FAA’s Landmark BVLOS Proposal Could Transform U.S. Drone Industry

The U.S. commercial drone industry is on the cusp of its most significant regulatory shift to date. On Tuesday, August 5, the Federal Aviation Administration (FAA) officially published its long-anticipated Notice of Proposed Rulemaking (NPRM) for Beyond Visual Line of Sight (BVLOS) drone operations—ushering in a comprehensive framework that could finally move drone flight from tightly restricted waivers to scalable, routine operations across sectors like package delivery, agriculture, infrastructure inspection, and public safety.

Announced by U.S. Transportation Secretary Sean P. Duffy during a live-streamed press conference, the proposal spans over 700 pages and arrives after years of industry anticipation, regulatory delays, and mounting pressure to modernize drone oversight.

“We are making the future of our aviation a reality and unleashing American drone dominance,” Duffy said. “This technology will fundamentally change the way we interact with the world—from drones delivering medicine to unmanned aircraft surveying crops.”

From Friction to Framework

Until now, U.S. drone pilots seeking to fly BVLOS faced a frustrating gauntlet of individual waivers or exemptions—a process described as bureaucratic and inefficient, especially as drone hardware and software capabilities surged ahead.

“Our new rule will reform outdated regulations that were holding innovators back while also enhancing safety in our skies,” added Duffy.

With this NPRM, the FAA proposes a shift to a performance-based system that offers two clear pathways for approval, depending on operational complexity. These changes are expected to unlock commercial drone applications at scale, replacing a regulatory bottleneck with predictable and scalable procedures.

What the Rule Enables

According to the FAA’s official fact sheet, the new framework authorizes BVLOS operations for:

• Package delivery

• Precision agriculture

• Public safety operations

• Infrastructure and aerial surveying

• Recreation

• Flight testing

Flights would be capped at 400 feet above ground level, originate from pre-designated, access-controlled launch locations, and occur only in FAA-approved operational areas with clearly defined boundaries, flight volumes, and daily activity limits.

These zones must also include procedures for maintaining communications, mitigating failures, and lost link protocols, reinforcing a focus on both airspace and network safety.

Automating Airspace Awareness

One of the most significant provisions is the required use of Automated Data Service Providers (ADSPs)—FAA-vetted entities that facilitate airspace coordination and deconfliction between drones and crewed aircraft. ADSPs would provide data services to help operators maintain safe separation, especially as BVLOS operations scale.

Operators may serve as their own ADSP or contract with external providers. These services—akin to air traffic control for unmanned flights—would rely on detect-and-avoid (DAA) technology, onboard sensors, and Remote ID signals to safely integrate drones into the National Airspace System.

Streamlining Certification and Reducing Barriers

A major departure from traditional aviation oversight is the FAA’s proposal to waive conventional airworthiness certification for drones under 1,320 pounds (including payload). Instead, the agency would accept compliance based on industry consensus standards, reducing regulatory friction for manufacturers and developers.

This change could dramatically cut costs and timelines for drone developers, while still holding them accountable for meeting safety benchmarks through standard-setting organizations.

“Normalizing BVLOS flights is key to realizing drones’ societal and economic benefits,” said FAA Administrator Bryan Bedford.

Two-Tiered Authorization: Permits and Certificates

The NPRM introduces a dual pathway for regulatory authorization:

• Permits: Intended for lower-risk, limited-scale operations (e.g., small delivery fleets), these can be granted rapidly with fewer administrative hurdles.

• Certificates: Required for higher-risk or larger-scale operations, these demand comprehensive safety protocols, operations oversight, and security compliance.

Certified operators must designate two key roles:

• Operations Supervisor: Oversees safety, regulatory compliance, and security.

• Flight Coordinator: Manages operational personnel and ensures that TSA-level security checks (including fingerprinting and watchlist screening) are conducted where required.

Importantly, neither role requires an FAA-issued pilot certificate—lowering the barrier to compliance while still ensuring qualified oversight.

Security, Cybersecurity, and TSA Integration

This proposal is also the first to deeply integrate the Transportation Security Administration (TSA) into commercial drone oversight. All BVLOS operators—regardless of size—must develop comprehensive security and cybersecurity policies, addressing:

• Physical access control to launch sites and equipment

• Network and data security protections

• Secure communications protocols

• Recovery and incident response plans

Personnel involved in certain operations, particularly those handling package delivery, must pass TSA background checks and adhere to a Limited Security Program.

Operations Over People and Population Categories

The rule would allow BVLOS drones to operate over people, but not over large, open-air gatherings such as concerts or sports stadiums. The FAA outlines five population density categories, with increasing restrictions and mitigation requirements as risk rises.

This risk-based approach opens the door for urban operations and emergency response, while drawing a line at high-density events that could complicate safety responses.

Recordkeeping, Reporting, and Compliance

All BVLOS operators will face new recordkeeping and reporting duties, including:

• Flight hours (by drone make and model)

• Unplanned landings

• Lost link or loss of control events

• Malfunctions causing entry into unauthorized airspace

• Security breaches (physical or digital)

• Operations resulting in over $500 in property damage

Manufacturers and ADSPs must also maintain records of testing, compliance checks, and service outages. These requirements are designed to increase transparency, support enforcement, and build public trust in drone systems sharing the skies.

A National Strategy for Drone Leadership

The FAA’s BVLOS rule isn’t just about safety—it’s also about restoring momentum in a sector where the U.S. has risked falling behind. Countries like China, Japan, and South Korea have moved faster in approving scalable BVLOS use cases. With this rule, U.S. regulators are offering a clearer runway for domestic growth, investment, and innovation.

By reducing friction, cutting certification red tape, and enabling modern use cases, the FAA is signaling that BVLOS is no longer experimental—it’s the next chapter in unmanned aviation.

10 Key Takeaways from the NPRM

Summarizing the FAA’s own fact sheet, here are 10 standout provisions of the proposed rule:

1. Broad Authorization for package delivery, agriculture, surveying, and more.

2. Altitude Cap of 400 feet and location control via secure launch areas.

3. FAA Pre-Approved Flight Zones with boundaries and activity forecasts.

4. ADSP Requirement for airspace separation and situational awareness.

5. Streamlined Airworthiness, replacing certification with consensus standards.

6. Dual Approval Paths—permits and certificates based on risk and scope.

7. Defined Oversight Roles without pilot license requirements.

8. Enhanced Security Protocols, physical and digital, overseen with TSA.

9. Robust Recordkeeping for flights, equipment, training, and events.

10. Population-Based Flight Restrictions, limiting flights over large gatherings.

Public Comment Period Now Open

As of August 5, the rule has entered a 60-day public comment period through the Federal Register. Comments from individuals, companies, advocacy groups, and industry associations are welcomed and will shape the final version of the rule.

“This is a defining moment,” said Schulman. “The drone community has waited over a decade. Now’s the time to speak up.”

The FAA has stated that this comment period will not be extended, urging all stakeholders to act swiftly.

Final Thoughts

After years of anticipation, the FAA’s BVLOS NPRM lays the groundwork for a more open, accountable, and scalable drone future in the United States. If implemented well, it could catalyze a new wave of growth across sectors from logistics to emergency response—while reaffirming the country’s leadership in aviation innovation.

For an industry long held back by red tape, the future is finally in sight. And this time, it’s beyond the line.