flexibility to develop means of compliance that maximize their business
objectives while maintaining an equivalent level of safety to the
agency's current regulations. Because this rulemaking would amend the
FAA's launch and reentry requirements, it falls under the authority
delegated by the Act.
3. Description of the Recordkeeping and Other Compliance Requirements
    The FAA is not proposing any substantive changes to the
requirements specified below. However, the agency is proposing to
consolidate these requirements into a new, proposed part 450 (Launch
and Reentry License Requirements); clarify that the consolidated
requirements apply to any licensed launch or reentry; and make other
minor, clarifying edits. The following is a summary of the proposed
changes:
i. Public Safety Responsibility and Compliance With License
    The FAA would consolidate the public safety responsibility
requirements in current Sec. Sec.  417.7 and 431.71(a) into proposed
Sec.  450.201, Public Safety Responsibility. Also, the FAA would move
the compliance requirement in current Sec.  431.71(b) to its own
section, proposed Sec.  450.203 (Compliance with License). Although the
location of these requirements would change, the requirements
themselves would not change.
    Therefore, proposed Sec.  450.201 would provide that a licensee is
responsible for ensuring public safety and safety of property during
the conduct of a licensed launch or reentry. And proposed Sec.  450.203
would require that a licensee conduct a licensed launch or reentry in
accordance with representations made in its license application, the
requirements of part 450, subparts C and D, and the terms and
conditions contained in the license. A licensee's failure to act in
accordance with these items would be sufficient basis to revoke a
license, or some other appropriate enforcement action.
ii. Records.
    The FAA would consolidate the current record requirements in
Sec. Sec.  417.15(a) and (b) and 431.77(a) and (b) into proposed Sec.
450.219(a) and (b). However, the FAA would replace the term ``launch
accident'' in paragraph (b) with ``class 1 or class 2 mishap.'' As
discussed in more detail in the Part 401--Definitions section of this
preamble, the FAA is proposing to replace current part 401 definitions
involving ``accident,'' ``incident,'' and ``mishap'' with specified
mishap classes.
    As such, the proposed regulation would require a licensee to
maintain, for 3 years, all records, data, and other material necessary
to verify that a launch or reentry is conducted in accordance with
representations contained in the licensee's application. The exception
would be for a class 1 or class 2 mishap, where a licensee would be
required to preserve all records related to the event. These records
would be required to be retained until the completion of any Federal
investigation and the FAA has notified the licensee that the records
need not be retained. The licensee would be required to make all
records required to be maintained under the regulations available to
Federal officials for inspection and copying.
4. All Federal Rules That May Duplicate, Overlap, or Conflict
    No other federal rules duplicate, overlap, or conflict with FAA's
launch and reentry licensing requirements.
5. Description and an Estimated Number of Small Entities Impacted
    The FAA has identified two potential small entities that this
proposed rule would impact, Vector Launch, Inc. and Generation Orbit.
Both operators employ fewer than 1,500 people and both were in pre-
application consultation to launch under parts 415 and 417 at the time
of this writing.\220\ These two companies are the only small entities
identified in this analysis that may be directly affected by this
proposed rule.
---------------------------------------------------------------------------

    \220\ The FAA uses the current Small Business Administration
size standard of 1,500 employees for passenger and freight air
transportation. This information is found in https://www.sba.gov/sites/default/files/files/Size_Standards_Table_2017.pdf.
---------------------------------------------------------------------------

6. Alternatives Considered
    The FAA considered three alternatives to the proposed rule.
i. No Change to Current Regulations
    This alternative was not chosen because the current regulations are
outdated, prescriptive, and do not adequately reflect industry current
practices or technology development. The inefficiency of the licensing
process due to current regulations risks stifling innovation and growth
of the industry, especially for small operators.
ii. Propose a More Process-Based Regulatory Approach
    With this alternative, the FAA would propose less detailed
regulations that would rely primarily on the outcome of an operator's
system safety process to protect public safety. This alternative was
not chosen because it would lack regulatory clarity without adding any
additional flexibility for a launch or reentry operator which may be
more burdensome to small operators compared to large operators.
iii. Propose a Defined Modular Application Process
    With this alternative, the FAA would propose similar safety
requirements but would add a more defined incremental

or modular application process. The current proposal enables an
incremental application process, but does not define one with explicit
modules and time frames. This alternative was not chosen because the
FAA has no experience with an incremental or modular application
process with which to base a proposal. In addition, a more defined
incremental or modular application process may be less flexible and
scalable and therefore more burdensome to small operators.
    The FAA expects this proposed rule would provide regulatory relief
to small entities from current prescriptive requirements and result in
net savings.
    As discussed previously in this section, the FAA identified two
possible small entities that would be affected by this proposed rule
but they are in the pre-application stage for potential ELV and RLV
launches and we have little information on how they may comply with
existing or proposed requirements. As these entities have not begun
operations, we do not have estimates of the costs savings or costs that
would reliably apply. However, the following are some estimates of per
entity cost savings and costs based on data representing existing ELV
and RLV operators. We note that some of the estimated savings and costs
of this proposed rule may not apply to these entities.
Cost Savings
i. Readiness--Elimination of Pre-Launch Meeting 15 Days Prior (Sec.
450.155)
    ELV operators might save $4,600 per avoided launch readiness
meeting, however this assumes the average number of people at each
meeting would be 25 and this might not apply to a small business.
ii. Flight Safety System--Not Required for All Launches (Sec.  450.145)
    For launches where an FSS would not be required under the proposal,
RLV operators might save $195,000 per launch vehicle for a vehicle
using an existing design. An ELV operator might save $680,000 per
launch. Both ELV and RLV operators might save an estimated $1.3 million
for new vehicle designs by not having to incur all the research,
design, testing, materials and installation costs for an FSS.
iii. Ground Hazard Analysis (Sec.  450.185)
    An ELV operator might save $28,000 per application by not having to
do a ground hazard analysis under this proposal.
Costs
i. Payload Review and Determination (Sec.  450.43)
    The proposed rule could cause small operators to incur about $204
more per launch than due to additional payload review and determination
costs.
ii. Ground Hazard Analysis (Sec.  450.185)
    RLV applicants might incur about $3,000 more per application due to
having to perform ground hazard analyses under the proposal.
    The FAA invites comments on this initial regulatory flexibility
analysis for the proposed rule. Send comments by any of the methods
identified under Addresses in this proposed rule. Specifically, the FAA
requests information and data that can be used to quantify savings and
costs to small operators directly affected by this proposed rule.
Please provide references and sources for information and data.

C. International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits federal
agencies from establishing standards or engaging in related activities
that create unnecessary obstacles to the foreign commerce of the United
States. Pursuant to these Acts, the establishment of standards is not
considered an unnecessary obstacle to the foreign commerce of the
United States, so long as the standard has a legitimate domestic
objective, such as the protection of safety, and does not operate in a
manner that excludes imports that meet this objective. The statute also
requires consideration of international standards and, where
appropriate, that they be the basis for U.S. standards. The FAA has
assessed the potential effect of this proposed rule and determined that
it will not create unnecessary obstacles to the foreign commerce of the
United States.

D. Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each federal agency to prepare a written statement
assessing the effects of any Federal mandate in a proposed or final
agency rule that may result in an expenditure of $100 million or more
(in 1995 dollars) in any one year by State, local, and tribal
governments, in the aggregate, or by the private sector; such a mandate
is deemed to be a ``significant regulatory action.'' The threshold
after adjustment for inflation is $150 million using the most current
annual (2017) Implicit Price Deflator for Gross Domestic Product from
the U.S. Bureau of Economic Analysis. This proposed rule does not
contain such a mandate; therefore, the requirements of Title II of the
Act do not apply.

E. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires
that the FAA consider the impact of paperwork and other information
collection burdens imposed on the public. According to the 1995
amendments to the Paperwork Reduction Act (5 CFR 1320.8(b)(2)(vi)), an
agency may not collect or sponsor the collection of information, nor
may it impose an information collection requirement unless it displays
a currently valid Office of Management and Budget (OMB) control number.
    This action contains the following proposed consolidation of two
existing information collection requirements, previously approved under
OMB Control Numbers 2120-0608 and 2120-0643, under a new OMB control
number. As required by the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(d)), the FAA will submit the proposed information collection
requirements to OMB for its review. In addition, the FAA has published
a separate notice of the proposed requirements for public comment, and
has included the notice in the docket for this rulemaking. The notice
includes instructions on how to submit comments specifically to the
proposed information collection requirements. Additional details on
assumptions and calculations used in this section are presented in the
Preliminary Regulatory Impact Analysis available in the docket of this
rulemaking. The following estimates are included in the total savings
and costs summarized in the Regulatory Evaluation section and
considered in the Regulatory Flexibility Determination section of this
proposed rule.
    Summary: The FAA proposes to consolidate under a new part 450, the
requirements currently contained in parts 415 and 417 for the launch of
an ELV, in part 431 for the launch and reentry of an RLV, and in part
435 for the reentry of a reentry vehicle other than an RLV. The result
of this effort would be streamlined regulations designed to be more
flexible and scalable, with reduced timelines and minimal duplicative
jurisdiction. The net result would be reduced paperwork for operators,
although for some provisions paperwork would increase.
    Use: The information would be used by FAA to evaluate the launch
and

reentry operators' applications and to ensure safety.
Paperwork Impact to Industry
    Respondents (including number of): The information collection would
potentially affect 12 operators based on available data at the time of
writing.
    Annual Burden Estimate: Most changes in part 450 would result in a
reduction in the paperwork burden. The paperwork associated with
industry requesting waivers to certain provisions would be alleviated.
Paperwork associated with industry requesting license modifications
would also be reduced because an operator would not have to modify a
license if the specific safety official were to change. In addition,
with the extension of RLV licenses to up to five years, it is likely
that fewer licenses would be issued, resulting in less paperwork. Due
to the change in launch scope, the documentation accompanying a ground
hazard analysis for ELV operators would be reduced.
Industry Cost Savings
    The following table indicates the frequency of responses, the
estimated time per response, the burdened wage rate, annual hours, and
the cost for each cost saving provision. Response frequency is provided
for the estimated number of waivers avoided (Sec.  450.3), estimated
reduction in annual number of licenses modified (Sec.  450.103),
estimated reduction in annual license renewals, and the estimated
annual number of launches for which there would be a reduction in
ground hazard analysis paperwork (Sec.  450.185). An estimated time for
each response is also indicated below, as are burdened hourly wage
rates for the specific personnel associated with each provision and
annual hours and total cost savings.

                                         Industry Paperwork Cost Savings
----------------------------------------------------------------------------------------------------------------
                                                  Estimated time
           Description               Response      per response    Industry wage   Annual hours    Cost savings
                                     frequency        (hours)          rate
----------------------------------------------------------------------------------------------------------------
Waiver Avoidance (Sec.   450.3).              17              20         $100.03             340         $34,010
System Safety Program--Safety                5.6              24           71.01           134.4           9,544
 Official (Sec.   450.103)......
Duration of a Vehicle License                1.2           126.5           81.28           151.8          12,338
 (Sec.   450.7).................
Ground Safety (Sec.   450.185)..               1             340           81.28             340          27,634
                                 -------------------------------------------------------------------------------
    Total Annual Savings........  ..............  ..............  ..............             966          83,526
----------------------------------------------------------------------------------------------------------------

    Cost savings includes paperwork related to waivers avoided due to
the definition of launch, waterborne vessel protection, and removal of
48-hour readiness requirement.
Industry Paperwork Burden
    Other changes would result in an increase in paperwork burden. The
Payload Review and Determination section (Sec.  450.43) would add
requirements for applicants to provide explosive potential of payload
materials, alone and in combination with other materials on the payload
for launches, as well as the appropriate transit time to final orbit
for payloads with significant transit time after release from vehicle.
The FAA is adding requirements for ground hazard analysis (Sec.
450.185) for RLV launches. The proposed rule would require RLVs to
submit information to the FAA.
    The table below indicates the frequency of responses, estimated
time per response, burdened hourly wage rate, annual hours, and the
cost for each provision that would add burden. Response frequency is
provided for the estimated number of explosive potential and transit
time calculations, and the estimated number of annual RLV applications
which would require ground hazard analysis. An estimated time per
response is also indicated below, as are burdened hourly wage rates for
the specific personnel associated with each provision and annual hours
and total cost savings.

