NewSpace Tipping the Balance of Domestic Liability Regimes: A U.S. Perspective Nathan A. Johnson J.D., George Washington University Law School 2014 LL.M., University of Nebraska College of Law 2015 (expected)

NewSpace Affect on Space Development Nathan A. Johnson1 Combined 2014 GSO and NGSO Historical Launches and Lunch Forecast (“2014 Commercial Space Transportation Forecasts,” FAA May 2014) “an emerging new segment of space launch demand” – FUTRON white paper “Market Characterization: Launch of Very-Small and Nano Sized Payloads Enabled by New Launch Vehicles” IAC-10.E6.3.9

National Risk for Space Activities Outer Space Treaty, Art. VI -“international responsibility” -“authorization and continuing supervision” Liability Convention -Art. II “absolute liability” -Art. III: fault based Nathan A. Johnson2 Question: Does Increased NewSpace Activity Expose Governments To More Risk?

Domestic Liability Regime: United States Nathan A. Johnson3 Launch & Reentry -Who needs a license? US citizen; or Launching from the US -What does a license require? Inspection Payload Review Monitoring Financial Responsibility

Balance of Risk: Private v. Public Financial Responsibility = Risk Sharing Tier 1: Insurance (or other demonstration) To cover the MPL to Third-Parties, as determined by the FAA Not to exceed $500 Million (+ $100 Million for Government) Tier 2: Government Appropriation, aka Indemnification If claims exceed Tier 1, Congress will seek to appropriate funds Up to an additional approximately $2.8 Billion (in 2015) Nathan A. Johnson4 Should Indemnification Be Allowed to Expire? *SpaceX

Government Jurisdiction over Space Activities - Direct Authorization FAA – Launch & Reentry FCC – Spectrum NOAA – Remote Sensing -Indirect Authorization (Payload Review) NASA Department of Defense Department of State Nathan A. Johnson5

Case Study: Satellite Internet Constellations Nathan A. Johnson6

Case Study: Bigelow Lunar Habitat Nathan A. Johnson7 *Bigelow Aerospace

Concerns from Insurance Market New Launch Vehicles Human Spaceflight Nathan A. Johnson8

Conclusion Private Companies still investing, developing, and seeking regulatory certainty US Government has enough flexibility to support or intervene where they deem risk Nathan A. Johnson9

Questions, Criticisms, Contributions: Nathan A. Johnson