[Congressional Record Volume 144, Number 137 (Monday, October 5, 1998)]
[House]
[Pages H9494-H9502]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      COMMERCIAL SPACE ACT OF 1998

  Mr. ROHRABACHER. Mr. Speaker, I move to suspend the rules and agree 
to the resolution (H. Res. 572) providing for the consideration of the 
bill H.R. 1702 and the Senate amendment thereto.
  The Clerk read as follows:

                              H. Res. 572

       Resolved, That, upon the adoption of this resolution, the 
     House shall be considered to have taken from the Speaker's 
     table the bill H.R. 1702 together with the Senate amendment 
     thereto, and to have concurred in the Senate amendment with 
     an amendment as follows: In lieu of the matter proposed to be 
     inserted by the Senate amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Commercial 
     Space Act of 1998''.
       (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. Launch voucher demonstration program.
Sec. 104. Promotion of United States Global Positioning System 
              standards.
Sec. 105. Acquisition of space science data.
Sec. 106. Administration of Commercial Space Centers.
Sec. 107. Sources of Earth science data.

     TITLE II--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

Sec. 201. Requirement to procure commercial space transportation 
              services.
Sec. 202. Acquisition of commercial space transportation services.
Sec. 203. Launch Services Purchase Act of 1990 amendments.
Sec. 204. Shuttle privatization.
Sec. 205. Use of excess intercontinental ballistic missiles.
Sec. 206. 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).

[[Page H9495]]

          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 years 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 years 1997 
     and 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);
       (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 (9) the following new 
     paragraphs:
       ``(10) `reenter' and `reentry' mean to return or attempt to 
     return, purposefully, 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'';

[[Page H9496]]

       (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 inserting ``or Reentries'' after ``Launches'' in the 
     heading for subsection (e);
       (H) by inserting ``or reentry site or a reentry'' after 
     ``launch site'' in subsection (e); and
       (I) in subsection (f), by inserting ``launch or reentry'' 
     after ``carried out under a'';
       (13) in section 70113(a)(1) and (d)(1) and (2), by 
     inserting ``or reentry'' after ``one launch'' each place it 
     appears;
       (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 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, 
     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) $6,275,000 for the fiscal year ending September 30, 
     1999; and
       ``(2) $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. LAUNCH VOUCHER DEMONSTRATION PROGRAM.

       Section 504 of the National Aeronautics and Space 
     Administration Authorization Act, Fiscal Year 1993 (15 U.S.C. 
     5803) is amended--
       (1) in subsection (a)--
       (A) by striking ``the Office of Commercial Programs 
     within''; and
       (B) by striking ``Such program shall not be effective after 
     September 30, 1995.'';
       (2) by striking subsection (c); and
       (3) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively.

     SEC. 104. 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 the 
     Assistant Secretary of Commerce for Communications and 
     Information so that on an international basis the Assistant 
     Secretary can--

[[Page H9497]]

       (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. 105. ACQUISITION OF SPACE SCIENCE DATA.

       (a) Acquisition From Commercial Providers.--The 
     Administrator shall, to the extent possible and while 
     satisfying the scientific or educational requirements of the 
     National Aeronautics and Space Administration, and where 
     appropriate, of other Federal agencies and scientific 
     researchers, 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). For 
     purposes of such law and regulations, space science data 
     shall be considered to be a commercial item. Nothing in this 
     subsection shall be construed to preclude the United States 
     from acquiring, through contracts with commercial providers, 
     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--
       (1) the elemental and mineralogical resources of the moon, 
     asteroids, planets and their moons, and comets;
       (2) microgravity acceleration; and
       (3) 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. 106. 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, DC.

     SEC. 107. SOURCES OF EARTH SCIENCE DATA.

