THE INTEGRATION OF DRONE USE INTO VARIOUS INDUSTRIES
By Grant J. Guillot and Claire Grega
Introduction
The Federal Aviation Administration’s Small Drone Rule of 2016 largely relaxed the restrictions prohibiting commercial drone use. Since that time, industries operating across the United States have been increasingly incorporating unmanned aircraft systems (“UAS”) (known colloquially as “drones”) into their respective operations. The growing prevalence of drone usage across industries has implications nationwide, and Florida is no exception. If Florida businesses plan to integrate drones into their strategic plans, understanding the overarching regulatory frameworks and implications for usage are crucial for industry success.
Industry Use
Drone use has many benefits across industries. Drones can reduce costs, promote safety, streamline operations, and be adapted for many purposes such as inspections, videography and photography, placement of devices, delivery of products (including vital organs and medical supplies, such as COVID-19 tests), and distribution of chemicals. They are used in agriculture, construction, forestry, mining, and surveying projects. Drone use is also prevalent in the energy, telecommunications, maritime, and transportation sectors. In addition, drones can record data for insurance claims, real estate, and warehousing purposes alike. However, obstacles threaten to impede the integration of drones into various sectors. Perhaps the two greatest challenges facing commercial drone utilizations are the complex regulatory environment and public perception issues pertaining to drones.
Regulatory Framework
While federal law provides the U.S. government with exclusive sovereignty over national airspace, courts have consistently held that this does not expressly preclude the sovereign powers of states. Therefore, drone users must comply with not only federal laws when operating drones, but also state and local regulations in their area. Pursuant to 14 C.F.R. 107 (“Part 107”), businesses may operate a drone for commercial purposes in many instances, though certain restrictions apply. For example, drones are required to (1) remain within the line of sight of the pilot in command; (2) be operated by a live pilot; (3) not be operated by a pilot who is simultaneously operating another drone; (4) not be operated from a moving vehicle; (5) not be operated during night; and (6) not be operated over human beings, unless authorized by Part 107. Companies can apply for a Part 107 Waiver to exempt drones from certain operational requirements in order to maximize return on investment. In addition, drone delivery operations can be performed either under Part 107 (with substantial restrictions) or pursuant to 14 C.F.R. 135 (“Part 135”), which entails a rigorous certification process.
Impediments to Ubiquitous Drone Use
Despite the authority invested in the FAA to regulate commercial drone use, the federal government has acknowledged that it is limited in its ability to govern some aspects of drone utilization. States, in contrast, have broad powers to regulate issues raised by commercial drone utilization, such as matters involving privacy, crime, and public safety. State and local government decision-makers across the country have been encouraged to work with federal government leaders and industry stakeholders to facilitate commercial drone operations and remove barriers that threaten to curtail the progression of the industry.
In addition to regulatory obstacles, public perception of drones, particularly as it relates to privacy and safety, also threatens to curtail to ubiquitous integration of drones into the U.S. airspace. Public perception of the safety of drones also bears on how seamlessly–and how quickly, drones will be widely incorporated into everyday life. Advances in unmanned aircraft system traffic management services and remote identification technology have the potential to shift public perception of drones in favor of acceptance of commercial drone utilization.
Conclusion
Commercial utilization of drones in Florida and the rest of the U.S. is positioned to increase exponentially over the next few years as numerous industries discover innovative ways to cut costs, reduce risks, and increase efficiency using UAS technology. Furthermore, the public stands to benefit from the convenience of drone deliveries as well as the life-saving public safety benefits drones are uniquely capable of providing. As drones are increasingly utilized in various industries, government stakeholders, drone service providers, and end users must continue to work together to provide advocacy and education for society to achieve the maximum benefits of commercial drone use.
About the Authors: Grant J. Guillot and Claire Grega
A partner and leader of the Unmanned Aircraft Systems Practice Team at the law firm of Adams and Reese, LLP, Grant J. Guillot advises companies that provide drone/unmanned aircraft system (UAS) services, as well as companies operating in industries that are increasingly using drones, such as construction, energy/oil & gas, forestry and agriculture, public safety, telecommunications, and transportation & logistics. He regularly represents clients in contractual matters between UAS companies and businesses seeking to retain UAS operators. Grant assists commercial drone users with the concurrent navigation of federal, state and local UAS regulations. He also advocates on behalf of businesses and trade associations before legislative and executive decision makers at the state and local levels to promote a favorable and effective regulatory environment for UAS operations. In addition, Grant assists businesses with crafting and implementing strategies to achieve maximum cost efficiency and risk reduction through the use of UAS. Grant is also the host of “Drones in America”, a weekly podcast produced by MarketScale that features industry leaders, influencers and experts who explore the rapidly growing commercial drone industry in the U.S. and examine the complex web of technology, policy and other considerations.
Claire Grega, a J.D. candidate at the Case Western Reserve University School of Law, is a Summer Associate at Adams and Reese, LLP, working in regulatory law, government relations, litigation, and compliance matters. Prior to entering law school at Case Western Reserve University, Claire worked for the Obama administration in the White House and in the United States Senate for U.S. Senator Sherrod Brown. She spent her first summer after her first year of law school working for Judge Donald C. Nugent in the United States District Court for the Northern District of Ohio. Claire uses this institutional knowledge gleaned in all three branches of government as an asset when analyzing complex situations.