### t1"' 

# TERRAFUGift:

August 3, 2015 Ms. Brittany Newton Program Analyst Airmen and Airspace Rules Division via U.S. Department ofTransportation Docket ManagementSystem West Building Ground Floor, Room W12-140 1200 NewJersey Avenue, SE Washington, DC 20590 Re: Terrafugia Exemption Request, Docket No. FAA-2015-1382 Dear Ms. Newton: -.. ;

**~** .



### Terraf~g'i~ **l~ncf:"** J

## C; 23 Rainin Road Woburn, MA01801 T: +1-781-491-0812 F: +1-781-491-0282 www.terrafugia.com

The FAA recently requested that additional information be provided in regards toTerrafugia's exemption request pursuantto Section 333 ofthe FAA Reform Act and Part 11 ofthe Federal Aviation Regulations. Please considerthe following as a revision ofthe original petition filed April 21, 2015. Terrafugia is developingthe TF-XTM, which is ourvision forthe future ofpersonal transportation. Afour-seat, plug-in hybrid electric flying car with fly-by-wire vertical takeoffand landing (VTOL) capabilities, TF-XTM is designed to bring personal aviation to the world. The design will make use ofthe high power density and reliability of modern electric motors in combination with parallel power and control system architecturesto achieve a higher level ofsafety than modern automobiles. TF-XTM will provide true door-to-doortransportation combined with the freedom ofvertical takeoffand landing- creating a new dimension of personal mobility. We are constructingthree small, working scale models ofthe vehicle, each ofwhich weighs less than 10 kg. We would like to operate these models outdoors, under controlled conditions andTERRAFUGIA: Page 2 of6

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, pursuant to Section 333 ofthe FAA Modernization and Reform Act of2012 (the "Reform Act") and CFR Part 11, Terrafugia, an operator ofSmall Unmanned Aircraft Systems (sUAS) for R&D, hereby applies for an exemption from the Federal Aviation Regulations (FAR) to allowthese operations ofour UAS for R&D purposes. Approval ofthis exemption is consistent with the Notice of Proposed Rulemaking regarding 14 CFR Part 107, which aims to "allow small unmanned aircraft systems (small UAS) to operate for non-hobbyor non-recreational purposes." While the Rulemaking process is ongoing, allowing this exemption provides a means ofsatisfyingthe mandate ofSection 333 ofthe Reform Act to "accelerate the integration ofcivil unmanned aircraft systems intothe national airspace system." Attached tothis Exemption Request is the latest version ofthe Terrafugia Flight Operations and Procedures Manual forthe 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 thatthis document be deemed confidential information and not available for public disclosure. Ifany additional information is needed, please contact me at {781) 491-0812 or richard@terrafugia.com. Thank you foryour consideration. Regards,



# ~(2~

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

www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282

# = Page 3 of6 TERRAFUGI.6: 

## Information supporting this Petition as Specified in 14CFR §11.81 {a) Name, mailing address and othercontact information Terrafugia, Inc. Attn: Richard Gersh Ph: 781-491-0812 Fax: 781-491-0282 Email: richard@terrafugia.com Address: 23 Rainin Road Woburn, MA 01801 {b) The specific section or sections of 14CFR from which Terrafugia seeks an exemption 14 CFR 21 Subpart H- Airworthiness Certificate 14 CFR 45.23(b)- Marking ofthe 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 theAircraft 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 409(a)(2) -Inspections 14 CFR 417(a) and (b)- Maintenance Records Appendix A discusses each section in detail, indicatingthe rationale forthe request, the safety considerations, and thatthey are in the public interest. {c) The extent of reliefTerrafugia 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 necessaryto engage in private, R&D operations ofsUAS on our own property and at appropriate testing locations1

.

