[Congressional Record Volume 144, Number 106 (Friday, July 31, 1998)]
[Senate]
[Pages S9623-S9627]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              H.R. 1702--THE COMMERCIAL SPACE ACT OF 1997

  The text of H.R. 1702, the ``Commercial Space Act of 1997'', as 
amended, and passed by the Senate on July 30, 1998, is as follows:

       Resolved, That the bill from the House of Representatives 
     (H.R. 1702) entitled ``An Act to encourage the development of 
     a commercial space industry in the United States, and for 
     other purposes.'', do pass with the following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Commercial 
     Space Act of 1997''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

          TITLE I--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

Sec. 101. Commercialization of space station.
Sec. 102. Commercial space launch amendments.
Sec. 103. Promotion of United States Global Positioning System 
              standards.
Sec. 104. Acquisition of space science data.
Sec. 105. Administration of Commercial Space Centers.

                        TITLE II--REMOTE SENSING

Sec. 201. Land Remote Sensing Policy Act of 1992 amendments.
Sec. 202. Acquisition of earth science data.

    TITLE III--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

Sec. 301. Requirement to procure commercial space transportation 
              services.
Sec. 302. Acquisition of commercial space transportation services.
Sec. 303. Launch Services Purchase Act of 1990 amendments.
Sec. 304. Shuttle privatization.
Sec. 305. Use of excess intercontinental ballistic missiles.
Sec. 306. National launch capability study.

     SEC. 2. DEFINITIONS.

       For purposes of this Act--
       (1) the term ``Administrator'' means the Administrator of 
     the National Aeronautics and Space Administration;
       (2) the term ``commercial provider'' means any person 
     providing space transportation services or other space-
     related activities, primary control of which is held by 
     persons other than Federal, State, local, and foreign 
     governments;
       (3) the term ``payload'' means anything that a person 
     undertakes to transport to, from, or within outer space, or 
     in suborbital trajectory, by means of a space transportation 
     vehicle, but does not include the space transportation 
     vehicle itself except for its components which are 
     specifically designed or adapted for that payload;
       (4) the term ``space-related activities'' includes research 
     and development, manufacturing, processing, service, and 
     other associated and support activities;
       (5) the term ``space transportation services'' means the 
     preparation of a space transportation vehicle and its 
     payloads for transportation to, from, or within outer space, 
     or in suborbital trajectory, and the conduct of transporting 
     a payload to, from, or within outer space, or in suborbital 
     trajectory;
       (6) the term ``space transportation vehicle'' means any 
     vehicle constructed for the purpose of operating in, or 
     transporting a payload to, from, or within, outer space, or 
     in suborbital trajectory, and includes any component of such 
     vehicle not specifically designed or adapted for a payload;
       (7) the term ``State'' means each of the several States of 
     the Union, the District of Columbia, the Commonwealth of 
     Puerto Rico, the Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, and any other 
     commonwealth, territory, or possession of the United States; 
     and
       (8) the term ``United States commercial provider'' means a 
     commercial provider, organized under the laws of the United 
     States or of a State, which is--
       (A) more than 50 percent owned by United States nationals; 
     or
       (B) a subsidiary of a foreign company and the Secretary of 
     Transportation finds that--
       (i) such subsidiary has in the past evidenced a substantial 
     commitment to the United States market through--

       (I) investments in the United States in long-term research, 
     development, and manufacturing (including the manufacture of 
     major components and subassemblies); and
       (II) significant contributions to employment in the United 
     States; and

       (ii) the country or countries in which such foreign company 
     is incorporated or organized, and, if appropriate, in which 
     it principally conducts its business, affords reciprocal 
     treatment to companies described in subparagraph (A) 
     comparable to that afforded to such foreign company's 
     subsidiary in the United States, as evidenced by--

       (I) providing comparable opportunities for companies 
     described in subparagraph (A) to participate in Government 
     sponsored research and development similar to that authorized 
     under this Act;
       (II) providing no barriers, to companies described in 
     subparagraph (A) with respect to local investment 
     opportunities, that are not provided to foreign companies in 
     the United States; and
       (III) providing adequate and effective protection for the 
     intellectual property rights of companies described in 
     subparagraph (A).

          TITLE I--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

     SEC. 101. COMMERCIALIZATION OF SPACE STATION.

       (a) Policy.--The Congress declares that a priority goal of 
     constructing the International Space Station is the economic 
     development of Earth orbital space. The Congress further 
     declares that free and competitive markets create the most 
     efficient conditions for promoting economic development, and 
     should therefore govern the economic development of Earth 
     orbital space. The Congress further declares that the use of 
     free market principles in operating, servicing, allocating 
     the use of, and adding capabilities to the Space Station, and 
     the resulting fullest possible engagement of commercial 
     providers and participation of commercial users, will reduce 
     Space Station operational costs for all partners and the 
     Federal Government's share of the United States burden to 
     fund operations.
       (b) Reports.--(1) The Administrator shall deliver to the 
     Committee on Science of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation of the 
     Senate, within 90 days after the date of the enactment of 
     this Act, a study that identifies and examines--
       (A) the opportunities for commercial providers to play a 
     role in International Space Station activities, including 
     operation, use, servicing, and augmentation;
       (B) the potential cost savings to be derived from 
     commercial providers playing a role in each of these 
     activities;
       (C) which of the opportunities described in subparagraph 
     (A) the Administrator plans to make available to commercial 
     providers in fiscal year 1999 and 2000;
       (D) the specific policies and initiatives the Administrator 
     is advancing to encourage and facilitate these commercial 
     opportunities; and
       (E) the revenues and cost reimbursements to the Federal 
     Government from commercial users of the Space Station.
       (2) The Administrator shall deliver to the Committee on 
     Science of the House of Representatives and the Committee on 
     Commerce, Science, and Transportation of the Senate, within 
     180 days after the date of the enactment of this Act, an 
     independently-conducted market study that examines and 
     evaluates potential industry interest in providing commercial 
     goods and services for the operation, servicing, and 
     augmentation of the International Space Station, and in the 
     commercial use of the International Space Station. This study 
     shall also include updates to the cost savings and revenue 
     estimates made in the study described in paragraph (1) based 
     on the external market assessment.
       (3) The Administrator shall deliver to the Congress, no 
     later than the submission of the President's annual budget 
     request for fiscal year 2000, a report detailing how many 
     proposals (whether solicited or not) the National Aeronautics 
     and Space Administration received during calendar year 1998 
     regarding commercial operation, servicing, utilization, or 
     augmentation of the International Space Station, broken down 
     by each of these four categories, and specifying how many 
     agreements the National Aeronautics and Space Administration 
     has entered into in response to these proposals, also broken 
     down by these four categories.
       (4) Each of the studies and reports required by paragraphs 
     (1), (2), and (3) shall include consideration of the 
     potential role of State governments as brokers in promoting 
     commercial participation in the International Space Station 
     program.

