SUPPLEMENTARY INFORMATION:

I. Overview

In accordance with the policy of streamlining commercial license and permit approvals set out in Executive Order (E.O.) 14335, “Enabling Competition in the Commercial Space Industry,” FAA proposes to amend its commercial space launch and reentry regulations to allow for submission of license and permit applications and waiver, alternative time frame, and safety element approval requests through electronic means approved by the FAA Administrator. This change would allow applicants to use FAA's new Licensing Electronic Application Portal (LEAP) without having to apply for a waiver. LEAP would increase the efficiency of processing of commercial space license applications and provide industry with greater transparency on the status of their applications. In addition, FAA proposes to remove the option for applicants to submit license and permit applications, waiver requests, alternative time frame requests, and safety element approval requests via paper application. FAA would continue to allow email and physical electronic storage for application submissions.

II. Authority for This Rulemaking

The Commercial Space Launch Act of 1984, as amended and codified at 51 U.S.C. 50901-50924, authorizes the Secretary of Transportation to oversee, license, and regulate commercial launch and reentry activities, and the operation of launch and reentry sites within the United States (U.S.) or as carried out by U.S. citizens. Section 50905 directs the Secretary to exercise this responsibility consistent with public health and safety, safety of property, and the national security and foreign policy interests of the United States. In addition, section 50903 requires the Secretary to encourage, facilitate, and promote commercial space launches and reentries by the private sector. As codified in 49 CFR 1.83(b), the Secretary has delegated authority to the FAA Administrator to carry out these functions. ( printed page 63181)

III. Background

On August 13, 2025, the President issued E.O. 14335, “Enabling Competition in the Commercial Space Industry,” which articulated the goal of “[enhancing] American greatness in space by enabling a competitive launch marketplace and substantially increasing commercial space launch cadence and novel space activities by 2030.” The E.O. further stated that “[t]o accomplish this, the Federal Government will streamline commercial license and permit approvals for United States-based operators.” This proposed rule is being published in furtherance of this policy.

In accordance with its statutory authority, FAA currently issues licenses for the launch of a launch vehicle, the operation of a launch site, the reentry of a reentry vehicle, and the operation of a reentry site. FAA also issues experimental permits that allow a person to launch or reenter a reusable suborbital vehicle. Regulations governing the issuance of these licenses and permits are located in 14 CFR chapter III. The procedures for submitting applications for these licenses and permits are located in part 413.

FAA is currently developing the LEAP platform through which applicants can submit applications electronically. However, current § 413.7(a) provides that an application may only be submitted by paper in duplicate, via email to ASTApplications@faa.gov, or by providing the application to FAA on a physical electronic storage device, such as a USB flash drive or external hard drive. This restriction would prevent applicants from submitting applications via LEAP, when it is finalized, without first obtaining a waiver from FAA.

IV. Discussion of the Proposal

The proposed rule would add “other electronic method approved by the Administrator” as a submission option in § 413.7(a) to allow FAA to accept applications via electronic methods not contemplated by the current regulation. FAA anticipates that the change would help streamline the licensing process by allowing for application submission using the most current electronic methods. Furthermore, the proposed change is necessary to allow applicants to submit applications via LEAP, once it is finalized, without having to apply for a waiver.

In addition, the proposed rule amends § 413.7(a) to remove the option for applicants to submit license and permit applications by paper. License and permit applications are typically reviewed by FAA teams. Each member of the FAA team has access to all of the application documents in a shared electronic location, thereby allowing FAA team members to view the documents simultaneously. Applications submitted by paper do not allow for this flexibility and are therefore more cumbersome and time-intensive to review than electronic submissions. Furthermore, no licensed operator has submitted a paper application to FAA during the last two decades. Likewise, FAA does not anticipate that any future applicants will seek to apply for a license or permit by paper. Therefore, FAA anticipates that removing the option would have little impact on applicants but could potentially save time and resources for FAA in the unlikely event that an applicant is considering submitting a paper application.

