[Federal Register Volume 77, Number 163 (Wednesday, August 22, 2012)]
[Rules and Regulations]
[Pages 50584-50589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-20671]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 400

[Docket No.: FAA-2012-0318; Amdt. No. 400-4]
RIN 2120-AJ84


Voluntary Licensing of Amateur Rocket Operations

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Direct final rule; request for comments.

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SUMMARY: The FAA is amending the scope of its regulations to allow 
launch operators that conduct certain amateur rocket launches an 
opportunity to voluntarily apply for a commercial space transportation 
license or experimental permit.

DATES: Effective October 9, 2012.
    Submit comments on or before September 21, 2012. If adverse comment 
is received, the FAA will publish a timely withdrawal in the Federal 
Register.

ADDRESSES: You may send comments identified by docket number FAA-2012-
0318 using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your 
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S. 
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room 
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket 
Operations in Room W12-140 of the West Building Ground Floor at 1200 
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., 
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at 202-493-2251.
    Privacy: The FAA will post all comments it receives, without 
change, to http://www.regulations.gov, including any personal 
information the commenter provides. Using the search function of the 
docket Web site, anyone can find and read the electronic form of all 
comments received into any FAA docket, including the name of the 
individual sending the comment (or signing the comment for an 
association, business, labor union, etc.). DOT's complete Privacy Act 
Statement can be found in the Federal Register published on April 11, 
2000 (65 FR 19477-19478), as well as at http://DocketsInfo.dot.gov.
    Docket: Background documents or comments received may be read at 
http://www.regulations.gov at any time. Follow the online instructions 
for accessing the docket or Docket Operations in Room W12-140 of the 
West Building Ground Floor at 1200 New Jersey Avenue SE., Washington, 
DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal 
holidays.

FOR FURTHER INFORMATION CONTACT: For technical questions, contact 
Shirley McBride, Senior Transportation Industry Analyst, Regulations 
and Analysis Division, AST-300, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591; telephone (202) 267-
7470; facsimile (202) 267-5463; email [email protected].
    For legal questions, contact Laura Montgomery, Senior Attorney for 
Commercial Space Transportation, Office of the Chief Counsel, 
Regulations Division, AGC-200, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591; telephone (202) 267-
3150; facsimile (202) 267-7971, email [email protected].

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking

    The FAA's authority to issue rules on commercial space 
transportation safety is found in Title 49 of the United States Codes, 
section 322(a), which authorizes the Secretary of Transportation to 
carry out Subtitle V, Chapter 509, 51 U.S.C. 50901-50923, popularly 
referred to as the Commercial Space Launch Act or the CSLA. The CSLA 
authorizes the Department of Transportation (DOT) and thus the FAA, 
through delegations, to oversee, license, and regulate commercial 
launch and reentry activities, and the operation of launch and reentry 
sites as carried out by U.S. citizens or within the United States. 51 
U.S.C. 50904, 50905. The CSLA directs the FAA to exercise this 
responsibility consistent with public health and safety, safety of 
property, and the national security and foreign policy interests of the 
United States. 51 U.S.C. 50905. The FAA is also responsible for 
encouraging, facilitating, and promoting commercial space launches by 
the private sector. 51 U.S.C. 50903.

Direct Final Rule Procedure

    A direct final rule is a quicker way to issue rules that are not 
controversial. It is based on the Administrative Procedure Act's good 
cause exception to notice and comment procedures. 5 U.S.C. 553. We use 
this exception where we have found the public comment procedures to be 
unnecessary because we do not expect to receive adverse comment. It 
involves publishing a rule in the Federal Register with a statement 
that, unless we receive an adverse comment on the rule (or a notice of 
intent to file an adverse comment) within the comment period, the rule 
will become effective on a specified date. Normally, the effective date 
of a direct final rule is at least 30 calendar days after the end of 
the comment period.

Adverse Comment

    An adverse comment explains why a rule would be inappropriate, or 
would be ineffective or unacceptable without a change. It may challenge 
the rule's underlying premise or approach. In determining whether an 
adverse comment is significant enough to end a rulemaking, we consider 
whether the comment raises an issue that would warrant a substantive 
response in a notice of proposed rulemaking (NPRM).
    If we do not receive an adverse comment (or notice of intent to 
file an adverse comment), we publish a confirmation document in the 
Federal Register, generally within 30 calendar days after the comment 
period closes.

