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Hearingon

Drones:TheNextGenerationofCommerce?

Beforethe

CommitteeonOversightandGovernmentReformUnitedStatesHouseofRepresentatives

June17,2015

Testimonyof

PaulMisener

VicePresidentforGlobalPublicPolicyAmazon.com

Thankyou,ChairmanChaffetzandRankingMemberCummings.MynameisPaulMisener,andI

am Amazons Vice President for Global Public Policy. Drones will provide the next generation ofcommercial delivery service, when permitted, so policymakers should expeditiously adopt rules ofoperationthatemphasizedronesafetyandsystemperformance. Thankyouforyourattentiontothisimportanttopic;forcallingthishearing;andforinvitingmetotestify.I. AmazonPrimeAir AmazonPrimeAirisafutureservicethatwilldeliverpackagesofuptofivepoundstocustomersin30minutesor lessusingsmalldrones,alsoknownasunmannedaircraftsystemsorUAS. Flyingbeyond lineofsightunder500feet,andgenerallyabove200 feetexcept fortakeoffand landing,andweighing less than55pounds total,PrimeAirsmallUASvehicleswill takeadvantageofsophisticated

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senseandavoidtechnology,aswellasahighdegreeofautomation,tosafelyoperateatdistancesof10milesormore,wellbeyondvisuallineofsight.

Notonlydowethinkourcustomerswilllovethisservice,webelieveitwillbenefitsocietymorebroadly.Onceoperational,PrimeAirwillincreasetheoverallsafetyandefficiencyofthecurrentgroundtransportation system,byallowingpeople to skip thequick trip to the storeorby reducingpackagedeliveriesbytruckorcar.Forthesamereasons,PrimeAirwillreducebuyersenvironmentalfootprint:Ifaconsumerwantsasmallitemquickly,insteadofdrivingtogoshoppingorcausingdeliveryautomobilestocometoherhomeoroffice,asmall,electricallypoweredUASvehiclewillmakethetripfasterandmoreefficientlyandcleanly.

AmericancommercialentitiesareinnovatingandperfectingsmallUAS(sUAS)technology,andtodosoweareconductingresearchanddevelopmenttesting.AmazonhasalargeindoorR&DfacilityinSeattle.Inthisfacility,ourPrimeAirteam(includingroboticists,scientists,aeronauticalengineers,remotesensingexperts,andevenaformerNASAastronaut)continuestoconductflighttestsonrapidlyimprovingdesigns. Butofcoursewealsoneed tosafely test thesedesignsoutdoors,exposed to therealworldconditions thatour sUAS eventuallywillexperience inoperationsnamely,wind, turbulence, and avarietyoftemperatures,humidity,andprecipitation. AmazonPrimeAirhasbeenconductingoutdoorR&DflighttestinginmultiplelocationsabroadaswellasintheUnitedStates,wheretheFederalAviationAdministration(FAA)hastakenstepstostreamlinegrantsofrequiredapprovals.Ourtestingisgoingwell,andweareverypleasedwiththeR&Dprogressithasenabled.

In addition toourR&Dwork,we alsowillprepareourdistributionnetwork for the eventualintegrationofPrimeAirdeliveryservice.Preparationwillincludeoptimizingourinternalsystemsbecause,inordertomeetourPrimeAircustomerdeliverygoalof30minutesor less,oursUASmustbe loadedquickly,andthispresentsfascinatinglogisticalchallenges,includingwithinourhugewarehouses.

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II. PublicPolicyNeedsNo country in which we have distribution facilities has yet adopted rules that would allow

commercialUAS package deliveries. So, in addition to our Prime Air R&D; testing; and distributionnetworkpreparations,weareworkingwithgovernmentagenciestodevelopappropriaterulesforsmallUASoperations. SuchrulesmustallowsUASoperationstotakeadvantageofacorecapabilityofUAStechnology:toflywithminimalhumaninvolvement,beyondthevisuallineofsightofahumanoperator.Suchrulesofoperationshouldbeproportionatetorisk,settingalevelofsafetybutnotmandatinghowthatlevelmustbemet.

SafetyisAmazonstoppriorityatopprioritythatIknowwesharewiththeFAAandwearecommittedtomitigatingthesafetyrisksofmidaircollisionsandcrashestotheground.InitsNoticeofProposedRulemaking(NPRM)onsUAS,releasedearlierthisyear,theFAAemphasizedconcernswiththelackofhumanseeandavoidabilitiesandthehazardofgroundtoaircommunicationslinkloss.Bothofthesefactorswouldhavebeendifficulttoaddressevenjustadecadeago,butautomatedsUASsenseandavoidtechnologyandvehicleonboardintelligencewillinpracticeaddressthesefactorsandmitigatetherelatedrisks.

