Assessment and Collection of Space and Earth Station Regulatory Fees for Fiscal Year 2024; Review of the Commission's Assessment and Collection of Regulatory Fees for Fiscal Year 2024, 60572-60578 [2024-16348]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 89, Number 144 (Friday, July 26, 2024)]
[Rules and Regulations]
[Pages 60572-60578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16348]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[MD Docket No. 24-85; MD Docket No. 24-86; FCC 24-70; FR ID 232437]


Assessment and Collection of Space and Earth Station Regulatory 
Fees for Fiscal Year 2024; Review of the Commission's Assessment and 
Collection of Regulatory Fees for Fiscal Year 2024

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission or FCC) adopted a new methodology for assessing annual 
regulatory fees for small satellites and spacecraft, and included space 
stations that are principally used for Rendezvous & Proximity 
Operations (RPO) or On-Orbit Servicing (OOS), including Orbit Transfer 
Vehicles (OTV), in the existing fee category for ``small satellites'' 
on an interim basis until the Commission can develop more experience in 
how these space stations will be regulated. These changes are intended 
to be effective for fiscal year (FY) 2024.

DATES: Effective on September 13, 2024.

FOR FURTHER INFORMATION CONTACT: Stephen Duall, Space Bureau, at (202) 
418-1103 or [email protected]; Roland Helvajian, Office of the 
Managing Director, at (202) 418-0444 or [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order in MD Docket No. 24-85 and MD Docket No. 24-86, FCC 24-70, 
adopted and released on June 13, 2024 (Report and Order). The full text 
of this document is available at https://www.fcc.gov/document/fcc-changes-certain-space-station-regulatory-fees-fy-2024.
    Final Regulatory Flexibility Analysis. The Regulatory Flexibility 
Act of 1980, as amended (RFA), requires that an agency prepare a 
regulatory flexibility analysis for notice and comment rulemakings, 
unless the agency certifies that ``the rule will not, if promulgated, 
have a significant economic impact on a substantial number of small 
entities.'' The Commission has prepared an Final Regulatory Flexibility 
Analysis (FRFA) concerning the potential impact of the proposed rule 
and policy changes contained in the Report and Order. The FRFA is set 
forth in the appendix of the FCC Document https://www.fcc.gov/document/fcc-changes-certain-space-station-regulatory-fees-fy-2024 and a summary 
is included in the Procedural Matters section below.

Synopsis

I. Introduction

    Pursuant to section 9 of the Communications Act of 1934, as 
amended, (Communications Act or Act), the Commission adopts a 
methodology change for one category of fee payors and include a type of 
space station in an existing category on an interim basis. These 
changes will be effective for the fiscal year 2024 (FY 2024) assessment 
and collection of regulatory fees. Specifically, the Commission adopts 
a new methodology for assessing regulatory fees for small satellites 
and spacecraft licensed under Sec. Sec.  25.122 and 25.123 of the 
Commission's rules, and include space stations that are principally 
used for Rendezvous & Proximity Operations (RPO) or On-Orbit Servicing 
(OOS), including Orbit Transfer Vehicles (OTV), in the existing fee 
category for ``small satellites'' on an interim basis until the 
Commission can develop more experience in how these space stations will 
be regulated. The Commission finds that these changes better serve the 
requirements and purpose of section 9 of the Act, and there is 
unopposed support in the record for adoption of these two proposals in 
time for the changes to be effective for FY 2024.
    The Commission defers action on other proposals made in the Notice 
of Proposed Rulemaking (89 FR 20582, March 25, 2024) that the 
Commission adopted in March 2024 (Space and Earth Station Regulatory 
Fees NPRM). The Commission is continuing to consider the other 
proposals in light of the record received on those issues and will 
decide which, if any, may benefit from further development of the 
record. It anticipates acting on the remaining proposals in the Space 
and Earth Station Regulatory Fees NPRM in the near term.