                                            Industry Paperwork Burden
----------------------------------------------------------------------------------------------------------------
                                                  Estimated time
           Description               Response      per response    Industry wage   Annual hours        Cost
                                     frequency        (hours)          rate
----------------------------------------------------------------------------------------------------------------
Explosive Potential (Sec.                     50               2          $81.28             100          $8,128
 450.43)........................
Transit time (Sec.   450.43)....              50             0.5           81.28              25           2,032
Ground Safety (Sec.   450.185)..               2              36           81.28              72           5,852
                                 -------------------------------------------------------------------------------
    Total Cost Burden...........  ..............  ..............  ..............             197          16,012
----------------------------------------------------------------------------------------------------------------

    The following table summarizes the industry total annual paperwork
savings, total annual burden and the net annual savings.

                     Industry Net Paperwork Savings
------------------------------------------------------------------------
               Description                 Annual hours    Cost savings
------------------------------------------------------------------------
Total Annual Savings....................             966         $83,526
Total Annual Burden.....................             197          16,012
                                         -------------------------------

    Net Annual Savings..................             769          67,514
------------------------------------------------------------------------

Paperwork Burden to the Federal Government
    The following tables summarizes FAA paperwork savings and burden.
Similar to industry burden savings, the FAA would receive burden relief
from waivers avoided due to the definition of launch, waterborne vessel
protection, and removal of the 48-hour readiness requirement. See the
Regulatory Impact Analysis available in the docket for more details on
these estimates and calculations.

                                           FAA Paperwork Cost Savings
----------------------------------------------------------------------------------------------------------------
                                                  Estimated time
                   Description                     per response    FAA wage rate   Annual hours    Cost savings
                                                      (hours)
----------------------------------------------------------------------------------------------------------------
Waiver Avoidance (Sec.   450.3).................             7.5          $83.26           127.5         $10,616
System Safety Program--Safety Official (Sec.                  24           82.88           134.4          11,139
 450.103).......................................
Duration of a Vehicle License (Sec.   450.7)....           253.5           83.61           304.2          25,434
Ground Safety (Sec.   450.185)..................             439           82.88             439          36,384
                                                 ---------------------------------------------------------------
    Total Annual Savings........................  ..............  ..............           1,005          83,573
----------------------------------------------------------------------------------------------------------------

                                              FAA Paperwork Burden
----------------------------------------------------------------------------------------------------------------
                                                  Estimated time
                   Description                     per response    FAA wage rate   Annual hours    Cost savings
                                                      (hours)
----------------------------------------------------------------------------------------------------------------
Explosive Potential (Sec.   450.43).............             2.0          $82.88             100          $8,288
Transit time (Sec.   450.43)....................             0.5           82.88              25           2,072
Ground Safety (Sec.   450.185)..................              40           82.88              80           6,630
                                                 ---------------------------------------------------------------
    Total Annual Burden.........................  ..............  ..............             205          16,990
----------------------------------------------------------------------------------------------------------------

                        FAA Net Paperwork Savings
------------------------------------------------------------------------
               Description                 Annual hours    Cost savings
------------------------------------------------------------------------
Total Annual Savings....................           1,005         $83,573
Total Annual Burden.....................             205          16,990
                                         -------------------------------
    Net Annual Savings..................             800          66,583
------------------------------------------------------------------------

Voluntary One-Time Modification of Existing Licenses
    There are currently 24 active licenses held by 12 operators. Once
the rule is in effect, existing licenses would be grandfathered under
the current provisions, unless the licenses are modified. Operators may
choose to modify their licenses to benefit from the cost saving
provisions of the proposed rule--some operators may choose also to wait
until they apply for a new license. The FAA assumes modifications of
licenses would occur within the first year after the rule is effective.
The FAA assumes it would take about one month for an industry aerospace
engineer to develop documentation and analysis to apply for a
modification of an existing license and about two weeks for an FAA
employee to review an application for a modification of an existing
license.
    The following estimates assume all licenses would be modified. This
overestimates paperwork costs, since some operators may not find it
advantageous to modify their existing licenses. The FAA requests
comment on these assumptions and the following estimates to apply for
applications to modify existing licenses. Specifically, the FAA
requests information if licenses holders would modify existing licenses
for changes from this proposed rule or wait to apply for new licenses.
The FAA may revise these assumptions and estimates for the final rule.

                                           Industry Burden Costs for Applications To Modify Existing Licenses
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Time (one month
                       Year                            Wage rate      of work hours)      Cost per        Number of       Total burden     Total costs
                                                                            *             license          licenses          hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.................................................          $81.28              173          $14,061               24            4,152         $337,457
--------------------------------------------------------------------------------------------------------------------------------------------------------
* One month of work hours based on the following calculations: 52 work weeks/year x 40 work hours/week = 2,080 work hours/year; and, 2,080 work hours/
  year / 12 months = 173 work hours/month (rounded).

                                           FAA Burden Costs To Review Applications To Modify Existing Licenses
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Hours (two
                       Year                            Wage rate      weeks of work       Cost per        Number of       Total burden     Total costs
                                                                          hours)          license          licenses          hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.................................................          $82.88               80           $6,630               24            1,920         $159,130
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The agency is soliciting comments to--
    (1) Evaluate whether the proposed information requirement is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden;
    (3) Enhance the quality, utility, and clarity of the information to
be collected; and
    (4) Minimize the burden of collecting information on those who are
to respond, including by using appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology.
    Individuals and organizations may send comments on the information
collection requirement to the address listed in the ADDRESSES section
at the beginning of this preamble by June 14, 2019. Comments also
should be submitted to the Office of Management and Budget, Office of
Information and Regulatory Affairs, Attention: Desk Officer for FAA,
New Executive Building, Room 10202, 725 17th Street NW, Washington, DC
20053.

F. International Compatibility

    In keeping with U.S. obligations under the Convention on
International Civil Aviation, it is FAA policy to conform to
International Civil Aviation Organization (ICAO) Standards and
Recommended Practices to the maximum extent practicable. The FAA has
determined that there are no ICAO Standards and Recommended Practices
that correspond to these proposed regulations.

G. Environmental Analysis

    FAA Order 1050.1F identifies FAA actions that are categorically
excluded from preparation of an environmental assessment or
environmental impact statement under the National Environmental Policy
Act in the absence of extraordinary circumstances. The FAA has
determined this rulemaking action qualifies for the categorical
exclusion identified in paragraph 5-6.6 and involves no extraordinary
circumstances.

V. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this proposed rule under the principles and
criteria of Executive Order 13132, Federalism. The agency has
determined that this action would not have a substantial direct effect
on the States, or the relationship between the Federal Government and
the States, or on the distribution of power and responsibilities among
the various levels of government, and, therefore, would not have
Federalism implications.

B. Executive Order 13211, Regulations That Significantly Affect Energy
Supply, Distribution, or Use

    The FAA analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). The agency has determined that it
would not be a ``significant energy action'' under the executive order
and would not be likely to have a significant adverse effect on the
supply, distribution, or use of energy.

C. Executive Order 13609, International Cooperation

    Executive Order 13609, Promoting International Regulatory
Cooperation, promotes international regulatory cooperation to meet
shared challenges involving health, safety, labor, security,
environmental, and other issues and to reduce, eliminate, or prevent
unnecessary differences in regulatory requirements. The FAA has
analyzed this action under the policies and agency responsibilities of
Executive Order 13609, and has determined that this action would have
no effect on international regulatory cooperation.

D. Executive Order 13771, Reducing Regulation and Controlling
Regulatory Costs

    This proposed rule is expected to be a deregulatory action under
Executive Order 13771 and would result in net cost savings for industry
that would likely reduce the future cost of innovation in U.S.
commercial space transportation. The Preliminary Regulatory Impact
Analysis for the proposed rule provides additional information.

VI. Additional Information

A. Comments Invited

    The FAA invites interested persons to participate in this
rulemaking by submitting written comments, data, or views. Also, the
agency invites comments regarding potential overlap with the regulatory
requirements of other agencies not addressed in this proposed rule. In
addition, the FAA invites comments relating to the economic,
environmental, energy, or federalism impacts that might result from
adopting the proposals in this document. The most helpful comments
reference a specific portion of the proposal, explain the reason for
any recommended change, and include supporting data. To ensure the
docket does not contain duplicate comments, commenters should send only
one copy of written comments, or if comments are filed electronically,
commenters should submit only one time.
    The FAA will file in the docket all comments it receives, as well
as a report summarizing each substantive public contact with FAA
personnel concerning this proposed rulemaking. Before acting on this
proposal, the FAA will consider all comments it receives on or before
the

closing date for comments. The FAA will consider comments filed after
the comment period has closed if it is possible to do so without
incurring expense or delay. The agency may change this proposal in
light of the comments it receives.
    Proprietary or Confidential Business Information: Commenters should
not file proprietary or confidential business information in the
docket. Such information must be sent or delivered directly to the
person identified in the FOR FURTHER INFORMATION CONTACT section of
this document, and marked as proprietary or confidential. If submitting
information on a disk or CD ROM, mark the outside of the disk or CD
ROM, and identify electronically within the disk or CD ROM the specific
information that is proprietary or confidential.
    Under 14 CFR 11.35(b), if the FAA is aware of proprietary
information filed with a comment, the agency does not place it in the
docket. It is held in a separate file to which the public does not have
access, and the FAA places a note in the docket that it has received
it. If the FAA receives a request to examine or copy this information,
it treats it as any other request under the Freedom of Information Act
(5 U.S.C. 552). The FAA processes such a request under Department of
Transportation procedures found in 49 CFR part 7.

B. Availability of Rulemaking Documents

    An electronic copy of rulemaking documents may be obtained from the
internet by--Searching the Federal eRulemaking Portal (http://www.regulations.gov);
    Visiting the FAA's Regulations and Policies web page at http://www.faa.gov/regulations_policies or
    Accessing the Government Printing Office's web page at http://www.gpo.gov/fdsys/.
    Copies may also be obtained by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue SW, Washington, DC 20591, or by calling<PHONE_NUMBER>.
Commenters must identify the docket or notice number of this
rulemaking.
    All documents the FAA considered in developing this proposed rule,
including economic analyses and technical reports, may be accessed from
the internet through the Federal eRulemaking Portal referenced in item
(1) above.

List of Subjects

14 CFR Part 401

    Organization and functions (Government agencies), Space
transportation and exploration.

14 CFR Part 404

    Administrative practice and procedure, Space transportation and
exploration.

14 CFR Part 413

    Confidential business information, Space transportation and
exploration.

14 CFR Part 414

    Airspace, Aviation safety, Space transportation and exploration.

14 CFR Part 420

    Environmental protection, Reporting and recordkeeping requirements,
Space transportation and exploration.

14 CFR Part 437

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements, Space transportation and exploration.

14 CFR Part 440

    Indemnity payments, Insurance, Reporting and recordkeeping
requirements, Space transportation and exploration.

14 CFR Part 450

    Aircraft, Aviation safety, Environmental protection,
Investigations, Reporting and recordkeeping requirements, Space
transportation and exploration.

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend chapter III of title 14, Code of
Federal Regulations as follows:

PART 401--ORGANIZATION AND DEFINITIONS

0
1. The authority citation for part 401 continues to read as follows:

    Authority:  51 U.S.C. 50101-50923.

