The emerging regulatory landscape for unmanned aircraft systems

The emerging regulatory landscape for unmanned aircraft systems Proposed requirements in the EU are likely to have a global impact. White paper Abstract This white paper provides an overview of the current state of global regulations for unmanned aircraft systems (UAS) and offers a detailed look at the EASA s proposal for common rules for UAS. The paper begins with information on the recent and anticipated growth of their use, and illustrates the various safety challenges emerging from that growth. The paper then discusses the specifics of the EASA s proposal. The white paper concludes with the likely impact of future regulations on manufacturers of UAS and information on how TÜV SÜD can assist manufacturers in achieving compliance with current and emerging requirements. TÜV SÜD

Contents INTRODUCTION 3 THE PROPOSED REGULATORY FRAMEWORK 5 A SYSTEM OF CATEGORISATION 6 ADOPTION ROADMAP 8 HOW TÜV SÜD SUPPORTS UAS MANUFACTURERS 9 About the TÜV SÜD experts Asli Solmaz-Kaiser Vice President, Global Head of ENE (Electrical and Electronics) TÜV SÜD Prior to joining TÜV SÜD in 2014, Asli Solmaz-Kaiser served in various senior business development positions at Underwriters Laboratories. She holds a BA degree in Business Administration from Istanbul University and an MBA degree from the University of Mannheim. Ms Solmaz-Kaiser can be reached at Asli.Solmaz-Kaiser@tuev-sued.de. Robert Ziegler Senior Product Specialist TÜV SÜD Robert Ziegler specialises in the safety of toys and other childcare articles. He holds a degree in precision engineering/medical technology from the Fachhochschule München (Munich University of Applied Sciences). Mr Ziegler can be reached at Robert.Ziegler@ tuev-sued.de. 2 The emerging regulatory landscape for unmanned aircraft systems TÜV SÜD

Introduction Unmanned aircraft systems have taken off Although unmanned aircraft systems (UAS, or more commonly known as drones) have been used for years in military and public safety applications, their use by commercial enterprises and consumers is expanding rapidly. Some studies estimate a global UAS market of more than $5 billion (USD) by the year 2020, up from just over $15 million in 2014 1. In the run-up to the 2015 holiday shopping season alone, it was expected that sales of UAS would top 700,000 units just in the U.S. 2 The anticipated dramatic growth in the use of UAS for commercial, industrial, scientific and recreational purposes has brought increased attention to the need for regulations regarding their operation as well as requirements and standards related What are UAS? to their safety. Until recently, only a handful of countries, including Germany, Italy and Australia, had regulations in place applicable to UAS. But, in December 2015, the U.S. Federal Aviation Administration (FAA) launched a registration system for operators of UAS up to 55 pounds (25kg) in weight. Of even greater potential consequence is a proposal issued in 2015 by the European Aviation Safety Agency (EASA) that sets forth a set of common rules regarding the classification and operation of UAS. Although the EASA proposal is only that, an Agency proposal, it is likely to have significant influence on the Commission of the European Union (EU) as it works over the coming years to develop an EU-wide UAS regulatory scheme. The EASA proposal may also serve as a framework for the development of a more robust regulatory structure in other countries as the number of UAS increases globally. Some studies estimate a global UAS market of more than $5 billion (USD) by the year 2020, up from just over $15 million in 2014 1. Although the term drone has been in use for nearly 100 years, UAS today are typically defined as small aircraft that carry no human passengers and that operate without direction from an on-board pilot. In current usage, UAS covers everything from sophisticated aircraft capable of travelling hundreds or thousands of miles in support of security or military operations to small toys intended for recreational use by children and hobbyists. Why do UAS require regulatory oversight? The commercial, industrial and scientific applications for UAS are expanding exponentially, elevating concerns about the safety of the devices as well as their operation. As a result of these and other concerns, implementing requirements that help to ensure the safety and security of UAS and their operation is expected to be the focus of future regulatory and standards development activities. CURRENT EXAMPLES OF UAS USE INCLUDE: Precision agriculture Infrastructure inspection Wind energy monitoring Pipeline and power inspection Highway monitoring Natural resource monitoring Environmental compliance Atmospheric research Wildlife research and protection Disaster relief Media and entertainment Sporting events 3 TÜV SÜD The emerging regulatory landscape for unmanned aircraft systems 3