II. Background

    Section 9 of the Act obligates the Commission to assess and collect 
regulatory fees each year in an amount that can reasonably be expected 
to equal the amount of its annual salaries and expenses (S&E) 
appropriation. Thus, the Commission has no discretion regarding the 
total amount to be collected in any given fiscal year. In accordance 
with the statute, each year the Commission proposes adjustments to the 
prior fee schedule under section 9(c) to ``(A) reflect unexpected 
increases or decreases in the number of units subject to the payment of 
such fees; and (B) result in the collection of the amount required'' by 
the Commission's annual appropriation. The Commission will also propose 
amendments to the fee schedule under section 9(d) ``if the Commission 
determines that the schedule requires amendment so that such fees 
reflect the full-time equivalent number of employees within the bureaus 
and offices of the Commission, adjusted to take into account factors 
that are reasonably related to the benefits provided to the payor of 
the fee by the Commission's activities.'' In administering its 
regulatory fee program, the agency strives to adhere to the goals of 
ensuring that the program is fair, administrable, and sustainable.
    The Commission released the Space and Earth Station Regulatory Fees 
NPRM on March 13, 2024, which initiated an examination and review of 
regulatory fees for space and earth station payors that are regulated 
by the new Space Bureau. When the Commission adopted regulatory fees 
for FY 2023, it noted that it would be the last year for doing so using 
the nomenclature of certain fee payors being regulated by the 
International Bureau. The Commission noted that the creation of the 
Space Bureau and Office of International Affairs could result in 
changes in the assessment of regulatory fees for space and earth 
station fee payors resulting from changes in Full Time Equivalents 
(FTEs), due to increased oversight on various relevant industries. The 
Commission anticipated that the changes in the industry that resulted 
in the creation of the Space Bureau would likely also result in changes 
in the relative FTE burdens between and among space and earth station 
fee payors. Accordingly, the Commission sought comment in the Space and 
Earth Station Regulatory Fees NPRM on a range of proposed changes 
related to the assessment of regulatory fees for space and earth 
stations under the Commission's existing regulatory fee methodology, as 
well as under a proposed alternative methodology for assessing space 
station regulatory fees.
    The Commission received 16 comments and 17 reply comments in 
response to the Space and Earth Station Regulatory Fees NPRM. In 
addition, several entities made presentations to the Commission 
pursuant to its rules governing ex parte communications.
    In addition, on June 13, 2024, the Commission released the Second 
Notice of Proposed Rulemaking in MD Docket No. 24-86 (89 FR 53276, June 
25, 2024), seeking comment on the Commission's proposed methodology and 
regulatory

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fees for FY 2024 (FY 2024 Regulatory Fees NPRM). The FY 2024 Regulatory 
Fees NPRM does not seek comment again on the methodology for assessing 
space and earth station regulatory fees; rather, it seeks comment on 
the proposed regulatory fee rates for space and earth station payors 
for FY 2024 that were based on the existing methodology used in FY 2023 
and also the proposals set forth in the Space and Earth Station 
Regulatory Fees NPRM. The proposed regulatory fee rates are set forth 
in appendices A, B, and E of the FY 2024 Regulatory Fees NPRM.

III. Discussion

    The Commission adopts two proposals made in the Space and Earth 
Station Regulatory Fees NPRM: amending the methodology for assessing 
fees for small satellites, and including space stations that are 
principally used for RPO or OOS, as well as OTVs, in the existing fee 
category for ``small satellites'' on an interim basis. Commenters 
express strong support in the record for adoption of these two 
proposals, and no comments oppose adoption of these proposals. 
Accordingly, the Commission adopts these proposals to be effective for 
FY 2024.

A. Adoption of New Methodology for Assessing Fees for Small Satellites

    The Commission adopts the proposal in the Space and Earth Station 
Regulatory Fees NPRM to set the regulatory fee for ``Space Stations 
(per license/call sign in non-geostationary orbit) (47 CFR part 25) 
(Small Satellite)'' for FY 2024 at the level set for FY 2023 ($12,215), 
with annual adjustments thereafter to reflect the percentage change in 
the FCC appropriation, unit count, and FTE allocation percentage from 
the previous fiscal year. Comments received in response to the Space 
and Earth Station Regulatory Fees NPRM support adoption of this 
proposal, and no party opposes it.
    As observed in the Space and Earth Station Regulatory Fees NPRM, 
the small satellite fee rate is currently calculated by taking the 
average of the calculated fee rate for space stations in the Space 
Stations (Non-Geostationary Orbit)--Other (``NGSO-Other'') and Space 
Stations (Non-Geostationary Orbit)--Less Complex (``NGSO-Less 
Complex'') categories, multiplying this average by 5% (1/20) and 
rounding it to the nearest $5. The small satellite fee rate is then 
multiplied by the number of small satellite units and deducted from the 
share of space station regulatory fees allocated to non-geostationary 
orbit (NGSO) space stations. This remaining amount is then divided 
between NGSO-Other and NGSO-Less Complex based on an 80/20 split and 
reduced from the target goals of NGSO-Other and NGSO-Less Complex 
respectively. Because the small satellite fee is based on the fees 
assessed for NGSO-Other and NGSO-Less Complex categories, the increased 
fees expected for these two categories could lead to greatly increased 
fees for the small satellite regulatory fee category beginning in FY 
2024 if the current method for assessing regulatory fees for small 
satellites is unchanged.
    As the Space and Earth Station Regulatory Fees NPRM noted, the FTE 
burden arising from licensing and regulating small satellite matters 
has not increased since FY 2023. The additional FTE resources allocated 
to the Space Bureau are not intensively involved in the licensing and 
regulatory oversight of small satellites. As a result, the overall 
percentage of FTE burden for small satellites is less than the 1/20th 
burden of NGSO space stations previously estimated. For this reason, 
the Commission will continue to use the FY 2023 regulatory fee for FY 
2024. It finds that the regulatory fee for small satellites established 
for FY 2023 appropriately estimates the benefits received by such fee 
payors from the FTEs spent on licensing and regulating small 
satellites, without analyzing the FTE benefits as a proportion of 
another category of space station. In addition, the proposals made in 
the Space and Earth Station Regulatory Fees NPRM to create 
subcategories within the NGSO-Other category for ``small'' and 
``large'' constellations would add to the complexity of calculating the 
appropriate share of FTE resources allocated to small satellites, if 
those proposals were to be adopted. This added complexity does not 
correspond to any additional benefit to the calculation of FTE 
resources allocated to small satellites. Furthermore, separation of the 
methodology for assessing regulatory fees for small satellites from the 
regulatory fees for NGSO space stations permits freer consideration of 
the appropriate regulatory fee categories for NGSO space stations 
without necessitating consideration of potential unintended 
consequences for small satellite fee payors.
    For FY 2024, the Commission does not make any other changes to how 
small satellite regulatory fees are incorporated into the existing 
methodology for assessing space station regulatory fees. That is, it 
will continue to multiply the per unit regulatory fee for small 
satellites by the number of small satellite units for the fiscal year 
and deduct this amount from the NGSO share of space station regulatory 
fees, divided between NGSO-Other and NGSO-Less Complex based on an 80/
20 split and reduced from the target goals of NGSO-Other and NGSO-Less 
Complex respectively. The Commission will implement the changes to the 
methodology for assessing fees for small satellites made in the Report 
and Order as part of the order adopting FCC-wide regulatory fees for FY 
2024.