0
2. In Sec.  401.5:
0
a. Add, in alphabetical order, the definitions of ``Anomaly,''
``Casualty area,'' and ``Command control system'';
0
b. Revise the definition of ``Contingency abort'';
0
c. Add, in alphabetical order, the definitions of ``Control entity,''
``Countdown,'' ``Critical asset,'' ``Crossrange,'' ``Data loss flight
time,'' ``Deorbit,'' ``Disposal,'' ``Dose-response relationship,''
``Downrange,'' and ``Effective casualty area'';
0
d. Remove the definition of ``Emergency abort'';
0
e. Add, in alphabetical order, the definition of ``Expected casualty,''
``Explosive debris,'' ``Flight abort,'' ``Flight abort crew,'' ``Flight
abort rules,'' ``Flight hazard area,'' and ``Flight safety limit'';
0
f. Revise the definition of ``Flight safety system'';
0
g. Add, in alphabetical order, the definitions of ``Gate'' and ``Hazard
control'';
0
h. Remove the definition of ``Human space flight incident'';
0
i. Revise the definitions of ``Instantaneous impact point'' and
``Launch'';
0
j. Remove the definitions of ``Launch accident'' and ``Launch
incident'';
0
k. Add, in alphabetical order, the definitions of ``Launch or reentry
system,'' ``Launch window,'' ``Liftoff,'' and ``Limits of a useful
mission'';
0
l. Revise the definition of ``Mishap'';
0
m. Add, in alphabetical order, the definitions of ``Mishap, Class 1,''
``Mishap, Class 2,'' ``Mishap, Class 3'', ``Mishap, Class 4,''
``Neighboring operations personnel,'' ``Normal flight,'' ``Normal
trajectory,'' ``Operating environment,'' and ``Operation hazard'';
0
n. Revise the definition of ``Operator'';
0
o. Add, in alphabetical order, the definitions of ``Orbital
insertion,'' ``Physical containment,'' ``Probability of casualty,'' and
``Public'';
0
p. Remove the definition of ``Public safety'';
0
q. Revise the definition of ``Reenter; reentry'';
0
r. Remove the definitions of ``Reentry accident'' and ``Reentry
incident'';
0
s. Add, in alphabetical order, the definition of ``Reentry window'';
0
t. Revise the definition of ``Safety critical'';
0
u. Add, in alphabetical order, the definitions of ``Service life'' and
``Software function'';
0
v. Revise the definition of ``State and United States'';
0
w. Add, in alphabetical order, the definitions of ``Sub-vehicle
point,'' ``System hazard,'' ``Toxic hazard area,'' ``Tracking icon,''
``Uncontrolled area,'' ``Unguided suborbital launch vehicle,''
``Uprange,'' and ``Vehicle response modes'';
0
x. Remove the definition of ``Vehicle safety operations personnel'';
and
0
y. Add, in alphabetical order, the definitions of ``Wind weighting
safety system'' and ``Window closure''.
    The additions and revisions read as follows:

Sec.  401.5  Definitions.

* * * * *
    Anomaly means any condition during licensed or permitted activity
that

deviates from what is standard, normal, or expected, during the
verification or operation of a system, subsystem, process, facility, or
support equipment.
* * * * *
    Casualty area means the area surrounding each potential debris or
vehicle impact point where serious injuries, or worse, can occur.
    Command control system means the portion of a flight safety system
that includes all components needed to send a flight abort control
signal to the on-board portion of a flight safety system.
    Contingency abort means a flight abort with a landing at a planned
location that has been designated in advance of vehicle flight.
    Control entity means a person or device that can control another
device or process.
    Countdown means the timed sequence of events that must take place
to initiate flight of a launch vehicle or reentry of a reentry vehicle.
* * * * *
    Critical asset means an asset that is essential to the national
interests of the United States. Critical assets include property,
facilities, or infrastructure necessary to maintain national defense,
or assured access to space for national priority missions.
    Crossrange means the distance measured along a line whose direction
is either 90 degrees clockwise (right crossrange) or counter-clockwise
(left crossrange) to the projection of a vehicle's planned nominal
velocity vector azimuth onto a horizontal plane tangent to the
ellipsoidal Earth model at the vehicle's sub-vehicle point. The terms
right crossrange and left crossrange may also be used to indicate
direction.
    Data loss flight time means the shortest elapsed thrusting or
gliding time during which a vehicle flown with a flight safety system
can move from its trajectory to a condition where it is possible for
the vehicle to violate a flight safety limit.
    Deorbit means the flight of a vehicle that begins with the final
command to commit to a perigee below 70 nautical miles (approximately
130 kilometers), and ends when all vehicle components come to rest on
the Earth.
    Disposal means the return or attempt to return, purposefully, a
launch vehicle stage or component, not including a reentry vehicle,
from Earth orbit to Earth, in a controlled manner.
    Dose-response relationship means a quantitative methodology used to
assign a probability of casualty within a population group given
exposure to a toxic chemical of known or predicted concentration and
duration.
    Downrange means the distance measured along a line whose direction
is parallel to the projection of a vehicle's planned nominal velocity
vector azimuth into a horizontal plane tangent to the ellipsoidal Earth
model at the vehicle sub-vehicle point. The term downrange may also be
used to indicate direction.
    Effective casualty area means the aggregate casualty area of each
piece of debris created by a vehicle failure at a particular point on
its trajectory. The effective casualty area for each piece of debris is
a modeling construct in which the area within which 100 percent of the
population are assumed to be a casualty, and outside of which 100
percent of the population are assumed not to be a casualty.
* * * * *
    Expected casualty means the mean number of casualties predicted to
occur per flight operation if the operation were repeated many times.
* * * * *
    Explosive debris means solid propellant fragments or other pieces
of a vehicle or payload that result from breakup of the vehicle during
flight and that explode upon impact with the Earth's surface and cause
overpressure.
* * * * *
    Flight abort means the process to limit or restrict the hazards to
public health and safety, and the safety of property, presented by a
launch vehicle or reentry vehicle, including any payload, while in
flight by initiating and accomplishing a controlled ending to vehicle
flight.
    Flight abort crew means the personnel who make a flight abort
decision.
    Flight abort rules means the conditions under which a flight safety
system must abort the flight to ensure compliance with public safety
criteria.
* * * * *
    Flight hazard area means any region of land, sea, or air that must
be surveyed, publicized, controlled, or evacuated in order to protect
public health and safety and the safety of property.
    Flight safety limit means criteria to ensure that public safety is
protected from the flight of a vehicle when a flight safety system
functions properly.
    Flight safety system means a system used to implement flight abort.
A human can be a part of a flight safety system.
    Gate means the portion of a flight safety limit boundary through
which the tracking icon of a vehicle flown with a flight safety system
may pass without flight abort, provided the flight remains within
specified parameters.
    Hazard control means a preventative measure or mitigation put in
place for systems or operations to reduce the severity of a hazard or
the likelihood of the hazard occurring.
* * * * *
    Instantaneous impact point means a predicted impact point,
following thrust termination of a vehicle.
    Launch means to place or try to place a launch vehicle or reentry
vehicle and any payload or human being from Earth in a suborbital
trajectory, in Earth orbit in outer space, or otherwise in outer space,
including activities involved in the preparation of a launch vehicle or
payload for launch, when those activities take place at a launch site
in the United States.
* * * * *
    Launch or reentry system means the integrated set of subsystems,
personnel, products, and processes that, when combined together, safely
carries out a launch or reentry.
* * * * *
    Launch window means a period of time during which the flight of a
launch vehicle may be initiated.
    Liftoff means any motion of the launch vehicle with intention to
initiate flight.
    Limits of a useful mission means the trajectory data or other
parameters that describe the limits of a mission that can attain the
primary objective, including flight azimuth limits.
    Mishap means any event, or series of events associated with a
licensed or permitted activity, that meets the criteria of a Class 1,
2, 3 or 4 mishap.
    Mishap, Class 1 means any event resulting in one or more of the
following:
    (1) A fatality or serious injury (as defined in 49 CFR 830.2) as a
result of licensed or permitted activity to any person who is not
associated with the licensed or permitted activity, including ground
activities at a launch or reentry site; or
    (2) A fatality or serious injury to any space flight participant,
crew, or government astronaut.
    Mishap, Class 2 means any event, other than a Class 1 mishap,
resulting in one or more of the following:
    (1) A malfunction of a flight safety system or safety-critical
system; or
    (2) A failure of the licensee's or permittee's safety organization,
safety operations, safety procedures; or
    (3) High risk, as determined by the FAA, of causing a serious or
fatal injury to any space flight participant, crew, government
astronaut, or member of the public; or

    (4) Substantial damage, as determined by the FAA, to property not
associated with licensed or permitted activity.
    Mishap, Class 3 means any unplanned event, other than a Class 1 or
Class 2 mishap, resulting in one or more of the following:
    (1) Permanent loss of a launch or reentry vehicle during licensed
activity; or
    (2) The impact of a licensed or permitted launch or reentry
vehicle, its payload, or any component thereof outside the planned
landing site or designated hazard area.
    Mishap, Class 4 means an unplanned event, other than a Class 1,
Class 2, or Class 3 mishap, resulting in one or more of the following:
    (1) Permanent loss of a vehicle during permitted activity;
    (2) Failure to achieve mission objectives; or
    (3) Substantial damage, as determined by the FAA, to property
associated with licensed or permitted activity.
    Neighboring operations personnel means, as determined by the
Federal or licensed launch or reentry site operator, those members of
the public located within a launch or reentry site, or an adjacent
launch or reentry site, who are not associated with a specific
hazardous licensed or permitted operation currently being conducted but
are required to perform safety, security, or critical tasks at the site
and are notified of the operation.
* * * * *
    Normal flight means the flight of a properly performing vehicle
whose real-time vacuum instantaneous impact point does not deviate from
the nominal vacuum instantaneous impact point by more than the sum of
the wind effects and the three-sigma guidance and performance
deviations in the uprange, downrange, left-crossrange, or right-
crossrange directions.
    Normal trajectory means a trajectory that describes normal flight.
    Operating environment means an environment that a launch or reentry
vehicle component will experience during its lifecycle. Operating
environments include shock, vibration, thermal cycle, acceleration,
humidity, and thermal vacuum.
    Operation hazard means a hazard created by an operating environment
or by an unsafe act.
* * * * *
    Operator means a holder of a license or permit under 51 U.S.C.
Subtitle V, chapter 509.
    Orbital insertion means the point at which a vehicle achieves a
minimum 70-nautical mile perigee based on a computation that accounts
for drag.
* * * * *
    Physical containment means a launch vehicle does not have
sufficient energy for any hazards associated with its flight to reach
the public or critical assets.
* * * * *
    Probability of casualty means the likelihood that a person will
suffer a serious injury or worse, including a fatal injury, due to all
hazards from an operation at a specific location.
    Public means, for a particular licensed or permitted launch or
reentry, people and property that are not involved in supporting the
launch or reentry and includes those people and property that may be
located within the launch or reentry site, such as visitors,
individuals providing goods or services not related to launch or
reentry processing or flight, and any other operator and its personnel.
    Reenter; reentry means to return or attempt to return,
purposefully, a reentry vehicle and its payload or human being, if any,
from Earth orbit or from outer space to Earth.
* * * * *
    Reentry window means a period of time during which the reentry of a
reentry vehicle may be initiated.
* * * * *
    Safety critical means essential to safe performance or operation. A
safety-critical system, subsystem, component, condition, event,
operation, process, or item, is one whose proper recognition, control,
performance, or tolerance, is essential to ensuring public safety.
    Service life means, for a safety-critical system component, the sum
total of the component's storage life and operating life.
* * * * *
    Software function means a collection of computer code that
implements a requirement or performs an action. This includes firmware
and operating systems.
* * * * *
    State and United States means, when used in a geographical sense,
the several States, the District of Columbia, the Commonwealth of
Puerto Rico, American Samoa, the United States Virgin Islands, Guam,
and any other commonwealth, territory, or possession of the United
States.
    Sub-vehicle point means the location on an ellipsoidal Earth model
where the normal to the ellipsoid passes through the vehicle's center
of gravity.
    System hazard means a hazard associated with a system and generally
exists even when no operation is occurring.
* * * * *
    Toxic hazard area means a region on the Earth's surface where toxic
concentrations and durations may be greater than approved toxic
thresholds for acute casualty, in the event of a release during launch
or reentry.
    Tracking icon means the representation of a vehicle's instantaneous
impact point, debris footprint, or other vehicle performance metric
used during real-time tracking of the vehicle's flight.
    Uncontrolled area is an area of land not controlled by a launch or
reentry operator, a launch or reentry site operator, an adjacent site
operator, or other entity by agreement.
    Unguided suborbital launch vehicle means a suborbital rocket that
does not contain active guidance or a directional control system.
* * * * *
    Uprange means the distance measured along a line that is 180
degrees to the downrange direction.
* * * * *
    Vehicle response modes means mutually exclusive scenarios that
characterize foreseeable combinations of vehicle trajectory and debris
generation.
* * * * *
    Wind weighting safety system means equipment, procedures, analysis
and personnel functions used to determine the launcher elevation and
azimuth settings that correct for wind effects that an unguided
suborbital launch vehicle will experience during flight.
    Window closure means a period of time when launch or reentry is not
permitted in order to avoid a collision with an object in orbit. A
window closure may occur within a launch or reentry window, may delay
the start of a window, or terminate a window early.

