August 25

, 2015

Exemption No. 12588 Regulatory Docket No. FAA

– 20 15

– 0708

Mr. Dane B. Jaques

Counsel for Pacific Gas and Electric Company McKenna Long & Aldridge LLP 1676 International Drive, Penthouse
McLean, VA 22102

Dear Mr. Jaques :

This letter is to inform you that we have granted your request for exemption. It transmits our decision, explains its basis, and gives you the conditions and limitations of the exemption, including the date it ends.

By letter s dated March 17, 2014 and June 1, 2015 , you petitioned the Federal Aviation Administration (FAA ) on behalf of Pacific Gas and Electric Company ( hereinafter petitioner

or operator ) for an exemption

. The exemption would all ow the petitioner to operate an

unmanned ai rcraft system (UAS) to conduct aerial surveys, inspections

, and patrols of Pacific

Gas and Electric Company facilities

.

See Appendix A for the petition submitted to the FAA des cribing the proposed operations and

the regulations that the petitioner seeks an exemption

.

The FAA has determined that good cause exists for not publishing a summary of the petition in the Federal Register because the requested exemption would not set a precedent, and any delay in acting on this petition would be detrimental to the petitioner

.

Airworthiness Certification

The UAS proposed by the petitioner is are the Aeryon SkyRanger, Aeryon Scott, Altavian

Nova F6500 , PJ UAS CarbonCore Cortex, and InspecTools X

- 8

.2

The petitioner requested relief from 14 CFR part 21, C ertification procedures for products and parts, Subpart H

— Airworthiness Certificates

. In accordance with the statutory criteria provided in Section 333 of P ublic Law 112

− 95 in reference to 49 U

. S

. C

. § 44704, and in consideration of the size, weight, speed, and limited operating area associated with the

aircraft and its operation, the Secre tary of Transportation has determined that this aircraft

meets the conditions of Section 333. Therefore, the FAA finds that the requested relief from

14 CFR part 21

, C ertification procedures for products and parts, Subpart H

— Airworthiness Certificates

, and any associated noise certification and testing requirements of part 36, is

not necessary.

The Basis for Our Decision

You have requested to use a UAS for aerial data collection 1

. The FAA has issued grants of exemption in circumstances similar in all material respects to those presented in your petition. In Grants of Exemption No s

. 11062 to Astraeus Aerial ( see Docket No. FAA−2014−0352), 11109 to Clayco, Inc. ( see Docket No. FAA

− 2014

− 0507), 11112 to VDOS Global, LLC ( see Docket No. FAA−2014−0382), and 11213 to Aeryon Lab s , Inc. ( see Docket No. FAA−2014−0642), the FAA found that the enhanced safety achieved using an unmanned aircraft (UA) with the specifications described by the petitioner and carrying no passengers or crew, rather t han a manned aircraft of significantly greater proportions, carrying crew in addition to flammable fuel, gives the FAA good cause to find that the UAS operation enabled by this exemption is in the public interest.

Having reviewed your reasons for requesti ng an exemption, I find that

—

 They are similar in all material respects to relief previously requested in Grant of Exemption Nos. 11062, 11109, 11112, and 11213 ;

 The reasons stated by the FAA for granting Exemption Nos. 11062, 11109, 11112, and

11213 also apply to the situation you present; and

 A grant of exemption is in the public interest.

Our Decision

In consideration of the foregoing, I find that a grant of exemption is in the public interest. Therefore, pursuant to the authority contained in 49 U.S.C. 106(f), 40113, and 44701, delegated to me by the Administrator, Pacific Gas and Electric Company is granted an exemption from 14 CFR §§ 61.23(a) and ( c ), 61.101(e)(4 ) and (5), 61.113(a), 61.315(a)

,

1 Aerial data collection includes any remote sensing and measuring by an instrument(s) aboard the UA. Examples include imagery (photography, video, infrared, etc.), electronic measurement (precision surveying, RF analysis, etc.), chemical measurement (part iculate measurement, etc.), or any other gathering of data by

instruments aboard the UA.3

91.7(a), 91.119(c), 91.121, 91.151(a)(1), 91.405(a), 91.407(a)(1), 91.409(a)(1) and (2), and 91.417(a) and (b), to the extent necessary to allow the petitioner to operate a UAS to perform

aerial data collection

. This exemption is subject to the conditions and limitations listed

below.

Condition s and Limitations

In this grant of exemption, Pacific Gas and Electric Company is hereafter referred to as

the operator.

Failure to comply with any of the conditions and limitations of this grant of exemption will be grounds for the immediate suspension or rescission of this exemption.

1. Operations authorized by this grant of exemption are limited to the Aeryon SkyRanger, Aeryon Scott, Altavian Nova F6500, PJ UAS CarbonCore Cortex, and InspecTools X

- 8 when weighing less than 55 pounds including payload. P roposed operations of any other aircraft will require a new petition or a petition to amend this exemption

.

2. Operations for the purpose of closed

- set motion picture and television filming are

not permitted.

3. The UA may not be operated at a speed exceeding 87 knots (100 miles per hour). The exemption holder may use either groundspeed or calibrated airspeed to determine compliance with the 87 knot speed restriction. In no case will the UA be operated at airspeeds greater than the maximum UA operating airsp eed recommended by the

aircraft manufacturer.

4. The UA must be operated at an altitude of no more than 400 feet above ground level (AGL). Altitude must be reported in feet AGL.

5. The UA must be operated within visual line of sight (VLOS) of the PIC at all times. This requires the PIC to be able to use human vision unaided by any device other than corrective lenses, as specified on the PIC’s FAA

- issued airman medical certificate or

U.S. driver’s license.

6. All operations must utilize a visual observer (VO). The UA must be operated within the visual line of sight (VLOS) of the PIC and VO at all times. The VO may be used to satisfy the VLOS requirement as long as the PIC always maint ains VLOS capability. The VO and PIC must be able to communicate verbally at all times ;

e lectronic messaging or texting is not permitted during flight operations. The PIC must be designated before the flight and cannot transfer his or her designation fo r the duration of the flight. The PIC must ensure that the VO can perform the duties required of the VO.4

7. This exemption and all documents needed to operate the UAS and conduct its operations in accordance with the conditions and limitations stated in thi s grant of exemption, are hereinafter referred to as the operating documents. The operating

documents must be accessible during UAS operations and made available to the Administrator upon request. If a discrepancy exists between the conditions and

limita tions in this exemption and the procedures outlined in the operating documents, the conditions and limitations herein take precedence and must be followed. Otherwise, the operator must follow the procedures as outlined in its operating documents. The ope rator may update or revise its operating documents. It is the operator’s responsibility to track such revisions and present updated and revised documents to the Administrator or any law enforcement official upon request. The operator must also present up dated and revised documents if it petitions for extension or amendment to this grant of exemption. If the operator determines that any update or revision would affect the basis upon which the FAA granted this exemption, then the operator must petition for an amendment to its grant of exemption. The FA A’s UAS Integration Office (AFS− 80) may be contacted if questions arise regarding updates or revisions to the operating documents.

8. Any UAS that has undergone maintenance or alterations that affect the UAS op eration or flight characteristics, e.g.

, replacement of a flight critical component, must undergo a functional test flight prior to conducting further operations under this exemption. Functional test flights may only be conducted by a PIC with a VO and mu st remain at

least 500 feet from other people. The functional test flight must be conducted in such a manner so as to not pose an undue hazard to persons and property.

9. The operator is responsible for maintaining and inspecting the UAS to ensure that it i s in a condition for safe operation.

10. Prior to each flight, the PIC must conduct a pre

- flight inspection and determine the UAS is in a condition for safe flight. The pre

- flight inspection must account for all potential discrepancies, e.g.

