Aug 5 (Reuters) - The U.S. Transportation Department is

proposing new rules to speed deployment of drones beyond the

visual line of sight of operators, a key change needed to

advance commercial uses like package deliveries.

"We are going to unleash American drone dominance,"

Transportation Secretary Sean Duffy said at a press conference

on Tuesday.

Under current rules, operators need to get individual

waivers or exemptions to use drones without visual line of

sight. The department said eliminating those requirements "will

significantly expand the use-case for drone technologies in

areas like: manufacturing, farming, energy production,

filmmaking, and the movement of products including lifesaving

medications."

The proposal includes new requirements for manufacturers,

operators, and drone traffic-management services to keep drones

safely separated from other drones and airplanes.

"It's going to change the way that people and products move

throughout our airspace... so you may change the way you get

your Amazon ( AMZN ) package, you may get a Starbucks ( SBUX ) cup of coffee from

a drone," Duffy said.

"Industry needs this rule to make sure they can use this

technology that's going to allow them to do business more

efficiently and effectively."

Amazon ( AMZN ) resumed testing drone deliveries earlier

this year at two locations in Texas and Arizona. Amazon ( AMZN ) has a

goal of delivering 500 million packages annually by drone by the

end of 2030.

Under the proposal, operations would occur at or below 400

feet above ground from pre-designated locations approved by the

Federal Aviation Administration.

Operators would identify boundaries and approximate

daily flights and takeoff, landing and loading areas and ensure

procedures if communications with drones are lost.

Drones would yield to all manned aircraft

broadcasting their position and not interfere with operations at

airports.

The Transportation Security Administration would require

flight coordinators and others to obtain security threat

assessments and a fingerprint-based criminal history records

check.

Lawmakers and many state officials have raised concerns

about drones being used to target high-profile U.S. events like

the FIFA World Cup.

Association for Uncrewed Vehicle Systems International CEO

Michael Robbins praised the risk-based proposal as "a critical

step toward enabling drone operations that will enhance safety,

transform commercial services, and strengthen public safety with

drones as a force multiplier."

(Reporting by David Shepardson; Editing by Franklin Paul and

Emelia Sithole-Matarise)