83 FR 18734 - Notification to UAS Operators Proposing To Engage in Air Transportation

DEPARTMENT OF TRANSPORTATION
Office of the Secretary

Federal Register Volume 83, Issue 83 (April 30, 2018)

Page Range		18734-18735
FR Document		2018-09057

This document sets forth the procedure to seek an air taxi operator exemption to hold economic authority from the Department of Transportation (DOT or Department) for companies proposing to engage in certain air transportation operations with unmanned aircraft systems (UAS).

Federal Register, Volume 83 Issue 83 (Monday, April 30, 2018)

[Federal Register Volume 83, Number 83 (Monday, April 30, 2018)]
[Rules and Regulations]
[Pages 18734-18735]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09057]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 205 and 298


Notification to UAS Operators Proposing To Engage in Air 
Transportation

AGENCY: Office of the Secretary (OST), Department of Transportation 
(DOT).

ACTION: Notification of procedures.

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SUMMARY: This document sets forth the procedure to seek an air taxi 
operator exemption to hold economic authority from the Department of 
Transportation (DOT or Department) for companies proposing to engage in 
certain air transportation operations with unmanned aircraft systems 
(UAS).

DATES: April 30, 2018.

FOR FURTHER INFORMATION CONTACT: Lauralyn Remo, Chief, Air Carrier 
Fitness Division (202) 366-5347, 1200 New Jersey Ave. SE, Washington, 
DC 20590.

SUPPLEMENTARY INFORMATION: In order to engage directly or indirectly in 
air transportation,\1\ a citizen of the United

[[Page 18735]]

States \2\ is required to hold economic authority from the Department 
pursuant to 49 U.S.C. 41101, either in the form of a ``certificate of 
public convenience and necessity'' or in the form of an exemption from 
the certificate requirement. This authority is separate and distinct 
from any safety authority required by the Federal Aviation 
Administration (FAA).
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    \1\ ``Air transportation'' means foreign air transportation, 
interstate air transportation, or the transportation of mail by 
aircraft. Interstate air transportation includes the transportation 
of property by aircraft for compensation across state, 
international, or U.S. territorial boundaries, or wholly within a 
U.S. territory or the District of Columbia, or between islands in 
the State of Hawaii; or the transportation of more than a de minimis 
volume of property moving as part of a continuous journey when any 
portion of the journey is conducted by aircraft. The assessment of 
whether property transported wholly within one state is more than a 
de minimis amount or is part of a continuous journey thereby 
constituting ``air transportation'' is specific to the facts and 
circumstances of each operation. 49 U.S.C. 40102(a)(5) and 14 CFR 
298.2.
    \2\ A ``citizen of the United States'' includes a corporation 
organized in the United States that (1) meets certain specified 
standards regarding the citizenship of its president, officers and 
directors, and holders of its voting interest and (2) is under the 
actual control of citizens of the United States. 49 U.S.C. 
40102(a)(15).
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    Companies proposing to operate UAS to engage in air transportation, 
including the delivery of goods for compensation, must first obtain 
certificate or exemption authority from the Department prior to 
engaging in the air transportation. The Department intends to use its 
existing regulatory procedures for processing UAS operators' requests 
for economic authority. The Department's regulation in 14 CFR part 298 
(part 298) provides an exemption to air taxi operators from the 
certificate requirements of 49 U.S.C. 41101, provided that, among other 
things, the air carrier is a citizen of the United States as defined in 
49 U.S.C. 40102(a)(15), maintains liability insurance required by part 
205 of our rules (14 CFR part 205), and registers with the 
Department.\3\ The exemption authority conferred by part 298 is not 
available to air carriers that operate ``large'' aircraft.\4\ For UAS 
operators looking to transport goods for compensation, an exemption 
under part 298 is an appropriate form of economic authority. The 
Department will consider whether granting the exemption is appropriate 
based on the specific facts and circumstances of each proposed 
operation.
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    \3\ See 14 CFR 298.3, 298.11, and 298.24.
    \4\ Large aircraft means any aircraft originally designed to 
have a maximum passenger capacity of more than 60 seats or a maximum 
payload capacity of more than 18,000 pounds (See 14 CFR 298.2).
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    To become an air taxi operator, operators must submit a 
registration application (OST Form 4507) and a current aircraft 
liability insurance certificate (OST Form 6410).\5\ A stamped OST Form 
4507 with an effective date will be sent to the operator as 
confirmation of its approved air taxi registration with the Department. 
Initial registrations must be mailed along with the required filing 
fee.\6\ Air taxis located in the State of Alaska must submit their OST 
Form 4507 and OST Form 6410 to Federal Aviation Administration, Alaskan 
Regional Headquarters, AAL-231, 222 West 7th Ave., Box 14, Anchorage, 
Alaska 99513. All other air taxis must submit their OST Form 4507 and 
OST Form 6410 to Federal Aviation Administration, AFS-200, Rm. 831, 800 
Independence Ave. SW, Washington, DC 20591. Amendments may be filed 
electronically at [email protected]. Additional instruction 
material concerning air taxi registration can also be found in the 
FAA's air taxi guidance handbook, ``How to Become an On-Demand Air 
Carrier Operator.''
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    \5\ Copies of both forms can be found at: https://www.faa.gov/about/office_org/headquarters_offices/avs/offices/afx/afs/afs200/afs260/exemptions/.
    \6\ Filing fee information is available at the above link and on 
OST Form 4507.

