1. mckennalong.com Commercial UAS Operations Where We Are and Where We Are Going March 24, 2015

2.  No Immediate Effect on Existing UAS Law  All Commercial UAS Operations Still Illegal without Approval  Only Path for Approval Currently is Section 333 Exemption process  No impact on Conditions for Grant of Exemption  Pilot License still required  Public Entities Still Must go through COA Process Effect of the NPRM

3.  NPRM Publicly Released at 10 AM Sunday Press Conference on February 15, 2015  NPRM Opened for Comment on February 23, 2015  Comment Period Closes April 24, 2015  Comment period can be extended by FAA  FAA Conducts Analysis and Internal Review of Comments  Release of Final Rule sometime in 2017 Timeline

4.  Rules will be codified in the Federal Aviation Regulations  Proposes creation of new FAR Part 107  Regulations will be enforceable in the same way as any other portions of the FARs  FAA Civil Penalty system will apply to violations of the new regulations  FAA will take certificate actions against unsafe UAS Operators Small UAS Rules

5.  Crop Monitoring/Inspection;  Research And Development;  Educational/Academic Uses;  Power-line/Pipeline Inspection In Mountainous Terrain;  Antenna Inspections;  Aiding Certain Rescue Operations Such As Locating Snow Avalanche Victims;  Bridge Inspections;  Aerial Photography; And  Wildlife Nesting Area Evaluations. FAA’s Position On The Type Of Work That Can Be Performed Under Part 107

6.  Creation of new UAS Operators Certificate  Regulations do not refer to them as “Pilots”  Proficient in English  Must be at least 17 years old  Must pass an Initial Aeronautical Knowledge Test  Tests administered at FAA-approved Knowledge Test Centers  TSA Background Check  No Medical Certificate  No vision test  No requirement to demonstrate flight proficiency  Application process expected to take 6-8 weeks Part 107 - Pilot Issues

7.  Currently Required for Section 333 Operations  Visual Observers Optional under Part 107  No Certificate for Visual Observers  No Medical Certificate required  Visual Observer and Pilot may be separated if they can communicate by radio or similar device Part 107 – Visual Observer

8.  The heart of all Part 91 Operations is “see and avoid”  All flights must be conducted where the Operator can see the aircraft at all times  Beyond Line of Sight (BLOS) not permitted  If a Visual Observer is used, the Operator would not be required to fly based on Visual Line of Sight (VLOS), but the Operators must still have the capability of exercising control based on VLOS  “Daisy-Chain” of Visual Observers cannot be used to extend VLOS Part 107 - Visual Line of Sight (VLOS)

9.  FAA Acknowledges First Person View (FPV) technology but believes there are reliability issues that still need to be resolved  Serious concerns on “tunnel vision” effect of FPV.  FAA leaves open the use of FPV technology in the future Part 107 - Visual Line of Sight (VLOS)

10.  Operator is primarily responsible for all see and avoid  Sense and Avoid technologies cannot be used as a substitute for see and avoid  While there are solutions to these problems such as Traffic Collision Avoidance System (TCAS) and transponders, size, weight, and cost issues preclude their widespread use on small UAS at this time  Serious concerns about lost link or other loss of positive control of the UAS issues for BLOS flight Part 107 – See and Avoid vs. Sense and Avoid

11.  Operation in Class A Airspace Prohibited (18,000’+)  Operation in Class B, C, or D airspace permitted only with permission from Air Traffic Control (ATC)  Operation in lateral boundaries of the surface area of Class E airspace designated for an airport only permitted with ATC permission.  No equipment technically required for operating in B, C or D airspace  Procedures are left to local ATC  For recurring operations, a Letter of Agreement can be used to establish procedures Part 107 - Airspace Restrictions

12.  UAS cannot fly in airspace restricted by a NOTAM  Operation above 500 feet prohibited  FAA recognizes there is a risk posed to low level operators such as aerial applicators, helicopter air ambulance services Part 107 - Airspace Restrictions