B. Interim Assessment of Regulatory Fees on RPO, OOS, and OTV as Small 
Satellites

    The Commission adopts the proposal made in the Space and Earth 
Station Regulatory Fees NPRM to assess regulatory fees on spacecraft 
primarily performing RPO and OOS by including them in the existing 
regulatory fee category ``Space Stations (per license/call sign in non-
geostationary orbit) (Small Satellites),'' on an interim basis, 
regardless of the orbit in which they are designed to operate. RPO and 
OOS missions can include satellite refueling, inspecting and repairing 
in-orbit spacecraft, capturing and removing debris, and transforming 
materials through manufacturing while in space. The Commission also 
concludes that it is appropriate to assess regulatory fees on OTVs in 
the same manner. The record in this proceeding supports adoption of 
these proposals, effective for FY 2024, and no party opposes adoption.
    The Commission has previously adopted the following regulatory fee 
categories for space stations: Space Stations (Geostationary Orbit); 
Space Stations (Non-Geostationary Orbit)--Less Complex; Space Stations 
(Non-Geostationary Orbit)--Other; and Space Station (Small Satellites). 
Currently, due to the nascent nature of OOS and RPO industry, or more 
generally ``in-space servicing'' industries, the Commission has not 
adopted a distinct regulatory fee category for such operations, despite 
that fact that spacecraft have begun to operate under part 25 of the 
Commission's rules for radiocommunications while conducting these types 
of operations. Previously, the Commission determined that the record 
was insufficiently complete to adopt a separate regulatory fee category 
for spacecraft performing OOS and RPO. In the Space and Earth Station 
Regulatory Fees NPRM, the Commission explained that it is not 
appropriate to assess regulatory fees on RPO, OOS, and OTV space 
stations under existing regulatory fee categories for Space Stations 
(Geostationary orbit) or Space Stations (Non-Geostationary Orbit)--
Other or Less Complex because the

