SPACE Act of 2015Dr. Sarah J. Nilsson, Esq.

A3ir Conference

January 2016

House Resolution (H.R.) 2262• Passed the House of Representatives-

May 21, 2015

• Currently in Senate

• After that, it still needs signature of

President

• Then, finally it becomes law

House Resolution (H.R.) 2262An Act to facilitate a pro-growth

environment for the developing

commercial space industry by

encouraging private sector

investment and creating more

stable and predictable regulatory

conditions, and for other purposes.

SPACE Act of 2015

Spurring

Private

Aerospace

Competitiveness

and

Entrepreneurship

Background

51 United States Code (U.S.C.) Subtitle V, Chapter 509

authorizes the Secretary of Transportation and, through

delegations, the Federal Aviation Administration (FAA)

Associate Administrator for Commercial Space

Transportation, to oversee, license, and regulate

both launches and reentries, and the operation of

launch and reentry sites when carried out by U.S.

citizens of within the U.S.

Background

51 United States Code (U.S.C.)

Subtitle V, Chapter 509 is formerly the

Commercial Space Launch Act of

1984, as amended

Background

Chapter 509 directs the FAA to exercise this

responsibility consistent with public health

and safety, safety of property, and the

national security and foreign policy

interests of the U.S., and to encourage,

facilitate, and promote commercial space

launch and reentry by the private sector.

Background

The Office of Commercial Space Transportation

(AST) was established in 1984 as part of the

Office of the Secretary of Transportation within

the Department of Transportation (DOT).

In November 1995, AST was transferred to the

FAA as their only space-related line of business.

Background

On May 21, 1958, Senator A. S. "Mike" Monroney (D-

OK) introduced a bill to create an independent Federal

Aviation Agency to provide for the safe and efficient

use of national airspace. Two months later, on

August 23, 1958, the President signed the Federal

Aviation Act, which transferred the Civil Aeronautics

Authority's functions to a new independent Federal

Aviation Agency responsible for civil aviation safety.

Background“Our continuing

mission is to

provide the

safest, most

efficient

aerospace

system in the

world.”Michael Huerta, Administrator

Background

The Commercial Space Launch Amendments Act

(CSLAA) of 2004 assigned the FAA the

responsibility for regulating commercial

human space flight.

In December 2006, the FAA issued human space

flight regulations in accordance with its authority

to protect public health and safety.

Background

The CSLAA prohibits the FAA from proposing regulations

governing the design or operation of a launch vehicle to

protect the health and safety of crew and space flight

participants until October 2015, or until a design feature

or operating practice has resulted in a serious or fatal

injury, or contributed to an event that posed a high risk of

causing a death or serious injury, to crew or space flight

participants during a licensed or permitted commercial

human space flight.

Background

Until such time, the CSLAA only requires that

a space flight participant be informed of the

risks of taking a ride on a rocket.

The FAA may also issue regulations setting

reasonable requirements for space flight

participants, including medical and training

requirements.

Background

The CSLAA mandates that any regulations

governing the design or operation of a

launch vehicle to protect the health and

safety of crew and space flight participants

must take into consideration the evolving

standards of safety in the commercial space

flight industry.

