Office of Space Commerce Proposes New Certification for Novel Space Activities

The U.S. Department of Commerce's Office of Space Commerce (OSC) on March 24, 2026, released a proposal to establish a new Space Commerce Certification (SCC) process for novel commercial space activities in response to Executive Order (EO) 14355, "Enabling Competition in the Commercial Space Industry." The proposed SCC would create a voluntary, opt-in certification framework administered by OSC and designed to provide a consolidated interagency review pathway for space activities not clearly governed by existing regulatory frameworks such as in-space manufacturing, satellite servicing, orbital computing, lunar operations and commercial inhabitable stations.

The certification process features a presumption of approval, with decisions generally required within 120 days of a completed application, and is intended to reduce duplicative regulatory requirements across the Federal Aviation Administration (FAA), Federal Communications Commission (FCC) and OSC's Commercial Remote Sensing Regulatory Affairs (CRSRA) division.

Significant questions remain about the proposal's implementation, and OSC is seeking input from stakeholders.

Background: Regulatory Uncertainty for Novel Space Activities

At present, the FAA licenses launch and reentry operations, the FCC licenses radiofrequency communications and imposes orbital debris rules, and CRSRA licenses private remote sensing systems. However, certain commercial space operations do not clearly fit within the existing regimes, leaving open the question of how (if at all) these activities will be authorized and regulated. These include activities such as satellite servicing, in-space servicing, assembly and manufacturing (ISAM), orbital data centers, lunar surface missions, space resource utilization, space-based solar power and commercial habitable stations.

Efforts to close this gap have been underway for more than a decade. The U.S. Congress directed the Office of Science and Technology Policy to assess the issue as early as 2015, and subsequent legislative proposals attempted to assign mission authorization responsibilities to one or more agencies, but none was enacted. In August 2025, EO 14355 directed the Commerce Secretary to propose a process for individualized mission authorizations within 150 days.

The Proposed SCC

OSC's March 2026 proposal is not a formal rulemaking. Rather, OSC characterizes it as a framework that can be implemented under existing statutory authority, specifically 51 U.S.C. § 50702, which charges OSC with fostering conditions for economic growth in the U.S. space commerce industry and seeking the removal of impediments to space commerce. The key elements of the proposed SCC are as follows:

• Eligibility. The certification would be available to any U.S. entity conducting novel space activities not clearly or straightforwardly governed by existing regulatory frameworks. Activities already covered under existing frameworks and thus not eligible for the certification include communications satellites regulated by the FCC and remote sensing satellites regulated by CRSRA. The proposal explicitly states that "where an activity is subject to an existing licensing or authorization requirement, such requirement remains applicable and controlling, and participation in Space Commerce Certification would not relieve an operator of the obligation to obtain and comply with such obligations." OSC identifies several categories of novel activities that may be eligible, including rendezvous and proximity operations, in-space computing, lunar surface and orbit operations, and space resource utilization.
• Application Requirements. Applicants would submit a per-mission application providing basic information, including proof of U.S. entity status, launch details, a description of the space object and proposed operations, attestations regarding compliance with certification requirements and the non-weaponized nature of the space object, and markings identifying trade secret or export-controlled information. Missions involving multiple space objects may be covered by a single certification request, even if multiple launches are involved. No fees are proposed for the certification process.
• Interagency Review Process. Upon receipt of a complete application, OSC would circulate it to relevant interagency participants. These include the Secretaries of the U.S. Departments of War and State, Administrators of FAA and NASA, and FCC Chair. The relevant agencies will then review for concerns relating to national security, international obligations, foreign policy and safety of operations. Reviewing agencies would have 30 days to complete their review, with the option to request up to two 30-day extensions. Any objections must be submitted in writing, specific to the proposed activity and grounded in an enumerated basis for denial, with mitigation options if possible.
• Timeline and Presumption of Approval. Certification must be granted, granted with conditions or denied within 120 days of a completed application submission, unless the timeline is extended to a maximum of 180 days to resolve interagency disagreements. The process operates under a presumption of approval: The Commerce Secretary must certify the application within the specified timeline unless a valid basis for denial exists.
• Basis for Denial. The Commerce Secretary may deny certification only on the following grounds: 1) the applicant is unlikely to or incapable of complying with certification commitments, 2) the mission would likely harm national security interests, 3) the mission would likely cause the U.S. to violate international obligations or harm foreign relations, or 4) the mission would likely pose unacceptable dangers to the safety of space operations, assets or public safety.

Ongoing Supervision and Enforcement

The proposal adopts a risk-informed approach to continuing supervision of certified operators. In general, OSC would rely on "light-touch" mechanisms such as periodic attestations and limited reporting. More active oversight would be triggered by material changes to the certified activity, credible indications of noncompliance, or the emergence of national security, foreign policy or public safety concerns. Failure to correct noncompliance could result in formal findings or revocation of the certification, which could in turn trigger enforcement actions by associated regulators.

Certified operators must also provide timely notice of any material changes affecting the scope of commitments underlying their certification, including changes to mission design, operational concept, ownership or control, or safety-critical systems. OSC may address such changes through amendments or recertification, depending on the significance of the change.

Interaction with Existing Regulatory Agencies

The SCC would not replace the statutory licensing authorities of the FAA, FCC or CRSRA. Rather, OSC envisions that each of these agencies could choose to incorporate SCC into their own processes. Specifically, the proposal suggests that the FCC could waive its orbital debris mitigation rules for SCC holders and instead condition its licenses on the operator obtaining, maintaining and complying with an OSC certification. The FAA could accept the OSC certification as satisfying portions or all of its payload review requirements, particularly the interagency review component addressing national security and international obligations. CRSRA could accept the certification as satisfying satellite disposal and interagency review requirements for its Tier 3 licensees.

However, the proposal leaves the precise mechanisms for agency acceptance largely unaddressed. It is unclear how or if each regulator would adopt the SCC as a substitute for its own requirements. Notably, the FCC has been pursuing its own parallel space modernization initiatives, including a recently circulated draft Notice of Proposed Rulemaking, Spectrum Abundance for Weird Space Stuff, that proposes new spectrum pathways for "emergent space operations" such as ISAM, orbital manufacturing and lunar surface operations. Would an operator of a novel space system using spectrum be required to obtain both an SCC and FCC license? The answer has not yet been made clear.

Conclusion

OSC's proposed SCC is the latest development in the ongoing effort to clarify, streamline and speed up the regulatory process for novel commercial space activities. The proposal aims to offer a defined pathway for companies pursuing novel space missions. That said, much depends on details that remain to be worked out. These include the substantive requirements for certification and whether other agencies will opt in to the certification in the way the proposal contemplates. Companies engaged in or planning novel space activities should monitor the development of this proposal and consider submitting feedback to OSC as the proposal invites.

For questions about the impact of this proposal or how to submit feedback to OSC, please contact the authors of this alert.

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