Cleared for Launch: FAA Proposes Sweeping Environmental Waivers for Commercial Space

The Federal Aviation Administration (FAA) published a notice of proposed rulemaking on July 30, 2026, that would significantly reduce regulatory burdens for applicants that apply for commercial space licenses or permits. The proposed rule would waive requirements under 13 statutes that currently apply to licenses and permits to operate a launch site, licenses to operate a reentry site, experimental permits and licenses to operate a launch or reentry vehicle.

The 13 statutes that the proposed rule identifies as eligible for a waiver largely contain environmental requirements or standards. In particular, the potential waivers would be available for:

1. National Environmental Policy Act (NEPA)
2. U.S. Department of Transportation (DOT) Act (49 U.S.C. § 303(f))
3. Endangered Species Act
4. Clean Water Act
5. Coastal Zone Management Act
6. Clean Air Act
7. National Historic Preservation Act
8. Marine Mammal Protection Act
9. Magnuson-Stevens Fishery Conservation and Management Act
10. Wild and Scenic Rivers Act
11. Noise Control Act of 1972
12. Rivers and Harbors Act
13. National Marine Sanctuaries Act

The FAA explains in the proposed rule that it seeks to streamline the process for obtaining licenses and permits by reducing regulatory burdens for the commercial space industry in accordance with President Donald Trump's explicit direction in Executive Order (EO) 14335, "Enabling Competition in the Commercial Space Industry."¹ A previous Holland & Knight alert describing the EO notes its focus on streamlining approval processes for commercial space licenses and permits, with the goal of increasing commercial space launch cadence and novel space activities by 2030.

Policy Considerations

The proposed rule states the U.S. must facilitate efficient launches, reentries and missions to space to achieve goals of enhancing economic growth in the U.S., as well as furthering national security and accomplishing other federal space objectives. Consistent with the EO, the proposed rule focuses heavily on waiving certain procedural requirements that apply under NEPA. Quoting Seven County Infrastructure Coal v. Eagle County, 605 U.S. 168, 183 (2025), the proposed rule states, "just as the Supreme Court recognized a need for a 'course correction' in the judicial review of NEPA, so too has DOT and FAA identified a need for course correction in application of NEPA and other related laws to the commercial space licensing and permitting process."²

The FAA's focus on ensuring that reviews or processes that NEPA would normally require will not present a barrier to the growth of the commercial space industry is not only a direct response to the EO but also serves as another indication of the Trump Administration's view of NEPA processes and requirements. As described in a recent Holland & Knight alert, the U.S. Nuclear Regulatory Commission (NRC) also recently published a proposed rule that would limit NEPA reviews to impacts within the NRC's authority, expand categorical exclusions from NEPA, authorize applicant-prepared environmental documents and codify review deadlines and page limits. Overall, such regulatory updates concerning NEPA processes establish the Trump Administration's clear goal of promoting growth in competitive industries. In this regard, such actions are consistent with President Trump's January 31, 2025, EO "Unleashing Prosperity Through Deregulation."

The short comment time frame of 30 days, as discussed below, further indicates that streamlining the requirements and processes that normally apply to commercial space licenses, permits and launch activities is a priority for FAA, especially as the cadence and demand for commercial space launches continues to increase. In the interest of remaining competitive and ensuring national security, stakeholders can likely expect a quick adoption of the proposed rule and a compressed time frame for implementation of the new provisions.

Legal Framework

Under 51 U.S.C. § 50905, the Secretary of Transportation has authority to waive the applicability of certain statutes that normally apply to commercial space licenses or permits. The proposed rule states that the Secretary's authority under 51 U.S.C. § 50905(b)(2)(C) generally authorizes waiver by regulation of requirements for a "license or permit." Based on this statement, the proposed rule includes a finding that licenses to operate a launch site and reentry site, experimental permits, and licenses to operate launch and reentry vehicles "fall squarely within the Secretary's jurisdiction to waive under section 50905(b)(2)(C)."³ Given this interpretation, the proposed rule includes the express conclusion of the Secretary that this authority extends to waive laws applicable to licenses to operate a launch site, licenses to operate a reentry site, experimental permits and licenses to operate launch and reentry vehicles.

