“Risks and Rewards: Encouraging Commercial Space Innovation While Maintaining Public Safety”

Posted on September 12, 2024 Posted By: Danielle Forand Categories: Nimitz Tech

House Committee on Science, Space, and Technology; Subcommittee on Space and Aeronautics Hearing

September 10, 2024 (recording linked here)

HEARING INFORMATION

Witnesses and Written Testimony (linked):

Mr. Kelvin Coleman: Associate Administrator for Commercial Space Transportation, Federal Aviation Administration
Mr. Dave Cavossa: President, Commercial Spaceflight Federation
Mr. Mike French: Founder, Space Policy Group, and Vice Chair, FAA Commercial Space Transportation Advisory Committee
Ms. Pamela L. Meredith: Chair, Space Law Practice Group, KMA Zuckert LLC

Key words:

Safety, Licensing, Compliance, Regulations, Part 450, Innovation, Launch, Reentry, Efficiency, Competitiveness.

Boeing Starliner capsule docked at the International Space Station

IN THEIR WORDS

"Safety is our focus. That's why we're in business... We cannot enable safe space transportation by setting aside demonstration of compliance with the regulatory requirements."

- Kelvin Coleman (FAA)

“I fear that at this rate, the Communist Party will launch taikonauts to the Moon while U.S. industry remains tethered to Earth with red tape.”

-Chairman Brian Babin

"We have a licensing regime with lack of certainty, lack of transparency, and significant delay... Should launches with a mission that serve a compelling national interest or a national security interest take priority in the licensing process?"

-Pamela Meredith (KMA Zilkert)

OPENING STATEMENTS FROM THE SUBCOMMITTEE AND FULL COMMITTEE

Chairman Babin opened by emphasizing his priorities of ensuring U.S. leadership in space exploration and maintaining a robust commercial space industry, highlighting its importance for economic competitiveness and national security. The Chairman discussed the committee’s efforts to streamline commercial space regulations over the last decade, including legislative actions like the Commercial Space Launch Competitiveness Act and the American Space Commerce Free Enterprise Act. He expressed concerns about inefficiencies in the current FAA Part 450 launch and reentry licensing process, which he argued compromises U.S. competitiveness and security, especially in the face of progress by international competitors like China. The Chairman called for improvements in the licensing process, stressing the need for timely approvals, minimized regulatory burdens, and efficient implementation of space-related policies to ensure the U.S. remains at the forefront of space innovation and exploration.
Ranking Member Sorensen emphasized her personal connection to the aerospace field through her father’s work on the shuttle program. The Ranking Member highlighted the critical role of space systems and technologies in communication, navigation, climate monitoring, and national security. She praised the FAA’s impressive safety record, noting that over 700 commercial space launches have occurred without significant safety impacts, with 40% of those launches happening in the last three years. The Ranking Member stressed the importance of the FAA keeping pace with growing launch activities, adapting to updated regulations, and managing the challenges of the evolving commercial space industry, while also urging for a focus on the workforce, infrastructure, and environmental implications associated with these advancements.
Chairman Lucas (Full-Committee) began by emphasizing the committee’s ongoing focus on maintaining U.S. competitiveness in science and technology, particularly in the commercial space sector. The Chairman highlighted the importance of collaboration between government and industry to further national space objectives and support the growth of a space economy while ensuring federal oversight does not stifle innovation. The Chairman noted the impact of Space Policy Directive 2 (SPD-2) from 2018, which aimed to streamline licensing processes and reduce regulatory burdens for space operators, and stressed the need to assess the effectiveness of these reforms now, five years later. The Chairman discussed the FAA’s 2020 rule on streamlining launch and reentry license requirements, establishing a single performance-based licensing process. They emphasized the need to evaluate the rule’s impact, the progress made, and potential areas for improvement, as well as to review the broader regulatory approach to all U.S. space activities. The Chairman expressed concern over a legislative proposal by the National Space Council that, despite good intentions, could create additional regulatory burdens, arguing instead for advancing the Commercial Space Act to provide clarity and efficiency in the licensing process. The Chairman concluded by urging colleagues to support the legislation.
Ranking Member Lofgren (Full-Committee) highlighted the importance of balancing commercial space innovation with maintaining public safety, noting the significant role of the launch and reentry industry in supporting commercial, civil, and national security space programs. The Ranking Member emphasized the need for a modern regulatory system that can accommodate the growing pace and complexity of space activities, acknowledging that while the FAA’s 2020 regulations aimed to streamline the licensing process, their implementation remains a critical issue for the industry. The Ranking Member expressed concern about the strain on the system caused by increased launch operations, calling it a “good problem” if adequately managed. The Ranking Member recognized bipartisan congressional support for better equipping the FAA to handle the industry’s growth, including budget increases for the FAA’s Office of Commercial Space Transportation, though she stressed that funding alone may not be enough. The Ranking Member urged for actionable solutions to improve the FAA’s efficiency and effectiveness in regulating commercial space launches and reentries while maintaining public safety and national security.

