[Federal Register Volume 59, Number 197 (Thursday, October 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25314]


[[Page Unknown]]

[Federal Register: October 13, 1994]


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DEPARTMENT OF TRANSPORTATION
Office of Commercial Space Transportation
[Docket 49815 (Licensing Commercial Space Launch Activities); and 
Docket No. 43098 (Financial Responsibility Requirements); Notice 94-17]
RIN 2105-AB85; 2105-AA26

 

Public Meeting; Notice

AGENCY: Office of the Secretary, Office of Commercial Space 
Transportation, DOT.

ACTION: Notice of public meeting.

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SUMMARY: The Department of Transportation's (DOT) Office of Commercial 
Space Transportation (OCST) is holding a public meeting to obtain 
industry input to assist it with rulemaking activities currently under 
consideration. OCST seeks information that will assist it in developing 
a notice of proposed rulemaking (NPRM) addressing specific requirements 
for launch and launch site operator license applications submitted to 
OCST. OCST seeks to standardize its review of license applications 
while at the same time allowing prospective licensees design and 
operational flexibility for their proposals. OCST also plans to develop 
a second NPRM addressing implementation of financial responsibility 
requirements and allocation of risks associated with the conduct of 
licensed activities. Accordingly, OCST seeks views concerning the range 
of activities that may be covered by these requirements and the scope 
of the U.S. Government's payment of third-party claims that exceed the 
amount of required liability insurance.

DATES: The meeting is scheduled to take place on October 27 and 28, 
1994, from 9:30 a.m. to 5:00 p.m. each day, in Room 2230 of the 
Department of Transportation's Nassif Building, 400 Seventh Street SW., 
Washington, DC.

ADDRESSES: Written submissions may be provided to OCST in addition to 
or in place of oral remarks presented at the public meeting. We would 
appreciate receiving each submission in triplicate with an indication 
of the Docket Number (listed above) to which it refers. One submission 
may be used to address both the licensing and financial responsibility 
dockets. Submissions should be sent to Docket Clerk, Department of 
Transportation, 400 7th Street SW., Room 4107, Washington, DC 20590. 
Comments will be available for public inspection at this address from 
9:00 a.m. to 5:30 p.m., Monday through Friday. Written submissions 
should be provided by November 14, 1994.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Strine, Deputy Assistant 
Director for Program Affairs, OCST, (202) 366-2980.

