### 1 900 Enchanted Way Simi Valley, CA 93065

January 26, 2015

U.S. Department of Transportation Docket Operations 1200 New Jersey Ave, SE Washington DC, 20590

RE: First Exemption Request for AeroVir onment, Inc. Under Section 333 of the

FAA Modernization and Reform Act of 2012 and 14 C.F.R. Part 11

Dear Sir or Madam,

Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 (“FMRA”) and 14 C.F.R. Part 11, AeroVironment, Inc. (“AV”) requests exemptions from several provisions of the Federal Aviation Regulations (“FAR”), specifically portions of 14 C.F.R. Parts 47, 61, and 91 to allow, among other things, commercial operations of its Shrike small unmanned aircraft systems (“Shrike”) in areas of the United States, as further defined herein, by a Pilot in Command holding a private pilot certificate. AV submits this application for approval of commercial operations for the Shrike request summary processing as the relief requested herein has been granted to others. Exemption 11109 and others, as set forth herein, authorize the commercial operation of small UASs on terms and conditions that AV accepts. 1

Shrike is a lightweight, battery-powered, hand-launched, small unmanned aircraft system (“UAS”) that, depending on its payload, is capable of transmitting live airborne video images and location information to a Ground Control Station (“GCS”). Shrike is designed for vertical take-off and landing (“VTOL”) with a maximum weight of 7.0 pounds, a length of 34.8 inches, a width of 35.3 inches, and a wingspan of 3.0 feet. It has a flight endurance of 40 minutes with a ground speed of between 4 to 15 meters (0 to 30 knots) per second in forward flight and typically operates at an altitude of less than 400 feet AGL. AV proposes to fly Shrike, a proven aircraft already operating in the United States under a certificate of authorization (“COA”) issued by the FAA to the University of Alaska Fairbanks (Exhibit C), for the intended purpose of inspecting fixed infrastructures in controlled environments. AV’s proven safety record, in tandem with the controlled environments in which Shrike will be operating make it clear that this unmanned aircraft can operate safely in the National Airspace System (“NAS”) without posing a threat to national security.

1 AV today has submitted a companion Section 333 application for the Shrike that requests authority to conduct commercial operations in Class E and D airspace as well as night operations

.

### 2 Shrike’s capabilities combined with AV’s successful unmanned flight experience to date, make it ideally suited to conduct commercial operations in carefully controlled environments under Class G airspace and within Visual Line of Sight (“VLOS”). Shrike operations are all conducted within visual line of sight (VLOS) and typically conducted within 500 meters of observer, thus enhancing safety procedures.

Acknowledging the FAA’s mission to provide the safest and most efficient airspace system in the world, commercial operations of Shrike will comply with applicable FAR provisions as well as AV’s operational risk management and safety protocols as outlined and defined in the attached exhibits. Exhibits A-B and D-F are submitted confidentially. AV will only fly in airspace as allowed under the exemption granted to it and will coordinate with the FAA as necessary to ensure safe operations.

As a result of the Shrike’s size, weight, maximum speed, operational capability, and safety record; the distance at which it will operate from airports and populated areas; its operation within VLOS of the PIC or the observer; its operation within controlled boundaries; and its operation using visual observers to provide de-confliction from other air traffic, the Shrike does not create a hazard to users of the NAS or the public. Nor does it pose a threat to national security. Therefore, the FAA should grant AV the requested exemptions. Alternatively, if the FAA finds that modification of AV's application is required for safe operation of the Shrike in the NAS, AV requests that the FAA delineate the required modifications and process AV's application as if the modifications were already made. 2

.

AV recognizes that the FAA has granted exemption with similar circumstances as noted in FAA Exemption Nos. 11109, 11111, 11114, 11136,11138.

This exemption request encompasses the following regulations with discussion for each

described herein:

14 C.F.R. 61.113(a) and (b) 14 C.F.R. 91.151 (b)

14 C.F.R. 61.133(a) 14 C.F.R. 91.405(a)

14 C.F.R. 91.7 (a) 14 C.F.R. 91.407(a)(1)

14 C.F.R. 91.121 14 C.F.R. 91.409(a)(2)

14 C.F.R. 91.417(a) & (b)

2 If the Secretary determines that any qualifying vehicle “may operate safely in the national airspace system, the Secretary shall establish requirements for the safe operation of such aircraft in the national airspace system.” Id. §333(c). Applicant interprets this provision to place the duty on the Administrator to not only process applications for exemptions under section 333, but for the Administrator to craft conditions for the safe operation of the UAS, if it should be determined that the conditions set forth herein do not fulfill the statutory requirements for approval.

