California proposes taxes on commercial space companies

We’re here to help you! The Franchise Tax Board of California has proposed new regulations that would allow the state to tax commercial launch companies.

You can read the full proposal here [pdf].

The rules are designed to apply to any company operating in California that generates at least half the money it takes in from “space transportation” — defined as the movement of people or property 62 miles above the surface of the Earth. That’s the internationally recognized line that separates our planet from the rest of space. It would apply to companies that use California as a launchpad, not California companies launching from other states, like Texas or Florida.

Essentially, they will tax any launch from Vandenberg, basing the tax on the distance the payload flies while still attached to the rocket and still the responsibility of the launch provider.

This is essentially a tax on SpaceX, since they are California’s only major launch company. This is also a tax on Vandenberg, the only spaceport in the state. The result? Expect future companies to flee California. Expect new spaceports to spring up elsewhere. As noted in the article:

At least one company has already been lured away from California for the promise of greater financial incentives — though of a more earthly variety. Moon Express, a company working to mine the moon for natural resources, moved from Mountain View to Florida. In an email, the company’s CEO and founder, Bob Richards, said the company “relocated from California to Florida in part due to the State of Florida’s progressive economic development incentives designed to attract commercial space companies

Maiden flight of China’s new 158-seat C919 passenger jet

China’s answer to Boeing and Airbus’s domination of the aviation business, a 158-seat passenger jet dubbed C919, is due to make its maiden flight later this week.

According to Xinhua, the first flight of the C919, assembled by state-owned Commercial Aircraft Corporation of China (Comac), will be conducted at the Shanghai International Airport on Friday, but could be delayed if weather conditions are not suitable. The timing for the first flight was set after the passenger jet passed a thorough assessment in April.

A successful maiden flight, followed by a series of safety certification processes, could open a floodgate for new orders for the single-aisle passenger jet, likely to generate 1 trillion yuan (HK$1.13 trillion) in business for Comac, according to Galaxy Securities. The C919 has received 570 orders and commitments from 23 customers, mainly Chinese state-owned carriers and leasing companies.

The plane is three years behind schedule. And while much of it is Chinese-made, a considerable percentage of major parts are produced by U.S. and European manufacturers.

NASA looks to private companies for lunar missions

Capitalism in space: NASA has issued a request for information on possible private commercial missions capable of carrying NASA payloads to the Moon.

From the announcement:

NASA has identified a variety of exploration, science, and technology demonstration objectives that could be addressed by sending instruments, experiments, or other payloads to the lunar surface. To address these objectives as cost-effectively as possible, NASA may procure payloads and related commercial payload delivery services to the Moon

In other words, NASA has money to spend on lunar science missions, and rather than plan those missions itself, as it has done since the 1960s, it is now offering to buy and launch proposals from private companies.

Iran announces launch plans for 2018

Iran’s Aerospace Research Instititue (ARI) has announced that it plans to launch its Nahid-2 communications satellite in 2018.

Interestingly, Iran’s first Nahid communications satellite, Nahid-1, has missed its announced March 2017 launch date. Worse, that satellite had been first scheduled for launch in 2012. Similarly, a remote sensing satellite that was supposed to have been launched in the early part of this year, Dousti, has also been delayed.

ISRO requests Indian proposals for Venus probe

India’s space agency ISRO has issued a request for proposals from Indian scientists for the scientific instruments to be installed on a future probe to Venus.

The announcement included the following information about the proposed Venus orbiter itself:

The payload capability of the proposed satellite is likely to be 175 kg with 500W of power. However these values are to be tuned based on the final configuration. The proposed orbit is expected to be around 500 x 60,000 km around Venus. This orbit is likely to be reduced gradually, over several months to a lower apoapsis.

All told it appears that India is moving forward with this project, and probably intends to build it much like they build Mangalyaan, their successful Mars orbiter, quickly, efficiently, and for relatively low cost.

Company that analyzes satellite data raises $50 million

Capitalism in space: Orbital Insight, a company that uses computers to analyze satellite imagery of the Earth, has raised $50 million in new investment capital.

The fresh capital will be used to expand its partnerships, increase its analytics products, and build bigger international sales operations in Europe and Asia, Orbital said. The Mountain View, California-based company founded by former NASA scientist and Google engineer James Crawford also will step up recruiting in engineering, data science and design.