PART 404--REGULATIONS AND LICENSING REQUIREMENTS

0
 3. The authority citation for part 404 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
4. Revise Sec.  404.5 to read as follows:

Sec.  404.5  Filing a petition for waiver.

    (a) A petition for waiver must be submitted at least 60 days before
the proposed effective date of the waiver, unless the Administrator
agrees to a different time frame in accordance with Sec.  404.15.
    (b) The petition for waiver must include:
    (1) The specific section or sections of this chapter from which the
petitioner seeks relief;

    (2) The extent of the relief sought and the reason the relief is
being sought;
    (3) The reason why granting the request for relief is in the public
interest and will not jeopardize the public health and safety, safety
of property, and national security and foreign policy interests of the
United States; and
    (4) Any additional facts, views, and data available to the
petitioner to support the waiver request.
0
5. Add Sec.  404.15 to read as follows:

Sec.  404.15  Alternative time frames.

    (a) General. Unless otherwise approved by the Administrator, an
applicant, a licensee, a permittee, or a safety element approval holder
must meet the time frames set forth in this chapter.
    (b) Request to change a time frame. A person may file a written
request to the FAA to propose an alternative time frame to any of the
time frames included in the sections listed in appendix A to this part.
The request must be--
    (1) Submitted no later than the specific time frame included in the
regulation; and
    (2) Emailed to [email protected]; or
    (3) Mailed to the Federal Aviation Administration, Associate
Administrator for Commercial Space Transportation, Room 331, 800
Independence Avenue SW, Washington, DC 20591. Attention: Alternative
Time Frame Request.
    (c) Administrator review. The Administrator will review and make a
decision or grant a request for an alternative time-frame as follows:
    (1) The FAA will conduct its review on a case-by-case basis, taking
into account the complexity of the request and whether it allows
sufficient time for the FAA to conduct its review and make the
requisite public health and safety, safety of property, and national
security and foreign policy findings; and
    (2) The FAA will provide its decision in writing.
0
6. Add appendix A to part 404 the read as follows:

Appendix A to Part 404--Alternative Time Frames

A404.1 GENERAL

    Alternative time frames. This appendix lists the sections and
corresponding paragraphs in this chapter that provide the eligible
time frames for an applicant, licensee, permittee or a safety
element approval holder, as applicable, to request an alternative
time frame.

                   Table A404.1--Eligible Time Frames
------------------------------------------------------------------------
                     49 CFR                             Paragraphs
------------------------------------------------------------------------
Sec.   404.5--Filing a petition for waiver......  (a)
Sec.   413.23--License or permit renewal........  (a)
Sec.   414.31--Safety element approval renewal..  (a)
Sec.   420.57--Notifications....................  (d)
Sec.   437.89--Preflight reporting..............  (a), (b)
Sec.   440.15--Demonstration of compliance......  (a)(1), (a)(2),
                                                   (a)(3), (a)(4)
Sec.   450.169-- Launch and Reentry Collision     (f)(1)
 Avoidance Analysis Requirements.
Sec.   450.213--Preflight reporting.............  (b), (c), (d), (e)
Sec.   450.215--Post-flight reporting...........  (a)
------------------------------------------------------------------------

PART 413--APPLICATION PROCEDURES

0
7. The authority citation for part 413 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
 8. Revise the heading for part 413 to read as set forth above.
0
9. Revise Sec.  413.1 to read as follows:

Sec.  413.1  Scope of this part.

    (a) This part explains how to apply for a license or experimental
permit. These procedures apply to all applications for obtaining a
license or permit, transferring a license, and renewing a license or
permit. In this part, the term application means either an application
in its entirety, or a portion of an application for incremental review
and determination in accordance with Sec.  450.33 of this chapter.
    (b) Use the following table to locate specific requirements:

                        Table 1 to Paragraph (b)
------------------------------------------------------------------------
                         Subject                               Part
------------------------------------------------------------------------
License to Operate a Launch Site........................             420
License to Operate a Reentry Site.......................             433
Experimental Permits....................................             437
Launch And Reentry License Requirements.................             450
------------------------------------------------------------------------

0
10. Amend Sec.  413.7 by revising the section heading and paragraph
(a)(3) to read as follows:

Sec.  413.7  Application submission.

    (a) * * *
    (3) For an application submitted by email, an applicant must send
the application as an email attachment, or as a link to a secure
server, to [email protected]. The application and the email to
which the application is attached or linked must also satisfy the
following criteria:
    (i) The email to which the application is attached or linked must
be sent from an email address controlled by the person who signed the
application or by an authorized representative of the applicant;
    (ii) The email must identify each document that is included as an
attachment or that is stored on a secure server; and
    (iii) The electronic files must be date-stamped and have version
control documentation.
* * * * *
0
 11. Amend Sec.  413.11 by revising paragraph (a) to read as follows:

Sec.  413.11  Acceptance of an application.

* * * * *
    (a) The FAA accepts the application and will initiate review; or
* * * * *

0
12. Revise Sec.  413.15 to read as follows:

Sec.  413.15  Review period.

    (a) Review period duration. Unless otherwise specified in this
chapter, the FAA reviews and makes a license or permit determination on
an application within 180 days of receiving an accepted license
application or within 120 days of receiving an accepted permit
application. The FAA will establish the time frame for any incremental
review and determination with an applicant on a case-by-case basis
during pre-application consultation.
    (b) Review period tolled. If an accepted application does not
provide sufficient information to continue or complete the reviews or
evaluations required by this chapter for a license, permit, or
incremental determination, or an issue exists that would affect a
determination, the FAA notifies the applicant, in writing, and informs
the applicant of any information required to complete the application.
If the FAA cannot review an accepted application because of lack of
information or for any other reason, the FAA will toll the review
period until the FAA receives the information it needs or the applicant
resolves the issue.
    (c) Notice. Unless applying under incremental review and
determination in accordance with Sec.  450.33 of this chapter, if the
FAA does not make a decision within 120 days of receiving an accepted
license application or within 90 days of receiving an accepted permit
application, the FAA informs the applicant, in writing, of any
outstanding information needed to complete the review, or of any issues
that would affect the decision.
0
13. Amend Sec.  413.21 by revising the section heading and paragraphs
(b) and (c) to read as follows:

Sec.  413.21  Denial of a license or permit application.

* * * * *
    (b) If the FAA has denied an application in its entirety, the
applicant may either--
    (1) Attempt to correct any deficiencies identified and ask the FAA
to reconsider the revised application. The FAA has 60 days or the
number of days remaining in the review period, whichever is greater,
within which to reconsider the decision; or
    (2) Request a hearing in accordance with part 406 of this chapter,
for the purpose of showing why the application should not be denied.
    (c) An applicant whose application is denied after reconsideration
under paragraph (b)(1) of this section may request a hearing in
accordance with paragraph (b)(2) of this section.
0
14. Revise part 414 to read as follows:

PART 414--SAFETY ELEMENT APPROVALS

Sec.
Subpart A--General
414.1 Scope.
414.3 Definitions.
414.5 Applicability.
414.7 Eligibility.
Subpart B--Application Procedures
414.9 Pre-application consultation.
414.11 Application.
414.13 Application separate from a vehicle operator license
application.
414.15 Application concurrent with vehicle operator license
application.
414.17 Confidentiality.
414.19 Processing the initial application.

414.21  Maintaining the continued accuracy of the initial application.

Subpart C--Safety Element Approval Review and Issuance
414.23 Technical criteria for reviewing a safety element approval
application.
414.25 Terms and conditions for issuing a safety element approval;
duration of a safety element approval.
414.27 Maintaining the continued accuracy of the safety element
approval application.
414.29 Safety element approval records.
414.31 Safety element approval renewal.
414.33 Safety element approval transfer.
414.35 Monitoring compliance with the terms and conditions of a
safety element approval.
414.37 Modification, suspension, or revocation of a safety element
approval.
414.39 [Reserved]
Subpart D--Appeal Procedures
414.41 Hearings in safety element approval actions.
414.43 Submissions; oral presentations in safety element approval
actions.
414.45 Administrative law judge's recommended decision in safety
element approval actions.

    Authority:  51 U.S.C. 50901-50923.

Subpart A--General

Sec.  414.1  Scope.

    This part establishes procedures for obtaining a safety element
approval and renewing and transferring an existing safety element
approval. Safety element approvals issued under this part may be used
to support the application review for one or more vehicle operator
license requests under other parts of this chapter.

Sec.  414.3  Definitions.

    For purposes of this part the following definitions apply:
    Safety element approval. A safety element approval is an FAA
document containing the FAA determination that one or more of the
safety elements listed in paragraphs (1) and (2) of this definition,
when used or employed within a defined envelope, parameter, or
situation, will not jeopardize public health and safety or safety of
property. A safety element approval may be issued independent of a
license, and it does not confer any authority to conduct activities for
which a license is required under this chapter. A safety element
approval does not relieve its holder of the duty to comply with all
applicable requirements of law or regulation that may apply to the
holder's activities.
    (1) Launch vehicle, reentry vehicle, safety system, process,
service, or any identified component thereof; or
    (2) Qualified and trained personnel, performing a process or
function related to licensed activities or vehicles.
    Safety element. A safety element is any one of the items or persons
(personnel) listed in paragraphs (1) and (2) of the definition of
``safety approval'' in this section.

Sec.  414.5  Applicability.

    This part applies to an applicant that wants to obtain a safety
element approval for any of the safety elements defined under this part
and to persons granted a safety element approval under this part. Any
person eligible under this part may apply to become the holder of a
safety element approval.

Sec.  414.7  Eligibility.

    (a) There is no citizenship requirement to obtain a safety element
approval.
    (b) You may be eligible for a safety element approval if you are--
    (1) A designer, manufacturer, or operator of a launch or reentry
vehicle or component thereof;
    (2) The designer or developer of a safety system or process; or
    (3) Personnel who perform safety critical functions in conducting a
licensed launch or reentry.
    (c) A safety element approval applicant must have sufficient
knowledge and expertise to show that the design and operation of the
safety element for which safety element approval is sought qualify for
a safety element approval.
    (d) Only the safety elements defined under this part are eligible
for a safety element approval. The applicant must consult with the FAA
before submitting an application. Unless the applicant or the FAA
requests another form of consultation, consultation is oral discussion
with the FAA about the

application process and the potential issues relevant to the FAA's
safety element approval decision.

Subpart B--Application Procedures

Sec.  414.9  Pre-application consultation.

    The applicant must consult with the FAA before submitting an
application. Unless the applicant or the FAA requests another form of
consultation, consultation is oral discussion with the FAA about the
application process and the potential issues relevant to the FAA's
safety approval decision.

Sec.  414.11  Application.

    An applicant may submit an application for a safety element
approval in one of two ways:
    (a) Separate from a vehicle operator license application in
accordance with Sec.  414.13; or
    (b) Concurrent with a vehicle operator license application in
accordance with Sec.  414.15.

Sec.  414.13  Application separate from a vehicle operator license
application.