SPECIFIC CONCERNS RELATED TO UAS SAFETY AND OPERATION Flight safety Public safety Device safety Other safety considerations Privacy concerns As UAS numbers increase, so too do concerns about the potential risks posed to traditional aviation traffic including commercial and private aircraft. UAS incursions into standard flight paths could have drastic consequences for both airline passengers and civilians on the ground. Even when flying within prescribed limits and outside of manned aircraft flight paths, UAS can accidentally crash in densely populated areas, resulting in property damage and/or personal injury. To operate, UAS require an on-board power source (typically a lithium-ion battery) that must be protected against environmental conditions and potential flight hazards such as a sudden impact or crash. UAS are also equipped with fast-moving blades or propellers that could lead to operator injury. UAS intended for use by children may include plastic parts containing potentially harmful chemicals or small parts that, if removed from a device, could be easily swallowed and result in choking. UAS equipped with cameras may unintentionally violate the privacy rights of others. 4 The emerging regulatory landscape for unmanned aircraft systems TÜV SÜD

The proposed regulatory framework To date, UAS regulations have varied from country to country, but with a primary focus on UAS operations. Countries including the United Kingdom, Australia and Canada have regulations that stipulate weight limits, flight altitude ceilings, and line-of-site operation, as well as restrictions regarding UAS use in densely populated areas. And, as previously noted, the U.S. now requires operators of certain UAS to register with the FAA. The current EU scenario In the EU, current Community-wide regulations applicable to manned aircraft include UAS above 150kg (about 330 pounds). However, the regulation of UAS under that weight has been left to individual EU Member States. In Germany, for example, remotely piloted aircraft systems (RPAS) are regulated under the provisions of that country s aviation regulations as amended in 2012. Accordingly, UAS may be operated within visual line of sight (VLOS) of the operator if their maximum weight does not exceed 25kg (about 55 pounds). UAS greater than 25kg in weight may be operated in segregated airspace under certain circumstances, but only with receipt of a permit from the responsible national authorities. UAS with a weight of less than 5KG (about 11 pounds) and intended for use for private sport activities and recreational purposes are not currently regulated. However, for TÜV SÜD certification, UAS intended as toys must be clearly intended for use by children under the age of 14, and cannot incorporate, or provide support for, video, photo or sound recording capabilities. By leaving to individual EU Member States the regulation of UAS with a maximum weight of 150kg, the current EU approach has resulted in a patchwork of regulations, creating challenges for UAS manufacturers seeking access to the entire EU market. At the same time, the development and deployment of new UAS technologies has placed additional burden on national regulators attempting to ensure that their regulations are keeping pace with these advancements. These factors led the EU Commission to request the assistance of the EASA in developing a UAS regulatory framework that could be applied throughout the EU. In response to this request, the EASA published in July 2015 an advance notice of proposed amendment (A-NPA) to the EU s existing aviation regulations (Regulation (EC) No 216/2008), applicable to the operation of UAS regardless of their weight. Following the release of A-NPA 2015-10 4, the EASA then launched a consultative process with stakeholders and other interested parties on its proposed framework, ultimately publishing a formal Technical Opinion 5 in mid- December 2015 that clarifies certain provisions in A-NPA 2015-10. TÜV SÜD The emerging regulatory landscape for unmanned aircraft systems 5

