Terrafugia Inc. 23 Rainin Road Woburn, MA 01801 T: +1

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August 3 , 2015

Ms. Brittany Newton Program Analyst Airmen and Airspace Rules Division

via

U.S. Department of Transportation Docket Management System West Building Ground Floor, Room W12

- 140 1200 New Jersey Avenue, SE Washington, DC 20590

Re: Terrafugia Exemption Request , Docket No. FAA

- 2015

- 1382

Dear Ms. Newton :

The FAA recently requested that additional information be provided in regards to Terrafugia’s exemption request pursuant to Section 333 of the FAA Reform Act and Part 11 of the Federal Aviation Regulations. Please consider the following as a revision of the orig inal petition filed April 21, 2015.

Terrafugia is developing the TF

- XTM, which is our vision for the future of personal transportation. A four

- seat, plug

- in hybrid electric flying car with fly

- by

- wire vertical takeoff and landing (VTOL) capabilities, TF

- X TM is designed to bring personal aviation to the world. The design will make use of the high power density and reliability of modern electric motors in combination with parallel power and control system architectures to achieve a higher level of safety tha n modern automobiles. TF

- XTM will provide true door

- to

- door transportation combined with the freedom of vertical takeoff and landing

– creating a new dimension of personal mobility.

We are constructing three small, working scale models of the vehicle, eac h of which weighs less than 10 kg . We would like to operate these models outdoors, un der controlled conditions andPage 2 of 6

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- 0282 in low altitude airspace, as detailed in section (e) . The models will be operated exclusively by Terrafugia’s trained research and development ( R&D ) engineers.

Therefore, p ursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (the “Reform Act”) and CFR Part 1 1, Terrafugia , an operator of Small Unmanned Aircraft Systems ( s UAS) for R&D
, hereby applies for an exemption from the Federal Aviation Regulations (FAR) to allow these operations of our UAS for R&D purposes

.
Approval of this exemption is consistent with the Notice of Proposed Rulemaking regarding 14 CFR Part 107 , which aims to “allow small unmanned aircraft syst ems (small UAS) to operate for

non

- hobby or non

- recreational purposes.” While the Rulemaking process is ongoing, allowing this exemption provides a means of satisfying the mandate of Section 333 of the Reform Act to “accelerate the integration of civil un manned aircraft systems into the national airspace system.”

Attached to this Exemption Request is the latest version of the Terrafugia Flight Operations and Procedures Manual for the TF

- XTM RC model sUAS. Any subsequent models would have a TFOPM based substantially on this document with updates as appropriate. As company proprietary information, we hereby request that this document be deemed confidential information and not available for public disclosure.

If any additional information is needed, plea se contact me at (781) 491

- 0812 or richard@terrafugia.com.

Thank you for your consideration.

Regards,

Richard Gersh Vice President, Risk Management Terrafugia, Inc. 23 Rainin Road Woburn, MA 01801Page 3 of 6

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## Information supporting this Petition as Specified in 14 CFR §11.81

(a) Name, mailing address and other contact information
Terrafugia, Inc. Attn: Richard Gersh Ph: 781

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(b) The specific section or sections of 14 CFR from which Terrafugia seeks an exemption

14 CFR 21 Subpart H

– Airworthiness Certificate 14 CFR 45.23(b)

– Marking of the Aircraft 14 CFR 61.113(a) and (b)

– Pilot Privileges 14 CFR 61.133(a)

– Commercial Pilot Privileges 14 CFR 91.7(a)

– Civil Aircraft Airworthiness 14 CFR 91.9(b)(2)

– Civil Aircraft Flight Manual in the Aircraft
14 CFR 91.105

– Flight Crewmembers at Stations
14 CFR 91.109

– Flight Instruction
14 CFR 91.119

– Minimum Safe Altitudes
14 CFR 91.121

– Altimeter Settings
14 CFR 91.152

– Fuel Requirements for VFR Flights 14 CFR 91.203(a) and (b)

– Carrying Civil Aircraft Certification and Registration 14 CFR 91.405(a)

– Maintenance Required 14 CFR 407(a)(1)

– Operation after Maintenance
14 CFR 40 9(a)(2)

– Inspections 14 CFR 417(a) and (b)

– Maintenance Records

Appendix A discusses each section in detail, indicating the rationale for the request, the safety considerations, and that they are in the public interest.
(c) The extent of relief Terrafugia seeks, and the reason Terrafugia seeks the relief

As listed above, Terrafugia seeks an exemption from several provisions of 14 CFR 21, 45, 61, 91, 407, 409, and 417 to the extent necessary to engage in private, R&D operations of sUAS on our own property a nd at appropriate testing locations 1

.

