An FAA license is required to conduct any commercial launch or reentry, the operation of any launch or reentry site by U.S. citizens anywhere in the world, or by any individual or entity within the United States. However, an FAA license is not required for a space-related activity the government carries out for the government, such as some NASA or Department of Defense launches.
The video also goes through the pre-application process, where the FAA sits down with potential commercial space operators to discuss what licensing requirements applicants might need to conduct their specific space-related activity.
Once the FAA issues a license or permit, the agency works with operators to make sure they are meeting the requirements to conduct launches and reentries. This includes having FAA safety inspectors monitor licensed activities. However, as a federal regulator the FAA has the authority to suspend or revoke any license or issue fines when a commercial space operator is not in compliance with statutory or regulatory requirements.
So, if you are thinking about obtaining a license from the FAA Office of Commercial Space Transportation, please view the video. You also may find additional information in the PowerPoint presentation associated with video and the fact sheet.