House Science, Space, and Technology Committee Hearing: “Risks and Rewards: Encouraging Commercial Space Innovation While Maintaining Public Safety” 

U.S. House Science, Space, and Technology Committee

Subcommittee on Space and Aeronautics Hearing

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

Tuesday, September 10, 2024  

Watch the Hearing

Introduction

The House Science, Space, and Technology (HSST) Subcommittee on Space and Aeronautics held a hearing entitled “Risks and Rewards: Encouraging Commercial Space Innovation While Maintaining Public Safety” on Tuesday, September 10, 2024. The purpose of the hearing was to discuss ongoing efforts to streamline licensing for launch and related activities as well as to evaluate the appropriate structure for regulating commercial space activities outside the purview of the current regulatory structure. During the hearing, lawmakers and witnesses focused on several key topics, including the Part 450 pre-application process, the 180-day application review timeframe, advisory circulars (ACs), environmental reviews, and the resources and staffing with respect to the Federal Aviation Administration’s (FAA) Office of Commercial Space Transportation (AST). More Information.

Key Highlights

• Mr. Coleman highlighted that AST has met its goal of processing accepted applications within 180-days 98 percent of the time, with an average of 151 days for issuing new licenses. Only one instance exceeded the 180-day mark, and six licenses have been issued under Part 450.
• Mr. Coleman acknowledged that meeting the March 2026 deadline for transitioning to Part 450 regulations appears to be “very challenging.”
• Mr. Coleman confirmed that a MoU with NASA is being drafted. He stressed that they are working diligently to finalize it, ensuring clear roles and responsibilities for launch service providers operating at NASA ranges.
• To support compliance with Part 450, the AST plans to release up to ten ACs this year to further clarify regulatory requirements.
• The establishment of the aerospace rulemaking committee (SpARC) announced is progressing as scheduled, with the charter drafted and under review. Mr. Coleman expects the committee to be fully established by early fall.
• Ranking Member Lofgren expressed interest in Mr. French’s “chess clock” suggestion, considering it a valuable idea worth exploring. She also emphasized the need to prioritize national security issues, as raised by Ms. Meredith.
• Witnesses agreed that environmental reviews are becoming an increasingly important and impactful factor in the licensing process, highlighting its role as an emerging area in launch regulations.

Witnesses

• 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

Opening Statements

Full Committee Chairman Frank Lucas (R-OK)

In his opening statement, Chairman Lucas stressed the importance of maintaining U.S. leadership in science and technology, emphasizing that this requires fostering the growth of commercial space industry. He highlighted that today’s hearing would assess the effectiveness of the FAA’s 2020 final rule, which implemented a performance-based approach to launch and reentry licensing, and evaluate how well it aligned with the goals of Space Policy Directive-2 (SPD-2). Chairman Lucas also addressed broader regulatory challenges, criticizing the National Space Council’s (NSpC) mission authorization proposal for creating more regulatory burdens, while advocating for advancing the Commercial Space Act (H.R. 6131). Read the Full Statement.

Full Committee Ranking Member Zoe Lofgren (D-CA)

In her opening statement, Ranking Member Lofgren emphasized the critical role of the launch and reentry industry in supporting not only the commercial space sector, but also civil and national security space programs. She acknowledged that while the expanding complexity of launch operations presents challenges, it is a positive sign of the industry’s progress, provided that adequate support and resources are available to manage it. She noted that Congress, in a bipartisan effort, recognizes the need to better equip the FAA to support the commercial space industry. Despite recent budget increases for the AST, Ranking Member Lofgren stressed that further increases are needed, particularly to hire additional staff to handle the growing workload. She also pointed out that budget increases alone may not be sufficient to address the challenges. Read the Full Statement.

Subcommittee Chairman Brian Babin (R-TX)

In his opening statement, Chairman Babin highlighted his highest priorities as Subcommittee Chairman have been to ensure U.S. leadership in space exploration and maintaining a strong commercial space industry. He expressed frustration with the progress of the Part 450 licensing process under the FAA, which he believes is hampering U.S. industry and putting the nation at a disadvantage compared to the People’s Republic of China (PRC). Chairman Babin criticized the inefficiencies in the launch licensing process, citing issues such as prolonged application times, duplicative reviews, and unclear guidance. He emphasized the need for improvements to Part 450, including potential reforms, the formation of rulemaking committees, additional ACs, and the development of a new electronic filing system to expedite application processing. He also raised concerns about the national security risks posed by delays in space missions, stressing the importance of U.S. leadership in returning to the Moon. To address these challenges, Chairman Babin referenced the Commercial Space Act as a key measure to streamline regulatory processes for the commercial space sector. Read the Full Statement.

Subcommittee Ranking Member Eric Sorensen (D-IL)

In his opening statement, Ranking Member Sorensen underscored the critical role of launch and reentry services, which are predominantly provided by the commercial sector, in advancing civil, commercial, and national security space activities. He emphasized the importance of the FAA adapting to the increasing frequency of launches to effectively manage its licensing and safety responsibilities. Ranking Member Sorensen outlined key challenges for the FAA, including transitioning to updated launch and reentry regulations, navigating licenses for innovative systems and operational concepts, and overseeing the developing commercial human spaceflight industry and its safety framework. He highlighted that the hearing presents a vital opportunity to evaluate how best to support both the FAA and the commercial space industry during this period of rapid expansion. Read the Full Statement.

