Commercial Space Transportation Licensing Regulations(42)

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The FAA is expected to receive some cost savings, as well, because of reduced paperwork and administrative costs that result from processing and issuing fewer applications and licenses. Cost savings to the FAA over ten years is estimated to be $424,000, undiscounted and $256,000, discounted. The FAA is expected to incur no costs resulting from the paperwork and administrative impacts. Over the ten-year time horizon of this analysis, the total cost savings to both industry and the FAA is expected to be approximately $729,000, undiscounted and $441,000, discounted.
There are numerous non-quantifiable impacts associated with this final rulemaking. The information coding requirements is are expected to increase clarity to both industry and government. Probably more importantly, however, is the fact that firms will be better able to plan future operations because this rulemaking extends the time period of the launch operator license to five years.
The narrower scope of launch licenses under this rulemaking is expected to slightly increase the launch operator’s risk of having to pay for any damages to third parties or government property. The activities that will no longer be covered under the narrower scope of the launch license are of low risk (such as ground activities prior to the arrival of the hazardous components of the launch vehicle). The higher burden of risk borne by the licensee should be considered low and inconsequential.
There is also a slightly lower risk to the U.S. Treasury that it will be called upon to indemnify for third-party damages under the "indemnification" provisions of the statute, because the launch phase is now more limited. The change in risk to the U.S. Treasury is expected to be minimal. This risk has not been quantified.

Regulatory Flexibility Determination
The Regulatory Flexibility Act of 1980 establishes "as a principle of regulatory issuance that agencies shall endeavor, consistent with the objective of the rule and of applicable statues, to fit regulatory and informational requirements to the scale of the business, organizations, and governmental jurisdictions subject to regulation." To achieve that principal, the Act requires agencies to solicit and consider flexible regulatory proposals and to explain the rationale for their actions. The Act 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 proposed or final rule will have a significant economic impact on a substantial number of small entities. If the determination is that it will, the agency must prepare a regulatory flexibility analysis (RFA) as described in the Act.
However, if an agency determines that a proposed or final rule is not expected to have a significant economic impact on a substantial number of small entities, section 605(b) of the 1980 act provides that the head of the agency must so certify and an RFA is not required. The certification must include a statement providing the factual basis for this determination, and the reasoning should be clear.
The FAA conducted the required review of this final rulemaking and determined that it would not have a significant economic impact on a substantial number of small entities. Accordingly, pursuant to the regulatory Flexibility Act, U.S.C. 605(b), the Federal Aviation Administration certifies that this rule will not have a significant economic impact on a substantial number of small entities.
Potentially Affected Entities
The Small Business Administration has defined small business entities relating to space vehicles [SIC codes 3761, 3764, and 3769] as entities comprising fewer than 1000 employees. The potentially affected entities are Lockheed-Martin, Boeing, Orbital Sciences Corporation, Sea Launch, Beal Aerospace Technologies and Universal Space Lines. Lockheed-Martin, Boeing and Orbital Sciences Corporation all have more than 1,000 employees and are therefore not small entities. Sea Launch is a partnership of various entities that includes Boeing and therefore would not be considered a small entity. Beal and Universal Space Lines each have under 1,000 employees and can therefore be considered small entities. According to an FAA forecast, Beal Aerospace Technologies will be issued a launch operator license in 2000 and Universal Space Lines will be issued a launch operator license in 2002.
　
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