    (a) An applicant must make an application in writing and in
English. The applicant must file the application with the Federal
Aviation Administration either by paper, by use of physical electronic
storage, or by email in the following manner:
    (1) For an application submitted on paper, an applicant must send
two copies of the application to the Federal Aviation Administration,
Associate Administrator for Commercial Space Transportation, Room 331,
800 Independence Avenue SW, Washington, DC 20591. Attention:
Application Review.
    (2) For an application submitted by use of physical electronic
storage, the applicant must either mail the application to the address
specified in paragraph (a)(1) of this section or hand-deliver the
application to an authorized FAA representative. The application and
the physical electronic storage containing the application must also
satisfy all of the following criteria:
    (i) The application must include a cover letter that is printed on
paper and signed by the person who signed the application or by an
authorized representative of the applicant;
    (ii) The cover letter must identify each document that is included
on the physical electronic storage; and
    (iii) The physical electronic storage must be in a format such that
its contents cannot be altered.
    (3) For an application submitted by email, an applicant must send
the application as an email attachment, or as a link to a secure
server, to [email protected]. The application and the email to
which the application is attached must also satisfy the following
criteria:
    (i) The email to which the application is attached must be sent
from an email address controlled by the person who signed the
application or by an authorized representative of the applicant; and
    (ii) The email must identify each document that is included as an
attachment or that is stored on a secure server; and
    (iii) The electronic files must be date-stamped and have version
control documentation.
    (b) The application must identify the following basic information:
    (1) Name and address of the applicant.
    (2) Name, address, and telephone number of any person to whom
inquiries and correspondence should be directed.
    (3) Safety element as defined under this part for which the
applicant seeks a safety element approval.
    (c) The application must contain the following technical
information:
    (1) A Statement of Conformance letter, describing the specific
criteria the applicant used to show the adequacy of the safety element
for which a safety element approval is sought, and showing how the
safety element complies with the specific criteria.
    (2) The specific operating limits for which the safety element
approval is sought.
    (3) The following as applicable:
    (i) Information and analyses required under this chapter that may
be applicable to demonstrating safe performance of the safety element
for which the safety element approval is sought.
    (ii) Engineering design and analyses that show the adequacy of the
proposed safety element for its intended use, such that the use in a
licensed launch or reentry will not jeopardize public health or safety
or the safety of property.
    (iii) Relevant manufacturing processes.
    (iv) Test and evaluation procedures.
    (v) Test results.
    (vi) Maintenance procedures.
    (vii) Personnel qualifications and training procedures.
    (d) The application must be legibly signed, dated, and certified as
true, complete, and accurate by one of the following:
    (1) For a corporation, an officer or other individual authorized to
act for the corporation in licensing or safety element approval
matters.
    (2) For a partnership or a sole proprietorship, a general partner
or proprietor, respectively.
    (3) For a joint venture, association, or other entity, an officer
or other individual duly authorized to act for the joint venture,
association, or other entity in licensing matters.
    (e) Failure to comply with any of the requirements set forth in
this section is sufficient basis for denial of a safety element
approval application.

Sec.  414.15  Application concurrent with vehicle operator license
application.

    (a) An applicant for a vehicle operator license may also identify
one or more sections of its application for which it seeks to obtain a
safety element approval concurrently with a license. An applicant
applying for a safety element approval concurrently with a license
must--
    (1) Meet the applicable requirements of part 450 of this chapter;
    (2) Provide the information required in Sec.  414.13(b)(3) and
(c)(2) and (3); and
    (3) Specify the sections of the license application that support
its application for a safety element approval.
    (b) The scope of the safety element approval will be limited to
what the application supports. The technical criteria for reviewing a
safety element submitted as part of a vehicle operator license
application are limited to the applicable requirements of part 450 of
this chapter.

Sec.  414.17  Confidentiality.

    (a) To ensure confidentiality of data or information in the
application, the applicant must--
    (1) Send a written request with the application that trade secrets
or proprietary commercial or financial data be treated as confidential,
and include in the request the specific time frame confidential
treatment is required.
    (2) Mark data or information that require confidentiality with an
identifying legend, such as ``Proprietary Information,'' ``Proprietary
Commercial Information,'' ``Trade Secret,'' or ``Confidential Treatment
Requested.'' Where this marking proves impracticable, attach a cover
sheet that contains the identifying legend to the data or information
for which confidential treatment is sought.
    (b) If the applicant requests confidential treatment for previously
submitted data or information, the FAA will honor that request to the
extent practicable in case of any prior distribution of the data or
information.
    (c) Data or information for which confidential treatment is
requested or data or information that qualifies for

exemption under 5 U.S.C. 552(b)(4) will not be disclosed to the public
unless the Associate Administrator determines that withholding the data
or information is contrary to the public or national interest.

Sec.  414.19  Processing the initial application.

    (a) The FAA will initially screen an application to determine if
the application is complete enough for the FAA to start its review.
    (b) After completing the initial screening, the FAA will inform the
applicant in writing of one of the following:
    (1) The FAA accepts the application and will begin the reviews or
evaluations required for a safety element approval determination under
this part.
    (2) The FAA rejects the application because it is incomplete or
indefinite making initiation of the reviews or evaluations required for
a safety element approval determination under this part inappropriate.
    (c) The written notice will state the reason(s) for rejection and
corrective actions necessary for the application to be accepted. The
FAA may return a rejected application to the applicant or may hold it
until the applicant provides more information.
    (d) The applicant may withdraw, amend, or supplement an application
any time before the FAA makes a final determination on the safety
element approval application by making a written request to the
Associate Administrator. If the applicant amends or supplements the
initial application, the revised application must meet all the
applicable requirements under this part.

Sec.  414.21  Maintaining the continued accuracy of the initial
application.

    The applicant is responsible for the continuing accuracy and
completeness of information provided to the FAA as part of the safety
element approval application. If at any time after submitting the
application, circumstances occur that cause the information to no
longer be accurate and complete in any material respect, the applicant
must submit a written statement to the Associate Administrator
explaining the circumstances and providing the new or corrected
information. The revised application must meet all requirements under
Sec.  414.13 or Sec.  414.15.

Subpart C--Safety Element Approval Review and Issuance

Sec.  414.23  Technical criteria for reviewing a safety element
approval application.

    The FAA will determine whether a safety element is eligible for and
may be issued a safety approval. We will base our determination on
performance-based criteria, against which we may assess the effect on
public health and safety and on safety of property, in the following
hierarchy:
    (a) FAA or other appropriate Federal regulations.
    (b) Government-developed or adopted standards.
    (c) Industry consensus performance-based criteria or standard.
    (d) Applicant-developed criteria. Applicant-developed criteria are
performance standards customized by the manufacturer that intends to
produce the system, system component, or part. The applicant-developed
criteria must define--
    (1) Design and minimum performance;
    (2) Quality assurance system requirements;
    (3) Production acceptance test specifications; and
    (4) Continued operational safety monitoring system characteristics.

Sec.  414.25  Terms and conditions for issuing a safety element
approval; duration of a safety approval.

    (a) The FAA will issue a safety element approval to an applicant
that meets all the requirements under this part.
    (b) The scope of the safety element approval will be limited by the
scope of the safety demonstration contained in the application on which
the FAA based the decision to grant the safety element approval.
    (c) The FAA will determine specific terms and conditions of a
safety element approval individually, limiting the safety element
approval to the scope for which it was approved. The terms and
conditions will include reporting requirements tailored to the
individual safety element approval.
    (d) A safety element approval is valid for five years and may be
renewed.

Sec.  414.27  Maintaining the continued accuracy of the safety element
approval application.

    (a) The holder of a safety element approval must ensure the
continued accuracy and completeness of representations contained in the
safety element approval application, on which the approval was issued,
for the entire term of the safety element approval.
    (b) If any representation contained in the application that is
material to public health and safety or safety of property ceases to be
accurate and complete, the safety element approval holder must prepare
and submit a revised application according to Sec.  414.13 or Sec.
414.15. The safety element approval holder must point out any part of
the safety element approval or the associated application that would be
changed or affected by a proposed modification. The FAA will review and
make a determination on the revised application under the terms of this
part.

Sec.  414.29  Safety element approval records.

    The holder of a safety element approval must maintain all records
necessary to verify that the holder's activities are consistent with
the representations contained in the application for which the approval
was issued for the duration of the safety element approval plus one
year.

Sec.  414.31  Safety element approval renewal.

    (a) Eligibility. A holder of a safety element approval may apply to
renew it by sending the FAA a written application at least 90 days
before the expiration date of the approval, unless the Administrator
agrees to a different time frame in accordance with Sec.  404.15 of
this chapter.
    (b) Application. (1) A safety element approval renewal application
must meet all the requirements under Sec.  414.13 or Sec.  414.15.
    (2) The application may incorporate by reference information
provided as part of the application for the expiring safety element
approval or any modification to that approval.
    (3) Any proposed changes in the conduct of a safety element for
which the FAA has issued a safety element approval must be described
and must include any added information necessary to support the fitness
of the proposed changes to meet the criteria upon which the FAA
evaluated the safety element approval application.
    (c) Review of application. The FAA conducts the reviews required
under this part to determine whether the safety element approval may be
renewed. We may incorporate by reference any findings that are part of
the record for the expiring safety element approval.
    (d) Grant of safety element approval renewal. If the FAA makes a
favorable safety element approval determination, the FAA issues an
order that amends the expiration date of the safety element approval or
issues a new safety element approval. The FAA may impose added or
revised terms and conditions

necessary to protect public health and safety and the safety of
property.
    (e) Written notice. The FAA will provide written notice to the
applicant of our determination on the safety element approval renewal
request.
    (f) Denial of a safety element approval renewal. If the FAA denies
the renewal application, the applicant may correct any deficiency the
FAA identified and request a reconsideration of the revised
application. The applicant also has the right to appeal a denial as set
forth in subpart D of this part.

Sec.  414.33  Safety element approval transfer.

    (a) Only the FAA may approve a transfer of a safety element
approval.
    (b) Either the holder of a safety element approval or the
prospective transferee may request a safety element approval transfer.
    (c) Both the holder and prospective transferee must agree to the
transfer.
    (d) The person requesting the transfer must submit a safety element
approval application according to Sec.  414.13 or Sec.  414.15, must
meet the applicable requirements of this part, and may incorporate by
reference relevant portions of the initial application.
    (e) The FAA will approve a transfer of a safety element approval
only after all the approvals and determinations required under this
chapter for a safety element approval have been met. In conducting
reviews and issuing approvals and determinations, the FAA may
incorporate by reference any findings made part of the record to
support the initial safety element approval determination. The FAA may
modify the terms and conditions of a safety element approval to reflect
any changes necessary because of a safety element approval transfer.
    (f) The FAA will provide written notice to the person requesting
the safety element approval transfer of our determination.

Sec.  414.35  Monitoring compliance with the terms and conditions of a
safety element approval.

    Each holder of a safety element approval must allow access by, and
cooperate with, Federal officers or employees or other individuals
authorized by the Associate Administrator to inspect manufacturing,
production, testing, or assembly performed by a holder of a safety
element approval or its contractor. The FAA may also inspect a safety
element approval process or service, including training programs and
personnel qualifications.

Sec.  414.37  Modification, suspension, or revocation of a safety
element approval.

    (a) The safety element approval holder. The safety element approval
holder may submit an application to the FAA to modify the terms and
conditions of the holder's safety element approval. The application
must meet all the applicable requirements under this part. The FAA will
review and make a determination on the application using the same
procedures under this part applicable to an initial safety element
approval application. If the FAA denies the request to modify a safety
element approval, the holder may correct any deficiency the FAA
identified and request reconsideration. The holder also has the right
to appeal a denial as set forth in subpart D of this part.
    (b) The FAA. If the FAA finds it is in the interest of public
health and safety, safety of property, or if the safety element
approval holder fails to comply with any applicable requirements of
this part, any terms and conditions of the safety approval, or any
other applicable requirement, the FAA may--
    (1) Modify the terms and conditions of the safety element approval;
or
    (2) Suspend or revoke the safety element approval.
    (c) Effective date. Unless otherwise stated by the FAA, any
modification, suspension, or revocation of a safety element approval
under paragraph (b) of this section--
    (1) Takes effect immediately; and
    (2) Continues in effect during any reconsideration or appeal of
such action under this part.
    (d) Notification and Right to Appeal. If the FAA determines it is
necessary to modify, suspend, or revoke a safety element approval, we
will notify the safety element approval holder in writing. If the
holder disagrees with the FAA's determination, the holder may correct
any deficiency the FAA identified and request a reconsideration of the
determination. The applicant also has the right to appeal the
determination as set forth in subpart D of this part.

Sec.  414.39  [Reserved]

Subpart D--Appeal Procedures

Sec.  414.41  Hearings in safety element approval actions.

    (a) The FAA will give the safety element approval applicant or
holder, as appropriate, written notice stating the reason for issuing a
denial or for modifying, suspending, or revoking a safety element
approval under this part.
    (b) A safety element approval applicant or holder is entitled to a
determination on the record after an opportunity for a hearing.

Sec.  414.43  Submissions; oral presentations in safety element
approval actions.

    (a) Determinations in safety element approval actions under this
part will be made on the basis of written submissions unless the
administrative law judge, on petition or on his or her own initiative,
determines that an oral presentation is required.
    (b) Submissions must include a detailed exposition of the evidence
or arguments supporting the petition.
    (c) Petitions must be filed as soon as practicable, but in no event
more than 30 days after issuance of decision or finding under Sec.
414.37.