Witness Testimony

Mr. Kelvin Coleman, Associate Administrator for FAA, AST

In his testimony, Mr. Coleman highlighted the increasing complexity and demand for FAA licensing due to the growth in commercial space operations. He noted that the FAA is on track to exceed last year’s operations by over 30% and has successfully licensed more than 800 U.S. commercial space operations over its 40-year history, maintaining a strong safety record. Mr. Coleman emphasized that safety is the FAA’s top priority, and the agency has consistently met the legal requirement to issue new licenses within 180-days 98 percent of the time, averaging 151 days. With recent congressional support, the FAA has increased its staffing to manage the growing demand. He also outlined several initiatives aimed at improving the licensing process, including offering office hours and workshops, providing checklists and visual tutorials, issuing ACs, and investing in new tools for greater efficiency. Above all, Mr. Coleman stressed the importance of submitting thorough and complete applications to speed up the licensing process, noting that minimizing amendments can help prevent delays. He concluded by discussing Part 450, which mandates that all licenses be issued under this rule by March 2026. He urged industry stakeholders to submit their Part 450 applications early and not wait till the “11^th hour,” expressing confidence that the rule will improve efficiency, safety, and innovation within the industry. Read the Full Statement.

Mr. Dave Cavossa, President, CSF

In his testimony, Mr. Cavossa highlighted the commercial space industry’s commitment to public safety and its track record of successful launches. However, he expressed concerns about the implementation of the FAA’s Part 450 launch and reentry regulations, warning that the current implementation could hinder innovation and U.S. competitiveness with the PRC. He explained that while Part 450 was intended to streamline licensing and provide a performance-based framework, its current application has led to severe delays, confusion, and increased costs for companies. This, he argued, is threatening the industry’s ability to launch new vehicles, attract investment, and maintain its leadership position. Mr. Cavossa identified several issues, including

• Pre-Application Process – He expressed that companies are experiencing significant delays and uncertainty due to unclear compliance guidance, resulting in prolonged and costly pre-application reviews.
• Missing ACs – He highlighted that essential guidance documents needed to implement Part 450 are still not available, further complicating compliance.

To address these challenges, Mr. Cavossa proposed both immediate and long-term improvements:

• Immediate Changes – He recommended reinstating independent technical authority, providing clear internal guidance for pre-application reviews, and issuing the necessary ACs .
• Long-Term Solutions – He suggested enhancing the Part 450 SpARC and implementing a license application tracking tool.

Mr. Cavossa emphasized that the goal is not to eliminate Part 450 or launch licensing but to address its implementation challenges. He also recommended that Congress establish statutory timelines for compliance approvals, increase resources for the AST, and support relevant provisions of the Commercial Space Act, including the learning period extension, indemnification and liability extensions. Read the Full Statement.

Mr. Mike French, Founder, Space Policy Group, and Vice Chair, FAA AST Advisory Committee (COMSTAC)

In his testimony, Mr. French highlighted three key areas concerning the space industry:

• Safety and Growth – He noted that the U.S. space launch industry has seen substantial growth while maintaining a 100 percent public safety record. Mr. French praised AST for their effective regulatory oversight, which has ensured safety despite some high-profile incidents. These incidents, he argued, actually demonstrate the success of the regulatory framework rather than any shortcomings.
• Resources – He pointed out that the rapid expansion of the launch industry has not been matched by a corresponding increase in AST’s budget and staffing. He emphasized that this disparity has put a strain on the licensing process and delayed the development of new guidance and tools. While he acknowledged the steps Congress has taken to address these issues, he called for continued support to ensure that AST can meet the growing demands.
• Regulatory Challenges with Part 450 – He outlined several challenges associated with the new Part 450 regulations, which are intended to replace legacy regulations. He proposed several measures for Congress to consider:
  • Retain the 180-day time limit but implement a “chess clock” system for regulatory timelines to enhance transparency and efficiency.
  • Allow operators to continue using legacy regulations where ACs are still in development, giving the FAA time to finalize guidance under Part 450.
  • Offer operators the choice to use safety analyses from either AST or range authorities to avoid duplicative efforts.
  • Investigate potential environmental regulatory issues arising from increased launch activity.

Read the Full Statement.

Ms. Pamela L. Meredith, Chair, Space Law Practice Group, KMA Zuckert LLC

In her testimony, Ms. Meredith recognized that despite the AST’s goal to streamline and simplify regulations, Part 450 has become complex and challenging to navigate. While the performance-based requirements and flexibility options were intended to be beneficial, they often result in time-consuming evaluations and place a significant strain on FAA resources. She pointed out that the 180-day statutory review period is impeded by delays in the pre-application consultation process and the practice of tolling, where the FAA can pause the review to request additional information.

