Introducing MBIE's Bill (policy) team:

Transcription

1 Introducing MBIE's Bill (policy) team: Peter Mumford, Policy Director Katherine MacNeill, Manger {International Strategy Team) Val Sim, Director (Legal) 1

2 '>~ MJNI~JR't'Qf BU!IJN(~~. "" "''' '"'"'[I (MP1,0VM(N'T -.. 'lt, t' I y.j,~'lrtj\' I New Zealand is about to join the ranks of a small number of space launching nations. New Zealand based Rocket Lab is commencing a dedicated, frequent and affordable launch service for small satellites. If Rocket Lab succeeds as it intends, New Zealand's share of commercial space launches will be one of the highest in the world. A new law is necessary to manage the risks to public safety, national security and the environment associated with space activities, and to meet certain international obligations that arise once we commence space launches from New Zealand. However, in regulating, we need to ensure that we facilitate the development of a New Zealand space industry and the associated economic and innovation opportunities this will bring. This Bill provides a proportionate and risk-based decision-framework with flexibility to adjust the requirements of the regulatory regime to respond to rapidly evolving technologies and demand. Specific examples of what is meant by "proportionate", and "risk-based" are provided further on in this briefing. The legislation is consistent with international practice in regulating space activities, with the exception of the high altitude activities regime. New Zealand is the first country in the world to develop a bespoke regime for high altitude activities. We have added high altitude vehicles (HAVs) into the regime because they carry out similar functions to satellites and also create similar risks. The HAV regime is discussed in more detail below. 2

3 SPACE ENTERPRISE SUPPORTS A GROWING NUMBER OF ACTIV TIES ON EARTH Increasing access to space will create opportunities for new and improved services "\A.' MINI$TR\' 01 JU' N[~~ ;i.i.l INNi VA ON b f Mt>l Ml,_ Whereas previously space flight required large scale investment, advances in technology have opened up space to new participants. Increasing access to space will create opportunities for new and better products and services across a range of sectors with the potential for broad-based benefits. The use of satellite-based applications is pervasive including for example, primary industries (agriculture, forestry), ICT, transport, hazard management and emergency response. 3

4 ~~~L/ MINI5TRl OJ BUSINESS., :,.~ INNO\IAHOS f;o llo'iploym '... ~,. The international space treaties were developed during the cold war era. New Zealand ratified three of these treaties. During the subsequent 40 years, New Zealand has been a user of space applications, but we have not launched objects into outer space. Now that launches are planned to commence from New Zealand, we need a legal regime to enable us to meet our international obligations such as: Under the Outer Space Treaty, each state is responsible for its national activities in outer space. The activities of private entities in outer space require authorisation by the State and are subject to ongoing supervision by the responsible State party -in New Zealand, this is the space agency established within MBIE in April Under the Outer Space Treaty and the Liability Convention -we are internationally liable for any damage caused by space objects launched from New Zealand (or by New Zealanders overseas). The Bill includes a provision to manage liability that arises from these obligations. The Bill will also enable New Zealand to meet its obligations under the Technology Safeguards Agreement (TSA) with the United States and to ratify the Registration Convention. The Parliamentary Treaty Examination process for both of these treaties was completed in August

5 ~ I 'UI\IISTR" Of OUS!NESS, ~NOVAtiON & lmplovmi N.,,... ~ We have an opportunity to make New Zealand an attractive location for space activities through designing our regime in a way that facilitates industry development whilst managing risk. The Bill provides a framework for decision-making. To understand the policy intent, you have to read down from the purposes of the Bill. The primary objective is to facilitate the development of a space industry and its safe and secure operation. The Bill will also enable New Zealand to: implement international obligations that we have relating to space activities and space technology, manage New Zealand's liability arising from its obligations as a launching state... 5

6 Objectives... Establish a system to control certain high-altitude activities that take place from New Zealand; and Preserve New Zealand's national security and national interests Many space technologies are dual purpose (i.e. both military and civilian uses) -the Bill will ensure that space activities that take place from New Zealand are aligned with our national interest, including national security. 6

7 au.... Nl"Sula""' 1Nt,...,~-ACC, HASNO, lma.... 4io-comrnllniuriorl.. I~ IKitfK~conttol :~~ MINISTR'f' Of BUSU I[SS INNOVAHON b lmplo'i'm._.....,... The Bill establishes a licensing regime from the ground up to regulate all of the activities we need to: Space launches from New Zealand or by New Zealand nationals overseas Payloads (e.g. satellites) launched from New Zealand or by New Zealand nationals overseas Launch facilities in New Zealand High altitude activities that originate from New Zealand The Bill also provides that the Minister may take into account authorisations granted in countries other than New Zealand as satisfying certain licensing requirements. The ability to recognise aspects of overseas licences is intended to avoid unnecessary duplication and cost for an applicant. 7