Falling satellite launch costs are helping make geospatial imagery a bigger and better source for economists and investors tracking everything from China’s manufacturing to the number of cars parked outside Wal-Mart stores. Venture capital investment in space companies jumped to a record nearly $1.4 billion last year, bringing the total since 2000 to $13.3 billion, Goldman Sachs Group Inc. said in a report last month. [emphasis mine]

Nor are the lower launch costs hurting the launch industry. Instead, the industry is booming, as it now has a lot more customers available to buy their launch services.

Elton John – Rocket Man

An evening pause: Hat tip Sayomara. This pause is slightly different, and is really two-for-one. The background music is Elton John’s “Rocket Man,” but the visuals are of SpaceX’s future spaceport site at Boca Chica beach near Brownsville, Texas. Apparently someone used a drone to fly over the site and videotaped it. As Sayomara noted, this “shows how far away this site is from being usable.”

SpaceX successfully launches first surveillance satellite

Capitalism in space: SpaceX this morning successfully launched its first National Reconnaissance Office (NRO) surveillance satellite.

They also successfully landed the first stage at the cape. Video below the fold. These first stage landings are becoming entirely routine, which in the long run will probably be their biggest single achievement. Expect this stage to fly again.

Last night John Bachelor emailed me a link to a podcast I did with him from April 2011, six years ago. He has reposted it, entitling it “SpaceX underbids Big Space & the beginning of commercial space supremacy.” During that appearance I noted the signing of SpaceX’s first contract with NRO. That contract led to today’s launch.

About the same time I posted a story describing NASA’s first small development contracts for commercial manned capsules, awarded to Blue Origin, Sierra Nevada, SpaceX and Boeing. In that post, I predicted the following about this commercial effort:

I bet they all get their rockets/capsules launched and in operation, supplying cargos and crews to low Earth orbit, before NASA even test fires its heavy-lift rocket [SLS].

Looks like that’s a prediction that will turn out true.
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North Korea ballistic missile test ends in failure

North Korea on Saturday local time once again attempted and failed to launch a ballistic missile.

Some details here. The missile flew 25 miles, and was a short range missile.

While previously I attributed the consistent failures of every single North Korean missile test to the inherent incompetence of that society’s totalitarian regime, I am now beginning to wonder if espionage from either the U.S. or China might be a contributing factor. It seems unlikely, and the simplest explanation remains engineering failures with North Korea’s aerospace industry. Yet…

Trump administration eases technology restrictions to Saudi Arabia

The Trump has eased satellite technology restrictions that had been placed on Saudi Arabia and the member states of the Gulf Cooperation Council (GCC).

It is believed that the Washington, DC, discussions between the U.S. and the Saudis saw agreements on U.S. support for the Saudi-led coalition in Yemen and also on common approaches towards containing Iran. Of particular significance, however, is the agreement by the U.S. to lift export restrictions on strategic technologies such as unmanned aerial vehicles and reconnaissance satellites to Saudi Arabia, and potentially to other GCC countries.

It is believed that Saudi Arabia is in the market for two to eight high-resolution reconnaissance satellites over the coming years, and it is known that French companies Airbus Defence and Space and Thales Alenia Space have partnered together to offer electro-optical reconnaissance satellites similar to the Falcon Eye satellites being built for the United Arab Emirates.

This change will also benefit U.S. satellite makers, giving them a better chance at winning Saudi contracts. At the same time, it makes available to these Middle East Islamic nations some high level technology that could be used against us.

Update: While his administration has quietly widened cooperation with Saudi Arabia, President Trump is publicly complaining that the Arab country takes advantage of the U.S.

Space, regulation, the Outer Space Treaty, and yesterday’s Senate hearing

Yesterday the space subcommittee of the Senate Commerce committee held a hearing, organized by Senator Ted Cruz (R-Texas), entitled “Reopening the American Frontier: Reducing Regulatory Barriers and Expanding American Free Enterprise in Space.”

You can watch the hearing here. There have also been a number of stories last night and today that summarized the testimony during this hearing.

Having watched the full hearing, I think that most of these stories did not capture well the full political context and significance of yesterday’s event. They focused on Cruz’s advocacy for private space and the call for less and more streamlined regulation by the witnesses. They missed a great deal else.
» Read more

UAE and Algeria sign space accord

The space agencies of the United Arab Emirates (UAE) and Algeria have signed an agreement to enhance their collaboration in space.