     SEC. 102. COMMERCIAL SPACE LAUNCH AMENDMENTS.

       (a) Amendments.--Chapter 701 of title 49, United States 
     Code, is amended--
       (1) in the table of sections--
       (A) by amending the item relating to section 70104 to read 
     as follows:

``70104. Restrictions on launches, operations, and reentries.'';

       (B) by amending the item relating to section 70108 to read 
     as follows:

``70108. Prohibition, suspension, and end of launches, operation of 
              launch sites and reentry sites, and reentries.'';

       (C) by amending the item relating to section 70109 to read 
     as follows:

``70109. Preemption of scheduled launches or reentries.'';

     and
       (D) by adding at the end the following new items:

``70120. Regulations.
``70121. Report to Congress.''.

       (2) in section 70101--
       (A) by inserting ``microgravity research,'' after 
     ``information services,'' in subsection (a)(3);
       (B) by inserting ``, reentry,'' after ``launching'' both 
     places it appears in subsection (a)(4);
       (C) by inserting ``, reentry vehicles,'' after ``launch 
     vehicles'' in subsection (a)(5);

[[Page S9624]]

       (D) by inserting ``and reentry services'' after ``launch 
     services'' in subsection (a)(6);
       (E) by inserting ``, reentries,'' after ``launches'' both 
     places it appears in subsection (a)(7);
       (F) by inserting ``, reentry sites,'' after ``launch 
     sites'' in subsection (a)(8);
       (G) by inserting ``and reentry services'' after ``launch 
     services'' in subsection (a)(8);
       (H) by inserting ``reentry sites,'' after ``launch sites,'' 
     in subsection (a)(9);
       (I) by inserting ``and reentry site'' after ``launch site'' 
     in subsection (a)(9);
       (J) by inserting ``, reentry vehicles,'' after ``launch 
     vehicles'' in subsection (b)(2);
       (K) by striking ``launch'' in subsection (b)(2)(A);
       (L) by inserting ``and reentry'' after ``conduct of 
     commercial launch'' in subsection (b)(3);
       (M) by striking ``launch'' after ``and transfer 
     commercial'' in subsection (b)(3); and
       (N) by inserting ``and development of reentry sites,'' 
     after ``launch-site support facilities,'' in subsection 
     (b)(4);
       (3) in section 70102--
       (A) in paragraph (3)--
       (i) by striking ``and any payload'' and inserting in lieu 
     thereof ``or reentry vehicle and any payload from Earth'';
       (ii) by striking the period at the end of subparagraph (C) 
     and inserting in lieu thereof a comma; and
       (iii) by adding after subparagraph (C) the following:

     ``including activities involved in the preparation of a 
     launch vehicle or payload for launch, when those activities 
     take place at a launch site in the United States.'';
       (B) by inserting ``or reentry vehicle'' after ``means of a 
     launch vehicle'' in paragraph (8);
       (C) by redesignating paragraphs (10), (11), and (12) as 
     paragraphs (14), (15), and (16), respectively;
       (D) by inserting after paragraph (10) the following new 
     paragraphs:
       ``(10) `reenter' and `reentry' mean to return or attempt to 
     return a reentry vehicle and its payload, if any, from Earth 
     orbit or from outer space to Earth.
       ``(11) `reentry services' means--
       ``(A) activities involved in the preparation of a reentry 
     vehicle and its payload, if any, for reentry; and
       ``(B) the conduct of a reentry.
       ``(12) `reentry site' means the location on Earth to which 
     a reentry vehicle is intended to return (as defined in a 
     license the Secretary issues or transfers under this 
     chapter).
       ``(13) `reentry vehicle' means a vehicle designed to return 
     from Earth orbit or outer space to Earth, or a reusable 
     launch vehicle designed to return from Earth orbit or outer 
     space to Earth, substantially intact.''; and
       (E) by inserting ``or reentry services'' after ``launch 
     services'' each place it appears in paragraph (15), as so 
     redesignated by subparagraph (C) of this paragraph;
       (4) in section 70103(b)--
       (A) by inserting ``and Reentries'' after ``Launches'' in 
     the subsection heading;
       (B) by inserting ``and reentries'' after ``commercial space 
     launches'' in paragraph (1); and
       (C) by inserting ``and reentry'' after ``space launch'' in 
     paragraph (2);
       (5) in section 70104--
       (A) by amending the section designation and heading to read 
     as follows:

     ``Sec. 70104. Restrictions on launches, operations, and 
       reentries'';