1 Some potential testing locations are listed in Section 4 oftheTerrafugia Flight Operations and Procedures Manual, which is attached to this document. www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282TERRAFUGIA: Page 4 of6

IfTerrafugia is not granted this exemption, we will be forced to conductTF-XTM technology development in other countries. This would represent an immediate loss of investment capital in the U.S. economy, a potentiallysevere program delay, and highly detrimental effects tothe longterm future of personal aviation in the United States relative to other countries. The countries that allowthistype oftechnology developmentwill surpass those that do not as measured by both the level ofsafety ofpersonal aviation and the economic output associated with personal aviation. (d) The reasons why grantingTerrafugia's request would be in the public interest; that is, how itwould benefitthe public as a whole The development and flight testing ofTF-XTM scale models is in the direct interest ofthe public as it is a critical early step towards realizing the potential widespread benefits ofthe full-scale TF-XTM vehicle. By combiningvertical takeoffand landing with semi-autonomous flight and road-going capability, the TF-XTM will allowfaster, safer, and more widely accessible door-to-doortravel than what can be achieved by any other means of transportation fortrips up to 500 miles. Trips shorterthan 500 miles represent the majority oftripstaken in the United States, includingthe vast majority ofcommutertravel. By reducingthe average travel time, the TF-XTM will allowthe publicto spend less time stuck in traffic and more time doing economically productive activities, which will result in increased standards of living and growth in the GDP ofthe United States. Accordingtothe 2012 Urban Mobility Report2
, in 2011, itwas estimated thatthe total cost oftraffic congestion in the U.S. was $121 billion, with $94 billion ofthat due to individual commuters' losttime and fuel. It is expected that by 2020, the national congestion cost will be $199 billion with a delay of8.4 billion hours. Traditional means ofaddressing congestion, including improving highway capacity and increasing the use ofpublic transportation, are not sufficient, potentially addressing only 23% ofthe congestion cost. The TF-XTM vehicle has the potential to dramatically reduce traffic congestion and its associated costs by making aviation a safe and accessible mode oftravel. It is expected to achieve a much higher level ofsafetythan can be found in today's personal aircraft by both loweringthe risk ofpilot errorthrough automation and incorporating automotive crashworthiness features. By iteratingwith sub-scale models oftheTF-XTM, the use ofwhich is being requested herein, the development program can begin to make significant early strides towards the realization ofthe public benefit associated with the full-scale production TF-XTM.

2Texas A&M Transportation Institute, D. Schrank, B. Eisele, & . Lomax. http://mobility.tamu.edu www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282

# -- §!! Page 5 of6 TERRAFUGIA: (e) The reasons whygrantingthe exemption would not adversely affect safety, or howthe exemptionwould provide a level ofsafety at least equal tothat provided bythe rulefrom 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 ourtrained R&D engineers as operators. We are in the process ofidentifying and holding discussions with appropriate testing locations. Parameters would be set such that an equivalent level ofsafetyto currently authorized operations using manned aircraft and conducted under conditions as may be modified bythe 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 sUAS will weigh no more than 10 kg (22 lb) • Visual line-of-sight (VLOS) operations only • Daylight-only operations in designated areas defined in TFOPM • Maximum speed 120 mph • Maximum altitude 400 feet above ground level (AGL) • Minimum weathervisibility of3 statute miles from control station • Ifappropriate permission from air traffic control and/or airport management is not available, operations will be conducted morethan: o 5 nautical miles from a controlled airport o 3 nautical miles from an airport with a published instrumentflight procedure o 2 nautical miles from any airport o 2 nautical miles from any heliportwith an instrumentflight procedure • Preflight inspection required • Maximum flight time 20 minutes • Operatorwill conduct a pre-flight safety briefingto include all flight test team members • All members ofthe testteam will be able to communicate byvoice at all times • Ifthe sUAS loses communications, itwill have the capability to land immediately.

www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282TERRAFUGI.A: Page 6 of6 (f) A summarythe FAA can publish in the FEDERAL REGISTER, stating: (1) the rule from which Terrafugia seeks the exemption; and (2) a briefdescription ofthe nature ofthe exemption Terrafugia seeks (1) Sections ofCFR from which Terrafugia seeks the exemption: 14 CFR §§ 21, 

