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15 December 2006


[Federal Register: December 15, 2006 (Volume 71, Number 241)]

[Rules and Regulations]               

[Page 75615-75645]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr15de06-10]                         





[[Page 75615]]



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Part II



Department of Transportation



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Federal Aviation Administration



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14 CFR Parts 401, 415, 431, 435, 440 and 460



Human Space Flight Requirements for Crew and Space Flight Participants; 

Final Rule





[[Page 75616]]





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DEPARTMENT OF TRANSPORTATION



Federal Aviation Administration



14 CFR Parts 401, 415, 431, 435, 440 and 460



[Docket No. FAA-2005-23449]

RIN 2120-AI57



 

Human Space Flight Requirements for Crew and Space Flight 

Participants



AGENCY: Federal Aviation Administration (FAA), DOT.



ACTION: Final rule.



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SUMMARY: The FAA is establishing requirements for human space flight as 

required by the Commercial Space Launch Amendments Act of 2004, 

including rules on crew qualifications and training, and informed 

consent for crew and space flight participants. The requirements should 

provide an acceptable level of safety to the general public and ensure 

individuals on board are aware of the risks associated with a launch or 

reentry. The rule also applies existing financial responsibility and 

waiver of liability requirements to human space flight and experimental 

permits. Experimental permits are the subject of a separate rulemaking.



Dates: Effective Date:

    These amendments become effective February 13, 2007.

    Compliance Date: Affected parties, however, do not have to comply 

with the information collection requirements in Sec. Sec.  460.5, 

460.7, 460.9, 460.19, 460.45, and 460.49 until the FAA publishes in the 

Federal Register the control number assigned by the Office of 

Management and Budget (OMB) for these information collection 

requirements. Publication of the control number notifies the public 

that OMB has approved these information collection requirements under 

the Paperwork Reduction Act of 1995.



FOR FURTHER INFORMATION CONTACT: For technical information, contact 

Kenneth Wong, Deputy Manager, Licensing and Safety Division, Commercial 

Space Transportation, AST-200, Federal Aviation Administration, 800 

Independence Avenue, SW., Washington, DC 20591; telephone (202) 267-

8465; facsimile (202) 267-3686; e-mail ken.wong@faa.gov. For legal 

information, contact Laura Montgomery, Senior Attorney, Office of the 

Chief Counsel, Federal Aviation Administration, 800 Independence Avenue 

SW., Washington, DC 20591; telephone (202) 267-3150; facsimile (202) 

267-7971, e-mail laura.montgomery@faa.gov.



SUPPLEMENTARY INFORMATION:



Availability of Rulemaking Documents



    You can get an electronic copy using the Internet by:

    (1) Searching the Department of Transportation's electronic Docket 

Management System (DMS) Web page (http://dms.dot.gov/search);    (2) Visiting the FAA's Regulations and Policies Web page at http://



http://www.faa.gov/regulations_policies/; or



    (3) Accessing the Government Printing Office's Web page at http://www.gpoaccess.gov/fr/index.html

.



    You can also get a copy by sending a request to the Federal 

Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 

Avenue SW., Washington, DC 20591, or by calling (202) 267-9680. Make 

sure to identify the amendment number or docket number of this 

rulemaking.

    Anyone is able to search the electronic form of all comments 

received into any of our dockets by the name of the individual 

submitting the comment (or signing the comment, if submitted on behalf 

of an association, business, labor union, etc.). You may review DOT's 

complete Privacy Act statement in the Federal Register published on 

April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit 

http://dms.dot.gov.





Small Business Regulatory Enforcement Fairness Act



    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 

1996 requires the FAA to comply with small entity requests for 

information or advice about compliance with statutes and regulations 

within its jurisdiction. If you are a small entity and you have a 

question regarding this document, you may contact your local FAA 

official, or the person listed under FOR FURTHER INFORMATION CONTACT. 

You can find out more about SBREFA on the Internet at http://www.faa.gov/regulations_policies/rulemaking/sbre_act/

.





Authority for This Rulemaking



    The FAA's authority to issue rules on commercial space 

transportation safety is found in Title 49 of the United States Codes, 

section 322(a), which authorizes the Secretary of Transportation to 

carry out Subtitle IX, Chapter 701, 49 U.S.C. 70101-70121 (Chapter 

701). The Commercial Space Launch Amendments Act of 2004 (the CSLAA) 

provides additional authority. Under 49 U.S.C. 70105(b)(4), no holder 

of a license or permit may launch or reenter crew unless the crew has 

received training and satisfied medical or other conditions specified 

in a license or permit, all in accordance with FAA regulations. This 

rulemaking imposes crew qualification and training requirements and 

implements the statutory requirement that an operator advise the flight 

crew and any space flight participant that the U.S. Government has not 

certified the launch vehicle as safe. Section 70105(b)(5) directs the 

FAA to promulgate regulations requiring that the holder of a license or 

permit inform each space flight participant in writing about the risks 

of launch or reentry.



Table of Contents



I. Background

II. Description of Final Rule and Discussion of Comments

    A. Equivalent Level of Safety

    B. Launch and Reentry With Crew

    1. Definitions

    a. Cabin Crew Suggestion

    b. Recommendations Regarding Personnel on the Ground

    c. Carrier Aircraft Personnel

    d. Payment for Pilot or Remote Operator Training

    2. Authority

    3. Pilot Qualifications

    4. Remote Operator Qualifications

    5. Medical Standards for Crew

    a. Objections to Requiring Medical Certification of Crew Who Do 

Not Have a Safety-Critical Role

    b. Recommendations for More Stringent Medical Standards

    6. Crew Training

    7. Crew Notification

    8. Environmental Control and Life Support System

    a. Requiring Both Monitoring and Control of Atmospheric 

Conditions or Requiring Only Control

    b. Open-Loop System Versus Closed-Loop System

    c. Other Environmental Control and Life Support System Related 

Comments

    d. Guidance Plans

    9. Smoke Detection and Fire Suppression

    10. Human Factors

    11. Verification Program

    12. Crew Waiver of Claims Against U.S. Government

    13. Professional Engineer

    C. Launch and Reentry With a Space Flight Participant

    1. Risk to Space Flight Participants

    2. Informed Consent

    a. Space Flight Participant's Ability To Be Informed

    3. Physical Examination

    4. Space Flight Participant Waiver of Claims Against U.S. 

Government

    5. Space Flight Participant Training

    6. Security Requirements

    D. Financial Responsibility and Waiver of Liability

    1. Changes From What the FAA Proposed in the NPRM

    2. Waivers of Claims

    3. Federal Preemption

    4. Insurance

    5. Maximum Probable Loss



[[Page 75617]]



III. Rulemaking Analyses

IV. The Amendment



I. Background



    On December 23, 2005, the FAA published a notice of proposed 

rulemaking (NPRM), ``Human Space Flight Requirements for Crew and Space 

Flight Participants'' 70 FR 77261 (Dec. 29, 2005), which discusses the 

background of the CSLAA and the nascent human space flight industry. 

The NPRM also discusses the safety considerations underlying the FAA's 

proposed requirements and each alternative that the agency considered.

    In the CSLAA, Congress also directed the FAA to issue guidelines or 

advisory materials to guide the implementation of the law as soon as 

practical, and to promulgate requirements governing experimental 

permits. On February 11, 2005, the FAA issued ``Draft Guidelines for 

Commercial Suborbital Reusable Launch Vehicle Operations with Flight 

Crew'' and ``Draft Guidelines for Commercial Suborbital Reusable Launch 

Vehicle Operations with Space Flight Participants.'' On March 31, 2006, 

the FAA published an NPRM, ``Experimental Permits for Reusable 

Suborbital Rockets.'' 71 FR 16251.



II. Description of Final Rule and Discussion of Comments



    In this final rule, the FAA changes parts 401, 415, 431, 435 and 

440 of Title 14 of the Code of Federal Regulations and establishes a 

new part 460 in response to the CSLAA's requirement to issue 

regulations governing crew and space flight participant, by June 23, 

2006. Revisions in part 440 codify the financial responsibility and 

risk allocation regime for activities authorized by a permit and for 

crew and space flight participants. These requirements supplement other 

launch and reentry regulations, including those in parts 415, 431, and 

435. For example, part 431 governs reusable launch vehicle operations, 

and contains system safety and risk requirements and operational 

constraints. An operator of a reusable launch vehicle with a person on 

board must comply with this rule and part 431.

    Part 460 applies to anyone applying for or having a license or 

permit under Title 14 Code of Federal Regulation (CFR) Chapter III, who 

conducts a flight with crew or space flight participants on board a 

vehicle, or employs a remote operator of a vehicle with a human on 

board.\1\ This part also applies to a space flight participant or crew 

member participating in an activity authorized under 14 CFR Chapter 

III. Part 460 defines crew and flight crew and imposes notification, 

medical, qualification, and training requirements. It also promulgates 

informed consent and training requirements for space flight 

participants.

---------------------------------------------------------------------------



    \1\ For a vehicle with no one on board that is controlled by a 

remote operator part 460 does not apply. Instead, an operator will 

be governed by other parts, such as parts 431 and 435.

---------------------------------------------------------------------------



    The FAA received comments from forty-two entities, including 

aerospace companies, associations, service providers, individuals and 

other agencies of the U.S. Government. Operators of launch and reentry 

vehicles who provided comments include Blue Origin, LLC (Blue Origin), 

the Personal Spaceflight Federation \2\ (Federation), Rocketplane 

Limited, Inc. (Rocketplane), TGV Rockets, Inc., and XCOR Aerospace 

(XCOR). The following associations, individuals and service providers 

also commented: Airline Pilots Association International (ALPA); 

Association of Space Explorers-USA (ASE), International Association of 

Space Entrepreneurs and Institute for Space Law and Policy (IASE and 

ISLAP); Knutson & Associates, Attorneys at Law (Knutson); Nickolaus 

Leggett (Leggett); Planehook Aviation Services, LLC (Planehook); 

Predesa, LLC (Predesa) and James Snead.

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    \2\ The Federation is a non-profit trade association consisting 

of companies whose business involves or will involve commercial 

human space flight. They provided consensus comments on the NPRM and 

consist of the following: Air Launch, Armadillo Aerospace, Bigelow 

Aerospace, Mojave Spaceport, RocketPlane Limited, Inc., Scaled 

Composites, Space Adventures, SpaceDev, Space Explorations 

Technologies Corporation (SpaceX), The SpaceShip Company, XCOR 

Aerospace, X PRIZE Foundation, and Virgin Galactic.

---------------------------------------------------------------------------



    In general, the commenters supported the proposed requirements, but 

with several suggested changes.



A. Equivalent Level of Safety



    The Federation recommended that the FAA consider allowing means of 

compliance other than those identified in the regulations. In part 460, 

the FAA will allow an operator to demonstrate that an alternative 

method of compliance for certain requirements provides an equivalent 

level of safety and satisfies the rule. The FAA notes that many of the 

requirements of this part are performance standards that already offer 

operators a great deal of flexibility. Where a requirement is 

prescriptive, such as when the FAA requires a pilot certificate, the 

FAA does not contemplate approving alternatives through the license or 

permit process unless the requirement explicitly allows alternatives. 

As the Federation noted, the FAA also has the ability to grant waivers 

under 14 CFR 404.3. If an operator wishes to pursue a course that is 

not consistent with the requirements of part 460, the operator must 

apply for a waiver.



B. Launch and Reentry With Crew



    Subpart A of part 460 applies to the flight crew and any remote 

operator. The only ground crew covered is a remote operator.

1. Definitions

    The FAA is retaining the definition of crew required by the CSLAA, 

that is, any employee of a licensee, transferee, or permittee, or of a 

contractor or subcontractor of a licensee, transferee, or permittee, 

who performs activities in the course of that employment directly 

relating to the launch, reentry, or other operation of or in a launch 

vehicle or reentry vehicle that carries human beings. As proposed in 

the NPRM, a crew consists of flight crew, crew on board a vehicle 

during a launch or reentry, and any remote operator. Also, crew members 

may be independent contractors as well as employees. As it explained in 

the NPRM, the FAA defines crew to include all personnel on board, 

namely the flight crew, as part of the crew, and thus give a broader 

meaning to crew than one consisting only of a pilot or remote operator. 

Because Congress contemplated operation of or in a vehicle (emphasis 

added), Congress appears to have intended some persons on the ground to 

be included as part of the crew. A remote operator of a vehicle 

satisfies the Congressional direction to include some ground crew as 

part of the crew. Also, a remote operator is someone whose employment 

would directly relate to a launch or reentry, thus satisfying the other 

statutory prong. Limiting ground crew to remote operators avoids 

providing notice to personnel on the ground about the dangers of a 

vehicle they are not going to board. Were the FAA to include more 

ground personnel as crew, the CSLAA would require an operator to inform 

those persons that the U.S. Government has not certified the vehicle as 

safe for carrying crew or space flight participants, 49 U.S.C. 

70105(b)(4)(B), which seems an exercise of no benefit.

    Commenters raised a number of questions regarding the definition of 

crew. With the exception of those related to the requirement for a 

second-class airman medical certificate, they are addressed here.

    a. Cabin Crew. The IASE and ISLAP suggested that distinguishing 

between ``cabin crew'' and ``flight crew'' would ensure that the 

fundamental difference between them--direct involvement in



[[Page 75618]]



vehicle operation as opposed to passenger safety and comfort--would be 

recognized in future regulations while facilitating clearer discussion 

of the regulatory responsibilities of each crew member. This suggestion 

is premature. The FAA will address the recommendation when those 

circumstances arise.

    b. Personnel on the Ground. The FAA, as it proposed in the NPRM, 

defines a remote operator as a crew member who has the ability to 

control, in real time, a launch or reentry vehicle's flight path, and 

is not on board the vehicle. This means that a remote operator is the 

only member of the ground crew.\3\

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    \3\ ASE commented that it believes the portion of the definition 

of crew ``A crew consists of flight crew and any remote operator'' 

to mean if a person is not a flight crew member or a remote 

operator, then that person is not crew. ASE recommended that the 

definition read ``A crew consists only of flight crew and any remote 

operator'' to avoid any misinterpretation. The FAA does not 

incorporate the suggested change because it is unnecessary but 

confirms in this document that if a person is not a flight crew 

member or a remote operator, then that person is not crew.

---------------------------------------------------------------------------



    Blue Origin requested that the FAA clarify the definition of remote 

operator to ensure the exclusion of persons on the ground from the 

definition of crew. Blue Origin recommended that the FAA clarify that 

``control'' means navigation and control of the vehicle, rather than 

merely being in the chain of command. Blue Origin's clarification would 

preclude someone who initiated a launch or an abort from being 

considered part of the crew. Blue Origin reasoned that launch decisions 

will often be made by a launch director after receiving input from all 

groups, including air traffic control.

    As explained in the NPRM, a remote operator is someone who actively 

controls the vehicle, and does more than initiate or abort a launch in 

progress. Active control encompasses navigation as well as control. A 

mission flight control officer in charge of terminating the flight of 

an errant expendable launch vehicle would not be treated as a remote 

operator because he or she does not have the ability to control, in 

real time, the vehicle's flight path. Accordingly, the FAA does not 

need to adopt Blue Origin's suggestion.

    Predesa suggested expanding ground crew to include ``specialists 

who monitor and maintain vehicle systems via telemetry'' as they may 

assist a remote operator or pilot, and provide information or modify 

the operations of vehicle systems during flight. Predesa recommended 

that these personnel possess FAA flight engineer certification or FAA 

pilot certification. Predesa does not believe that persons who are not 

on board should be subjected to lesser standards merely because of 

their location.

    The FAA has decided against expanding the definition because the 

personnel, even though not covered under part 460 if not on board the 

launch or reentry vehicle, will be subjected, during the license or 

permit process, to the standards appropriate to their roles. For 

example, an applicant proposing a reusable launch vehicle mission would 

have to meet part 431, which requires that a licensed operator 

implement a system safety process and operational restrictions and 

satisfy risk requirements. As part of the system safety process, 

personnel on the ground will receive training to carry out their roles 

safely, and it is through this training that the personnel on the 

ground will be held to standards appropriate to their roles. As part of 

the proposed requirements for obtaining an experimental permit, the FAA 

intends to require an applicant conduct a hazard analysis. Human error 

issues and training of ground personnel would be addressed through this 

analysis. Also, part 431 requirements address the readiness of vehicle 

safety operations personnel to support flight under nominal and non-

nominal conditions.

    c. Carrier Aircraft Personnel. Dassault Aviation and Spaceport 

Associates asked whether the crew of a carrier aircraft \4\ would be 

included as crew under part 460. Spaceport Associates pointed out that, 

in one sense, crew of a carrier aircraft are effectively providing the 

first stage of the launch although not themselves subject to 

extraordinary biomedical stresses. Planehook commented that adopting 

the term ``spacecraft pilot'' would reduce confusion when 

distinguishing between the pilot of an aircraft and the pilot of a 

launch vehicle. According to Planehook, the training of crew on a 

carrier aircraft should be addressed in 14 CFR part 61 because the 

vehicle is most likely to remain an air-breathing aircraft. This 

rulemaking does not treat crew on board a carrier aircraft as crew 

under part 460.

---------------------------------------------------------------------------



    \4\ Some licensees have used aircraft to assist in space launch. 

Orbital Sciences Corporation's Pegasus launch vehicle is air-

launched from an L-1011 carrier aircraft. Scaled Composites' 

SpaceShipOne was air-launched from a White Knight carrier aircraft. 

The L-1011 was issued a supplemental type certificate and operates 

under two FAA airworthiness certificates: A standard airworthiness 

certificate for operation without Pegasus and a restricted 

airworthiness certificate for operations with the Pegasus launch 

vehicle. White Knight operated under a special airworthiness 

certificate in the experimental category when it was operating alone 

or carrying SpaceShipOne. The FAA did not impose requirements on the 

crew of the carrier aircraft other than those required by the FAA's 

aviation requirements.

---------------------------------------------------------------------------



    The FAA defines flight crew to mean crew that is on board a vehicle 

during a launch or reentry. The crew aboard the aircraft are already 

covered by existing FAA regulations. Thus, new terms such as spacecraft 

pilot are not necessary to distinguish between aviation and space 

flight crew.

    d. Payment for Pilot or Remote Operator Training. Under this final 

rule, the FAA will not allow a space flight participant to act as a 

pilot or remote operator of a launch or reentry vehicle. ASE noted that 

it is possible that a qualified, medically-certified person may wish to 

pay an operator to pilot the operator's vehicle. The FAA notes that 

someone paying to fly, whether as a passenger or at the controls, is a 

space flight participant rather than an employee.

    For public safety reasons, the FAA will not allow space flight 

participants to pilot launch or reentry vehicles at this time. A space 

flight participant who wants to pilot a launch or reentry vehicle would 

have to become an employee or independent contractor of the operator to 

acquire vehicle and mission-specific training. The operator will be in 

a better position to evaluate the skills of an employee or independent 

contractor than of a space flight participant, particularly as those 

skills relate to the requirements of the operator's particular vehicle. 

The FAA acknowledges that this restriction may create a dilemma for 

someone who wishes to acquire training in order to become employed, 

but, while the technology is so new, it is important for public safety 

that pilots be highly skilled at the outset.

2. Authority

    The FAA has the authority to protect crew. Spaceport Associates 

questioned the FAA's authority to protect crew when it commented that 

the FAA should not implement design requirements to protect crew, 

particularly in light of the requirement to notify crew members that a 

vehicle has not been certified as safe. The commenter observed, in 

effect, that the FAA was limited to protecting the general public. 

Under the CSLAA, the FAA has the authority to protect the crew because 

they are part of the flight safety system that protects the general 

public.\5\

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    \5\ Even before the passage of the CSLAA, this has been the 

case. In April 2004 the FAA issued two RLV mission specific 

licenses: one to Scaled Composites and one to XCOR. These licenses 

apply to suborbital RLV missions with a pilot on board, where the 

FAA addressed the safety of the crew in order to protect the public. 

See also, Notice of Policy, 68 FR 56039, 56040 (Sept. 29, 2003).



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[[Page 75619]]



3. Pilot Qualifications

    As proposed in the NPRM, Sec.  460.5 requires a pilot of a launch 

or reentry vehicle to possess and carry an FAA pilot certificate with 

an instrument rating. The FAA invited public comment on the proposed 

requirement and received differing views.

    Some commenters considered the requirement too lenient. TGV 

suggested that a pilot certificate might only partially address the 

knowledge, skills, and abilities necessary for safety. TGV recommended 

that, in addition to a pilot certificate, the FAA require test pilot 

credentials or military supersonic experience for single piloted 

suborbital and orbital vehicles. Because having a pilot certificate may 

not be sufficient, Sec.  460.5(c)(2) requires aeronautical experience 

and skills necessary to pilot and control the vehicle.

    The Federation and Planehook agreed with the requirement for a 

pilot to have an instrument rating because, as Planehook commented, the 

trajectory of a vehicle will pass through Class A airspace at least 

twice. ALPA also agreed that the pilots or flight crew, including any 

remote operators acting under part 460, should be certificated.

    Focusing on a possible exception to the utility of requiring a 

pilot certificate, Mr. Nickolaus Leggett recommended against requiring 

pilots and remote operators of launch vehicles that do not have 

aircraft characteristics to possess an FAA pilot certificate with an 

instrument rating. He pointed out that a strictly ballistic suborbital 

vehicle consisting of a capsule and parachute does not require 

conventional piloting skills at all. Similarly, Starchaser recommended 

not requiring a pilot certificate at all and relying only on the 

performance requirement that a pilot possess the necessary skills and 

experience for the vehicle. An Air Force member of the Common Standards 

Working Group (CSWG) \6\ recommended that the FAA not require that a 

pilot be certified when a vehicle is unique and lacks any similarity to 

an airplane.\7\ The commenter suggested that a properly trained 

engineer may be a better choice as a pilot for the vehicles that do not 

resemble aircraft. If the key criterion is to protect the public, an 

individual intimately familiar with the unique vehicle design, 

capabilities, and properly trained in the operation and recovery of 

such vehicles could be a better choice to operate the vehicle than a 

pilot.

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    \6\ The CSWG consists of Air Force, FAA, and other government 

agencies. The CSWG develops, documents, and maintains common safety 

standards for public safety of the launch and reentry of launch and 

reentry vehicles.

    \7\ The commenter agreed with requiring pilot certification 

where a vehicle has many characteristics in common with an airplane.

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    The FAA requires a pilot certificate so that a pilot of a reusable 

launch vehicle has a basic level of aeronautical experience, an 

understanding of the National Airspace System (NAS), and an 

understanding of the regulatory requirements under which aircraft in 

the NAS operate, including cloud clearance requirements and airspace 

restrictions. This awareness will enhance overall safety of the NAS, 

regardless of whether a vehicle has wings. An instrument rating should 

ensure that pilots of launch and reentry vehicles have acquired the 

skills of scanning cockpit displays, correctly interpreting the 

instruments, and responding with correct control inputs. The FAA 

expects that regardless of the kind of vehicle used, there will be 

times when a pilot will be relying on instrument skills and competency. 

