during the comment period and development of the final rule. The
present value cost savings to FAA total $2.4 million at a three percent
discount rate and $1.8 million at a seven percent discount rate. The
annualized costs savings are almost $0.3 million at either a three
percent or seven percent discount rate.
    Additionally, part 107 allows individuals to request waivers from
certain provisions, including those prohibiting operations over people
and at night. This proposed rule, in concert with the proposed rule for
operations over people would create a cost savings for the FAA
resulting from a reduction of time expended by FAA personnel processing
waivers for these activities.\168\
---------------------------------------------------------------------------

    \168\ See the appendix of the Remote Identification of Unmanned
Aircraft Systems Preliminary Regulatory Impact Analysis for a
quantification of these cost savings.
---------------------------------------------------------------------------

4. Total Costs and Cost Savings
    The total costs of the proposed remote identification rule include
costs incurred by UAS owners, CBOs, UAS operators, UAS producers,
developers of remote identification means of compliance, candidates to
be Remote ID USS, and the FAA. In addition to the costs incurred by the
various entities impacted by the proposed rule, the FAA has a cost
savings from avoided aviation safety inspector costs due to a reduction
in hours expended on UAS investigations.
    Over the 10-year period of analysis, using the primary estimate
this proposed rule would result in present value costs of $584 million
at a three percent discount rate and $475 million at a seven percent
discount rate. These costs are partially offset by present value cost
savings of $2.5 million and $1.8 million at a three percent and seven
percent discount rate, respectively. As a result, the net present value
costs are $582 million at a three percent discount rate with annualized
net costs of $68 million. At a seven percent discount rate, the net
present value costs are $474 million with annualized net costs of $67
million.
    The following table presents a summary of the primary, low and high
estimates of the net costs of the proposed rule.

   Table 8a--Preliminary Estimates of Net Costs of Proposed Rule ($Millions) * Base Scenario--Primary Estimate
----------------------------------------------------------------------------------------------------------------
                                                      10-year                         10-year
            Affected entity/category               present value  Annualized (at   present value  Annualized (at
                                                      (at 3%)           3%)           (at 7%)           7%)
----------------------------------------------------------------------------------------------------------------
UAS Owners/Operators............................         $145.87          $17.10         $117.48          $16.73
Remote ID USS Subscription......................          241.72           28.34          191.74           27.30
UAS Producers (US and Foreign)..................          134.58           15.78          111.58           15.89
Developers of Remote ID Means of Compliance.....            2.85            0.33            2.36            0.34
Remote ID USS Memoranda of Agreement............            1.60           0.188            1.43          0.2038
Community Based Organizations...................            0.39            0.05            0.35            0.05
FAA Costs.......................................           56.96            6.68           50.33            7.17
                                                 ---------------------------------------------------------------
    Total Costs.................................          583.98           68.46          475.27           67.67
    Cost Savings................................          (2.45)          (0.29)          (1.82)          (0.26)
                                                 ---------------------------------------------------------------
        Net Costs...............................          581.52           68.17          473.46           67.41
----------------------------------------------------------------------------------------------------------------
* Table notes: Column totals may not sum due to rounding and parenthesis, ``( )'', around numbers to indicate
  savings.

            Table 8b--Preliminary Estimates of Net Costs of Proposed Rule ($Millions) * Low Scenario
----------------------------------------------------------------------------------------------------------------
                                                      10-year                         10-year
            Affected entity/category               present value  Annualized (at   present value  Annualized (at
                                                      (at 3%)           3%)           (at 7%)           7%)
----------------------------------------------------------------------------------------------------------------
UAS Owners/Operators............................         $140.99          $16.53         $113.64          $16.18
Remote ID USS Subscription......................          206.58           24.22          164.24           23.38
UAS Producers (US and Foreign)..................          116.53           13.66           97.25           13.85
Developers of Remote ID Means of Compliance.....            2.85            0.33            2.36            0.34
Remote ID USS Memoranda of Agreement............            1.60           0.188            1.43          0.2038
Community Based Organizations...................            0.39            0.05            0.35            0.05
FAA Costs.......................................           56.96            6.68           50.33            7.17
                                                 ---------------------------------------------------------------
    Total Costs.................................          525.91           61.65          429.61           61.17
    Cost Savings................................          (2.45)          (0.29)          (1.82)          (0.26)
                                                 ---------------------------------------------------------------
        Net Costs...............................          523.46           61.36          427.80           60.91
----------------------------------------------------------------------------------------------------------------
* Table notes: (i) Column totals may not sum due to rounding and parenthesis, ``( )'', around numbers to
  indicate savings. (ii) The low and high forecast scenarios are not symmetric around the base--please see the
  forecast report for more information. The FAA Aerospace Forecast Fiscal Years 2019-2039, available at https://www.faa.gov/data_research/aviation/aerospace_forecasts/media/FY2019-39_FAA_Aerospace_Forecast.pdf. The
  forecast provides a base (i.e., likely) with high (or optimistic) and low (or pessimistic) scenarios.

            Table 8c--Preliminary Estimates of Net Costs of Proposed Rule ($Millions) * High Scenario
----------------------------------------------------------------------------------------------------------------
                                                      10-year                         10-year
            Affected entity/category               present value  Annualized (at   present value  Annualized (at
                                                      (at 3%)           3%)           (at 7%)           7%)
----------------------------------------------------------------------------------------------------------------
UAS Owners/Operators............................         $159.32          $18.68         $127.87          $18.21
Remote ID USS Subscription......................          336.14           39.41          264.22           37.62
UAS Producers (US and Foreign)..................          181.51           21.28          148.26           21.11
Developers of Remote ID Means of Compliance.....            2.85            0.33            2.36            0.34
Remote ID USS Memoranda of Agreement............            1.60           0.188            1.43          0.2038
Community Based Organizations...................            0.39            0.05            0.35            0.05
FAA Costs.......................................           56.96            6.68           50.33            7.17
                                                 ---------------------------------------------------------------
    Total Costs.................................          738.78           86.61          594.81           84.69
    Cost Savings................................          (2.45)          (0.29)          (1.82)          (0.26)
                                                 ---------------------------------------------------------------
        Net Costs...............................          736.33           86.32          593.00           84.43
----------------------------------------------------------------------------------------------------------------
* Table notes: column totals may not sum due to rounding and parenthesis, ``()'', around numbers to indicate
  savings.

    The following table presents an itemized list of preliminary
estimates of costs and cost savings from this proposed rule.

          Table 9--Remote Identification Costs and Cost Savings
                               [$Millions]
------------------------------------------------------------------------
             Affected entity                   3% PV           7% PV
------------------------------------------------------------------------
UAS Owners/Operators:
    Registration--Recreational Flyers...          $1.070          $0.887
    Travel Expense*--Recreational Flyers         135.911         108.960
    Registration--Part 107..............           0.025           0.021
    Loss of UAS Use--Recreational Flyers           4.625           3.972
    Loss of UAS Use--Pt 107 Operators...           4.238           3.639
Community Based Organizations:
    Letters of Agreement Submission.....           0.389           0.354
USS Subscription Fee:
    Part 107............................          93.752          73.787
    Limited Recreational Flyers.........         147.969         117.954
UAS Producers:
    Equipage Cost.......................         105.325          84.891
    Declaration of Compliance...........          27.178          24.795
    Industry Consensus Standard--Remote            0.160           0.146
     ID.................................
    Industry Consensus Standard--Serial            0.000           0.000
     #..................................
    Labeling Requirement................           1.917           1.749
Developers of Remote Identification MoC:
    Industry Consensus Standard.........           1.230           1.083
    Developers of Remote ID MoC (Others)           1.620           1.276
Remote Identification USS:
    Cost to submit MoA with FAA.........           1.601           1.431
FAA Costs:
    Onboard USS Service Suppliers.......           2.179           1.913
    Accept/Not Accept MoC...............           0.144           0.115
    Accept/Not Accept Mfr DoC *.........           0.000           0.000
    Web Portal Update--Registration/               0.728           0.701
     Notification of Identification.....
    Approve/Disapprove Flying Field as             4.669           3.966
     an FAA-Recognized Identification
     Areas..............................
    Website for Means of Compliance/               2.294           2.000
     Declarations of Compliance.........
    Remote Identification USS Data                46.950          41.631
     Exchange...........................
                                         -------------------------------
        Total Costs.....................         583.975         475.271
Cost Savings: Reduced Hours FAA UAS              (2.453)         (1.815)
 Investigations.........................
                                         -------------------------------
    Total Cost Savings..................         (2.453)         (1.815)
                                         -------------------------------
    Net Costs...........................         581.522         473.456
                                         -------------------------------
    Annualized Net Costs................          68.172          67.409
------------------------------------------------------------------------
* Automated approval through FAA drone zone portal.
Note: Column totals may not sum due to rounding.

    The estimated costs are presented on an annual basis in the table
below.

                                           Table 10--Remote Identification Costs and Cost Savings--Years 1-10
                                                                       [$Millions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Costs by affected entity       Year 1     Year 2     Year 3     Year 4     Year 5     Year 6     Year 7     Year 8     Year 9    Year 10     Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Costs:
    UAS Owners (3% PV).........     $0.167    $15.818    $15.714    $24.420    $15.394    $15.247    $15.070    $14.867    $14.688    $14.483    $145.87
    UAS Owners (7% PV).........      0.161     14.656     14.018     20.968     12.724     12.130     11.541     10.961     10.424      9.894     117.48
    Community Based Org. (3%         0.282  .........  .........  .........      0.056  .........  .........  .........      0.050  .........       0.39
     PV).......................
    Community Based Org. (7%         0.272  .........  .........  .........      0.047  .........  .........  .........      0.036  .........       0.35
     PV).......................
    USS Subscription Fee (3%     .........     13.058     29.430     29.681     29.384     28.962     28.491     28.031     27.572     27.112     241.72
     PV).......................
    USS Subscription Fee (7%     .........     12.099     26.252     25.485     24.288     23.042     21.819     20.667     19.568     18.520     191.74
     PV).......................
    UAS Manufacturer (3% PV)...      0.000     39.446     16.244      8.366     12.709     14.362      9.066     11.955     13.038      9.396     134.58
    UAS Manufacturer (7% PV)...      0.000     36.550     14.489      7.182     10.505     11.426      6.943      8.814      9.253      6.418     111.58
    Developers of Remote ID MoC      0.589      0.215      0.226      0.236      0.245      0.253      0.261      0.268      0.275      0.280       2.85
     (3% PV)...................
    Developers of Remote ID MoC      0.567      0.200      0.202      0.203      0.203      0.202      0.200      0.198      0.195      0.192       2.36
     (7% PV)...................
    Remote ID USS (3% PV)......      0.900      0.087      0.085      0.082      0.080      0.078      0.075      0.073      0.071      0.069       1.60
    Remote ID USS (7% PV)......      0.867      0.081      0.076      0.071      0.066      0.062      0.058      0.054      0.050      0.047       1.43

    FAA (3% PV)................     28.694      3.298      3.202      3.109      3.990      2.930      2.845      2.762      3.545      2.590      56.96
    FAA (7% PV)................     27.619      3.055      2.856      2.669      3.297      2.331      2.178      2.036      2.515      1.769      50.33
                                ------------------------------------------------------------------------------------------------------------------------
        Total Costs--3% PV.....     30.632     71.922     64.901     65.894     61.858     61.832     55.809     57.957     59.239     53.930     583.98
        Total Costs--7% PV.....     29.485     66.641     57.892     56.578     51.130     49.193     42.740     42.730     42.041     36.840     475.27
                                ------------------------------------------------------------------------------------------------------------------------
        Costs Savings--3% PV...  .........  .........  .........  .........  .........    (0.520)    (0.505)    (0.490)    (0.476)    (0.462)    (2.453)
        Costs Savings--7% PV...  .........  .........  .........  .........  .........    (0.414)    (0.387)    (0.361)    (0.338)    (0.316)    (1.815)
                                ------------------------------------------------------------------------------------------------------------------------
        Net Costs--3% PV.......     30.632     71.922     64.901     65.894     61.858     61.312     55.304     57.467     58.763     53.468     581.52
        Net Costs--7% PV.......     29.485     66.641     57.892     56.578     51.130     48.779     42.354     42.368     41.703     36.524     473.46
--------------------------------------------------------------------------------------------------------------------------------------------------------
Table notes: PV = Present Value and ``( )'' = denotes savings.

