to offer services of a higher service level than allowed under 
its original certificate (for example, seeking to provide Service Level 
2 services, when it was certificated for Service Level 1 services) 
would need to submit a new application for certification per the 
provisions of proposed Sec.  146.130(b). However, the operator would 
only need to provide information relevant to the new or amended 
service. For example, if an automated data service provider is 
initially certificated for Service Level 1 services and then decides 
that it also wants to deploy Service Level 2 services, the automated 
data service provider would need to submit only the necessary 
information that is relevant for FAA to evaluate and determine whether 
the automated data service provider is qualified to be certificated as 
a Service Level 2 service provider, along with the associated level 2 
service authorization request.
    Lastly, proposed paragraph (c) would prohibit an automated data 
service provider from transferring its certificate to another person 
without FAA's express approval. This would include the prohibition of 
transfers in the event an automated data service provider sells or 
transfers its assets to another entity. In such cases, the new person 
would be required to apply for a part 146 certificate; this allows FAA 
to verify that the person meets part 146 requirements. FAA proposes to 
prohibit the transfer of part 146 certificates from one organization to 
another--including the transfer of a certificate in the event of 
bankruptcy--without approval from the Administrator. By doing so, FAA 
seeks to prevent the creation of loopholes, which could have allowed 
persons to circumvent FAA application and evaluation process proposed 
under part 146.

G. Subpart C--Service Authorizations

    FAA proposes that an automated data service provider would have to 
demonstrate its qualifications in two ways. The first would be by 
obtaining a certificate, as discussed in the preceding subpart. The 
second would be by obtaining FAA authorization to provide a specific 
service or services. Subpart C proposes the requirements for obtaining 
these service authorizations. The following sections describe the 
process by which automated data service providers may request and be 
issued an FAA service authorization under proposed subpart C of part 
146.
1. Request for Authorization (Sec.  146.200)
    Proposed Sec.  146.200 lays out the general requirements to obtain 
an authorization to provide a service under proposed part 146. This is 
to help ensure that a specific automated data service meets a defined 
set of technical and performance capabilities based on an industry 
consensus standard. The authorization process would also ensure that 
the applicant is capable of providing that service in accordance with 
part 146 requirements. To verify an applicant's ability to comply with 
proposed service authorization requirements, FAA proposes in paragraph 
(a) that any person seeking authorization to provide an automated data 
service under part 146 would be required to submit the information 
identified in subpart C in a form and manner acceptable to the 
Administrator.
    In addition, proposed paragraph (b) would prohibit anyone from 
obtaining a service authorization without a valid service provider 
certificate. This reiterates FAA's proposed requirement that only 
service providers that already hold a certificate or service providers 
applying to obtain a certificate, may apply for a service 
authorization. For first-time applicants, this means that FAA processes 
the certificate and the initial service authorization application 
together. The process is designed to help ensure that FAA focuses its 
resources on evaluating only those service providers with valid part 
146 certificates (or in the process of applying for certificates).
    In the subsequent sections of this preamble, FAA discusses the 
proposed process for requesting a service authorization, the specific 
requirements, and FAA's evaluations of those requests.
2. Authorization Requirements (Sec.  146.205)
    Proposed Sec.  146.205 would establish the requirements for 
obtaining a service authorization. The purpose of these requirements 
would be to provide a minimum level of information FAA would need to 
verify that the service is designed to meet minimum performance 
requirements, and that the service provider is capable of providing the 
service at its respective service level.\185\
---------------------------------------------------------------------------

    \185\ See sections XIII.F.3 and XIII.F.4 of this preamble for 
the discussion on the various service levels and the information the 
applicant would need to submit to FAA, per the identified service 
level, in accordance with proposed Sec. Sec.  146.110 and 146.115.
---------------------------------------------------------------------------

    Proposed paragraph (a) provides an overview of the application 
process. This paragraph establishes five principal steps an applicant 
must take to apply for a service authorization under part 146. First, 
the applicant must establish the minimum performance requirements for 
the service they seek to provide. Proposed paragraph (b) describes how 
to set those minimum performance requirements. Second, the applicant 
must demonstrate that they are capable of meeting those minimum 
performance requirements. Proposed paragraph (c) describes how the 
applicant would do this. Third, the applicant must demonstrate that the 
service meets the automated data exchange requirements and software 
update requirements in proposed subpart E. Fourth, the applicant must 
show that the service would support an aircraft operator's ability to 
comply with an FAA operating requirement. Finally, the applicant must 
demonstrate that the automated data service is designed in accordance 
with a published industry consensus standard. These five principal 
steps are discussed in more detail as follows.
i. Establish Minimum Performance Requirements
    FAA is taking a flexible approach in regulating automated data 
services. This includes allowing applicants to identify and establish 
the minimum performance requirements for each automated data service 
they seek to provide, within certain parameters. The minimum 
performance requirements must be based on an industry consensus 
standard and support compliance with FAA operating requirements. 
Proposed paragraph (b) provides additional information on how to 
establish the minimum performance requirements. Under that provision, 
the applicant would be required to submit the following information.
    First, the applicant must submit an overview describing the service 
and its intended use. This would include identifying the service, 
explaining what it does, and what kind of operations the service would 
support. By requiring an

[[Page 38332]]

applicant to describe the automated data service and its intended use, 
FAA would identify and verify the specific type of service the 
applicant seeks to deploy. Using this information, FAA would be able to 
determine whether the automated data service is within the scope of 
services FAA may authorize under proposed part 146. If the service is 
not within the scope of part 146, FAA could provide this feedback to 
the applicant prior to them unnecessarily devoting additional resources 
to the application.
    Second, the applicant must provide FAA with all representations it 
makes to service users regarding the capabilities, quality-of-service, 
limitations, and responsibilities of the service provider and 
responsibilities of the service user related to the authorized service. 
Representations to service users refers to advertisements the automated 
data service provider uses to procure business with aircraft operators 
for the authorized service. FAA would use the service provider's 
representations to service users to set baseline expectations for how 
the service should perform. Other minimum requirements, such as 
interoperability with other national systems and FAA regulations may 
apply. FAA anticipates that users will rely on data services to meet 
other requirements in FAA's regulations. Users--and by extension the 
UTM ecosystem--rely on those representations to conduct BVLOS 
operations safely and efficiently. As a part of the authorization 
process, FAA would verify that the data service capabilities meet the 
provider's safety and efficiency representations. FAA would need this 
information to validate the service's capability and functionality 
during the application process. FAA would also use these 
representations to set the baseline at which it would hold the service 
provider accountable for meeting its own minimum performance standards.
    Third, the applicant must submit technical specifications 
describing the service's system architecture and functionality. FAA 
would use this information to understand the service and its functions, 
as well as how it is represented as part of the UTM network--i.e., how 
the service interacts with other automated data service providers or 
participants of the UTM ecosystem. In addition, FAA would use the 
technical specifications to perform these validation activities 
regarding a service's function, capabilities, and limits, which are 
discussed in the prior paragraph.
ii. Demonstrating Applicant's Capability
    Proposed paragraph (c) of Sec.  146.205 requires the applicant to 
submit specific data and documentation regarding their service to 
demonstrate their capability of meeting the minimum performance 
requirements established in paragraph (b) of Sec.  146.205. The way an 
applicant demonstrates their capability and the type of data and 
documentation would depend on the service level of the automated data 
service, which must be submitted in a in a form and manner acceptable 
to the Administrator. As such, in accordance with Sec.  146.115, the 
applicant would be required to provide FAA with the following 
information to demonstrate their ability to provide an automated data 
service in accordance with proposed part 146 requirements.\186\
---------------------------------------------------------------------------

    \186\ Proposed Sec.  146.115 provides a breakdown of the type of 
data and documentation an applicant needs to provide FAA for them to 
adequately demonstrate their ability to provide a service at a 
specific service level.
---------------------------------------------------------------------------

    For services categorized as Service Level 1, i.e., services to 
support part 108 operations, the applicant would be required to provide 
FAA the following three declarations: first, a declaration describing 
the service's intended use; second, a declaration stating that the 
applicant has records documenting all representations to service users 
regarding the capabilities, quality-of-service, limitations, and 
responsibilities of the service provider and service user related to 
the service; and third, a declaration that the applicant has records 
documenting the service's technical specifications, including its 
system architecture and functionality. By making these declarations, 
the applicant is affirming their understanding of part 146 requirements 
and is attesting their continued obligation to comply with FAA 
requirements for providing these services, as declared.
    For services categorized as Service Level 2, i.e., services to 
support part 108 operations requiring regulatory relief, the applicant 
would be required to supplement their declarations with the provision 
of a summary or description of the service they seek to deploy under 
proposed part 146. This would include a description of the service and 
its intended use; all representations to service users regarding the 
capabilities, quality-of-service, limitations, and responsibilities of 
the service provider and service user related to the authorized 
service; and technical specifications of the service describing the 
service's system architecture and functionality. By providing these 
descriptions, the applicant is demonstrating to FAA their understanding 
of how the service they seek to provide would support an aircraft 
operation. They would also describe what the service user's roles and 
responsibilities would be for continuing to use the service.
    For services categorized as Service Level 3, i.e., services to 
support aircraft operations beyond the scope of part 108, the applicant 
would be required to supplement their declarations of compliance with 
the provision of evidentiary data and documentation to FAA 
demonstrating their capability to provide the service. The submission 
of data or documentation includes providing FAA with a copy of service 
provider's documentation describing the service and its intended use; 
copy of the service provider's agreement containing all representations 
of the service to the users regarding the service's capabilities, 
quality-of-service, limitations, and responsibilities of the service 
provider and the service user as it relates to the authorized service; 
and a copy of the service provider's technical specifications of the 
service's system architecture and functionality. These submissions 
would include copies of the applicant's testing and evidentiary data of 
the service's performance, in addition to providing evidence of the 
applicant's capability to provide that Level 3 service. Because 
services categorized as Service Level 3 may support aircraft operations 
with a higher residual risk than part 108 operations, FAA would require 
service providers supporting such operations to prove their capability 
to support such operations. FAA would review the evidentiary data and 
documentation of these services to verify that the results of those 
services are capable of supporting complex BVLOS operations that are 
beyond the scope of part 108.
iii. Demonstrating the Automated Data Service Meets Subpart E of 
Proposed Part 146
    To demonstrate that the automated data service meets FAA proposed 
requirements in subpart E, applicants would be required to demonstrate 
that their automated service meets the automated data exchange 
requirements in proposed Sec.  146.400, as well as the software update 
requirement in proposed Sec.  146.405. To do so, FAA would require 
applicants to submit certain data and documentation to FAA for review. 
Similar to the discussion in section XIII.G.2.ii of this preamble, the 
type of data and documentation would depend on the service level of the 
automated data service the applicant seeks to deploy. This in turn 
would

[[Page 38333]]

prompt applicants to submit documentation commensurate to the 
complexity of the aircraft operation the service would support. The 
type of documentation each applicant would be required to provide is as 
follows.
    For services categorized as Service Level 1, i.e., services to 
support part 108 operations, the applicant would be required to provide 
FAA declarations, ensuring FAA that the applicant's automated data 
services meet the automated data exchange requirements proposed in 
Sec.  146.400. Those include declarations attesting that the automated 
data service is interoperable, employs safeguards, contains an 
authentication method, and uses a non-repudiation method. These 
requirements are described in more detail in the sections that follow. 
With regards to software updates, the applicant would be required to 
submit declarations affirming that they have methodologies to verify 
that their software updates would perform in accordance with Sec.  
146.405.
    For services categorized as Service Level 2, i.e., services to 
support part 108 operations requiring regulatory relief, the applicant 
would be required to supplement their declarations of compliance with 
submissions of summaries or descriptions of how the applicant's 
automated data service meets the automated data exchange requirements 
proposed in Sec.  146.400. This would entail the submission of 
documentation to FAA describing how the automated data service is 
interoperable, employs safeguards, contains an authentication method, 
and uses a non-repudiation method. Similarly, to demonstrate their 
ability to comply with Sec.  146.405, the applicant would be required 
to submit a summary describing the applicant's software updates and 
testing methodology, assuring FAA that they are capable of releasing 
software updates that would not adversely affect a person's ability to 
operate safely in the airspace.
    Lastly, for services categorized as Service Level 3, i.e., services 
to support aircraft operations beyond the scope of part 108, the 
applicant would be required to supplement their declarations of 
compliance by providing evidentiary data and documentation 
demonstrating that the automated data service meets the proposed 
automated data exchange requirements of subpart E. This includes 
providing FAA with copies of the automated data service's test results, 
assuring that the automated data service has been proven to be 
interoperable, employs safeguards, contains an authentication method, 
and uses a non-repudiation method. Similarly, FAA would require the 
applicant to submit data and documentation demonstrating that their 
software updates and testing methodology can be released without 
adversely affecting aircraft operations that would rely on their 
service.
iv. Demonstrating the Automated Data Service Authorization Supports 
Operator Compliance With FAA Regulations
    To scope the type of automated data service that may be provided 
under proposed part 146, FAA would require applicants to demonstrate to 
FAA how the automated data service they seek to deploy would support 
aircraft operator compliance with FAA regulations. As stated earlier in 
this preamble, not every automated data service provider would need a 
part 146 certificate. FAA would issue certificates for only those 
automated data services that operators can use to meet a regulatory 
requirement.
    For example, under proposed part 108, operators who want to conduct 
UAS BVLOS operations in certain controlled airspace would be required 
to have capabilities in place for strategic deconfliction and 
conformance monitoring as proposed in Sec.  108.180.\187\ Both 
strategic deconfliction and conformance monitoring are automated data 
services that may be provided under proposed part 146. In contrast, an 
entity providing automated data services to monitor the temperature of 
perishable cargo such as food deliveries or blood samples would not be 
subject to part 146 requirements. This is because though important to 
the operator, monitoring this is not an aviation safety or efficiency 
concern regulated by this Chapter.
---------------------------------------------------------------------------

    \187\ See section VI.G of this preamble.
---------------------------------------------------------------------------

v. Demonstrating the Automated Data Service Meets an Industry Consensus 
Standard
    Further, as stated in proposed Sec.  146.205(a)(5), basing an 
automated data service on an industry consensus standard would 
facilitate FAA's effort of ensuring that an automated data service 
would support an aircraft operation--by either promoting its safety or 
efficiency. This is due to the fact that standard setting organizations 
are comprised of various stakeholders including aircraft operators, 
manufacturers, and automated data service providers. By sheer 
participation of these diverse audiences and the representation of 
their viewpoints, FAA anticipates that it would promote innovative 
development of automated data services that reflect an operational 
need.\188\ FAA's approach to enabling BVLOS operations leverages 
stakeholder engagement to help provide solutions to the challenges of 
safely and efficiently integrating UAS into the NAS. As a key part of 
this approach, service providers would have to show that any new 
service they seek to introduce into the NAS is based on an industry 
consensus standard or standards. FAA proposes this approach to find the 
right balance between encouraging innovation and industry-led 
solutions, while at the same time ensuring that the NAS does not become 
a test bed for unproven technology. Safety remains FAA's top priority; 
as a result, FAA will not approve experimental or unproven technologies 
for unmitigated or routine use in the NAS. FAA must be reasonably 
confident that any service that will be introduced into the NAS has 
been independently vetted and tested by industry stakeholders to help 
ensure that the technology is mature and interoperable with other UTM 
technologies. FAA believes that requiring services to meet an industry 
consensus standard or standards strikes the appropriate balance between 
innovation and safety concerns.\189\
---------------------------------------------------------------------------

    \188\ Consensus standards bodies consist of potential automated 
data service providers as well as users of those services, which 
include aircraft operators, manufacturers, etc. Within this context, 
service providers and service users would work together with FAA, 
communicating industry needs for automated data services that would 
promote the expansion of complex operations, while maintain the 
safety and efficiency of operations in the NAS.
    \189\ This approach is in line Congress' direction in the FAA 
Reauthorization Act of 2024, Pub. L. 118-63, section 932. Per that 
section, ``the Administrator shall ensure that, to the maximum 
extent practicable, industry consensus standards, such as ASTM 
International Standard F3548-21, titled `UAS Traffic Management 
(UTM) UAS Service Supplier (USS) Interoperability', are included as 
an acceptable means of compliance for third-party services.''
---------------------------------------------------------------------------

3. Evaluation of Request (Sec.  146.210)
    Proposed Sec.  146.210 describes the process FAA would use to 
approve or deny a service authorization request. Proposed paragraph (a) 
states that FAA would evaluate the information, materials, or any 
supporting documentation submitted by the applicant seeking 
authorization for deploying a specific automated data service. FAA 
would review the applicant's submission to help ensure that they meet 
the authorization requirements in proposed Sec.  146.205, which are 
discussed in the preceding section. In addition, FAA may request 
supplemental information during the application process to support its 
evaluation process.

[[Page 38334]]

    Proposed paragraph (b) would authorize FAA to issue an 
authorization if the applicant meets the requirements in proposed Sec.  
146.205. However, that authorization could come with conditions. 
Proposed Sec.  146.210(b) would also authorize FAA to place limits or 
conditions on the authorization to the extent necessary in the interest 
of safety. FAA anticipates that there will be unknown variables 
associated with the novel services that could be deployed by part 146 
certificated automated data service providers. The authority to place 
tailored limits or conditions on service authorizations would provide 
FAA more flexibility to approve services, so long as appropriate 
mitigations are in place. This serves to both enable innovation and 
simultaneously protect the safety and efficiency of the NAS.
    Proposed paragraph (c) would provide for FAA to deny a request for 
authorization if one of several conditions is not met. These include if 
the applicant does not hold a certificate (or is not simultaneously 
applying for a valid certificate per proposed 146.115(d)), or the 
applicant does not meet all of the requirements of proposed Sec.  
146.205.
    Proposed paragraph (d) would prohibit the transfer of an 
authorization from one service provider to another. This provision 
would ensure that a service continues to operate in accordance with its 
minimum performance requirements, as the applicant would establish, per 
Sec.  146.205(b). Per that requirement, the applicant for service 
authorization is responsible for establishing the minimum requirements 
of services they seek to deploy under part 146--so long as the services 
meet certain baseline requirements proposed by FAA. Therefore, through 
this provision, FAA would maintain the integrity of the automated data 
service's capability and functionality, as established. In addition, 
FAA would prohibit transfers of authorized automated data services in 
the event the automated data service provider sells or transfers its 
assets to another entity. In such cases, the new person would be 
required to apply for a part 146 certificate and subsequent service 
authorization to receive an FAA approval to operate under part 146. 
This allows FAA to verify that the person with an FAA-issued service 
authorization meets part 146 requirements. Lastly, by doing so, FAA 
would prevent the creation of loopholes by prohibiting persons from 
circumventing FAA application and evaluation processes as proposed 
under part 146.

H. Subpart D--Certificated Service Providers

    Proposed subpart D contains requirements for certificated service 
providers to comply with once they have obtained a part 146 
certificate. As stated earlier in the preamble, to operate under part 
146, automated data service providers would be required to obtain a 
certificate at the organizational level in accordance with subpart B, 
and then obtain authorizations for the individual services it provides 
in accordance with subpart C. To certificate the automated data service 
provider at the organizational level, they must demonstrate to FAA that 
they are capable of meeting the requirements of this subpart D of part 
146. These subpart D requirements, which relate to cybersecurity, 
quality management systems, training, reportable occurrences, and data 
retention, are described in the sections that follow. Further, once 
certificated, the automated data service provider has an ongoing 
obligation to continue compliance with these requirements in order to 
maintain their part 146 certification.
1. Minimum Requirements (Sec.  146.300)
    Proposed Sec.  146.300 would establish the requirements applicable 
to certificated service providers providing services regulated under 
part 146. A certificated service provider would be required to remain 
in compliance with these requirements in order to maintain their 
certificate.
    Unless otherwise authorized by the Administrator, proposed 
paragraph (a) would require the certificated service provider to remain 
in compliance with the terms of their certificate. Similarly, proposed 
paragraph (b) would require the certificated service provider to comply 
with the terms of an FAA-issued service authorization. These provisions 
unequivocally establish the certificated service provider's legal 
obligation to comply with the terms of their certificate and with 
service authorizations on an ongoing basis. In addition, these 
provisions provide a regulatory basis for FAA to bring an enforcement 
action against the certificated service provider for failure to comply 
with the terms of either the certificate, the service authorization, or 
both. FAA does not foresee situations where the certificated service 
provider is unable to comply with the terms of their part 146 
certificate or service authorization. Nonetheless, FAA understands that 
circumstances may occur when the automated data service provider may 
request regulatory relief from those requirements. For this reason, FAA 
proposes to allow certificated service providers to deviate from 
complying with the terms of their certificate or authorization, if 
authorized by the Administrator.
    Proposed paragraph (c) would require a certificated service 
provider to maintain their facilities, equipment, software, and data 
necessary to comply with the terms of the certificate and service 
authorizations issued under proposed part 146. Certificate requirements 
would include cyber and data security requirements per proposed Sec.  
146.305; quality management system requirements per proposed Sec.  
146.310; change management requirements per proposed Sec.  146.315; 
training requirements per proposed Sec.  146.320; reporting 
requirements per proposed Sec.  146.325; record retention requirements 
per proposed Sec.  146.330; automated service data exchange 
requirements per proposed Sec.  146.400; and software update 
requirements per proposed Sec.  146.405. Both the certificate and 
service authorizations requirements are discussed in the sections that 
follow.
    FAA anticipates that many, if not all, certificated service 
providers will rely on third-party vendors to support their operations 
and, in some cases, service offerings. Proposed paragraph (d)(1) 
explains that third-party services that are not specific to an aviation 
safety function would not require FAA approval. For example, many 
companies outsource their human resources and personnel recruiting 
services to external parties. FAA does not expect these external 
parties, or third-party vendors, to be held responsible for compliance 
with proposed part 146 if their job function is not linked to any 
services issued under proposed part 146.
    In contrast, proposed paragraph (d)(2) would require the third-
party vendor to hold a service provider certificate and obtain a 
service authorization if the vendor's service is specific to an 
aviation safety function. For example, consider the scenario under 
which a certificated service provider deems it necessary to outsource 
some of their authorized services software maintenance responsibilities 
to a third-party. This third-party could be providing a crucial 
function in conducting the authorized service software updates, which 
FAA would otherwise regulate under proposed Sec.  146.405 (described in 
subsequent sections). To prevent creating loopholes or regulatory gaps 
under which someone could outsource safety-critical responsibilities to 
someone over which FAA does not exercise oversight, FAA would require 
those vendors to also

[[Page 38335]]

comply with the certificate and service authorization requirements 
issued under proposed part 146. In this way, FAA would ensure that 
essential services affecting aviation safety remain subject to proposed 
part 146. Proposed paragraph (d)(2) would help ensure that only those 
entities who have demonstrated their capability to FAA under this 
proposed part can introduce services--with the risks and mitigations 
associated with them--into the NAS.
    Proposed paragraph (e) would require that a certificated service 
provider under this part to provide their automated data service to 
users in a reasonable and non-discriminatory manner, as applicable. FAA 
emphasizes that automated data service providers do not have the 
authority to provide operators with access to the NAS, as that 
authority resides solely within FAA. However, certain services--such as 
strategic deconfliction--have the capability to coordinate its user's 
operational intent with others in the network, and therefore may 
prevent other operators from operating in that space for a specific 
time. This may result in a certificated service provider's 
anticompetitive treatment of the airspace. Under this provision, FAA 
highlights that a certificated service provider must abstain from 
providing its users with preferential treatment, thereby providing 
reasonable and non-discriminatory access to the airspace.\190\
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    \190\ As the regulatory entity responsible for the efficient use 
of airspace under 49 U.S.C. 40103(b), requiring impartiality 
facilitates FAA efforts in ensuring optimized use of the NAS. 
Additionally, FAA recognizes the need to establish a priority of 
operations schema, which would guide service providers as well as 
operators in identifying priorities of operations and provide 
guidance to service providers on resolving conflicts when they exist 
among operators of the same priority level. FAA's priority schema, 
for applicable automated data services, is addressed in AC 146-1, 
which is available in the public docket for comment.
---------------------------------------------------------------------------

    Proposed paragraph (f) would require certificated service providers 
to be authorized to conduct business in the U.S. and otherwise be in 
compliance with applicable law, including but not limited to those 
relating to data privacy and security. The purpose of this proposed 
provision is to make clear that the certificates and authorizations 
contemplated under proposed part 146 in no way override or supersede 
other applicable legal requirements. FAA does not intend to affect any 
legal obligation a service provider must abide by to operate in the 
U.S. Under this proposed requirement, FAA would require any 
certificated service provider to uphold their legal obligation to 
remain in compliance with any applicable U.S. government laws and 
regulations, not just those within FAA's purview. Those legal 
obligations could include, but are not limited to, any laws or 
regulations related to data privacy, security, use of spectrum, and 
restrictions on import or export of technology.
2. Cybersecurity (Sec.  146.305)
    Proposed Sec.  146.305 would require certificated service providers 
to take certain actions to maintain their cybersecurity. FAA recognizes 
that malicious attempts to disrupt the automated data service systems 
regulated under proposed part 146 have the potential to impact the 
safety and efficiency of the NAS. Bad actors may wish to disrupt 
services with the intent of extorting a ransom, or simply to wreak 
havoc and cause damage. Personal or proprietary information may be 
sought for financial gain of the attacker. To prevent or mitigate the 
occurrences of such events, it is in the interest of both FAA and all 
involved entities to help ensure that appropriate cyber and data 
securities are in place for all connected systems. Preventing and 
mitigating negative outcomes from a malicious actor infiltrating 
systems protects the safety and efficiency of the NAS by ensuring the 
integrity and reliability of the information exchanged between service 
providers and, ultimately, their users. As such, FAA proposes the 
following requirements in Sec.  146.305 in order to mitigate risk to 
the NAS associated with a service provider's vulnerability to potential 
cyber or data security threats.\191\
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    \191\ As a common industry practice, FAA would recognize ISO 
27001:2022 as an acceptable means of compliance with proposed Sec.  
146.305. An applicant may declare, describe, or present its 
certification with this standard to show that it meets those 
regulatory requirements--depending on the part 146 certification's 
service level.
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    Proposed paragraph (a) would require certificated service providers 
to develop and implement cybersecurity policies and processes to 
protect networks, devices, and data from unauthorized access and to 
help ensure integrity, accuracy, and reliability of the services 
provided to the customer or service user. By proposing this 
cybersecurity policy requirement, FAA would facilitate protection and 
mitigation against the aforementioned security threats. This would 
include, but not be limited to, cyber threats that could adversely 
affect the authenticity or integrity of data that could affect the 
safety and efficiency of the NAS.
    More specifically, under proposed paragraph (b), FAA would require 
each certificated service provider under proposed part 146 to develop 
the following cybersecurity policies for the protection of data, 
including processes for:
    (1) protecting software, hardware, and network computing 
infrastructure necessary to protect the authorized service from 
unauthorized access;
    (2) ensuring the certificated service provider's employee access 
privileges are limited to those necessary to fulfill normal job duties;
    (3) preparing for, responding to, and mitigating the impact of 
cyber attacks;
    (4) collecting and analyzing data to measure the effectiveness of 
the cybersecurity policy and processes; and
    (5) revising the cybersecurity policy.
    These proposed requirements are based on the Cybersecurity and 
Infrastructure Security Agency's ``Secure by Design'' best practices. 
FAA encourages service providers to engage in best practices for cyber 
and data security; however, FAA determined that it was in the interest 
of public and aviation safety, to propose these particular elements as 
requirements. By proposing these requirements as performance-based 
requirements, FAA believes it would encourage the continuous 
improvement of the automated data service provider's cybersecurity 
policy. FAA does not believe it would be effective to prescribe 
cybersecurity requirements by rule because service providers must be 
able to rapidly adjust cybersecurity measures to keep pace with the 
pace at which new cybersecurity threats are introduced.\192\ FAA 
anticipates that service providers may be able to demonstrate 
compliance with this provision by relying on industry consensus 
standards. For example, FAA would consider ISO 27001 to be one way, but 
not the only way, to demonstrate compliance with proposed Sec.  
146.305.
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    \192\ Available at www.cisa.gov/securebydesign.
---------------------------------------------------------------------------

3. Quality Management System (Sec.  146.310)
    Proposed Sec.  146.310 would require certificated service providers 
to have a quality management system in place to help ensure that the 
provision of authorized services continue to meet the minimum 
requirements of this proposed part on an ongoing basis. The safety and 
efficiency of the NAS requires NAS participants to remain in compliance 
with FAA requirements as well as improve their existing processes.
    Quality management systems are regularly used in both the aviation 
and software industries. An abundance of globally recognized standards 
for quality management exists and may serve as resources. The proposed

[[Page 38336]]

requirements for a quality management system are intended to help 
ensure certificated service providers have the processes and monitoring 
systems in place to identify the risk of a service failure 
preemptively--either those provided on their own or subcontracted 
services--and have the means to manage that risk proactively. The 
ultimate objective is for the certificated service providers to engage 
proactively preventing failures that could introduce risk or hazards 
into the NAS. As such, FAA would require certificated service provider 
to have the following quality management system procedures for each 
authorized service. These include procedures for an SMS per 14 CFR part 
5; software update procedures; oversight procedures for third-party 
vendors affecting the authorized services; testing and verification 
procedures; and procedures receiving reports of any service 
difficulties.
    Proposed paragraph (a) would require each certificated service 
provider to develop, implement, and document a quality management 
system acceptable to the Administrator. By doing so, FAA would help 
ensure that the services provided by the certificated service provider, 
or any services provided by third-party vendors that the certificated 
service provider relies on, has an appropriate method in place for 
identifying and addressing risk proactively. FAA views having a quality 
management system as a critical aspect to help ensure that each service 
provider continues to provide services that are safe, reliable, and are 
provided in accordance with the requirements of their FAA-issued 
certificate and service authorizations.
    Proposed paragraph (b) would require the certificated service 
provider's quality management system meet certain provisions of FAA's 
SMS regulations in 14 CFR part 5 to leverage its existing safety 
management processes and principles into the quality management system 
proposed under this part.\193\ FAA determined that applying existing 
SMS requirements--that many aviation industry stakeholders are already 
familiar with--would be a better approach than to create new quality 
management requirements that would duplicate or potentially conflict 
with existing safety management process or protocols.
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    \193\ See 14 CFR part 5.
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    FAA recognizes, however, that not every provision in 14 CFR part 5 
could apply to automated data service providers. This is because many 
of the provisions are tailored to aircraft operators and manufacturers. 
Accordingly, proposed paragraph (b) would not require certificated 
service providers to comply with Sec. Sec.  5.7, 5.9, 5.11, 5.13, 5.15, 
5.27, and 5.71(c). Each of these part 5 provisions are tailored to 
apply to aircraft manufacturers or operators and are provisions with 
which part 146 certificated service providers could not comply. The 
certificated service provider would have to comply with part 5 
requirements, including but not limited to, documenting and 
implementing a plan to address their safety policy, safety risk 
management, safety assurance, and safety promotion.\194\ FAA 
anticipates that it would provide additional guidance to assist 
certificated service providers so they can familiarize themselves with 
the core principles of SMS and implement compliant programs.
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    \194\ For more information about SMS, see www.faa.gov/about/initiatives/sms.
---------------------------------------------------------------------------

    Proposed paragraph (c) would require the quality management system 
to include a process for managing software updates in a way that 
reduces the risk of introducing a hazard to the services authorized 
under proposed part 146. Proposed Sec.  146.405--described in section 
XIII.I.2 of this preamble--identifies specific provisions applicable to 
each particular software update. In contrast, proposed Sec.  146.310(c) 
directs the certificated service provider to have a procedure that 
applies broadly at the organizational level. FAA anticipates that 
certificated service providers will leverage industry best practices or 
consensus standards to design and implement effective procedures to 
comply with this proposed requirement.
    Proposed paragraph (d) would require certificated service providers 
to manage risk when they use third-party vendors for essential service 
capabilities. FAA understands that certificated service providers will 
almost always depend on third-party vendors for essential capabilities 
such as cloud storage, databases, platform management, and other 
software development tools. FAA does not propose to regulate those 
other parties; however, FAA does propose to require the certificated 
service provider to take appropriate steps to help ensure that the 
services they rely on are performing correctly, as these services can 
be essential to the overall functionality of the certificated service 
provider's authorized automated data service. For instance, FAA expects 
a certificated service provider to promptly update any third-party 
vendor's software that they rely on to help ensure the software is 
performing correctly, as outdated software could disrupt the certified 
service provider's ability to maintain uptime for its users. As 
previously expressed, a networked UTM ecosystem requires confidence 
that each participant is delivering reliable services and can uphold 
the high level of safety the public expects from anyone operating in 
the NAS. For the overall UTM ecosystem to operate effectively and 
efficiently, a certificated service provider must not only function 
correctly but also ensure that the third-party vendor services they 
depend on are also functioning correctly.
    Proposed paragraph (d) would require certificated service providers 
to monitor their third-party vendors' services to detect failures or 
other performance issues that could adversely impact the certificated 
service provider's ability to meet the requirements of this part. If 
the certificated service provider's offering to users relies on 
availability or performance of these third parties, the service 
provider would need to be aware of issues with the third-party to be 
able to appropriately inform users of potential system degradation or 
downtime.
    Proposed paragraph (e) would require the certificated service 
provider to develop, implement, and document procedures to test and 
verify that authorized services continue to meet requirements 
applicable to those services. The processes must identify the frequency 
of testing and the criteria the certificated service provider will 
apply to determine whether those services comply with this part. The 
certificated service provider must make all documentation of the 
testing and verification under this section to the Administrator upon 
request. FAA proposes these provisions for two reasons. The first is to 
mandate that the certificated service provider remain vigilant in its 
oversight of its own service. The second is to help ensure that FAA, in 
discharging its own oversight responsibilities, has sufficient 
documentation to determine whether the certificated service provider 
remains in compliance.
    Proposed paragraph (f) would require part 146 certificated service 
providers to create a system so that their users could submit reports 
about service issues that create or could create a risk to operations. 
Specifically, certificated service providers would be required to have 
a means for users to submit reports related to the failure, 
malfunction, or defect in an authorized service when that problem has 
endangered or may endanger the safe operation of an aircraft. FAA 
acknowledges that the certificated service provider cannot monitor 
every aspect of every service it provides at all times. For this 
reason,

[[Page 38337]]

many of the provisions in this proposed rule are designed to create 
systems to identify and bring problems to the certificated service 
provider's attention without FAA's involvement. In essence, these 
processes and procedures are force multipliers that allow the 
certificated service providers to benefit from the vigilance and 
observations of everyone who participates in or benefits from the 
networked services. To this end, FAA wants to help assure users so they 
can relay this information effectively and efficiently so that 
certificated service providers can identify and address anomalies that 
could affect the safe operation of UA.
    To facilitate users reporting service problems, FAA proposes that 
the certificated service provider make the reporting system easily 
available to users and provide users with notice of the system. 
Ultimately, FAA intends for certificated service holders to evaluate 
and address, if appropriate, these reports in accordance with their SMS 
(as required under proposed Sec.  146.310). However, FAA proposes that 
the certificated service provider would be required to produce the 
reports--as well as documentation showing corrective action, if any--in 
response to a request from FAA.
4. Change Management (Sec.  146.315)
    FAA proposes change management requirements to establish processes 
by which a certificated service provider would successfully effectuate 
changes within their organization. This would involve the process of 
establishing a successful feedback loop within an organization to help 
ensure that anyone working for a certificated service provider, whether 
employed directly or under contract, have the same foundational 
knowledge regarding their internal policies as it relates to the 
provision of automated data services under proposed part 146. Change 
management policies are designed to help ensure that a service provider 
has a systematic process for developing and implementing a change to 
their services. For example, consider a certificated service provider 
that changes their software coding platform. If not implemented 
properly within the organization that would include providing proper 
training on this new coding platform, persons involved in maintaining 
an automated data service's code may inadvertently affect the quality 
of that service, thereby affecting the conformity or quality of the 
authorized service as initially approved by FAA. A change management 
policy would include provisions to avoid this outcome by making sure 
that updates, amendments, or other changes a certificated service 
provider applies to their authorized automated data service's software 
or technology does not adversely affect the performance level of the 
service under proposed part 146.
    Accordingly, in proposed Sec.  146.315(a) FAA would require 
certificated service providers to develop, implement, and document a 
change management policy. Further, in proposed paragraph (b), FAA would 
require certificated service providers to notify FAA, in writing, of 
any change to its software or technology that may affect the provider's 
ability to meet the authorized service requirements of part 146. FAA 
recognizes that proposed paragraph (b) and proposed Sec.  146.405 both 
require the certificated service provider to report software updates 
and that, in certain circumstances, this reporting could be redundant. 
Accordingly, proposed Sec.  146.315(b) would not apply when a 
certificated service provider complies with the reporting requirements 
of proposed Sec.  146.405.\195\
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    \195\ For further discussion on this topic, see section XIII.I.2 
of this preamble. In that section, FAA proposes that each 
certificated service provider perform any software updates to their 
authorized service in accordance with proposed Sec.  146.405, which 
includes its own set of requirements for releasing software changes 
and notifying FAA of those changes.
---------------------------------------------------------------------------

    Proposed paragraph (c) would allow FAA to review a certificated 
service provider's change management documentation supporting a change 
to their authorized service. The purpose of proposed paragraph (c) is 
to help ensure that FAA, in discharging its own oversight 
responsibilities, has sufficient documentation to determine whether the 
certificated service provider remains in compliance with the 
requirements of proposed part 146.
5. Training Program (Sec.  146.320)
    Proposed Sec.  146.320(a) would require each certificated service 
provider to establish a training program so that anyone who performs 
functions related to the development or performance of authorized 
services has the knowledge and skills necessary to help ensure the 
certificated service provider's compliance with this part. The proposed 
training requirement would apply both to the certificated service 
provider's direct employees and to anyone else the certificated service 
provider engages to perform these functions. FAA anticipates that many 
certificated service provider's employees will have software industry 
experience; however, they might not have extensive knowledge or 
experience with aviation safety. To help bridge this potential 
knowledge gap and ensure that personnel remain knowledgeable and 
current with relevant aviation safety and efficiency topics, FAA 
proposes that certificated service providers be required to provide 
those individuals with initial and recurrent training.
    To that end, FAA proposes in Sec.  146.320(b) the minimum training 
topics that should be included in a certificated service provider's 
training program. Specifically, FAA proposes that the training would 
need to cover the following topics at a minimum: best practices in 
distributed software development; applicable regulations and Advisory 
Circulars relating to automated data service providers, airspace 
classification, operating requirements, and flight restrictions; 
aviation safety culture concepts; and best practices in the provision 
of automated data services for aviation users.
    Proposed Sec.  146.320(c) would require the training program to 
include recurrent training elements for all applicable workers, 
including individual contractors that impact the authorized service's 
development and performance. Certificated service providers would be 
required to provide this recurrent training at least once per calendar 
year. Recurrent training would help individuals remain proficient in 
their job duties--as it relates to the development and performance of 
authorized automated data services.
6. Reportable Occurrences (Sec.  146.325)
    FAA has an ongoing obligation to maintain the safety and efficiency 
of the NAS. To do so, FAA needs to be aware of occurrences or incidents 
that jeopardize NAS safety and efficiency. FAA proposes to require 
certificated service providers to report certain events, specifically 
those with an adverse effect on their services. This reporting 
requirement is designed to inform FAA of accidents, incidents, and 
precursor safety events and occurrences in the NAS.
    Proposed Sec.  146.325 would require certificated service providers 
to report the following incidents in a form and manner acceptable to 
the Administrator: unscheduled service outages; security breaches that 
result in unauthorized access to the certificated service provider's 
networks, devices, or data, irrespective of whether it affects the 
integrity, accuracy, or reliability of the services provided to the 
service recipient; and any other occurrence that is specifically 
identified as a reportable occurrence in the service provider's 
certificate or service authorization.

[[Page 38338]]

    Reportable occurrences constitute a vital data source that FAA and 
certificated service providers may use for proactive and generative 
safety assurance. This data would be helpful for multiple reasons, 
including but not limited to providing crucial insights into the 
reliability of authorized services that FAA uses to inform its safety 
oversight functions. Automated data service providers are fairly new 
participants in the NAS; this information would provide valuable 
insight into the strengths and weaknesses of the aviation ecosystem as 
FAA continues to work to integrate UAS into the NAS. In addition, FAA 
would use the information to help with the iterative process of 
identifying market trends and the direction UAS innovation is going. 
This information helps FAA prepare today for the operations of 
tomorrow. Lastly, through these reports, FAA would support FAA's safety 
oversight functions.
7. Record Retention (Sec.  146.330)
    Proposed Sec.  146.330 would require certificated service providers 
to maintain certain records so that FAA can hold the provider 
accountable for complying with part 146 requirements. Specifically, 
proposed paragraph (a) would require each certificated service provider 
to retain data and documentation submitted to FAA in support of their 
certificate application for the duration of their certificate, plus an 
additional 24 months. Proposed paragraph (b) would require each 
certificated service provider to retain service specific information 
for the duration of their service authorization, plus an additional 24 
months. This service-specific information would include: (1) 
documentation and data submitted to the Administrator in support of 
their application for an authorized service; (2) records of testing 
required under subpart E of this proposed part; \196\ (3) any service 
difficulty or supplemental reports submitted to the certificated 
service provider about a failure, malfunction, or defect in an 
authorized service.
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    \196\ As proposed in Sec.  146.405(c), FAA would require a 
certificated automated data service provider to test any software 
changes they want to apply to their automated data service prior to 
releasing the updated service to their users. The certificated 
service provider would be required to maintain records of this 
testing--determining that the software changes were successful--in 
accordance with proposed Sec.  146.330(a) for the duration of their 
part 146 certificate, plus an additional 24 months.
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    The proposed time periods for retaining service and certificate 
information would provide FAA with access to crucial information, 
particularly regarding organizational compliance and potential service 
defects. With regards to the retention of documentation supporting the 
certification and service authorization of the service provider, FAA 
anticipates that this information is usually retained by the grantee 
for the duration of their organization or service operation. This 
information would be used to demonstrate proof of the certificated 
service provider's part 146 certificate and service authorization, and 
proof of compliance with FAA requirements in accordance with this 
proposed part. With regards to retaining individual service testing or 
difficulty reports, the proposed records retention requirement would 
enable FAA to access historical records in the event of a service issue 
that jeopardizes aircraft operation in the NAS. FAA understands that 
aviation technology, including software development in support of these 
automated data services, is evolving at an accelerated rate. The 
accelerated technological evolution may cause a failed service update 
or a service difficulty report. By requiring service providers maintain 
such data for an additional 24 months past such incident(s), FAA would 
be able to access historical data and identify potential safety 
concerns or compliance issues that might not be readily apparent from 
more recent documentation. In addition, through these records, any FAA 
investigation, audit, or review could be conducted more efficiently, 
ensuring rapid responses to emerging safety concerns, and maintaining 
the safety of the NAS.
    Proposed paragraph (c) would authorize the Administrator to request 
the certificated service provider to retain additional data, as 
necessary, in the interest of safety, efficiency, and fair access. FAA 
proposes this provision because the regulations of automated data 
service providers is a fairly new regulatory framework. As this 
industry evolves, FAA may find it necessary to require the retention of 
additional records, especially if they would be necessary for safety or 
efficiency of the airspace. FAA seeks comments on what other kinds of 
data would be crucial to require potential service providers to retain, 
and the length of time that would be a sufficient retention period. 
Further, FAA recognizes the value of certain information exchanged 
between service providers to national security Departments and 
Agencies. FAA seeks comments on what information may be shared 
regarding operations and operators to help national security 
Departments and Agencies to determine if they are being conducted 
safely, securely, and responsibly. In addition, FAA seeks comments on 
how this type of information could be shared with those national 
security partners.
    Proposed paragraph (d) would require certificated service providers 
to keep records of the data exchanged with service users or other 
airspace users. This would apply to all data exchanged, including but 
not limited to server logs and notice of service downtime (these 
information requirements are described in the discussion of proposed 
Sec.  146.405(c) in the following sections). This proposed provision is 
consistent with the data retention policies regarding FAA-provided air 
traffic decision support tools, surveillance, and other equipment. Once 
an automated data service has been authorized in accordance with this 
proposed part, FAA would require certificated providers to maintain all 
data exchanged with service users for a minimum of six months from the 
time of the data exchange. This data retention period gives FAA enough 
time to become aware of whether a safety related event occurred and to 
gain access to the necessary data to investigate the incident. FAA 
seeks comment on whether six months is sufficient time for FAA to 
obtain and review records of data exchanged between service providers 
and service users under this part.
    Proposed Sec.  146.330(e) would require a certificated provider to 
retain records of training given to its personnel for a minimum of two 
(2) years following completion of that training. In the event of an 
employer-employee separation, FAA would require the certificated 
service provider to retain record of that employee's training for 12 
months after their separation from employment. The certificated service 
provider would be responsible for ensuring that its personnel have met 
the training requirement under proposed part 146. To hold the 
certificated service provider accountable for complying with these 
requirements, FAA would need to review the training records--be it an 
existing or previous employee for the automated data service provider.
    Lastly, FAA proposes in Sec.  146.330(f) that if FAA requests any 
of the required records retained under this proposed part, the 
certificated service provider would be required to provide those 
requested records to FAA within a reasonable timeframe after receiving 
the request. FAA proposes this requirement so that in the event of an 
FAA investigation or analysis, FAA may obtain the necessary information 
to reassess a certificated service provider's

[[Page 38339]]

certificate or authorization. Further, under this provision, FAA could 
effectively investigate and verify a certificated provider's compliance 
with and conformance to their obligations under this part. In the event 
of nonconformance based on an FAA inspection of the certificated 
service provider's records, FAA could initiate the appropriate 
suspension or revocation actions. FAA does not define a specific time 
period in which to produce the records. What constitutes a reasonable 
time would depend on the nature of the documentation, how it is kept, 
and the volume of data stored. Nonetheless, FAA invites comments on 
whether to require the production of records within a specific 
timeframe after receiving a request, and if so, what would be 
considered a reasonable timeframe to produce the required records.