       (B) by inserting ``or reentry site, or to reenter a reentry 
     vehicle,'' after ``operate a launch site'' each place it 
     appears in subsection (a);
       (C) by inserting ``or reentry'' after ``launch or 
     operation'' in subsection (a)(3) and (4);
       (D) in subsection (b)--
       (i) by striking ``launch license'' and inserting in lieu 
     thereof ``license'';
       (ii) by inserting ``or reenter'' after ``may launch''; and
       (iii) by inserting ``or reentering'' after ``related to 
     launching''; and
       (E) in subsection (c)--
       (i) by amending the subsection heading to read as follows: 
     ``Preventing Launches and Reentries.--'';
       (ii) by inserting ``or reentry'' after ``prevent the 
     launch''; and
       (iii) by inserting ``or reentry'' after ``decides the 
     launch'';
       (6) in section 70105--
       (A) by inserting ``(1)'' before ``A person may apply'' in 
     subsection (a);
       (B) by striking ``receiving an application'' both places it 
     appears in subsection (a) and inserting in lieu thereof 
     ``accepting an application in accordance with criteria 
     established pursuant to subsection (b)(2)(D)'';
       (C) by adding at the end of subsection (a) the following: 
     ``The Secretary shall transmit to the Committee on Science of 
     the House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate a written notice 
     not later than 30 days after any occurrence when a license is 
     not issued within the deadline established by this 
     subsection.
       ``(2) In carrying out paragraph (1), the Secretary may 
     establish procedures for safety approvals of launch vehicles, 
     reentry vehicles, safety systems, processes, services, or 
     personnel that may be used in conducting licensed commercial 
     space launch or reentry activities.'';
       (D) by inserting ``or a reentry site, or the reentry of a 
     reentry vehicle,'' after ``operation of a launch site'' in 
     subsection (b)(1);
       (E) by striking ``or operation'' and inserting in lieu 
     thereof ``, operation, or reentry'' in subsection (b)(2)(A);
       (F) by striking ``and'' at the end of subsection (b)(2)(B);
       (G) by striking the period at the end of subsection 
     (b)(2)(C) and inserting in lieu thereof ``; and'';
       (H) by adding at the end of subsection (b)(2) the following 
     new subparagraph:
       ``(D) regulations establishing criteria for accepting or 
     rejecting an application for a license under this chapter 
     within 60 days after receipt of such application.''; and
       (I) by inserting ``, including the requirement to obtain a 
     license,'' after ``waive a requirement'' in subsection 
     (b)(3);
       (7) in section 70106(a)--
       (A) by inserting ``or reentry site'' after ``observer at a 
     launch site'';
       (B) by inserting ``or reentry vehicle'' after ``assemble a 
     launch vehicle''; and
       (C) by inserting ``or reentry vehicle'' after ``with a 
     launch vehicle'';
       (8) in section 70108--
       (A) by amending the section designation and heading to read 
     as follows:

     ``Sec. 70108. Prohibition, suspension, and end of launches, 
       operation of launch sites and reentry sites, and 
       reentries'';

     and
       (B) in subsection (a)--
       (i) by inserting ``or reentry site, or reentry of a reentry 
     vehicle,'' after ``operation of a launch site''; and
       (ii) by inserting ``or reentry'' after ``launch or 
     operation'';
       (9) in section 70109--
       (A) by amending the section designation and heading to read 
     as follows:

     ``Sec. 70109. Preemption of scheduled launches or 
       reentries'';

       (B) in subsection (a)--
       (i) by inserting ``or reentry'' after ``ensure that a 
     launch'';
       (ii) by inserting ``, reentry site,'' after ``United States 
     Government launch site'';
       (iii) by inserting ``or reentry date commitment'' after 
     ``launch date commitment'';
       (iv) by inserting ``or reentry'' after ``obtained for a 
     launch'';
       (v) by inserting ``, reentry site,'' after ``access to a 
     launch site'';
       (vi) by inserting ``, or services related to a reentry,'' 
     after ``amount for launch services''; and
       (vii) by inserting ``or reentry'' after ``the scheduled 
     launch''; and
       (C) in subsection (c), by inserting ``or reentry'' after 
     ``prompt launching'';
       (10) in section 70110--
       (A) by inserting ``or reentry'' after ``prevent the 
     launch'' in subsection (a)(2); and
       (B) by inserting ``or reentry site, or reentry of a reentry 
     vehicle,'' after ``operation of a launch site'' in subsection 
     (a)(3)(B);
       (11) in section 70111--
       (A) by inserting ``or reentry'' after ``launch'' in 
     subsection (a)(1)(A);
       (B) by inserting ``and reentry services'' after ``launch 
     services'' in subsection (a)(1)(B);
       (C) by inserting ``or reentry services'' after ``or launch 
     services'' in subsection (a)(2);
       (D) by striking ``source.'' in subsection (a)(2) and 
     inserting ``source, whether such source is located on or off 
     a Federal range.'';
       (E) by inserting ``or reentry'' after ``commercial launch'' 
     both places it appears in subsection (b)(1);
       (F) by inserting ``or reentry services'' after ``launch 
     services'' in subsection (b)(2)(C);
       (G) by inserting after subsection (b)(2) the following new 
     paragraph:
       ``(3) The Secretary shall ensure the establishment of 
     uniform guidelines for, and consistent implementation of, 
     this section by all Federal agencies.'';
       (H) by striking ``or its payload for launch'' in subsection 
     (d) and inserting in lieu thereof ``or reentry vehicle, or 
     the payload of either, for launch or reentry''; and
       (I) by inserting ``, reentry vehicle,'' after 
     ``manufacturer of the launch vehicle'' in subsection (d);
       (12) in section 70112--
       (A) in subsection (a)(1), by inserting ``launch or 
     reentry'' after ``(1) When a'';
       (B) by inserting ``or reentry'' after ``one launch'' in 
     subsection (a)(3);
       (C) by inserting ``or reentry services'' after ``launch 
     services'' in subsection (a)(4);
       (D) in subsection (b)(1), by inserting ``launch or 
     reentry'' after ``(1) A'';
       (E) by inserting ``or reentry services'' after ``launch 
     services'' each place it appears in subsection (b);
       (F) by inserting ``applicable'' after ``carried out under 
     the'' in paragraphs (1) and (2) of subsection (b);
       (G) by striking ``, Space, and Technology'' in subsection 
     (d)(1);
       (H) by inserting ``or Reentries'' after ``Launches'' in the 
     heading for subsection (e);
       (I) by inserting ``or reentry site or a reentry'' after 
     ``launch site'' in subsection (e); and
       (J) in subsection (f), by inserting ``launch or reentry'' 
     after ``carried out under a'';
       (13) in section 70113--by inserting ``or reentry'' after 
     ``one launch'' each place it appears in paragraphs (1) and 
     (2) of subsection (d);
       (14) in section 70115(b)(1)(D)(i)--
       (A) by inserting ``reentry site,'' after ``launch site,''; 
     and
       (B) by inserting ``or reentry vehicle'' after ``launch 
     vehicle'' both places it appears;
       (15) in section 70117--
       (A) by inserting ``or reentry site, or to reenter a reentry 
     vehicle'' after ``operate a launch site'' in subsection (a);
       (B) by inserting ``or reentry'' after ``approval of a space 
     launch'' in subsection (d);
       (C) by amending subsection (f) to read as follows:
       ``(f) Launch Not an Export; Reentry Not an Import.--A 
     launch vehicle, reentry vehicle, or payload that is launched 
     or reentered is not, because of the launch or reentry, an 
     export or import, respectively, for purposes of a law 
     controlling exports or imports, except that payloads launched 
     pursuant to foreign trade zone procedures as provided for 
     under the Foreign Trade