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regulatory burden of RPO, OOS, and OTV space stations is currently far 
less than that of other geostationary orbit (GSO) and NGSO space 
stations in those existing fee categories. As the Space and Earth 
Station Regulatory Fees NPRM stated, the Commission believes that 
further delay in addressing the appropriate regulatory fee is no longer 
appropriate even where, as here, the Commission has not adopted a 
separate regulatory category for this type of operation. The Commission 
tentatively concluded in the Space and Earth Station Regulatory Fees 
NPRM that the regulatory burden of RPO, OOS, and OTV space stations is 
more similar to that presented by small satellite space station 
licensees. For instance, these type of licensees are few in number and 
involve a relatively small number of space stations that have limited 
duration and scope of use, and operate using shared spectrum resources, 
which require far fewer FTE resources to license and regulate. The 
Commission adopts its tentative conclusion that the existing small 
satellite regulatory fee category is the most appropriate category to 
apply until such time as the Commission determines that separate fee 
categories for RPO, OOS, and OTV space stations are appropriate. 
Moreover, the Commission agrees with comments that it will be in a 
better position to adopt separate new fee categories, if appropriate, 
for RPO, OOS, and OTV space stations after it gains more experience 
with their licensing and regulation.
    Solely for the purpose of assessing regulatory fees, the Commission 
will include space stations primarily performing RPO and OOS, as well 
as OTVs, within the existing Space Stations (Small Satellite) 
regulatory fee category, on an interim basis, rather than creating a 
new regulatory fee category for RPO, OOS, and OTV space stations. The 
International Bureau and Space Bureau have considered applications for 
RPO, OOS, and OTV space stations and issued licenses for such space 
stations under the existing regulatory framework of part 25 of the 
Commission's rules, and such stations are already operational and 
subject to payment of regulatory fees. Given this immediate need to 
assess regulatory fees on RPO, OOS, and OTV space stations now and in 
the near future, the Commission concludes that the purposes of section 
9 of the Act would be best met by assessing regulatory fees on an 
interim basis under the existing category of fees associated with the 
least-burdensome set of space station regulatees. The Commission 
believes this approach is preferable to waiting for additional 
experience and, in the interim, potentially subjecting existing RPO, 
OOS, and OTV space stations subject to regulatory fees that do not 
reflect the amount of regulatory work required by these nascent 
services. As the Commission gains more experience with the regulation 
of RPO, OOS, OTV space stations, it will be in a better position to 
decide if it should adopt a new, separate fee category for RPO, OOS, 
and OTV space stations or make any further modifications.
    The Commission also adopts the proposal to assess RPO, OOS, and OTV 
space stations using the small satellite fee category regardless of the 
orbit utilized. The Commission affirms the tentative conclusion in the 
Space and Earth Station Regulatory Fees NPRM, and agrees with comments, 
that the rationale for using the small satellite regulatory fee 
category to assess fees on RPO, OOS, and OTV space stations applies 
regardless of whether the RPO, OOS, or OTV space stations operate in 
geostationary or non-geostationary orbit. The Commission also adopts 
the proposal to assess the regulatory fee for RPO, OOS, and OTV space 
stations on a ``per license/call sign'' basis as is the case for small 
satellites payors, rather than on the ``per system'' basis used for 
Space Stations (Non-geostationary Orbit). Although no party commented 
on this proposal, the Commission concludes that the reasons that 
supported assessing regulatory fees on small satellites on a ``per 
license/call sign'' basis support treating RPO, OOS, and OTV space 
stations in the same manner. The Commission will implement the changes 
to the methodology for assessing fees for RPO, OOS, and OTV space 
stations adopted in the Report and Order as part of the order adopting 
FCC-wide regulatory fees for FY 2024.
    The Commission declines, at this time, to assess regulatory fees on 
all ``ISAM space stations'' using the small satellite fee category, as 
proposed in some comments in this proceeding. In 2022, the Commission 
initiated a Notice of Inquiry (87 FR 56365, September 14, 2022) 
regarding the regulatory needs related to in-space servicing, assembly, 
and manufacturing--or ``ISAM''--that could include such services as RPO 
and OOS. The Commission has since adopted a Notice of Proposed 
Rulemaking (89 FR 18875, March 15, 2024) seeking comment on a framework 
for licensing ISAM space stations. That rulemaking proceeding, which is 
considering the regulatory framework for such services, remains 
pending. The Commission finds that it is premature to make a decision 
regarding the assessment of regulatory fees on ISAM space stations for 
which the definition and regulatory framework are still being 
considered and for which there are no applications pending or licenses 
issued. The Commission expects to revisit this issue in the future, 
after conclusion of the ISAM rulemaking, when the framework and 
expected FTE burdens for licensing and regulating ISAM space stations 
are better known. In addition, although one commenter suggests that the 
Commission more clearly define RPO, OOS, and OTV by their 
characteristics in order to remove uncertainty by applicants with 
regards to their expected regulatory fees, it declines to do so at this 
time, because the proposed characteristics for defining RPO, OOS, and 
OTV, such as limited duration of operations, ability to share spectrum, 
and low number of stations, have not been defined in the Commission's 
rules and are outside the scope of a regulatory fee proceeding. The 
Commission also declines at this time to include missions involving 
`habitable' or `crewed' space stations in the existing fee category for 
small satellites, as proposed by one commenter, finding it is premature 
to make a decision regarding the assessment of regulatory fees for 
potential future types of space stations for which the FTE benefits are 
not reasonably known and for which there are no applications pending or 
licenses issued.
    Finally, the Commission declines to address at this time the 
proposal in the Space and Earth Station Regulatory Fees NPRM that RPO 
or OOS space stations that are attached to another space station as 
part of servicing or mission extension operations be assessed 
regulatory fees separate from, and in addition to, any regulatory fees 
assessed on the space station that is being serviced or that is having 
its mission extended. The Commission had previously tentatively 
concluded that RPO and OOS space stations joined to GSO space stations 
during servicing or mission extension operations should not be assessed 
separate regulatory fees, despite the RPO or OOS space stations being 
assigned their own call signs, which is the unit usually used to assess 
regulatory fees for space stations. Although this tentative conclusion 
was never adopted, currently RPO or OOS space stations attached to 
another space station have not been assessed separate regulatory fees. 
The Space and Earth Station Regulatory Fees NPRM sought comment on this 
prior tentative conclusion and suggested that the