Having a pilot certificate and aeronautical experience provides 

evidence of a basic level of knowledge of and experience with the NAS, 

such as communications, navigation, airspace limitations, and other 

aircraft traffic avoidance, that will help promote public safety.

    Planehook commented that a pilot or remote operator of a vehicle 

should have a commercial pilot certificate appropriate to the type of 

vehicle flown. The FAA's guidelines contain such a recommendation. The 

FAA did not, however, propose in the NPRM to implement this guideline 

as a requirement. The FAA did not specify the particular kind of pilot 

certificate required nor what category, class, type or instrument 

ratings are needed because different operators are proposing vehicles 

of varied and unique designs. The pilot certification is not directly 

transferable from aircraft to launch or reentry vehicles. Rocket-

powered vehicles do not operate as aircraft. As Mr. Leggett noted, even 

for a more manually controlled ballistic vehicle, the skills required 

differ from those of an aircraft pilot.

    The FAA recognizes the validity of these comments. Accordingly, the 

agency is adopting a performance requirement, Sec.  460.5(c)(2), that 

requires a pilot and remote operator to possess aeronautical experience 

and skills necessary to pilot and control the vehicle for any launch or 

reentry vehicle that will operate in the NAS. To avoid overly burdening 

the industry, and in recognition of the diverse range of vehicles 

proposed, the FAA does not require an RLV pilot to hold a pilot 

certificate for a specific category of aircraft or to have a specific 

instrument rating on that certificate.

4. Remote Operator Qualifications

    Section 460.5 requires a remote operator to possess and carry a 

pilot certificate with an instrument rating. Section 460.5(c)(1)(iii), 

however, allows an operator to demonstrate through the license or 

permit process that an alternative approach provides an equivalent 

level of safety. In the NPRM, the FAA invited public comment on the 

proposed requirement that a remote operator of a launch or reentry 

vehicle with a human on board possess an FAA pilot certificate with an 

instrument rating and that he or she demonstrate the knowledge of the 

NAS necessary to operate the vehicle.

    Predesa questioned whether it was safe to allow remote operators at 

all. Predesa pointed out that remote operation of a vehicle could lead 

to concerns over the security and integrity of telemetry from the 

vehicle and of the commands sent to control the vehicle. Predesa 

recommended redundancy in the communications channel or on-board back 

up in the form of a trajectory controller or, preferably, a pilot on 

board. James Snead also recommended that a pilot be on board because 

there is no precedent for flight without one.

    The FAA notes that there is precedence for permitting remote 

operators to control a vehicle. Unmanned aerial vehicles (UAVs) are 

already operated by the National Aeronautics and Space Administration 

(NASA) and the military services, and authorized by the FAA. The FAA 

will address whether the operators can sufficiently control a vehicle 

through the license or permit process on a case-by-case basis. The 

safety issues, such as those raised by Predesa, will also be addressed 

in that process.

    The Federation and Starchaser recommended against requiring remote 

operators to possess pilot certificates at all, let alone with an 

instrument rating. The Federation recommended that remote operators 

still demonstrate knowledge, albeit with wide latitude, of the NAS and 

the deconfliction of airspace necessary to safely operate the vehicle. 

The Federation claimed the variety of possible vehicles and control 

schemes renders unnecessary a requirement that remote operators possess 

a pilot's certificate. According to the Federation, operators can and 

should be allowed to demonstrate their knowledge of the NAS in other 

ways, such as by written test. The Federation noted that John Carmack 

of Armadillo



[[Page 75620]]



Aerospace successfully operated a vertical takeoff, vertical landing 

vehicle remotely at the 2005 X PRIZE Cup, without the use of a pilot's 

license or instrumentation resembling that of an aircraft cockpit.\8\

---------------------------------------------------------------------------



    \8\ It should be noted that Armadillo's vertical-take off 

vehicle, which hovered about 25 feet above the ground for a few 

seconds and had no human on board, was not an FAA licensed launch. 

Nor did the vehicle have an impact on the NAS.

---------------------------------------------------------------------------



    One commenter, t/Space, suggested that in some instances, remote 

operation of a launch or reentry vehicle with a human on board may 

provide backup command and control of the vehicle if the pilot or 

flight crew is incapacitated or otherwise unable to function. When not 

intended for nominal flight operations, remote operation from the 

ground is likely to be limited to execution of pre-planned flight, 

reentry, or abort scenarios. According to t/Space, the remote operator 

in these situations would not require the same level of knowledge and 

experience as a pilot with an instrument rating.

    The FAA acknowledges that there may be a variety of vehicle types 

and control schemes, such as back up remote operators that may be used. 

Accordingly, for a remote operator, the FAA will allow an operator to 

demonstrate that something other than a pilot certificate provides an 

equivalent level of safety.

5. Medical Standards for Crew

    Section 460.5(e) requires that each crew member with a safety-

critical role possess and carry an FAA second-class airman medical 

certificate issued in accordance with 14 CFR part 67 \9\ and issued no 

more than 12 calendar months prior to the month of launch and reentry. 

For example, this means that if a launch were to take place on May 1, 

2007, or May 31, 2007, a medical certificate issued anytime in May 2006 

would satisfy the requirement. Because the requirement applies to both 

launch and reentry, operators who plan on a reentry in a different 

month than the launch should ensure that their crews' medical 

certificates are still timely for the reentry.

---------------------------------------------------------------------------



    \9\ In the NPRM, the FAA proposed to require that the medical 

certificate be issued within 12 months of launch or reentry as 

opposed to 12 months prior to the month of launch or reentry. The 

proposed time limit might have created confusion because a second-

class medical certificate expires at the end of the last day of the 

twelfth month after the month of the date of examination. 14 CFR 

61.23(d)(2). The requirement now provides the same expiration date 

as part 61.

---------------------------------------------------------------------------



    Requiring a medical certificate only for crew with a safety-

critical role marks a change from the NPRM, where the FAA proposed that 

all crew members, regardless of whether they were safety-critical, 

possess and carry such a certificate.

    a. Objections to Requiring Medical Certification of Crew Who Do Not 

Have a Safety-Critical Role. Rather than creating a separate class of 

crew who are not safety critical or modifying the definition of crew as 

some commenters suggested, the FAA can better address medical risk to 

the mission by more precisely identifying what triggers the need for a 

medical certification. In section 460.5(e), the FAA distinguishes 

between crew members with a safety-critical and non-safety-critical 

role to determine whether they must satisfy the medical requirements.

    Several commenters, including ALPA, generally concurred with the 

FAA that requiring medical certification is appropriate, particularly 

for those crew members whose duties are associated with operation of 

the launch or reentry vehicles. Several suggested that it may not be 

necessary for all crew members. Planehook and David J. Sullivan-

Nightengale commented that a second-class medical certificate was 

appropriate for the pilot but unnecessary for other crew members. The 

Federation, t/Space, and XCOR asked the FAA to reconsider requiring a 

second-class medical certificate for non-safety-critical crew on the 

grounds that it would be impractical and unnecessary. The Federation 

claimed that where a regulatory requirement does not respond to a real 

need, it can negatively impact a flight test. XCOR commented that 

members of a rocket engine development team will likely serve as flight 

test engineers on some test flights to permit them to observe engine 

operation in real time and possibly to adjust parameters of the 

propulsion system in flight. According to XCOR, these operations are 

not safety-critical because the flight is aborted if the flight test 

engineer is incapacitated, and the worst case effect is the loss of 

some data from that flight.

    Blue Origin commented that a person should not be required to have 

a second-class medical certificate if he or she is only involved in 

pushing an ignition button or initiating an abort of a vehicle 

experiencing non-nominal telemetry. TGV Rockets recommended against 

medical certification for remote operators.

    Under today's rule, crew members must complete training on how to 

perform their duties on board or on the ground so that the vehicle will 

not harm the public. They also must complete training to be able to 

perform duties in emergency operations or abort scenarios. Crew members 

who are not medically stable likely would not be able to meet training 

or performance requirements.

    The FAA agrees that requiring second-class medical certification 

for crew members who do not perform safety-critical functions is 

unnecessary. There may be missions when a flight attendant or flight 

test engineer has duties that would not affect public safety. The FAA, 

however, anticipates that there may be missions when a flight attendant 

or flight test engineer does have a safety critical role. Rather than 

specifying which crew members must have a medical certificate, the FAA 

requires that only crew members who have a safety-critical role must 

possess and carry a second-class airman medical certificate.

    Jonathan Goff suggested that alternatives to the second-class 

medical be accepted if they demonstrate an equivalent level of safety. 

The FAA has decided against this approach because a demonstration of 

equivalence would likely require the same level of examination and 

information as a medical certificate. The most straightforward approach 

is to obtain a second-class medical certificate.

    b. Recommendations for More Stringent Medical Standards. Several 

commenters recommended the FAA adopt more stringent medical standards. 

The Aerospace Medical Association commented that a second-class medical 

certificate is acceptable for suborbital flight but more stringent 

physical standards should be applied to orbital missions. It further 

posited that the examination should be conducted by a physician with 

aerospace medicine training and include screening tests consistent with 

prudent aeromedical practice and recommendations of the U.S. Preventive 

Services Task Force. Dii Aerospace Laboratories commented that 

different standards should apply to space flight because the effects of 

weightlessness and reentry are vastly different for space flight than 

for standard commercial air travel. If a candidate for a medical 

certificate had significant medical issues, he or she would not receive 

certification. The physician would refer that person to a specialist 

for further evaluation. TGV Rockets commented that a first-class 

medical certificate should be required for pilots carrying space flight 

participants.

    The FAA proposed requiring a second-class medical certificate so 

that crew members would demonstrate a basic level of health within 12 

months of launch or reentry. Recognizing that second-class medical 

certification is insufficient for spaceflight, the FAA is also 

establishing a performance



[[Page 75621]]



standard that requires the flight crew to demonstrate an ability to 

withstand the stresses of space flight sufficiently so that the vehicle 

will not harm the public. This requirement may be more stringent than 

the suggested first-class medical certificate for pilots. The stresses 

experienced in space flight may include high acceleration or 

deceleration, microgravity, and vibration. The performance standard 

provides an additional level of safety beyond basic medical 

certification because flight crew members will have to demonstrate an 

ability to perform duties in the spaceflight environment in which they 

plan to operate. As discussed in the NPRM, the FAA recognizes that 

different standards may be required for orbital and suborbital flights. 

The FAA will gather data for the development of those standards over 

time and they may be implemented on a case-by-case basis or through 

future rulemaking.

6. Crew Training

    As proposed in the NPRM, Sec.  460.5(a)(1) requires each member of 

a crew to complete training on how to carry out his or her role on 

board or on the ground so that the vehicle will not harm the public. 

Section 460.7 requires an operator to train each member of its crew and 

define standards for successful completion in accordance with Sec.  

460.5. The FAA received comments on hours of training, simulator 

training, and the training standard itself.

    Starchaser recommended a minimum number of hours of training, but 

did not provide its reasons for this suggestion. Depending on the role 

the crew members will have, different amounts of training will be 

necessary for a crew member to learn his or her role. The FAA will 

evaluate this need on a case-by-case basis during the license and 

permit process.

    Section 460.5(c)(3) requires a pilot and a remote operator to 

receive vehicle and mission-specific training for each phase of flight 

by using a simulator, a similar aircraft, flight testing, or an 

equivalent method. Mr. Leggett commented that because development of a 

vehicle would likely include a significant amount of simulation, the 

FAA should require simulator training. The benefit would be that 

training could take place in a safe environment. Dii commented that 

simulator training should be mandatory because realism is critical. Dii 

noted that a pilot needs to be able to deal with simulator sickness and 

spatial disorientation.

    The FAA does not require the use of simulators in all circumstances 

because simulators may not exist for all the proposed vehicles. While 

the use of simulators is recommended, the FAA intends to maximize the 

training approaches that are acceptable by allowing methods of training 

other than simulators.

    The FAA notes that some simulators intended for aircraft may be 

used for different launch or reentry vehicles. Section 460.7(b) 

requires that an operator ensure that either the crew-training device 

used to meet the training requirements realistically represents the 

vehicle's configuration and mission or the operator has informed the 

crew member being trained of the differences. Predesa took issue with 

this proposed requirement, noting that just because an operator knows 

of differences between the systems, does not mean that the operator can 

describe those differences and train crew accordingly. Such training 

may be possible with data available from vehicle flight tests, but, 

without such data, Predesa recommended that operators remind the crew 

of the experimental nature of flight. This is sound guidance that is 

already encompassed within the requirement.

    Alteon Training, L.L.C. (Alteon) observed that requiring that ``an 

operator must train each member of its crew and define standards for 

successful completion'' could be interpreted to mean that only the 

operator could conduct the required training. According to Alteon, an 

operator should have the ability to arrange with an approved training 

provider for the development of training programs. Alteon further 

commented that the operator would have the responsibility for oversight 

of the training provider to ensure that the training satisfied the 

FAA's regulatory requirements. The FAA agrees that an operator can have 

a contractor provide training, a concept that is already encompassed by 

Sec.  460.7(a). Ultimately, however, it will be the responsibility of 

the operator to ensure that crew members are trained properly.

    Section 460.7(d) also requires that an operator ensure that all 

required crew qualifications and training are current before launch and 

reentry. The NPRM proposed that an operator ensure currency prior to 

launch or reentry, but, as Predesa pointed out, this language 

incorrectly implied that an operator could postpone its currency check 

on a suborbital mission to just prior to reentry. Accordingly, the 

regulatory text has been changed to specify that currency checks be 

complete prior to a suborbital launch.

    At various points in the crew training requirements, the FAA 

requires operators to meet certain requirements. For example, as 

discussed above, an operator must ensure training currency. Ms. Knutson 

commented that requiring an operator to ``ensure'' something may create 

a warranty at odds with the risky nature of space travel at this stage 

in its evolution. The FAA notes that requiring an operator to ensure to 

the FAA that an event does or does not take place identifies the 

purpose of a requirement in order to impose a flexible yet enforceable 

performance standard. When the regulations require an operator to 

satisfy a performance standard, the FAA requires that an operator 

demonstrate the means by which it would satisfy that standard in its 

application for a license or permit. Grant of authorization constitutes 

approval of that approach as one that the FAA thinks will ensure 

satisfaction of the intent of the performance requirement. It is then 

up to the operator to carry out its method of compliance as described 

in its application. Because a license requires that an operator amend 

its application when it would no longer be accurate, the method an 

operator describes in its application has the same legal effect as a 

prescriptive requirement.

7. Crew Notification

    As proposed in the NPRM, Sec.  460.9 requires an operator to 

inform, in writing, any individual serving as crew that the United 

States Government has not certified the launch or reentry vehicle as 

safe for carrying flight crew or space flight participants.\10\ An 

operator must provide this notification prior to employing someone as 

crew or, if the individual is already employed by the operator, as soon 

as possible and prior to any launch in which that person will serve as 

crew.

---------------------------------------------------------------------------



    \10\ The Federation requested that the FAA create a form by 

which operators could provide this notice. The FAA will not adopt 

this suggestion in order to preserve flexibility. The required 

notifications are described in Sec.  460.9.

---------------------------------------------------------------------------



    Blue Origin commented on the logistical difficulties associated 

with the timing requirements. Blue Origin is concerned that the rule 

makes no provision for lawful notification when an existing employee is 

promoted or reassigned to a flight crew position. Section 460.9 

requires that an operator provide the notification before entering into 

any contract or other arrangement to employ an individual. A promotion 

or reassignment would constitute such ``other arrangement,'' and the 

FAA expects an operator to inform the prospective crew member of the 

required notice prior to the person accepting the new assignment.



[[Page 75622]]



    Predesa also commented that the FAA does not require the experience 

and background necessary for crew to identify design or operational 

flaws that would stop them from participating in a mission. Predesa 

appears to base this comment on a belief that the CLSAA asks the crew 

to accept the risk of space flight with full information. The FAA does 

not interpret the statute in this manner. Rather, the CSLAA and the 

FAA's attendant regulations impose a duty on a launch operator to 

inform crew of the absence of U.S. Government certification. Just as 

with a space flight participant, a crew member may not have the 

schooling and experience required to discern operational or design 

flaws. Part of the risk associated with the flights anticipated by this 

rule is the presence of unknown hazards. The notification requirement 

requires only that an operator inform the crew that risks exist, not 

that it identify all potential operational and design hazards.

8. Environmental Control and Life Support System (ECLSS)

    Section 460.11 requires that an operator provide atmospheric 

conditions adequate to sustain life and consciousness for all inhabited 

areas within a vehicle. The operator or flight crew must monitor and 

control specific atmospheric conditions in inhabited areas or 

demonstrate through the license or permit process that an alternative 

means of compliance provides an equivalent level of safety. This 

requirement reflects a change from what the FAA proposed in the NPRM in 

that the FAA will now allow an alternative means of compliance.

    Blue Origin suggested that the ECLSS requirements not be applied to 

short suborbital flights, such as those that are ten to twenty minutes. 

The FAA notes that the vehicle's atmospheric conditions have to last 

from the time the cabin is sealed from the external environment until 

it is opened. When humans are in a closed environment and dependent 

upon manmade life support systems, a failure to monitor or control the 

environment even for a short duration could lead to a loss of life or 

injury. The FAA also understands, however, that some of the atmospheric 

constituents and conditions may not change significantly in a short 

duration flight, and the ECLSS for a suborbital mission typically will 

not be as complex as one for an orbital mission. Therefore, the FAA 

will continue to require the operator or flight crew to monitor and 

control atmospheric conditions in inhabited areas but will allow the 

operator to show an alternate means of compliance that demonstrates an 

equivalent level of safety.

    a. Requiring Both Monitoring and Control of Atmospheric Conditions 

or Requiring Only Control. The Federation commented that not every life 

support system must be both monitored and controlled. For example, it 

is asserted that a dehumidification system may not require monitoring 

because a proper verification test, which may be performed on the 

ground, may show that the system has ample capacity to keep humidity 

below acceptable limits.\11\ Additionally, the Federation noted some 

atmospheric conditions need only be monitored without constant, active 

controls. Similarly, Blue Origin suggested that the FAA clarify that 

``control'' can include passive measures rather than active 

instrumentation. According to the Federation, if followed literally, 

the requirement to monitor and control every life support system would 

drive up the cost and complexity of space vehicles and, as a 

consequence, possibly drive down reliability with adverse public safety 

implications. Paragon commented that the requirement to monitor and 

control contaminants that include particulates and any harmful or 

hazardous concentrations of gases or vapors should be restricted to 

those that reasonably can be expected to build up during the course of 

the spaceflight due to metabolic or other processes occurring in the 

cabin, or to those potential contaminants for which a source is present 

in the cabin.

---------------------------------------------------------------------------



    \11\ The FAA notes that in a condensing heat exchanger, the 

separation of liquid condensate from air, and the collection of 

liquid condensate, are difficult processes in the expected 

microgravity environment, and so ground testing may not necessarily 

provide adequate verification.

---------------------------------------------------------------------------



    The FAA agrees with the Federation and Paragon that only control 

may be needed in some cases. Control of particulate contaminants in the 

atmosphere of inhabited areas is an example where the FAA would 

consider control without requiring monitoring. The passive control 

method commonly employed is to provide filters, especially high 

efficiency particulate air filters, for the cabin air return duct 

inlets. When used with a recirculation fan, filters effectively 

maintain low concentrations of particulate contaminants in the 

atmosphere for extended times, with neither rapid nor large changes 

during spaceflight operation. Consequently, monitoring of the 

atmospheric concentration of particulate contaminants may not be 

necessary, especially for a suborbital mission. In order to address 

these types of systems, the FAA will require the operator or flight 

crew to monitor and control atmospheric conditions in the inhabited 

areas as proposed in the NPRM, but will allow the operator to show an 

alternate means of compliance that will demonstrate an equivalent level 

of safety. This alternate means of compliance must be approved by the 

FAA through the license or permit process.

    b. Open-Loop System Versus Closed-Loop System. According to the 

Federation and Blue Origin, any undesirable atmospheric condition can 

be controlled with an open-loop, rather than closed-loop system.\12\ 

The FAA agrees that in some cases an atmospheric condition can be 

controlled with an open-loop system rather than a closed-loop system 

with automatic feedback from the monitoring device.

---------------------------------------------------------------------------



    \12\ A closed loop system is a control system with an active 

feedback loop. A typical example of a closed loop system is one that 

uses a thermostat to control temperature. The thermostat compares 

the actual temperature with the desired temperature; if the actual 

temperature is less than the desired temperature an actuating signal 

causes the control elements to supply more heat. An open loop system 

does not have active feedback that compares the controlled variable 

with the desired input.

---------------------------------------------------------------------------



    For example, carbon dioxide concentrations in the atmosphere in 

inhabited areas should be monitored and controlled. A carbon dioxide 

(CO2) control device, however, may operate without automatic 

feedback from the monitoring device. Without controls, CO2 

from human respiration would accumulate in the cabin atmosphere. The 

resulting increase in the concentration of CO2 would depend 

upon the habitable volume of the vehicle, the number of persons on 

board, and the overall mission duration. To avoid elevated 

CO2 concentrations, an operator must provide controls to 

remove CO2 from the atmosphere at a rate comparable to the 

respiration rate of the crew members and space flight participants. 

CO2 may be removed by using lithium hydroxide (LiOH) 

canisters. The LiOH canisters could be replaced on a schedule based on 

the number of persons on board. Under this scenario, an operator would 

monitor the carbon dioxide concentration in the cabin atmosphere, to 

verify in flight that the CO2 control devices are operating 

and are effective in avoiding elevated CO2 concentrations. 

Because any increase in CO2 concentration would occur 

slowly, and because there is a considerable margin between the expected 

concentration with controls and the threshold concentration where 

chronic physiological changes begin to appear, a closed-loop control 

would not be required. Should the crew observe increasing 

CO2 concentrations, there



[[Page 75623]]



should be sufficient time to diagnose and remedy any abnormal operation 

of the control device, or if that fails, to safely terminate the 

mission.

    Oxygen concentration in the atmosphere is another example of what 

must be monitored and controlled. Very low oxygen partial pressure 

constitutes a severe hazard, results in impaired judgment and ability 

to concentrate, shortness of breath, nausea, and fatigue, affecting the 

proper functioning of the crew, and so potentially results in 

catastrophic consequences. Control of oxygen concentration must be 

closed loop, with the automatic addition of oxygen depending upon the 

oxygen-measuring device indication.

    c. Other ECLSS-related Comments. ASE noted that the FAA did not 

propose to require protecting safety-critical equipment, such as heat-

generating avionics. ASE commented that vehicle designers must 

recognize the need to cool avionics, which may be in the space-unique 

environment of low, or no pressure. The FAA agrees on the need to 

design for adequate thermal control of safety-critical equipment, but 

the suggested requirement would not be appropriate in the context of a 

performance based rule. Design requirements for spacecraft avionics 

equipment are outside the scope of this rule. However, the FAA will 

evaluate the design, including thermal control, of safety-critical 

equipment when it reviews a license application.