WITNESS HIGHLIGHTS

Mr. Kelvin Coleman emphasized the FAA’s commitment to maintaining public safety as the primary focus of its regulatory responsibilities. He acknowledged the significant growth in commercial space activities and the increasing complexity of the licensing process, particularly under Part 450, which was designed to streamline launch and reentry approvals through a performance-based framework. He noted that while the FAA has made progress in implementing Part 450, challenges remain, including the need for industry to provide thorough and complete applications that address compliance requirements upfront. He highlighted ongoing efforts, such as issuing advisory circulars and establishing the Space Aerospace Rulemaking Committee (SPARC), which aim to address the technical and regulatory hurdles identified during Part 450’s implementation. Mr. Coleman stressed that while the FAA is working to improve processes, compliance with safety regulations cannot be compromised, and both government and industry must work collaboratively to ensure the U.S. remains competitive in the global space race.
Mr. Dave Cavossa expressed deep concerns about the current implementation of Part 450, arguing that the regulatory delays and inefficiencies are hindering innovation and threatening U.S. leadership in the space industry. He noted that the FAA’s licensing process, particularly for reentry, is complex and often costly for companies, which face uncertainty and prolonged timelines that disrupt operations and investment. He pointed out that industry members are spending significant resources trying to comply with shifting regulatory expectations, which often lack clear guidance or timely support from the FAA. He advocated for immediate process improvements that could be made independently of long-term regulatory changes, such as better-defined compliance pathways and reinstating previously effective practices like independent technical reviews. Mr. Cavossa emphasized the importance of balancing safety with efficiency, warning that without changes, the U.S. could lose its competitive edge to nations like China, which are rapidly advancing their own space capabilities.
Mr. Mike French highlighted the tremendous growth of the commercial space industry, noting that while the U.S. launch sector has expanded significantly, the FAA’s resources and staffing have not kept pace. He pointed out that the FAA’s budget and workforce have only grown at a fraction of the rate of the industry, creating a bottleneck that impacts the licensing process and limits the agency’s ability to issue new guidance or develop tools that could improve efficiency. He expressed concern that regulatory challenges, particularly around Part 450, are increasingly straining the industry, and he called for increased funding and prioritization of advisory circulars to provide clearer compliance pathways. He also suggested innovative approaches, such as implementing a “chess clock” system to better manage time during the licensing process, as a way to enhance transparency and accountability. Mr. French stressed that while maintaining safety is essential, the FAA must find ways to support the industry’s growth to sustain U.S. leadership in space.
Ms. Pamela Meredith discussed the complexities of the current FAA licensing regime under Part 450, emphasizing that the regulation, while intended to streamline and simplify the process, has often resulted in delays and confusion. She noted that the performance-based requirements of Part 450, which allow for flexibility in demonstrating compliance, can also lead to resource-intensive, one-off evaluations that slow the approval process. She called for additional guidance, such as advisory circulars and standardized safety evaluation databases, to help companies better understand what is required for compliance. She also raised concerns about the extended pre-application process and the FAA’s ability to “toll” or pause the review clock, which she argued adds to the uncertainty and length of the licensing timeline. Ms. Meredith stressed the need for greater transparency, prioritization of critical missions, and a more efficient regulatory approach to ensure that the U.S. commercial space industry can thrive without being bogged down by bureaucratic delays.