[[Page 50585]]

The confirmation document tells the public the effective date of the 
direct final rule.
    If we do receive an adverse comment (or notice of intent to file an 
adverse comment), we publish a Notice of Withdrawal in the Federal 
Register before the effective date of the direct final rule. The 
document may withdraw the direct final rule in whole or in part. We may 
incorporate the commenter's recommendation into another direct final 
rule or we may publish an NPRM.

The Direct Final Rule

    The FAA anticipates that this regulation will not result in adverse 
or negative comment since its application is strictly voluntary. 
Therefore, the agency is issuing it as a direct final rule. This rule 
allows an operator of a Class 3 \1\ amateur rocket \2\ to voluntarily 
apply for a license or experimental permit under chapter III. Because 
these applications are purely voluntary, there should be no adverse 
effects of this rule. Operators of Class 3 amateur rockets who do not 
wish to apply for a license or permit need not do so. Such operators 
would continue to operate as they do now under part 101.
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    \1\ Class 3 as defined by Sec.  101.22.
    \2\ Amateur rocket as defined by Sec.  1.1.
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Comments Invited

    The Regulatory Policies and Procedures of the Department of 
Transportation (DOT) (44 FR 1134; February 26, 1979) provide that to 
the maximum extent possible, operating administrations for the DOT 
should provide an opportunity for public comment on regulations issued 
without prior notice. Accordingly, the FAA invites interested persons 
to participate in this rulemaking by submitting written comments, data, 
or views. The agency also invites comments relating to the economic, 
environmental, energy, or federalism impacts that might result from 
adopting this final rule. The most helpful comments reference a 
specific portion of the document, explain the reason for any 
recommended change, and include supporting data. To ensure the docket 
does not contain duplicate comments, please send only one copy of 
written comments, or if filing comments electronically, please submit 
your comments only one time.
    The FAA will file all comments we receive in the docket, as well as 
a report summarizing each substantive public contact with FAA personnel 
concerning this rulemaking. Before acting on this direct final rule, 
the FAA will consider all comments received on or before the closing 
date for comments. The agency will consider comments filed after the 
comment period has closed if it is possible to do so without incurring 
expense or delay. The FAA may change this direct final rule in light of 
the comments we receive.

Proprietary or Confidential Business Information

    Do not file in the docket information that you consider to be 
proprietary or confidential business information. Send or deliver this 
information directly to the person identified in the FOR FURTHER 
INFORMATION CONTACT section of this document. Mark the information that 
is considered proprietary or confidential. If the information is on a 
disk or CD ROM, mark the outside of the disk or CD ROM and also 
identify electronically within the disk or CD ROM the specific 
information that is proprietary or confidential.
    Under 14 CFR 11.35(b), when the FAA is aware of proprietary 
information filed with a comment, the agency does not place it in the 
docket. The FAA holds it in a separate file to which the public does 
not have access, and the agency places a note in the docket that it has 
received it. If the FAA receives a request to examine or copy this 
information, the FAA treats it as any other request under the Freedom 
of Information Act, 5 U.S.C. 552. The FAA processes such a request 
under the DOT procedures found in 49 CFR part 7.

Availability of Rulemaking Documents

    You can get an electronic copy using the Internet by:
    (1) Searching the Federal eRulemaking portal at http://www.regulations.gov;
    (2) Visiting the FAA's Regulations and Policies web page at http://www.faa.gov/regulations_policies/; or
    (3) Accessing the Government Printing Office's web page at http://www.gpo.gov/fdsys/.
    You can also get a copy by sending a request to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW., Washington, DC 20591, or by calling (202) 267-9680. Make 
sure to identify the docket and amendment numbers of this rulemaking.

