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An applicant may choose to submit an application for policy review separately from its license application, or, as do most applicants, it may submit a complete license application. The FAA will allow separate submission of a request for a policy review because of the possibility that an applicant might be uncertain about policy issues surrounding its proposal, and might wish to allay concerns over reactions to any proposed launch. An applicant might then request only a policy review prior to undertaking the additional effort necessary to prepare a complete license application. Past experience indicates that the FAA accomplishes these reviews relatively quickly in comparison with a safety review.
Section 415.25, a new provision, describes the information an applicant must provide to obtain a policy approval. As described in the NPRM, the information required reflects current FAA information requests. The FAA requires this information in order to inform it and other agencies of what is being launched, by whom, for what purpose, and where a vehicle and its payload are going. The State Department, for example, may identify overflight issues regarding particular countries.
Accordingly, the FAA requires that an applicant supply sufficient information to describe a proposed launch vehicle and its mission. The information requested by paragraph 415.25(b) is required in the event there are any policy issues surrounding the launch vehicle itself. The FAA requires a brief description of the launch vehicle, including the propellants used and the vehicle's major systems, such as its structural, pneumatic, propulsion, electrical or avionics systems. Policy questions may arise, for example, over the use of nuclear power, or the Department of Defense may have concerns over the allocation of resources to a commercial launch if a sole source manufacturer is involved.
The information requested by paragraph 415.25(c)(2), that an applicant identify any foreign ownership interests of 10% or more means that an applicant must identify any foreign owner possessing a ten percent or greater interest in a license applicant. This provision is intended to provide the FAA and the Departments of State and Defense the identities of foreign interests involved in a licensed launch. The Departments of State and Defense have interests in foreign involvement in the U.S. launch industry, including, for example, issues surrounding technology transfer and national security. The FAA believes that a ten percent ownership interest is sufficiently high for a foreign owner to be able to influence a prospective licensee. The FAA is aware that a publicly traded corporation will not always know the identity of each of its smaller shareholders. However, such an applicant should be aware of any shareholders possessing that significant an interest in the corporation. Reporting requirements of the Securities and Exchange Commission and the Department of Defense are often triggered by an ownership interest of ten percent or even less, and the FAA believes that this constitutes a reasonable threshold.
Through the comment process, Kistler Aerospace Corporation and Lockheed Martin Corporation requested that the FAA not require an applicant to identify its foreign ownership interests. Kistler at 10; Lockheed Martin at 7. Kistler recommended that the FAA require, instead, a statement from the applicant that it is in compliance with all federal requirements governing foreign ownership in certain sensitive industries under 50 U.S.C. §§ 1701 et seq. and 31 CFR Part 800. Kistler notes that the Treasury Department examines and passes upon foreign involvement in sensitive industries such as the launch industry. Thus, according to Kistler, the FAA’s information requirements concerning foreign ownership would be duplicative. Lockheed Martin maintains that the FAA offers an insufficient explanation regarding the purposes of obtaining the information.
The statutory and regulatory provisions upon which Kistler relies for its argument do address certain elements of foreign ownership, but address a more narrow area of concern than identified in the Act. The provisions of 50 U.S.
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Commercial Space Transportation Licensing Regulations(26)
