Commercial Space Industry Topic of House Committee Hearing

The House Science and Space Committee recently held a hearing focused on the commercial space industry as it looks ahead to new legislation regulating the sector.

"As this Committee prepares to consider commercial space legislation, it’s imperative that we keep U.S. international competitiveness at the top of our priorities."

House Science and Space Committee Chair Frank Lucas

The hearing was called to look into several issues faced by the commercial space industry and how they should be regulated. Of particular interest is the prospect of private space station, on-orbit servicing and manufacturing, and space resource utilization. Space activities already exist which do not clearly fall within the existing regulatory authority of DOT, DOC, FCC, or any other federal agency, which can lead to a perception of legal uncertainty.

During the Obama administration, the White House Office of Science and Technology Policy proposed that DOT serve as the authority to grant space authorizations. In the 2020 National Space Policy, the Trump Administration charged DOC with the task of developing a mission authorization process. Efforts to appoint a lead agency, whether through executive or legislative action, are ongoing. Discussions have centered not only on where to house this new authority, but also on the proper form of regulatory approach. Industry has advocated for a “light touch” approach with a presumption of approval; commercial operators seek regulatory certainty, but not at the cost of delays to their operations. A prevalent fear is that, due to the unprecedented nature of these space operations, a regulatory agency will take an overly-cautious approach towards its grant of approvals, slowing innovation and potentially prompting businesses to forum-shop overseas.

Other key issues included:

Space Situational Awareness
Regulation of Launch and Reentry
Remote Sensing Licensing
FCC Statutory Authority

Human Spaceflight of Particular Interest in Commercial Space Industry Hearing

Of particular interest is commercial human spaceflight. The learning period for human spaceflight established by Congress in 2004 and extended until 2023 currently will expire at the end of September. As this expiration date grows near, Congress must consider whether the commercial human spaceflight industry is ready for a regulatory safety framework, whether the nascent nature such activities merit another learning period extension, or whether a different approach is warranted at this time.

"In the early 2000s, Congress authorized the Secretary of Transportation to regulate aspects of commercial human spaceflight, but not until after the expiration of a “learning period” that would allow industry time to grow and supply regulators with data to inform appropriate regulations," said Committee Chair Frank Lucas (R-OK) in his opening statement.

'Congress has since extended this learning period twice after determining that industry was not sufficiently mature for additional regulation. The most recent extension, granted in 2015, will expire at the end of September. Congress must determine whether the current state of commercial human spaceflight merits an additional learning period extension, or whether to let the learning period come to an end.

"Congress also must address other pressing issues for commercial space operators, including the appropriate governance structure for both new and existing space activities, and how to advance space situational awareness to maintain safe operations in orbit," Lucas continued.

"As this Committee prepares to consider commercial space legislation, it’s imperative that we keep U.S. international competitiveness at the top of our priorities. Ensuring a robust commercial space sector is key to maintaining U.S. leadership in science and technology."

Among the witnesses at the hearing was Karina Drees, the recently named president of the Commercial Spaceflight Federation. Drees said the U.S. has a robust commercial space market that leads the world with an increasingly
diverse set of vehicles and capabilities. In recognition of innovation and cost-efficiencies offered by the private sector, many civil and national security federal agencies are transitioning to rely on the commercial industry to procure data and services from commercial providers instead of relying solely on Government-developed and operated systems. Still, she said, Congress has an important role to play.

"The future pace of development of this industry – and the retention of our nation as the flag of choice for the commercial space industry – is dependent on a policy and regulatory environment that facilitates innovation," Drees said in her prepared remarks. "The United States faces increasing global competition in this sector, particularly from China, and must continue to thoughtfully update its policies and regulations to ensure American industry is able to lead. This is not a theoretical proposition – China’s space station already competes with the ISS in LEO and NASA Administrator Bill Nelson has stated that he believes China could beat the United States to the Moon this decade."

Drees called for a long-term extension of the FAA commercial spaceflight regulatory learning period beyond the current expiration on September 30, 2023. Additionally, she said the Department of Commerce (DOC) should be made the sole federal entity responsible for mission authorization for new and novel commercial space activities, and that Congress should invest in modernizing America’s space launch infrastructure to ensure it is able to continue to support the growth of the domestic commercial space industry.

(Source: House Science and Space Committee. Images from Committee YouTube video)