The Government Accountability Office (GAO) issued a report detailing the results of testing several insurance policies for international-made drones. The study aimed to determine whether these policies could effectively protect against potential risks and liabilities associated with unmanned aerial systems (UAS).

For decades, drones have been invaluable assets for the Division of the Interior, enabling efficient management of remote federal lands and navigating treacherous situations like wildfires with precision.

Since fiscal year 2020, Inside has undertaken a comprehensive review of its insurance policies to mitigate the risks associated with the procurement and operation of certain foreign-made drones, driven by concerns over potential safety hazards. Initially, those inside are permitted to utilize them; conversely, they typically aren’t authorized to procure additional ones.

This report examines the impact of insurance policies on Inside’s drone fleet and operational efficiency. Within government agencies, a significant challenge has arisen in upgrading aging drone fleets, thereby hindering the expansion of their utilization.

What GAO Discovered

As concerns mounted over the potential risks associated with using foreign-made drones, the Department of the Interior initiated a ban on the procurement and non-emergency use of unmanned aerial vehicles (UAVs) manufactured by companies based in countries deemed hostile or non-compliant in fiscal year 2020. The Federal Aviation Administration (FAA) continues to allow the operation of previously acquired foreign-made unmanned aerial vehicles (UAVs), such as those used in wildland fire management. In October 2022, Inside lifted its ban on non-emergency drone use by bureaus, concluding that the risks associated with these uses were sufficiently mitigated. Despite the June 2024 deadline, Inside’s ban on acquiring these drones remains in effect, with limited exemptions granted for procurement purposes supporting wildfire management and search-and-rescue operations.

The Interior faces challenges in sustaining a sufficient drone fleet because drones compliant with its insurance policies are more costly and don’t always possess adequate capabilities, among other points, according to officials from the four Interior bureaus GAO reviewed – the Bureau of Land Management (BLM), Fish and Wildlife Service (FWS), National Park Service (NPS), and U.S. Geological Survey (USGS). Despite these challenges, Inside has struggled to completely replace its aging drones when they reach the end of their serviceable lifespan. Notwithstanding this, Inside has brought its needs to the attention of compliant drone manufacturers, prompting some agency officials to consider ways to accommodate the increased cost of such drones by acquiring models that multiple program offices could share.

Inside’s drone insurance policies have significantly impacted the company’s drone usage for both emergency and non-emergency operations in a variety of ways.

•  Limited fleet sizes have hindered the Interior bureaus’ capacity to leverage drone technology effectively for emergency response efforts, with some agencies struggling to meet their operational needs due to inadequate drone supplies, according to bureau officials. Federal agencies like the Bureau of Land Management (BLM) and National Park Service (NPS) lack adequate drone resources to effectively combat or prevent wildland fires, prompting them to adopt riskier, more expensive alternatives, such as helicopter operations, according to officials. Furthermore, the USGS has reduced its drone flights for assessing susceptibility to and mitigating the effects of pure hazards, in compliance with official guidelines. Natural disasters can manifest as devastating events such as floods, landslides, volcanic eruptions, and hurricanes, among numerous others.
•  By fiscal years 2020 to 2022, the entire fleet of Inside drones was deemed noncompliant and restricted from operation except in emergency situations. With the prohibition lifted, dwindling drone fleets have limited the bureaus’ capacity to resume non-emergency flights. The operations of bureaus that transitioned from traditional methods utilizing crewed planes or ground-based approaches may have inadvertently sacrificed the superior data quality, enhanced security, and other advantages offered by drone technology. Additionally, the lack of realization of previously planned initiatives, reduced project scales, and failed startups resulted in opportunities being overlooked to acquire vital information relevant to landscape management, natural resources, cultural heritage, wildlife conservation, and infrastructure development. Following the Swan Lake Hearth incident in Alaska, the Forest and Wildlife Service (FWS) abruptly terminated its planned aerial photography mission, as confirmed by official sources. The officers highlighted numerous perils that rendered the area treacherous for pedestrians.

Insiders’ drone insurance policies have further prohibited other entities from operating any foreign-made drones on Insiders-managed land. According to officials at the Nationwide Oceanic and Atmospheric Administration (NOAA), the agency has modified or suspended several of its drone-based wildlife survey missions operating within managed lands as a direct result. As a result, Inside’s non-federal counterparts, such as universities, typically do not operate drones in compliance with Inside’s regulations. Subsequently, these entities are no longer permitted to conduct aerial missions over lands managed by the Interior Department for purposes like monitoring wildlife populations or assessing archaeological sites, according to Interior officials.

Why GAO Did This Research

Using uncrewed aircraft systems (UAS), also known as drones, is an integral part of Interior’s management strategy for its vast portfolio of over 500 million acres of federal lands. Operations are often conducted in remote locations, exposing personnel to hazardous conditions, such as navigating treacherous terrain or working amidst the dangers of wildland fires. By leveraging drones, organizations can reap a range of benefits, including enhanced security and reduced costs.

The Government Accountability Office (GAO) examined the drone insurance policies offered by Inside. Here is the rewritten text:

This report presents insights into Inside’s drone insurance policies since fiscal year 2020, highlighting their impact on drone fleets and operations at selected Inside bureaus, including NOAA, as well as non-federal partners.

The Government Accountability Office (GAO) scrutinized relevant legal frameworks, insurance coverage, and guidance, as well as internal data regarding the procurement and flight operations of drones by the Bureau of Land Management (BLM), Fish and Wildlife Service (FWS), National Park Service (NPS), and United States Geological Survey (USGS)—the agency’s most prominent drone users according to internal records. The Government Accountability Office (GAO) examined documentation provided by Inside and conducted interviews with officials at Inside and its four bureaus to analyze how Inside’s insurance policies impacted drone fleets and operations managed by the bureaus and their non-federal partners. The Government Accountability Office (GAO) conducted a thorough review of documentation and conducted interviews with officials from the National Oceanic and Atmospheric Administration (NOAA).

Contact information for additional data: Cardell D. Johnson at (202) 512-3841 or .