I. Subpart E--Authorized Service Requirements

    Proposed part 146 would create a regulatory framework to enable 
automated data service providers to participate in a federated, non-
centralized network. One defining characteristic is for data shared in 
this network to meet a minimum set of requirements so that the 
information exchanged is accessible among data service providers or 
individual users that rely on that data. And in certain cases, the 
providers rely on each other in the network to holistically provide 
accurate and reliable information.\197\
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    \197\ FAA acknowledges that there are automated data service 
providers, such as SDSP, whose services are only meant be shared 
with its users. Such service providers would therefore not need to 
share their data with other automated data service providers to 
comply with proposed part 146. In contrast, automated data service 
providers, such as USS, are expected to exchange information not 
only with the service users, but also with similar automated data 
service providers in the network for the services to function 
optimally. FAA anticipates that information regarding each 
individual service's characteristics and system architecture 
services--e.g., a DAA service provided by an SDSP versus a strategic 
deconfliction service provided by a USS--would be required to be 
provided to FAA under proposed Sec.  146.205 for FAA to determine 
whether to authorize the service under proposed part 146. FAA 
clarifies, however, that all automated data services--be they 
services provided by USS or SDSP--are required to meet the minimum 
data exchange requirements of proposed Sec.  146.400 to comply with 
proposed part 146 requirements.
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    This type of industry-led and managed network has many benefits for 
participants and end users; however, one significant drawback is that 
service providers participate as peers without authority to hold one 
another accountable for providing accurate and reliable information. To 
remedy this problem, proposed subpart E would establish minimum 
requirements applicable to authorized services. This would include 
requirements for how each authorized service would exchange data as 
well as the requirements for updating a data service through software 
updates.
1. Authorized Service Data Exchange Requirements (Sec.  146.400)
    The quality of the network depends on the quality of the data 
exchanged within it. FAA proposes to set minimum requirements for the 
authorized services that facilitate the exchange of that data. The 
purpose of these requirements is to mitigate the risk of corrupted, 
unreliable, or inaccurate data within the network. To that end, 
proposed Sec.  146.400 would require services authorized under this 
part to be interoperable, employ safeguards, use an authentication 
method, and use a non-repudiation method. These requirements are 
described in the paragraphs that follow.\198\
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    \198\ In accordance with the terms in proposed subpart C of part 
146, applicants would submit documentation to support their 
compliance with these requirements. FAA anticipates that applicants 
will choose to rely on industry consensus standards to meet these 
requirements.
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    Proposed paragraph (a), which addresses interoperability, would 
require the certificated service provider to be able to exchange data 
automatically and securely with both their service users or with other 
certificated service providers when necessary for provision of the 
service, irrespective of the user's or other provider's digital 
platform.\199\ By requiring the interoperability of authorized 
services, FAA would facilitate the use of common machine-readable data 
formats and industry-accepted data transfer methods. Further, this 
provision would facilitate the ability for separate systems to share 
crucial information in a compatible manner, reducing friction and 
information loss as data is exchanged between service users or other 
certificated service providers.
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    \199\ FAA recognizes that not all automated data services are 
required to exchange their services with their users as well as 
other automated data service providers. For example, automated data 
service providers of strategic deconfliction services are required 
to share their data with USSs in the network for the service to 
function optimally. In contrast, automated data service providers 
providing DAA services are only required to provide their services 
to the service users or operators. FAA clarifies that this provision 
is intended to explain whether the automated data services fall 
under a USS or SDSP, the service must be provided and accessible to 
all service recipient(s)--be it the end user only or the user as 
well other automated data service providers in the network--for the 
service to function optimally.
---------------------------------------------------------------------------

    Proposed paragraph (b) would require the certificated service 
provider to employ safeguards and other measures to help ensure the 
integrity, accuracy, and reliability of data exchanged with their own 
service users or subscribers that may include other certificated 
providers. This provision would help ensure data services that are 
being provided or exchanged among certificated providers and service 
users would contain true, accurate, and reliable information. 
Safeguarding an authorized automated data service under proposed part 
146 would make it so that the data received by an aircraft operator 
would accurately reflect the information provided by the certificated 
service provider. Similarly, the data transmitted back to the 
certificated service provider would accurately reflect the correct 
operator information. Safeguards that prevent interception, 
modification, and retransmission of this data are critical to ensure 
that false data, modified by an outside force, is not presented as the 
genuine version. Otherwise, operators or service users may rely on 
inaccurate or false data, which could compromise the aircraft 
operation, and therefore the safety or efficiency of the NAS. For 
example, if a UA that strayed from its intended flight path had its 
location data intercepted, modified, and retransmitted such that the UA 
appeared to be following its intended path, the operator may not be 
aware of a flyaway event occurring, which could introduce a collision 
risk.
    Proposed paragraph (c) would require the certificated service 
provider to use an access and authentication method that prevents 
unauthorized access to or interference with data exchanged with service 
users that may include other certificated service providers. This would 
help ensure that the data exchanged under proposed part 146 is 
protected from unauthorized access or interference and would help 
prevent data from being manipulated by a malicious actor. While no data 
security provisions are entirely impervious to bad actors, this 
provision would assure service users or aircraft operators of a level 
of protection from an external entity attempting to maliciously inject 
erroneous data into their system.
    Proposed paragraph (d) would require the certificated service 
provider to use a validation and verification method that provides 
assurance of the integrity and origin of the data exchanged with their 
service users or subscribers. In the software development industry, 
this concept is often referred to as ``non-repudiation'' and is often 
implemented as message signing. While data authentication protects the 
information,

[[Page 38340]]

non-repudiation would assure service users, or aircraft operators, that 
the data exchanged is coming from a trusted source. This would allow 
the service users to trust that a certificated automated data service 
provider provided the data source. Through this provision, one can be 
assured that the data exchanged has reached the intended user. In other 
words, it provides assurance that the data user or the aircraft 
operator is who they say they are, and the source of the data, or the 
service provider, cannot deny they were the one who sent the data. This 
provision facilitates the importance of establishing trust and 
traceability from the service provider and service user.
    Proposed paragraph (e) would require that a certificated service 
provider under this part to provide their automated data service to 
users in a reasonable and non-discriminatory manner, as applicable. FAA 
emphasizes that automated data service providers do not have the 
authority to provide operators with access to the NAS, as that 
authority resides solely within FAA. However, certain services--such as 
strategic deconfliction--have the capability to coordinate their user's 
operational intent with others in the network, therefore may prevent 
other operators from operating in that space for a specific time. This 
may result in certificated service providers' non-equitable treatment 
of the airspace. Under this provision, FAA highlights that a 
certificated service provider must abstain from providing its users 
with preferential treatment, thereby providing reasonable and non-
discriminatory access to the airspace.
2. Software Updates (Sec.  146.405)
    An automated data service provider likely will update or change the 
software that its service runs on many times over the lifetime of the 
service. There could be a number of different reasons for this. A 
service provider could decide to make changes to modernize or improve 
the efficiency or quality of its service. Or, it could decide to offer 
new services or add new features to existing services. In other 
circumstances, the service provider might want to make remedial changes 
to help ensure the security of their systems. For example, proposed 
subpart D includes security requirements that include maintaining cyber 
and data security processes, quality management systems, and change 
management systems so it can identify potential vulnerabilities and 
take remedial action in a timely manner. Usually, remedial action takes 
the form of a software update to prevent the vulnerability from 
interfering with the quality of the service or to prevent someone from 
exploiting those vulnerabilities to the detriment of the users or the 
network itself.
    In addition to identifying vulnerabilities and appropriate 
remediation(s), the service provider must also ensure that the software 
update does not introduce any new vulnerabilities or exacerbate any 
existing problems. Each time a service provider deploys an update to 
correct an error, there is risk that it will not function properly. To 
minimize this risk, which could potentially affect all participants in 
the network, FAA proposes certain requirements related to the 
development, testing, and deployment of software updates.
    Proposed paragraph (a) would require a certificated service 
provider to verify that prior to releasing any software changes to 
their FAA-authorized service, those changes would not adversely affect 
the person using the service. This provision would minimize the risk of 
software updates inadvertently impacting the authorized services' 
users, and therefore affecting their ability to operate safely in the 
U.S. airspace. For purposes of this section, FAA proposes to describe 
``person'' to include customers of the certificated service provider as 
well as other airspace users or services that rely on exchanging data 
with the authorized service.
    Proposed paragraph (b) would require a certificated service 
provider to use a generally accepted industry standard for assigning 
version numbers to any software changes to their authorized automated 
data service. As stated earlier, a certificated service provider may 
perform a software update to their authorized service for a number of 
reasons, including but not limited to, improving the efficiency or 
quality of their authorized service. To track updates, software 
developers assign version numbers to the updated version of the 
software; those updates include performing a patch, minor update, or 
major update.\200\ Currently, there are existing versioning standards 
for software updates. Whenever software changes are made, software 
developers assign version numbers to their software changes according 
to those existing standards. Therefore, rather than establish new 
versioning procedures, FAA intends on leveraging the use of existing 
consensus standards for the maintenance of authorized automated data 
services under proposed part 146.
---------------------------------------------------------------------------

    \200\ See proposed Sec.  146.405(f), discussed later in this 
section of this preamble.
---------------------------------------------------------------------------

    Proposed paragraph (c) would require that a certificated service 
provider conduct testing prior to releasing any software changes. This 
is to verify that the changes do not adversely affect the authorized 
service's ability to meet the requirements of proposed part 146.\201\ 
In addition, all documentation of testing and verification of software 
changes must be readily available to FAA, and made available no later 
than 24 hours after receiving a written request from FAA.\202\ FAA 
anticipates certificated service providers will engage in best business 
practices including documenting all of their product testing--in this 
case, software update testing. FAA's main objective is to help ensure 
the safety of each software change prior to introducing an updated 
service into the NAS. FAA does not intend to impose an administrative 
burden of requiring automated data service providers to provide FAA 
with proof of each test conducted in accordance with this proposed 
part. However, FAA retains its authority to require certificated 
service providers to show proof of their software testing once they 
receive a written request from FAA, in the interest of safety.
---------------------------------------------------------------------------

    \201\ Those requirements include the data exchange requirements 
per proposed Sec.  146.400. In accordance with Sec.  146.400, FAA 
proposes that each authorized service under proposed part 146 
contains the following requirements: interoperability, safeguards, 
authentication, and non-repudiation.
    \202\ As proposed in Sec.  146.330(a)(2), record retention 
requirements, FAA would require certificated service providers to 
retain records of testing required under subpart E of part 146, 
which would include software updates testing, for the duration of 
the service provider's part 146 certificate plus an additional 24 
calendar months.
---------------------------------------------------------------------------

    Lastly, FAA proposes that FAA may request the certificated service 
provider to conduct additional testing or verification to demonstrate 
that their authorized services meet the minimum performance 
requirements of part 146. FAA would do so to verify that the testing 
conducted is sufficient, and the software changes are safe to 
introduce, or re-introduce, into the NAS. With regards to conducting 
additional testing or verification, FAA would require those to be 
conducted as soon as practicable after receiving an FAA written 
request. For the sake of promoting flexible regulatory requirements, 
FAA does not intend to set a specific timeframe for when the 
certificated service provider should conduct their additional testing 
or verification after receiving an FAA request. Instead, FAA 
anticipates that each certificated service provider would conduct their 
additional testing or

[[Page 38341]]

verification as soon as they are able to do so, to provide their 
service users with their latest updates, therefore promoting their own 
business ventures.
    Proposed paragraph (d) would require certificated service providers 
to provide reasonable notice to all service users prior to any software 
change or anticipated service downtime as a result of the software 
update. This notice would include the date, time, and expected downtime 
duration of that service. Proposed paragraph Sec.  146.405(d)(2) would 
require the service provider notify users in advance of a software 
change in order for the user to have adequate time to determine if the 
change to the service affects the user, and if so, make the required 
adjustments due to the change. In addition, as proposed in Sec.  
146.405(d)(3), each notice would provide a description of the software 
change, including: (1) the version identifier; (2) an explanation 
regarding the nature of the change; (3) identification of differences 
in service features, functionality, or user experience; and (4) 
explanation of any actions the user must take to ensure the authorized 
service is performing as intended following the change. This 
information would be crucial for service users to understand the scope 
and impact of the software change and anticipated downtime duration as 
well as whether the changes could affect operations.
    In addition, proposed paragraph (d) would require certificated 
service providers to keep a record of each software update or changes 
under this section for not less than two years from the date the update 
was released. FAA may rely on this information to investigate potential 
non-compliances in the event of any service malfunction; this duration 
would provide FAA with sufficient time to determine whether to take 
enforcement action.
    Rather than prescribe a set requirement for what would be 
considered reasonable notice, each certificated service provider should 
have a thorough understanding of their authorized service, and the 
potential disruption that may take place in the event of a software 
update. Apart from FAA notification requirements explained in the 
following paragraph, in most cases the certificated provider would be 
in the best position to determine what would be considered reasonable 
notice regarding any scheduled downtime. Reasonable notice would allow 
service users to properly evaluate the potential effects of the 
downtime on their operations, as well as make any necessary operational 
adjustments. FAA welcomes comment on whether there is a specific 
timeframe that should be considered reasonable notice.
    Proposed paragraph (e) would establish FAA notification 
requirements for releasing software updates to automated data services 
based on the type of software changes. These types of updates are--
patch, minor update, and major update.\203\ FAA proposes requirements 
for these three types of service software updates commensurate with the 
potential risk the update could present to the safety of the operation 
that relies on that service. This potential risk would also depend on 
the service level of the service that is undergoing a software update. 
As such, proposed paragraph (f) would establish approval requirements 
for releasing software updates. The proposed notification and FAA 
approval processes are each explained in the paragraphs that follow.
---------------------------------------------------------------------------

    \203\ Proposed definitions for path, minor, and major software 
updates are in Sec.  146.5 and are discussed in this preamble in 
section XIII.E.2.
---------------------------------------------------------------------------

    First, patch updates are version changes to a software that address 
bugs or performance improvements internal to the service. Patch updates 
often improve performance, fix bugs, or address security 
vulnerabilities. They do not change the overall functionality or 
features of the service and the version is backward compatible. In 
addition, the application programming interface (API) endpoint remains 
unchanged. An API is a software feature that allows two different 
applications to interface or ``talk to each other.'' The API endpoint 
is the place where the API receives requests to access functionality 
and data. Typically, the endpoint is a web address. In the case of a 
patch update, the web address would not change.
    Ultimately, service users can upgrade or downgrade from the patch 
incrementally without having to make changes to how they use the 
service. Regardless of the service level of the service undergoing the 
patch update, because the software change would not alter the service's 
functionality, API, and compatibility, FAA determined the risk to 
aviation safety to be extremely low. For these reasons, patch updates 
can be released by certificated service providers without the need for 
providing prior notice to FAA, nor receiving an FAA approval for the 
release of such update. As discussed in Sec.  146.405(d)(4) (in the 
preceding paragraphs), FAA proposes to require certificated service 
providers to document and maintain a record of the patch update for two 
years.
    Second, minor updates are version changes to software that add new 
features and generally create a new API endpoint for that version. In 
the case of an API endpoint update, typically the previous API endpoint 
remains fully functional, which means that the user can continue to use 
legacy functionality without doing anything, or they can upgrade and 
take advantage of the new features or functionality. When the user 
upgrades their service, per the software update, they may need to make 
changes to their aircraft or its AE to properly integrate the minor 
update. In either case, the service would typically maintain backward 
compatibility with the aircraft or AE that is relying on the service. 
This is important because, irrespective of whether the user chooses to 
upgrade or not, backward compatibility means they would still be able 
to access legacy functionality of the service.
    Because minor updates may substantively change the features and 
functionality of the service, FAA assesses the safety risk of these 
software changes to be higher than those associated with patch updates. 
This is because the minor update would change the service's API, and 
therefore the service information may not be accessed the same way as 
initially developed. This could lead to a service user's inability to 
access information that may be necessary for the aircraft operation. 
The impact of minor updates on the service's performance would also 
depend on the service level of the service.\204\ Accordingly, FAA 
proposes in Sec.  146.405(e)(1) that certificated service providers 
must notify FAA--via a portal on FAA's website--prior to releasing a 
minor update. Specifically, prior to releasing a minor update, 
certificated service providers would be required to notify FAA at least 
one (1) business day prior to release of a Service Level 1 service, at 
least three (3) business days prior to release of a Service Level 2 
service, and at least five (5) business days prior to release of a 
Service Level 3 service. This provides FAA an opportunity to review 
documents from the certificated service provider to help ensure that 
the change to the service will continue to comply with its 
authorization and will not create a new unsafe condition or hazard for 
aircraft operators using the service.
---------------------------------------------------------------------------

    \204\ The higher the service level, the higher the residual risk 
that may be introduced into the NAS because of the operation that 
relies on that service.
---------------------------------------------------------------------------

    Finally, major updates would be significant revisions or a redesign 
of the software. These changes are not backward compatible and 
fundamentally change what the service does or how it works. Major 
updates to

[[Page 38342]]

a software substantively change the API, which may result in a new API 
endpoint or signature.\205\ FAA believes that these changes could 
create hazards to safe operations and thus the risk is high enough to 
warrant FAA approval. As a result, FAA proposes in Sec.  146.405(f) to 
require certificated service providers to obtain FAA approval prior to 
releasing a major software update to Service Level 2 or Service Level 3 
services.\206\ This is because major updates would significantly change 
the software, and therefore the service's features and functionality, 
all of which could lead to compatibility issues between versions. The 
effects and magnitude of the changes would be unknown until 
tested.\207\
---------------------------------------------------------------------------

    \205\ An API signature is a method used to secure and 
authenticate API communications.
    \206\ Service Level 1 services are considered to pose the lowest 
residual risk to the NAS as they support aircraft operations with 
multiple mitigations in place, rendering changes to these services 
as non-critical to safety of the operation. As such, FAA does not 
consider major updates to service level 1 services to require FAA 
approval prior to release. However, service level 1 service 
providers are required to notify FAA at least five (5) business days 
before releasing any major software updates.
    \207\ AC-146-1, available in the docket associated with this 
rulemaking, as proposed includes guidance to the public regarding 
how to submit documentation to FAA requesting Agency approval prior 
to releasing a major update to a service. This documentation may 
include traceability matrices, and test results to FAA for major 
updates to Service Levels 2 and 3.
---------------------------------------------------------------------------

    In addition, because major updates would constitute such 
significant changes to the software, FAA proposes in Sec.  146.405(g) 
that, unless otherwise authorized by the Administrator, the 
certificated service provider would be required to have procedures in 
place to transition service users from the older software to the 
updated one safely, rather than suddenly discontinuing the superseded 
software versions. In order to transition safely, FAA proposes to 
require the certificated service providers to: (1) maintain the most 
recent previous version of the authorized service with full 
functionality for a minimum of 60 days from the release date; and (2) 
notify service users a minimum of seven (7) calendar days prior to 
removing full functionality of the prior version of the authorized 
service.
    Nonetheless, FAA understands that there may be exceptions to 
discontinuing superseded software versions as proposed in Sec.  
146.405(g), especially with regards to maintaining a preceding version 
of a service if it is no longer in operation. For this reason, FAA 
proposes in Sec.  146.405(h) that the provision of Sec.  146.405(g)(1) 
may not apply if the authorized service is provided by more than one 
certificated provider, and the major software update would need to take 
place in a coordinated, planned, or simultaneous manner to maintain its 
interoperability.
    For example, certain automated data services would need 
interoperability to function optimally. As such, automated data service 
providers that provide a specific service relying on interoperability 
may need to update their software in a coordinated manner; this is to 
guide their service users into using the latest version of the 
automated data service. Through this coordinated effort of enrolling 
their service users into using the latest version of their software, 
the older version of the software would be rendered obsolete--
especially because all parties would be using the latest version. For 
this reason, FAA determined to except automated data service providers 
from maintaining the most recent previous version of the authorized 
service with full functionality for a minimum of 60 days from the 
release date. Nonetheless, a seven (7)calendar day minimum notice from 
Sec.  146.405(g)(2) would be required under the proposal.
    To clarify the proposed provisions for issuing notifications and 
requesting approvals in accordance with this proposed section, FAA 
summarizes the necessary requirements for patch, minor updates, and 
major updates, depending on each service's service level in table 6. 
Similar to the continuum framework of service levels and residual risk, 
FAA developed this framework for notifying and approving software 
updates to be proportional to the impact of software updates on the 
authorized service. The rationale for this differentiation is to set 
the level of FAA review (if any) proportional to the severity of 
hazards that could be introduced by the update to the service. In most 
cases, the certificated service provider need not wait for explicit 
approval from FAA prior to issuing a software update. In many cases, 
certificated service providers would issue software updates iteratively 
to fix bugs, add features, or improve overall functionality (e.g., to 
increase the total number of operators it could support 
simultaneously). FAA also understands that cybersecurity 
vulnerabilities must be addressed quickly and that undue delays could 
be detrimental to users or the network. The required notification 
interval enables FAA to prioritize how it manages changes to services, 
with time to provide limited review as needed. In the event a potential 
problem is identified, and in the event of a major software update to 
Service Level 2 or Service Level 3 services, this notification 
requirement would allow FAA to delay the release of the software update 
while it conducts further review.

                     Table 6--Software Updates Notice, Approval, and Retention Requirements
----------------------------------------------------------------------------------------------------------------
                                           Service level 1          Service level 2          Service level 3
----------------------------------------------------------------------------------------------------------------
Patch:
    FAA Notification?................  No.....................  No.....................  No.
    FAA Approval?....................  No.....................  No.....................  No.
                                      --------------------------------------------------------------------------
    Record Retention.................                             2 years since update
                                      --------------------------------------------------------------------------
Minor:
    FAA Notification?................  at least 1 business day  at least 3 business      at least 5 business
                                        prior to release.        days prior to release.   days prior to release.
    FAA Approval?....................  No.....................  No.....................  No.
                                      --------------------------------------------------------------------------
    Record Retention.................                             2 years since update
                                      --------------------------------------------------------------------------
Major:
    FAA Notification?................  at least 5 business      N/A....................  N/A.
                                        days prior to release.

[[Page 38343]]

 
    FAA Approval?....................  No.....................  Yes....................  Yes.
                                      --------------------------------------------------------------------------
    Record Retention.................                             2 years since update
----------------------------------------------------------------------------------------------------------------

J. Subpart F--Due Process

    FAA proposes subpart F of part 146 to define conditions under which 
FAA may revoke or suspend the issuance of an automated data service 
authorization. Proposed subpart F would also address stipulations for 
reconsideration, including conditions under which an applicant may 
petition FAA to reconsider the denial, suspension, or revocation of an 
authorization issued under part 146. FAA does not intend for this 
subpart to apply to the process of appealing FAA decisions to suspend 
or revoke a part 146 certificate issued in accordance with this part. 
FAA does not intend to create a redundant set of provisions with 
regards to the Agency's appeal process. FAA has an existing set of 
provisions for the process of appealing FAA initiated decisions to 
modify an already issued certificate--including suspending or revoking 
a part 146 certificate--in 14 CFR part 13. As such, the existing 
process of appealing FAA decisions with regards to an FAA initiated 
certificate action in 14 CFR part 13 would also apply to certificates 
issued under part 146. Nonetheless, if FAA issued a decision to deny an 
application for part 146 certification, including a denial to amend a 
returning applicant's certificate's service level, the applicant may 
petition FAA to reconsider such decision under proposed part 146.
1. Revocations and Suspension (Sec.  146.500)
    Each certificate or authorization issued under this part is subject 
to ongoing review by the Administrator. However, while FAA has an 
existing set of provisions in part 13 of 14 CFR governing the process 
of FAA initiated actions with regards to certificates issued under part 
146, this process does not apply to automated data services 
authorization issued under part 146. As such, FAA proposes in Sec.  
146.500(a) that the Administrator may revoke or suspend an 
authorization issued under this part upon a determination that the 
certificated service provider is not in compliance with this part. 
Certificated service providers in non-compliance may impact NAS safety 
and efficiency. As the government authority responsible for maintaining 
the safety and efficiency of the U.S. airspace, FAA has authority to 
oversee compliance with FAA requirements. FAA may exercise this 
authority to require certificated service providers to comply with the 
proposed part 146 certification and service authorization requirements 
in order to maintain their certificate or service authorization.
    As an alternative to revoking a service authorization, FAA proposes 
in Sec.  146.500(c) that the Administrator may suspend an automated 
data service authorization issued under this part without prior notice 
or opportunity to cure if the Administrator determines it is in the 
interest of safety to immediately remove that service from 
participating in the NAS. FAA recognizes that errors may occasionally 
happen and could impact an operator's ability to conduct safe aircraft 
operations. These errors could be a result of a service issue but also 
could be a result of an operator's mistake. Rather than simply revoke 
the certificated service provider's authorization, this provision 
provides FAA with the ability to suspend the service authorization 
while investigating the cause for error. Furthermore, it provides the 
certificated service provider with the opportunity to remediate the 
issue of non-compliance instead of having FAA exercise its revocation 
authority. However, per proposed Sec.  146.500(b), if the certificated 
service provider does not fix the problem of non-compliance, FAA could 
revoke the certificated service provider's part 146 service 
authorization in the interest of safety.
2. Petition to Reconsider (Sec.  146.505)
    FAA endeavors to enable the integration of complex UAS operations 
such as BVLOS operations in the NAS, while ensuring measures are in 
place to integrate those operations safely. FAA wishes to engage NAS 
stakeholders to enable more complex UAS operations in a safe, 
efficient, and equitable manner. FAA believes it can do so by approving 
technologies that enable complex UAS BVLOS operations. Because FAA's 
highest priority is the safety and efficiency of the NAS, FAA also 
intends to promote and enforce compliance with its regulations. 
Balancing fairness with FAA's responsibility to enforce its 
regulations, FAA proposes to offer automated data service providers 
impacted by a revocation, suspension, or denial with the opportunity to 
correct any identified insufficiencies with their service. However, 
FAA's mission is to provide the world's safest, most efficient 
airspace. If an automated data service provider jeopardizes NAS safety 
or efficiency, FAA would exercise its oversight authority to prevent 
them from adversely affecting the safety and efficiency of the NAS.
    To that end, FAA proposes in Sec.  146.505(a) that any applicant or 
service authorization holder may submit a petition to FAA to reconsider 
its decision to deny, suspend, or revoke a part 146 service 
authorization issued under this proposed part. Similarly, an applicant 
may petition FAA to reconsider its decision to deny an application for 
part 146 certification, including applications to amend the 
certificate's service level. FAA proposes that such petitions must be 
submitted by the applicant or certificated service provider in a form 
and manner acceptable to the Administrator. Applications must be 
submitted to FAA within 60 calendar days of FAA-issued denial of a 
certificate, or FAA-issued denial, revocation, or suspension of a 
service authorization issued in accordance with this part.
    FAA proposes in Sec.  146.505(b) that the applicant or previously 
certificated service provider's petition for reconsideration must 
demonstrate that FAA issued the denial, revocation, or suspension in 
error. Further, the petition to FAA must include one of the following 
elements: a material fact exists that was not previously presented to 
the Administrator; the Administrator relied on a material error of fact 
in issuing the decision; or the Administrator did not correctly 
interpret a law, regulation, or precedent. To issue its final decision, 
FAA will consider the information in the submitted petition to 
determine whether to withdraw or keep its decision issued in accordance 
with proposed part 146.

K. Proposed Advisory Circulars

    FAA proposes to publish the AC 146-1, Automated Data Services, to 
provide guidance to automated data service providers seeking 
certification and

[[Page 38344]]

authorization to provide a service in accordance with proposed part 
146. AC 146-1 would provide guidance for automated data service 
providers, including guidance for applying for part 146 certification, 
and the use of certain standards as a means to comply with proposed 
part 146 requirements.\208\ AC 146-1 would also provide guidance for 
demonstrating capability to be granted FAA authority to provide an 
authorized automated data service in accordance with proposed part 146. 
Lastly, AC 146-1 would provide guidance on the materials to provide to 
FAA in relation to automated data services data exchange requirements 
and software update semantics.
---------------------------------------------------------------------------

    \208\ See, e.g., ISO 23629-12.
---------------------------------------------------------------------------

    As part of this guidance, FAA would reference the use of certain 
automated data services that may be used by operators to comply with 
FAA operating requirements. These services would be used to mitigate 
any residual risks associated with an ongoing operational need. These 
automated data services may be based on published industry consensus 
standards as a whole or may represent certain aspects of a standard (or 
standards). To guide the public through the process of leveraging the 
use of these services to comply with FAA requirements, FAA would issue 
appendices to AC 146-1. Each appendix would comprise a service provider 
standard order (SPSO), which would represent one way but not the only 
way to demonstrate compliance with the performance-based regulations 
under proposed part 146. A list of appendices, comprising each SPSO 
that FAA anticipates publishing in association with this rule follows:
    1. Appendix A, SPSO-1a: Strategic Deconfliction (Strategic Conflict 
Detection & Resolution, and Aggregate Conformance Monitoring).
    2. Appendix B, SPSO-2a: Conformance monitoring FAA seeks comments 
on whether additional guidance or procedures are needed to expand 
operations using automated data service providers.

XIV. Regulatory Notices and Analyses

A. Regulatory Impact Analysis

    Executive Orders 12866 (``Regulatory Planning and Review'') 
requires agencies to regulate in the ``most cost-effective manner,'' 
and to make a ``reasoned determination that the benefits of the 
intended regulation justify its costs.'' The Office of Management and 
Budget has determined that this proposed rulemaking is a significant 
regulatory action as defined in section (3)(f)(4) of Executive Order 
(E.O.) 12866. Accordingly, the following sections provide analysis of 
the regulatory impact of the proposal, including the applicable 
baseline, potential costs and benefits, and uncertainties.
1. Baseline for the Analysis
    The baseline for the analysis includes the existing regulatory 
framework and practices for conducting BVLOS operations, the affected 
entities and operations under this framework, and existing risks of 
these activities.
i. Regulatory Framework
    As described in section III, FAA currently authorizes BVLOS and 
larger and more complex operations through waivers and exemptions. Part 
107 provides safety regulations for small UAS weighing less than 55 
pounds. Waiver authority in part 107 accommodates new technologies and 
unique circumstances if the Administrator finds that proposed operation 
can be conducted safely in terms of the waiver. The waiver application 
generally must outline how the operator intends to conduct the 
operation safely, including risk mitigation strategies, and FAA 
includes terms and conditions in the waiver issued.\209\
---------------------------------------------------------------------------

    \209\ Part 107 waivers issued, and the sections waived, are 
available at www.faa.gov/uas/commercial_operators/part_107_waivers/waivers_issued.
---------------------------------------------------------------------------

    Part 107 only applies to UAS that weigh less than 55 pounds at 
takeoff. Not only is there a maximum weight, but there is also a 
limitation on what rules can be waived.\210\ To fly a UA that exceeds 
the maximum weight limit of part 107 or obtain relief from the 
nonwaivable provisions of part 107, the UA operator must petition for 
an exemption. The exemption petition must describe how the operator 
will safely conduct the operation, and FAA will include conditions and 
limitations in the exemption issued. In addition, an exemption requires 
justification on how the petition is in the public interest and when 
precedent setting, petitions for exemptions are made available for 
public notice and comment in the Federal Register. FAA publishes the 
petitions for exemptions and the decision document in response to those 
requests to the public docket.\211\
---------------------------------------------------------------------------

    \210\ Types operations that are waivable under part 107 include 
operations from a moving vehicle (Sec.  107.25), daylight (Sec.  
107.29), VLOS (Sec.  107.31), with visual observers (Sec.  107.33), 
multiple small UAS (Sec.  107.35), yielding right of way (Sec.  
107.37(a)), over people (Sec.  107.39) and in other airspaces (Sec.  
107.41) and removing certain other limitations (Sec.  107.51).
    \211\ These dockets are available at www.regulations.gov.
---------------------------------------------------------------------------

ii. Affected Entities and Operations
    The proposed rule would affect certain UA manufacturers and 
operators, and entities seeking authorization to provide automated data 
services. Manufacturers of UA used in BVLOS operations would have new 
requirements. UA operators would be able to apply to conduct BVLOS 
operations for the following activities: package delivery, agriculture, 
aerial surveying, civic interest,\212\ UA operations training, 
demonstration, recreation, and flight testing. Companies that provide 
data, processing capacity, or other software support for UAS could 
become an automated data service provider.
---------------------------------------------------------------------------

    \212\ Includes forest and wildlife conservation, including 
wildfire recovery, wildlife conservation, and tracking climate 
change, and operations in support of public safety, including fire, 
accident, and disaster response.
---------------------------------------------------------------------------

    Previously granted waivers and exemptions provide insight on the 
potentially affected entities.\213\ There are 9 operators with 
exemptions that currently authorize BVLOS operations for UA over 55 
pounds, including in package delivery operations and operations to 
support infrastructure inspection.\214\ There are also approximately 
230 additional (unique) operators that hold waivers indicative of BVLOS 
operations with UA up to 55 pounds.\215\ These entities span a wide 
range of industry categories, such as agriculture, mapping, 
photography, and conservation. There are also about 30 U.S.-based 
manufacturers of the UA used under these waivers and exemptions.\216\ 
Current LOAs provide information on entities that may provide automated 
data services. Table 7 summarizes the potentially affected entities. 
Table 8 shows the number of part 119 UAS package delivery

[[Page 38345]]

operators operating under part 135 through exemptions. Table 9 shows 
BVLOS operations tracked within FAA's partnership programs.
---------------------------------------------------------------------------

    \213\ FAA has also denied requests for waivers and exemptions. 
The extent to which these denials represent entities that would 
continue to pursue acceptable BVLOS terms and conditions is unclear.
    \214\ The docket numbers are: FAA-2023-1827 and FAA-2022-0124; 
FAA-2022-0921; FAA-2019-0628; FAA-2020-0499; FAA-2019-0573; FAA-
2018-0835; FAA-2022-0268; FAA-2020-0620; FAA-2021-0746.
    \215\ For this analysis, the waived sections include: Sec. Sec.  
107.31, 107.33, 107.35, and 91.113. Based on waivers as of January 
1, 2024.
    \216\ Based on waivers of Sec.  107.31 from May 2023 to May 2024 
and the current exemptions for BVLOS.

               Table 7--Potentially Affected Entities \1\
------------------------------------------------------------------------
                    Category                              Count
------------------------------------------------------------------------
Operators \1\..................................                      239
Manufacturers \1\..............................                       30
Automated data service providers...............                    \2\ 2
------------------------------------------------------------------------
\1\ Based on waivers and exemptions for BVLOS operations as of May 2024.
\2\ As described in section VII.I.2, FAA has issued LOAs associated with
  an operational waiver or exemption for strategic deconfliction service
  provision to two entities. Automated data services will be required
  for certain BVLOS operations.


                 Table 8--UAS Package Delivery Operators
------------------------------------------------------------------------
          Operator                    Location of operations \1\
------------------------------------------------------------------------
Drone Express...............  NC.
DroneUp, LLC................  Dallas/Fort Worth, TX.
Causey Aviation Unmanned....  NC.
Zipline.....................  Salt Lake City, UT, with expansion plans
                               in progress for Dallas/Fort Worth, TX and
                               Seattle, WA.
Amazon......................  Phoenix, AZ and Tolleson, CA.
UPS Flight Forward, Inc.....  Winston-Salem, NC.
Wing Aviation, LLC..........  Primarily in TX and VA, with expansion
                               plans.
------------------------------------------------------------------------
Source: FAA (see: https://www.faa.gov/uas/advanced_operations/package_delivery_drone).
\1\ Current operations are limited by the need for case-by-case
  environmental assessments which take about one year. By the final
  rule, FAA anticipates having a nationwide assessment which will expand
  locations.


                    Table 9--BVLOS Flights, 2024 \1\
------------------------------------------------------------------------
             Category                   Count \2\            Hours
------------------------------------------------------------------------
Environmental survey..............                  6                  3
Infrastructure inspection (linear)                583                192
Infrastructure inspection (non-                   197                 44
 linear)..........................
Package delivery..................             80,955              9,309
Public safety.....................              4,337                526
Research..........................                103                 18
                                   -------------------------------------
    Total.........................             86,181             10,092
------------------------------------------------------------------------
Source: FAA data (includes BEYOND and Partnership for Safety Program,
  exemptions, and waivers).
\1\ Operational BVLOS flights (with and without observers) and flights
  using multiple UA.
\2\ Count of single leg (one-way) flights.