Background

Limits in Regulatory Authority

The U.S Congress has only incrementally expanded

DOT/FAA authority over commercial space

transportation

1984 – included launch authority

1998 – added reentry authority

2004 – added firm authority over commercial human

space flight

Background

Limits in Regulatory Authority

U.S. law contains limitations on FAA authority

The FAA can only regulate to the extent

necessary

The FAA does not certify space launch vehicles –

it licenses the launch operation

Mission success is the responsibility of the

commercial launch operator

Background is over

Now for the SPACE Act of 2015

SPACE Act of 2015

TITLE I – COMMERCIAL SPACE LAUNCH

TITLE II – SPACE RESOURCE EXPLORATION

AND UTILIZATION

TITLE III – COMMERCIAL REMOTE SENSING

TITLE IV – OFFICE OF SPACE COMMERCE

TITLE I - COMMERCIAL SPACE LAUNCH

United States Code

Title 51 – National and Commercial Space Programs

Chapter 509 – Commercial Space Launch Activities

Section 50905 – License applications and

requirements

Section 101 – Consensus Standards

Interim Industry Voluntary Consensus Standards Report

- From Secretary, in consultation with Commercial Space

Transportation Advisory Committee

- To Committee on Science, Space, and Technology of House

of Representatives

- And to Committee on Commerce, Science, and

Transportation of Senate

- On industry progress and best practices in commercial

space transportation

- Due no later than December 31, 2016, 2018, 2020, and

2022

Section 101 – Consensus Standards

Interim Report on Knowledge and Operational

Experience

- From Secretary

- To Committee on Science, Space, and Technology of House

of Representatives

- And to Committee on Commerce, Science, and

Transportation of Senate

- On industry knowledge and operational experience

gained while providing flight services for compensation or

hire

- Due no later than December 31, 2018, 2020, and 2022

Section 101 – Consensus StandardsIndependent Review

- From independent, private systems engineering and

technical assistance organization or standards development

organization contracted by Secretary

- To Committee on Science, Space, and Technology of House

of Representatives

- And to Committee on Commerce, Science, and

Transportation of Senate

- An assessment of readiness of commercial space

industry and Federal Government to transition to a safety

framework that may include regulations

- Due no later than December 23, 2023

Section 101 – Consensus Standards

Learning Period

- Secretary may propose regulations

under this subsection

- Take into consideration the evolving

standards of the commercial space

flight industry

- Beginning on December 31, 2025

Section 101 – Consensus Standards

Communication and Transparency

- Secretary of Transportation may discuss

potential approaches , potential performance

standards, or any other topic related to

commercial space industry

- Includes observations, findings, and

recommendations from Commercial Space

transportation Advisory Committee

- Beginning on December 31, 2025

Section 102 – International Launch Competitiveness

Purpose

Provide for updating the methodology used to

calculate the maximum probable loss from

claims under Section 50914 (Liability Insurance

and Financial Responsibility Requirements), with

a validated risk profile approach to provide

reasonable maximum probable loss values

associated with potential third party losses from

commercially licensed launches

Section 102 – International Launch Competitiveness

Maximum Probable Loss Plan

- No later than 180 days from enactment

- From Secretary of Transportation

- To Committee on Science, Space, and Technology of House of

Representatives

- And to Committee on Commerce, Science, and Transportation

of Senate

- Plan to update the methodology used to calculate the

maximum probable loss from claims under Section 50914

(Liability Insurance and Financial Responsibility Requirements),

through use of a validated risk profile approach

Section 102 – International Launch Competitiveness

Independent Assessment

- No later than 270 days after transmittal of plan

above

- From Comptroller General

- To Committee on Science, Space, and

Technology of House of Representatives

- And to Committee on Commerce, Science, and

Transportation of Senate

- Assessment

Section 102 – International Launch Competitiveness

Launch Liability Extension

- 50915 (Paying Claims exceeding

liability Insurance and Financial

Responsibility Requirements)

- December 21, 2016 deadline

- December 31, 2025

Section 103 – Launch License Flexibility

- 50906 (Experimental Permits)

- Amending and inserting language

- Adding that Secretary may issue a permit

under this section notwithstanding any

license issued under this chapter

- Adding that issuance of a license shall

not invalidate a permit

Section 104 – Government Astronauts

- 50902 (Definitions)

- Adding government astronaut

(employee of US government OR

foreign government party to

Intergovernmental Agreement)

- Adding space flight participant

Section 105 – Indemnification for Space Flight Participants

- 50914 (Liability Insurance and

Financial Responsibility

Requirements)

- Amending some language

Section 106 – Independent Study of Indemnification for Space Flight

Participants- Not later than 1 year after enactment

- From Comptroller General

- To Committee on Science, Space, and Technology of

House of Representatives

- And to Committee on Commerce, Science, and

Transportation of Senate

- Detailing results of study of issues associated with

space flight participants and potential third party

claims that could arise from a potential accident

Section 107 – Federal Jurisdiction

- 50914 (Liability Insurance and

Financial Responsibility Requirements)

- Adding new language

- Any action or tort arising from a

licensed launch or reentry shall

be the sole jurisdiction of the

Federal courts.

Section 108 –Cross-Waivers

- 50914 (Liability Insurance and Financial

Responsibility Requirements)

- Adding new language

- A launch or reentry license issued or

transferred shall contain a provision

requiring the licensee or transferee to

make a reciprocal waiver of claims with

its contractors, subcontractors, and

customers…

Section 109 –Orbital Traffic Management

Sense of Congress

Need for a framework that addresses space

traffic management of U.S. government

assets and U.S. private sector assets to

minimize the proliferation of debris

and decrease the congestion of the

orbital environment.