A system of categorisation A-NPA 2015-10 and EASA s Technical Opinion are expected to provide the foundation for the development in 2016 and 2017 of new UAS rules applicable throughout the EU. As such, understanding of the key elements of the proposed framework can help UAS manufacturers, retailers and operators anticipate the approach of the final EU UAS regulations, and help them plan for achieving compliance with those requirements once they have been established. A-NPA 2015-10 proposes a regulatory approach to UAS that is primarily based on the degree of risk posed by a device s intended use. Rather than creating a single set of requirements applicable to all UAS, EASA s proposal divides UAS and their operation into one of three separate categories, Open, Specific and Certified, and provides specific proposals regarding regulation for each category, as discussed in the following sections. Open category: low risk This category will be applied to UAS where the risk to people on the ground and other aircraft is minimal, and where risk can be mitigated through specific product requirements and operational limitations. Specific EASA proposals include: Maximum weight: UAS assigned to the Open category must not exceed a maximum weight of 25kg. Zone requirements: The EASA proposal calls for the establishment of different limitations for UAS depending on a particular zone of operation, such as densely populated areas, or proximity to airports or critical infrastructure. Minimum distances from people on the ground: UAS in the Open category posing the highest risk must maintain a minimum distance of 50 metres (about 164 feet) from uninvolved persons on the ground, and are banned from flights over groups of more than 12 people. Separation from other airspace users: The operation of UAS in the Open category must be within the visual line of sight (VLOS) of the operator to ensure adequate separation from other users. In addition, Open category UAS must incorporate systems to ensure that they cannot operate at a height exceeding 150 metres (about 492 feet) above the ground or water surface. Pilot competence: For Open category UAS that are not designed to automatically limit performance to established standards, evidence of pilot competence will be required for flights greater than 50 metres (about 165 feet) above the ground. Additional subcategories: The Agency proposal recommends establishing a harmless subcategory of UAS under the Open category, applicable to very small devices and toys that are unlikely to cause serious injuries or significant damage. UAS in this subcategory would be subject only to market regulations and local restrictions. Additional subcategories are also recommended to allow for a more flexible regulatory approach based on actual risk. Specific category: medium risk For UAS whose design or anticipated operation is expected to exceed the characteristics or limits stipulated for the Open category, the requirements of the Specific category will be applied. Specific EASA proposals include: Specific operation risk assessment: Operators of Specific category UAS must conduct a specific operation risk assessment (SORA) accounting for all potential risk associated with their intended operation, and their potential effects and likelihood. Operators will be required to submit their SORA, along with an operations manual, to a designated authority or other qualified entity (QE) for review as part of the operation authorisation requirement. 6 The emerging regulatory landscape for unmanned aircraft systems TÜV SÜD

Standard scenarios and mitigations: The Agency proposal calls on industry and standardisation bodies to develop standards and other documents that address the risks associated with common UAS scenarios assigned to the Specific category. Special provisions for model aircraft: The planned extension of current regulations will impact the recreational operation of model aircraft by hobbyists and model flying associations. The EASA proposal recommends grandfathering these specific aircraft under the Specific category. Operation authorisation requirement: As noted above, operators of UAS in the Specific category will be required to obtain an operation authorisation (OA) issued either by the competent authority within the Member State of the operator or an approved QE. Operations consistent with OA: Operators that have been issued an OA to operate a UAS in the Specific category are required to comply with the limitations and conditions defined in the OA. Certified category: higher risk The final category, the Certified category, will require certification to engage in flight operations that pose risks similar to those presented by normal manned aviation operations. Multiple certificates for UAS operation and for the UAS itself may be required. EASA proposed requirements applicable to UAS in the Certified category include: Remote operator certificate: Operators involved in the piloting of UAS in the Certified category must obtain a remote operators certificate (ROC). The qualifications and requirements for an ROC will be defined in the implementing regulations to be developed by the EU Commission. Certificate of airworthiness: UAS assigned to the Certified category must be certified for their airworthiness and their compliance with environmental standards and noise requirements, similar to the requirements established for conventional manned aircraft. Other equipment approvals: Parts or supplemental equipment used in conjunction with UAS in the Certified category, such as ground stations or other accessories, may be approved independently from the UAS itself. Certification specifications: Specific certification specifications (CSs) regarding safety and environmental protection objectives will be developed to address a broad range of UAS configurations, such as fixed wing, rotorcrafts, airships and balloons. Other proposed requirements In addition to the category-specific requirements referenced above, the EASA proposal also recommends adoption of a number of additional requirements. These include the establishment of geographic zones where UAS operations are not allowed without prior authorisation, as well as mandatory UAS functionality that identifies geographic limitations. The Agency has also called for functionality that allows individual UAS to be identified. Most important, the EASA proposal calls for the use of qualified entities (QEs) to work on behalf of the EASA or national air authorities to issue certifications mandated under any new regulations. Such QEs would be accredited by the Agency or national air authorities using a risk-based approach, and would be subject to periodic audits to ensure continued compliance with accrediting standards. The use of QEs should help to facilitate the process of obtaining the necessary approvals under the final UAS regulatory scheme. TÜV SÜD The emerging regulatory landscape for unmanned aircraft systems 7