    The key cost driver of the proposed rule is the USS subscription
fee, followed by travel expenses for a select group of recreational
flyers, and the cost of compliance for UAS producers. The present value
cost of USS subscription fees is $241.7 million at a three percent
discount rate and $191.7 million at a seven percent discount rate. The
annualized cost of USS subscription fees is $28.3 million at a three
percent and $27.3 million at a seven percent discount rate. This impact
represents over 41.4 percent of the total costs of the proposed rule.
The travel expense for a select group of recreational users represents
23.3 percent of the proposed rule's total costs, and costs to UAS
producers are 23.0 percent of the total costs.
    The FAA believes this cost impact is justified in order to reduce
the delay (by two years) in implementing for law enforcement, security
partners, the FAA, and airports to use remote ID information. The FAA
alternatively considered allowing three years beyond the producer
compliance date for owners and operators to comply with the remote
identification requirements of this proposed rule in the ``Alternatives
Considered'' section. This period of time coincides with the three-year
lifespan of a small UAS and would have prevented grounding or
replacement of UAS prior to the end of useful life. However, the FAA
determined that the three-year compliance period was less preferable,
because it prolonged safety and security risks to air traffic and
airports by delaying the ability of law enforcement personnel to
identify unauthorized UAS operations. To reduce the delay in
implementing remote identification, the operational compliance period
was reduced from three years to one year.\169\
---------------------------------------------------------------------------

    \169\ As previously discussed, the proposal does not preclude
early compliance for producers or operators to realize earlier
expanded operations and commercial opportunities. The FAA provides a
sensitivity analysis of costs for earlier developer and producer
compliance by the effective date of the final rule (60 days after
publication). This analysis shows that if Remote ID USS and UAS with
remote identification are available by the effective date of the
final rule (as proposed), then total net costs reduce by about 60-
70% and operations over people and at night would be enabled
beginning in the first year after publication.
---------------------------------------------------------------------------

    A potential offsetting benefit of the one-year operational
compliance period is that a portion of part 107 operators may be able
to immediately perform operations over people and operations at night
without a waiver once their UAS has remote identification. As many as
68.4 million operations over people and at night could be enabled by
the proposed shortening the of the operational compliance period.
Assuming that the flight time for each of these 68.4 million operations
lasts 30 minutes and the wage for a remote pilot is $12.09 per
operation, the economic benefit in terms of pilot wages alone is about
$827 million undiscounted (not present value).\170\
---------------------------------------------------------------------------

    \170\ https://www.payscale.com/research/US/Job=Drone_Pilot/Hourly_Rate.
---------------------------------------------------------------------------

5. Alternatives Considered
    The FAA considered both more and less costly alternatives as part
of the proposed rule. The alternatives and the FAA's reasons for
rejecting those alternatives are discussed below.
i. Alternative Compliance Periods--Producers
    The chosen compliance period to estimate producer costs is two
years beyond the effective date of the final rule. The FAA considered a
producer compliance period of one year, especially considering
potential retrofits, however this alternative was determined to be
impractical since no FAA-accepted means of compliance currently
available for producers to build to. Until an FAA-accepted means of
compliance exists, producers would not be able to submit a declaration
of compliance. Accordingly, the FAA believes it is practical for an
industry consensus standard to be developed that could be submitted for
acceptance as a means of compliance by the end of year 1 after the
effective date of the final rule, with an additional year for producers
to design, build, and test UAS that meet the standard.
    The two-year compliance period for producers is consistent with
information on timelines for available technology from the UAS-ID ARC
Report and expected availability of USS. The ARC found technologies
similar to planned Remote ID USS transmissions have a ``readiness for
implementation'' of one year or less. This means products would be
available for original equipment manufacturers within one year of the
requirements being known. This one-year period would start after the
availability of FAA-accepted means of compliance and Remote ID USS--the
FAA expects means of compliance and Remote ID USS availability to take
up to one year after the effective date of the final rule.
    At this time, the two-year producer compliance period appears
reasonable and has a technical basis. The FAA has not identified or
analyzed an alternative. The current proposal does not preclude earlier
producer compliance (in light of a potential economic incentive to
comply earlier). Likewise, this proposal would not preclude producer
compliance through retrofits within the two-year producer compliance
period or earlier, as long as retrofits use an FAA-accepted means of
compliance.
ii. Alternative Operational Compliance Period
    The FAA considered allowing three years beyond the producer
compliance date for owners and operators to comply with the remote
identification requirements of this proposed rule. This

period of time coincides with the three-year lifespan of a small UAS
and would have prevented grounding or replacement of UAS prior to end
of useful life. However, the FAA determined that the three-year
compliance period was less preferable since it prolonged safety and
security risks to air traffic and airports by delaying the ability of
law enforcement personnel to identify unauthorized UAS operations. In
addition, as previously discussed, some producers would be able to
retrofit UAS in the existing fleet and comply early. To reduce the
delay in implementing remote identification, the owner/operator
compliance period was reduced from three years to one year.
    The FAA analyzed the costs of allowing up to three years for
owners/operators to be in compliance and found this alternative
minimizes costs to owners/operators of existing UAS that could not be
retrofit, since on average the affected existing fleet of UAS could be
replaced at the end of useful life (three years). In addition, this
alternative is more likely to reduce uncertainty of adverse impacts to
producers with inventories of UAS produced before the compliance date
that would likely not meet the remote identification provisions of this
proposal, including with retrofits. Given the average three-year UAS
lifespan, the three-year operational compliance period would likely
assist producers in depleting existing non-compliant inventories with
reduced impact compared to the proposed one-year compliance period.
    Under this alternative, present value costs at a three percent
discount rate total $494.2 million with annualized costs of $57.9
million. The present value costs at a seven percent discount rate total
$394.4 million with annualized costs of $56.2 million. Present value
cost savings at a three percent discount rate total $2.45 million with
annualized cost savings of $0.29 million. At a seven percent discount
rate, present value costs savings total $1.82 million with annualized
cost savings of $0.26 million. As a result, present value net costs at
a three percent discount rate are $491.7 million with annualized net
costs of $57.7 million. At a seven percent discount rate, present value
net costs are $392.6 million with annualized net cost of $55.9 million.
The cost associated with this alternative are slightly less than the
proposal that assumes producers would be capable of retrofits within
one year of the effective date of the final rule.
iii. Requiring ADS-B Out
    The FAA could have proposed transponders or ADS-B Out for UAS as a
means to remotely identify those aircraft. The FAA does not propose the
use of transponders or ADS-B Out for remote identification for three
primary reasons. First, the use of these technologies would require
significant additional infrastructure, including radars and receivers,
to cover the lower altitudes where unmanned aircraft are expected to
primarily operate. Second, the FAA expects that, due to the volume of
unmanned aircraft operations projected, the additional radio frequency
signals would saturate the available spectrum and degrade the overall
cooperative surveillance system. Finally, transponders and ADS-B Out do
not provide any information about the location of control stations, as
these systems were designed for manned aircraft. For these reasons, the
FAA has determined that existing cooperative surveillance systems are
incapable of supporting UAS remote identification and is proposing a
new cooperative surveillance technology specifically for UAS.
iv. FAA Provided Remote Identification Services
    The proposed rule assumes that Remote ID USS would come forward to
offer remote identification services to indiviRequireduals operating
UAS in the airspace of the United States. The alternative would be for
the FAA to provide these services directly to operators of UAS instead
of providing them through a third-party provider. The FAA chose the
Remote ID alternative for several reasons. First, the LAANC service
model has been effective due to the success of public and private
sector partnerships in implementing LAANC and clear Congressional
approval of the model. Second, similar to LAANC USS, the FAA will not
provide payment for the development or operation of Remote ID USS
products or services. The FAA anticipates that the Remote ID USS would
recoup the costs of providing services either through the sale of
subscriptions for remote identification services, online advertising,
or ``value added'' services that can be purchased from the service
provider.
v. Not Allowing FAA-Recognized Identification Areas
    The FAA considered not allowing FAA-recognized identification
areas. If the proposed rule did not allow for these areas, operators of
UAS with no remote identification equipment would not be allowed to
operate unless the UAS were redesigned to have remote identification.
By identifying a defined location where operations of UAS without
remote identification would be occurring, the FAA-recognized
identification area itself becomes the form of identification. The
intent for allowing FAA-recognized identification areas is to minimize
the regulatory burden for operators of existing UAS used exclusively
for limited recreational operations that do not have remote
identification equipment, while still meeting the intent of the rule.
Assumptions
     Individuals want to operate UAS without remote
identification within FAA-recognized identification areas.
     Each individual owns two aircraft which are used for
limited recreational operations.
     These unmanned aircraft have a lifespan that extends
beyond the 10-year analysis period of the proposed rulemaking.
    Should the FAA not allow FAA-recognized identification areas for
the operation of UAS without remote identification, it is estimated
that as many as 400,000 UAS that are used for recreational flying would
be grounded at the end of year 3.
vi. Requiring All UAS To Be Standard Remote Identification UAS (Except
for UAS Without Remote Identification Operated at FAA-Recognized
Identification Areas)
    The preferred alternative allows operators of limited remote
identification UAS to operate at places other than FAA-recognized
identification areas. The FAA considered requiring all UAS to be
standard remote identification UAS. Under this alternative, owners
desiring to operate any UAS that is not a standard remote
identification UAS would be required to travel to an FAA-recognized
identification area. The FAA analyzed the shortest distance between zip
codes for each online hobbyist registration and the zip code closest to
one of over 2,000 AMA flying fields.\171\ The zip code analysis
indicates a person operating UAS that are not standard remote
identification UAS would be required to travel an average of 16 miles
one-way to the nearest FAA-recognized identification area.
---------------------------------------------------------------------------

    \171\ As of April 26, 2019, there are 1,013,893 individuals
registered as hobbyists.
---------------------------------------------------------------------------

Assumptions
     Operators of UAS that are not standard remote
identification UAS are

willing to travel to an FAA-recognized identification area.
     The average distance between an FAA-recognized
identification area and the homes for operators of UAS used for limited
recreational operations is 32 miles round trip.
    On average, operators of UAS that are not standard remote
identification UAS would travel to an FAA-recognized identification
area 52 times per year.
     The share of the UAS fleet operated by recreational flyers
that is not a standard remote identification UAS is assumed to be 82
percent.
    Based on these assumptions, the present value travel costs and
opportunity cost of time accrued to recreational flyers is $2,276
million at a seven percent discount rate. These costs accrue during
years 4-10 of the analysis period. Additionally, under this
alternative, affected recreational flyers would no longer be required
to subscribe to a Remote ID USS since they would only be flying at an
FAA-recognized identification area. Thus this affected group would
avert subscription costs. Averted present value subscription costs in
this alternative total $72.7 million at a seven percent discount rate.
    As discussed above, the costs of this alternative are calculated
based on individuals traveling an average of 52 times per year to an
FAA-recognized identification area. Given that there is uncertainty
regarding the average number of trips that this affected group would
take on an annual basis, the FAA conducted a sensitivity analysis by
varying the input for travel frequency. Using 26 trips per year, the
total cost becomes $1,138 million, and using 90 trips per year the cost
is $3,939.5 million.\172\
---------------------------------------------------------------------------

