[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] COMMERCIAL SPACE TRANSPORTATION REGULATORY REFORM: STAKEHOLDER PERSPECTIVES ======================================================================= (115-48) HEARING BEFORE THE SUBCOMMITTEE ON AVIATION OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION __________ JUNE 26, 2018 __________ Printed for the use of the Committee on Transportation and Infrastructure [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available online at: https://www.govinfo.gov/committee/house- transportation?path=/browsecommittee/chamber/house/committee/ transportation ______ U.S. GOVERNMENT PUBLISHING OFFICE 31-577 PDF WASHINGTON : 2018 COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE BILL SHUSTER, Pennsylvania, Chairman DON YOUNG, Alaska PETER A. DeFAZIO, Oregon JOHN J. DUNCAN, Jr., Tennessee, ELEANOR HOLMES NORTON, District of Vice Chair Columbia FRANK A. LoBIONDO, New Jersey EDDIE BERNICE JOHNSON, Texas SAM GRAVES, Missouri ELIJAH E. CUMMINGS, Maryland DUNCAN HUNTER, California RICK LARSEN, Washington ERIC A. ``RICK'' CRAWFORD, Arkansas MICHAEL E. CAPUANO, Massachusetts LOU BARLETTA, Pennsylvania GRACE F. NAPOLITANO, California BOB GIBBS, Ohio DANIEL LIPINSKI, Illinois DANIEL WEBSTER, Florida STEVE COHEN, Tennessee JEFF DENHAM, California ALBIO SIRES, New Jersey THOMAS MASSIE, Kentucky JOHN GARAMENDI, California MARK MEADOWS, North Carolina HENRY C. ``HANK'' JOHNSON, Jr., SCOTT PERRY, Pennsylvania Georgia RODNEY DAVIS, Illinois ANDRE CARSON, Indiana MARK SANFORD, South Carolina RICHARD M. NOLAN, Minnesota ROB WOODALL, Georgia DINA TITUS, Nevada TODD ROKITA, Indiana SEAN PATRICK MALONEY, New York JOHN KATKO, New York ELIZABETH H. ESTY, Connecticut, BRIAN BABIN, Texas Vice Ranking Member GARRET GRAVES, Louisiana LOIS FRANKEL, Florida BARBARA COMSTOCK, Virginia CHERI BUSTOS, Illinois DAVID ROUZER, North Carolina JARED HUFFMAN, California MIKE BOST, Illinois JULIA BROWNLEY, California RANDY K. WEBER, Sr., Texas FREDERICA S. WILSON, Florida DOUG LaMALFA, California DONALD M. PAYNE, Jr., New Jersey BRUCE WESTERMAN, Arkansas ALAN S. LOWENTHAL, California LLOYD SMUCKER, Pennsylvania BRENDA L. LAWRENCE, Michigan PAUL MITCHELL, Michigan MARK DeSAULNIER, California JOHN J. FASO, New York STACEY E. PLASKETT, Virgin Islands A. DREW FERGUSON IV, Georgia BRIAN J. MAST, Florida JASON LEWIS, Minnesota MIKE GALLAGHER, Wisconsin (ii) Subcommittee on Aviation FRANK A. LoBIONDO, New Jersey, Chairman DON YOUNG, Alaska RICK LARSEN, Washington JOHN J. DUNCAN, Jr., Tennessee EDDIE BERNICE JOHNSON, Texas SAM GRAVES, Missouri DANIEL LIPINSKI, Illinois DUNCAN HUNTER, California ANDRE CARSON, Indiana BOB GIBBS, Ohio CHERI BUSTOS, Illinois DANIEL WEBSTER, Florida ELEANOR HOLMES NORTON, District of JEFF DENHAM, California Columbia THOMAS MASSIE, Kentucky DINA TITUS, Nevada MARK MEADOWS, North Carolina SEAN PATRICK MALONEY, New York SCOTT PERRY, Pennsylvania JULIA BROWNLEY, California RODNEY DAVIS, Illinois DONALD M. PAYNE, Jr., New Jersey MARK SANFORD, South Carolina BRENDA L. LAWRENCE, Michigan ROB WOODALL, Georgia MICHAEL E. CAPUANO, Massachusetts TODD ROKITA, Indiana GRACE F. NAPOLITANO, California BARBARA COMSTOCK, Virginia STEVE COHEN, Tennessee DOUG LaMALFA, California HENRY C. ``HANK'' JOHNSON, Jr., BRUCE WESTERMAN, Arkansas Georgia LLOYD SMUCKER, Pennsylvania RICHARD M. NOLAN, Minnesota PAUL MITCHELL, Michigan, Vice Chair PETER A. DeFAZIO, Oregon (Ex JASON LEWIS, Minnesota Officio) BILL SHUSTER, Pennsylvania (Ex Officio) (iii) CONTENTS Page Summary of Subject Matter........................................ vi TESTIMONY Captain Tim Canoll, President, Air Line Pilots Association, International.................................................. 5 Audrey Powers, Deputy General Counsel, Blue Origin............... 5 Caryn Schenewerk, Senior Counsel and Director, Space Flight Policy, SpaceX................................................. 5 Kelly Garehime, Associate General Counsel--Regulatory Affairs, United Launch Alliance, LLC.................................... 5 PREPARED STATEMENTS SUBMITTED BY WITNESSES Captain Tim Canoll............................................... 38 Audrey Powers.................................................... 63 Caryn Schenewerk................................................. 69 Kelly Garehime................................................... 76 SUBMISSIONS FOR THE RECORD White paper by Air Line Pilots Association, International, ``Addressing the Challenges to Aviation from Evolving Space Transportation,'' June 2018, submitted by Hon. Rick Larsen, a Representative in Congress from the State of Washington........ 85 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] COMMERCIAL SPACE TRANSPORTATION REGULATORY REFORM: STAKEHOLDER PERSPECTIVES ---------- TUESDAY, JUNE 26, 2018 House of Representatives, Subcommittee on Aviation, Committee on Transportation and Infrastructure, Washington, DC. The subcommittee met, pursuant to notice, at 10:01 a.m. in room 2167, Rayburn House Office Building, Hon. Frank A. LoBiondo (Chairman of the subcommittee) presiding. Mr. LoBiondo. Good morning. The subcommittee will come to order. Without objection, the Chair is authorized to declare a recess at any time. I would like to thank you all for being here today. We will be hearing from representatives of the commercial space transportation industry and other airspace users on the Federal Aviation Administration's regulatory reform efforts. This is the fourth subcommittee hearing we have held over the past two Congresses that touched on commercial space transportation issues. Over that time, we have come to know and understand the commercial space transportation industry better, just as you have come to know us a little bit better. These past 2 years have been ones of tremendous growth for the industry. There have been more FAA-licensed launches in the first half of 2018 than there were in all of 2016. Blue Origin and SpaceX continue to push the boundaries of launch vehicle reusability, while driving down the price of a launch. ULA [United Launch Alliance] continues to deliver highly reliable launch services to the Federal Government and commercial partners. And the industry has a number of exciting new vehicles under development, including those that will soon be used to transport huge amounts of cargo and the first passengers into commercial space. And Rick assures me he is going to be on that first run. [Laughter.] Mr. LoBiondo. I have only scratched the surface when it comes to the tremendous game-changing innovation that is occurring in this industry. We are poised to reap the benefits of these investments that you have made. I am particularly impressed by the job that the FAA's Office of Commercial Space Transportation, or AST, has done in enabling the industry's success. Facing an unprecedented rise in the volume and complexity of commercial launches, AST has managed to meet its statutory deadlines for each and every launch license or permit. But AST cannot rest on its laurels, and neither can we. As this industry grows and evolves, we must ensure that our regulatory structure keeps pace. Every doubling of licensed launches cannot mean a doubling of AST staff or budgetary resources. What is needed is a more streamlined regulatory approach that reduces complication, duplication, and uncertainty, while preserving safety and leveraging the expertise of the commercial space transportation sector. FAA and AST are moving at breakneck speed to achieve the deadline imposed by Space Policy Directive-2, something that we all hope that they are able to achieve. But we also want to continue the discussion on launch and other commercial space transportation regulatory reform. As launch cadences increase, the impact on other National Airspace System--or NAS--users could increase, as well. FAA is currently working on different procedures and technologies that can integrate commercial space operations into the NAS, rather than merely accommodating them. One of those technologies, the Space Data Integrator, should allow the automated release of airspace back to other users once a launch vehicle has passed by. Much of the work on SDI is being conducted at the FAA's flagship Technical Center in my district in Egg Harbor Township, New Jersey, which, if anyone is not sure, is at the Atlantic City International Airport. We look forward to hearing from our more traditional airspace users on additional ways to ensure safety in the NAS. I would now like to recognize Mr. Larsen for any opening remarks. Mr. Larsen. Thank you, Chairman LoBiondo, for calling today's hearing on commercial space transportation. It has been 2 years since the subcommittee convened a hearing on commercial space. And since that time, the U.S. has experienced tremendous growth and innovation in the industry. The economic footprint of this segment of the aerospace industry is significant. According to the FAA, the U.S. space industry represents about $158 billion, which is just shy of half of the global space economy, estimated at $345 billion, according to 2016 figures. The U.S. is not alone, however--it is not the only nation making significant advances in commercial space. Last year I visited the Paris Air Show, where the role of commercial space itself was prevalent, as well, and companies across Europe represented at the show appeared to be thriving. And New Zealand itself is developing its own space industry. So it is critical that we ensure the U.S. and its companies remain competitive on the international stage in commercial space, just as we have done that in traditional aviation for decades. Commercial space transportation has opened the door to a wide host of new applications for satellite services and space research. Some companies are inching closer to providing personal space flight. So this is not only exciting from a national perspective, but from a local one, as well. This growth supports more than 200,000 aerospace jobs across the Nation. And, notably, more than 136,000 folks who make up the aerospace workforce call Washington State home. According to the Bureau of Labor Statistics, Washington State employs aerospace engineers at 5.7 times the national average, and has the highest density of aerospace engineers in the U.S. Snohomish County, which is part of the district I represent, is home to the State's second largest concentration of aerospace jobs, with more than 43,000--nearly 44,000 in aerospace manufacturing. And according to our State's department of commerce, more than three dozen space-related companies are part of Washington State's space cluster, including companies represented here today, like Blue Origin, SpaceX, Spaceflight Industries, Boeing, and, of course, many others. Pioneering innovative research and development in the State is driven by two world-class universities and national research lab and groundbreaking R&D teams. And in addition, we have companies that are NASA suppliers, as well, for the Orion, the Starliner, and SpaceX BFR spacecraft. So we have got a lot riding on commercial space in Washington State. And before I go further, I do want to take the opportunity to introduce one of our witnesses, Audrey Powers, who is here today to represent Blue Origin in Kent, Washington. Blue Origin supports a growing ecosystem of commercial space suppliers and manufacturing services in our State and the country and the world. So I would like to say welcome to Ms. Powers. I can barely see that far, I lost my glasses last year--on an airplane, by the way, a very appropriate place for me to lose my glasses. FAA reports launch licenses are on an upward trend, and are expected to continue over the next decade. So since the first FAA-licensed launch in 1989 there have been 278 licensed commercial space launches. Nearly one-quarter of these have occurred in the last 5 years, alone. And in fact, a record 23 FAA-licensed launches occurred last year. It is also vital for our national security for this segment of the aerospace industry to remain strong and competitive. The promise of commercial space is endless, but safety still must remain the number-one priority. The President has directed the FAA to overhaul its launch license and reentry regulations in an aggressive, 1-year timeframe. We have heard from some stakeholders that FAA's regulations were drafted 25 years ago and are, in fact, in desperate need of a rewrite. But we have also heard from folks who caution safety might be compromised if the FAA is forced to ``streamline'' its regulatory framework in just 12 months. It was just 4 months ago this subcommittee convened to discuss the state of aviation safety. I mentioned then--and it bears repeating now--the U.S. has the safest aviation system in the world. And any effort to reform regulations must not roll back safety requirements. We have to keep in mind that more than 2\1/2\ million passengers fly through U.S. airspace each day. With an increasing number of space ports and launches on the horizon, we have to ensure our airspace remains safe. This subcommittee's job is to ensure the FAA has the authority and resources needed to make the system even safer. And maintaining our unparalleled safety through new integration into the system requires all aviation stakeholders be at the table. And that said, as well, I am pleased to have Captain Tim Canoll, from ALPA [Air Line Pilots Association, International] here with us this morning to discuss the potential effects that this booming industry is having on existing legacy aviation users. I also hope to learn from our other witnesses why and what reforms to the FAA's commercial space regulations are needed, and whether there are concerns regarding the administration's approach. It is too soon to know what the FAA will propose next year. And while flexibility is necessary so the industry can continue to grow, I trust the subcommittee will keep a close eye on any efforts that undercut safety. Again, Mr. Chairman, thank you so much. I look forward to hearing from our witnesses. And Mr. Chairman, I would ask for unanimous consent that a white paper entitled, ``Addressing