    Predesa requested that the ECLSS requirements be specifically 

applied to all normal, non-normal and emergency operations, to 

emphasize the need for secondary or backup environment systems or other 

means to preserve the atmospheric conditions for the crew. The FAA may 

find that redundancy is necessary on a case-by-case basis, depending on 

a particular design, to ensure the crew's ability to protect public 

safety. At this point, the only redundancies the FAA anticipates 

requiring for all designs are specified in the regulations, including 

the requirement for an adequate redundant or secondary oxygen supply 

for the flight crew.

    ASE commented that the space environment offers unique 

environmental challenges, such as micro-meteorites and orbital debris. 

It noted dual seals will not address a hull breach by orbital debris. 

Although a low probability during suborbital flight, a hull breach is 

not impossible, and the risk dramatically increases during orbital 

flight due to the increased exposure time. ASE recommended that this 

and other space-unique hazards be addressed, at least during the 

licensing or permitting phase. The FAA acknowledges the potential for 

micro-meteorites and orbital debris, and notes that these details will 

surface through an applicant's hazard analysis and be resolved during 

the license or permit process.

    d. Guidance Plans. The FAA recognizes and anticipates that there 

will be many ECLSS designs. The ECLSS requirements are performance 

based rather than design based with prescriptive requirements. The 

following factors should be considered in determining if both 

monitoring and control of an atmospheric condition is needed and 

whether an open-loop system or closed-loop system with automatic 

feedback from the monitoring device is necessary:

     Severity of the hazards presented to humans;

     Likelihood for catastrophic or critical consequences of 

exposure;

     Potential for rapid changes in conditions;

     Potential for changes in conditions of large magnitude;

     Availability of practicable in-flight measurement 

techniques and devices;

     Access to emergency breathing equipment; and

     Mission duration.

    The FAA plans to develop an ECLSS advisory circular or guidance 

document. This document will address some of the concerns and 

suggestions of the IASE and ISLAP. The IASE and ISLAP believe that it 

is premature for the FAA to issue regulations pertaining to ECLSS at 

this time. Instead, they believe it would make more sense for the FAA 

to issue guidelines and to refine such guidelines with industry input 

over time as operators gain experience. According to the IASE and 

ISLAP, at this time there is simply too much untested diversity of 

design and proposed operation for ``one size fits all'' regulation in 

environmental control and life support areas.

9. Smoke Detection and Fire Suppression

    Section 460.13 requires an operator or crew to have the ability to 

detect smoke and suppress a cabin fire to prevent incapacitation of the 

flight crew. This requirement is adopted as proposed in the NPRM. 

Predesa inquired whether the FAA meant to imply that an operator could 

employ remote systems for fire detection and suppression. Predesa 

raised operational safety concerns regarding the security and integrity 

of telemetry to and from the vehicle. The FAA will address these issues 

during the license and permit process.

10. Human Factors

    Section 460.15 requires an operator to take necessary precautions 

to account for human factors that can affect a crew's ability to 

perform safety-critical roles. The FAA received no comments on this 

requirement, and it is adopted as proposed in the NPRM.

11. Verification Program

    Section 460.17 requires an operator to successfully verify the 

integrated performance of a vehicle's hardware and any software in an 

operational flight environment before allowing any space flight 

participant on board during a flight. Verification must include flight 

testing. Predesa requested clarification of this requirement, observing 

that the NPRM appeared to allow a space flight participant to be 

carried during first time flight testing in a different operational 

environment than what was tested. For example, an operator might flight 

test a reentry from a high altitude. Predesa inquired whether a space 

flight participant could board for the first flight test into a 

suborbital micro-gravity environment. The FAA expects that more than a 

single flight test will be required to verify the integrated 

performance of a vehicle. Because the FAA did not identify how much 

flight testing would be required, Starchaser commented that the 

requirement was open to subjective judgment and potential manipulation. 

The FAA believes that it would be premature at this time to specify the 

number of hours of flight testing needed given the variety of launch 

and reentry vehicle designs and concepts. The appropriate level of 

testing depends on many factors, including the vehicle's mission 

profile, operational restrictions, test and flight history, component 

and subsystem heritage, and design and operating margins. The FAA will 

initially determine the amount of verification and, specifically, 

flight testing of launch or reentry vehicles on a case-by-case basis 

through the license or permit process.

    A space flight participant would not be allowed on an envelope 

expansion flight, that is, a space flight participant would not be 

allowed to be carried during first time flight testing in a different 

operational environment than what was tested.

12. Crew Waiver of Claims Against U.S. Government

    Section 460.19 requires each member of a flight crew and any remote 

operator to execute a reciprocal waiver of claims with the Federal 

Aviation Administration of the Department of



[[Page 75624]]



Transportation in accordance with the requirements of part 440. The FAA 

received no comments on this requirement, and it is adopted as 

proposed.

13. Professional Engineer

    James Snead commented that the FAA should require a professional 

engineer to prepare and approve an application for an FAA license to 

launch or reenter. Mr. Snead recommended this requirement as an 

alternate means to protect public safety where there is no government 

certification.\13\ Opposing the recommendation, XCOR commented that 

FAA's oversight function should not be transferred to a private party 

because of the potential for conflicts of interest. A professional 

engineer would be paid by the applicant and thus be under subtle 

pressure to make decisions in favor of the vehicle developer. The FAA 

notes that applicants may choose to engage professional engineers, but 

will not require them.

---------------------------------------------------------------------------



    \13\ Although the licensing process differs from certification, 

the licensing process also protects public safety.

---------------------------------------------------------------------------



C. Launch and Reentry With a Space Flight Participant



    Subpart B establishes requirements for space flight participants on 

board a vehicle whose operator is licensed or permitted under this 

chapter. The subpart applies to a license or permit applicant, licensed 

or permitted operators and space flight participants.

1. Risk to Space Flight Participants

    Several commenters urged that the FAA establish requirements to 

protect space flight participants. Nicholas Leggett recommended that a 

pilot have at least one solo flight before transporting passengers. 

Starchaser advocated pressure suits for space flight participants. As 

the FAA noted in the NPRM, the CSLAA does not provide the authority to 

protect space flight participants except in certain circumstances. 49 

U.S.C. 70105(c)); 70 FR at 77270. The CSLAA only allows the FAA to 

issue regulations restricting or prohibiting design features or 

operating practices that result in a human space flight incident or a 

fatality or serious injury to space flight participants during an FAA 

authorized flight until December 23, 2012. For the next six years, the 

FAA has to wait for harm to occur or almost occur before it can impose 

restrictions. Instead, Congress requires that space flight participants 

be informed of the risks. To that end, the FAA is establishing 

notification requirements.

2. Informed Consent

    Section 460.45 requires that before receiving compensation or 

agreeing to fly a space flight participant, an operator must inform 

each space flight participant in writing about the risks of the launch 

and reentry, including the safety record of the launch or reentry 

vehicle type. For each mission, an operator must inform a space flight 

participant, in writing, of the known hazards and risks that could 

result in a serious injury, death, disability, or total or partial loss 

of physical and mental function. Although the FAA did not propose to 

require the identification of unknown hazards as a risk in the NPRM, 

the FAA is now requiring notice of unknown hazards in response to Ms. 

Knutson's comment that an operator should inform a space flight 

participant that there are also unknown hazards. The operator also must 

disclose that participation in space flight may result in death, 

serious injury, or total or partial loss of physical or mental 

function. An operator must inform each space flight participant that 

the United States Government has not certified the launch vehicle and 

any reentry vehicle as safe for carrying crew or space flight 

participants. If there is a separate operator for each vehicle, each 

operator must provide this statement for the space flight participants 

on its vehicle.

    Predesa commented that the FAA should also require disclosure of 

the fact that the law only permits the FAA to issue regulations for the 

safety of crew and space flight participants relating to vehicle design 

and operations if a serious injury or fatality occurs or nearly occurs. 

The FAA will leave it up to the operator to choose whether to disclose 

this information. The FAA does not see a need to require additional 

disclosure because the statutorily required disclosure encompasses this 

information.

    Predesa also commented that it is the duty of the space flight 

participant to research and recognize design features or operating 

practices that elevate personal risk. The FAA does not agree. A space 

flight participant may not have the training and background to conduct 

such research and analysis. The FAA expects space flight participants 

to come from all walks of life, with varying degrees of technical 

expertise and understanding. Congress requires that a space flight 

participant be informed of the risks, not that he or she acquire an 

understanding of basic engineering principles in order to understand 

that risk.

    A commenter from NASA Headquarters Office of Safety and Mission 

Assurance recommended requiring that an operator prepare a hazard 

analysis with a specific focus on keeping the crew and any participants 

alive and functioning and that defines each hazard and how it is 

mitigated. According to the commenter, a space flight participant would 

likely want to see such an analysis. The FAA notes that hazard analyses 

will be conducted by an applicant during the license or permit process. 

For example, during the license process, Scaled Composites conducted 

hazard analyses pertaining to the SpaceShipOne pilot. The analyses 

identified and characterized the potential hazards and assessed the 

risks to the pilot because his performance had implications for public 

safety given that the pilot was part of the flight safety system. 

Because Sec.  460.45(1) requires that an operator inform each space 

flight participant of the known hazards and risks that could result in 

a serious injury, death, or disability, the FAA anticipates that a 

hazard analysis focusing on keeping the space flight participant alive 

will be conducted by the operator to identify these hazards.

    The FAA also requires, under Sec.  460.45, that an operator provide 

the safety record of all launch or reentry vehicles that have carried 

one or more persons on board, including U.S. government and private 

sector vehicles. The FAA will not, as suggested by the Federation, 

require that all foreign government vehicles be included in this 

disclosure. The Federation recommended that ``all government vehicles'' 

be clarified to specifically include Soviet/Russian and Chinese 

government vehicles, and suggested that the FAA include non-U.S. 

Government vehicles in its list of vehicle accidents in order to expand 

the knowledge base. The FAA did not propose to require disclosure of 

foreign launch or reentry accidents because the information may not 

always be publicly available and its accuracy will be difficult to 

verify. However, if an operator is able to obtain accurate data 

regarding foreign launch accidents, the operator may use that data as 

part of the safety record.

    Blue Origin, the Federation, Predesa, and t/Space all suggested 

that the FAA provide a standardized summary of the historical safety 

record of all launch or reentry vehicles that have carried one or more 

persons on board for all U.S. Government vehicles for use by all 

applicants, and that the FAA maintain a standard summary of the safety 

record of all private sector vehicles on behalf of the public. The 

Federation and t/Space commented that the FAA needed to provide the 

operator with the safety record in order to ensure an



[[Page 75625]]



accurate and impartial list, used equally by all operators. Blue Origin 

commented that this approach would help avoid litigation.

    The FAA is exploring available options. The agency is considering 

developing a database on the safety record of U.S. Government and 

private sector space transport with one or more persons on-board. If it 

were possible to do so, the FAA could include foreign data. Although a 

database, whether developed by the FAA or commercially, may eventually 

be used by an operator to help fulfill the requirements of Sec.  

460.45, ultimately it is the responsibility of the launch vehicle 

operator to inform each space flight participant of that safety record.

    Section 460.45 also requires an operator to describe the safety 

record of its own vehicle to each space flight participant. The 

operator's safety record must include the number of vehicle flights, 

the number of launch and reentry accidents and human space flight 

incidents (including on the ground or in flight), and whether any 

corrective actions were taken to resolve the causes of the accident or 

human space flight incident. The FAA is revising its definitions of 

launch and reentry accident and adding the definition of human space 

flight incident to ensure that all relevant information is included in 

this safety record. For a launch that takes place with a person on 

board, launch and reentry ``accidents'' as defined in section 401.5 now 

include a fatality or serious injury to a space flight participant or 

crew. ``Human space flight incident'' means an unplanned event that 

poses a high risk of causing a serious or fatal injury to a space 

flight participant or crew.

    In the NPRM the FAA proposed to require disclosure of ``anomalies'' 

and ``failures.'' The Federation recommended that the FAA require 

disclosure of accidents rather than failures or anomalies because the 

FAA does not define anomaly or failure by regulation, and the 

Federation thought that the definitions proposed in the May 2005 

experimental permit guidelines were overly broad. According to the 

Federation, under these definitions operators could be required to 

provide an unreasonably large amount of data to space flight 

participants, and such ``information overload'' could actually decrease 

the ability of a prospective space flight participant to properly 

evaluate the risk involved.

    Likewise, t/Space commented that the terms ``anomalies'' and 

``failures'' are not adequately defined. According to t/Space, 

different operators are likely to use different definitions, with 

competitive pressures possibly influencing these definitions. It 

recommended clearer definitions to ensure a level playing field between 

operators. In response, rather than requiring the disclosure of 

failures and anomalies as proposed, paragraphs 460.45(d) and (f) 

require an operator to describe accidents and human space flight 

incidents, and the FAA now defines launch and reentry accidents to 

include a fatality or serious injury to a space flight participant or 

crew. Without these revisions, the definitions of launch and reentry 

accidents would fail to require an operator to disclose all relevant 

information.\14\ Under the current definition of reentry accident, if 

an RLV crashed inside a designated landing site, the FAA's definition 

would not encompass that event and an operator would not have to 

disclose it to a space flight participant. Another example of an 

instance where relevant information would be left undisclosed is if 

someone associated with a flight, such as a space flight participant or 

crew member, were injured or killed. That event would not be 

characterized as an accident. All of these events must now be disclosed 

under section 460.45.

---------------------------------------------------------------------------



    \14\ Section 401.5 currently defines launch accident to mean a 

fatality or serious injury (as defined in 49 CFR 830.2) to any 

person who is not associated with the flight; any damage estimated 

to exceed $25,000 to property not associated with the flight that is 

not located at the launch site or designated recovery area; an 

unplanned event occurring during the flight of a launch vehicle 

resulting in the known impact of a launch vehicle, its payload or 

any component thereof: (i) For an expendable launch vehicle (ELV), 

outside designated impact limit lines; and (ii) for an RLV, outside 

a designated landing site. Section 401.5 states that a reentry 

accident means any unplanned event occurring during the reentry of a 

reentry vehicle resulting in the known impact of the reentry 

vehicles, its payload, or any component thereof outside a designated 

reentry site; a fatality or serious injury (as defined in 49 CFR 

830.2) to any person who is not associated with the reentry; any 

damage estimated to exceed $25,000 to property not associated with 

the reentry and not located within a designated reentry site.

---------------------------------------------------------------------------



    The Federation commented that the FAA should restrict disclosure to 

the vehicle verification and commercial operations phases only, and 

should not require the disclosure of accidents occurring on the ground. 

Blue Origin requested that the FAA clarify that disclosures relate only 

to the licensed model vehicle and not to earlier developmental 

iterations of that model. It noted that, in developing a vehicle, most 

operators plan on successive versions or models. Thus, safety 

performance related to an earlier, experimental model is not directly 

relevant to a final, passenger-carrying model. Requiring disclosure of 

earlier models would discourage operators from iterative experimenting 

and testing of non-passenger models, which would undermine the goal of 

developing safer vehicles.

    The FAA agrees that an operator need only disclose its safety 

record created during and after vehicle verification performed in 

accordance with Sec.  460.17. This includes all subsequent launches and 

reentry. Earlier models that predate the verification of the vehicle 

are not part of the safety record. The FAA is including accidents 

occurring on the ground because those are relevant to the risks a space 

flight participant faces. Accordingly, if a launch vehicle exploded 

upon ignition while on the ground, the explosion would have to be 

included as part of the vehicle safety record.

    Under Sec.  460.45(e), an operator must inform a space flight 

participant that he or she may request additional information. Under 

Sec.  460.45(f) if a space flight participant asks, an operator must 

describe each accident and human space flight incident at a system 

level. Blue Origin and the Federation commented that the proposed 

requirement would effectively stop companies from being hired by 

foreign space flight participants because of conflicts with 

International Traffic in Arms Regulations (ITAR). The Federation urged 

the FAA to consider the ITAR ramifications of any proposed requirement 

for describing corrective actions to space flight participants. Blue 

Origin, the Federation and the New Mexico Office for Space 

Commercialization were all concerned that an operator would have to 

disclose information that is restricted by the ITAR.

    Blue Origin suggested a clarification to prevent a potential 

conflict between the FAA's regulations, which require disclosure to a 

space flight participant who is a foreign national, and the ITAR, which 

would restrict or prohibit disclosure to the same foreign national. 

Blue Origin suggested that the FAA establish the same standard for 

disclosure to a U.S. and a foreign national, and limit that disclosure 

obligation to only ``general systems descriptions.'' This would conform 

to the ITAR's exclusion of ``general systems descriptions'' from 

``Technical Data'' as defined in ITAR 22 CFR 120.10(a)(5). The FAA 

agrees and will require only a general system description. An operator 

only needs to disclose, for example, that a propulsion system exploded, 

not the details of how the explosion occurred.

    Blue Origin and the Federation commented that describing corrective



[[Page 75626]]



actions could require the disclosure of proprietary data and company 

secrets. The Federation commented that the intellectual property of its 

members could be placed at risk. Competitors could seek to fly on one 

another's vehicles for the purpose of obtaining data.

    The FAA agrees with the commenters that requiring a description of 

any system in detail or any corrective action could require the 

disclosure of proprietary data or technical sensitive information to 

space flight participants; therefore, the FAA will require an operator 

to disclose only accidents and human space flight incidents if a space 

flight participant asks and then only at the system level; it will not, 

as originally proposed, require an operator to also describe what 

corrective actions were taken.

    a. Space Flight Participant's Ability To Be Informed. Section 

460.45(f) requires each space flight participant to provide written 

informed consent. The consent must state that the space flight 

participant understands the risk associated with being a space flight 

participant aboard the specific vehicle and that his or her presence on 

board is voluntary. In response to comments, the FAA does not consider 

a person under the age of 18 someone who can provide informed consent.

    Commenters claimed that persons under the age of 21 do not have a 

basis for making an informed consent. James Snead pointed to age 

limitations on drinking, driving, operating heavy construction 

equipment and selling liquor. Mr. Snead felt that persons under 21 

could be more likely to view space flight as a thrill ride and not 

appreciate the risks or have the mental capacity to act responsibly 

during the excitement of flight. For the same reasons, a parent or 

guardian should not be able to provide the consent for the minor. Dii 

recommended a minimum age of 18.

    Societally, the United States has acknowledged that it is 

reasonable to place restrictions on individuals under the age of 18, 

including restrictions on their ability to legally consent. In the 

United States, a person may vote in federal elections at the age of 18. 

A person may not enlist for military service without parental consent 

until the age of 18. While some states classify a person as a minor 

until the age of 21, in many states the age of majority is 18. In no 

state is the age of majority less than 18.

    The FAA is aware that most persons under the age of 18 will not be 

able to afford the price of a ride on a rocket at the prices currently 

being discussed. Prices, however, drop over time, and the FAA agrees 

with the commenters that a minor could not be adequately informed. 

Given the risks involved, parental consent may not substitute for the 

minor's inability to be informed.

    Although not proposed in the NPRM, under Sec.  460.45(g) the FAA 

requires operators to provide each space flight participant an 

opportunity to ask questions orally to acquire a better understanding 

of the hazards and risks of the mission. In its February 11, 2005, 

guidelines, the FAA recommended that an operator provide space flight 

participants an opportunity to ask questions orally to acquire a better 

understanding of the hazards and risks of the mission. In the NPRM, the 

FAA stated that although the FAA does not now propose to require this 

recommendation, the FAA continues to consider this good practice and 

believes such opportunities should be provided. XCOR agreed both with 

the desirability of this practice and with the FAA's decision not to 

require it at this time. According to XCOR, it is difficult to phrase a 

regulation in such a way that achieves the desired effect without being 

burdensome, and therefore it should be left in the guidelines. XCOR 

further added that responsible operators, with insurance companies, 

will doubtless pay close attention to such guidelines.

    After further consideration and review of other informed consent 

practices such as those in the medical profession, the FAA believes 

that an opportunity to ask questions allows a space flight participant 

a chance to get clarification on any information that may be confusing 

or unclear. Therefore, Sec.  460.45(g) now requires that an operator 

provide each space flight participant an opportunity before flight to 

ask questions orally. In addition to receiving informed consent in 

writing from a space flight participant, this requirement serves as 

another ``cognizance test'' or affirmation that the space flight 

participant understands what he or she is getting into before embarking 

on a mission. An operator must provide an opportunity for an oral 

discussion; the discussion does not have to occur if the space flight 

participant declines it.

3. Physical Examination

    The FAA is not requiring that a space flight participant obtain a 

physical examination. The Federation agreed with this decision in its 

comments. As it discussed in the guidelines and the NPRM, the FAA 

recommends such an examination.

4. Space Flight Participant Waiver of Claims Against U.S. Government

    Section 460.49 requires each space flight participant to execute a 

reciprocal waiver of claims with the Federal Aviation Administration of 

the Department of Transportation in accordance with the requirements of 

part 440. The FAA received no comments, and adopts this requirement as 

proposed in the NPRM, with some modifications which are discussed in 

the context of part 440.

5. Space Flight Participant Training

    Section 460.51 requires an operator to train each space flight 

participant before flight on how to respond to emergency situations, 

including smoke, fire, and loss of cabin pressure. This remains 

unchanged from what was proposed in the NPRM. Mr. Snead commented that 

all space flight participants should be tested to ensure that each 

space flight participant could respond properly in emergencies. Because 

the FAA requires an applicant proposing to conduct a launch or reentry 

with a space flight participant on board to demonstrate compliance with 

this section, the FAA will review the adequacy of the operator's 

training plan, which may include testing, during the license or permit 

process.

6. Security Requirements

    The FAA requires an operator to implement security requirements to 

prevent any space flight participant from jeopardizing the safety of 

the flight crew or the public. As in the NPRM, under Sec.  460.53, a 

space flight participant may not carry on board any explosives, 

firearms, knives, or other weapons.

    XCOR inquired whether the FAA had the authority to impose security 

requirements under its statute and the U.S. Constitution. The Second 

Amendment to the Constitution provides that ``[a] well regulated 

Militia, being necessary to the security of a free State, the right of 

the people to keep and bear Arms, shall not be infringed.'' This right 

is not unfettered. Nearly every statute restricting the right to bear 

arms has been upheld. For example, in 1958, Congress made it a criminal 

offense to knowingly carry a firearm onto an airplane engaged in air 

transportation. 49 U.S.C. 46505. Additionally, nearly all courts have 

also held that the Second Amendment is a collective right, rather than 

a personal right. Therefore, despite the Second Amendment collective 

right to bear arms, the FAA has the authority to prohibit firearms on 

launch and



[[Page 75627]]



reentry vehicles for safety and security purposes.

    Planehook commented that the Transportation Security Administration 

(TSA) is charged with the responsibility for aviation security as well 

as other modes of transportation within the U.S. Therefore, according 

to Planehook, security regulations should come from the TSA. Under 

Chapter 701, the FAA is responsible for security as well as safety, and 

thus shares jurisdiction on this issue with TSA.

    The FAA will work with and rely on the expertise of the 

Transportation Security Administration and the intelligence community 

at large. Threat assessments will be conducted to determine the 

sufficiency of an operator's security plans. Although the threats may 

be the same, different vehicles may require different security plans. 

