Section 450.175 - Test-induced damage(a)Applicability. This section applies to license applicants or operators seeking an optional test-induced damage exception.(b)Coordination of potential test-induced damage. Test-induced damage is not a mishap if all of the following are true: (1) A license applicant or operator coordinates potential test-induced damage with the FAA before the planned activity, and with sufficient time for the FAA to evaluate the operator's proposal during the application process or as a license modification;(2) The test-induced damage did not result in any of the following:(i) Serious injury or fatality (as defined in 49 CFR 830.2 ) ;(ii) Damage to property not associated with the licensed activity; or(iii) Hazardous debris leaving the pre-defined hazard area; and(3) The test-induced damage falls within the scope of activities coordinated with the FAA in paragraph (b)(1) of this section.(c)Application requirements. An applicant must submit the following information-(4) Potential risks, including the applicant's best understanding of the uncertainties in environments, test limits, or system performance;(5) Applicable procedures;(6) Expected time and duration of the test; and(7) Additional information as required by the FAA to ensure protection of public health and safety, safety of property, and the national security and foreign policy interests of the United States.