the Challenges to Aviation from Evolving Space Transportation,'' prepared by Air Line Pilots Association, International be entered into the record. Mr. LoBiondo. Without objection, so ordered. [The white paper is on pages 85-99.] Mr. Larsen. Thank you, Mr. Chairman. Mr. LoBiondo. OK. Thank you, Rick. Let's see, do we have Mr. DeFazio? Mr. DeFazio. Thank you, Mr. Chairman. Sorry, I was a little late. I was at a caucus meeting, talking about the sea lions. Far from this subject. A terrestrial problem. Well, thank you for holding this hearing, the first in a couple of years. Obviously, there is incredible excitement in the potential for commercial development in space, and we want to maintain the U.S. lead in this area. We do also--as I believe I came in at the end of the ranking member's remarks--want to be certain that we are moving forward in a way that doesn't impinge on creativity and moving quickly, but also is as safe as possible. There used to be a dual mandate for the FAA that was left over from the old Civil Aeronautics Board, an immature industry. And it was that they were both to regulate and promote the industry. And for years on this committee I raised the issue that I thought that there was an inherent conflict. And, you know, person after person from the FAA marched in and said, no, there is no conflict, no problem. And then, in an FAA reauthorization one year, I tried to strip away the--I said it is a mature industry, you don't need to promote it any more, you just need to regulate it and make sure it is safe, and I lost that amendment in the committee by a close vote. And then we had the--I think--I am trying to remember. I guess it was ValuJet, I think was the name of the crash. And we had already done the bill out of the House and done the bill out of the Senate, and I got a phone call saying, ``Where would we put your language into this bill,'' realizing that, indeed, we had not been overseeing repair stations and subcontractors of repair stations and others adequately, and a lot of people died because of it. So, you know, we just need to move forward in a way that does not create problems. And another issue is we have the largest, most robust commercial aviation system in the world, and there are potentials for conflicts with space ports and commercial aviation. And we have to be very cognizant of that, as we move forward. I think there are some great places to put space ports. There are others that are in very heavily congested, heavily used commercial corridors, which means either that space port is going to have very limited opportunities for use, or we are going to be causing delays and disruptions of the already overloaded commercial system. So this needs to be approached with some significant thought and care, as we move forward. So I really welcome this committee holding this hearing to air these and other issues so we can maintain our leadership, but do it in a way that also maintains the best of safety, and also does not interfere with our very robust commercial aviation industry. With that, Mr. Chairman, I yield back. Mr. LoBiondo. Thank you, Peter. I thank our witnesses for being here today. And they are Captain Tim Canoll, the president of Air Line Pilots Association, International; Ms. Audrey Powers, deputy general counsel for Blue Origin; Ms. Caryn Schenewerk, senior counsel for SpaceX; and Ms. Kelly Garehime--I hope I got that right--associate general counsel for United Launch Alliance. Again, thank you for being here today. I ask unanimous consent that our witnesses' full statements be included in the record. Without objection, so ordered. I also ask unanimous consent that the record of today's hearing remain open until such time as our witnesses have provided answers to any questions that may be submitted to them for a followup response, and unanimous consent that the record remain open for 15 days for additional comments and information submitted by Members or witnesses to be included in the record of today's hearing. Without objection, so ordered. Since your written testimony has been made a part of the record, the committee requests that you try your best to keep your oral remarks to 5 minutes. Captain, you are recognized to kick it off. TESTIMONY OF CAPTAIN TIM CANOLL, PRESIDENT, AIR LINE PILOTS ASSOCIATION, INTERNATIONAL; AUDREY POWERS, DEPUTY GENERAL COUNSEL, BLUE ORIGIN; CARYN SCHENEWERK, SENIOR COUNSEL AND DIRECTOR, SPACE FLIGHT POLICY, SPACEX; AND KELLY GAREHIME, ASSOCIATE GENERAL COUNSEL--REGULATORY AFFAIRS, UNITED LAUNCH ALLIANCE, LLC Mr. Canoll. Thank you, Chairman LoBiondo, Ranking Member Larsen, and Ranking Member DeFazio, and the subcommittee for the opportunity to be here today. It is my privilege to represent ALPA's more than 60,000 pilots who fly for 34 U.S. and Canadian airlines. I want to say, thanks to this subcommittee's leadership in encouraging collaboration among Government, industry, and airspace users, the U.S. airline industry is the safest mode of transportation the world has ever known. This safety record has helped make commercial aviation a significant economic driver in the United States. Safe flying simply equals a strong aviation industry and contributes to a solid economy. Airline pilots share this subcommittee's commitment to safety. ALPA is the largest, nongovernmental aviation safety organization in the world. We feel certain--and the facts show--that having at least two fully qualified, well-trained, and adequately rested pilots in every airliner cockpit has made flying safer. ALPA believes that the spirit of collaboration this subcommittee helped foster in the U.S. airline industry will also allow aviation and space transportation to succeed together. The future growth of the aerospace industry, both aviation and commercial space transportation, relies on safe, dependable, and efficient access to the National Airspace System, air traffic management, and ground infrastructure. As the U.S. airline industry works to meet future passenger and shipper demand while space flight operations also increase, the aerospace industry must jointly create policies, regulations, and procedures to share resources efficiently and, most of all, safely. We know the work to safely integrate commercial space transportation must succeed because space ports are, or plan to be, located near some of this country's busiest airports and airspace. For example, an FAA study of a spacecraft launch and reentry at Cape Canaveral in 2013 found that airline flights around Jacksonville and Miami air traffic control centers were forced to fly as many as 23 minutes longer than on days without launch activity. Given the interest in increasing the number and scale of spaceflight launches, it is easy to extrapolate the tremendous effect that commercial space operations could have on the U.S. airline industry, as well as on its passengers, cargo shippers, and workers if integration isn't managed correctly. ALPA has long embraced new technology and innovation. We have helped develop and implement some of the important safety systems on airliners flying today. ALPA's experience with technology and operations in the national airspace makes it clear that a comprehensive plan is essential to safely and efficiently integrate commercial spaceflight and airline operations. Moreover, Congress must provide the FAA with adequate funding to develop and execute this plan. While the FAA is currently prevented from enacting commercial space transportation regulations until 2023, there is no reason why the FAA and our industries can't get started now on a plan for safe integration. For the moment, commercial space operations must continue to take place in segregated airspace until we know we can maintain a high level of safety for all users following an integration. However, Congress can encourage the FAA to get started now on providing the more complex analysis, safety oversight, and air traffic control services that will be necessary for integration. Regulators can also act today to develop communication, navigation, and surveillance requirements. Regulations must ensure safety in space vehicle design and flightcrew qualification training and certification. All of this will require the FAA and all stakeholders involved in aviation and commercial space transportation to communicate and coordinate their efforts. ALPA pilots, who offer a deep bench in safety expertise, are ready to assist. It is an exciting time to be part of the aerospace industry. In just a few years, passenger and cargo aircraft will share the national airspace with space tourists and unmanned aerial system operators. With this subcommittee's continued leadership, ALPA feels confident that the FAA and the aerospace industry can work together to achieve this high level of safety that Americans expect and, yes, demand from U.S. air transportation. Thank you very much. Mr. LoBiondo. Thank you, Captain. Ms. Powers? Ms. Powers. Chairman LoBiondo, Ranking Member Larsen, Ranking Member DeFazio, and members of the subcommittee, thank you for the opportunity to speak before you today on commercial space transportation regulatory reform, a topic that Blue Origin has been heavily focused on for over 2 years. Blue Origin's mission is to enable a future where millions of people live and work in space. This vision demands higher flight rates, lower cost access to space, and an unwavering attention to safety. This can only be achieved with full operational reusability of our launch vehicles. Our fully reusable New Shepard suborbital launch vehicle has flown to space and back eight times, achieving five of those flights with the same vehicle in less than 12 months. While the booster lands vertically on landing gear, our capsule separates from the booster in space, and offers 4 minutes of weightlessness before returning for a soft landing on Earth. New Shepard traverses the National Airspace System and exceeds 60,000 feet of altitude within 90 seconds of lift-off, and the full flight duration is about 11 minutes. Blue Origin also is developing a next generation reusable orbital launch vehicle called New Glenn, which will launch people and payloads from Cape Canaveral Air Force Station to low Earth orbit and beyond. Reusable launch vehicles, or RLVs, vary widely in design and operation. Some, like New Shepard and New Glenn, launch and land vertically, allowing the booster stage to be reused. Others launch and land horizontally, while others are high- altitude balloons. Expendable launch vehicles, or ELVs, launch vertically, and their booster stage falls into the ocean, never to be used again. FAA regulates ELVs and RLVs differently. FAA's ELV regulations are voluminous and prescriptive. ELV regulations identify risk limits that operators must meet, and they define how to design, test, and operate the launch vehicle to meet those risk limits. FAA promulgated these regulations by codifying Air Force requirements for launch vehicle operations at Federal ranges. This regulatory approach was not designed for the cadence of operations or the new vehicle architectures realized in recent years. FAA developed an entirely separate set of regulations for reusable launch vehicles that are wholly different than FAA's ELV regulations. Instead of FAA defining how to design, test, manufacture, and operate a vehicle, FAA conducts a performance- based review of the RLV operator's system safety case. The operator identifies hazards and presents appropriate mitigation measures for those hazards. In short, the RLV regulations impose safety thresholds that an operator must meet, but the operator can choose any number of acceptable approaches to meet those thresholds. Blue Origin operates New Shepard at a private launch site under these RLV regulations. While they are outdated and could be improved to help increase launch cadence, the RLV regulations are the best approach to regulatory oversight that currently exist. They promote innovation without compromising safety. In the case of New Glenn, because it will launch from an Air Force facility, it must be authorized by both FAA and the Air Force. The Air Force has one set of requirements for all launch vehicles. They are the prescriptive requirements that FAA used for its ELV model. This means that reusable launch vehicle operators lose the benefit of FAA's performance-based approach to regulating RLVs, because we must also meet the Air Force's prescriptive requirements. Blue Origin welcomes the efforts by this administration, the National Space Council, FAA, and industry to develop one set of regulations applicable to all launch vehicles that are flexible, streamlined, and performance-based. The best path forward will use FAA's current RLV regulations as a model. Space Policy Directive-2 specifically directs the Secretary of Transportation to replace prescriptive requirements with performance-based criteria. Blue Origin's difficult situation at Cape Canaveral shows that this directive cannot be met without also addressing the Air Force's prescriptive requirements. The administration recognized this need by directing that DoD and DOT and NASA coordinate to examine and minimize all existing U.S. Government requirements associated with activities at Federal ranges. The right solution to today's overbearing regulatory environment is to review and reform all regulations and requirements applicable to launch activities. Blue Origin is eager to continue working with Congress, FAA, the Air Force, the National Space Council, and industry members to ensure that new regulations promote safety above all, while also supporting the expansion of commercial efforts and new technologies. Thank you again for the opportunity to speak with you today, and for your attention to this important matter. Mr. LoBiondo. Thank you, Ms. Powers. Ms. Schenewerk? Ms. Schenewerk. Mr. Chairman, Ranking Member Larsen, Ranking Member DeFazio, and members of the committee, thank you for the opportunity to address the subcommittee today. I also want to thank the FAA for their hard work licensing and supporting the industry. On behalf of my more than 6,000 colleagues at SpaceX, we appreciate your interest in modernizing regulations associated with the commercial space industry. SpaceX's mission is to dramatically improve the reliability, safety, and affordability of space transportation. Since 2010 we have successfully launched our Falcon 9 rocket 55 times. And earlier this year, we successfully conducted the inaugural mission of the Falcon Heavy rocket. Our diverse set of launch customers include NASA, DoD, and the broader national security space community, as well as commercial satellite operators and allied international governments. Commercially, SpaceX is the largest launch services provider in the world, with more than 100 missions on manifest representing $12 billion in signed contracts. Having entered the commercial satellite launch market in 2012, SpaceX has restored the U.S. as a market leader, reversing a troubling trend in American competitiveness. The rapid pace of innovation in the U.S. commercial space industry is redefining access to space for commercial and Government customers. It is also advancing technology, growing the economy, and creating new jobs. Given ground-breaking technological advances like rocket reusability and the expanding scope of commercial space activities, regulatory reform is both timely and necessary. Despite a record year for U.S. launches, it is important to keep in perspective that space launch continues to be a relatively small user of the national airspace, compared to commercial aviation. While the FAA supports more than 42,000 commercial airline flights per day, in 2017 there were only 23 U.S.