Background

    Currently, the FAA's commercial space regulations specify that the 
requirements in chapter III do not apply to amateur rockets activities. 
This direct final rule amends Sec.  400.2 of chapter III to allow 
operators of Class 3 amateur rockets to voluntarily apply to the FAA 
for a license or experimental permit.
    Chapter III contains the requirements that apply to commercial 
space transportation activities conducted in the United States or by a 
United States citizen. Section 400.2 (Scope) states that the 
requirements of chapter III do not apply to amateur rocket activities. 
Section 1.1 of chapter I defines an amateur rocket as an unmanned 
rocket propelled by a motor or motors having a combined total impulse 
of 889,600 Newton-seconds (200,000 pound-seconds) or less; and cannot 
reach an altitude greater than 150 kilometers (93.2 statute miles) 
above the earth's surface.
    In 2008, the FAA amended its regulations governing amateur rocket 
activities to create three separate classes of amateur rockets.\3\
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    \3\ See 14 CFR 101.22.
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     Class 1 Model Rocket--Uses no more than 125 grams (4.4 
ounces) of propellant; uses a slow-burning propellant; is made of 
paper, wood, or breakable plastic; contains no substantial metal parts; 
and weighs no more than 1,500 grams (53 ounces), including the 
propellant.
     Class 2 High-Power Rocket--An amateur rocket other than a 
model rocket that is propelled by a motor or motors having a combined 
total impulse of 40,960 Newton-seconds (9,208 pound-seconds) or less.
     Class 3 Advanced High-Power Rocket--An amateur rocket 
other than a model rocket or high-powered rocket.
    On May 26, 2011, The National Aeronautics and Space Administration 
(NASA) issued Release 11-170,\4\ which sought proposals for services 
from commercial suborbital flight providers and others to support the 
agency's Flight Opportunities Program. This program combines NASA's 
Facilitated Access to the Space Environment for Technology and 
Commercial Reusable Suborbital Research efforts.
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    \4\ NASA Calls for Commercial Suborbital Flight Services 
Proposals, Release 11-170.
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    On August 9, 2011, NASA issued Release 11-258 \5\ in which it 
selected seven companies to support its Flight Opportunities Program 
through launches to near space. In order for the financial 
responsibility requirements of the CSLA \6\ to apply, NASA has required 
these operators to be licensed by the FAA. The suborbital launches 
under the NASA program typically involve smaller launch vehicles, some 
of whose launches would satisfy the amateur rocket definition, and thus 
would fall

[[Page 50586]]

outside the scope of the FAA's space transportation regulations in 
chapter III.
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    \5\ NASA Selects Seven Firms To Provide Near-Space Flight 
Services, Release 11-258.
    \6\ 51 U.S.C. 50914--Liability Insurance and Financial 
Responsibility requirements.
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    At least one amateur rocket operator has sought to obtain an FAA 
license. The operator said it will not change its operational profile 
to otherwise fall within the authority of chapter III regulations. 
Without a rulemaking, the FAA may not entertain applications for the 
licensing or permitting of amateur rocket activities.\7\
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    \7\ Allentown Mack Sales & Serv. v. NLRB, 522 U.S. 359, 373-74 
(1998); United States v. Nixon, 418 U.S. 683, 695-96 (1974); Nat'l 
Family Planning & Reprod. Health Ass'n v. Sullivan, 979 F.2d 227, 
235-41 (D.C. Cir. 1992).
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    The CSLA provides that the United States should encourage private 
sector launches, reentries, and associated services and, only to the 
extent necessary, regulate those launches to ensure compliance with 
international obligations of the United States and to protect the 
public health and safety, safety of property, and national security and 
foreign policy interests of the United States.\8\ Thus, because a 
license is necessary for a launch operator to be eligible for the NASA 
program, it is appropriate to issue this direct final rule to allow 
operators of specified amateur rockets to voluntarily submit an 
application for a chapter III license or experimental permit.\9\
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    \8\ 51 U.S.C. 50901(a)(7), 50903(b).
    \9\ Although NASA does not require a permit, the FAA sees no 
need to distinguish between the two authorizations.
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    This direct final rule amends Sec.  400.2 to allow operators of 
Class 3 amateur rockets to voluntarily apply to the FAA for a license 
or permit.

