Commercial Space Orbital Debris Liability Act

Presented By Ethan Miller

This Movement Is Currently
In The Fundraising Stage.

THE ORBITAL LIABILITY GAP

Commercial space activities are growing exponentially, yet liability frameworks for orbital debris damage remain dangerously underdeveloped:

• Commercial satellites projected to increase from 6,000 to 58,000 by 2030
• Collision risk growing exponentially with object population
• Single collision potentially generating thousands of debris fragments
• Existing liability frameworks focus on launch/reentry rather than orbital activities
• Insurance markets underdeveloped for in-orbit liability
• Catastrophic collision costs potentially reaching billions of dollars
• International liability frameworks inadequate for commercial activities
• Limited financial responsibility requirements for small satellite operators
• Remediation costs unassigned for abandoned spacecraft
• Liability chain unclear for complex multi-party constellations

As orbital activities accelerate, the absence of clear liability frameworks creates moral hazard, underinvestment in debris prevention, and potential taxpayer exposure for catastrophic events.

OUR COMPREHENSIVE LIABILITY FRAMEWORK

Our proposed legislation would establish:

1. TIERED FINANCIAL RESPONSIBILITY REQUIREMENTS

• Mandatory liability insurance based on satellite size and orbital regime
• Minimum coverage requirements proportional to collision risk
• Third-party liability standards for operational spacecraft
• Extended coverage periods addressing post-mission phases
• Financial security alternatives for smaller operators
• Catastrophic risk pools for high-consequence events
• Self-insurance options for large constellation operators
• Parent company guarantees ensuring responsibility
• Coverage verification before license approval
• Regular assessment of coverage adequacy

2. ORBITAL DEBRIS REMEDIATION FUND

• Industry-funded pool supporting debris remediation
• Contributions proportional to constellation size and orbit
• Dedicated funding for high-risk debris removal
• Orphaned object remediation capability
• Research funding advancing remediation technologies
• Performance-based distribution ensuring effectiveness
• Independent governance ensuring appropriate allocation
• Regular assessment of fund adequacy
• Transparent reporting on fund activities
• International coordination leveraging resources

3. LIABILITY DETERMINATION STANDARDS

• Clear fault determination frameworks for collisions
• Evidence standards for liability assessment
• Neutral evaluation mechanisms for complex incidents
• Interim compensation processes during investigations
• Joint and several liability standards for constellation operators
• Liability chain clarification for multi-party missions
• Limitations of liability for compliant operators
• Punitive damages for reckless operations
• Statutory damages for untrackable debris generation
• Formal investigation procedures for significant events

4. REGULATORY IMPLEMENTATION & ADMINISTRATION

• Streamlined compliance for standard mission profiles
• Consolidated federal oversight reducing fragmentation
• Regular assessment of framework effectiveness
• International coordination promoting harmonization
• Technical standards development supporting compliance
• Simplified procedures for smaller operators
• Reporting requirements ensuring transparency
• Enforcement mechanisms ensuring compliance
• Regular stakeholder engagement improving implementation
• Continuous improvement based on industry evolution

5. INTERNATIONAL COORDINATION & HARMONIZATION

• Model national legislation promoting global consistency
• Bilateral agreements with major spacefaring nations
• Multilateral initiatives through existing frameworks
• Cross-recognition of compliant insurance arrangements
• Information sharing on liability determination
• Joint investigation protocols for international incidents
• Registration standards improving attribution capability
• Diplomatic initiatives advancing international frameworks
• Regular international forums addressing emerging issues
• Technical assistance for developing spacefaring nations

IMPLEMENTATION STRATEGY

The legislation would build upon existing regulatory frameworks within the Federal Aviation Administration’s Office of Commercial Space Transportation with phased implementation:

• Initial focus on new license applications
• Graduated requirements based on operator size and risk
• Reasonable transition periods for existing licensees
• Regular assessment of market capacity and coverage availability
• Industry working groups addressing implementation challenges
• International outreach promoting consistent approaches
• Annual reporting to Congress on implementation progress
• Continuous improvement based on operational experience
• Regular stakeholder engagement throughout implementation
• Incremental adjustment as technology and markets evolve

Our coalition includes commercial space companies, insurance providers, legal experts, space sustainability advocates, and security specialists committed to creating a responsible framework for the rapidly expanding commercial space sector.

Your support will help establish the liability frameworks needed as commercial space activities expand—creating appropriate financial responsibility requirements, clear liability standards, and remediation funding mechanisms that protect the orbital environment, the industry’s future, and taxpayer interests.