    \172\ These trip frequencies assume that an individual travels,
on average, every other weekend (26 trips/year), every weekend (52
trips/year), or once every four days (90 trips/year) to an FAA-
Recognized Identification Area. This is used as a sensitivity
analysis of the number of times an individual would travel to an
FAA-recognized identification area in the period of one year. The
lower bound of the sensitivity analysis is based on the average
number of rounds a golfer plays in a year (Source: https://www.ngf.org/golf-industry-research/#golfers). The upper bound of the
sensitivity analysis is based on the number of times in a year a
person engages in a running/jogging/trail running activity (Source:
https://outdoorindustry.org/resource/2018-outdoor-participation-report/. Page 23).
---------------------------------------------------------------------------

vii. Grandfathering of Legacy UAS
    The FAA considered allowing UAS that would not be able to retrofit
to continue operating in the airspace of the United States using
software-based flight notification with telemetry.\173\ This would be
accomplished through software based mission planning services. The UAS
operator would self-declare information pertaining to area their drone
would be flying in, including altitude, duration and type of aircraft.
This information would be shared prior to flight to enable authorities
to clearly identify compliant operations. Software apps are currently
available on the marketplace that would support this alternative.
---------------------------------------------------------------------------

    \173\ This option was discussed in the UAS Identification and
Tracking (UAS ID) Aviation Rulemaking Committee (ARC)--ARC
Recommendations Final Report, September 30, 2017.
---------------------------------------------------------------------------

    The FAA did not pursue this option because it would not meet the
mission needs of the proposed rule for security, performance, and
information quality. While this alternative would allow for the rapid
adoption of Remote ID and Tracking for nearly all classes of UAS, it
relies on the individual operator to proactively report their location
to a USS. Conversely, the proposed rule requires remote identification
UAS to automatically connect to a USS. If the UAS cannot connect to the
USS, the unmanned aircraft will not take off.

B. Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA)
establishes ``as a principle of regulatory issuance that agencies shall
endeavor, consistent with the objectives of the rule and of applicable
statutes, to fit regulatory and informational requirements to the scale
of the businesses, organizations, and governmental jurisdictions
subject to regulation. To achieve this principle, agencies are required
to solicit and consider flexible regulatory proposals and to explain
the rationale for their actions to assure that such proposals are given
serious consideration.'' The RFA covers a wide range of small entities,
including small businesses, not-for-profit organizations, and small
governmental jurisdictions.
    Agencies must perform a review to determine whether a rule will
have a significant economic impact on a substantial number of small
entities. If the agency determines that it will, the agency must
prepare a regulatory flexibility analysis as described in the RFA.
    The FAA believes this proposed rule would have a significant
economic impact on a substantial number of small entities. Therefore,
under Section 603(b) of the RFA, the initial analysis must address:
     Description of reasons the agency is considering the
action.
     Statement of the legal basis and objectives for the
proposed rule.
     Description of the record-keeping and other compliance
requirements of the proposed rule.
     All Federal rules that may duplicate, overlap, or conflict
with the proposed rule.
     Description and estimated number of small entities to
which the proposed rule will apply.
     Description of Significant Regulatory Alternatives for
Small Entities.
1. Description of Reasons the Agency Is Considering the Action
    The remote identification of UAS is necessary to ensure public
safety and the safety and efficiency of the airspace of the United
States. The remote identification framework would provide UAS-specific
data, which could be used in tandem with new technologies and
infrastructure to facilitate more advanced operational capabilities
(such as detect-and-avoid and aircraft-to-aircraft communications that
support beyond visual line of sight operations) and to develop the
necessary elements for UTM. Furthermore, remote identification of UAS
would provide airspace awareness to the FAA, national security
agencies, and law enforcement entities, which could be used to
distinguish compliant airspace users from those potentially posing a
safety or security risk.
    Current rules for registration and marking of unmanned aircraft
facilitate the identification of the owners of unmanned aircraft, but
normally only upon physical examination of the aircraft. Existing
electronic surveillance technologies, like transponders and ADS-B, were
considered as potential solutions for the remote identification of UAS
but were determined to be unsuitable due to the lack of infrastructure
for these technologies at lower altitudes and potential saturation of
available radio frequency spectrum. Currently, the lack of real-time
and historical data regarding UAS operations affects the ability of the
FAA to oversee the safety and security of the airspace of the United
States, creates challenges for national security agencies and law
enforcement entities in identifying threats, and impedes the further
integration of UAS into the airspace of the United States. The FAA
proposes to address the identification issues associated with UAS by
requiring the use of systems and technology to enable the remote
identification of UAS.
    The proposed requirement is consistent with the FAA's safety
mission of overseeing and promoting safety in air commerce and national
security and promoting the safe and

efficient use of the navigable airspace and would serve the public
interest by creating situational awareness of all UAS flying in the
airspace of the United States. It would also strengthen the FAA's
oversight of UAS operations and support efforts of law enforcement to
address and mitigate disruptive behavior and hazards, which may
threaten the safety and security of the airspace of the United States,
other UAS, manned aviation, and persons and property on the ground. The
near real-time access to remote identification information would also
assist Federal security partners in threat discrimination--allowing
them to identify an operator and make an informed decision regarding
the need to take actions to mitigate a perceived security or safety
risk. The proposed rule would enhance the FAA's ability to monitor
compliance with applicable regulations; would contribute to the FAA's
ability to undertake compliance, enforcement, and educational actions
required to mitigate safety risks; and would advance the safe
integration of UAS into the airspace of the United States.
2. Statement of the Legal Basis and Objectives for the Proposed Rule
    Statement of the legal basis. The FAA promulgates this rulemaking
pursuant to various authorities. First, under 49 U.S.C. 40103(b)(1) and
(2), the FAA is directed to issue regulations: (1) To ensure the safety
of aircraft and the efficient use of airspace; and (2) to govern the
flight of aircraft for purposes of navigating, protecting and
identifying aircraft, and protecting individuals and property on the
ground.
    Second, under 49 U.S.C. 44701(a)(5), the FAA must promote safe
flight of civil aircraft by prescribing regulations the FAA finds
necessary for safety in air commerce and national security.
    Third, under section 2202 of Public Law 114-190, the Administrator
must convene industry stakeholders to facilitate the development of
consensus standards for remotely identifying operators and owners of
UAS and associated unmanned aircraft and to issue regulations or
guidance based on any standards developed.
    Fourth, under 49 U.S.C. 44805, the Administrator must establish a
process for, among other things, accepting risk-based consensus safety
standards related to the design and production of small UAS.
    Fifth, under 49 U.S.C. 44805(b)(7), the Administrator must take
into account any consensus identification standard regarding remote
identification of unmanned aircraft developed pursuant to section 2202
of Public Law 114-190.
    Sixth, under 49 U.S.C. 44809(f), the Administrator is not
prohibited from promulgating rules generally applicable to unmanned
aircraft, including those unmanned aircraft eligible for the exception
for limited recreational operations of unmanned aircraft. Among other
things, this authority extends to rules relating to the registration
and marking of unmanned aircraft and the standards for remotely
identifying owners and operators of UAS and associated unmanned
aircraft.
    Seventh, the FAA has authority to regulate registration of aircraft
under 49 U.S.C. 44101-44106 and 44110-44113 which require aircraft to
be registered as a condition of operation and establish the
requirements for registration and registration processes.
    Lastly, this rulemaking is promulgated under the authority
described in 49 U.S.C. 106(f), which establishes the authority of the
Administrator to promulgate regulations and rules, and 49 U.S.C.
40101(d), which authorizes the FAA to consider in the public interest,
among other things, the enhancement of safety and security as the
highest priorities in air commerce, the regulation of civil and
military operations in the interest of safety and efficiency, and
assistance to law enforcement agencies in the enforcement of laws
related to regulation of controlled substances, to the extent
consistent with aviation safety.
    Objectives for the proposed rule. The FAA is integrating UAS
operations into the airspace of the United States through a phased,
incremental, and risk-based approach.\174\
---------------------------------------------------------------------------

    \174\ Consult http://www.faa.gov/uas for additional information
regarding UAS operations.
---------------------------------------------------------------------------

    On June 28, 2016, the FAA achieved a major step towards UAS
integration when it issued the final rule for Operation and
Certification of Small Unmanned Aircraft Systems.\175\ This was one of
multiple UAS-related regulatory actions taken by the FAA to enable the
safe integration of UAS into the airspace of the United States. As
technology progresses and the utility of UAS increases, the FAA
anticipates a need for further rulemaking to continue to foster the
safe, secure, and efficient use of the airspace of the United States.
The FAA believes that the next step in the regulatory process involves
the enactment of regulatory requirements to enable the remote
identification of UAS operating in the airspace of the United States.
---------------------------------------------------------------------------

    \175\ 81 FR 42064.
---------------------------------------------------------------------------

    This action would implement requirements for the remote
identification of UAS. The remote identification of UAS in the airspace
of the United States would address safety, security, and law
enforcement concerns regarding the further integration of these
aircraft into the airspace while also enabling greater operational
capabilities.
3. Description of the Record-Keeping and Other Compliance Requirements
of the Proposed Rule
    UAS owners, UAS operators (including pilots, remote pilots, and
persons manipulating the flight controls of UAS), UAS manufacturers
(i.e., persons responsible for the production of UAS), developers of
remote identification means of compliance, and Remote ID USS would have
important roles in the remote identification of UAS. Please see section
I.C of this preamble for additional detail describing the roles and
responsibilities of each group within the scope of the proposed rule.
    This proposed rule imposes recordkeeping requirements. First, all
entities intending to use the small unmanned aircraft for limited
recreational operations would be required to include the manufacturer,
model, and serial number of each small unmanned aircraft in the
registration of that aircraft. Requiring the manufacturer, model, and
serial number would obligate registrants to add this additional
information to the registration for all their aircraft used for limited
recreational operations.
    Next, the FAA is proposing that persons who develop standards that
the FAA may accept as a means of compliance submit those standards for
review and acceptance by the FAA. A person who submits a means of
compliance is proposed to be required to retain the data for as long as
the means of compliance is accepted plus an additional 24 calendar
months.
    The FAA is proposing that persons who produce UAS with remote
identification must meet the minimum performance requirements of the
proposed rule using an FAA-accepted means of compliance. To demonstrate
the UAS has been produced to meet the minimum performance requirements
using an FAA-accepted means of compliance, persons responsible for the
production of UAS would be required to submit to the FAA a declaration
of compliance. A person who submits a declaration of compliance would
be required to retain the data submitted for 24 calendar months after
the cessation