-licensed launches; 17 of those were SpaceX. When we launch, we are in the NAS very briefly. Falcon 9 crosses 60,000 feet in a quick 90 seconds. After stage separation, the rocket reenters the NAS for roughly 1 minute prior to landing. It is worth noting that commercial space and commercial aviation are symbiotic. Many of the satellites we launch are key enabling technologies for our aviation colleagues. For example, GPS satellites, weather satellites, and communication satellites that provide in-flight connectivity. Nevertheless, FAA launch licensing regulations, designed decades ago, are outdated and unnecessarily onerous. They are not reflective of new technologies such as reusable rockets and autonomous flight safety systems. For the U.S. to stay at the leading edge of space innovation, we must reform these regulations in a way that preserves public safety and accommodates innovation. We must also optimize use of the NAS. I have submitted a detailed written statement with SpaceX's recommendations, but I would like to highlight a few key initiatives. First, SpaceX strongly supports the direction contained in Space Directive 2, which calls for the Secretary of Transportation to review regulations governing launch and reentry. We support the direction to require a single license for all types of commercial space launch and reentry operations, and we strongly support replacing outdated, prescriptive requirements with a performance-based regulatory regime for all launch types. The transition to performance-based regulations is crucial and consistent with sound regulatory policy. I want to emphasize that SpaceX is not seeking any change to weaken safety requirements. Rather, we are encouraging the adoption of new tools and processes to make licensing more efficient for both the FAA and launch operators. A performance-based system will enable new technologies that will improve safety. Second, FAA regulation should allow launch providers to receive a single license for multiple launch sites without the need to obtain a separate license per site. Currently, we have two launch sites in Florida: one at NASA's KSC [Kennedy Space Center] and one at Cape Canaveral Air Force Station. Falcon 9 frequently launches from both sites, which are roughly 3 miles apart. Yet if we change sites prior to the mission, we have to undertake a license modification process. That is not a practical situation. In addition, FAA and U.S. Air Force range requirements should be harmonized to end conflicting and confusing differences. These changes are about process, and will help the industry better achieve safety objectives. Finally, commercial space launch needs to be better integrated into the national airspace. SpaceX is committed to working with the FAA and commercial airline operators to achieve this goal. Current FAA operations do not use real-time information regarding the actual position and trajectory of the launch vehicle. In addition, debris propagation software used today results in larger volumes of airspace being closed for longer periods of time than is necessary. We encourage this committee to accelerate FAA's adoption of new analytical tracking and display tools that will better integrate space and aviation users of the NAS. SpaceX is honored to be part of the ongoing process of regulatory reform, and looks forward to continuing the collaborative effort with the FAA, industry, and Congress. Mr. Chairman, thank you again for the opportunity to share our views with the committee. I look forward to any questions. Mr. LoBiondo. Thank you very much. Ms. Garehime, you are recognized. Ms. Garehime. Chairman LoBiondo, Ranking Member Larsen, Ranking Member DeFazio, and members of the subcommittee, thank you for the opportunity to appear before you today on behalf of United Launch Alliance to discuss regulatory reform and safety. ULA is the most successful commercial launch company. Since we formed in 2006 we have launched 128 missions with 100 percent mission success. No other launch company matches that record. ULA is the only launch provider certified to meet all national security space requirements. For more than a decade we have launched nearly every major national security asset and NASA mission to orbit. GPS, secure communications, weather forecasting, tracking and data relays, and missile warning satellites are among the many payloads ULA has delivered to space. ULA builds and launches the Atlas and Delta families of rockets which trace their heritage back to the dawn of the space age. John Glenn made his historic trip into orbit aboard an Atlas in 1962, and astronauts will be flying on Atlas V aboard Boeing's Starliner to the International Space Station as part of NASA's commercial crew program. The Atlas and Delta family of rockets have enabled science missions to every planet in the solar system. We are also working to take commercial companies to distant destinations. Astrobotic, a commercial lunar logistics company in Pittsburgh, recently selected ULA to launch their Peregrine lander to the surface of the moon. This will mark the first launch of a commercial vehicle to the lunar surface from the United States. Eighteen of our one hundred and twenty-eight missions to date have been commercially licensed through the FAA. Our commercial customers cannot afford launch mishaps or significant delays. And one of ULA's key differentiators is our ability to launch quickly and on time. In 2016 we unveiled RapidLaunch, which allows customers to go from contract to launch in as little as 3 months. This offering would not be possible without help from the FAA. And we have successfully worked with the FAA in the past on accelerated timelines. When Orbital ATK needed ULA to launch the OA-7 cargo mission to the International Space Station, the requested launch date was within the FAA's allotted 180 days for review of a new license application. Thanks to our relationship with the FAA and its familiarity with the Atlas V, they expedited their review and we successfully launched the mission less than 6 months after going on contract. In the past, FAA AST has lacked adequate resources. But Congress acted to rectify that. I would like to thank this committee in particular for its work on the FAA Reauthorization Act of 2018, which increases AST's authorized budget to more than $33 million in 2019, and continues increases in future years. ULA has been participating in multiple Aviation Rulemaking Committees, or ARCs, and continues to engage Congress and the administration on safe, commonsense regulatory reform. The President, National Space Council, Congress, Department of Commerce, and the FAA should be applauded for their efforts to empower America's space industry. In my written testimony I have provided several recommendations that, if implemented, would increase efficiency without sacrificing safety. In the launch business, when something goes wrong it impacts everyone. A worst-case scenario would be loss of life resulting from a commercial space launch. The FAA is doing an excellent job ensuring public safety in today's regulatory environment, and we urge all parties to remain focused on safety. Space launch is not the same as driving a car or flying a plane. A launch accident that damages a launch facility could significantly delay or even halt the Government's ability to get critical life-saving assets to space. I want to thank this committee for taking an interest in this topic, and making sure that licensing and regulatory reform are done properly. It is critical to ensuring the United States remains the world leader in space. Thank you for inviting me to appear today, and I look forward to answering any questions. Mr. LoBiondo. Thank you all for your testimony. Mr. Larsen? Mr. Larsen. Thank you, Mr. Chairman. So I want to first start with a couple of questions about the process of the rulemaking. I will start with you, Captain. As we sit here today, do you believe that the process in this 1-year timeframe is open enough? Is it transparent enough? Are you and other--I guess the term is legacy users, someone was using--was talking about legacy users of the NAS--do you feel that you have enough both insight and input into the 1-year rulemaking process? Mr. Canoll. So I have been called worse than legacy. It does fit, though. So safety is always paramount. And we are never in favor of any time restrictions or deadline that could impact safety. That being said, if the FAA strives with this committee's oversight to include all stakeholders, there are advancements that could be made to streamline the current process of licensing and permitting. And as it impacts my members, that would also streamline, hopefully, the establishment and the reduction of the amount of airspace required for these launches. Mr. Larsen. Yes. Am I hearing in your answer that FAA is not including folks? Mr. Canoll. So we see--and I think my panel is going to probably agree--that more collaboration between my part of the industry and their part of the industry is something we could all use. And that is not something we are waiting for the FAA to do for us; we are organizing ourselves on the aviation side right now, in hopes that we can have our collective positions all set up for when we get a chance to integrate and talk with these operators in a more detailed manner. The FAA can't do this by themselves, they are going to have to use all of us to go forward here. And again, to the deadline, any deadline is something that should never violate the actual safety rule. If you are not ready, safety-wise, deadline or not, you shouldn't do it. Mr. Larsen. Yes. So, Ms. Powers, when we dealt with some streamlining on the part 23 regs for general aviation, it took a lot longer than 1 year when we attempted that, when the FAA attempted that. We did step in a few years ago to kind of push the FAA along, but it wasn't--it took a lot longer than 1 year, and that was for general aviation. Do you think the 1-year timeframe, as aggressive as it is, and as supportive as a lot of us would want to be of it, is that realistic? Ms. Powers. So I have heard stories of that part 23 rulemaking, and I am not familiar with it specifically. But we also in the commercial space industry have seen lengthy rulemaking timelines for regulations in the past that have been updated. I acknowledge that the 1-year timeline is very, very aggressive. I think that the formation of the Aviation Rulemaking Committee at the beginning of the process was very important for FAA to collect information from industry members. We were very happy to be involved in that effort. We look forward to engaging with the FAA again on this matter, and I think it is important to understand that the 1- year deadline, although very accelerated, the result of that is an NPRM---- Mr. Larsen. Right. Ms. Powers [continuing]. A notice of proposed rulemaking. So there is potential for lengthy comment periods and reviews and back-and-forths, and interim rulemaking after that point. So I think that it is left to be determined how long the actual process will take in its entirety. Mr. Larsen. Yes, thanks. Ms. Schenewerk, this is a technological question. So it is not that you wouldn't understand it; I may not understand my asking of it. Is there a technological difference between an ELV and RLV with regards to the performance-based versus the prescriptive-based regulation? Ms. Schenewerk. Right. So I am a lawyer, not an engineer, but I appreciate the question. If you don't mind, though, I would like to address one of your prior questions related to the regulatory---- Mr. Larsen. So can you get back to me on that question, though? Ms. Schenewerk. Certainly. Mr. Larsen. Thank you. Ms. Schenewerk. So in that regard, the technical difference would be your ability to recover the rocket. But that is not something that drives the regulatory approach to it. An ELV would be a Falcon 9 if we threw the first booster away. The Falcon 9 becomes a reusable rocket when we land that first- stage booster instead of throwing it away after the mission. And so it is an increase in the technological capability of the vehicle and the operator, but that is not something that can't be accommodated by a performance-based regulatory approach. Mr. Larsen. Yes. Ms. Schenewerk. There is not a reason why an ELV should take a prescriptive approach, and the same rocket, doing a more advanced operation, could operate under a performance-based system. They can both operate that way. One of the important things, I think, about