The Regulatory Role of Federal Aviation

Administration
the Federal Aviation
Administration in Space
Transportation

With regards to financial

responsibility
Overview

• U.S. regulatory structure

• FAA’s authority and role
• Financial and liability issues

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Regulatory Structure

• Congress
• Executive Branch
– Federal Aviation Administration – space
transportation
– Federal Communications Commissions – space
communications
– National Oceanic and Atmospheric Administration –
remote sensing
• Judiciary

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AST Statutory Mission
ELV

Air Launch
Launch & Reentry Sites

RLV

Launch & Reentry Sea Launch Human Space Flight

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 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.

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 U.S. Spaceports

 Kodiak
Launch
Complex

Mid-Atlantic
California
Regional Spaceport
Spaceport 
¨
Mojave Airport Wallops
 ¨ Spaceport
Oklahoma Spaceport
¨ Edwards AFB Flight
America Facility

Vandenberg Cecil Field
AFB ¨ Spaceport
Key White Sands
¨ U.S. Federal Launch Site Missile Range * -Kennedy Space
¨* Center
 Non-Federal FAA-Licensed
-Cape Canaveral
Launch Site Air Force Station
* Proposed Non-Federal
Spaceport Florida
Launch Site

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 Types of Launch Sites
Oklahoma
Spaceport

ELV

California Spaceport
Sea Launch

Florida
Kodiak Launch Spaceport
Complex
Mid-Atlantic
Mojave Air and Space Port Regional Spaceport

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 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

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 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.

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 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.

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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

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 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.

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 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.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.pdf

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Liability

• Under federal law

• Under state law

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