### 45, 61, 91, 

### 407, 409, and 417. (2) 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 and at appropriate testing locations. These sUAS are scale models ofTerrafugia'sTF-XTM semi-autonomous flying and drivingvertical takeoffand landing hybrid vehicle. The models will be 10kgor less in weight and be operated by appropriatelytrained Terrafugia personnel undervisual-line-of-sight, in daylight conditions only, below 400 feet and with a maximum speed of 120 mph. These sUAS operations are critical tothe development program ofthe TF-XTM and thus stand to benefitthe public by addressingthe anticipated traffic congestion costs in the U.S. (projected to be $199 billion in 2020) with asafe, convenient, and accessible form ofalternative personal transportation. (g) Any additional information,views or arguments availableto supportTerrafugia's request Please see the introduction tothis exemption request. Also, a computer rendering ofthe functionality and operation ofthe full-scale TF-XTM can be found online: http:/ /www.terrafugia.com/tf-x. (h) IfTerrafugia wantsto exercise the privileges ofour exemption outsidethe United States, the reason whyTerrafugia needs to doso. The R&D operations described in this exemption request will be conducted entirelywithin the United States.

www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282TERRAFUGIA Page A2 ofAS 

## AppendixA: Exemption Request and Equivalent Level ofSafety under Applicable Rules Terrafugia requests an exemption from the following regulations: 14 CFR §21 Subpart H-Airworthiness Certificate This regulation requires all civil aircraftto have a Certificate ofAirworthiness. Given the small size and operating limitations ofthe TF-XTM model(sL an appropriate level ofsafety 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 ofthe Reform Act, which authorize the FAA to exempt aircraft from the requirement ofan airworthiness certificate upon appropriate consideration of its operational capabilities. 14 CFR §45.23{b)- Marking oftheAircraft Given the preceding request to waive the airworthiness certificate requirement, this regulation regarding the display ofthe word "Experimental" on the aircraft in letters not less than 2 inches nor more than 6 inches on the aircraft may be inapplicable. However, all such markings, includingthe aircraft's "N" numberwill be limited, given the size ofthe aircraft. Terrafugia will, where appropriate and possible, show identification markings on the TF-XTM RC model. 14CFR §61.113(a) and (b); §61.133(a)- Private Pilot Privileges and Limitations; Commercial Pilot Privileges and Limitations Section 61.113(a) and (b) limits private pilotsto non-commercial operations. Section 61.133(a) mandatesthat an individual with a commercial pilot's certificate be in command ofan aircraft for compensation or hire. The risks associated with the flight operations ofthe Terrafugia sUAS are minimal. There are no crew or passengers on board the aircraft, and it is operated within sight ofthe operator at a maximum altitude of no morethan 400 feet. The number ofobservers 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 ofthe TF-XTM RC model to act as Operator ofthe Terrafugia sUAS. 14CFR §91.7(a)- Civil AircraftAirworthiness This regulation requires that "no person may operate acivil aircraft unless it is in airworthy condition." The TF-XTM RC model will be operated in compliance with the airworthiness guidelines established bythe Terrafugia Flight Operations and Procedures Manual, providing an equivalent level ofsafetyfor an aircraft under an airworthiness certificate. (This exemption would be required assuming that an airworthiness certificate will not be required fortheTF-XTM RC model.)

www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282TERRAFUGIA Page A3 ofAS

