LegiStorm

Summary:

U.S. companies have always been involved in spaceflight as contractors to government agencies. Increasingly, though, space is becoming commercial. A majority of U.S. satellites are now commercially owned, providing commercial services, and launched by commercial launch providers. Congressional and public interest in space is also becoming more focused on commercial activities, such as companies developing reusable rockets or collecting business data with fleets of small Earth-imaging satellites. This report addresses two distinct but closely related topics: how the federal government regulates, oversees, and promotes the commercial space sector; and how the federal government itself uses (or might in the future use) commercial space capabilities. Multiple federal agencies regulate the commercial space industry, based on statutory authorities that were enacted separately and have evolved over time. The Federal Aviation Administration (FAA) licenses commercial launch and reentry vehicles (i.e., rockets and spaceplanes) as well as commercial spaceports. The National Oceanic and Atmospheric Administration (NOAA) licenses commercial Earth remote sensing satellites. The Federal Communications Commission (FCC) licenses commercial satellite communications. The Departments of Commerce and State license exports of space technology. In response to industry concerns about the complexity of this regulatory framework, the Administration and Congress have made several reform proposals, including Space Policy Directive–2, Streamlining Regulations on Commercial Use of Space; the American Space Commerce Free Enterprise Act (H.R. 2809); and the Space Frontier Act of 2018 (S. 3277). How the federal government makes use of commercial space capabilities is also evolving. The National Aeronautics and Space Administration (NASA) used to own and operate the space shuttles that contractors built for it, but since 2012 it has contracted with commercial service providers to deliver cargo to the International Space Station using their own spacecraft. The Department of Defense (DOD) has its own satellite communications capabilities, but it also procures communications bandwidth from commercial satellite companies. Agencies are considering a host of new opportunities, including acquisition of weather data from commercial satellites, acquisition of science data from commercial lunar landers, and expanded commercial utilization of the International Space Station. As Congress considers these topics, some of the questions that may arise include:  Should the federal regulatory framework for commercial space activities be consolidated? Reorganization proposals include transferring the FAA’s licensing responsibilities to the Office of the Secretary of Transportation, consolidating NOAA’s licensing responsibilities and other Department of Commerce functions in the Office of the Secretary of Commerce, and creating a new civil authority for space situational awareness in either the FAA or the Department of Commerce.  How can the commercial space licensing process be made simpler, more timely, and more transparent? One focus of this discussion has been the process for interagency consultation on license applications for commercial remote sensing satellites. The challenge for that process is balancing industry’s need for timeliness and transparency with the government’s need to meet national security and foreign policy objectives.  How should federal regulatory policies be adjusted as the commercial space industry develops new capabilities and applications? For example, there is currently no clear mechanism for new space applications, not already subject to FAA, NOAA, or FCC regulation, to be authorized and supervised as mandated by the Outer Space Treaty. Current law restricts the FAA’s authority to regulate the safety of commercial spacecraft with human occupants.  What government space activities can or should be conducted by commercial entities? How can government and industry best work together? As the commercial space industry’s capabilities expand, there may be new opportunities for agencies to execute programs via commercial contracts, but stakeholders may not always agree on which programs are suitable for a commercial approach.