SUMMARY OF Q and A

Chairman Babin began by highlighting the urgency of the U.S. space race against China, pointing out that China is on track to land humans on the moon by 2030. The Chairman asked Mr. Cavossa about the impact of regulatory red tape on commercial space operators and how it affects American goals for space exploration. Mr. Cavossa responded that excessive bureaucracy and delays in the licensing process are creating significant obstacles for the industry, stifling innovation and slowing down critical missions. Mr. Cavossa emphasized that while safety remains important, the current implementation of Part 450 is causing unnecessary drag, contrasting the U.S. approach with China’s rapid, less safety-conscious efforts.The Chairman then asked Mr. Coleman how the FAA leverages existing practices and analyses from other federal agencies like NASA and the Department of Defense to expedite application processing. Mr. Coleman explained that the FAA does accept work done by other agencies if it meets their requirements, and they collaborate closely with entities like the Space Force to streamline analysis and compliance processes. Mr. Coleman noted, however, that the roles and responsibilities of agencies can differ, which sometimes complicates integration efforts.The Chairman asked about the average time for FAA license determinations, which Mr. Coleman stated is 151 days, starting from when the application is accepted. However, this does not include the pre-application consultation phase, which involves initial discussions between the regulator and the service provider. The Chairman then pressed Mr. Coleman on the total timeline, including the pre-application process, but Mr. Coleman did not have exact data on the extended timeframe.The Chairman then questioned Ms. Meredithon the administration’s proposed legislation that would give multiple agencies broad authority over space activities under the guise of national interest. Ms. Meredith expressed concerns that the proposal is overbroad and would be challenging to pass. Ms. Meredith also cautioned that dividing licensing authority among various agencies could complicate and slow down the process, potentially harming U.S. competitiveness and the nation’s ability to explore space effectively.
Ranking Member Sorensen’s questioning emphasized the importance of aligning regulatory processes with national space objectives and asked how Part 450 could better accommodate the needs of reentry missions, given recent challenges. Mr. Coleman acknowledged that Part 450 was not perfect at its inception and that ongoing implementation was revealing areas for improvement, particularly in reentry requirements. Mr. Coleman highlighted that one of the key tasks for the upcoming SPARC would be to review these issues and provide recommendations to refine the rule.The Ranking Member also expressed concern about the potential impact of delays in federal appropriations on the FAA’s ability to complete its work effectively. Mr. French responded that lapses in funding could severely hinder the FAA’s ability to hire and retain the necessary workforce to meet the growing demands of the commercial space sector. Mr. French stressed that delays in appropriations would undermine U.S. competitiveness, particularly in the context of the ongoing space race with adversaries like China, and urged Congress to ensure consistent and timely funding to support these critical missions.
Rep. Posey began by asking Mr. Colemanabout the FAA’s budget and staffing levels, specifically in the division responsible for processing license applications. Mr. Coleman replied that the fiscal year 2024 budget for his office was $42 million, with 158 staff members, around 65-70% of whom work on licensing. Rep. Posey then inquired about the number of licenses currently in process, and Mr. Coleman estimated there were 30 to 40 active applications. Rep. Posey questioned the average processing time, which Mr. Coleman confirmed as 151 days on average.Rep. Posey then shifted to discussing Starfighters, a company operating F-104 jets for parabolic missions that has been attempting to obtain a license for over 16 years. Rep. Posey expressed frustration, pointing out that despite having an impeccable safety record and extensive experience, Starfighters has been unable to secure a license, even though other, less experienced entities have received approvals. Rep. Posey emphasized that Starfighters could likely obtain similar licenses more easily in other countries, highlighting what he sees as an unnecessarily burdensome regulatory process in the U.S. Rep. Posey accused the agency of being unresponsive and obstructive, attributing the delay to what he described as “arrogance, petulance, and defiance.” Mr. Coleman acknowledged Rep. Posey’s concerns and frustration, explaining that the issue with Starfighters falls under a different part of the FAA, specifically Title 49, rather than Mr. Coleman’s division under Title 51.
Ranking Member Lofgren expressed her interest in Mr. French’s suggestion of a “chess clock” system for regulatory timelines and Ms. Meredith’s emphasis on prioritizing national security issues in space operations. She reiterated the importance of supporting the commercial space industry while ensuring that growth does not come at the expense of the environment. She highlighted specific concerns about SpaceX, citing reports of unpermitted launches, explosions, and environmental violations at Boca Chica. The Ranking Member questioned how the FAA plans to handle environmental reviews to prevent such problems and raised the possibility of funding the regulatory process through fees, similar to other government entities like the Patent Office. Mr. Coleman responded that environmental concerns are a significant part of the FAA’s licensing process. He explained that for SpaceX’s planned increased launch activity at Boca Chica, the FAA had already initiated a draft environmental assessment, made it available for public review, and invited public feedback through meetings. Mr. Coleman confirmed that the FAA collaborates with state and federal environmental agencies, including the Texas Environmental Quality Commission and the EPA, to address reported violations and incorporate their feedback into the assessments.
