3). DOD provides guidance and safety oversight for  government and commercial launches at federal launch sites. Other federal agencies support commercial launches in various ways. FAA’s  oversight of launches includes the use of a system safety process in its  licensing and monitoring process and incorporation of management  controls, which we have reported to be effective means of providing safety  oversight and program management. FAA Has Developed Regulations and Training to Respond to Emerging Issues

In response to changes in the commercial space launch industry, including  the emerging issues of anticipated growth in space tourism, FAA issued  regulations in 2000 for the licensing of launch and reentry of reusable  launch vehicles. FAA stated that it addresses these concerns by (1) making  license determinations on a case-by-case basis using common  performance standards and (2) providing waivers in special  circumstances. In addition, industry officials and one expert with whom we spoke raised  concerns about the costs that expendable launch vehicle companies would  incur to comply with the proposed regulations, because they believe that  FAA’s safety requirements at federal launch sites will be in addition to the  Air Force’s requirements. FAA Faces Human Resources and Workload Challenges in Addressing Its Responsibilities for Licensing Reusable Vehicles

If the space tourism industry develops as rapidly as some industry  representatives suggest, FAA’s responsibility for licensing reusable launch  vehicles will greatly expand. However, FAA said that it has since filled these positions. However, the agency has not conducted  trend analyses of that information. FAA Faces the Challenge of Determining the Circumstances under Which It Would Regulate Crew and Flight Participant Safety on Space Tourism Flights before 2012

The Commercial Space Launch Amendments Act of 2004 requires that a  phased approach be used in regulating commercial human space flight,  and that regulatory standards evolve as the industry matures. To Help Address Key Competitive Issues Facing the Industry, the U.S. Government Has Played an Important Role

The U.S. commercial space launch industry faces key competitive issues  concerning high launch costs and export controls. FAA is prohibited from regulating crew and passenger safety before 2012,  except in response to incidents that either pose a high risk or result in  serious or fatal injury. FAA has interpreted this limited authority to allow  it to regulate crew safety in certain circumstances and has been proactive  in proposing regulations concerning emergency training for crews and  passengers. Recognizing the potential conflict in the oversight of commercial  space launches, Congress required DOT to report by December 2008 on  whether the federal government should separate the promotion of human  space flight from the regulation of such activity. To determine how well FAA has overseen the safety of commercial space  launches to date and to what extent it is responding to key emerging  issues in the commercial space launch industry, we reviewed FAA’s safety  oversight processes, identified key emerging issues in the commercial  space launch industry, and reviewed FAA’s response to those issues. FAA’s safety review includes an analysis of the reliability and functions of  the vehicle, an assessment of the risk and hazards it poses to public  property and individuals, and a review of the launch company’s policies  and practices to demonstrate that the operations “pose no unacceptable  threat to the public.” FAA conducts environmental reviews to fulfill its  obligations under the National Environmental Policy Act, and FAA  ensures that proposed commercial space transportation activities present  “no unacceptable danger to the natural environment.” In addition, FAA  reviews a proposed payload to determine whether its launch or reentry  would jeopardize public health and safety, safety of property, U.S. national  security or foreign policy interests, or international obligations of the  United States.
Why GAO Did This Study

In 2004, the successful launches of SpaceShipOne raised the possibility of an emerging U.S. commercial space tourism industry that would make human space travel available to the public. The Federal Aviation Administration (FAA), which has responsibility for safety and industry promotion, licenses operations of commercial space launches and launch sites. To allow the industry to grow, Congress prohibited FAA from regulating crew and passenger safety before 2012, except in response to high-risk events. GAO evaluated FAA's (1) safety oversight of commercial space launches, (2) response to emerging issues, and (3) challenges in regulating and promoting space tourism and responding to competitive issues affecting the industry. GAO reviewed FAA's applicable safety oversight processes and interviewed federal and industry officials.

What GAO Found

Several measures indicate that FAA has provided a reasonable level of safety oversight for commercial launches. For example, none of the 179 commercial launches that FAA licensed over the past 17 years resulted in fatalities, serious injuries, or significant property damage. However, FAA shared safety oversight with the Department of Defense (DOD) for most of these launches because they took place at federal launch sites operated by DOD. In addition, FAA's licensing activities incorporate a system safety process, which GAO recognizes as effective in identifying and mitigating risks. GAO's analysis of FAA records indicates that the agency is appropriately applying management controls in its licensing activities, thereby helping to ensure that the licensees meet FAA's safety requirements. In response to emerging issues in the commercial space launch industry, such as the potential development of space tourism, FAA has developed safety regulations and training for agency employees. The industry has raised concerns about the costs of complying with regulations and about the flexibility of the regulations to accommodate launch differences. However, FAA believes it has minimized compliance costs by basing its regulations on common safety standards and has allowed for flexibility by taking a case-by-case approach to licensing and by providing waivers in certain circumstances. FAA faces several challenges and competitive issues in regulating and promoting space tourism. For example, FAA expects to need more experienced staff for safety oversight as new technologies for space tourism evolve, but has not estimated its future resource needs. Other challenges for FAA include determining the specific circumstances under which it would regulate space flight crew and passenger safety before 2012 and balancing its responsibilities for safety and promotion to avoid conflicts. Recognizing the potential conflict in the oversight of commercial space launches, Congress required the Department of Transportation (DOT) to commission a report by December 2008 on several issues, including whether the promotion of human space flight should be separate from the regulation of such activity. In addition, U.S. commercial space launch industry representatives said that they face competitive issues concerning high launch costs and export controls that can affect their ability to sell services overseas. The federal government has provided support to the industry to help lower launch costs.