235 
‘‘(1) a final rule on small unmanned aircraft 
systems that will allow for civil operation of such 
systems in the national airspace system, to the ex-
tent the systems do not meet the requirements for 
expedited operational authorization under section 
45508; 
‘‘(2) a notice of proposed rulemaking to imple-
ment the recommendations of the plan required 
under subsection (a)(1), with the final rule to be 
published not later than 16 months after the date of 
publication of the notice; and 
‘‘(3) an update to the Administration’s most re-
cent policy statement on unmanned aircraft systems, 
contained in Docket No. FAA–2006–25714. 
‘‘(c) EXPANDING USE
OF UNMANNED AIRCRAFT 
SYSTEMS IN ARCTIC.— 
‘‘(1) IN GENERAL.—Not later than August 12, 
2012, the Secretary shall develop a plan and initiate 
a process to work with relevant Federal agencies and 
national and international communities to designate 
permanent areas in the Arctic where small un-
manned aircraft may operate 24 hours per day for 
research and commercial purposes. The plan for op-
erations in these permanent areas shall include the 
development of processes to facilitate the safe oper-
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ation of unmanned aircraft beyond line of sight. 
Such areas shall enable over-water flights from the 
surface to at least 2,000 feet in altitude, with in-
gress and egress routes from selected coastal launch 
sites. 
‘‘(2) AGREEMENTS.—To implement the plan 
under paragraph (1), the Secretary may enter into 
an agreement with relevant national and inter-
national communities. 
‘‘(3) AIRCRAFT APPROVAL.—Not later than 1 
year after the entry into force of an agreement nec-
essary to effectuate the purposes of this subsection, 
the Secretary shall work with relevant national and 
international communities to establish and imple-
ment a process, or may apply an applicable process 
already established, for approving the use of un-
manned aircraft in the designated permanent areas 
in the Arctic without regard to whether an un-
manned aircraft is used as a public aircraft, a civil 
aircraft, or a model aircraft. 
‘‘§ 45503. Risk-based permitting of unmanned aircraft 
systems 
‘‘(a) IN GENERAL.—Not later than 120 days after 
the date of enactment of this section, the Administrator 
of the Federal Aviation Administration shall establish pro-
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cedures for issuing permits under this section with respect 
to certain unmanned aircraft systems and operations 
thereof. 
‘‘(b) PERMITTING STANDARDS.—Upon the submis-
sion of an application in accordance with subsection (d), 
the Administrator shall issue a permit with respect to the 
proposed operation of an unmanned aircraft system if the 
Administrator determines that the unmanned aircraft sys-
tem and the proposed operation achieve a level of safety 
that is equivalent to— 
‘‘(1) other unmanned aircraft systems and op-
erations permitted under regulation, exemption, or 
other authority granted by the Administrator; or 
‘‘(2) any other aircraft operation approved by 
the Administrator with similar risk characteristics or 
profiles. 
‘‘(c) SAFETY CRITERIA
FOR CONSIDERATION.—In 
determining whether a proposed operation meets the 
standards described in subsection (b), the Administrator 
shall consider the following safety criteria: 
‘‘(1) The kinetic energy of the unmanned air-
craft system. 
‘‘(2) The location of the proposed operation, in-
cluding the proximity to— 
‘‘(A) structures; 
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‘‘(B) congested areas; 
‘‘(C) special-use airspace; and 
‘‘(D) persons on the ground. 
‘‘(3) The nature of the operation, including any 
proposed risk mitigation. 
‘‘(4) Any known hazard of the proposed oper-
ation and the severity and likelihood of such hazard. 
‘‘(5) Any known failure modes of the unmanned 
aircraft system, failure mode effects and criticality, 
and any mitigating features or capabilities. 
‘‘(6) The operational history of relevant tech-
nologies, if available. 
‘‘(7) Any history of civil penalties or certificate 
actions by the Administrator against the applicant 
seeking the permit. 
‘‘(8) Any other safety criteria the Administrator 
considers appropriate. 
‘‘(d) APPLICATION.—An application under this sec-
tion shall include evidence that the unmanned aircraft sys-
tem and the proposed operation thereof meet the stand-
ards described in subsection (b) based on the criteria de-
scribed in subsection (c). 