    Signed in Washington, DC, on April 24, 2018.
Joel Szabat,
Deputy Assistant Secretary for Aviation and International Affairs.
[FR Doc. 2018-09057 Filed 4-27-18; 8:45 am]
 BILLING CODE 4910-9X-P

Federal Register / Vol. 83, No. 83 / Monday, April 30, 2018 / Rules and Regulations 18735

States 2 is required to hold economic certificate (OST Form 6410).5 A adopted the required floodplain
authority from the Department pursuant stamped OST Form 4507 with an management measures prior to the
to 49 U.S.C. 41101, either in the form of effective date will be sent to the effective suspension date given in this
a ‘‘certificate of public convenience and operator as confirmation of its approved rule, the suspension will not occur and
necessity’’ or in the form of an air taxi registration with the a notice of this will be provided by
exemption from the certificate Department. Initial registrations must be publication in the Federal Register on a
requirement. This authority is separate mailed along with the required filing subsequent date. Also, information
and distinct from any safety authority fee.6 Air taxis located in the State of identifying the current participation
required by the Federal Aviation Alaska must submit their OST Form status of a community can be obtained
Administration (FAA). 4507 and OST Form 6410 to Federal from FEMA’s Community Status Book
Companies proposing to operate UAS Aviation Administration, Alaskan (CSB). The CSB is available at https://
to engage in air transportation, Regional Headquarters, AAL–231, 222 www.fema.gov/national-flood-
including the delivery of goods for West 7th Ave., Box 14, Anchorage, insurance-program-community-status-
compensation, must first obtain Alaska 99513. All other air taxis must book.
certificate or exemption authority from submit their OST Form 4507 and OST DATES: The effective date of each
the Department prior to engaging in the Form 6410 to Federal Aviation community’s scheduled suspension is
air transportation. The Department Administration, AFS–200, Rm. 831, 800 the third date (‘‘Susp.’’) listed in the
intends to use its existing regulatory Independence Ave. SW, Washington, third column of the following tables.
procedures for processing UAS DC 20591. Amendments may be filed FOR FURTHER INFORMATION CONTACT: If
operators’ requests for economic electronically at AFS-260-Insurance@ you want to determine whether a
authority. The Department’s regulation faa.gov. Additional instruction material particular community was suspended
in 14 CFR part 298 (part 298) provides concerning air taxi registration can also on the suspension date or for further
an exemption to air taxi operators from be found in the FAA’s air taxi guidance information, contact Adrienne L.
the certificate requirements of 49 U.S.C. handbook, ‘‘How to Become an On- Sheldon, PE, CFM, Federal Insurance
41101, provided that, among other Demand Air Carrier Operator.’’ and Mitigation Administration, Federal
things, the air carrier is a citizen of the Signed in Washington, DC, on April 24, Emergency Management Agency, 400 C
United States as defined in 49 U.S.C. 2018. Street SW, Washington, DC 20472, (202)
40102(a)(15), maintains liability Joel Szabat, 212–3966.
insurance required by part 205 of our Deputy Assistant Secretary for Aviation and SUPPLEMENTARY INFORMATION: The NFIP
rules (14 CFR part 205), and registers International Affairs. enables property owners to purchase
with the Department.3 The exemption [FR Doc. 2018–09057 Filed 4–27–18; 8:45 am] Federal flood insurance that is not
authority conferred by part 298 is not BILLING CODE 4910–9X–P otherwise generally available from
available to air carriers that operate private insurers. In return, communities
‘‘large’’ aircraft.4 For UAS operators agree to adopt and administer local
looking to transport goods for DEPARTMENT OF HOMELAND floodplain management measures aimed
compensation, an exemption under part SECURITY at protecting lives and new construction
298 is an appropriate form of economic from future flooding. Section 1315 of
authority. The Department will consider Federal Emergency Management the National Flood Insurance Act of
whether granting the exemption is Agency 1968, as amended, 42 U.S.C. 4022,
appropriate based on the specific facts prohibits the sale of NFIP flood
and circumstances of each proposed 44 CFR Part 64 insurance unless an appropriate public
operation. body adopts adequate floodplain
[Docket ID FEMA–2018–0002; Internal management measures with effective
To become an air taxi operator, Agency Docket No. FEMA–8527]
operators must submit a registration enforcement measures. The
application (OST Form 4507) and a Suspension of Community Eligibility communities listed in this document no
current aircraft liability insurance longer meet that statutory requirement
AGENCY: Federal Emergency for compliance with program
Management Agency, DHS. regulations, 44 CFR part 59.
international, or U.S. territorial boundaries, or
wholly within a U.S. territory or the District of ACTION: Final rule. Accordingly, the communities will be
Columbia, or between islands in the State of suspended on the effective date in the
Hawaii; or the transportation of more than a de SUMMARY: This rule identifies third column. As of that date, flood
minimis volume of property moving as part of a communities where the sale of flood
continuous journey when any portion of the
insurance will no longer be available in
journey is conducted by aircraft. The assessment of insurance has been authorized under the community. We recognize that some
whether property transported wholly within one the National Flood Insurance Program of these communities may adopt and
state is more than a de minimis amount or is part (NFIP) that are scheduled for submit the required documentation of
of a continuous journey thereby constituting ‘‘air suspension on the effective dates listed
transportation’’ is specific to the facts and
legally enforceable floodplain
circumstances of each operation. 49 U.S.C. within this rule because of management measures after this rule is
40102(a)(5) and 14 CFR 298.2. noncompliance with the floodplain published but prior to the actual
2 A ‘‘citizen of the United States’’ includes a management requirements of the suspension date. These communities
corporation organized in the United States that (1) program. If the Federal Emergency will not be suspended and will continue
meets certain specified standards regarding the
citizenship of its president, officers and directors,
Management Agency (FEMA) receives to be eligible for the sale of NFIP flood
sradovich on DSK3GMQ082PROD with RULES