    Additional examples of BVLOS operations in these categories that 
have developed under the current regulatory structure include the 
following: \217\
---------------------------------------------------------------------------

    \217\ Industry materials provided to the Office of Information 
and Regulatory Affairs, Office of Management and Budget, available 
at: www.reginfo.gov.
---------------------------------------------------------------------------

     Routine and supplemental inspections. For example, BNSF 
Railway began inspecting 150-mile segments of railway track in New 
Mexico by late 2015.
     Three state Departments of Transportation (KS, ND, NC) 
were in FAA's Integrated Partnership Program. OH DOT, with partners, is 
developing SkyVision, a ground-based detect and avoid system.
     After Hurricane Milton in FL, Florida Power and Light used 
UAS to assess damage. Georgia Power implemented a pilot program 
utilizing drones for comprehensive aerial inspections.
     Public safety agencies employ UAS for search and rescue 
operations, disaster response and recovery, law enforcement, 
firefighting, and traffic accident and crime scene investigation.
    The proposed rule may also attract new operators, manufacturers, 
and automated data service providers compared to operating under the 
existing framework. For example, some entities may find the proposed 
rule requirements easier to navigate compared to describing how they 
will operate safely in a waiver or exemption request. Other entities 
may commence operations due to increased demand for BVLOS services. The 
types of affected entities are also likely to expand as technologies 
and use cases develop over time. In addition, entities holding waivers 
and exemptions from rules other than part 107 (e.g., agricultural 
operation under part 137) may be able to operate under part 108.\218\ 
Finally, part 91 operators not equipped with ADS-B Out or EC equipment 
may be affected in terms of losing right-of-way to UAS.
---------------------------------------------------------------------------

    \218\ Exemptions for UAS that provide relief from provisions 
within 14 CFR part 137 reflect UAS which are too heavy to fly under 
part 107. Since proposed rule permits heavier aircraft, these 
operators may transition to operate under part 108.
---------------------------------------------------------------------------

iii. Risks
    The greatest risks posed by current BVLOS operations include 
collision with manned aircraft, UA, and structures on the ground, that 
could result in property damage and fatalities or injuries to persons 
on the ground.\219\ While there are risks under the existing

[[Page 38346]]

part 107 framework,\220\ the BVLOS ARC found that there have been no 
fatalities and only one serious injury attributable to BVLOS operations 
under pilot programs.\221\
---------------------------------------------------------------------------

    \219\ See, e.g., comments from the National Agricultural 
Aviation Association and the Helicopter Association International on 
petition to amend Exemption No. 18601, available at 
www.regulations.gov/document/FAA-2019-0573-0078.
    \220\ See, e.g., NTSB accident report ERA24LA079, available at 
data.ntsb.gov/carol-main-public/basic-search.
    \221\ BVLOS ARC Report, at 11 (Mar. 10, 2022).
---------------------------------------------------------------------------

    Commenters on current exemptions have also described considerations 
related to noise, privacy, and security from BVLOS operations, and 
impacts on the environment from package delivery operations.\222\ For 
example, as FAA summarized, some commenters expressed concerns with the 
annoyance, stress, and emotional or physical discomfort caused by 
increased auditory and visual noise attributed to UA operations and UA 
intrusions on personal space. Other commenters were concerned with 
noise pollution, stating that UAs make an irritating noise, and that 
this would multiply as other companies begin or increase operating. 
These concerns continue to be present. In 2024, residents in College 
Station, Texas expressed concern regarding noise levels associated with 
drone deliveries to the City Council; the Mayor then wrote a letter to 
FAA regarding the operator's request to expand the service.\223\ The 
letter acknowledged that the operator's intent to use a newer quieter 
drone should have a positive effect on the perceived noise levels.
---------------------------------------------------------------------------

    \222\ See, e.g., summary of comments regarding intrusiveness and 
privacy and environmental concerns on Exemption No. 18601, available 
at www.regulations.gov/document/FAA-2019-0573-0059.
    \223\ City of college Station, Letter to FAA Regarding Amazon 
Drones (Jul. 15, 2024), available at www.cstx.gov/news/archived_news/letter_to_f_a_a_regarding_amazon_drones.
---------------------------------------------------------------------------

iv. Uncertainties
    A key uncertainty in the baseline for the analysis is the extent to 
which BVLOS operations are constrained by the current regulatory 
framework versus other factors that may affect each use case including 
technological, logistical, and financial considerations. That is, 
industry growth is occurring in the absence of the rule. For example, 
with its part 135 certification, DroneUp states it will have 
authorization to fly BVLOS up to five miles allowing a 300% increase in 
serviceable households and will continue to work with FAA to expand 
operations.\224\ Flytrex also states its service is growing fast and it 
is working to expand operations while adhering to the latest 
regulations.\225\ Seven UAS operators have now obtained part 135 
certification to operate as air carriers (as shown in table 8) and FAA 
has received additional applications. Similarly, there is uncertainty 
regarding operational risks that would emerge with continued BVLOS 
operations via waivers and exemptions.
---------------------------------------------------------------------------

    \224\ DroneUp, DroneUp Secures FAA Part 135 Certification, 
Revolutionizing Drone Delivery for All (Dec. 3, 2024), available at 
www.droneup.com/news/part135.
    \225\ See generally, FlyTrex, available at www.flytrex.com/.
---------------------------------------------------------------------------

2. Impact of the Rule
    As described in the baseline, FAA is already approving BVLOS 
operations, and operations using UA over 55 pounds, through waivers and 
exemptions. With the proposed rule, FAA would be codifying streamlined 
processes for these approvals that it has developed over the past few 
years. The proposed rule would provide a repeatable and consistent 
process in regulation and would eliminate the need for individual 
waivers and exemptions.
    For manufacturers, the proposed rule relies on industry consensus 
standards for UA design. Once developed and approved, however, the 
proposed rule would require operations under part 108 to use UA that 
meet the standards. This may represent an incremental cost to operators 
(depending on the price differential with current UA) and a market 
opportunity for US manufacturers. The proposed rule would provide 
certainty for manufacturers in both the standards and requirement for 
US manufactured UA.
    For operations, there may be little incremental impact because the 
proposed rule codifies existing processes. For example, FAA streamlined 
the approval process for part 137 agricultural operators to operate UA 
over 55 pounds. Agricultural operators typically operate in visual line 
of sight but with heavier UA needed for agricultural tasks, 
specifically spraying pesticides and herbicides. Proposed part 108 
provides for permitted or certificated (depending on the overflown 
population density) agricultural operations with UA over 55 pounds, 
replacing the streamlined exemption process. Similarly, for package 
delivery, the process for initial part 119 UAS operators operating 
under part 135 originally took years whereas more recent operators have 
obtained certification much quicker. Proposed part 108 would reflect 
this more recent experience and provide a dependable process. FAA has 
also streamlined the process for police departments (and other 
emergency services) to obtain a waiver to use detect and avoid 
technology to operate UA BVLOS; the proposed rule provides regulatory 
structure to eliminate the need for these waivers.
    For automated data services, the proposed rule again relies on 
industry consensus standards. Once approved, however, the proposed rule 
would establish requirements for use of such services, which represents 
a cost for operators and a new market for providers. The main impact of 
the proposed rule in this sector relates to low altitude deconfliction 
of UA. While there has not been a need yet for these services because 
of the limited operations with multiple operators in the same 
geographic area, there is a need for this deconfliction with scaled 
BVLOS operations. The proposed rule provides a regulatory structure 
under which service providers can operate at scale; as of June 2025, 
FAA and industry are testing this technology at one location.
3. Benefits
    The benefits of the proposed rule are the incremental values that 
result from the increased integration of UAS into the NAS, specifically 
BVLOS operations. These benefits would derive from increased regulatory 
certainty and efficiency in the process for initiating and continuing 
applicable operations under the proposed rule, such that benefits 
accrue sooner compared to the current process for enabling these 
operations. The proposed regulatory framework is also likely to enable 
a scale of operations not achievable under the current approach. For 
example, the BVLOS ARC found that regulatory changes are necessary to 
support industry growth. FAA Reauthorization Act of 2024 (and 2018), as 
well as the Agency's own experience trying to tailor existing 
regulations to UAS operations are also indicative of industry 
constraints under the existing framework. The proposed rule may also 
result in benefits that would not occur under the current process, such 
as those associated with an automated data service provider 
certification and service authorization.
i. Types of Benefits
    The BVLOS ARC identified broad categories of societal benefits that 
may be achieved through BVLOS operations including economic, safety, 
and health (table 10). These categories represent incremental impacts 
of BVLOS operations in general, and the magnitude of benefits would 
depend on the extent to which operations scale

[[Page 38347]]

under the rule compared to the existing regulatory framework.

        Table 10--Categories of Benefits of UAS BVLOS Operations
------------------------------------------------------------------------
         Category                           Description
------------------------------------------------------------------------
Economic.................  Use cases that provide an economic benefit
                            such as cost savings and expanded market
                            opportunities.
Safety...................  Operations that result in improved safety
                            such as replacing risk in manned aviation
                            operations and public safety use cases or
                            monitoring the perimeter of a large critical
                            infrastructure facility.
Health...................  Operations could potentially lead to
                            opportunities to improve both individual and
                            community health, such as delivery of
                            vaccines or important medications.
------------------------------------------------------------------------
Source: BVLOS ARC Report (March 2022).

a. Economic Benefits
    Economic benefits arise from the range of use cases through new and 
expanded market opportunities and cost savings. For example, to the 
extent that sales of various products or services increase under the 
rule above and beyond what would occur under the current regulatory 
framework (i.e., not simply offsetting existing sales), this represents 
new economic activity and thus benefits. The rule will also increase 
the market for and providers of automated data services.
    New economic activity may also enhance health and the availability 
of services to growing communities. Enabling BVLOS operations could 
also have a transformative impact on logistics and a variety of 
infrastructure inspections. Automated data services may provide a cost-
effective, safe, and scalable means for those UAS operators to meet 
some of their regulatory requirements. FAA anticipates that a market 
would develop to provide these services following the implementation of 
this rule.
b. Safety Benefits
    Safety benefits would accrue to the extent that a variety of 
operations could be executed more safely, and on a greater scale than 
currently conducted. As shown in table 9, many operations, such as 
infrastructure inspections are already being conducted with UAS beyond 
VLOS. The proposed rule may amplify these operations beyond or sooner 
than what would occur under the existing framework. Safety benefits 
could accrue through modifying existing activity, such as replacing 
traditional methods (e.g., manned aviation or truck delivery) with UAS, 
or through new activity (additional public safety operations).
    For example, for package delivery, safety benefits are influenced 
largely by how many of the UA operations would be replacing traditional 
delivery methods, and how many would be in addition to traditional 
delivery methods. A delivery that replaces traditional delivery methods 
can be expected to result in significant safety increases. As discussed 
above, FAA has not observed any fatalities due to BVLOS UAS use, but 
traffic fatalities remain a leading cause of death in the United States 
so substitution toward UA and away from delivery trucks is likely to 
lead to a reduction in fatalities.
    Conversely, if the flights represent new sales, then there would be 
minimal impact on safety benefits. In addition, though there have been 
no observed fatalities due to BVLOS UAS operations, it is conceivable 
that a dramatic increase in the number of operations could reveal such 
a risk. However, it is also possible that the processes and standards 
laid out in proposed part 146 would result in lower risk with greater 
adoption due to network effects such as UAS sharing data and well-
defined roles and rules.
    Similarly, in agriculture, the potential for incremental aviation 
safety benefits \226\ depends on the extent to which those operators 
still conducting manned operations switch to UAS. The proposed rule 
would not obligate any changes. Manned aircraft also have larger yields 
and operators may not have any incentive to switch to a fleet of UAS if 
they do not have the capital to buy multiple UAS.
---------------------------------------------------------------------------

    \226\ Based on data from NTSB Accident and Incident Database/
Incidents from FAA Accidents and Incident Database (A/IDS), in 2024 
there were 13 fatal accidents, eight (8) accidents resulting in 
serious injury, and eight (8) accidents resulting in minor injuries 
among agricultural operations under part 137.
---------------------------------------------------------------------------

    The ARC also identified that UAS operated BVLOS could result in 
benefits to include monitoring critical infrastructure. Critical 
infrastructure is also an area where unauthorized UA pose a security 
threat. Benefits would be attributable to the rule to the extent that 
more such operations, or more timely operations, are enabled through 
the permitted or certificated process under the rule.
c. Health Benefits
    BVLOS operations could have a transformative impact on logistics 
such as for the timely delivery of health care products (e.g., 
medications). Benefits would accrue to the extent that such services 
reach a greater percentage of the population compared to under the 
existing framework. Further, these benefits could especially impact 
rural communities where health access is limited.
ii. Magnitude of Benefits
    Estimating the magnitude of benefits of the rule would require 
forecasting BVLOS operations and associated impacts with and without 
the rule and estimating the value of the incremental changes. Because 
BVLOS operations are still developing under the existing regulatory 
framework and the regulatory environment represents only one potential 
impediment to scaling these operations, there is substantial 
uncertainty in doing so. FAA currently does not identify BVLOS 
operations separately in its UAS forecast; \227\ with the completion of 
a final rule, part 108 activity can be specifically identified in 
future forecasts.
---------------------------------------------------------------------------

    \227\ Available at www.faa.gov/data_research/aviation/aerospace_forecasts/unmanned_aircraft_systems.pdf.
---------------------------------------------------------------------------

    Nonetheless, industry has commissioned studies to estimate the 
benefits of UAS, including BVLOS operations, that foresee values in the 
hundreds of millions of dollars. These studies illustrate the 
motivation behind desired investments in BVLOS technologies. Benefits 
attributable to the rule would be the portion of this value, if 
achieved, that can be directly tied to removing regulatory impediments 
through the rule.
    Given the uncertainty, FAA has not quantified the benefits of the 
rule. Indeed, societal values may also change over time, in either 
direction, since the range of logistical and environmental outcomes 
have only been experienced on a limited or pilot scale. Technological 
or changes on other

[[Page 38348]]

fronts may also affect the future and values.
    With this caveat, the studies show how benefits may scale under 
specific scenarios. For example, one study of package delivery 
operations \228\ showed that in five years, in a single U.S. 
metropolitan area, UAS delivery could recover up to $582.5 million per 
year in total time savings for consumers; \229\ generate up to $284,000 
per year in new annual sales for a participating local business; \230\ 
assist as many as 66,000 residents who lack access to a vehicle and 
22,000 with mobility challenges to obtain their prescription 
medication; avoid up to 294 million miles per year in road use and up 
to 580 car crashes per year; and reduce up to 113,900 tons of carbon 
dioxide emissions per year.\231\
---------------------------------------------------------------------------

    \228\ Virginia Tech Office of Economic Development and the Grado 
Department of Industrial and Systems Engineering, Measuring the 
Effects of Drone Delivery in the United States (2020), available at 
vtechworks.lib.vt.edu/items/ab84e0fb-a204-44e9-a51b-99e237d60293.
    \229\ In communities with greater distances between commercial 
centers and residences, consumers may benefit more through time 
saved whereas in denser communities with high costs of living, 
consumers may benefit more from the value of time saved.
    \230\ See Measuring the Effects of Drone Delivery in the United 
States, supra at n. 228 (2020) (Local business included restaurants, 
pharmacies, retail businesses that use traditional parcel delivery, 
and retailers of smaller items who currently do not offer delivery).
    \231\ The BVLOS ARC Report also references a study by Levitate 
Capital that provides estimates of the market for drones by use case 
and notes impacts of limitations on BVLOS, see infra n. 237.
---------------------------------------------------------------------------

    For this scenario, FAA would value reduced fatalities and injuries 
resulting from car crashes using the value of statistical life (VSL) 
and the Maximum Abbreviated Injury Scale (MAIS).\232\ For example, 
reduction in the risk of one fatality generates benefits equal to the 
VSL (approximately $12.5 million). Reduction in the risk of serious 
injury generates benefits equal to the fraction of the VSL associated 
with MAIS level 3 (.105), or approximately $1.3 million (.105 x $12.5 
million). Similarly, the value of reduced emissions can be estimated 
using the social cost of greenhouse gases.\233\
---------------------------------------------------------------------------

    \232\ U.S. Department of Transportation, Treatment of the Value 
of Preventing Fatalities and Injuries in Preparing Economic Analyses 
(2021), https://www.transportation.gov/resources/value-of-a-statistical-life-guidance.
    \233\ E.g., the value of the reduced emissions cited would be 
$19.6 million annually based on a value of $190 per metric ton in 
2020 and a 2 percent discount rate; see EPA Report on the Social 
Cost of Greenhouse Gases: Estimates Incorporating Recent Scientific 
Advances, table ES-1, available at www.epa.gov/environmental-economics/scghg.
---------------------------------------------------------------------------

    These results are specific to the three representative metropolitan 
areas (Christiansburg, VA; Austin, TX; and Columbus, OH) chosen to 
represent cities with varying population densities and transportation 
challenges. They also reflect existing drone capabilities as well as 
assuming drone delivery can match or exceed existing delivery services 
for cost and convenience. Therefore, the extent to which the results 
can be extrapolated more widely or the extent to which implementation 
will occur in the absence of the rule is uncertain.
    Zipline also provides references to studies of the positive health 
impact of its UAS package delivery operations in foreign 
countries,\234\ suggesting the potential for gains in rural areas of 
the United States. Zipline also asserts its flights reduce the carbon 
emissions of deliveries by 97 percent compared to gas cars. Again, 
based on the social costs of greenhouse gases, the value of reduced 
emissions could be significant. As with the previous study, the 
ultimate adoption and extent to which it would not occur in the absence 
of the rule is uncertain.
---------------------------------------------------------------------------

    \234\ See www.regulations.gov/document/FAA-2024-1317-0004.
---------------------------------------------------------------------------

    The magnitude of benefits shown in these examples would be reduced 
by any disbenefits from increased risks that accompany new or scaled 
BVLOS operations, including noise, annoyance, and privacy intrusions, 
as well as any increased safety risks from drone interactions with 
manned aviation or persons and property on the ground. Technological 
advancements and rule requirements may alleviate the potential for some 
effects (e.g., deconfliction and avoidance reducing potential for 
collisions) but not all (e.g., increased operations enabled by quieter 
drones may increase annoyance from flying objects). Again, given the 
limited scale of BVLOS deployment to date, the extent to which existing 
concerns and any early incidents can be extrapolated under the rule is 
uncertain.
    In summary, benefits would be attributable to the proposed rule to 
the extent BVLOS operations are constrained under the current 
regulatory framework or accrue sooner under the proposed rule. For 
example, the BVLOS ARC maintained that regulatory predictability and 
certainty are important to provide the marketplace with stability. 
Though granting individual exemption petitions may enable UAS operators 
to meaningfully scale operations,\235\ the pace may be much accelerated 
under a rulemaking framework. Realizing benefits sooner is significant 
considering the social rate of time preference (e.g., discounting 
future benefits by 3 percent annually). New entrants due to increased 
demand for BVLOS services under the simplified regulatory structure 
would also represent new economic activity attributable to the proposed 
rule. Subtracted from these positive impacts would be any negative 
values from any increases in risks that accompany new or scaled BVLOS 
operations.
---------------------------------------------------------------------------

    \235\ See www.regulations.gov/document/FAA-2024-1317-0004.
---------------------------------------------------------------------------

iii. Uncertainties
    The key uncertainty in the analysis of benefits is the rate and 
extent to which affected entities and new entrants take advantage of 
the proposed rule to increase BVLOS operations. Uncertainty also 
relates to the effectiveness of the proposed requirements in not 
increasing risks in the NAS.\236\ In the event of any accidents or 
incidents (e.g., encounters with manned aircraft), reactions could slow 
growth of BVLOS operations to a pace more similar to that under the 
current regulatory framework. There are also uncertainties with respect 
to the impacts of different use cases. For example, one study noted 
that ``instead of accelerating the retirement of surveying and mapping 
professionals, drones have proven to be practical tools that enhance 
the quantity and quality of services that existing professionals 
provide.'' \237\
---------------------------------------------------------------------------

    \236\ The role of SMS in reducing risks.
    \237\ See Levitate Capital, The Future of the Drone Economy 
(Dec. 2020), available at levitatecap.com/levitate/wp-content/uploads/2020/12/Levitate-Capital-White-Paper.pdf.
---------------------------------------------------------------------------

    Given uncertainties regarding the extent of new economic activity, 
associated effects such as impacts on emissions are also uncertain. For 
example, reductions in emissions would be driven by using electrically 
powered UA instead of gasoline or diesel-powered land vehicles.\238\ 
The electricity would still result in some emissions being created, as 
it must be generated. The quantity of those emissions depends on the 
type of power generation plant used to produce electricity, which in 
turn depends on the location of the UAS being charged. However, power 
generation facilities are generally more efficient than vehicle engines 
at extracting energy from fuel and can implement more rigorous 
filtering of exhaust, and so the emissions would potentially be reduced 
regardless of the location.
---------------------------------------------------------------------------

    \238\ While UA are powered by batteries, the batteries are 
rechargeable which occurs through the electric grid.

---------------------------------------------------------------------------

[[Page 38349]]

    Finally, there is also uncertainty with respect to some of the less 
desirable impacts of drones, including noise, annoyance, and privacy 
impacts, and the effect of any increases in reducing the magnitude of 
benefits or realizing the economic gains. A variety of factors and the 
ultimate BVLOS deployment scenarios will influence the magnitude of 
these effects.
4. Costs
    The proposed rule may result in incremental costs to comply with 
requirements for design and production, and operations compared to 
under the existing regulatory framework. The sections below discuss 
these considerations as well as the cost implications to become an 
automated data service provider.
i. Design and Production
    The proposed rule would establish performance-based design, 
production, and airworthiness requirements for part 108-compliant UAS. 
Voluntary consensus standards bodies would then develop consensus 
standards for FAA acceptance or approval that they will propose as a 
MOC to meet regulatory requirements. Manufacturers can then design and 
produce UA in compliance with the consensus standards. Manufacturers 
must also comply with requirements for: finding of compliance, DOC, 
quality assurance system, operational safety program, production 
acceptance testing, COS program, flight test data storage, 
developmental testing, function and reliability testing, cybersecurity 
protection, airworthiness acceptance application, inspections and 
audits, and documenting design changes.
    FAA reviewed conditions placed on existing manufacturers of UAS for 
BVLOS to identify the extent to which the proposed requirements would 
represent incremental requirements.\239\ Since the consensus standards 
are not yet available, the extent of any design changes is uncertain. 
However, as reflected in current exemptions, manufacturers already 
update and revise designs for new technology and capabilities.\240\ The 
designs of UAS used by existing part 135 operators conducting package 
delivery also may not need any major design changes. For example, some 
proposed standards reflect existing requirements for those operators 
(e.g., anti-collision lights).
---------------------------------------------------------------------------

    \239\ See e.g., dockets FAA-2019-0573, FAA-2020-0499, and FAA-
2022-0268.
    \240\ See e.g., a December 2023 petition to amend exemption to 
enable operation of the operator's latest drone system in commercial 
package delivery operations, available at www.regulations.gov/document/FAA-2019-0573-0079.
---------------------------------------------------------------------------

    Many other proposed requirements also reflect existing processes 
and procedures, for example, quality assurance, production inspection 
and testing, cybersecurity,\241\ and manuals and instructions. 
242 243 Others likely involve only minimal expenditure. For 
example, submitting a DOC, required for each individual UA manufactured 
in accordance with a MOC, could be done in batches of up to 500 
aircraft at a time in a few minutes of time.
---------------------------------------------------------------------------

    \241\ See, e.g., the security protocol DJI drones provide to 
prevent hijacking by third parties, available at enterprise.dji.com/data-security.
    \242\ See e.g., the previously referenced petition, available at 
https://www.regulations.gov/document/FAA-2019-0573-0079.
    \243\ The Skydio production process includes inspection and 
flight testing of every UA, available at www.youtube.com/watch?v=NHumG_QsFZ0.
---------------------------------------------------------------------------

    Some requirements may result in incremental expenditures depending 
on the extent to which manufacturers are not already performing similar 
activities. Table 11 describes these proposed requirements and 
potential cost considerations. For example, FAA assumes that the 
incremental cost associated with data storage comes entirely from the 
cost of renting a server to hold the data. Because the data can be 
gathered automatically, FAA assumes that the cost of gathering the data 
will be minimal. However, with respect to airworthiness acceptance, 
existing processes have included type certification, special 
airworthiness certification, and obtaining FAA approval for any changes 
to the type of UA used.\244\ Therefore, the proposed process for 
airworthiness acceptance may not represent an incremental level of 
expenditure (and may represent a cost savings compared to existing 
processes).\245\
---------------------------------------------------------------------------

    \244\ See e.g., www.regulations.gov/document/FAA-2019-0628-0052, 
www.regulations.gov/document/FAA-2023-1827-0012, and 
www.regulations.gov/document/FAA-2024-1317-0004.
    \245\ There is significantly less FAA involvement in proposed 
process. From an airworthiness perspective, the time and effort 
required to develop issue papers, negotiate airworthiness 
requirements, and approve and witness test plans and reports would 
be notably reduced. These steps are typically part of establishing 
the certification basis, which can take several years (and has for 
an existing manufacturer). In contrast, under the proposal, there 
would be no need for negotiated compliance, as manufacturers design 
their systems to meet accepted industry consensus standards. This 
approach results in cost savings for both FAA and the applicant.

          Table 11--Potential Incremental Costs: Manufacturers
------------------------------------------------------------------------
                                                          Unit cost
          Category                 Description           information
------------------------------------------------------------------------
Airworthiness acceptance....  Documentation of MOC  Potential cost
                               with accepted or      saving compared to
                               approved consensus    type certification
                               standards.            or special
                                                     airworthiness
                                                     certification; No
                                                     data available.
COS program.................  Monitoring and        Dependent on number
                               resolution of in      of designs; No data
                               service safety        available.
                               issues and
                               identified non-
                               compliance.
Data storage................  Storage of model      $6,000 per year.\1\
                               flight data for 2
                               years.
------------------------------------------------------------------------
COS = continued operational safety.
MOC = means of compliance.
\1\ Based on $500 monthly costs. See, e.g.: www.liquidweb.com/products/dedicated/ dedicated/.

    For example, data storage costs for the 30 manufacturers may cost 
in the range of $180,000 annually ($0.2 million annualized using 
discount rates of 3 and 7 percent over a 5-year period). FAA does not 
have data on COS program costs which may depend on the manufacturer's 
size. However, large manufacturers may already be implementing COS as 
standard practice. FAA requests comments and data relevant to UA 
manufacturers.
ii. Operations
    Operators must apply for an operating permit or operating 
certificate. Applications for an operating permit must include a 
description of the type and area of operations, company manual, 
recordkeeping plan, and reporting procedures. Applications for an 
operating certificate must include a description of the type and area 
of operations, company manual, recordkeeping plan, reporting 
procedures, training program, communications and ground risk 
assessment, SMS, hazardous materials program, inoperable equipment 
plan, and rest and duty plan. Operating

[[Page 38350]]

permits must be renewed every two years while operating certificates 
will not need renewal. In addition, the proposed requirements include 
strategic deconfliction capability and conformance monitoring (for 
certain operations), alerting capability, validation testing 
(certificated operators), mandatory staff positions, STAs of covered 
persons, and security programs under 49 CFR part 1544.
    FAA reviewed conditions placed on existing operators to conduct 
BVLOS operations to identify the extent to which the proposed 
requirements would represent incremental requirements. To large extent, 
the proposed requirements reflect conditions in existing waivers and 
exemptions. For example, existing waivers require specific approved UA, 
UA performance standards (e.g., anti-collision lighting 
specifications), specific personnel (including qualifications and TSA 
vetting), operations manuals, tracking revisions to manuals, training 
of personnel involved in UAS operations, notifications of operations, 
and maintenance requirements and logs. Existing part 135 certificate 
holders conducting package delivery operations under exemptions have 
similar existing requirements, as well as hazardous materials 
procedures and training.\246\ Similarly, part 135 certificate holders 
are already required to develop and implement an SMS under part 
5.247 248 Other requirements may be different but not 
represent incremental expenditures (e.g., existing staff taking on a 
required position such as operations supervisor) or minimal (e.g., 
strategic deconfliction and conformance monitoring costs).
---------------------------------------------------------------------------

    \246\ For example, requirements include: personnel positions and 
qualifications, manuals, training, notifications, strategic 
deconfliction conformance monitoring, ground risk assessment, 
communications service monitoring and lost link procedures, UA 
maintenance requirements, and recordkeeping and reporting (see 
www.regulations.gov/document/FAA-2019-0573-0078 and 
www.regulations.gov/document/FAA-2019-0573-0079).
    \247\ Proposed rule includes exceptions from the part 5 elements 
of: safety policy, including employee reporting of safety hazards or 
issues; safety accountability and authority; designation and 
responsibilities of required safety management personnel; 
coordination of emergency response planning; safety performance 
monitoring and measurement, including a confidential employee 
reporting system; safety communication; and records.
    \248\ FAA has also required SMS as condition for waiver (see 
https://www.faa.gov/sites/faa.gov/files/107W-2024-00828_Eric_Schwartz_CoW.pdf).
---------------------------------------------------------------------------

    However, some requirements may result in one time and recurring 
expenditures, depending on the operator. Table 12 describes these 
proposed requirements and potential cost considerations.

            Table 12--Potential Incremental Costs: Operators
------------------------------------------------------------------------
                                                          Unit cost
          Category                 Description           information
------------------------------------------------------------------------
Operations manual updates...  Updates would         Dependent on company
                               include the           size and
                               personnel required    operations; $500 (8
                               and their duties      hours) to $1,850
                               and                   (32 hours).\1\
                               responsibilities,
                               and procedures for
                               complying with the
                               recordkeeping and
                               reporting
                               requirements.
SMS (certificated operations  Develop, implement,   Scalable based on
 only).                        and keep current an   size and
                               SMS (14 CFR part 5)   complexity; $8,100-
                               \1\.                  $41,180 one-time,
                                                     $4,730-$42,580
                                                     annual.\3\
Limited TSA security program  Program to prevent    Costs will vary
 (package delivery             or deter carriage     depending on the
 operators).                   of unauthorized       specific security
                               packages and          program. Components
                               unauthorized access   could include chain
                               to operations.        of custody and
                                                     operational
                                                     controls, security
                                                     coordination,
                                                     training, and
                                                     reporting.
Vetting/STAs................  Covered persons must  There is an
                               undergo TSA STA, up   opportunity cost of
                               to a Level 3 STA,     time to undergo
                               prior to assuming     vetting (estimated
                               certain security-     at approximately
                               sensitive duties.     1.5 hours), and an
                                                     estimated initial
                                                     enrollment fee of
                                                     $87, in-person
                                                     renewal fee of $76,
                                                     online renewal of
                                                     $51, and
                                                     comparability
                                                     determination fee
                                                     of $30. For a Level
                                                     2 STA (which is not
                                                     proposed), the
                                                     initial in-person
                                                     enrollment and in-
                                                     person renewal fee
                                                     is $66, the online
                                                     renewal fee is $41,
                                                     and the comparable
                                                     STA fee is $30.\4\
------------------------------------------------------------------------
SMS = safety management system; STA = security threat assessment.
\1\ Based on the extent of changes needed and an average wage rate
  increased to account for benefits ($64/hour). Average wage based on
  the mean for Aerospace Engineering and Operations Technologists and
  Technicians ($39.08; updated to $39.74 for inflation using the
  Consumer Price Index for All Urban Consumers) divided by the percent
  of total employer costs of employee compensation represented by wages
  (62%) to account for benefits (38%). Wages and benefits information
  available at: https://www.bls.gov/oes/2023/may/oes173021.htm and
  https://www.bls.gov/news.release/ecec.t04.htm#ect_table4.f.1.
\2\ Except the following 14 CFR part 5 requirements: Sec.  Sec.
  5.21(a)(4), 5.21(a)(5), 5.21(c), 5.23(a)(2), 5.23(a)(3), 5.23(b),
  5.25(b)(3), 5.25(c), 5.27(a), 5.27(b), 5.71(a)(7), 5.93, and 5.97(d).
\3\ Estimates reflect part 135 certificate holders with 1-9 crewed
  aircraft based on the regulatory impact analysis accompanying the SMS
  final rule (89 FR 33068 published 4/26/24; table 26). FAA does not
  have data specific to UA operations. One-time costs reflect gap
  analysis, SMS development, training, documentation, and other (e.g.,
  safety promotion) activities; annual costs reflect data collection and
  analysis, SMS review and evaluation, software, training,
  documentation, and other (e.g., ongoing safety promotion) activities.
\4\ TSA estimates the time and fees based on the methodology and fees
  from the TSA Security Vetting of Certain Transportation Workers NPRM.
  See NPRM: Surface Vetting Preliminary Regulatory Impact Analysis and
  Initial Regulatory Flexibility Analysis, Document ID TSA-2023-0001-
  0004, p. 73 (May 25, 2023) available at https://www.regulations.gov/document/TSA-2023-0001-0004. For example, they estimate approximately
  1.5 hours of time and an initial enrollment fee of $87 for a Level 3
  STA. These costs may change over time.

    For example, if all 239 operators (nine exemption holders and 230 
unique waiver holders) incur initial expenditures for manual updates 
equal to the high estimate in table 11 and annual expenditures equal to 
the low estimate, one-time costs would be $488,769 and annual costs 
would be $122,192 ($0.2 million annualized using discount rates of 3 
and 7 percent over a 5-year period). Similarly, if the four exemption 
holders that are currently not part 135 certificate holders or 
otherwise have already implemented SMS become certificated operators 
under part 108, one-time SMS costs could be in the range of $66,160 and 
annual costs in the range of $75,700 ($0.1 million annualized using 
discount rates of 3 and 7 percent over a 5-year period) based on the 
midpoint of the cost ranges in table

[[Page 38351]]

12. However, for any new certificated operators conducting package 
delivery, these costs would be offset by not incurring costs to obtain 
a part 135 certificate.\249\
---------------------------------------------------------------------------

    \249\ As it stands today, operating under part 135 requires a 
lengthy exemption process for UAS operators because they cannot 
comply with the regulations as written. As a result, they must 
identify and document all exemptions that they need, and FAA must 
issue the exemptions before they can issue an operating certificate. 
FAA and the few UAS operators currently operating under part 135 
have spent substantial resources on this process. Because it is new 
and novel, these costs may not be exemplary of those that future 
applicants would incur in the absence of the rule. However, the cost 
savings associated with the streamlined provisions contained in part 
108 are likely significant.
---------------------------------------------------------------------------

    In addition, operators must use part 108-compliant UA. The extent 
to which the proposed rule affects price levels of UA compared to under 
existing waivers and exemptions is unknown, but likely to change with 
industry growth over time. Operators must also use strategic 
deconfliction and conformance monitoring capabilities provided by an 
automatic data service provider in certain airspace and over certain 
populations. Therefore, in some cases, operators would need to either 
become certificated to provide services with those capabilities or 
obtain the service from some other certificated automated data service 
provider.
    Finally, to obtain the benefits from scaling operations, operators 
would incur costs from business expansion and increased risks not 
mitigated by the proposed rule requirements (e.g., potential insurance 
cost increases, replacement parts, replacement UA). FAA does not have 
data to estimate these costs.
iii. Automated Data Service Provision
    The proposed rule would not require that any entities become 
automated data service providers. However, because operators must 
obtain strategic deconfliction and conformance monitoring capability 
from an automated data service provider to operate in controlled 
airspace, or a capability for strategic deconfliction to operate over 
Category 3, 4, or 5 population densities, one or more automated data 
service providers will be needed for certain BVLOS operations under the 
proposed rule. Entities choosing to become an automated data service 
provider must: obtain a certificate for one of three service levels 
(Level 1, 2, or 3, depending on the complexity of the operation that 
the automated data service supports), including documentation how it 
meets applicable proposed part 146 requirements, provide cyber and data 
security, develop and implement an SMS, have a change management 
process, have a training program, report incidences, retain records, 
meet data exchange requirements including non-repudiation, and meet 
software update requirements for versioning, testing, user 
notification, and FAA notification and approvals, depending on service 
levels.
    Many of the proposed requirements represent standard business 
practices among data and software providers (e.g., records of data 
exchanged with service users). However, some proposed requirements may 
result in one-time and recurring expenditures, depending on the entity. 
Table 13 describes these proposed requirements and potential cost 
considerations. FAA does not have data on the incremental costs of non-
repudiation services and seeks comment on this issue.

 Table 13--Potential Incremental Costs: Automated Data Service Providers
------------------------------------------------------------------------
                                                          Unit cost
          Category                 Description           information
------------------------------------------------------------------------
SMS.........................  Develop, implement,   Scalable based on
                               and document an SMS   size and
                               (14 CFR part 5) \1\.  complexity, $8,100-
                                                     $28,140 one-time
                                                     and $540-$10,940
                                                     annually.\2\
Non-repudiation.............  Services must use a   No data.
                               validation and
                               verification method
                               that provides
                               assurance of the
                               integrity and
                               origin of the data
                               exchanged with the
                               user.
Training....................  Includes best         Dependent on company
                               practices in          size, $1,400 per
                               distributed           person annually.\3\
                               software
                               development;
                               applicable
                               regulations and ACs
                               relating to
                               automated data
                               services, airspace
                               classification,
                               operating
                               requirements, and
                               flight
                               restrictions;
                               aviation safety
                               culture concepts;
                               and best practices
                               in the provision of
                               automated data
                               services for
                               aviation users.
------------------------------------------------------------------------
AC = Advisory Circular.
\1\ Except the following 14 CFR part 5 requirements: Sec.  Sec.   5.7,
  5.9, 5.11, 5.13, 5.15, 5.27, and 5.71(c).
\2\ Estimates reflect part 21 type and production certificate holders
  with 1-99 employees based on the regulatory impact analysis
  accompanying the SMS final rule (89 FR 33068 published 4/26/24; table
  24). FAA does not have data specific to potential automated data
  service providers.
\3\ Estimated based on time (20 hours) valued at average loaded hourly
  wage rate ($58) plus $250 course cost based on typical training
  courses to obtain part 107 UA pilot license (e.g., www.flyingmag.com/best-drone-pilot-course/). FAA does not have data specific to training
  for automated data service providers.

    For example, entities choosing to become automated data service 
providers could incur costs to develop and implement an SMS if they 
have not already done so under FAA's SMS voluntary program or required 
under part 5 (part 135 certificate holders and aircraft design and 
manufacturers holding a type certificate and production certificate for 
the same product). SMS costs could be in the range of $28,000 one-time 
and $11,000 annually for a company of 99 employees ($0.02 million 
annualized using discount rates of 3 and 7 percent over a 5-year 
period). For the same size company, training costs could be in the 
range of $138,600 annually (99 x $1,400; $0.1 million annualized using 
discount rates of 3 and 7 percent over a 5-year period). Total industry 
costs would depend on the mix of sizes and types of potential automated 
data service providers. For example, for an existing part 135 
certificate holder (e.g., conducting package delivery under an 
exemption) to become an automated data service provider, incremental 
costs would not include SMS. Also, due to the airspace and population 
density around their typical operating environments, agricultural 
operators are not likely to require use of these services. FAA requests 
comments regarding the likely use and provision of automated data 
services.

[[Page 38352]]

iv. Uncertainties
    The key uncertainty in the analysis of costs relates to the 
incremental nature of the proposed requirements (i.e., compared to 
existing practices in a wide variety of industries and BVLOS operations 
via waivers and exemptions). This uncertainty affects who is likely to 
take advantage of BVLOS in the future (including, for operators, 
through a permit or certificate) affecting both benefits and costs. 
Also, impacts of the proposed rule that are dependent on consensus 
standards are uncertain because the standards are currently not 
available. In addition, changes in response to the proposed rule may 
lower unit costs through industry-developed solutions aimed at cost-
effective compliance (similar to tools developed to assist with a part 
5 compliant SMS). Entities with scaled operations (i.e., certificated) 
may also be cost-effective service providers for individual operators 
(i.e., compared to continuing under a permit).
    Finally, there is uncertainty with respect to the impact on part 91 
operators not equipped with ADS-B or EC equipment. These operators may 
incur costs to add equipment or as a result of loss of right-of-way. 
However, right-of-way impacts would be very site and situation specific 
and thus very difficult to estimate.
5. Comparison of Benefits and Costs
    FAA is unable to quantify the benefits of the proposed rule. 
However, existing studies are indicative of the types and potential 
magnitude of benefits. When considered in the context of the myriad of 
potential applications and locations nationwide, FAA anticipates that 
the benefits from scaled BVLOS are significant. To the extent risks of 
scaled operations are successfully mitigated, and the scale or pace of 
scaling could not occur under the existing framework, benefits are 
attributable to the proposed rule. Given that the proposed rule 
includes requirements that mirror current BVLOS exemptions, while also 
proposing new requirements to mitigate risks inherent in expanded BVLOS 
operations, there are few incremental costs, and FAA anticipates that 
the benefits would likely exceed costs.
6. Alternatives
    FAA does not have data to quantify the benefits and costs of the 
alternatives to the proposed rule. Table 14 provides qualitative 
evaluation of the potential impacts. For design and manufacturing, FAA 
considered requiring a special airworthiness certification rather than 
proposed airworthiness acceptance. Section X.A. describes the 
differences in these two approaches. FAA determined the alternative 
would not increase safety. As noted in table 14, the proposed approach 
may represent cost savings compared to obtaining special airworthiness 
certification. For example, under the alternative, the applicant would 
need to host FAA airworthiness inspection and document review. The 
alternative would also increase Agency costs, including to inspect 
aircraft and review documentation.
    For operations, FAA considered requiring package delivery operators 
to obtain a part 119 air carrier certificate and certificating each 
type of personnel involved in the control of a UA. Section VIII.A.1 
describes the differences between obtaining an air carrier certificate 
and the proposed permits and certificates for UAS operators. Section 
VII.A.1 discusses the differences regarding personnel between manned 
aviation and UAS, and FAA's rationale for selecting the proposed 
approach. FAA determined that these alternatives would have little 
impact on safety and would increase costs. The extra administrative 
process and structure in these alternatives is not optimized to UAS, 
necessitating a lot of waivers and exemptions. Waivers and exemptions 
lead to additional costs without affecting benefits.
    For automated data service providers, FAA considered a traditional 
ATM model approach and different approaches discussed by the BVLOS ARC. 
FAA determined that these alternatives would potentially increase risks 
in the NAS and the ATM model would increase FAA costs.

                         Table 14--Alternatives
------------------------------------------------------------------------
                                                     Impact on benefits
         Alternative               Description            and costs
------------------------------------------------------------------------
Design and Production:
    Special airworthiness     Resemble              Increase FAA costs
     certification.            certification of      and potentially
                               light-sport           manufacturers'; no
                               category aircraft     change in safety
                               under part 21 using   (benefits).
                               industry consensus
                               standards, FAA
                               inspection of every
                               UAS.
Operations:
    Part 119 certification    Require package       Increase costs for
     for package delivery.     delivery operators    new package
                               to obtain a part      delivery operators
                               119 air carrier       (no impact on
                               certificate.          existing); no
                                                     change in safety
                                                     (benefits).
    Personnel certification.  Certificating each    Increase operator
                               type of personnel     costs; marginal
                               involved in the       safety assurances.
                               control of a UA.
Automated Data Service
 Provision:
    Air traffic management..  FAA manage            Increase FAA costs;
                               separation of UAS     potentially
                               and system-wide       increase risks to
                               efficiency of part    the NAS.
                               108 operations.
    BVLOS ARC                 MOC and DOC for       Unclear impact on
     recommendations.          certification;        costs; potential
                               requiring minimal     increase in risks.
                               information on
                               provider; and
                               recognizing
                               specific UTM
                               services.
------------------------------------------------------------------------

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) of 1980, Public Law 96-354, 94 
Stat. 1164 (5 U.S.C. 601-612), as amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 
857, Mar. 29, 1996), and the Small Business Jobs Act of 2010 (Pub. L. 
111-240, 124 Stat. 2504 Sept. 27, 2010), requires Federal agencies to 
consider the effects of the regulatory action on small business and 
other small entities and to minimize any significant economic impact. 
The term ``small entities'' comprises small businesses and not-for-
profit organizations that are independently owned and operated and are 
not dominant in their fields, and governmental jurisdictions with 
populations of less than 50,000.
    FAA and TSA are publishing this Initial Regulatory Flexibility 
Analysis (IRFA) to aid the public in commenting on the potential 
impacts to small entities from this proposal. FAA and

[[Page 38353]]

TSA invite interested parties to submit data and information regarding 
the potential economic impact that would result from the proposal. FAA 
and TSA will consider comments when making a determination or when 
completing a Final Rule.

C. Regulatory Flexibility Analysis

    An IRFA must contain the following:
    (1) A description of the reasons why the action by the agency is 
being considered;
    (2) A succinct statement of the objective of, and legal basis for, 
the proposed rule;
    (3) A description of and, where feasible, an estimate of the number 
of small entities to which the proposed rule will apply;
    (4) A description of the projected reporting, recordkeeping, and 
other compliance requirements of the proposed rule, including an 
estimate of the classes of small entities which will be subject to the 
requirement and the type of professional skills necessary for 
preparation of the report or record;
    (5) An identification, to the extent practicable, of all relevant 
Federal rules that may duplicate, overlap, or conflict with the 
proposed rule; and
    (6) A description of any significant alternatives to the proposed 
rule which accomplish the stated objectives of applicable statutes, and 
which minimize any significant economic impact of the proposed rule on 
small entities.
1. Reasons the Action Is Being Considered
    As described elsewhere in this preamble, the proposed rule 
addresses the rapid advancement of UAS technology, and the lack of 
regulation which specifically addresses, allows, and ensures the safety 
of operations with said technology when operated BVLOS or at large 
scale. This is discussed in section IV.A of this preamble.
2. Objectives and Legal Basis of the Proposed Rule
    As described elsewhere in this preamble, the objective of the 
proposed rule is to allow UAS to operate for commercial and 
recreational purposes beyond the VLOS of operators and at low altitudes 
in the NAS. This is done with the intent to enable a greater number and 
size of operations while still ensuring the safety of the NAS. Section 
I.A of this preamble discusses this in greater detail. The legal 
authority for the proposed rule is described in section II of this 
preamble.
3. Description and Estimate of the Number of Small Entities
    FAA used the definition of small entities in the RFA for this 
analysis. The RFA defines small entities as small businesses, small 
governmental jurisdictions, or small organizations. In 5 U.S.C. 601(3), 
the RFA defines ``small business'' to have the same meaning as ``small 
business concern'' under Sec.  3 of the Small Business Act. The Small 
Business Act authorizes the Small Business Administration (SBA) to 
define ``small business'' by issuing regulations.
    SBA has established size standards for various types of economic 
activities, or industries, under the North American Industry 
Classification System (NAICS). These size standards generally define 
small businesses based on the number of employees or annual receipts. 
Table 15 shows the SBA size standards for example industrial 
classification codes relevant for the proposed rule. Note that the SBA 
definition of a small business applies to the parent company and all 
affiliates as a single entity.