### 3 The name and address of the applicant are:

AeroVironment, Inc. Address: 900 Enchanted Way, Simi Valley, CA 93065 Attn: Andy Thurling Attn: Doug Scott Phone: (805) 581-2198 x1892 Phone: (805) 581-2187 x2694 Fax: (805) 581-4512 Email: scott@avinc.com

Email: Thurling@avinc.com

Section 333's Mandate and the Federal Aviation Act

Grant of this exemption application for use of the Shrike in aerial surveillance pursuant to the exemption requested herein will advance the Congressional mandate in Section 333

of the FAA Reform Act to accelerate the introduction of UASs into the NAS. Section 333 directs the Secretary of Transportation to consider whether certain UASs may operate safely in the NAS before completion of the rulemaking required under Section 332 of the FAA Reform Act. To make that determination, the Secretary must evaluate which types of UASs do not create a hazard to users of the NAS or the public or pose a threat to national security in light of several criteria:

• The UAS's size, weight, speed, and operational capability;

• Operation of the UAS in close proximity to airports and populated areas; and

• Operation of the UAS within visual line of sight of the operator.

FAA Reform Act § 333(b)(1). Once the Secretary determines that such vehicles "may operate safely in the national airspace system, the Secretary shall establish requirements for the safe operation of such aircraft in the national airspace system." Id. § 333(c) (emphasis added).

The Federal Aviation Act expressly grants the FAA the authority to issue exemptions. 49 U.S.C.§ 44701(f). This statutory authority, by its terms, includes exempting civil aircraft, as the term is defined under §40101 of the Act, from the requirements that all civil aircraft must have a current airworthiness certificate, 49 U.S.C. § 44711(a), and those used in commercial service must be piloted by commercial pilots. 14 C.F.R. §§ 91.61.113(a) and (b), 61.133.

The grant of the requested exemption is in the public interest based on (i) the clear direction in Section 333 of the FAA Reform Act; (ii) additional authority in the Federal Aviation Act, as amended; (iii) the strong equivalent level of safety surrounding the proposed operations; and (iv) the significant public benefit, including enhanced safety and cost savings associated with utilizing UASs for agriculture, aerial survey photography, inspection and patrolling. Accordingly, AV respectfully requests that the FAA grant the requested exemption without delay.

Airworthiness

The Shrike is safe and fit for operation in the NAS under the conditions listed herein. Shrike has been safely operating under a COA issued by the FAA to the University of

### 4 Alaska Fairbanks since 2013. It complies with all aspects of the North Slope Standard Operating Procedures Manual accepted by the FAA and provided as supporting

documentation. Shrike has flown a total of 225 hours.

In support of this application, AV is submitting, with a request for confidentiality as shown, the following documents:

 Shrike Specifications and Description, Exhibit A (Confidential)

 Safety Components and Procedures, Exhibit B (Confidential)

 Shrike COA issued to the University Alaska Fairbanks, Geophysical Institute, dated Sept. 23, 2013, Exhibit C.

 AV Shrike Operations Manual, Exhibit D.(Confidential)North Slope Standard Operating Procedures Manual, Exhibit E.(Confidential)

 National Airspace Standard Operating Procedure, Exhibit F.(Confidential)

Mandatory Operating Conditions

AV proposes that the grant of the exemption be subject to the following mandatory conditions, which are based upon operating conditions set forth for operation of UAS by public entities pursuant to Certificates of Waiver or Authorization, and with additional

restrictions:

 All operations to occur in Class G airspace within controlled areas.

 Operations to be conducted over private or controlled-access property to limit the number of persons not associated with the operations place at risk.

 Permission from land owner/controller required before commencing any flight.

 Operations to occur during Visual Flight Rules Meteorological Conditions (VMC).

 Aircraft to remain within Visual Line of Sight (VLOS).

 Above Ground Level (AGL) altitude to be restricted to 400 feet.

 Flights over sensitive infrastructure such as pipelines or roads will be minimized to reduce the time the infrastructure is placed at risk, and

 Flights over sensitive infrastructure will be offset appropriately for the wind at the time of flight to reduce the risk to the infrastructure.