‘‘(e) SCOPE OF PERMIT.—A permit issued under this 
section shall— 
‘‘(1) be valid for 5 years; 
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‘‘(2) constitute approval of both the airworthi-
ness of the unmanned aircraft system and the pro-
posed operation of such system; 
‘‘(3) be renewable for additional 5-year periods; 
and 
‘‘(4) contain any terms necessary to ensure 
aviation safety. 
‘‘(f) NOTICE.—Not later than 120 days after the Ad-
ministrator receives a complete application under sub-
section (d), the Administrator shall provide the applicant 
written notice of a decision to approve or disapprove of 
the application or to request a modification of the applica-
tion that is necessary for approval of the application. 
‘‘(g) PERMITTING
PROCESS.—The Administrator 
shall issue a permit under this section without regard to 
subsections (b) through (d) of section 553 of title 5 and 
chapter 35 of title 44 if the Administrator determines that 
the operation permitted will not occur near a congested 
area. 
‘‘(h) EXEMPTION FROM CERTAIN REQUIREMENTS.— 
To the extent consistent with aviation safety, the Adminis-
trator may exempt applicants under this section from 
paragraphs (1) through (3) of section 44711(a). 
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‘‘(i) WITHDRAWAL.—The Administrator may, at any 
time, modify or withdraw a permit issued under this sec-
tion. 
‘‘(j) APPLICABILITY.—This section shall not apply to 
small unmanned aircraft systems and operations author-
ized by the final rule on small unmanned aircraft systems 
issued pursuant to section 45502(b)(1). 
‘‘(k) EXPEDITED REVIEW.—The Administrator shall 
review and act upon applications under this section on an 
expedited basis for unmanned aircraft systems and oper-
ations thereof to be used primarily in, or primarily in di-
rect support of, emergency preparedness, emergency re-
sponse, or disaster recovery efforts, including efforts in 
connection with natural disasters and severe weather 
events. 
‘‘§ 45504. Public unmanned aircraft systems 
‘‘(a) GUIDANCE.—Not later than November 10, 
2012, the Secretary of Transportation shall issue guidance 
regarding the operation of public unmanned aircraft sys-
tems to— 
‘‘(1) expedite the issuance of a certificate of au-
thorization process; 
‘‘(2) provide for a collaborative process with 
public agencies to allow for an incremental expan-
sion of access to the national airspace system as 
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technology matures and the necessary safety anal-
ysis and data become available, and until standards 
are completed and technology issues are resolved; 
‘‘(3) facilitate the capability of public agencies 
to develop and use test ranges, subject to operating 
restrictions required by the Federal Aviation Admin-
istration, to test and operate unmanned aircraft sys-
tems; and 
‘‘(4) provide guidance on a public entity’s re-
sponsibility when operating an unmanned aircraft 
without a civil airworthiness certificate issued by the 
Administration. 
‘‘(b) STANDARDS
FOR OPERATION
AND CERTIFI-
CATION.—Not later than December 31, 2015, the Admin-
istrator shall develop and implement operational and cer-
tification requirements for the operation of public un-
manned aircraft systems in the national airspace system. 
‘‘(c) AGREEMENTS
WITH
GOVERNMENT
AGEN-
CIES.— 
‘‘(1) IN
GENERAL.—Not later than May 14, 
2012, the Secretary shall enter into agreements with 
appropriate government agencies to simplify the 
process for issuing certificates of waiver or author-
ization with respect to applications seeking author-
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242 
ization to operate public unmanned aircraft systems 
in the national airspace system. 
‘‘(2) CONTENTS.—The agreements shall— 
‘‘(A) with respect to an application de-
scribed in paragraph (1)— 
‘‘(i) provide for an expedited review of 
the application; 
‘‘(ii) require a decision by the Admin-
istrator on approval or disapproval within 
60 business days of the date of submission 
of the application; and 
‘‘(iii) allow for an expedited appeal if 
the application is disapproved; 
‘‘(B) allow for a one-time approval of simi-
lar operations carried out during a fixed period 
of time; and 
‘‘(C) allow a government public safety 
agency to operate unmanned aircraft weighing 
4.4 pounds or less, if operated— 
‘‘(i) within the line of sight of the op-
erator; 
‘‘(ii) less than 400 feet above the 
ground; 
‘‘(iii) during daylight conditions; 
‘‘(iv) within Class G airspace; and 
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243 
‘‘(v) outside of 5 statute miles from 
any airport, heliport, seaplane base, space-
port, or other location with aviation activi-
ties. 