The proposed rule would also make changes to parts 404 and 414 to align the methods by which applicants may submit waiver requests, alternative time frame requests, and safety element approval requests with the methods set out in § 413.7(a). Under current § 404.3(c), a person filing a request for a waiver may submit the request by paper copy or email. Likewise, under current § 404.15(b), a person filing a request proposing an alternative time frame for certain 14 CFR chapter III requirements may submit the request by paper or email. Finally, under current § 414.13(a), a person filing a safety element approval request separate from an application for a license must submit the request by paper copy, email, or physical electronic storage. The proposed rule would amend those sections to allow for submission of waiver, alternative timeframe, and safety element approval requests in the same manner as license applications: email, physical electronic storage, or other electronic method approved by the Administrator. FAA anticipates that, in addition to efficiencies gained by allowing electronic submissions via LEAP and other methods approved by the Administrator, the standardization of submission procedures across license and permit applications, safety element approval applications, requests for alternative time frames, and petitions for waivers would ease the burden on applicants by streamlining acceptable procedures for each different application or petition.

FAA emphasizes that the proposed change would not make any specific electronic submission of applications mandatory. Thus, applicants who wish to submit their applications via email or physical electronic storage would be able to continue doing so under this proposed rule.

That being said, FAA is also considering whether to remove the option for email and physical electronic storage submissions altogether. Under this alternative, § 413.7 would be amended to require all license and permit applications to be submitted via an electronic method approved by the Administrator. Likewise, all waiver requests, alternative time frame requests, and safety element approval requests would also need to be submitted via an electronic method approved by the Administrator. FAA is considering this alternative because mandating standardized electronic methods would ensure a consistent submission experience for all applicants, enabling FAA to automate internal processes and further improve efficiency. FAA seeks public comment on all aspects of this alternative—including potential operational impacts, costs, or benefits—and whether it should be incorporated into the final rule.

Finally, FAA proposes to make conforming changes to §§ 401.1, 404.3(c)(2), and 413.7(a) to update the address of the Office of Commercial Space Transportation to 1200 New Jersey Avenue SE, Washington, DC 20590.

V. Regulatory Notices and Analyses

A. Regulatory Impact Analysis

E.O. 12866 (“Regulatory Planning and Review”) and E.O. 13563 (“Improving Regulation and Regulatory Review”) require agencies to regulate in the “most cost-effective manner,” to make a “reasoned determination that the benefits of the intended regulation justify its costs,” and to develop regulations that “impose the least burden on society.” The Office of Management and Budget has determined this proposed rule is not a significant regulatory action as defined in Section 3(f) of E.O. 12866. FAA is seeking comments on the following analysis.

Currently, FAA allows license and permit applications, waiver requests, safety element approval requests, and requests for alternative time frames to be submitted by paper, by use of physical electronic storage, or by email. This proposed rule would remove the option to submit by paper and would provide another option: submission of license and permit applications, waiver requests, safety element approval requests, and requests for alternative time frames via another electronic ( printed page 63182) method approved by the FAA Administrator. FAA is currently in the process of creating an online platform, LEAP, through which individuals would be able to submit materials to the Office of Commercial Space Transportation. The proposed rule is necessary to allow materials to be submitted via LEAP. The proposed rule does not require FAA development of LEAP, which FAA would develop with or without this rule. Therefore, FAA considers the development cost of the LEAP platform as part of the baseline for this analysis, or, as OMB Circular A-4 explains, what the world would be like if the rule is not adopted.

Most license applications are received via email attachments, which would be time-consuming for FAA to upload manually to an electronic storage location. By providing submittal through another electronic method allowed by this proposed rule would save FAA an estimated 10 minutes per attachment in an email. The average number of files submitted in support of a part 450 application per month is approximately 150. An administrative specialist under the FAA Core Compensation Plan does this labor. The specialist is at a H band ^[1] with a base hourly rate of $41.41. FAA uses a factor of 1.3625 for benefits,^[2] which results in the total loaded hourly wage of $56.42. The undiscounted cost savings per year ^[3] is $16,927 and over the 10-year period of analysis is $169,266. At a seven percent discount rate, the cost savings totals $118,885 and at a three percent rate it is $144,387. The cost savings estimate is shown in Table 1.

In addition, if the proposed rule is not finalized, FAA would continue to use LEAP or other follow-on electronic methods to process applications, but the applicant would need to obtain a waiver to use LEAP or any new electronic system to transmit their application. Therefore, the cost savings would come from the applicant not having to petition FAA for a waiver to use a system like LEAP to submit an application. Since no such waivers have been submitted, FAA cannot estimate the cost savings.

Furthermore, though no licensed operator has submitted a paper application to FAA during the last two decades and FAA does not expect any in the future, removing the option to submit by paper may result in minimal cost savings because submitting applications by paper is more costly for FAA to review than submittal by email, physical electronic storage, or other electronic means.