Adoption roadmap The EASA proposal includes a roadmap for the development, adoption and implementation of its regulatory framework for UAS. According to the terms of the EASA proposal, implementing regulations for UAS in the Open category are expected to be published sometime in 2016, with regulations for UAS in the Specified category slated for release in the first part of 2017. Of course, the development of regulations is subject to the EU s regulatory process, and any regulations introduced are also likely to include transition timetables that will provide manufacturers with some flexibility in achieving compliance. The Agency s proposal also calls on standards development agencies to begin the process of drafting standards that address various design and operational aspects unique to UAS. Specific standards proposed for development would address information exchange interfaces, geographical limitation systems, identification and registration systems, pilot competence, training and documentation, and supplementary equipment such as ground control stations, detect and avoid systems, and recovery systems. Finally, the EASA proposal emphasises the importance of globally harmonised rules for the design and operation of UAS of all types. The proposal specifically references the work of the International Civil Aviation Organisation (ICAO) and the Joint Authorities for Rulemaking on Unmanned Systems (JARUS) as essential in harmonising UAS requirements globally and in helping to facilitate access to markets around the world. 2016 Open category regulations published Q1 2017 Specified category regulations published Beyond 2017 Globally harmonised rules for the design and operation of UAS of all types Transition period for manufacturers to achieve compliance > Standards development agencies begin drafting standards > 2016 2017 2018 8 The emerging regulatory landscape for unmanned aircraft systems TÜV SÜD

How TÜV SÜD supports UAS manufacturers As noted above, the process of developing and implementing regulations consistent with the EASA s proposal for UAS is expected to take place during 2016 and 2017. However, this timetable is subject to change, and any final regulations may include requirements not specified in the Agency s proposal. Further, the process of developing standards applicable to UAS has only recently begun, and final published standards are not likely to be available in the short term. Meanwhile, national regulations applicable to UAS such as those in Germany, France and Italy are still in effect. And UAS are also currently subject to all applicable EU directives and regulations, including the Directive on General Product Safety (2001/95/EC), the Toy Directive (2009/48/EC) and the Directive on Radio & Telecommunications Terminal Equipment (1995/5/EC), as well as CE marking requirements. In this dynamic and ever-changing regulatory environment, TÜV SÜD experts are closely monitoring regulatory and standards development efforts applicable to UAS in the EU and in other major jurisdictions around the world. As a global authority on regulations and testing requirements for a wide range of equipment and devices, we stand ready to assist manufacturers, suppliers and retailers in addressing existing and emerging regulations and standards requirements. And, with hundreds of technical experts in more than 30 countries on six continents, our extensive network makes TÜV SÜD an effective single source for manufacturers seeking worldwide access for their products. For further information about TÜV SÜD s UAS testing services, go to www.tuv-sud.com/cps or contact cps@tuv-sud.com. We stand ready to assist manufacturers, suppliers and retailers in addressing existing and emerging regulations and standards requirements. TÜV SÜD The emerging regulatory landscape for unmanned aircraft systems 9

