UTARI Presentation

2. UTARI Presentation Civilian Applications of Unmanned Systems A Texas Perspective Michael Toscano President & CEO Association for Unmanned Vehicle Systems International (AUVSI)

3. Discussion Topics • About AUVSI • Industry Outlook • Current Legislative Landscape

4. About AUVSI • AUVSI’s mission is to advance the unmanned systems and robotics community through education, advocacy and leadership. • AUVSI’s vision is to improve humanity by enabling the global use of robotic technology in everyday lives. • In its 42nd year, AUVSI is the world’s largest non-profit association devoted exclusively to unmanned systems and robotics • Air, Ground and Maritime • Defense, Civil and Commercial • AUVSI represents more than 7,500 members, including more than 600 corporate members from more than 60 allied countries • We add a new corporate member every 3.2 days • Diverse membership from industry, government and academia

5. AUVSI’s Unmanned Systems Symposium and Exhibition (Orlando, FL, 12-15 May 2014) The World’s Largest Unmanned Systems and Robotics Event 8,000 Delegates and 600 Exhibitors from more than 55 Countries Renowned keynote speakers from industry and government 100+ other presentations, panels, workshops and posters Air, Ground and Maritime system demos International pavilions AUVSI’s Unmanned Systems Program Review (Washington, DC, 4-6 November 2014) Military and Civilian Government Agency Updates on Unmanned Systems Programs AUVSI Events

6. AUVSI Hill Day: National Robotics Week (Capitol Hill, 2nd Week April) Meetings and Reception with Members of Congress and Staff AUVSI’s Driverless Car Summit Dedicated to understanding and working to solve the core challenges impacting driverless vehicle integration onto tomorrow's roadways. AUVSI’s Unmanned Systems Europe Conference Brings international UAS leaders from Europe together to address the most important trends, advancements and information impacting the UAS industry in Europe. Global Reach and Participation in Events in Australia, Canada, Europe, Asia, South America, the Middle East and the United States Webinars, Roundtables, Workshops and more AUVSI Events Cont.

7. Good Information • 567 Media Interviews in 2013 • Up from 276 in 2012 • 650 Media Mentions in 2013 • Up from 364 in 2012 • UAS Roadshow • Oklahoma, DHS RAPS program • Kansas, Precision Agriculture • Washington, NOAA wildlife monitoring • California, NASA Dryden • More planned…. • www.IncreasingHumanPotential.org • Meeting with Decision Makers • AUVSI’s Day on Capitol Hill • 29 AUVSI Chapters Outreach

8. AUVSI Products and Services • Publications • Unmanned Systems Magazine – readership of 18,000 • Mission Critical – more than 250,000 individual page views • eBrief – distributed to more than 45,000 individuals • Communications • Media Outreach • Public Awareness and Education Campaign • www.increasinghumanpotential.org • Social Media • LinkedIn Group – 9,200 members • Twitter – more than 4,400 followers • Facebook – 2,600 followers • Knowledge Resources • Knowledge Vault • Market Reports • US Jobs Report • Unmanned Systems & Robotics Directory • More than 3,800 platforms

9. Industry Outlook

10. What is an Unmanned System? UAS Subsystems Services UMV UGV • End User • Military • Civil • Commercial • Academic/Research • Category/Classification • HALE • MALE • Tactical • Small Tactical • Small • Miniature/Micro • Vertical Takeoff/Landing • Combat • Lighter than Air • Optionally Piloted • Mission (Most Common) • Surveillance • Precision Strike • Precision Agriculture • Inspection • Communications • Monitoring/Research • Cargo Delivery • Recreation • End User • Military • Civil • Commercial • Academic/Research • Mission (Most Common) • EOD/Bomb Disposal • Logistics/Transport • Surveillance/Recon • Combat • Medevac • HAZMAT Detection • Combat • Inspection • Communications Relay • Message Broadcast • Firefighting • Search and Rescue • Perimeter Patrol • Archeology • Research • End User • Military • Civil • Commercial • Academic/Research • Category • Unmanned Underwater Vehicles • Unmanned Surface Vehicles • Remotely Operated Vehicles • Mission (Most Common) • Mine Clearance • Surveillance • Environmental Monitoring • Infrastructure Inspection • Marine Life Monitoring • Oil & Gas • Hull Inspection • Search and Rescue • Security/Patrol • Other Inspection • Marine Life Monitoring • Research • Payloads • Components • Communications • Command/Control • Navigation • Avionics • Software • Propulsion/Power • Displays • Control Stations • Launch/Recovery • Engineering • Integration • Logistics • Training • Maintenance • Operational • Consulting • R&D