‘‘§ 45505. Special rules for certain unmanned aircraft 
systems 
‘‘(a) IN GENERAL.—Notwithstanding any other re-
quirement of this subtitle, and not later than August 12, 
2012, the Secretary of Transportation shall determine if 
certain unmanned aircraft systems may operate safely in 
the national airspace system before completion of the plan 
and rulemaking required by section 45502 or the guidance 
required under section 45504. 
‘‘(b) ASSESSMENT OF UNMANNED AIRCRAFT SYS-
TEMS.—In making the determination under subsection 
(a), the Secretary shall determine, at a minimum— 
‘‘(1) which types of unmanned aircraft systems, 
if any, as a result of their size, weight, speed, oper-
ational capability, proximity to airports and popu-
lated areas, and operation within visual line of sight 
do not create a hazard to users of the national air-
space system or the public or pose a threat to na-
tional security; and 
‘‘(2) whether a certificate of waiver, certificate 
of authorization, or airworthiness certification under 
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section 44704 is required for the operation of un-
manned aircraft systems identified under paragraph 
(1). 
‘‘(c) REQUIREMENTS FOR SAFE OPERATION.—If the 
Secretary determines under this section that certain un-
manned aircraft systems may operate safely in the na-
tional airspace system, the Secretary shall establish re-
quirements for the safe operation of such aircraft systems 
in the national airspace system. 
‘‘§ 45506. Certification of new air navigation facilities 
for unmanned aircraft and other aircraft 
‘‘(a) IN GENERAL.—Not later than 18 months after 
the date of enactment of this section, and notwithstanding 
section 2208 of the FAA Extension, Safety, and Security 
Act of 2016 (49 U.S.C. 40101 note), the Administrator 
of the Federal Aviation Administration shall initiate a 
rulemaking to establish procedures for issuing air naviga-
tion facility certificates pursuant to section 44702 to oper-
ators of— 
‘‘(1) UTM for unmanned aircraft operations 
that occur primarily or exclusively in airspace 400 
feet above ground level and below; and 
‘‘(2) low-altitude CNS for aircraft operations 
that occur primarily or exclusively in airspace 400 
feet above ground level and below. 
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‘‘(b) MINIMUM REQUIREMENTS.—In issuing a final 
rule pursuant to subsection (a), the Administrator, at a 
minimum, shall provide for the following: 
‘‘(1) CERTIFICATION STANDARDS.—The Admin-
istrator shall issue an air navigation facility certifi-
cate under the final rule if the Administrator deter-
mines that a UTM or low-altitude CNS facilitates or 
improves the safety of unmanned aircraft or other 
aircraft operations that occur primarily or exclu-
sively in airspace 400 feet above ground level and 
below, including operations conducted under a waiv-
er issued pursuant to subpart D of part 107 of title 
14, Code of Federal Regulations. 
‘‘(2) CRITERIA FOR CONSIDERATION.—In deter-
mining whether a UTM or low-altitude CNS meets 
the standard described in paragraph (1), the Admin-
istrator shall, as appropriate, consider— 
‘‘(A) protection of persons and property on 
the ground; 
‘‘(B) remote identification of aircraft; 
‘‘(C) collision avoidance with respect to ob-
stacles and aircraft; 
‘‘(D) deconfliction of aircraft trajectories; 
‘‘(E) safe and reliable interoperability or 
noninterference with air traffic control and 
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other systems operated in the national airspace 
system; 
‘‘(F) detection of noncooperative aircraft; 
‘‘(G) geographic and local factors; 
‘‘(H) aircraft equipage; and 
‘‘(I) qualifications, if any, necessary to op-
erate the UTM or low-altitude CNS. 
‘‘(3) APPLICATION.—An application for an air 
navigation facility certificate under the final rule 
shall include evidence that the UTM or low-altitude 
CNS meets the standard described in paragraph (1) 
based on the criteria described in paragraph (2). 
