[Congressional Record Volume 145, Number 132 (Monday, October 4, 1999)]
[House]
[Pages H9246-H9248]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      COMMERCIAL SPACE TRANSPORTATION COMPETITIVENESS ACT OF 1999

  Mr. SENSENBRENNER. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 2607) to promote the development of the commercial space 
transportation industry, to authorize appropriations for the Office of 
the Associate Administrator for Commercial Space Transportation, to 
authorize appropriations for the Office of Space Commercialization, and 
for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 2607

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Commercial Space 
     Transportation Competitiveness Act of 1999''.

     SEC. 2. FINDINGS.

       The Congress finds that--
       (1) a robust United States space transportation industry is 
     vital to the Nation's economic well-being and national 
     security;
       (2) a 5-year extension of the excess third party claims 
     payment provision of chapter 701 of title 49, United States 
     Code, (Commercial Space Launch Activities) is necessary at 
     this time to protect the private sector from uninsurable 
     levels of liability;
       (3) enactment of this extension will have a beneficial 
     impact on the international competitiveness of the United 
     States space transportation industry;
       (4) space transportation may eventually move into more 
     airplane-style operations;
       (5) during the next 3 years the Federal Government and the 
     private sector should analyze and determine whether a more 
     appropriate and effective liability risk-sharing regime can 
     be achieved and, if so, develop and propose the new regime to 
     Congress at least 2 years prior to the expiration of the 
     extension contained in this Act;

[[Page H9247]]

       (6) the areas of responsibility of the Office of the 
     Associate Administrator for Commercial Space Transportation 
     have significantly increased as a result of--
       (A) the rapidly expanding commercial space transportation 
     industry and associated government licensing requirements;
       (B) regulatory activity as a result of the emerging 
     commercial reusable launch vehicle industry; and
       (C) the increased regulatory activity associated with 
     commercial operation of launch and reentry sites; and
       (7) the Office of the Associate Administrator for 
     Commercial Space Transportation should engage in only those 
     promotional activities which directly support its regulatory 
     mission.

     SEC. 3. OFFICE OF COMMERCIAL SPACE TRANSPORTATION.

       (a) Amendment.--Section 70119 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 70119. Office of Commercial Space Transportation

       ``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 fiscal year 1999;
       ``(2) $7,000,000 for fiscal year 2000;
       ``(3) $8,300,000 for fiscal year 2001; and
       ``(4) $9,840,000 for fiscal year 2002.''.
       (b) Table of Sections Amendment.--The item relating to 
     section 70119 in the table of sections of chapter 701 of 
     title 49, United States Code, is amended to read as follows:

``70119.  Office of Commercial Space Transportation.''.

     SEC. 4. OFFICE OF SPACE COMMERCIALIZATION.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Commerce for the 
     activities of the Office of Space Commercialization--
       (1) $530,000 for fiscal year 2000;
       (2) $550,000 for fiscal year 2001; and
       (3) $570,000 for fiscal year 2002.
       (b) Report to Congress.--Not later than 90 days after the 
     date of the enactment of this Act, the Secretary of Commerce 
     shall transmit to the Congress a report on the Office of 
     Space Commercialization detailing the activities of the 
     Office, the materials produced by the Office, the extent to 
     which the Office has fulfilled the functions established for 
     it by the Congress, and the extent to which the Office has 
     participated in interagency efforts.

     SEC. 5. COMMERCIAL SPACE TRANSPORTATION INDEMNIFICATION 
                   EXTENSION.

       Section 70113(f) of title 49, United States Code, is 
     amended by striking ``December 31, 1999'' and inserting 
     ``December 31, 2004''.

     SEC. 6. LIABILITY REGIME FOR COMMERCIAL SPACE TRANSPORTATION.