        Table 15--Small Business Size Standards: BVLOS Operations
------------------------------------------------------------------------
       NAICS code              Description            Size standard
------------------------------------------------------------------------
Exemptions:
    336411..............  Aircraft               1,500 employees.
                           Manufacturing.
    334511..............  Search, Detection,     1,350 employees.
                           Navigation,
                           Guidance,
                           Aeronautical, and
                           Nautical System and
                           Instrument
                           Manufacturing.
    481111..............  Scheduled Passenger    1,500 employees.
                           Air Transportation.
    481211..............  Nonscheduled           1,500 employees.
                           Chartered Passenger
                           Air Transportation.
    482111..............  Line Haul Railroads..  1,500 employees.
    492110..............  Couriers and Express   1,500 employees.
                           Delivery Services.
    459999..............  All Other              $11.5 million.
                           Miscellaneous
                           Retailers.
    541370..............  Surveying and Mapping  $19.0 million.
                           (except Geophysical)
                           Services.
Waivers: \1\
    221210..............  Natural Gas            1,150 employees.
                           Distribution.
    236115..............  New Single-family      $45.0 million.
                           Housing Construction
                           (Except For-Sale
                           Builders).
    327211..............  Flat Glass             1,100 employees.
                           Manufacturing.
    333111..............  Farm Machinery and     1,250 employees.
                           Equipment
                           Manufacturing.
    334511..............  Search, Detection,     1,350 employees.
                           Navigation,
                           Guidance,
                           Aeronautical, and
                           Nautical System and
                           Instrument
                           Manufacturing.
    334516..............  Analytical Laboratory  1,000 employees.
                           Instrument
                           Manufacturing.
    336411..............  Aircraft               1,500 employees.
                           Manufacturing.
    423990..............  Other Miscellaneous    100 employees.
                           Durable Goods
                           Merchant Wholesalers.
    481219..............  Other Nonscheduled     $25.0 million.
                           Air Transportation.
    512110..............  Motion Picture and     $40.0 million.
                           Video Production.
    513120..............  Periodical Publishers  1,000 employees.
    541330..............  Engineering Services.  $25.5 million.
    541370..............  Surveying and Mapping  $19.0 million.
                           (except Geophysical)
                           Services.
    541519..............  Other Computer         $34.0 million.
                           Related Services.
    541990..............  All Other              $19.5 million.
                           Professional,
                           Scientific and
                           Technical Services.
    611310..............  Colleges,              $34.5 million.
                           Universities and
                           Professional Schools.
    711219..............  Other Spectator        $16.5 million.
                           Sports.
------------------------------------------------------------------------
NAICS = North American Industrial Classification System.
\1\ Based on a sample of 25 waivers.


[[Page 38354]]

    Under exemptions, FAA identified three entities that may be small 
operators (one of which is also a manufacturer, and two of which also 
operate under a waiver). Under waivers, to estimate the number of small 
entities, FAA examined 51 randomly selected waivers to obtain a sample 
of 25 entities for which business data could be obtained.\250\ Of the 
51 waivers examined, 12 represent individuals, 3 represent government 
entities, 11 represent entities under the SBA for which no data could 
be obtained, and 25 represented entities under the SBA for which NAICS 
and information to compare to the size standard could be determined. Of 
the sample of 25, 72 percent (18 entities) represent small entities 
under the SBA. If this ratio holds for the whole population of 232 
among waivers and exemptions, 166 would be small entities (72 percent x 
229 waivers = 165 + 1 unique small entity under an exemption = 166).
---------------------------------------------------------------------------

    \250\ FAA used the following process: first, it assigned each 
entry a random value using the RAND function in Excel and sorted by 
the random value. It then examined each entry in sequence and 
removed individuals and governmental entities. For remaining 
entries, a Google search of NAICS code, revenue and employee count 
data was performed. If any of these data could not be found, the 
entry was discarded. If the data could be found, the entry was 
included in the sample. This process was repeated until 25 entries 
were added to the sample.
---------------------------------------------------------------------------

    As described in section XIV.A, approximately 30 U.S.-based 
manufacturers may be affected by proposed rule (table 16 shows the SBA 
size standards for the manufacturers). FAA used a similar process as 
for waivers (see footnote 30) to obtain data for a sample of 15. Five 
manufacturers are also operators under an exemption. Ten of the 
entities in the sample may be small businesses under the SBA. Thus, if 
this ratio holds for the population of manufacturers, a total of 20 
manufacturers (10 x 2) may be small businesses.

       Table 16--Small Business Size Standards: Manufacturers \1\
------------------------------------------------------------------------
       NAICS code              Description            Size standard
------------------------------------------------------------------------
333310..................  Commercial and         1,000 employees.
                           Service Industry
                           Machinery
                           Manufacturing.
335311..................  Power, Distribution    800 employees.
                           and Specialty
                           Transformer
                           Manufacturing.
336411..................  Aircraft               1,500 employees.
                           Manufacturing.
459999..................  All Other              $11.5 million.
                           Miscellaneous
                           Retailers.
518210..................  Computing              $40 million.
                           Infrastructure
                           Providers, Data
                           Processing, Web
                           Hosting, and Related
                           Services.
541370..................  Surveying and Mapping  $19 million.
                           (except Geophysical)
                           Services.
541512..................  Computer Systems       $34 million.
                           Design Services.
541513..................  Computer Facilities    $37 million.
                           Management Services.
541715..................  Research and           1,000 employees.
                           Development in the
                           Physical,
                           Engineering, and
                           Life Sciences
                           (except
                           Nanotechnology and
                           Biotechnology) 11.
------------------------------------------------------------------------
NAICS = North American Industrial Classification System.
\1\ Based on a sample of 15 manufacturers.

    No entities are currently operating as an automated data service 
provider, as the rules defining an automated data service provider do 
not currently exist.
4. Projected Reporting, Recordkeeping and Other Compliance 
Requirements,
    Section XIV.E, of this preamble details the recordkeeping and 
reporting requirements of proposed rule. Section XIV.A discusses other 
compliance requirements and costs. For this analysis, if FAA assumes 
that all entities are certificated, they will incur costs from updating 
their operator manual and from implementing SMS. FAA uses the highest 
costs for both these categories, as shown in table 17.

          Table 17--Screening-Level Compliance Costs: Operators
------------------------------------------------------------------------
                                                                   Cost
                          Requirement                              \1\
------------------------------------------------------------------------
Operations manual updates......................................   $1,850
SMS............................................................   42,580
                                                                --------
  Total........................................................   44,430
------------------------------------------------------------------------
\1\ See table 12 for details.

    Under these costs, only 12 percent of entities could face costs 
greater than 2 percent of estimated revenues. These are all small 
entities. Extrapolating to the whole population, and including 
exemptions, FAA would estimate that 28 small entities could face costs 
greater than 2 percent of revenues. However, this method assumes all 
operators will be certificated. The intent of the rule is to allow 
smaller operations to conduct business under a permit, which does not 
involve SMS costs. These small entities are likely to qualify for a 
permit, and thus are unlikely to be required to meet the certificated 
requirements. Furthermore, it is unlikely that an entity would choose 
to obtain a certification if they would face significant adverse 
impacts. Thus, FAA relies on permitted costs.
    Under the cost for a permit rather than a certificate, entities 
would face only the operations manual update cost. Under these costs, 
no entities would face costs greater than 2 percent of estimated annual 
revenue. Thus, FAA estimates that, among operators, small entities will 
not face significant adverse impacts under proposed rule.
    Manufacturers face costs as described in section XIV.A.3. As 
described in table 10, the only cost which can be estimated is the data 
storage cost, which is estimated to be $6,000 per year per 
manufacturer. Under this estimate, no manufacturers would face costs 
greater than 2 percent of estimated annual revenue. This includes 
manufacturers that are also operators, which face the $6,000 data 
storage cost as well as the $44,430 certificated operator costs 
described in table 11.
    There are not any currently operating automated data service 
providers. Because no entities are currently operating as automated 
data service providers, no extant entities would be required to comply 
with this rule. As such, any entity that opts to become an automated 
data service provider will have done so because it perceives the 
benefit to be greater than the cost. Nonetheless, entities will need 
the services of an automated data service provider to operate in 
certain locations and over certain population densities under proposed 
rule. However, the costs and potential impacts from use of third-party 
automated data service providers cannot be determined until a market 
for such services develops.
5. All Federal Rules That May Duplicate, Overlap, or Conflict
    There are no relevant Federal rules that may duplicate, overlap, or 
conflict with proposed rule.

[[Page 38355]]

6. Significant Alternatives Considered
    As described in section X.A, FAA considered an alternative for 
determining UA airworthiness based on existing part 21 procedures to 
enable BVLOS operations under part 108. Section X.A describes the 
alternative and rationale for the approach in proposed rule. Proposed 
rule approach may also lessen any adverse impacts on small 
manufacturers. As described in section XIV.A.5, FAA considered 
requiring package delivery operators to obtain an air carrier 
certificate under part 119, and as described in section VII.A, FAA 
considered requiring personnel certification. In comparison to these 
alternatives, proposed approach may lessen any adverse impacts on small 
operators. FAA also considered two alternatives to proposed 
requirements for automated data service providers. These alternatives, 
and the rationale for selecting proposed rule, are described in section 
XIII.

C. International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the 
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal 
agencies from establishing standards or engaging in related activities 
that create unnecessary obstacles to the foreign commerce of the United 
States. Pursuant to these Acts, the establishment of standards is not 
considered an unnecessary obstacle to the foreign commerce of the 
United States, so long as the standard has a legitimate domestic 
objective, such as the protection of safety and does not operate in a 
manner that excludes imports that meet this objective. The statute also 
requires consideration of international standards and, where 
appropriate, that they be the basis for U.S. standards.
    FAA and TSA recognize that many other countries have adopted 
standards with regard to UAS manufacture, operation, and provisioning 
of automated data services in their respective airspace that may or may 
not align with this new framework. FAA will leverage Bilateral Aviation 
Safety Agreements, or equivalent agreements, to acknowledge 
commensurate standards that enable foreign commerce and reduce 
unnecessary obstacles. FAA and TSA invite comments on this approach and 
any additional information that would support future alignment.

D. Unfunded Mandates Assessment

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
governs the issuance of Federal regulations that require unfunded 
mandates. An unfunded mandate is a regulation that requires a State, 
local, or Tribal government or the private sector to incur direct costs 
without the Federal government having first provided the funds to pay 
those costs. FAA determined that proposed rule will not result in the 
expenditure of $187,000,000 or more ($100,000,000 adjusted for 
inflation using the most current Implicit Price Deflator for the Gross 
Domestic Product) by State, local, or Tribal governments, in the 
aggregate, or the private sector, in any one year.

E. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that agencies consider the impact of paperwork and other information 
collection burdens imposed on the public. According to the 1995 
amendments to the Paperwork Reduction Act (5 CFR 1320.8(b)(2)(vi)), an 
agency may not collect or sponsor the collection of information, nor 
may it impose an information collection requirement unless it displays 
a currently valid Office of Management and Budget (OMB) control number.
    This action contains the following proposed amendments to the 
existing information collection requirements previously approved under 
OMB Control Numbers 2120-0663, Service Difficulty Reports, and 2120-
0705, Hazardous Materials Program Requirements. As required by the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), FAA has submitted 
these proposed information collection amendments to OMB for its review.
    This action contains the following new information collection 
requirements; (1) for part 108 MOC and DOC (OMB Control Number 2120-
XXXX), (2) part 108 operators (OMB Control Number 2120-XXXX), and (3) 
for automated data service providers certificated under part 146 (OMB 
Control Number 2120-XXXX). As required by the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3507(d)), FAA has submitted these new proposed 
information collections to OMB for its review.
1. Part 108 Permitted and Certificated Operators
    Summary: This collection includes application and ongoing burdens 
for both permitted and certificated operators. Unless otherwise 
specified, burdens under subparts A, B, C, and F apply to both 
permitted and certificated operators. Burdens under subpart D apply 
only to permitted operators (or applicants thereof). Burdens under 
subpart E apply only to certificated operators (or applicants thereof). 
DOT requests that this information collection approval include all 
information that is either required to be reported, kept as record, or 
disclosed for any operator operating under part 108. This collection 
would also be used in instances where an operator is seeking 
authorization to deviate from certain regulations where available 
pursuant to the regulatory text.
    Use: These collections will be used to permit or certificate 
operators safely and to provide adequate oversight to promote safety 
assurance.
    Respondents (including number of): Permitted and certificated 
operators under part 108. FAA estimates there be over 200 operators 
within the first three years after part 108 goes into effect.
    Frequency: Permit applications are to be submitted every 24 months. 
Certificate applications are one-time collections that remain valid so 
long as the operator maintains currency. Ongoing recordkeeping, 
disclosing, and most reporting requirements are to be provided as 
needed. Reporting requirements under Sec. Sec.  108.45(a) and (b) are 
to be provided to FAA once every 12 months. Information provided to 
obtain an authorization to deviate from any operating regulation which 
permits such a deviation would be provided on an ad hoc basis.
    Annual Burden Estimate: FAA estimates that complying with the 
reporting, recordkeeping, and disclosing requirements to be imposed on 
permitted and certificated operators under proposed part 108 will cost 
annually, on average, $1,013,479 in wages during each of the first 
three years of the rule's effectiveness.\251\ In cases where 
authorization to deviate is sought, FAA estimates that such

[[Page 38356]]

application for authorization would take one (1) hour.
---------------------------------------------------------------------------

    \251\ FAA estimated labor burdens as follows: for general 
recordkeeping and reporting tasks, FAA used Bureau of Labor 
Statistics (BLS) wage rate data for ``Aircraft Mechanics and Service 
Technicians'', job series 49-3011 (estimated nominal wage rate of 
$36.66 per hour with a load factor of 1.51 to account for benefits) 
available at www.bls.gov/oes/current/oes_nat.htm; for tasks 
requiring legal expertise, FAA used BLS data on ``Lawyers'', job 
series 23-1011, in the Management of Companies and Enterprises 
industry (estimated nominal wage rate of $114.12 per hour with a 
load factor of 1.51 to account for benefits) available at 
www.bls.gov/oes/current/oes231011.htm; for expertise on training 
programs, FAA used BLS data on commercial pilots, job series 53-2012 
(estimated nominal wage rate of $66.35 per hour with a load factor 
of 1.51 to account for benefits) available at www.bls.gov/oes/current/oes532012.htm.
---------------------------------------------------------------------------

2. Part 108 Means of Compliance and Declaration of Compliance
    Summary: This information collection includes collections that are 
required by FAA for voluntary consensus standards bodies proposing a 
means of compliance for UAS that can operate under part 108, as well as 
manufacturers of UAS that can operate under part 108 manufactured to 
standards set by an accepted or approved MOC and manufactured pursuant 
to a DOC. The purpose of this collection of information is to help FAA 
ensure that UAS operated under part 108 meet the minimum performance 
requirements of proposed rule. The MOC and DOC concepts are critical 
components of the framework of proposed rule to ensure UAS meet the 
performance-based requirements for BVLOS operations.
    Use: This collection will be used to collect standards to be used 
as a MOC for part 108 UAS manufacturers, if accepted or approved by 
FAA. This collection will also be used to collect information and 
artifacts for DOC in accordance with a MOC that will be submitted by 
the UAS manufacturers. This collection will also be used for additional 
disclosing, recordkeeping, and reporting requirements that are imposed 
on manufacturers of the UAS that has received airworthiness acceptance.
    Respondents (including number of): Respondents to this collection 
for the MOC will be voluntary consensus standards bodies. Respondents 
for DOC (and any additional paperwork burdens on manufacturers) will be 
manufacturers of UAS that are designed and built to operate under part 
108. There are 35 elements that would require a MOC in subparts G and H 
of proposed rule. There will need to be at least one FAA-accepted (or 
FAA-approved) MOC for each of these 35 elements. Therefore, FAA 
estimates at least 35 MOC will be approved within the first three years 
upon part 108 going into effect. There will be ongoing burdens on 
manufacturers of the UAS that have received airworthiness acceptance; 
FAA anticipates that there will be approximately 30 manufacturers that 
produce at least one UAS manufactured under a DOC and thus charged with 
the associated ongoing paperwork reduction act burdens.
    Frequency: Collections are required on an ``as needed'' basis. It 
is envisioned that submissions for MOC approval will occur as needed as 
voluntary consensus standards bodies develop adequate standards ready 
for approval by FAA. Each individual UA manufactured in accordance with 
a MOC requires its own DOC, but submissions will be ``one-time'' for 
each DOC. To mitigate excess burden caused by repetitive submissions, 
submissions for DOCs can be made in batches of up to 500 aircraft at a 
time. Under Sec.  108.760, all supporting documentation for the DOC 
must be retained by the manufacturer for two (2) years following the 
cessation of support for the COS of the UAS listed on the DOC. If the 
manufacturer makes any design changes, they must demonstrate that those 
design changes demonstrate compliance with the MOC under Sec.  
108.750(b). Flight data required to be kept as record under Sec.  
108.725 shall be kept by the manufacturer of the UAS that has received 
airworthiness acceptance for a minimum of two (2) years.
    Annual Burden Estimate: 241 hours annually (on average), and 
$226,591 annually from costs (including labor).\252\
---------------------------------------------------------------------------

    \252\ FAA estimated labor burdens using BLS statistics including 
rates for Aerospace Engineering Operations Technologists and 
Technicians, job series 17-3021 and 17-2011 (estimated wage rate of 
$39.08 per hour with a load factor of 1.51 to account for benefits 
for an aeronautical technician for general tasks and estimated wage 
rate of $64.74 per hour with a load factor of 1.51 for an 
aeronautical engineer for tasks requiring engineering subject matter 
expertise) available at www.bls.gov/oes/current/oes_nat.htm.
---------------------------------------------------------------------------

3. Part 146 Automated Data Service Providers
    Summary: Proposed part 146 provides a regulatory framework for 
appropriate government oversight of automated data services that 
support aircraft operations. DOT requests this information collection 
approval include all information that is either required to be 
reported, kept as record, or disclosed by any automated data service 
provider. This includes the information that a service provider must 
submit to FAA to become authorized and certificated. This also includes 
information that the service provider must provide to FAA on an ongoing 
or as-needed basis, and disclosures to their user base.
    Use: These collections will be used to authorize and certify 
automated data service providers and provide adequate oversight of 
these services to promote safety assurance.
    Respondents (including number of): Respondents for this collection 
are the automated data service providers. FAA cannot estimate without 
speculating the number of automated data service providers that will 
enter this market.
    Frequency: Authorization and certification are one-time 
collections. Reporting requirements are as-needed.
    Annual Burden Estimate: FAA estimates the paperwork burden on 
service providers to be commensurate with the service level they are 
offering--service suppliers with offerings in higher service levels are 
required to provide more information to FAA as part of their 
applications, and therefore are estimated to have larger paperwork 
burdens.\253\ FAA estimates that Service Level 1 service providers will 
have a burden of (approximately) $365 in their first year to obtain 
their certificate and first service authorization. FAA estimates that 
Service Level 2 service providers will have a burden of (approximately) 
$800 in their first year to obtain their certificate and first service 
authorization. FAA estimates that Service Level 3 service providers 
will have a burden of (approximately) $1,824 in their first year to 
obtain their certificate and first service authorization. These would 
be one-time expenses; obtaining additional authorizations to offer 
additional services would also have one-time costs that would be in 
line with the costs for the first authorization and would also be 
dependent on service level. However, for simplicity, the PRA analysis 
assumes 1 service authorization per entity. FAA estimates that data 
exchange and recordkeeping requirements for service providers of any 
service level will cost approximately $6,000 per year to account for 
data storage.\254\ FAA estimates a de minimis net burden for required 
notifications to customers, such as alerting a service provider's 
customer base of a software update, noting that these are already 
customary and usual business practices.
---------------------------------------------------------------------------

    \253\ FAA estimated labor burdens using BLS statistics including 
rates for Project Management Specialist within ``Executive 
Secretaries and Executive Administrative Assistants'', job series 
43-6011, in the Computing Infrastructure Providers, Data Processing, 
Web Hosting, and Related Services industry group (estimated nominal 
wage rate of $55.74 per hour and a load factor of 1.51 to account 
for benefits) available at www.bls.gov/oes/current/oes436011.htm.
    \254\ See, e.g., https://www.liquidweb.com/products/dedicated/.
---------------------------------------------------------------------------

4. Hazardous Materials Program Requirements (OMB Control No. 2120-0705)
    Summary: This current OMB Control Number accounts for the 
information collected from 14 CFR part 121, 135, and 145 operators 
associated with hazardous materials-specific regulatory requirements. 
This includes information collection from hazardous materials 
procedures and information, training programs, and notification 
requirements. Proposed part 108 includes similar requirements for part

[[Page 38357]]

108 permitted and certificated package delivery operators to be 
included in this collection.
    Use: This collection is used to authorize, certify, and ensure 
compliance with hazardous materials-specific requirements associated 
with proposed part 108 operators and existing part 121, 135, and 145 
operators.
    Respondents (including number of): Respondents for this collection 
are proposed part 108 operators and existing part 121, 135, and 145 
operators. FAA does not estimate an increase in total respondents. 
While FAA estimates an increase in part 108 certificated package 
delivery operator respondents, this increase is offset by a subsequent 
decrease in part 135 certificate holder respondents. In addition, FAA 
does not currently estimate any part 108 permitted package delivery 
operators but still accounts for these respondents to allow for an 
increase as new entrants emerge.
    Frequency: Certificate applications are one-time collections that 
remain valid so long as the operator maintains currency but are 
submitted for additional review with any change. Training reporting and 
recordkeeping are created and updated initially and every 24 months 
following employee recurrent training.
    Increase in Annual Burden Estimate: FAA estimates an overall 
increase of two (2) annual burden hours. The increase accounts for 
proposed requirement in Sec.  108.570(l) for a part 108 certificated 
package delivery operator to develop and submit an SRA as a part of the 
will-carry Sec.  108.570(a) authorizations. The other proposed 
increases in annual burden for part 108 certificated package delivery 
operators are offset by the subsequent decrease in annual burden for 
part 135 certificate holders. In addition, there is no annual burden 
estimated for part 108 permitted package delivery operators because FAA 
does not estimate any part 108 permitted package delivery operator 
respondents.\255\ However, FAA will account any annual burden for part 
108 permitted package delivery operators as new entrants emerge.
---------------------------------------------------------------------------

    \255\ FAA would estimate the increased burden using BLS data 
Occupational Employment and Wages, May 2023. Cargo and Freight 
Agents NAICS Code 43-5011 available at www.bls.gov/oes/current/oes435011.htm. Hourly wage rate is $25.22. For private industry, BLS 
data shows that 34% of compensation is from benefits available at 
www.bls.gov/news.release/ecec.t04.htm#ect_table4.f.1. Therefore, to 
account for benefits: $25.22 * 1.34 = $33.79.
---------------------------------------------------------------------------

5. Service Difficulty Reports (OMB Control No. 2120-0663)
    Summary: This current OMB Control Number accounts for the 
information collected as part of a service difficulty report. Under 
proposed Sec.  108.45(d), certificated operators would have to report 
to the unmanned aircraft manufacturer any failure, malfunction, or 
defect in an unmanned aircraft system that causes momentary or 
permanent loss of control or communication of the unmanned aircraft if 
it has endangered, or may endanger, the safe operation of the unmanned 
aircraft.
    Use: Under the existing Information Collection Number 2120-0663, 
service difficulty report information is collected, collated by FAA, 
and used to determine service performance of aeronautical products. 
Regulations calling for the submission of Service Difficulty Reports 
enhance air safety by collecting additional and timelier data pertinent 
to critical aircraft or aeronautical components. Under proposed rule, 
this information would be directly reported to the manufacturer (and 
not FAA) so that the manufacturer can address this critical user 
feedback without delay and analyze the service performance of their own 
aeronautical products.
    Respondents (including number of): Respondents for this collection 
are proposed part 108 certificated operators, in addition to those 
respondents already accounted for in OMB Information Collection Number 
2120-0663.
    Frequency: Service difficulty reports would be submitted on an as-
needed basis.
    Increase in Annual Burden Estimate: Information collection Number 
2120-0663 estimates that each service difficulty report takes .667 
hours to produce and submit. FAA believes that this a good estimate of 
the time that it would take for the service difficulty reports required 
under proposed Sec.  108.45(d). This proposed regulation only applies 
to certificated operators, not permitted operators, and FAA does not 
have the information needed to estimate the number of certificated 
operators, nor the information to estimate the number of service 
difficulty reports that would be submitted by that pool of respondents 
each year for the first three years of the rule. For these reasons, FAA 
cannot yet estimate the total increase in burden.
    FAA is soliciting comments to--
    (1) Evaluate whether proposed information requirement is necessary 
for the proper performance of the functions of FAA, including whether 
the information will have practical utility;
    (2) Evaluate the accuracy of FAA's estimate of the burden;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of collecting information on those who are 
to respond, including by using appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Individuals and organizations may send comments on the information 
collection requirement to the address listed in the ADDRESSES section 
at the beginning of this preamble by [INSERT DATE XX DAYS AFTER 
PUBLICATION IN THE Federal Register]. Comments also should be submitted 
to the OMB, Office of Information and Regulatory Affairs, Attention: 
Desk Officer for FAA, New Executive Office Building, Room 10202, 725 
17th Street NW, Washington, DC 20053.

F. International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to ICAO SARPS 
to the maximum extent practicable. FAA has reviewed the corresponding 
ICAO SARPS and has identified no differences with these proposed 
regulations.

G. Environmental Analysis

    FAA Order 1050.1F identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act (NEPA) in the absence of extraordinary circumstances. FAA has 
determined this rulemaking action qualifies for the categorical 
exclusion identified in paragraph 5-6.6f for regulations and involves 
no extraordinary circumstances because it is in an NPRM. TSA has 
concluded that this action is covered by categorical exclusion number 
A3(a) and (d) in DHS Instruction Manual 023-01-001-01, Revision 01, 
Implementation of the National Environmental Policy Act (NEPA), which 
guides TSA compliance with NEPA.

H. Regulations Affecting Intrastate Aviation in Alaska

    Section 1205 of FAA Reauthorization Act of 1996 (110 Stat. 3213) 
requires the Administrator, when modifying 14 CFR regulations in a 
manner affecting intrastate aviation in Alaska, to consider the extent 
to which Alaska is not served by transportation modes other than

[[Page 38358]]

aviation, and to establish appropriate regulatory distinctions. Because 
this proposed rule would apply to UAS operations for various 
applications expected in Alaska (e.g., aerial surveying, civic 
interest, etc.), it could, if adopted, affect intrastate aviation in 
Alaska. FAA, therefore, specifically requests comments on whether there 
is justification for applying proposed rule differently in intrastate 
operations in Alaska.

XV. Executive Order Determinations

A. Executive Order 13132, Federalism

    FAA and TSA have analyzed this proposed rule under the principles 
and criteria of Executive Order 13132, Federalism. FAA and TSA have 
determined that this action would not have a substantial direct effect 
on the States, or the relationship between the Federal Government and 
the States, or on the distribution of power and responsibilities among 
the various levels of government, and, therefore, would not have 
federalism implications.

B. Executive Order 13175, Consultation and Coordination With Indian 
Tribal Governments

    Consistent with Executive Order 13175, Consultation and 
Coordination with Indian Tribal Governments,\256\ and FAA Order 
1210.20, American Indian and Alaska Native Tribal Consultation Policy 
and Procedures,\257\ FAA ensures that Federally Recognized Tribes 
(Tribes) are given the opportunity to provide meaningful and timely 
input regarding proposed Federal actions that have the potential to 
affect uniquely or significantly their respective Tribes. At this 
point, FAA has not identified any unique or significant effects, 
environmental or otherwise, on Tribes resulting from this proposed 
rule.
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    \256\ 65 FR 67249 (Nov. 6, 2000).
    \257\ FAA Order No. 1210.20 (Jan. 28, 2004), www.faa.gov/documentLibrary/media/1210.pdf.
---------------------------------------------------------------------------

C. Executive Order 13211, Regulations That Significantly Affect Energy 
Supply, Distribution, or Use

    FAA and TSA analyzed this proposed rule under Executive Order 
13211, Actions Concerning Regulations that Significantly Affect Energy 
Supply, Distribution, or Use. FAA and TSA have determined that it would 
not be a ``significant energy action'' under the Executive Order and 
would not be likely to have a significant adverse effect on the supply, 
distribution, or use of energy.

D. Executive Order 13609, Promoting International Regulatory 
Cooperation

    Executive Order 13609, Promoting International Regulatory 
Cooperation, promotes international regulatory cooperation to meet 
shared challenges involving health, safety, labor, security, 
environmental, and other issues and to reduce, eliminate, or prevent 
unnecessary differences in regulatory requirements. FAA and TSA have 
analyzed this action under the policies and agency responsibilities of 
Executive Order 13609 and have determined that this action would have 
no effect on international regulatory cooperation.

E. Executive Order 14192, Unleashing Prosperity Through Deregulation

    This proposed rule, if finalized as proposed, is expected to be an 
E.O. 14192 deregulatory action as it is an enabling rule.

XVI. Incorporation by Reference

    This NPRM proposes to incorporate by reference the final version of 
FAA Order JO 7400.[XX], currently available in draft form. A detailed 
discussion of the Order is located in section VI of this preamble. 
During the comment period of this NPRM, FAA Order JO 7400.XX, the draft 
of FAA Order JO 7400.[XX] will be posted in the public docket for this 
rulemaking at https://www.regulations.gov/.
    In addition, ANSI/CTA-2063-A, which appears Sec.  89.505 in the 
proposed amendatory text of this document, was previously approved for 
that section. No change is proposed to the incorporation by reference 
(IBR) material.

XVII. Privacy

    With regard to the information persons may submit in accordance 
with this proposed rule's requirements, FAA conducted a privacy impact 
assessment (PIA) under section 522(a)(5) of division H of the FY 2005 
Omnibus Appropriations Act, Public Law 108-447, 118 Stat. 3268 (Dec. 8, 
2004) and section 208 of the E-Government Act of 2002, Public Law 107-
347, 116 Stat. 2889 (Dec. 17, 2002). The PIA found that proposed 
regulatory requirements that affect privacy include: Application 
information, training, and personnel information, UAS ownership data, 
and UAS location data.
    As part of the PIA, FAA analyzed the effect this proposed rule 
might have on collecting, storing, and disseminating personally 
identifiable information of the public and UAS operators. FAA also 
examined and evaluated protections and alternative information-handling 
processes in developing proposed rule to mitigate potential privacy 
risks. A copy of the draft PIA is posted in the docket for this 
rulemaking.\258\
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    \258\ Upon finalization, PIAs are posted on the Department of 
Transportation's Privacy Program page, available at 
www.transportation.gov/individuals/privacy/privacy-impact-assessments#Federal%20Aviation%20Administration%20(FAA).
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    Any vetting conducted by TSA and the security threat assessments 
proposed in this NPRM are covered by a current Department of Homeland 
Security system of records titled, ``Department of Homeland Security/
Transportation Security Administration--002 Transportation Security 
Threat Assessment System of Records.'' This system of records allows 
TSA to collect and maintain records related to security threat 
assessments, employment investigations, and evaluations that TSA 
conducts on certain individuals for security purposes. For example, 
individuals who apply for a Transportation Worker Identification 
Credential or a Hazardous Materials Endorsement must undergo a security 
threat assessment, and records associated with the assessment are 
covered by this system.

XVIII. Additional Information

A. Comments Invited

    FAA is managing the docket for this rulemaking. FAA and TSA invite 
interested persons to participate in this rulemaking by submitting 
written comments, data, or views. The most helpful comments reference a 
specific portion of the proposal, explain the reason for any 
recommended change, and include supporting data. To ensure the docket 
does not contain duplicate comments, commenters should submit only one 
time if comments are filed electronically, or commenters should send 
only one copy of written comments if comments are filed in writing.
    FAA will file in the docket all comments it receives, as well as a 
report summarizing each substantive public contact with FAA personnel 
concerning this proposed rulemaking. Before acting on this proposal, 
FAA and TSA will consider all comments they receive on or before the 
closing date for comments. FAA and TSA will consider comments filed 
after the comment period has closed if it is possible to do so without 
incurring expense or delay. FAA and TSA may change this proposal in 
light of the comments it receives.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments 
from the public to better inform its rulemaking process. DOT posts 
these comments, without edit, including any personal

[[Page 38359]]

information the commenter provides, to https://www.regulations.gov, as 
described in the system of records notice (DOT/ALL-14 FDMS), which can 
be reviewed at https://www.dot.gov/privacy.

B. Confidential Business Information and Sensitive Security Information 
(SSI)

    Confidential Business Information (CBI) is commercial or financial 
information that is both customarily and actually treated as private by 
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), 
CBI is exempt from public disclosure. If your comments responsive to 
this preamble contain commercial or financial information that is 
customarily treated as private, that you actually treat as private, and 
that is relevant or responsive to this preamble, it is important that 
you clearly designate the submitted comments as CBI. Please mark each 
page of your submission containing CBI as ``PROPIN.'' FAA will treat 
such marked submissions as confidential under the FOIA, and they will 
not be placed in the public docket of this preamble. Submissions 
containing CBI should be sent to the person in the FOR FURTHER 
INFORMATION CONTACT section of this document. Any commentary that FAA 
receives which is not specifically designated as CBI will be placed in 
the public docket for this rulemaking.
    Comments containing sensitive security information should be 
appropriately marked as containing such information and submitted by 
mail to the address listed in the FOR FURTHER INFORMATION CONTACT 
section. FAA will not place comments containing SSI in the public 
docket and will handle them with applicable safeguards and restrictions 
on access.

C. Electronic Access and Filing

    A copy of this preamble, all comments received, any final rule, and 
all background material may be viewed online at https://www.regulations.gov using the docket number listed above. A copy of 
this proposed rule will be placed in the docket. Electronic retrieval 
help and guidelines are available on the website. It is available 24 
hours each day, 365 days each year. An electronic copy of this document 
may also be downloaded from the Office of the Federal Register's 
website at https://www.federalregister.gov and the Government 
Publishing Office's website at https://www.govinfo.gov. A copy may also 
be found at FAA's Regulations and Policies website at https://www.faa.gov/regulations_policies.
    Copies may also be obtained by sending a request to FAA, Office of 
Rulemaking, ARM-1, 800 Independence Avenue SW, Washington, DC 20591, or 
by calling (202) 267-9677. Commenters must identify the docket or 
notice number of this rulemaking.
    All documents FAA considered in developing this proposed rule, 
including economic analyses and technical reports, may be accessed in 
the electronic docket for this rulemaking.

D. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires FAA and TSA to comply with small entity requests for 
information or advice about compliance with statutes and regulations 
within its jurisdiction. A small entity with questions regarding this 
document may contact its local FAA official, or the person listed under 
the FOR FURTHER INFORMATION CONTACT heading at the beginning of the 
preamble. A small entity with questions for TSA may contact Craig 
Mosford, Industry Engagement Manager-Airports, Policy, Plans, and 
Engagement (PPE), Transportation Security Administration, at 
[email protected]. To find out more about SBREFA on the 
internet, visit https://www.faa.gov/regulations_policies/rulemaking/sbre_act/.

List of Subjects

14 CFR Part 36

    Agriculture, Aircraft, Noise control.

14 CFR Part 43

    Aircraft, Aviation safety, Maintenance, Preventive maintenance, 
Rebuilding, and Alteration, Reporting and recordkeeping requirements.

14 CFR Part 45

    Aircraft, Exports, Signs and symbols.

14 CFR Part 48

    Aircraft, Reporting and recordkeeping requirements, Signs and 
symbols.

14 CFR Part 89

    Incorporation by reference, Remote identification of unmanned 
aircraft, Reporting and recordkeeping requirements.

14 CFR Part 91

    Air traffic control, Aircraft, Airmen, Aviation safety, Reporting 
and recordkeeping requirements, Security measures.

14 CFR Part 107

    Aircraft, Airmen, Aviation safety, Incorporation by reference, 
Security measures.

14 CFR Part 108

    Aircraft, Airmen, Aviation safety, Incorporation by reference, 
Reporting and recordkeeping requirements, Security measures.

14 CFR Part 119

    Administrative practice and procedure, Air carriers, Aircraft, 
Aviation safety, Charter flights, Reporting and recordkeeping 
requirements.

14 CFR Part 133

    Aircraft, Aviation safety, Reporting and recordkeeping 
requirements.

14 CFR Part 135

    Aircraft, Airmen, Aviation safety, Reporting and recordkeeping 
requirements.

14 CFR Part 137

    Agriculture, Agricultural aircraft operations, Aircraft, Aviation 
safety, Reporting and recordkeeping requirements.

14 CFR Part 146

    Automated data service providers, Aviation safety, Computer 
technology, Data Exchange, Reporting and recordkeeping requirements.

49 CFR 1540

    Air carriers, Airports, Aviation safety, Law enforcement officers, 
Reporting and recordkeeping requirements, Security measures.

49 CFR 1544

    Air carriers, Aircraft, Airmen, Airports, Arms and munitions, 
Aviation safety, Explosives, Freight forwarders, Law enforcement 
officers, Reporting and recordkeeping requirements, Security measures.

The Proposed Amendment

    In consideration of the foregoing, FAA proposes to amend chapter I 
of title 14, Code of Federal Regulations, and TSA proposes to amend 
chapter XII of title 49, as follows:

Title 14--Aeronautics and Space

PART 36--NOISE STANDARDS: AIRCRAFT TYPE AND AIRWORTHINESS 
CERTIFICATION

0
1. The authority citation for part 36 continues to read as follows:

    Authority: 42 U.S.C. 4321 et seq.; 49 U.S.C. 106(g), 40113, 
44701-44702, 44704, 44715;

[[Page 38360]]

sec. 305, Pub. L. 96-193, 94 Stat. 50, 57; E.O. 11514, 35 FR 4247, 3 
CFR, 1966-1970 Comp., p. 902.

0
2. Add Sec.  36.0 to read as follows:


Sec.  36.0   Applicability; aircraft that do not conform to a type 
certificate.

    (a) General applicability. Except as provided in paragraph (e) of 
this section,
    (1) For an aircraft described in Sec.  21.190, Sec.  21.191, Sec.  
21.193(h), or part 22 of this chapter, that does not conform to a type 
certificate, the requirements of this part apply at the time of 
application for a first airworthiness certificate, or when an aircraft 
previously issued an airworthiness certificate incorporates an 
alteration that would result in an acoustical change.
    (2) For an aircraft described in part 108 of this chapter that does 
not conform to a type certificate, the requirements of this part apply 
at the time of application for an airworthiness acceptance.
    (b) Compliance requirements. Compliance with this part requires--
    (1) For an aircraft described in Sec.  21.190, Sec.  21.191, Sec.  
21.193(h), or part 22 of this chapter that does not conform to a type 
certificate,
    (i) A determination that the applicable noise limits specified in 
this part are not exceeded for any configuration, flight profile, or 
reference condition required for an aircraft to demonstrate compliance; 
and,
    (ii) When applicable, a determination that any test procedures and 
analyses contained in a related appendix to this part have been met for 
any configuration, flight profile, or reference condition required.
    (2) For aircraft described in part 108 of this chapter, the 
applicant, prior to submitting the declaration of compliance required 
in Sec.  108.715, must document that:
    (i) The applicable noise limits required by this part are not 
exceeded for any configuration, flight profile, or reference condition 
required for an aircraft to demonstrate compliance; and,
    (ii) When applicable, any test procedures and analyses contained in 
a related appendix to this part have been met for any configuration, 
flight profile, or reference condition required.
    (c) Use of a noise consensus standard. An aircraft that does not 
conform to a type certificate may demonstrate compliance using a noise 
consensus standard that meets the following conditions:
    (1) The noise consensus standard has been approved by FAA; and
    (2) The noise consensus standard has been determined by FAA to be 
appropriate for the aircraft and applicable to the aircraft's specific 
design.
    (d) No noise consensus standard available. For an aircraft that 
does not conform to a type certificate, and for which no noise 
consensus standard has been approved or determined by FAA to be 
appropriate for the aircraft, the following apply:
    (1) Aircraft similar to a type-certificated aircraft. An aircraft 
that is determined by FAA for noise purposes to be the same as or 
sufficiently similar in design to a type-certificated aircraft 
described in Sec.  36.1 may demonstrate compliance with this part by--
    (i) Using the same requirements as the type-certificated aircraft 
that is the same or sufficiently similar in design to the aircraft; or
    (ii) Adopting the noise levels for the type-certificated aircraft 
that is the same or sufficiently similar in design to the aircraft when 
the aircraft has not been altered to result in an acoustical change.
    (2) Aircraft with no similar type-certificated aircraft. If FAA 
determines that for noise purposes, there is no type-certificated 
aircraft of the same or sufficiently similar design described in Sec.  
36.1, an applicant may demonstrate compliance with this part using the 
noise requirements determined by FAA to be appropriate for the 
aircraft.
    (e) Exceptions. The following aircraft that do not conform to a 
type certificate are excepted from demonstrating compliance with the 
requirements of this part:
    (1) Aircraft issued an experimental airworthiness certificate in 
accordance with Sec.  21.191(a) through (h) or (k) of this chapter;
    (2) Aircraft which, if type-certificated, would not be required to 
demonstrate compliance with this part;
    (3) Aircraft issued an experimental airworthiness certificate in 
accordance with Sec.  21.191(i)(1) of this chapter on or before January 
31, 2008, for the purpose of operating a light-sport aircraft; and
    (4) Aircraft designed for agricultural unmanned aircraft operations 
under part 108 of this chapter that are issued an airworthiness 
acceptance for the purpose and exclusive use of agricultural aircraft 
operations.
0
3. Amend Sec.  36.1 by adding reserved paragraph (a)(6) and paragraph 
(a)(7) to read as follows:


Sec.  36.1   Applicability and definitions.

    (a) * * *
    (6) [Reserved]
    (7) Aircraft that do not conform to a type certificate, in 
accordance with Sec.  36.0.
* * * * *
0
4. Revise Sec.  36.3 to read as follows:


Sec.  36.3   Compatibility with airworthiness requirements.

    (a) Each applicant for certification under this part must 
demonstrate that:
    (1) For type certificated aircraft, that the aircraft complies with 
the airworthiness regulations in this chapter that constitute the type 
certification basis of the aircraft under all conditions in which 
compliance with this part is shown; or
    (2) For aircraft without a type certificate, that the aircraft 
complies with all airworthiness requirements in this chapter applicable 
to the design of the aircraft under all conditions in which compliance 
with this part is shown.
    (b) Each applicant for certification under this part must show that 
any procedure used to demonstrate compliance with this part, and any 
procedure and information for the flight crew developed under this 
part, are consistent with the requirements of paragraph (a)(1) or (2) 
of this section.
    (c) Each applicant for airworthiness acceptance under part 108 of 
this chapter must:
    (1) demonstrate that the aircraft complies with all airworthiness 
regulations in this chapter applicable to the design of the aircraft 
under all conditions in which compliance with this part is shown.
    (2) show that any procedure used to demonstrate compliance with 
this part, and any procedure and information for the operator developed 
under this part, are consistent with the requirements of paragraph 
(c)(1) of this section.
0
5. Amend Sec.  36.1501 by revising paragraph (a) to read as follows:


Sec.  [thinsp]36.1501   Procedures, noise levels and other information.