The MoU defines a framework for collaboration in the peaceful use of space, in line with the UAE Space Agency’s strategic plans to enhance collaboration with international stakeholders in the sector. The MoU covers various aspects of the peaceful use of outer space, as well as collaboration in the fields of policy-making, regulations, space science, technology, and human capital development in the space sector.

I didn’t even know Algeria had a space agency.

European push for more space regulations under international law

In the European space community and governmental circles, there appears to be a new push to revise the Outer Space Treaty, focused specifically on increasing the treaty’s regulatory power in the area of large satellite constellations and space junk.

This week [the city of] Darmstadt hosts a closed-door, governmental meeting of the Inter-Agency Space Debris Coordination Committee (IADC). Whether it was planned or not, the IADC is set to discuss a much-needed renewal of international space law, which is, experts admit, rather vague. But how far they will go is anyone’s guess.

…There is a palpable sense that the space community needs enforceable international laws and regulations, rather than – or merely to bolster – its current inter-agency agreements. They’ve served us so far, but few countries have actually signed up to them. That leaves a lot of wriggle-room, especially as space becomes increasingly commercialized.

Most of our space activities are governed by the Outer Space Treaty of 1967. It’s a short document that primarily seeks to ensure space operations are “peaceful” and for the good of all humanity. It is complemented by other agreements, including a set of documents on mitigating space debris. “We have a good, coherent set of justified rules and we don’t intend to alter them drastically,” said Christophe Bonnal of the French Space Agency, CNES, and the International Academy of Astronautics (IAA) in closing remarks last week. “But we will improve them at the IADC meeting to include mega-constellations.”

It appears to me that this is a push-back against Luxembourg’s recent announcement that it is going to request a renegotiation of the Outer Space Treaty to allow for property rights in space. What this article is advocating instead is that the treaty increase its control and regulatory power over private satellite constellations, which at present are not covered by the treaty.

Refueling tests begin on Chinese test space station

China has begun the refueling tests between its first unmanned freighter, Tianzhou-1, docked to its test space station, Tiangong-2.

Refuelling tests began at 07:26 Beijing time on Sunday (23:26 UTC Saturday), monitored from the Beijing Aerospace Control Centre (BACC). The refuelling process involves 29 steps and will take five days to complete.

To allow refuelling to take place, the propellant tube and coupling components needed to be perfectly matched after docking, with a margin error of less than 1 millimetre, according to Tianzhou-1 deputy chief designer Chen Qizhong.

The mission involving the Tianzhou and Tiangong spacecraft was designed to prove on-orbit resupply and refuelling technologies and techniques necessary for safe, long-term operation of the Chinese Space Station, which will be permanently crewed by at least three astronauts.

“After refuelling is completed, the residual propellant needs to be drained off. In order to identify security issues during the draining process, it needs to go through a number of tests and verification,” Bai Mingsheng, chief designer of Tianzhou-1, told CCTV+

The article also provides a great deal of information on the station and the freighter.

Vector suborbital rocket test scrubbed

A suborbital test flight of Vector’s orbital rocket was scrubbed on April 6 when a sensor aborted the launch.

The next test flight is scheduled for May 3, after a test April 6 at the company’s test site near the Mohave Desert was scrubbed when a sensor caused an automatic abort, Cantrell said.

Engineers quickly determined the rocket was functional but the company decided not to launch after high winds kicked up. But the rocket is fine, he said, adding that failures are part of the testing process. “We blew a lot of stuff up, trust me,” he said.

The article is more focused on describing in detail the company’s overall status, its fund-raising effort, its future plans, its present operation. This tidbit about the test launch was buried in it. That the flight didn’t fly is not a bad mark on the company, at this point. However, they are under pressure to fly as soon as possible in order to demonstrate success, and delays work against them.

Airbus-Safran gets go-ahead to build first Ariane 6 test rocket

Capitalism in space: The European Space Agency (ESA) has given Airbus-Safran the go-ahead to build the first Ariane 6 rocket, which will be used for ground tests.

It is really important to recognize how this article illustrates the major things that have occurred in how Europe is builds its rockets. Note first that Arianespace is not mentioned at all, even though government bureaucracy has been in charge of ESA’s commercial business for decades. It is not in control any longer and is thus irrelevant. Note also that the design was created solely by Airbus-Safran, and that the only thing ESA did was approve it. The agency did not micromanage it, or revise it, or insist on changes, as would have been the case less than three years ago. Instead, it appears they essentially rubber-stamped it, leaving this work entirely to the private company, which in the end will operate and sell the rocket entirely for profit, while also providing ESA its needed launch vehicle.