Therefore, this proposed rule would provide cost savings to industry and FAA by streamlining the application, waiver request, and safety element approval request processes.

B. Regulatory Flexibility Act

Under the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), agencies must prepare and make available for public comment a regulatory flexibility analysis that describes the effect of the rulemaking on small entities ( i.e., small businesses, small organizations, and small government jurisdictions). No regulatory flexibility analysis is required, however, if the head of an agency certifies that the proposed rule would not have a significant economic impact on a substantial number of small entities. FAA has concluded and hereby certifies that this proposed rule would not have a significant economic impact on a substantial number of small entities; therefore, an analysis is not included.

C. International Trade Impact Assessment

The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal agencies from establishing standards or engaging in related activities that create unnecessary obstacles to the foreign commerce of the United States. Pursuant to these Acts, the establishment of standards is not considered an unnecessary obstacle to the foreign commerce of the United States, so long as the standard has a legitimate domestic objective, such as the protection of safety, and does not operate in a manner that excludes imports that meet this objective. The statute also requires consideration of international standards and, where appropriate, they be the basis for U.S. standards.

FAA has assessed the potential effect of this proposed rule and determined that it would not create unnecessary obstacles to the foreign commerce of the United States.

D. Unfunded Mandates Assessment

The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) governs the issuance of Federal regulations that require unfunded mandates. An unfunded mandate is a regulation that requires a State, local, or Tribal government or the private sector to incur direct costs without the Federal Government having first provided the ( printed page 63183) funds to pay those costs. FAA determined the proposed rule would not result in the expenditure of $193,000,000 or more ($100,000,000 adjusted for inflation using the most current Implicit Price Deflator for the Gross Domestic Product) by State, local, or Tribal governments, in the aggregate, or the private sector, in any one year.

E. Paperwork Reduction Act

The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires FAA consider the impact of paperwork and other information collection burdens imposed on the public. FAA has determined there would be no new requirement for information collection associated with this proposed rule.

F. International Compatibility

In keeping with U.S. obligations under the Convention on International Civil Aviation, it is FAA policy to conform to International Civil Aviation Organization (ICAO) Standards and Recommended Practices to the maximum extent practicable. FAA has determined there are no ICAO Standards and Recommended Practices that correspond to these proposed regulations.

G. Environmental Analysis

The Department has analyzed the environmental impacts of this notice of proposed rulemaking pursuant to the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321, et seq.). FAA has determined this proposed rule is categorically excluded pursuant to FAA Order 1050.1G. Categorical exclusions are categories of actions FAA has determined normally do not significantly affect the quality of the human environment and therefore do not require either an environmental assessment (EA) or environmental impact statement (EIS). In analyzing the applicability of a categorical exclusion, FAA must also consider whether extraordinary circumstances are present that would warrant the preparation of an EA or EIS. This rulemaking, which would allow for submission of license and permit applications and requests for waivers, alternative time frames, and safety element approvals through additional electronic methods, is categorically excluded pursuant to FAA Order 1050.1G, Appendix B, Paragraph B-2.6(f), which categorically excludes issuance of regulatory documents. FAA does not anticipate any environmental impacts, and there are no extraordinary circumstances present in connection with this rulemaking.

VI. E.O. Determinations

A. E.O. 13132, Federalism

FAA has analyzed this proposed rule under the principles and criteria of E.O. 13132, Federalism. FAA has determined this action would not have a substantial direct effect on the States, or the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government, and, therefore, would not have federalism implications.

B. E.O. 13175, Consultation and Coordination With Indian Tribal Governments

Consistent with E.O. 13175, Consultation and Coordination with Indian Tribal Governments,^[4] and FAA Order 1210.20, American Indian and Alaska Native Tribal Consultation Policy and Procedures,^[5] FAA ensures Federally Recognized Tribes (Tribes) are given the opportunity to provide meaningful and timely input regarding proposed Federal actions that have the potential to affect uniquely or significantly their respective Tribes. At this point, FAA has not identified any unique or significant effects, environmental or otherwise, on Tribes resulting from this proposed rule.

C. E.O. 13211, Regulations That Significantly Affect Energy Supply, Distribution, or Use

FAA analyzed this proposed rule under E.O. 13211, Actions Concerning Regulations that Significantly Affect Energy Supply, Distribution, or Use (May 18, 2001). FAA has determined it would not be a “significant energy action” under the E.O. and would not be likely to have a significant adverse effect on the supply, distribution, or use of energy.