    (a) All procedures, weights, configurations, and other information 
or data employed for obtaining the certified noise levels prescribed by 
this part, including equivalent procedures used for flight, testing, 
and analysis, must be developed by the applicant and approved by FAA. 
For type certificated aircraft, noise levels achieved during type 
certification must be included in the aircraft's approved flight 
manual. For aircraft without a type certificate, noise levels achieved 
during airworthiness certification must be included in the Pilot's 
Operating Handbook. For aircraft subject to part 108 of this chapter, 
the noise levels declared during airworthiness acceptance must be 
included in the operating instructions.
* * * * *

[[Page 38361]]

0
6. Amend Sec.  36.1581 by adding paragraph (h) to read as follows:


Sec.  [thinsp]36.1581   Manuals, markings, and placards.

* * * * *
    (h) For aircraft subject to Sec.  36.0, no noise operating 
limitations are prescribed under this part, and this part does not 
affect any operating limitations for these aircraft described elsewhere 
in this chapter. Noise compliance with this part must be documented as 
specified in Sec.  21.190(e), Sec.  21.191, or Sec.  108.720 of this 
chapter, as applicable. The noise information must:
    (1) State that the aircraft has demonstrated compliance with this 
part;
    (2) Include the demonstrated noise levels of the aircraft; and
    (3) Include the following statement: No determination has been made 
by FAA whether the noise levels of this aircraft are or should be 
acceptable for operation in any location.

PART 43--MAINTENANCE, PREVENTIVE MAINTENANCE, REBUILDING, AND 
ALTERATION

0
7. The authority citation for part 43 continues to read as follows:

    Authority: 42 U.S.C. 7572; 49 U.S.C. 106(f), 106(g), 40105, 
40113, 44701-44702, 44704, 44707, 44709, 44711, 44713, 44715, 45303.

0
8. Amend Sec.  43.1 by adding paragraph (b)(4) to read as follows:


Sec.  43.1  Applicability.

* * * * *
    (b) * * *
    (4) Any aircraft that is operated under part 108 of this chapter.
* * * * *

PART 45--IDENTIFICATION AND REGISTRATION MARKING

0
9. The authority citation for part 45 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40103, 40113-40114, 44101-
44105, 44107-44111, 44504, 44701, 44708-44709, 44711-44713, 44725, 
45302-45303, 46104, 46304, 46306, 47122.

0
10. Amend Sec.  45.1 by adding paragraph (a)(4) to read as follows:


Sec.  45.1  Applicability.

* * * * *
    (a) * * *
    (4) a part 108 airworthiness acceptance.
* * * * *
0
11. Amend Sec.  45.10 by revising paragraph (a)(2) and adding paragraph 
(a)(3) to read as follows:


Sec.  45.10  Marking.

* * * * *
    (a) * * *
    (2) For export to the United States under the provisions of an 
agreement between the United States and another country or jurisdiction 
for the acceptance of products and articles; or
    (3) Under part 108, subpart G and H of this chapter; and
* * * * *
0
12. Amend Sec.  45.11 by adding paragraph (i) to read as follows:


Sec.  45.11  Marking of products.

* * * * *
    (i) Unmanned aircraft. A manufacturer of an unmanned aircraft 
complying with subparts G and H of part 108 of this chapter must mark 
each aircraft by attaching a fireproof identification plate that--
    (1) Includes the information specified in Sec.  [thinsp]45.13 using 
an approved method of fireproof marking;
    (2) Must be secured in such a manner that it will not likely be 
defaced or removed during normal service, or lost or destroyed by 
accident; and
    (3) Must be secured to the aircraft fuselage exterior so that it is 
legible and readable from the ground when the unmanned aircraft is not 
being operated.
0
13. Amend Sec.  45.13 by:
0
a. Revising paragraph (a) introductory text;
0
b. Redesignating paragraph (a)(8) as paragraph (a)(9), and
0
c. Adding a new paragraph (a)(8).
    The revision and addition read as follows:


Sec.  45.13  Identification data.

    (a) The identification required by Sec.  45.11 (a) through (c) and 
(i) must include the following information:
    * * *
    (8) Part 108 designation, if any.
* * * * *
0
14. Amend Sec.  45.29 by revising paragraph (b) introductory text and 
adding paragraph (b)(4) to read as follows:


Sec.  45.29  Size of marks.

* * * * *
    (b) Height. Except as provided in paragraph (h) of this section, 
the nationality and registration marks must be of equal height and on--
    * * *
    (4) Part 108 aircraft must be at least 12 inches high except that:
    (i) If the external surface is not large enough for 12-inch 
markings, marks must be at least 3 inches in height.
    (ii) If the size of an unmanned aircraft does not allow for 3-inch 
markings, marks as large as practicable shall be placed on the largest 
external surface.
* * * * *

PART 48--REGISTRATION AND MARKING REQUIREMENTS FOR SMALL UNMANNED 
AIRCRAFT

0
15. The authority citation for part 48 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40101, 40103, 40113-40114, 
41703, 44101-44103, 44105-44106, 44110-44113, 44809(f), 45302, 
45305, 46104, 46301, 46306.

0
16. Amend Sec.  48.1 by revising paragraph (c) to read as follows:


Sec.  48.1   Applicability.

* * * * *
    (c) Small unmanned aircraft intended to be operated under part 108 
of this chapter, issued an airworthiness certificate, operated outside 
of the territorial airspace of the United States, or registered through 
a trust or voting trust, must be registered in accordance with subparts 
A and B of part 47 of this chapter and satisfy the identification and 
registration marking requirements of subparts A and C of part 45 of 
this chapter.
0
17. Amend Sec.  48.110 by revising paragraph (a)(7) to read as follows:


Sec.  48.110   Application.

* * * * *
    (a)(7) For any unmanned aircraft equipped with a remote 
identification broadcast module, the serial number issued by the 
manufacturer of the remote identification broadcast module in 
accordance with the design and production requirements of part 89 of 
this chapter. An applicant may submit the serial number of more than 
one remote identification broadcast module as part of the application 
for aircraft registration under Sec.  48.105. The serial number of a 
remote identification broadcast module provided in this application 
must not be listed on more than one Certificate of Aircraft 
Registration at the same time unless the applicant information in 
paragraphs (a)(1) through (a)(4) of this section is the same.
* * * * *

PART 89--REMOTE IDENTIFICATION OF UNMANNED AIRCRAFT

0
18. The authority citation for part 89 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40101(d), 40103(b), 44701, 
44805, 44809(f); Section 2202 of Pub. L. 114-190, 130 Stat. 629.

0
19. Amend Sec.  89.305 by amending the introductory paragraph as 
follows:

[[Page 38362]]

Sec.  89.305  Minimum message elements broadcast by standard remote 
identification unmanned aircraft.

    Except as provided in Sec.  108.200 for operations conducted under 
part 108 of this chapter, a standard remote identification unmanned 
aircraft must be capable of broadcasting the following remote 
identification message elements:
* * * * *
0
20. Revise Sec.  89.505 to read as follows:


Sec.  89.505  Serial Numbers.

    Serial number required. No person may produce a standard remote 
identification unmanned aircraft under Sec.  89.510, Sec.  89.511, or 
Sec.  89.515 or a remote identification broadcast module under Sec.  
89.520, unless the producer assigns to the unmanned aircraft or remote 
identification broadcast module a serial number that complies with 
ANSI/CTA-2063-A. ANSI/CTA-2063-A, Small Unmanned Aerial Systems Serial 
Numbers (September 2019) is incorporated by reference into this section 
with the approval of the Director of the Office of the Federal Register 
under 5 U.S.C. 552(a) and 1 CFR part 51. All approved material is 
available for inspection at FAA's Office of Rulemaking (ARM-1), 800 
Independence Avenue SW, Washington, DC 20590 (telephone 202-267-9677) 
and is available from Consumer Technology Association (CTA), 1919 South 
Eads Street, Arlington, VA 22202, [email protected], 703-907-7600 or at 
https://www.cta.tech. It is also available for inspection at the 
National Archives and Records Administration (NARA). For information on 
the availability of this material at NARA, visit www.archives.gov/Federal-register/cfr/ibr-locations or email [email protected].
0
21. Add Sec.  89.511 to read as follows:


Sec.  89.511  Production requirements for unmanned aircraft produced 
under an airworthiness acceptance issued under part 108 of this 
chapter.

    No person may produce an unmanned aircraft for operation in the 
airspace of the United States under an airworthiness acceptance issued 
under part 108 of this chapter unless:
    (a) All applicable requirements of part 108 of this chapter are 
met; and
    (b) The unmanned aircraft is designed and produced to meet the 
minimum performance requirements for standard remote identification of 
unmanned aircraft established in Sec.  89.310 in accordance with an 
FAA-accepted means of compliance.
0
22. Amend Sec.  89.515 by amending the section heading and the lead-in 
paragraph as follows:


Sec.  89.515  Production requirements for unmanned aircraft without 
design approval or production approval issued under part 21 of this 
chapter or airworthiness acceptance under part 108 of this chapter.

    Except as provided in Sec.  89.510 and Sec.  89.511, after 
September 16, 2022, no person may produce an unmanned aircraft for 
operation in the airspace of the United States unless--
* * * * *

PART 91--GENERAL OPERATING AND FLIGHT RULES

0
23. The authority citation for part 91 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 40101, 40103, 40105, 40113, 40120, 
44101, 44111, 44701, 44704, 44709, 44711, 44712, 44715, 44716, 
44717, 44722, 46306, 46315, 46316, 46504, 46506-46507, 47122, 47508, 
47528-47531, 47534; Pub. L. 114-190, 130 Stat. 615 (49 U.S.C. 44703 
note); Sec. 828 of Pub. L. 118-63, 138 Stat. 1330 (49 U.S.C. 44703 
note); articles 12 and 29 of the Convention on International Civil 
Aviation (61 Stat. 1180), (126 Stat. 11).

0
24. Amend Sec.  91.1 by revising paragraph (a) and adding paragraph (g) 
to read as follows:


Sec.  91.1  Applicability.

    (a) Except as provided in paragraphs (b), (c), (e), (f), and (g) of 
this section and Sec. Sec.  91.701 and 91.703, this part prescribes 
rules governing the operation of aircraft within the United States, 
including the waters within 3 nautical miles of the U.S. coast.
* * * * *
    (g) Except as provided in Sec.  108.180 of this chapter, this part 
does not apply to any aircraft governed by part 108 of this chapter.
0
25. Amend Sec.  91.113 by adding paragraph (h) to read as follows:


Sec.  91.113  Right-of-way rules: Except water operations.

* * * * *
    (h) Unmanned aircraft. An unmanned aircraft conducting operations 
under part 108 of this chapter has the right-of-way over other aircraft 
in flight unless--
    (1) That aircraft is operating in a Category 5 population density 
area as described in Sec.  108.185 of this chapter;
    (2) That aircraft is operating in Class B or C airspace as 
described in Sec.  108.180(b) of this chapter;
    (3) That aircraft is departing from or arriving at an airport or 
heliport; or
    (4) That aircraft is equipped and broadcasting their aircraft's 
location using--
    (i) ADS-B Out equipment that meets the requirements of Sec.  
91.227; or
    (ii) electronic conspicuity equipment that meets the performance 
requirements of Sec.  108.195(a)(2)(ii) of this chapter.
0
26. Amend Sec.  91.225 by revising paragraph (f) to read as follows:


Sec.  91.225  Automatic Dependent Surveillance-Broadcast (ADS-B) Out 
equipment and use.

* * * * *
    (f) Except as prohibited in paragraph (h)(2) of this section, each 
person operating an aircraft equipped with ADS-B Out must operate this 
equipment in the transmit mode at all times unless--
    (1) Otherwise authorized by FAA when the aircraft is performing a 
sensitive government mission for national defense, homeland security, 
intelligence or law enforcement purposes and transmitting would 
compromise the operations security of the mission or pose a safety risk 
to the aircraft, crew, or people and property in the air or on the 
ground; or
    (2) Otherwise directed by ATC when transmitting would jeopardize 
the safe execution of air traffic control functions; or
    (3) The equipment is operated in accordance with Sec.  108.195 of 
this chapter and operated solely to meet the conspicuity requirements 
in Sec.  91.113(h)(2).

PART 107--SMALL UNMANNED AIRCRAFT SYSTEMS

0
27. The authority citation for part 107 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 40101 note, 40103(b), 44701(a)(5), 
46105(c), 46110, 44807.

0
28. Amend Sec.  107.1 by revising paragraphs (b)(3) and (4) and adding 
paragraphs (b)(5) and (6) to read as follows:


Sec.  107.1  Applicability.

* * * * *
    (b) * * *
    (3) Any operation that the holder of an exemption issued in 
conjunction with a determination under 49 U.S.C. 44807 elects to 
conduct pursuant to the exemption, unless otherwise specified in the 
exemption;
    (4) Any operation that a person elects to conduct under part 91 of 
this chapter with a small unmanned aircraft system;
    (5) Operation of unmanned aircraft systems beyond the visual line 
of sight of the operator; or
    (6) Carriage of property or packages by aircraft for compensation 
or hire.
0
29. Add Sec.  107.8 to read as follows:

[[Page 38363]]

Sec.  107.8  Aviation Safety Reporting Program: Prohibition against use 
of reports for enforcement purposes.

    The Administrator of FAA will not use reports submitted to the 
National Aeronautics and Space Administration under the Aviation Safety 
Reporting Program (or information derived therefrom) in any enforcement 
action except information concerning accidents or criminal offenses 
which are wholly excluded from the Program.
0
30. Add Sec.  107.10 to read as follows:


Sec.  107.10  Prohibition on interference with a remote pilot in 
command or visual observer.

    No person may assault, threaten, intimidate, or interfere with a 
remote pilot in command or visual observer in the performance of their 
duties regarding unmanned aircraft operations.
0
31. Revise Sec.  107.41 to read as follows:


Sec.  107.41  Operations in certain airspace.

    (a) No person may operate an unmanned aircraft under this part in 
Class B, Class C, or Class D airspace or within the lateral boundaries 
of the surface area of Class E airspace designated for an airport 
unless all the following conditions are met:
    (1) The unmanned aircraft is operated 400 feet above ground level 
or below;
    (2) The unmanned aircraft is operated in compliance with this part.
    (b) No person may conduct operations under this section in any 
airspace designated by the Administrator as requiring prior 
authorization, except in accordance with that authorization.
    (c) An operator may deviate from any provision of this section 
under the terms of an authorization issued by the Administrator.
    (d)(1) A list of airspace designated by the Administrator as 
requiring prior authorization prior to operating under this section can 
be found in FAA Order JO 7400.[XX], Unmanned Aircraft System Airspace 
Designations, dated [TBD]. FAA Order JO 7400.[XX] is incorporated by 
reference with the approval of the Director of the Federal Register in 
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. The approval to 
incorporate by reference FAA Order JO 7400.XX is effective [Month, XX, 
202X], through [Month, XX, 202X+1]. This IBR material is available for 
inspection at FAA and at the National Archives and Records 
Administration (NARA). Contact FAA at: Rules and Regulations Group, 
Federal Aviation Administration, 800 Independence Avenue SW, 
Washington, DC 20591, (202) 267-8783. An electronic version of FAA 
Order JO 7400.[XX] is available on FAA's website at www.faa.gov/air_traffic/publications. For information on the availability of this 
material at NARA, visit www.archives.gov/federalregister/cfr/ibr-locations or email [email protected].
    (2) Before updating FAA Order JO 7400.[XX], FAA will publish any 
proposed changes to designated airspace, in full text, as proposals in 
the Federal Register, unless there is good cause to forgo notice and 
comment rulemaking, followed by publication of associated final rules 
in the Federal Register. FAA will then integrate these updates into the 
next edition of FAA Order JO 7400.[XX]. FAA will request that the 
Director of the Federal Register approve the IBR of the next edition of 
the order as of [MM/DD/YYYY+1].
    (e) Unmanned aircraft systems operations are prohibited from flying 
in Security Sensitive Airspace, unless authorized.


Sec.  107.205  [Amended]

0
32. Amend Sec.  107.205 by removing the last sentence in paragraph (a) 
and removing and reserving paragraphs (c) and (h).
0
33. Add part 108 to subchapter F to read as follows:

PART 108--OPERATIONS OF UNMANNED AIRCRAFT SYSTEMS BEYOND VISUAL 
LINE OF SIGHT

Subpart A--General
Sec.
108.1 Applicability.
108.5 Definitions.
108.10 Reproduction or alteration.
108.15 Prohibition in interference with unmanned aircraft operations 
personnel.
108.20 Inspection, testing, and demonstration of compliance.
108.25 Aviation safety reporting program: prohibition against use of 
reports for enforcement purposes.
108.30 Base of operations.
108.35 Operator identification.
108.40 Operator recordkeeping requirements.
108.45 Operator reporting requirements.
Subpart B--Operating Rules
Sec.
108.100 General.
108.105 Unmanned aircraft.
108.110 Unmanned aircraft lighting.
108.115 Registration.
108.120 General operating requirements.
108.125 Careless or reckless operation.
108.130 Manuals and instructions.
108.135 Company operations manual.
108.140 Aircraft performance.
108.145 Weather conditions.
108.150 Operating location.
108.155 Unmanned aircraft tracking.
108.160 ADS-B and transponder use.
108.165 Area of operations.
108.170 Preflight requirements.
108.175 Operating restrictions.
108.180 Operations in controlled airspace.
108.185 Operation over people.
108.190 Use of strategic deconfliction and conformance monitoring.
108.195 Operation near aircraft; low altitude right-of-way rules.
108.200 Operational status broadcast.
108.205 Operation in shielded areas.
108.210 Operation of multiple unmanned aircraft.
108.215 Emergency conditions.
108.220 Unmanned aircraft flight restriction.
Subpart C--Operations Personnel
Sec.
108.300 General.
108.305 Operations supervisor.
108.310 Flight coordinator.
108.315 Personnel knowledge and training.
108.320 Medical condition.
108.325 Alcohol or drugs.
108.330 Duty and rest requirements.
108.335 Security threat assessment for certain personnel.
Subpart D--Permitted Operations
Sec.
108.400 Operations under a permit.
108.405 Applications for operating permits.
108.410 Duration of permits.
108.415 Issuance of an operating permit.
108.420 Denial, suspension, or revocation of operating permits.
108.425 Amendment of permits.
108.430 Display of permit.
108.435 Cybersecurity.
108.440 Package delivery operations.
108.445 Agricultural operations.
108.450 Aerial surveying operations.
108.455 Civic interest operations.
108.460 Unmanned aircraft operations training.
108.465 Demonstration operations.
108.470 Flight test operations.
108.475 Recreational permit operations.
Subpart E--Certificated Operations
Sec.
108.500 Operations under a certificate.
108.505 Applications for operating certificates.
108.510 Duration of certificates.
108.515 Issuance of an operating certificate.
108.520 Denial, suspension, or revocation of operating certificates.
108.525 Amendment of certificates.
108.530 Recency of operations.
108.535 Cybersecurity.
108.540 Training program.
108.545 Validation tests.
108.550 Communication and ground risk assessments.
108.555 Inoperative equipment.
108.560 Safety management system.
108.565 Package delivery operations.
108.570 Hazardous materials.
108.575 Agricultural operations.
108.580 Aerial surveying operations.
108.585 Civic interest operations.
Subpart F--Maintenance and Alterations
Sec.
108.600 General.
108.605 Persons performing maintenance and alterations.
108.610 Unmanned aircraft maintenance.
108.615 Life-limited parts.

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108.620 Unmanned aircraft batteries.
108.625 Repairs and alterations.
108.630 Operation after maintenance or alterations.
Subpart G--Procedures for Unmanned Aircraft System Airworthiness 
Acceptance
Sec.
108.700 Airworthiness acceptance generally.
108.705 Means of compliance.
108.710 Compliance with design, test, production, noise, and 
airworthiness requirements.
108.715 Declaration of compliance.
108.720 Documents.
108.725 Flight data.
108.730 Quality assurance system.
108.735 Production.
108.740 Continued operational safety program.
108.745 Inspections and audits.
108.750 Design changes.
108.755 Repairs and alterations.
108.760 Record retention.
108.765 Rescission.
Subpart H--Design and Testing Requirements for Airworthiness Acceptance
Sec.
108.800 General.
108.805 Size, weight, and speed.
108.810 Simplified user interaction.
108.815 Signal monitoring and transmission.
108.820 Position, navigation, and timing.
108.825 Collision avoidance.
108.830 Anti-collision lighting.
108.835 Position lighting.
108.840 Power generation, storage, and distribution system.
108.845 Propulsion system.
108.850 Fuel system.
108.855 Fire protection.
108.860 Software.
108.865 Electronic hardware.
108.870 Systems and equipment.
108.875 Cybersecurity.
108.880 Associated elements design and performance requirements.
108.885 Suitability and durability of materials.
108.890 Operating environment conditions.
108.895 Lightning protection.
108.900 Flight data recorder.
108.905 Flight data analysis.
108.910 Noise.
108.915 Placards.
108.920 Identification and marking.
108.925 Additional design and performance requirements for specific 
operational purposes.
108.930 Developmental testing.
108.935 Function and reliability testing.

    Authority:  49 U.S.C. 106(f), 40101 note, 40103(b), 44701(a)(5), 
46105(c), 46110, 44807.

Subpart A--General


Sec.  108.1  Applicability.

    (a) Except as provided in paragraph (b) of this section, this part 
applies to any person who--
    (1) Conducts, or intends to conduct, unmanned aircraft system 
beyond visual line of sight operations in the U.S. airspace;
    (2) Requests FAA issuance of an operating permit or certificate to 
operate an unmanned aircraft system in accordance with this part;
    (3) Performs maintenance on an unmanned aircraft system that has 
received an airworthiness acceptance issued in accordance with this 
part;
    (4) Designs, manufactures, or produces an unmanned aircraft system 
for operation under this part;
    (5) Holds or applies for airworthiness acceptance of an unmanned 
aircraft system in accordance with subparts G and H of this part; or
    (6) Submits a voluntary consensus standard for acceptance or 
approval by the Administrator as a means of compliance for any 
provision of this part.
    (b) This part does not apply to any of the following:
    (1) Unmanned aircraft operation conducted in accordance with part 
107 of this chapter.
    (2) Unmanned aircraft operation conducted in accordance with part 
91 of this chapter.
    (3) Unmanned aircraft systems operation conducted under the 
provisions of 49 U.S.C. 44809.
    (4) An aircraft with any person on board during operations.


Sec.  108.5  Definitions.

    The following definitions apply to this part. If there is a 
conflict between the definitions of this part and the definitions 
specified in Sec.  1.1 of this chapter, the definitions in this part 
control for the purposes of this part:
    Associated Elements means those elements that are not directly 
affixed to an unmanned aircraft and are necessary to interact with the 
unmanned aircraft for safe flight during all normal, abnormal, or 
emergency flight operations.
    Command and Control Link means the command and control data link 
which connects the unmanned aircraft and the ground control station for 
the purposes of managing the flight.
    Conformance monitoring means the real-time ability to determine 
whether an unmanned aircraft is flying in accordance with its 
operational intent, and to share situational awareness data with 
relevant airspace users when off-nominal or contingent situations 
occur.
    Detect and avoid means the ability for an unmanned aircraft system 
to see, sense, or detect aircraft or other hazards and to make a flight 
adjustment to avoid a collision hazard.
    Flight coordinator means an individual who monitors an unmanned 
aircraft system operating under this part and that can control, 
initiate emergency actions, or issue commands to the unmanned aircraft 
during flight.
    Ground control station means the associated element that 
communicates with and controls the unmanned aircraft.
    Hazardous material means a material as defined in 49 U.S.C. 5102(2) 
and 49 CFR 171.8.
    Life-limited part means any part for which a mandatory replacement 
limit is specified by the manufacturer of the unmanned aircraft and is 
documented in the maintenance instructions.
    Operational intent means a volume-based representation of airspace 
encapsulating the intended flight path for an unmanned aircraft 
operation, comprising one or more overlapping or contiguous 3-
dimensional volumes of airspace combined with a beginning and ending 
time for each volume.
    Operations personnel means a person who is performing a safety 
function employed by, or used by, an operator under this part.
    Operator means a person that conducts operations under this part.
    Package delivery means the delivery of goods, materials, or 
supplies from a business or commercial location to a residential or 
business end user.
    Safe distance means the minimum distance that is necessary to avoid 
a collision hazard with another aircraft.
    Strategic deconfliction means the use of an interoperable strategic 
conflict detection and resolution capability to mitigate the risk of 
collision between participating unmanned aircraft.
    Strategic conflict detection means the process of identifying 
overlapping operational intents among unmanned aircraft.
    Strategic conflict resolution means the process of resolving 
overlapping operational intents among unmanned aircraft.
    Target average conformance means the process of monitoring an 
operator's ability to fly in accordance with its operational intents 
over a defined period of time.


Sec.  108.10  Reproduction or alteration.

    (a) No person may make or cause to be made--
    (1) Any fraudulent or intentionally false record or report that is 
required to be made, kept, or used to show compliance with any 
requirement under this part.
    (2) Any reproduction or alteration, for fraudulent purpose, of any 
permit, certificate, authorization, record, or

[[Page 38365]]

report required or issued under this part.
    (b) The commission by any person of an act prohibited under 
paragraph (a) of this section is a basis for any of the following:
    (1) Denial of an application for an operating permit or 
certificate.
    (2) Denial of a waiver.
    (3) Denial of a declaration of compliance.
    (4) Suspension or revocation of any permit, certificate, waiver, 
airworthiness acceptance, declaration of compliance issued, or similar 
held by that person.
    (5) A civil penalty.


Sec.  108.15  Prohibition on interference with unmanned aircraft 
operations personnel.

    No person may assault, threaten, intimidate, or interfere with the 
operations personnel of an unmanned aircraft in the performance of 
their duties related to unmanned aircraft operations.


Sec.  108.20  Inspection, testing, and demonstration of compliance.

    (a) An operator of an unmanned aircraft system must--
    (1) Have the authorization to operate and identification readily 
accessible when operating.
    (2) Present the operating authorization and identification for 
inspection upon a request from any of the following:
    (i) The Administrator.
    (ii) An authorized representative of the National Transportation 
Safety Board.
    (iii) Any Federal, State, or local law enforcement officer.
    (3) Make available, upon request, to the Administrator or any 
authorized representative of the National Transportation Safety Board 
any document, record, or report required to be kept under the 
regulations of this chapter.
    (b) The operator of an unmanned aircraft system must, upon request, 
allow the Administrator to witness any test or make inspection of the 
unmanned aircraft system, including--
    (1) Any aspect of the operation of an unmanned aircraft system;
    (2) Access to the operations area for the unmanned aircraft; and
    (3) If applicable, the automated data services utilized to 
determine compliance with this part.
    (c) Each employee of, or person used by, the operator who is 
responsible for maintaining the operator's records must make those 
records available to the Administrator.
    (d) Failure by any operator to make available to the Administrator 
upon request any required record, document, or report is grounds for 
suspension of all or any part of the operator's permit or certificate.


Sec.  108.25  Aviation safety reporting program: prohibition against 
use of reports for enforcement purposes.

    The Administrator will not use reports submitted to the National 
Aeronautics and Space Administration under the Aviation Safety 
Reporting Program (or information derived therefrom) in any enforcement 
action, except information concerning accidents or criminal offenses, 
which are wholly excluded from the program.


Sec.  108.30  Base of operations.

    (a) Each operator must maintain a principal base of operations in 
the United States and submit that information in accordance with Sec.  
108.405 or Sec.  108.505, as appropriate.
    (b) If different from the principal base of operations, the 
operator shall provide a U.S. physical address that shall serve as the 
primary point of contact for correspondence with FAA.
    (c) At least 30 days before changing the location of its principal 
base of operations, an operator must provide written notification to 
the Administrator.
    (d) An operator may perform operations at locations other than the 
principal base of operations, as authorized by the Administrator.


Sec.  108.35  Operator identification.

    (a) Unless otherwise authorized by the Administrator, an operator 
may not operate or advertise services of an unmanned aircraft under 
this part using a business name other than a business name listed on 
the operating permit or certificate.
    (b) No operator may operate an unmanned aircraft under this part 
unless the identity of the unmanned aircraft operator is displayed on 
the exterior of the unmanned aircraft in a manner acceptable to the 
Administrator.


Sec.  108.40  Operator recordkeeping requirements.

    Each operator shall keep records of the items listed in paragraphs 
(a) through (e) of this section per the timelines specified in 
paragraph (f) of this section and must provide access or copies to the 
Administrator upon request in a manner acceptable to the Administrator.
    (a) Unmanned Aircraft. Each operator must maintain records on each 
unmanned aircraft used in operations under this part, including:
    (1) The total time in service of each unmanned aircraft.
    (2) The status of any life-limited parts.
    (3) Records of each flight performed under this part which 
includes--
    (i) The time, date, and duration of the flight;
    (ii) The unmanned aircraft registration number;
    (iii) The type of operation;
    (iv) The individual flight paths of each flight including origin, 
destination, and altitude(s);
    (v) The name of the designated operations personnel assigned to 
each flight;
    (vi) Landing locations (if different from takeoff origin or 
destination locations);
    (vii) For package delivery operations, the pickup points and 
delivery locations for the flight; and
    (viii) For agricultural operations, the name and address of each 
person for whom agricultural unmanned aircraft services were provided, 
the date of the service, and the name and quantity of the material 
dispensed.
    (b) Personnel. Each operator shall maintain records on each 
operations personnel required by the company operations manual and used 
in operations under this part, including--
    (1) The full name of the individual;
    (2) The individual's qualifications in sufficient detail to 
determine their ability to participate in operations under this part;
    (3) The individual's current duties and the date of assignment to 
those duties;
    (4) Any information concerning the individual's release from 
employment for cause; and
    (5) For operators holding an operating certificate pursuant to 
subpart E of this part--
    (i) The dates and times of operations personnel assigned work 
shifts,
    (ii) The length of the rest period prior to each duty period for 
each of the required operations personnel, and
    (iii) Total hours on duty per calendar day for each of the required 
operations personnel.
    (c) Mechanical Irregularities. Each operator shall provide a log 
for operations personnel to record mechanical irregularities for the 
unmanned aircraft and its associated elements.
    (1) Each operations person shall enter, or cause to be entered, 
each mechanical irregularity in the log for the unmanned aircraft and 
its associated elements that comes to the person's attention.
    (2) Each operations personnel who takes corrective action 
concerning a reported or observed failure or malfunction for the 
unmanned aircraft or its associated elements shall enter, or have 
entered, the action taken in the log.

[[Page 38366]]

    (d) Maintenance. Each operator shall ensure that it maintains 
records of the unmanned aircraft inspection status and for each 
maintenance or alteration activity to the unmanned aircraft or its 
associated elements.
    (1) The records must include the current inspection status of the 
unmanned aircraft and, for each maintenance or alteration activity 
performed by operations personnel on the unmanned aircraft or its 
associated elements, a record that includes--
    (i) A general description of the work performed;
    (ii) The completion date of the work;
    (iii) The identification of the person performing, or who 
performed, the work; and
    (iv) The approval for return to service.
    (2) An operator need not comply with the requirements of paragraph 
(d)(1) of this section for the removal and replacement of unmanned 
aircraft batteries designed for frequent, toolless swapping if the 
operator has other means of tracking battery use, life, and 
performance.
    (3) An operator need not comply with the requirements of paragraph 
(d)(1) of this section for the removal and replacement of unmanned 
aircraft components that are designed for toolless removal and 
reinstallation if the operator has procedures for ensuring that any 
part that is removed is inspected for serviceability prior to being 
reinstalled and--
    (i) The parts are reinstalled on the same unmanned aircraft; or
    (ii) The parts are not subject to time limits; or
    (iii) The operator has other means of tracking installation and 
use.
    (e) Training. Each operator must maintain a record of all initial 
and recurrent training taken by each person required to receive 
training under this part.
    (1) The record shall contain, at a minimum:
    (i) The person's name and assigned job function,
    (ii) The date of hire or start of a related job function,
    (iii) The most recent training completion date,
    (iv) A description, copy, or reference to training materials used 
to meet the training requirement,
    (v) The name and address of the organization providing the 
training, and
    (vi) A copy of the certification issued when the individual was 
trained, which shows that a test has been completed satisfactorily.
    (2) Training records required to be kept under this section 
include:
    (i) Records of the initial and recurrent training required under 
Sec.  108.315.
    (ii) Records of the initial and recurrent training for the 
recognition of hazardous materials required under Sec.  108.440.
    (iii) Records of the initial and recurrent hazardous materials 
training taken by each person who performs or directly supervises a job 
function specified in Sec.  108.570(b).
    (iv) Records of the training received for agricultural operations 
in accordance with the training required under Sec. Sec.  108.445(i) 
and 108.575(g).
    (f) Timeframes. Records required under this paragraph shall be kept 
per the following timeframes.
    (1) Unmanned Aircraft. Records required under paragraphs (a)(1) and 
(2) of this section must be maintained for the life of the unmanned 
aircraft. Data required under paragraph (a)(3) of this section must be 
maintained for a minimum of 24 months.
    (2) Personnel. Records required under paragraphs (b)(1) through (3) 
of this section must be maintained for the length of employment of that 
individual plus 12 months after separation. Data required under 
paragraph (b)(4) of this section must be maintained for 12 months after 
the separation from employment of that individual. Records required 
under paragraph (b)(5) of this section must be maintained for three (3) 
months.
    (3) Mechanical Irregularities. Records required under paragraph (c) 
of this section must be maintained for a minimum of 24 months.
    (4) Maintenance. Records required under paragraph (d) of this 
section must be maintained for a minimum of 24 months.
    (5) Training. Records required under paragraph (e) of this section 
must be maintained for the length of employment of that individual plus 
12 months after separation.


Sec.  108.45  Operator reporting requirements.

    (a) Flight Data. The operator must maintain a flight data 
collection system that collects data related to the usage and 
reliability of the unmanned aircraft.
    (1) The operator must report to FAA aggregate flight data 
consisting of the total number of flight hours operated for each 
unmanned aircraft, including the make/model/series and registration 
number, used in operations under this part, in a form and manner 
acceptable to the Administrator.
    (2) The operator must share, or allow the aircraft manufacturer to 
collect, data related to the unmanned aircraft reliability for each 
aircraft operated by the operator. At a minimum, that data must consist 
of:
    (i) Make, model, series, and serial number,
    (ii) Flight duration,
    (iii) Altitude,
    (iv) Speed,
    (v) Location, and
    (vi) Any incidents or anomalies encountered during flight 
operations.
    (b) Unmanned Aircraft. Each operator must report to FAA the 
registration and serial numbers of each unmanned aircraft used in 
operations under this part, in a form and manner acceptable to the 
Administrator. Compliance with this requirement can be combined with 
the reporting of flight data under paragraph (a) of this section, as 
applicable.
    (c) Interruption reports. Each operator shall provide FAA a summary 
of occurrences, in a form and manner acceptable to the Administrator, 
that resulted in--
    (1) An unplanned or precautionary landing away from the normally 
designated landing location; or
    (2) A change or diversion in the unmanned aircraft's planned route 
caused by a known or suspected mechanical difficulty or malfunction.
    (d) Service difficulty reports. (1) Each operator certificated 
under subpart E of this part shall report to the unmanned aircraft 
manufacturer any failure, malfunction, or defect in an unmanned 
aircraft system that causes momentary or permanent loss of control or 
communication of the unmanned aircraft if it has endangered, or may 
endanger, the safe operation of the unmanned aircraft. The information 
must contain:
    (i) The date.
    (ii) The affected unmanned aircraft, including the type and 
manufacturer's serial number.
    (iii) The nature of the failure, malfunction, or defect.
    (iv) Identification of the part and system involved, including 
available information pertaining to designation of the major component.
    (v) Apparent cause of the failure, malfunction, or defect (e.g., 
wear, crack, design deficiency, or personnel error).
    (vi) The corrective actions taken.
    (2) Each operator who uses an authorized service approved under 
part 146 of this chapter shall report to the automated data service 
provider any failure, malfunction, or defect in an authorized service 
if it has endangered or may endanger the safe operation of the unmanned 
aircraft. The information must contain:
    (i) The date and time.
    (ii) The affected unmanned aircraft, including the type and 
identification number.

[[Page 38367]]

    (iii) The nature of the failure, malfunction, or defect.
    (iv) Identification of the authorized service involved, including 
its version.
    (v) Apparent cause of the failure, malfunction, or defect (e.g., 
contingent State, interface issue, data issue, time delay/latency 
issue, operational response).
    (vi) The corrective actions taken.
    (3) Operators must also provide the reports, information, and data 
associated with paragraphs (d)(1) and (2) to FAA upon request.
    (e) Security Occurrences. Each operator shall report to FAA the 
following security incidents in a form and manner acceptable to the 
Administrator:
    (1) A security breach that results in loss of control of the 
unmanned aircraft;
    (2) A security breach that results in unauthorized access to the 
operator's facilities, aircraft, loading areas, hazardous materials, or 
goods to be transported; and
    (3) A security breach that results in unauthorized access to the 
operator's networks, devices, and or data irrespective of whether it 
affects the integrity, accuracy, or reliability of unmanned aircraft 
operations.
    (4) The information must contain:
    (i) The date and time of the incident.
    (ii) The nature and scope of the incident.
    (iii) Identification of any vulnerabilities that led to loss of 
control or unauthorized access.
    (iv) The corrective actions taken.
    (5) Operators must also provide other pertinent information and 
data associated with the security breach to FAA upon request.
    (f) Emergency conditions. Each operator who, under the provisions 
of Sec.  108.215, deviates from a rule of this part shall, within 10 
days after the deviation, excluding Saturdays, Sundays, and Federal 
holidays, provide a report of the aircraft operation and a description 
of the deviation and reasons for it, in a manner acceptable to the 
Administrator.
    (g) Event reporting. Operators must report to the Administrator, in 
a form and manner acceptable to the Administrator, any operation of an 
unmanned aircraft involving damage to any property, other than the 
unmanned aircraft, that exceeds $500, and any malfunction or failure of 
any system that leads to operations into an unauthorized area. The 
report shall contain, at a minimum--
    (1) The date, time, and location of the event;
    (2) Description of the event, including operational and 
environmental factors, including whether use, failure, malfunction, or 
defect of an automated data service provider was a factor; and
    (3) Description of the known contributing factors for the event.
    (h) Timeframes. Each report required under this section must be 
provided as follows:
    (1) Flight Data. Aggregate flight data must be provided to FAA, and 
unmanned aircraft reliability data must be provided to the 
manufacturer, or allow the manufacturer to access the data, at a 
minimum of once each calendar month.
    (2) Unmanned Aircraft. A list of unmanned aircraft registration and 
serial numbers used in operations must be provided to FAA a minimum of 
at least once each 12 calendar months.
    (3) Interruption reports. A summary of occurrences must be provided 
no later than the end of the 10th day of the following month in which 
the occurrence took place.
    (4) Service difficulty reports. Reports of failures, malfunctions, 
or defects must be submitted to the manufacturer not later than seven 
(7) days after the occurrence. When additional information becomes 
available, including information from other persons, operators must 
submit it as a supplement to the first report.
    (5) Security Occurrences. Reports of security-related occurrences 
must be submitted to FAA not later than 96 hours after the occurrence. 
When additional information becomes available, including information 
from other persons, operators must submit it as a supplement to the 
first report within a reasonable timeframe.
    (6) Emergency Conditions. Reports of deviations from the 
regulations due to emergency conditions must be submitted to FAA within 
10 days of the deviation.
    (7) Event reporting. Reports of events required under paragraph (g) 
of this section must be submitted to FAA not later than 10 days after 
the event.

Subpart B--Operating Rules


Sec.  108.100  General.

    (a) Operations under this part require:
    (1) Applying for and operating under the provisions of an operating 
permit issued by the Administrator under the provisions of subpart D of 
this part; or
    (2) Applying for and operating under the provisions of an operating 
certificate issued by the Administrator under the provisions of subpart 
E of this part.
    (b) No operator may advertise or otherwise offer to perform an 
operation subject to this part unless that operator holds the 
appropriate operating certificate or permit under this part to conduct 
that operation.


Sec.  108.105  Unmanned aircraft.

    (a) The unmanned aircraft and its associated elements must be in 
condition for safe operation.
    (b) Unmanned aircraft used under this part must have received an 
airworthiness acceptance in accordance with subparts G and H of this 
part, except for operations under a flight test permit pursuant to 
Sec.  108.470.
    (c) Unmanned aircraft used under this part must meet the equipage 
requirements of subpart H of this part.


Sec.  108.110  Unmanned aircraft lighting.

    (a) Unmanned aircraft must be equipped with an anti-collision 
lighting system that meets the requirements of Sec.  108.830. Except as 
provided in paragraph (c) of this section, the anti-collision lights 
must be used during all flight operations.
    (b) If an unmanned aircraft is equipped with position lights per 
the requirements of Sec.  108.835, the operator must use the lighted 
position lights during any night operations.
    (c) The flight coordinator may reduce the intensity of, or turn off 
the unmanned aircraft lighting, if the flight coordinator determines 
that, because of operating conditions, it would be in the interest of 
safety to do so.


Sec.  108.115  Registration.

    No operator may operate a civil unmanned aircraft under this part 
unless the unmanned aircraft has an effective U.S. registration 
certificate issued to its owner as required pursuant to part 47 of this 
chapter.


Sec.  108.120  General operating requirements.

    (a) Operations must be conducted with an unmanned aircraft, and 
associated elements, that are in a condition for safe operation. If the 
operator knows or has reason to know that the unmanned aircraft, or 
associated elements, are no longer in a condition for safe operation, 
the operator may not initiate or continue the flight.
    (b) Operations must be conducted in accordance with the 
manufacturer's operating instructions or other procedures acceptable to 
the Administrator.
    (c) Except for operations conducted under a flight test permit 
under Sec.  108.470 or in accordance with Sec.  108.555, operations 
must be conducted with properly installed and operational instruments 
and equipment that are identified as being required by the 
manufacturer's operating instructions.

[[Page 38368]]

    (d) The operations supervisor, as required under Sec.  108.305, is 
directly responsible for, and is the final authority as to, the safe 
and secure operation of all unmanned aircraft under their purview and 
ensuring that the operator complies with all applicable regulatory 
requirements and the company operations manual, as required under Sec.  
108.135.


Sec.  108.125  Careless or reckless operation.

    (a) No person may operate an unmanned aircraft in a careless or 
reckless manner that endangers the life or property of another.
    (b) No person may allow an object to be dropped from an unmanned 
aircraft in a manner that creates an undue hazard to persons or 
property of another.
    (c) No person may operate an unmanned aircraft in a manner that 
creates a collision hazard with persons, an aircraft with one or more 
persons on board, vehicles, structures, other unmanned aircraft, or the 
property of another.


Sec.  108.130  Manuals and instructions.

    (a) Operators shall ensure that the following documents are 
available and readily accessible during relevant operations:
    (1) The manufacturer's operating instructions as provided in Sec.  
108.720(a)(1).
    (2) The manufacturer's maintenance instructions as provided in 
Sec.  108.720(a)(2).
    (3) The manufacturer's configuration and control document as 
provided in Sec.  108.720(a)(3).
    (4) The company operations manual.
    (b) The operator must ensure that all operations personnel have 
access to the documents that pertain to their duties and 
responsibilities during the performance of their duties.


Sec.  108.135  Company operations manual.