       (a) Acquisition.--The Administrator shall, to the extent 
     possible and while satisfying the scientific or educational 
     requirements of the National Aeronautics and Space 
     Administration, and where appropriate, of other Federal 
     agencies and scientific researchers, 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). For purposes of such 
     law and regulations, such data, services, distribution, and 
     applications shall be considered to be a commercial item. 
     Nothing in this subsection shall be construed to preclude the 
     United States from acquiring, through contracts with 
     commercial providers, sufficient rights in data to meet the 
     needs of the scientific and educational community or the 
     needs of other government activities.
       (c) Study.--(1) The Administrator shall conduct a study to 
     determine the extent to which the baseline scientific 
     requirements of Earth Science can be met by commercial 
     providers, and how the National Aeronautics and Space 
     Administration will meet such requirements which cannot be 
     met by commercial providers.
       (2) The study conducted under this subsection shall--
       (A) make recommendations to promote the availability of 
     information from the National Aeronautics and Space 
     Administration to commercial providers to enable commercial 
     providers to better meet the baseline scientific requirements 
     of Earth Science;
       (B) make recommendations to promote the dissemination to 
     commercial providers of information on advanced technology 
     research and development performed by or for the National 
     Aeronautics and Space Administration; and
       (C) identify policy, regulatory, and legislative barriers 
     to the implementation of the recommendations made under this 
     subsection.
       (3) The results of the study conducted under this 
     subsection shall be transmitted to the Congress within 6 
     months after the date of the enactment of this Act.
       (d) Safety Standards.--Nothing in this section shall be 
     construed to prohibit the Federal Government from requiring 
     compliance with applicable safety standards.
       (e) Administration and Execution.--This section shall be 
     carried out as part of the Commercial Remote Sensing Program 
     at the Stennis Space Center.
       (f) Remote Sensing.--
       (1) Application contents.--Section 201(b) of the Land 
     Remote Sensing Policy Act of 1992 (15 U.S.C. 5621(b)) is 
     amended--
       (A) by inserting ``(1)'' after ``National Security.--''; 
     and
       (B) by adding at the end the following new paragraph:
       ``(2) The Secretary, within 6 months after the date of the 
     enactment of the Commercial Space Act of 1998, 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.''.
       (2) Notification of agreements.--Section 202(b)(6) of the 
     Land Remote Sensing Policy Act of 1992 (15 U.S.C. 5622(b)(6)) 
     is amended by inserting ``significant or substantial'' after 
     ``Secretary of any''.
     TITLE II--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

     SEC. 201. 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 
     international agreements for international collaborative 
     efforts relating to science and technology;
       (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.

     Nothing in this section shall prevent the Administrator from 
     planning or negotiating agreements with foreign entities for 
     the launch of Federal Government payloads for international 
     collaborative efforts relating to science and technology.
       (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. 202. ACQUISITION OF COMMERCIAL SPACE TRANSPORTATION 
                   SERVICES.

       (a) Treatment of Commercial Space Transportation Services 
     as Commercial Item 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). For purposes of such law and 
     regulations, space transportation services shall be 
     considered to be a commercial item.
       (b) Safety Standards.--Nothing in this section shall be 
     construed to prohibit the Federal Government from requiring 
     compliance with applicable safety standards.

     SEC. 203. 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. 204. 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 space 
     transportation requirements for transportation to

[[Page H9498]]

     and from Earth orbit, 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. 205. 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
       (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 
     certification 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. 206. NATIONAL LAUNCH CAPABILITY STUDY.