SUPPLEMENTARY INFORMATION-

Background-

    The Commercial Space Launch Act of 1984, 49 U.S.C. 2601-2623, as 
recodified at 49 U.S.C. Subtitle IX--Commercial Space Transportation, 
ch. 701, Commercial Space Launch Activities, 49 U.S.C. 70101-70119 
(1994) (the Act), authorizes the Secretary of Transportation to oversee 
and regulate commercial launch activities and the commercial operation 
of launch sites carried out within the United States or by its 
citizens. The Act requires that this responsibility be exercised to 
protect the public health and safety, safety of property, and national 
security and foreign policy interests of the United States. The 
Secretary's responsibilities under the Act, including licensing 
commercial launches and the operation of launch sites, as well as the 
obligation to encourage, facilitate and promote establishment of a 
competitive United States commercial space transportation industry, are 
implemented by OCST. -
    OCST implements its licensing and regulatory authority through the 
Commercial Space Transportation Licensing Regulations (Regulations), 14 
C.F.R. Ch. III. At the time the Regulations were published in April 
1988, no commercial launches had yet taken place. In adopting its 
approach to licensing commercial launch activities, as reflected in the 
Regulations, OCST recognized the need to establish a regulatory 
environment responsive to the needs of an emerging industry while 
assuring the public that commercial launch activities would be 
conducted safely and responsibly. At that time, OCST indicated that it 
would ``continue to evaluate and, when necessary, re-shape its program 
in response to growth, innovation, and diversity in this critically 
important industry.'' 53 Fed. Reg. 11006. -
    Both OCST's experience in administering the Act and launch 
companies' experience in operating in a commercial environment subject 
to DOT's regulatory oversight have evolved with time. OCST now seeks to 
streamline its licensing process while continuing to ensure safety and 
preserving the flexibility necessary to address myriad launch 
technologies and associated issues. Accordingly, OCST contemplates 
issuing rules of general applicability to enhance industry certainty 
regarding what is required of an applicant in the licensing process and 
what is required of a licensee after a license has been issued.
 -Launch and Launch Site Operator Licensing Procedures
    Under the Act, a DOT license is required for any person to launch a 
launch vehicle or operate a launch site within the United States. In 
addition, a license is also required for a U.S. citizen to launch a 
launch vehicle or operate a launch site outside the United States. 
Foreign corporations, partnerships, joint ventures, associations or 
other entities controlled by U.S. citizens do not need licenses to 
conduct these activities from foreign territory unless the foreign 
nation involved has agreed that the United States shall exercise 
jurisdiction over the activity. In exercising this licensing authority 
under the Act, the Secretary must protect public health and safety, 
safety of property, and national security and foreign policy interests 
of the United States. -
    The Regulations issued in 1988 reflect OCST's approach to 
evaluating license applications on a case-by-case basis. To date, OCST 
has relied on these Regulations, and on guidelines it makes available 
upon applicant request, to advise prospective applicants of the 
information OCST requires to perform safety and mission reviews of a 
launch license application. Having obtained six years of experience in 
evaluating launch proposals and conducting safety research, OCST is now 
prepared to streamline the launch licensing process by standardizing 
requirements wherever possible without impeding innovation. In response 
to industry requests for greater certainty in the application process, 
and in order to achieve consistency, OCST proposes to codify certain 
specific information requirements in regulations. In doing so, the 
issues to be addressed include: (1) the scope of launch licenses; (2) 
risk management techniques that enable license applicants to 
demonstrate acceptable levels of safety; (3) application information 
requirements; (4) relationship to and consistency with Federal range 
requirements; and (5) reliance by license applicants on, among other 
things, industry standards. With respect to launch license application 
reviews, OCST is interested in obtaining views on at least the 
following:-
     What elements of a launch proposal must OCST evaluate to 
assure launch safety;-
     Which pre-launch or launch processing operations and 
procedures should OCST assess to assure launch safety;-
     What safety methodologies do launch operators currently 
utilize to assure safe launch operations, and what approaches are 
available to evaluate these methodologies;-
     How should OCST utilize the analyses of Federal ranges in 
its licensing review process;-
     What information must launch license applicants submit to 
other federal agencies, including federal ranges, that must also be 
submitted to OCST as part of the license application review? Can OCST 
utilize that information to avoid duplicative document preparation and 
submissions by license applicants; and-
     What should OCST require with respect to on orbit safety.-
    When the Regulations were published in 1988, OCST indicated that it 
would handle commercial launch site proposals on a case-by-case basis 
while safety studies and research were ongoing. Since 1988, the vast 
majority of licensing proposals submitted to OCST have been for 
commercial launches of launch vehicles from a Federal range. However, 
in light of the growing and intensified interest in operating 
commercial launch sites, OCST has determined that establishing 
certainty in the site operator licensing process through rules of 
general applicability is necessary to facilitate this burgeoning 
industry. With respect to OCST's approach to reviewing applications for 
a license to operate a commercial launch site, OCST seeks views 
concerning such matters as: (1) the scope of launch site operator 
licenses; (2) risk management techniques that enable license applicants 
to demonstrate acceptable levels of safety; (3) application information 
requirements; (4) reliance by license applicants on industry standards; 
and (5) reliance by license applicants on other Federal safety 
standards. With respect to site operator license applications, OCST is 
interested in obtaining views on at least the following:-
     How should OCST assess a proposed launch site with respect 
to geography, meteorology, proximity to population, risk to downrange 
population, and other characteristics associated with the physical 
site;-
     What process and standards should OCST utilize, including 
safety methodologies, to assess the capability of a launch site 
operator to manage safety; -
     What is the relationship between a site operator license 
and its associated safety reviews, and a launch license authorizing a 
launch from a commercial launch site and its associated safety 
reviews;-
     For launches conducted from a commercial launch site, how 
should responsibility for safety be allocated between the launch 
licensee and the site operator; and-
     Given that OCST must evaluate flight safety functions, 
such as flight termination or tracking, to assure the safety of launch 
operations, how should those functions be addressed by the licensing 
process when the launch will be conducted from a commercial launch 
site. -