    (a) Each operator shall prepare and keep current a company 
operations manual that sets forth the operator's procedures and 
policies acceptable to the Administrator.
    (b) The company operations manual may be in the form of one or more 
documents.
    (c) The manual must be made available to the Administrator upon 
request.
    (d) The manual must not be contrary to any applicable Federal 
regulations, the operator's operating certificate or permit, or any 
authorizations held.
    (e) The information and instructions contained in the manual must 
be displayed clearly and be retrievable in the English language.
    (f) The revision status must be controlled in such a way a person 
can immediately ascertain the information is the most current.
    (g) The manual must address the following--
    (1) The operations personnel required under Sec.  108.300 and their 
assigned area of responsibility, duties, responsibilities, and 
authority;
    (2) The number and positions of operations personnel required for 
safe operations under Sec.  108.300 and their responsibilities;
    (3) Preflight procedures;
    (4) Unmanned aircraft weight and balance procedures;
    (5) Accident notification procedures;
    (6) Procedures for determining and communicating unmanned aircraft 
condition to appropriate operations personnel;
    (7) Procedures for complying with the recordkeeping and reporting 
requirements as required under Sec. Sec.  108.40 and 108.45;
    (8) Access to and use of unmanned aircraft maintenance procedures 
and inspection criteria;
    (9) Procedures for developing and implementing emergency 
procedures;
    (10) Procedures for the retrieval of unmanned aircraft that fail to 
return to their intended landing location;
    (11) Unmanned aircraft loading procedures, as applicable; and
    (12) Procedures for the identification and disposition of hazardous 
materials.


Sec.  108.140  Aircraft performance.

    (a) Operations must be conducted at a speed equal to or less than 
those prescribed in the manufacturer's operating instructions, unless 
operating conditions exist that require a higher minimum safe speed.
    (b) Operations must be conducted at a weight equal to or less than 
specified for the type of permit or certificate operated in accordance 
with this part.


Sec.  108.145  Weather conditions.

    Operations must not be conducted in weather conditions, or with 
frost, ice, or snow adhering to the unmanned aircraft prior to takeoff, 
other than as provided in the manufacturer's operating instructions.


Sec.  108.150  Operating location.

    (a) Operations must be conducted from locations that are pre-
designated and access-controlled and ensure any persons who are not 
directly participating in the operation are safely segregated from 
flight operations.
    (b) All operations of unmanned aircraft under this part must be 
monitored and controlled from a location that is physically located 
within the United States.
    (c) Each operator must develop and implement physical security 
policies and processes, including, but not limited to, processes for 
preventing unauthorized access to the operation's facilities as 
described in paragraph (a), and protecting other controlled access 
areas, as applicable.


Sec.  108.155  Unmanned aircraft tracking.

    The operator must be able to determine the geographic location and 
altitude of each unmanned aircraft at all times during flight 
operations.


Sec.  108.160  ADS-B and transponder use.

    Unless otherwise authorized by the Administrator, operations must 
not be conducted--
    (a) With Automatic Dependent Surveillance-Broadcast Out equipment 
in transmit mode; or
    (b) With a transponder in transmit mode.


Sec.  108.165  Area of operations.

    For each operating area, the operator is responsible for all of the 
following:
    (a) Obtaining approval from FAA, in a manner acceptable to the 
Administrator, for the area of intended operations prior to beginning 
initial operations in the area.
    (b) Designating safe alternate landing areas that the unmanned 
aircraft can reach if it is unable to complete its intended flight 
operation. The alternate landing areas must meet all of the following 
conditions:
    (1) Avoid areas where overflight is not permitted.
    (2) Provide for a landing without undue hazard to persons or 
property on the ground.
    (c) Designating appropriate takeoff, landing, and loading areas 
that are--
    (1) Access-restricted to only persons participating in the 
operation;
    (2) Free of any obstructions that could pose a hazard; and
    (3) Adequate for the operation, considering such items as size, 
surface, obstructions, and lighting.
    (d) Ensuring adequate communications coverage and availability, and 
appropriate lost link procedures.
    (e) Ensuring that the planned operations minimize risk to persons 
and property on the ground as appropriate and consider terrain and 
obstacles that the operator intends to overfly.


Sec.  108.170  Preflight requirements.

    Prior to operating an unmanned aircraft under this part, the 
operator must--

[[Page 38369]]

    (a) Ensure weather conditions are appropriate for the intended 
operation, are determined in a manner acceptable to the Administrator, 
and are in accordance with the unmanned aircraft limitations specified 
by the manufacturer;
    (b) Be familiar with any airspace and flight restrictions along the 
entire route of flight;
    (c) Ensure the population density to be overflown complies with 
Sec.  108.185;
    (d) Identify the locations of ground obstacles and hazards;
    (e) Ensure the unmanned aircraft system is in a condition for safe 
operation;
    (f) Ensure there are sufficient personnel for the operation;
    (g) If required by Sec.  108.180 or Sec.  108.185, ensure that a 
strategically deconflicted operational intent is accepted by the 
automated data service provider prior to takeoff;
    (h) Ensure the reserve power recommended by the manufacturer is 
satisfied, and that there is enough available power or fuel, 
considering wind and forecast weather conditions, for the unmanned 
aircraft system to operate for the intended operational time with 
sufficient reserves such that the unmanned aircraft can land without 
posing an undue risk to unmanned aircraft or people and property on the 
ground;
    (i) Ensure that operations will be conducted within the weight and 
balance limitations defined by the unmanned aircraft manufacturer;
    (j) Ensure that any object attached to, or carried by, the unmanned 
aircraft is secure and does not adversely affect the flight 
characteristics or controllability of the unmanned aircraft; and
    (k) Ensure the unmanned aircraft navigation and communication 
systems are working properly.


Sec.  108.175  Operating restrictions.

    (a) No operator may operate an unmanned aircraft under this part 
higher than 400 feet above the ground level unless the operator is 
operating in class G airspace and--
    (1) Is temporarily transiting steeply changing terrain;
    (2) Is operating an unmanned aircraft within a 400-foot radius of a 
structure and does not fly higher than 400 feet above the structure's 
immediate uppermost limit; or
    (3) Is temporarily maneuvering up to 450 feet above the ground 
level to avoid a collision.
    (b) An operator operating under this part must comply with the 
provisions of Sec. Sec.  91.133, 91.137 through 91.145, and 99.7 of 
this chapter.
    (c) Operators should notify the controlling agency for any 
operations planned within a military operating area (MOA) or on a 
military training route (MTR). Operators must always exercise extreme 
caution and remain vigilant of all MTRs and or non-regulatory SUAs.
    (d) No operator may operate an unmanned aircraft under this part in 
a manner that interferes with operations or traffic patterns at any 
airports, heliports, seaplane bases, space launch facilities, or any 
facilities used for VTOL aircraft landing and takeoffs.


Sec.  108.180  Operation in controlled airspace.

    (a) Requirements. Unless otherwise authorized by the Administrator, 
no operator may operate an unmanned aircraft under this part in Class 
B, Class C, or Class D airspace or within the lateral boundaries of the 
surface area of Class E airspace designated for an airport unless all 
the following conditions are met:
    (1) The operation is conducted at 400 feet above ground level or 
below.
    (2) The operation is conducted using an approved method for 
strategic deconfliction and conformance monitoring in accordance with 
the requirements of Sec.  108.190.
    (b) Detect and avoid. Unless otherwise authorized by the 
Administrator, no operator may operate an unmanned aircraft under this 
part in Class B or C airspace unless the unmanned aircraft system is 
able to detect and avoid an aircraft not broadcasting its location in 
accordance with the requirements of Sec.  108.195(a)(2) or Sec.  91.225 
of this chapter.
    (c) Prohibition. No operator may conduct operations under this 
section in any airspace designated in paragraph (d) of this section 
without an authorization issued by the Administrator.
    (d) Airspace Designations.
    (1) Any operator operating under this part must obtain 
authorization from the Administrator prior to accessing airspace 
designated in FAA Order JO 7400.[XX], Unmanned Aircraft System Airspace 
Designations.
    (2) To maintain operational safety or security, the Administrator 
may prohibit, on a temporary basis, any operator from conducting 
operations under this section in certain airspace without an 
authorization issued by the Administrator.
    (e) Incorporation by reference.
    (1) The incorporation by reference of FAA Order JO 7400.[XX], 
Unmanned Aircraft System Airspace Designations, dated [TBD] was 
approved by the Director of the Federal Register in accordance with 5 
U.S.C. 552(a) and 1 CFR part 51. The approval to incorporate by 
reference FAA Order JO 7400.XX is effective [Month, XX, 202X] through 
[Month, XX, 202X+1]. This incorporation by reference material is 
available for inspection at FAA and NARA. Contact FAA at: Rules and 
Regulations Group, Federal Aviation Administration, 800 Independence 
Avenue SW, Washington, DC 20591, (202) 267-8783. An electronic version 
of FAA Order JO 7400.XX is available on FAA's website at www.faa.gov/air_traffic/publications. For information on the availability of this 
material at NARA, visit www.archives.gov/federalregister/cfr/ibr-locations or email [email protected].
    (2) Before updating FAA Order JO 7400.[XX], FAA will publish any 
proposed changes to designated airspace, in full text, as proposals in 
the Federal Register, unless there is good cause to forgo notice and 
comment rulemaking, followed by publication of associated final rules 
in the Federal Register. FAA will then integrate these updates into the 
next edition of FAA Order JO 7400.[XX]. FAA will request that the 
Director of the Federal Register approve the IBR of the next edition of 
the order as of [MM/DD/YYYY+1].


Sec.  108.185  Operation over people.

    (a) Prohibition. No operator may operate an unmanned aircraft under 
this part over people except in accordance with the requirements of 
this section, unless otherwise authorized by the Administrator.
    (b) Open-Air Assemblies. Unless otherwise authorized by the 
Administrator, no operator may operate an unmanned aircraft under this 
part over open-air assemblies of persons.
    (c) Operating categories. The requirements under this section 
depend on the highest category of population density over which an 
operation is taking place. Categories 1 through 5 are calculated using 
the appropriate day or night data from Oak Ridge National Laboratory's 
LandScan USA population distribution data as of August 1st of each year 
determined as follows:
    (1) Category 1: Farther than 1 statute mile from any cell of 10 
people or higher.
    (2) Category 2: Within 1 statute mile of a cell of 10 people or 
higher, and not within a Category 3, 4, or 5 area.
    (3) Category 3: Within 1 statute mile of a cell of 25 people or 
higher, and not within a Category 4 or 5 area.
    (4) Category 4: Within 0.5 statute miles of a cell of 100 people or 
higher, and not within a Category 5 area.
    (5) Category 5: Within 0.5 statute miles of a cell of 2,500 people 
or higher.

[[Page 38370]]

    (d) Operating requirements. All operations over people must avoid 
operating where such operations may cause undue hazard to people on the 
ground. In addition, the following requirements apply:
    (1) Category 1: Operations must be conducted at least 50 feet away 
from any exposed, non-participating persons, unless otherwise 
authorized by the Administrator.
    (2) Category 2: Operations must not be conducted using a command 
and control link that utilizes radio frequency devices operating in 
accordance with 47 CFR part 15.
    (3) Category 3: Operators must:
    (i) Meet the requirements of Category 2 operations; and
    (ii) Conduct the operation using an approved method for strategic 
deconfliction in accordance with the requirements of Sec.  108.190.
    (4) Category 4: Operators must:
    (i) Meet the requirements of Category 3 operations; and
    (ii) Hold an operating certificate in accordance with subpart E.
    (5) Category 5: Operators must:
    (i) Meet the requirements of Category 4 operations; and
    (ii) Ensure that the unmanned aircraft system is able to detect and 
avoid an aircraft not broadcasting its location in accordance with the 
requirements of Sec.  108.195(a)(2).


Sec.  108.190   Use of strategic deconfliction and conformance 
monitoring.

    (a) Unless otherwise authorized by the Administrator, the following 
operations must be conducted with strategic deconfliction:
    (1) Operations in controlled airspace pursuant to Sec.  
108.180(a)(2).
    (2) Operations in a Category 3 or higher operating category 
pursuant to Sec.  108.185.
    (b) Unless otherwise authorized by the Administrator, operations in 
controlled airspace pursuant to Sec.  108.180(a)(2) must be conducted 
with conformance monitoring.
    (c) A strategic deconfliction capability must meet the following 
requirements:
    (1) Perform strategic conflict detection and resolution prior to 
takeoff, and in relation to other unmanned aircraft operations that are 
discoverable at that time; and
    (2) Maintain a target average conformance to all activated 
operational intents.
    (d) A conformance monitoring capability must meet the following 
requirements:
    (1) Provide immediate alerts to operations personnel when the 
unmanned aircraft exits its operational intent, consistent with 
criteria or parameters established prior to takeoff; and
    (2) Communicate information to other airspace users and FAA about 
the alert in paragraph (d)(1) of this section via a means acceptable to 
the Administrator.
    (e) Unless otherwise authorized by the Administrator, the 
requirements in paragraphs (a) and (b) must be achieved through 
operational use of an authorized service provided by an appropriately 
certificated automated data service provider under part 146 of this 
chapter.


Sec.  108.195   Operation near aircraft; low altitude right-of-way 
rules.

    (a) Unless operating in a shielded area as specified in Sec.  
108.205, each operator of an unmanned aircraft must yield the right-of-
way to all aircraft--
    (1) departing from or arriving at an airport or heliport; or
    (2) equipped and broadcasting their aircraft's location using--
    (i) ADS-B Out equipment that meets the design and performance 
requirements of Sec.  91.227 of this chapter; or
    (ii) Electronic conspicuity equipment that broadcasts a signal on 
Universal Access Transceiver Operating on the Radio Frequency 978 
Megahertz, containing the following information, in a message format 
that meets the requirements of Sec.  91.227 of this chapter. For the 
purposes of this paragraph, the definitions from Sec.  91.227 are used:
    (A) An indication of the aircraft's latitude and longitude
    (B) An indication of the aircraft's geometric altitude
    (C) An indication of the aircraft's velocity
    (D) An indication of the aircraft assigned ICAO 24-bit address, 
except when the pilot has not filed a flight plan, has not requested 
ATC services, and is using a TSO-C154c or TSO-C154d self-assigned 
temporary 24-bit address
    (E) A Navigation Integrity Category value of less than 0.5 nm
    (F) A System Design Assurance value of <1 x 10[supcaret]-3 per 
flight hour
    (G) A Source Integrity Level (SIL) value of <1 x 10[supcaret]-3 per 
flight hour or sample
    (b) When yielding right-of-way, the unmanned aircraft may not pass 
over, under, or ahead of the aircraft being yielded to unless at a safe 
distance. Safe distance must be determined in accordance with a method 
acceptable to the Administrator.


Sec.  108.200   Operational status broadcast.

    (a) Remote Identification. Unless otherwise authorized by the 
Administrator, no operator may operate an unmanned aircraft under this 
part unless all the following requirements are met:
    (1) Standard remote identification. The unmanned aircraft must meet 
the requirements for a standard remote identification unmanned aircraft 
under part 89 of this chapter.
    (2) Message Elements. The unmanned aircraft must be capable of 
broadcasting the message elements required under Sec.  89.305 of this 
chapter except that the control station location as required under 
Sec.  89.305(b) and (c) is not required if the unmanned aircraft is 
being operated without a flight coordinator in accordance with Sec.  
108.310.
    (3) Additional operational message elements. In addition to the 
message elements required under paragraph (a)(2) of this section, the 
unmanned aircraft remote identification message must include the 
following message elements:
    (i) A status which indicates whether the unmanned aircraft is being 
operated beyond visual line of sight.
    (ii) A status which indicates that the unmanned aircraft is being 
operated without a flight coordinator in accordance with Sec.  108.310, 
if applicable.
    (iii) The takeoff location of the unmanned aircraft.
    (4) Range of broadcast. The remote identification message including 
the operational status must be broadcast from the unmanned aircraft at 
a range sufficient to provide situational awareness to others in the 
vicinity of the unmanned aircraft.
    (b) Means of compliance. A standard remote identification unmanned 
aircraft used for operations under this part must meet the requirements 
of an FAA-accepted means of compliance for standard remote 
identification that includes the operational status message element 
described in this section.


Sec.  108.205   Operation in shielded areas.

    No operator may operate an unmanned aircraft as a shielded 
operation except in areas where no manned aircraft are expected to 
operate. Shielded areas include--
    (a) Areas within 50 feet of powerlines and substations, railroad 
tracks, bridges, and pipelines, when permission from the infrastructure 
owner is obtained; or
    (b) Any other area designated by the Administrator.


Sec.  108.210   Operation of multiple unmanned aircraft.

    (a) An operator may only conduct operations at an unmanned 
aircraft-to-flight coordinator ratio of 1:1, except in

[[Page 38371]]

accordance with a method acceptable to the Administrator.
    (b) When operations are conducted at an unmanned aircraft-to-flight 
coordinator ratio greater than 1:1 in accordance with paragraph (a) of 
this section, an operator may not allow a flight coordinator to 
operate, monitor, or otherwise be responsible for the operations of 
more unmanned aircraft than the flight coordinator is capable of 
handling during normal, abnormal, and emergency conditions, determined 
in a method acceptable to the Administrator.
    (c) Pursuant to paragraph (a) of this section, an operator may only 
conduct operations at an unmanned aircraft-to-flight coordinator ratio 
equal to or less than what the manufacturer has specified in the 
operating instructions.


Sec.  108.215   Emergency conditions.

    (a) An operator may request deviation authority from FAA from any 
current authorizations or limitations for the protection of life or 
property if those conditions necessitate the expeditious conduct of 
those operations.
    (b) In an in-flight emergency requiring immediate action, the 
flight coordinator may deviate from any rule of this part to the extent 
required to meet that emergency.
    (c) The operator must comply with the reporting requirements in 
Sec.  108.45(f) of this part following any emergency deviation.


Sec.  108.220   Unmanned aircraft flight restriction.

    No operator may operate an unmanned aircraft under this part within 
an unmanned aircraft flight restriction established in accordance with 
part 74 of this chapter, unless allowed pursuant to part 74, as 
appropriate.

SUBPART C--Operations Personnel


Sec.  108.300   General.

    (a) Operations personnel includes persons identified by the 
operator in the company operations manual as persons required for the 
safe operation of the unmanned aircraft and its associated elements, 
including, but not limited to, performing the following roles or 
tasks--
    (1) Operations supervisor;
    (2) Flight coordinator;
    (3) Unmanned aircraft maintenance or alterations;
    (4) Ground handling;
    (5) Loading and unloading of the unmanned aircraft;
    (6) Servicing or upkeep of systems, including associated elements, 
or
    (7) Establishing flight paths, emergency procedures, and 
operational parameters.
    (b) No operator may allow a person to perform multiple roles 
concurrently if doing so could affect the safety of the operation.


Sec.  108.305   Operations supervisor.

    (a) Each operator must have one or more persons serving in the role 
of an operations supervisor who is qualified through training, 
experience, or expertise.
    (b) The operator must notify FAA within 10 days of any change in 
personnel assigned to the operations supervisor position.
    (c) The person who serves as the operations supervisor must--
    (1) Be knowledgeable of the company policies and procedures; and
    (2) To the extent of their responsibilities, have a full 
understanding of the following material with respect to the operation--
    (i) Aviation safety standards and safe operating practices;
    (ii) Practices for maintaining a secure facility and operations 
area; and
    (iii) The regulatory requirements of this part.


Sec.  108.310   Flight coordinator.

    (a) If the manufacturer's operating instructions require a flight 
coordinator, the operator must designate a flight coordinator prior to 
each flight.
    (b) No operator may allow a person to direct an unmanned aircraft 
during flight unless that person is appropriately qualified and 
authorized by the operator as a flight coordinator, except as provided 
in paragraph (e) of this section for the purpose of obtaining operating 
experience.
    (c) The operator may transfer control from one flight coordinator 
to another flight coordinator during flight if the operator has 
appropriate handoff procedures in its company operations manual.
    (d) Operations personnel assigned as flight coordinator must--
    (1) Take appropriate actions to prevent the unmanned aircraft from 
posing undue hazard to people, aircraft, or property, within their 
control; and
    (2) Maintain situational awareness of the unmanned aircraft and 
direct the unmanned aircraft to maintain compliance with the applicable 
provisions of this chapter.
    (e) No operator may allow a person to serve as a flight coordinator 
of any unmanned aircraft under this part unless that person has at 
least 5 hours of operating experience in the specific make and model of 
unmanned aircraft to be operated. The operating experience must be 
acquired under the direct supervision of--
    (1) A fully qualified flight coordinator;
    (2) An operations supervisor; or
    (3) A person qualified and designated by the operator to ensure 
operations personnel are appropriately trained.
    (f) No operator may allow a person to continue to serve as a flight 
coordinator of any unmanned aircraft unless, within the preceding 12 
calendar months, that person has served as the flight coordinator for 
at least 5 hours of operating experience of an unmanned aircraft of the 
same make and model in which that person is to serve.
    (g) If a flight coordinator's recency of experience lapses, they 
must be requalified by the operator prior to performing the duties of a 
flight coordinator for that make and model of unmanned aircraft.


Sec.  108.315   Personnel knowledge and training.

    (a) Each operator must ensure that all operations personnel have 
completed the applicable training required under this part and that 
they possess the knowledge and skills required to conduct their duties 
specific to their areas of responsibility safely.
    (b) All operations personnel must have general knowledge and skills 
training relevant to their areas of responsibility that covers the 
following subject areas, as applicable:
    (1) Regulations relating to flight operations under this part.
    (2) Airspace classification, operating requirements, and flight 
restrictions affecting unmanned aircraft operations.
    (3) Aviation weather sources and effects of weather on unmanned 
aircraft performance.
    (4) Crew resource management.
    (5) Communication procedures.
    (6) Safe distance criteria.
    (7) Principles of strategic deconfliction and conformance 
monitoring.
    (8) Determining the performance of unmanned aircraft.
    (9) Physiological effects of drugs and alcohol.
    (10) Aeronautical decision-making and judgment.
    (11) Airport and heliport operations.
    (12) Operations at night.
    (13) Assignment and transfer of control.
    (14) Beyond visual line of sight operation strategic and tactical 
risk mitigation strategies and approaches.
    (15) Multi-aircraft operations.
    (16) Command and control system characteristics, functionality, and 
spectrum considerations.

[[Page 38372]]

    (17) Contingency management and UA recovery procedures.
    (18) Population density considerations.
    (19) Air traffic control procedures.
    (c) All operations personnel must have knowledge and skills 
training specific to the make and model of unmanned aircraft to be 
operated relevant to their areas of responsibility that covers the 
following subject areas, as applicable:
    (1) Unmanned aircraft general and operating limitations.
    (2) System configuration and setup.
    (3) Normal and abnormal procedures.
    (4) Emergency procedures.
    (5) Ground handling.
    (6) Loading.
    (7) Maintenance and inspection procedures.
    (8) Preflight procedures.
    (9) Navigation systems appropriate to the operation.
    (10) Detect and avoid procedures.
    (11) Lost link procedures.
    (12) Operations of multiple unmanned aircraft.
    (d) The training required under paragraphs (b) and (c) of this 
section must have been accomplished within the previous 24 calendar 
months for any operations personnel to conduct the assigned 
responsibilities in the listed subject areas. If such training is 
completed in the calendar month before or after the month in which that 
training is required, the person is considered to have completed it in 
the calendar month in which it was required.


Sec.  108.320   Medical condition.

    No person may serve or attempt to serve, and no operator may allow 
or continue to allow a person to serve, in an operations personnel 
position if the person or the operator knows or has reason to know the 
person has a physical or mental condition that would interfere with the 
safe operation of the unmanned aircraft or make the person unable to 
perform the duties required of their position safely.


Sec.  108.325   Alcohol or drugs.

    (a) No person may serve or attempt to serve in an operations 
personnel position--
    (1) Within 8 hours after the consumption of any alcoholic beverage;
    (2) While under the influence of alcohol;
    (3) While using any drug that affects the person's faculties in any 
way contrary to safety; or
    (4) While having an alcohol concentration of 0.04 or greater in a 
blood or breath specimen. Alcohol concentration means grams of alcohol 
per deciliter of blood or grams of alcohol per 210 liters of breath.
    (b) During any period in which a person is serving, ready to serve, 
or immediately available to serve in an operations personnel position, 
the person must, on request of a law enforcement officer, submit to a 
test to indicate the alcohol concentration in the blood or breath, or 
the presence of any drugs in the body, when--
    (1) The law enforcement officer is authorized under State or local 
law to conduct the test or to have the test conducted; and
    (2) The law enforcement officer is requesting submission to the 
test to investigate a suspected violation of State or local law 
governing the same or substantially similar conduct prohibited by 
paragraph (a) of this section.
    (c) Whenever FAA has a reasonable basis to believe that a person 
may have violated paragraph (a) of this section and on request of the 
Administrator, that person must furnish to FAA the results of any 
alcohol or drug test in their possession taken within 4 hours after 
serving or attempting to serve in an operations personnel position, or 
authorize any clinic, hospital, or doctor, or other person or entity to 
release the results to FAA.
    (d) No operator may allow or continue to allow a person to serve in 
an operations personnel position when--
    (1) The operator has actual knowledge that the person is in 
violation of paragraph (a);
    (2) The person refuses to test in accordance with paragraph (b) of 
this section; or
    (3) The person refuses to furnish or authorize the release of test 
results requested by the Administrator in accordance with paragraph (c) 
of this section.


Sec.  108.330   Duty and rest requirements.

    (a) Operations personnel are limited to a maximum 14-hour duty day, 
and to a maximum 50-hour duty week.
    (b) Operations personnel must take a minimum 10-hour continuous 
rest period within the 24 hours prior to reporting for duty.
    (c) Operations personnel must receive a minimum of one day of 
continuous rest, free of all responsibility for work or duty on behalf 
of the operator, per week, each week in which the operator schedules 
them for duty.


Sec.  108.335   Security threat assessment for certain personnel.

    (a) Except as provided in paragraph (c) of this section, a covered 
person described in paragraph (b) of this section must undergo a 
Transportation Security Administration (TSA) security threat assessment 
(STA) consistent with the standards set forth in 49 CFR 1572.103 
through 1572.107 and the procedures in 49 CFR 1572.9 through 1572.11, 
before conducting the described functions or allowed the specified 
access. A covered person is excepted from completing a new STA if they 
hold an STA or security clearance TSA deems comparable to the STA 
required in this paragraph.
    (b) For purposes of this section, a covered person is an 
individual:
    (1) Who performs the functions of an operations supervisor 
described in Sec.  108.305;
    (2) Who performs the functions of a flight coordinator described in 
Sec.  108.310;
    (3) With unescorted access to the aircraft;
    (4) With unescorted access to the cargo loaded for transport on the 
aircraft; or
    (5) Who has access to the control, or the flightpath, of the 
aircraft.
    (c) Applicants for operating permits or certificates must make a 
positive declaration in their application that covered persons have 
successfully completed the STA required in paragraph (a)(1) or (b) of 
this section and provide documentation substantiating such declaration.
    (d) The covered person must renew their TSA STA according to the 
renewal life cycle of their selected mode of vetting.
    (e) If the covered person does not renew the STA, or if TSA revokes 
the covered person's STA, the applicant must remove that person from 
the position and update their application accordingly.
    (f) Failure to remove a covered person who does not hold a valid 
TSA STA consistent with this section may result in revocation of the 
operating permit or operating certificate, as applicable.
    (g) A covered person may seek redress for an adverse STA using the 
procedures

Subpart D--Permitted Operations


Sec.  108.400   Operations under a permit.

    (a) Operators may conduct the following operations using an FAA-
issued operating permit in accordance with this subpart:
    (1) Package delivery.
    (2) Agriculture.
    (3) Aerial surveying.
    (4) Civic interest.
    (5) Unmanned aircraft operations training.
    (6) Demonstration.
    (7) Recreational.
    (8) Flight test.

[[Page 38373]]

    (b) Operators must conduct operations under an operating permit in 
compliance with the requirements of this part and in accordance with 
any authorizations and limitations associated with that permit.
    (c) The Administrator may authorize any other type of operation 
that does not fall under one of the categories listed in paragraph (a) 
of this section.
    (d) Operators are prohibited from transporting hazardous materials 
as defined in 49 CFR 171.8 with an operating permit unless operating in 
accordance with 49 CFR 175.9(b).
    (e) Except for flight test permits, an operator may only hold one 
permit per type of operation listed in paragraph (a) of this section.
    (f) Operators are limited to the types of operations that are 
prescribed by the manufacturer in the operating instructions in 
accordance with Sec.  108.720.


Sec.  108.405   Applications for operating permits.

    (a) An applicant for an operating permit must provide an 
application for an operating permit to FAA in a form and manner 
acceptable to the Administrator.
    (b) The applicant must describe the operation it seeks to conduct 
under this part. The application includes questions, data, and 
documentation requests that verify the applicant's ability to operate 
in compliance with the applicable requirements of this part. The 
application must include the following:
    (1) The applicant's name and contact information (physical address, 
email address, telephone number, and name of individual who serves as 
the point of contact).
    (2) Address of the principal base of operations, if different from 
the address provided for contact information, in accordance with Sec.  
108.30.
    (3) Name of the individual(s) who serve(s) as operations 
supervisor, in accordance with Sec.  108.305, unless operating under a 
recreational permit in accordance with Sec.  108.475.
    (4) The intended type of UAS operation(s), in accordance with Sec.  
108.400(a).
    (5) The intended area(s) of operations, in accordance with Sec.  
108.165.
    (6) Company manual(s), as required under Sec.  108.135.
    (7) A recordkeeping process as required under Sec.  108.40.
    (8) Operator reporting procedures, as required under Sec.  108.45.
    (9) The type(s) of unmanned aircraft to be used in operations, that 
comply with the requirements of Sec.  108.105.
    (10) Additional information the Administrator may determine is 
necessary to evaluate the application.


Sec.  108.410   Duration of permits.

    (a) Unless surrendered, suspended, or revoked earlier, a permit 
issued under this part expires at the end of the 24 months from the 
month in which it is issued.
    (b) Applications for new permits must be made in a form and manner 
acceptable to the Administrator and submitted sufficiently in advance 
to allow adequate processing times to prevent lapses of approval.
    (c) Application for new permits may be made up to 120 days in 
advance of the expiration date of the exiting permit. New permits 
issued during this time period will be valid for a period of 2 years 
beyond the expiration date of the existing permit.
    (d) Permits issued under this part are non-transferrable.


Sec.  108.415   Issuance of an operating permit.

    (a) The Administrator will evaluate an application for an operating 
permit and may request additional information, documentation, or 
demonstration as needed, to supplement the application.
    (b) FAA will issue the operating permit if the Administrator finds 
the applicant has demonstrated its ability to comply with the 
applicable requirements of this part through the application process.
    (c) An FAA-issued operating permit includes the following 
information:
    (1) The operator's name.
    (2) The location of the operator's principal base of operations.
    (3) The permit number.
    (4) The effective date of the permit.
    (5) The expiration date of the permit.
    (6) Type of operation.


Sec.  108.420   Denial, suspension, or revocation of operating permits.

    An application for an operating permit may be denied, or an 
operating permit may be suspended or revoked, if the Administrator 
finds that--
    (a) The applicant or operator does not meet the requirements of 
this part;
    (b) The applicant or operator is not properly or adequately 
equipped or is not able to conduct safe operations under this part;
    (c) The applicant or operator previously held an operating permit, 
operating certificate, or any other FAA certificate which was revoked;
    (d) The applicant or operator intends to fill or fills a key 
management position listed in Sec.  108.300 with an individual who 
exercised control over or who held the same or similar position with an 
operator whose permit or certificate was revoked, or is in the process 
of being revoked, and that individual materially contributed to the 
circumstances causing revocation of the certificate or permit or 
causing the revocation process of the certificate or permit;
    (e) An individual who will have control over or have a substantial 
ownership interest in the operator had the same or similar control or 
interest in an operator whose certificate was revoked, or is in the 
process of being revoked, and that individual materially contributed to 
the circumstances causing revocation or causing the revocation process; 
or
    (f) The applicant or operator engaged in any violation of this 
part.


Sec.  108.425   Amendment of permits.

    (a) The Administrator may amend any permit or any FAA 
authorizations and limitations issued under this part if--
    (1) The Administrator determines that, under 49 U.S.C. 44709 and 
part 13 of this chapter, safety and public interest requires the 
amendment; or
    (2) The operator applies for the amendment and the Administrator 
determines that safety and public interest allows the amendment.
    (b) When the Administrator proposes to issue an order amending, 
suspending, or revoking all or part of any certificate, the procedure 
in Sec.  13.19 of this chapter applies.
    (c) The operator may request to amend an operating permit issued 
under this part by revising an application submitted in accordance with 
Sec.  108.405.
    (d) Within 30 days of receiving an amendment initiated by the 
Administrator, or a denial of an operator's application for amendment, 
the operator may petition the Administrator to reconsider the amendment 
or denial.


Sec.  108.430   Display of permit.

    No operator may operate an unmanned aircraft under this subpart 
unless evidence of having a valid permit under which the operation is 
conducted is available at the point of unmanned aircraft operations 
control and presented upon the request of the Administrator or any 
Federal, State, or local law enforcement officer.


Sec.  108.435   Cybersecurity.

    (a) Each operator must develop and implement cybersecurity policies 
and processes, in order to protect networks, devices, and data from 
unauthorized access and to ensure integrity, accuracy, and reliability 
of the operations.
    (b) The cybersecurity policy required under this section must 
include, at a minimum, processes for--

[[Page 38374]]

    (1) Protecting software, hardware, and network computing 
infrastructure necessary to protect operations from unauthorized 
access;
    (2) Ensuring the operator's employee network access privileges are 
limited to those necessary to fulfill normal job duties;
    (3) Preparing for, responding to, and mitigating the impact of 
cyber-attacks; and
    (4) Ensuring access privileges are turned off and removed for 
former employees.
    (c) The operator must review the cybersecurity policies at least 
annually and revise or update as necessary to reflect changing 
circumstances.


Sec.  108.440   Package delivery operations.

    (a) Except as provided in subpart E, no operator may conduct 
package delivery operations with an unmanned aircraft under this part 
without, or in violation of, a package delivery permit issued in 
accordance with this subpart.
    (b) Operators performing package delivery under this subpart must 
ensure any person performing or directly supervising any of the 
following job functions involving any item for transport on board an 
unmanned aircraft: acceptance, rejection, handling, storage incidental 
to transport, packaging of company materials, or loading--
    (1) Has initial and recurrent training in the recognition of 
hazardous materials acceptable to the administrator; and
    (2) Completes hazardous materials recognition training every 24 
calendar months.
    (c) Operators must ensure that the payload in, on, or suspended 
from the unmanned aircraft is properly secured and does not adversely 
affect the flight characteristics or controllability of the unmanned 
aircraft.
    (d) The operator must provide information about the delivery method 
to each customer and provide the customer instructions to remain clear 
of the unmanned aircraft during delivery by a distance sufficient to 
minimize the risk of injury.
    (e) The operator must ensure proposed delivery areas are free of 
any obstructions that could pose a hazard.
    (f) Package delivery operations must be conducted with fewer than 
100 active unmanned aircraft, including those directly under the 
control of the operator, or conducted through lease agreements with 
other persons, subcontractors, or subsidiaries.
    (g) The unmanned aircraft, and anything attached to or carried by 
the unmanned aircraft, must not have a combined total weight greater 
than 55 pounds.
    (h) Operations are limited to Category 3 population density areas 
or lower, in accordance with Sec.  108.185.
    (i) Operators must request and obtain a limited security program 
from the Transportation Security Administration under 49 CFR 
1544.101(g) before conducting unmanned aircraft system operations.


Sec.  108.445   Agricultural operations.

    (a) Except as provided in subpart E in this part, no operator may 
conduct agricultural operations involving aerial seeding, dusting, 
spraying, fertilizing, crop improvement, or pest control with an 
unmanned aircraft under this part without, or in violation of, an 
agriculture permit issued in accordance with this subpart.
    (b) Operations must be conducted with fewer than 10 active unmanned 
aircraft either directly under the control of the operator, through 
lease agreements with other persons, subcontractors, or subsidiaries.
    (c) Unmanned aircraft and anything attached to or carried by the 
unmanned aircraft must not have a combined total weight greater than 
1,320 pounds.
    (d) Dispensing operations must not be conducted directly over 
people, unless otherwise authorized by the Administrator.
    (e) Operations are limited to Category 1 population density areas, 
in accordance with Sec.  108.185, unless otherwise authorized by the 
Administrator.
    (f) No operator may dispense, or cause to be dispensed, from an 
unmanned aircraft, any material or substance in a manner that creates a 
hazard to persons or property on the surface.
    (g) No operator may dispense, or cause to be dispensed, from an 
unmanned aircraft, any economic poison that is registered with the U.S. 
Department of Agriculture under the Federal Insecticide, Fungicide, and 
Rodenticide Act (7 U.S.C. 135-135k)--
    (1) For a use other than that for which it is registered;
    (2) Contrary to any safety instructions or use limitations on its 
label; or
    (3) In violation of any Federal, State, or local law or regulation.
    (h) Paragraph (g) of this section does not apply to any person 
dispensing economic poisons for experimental purposes under--
    (1) The supervision of a Federal or State agency authorized by law 
to conduct research in the field of economic poisons; or
    (2) A permit from the U.S. Department of Agriculture issued 
pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act (7 
U.S.C. 135 and 135k).
    (i) Operators conducting agricultural operations under this subpart 
must have and keep current a comprehensive training program that is 
tailored for their proposed operation and contains, at a minimum:
    (1) Steps to be taken before starting operations, including survey 
of the area to be worked.
    (2) Safe handling and storage of economic poisons and the proper 
disposal of used containers for those poisons.
    (3) The general effects of economic poisons and agricultural 
chemicals on plants, animals, and persons, with emphasis on those 
normally used in the areas of intended operations; and the precautions 
to be observed in using poisons and chemicals.
    (4) Primary symptoms of poisoning of persons from economic poisons, 
the appropriate emergency measures to be taken, and the location of 
poison control centers.
    (5) Performance capabilities and operating limitations of the 
unmanned aircraft to be used.
    (6) Safe flight and application procedures.
    (j) Operators must ensure that all operations personnel supervising 
or participating in an agricultural unmanned aircraft operation have 
satisfactorily completed the operators training program required 
pursuant to paragraph (i) of this section.


Sec.  108.450   Aerial surveying operations.

    (a) Except as provided in subpart E, no operator may conduct 
photography, videography, mapping, inspecting, or patrolling operations 
with an unmanned aircraft under this part without, or in violation of, 
an aerial surveying permit issued in accordance with this subpart.
    (b) Operations must be conducted with fewer than 25 active unmanned 
aircraft either directly under the control of the operator, through 
lease agreements with other persons, subcontractors, or subsidiaries.
    (c) Unmanned aircraft and anything attached to or carried by the 
unmanned aircraft must not have a combined total weight greater than 
110 pounds.
    (d) Operations are limited to Category 3 population density areas 
or lower, in accordance with Sec.  108.185.


Sec.  108.455   Civic interest operations.

    (a) Except as provided in subpart E of this part, no operator may 
conduct operations in support of civic interest with an unmanned 
aircraft under this part without, or in violation of, a civic

[[Page 38375]]

interest permit issued in accordance with this subpart. Civic interest 
operations consist of--
    (1) Forest and wildlife conservation, including wildfire recovery, 
wildlife conservation, and tracking climate change; and
    (2) Operations in support of public safety, including fire, 
accident, and disaster response where the operator has coordinated and 
deconflicted operations with the law enforcement or government 
emergency management agency responsible for the incident response in 
advance and throughout the duration of the operation.
    (b) Operations must be conducted with fewer than 25 active unmanned 
aircraft either directly under the control of the operator, through 
lease agreements with other persons, subcontractors, or subsidiaries.
    (c) Unmanned aircraft and anything attached to or carried by the 
unmanned aircraft must not have a combined total weight greater than 
110 pounds.
    (d) Operations must be conducted by an entity contracted to a 
Federal, State, local, Tribal, or territorial government for the 
performance of the civic interest operation.
    (e) Operations are limited to Category 3 population density areas 
or lower, in accordance with Sec.  108.185, unless otherwise authorized 
by the Administrator.
    (f) Notwithstanding the restrictions in paragraphs (e) of this 
section and Sec.  108.185, operations may be conducted over any 
population density to the extent necessary to safeguard lives in 
imminent threat.


Sec.  108.460  Unmanned aircraft operations training.

    (a) No operator may conduct unmanned aircraft operations training 
with an unmanned aircraft under this part without, or in violation of, 
an unmanned aircraft operations training permit issued in accordance 
with this subpart except that an unmanned aircraft operations training 
related to another permit type may be conducted under that permit. If 
unmanned aircraft operations training is conducted under a permit for 
another type of operation, the requirements of that permit apply to the 
unmanned aircraft operations training in the same manner and to the 
same extent as they apply to the operation itself.
    (b) Unmanned aircraft and anything attached to or carried by the 
unmanned aircraft must not have a combined total weight greater than 
1,320 pounds, unless otherwise authorized by the Administrator.
    (c) Operations must be conducted with fewer than 10 active unmanned 
aircraft either directly under the control of the operator, through 
lease agreements with other persons, subcontractors, or subsidiaries, 
unless otherwise authorized by the Administrator.
    (d) Operations are limited to Category 1 population density areas, 
in accordance with Sec.  108.185, unless otherwise authorized by the 
Administrator.


Sec.  108.465  Demonstration operations.

    (a) No operator may conduct aerial performances such as air races, 
air shows, sales demonstrations, and exhibitions or the practice and 
preparations for related events, with an unmanned aircraft under this 
part without, or in violation of, a demonstration permit issued in 
accordance with this subpart.
    (b) Operations must be conducted with fewer than 50 active unmanned 
aircraft, unless otherwise authorized by the Administrator.
    (c) Unmanned aircraft and anything attached to or carried by the 
unmanned aircraft must not have a combined total weight greater than 
110 pounds, unless otherwise authorized by the Administrator.
    (d) Operations are limited to Category 2 population density areas 
or lower, in accordance with Sec.  108.185, unless otherwise authorized 
by the Administrator.
    (e) Operations must be conducted at least 500 feet away from any 
non-participating persons, unless otherwise authorized by the 
Administrator.


Sec.  108.470  Flight test operations.

    (a) No operator may conduct operations involving flight tests of 
new unmanned aircraft designs, modifications, or other development-
related operations with an unmanned aircraft under this part without, 
or in violation of, a flight test permit issued in accordance with this 
subpart.
    (b) Flight test operations may only be conducted by unmanned 
aircraft manufacturers qualified under subpart G of this part or 
accredited educational institutions.
    (c) Operations are limited to Category 1 population density areas, 
in accordance with Sec.  108.185, unless otherwise authorized by the 
Administrator.
    (d) Unmanned aircraft and anything attached to or carried by the 
unmanned aircraft must not have a combined total weight greater than 
1,320 pounds, unless otherwise authorized by the Administrator.
    (e) Section 108.105(a) does not apply to operations conducted under 
a flight test permit.


Sec.  108.475  Recreational permit operations.