1 Some potential testing locations are listed in Section 4 of the Terrafugia Flight Operations and Procedures Manual , which is attached to this document.Page 4 of 6

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- 0282 If Terrafugia is not granted this exemption, we will be forced to conduct TF

- XTM technology d evelopment in other countries. This would represent an immediate loss of investment capital in the U.S. economy , a potentiall y severe program delay, and highly detrimental effects to the long term future of personal aviation in the United States relative to other countries

. The countries that allow this type of technology development will surpass those that do not as measured by both the level of safety of personal aviation and the economic output associated with personal aviation.
(d) The reasons why granting Terrafugia’s request would be in the public interest; that is, how it would benefit the public as a whole

The development an d flight testing of TF

- X TM scale models is in the direct interest of the public as it is a critical early step towards realizing the potential widespread benefits of the full

- scale TF

- X TM vehicle. By combining vertical takeoff and landing with semi

- autonomous flight and road

- going capability, the TF

- X TM will allow faster, safer, and more widely accessible door

- to

- door travel than what can be achieved by any other means of transportation fo r trips up to 500 miles. Trips shorter than 500 miles represent the majority of trips taken in the United States, including the vast majority of commuter travel.

By reducing the average travel time, the TF

- XTM will allow the public to spend less time stuc k in traffic and more time doing economically productive activities
, which will result in increased standards of living and growth in the GDP of the United States. According to the 2012 Urban Mobility Report 2 , in 2011, it was estimated that the total cost of traffic congestion in the U.S. was $121 billion, with $94 billion of that due to individual commuters’ lost time and fuel. It is expected that by 2020, the national congestion cost will be $199 billion with a delay of 8.4 billion hours. T raditional m eans of addressing congestion, including improving highway capacity and increasing the use of public transportation, are not sufficient, potentially addressing only 23% of the congestion cost.

The TF

- XTM vehicle has the potential to dramatically reduce tra ffic congestion and its associated costs by making aviation a safe and accessible mode of travel. It is expected to achieve a much higher level of safety than can be found in today’s personal aircraft by both lower ing the risk of pilot error through autom ation and incorporating automotive crashworthiness features

. By iterating with sub

- scale models of the TF

- X TM , the use of which is being requested herein, the development program can begin to make significant early strides towards the realization of the pu blic benefit associated with the full

- scale production TF

- X TM

.

2 Texas A&M Transportation Institute, D. Schrank, B. Eisele, & . Lomax. http://mobility.tamu.eduPage 5 of 6

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- 0282 (e) 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 Terrafugia seeks the exemption

As described in the introduction, Terrafugia wishes to operate these small UAS outdoors, under controlled conditions
, and in low altitude airspace using our trained R&D engineers as operators

. We are in the process of identifying and holding discussions with appropriate testing locations. Parameters would be set such that an equivalent level of safety to currently authorized operations using manned aircraft and conducted under conditions as
may be modified by the FAA as required by Section 333 is maintained

. The established operating limitations set forth in the Terrafugia Flight Operations and Procedures Manual ( herein referred to as TFOPM , attached ) provide this equivalent level of safety. As outlined in the TFOPM, operational limitations and conditions include (but are not limited to) the following:

 The s UAS will weigh no more than 10 kg (22 lb)

 Visual line

- of

- sight (VLOS) operations only

 Daylight

- only operations in design ated areas defined in TFOPM

 Maximum speed 120 mph

 Maximum altitude 400 feet above ground level (AGL)

 Minimum weather visibility of 3 statute miles from control station

 If appropriate permission from air traffic control and/or airport management is not available , operations will be conducted more than:

o 5 nautical miles from a controlled airport

o 3 nautical miles from an airport with a published instrument flight procedure

o 2 nautical miles from any airport

o 2 nautical miles from any heliport with an instrument flight procedure

 Preflight inspection required

 Maximum flight time 2 0 minutes

 Operator will conduct a pre

- flight safety briefing to include all flight test team members

 All members of the test team will be able to communicate by voice at all ti mes

 If the s UAS loses communications, it will have the capability to land immediately.Page 6 of 6