       (a) Report Requirement.--Not later than 18 months after the 
     date of the enactment of this Act, the Secretary of 
     Transportation shall transmit to the Congress a report on the 
     liability risk-sharing regime in the United States for 
     commercial space transportation.
       (b) Contents.--The report required by this section shall--
       (1) analyze the adequacy, propriety, and effectiveness of, 
     and the need for, the current liability risk-sharing regime 
     in the United States for commercial space transportation;
       (2) examine the current liability and liability risk-
     sharing regimes in other countries with space transportation 
     capabilities;
       (3) examine whether it is appropriate for all space 
     transportation activities to be deemed ``ultrahazardous 
     activities'' for which a strict liability standard may be 
     applied and, if not, what liability regime should attach to 
     space transportation activities, whether ultrahazardous 
     activities or not;
       (4) examine how relevant international treaties affect the 
     Federal Government's liability for commercial space launches 
     and whether the current domestic liability risk-sharing 
     regime meets or exceeds the requirements of those treaties;
       (5) examine whether and when the commercial space 
     transportation liability regime could be conformed to the 
     approach of the airline liability regime; and
       (6) include recommendations on whether the commercial space 
     transportation liability regime should be modified and, if 
     so, what modifications are appropriate and what actions are 
     required to accomplish those modifications.
       (c) Sections.--The report required by this section shall 
     include--
       (1) a section containing the views of--
       (A) the Office of the Associate Administrator for 
     Commercial Space Transportation;
       (B) the National Aeronautics and Space Administration;
       (C) the Department of Defense;
       (D) the Office of Space Commercialization; and
       (E) any other interested Federal agency,
     on the issues described in subsection (b);
       (2) a section containing the views of United States 
     commercial space transportation providers on the issues 
     described in subsection (b);
       (3) a section containing the views of United States 
     commercial space transportation customers on the issues 
     described in subsection (b);
       (4) a section containing the views of the insurance 
     industry on the issues described in subsection (b); and
       (5) a section containing views obtained from public comment 
     received as a result of notice in Commerce Business Daily, 
     the Federal Register, and appropriate Federal agency Internet 
     websites on the issues described in subsection (b).

     The Secretary of Transportation shall enter into appropriate 
     arrangements for a non-Federal entity or entities to provide 
     the sections of the report described in paragraphs (2), (3), 
     and (4).

     SEC. 7. STUDY OF APPROPRIATIONS IMPACT ON SPACE 
                   COMMERCIALIZATION.

       Within 90 days after the later of the date of enactment of 
     this Act or the date of enactment of the Departments of 
     Veterans Affairs and Housing and Urban Development, and 
     Independent Agencies Appropriations Act, 2000, the 
     Comptroller General, in consultation with the Administrator 
     of the National Aeronautics and Space Administration and 
     United States commercial space industry providers and 
     customers, shall transmit to the Congress a report on the 
     impact of that appropriations Act on the future development 
     of the United States commercial space industry.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Wisconsin (Mr. Sensenbrenner) and the gentleman from Texas (Mr. 
Lampson) each will control 20 minutes.
  The Chair recognizes the gentleman from Wisconsin (Mr. 
Sensenbrenner).


                             General Leave

  Mr. SENSENBRENNER. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on H.R. 2607, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Wisconsin?
  There was no objection.
  (Mr. SENSENBRENNER asked and was given permission to revise and 
extend his remarks.)
  Mr. SENSENBRENNER. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, H.R. 2607, the Commercial Space Transportation 
Competitiveness Act of 1999, provides a 5-year extension for what is 
commonly referred to as indemnification. This extension is necessary to 
protect space transportation companies from uninsurable levels of 
liability and to enhance the international competitiveness of the 
American companies. The current indemnification provision expires at 
the end of this year, so we need to move quickly in order to get this 
extension enacted before the end of the year.
  H.R. 2607 also includes a reporting provision on whether the current 
risk-sharing regime should be modified. The report calls for separate 
sections from the Federal Government, the U.S. space transportation 
providers and customers, the insurance industry and the general public. 
This report will provide the basis for Congressional hearings and 
public debate in the future and should provide the framework for the 
new regime in plenty of time before this extension expires in 2004.
  The bill also includes authorizations for the Office of Commercial 
Space Transportation and the Office of Space Commercialization, and 
requires a report on the objectives, activities and plans of the Office 
of Space Commercialization.
  In short, this is a straightforward bill. It only contains, one, the 
indemnification extension; two, a report on how indemnification might 
be structured in the future; three, authorizations for two small 
commercial space offices; and, four, a section requiring a GAO report.
  I strongly support this bill, and urge my colleagues to vote in favor 
of it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LAMPSON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I want to rise in support of H.R. 2607. As the gentleman 
from Wisconsin (Chairman Sensenbrenner) has very eloquently stated, 
this bill addresses a clear need of the U.S. commercial space industry.
  A central feature of the bill is a 5-year extension of the commercial 
space launch indemnification authority that has existed in law since 
1988. That authority has established a risk-sharing regime between the 
launch industry and the Federal Government. That indemnification 
authority has helped to level the international playing field with non-
U.S. space launch companies whose governments have provided them with 
similar risk-sharing arrangements. The provisions have not cost the 
U.S. taxpayer a single dollar since they went into force a decade ago.

