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The Emerging Commercial Suborbital Reusable Launch Vehicle Market

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The Emerging Commercial Suborbital Reusable Launch Vehicle Market THE EMERGING COMMERCIAL SUBORBITAL REUSABLE LAUNCH VEHICLE MARKET HEARING BEFORE THE SUBCOMMITTEE ON SPACE AND AERONAUTICS COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS SECOND SESSION WEDNESDAY, AUGUST 1, 2012 Serial No. 112–101 Printed for the use of the Committee on Science, Space, and Technology ( Available via the World Wide Web: http://science.house.gov U.S. GOVERNMENT PRINTING OFFICE 75–397PDF WASHINGTON : 2012 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HON. RALPH M. HALL, Texas, Chair F. JAMES SENSENBRENNER, JR., EDDIE BERNICE JOHNSON, Texas Wisconsin JERRY F. COSTELLO, Illinois LAMAR S. SMITH, Texas LYNN C. WOOLSEY, California DANA ROHRABACHER, California ZOE LOFGREN, California ROSCOE G. BARTLETT, Maryland BRAD MILLER, North Carolina FRANK D. LUCAS, Oklahoma DANIEL LIPINSKI, Illinois JUDY BIGGERT, Illinois DONNA F. EDWARDS, Maryland W. TODD AKIN, Missouri BEN R. LUJA´ N, New Mexico RANDY NEUGEBAUER, Texas PAUL D. TONKO, New York MICHAEL T. MCCAUL, Texas JERRY MCNERNEY, California PAUL C. BROUN, Georgia TERRI A. SEWELL, Alabama SANDY ADAMS, Florida FREDERICA S. WILSON, Florida BENJAMIN QUAYLE, Arizona HANSEN CLARKE, Michigan CHARLES J. ‘‘CHUCK’’ FLEISCHMANN, SUZANNE BONAMICI, Oregon Tennessee VACANCY E. SCOTT RIGELL, Virginia VACANCY STEVEN M. PALAZZO, Mississippi VACANCY MO BROOKS, Alabama ANDY HARRIS, Maryland RANDY HULTGREN, Illinois CHIP CRAVAACK, Minnesota LARRY BUCSHON, Indiana DAN BENISHEK, Michigan VACANCY SUBCOMMITTEE ON SPACE AND AERONAUTICS HON. STEVEN M. PALAZZO, Mississippi, Chair F. JAMES SENSENBRENNER JR., JERRY F. COSTELLO, Illinois Wisconsin TERRI A. SEWELL, Alabama LAMAR S. SMITH, Texas DONNA F. EDWARDS, Maryland DANA ROHRABACHER, California FREDERICA S. WILSON, Florida FRANK D. LUCAS, Oklahoma HANSEN CLARKE, Michigan W. TODD AKIN, Missouri MICHAEL T. MCCAUL, Texas SANDY ADAMS, Florida EDDIE BERNICE JOHNSON, Texas E. SCOTT RIGELL, Virginia MO BROOKS, Alabama RALPH M. HALL, Texas (II) C O N T E N T S Wednesday, August 1, 2012 Page Witness List ............................................................................................................. 2 Hearing Charter ...................................................................................................... 3 Opening Statements Statement by Representative Steven M. Palazzo, Chair, Subcommittee on Space and Aeronautics, Committee on Science, Space, and Technology, U.S. House of Representatives .................................................................................... 10 Written Statement ............................................................................................ 11 Statement by Representative Donna F. Edwards, Ranking Minority Member, Subcommittee on Space and Aeronautics, Committee on Science, Space, and Technology, U.S. House of Representatives ............................................... 11 Written Statement ............................................................................................ 12 Witnesses: Ms. Carissa Christensen, Managing Partner, The Tauri Group Oral Statement ................................................................................................. 13 Written Statement ............................................................................................ 15 Dr. Alan Stern, Chairman, Suborbital Applications Researchers Group Oral Statement ................................................................................................. 29 Written Statement ............................................................................................ 31 Mr. George Whitesides, CEO and President, Virgin Galactic LLC Oral Statement ................................................................................................. 40 Written Statement ............................................................................................ 42 Mr. Bretton Alexander, Director, Business Development and Strategy, Blue Origin Oral Statement ................................................................................................. 47 Written Statement ............................................................................................ 49 Mr. Andrew Nelson, Chief Operating Officer, XCOR Aerospace Oral Statement ................................................................................................. 54 Written Statement ............................................................................................ 56 Dr. Stephan R. McCandliss, Research Professor, The Johns Hopkins Univer- sity Oral Statement ................................................................................................. 