OR thinks that a light, minimum diameter (29mm) rocket with an altimeter and using an H14ST could make it to about 5,000 meters. You WOULD have to make sure everything was very straight, and maybe use a fairly long rail, to keep things as straight as possible during the 18 second burn. This would be a subsonic flight at a bit over Mach 0.8, so it might not require as many HP techniques as a faster rocket. OR's total impulse for the motor is a little less than Aerotech's spec, so maybe it would exceed 5,000 meters by a bit.
You could use a lot more impulse and still not exceed the requirements of Level 1. Maybe use a booster or a cluster or something.
Do you have to do both with the 1 rocket, or can you use 2? Openrocket seems to think that a Scout with a D21 can go supersonic, although Openrocket may not be the best tool for transonic and supersonic flight. OR estimates that it would only get up to about 3,000 feet. You'd probably need a tiny radio beacon if you ever wanted to see it again. But I doubt if you can find a light and small enough altimeter, capable of measuring over 100 g's, to keep it over Mach 1. You could always loft another rocket first, to 1,000 feet or so, with a microphone and a recorder, to detect the sonic boom. Or maybe someone could do something with doppler and triangulation. OR also says an Alpha with an F44, which is fatter than the stock size but which could still fit in the body tube, could do the job. Possibly with an altimeter on board, which would NOT have to record more than 100 g's. Of course, this might require a bit of extra effort to install stuff, and you might have to give the fins a carbon spar or something. Not hard to do, though.
To get to 10,000 feet, it seems that you might be able to use the 29mm rocket above, with only a G8ST. Same caveat about keeping everything straight.
Note that these tasks don't require hpr certification, if I'm not mistaken.
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If you guys would rather have more noise and spend more money, or you can't deal with the smaller sizes, you can disregard the above.