	Introduction

U.S. industry has always been involved in spaceflight. Contractors build reconnaissance satellites for the Department of Defense (DOD) and weather satellites for the National Oceanic and Atmospheric Administration (NOAA). Increasingly, though, space is becoming commercial. A majority of U.S. satellites are now commercially owned, providing commercial services, and launched by commercial launch providers. Congressional and public interest in space is also becoming more focused on commercial activities, such as companies developing reusable rockets or collecting business data with fleets of small Earth-imaging satellites. Multiple federal agencies regulate the commercial space industry, based on statutory authorities that were enacted separately and have evolved over time. The Federal Aviation Administration (FAA) licenses commercial launch and reentry vehicles (i.e., rockets and spaceplanes) as well as commercial spaceports. NOAA licenses commercial Earth remote sensing satellites. The Departments of Commerce and State license exports of space technology. In response to industry concerns about the complexity of this regulatory framework, the Administration and Congress have made several reform proposals, including Space Policy Directive–2, Streamlining Regulations on Commercial Use of Space (SPD-2, issued in May 2018); the American Space Commerce Free Enterprise Act ( H.R. How the federal government makes use of commercial space capabilities is also evolving. NASA used to own and operate the space shuttles that contractors built for it, but since 2012 it has contracted with commercial service providers to deliver cargo into orbit using their own spacecraft. DOD has its own satellite communications capabilities, but it also procures communications bandwidth from commercial satellite companies. Agencies are considering a host of new opportunities, including acquisition of weather data from commercial satellites, acquisition of science data from commercial lunar landers, and expanded commercial utilization of the International Space Station. This report addresses these two distinct but closely related topics: how the federal government regulates, oversees, and promotes the commercial space sector; and how the federal government itself uses (or might in the future use) commercial space capabilities. As Congress considers these topics, some of the questions that may arise include:
Should the federal regulatory framework for commercial space activities be consolidated? How can the commercial space licensing process be made simpler, more timely, and more transparent? Federal Regulation, Oversight, and Promotion

Key federal agencies involved in the regulation, oversight, and promotion of commercial space activities include the Federal Aviation Administration, for regulation of launch and reentry; the Department of Commerce, for regulation of Earth remote sensing from space, promotion of the U.S. space industry, and export controls on space technology; and the Federal Communications Commission, for regulation of satellite communications. Rather, its director is charged with the following:
(1) promoting commercial provider investment in space activities by collecting, analyzing, and disseminating information on space markets, and conducting workshops and seminars to increase awareness of commercial space opportunities;
(2) assisting United States commercial providers in the efforts of those providers to conduct business with the United States Government;
(3) acting as an industry advocate within the executive branch of the Federal Government to ensure that the Federal Government meets the space-related requirements of the Federal Government, to the fullest extent feasible, using commercially available space goods and services;
(4) ensuring that the United States Government does not compete with United States commercial providers in the provision of space hardware and services otherwise available from United States commercial providers;
(5) promoting the export of space-related goods and services;
(6) representing the Department of Commerce in the development of United States policies and in negotiations with foreign countries to ensure free and fair trade internationally in the area of space commerce; and
(7) seeking the removal of legal, policy, and institutional impediments to space commerce. There is congressional interest, though, in how other commercial activities in space, not subject to current FAA, NOAA, and FCC regulation, should be authorized and supervised. Proposals for a new civil authority for space situational awareness would place it at an existing agency (either Commerce or the FAA) rather than create a new office. The challenge for that process is balancing industry's need for timeliness and transparency with the government's need to meet national security and foreign policy objectives. How should federal regulatory policies be adjusted as the commercial space industry develops new capabilities and applications? What government space activities can or should be conducted by commercial entities? How can government and industry best work together? As the capabilities of the commercial space industry expand, there may be new opportunities for agencies to execute programs via commercial contracts.
U.S. companies have always been involved in spaceflight as contractors to government agencies. Increasingly, though, space is becoming commercial. A majority of U.S. satellites are now commercially owned, providing commercial services, and launched by commercial launch providers. Congressional and public interest in space is also becoming more focused on commercial activities, such as companies developing reusable rockets or collecting business data with fleets of small Earth-imaging satellites. This report addresses two distinct but closely related topics: how the federal government regulates, oversees, and promotes the commercial space sector; and how the federal government itself uses (or might in the future use) commercial space capabilities.
Multiple federal agencies regulate the commercial space industry, based on statutory authorities that were enacted separately and have evolved over time. The Federal Aviation Administration (FAA) licenses commercial launch and reentry vehicles (i.e., rockets and spaceplanes) as well as commercial spaceports. The National Oceanic and Atmospheric Administration (NOAA) licenses commercial Earth remote sensing satellites. The Federal Communications Commission (FCC) licenses commercial satellite communications. The Departments of Commerce and State license exports of space technology. In response to industry concerns about the complexity of this regulatory framework, the Administration and Congress have made several reform proposals, including Space Policy Directive–2, Streamlining Regulations on Commercial Use of Space; the American Space Commerce Free Enterprise Act (H.R. 2809); and the Space Frontier Act of 2018 (S. 3277).
How the federal government makes use of commercial space capabilities is also evolving. The National Aeronautics and Space Administration (NASA) used to own and operate the space shuttles that contractors built for it, but since 2012 it has contracted with commercial service providers to deliver cargo to the International Space Station using their own spacecraft. The Department of Defense (DOD) has its own satellite communications capabilities, but it also procures communications bandwidth from commercial satellite companies. Agencies are considering a host of new opportunities, including acquisition of weather data from commercial satellites, acquisition of science data from commercial lunar landers, and expanded commercial utilization of the International Space Station.
As Congress considers these topics, some of the questions that may arise include:
Should the federal regulatory framework for commercial space activities be consolidated? Reorganization proposals include transferring the FAA's licensing responsibilities to the Office of the Secretary of Transportation, consolidating NOAA's licensing responsibilities and other Department of Commerce functions in the Office of the Secretary of Commerce, and creating a new civil authority for space situational awareness in either the FAA or the Department of Commerce. How can the commercial space licensing process be made simpler, more timely, and more transparent? One focus of this discussion has been the process for interagency consultation on license applications for commercial remote sensing satellites. The challenge for that process is balancing industry's need for timeliness and transparency with the government's need to meet national security and foreign policy objectives. How should federal regulatory policies be adjusted as the commercial space industry develops new capabilities and applications? For example, there is currently no clear mechanism for new space applications, not already subject to FAA, NOAA, or FCC regulation, to be authorized and supervised as mandated by the Outer Space Treaty. Current law restricts the FAA's authority to regulate the safety of commercial spacecraft with human occupants. What government space activities can or should be conducted by commercial entities? How can government and industry best work together? As the commercial space industry's capabilities expand, there may be new opportunities for agencies to execute programs via commercial contracts, but stakeholders may not always agree on which programs are suitable for a commercial approach.