At first glance, it appears that the ESA has adopted here the recommendations that I made in my policy paper, Capitalism in space:. In truth, they made these policy changes well before my paper was even written, which helps illustrates forcefully their universal correctness. If you want things built well and efficiently, you give people ownership of their work, you let them create it, and you get out of the way.

Or to use that forgotten word, you let freedom work its magic.

China’s first unmanned freighter successfully docks with test station

Tianzhou-1, China’s first unmanned space freighter, today successfully docked with that nation’s test station module, Tiangong-2.

Tianzhou-1, China’s first cargo spacecraft, which was launched Thursday evening from Wenchang Space Launch Center in south China’s Hainan Province, began to approach Tiangong-2 automatically at 10:02 a.m. Saturday and made contact with the space lab at 12:16 p.m.

The Tianzhou-1 cargo ship and Tiangong-2 space lab will have another two dockings. The second docking will be conducted from a different direction, which aims to test the ability of the cargo ship to dock with a future space station from different directions. In the third docking, Tianzhou-1 will use fast-docking technology. It normally takes about two days to dock, while fast docking will take only six hours.

This testing program by China is very well thought out. They are performing a whole range of docking tests, and they are doing it with an unmanned prototype station that well simulates the full scale station they eventually plan to build.

The Israeli finalist in the Google Lunar X-Prize is out of the running

The Israeli team for the Google Lunar X-Prize, one of the five finalists, can no longer win the race because its SpaceX launch will not take place before the end of the year.

SpaceIL, formed by veterans of the Israeli tech sector, will not be able to launch by the year-end deadline set by the race’s organizers, according to Spaceflight Industries, the space transport company hired to carry the team’s spacecraft on a Falcon 9 rocket launch it purchased from SpaceX.

A Spaceflight executive tells Quartz that SpaceIL’s rocket is still in the launch queue but will be unable to launch before 2018, effectively scotching SpaceIL’s chance at the contest barring a last-minute extension to the deadline.

The article does a nice job of summarizing the situation for all five finalists, all of which appear to have problems that could prevent them from flying before the deadline at the end of 2018. It also notes that an extension could also be granted, as has happened twice before.

France settles union dispute in French Guiana

The union strike that has stopped all Arianespace launches from French Guiana for the past month has been settled.

The article provides no details on the settlement itself. Instead, it outlines the company’s intention to complete all the scheduled launches they had planned for 2017.

Update: This story outlines the basic agreement.

It authorises an emergency relief plan of up to 2.1 billion euros, which includes funds for security, education, healthcare and business aid.

France had already approved 1.1 billion in aid for French Guiana at the beginning of April. The additional funds were offered to meet demands made by the collective and local representatives, who rejected the government’s initial offer.

France will prioritise the implementation of the spending plan, said Bareigts, who described the agreement as a “decisive day for the future of Guiana”.

Essentially, this is a payoff to the unions and group in French Guiana that organized the strike. I am sure a lot of the money will go for good purposes, but I am even more sure that a majority of it will simply end up in the pockets of the strike organizers, doing little to help the people of French Guiana themselves.

Trump signs commercial weather satellite bill

Capitalism in space: President Trump today signed the new law that strongly encourages NOAA to begin using privately acquired weather data.

Among the bill’s provisions is language formally authorizing the National Oceanic and Atmospheric Administration to purchase weather data from commercial satellite systems. The bill authorizes NOAA to spend $6 million a year in fiscal years 2017 through 2020 for a pilot program of data purchases to evaluate the effectiveness of commercial data to support weather forecasting.

NOAA has already started such a pilot program using $3 million appropriated to the agency in fiscal year 2016. In September 2016, NOAA awarded contracts to GeoOptics and Spire, with a combined value of a little more than $1 million, for GPS radio occultation data.

These are only baby steps. At this time NOAA’s bureaucracy views commercial space the same way that NASA did back in 2004: it is a threat and also incapable of doing the job. Since NOAA today, like NASA in 2004, has been unable to do the job very well itself, its ability to argue against private space is limited. Expect the pressure to build for NOAA to hand over more and more of its weather-gathering work to private companies.