       (a) Findings.--Congress finds that a robust satellite and 
     launch industry in the United States serves the interest of 
     the United States by--
       (1) contributing to the economy of the United States;
       (2) strengthening employment, technological, and scientific 
     interests of the United States; and
       (3) 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 in the United States during a 
     specified period of time; and
       (B) includes all launches in the United States (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 subsection 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 or available 
     to carry out the total potential national mission model 
     described in subparagraph (A), including--
       (i) launch property and services of the Department of 
     Defense, the National Aeronautics and Space Administration, 
     and non-Federal facilities; and
       (ii) the ability to support commercial launch-on-demand on 
     short notification, taking into account Federal requirements, 
     at launch sites or test ranges in the United States;
       (C) identify each deficiency in the resources referred to 
     in subparagraph (B); and
       (D) with respect to the deficiencies identified under 
     subparagraph (C), include estimates of the level of funding 
     necessary to address those deficiencies for the period 
     described in subparagraph (A).
       (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 and the National 
     Aeronautics and Space Administration, the control of the 
     launch property and launch services of the Department of 
     Defense and the National Aeronautics and Space Administration 
     may be transferred from the Department of Defense and the 
     National Aeronautics and Space Administration 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 launch sites or test 
     ranges in the United States viable and competitive.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Rohrabacher) and the gentleman from Tennessee (Mr. 
Gordon) each will control 20 minutes.
  The Chair recognizes the gentleman from California (Mr. Rohrabacher).
  (Mr. ROHRABACHER asked and was given permission to revise and extend 
his remarks.)
  Mr. ROHRABACHER. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, this resolution takes from the Speaker's desk H.R. 1702 
as reported back by the Senate and passed with an amendment.
  The Commercial Space Act of 1998 is a small legislative step that 
will enable giant leaps for America's commercial space industry. It is 
the culmination of 3 years of extensive bipartisan consultation and 
cooperation within the Committee on Science, with the Senate Committee 
on Commerce, Science and Transportation, and with the administration as 
well.
  I support the product of this effort and wish to thank the Members on 
both sides of the aisle and in the other body for their help in making 
this possible.
  H.R. 1702 passed the House last year. The Senate passed an amended 
H.R.

[[Page H9499]]

1702 this July. The House and Senate have negotiated the compromise 
bill that is before us today. I urge my colleagues to support this 
commercial space bill so we can send it to the Senate and then to the 
President for his immediate signature.
  The compromise bill promotes the continued growth of the United 
States commercial space industry. It requires an independent market 
study of and a NASA report on progress in commercializing the 
international space station. It authorizes the Department of 
Transportation to license the reentry of space transportation vehicles.
  It makes permanent a launch voucher demonstration program so that 
scientists can buy their own launch services instead of being told when 
and how their experiments can fly into space. It encourages the 
President to ensure that the United States global positioning system 
becomes the world standard so that foreign systems will not interfere 
with the GPS satellite signals.
  It encourages NASA to buy commercial data for both space science and 
earth science researchers. It directs NASA to manage its commercial 
space centers out of NASA headquarters in Washington, D.C.
  It includes provisions which clarify the regulation of U.S. 
commercial remote sensing companies. It requires the Federal Government 
to purchase space transportation services instead of building and 
operating its own vehicles. It requires NASA to plan for the potential 
privatization of the space shuttle. It allows the use of access ICBMs 
as low-cost space transportation vehicles, and it requires that the 
Department of Defense study our national launch demand and 
infrastructure capability through the year 2007.
  At the same time, I am sad to report that one of the most important 