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- 0282 (f) A summary the FAA can publish in the F EDERAL R EGISTER , stating: (1) the rule from which Terrafugia seeks the exemption; and (2) a brief description of the nature of the exemption Terrafugia seeks

(1) Sections of CFR from which Terrafugia seeks the exemption: 14 CFR §§ 21, 45, 61, 91, 407, 409, and 417

.
(2) Terrafugia seek s an exemption from several provisions of 14 CFR §§ 21, 45, 61, 91, 407, 409, and 417 to the extent necessary to engage in private, R&D operations of sUAS on our own property and at appropriate testing locations. These sUAS are scale models of Terrafugia’s TF

- XTM semi

- autonomous flying and driving vertical take

off and lan ding hybrid vehicle. The models will be 10kg or less in weight and be operated by appropriately trained Terrafugia personnel under visual

- line

- of

- sight, in daylight conditions only, below 400 feet and with a maximum speed of 120 mph. These sUAS operation s are critical to the development program of the TF

- XTM and thus stand to benefit the public by addressing the anticipated traffic congestion
costs in the U.S. (projected to be $199 billion in 2020) with a safe, convenient, and accessible form of alternativ e personal transportation.

(g) Any additional information, views or arguments available to support Terrafugia’s request
Please see the introduction to this exemption request.

A lso, a computer rendering of the functionality and operation of the full

- scale TF

- X TM can be found online: http://www.terrafugia.com/tf

- x

. (h) If Terrafugia wants to exercise the privileges of our exemption outside the United States, the reason why Terrafugia needs to do so.
The R&D operations described in this exemption request will be condu cted entirely within the United States.Page A 2 of A 5

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## Appendix A : Exemption Request and Equivalent Level of Safety under Applicable Rules

Terrafugia requests an exemption from the following regulations:

14 CFR § 21 Subpart H

– Airworthiness Certificate
This regulation requires all civil aircraft to have a C ertificate of A irworthiness. Given the small size and operating limitations of the TF

- XTM model (s)
, an appropriate level of safety is provided by complying with the guidelines established in the Terrafugia Flight Operations and Procedures Manual

. This is consistent with the mandate in the Federal Aviation Act and Section 333 of the Reform Act, which authorize the FAA to exempt aircraft from the requirement of an airworthiness certificate upon appropriate consideration of its operational capabilities.

14 CFR § 45.23(b)

– Marking of the Aircraft
Given the preceding request to waive the airworthiness certificate requirement, this regulation regarding the display of the word “Experimental” on the aircraft in letters not less than 2 inches nor more than 6 inches on the airc raft may be inapplicable. However, all such markings, including the aircraft’s “N” number will be limited, given the size of the aircraft. Terrafugia will, where appropriate and possible
, show identification marking s on the TF

- XTM RC model

.
14 CFR § 61.113(a) and (b) ; § 61.133(a)

– Private Pilot Privileges and Limitations; Commercial Pilot Privileges and Limitations
Section 61.113(a) and (b) limit s private pilots to non

- commercial operations. Section 61.133(a) mandates that an individual with a commer cial pilot’s certificate be in command of an aircraft for compensation or hire.
The risks associated with the flight operations of the Terrafugia sUAS are minimal. There are no
crew or passengers on board the aircraft, and it is operat ed within sight of t he operator at a maximum altitude of no more than 400 feet. T he number of observers on the ground will be small and primarily limited to those necessary for R&D activities . Terrafugia requests approval to utilize an individual trained in the operation of the TF

- XTM RC model to act as Operator of the Terrafugia sUAS.

14 CFR § 91.7(a)

– Civil Aircraft Airworthiness
This regulation requires that “ no person may operate a civil aircraft unless it is in airworthy condition. ” The TF

- XTM RC model will be operated in compliance with the airworthiness guidelines established by the Terrafugia Flight Operations and Procedures Manual, providing an equivalent level of safety for an aircraft under an airworthiness certificate. ( This exemption would be required assuming that an airworthiness certificate will not be required for the TF

- X TM RC model. )Page A 3 of A 5

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– Civil Aircraft Flight Manual in the Aircraft
The regulation states that:

“ No person may operate a U.S. registered aircraf t

--- ( 2) For which an Airplane or Rotorcraft Flight Manual is not required by S21.5 of this chapter, unless available in the aircraft a current approved airplane or Rotorcraft Flight Manual, approved manual material, markings, and placards, or any combination th ereof. ”
Given the size of the Terrafugia sUAS, there is no capacity to carry such a manual on board. Additionally, with no pilot on board, the rationale for carrying such a manual is negated. This does not affect the level of safety. The flight manual wil l be kept in close proximity to the sUAS operator during each flight.