D. E.O. 13609, Promoting International Regulatory Cooperation

E.O. 13609, Promoting International Regulatory Cooperation, promotes international regulatory cooperation to (1) meet shared challenges involving health, safety, labor, security, environmental, and other issues and to reduce, eliminate, or (2) prevent unnecessary differences in regulatory requirements. FAA has analyzed this action under the policies and agency responsibilities of E.O. 13609 and has determined this action would have no effect on international regulatory cooperation.

E. E.O. 14192, Unleashing Prosperity Through Deregulation

This proposed rule, if finalized as proposed, is expected to be an E.O. 14192 deregulatory action.

VII. Additional Information

A. Comments Invited

FAA invites interested persons to participate in this rulemaking by submitting written comments, data, or views. FAA also invites comments relating to the economic, environmental, or federalism impacts that might result from adopting the proposals in this document. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should submit only one time if comments are filed electronically, or commenters should send only one copy of written comments if comments are filed in writing.

FAA will file in the docket all comments it receives, as well as a report summarizing each substantive public contact with FAA personnel concerning this proposed rule. Before acting on this proposal, FAA will consider all comments it receives on or before the closing date for comments. FAA will consider comments filed after the comment period has closed if it is possible to do so without incurring expense or delay. FAA may change this proposal in light of the comments it receives.

B. Confidential Business Information

Confidential Business Information (CBI) is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public disclosure. If your comments responsive to this NPRM contain commercial or financial information that is customarily treated as private, that you actually treat as private, and is relevant or responsive to this NPRM, it is important you clearly designate the submitted comments as CBI. Please mark each page of your submission containing CBI as “PROPIN.” FAA will treat such marked submissions as confidential under the FOIA, and they will not be placed in the public docket of this NPRM. Submissions containing CBI should be sent to the person in the FOR FURTHER INFORMATION CONTACT section of this document. Any commentary FAA receives that is not specifically ( printed page 63184) designated as CBI will be placed in the public docket for this rulemaking.

C. Electronic Access and Filing

A copy of this NPRM, all comments received, any final rule, and all background material may be viewed online at www.regulations.gov using the docket number listed above. Electronic retrieval help and guidelines are available on the website. It is available 24 hours each day, 365 days each year. An electronic copy of this document may also be downloaded from the Office of the Federal Register's website at www.federalregister.gov and the Government Publishing Office's website at www.govinfo.gov. A copy may also be found at FAA's Regulations and Policies website at www.faa.gov/​regulations_​policies.

Copies may also be obtained by sending a request to the Federal Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence Avenue SW, Washington, DC 20591, or by calling (202) 267-9677. Requesters must identify the docket or notice number of this rulemaking.

All documents FAA considered in developing this proposed rule, including economic analyses and technical reports, may be accessed in the electronic docket for this rulemaking.

D. Small Business Regulatory Enforcement Fairness Act

The Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 857, Mar. 29, 1996) requires FAA to comply with small entity requests for information or advice about compliance with statutes and regulations within its jurisdiction. A small entity with questions regarding this document may contact its local FAA official or the person listed under the FOR FURTHER INFORMATION CONTACT heading at the beginning of the preamble. To find out more about SBREFA on the internet, visit www.faa.gov/​regulations_​policies/​rulemaking/​sbre_​act/​.

The Proposed Amendments

For the reasons discussed in the preamble, the Federal Aviation Administration proposes to amend chapter III of title 14, Code of Federal Regulations, as follows:

1. The authority citation for part 401 is revised to read as follows:

Authority: 51 U.S.C. Chapter 509.

2. Revise § 401.1 to read as follows:

3. The authority citation for part 404 is revised to read as follows:

Authority: 51 U.S.C. Chapter 509.

4. Revise § 404.3 to read as follows:

5. Revise § 404.15(b) to read as follows:

6. The authority citation for part 413 is revised to read as follows:

Authority: 51 U.S.C. Chapter 509.

( printed page 63185)

7. Amend § 413.7(a) by:

a. Revising the introductory text in paragraph (a);

b. Removing paragraph (a)(1);

c. Redesignating paragraph (a)(2) and (a)(3) as paragraphs (a)(1) and (a)(2), respectively;

d. Revising the introductory text to redesignated paragraph (a)(1); and

e. Adding paragraph (a)(3).

The revisions and addition read as follows:

8. The authority citation for part 414 is revised to read as follows:

Authority: 51 U.S.C. Chapter 509.

9. Revise § 414.13(a) to read as follows:

91 FR 63180