 Launch and recovery areas will be cordoned off to limit access only to personnel associated with the flight operation.

 A dedicated Visual Observer will be utilized to maintain overall operation situational awareness; maintain VLOS and scan for intruder traffic; monitor all radio communication to include “Guard” in accordance with any COA; and report on CTAF and other frequencies as appropriate.

 All operations conducted in vicinity of airport to remain more than 5 NM from centerline azimuth of runway centerline measured from runway thresholds.

 Operator will file a NOTAM for each flight.

 All required authorizations and permits will be obtained from territorial, state, county, or city jurisdictions, including local law enforcement, fire, or other governmental agencies.

 Flight operations will be conducted at least 500 feet from all nonparticipating persons (persons other than the PIC or VO), vessels, vehicles, and structures

unless:

### 5 a. Barriers or structures are present that sufficiently protect nonparticipating persons from debris in the event of an accident. The operator will ensure that nonparticipating persons remain under such protection. If a situation arises where nonparticipating persons leave such protection and are within 500 feet of the UA, flight operations must cease immediately and/or; b. the aircraft is operated near vessels, vehicles or structures where the land owner/controller has granted permission and the PIC has made a safety assessment of the risk of operating closer to those objects and; c. operations near the PIC or VO will not present an undue hazard to the PIC or VO, per § 91.119(a).

Proposed Operating Parameters

AV proposes to conduct all flights within VLOS of a pilot and observer and all flights will be limited to a maximum altitude of 400 feet AGL. To further enhance safety and a controlled environment, AV only allows authorized personnel in the operational area. On the ground, the launch site is blocked off using cones, and there is a designated person to intercept anyone not authorized. This procedure not only protects non-authorized individuals, it also minimizes distractions fo r the flight crew. In addition, the airspace is covered by a NOTAM, which is filed before flight. Furthermore, the observer, who is properly trained for the operations, monitors local air traffic frequencies in order to communicate with any air traffic nearby, if required by the COA.

Operator Requirements

AV respectfully proposes that operator requirements should take into account the characteristics of the particular UAS. The Shrike is an inherently stable, lightweight aircraft that weighs 7.0 pounds (at its maximum weight) and will be operated in controlled areas. While AV will be using a PIC holding an FAA private pilot certificate, the safety concerns addressed by requiring a private pilot certificate are not present with the operation of the Shrike. Although the Shrike can be configured to give the pilot full control to the aircraft and payload during flight, the Shrike has an advanced autopilot that flies the aircraft, managing altitude and flight path within the intended flight envelope at all times when that flight mode is engaged. The autopilot limits maneuvering to simple airspeed, altitude, and turn rate changes. These limits are hard coded into the autopilot and define the aircraft’s normal flight operating envelope. The autopilot manages pitch, bank, and throttle to maintain target airspeed, target turn rate, and target altitude. For in flight modes that do not use GPS, the operator manually guides the flight path by controlling target airspeed, target altitude, and target turn rate directly. In flight modes that use GPS, the autopilot controls target turn rate to fly to waypoints. The system does not allow commands that are outside of the normal operating envelope, and the operator never affects control surface movements directly. Equally significant is the fact that Shrike operates within a tight visual line of sight (500 meters) and is therefore easily maneuvered within a visual operating area. See Shrike Operations Manual, Exhibit D.

### 6 Specific Exemption Requests and Equivalent Level of Safety Showings

14 C.F.R. §§ 61.113(a) and (b), 61.133(a)- Private Pilot Privileges and

Limitations: Pilot in Command ; Commercial Pilot Privileges and

Limitations

Regulations provide as follows:

Subsections (a) and (b) of § 61.113 prohibit private pilots from operating aircraft in commercial operations, and Section 61.133(a) requires an individual operating an aircraft for compensation or hire to hold a commercial pilot certificate. The FAA has the statutory authority to waive the pilot requirements for commercial operations. 49 U.S.C. § 44701(f).Basis for exemption is as follows:AV requests an exemption from 14 C.F.R. §§ 61.113(a) and (b) and 14 C.F.R. § 61.133(a) so that the Shrike may be operated by individuals who (a) have a private pilot certificate, and (b) have completed AV's US military-approved training program for operation of the Shrike.