, inoperable comp onents, items, or equipment. If the inspection reveals a condition that affects the safe operation of the UAS, the aircraft is prohibited from operating until the necessary maintenance has been performed and the

UAS is found to be in a condition for safe flight.

11. The operator must follow the UAS manufacturer’s maintenance, overhaul, replacement, inspection, and life limit requirements for the aircraft and

aircraft components.

12. Each UAS operated under this exemption must comply with all manufacturer safety bulletins.5

13. Under this grant of exemption, a PIC must hold either an airline transport, commercial, private, recreational, or sport pilot certificate. The PIC must also hold a

current FAA airman medical certificate or a valid U.S. driver’s license issued by a state, the District of Col u mbia, Puerto Rico, a territory, a possession, or the Federal

G overnment. The PIC must also meet the flight revi ew requirements specified in

14 CFR § 61.56 in an aircraft in which the PIC is rated on his or her pilot certificate.

14. The operator may not permit any PIC to operate unless the PIC demonstrates the ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption, including evasive and emergency maneuvers and

main taining appropriate distances from persons, vessels, vehicles and structures. PIC qualification flight hours and currency must be logged in a manner consistent with

14 CFR § 61.51(b). Flights for the purposes of training the operator’s PICs and VOs (trai ni ng, proficiency, and experience

- building) and determining the PIC’s ability to safely operate the UAS in a manner consistent with how the UAS will be operated under this exemption are permitted under the terms of this exemption. However, training operat ions may only be conducted during dedicated training sessions. During

traini ng, proficiency, and experience

- building flights, all persons not essential for flight operations are considered nonparticipants, and the PIC must operate the UA with appropriate distance from nonparticipants in accordance with 14 CFR § 91.119.

15. UAS operations may not be conducted during night, as defined in 14 CFR § 1.1. All operations must be conducted under visual meteorological conditions (VMC). Flights under special visual f

light rules (SVFR) are not authorized.

16. The UA may not operate within 5 nautical miles of an airport reference point (ARP) as denoted in the current FAA Airport/Facility Directory (AFD) or for airports not denoted with an ARP, the center of the airport sym bo l as denoted on the current

FAA

- published aeronautical chart, unless a letter of agreement with that airport’s management is obtained or otherwise permitted by a COA issued to the exemption

holder. The letter of agreement with the airport management mus t be made available to the Administrator or any law enforcement official upon request.

17. The UA may not be operated less than 500 feet below or less than 2,000 feet horizontally from a cloud or when visibility is less than 3 statute miles from the PIC.

18. If the UAS loses communications or loses its GPS sign al, the UA must return to a

pre

- determined location within the pr ivate or controlled

- access property.

19. The PIC must abort the flight in the event of unpredicted obstacles or emergencies.

20. The PIC is prohibi ted from beginning a flight unless (considering wind and forecast weather conditions) there is enough available power for the UA to conduct the6

intended operation and to operate after that for at least 5 minutes or with the reserve power recommended by the manufacturer if greater.

21. Air Traffic Organization (ATO) Certificate of Waiver or Authorization (COA). All operations shall be cond ucted in accordance with an ATO

- issued COA. The exemption holder may apply for a new or amended COA if it intends to condu ct operations that cannot be conducted under the terms of the attached COA

.

22. All aircraft operated in accordance with this exemption must be identified by serial number, registered in accordance with 14 CFR part 47, and have identification (N− Number) markings in accordance with 14 CFR part 45, Subpart C. Markings must be as large as practicable.

23. Documents used by the operator to ensure the safe operation and flight of the UAS and any documents required under 14 CFR §§ 91.9 and 91.203 must be available to the PIC at the Ground Control Station of the UAS any time the aircraft is operating. These documents must be made available to the Administrator or any law enforcement official upon request.

24. The UA must remain clear a nd give way to all manned aviation operations and

activities at all times.

25. The UAS may not be operated by the PIC from any moving device or vehicle.

26. All Flight operations must be conducted at least 500 feet from all nonparticipating persons, vessels, v ehicles, and structures unless:

a. Barriers or structures are present that sufficiently protect nonparticipating persons

from the UA and/or debris in the event of an accident. The operator must ensure that nonparticipating persons remain under such protectio n. If a situation arises where nonparticipating persons leave such protection and are within 500 feet of the UA, flight operations must cease immediately in a manner ensuring the safety of nonparticipating persons ; and

b. The owner/controller of any vessels, vehicles or structures has granted permission for operating closer to those objects and the PIC has made a safety assessment of the risk of operating closer to those objects and determined that it does not present an undue hazard.

The PIC, VO, operator t rainees or essential persons are not considered nonparticipating persons under this exemption.

27. All operations shall be conducted over private or control led

- access property with permission from the property owner/controller or authorized representative.

P ermission from property owner/controller or authorized representative will be obtained for each flight to be conducted.7

28. Any incident, accident, or flight operation that transgresses the lateral or vertical boundaries of the operational area as defined by the applicable COA must be reported

to the FA A's UAS Integration Office (AFS− 80) within 24 hours. Accidents must be reported to the National Transportation Safety Board (NTSB) per instructions

contained on the NTSB Web site: www.ntsb.gov

.

If this exemption permits operations for the purpose of closed

- set motion picture and television filming and production, the following additional conditions and limitations apply.

29. The operator must have a motion picture and television operations manual (MPTOM) as documented in this grant of exemption.

30. At least 3 days before aerial filming, the operator of the UAS affected by this exemption must submit a written Plan of Activities to the local Flight Standards District Office (FSDO) with jurisdiction over the a rea of proposed filming. The 3

- day notification may be waived with the concurrence of the FSDO. The plan of activities must include at least the following:

a. Dates and times for all flights;

b. Name and phone number of the operator for the UAS aerial filming conducted under this grant of exemption;

c. Name and phone number of th e person responsible for the on

- scene operation of the UAS;

d. Make, model, and serial or N− Number of UAS to be used;

e. Name and certificate number of UAS PICs invol ved in the aerial filming;

f. A statement that the operator has obtained permission from property owners and/or local officials to conduct the filming production event; the list of those who gave permission must be made available to the inspector upon request ;

g. Signature of exemption holder or representative; and

h. A description of the flight activity, including maps or diagrams of any area, city, town, county, and/or state over which filming will be conducted and the altitudes essential to accomplish the operati on.

31. Flight operations may be conducted closer than 500 feet from participating persons consenting to be involved and necessary for the filming production, as specified in the exemption holder’s MPTOM.

Unless otherwise specified in this grant of exemption , the UAS, the UAS PIC, and the UAS operations must comply with all applicable parts of 14 CFR including, but not limited to,

parts 45, 47, 61, and 91.8

This exemption terminates on August 31, 2017 , unless sooner superseded or rescinded.

Sincerely,

/s/

John S. Duncan Director, Flight Standards ServiceAlbany

Atlanta

Brussels

Denver

Los Angeles

Miami

New York 1676 International Drive • Penthouse McLean, VA 22102
Tel: 703.336.8800 mckennalong.com Northern Virginia

Orange County

Rancho Santa Fe

San Dieg o

San Francisco

Seoul

Washington, DC

Mark E. McKinnon

703.336.8708 Dane B. Jaques

703.336. 8709
Matthew J. Clark

703.336.8714 EMAIL ADDRESS mmckinnon@mckennalong.com mclark@mckennalong.com djaques@mckennalong.com

March 1 7

, 2014

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

Re: Petition of Pacific Gas and Electric Company

, for an Exemption Pursuant to

Section 33 3 of the FAA Modernization and R eform Act of 2012

To Whom it May Concern :

Pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 ("Reform Act") and 14 C.F.R. Part 11, Pacific Gas and Electric Company ( hereinafter " PG&E " or "Petitioner" ) hereby applies for an exemption from the Federal Aviation Regulations ("FARs") identified below, to allow commercial operation of small unmanned aerial vehicles ( i.e., "small unmanned aircraft" or "UAS") for the purpose of conducting aerial surveys, inspections and patrols of its power

- generation , electric and natural gas transmissions /distribution , and related

facilities

.