KeyaviationauthoritiesoutsidetheUnitedStatesarerapidlypursuingregulatoryframeworksandoperational rules forUAS. Their approach is risk and performancebased, and it ismindful of thetremendous opportunities for innovation and economic benefits that UAS present. The EuropeanCommission (EC), forexample,has concluded thatUASvehicles shouldbe treatedasnew typesofaircraft with proportionate rules based on the risk of the operation (rules should be simple andperformance based). The EC also said that rules must be developed now (the basic regulatoryframeworkshouldbeputinplacewithoutdelay);thattechnologiesandstandardsneedtobedevelopedforthefull integrationofUAS intheairspace;andthattheEuropeanAviationSafetyAgency (EASA)

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shouldleadtheharmonizationofUASregulationacrossEurope.Foritspart,EASAalreadyhasannouncedthat:

Theoperationofdronesshouldberegulatedinamannerproportionatetotheriskofthespecificoperation. Considering thebroad rangeofoperationsand typesofdrones, it isproposed toestablish3categoriesofoperationsandtheirassociatedregulatoryregime.Thisconcepthasbeendevelopedtoaddresstwomaingoals: (a) Integrationandacceptanceofdrones intotheexistingaviationsysteminasafeandproportionatemanner;[and](b)FosteraninnovativeandcompetitiveEuropeandroneindustry,creatingnewemployment,inparticularforSMEs.HereintheUnitedStates,theFAAalsoistakingitsUASresponsibilitiesseriously,andAmazonis

gratefulfortheattentiontheagencyisgivingtothisnew,innovativetechnology.TheFAAssUASNPRMisastepforwardas itspeakstotheneedforaperformancebasedapproachtorulemaking. Wefullyagreewiththisapproach.

At the same time, the NPRM has shortcomings mostly because some of the prohibitionsmaintainedarenotactuallyperformancebasedand,ifadoptedasdrafted,theruleswouldnotestablisharegulatoryframeworktopermitPrimeAiroperationsintheUnitedStates.Giventhepaceatwhichthistechnologyisadvancing,theFAAsproposedrulesshouldmorefullyembraceandembodyperformancebasedregulationthatisflexibleenoughtokeepupwithadvancementsintechnology.Morespecifically,werespectfullydisagreewiththeFAAscurrentopinionthatextendingseeandavoidprinciplestosmallUAS,aswellasthepotentiallossofpositivecontrolofsmallUAS,presentuniquesafetyconcerns,whichtherebywarrantdelayedconsideration.Althoughthesesafetyconcernspresentparticularengineeringchallenges,tobesure,suchchallengesarenotqualitativelydifferentfromotherengineeringchallengesfacingsmallUASdesigners,sotheyshouldbeassessedstartingnow,ultimatelyresultinginperformancebasedoperatingpermissions.Overlyprescriptiverestrictionsarelikelytohavetheunintendedeffectofstiflinginnovationand,overtime,willfailtoofferanycorrespondingsafetybenefitassUAStechnologyevolves. By contrast, genuineperformancebased regulationwouldprovide a flexible framework for

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operatorstodemonstratethatthesetypesofoperationscanbeconductedsafely.Insum,theFAAshouldconsistently adopt a performancebased approach throughout its sUAS rules, and thereby notunnecessarilylimitthepromisingbenefitsofsmallUAStechnology.

AwelcomeintermediatedevelopmentistheFAAsrecentlyannouncedPathfinderprojectwithBNSFrailroadthatisdesignedtoconductresearchtohelpdeterminehowtosafelyflybeyondvisuallineofsight. Othersimilarresearch initiativesalsowouldhelptheFAAbecomefamiliarwithandevaluateUAS,butshouldnotdelayordistractfromexistingavenuesforprogress.Onesuchavenueisuncertainbecause,althoughtheFAAhasaskedaworkinggroupofoneof its industryadvisorycommitteestoexamineUASoperationsbeyondvisuallineofsight(andIamamemberofthisworkinggroup),ithasmetonlytwicesinceitsinceptionlastyear,andnotevenoncein2015. Thispaceis inadequate,ofcourse,especiallycomparedtotheregulatoryefforts inothercountries. Granted,regulatorshereandabroadcannotquicklyadoptactualrulesforoperationsbeyondvisual lineofsight. Thatmaytaketime. ButAmericanpolicymakersshouldquicklyproposeregulatoryframeworksandrulesforfuturecommercialsUASoperations.III. OpportunitiesforFAAandCongressionalAction

TheUnitedStatesshouldimmediatelybegintoplananddeveloprulesforsUASoperationsthatwouldencompasshighlyautomated flight,beyondvisual lineofsight. Amazonbelieves that theFAAshould act expeditiously, and asks that Congress provide legislative guidance to the agency and, ifnecessary,provideadditionallegalauthority.