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requirements and purpose of section 9 of the Act would be better met by 
assessing regulatory fees on such attached RPO or OOS space stations.
    The Commission finds that consideration of this proposal would 
benefit from consideration of and action on the proposal in the Space 
and Earth Station Regulatory Fees NPRM to assess regulatory fees on all 
authorized space stations, not just on operational space stations as is 
currently the case because the rationale for assessing fees on 
authorized stations would support the rationale for assessing 
regulatory fees on RPO and OOS space stations regardless whether they 
are attached to a serviced space station. Action on this issue may 
benefit from the Commission's consideration of the proposal regarding 
assessing regulatory fees on authorized, not just operational, space 
stations. Thus, it plans to consider those matters at the same time in 
a future Commission item acting on the proposals made in the Space and 
Earth Station Regulatory Fees NPRM.

Final Regulatory Flexibility Analysis

    As required by the Regulatory Flexibility Act of 1980, as amended 
(RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Space and Earth Station Regulatory Fees NPRM. The 
Commission sought written public comment on the proposals in the Space 
and Earth Station Regulatory Fees NPRM, including comment on the IRFA. 
No comments were filed addressing the IRFA. The Final Regulatory 
Flexibility Analysis (FRFA) conforms to the RFA.

Need for, and Objectives of, the Report and Order

    The Commission is required by Congress pursuant to section 9 of the 
Act to assess and collect regulatory fees each year to recover the 
regulatory costs associated with the Commission's oversight and 
regulatory activities in an amount that can reasonably be expected to 
equal the amount of its annual appropriation. As part of last year's 
adoption of regulatory fees, the Commission noted that FY 2023 would be 
the last year where the Commission will do so for the International 
Bureau, given the creation of the Space Bureau, and Office of 
International Affairs. The Commission also noted that an examination of 
the regulatory fees, and categories for NGSO space stations would be 
useful in light of changes resulting from the creation of the Space 
Bureau, and as part of a more holistic review of the FTE burden of the 
Space Bureau in fiscal year 2024 (FY 2024). The Space and Earth Station 
Regulatory Fees NPRM commenced the examination and review of regulatory 
fees for space and earth station payors regulated by the new Space 
Bureau, specifically seeking comment on a range of proposed changes to 
the assessment of regulatory fees for space and earth stations under 
the existing methodology. The Space and Earth Station Regulatory Fees 
NPRM also proposed an alternative methodology for assessing space 
station regulatory fees that would eliminate the distinction between 
GSO, NGSO, and all the subcategories of NGSO, while preserving a 
separate fee category for small satellites.
    In the Report and Order, the Commission adopts two changes to the 
assessment and collection of its annual regulatory fees for space 
station payors for FY 2024. The adopted changes implement a new 
methodology for assessing fees for small satellites and spacecraft 
licensed under Sec. Sec.  25.122 and 25.123 of the Commission's rules 
that sets the regulatory fee for ``Space Stations (per license/call 
sign in non-geostationary orbit) (47 CFR part 25) (Small Satellite)'' 
for FY 2024 and future fiscal years at the level set for FY 2023, 
annually adjusted to reflect the percentage change in the appropriation 
from the previous fiscal year. The Commission also implements a change 
that includes, on an interim basis, space stations that are principally 
used for RPO or OOS, including OTVs, in the existing fee category for 
``small satellites'' until the Commission can develop more experience 
in how these space stations will be regulated. The Commission defers 
actions on other proposals contained in the Space and Earth Station 
Regulatory Fees NPRM to allow for further development of the record and 
expects to address these matters to be effective for FY 2025.

Summary of Significant Issues Raised by Public Comments in Response to 
the IRFA

    There were no comments filed that specifically addressed the 
proposed rules and policies in the IRFA.

Response to Comments by the Chief Counsel for Advocacy of the Small 
Business Administration

    Pursuant to the Small Business Jobs Act of 2010, which amended the 
RFA, the Commission is required to respond to any comments filed by the 
Chief Counsel for Advocacy of the Small Business Administration (SBA), 
and to provide a detailed statement of any change made to the proposed 
rules as a result of those comments. The Chief Counsel did not file any 
comments in response to the proposed rules or policies in this 
proceeding.