the regulatory reform undertaking that is occurring is that it is not addressing the level of safety applied to our vehicles or our operations. Mr. Larsen. Right. Ms. Schenewerk. So we are not talking about a regulatory change, a deregulation of the industry in that manner. We are talking about the application of a performance-based system, where you set the level of safety--one that we are not advocating for changing--and then you allow operators to have flexibility with regard to the technology that they use and the operational constraints that they use to achieve that level of safety. Mr. Larsen. Yes, OK. So my time is up. And I will have other questions if we have a second round. But thank you, Mr. Chairman. Mr. Woodall [presiding]. The gentleman yields back. The gentleman from Ohio, Mr. Gibbs. Mr. Gibbs. Thank you, Chairman, and thank you to the panel. I guess to everybody on the panel, first of all, I guess you talked about all the launches you have had, successful launches. I assume that is mostly for putting satellites up. Is that correct? That is where your revenue stream is? Ms. Garehime. Is the question to me? Mr. Gibbs. Yes, it doesn't matter. Ms. Garehime. Yes, sure. Mr. Gibbs. OK, yes. Ms. Garehime. We put all different types of payloads up: GPS, secure communications, weather forecasting, tracking and data relays, missile warning satellites. Mr. Gibbs. OK. What is the tipping point or--I guess for commercial human space flight to be economically viable, what is kind of the timeline you anticipate? Ms. Garehime. So we are on contract for a commercial crew launch under the commercial crew program, and we expect to bring astronauts to space in the near future. Mr. Gibbs. Go ahead. Ms. Schenewerk. An exciting opportunity for SpaceX is our commercial crew contract with NASA to carry astronauts to the International Space Station. We are also working towards private passenger carriage, and we have folks very interested in that, and in fact, a contract to undertake that activity. And I think that one of the important parts of our approach to the industry is that we leverage the Falcon 9 launch vehicle for both commercial satellites, as you indicated, satellite carriage, cargo carriage to the International Space Station--we are up to about 15 missions with that--and that carries the Dragon spacecraft that we also manufacture in-house for astronaut carriage, or any other carriage beyond NASA's needs. So I think it is a matter of holistic approach to launch, which has both the capability to launch satellites and the capability to carry humans, and the fact that those are integrated together. Mr. Gibbs. Now, you said we are still the leader in the world. Are our competition--I suppose China or Russia would be the two key ones--what is going on, compared to us, what we're doing? Ms. Schenewerk. Yes, so it is a great question. So when SpaceX entered the launch services market, the orbital commercial satellite launch services market, in 2012, the United States had, essentially, zero percent of that market. So we have recaptured 60 percent of that market share. And you are exactly right, that that is away from the Russians, also the Europeans, the Chinese, and the Indians. Mr. Gibbs. Anybody else want to comment on that? [No response.] Mr. Gibbs. What do you see--do you concur with that, that we are--what you see our vulnerabilities are to not be the leader in this effort? Ms. Garehime. So we are moving towards more commercial businesses, absolutely, coming back to the U.S. Our Atlas and Delta rockets were originally designed to support the commercial market. That market never materialized, and our focus turned to Government missions, and 100 percent mission success. We are now transitioning to be a much more key player in the commercial market, and are developing a new rocket, the Vulcan Centaur rocket. We expect that to really help us become a larger key player in that market. Mr. Gibbs. And those are the reusable vehicles, rockets, right? Ms. Garehime. The Vulcan Centaur is an expendable launch vehicle. We are looking at reusability at the component level. So we would look at SMART [Sensible, Modular, Autonomous Return Technology] reuse, which would be reusing the most expensive component on the rocket, which is the engine. We are also looking at reusing our upper stage, so that means once the upper stage gets up into orbit, usually you would dispose of it, either put it into a graveyard orbit or deorbit the upper stage. What we are looking at through our ACES technology would be leaving the upper stage in orbit, and reusing it up in space. Ms. Schenewerk. If I may add to that, the Falcon 9 first stage is entirely reusable. We have launched and landed the Falcon 9 twenty-five times. We have reused 13 of those boosters. Our most recent version of the Falcon 9 is the Falcon 9 Block 5 and it is now flying. We look to be able to use Block 5 at least 10 times with minor inspection following, and with at least 10 reuses of a first-stage booster. That is part of the reason why SpaceX has been able to recapture 60 percent market share. Because we are able to have a highly reliable rocket as a result of that reusability. It means that you can test it, you can fly it, you can look at it again, then you can fly it again, and so you can keep getting really good data on the performance of your vehicle. And it also contributes, of course, to the safety of the vehicle. Mr. Gibbs. Thank you. I am out of time; I yield back. Mr. Woodall. The gentleman yields back. The ranking member of the full committee, Mr. DeFazio. Mr. DeFazio. Thank you, Mr. Chairman. Captain Canoll, the whole process for space port approval, you have concerns about that. I recently met, I won't say who it was, but people raising concerns about the proximity of a proposed space port that does not have an operator, which is a build-it-and-they-will-come proximate to Denver International Airport, and the potential for interference with operations there. How do you think this process should work better? Mr. Canoll. So you articulated both concerns from our perspectives. One is the proximity issue either to highly congested airspace, or a heavily used airport. The segregated airspace methodology, which is the only one available to us today to deconflict space travel and aviation, would order of magnitude be more difficult at some of the locations like the one in Denver being considered. The process currently has it as a two-stage process, where a space port is authorized, and then the operator at the space port is done in a separate authorization. It is hard for ALPA to comment on one or the other, without seeing the full picture concept. If you are going to launch from this space port, what kind of operations are they? Are they RLA? Are there EVAs? What kind of rocket will be launched? Is it traditional aircraft launched to high altitude? So our inability to match the two to one issue is where we are running into problems with giving good comments to the FAA as they consider these. Mr. DeFazio. OK. Now, the segregated airspace, obviously, is an issue. And Ms. Schenewerk implied that you envision a time where we could either dramatically shrink that, or maybe do real-time, more like air traffic control. So I would like you to briefly comment, and then Captain Canoll to comment on whatever you say. Ms. Schenewerk. Absolutely. Thank you for the opportunity. So what we see today is that when a rocket launches--and our rocket launches, just to provide some context, are from coastal areas, because we launch in an orbital trajectory. We are achieving orbit in about 90 seconds through the---- Mr. Woodall. Miss, could I ask you to pull that microphone just a little bit closer? Ms. Schenewerk. Oh, absolutely. Mr. Woodall. Thank you very much. Ms. Schenewerk. Is that a little better? Mr. Woodall. You can move that whole box closer. Ms. Schenewerk. Here we go, OK. Oh, thank you. So as I noted, we are through the NAS in about 60 seconds, if everything goes as planned. So the hazard area that is imposed upon us is a keep-out zone. And that keep-out zone is applied in multidimensions, right? So it is to people on the ground, it is to aircraft in the air, and to mariners at sea. And we launch over the water so as to maintain that risk level, so that we are not putting public at risk, so it is nonpopulated areas. That is why we don't currently undertake orbital launches from the center of the country. So right now, when an air traffic controller is on station during a launch, what they see is that keep-out zone, that large box hazard area keep-out zone. What they don't see is the launch vehicle actually moving across their scope in that very quick timeframe, and clearing the area. And that results in that keep-out zone being imposed for at least an hour, usually, before launch and hours post-launch, because it is not dynamic. So what we would like to see is, some IT tools that can better model the debris dispersion that could occur if you were to have a bad day with the vehicle, based on that day's weather, whether it is wind direction or air density, and that specific vehicle and that specific trajectory, so that we could see when it moves through it quickly and successfully, we can open the airspace dynamically, instead of having phone calls and big boxes blocking space. This is essentially an IT solution. It is modeling capabilities and data integration capabilities. Mr. DeFazio. OK. Captain Canoll, what do you think of that impression? Mr. Canoll. Absolutely correct. Caryn got it exactly right. The real-time feedback is something that they are using now in very small instances. It needs to be on every launch. But the ultimate goal, if we are going to meet the anticipated cadence, is full integration. And there is one larger issue in full integration that we have to work together through as a team, and that is the allowable risk. Right now we model in the traditional aviation 10 to the minus 9, so catastrophic mishaps, 1 in 1 billion. The space, commercial space, is modeling at 1 to the minus 6, 1 in 1 million. Well, that is a big difference, that is 10,000 times bigger. So we have to work through that. It is completely doable, it is completely doable, but it is going to take starting now, and money, and oversight. Mr. DeFazio. OK. Thank you. Anybody else want to comment on that particular point? Ms. Powers. Yes, sir. I would like to add a couple of things. I think it is very important that tool development be the focus, because we are smart enough to solve this problem. There are a lot of great people at AST and FAA working on this. I know that SpaceX and Blue Origin have worked on flowing telemetry through the SDI system that the chairman mentioned earlier to try to figure out how to get real-time telemetry to the air traffic controllers to minimize disruptions, so that everybody who needs to use the airspace can use the airspace. This is a very solvable problem. Mr. DeFazio. OK, thank you. Thank you, Mr. Chairman. Mr. Woodall. The gentleman yields back. The gentleman from Indiana, Mr. Rokita. Mr. Rokita. I thank the chairman, I thank the witnesses. I am learning a lot this morning. How wide is the keep-out zone, again? Is that what you call it? Yes. How--in miles, nautical miles or statute, what is-- what kind of area are we talking about? Ms. Schenewerk. Right. So it is--the hazard area that is around the rocket launch, the trajectory--so, essentially, if you imagine that I was going to launch from where I am sitting today towards Mr. Mitchell's placard there, then I would have an area of space that would travel with me that is closed along the way, that is a box around me. Mr. Rokita. Hundreds and hundreds---- Ms. Schenewerk. It is essentially a bubble. Mr. Rokita [continuing]. Of miles that is boxed out. Ms. Schenewerk. So the box travels out hundreds of miles, where the rocket--in the direction of the rocket's trajectory. But its width is in the--maybe I have to get back to you on that one. But it is not thousands or hundreds of miles wide. It is more that it is hundreds of miles long with the trajectory of the rocket. Mr. Rokita. So--and that accounts for debris, or not? Ms. Schenewerk. Right. The goal of that is to account for the idea that--of debris propagation from that vehicle. So if you were to have an unintended disassembly, then where that debris would fall from that vehicle---- Mr. Rokita. So, Captain, how is that different than a line of thunderstorms that you might have to get vectored around---- Mr. Canoll. That is a---- Mr. Rokita [continuing]. On any given day? Mr. Canoll [continuing]. Great analogy, because it is the same essential thing, it is denying use of the airspace. Mr. Rokita. Right. Mr. Canoll. We just don't fly---- Mr. Rokita. Which you deal with every day. Mr. Canoll. We do deal with it every day. Mr. Rokita. I dealt with it yesterday. Mr. Canoll. Yes. Mr. Rokita. So we deal with it. And in fact, weather accounts for 72 percent of the delay in the system. Mr. Canoll. Right---- Mr. Rokita. As we learned from another debate on ATC privatization. Mr. Canoll. The element being there we don't have any control of where the thunderstorms are, that is a force of nature. Mr. Rokita. Right, right. Mr. Canoll. This is something we can manage together. Mr. Rokita. Right. But we also learned that there is 22 launches or something from SpaceX alone, versus the thousands of air flights a day, and that kind of thing. So certainly many more lines of thunderstorms in a given day and a week than any kind of space launch. Are the three of you--I am looking at the companies--do you consider yourselves direct competitors? Especially with your change in business plan a little bit. Ms. Garehime. We certainly see ourselves as a competitor with SpaceX. We partner with Blue Origin. We are working together on a new first-stage engine. We haven't made a final decision on that yet. So we work with Blue Origin. But yes, we see SpaceX as a competitor. Mr. Rokita. Do you guys like each other, generally? [Laughter.] Ms. Garehime. We do. Ms. Schenewerk. Lovely people. Mr. Rokita. There