of production of the UAS with remote identification.
    The proposed rule would require a producer to label the UAS to show
that it was produced with remote identification technology capable of
meeting the proposed rule. The proposed labeling requirement would
inform the operator that the UAS is eligible to conduct operations
within the airspace of the United States.
    The FAA proposes standard remote identification UAS and limited
remote identification UAS be designed and produced to connect to the
internet and transmit remote identification message elements to Remote
ID USS. The collection of this information in the form of message
elements is necessary to comply with the statutory requirement to
develop standards for remotely identifying operators and owners of UAS
and associated unmanned aircraft. The information transmitted between
the UAS and the Remote ID USS is collected electronically without input
from the human operator, thus there is no burden on the person
manipulating the flight controls of the unmanned aircraft to manually
submit information to the Remote ID USS. There would be an exchange of
information between the Remote ID USS and the FAA when identification
of the UAS is required. At this time, it is unknown how often exchanges
between the FAA and Remote ID USS will occur.
    To support the transmission of these message elements, the FAA
envisions that a Remote ID USS (an FAA-qualified third party service
provider) demonstrate four primary capabilities: (1) The ability to
share the remote identification message elements in near real-time with
the FAA upon request; (2) the ability to maintain remote identification
information; (3) the ability to meet contractually-established
technical parameters; and (4) the ability to inform the FAA when their
services are active and inactive. Each Remote ID USS would be required
to establish a contractual relationship with the FAA through a
Memorandum of Agreement (MOA), and to comply with a series of terms,
conditions, limitations, and technical requirements, and to outline how
the Remote ID USS must interpret and provide data to external users, as
well as store and protect such data.
    The FAA is proposing that representatives of CBOs submitting
applications for flying sites to become FAA-recognized identification
areas may apply for such designation in a form and manner acceptable to
the FAA. The application would collect certain information regarding
the location and requirements of the flying site, and require the CBO
representative to confirm certain information regarding the site.
4. All Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rule
    The FAA is unaware that the proposed rule will overlap, duplicate
or conflict with existing Federal rules.
5. Description and an Estimated Number of Small Entities to Which the
Proposed Rule Will Apply
    This proposed rule would apply to four communities of small
entities: Producers of UAS, entities that either own or operate UAS,
community based organizations, and Remote ID USS.
    The first affected group of small entities discussed will be
producers. For purposes of this rulemaking, the FAA estimates that
there are approximately 154 U.S. entities that produce small UAS as of
January 2019.\176\ Out of these 154 U.S. entities, data on entity size,
as defined by number of employees, was available for only 117. Out of
the 117 entities for which data was available, 87 of the entities are
categorized as small, 12 of the entities are categorized as medium, and
18 are categorized as large.\177\ Data for the remaining 37 entities
was not available and thus the entity size could not be determined,
however a majority are believed to be small. NAICS code 336411 is
titled ``Miscellaneous Aircraft Manufacturing.'' The manufacture of
unmanned and robotic aircraft are included in this code. The SBA
defines industries within this code to be small if they employ 1,500
employees or less.
---------------------------------------------------------------------------

    \176\ AUVSI Air Platform Database. Accessed January 2019.
    \177\ This is based on AUVSI criteria for number of employees.
The AUVSI criteria for a manufacturer of unmanned aircraft to be
identified as a small entity is 49 employees or fewer. The criteria
to be identified as a medium entity is 50-499 employees. Large
entities are determined to have 500 or more employees.
---------------------------------------------------------------------------

    The next group of entities affected by the proposed rule are owners
and operators of UAS that conduct operations under part 107 or part 91.
Based on analysis conducted by the Association for Unmanned Vehicle
Systems International (AUVSI), over 85 percent of part 107 waivers
granted have been to small businesses.\178\ Using this finding based on
part 107 waiver data as a proxy for the size of all entities operating
UAS under part 107, the FAA assumes that approximately 85 percent of
the entities operating under part 107 are small. The FAA requests
information on this assumption and the number of small entities
affected by the proposal.
---------------------------------------------------------------------------

    \178\ (AUVSI) Association of Unmanned Vehicle Systems
International. As of July 31, 2017, 1,074 waivers had been issued of
which 85 percent were granted to small entities (entities with less
than 10 employees).
---------------------------------------------------------------------------

    Model aircraft organizations \179\ currently operating flying sites
are affected by this rulemaking. These organizations would be required
to submit a request to the FAA to have an established flying site
approved as an FAA-recognized identification area. Based on membership
of AMA (Academy of Model Aeronautics), it is estimated that each flying
club has, on average, 78 members.\180\ SBA standards for NAICS code
713990 ``All Other Amusement and Recreation Activities'' is $7.5
million in annual receipts, or less, to be considered a small entity.
Financial records for these individual community based organizations
are not public information, but it is believed that none have receipts
totaling $7.5 million, and thus each is considered a small entity.
---------------------------------------------------------------------------

    \179\ Academy of Model Aeronautics (AMA), http://www.modelaircraft.org/aboutama/whatisama.aspx; more than 2,500 AMA
fields.
    \180\ Ibid. Based on 2018 AMA membership of 195,000 and
approximately 2,500 AMA fields, the average membership per field is
estimated to be 78 individuals.
---------------------------------------------------------------------------

    The last group of entities affected by the proposed rule are Remote
ID USS. Because Remote ID USS do not yet exist, the FAA is unable to
classify the entities as either small or large.
    The FAA determines that a majority of entities impacted by this
proposed rule are small. Therefore, the FAA determines this proposed
rule would have a significant economic impact on a substantial number
of small entities.
6. Description of Significant Regulatory Alternatives Considered for
Small Entities
    The FAA considered both more and less costly alternatives as part
of the proposed rule because the RFA requires the agency to consider
significant regulatory alternatives that meet the agency's statutory
objectives and minimize the costs to small entities. The alternatives
and the FAA's reasons for rejecting those alternatives are discussed
below.
i. Alternative Compliance Periods--Producers
    The chosen compliance period to estimate producer costs is two
years beyond the effective date of the final rule. The FAA considered a
producer compliance period of one year; however, this alternative was
determined to be impractical. One

reason that the alternative was not chosen is that there is no FAA-
accepted means of compliance currently available for producers to build
to. Until an FAA-accepted means of compliance exists, producers would
not be able to submit a declaration of compliance. Accordingly, the FAA
believes it is practical for an industry consensus standard to be
developed that could be submitted for acceptance as a means of
compliance by the end of year one after the effective date of the final
rule, with an additional year for producers to design, build, and test
UAS that meet the standard.
    The two-year compliance period for producers is consistent with
information on timelines for available technology from the UAS-ID ARC
Report and expected availability of USS. The ARC found technologies
similar to planned Remote ID USS transmissions have a ``readiness for
implementation'' of one year or less. This means products would be
available for original equipment manufacturers (producers) within one
year of the requirements being known. This one-year period would start
after the availability of FAA-accepted means of compliance and services
from Remote ID USS--we expect means of compliance and Remote ID USS
availability to take up to one year after the effective date of the
proposed rule.
    At this time, the two-year producer compliance period appears
reasonable and has a technical basis. The FAA has not identified or
analyzed an alternative. The current proposal does not preclude earlier
producer compliance (potential economic incentive to comply earlier).
The FAA requests comments on alternative compliance periods that would
minimize costs for small producers.
ii. Alternative Operational Compliance Periods
    The FAA considered three years beyond the producer compliance date
for owners and operators to comply with the remote identification
requirements of this proposed rule. This period of time coincides with
the three-year lifespan of a small UAS and would have prevented costly
grounding or replacement of UAS prior to end of useful life. However,
the FAA determined that the three-year compliance period was
unacceptable since it prolonged safety and security risks to air
traffic and airports by delaying the ability of law enforcement
personnel to identify unauthorized UAS operations. To reduce the delay
in implementing remote identification, the owner/operator compliance
period was reduced from three years down to one year.
    The FAA analyzed the costs of allowing up to three years for
owners/operators to be in compliance and found this alternative
minimizes costs to owners/operators since on average the affected
existing fleet of UAS could be replaced at the end of useful life
(three years). In addition, this alternative is more likely to reduce
uncertainty of adverse impacts to producers with inventories of UAS
produced before the compliance date that would likely not meet the
remote identification provisions of this proposal. Given the average
three-year UAS lifespan, the three-year operational compliance period
would likely assist producers in depleting existing non-compliant
inventories with reduced impact compared to the proposed one-year
compliance period.
    Under this alternative, net present value costs at a three percent
discount rate are $491.7 million with annualized net costs of $57.7
million. At a seven percent discount rate, net present value costs are
$392.6 million with annualized net cost of $55.9 million. These costs
are lower than the costs of the proposed rule: the proposal results in
present value costs of about $582 million at a three percent discount
rate with annualized net costs of about $68.2 million, and net present
value costs of about $473 million at a seven percent discount rate with
annualized net costs of about $67.4 million. This alternative would
likely minimize impacts on small entities affected by this proposed
rule. This alternative does not include impacts and costs related to
the loss of use associated with UAS that cannot be retrofit and earlier
Remote ID USS subscription fees that would occur under the proposed
rule.
iii. FAA-Provided Remote Identification Services
    The proposed rule assumes that Remote ID USS will come forward to
offer remote identification services to individuals operating UAS in
the airspace of the United States. The alternative would be for the FAA
to provide these services directly to operators of UAS instead of
providing them through a third party provider. The FAA is uncertain how
it would recoup costs for these services, at least in the short run.
The FAA chose the preferred alternative for several reasons. First, the
LAANC service model has been effective due to the success of public and
private sector partnerships in implementing LAANC and clear
Congressional approval of the model. Second, similar to LAANC USS, the
FAA will not provide payment for the development or operation of Remote
ID USS products or services. The FAA anticipates that the Remote ID USS
would recoup the costs of providing services either through the sale of
subscriptions for remote identification services, on-line advertising,
or ``value added'' services that can be purchased from the service
provider. The FAA requests comments on alternatives for remote
identification services that would minimize cost to small entities.

C. International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal
agencies from establishing standards or engaging in related activities
that create unnecessary obstacles to the foreign commerce of the United
States. Pursuant to these Acts, the establishment of standards is not
considered an unnecessary obstacle to the foreign commerce of the
United States, so long as the standard has a legitimate domestic
objective, such as the protection of safety, and does not operate in a
manner that excludes imports that meet this objective. The statute also
requires consideration of international standards and, where
appropriate, that they be the basis for U.S. standards.
    The FAA has assessed the potential effect of this proposed rule and
determined that it ensures the safety of the American public and does
not exclude imports that meet this objective. As a result, this
proposed rule is not considered as creating an unnecessary obstacle to
foreign commerce.
    The FAA has considered the ongoing work of international
organizations and other countries. No international (e.g., ICAO)
standards currently exist for the types of operations the FAA proposes
in this rule. The FAA will maintain its awareness of other countries'
and international organizations' work in developing potential standards
relevant to UAS operations.

D. Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement
assessing the effects of any Federal mandate in a proposed or final
agency rule that may result in an expenditure of $100 million or more
(in 1995 dollars) in any one year by State, local, and tribal
governments, in the aggregate, or by the private sector; such a mandate
is deemed to be a ``significant regulatory action.'' The FAA currently

uses an inflation-adjusted value of about $155 million in lieu of $100
million.
    Although this proposed rule is a significant regulatory action, it
does not contain a mandate that would impose costs of more than $155
million annually. As a result, the requirements of Title II of the Act
do not apply.

E. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires
that the FAA consider the impact of paperwork and other information
collection burdens imposed on the public.
    There are several new information collections that the FAA is
proposing as part of this rule, as well as an existing information
collection that is proposed to be revised.
1. New Information collection: Additions to Small Unmanned Aircraft
Registration System
    In this rule, the FAA is proposing to require that all persons
registering small unmanned aircraft under part 48 include one or more
telephone number(s) of the applicant, and the manufacturer, model, and
serial number of the unmanned aircraft as part of the registration
information. This information would then be included on the Certificate
of Aircraft Registration.
    The FAA recognizes that persons who currently register their small
unmanned aircraft intending to use the small unmanned aircraft as other
than a model aircraft are already required to provide the manufacturer,
model, and serial number, if available, under Sec.  48.100(a). The FAA
proposes to require all persons who register their small unmanned
aircraft to include manufacturer name, model name, serial number, and
telephone number(s) in the registration. Thus, some persons who have
previously registered small unmanned aircraft, but did not include
telephone number, manufacturer, model, and serial number information,
would be required to update the registration of that aircraft.
    The FAA is also proposing to require all individuals intending to
use the small unmanned aircraft exclusively as a model aircraft to
include the telephone number(s) of the applicant, and the manufacturer,
model, and serial number of each small unmanned aircraft in the
registration. Requiring the telephone number(s), manufacturer, model,
and serial number would necessitate amending the registration for all
registered model aircraft. Additionally, the FAA proposes to revise the
registration requirements in Part 48 to remove the provisions that
allow small unmanned aircraft to register as model aircraft under a
single Certificate of Aircraft Registration and to require the
individual registration of each aircraft, regardless of its intended
use.\181\ This means that every small unmanned aircraft registered
under part 48 would need to have its own Certificate of Aircraft
Registration.
---------------------------------------------------------------------------

    \181\ This proposal uses the term ``limited recreational
operations'' when discussing registration requirements under part
48. Part 48 uses the term ``model aircraft'' to describe
recreational UAS operations. The FAA considers that model aircraft
under part 48 are consistent with the ``limited recreational
operations'' described in 49 U.S.C. 44809, therefore ``limited
recreational operations'' has been used throughout to ensure
consistency of terminology with current statutory requirements.
---------------------------------------------------------------------------

    As has been discussed, the FAA recognizes that some small unmanned
aircraft would already have serial numbers, while others would require
the FAA to assign serial numbers as part of the process of amending the
registration. Requiring owners of unmanned aircraft to provide their
telephone numbers as part of the registration process would assist FAA
and law enforcement to disseminate safety and security related
information to the registrant in near real-time.
    Therefore, the FAA is proposing a new information collection,
Additions to Small Unmanned Aircraft Registration System, to reflect
the additional burden of adding the telephone number, manufacturer,
model, and serial number to each registration and to reflect the burden
of having each unmanned aircraft registered separately.
    Use: The FAA would use the telephone number, manufacturer, model,
and serial number to assist with the remote identification of unmanned
aircraft systems. The serial number, which may be transmitted as the
unique identifier of an unmanned aircraft, would help to identify the
aircraft and associate the aircraft with its owner. The FAA would use
the telephone number of the owner to disseminate safety and security-
related information to the registrant.

  Table 11--Small Unmanned Aircraft Registration--Limited Recreational Operations Incremental Hourly Burden and
                                                      Cost
                                                     [$Mil.]
----------------------------------------------------------------------------------------------------------------
                                                                                Total cost
                              Year                                 Registrations   Hourly burden      ($Mil.)
----------------------------------------------------------------------------------------------------------------
1...............................................................         442,623          12,082           $0.17
2...............................................................         335,236           8,040            0.11
3...............................................................         372,127           8,899            0.13
                                                                 -----------------------------------------------
    Total.......................................................       1,149,986          29,021            0.41
----------------------------------------------------------------------------------------------------------------
Row and column totals may not sum due to rounding.

2. New Information Collection: Identification of Foreign-Registered
Civil Unmanned Aircraft Operating in the Airspace of the United States
    The FAA is proposing to extend the operational requirements of part
89 to persons operating foreign civil unmanned aircraft in the United
States. These persons would have to comply with the remote
identification requirements, which means that these persons would have
to operate foreign civil unmanned aircraft that qualify as standard
remote identification UAS, limited remote identification UAS, or that
have no remote identification equipment but are operated within an FAA-
recognized identification area.
    The FAA is proposing to allow a person to operate foreign-
registered civil unmanned aircraft in the United States only if the
person submits a notice of identification to the Administrator. The
notice would include the following information to allow FAA to
associate an unmanned aircraft to a responsible person:
    (1) The name of the operator and, for an operator other than an
individual, the name of the authorized

representative providing the notification.
    (2) The physical address of the operator and, for an operator other
than an individual, the physical address for the authorized
representative. If the operator or authorized representative does not
receive mail at the physical address, a mailing address must also be
provided.
    (3) The physical address of the operator in the United States.
    (4) One or more telephone number(s) where the operator can be
reached while in the United States.
    (5) The email address of the operator or, for an operator other
than an individual, the email address of the authorized representative.
    (6) The aircraft manufacturer and model name.
    (7) The serial number of the aircraft.
    (8) The country of registration of the aircraft.
    (9) The registration number of the aircraft.
    Once a person submits a notice of identification, the FAA would
issue a confirmation of identification. A person operating a foreign-
registered unmanned aircraft in the United States would have to
maintain the confirmation of identification at the UAS' control station
and would have to produce it when requested by the FAA or a law
enforcement officer. The holder of a confirmation of identification
would have to ensure that the information provided remains accurate and
is current prior to operating a foreign registered civil unmanned
aircraft system in the United States.
    Use: The FAA would use information provided by operators of
foreign-registered civil unmanned aircraft operating in the airspace of
the United States to identify those aircraft.

                                                           Table 12--Notice of Identification
                                                                       [Unit cost]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                       Minutes to      Additional                                                        Recreational flyer  opportunity
                Year                    establish      minutes per    Total minutes  Part 107 opportunity cost of time   cost  of time  ($0.237/minute)
                                      account \182\     aircraft                            ($1.55/minute) \183\                      \184\
--------------------------------------------------------------------------------------------------------------------------------------------------------
1..................................               5               1               6  $9.30/notification...............  $1.42/notification.
2..................................               5               1               6  $9.30/notification...............  $1.42/notification.
3..................................               5               1               6  $9.30/notification...............  $1.42/notification.
--------------------------------------------------------------------------------------------------------------------------------------------------------

3. New Information Collection: Remote Identification Means of
Compliance, Declaration of Compliance, and Labeling Requirements
---------------------------------------------------------------------------

    \182\ https://www.faa.gov/news/updates/media/2015-12-13_2120-AK82_RIA.pdf. See Page 13 of the Regulatory Impact Analysis of the
Interim Final Rule Regulatory Evaluation for the Registration and
Marking Requirements for Small Unmanned Aircraft. RIN 2120-AK82.
    \183\ The FAA estimates the wage earned by Part 107 operators to
be similar to that of a fully burdened wage (compensation +
benefits) of an FAA technical subject matter expert, which is $92.72
per hour ($1.55 per minute).
    \184\ Department of Transportation Departmental Guidance on
Valuation of Travel Time in Economic Analysis, September 27, 2016.
Table 4 Recommended Hourly Values of Travel Time Savings, Page 17.
In constant dollars, the hourly value of time for personal travel is
$14.21 per hour ($.237 per minute). This value is used as a proxy
for the value of time of someone operating UAS for recreational
operations.
---------------------------------------------------------------------------

i. Means of Compliance
    The FAA is proposing to require persons who develop standards that
the FAA may accept as means of compliance for the production of UAS
with remote identification to submit those standards for review and
acceptance by the FAA. The means of compliance would include
requirements for producer demonstration of how the UAS with remote
identification performs its intended functions and meets the
performance requirements by analysis, ground test, or flight test, as
appropriate. A person who submits a means of compliance that is
accepted by the FAA would be required to retain the following data for
as long as the means of compliance is accepted and an additional 24
calendar months: All documentation and substantiating data submitted
for the acceptance of the means of compliance; records of all test
procedures, methodology, and other procedures, if applicable; and any
other information necessary to justify and substantiate how the means
of compliance enables compliance with the remote identification
requirements of part 89.
    Use: The FAA would use the means of compliance as a way for persons
responsible for the production of standard remote identification UAS or
limited remote identification UAS to demonstrate compliance with the
requirements for remote identification of UAS.

                                                  Table 14--Means of Compliance Hourly Burden and Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Year                             MOC submitted    Total pages    Hrs per page     Total hours    Cost per hour    Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................................               1              12               1              12          $92.72       $1,112.64
2.......................................................               1              12               1              12           92.72        1,112.64
3.......................................................               1              12               1              12           92.72        1,112.64
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................               3              36               3              36  ..............        3,337.92
--------------------------------------------------------------------------------------------------------------------------------------------------------
Row and column totals may not sum due to rounding.

ii. Declaration of Compliance
    The FAA is proposing to require persons responsible for the
production of UAS with remote identification to produce those UAS to
meet the minimum performance requirements of the rule using an FAA-
accepted means of compliance. To demonstrate that a UAS has been
produced using an FAA-accepted means of compliance, producers would be
required to submit

to the FAA a declaration of compliance containing:
     The name, physical address, telephone number, and email
address of the person responsible for production of the standard remote
identification UAS or limited remote identification UAS.
     The UAS make and model.
     The UAS serial number, or the range of serial numbers for
which the person responsible for production is declaring compliance.
     The means of compliance used in the design and production
of the UAS and whether the UAS is a standard remote identification UAS
or a limited remote identification UAS.
     Whether the declaration of compliance is an initial
declaration or an amended declaration, and if the declaration of
compliance is an amended declaration, the reason for the amendment.
     A declaration that the person responsible for the
production of the UAS:
    [cir] Can demonstrate that the UAS was designed and produced to
meet the minimum performance requirements of standard remote
identification UAS or limited remote identification UAS by using an
FAA-accepted means of compliance.
    [cir] Will, upon request, allow the Administrator to inspect its
facilities, technical data, and any UAS produced with remote
identification, and to witness any tests necessary to determine
compliance with part 89, subpart D.
    [cir] Will perform independent audits on a recurring basis, and
whenever the FAA provides notice of noncompliance or of potential
noncompliance, to demonstrate compliance with the requirements of
subpart F of part 89, and will provide the results of those audits to
the FAA upon request.
    [cir] Will maintain product support and notification procedures to
notify the public and the FAA of any defect or condition that causes
the UAS to no longer meet the requirements of subpart F of part 89,
within 15 calendar days of the date the person becomes aware of the
defect or condition.
    A person who submits a declaration of compliance that is accepted
by the FAA would be required to retain the following data for 24
calendar months after the cessation of production of the UAS with
remote identification: The means of compliance, all documentation, and
substantiating data related to the means of compliance used; records of
all test results; and any other information necessary to demonstrate
compliance with the means of compliance so that the UAS meets the
remote identification requirements of part 89.
    Use: The FAA would use the declaration of compliance to determine
that the person responsible for the production of standard remote
identification UAS or limited remote identification UAS has
demonstrated compliance with the requirements for remote identification
of UAS.

                                               Table 13--Declaration of Compliance Hourly Burden and Cost
                                                                         [$Mil.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Year                             DoC submitted   Pages per DoC  Hours per page   Hourly burden   Cost per hour    Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................................  ..............  ..............  ..............  ..............  ..............  ..............
2.......................................................           1,155              50               1          57,750          $82.93           $4.79
3.......................................................              19              50               1             945           82.93            0.08
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................           1,174  ..............  ..............          58,695           82.93            4.87
--------------------------------------------------------------------------------------------------------------------------------------------------------
Row and column totals may not sum due to rounding.

iii. Labeling
    For standard remote identification UAS and limited remote
identification UAS, the proposed rule would require the person
responsible for production of the UAS to label the unmanned aircraft to
show that it was produced with remote identification technology that
meets the requirements of the proposed rule and to indicate whether it
is a standard remote identification UAS or a limited remote
identification UAS. The label would be in English and be legible,
prominent, and permanently affixed to the unmanned aircraft. The
proposed labeling requirement would assist the operator to know that
his or her UAS is eligible to conduct operations within the airspace of
the United States.
    Use: The proposed labeling requirement would assist the FAA and
owners and operators of UAS to determine if the UAS meets the remote
identification requirements of the proposed rule.

                              Table 14--Labeling Requirement Hourly Burden and Cost
                                                     [$Mil.]
----------------------------------------------------------------------------------------------------------------
                                     Number of       Hours per
              Year                   platforms        design       Hourly burden   Cost per hour    Total cost
----------------------------------------------------------------------------------------------------------------
1...............................  ..............  ..............  ..............  ..............  ..............
2...............................           1,100               2           2,200          $82.93          $0.182
3...............................              18               2              36           82.93           0.003
                                 -------------------------------------------------------------------------------
    Total.......................           1,118  ..............           2,236  ..............           0.185
----------------------------------------------------------------------------------------------------------------
Row and column totals may not sum due to rounding.

