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Before the United States House of Representatives Committee on Transportation and Infrastructure Subcommittee on Aviation on Commercial Space Regulation

Chair Larsen, Chair DeFazio, Ranking Member Graves, Ranking Member Graves, and Members of the Committee, thank you for the opportunity to meet with you today to discuss the topic of commercial space regulation. Commercial space activity is in the midst of a significant surge. The growth of the industry presents new challenges and opportunities as the technology evolves, and the number of industry participants expands. The FAA is committed to keeping pace with the growth of commercial space transportation, while prioritizing safety and ensuring access for all users of the National Airspace System (NAS).

Commercial Space Overview

The FAA, through the Office of Commercial Space Transportation (AST), licenses and permits the launch and reentry of commercial space vehicles consistent with public health and safety, safety of property, and the national security and foreign policy interests of the United States. The mission AST carries out includes the responsibility to encourage, facilitate, and promote U.S. commercial space transportation. These statutory objectives provide a framework that has resulted in an impressive safety record for a rapidly growing industry. The FAA has licensed or permitted over 450 launches and reentries, none of which has led to any fatalities, serious injuries, or significant property damage to members of the public.

The commercial space industry in the United States is dynamic, growing, and evolving. To illustrate recent growth, during each of the fiscal years (FY) 2018 through 2020, the FAA licensed an average of over 30 launches/reentries of commercial space vehicles. For FY 2021, we have already licensed 48 launches/reentries and expect significant growth in commercial launch activity beyond what we experienced over the last several years. Or, put another way, a decade ago the FAA licensed just a single launch in 2011. Five years ago, in 2016, the FAA licensed 11 launches, or about one per month. This calendar year, the FAA is averaging more than one licensed launch per week. As the industry continues to expand, the FAA has intensified its efforts to fulfill its commercial space mission, maintaining the highest level of safety without stifling industry growth.

A Streamlined Commercial Space Regulatory Framework

In 2018, the FAA began its work to streamline launch and reentry regulations to create an environment that promotes economic growth, minimizes uncertainty, protects safety, security, and foreign policy interests, and facilitates American leadership in space commerce. At that time, the existing commercial space regulatory framework was based largely on Federal launch standards that were developed in the 1990s or earlier, and were often overly prescriptive and a hindrance to innovation. Further, the rules were neither streamlined, nor consolidated. That regulatory structure may have satisfied the commercial space needs then, but the industry has changed substantially and continues to evolve. After two and a half years of focused work, the FAA published a final rule on December 10, 2020, that consolidated, updated, and streamlined all launch and reentry regulations into a single performance-based part—14 CFR part 450—to better fit today's fast-evolving commercial space transportation industry.[1] Part 450 includes regulations applicable to all launch and reentry vehicles, whether they have reusable components or not—a change from the prior framework. The updated regulations align with the goals of creating an environment that does not hinder industry innovation and importantly, enhances safety objectives without prescribing specific solutions. The commercial space industry provided extensive input during the public comment period for part 450, and we are pleased that initial reactions to the rule have been consistently positive. Additionally, after the rule was released, the FAA held a 3-day workshop and offered one-on-one meetings with companies to familiarize them with the final rule. Each operator who took advantage of these meetings conveyed that they were pleased with the final rule and appreciated our outreach efforts.

While the launch and reentry regulations have been published for several months and became effective on March 21, 2021, our engagement with industry on the requirements of the rules continues. AST has issued some advisory circulars to provide additional guidance on how to meet the requirements of part 450, and is developing more. We continue to engage with operators on specific aspects of part 450 compliance during pre-application consultations. Many of the advisory circulars that we anticipate issuing will provide detailed guidance for the industry on recommended safety procedures and practices for minimizing hazards. We expect that there will be launches licensed under part 450 in the near future.

Other Regulatory Considerations

We are constantly analyzing the regulatory needs of the industry for both public safety reasons and to ensure that the commercial space regulatory framework is performance-based and does not inhibit the health and success of the industry. In support of that effort, the FAA is revising the regulations applicable to orbital debris mitigation for launch and reentry operations. As part of this work, we are evaluating appropriate national and international standards for orbital debris mitigation including evaluating the safety risks of uncontrolled reentries of space objects. These evaluations will include considerations of the risks to both commercial aviation and people on the ground.  

Additionally, the Commercial Space Transportation Advisory Committee (COMSTAC) has recommended that part 440—Financial Responsibility—be reviewed and considered for revision. As part of our continuous review of the sufficiency of our commercial space regulations, we anticipate that a comprehensive analysis of this part would ensure that the right regulations with the right scope are in effect at the right time. Such a review would help to ensure that the public has the appropriate protections and that industry has clarity and flexibility to achieve the regulatory performance objectives without unnecessary burdens.