are so many opportunities that there is room for everybody. But on the other hand, Ms. Powers, you have 1,400 employees. Is that right? Or--yes, 1,400 employees, and they are all being paid, and you have investors. But you haven't had a return on investment yet, have you? Ms. Powers. So we have entered into a number of commercial contracts. As Kelly mentioned, we are engaged with ULA for sales of our BE-4 engine. We have a number of customers that are interested in our engine production programs, as well as our suborbital and orbital launch capabilities. So for--taking New Shepard as the example, our suborbital launch vehicle that flies at our west Texas launch site, we have a relationship with the NASA flight opportunities program, we fly a number of suborbital payloads on every flight of New Shepard. Mr. Rokita. OK, thank you. Ms. Powers. So we are generating some amount of revenue. Mr. Rokita. I appreciate that. And Ms. Schenewerk, really quick, because I have some questions, if you wanted to add something there, you wanted to get a word in--OK. Ms. Schenewerk. That is fine, no. Mr. Rokita. So let's talk about the relicensing process example that you brought up, and performance-based regulation. That is intriguing, about--to me it seems performance-based regulation requires you to have data, in terms of outcome. And then it is either failure or success, and that is how you measure performance based. Go ahead. Ms. Schenewerk. Well, that depends on the performance metric that you set. Mr. Rokita. Yes. Ms. Schenewerk. Right? So in the case of this industry, we have a performance metric that is a level of safety. So can you protect the public to the 10 to the minus 6, which is the risk---- Mr. Rokita. Which the captain brought up. Ms. Schenewerk. Right, exactly, which is the flight safety analysis that occurs. Mr. Rokita. Yes. But you have to fly a bird. You have to fly something to get your data, to see if you are meeting that metric or not, right? The other way of regulating is a prescriptive way. Don't fly anything---- Ms. Schenewerk. Right. Mr. Rokita [continuing]. Unless it is done this way. So I get that. Does ALPA, Captain, believe in performance-based or not? Mr. Canoll. Yes, we believe in performance-based risk analysis. Mr. Rokita. OK. Mr. Canoll. And prescriptive is needed in some areas, but performance-based works. Mr. Rokita. Are you willing to partner with the---- Mr. Canoll. Absolutely. Mr. Rokita. OK. Mr. Canoll. Absolutely. Mr. Rokita. And then, with regard to NextGen or anything else the FAA is doing, do you find that the IT, Ms. Powers, that you all kind of referenced, is it being actively engaged in? I might have missed this in your testimony. Is it being actively engaged with in terms of NextGen or anything else the FAA is working on? Ms. Powers. Right. So this is an important point. The FAA developed an Aviation Rulemaking Committee focused on---- Mr. Rokita. OK, that is---- Ms. Powers [continuing]. Integration of the NAS. And one of the things they are focusing on very heavily is the development of tools like NextGen, SDI, some of the things---- Mr. Rokita. And, real quick, happy or not with that progress so far? Ms. Powers. I think the progress is slow. I think they could be developed more quickly. I think the resources and budgetary constraints are hindering that process. Mr. Rokita. Budgetary constraints, it is all about the monies. Ms. Powers. In many cases. Mr. Rokita. There is a lot of money out there. Ms. Powers. There is. Mr. Rokita. Captain, do you feel the same way? Mr. Canoll. I won't comment on the pace, I just want to make sure we do it in an order that doesn't violate any of the safety rules, and we got to fire out how to reconcile the difference in the safety 10 to the minus 6, 10 to the minus 9th when we get to that final end stage. We can do it. Mr. Rokita. So it is a little bit of a tango on what the performance metric will be. Mr. Canoll. Correct. Mr. Rokita. OK. Mr. Canoll. Correct. Mr. Rokita. OK, fair enough. Thank you, Chairman. Mr. Woodall. The gentleman yields back. The gentlelady from the District of Columbia, Ms. Holmes Norton. Ms. Norton. Thank you, Mr. Chairman. I thank these witnesses. This is exciting to hear of the rapid growth of commercial space in the transportation industry. And I don't-- nobody wanted to slow it down. But I would like to hear you elaborate on this 1-year timeframe for streamlining regulations. Now, I have been on this committee for a long time. I have never seen regulations done within 1 year. And, of course, Congress gets impatient with it, but here--and I go--because perhaps you elaborated more, Ms. Garehime, perhaps more than others, although Captain Canoll has spoken of it, as well. And your testimony has a headline that says ``Safety Must Remain the Top Priority,'' and I think everybody on this committee would agree with it. You indicate that--and I am looking directly at your testimony--you cite Atlas and Delta vehicles that apparently have considerable experience in launching. But you said during the--here I am quoting you--``During the regulation streamlining process, it has often seemed that the stakeholders being given the reins by Government to drive the conversation include companies that are very new to the launch market or have yet to fly anything in space. These companies may not understand how challenging it is to reliably and safely launch to space.'' So I would like to hear your comments on these twin goals, streamline regulations and make sure you do it safely, to ask you whether you think this can be accomplished. And, indeed, any comments you have would, I think, educate the committee we hold the industry accountable. Ms. Garehime. Thank you for the opportunity. You are right, Atlas and Delta are launch vehicles with 100 percent mission success, and we think we have the most experience in this realm. We are the most reliable launch provider. We think, with regard to the ARC process, it has been a very beneficial process. We have a lot of collaboration among industry, and we all agree--at least through the ARC process-- that the regulations should move to a performance-based approach. One thing that you mentioned was the timeline. So we have concerns that the timeline is so aggressive and now the ARC has provided its comments to the FAA and the FAA is off writing the regulations, and we understand at this point there won't be collaboration between the ARC and the FAA until the notice of proposed rulemaking comes out. So we have some concerns there-- -- Ms. Norton. So what does that do to the timeline? Ms. Garehime. What does that do to the timeline? Well, it probably--you would have to ask the FAA, but it probably makes it easier for the FAA to meet their deadlines without the collaboration, because if the ARC and the FAA were working together, that may delay the process with industry input. But if we wait until the notice of proposed rulemaking comes out for industry input through the ARC, our concern at ULA is that the regulations don't necessarily address the input that we provided through the ARC. Ms. Norton. Captain Canoll, you mentioned safety, and I can understand that pilots always think of safety first. But that may not mean everybody in the industry does. And I wonder what you think of this timeline. And if something must be sacrificed, what would you sacrifice? Mr. Canoll. So, as I mentioned before, that safety is going to always take precedence over any timeline that is established. There is just no way to avoid that. The FAA needs time to do their safety data analysis so that they propose rules that they are comfortable meet the safety standard, be it in the segregated airspace or in integrated airspace. There is just no variance on that. Whether we are sitting on the end of the runway, deciding if it is safe to take off now with the weather that is on our departure path, again, whether it is a scheduled operation with 300 people sitting behind you, you always default to the safest course. And if the safest course means we are not going to make the 12-month deadline, well then, we are just not going to make the 12-month deadline. Ms. Norton. I very much appreciate that understanding. I assume it goes for the entire panel. Thank you very much, Mr. Chairman. Mr. Woodall. The gentlelady yields back. The gentleman from Pennsylvania, General Perry. Mr. Perry. Thank you, Mr. Chairman. Thank you, folks, for your involvement today. I know we are talking about rules and the regulatory process, but I want to kind of look at it from a macro sense. And I lament that we have--I think at some point we were--at least in my mind--losing in this global competitive space market. And I think we have regained a fair amount, but I just want to kind of--that is how I want to kind of fashion my remarks, or my questions. You folks are on the forefront of commercial space operation. I am just wondering how is the U.S. space sector faring regarding our competition, globally? Are we doing better? Ms. Schenewerk. Well, so, sir, we are doing better at this point, in the sense that if there is 100 percent available, and we are capturing 60 percent, that is a lot better than we were doing 6, 8, 10 years ago. You are right. At one point in the 1980s we had 100 percent of that market, and we ceded it. Mr. Perry. Right. Ms. Schenewerk. And now we are recapturing it. And I think that is a source of pride, especially at SpaceX, but particularly for the Nation. Mr. Perry. Yes, I think it is a source of pride for the Nation. And I think us folks in Congress want to make sure we don't get in the way, right? We don't want regulations to get in the way. But as the Delegate from Washington said, if you are in aviation, it is all about safety. I mean that is just paramount, right? Nobody wants to, as you said--what was that, an unintended---- Ms. Schenewerk. Disassembly. Mr. Perry. Disassembly? That is a fascinating way of putting that. [Laughter.] Mr. Perry. That is interesting. But anyhow, so in that vein, we still want to deliver our astronauts to space. Ms. Schenewerk. Right. Mr. Perry. What is--but you have a vehicle that is ready to go, according---- Ms. Schenewerk. Correct, we are---- Mr. Perry [continuing]. To your testimony, right? So what is the---- Ms. Schenewerk. We are very excited and honored to be partnered with NASA in the commercial crew program to deliver NASA astronauts to the International Space Station from U.S. soil for the first time since 2011. That vehicle, the Dragon spacecraft, the crew version, on the Falcon 9 Block 5--have been built, and will be certified to meet NASA's requirements. That is a very specific, very high intensity---- Mr. Perry. Sure. Ms. Schenewerk. High, intense--very intense level of requirements to meet NASA's safety standards. Mr. Perry. And what is the timeline? What can our---- Ms. Schenewerk. So our first demonstration mission under the commercial crew program without crew is later this summer. And the second mission is supposed to be in December. And that is with two astronauts on board. Mr. Perry. And that will go to the International Space Station, or that---- Ms. Schenewerk. Correct. Mr. Perry. OK. Ms. Schenewerk. We will do a demonstration mission with two. Those--and following that, we will be carrying up to four NASA astronauts with an FAA-licensed launch for NASA to the International Space Station. Mr. Perry. OK. What about you folks? You are delivering everything without flaw, it sounds like. So when are you getting in the game? Ms. Garehime. We are in the game. Mr. Perry. OK. Ms. Garehime. So we also have a commercial crew contract with--we are the launch service provider under a NASA prime contract. And Boeing is our customer, and will be delivering astronauts, and---- Mr. Perry. Do you have a timeframe? Ms. Garehime. We do have a timeframe and we understand NASA will be providing an update in the near future. Mr. Perry. OK, all right. Do we have primary barriers in the United States vis-a-vis China, Russia that are problematic that this rulemaking tends to solve, or we are not going to hit the mark on that? Ms. Schenewerk. What I think that this rulemaking works to solve is creating an optimal regulatory regime for the U.S. Government to attract launches to the United States. So I have been personally contacted by representatives from other governments who are interested in learning from us about how we are reforming our regulations, because they are interested in not starting where we started, which is with the Air Force requirements from, you know, 20, 30 years ago, but with a modernized, streamlined approach. So like the performance-based approach that we are talking about implementing here. Mr. Perry. What do other governments that are competing-- what do they use? Ms. Schenewerk. So most other governments are just starting to develop their launch licensing regulatory regimes for---- Mr. Perry. But the ones that we are---- Ms. Schenewerk [continuing]. Commercial---- Mr. Perry [continuing]. Competing with now, the---- Ms. Schenewerk. So their government--yes. So the--it is more like having a government--essentially, government owned and operated system. So, as opposed to having a commercial licensing regime like we do, under which, you know, SpaceX flies predominantly, they have government systems. So it is more like being a commercial provider, where the government covers your system. Mr. Perry. And do they do the same thing--would--I think about it as a TFR [temporary flight restriction], but what did you call it? What is the terminology? Ms. Schenewerk. The hazard area, the coordination with their airspace. Mr. Perry. You called it something else, like a--it is not a no-fly-box, it is a--what---- Ms. Schenewerk. Well, they issue NOTAMs, notice to airmen-- -- Mr. Perry. Yes, yes. Ms. Schenewerk [continuing]. To implement what is a TFR, a temporary flight---- Mr. Perry. It is a TFR? Ms. Schenewerk. Yes, yes. Mr. Perry. It is essentially a TFR? Ms. Schenewerk. They used to be--yes. Mr. Perry. And they use the same thing? Ms. Schenewerk. Absolutely. Mr. Perry. OK. Ms. Schenewerk. Well, I