14 CFR § 91.105

– Flight Crewmembers at Stations
This regulation requires that each crewmember be situated at their assigned station (with appropriate restraints being utilized) during takeoff, landing and en route. Given that the TF

- XTM RC model is remotely operated, th ere are no crewmembers on board ; th us, we request an exemption from this regulation. The equivalent level of safety will be achieved through appropriate staffing of model operations with train ed personnel, as outlined in the Terrafugia Flight Operations and Procedures Manual

.
14 CFR § 91.10 9

– Flight Instruction
This regulation provides that “no person may operate a civil aircraft (except a manned free balloon) that is being used for flight instruction unless that aircraft has fully functioning dual controls.” The TF

- XTM RC model is a remote ly controlled aircraft and, by definition, does not have fully functional dual controls. A manufacturer

- approved training protocol is outlined in the Terrafugia Flight O perations and Procedures Manual, providing an equivalent level of safety.

14 CFR § 91.11 9

– Minimum Safe Altitudes
This regulation establishes safe altitudes for the operation of civil aircraft. It mandates that “except when necessary for takeoff or landing, no person may operate an aircraft below the following altitudes: ... (c) Over other than congested areas. An altitude of 500 feet above the surface, except over water or sparsely populated areas. In those cases, the aircraft may not be operated closer than 500 feet to any person, vessel, vehicle or structure.”
Given Terrafugia’s request to operate at altitudes below 500 feet, an exemption is needed to allow such operations. The risk of contact with manned aircraft is significantly reduced at this altitude, and the lack of flammable fuel also decreases the risks associated with these fli ghts.Page A 4 of A 5

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– Altimeter Settings
This regulation requires that “each person operating an aircraft shall maintain the cruising altitude or flight level of that aircraft, as the case may be by reference to an altimeter that is set to (iii) the e levation of the departure airport or an appropriate altimeter setting available before departure.”
An equivalent level of safety will be maintained, as outlined in the TFOPM, by confirming the altitude of the departure a rea , maintaining visual contact with the sUAS
, a t an altitude of 400 feet above ground level (AGL) or below

.
14 CFR § 91.151(a) and (b)

– Fuel Requirements for VFR Flights
This regulation prohibits a person from beginning a flight in an airplane under VFR conditions unless (considering wind and forecast weather conditions) there is enough fuel to fly to the first point of intended landing, and assuming normal cruising speed

--- (1) During the day, to fly after that for at least 30 minutes;
Similarly, no person may begin a flight in a rotorcra ft under VFR conditions unless (considering wind and forecast weather conditions) there is enough fuel to fly to the first point of intended landing and, assuming normal cruising speed, to fly after that for at least 20 minutes.
The Terrafugia TF

- X TM RC mod el uses lithium

- polymer batteries as a power source , which provide approximately 10 minutes of powered flight. Without relief from the subject regulation, flight testing of the vehicle would not be possible. Terrafugia believes that an equivalent level o f safety can be achieved by flying the aircraft in close proximity to the landing zone; a decrease in power will result in immediate landing.

14 CFR § 91.203(a) and (b)

– Carrying Civil Aircraft Certification and Registration
This regulation provides that “ (a) N o person may operate a civil aircraft unless it has within it the following: (1) An appropriate and current airworthiness certificate... ( b ) No person may operate a civil aircraft unless the airworthiness certificate required by paragraph (a) of this section...is displayed at the cabin or cockpit entrance so that it is legible to passengers or crew.”
An equivalent level of safety will be provided by maintaining airworthiness and registration documentation in close proximity to the sUAS operator at the ground flight control point; t here is no ability to display these documents on the aircraft.

14 CFR § 91.405(a) ; § 407(a)(1); § 409(a)(2); § 417(a)

– Maintenance Required , Inspections and Records
These regulations outline the requirements for inspectio ns, annual inspections, maintenance, and related recordkeeping for aircraft with an airworthiness certificate. Assuming that the TF

XTM RC model will not be required to have an airworthiness certificate, these sections will not apply. However, maintenance will be performed by appropriately trained Terrafugia personnel
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- 0282 in conjunction with the aircraft manufacturer’s guidelines as outlined in the Terrafugia Flight Operations and Procedures Manual, providing an equivalent level of safety, supporting the
gran t of the exemption requested.