FAA Ruling Jeopardizes Future Of America’s Commercial UAS Industry

In a press release issued by NEXA Capital Partners, LLC, they expressed concern over how the Federal Aviation Administration (FAA) is handling the commercial application of unmanned aerial systems (UAS) in the United States. They state that the FAA’s recent publication of an “Interpretation of the Special Rule on Model Aircraft” poses a significant risk to the UAS industry.

Their view is that the FAA should be developing a joint approach to commercially-focused UAS regulations, rather than unilaterally planning to prohibit any form of UAS use except for line-of-sight hobbyists flying below 400 feet. They say this interpretation, made without industry consultation, furthers FAA’s agenda of limiting advancements in commercial UAS operations and that companies, entrepreneurs, state agencies, first responders and universities looking to develop and prove UAS technologies and services will suffer.

There is now a global race for markets. The opportunity for America to create jobs, economic development, and global market leadership will be irreparably harmed.

“This rulemaking, if it remains unchallenged, will create a mandatory keyhole through which the entire commercial UAV and UAS sector will be forced to pass, and the FAA will hold the exclusive key,” said Michael J. Dyment, General Partner, UAS America PPP Fund.

NEXA Capital Partners make the point that the key problems with the recent FAA Interpretive Rule filing are as follows:

• The FAA’s plan to formalize regulation through denial of commercial use of UAS could become law.
• The FAA has incorrectly interpreted the language and intent of the 2012 Modernization & Reform Act   related to UAS regulations. Instead of adhering to the statute requiring new rules to be made, the FAA has declared that the 2012 Act imposes all existing regulations upon UASs, leaving total uncertainty and an apparent outright prohibition on the commercial development or use of UAS technologies without specific prior FAA “approval.”
• In typical fashion, FAA’s “Interpretation of the Special Rule on Model Aircraft” is attempting to constrain all UAS development activity, such that commercialization of unmanned technologies will be stymied.

Factors or consequences include:

• All development and testing of “non-hobbyist’ UAS henceforth will require prior FAA approval.
• Places onerous new restrictions on landowner activities, including research and education.
• For the first time, grants FAA jurisdiction over airspace under 500 feet everywhere, not just airports.
• Safety interpretation lacks differentiation between FPV impulse hobbyists and sophisticated commercial operators using the latest control and communications infrastructure.
• Prohibition on FPV operations or second person VLOS reliance premature and/or too restrictive.
• New definitions of ‘Aircraft’ and ‘Model Aircraft’ are overbroad and unreasonable.

NEXA Capital Partners and the UAS America PPP Fund are partnering to lead a legal challenge to the FAA’s “Interpretation of the Special Rule on Model Aircraft.” Together, and with the assistance of other industry participants (including, but not limited to, private UAS companies, associations/organizations, academia, state and local governments, and drone users) they are guiding development of a “Petition for Review” to be filed in the federal courts.

Time is of the essence. Legal action must commence by August 22, 2014. Contact NEXA for additional information.

FMI: www.nexacapital.com,  www.UASPPPfund.com