Rep. Garcia reinforced the urgency of maintaining both safety and speed in the space race, emphasizing that delays in licensing directly impact critical programs such as Artemis. He asked Mr. Coleman to ensure that the FAA staff processing licenses fully appreciate the national security implications of their work and not adopt a zero-risk mentality that could stifle progress. Rep. Garcia voiced concerns that the FAA might not be the right agency to handle these responsibilities given the recurring issues with licensing timelines and suggested exploring whether other agencies like DARPA or AFRL might be better suited to manage the process. Mr. Coleman assured Rep. Garcia that the FAA recognizes the importance of balancing safety with expediency and reiterated the agency’s commitment to improving the Part 450 process. Rep. Garcia requested specific data on current and future staffing levels dedicated to Part 450, emphasizing the need for transparency and accountability in addressing these challenges.
Rep. McLellan highlighted the importance of the Mid-Atlantic Regional Spaceport at Wallops Island, Virginia, one of only four FAA-licensed vertical launch facilities in the U.S. She emphasized the need for effective regulatory frameworks that protect human spaceflight participants and local communities while maintaining U.S. leadership in space. Rep. McLellan asked Mr. Coleman for an update on the memorandum of agreement (MOA) between NASA and the FAA, which aims to clarify licensing responsibilities, particularly regarding safety.Mr. Coleman responded that the MOA is currently being drafted and is a priority. He noted that the agreement is essential to minimizing duplication of efforts among federal agencies like the FAA, NASA, and the Space Force, as mandated by Space Policy Directive Two. The agreement seeks to delineate roles and responsibilities clearly for launch service providers at NASA ranges, such as Wallops Island, ensuring public safety and facilitating smooth operations.Rep. McLellan then asked what the FAA is doing to support a regular cadence of commercial launches at Wallops. Mr. Coleman praised Wallops as an excellent facility and mentioned ongoing efforts to collaborate with its leadership, including General Ted Mercer, to increase commercial activity. He highlighted the FAA’s work with companies like Rocket Lab to ensure timely licensing of their operations, thus supporting more frequent launches.Rep. McLellan also asked Mr. Cavossa to explain the broader impacts of launch and reentry regulations on people’s lives, even those not living near spaceports. Mr. Cavossa noted that commercial space activities, including satellite communications, GPS, national security, human spaceflight, and environmental data collection, are essential to daily life. However, he emphasized that current licensing processes can slow the entry of new vehicles and companies into the market, affecting the overall benefits that the commercial space industry provides to the country and its constituents.
Rep. Strong asked Mr. Coleman how the FAA plans to manage the increasing volume and complexity of commercial space transportation operations, noting that there are currently 30 to 40 active applications under Part 450. Mr. Coleman acknowledged the challenge, highlighting the FAA’s efforts to hire more technical staff, including flight safety analysts and engineers, despite fierce competition for these resources from NASA, the Department of Defense, and private industry. He also mentioned that the FAA is issuing advisory circulars to help the industry understand compliance requirements under Part 450. Rep. Strong then inquired about the impact of prioritization on license evaluations, specifically whether prioritization is affected once an application is within the 180-day evaluation stage. Mr. Coleman explained that prioritization has become necessary as workloads have increased and resources have become strained. The FAA prioritizes national security and civil space exploration concerns, placing them at the top of the list when resources are limited.Rep. Strong also asked if applicants can modify their licenses once they enter the 180-day evaluation stage. Mr. Coleman confirmed that modifications are allowed and noted that the FAA often pauses the evaluation process, a practice called “tolling,” to give applicants the opportunity to correct errors or provide missing information, which helps avoid denials and facilitates compliance. Finally, Rep. Strong raised concerns about the long delay in granting a reentry license to Sierra Space, which has been waiting since 2016. He questioned why it has taken over 3,000 days to obtain the necessary permit. Mr. Coleman responded that the issue lies with compliance requirements. He emphasized that the FAA is actively working with Sierra Space to address compliance needs and expressed optimism about reaching a resolution.