How Russia’s next ISS module got contaminated

Russia’s next module for ISS, MLM or Nauka, has been delayed years because of the discovery of sawdust sized metal particles throughout the module’s propulsion system. This article describes how this happened, showing the incredibly incompetence and bad quality control that caused it.

At the time, workers at Khrunichev were cutting pipelines and removing other components of the module’s propulsion system, in order to reconfigure it from its original role as a backup to the Zarya FGB module into the MLM. For example, a set of six tanks, which would be used for refueling of the ISS during the FGB mission, were removed from the exterior of the spacecraft in order to make room for scientific instruments and for the attachment of the European Robotic Arm, ERA.

The official conclusion of the probe said that the contamination had stemmed from the “lack of methodological and technological support for the operations of cutting pipeline connections in the pneumatic and hydraulic system, PGS, which was needed to guarantee the meeting of requirements for ensuring the sterility of the internal cavities in the pipelines and system hardware.” It is essentially bureaucratic speak for letting metallic dust formed during sawing off the lines pour into the interior of the remaining components.

According to one legend circulating at GKNPTs Khrunichev, the workers who were sawing off pipelines from the module thought they were dismantling the entire spacecraft for scrap. That story would sound completely unbelievable if not for other almost as incredible incidents of carelessness, poor quality control and incompetence within the industry in recent years, such as the installing navigation sensors on a Proton rocket in the upside down position or loading a Block DM-03 space tug on another Proton with too much propellant.

Read the whole story. It is most revealing of the overall systematic problems within Russia’s aerospace industry.

China launches first unmanned freighter in test flight

China today successfully launched its first unmanned cargo freighter, Tianzhou-1.

After entering orbit, according to CCTV-Plus interviews with Chinese space officials, Tianzhou-1 is slated to conduct a first docking with Tiangong-2 in a few days. The two spacecraft will then have a two-month in-orbit flight to test the liquid-propellant refueling as well as the cargo spaceship’s control of the combined vehicles, CMSA officials said.

The two spacecraft will also fly separately for three months, during which time the cargo spaceship will complete its own space science experiments. Then the two will have the third docking to test the automatic fast-docking technology, a test to complete the docking within 6 hours.

This was also the second launch of their most powerful rocket, Long March 7, and the second launch from their new spaceport at Wenchang.

Private company builds high resolution space radar facility in Texas

Capitalism in space: A private company, Leo Labs, has built a high resolution space radar facility in Midland, Texas, aimed at providing satellite companies precise location information of their orbiting satellites as well as the space junk that might threaten them.

It is not clear from the article or the company’s webpage whether they are funded by the federal government or by private capital investment. Up until now this data has been routinely gathered by the U.S. military, though obtaining it has I think been somewhat difficult due to security concerns. It seems this company is trying to compete with the government in offering a better data stream that is also easier to obtain.

Posted over Poland during my return flight from Israel.

U.S. space law versus UN Outer Space Treaty

In its effort to provide legal protections to private companies attempting to do asteroid mining, it appears that the U.S.’s most recent space law directly contradicts the UN Outer Space Treaty.

The United States recently passed a law that contains an article that directly concerns asteroid mining and legalizes it. This law is the Commercial Space Launch Competitiveness Act (CSLCA), which was signed into law by President Obama in 2015. The CSLCA addresses resource extraction in Article IV, and states, “A U.S. citizen engaged in commercial recovery of an asteroid resource or a space resource shall be entitled to any asteroid resource or space resource obtained, including to possess, own, transport, use, and sell it according to applicable law, including U.S. international obligations.”

The issue here is that US law is in opposition to a UN treaty, to which the US is a signatory. The Outer Space Treaty is one of the oldest and most important agreements in the history of international space policy. Under the Outer Space Treaty, asteroid mining is illegal, since it is an appropriation of a celestial body by a State. Since the human being or organization that is doing the resource extraction is under the purview of some State, that State is responsible for the actions that are done by the nationals or organizations that are doing the mining.

This responsibility was given to the State by the sixth article of the OST and is strengthened by the Liability Convention of 1972. Since the State is responsible and liable for the actions done by their nationals, this means that the State could be interpreted as appropriating the asteroid.

I am surprised and encouraged to see two different articles about the problems of the Outer Space Treaty appear in the press less than a week after my op-ed on the very subject. I am sure there is no connection, other than the subject is increasingly topical, and others are recognizing the same things I am. Still, that these stories are appearing suggests that the chances are increasing that something will finally be done to either change or abandon the treaty.

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