11. Unmanned Systems Potential Applications Border Security Arctic Research Firefighting Flood Monitoring Crop Dusting Mining Farming Aerial Photography Real-estate Communications Industrial Logistics Pollution Monitoring Storm Research HAZMAT Detection Asset Monitoring Event Security Port Security Construction Cargo Broadcasting Search & Rescue Volcanic Research Pipeline Monitoring Filmmaking Crowd Control Aerial News Coverage Wildlife Monitoring Forensic Photography Power line Surveying Damage Assessment

12. What’s Changed or What needs to Change Digital Natives vs Digital Immigrant Cell Phones – Different Business Model Education of the Public Safety Benefits Privacy – Unmanned Air Systems has it worse – The “D” word How good do driverless cars need to be? What is the risk acceptance of self-driving cars? What does it take to driving – how many functions? Man made laws can be changed One step at a time – Smart cars to Self-driving cars

13. Unmanned Aircraft SystemUAS

14. What is an Unmanned Aircraft System (UAS) • There is nothing unmanned about an unmanned system! • What are they called: • Unmanned Aircraft System (UAS) • FAA and Congress • Unmanned Aerial Vehicle (UAV) • Remotely Piloted Aircraft Sys (RPAS) • ICAO and Air Force • Public perception is somewhat skewed: • Drones • Military • Hostile • Weaponized • Autonomy

15. TACOCOPTER

16. Access to the NAS Sense and Avoid Risk Acceptance/Public Acceptance Standards/Certification/Training Power/Energy Communications/Frequency Spectrum Cyber Security Liability and Insurance Export Controls Civil Liberties Challenges Facing UAS

17. UAS Economic Potential • AUVSI’s 2013 Economic Report: • www.auvsi.org/econreport • The UAS global market is currently $11.3 billion • Over the next 10 years, the UAS global market will total $140 billion • The economic impact of US airspace integration will total over $13.6 billion in the first three years and will grow sustainably for the foreseeable future, cumulating to more than $82.1 billion between 2015 and 2025 • Every year that airspace integration is delayed will cost the U.S. over $10 billion in lost potential economic impact, which translates to $27 million per day

18. UAS Industry on the Rise Precision agriculture totals approximately 80% of the potential commercial market for UAS • Drought management • Disease detection • Watering • Spraying pesticides UAS in agriculture has the potential to have an $11 billioneconomic impact in the first three years following integration. Almost $66 billionover 11 years. “Precision application, a practice especially useful for crop farmers and horticulturists, utilizes effective and efficient spray techniques to more selectively cover plants and fields. This allows farmers to provide only the needed pesticide or nutrient to each plant, reducing the total amount sprayed, and thus saving money and reducing environmental impacts.”

19. AUVSI UAS 2014 Forecast • A 2013 market study by the Teal Group estimates worldwide UAS spending will double over the next decade from current $5.2 billion annually to $11.6 billion annually • Defense spending will not grow as it has in past decade • Likely to stagnate over next several years • Defense spending will increase in 5-10 years as commercial systems drive capability, reliability and price points • As legislation barriers lessen over next several years, commercial spending will exceed defense spending • Current commercial UAS use vary greatly between countries, limited by legislation • Countries that delay airspace integration will lag in technology development and manufacturing, relying on imports to gain UAS benefits • Over the next decade, total UAS spending will reach $140 billion

20. UAS credited with first live save in vehicle rollover in Canada Japan is using unmanned helicopters for spraying crops for pest control Predator B aircraft provided aerial surveillance for Yosemite National Park wildfire Predator surveyed floodwaters in the upper Midwest USGS used small UAS to monitor Sandhill cranes, Pygmy rabbits and several other wildlifespecies NOAA using UAS to monitor ice and weatherconditions in the U.S. Arctic, in addition to wildlifemonitoring Police using small UAS for public safety Recent Examples of UAS Use

21. Aurora Flight Sciences is using the Skate UAS to study archeological sites in Peru Nepal, Russia, South Africa, Thailand testing UAS to save endangered animals from poachers Nicholls State University testing UAS to map coastline Colorado State University, Univ. of Oklahoma testing UAS to fly into tornados NASA launched three UAS into smoke plume of Turrialba volcano in Costa Rica Kansas State University, Virginia Tech University using UAS for agriculture research New Caledonia using UAS for nickel ore mine mapping surveys Recent Examples of UAS Use