[[Page S9625]]

     Zones Act (19 U.S.C. 81a-81u) shall be considered exports 
     with regard to customs entry.''; and
       (D) in subsection (g)--
       (i) by striking ``operation of a launch vehicle or launch 
     site,'' in paragraph (1) and inserting in lieu thereof 
     ``reentry, operation of a launch vehicle or reentry vehicle, 
     or operation of a launch site or reentry site,''; and
       (ii) by inserting ``reentry,'' after ``launch,'' in 
     paragraph (2); and
       (16) by adding at the end the following new sections:

     ``Sec. 70120. Regulations

       ``(a) In General.--The Secretary of Transportation, within 
     9 months after the date of the enactment of this section, 
     shall issue regulations to carry out this chapter that 
     include--
       ``(1) guidelines for industry and State governments to 
     obtain sufficient insurance coverage for potential damages to 
     third parties;
       ``(2) procedures for requesting and obtaining licenses to 
     launch a commercial launch vehicle;
       ``(3) procedures for requesting and obtaining operator 
     licenses for launch;
       ``(4) procedures for requesting and obtaining launch site 
     operator licenses; and
       ``(5) procedures for the application of government 
     indemnification.
       ``(b) Reentry.--The Secretary of Transportation, within 6 
     months after the date of the enactment of this section, shall 
     issue a notice of proposed rulemaking to carry out this 
     chapter that includes--
       ``(1) procedures for requesting and obtaining licenses to 
     reenter a reentry vehicle;
       ``(2) procedures for requesting and obtaining operator 
     licenses for reentry; and
       ``(3) procedures for requesting and obtaining reentry site 
     operator licenses.

     ``Sec. 70121. Report to Congress

       ``The Secretary of Transportation shall submit to Congress 
     an annual report to accompany the President's budget request 
     that--
       ``(1) describes all activities undertaken under this 
     chapter, including a description of the process for the 
     application for and approval of licenses under this chapter 
     and recommendations for legislation that may further 
     commercial launches and reentries; and
       ``(2) reviews the performance of the regulatory activities 
     and the effectiveness of the Office of Commercial Space 
     Transportation.''.
       (b) Authorization of Appropriations.--Section 70119 of 
     title 49, United States Code, is amended to read as follows:

     ``Sec. 70119. Authorization of appropriations

       ``There are authorized to be appropriated to the Secretary 
     of Transportation for the activities of the Office of the 
     Associate Administrator for Commercial Space Transportation--
       ``(1) $6,182,000 for the fiscal year ending September 30, 
     1998;
       ``(2) $6,275,000 for the fiscal year ending September 30, 
     1999; and
       ``(3) $6,600,000 for the fiscal year ending September 30, 
     2000.''.
       (c) Effective Date.--The amendments made by subsection 
     (a)(6)(B) shall take effect upon the effective date of final 
     regulations issued pursuant to section 70105(b)(2)(D) of 
     title 49, United States Code, as added by subsection 
     (a)(6)(H).

     SEC. 103. PROMOTION OF UNITED STATES GLOBAL POSITIONING 
                   SYSTEM STANDARDS.

       (a) Finding.--The Congress finds that the Global 
     Positioning System, including satellites, signal equipment, 
     ground stations, data links, and associated command and 
     control facilities, has become an essential element in civil, 
     scientific, and military space development because of the 
     emergence of a United States commercial industry which 
     provides Global Positioning System equipment and related 
     services.
       (b) International Cooperation.--In order to support and 
     sustain the Global Positioning System in a manner that will 
     most effectively contribute to the national security, public 
     safety, scientific, and economic interests of the United 
     States, the Congress encourages the President to--
       (1) ensure the operation of the Global Positioning System 
     on a continuous worldwide basis free of direct user fees;
       (2) enter into international agreements that promote 
     cooperation with foreign governments and international 
     organizations to--
       (A) establish the Global Positioning System and its 
     augmentations as an acceptable international standard; and
       (B) eliminate any foreign barriers to applications of the 
     Global Positioning System worldwide; and
       (3) provide clear direction and adequate resources to 
     United States representatives so that on an international 
     basis they can--
       (A) achieve and sustain efficient management of the 
     electromagnetic spectrum used by the Global Positioning 
     System; and
       (B) protect that spectrum from disruption and interference.

     SEC. 104. ACQUISITION OF SPACE SCIENCE DATA.