‘‘(4) SCOPE OF CERTIFICATE.—The Adminis-
trator shall ensure that an air navigation facility 
certificate issued under the final rule— 
‘‘(A) constitutes approval of the UTM or 
low-altitude CNS for the duration of the term 
of the certificate; 
‘‘(B) constitutes authorization to operate 
the UTM or low-altitude CNS for the duration 
of the term of the certificate; and 
‘‘(C) contains such limitations and condi-
tions as may be necessary to ensure aviation 
safety. 
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‘‘(5) NOTICE.—Not later than 120 days after 
the Administrator receives a complete application 
under the final rule, the Administrator shall provide 
the applicant with a written approval, disapproval, 
or request to modify the application. 
‘‘(6) LOW RISK AREAS.—Under the final rule, 
the Administrator shall establish expedited proce-
dures for approval of UTM or low-altitude CNS op-
erated in— 
‘‘(A) airspace away from congested areas; 
or 
‘‘(B) other airspace above areas in which 
operations of unmanned aircraft pose very low 
risk. 
‘‘(7) EXEMPTION
FROM
CERTAIN
REQUIRE-
MENTS.—To the extent consistent with aviation safe-
ty, the Administrator may exempt applicants under 
the final rule from requirements under sections 
44702, 44703, and 44711. 
‘‘(8) CERTIFICATE
MODIFICATIONS
AND
REV-
OCATIONS.—A certificate issued under the final rule 
may, at any time, be modified or revoked by the Ad-
ministrator. 
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‘‘(c) CONSULTATION.—In carrying out this section, 
the Administrator shall consult with other Federal agen-
cies, as appropriate. 
‘‘§ 45507. Special rules for certain UTM and low-alti-
tude CNS 
‘‘(a) IN GENERAL.—Notwithstanding any other re-
quirement of this chapter, and not later than 120 days 
after the date of enactment of this section, the Secretary 
of Transportation shall determine if certain UTM and low- 
altitude CNS may operate safely in the national airspace 
system before completion of the rulemaking required by 
section 45506. 
‘‘(b) ASSESSMENT
OF UTM AND LOW-ALTITUDE 
CNS.—In making the determination under subsection (a), 
the Secretary shall determine, at a minimum, which types 
of UTM and low-altitude CNS, if any, as a result of their 
operational capabilities, reliability, intended use, and areas 
of operation, and the characteristics of the aircraft in-
volved, do not create a hazard to users of the national 
airspace system or the public. 
‘‘(c) REQUIREMENTS FOR SAFE OPERATION.—If the 
Secretary determines that certain UTM and low-altitude 
CNS may operate safely in the national airspace system, 
the Secretary shall establish requirements for their safe 
operation in the national airspace system. 
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‘‘(d) EXPEDITED PROCEDURES.—The Secretary shall 
provide expedited procedures for reviewing and approving 
UTM or low-altitude CNS operated to monitor or control 
aircraft operated primarily or exclusively in airspace 
above— 
‘‘(1) croplands; 
‘‘(2) areas other than congested areas; and 
‘‘(3) other areas in which the operation of un-
manned aircraft poses very low risk. 
‘‘(e) CONSULTATION.—In carrying out this section, 
the Administrator shall consult with other Federal agen-
cies, as appropriate. 
‘‘§ 45508. Operation of small unmanned aircraft 
‘‘(a) EXEMPTION AND CERTIFICATE OF WAIVER OR 
AUTHORIZATION FOR CERTAIN OPERATIONS.—Not later 
than 270 days after the date of enactment of this section, 
the Administrator of the Federal Aviation Administration 
shall establish a procedure for granting an exemption and 
issuing a certificate of waiver or authorization for the op-
eration of a small unmanned aircraft system in United 
States airspace for the purposes described in section 
45501(1). 
‘‘(b) OPERATION OF EXEMPTION AND CERTIFICATE 
OF WAIVER OR AUTHORIZATION.— 
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‘‘(1) 
EXEMPTION.—An 
exemption 
granted 
under this section shall— 
‘‘(A) exempt the operator of a small un-
manned aircraft from the provisions of title 14, 
Code of Federal Regulations, that are exempted 
in Exemption No. 11687, issued on May 26, 
2015, Regulatory Docket Number FAA–2015– 
0117, or in a subsequent exemption; and 
‘‘(B) contain conditions and limitations de-
scribed in paragraphs 3 through 31 of such Ex-
emption No. 11687, or conditions and limita-
tions of a subsequent exemption. 