    (a) No person may conduct non-commercial or recreational operations 
with an unmanned aircraft under this part without, or in violation of, 
a recreational permit issued in accordance with this subpart.
    (b) Operations are limited to Category 3 population density areas 
or lower, in accordance with Sec.  108.185.
    (c) Unmanned aircraft and anything attached to or carried by the 
unmanned aircraft must not have a combined total weight greater than 55 
pounds, unless otherwise authorized by the Administrator.
    (d) Flights must not exceed 10 nautical miles from the flight 
coordinator.
    (e) Operations must be conducted with only one active unmanned 
aircraft.
    (f) Operations under a recreational permit do not have to comply 
with the following provisions of this part--
    (1) The requirement to hold a company operations manual pursuant to 
Sec. Sec.  108.130(a)(4) and 108.135;
    (2) The experience requirements specified in Sec.  108.310(e) and 
(f);
    (3) The requirement to have a principal base of operations pursuant 
to Sec.  108.30, except that the operator shall provide a permanent 
mailing address (including ZIP code), or if the permanent mailing 
address includes a post office box number, then the person's current 
residential address;
    (4) The requirement to designate an operations supervisor pursuant 
to Sec.  108.305;
    (5) The requirement to develop and implement cybersecurity policies 
pursuant to Sec.  108.435; and
    (6) The duty and rest requirements of Sec.  108.330.

Subpart E--Certificated Operations


Sec.  108.500  Operations under a certificate.

    (a) Operators can conduct the following operations using an FAA-
issued operating certificate in accordance with this subpart:
    (1) Package delivery.
    (2) Agriculture.
    (3) Aerial surveying.
    (4) Civic interest.
    (b) Operators must conduct operations with an operating certificate 
in compliance with the requirements of this part and in accordance with 
any authorizations and limitations associated with that certificate.
    (c) Any type of operation that does not fall under one of the 
categories

[[Page 38376]]

listed in paragraph (a) of this section can be authorized by the 
Administrator, subject to any limitations issued by the Administrator 
in conjunction with the certificate.
    (d) Operators may only conduct operations for the types of 
operations that are prescribed by the manufacturer in the operating 
instructions in accordance with Sec.  108.720.


Sec.  108.505  Applications for operating certificates.

    (a) An applicant for an operating certificate must provide an 
application for an operating certificate to FAA in a form and manner 
acceptable to the Administrator.
    (b) The applicant must describe the operation it seeks to conduct 
under this part. The application includes any questions, data, 
demonstration, and documentation requests from FAA that verify the 
applicant's ability to operate in compliance with the applicable 
requirements of this part. The application must address the following:
    (1) The applicant's name and contact information (physical address, 
email address, and telephone number).
    (2) Address of the principal base of operations, if different from 
the address provided for contact information, in accordance with Sec.  
108.30.
    (3) Name of the individual who serves as operations supervisor, in 
accordance with Sec.  108.305.
    (4) The intended type of UAS operations, in accordance with Sec.  
108.500(a).
    (5) The intended area(s) of operation, in accordance with Sec.  
108.165.
    (6) Company manual(s), as required under Sec.  108.135.
    (7) A recordkeeping plan as required under Sec.  108.40.
    (8) Operator reporting procedures, as required under Sec.  108.45.
    (9) The type(s) of unmanned aircraft to be used in operations that 
comply with the requirements of Sec.  108.105.
    (10) A training program, as required under Sec. Sec.  108.540 and 
108.315.
    (11) Communication and ground risk assessments, as required under 
Sec.  108.550.
    (12) Safety management systems, as required under Sec.  108.560.
    (13) Hazardous materials procedures, information, and training 
program, as required under Sec.  108.570.
    (14) Procedures permitting the use of inoperative equipment, 
pursuant to Sec.  108.555.
    (15) Plan for complying with duty and rest requirements, pursuant 
to Sec.  108.330.
    (16) For those operators proposing to engage in package delivery, 
documentation of their citizenship status.
    (17) Additional information the Administrator may determine is 
necessary to evaluate the application.


Sec.  108.510  Duration of certificates.

    (a) Unless suspended or revoked, an operating certificate issued 
under this part is effective until the operator surrenders it to FAA, 
or the operator fails to meet the requirements of Sec.  108.530.
    (b) Operating certificates issued under this part are non-
transferrable.


Sec.  108.515  Issuance of an operating certificate.

    (a) The Administrator will evaluate each application for an 
operating certificate and may request additional information, 
documentation, or demonstration as needed, to supplement the 
application.
    (b) An applicant may be issued an operating certificate if the 
Administrator--
    (1) Finds that the applicant has demonstrated their ability to 
comply with the applicable requirements of this part; and
    (2) Determines the applicant is properly and adequately equipped 
and can conduct safe operations.
    (c) An FAA-issued operating certificate includes all the following 
information:
    (1) The operator's name.
    (2) The location of the operator's principal base of operations.
    (3) The certificate number.
    (4) The effective date of the certificate.
    (5) Type(s) of operations.
    (d) An operator may be authorized to conduct multiple types of 
operations under a single operating certificate issued under this 
subpart.


Sec.  108.520  Denial, suspension, or revocation of operating 
certificates.

    An application for an operating certificate may be denied, or an 
operating certificate may be suspended or revoked, if the Administrator 
finds that--
    (a) The applicant or operator does not meet the requirements of 
this part;
    (b) The applicant or operator is not properly or adequately 
equipped or is not able to conduct safe operations under this part;
    (c) The applicant or operator previously held an operating permit, 
operating certificate, or any other FAA certificate which was revoked;
    (d) The applicant or operator intends to or fills a key management 
position listed in Sec.  108.300 with an individual who exercised 
control over or who held the same or similar position with an operator 
whose permit or certificate was revoked, or is in the process of being 
revoked, and that individual materially contributed to the 
circumstances causing revocation of the certificate or permit or 
causing the revocation process of the certificate or permit;
    (e) An individual who will have control over or have a substantial 
ownership interest in the operator had the same or similar control or 
interest in an operator whose certificate was revoked, or is in the 
process of being revoked, and that individual materially contributed to 
the circumstances causing revocation or causing the revocation process; 
or
    (f) The applicant or operator engaged in any violation of this 
part.


Sec.  108.525  Amendment of certificates.

    (a) The Administrator may amend any certificate or any FAA 
authorizations and limitations issued under this part if--
    (1) the Administrator determines that, under 49 U.S.C. 44709 and 
part 13 of this chapter, safety in air commerce and the public interest 
requires the amendment; or
    (2) the operator applies for the amendment and the Administrator 
determines that safety in the public interest allows the amendment.
    (b) When the Administrator proposes to issue an order amending, 
suspending, or revoking all or part of any certificate, the procedure 
in Sec.  13.19 of this chapter applies.
    (c) The operator may request to amend an operating certificate 
issued under this part by revising an application submitted in 
accordance with Sec.  108.505.
    (d) Within 30 calendar days of receiving an amendment initiated by 
the Administrator, or a denial of an operator's application for 
amendment, the operator may petition the Administrator to reconsider 
the amendment or denial.


Sec.  108.530  Recency of operation.

    (a) Unless otherwise authorized by the Administrator, no operator 
may conduct an operation for which it is authorized to perform under 
their certificate unless the operator has conducted that operation 
within the preceding 12 calendar months.
    (b) If an operator does not conduct an operation for which it is 
authorized within 12 calendar months, the operator must receive 
authorization from FAA to resume operations. In providing authorization 
to resume operations, FAA may require inspections or reexaminations to 
determine whether

[[Page 38377]]

the operator remains properly and adequately equipped and able to 
conduct a safe operation.


Sec.  108.535  Cybersecurity.

    (a) Each operator must develop and implement cybersecurity policies 
and processes, in order to protect networks, devices, and data from 
unauthorized access and to ensure integrity, accuracy, and reliability 
of the operations.
    (b) The cybersecurity policy required under this section must 
include, at a minimum, processes for--
    (1) Protecting software, hardware, and network computing 
infrastructure necessary to protect operations from unauthorized 
access;
    (2) Ensuring the operator's employee network access privileges are 
limited to those necessary to fulfill normal job duties;
    (3) Preparing for, responding to, and mitigating the impact of 
cyber attacks;
    (4) Ensuring access privileges are turned off and removed for 
former employees.
    (c) The operator must review the cybersecurity policies at least 
annually and revise or update as necessary to reflect changing 
circumstances.


Sec.  108.540  Training program.

    (a) Each operator must establish and implement a training program, 
acceptable to the Administrator, that satisfies the requirements of 
subpart C of this part and submitted in accordance with Sec.  
108.505(b)(10). The training program must include initial and recurrent 
training in accordance with Sec.  108.315 that ensures operations 
personnel remain proficient in each unmanned aircraft, position, and 
type of operation in which they serve.
    (b) The operator must ensure the training facilities, personnel, 
training material, forms, instructions, and procedures used to conduct 
the training required by this part are appropriate and current.
    (c) The training facilities, personnel, training material, forms, 
and instructions required under this section may be satisfied using 
contracted personnel or services.
    (d) The operator must designate a person or persons who are 
responsible for ensuring, and qualified to determine, operations 
personnel are appropriately trained. The designated person must certify 
as to the proficiency and knowledge of the operations personnel being 
trained or evaluated and that certification be made a part of the 
operations person's record in accordance with Sec.  108.45.
    (e) If the Administrator finds that revisions are necessary for the 
continued adequacy of a training program that has been accepted, the 
operator must, after notification by the Administrator, make any 
changes in the program deemed necessary by the Administrator.
    (f) Within 30 calendar days after the operator receives a notice 
pursuant to paragraph (e) of this section, the operator may file a 
petition to reconsider the notice with the Administrator. The filing of 
a petition to reconsider stays the notice pending a decision by the 
Administrator. If the Administrator finds that there is an emergency 
that requires immediate action in the interest of safety, the 
Administrator may, upon a statement of the reasons, require a change 
effective without stay.


Sec.  108.545  Validation tests.

    (a) Each operator must show they can conduct operations safely and 
in compliance with applicable regulatory standards. Unless otherwise 
authorized by the Administrator, validation tests are required--
    (1) During the application process for authority to conduct 
operations for an operating certificate under this subpart;
    (2) For the addition of a new make or model of an unmanned aircraft 
if an unmanned aircraft of the same make and model or similar design 
has not been previously validated in operations under this part;
    (3) For special performance or unique operational authorizations as 
determined by the Administrator; and
    (4) For demonstrations of operations of unmanned aircraft-to-flight 
coordinator ratio greater than 1:1, in accordance with Sec.  108.210.
    (b) All validation tests must be conducted under the appropriate 
operating and maintenance requirements of this part that would apply if 
the applicant were fully certificated.
    (c) Validation tests may be performed under a temporary 
authorization issued by the Administrator for the purposes of 
conducting validation testing.


Sec.  108.550  Communication and ground risk assessments.

    (a) Operations under this subpart must be conducted in accordance 
with a communication assessment acceptable to the Administrator that 
includes a command and control analysis for the area of operations, to 
include coverage and availability, a monitoring plan, and lost link 
procedures. This communication assessment must be submitted in 
accordance with Sec.  108.505(b)(11).
    (b) Operations under this subpart must be conducted in accordance 
with a ground risk assessment acceptable to the Administrator that 
includes pedestrian and moving vehicle analysis and consider terrain 
and human-made obstacles that the operator intends to overfly. This 
ground risk assessment must be submitted in accordance with Sec.  
108.505(b)(11).


Sec.  108.555  Inoperative equipment.

    (a) No operator may conduct an operation under this part with an 
unmanned aircraft system with inoperative equipment or equipment that 
has failed its initial performance checks unless all the following 
requirements are met:
    (1) The inoperative equipment is not--
    (i) Indicated as necessary by the manufacturer of the unmanned 
aircraft pursuant to the manufacturer's operating instructions;
    (ii) Required by subpart H of this part; or
    (iii) Required for specific operations under this part.
    (2) The inoperative equipment is removed from the unmanned 
aircraft, deactivated, or otherwise determined not to interfere with 
the safe operation of the unmanned aircraft.
    (3) A determination is made by a person who is authorized by the 
operator to perform maintenance on the unmanned aircraft that the 
inoperative equipment does not constitute a hazard to the unmanned 
aircraft.
    (4) Information identifying the inoperable equipment is made 
available to the appropriate operations personnel.
    (b) The operator's procedures permitting the use of inoperative 
equipment must be submitted in accordance with Sec.  108.505(b)(14).


Sec.  108.560  Safety management system.

    (a) General. Operators authorized to conduct operations as a 
certificated operator under this subpart must develop, implement, and 
keep current a safety management system that meets the requirements of 
part 5 of this chapter. This safety management system must be submitted 
in accordance with Sec.  108.505(b)(12).
    (b) Exceptions. Organizations with a sole individual performing all 
necessary operations functions in the conduct and execution related to 
the safe operation of the unmanned aircraft are not required to comply 
with the following provisions: Sec. Sec.  5.21(a)(4) and (5), 5.21(c), 
5.23(a)(2) and (3) and (b), 5.25(b)(3) and (c), 5.27(a) and (b), 
5.71(a)(7), 5.93, and 5.97(d) of this chapter.
    (c) Availability. An operator must make available to the 
Administrator, upon request, all necessary information

[[Page 38378]]

and data that demonstrates that the operator has a safety management 
system that meets the requirements set forth in part 5 of this chapter.


Sec.  108.565  Package delivery operations.

    (a) Except as provided in subpart D of this part, no operator may 
conduct package delivery operations with an unmanned aircraft under 
this part without, or in violation of, a package delivery certificate 
issued in accordance with this subpart.
    (b) Operators must ensure that the payload in, on, or suspended 
from the unmanned aircraft is properly secured and does not adversely 
affect the flight characteristics or controllability of the unmanned 
aircraft.
    (c) The unmanned aircraft, and anything attached to or carried by 
the unmanned aircraft, must not have a combined total weight greater 
than 110 pounds.
    (d) The operator must ensure proposed delivery areas are free of 
any obstructions that could pose a hazard.
    (e) The operator must provide information about the delivery method 
to each customer and provide the customer instructions to remain clear 
of the unmanned aircraft during delivery by a distance sufficient to 
minimize the risk of injury.
    (f) Operators must request and obtain a limited security program 
from the Transportation Security Administration under 49 CFR 
1544.101(g) before conducting UAS operations.


Sec.  108.570  Hazardous materials.

    (a) Each operator conducting package delivery operations under this 
subpart must receive from the Administrator--
    (1) An authorization permitting, or prohibiting, the acceptance, 
handling, and transporting of hazardous materials; and
    (2) An authorization to unload hazardous materials by releasing or 
dropping such materials above ground level if the operator wishes to 
conduct this type of operation.
    (b) Each operator conducting package delivery operations under this 
subpart must have procedures and information to assist each person 
performing or directly supervising any of the following job functions 
involving any item for transport on board an unmanned aircraft:
    (1) Acceptance of an item for transport.
    (2) Rejection of an item for transport.
    (3) Handling of an item for transport.
    (4) Storage incidental to transport.
    (5) Packaging of an item for transport.
    (6) Loading of an item for transport.
    (c) The procedures and information required in paragraph (b) of 
this section must include--
    (1) Procedures for identifying packages that are marked or labeled 
as containing hazardous materials or that show signs of containing 
undeclared hazardous materials;
    (2) Procedures for rejecting packages that do not conform to the 
Hazardous Materials Regulations in 49 CFR parts 171 through 180 or that 
appear to contain undeclared hazardous materials;
    (3) Procedures for complying with the hazardous materials incident 
reporting requirements of 49 CFR 171.15 and 171.16, and discrepancy 
reporting requirements of 49 CFR 175.31;
    (4) Procedures for complying with paragraph (d) of this section; 
and
    (5) For an operator with an authorization in paragraph (a)(1) of 
this section to permit the acceptance, handling, and transportation of 
hazardous materials, the procedures and information must also include--
    (i) Procedures to ensure that packages containing hazardous 
materials are properly offered and accepted in compliance with 49 CFR 
parts 171 through 180;
    (ii) Procedures to properly handle, store, package, load, and carry 
packages containing hazardous materials on board an unmanned aircraft 
in compliance with 49 CFR parts 171 through 180;
    (iii) Procedures to properly handle, package, and transport 
aircraft replacement parts, consumable materials, or other items 
regulated by 49 CFR parts 171 through 180; and--
    (iv) Procedures for compliance with the notice requirements of 49 
CFR 175.33.
    (d) The operator must ensure each person authorized in subpart F of 
this part to maintain, repair, and alter the unmanned aircraft is 
notified of whether any materials they handle are hazardous materials.
    (e) Each operator conducting package delivery operations under this 
subpart must establish and implement a hazardous materials training 
program approved by the Administrator. The training program must be 
designed to ensure that each person performing or directly supervising 
any of the job functions listed in paragraph (b) of this section is 
trained to comply with all applicable requirements of this subpart, 
including hazardous materials package recognition, and 49 CFR parts 171 
through 180.
    (f) Each operator conducting package delivery operations under this 
subpart must provide initial hazardous materials training and recurrent 
hazardous materials training to each person performing or directly 
supervising any of the job functions specified in paragraph (b) of this 
section.
    (g) No person, including independent contractors, subcontractors, 
and direct employees of the operator, may perform or directly supervise 
the job functions listed in paragraph (b) of this section on behalf of 
the operator unless that person has satisfactorily completed the 
initial operator's hazardous materials training program within 30 days 
from the date of hire or start of a related job function, and recurrent 
training every 24 calendar months thereafter.
    (h) A person who has not yet satisfactorily completed the required 
initial operator's hazardous materials training program within 30 days 
from the date of hire or start of a related job function listed in 
paragraph (b) of this section, may perform those job functions for not 
more than 30 days from the date of hire or start of a related job 
function, if the person is under the direct visual supervision of a 
person who is authorized by the operator to supervise that person and 
who has successfully completed the operator's FAA-approved initial or 
recurrent training program within the past 24 months.
    (i) Each operator using a person under the exception in paragraph 
(h) of this section must maintain a record for that person. The records 
must be available upon request at the location where the trained person 
performs or directly supervises the job function specified in paragraph 
(b) of this section. The record must include--
    (1) A signed statement from an authorized representative of the 
operator authorizing the use of the person in accordance with the 
exception;
    (2) The date of hire or change in job function;
    (3) The person's name and assigned job function;
    (4) The name of the supervisor of the job function; and
    (5) The date the person is to complete hazardous materials training 
in accordance with the operator's approved hazardous materials training 
program.
    (j) An operator that uses or assigns a person to perform or 
directly supervise a job function specified in paragraph (b) of this 
section, when that person also performs or directly supervises the same 
job function for another package delivery operator under this subpart, 
part 121 certificate holder, or part 135 certificate holder, need only 
train that person in its own policies and

[[Page 38379]]

procedures regarding those job functions, if all of the following are 
met:
    (1) The operator using this exception receives written verification 
from the person designated to hold the training records representing 
the other package delivery operator, part 121 certificate holder, or 
part 135 certificate holder that the person has satisfactorily 
completed hazardous materials training for the specific job function 
under the other package delivery operator, part 121 certificate holder, 
or part 135 certificate holder's FAA approved hazardous material 
training program.
    (2) The package delivery operator, part 121 certificate holder, or 
part 135 certificate holder who trained the person has the same part 
108 authorization in paragraph (a) of this section, equivalent part 121 
operations specification, or equivalent part 135 operations 
specifications regarding the acceptance, handling, and transport of 
hazardous materials as the operator using this exception.
    (k) A person who satisfactorily completes recurrent hazardous 
materials training in the calendar month before, or the calendar month 
after, the month in which the recurrent training is due, the subsequent 
calendar renewal month will remain the same. If the person completes 
this training earlier than the month before it is due, the month of the 
completion date becomes their new anniversary month.
    (l) Each operator must develop and maintain processes to conduct 
safety risk assessments, as outlined in Sec.  5.55 of this chapter, in 
support of an authorization or amendments thereto, permitting the 
acceptance, handling, and transportation of hazardous materials in 
paragraph (a)(1) of this section and, when appropriate, the 
authorization in paragraph (a)(2) of this section. Safety risk 
assessments must be submitted to FAA and be acceptable to the 
Administrator. Safety risk assessments must also be inclusive of risks 
to people and property on the ground resulting from the carriage of 
hazardous materials.


Sec.  108.575  Agricultural operations.

    (a) Except as provided in subpart D of this part, no operator may 
conduct agricultural operations with an unmanned aircraft under this 
part without, or in violation of, a certificate issued in accordance 
with this subpart. Agricultural operation means the operation of an 
aircraft for the purpose of--
    (1) Dispensing any economic poison;
    (2) Dispensing any other substance intended for plant nourishment, 
soil treatment, propagation of plant line, or pest control; or
    (3) Engaging in dispensing activities directly affecting 
agriculture, horticulture, or forest preservation, but not including 
the dispensing of live insects.
    (b) Dispensing operations must not be conducted directly over 
people, unless otherwise authorized by the Administrator.
    (c) Operations are limited to Category 3 population density areas 
or lower, in accordance with Sec.  108.185, unless otherwise authorized 
by the Administrator.
    (d) No operator may dispense, or cause to be dispensed, from an 
unmanned aircraft, any material or substance in a manner that creates a 
hazard to persons or property on the surface.
    (e) No operator may dispense, or cause to be dispensed, from an 
unmanned aircraft, any economic poison that is registered with the U.S. 
Department of Agriculture under the Federal Insecticide, Fungicide, and 
Rodenticide Act (7 U.S.C. 135 and 135k)--
    (1) For a use other than that for which it is registered;
    (2) Contrary to any safety instructions or use limitations on its 
label; or
    (3) In violation of any Federal, State, or local law or regulation.
    (f) Paragraph (e) of this section does not apply to any operator 
dispensing economic poisons for experimental purposes under--
    (1) The supervision of a Federal or State agency authorized by law 
to conduct research in the field of economic poisons; or
    (2) A permit from the U.S. Department of Agriculture issued 
pursuant to the Federal Insecticide, Fungicide, and Rodenticide Act (7 
U.S.C. 135 and 135k).
    (g) Operators conducting agricultural operations under this subpart 
must have and keep current a comprehensive training program that is 
tailored for their proposed operation and contains, at a minimum--
    (1) Steps to be taken before starting operations, including survey 
of the area to be worked;
    (2) Safe handling and storage of economic poisons and the proper 
disposal of used containers for those poisons;
    (3) The general effects of economic poisons and agricultural 
chemicals on plants, animals, and persons, with emphasis on those 
normally used in the areas of intended operations; and the precautions 
to be observed in using poisons and chemicals;
    (4) Primary symptoms of poisoning of persons from economic poisons, 
the appropriate emergency measures to be taken, and the location of 
poison control centers;
    (5) Performance capabilities and operating limitations of the 
unmanned aircraft to be used; and
    (6) Safe flight and application procedures.
    (h) Operators must ensure that all operations personnel supervising 
or participating in an agricultural unmanned aircraft operation have 
completed the operator's training program required pursuant to 
paragraph (g) of this section.


Sec.  108.580  Aerial surveying operations.

    (a) Except as provided in subpart D of this part, no operator may 
conduct photography, videography, mapping, inspecting, or patrolling 
operations with an unmanned aircraft under this part without, or in 
violation of, an aerial surveying certificate issued in accordance with 
this subpart.
    (b) Operations at a gross weight of more than 110 pounds are 
limited to Category 4 population density areas or lower, in accordance 
with Sec.  108.185, unless otherwise authorized by the Administrator.


Sec.  108.585  Civic interest operations.

    (a) Except as provided in subpart D of this part, no operator may 
conduct operations in support of civic interest with an unmanned 
aircraft under this part without, or in violation of, a civic interest 
certificate issued in accordance with this subpart. Operations in the 
civic interest operations consists of--
    (1) Forest and wildlife conservation, including wildfire recovery, 
wildlife conservation, and tracking climate change; and
    (2) Operations in support of public safety, including fire, 
accident, and disaster response where the operator has coordinated and 
deconflicted operations with the law enforcement or government 
emergency management agency responsible for the incident response in 
advance and throughout the duration of the operation.
    (b) Operations must be conducted by an entity contracted to a 
Federal, State, local, Tribal, or territorial government for the 
performance of the civic interest operation.
    (c) Operations at a gross weight of more than 110 pounds are 
limited to Category 4 population density areas or lower, in accordance 
with Sec.  108.185, unless otherwise authorized by the Administrator.
    (d) Notwithstanding the restrictions in paragraph (c) of this 
section and

[[Page 38380]]

Sec.  108.185, operations may be conducted over any population density 
to the extent necessary to safeguard lives in imminent threat.

Subpart F--Maintenance and Alterations


Sec.  108.600  General.

    (a) This subpart prescribes rules for the maintenance and 
alterations of unmanned aircraft systems operating under this part.
    (b) This subpart does not apply to--
    (1) The maintenance or alterations of automated data service 
provider equipment approved under part 146 of this chapter;
    (2) The maintenance or alteration of an unmanned aircraft and its 
associated elements that is operated and maintained in accordance with 
parts 43 and 91 of this chapter; or
    (3) The maintenance or alterations of associated elements not under 
the direct control of the operator.


Sec.  108.605  Persons performing maintenance and alterations.

    No person may perform maintenance or alteration to an unmanned 
aircraft system with an airworthiness acceptance until the operator 
has--
    (a) Determined the person is qualified, through basic skills and 
knowledge obtained in accordance with Sec.  108.315 to perform the 
maintenance or alteration; and
    (b) Authorized the person to perform the maintenance or alteration.


Sec.  108.610  Unmanned aircraft maintenance.

    (a) Each operator authorizing or performing maintenance on unmanned 
aircraft system must ensure the methods, techniques, and practices 
prescribed in the unmanned aircraft manufacturer's maintenance 
instructions, as provided in Sec.  108.720(a)(2), are used and ensure 
the unmanned aircraft system remains in a condition for safe operation.
    (b) Each operator of an unmanned aircraft must have the unmanned 
aircraft system inspected in accordance with the methods, and at the 
intervals, prescribed in the unmanned aircraft manufacturer's 
inspection criteria in the maintenance instructions.
    (c) Except as provided in Sec.  108.555, prior to operating the 
unmanned aircraft system each operator of an unmanned aircraft system 
must have any inoperative equipment and any items not in a condition 
for safe operation repaired as prescribed in the manufacturer's 
maintenance instructions.


Sec.  108.615  Life-limited parts.

    (a) No person may operate an unmanned aircraft with parts installed 
that have exceeded the life limits specified in the manufacturer's 
maintenance instructions.
    (b) The operator must track the status of life-limited parts using 
a system that uniquely identifies the part and tracks the associated 
life-limiting factor of the part, through removals and reinstallations.
    (c) When a life-limited part is removed that has reached its life 
limit or is not intended to be re-installed, the operator must 
disposition the part in a manner that clearly identifies the part's 
life-limited status or prevents its reinstallation. This includes, but 
is not limited to the following:
    (1) Any method that uniquely identifies the part and its status, 
such as a tag, record, document, or other marking, that is made or 
attached to the life-limited part.
    (2) Segregation of the life-limited part by physically storing it 
separately from other parts that are eligible for installation.
    (3) Mutilation of the life-limited part that renders the part 
beyond economical repair and incapable of being reworked to appear to 
be in a condition for safe operation.
    (d) An operator who removes a life-limited part and later sells or 
otherwise transfers that part must transfer the part with the tag, 
record, document, or other marking that clearly identifies the life-
limited status of the part, unless the part is mutilated before it is 
sold or transferred.


Sec.  108.620  Unmanned aircraft batteries.

    (a) Each operator using batteries as a required in-flight power 
source must have a battery monitoring program.
    (b) Operators must remove from service any batteries that indicate 
significant degradation or inadequate levels of performance.


Sec.  108.625  Repairs and alterations.

    (a) The operator must accomplish repairs or alterations to unmanned 
aircraft systems under this part in accordance with procedures 
authorized by the manufacturer as provided in Sec.  108.755.
    (b) The replacement of parts or assemblies with identical or 
alternative parts or assemblies specified by the manufacturer is not 
considered a repair or alteration for the purposes of this section.


Sec.  108.630  Operation after maintenance or alterations.

    (a) No person may operate any unmanned aircraft system that has 
undergone maintenance or alteration unless--
    (1) The unmanned aircraft system has been approved for return to 
service by a person authorized by the operator; and
    (2) The operator ensures the maintenance record entry required by 
108.40(d) is completed.
    (b) No person may operate an unmanned aircraft system that has been 
maintained or altered in a manner that may have appreciably changed the 
flight characteristics or substantially affected the operation of the 
unmanned aircraft system until an operational check of the unmanned 
aircraft has been performed and it is found to be in a condition for 
safe operation.
    (c) Flights performed as part of an operational check under 
paragraph (b) may be conducted under the operator's existing permit or 
certificate but must not be conducted over people or moving vehicles.

Subpart G--Procedures for Unmanned Aircraft System Airworthiness 
Acceptance


Sec.  108.700  Airworthiness acceptance generally.

    (a) Purpose. This subpart prescribes procedures and standards for 
airworthiness acceptance of unmanned aircraft systems under this part.
    (b) Eligibility. To be eligible to apply for airworthiness 
acceptance, the manufacturer--
    (1) Must be a manufacturer of an unmanned aircraft system in--
    (i) The United States; or
    (ii) A country with which the United States has a Bilateral 
Airworthiness Agreement addressing unmanned aircraft systems or 
Bilateral Aviation Safety Agreement with associated Implementation 
Procedures for Airworthiness addressing unmanned aircraft systems, or 
an equivalent airworthiness agreement; and
    (2) The manufacturer's authorized representative or agent must be 
trained and certified on the requirements associated with the 
declaration of compliance by an organization that certifies and trains 
quality assurance staff in accordance with an FAA-accepted consensus 
standard.


Sec.  108.705  Means of compliance.

    (a) Means of compliance generally.
    (1) A voluntary consensus standards body may submit a voluntary 
consensus standard to FAA for acceptance as a means of compliance for 
satisfying a requirement of this subpart or subpart H of this part 
other than requirements pertaining to noise.
    (2) If the Administrator determines the voluntary consensus 
standards

[[Page 38381]]

body's proposed means of compliance satisfies the requirements of this 
subpart and subpart H of this part for which it has been submitted, the 
Administrator will notify the voluntary consensus standards body that 
the means of compliance has been accepted.
    (3) The Administrator will publish a document in the Federal 
Register announcing the acceptance of the means of compliance, as 
proposed or with modification, to the public.
    (b) Means of compliance for noise.
    (1) A voluntary consensus standards body may submit a voluntary 
consensus standard to FAA for approval as a means of compliance for 
satisfying the applicable noise requirements of this part and part 36 
of this chapter.
    (2) If the Administrator determines the voluntary consensus 
standards body's means of compliance satisfies the requirements of part 
36 of this chapter, the Administrator will notify the voluntary 
consensus standards body that the means of compliance for noise is 
approved.
    (3) The Administrator will publish a document in the Federal 
Register announcing approval of the noise means of compliance to the 
public.


Sec.  108.710  Compliance with design, test, production, noise, and 
airworthiness requirements.

    (a) To seek airworthiness acceptance for an unmanned aircraft 
system, a manufacturer must comply with this subpart and subpart H of 
this part and must submit a declaration of compliance to the 
Administrator that meets the requirements of Sec.  108.715.
    (b) To receive airworthiness acceptance, an unmanned aircraft 
system must meet the following requirements:
    (1) Except as otherwise provided in this section, the requirements 
of this subpart and subpart H of this part must be met through the use 
of an FAA-accepted means of compliance.
    (2) The noise requirements of part 36 of this chapter and this part 
may be met by either the use of an FAA-approved means of compliance or 
other applicable methods specified in part 36.
    (3) The cybersecurity requirements of Sec.  108.875 may be met 
either by the use of an FAA-accepted means of compliance or by any 
other standard acceptable to the Administrator for purposes of meeting 
the requirements of that section.
    (c) The individual who determines compliance with the applicable 
consensus standards must be trained to determine whether a 
manufacturer's unmanned aircraft system demonstrates compliance with 
the provisions of any applicable FAA-accepted or approved consensus 
standards.


Sec.  108.715  Declaration of compliance.

    (a) To apply for airworthiness acceptance, a manufacturer must 
submit a declaration of compliance for FAA acceptance in a form or 
manner acceptable to the Administrator.
    (b) A declaration of compliance must include the following:
    (1) The manufacturer's name, physical address, telephone number, 
and email address.
    (2) The unmanned aircraft make, model, series, serial number, and 
date of manufacture.
    (3) The operations the manufacturer has specified may be safely 
conducted using the unmanned aircraft system.
    (4) The means of compliance used to determine the unmanned aircraft 
system's compliance with design, test, production, and airworthiness 
requirements of this subpart and subpart H of this part.
    (5) The means of compliance for noise or other method of compliance 
specified in part 36 of this chapter used for compliance used to 
determine the unmanned aircraft system's compliance with noise 
requirements.
    (6) The standard used, if another standard acceptable to the 
Administrator is used to meet the cybersecurity requirements of Sec.  
108.875.
    (7) A declaration that the unmanned aircraft system meets the 
requirements of Sec.  108.710.
    (8) A declaration that the determination required by paragraph 
(b)(7) of this section was made by an individual who meets the 
requirements of Sec.  108.710(c).
    (9) A declaration that the unmanned aircraft system conforms to the 
manufacturer's design data and that the manufacturer used a quality 
assurance system that meets the requirements of Sec.  108.730.
    (10) A declaration that the manufacturer will make available to any 
registered owner, the National Transportations Safety Board, or the 
Administrator the documents specified in Sec.  108.720 upon request.
    (11) A declaration that the manufacturer will support the unmanned 
aircraft systems after airworthiness acceptance by implementing and 
maintaining a documented continued operational safety program as 
required in Sec.  108.740.
    (12) A declaration that the manufacturer will monitor and correct 
safety-of-flight issues through the issuance of safety bulletins 
following airworthiness acceptance.
    (13) A declaration that the manufacturer has inspected the unmanned 
aircraft system in accordance with Sec.  108.735.
    (14) A declaration that at the request of the Administrator, the 
manufacturer will provide unrestricted access to its facilities and to 
all data and documentation and allow the Administrator to witness any 
tests necessary to determine compliance with this section or other 
applicable requirements of this chapter, or other information as 
requested by the Administrator.
    (15) A declaration that the manufacturer has established and will 
maintain a quality assurance system that meets the requirements of 
Sec.  108.730.
    (16) A declaration that the unmanned aircraft system complies with 
subpart F of part 89 of this chapter.
    (c) The declaration of compliance must be signed by the 
manufacturer's authorized representative or agent who is trained and 
certified on the requirements associated with the declaration of 
compliance by an organization that certifies and trains quality 
assurance staff in accordance with an FAA-accepted means of compliance.
    (d) If the manufacturer has successfully met the applicable 
requirements of this subpart and subpart H of this part, the 
Administrator will accept the declaration of compliance and notify the 
manufacturer of the acceptance.


Sec.  108.720  Documents.

    (a) The manufacturer of an unmanned aircraft system with, or 
seeking, an airworthiness acceptance must prepare and retain the 
following documents.
    (1) Operating instructions that include but are not limited to:
    (i) Procedures and limitations to accommodate environmental 
conditions likely to be encountered in the unmanned aircraft system's 
intended operations, including normal, abnormal, and emergency 
procedures.
    (ii) A listing of the manufacturer-designated operations, as 
defined in Sec. Sec.  108.400 and 108.500, that may be safely conducted 
using the unmanned aircraft system.
    (iii) The manufacturer-designated ratio of unmanned aircraft to 
flight coordinator.
    (iv) A statement that the aircraft has demonstrated compliance with 
part 36 of this chapter, the demonstrated noise levels of the aircraft, 
and the following statement: ``No determination has been made by the 
Federal Aviation Administration whether the noise levels of this 
aircraft are or should be acceptable for operation in any location.''

[[Page 38382]]

    (v) A list of parts and installed equipment necessary for the safe 
operation of the aircraft, or a list of equipment that is allowed to be 
inoperative.
    (2) Maintenance instructions that include procedures necessary to 
ensure continued safe operation, including but not limited to 
inspection criteria, repairs, and life limits, of the unmanned aircraft 
and its associated elements.
    (3) A configuration control document that defines all acceptable 
configurations of both the unmanned aircraft and associated elements.
    (b) The manufacturer of an unmanned aircraft system with an 
airworthiness acceptance must make these documents readily available to 
any registered owner, the National Transportation Safety Board, or the 
Administrator upon request.


Sec.  108.725  Flight data.

    Each manufacturer of an unmanned aircraft system with an 
airworthiness acceptance must:
    (a) Establish and maintain a flight data collection system for all 
unmanned aircraft system models produced subject to the requirements of 
this part. This system must include the capture and storage of flight 
data provided by the aircraft operator per Sec.  108.45(a)(2).
    (b) Retain flight data records for a minimum of 2 years after the 
collection of the data.
    (c) Implement adequate security measures to protect the 
confidentiality and integrity of collected flight data.
    (d) Upon request from the Administrator, provide access to the 
collected flight data in a manner acceptable to the Administrator.


Sec.  108.730  Quality assurance system.

    The unmanned aircraft system must be designed, produced, and tested 
under a manufacturer-established and documented quality assurance 
system that demonstrates each unmanned aircraft system produced 
conforms to its design and is in a condition for safe operation.


Sec.  108.735  Production.

    Each manufacturer must inspect and test each unmanned aircraft 
system under manufacturer-established and documented production 
procedures to demonstrate that--
    (a) The unmanned aircraft system has no hazardous operating 
characteristics or design features;
    (b) The unmanned aircraft system is in a condition for safe 
operation; and
    (c) The unmanned aircraft can safely conduct any permitted or 
certificated operations in Sec. Sec.  108.400 and 108.500 for which the 
unmanned aircraft is intended, as designated by the manufacturer.


Sec.  108.740  Continued operational safety program.

    (a) Each manufacturer of an unmanned aircraft system that has 
received airworthiness acceptance must implement and maintain a 
documented continued operational safety program.
    (b) The continued operational safety program must include--
    (1) Requirements monitoring for, identifying, and resolving in-
service safety issues or noncompliance with this subpart and subpart H 
of this part, including implementing any airworthiness directives 
pertaining to type-certificated products or appliances, if installed;
    (2) Provisions for the issuance of safety bulletins;
    (3) A process for notifying the Administrator and all owners of the 
unmanned aircraft system of all safety issues, including their planned 
resolution; and
    (4) A process for providing advance notice to the Administrator and 
all owners of unmanned aircraft system of a continued operational 
safety program discontinuance or provider change.
    (c) A manufacturer of an unmanned aircraft system that has received 
airworthiness acceptance must report any identified hazard involving 
its unmanned aircraft system models to the Administrator within 10 
calendar days, accompanied by the relevant flight data.


Sec.  108.745  Inspections and audits.

    Each manufacturer, with a valid flight test permit or who submits a 
declaration of compliance, of an unmanned aircraft system for 
airworthiness acceptance must:
    (a) Upon request, allow the Administrator to inspect its 
facilities, technical data, reports, any manufactured unmanned aircraft 
system in its possession, and any other necessary information to 
determine compliance with this part.
    (b) Upon request, allow the Administrator to witness any tests to 
determine compliance with this part.
    (c) Submit to independent inspections or audits conducted by the 
voluntary consensus standards body, or its delegate, that submitted a 
means of compliance the manufacturer used to meet the requirements of 
this subpart and subpart H of this part.
    (d) Upon request, make available to the Administrator results from 
independent inspections and audits completed under paragraph (c) of 
this section.


Sec.  108.750  Design changes.

    (a) Only the manufacturer of the unmanned aircraft system that has 
received airworthiness acceptance may make design changes to the 
unmanned aircraft.
    (b) The manufacturer must demonstrate compliance with the 
requirements of this subpart and subpart H of this part for any design 
change to an unmanned aircraft system that has received airworthiness 
acceptance.
    (c) Each manufacturer of the unmanned aircraft system that has 
received airworthiness acceptance must update all documentation 
affected by the design change, including the operating instructions, 
maintenance instructions, and configuration control document required 
by Sec.  108.720.


Sec.  108.755  Repairs and alterations.

    Each manufacturer of an unmanned aircraft system with an 
airworthiness acceptance must do the following:
    (a) Authorize any repair or alteration under Sec.  108.625.
    (b) Ensure the repaired or altered unmanned aircraft system 
continues to comply with the requirements of this subpart and subpart H 
of this part.
    (c) Conduct testing required by Sec. Sec.  108.930 and 108.935 for 
any repair or alteration that affects the flight characteristics or 
demonstrated reliability.


Sec.  108.760  Record retention.

    (a) Retention requirement. Each manufacturer of an unmanned 
aircraft system that has received airworthiness acceptance must retain 
and make available to the Administrator, upon request, all supporting 
information used to demonstrate compliance with the requirements of 
this subpart and subpart H of this part.
    (b) Duration. Each manufacturer who submits a declaration of 
compliance for an unmanned aircraft system must retain the information 
described in paragraph (a) of this section for as long as it supports 
the continued operational safety of the unmanned aircraft system listed 
on the declaration of compliance and for 2 years following any 
cessation of support for the continued operational safety program.


Sec.  108.765  Rescission.

    (a) Rescission of Means of Compliance. The Administrator may 
rescind its acceptance of a means of compliance if the Administrator 
determines that a means of compliance does not meet any of the 
requirements of this subpart and subpart H of this part.
    (b) Rescission of Airworthiness Acceptance. The Administrator may

[[Page 38383]]

rescind airworthiness acceptance for an unmanned aircraft system if the 
Administrator determines the unmanned aircraft system presents safety 
concerns related to design or performance, or if the manufacturer of 
the unmanned aircraft system that has received airworthiness acceptance 
has not complied with the requirements of this subpart and subpart H of 
this part.
    (c) Notification of Rescission of Airworthiness Acceptance. The 
Administrator will notify the manufacturer of the unmanned aircraft 
system that has received airworthiness acceptance of proposed 
rescission in the following manner:
    (1) The Administrator will issue notice setting forth the Agency's 
basis for proposed rescission.
    (2) The manufacturer of the unmanned aircraft system that has 
received airworthiness acceptance will have 30 calendar days to submit 
evidentiary information to refute proposed rescission.
    (3) The Administrator will consider the manufacturer's response to 
proposed rescission, and may request any necessary additional 
information, stay rescission, or issue a notice rescinding the 
declaration of compliance.
    (4) If the Administrator does not receive the response from the 
manufacturer of the unmanned aircraft system that has received 
airworthiness acceptance within 30 calendar days from the date of the 
issuance of proposed notice, the Administrator may issue a notice 
rescinding the declaration of compliance.
    (d) Emergency rescission of airworthiness acceptance. (1) If the 
Administrator determines an emergency exists and public safety requires 
an immediate rescission of airworthiness acceptance, the Administrator 
may issue an order rescinding a declaration of compliance without 
initiating the process in paragraph (c) of this section.
    (2) The rescission would remain in effect until the basis for 
issuing the rescission no longer exists.

Subpart H--Design and Testing Requirements for Airworthiness 
Acceptance


Sec.  108.800  General.

    (a) Purpose. This subpart prescribes design and performance 
standards for airworthiness acceptance of unmanned aircraft systems 
under this part.
    (b) Eligibility. To be eligible for airworthiness acceptance, an 
unmanned aircraft system must--
    (1) Meet the requirements of subpart G and this subpart,
    (2) Not be an airship; and
    (3) Not be designed to allow for any person on board during 
operations.