portions of H.R. 1702, which dealt with commercial remote sensing, had 
to be abandoned in order to secure the passage of this legislation in 
the Senate, but some of our government's Cold War bureaucrats seem to 
want to have the same power that they had and are unwilling to see that 
change take place for now, but we will fight that battle on another 
day.
  I can honestly say that we tried very hard to meet the administration 
halfway, and after holding two subcommittee hearings on the topic, the 
committee made several changes to the bill in order to accommodate the 
administration requests, both in committee markup and later on the 
House floor. The State Department kept pushing for even more authority 
than they have now, so rather than give them that authority and make 
life even harder for our remote sensing industry, we decided simply to 
strike title II from the bill, and say, we will come back and talk 
about that issue on another day.
  Today, however, we should celebrate a legislative glass that is more 
than half full. The chairman, the gentleman from Wisconsin (Mr. 
Sensenbrenner), and ranking member, the gentleman from California (Mr. 
Brown) have offered us a great deal of leadership in this area. I 
salute both of them. I especially salute the ranking member, the 
gentleman from California (Mr. Brown), who is with us on the floor at 
this time. He and the chairman, the gentleman from Wisconsin (Mr. 
Sensenbrenner), have shown in the Committee on Science that we 
certainly have as bipartisan a committee as anyone on the floor, and 
the gentleman from Tennessee (Mr. Gordon), the ranking member on the 
subcommittee, has been working with me in that spirit.
  I am very proud to have worked with my friends on the other side of 
the aisle to come up with this piece of legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GORDON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 1702, the Commercial Space Act 
of 1998. This act represents another in a long series of bipartisan 
efforts to promote the development of a healthy and expanding U.S. 
commercial space sector.
  I will not attempt to discuss every provision in H.R. 1702, but I 
would like to highlight a number of important aspects of the bill.
  First, H.R. 1702 contains a series of amendments to existing law that 
should help the U.S. commercial launch industry to move to a new 
generation of low-cost launch vehicles. The amendments authorize the 
U.S. Department of Transportation to license reusable launch vehicles, 
vehicles that can take off, fly into space and return to earth to be 
used again.
  A number of U.S. companies, both large and small, have such new 
vehicles under development. However, they need to have a predictable 
licensing and regulatory environment. H.R. 1702 will help establish 
that environment.
  Second, H.R. 1702 makes a strong statement of support for the global 
positioning system and encourages the administration to ensure the 
operation of the global positioning system on a continuous worldwide 
basis, free of direct user fees. GPS has provided the foundation for 
the growth of entirely new businesses, and we need to assure that it 
and its augmentations continue to play that role.
  Third, H.R. 1702 contains other provisions to promote governmental 
purchases of commercial data and launch services when appropriate. 
These provisions can help to promote the further development of the 
commercial space sector in the years ahead.
  Mr. Speaker, this final version of H.R. 1702 is the result of 
constructive discussions and compromises between the House, the Senate 
and the administration. I want to express my appreciation for the 
positive roles played by the chairman, the gentleman from Wisconsin 
(Mr. Sensenbrenner), the ranking member, the gentleman from California 
(Mr. Brown), the subcommittee chairman, the gentleman from California 
(Mr. Rohrabacher) and their staffs.
  H.R. 1702 is a bill that will foster economic growth, and I urge my 
colleagues to support it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ROHRABACHER. Mr. Speaker, I yield myself 30 seconds.
  Mr. Speaker, we have with us today in the hall the former chairman, 
now ranking member, the gentleman from California (Mr. Brown), who I 
mentioned, but we also have the former chairman of the Committee on 
Science, Mr. Walker, who spent considerable time and effort on this 
piece of legislation, and I would like to applaud Mr. Walker's efforts 
over the years. He has spent many, many years on space 
commercialization projects, and this piece of legislation reflects that 
hard work and dedication on his part.
  Mr. Speaker, I yield 4 minutes to the gentleman from Florida (Mr. 
Weldon), who has worked long and hard on this piece of legislation.