‘‘(2) CERTIFICATE OF WAIVER OR AUTHORIZA-
TION.—A certificate of waiver or authorization 
issued under this section shall allow the operation of 
small unmanned aircraft according to— 
‘‘(A) the standard provisions and air traf-
fic control special provisions of the certificate of 
waiver or authorization FAA Form 7711–1 (7– 
74); or 
‘‘(B) the standard and special provisions of 
a subsequent certificate of waiver or authoriza-
tion. 
‘‘(c) NOTICE TO ADMINISTRATOR.—Before operating 
a small unmanned aircraft pursuant to a certificate of 
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waiver or authorization granted under this section, the op-
erator shall provide written notice to the Administrator, 
in a form and manner specified by the Administrator, that 
contains such information and assurances as the Adminis-
trator determines necessary in the interest of aviation 
safety and the efficiency of the national airspace system, 
including a certification that the operator has read, under-
stands, and will comply with all terms, conditions, and lim-
itations of the certificate of waiver or authorization. 
‘‘(d) WAIVER OF AIRWORTHINESS CERTIFICATE.— 
Notwithstanding section 44711(a)(1), the holder of a cer-
tificate of waiver or authorization granted under this sec-
tion may operate a small unmanned aircraft under the 
terms, conditions, and limitations of such certificate with-
out an airworthiness certificate. 
‘‘(e) PROCEDURE.—The granting of an exemption or 
the issuance of a certificate of waiver or authorization, or 
any other action authorized by this section, shall be made 
without regard to— 
‘‘(1) section 553 of title 5; or 
‘‘(2) chapter 35 of title 44. 
‘‘(f) STATUTORY CONSTRUCTION.—Nothing in this 
section may be construed to— 
‘‘(1) affect the issuance of a rule by or any 
other activity of the Secretary of Transportation or 
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the Administrator under any other provision of law; 
or 
‘‘(2) invalidate an exemption or certificate of 
waiver or authorization issued by the Administrator 
before the date of enactment of this section. 
‘‘(g) EFFECTIVE PERIODS.—An exemption or certifi-
cate of waiver or authorization issued under this section, 
or an amendment of such exemption or certificate, shall 
cease to be valid on the effective date of a final rule on 
small unmanned aircraft systems issued under section 
45502(b)(1). 
‘‘§ 45509. Special rules for model aircraft 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law relating to the incorporation of unmanned 
aircraft systems into Federal Aviation Administration 
plans and policies, including this subtitle, the Adminis-
trator of the Federal Aviation Administration may not 
promulgate any rule or regulation regarding a model air-
craft or an aircraft being developed as a model aircraft 
(other than the registration of certain model aircraft pur-
suant to section 44103), if— 
‘‘(1) the aircraft is flown strictly for hobby or 
recreational use; 
‘‘(2) the aircraft is operated in accordance with 
a community-based set of safety guidelines and with-
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in the programming of a community-based organiza-
tion; 
‘‘(3) the aircraft is limited to not more than 55 
pounds unless otherwise certified through a design, 
construction, inspection, flight test, and operational 
safety program administered by a community-based 
organization; 
‘‘(4) the aircraft is operated in a manner that 
does not interfere with and gives way to any manned 
aircraft; 
‘‘(5) the aircraft is not operated over or within 
the property of a fixed site facility that operates 
amusement rides available for use by the general 
public or the property extending 500 lateral feet be-
yond the perimeter of such facility unless the oper-
ation is authorized by the owner of the amusement 
facility; and 
‘‘(6) when flown within 5 miles of an airport, 
the operator of the aircraft provides the airport op-
erator and the airport air traffic control tower (when 
an air traffic facility is located at the airport) with 
prior notice of the operation (model aircraft opera-
tors flying from a permanent location within 5 miles 
of an airport should establish a mutually agreed 
upon operating procedure with the airport operator 
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and the airport air traffic control tower (when an air 
traffic facility is located at the airport)). 