4. New Information Collection: UAS Remote Identification Message
Elements
    The FAA is proposing that standard remote identification UAS and
limited remote identification UAS be designed and produced to connect
to the internet and transmit remote identification message elements to
Remote Identification UAS Service Suppliers (Remote ID USS). The
collection of this information in the form of message elements is
necessary to comply with

the statutory requirement to develop standards for remotely identifying
operators and owners of UAS and associated unmanned aircraft.
Furthermore, remote identification of UAS would provide airspace
awareness to the FAA, national security agencies, and law enforcement
entities, which could be used to distinguish compliant airspace users
from those potentially posing a safety or security risk.
    Under this proposed rule, no person would be able to operate a UAS
required to have remote identification within the airspace of the
United States unless the UAS is capable of connecting to the internet
and transmitting certain remote identification message elements
throughout the operation. Persons operating UAS would comply with
remote identification in one of three ways. First, standard remote
identification UAS would connect to the internet and transmit remote
identification message elements through that internet connection to a
Remote ID USS and broadcast those message elements directly from the
unmanned aircraft. These message elements would include the UAS
Identification (either the unmanned aircraft's serial number or session
ID), latitude, longitude, and barometric pressure altitude of both the
control station and the unmanned aircraft, a time mark, and an
emergency status code that would transmit only when applicable. A
standard remote identification UAS that could no longer broadcast the
message elements would have to land as soon as practicable.
    Second, limited remote identification UAS would be required to
connect to the internet and transmit similar remote identification
message elements through that internet connection to a Remote ID USS.
If the connection to the internet were unavailable or if the UAS could
no longer transmit remote identification message elements to a Remote
ID USS, the unmanned aircraft would not be able to take off. Limited
remote identification UAS would be designed and produced to operate no
more than 400 feet from the control station, cannot broadcast remote
identification message elements, and would have to be operated within
visual line of sight.
    The third way to comply with the UAS remote identification
requirements would be to operate a UAS without remote identification at
an FAA-Recognized Identification Area. Because these types of
operations do not involve any information exchanges with a Remote ID
USS, they were not considered as part of this information collection.
    Use: The remote identification message elements would be sent from
the UAS to the Remote ID USS over the internet. The Remote ID USS
would, in turn, transmit the information collected to the FAA as
required. To implement remote identification, the FAA anticipates
establishing a cooperative data exchange mechanism between the FAA and
Remote ID USS.
    The information transmitted between the UAS and the Remote ID USS
is collected electronically without input from the human operator, thus
there is no burden on the person manipulating the flight controls of
the UAS to submit information to the Remote ID USS. There would be an
exchange of information between the Remote ID USS and the FAA when
identification of the owner of the unmanned aircraft or the location of
the UAS is required. At this time, it is unknown how often exchanges
between the FAA and Remote ID USS would occur. The following table
shows the number of estimated respondents that would transmit messages
through the internet to a Remote ID USS and the number of Remote ID USS
that would exchange data with the FAA.

                 Table 15--Transmit USS Message Elements
------------------------------------------------------------------------
                                             Remote ID     Remote ID USS
                  Year                      respondents     respondents
------------------------------------------------------------------------
1.......................................  ..............  ..............
2.......................................         422,498              10
3.......................................         972,258              11
                                         -------------------------------
  Total.................................       1,394,756              26
------------------------------------------------------------------------

5. New Information Collection: Application for FAA-Recognized
Identification Areas
    The FAA is proposing that community-based organization (CBO)
representatives submitting applications for flying sites to become FAA-
recognized identification areas may apply for such establishment in a
form and manner acceptable to the FAA. The application would collect
certain information regarding the location of the flying site, and
require the CBO representative to confirm certain information regarding
the site.
    An applicant for an FAA-recognized identification area would be
required to submit: (1) The name of the CBO making the request; (2) a
declaration that the person making the request has the authority to act
on behalf of the CBO; (3) the name and contact information, including
telephone number, of the primary point of contact for communications
with the FAA; (4) the physical address of the proposed FAA-recognized
identification area; (5) the latitude and longitude coordinates
delineating the geographic boundaries of the proposed FAA-recognized
identification area, and (6) if applicable, a copy of any existing
letter of agreement regarding the flying site.
    Use: Applications would permit CBOs recognized by the Administrator
to apply for FAA-recognized identification area status.

                                   Table 16--CBO Request for FAA-Recognized Identification Area Hourly Burden and Cost
                                                                         [$Mil]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                             Requests        Pages per
                  Year                       submitted        request       Total pages   Hours per page    Total hours    Hourly burden    Total cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................           2,500               4          10,000             0.5            5000          $58.12           $0.29
2.......................................  ..............  ..............  ..............  ..............  ..............  ..............  ..............
3.......................................  ..............  ..............  ..............  ..............  ..............  ..............  ..............
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................           2,500  ..............          10,000  ..............           5,000  ..............            0.29
--------------------------------------------------------------------------------------------------------------------------------------------------------
Row and column totals may not sum due to rounding.

6. Requirements for Which Information Collections Are Not Proposed
i. Existing Information Collection 2120-0042: Aircraft Registration
    While the FAA is proposing to clarify in new Sec.  47.14 that all
unmanned aircraft registering under part 47 must include a serial
number as part of the registration, the FAA is not proposing to revise
existing information collection 2120-0042, Aircraft Registration. The
inclusion of a serial number in registrations under part 47 has always
been required and a revision to this information collection is not
necessary.
ii. Existing Information Collection 2120-0021: Certification: Pilots
and Flight Instructors
    While the FAA is proposing to require that new questions regarding
remote identification of UAS be included on the initial and recurrent
aeronautical knowledge tests described in Sec.  107.73, and that new
training be included in the initial and recurrent training described in
Sec.  107.74, for persons seeking a remote pilot certificate with a
small UAS rating, the FAA does not believe that the addition of these
questions would necessitate further time on the part of applicants to
complete the test or training. Therefore, the FAA is not proposing to
revise existing information collection 2120-0021, Certification: Pilots
and Flight Instructors.
iii. Remote ID USS
    While the FAA envisions the use of Remote ID USS for the
transmission of UAS remote identification information, the FAA is still
developing the concepts and requirements for those USS. Because the FAA
is uncertain at this time regarding the requirements for application by
persons to be Remote ID USS, the FAA is not proposing here to establish
an information collection for Remote ID USS.
    Individuals and organizations may send comments on the information
collection requirement to the address listed in the ADDRESSES section
at the beginning of this preamble by March 2, 2020. Comments may also
be submitted to the Office of Management and Budget, Office of
Information and Regulatory Affairs, Attention: Desk Officer for FAA,
New Executive Office Building, Room 10202, 725 17th Street NW,
Washington, DC 20053.

F. International Compatibility and Cooperation

    In keeping with U.S. obligations under the Convention on
International Civil Aviation, it is FAA policy to conform to
International Civil Aviation Organization Standards and Recommended
Practices to the maximum extent practicable. The FAA has reviewed the
corresponding ICAO Standards and Recommended Practices and has
identified no differences with these regulations. Additionally, the FAA
regularly reaches out to its international partners on a bilateral and
multilateral basis to harmonize regulations to the maximum extent
possible. The FAA's international outreach efforts include the
following:
     Discussions with the Switzerland Federal Office of Civil
Aviation (FOCA) regarding plans for use of remote identification to
facilitate U-Space \185\ operations and plans to allow multiple UAS
Service Suppliers to serve a range of U-Space operators in concept
similar to current and future FAA USS plans;
---------------------------------------------------------------------------

    \185\ As described by the Single European Sky ATM Research
(SESAR) Joint Undertaking, ``U-space is a set of new services
relying on a high level of digitalization and automation of
functions and specific procedures designed to support safe,
efficient and secure access to airspace for large numbers of
drones.'' https://www.sesarju.eu/U-space.
---------------------------------------------------------------------------

     Collaboration with the European Aviation Safety Agency
(EASA) on the EASA U-Space Regulatory Framework;
     Cooperation in the Joint Authorities for Rulemaking on
Unmanned Systems (JARUS) on UTM/U-Space and other regulatory
recommendations under development;
     Collaboration with the Transport Canada Civil Aviation
(TCCA) Remotely Piloted Aircraft Systems (RPAS) Task Force on policy,
rulemaking, regulatory, and research and development topics related to
UAS and beyond visual line of sight operations;
     Hosting the Sharing Best Practices for Managing Unmanned
Aircraft Systems (UAS) With Association of Southeast Asian Nations
(ASEAN) Member States workshop in Singapore; and
     Meetings with the Australia Civil Aviation Safety
Authority (CASA) to share best practices and lessons learned on UAS
integration.
    In addition, the FAA has assessed the European Commission
regulations for UAS remote identification and compared them to the
requirements in this proposal. One difference between the two is that
the European Commission regulations require only a remote
identification broadcast, whereas the FAA's proposal includes both a
broadcast and a requirement that the same information be transmitted
through an internet connection to a third-party service supplier.
Another difference is that the European regulation requires the
broadcast of both the unmanned aircraft registration number and the
serial number, whereas the FAA's proposal uses the unmanned aircraft
serial number or session ID as the unique identifier in the remote
identification message set. Other differences include that the European
regulation requires message elements for the route course and speed of
the unmanned aircraft, while the FAA's proposal does not and the FAA
proposal includes remote identification message elements for emergency
status and a time mark, but the European regulation does not. At the
same time, there are similarities. The European regulation and the
FAA's proposal both include the position of the unmanned aircraft and
the control station as remote identification message elements.

G. Environmental Analysis

    FAA Order 1050.1F identifies FAA actions that are categorically
excluded from preparation of an Environmental Assessment or
Environmental Impact Statement under the National Environmental Policy
Act (NEPA) in the absence of extraordinary circumstances. The FAA has
determined this rulemaking action qualifies for the categorical
exclusion identified in paragraph 5-6.6f of this order and involves no
extraordinary circumstances.
    This rulemaking action provides a framework for the remote
identification of all UAS operating in the airspace of the United
States. It does not affect the frequency of UAS operations in the
airspace of the United States. The FAA has reviewed the implementation
of the rulemaking action and determined it is categorically excluded
from further environmental review. Possible extraordinary circumstances
that would preclude the use of a categorical exclusion have been
examined and the FAA has determined that no such circumstances exist.
After careful and thorough consideration of the rulemaking action, the
FAA finds that it does not require preparation of an Environmental
Assessment or Environmental Impact Statement in accordance with the
requirements of NEPA, Council on Environmental Quality (CEQ)
regulations, and FAA Order 1050.1F.

XX. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this proposed rule under the principles and
criteria of Executive Order 13132, Federalism. The agency has
determined that this action would not have a substantial direct effect
on the States, or the relationship

between the Federal Government and the States, or on the distribution
of power and responsibilities among the various levels of government,
and, therefore, would not have Federalism implications.

B. Executive Order 13211, Regulations That Significantly Affect Energy
Supply, Distribution, or Use

    The FAA analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). The agency has determined that it
would not be a ``significant energy action'' under the executive order
and would not be likely to have a significant adverse effect on the
supply, distribution, or use of energy.