22. Emerging Commercial UAV Uses • Agriculture • UAV use for crop-dusting minimizes possibility of fatalities • Manned crop-dusting costs up to $8.00 per acre, compared to UAV crop-dusting for just $2.00 per acre • News Media • Over $200 million spent in media helicopter gasoline every year • 2007: two news helicopters collide in Phoenix, Arizona; four passengers killed • Wildlife Monitoring • 2011: 25-year veteran pilot dies in crash while conducting wildlife survey • Flights can cost upwards of $200,000 every year • UAVs well equipped to monitor wildlife

23. Unmanned Systems and Efficiency • Cost-effective way to spray for pests and diseases, manage crops, check for signs of drought • Conduct up-close surveillance of farm plots and provide high-resolution data • Safely survey sloped, muddy or dangerous terrain • Detect invasive species in grasslands and crops • Assist in planning improvements in field drainage • Map and estimate acreage and crop types • Assist in developing crop yield estimates • Efficiently spray crops with fertilizers, pesticides and fungicides

25. A hundred years ago, more than 30% of Americans were directly involved in the agriculture industry; today, the number is less than 2%. The Bureau of Labor Statistics anticipates an 8% drop in farmer employment between 2010 and 2020, meaning there will be 96,100 less farmers Market Value of Products Sold: almost $300 billion In a 2012, AP interview, U.S. Deputy Secretary of Agriculture Kathleen Merrigan said experts also project the world will require 70% more food production by 2050 to keep up with population growth Current State of U.S. Farms

26. Half of the universities with active COAs in 2012 were doing either agriculture or fisheries and wildlife research. Virginia Tech using UAS to track Fusarium, a devastating fungi to plants and animals. UAI International of Grand Forks, UA Vision of Dayton, Ohio, and the University of Dayton led Institute for the Development and Commercialization of advanced Sensor Technology (IDCAST) are working to develop and market UAV-based solutions for agricultural applications to detect early signs of crop problems. Willoway Nurseries and Flowerwood Nursery are using UGV Harvest Automation robots for moving and carrying pots. Carnegie Mellon University's Comprehensive Automation for Specialty Crops program developed self-driving Autonomous Prime Mover platform that improved the tying and thinning rates of peach and apple trees and the rate of pesticide application. Agriculture Applications Examples

27. Acres in Japan Sprayed by Unmanned Helicopters

28. 2013 FAA Accomplishments • Commercial Arctic UAS operations -- UAS Civil Certifications • Common Strategy for Law Enforcement • RTCA SC-228 (C2, DAA) -- ASTM F38 • ARC Implementation Plan • 5 Year Roadmap • JPDO Comprehensive Integration Plan • Privacy Policy for Test Sites • Night Operations COA for the Grand Forks, ND, Sheriff’s Dept • World Radio Conference Spectrum Agenda Item • Congressional Unmanned Systems Caucus • Six UAS Test Sites

29. UAS Test Sites • On December 30, 2013 FAA announced the selection of six test sites • University of Alaska • State of Nevada • New York's Griffiss International Airport • North Dakota Department of Commerce • Texas A&M University - Corpus Christi • Virginia Polytechnic Institute and State University (Virginia Tech) • 24 states submitted applications to become an FAA test site • Several applications had multiple state involvement • FAA is working with six sites to determine operational capability • At least one site needs to be up and running in 180 days F.A.A. Picks Diverse Sites to Carry Out Drone Tests U.S. cracks open skies to testing, use of aerial drones

30. All stakeholders can work together to advance UAS technology, while protecting Americans’ safety, as well as their rights. AUVSI supports: • Transparency Measures • Register unmanned aircraft and pilots with the Federal Aviation Administration (FAA) • Prohibiting Weaponization • The FAA already prohibits the deployment of weapons on civil aircraft • Data Retention Policies • Governing the collection, use, storage, sharing, and deletion of data • Policies should be available for public review and comment • Policies should outline strict accountability • AUVSI supports the International Association of Chiefs of Police model guidelines • Accountability • The Fourth Amendment already protects against unreasonable searches • People should be prosecuted for violating privacy laws • Technology Neutral Laws • Any new laws or regulations should focus on whether the government can collect and use data, not how it is collected AUVSI’s Position on UAS Privacy