                              {time}  1945

  Mr. WELDON of Florida. Mr. Speaker, I thank the chairman of the 
subcommittee for yielding time, and I rise in support of this 
legislation. I encourage all of my colleagues on both sides of the 
aisle to support and vote for this very important legislation.
  I represent the east central coast of Florida, the area that includes 
Cape Canaveral and Kennedy Space Center. Years ago, most of the 
launches were for the government. But today the majority of launches 
from Cape Canaveral are for commercial satellites. These are 
telecommunications satellites that carry TV signals or telephone 
conversations as well as remote sensing satellites that can help 
American farmers better manage their crops and be more efficient and 
more productive. That is what this legislation is all about, being more 
efficient and more productive, the use of space for the betterment of 
mankind, helping to create better jobs, using our tax dollars more 
efficiently.
  This legislation will make it easier for everyone, from satellite or 
launch vehicle manufacturers to remote sensing and telecommunications 
service providers to better be able to do business in the 21st century. 
It will better enable American companies to compete in an increasingly 
competitive international marketplace. The space industry is an example 
of another industry that the United States essentially created, but 
like many industries that the United States has created, it is at risk 
of going overseas and no longer being in the United States. Therefore, 
this legislation is badly needed.
  In particular, I would like to mention the section of the bill that 
deals with the feature regarding the licensing of commercial space 
vehicles that reenter the atmosphere. Today the only space