Description and Estimate of the Number of Small Entities to Which the 
Rules Will Apply

    The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the rules adopted. The RFA generally defines the term 
``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one which: (1) is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the SBA.
    Small Businesses, Small Organizations, Small Governmental 
Jurisdictions. The Commission's actions, over time, may affect small 
entities that are not easily categorized at present. The Commission 
therefore describes, at the outset, three broad groups of small 
entities that could be directly affected. First, while there are 
industry specific size standards for small businesses that are used in 
the regulatory flexibility analysis, according to data from the SBA's 
Office of Advocacy, in general a small business is an independent 
business having fewer than 500 employees. These types of small 
businesses represent 99.9% of all businesses in the United States, 
which translates to 33.2 million businesses.
    Next, the type of small entity described as a ``small 
organization'' is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000 
or less to delineate its annual electronic filing requirements for 
small exempt organizations. Nationwide, for tax year 2022, there were 
approximately 530,109 small exempt organizations in the U.S. reporting 
revenues of $50,000 or less according to the registration and tax data 
for exempt organizations available from the IRS.
    Finally, the small entity described as a ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' U.S. Census 
Bureau data from the 2022 Census of Governments indicate there were 
90,837 local governmental jurisdictions

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consisting of general purpose governments and special purpose 
governments in the United States. Of this number, there were 36,845 
general purpose governments (county, municipal, and town or township) 
with populations of less than 50,000 and 11,879 special purpose 
governments (independent school districts) with enrollment populations 
of less than 50,000. Accordingly, based on the 2022 U.S. Census of 
Governments data, the Commission estimates that at least 48,724 
entities fall into the category of ``small governmental 
jurisdictions.''
    Direct Broadcast Satellite (DBS) Service. DBS service is a 
nationally distributed subscription service that delivers video and 
audio programming via satellite to a small parabolic ``dish'' antenna 
at the subscriber's location. DBS is included in the Wired 
Telecommunications Carriers industry which comprises establishments 
primarily engaged in operating and/or providing access to transmission 
facilities and infrastructure that they own and/or lease for the 
transmission of voice, data, text, sound, and video using wired 
telecommunications networks. Transmission facilities may be based on a 
single technology or combination of technologies. Establishments in 
this industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired telephony 
services, including VoIP services, wired (cable) audio and video 
programming distribution; and wired broadband internet services. By 
exception, establishments providing satellite television distribution 
services using facilities and infrastructure that they operate are 
included in this industry.
    The SBA small business size standard for Wired Telecommunications 
Carriers classifies firms having 1,500 or fewer employees as small. 
U.S. Census Bureau data for 2017 show that 3,054 firms operated in this 
industry for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Based on this data, the majority of firms in 
this industry can be considered small under the SBA small business size 
standard. According to Commission data however, only two entities 
provide DBS service--DIRECTV (owned by AT&T) and DISH Network, which 
require a great deal of capital for operation. DIRECTV and DISH Network 
both exceed the SBA size standard for classification as a small 
business. Therefore, the Commission must conclude based on internally 
developed Commission data, in general DBS service is provided only by 
large firms.
    Fixed Satellite Small Transmit/Receive Earth Stations. Neither the 
SBA nor the Commission have developed a small business size standard 
specifically applicable to Fixed Satellite Small Transmit/Receive Earth 
Stations. Satellite Telecommunications is the closest industry with an 
SBA small business size standard. The SBA size standard for this 
industry classifies a business as small if it has $38.5 million or less 
in annual receipts. For this industry, U.S. Census Bureau data for 2017 
show that there was a total of 275 firms that operated for the entire 
year. Of this total, 242 firms had revenue of less than $25 million. 
Additionally, based on Commission data in the 2022 Universal Service 
Monitoring Report, as of December 31, 2021, there were 65 providers 
that reported they were engaged in the provision of satellite 
telecommunications services. Of these providers, the Commission 
estimates that approximately 42 providers have 1,500 or fewer 
employees. Consequently, using the SBA's small business size standard, 
a little more than half of these providers can be considered small 
entities.
    Fixed Satellite Very Small Aperture Terminal (VSAT) Systems. 
Neither the SBA nor the Commission have developed a small business size 
standard specifically applicable to Fixed Satellite Very Small Aperture 
Terminal (VSAT) Systems. A VSAT is a relatively small satellite antenna 
used for satellite-based point-to-multipoint data communications 
applications. VSAT networks provide support for credit verification, 
transaction authorization, and billing and inventory management. 
Satellite Telecommunications is the closest industry with an SBA small 
business size standard. The SBA size standard for this industry 
classifies a business as small if it has $38.5 million or less in 
annual receipts. For this industry, U.S. Census Bureau data for 2017 
show that there were a total of 275 firms that operated for the entire 
year. Of this total, 242 firms had revenue of less than $25 million. 
Additionally, based on Commission data in the 2022 Universal Service 
Monitoring Report, as of December 31, 2021, there were 65 providers 
that reported they were engaged in the provision of satellite 
telecommunications services. Of these providers, the Commission 
estimates that approximately 42 providers have 1,500 or fewer 
employees. Consequently using the SBA's small business size standard, a 
little more than half of these providers can be considered small 
entities.
    Home Satellite Dish (HSD) Service. HSD or the large dish segment of 
the satellite industry is the original satellite-to-home service 
offered to consumers and involves the home reception of signals 
transmitted by satellites operating generally in the C-band frequency. 
Unlike DBS, which uses small dishes, HSD antennas are between four and 
eight feet in diameter and can receive a wide range of unscrambled 
(free) programming and scrambled programming purchased from program 
packagers that are licensed to facilitate subscribers' receipt of video 
programming. Because HSD provides subscription services, HSD falls 
within the industry category of Wired Telecommunications Carriers. The 
SBA small business size standard for Wired Telecommunications Carriers 
classifies firms having 1,500 or fewer employees as small. U.S. Census 
Bureau data for 2017 show that there were 3,054 firms that operated for 
the entire year. Of this total, 2,964 firms operated with fewer than 
250 employees. Thus, under the SBA size standard, the majority of firms 
in this industry can be considered small.
    Mobile Satellite Earth Stations. Neither the SBA nor the Commission 
have developed a small business size standard specifically applicable 
to Mobile Satellite Earth Stations. Satellite Telecommunications is the 
closest industry with a SBA small business size standard. The SBA small 
business size standard classifies a business with $38.5 million or less 
in annual receipts as small. For this industry, U.S. Census Bureau data 
for 2017 show that there were 275 firms that operated for the entire 
year. Of this number, 242 firms had revenue of less than $25 million. 
Thus, for this industry under the SBA size standard, the Commission 
estimates that the majority of Mobile Satellite Earth Station licensees 
are small entities. Additionally, based on Commission data as of 
February 1, 2024, there were 16 Mobile Satellite Earth Stations 
licensees. The Commission does not request nor collect annual revenue 
information, and is therefore unable to estimate the number of mobile 
satellite earth stations that would be classified as a small business 
under the SBA size standard.
    Satellite Master Antenna Television (SMATV) Systems, also known as 
Private Cable Operators (PCOs). SMATV systems or PCOs are video 
distribution facilities that use closed transmission paths without 
using any public right-of-way. They acquire video programming and 
distribute it via terrestrial wiring in urban and suburban multiple 
dwelling units such as apartments and condominiums, and commercial 
multiple tenant units such as hotels and