C. Executive Order 13609, Promoting International Regulatory
Cooperation

    Executive Order 13609, Promoting International Regulatory
Cooperation, (77 FR 26413, May 4, 2012) promotes international
regulatory cooperation to meet shared challenges involving health,
safety, labor, security, environmental, and other issues and to reduce,
eliminate, or prevent unnecessary differences in regulatory
requirements.
    For significant regulations that the agency identifies as having
significant international impacts, the FAA has to consider, to the
extent feasible, appropriate, and consistent with law, any regulatory
approaches by a foreign government that the United States has agreed to
consider under a regulatory cooperation council work plan. A
significant regulatory action under Executive Order 13609 has the same
meaning as in section 3(f) of Executive Order 12866. An international
impact, as defined in Executive Order 13609, means ``a direct effect
that a proposed or final regulation is expected to have on
international trade and investment, or that otherwise may be of
significant interest to the trading partners of the United States.''
    As discussed in the International Compatibility and Cooperation
section of this proposed rule, in keeping with U.S. obligations under
the Convention on International Civil Aviation, the FAA seeks to
conform to International Civil Aviation Organization Standards and
Recommended Practices to the maximum extent practicable. The FAA has
reviewed the corresponding ICAO Standards and Recommended Practices and
has identified no differences with these regulations. Additionally, the
FAA regularly reaches out to its international partners on a bi-lateral
and multi-lateral basis to harmonize regulations to the maximum extent
possible. Thus, the FAA believes that the proposed rule should have no
effect on international regulatory cooperation.

XXI. Tribal Considerations

    Consistent with Executive Order 13175, Consultation and
Coordination with Indian Tribal Governments,\186\ and FAA Order
1210.20, American Indian and Alaska Native Tribal Consultation Policy
and Procedures,\187\ the FAA ensures that Federally Recognized Tribes
(Tribes) are given the opportunity to provide meaningful and timely
input regarding proposed Federal actions that have the potential to
affect uniquely or significantly their respective Tribes. At this
point, the FAA has not identified any unique or significant effects,
environmental or otherwise, on tribes resulting from this proposed
rule.
---------------------------------------------------------------------------

    \186\ 65 FR 67249 (Nov. 6, 2000).
    \187\ FAA Order No. 1210.20 (Jan. 28, 2004), available at http://www.faa.gov/documentLibrary/media/1210.pdf.
---------------------------------------------------------------------------

XXII. Privacy

    With regard to the information manufacturers and operators may
submit in accordance with this proposed rule's requirements, the FAA
conducted a privacy impact assessment (PIA) under section 522(a)(5) of
division H of the FY 2005 Omnibus Appropriations Act, Public Law 108-
447, 118 Stat. 3268 (Dec. 8, 2004) and section 208 of the E-Government
Act of 2002, Public Law 107-347, 116 Stat. 2889 (Dec. 17, 2002). The
PIA found the NPRM requirements that affect privacy include: the
registration of the UAS with the FAA, the transmission of data from the
UAS to Remote ID USS, the broadcast of data from standard remote
identification UAS to any person capable of receiving broadcasts, the
use of PII in the manufacturer's declaration of compliance, and the use
of PII in applications to establish FAA-recognized identification areas
for UAS flying.
    The PIA points to several mitigation strategies including: limiting
collection to only relevant and necessary PII, limiting the use of PII
to the specific purpose for which it was collected, using security
measures to protect PII collected, notifying individuals of collection
practices prior to collection, and the voluntary nature of all PII
submitted. Additionally, the FAA would enter into contractual
agreements with the Remote ID USS including directions for the use,
protection, and storage of the data. Section XIV discusses the data
security requirements the FAA intends to impose upon FAA-qualified
Remote ID USS. Although the message elements themselves would be
publicly accessible information, the ability to cross-reference that
information with registry data would not be publicly available and
would be limited to the FAA and law enforcement for security purposes.
    In the 2016 Rule, the FAA acknowledged various organizations' and
commenters' concerns regarding the use of small UAS to collect
information about individuals. In that rule, the FAA noted that privacy
concerns were beyond the scope of the FAA's mission to ensure safety
and efficiency of aviation operations in the airspace of the United
States, but discussed various methods by which the FAA intended to
continue addressing privacy concerns through engagement and
collaboration with the public, stakeholders, and other agencies with
authority and subject matter expertise in privacy law and policy.
    As part of the PIA, the FAA analyzed the effect the proposed rule
might have on collecting, storing, and disseminating personally
identifiable information (PII) of manufacturers and UAS operators. The
FAA also examined and evaluated protections and alternative
information-handling processes in developing the proposed rule to
mitigate potential privacy risks. A copy of the draft PIA is posted in
the docket for this rulemaking.\188\
---------------------------------------------------------------------------

    \188\ Upon finalization, PIAs are posted on the Department of
Transportation's Privacy Program page, available at https://www.transportation.gov/individuals/privacy/privacy-impact-assessments#Federal%20Aviation%20Administration%20(FAA).
---------------------------------------------------------------------------

XXIII. Additional Information

A. Comments Invited

    The FAA invites interested persons to participate in this
rulemaking by submitting written comments, data, or views. The agency
also invites comments relating to the economic, environmental, energy,
or federalism impacts that might result from adopting the proposals in
this document. The most helpful comments reference a specific portion
of the proposal, explain the reason for any recommended change, and
include supporting data. To ensure the docket does not contain
duplicate comments, commenters should send only one copy of written
comments, or if comments are filed electronically, commenters should
submit only one time.
    The FAA will file in the docket all comments it receives. Before
acting on this proposal, the FAA will consider all

comments it receives on or before the closing date for comments. The
agency may change this proposal in light of the comments it receives.

B. Confidential Business Information

    Confidential Business Information (CBI) is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552),
CBI is exempt from public disclosure. If your comments responsive to
this NPRM contain commercial or financial information that is
customarily treated as private, that you actually treat as private, and
that is relevant or responsive to this NPRM, it is important that you
clearly designate the submitted comments as CBI. Please mark each page
of your submission containing CBI as ``PROPIN.'' The FAA will treat
such marked submissions as confidential under the FOIA, and they will
not be placed in the public docket of this NPRM. Submissions containing
CBI should be sent to the person in the FOR FURTHER INFORMATION CONTACT
section of this document. Any commentary that the FAA receives which is
not specifically designated as CBI will be placed in the public docket
for this rulemaking.

C. Availability of Rulemaking Documents

    An electronic copy of rulemaking documents may be obtained from the
internet by:
     Searching the Federal eRulemaking Portal (http://www.regulations.gov);
     Visiting the FAA's Regulations and Policies at https://www.faa.gov/regulations_policies; or
     Accessing the Government Publishing Office at https://www.govinfo.gov.
    Copies may also be obtained by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue SW, Washington, DC 20591, or by calling<PHONE_NUMBER>.
Commenters must identify the docket or notice number of this
rulemaking.
    All documents the FAA considered in developing this proposed rule,
including economic analyses and technical reports, may be accessed from
the internet through the Federal eRulemaking Portal referenced above.

D. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) requires FAA to comply with small entity requests for
information or advice about compliance with statutes and regulations
within its jurisdiction. A small entity with questions regarding this
document may contact its local FAA official, or the person listed under
the FOR FURTHER INFORMATION CONTACT heading at the beginning of the
preamble. To find out more about SBREFA on the internet, visit https://www.faa.gov/regulations_policies/rulemaking/sbre_act/.

List of Subjects

14 CFR Part 1

    Air transportation.

14 CFR Part 47

    Aircraft, Reporting and recordkeeping requirements.

14 CFR Part 48

    Aircraft, Reporting and recordkeeping requirements.

14 CFR Part 89

    Aircraft, Airmen, Air traffic control, Aviation safety,
Incorporation by reference, Reporting and recordkeeping requirements,
Security measures.

14 CFR Part 91

    Air traffic control, Aircraft, Airmen, Aviation safety, Reporting
and recordkeeping requirements, Security measures.

14 CFR Part 107

    Aircraft, Airmen, Aviation safety, Security measures.

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend chapter I of title 14, Code of Federal
Regulations as follows:

PART 1--DEFINITIONS AND ABBREVIATIONS

0
1. The authority citation for part 1 is revised to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40113, 44701.

0
2. In Sec.  1.1, add the terms ``unmanned aircraft system,'' ``unmanned
aircraft system service supplier'' and ``visual line of sight'' in
alphabetical order to read as follows:

Sec.  1.1  General definitions.

* * * * *
    Unmanned aircraft system means an unmanned aircraft and its
associated elements (including communication links and the components
that control the unmanned aircraft) that are required for the safe and
efficient operation of the unmanned aircraft in the airspace of the
United States.
    Unmanned aircraft system service supplier means a person qualified
by the Administrator to provide aviation-related services to unmanned
aircraft systems.
* * * * *
    Visual line of sight means the ability of a person manipulating the
flight controls of the unmanned aircraft or a visual observer (if one
is used) to see the unmanned aircraft throughout the entire flight with
vision that is unaided by any device other than corrective lenses.
* * * * *
0
3. In Sec.  1.2, add the abbreviation ``USS'' in alphabetical order to
read as follows:

Sec.  1.2  Abbreviations and symbols.

* * * * *
    USS means an unmanned aircraft system service supplier.
* * * * *

PART 47--AIRCRAFT REGISTRATION

0
4. The authority citation for part 47 is revised to read as follows:

    Authority:  4 U.S.T. 1830; Public Law 108-297, 118 Stat. 1095
(49 U.S.C. 40101 note, 49 U.S.C. 44101 note); 49 U.S.C. 106(f),
106(g), 40113-40114, 44101-44108, 44110-44113, 44703-44704, 44713,
44809(f), 45302, 45305, 46104, 46301.

0
5. Add Sec.  47.14 to read as follows:

Sec.  47.14  Serial numbers for unmanned aircraft.

    The unmanned aircraft serial number provided as part of any
application for aircraft registration of a standard remote
identification unmanned aircraft or a limited remote identification
unmanned aircraft must be the serial number issued by the manufacturer
of the unmanned aircraft in accordance with the design and production
requirements of part 89.

PART 48--REGISTRATION AND MARKING REQUIREMENTS FOR SMALL UNMANNED
AIRCRAFT

0
6. The authority citation for part 48 is revised to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40101, 40103, 40113-40114,
41703, 44101-44103, 44105-44106, 44110-44113, 44809(f), 45302,
45305, 46104, 46301, 46306.

0
7. Revise Sec.  48.5 to read as follows:

Sec.  48.5  Compliance dates.

    (a) Except as provided in paragraph (b) or (c) of this section,
compliance with the requirements of this part or part 47 of this
chapter is required prior to operation of the small unmanned aircraft.
    (b) For small unmanned aircraft registered prior to [EFFECTIVE DATE

OF FINAL RULE], compliance with the requirements of this part or part
47 of this chapter is required no later than [COMPLIANCE DATE 36 MONTHS
FROM EFFECTIVE DATE OF FINAL RULE] or upon renewal of the registration,
whichever is sooner.
    (c) For small unmanned aircraft registered exclusively as model
aircraft prior to [EFFECTIVE DATE OF THE FINAL RULE], compliance with
the requirements of this part or part 47 of this chapter is required no
later than [COMPLIANCE DATE 36 MONTHS FROM THE EFFECTIVE DATE OF THE
FINAL RULE] or upon renewal of the registration, whichever is sooner.
0
8. In Sec.  48.15, revise paragraph (b) to read as follows:

Sec.  48.15  Requirement to register.

* * * * *
    (b) The aircraft is used exclusively for limited recreational
operations and weighs 0.55 pounds or less on takeoff, including
everything that is on board or otherwise attached to the aircraft; or
* * * * *
0
9. Revise Sec.  48.30 to read as follows

Sec.  48.30  Fees.

    The fee for issuing or renewing a Certificate of Aircraft
Registration for aircraft registered in accordance with Sec.  48.100 is
$5.00 per aircraft. Each application for and renewal of a Certificate
of Aircraft Registration must be accompanied by the fee, paid to the
Federal Aviation Administration through the web-based small unmanned
aircraft registration system, or in another manner if prescribed by the
Administrator.
0
10. Revise Sec.  48.100 to read as follows:

Sec.  48.100  Application.