Based upon the design features of the Shrike, its autopilot system, and safety factors, the FAA should permit operation of UASs by operators with a private pilot certificate

when the conditions described above have been satisfied. The above-described conditions are in line with those set forth in Volume 16, Chapter 4, Section 1 of FAA Order 8900.1.AV proposes to conduct operations in accordance with these restrictions. Given these conditions and restrictions, an equivalent level of safety will be provided by allowing operation of the Shrike with a private pilot certificate. The risks associated with the operation of the Shrike (given its size, speed, operational capabilities, and lack of combustible fuel) are so much less than the level of risk associated with manned operations, both private and commercial, as contemplated by Part 61, that allowing operations of the Shrike, as set forth above, meets or exceeds the present level of safety provided under 14 C.F.R. §§ 61.113(a) & (b) and 61.133(a).

14 C.F.R. 91.7 (a) Civil Aircraft Airworthiness

This regulation requires that no person may operate a civil aircraft unless it is in airworthy condition. Should the exemption be granted allowing commercial operation of the Shrike without an airworthiness certificate, no standard will exist for airworthiness of the Shrike. Given the size of the aircraft, the speed it will operate at, the procedures for operating and maintaining the aircraft as set forth in the manuals, an equivalent level of safety will be provided.

14 C.F.R. §91.121: Altimeter Settings

This regulation requires:

Each person operating an aircraft to maintain cruising altitude by reference to an altimeter that is set “...to the elevation of the departure airport or an appropriate altimeter setting available before departure.”

Basis for exemption is as follows:

As the UAS may not have a barometric altimeter, but instead GPS altitude control, an

### 7 exemption may be needed. An equivalent level of safety will be achieved by the operator as the UAS uses AGL height from its initialization (launch) point, cross-referenced with MSL altitude of the launch point.

14 C.F.R. § 91.151(b): Fuel Requirements for Flight in VFR Conditions

Section 91.151(b) prohibits an individual from beginning "a flight in a rotorcraft 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 Shrike’s batteries provide up to 45 minutes of powered flight. Without an exemption from 14 C.F.R. § 91.151 (b), the Shrike’s flights would be extremely limited in length. Given the nature of Shrike’s controlled operations, a limitation on flight time would severely comprise its intended mission.

AV believes that an exemption from 14 C.F.R. § 91.151(b) is safe and consistent with the scope of a prior exemption. See Exemption 10673 (allowing Lockheed Martin Corporation to operate without compliance to 91.151(a)). Operating the Shrike, a small UAS, without 20 minutes of reserve fuel does not engender the type of risks that Section 91.151(b) was meant to prevent. The fact that the Shrike carries neither pilot, passenger, nor cargo, also enhances its safety. Given its size, weight and construction material, the risks are less than contemplated by the current regulation.

Similar exemptions have been granted to others, including Exemptions 2689F, 5745, 10673 , 11062-11067, 11080, 11109, 11136, and 11138.

14 C.F.R. §§ 91.405(a); 91.407(a)(1); 91.409(a)(2); 91.417(a)(b): Maintenance Inspections and Records

Section 91.405(a) requires that an aircraft operator or owner "[s]hall have that aircraft inspected as prescribed in subpart E of this part and shall between required inspections, except as provided in paragraph (c) of this section, have discrepancies repaired as prescribed in part 43 of this chapter." Section 91.407 similarly makes reference to requirements in Part 43; Section 91.409(a)(2) requires an annual inspection for the issuance of an air worthiness certificate. Section 91.417(a) requires that an owner or operator keep records showing certain maintenance work that has been accomplished by certificated mechanics, under Part 43, or licensed pilots and records of approval of

the aircraft for return to service.

Maintenance of the Shrike will be accomplished by the owner/operator pursuant to the manuals provided by AV. An equivalent level of safety will be achieved because theShrike is small in size, will carry no external payload, will operate only in restricted predetermined areas, and is not a complex mechanical device. The Shrike operator will ensure that it is in working order prior to initiating flight, perform required maintenance, and keep a log of any maintenance that is performed. Moreover, the operator is the person most familiar with the aircraft and is best suited to maintain the aircraft in an airworthy condition and to ensure an equivalent level of safety. Maintenance is very easy as the operator can simply swap out consumable parts (much like plug and play) and is trained in these procedures – a licensed airplane and power mechanic is not necessary.

