[Congressional Record Volume 144, Number 67 (Friday, May 22, 1998)]
[Senate]
[Page S5453]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BREAUX:
  S. 2121. A bill to encourage the development of more cost effective 
commercial space launch industry in the United States, and for other 
purposes; to the Committee on Commerce, Science, and Transportation.


                space launch cost reduction act of 1998

  Mr. BREAUX. Mr. President, I take this opportunity to rise to 
introduce a piece of legislation, which I will send to the desk. It is 
called the Space Launch Cost Reduction Act of 1998.
  The commercial space launch industry is an essential part of the U.S. 
economy and opportunities for U.S. companies are growing as 
international markets expand. United States trading partners have been 
able to aggressively lower their commercial space launch prices either 
through direct cash payments for commercially targeted product 
development or with indirect benefits derived from nonmarket economy 
status. Because United States incentives for launch vehicle development 
have historically focused on civil and military rather than commercial 
use, and as a result U.S. launch costs have remained relatively high, 
the U.S. share of the world commercial market has decreased from nearly 
100% twenty years ago to approximately 40% in 1998. This is very 
serious erosion.
  The key to regaining United States leadership in the world market is 
not another massive government program, but rather provision of just 
enough government support to enable the more cost effective private 
sector to build lower-cost space launch vehicles. Private sector 
companies across the United States are already attempting to develop a 
variety of lower-cost space launch vehicles, but lack of sufficient 
private financing has proven a major obstacle, an obstacle our trading 
partners have chosen to remove by providing direct access to government 
funding. Given the unique strength of private industry in the United 
States, a more effective alternative to the approach of our trading 
partners is for the U.S. government to provide limited financial 
incentives in the form of loan guarantees, which would help qualifying 
private-sector companies secure otherwise unattainable private 
financing, while at the same time keeping government involvement at an 
absolute minimum.
  The purpose of the Space Launch Cost Reduction Act of 1998 is, 
therefore, to ensure availability of otherwise unattainable private 
sector financing for private sector development of commercial space 
launch vehicles with launch costs significantly below current levels. 
As a result, it will be possible to: increase the international 
competitiveness of the United States space industry, encourage the 
growth of space-related commerce in the United States and 
internationally, increase the number of high-value jobs in United 
States space-related industries, and reduce United States Government 
space launch expenditures.
  Commercialization of space is an issue of importance not only to our 
nation as a whole but also to the state of Louisiana. Louisiana is 
already an active participant in the American space effort. For 
example, the Michoud Facility in New Orleans has been selected as the 
fabrication center for the experimental X-33 space vehicle's liquid 
oxygen tanks. The fuel tanks for the Space Shuttle are also built at 
Michoud, and Shuttle engines are tested at the Stennis Space Center in 
neighboring Mississippi. Furthermore, NASA has entered a partnership 
with the University of Southwestern Louisiana in Lafayette to establish 
a Regional Application Center for commercial remote sensing technology. 
Looking toward the future, Louisiana is clearly well positioned to 
participate actively in the commercialization of space and to benefit 
from the Space Launch Cost Reduction Act of 1998.
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