Section 109 –Orbital Traffic Management

- Study required: No later than 90 days from enactment

- From NASA in consultation with the FAA, Federal

Communications Commission (FCC), National Oceanic

and Atmospheric Administration (NOAA) and

Department of Defense (DoD)

- In arrangement with independent, nonprofit, private

systems engineering and technical assistance

organization

- Study frameworks for management of space traffic

and orbital activities

Section 109 –Orbital Traffic Management

- Report to Congress: no later than one year from

enactment

- From: Administrator

- To Committee on Science, Space, and

Technology of House of Representatives

- And to Committee on Commerce, Science, and

Transportation of Senate

- DoD still has authority to safeguard the

national security

Section 110 –State Commercial Launch Facilities

- Sense of Congress: State involvement, development,

ownership, and operation of launch facilities can

help enable growth of the Nation’s commercial

suborbital and orbital space endeavors and support

both commercial and government space programs.

- These State launch facilities are also subject to risks

in case of failures of commercial launch vehicles

- Thus States must take proper measure to secure

their investments and safety of third parties

Section 110 –State Commercial Launch Facilities

- Report required: no later than 1 year after enactment

- From Comptroller General

- To Committee on Science, Space, and Technology of

House of Representatives

- And to Committee on Commerce, Science, and

Transportation of Senate

- Report on potential inclusion of all government

property, including State and municipal property, in

existing indemnification regime established above

Section 111 –Space Support Vehicles Study

- No less than 1 year after enactment

- From Comptroller General

- To Committee on Science, Space, and Technology

of House of Representatives

- And to Committee on Commerce, Science, and

Transportation of Senate

- Report on use of space support vehicle

services in the commercial space industry

Section 112 –Streamline Commercial Space Launch Activities

Sense of Congress

Eliminating duplicative requirements and

approvals for commercial launch and reentry

operations will promote and encourage the

development of the commercial space sector.

Section 112 –Streamline Commercial Space Launch Activities

- Reaffirmation of Policy: Secretary of

Transportation still to oversee and coordinate

commercial launch and reentry

- Secretary of Transportation shall consult with

DoD, NASA, NOAA and heads of other

executive agencies

Section 112 –Streamline Commercial Space Launch Activities

- Reports: No later than 180 days after

enactment

- And annually thereafter

- Definitions: some amendments – launch to

U.S. government launch site and reenter to

U.S. government reentry site

Section 113 –Space Launch System Update

- Chapter 701

- Space Shuttle to Space Launch System

TITLE II - SPACE RESOURCE EXPLORATION AND UTILIZATION

United States Code

Title 51 – National and Commercial Space

Programs

Chapter 513 – Space Resource Exploration and

Utilization

Section 201 –Short Title

- Space Resource Exploration and Utilization

Act of 2015

Section 202 –Title 51 Amendment

- Chapter 513 – Space Resource Exploration

and Utilization

- 51301 – definitions

- Space Resource

- Asteroid Resource

- State

- United States Commercial Space Resource

Utilization Entity

Section 202 –Title 51 Amendment

- 51302 – Commercialization of space resource

exploration and utilization

- President acting through appropriate Federal

agencies shall facilitate exploration,

discourage government barriers, promote

right of U.S.

- Report required: no later than 180 days after

enactment from President to Congress

Section 202 –Title 51 Amendment

- 51303 – Legal Framework

- Property Rights: Any asteroid resources

obtained in outer space are the property

of the entity that obtained such

resources, which shall be entitled to all

property rights thereto, consistent with

applicable provisions of Federal law and

existing international obligations.

Section 202 –Title 51 Amendment

- 51303 – Legal Framework

- Safety of Operations: U.S. commercial space

resource utilization entity shall avoid causing

harmful interference in outer space.

- Civil action for relief from harmful interference

- Rule of Decision: First in time to conduct the

activity

- Exclusive Jurisdiction: U.S. District Courts have

original jurisdiction

TITLE III - COMMERCIAL REMOTE SENSING

United States Code

Title 51 – National and Commercial Space

Programs

Chapter 601 – Land Remote Sensing Policy

Section 301 –Annual Reporting

- 60126 – Annual Reporting

- From Secretary

- To Committee on Science, Space, and Technology

of House of Representatives

- And to Committee on Commerce, Science, and

Transportation of Senate

- No later than 180 days after enactment of

SPACE Act of 2015

Section 302 –Statutory Update Report

- No later than 1 year after enactment

- From Secretary, in consultation with other Federal agencies,

NOAA’s Committee on Commercial Remote Sensing

- To Committee on Science, Space, and Technology of

House of Representatives

- And to Committee on Commerce, Science, and

Transportation of Senate

- On statutory updates to protect national security, privacy,

protect U.S. industrial base, and reflect current state of the

art of remote sensing , instruments, or technologies

TITLE IV - OFFICE OF SPACE COMMERCE

United States Code

Title 51 – National and Commercial Space

Programs

Chapter 507 – Office of Space Commercialization

Commerce