To exercise its authority to waive statutory provisions under 51 U.S.C. § 50905(b)(2)(C), the FAA must consult with heads of appropriate executive agencies, including the Council on Environmental Quality, U.S. Environmental Protection Agency, U.S. Department of the Interior, U.S. Department of Commerce, U.S. Department of War, NASA and the Advisory Council on Historic Preservation, as applicable. Such consultation must address the Secretary's proposed determination that the requirements are not necessary to protect the public health and safety, safety of property, and national security and foreign policy interests of the United States. The proposed rule states the FAA will complete such consultation "during the pendency of this rulemaking." Stakeholders should anticipate, therefore, a discussion in the final rule that describes such consultation.

Request for Comments

The proposed rule sets a quick deadline for comment: Public comments must be submitted within 30 days from the date of publication in the Federal Register.

Regarding the substance of comments, the FAA seeks comments on a list of statutes that it might further waive in a rulemaking, as well as input in response to a listing of specific questions. The agency's request for comments on waiver of additional statutes is broad, as it states the agency "invites comment on other requirements not included that are not necessary," for example:

Ocean Dumping Act (33 U.S.C. 1401–1445; 40 CFR 220–229); Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) (42 U.S.C. § 9601 et seq.); Safe Drinking Water Act (42 U.S.C. 300f–300j-26; 40 CFR 141–143); Resource Conservation and Recovery Act (42 U.S.C. 6901–6992k; 40 CFR 239–282); Toxic Substances Control Act (15 U.S.C. 2601–2692; 40 CFR 700–799); Bald and Golden Eagle Protection Act (16 U.S.C. § 668 et seq.); Migratory Bird Treaty Act (16 U.S.C. § 703 et seq.) and National Wildlife Refuge System Administration Act (16 U.S.C. 668dd et seq.)

The listing of questions seeks input on applicability of the proposed rule and potential distinctions that might warrant different treatment regarding the waiver review or process. The proposed rule also includes several questions addressing how the proposed rule would accomplish certain objectives, such as:

• How have the 13 laws identified for waiver in this proposed rule applied, in the launch and reentry site and launch and reentry context to reduce a legally cognizable environmental harm? FAA encourages providing quantifiable, technical data to support a response.
• How would application of these waivers further Congress' purpose to "promote economic growth and entrepreneurial activity through use of the space environment"?

The FAA further seeks comment on fulfillment of certain legislative mandates included at 51 U.S.C. § 50905(b)(2) and (4), by asking:

• Would exempting launch and reentry sites or the development of such sites from these laws fulfill Congress's mandate to "simplify and expedit[e] the issuance and transfer of commercial licenses"? If so, how?
• Would exempting launch and reentry or launch and reentry site development from these laws fulfill Congress's mandate to "facilitate the strengthening and expansion of the United States space transportation infrastructure"? If so, how?

Given the 30-day comment time frame, stakeholders should monitor the public docket and prioritize providing input to the FAA.

Conclusion and Key Takeaways

The proposed rule reflects a broader push to keep the U.S. commercial space industry competitive by streamlining the licensing and permitting processes that govern launch and reentry activities. Stakeholders who seek to comment on the proposed rule should immediately begin reviewing the proposed rule and considering its potential effects.

For questions or assistance with input to the proposed rule, contact the author or another member of the Satellite and Space Technology Team.

Notes

¹ 90 Fed. Reg. 40219 (Aug. 13, 2025).

² Waiver of Specified Statutory Requirements for Commercial Space Launch and Reentry Actions, 91 Fed. Reg. 47,997, 47,998 (July 30, 2026).

³ Id. at n.7.

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