Sec.  414.45  Administrative law judge's recommended decision in safety
element approval actions.

    (a) The Associate Administrator, who will make the final decision
on the matter at issue, will review the recommended decision of the
administrative law judge. The Associate Administrator will make such
final decision within 30 days of issuance of the recommended decision.
    (b) The authority and responsibility to review and decide rests
solely with the Associate Administrator and may not be delegated.

PART 415 [REMOVE AND RESERVE]

0
15. Remove and reserve part 415.

PART 417 [REMOVE AND RESERVE]

0
16. Remove and reserve part 417.

PART 420--LICENSE TO OPERATE A LAUNCH SITE

0
17. The authority citation for part 420 continues to read as follows:

    Authority: 51 U.S.C. 50901-50923.

Sec.  420.5  [Amended]

0
18. Amend Sec.  420.5 by removing the definitions for ``Instantaneous
impact point,'' ``Launch site accident,'' and ``Public.''
0
 19. Amend Sec.  420.15 by revising paragraph (b) to read as follows:

Sec.  420.15  Information requirements.

* * * * *
    (b) Environmental. The FAA is responsible for complying with the
procedures and policies of the National Environmental Policy Act (NEPA)
and other applicable environmental laws, regulations, and Executive
Orders prior to issuing a launch site license. An applicant must
provide the FAA with information needed to comply with such
requirements. The FAA will

consider and document the potential environmental effects associated
with issuing a launch site license.
    (1) Environmental Impact Statement or Environmental Assessment. An
applicant must--
    (i) Prepare an Environmental Assessment with FAA oversight;
    (ii) Assume financial responsibility for preparation of an
Environmental Impact Statement by an FAA-selected and -managed
consultant contractor; or
    (iii) Submit a written re-evaluation of a previously submitted
Environmental Assessment or Environmental Impact Statement when
requested by the FAA.
    (2) Categorical exclusion. An applicant may request a categorical
exclusion determination from the FAA by submitting the request and
supporting rationale.
    (3) Environmental information. An application must include an
approved FAA Environmental Assessment, Environmental Impact Statement,
categorical exclusion determination, or written re-evaluation covering
all planned licensed activities in compliance with NEPA and the Council
on Environmental Quality Regulations for Implementing the Procedural
Provisions of NEPA.
* * * * *
0
20. Revise Sec.  420.51 to read as follows:

Sec.  420.51  Responsibilities--general.

    A licensee must operate its launch site in accordance with the
representations in its application.
0
21. Amend Sec.  420.57 by revising paragraph (d) to read as follows:

Sec.  420.57  Notifications.

* * * * *
    (d) At least 2 days prior to flight of a launch vehicle, unless the
Administrator agrees to a different time frame in accordance with Sec.
404.15 of this chapter, the licensee must notify local officials and
all owners of land adjacent to the launch site of the flight schedule.
0
22. Revise Sec.  420.59 to read as follows:

Sec.  420.59  Mishap plan.

    (a) A licensee must submit a mishap response plan that meets the
requirements of Sec.  450.173 of this chapter.
    (b) A launch site operator's mishap plan must also contain--
    (1) Procedures for participating in an investigation of a launch
mishap for launches launched from the launch site; and
    (2) Require the licensee to cooperate with FAA or National
Transportation Safety Board (NTSB) investigations of a mishap for
launches launched from the launch site.
    (c) Emergency response and investigation procedures developed in
accordance with 29 CFR 1910.119 and 40 CFR part 68 will satisfy the
requirements of Sec.  450.173(d) and (e) to the extent that they
include the elements required by Sec.  450.173(d) and (e).

PART 431 [REMOVE AND RESERVE]

0
23. Remove and reserve part 431.

PART 433--LICENSE TO OPERATE A REENTRY SITE

0
24. The authority citation for part 433 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
25. Revise Sec.  433.7 to read as follows:

Sec.  433.7  Environmental.

    (a) General. The FAA is responsible for complying with the
procedures and policies of the National Environmental Policy Act (NEPA)
and other applicable environmental laws, regulations, and Executive
Orders prior to issuing a reentry site license. An applicant must
provide the FAA with information needed to comply with such
requirements. The FAA will consider and document the potential
environmental effects associated with issuing a license for a reentry
site.
    (b) Environmental Impact Statement or Environmental Assessment. An
applicant must--
    (1) Prepare an Environmental Assessment with FAA oversight;
    (2) Assume financial responsibility for preparation of an
Environmental Impact Statement by an FAA-selected and -managed
consultant contractor; or
    (3) Submit a written re-evaluation of a previously submitted
Environmental Assessment or Environmental Impact Statement when
requested by the FAA.
    (c) Categorical exclusion. An applicant may request a categorical
exclusion determination from the FAA by submitting the request and
supporting rationale.
    (d) Environmental information. An application must include an
approved FAA Environmental Assessment, Environmental Impact Statement,
categorical exclusion determination, or written re-evaluation covering
all planned licensed activities in compliance with NEPA and the Council
on Environmental Quality Regulations for Implementing the Procedural
Provisions of NEPA.

Sec.  433.9  [Removed and Reserved]

0
26. Remove and reserve Sec.  433.9.

PART 435 [REMOVED AND RESERVED]

0
27. Remove and reserve part 435.

PART 437--EXPERIMENTAL PERMITS

0
28. The authority citation for part 437 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.

Sec.  437.3  [Amended]

0
29. Amend Sec.  437.3 by removing the definition for ``Anomaly.''
0
30. Amend Sec.  437.21 by revising paragraphs (b) and (c) to read as
follows:

Sec.  437.21  General.

* * * * *
    (b) Other regulations--(1) Environmental--(i) General. The FAA is
responsible for complying with the procedures and policies of the
National Environmental Policy Act (NEPA) and other applicable
environmental laws, regulations, and Executive Orders to consider and
document the potential environmental effects associated with proposed
reusable suborbital rocket launches or reentries. An applicant must
provide the FAA with information needed to comply with such
requirements. The FAA will consider and document the potential
environmental effects associated with proposed reusable suborbital
rocket launches or reentries.
    (ii) Environmental Impact Statement or Environmental Assessment. An
applicant must--
    (A) Prepare an Environmental Assessment with FAA oversight;
    (B) Assume financial responsibility for preparation of an
Environmental Impact Statement by an FAA-selected and -managed
consultant contractor; or
    (C) Submit a written re-evaluation of a previously submitted
Environmental Assessment or Environmental Impact Statement when
requested by the FAA.
    (iii) Categorical exclusion. An applicant may request a categorical
exclusion determination from the FAA by submitting the request and
supporting rationale.
    (iv) Information requirements. An application must include an
approved FAA Environmental Assessment, Environmental Impact Statement,
categorical exclusion determination, or written re-evaluation covering
all planned licensed activities in compliance with NEPA and the Council
on Environmental Quality Regulations for Implementing the Procedural
Provisions of NEPA.
    (2) Financial responsibility. An applicant must provide the
information required by part 3 of appendix A of part 440 of this
chapter for the FAA to

conduct a maximum probable loss analysis.
    (3) Human space flight. An applicant proposing launch or reentry
with flight crew or a space flight participant on board a reusable
suborbital rocket must demonstrate compliance with Sec. Sec.  460.5,
460.7, 460.11, 460.13, 460.15, 460.17, 460.51 and 460.53 of this
subchapter.
    (c) Use of a safety element approval. If an applicant proposes to
use any reusable suborbital rocket, safety system, process, service, or
personnel for which the FAA has issued a safety element approval under
part 414 of this chapter, the FAA will not reevaluate that safety
element to the extent its use is within its approved envelope. As part
of the application process, the FAA will evaluate the integration of
that safety element into vehicle systems or operations.
* * * * *
0
31. Revise Sec.  437.41 to read as follows:

Sec.  437.41  Mishap plan.

    An applicant must submit a mishap plan that meets the requirements
of Sec.  450.173 of this chapter.
0
32. Revise Sec.  437.65 to read as follows:

Sec.  437.65  Collision avoidance analysis.

    For a permitted flight with a planned maximum altitude greater than
150 kilometers, a permittee must obtain a collision avoidance analysis
in accordance with Sec.  450.169 of this chapter.

Sec.  437.75  [Removed and Reserved]

0
33. Remove and reserve Sec.  437.75.
0
34. Amend Sec.  437.89 by:
0
a. Revising paragraph (a) introductory text;
0
b. In paragraphs (a)(1) through (3), removing the comma at the end of
the paragraphs and adding a semicolon in its place; and
0
c. Revise paragraph (b).
    The revisions read as follows:

Sec.  437.89  Pre-flight reporting.

    (a) Not later than 30 days before each flight or series of flights
conducted under an experimental permit, unless the Administrator agrees
to a different time frame in accordance with Sec.  404.15 of this
chapter, a permittee must provide the FAA with the following
information:
* * * * *
    (b) Not later than 15 days before each permitted flight planned to
reach greater than 150 km altitude, unless the Administrator agrees to
a different time frame in accordance with Sec.  404.15, a of this
chapter permittee must provide the FAA its planned trajectory for a
collision avoidance analysis.

PART 440--FINANCIAL RESPONSIBILITY

0
35. The authority citation for part 440 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
36. Amend Sec.  440.3 by revising the definition for ``Maximum probable
loss'' to read as follows:

Sec.  440.3  Definitions.

* * * * *
    Maximum probable loss (MPL) means the greatest dollar amount of
loss for bodily injury or property damage that is reasonably expected
to result from a licensed or permitted activity:
    (1) Losses to third parties, excluding Government personnel and
other launch or reentry participants' employees involved in licensed or
permitted activities and neighboring operations personnel, that are
reasonably expected to result from a licensed or permitted activity are
those that have a probability of occurrence of no less than one in ten
million.
    (2) Losses to Government property and Government personnel involved
in licensed or permitted activities and neighboring operations
personnel that are reasonably expected to result from licensed or
permitted activities are those that have a probability of occurrence of
no less than one in one hundred thousand.
* * * * *
0
37. Amend Sec.  440.15 by revising paragraphs (a)(1) through (4) to
read as follows:

Sec.  440.15  Demonstration of compliance.

    (a) * * *
    (1) All reciprocal waiver of claims agreements required under Sec.
440.17(c) must be submitted at least 30 days before the start of any
licensed or permitted activity involving a customer, crew member, or
space flight participant; unless the Administrator agrees to a
different time frame in accordance with Sec.  404.15 of this chapter;
    (2) Evidence of insurance must be submitted at least 30 days before
commencement of any licensed launch or permitted activity, and for
licensed reentry no less than 30 days, before commencement of launch
activities involving the reentry licensee, unless the Administrator
agrees to a different time frame in accordance with Sec.  404.15 of
this chapter;
    (3) Evidence of financial responsibility in a form other than
insurance, as provided under Sec.  440.9(f) must be submitted at least
60 days before commencement of a licensed or permitted activity, unless
the Administrator agrees to a different time frame in accordance with
Sec.  404.15 of this chapter; and
    (4) Evidence of renewal of insurance or other form of financial
responsibility must be submitted at least 30 days in advance of its
expiration date, unless the Administrator agrees to a different time
frame in accordance with Sec.  404.15 of this chapter.
* * * * *
0
38. Add part 450 to read as follows:

PART 450--LAUNCH AND REENTRY LICENSE REQUIREMENTS

Sec.
Subpart A--General Information
450.1 Applicability.
450.3 Scope of a vehicle operator license.
450.5 Issuance of a vehicle operator license.
450.7 Duration of a vehicle operator license.
450.9 Additional license terms and conditions.
450.11 Transfer of a vehicle operator license.
450.13 Rights not conferred by a vehicle operator license.
Subpart B--Requirements to Obtain a Vehicle Operator License
450.31 General.
450.33 Incremental review and determinations.
450.35 Accepted means of compliance.
450.37 Equivalent level of safety.
450.39 Use of safety element approval.
450.41 Policy review and approval.
450.43 Payload review and determination.
450.45 Safety review and approval.
450.47 Environmental review.
Subpart C--Safety Requirements

Public Safety Criteria

450.101 Public safety criteria.

System Safety Program

450.103 System safety program.

Preliminary Safety Assessment for Flight and Hazard Control Strategies

450.105 Preliminary safety assessment for flight.
450.107 Hazard control strategies.

Flight Hazard Analyses for Hardware and Software

450.109 Flight hazard analysis.
450.111 Computing systems and software.

Flight Safety Analyses

450.113 Flight safety analysis requirements--scope and
applicability.
450.115 Flight safety analysis methods.
450.117 Trajectory analysis for normal flight.
450.119 Trajectory analysis for malfunction flight.
450.121 Debris analysis.
450.123 Flight safety limits analysis.
450.125 Gate analysis.
450.127 Data loss Flight time and planned safe flight state
analyses.