This exemption is made based o n information outlined in this P etition for Exemption , as well as the operational req uirements set forth in PG&E's UAS Operations Manual (hereinaf ter

" PG&E's Ops Manual "). PG&E submits this Ops Manual as a confidential doc ument pursuant to 14 C.F.R. § 11.35(b), as the material contain s confidential commercial and proprietary

information that PG&E has not and will not share with others. Additionally , these documents contain operating conditions and procedures that are not generally available to the public and are protected from release under the Freedom of Information Act, 5 U.S.C. § 552 et seq. , and any other requirements established by the FAA pur suant to Section 333 of the Reform Act.U.S. Department of Transportation

March 17, 2014 Page 2

Page 2 of 23 For your convenience, this Petition for Exemption is organized as follows:

I. Description of Petitioner

II. Description of Proposed Operation

A. Inspection and Patrol of PG&E Facilities and Infrastructure

B. Pre cision Aerial Surveys and Inspections

C. Inventory Assets in PG&E Storage Yards

III. Relevant Statutory Authority

IV

. PG&E 's Proposed UAS Operations Meet the Requirements of Section 333 of the Reform

Act

A. Approval is Warranted Based on the UAS's Siz e, Weight, Speed, and Operational Capability

B. Approval is Warranted Based on the Operational Restrictions Set Forth in

the PG&E UAS Operations Manual

V. Regulations From Which Exemption is Requested

A. 14 C.F.R. Part 21, Subpart H

– Airworthi ness Certificates and 14 C.F.R. § 91.203

B. 14 C.F.R. Part 27 Airworthiness Standards: Normal Category

Rotorcraft

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

D. 14 C.F.R. § 91.9(b)(2): Civil Aircraft Flight Manual in the Aircraft an d 14 C.F.R. § 91.203(a) and (b): Carrying Civil Aircraft Certification and Registration

E. 14 C.F.R. §§ 91.9(c), 45.23(b) and 45.27(a): Aircraft Marking and Identification Requirements

F. 14 C.F.R. § 91.103: Preflight Action

G. 14 C.F.R. § 91.109(a): Flight Instruction

H. 14 C.F.R. § 91.119 (b) and (c) : Minimum Safe Altitudes

I. 14 C.F.R. § 91.121: Altimeter Settings

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

Conditions

K. 14 C.F.R. § 91.4 05(a), 91.407(a)(1), 91.409(a)(1 ) & (2) ; 91.417(a) and (b): Maintenance Inspections

L. 14 C.F.R. § 61.113: Private Pilot Privileges And Limitations

VI

. Public Interest

VII

. Privacy

VIII

. Federal Register Summary

IV

. ConclusionU.S. Department of Transportation

March 17, 2014 Page 3

Page 3 of 23 I. D ESCRIPTION OF P ETITIONER

Since 1905, PG&E has ope rated as a public utility corporation furnishing electric and gas

services today to over 16 million people in PG&E’s northern and central California service territory

. PG&E delivers energy to approximately 5. 4 million electric an d 4.3 million natural gas

household s and businesses 24 hours a day, making it one of the largest utility providers in the

United States.

The PG&E service territory extends from far northern California in Eureka, to Bakersfield in the south, and from the Pacific Ocean in the west to the Sierra Nevada Mountains

in the east. P G&E’s service territory is vast, and includes environmental and culturally sensitive geography, and extremes of weather, population density and geology . These extremes present challenges to PG&E in the managem ent and operation of its assets while maintaining the company’s responsibilities to its employees, the public, and the California environment under PG&E’s charter to provide safe, reliable, clean and affordable energy service. UAS vehicles will help PG&E l essen its impact on sensitive areas, increase public and employee safety, and lead to improved reliability and lower overall customer costs.

The acquisition, production, and delivery of energy involve both Electric and Gas Operations units. Electric Opera tions includes Energy Procurement and Power Generation : the acquisition and production of electric power and the management of extensive hydroelectric resources that include much of the state’s principal water collection and storage facilities, and

, Electr i c Transmission and Distribution: the transfer of that electricity to and among wholesale and retail electric customers. Gas Operations involves acquiring natural gas and transferring it to

retail end

- users, storage, generation assets, or to wholesale cus tomers.

PG&E manages a diverse portfolio of Utility Owned Generation (“UOG”) and contracted (“Non

- UOG”) generation that supply power to serve PG&E’s electric load and Ancillary Service requirements and other power needs throughout California and the weste rn United States.

PG&E’s current UOG mix con sists of 109 hydro generators , two natural gas

- fired combined cycle power plants , two nuclear generators, ten reciprocating engine generators, as well as two fuel cell sites, and 10 photovoltaic solar generato r facilities, and hundreds of Non

- UOG conventional and renewable generators and power contracts.U.S. Department of Transportation

March 17, 2014 Page 4

Page 4 of 23 PG&E’s hydro generation facilities are supported by over 400 m iles of canals, flumes, penstocks and tunnels ( “C onveyances ” ) that move water to and between p owerhouses from

water storage facilities located throughout the 140,000 acres comprising PG&E's hydro lands. Many of these conveyance facilities are remotely located high in the Sierra Nevada Mountains

, although others are rural, suburban, and within city limits throughout the foothills and mountains of Northern California. PG&E’s Power Generation Safety, Asset Management, Compliance, and Operations and Maintenance organizations have key responsibilities in assuring the continued safe, reliable and afford able production of most of the electricity generated in Northern California. Inspections are performed on these electric power generation and appurtenant

facilities and lands year

- round using a combination of a erial , vehicular, and foot patrols. Many

faci lities are located in remote locations with terrain that is steep, slippery, or otherwise hazardous to access by personnel and equipment. Regardless, these facilities must be inspected despite challen ges posed by accessibility

- limiting factors such as ice , snow and ra in.

PG&E’s photovoltaic generation sites are prime candidates for close

- in visual and infrared overflights that provide inspection efficiencies in identifying problematic solar panels, strings, or cells. Currently, such inspections must be performed by maintenance personnel walking tens of acres of solar panels. Aerial overflights will help pinpoint potential problem areas and help maintenance personnel focus their activities.

Electric Transmission and Distribution Operations operates and maintains approximately

136 ,000 miles of high voltage electric lines and of related facilities located throughout PG&E’s service area. As with hydro facilities, transmission and distribution facilities are inspected year

round using a combination of air, vehicular, and foot patrols. These facilities often originate at power generation facilities and follow utility rights

- of

- way corridors from and through remote areas to local and regional load centers and through low to very high population density areas. Electric facilities have similar inspection challenges to those found with water conveyances in terms of accessibility and hazardous locations, but are also generally energized with high voltage electricity and are often a hundred or more feet above the ground.