    (a) Required information. Each applicant for a Certificate of
Aircraft Registration issued under this part must submit all of the
following information to the Registry:
    (1) Applicant name and, for an applicant other than an individual,
the name of the authorized representative applying for a Certificate of
Aircraft Registration.
    (2) Applicant's physical address and, for an applicant other than
an individual, the physical address for the authorized representative.
If the applicant or authorized representative does not receive mail at
their physical address, a mailing address must also be provided.
    (3) Applicant's email address or, for applicants other than
individuals, the email address of the authorized representative.
    (4) Applicant's telephone number(s).
    (5) The aircraft manufacturer and model name.
    (6) For any standard remote identification unmanned aircraft or
limited remote identification unmanned aircraft, the serial number
issued by the manufacturer of the unmanned aircraft in accordance with
the design and production requirements of part 89.
    (7) Other information as required by the Administrator.
    (b) Provision of information. The information identified in
paragraph (a) of this section must be submitted to the Registry through
the web-based small unmanned aircraft registration system in a form and
manner prescribed by the Administrator.
    (c) Issuance of Certificate of Aircraft Registration. The FAA will
issue a Certificate of Aircraft Registration upon completion of the
application requirements provided in paragraph (a) of this section.
0
11. In Sec.  48.110, revise the section heading and paragraph (a) to
read as follows:

Sec.  48.110  Aircraft Registration.

    (a) Certificate of Aircraft Registration. A Certificate of Aircraft
Registration issued in accordance with Sec.  48.100 constitutes
registration only for the small unmanned aircraft identified on the
application.
* * * * *

Sec.  48.115   [Reserved]

0
12. Remove and reserve Sec.  48.115.
0
13. Amend Sec.  48.200 by revising paragraphs (b)(1) and (2) to read as
follows:

Sec.  48.200  General.

* * * * *
    (b) * * *
    (1) The registration number issued by the Administrator upon
completion of the registration process provided by this part; or
    (2) If authorized by the Administrator, the small unmanned aircraft
serial number provided with the application for Certificate of Aircraft
Registration under Sec.  48.100.
0
14. Add part 89 to subchapter F to read as follows:

PART 89--REMOTE IDENTIFICATION OF UNMANNED AIRCRAFT SYSTEMS

Subpart A--General
Sec.
89.1 Definitions.
89.5 Falsification, reproduction, alteration, or omission.
Subpart B--Operating Requirements
89.101 Applicability.
89.105 Remote identification requirement.
89.110 Standard remote identification unmanned aircraft systems.
89.115 Limited remote identification unmanned aircraft systems.
89.120 Unmanned aircraft systems without remote identification.
89.125 Automatic Dependent Surveillance-Broadcast (ADS-B) Out
prohibition.
89.130 Confirmation of identification.
89.135 Record retention.
Subpart C--FAA-Recognized Identification Areas
89.201 Applicability.
89.205 Eligibility.
89.210 Requests for establishment of an FAA-recognized
identification area.
89.215 Approval of FAA-recognized identification areas.
89.220 Amendment.
89.225 Duration of an FAA-recognized identification area.
89.230 Expiration and termination.
Subpart D--Requirements for Unmanned Aircraft Systems with Remote
Identification
89.301 Applicability.
89.305 Minimum message elements broadcast and transmitted by
standard remote identification unmanned aircraft systems.
89.310 Minimum performance requirements for standard remote
identification unmanned aircraft systems.
89.315 Minimum message elements transmitted by limited remote
identification unmanned aircraft systems.
89.320 Minimum performance requirements for limited remote
identification unmanned aircraft systems.
Subpart E--Means of Compliance
89.401 Applicability.
89.405 Submission of a means of compliance for FAA acceptance.
89.410 Acceptance of a means of compliance.
89.415 Rescission.
89.420 Record retention.
Subpart F--Design and Production of Unmanned Aircraft Systems With
Remote Identification
89.501 Applicability.
89.505 Serial numbers.
89.510 Production requirements.
89.515 Labeling.
89.520 Submission of a declaration of compliance for FAA acceptance.
89.525 Acceptance of a declaration of compliance.
89.530 Rescission and reconsideration.
89.535 Record retention.

    Authority: 49 U.S.C. 106(f), 106(g), 40101(d), 40103(b), 44701,
44805, 44809(f), Section 2202 of Pub. L. 114-190.

Subpart A--General

Sec.  89.1  Definitions.

    The following definitions apply to this part. If there is a
conflict between the definitions of this part and the

definitions specified in Sec.  1.1 of this chapter, the definitions in
this part control for purposes of this part:
    Amateur-built unmanned aircraft system means an unmanned aircraft
system the major portion of which has been fabricated and assembled by
a person who undertook the construction project solely for their own
education or recreation.
    Broadcast means to send information from an unmanned aircraft using
radio frequency spectrum.
    Remote ID USS means a USS qualified by the Administrator to provide
remote identification services.

Sec.  89.5  Falsification, reproduction, alteration, or omission.

    (a) No person may make or cause to be made:
    (1) Any fraudulent or intentionally false statement in any document
related to any acceptance, application, approval, authorization,
certificate, declaration, designation, qualification, record, report,
request for reconsideration, or similar, submitted under this part.
    (2) Any fraudulent or intentionally false statement in any document
required to be developed, provided, kept, or used to show compliance
with any requirement under this part.
    (3) Any reproduction or alteration, for fraudulent purpose, of any
document related to any acceptance, application, approval,
authorization, certificate, declaration, designation, qualification,
record, report, request for reconsideration, or similar, submitted or
granted under this part.
    (b) No person may, by omission, knowingly conceal or cause to be
concealed, a material fact in:
    (1) Any document related to any acceptance, application, approval,
authorization, certificate, declaration, designation, qualification,
record, report, request for reconsideration, or similar, submitted
under this part.
    (2) Any document required to be developed, provided, kept, or used
to show compliance with any requirement under this part.
    (c) The commission by any person of an act prohibited under
paragraphs (a) or (b) of this section is a basis for:
    (1) Denial, suspension, rescission, or revocation of any
acceptance, application, approval, authorization, certificate,
declaration, declaration of compliance, designation, document, filing,
qualification, means of compliance, record, report, request for
reconsideration, or similar instrument issued or granted by the
Administrator and held by that person; or
    (2) A civil penalty.

Subpart B--Operating Requirements

Sec.  89.101  Applicability.

    This subpart applies to the following:
    (a) Persons operating unmanned aircraft registered or required to
be registered under part 47 or part 48 of this chapter.
    (b) Persons operating foreign civil unmanned aircraft in the United
States.

Sec.  89.105  Remote identification requirement.

    Except as otherwise authorized by the Administrator, after
[COMPLIANCE DATE 36 MONTHS FROM EFFECTIVE DATE OF FINAL RULE], no
person may operate an unmanned aircraft system within the airspace of
the United States unless the operation is conducted under one of the
following conditions:
    (a) The unmanned aircraft system is a standard remote
identification unmanned aircraft system and that person complies with
the requirements of Sec.  89.110.
    (b) The unmanned aircraft system is a limited remote identification
unmanned aircraft system and that person complies with the requirements
of Sec.  89.115.
    (c) The unmanned aircraft system does not have remote
identification equipment and that person complies with the requirements
of Sec.  89.120.

Sec.  89.110  Standard remote identification unmanned aircraft systems.

    A person operating a standard remote identification unmanned
aircraft system is responsible for complying with this section.
    (a) Remote identification. Unless otherwise authorized by the
Administrator, a person may operate a standard remote identification
unmanned aircraft system only if the unmanned aircraft system sends the
remote identification message elements of Sec.  89.305, from takeoff to
landing, in one of the following ways:
    (1) If the internet is available at takeoff, a standard remote
identification unmanned aircraft system must:
    (i) Connect to the internet and transmit the message elements
through that internet connection to a Remote ID USS; and
    (ii) Broadcast the message elements directly from the unmanned
aircraft.
    (2) If the internet is unavailable at takeoff, or if during the
flight, the unmanned aircraft system can no longer transmit through an
internet connection to a Remote ID USS, the standard remote
identification unmanned aircraft system must broadcast the message
elements directly from the unmanned aircraft.
    (b) In-flight loss of broadcast capability. Unless otherwise
authorized by the Administrator, the person manipulating the flight
controls of the aircraft must land as soon as practicable if a standard
remote identification unmanned aircraft system can no longer broadcast
the message elements of Sec.  89.305.
    (c) Operation of standard remote identification unmanned aircraft
systems. Unless otherwise authorized by the Administrator, a person may
operate a standard remote identification unmanned aircraft system only
if it meets the following requirements:
    (1) Its serial number is listed on an FAA-accepted declaration of
compliance.
    (2) Its remote identification equipment is functional and complies
with the requirements of this part from takeoff to landing.
    (3) Its remote identification equipment and functionality have not
been disabled.

Sec.  89.115  Limited remote identification unmanned aircraft systems.

    A person operating a limited remote identification unmanned
aircraft system is responsible for complying with this section.
    (a) Remote identification. Unless otherwise authorized by the
Administrator, a person may operate a limited remote identification
unmanned aircraft system only if, from takeoff to landing:
    (1) The unmanned aircraft system connects to the internet and
transmits the remote identification message elements of Sec.  89.315
through that internet connection to a Remote ID USS.
    (2) The unmanned aircraft system is operated within visual line of
sight.
    (b) In-flight loss of remote identification. Unless otherwise
authorized by the Administrator, the person manipulating the flight
controls of the unmanned aircraft must land as soon as practicable if a
limited remote identification unmanned aircraft system in-flight can no
longer transmit the message elements of Sec.  89.315 to a Remote ID
USS.
    (c) Operation of limited remote identification unmanned aircraft
systems. Unless otherwise authorized by the Administrator, a person may
operate a limited remote identification unmanned aircraft system only
if it meets the following requirements:
    (1) Its serial number is listed on an FAA-accepted declaration of
compliance.
    (2) Its remote identification equipment is functional and complies
with the requirements of this part from takeoff to landing.

    (3) Its remote identification equipment and functionality have not
been disabled.

Sec.  89.120   Unmanned aircraft systems without remote identification.

    A person may operate an unmanned aircraft system that does not meet
the requirements for a standard remote identification unmanned aircraft
system under Sec.  89.110 or a limited remote identification unmanned
aircraft system under Sec.  89.115 only if the requirements of (a) or
(b) are met.
    (a) Operations at FAA-recognized identification areas. Unless
otherwise authorized by the administrator:
    (1) The unmanned aircraft system is operated within visual line of
sight.
    (2) The unmanned aircraft system is operated within an FAA-
recognized identification area.
    (b) Operations for aeronautical research. The person is authorized
by the administrator to operate the unmanned aircraft system without
remote identification for the purpose of aeronautical research or to
show compliance with regulations.

Sec.  89.125  Automatic Dependent Surveillance-Broadcast (ADS-B) Out
prohibition.

    Automatic Dependent Surveillance-Broadcast (ADS-B) Out equipment
required under subpart C of part 91 of this chapter may not be used to
comply with the remote identification requirements of this part.

Sec.  89.130  Confirmation of identification.

    (a) Notification requirement. No person may operate a foreign
registered civil unmanned aircraft in the United States unless, prior
to the operation, the person submits a notice of identification in a
form and manner acceptable to the Administrator. The notice of
identification must include:
    (1) The name of the operator and, for an operator other than an
individual, the name of the authorized representative providing the
notification.
    (2) The physical address of the operator and, for an operator other
than an individual, the physical address for the authorized
representative. If the operator or authorized representative does not
receive mail at the physical address, a mailing address must also be
provided.
    (3) The physical address of the operator in the United States.
    (4) The telephone number(s) where the operator can be reached while
in the United States.