13.  Maximum take-off weight 55 pounds  Maximum air speed 87 knots (100 MPH)  Flights only permitted in daylight  Daylight determined based on official times of sunrise and sunset in tables contained in the Federal Air Almanac  Minimum visibility 3 miles  Must keep no less than 500 feet below clouds and 2,000 feet horizontal separation from clouds  UAS must always yield right-of-way to other aircraft  Yielding the right-of-way means that the small unmanned aircraft must give way to the aircraft or vehicle and may not pass over, under, or ahead of it unless well clear Part 107 - Operational Restrictions

14.  Objects cannot be dropped from the UAS if it causes a hazard to persons or property on the ground  UAS operators and visual observers would also be subject to the existing regulations of § 91.19, which prohibit knowingly carrying narcotic drugs, marijuana, and depressant or stimulant drugs or substances  UAS cannot be operated in a careless or reckless manner Part 107 - Operational Restrictions

15.  You cannot fly directly over persons  Examples provided by the FAA seem more restrictive than the broad wording of the regulations:  Select an operational area that is clearly unpopulated or uninhabited  Establish an operational area that the operator has taken reasonable precautions to keep free of persons not involved in the operation Part 107 - Operational Restrictions

16.  FAA Has not placed official limits on who can file or what types of operations will be considered  However, all Section 333 operations are expected to comply with the FARs  If there is a FAR that cannot be complied with, the operator must propose an alternative method of compliance that has an equivalent level of safety Section 333 Authorizations 16

17.  FAA has granted exemptions where the flights will be:  Outside Controlled Airspace, i.e. Generally Below 400 Feet  In a Defined, Controlled Area  Away From Persons or Property  Within Visual Line-of-Sight  Flown by a Small UAS  Use a Visual Observer and Separate Sensor Operator Section 333 Exemptions - What is the FAA Looking For? 17

18.  The FAA has ruled out the following types of operation:  Flight beyond visual line of sight using GPS or other “sense and avoid” technology  Flight based on First Person View (FPV) technology  Flight of a UAS by a person without a private pilot’s license Section 333 Exemptions - The FAA is Will Not Approve High Risk Operations 18

19.  Airworthiness Certificate  Aircraft Markings and Identification  Flight Manual and Registration Certificate Location  Preflight Actions  Minimum Safe Altitude  Altimeter Settings  Fuel Requirements  Maintenance Inspections Section 333 Exemptions – FARs You Need an Exemption From 19

20.  The FAA has stated that it does not have the authority to waive the requirements of 14 CFR Part 61 or Part 67  All UAS pilots will require a minimum of a private pilots license for both safety and national security reasons  All UAS pilots will require a minimum of a class III Medical Certificate  All Pilots will require experience, both in terms of logged UAS flight hours and flight cycles  All pilots will need to meet currency requirements Section 333 Exemptions – Pilot Qualifications and Certifications 20

21.  FAA provided additional guidance recently:  Petitioner had asked for permission to be within 100’ of persons not essential for flight operations (i.e. workers at a construction site)  Request was denied, FAA affirmed the existing 500’ rule applicable to aircraft  However, given the small size of the UAS, permission was granted to be closer to non-participating workers if they were shielded by structures at all times  If a person becomes unshielded and is within 500’, flight must be immediately terminated  FAA gave permission to operate closer than 500' to structures if permission is granted by the owner and the pilot makes a determination that flight safety is not compromised Section 333 Exemptions – Separation from Structures or Persons

22.  Petition is filed on-line at Regulations.gov  FAA Posts the Petition for Public Comment within 1-2 weeks  Notice and Comment Period Lasts 21 Days  The FAA will contact you with Questions if they need more data  FAA’s Goal is to Provide a Ruling on the Petition in 120 days Section 333 Exemptions – Timing Issues 22