       (a) Acquisition From Commercial Providers.--In order to 
     satisfy the scientific and educational requirements of the 
     National Aeronautics and Space Administration, and where 
     practicable of other Federal agencies and scientific 
     researchers, the Administrator shall to the maximum extent 
     possible acquire, where cost effective, space science data 
     from a commercial provider.
       (b) Treatment of Space Science Data as Commercial Item 
     Under Acquisition Laws.--Acquisitions of space science data 
     by the Administrator shall be carried out in accordance with 
     applicable acquisition laws and regulations (including 
     chapters 137 and 140 of title 10, United States Code), except 
     that space science data shall be considered to be a 
     commercial item for purposes of such laws and regulations. 
     Nothing in this subsection shall be construed to preclude the 
     United States from acquiring sufficient rights in data to 
     meet the needs of the scientific and educational community or 
     the needs of other government activities.
       (c) Definition.--For purposes of this section, the term 
     ``space science data'' includes scientific data concerning 
     the elemental and mineralogical resources of the moon, 
     asteroids, planets and their moons, and comets, microgravity 
     acceleration, and solar storm monitoring.
       (d) Safety Standards.--Nothing in this section shall be 
     construed to prohibit the Federal Government from requiring 
     compliance with applicable safety standards.
       (e) Limitation.--This section does not authorize the 
     National Aeronautics and Space Administration to provide 
     financial assistance for the development of commercial 
     systems for the collection of space science data.

     SEC. 105. ADMINISTRATION OF COMMERCIAL SPACE CENTERS.

       The Administrator shall administer the Commercial Space 
     Center program in a coordinated manner from National 
     Aeronautics and Space Administration headquarters in 
     Washington, D.C.

                        TITLE II--REMOTE SENSING

     SEC. 201. LAND REMOTE SENSING POLICY ACT OF 1992 AMENDMENTS.

       (a) Findings.--The Congress finds that--
       (1) a robust domestic United States industry in high 
     resolution Earth remote sensing is in the economic, 
     employment, technological, scientific, and national security 
     interests of the United States;
       (2) to secure its national interests the United States must 
     nurture a commercial remote sensing industry that leads the 
     world;
       (3) the Federal Government must provide policy and 
     regulations that promote a stable business environment for 
     that industry to succeed and fulfill the national interest;
       (4) it is the responsibility of the Federal Government to 
     create domestic and international conditions favorable to the 
     health and growth of the United States commercial remote 
     sensing industry;
       (5) it is a fundamental goal of United States policy to 
     support and enhance United States industrial competitiveness 
     in the field of remote sensing, while at the same time 
     protecting the national security concerns and international 
     obligations of the United States; and
       (6) it is fundamental that the states be able to deploy and 
     utilize this technology in their land management 
     responsibilities. To date, very few states have the ability 
     to do so without engaging the academic institutions within 
     their boundaries. In order to develop a market for the 
     commercial sector, the states must have the capacity to fully 
     utilize the technology.
       (b) Amendments.--The Land Remote Sensing Policy Act of 1992 
     is amended--
       (1) in section 2 (15 U.S.C. 5601)--
       (A) by amending paragraph (5) to read as follows:
       ``(5) Commercialization of land remote sensing is a near-
     term goal, and should remain a long-term goal, of United 
     States policy.'';
       (B) by striking paragraph (6) and redesignating paragraphs 
     (7) through (16) as paragraphs (6) through (15), 
     respectively;
       (C) in paragraph (11), as so redesignated by subparagraph 
     (B) of this paragraph, by striking ``determining the design'' 
     and all that follows through ``international consortium'' and 
     inserting in lieu thereof ``ensuring the continuity of 
     Landsat quality data''; and
       (D) by adding at the end the following new paragraphs:
       ``(16) The United States should encourage remote sensing 
     systems to promote access to land remote sensing data by 
     scientific researchers and educators.
       ``(17) It is in the best interest of the United States to 
     encourage remote sensing systems whether privately-funded or 
     publicly-funded, to promote widespread affordable access to 
     unenhanced land remote sensing data by scientific researchers 
     and educators and to allow such users appropriate rights for 
     redistribution for scientific and educational noncommercial 
     purposes.'';
       (2) in section 101 (15 U.S.C. 5611)--
       (A) in subsection (c)--
       (i) by inserting ``and'' at the end of paragraph (6);
       (ii) by striking paragraph (7); and
       (iii) by redesignating paragraph (8) as paragraph (7); and
       (B) in subsection (e)(1)--
       (i) by inserting ``and'' at the end of subparagraph (A);
       (ii) by striking ``, and'' at the end of subparagraph (B) 
     and inserting in lieu thereof a period; and
       (iii) by striking subparagraph (C);
       (3) in section 201 (15 U.S.C. 5621)--
       (A) by inserting ``(1)'' after ``National Security.--'' in 
     subsection (b);
       (B) in subsection (b)(1), as so redesignated by 
     subparagraph (A) of this paragraph--
       (i) by striking ``No license shall be granted by the 
     Secretary unless the Secretary determines in writing that the 
     applicant will comply'' and inserting in lieu thereof ``The 
     Secretary shall grant a license if the Secretary determines 
     that the activities proposed in the application are 
     consistent'';
       (ii) by inserting ``, and that the applicant has provided 
     assurances adequate to indicate, in combination with other 
     information available to the Secretary that is relevant to 
     activities proposed in the application, that the applicant 
     will comply with all terms of the license'' after ``concerns 
     of the United States''; and
       (iii) by inserting ``and policies'' after ``international 
     obligations'';
       (C) by adding at the end of subsection (b) the following 
     new paragraph:

[[Page S9626]]

       ``(2) The Secretary, within 6 months after the date of the 
     enactment of the Commercial Space Act of 1997, shall publish 
     in the Federal Register a complete and specific list of all 
     information required to comprise a complete application for a 
     license under this title. An application shall be considered 
     complete when the applicant has provided all information 
     required by the list most recently published in the Federal 
     Register before the date the application was first submitted. 
     Unless the Secretary has, within 30 days after receipt of an 
     application, notified the applicant of information necessary 
     to complete an application, the Secretary may not deny the 
     application on the basis of the absence of any such 
     information.''; and
       (D) in subsection (c), by amending the second sentence 
     thereof to read as follows: ``If the Secretary has not 
     granted the license within such 120-day period, the Secretary 
     shall inform the applicant, within such period, of any 
     pending issues and actions required to be carried out by the 
     applicant or the Secretary in order to result in the granting 
     of a license.'';
       (4) in section 202 (15 U.S.C. 5622)--
       (A) by striking ``section 506'' in subsection (b)(1) and 
     inserting in lieu thereof ``section 507'';
       (B) in subsection (b)(2), by striking ``as soon as such 
     data are available and on reasonable terms and conditions'' 
     and inserting in lieu thereof ``on reasonable terms and 
     conditions, including the provision of such data in a timely 
     manner subject to United States national security and foreign 
     policy interests'';
       (C) in subsection (b)(6), by striking ``any agreement'' and 
     all that follows through ``nations or entities'' and 
     inserting in lieu thereof ``any significant or substantial 
     agreement''; and
       (D) by inserting after paragraph (6) of subsection (b) the 
     following:

     ``The Secretary may not seek to enjoin a company from 
     entering into a foreign agreement the Secretary receives 
     notification of under paragraph (6) unless the Secretary has, 
     within 30 days after receipt of such notification, 
     transmitted to the licensee a statement that such agreement 
     is inconsistent with the national security, foreign policy, 
     or international obligations of the United States, including 
     an explanation of such inconsistency.'';
       (5) in section 203(a)(2) (15 U.S.C. 5623(a)(2)), by 
     striking ``under this title and'' and inserting in lieu 
     thereof ``under this title or'';
       (6) in section 204 (15 U.S.C. 5624), by striking ``may'' 
     and inserting in lieu thereof ``shall'';
       (7) in section 205(c) (15 U.S.C. 5625(c)), by striking ``if 
     such remote sensing space system is licensed by the Secretary 
     before commencing operation'' and inserting in lieu thereof 
     ``if such private remote sensing space system will be 
     licensed by the Secretary before commencing its commercial 
     operation'';
       (8) by adding at the end of title II the following new 
     section:

     ``SEC. 206. NOTIFICATION.

       ``(a) Limitations on Licensee.--Not later than 30 days 
     after a determination by the Secretary to require a licensee 
     to limit collection or distribution of data from a system 
     licensed under this title, the Secretary shall provide 
     written notification to Congress of such determination, 
     including the reasons therefor, the limitations imposed on 
     the licensee, and the period during which such limitations 
     apply.
       ``(b) Termination, Modification, or Suspension.--Not later 
     than 30 days after an action by the Secretary to seek an 
     order of injunction or other judicial determination pursuant 
     to section 202(b) or section 203(a)(2), the Secretary shall 
     provide written notification to Congress of such action and 
     the reasons therefor.'';
       (9) in section 301 (15 U.S.C. 5631)--
       (A) by inserting ``, that are not being commercially 
     developed'' after ``and its environment'' in subsection 
     (a)(2)(B); and
       (B) by adding at the end the following new subsection:
       ``(d) Duplication of Commercial Sector Activities.--The 
     Federal Government shall not undertake activities under this 
     section which duplicate activities available from the United 
     States commercial sector, unless such activities would result 
     in significant cost savings to the Federal Government, or are 
     necessary for reasons of national security or international 
     obligations or policies.'';
       (10) in section 302 (15 U.S.C. 5632)--
       (A) by striking ``(a) General Rule.--'';
       (B) by striking ``, including unenhanced data gathered 
     under the technology demonstration program carried out 
     pursuant to section 303,''; and
       (C) by striking subsection (b);
       (11) by repealing section 303 (15 U.S.C. 5633);
       (12) in section 401(b)(3) (15 U.S.C. 5641(b)(3)), by 
     striking ``, including any such enhancements developed under 
     the technology demonstration program under section 303,'';
       (13) in section 501(a) (15 U.S.C. 5651(a)), by striking 
     ``section 506'' and inserting in lieu thereof ``section 
     507'';
       (14) in section 502(c)(7) (15 U.S.C. 5652(c)(7)), by 
     striking ``section 506'' and inserting in lieu thereof 
     ``section 507''; and
       (15) in section 507 (15 U.S.C. 5657)--
       (A) by amending subsection (a) to read as follows:
       ``(a) Responsibility of the Secretary of Defense.--The 
     Secretary shall consult with the Secretary of Defense on all 
     matters under title II affecting national security. The 
     Secretary of Defense shall be responsible for determining 
     those conditions, consistent with this Act, necessary to meet 
     national security concerns of the United States, and for 
     notifying the Secretary promptly of such conditions. The 
     Secretary of Defense shall convey to the Secretary the 
     determinations for a license issued under title II, 
     consistent with this Act, that the Secretary of Defense 
     determines necessary to meet the national security concerns 
     of the United States.'';
       (B) by striking subsection (b)(1) and (2) and inserting in 
     lieu thereof the following:
       ``(b) Responsibility of the Secretary of State.--(1) The 
     Secretary shall consult with the Secretary of State on all 
     matters under title II affecting international obligations 
     and policies of the United States. The Secretary of State 
     shall be responsible for determining those conditions, 
     consistent with this Act, necessary to meet international 
     obligations and policies of the United States and for 
     notifying the Secretary promptly of such conditions. The 
     Secretary of State shall convey to the Secretary the 
     determinations for a license issued under title II, 
     consistent with this Act, that the Secretary of State 
     determines necessary to meet the international obligations 
     and policies of the United States.
       ``(2) Appropriate United States Government agencies are 
     authorized and encouraged to provide to developing nations, 
     as a component of international aid, resources for purchasing 
     remote sensing data, training, and analysis from commercial 
     providers. National Aeronautics and Space Administration, 
     United States Geological Survey, and National Oceanic and 
     Atmospheric Administration should develop and implement a 
     program to aid the transfer of remote sensing technology and 
     Mission to Planet Earth (OES) science at the state level''; 
     and
       (C) in subsection (d), by striking ``Secretary may 
     require'' and inserting in lieu thereof ``Secretary shall, 
     where appropriate, require''.

     SEC. 202. ACQUISITION OF EARTH SCIENCE DATA.