The FAA will look to the security community for developing guidelines 

in reviewing the different plans. The FAA plans to coordinate initial 

guidelines with the TSA. As the commercial activity in this sector 

expands, the TSA will likely take a larger role in developing standards 

and monitoring compliance. In the meantime, the FAA intends its 

security requirements to provide a foundation that is both effective 

and flexible.



D. Financial Responsibility and Waiver of Liability



    The FAA implements the financial responsibility requirements and 

waiver of claims required by Chapter 701 through part 440.\15\ With the 

exception of clarifications to the crew and space flight participant 

waivers of claims discussed below, the FAA only made editorial changes 

from what it proposed in the NPRM. The FAA received comments concerning 

the cross-waivers between space flight participants, the operators and 

the U.S. Government. It also received comments regarding insurance 

requirements.

---------------------------------------------------------------------------



    \15\ This rulemaking makes effective the FAA decision to combine 

parts 440 and 450 in light of the fact that they were almost 

identical, except that part 440 only applied to launch and part 450 

addressed reentry of reentry vehicles. The FAA requested comments on 

whether this would cause any concerns for those persons having to 

abide by these requirements. In supporting the FAA decision to 

combine the parts to reduce the regulatory burden on service 

providers, t/Space observed that a single part, would simplify the 

process of establishing maximum probable loss and implementing 

reciprocal waivers of claims. Rocketplane, on the other hand, 

commented that reentry conditions from orbit are more severe than 

those from a suborbital RLV launch. The FAA agrees with this 

observation, but notes that this part imposes no technical 

requirements.

---------------------------------------------------------------------------



1. Changes From What the FAA Proposed in the NPRM

    Tracey Knutson, Esq. commented that the FAA should clearly specify 

that claims arising out of the death of crew or space flight 

participants are part of what is covered by the cross-waivers. The FAA 

notes that its definition of ``bodily injury,'' 14 CFR 440.3, includes 

death, but is adopting the suggestion in the waivers of claims that 

will be signed by space flight participants and crew members. The 

courts have stressed the importance of individuals understanding what 

they are waiving. Thus, to avoid confusion, the FAA will make clear 

that the waivers encompass claims arising out of an individual's own 

death.

    Mr. James Snead commented that the reciprocal waivers of claims 

required by part 440 should identify a particular operator, the vehicle 

being flown and the manner of its use. Mr. Snead pointed out that the 

proposed appendices omitted information necessary to describe that to 

which the waivers apply. The FAA now requires that the operator, the 

vehicle, any payload, and the location of the licensed or permitted 

flight be included in the reciprocal waivers of claims. This change 

clarifies the subject of the waiver.

    This final rule contains a provision in the waivers of claims for 

crew and space flight participant that the FAA did not propose in the 

NPRM, but is necessary to carry out Congress' intent that crew and 

space flight participants not bring claims against the U.S. Government. 

The waivers require that crew members and space flight participants 

hold harmless and indemnify the United States and its agencies, 

servants, agents, subsidiaries, employees and assignees, or any of 

them, from and against liability, loss or damage arising out of claims 

brought by anyone for property damage or bodily injury, including 

death, sustained by a crew member or space flight participant, 

resulting from licensed or permitted activities.

    The crew and space flight participant must agree to this 

indemnification in order to prevent claims brought by others as well as 

on their own behalf. For example, if a crew member or space flight 

participant were to die during a licensed launch, the waivers will 

prevent that individual or his estate from bringing claims against the 

U.S. Government. Some states, however, allow a surviving spouse to 

bring separate wrongful death claims for his or her own losses arising 

out of the death of the spouse. Accordingly, the indemnification 

requirement under this final rule provides that the estate of the crew 

member or space flight participant must indemnify the U.S. Government 

for claims arising out of the bodily injury, including death, of the 

individual. This indemnification will cover all costs and fees incurred 

by the U.S. Government in defending itself against claims by the 

individual, his or her family, or estate.

    Also of note, although not proposed in the NPRM, the waivers of 

claims for crew and space flight participants now define these 

individuals to include not only themselves, but all the heirs, 

administrators, executors, assignees, next of kin, and estate of the 

individuals, and anyone who attempts to bring a claim on behalf of the 

crew member or space flight participant or for damage or harm arising 

out of that person's bodily injury, including death.

2. Waivers of Claims

    As the FAA proposed in the NPRM, Sec.  440.17(e) and (f) requires a 

space flight participant and each crew member to waive any claims he or 

she may have against the U.S. Government for participation in a launch 

or reentry in which the U.S. Government, any of its agencies, or its 

contractors and subcontractors is involved.

    Mr. James Snead commented that for the U.S. Government to require a 

crew member or space flight participant to waive claims against an 

operator could deprive the space flight participant or crew member of a 

normal expectation of customary behavior on the part of the operator by 

virtue of the normal potential for legal liability. As noted in the 

NPRM, the CSLAA and the FAA regulations do not require either a space 

flight participant or a crew member to agree to waive claims against an 

operator of a launch or reentry vehicle. The waiver is with the U.S. 

Government for its participation in a launch or reentry. In the NPRM, 

the FAA only noted that nothing in the CSLAA prevents an operator from 

making a waiver of liability a condition of an agreement between it and 

a space flight participant or crew member. 70 FR 77272 (Dec. 29, 2005). 

Neither Congress nor the FAA mandated waivers of claims against an 

operator.

    Blue Origin commented that the FAA should clarify the nature of 

government involvement triggering the need for waivers of claims. Blue 

Origin commented that FAA oversight in the form of authorizing a launch 

or reentry would not constitute government ``involvement.'' The FAA 

agrees. In that context, the FAA would be acting in its regulatory 

capacity, and would not be involved. Blue Origin also suggested,



[[Page 75628]]



however, that coordination with local FAA air traffic control and 

issuance of notices to airmen would not constitute the kind of U.S. 

Government involvement requiring crew to sign a waiver of claims. 

Instead, Blue Origin suggested, U.S. Government involvement requiring 

cross-waivers would be limited to when an operator transports a U.S. 

Government payload or personnel acting in their official capacities, or 

when launching from a U.S. Government facility. Adopting this 

suggestion would constitute a change from what the law currently 

requires. Where the U.S. Government is involved in a launch or reentry 

by providing services, the requirements of part 440 apply. For example, 

the federal launch ranges currently provide launch safety services for 

the launch of expendable launch vehicles, and the Air Traffic 

Organization manages the NAS to ensure the safety of all participants. 

Congress intended the statutory revisions of 1988 and of 2004 to reduce 

litigation expenses by requiring launch participants to assume 

responsibility for their own losses, except in cases of gross 

negligence. See Report of the Committee on Science, Space, and 

Technology, Sen. Rep. No. 639, 100th Cong., 2d Sess., 14 (1988); 

Report, H.R. Rep. No. 429, 108th Cong., 2d Sess., VII (2004). 

Accordingly, the FAA cannot adopt the interpretation suggested by Blue 

Origin.

    Sections 440.15(c)(1)(iv) and (v), and 440.17(b) and (e) require a 

licensee or permittee to submit reciprocal waivers of claims to the FAA 

for signature. Mr. Garrett Smith commented that a launch should not be 

held up because of the delay that could be caused by waiting for the 

U.S. Government to sign a reciprocal waiver of claims. To date, a 

launch has never been delayed on account of waiting for a signature 

from the U.S. Government on a cross-waiver. Timely submission of a 

cross-waiver that complies with part 440 will avoid unnecessary delay.

3. Federal Preemption

    Ms. Tracey Knutson submitted additional material to the docket in 

response to a request for clarification regarding her comments on the 

waivers of claims to be signed by crew and space flight participants. 

The materials highlight the differences in state law, including that 

many states view waivers of claims as contrary to public policy. 

Accordingly, the FAA now emphasizes that the waivers required by the 

CSLAA and part 440 are not to be construed under state law. As proposed 

in the NPRM and adopted now, the waivers provide that federal law 

applies. Chapter 701 provides, in relevant part, that a state or 

political subdivision of a state ``may not adopt or have in effect a 

law, regulation, standard, or order inconsistent with this chapter; * * 

*.'' 49 U.S.C. 70117(c)(1). In its 2004 amendments to 49 U.S.C. 70112, 

Congress required crew and space flight participants to sign waivers of 

claims against the U.S. Government. Accordingly, in order to avoid 

conflicts with any state law to the contrary, federal law must apply.

4. Insurance

    Mr. James Snead commented that the FAA should require an operator 

to provide pre-paid health and accidental death insurance for space 

flight participants. The FAA does not have authority to impose such 

requirements under its statute. Chapter 701 requires the FAA to impose 

insurance requirements for damage or harm to third parties, that is, 

the general public, and to U.S. Government property and personnel. 

Legislative history shows that Congress expected space flight 

participants to purchase insurance on their own.

5. Maximum Probable Loss

    Space Adventures and XCOR commented that the probability threshold 

for the determination of liability insurance requirements for 

commercial launch sites should be changed from 1 x 10-\7\ to 

1 x 10-\5\. Space Adventures commented that under the FAA's 

definition of maximum probable loss (MPL), a different probability 

threshold is applied for the determination of liability insurance 

requirements for government property (primarily government property at 

a government launch site) exposed to risk from a commercial launch (1 x 

10-\5\) than is applied for third party property (1 x 

10-\7\). Space Adventures noted that this can have a very 

real effect on the insurance costs to an operator operating from a 

government launch site as opposed to one operating from a commercial 

launch site. This is because the current third party threshold 

encompasses more potential for harm, likely requiring the purchase of 

more insurance.

    Space Adventures believes that a commercial launch site's property 

should also fall under the higher 1 x 10-\5\ threshold, and 

that the same threshold should extend to all other property located on 

a commercial launch site. The FAA will not adopt this suggestion 

because it is outside the scope of this rulemaking. The FAA did not 

propose this change in the NPRM, and others have not had an opportunity 

to comment. The economic effect of such a change could be significant 

and would merit a more thorough study than is available now.



III. Rulemaking Analyses



Paperwork Reduction Act



    As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 

3507(d)), the FAA submitted a copy of the new information collection 

requirements in this final rule to the Office of Management and Budget 

(OMB) for its review. Affected parties, however, do not have to comply 

with the information collection requirements in Sec. Sec.  460.5, 

460.7, 460.9, 460.19, 460.45, and 460.49 until the FAA publishes in the 

Federal Register the control number assigned by the OMB for these 

information collection requirements. Publication of the control number 

notifies the public that OMB has approved these information collection 

requirements under the Paperwork Reduction Act of 1995.



Regulatory Evaluation



    Changes to Federal regulations must undergo several economic 

analyses. First, Executive Order 12866 directs that each Federal agency 

shall propose or adopt a regulation only upon a reasoned determination 

that the benefits of the intended regulation justify its costs. Second, 

the Regulatory Flexibility Act of 1980 (Pub. L. 96-354) requires 

agencies to analyze the economic impact of regulatory changes on small 

entities. Third, the Trade Agreements Act (Pub. L. 96-39) prohibits 

agencies from setting standards that create unnecessary obstacles to 

the foreign commerce of the United States. In developing U.S. 

standards, this Trade Act requires agencies to consider international 

standards and, where appropriate, that they be the basis of U.S. 

standards. Fourth, the Unfunded Mandates Reform Act of 1995 (Pub. L. 

104-4) requires agencies to prepare a written assessment of the costs, 

benefits, and other effects of proposed or final rules that include a 

Federal mandate likely to result in the expenditure by State, local, or 

tribal governments, in the aggregate, or by the private sector, of $100 

million or more annually (adjusted for inflation with the base year of 

1995). This portion of the preamble summarizes the FAA's analysis of 

the economic impacts of this final rule.

    In conducting these analyses, FAA has determined this rule: (1) Has 

benefits that justify its costs, (2) is a ``significant regulatory 

action'' as defined in Executive Order 12866 because it raises novel 

policy issues under the legal mandate of the CSLAA,



[[Page 75629]]



and is ``significant'' as defined in DOT's Regulatory Policies and 

Procedures; (3) will not have a significant economic impact on a 

substantial number of small entities; (4) will have a neutral impact on 

international trade; and (5) will not impose an unfunded mandate on 

state, local, or tribal governments, or on the private sector. These 

analyses are available in the docket.

1. Potentially Impacted Parties

Private Sector

 Commercial operators who will be operating launch or reentry 

vehicles with crew and space flight participants on board

 Flight crew

 Remote operator

 Space flight participants

Government

 Federal Aviation Administration

2. Assumptions and Ground Rules Used in Analysis

 All monetary values are expressed in 2004 dollars

 The time horizon for the analysis is 10 years (2006 to 2016)

 Costs are discounted at 7%

 Hourly Burdened Industry Wage Rate is $69.40

 Hourly Burdened Government Wage Rate is $52.04

 The high launch forecast used in the analysis is 10,142 over 

ten years

 The low launch forecast used in the analysis is 5,081 over ten 

years

 Requirements that were fulfilled by the SpaceShipOne launches 

or that constitute prudent business practice do not impose costs

 Preparation time expended by commercial entities for specific 

requirements that might cause industry to incur costs because the new 

requirements are not current practice is as follows:



------------------------------------------------------------------------

               Requirement                 Hrs/operator     Hrs/mission

------------------------------------------------------------------------

Sec.   460.9: Informing Crew of Risk....               4               1

Sec.   460.19 (Sec.   440.17()): Crew                  4               1

 Waiver of Claims Against U.S.

 Government.............................

Sec.   460.45: Operator Informing Space              120               2

 Flight Participant of Risk.............

Sec.   460.49 (Sec.   440.17(e)): Space                4               1

 Flight Participant waiver of claims

 against U.S. Government................

------------------------------------------------------------------------



Benefits

    The rule will offer some benefit impacts that are not readily 

quantified. The principal benefit will be the assurance that the human 

commercial space flight industry understands and adheres to the current 

practices that have worked thus far to protect public safety. The rule 

will help preserve the level of public safety already achieved by 

commercial operations. Additionally, informing space flight 

participants of mission hazards and risks may help mitigate any 

behavior or reaction during space flight that would jeopardize mission 

success and consequently public safety. For example, a surprise noise 

or abrupt vehicle motion during flight could frighten an ``uninformed'' 

space flight participant, causing that person to behave or act (e.g., 

panic) in a manner that could adversely impact mission performance and 

jeopardize public safety by causing a crash or falling debris from an 

airborne explosion. Informing candidate space flight participants of 

risks may deter an individual from participating in space flight who 

otherwise would panic during flight and possibly create a situation 

that would jeopardize public safety.

Total Costs

    The rule will result in a total cost impact ranging from $1.9 to 

$3.8 million over the ten-year period from 2006 through 2015 

(undiscounted 2004 dollars). The human space flight industry will incur 

72 percent of the total costs, ranging from $1.4 million to $2.7 

million to comply with the rule. The FAA will incur 28 percent of the 

total costs, ranging from $529,000 to $1.1 million to administer the 

regulatory requirements. Costs are summarized in the following table.



    Summary of Incremental Cost Impacts Attributable to the Rule Over the Ten-Year Period, 2006 Through 2015

                                                [In 2004 dollars]

----------------------------------------------------------------------------------------------------------------

                                                           Undiscounted                   Discounted \a\

                    Category                     ---------------------------------------------------------------

                                                    Upper bound     Lower bound     Upper bound     Lower bound

----------------------------------------------------------------------------------------------------------------

Human Space Flight Industry Compliance Costs....      $2,739,149      $1,390,221      $1,728,231        $876,863

Federal Aviation Administration Administrative         1,055,579         528,830         656,445         328,890

 Costs..........................................

                                                 ---------------------------------------------------------------

    Total Costs Attributable to the Rule........       3,794,728       1,919,051       2,384,676      1,205,753

----------------------------------------------------------------------------------------------------------------

\a\ Calculated using a discount factor of seven percent over a ten-year period.



Regulatory Flexibility Determination



    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) 

establishes ``as a principle of regulatory issuance that agencies shall 

endeavor, consistent with the objective of the rule and of applicable 

statutes, to fit regulatory and informational requirements to the scale 

of the business, organizations, and governmental jurisdictions subject 

to regulation.'' To achieve that principle, the RFA requires agencies 

to consider flexible regulatory proposals, to explain the rationale for 

their actions, and to solicit comments. The RFA covers a wide-range of 

small entities, including small businesses, not-for-profit 

organizations and small governmental jurisdictions.

    Agencies must perform a review to determine whether a proposed or 

final rule will have a significant economic impact on a substantial 

number of small entities. If the agency determines that it will, the 

agency must prepare a regulatory flexibility analysis as described in 

the RFA.

    However, if an agency determines that a proposed or final rule is 

not expected to have a significant economic impact on a substantial 

number of small entities, section 605(b) of the RFA



[[Page 75630]]



provides that the head of the agency may so certify and a regulatory 

flexibility analysis is not required. The certification must include a 

statement providing the factual basis for this determination, and the 

reasoning should be clear.

    The final rule will not have a significant economic impact on a 

substantial number of small entities. Because almost all the companies 

in the fledgling industry are small, the FAA concludes that a 

substantial number of small entities in the human space flight industry 

will be affected by the rule. However, we believe that the rule will 

not have a significant impact on these entities as explained below.

    The rule will require launch and reentry operators to perform 

certain actions that, although they may be considered prudent, may not 

be performed in current practice in all instances. These actions will 

cause a space transportation operator to incur minimal additional costs 

relative to current practice.

    The North American Industry Classification System does not have a 

discrete code for commercial space transportation per se. However, it 

does have the following codes that collectively capture entities 

engaged in commercial space transportation: 336414, ``Guided Missile 

and Space Vehicle Manufacturing,'' 336415, ``Guided Missile and Space 

Vehicle Propulsion Unit and Parts Manufacturing,'' and 336419, ``Other 

Guided Missile and Space Vehicle Parts and Auxiliary Equipment 

Manufacturing.'' The Small Business Administration (SBA) has defined 

small business entities engaged in the aforementioned activities as 

those employing no more than 1,000 employees. Further, the SBA does not 

apply a size standard based on maximum annual receipts to define small 

business entities engaged in the above industries.

    A substantial number of firms entering the human space flight 

industry are very small. Because it is a nascent industry, it is 

difficult to state how many and which entities will succeed. There are 

two companies licensed to perform launches with humans on board: Scaled 

Composites, with about 135 employees, and XCOR, with about 10 

employees. Only Scaled Composites has actually launched as of the date 

of this rule; therefore, the industry currently consists of one 

company. There are about six more companies that the FAA considers 

serious candidates because they have committed financial resources, and 

another twenty companies that have expressed interest in entering the 

human spaceflight industry. The number of employees of these companies 

ranges from 5 to 40. Based on the definition of small business for the 

launch industry of entities employing no more than 1,000 employees, all 

of the above mentioned companies are small businesses with the 

exception of one: Virgin Galactic may be considered a large business 

because it is a subsidiary of Virgin Airways which has over 1,000 

employees. The FAA estimates that five to six companies will 

successfully enter the human space flight industry in the next ten 

years. We cannot yet divide this small number into categories by size; 

we only know that the vast majority of companies interested in entering 

the industry are very small (from 5 to 135 employees). We expect that 

these companies will be about the size of Scaled Composites, the only 

company thus far to have launched humans, once they start launching.

    The FAA has determined that the impacts are not significant. In 

order to make this determination, we compared the incremental cost per 

mission and the total cost to estimated revenue. It should be noted 

that all of these estimates are extremely speculative due to the 

difficulty of predicting the structure of such a nascent industry; 

however, our projections of cost as a percent of revenue is extremely 

small.

    The first input to the calculation is the number of expected 

missions, which the FAA tentatively estimates is between 5,081 and 

10,142 over the next 10 years, based on written proprietary information 

received from three companies expecting to offer launch services. To 

the extent that the industry develops more slowly than expected, these 

may be overestimates. The incremental cost per expected flight, 

however, is not significantly affected by the estimated total number of 

flights.

    The second input is the cost for the incremental safety activity 

required by this rulemaking. In the absence of this regulation, 

companies would certainly voluntarily engage in extensive testing and 

safety training; therefore the cost per mission of less than $300 does 

not represent the total investment in safety expected in this industry, 

but rather the incremental increase in safety related activity expected 

as a result of this regulation.

    Putting the two inputs together, we estimate costs to perform 

10,142 missions (upper bound) over ten years are $2,739,149 or an 

average of $270 per mission. We estimate costs to perform 5,081 

missions (lower bound) over ten years are $1,390,221 or an average of 

$274 per mission. Since the industry is in its infancy and has not yet 

begun offering commercial flights, per mission costs and revenues are 

not known. However, prospective companies have quoted ticket prices of 

$102,000 to $250,000 per seat for early flights (with some predicting 

prices could fall to about $25,000 per seat after eight or nine years). 

Regardless of seat prices, the estimated $270 per mission incremental 

compliance cost that the rule will impose will be a very small 

percentage of the revenues of a commercial operator entity offering 

human space flight and is not economically significant.

    Therefore as the FAA Administrator, I certify that this rule will 

not have a significant economic impact on a substantial number of small 

entities.



International Trade Impact Assessment



    The Trade Agreements Act of 1979 (Pub. L. 96-39) prohibits Federal 

agencies from establishing any standards or engaging in related 

activities that create unnecessary obstacles to the foreign commerce of 

the United States. Legitimate domestic objectives, such as safety, are 

not considered unnecessary obstacles. Because this rulemaking will be 

largely consistent with current or prudent practice, it will not create 

obstacles. 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 rule and 

determined that it will impose the same costs on domestic and 

international entities, and thus has a neutral trade impact.



Unfunded Mandates Assessments



    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 

(adjusted annually for inflation with the base year 1995) 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 FAA currently uses an inflation-adjusted value 

of $120.7 million in lieu of $100 million. This final rule does not 

contain such a mandate.



Executive Order 13132, Federalism



    The FAA has analyzed this rule under the principles and criteria of 

Executive Order 13132, Federalism. We have determined that this action 

would not have a substantial direct effect on the



[[Page 75631]]



States, on the relationship between the national Government and the 

States, or on the distribution of power and responsibilities among the 

various levels of government, and therefore will not have federalism 

implications.



Environmental Analysis



    FAA Order 1050.1E 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 (4i) appendix F and involves no 

extraordinary circumstances.



Regulations That Significantly Affect Energy Supply, Distribution, or 

Use



    The FAA has analyzed this rule under Executive Order 13211, Actions 

Concerning Regulations that Significantly Affect Energy Supply, 

Distribution, or Use (May 18, 2001). We have determined that it is not 

a ``significant energy action'' under the executive order because, 

although it is a ``significant regulatory action'' under Executive 

Order 12866, it is not likely to have a significant adverse effect on 

the supply, distribution, or use of energy.



List of Subjects



14 CFR Part 401



    Human space flight, Organization and functions (Government 

agencies), Space Safety, Space transportation and exploration.



14 CFR Part 415



    Human space flight, Rockets, Space safety, Space transportation and 

exploration.



14 CFR Part 431



    Human space flight, Reporting and recordkeeping requirements, 

Rockets, Space safety, Space transportation and exploration.



14 CFR Part 435



    Human space flight, Reporting and recordkeeping requirements, 

Rockets, Space safety, Space transportation and exploration.



