The Regulatory Role of the Federal Aviation Administration in Space Transportation

1. The Regulatory Role of the Federal Aviation Administration in Space Transportation With regards to financial responsibility

2. Overview • U.S. regulatory structure • FAA’s authority and role • Financial and liability issues

3. Regulatory Structure • Congress • Executive Branch • Federal Aviation Administration – space transportation • Federal Communications Commissions – space communications • National Oceanic and Atmospheric Administration – remote sensing • Judiciary

4. AST Statutory Mission ELV Air Launch Launch & Reentry Sites RLV Launch & Reentry Sea Launch Human Space Flight

5. Statutory Authority • 51 U.S.C. SubtitleV, chapter 509 • Authorizes the Secretary of Transportation to authorize launch and reentry and operation of launch and reentry sites as carried out by U.S. citizens or within the United States. • Directs the Secretary to • Exercise this responsibility consistent with public health and safety, safety of property, and national security and foreign policy interests of the United States. • Encourage, facilitate and promote commercial space launches and reentries by the private sector.

6. Key U.S. Federal Launch Site Non-Federal FAA-Licensed Launch Site Proposed Non-Federal Launch Site ¨ · * U.S. Spaceports · Kodiak Launch Complex Mid-Atlantic Regional Spaceport California Spaceport · ¨ Mojave Airport Wallops Flight Facility Oklahoma Spaceport · · ¨ Spaceport America ¨ Edwards AFB · Vandenberg AFB Cecil Field Spaceport · ¨ White Sands Missile Range • Kennedy Space Center • Cape Canaveral Air Force Station * ¨ * Spaceport Florida

7. Types of Launch Sites Oklahoma Spaceport ELV California Spaceport Sea Launch Florida Spaceport Kodiak Launch Complex Mid-Atlantic Regional Spaceport Mojave Air and Space Port

8. Licensing - Financial responsibility • FAA imposes financial responsibility requirements • By requiring insurance or other means • Up to statutory limits • Third party claims--$500,000,000.00 • USG--$100,000,000.00 • Reciprocal waivers of claims • Conditional payment of claims (“indemnification”) • 14 C.F.R. part 440 governs

9. Licensing - Financial responsibility • Licensees must demonstrate financial responsibility to compensate for the maximum probable loss (MPL) from claims by: • A third party for death, bodily injury, or property damage or loss; and • The U.S. Government for damage or loss to government property. • The U.S. Government will seek a conditional payment for any claims above the insured amount (up to $1.5 billion as adjusted for inflation). • Subject to Congressional appropriation.

10. Financial Responsibility - Cross-Waivers • A licensee must sign reciprocal waivers of claims with its contractors, its customers, and the U.S. government. • Each party waives and releases claims against the other parties to the waivers and agrees to assume financial responsibility for: • Property damage it sustains, and • For bodily injury or property damage sustained by its own employees. • The purpose is to reduce litigation expenses by requiring launch participants to assume responsibility for their own losses. • Flight crew and space flight participants must execute reciprocal waivers of claims with the federal government.

11. Commercial Space Launch Amendments Act of 2004 • On December 23, 2004, President Bush signed into law the CSLAA, which: • Promotes the development of an emerging human space flight industry and • Makes the FAA responsible for regulating commercial human space flight • Establishes an “informed consent” regime for space flight participants

12. Definitions • Crew - employee of a licensee, or of a contractor or subcontractor of a licensee, who performs activities in the course of that employment directly relating to the launch, reentry or other operation of or in a launch vehicle or reentry vehicle that carries human beings. • Space flight participant - an individual, who is not crew, carried within a launch vehicle or reentry vehicle.

13. Informed Consent • Under section 50905 and 14 C.F.R. part 46O, a holder of a license or permit must inform any crew and space flight participants that the U.S. Government has not certified the launch vehicle as safe. • A licensee must inform a space flight participant in writing about • the risks of the launch and reentry • the safety record of the vehicle type, including government launches. • Legal interpretations: • http://www.faa.gov/about/office_org/headquarters_offices/agc/pol_adjudication/agc200/Interpretations/data/interps/2014/Graham-OGC-NASA%20-%20(2014)%20Legal%20Interpretation.pdf • http://www.faa.gov/about/office_org/headquarters_offices/agc/pol_adjudication/agc200/Interpretations/data/interps/2014/Graham-OGC-NASA%20-%20(2014)%20Legal%20Interpretation.pdf

14. Liability • Under federal law • Under state law