Gas Operations manages PG&E’s 6,750 miles of natural gas transmission pipelines and related facilities located throughout and beyond PG&E’s service territory. These facilities originate at regional hubs and terminate either at generation or stora ge facilities, or at points of distribution interconnections. As with hydro and electric transmission, gas transmission facilities traverse the countryside and include both in

- ground and above

- ground assets such as valves, compressor stations and intercon nections. This presents inspection

- related challenges, again, similar to electric generation and transmission.U.S. Department of Transportation

March 17, 2014 Page 5

Page 5 of 23 PG&E's Aviation Services department within its Transportation Services organization plays a critical role in meeting these safety initiatives. Among other things, PG&E currently conducts powerline and pipeline inspections and patrols using helicopters, as well as monitoring PG&E hydro

- electric facilities, including snowpack surveys, flume and ditch patrols, as well as visual inspections of penst ocks and inverted siphons. UAS vehicles will augment the current aerial inspection fleet.

PG&E initially intends to utilize still and video visible and infrared sensors on UAS vehicles to augment current inspection and patrol methods , and expects later to deploy Li DAR (Light Detection and Radar) , leak detection, and other relevant sensors. UAS vehicles may also fulfill a role in PG&E’s emergency preparedness and operations functions in the event of natural disaster or other emergency incidents, and in phys ical security monitoring of critical facilities.

PG&E will supplement its current asset inspection and assessment practices with UAS

vehicles to reduce human , geologic, and asset

- related hazards and safety risks, increase patrol frequency in difficult

- to

- reach locations that present substantial inspection

- related hazards and safety risks, and will collect data using methods and sensors not presently available to current patrol methods, and with a proximity not available from other available aerial and terr estrial vehicles or foot patrols.

PG&E is dedicated to developing innovative safety initiatives that will allow it to meet all regulatory licensing requirements

. Small UAS s offer a safer, more affordable and more environmentally friendly way to perfo rm certain utility infrastructure inspections and patrols and aerial surveys . Accordingly, PG&E seeks the following exemption to allow commercial use of

small UAS s as described in this Petition for Exemption.

In accordance with 14 C.F.R. § 11.81(a), P G&E provides the following information in support of its Petition for Exemption.

The contact information for Petitioner is as follows:

Ann Kim Lead Counsel, Electric Operations Pacific Gas and Electric Company Law Department

77 Beale Street

San Franc isco, CA 94105 Phone: (415) 973

- 7467 Fax: (415) 973

- 0516

Email: AHK4@pge.comU.S. Department of Transportation

March 17, 2014 Page 6

Page 6 of 23 II. D ESCRIPTION OF P ROPOSED O PERATION

A. Inspection and Patrol of PG&E Facilities and Infrastructure

PG&E intends to use small UAS weigh ing less than 55 pounds for the purpose of conducting inspections , surveys and patrols of power

- generation , and electric and gas

transmission /distribution facilities and associated lands and infrastructure that PG&E owns or

controls

, including:

 Electric P ower Transmission /Distribution ;

 Natural Gas p ipeline s ;

 Electric power generation plants, and;

 W ater storage and conveyance s associated with hydroelectric generation facilities

.

All UAS operations will occur under tightly controlled conditions on propert i es that are either owned, controlled or licensed by PG&E or on propert ies on which PG&E has easements or landowner written permission granting PG&E the right to conduct inspections. These propert ies

are largely located in remote or rural areas of Californi a, away from people or crowds. The proposed UAS operations will be conducted in accordance with the conditions and limitations of this Petition for Exemption and PG&E's Ops Manual. In addition, PG&E intends to use UASs to

conduct initial and recurrent tr aining of its Pilot s and V isual O bservers (“VOs”) , as required by the PG&E Ops Manual. Lastly, PG&E intends to conduct functional test flights following UAS

maintenance or replacement of flight critical components to ensure the aircraft is in a condition safe for operation. Both training and test flights will only occur in controlled and sterile environments as required by the PG&E Ops Manual.

B. Precision Aerial Survey s and Inspection s

PG&E also intends to use UAS weighing less than 55 pounds for the purpose of conducting precision ae rial surveys and inspections of land associated with PG&E's facilities and infrastructure. The purpose of these aerial surveys will be to collect valuable information by mapping the geography and terrain of land that is within close proximity to, and which could potentially impact PG&E's facilities and infrastructure. Like PG&E's facilities and infrastructure, this land is largely located in remote or rural areas of California, away from people or crowds . As require d by PG&E's Ops Manual, aerial surveys will occur under tightly

controlled condition and will be limited to properties that are either owned

, controlled , or licensed by PG&E or on properties on which PG&E has easements or landowner written permission grant ing PG&E the right to conduct aerial surveys.U.S. Department of Transportation

March 17, 2014 Page 7

Page 7 of 23 C. Inventory A ssets in PG&E S torage Y ards

PG&E also intends to use UAS we ighing less than 55 pounds for the purpose of taking inventory of PG&E assets located on PG&E owned property across the storage yards. PG&E will use RFID tag detection as the tool for performing inventory assessments. As required by PG&E's Ops Manual, aerial inventory will occur under tightly controlled conditions and will be limited to PG&E owned property.

III. R ELEVANT S TATUT ORY A UTHORITY

This Petition for Exemption is submitted pursuant to Section 333(a) through (c) of the FAA Modernization and Reform Act of 2012 ("Reform Act"). Congress has directed the FAA "to safely accelerate the integration of civil unmanned aircraft systems into the national airspace system." Pursuant to Section 333 of the Reform Act, the FAA Administrator is to permit unmanned aircraft systems to operate in the national airspace system (“ NAS ”) where it is safe to

do so

, based on the following consid erations:

 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 the V isual L ine

- O f

- S ight ("VLOS") of the Pilot and

VO

.

Additionally, the FAA Admi nistrator has general authority to grant exemptions from the agency's safety regulations and minimum standards when the Administrator decides a requested exemption is in the public interest. See 49 U.S.C. § 106(f) (defining the authority of t he

Administra tor); 49 U.S.C. § 44701(f) (permitting exemp tions from §§ 44701(a), (b) and §§ 44702

– 44716, et seq. ). A party requesting an exemption must explain the reasons why the exemption: (1) would benefit the public as a whole, and (2) would not adversely affect safety (or how it would provide a level of safety at least equal to the existing rules). See 14 C.F.R. § 11.81 (petitions for exemption).U.S. Department of Transportation

March 17, 2014 Page 8

Page 8 of 23 IV. PG&E ' S P ROPOSED UAS O PERATIONS M EET THE R EQUIREMENTS OF S ECTION 333 OF

THE R EFORM A CT

PG&E 's proposed operatio ns in this Petition for Exemption qualify for expedited approval pursuant to Section 333 of the Reform Act as each of the statutory criteria and relevant

factors are satisfied 1

.

A. Approval is Warranted Based on the UAS's Size, Weight, Speed, and Opera tional Capability

PG&E will employ UAS that meet the following characteristics to perform the operations described in this Petition for Exemption:

 The UAS will weigh less than 55 pounds, including energy source(s)

, equipment and payloads ;

 The UA S will no t be flown at a ground speed exceeding 20 mph ;

 The UA S will not be flown at an altitude that exceeds 400 feet Above Ground Level (“ AGL ”) , unless the height of a structure being inspected exceeds 400 feet AGL. Under such circumstances, flights will be limi ted to 50 feet above the highest point of the

structure;

 All UAS flights will be flown in such a way that they can be safely terminated with a reserve battery power of 25 percent of the battery's maximum charge ;

 Altitude information will be generated by equipment onboard the UA S as specif ied using GPS triangulation, digitally e ncoded barometric altimeter, radio altimeter, or any

combination thereof . This information , along with other real

- time flight data, including

, ground speed, heading, direction, re maining battery life, and any applicable warnings will

be transmitted to the Pilot via telemetric data feed, which downlinks from the UA S to a ground

- based

- on

- screen display on the controller or ground control station

.

