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

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

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

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

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

8. Federal Aviation Administration 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. Federal Aviation Administration 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. Federal Aviation Administration 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. Federal Aviation Administration 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. Federal Aviation Administration 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. Federal Aviation Administration 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/Inte rpretations/data/interps/2014/Graham-OGC-NASA%20- %20(2014)%20Legal%20Interpretation.pdfhttp://www.faa.gov/about/office_org/headquarters_offices/agc/pol_adjudication/agc200/Inte rpretations/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/Inte rpretations/data/interps/2014/Graham-OGC-NASA%20- %20(2014)%20Legal%20Interpretation.pdfhttp://www.faa.gov/about/office_org/headquarters_offices/agc/pol_adjudication/agc200/Inte rpretations/data/interps/2014/Graham-OGC-NASA%20- %20(2014)%20Legal%20Interpretation.pdf

14. Federal Aviation Administration Liability Under federal law Under state law 14