14CFR §91.9{b)(2)- Civil Aircraft Flight Manual in theAircraft The regulation states that: "No person may operate a U.S. registered aircraft--- (2) For which an Airplane or Rotorcraft Flight Manual is not required by 521.5 ofthis chapter, unless available in the aircraft a current approved airplane or Rotorcraft Flight Manual, approved manual material, markings, and placards, or any combination thereof." Given the size oftheTerrafugia sUAS, there is no capacityto carry such a manual on board. Additionally, with no pilot on board, the rationale for carrying such a manual is negated. This does not affectthe level ofsafety. The flight manual will be kept in close proximitytothe 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) duringtakeoff, landing and en route. Given thatthe TF-XTM RC model is remotely operated, there are no crewmembers on board; thus, we request an exemption from this regulation. The equivalent level ofsafety will be achieved through appropriate staffing of model operations with trained personnel, as outlined in theTerrafugia Flight Operations and Procedures Manual. 14 CFR §91.109- Flight Instruction This regulation provides that "no person mayoperate a civil aircraft (except a manned free balloon) that is being used forflight instruction unless that aircraft has fullyfunctioning dual controls." The TF-XTM RC model is a remotely controlled aircraft and, by definition, does not have fullyfunctional dual controls. A manufacturer-approved training protocol is outlined in the Terrafugia Flight Operations and Procedures Manual, providing an equivalent level ofsafety. 14 CFR §91.119- Minimum Safe Altitudes This regulation establishes safe altitudes forthe operation ofcivil aircraft. It mandatesthat "except when necessary fortakeoffor landing, no person may operate an aircraft belowthe following altitudes:

... (c) Over otherthan congested areas. An altitude of500feet above the surface, except overwateror sparsely populated areas. In those cases, the aircraft may not be operated closer than 500 feetto 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 ofcontact with manned aircraft is significantly reduced at this altitude, and the lack offlammable fuel also decreases the risks associated with these flights.

www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282

# -- ;;;;;;e, TERRAFUGIA: Page A4 ofAS

14 CFR §91.121- Altimeter Settings This regulation requires that "each person operating an aircraft shall maintain the cruising altitude orflight level ofthat aircraft, as the case may be by reference to an altimeterthat is set to (iii) the elevation ofthe departure airport or an appropriate altimeter setting available before departure." An equivalent level ofsafety will be maintained, as outlined in the TFOPM, by confirmingthe altitude ofthe departure area, maintainingvisual contact with the sUAS, at an altitude of400 feet above ground level (AGL) or below. 14CFR §91.151{a) and (b)- Fuel Requirements for VFR Flights This regulation prohibits a person from beginning aflight in an airplane underVFR conditions unless (considering wind and forecast weather conditions) there is enough fuel to flyto the first point ofintended landing, and assuming normal cruising speed--- (1) During the day, to fly afterthatfor at least 30 minutes; Similarly, no person may begin aflight in a rotorcraft underVFR conditions unless (considering wind and forecast weather conditions) there is enough fuel to flytothe first point of intended landing and, assuming normal cruising speed, to fly afterthat for at least 20 minutes. The Terrafugia TF-XTM RC model uses lithium-polymer batteries as a power source, which provide approximately 10 minutes ofpowered flight. Without relieffrom the subject regulation, flighttesting ofthevehicle would not be possible. Terrafugia believes that an equivalent level ofsafety can be achieved by flying the aircraft in close proximityto the landing zone; a decrease in powerwill result in immediate landing. 14CFR §91.203{a) and {b)- Carrying Civil Aircraft Certification and Registration This regulation provides that "(a) No 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) ofthis section

...is displayed atthe cabin or cockpit entrance so that it is legible to passengers or crew." An equivalent level ofsafety will be provided by maintaining airworthiness and registration documentation in close proximityto the sUAS operator atthe ground flight control point; there is no abilityto displaythese 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 inspections, annual inspections, maintenance, and related recordkeeping for aircraft with an airworthiness certificate. Assuming thatthe TF

## xrM RC model will not be required to have an airworthiness certificate, these sections will not apply. However, maintenance will be performed by appropriatelytrained Terrafugia personnel, www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282TERRAFUGIA:' Page AS ofAS

in conjunction with the aircraft manufacturer's guidelines as outlined in the Terrafugia Flight Operations and Procedures Manual, providing an equivalent level ofsafety, supportingthe grant ofthe exemption requested.

www.terrafugia.com 23 Rainin Road Woburn, MA 01801 T: +1-781-491-0812 F: +1-781-491-0282