Commercial Space Industry Seeks Regulatory, Policy Changes
Commercial space operators recommend harmonizing satellite spectrum allocations globally, and ensuring the FCC and other regulatory agencies are fully staffed and resourced, they and the Aerospace Industries Association (AIA) said during a House Aerospace Caucus panel discussion Tuesday.
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AIA released an analysis of the U.S. space industry and competitiveness recommendations. AIA said space is a $335 billion industry globally, with 77 percent of that being private sector spending. The U.S. space industry often suffers from "self-inflicted wounds" in the form of policy decisions like export controls on aperture sizes that have resulted in imaging satellite sales going to foreign manufacturers, said AIA Vice President-Space Systems Frank Slazer. AIA recommends export rule changes beyond those adopted in 2014, with the goal of loosening U.S. munitions list and missile technology control regime (MTCR) restrictions. It recommended unspecified incentives for minimizing and reducing orbital debris and use of commercial space offerings whenever possible for federal agency needs.
Federal tax changes could dramatically benefit the domestic space industry since international competitors operate under lower corporate tax rates, said Lockheed Martin Vice President-Technology Policy and Regulation Jennifer Warren. She said lawmakers and regulators, when looking at a particular industry sector's spectrum needs, must ask how that could affect aerospace industry plans. "We're not being asked," she said: Spectrum "is being taken away and repurposed. It shouldn't be an either-or."
Broadly, the government should take a stance of unregulated permission except in cases where government needs to restrict activities, said Virgin Galactic Vice President-Business Development and Government Affairs Richard DalBello. He said the light regulatory touch so far for commercial manned space flight helped growth. "This new industry isn't ready" yet for airline-level safety regulations, he said. He said government isn't balancing MTCR rules with commercial applications like manned space flight, leading to an almost complete blockade of any international partnerships in those types of applications. "These sorts of rules ... need to be rethought," he said.
Speakers cited the relative inaction of the Export-Import Bank as a big stumbling block for the domestic commercial space industry. Warren said Lockheed's principal international competitors have access to national export credit agencies, but the current $10 million cap on Ex-Im projects provides an insignificant amount for the aerospace industry. Not having a fully functioning Ex-Im "is like unilateral disarmament in exports," said Boeing Vice President-Space, Intelligence and Missile Defense Jeff Trauberman. The Trump administration nominated two Ex-Im appointees in April (see 1704210048) who, if confirmed, would bring it back up to quorum and allow it to provide credit support to projects bigger than the $10 million cap.
The White House is seemingly close to restarting the interagency National Space Council (see 1703310027). That body likely will take on some high-profile, interagency issues like possible changes to U.S. space traffic management policy, DalBello said.