14 CFR Part 440



    Armed forces, Federal buildings and facilities, Government 

property, Indemnity payments, Insurance, Reporting and recordkeeping 

requirements, Space transportation and exploration.



14 CFR Part 450



    Armed forces, Federal buildings and facilities, Government 

property, Human space flight, Indemnity payments, Insurance, Reporting 

and recordkeeping requirements, Space transportation and exploration.



14 CFR Part 460



    Human space flight, Reporting and recordkeeping requirements, 

Rockets, Space safety, Space transportation and exploration.



IV. The Amendment



0

In consideration of the foregoing, the Federal Aviation Administration 

will amend parts 401, 415, 431, 435, and 440; remove and reserve part 

450 of Chapter III of title 14, Code of Federal Regulations; and add 

part 460 as follows--



PART 401--ORGANIZATION AND DEFINITIONS



0

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



    Authority: 49 U.S.C. 70101-70121.





0

2. Section 401.5 is amended by revising the definitions of ``Launch 

Accident'' and ``Reentry Accident'' and adding the following 

definitions in alphabetical order to read as follows:





Sec.  401.5  Definitions.



* * * * *

    Crew means any employee or independent contractor of a licensee, 

transferee, or permittee, or of a contractor or subcontractor of a 

licensee, transferee, or permittee, who performs activities in the 

course of that employment or contract directly relating to the launch, 

reentry, or other operation of or in a launch vehicle or reentry 

vehicle that carries human beings. A crew consists of flight crew and 

any remote operator.

* * * * *

    Flight crew means crew that is on board a vehicle during a launch 

or reentry.

* * * * *

    Human space flight incident means an unplanned event that poses a 

high risk of causing a serious or fatal injury to a space flight 

participant or crew.

* * * * *

    Launch accident means

    (1) An event that causes a fatality or serious injury (as defined 

in 49 CFR 830.2) to any person who is not associated with the flight;

    (2) An event that causes damage estimated to exceed $25,000 to 

property not associated with the flight that is not located at the 

launch site or designated recovery area;

    (3) An unplanned event occurring during the flight of a launch 

vehicle resulting in the impact of a launch vehicle, its payload or any 

component thereof:

    (i) For an expendable launch vehicle, outside designated impact 

limit lines; and

    (ii) For a reusable launch vehicle, outside a designated landing 

site.

    (4) For a launch that takes place with a person on board, a 

fatality or serious injury to a space flight participant or crew 

member.

* * * * *

    Operator means a holder of a license or permit under 49 U.S.C. 

Subtitle IX, chapter 701.

* * * * *

    Pilot means a flight crew member who has the ability to control, in 

real time, a launch or reentry vehicle's flight path.

* * * * *

    Reentry accident means

    (1) Any unplanned event occurring during the reentry of a reentry 

vehicle resulting in the impact of the reentry vehicle, its payload, or 

any component thereof, outside a designated reentry site;

    (2) An event that causes a fatality or serious injury (as defined 

in 49 CFR 830.2) to any person who is not associated with the reentry;

    (3) An event that causes damage estimated to exceed $25,000 to 

property not associated with the reentry and not located within a 

designated reentry site; and

    (4) For a reentry that takes place with a person on board, a 

fatality or serious injury to a space flight participant or crew 

member.

* * * * *

    Remote operator means a crew member who

    (1) Has the ability to control, in real time, a launch or reentry 

vehicle's flight path, and

    (2) Is not on board the controlled vehicle.

* * * * *

    Space flight participant means an individual, who is not crew, 

carried aboard a launch vehicle or reentry vehicle.

    Suborbital rocket means a vehicle, rocket-propelled in whole or in 

part, intended for flight on a suborbital trajectory, and the thrust of 

which is greater than its lift for the majority of the rocket-powered 

portion of its ascent.

    Suborbital trajectory means the intentional flight path of a launch 

vehicle, reentry vehicle, or any portion thereof, whose vacuum 

instantaneous



[[Page 75632]]



impact point does not leave the surface of the Earth.

* * * * *



PART 415--LAUNCH LICENSE



0

3. The authority citation for part 415 continues to read as follows:



    Authority: 49 U.S.C. 70101-70121.



Subpart A--General



0

4. Add Sec.  415.8 to read as follows:





Sec.  415.8  Human space flight.



    To obtain a launch license, an applicant proposing to conduct a 

launch with flight crew or a space flight participant on board 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.



PART 431--LAUNCH AND REENTRY OF A REUSABLE LAUNCH VEHICLE (RLV)



0

5. The authority citation for part 431 continues to read as follows:



    Authority: 49 U.S.C. 70101-70121.





0

6. Add Sec.  431.8 to read as follows:





Sec.  431.8  Human space flight.



    To obtain a license, an applicant proposing to conduct a reusable 

launch vehicle mission with flight crew or a space flight participant 

on board 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.



PART 435--REENTRY OF A REENTRY VEHICLE OTHER THAN A REUSABLE LAUNCH 

VEHICLE (RLV)



0

7. The authority citation for part 435 continues to read as follows:



    Authority: 49 U.S.C. 70101-70121.





0

8. Add Sec.  435.8 to read as follows:





Sec.  435.8  Human space flight.



    An applicant for a license to conduct a reentry with flight crew or 

a space flight participant on board the vehicle 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.



0

9. Revise part 440 to read as set forth below:



PART 440--FINANCIAL RESPONSIBILITY



Subpart A--Financial Responsibility for Licensed and Permitted 

Activities

Sec.

440.1 Scope of part.

440.3 Definitions.

440.5 General.

440.7 Determination of maximum probable loss.

440.9 Insurance requirements for licensed or permitted activities.

440.11 Duration of coverage for licensed launch, including 

suborbital launch, or permitted activities; modifications.

440.12 Duration of coverage for licensed reentry; modifications.

440.13 Standard conditions of insurance coverage.

440.15 Demonstration of compliance.

440.17 Reciprocal waiver of claims requirements.

440.19 United States payment of excess third-party liability claims.

Appendix A to Part 440--Information requirements for obtaining a 

maximum probable loss determination for licensed or permitted 

activities.

Appendix B to Part 440--Agreement for waiver of claims and 

assumption of responsibility for licensed activities.

Appendix C to Part 440--Agreement for waiver of claims and 

assumption of responsibility for permitted activities.

Appendix D to Part 440--Agreement for waiver of claims and 

assumption of responsibility for a crew member.

Appendix E to Part 440--Agreement for waiver of claims and 

assumption of responsibility for a space flight participant.



    Authority: 49 U.S.C. 70101-70119; 49 CFR 1.47.



Subpart A--Financial Responsibility for Licensed and Permitted 

Activities





Sec.  440.1  Scope of part.



    This part establishes financial responsibility and allocation of 

risk requirements for any launch or reentry authorized by a license or 

permit issued under this subchapter.





Sec.  440.3  Definitions.



    Except as otherwise provided in this section, any term used in this 

part and defined in 49 U.S.C. 70101-70121, or in Sec.  401.5 of this 

chapter shall have the meaning contained therein. For purposes of this 

part--

    Bodily injury means physical injury, sickness, disease, disability, 

shock, mental anguish, or mental injury sustained by any person, 

including death.

    Contractors and subcontractors means those entities that are 

involved at any level, directly or indirectly, in licensed or permitted 

activities, and includes suppliers of property and services, and the 

component manufacturers of a launch vehicle, reentry vehicle, or 

payload.

    Customer means.

    (1) Any person:

    (i) Who procures launch or reentry services from a licensee or 

permittee;

    (ii) With rights in the payload (or any part of the payload) to be 

launched or reentered by the licensee or permittee, including a 

conditional sale, lease, assignment, or transfer of rights;

    (iii) Who has placed property on board the payload for launch, 

reentry, or payload services; or

    (iv) To whom the customer has transferred its rights to the launch 

or reentry services.

    (2) A space flight participant, for the purposes of this part, is 

not a customer.

    Federal range facility means a U.S. Government-owned installation 

at which a launch or reentry takes place.

    Financial responsibility means capable of satisfying a liability 

obligation as required by 49 U.S.C. Subtitle IX, chapter 701.

    Government personnel means employees of the United States, its 

agencies, and its contractors and subcontractors, involved in launch or 

reentry services for an activity authorized by an FAA license or 

permit. Employees of the United States include members of the Armed 

Forces of the United States.

    Hazardous operations means activities, processes, and procedures 

that, because of the nature of the equipment, facilities, personnel, 

environment involved or function being performed, may result in bodily 

injury or property damage.

    Liability means a legal obligation to pay a claim for bodily injury 

or property damage resulting from a licensed or permitted activity.

    License means an authorization the FAA issues under this subchapter 

to launch or reenter a launch or reentry vehicle.

    Licensed activity means the launch of a launch vehicle or the 

reentry of a reentry vehicle conducted under a license the FAA issues.

    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, 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 that are reasonably expected to 

result from licensed or permitted activities are those that have a 

probability of occurrence of



[[Page 75633]]



no less than one in one hundred thousand.

    Permit means an authorization the FAA issues under this subchapter 

for the launch or reentry of a reusable suborbital rocket.

    Permitted activity means the launch or reentry of a reusable 

suborbital rocket conducted under a permit issued by the FAA.

    Property damage means partial or total destruction, impairment, or 

loss of tangible property, real or personal.

    Regulations mean the Commercial Space Transportation Licensing 

Regulations codified at 14 CFR Ch. III.

    Third party means

    (1) Any person other than:

    (i) The United States, any of its agencies, and its contractors and 

subcontractors involved in launch or reentry services for a licensed or 

permitted activity;

    (ii) A licensee, permittee, and its contractors and subcontractors 

involved in launch or reentry services for a licensed or permitted 

activity;

    (iii) A customer and its contractors and subcontractors involved in 

launch or reentry services for a licensed or permitted activity;

    (iv) A member of a crew; and

    (v) A space flight participant.

    (2) Government personnel, as defined in this section, are third 

parties.

    United States means the United States Government, including each of 

its agencies.





Sec.  440.5  General.



    (a) No person may commence or conduct any launch or reentry 

activity that requires a license or permit unless that person has 

demonstrated compliance with the requirements of this part.

    (b) The FAA will prescribe the amount of financial responsibility a 

licensee or permittee must obtain and any adjustments of the amount in 

a license or permit order issued concurrent with or subsequent to the 

issuance of a license or a permit.

    (c) Demonstration of financial responsibility under this part shall 

not relieve a licensee of ultimate responsibility for liability, loss, 

or damage sustained by the United States resulting from a licensed 

activity, except to the extent that:

    (1) Liability, loss, or damage sustained by the United States 

results from willful misconduct of the United States or its agents;

    (2) Any covered claim of a third party for bodily injury or 

property damage arising out of any particular licensed activity exceeds 

the amount of financial responsibility required under Sec.  440.9(c) of 

this part and does not exceed $1,500,000,000 (as adjusted for 

inflation) above such amount, and are payable pursuant to 49 U.S.C. 

70113 and Sec.  440.19 of this part. A claim of an employee of any 

entity listed in paragraphs (1)(ii) through (1)(iii) in the Third party 

definition in Sec.  440.3 of this part for bodily injury or property 

damage is not a covered claim;

    (3) A covered claim for property loss or damage exceeds the amount 

of financial responsibility required under Sec.  440.9(e) of this part 

and does not result from willful misconduct of the licensee; or

    (4) The licensee has no liability for covered claims by third 

parties for bodily injury or property damage arising out of any 

particular launch or reentry that exceeds $1,500,000,000 (as adjusted 

for inflation) above the amount of financial responsibility required 

under Sec.  440.9(c).

    (d) Demonstration of financial responsibility under this part does 

not relieve a permittee of ultimate responsibility for liability, loss, 

or damage sustained by the United States resulting from a permitted 

activity, except to the extent that:

    (1) Liability, loss, or damage sustained by the United States 

results from willful misconduct of the United States or its agents; or

    (2) A covered claim for property loss or damage to the United 

States exceeds the amount of financial responsibility required under 

Sec.  440.9(e) and does not result from willful misconduct of the 

permittee.

    (e) A licensee's or permittee's failure to comply with any 

requirement of this part may result in suspension or revocation of a 

license or permit, and subject the licensee or permittee to civil 

penalties as provided in part 405 of this chapter.





Sec.  440.7  Determination of maximum probable loss.



    (a) The FAA will determine the maximum probable loss (MPL) from 

covered claims by a third party for bodily injury or property damage, 

and the United States, its agencies, and its contractors and 

subcontractors for covered property damage or loss, resulting from a 

permitted or licensed activity. The maximum probable loss determination 

forms the basis for financial responsibility requirements issued in a 

license or permit order.

    (b) The FAA issues its determination of maximum probable loss no 

later than ninety days after a licensee or permittee has requested a 

determination and submitted all information required by the FAA to make 

the determination. The FAA will consult with Federal agencies that are 

involved in, or whose personnel or property are exposed to risk of 

damage or loss as a result of, a licensed or permitted activity before 

issuing a license or permit order prescribing financial responsibility 

requirements, and shall notify the licensee, or permittee, if 

interagency consultation may delay issuance of the MPL determination.

    (c) Appendix A of this part contains information requirements for 

obtaining a maximum probable loss determination. Any person requesting 

a determination of maximum probable loss must submit the information 

required by Appendix A, unless the FAA has waived a requirement. In 

lieu of submitting required information, a person requesting a maximum 

probable loss determination may designate and certify certain 

information previously submitted for a prior determination as complete, 

valid, and equally applicable to its current request. The requester is 

responsible for the continuing accuracy and completeness of information 

submitted under this part and must promptly report any changes in 

writing.

    (d) The FAA will amend a determination of maximum probable loss 

required under this section at any time prior to completion of licensed 

or permitted activities as warranted by supplementary information 

provided to or obtained by the FAA after the MPL determination is 

issued. Any change in financial responsibility requirements as a result 

of an amended MPL determination shall be set forth in a license or 

permit order.

    (e) The FAA may make a determination of maximum probable loss at 

any time other than as set forth in paragraph (b) of this section upon 

request by any person.





Sec.  440.9  Insurance requirements for licensed or permitted 

activities.



    (a) As a condition of each license or permit, a licensee or 

permittee must comply with all insurance requirements of this section 

and of a license or permit issued by the FAA, or otherwise demonstrate 

the required amount of financial responsibility.

    (b) A licensee or permittee must obtain and maintain in effect a 

policy or policies of liability insurance, in an amount determined by 

the FAA under paragraph (c) of this section, that protects the 

following persons as additional insureds to the extent of their 

respective potential liabilities against covered claims by a third 

party for bodily injury or property damage resulting from a licensed or 

permitted activity:



[[Page 75634]]



    (1) The licensee or permittee, its customer, and their respective 

contractors and subcontractors, and the employees of each, involved in 

a licensed or permitted activity;

    (2) The United States, its agencies, and its contractors and 

subcontractors involved in a licensed or permitted activity; and

    (3) Government personnel.

    (c) The FAA will prescribe for each licensee or permittee the 

amount of insurance required to compensate the total of covered third-

party claims for bodily injury or property damage resulting from a 

licensed or permitted activity in connection with any particular launch 

or reentry. A covered third-party claim includes a claim by the United 

States, its agencies, and its contractors and subcontractors for damage 

or loss to property other than property for which insurance is required 

under paragraph (d) of this section. The amount of insurance required 

is based upon the FAA's determination of maximum probable loss; 

however, it will not exceed the lesser of:

    (1) $500 million; or

    (2) The maximum liability insurance available on the world market 

at a reasonable cost, as determined by the FAA.

    (d) The licensee or permittee must obtain and maintain in effect a 

policy or policies of insurance, in an amount determined by the FAA 

under paragraph (e) of this section, that covers claims by the United 

States, its agencies, and its contractors and subcontractors involved 

in a licensed or permitted activity for property damage or loss 

resulting from a licensed or permitted activity. Property covered by 

this insurance must include all property owned, leased, or occupied by, 

or within the care, custody, or control of, the United States and its 

agencies, and its contractors and subcontractors involved in a licensed 

or permitted activity, at a Federal range facility. Insurance must 

protect the United States and its agencies, and its contractors and 

subcontractors involved in a licensed or permitted activity.

    (e) The FAA will prescribe for each licensee or permittee the 

amount of insurance required to compensate claims for property damage 

under paragraph (d) of this section resulting from a licensed or 

permitted activity in connection with any particular launch or reentry. 

The amount of insurance is based upon a determination of maximum 

probable loss; however, it will not exceed the lesser of:

    (1) $100 million; or

    (2) The maximum available on the world market at a reasonable cost, 

as determined by the FAA.

    (f) In lieu of a policy of insurance, a licensee or permittee may 

demonstrate financial responsibility in another manner meeting the 

terms and conditions for insurance of this part. The licensee or 

permittee must describe in detail the method proposed for demonstrating 

financial responsibility and how it ensures that the licensee or 

permittee is able to cover claims as required under this part.





Sec.  440.11  Duration of coverage for licensed launch, including 

suborbital launch, or permitted activities; modifications.



    (a) Insurance coverage required under Sec.  440.9, or other form of 

financial responsibility, shall attach when a licensed launch or 

permitted activity starts, and remain in full force and effect as 

follows:

    (1) Until completion of licensed launch or permitted activities at 

a launch or reentry site; and

    (2) For orbital launch, until the later of--

    (i) Thirty days following payload separation, or attempted payload 

separation in the event of a payload separation anomaly; or

    (ii) Thirty days from ignition of the launch vehicle.

    (3) For a suborbital launch, until the later of--

    (i) Motor impact and payload recovery; or

    (ii) The FAA's determination that risk to third parties and 

Government property as a result of licensed launch or permitted 

activities is sufficiently small that financial responsibility is no 

longer necessary. That determination is made through the risk analysis 

conducted before the launch to determine MPL and specified in a license 

or permit order.

    (b) Financial responsibility required under this part may not be 

replaced, canceled, changed, withdrawn, or in any way modified to 

reduce the limits of liability or the extent of coverage, nor expire by 

its own terms, prior to the time specified in a license or permit 

order, unless the FAA is notified at least 30 days in advance and 

expressly approves the modification.





Sec.  440.12  Duration of coverage for licensed reentry; modifications.



    (a) For reentry, insurance coverage required under Sec.  440.9, or 

other form of financial responsibility, shall attach upon commencement 

of licensed reentry, and remain in full force and effect as follows:

    (1) For ground operations, until completion of licensed reentry at 

the reentry site; and

    (2) For other licensed reentry activities, 30 days from initiation 

of reentry flight; however, in the event of an abort that results in 

the reentry vehicle remaining on orbit, insurance shall remain in place 

until the FAA's determination that risk to third parties and Government 

property as a result of licensed reentry is sufficiently small that 

financial responsibility is no longer necessary, as determined by the 

FAA through the risk analysis conducted to determine MPL and specified 

in a license order.

    (b) Financial responsibility required under this part may not be 

replaced, canceled, changed, withdrawn, or in any way modified to 

reduce the limits of liability or the extent of coverage, nor expire by 

its own terms, prior to the time specified in a license order, unless 

the FAA is notified at least 30 days in advance and expressly approves 

the modification.





Sec.  440.13  Standard conditions of insurance coverage.



    (a) Insurance obtained under Sec.  440.9 must comply with each of 

the following terms and conditions of coverage:

    (1) Bankruptcy or insolvency of an insured, including any 

additional insured, shall not relieve an insurer of any of its 

obligations under any policy.

    (2) Policy limits shall apply separately to each occurrence and, 

for each occurrence to the total of claims arising out of a licensed or 

permitted activity in connection with any particular launch or reentry.

    (3) Except as provided in this section, each policy must pay claims 

from the first dollar of loss, without regard to any deductible, to the 

limits of the policy. A licensee or permittee may obtain a policy 

containing a deductible amount if the amount of the deductible is 

placed in an escrow account or otherwise demonstrated to be 

unobligated, unencumbered funds of the licensee or permittee, available 

to compensate claims at any time claims may arise.

    (4) No policy may be invalidated by any action or inaction of the 

licensee or permittee or any additional insured, even by nonpayment by 

the licensee or permittee of the policy premium, and each policy must 

insure the licensee or permittee and each additional insured regardless 

of any breach or violation of any warranties, declarations, or 

conditions contained in the policies by the licensee or permittee or 

any additional insured (other than a breach or violation by the 

licensee, permittee or an additional insured, and then only as



[[Page 75635]]



against that licensee, permittee or additional insured).

    (5) Each exclusion from coverage must be specified.

    (6) Insurance shall be primary without right of contribution from 

any other insurance that is carried by the licensee or permittee or any 

additional insured.

    (7) Each policy must expressly provide that all of its provisions, 

except the policy limits, operate in the same manner as if there were a 

separate policy with and covering the licensee or permittee and each 

additional insured.

    (8) Each policy must be placed with an insurer of recognized 

reputation and responsibility that either:

    (i) Is licensed to do business in any State, territory, possession 

of the United States, or the District of Columbia; or

    (ii) Includes in each of its policies or insurance obtained under 

this part a contract clause in which the insurer agrees to submit to 

the jurisdiction of a court of competent jurisdiction within the United 

States and designates an authorized agent within the United States for 

service of legal process on the insurer.

    (9) Except as to claims resulting from the willful misconduct of 

the United States or any of its agents, the insurer shall waive any and 

all rights of subrogation against each of the parties protected by 

required insurance.

    (b) [Reserved]





Sec.  440.15  Demonstration of compliance.



    (a) A licensee or permittee must submit to the FAA evidence of 

financial responsibility and compliance with allocation of risk 

requirements under this part, as follows, unless a license or permit 

order specifies otherwise due to the proximity of the intended date for 

commencement of licensed or permitted activities:

    (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;

    (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;

    (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; 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.

    (b) Upon a complete demonstration of compliance with financial 

responsibility and allocation of risk requirements under this part, the 

requirements of this part shall preempt each and any provision in any 

agreement between the licensee or permittee and an agency of the United 

States governing access to or use of United States launch or reentry 

property or launch or reentry services for a licensed or permitted 

activity which addresses financial responsibility, allocation of risk 

and related matters covered by 49 U.S.C. 70112, 70113.

    (c) A licensee or permittee must demonstrate compliance as follows:

    (1) The licensee or permittee must provide proof of the existence 

of the insurance required by Sec.  440.9 by:

    (i) Certifying to the FAA that it has obtained insurance in 

compliance with the requirements of this part and any applicable 

license or permit order;

    (ii) Filing with the FAA one or more certificates of insurance 

evidencing insurance coverage by one or more insurers under a currently 

effective and properly endorsed policy or policies of insurance, 

applicable to a licensed or permitted activity, on terms and conditions 

and in amounts prescribed under this part, and specifying policy 

exclusions;

    (iii) In the event of any policy exclusions or limitations of 

coverage that may be considered usual under Sec.  440.19(c), or for 

purposes of implementing the Government's waiver of claims for property 

damage under 49 U.S.C. 70112(b)(2), certifying that insurance covering 

the excluded risks is not commercially available at reasonable cost; 

and

    (iv) Submitting to the FAA, for signature by the Department on 

behalf of the United States Government, the waiver of claims and 

assumption of responsibility agreement required by Sec.  440.17(c), 

executed by the licensee or permittee and its customer.