       (a) Acquisition.--For purposes of meeting Government goals 
     for Mission to Planet Earth, and in order to satisfy the 
     scientific and educational requirements of the National 
     Aeronautics and Space Administration, and where appropriate 
     of other Federal agencies and scientific researchers, the 
     Administrator shall to the maximum extent possible acquire, 
     where cost-effective, space-based and airborne Earth remote 
     sensing data, services, distribution, and applications from a 
     commercial provider.
       (b) Treatment as Commercial Item Under Acquisition Laws.--
     Acquisitions by the Administrator of the data, services, 
     distribution, and applications referred to in subsection (a) 
     shall be carried out in accordance with applicable 
     acquisition laws and regulations (including chapters 137 and 
     140 of title 10, United States Code), except that such data, 
     services, distribution, and applications shall be considered 
     to be a commercial item for purposes of such laws and 
     regulations. Nothing in this subsection shall be construed to 
     preclude the United States from acquiring sufficient rights 
     in data to meet the needs of the scientific and educational 
     community or the needs of other government activities.
       (c) Safety Standards.--Nothing in this section shall be 
     construed to prohibit the Federal Government from requiring 
     compliance with applicable safety standards.
       (d) Administration and Execution.--This section shall be 
     carried out as part of the Commercial Remote Sensing Program 
     at the Stennis Space Center.

    TITLE III--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

     SEC. 301. REQUIREMENT TO PROCURE COMMERCIAL SPACE 
                   TRANSPORTATION SERVICES.

       (a) In General.--Except as otherwise provided in this 
     section, the Federal Government shall acquire space 
     transportation services from United States commercial 
     providers whenever such services are required in the course 
     of its activities. To the maximum extent practicable, the 
     Federal Government shall plan missions to accommodate the 
     space transportation services capabilities of United States 
     commercial providers.
       (b) Exceptions.--The Federal Government shall not be 
     required to acquire space transportation services under 
     subsection (a) if, on a case-by-case basis, the Administrator 
     or, in the case of a national security issue, the Secretary 
     of the Air Force, determines that--
       (1) a payload requires the unique capabilities of the Space 
     Shuttle;
       (2) cost effective space transportation services that meet 
     specific mission requirements would not be reasonably 
     available from United States commercial providers when 
     required;
       (3) the use of space transportation services from United 
     States commercial providers poses an unacceptable risk of 
     loss of a unique scientific opportunity;
       (4) the use of space transportation services from United 
     States commercial providers is inconsistent with national 
     security objectives;
       (5) the use of space transportation services from United 
     States commercial providers is inconsistent with foreign 
     policy purposes, or launch of the payload by a foreign entity 
     serves foreign policy purposes;
       (6) it is more cost effective to transport a payload in 
     conjunction with a test or demonstration of a space 
     transportation vehicle owned by the Federal Government; or
       (7) a payload can make use of the available cargo space on 
     a Space Shuttle mission as a secondary payload, and such 
     payload is consistent with the requirements of research, 
     development, demonstration, scientific, commercial, and 
     educational programs authorized by the Administrator.
       (c) Delayed Effect.--Subsection (a) shall not apply to 
     space transportation services and space transportation 
     vehicles acquired or owned by the Federal Government before 
     the date of the enactment of this Act, or with respect to 
     which a contract for such acquisition or ownership has been 
     entered into before such date.
       (d) Historical Purposes.--This section shall not be 
     construed to prohibit the Federal Government from acquiring, 
     owning, or maintaining space transportation vehicles solely 
     for historical display purposes.

     SEC. 302. ACQUISITION OF COMMERCIAL SPACE TRANSPORTATION 
                   SERVICES.

       (a) Treatment of Commercial Space Transportation Services 
     as Commercial Item

[[Page S9627]]

     Under Acquisition Laws.--Acquisitions of space transportation 
     services by the Federal Government shall be carried out in 
     accordance with applicable acquisition laws and regulations 
     (including chapters 137 and 140 of title 10, United States 
     Code), except that space transportation services shall be 
     considered to be a commercial item for purposes of such laws 
     and regulations.
       (b) Safety Standards.--Nothing in this section shall be 
     construed to prohibit the Federal Government from requiring 
     compliance with applicable safety standards.

     SEC. 303. LAUNCH SERVICES PURCHASE ACT OF 1990 AMENDMENTS.

       The Launch Services Purchase Act of 1990 (42 U.S.C. 2465b 
     et seq.) is amended--
       (1) by striking section 202;
       (2) in section 203--
       (A) by striking paragraphs (1) and (2); and
       (B) by redesignating paragraphs (3) and (4) as paragraphs 
     (1) and (2), respectively;
       (3) by striking sections 204 and 205; and
       (4) in section 206--
       (A) by striking ``(a) Commercial Payloads on the Space 
     Shuttle.--''; and
       (B) by striking subsection (b).

     SEC. 304. SHUTTLE PRIVATIZATION.

       (a) Policy and Preparation.--The Administrator shall 
     prepare for an orderly transition from the Federal operation, 
     or Federal management of contracted operation, of space 
     transportation systems to the Federal purchase of commercial 
     space transportation services for all nonemergency launch 
     requirements, including human, cargo, and mixed payloads. In 
     those preparations, the Administrator shall take into account 
     the need for short-term economies, as well as the goal of 
     restoring the National Aeronautics and Space Administration's 
     research focus and its mandate to promote the fullest 
     possible commercial use of space. As part of those 
     preparations, the Administrator shall plan for the potential 
     privatization of the Space Shuttle program. Such plan shall 
     keep safety and cost effectiveness as high priorities. 
     Nothing in this section shall prohibit the National 
     Aeronautics and Space Administration from studying, 
     designing, developing, or funding upgrades or modifications 
     essential to the safe and economical operation of the Space 
     Shuttle fleet.
       (b) Feasibility Study.--The Administrator shall conduct a 
     study of the feasibility of implementing the recommendation 
     of the Independent Shuttle Management Review Team that the 
     National Aeronautics and Space Administration transition 
     toward the privatization of the Space Shuttle. The study 
     shall identify, discuss, and, where possible, present options 
     for resolving, the major policy and legal issues that must be 
     addressed before the Space Shuttle is privatized, including--
       (1) whether the Federal Government or the Space Shuttle 
     contractor should own the Space Shuttle orbiters and ground 
     facilities;
       (2) whether the Federal Government should indemnify the 
     contractor for any third party liability arising from Space 
     Shuttle operations, and, if so, under what terms and 
     conditions;
       (3) whether payloads other than National Aeronautics and 
     Space Administration payloads should be allowed to be 
     launched on the Space Shuttle, how missions will be 
     prioritized, and who will decide which mission flies and 
     when;
       (4) whether commercial payloads should be allowed to be 
     launched on the Space Shuttle and whether any classes of 
     payloads should be made ineligible for launch consideration;
       (5) whether National Aeronautics and Space Administration 
     and other Federal Government payloads should have priority 
     over non-Federal payloads in the Space Shuttle launch 
     assignments, and what policies should be developed to 
     prioritize among payloads generally;
       (6) whether the public interest requires that certain Space 
     Shuttle functions continue to be performed by the Federal 
     Government; and
       (7) how much cost savings, if any, will be generated by 
     privatization of the Space Shuttle.
       (c) Report to Congress.--Within 60 days after the date of 
     the enactment of this Act, the National Aeronautics and Space 
     Administration shall complete the study required under 
     subsection (b) and shall submit a report on the study to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Science of the House of 
     Representatives.