450.129 Time delay analysis.
450.131 Probability of failure analysis.
450.133 Flight hazard area analysis.
450.135 Debris risk analysis.
450.137 Far-field overpressure blast effects analysis.
450.139 Toxic hazards for flight.
450.141 Wind weighting for the flight of an unguided suborbital
launch vehicle.

Prescribed Hazard Controls

450.143 Safety-critical system design, test, and documentation.
450.145 Flight safety system.
450.147 Agreements.
450.149 Safety-critical personnel qualifications.
450.151 Work shift and rest requirements.
450.153 Radio frequency management.
450.155 Readiness.
450.157 Communications.
450.159 Preflight procedures.
450.161 Surveillance and publication of hazard areas.
450.163 Lightning hazard mitigation.
450.165 Flight safety rules.
450.167 Tracking.
450.169 Launch and reentry collision avoidance analysis
requirements.
450.171 Safety at end of launch.
450.173 Mishap plan--reporting, response, and investigation
requirements.
450.175 Test-induced damage.
450.177 Unique Policies, requirements, and practices.

Ground Safety

450.179 Ground safety--general.
450.181 Coordination with a site operator.
450.183 Explosive site plan.
450.185 Ground hazard analysis.
450.187 Toxic hazards mitigation for ground operations.
450.189 Ground safety prescribed hazard controls.
Subpart D--Terms and Conditions of a Vehicle Operator License.
450.201 Public safety responsibility.
450.203 Compliance with license.
450.205 Financial responsibility requirements.
450.207 Human Spaceflight Requirements.
450.209 Compliance monitoring.
450.211 Continuing accuracy of license application; application for
modification of license.
450.213 Preflight reporting.
450.215 Post-flight reporting.
450.217 Registration of space objects.
450.219 Records.
Appendix A to Part 450--Collision Analysis Worksheet

    Authority:  51 U.S.C. 50901-50923.

Subpart A--General Information

Sec.  450.1  Applicability.

    (a) General. This part prescribes requirements for obtaining and
maintaining a license to launch, reenter, or both launch and reenter, a
launch or reentry vehicle.
    (b) Grandfathering. Except for Sec. Sec.  450.169 and 450.101(a)(4)
and (b)(4), this part does not apply to any launch or reentry that an
operator elects to conduct pursuant to a license issued by the FAA or
an application accepted by the FAA no later than [EFFECTIVE DATE OF
FINAL RULE]. The Administrator will determine the applicability of this
part to an application for a license modification submitted after
[EFFECTIVE DATE OF FINAL RULE] on a case-by-case basis.

Sec.  450.3  Scope of a vehicle operator license.

    (a) A vehicle operator license authorizes a licensee to conduct one
or more launches or reentries using the same vehicle or family of
vehicles. A vehicle operator license identifies the scope of
authorization as defined in paragraphs (b) and (c) of this section or
as agreed to by the Administrator.
    (b) A vehicle operator license authorizes launch, which includes
the flight of a launch vehicle and pre- and post-flight ground
operations as follows:
    (1) Launch begins when hazardous preflight ground operations
commence at a U.S. launch site that pose a threat to the public. Unless
a later point is agreed to by the Administrator, hazardous preflight
ground operations commence when a launch vehicle or its major
components arrive at a U.S. launch site.
    (2) At a non-U.S. launch site, launch begins at ignition or at the
first movement that initiates flight, whichever occurs earlier.
    (3) Launch ends when any of the following events occur:
    (i) For an orbital launch of a vehicle without a reentry of the
vehicle, launch ends after the licensee's last exercise of control over
its vehicle on orbit, after vehicle stage impact on Earth, after
activities necessary to return the vehicle or stage to a safe condition
on the ground after landing, or after activities necessary to return
the site to a safe condition, whichever occurs later;
    (ii) For an orbital launch of a vehicle with a reentry of the
vehicle, launch ends after deployment of all payloads, upon completion
of the vehicle's first steady-state orbit if there is no payload, or
after activities necessary to return the site to a safe condition,
whichever occurs later;
    (iii) For a suborbital launch that includes a reentry, launch ends
after reaching apogee; or
    (iv) For a suborbital launch that does not include a reentry,
launch ends after the vehicle or vehicle component impact on Earth,
after activities necessary to return the vehicle or vehicle component
to a safe condition on the ground after landing, or after activities
necessary to return the site to a safe condition, whichever occurs
later.
    (c) A vehicle operator's license authorizes reentry, which includes
activities conducted in Earth orbit or outer space to determine reentry
readiness and that are critical to ensuring public health and safety
and the safety of property during reentry flight. Reentry also includes
activities necessary to return the reentry vehicle to a safe condition
on the ground after landing.

Sec.  450.5  Issuance of a vehicle operator license.

    (a) The FAA issues a vehicle operator license to an applicant who
has obtained all approvals and determinations required under this part
for a license.
    (b) A vehicle operator license authorizes a licensee to conduct
launches or reentries, in accordance with the representations contained
in the licensee's application, with subparts C and D of this part, and
subject to the licensee's compliance with terms and conditions
contained in license orders accompanying the license, including
financial responsibility requirements.

Sec.  450.7  Duration of a vehicle operator license.

    A vehicle operator license is valid for the period of time
determined by the Administrator as necessary to conduct the licensed
activity but may not exceed 5 years from the issuance date.

Sec.  450.9  Additional license terms and conditions.

    The FAA may modify a vehicle operator license at any time by
modifying or adding license terms and conditions to ensure compliance
with the Act (as defined in Sec.  401.5 of this chapter) and its
implementing regulations in this chapter.

Sec.  450.11  Transfer of a vehicle operator license.

    (a) Only the FAA may transfer a vehicle operator license.
    (b) An applicant for transfer of a vehicle operator license must
submit a license application in accordance with part 413 of this
chapter and must meet the requirements of part 450 of this chapter. The
FAA will transfer a license to an applicant that has obtained all of
the approvals and determinations required under this part for a
license. In conducting its reviews and issuing approvals and
determinations, the FAA may incorporate by reference any findings made
part of the record to support the initial licensing determination. The
FAA may modify a

license to reflect any changes necessary as a result of a license
transfer.

Sec.  450.13  Rights not conferred by a vehicle operator license.

    Issuance of a vehicle operator license does not relieve a licensee
of its obligation to comply with all applicable requirements of law or
regulation that may apply to its activities, nor does issuance confer
any proprietary, property or exclusive right in the use of any Federal
launch range or related facilities, airspace, or outer space.

Subpart B--Requirements to Obtain a Vehicle Operator License

Sec.  450.31  General.

    (a) To obtain a vehicle operator license, an applicant must--
    (1) Submit a license application in accordance with the procedures
in part 413 of this chapter;
    (2) Obtain a policy approval from the Administrator in accordance
with Sec.  450.41;
    (3) Obtain a favorable payload determination from the Administrator
in accordance with Sec.  450.43;
    (4) Obtain a safety approval from the Administrator in accordance
with Sec.  450.45;
    (5) Satisfy the environmental review requirements of Sec.  450.47;
and
    (6) Provide the information required by appendix A of part 440 of
this chapter for the Administrator to conduct a maximum probable loss
analysis for the applicable licensed operation.
    (b) An applicant may apply for the approvals and determinations in
paragraphs (a)(2) through (6) of this section separately or all
together in one complete application, using the application procedures
contained in part 413 of this chapter.
    (c) An applicant may also apply for a safety approval in an
incremental manner, in accordance with Sec.  450.33.
    (d) An applicant may reference materials previously provided as
part of a license application in order to meet the application
requirements of this part.

Sec.  450.33  Incremental review and determinations.

    An applicant may submit its application for a safety review
incrementally using an approach approved by the Administrator.
    (a) An applicant must identify to the Administrator, prior to
submitting an application, whether it will submit an incremental
application for any approval or determination.
    (b) An applicant using an incremental approach must have the
approach approved by the Administrator prior to submitting an
application.
    (c) The Administrator may make incremental determinations as part
of this review process.

Sec.  450.35  Accepted means of compliance.

    (a) An applicant must demonstrate compliance with applicable
sections of this part using a means of compliance accepted by the
Administrator. These applicable sections specify that only an accepted
means of compliance can be used to demonstrate compliance.
    (b) The FAA will provide public notice of each means of compliance
that the Administrator has accepted.
    (c) An applicant requesting acceptance of an alternative means of
compliance must submit the alternative means of compliance to the FAA
in a form and manner acceptable to the Administrator.

Sec.  450.37  Equivalent level of safety.

    (a) An applicant must demonstrate compliance with each requirement
of this part, unless the applicant clearly and convincingly
demonstrates that an alternative approach provides an equivalent level
of safety to the requirement of this part.
    (b) Paragraph (a) of this section does not apply to the
requirements of Sec.  450.101.

 Sec.  450.39   Use of safety element approval.

    If an applicant proposes to use any vehicle, safety system,
process, service, or personnel for which the FAA has issued a safety
element approval under part 414 of this chapter, the FAA will not
reevaluate that safety element during a license application evaluation
to the extent its use is within its approved envelope.

Sec.  450.41  Policy review and approval.

    (a) General. The FAA issues a policy approval to an applicant
unless the FAA determines that a proposed launch or reentry would
jeopardize U.S. national security or foreign policy interests, or
international obligations of the United States.
    (b) Interagency consultation. (1) The FAA consults with the
Department of Defense to determine whether a license application
presents any issues affecting U.S. national security.
    (2) The FAA consults with the Department of State to determine
whether a license application presents any issues affecting U.S.
foreign policy interests or international obligations.
    (3) The FAA consults with other Federal agencies, including the
National Aeronautics and Space Administration, authorized to address
issues identified under paragraph (a) of this section, associated with
an applicant's proposal.
    (c) Issues during policy review. The FAA will advise an applicant,
in writing, of any issue raised during a policy review that would
impede issuance of a policy approval. The applicant may respond, in
writing, or amend its license application as required by Sec.  413.17
of this chapter.
    (d) Denial of policy approval. The FAA notifies an applicant, in
writing, if it has denied policy approval for a license application.
The notice states the reasons for the FAA's determination. The
applicant may respond in writing to the reasons for the determination
and request reconsideration in accordance with Sec.  413.21 of this
chapter.
    (e) Application requirements for policy review. In its license
application, an applicant must--
    (1) Identify the model, type, and configuration of any vehicle
proposed for launch or reentry by the applicant;
    (2) Describe the vehicle by characteristics that include individual
stages, their dimensions, type and amounts of all propellants, and
maximum thrust;
    (3) Identify foreign ownership of the applicant as follows:
    (i) For a sole proprietorship or partnership, identify all foreign
ownership;
    (ii) For a corporation, identify any foreign ownership interests of
10 percent or more; and
    (iii) For a joint venture, association, or other entity, identify
any participating foreign entities; and
    (4) Identify proposed vehicle flight profile, including:
    (i) Launch or reentry site, including any contingency abort
locations;
    (ii) Flight azimuths, trajectories, and associated ground tracks
and instantaneous impact points for the duration of the licensed
activity, including any contingency abort profiles;
    (iii) Sequence of planned events or maneuvers during flight;
    (iv) Normal impact or landing areas for all mission hardware; and
    (v) For each orbital mission, the range of intermediate and final
orbits of each vehicle upper stage and their estimated orbital
lifetimes.

Sec.  450.43  Payload review and determination.