    (v) Submitting to the FAA, for signature by the Department on 

behalf of the United States Government, an agreement to waive claims 

and assume responsibility required by Sec.  440.17(e), executed by each 

space flight participant.

    (vi) Submitting to the FAA, for signature by the Department on 

behalf of the United States Government, an agreement to waive claims 

and assume responsibility required by Sec.  440.17(f), executed by each 

member of the crew.

    (2) Any certification required by this section must be signed by a 

duly authorized officer of the licensee or permittee.

    (d) Each certificate of insurance required by paragraph (c)(1)(ii) 

of this section must be signed by the insurer issuing the policy and 

accompanied by an opinion of the insurance broker that the insurance 

obtained by the licensee or permittee complies with all the 

requirements for insurance of this part and any applicable license or 

permit order.

    (e) The licensee or permittee must maintain, and make available for 

inspection by the FAA upon request, all required policies of insurance 

and other documents necessary to demonstrate compliance with this part.

    (f) In the event the licensee or permittee demonstrates financial 

responsibility using means other than insurance, as provided under 

Sec.  440.9(f), the licensee or permittee must provide proof that it 

has met the requirements of this part and of a FAA issued license or 

permit order.





Sec.  440.17  Reciprocal waiver of claims requirements.



    (a) As a condition of each license or permit, the licensee or 

permittee must comply with the reciprocal waiver of claims requirements 

of this section.

    (b) The licensee or permittee shall implement a reciprocal waiver 

of claims with each of its contractors and subcontractors, each 

customer and each of the customer's contractors and subcontractors, 

under which each party waives and releases claims against all the other 

parties to the waiver and agrees to assume financial responsibility for 

property damage it sustains and for bodily injury or property damage 

sustained by its own employees, and to hold harmless and indemnify each 

other from bodily injury or property damage sustained by its employees, 

resulting from a licensed or permitted activity, regardless of fault.

    (c) For each licensed or permitted activity in which the U.S. 

Government, any agency, or its contractors and subcontractors is 

involved or where property insurance is required under Sec.  440.9(d), 

the Federal Aviation Administration of the Department of 

Transportation, the licensee or permittee, and its customer shall enter 

into a three-party reciprocal waiver of claims agreement. The three-

party reciprocal waiver of claims shall be in the form set forth in 

Appendix B of this part, for licensed activity, or Appendix C of this 

part, for permitted activity, of this part or in a form that satisfies 

the requirements.

    (d) The licensee or permittee, its customer, and the Federal 

Aviation



[[Page 75636]]



Administration of the Department of Transportation on behalf of the 

United States and its agencies but only to the extent provided in 

legislation, must agree in any waiver of claims agreement required 

under this part to indemnify another party to the agreement from claims 

by the indemnifying party's contractors and subcontractors arising out 

of the indemnifying party's failure to implement properly the waiver 

requirement.

    (e) For each licensed or permitted activity in which the U.S. 

Government, any of its agencies, or its contractors and subcontractors 

are involved, the Federal Aviation Administration of the Department of 

Transportation and each space flight participant shall enter into or 

have in place a reciprocal waiver of claims agreement in the form of 

the agreement in Appendix E of this part or that satisfies its 

requirements.

    (f) For each licensed or permitted activity in which the U.S. 

Government, any of its agencies, or its contractors and subcontractors 

is involved, the Federal Aviation Administration of the Department of 

Transportation and each crew member shall enter into or have in place a 

reciprocal waiver of claims agreement in the form of the agreement in 

Appendix D of this part or that satisfies its requirements.





Sec.  440.19  United States payment of excess third-party liability 

claims.



    (a) The United States pays successful covered claims (including 

reasonable expenses of litigation or settlement) of a third party 

against a licensee, a customer, and the contractors and subcontractors 

of the licensee and the customer, and the employees of each involved in 

licensed activities, and the contractors and subcontractors of the 

United States and its agencies, and their employees, involved in 

licensed activities to the extent provided in an appropriation law or 

other legislative authority providing for payment of claims in 

accordance with 49 U.S.C. 70113, and to the extent the total amount of 

such covered claims arising out of any particular launch or reentry:

    (1) Exceeds the amount of insurance required under Sec.  440.9(b); 

and

    (2) Is not more than $1,500,000,000 (as adjusted for inflation 

occurring after January 1, 1989) above that amount.

    (b) Payment by the United States under paragraph (a) of this 

section shall not be made for any part of such claims for which bodily 

injury or property damage results from willful misconduct by the party 

seeking payment.

    (c) The United States shall provide for payment of claims by third 

parties for bodily injury or property damage that are payable under 49 

U.S.C. 70113 and not covered by required insurance under Sec.  

440.9(b), without regard to the limitation under paragraph (a)(1) of 

this section, because of an insurance policy exclusion that is usual. A 

policy exclusion is considered usual only if insurance covering the 

excluded risk is not commercially available at reasonable rates. The 

licensee must submit a certification in accordance with Sec.  

440.15(c)(1)(iii) of this part for the United States to cover the 

claims.

    (d) Upon the expiration of the policy period prescribed in 

accordance with Sec.  440.11(a), the United States shall provide for 

payment of claims that are payable under 49 U.S.C. 70113 from the first 

dollar of loss up to $1,500,000,000 (as adjusted for inflation 

occurring after January 1, 1989).

    (e) Payment by the United States of excess third-party claims under 

49 U.S.C. 70113 shall be subject to:

    (1) Prompt notice by the licensee to the FAA that the total amount 

of claims arising out of licensed activities exceeds, or is likely to 

exceed, the required amount of financial responsibility. For each 

claim, the notice must specify the nature, cause, and amount of the 

claim or lawsuit associated with the claim, and the party or parties 

who may otherwise be liable for payment of the claim;

    (2) Participation or assistance in the defense of the claim or 

lawsuit by the United States, at its election;

    (3) Approval by the FAA of any settlement, or part of a settlement, 

to be paid by the United States; and

    (4) Approval by Congress of a compensation plan prepared by the FAA 

and submitted by the President.

    (f) The FAA will:

    (1) Prepare a compensation plan outlining the total amount of 

claims and meeting the requirements set forth in 49 U.S.C. 70113;

    (2) Recommend sources of funds to pay the claims; and

    (3) Propose legislation as required to implement the plan.

    (g) The FAA may withhold payment of a claim if it finds that the 

amount is unreasonable, unless it is the final order of a court that 

has jurisdiction over the matter.



Appendix A to Part 440--Information Requirements for Obtaining a 

Maximum Probable Loss Determination for Licensed or Permitted 

Activities



    Any person requesting a maximum probable loss determination 

shall submit the following information to the FAA, unless the FAA 

has waived a particular information requirement under 14 CFR 

440.7(c):



Part 1: Information Requirements for Licensed Launch, Including 

Suborbital Launch



I. General Information



    A. Mission description.

    1. A description of mission parameters, including:

    a. Launch trajectory;

    b. Orbital inclination; and

    c. Orbit altitudes (apogee and perigee).

    2. Flight sequence.

    3. Staging events and the time for each event.

    4. Impact locations.

    5. Identification of the launch site facility, including the 

launch complex on the site, planned date of launch, and launch 

windows.

    6. If the applicant has previously been issued a license or 

permit to conduct activities using the same vehicle from the same 

launch site, a description of any differences planned in the conduct 

of proposed activities.

    B. Launch vehicle description.

    1. General description of the launch vehicle and its stages, 

including dimensions.

    2. Description of major systems, including safety systems.

    3. Description of rocket motors and type of fuel used.

    4. Identification of all propellants to be used and their hazard 

classification under the Hazardous Materials Table, 49 CFR 172.101.

    5. Description of hazardous components.

    C. Payload.

    1. General description of the payload, including type (e.g., 

telecommunications, remote sensing), propellants, and hazardous 

components or materials, such as toxic or radioactive substances.

    D. Flight safety system.

    1. Identification of any flight safety system on the vehicle, 

including a description of operations and component location on the 

vehicle.



II. Pre-Flight Processing Operations



    A. General description of pre-flight operations including 

vehicle processing consisting of an operational flow diagram showing 

the overall sequence and location of operations, commencing with 

arrival of vehicle components at the launch site facility through 

final safety checks and countdown sequence, and designation of 

hazardous operations, as defined in 14 CFR 440.3. For purposes of 

these information requirements, payload processing, as opposed to 

integration, is not a hazardous operation.

    B. For each hazardous operation, including but not limited to 

fueling, solid rocket motor build-up, ordnance installation, 

ordnance checkout, movement of hazardous materials, and payload 

integration:

    1. Identification of location where each operation will be 

performed, including each building or facility identified by name or 

number.

    2. Identification of facilities adjacent to the location where 

each operation will be performed and therefore exposed to risk, 

identified by name or number.

    3. Maximum number of Government personnel and individuals not 

involved in



[[Page 75637]]



licensed activities who may be exposed to risk during each 

operation. For Government personnel, identification of his or her 

employer.

    4. Identification of launch site policies or requirements 

applicable to the conduct of operations.



III. Flight Operations



    A. Identification of launch site facilities exposed to risk 

during licensed flight.

    B. Identification of accident failure scenarios, probability 

assessments for each, and estimation of risks to Government 

personnel, individuals not involved in licensed activities, and 

Government property, due to property damage or bodily injury. The 

estimation of risks for each scenario shall take into account the 

number of such individuals at risk as a result of lift-off and 

flight of a launch vehicle (on-range, off-range, and down-range) and 

specific, unique facilities exposed to risk. Scenarios shall cover 

the range of launch trajectories, inclinations and orbits for which 

authorization is sought in the license application.

    C. On-orbit risk analysis assessing risks posed by a launch 

vehicle to operational satellites.

    D. Reentry risk analysis assessing risks to Government personnel 

and individuals not involved in licensed activities as a result of 

reentering debris or reentry of the launch vehicle or its 

components.

    E. Trajectory data as follows: Nominal and 3-sigma lateral 

trajectory data in x, y, z and x (dot), y (dot), z (dot) coordinates 

in one-second intervals, data to be pad-centered with x being along 

the initial launch azimuth and continuing through impact for 

suborbital flights, and continuing through orbital insertion or the 

end of powered flight for orbital flights.

    F. Tumble-turn data for guided vehicles only, as follows: For 

vehicles with gimbaled nozzles, tumble turn data with zeta angles 

and velocity magnitudes stated. A separate table is required for 

each combination of fail times (every two to four seconds), and 

significant nozzle angles (two or more small angles, generally 

between one and five degrees).

    G. Identification of debris lethal areas and the projected 

number and ballistic coefficient of fragments expected to result 

from flight termination, initiated either by command or self-

destruct mechanism, for lift-off, land overflight, and reentry.



IV. Post-Flight Processing Operations



    A. General description of post-flight ground operations 

including overall sequence and location of operations for removal of 

vehicle components and processing equipment from the launch site 

facility and for handling of hazardous materials, and designation of 

hazardous operations.

    B. Identification of all facilities used in conducting post-

flight processing operations.

    C. For each hazardous operation:

    1. Identification of location where each operation is performed, 

including each building or facility identified by name or number.

    2. Identification of facilities adjacent to location where each 

operation is performed and exposed to risk, identified by name or 

number.

    3. Maximum number of Government personnel and individuals not 

involved in licensed launch activities that may be exposed to risk 

during each operation. For Government personnel, identification of 

his or her employer.

    4. Identification of launch site facility policies or 

requirements applicable to the conduct of operations.



Part 2: Information Requirements for Licensed Reentry



I. General Information



    A. Reentry mission description.

    1. A description of mission parameters, including:

    a. Orbital inclination; and

    b. Orbit altitudes (apogee and perigee).

    c. Reentry trajectories.

    2. Reentry flight sequences.

    3. Reentry initiation events and the time for each event.

    4. Nominal landing location, alternative landing sites and 

contingency abort sites.

    5. Identification of landing facilities, (planned date of 

reentry), and reentry windows.

    6. If the applicant has previously been issued a license or 

permit to conduct reentry activities using the same reentry vehicle 

to the same reentry site facility, a description of any differences 

planned in the conduct of proposed activities.

    B. Reentry vehicle description.

    1. General description of the reentry vehicle, including 

dimensions.

    2. Description of major systems, including safety systems.

    3. Description of propulsion system (reentry initiation system) 

and type of fuel used.

    4. Identification of all propellants to be used and their hazard 

classification under the Hazardous Materials Table, 49 CFR 172.101.

    5. Description of hazardous components.

    C. Payload.

    1. General description of any payload, including type (e.g., 

telecommunications, remote sensing), propellants, and hazardous 

components or materials, such as toxic or radioactive substances.

    D. Flight Safety System.

    1. Identification of any flight safety system on the reentry 

vehicle, including a description of operations and component 

location on the vehicle.



II. Flight Operations



    A. Identification of reentry site facilities exposed to risk 

during vehicle reentry and landing.

    B. Identification of accident failure scenarios, probability 

assessments for each, and estimation of risks to Government 

personnel, individuals not involved in licensed reentry, and 

Government property, due to property damage or bodily injury. The 

estimation of risks for each scenario shall take into account the 

number of such individuals at risk as a result of reentry (flight) 

and landing of a reentry vehicle (on-range, off-range, and down-

range) and specific, unique facilities exposed to risk. Scenarios 

shall cover the range of reentry trajectories for which 

authorization is sought.

    C. On-orbit risk analysis assessing risks posed by a reentry 

vehicle to operational satellites during reentry.

    D. Reentry risk analysis assessing risks to Government personnel 

and individuals not involved in licensed activities as a result of 

inadvertent or random reentry of the launch vehicle or its 

components.

    E. Nominal and 3-sigma dispersed trajectories in one-second 

intervals, from reentry initiation through landing or impact. 

(Coordinate system will be specified on a case-by-case basis)

    F. Three-sigma landing or impact dispersion area in downrange 

() and crossrange

    () measured from the nominal and contingency landing 

or impact target. The applicant is responsible for including all 

significant landing or impact dispersion constituents in the 

computations of landing or impact dispersion areas. The dispersion 

constituents should include, but not be limited to: Variation in 

orbital position and velocity at the reentry initiation time; 

variation in re-entry initiation time offsets, either early or late; 

variation in the bodies' ballistic coefficient; position and 

velocity variation due to winds; and variations in re-entry retro-

maneuvers.

    G. Malfunction turn data (tumble, trim) for guided 

(controllable) vehicles. The malfunction turn data shall include the 

total angle turned by the velocity vector versus turn duration time 

at one second intervals; the magnitude of the velocity vector versus 

turn duration time at one second intervals; and an indication on the 

data where the re-entry body will impact the Earth, or breakup due 

to aerodynamic loads. A malfunction turn data set is required for 

each malfunction time. Malfunction turn start times shall not exceed 

four-second intervals along the trajectory.

    H. Identification of debris casualty areas and the projected 

number and ballistic coefficient of fragments expected to result 

from each failure mode during reentry, including random reentry.



III. Post-Flight Processing Operations



    A. General description of post-flight ground operations 

including overall sequence and location of operations for removal of 

vehicle and components and processing equipment from the reentry 

site facility and for handling of hazardous materials, and 

designation of hazardous operations.

    B. Identification of all facilities used in conducting post-

flight processing operations.

    C. For each hazardous operation:

    1. Identification of location where each operation is performed, 

including each building or facility identified by name or number.

    2. Identification of facilities adjacent to location where each 

operation is performed and exposed to risk, identified by name or 

number.

    3. Maximum number of Government personnel and individuals not 

involved in licensed reentry activities who may be exposed to risk 

during each operation. For



[[Page 75638]]



Government personnel, identification of his or her employer.

    4. Identify and provide reentry site facility policies or 

requirements applicable to the conduct of operations.



Part 3: Information Requirements for Permitted Activities



    In addition to the information required in part 437 subpart B, 

an applicant for an experimental permit must provide, for each 

permitted pre-flight and post-flight operation, the following 

information to the FAA:

    A. Identification of location where each operation will be 

performed, including any U.S. Government or third party facilities 

identified by name or number.

    B. Identification of any U.S. Government or third party 

facilities adjacent to the location where each operation will be 

performed and therefore exposed to risk, identified by name or 

number.

    C. Maximum number of Government personnel and individuals not 

involved in permitted activities that may be exposed to risk during 

each operation. For Government personnel, identification of his or 

her employer.



Appendix B to Part 440--Agreement for Waiver of Claims and Assumption 

of Responsibility for Licensed Activities



Part 1--Waiver of Claims and Assumption of Responsibility for 

Licensed Launch, including Suborbital Launch



    THIS AGREEMENT is entered into this----day of--------, by and 

among [Licensee] (the ``Licensee''), [Customer] (the ``Customer'') 

and the Federal Aviation Administration of the Department of 

Transportation, on behalf of the United States Government 

(collectively, the ``Parties''), to implement the provisions of 

section 440.17(c) of the Commercial Space Transportation Licensing 

Regulations, 14 CFR Ch. III (the ``Regulations''). This agreement 

applies to the launch of [Payload] payload on a [Launch Vehicle] 

vehicle at [Location of Launch Site]. In consideration of the mutual 

releases and promises contained herein, the Parties hereby agree as 

follows:



1. Definitions



    Contractors and Subcontractors means entities described in Sec.  

440.3 of the Regulations.

    Customer means the above-named Customer on behalf of the 

Customer and any person described in Sec.  440.3 of the Regulations.

    License means License No.----issued on--------, by the Associate 

Administrator for Commercial Space Transportation, Federal Aviation 

Administration, Department of Transportation, to the Licensee, 

including all license orders issued in connection with the License.

    Licensee means the Licensee and any transferee of the Licensee 

under 49 U.S.C. Subtitle IX, ch. 701.

    United States means the United States and its agencies involved 

in Licensed Activities.

    Except as otherwise defined herein, terms used in this Agreement 

and defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space 

Launch Activities, or in the Regulations, shall have the same 

meaning as contained in 49 U.S.C. Subtitle IX, ch. 701, or the 

Regulations, respectively.



2. Waiver and Release of Claims



    (a) Licensee hereby waives and releases claims it may have 

against Customer and the United States, and against their respective 

Contractors and Subcontractors, for Property Damage it sustains and 

for Bodily Injury or Property Damage sustained by its own employees, 

resulting from Licensed Activities, regardless of fault.

    (b) Customer hereby waives and releases claims it may have 

against Licensee and the United States, and against their respective 

Contractors and Subcontractors, for Property Damage it sustains and 

for Bodily Injury or Property Damage sustained by its own employees, 

resulting from Licensed Activities, regardless of fault.

    (c) The United States hereby waives and releases claims it may 

have against Licensee and Customer, and against their respective 

Contractors and Subcontractors, for Property Damage it sustains, and 

for Bodily Injury or Property Damage sustained by its own employees, 

resulting from Licensed Activities, regardless of fault, to the 

extent that claims it would otherwise have for such damage or injury 

exceed the amount of insurance or demonstration of financial 

responsibility required under sections 440.9(c) and (e), 

respectively, of the Regulations.



3. Assumption of Responsibility



    (a) Licensee and Customer shall each be responsible for Property 

Damage it sustains and for Bodily Injury or Property Damage 

sustained by its own employees, resulting from Licensed Activities, 

regardless of fault. Licensee and Customer shall each hold harmless 

and indemnify each other, the United States, and the Contractors and 

Subcontractors of each Party, for Bodily Injury or Property Damage 

sustained by its own employees, resulting from Licensed Activities, 

regardless of fault.

    (b) The United States shall be responsible for Property Damage 

it sustains, and for Bodily Injury or Property Damage sustained by 

its own employees, resulting from Licensed Activities, regardless of 

fault, to the extent that claims it would otherwise have for such 

damage or injury exceed the amount of insurance or demonstration of 

financial responsibility required under sections 440.9(c) and (e), 

respectively, of the Regulations.



4. Extension of Assumption of Responsibility and Waiver and Release of 

Claims



    (a) Licensee shall extend the requirements of the waiver and 

release of claims, and the assumption of responsibility, hold 

harmless, and indemnification, as set forth in paragraphs 2(a) and 

3(a), respectively, to its Contractors and Subcontractors by 

requiring them to waive and release all claims they may have against 

Customer and the United States, and against the respective 

Contractors and Subcontractors of each, and to agree to be 

responsible, for Property Damage they sustain and to be responsible, 

hold harmless and indemnify Customer and the United States, and the 

respective Contractors and Subcontractors of each, for Bodily Injury 

or Property Damage sustained by their own employees, resulting from 

Licensed Activities, regardless of fault.

    (b) Customer shall extend the requirements of the waiver and 

release of claims, and the assumption of responsibility, hold 

harmless, and indemnification, as set forth in paragraphs 2(b) and 

3(a), respectively, to its Contractors and Subcontractors by 

requiring them to waive and release all claims they may have against 

Licensee and the United States, and against the respective 

Contractors and Subcontractors of each, and to agree to be 

responsible, for Property Damage they sustain and to be responsible, 

hold harmless and indemnify Licensee and the United States, and the 

respective Contractors and Subcontractors of each, for Bodily Injury 

or Property Damage sustained by their own employees, resulting from 

Licensed Activities, regardless of fault.

    (c) The United States shall extend the requirements of the 

waiver and release of claims, and the assumption of responsibility 

as set forth in paragraphs 2(c) and 3(b), respectively, to its 

Contractors and Subcontractors by requiring them to waive and 

release all claims they may have against Licensee and Customer, and 

against the respective Contractors and Subcontractors of each, and 

to agree to be responsible, for any Property Damage they sustain and 

for any Bodily Injury or Property Damage sustained by their own 

employees, resulting from Licensed Activities, regardless of fault, 

to the extent that claims they would otherwise have for such damage 

or injury exceed the amount of insurance or demonstration of 

financial responsibility required under sections 440.9(c) and (e), 

respectively, of the Regulations.



5. Indemnification



    (a) Licensee shall hold harmless and indemnify Customer and its 

directors, officers, servants, agents, subsidiaries, employees and 

assignees, or any of them, and the United States and its agencies, 

servants, agents, subsidiaries, employees and assignees, or any of 

them, from and against liability, loss or damage arising out of 

claims that Licensee's Contractors and Subcontractors may have for 

Property Damage sustained by them and for Bodily Injury or Property 

Damage sustained by their employees, resulting from Licensed 

Activities.

    (b) Customer shall hold harmless and indemnify Licensee and its 

directors, officers, servants, agents, subsidiaries, employees and 

assignees, or any of them, and the United States and its agencies, 

servants, agents, subsidiaries, employees and assignees, or any of 

them, from and against liability, loss or damage arising out of 

claims that Customer's Contractors and Subcontractors, or any person 

on whose behalf Customer enters into this Agreement, may have for 

Property Damage sustained by them and for Bodily Injury or Property 

Damage sustained by their employees, resulting from Licensed 

Activities.