     SEC. 305. USE OF EXCESS INTERCONTINENTAL BALLISTIC MISSILES.

       (a) In general.--The Federal Government shall not--
       (1) convert any missile described in subsection (c) to a 
     space transportation vehicle configuration or otherwise use 
     any such missile to place a payload in space; or
       (2) transfer ownership of any such missile to another 
     person, except as provided in subsection (b).
       (b) Authorized Federal Uses.--
       (1) A missile described in subsection (c) may be converted 
     for use as a space transportation vehicle by the Federal 
     Government if, except as provided in paragraph (2) and at 
     least 30 days before such conversion, the agency seeking to 
     use the missile as a space transportation vehicle transmits 
     to the Committee on National Security and the Committee on 
     Science of the House of Representatives, and to the Committee 
     on Armed Services and the Committee on Commerce, Science, and 
     Transportation of the Senate, a certification that the use of 
     such missile--
       (A) would result in cost savings to the Federal Government 
     when compared to the cost of acquiring space transportation 
     services from United States commercial providers;
       (B) meets all mission requirements of the agency, including 
     performance, schedule, and risk requirements;
       (C) is consistent with international obligations of the 
     United States; and
       (D) is approved by the Secretary of Defense or his 
     designee.
       (2) The requirement under paragraph (1) that the assurance 
     described in that paragraph must be transmitted at least 30 
     days before conversion of the missile shall not apply if the 
     Secretary of Defense determines that compliance with that 
     requirement would be inconsistent with meeting immediate 
     national security requirements.
       (c) Missiles Referred to.-- The missiles referred to in 
     this section are missiles owned by the United States that--
       (1) were formerly used by the Department of Defense for 
     national defense purposes as intercontinental ballistic 
     missiles; and
       (2) have been declared excess to United States national 
     defense needs and are in compliance with international 
     obligations of the United States.

     SEC. 306. NATIONAL LAUNCH CAPABILITY STUDY.

       (a) Findings.--Congress finds that--
       (1) a robust satellite and launch industry in the United 
     States serves the interest of the United States by--
       (A) contributing to the economy of the United States;
       (B) strengthening employment, technological, and scientific 
     interests of the United States; and
       (C) serving the foreign policy and national security 
     interests of the United States.
       (b) Definitions.--In this section:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Defense.
       (2) Total potential national mission model.--The term 
     ``total potential national mission model'' means a model 
     that--
       (A) is determined by the Secretary, in consultation with 
     the Administrator, to assess the total potential space 
     missions to be conducted by the United States during a 
     specified period of time; and
       (B) includes all United States launches (including launches 
     conducted on or off a Federal range).
       (c) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall, in consultation 
     with the Administrator and appropriate representatives of the 
     satellite and launch industry and the governments of States 
     and political subdivisions thereof--
       (A) prepare a report that meets the requirements of this 
     subsection; and
       (B) submit that report to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Science of the House of Representatives.
       (2) Requirements for report.--The report prepared under 
     this section shall--
       (A) identify the total potential national mission model for 
     the period beginning on the date of the report and ending on 
     December 31, 2007;
       (B) identify the resources that are necessary to carry out 
     the total potential national mission model described in 
     subparagraph (A), including providing for--
       (i) launch property and services of the Department of 
     Defense; and
       (ii) the ability to support commercial launch-on-demand on 
     short notification at national launch sites or test ranges;
       (C) identify each deficiency in the resources referred to 
     in subparagraph (B); and
       (D) with respect to the deficiencies identified under 
     subparagraph (C), including estimates of the level of funding 
     necessary to address those deficiencies for the period 
     described in subparagraph (A).
       (3) Quinquennial updates.--The Secretary shall update the 
     report required by paragraph (1) quinquennially beginning 
     with 2012.
       (d) Recommendations.--Based on the reports under subsection 
     (c), the Secretary, after consultation with the Secretary of 
     Transportation, the Secretary of Commerce, and 
     representatives from interested private sector entities, 
     States, and local governments, shall--
       (1) identify opportunities for investment by non-Federal 
     entities (including States and political subdivisions thereof 
     and private sector entities) to assist the Federal Government 
     in providing launch capabilities for the commercial space 
     industry in the United States;
       (2) identify 1 or more methods by which, if sufficient 
     resources referred to in subsection (c)(2)(D) are not 
     available to the Department of Defense, the control of the 
     launch property and launch services of the Department of 
     Defense may be transferred from the Department of Defense 
     to--
       (A) 1 or more other Federal agencies;
       (B) 1 or more States (or subdivisions thereof);
       (C) 1 or more private sector entities; or
       (D) any combination of the entities described in 
     subparagraphs (A) through (C); and
       (3) identify the technical, structural, and legal 
     impediments associated with making national ranges in the 
     United States viable and competitive.

                          ____________________