Regulatory Alert: FAA Releases Final Rule Streamlining Launch and Reentry Licensing Requirements for Commercial Space Operators
October 15, 2020
Today the Federal Aviation Administration (FAA) released a final rule streamlining the launch and reentry licensing requirements for commercial space vehicle operators. The new regulatory framework, implemented pursuant to a 2018 National Space Council directive, will allow these operators to move away from outdated and prescriptive licensing requirements toward performance-based standards aimed at promoting further growth in the industry and bringing new, more innovative vehicles to market.
This morning FAA held a virtual event, which included remarks from Secretary of Transportation Elaine Chao and FAA Administrator Steve Dickson, to make the announcement and allow senior FAA officials to discuss key details from the rule, which will go into effect 90 days after publication in the Federal Register. FAA's press release is available here.
AAAE provided comments to the agency in response to the original proposal, emphasizing the need to safely integrate commercial space operations into the National Airspace System (NAS) and minimize disruptions to existing operations. AAAE, along with a number of other aviation organizations, specifically urged more stakeholder involvement in the licensing process to ensure the impacts on other NAS users are addressed. However, FAA responded in the rule today that any such impacts, particularly involving airspace efficiency, are outside the scope of this rulemaking and noted that these issues are being addressed through the Airspace Access Priorities Aviation Rulemaking Committee (ARC) and other initiatives.
Background. In March 2019, FAA released a proposed rule that would streamline federal regulations to obtain a space vehicle operator license, the safety requirements, and the terms and conditions of a vehicle operator license. As reported in a March 2019 Regulatory Alert, the rulemaking was in response to the National Space Council's 2018 "Space Policy Directive 2," which directed the Secretary of Transportation to review and revise the Department's commercial space launch and re-entry licensing regulations. The proposal advanced recommendations from the Streamlined Launch and Reentry Licensing Requirements ARC, which urged the FAA to provide a performance-based regulatory approach to commercial space transportation. That approach includes creating more flexibility for operators to meet safety requirements.
AAAE's Response to Proposed Rule. In its August 2019 comments to the proposed rule, AAAE emphasized that any updates to the FAA's licensing framework must adhere to the general principle that the safety of airport operations and the minimization of operational disruptions to other stakeholders should be of the highest priority. Specific recommendations focused on improving information sharing and coordination, and ensuring relevant entities and personnel, especially at the local level, were properly informed and prepared to deal with potential emergencies from launches. You can view AAAE's response to the FAA here.
Highlights from FAA's Final Rule. One of the key changes included in the 785-page final rule, informally known as "SLR-2," is the ability for operators to obtain a single license that can be used to support multiple launches or reentries from potentially multiple launch-site locations. AAAE had pushed back on this proposal because of concerns that FAA may not fully assess the risks and unique local considerations that are specific to individual sites. However, FAA appeared to recognize this concern and reassure stakeholders in the preamble, indicating that FAA "will perform a thorough and complete review of all sites where a vehicle is authorized to operate."
Additional highlights from the new rule include procedural changes that will reduce the time to review license applications; and changes in ground safety oversight to better fit the safety risks and reduce duplicative requirements when operating at a federal site. FAA estimates that the licensing requirement changes will result in cost savings to industry of about $53.9 to $68.3 million over a 10-year period. In her remarks today, Secretary Chao indicated that she expects about 100 launches per year under the new framework, up from about 33 launches in 2018 and close to 30 in 2019.
What's Next? The new rule for commercial space vehicle operators will go into effect 90 days after publication in the Federal Register, which is expected to occur sometime in the next few weeks. FAA will begin a series of efforts to educate industry on the new requirements, including hosting a Part 450 Workshop on November 4-6 to discuss the changes with interested stakeholders. AAAE will remain engaged with FAA as a member of the Airspace Access Priorities ARC and in other initiatives to ensure these operations are safely integrated into the NAS and not causing significant disruptions to existing operations by other NAS users.