[[Page H9500]]

vehicle that regularly reenters the atmosphere is our Nation's space 
shuttle. But it is used for government missions and not for launching 
commercial satellites. There are several new launch vehicles in the 
developmental stage today, including the Lockheed Martin Venture Star 
that will launch commercial satellites and then return to earth, be 
refueled, refurbished and then launched again in a similar fashion to 
the way the space shuttle is handled. This legislation will better 
enable the government to license and regulate those types of launch 
vehicles.
  Again, I rise in strong support. I commend the chairman of the 
subcommittee and ranking member, as well as the chairman and ranking 
member of the full committee for their work that they have done in 
support of this legislation.
  Mr. GORDON. Mr. Speaker, I yield such time as he may consume to the 
gentleman from California (Mr. Brown), one of the most knowledgeable 
Members of this body on our space program.
  (Mr. BROWN of California asked and was given permission to revise and 
extend his remarks.)
  Mr. BROWN of California. I thank the ranking member for yielding me 
this time. I could abuse it since he put no limit on it, but I promise 
my colleagues I will not do that.
  Mr. Speaker, I should point out that approximately 41 years ago we 
entered into a new age, the space age, with the launch of Sputnik which 
scared the daylights out of a lot of people around the world, including 
here in the United States, and stimulated our own efforts to move into 
the new space age. That age has proceeded more rapidly than many of us 
had ever assumed that it might and less rapidly than some had hoped. It 
is 41 years old approximately.
  It is notable that today commercial space revenues have exceeded the 
amount of money which the governments of the world spend on space. This 
is a rather remarkable feature in itself, but I think we are just 
looking at the beginning of a vast increase in commercial space 
activities. Of course that is what this bill is intended to address.
  It is not a revolutionary bill. I sometimes criticize legislation for 
not going as far as it should. I personally would like to have seen 
this bill go much further into new areas of space commercialization, 
new legislative structures and so forth. I recognize, however, the 
tremendous amount of work which has gone into bringing us this piece of 
legislation, and I am not going to be critical of the fact that the 
bill does not reach as far as I would like.
  What I expect to see happening in the very near future was indicated 
I think rather well by the gentleman from Florida (Mr. Weldon) when he 
pointed to the vast expansion of reusable launch vehicles which are in 
the offing. One of those systems is being developed in my own district 
in California. Most of these systems are tied to the increasing number 
of communications satellites which are being launched around the globe. 
We will see a proliferation of new systems with hundreds, possibly 
thousands of satellites, all of which will have to be launched into low 
earth orbit and then replaced at fairly frequent intervals. So we can 
be absolutely certain that we are going to see a very large demand for 
economical, reusable launch vehicle systems. This may be the driving 
factor in the development of a much more robust commercial space 
business than we have today.
  There are also many other very attractive commercial opportunities in 
space which we will not dwell on this evening, but I see the potential 
for each of these other kinds of activities reaching similar 
possibilities to what we see in satellite communication systems.
  I strongly support this bill. I commend the various people who worked 
so hard on it. I hope that we will be able to come back at a future 
time with a more comprehensive bill which will strengthen the position 
of the private sector in the development of commercial space business 
and will allow us to move even further into this great new space age 
that we are in.
  Mr. Speaker, I would like to speak in favor of H.R. 1702, the 
Commercial Space Act of 1998. While H.R. 1702 is a relatively modest 
bill, it will, I believe, provide an important stimulus to the 
continued growth of the U.S. commercial space sector.
  It was 41 years ago Sunday that the space age dawned with the launch 
of Sputnik. America and the rest of the world have come a long way in 
space since then. One of the most important developments has been the 
growth of a robust commercial space sector in the United States. 
Worldwide, commercial space revenues--driven in large part by the 
explosive growth of satellite communicaitons--exceeded governmental 
space expenditures for the first time last year. I expect that this 
trend will continue.
  H.R. 1702 will help to promote the commercial space sector in a 
number of ways. I would like to focus on one of those, namely the 
licensing provisions for reusable launch vehicles (RLVs) and reentry 
vehicles. These RLVs offer the promise of significant reductions in the 
cost of launching payloads into space. A number of companies, including 
the entrepreneurial Kelly Space and Technology, Inc., are working hard 
to turn the promise of low cost access to space into reality.
  H.R. 1702 will help provide a predictable licensing and regulatory 
environment that is necessary if this new industry is to flourish.
  H.R. 1702 contains a number of other notable provisions, including 
ones related to the global positioning system, commercial launch 
services and commercial ``data buys''.
  In addition, I am pleased that this final version of H.R. 1702 
restores the ability of the U.S. government to continue to carry out 
international collaborations in science and technology with other 
nations--collaborations that have delivered great benefits to the 
United States.
  Mr. Speaker, I believe that H.R. 1702 represents a constructive step 
forward by Congress in the promotion of a vibrant commercial space 
sector. I wish to express my appreciation to Science Committee Chairman 
Sensenbrenner, as well as to Chairman Rohrabacher and Mr. gordon, the 
chair and ranking member of the Space Subcommittee for all of their 
efforts on this bill.
  I urge my colleagues to pass H.R. 1702.
  Mr. ROHRABACHER. Mr. Speaker, I yield such time as he may consume to 
the gentleman from Texas (Mr. Brady) for a colloquy about an important 
provision of this bill.
  Mr. BRADY of Texas. Mr. Speaker, I first want to thank the chairman 
for his leadership as chair of the Subcommittee on Space and 
Aeronautics and that of the ranking minority member for the leadership 
on this important issue.
  Mr. Speaker, when this bill was marked up in the subcommittee, we 
added a section which required that NASA administer the Commercial 
Space Center program from NASA headquarters. These centers are the 
primary mechanism by which NASA works to spark new commercial research 
and investment in space development, particularly regarding commercial 
research on and use of the International Space Station. Because these 
centers are so important, the committee wanted to make sure that they 
were administered and funded in a fair and consistent way by NASA 
headquarters.
  Mr. ROHRABACHER. Mr. Speaker, will the gentleman yield?
  Mr. BRADY of Texas. I yield to the gentleman from California.
  Mr. ROHRABACHER. Mr. Speaker, the gentleman is entirely correct. The 
committee was concerned that when NASA abolished its Office of Space 
Access and Technology, some of these Commercial Space Centers got lost 
in the shuffle. Some of them were placed under the management of and 
funded through NASA's Office of Life and Microgravity Sciences and 
Applications, while others were turned over to various NASA field 
centers but without any money to fund them. While the Congress has no 
desire to tell NASA which Commercial Space Centers to fund, we do want 
to make sure that centers are not being harmed or even killed off 
because of hidden ad hoc decisions on management and funding. Section 
106 of the Commercial Space Act requires that NASA headquarters 
administer, including providing visible and specified funding for, the 
Commercial Space Centers program.
  Mr. BRADY of Texas. As the chairman of the subcommittee may know, the 
National Academy of Public Administration recently issued a study on 
the Commercial Space Center program which states that the role NASA 
headquarters should play in the Commercial Space Center program 
includes ``guidance, oversight, funding, and the clarification of 
expectations and specification of accountability.''
  Mr. ROHRABACHER. The gentleman raises an excellent point. The report 
he