New Requirements

    To accommodate NASA's interest in funding only licensed launches, 
the FAA will allow launches of sufficient size to voluntarily apply for 
an FAA license and, therefore, fall under the financial responsibility 
requirements of the CSLA. The changes do not apply to launches 
involving a Class 1 or Class 2 amateur rocket. Instead, they only apply 
to launch activities related to a Class 3 amateur rocket. The FAA will 
not solicit such applications, because solicitation would call into 
question whether the application was, in fact, voluntary.
    Also, this rule only permits voluntary applications for a license 
from entities that are not part of the U.S. Government. The CSLA does 
not apply to activities the U.S. Government conducts for the 
government, which means the FAA does not have the authority to consider 
even voluntary applications for a license from other Federal 
agencies.\10\
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    \10\ 51 U.S.C. 50919(g).
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    Further, a prospective applicant must keep in mind that once it 
applies for and accepts an FAA license or permit, part 101 will not 
apply and the requirements of chapter III will apply to and govern its 
operations. These requirements govern not only the operational safety 
requirements of chapter III, but also requirements applicable to 
financial responsibility, the signing of reciprocal waivers of claims, 
environmental impacts, and civil penalties.

Paperwork Reduction Act

    Information collection requirements in the amendment to the 
Commercial Space Transportation Licensing Regulations have been 
previously approved by the Office of Management and Budget (OMB) under 
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507(d)), and assigned OMB Control Number 2120-0608. This final rule 
allows launch operators that conduct certain amateur rockets launches 
an opportunity to voluntarily apply for a commercial space 
transportation license or experimental permit.

Regulatory Evaluation, Regulatory Flexibility Determination, 
International Trade Impact Assessment, and Unfunded Mandates Assessment

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 and Executive Order 13563 
directs that each Federal agency shall propose or adopt a regulation 
only upon a reasoned determination that the benefits of the intended 
regulation justify its costs. Second, the Regulatory Flexibility Act of 
1980 (Pub. L. 96-354) requires agencies to analyze the economic impact 
of regulatory changes on small entities. Third, the Trade Agreements 
Act (Pub. L. 96-39) prohibits agencies from setting standards that 
create unnecessary obstacles to the foreign commerce of the United 
States. In developing U.S. standards, this Trade Act requires agencies 
to consider international standards and, where appropriate, that they 
be the basis of U.S. standards. Fourth, the Unfunded Mandates Reform 
Act of 1995 (Pub. L. 104-4) requires agencies to prepare a written 
assessment of the costs, benefits, and other effects of proposed or 
final rules that include a Federal mandate likely to result in the 
expenditure by State, local, or tribal governments, in the aggregate, 
or by the private sector, of $100 million or more annually (adjusted 
for inflation with base year of 1995). This portion of the preamble 
summarizes the FAA's analysis of the economic impacts of this direct 
final rule. We suggest readers seeking greater detail read the full 
regulatory evaluation, a copy of which we have placed in the docket for 
this rulemaking.
    In conducting these analyses, FAA has determined that this final 
rule: (1) Has benefits that justify its costs, (2) is not an 
economically ``significant regulatory action'' as defined in section 
3(f) of Executive Order 12866, (3) is not ``significant'' as defined in 
DOT's Regulatory Policies and Procedures; (4) will not have a 
significant economic impact on a substantial number of small entities; 
(5) will not create unnecessary obstacles to the foreign commerce of 
the United States; and (6) will not impose an unfunded mandate on 
state, local, or tribal governments, or on the private sector by 
exceeding the threshold identified above. These analyses are summarized 
below.

Total Benefits and Costs

    The FAA does not require licensing of amateur rocket operators, who 
may continue to operate as before, without incurring the cost of 
obtaining a license. The FAA notes that an operator's customers, 
including other agencies such as NASA, may require a license for an 
amateur rocket operator who wishes to provide launch services or to 
participate in programs, such as NASA's Flight Opportunities Program. 
Since this license is not an FAA requirement, the FAA attributes the 
costs of operator compliance to the customer, not to this rule. 
Whenever a license or permit is issued, the FAA will incur a cost to 
produce the authorization. Operators who choose to obtain a license 
under this rule will also incur costs although we do not attribute 
these costs to the rule, because they are voluntary.
    The estimated cost associated with issuing licenses and 
experimental permits under this rule is $1.8 million ($1.5 million 
present value using a 7 percent discount rate and $ 1.7 million present 
value using a 3 percent discount rate) over 5 years for the cost to the 
government. Operator benefits are expected to equal or exceed their 
costs. The FAA is not able to quantify other societal benefits of this 
rule. To the extent the licensing requirements provide a societal 
benefit, those benefits, including any reduction in risk, may attend 
this rule. Those benefits are not quantifiable for launch vehicles of 
this size, but the benefits are present.

