SAN FRANCISCO — The U.S. Federal Aviation Administration (FAA) is requesting funding in the 2012 budget to offer a $5 million prize to encourage development projects aimed at providing low-cost space transportation.

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Debra Werner is a correspondent for SpaceNews based in San Francisco. Debra earned a bachelor’s degree in communications from the University of California, Berkeley, and a master’s degree in Journalism from Northwestern University. She is a recipient...