don't--well, actually, I was going to say---- Mr. Perry. Or some---- Ms. Schenewerk. As far as other governments are concerned, I would assume that they are similar. But I am not familiar with aviation rules in other nations. Mr. Perry. OK. Thank you, Mr. Chairman. Time has expired. Mr. Woodall. The gentleman yields back. The gentleman from Georgia, Mr. Johnson. Mr. Johnson. Thank you, Mr. Chairman. In my home State of Georgia there are thousands of aerospace employees working for large aerospace corporations that export more than $8.5 billion in aerospace products annually. Additionally, the Georgia Institute of Technology School of Aerospace Engineering is the largest aerospace engineering program in the United States, and was ranked third in the 2014 rankings of the best undergraduate engineering programs by U.S. News and World Report. Because of our educational institutions, skilled workforce, and large manufacturing operations, I believe Georgia is poised to become a leader in the space sector if we remain vigilant and focused on preparing our workforce. As commercial space exploration increases, how will aerospace workforce needs change, and what should we be doing to prepare the next aerospace workforce? Ms. Powers. I will take that. I think what is important is there is amazing innovation going on in this industry right now. And some of the leading universities, much like Georgia Tech, is responsible for training the next generation of engineers that will innovate in that way. So when we talk about things like reusability and alternative architectures, finding the way to enhance the safety of these vehicles while driving cost down through innovative measures, that has been really, really important for this industry, and it will be, going forward. Blue Origin has proudly partnered with a number of great engineering universities to support those efforts. Mr. Canoll. I will add on that we have seen it quite dramatically in my profession, in my industry. Commercial success entices people to want to go join them. It is exciting, it is doing well. There is a career opportunity to be productive and add something exciting to the economy and to your family and to science, in many cases. It will naturally attract the best and the brightest. During periods of my industry, when bankruptcies were rampant and there was not any commercial success, we had a horrible time attracting people to become airline pilots. And we are paying for a little bit there right now. Over the last 10 years, though, it has improved dramatically, and the flight schools are full. So I think that is great evidence that if the expected commercial success we see from these companies happens, they are not going to have any trouble attracting people to the industry. Mr. Johnson. Thank you. And I will ask this of the panel. In your opinion are there any current FAA regulations that are inhibiting private-sector growth? Ms. Schenewerk. Well, I would say that there are examples within the launch-licensing regime, regulatory regime, that is inhibiting innovation, and that is the prescriptive approach to the expendable launch vehicle regulations in part 415 and 417. So if you look at a performance-based approach like we are advocating for, and you look at an example like flight safety systems, one of the most important aspects of our vehicle, and the thing, really, that is the focus of the FAA's regulatory approach, if you take a prescriptive approach, and you tell industry that this is exactly what to do to be safe, so to speak, then you limit innovation that can actually improve safety. And we see that with the flight safety system that is dictated by the current regulations. It takes a traditional approach, whereas we, at SpaceX, in partnership with the Air Force, have actually moved to what is called an autonomous flight safety system, which is a much more responsive approach to safety than a traditional flight safety system. And that would not have happened under the existing regulations. It happened because the Air Force took the initiative to drive that. We worked with the Air Force, and then we convinced the FAA to accept this other approach, despite the fact that their regulations demand a less-safe approach. Ms. Powers. And I will add--and I think an important point to that--given that the FAA licenses reusable launch vehicles differently. Blue Origin has been operating its New Shepard system from west Texas, and on board that vehicle is an autonomous flight safety system that we have used now for 2 years. And we were able to move through review of that system and vetting of that system with FAA under their reusable launch vehicle regulations because the approach of those regulations is not prescriptive. They are a system safety review, a performance-based review. And that is why we have advocated for using that set of regulations as the basis for development of a new set of regulations, going forward. So there is this dichotomy in the industry where some of us have been able to have a little bit of flexibility in innovation. And the primary hurdles that we see--back to your original question, are there regulations that inhibit progress--the process-based regulations, as far as how you move through the application process, are very, very difficult for the cadence that we are trying to achieve, as launch operators. So the 6-month review timeline of a license application, when you update something about the vehicle, having to maintain that information with the FAA and have them review, sometimes starting anew an entire license application. So FAA is a bit constrained into how they can move through the licensing process because of the existing regulations. And that applies to any vehicle architecture. And that is something that we focused on very heavily in this ARC effort to update. Mr. Johnson. Thank you. I have exceeded my time. Thank you, Mr. Chairman. Mr. Woodall. The gentleman yields back. The gentleman from Arkansas, Mr. Westerman. Mr. Westerman. Thank you, Mr. Chairman. Thank you to the witnesses. NASA says that there are up to 500,000 objects in space that are 1 to 10 centimeters in diameter, this water bottle is about 6 centimeters in diameter [holding up a water bottle]. And then over 20,000 objects that are over 10 centimeters in diameter, or roughly larger than the size of a softball, that are floating through space. And they also say that space junk can reach speeds of about 17,500 miles per hour. And if my math is correct, that is 530 times the speed of a .50-caliber machinegun bullet. So that is pretty potent objects that are flying through the galaxy, or through the atmosphere. And I have got a question when you think about safety and space travel. Is there a proper regulatory framework to provide commercial operators such as yourselves the necessary information to track this debris and to keep your launch vehicles--and in the future, astronauts--safe in space? And how do you coordinate with the Federal Government to track this? And I also read that even the space shuttle had damage done by pieces of debris the size of paint flecks, and there are millions of those floating around in space. Ms. Schenewerk. Excellent question, thank you. So in the course of undertaking the licensing--licenses that we receive from the FAA right now today for launching, we receive what is called a COLA, essentially a collision analysis to look for any kind of collision that would occur, most importantly, with the International Space Station, our permanently manned laboratory in space. And that helps us design our trajectories and our timing of our launch. It goes to the point that there is only so much movement we can have, so sometimes we can't launch on a specific day because of this collision avoidance concern. That is part of what happens today. And the JSpOC [Joint Space Operations Center] actually provides that service, so it comes through the Department of Defense. There are discussions underway led by the National Space Council--and I want to show appreciation for the work in the House Committee on Science, Space, and Technology, as well, on the space situational awareness piece of legislation that Chairman Babin, I believe, plans to move tomorrow. SpaceX supports that legislation and the idea of moving that space situational awareness service that is provided to launch operators, as well as to satellite operators. So our launch customers want to know that their satellite is going to be entering into an orbit that is safe, and that other things won't be colliding with it. Whatever the size may be. And that also goes to a point about the bill that is a very important one, and that is that we need to improve our capability of tracking. So one of the ideas behind the legislation that we certainly think is very important is improving the fidelity of the information that we receive so that it is more actionable for operators, be that satellite operators who might need to expend vital fuels, moving their satellites to avoid debris in space, or launch operators who are looking to book launch windows that perhaps don't disrupt the NAS quite as much. Mr. Westerman. Would anybody else like to address that? Ms. Powers. Well, I think this is a very important topic, and I echo many of Caryn's comments. The Department of Defense has provided this service for the industry for a long time. And looking at the increase in commercial activities in space, it is certainly understandable that we revisit whether DoD is the right person to be providing that service for all of industry any more. And we also support the efforts to move a lot of that capability to the Department of Commerce. Certainly the existing tools and infrastructure that are in place will still be relied upon and, hopefully, improved to make the entire system more safe as we increase the number of objects that are in space. So---- Mr. Westerman. Yes. So as we put more objects in space, that lends you to think there is going to be more space debris over time. Are there activities being taken to reduce the amount of space debris, and also any efforts to clean up some of the space debris? Ms. Schenewerk. So as far as reducing or containing the amount of space debris, when we launch to orbit, be it with our second-stage vehicle that is delivering a payload, or if we are going to be operating, for example, a constellation of satellites in orbit, there are requirements in the licensing of the launch vehicle, as well as operating spacecraft in orbit that go to orbital debris propagation, so their ability to protect against, as you indicated, debris in space causing a catastrophic event to that spacecraft, as well as any kind of propagation of debris. So, for example, at SpaceX we often deorbit our second stage, or we move the second stage into a safe parking orbit. That is part of the licensing regime. So the license regime looks at the safety of the public through the NAS. But in that regard, with the vehicle itself, it looks to the space safety, as well. And I will assure you that SpaceX is certainly very interested in preserving the space environment, as we not only want to launch our own constellation, we want to launch customers, and we want them to all be able to operate safely in space. Mr. Westerman. Out of time, Mr. Chairman. Mr. Woodall. The gentleman yields back. The gentlelady from Nevada, Ms. Titus. Ms. Titus. Thank you very much. A lot of my technical questions have been asked and answered, but I would just like to continue with this notion of how crowded space is getting, and not just with this trash that is floating around. If you look at our airspace, now you got more small regional airlines, you have got more international flights that can travel longer, you have got open skies, you have got the UAV [unmanned aerial vehicle] industry that is out there, we have got a possible creation now the President has talked about a space force, and now this commercial space industry. I am wondering, if you move from accommodation to integration, are all of these people at the table with the FAA, which tends to be very slow and hidebound anyway, or are you just operating in silos and then we are going to have to put it all together somewhere down the road? Mr. Canoll. So, in the instance of the NextGen Advisory Committee, most representatives--I do not believe there is a commercial space operator on the NextGen Advisory Committee. ALPA is a member of the NextGen Advisory Committee. The Drone Advisory Committee is another one where we have good representation, but I don't think it is all-encompassing. And Commercial Space Transportation Advisory Committee, ALPA is not a member of that. A lot of the issues solved in this--and you are absolutely correct, it is a finite resource, the national airspace--that we need to find ways to accommodate all these users. We just have to. And, technologically speaking, there are ways to do it. But it is going to take all the players to be in the same room. So we would urge to expand the cross-section on the NextGen Advisory Committee, the Drone Advisory Committee, and the Commercial Space Transportation Advisory Committee, to include all the players. Ms. Titus. Did you all hear that? Ms. Powers. I think those are great points. I will highlight that the Aviation Rulemaking Committee focused on national aerospace issues and integrations and space ports. That seems to be an effort to engage a lot of these interests that have not previously been on the same panels together. So that seems to be the one recent effort that does the best job of bringing all of these interests in to collaborate on some of these issues. Ms. Schenewerk. And I will add that the Federal Advisory Committee, the FACA for commercial space, the COMSTAC, the Commercial Space Transportation Advisory Committee, was recently reinstituted, and it includes not only, I think, stakeholders from every aspect of the aviation industry, but was actually reconstituted with aviation members for the first time. Ms. Titus. That is good. My other question is it is called commercial space transportation activities, and yet what I have heard