    (c) To the extent provided in advance in an appropriations law 

or to the extent there is enacted additional legislative authority 

providing for the payment of claims, the



[[Page 75639]]



United States shall hold harmless and indemnify Licensee and 

Customer and their respective directors, officers, servants, agents, 

subsidiaries, employees and assignees, or any of them, from and 

against liability, loss or damage arising out of claims that 

Contractors and Subcontractors of the United States may have for 

Property Damage sustained by them, and for Bodily Injury or Property 

Damage sustained by their employees, resulting from Licensed 

Activities, to the extent that claims they would otherwise have for 

such damage or injury exceed the amount of insurance or 

demonstration of financial responsibility required under sections 

440.9(c) and (e), respectively, of the Regulations.



6. Assurances Under 49 U.S.C. 70112(e)



    Notwithstanding any provision of this Agreement to the contrary, 

Licensee shall hold harmless and indemnify the United States and its 

agencies, servants, agents, employees and assignees, or any of them, 

from and against liability, loss or damage arising out of claims for 

Bodily Injury or Property Damage, resulting from Licensed 

Activities, regardless of fault, except to the extent that: (i) As 

provided in section 7(b) of this Agreement, claims result from 

willful misconduct of the United States or its agents; (ii) claims 

for Property Damage sustained by the United States or its 

Contractors and Subcontractors exceed the amount of insurance or 

demonstration of financial responsibility required under section 

440.9(e) of the Regulations; (iii) claims by a Third Party for 

Bodily Injury or Property Damage exceed the amount of insurance or 

demonstration of financial responsibility required under section 

440.9(c) of the Regulations, and do not exceed $1,500,000,000 (as 

adjusted for inflation after January 1, 1989) above such amount, and 

are payable pursuant to the provisions of 49 U.S.C. 70113 and 

section 440.19 of the Regulations; or (iv) Licensee has no liability 

for claims exceeding $1,500,000,000 (as adjusted for inflation after 

January 1, 1989) above the amount of insurance or demonstration of 

financial responsibility required under section 440.9(c) of the 

Regulations.



7. Miscellaneous



    (a) Nothing contained herein shall be construed as a waiver or 

release by Licensee, Customer or the United States of any claim by 

an employee of the Licensee, Customer or the United States, 

respectively, including a member of the Armed Forces of the United 

States, for Bodily Injury or Property Damage, resulting from 

Licensed Activities.

    (b) Notwithstanding any provision of this Agreement to the 

contrary, any waiver, release, assumption of responsibility or 

agreement to hold harmless and indemnify herein shall not apply to 

claims for Bodily Injury or Property Damage resulting from willful 

misconduct of any of the Parties, the Contractors and Subcontractors 

of any of the Parties, and in the case of Licensee and Customer and 

the Contractors and Subcontractors of each of them, the directors, 

officers, agents and employees of any of the foregoing, and in the 

case of the United States, its agents.

    (c) In the event that more than one customer is involved in 

Licensed Activities, references herein to Customer shall apply to, 

and be deemed to include, each such customer severally and not 

jointly.

    (d) This Agreement shall be governed by and construed in 

accordance with United States Federal law.

    In witness whereof, the Parties to this Agreement have caused 

the Agreement to be duly executed by their respective duly 

authorized representatives as of the date written above.



LICENSEE



[fxsp0]By:-------------------------------------------------------------

[fxsp0]Its:------------------------------------------------------------



CUSTOMER



[fxsp0]By:-------------------------------------------------------------

[fxsp0]Its:------------------------------------------------------------



FEDERAL AVIATION ADMINISTRATION OF THE DEPARTMENT OF TRANSPORTATION ON 

BEHALF OF THE UNITED STATES GOVERNMENT



[fxsp0]By:-------------------------------------------------------------

[fxsp0]Its:------------------------------------------------------------



ASSOCIATE ADMINISTRATOR FOR COMMERCIAL SPACE TRANSPORTATION



Part 2--Waiver of Claims and Assumption of Responsibility for 

Licensed Reentry



    This Agreement is entered into this ---- day of --------, by and 

among [Licensee] (the ``Licensee''), [Customer] (the ``Customer''), 

and the Federal Aviation Administration of the Department of 

Transportation, on behalf of the United States Government 

(collectively, the ``Parties''), to implement the provisions of 

Sec.  440.17(c) of the Commercial Space Transportation Licensing 

Regulations, 14 CFR Ch. III (the ``Regulations''). This agreement 

applies to the reentry of the [Payload] payload on a [Reentry 

Vehicle] vehicle.

    In consideration of the mutual releases and promises contained 

herein, the Parties hereby agree as follows:



1. Definitions



    Contractors and Subcontractors means entities described in Sec.  

440.3 of the Regulations.

    Customer means the above-named Customer on behalf of the 

Customer and any person described in Sec.  440.3 of the Regulations.

    License means License No. ---- issued on --------, by the 

Associate Administrator for Commercial Space Transportation, Federal 

Aviation Administration, Department of Transportation, to the 

Licensee, including all license orders issued in connection with the 

License.

    Licensee means the Licensee and any transferee of the Licensee 

under 49 U.S.C. Subtitle IX, ch. 701.

    United States means the United States and its agencies involved 

in Licensed Activities.

    Except as otherwise defined herein, terms used in this Agreement 

and defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space 

Launch Activities, or in the Regulations, shall have the same 

meaning as contained in 49 U.S.C. Subtitle IX, ch. 701, or the 

Regulations, respectively.



2. Waiver and Release of Claims



    (a) Licensee hereby waives and releases claims it may have 

against Customer and the United States, and against their respective 

Contractors and Subcontractors, for Property Damage it sustains and 

for Bodily Injury or Property Damage sustained by its own employees, 

resulting from Licensed Activities, regardless of fault.

    (b) Customer hereby waives and releases claims it may have 

against Licensee and the United States, and against their respective 

Contractors and Subcontractors, for Property Damage it sustains and 

for Bodily Injury or Property Damage sustained by its own employees, 

resulting from Licensed Activities, regardless of fault.

    (c) The United States hereby waives and releases claims it may 

have against Licensee and Customer, and against their respective 

Contractors and Subcontractors, for Property Damage it sustains, and 

for Bodily Injury or Property Damage sustained by its own employees, 

resulting from Licensed Activities, regardless of fault, to the 

extent that claims it would otherwise have for such damage or injury 

exceed the amount of insurance or demonstration of financial 

responsibility required under sections 440.9(c) and (e) of the 

Regulations.



3. Assumption of Responsibility



    (a) Licensee and Customer shall each be responsible for Property 

Damage it sustains and for Bodily Injury or Property Damage 

sustained by its own employees, resulting from Licensed Activities, 

regardless of fault. Licensee and Customer shall each hold harmless 

and indemnify each other, the United States, and the Contractors and 

Subcontractors of each Party, for Bodily Injury or Property Damage 

sustained by its own employees, resulting from Licensed Activities, 

regardless of fault.

    (b) The United States shall be responsible for Property Damage 

it sustains, and for Bodily Injury or Property Damage sustained by 

its own employees, resulting from Licensed Activities, regardless of 

fault, to the extent that claims it would otherwise have for such 

damage or injury exceed the amount of insurance or demonstration of 

financial responsibility required under Sec. Sec.  440.9(c) and (e) 

of the Regulations.



4. Extension of Assumption of Responsibility and Waiver and Release of 

Claims



    (a) Licensee shall extend the requirements of the waiver and 

release of claims, and the assumption of responsibility, hold 

harmless, and indemnification, as set forth in paragraphs 2(a) and 

3(a), respectively, to its Contractors and Subcontractors by 

requiring them to waive and release all claims they may have against 

Customer and the United States, and against the respective 

Contractors and Subcontractors of each, and to agree to be 

responsible, for Property Damage they sustain and to be responsible, 

hold harmless and indemnify Customer and the United States, and the 

respective Contractors and Subcontractors of each, for Bodily Injury 

or Property Damage sustained by their own employees, resulting from 

Licensed Activities, regardless of fault.

    (b) Customer shall extend the requirements of the waiver and 

release of claims, and the



[[Page 75640]]



assumption of responsibility, hold harmless, and indemnification, as 

set forth in paragraphs 2(b) and 3(a), respectively, to its 

Contractors and Subcontractors by requiring them to waive and 

release all claims they may have against Licensee and the United 

States, and against the respective Contractors and Subcontractors of 

each, and to agree to be responsible, for Property Damage they 

sustain and to be responsible, hold harmless and indemnify Licensee 

and the United States, and the respective Contractors and 

Subcontractors of each, for Bodily Injury or Property Damage 

sustained by their own employees, resulting from Licensed 

Activities, regardless of fault.

    (c) The United States shall extend the requirements of the 

waiver and release of claims, and the assumption of responsibility 

as set forth in paragraphs 2(c) and 3(b), respectively, to its 

Contractors and Subcontractors by requiring them to waive and 

release all claims they may have against Licensee and Customer, and 

against the respective Contractors and Subcontractors of each, and 

to agree to be responsible, for any Property Damage they sustain and 

for any Bodily Injury or Property Damage sustained by their own 

employees, resulting from Licensed Activities, regardless of fault, 

to the extent that claims they would otherwise have for such damage 

or injury exceed the amount of insurance or demonstration of 

financial responsibility required under Sec. Sec.  440.9(c) and (e) 

of the Regulations.



5. Indemnification



    (a) Licensee shall hold harmless and indemnify Customer and its 

directors, officers, servants, agents, subsidiaries, employees and 

assignees, or any of them, and the United States and its agencies, 

servants, agents, subsidiaries, employees and assignees, or any of 

them, from and against liability, loss or damage arising out of 

claims that Licensee's Contractors and Subcontractors may have for 

Property Damage sustained by them and for Bodily Injury or Property 

Damage sustained by their employees, resulting from Licensed 

Activities.

    (b) Customer shall hold harmless and indemnify Licensee and its 

directors, officers, servants, agents, subsidiaries, employees and 

assignees, or any of them, and the United States and its agencies, 

servants, agents, subsidiaries, employees assignees, or any of them, 

from and against liability, loss or damage arising out of claims 

that Customer's Contractors and Subcontractors, or any person on 

whose behalf Customer enters into this Agreement, may have for 

Property Damage sustained by them and for Bodily Injury or Property 

Damage sustained by their employees, resulting from Licensed 

Activities.

    (c) To the extent provided in advance in an appropriations law 

or to the extent there is enacted additional legislative authority 

providing for the payment of claims, the United States shall hold 

harmless and indemnify Licensee and Customer and their respective 

directors, officers, servants, agents, subsidiaries, employees and 

assignees, or any of them, from and against liability, loss or 

damage arising out of claims that Contractors and Subcontractors of 

the United States may have for Property Damage sustained by them, 

and for Bodily Injury or Property Damage sustained by their 

employees, resulting from Licensed Activities, to the extent that 

claims they would otherwise have for such damage or injury exceed 

the amount of insurance or demonstration of financial responsibility 

required under Sec. Sec.  440.9(c) and (e) of the Regulations.



6. Assurances Under 49 U.S.C. 70112(e)



    Notwithstanding any provision of this Agreement to the contrary, 

Licensee shall hold harmless and indemnify the United States and its 

agencies, servants, agents, employees and assignees, or any of them, 

from and against liability, loss or damage arising out of claims for 

Bodily Injury or Property Damage, resulting from Licensed 

Activities, regardless of fault, except to the extent that: (i) As 

provided in section 7(b) of this Agreement, claims result from 

willful misconduct of the United States or its agents; (ii) claims 

for Property Damage sustained by the United States or its 

Contractors and Subcontractors exceed the amount of insurance or 

demonstration of financial responsibility required under Sec.  

440.9(e) of the Regulations; (iii) claims by a Third Party for 

Bodily Injury or Property Damage exceed the amount of insurance or 

demonstration of financial responsibility required under Sec.  

440.9(c) of the Regulations, and do not exceed $1,500,000,000 (as 

adjusted for inflation after January 1, 1989) above such amount, and 

are payable pursuant to the provisions of 49 U.S.C. 70113 and Sec.  

440.19 of the Regulations; or (iv) Licensee has no liability for 

claims exceeding $1,500,000,000 (as adjusted for inflation after 

January 1, 1989) above the amount of insurance or demonstration of 

financial responsibility required under Sec.  440.9(c) of the 

Regulations.



7. Miscellaneous



    (a) Nothing contained herein shall be construed as a waiver or 

release by Licensee, Customer or the United States of any claim by 

an employee of the Licensee, Customer or the United States, 

respectively, including a member of the Armed Forces of the United 

States, for Bodily Injury or Property Damage, resulting from 

Licensed Activities.

    (b) Notwithstanding any provision of this Agreement to the 

contrary, any waiver, release, assumption of responsibility or 

agreement to hold harmless and indemnify herein shall not apply to 

claims for Bodily Injury or Property Damage resulting from willful 

misconduct of any of the Parties, the Contractors and Subcontractors 

of any of the Parties, and in the case of Licensee and Customer and 

the Contractors and Subcontractors of each of them, the directors, 

officers, agents and employees of any of the foregoing, and in the 

case of the United States, its agents.

    (c) In the event that more than one customer is involved in 

Licensed Activities, references herein to Customer shall apply to, 

and be deemed to include, each such customer severally and not 

jointly.

    (d) This Agreement shall be governed by and construed in 

accordance with United States Federal law.

    In Witness Whereof, the Parties to this Agreement have caused 

the Agreement to be duly executed by their respective duly 

authorized representatives as of the date written above.



LICENSEE



[fxsp0]By:-------------------------------------------------------------

[fxsp0]Its:------------------------------------------------------------



CUSTOMER



[fxsp0]By:-------------------------------------------------------------

[fxsp0]Its:------------------------------------------------------------



FEDERAL AVIATION ADMINISTRATION OF THE DEPARTMENT OF TRANSPORTATION ON 

BEHALF OF THE UNITED STATES GOVERNMENT



[fxsp0]By:-------------------------------------------------------------

[fxsp0]Its:------------------------------------------------------------



ASSOCIATE ADMINISTRATOR FOR COMMERCIAL SPACE TRANSPORTATION



Appendix C to Part 440--Agreement for Waiver of Claims and Assumption 

of Responsibility for Permitted Activities



    THIS AGREEMENT is entered into this ---- day of --------, by and 

among [Permittee] (the ``Permittee''), [Customer] (the ``Customer'') 

and the Federal Aviation Administration of the Department of 

Transportation, on behalf of the United States Government 

(collectively, the ``Parties''), to implement the provisions of 

section 440.17(c) of the Commercial Space Transportation Licensing 

Regulations, 14 CFR Ch. III (the ``Regulations''). This agreement 

applies to [describe permitted activity].

    In consideration of the mutual releases and promises contained 

herein, the Parties hereby agree as follows:



1. Definitions



    Customer means the above-named Customer on behalf of the 

Customer and any person described in Sec.  440.3 of the Regulations.

    Permit means Permit No. ----issued on --------, by the Associate 

Administrator for Commercial Space Transportation, Federal Aviation 

Administration, Department of Transportation, to the Permittee, 

including all permit orders issued in connection with the Permit.

    Permittee means the holder of the Permit issued under 49 U.S.C. 

Subtitle IX, ch. 701.

    United States means the United States and its agencies involved 

in Permitted Activities.

    Except as otherwise defined herein, terms used in this Agreement 

and defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space 

Launch Activities, or in the Regulations, shall have the same 

meaning as contained in 49 U.S.C. Subtitle IX, ch. 701, or the 

Regulations, respectively.



2. Waiver and Release of Claims



    (a) Permittee hereby waives and releases claims it may have 

against Customer and the United States, and against their respective 

Contractors and Subcontractors, for Property Damage it sustains and 

for Bodily Injury or Property Damage sustained by its own employees, 

resulting from Permitted Activities, regardless of fault.

    (b) Customer hereby waives and releases claims it may have 

against Permittee and the United States, and against their 

respective Contractors and Subcontractors, for Property



[[Page 75641]]



Damage it sustains and for Bodily Injury or Property Damage 

sustained by its own employees, resulting from Permitted Activities, 

regardless of fault.

    (c) The United States hereby waives and releases claims it may 

have against Permittee and Customer, and against their respective 

Contractors and Subcontractors, for Property Damage it sustains 

resulting from Permitted Activities, regardless of fault, to the 

extent that claims it would otherwise have for such damage exceed 

the amount of insurance or demonstration of financial responsibility 

required under section 440.9(e) of the Regulations.



3. Assumption of Responsibility



    (a) Permittee and Customer shall each be responsible for 

Property Damage it sustains and for Bodily Injury or Property Damage 

sustained by its own employees, resulting from Permitted Activities, 

regardless of fault. Permittee and Customer shall each hold harmless 

and indemnify each other, the United States, and the Contractors and 

Subcontractors of each Party, for Bodily Injury or Property Damage 

sustained by its own employees, resulting from Permitted Activities, 

regardless of fault.

    (b) The United States shall be responsible for Property Damage 

it sustains, resulting from Permitted Activities, regardless of 

fault, to the extent that claims it would otherwise have for such 

damage exceed the amount of insurance or demonstration of financial 

responsibility required under section 440.9(e) of the Regulations.



4. Extension of Assumption of Responsibility and Waiver and Release of 

Claims



    (a) Permittee shall extend the requirements of the waiver and 

release of claims, and the assumption of responsibility, hold 

harmless, and indemnification, as set forth in paragraphs 2(a) and 

3(a), respectively, to its Contractors and Subcontractors by 

requiring them to waive and release all claims they may have against 

Customer and the United States, and against the respective 

Contractors and Subcontractors of each, and to agree to be 

responsible, for Property Damage they sustain and to be responsible, 

hold harmless and indemnify Customer and the United States, and the 

respective Contractors and Subcontractors of each, for Bodily Injury 

or Property Damage sustained by their own employees, resulting from 

Permitted Activities, regardless of fault.

    (b) Customer shall extend the requirements of the waiver and 

release of claims, and the assumption of responsibility, hold 

harmless, and indemnification, as set forth in paragraphs 2(b) and 

3(a), respectively, to its Contractors and Subcontractors by 

requiring them to waive and release all claims they may have against 

Permittee and the United States, and against the respective 

Contractors and Subcontractors of each, and to agree to be 

responsible, for Property Damage they sustain and to be responsible, 

hold harmless and indemnify Permittee and the United States, and the 

respective Contractors and Subcontractors of each, for Bodily Injury 

or Property Damage sustained by their own employees, resulting from 

Permitted Activities, regardless of fault.

    (c) The United States shall extend the requirements of the 

waiver and release of claims, and the assumption of responsibility 

as set forth in paragraphs 2(c) and 3(b), respectively, to its 

Contractors and Subcontractors by requiring them to waive and 

release all claims they may have against Permittee and Customer, and 

against the respective Contractors and Subcontractors of each, and 

to agree to be responsible, for any Property Damage they sustain, 

resulting from Permitted Activities, regardless of fault, to the 

extent that claims they would otherwise have for such damage exceed 

the amount of insurance or demonstration of financial responsibility 

required under section 440.9(e) of the Regulations.



5. Indemnification



    (a) Permittee shall hold harmless and indemnify Customer and its 

directors, officers, servants, agents, subsidiaries, employees and 

assignees, or any of them, and the United States and its agencies, 

servants, agents, subsidiaries, employees and assignees, or any of 

them, from and against liability, loss or damage arising out of 

claims that Permittee's Contractors and Subcontractors may have for 

Property Damage sustained by them and for Bodily Injury or Property 

Damage sustained by their employees, resulting from Permitted 

Activities.

    (b) Customer shall hold harmless and indemnify Permittee and its 

directors, officers, servants, agents, subsidiaries, employees and 

assignees, or any of them, and the United States and its agencies, 

servants, agents, subsidiaries, employees and assignees, or any of 

them, from and against liability, loss or damage arising out of 

claims that Customer's Contractors and Subcontractors, or any person 

on whose behalf Customer enters into this Agreement, may have for 

Property Damage sustained by them and for Bodily Injury or Property 

Damage sustained by their employees, resulting from Permitted 

Activities.



6. Assurances Under 49 U.S.C. 70112(e)



    Notwithstanding any provision of this Agreement to the contrary, 

Permittee shall hold harmless and indemnify the United States and 

its agencies, servants, agents, employees and assignees, or any of 

them, from and against liability, loss or damage arising out of 

claims for Bodily Injury or Property Damage, resulting from 

Permitted Activities, regardless of fault, except to the extent that 

it is provided in section 7(b) of this Agreement, except to the 

extent that claims (i) result from willful misconduct of the United 

States or its agents and (ii) for Property Damage sustained by the 

United States or its Contractors and Subcontractors exceed the 

amount of insurance or demonstration of financial responsibility 

required under section 440.9(e) of the Regulations.



7. Miscellaneous



    (a) Nothing contained herein shall be construed as a waiver or 

release by Permittee, Customer or the United States of any claim by 

an employee of the Permittee, Customer or the United States, 

respectively, including a member of the Armed Forces of the United 

States, for Bodily Injury or Property Damage, resulting from 

Permitted Activities.

    (b) Notwithstanding any provision of this Agreement to the 

contrary, any waiver, release, assumption of responsibility or 

agreement to hold harmless and indemnify herein shall not apply to 

claims for Bodily Injury or Property Damage resulting from willful 

misconduct of any of the Parties, the Contractors and Subcontractors 

of any of the Parties, and in the case of Permittee and Customer and 

the Contractors and Subcontractors of each of them, the directors, 

officers, agents and employees of any of the foregoing, and in the 

case of the United States, its agents.

    (c) In the event that more than one customer is involved in 

Permitted Activities, references herein to Customer shall apply to, 

and be deemed to include, each such customer severally and not 

jointly.

    (d) This Agreement shall be governed by and construed in 

accordance with United States Federal law.

    IN WITNESS WHEREOF, the Parties to this Agreement have caused 

the Agreement to be duly executed by their respective duly 

authorized representatives as of the date written above.



PERMITTEE



[fxsp0]By:-------------------------------------------------------------

[fxsp0]Its:------------------------------------------------------------



CUSTOMER



[fxsp0]By:-------------------------------------------------------------

[fxsp0]Its:------------------------------------------------------------



FEDERAL AVIATION ADMINISTRATION OF THE DEPARTMENT OF TRANSPORTATION ON 

BEHALF OF THE UNITED STATES GOVERNMENT



By:--------------------------------------------------------------------

Its:-------------------------------------------------------------------



ASSOCIATE ADMINISTRATOR FOR COMMERCIAL SPACE TRANSPORTATION



Appendix D to Part 440--Agreement for Waiver of Claims and Assumption 

of Responsibility for a Crew Member



    THIS AGREEMENT is entered into this ---- day of --------, by and 

among [name of Crew Member] (the ``Crew Member'') and the Federal 

Aviation Administration of the Department of Transportation, on 

behalf of the United States Government (collectively, the 

``Parties''), to implement the provisions of section 440.17(f) of 

the Commercial Space Transportation Licensing Regulations, 14 CFR 

Ch. III (the ``Regulations''). This agreement applies to the Crew 

Member's participation in activities that the FAA has authorized by 

license or permit during the Crew Member's employment with [Name of 

licensee or permittee].

    In consideration of the mutual releases and promises contained 

herein, the Parties hereby agree as follows:



1. Definitions



    Crew Member means

    (a) The above-named Crew Member,

    (b) All the heirs, administrators, executors, assignees, next of 

kin, and estate of the above-named Crew Member, and

    (c) Anyone who attempts to bring a claim on behalf of the Crew 

Member or for damage or harm arising out of the Bodily Injury, 

including Death, of the Crew Member.



