SpaceX Pushes Back Civil Penalties Proposed by FAA

On September 17, 2024, the Federal Aviation Administration (FAA) announced a proposal for $633,009 in civil penalties against SpaceX for alleged violations during two launches in 2023. According to the FAA, these infractions occurred because the company did not comply with the safety requirements tied to its launch licenses.

Today, on September 18, SpaceX issued a letter to key members of Congress, who are part of the House and Senate Committees on Science, Space, and Transportation, contesting the FAA’s claims and expressed frustration with the agency’s regulatory oversight.

The alleged violations

The FAA’s proposed fines are connected to two separate launches carried out by SpaceX in mid-2023. Each incident focuses on SpaceX’s alleged failure to comply with the conditions laid out in its commercial space launch licenses.

The first incident occurred during the PSN SATRIA mission on June 18, 2023, which was launched from Cape Canaveral Space Force Station. SpaceX had previously submitted a request in May 2023 to revise its communications plan related to this mission.

The proposed revisions included adding a new launch control room at Hangar X and eliminating a required readiness poll to be conducted two hours before launch (the “T-2 hour poll”). Despite the request, the FAA had not yet approved the changes by the time of the launch. SpaceX went ahead with the mission using the unapproved launch control room and without conducting the T-2 hour poll. The FAA has proposed a $350,000 fine for these actions—$175,000 for each alleged violation.

The second incident took place on July 28, 2023, during the EchoStar XXIV/Jupiter 3 mission. SpaceX had submitted a request earlier in July to revise its explosive site plan at the Kennedy Space Center, reflecting the addition of a newly constructed rocket propellant farm. The FAA claims that SpaceX used this unapproved propellant farm for the EchoStar mission, and it has proposed a $283,009 penalty for this violation.

In announcing the fines, FAA Chief Counsel Marc Nichols highlighted the FAA’s responsibility for ensuring public safety. “Safety drives everything we do at the FAA, including a legal responsibility for the safety oversight of companies with commercial space transportation licenses,” Nichols said. “Failure of a company to comply with the safety requirements will result in consequences.”

SpaceX was given 30 days to respond to the FAA’s enforcement letters.

SpaceX’s response

As stated in the opening of this article, SpaceX issued a detailed letter today, addressed to Chairs and Ranking Members of key Congressional Committees overseeing space and transportation matters.

Signed by SpaceX’s Vice President of Legal, David Harris, the letter pushed back against the FAA’s allegations, while also criticizing the agency’s handling of regulatory oversight for the commercial space sector.

SpaceX’s letter began by pointing out the broader concerns it has raised over the FAA’s Office of Commercial Space Transportation (AST), the office responsible for licensing and overseeing commercial space launches. SpaceX claimed that for nearly two years, it has highlighted issues with the AST’s ability to efficiently process licensing materials.

The letter stated that the AST “lacks the resources to timely review licensing materials” and has “mistakenly” focused its attention on areas unrelated to public safety. It also questioned why FAA’s Chief Counsel, a politically appointed figure, was quoted in the agency’s enforcement announcement, suggesting that this is unusual and potentially indicative of political motivations.

Regarding the specific allegations, SpaceX defended its actions on each point.

• Communications Plan for PSN SATRIA Launch:
  SpaceX denied the FAA’s claim about operating under an unapproved plan, stating that only the location of the control room changed, not the procedures or personnel.
  
  The company submitted its updated plan on May 2, 2023, but despite repeated requests for feedback, the FAA did not complete its review before the June 18 launch. SpaceX argued that this location update was a “continuing accuracy update,” not requiring prior approval. The FAA eventually approved the plan on June 22, four days after the launch, indicating no public safety risk.

• T-2 Hour Readiness Poll:
  The company disputed the FAA’s allegation regarding the removal of the T-2 hour poll before the PSN SATRIA mission, asserting that no regulation mandates such a poll. Instead, SpaceX conducts a readiness poll before propellant loading, ensuring safety in line with requirements.

• RP-1 Propellant Farm for EchoStar XXIV/Jupiter 3 Launch:
  Regarding the RP-1 farm, SpaceX emphasized that the new location increased public safety by moving it farther from public areas and spacing storage tanks to reduce hazards.
  
  Additionally, Federal Range Safety authorities approved the farm for use, and the FAA later granted a waiver for the Crew-7 launch, which used the same farm. The company criticized the FAA for penalizing its use in the EchoStar mission despite this prior approval.

Broader regulatory criticism and a delayed starship launch

SpaceX’s letter also highlighted what it views as systemic issues within the FAA’s Office of Commercial Space Transportation. The company stated that the FAA has failed to keep pace with the rapid development of the commercial space industry and has struggled to modernize and streamline its regulations. This inefficiency in processing minor updates to licenses has created unnecessary obstacles for the company, they say, even when public safety is not at risk.

“It has been clear for some time that AST lacks the resources to timely review licensing materials, mistakenly focuses its limited resources on areas unrelated to its public safety regulatory scope and has been unsuccessful in modernizing and streamlining its regulations.”

— David Harris, SpaceX’s Vice President of Legal

In its closing remarks, SpaceX reaffirmed its commitment to safety and stressed that it had followed all necessary protocols to ensure safe operations during the 2023 launches in question. The company maintained that the FAA’s actions were motivated more by bureaucratic inefficiency than by legitimate safety concerns.

This back-and-forth between the FAA and SpaceX comes at a time when the FAA has delayed the next Starship flight until no earlier than November 2024. This delay, coupled with the recent penalties, adds to the mounting tensions between the FAA and the most valued commercial space company. SpaceX addressed this delay in an update, where it reiterated its frustration with the FAA’s regulatory process. We analyzed it and you can find our article here.