you all say is you have contracts with NASA to take some astronauts to the International Space Station, you depend on the Department of Defense for tracking the trash that is out there, you work with the Air Force. What are you doing commercially? What are you doing in the private sector? Is this for tourism, is it for scientific research, is it for communications, is it just because you can fly out there and want to prove it? What are some of the commercial applications you anticipate? Ms. Schenewerk. Well, I will point out that our ranking member today noted that there are $158 billion of space investments occurring on an annual basis. And the majority of those are actually satellite-related. So satellite manufacturing, satellite operations. So DIRECTV, communications, the Wi-Fi on board your flight across the country, all of those kinds of applications that we see, in addition to the Government applications that you noted. So the majority of SpaceX's contracts are actually commercial contracts. They are to launch those satellites, the commercial satellites that provide those services for commercial entities to space. So while we do provide launch services to the U.S. Government, one of the things that is notable about the way that we provide those services is that we provide them under a firm, fixed-price contract. And that is a commercial-like contract. So that is why you hear commercial space talked about even with regard to NASA, like the commercial crew program, or the commercial transportation program for delivering cargo to the space station. It is because those are conducted under commercial-like contracts. But it is important to know that we had 18 launches at SpaceX last year, 17 of those were FAA-licensed as commercial- style launches. And the majority of those were for commercial customers, non-U.S. Government customers. Ms. Garehime. Right now ULA does work with the FAA for commercial--like Caryn was saying, commercially licensed contracts. In the past we have worked with various companies-- Digital Globe, EchoStar, the Cygnus missions--I am sorry, not Cygnus, it is--the name is escaping me. But we have had strictly commercial missions. Right now we--our commercial missions are--have Government end customers. But again, our fixed-price contract is licensed through the FAA. And then, looking forward, we expect to have more commercial missions with, for example, Astrobotic, which has a lunar lander that--it is planning to launch in the 2020 timeframe. So the different launch services really vary across the board. Ms. Powers. And I will add from Blue Origin's perspective. Every example that you provided of a commercial endeavor are ones that we are currently undertaking and pursuing. So we have private research interests whose payloads we are launching on every New Shepard flight. We also--I mentioned our collaboration with NASA, so we are launching payloads with Government interests, too. We are very, very methodically and rapidly moving towards a day when we will fly private astronauts to space. So we certainly envision a day, not just on our New Shepard program, but also on our New Glenn orbital vehicle program that we are developing, where we will fly commercial satellites, we will fly commercial research payloads, as well as Government payloads, as well, and Government satellites, as well as people. So Government astronauts, private actors. We approach this as we are providing a commercial service, a commercial launch service, to whatever type of customer might be out there wanting to get to space. So our approach is we are not providing Government launches when we have a Government payload on board; we are providing commercial services to a Government customer, a private customer, a commercial business entity. So we hope to cover the entire scope that you mention in your question. Ms. Titus. Well, let's promote tourism. I am from Las Vegas, we always believe in tourism. Thank you. Mr. Woodall. The gentlelady yields back. The gentlelady from Michigan, Mrs. Lawrence. Mrs. Lawrence. Thank you. Panel, I have a very strong passion for workforce issues. Today every industry is facing challenges for a skilled workforce. Standards of education, barrier to entry, lack of collaborations between public and the private sector, racial and gender diversity are just a few of the factors that impact our workforce. In the next 10 to 15 years it is estimated that the size of the global space economy will nearly double. To meet such needs, the workforce also has to grow. So what do you believe we need to do to ensure that we have a workforce equipped to manage the future commercial space transportation venues and projects. I have been in contact with the--worked closely with the pilots, knowing there is a critical need now for pilots in the commercial arena. And now we are talking about the space arena. So please comment. I will start with you, Captain. What-- when we start elevating--and this all sounds good, and we get the laws and the plans. Will we have the workforce ready to step in and do the work? Mr. Canoll. So I completely agree. We have to have a long vision here to understand how we are going to do it. And not everyone is suited for the same job. The aptitude for becoming an aerospace engineer is different than an aptitude for becoming a pilot. Someone has to desire it, as well. To my earlier point, success breeds desire from those who look at the industry that they are beginning to really grow at a rapid rate now will breed success and those will want to be part of it. But there are challenges in making sure everyone has an equal opportunity here. Currently, we do have a dip in the availability of pilots, due to the factors I mentioned earlier, where, for example, the industry was doing very poorly, and I personally took a 42- percent pay cut, lost my retirement. My benefits were slashed. We have built back, and people are starting to come back to the industry, but still, only 6 percent of airline pilots are women in this country. That has got to be addressed. So we are taking efforts to ensure at even the primary school level, that our association is out there, visiting thousands of schools every year, making sure that the guidance counselors and the kids are exposed to aviation as a potential career early on, so that they find out if they have the aptitude and they want to join this. And I would urge our friends from commercial space to do the same thing. There is a natural attractiveness to commercial space. I mean it is the Buck Rogers effect. People are going to want to do it. That doesn't mean you are going to get the cross-section from society that you really need to do it. Mrs. Lawrence. Yes, Ms. Powers. Ms. Powers. Well, you have touched on something that I am personally very passionate about, and I am proud to say that Blue Origin has a great interest in this, as well. I was an engineer for a long time before I became a lawyer. So something that I have great interest in is making sure that I personally and Blue Origin, as a company, supports STEM efforts for young children in grade school and high school. We have a number of outreach efforts that many Blue Origin employees are engaged in to make sure that young children and high school students have the opportunity to be exposed to science and technology and engineering, regardless of their gender, regardless of their race, regardless of their socio- economic status. Mrs. Lawrence. Thank you. Ms. Powers. This is very important to us. And the other thing that I am very proud to talk about as far as Blue Origin's efforts is we have an amazing university outreach program that organizes a number of women's and diversity initiatives. We have events on our campus in Seattle, where we invite women of college age to come and interact with our engineers and learn about the work that we do at Blue Origin, and to support tech careers in technology and engineering. And we very proudly partner with some of the Michigan universities, too. Mrs. Lawrence. And the next two comments, could you just tell me also--because we talk about the engineers, but there is a whole workforce that is needed that is not an engineer, it is the skilled trades, like your electronic technicians, your computer programmers. And this is a work group that we know is the--growing and the most abandoned right now workforce, because if you do not go to college, there is still an amazing amount of opportunities in skilled trades. Will you please talk to that? And I just want to say, Ms. Powers, thank you for saying socio-economics. Because a child is not in this elitist zip code does not mean that child does not have the capacity nor the dream to enter into the commercial space industry. And frankly, because the baby boomers are dropping off and this industry is growing, we are going to have to look past our bias that if you are poor you don't belong in this industry. And women have traditionally been bypassed. So thank you for that. Ms. Schenewerk. And Representative Lawrence, I want to point out that the child that you are speaking of that might come from that socio-economic background that is a little bit more challenging could grow up to be one of the technicians that we depend upon at SpaceX. You know, I am very honored to be part of a 6,000-strong workforce that does include engineers, but that heavily relies on technicians that come from a whole host of backgrounds. So today that means that we hire folks that were working in the house-building industry, maybe the automotive industry, and we bring them in and we train them to work in aerospace because when we started building this company, there weren't exactly dozens and dozens of aerospace-trained engineers and technicians who were looking to start at a new startup company that was wanting to be as innovative as SpaceX is. And so we are very honored to have those very important members of our team. I am also honored to work for the president of our company, Gwynne Shotwell, who works tirelessly to promote women's engagement in the aerospace industry, and also honored to be part of various interest groups within the company. So while we work external to the company to promote these interests, we also have really good, strong support networks within our company that we understand are vital to maintaining that workforce internally, and also to then promote our efforts externally. Mrs. Lawrence. Thank you. Mr. Woodall. The gentlelady yields back. While we have all of this expertise gathered in one place, with your indulgence, we would like to pursue it. I would like to yield to a second round. The gentleman from Washington, Mr. Larsen. Mr. Larsen. Thank you, Mr. Chairman. I want to go back to something Ms. Powers said nearly an hour and a half ago, I guess, and it was about the use--the DoD site, and then--and therefore, the requirement that you have to use USAF requirements, even if you have an RLV. And so the question is then why did you use it? And second, you know, must you use it? And third, what would be the alternative if the requirements didn't change? Ms. Powers. And, I am sorry, why did we use the---- Mr. Larsen. You said you--no, the--because you used a Federal range, you had to do the prescriptive---- Ms. Powers. Right. Mr. Larsen [continuing]. Rules, even though you are using an RLV. Ms. Powers. Right. Mr. Larsen. Yes. Ms. Powers. Why did we go to a Federal range? Mr. Larsen. Yes. Ms. Powers. Yes. So there is--I think probably secret to no one, there is an amazing legacy that exists at our Federal ranges. There are folks working for the Space Wings that have a great deal of expertise in this area. And we saw it as a benefit not just from existing infrastructure that was already there--there are launch pads and launch sites where we had the opportunity to either refurbish or build new structures, relying on the infrastructure that already existed. We definitely have brought a commercial approach to that relationship, and this is where we see the struggle with the prescriptive requirements in many ways, whether it is building infrastructure or launching and returning a vehicle to that location. So it was definitely a cost-benefit analysis, and we decided that we had an opportunity to go to a Federal range and rely on some of that amazing legacy expertise and infrastructure and the support that they could bring our program, while also progressing that model forward to be accepting of a more modernized, commercial approach in some ways. So we see it as a system that can progress the same way that the administration has directed---- Mr. Larsen. Yes. So---- Ms. Powers [continuing]. That the Air Force progress. Mr. Larsen. So if, as the numbers show, the commercial launches out of the U.S. are going to increase, does that become less of an incentive as the numbers increase to use Federal ranges? Ms. Powers. To use---- Mr. Larsen. Or is it more of an incentive? Ms. Powers. Well, I will say, given that we also have the experience of flying New Shepard at a private launch site, we enjoy a lot of flexibility at our private launch site that we don't see at Cape Canaveral. And we feel that we have succeeded at setting up a vehicle that operates very safely from a public safety perspective at our west Texas launch site, and there are a lot of benefits to operating from a private site. And I think we have seen, with the increase in the number of space ports in any number of locations around this country, that other actors might be behaving in the same way. Mr. Larsen. Yes. Ms. Schenewerk, do you have a comment on that? Ms. Schenewerk. Sure. One of the comments that I would like to make about being on a Federal range versus being on a non- Federal range--and we are on both about 3 miles apart from each other--is that when we operate with the Air Force, one of the benefits is the Air Force's ability to update its requirements with some level of regularity and ease that does not exist to rules that are written in the Federal Register and subject to the Administrative Procedures Act. So what we see as being---- Mr. Larsen. Some would see that as--for some