[[Page H9501]]

refers to confirms the need to apply fair and consistent standards in 
managing and funding important activities like the Commercial Space 
Center program, which is precisely the intent of section 106 of this 
bill. I promise the gentleman from Texas that we will continue to work 
with him and many other Members of the House to ensure that NASA 
headquarters develops and implements an effective system of 
administering this program, including providing appropriate funds for 
those centers which are performing well on the taxpayers' behalf.
  Mr. GORDON. Mr. Speaker, I have no more speakers. I simply close by 
saying this is a good bill, it deserves the strong support of this 
House, and I yield back the balance of my time.
  Mr. ROHRABACHER. Mr. Speaker, I yield myself such time as I may 
consume. This bill moves forward with very few ruffles and flourishes. 
Yet we should not miss the significance of what it represents and of 
what is happening here today.
  Last week on October 1, the Subcommittee on Space and Aeronautics 
held a hearing on the occasion of NASA's 40th anniversary. It seems 
almost like yesterday as Chairman Brown noted when Sputnik went up, but 
it also seems like generations ago when we saw NASA in its heyday in 
the early 1960s launching Americans into space. But for the most part, 
the early part of NASA's history, at least the first two decades, and 
there has been an evolution since, for the most part, space was a 
government endeavor. During that early time, much of the impetus during 
the space race was brought on by a spirit of cooperation, if not a 
spirit of survival during the Cold War. Our race into space during the 
Cold War was looked at as something having to do with our national 
survival. Much of the spending that took place in terms of defense 
spending was justified and has brought us to this point today. In fact, 
over the years our space program has benefited greatly, our commercial 
space program and our civilian space program through NASA has benefited 
greatly from technological spinoffs from our own defense spending. 
However, we are now, and this is perhaps what this bill signifies, at a 
turning point. The Cold War is over. A whole new approach to space is 
being taken by the United States of America. No longer is space going 
to be the purview and the arena of government. Instead we are going to 
through this legislation unleash our greatest asset, and that is the 
creativity and the entrepreneurial genius and the profit motive of 
America's private sector. In fact, we can no longer afford a space 
program that is basically a government program, or a defense-related 
program. We have to bring in private capital. We have to bring in the 
private sector. We have to bring in competition and the profit motive 
to make sure our space program, America's space effort, is done 
effectively and that we dream big dreams. Unlike in some programs that 
are controlled by the bureaucracy, those programs quite often are only 
interested in trying to get enough money for next year's funding level. 
What is happening with this commercial bill is a good first step. As I 
mentioned, Chairman Walker and Chairman Brown, who have spent such a 
considerable amount of time, oversaw this legislation and have brought 
us to this turning point.
  I would like to share just a few thoughts and perhaps our ranking 
member the gentleman from Tennessee (Mr. Gordon) would like to join me 
as well, just a few thoughts that emerged from our hearing last week 
when we were celebrating the 40th anniversary of NASA. We had some 
people who were talking about what the next 40 years of America's space 
program will be like. It is going to be much different than the first 
40 years. In fact, I would expect that some of the investments in the 
private sector will have spinoffs that will help us in the defense 
arena. In fact, where before it was defense spending that the spinoffs 
helped us in the commercial and civilian area, it is going to go just 
the opposite in the years ahead. In order to spur growth and commercial 
activity in space, we will be working on another commercial space bill 
next year, starting next session, and I am sure we will have the same 
cooperation that we have had this year with both sides of the aisle.
  There are many ideas that are exciting people about what we can do in 
space. The 40th anniversary is marking a turning point but it is 
marking, you might say we have reached a stage from which then we will 
proceed into outer space, and in the exploration and the utilization of 
space for the benefit of mankind.
  The Speaker has mentioned to me his support for these type of 
approaches. I have spoken to the Speaker about a concept that is close 
to my heart of trying to declare space a tax-free zone and is something 
Mr. Walker talked about several years ago. I call it the zero-gravity, 
zero-tax approach. If we can ensure that people who are investing in 
space projects, new creative approaches and new projects, not things 
that have been done in the past but things that, for example, we are 
having trouble now with the Space Station, it is a big challenge to 
come up with some of the funds for Space Station.