1 The FAA has issued a grant of exemption in circumstances similar in all material respects to

those presented by PG&E in this Petition for Exemption, including: Chevron USA, Inc. ( E xemption No. 11176), Commonwealth Edison Company ( E xemption . No. 11185)

, Aetos Group, Inc. ( E xemption No. 11209) and Sky

- Futures USA, Inc. (Exemption No. 11208).U.S. Department of Transportation

March 17, 2014 Page 9

Page 9 of 23  The UAS will have failsafe system re dundancies and independent functionality to ensure the overall safety and predictability of the system. If connection to the remote control or ground control station is lost, failsafe systems will permit the UAS to return to a predetermined location and s afely land without injury or damage.

 The radio frequencies used for operations and control of the UA S will comply with the Federal Communications Commission ("FCC") or other appropriate government oversight agency requirements.

B. Approval is War ranted Based on the Operational Restrictions Set Forth in

the PG&E UAS Operations Manual

Together

, PG&E 's Ops Manual and the Manufac turer's Manual 2 for the selected UAS will contain all of the procedures and limitations necessary to successfully perfor m the operations specified i n this Petition for Exemption. To assist the FAA in making a safety assessment of

PG&E 's proposed operations, below is a summary of operational limitations and conditions which will ensure an equivalent or higher level of safet y to operations conducted under current regulatory guidelines:

1. The UAS will weigh less than 55 pounds, fully loaded.

2. Flights will occur within the visual

- line

- of sight of the Pilot and V isual O bserver

.

3. Maximum total flight time for each operat ional flight will be limited to 25 percent reserve battery power remaining.

4. Flights will be operated at an altitude of no more than 400 feet AGL and will not be conducted within navigable controlled airspace without prior written authorization

from the FAA

.

5. Flights will be operated at a lateral distance of at least 500 feet from any persons, inhabited structures, vehicles or vessels that are not involved in the inspection unless permission has been received and appropriate waivers have been signed by the

persons or property owners in advance.

6. Flights will be limited to a speed of 20 mp h

.

2 The term "Manufacturer's Manual" includes all relevant manufacturer publications, including, but not limited to: operations and flight manuals, u ser guides, component maintenance manuals, pilot training manuals, service information letters and, safety/service bulletins

.U.S. Department of Transportation

March 17, 2014 Page 10

Page 10 of 23 7

. The UAS will be operate d and maintained in accordance with the requirements of

the UAS Manufacturer's Manuals and PG&E’s Ops Manual

.

8

. Prior to the operation, the flights will be fully preplanned and briefed, including

, among other things, possible contingencies, emergency procedures , flight crewmember roles and responsibilities, and A ir T raffic C ontrol ("ATC") communication pr ocedures.

9

. PG&E will obtain an Air Traffic Organization ("ATO") issued Certificate of Waiver or Authorization, otherwise known as a COA , prior to conducting any operations under this grant of exemption. This COA will require PG&E to request a No tice to Airman (" NOTAM ") with an appropriate ATC facility between 48 and 72 hours before the flight.

10

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

11

. If the UAS loses communication with the Pilot , it will have the capability to

return to the sterile area home launch location or a pre

- determined safe abort location.

12

. Conti n gency plans wil l be in place to safely terminate flight if there is a loss of

communication between the Pilot and VO(s)

.

13

. The UAS will have the capability to abort flight in the case of unpredicted obstacles or emergencies.

14

. The Pilot o f the UAS will have at least a Private Pilot C ertificate and at least a current

Class III Medical Certificate.

1 5

. VO(s) will have a current Class III Medical Certificate.

16. All UAS operations will occur in daylight, under VFR conditions. IFR flights are prohibited and no flights will occur at night, or in adverse weather conditions.

1 7

. The radio frequency spectrum used for operation and control of the UA will comply

with FCC or other appropriate government oversight agency requirements.

V. R EGULATIONS F ROM W HI CH E XEMPTION I S R EQUESTED

The Federal Aviation Act expressly grants the FAA the authority to issue exemptions. This statutory authority, by its terms, includes exempting civil aircraft, as the term is definedU.S. Department of Transportation

March 17, 2014 Page 11

Page 11 of 23 under § 40101 of the Act, including UASs, fr om its safety regulations and minimum standards when the Administrator decides a requested exemption is in the public interest. 3

PG&E seeks an exemption from several interrelated provisions of 14 C.F.R. Parts 21, 45, 61 and 91 for purposes of conducting the requested oper ations using UAS . Listed below are : (1) the specific sections of 14 C.F.R. for which exemption is sought, and ; (2) the operating procedures and safeguards that Petitioner has established which will ensure a level of safety

better than or equal to the rules from which exemption is sought. 4

A. 14 C.F.R. Part 21, Subpart H

– Airworthiness Certificates and 14 C.F.R. § 91.203(a)(1)

The FAA has stated that no exemption is needed from this section if a finding is made

under the Reform Ac t that the UAS selected provides an equ i v a lent level of safety when compared to manned aircraft normall y used for the same applicat i on. These criteria are met, and

ther efore no exemption is needed. See , e.g., In the Matter of the Petition of Astraeus Aer ial

, Grant of Exemption No. 11062 (Sep. 25, 2014), Docket No. 2014

- 0352, at 13

- 14, 22. If, however, the FAA determines that ther e are some characteristics of the UAS that fail to meet the requirements of the Reform Act, an exemption is requested.

Equiv alent Level of Safety

The UASs that PG&E will use are safe when taking into account their size, weight, speed, and operational capabil ity. As set forth in Section IV(B)

, s upra , the UAS will weigh l ess than 55 pounds and will be flown at less than 20 mph in sterile environments and completely outside controlled airspace. Additionally, the UASs carry neither a pilot nor passengers, carry no explosive materials and/ or flammable liquid fuels, and operate exclusively within the parameters

stated in PG&E 's Op s Manual

.

Operations conducted under this exemption will be closely controlled and monitored by the operator and will be conducted in compliance with local public safety requirements, to provide security for the area of operation. PG&E will also provi de the FAA with advance notice

3 See 49 U.S.C. § 44701(f) (authorizing the grant of exemptions from requirements of regulations prescribed pursuant to Sections 44701(a) and (b) and Sections 44702

- 44716).

4 See 14 C.F.R. § 11.81(e), which requires a petition for exemption to include:

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 you seek exemption.U.S. Department of Transportation

March 17, 2014 Page 12

Page 12 of 23 of all operations via NOTAMs . In all cases, the UAS operated under the proposed conditions, will be at least as safe as, or safer than conventional rotorcraft operating with an airworthiness

certificate without the restricti ons and conditions of the proposed UAS operations.

Further, t he UAS do es not need a means to communicate with other aircraft or ATC, because those capabilities will be possessed by the Pilot and VO , who are not onboard the UAS

. See Grant of Exemption, D ocket FAA

- 2014

- 0352 at 13. In addition, the UAS will be operated at

all times in VLOS and in VFR conditions

. Id.

B. 14 C.F.R. Part 27 Airworthiness Standards: Normal Category

Rotorcraft

Title 14 C.F.R. Part 27 sets forth the procedural require ments for airworthiness certification of normal category rotorcraft. To the extent the Petitioner's UAS would otherwise require certification under Part 27, Petitioner seeks an exemption from Part 27's airworthiness

standards for the same reasons identifi ed in the request for exemption from 14 C.F.R. Part 21, Subpart H, supra

.

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

Inasmuch as there will be no airworthiness certificate issued for the UAS Petitioner

intends to use

, PG&E seeks an exemption fro m 14 C.F.R. § 91.7(a), which requires that a civil aircraft be in airworthy condition to be operated. The FAA has stated that no exemption is required for 14 C.F.R. § 91.7(a) to the extent that the requirements of Part 21 are waived or found inapplicable. See Grant of Exemption, Docket FAA

- 2014

- 0352 at 13

- 14, 22. Accordingly, Petitioner requests that the requirements for § 91.7 (a) be treated in accordance with Section V(A), supra

.