and holders of its voting interest and (2) is under documentation that the community has insurance. A notice withdrawing the
the actual control of citizens of the United States. suspension of such communities will be
49 U.S.C. 40102(a)(15). 5 Copies of both forms can be found at: https://
published in the Federal Register.
3 See 14 CFR 298.3, 298.11, and 298.24. www.faa.gov/about/office_org/headquarters_ In addition, FEMA publishes a Flood
4 Large aircraft means any aircraft originally offices/avs/offices/afx/afs/afs200/afs260/
designed to have a maximum passenger capacity of exemptions/. Insurance Rate Map (FIRM) that
more than 60 seats or a maximum payload capacity 6 Filing fee information is available at the above identifies the Special Flood Hazard
of more than 18,000 pounds (See 14 CFR 298.2). link and on OST Form 4507. Areas (SFHAs) in these communities.

VerDate Sep<11>2014 17:01 Apr 27, 2018 Jkt 244001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\30APR1.SGM 30APR1

Document Created: 2018-04-28 01:03:53
Document Modified: 2018-04-28 01:03:53

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Notification of procedures.
Dates		April 30, 2018.
Contact		Lauralyn Remo, Chief, Air Carrier Fitness Division (202) 366-5347, 1200 New Jersey Ave. SE, Washington, DC 20590.
FR Citation		83 FR 18734
CFR Citation		14 CFR 205 14 CFR 298

83 FR 18734 - Notification to UAS Operators Proposing To Engage in Air Transportation

DEPARTMENT OF TRANSPORTATIONOffice of the Secretary

Federal Register Volume 83, Issue 83 (April 30, 2018)

DEPARTMENT OF TRANSPORTATION
Office of the Secretary