Part of AST’s responsibility is also to monitor commercial space transportation licensees to ensure they adhere to the conditions of their licenses and comply with the applicable regulatory and statutory requirements. In this regard, the FAA has broad authority to suspend or revoke a license, and impose civil penalties if necessary. The FAA takes our oversight responsibilities seriously to ensure licensees are in full compliance.

Office of Spaceports

Keeping up with an industry that is evolving rapidly is a challenge. The pace at which the commercial space industry continues to change has resulted in an increase in both the complexity and the volume of the workload for AST. Some of that complexity has required us to make structural changes to better execute our mission. As this Committee knows, the FAA Reauthorization Act of 2018 required us to identify within AST a centralized policy office to support launch and reentry sites and to generally support improvement of spaceports. In response to that mandate, the Office of Spaceports was officially established in March 2020, and is functioning today. AST is committed to removing barriers to competitiveness for spaceports and to helping ensure that the United States leads the world in space infrastructure.  The operation of the first non-Federal spaceport was licensed by the FAA in 1994, and there are currently 12 non-Federal spaceports across the United States licensed for launch or reentry operations. A spaceport license is valid for 5 years and is renewable. While the FAA considers many factors when reviewing an application for a spaceport license, two of the most important are public safety and environmental impact. The FAA carries out a thorough and rigorous application review process to make sure we issue a license consistent with our mandate to protect public health and safety, safety of property, and the foreign policy and national security interests of the United States.

We recognize that spaceports have significant potential to become important economic hubs. For example, of the 47 FAA licensed launches this fiscal year, six have occurred at FAA licensed spaceports. As a result, the Office of Spaceports has taken action to share information on the capabilities of U.S. spaceports broadly. For example, in October 2020, we published a web-based spaceport directory outlining U.S. spaceport infrastructure and capabilities and the services provided by FAA licensed spaceports, Federal launch ranges, and private commercial spaceports. This directory documents the capabilities of our nation’s network of spaceports for the commercial space transportation industry, as well as U.S. government space users, and may help to serve as a tool for the Office of Spaceports to identify future needs.

The Office of Spaceports is putting spaceports on the map. Spaceports or “Space Launch Activity Areas” are denoted as rocket symbols on aeronautical sectional charts increasing aviator awareness of launch or reentry activities in their area. The Office of Spaceports is also in the process of publishing additional instructional information about Space Launch Activity Areas in the FAA Airman’s Information Manual that will encourage aviators to check notices to airmen in these areas for additional launch or reentry specific information. These efforts help to integrate space and aviation activities and increase overall safety of the NAS.

The Office of Spaceports also facilitates FAA review and approval of space-related activities at FAA licensed spaceports to enable a stronger commercial space transportation industry. These activities include rocket engine testing, flight corridor development for supersonic, hypersonic, and suborbital space activities, and beta testing of new space launch platforms for future use by the commercial space transportation industry. Further, the Office of Spaceports works to facilitate commercial support for launches from Federal launch locations. Finally, the Office of Spaceports is evaluating whether the FAA’s spaceport regulations (part 420 and 433) for launch and reentry sites should also be updated.

Integration of Commercial Space into the NAS

Of the many challenges AST faces, integration of commercial space into the NAS is a top priority. Commercial space operations are currently treated as “special cases” in which air traffic controllers block off large sections of airspace for extended periods of time for a single launch. Although this process is currently manageable, it is unsustainable in the long run given the expected growth in commercial space launches. Moreover, the current process, while effective, is resource intensive and inefficient. Launch teams voluntarily provide real-time information concerning the status of a launch or reentry vehicle either over the telephone or over an internet connection. Under these limitations, launch teams can only support one mission at a time.

In AST, we are actively working on solutions to address how commercial space will grow within the NAS alongside commercial and general aviation. Our vision of spaceport operations is that they should be able to operate either co-located with airports or in close proximity to them. To this end, we are working on multiple initiatives. We worked with the FAA’s William J. Hughes Technical Center in Atlantic City, New Jersey to build the agency’s first dedicated commercial space integration lab for developing and prototyping technologies that will be leveraged towards enhancing commercial space operation awareness to better manage the NAS. Additionally, AST continues its work with the FAA’s Air Traffic Organization on the Space Data Integrator technology. This safety-based technology, which will automate the current manual processes, will enable the FAA to track a space mission’s progress as it flies through the airspace. When deployed, this technology will enable the FAA to better manage the airspace that must be closed to other users and more quickly implement and release airspace restrictions as a mission progresses. At the FAA, we recognize that our role is not just limited to the safety of the airspace—but to ensure equal access to it as well. We are fully engaged in balancing the needs of all airspace users—including traditional manned aircraft, drones, commercial space transportation, and others.