32. Federal Legislation in 2013 • H.R.972 – Rep. Austin Scott (R-GA): Preserving Freedom from Unwarranted Surveillance Act • H.R.637 – Rep. Ted Poe (R-TX): Preserving American Privacy Act • H.R.1083 – Rep. Michael Burgess (R-TX): No Armed Drones Act (NADA) • H.R.1242 – Rep. Reid Ribble (R-WI): To prohibit the use of drones to kill citizens of the United States within the United States. • S.505 – Ted Cruz (R-TX): A bill to prohibit the use of drones to kill citizens of the United States within the United States. • S.1639 – Sen. Edward Markey (D-MA) Drone Aircraft Privacy and Transparency Act • H.R.1262 – Rep. Peter Welsh (D-VT): Drone Aircraft Privacy and Transparency Act • S. 1016 – Sen. Rand Paul (R-KY): Preserving Freedom from Unwarranted Surveillance Act • H.R. 2183 – Rep. Barbara Lee (D-CA): Drones Accountability Act • S. 1057 – Sen. Mark Udall (D-CO): Safeguarding Privacy and Fostering Aerospace Innovation Act. • H.R. 2438 – Rep. Darryl Issa (R-CA): DRONES Act, to establish a process for targeted killings. • H.R. 2217: 2014 Homeland Security Appropriations Act. Requires DHS Privacy Officer to review UAS operations to ensure they comply with existing law and all applicable privacy and civil liberty standards • H.R. 1960: 2014 Defense Authorization Act. AUVSI lobbied for FAA reports on UAS Integration. • S. 1197: 2014 Defense Authorization Act. AUVSI lobbied for FAA reports on UAS Integration. • S. 1243: 2014 Transportation Appropriations Act. Requires federal agencies to report to Congress on UAS privacy issues, and delays FAA rulemaking until the report is submitted

33. Congressional Hearings • Senate Judiciary Committee • “The Future of Drones in America” • AUVSI testified • House Judiciary Committee • “Eyes in the Sky: The Domestic Use of Unmanned Aerial Systems” • AUVSI Suggested Witnesses • House Science, Space and Technology Committee • “Operating Unmanned Aircraft Systems in the National Airspace System: Assessing Research and Development Efforts to Ensure Safety.” • House Transportation and Infrastructure Committee • “Maritime Domain Awareness” • Steve Morrow (CEO of Insitu) testified on AUVSI’s behalf • FAA Modernization and Reform Act: One Year Later • Senate Commerce, Science, and Transportation Committee • Commercial UAS (Ag, Arctic, Amazon?) – February 2014 • House Homeland Security Committee – February 2014 • State Hearings • Alaska, Colorado, Michigan, Kentucky Legislative Hearings

34. UAS Regulations on Commercial Use of UAS Current Privacy Issues in the Civil Market “Lettuce doesn’t care if it’s spied on” Solutions Need to Meet the Triple Bottom Line Cost-effective for farmers Beneficial to society Good for environment Cost-effectiveness of sensors for UAS and UGS Not many available Dexterous manipulation Robotic technology can fly a 747 across the country, but is challenged with the simple task of picking a strawberry Challenges

35. Unmanned Ground VehicleUGV

36. Why Automatic Vehicles Safety • 32,788 highway deaths • 6,300,000 crashes/year • Leading cause of death for ages 4 ‐ 34 Mobility • 4,200,000,000 hours of travel delay • $80,000,000,000 cost of urban congestion Environment • 2,900,000,000 gallons of wasted fuel

37. In 2010 32,788 people lost their lives in car accidents in the United States. Cost of crashes to the U.S. economy is more than $230 billion per year and consumes a greater share of national health care costs than any other cause of illness or injury On average Americans spend more than 100 hours a year commuting, according to the U.S. Census Bureau's American Community Survey A 2011 study conducted by Texas A&M University ranks Washington D.C. traffic the worst in the nation. D.C. drivers on average spend more than three days a year sitting in traffic Traffic is one of the primary reasons Forbes ranked Los Angeles as the most stressed city in America There will be 53.5 million people over the age of 65 in the U.S. by 2020 There will be 22 million people over the age of 75 in 2020, and this number is expected to double by 2050 Emerging Application Snapshot: Automated Vechicles

38. Automated Vehicles by 20??! • Automated Vehicles could be the next transportation revolution: • improving driver safety • reducing pollution • easing traffic congestion • aiding the mobility of millions of elderly and disabled in the U.S. and around the world • Innovation and technological advancement will be key for the U.S. automotive industry to stay competitive

39. Benefits of Automated Vehicles • Faster reaction time than a human • Can see 360 degrees and process thousands of Vehicle-to-Vehicle and Vehicle-to-Infrastructure information packets a second • Programmed to follow local traffic laws • Never gets distracted, tired or impaired • Potential to dramatically reduce crashes and car related injuries and deaths. • Allow for mobility for those who may have difficulty safely driving a vehicle: blind, aging, physically impaired