[[Page 60577]]

office buildings. SMATV systems or PCOs are included in the Wired 
Telecommunications Carriers' industry which includes wireline 
telecommunications businesses. The SBA small business size standard for 
Wired Telecommunications Carriers classifies firms having 1,500 or 
fewer employees as small. U.S. Census Bureau data for 2017 show that 
there were 3,054 firms in this industry that operated for the entire 
year. Of this total, 2,964 firms operated with fewer than 250 
employees. Thus, under the SBA size standard, the majority of firms in 
this industry can be considered small.
    Satellite Telecommunications. This industry comprises firms 
``primarily engaged in providing telecommunications services to other 
establishments in the telecommunications and broadcasting industries by 
forwarding and receiving communications signals via a system of 
satellites or reselling satellite telecommunications.'' Satellite 
telecommunications service providers include satellite and earth 
station operators. The SBA small business size standard for this 
industry classifies a business with $38.5 million or less in annual 
receipts as small. U.S. Census Bureau data for 2017 show that 275 firms 
in this industry operated for the entire year. Of this number, 242 
firms had revenue of less than $25 million. Additionally, based on 
Commission data in the 2022 Universal Service Monitoring Report, as of 
December 31, 2021, there were 65 providers that reported they were 
engaged in the provision of satellite telecommunications services. Of 
these providers, the Commission estimates that approximately 42 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, a little more than half of these 
providers can be considered small entities.
    All Other Telecommunications. This industry is comprised of 
establishments primarily engaged in providing specialized 
telecommunications services, such as satellite tracking, communications 
telemetry, and radar station operation. This industry also includes 
establishments primarily engaged in providing satellite terminal 
stations and associated facilities connected with one or more 
terrestrial systems and capable of transmitting telecommunications to, 
and receiving telecommunications from, satellite systems. Providers of 
internet services (e.g. dial-up ISPs) or Voice over Internet Protocol 
(VoIP) services, via client-supplied telecommunications connections are 
also included in this industry. The SBA small business size standard 
for this industry classifies firms with annual receipts of $35 million 
or less as small. U.S. Census Bureau data for 2017 show that there were 
1,079 firms in this industry that operated for the entire year. Of 
those firms, 1,039 had revenue of less than $25 million. Based on this 
data, the Commission estimates that the majority of ``All Other 
Telecommunications'' firms can be considered small.