[[Page 75642]]



    License/Permit means License/Permit No. -------- issued on ----

----, by the Associate Administrator for Commercial Space 

Transportation, Federal Aviation Administration, Department of 

Transportation, to the Licensee/Permittee, including all license/

permit orders issued in connection with the License/Permit.

    Licensee/Permittee means the Licensee/Permittee and any 

transferee of the Licensee under 49 U.S.C. Subtitle IX, ch. 701.

    United States means the United States and its agencies involved 

in Licensed/Permitted Activities.

    Except as otherwise defined herein, terms used in this Agreement 

and defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space 

Launch Activities, or in the Regulations, shall have the same 

meaning as contained in 49 U.S.C. Subtitle IX, ch. 701, or the 

Regulations, respectively.



2. Waiver and Release of Claims



    (a) Crew Member hereby waives and releases claims it may have 

against the United States, and against its respective Contractors 

and Subcontractors, for Bodily Injury, including Death, or Property 

Damage sustained by Crew Member, resulting from Licensed/Permitted 

Activities, regardless of fault.

    (b) The United States hereby waives and releases claims it may 

have against the Crew Member for Property Damage it sustains, and 

for Bodily Injury, including Death, or Property Damage sustained by 

its own employees, resulting from Licensed/Permitted Activities, 

regardless of fault.



3. Assumption of Responsibility



    (a) The Crew Member shall be responsible for Bodily Injury, 

including Death, or Property Damage sustained by Crew Member, 

resulting from Licensed/Permitted Activities, regardless of fault. 

The Crew Member shall hold harmless the United States, and the 

Contractors and Subcontractors of each Party, for Bodily Injury, 

including Death, or Property Damage sustained by Crew Member, 

resulting from Licensed/Permitted Activities, regardless of fault.

    (b) The United States shall be responsible for Property Damage 

it sustains, and for Bodily Injury, including Death, or Property 

Damage sustained by its own employees, resulting from Licensed 

Activities, regardless of fault, to the extent that claims it would 

otherwise have for such damage or injury exceed the amount of 

insurance or demonstration of financial responsibility required 

under sections 440.9(c) and (e), respectively, of the Regulations.

    (c) The United States shall be responsible for Property Damage 

it sustains, resulting from Permitted Activities, regardless of 

fault, to the extent that claims it would otherwise have for such 

damage exceed the amount of insurance or demonstration of financial 

responsibility required under section 440.9(e) of the Regulations.



4. Extension of Assumption of Responsibility and Waiver and Release of 

Claims



    (a) The United States shall extend the requirements of the 

waiver and release of claims, and the assumption of responsibility 

as set forth in paragraphs 2(b) and 3(b), respectively, to its 

Contractors and Subcontractors by requiring them to waive and 

release all claims they may have against Crew Member and to agree to 

be responsible, for any Property Damage the Contractors and 

Subcontractors sustain and for any Bodily Injury, including Death, 

or Property Damage sustained by their own employees, resulting from 

Licensed Activities, regardless of fault.

    (b) The United States shall extend the requirements of the 

waiver and release of claims, and the assumption of responsibility 

as set forth in paragraphs 2(b) and 3(c), respectively, to its 

Contractors and Subcontractors by requiring them to waive and 

release all claims the Contractors and Subcontractors may have 

against Crew Member and to agree to be responsible, for any Property 

Damage they sustain, resulting from Permitted Activities, regardless 

of fault.



5. Indemnification



    Crew Member shall hold harmless and indemnify the United States 

and its agencies, servants, agents, subsidiaries, employees and 

assignees, or any of them, from and against liability, loss, or 

damage arising out of claims brought by anyone for Property Damage 

or Bodily Injury, including Death, sustained by Crew Member, 

resulting from Licensed/Permitted Activities.



6. Assurances Under 49 U.S.C. 70112(e)



    Notwithstanding any provision of this Agreement to the contrary, 

Crew Member shall hold harmless the United States and its agencies, 

servants, agents, employees and assignees, or any of them, from and 

against liability, loss or damage arising out of claims for Bodily 

Injury, including Death, or Property Damage, sustained by Crew 

Member, resulting from Licensed/Permitted Activities, regardless of 

fault, except to the extent that, as provided in section 6(b) of 

this Agreement, claims result from willful misconduct of the United 

States or its agents.



7. Miscellaneous



    (a) Nothing contained herein shall be construed as a waiver or 

release by the United States of any claim by an employee of the 

United States, respectively, including a member of the Armed Forces 

of the United States, for Bodily Injury or Property Damage, 

resulting from Licensed/Permitted Activities.

    (b) Notwithstanding any provision of this Agreement to the 

contrary, any waiver, release, assumption of responsibility or 

agreement to hold harmless herein shall not apply to claims for 

Bodily Injury, including Death, or Property Damage resulting from 

willful misconduct of any of the Parties, the Contractors and 

Subcontractors of any of the Parties, and in the case of the United 

States, its agents.

    (c) This Agreement shall be governed by and construed in 

accordance with United States Federal law.

    IN WITNESS WHEREOF, the Parties to this Agreement have caused 

the Agreement to be duly executed by their respective duly 

authorized representatives as of the date written above.

    I [name of Crew Member] have read and understand this agreement 

and agree that I am bound by it.



CREW MEMBER



[fxsp0]Signature:------------------------------------------------------

[fxsp0]Printed Name:---------------------------------------------------



FEDERAL AVIATION ADMINISTRATION OF THE DEPARTMENT OF TRANSPORTATION ON 

BEHALF OF THE UNITED STATES GOVERNMENT



[fxsp0]By:-------------------------------------------------------------

[fxsp0]Its:------------------------------------------------------------



ASSOCIATE ADMINISTRATOR FOR COMMERCIAL SPACE TRANSPORTATION



Appendix E to Part 440--Agreement for Waiver of Claims and Assumption 

of Responsibility for a Space Flight Participant



    THIS AGREEMENT is entered into this ---- day of --------, by and 

among [name of Space Flight Participant] (the ``Space Flight 

Participant'') and the Federal Aviation Administration of the 

Department of Transportation, on behalf of the United States 

Government (collectively, the ``Parties''), to implement the 

provisions of section 440.17(e) of the Commercial Space 

Transportation Licensing Regulations, 14 CFR Ch. III (the 

``Regulations''). This agreement applies to Space Flight 

Participant's travel on [name of launch or reentry vehicle] of [name 

of Licensee or Permittee]. In consideration of the mutual releases 

and promises contained herein, the Parties hereby agree as follows:



1. Definitions



    Space Flight Participant means

    (a) The above-named Space Flight Participant,

    (b) All the heirs, administrators, executors, assignees, next of 

kin, and estate of the above-named Space Flight Participant , and

    (c) Anyone who attempts to bring a claim on behalf of the Space 

Flight Participant or for damage or harm arising out of the Bodily 

Injury, including Death, of the Space Flight Participant.

    License/Permit means License/Permit No.-------- issued on ------

--, by the Associate Administrator for Commercial Space 

Transportation, Federal Aviation Administration, Department of 

Transportation, to the Licensee/Permittee, including all license/

permit orders issued in connection with the License/Permit.

    Licensee/Permittee means the Licensee/Permittee and any 

transferee of the Licensee under 49 U.S.C. Subtitle IX, ch. 701.

    United States means the United States and its agencies involved 

in Licensed/Permitted Activities.

    Except as otherwise defined herein, terms used in this Agreement 

and defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space 

Launch Activities, or in the Regulations, shall have the same 

meaning as contained in 49 U.S.C. Subtitle IX, ch. 701, or the 

Regulations, respectively.



2. Waiver and Release of Claims



    (a) Space Flight Participant hereby waives and releases claims 

it may have against the United States, and against its respective 

Contractors and Subcontractors, for Bodily Injury, including Death, 

or Property Damage sustained by Space Flight Participant,



[[Page 75643]]



resulting from Licensed/Permitted Activities, regardless of fault.

    (b) The United States hereby waives and releases claims it may 

have against Space Flight Participant for Property Damage it 

sustains, and for Bodily Injury, including Death, or Property Damage 

sustained by its own employees, resulting from Licensed/Permitted 

Activities, regardless of fault.



3. Assumption of Responsibility



    (a) Space Flight Participant shall be responsible for Bodily 

Injury, including Death, or Property Damage sustained by the Space 

Flight Participant resulting from Licensed/Permitted Activities, 

regardless of fault. Space Flight Participant shall hold harmless 

the United States, and its Contractors and Subcontractors, for 

Bodily Injury, including Death, or Property Damage sustained by 

Space Flight Participant from Licensed/Permitted Activities, 

regardless of fault.

    (b) The United States shall be responsible for Property Damage 

it sustains, and for Bodily Injury, including Death, or Property 

Damage sustained by its own employees, resulting from Licensed 

Activities, regardless of fault, to the extent that claims it would 

otherwise have for such damage or injury exceed the amount of 

insurance or demonstration of financial responsibility required 

under sections 440.9(c) and (e), respectively, of the Regulations.

    (c) The United States shall be responsible for Property Damage 

it sustains, resulting from Permitted Activities, regardless of 

fault, to the extent that claims it would otherwise have for such 

damage exceed the amount of insurance or demonstration of financial 

responsibility required under section 440.9(e) of the Regulations.



4. Extension of Assumption of Responsibility and Waiver and Release of 

Claims



    (a) The United States shall extend the requirements of the 

waiver and release of claims, and the assumption of responsibility 

as set forth in paragraphs 2(b) and 3(b), respectively, to its 

Contractors and Subcontractors by requiring them to waive and 

release all claims they may have against Space Flight Participant, 

and to agree to be responsible, for any Property Damage they sustain 

and for any Bodily Injury, including Death, or Property Damage 

sustained by their own employees, resulting from Licensed 

Activities, regardless of fault.

    (b) The United States shall extend the requirements of the 

waiver and release of claims, and the assumption of responsibility 

as set forth in paragraphs 2(b) and 3(c), respectively, to its 

Contractors and Subcontractors by requiring them to waive and 

release all claims they may have against Space Flight Participant, 

and to agree to be responsible, for any Property Damage the 

Contractors and Subcontractors sustain, resulting from Permitted 

Activities, regardless of fault.



5. Indemnification



    Space Flight Participant shall hold harmless and indemnify the 

United States and its agencies, servants, agents, subsidiaries, 

employees and assignees, or any of them, from and against liability, 

loss or damage arising out of claims brought by anyone for Property 

Damage or Bodily Injury, including Death, sustained by Space Flight 

Participant, resulting from Licensed/Permitted Activities.



6. Assurances Under 49 U.S.C. 70112(e)



    Notwithstanding any provision of this Agreement to the contrary, 

Space Flight Participant shall hold harmless the United States and 

its agencies, servants, agents, employees and assignees, or any of 

them, from and against liability, loss or damage arising out of 

claims for Bodily Injury, including Death, or Property Damage, 

sustained by Space Flight Participant, resulting from Licensed/

Permitted Activities, regardless of fault, except to the extent 

that, as provided in section 6(b) of this Agreement, claims result 

from willful misconduct of the United States or its agents.



7. Miscellaneous



    (a) Nothing contained herein shall be construed as a waiver or 

release by the United States of any claim by an employee the United 

States, respectively, including a member of the Armed Forces of the 

United States, for Bodily Injury or Property Damage, resulting from 

Licensed/Permitted Activities.

    (b) Notwithstanding any provision of this Agreement to the 

contrary, any waiver, release, assumption of responsibility or 

agreement to hold harmless herein shall not apply to claims for 

Bodily Injury, including Death, or Property Damage resulting from 

willful misconduct of any of the Parties, the Contractors, 

Subcontractors, and agents of the United States, and Space Flight 

Participant.

    (c) This Agreement shall be governed by and construed in 

accordance with United States Federal law.

    IN WITNESS WHEREOF, the Parties to this Agreement have caused 

the Agreement to be duly executed by their respective duly 

authorized representatives as of the date written above.

    I [name of Space Flight Participant] have read and understand 

this agreement and agree that I am bound by it.



SPACE FLIGHT PARTICIPANT



[fxsp0]Signature:------------------------------------------------------

[fxsp0]Printed Name:---------------------------------------------------



FEDERAL AVIATION ADMINISTRATION OF THE DEPARTMENT OF TRANSPORTATION ON 

BEHALF OF THE UNITED STATES GOVERNMENT



[fxsp0]By:-------------------------------------------------------------

[fxsp0]Its:------------------------------------------------------------



ASSOCIATE ADMINISTRATOR FOR COMMERCIAL SPACE TRANSPORTATION



PART 450--[REMOVED]



0

10. Remove part 450.



0

11. Add part 460 to read as follows:



PART 460--HUMAN SPACE FLIGHT REQUIREMENTS



Subpart A--Launch and reentry with crew

Sec.

460.1 Scope.

460.3 Applicability.

460.5 Crew qualifications and training.

460.7 Operator training of crew.

460.9 Informing crew of risk.

460.11 Environmental control and life support systems.

460.13 Smoke detection and fire suppression.

460.15 Human factors.

460.17 Verification program.

460.19 Crew waiver of claims against U.S. Government.

460.20-460.40 [Reserved]

Subpart B--Launch and reentry with a space flight participant

460.41 Scope.

460.43 Applicability.

460.45 Operator informing space flight participant of risk.

460.47 [Reserved]

460.49 Space flight participant waiver of claims against U.S. 

Government.

460.51 Space flight participant training.

460.53 Security.



    Authority: 49 U.S.C. 70105.



Subpart A--Launch and reentry with crew





Sec.  460.1  Scope.



    This subpart establishes requirements for crew of a vehicle whose 

operator is licensed or permitted under this chapter.





Sec.  460.3  Applicability.



    (a) This subpart applies to:

    (1) An applicant for a license or permit under this chapter who 

proposes to have flight crew on board a vehicle or proposes to employ a 

remote operator of a vehicle with a human on board.

    (2) An operator licensed or permitted under this chapter who has 

flight crew on board a vehicle or who employs a remote operator of a 

vehicle with a human on board.

    (3) A crew member participating in an activity authorized under 

this chapter.

    (b) Each member of the crew must comply with all requirements of 

the laws of the United States that apply to crew.





Sec.  460.5  Crew qualifications and training.



    (a) Each crew member must--

    (1) Complete training on how to carry out his or her role on board 

or on the ground so that the vehicle will not harm the public; and

    (2) Train for his or her role in nominal and non-nominal 

conditions. The conditions must include--

    (i) Abort scenarios; and

    (ii) Emergency operations.

    (b) Each member of a flight crew must demonstrate an ability to 

withstand the stresses of space flight, which may include high 

acceleration or deceleration, microgravity, and



[[Page 75644]]



vibration, in sufficient condition to safely carry out his or her 

duties so that the vehicle will not harm the public.

    (c) A pilot and a remote operator must--

    (1) Possess and carry an FAA pilot certificate with an instrument 

rating.

    (2) Possess aeronautical knowledge, experience, and skills 

necessary to pilot and control the launch or reentry vehicle that will 

operate in the National Airspace System (NAS). Aeronautical experience 

may include hours in flight, ratings, and training.

    (3) Receive vehicle and mission-specific training for each phase of 

flight by using one or more of the following--

    (i) A method or device that simulates the flight;

    (ii) An aircraft whose characteristics are similar to the vehicle 

or that has similar phases of flight to the vehicle ;

    (iii) Flight testing; or

    (iv) An equivalent method of training approved by the FAA through 

the license or permit process.

    (4) Train in procedures that direct the vehicle away from the 

public in the event the flight crew abandons the vehicle during flight; 

and

    (5) Train for each mode of control or propulsion, including any 

transition between modes, such that the pilot or remote operator is 

able to control the vehicle.

    (d) A remote operator may demonstrate an equivalent level of safety 

to paragraph (c)(1) of this section through the license or permit 

process.

    (e) Each crew member with a safety-critical role must possess and 

carry an FAA second-class airman medical certificate issued in 

accordance with 14 CFR part 67, no more than 12 months prior to the 

month of launch and reentry.





Sec.  460.7  Operator training of crew.



    (a) Implementation of training. An operator must train each member 

of its crew and define standards for successful completion in 

accordance with Sec.  460.5.

    (b) Training device fidelity. An operator must

    (1) Ensure that any crew-training device used to meet the training 

requirements realistically represents the vehicle's configuration and 

mission, or

    (2) Inform the crew member being trained of the differences between 

the two.

    (c) Maintenance of training records. An operator must continually 

update the crew training to ensure that it incorporates lessons learned 

from training and operational missions. An operator must--

    (1) Track each revision and update in writing; and

    (2) Document the completed training for each crew member and 

maintain the documentation for each active crew member.

    (d) Current qualifications and training. An operator must establish 

a recurrent training schedule and ensure that all crew qualifications 

and training required by Sec.  460.5 are current before launch and 

reentry.





Sec.  460.9  Informing crew of risk.



    An operator must inform in writing any individual serving as crew 

that the United States Government has not certified the launch vehicle 

and any reentry vehicle as safe for carrying flight crew or space 

flight participants. An operator must provide this information--

    (a) Before entering into any contract or other arrangement to 

employ that individual; or

    (b) For any crew member employed as of December 23, 2004, as early 

as possible and prior to any launch in which that individual will 

participate as crew.





Sec.  460.11  Environmental control and life support systems.



    (a) An operator must provide atmospheric conditions adequate to 

sustain life and consciousness for all inhabited areas within a 

vehicle. The operator or flight crew must monitor and control the 

following atmospheric conditions in the inhabited areas or demonstrate 

through the license or permit process that an alternate means provides 

an equivalent level of safety--

    (1) Composition of the atmosphere, which includes oxygen and carbon 

dioxide, and any revitalization;

    (2) Pressure, temperature and humidity;

    (3) Contaminants that include particulates and any harmful or 

hazardous concentrations of gases, or vapors; and

    (4) Ventilation and circulation.

    (b) An operator must provide an adequate redundant or secondary 

oxygen supply for the flight crew.

    (c) An operator must

    (1) Provide a redundant means of preventing cabin depressurization; 

or

    (2) Prevent incapacitation of any of the flight crew in the event 

of loss of cabin pressure.





Sec.  460.13  Smoke detection and fire suppression.



    An operator or crew must have the ability to detect smoke and 

suppress a cabin fire to prevent incapacitation of the flight crew.





Sec.  460.15  Human factors.



    An operator must take the precautions necessary to account for 

human factors that can affect a crew's ability to perform safety-

critical roles, including in the following safety critical areas--

    (a) Design and layout of displays and controls;

    (b) Mission planning, which includes analyzing tasks and allocating 

functions between humans and equipment;

    (c) Restraint or stowage of all individuals and objects in a 

vehicle; and

    (d) Vehicle operation, so that the vehicle will be operated in a 

manner that flight crew can withstand any physical stress factors, such 

as acceleration, vibration, and noise.





Sec.  460.17  Verification program.



    An operator must successfully verify the integrated performance of 

a vehicle's hardware and any software in an operational flight 

environment before allowing any space flight participant on board 

during a flight. Verification must include flight testing.





Sec.  460.19  Crew waiver of claims against U.S. Government.



    Each member of a flight crew and any remote operator must execute a 

reciprocal waiver of claims with the Federal Aviation Administration of 

the Department of Transportation in accordance with the requirements of 

part 440.





Sec. Sec.  460.20-460.40  [Reserved]



Subpart B--Launch and reentry with a space flight participant





Sec.  460.41  Scope.



    This subpart establishes requirements for space flight participants 

on board a vehicle whose operator is licensed or permitted under this 

chapter.





Sec.  460.43  Applicability.



    This subpart applies to:

    (a) An applicant for a license or permit under this chapter who 

proposes to have a space flight participant on board a vehicle;

    (b) An operator licensed or permitted under this chapter who has a 

space flight participant on board a vehicle; and

    (c) A space flight participant in an activity authorized under this 

chapter.





Sec.  460.45  Operator informing space flight participant of risk.



    (a) Before receiving compensation or making an agreement to fly a 

space flight participant, an operator must satisfy the requirements of 

this section. An operator must inform each space flight participant in 

writing about the



[[Page 75645]]



risks of the launch and reentry, including the safety record of the 

launch or reentry vehicle type. An operator must present this 

information in a manner that can be readily understood by a space 

flight participant with no specialized education or training, and must 

disclose in writing--

    (1) For each mission, each known hazard and risk that could result 

in a serious injury, death, disability, or total or partial loss of 

physical and mental function;

    (2) That there are hazards that are not known; and

    (3) That participation in space flight may result in death, serious 

injury, or total or partial loss of physical or mental function.

    (b) An operator must inform each space flight participant that the 

United States Government has not certified the launch vehicle and any 

reentry vehicle as safe for carrying crew or space flight participants.

    (c) An operator must inform each space flight participant of the 

safety record of all launch or reentry vehicles that have carried one 

or more persons on board, including both U.S. government and private 

sector vehicles. This information must include--

    (1) The total number of people who have been on a suborbital or 

orbital space flight and the total number of people who have died or 

been seriously injured on these flights; and

    (2) The total number of launches and reentries conducted with 

people on board and the number of catastrophic failures of those 

launches and reentries.

    (d) An operator must describe the safety record of its vehicle to 

each space flight participant. The operator's safety record must cover 

launch and reentry accidents and human space flight incidents that 

occurred during and after vehicle verification performed in accordance 

with Sec.  460.17, and include--

    (1) The number of vehicle flights;

    (2) The number of accidents and human space flight incidents as 

defined by section 401.5; and

    (3) Whether any corrective actions were taken to resolve these 

accidents and human space flight incidents.

    (e) An operator must inform a space flight participant that he or 

she may request additional information regarding any accidents and 

human space flight incidents reported.

    (f) Before flight, an operator must provide each space flight 

participant an opportunity to ask questions orally to acquire a better 

understanding of the hazards and risks of the mission, and each space 

flight participant must then provide consent in writing to participate 

in a launch or reentry. The consent must--

    (1) Identify the specific launch vehicle the consent covers;

    (2) State that the space flight participant understands the risk, 

and his or her presence on board the launch vehicle is voluntary; and

    (3) Be signed and dated by the space flight participant.





Sec.  460.47  [Reserved]





Sec.  460.49  Space flight participant waiver of claims against U.S. 

Government.



    Each space flight participant must execute a reciprocal waiver of 

claims with the Federal Aviation Administration of the Department of 

Transportation in accordance with the requirements of part 440 of this 

chapter.





Sec.  460.51  Space flight participant training.



    An operator must train each space flight participant before flight 

on how to respond to emergency situations, including smoke, fire, loss 

of cabin pressure, and emergency exit.





Sec.  460.53  Security.



    An operator must implement security requirements to prevent any 

space flight participant from jeopardizing the safety of the flight 

crew or the public. A space flight participant may not carry on board 

any explosives, firearms, knives, or other weapons.



    Issued in Washington DC on December 1, 2006.

Marion C. Blakey,

Administrator.

[FR Doc. E6-21193 Filed 12-14-06; 8:45 am]



BILLING CODE 4910-13-P