‘‘(b) COMMERCIAL OPERATION FOR INSTRUCTIONAL 
OR EDUCATIONAL PURPOSES.—A flight of an unmanned 
aircraft shall be treated as a flight of a model aircraft 
for purposes of subsection (a) (regardless of any com-
pensation, reimbursement, or other consideration ex-
changed or incidental economic benefit gained in the 
course of planning, operating, or supervising the flight), 
if the flight is— 
‘‘(1) conducted for instructional or educational 
purposes; and 
‘‘(2) operated or supervised by a member of a 
community-based organization recognized pursuant 
to subsection (e). 
‘‘(c) STATUTORY CONSTRUCTION.—Nothing in this 
section may be construed to limit the authority of the Ad-
ministrator to pursue enforcement action against persons 
operating model aircraft who endanger the safety of the 
national airspace system. 
‘‘(d) 
COMMUNITY-BASED
ORGANIZATION
DE-
FINED.—In this section, the term ‘community-based orga-
nization’ means an entity that— 
‘‘(1) is described in section 501(c)(3) of the In-
ternal Revenue Code of 1986; 
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‘‘(2) is exempt from tax under section 501(a) of 
the Internal Revenue Code of 1986; 
‘‘(3) the mission of which is demonstrably the 
furtherance of model aviation; 
‘‘(4) provides a comprehensive set of safety 
guidelines for all aspects of model aviation address-
ing the assembly and operation of model aircraft and 
that emphasize safe aeromodeling operations within 
the national airspace system and the protection and 
safety of individuals and property on the ground; 
‘‘(5) provides programming and support for any 
local charter organizations, affiliates, or clubs; and 
‘‘(6) provides assistance and support in the de-
velopment and operation of locally designated model 
aircraft flying sites. 
‘‘(e) RECOGNITION OF COMMUNITY-BASED ORGANI-
ZATIONS.—Not later than 180 days after the date of en-
actment of this section, the Administrator shall establish, 
and make available to the public, a process for recognizing 
community-based organizations that meet the eligibility 
criteria under subsection (d). 
‘‘§ 45510. Carriage of property for compensation or 
hire 
‘‘(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this section, the Secretary of Trans-
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portation shall issue a final rule authorizing the carriage 
of property by operators of small unmanned aircraft sys-
tems for compensation or hire within the United States. 
‘‘(b) CONTENTS.—The final rule required under sub-
section (a) shall provide for the following: 
‘‘(1) SMALL UAS AIR CARRIER CERTIFICATE.— 
The Administrator of the Federal Aviation Adminis-
tration, at the direction of the Secretary, shall estab-
lish a small UAS air carrier certificate for persons 
that undertake directly, or by lease or other arrange-
ment, the operation of small unmanned aircraft sys-
tems to carry property in air transportation, includ-
ing commercial fleet operations with highly auto-
mated unmanned aircraft systems. The requirements 
to obtain a small UAS air carrier certificate shall— 
‘‘(A) account for the unique characteristics 
of highly automated small unmanned aircraft 
systems; and 
‘‘(B) include only those obligations nec-
essary for the safe operation of small unmanned 
aircraft systems. 
‘‘(2) SMALL UAS AIR CARRIER CERTIFICATION 
PROCESS.—The Administrator, at the direction of 
the Secretary, shall establish a process for the 
issuance of a small UAS air carrier certificate de-
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scribed in paragraph (1) that is streamlined, simple, 
performance-based, and risk-based. Such certifi-
cation process shall consider— 
‘‘(A) safety and the mitigation of oper-
ational risks from highly automated small un-
manned aircraft systems to the safety of other 
aircraft, and persons and property on the 
ground; 
‘‘(B) the safety and reliability of highly 
automated small unmanned aircraft system de-
sign, including technological capabilities and 
operational limitations to mitigate such risks; 
and 
‘‘(C) the competencies and compliance pro-
grams of manufacturers, operators, and compa-
nies that both manufacture and operate small 
unmanned aircraft systems and components. 
‘‘(3) SMALL
UAS
AIR
CARRIER
CLASSIFICA-
TION.—The Secretary shall develop a classification 
system for small unmanned aircraft systems air car-
riers to establish economic authority for the carriage 
of property by small unmanned aircraft systems for 
compensation or hire. Such classification shall only 
require— 
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