66 Written Statement ............................................................................................ 68 Appendix I: Answers to Post-Hearing Questions Ms. Carissa Christensen, Managing Partner, The Tauri Group ......................... 88 Dr. Alan Stern, Chairman, Suborbital Applications Researchers Group ............ 93 Mr. George Whitesides, CEO and President, Virgin Galactic LLC ..................... 96 Mr. Bretton Alexander, Director, Business Development and Strategy, Blue Origin .................................................................................................................... 99 Mr. Andrew Nelson, Chief Operating Officer, XCOR Aerospace ......................... 107 Dr. Stephan R. McCandliss, Research Professor, The Johns Hopkins Univer- sity ......................................................................................................................... 115 (III) THE EMERGING COMMERCIAL SUBORBITAL REUSABLE LAUNCH VEHICLE MARKET WEDNESDAY, AUGUST 1, 2012 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON SPACE AND AERONAUTICS, COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY, Washington, D.C. The Subcommittee met, pursuant to call, at 2:24 p.m., in Room 2318 of the Rayburn House Office Building, Hon. Steven Palazzo [Chairman of the Subcommittee] presiding. (1) 2 3 4 5 6 7 8 9 10 Chairman PALAZZO. The Subcommittee on Space and Aeronautics will come to order. Good afternoon and welcome to today’s hearing entitled, ‘‘The Emerging Commercial Suborbital Reusable Launch Vehicle Market.’’ In front of you are packets containing the written testimony, bi- ographies, and truth in testimony disclosure for today’s witness panel. I recognize myself for five minutes for an opening statement. I would like to thank our many witnesses for agreeing to testify before our Subcommittee. I know that considerable effort goes into your preparation, and I want to thank you for taking the time to appear today to share your knowledge with us. Today’s hearing will look at the emerging commercial suborbital reusable launch vehicle market. Suborbital vehicles can cross the thresholds of space and travel to the upper reaches of the atmos- phere, typically above 62 miles for brief periods of time but not orbit the earth. Our hearing will provide an opportunity to receive testimony from researchers, market analysts, and some of the com- panies that are vying to build the vehicles to compete in this emerging marketplace. We are going to learn about a newly-released ten-year forecast of market demand. Many in the research community are hopeful to exploit the unique microgravity environment of suborbital flight with economical, routine access that enables expanded human re- search, atmospheric research and microgravity biological and phys- ical research. Space tourism proponents are optimistic that a safe operational system will be developed to support their business ambitions, yet there are significant technical, financial, and regulatory challenges to be overcome before these hopes can be realized. Companies can perform test flights with an experimental permit from the FAA but cannot sell their services and become full-fledged commercial enti- ties without first obtaining an FAA launch and reentry license. In addition, current law prohibits the FAA from issuing regula- tions on human spaceflight until October, 2015. Until then the FAA will engage with the industry participants who can share their views on how to improve safety without proposing burdensome reg- ulations. I encourage industry to work closely with the FAA so that they will be able to draft effective regulations in 2015, and diminish the chance that these regulations will stifle the industry. I look forward to hearing from our experts about their plans to develop a profitable and sustainable business. It is my hope they will be successful bringing these new markets into the mainstream, recognizing that the commercial suborbital launch vehicle business faces significant technical challenges as new designs are intro- duced. I am optimistic they will perform safely and profitably while reducing costs and increasing the quality of suborbital research. We have a lot of ground to cover today. I want to thank our wit- nesses again. I look forward to today’s discussion. [The prepared statement of Mr. Palazzo follows:] 11 PREPARED STATEMENT OF SUBCOMMITTEE CHAIRMAN STEVEN M. PALAZZO Good afternoon and welcome to today’s hearing. I would like to thank our many witnesses for agreeing to testify before our Subcommittee. I know that considerable effort goes into your preparation, and I want to thank you for taking the time to appear today
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