Description of Projected Reporting, Recordkeeping and Other Compliance 
Requirements for Small Entities

    The Report and Order does not change the Commission's current 
information collection, reporting, recordkeeping, or compliance 
requirements for small entities. Small and other regulated entities are 
required to pay regulatory fees on an annual basis. The cost of 
compliance with the annual regulatory assessment for small entities is 
the amount assessed for their regulatory fee category and should not 
require small entities to hire professionals to comply.
    Small entities that qualify can take advantage of the exemption 
from payment of regulatory fees allowed under the de minimis threshold. 
As discussed in the Space and Earth Station Regulatory Fees NPRM, small 
entities may also request a waiver, reduction, deferral, and/or 
installment payment of their regulatory fees. The waiver process 
provides smaller entities that may not be familiar with the 
Commission's procedural filing rules an easier filing process.

Steps Taken To Minimize the Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    The RFA requires an agency to provide ``a description of the steps 
the agency has taken to minimize the significant economic impact on 
small entities . . . including a statement of the factual, policy, and 
legal reasons for selecting the alternative adopted in the final rule 
and why each one of the other significant alternatives to the rule 
considered by the agency which affect the impact on small entities was 
rejected.''
    In the Report and Order, the Commission adopts the proposal in the 
Space and Earth Station Regulatory Fees NPRM to set the regulatory fee 
for ``Space Stations (per license/call sign in non-geostationary order) 
(47 CFR part 25) (Small Satellite)'' for FY 2024 at the level set for 
FY 2023 ($12,215), with annual adjustments thereafter to reflect the 
percentage change in the FCC appropriation, unit count, and FTE 
allocation percentage from the previous year. The Report and Order 
finds that the administrability and sustainability of regulatory fees 
for small satellites would be better served by treating them as the 
Commission has historically treated the regulatory fees for earth 
stations--that is, a fixed regulatory fee that is adjusted from year-
to-year on, rather than as a percentage of the Space Bureau's overall 
share of regulatory fee allocation, or as a percentage of other 
categories of space station fee payors. This change would significantly 
minimize the economic impact of regulatory fees potentially faced by 
small satellites. Without this change, the fee amount for the small 
satellite category for FY 2024 could be substantially greater than the 
fee assessed for FY 2023. Further, the record contains no objections to 
this approach.
    The Report and Order also adopts the proposal, to assess regulatory 
fees on spacecraft primarily performing RPO and OOS, including OTV, by 
including them, on an interim basis, in the existing regulatory fee 
category ``Space Stations (per license/call sign in non-geostationary 
orbit) (Small Satellites)'' regardless of the orbit in which they are 
designed to operate in. The record in this proceeding not only supports 
this proposal, but no commenting party opposed it. The Space Bureau has 
received relatively few applications for RPO, OOS, or OTV space 
stations, and although it anticipates receiving more in the near 
future, the amount of FTE resources required at the present time to 
regulate these services is more similar to that presented by small 
satellite space station licensees, which are also few in number, and 
involve a relatively small number of space stations that have limited 
duration and scope of use and operate using shared spectrum resources. 
The Commission considered the alternative of adopting a separate 
regulatory fee category for spacecraft performing OOS and RPO, however, 
the record is insufficiently complete to justify supporting such a 
proposal. Additionally, the Commission considered assessing regulatory 
fees on RPO, OOS, and OTV space stations under other existing 
regulatory fee categories, however space stations in those categories 
are subject to a much greater regulatory burden. Therefore, the Report 
and Order finds that the purposes of section 9 of the Act would be best 
met by erring on the side of caution and assessing regulatory fees 
under the category of fees associated with the least-burdensome set of 
space

[[Page 60578]]

station regulations which would result in lower regulatory fees, and 
have less economic impact on small entities in that sector.
    The Commission considered but declined to assess regulatory fees on 
all ``ISAM space stations'' using the small satellite fee category, as 
proposed in some comments in this proceeding. In light of the current 
proceeding involving ISAM, the Commission finds it is premature to make 
a decision regarding the assessment of regulatory fees on ISAM space 
stations for which the definition and regulatory framework are still 
being considered and for which there are no applications pending or 
licenses issued. The Commission expects to revisit this issue in the 
future, after conclusion of the ISAM rulemaking, when the framework and 
expected FTE burdens for licensing and regulating ISAM space stations 
are better known. The Commission also considered the suggestion of one 
commenter that it more clearly define RPO, OOS, and OTV by their 
characteristics in order to remove uncertainty by applicants with 
regards to their expected regulatory fees. The Commission declined to 
do so at this time, because the proposed characteristics for defining 
RPO, OOS, and OTV, such as limited duration of operations, ability to 
share spectrum, and low number of stations, have not been defined in 
the Commission's rules and are outside the scope of a regulatory fee 
proceeding. The Commission also considered but declined at this time, 
to include missions involving `habitable' or `crewed' space stations in 
the existing fee category for small satellites, as proposed by one 
commenter, finding it is premature to make a decision regarding the 
assessment of regulatory fees for potential future types of space 
stations for which the FTE benefits are not reasonably known and for 
which there are no applications pending or licenses issued.

Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer.
[FR Doc. 2024-16348 Filed 7-25-24; 8:45 am]
BILLING CODE 6712-01-P