Sec.  108.805  Size, weight, and speed.

    The unmanned aircraft must, unless otherwise authorized by the 
Administrator--
    (a) Have a wingspan or lateral span not to exceed 25 feet (7 
meters);
    (b) Not have a combined total weight greater than 1,320 pounds (600 
kilograms), including anything attached to or carried by the aircraft; 
and
    (c) Be limited not to exceed 87 knots ground speed.


Sec.  108.810  Simplified user interaction.

    The unmanned aircraft system must possess simplified user 
interaction design features during all phases of flight that meet the 
following:
    (a) The unmanned aircraft must be consistently and predictably 
controllable, stable, and maneuverable with automated flight controls, 
without manual flight control being necessary or available, at all 
flight and ground loading configurations within the unmanned aircraft's 
prescribed weight limits.
    (b) The unmanned aircraft must be resistant to operation outside of 
the flight design envelope.
    (c) The unmanned aircraft must not lose control due to the 
degradation or nonavailability of external services, systems, operator 
input, or signals.
    (d) The unmanned aircraft system must have the ability to 
discontinue the flight as soon as practicable and in a manner that does 
not create a safety hazard.


Sec.  108.815  Signal monitoring and transmission.

    (a) The unmanned aircraft must be designed to receive from and 
transmit to the associated elements all information required for safe 
flight and operation.
    (b) The unmanned aircraft must be designed to execute a safe 
predetermined action when reaching the link timeout.


Sec.  108.820  Position, navigation, and timing.

    The unmanned aircraft system must be capable of sustaining 
position, navigation, and timing with accuracy to maintain safe 
distance in the airspace in which the unmanned aircraft operates.


Sec.  108.825  Collision avoidance.

    The unmanned aircraft system must be designed with the capability 
to avoid aircraft as required in accordance with Sec.  108.195.


Sec.  108.830  Anti-collision lighting.

    (a) Anti-collision lights must--
    (1) Be installed on the aircraft.
    (2) Have intensities that, when operating at night, are visible for 
at least 3 statute miles; and
    (3) Have flash rate, colors, and fields of coverage to enhance 
visibility.
    (b) Consistent with operating requirements in Sec.  108.110, the 
design may allow for the deactivation or reduction of intensity of the 
anti-collision lights.


Sec.  108.835  Position lighting.

    If the unmanned aircraft has a wingspan or lateral span equal to or 
greater than 96 inches, the unmanned aircraft must--
    (a) Be equipped with position lights that include a red light on 
the left side of the aircraft, a green light on the right side of the 
aircraft, spaced laterally as far apart as practicable, and a white 
light facing aft, located on an aft portion of the aircraft or on the 
wing tips; or
    (b) Have operating instructions that include a limitation 
prohibiting night operations.


Sec.  108.840  Power generation, storage, and distribution system.

    (a) The unmanned aircraft system must be designed to provide power 
for all connected electrical loads.
    (b) No single failure or malfunction of the unmanned aircraft power 
generation, storage, and distribution system shall result in a loss of 
flight or loss of control.


Sec.  108.845  Propulsion system.

    (a) The propulsion system must possess the necessary reliability, 
durability, and endurance for safe flight without failure, malfunction, 
or excessive wear, throughout the expected life cycle of the propulsion 
system.
    (b) The propulsion system must be designed not to exceed safe 
operating limits under normal operating conditions.
    (c) The propulsion system must be designed so that a loss of power 
or a power failure does not lead to loss of control of the unmanned 
aircraft.


Sec.  108.850  Fuel system.

    If equipped, the unmanned aircraft fuel system must:
    (a) Provide a means to remove or isolate the fuel stored in the 
system from the rest of the aircraft safely.
    (b) Be designed to retain fuel under all likely operating 
conditions.
    (c) Have ventilation and drainage where flammable fluid or vapor 
may exist.


Sec.  108.855  Fire protection.

    The unmanned aircraft must be designed to sustain static and 
dynamic deceleration loads without causing

[[Page 38384]]

structural damage to the fuel or electrical system components or their 
attachments.


Sec.  108.860  Software.

    (a) All software that may affect the safe operation of the unmanned 
aircraft system must function properly and have dependability.
    (b) All software changes made throughout the life cycle of the 
unmanned aircraft system must be tracked, controlled, and documented 
through a configuration management system.
    (c) All software defects and modifications must be captured and 
recorded through a problem reporting system.


Sec.  108.865  Electronic hardware.

    (a) Unmanned aircraft system electronic hardware must perform its 
intended function throughout the intended operating and environmental 
limitations.
    (b) Unmanned aircraft system electronic hardware must be designed 
and installed so their operation does not have an adverse effect on the 
safe operation of the unmanned aircraft.


Sec.  108.870  Systems and equipment.

    (a) The unmanned aircraft system must have all systems and 
equipment necessary for safe flight, taking into account any systems or 
equipment necessary to operate the unmanned aircraft in the intended 
airspace class or that are required for the operation.
    (b) Installed systems and equipment must perform their intended 
function within the intended operating and environmental limitations.
    (c) No probable failure shall result in a hazard.


Sec.  108.875  Cybersecurity.

    The unmanned aircraft system equipment, systems, and networks, 
addressed separately and in relation to other systems, must be 
protected from unauthorized electronic interactions.


Sec.  108.880  Associated elements design and performance requirements.

    (a) Each associated element, addressed separately and in relation 
to the unmanned aircraft and any other associated elements, must be 
designed to perform its intended function under all operating 
conditions specified in the unmanned aircraft system operating 
instructions.
    (b) Any probable failure or malfunction of an associated element or 
component thereof must not result in a hazard.
    (c) The associated element must be designed to continuously 
monitor, display, and transmit information required for safe flight and 
operation.


Sec.  108.885  Suitability and durability of materials.

    The suitability and durability of materials used in the unmanned 
aircraft system must account for the effects of all operational and 
environmental conditions expected in service.


Sec.  108.890  Operating environment conditions.

    (a) The unmanned aircraft must have design characteristics to 
accommodate environmental conditions likely to be encountered during 
its intended operations; or
    (b) The unmanned aircraft system must have the capability to 
identify and avoid or exit those environmental conditions in which the 
unmanned aircraft is not designed to operate.


Sec.  108.895  Lightning protection.

    (a) The unmanned aircraft system must be capable of maintaining 
continued flight and control in the event of a lightning strike; or
    (b) The operating instructions must include an operating limitation 
explicitly prohibiting flight operations in weather conditions that are 
conducive to lightning activity.


Sec.  108.900  Flight data recorder.

    (a) The unmanned aircraft system must be equipped with a flight 
data recorder system that captures and records onboard systems and 
flight data from initial power up through shutdown.
    (b) The recorded data must be in a standardized format and readily 
accessible to the Administrator or National Transportation Safety 
Board, and readable without requiring proprietary software.


Sec.  108.905  Flight data analysis.

    The unmanned aircraft system must be designed to provide the 
manufacturer of the unmanned aircraft system that has received 
airworthiness acceptance with captured and recorded data from flight 
operations in order to conduct trend analysis, failure identification, 
and root cause analysis.


Sec.  108.910  Noise.

    The unmanned aircraft must meet the applicable noise requirements 
of part 36 of this chapter.


Sec.  108.915  Placards.

    The unmanned aircraft system must display all placards necessary 
for safe handling and operation.


Sec.  108.920  Identification and marking.

    The unmanned aircraft identification and registration marking must 
comply with the requirements of part 45 of this chapter.


Sec.  108.925  Additional design and performance requirements for 
specific operational purposes.

    (a) The unmanned aircraft system must be designed to account for 
any operational and environmental conditions and hazards, for any 
manufacturer-designated permitted or certificated operations as defined 
in Sec. Sec.  108.400 and 108.500.
    (b) For unmanned aircraft designed for the carriage of hazardous 
materials, the unmanned aircraft or transport container must have 
sufficient structural integrity to contain the hazardous material 
without allowing leakage or release of the material in the event of a 
hard landing or crash.


Sec.  108.930  Developmental testing.

    (a) Each manufacturer must conduct flight tests of the unmanned 
aircraft system to achieve or validate the design and performance 
requirements of this subpart in an operationally representative 
environment and throughout the flight envelope.
    (b) Analysis may be used in combination with flight testing to 
validate compliance with this subpart. Any simulations used for testing 
must be validated using an FAA accepted means of compliance.
    (c) Before proceeding with function and reliability testing under 
Sec.  108.935, the manufacturer must ensure the unmanned aircraft 
system's configuration has no hazardous operating characteristics or 
design features and is safe for the intended operation.
    (d) Testing must validate that a probable failure of the unmanned 
aircraft system will not result in a loss of flight or control of the 
unmanned aircraft.


Sec.  108.935  Function and reliability testing.

    (a) Each manufacturer must perform function and reliability testing 
for each unmanned aircraft system make, model and configuration.
    (b) The make, model, and configuration of each unmanned aircraft 
system must perform at least 150 flight hours without experiencing any 
failure leading to--
    (1) Loss of flight,
    (2) Loss of control,
    (3) Non-conformance with unmanned aircraft system traffic 
management,
    (4) Loss of safe distance; or
    (5) Results in an unplanned landing.

[[Page 38385]]

    (c) Testing must be conducted in an operationally representative 
environment, of Sec. Sec.  108.400 and 108.500, as designated by the 
manufacturer.

PART 119--CERTIFICATION: AIR CARRIERS AND COMMERCIAL OPERATORS

0
34. The authority citation for part 119 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40101, 40102, 40103, 
40113, 44105, 44106, 44111, 44701-44717, 44722, 44901, 44903, 44904, 
44906, 44912, 44914, 44936, 44938, 46103, 46105; sec. 215, Pub. L. 
111-216, 124 Stat. 2348.

0
35. Amend Sec.  119.1 by adding paragraph (e)(12) to read as follows:


Sec.  119.1  Applicability.

* * * * *
    (e) * * *
    (12) Unmanned aircraft system operations conducted under part 108 
of this chapter.

PART 133--ROTORCRAFT EXTERNAL-LOAD OPERATIONS

0
36. The authority citation for part 133 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701-44702.


Sec.  133.1  [Amended]

0
37. Amend Sec.  133.1 by adding the words ``or 108'' after the words 
``part 107'' in the introductory text.

PART 135--OPERATING REQUIREMENTS: COMMUTER AND ON DEMAND OPERATIONS 
AND RULES GOVERNING PERSONS ON BOARD SUCH AIRCRAFT

0
38. The authority citation for part 135 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 40113, 41706, 44701-44702, 44705, 
44709, 44711-44713, 44715-44717, 44722, 44730, 45101-45105; Pub. L. 
112-95, 126 Stat. 58 (49 U.S.C. 44730)


Sec.  135.1  [Amended]

0
39. Remove the period at end of paragraphs (a)(1) and (a)(7) and in its 
place add the phrase ``, except when those operations are conducted 
under the provisions of part 108 of this chapter.''

PART 137--AGRICULTURAL AIRCRAFT OPERATIONS

0
40. The authority citation for part 137 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40103, 40113, 44701-44702.


Sec.  137.1  [Amended]

0
41. Amend Sec.  137.1 by adding the phrase ``Except for aircraft 
subject to part 108 of this chapter,'' at the beginning of the 
introductory text of paragraph (a).
0
42. Add part 146 to subchapter H of chapter I to read as follows:

PART 146--AUTOMATED DATA SERVICE PROVIDERS

Subpart A--General
Sec.
146.1 Applicability.
146.5 Definitions.
146.10 General requirements.
146.15 Falsification, reproduction, alteration, or omission.
Subpart B--Certificate
Sec.
146.100 Application.
146.105 Applicant information.
146.110 Service levels.
146.115 Certification requirements.
146.120 Evaluation of application.
146.125 Obligation to update.
146.130 Terms.
Subpart C--Service Authorizations
Sec.
146.200 Request for authorization.
146.205 Authorization requirements.
146.210 Evaluation of request.
Subpart D--Certificated Service Providers
Sec.
146.300 Minimum requirements.
146.305 Cyber and data security.
146.310 Quality management system.
146.315 Change management.
146.320 Training program.
146.325 Reportable occurrences.
146.330 Record retention.
Subpart E--Authorized Service Requirements
Sec.
146.400 Authorized service data exchange requirements.
146.405 Software updates.
146.500 Revocations and suspension.
146.505 Petition to reconsider.
Subpart F--Due Process
Sec.
146.500 Revocations, Emergency Suspensions, and Requests for 
Reconsideration.
146.505 Petition to reconsider.

    Authority:  49 U.S.C. 106(f), 106(g), 40101, 40103(b), 
44701(a)(5), 44702, 44707, 46105(c), 46110, 44802. Pub. L. 115-254 
sec. 342, sec. 360, sec. 376. Pub. L. 118-63 sec. 932.

Subpart A--General


Sec.  146.1  Applicability.

    (a) General. This part applies to anyone who seeks a certificate to 
provide automated data services that support aircraft operations using 
a distributed computational system for the purpose of showing 
compliance with requirements in this chapter.
    (b) Exceptions. This part does not apply to--
    (1) Services used to comply with requirements in part 21 of this 
chapter;
    (2) Services used to comply with requirements in subchapter J of 
this chapter;
    (3) Services that are provided through the Low Altitude 
Authorization and Notification Capability (LAANC); and
    (4) Services provided to aircraft with an onboard pilot in command.


Sec.  146.5  Definitions.

    The following definitions apply to this part. If there is a 
conflict between the definitions of this part and the definitions 
specified in Sec.  1.1 of this chapter, the definitions in this part 
control for purposes of this part:
    Authorized services means those services a certificated automated 
data service provider is authorized to provide under this part.
    Automated data service provider means a person using a distributed 
computational system to provide automated data services that support 
aircraft operations.
    Distributed computational system means a system that relies on one 
or multiple piece(s) of software, running simultaneously on one or 
multiple computer(s), to provide a set of functions.
    Major update means a change to the software version that includes 
substantial changes to the application programming interface (API), or 
the features and functionality, such that the new version is not 
backward compatible with previous versions.
    Minor update means a change to the software version that changes 
the application programming interface (API), may include new features 
or functionality, and remains backward compatible.
    Patch update means a change to the software version that does not 
change the application programming interface (API) and is used for 
backward-compatible bug fixes and performance improvements.
    Third-party vendor means a person that provides a distributed 
software capability that is necessary for a certificated service 
provider to meet the requirements of this part but for which the 
certificated service provider does not have direct control over the 
personnel, software code, or organizational processes.


Sec.  146.10  General requirements.

    A person may obtain a certificate to provide automated data 
services using a

[[Page 38386]]

distributed computational system for the purpose of showing compliance 
with the requirements under this chapter. Only those automated data 
services authorized in accordance with subpart C of this part may be 
used to show compliance with requirements under this chapter.


Sec.  146.15  Falsification, reproduction, alteration, or omission.

    (a) Prohibited acts. No person may make or cause to be made any 
fraudulent or intentionally false entry in--
    (1) Any application under this part (including in any document used 
in support of that application);
    (2) Any record or report that is made, kept, or used to show 
compliance with any requirement under this part;
    (3) Any reproduction, for fraudulent purpose, of any application 
(including any document used in support of that application), record, 
or report under this part; or
    (4) Any alteration, for fraudulent purpose, of any application 
(including any document used in support of that application), record, 
or report under this part.
    (b) Prohibited omissions. No person may, by omission, knowingly 
conceal or cause to be concealed, a material fact in--
    (1) Any application made under this part (including in any document 
used in support of that application); or
    (2) Any record or report that is made, kept, or used to show 
compliance with any requirement under this part.
    (c) Penalties. The commission by any person of an act prohibited 
under paragraphs (a) or (b) of this section is a basis for any one or 
any combination of the following:
    (1) Suspending or revoking any certificate, approval, or 
authorization issued by FAA and held by that person.
    (2) A civil penalty.
    (3) The denial of a certificate, approval, or authorization.

Subpart B--Certificate


Sec.  146.100  Application.

    Any person seeking to obtain a certificate to provide automated 
data services using a distributed computational system to comply with 
requirements under this chapter must submit the information identified 
in this subpart in a form and manner acceptable to the Administrator.


Sec.  146.105  Applicant information.

    (a) Contact information. The applicant must provide the name, 
address of principal place of business, telephone number, and email 
address for the person seeking a certificate.
    (b) Ownership structure.
    (1) Corporate applicants must submit documentation identifying the 
name and address of each stockholder who owns 5 percent or more of the 
total voting stock of the corporation, and if that stockholder is not 
the sole beneficial owner of the stock, the name and address of each 
beneficial owner. An individual is considered to own the stock owned, 
directly or indirectly, by or for a spouse, children, grandchildren, or 
parents.
    (2) Non-corporate applicants must submit documentation identifying 
the name and address of each person having a financial interest in the 
entity.
    (c) Accountable executive. The applicant must provide a name, 
address, telephone number, and email address for the accountable 
executive, as defined in part 5 of this chapter.
    (d) Authorization to do business. The applicant must provide 
documentation demonstrating its authority to conduct business in the 
United States.
    (e) Other. The applicant must provide any other relevant 
documentation the Administrator deems necessary to verify the entity's 
identity, corporate ownership, and authority to conduct business in the 
United States.


Sec.  146.110  Service levels.

    (a) General. An applicant may be certificated at a service level 
described in this section.
    (b) Service levels.
    (1) Level 1: Services that support operations conducted under part 
108 of this chapter and does not rely on regulatory relief to operate 
under that part.
    (2) Level 2: Services that support operations conducted under part 
108 of this chapter but rely on regulatory relief to operate under that 
part.
    (3) Level 3: Services that are neither Service Level 1 nor Service 
Level 2, supporting operations that are not conducted under part 108 of 
this chapter.


Sec.  146.115  Certification requirements.

    (a) Service Level 1. An applicant seeking a Service Level 1 
certificate must provide, in a form and manner acceptable to the 
Administrator--
    (1) a declaration of compliance that the applicant meets all 
applicable requirements in subpart D of this part; and
    (2) A declaration of compliance that the applicant meets the 
requirements to provide at least one authorized level 1 service in 
accordance with subpart E of this part.
    (b) Service Level 2. An applicant seeking a Service Level 2 
certificate must provide, in a form and manner acceptable to the 
Administrator--
    (1) A declaration of compliance and documentation describing how 
the applicant meets all applicant requirements in subpart D of this 
part; and
    (2) A declaration of compliance and documentation describing how 
the applicant meets the requirements to provide at least one authorized 
level 2 service in accordance with subpart E of this part.
    (c) Service Level 3. An applicant seeking a Service Level 3 
certificate must provide, in a form and manner acceptable to the 
Administrator--
    (1) A declaration of compliance, documentation, and supporting data 
demonstrating that the applicant meets all applicable requirements in 
subpart D of this part;
    (2) A declaration of compliance, documentation, and supporting data 
demonstrating that the applicant meets the requirements to provide at 
least one authorized level 3 service in accordance with subpart E of 
this part; and
    (3) Documentation and supporting data demonstrating that the 
applicant's service meets the reliability, availability, latency, or 
other quality of service metrics necessary to provide the service.
    (d) Initial applicants. An applicant seeking an initial certificate 
must also submit an application for authorization to provide at least 
one service, in accordance with subpart C of this part. The 
Administrator will issue a certificate to provide services only to 
applicants that can obtain approval to provide at least one authorized 
service.
    (e) Foreign-qualified applicants. An applicant submitting proof of 
an active authorization to provide data services from a country that 
the United States has a bilateral aviation safety agreement covering 
automated data services comparable to those in this part, may be deemed 
to meet the application requirements in this section.


Sec.  146.120  Evaluation of application.

    (a) Evaluation. The Administrator will evaluate the information the 
applicant submits and any other relevant information to determine 
whether the applicant meets the minimum qualifications of this part. 
The Administrator may request that the applicant provide supplemental 
information at any time during the application process.
    (b) Issuance. Except as provided in paragraph (c) of this section, 
the Administrator may issue a person who meets the requirements of this 
part a

[[Page 38387]]

certificate to use a distributed computational system to provide 
automated data services that the applicant demonstrated it was 
qualified to provide, as described in Sec.  146.115. The Administrator 
may place limits or conditions on the certificate as are necessary in 
the interest of safety.
    (c) Denial. FAA may deny an application for a certificate under 
this part if FAA finds that--
    (1) The applicant does not meet the requirements of this part;
    (2) The applicant holds a certificate under this part that is under 
suspension or is in the process of being revoked or suspended;
    (3) The applicant previously held a certificate under this part 
that was revoked;
    (4) The applicant fills or intends to fill a management position 
with an individual who exercised control over or who held the same or a 
similar position with a certificated service provider under this part 
whose certificate was revoked or suspended, or is in the process of 
being revoked or suspended, and that individual materially contributed 
to the circumstances resulting in the revocation or suspension;
    (5) An individual who will have control over or substantial 
ownership interest in the applicant had the same or similar control or 
interest in a certificated service provider whose certificate was 
revoked or suspended, or is in the process of being revoked or 
suspended, and that individual materially contributed to the 
circumstances resulting in the revocation or suspension; or
    (6) For failure to comply with other applicable legal requirements.


Sec.  146.125  Obligation to update.

    A person seeking an initial or amended certificate under this part 
has an ongoing obligation to update information submitted during the 
application process until the Administrator either grants or denies the 
application. The applicant must report this updated information to the 
Administrator within 10 days of becoming aware of the change in a form 
and manner acceptable to the Administrator.


Sec.  146.130  Terms.

    (a) Duration. A certificate issued under this section remains valid 
until surrendered by the holder, or until revoked or suspended by FAA.
    (b) Application to provide additional services. A certificated 
service provider seeking to provide services for additional service 
levels must apply in accordance with the provisions of this subpart, 
except that the applicant need only submit information relevant to the 
new or amended service level.
    (c) Non-transferable. No certificate issued under this section may 
be transferred to another organization without the Administrator's 
express approval. For the purposes of this section, a change in 
ownership structure in Sec.  146.105(b) constitutes a transfer that 
requires the Administrator's express approval.

Subpart C--Service Authorizations


Sec.  146.200  Request for authorization.

    (a) General. Any person seeking authorization to provide an 
automated data service using a distributed computational system under 
this part, must submit the information identified in this subpart in a 
form and manner acceptable to the Administrator.
    (b) Certificate required. No person may obtain authorization to 
provide services under this part without being in compliance with a 
certificate issued under subpart B of this part.


Sec.  146.205  Authorization requirements.

    (a) Requirements. An applicant seeking to provide an authorized 
service under this part must--
    (1) Establish the minimum performance requirements for the service, 
in accordance with paragraph (b) of this section;
    (2) Demonstrate that the applicant is capable of meeting the 
minimum performance requirements, in accordance with paragraph (c) of 
this section;
    (3) Demonstrate that the service meets the requirements of subpart 
E of this part, in accordance with paragraph (d) of this section;
    (4) Demonstrate that the service supports an aircraft operator's 
ability to comply with requirements in this chapter; and
    (5) Demonstrate that the service is designed in accordance with an 
industry consensus standard or consensus standards.
    (b) Establishing minimum performance requirements. An applicant 
establishes the minimum performance requirements for the service by 
submitting data and documentation in a form and manner acceptable to 
the Administrator that includes--:
    (1) An overview describing the service and its intended use;
    (2) All representations to service users regarding the 
capabilities, quality-of-service, limitations, and responsibilities of 
the service provider and service user related to the authorized 
service; and
    (3) Technical specifications describing the service's system 
architecture and functionality.
    (c) Demonstrating applicant's capability. In a form and manner 
acceptable to the Administrator, the applicant must demonstrate that 
they are capable of meeting the minimum performance requirements as 
follows:
    (1) An applicant seeking authorization to provide a level 1 service 
must provide, in a form and manner acceptable to the Administrator, a 
declaration of compliance that the applicant meets all applicable 
requirements of paragraph (b) of this section.
    (2) An applicant seeking authorization to provide a level 2 service 
must provide, in a form and manner acceptable to the Administrator, a 
declaration of compliance and documentation describing how the 
applicant meets all applicable requirements of paragraph (b) of this 
section.
    (3) An applicant seeking authorization to provide a level 3 service 
must provide, in a form and manner acceptable to the Administrator, a 
declaration of compliance, documentation, and supporting data 
demonstrating that the applicant meets all applicable requirements of 
paragraph (b) of this section.
    (d) Demonstrate that the service meets the requirements of subpart 
E of this part. In a form and manner acceptable to the Administrator, 
the applicant must demonstrate that their automated data service meets 
the software updates and data exchange requirements of subpart E of 
this part as follows:
    (1) An applicant seeking authorization to provide a level 1 service 
must provide, in a form and manner acceptable to the Administrator, a 
declaration of compliance that the service meets the requirements in 
subpart E of this part.
    (2) An applicant seeking authorization to provide a level 2 service 
must provide, in a form and manner acceptable to the Administrator, a 
declaration of compliance and documentation describing how the service 
meets the requirements in subpart E of this part.
    (3) An applicant seeking authorization to provide a level 3 service 
must provide, in a form and manner acceptable to the Administrator, a 
declaration of compliance, documentation, and supporting data 
demonstrating that the service meets the requirements in subpart E of 
this part.

[[Page 38388]]

Sec.  146.210  Evaluation of request.

    (a) Evaluation. The Administrator will evaluate the information the 
applicant submits and any other relevant information to determine 
whether the applicant meets the requirements of Sec.  146.205. The 
Administrator may request that the applicant provide supplemental 
information at any time during the evaluation process.
    (b) Authorization. Except as provided in paragraph (c) of this 
section, the Administrator may authorize the applicant to provide a 
requested service if the applicant meets the requirements of Sec.  
146.205. The Administrator may place limits or conditions on the 
authorization as are necessary in the interest of safety.
    (c) Denial. FAA may deny a request for authorization for a service 
under this part if FAA finds that--
    (1) The applicant does not hold a valid certificate under this 
part; or
    (2) Does not meet all requirements of Sec.  146.205.
    (d) Non-transferable. No authorization to provide services issued 
under this section may be transferred to another organization without 
the Administrator's express approval.

Subpart D--Certificated Service Providers


Sec.  146.300  Minimum requirements.

    (a) Certificate. Unless otherwise authorized by the Administrator, 
a certificated service provider providing services under this part must 
comply with the terms of the certificate issued under subpart B of this 
part.
    (b) Authorized services. Unless otherwise authorized by the 
Administrator, a certificated service provider providing services under 
this part must comply with the terms of the authorization issued under 
subpart C of this part.
    (c) Facilities, equipment, software, and data. A certificated 
service provider must maintain the facilities, equipment, software, and 
data necessary to meet the minimum requirements required to comply with 
the terms of the certificate and service authorizations in this part, 
except as provided in paragraph (d) of this section. Those requirements 
include the following:
    (1) Cyber and data security requirements in accordance with Sec.  
146.305.
    (2) Quality management system requirements in accordance with Sec.  
146.310.
    (3) Change management requirements in accordance with Sec.  
146.315.
    (4) Training requirements in accordance with Sec.  146.320.
    (5) Reporting requirements in accordance with Sec.  146.325.
    (6) Record retention requirements in accordance with Sec.  146.330.
    (7) Automated service data exchange requirements in accordance with 
Sec.  146.400.
    (8) Software update requirements in accordance with Sec.  146.405.
    (d) Third-party vendor. A certificated service provider may rely on 
services provided by a third party to meet the requirements of this 
part if:
    (1) The service is not specific to an aviation safety function; or
    (2) The third party holds a certificate and service authorization 
under this part.
    (e) Impartiality. A certificated service provider under this part 
must provide their service to users in a reasonable and non-
discriminatory manner, as applicable.
    (f) Compliance with applicable laws. A certificated service 
provider providing services under this part must be authorized to 
conduct business in the United States and otherwise be in compliance 
with applicable law, including but not limited to those relating to 
data privacy and security.


Sec.  146.305  Cybersecurity.

    (a) Cybersecurity policy required. A certificated service provider 
must develop and implement cybersecurity policies and processes to 
protect networks, devices, and data from unauthorized access and to 
ensure integrity, accuracy, and reliability of the services provided to 
the customer.
    (b) Contents of policy. The cybersecurity policy required under 
this section must include processes for--
    (1) Protecting software, hardware, and network computing 
infrastructure necessary to protect the authorized service from 
unauthorized access;
    (2) Ensuring the certificated service provider's employee access 
privileges are limited to those necessary to fulfill normal job duties;
    (3) Preparing for, responding to, and mitigating the impact of 
cyber attacks;
    (4) Collecting and analyzing data to measure the effectiveness of 
the cybersecurity policy and processes; and
    (5) Revising the cybersecurity policy.


Sec.  146.310  Quality management system.

    (a) General. A certificated service provider must develop, 
implement, and document a quality management system acceptable to the 
Administrator to ensure that the services provided by the certificated 
service provider, or any third-party vendor's services that the 
certificated service provider relies on, meet the minimum requirements 
of this part.
    (b) Safety management system. The quality management system must 
meet the requirements of part 5 of this chapter; except the 
certificated service provider is not required to comply with the 
following provisions: Sec. Sec.  5.7, 5.9, 5.11, 5.13, 5.15, 5.27, and 
5.71(c) of this chapter.
    (c) Software update procedures. A certificated service provider's 
quality management system must include a process for managing software 
updates that reduces the risk of introducing a hazard into the services 
authorized under this part, including but not limited to the 
requirements in Sec.  146.405.
    (d) Third-party vendor requirements. A certificated service 
provider must develop, implement, and document a process to monitor 
services provided by third parties, to detect failures or other 
performance issues that would adversely impact the certificated service 
provider's ability to meet the requirements of this part.
    (e) Testing and verification.
    (1) A certificated service provider must develop, implement, and 
document procedures to test and verify that the authorized services 
continue to meet the requirements of this subpart. The procedures must 
include the frequency of testing and the criteria the certificated 
service provider will apply to determine whether those services comply 
with this part.
    (2) A certificated service provider must make all documentation of 
its testing and verification procedures available to the Administrator 
upon request.
    (f) Service difficulty reports. A certificated service provider 
must--
    (1) Have a readily available means to accept reports about the 
failure, malfunction, or defect in an authorized service that has 
endangered or may endanger the safe operation of an aircraft;
    (2) Notify their users of that means to submit these reports; and
    (3) Upon request, provide to the Administrator these reports, 
related data, and documentation of any corrective actions taken by the 
certificated service provider.


Sec.  146.315   Change management.

    (a) General. A certificated service provider must develop, 
implement, and document a change management policy to ensure updates, 
amendments, or other changes to its software and technology do not 
adversely affect the performance level of the authorized services it 
provides under this part.
    (b) Notice. A certificated service provider must notify FAA in 
writing of any change to its software or technology

[[Page 38389]]

that may affect the certificated service provider's ability to meet the 
authorized service requirements of this part, except as provided in 
Sec.  146.405.
    (c) Review. The Administrator may review the change management 
documentation supporting any change to a service authorized under this 
part.


Sec.  146.320   Training program.

    (a) General. A certificated service provider must establish a 
training program to ensure anyone who performs, either directly or 
under contract, functions related to the development or performance of 
authorized services has the knowledge and skills necessary to ensure 
the organization's compliance with this part.
    (b) Topics. The training program must cover, at a minimum--
    (1) Best practices in distributed software development;
    (2) Applicable regulations and Advisory Circulars relating to 
automated data services, airspace classification, operating 
requirements, and flight restrictions;
    (3) Aviation safety culture concepts; and
    (4) Best practices in the provision of automated data services for 
aviation users.
    (c) Recurrence. The training program must include recurrent 
training elements that are provided not less than once per calendar 
year.


Sec.  146.325   Reportable occurrences.

    A certificated service provider must report the following incidents 
in a form and manner acceptable to the Administrator--
    (a) An unscheduled service outage;
    (b) A security breach that results in unauthorized access to the 
certificated service provider's networks, devices, or data irrespective 
of whether it affects the integrity, accuracy, or reliability of the 
services provided to the service recipient; and
    (c) Any other occurrence specifically identified in a certificate 
or authorization issued under subparts B or C of this part.


Sec.  146.330   Record retention.

    (a) Certificate. A certificated service provider must retain data 
and documentation submitted to the Administrator in support of their 
application for certification for the duration of their certificate 
plus an additional 24 months.
    (b) Authorized Service. A certificated service provider must retain 
the following for the duration of their service authorization plus an 
additional 24 months:
    (1) Documentation and data submitted to the Administrator in 
support of service authorization.
    (2) Records of testing required under subpart E of this part.
    (3) Service difficulty reports and supplemental reports submitted 
to the certificated service provider about the failure, malfunction, or 
defect in an authorized service.
    (c) Additional Information. The Administrator may request that the 
certificated service provider retain certain additional information, as 
necessary, in the interest of safety, efficiency, and fair access.
    (d) Authorized service data exchange. The certificated service 
provider must preserve and maintain all data exchanged with customers 
or other airspace users as a part of providing an authorized service 
under this part for a minimum of 6 months from the time of the data 
exchange.
    (e) Training.
    (1) The certificated service provider must retain records of 
training given to its personnel for a minimum of 2 years following 
completion of training.
    (2) In the event of a personnel-employer separation, the 
certificated service provider must retain records of the individual's 
training for 12 months after the separation from employment.
    (f) Audits and Inspection. The certificated service provider must 
provide records kept under this part to the Administrator within a 
reasonable time after a request.

Subpart E--Authorized Service Requirements


Sec.  146.400   Authorized service data exchange requirements.

    (a) Interoperability. Services authorized under this part must be 
able to exchange data automatically and securely with both the user and 
other authorized service providers when necessary for provision of the 
service, irrespective of the user's or other provider's digital 
platform.
    (b) Safeguards. Services authorized under this part must contain 
safeguards and other measures to ensure the integrity, accuracy, and 
reliability of the data exchanged with the user including, but not 
limited to, those required in this section.
    (c) Authentication. Services authorized under this part must use an 
access and authentication method that prevents unauthorized access to 
or interference with data exchanged with the user.
    (d) Non-repudiation. Services authorized under this part must use a 
validation and verification method that provides assurance of the 
integrity and origin of the data exchanged with the user.
    (e) Equitability. A certificated service provider under this part 
must provide their service to users in a reasonable and non-
discriminatory manner, as applicable.


Sec.  146.405   Software updates.

    (a) General. Prior to releasing changes to an authorized service's 
software, a certificated service provider must verify that the change 
does not adversely affect a person's ability to operate safely in the 
airspace. For the purposes of this section, a person includes the 
certificated service provider's customer as well as other airspace 
users or services that rely on data exchanges with the authorized 
service.
    (b) Versioning. The certificated service provider must use a 
generally accepted industry standard for assigning version numbers to 
software changes.
    (c) Testing required.
    (1) Prior to releasing any software change, the certificated 
service provider must conduct testing to verify that the change does 
not adversely affect the authorized service's ability to meet the 
requirements of this part.
    (2) A certificated service provider must make all documentation of 
the testing and verification under this section available to the 
Administrator as soon as possible, but in no case later than 24 hours, 
after receiving a written request from the Administrator.
    (3) The Administrator may request that a certificated service 
provider conduct additional testing or verification to demonstrate that 
authorized services meet the performance requirements of this part. A 
certificated service provider must conduct the testing or verification 
as soon as practicable after receiving a written request from the 
Administrator.
    (d) User notification.
    (1) The certificated service provider must provide reasonable 
notice to all users prior to any anticipated downtime, including the 
date, time, and expected duration of the downtime.
    (2) Prior to releasing changes to an authorized service's software, 
including patch updates, the certificated service provider must provide 
reasonable notice to enable the user to evaluate potential effects on 
operations and make necessary operational adjustments.
    (3) User notice must provide a description of the change, 
including--
    (i) Providing the new version identifier;
    (ii) Explaining the nature of the change;

[[Page 38390]]

    (iii) Identifying differences in features, functionality, or user 
experience; and
    (iv) Explaining any actions the user must take to ensure the 
authorized service meets the required performance levels following the 
change.
    (4) The certificated service provider must keep a record of each 
update under this section for not less than two years from the date the 
update was released, including the information required by paragraph 
(d)(2) of this section.
    (e) FAA notification. The certificated service provider must 
provide notice of minor and major updates to software used to deliver 
an authorized service in a form and manner acceptable to the 
Administrator as follows:
    (1) Minor update:
    (i) Service Level 1: the certificated service provider must notify 
the Administrator at least one business day prior to release;
    (ii) Service Level 2: the certificated service provider must notify 
the Administrator at least 3 business days prior to release;
    (iii) Service Level 3: the certificated service provider must 
notify the Administrator at least 5 business days prior to release.
    (2) Major update: Service Level 1: the certificated service 
provider must notify the Administrator at least 5 business days prior 
to release.
    (f) FAA approval required. The certificated service provider must 
obtain approval in a form and manner acceptable to the Administrator 
prior to releasing the major updates to software used to deliver an 
authorized service at Service Levels 2 and 3.
    (g) Discontinuing superseded software versions. Unless otherwise 
authorized by the Administrator, when releasing a major update to an 
authorized service, the certificated service provider must--
    (1) Maintain the most recent previous version of the authorized 
service with full functionality for a minimum of 60 days from the 
release date; and (2) Notify customers a minimum of 7 calendar days 
prior to removing full functionality of the prior version of the 
authorized service.
    (h) Exceptions. Paragraph (g)(1) of this section does not apply if 
a set of authorized services provisioned by more than one automated 
data service provider must be updated in a coordinated, planned, or 
simultaneous manner in order to maintain interoperability.

Subpart F--Due Process


Sec.  146.500   Revocations, Emergency Suspensions, and Requests for 
Reconsideration.

    (a) Revocation. The Administrator may revoke a service 
authorization issued under this part to preserve the safety in air 
commerce and the public interest.
    (b) Process. Except as provided in paragraph (c) of this section, 
the Administrator will follow the following procedure to revoke a 
service authorization:
    (1) The responsible FAA office notifies the authorization holder in 
writing of the proposed revocation.
    (2) The written notification sets a reasonable period (but not less 
than 7 days) within which the authorization holder may submit written 
information, views, and arguments on the revocation.
    (3) After considering all material presented, the responsible FAA 
office notifies the certificate holder of the revocation decision or 
withdrawal of the proposed revocation.
    (4) If the responsible FAA office decides to revoke the service 
authorization, it becomes effective within 15 days after the 
authorization holder receives notice of the decision unless the FAA 
issues an emergency suspension under paragraph (c) of this section or 
the certificate holder petitions for reconsideration under Sec.  
146.505.
    (c) Emergency suspension of a service authorization. The FAA may 
immediately suspend a service authorization if it finds that an 
emergency exists requiring immediate action to ensure safety in air 
commerce or transportation that makes the procedures set out in this 
section impracticable or contrary to the public interest, notifying the 
authorization holder:
    (1) Of the immediate suspension of the service authorization 
effective on the date the notification is sent.
    (2) Of the basis for the FAA's finding that an emergency exists 
requiring immediate action with respect to safety in air transportation 
or air commerce or that makes it impracticable or contrary to the 
public interest to stay the effectiveness of the emergency suspension.


Sec.  146.505   Petition to reconsider.

    (a) General.
    (1) Any applicant for service authorization or the holder of a 
service authorization provider may submit a petition in a form and 
manner acceptable to the Administrator within 60 calendar days of an 
application denial, revocation, or emergency suspension of an 
authorization issued under this part.
    (2) Any applicant or certificated service provider may submit a 
petition in a form and manner acceptable to the Administrator within 60 
calendar days of a denial of a certificate issued under this part.
    (b) Error. The petition must demonstrate that the Administrator 
issued their decision in error, resulting in the denial of an 
application for a certificate or authorization, or the revocation, or 
suspension of an authorization, by showing one of the following:
    (1) A material fact exists that was not previously presented to the 
Administrator.
    (2) The Administrator relied on a material error of fact.
    (3) The Administrator did not correctly interpret a law, 
regulation, or precedent.
    (c) Decision. The Administrator will consider the information 
submitted under this section and determine whether to withdraw the 
denial, revocation, or suspension, as applicable.

Title 49--Transportation

Chapter XII--Transportation Security Administration, Department of 
Homeland Security

Subchapter C--Civil Aviation Security

PART 1540--CIVIL AVIATION SECURITY: GENERAL RULES

0
43. The authority citation for part 1540 continues to read as follows:

    Authority:  49 U.S.C. 114, 5103, 40113, 44901-44907, 44913-
44914, 44916-44918, 44925, 44935-44936, 44942, 46105.

0
44. Amend Sec.  1540.5 by adding, in alphabetical order, the terms 
``unmanned aircraft'' and ``unmanned aircraft system'', to read as 
follows:


Sec.  1540.5  Terms used in this subchapter.

* * * * *
    Unmanned aircraft means an aircraft that is operated without the 
possibility of direct human intervention from within or on the 
aircraft.
    Unmanned aircraft system (UAS) means an unmanned aircraft and 
associated elements (including communication links and the components 
that control the unmanned aircraft) that are required for the operator 
to operate safely and efficiently in the national airspace system.

PART 1544--AIRCRAFT OPERATOR SECURITY: AIR CARRIERS AND COMMERCIAL 
OPERATORS

0
45. The authority citation for part 1544 continues to read as follows:


[[Page 38391]]


    Authority:  49 U.S.C. 114, 5103, 40113, 44901-44905, 44907, 
44913-44914, 44916-44918, 44932, 44935-44936, 44942, 46105.

0
46. Amend Sec.  1544.1 by revising paragraph (a)(1) to read as follows:


Sec.  1544.1  Applicability of this part.

    (a) This part prescribes aviation security rules governing the 
following:
    (1) The operations of aircraft operators holding operating 
certificates under 14 CFR part 119 for scheduled passenger operations, 
public charter passenger operations, private charter passenger 
operations; the operations of aircraft operators holding operating 
certificates under 14 CFR part 119 operating aircraft with a maximum 
certificated takeoff weight of 12,500 pounds or more; UAS operators 
permitted or certificated under 14 CFR part 108; and other aircraft 
operators adopting and obtaining approval of an aircraft operator 
security program.
* * * * *
0
47. Amend Sec.  1544.101 by revising paragraph (g) to read as follows:


Sec.  1544.101  Adoption and implementation.

* * * * *
    (g) Limited program: In addition to paragraph (d) of this section, 
if applicable, TSA may approve a security program after receiving a 
request by an aircraft operator holding a certificate under 14 CFR part 
119, other than one identified in paragraph (a), (b), (d), or (f) of 
this section, or a UAS package delivery operator permitted or 
certificated under 14 CFR part 108. The aircraft operator must--
* * * * *

    Proposed amendments to title 14 CFR chapter I issued under 
authority provided by 49 U.S.C. 106(f), 40103(b), 44701(a)(5), 
44807, 44808, 44811, and Sec. 932 of Pub. L. 118-63 in Washington, 
DC.
Bryan Bedford,
Administrator, Federal Aviation Administration.

    Proposed amendments to 49 CFR chapter XII issued under authority 
provided by 49 U.S.C. 114, 44901, and 44903.
Ha Nguyen McNeill,
Acting Administrator, Transportation Security Administration.
[FR Doc. 2025-14992 Filed 8-6-25; 8:45 am]
 BILLING CODE 4910-13-P