### 9 Table of Contents Page(s)

Purpose

About AeroVironment

Exhibit A: Shrike Specifications & Description (Confidential) 13-17

Exhibit B: Safety Components & Procedures (Confidential) 18-21

Exhibit C: Current Shrike COA – University of Alaska Fairbanks 22-42

Exhibit D: AV Shrike Operations Manual (Confidential) 43-409

Exhibit E: North Slope Standard Operating Procedure (Confidential) 410-486

Exhibit F: National Airspace Standard Operating Procedure (Confidential) 487-524

### 10 Purpose

AV intends to conduct commercial operations using its Shrike aircraft for inspection of fixed infrastructure in controlled environments during daytime and nighttime hours. The purpose is to provide imagery, information and analytical data to further aerial surveillance in support of the operational aspects of petroleum and mining industry infrastructure and geography. In conjunction with commercial partners, AV will perform inspection operations with qualified personnel who hold private pilot certificates.

These controlled locations are the ideal landscape for vertical aircraft technology, providing safe and risk-mitigated surveillance. The Shrike aircraft can hover and maneuver into locations that human personnel cannot reach or inspect without serious safety considerations. For example, Shrike can conduct flare stack inspections during times that would otherwise put human personnel in harm’s way. This technology significantly reduces risk by eliminating the need for inspection personnel on elevated structures currently using rope access, scaffolding, bucket trucks, and ladders. Use of the Shrike aircraft also eliminates the need for aircraft carrying flammable fuel.

In addition to enhancing safety elements, the use of Shrike aircraft technology to assist in monitoring on a regular basis, particularly when equipment indicates a malfunction, contributes to better supervision, cost efficiencies and improved maintenance. Real-time information and imagery allows for more informed assessments and faster, corrective decisions. Data captured by Shrike cameras is far more accurate than the human eye and provides a consistent, steady stream of information for analysis. For nighttime operations, Shrike can be fitted with an infrared camera and high-intensity red and green strobes to enhance observability.

With regard to nighttime operations, AV contends that such operations may be conducted at least as safely as during the day using a similar concept of operations. Data supporting this can be found in a recent NASA-funded flight test series, which concluded that “statistical analyses of mean visual acquisition distances, overall aircraft visibility, and other parameters revealed no degradation in safety when operating at night. Moreover, when statistically significant differences were identified, the data favored night operations over daytime...Across three weeks of experimental testing, no systematic degradation of safety was observed when operating the...sUAS at night, even with the addition of light pollution.” ( Reference: Final Report of the Evaluation of the Safety of Small Unmanned Aircraft System (sUAS) Operations in the National Airspace System (NAS) at Night, Year 2,” Igor Shrike Unmanned Aircraft

### 11 Dolgov, PhD., Department of Psychology, New Mexico State University; Dallas Brooks, Physical Sciences Lab, New Mexico State University; Bryan Hudson, AeroVironment, December 24, 2014)

The use of Shrike’s technology for aerial monitoring is a valuable solution for critical national infrastructure and a resolution in the public interest. This technology demonstrates a meaningful contribution to the important operations of the proposed infrastructure and the purpose they serve. It also provides for enhanced emergency response capabilities associated with the petro leum and mining industries, including:

 assistance with oil spills

 detection of unwanted emissions/pollutants

 identification of rust and corrosion

 integrity of power lines

 abnormalities in tanks and storage facilities

 discovery of structural defects

 road and transportation irregularities

 assistance with disaster relief

The capability of Shrike to consistently hover, monitor and capture real-time video and imagery in these locations is critical to sustaining industry operations. Improved efficiency allows the opportunity for higher quality, more frequent inspections, and improvement of overall safety.

### 12 About AeroVironment, Inc.

AeroVironment (AV) is an innovations company that designs, develops, produces and supports an advanced portfolio of unmanned aircraft systems (UAS). The company was founded in 1971 by Dr. Paul B. MacCready, an internationally recognized expert in aerodynamics and aviation.

UASs are revolutionary aircraft and AV has been at the forefront of their design, development and advancement. The company’s ongoing commitment to breakthrough innovation, sound performance, and enduring integrity led to numerous accomplishments in this field. Today, our UAS solutions make up more than 85 percent of the U.S. Department of Defense’s unmanned aircraft fleet. AV is also the first to deliver FAA-approved commercial UAS operations over American soil – a catalyst for global expansion.

AV offers a broad range of UASs for military and commercial application. Each aircraft is designed for a unique mission or task, but all provide solutions through situational awareness via real-time, airborne reconnai ssance, surveillance and communication.

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