Trump Streamlines Regulations for Commercial Rocket Launches

On March 15, 2023, President Donald Trump signed an executive order aimed at simplifying the regulatory landscape for commercial rocket launches in the United States. The order instructs government agencies to “eliminate or expedite” environmental reviews tied to commercial launch and reentry licenses, a decision that could significantly impact the burgeoning space industry.

The Federal Aviation Administration (FAA), which is part of the Department of Transportation (DOT), is responsible for issuing licenses for commercial launches and ensuring compliance with environmental laws. The recent directive is expected to benefit companies like SpaceX, founded by former Trump ally Elon Musk, which currently leads the market in licensed commercial launches.

Under the new executive order, Transportation Secretary Sean Duffy, who also serves as the acting administrator of NASA, is tasked with using “all available authorities” to accelerate the regulatory process for launch and reentry permits. The order specifies that Duffy should consult with the chair of the Council on Environmental Quality and adhere to “applicable law” as he undertakes this regulatory overhaul.

Changes to Launch Regulations and Environmental Reviews

The executive order also directs Duffy to reassess and potentially amend safety regulations established during Trump’s previous administration. The FAA introduced these regulations, known as Part 450, in 2020, intending to streamline the approval process. However, many in the industry argue that these regulations are overly complex, hindering timely license approvals.

Additionally, Trump has ordered NASA, the military, and the DOT to eliminate redundant reviews for the development of spaceports, particularly at federally owned launch sites such as Cape Canaveral in Florida, Vandenberg Space Force Base in California, and Wallops Island in Virginia. This move is seen as critical for enhancing the operational efficiency of commercial spaceflight.

A significant aspect of the order is the proposal to make the head of the FAA’s Office of Commercial Space Transportation a political appointee, rather than a career civil servant. This office oversees the licensing of commercial launch and reentry activities. Furthermore, Duffy plans to appoint a deregulation advisor to the DOT and elevate the Office of Space Commerce within the Commerce Department.

The executive order echoes a report from ProPublica, which suggested that the administration was preparing to reduce environmental protections associated with rocket launches. Critics like Jared Margolis, a senior attorney at the Center for Biological Diversity, have expressed concerns that such changes could jeopardize public safety and environmental integrity.

Impact on Environmental Regulations and Industry Response

Trump’s order highlights a broader initiative to reduce environmental reviews for large-scale infrastructure projects. The administration has previously directed federal agencies to roll back regulations enforced by the National Environmental Policy Act (NEPA), a foundational law enacted in 1969 that mandates environmental assessments for government actions.

As part of this new approach, the White House has tasked the Transportation Department with creating a list of activities it believes should be exempt from NEPA requirements, specifically regarding launch and reentry licenses. This aspect of the executive order could provoke significant debate among environmental advocates and industry stakeholders.

Another provision in the order aims to reform or eliminate the Part 450 regulations, which received bipartisan criticism in Congress. Initially established to streamline the licensing process, these regulations have faced backlash for not accommodating the rapid advancements in rocket technology, such as those seen with SpaceX’s Starship/Super Heavy launch vehicle.

The FAA approved a request from SpaceX in May to increase its number of authorized Starship launches from five to 25 annually from its base in Texas. Last year, under the Biden administration, an FAA committee was formed to evaluate the limitations of Part 450 regulations. In February, bipartisan leaders of the House Science, Space, and Technology Committee requested an independent review of these regulations by the Government Accountability Office.

Industry expert Laura Forczyk, founder of the consulting firm Astralytical, noted that while the Biden administration recognized the need for regulatory reform, progress has been slow. She expressed hope that the current executive order might spur meaningful changes that have been overdue.

The order also stipulates that the FAA evaluate which regulations could be waived for hybrid launch or reentry vehicles with FAA airworthiness certificates, as well as determine which requirements could be relaxed for rockets equipped with flight termination systems. These discussions align with topics previously explored by the Biden-era FAA.

Additionally, the new policy seeks to limit state authority in enforcing environmental regulations related to spaceport construction and operation. This is particularly significant following the California Coastal Commission’s recent rejection of SpaceX’s proposal to double its launch cadence at Vandenberg Space Force Base, which is supported by the Space Force.

Finally, the executive order assigns the Department of Commerce the responsibility to authorize “novel space activities,” such as in-space manufacturing, asteroid and planetary mining, and initiatives aimed at removing space debris.

As the commercial space sector expands rapidly, the implications of this executive order will likely resonate throughout the industry, influencing regulatory practices and operational capabilities in the years to come.