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Congressional Research Service
Inforrming the legislative debate since 1914


                                                                                                  May  19, 2023

Commercial Space Launch and the April 2023 Starship Mishap


The commercial space industry, including the launch sector,
has been expanding rapidly (see Figure 1). A mishap
during a test of a new rocket in April 2023 has drawn
congressional attention to issues such as federal regulation
and licensing of commercial space launch, safety and
liability, and the use of commercial space capabilities by
the National Aeronautics and Space Administration
(NASA)  and other federal agencies.

The   April  2023   Mishap
Space Exploration Technologies Corporation (SpaceX) is
developing a new, very large rocket called Starship. It is
designed to be the most powerful rocket ever built.

On April 20, 2023, a test flight of Starship from a SpaceX-
owned  launch site in Boca Chica, TX, flew for about 4
minutes, reaching an altitude of about 24 miles. At that
point, problems with several of the engines caused SpaceX
to order the rocket to self-destruct.

SpaceX  collected a significant amount of data from the test
flight, and from that perspective the test was at least a
partial success. However, not everything went according to
plan. Along with the early termination of the flight, the
rocket engines caused extensive damage to the launch pad,
a fire was started on parkland near the launch site, and
debris from both the destroyed rocket and the damaged
launch pad was scattered over a wide area, raising concerns
about both safety and environmental impact.

Shortly after the mishap, a group of environmental and
cultural-heritage organizations filed a lawsuit against the
Federal Aviation Administration (FAA), which has the
responsibility for regulation and licensing of commercial
space launch, for authorizing the Starship launch. The
lawsuit seeks to revoke the Starship launch license and
require the preparation of an environmental impact
statement before a new license can be issued.

How Does the Federal Government
Regulate and License Commercial Space
Launch?
In 1984, the Commercial Space Launch Act (P.L. 98-575)
assigned responsibility for commercial space launch
regulation and licensing to the Department of
Transportation (DOT). That act, as amended, is codified at
51 U.S.C. Chapter 509. DOT has delegated these
responsibilities to the FAA Office of Commercial Space
Transportation (AST). Companies must obtain a launch
license from the FAA and comply with the regulations it
issues with respect to safety, financial responsibility,
oversight, and other topics (see 14 C.F.R. Chapter III).


As part of the licensing process, AST also conducts a
payload review and an environmental review. The payload
review is to make sure that payloads carried by the launch
vehicle have all the required licenses and approvals from
other agencies, such as the Federal Communications
Commission  and the Department of Commerce. The
environmental review is to ensure compliance with the
National Environmental Policy Act and other requirements
(for more information, see CRS In Focus IF11549, The
Legal Framework  of the National Environmental Policy
Act).

The FAA  license under which SpaceX conducted the April
2023 test is valid for five years, but only for one flight (the
one in which the mishap occurred) unless the FAA modifies
it to allow additional flights. Under 14 C.F.R. §450.9, the
FAA  may  modify a vehicle operator license at any time by
modifying or adding license terms and conditions to ensure
compliance with the Act and regulations. In the case of
Starship, the FAA has said it will not allow a return to flight
until it determines that any system, process, or procedure
related to the mishap does not affect public safety.

Figure I. Launches Licensed  by the FAA, 20 12-2023


   40                                          to 5/18


   20

     1    2202           ZQ2                1     i


                        La-endar Year

Source: CRS, based on FAA data.
Notes: Data for 2023 are for launches through May 18. Licensed
launches only (excludes launches under experimental permits).

H ow   Are   M ishaps   Investigated?
The details of commercial space launch mishap
investigations depend somewhat on the nature of the
mishap. In most cases, the launch company itself has the
primary responsibility to investigate what happened and
why, but the FAA oversees and participates in that
investigation and generally does not allow further launches
until the company has identified and resolved the root cause

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