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NewSpace Tipping the Balance of Domestic Liability Regimes: A U.S. Perspective Nathan A. Johnson J.D., George Washington University Law School 2014 LL.M., University of Nebraska College of Law 2015 (expected)

NewSpace Tipping the Balance of Domestic Liability Regimes: A U.S. Perspective Nathan A. Johnson J.D., George Washington University Law School 2014 LL.M.,

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NewSpace Tipping the Balanceof Domestic Liability Regimes:

A U.S. Perspective

Nathan A. Johnson

J.D., George Washington University Law School 2014

LL.M., University of Nebraska College of Law 2015 (expected)

Nathan A. Johnson 2

NewSpace Affect on Space Development

Combined 2014 GSO and NGSO Historical Launches and Lunch Forecast(“2014 Commercial Space Transportation Forecasts,” FAA May 2014)

• “an emerging new segment of space launch demand”

– FUTRON white paper “Market Characterization: Launch of Very-Small and Nano Sized Payloads Enabled by New Launch Vehicles” IAC-10.E6.3.9

Nathan A. Johnson 3

National Risk for Space Activities

• Outer Space Treaty, Art. VI- “international responsibility”

- “authorization and continuing supervision”

• Liability Convention- Art. II “absolute liability”

- Art. III: fault based

Question: Does Increased NewSpace ActivityExpose Governments To More Risk?

Nathan A. Johnson 4

Domestic Liability Regime: United States• Launch & Reentry

- Who needs a license?• US citizen; or• Launching from the US

- What does a license require?• Inspection• Payload Review• Monitoring• Financial Responsibility

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Balance of Risk: Private v. Public• Financial Responsibility = Risk Sharing• Tier 1: Insurance (or other

demonstration)• To cover the MPL to Third-Parties, as

determined by the FAA• Not to exceed $500 Million (+ $100 Million

for Government)• Tier 2: Government Appropriation, aka

Indemnification• If claims exceed Tier 1, Congress will seek to

appropriate funds• Up to an additional approximately $2.8

Billion (in 2015)

Should IndemnificationBe Allowed to Expire?

*SpaceX

Nathan A. Johnson 6

Government Jurisdiction over Space Activities

- Direct Authorization• FAA – Launch & Reentry• FCC – Spectrum• NOAA – Remote Sensing

- Indirect Authorization (Payload Review)• NASA• Department of Defense• Department of State

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Case Study: Satellite Internet Constellations

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Case Study: Bigelow Lunar Habitat

*Bigelow Aerospace

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Concerns from Insurance Market

• New Launch Vehicles • Human Spaceflight

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Conclusion

• Private Companies still investing, developing, and seeking regulatory certainty

• US Government has enough flexibility to support or intervene where they deem risk

Nathan A. Johnson

Questions, Criticisms, Contributions:[email protected]