Conclusion

In closing, the FAA is committed to effectively carrying out its responsibilities for public safety and the health of the commercial space transportation industry. We will continue to assess our entire regulatory framework in light of the industry’s growth and look forward to working with Congress and industry to strike the appropriate balance. This concludes my testimony, and I will be glad to answer any questions from the Committee.

Charter Accomplished, More Work Ahead

Opening Remarks

Thanks, Jeannie. And thanks to everyone for joining us today for this update.

This coming Monday, May 24, happens to be Aviation Maintenance Technician Day. As a former fighter pilot, and commercial aviator, there is nothing more important than having a safe, fully functioning aircraft. Aviation Maintenance Technicians make sure we have it.

This day is a chance to pay tribute to some of the hardest working and dedicated people in the industry. They are unsung heroes who make it possible for people to safely fly and for us to have a vibrant aerospace system.

In the coming years, we’re going to need a lot more aviation maintenance technicians.

We’re also going to need new pilots, engineers, dispatchers, and air traffic controllers. We’re going to need more mechanics and drone operators.

And we’re going to need cybersecurity specialists, data analysts, programmers, developers, and other professionals who play an essential role in the modern aerospace field, which as we know is evolving rapidly.

Both the FAA and industry are making it a high priority to attract this future workforce.

Prior to COVID-19, there was an urgency surrounding the potential shortage of employees in the pipeline to fill critical positions, notably pilots and mechanics.

We were already seeing an aging workforce. And retirements were sped up to some extent by the pandemic.

But when it comes to attracting the next generation, the aerospace field faces challenges.

There is strong competition from other sectors.

There are also higher training costs and time commitments, especially for new pilots.

Add onto that quality of life issues, a desire for schedule predictability, and job volatility because of the cyclical nature of some segments of our industry. It can all be discouraging. 

When we face complex challenges like these, the FAA will periodically form executive oversight committees and virtual offices with time-limited charters, so we can make special efforts in areas that require cross-agency collaboration.

That’s what we did here. We formed the FAA Aerospace Workforce Steering Committee in early 2019. It was an outcome of an FAA-sponsored symposium with industry, government, and academia on potential workforce shortages for pilots and mechanics.

The initial purpose of this Committee was to follow up on industry recommendations and to maintain the momentum within the FAA and with our partners.

This Committee also became a forum to implement the FAA’s STEM and Aviation and Space Education goals and objectives, and implement the agency’s many Congressionally-assigned workforce provisions in our 2018 Reauthorization bill.

Fast forward two years later – this Steering Committee has now accomplished its charter and will soon be sunset. The Committee’s specific initiatives have now been embedded into the FAA’s strategic goals and plans.

Let me say a firm thank you to all of our stakeholders. We very much appreciate your input, recommendations, and partnership.

Today, as Jeannie said, we will update you on the Committee’s progress to date, and provide you with the points of contact in the agency who will continue to lead the enduring initiatives and programs.

Thank you again, and now our Deputy Administrator Brad Mims will stress a few points.

Closing Remarks

This has been a great session. I appreciate the continued engagement by everyone throughout this community.

The Aerospace Workforce Steering Committee has achieved its founding purpose. We’ve embedded these efforts and programs into the agency’s strategic plans.

We have several efforts to be proud of:

STEM programs like Adopt-a-School and the Airport Design Challenge.

Also, we launched the Aviation Workforce Development grants.

And we stood up the Women in Aviation Advisory Board and the Youth Access to American Jobs in Aviation Task Force.

We’ve also looked at ways to reduce regulatory barriers to entry to an aerospace career. We’ve looked at ways to make the pathways easier.

And we’ve made good progress on implementing four new grant programs that will be further tools for developing the future workforce. 

We look forward to our continued work with you to conduct education and career outreach.

Years from now, we’ll look back and know that the efforts we are all making today – as an aerospace community – brought about the vibrant, diverse workforce that will be second to none in the aerospace field throughout the world tomorrow.

Thanks everyone. And please continue to stay safe.

Pride and Professionalism

Thank you, Sarah [MacLeod]. Hello everyone. I’m happy to speak with you today, although I hope in the near future we’ll be able to meet in person.

