Interstellar Insights - July 2024

Chevron overruling: What it means for the space industry.

In the much-anticipated Loper Bright decision, the Supreme Court overruled the Chevron deference doctrine, an administrative law precedent that provided the framework for judicial review of federal agencies’ formal interpretations of statutes for the past 40 years. The ruling is expected to have profound implications for federal agencies and those subject to federal regulation, including commercial space companies.

The space industry is known for new and emerging technologies, groundbreaking startups, and novel uses for AI and other technologies. In establishing new regulations to oversee novel space activities, federal agencies may now move more slowly, and investors may be more cautious when reviewing funding requests by emerging space companies, until the impact of the Loper Bright decision becomes more apparent.

DLA Piper Space Exploration and Innovation Co-Chair Tony Lin remarked, “Congress itself may find it necessary to now draft legislation and dispel uncertainty regarding which government agency or agencies will be responsible for authorizing and regulating new and innovative space activities.”

Space debris: Calls to limit uncontrolled reentries.

As concerns regarding space debris have increased, some experts have called for a total ban on uncontrolled reentries, citing growing safety concerns. In March 2024, debris from the International Space Station crashed through a house in Florida – one of several high-profile instances of uncontrolled reentry over the past several years.

Tommaso Sgobba, the executive director of the International Association for the Advancement of Space Safety, told SpaceNews that the rule currently governing uncontrolled reentry is “obsolete because it refers to a time when reentries were a rare event.”

“Space sustainability is an important consideration for our clients and all companies with material assets in orbit. While we assist companies in mitigating these risks, potential regulations could have increasing impacts on commercial space and satellite companies,” noted Matt Botwin, a Principal in DLA Piper’s Telecom practice. “We are continuing to monitor the national and global conversation regarding space sustainability.”

Pentagon seeks partnership with space industry in new commercial space program.

A first-of-its-kind US military government program will partner with commercial space companies in an effort to promote national security.

The Commercial Augmentation Space Reserve (CASR) will incorporate private-sector space equipment into military units. Companies awarded contracts under CASR must provide crucial operational products or services and prove they can contribute to defense of the US.

On May 17, 2024, at a Washington Space Business Roundtable meeting, Colonel Richard Kniseley, Senior Materiel Leader of the Space Systems Command’s Commercial Space Office, said that, under these agreements, companies would commit “to help defend America and its allies,” and noted the program is voluntary.

Contracts under the CASR initiative could start this year.

The government has increasingly recognized space as an integral area of national security – and the risk to American satellites is increasing. Pentagon officials say private companies are essential to support critical satellite capabilities, such as navigation, communications, surveillance, and missile warnings.

“The commercial sector is accelerating in its growth and innovation as the Department of Defense works to integrate commercial space offerings and solutions into its national security framework,” said DLA Piper Space Exploration and Innovation Co-Chair Christian Ford. “While the government is not known for its speed, the commercial industry’s rapid evolution can help expedite the country’s security measures and establish the US as a leader in the national security space environment.”

Planet Labs uses AI to analyze satellite imagery for intelligence sources.

Planet Labs, an imaging company that delivers daily earth photos to government agencies, businesses, and research institutions, has begun using AI to improve their satellite imagery and intelligence capabilities.

In April, the company introduced an “insights platform” in which they use AI to analyze images and data from its own satellites, as well as information from other areas, to produce intelligence. Planet downloads 30 terabytes of data from its satellites daily.

AI allows Planet to rapidly discover “where the data is that you care about,” said Troy Toman, Planet’s Senior Vice President of Product and Software Engineering. “AI gives us a way to take all of this data and begin to turn it into insights more quickly,” but notes “it is not magic.”

While government agencies often only want raw data, AI makes it possible to focus on specific issues, such as tracking illegal activities. Later this year, Planet intends to install AI technology directly into their satellites, shrinking data processing times from hours to seconds.

Chair of DLA Piper Americas AI and Data Analytics practice Danny Tobey noted, “This is an important evolution in the satellite and space industry as a whole. As AI continues to progress, we expect to see a growing need for emerging and existing companies to utilize AI to remain competitive and further their response time and abilities in producing valuable data to government agencies and private stakeholders.” Learn more about DLA Piper’s AI practice.