D. 14 C.F.R. § 91.9(b)(2): Civil Aircraft Flight Manual in the Aircraft and 14

C.F.R. § 91.203(a) and (b): Carrying Civil Aircraft Certification and Registration

Title 14 C.F.R. § 91.9(b)(2) and § 91.203(a) and (b) require the operator to carry
airworthiness documents and other aircraft manuals onboard the aircraft. Pursuant to 14 C.F.R. § 91.9(b)(2):

(b) No person may operate a U.S.

- registered civil aircraft

–

... (2) For which an Airplane or Rotorcraft Flight Man ual is required by § 21.5 of this chapter, unless there is available in the aircraft a current approved Airplane

or Rotorcraft Flight Manual, approved manual material , markings, and placards,

or any combination thereof.U.S. Department of Transportation

March 17, 2014 Page 13

Page 13 of 23 Pursuant to 14 C.F.R. § 91.203(a) and (b):

(a) Except as provided in § 91.715, no person may operat e 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 airwo rthiness certificate required by paragraph (a) of this section or a special fligh t authorization issued

under § 91. 715 is displayed at the cabin or cockpit entra nce so that it is legible to

passengers or crew.

Given the small size and configuration of the UAS , it would be impossible to keep

airworthiness documents and other aircraft manuals on board the UAS because there is simply no

room and the UAS has no cabin or cockpit

.

Equivalent Level of Safety

I n an FAA Office of Chief Counsel's Opinion dated August 8, 2014 , and prepared by Dean E. Griffith, Attorney, AGC

- 220, it was acknowledged that the intent of 14 C.F.R. 91.9 (b) and 91.203(a) and (b) is met if the Pilot of the unmanned aircraft has access to the UAS flight manual, registration certificate, and other required documents from the ground control station from which he or she is operating the aircraft. 5 As this FAA Office of Chief Counsel Opinion clarifies, t he intent of the rule is to ensure the Pilot has access to these key documents during flight. Therefore, an equivalent lev el of safety will be achieved by ensuring that the Pilot has

access to the documents at the ground control station from which he or she is piloting the UAS.

E. 14 C.F.R. § § 91.9(c), 45.23(b) and 45.27(a): Aircraft Marking and Identification Requirements

PG&E seeks an exemption from the aircraft marking and identification require ments
contained in 14 C.F.R. § § 91.9(c), 45.23(b) and 45.27(a)

.

 14 C.F.R. § 91.9(c), Civil Aircraft Flight Manual, Marking and Placard requirements, provides that:

5 Memorandum from Mark Bury, FAA Assistant Chief Counsel for International Law, Legislation and Regulation, to John Duncan, FAA Flight Standards Service (Aug. 8, 2014); s ee also id . a t 16

- 18.U.S. Department of Transportation

Marc h 17, 2014 Page 14

Page 14 of 23

No person may operate a U.S.

- registered civil aircraft unless that aircraft is

identified in accordance with Part 45 of this chapter.

 14 C.F.R. § 45.23(b), Markings of the Aircraft, states:

When marks include only the Roman capital letter "N" and the registration number is displayed on limited, restricted or light

- sport category aircraft or

exper imental or provisionally certificated aircraft, the operator must also display on that aircraft near each entrance to the cabin, cockpit, or pilot station, in letters not less than 2 inches nor more than 6 inches high, the words "limited," "restricted," "l ight

- sport, "experimental," or "provisional," as applicable.

 14 C.F.R. § 45.27(a), Rotorcraft, states:

Each operator of a rotorcraft must display on that rotorcraft horizontally on both surfaces of the cabin, fuselage, boom, or tail the marks required by § 45.23.

In a previous Grant of Exemption, the FAA determined that exemption from these requirements was warranted provided that the aircraft "have identification (N

- Number) markings in accordance with 14 C.F.R Part 45, Subpart C if the markings are as lar ge as practicable."

FAA Docket No. FAA

- 2014

- 0352.

Equivalent Level of Safety

All UA S flown by PG&E will bear N

- number markings that are as large as practicable in accordance with 14 C.F.R. Part 45, Subpart C. 6

F. 14 C.F.R. § 91.103: Preflight Action

PG&E seeks an exemption from 14 C.F.R. § 91.103, which requires a Pilot to become familiar with specific information before each flight, including information contained in the

FAA

- approved Flight Manual on board the aircraft. While the Pilot will be fam iliar with all information necessary to safely conduct the flight, an exemption is requested to the exte nt that an

FAA

- approved Flight M anual is required.

6 See, e.g., FAA Docket No. FAA

- 2014

- 0352 , at 14.U.S. Department of Transportation

March 17, 2014 Page 15

Page 15 of 23 Equivalent Level of Safety

An equivalent level of safety will be provided by following PG&E 's Ops Man ual and the

Manufacturer's Manual

. The Pilot will perform a series of checklists designed to identify any defects or inoperable components in accordance with PG&E's Ops Manual , including checklists covering Pre

- Flight , Launch, Landing, and Post

- Flight pro cedures. The Pilot will also be required to review potential local hazards to flight operations

, and to equipment, structures,

vehicles or personnel, and to review weather, flight requirements, battery charge, and landing

and takeoff distance and location s
, UA S performance data, and contingency landing areas

— before initiation of flight. PG&E 's Ops Manual and the Manufacturer's Manual s (and any other relevant manufacturer publications) will be kept at the ground control station and will be

accessible to th e Pilot at all times while operating the UAS.

G. 14 C.F.R. § 91.109(a): Flight Instruction

PG&E seeks an exemption from 14 C.F.R. § 91.109(a), which provides that "[n]o 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." UASs and remotely piloted aircraft, by their design, do not have functional dual contro ls. Instead, flight control is accomplished through the use of a device that communic ates with the UA S via radio

communications. Accordingly, an exemption will be required for the flight instruction requirements of 14 C.F.R. § 91.109(a).

Equivalent Level of Safety

PG&E will evaluate the qualifications of its Pilot s based on their experi ence with the UAS to be operated, which will be verified through testing, in lieu of formalized training. Given the size and speed of the UAS that PG&E intends to use, an equivalent level of safe training can still be performed without dual controls becau se no pilot or passengers are aboard the UAS, and as required by PG&E 's Ops Manual

, all persons will be a safe distance away in the event that the UAS experiences any difficulties during flight instruction. Moreover

, as required by PG&E's Ops Manual, all Pilot and VO training and instruction will occur in a controlled and sterile environment on property owned and controlled by PG&E, and where access by unauthorized

p ersons will be strictly prohibited. As a whole, the restrictions placed on flight instruct ions in PG&E's Ops Manual ensure a level of safety better than or equal to the rules from which exemption is sought

.U.S. Department of Transportation

March 17, 2014 Page 16

Page 16 of 23 H. 14 C.F.R. § 91.119 (b) and (c) : Minimum Safe Altitudes

Given the nature of the proposed operations, PG&E will require an exemption from the

minimum safe altitude requirements of 14 C.F.R. § 91.119 (b) and (c)

. 7 Section 91.119 (c) prescribes the minimum safe altitudes under which aircraft may not operate, including 500 feet above the surface and away from any person, vessel, vehicle, or structure in non

- congested

are as. 8 Section 91.11 9( b) provides that an aircraft may not o perate " over any congested area of a city, town, o r settlement, or over any open air assembly of persons, an altitude of 1,000 feet above the highest obstacle within a horizontal radius of 2,000 feet of the aircraft. "

An exemption is required because the proposed UAS operations will normally need to

occur below 400 feet AGL. In circumstances where the UAS is used to inspect a structure whose height exceeds 4 00 feet AGL, the UAS will not be operated more than 50 feet above the highest point on the structure. Additionally, due the nature of the proposed operations, the Pilot and/or

VO (s ) may need to be less than 500 feet away from the UAS.