If you have any questions or other feedback, please contact Justin Barkowski at justin.barkowski@aaae.org.
Today the Federal Aviation Administration (FAA) released a final rule streamlining the launch and reentry licensing requirements for commercial space vehicle operators. The new regulatory framework, implemented pursuant to a 2018 National Space Council directive, will allow these operators to move away from outdated and prescriptive licensing requirements toward performance-based standards aimed at promoting further growth in the industry and bringing new, more innovative vehicles to market.
This morning FAA held a virtual event, which included remarks from Secretary of Transportation Elaine Chao and FAA Administrator Steve Dickson, to make the announcement and allow senior FAA officials to discuss key details from the rule, which will go into effect 90 days after publication in the Federal Register. FAA's press release is available here.
AAAE provided comments to the agency in response to the original proposal, emphasizing the need to safely integrate commercial space operations into the National Airspace System (NAS) and minimize disruptions to existing operations. AAAE, along with a number of other aviation organizations, specifically urged more stakeholder involvement in the licensing process to ensure the impacts on other NAS users are addressed. However, FAA responded in the rule today that any such impacts, particularly involving airspace efficiency, are outside the scope of this rulemaking and noted that these issues are being addressed through the Airspace Access Priorities Aviation Rulemaking Committee (ARC) and other initiatives.
Background. In March 2019, FAA released a proposed rule that would streamline federal regulations to obtain a space vehicle operator license, the safety requirements, and the terms and conditions of a vehicle operator license. As reported in a March 2019 Regulatory Alert, the rulemaking was in response to the National Space Council's 2018 "Space Policy Directive 2," which directed the Secretary of Transportation to review and revise the Department's commercial space launch and re-entry licensing regulations. The proposal advanced recommendations from the Streamlined Launch and Reentry Licensing Requirements ARC, which urged the FAA to provide a performance-based regulatory approach to commercial space transportation. That approach includes creating more flexibility for operators to meet safety requirements.
AAAE's Response to Proposed Rule. In its August 2019 comments to the proposed rule, AAAE emphasized that any updates to the FAA's licensing framework must adhere to the general principle that the safety of airport operations and the minimization of operational disruptions to other stakeholders should be of the highest priority. Specific recommendations focused on improving information sharing and coordination, and ensuring relevant entities and personnel, especially at the local level, were properly informed and prepared to deal with potential emergencies from launches. You can view AAAE's response to the FAA here.
Highlights from FAA's Final Rule. One of the key changes included in the 785-page final rule, informally known as "SLR-2," is the ability for operators to obtain a single license that can be used to support multiple launches or reentries from potentially multiple launch-site locations. AAAE had pushed back on this proposal because of concerns that FAA may not fully assess the risks and unique local considerations that are specific to individual sites. However, FAA appeared to recognize this concern and reassure stakeholders in the preamble, indicating that FAA "will perform a thorough and complete review of all sites where a vehicle is authorized to operate."
Additional highlights from the new rule include procedural changes that will reduce the time to review license applications; and changes in ground safety oversight to better fit the safety risks and reduce duplicative requirements when operating at a federal site. FAA estimates that the licensing requirement changes will result in cost savings to industry of about $53.9 to $68.3 million over a 10-year period. In her remarks today, Secretary Chao indicated that she expects about 100 launches per year under the new framework, up from about 33 launches in 2018 and close to 30 in 2019.
What's Next? The new rule for commercial space vehicle operators will go into effect 90 days after publication in the Federal Register, which is expected to occur sometime in the next few weeks. FAA will begin a series of efforts to educate industry on the new requirements, including hosting a Part 450 Workshop on November 4-6 to discuss the changes with interested stakeholders. AAAE will remain engaged with FAA as a member of the Airspace Access Priorities ARC and in other initiatives to ensure these operations are safely integrated into the NAS and not causing significant disruptions to existing operations by other NAS users.
If you have any questions or other feedback, please contact Justin Barkowski at justin.barkowski@aaae.org.
