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On the basis of this record, the FAA proposed in the NPRM that a launch operator with a safe launch record should not be required to apply for a new license every two years. The FAA will continue to verify, through compliance monitoring, that a licensee is operating in accordance with the terms and conditions of its license. In this regard, the longer the license term, the more important the role compliance monitoring plays in enabling the FAA to provide safety oversight regarding how a licensee implements its procedures.
The FAA received comments regarding the duration of a launch operator license. Several launch operators supported the proposed increase from two to five years. Boeing at 1; Lockheed Martin at 7; Orbital Sciences at 6; Rotary Rocket Company at 4-5 (while emphasizing its need for a launch operator license for a reusable flight test program); Space Access at 6. Kistler Aerospace Corporation requested that the FAA consider issuing launch operator licenses of indefinite duration. Kistler at 4. Kistler maintains that the choice of five years is arbitrary and of little utility in regulating a licensee. Id. Kistler notes that the proposed regulations vest the FAA with continuing oversight powers, require a licensee to ensure the continuing accuracy of its application representations and allow the FAA to amend the terms and conditions of a license at any time. Id. Kistler claims that renewing a license every five years poses an unnecessary burden and creates an uncertainty that adversely affects a licensee’s ability to enter into contracts, attract capital and otherwise make long term plans. Id.
Although the FAA appreciates the issues raised by Kistler, the FAA will increase the duration of a launch operator license from two to five years as originally proposed rather than creating a license of indefinite duration. This is because an increase in duration from two to five years already place greater reliance on the FAA’s compliance monitoring program. A license renewal application has the benefit of compelling the FAA and a licensee to perform a comprehensive review of a licensee’s operations. Experience has shown that a renewal process ensures that oversight is performed.
Space Access raises a separate issue, namely the question of how the FAA will determine who is qualified for a launch operator license as opposed to a launch-specific license. Space Access asks what constitutes a safe launch record. To this, the FAA is able to respond with some guidance culled from its past practices. The FAA licensed the first launch of a Pegasus launch vehicle on a launch-specific basis. It is currently contemplating a launch-specific license for Sea Launch’s proposed first launch from the Pacific Ocean. Other examples of launch-specific licenses include the first launches of Lockheed Martin’s LMLV-1 and 2, EER’s Conestoga launch and AMROC’s hybrid launch vehicle launch. To date, the FAA has not considered a new launch operator one with a safe launch record. A new launch operator has no record.
Although a launch-specific license might be required for a new vehicle, an established operator may apply for a launch operator license after the first launch, but a newer entity may have a greater showing to make. A first launch may be safe without being successful. A first launch LMLV-1 failure that demonstrated that a safety system worked led to a launch operator license for Lockheed Martin. Historically, launch operators who received launch operator licenses had already demonstrated some level of capability in conducting launches, either by conducting launches for the government or with other launch vehicles.
The FAA policy of considering an applicant for a launch operator license after a safe launch conducted under a launch-specific license has, to date, applied to launches from federal launch ranges. This policy may not always be appropriate under other circumstances. The complexity of the proposed operations, whether a vehicle is reusable and the potential for endangering the public may also play a role in whether the FAA decides a launch operator license is appropriate for subsequent launches.
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Commercial Space Transportation Licensing Regulations(16)