GLOSSARY OF ACRONYMS A-NPA Advance Notice of Proposed Amendment CS Certification Specifications EASA European Aviation Safety Agency EU European Union FAA Federal Aviation Administration ICAO International Civil Aviation Organisation JARUS Joint Authorities for Rulemaking on Unmanned Systems OA Operation Authorisation QE Qualified Entity ROC Remote Operator Certificate RPAS Remotely Piloted Aircraft Systems SORA Specific Operation Risk Assessment UAS Unmanned Aircraft System VLOS Visual Line Of Sight FOOTNOTES [1] UAV Drone Market by Type (Fixed Wing, Rotary Blade, Nano, Hybrid), Application (Law Enforcement, Precision Agriculture, Media and Entertainment, Retail), & Geography (Americas, Europe, APAC, RoW) - Analysis and Forecast to 2020, published by Markets and Markets, October 2015. Abstract available at http://www.marketsandmarkets.com/ Market-Reports/commercial-drones-market-195137996.html (as of 29 January 2016). [2] Drone Registration Rules Are Announced by F.A.A, New York Times, December 15, 2015. Available at http://www.nytimes.com/2015/12/15/technology/drone-registrationrules-are-announced-by-faa.html?_r=0 (as of 11 January 2016). [3] Concept of Operations for Drones: A risk based approach to regulation of unmanned aircraft, a report produced by the European Aviation Safety Agency (EASA) (no date). Available at http://www.easa.europa.eu/system/files/dfu/204696_easa_concept_ drone_brochure_web.pdf (as of 11 January 2016). [4] Advance Notice of Proposed Amendment 2015-10: Introduction of a regulatory framework for the operation of drones, European Aviation Safety Agency, 31 July 2015. Available at https://easa.europa.eu/system/files/dfu/a-npa%202015-10.pdf (as of 11 January 2016). [5] Technical Opinion: Introduction of a regulatory framework for the operation of unmanned aircraft, European Aviation Safety Agency, 18 December 2015. Available at https://easa.europa.eu/system/files/dfu/introduction%20of%20a%20regulatory%20 framework%20for%20the%20operation%20of%20unmanned%20aircraft.pdf (as of 11 January 2016). COPYRIGHT NOTICE The information contained in this document represents the current view of TÜV SÜD on the issues discussed as of the date of publication. Because TÜV SÜD must respond to changing market conditions, it should not be interpreted to be a commitment on the part of TÜV SÜD, and TÜV SÜD cannot guarantee the accuracy of any information presented after the date of publication. This White Paper is for informational purposes only. TÜV SÜD makes no warranties, express, implied or statutory, as to the information in this document. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of TÜV SÜD. TÜV SÜD may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from TÜV SÜD, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property. ANY REPRODUCTION, ADAPTATION OR TRANSLATION OF THIS DOCUMENT WITHOUT PRIOR WRITTEN PERMISSION IS PROHIBITED, EXCEPT AS ALLOWED UNDER THE COPYRIGHT LAWS. TÜV SÜD Group 2016 All rights reserved - TÜV SÜD is a registered trademark of TÜV SÜD Group. DISCLAIMER All reasonable measures have been taken to ensure the quality, reliability, and accuracy of the information in the content. However, TÜV SÜD is not responsible for the third-party content contained in this newsletter. TÜV SÜD makes no warranties or representations, expressed or implied, as to the accuracy or completeness of information contained in this newsletter. This newsletter is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). Accordingly, the information in this newsletter is not intended to constitute consulting or professional advice or services. If you are seeking advice on any matters relating to information in this newsletter, you should where appropriate contact us directly with your specific query or seek advice from qualified professional people. The information contained in this newsletter may not be copied, quoted, or referred to in any other publication or materials without the prior written consent of TÜV SÜD. All rights reserved 2016 TÜV SÜD. 10 The emerging regulatory landscape for unmanned aircraft systems TÜV SÜD

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