Rep. Stevens began by praising Mr. Coleman for his dedication and career in public service, noting the broader bureaucratic challenges the FAA faces, particularly in the commercial space sector. She highlighted the need for stronger leadership and strategic coordination from higher levels of government to push forward America’s goals in space exploration. Rep. Stevens expressed concern about the delay in establishing the Aerospace Rulemaking Committee (SPARC). Given that SPARC committees can take years to produce recommendations, she worried that the opportunity to make meaningful impacts before the 2026 transition deadline for new human spacecraft regulations was closing.Mr. Cavossa explained that while SPARC is a vital long-term solution, there are immediate process fixes the FAA can implement now to address current challenges without waiting for SPARC’s full recommendations. Stevens suggested that broader government action, potentially at the White House level, might be necessary to expedite progress. Mr. French added that two SPARCs are currently addressing different issues, including insurance and human space regimes. He emphasized that SPARC provides an environment for companies to offer detailed recommendations, which can lead to more practical and complete implementations by the FAA AST.Rep. Stevens also referenced a bipartisan amendment she worked on, aimed at granting new authorities to the FAA AST to streamline processes and support industry competitiveness. Mr. Cavossa supported the amendment, stating that it addresses many of the challenges discussed in the hearing and focuses the FAA AST on urgent issues.
Rep. McCormick opened his remarks by expressing bipartisan dissatisfaction with the FAA’s regulatory and licensing processes, which he argued are holding back U.S. competitiveness in the global space race. He highlighted the pivotal role of private industry, particularly companies like SpaceX, ULA, and Blue Origin, which are leading space exploration and innovation at an unprecedented pace. Rep. McCormick questioned Mr. Coleman about why the same licensing processes that have been approved before are now causing delays, particularly given that the industry is making continuous technological advancements. He pressed Mr. Colemanon how many advisory circulars had been issued to speed up the process and how the FAA was holding itself accountable to keep the U.S. competitive. Mr. Coleman responded that safety is the FAA’s primary focus and that changes in missions and technologies, such as modifications requested by companies, necessitate further reviews, which can cause delays. Rep. McCormick countered by emphasizing that private companies are well aware of the risks and are motivated to maintain safety independently because failing to do so would jeopardize their business. He urged the FAA to streamline its processes, warning that excessive regulation would cause the U.S. to fall behind global competitors like China, Russia, and Iran. Mr. Coleman reiterated that while the FAA is committed to supporting industry growth, regulatory compliance cannot be compromised, and he emphasized the importance of maintaining public safety as they work to improve the licensing process.
Rep. Webster’s questioning focused on the FAA’s commitment to establishing the Space Aerospace Rulemaking Committee (SPARC) and questioned why this group, which was supposed to be in place by the end of summer, had not yet been established. Mr. Coleman assured Rep. Webster that the FAA was still within its projected timeline, as the charter was being reviewed, and that the group would be operational soon. Rep. Webster then turned to Part 450’s goal of approving multiple launches under a single license, noting that this objective had not yet been fully realized. Rep. Webster asked why multiple launch licenses were not yet common practice and what barriers were preventing this from happening. Mr. Coleman explained that companies often end up requesting single-mission licenses due to time constraints and imminent launch schedules. He highlighted that while Part 450 is designed to accommodate broader licensing for multiple missions, companies frequently default to narrower applications to meet tight timelines. Rep. Webster pressed further, asking if the FAA expects to see progress toward multiple launches being approved under a single license in the near future. Mr. Coleman expressed optimism, stating that Part 450 is still a relatively new regulation, and he believes that as both the FAA and the industry continue to adapt, the process will become more efficient and better suited for multi-mission approvals.
Rep. Fong began by delving into Part 450’s intended expansion to allow multiple launches under a single license, questioning why this goal had not yet been achieved. He asked Mr. Colemanwhat specific challenges were hindering this process and how the FAA could facilitate more streamlined licensing for multiple launches. Mr. Coleman responded that many companies underestimate the effort required to demonstrate compliance under Part 450’s performance-based framework, which requires companies to show how they’ll meet safety criteria rather than simply following prescriptive methods. Rep. Fong asked for specifics on what the FAA is looking for in these applications and why they are being delayed. Mr. Coleman noted that companies must establish methodologies that account for future missions, requiring substantial upfront work. He acknowledged that more advisory circulars are being developed to help guide companies through this process and improve compliance. Rep. Fong also raised concerns about prioritization, asking how the FAA handles situations where national security or other critical missions need to be expedited. Mr. Coleman explained that the FAA prioritizes missions based on their impact on national security, civil space exploration, and critical needs such as supplying the International Space Station. When these high-priority missions are identified, they are moved to the top of the FAA’s list to ensure timely execution. Rep. Fong concluded by questioning whether the FAA’s current approach is consistent with the agency’s stated goal of reducing the frequency of license applications. Mr. Coleman reiterated that once companies demonstrate robust compliance methodologies, they should be able to conduct multiple launches without repeated applications, which would streamline the process in the long term.