Who is potentially affected by this rule?

     Launch operators who would like to launch amateur rocket 
vehicles under a license or permit
     Customers, including NASA
     FAA

[[Page 50587]]

Assumptions

     All monetary values are expressed in 2011 dollars.
     The time horizon for the analysis is 5 years because this 
time period captures all of the relevant costs.
     Present value costs are estimated at 7 percent and 3 
percent.
     Hourly burdened government rate is $51.72.
     Ten operator licenses for amateur rocket launches will be 
issued over the first 5 years.\11\
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    \11\ NASA's Flight Opportunities Program (FOP) has awarded 
contracts to seven operators. We find it reasonable to assume that 
in the first 2 years after the rule publishes, three amateur rocket 
licenses will be granted. Two more amateur rocket operators not 
involved with the FOP have inquired into the possibility of 
obtaining voluntary licenses for research and development and 
demonstration launches. It is reasonable to estimate that the FAA 
could issue up to 10 amateur rocket licenses in the first 5 years.
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     Operator licenses for reusable launch vehicles are valid 
for 2 years.
     Operators will begin license renewal process for each 
license the second year of the license.
[GRAPHIC] [TIFF OMITTED] TR22AU12.027

     Operators will renew with amendments to include additional 
configurations.
     Cost of these renewals will be 70 percent of the cost of 
the original license because configurations will be expanded beyond 
original license.
     There will be multiple launches per year.
     We assume amateur rocket operators who choose to obtain a 
license will decide to launch from a licensed launch site which will 
already have a completed environmental review or which will have a 
government grant for preparing an environmental review. This would 
result in minimal costs.

Benefits

    Because the rule is voluntary, the FAA does not require amateur 
operators to obtain a license. Amateur rocket operators will choose to 
obtain an FAA license in order to launch rockets only if their expected 
benefits exceed their costs. An operator will seek a license only if 
the costs of obtaining a license are worth it. Any benefit to the 
operator associated with having a license will be realized only after 
an operator has incurred the cost of obtaining a license. This rule 
encourages rocket launches, which is consistent with the FAA mission. 
The FAA is not able to quantify other societal benefits of this rule, 
other than to note the expected benefits exceed the expected costs.

Costs Associated With Licenses

    Although the FAA does not attribute such costs to this rule, the 
FAA notes that amateur rocket operators would incur costs to submit the 
data and analyses to the FAA for a license or experimental permit and 
for the cost of third party liability insurance. Assuming 10 licenses 
are issued in the first 5 years, operators will voluntarily expend a 
total of $2 million ($1.66 million present value using a 7 percent 
discount rate and $ 1.85 million present value using a 3 percent 
discount rate) over 5 years for licenses. These costs are presented in 
the table below:
[GRAPHIC] [TIFF OMITTED] TR22AU12.028

    The FAA would incur the cost of reviewing and processing the 
materials that the operators submit for a license or experimental 
permit. These costs are presented in the table below:

[[Page 50588]]