Overall, the licensing regime suffers from uncertainty, lack of transparency, and substantial delays. To improve efficiency, Ms. Meredith suggested that AST could:

• Prioritizing applications with compelling national or security interests.
• Focusing on existing applications over new pre-application consultations.
• Streamlining payload reviews and concentrating AST’s efforts on matters strictly within its jurisdiction.

She also highlighted the approaching deadline for transitioning to Part 450 by March 10, 2026, and stressed the importance of making this transition without disrupting current launch operations to ensure continued industry growth and stability. Read the Full Statement.

Question & Answer

• Chairman Babin entered a letter from SpaceX into the record without objection.
• In response to a question by Chairman Babin, Mr. Cavossa expressed concern that the current licensing process and its management are “creating drag” on the space industry, whereas the PRC prioritizes enabling their industry, often at the expense of safety. He noted that the goal is to ensure that the implementation of Part 450 does not further stifle innovation in the U.S. space sector.
• In response to a question by Chairman Babin about how the FAA leverages existing practices from other agencies to expedite application processing, Mr. Coleman explained that AST accepts analyses conducted by other federal agencies. Additionally, launch service providers conducting launches from federal ranges can utilize the ranges’ services to support their analyses.
• In response to a question by Chairman Babin, Mr. Coleman explained that the 151-day average does not account for the pre-application consultation period. He explained that this timeframe only measures the duration from when the application is accepted as complete to when a determination is made. He further clarified that pre-application consultation involves discussions between the regulator and the launch service provider regarding operations and compliance requirements. Once the application is submitted, the process shifts to evaluating its compliance with the regulations under Part 450.
• In response to a question by Ranking Member Sorensen, Mr. Coleman acknowledged that meeting the March 2026 deadline for transitioning to Part 450 regulations appears to be “very challenging.” He stated that the FAA will closely monitor progress with respect to achieving this deadline.
• In response to a question by Ranking Member Sorensen, Mr. French indicated that workforce issues related to AST will be discussed at the upcoming COMSTAC public meeting on September 16.
• In response to a question by Ranking Member Sorensen, Mr. French pointed out that environmental challenges might become a “new, emerging area” in the licensing process.
• In response to a question by Rep. Bill Posey (R-FL) about the licensing status of Starfighters, Mr. Coleman clarified that Starfighters is not currently on AST’s list of applications. He explained that the relevant legislation assigns the review responsibilities for Starfighters to a different part of the FAA under Title 49, whereas his organization operates under Title 51.
• Ranking Member Lofgren expressed interest in Mr. French’s chess clock suggestion, stating that it was worth considering. She also noted that the prioritization idea raised by Ms. Meredith, particularly in relation to national security issues, should be further explored.
• In response to a question by Ranking Member Lofgren, Mr. Coleman acknowledged that environmental issues are a significant concern. For instance, with SpaceX considering an increase in launches from Boca Chica, TX, the FAA has initiated a draft environmental assessment to evaluate the potential impacts. This document has been released to the public, and public meetings have been scheduled to discuss the impacts and gather input on how to address them.
• In response to a question from Rep. Mike Garcia (R-CA), Mr. Coleman explained that the successful execution of Part 450 depends on several factors, with a key one being adequate resources. He highlighted that the President’s FY25 budget request includes a $57 million increase for AST—the largest discretionary increase in its history—and expressed hope for its approval. He also stressed that the industry must play its part by submitting comprehensive, well-prepared applications that meet regulatory standards, which would minimize the need for multiple revisions and save both time and resources.
• In response to a question from Rep. Jennifer McClellan (D-VA), Mr. Coleman confirmed that a memorandum of understanding (MoU) or agreement with NASA is currently being drafted. He emphasized that they are working diligently to finalize it to establish clear roles and responsibilities for launch service providers operating at NASA ranges.
• In response to a question by Rep. Dale Strong (R-AL), Mr. Coleman detailed the FAA’s efforts to address the increased demand by aggressively hiring additional staff, including flight safety analysts and engineers. Despite these efforts, there is significant competition for these professionals from NASA, Department of Defense, and the private sector. To facilitate compliance with Part 450, the FAA is collaborating closely with the industry and has issued 17 ACs last year, with plans to release up ten this year to clarify compliance requirements.
• In response to a question by Rep. Daniel Webster (R-FL), Mr. Coleman confirmed that the establishment of the SpARC is on track to be completed by early fall. The charter has been drafted and is currently under review, with the committee expected to be established soon.
• In response to a question by Rep. Vince Fong (R-CA), Mr. Coleman explained that the goal is to approve methodologies that would facilitate multiple launches under a single approval process. While Part 450 aims to streamline this by allowing broader mission planning, most licenses issued so far have been for individual missions. He noted that companies often simplify their applications to single missions as launch dates approach, which may be why there hasn’t been a broader implementation.
• In response to a question by Rep. Fong, Mr. Coleman restated the prioritization of national security and civil space exploration missions, as well as missions to deliver cargo and crew to the International Space Station (ISS).

An archive of the previous markups and hearings coverage is available here.