    Commercial Space Launches: FAA Needs Continued Planning and
    Monitoring to Oversee the Safety of the Emerging Space Tourism
    Industry (20-OCT-06, GAO-07-16).

    In 2004, the successful launches of SpaceShipOne raised the
    possibility of an emerging U.S. commercial space tourism industry
    that would make human space travel available to the public. The
    Federal Aviation Administration (FAA), which has responsibility
    for safety and industry promotion, licenses operations of
    commercial space launches and launch sites. To allow the industry
    to grow, Congress prohibited FAA from regulating crew and
    passenger safety before 2012, except in response to high-risk
    events. GAO evaluated FAA's (1) safety oversight of commercial
    space launches, (2) response to emerging issues, and (3)
    challenges in regulating and promoting space tourism and
    responding to competitive issues affecting the industry. GAO
    reviewed FAA's applicable safety oversight processes and
    interviewed federal and industry officials.
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-07-16
        ACCNO:   A62445
      TITLE:     Commercial Space Launches: FAA Needs Continued Planning
    and Monitoring to Oversee the Safety of the Emerging Space
    Tourism Industry
         DATE:   10/20/2006
      SUBJECT:   Aerospace industry
    	     Federal regulations
    	     Industrial safety
    	     Internal controls
    	     Program evaluation
    	     Program management
    	     Safety regulation
    	     Safety standards
    	     Strategic planning
    	     Transportation safety
    	     Civilian space operations
    	     Government agency oversight
    	     Space shuttles
    	     Tourism

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    GAO-07-16

    www.gao.gov/cgi-bin/getrpt?GAO-07-16.

    To view the full product, including the scope

    and methodology, click on the link above.

    For more information, contact Gerald L. Dillingham at (202) 512-2834 or
    dillinghamg@gao.gov.

    Highlights of GAO-07-16, a report to the Ranking Democratic Member,
    Committee on Transportation and Infrastructure, House of Representatives

    October 2006

    COMMERCIAL SPACE LAUNCHES

    FAA Needs Continued Planning and Monitoring to Oversee the Safety of the
    Emerging Space Tourism Industry

    In 2004, the successful launches of SpaceShipOne raised the possibility of
    an emerging U.S. commercial space tourism industry that would make human
    space travel available to the public. The Federal Aviation Administration
    (FAA), which has responsibility for safety and industry promotion,
    licenses operations of commercial space launches and launch sites. To
    allow the industry to grow, Congress prohibited FAA from regulating crew
    and passenger safety before 2012, except in response to high-risk events.
    GAO evaluated FAA's (1) safety oversight of commercial space launches, (2)
    response to emerging issues, and (3) challenges in regulating and
    promoting space tourism and responding to competitive issues affecting the
    industry. GAO reviewed FAA's applicable safety oversight processes and
    interviewed federal and industry officials.

    What GAO Recommends

    If DOT's commissioned report on dual safety and promotion roles does not
    fully address the potential for a conflict of interest, GAO suggests that
    Congress revisit FAA's promotional role and decide whether it should be
    eliminated. GAO recommends that FAA assess its future safety oversight
    resource needs and identify the circumstances that would trigger passenger
    safety regulation before 2012. Relevant federal agencies reviewed the
    draft and DOT agreed withtherecommendations.

    Several measures indicate that FAA has provided a reasonable level of
    safety oversight for commercial launches. For example, none of the 179
    commercial launches that FAA licensed over the past 17 years resulted in
    fatalities, serious injuries, or significant property damage. However, FAA
    shared safety oversight with the Department of Defense (DOD) for most of
    these launches because they took place at federal launch sites operated by
    DOD. In addition, FAA's licensing activities incorporate a system safety
    process, which GAO recognizes as effective in identifying and mitigating
    risks. GAO's analysis of FAA records indicates that the agency is
    appropriately applying management controls in its licensing activities,
    thereby helping to ensure that the licensees meet FAA's safety
    requirements.

    In response to emerging issues in the commercial space launch industry,
    such as the potential development of space tourism, FAA has developed
    safety regulations and training for agency employees. The industry has
    raised concerns about the costs of complying with regulations and about
    the flexibility of the regulations to accommodate launch differences.
    However, FAA believes it has minimized compliance costs by basing its
    regulations on common safety standards and has allowed for flexibility by
    taking a case-by-case approach to licensing and by providing waivers in
    certain circumstances.

    FAA faces several challenges and competitive issues in regulating and
    promoting space tourism. For example, FAA expects to need more experienced
    staff for safety oversight as new technologies for space tourism evolve,
    but has not estimated its future resource needs. Other challenges for FAA
    include determining the specific circumstances under which it would
    regulate space flight crew and passenger safety before 2012 and balancing
    its responsibilities for safety and promotion to avoid conflicts.
    Recognizing the potential conflict in the oversight of commercial space
    launches, Congress required the Department of Transportation (DOT) to
    commission a report by December 2008 on several issues, including whether
    the promotion of human space flight should be separate from the regulation
    of such activity. In addition, U.S. commercial space launch industry
    representatives said that they face competitive issues concerning high
    launch costs and export controls that can affect their ability to sell
    services overseas. The federal government has provided support to the
    industry to help lower launch costs.
    *** End of document. ***