Scope of Financial Responsibility Requirements-

    In 1988, Congress amended the Act to require that licensees obtain 
liability insurance or otherwise demonstrate financial responsibility 
up to a statutory limit of $500,000,000, in order to protect launch 
participants from third-party claims resulting from activities carried 
out under a license in connection with a particular launch. Licensees 
must also obtain liability insurance or otherwise demonstrate financial 
responsibility up to $100,000,000, to compensate the U.S. Government 
for damage or loss to its property resulting from those activities. 
Reciprocal waivers of claims are also required whereby each party 
involved in launch services agrees to be responsible for certain losses 
it may sustain and losses sustained by its own employees resulting from 
an activity carried out under the license. -
    The 1988 Amendments further provide that, to the extent provided in 
advance in an appropriation law or authorized by statute, the Secretary 
of Transportation shall provide for the payment by the U.S. Government 
of successful third-party claims against a licensee, contractor, 
subcontractor, or customer of the licensee, or a contractor or 
subcontractor of a customer, resulting from an activity carried out 
under a license, to the extent the total amount of claims arising out 
of any one launch exceeds the amount of third-party liability insurance 
required of the licensee, up to a total of $1.5 billion above that 
amount. The U.S. Government bears the risk of government property 
losses that exceed the level of insurance coverage required of the 
licensee. -OCST prescribes financial responsibility requirements for 
licensees on a case-by-case basis after analyzing the maximum probable 
third-party and government property losses associated with proposed 
licensed activities. Those requirements are imposed on licensees in 
license orders. Currently, license orders issued by OCST reflect 
insurance requirements for both launches and launch site operations 
associated with the conduct of those launches. Concerns have arisen 
over the extent to which pre-launch activities are intended to be 
covered by the financial responsibility requirements of the Act, and 
the Government payment of excess third-party claims provision. 
Clarification is needed to provide certainty to the industry so that it 
may manage risks appropriately.-
    The Act provides guidance on these issues. To the extent the Act 
provides for payment by the U.S. Government of successful third-party 
claims in excess of required insurance, it is only available for claims 
``resulting from an activity carried out under the license issued or 
transferred under [chapter 701] for death, bodily injury, or property 
damage or loss resulting from an activity carried out under the 
license.'' 49 U.S.C. 70113(a)(1)(emphasis added). Moreover, claims may 
be paid under this provision of the Act only to the extent the total 
amount of successful claims related to one launch exceeds the required 
amount of third-party liability insurance and does not exceed $1.5 
billion above that amount. 49 U.S.C. 70113(a)(1)(emphasis added). -
    Licenses are available to authorize the conduct of a launch, as 
defined in the Act, or the operation of a launch site. Because the U.S. 
Government payment of excess third-party claims provision is only 
available for claims resulting from an activity carried out under the 
license for damage or loss resulting from an activity carried out under 
a license, and because the Act defines launch as ``to place or try to 
place'' a launch vehicle and any payload in a suborbital trajectory, in 
Earth orbit in outer space or otherwise in outer space, 49 U.S.C. 
70102(3), one interpretation of this language is that, with respect to 
launches, it only extends to claims resulting from ignition and flight 
of a launch vehicle. In other words, it may not be available for claims 
resulting from preparatory activities conducted at the launch site. 
Alternatively, some preparatory activities may reasonably be considered 
integral to the launch itself or part of the launch process. OCST seeks 
industry views on what those activities are and why they may fall 
within the statutory definition of a ``launch.'' -
    OCST plans to adopt specific criteria for determining when an 
activity would be considered part of a launch for purposes of imposing 
financial responsibility requirements and to determine when U.S. 
Government payment of excess third-party claims may be available. OCST 
also seeks industry views on how the U.S. Government payment of excess 
third-party claims provision applies to licensed site operators, if at 
all. Diverse points of view exist regarding these issues, and OCST 
seeks information regarding the basis for each point of view as well as 
recommendations as to which should be adopted.-
    OCST recognizes that many other issues are associated with 
implementation of the financial responsibility and allocation of risk 
requirements of the Act. The issues presented in this Notice are 
limited in scope because their resolution will necessarily affect 
OCST's approach to licensing launch activities and site operators. At 
the meeting, OCST will welcome any other comments on financial 
responsibility matters, as time allows. -

Standards-

    In accordance with the Presidential Decision Directive, NSTC-4, 
outlining the National Space Transportation Policy issued August 5, 
1994, OCST would like to work with the U.S. commercial space sector to 
promote the establishment of technical standards for commercial space 
products and services. OCST solicits industry views on what safety 
standards should be developed to support this goal, and how they should 
be implemented.

Meeting Schedule-

    Because of time constraints and the need to ensure that each 
subject area is fully aired, OCST intends that one full meeting day be 
accorded to licensing issues and one-half day to issues concerning the 
scope of financial responsibility requirements. Licensing issues will 
be discussed on October 27, 1994. Financial responsibility issues will 
be addressed in the morning session on October 28, 1994. If licensing 
issues are exhausted before the time allotted on October 27th, the 
meeting will move directly to financial responsibility issues. -
    OCST looks forward to an informative and interactive discussion of 
the issues among the participants at the meeting, as opposed to a forum 
for the presentation of prepared statements. However, persons wishing 
to present prepared remarks at the meeting, whether in a personal or a 
representative capacity on behalf of an organization, will be given an 
opportunity to do so during the afternoon session on October 28, 1994, 
between 1:30 p.m. and 4:00 p.m., and may reserve between five and 15 
minutes to do so. In addition, OCST plans to reserve an hour at the end 
of each day to discuss technical standards and other issues of concern 
to participants that may not be part of the rulemaking activity. Any 
time remaining on October 28, 1994, may be used for further discussion 
of the issues related to rulemaking activities.-
    Those who are interested in presenting remarks at the meeting 
should notify OCST no later than October 17, 1994, to reserve up to 15 
minutes of time. If possible, OCST will notify interested persons if 
additional time is available. DOT officials chairing the meeting may 
take additional time to ask clarifying questions of the speaker. To 
reserve speaking time, please telephone Ms. Linda Strine (202) 366-
2980.

    Issued in Washington, DC, October 6, 1994.-
Frank C. Weaver, -
Director, Office of Commercial Space Transportation.
[FR Doc. 94-25314 Filed 10-12-94; 8:45 am]
BILLING CODE 4910-62-U