SPECIAL TOPICS

Implementation of FAA Part 450 Regulations:

Part 450 was intended to streamline the licensing process for commercial space launches and reentries by replacing prescriptive requirements with performance-based criteria. However, the implementation has been fraught with challenges, including delays, confusion, and a lack of clear guidance. This topic is crucial because it directly affects the pace at which U.S. companies can conduct space missions, impacting the nation’s ability to maintain leadership in the rapidly evolving global space race.

Balancing Safety with Efficiency in Licensing Processes:

The FAA’s primary mandate is to ensure public safety during space operations, but the agency’s focus on thorough compliance checks has been criticized for slowing down the licensing process. The hearing highlighted the tension between upholding safety standards and the need for faster approvals to support the increasing pace of commercial space activities. This balance is important because it affects the industry’s ability to innovate, attract investment, and compete internationally without compromising safety.

U.S. Competitiveness in the Global Space Race:

The hearing repeatedly stressed the importance of U.S. competitiveness in space, particularly in relation to adversaries like China, Russia, and Iran. Regulatory delays were highlighted as potential weak points that could allow these nations to overtake the U.S. in critical areas of space exploration and technology. This topic is significant because it underscores the broader strategic implications of maintaining leadership in space, not just for economic growth but also for national security and geopolitical influence.

ADD TO THE NIMITZ NETWORK

Know someone else who would enjoy our updates? Feel free to forward them this email and have them subscribe here.

Blog