Equivalent Level o

f Safety

Compared to flight operations with rotorcraft weighing f ar more than the maximum weight proposed herein, and given the lack of flammable fuel with the UAS s , any risk associated with these operations is far less than those that presently exist with conventional manned aircraft. An equivalent level of safety will be achieved given the size, weight, and speed of the UAS s , as well as the controlled and sterile location where the operations will occur. In order to avoid any

risk to manned aircraft, fl ight opera tions will be restricted to 400 feet AG L or below , or when inspecting a structure whose height exceeds 400 feet AGL, within 50 feet above the highest point

on that structure. As set forth in PG&E 's Ops Manual , the UASs will be operated in a ster ile area that is owned and/ or controlled by PG&E . These conditions and limitations will ensure that the proposed UAS operations are performed in a manner that protects the safety of participants, non

participants, the UAS and other property. As a whole, these requirements ensure a level of safety better than or equal to the rules from which exemption is sought

7 Relief from § 91.119(a) will not be necessary because Petitioner will be able to perform an emergency landing without undue hazard to persons or property on the ground in the event of a

failure. See e.g ., Grant of Exemption No. 11157 to Slugwear , Inc., dba Likeonatree Aerial (FAA

- 2014

- 0534 at 15).

8 See 14 C.F.R. § 91.119(c)

.U.S. Department of Transportation

March 17, 2014 Page 17

Page 17 of 23 I. 14 C.F.R. § 91.121: Altimeter Settings

This petition seeks an exemption from 14 C.F.R. § 91.121, which requires a person operating an aircra ft to maintain cruising altitude or flight level by reference to an altimeter that is set to the elevation of the departure airport or barometric pressure. An exemption is required to the extent that the UASs do not have a barometric altimeter, but rather a GPS altitude read

out.

Equivalent Level of Safety

The FAA has stated that an equivalent level of safety to the requirements of 14 C.F.R. § 91.121 can be achieved in circumstances where: (1) the UASs will be operated at 400 feet AGL or below, (2) with in VLOS , (3) where GPS based altitude information is relayed in real time to the operator at a ground

- based on

- screen display and, (4) where prior to each flight, a zero altitude initiation point is established for the Pilot to confirm accuracy of the onbo ard GPS. 9

The UAS s that PG&E uses for performing the proposed UAS operations will meet all these operational characteristics. Moreover, as required by PG&E's Ops Manual, the Pilot will be required to calibrate the UA's GPS compass prior to each flight operation. Like the Grant of Exemption to Astraeus Aerial, the UASs PG&E intends to use, and the safety mitigation procedures contained in PG&E's Ops Manual, both ensure that an equivalent le vel of safety will be achieved, and a grant of exemption to the requirements of § 191.121 is therefore appropriate.

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

Conditions

PG&E requests an exemption from 14 C.F.R. § 91.151(a)'s fuel requirements for flight in

VFR conditions. Section 91.151 (a) states:

(a) No person may begin 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 th e day, to fly after that for at least 30 minutes; or

(2) At night, to fly after that for at least 45 minutes.

The current state of technology in modern lithium

- ion batteries used to power UAS do not have sufficient capacity to permit meaningful flight ope rations, while at the same time

9 See Grant of Exemption to Astraeus Aerial, Docket No. FAA

- 2014

- 0352 at 21.U.S. Department of Transportation

March 17, 2014 Page 18

Page 18 of 23 maintaining a 30 minute battery reserve. A n exemption from the fuel requirements of 14 C.F.R. § 91.151(a) is therefore required.

Equivalent Level of Safety

The FAA has stated that an equivalent level of safety can be achi eved by requiring that each UAS operation be completed within 30 minutes flight time or with 25 percent battery power remaining, whichever occurs first. 10 PG&E 's Ops Manual include s a similar restriction which requires UAS flight operations to be terminate d once the battery reserve reaches 25 percent o f the battery's maximum charge

.

The UAS s that PG&E will use under this grant of exemption will include low battery warning system. The amount of battery reserve power remaining will be transmitted to the Pil ot via telemetric data feed, which downlinks from the UA S to a ground

- based

- on

- screen display. As required by PG&E's Ops Manual, the Pilot will promptly fly the UA S back to the home launch location or pre

- determined abort location where the UA S may safely land , while still maintaining a minimum of 25 percent reserve battery power. PG&E submits that the procedures requiring our flights to be safely terminated once the batteries fall below 25 percent capacity,

combined with the requirement that flights only be conducted within a secure, isolated area, using a UA S weighting less than 55 pounds, and within VLOS of the Pilot and VO (s)

, ensure that the proposed operation will provide an equivalent level of safety to that provided by the regulations from which ex emption is sought

.

K. 14 C.F.R. § 91.4 05(a), 91.407(a)(1), 91.409(a) (1 ) and (2) ; 91.417(a) and (b):

Maintenance & Inspections

PG&E requests relief from the regulatory maintenance, alteration and inspection requirements contained in 14 C.F.R. § 9 1.405(a), 91.407(a)(1), 91 .409(a) (1) & (2); 91.417(a) and (b). These regulations specify maintenance and inspection standards in reference to 14

C.F.R. Part 43. See, e.g., 14 C.F.R. § 91.405(a) (stating that each owner or operator of an aircraft "[s]hal l have the aircraft inspected as prescribed in subpart E of this part and shall between required inspections. . . have discrepancies repaired as prescribed in part 43 of this chapter"). An exemption from these regulations is needed because Part 43 and the se sections only apply to aircraft with an airworthiness certificate, which the UAS to be operated under this grant of exemption will not have.

10 Id.U.S. Department of Transportation

March 17, 2014 Page 19

Page 19 of 23 Equivalent Level of Safety

An equivalent level of safety will be achieved because maintenance and inspections will be performed in accordance with the Manufacturer's Manual and any applicable manufacturer Safety or Service Bulletins. Further, as required by PG&E 's Ops Manual

, and in accordance with the Manufacturer's Manual, prior to each flight, the Pilot will conduct a pre

- flight inspection

of the UA S and all associated equipment to account for all discrepancies and/or inoperable

components . Maintenance will be performed and verified to address any conditions potentially affecting safe operation of the UAS and no flights will occur unless

, and until all flight critical components of the UAS have been found to be airworthy and in a condition safe for operation. A functional test flight will be conducted following the replacement of any flight

- critical

components . As required by PG&E's Ops Manual, the Pilot who conducts the functional test flight will make an entry in the UAS aircraft records of the flight.

PG&E's Ops Manual also includes requirements to follow the manufacturer’s UAS aircraft/component, mainten ance, overhaul, replacement, inspection, and life limit requirements for the following applicable components: powertrain system (powerplant), propellers, avionics and control surfaces (including ailerons/elevons), structures & airframe, camera system,

elec trical systems (including batteries), ground control station, hazard accessories, and spare

parts. Further, PG&E's Ops Manual also include s procedures to document and maintain a record of the UAS maintenance, preventative maintenance, alterations, status of replacement/overhaul component parts, and the total time in service of the UAS s used under this grant of exemption

. As a whole, the maintenance and inspection procedures required in PG&E's Ops Manual ensure that an equivalent or higher level of safety w ill be achieved.