8 ...,.,..~ MINISTR't 0' ffuslnes'i., ~"~ INNOVATION f.,.;j.,# ~.. In the near-term, space launches from NZ will be undertaken by Rocket Lab (a US company, US launch vehicle, US satellites). However, the Bill is designed to cover a range of scenarios, including payloads from NZ and other (non-us) countries, and other launch service providers. The Bill sets out criteria for granting a launch licence and payload permit for launch activities from NZ and activities conducted by New Zealanders overseas (the extension of the law to the activities of New Zealanders overseas is necessary to meet our obligations under the Space treaties). Clauses 7 to 11 of the Bill relate to launch licences: Clause 7 requires that in granting a licence, the Minister consider an applicant's technical capability of conducting a safe launch; whether the applicant is a 'fit and proper person' to conduct launch activities; whether the applicant has taken all reasonable steps to manage risks to public safety; and whether the activities are consistent with our international obligations. Even if the Minister is satisfied of all of these matters, the Minister may decline a licence if the Minister considers a proposal is not in the national interest. Clauses 23 to 30 relate to overseas launch licences and impose similar licensing requirements on New Zealand nationals who launch overseas. A launch can be for a period of up to five years and may be renewed. The Minister will have power to vary, revoke, or suspend launch licenses in specified circumstances (e.g. on national interest grounds). Clauses 15 to 22 relate to payload permits: A payload permit will authorise the launch of one or more payloads of a specified type. The criteria are similar to those of a launch licence except that the 'fit and proper' person test does not apply. As with the launch licence, the Minister can vary or revoke payload permits. Clauses 31 to 37 impose similar requirements on NZ nationals who procure the launch of a payload overseas. 8

9 .. HAVs operate from about 1 OOkm down to the normal operating altitudes of aircraftapproximately 18km above sea level. They may carry payloads that perform similar functions to satellites, such as earth monitoring and communications. The legal framework for HAVs is different to that of space activities as the international space treaties do not apply. This means that a New Zealanders operating an HAV outside of New Zealand will not require a licence. However, the process for licensing HAVs will largely be the same as for space activities, with the exception that an HAV will require a single 'bundled' licence for the vehicle and payload. For HAV's that are aircraft (e.g. high altitude balloons and drones), the safety aspects of their operation will be managed under existing civil aviation procedures. This is consistent with the principle of not duplicating existing regimes. 9

10 Civil aviation clearances are required for rockets and HAVs that pass through controlled airspace. These rules are to ensure the safety of aircraft. 10

11 ~ LJ MINISTR"'o Of USINlS!Io, ~ I~NOVAHO... & f'"'ptft~jrolllhl... ~... ~ The Bill contemplates the possibility that in future someone may operate a launch facility and conduct launches on behalf of launch service providers. The inclusion of a launch facility licence will enable this to occur and helps to future proof the Bill. The criteria for issuing a launch facility licence are similar to those that apply to launch licences including the 'fit and proper person' requirement. A launch facility licence may be granted for up to five years and can be renewed. Again, the Minister will have the power to vary, revoke or suspend a launch facility licence. 11

12 BALANCING OPPORTUNITY AND RISK While a regulatory regime for space activities is necessary, highly prescriptive provisions in the primary Act would stifle the development of a space industry. To avoid this, the Bill provides for a risk-based approach with graduated requirements depending on the level of risk (i.e. low-risk activities do not require the same level of regulatory intensity as a medium or high-risk activities). This means the regulatory burden is proportionate to the level of risk associated with the activity. Many space technologies are dual purpose and need to be carefully managed to ensure they are aligned with our national interest, including national security. Applications will be subject to national security assessment involving a consultation and certification process. The consultation process is expected to be sufficient for most applications. Certification acts as a veto in the rare instance that a significant national security risk is identified. If a certificate is issued, the applicant has a right to seek a review by the Inspector General of Security and Intelligence. The Bill is backed up with enforcement powers, and an offences and penalty regime (analogous to other domestic laws). Certain offences (such as the offence to photograph or take anything from a debris recovery area) are necessary to enable New Zealand to protect sensitive US technology (as well as ensure public safety). An infringement regime will apply to less serious non-intentional offences. 12

13 We acknowledge that the regulation making powers are very broad. This is intentional because space technologies and space applications are evolving at a rapid pace. We think it is important to retain this flexibility as it is impossible to predict the new and emerging technologies that regulations might be required to deal with in the future. The Bill includes a statutory requirement for a three year review- this provides a clear process to review and adjust any elements of the Bill. This review will be able to look at all aspects of the regime, including the regulation making powers and matters relating to fees and levies and exemptions from them. 13

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