[GRAPHIC] [TIFF OMITTED] TR22AU12.029

Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) 
establishes ``as a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objectives of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of the businesses, organizations, and governmental jurisdictions 
subject to regulation. To achieve this principle, agencies are required 
to solicit and consider flexible regulatory proposals and to explain 
the rationale for their actions to assure that such proposals are given 
serious consideration.'' The RFA covers a wide-range of small entities, 
including small businesses, not-for-profit organizations, and small 
governmental jurisdictions. Agencies must perform a review to determine 
whether a rule will have a significant economic impact on a substantial 
number of small entities. If the agency determines that it will, the 
agency must prepare a regulatory flexibility analysis as described in 
the RFA.
    However, if an agency determines that a rule is not expected to 
have a significant economic impact on a substantial number of small 
entities, section 605(b) of the RFA provides that the head of the 
agency may so certify and a regulatory flexibility analysis is not 
required. The certification must include a statement providing the 
factual basis for this determination, and the reasoning should be 
clear.
    The FAA believes that this final rule will not have a significant 
impact on a substantial number of entities for the following reasons: 
The rule is voluntary and does not create costs on operators. Also, 
operators of amateur rockets would not willingly obtain licenses or 
experimental permits if the costs were to exceed the expected benefits.
    Therefore, as the Acting FAA Administrator, I certify that this 
rule will not have a significant economic impact on a substantial 
number of small entities.

International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the 
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal 
agencies from establishing standards or engaging in related activities 
that create unnecessary obstacles to the foreign commerce of the United 
States. Pursuant to these Acts, the establishment of standards is not 
considered an unnecessary obstacle to the foreign commerce of the 
United States, so long as the standard has a legitimate domestic 
objective, such as the protection of safety, and does not operate in a 
manner that excludes imports that meet this objective. The statute also 
requires consideration of international standards and, where 
appropriate, that they be the basis for U.S. standards. The FAA has 
assessed the potential effect of this final rule and determined that it 
will have only a domestic impact and therefore will not create 
unnecessary obstacles to the foreign commerce of the United States.

Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement 
assessing the effects of any Federal mandate in a proposed or final 
agency rule that may result in an expenditure of $100 million or more 
(in 1995 dollars) in any one year by State, local, and tribal 
governments, in the aggregate, or by the private sector; such a mandate 
is deemed to be a ``significant regulatory action.'' The FAA currently 
uses an inflation-adjusted value of $143.1 million in lieu of $100 
million. This direct final rule does not contain such a mandate; 
therefore, the requirements of Title II of the Act do not apply.

Executive Order 13132, Federalism

    The FAA has analyzed this final rule under the principles and 
criteria of Executive Order 13132, Federalism. We determined that this 
action will not have a substantial direct effect on the States, or the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. Therefore, we determined that this final rule does not have 
federalism implications.

Environmental Analysis

    FAA Order 1050.1E identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act in the absence of extraordinary circumstances. The FAA has 
determined this rulemaking action qualifies for the categorical 
exclusion identified in Chapter 3, paragraph 312d, governing 
rulemakings such as this, and involves no extraordinary circumstances.

Regulations That Significantly Affect Energy Supply, Distribution, or 
Use

    The FAA has analyzed this final rule under Executive Order 13211, 
Actions Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use, 66 FR 28355 (May 18, 2001). We have determined 
that it is not a ``significant energy action'' under the executive 
order because it is not a ``significant regulatory action'' under 
Executive Order 12866, and it is not likely to have a significant 
adverse effect on the supply, distribution, or use of energy.

List of Subjects in 14 CFR Part 400

    Commercial space transportation, Licensing, Reporting and 
recordkeeping requirements.

[[Page 50589]]

The Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration amends chapter III of Title 14, Code of Federal 
Regulations as follows:

PART 400--BASIS AND SCOPE

0
1. The authority citation for part 400 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.


0
2. Revise Sec.  400.2 to read as follows:


Sec.  400.2  Scope.

    These regulations set forth the procedures and requirements 
applicable to the authorization and supervision under 51 U.S.C. 
Subtitle V, chapter 509, of commercial space transportation activities 
conducted in the United States or by a U.S. citizen. The regulations in 
this chapter do not apply to--
    (a) Space activities carried out by the United States Government on 
behalf of the United States Government; or
    (b) The launch of an amateur rocket as defined in Sec.  1.1 of 
chapter I unless--
    (1) The rocket is a Class 3 advanced high-power rocket as defined 
in Sec.  101.22 of chapter I; and
    (2) The operator of the Class 3 advanced high-power rocket 
voluntarily submits an application for a license or a permit.

    Issued in Washington, DC, on July 31, 2012.
Michael P. Huerta,
Acting Administrator.
[FR Doc. 2012-20671 Filed 8-21-12; 8:45 am]
BILLING CODE 4910-13-P