things, yes. Ms. Schenewerk. So for one of that actually drives one of the recommendations that we have with regard to the FAA rulemaking process, which is to create a performance-based approach, but then move--you could move some of the things that are prescriptive in the ELV regulations to guidance or to advisory circulars that could be updated more regularly, and then you could accommodate these operations under two different authorities in a much more streamlined manner, and they could keep pace with each other much better. Mr. Larsen. Yes. Ms. Garehime, do you have a thought on this, as well? Ms. Garehime. Well, ULA operates at the Federal ranges. Mr. Larsen. Yes. Ms. Garehime. Only at the Federal ranges. So no real comment there. Mr. Larsen. So--OK, that is fine. That is fine. It is about 10 members of this committee that are also on the House Armed Services Committee, and it might be time for the 10 of us to-- probably past time for the 10 of us to maybe sit down as a group amongst ourselves and brainstorm this cross-over between DOT and DoD. Can I get some clarification on the use of the NAS for launches that--generally, do each of you believe that the technology is progressing and we have the people to narrow the amount of space that we absolutely have to use for commercial launches to address some of the issues about conflict in the NAS? Generally? Ms. Powers. I think we absolutely do at this time. There have been a number of initiatives in the past, some of them mentioned today---- Mr. Larsen. OK. Ms. Powers [continuing]. That just really need to be finalized, right? So we have practiced and achieved flowing telemetry from flying space vehicles into the data center in New Jersey. And the final piece is getting those integrated into the air traffic system so that air traffic controllers can actually rely on that data. Mr. Larsen. Yes. Mr. Canoll. Yes, I agree. I think the real-time data will allow us to shrink the airspace that we have to segregate. The next step after that--because that will limit it to a certain point--is the actual integration, so there isn't segregated airspace. They are operating with us. Mr. Larsen. Right. Mr. Canoll. That is where we run into the problem of adopting a 10 to the minus 9 or 10 to the minus 6. There is the challenge, scientifically. Mr. Larsen. Yes. Ms. Schenewerk. In that regard, my understanding is that we are years out from this if we don't expedite that approach soon. So right now there are folks within the NextGen office who are looking at how to design those. They have been running some test cases and designing some tests of this capability. They have some designs. But there is a next level of procurement that needs to occur, and then an integration testing and verification that needs to occur. I have been told that that could be as long as 7 years. Mr. Larsen. Yes. Ms. Garehime? Ms. Garehime. We are just becoming part of this conversation through the airspace integration ARC, and I think there is a lot of education that needs to be done on both sides. We just participated in the ARC committee meeting where we learned the airlines' perspective, and we have agreed to give a similar presentation back to the airlines, so that they can better understand why do we have these long launch windows like some of the other panelists have discussed. So I think there is a lot of work that needs to be done, and we are doing that through the ARC. Mr. Larsen. OK. If the chairman will indulge me--thank you. So Captain Canoll testified earlier about the presence of the moratorium until--is it 2023? On a lot of what the FAA can do, but there are some exceptions. But yet your argument, Captain, is that it doesn't prevent the FAA from working on these issues that it might be able to bring folks together outside of regulation because there are outstanding issues that need to get addressed. Is that generally what you---- Mr. Canoll. Absolutely. We shouldn't wait to 2023 and begin the process. We can start right now. As a matter of fact, we must start right now if we want a nice set of comprehensive, safe procedures and rules for us to jointly operate in the national airspace. We have to start right now. Mr. Larsen. Well, I think we have to clear the room after we are done with the hearing, but maybe you guys could meet out in the hall. Mr. Canoll. I am willing. I got the rest of the---- Mr. Larsen. It is that urgent. Do the rest of the panelists believe the same, you don't need to be waiting for the moratorium to lift, because---- Ms. Schenewerk. So---- Mr. Larsen [continuing]. And my personal view--this is kind of a classic thing, where Congress will come to 2022 and say, ``Let's extend it for about 5 more years,'' which may be a good idea and may be a bad idea. But it is a matter of work having to get done being stymied by a moratorium that may not be necessary at the time, so---- Ms. Powers. I think it is important to clarify that that moratorium is applicable to passenger safety. So human astronaut---- Mr. Larsen. Yes. Ms. Powers [continuing]. Safety on board the vehicle. Mr. Larsen. OK. Ms. Powers. The airspace issues, those are within the realm of the public safety efforts that are ongoing. So there is just a little bit of a difference there. Mr. Larsen. Sure. Ms. Schenewerk. Yes, that is a very important point of clarification, and I think a misconception about this learning period. The FAA regulates our activities for public safety so that is to prevent harm to any people or Government property on the ground or in the air or at sea. So it is regulated for that safety aspect. This question of the learning period specifically has to do with carrying human space flight participants on board a spacecraft. So as far as the public is concerned, the difference between having a human on board and having a satellite on board is--it is the same level of safety to protect the uninvolved public. I will also point out that many of us that are engaged in carrying human space flight participants, we are doing so at SpaceX in collaboration with NASA. So we are building our Dragon spacecraft to meet NASA human space flight requirements, and to achieve their certification level. So that is a significant level of what you could otherwise call regulation, but because it is NASA it is requirements that go to the design and build and operation of that vehicle. Mr. Larsen. Right, right. Ms. Garehime? Ms. Garehime. We think it is time to start the discussion about ending the moratorium. Mr. Larsen. Yes, OK, great. So thanks. In closing, I would like you all--and I invite the subcommittee, if it is possible--to come back and report in a year, once the FAA has issued its proposed rule. Clearly, there is still a lot of opportunity to ensure the continued growth and success of the commercial space industry, but being mindful of the safety mandate. And I would be interested in hearing from all of you before then, as well, but--on what the FAA's proposal seems to address and what requirements might need further evaluation and time to work through. So thank you, and thank you, Mr. Chairman. I yield back. Mr. Woodall. The gentleman yields back. Captain, I was looking at the enthusiasm on your face when you were talking about your Buck Rogers moment there. I don't know how many folks that reference might have been lost on, it is becoming more and more dated. Mr. Canoll. Legacy reference, sorry about that. [Laughter.] Mr. Woodall. Folks are excited, though. I have got a letter here from all 14 Georgia congressmen promoting a space port down in Camden County. As you may know, we don't have any folks committed to flying out of there yet, though we would love to share that with the folks who are interested. But that kind of enthusiasm is driving a lot of these discussions. I saw in your testimony your concern that commenting before you know how a facility is going to be used makes it a little more difficult to comment. Distinguish for me, thinking about a legacy reference, if I am thinking about BQK, our little Brunswick Glynn County Airport down there on the coast, we can come and expand that airport's purpose many times over many years, separate comment period for each expansion down there, lots of opportunity for folks to get involved. How are we disadvantaging American airspace with commenting before we understand an intended purpose for a space port, rather than after? Mr. Canoll. So I don't think I want to use the word ``disadvantaging,'' because someone is going to use the airspace for their benefit, be it unmanned aircraft system or be it commercial space transportation. Someone is going to use it. It is a matter of fairness in who got displaced so we can do it. Mr. Woodall. OK. Mr. Canoll. Short of our implementation, or integration, complete integration, we are still stuck with this, well, we have to displace the users while we launch. OK? Even for a short period. And if you take the south Georgia proposal, the issue there is while there isn't a lot of local traffic, except for maybe Savannah nearby, Jacksonville just to the south, there is a tremendous amount of north-south overhead traffic transiting up and down the east coast. And if you were to look at the FlightAware diagrams, you would see that. So the concept in that instance would be, OK, we are going to authorize the space port, but we really don't know what it is going to do--to your point--until we see what the operator intends to fly out of the space port. So it is a little disconnected right now. We think, you know, a joint application, so you could see the whole picture when making comments as to the impact, not only from a safety perspective, but from the economic perspective for my members to have access to the airspace that they need to earn their income. Mr. Woodall. It certainly makes sense, limited resource, understand the impact on other potential users of the resource. From the commercial perspective, you would agree with the captain, that we should understand what the use of a space port would be before we initially license it, or that we are advantaged by licensing first and understanding utilization later? Ms. Schenewerk. So one of the things that I would like to point out about this--and this isn't an agreement or a disagreement--is that when a space port puts forward its application, my understanding is they have to--and I have not undertaken this effort, but this is my understanding--is that they have to put forward types of vehicles and types of trajectories that would be launching from that site. But that is separate and apart from the actual launch license that an entity would have to get to even be able to operate from that site. So if you are going to have a space port and a licensed space port that is going to be a multiuser space port, that space port can get a license that covers the idea that you would have activities there. But any operator of a launch vehicle or a reentry vehicle is going to have to go and acquire a separate license covering their specific activities, their kinds of trajectories, their kind of vehicle, and their kinds of operations from that site. Mr. Woodall. Now, understanding that Congress is sometimes slow and delay is often the norm, as Mr. Larsen just referenced, help me understand when--if we are setting deadlines, of when the synthesized airspace should occur, the day we leave blocked space, and we have a synthesized system. Your expectation as experts in the field is that that date is when? When are we prepared, as an industry, even if we are not yet prepared as regulators? Ms. Schenewerk. For the--clarification. For the NAS integration tools that we are looking at? Mr. Woodall. That is right. Ms. Schenewerk. Yes. So we are prepared to work today--we already are, actually, through the Space Data Integrator--to provide our trajectory data directly to the FAA to be integrated into a tool that could show a controller our vehicle on the scope as it moves through the NAS. So that is something that we are eager to engage in today. I think that our understanding is that the timeframe is a little further out, due to the testing and procurement and integration schedule that is part of the FAA process. But as far as SpaceX is concerned, we would happily build that tool together and provide that information today. Mr. Woodall. Captain, as one who represents all the other users of the airspace today, are--do you feel like we are prepared to move in that---- Mr. Canoll. We are certainly getting closer. There are other tools that will be needed to actually make it a reality. It is a great enhancement to have the real-time data of the space vehicle transiting the national airspace. But the controller not only has to go through training, and has to be tested, and has to be verified, there is a slight difference--excuse me--the controller today has the ability to control the airspace. It sees a user and says, ``No, you need to turn right to 270.'' Well, that is not an option in this instance. You can see it, but you can't manipulate it. You are just using it for deconfliction purposes to shrink the amount of airspace needed to be deconflicted. The follow-on is the one we need to keep working on. This is a good program that is going to really advance our ability to operate multiple users in the airspace. But we need to be thinking always to the next generation. I hate to use that term, because we are always working on it. And you always think, well, we have reached the next generation, we are done. No, it is the one after that that we need to be focusing on, as well. Mr. Woodall. Yes. I did watch ``Hidden Figures'' on the airplane coming up here, and I did see the Atlas heavily referenced there in the 1960s--I don't know what next generation means, in terms of Atlas, but, well, that is a different conversation for a different day. Thank you all so much for committing your time and your intellect to the committee today. And if there are no other questions from committee members, the committee stands adjourned. [Whereupon, at 11:52 a.m., the subcommittee was adjourned.] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]