Let me start with the bottom line: the success and safety of the aviation system owes a great deal of credit to Aviation Maintenance Technicians.

You don’t make the headlines. But at the end of the day, your work speaks volumes about pride and professionalism. The honest-to-goodness hard work that doesn’t just get the job done, it gets it done right.

And we must maintain this strong safety culture, as we deal with the many changes and challenges in aviation now.

Changing Industry

COVID-19 has shown us just how rapidly things can change. Some airline business models have changed. In some cases, they’ve shifted operations to different airports. Some passenger carriers have gone into cargo. And some airlines are retiring old aircraft and replacing them with a new modern fleet.

These changes can introduce new stressors on the safety of the system. I know that repair stations have taken on added tasks like long-term storage of aircraft. You’ve had to wear PPE on top of your standard protective equipment. And you’ve had to socially distance while also working in teams to get the job done. All of this makes the job more difficult.

Adding on top of that, the tremendous innovation in aerospace. Like drones, rockets, air taxis, and supersonic transport.

As a community, we must strive to stay ahead of these changes.

Safety

And we must strive for continuous improvement in reducing safety risk.

As commercial aviation recovers from COVID-19, we’ll be bringing back aircraft into service. In addition to maintaining the current fleet, there will be the added work of bringing back the 737 MAX. We have to make sure that maintenance continues to be performed at an outstandingly safe level.

We have a rulemaking effort underway to expand Safety Management Systems into repair stations. It’s too soon to provide any details until we issue a Notice of Proposed Rulemaking.

While we work to implement the new rules, we continue to encourage voluntary adoption of SMS. I want to thank those who have an approved SMS process in place, and those that have submitted applications.

The FAA continues to look for innovative ways to improve our safety processes. Because of COVID-19, we’re making more use of virtual means to conduct certification and surveillance.

For instance, a repair shop in Louisiana wanted to get an additional rating so they could provide a plasma spray service for their commercial aircraft customers.

They made a video of the process. And as long as our inspectors were satisfied with the currency and clarity of the video, they could issue the new rating. Once COVID-19 is over, we anticipate continuing to use remote technologies as part of our safety processes.  

The FAA’s Office of Aviation Safety is also putting a big focus on consistency in applying regulations. We know you don’t want an FAA inspector in one part of the country applying the rules differently than an inspector in another part.

To improve consistency, we stress the need for inspectors to exercise critical thinking and consult with each another when they address regulatory issues. We build this focus into our inspector training.

International

Of course, the safety of MRO’s is a global effort. We continue to work with other States to establish bilateral safety agreements and through ICAO to address safety concerns in the most efficient way.

For repair stations, we have established bilateral agreements with certain member states – Canada, the UK, European Union, Switzerland, Singapore and Brazil – to share surveillance work. This helps reduce the regulatory burden.

There is ongoing work at ICAO to harmonize certification standards for repair stations. The FAA is actively participating in that work. There are many legal and safety issues that still need to be worked out before that can happen.

Future AMT Workforce

With regard to the future workforce, we are concerned about the shortage of AMT’s – a shortage that existed well before COVID-19. I’ve seen estimates that this industry will need as many as 10,000 new technicians each year for the foreseeable future.

The FAA has been assisting the Department of Defense on a program that provides civil aviation maintenance training to service members, veterans and their families. This training can be a springboard to future training to become FAA-certified A&P mechanics.

We also meet with ARSA on a quarterly basis to focus on future workforce strategy. And we’re working with groups like the Aviation Technical Education Council and Helicopter Association International to attract young people to the aviation field. We’ve worked with these partners to streamline the delivery of aviation training and provide focused training in segments like commercial aviation, helicopters, unmanned aircraft, and avionics.

We’re also working with the Choose Aerospace organization to develop aviation maintenance curriculums for high school students. These efforts will encourage students to check out aviation maintenance as a potential career field.

In addition to the overall shortage of AMT’s, there’s a shortage of diversity too. For instance, women are underrepresented in the AMT ranks, as well as other technical ranks in aviation. We want the best, brightest, and most diverse group of people from all walks of life. We want to recruit more women, minorities and people from underserved communities to join us in meeting our aviation safety goals. So let’s continue to put a focus on that.   

In closing, I want to express my appreciation again for the pride and professionalism that aviation maintenance technicians demonstrate every single day. And thanks again for collaborating with us to ensure safety and recruit the future AMT workforce. We look forward to continuing our work with you in the years ahead.

Thank you. I’m happy to take a few questions.

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