Firstandforemost,sUASregulationsmustberiskandperformancebased.Thatis,sUASrulesshouldtakeintoaccounttherisksofoperations(including,e.g.,theabsenceofpassengersandcrew,thelowerkineticenergyofaircraft,andtheverylowoperatingaltitude)andevaluatehowUASperformance

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mitigatestheserisks.Categoricalprohibitions(e.g.,nonighttimeoperations,nooperationsbeyondvisuallineofsight)makenosenseandmustbeavoided.Importantly,sUASwithincreasedtechnicalcapabilitiestodetectandavoidaircraft,structures,andotherobstaclesshouldbepermittedtooperatebeyondvisuallineofsight.Likewise,highlyautomatedUASvehiclesshouldbeallowedtoflyiftheymeetperformancebasedsafetyrequirements,andthusasinglesUASoperatorshouldbeallowedtooverseesimultaneousoperation ofmultiple highlyautomated sUAS vehicles. Also,UAS should be permitted to transportproperty,includingasanexternalload,forcompensation. Four other important considerationsmerit attention fromU.S. policymakers. First, the FAA,working with industry and other parties, such as NASA, should develop a regulatory structure forcommercialandothersUASoperationsatlowaltitudes,say,below500feetaboveground.Second,giventheinterstatenatureofcommercialsUASoperations,statesandlocalitiesmustnotbeallowedtoregulatesUAS that theFAAhasauthorized, includingwithrespect toairspace,altitude,purposeofoperations,performance, and operator qualifications. Uniform federal rules must apply. Third, and similarly,internationally harmonized rules are highly desirable, and ideally would be developed throughmultinationalaviationbodieslikeJARUS(theJointAuthoritiesforRulemakingonUnmannedSystems)orICAO(theInternationalCivilAviationOrganization).SuchharmonizationshouldbeanFAApriority.Andfourth,commercialwirelessspectrum,bothlicensedandunlicensed,andcommercialwirelessnetworks,managedbycommercialwirelesscarriers,mustbedeemedadequateforsUAScommunicationsfunctions,includingforcontrollinks,collisionavoidance,diagnostics,andpayloadcommunications. OneotherconsiderationmayrequireCongresstoprovidemorethanguidance toagencies. IfsUAS operators were ever considered air carriers, some statutory ownership restrictions may beimpossibleforoperatorstomeet.

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ConsumerprivacyisanareainwhichtheU.S.approachtoUASregulationalreadyisparticularlystrong.UAStechnologycouldcauseprivacyinfringementifcommercialoperationsarenotundertakeninasensible,privacyconsciousmanner.PrimeAirisafuturedeliveryservice,notasurveillanceoperation,andwewillrespecttheprivacyofeveryperson,withstringentprivacypoliciesaccessibletoall.AmazoniscommittedtoensuringthatthecollectionanduseofinformationforPrimeAirisconsistentwithourcustomercentric values. We strongly support the effort of the National Telecommunications andInformationAdministration(NTIA)todevelop,throughamultistakeholderprocess,bestpracticesonprivacy, transparency, and accountability, and we look forward to working with NTIA and otherstakeholderstoensurethatconsumerprivacyisprotectedastheconsumerbenefitsofinnovativeUAStechnologybecomeavailable.IV. Conclusion

Inconclusion,Mr.Chairman,Ilookforwardtoworkingwithyou,yourCommittee,andtheFAAtohelptheUnitedStatesexpeditiouslyadoptrulesforsUASoperationsthatemphasizesafetyandsystemperformance,therebypermittingdronestoprovideAmericansthenextgenerationofcommercialdeliveryservicesafelyandsoon.Thankyou.Iwelcomeyourquestions.

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Paul E. Misener Vice President, Global Public Policy

Amazon

Paul Misener is Amazon.coms Vice President for Global Public Policy, and has served in this position for 15 years. Both an engineer (B.S., Electrical Engineering and Computer Science, Princeton University, 1985) and lawyer (J.D., George Mason University, 1993; Distinguished Alumni Award, 2001), he is responsible for formulating and representing the companys public policy positions worldwide, as well as for managing public policy specialists in Asia, Europe, and the Americas. Formerly a partner in the law firm of Wiley, Rein & Fielding, Paul also served as Senior Legal Advisor to a Commissioner of the U.S. Federal Communications Commission (FCC). Prior to this government service, he was Intel Corporations Manager of Telecommunications and Computer Technology Policy, and leader of the computer industrys Internet Access Coalition. In the late 1980s, Paul was a policy specialist for the U.S. Department of Commerces National Telecommunications and Information Administration, where he was a U.S. delegate to several conferences of the ITU. Prior to that, he designed radio communications systems. In 2013, he chaired the technical subcommittee of the FAAs advisory committee on airplane passenger use of portable electronics. He currently serves on the FCCs technological advisory council and the FAAs beyond visual line of sight UAS (drones) working group.

Committee on Oversight and Government Reform Witness Disclosure Requirement Truth in Testimony

Required by House Rule XI, Clause 2(g)(5)

Name:

1. Please list any federal grants or contracts (including subgrants or subcontracts) you have received since October 1, 2012. Include the source and amount of each grant or contract.

2. Please list any entity you are testifying on behalf of and briefly describe your relationship with these entities.

3. Please list any federal grants or contracts (including subgrants or subcontracts) received since October 1, 2012, by the entity(ies) you listed above. Include the source and amount of each grant or contract.

I certify that the above information is true and correct. Signature: Date:

Paul E. Misener

None

AmazonVice President, Global Public Policy

None

June 12, 2015Paul E. Misener

Amazon Misener HOGR Testimony 061715 revPaul Misener Bio 2Q15TIT P. Misener 6-12-15