40. Companies Developing Automated Vehicles • Google, Continental, Ford Motor Co., General Motors, BMW, Nissan, Toyota, Mercedes, Audi, Volkswagon, Volvo are developing technology for autonomous driving. • Google has driven more than 500,000 miles with its fleet of driverless vehicles • Continental has logged close to 7,000 miles with a automated VW Passat • Volvo is preparing to launch its first driverless vehicles in 2014

41. Challenges for Automated Vehicles • Legal Issues/Liability /Privacy – Who’s responsible when there is an accident? How do we ensure drivers’ rights to privacy are protected? • Insurance – How will the insurance industry handle this revolution in transportation? What will the emerging insurance models entail, and how will automated vehicles be covered? • Cultural – How do we instill trust in the driving public? How do we market a “cool” driverless car to auto and driving enthusiasts? How do we influence consumer behavior and societal acceptance? • Regulatory/Policy – How will automated vehicles be regulated? What standards will they have to meet? How will regulations and policies differ from state to state? How will these vehicles be vetted, tested and ultimately integrated onto existing highways with traditional vehicles?

42. Revolutionary Technology If the automobile were invented today, it probably would not be allowed on public roads • A century of death and suffering caused by cars and trucks is comparable to the carnage of the world’s wars • There are still about one million deaths and 50 million injuries per year worldwide • While the U.S. death rate has shrunk to below 33,000 from above 42,000 per year. Crashes in the U.S. exceed 6 million a year with more than 3 million injuries with many expensive hospitalizations • Cost of crashes to the U.S. economy is more than $230 billion per year and consumes a greater share of national health care costs than any other cause of illness or injury

43. The Future of the Automobile • Rapid progress in intelligent vehicle technology can directly benefit the commercial development of intelligent cars, trucks, and buses • Reduce time and expense for the automotive industry • Technology transferred from DOT and commercial sector will reduce the cost and increase the availability of commercial-off-the-shelf (COTS) intelligent vehicle systems and components

44. Smart Cars • DOT and industry are developing smart cars and a smart system. A system of systems consisting of vehicles, infrastructure, and control centers – to begin operation in the near future • Subsystems include: • Sensors (in the vehicles and infrastructure) • Processors and software (in vehicles, infrastructure, and control centers) • Communications (in vehicles, infrastructure, and control centers) which occurs • Between vehicles (V2V) • Between vehicles and infrastructure (V2I) • Between different parts of the infrastructure (I2I) • Will incorporate consumer devices such as cell phones and other electronic devices

45. Smart Cars • The vision:  • Safety: Smart cars will provide vehicles with 360-degree awareness, informing drivers of hazards and situations otherwise not visible, avoiding crashes • Mobility: Smart cars will provide complete multi-modal information about a transportation network’s real-time performance to travelers and transportation managers • Environment: Smart cars will reduce the environmental impact of a trip by providing real-time information about traffic congestion and other travel conditions to help travelers (or intelligent control systems) make more informed decisions about travel time, routes, or alternate means of transport

46. In 2010, 51 workers engulfed and 26 killed in grain bins, according to Purdue University study According to OSHA, there were more than 500 grain bin explosions between 1977-2012, 677 injuries and 184 fatalities Workers typically suffocate under grain avalanches and “quicksand” incidents or get caught in sweeping arm that moves grain along 13,000 grain operators in the U.S. Last year, OHSA passed a zero-entry policy, leaving these workers with no way to access grain stuck inside bin Mack Robotics developed BinBot in 2011 to help address this dangerous issue Example of Unmanned Use for Farmer Safety

47. Questions that need to be answered How do you measure what could have or didn’t happen? What happens when the driver is an operator and is not sitting in the car? Person in or on the loop. How do we tell the story? How do we handle the privacy issue as it pertains to automated vehicles?

48. Summary • Unmanned Systems/Robotics has the potential to be a revolutionary technology • Major economic drive/job maker • Significant improvement to quality of life • Improve national security/defense operations • The White House (OSTP) and Congress are supportive/encouraging unmanned systems/robotics (STEM) • Unmanned Systems/Robotics will continue to grow and be a part of our future

49. Unmanned Maritime VehicleUMV

50. Seismic monitoring and deep sea surveys • 3-D modeling to improve operational safety by providing structural long term stress assessments and other tasks • Seep or leak detection • Environmental monitoring to assess potential harm • Acoustic monitoring for marine life tracking and other environmental applications • Year round under ice surveys UMV Applications Supporting theOil & Gas Industry