L. 14 C.F.R. § 61.113: Private Pilot Privileges And Limitations

PG&E seeks exemption from 14 CFR § 61.113, which restricts private pilot certificate holders from flying aircraft for compensation or hire, and would also require a secon d class medical certificate. The purpose of Part 61 is to ensure that the skill and competency of any pilot matches the airspace in which the pilot will be operating, as well as requiring certifications if the private pilot is carrying passengers or cargo for hire. In this case, while the UASs will be operated as part of a commercial operation, it carries neither passengers nor cargo.

In the Grant of Exemption to Astraeus Aerial (FAA Docket No. FAA

- 2014

- 0352), the FAA determined that the unique characte ristics of UAS operation outside of controlled airspace did not warrant the additional costs and restrictions attendant with requiring the pilot to have a commercial pilot certificate and Class II Medical Certificate.

The restrictions PG&E has placed on its UAS operations meet or exceed the restrictions similarly imposed on Astraeus Aerial in FAA Docket No. FAA

- 2014

- 0352. PG&E will only perform UAS operations in controlled and sterile areas away from persons and property notU.S. Department of Transportation

March 17, 2014 Page 20

Page 20 of 23 involved in the operation. T he UASs will be flown based on VLOS at 400 feet AGL or below

. 11
Moreover, a NOTAM will be issued between 48 and 72 hours before the flight is to occur, and the flight will be conducted in coordination , as necessary, with the applicable

.

Equivalent Level of Safety

In addition to these flight restrictions, PG&E will further ensure safe operation by requiring its Pilots to be thoroughly versed not only in airspace and communication requirements of Part 91 applicable to all aircraft, but also in the unique asp ects of UAS flight . Petitioner's

P ilots will be required to maintain an understanding of all normal, abnormal and emergency procedures of the UAS he or she is operating. Pilots will also be required to accumulate and log,

in a manner consistent with 14 C .F.R. § 61.51(b), a minimum of 200 flight cycles and 25 hours of total time as a UAS rotorcraft pilot, and at least 10 hours piloting the UAS used to perform operations under this exemption. Petitioner's P ilots will also be required to log at least 3 take offs and landings of the UAS used to perform operations under this exemption. Pilot currency requirements in PG&E's Ops Manual also require the P ilot to have conducted at least 3 launch and recovery operations, and have accrued at least 5 hours of flight time with the UAS in the preceding 90 days to be considered current. The Pilot qualification, training, and currency requirements in PG&E's Ops Manual ensure that its Pilots are competent and proficient in the UAS they are operating. These procedures ens ure that an equivalent or higher level of safety

will be achieved.

V I. P UBLIC I NTEREST

The public interest will be served by granting PG& E 's Petition for Exemption. Congress has established a national policy that favors early integration of UAS into the NAS in controlled, safe working environments such as those proposed by PG&E . Granting this Petition for Exemption helps fulfill Congress' goal in passing Section 333(a ) through (c) of the Reform Act, namely; the FAA Administrator's assessmen t of whether certain UAS may operate safely in the NAS before completion of the rulemaking required under Section 332 of the Reform Act.

The proposed UAS operations in this Petition for Exemption will also improve safety and reduce risk by alleviating the public's exposure to danger associated with current aerial survey and inspection methods, namely, full size helicopters. The public's interest is furthered by reducing human exposure to death or serious injury associated with manned aircraft performin g

t hese activities.

11 In circumstances where a structure being inspected exceeds 400 feet AGL, the UAS will not be operat ed more than 5 0 feet above the highest point on the structure.U.S. Department of Transportation

March 17, 2014 Page 21

Page 21 of 23 PG&E’s UAS operations will additionally improve the safety of PG&E and contractor employees who currently must conduct ground

- based inspections and patrols in inherently

hazardous environmental, geologic, and structural conditions that can be readily observed using

UAS. Hazards and safety risks, for example, include cliff

- sides or dams that presently require lowering personnel on ropes to inspect, or flumes and dam faces and transmission towers or pipelines that require specialized tra ining and equipment to access and inspect safely. These and other assets present substantial personnel fall

- or exertion

- risk as some include walking hundreds of feet of steep stairs in isolated remote locations to perform asset inspections and assessment s. UAS vehicles will help mitigate these safety risks and improve data quality.

PG&E's UASs will be battery powe red and create no emissions. In the unlikely event of

an accident

, there is no fuel to ignite and explode. Any impact of Petitioner's lightwei ght sUASs is, obviously, far less than a full size helicopter. The public's interest is furthered by minimizing

the ecological impact of an accident on the remote and delicate habitat that PG&E's facilities pass through. The public's interest is also furt hered by reducing human exposure to potentially

harmful or hazardous emissions associated with manned aircraft.

Aerial survey s and inspections of utility power

- generation

, electric and natural gas

transmission /distribution

, and related facilities play a cr itical role in ensuring a safe, reliable, affordable, and environmentally sound supply of energy to the public. The public as a whole

benefits from the safer and more cost

- effective method of performing aerial surveys and inspections using small UAS.

V I I. P RIVACY

All PG&E UAS operations performed under this grant of e xemption will be conducted in accordance with applicable federal, state, or local laws regarding privacy. PG&E will not conduct flight operations over property that it does not own or con trol without the prior consent and knowledge of the land owner/controller . Moreover, PG&E will not capture or use images from neighboring properties within the vicinity of UAS flight operations.

VIII

. F EDERAL R EGISTER S UMMARY

Pursuant to 14 C.F.R. Part 11, the following summary is provided for publication in the

F EDERAL R EGISTER , should it be determined that publication is needed:

Petitioner seeks an exemption from the following sections in Title 14 of the Code of Federal Regulations :

Part 21, Sub part H; Part 27; 45.23(b); 45.27(a); 61. 113 ; 91.7(a); 91.9(b)(2); 91.9(c); 91.103; 91.109(a); 91.119 (b) and (c) ; 91.121; 91.151(a); 91.203 (a) & (b); 91.405(a); 91.407(a)(1); 91.409(a) (1) & (2); 91.417 (a) & (b).U.S. Department of Transportation

March 17, 2014 Page 22

Page 22 of 23 The exemption will enhance safety by reducin g risk to the general public and property owners from the substantial hazards associated with performing equivalent utility power

generation aerial surveys and inspections with conventional fixed

- wing aircraft

, rotorcraft , or other methods

.

IV

. C ONCLUSION

PG&E 's Petition for Exemption demonstrates the appropriate safeguards and criteria that Congress articulated in Section 333 of the Reform Act

, including weight, speed, operating capabilities, proximity to airports and populated area s, operation within VLO S and national security concerns

. The proposed UAS operations will benefit the public as a whole by reducing human exposure to death or serious injury associated with manned aircraft performing these

activities. The public will also benefit from the redu ced environmental impact achieved through

use of Petitioner's UAS. In consideration of the foregoing, this Petition for Exemption provides

the FAA with more than adequate justification to allow commercial operation of PG&E 's small UASs for the purpose of inspecting

, patrolling , and surveying its utility power

- generation

, electric and natural gas transmission/distribution facilities, infrastructure and associated land.

We thank you for your prompt consideration of our requested exemptions. Should you

ha ve any questions, or if you need any additional information to support the requested exemptions, please do not hesitate to contact the undersigned

.

Very truly yours,

Dane B. Jaques

M ark E. McKinnon

Matthew J. Clark

Counsel for PetitionerU.S. Department of Transportation

March 17, 2014 Page 23

Page 23 of 23 (The following attached items contain proprietary and commercial information exempt from disclosure under the Freedom of Information Act, 5 U.S.C. § 522 et seq. , and should be held in a separate file pursuant to 14 C.F.R. § 11.35(b)).

Attachmen ts:

PG&E UAS Operations Manual