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The Federal Aviation Administration in their new “Requirements for Amateur Rocket Activities Final Rule, December 4, 2008″ have revised the rules that govern amateur rocketry in the US. Amateur does not refer to the person, it refers to the rocket and these rules apply to model hobbyist as well as rocket professionals.

Let’s first look at what the FAA defines as an amateur rocket.  Let’s compare:

Old Rules

Model Rockets:
• Uses no more than 4 ounces (113.5 grams) of propellant
• Uses a slow-burning propellant
• Is made of paper, wood, or breakable plastic
• Contains no substantial metal parts
• Weighs no more than 454 grams (16 ounces), including the pro-
pellant.
Large Model Rockets:
• Uses no more than 125 grams (4.4 ounces) of propellant.
• Uses a slow-burning propellant.
• Is made of paper, wood, or breakable plastic.
• Contains no substantial metal parts.
• Weighs no more than 1,500 grams (53 ounces) including propel-
lant.
Other:
• Undefined—every unmanned rocket other than a model or large
model rocket.

New Rules

Class  1—Model Rockets:
•  Uses no more than 125 grams (4.4 ounces) of propellant.
•  Uses a slow-burning propellant.
•  Is made of paper, wood, or breakable plastic.
•  Contains no substantial metal parts.
•  Weighs no more than 1,500 grams (53 ounces) including propel-
lant.
Class 2—High-Power Rockets:
• A rocket other than a Class 1, propelled by a rocket motor or
motors having a combined total impulse of 40,960 N-sec (9,208
lb-sec) or less.
Class 3—Advanced High-Power Rockets:
• Any amateur rocket other than a Class 1 or 2.
Other:
• Any unmanned rocket that is not an amateur rocket.

Other items in Ruling

• Definition of classes for amateur
   rockets;
• Prohibition of amateur rocket
   activities within 5 miles of an airport;
• Separation distances from amateur
   rocket activities and participants, and
   persons or property not associated with
   the activities;
• Need for the presence of someone at
   least 18 years old;
• Need to take measures to control
   any fire caused by amateur rocket
   activities;
• Specific information and notice
   requirements.

Read more by viewing the official FAA document

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UPDATE: Great Bloomberg article