    (a) General. The FAA issues a favorable payload determination for a
launch or reentry to a license applicant or payload owner or operator
if--
    (1) The applicant, payload owner, or payload operator has obtained
all required licenses, authorizations, and permits; and

    (2) Its launch or reentry would not jeopardize public health and
safety, safety of property, U.S. national security or foreign policy
interests, or international obligations of the United States.
    (b) Relationship to other executive agencies. The FAA does not make
a determination under paragraph (a)(2) of this section for--
    (1) Those aspects of payloads that are subject to regulation by the
Federal Communications Commission or the Department of Commerce; or
    (2) Payloads owned or operated by the U.S. Government.
    (c) Classes of payloads. The FAA may review and issue findings
regarding a proposed class of payload, including communications, remote
sensing, or navigation. However, prior to a launch or reentry, each
payload is subject to verification by the FAA that its launch or
reentry would not jeopardize public health and safety, safety of
property, U.S. national security or foreign policy interests, or
international obligations of the United States.
    (d) Payload owner or payload operator may apply. In addition to a
launch or reentry operator, a payload owner or payload operator may
request a payload review and determination.
    (e) Interagency consultation. The FAA consults with other agencies
as follows:
    (1) The Department of Defense to determine whether launch or
reentry of a proposed payload or payload class would present any issues
affecting U.S. national security;
    (2) The Department of State to determine whether launch or reentry
of a proposed payload or payload class would present any issues
affecting U.S. foreign policy interests or international obligations;
or
    (3) Other Federal agencies, including the National Aeronautics and
Space Administration, authorized to address issues of public health and
safety, safety of property, U.S. national security or foreign policy
interests, or international obligations of the United States,
associated with the launch or reentry of a proposed payload or payload
class.
    (f) Issues during payload review. The FAA will advise a person
requesting a payload determination, in writing, of any issue raised
during a payload review that would impede issuance of a license to
launch or reenter that payload or payload class. The person requesting
payload review may respond, in writing, or amend its application as
required by Sec.  413.17 of this chapter.
    (g) Denial of a payload determination. The FAA notifies an
applicant, in writing, if it has denied a favorable payload
determination. The notice states the reasons for the FAA's
determination. The applicant may respond in writing to the reasons for
the determination and request reconsideration in accordance with Sec.
413.21 of this chapter.
    (h) Incorporation of payload determination in license application.
A favorable payload determination issued for a payload or class of
payload may be included by a license applicant as part of its
application. However, any change in information provided under
paragraph (i) of this section must be reported in accordance with Sec.
413.17 of this chapter. The FAA determines whether a favorable payload
determination remains valid in light of reported changes and may
conduct an additional payload review.
    (i) Application requirements. A person requesting review of a
particular payload or payload class must identify the following:
    (1) For launch of a payload:
    (i) Payload name or class, and function;
    (ii) Description, including physical dimensions, weight,
composition, and any hosted payloads;
    (iii) Payload owner and payload operator, if different from the
person requesting payload review and determination,
    (iv) Any foreign ownership of the payload or payload operator, as
specified in Sec.  450.41(e)(3);
    (v) Hazardous materials as defined in Sec.  401.5 of this chapter,
radioactive materials, and the amounts of each;
    (vi) Explosive potential of payload materials, alone and in
combination with other materials found on the payload;
    (vii) For orbital launches, parameters for parking, transfer and
final orbits, and approximate transit times to final orbit;
    (viii) Delivery point in flight at which the payload will no longer
be under the licensee's control;
    (ix) Intended operations during the lifetime of the payload,
including anticipated life span and any planned disposal;
    (x) Any encryption associated with data storage on the payload and
transmissions to or from the payload; and
    (xi) Any other information necessary to make a determination based
on public health and safety, safety of property, U.S. national security
or foreign policy interests, or international obligations of the United
States; or
    (2) For reentry of a payload:
    (i) Payload name or class and function;
    (ii) Physical characteristics, dimensions, and weight of the
payload;
    (iii) Payload owner and payload operator, if different from the
person requesting the payload review and determination;
    (iv) Type, amount, and container of hazardous materials and
radioactive materials in the payload;
    (v) Explosive potential of payload materials, alone and in
combination with other materials found on the payload or reentry
vehicle during reentry; and
    (vi) Designated reentry site.

Sec.  450.45  Safety review and approval.

    (a) General. The FAA issues a safety approval to an applicant if it
determines that an applicant can conduct launch or reentry without
jeopardizing public health and safety and safety of property. A license
applicant must satisfy the application requirements in this section and
subpart C of this part.
    (b) Services or property provided by a Federal launch range. The
FAA will accept any safety-related launch or reentry service or
property provided by a Federal launch range or other Federal entity by
contract, as long as the FAA determines that the launch or reentry
services or property provided satisfy this part.
    (c) Issues during safety review. The FAA will advise an applicant,
in writing, of any issues raised during a safety review that would
impede issuance of a safety approval. The applicant may respond, in
writing, or amend its license application as required by Sec.  413.17
of this chapter.
    (d) Denial of a safety approval. The FAA notifies an applicant, in
writing, if it has denied a safety approval for a license application.
The notice states the reasons for the FAA's determination. The
applicant may respond in writing to the reasons for the determination
and request reconsideration in accordance with Sec.  413.21 of this
chapter.
    (e) Application requirements. An applicant must submit the
application requirements information in subpart C of this part, as well
as the following:
    (1) General. An application must--
    (i) Contain a glossary of unique terms and acronyms used in
alphabetical order;
    (ii) Contain a listing of all referenced material;
    (iii) Use equations and mathematical relationships derived from or
referenced to a recognized standard or text, and define all algebraic
parameters;
    (iv) Include the units of all numerical values provided; and
    (v) Include a legend or key that identifies all symbols used for
any schematic diagrams.
    (2) Site description. An applicant must identify the proposed
launch or

reentry site, including contingency abort locations, and submit the
following:
    (i) Boundaries of the site;
    (ii) Launch or landing point locations, including latitude and
longitude;
    (iii) Identity of any site operator; and
    (iv) Identity of any facilities at the site that will be used for
pre- or post-flight ground operations.
    (3) Vehicle description. An applicant must submit the following:
    (i) A written description of the vehicle or family of vehicles,
including structural, thermal, pneumatic, propulsion, electrical, and
avionics and guidance systems used in each vehicle, and all
propellants. The description must include a table specifying the type
and quantities of all hazardous materials on each vehicle and must
include propellants, explosives, and toxic materials; and
    (ii) A drawing of each vehicle that identifies:
    (A) Each stage, including strap-on motors;
    (B) Physical dimensions and weight;
    (C) Location of all safety-critical systems;
    (D) Location of all major vehicle control systems, propulsion
systems, pressure vessels, and any other hardware that contains
potential hazardous energy or hazardous material; and
    (E) For an unguided suborbital launch vehicle, the location of the
rocket's center of pressure in relation to its center of gravity for
the entire flight profile.
    (4) Mission schedule. An applicant must submit a generic launch or
reentry processing schedule that identifies any readiness activities,
such as reviews and rehearsals, and each safety-critical preflight
operation to be conducted. The mission schedule must also identify day
of flight activities.
    (5) Human space flight. For a proposed launch or reentry with a
human being on board a vehicle, an applicant must demonstrate
compliance with Sec. Sec.  460.5, 460.7, 460.11, 460.13, 460.15,
460.17, 460.51, and 460.53 of this chapter.
    (6) Radionuclides. The FAA will evaluate the launch or reentry of
any radionuclide on a case-by-case basis, and issue an approval if the
FAA finds that the launch or reentry is consistent with public health
and safety, safety of property, and national security and foreign
policy interests of the United States. For any radionuclide on a launch
or reentry vehicle, an applicant must--
    (i) Identify the type and quantity;
    (ii) Include a reference list of all documentation addressing the
safety of its intended use; and
    (iii) Describe all approvals by the Nuclear Regulatory Commission
for preflight ground operations.
    (7) Additional material. The FAA may also request--
    (i) Any information incorporated by reference in the license
application; and
    (ii) Additional products that allow the FAA to conduct an
independent safety analysis.

Sec.  450.47  Environmental review.

    (a) General. The FAA is responsible for complying with the
procedures and policies of the National Environmental Policy Act (NEPA)
and other applicable environmental laws, regulations, and Executive
Orders prior to issuing a launch or reentry license. An applicant must
provide the FAA with information needed to comply with such
requirements. The FAA will consider and document the potential
environmental effects associated with issuing a launch or reentry
license consistent with paragraph (b) of this section.
    (b) Environmental Impact Statement or Environmental Assessment. An
applicant must--
    (1) Prepare an Environmental Assessment with FAA oversight;
    (2) Assume financial responsibility for preparation of an
Environmental Impact Statement by an FAA-selected and -managed
consultant contractor; or
    (3) Submit a written re-evaluation of a previously submitted
Environmental Assessment or Environmental Impact Statement when
requested by the FAA.
    (c) Categorical exclusion. An applicant may request a categorical
exclusion determination from the FAA by submitting the request and
supporting rationale.
    (d) Application requirements. An application must include an
approved FAA Environmental Assessment, Environmental Impact Statement,
categorical exclusion determination, or written re-evaluation, which
should address compliance with any other applicable environmental laws,
regulations, and Executive Orders covering all planned licensed
activities in compliance with NEPA and the Council on Environmental
Quality Regulations for Implementing the Procedural Provisions of NEPA.

Subpart C--Safety Requirements

Public Safety Criteria

Sec.  450.101  Public safety criteria.

    (a) Launch risk criteria. An operator may initiate the flight of a
launch vehicle only if all risks to the public satisfy the criteria in
paragraphs (a)(1) through (4) of this section. The following criteria
apply to each launch from liftoff through orbital insertion for an
orbital launch, and through final impact or landing for a suborbital
launch:
    (1) Collective risk. The collective risk, measured as expected
number of casualties (EC), consists of risk posed by
impacting inert and explosive debris, toxic release, and far field
blast overpressure. The FAA will determine whether to approve public
risk due to any other hazard associated with the proposed flight of a
launch vehicle on a case-by-case basis.
    (i) The risk to all members of the public, excluding persons in
aircraft and neighboring operations personnel, must not exceed an
expected number of 1 x 10-4 casualties.
    (ii) The risk to all neighboring operations personnel must not
exceed an expected number of 2 x 10-4 casualties.
    (2) Individual risk. The individual risk, measured as probability
of casualty (PC), consists of risk posed by impacting inert
and explosive debris, toxic release, and far field blast overpressure.
The FAA will determine whether to approve public risk due to any other
hazard associated with the proposed flight of a launch vehicle on a
case-by-case basis.
    (i) The risk to any individual member of the public, excluding
neighboring operations personnel, must not exceed a probability of
casualty of 1 x 10-6 per launch.
    (ii) The risk to any individual neighboring operations personnel
must not exceed a probability of casualty of 1 x 10-5 per
launch.
    (3) Aircraft risk. A launch operator must establish any aircraft
hazard areas necessary to ensure the probability of impact with debris
capable of causing a casualty for aircraft does not exceed 1 x
10-\6\.
    (4) Risk to critical assets. The probability of loss of
functionality for each critical asset must not exceed 1 x
10-\3\, or a more stringent probability if the FAA
determines, in consultation with relevant Federal agencies, it is
necessary to protect the national security interests of the United
States.
    (b) Reentry risk criteria. An operator may initiate the deorbit of
a vehicle only if all risks to the public satisfy the criteria in
paragraphs (b)(1) through (4) of this section. The following criteria
apply to each reentry, from the final health check prior to the deorbit
burn through final impact or landing:
    (1) Collective risk. The collective risk, measured as expected
number of casualties (EC), consists of risk posed by
impacting inert and explosive debris, toxic release, and far field
blast

overpressure. The FAA will determine whether to approve public risk due
to any other hazard associated with the proposed deorbit of a reentry
vehicle on a case-by-case basis.
    (i) The risk to all members of the public, excluding persons in
aircraft and neighboring operations personnel, must not exceed an
expected number of 1 x 10-\4\ casualties.
    (ii) The risk to all neighboring operations personnel must not
exceed an expected number of 2 x 10-\4\ casualties.
    (2) Individual risk. The individual risk, measured as probability
of casualty (PC), consists of risk posed by impacting inert
and explosive debris, toxic release, and far field blast overpressure.
The FAA will determine whether to approve public risk due to any other
hazard associated with the proposed flight of a launch vehicle on a
case-by-case basis.
    (i) The risk to any individual member of the public, excluding
neighboring operations personnel, must not exceed a probability of
casualty of 1 x 10-\6\ per reentry.
    (ii) The risk to any individual neighboring operations personnel
must not exceed a probability of casualty of 1 x 10-\5\ per
reentry.