                              {time}  2000

  But if we enrich or enliven the private sector, and we give 
encouragement and incentive to people in the private sector and Wall 
Street to invest, perhaps there can be some economic activities on the 
space station with zero gravity and zero taxes to be paid that will 
bring money out of the private sector.
  We can also look, for example, to the solution of some of the 
problems that have seemed intractable in our past.
  Mr. Speaker, I am very excited about the possibility of using space 
as a vehicle to transport energy to different parts of the world. We 
have being studied now in the NASA budget with the support of the 
ranking member and our friends on the other side of the aisle, NASA is 
studying the idea of technology that might permit oil rich and gas rich 
Azerbaijan or Turkmenistan or countries in central Asia for example, 
Kazakhstan, to be able to use their natural gas to produce electricity 
there and shoot the electricity into a satellite system; we call it 
space grid; which could then transmit that electricity anywhere in the 
planet, and with a zero-gravity zero-tax approach, we might be able to 
build a space grid without the use of any taxpayers' dollars.
  We might be able to establish a moon base in the next 10 years 
perhaps just from the external tanks of the shuttle, that we might be 
able to get there at very little money. We could have 20 or 30 of these 
external tanks that are pressurized tanks that future generations of 
American could put to use as a space colony on the moon.
  Asteroids. There has been a lot of movies about asteroids lately that 
talk about the fear of asteroids hitting the earth, but asteroids also 
present to us a great opportunity. Asteroids are made out of materials 
that can be very valuable on the earth, and also asteroids can be 
turned into a space station that already exists and just is there to be 
exploited by mankind.
  We are also developing now new propulsion systems, and up until now 
only rockets have been used to take mankind into space. In the future 
that will be different. In fact, the rockets that we use, we are 
developing new reusable rockets that will dramatically bring down the 
cost of getting into space via rockets, but at the same time we are 
developing new propulsion systems. For example, there is one that is 
based on a laser beam that will use the energy of the laser beam to 
transport an object, a satellite, into space so it does not have to 
carry its own fuel.
  When these type of technologies are fully developed and we bring the 
full strength of the private sector, we will realize a new world, and 
we will realize a new opportunity on this world, and it is a very 
exciting time to be the chairman of this committee and to be a member 
of this committee, and again it represents, this dream represents, the 
best of bipartisanship in the House of Representatives.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I strongly favor this measure 
because it seeks to bolster our Nation's space industry's capabilities. 
By expanding our utilization of our commercial space industry, we 
foster a strong alliance between government and private-sector 
entities, an alliance that will propel America's space program into the 
next millennium.
  This bill bolsters our Nation's space industry by establishing a 
regulatory infrastructure for the licensing of private reusable launch 
vehicles. Moreover, this piece of legislation alters the role of the 
National Aeronautics and

[[Page H9502]]

Space Administration (NASA) to promote private-sector involvement and 
competition in the development of industrial space products.
  By authorizing the Transportation Department's Office of Commercial 
Space Transportation to issue licenses to private companies for 
launching re-usable space vehicles, this measure allows commercial 
entities to launch vehicles into space and pilot them back to earth. 
Currently, private companies are not permitted to pilot their vehicles 
back to earth after a launch.
  Providing this authorization will foster the development of a strong, 
private-sector space transportation industry in our country. It is my 
hope that this sector of the space industry will result in cost-
effective transport services to NASA and commercial companies.
  This measure also requires NASA to begin purchasing space 
transportation services from the private sector when such services are 
available. This portion of the bill has been carefully crafted to 
permit NASA autonomy when necessary. For instance, projects that 
require the unique capabilities of the space shuttle and sensitive 
national security projects would be excepted from the bill's 
requirement regarding NASA's utilization of private sector providers. 
More importantly, the use of commercial services would not be required 
for missions beyond Earth orbit, missions such as flights to the Moon, 
Mars, or beyond.

  I also support this measure's advocacy of the U.S. Global Positioning 
System (GPS). This piece of legislation encourages the President to 
ensure the continued operation of the U.S. GPS navigation satellites on 
a world-wide basis. By promoting the U.S. GPS through international 
agreements, we can encourage our global partners to accept this 
extraordinary system as the international standard.
  Finally, I believe that this measure's requirement that NASA plan for 
the potential privatization of the space shuttle is appropriate. The 
continued deployment of shuttle missions is imperative, and it is 
possible that private-sector corporations could provide more cost-
efficient launches. By merging commercial and government resources, we 
could ensure that the space shuttle will remain a viable fixture in 
space exploration for many years to come.
  This measure appeals to all involved, and I am certain that 
cooperation between American Government and commercial entities will 
pave the way to the exploration of unimaginable frontiers.
  Mr. ROHRABACHER. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Rohrabacher) that the House suspend the 
rules and agree to the resolution, H. Res. 572.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the resolution was agreed to.
  A motion to reconsider was laid on the table.

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