[[Page H9248]]

  The indemnification authority has been renewed once since its initial 
establishment, and H.R. 2607 would extend that authority for another 5 
years. I believe that extension of the indemnification authority is in 
our Nation's best interests, and I urge Members to vote to suspend the 
rules and pass the bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SENSENBRENNER. Mr. Speaker, I yield such time as he may consume 
to the gentleman from California (Mr. Rohrabacher).
  (Mr. ROHRABACHER asked and was given permission to revise and extend 
his remarks.)
  Mr. ROHRABACHER. Mr. Speaker, I thank the gentleman from Wisconsin, 
my friend and chairman of the Committee on Science, for discharging 
H.R. 2607 and bringing it to the floor today.
  Mr. Speaker, this legislation is just one more thing that this 
Congress is doing to respond to the Cox Committee's report and 
strengthen America's space transportation industry. This bill 
authorizes two important offices which regulate and promote this 
industry and renews commercial launch indemnification authority for 5 
years beyond its expiration at the end of this year.
  America's space transportation industry is still in its childhood as 
far as maturity goes. It is becoming very dynamic. We are now 
experiencing and witnessing many reusable launch as well as expendable 
launch vehicles under development that in the future will serve America 
well.
  In the future, I would hope that the government could shoulder less 
risk so that the industry is fully motivated to invest in more reliable 
and safe and reusable launch vehicles. In fact, as the reusables that 
are under development now and the expendables that are under 
development now come into fruition, as they are put into practice and 
they are put into service for the American people, we expect these 
space transportation systems to be developed and to be further improved 
so that indemnification will not quite be the issue that it is at this 
stage in America's space program.
  Furthermore, this legislation sets in place an independent process to 
advise the Congress on how the government and the private sector should 
share the risk in space transportation activities in the future. So we 
are preparing for that day when this type of indemnification may no 
longer be necessary.
  In particular, we are asking launch companies, their customers and 
their insurers as well, to serve and to give us input into how and when 
we might carefully change the current regime. By renewing the current 
regime for 5 years and giving industry the opportunity to shape the 
future, I believe we are serving the taxpayers well and giving 
America's space transportation companies a stable business environment 
so they can become more competitive and so that they can develop these 
new space transportation technologies that will keep America the number 
one power in commercial space as well as the number one power in some 
of the space projects that are being developed for dual use with the 
Defense Department and NASA as well as in the private sector.
  Mr. Speaker, I again thank the gentleman from Wisconsin, the chairman 
of the committee, for discharging this bill, and for supporting it, and 
for the leadership he has provided for America's space industry.
  Mr. GORDON. Mr. Speaker, I want to speak in support of H.R. 2607. 
This bill has as its central element a provision that would extend the 
launch indemnification authority that was established in the Commercial 
Space Launch Act, as amended. That authority established a predictable, 
well understood risk-sharing regime that has helped the growth of the 
U.S. commercial space launch industry over the intervening decade. The 
provision of limited indemnification has long been a cornerstone of our 
nation's approach to preserving a healthy and competitive launch 
industry.
  However, under the existing statute, these provisions will expire at 
the end of the current calendar year unless renewed. H.R. 2607 would 
extend those provisions for another five years. At our hearings this 
year, there has been a broad consensus on the need to renew the 
indemnification authority. I hope that we will do so today.
  In addition to the indemnification extension, the bill contains a 
number of other provisions that I am less enthusiastic about. For 
example, one finding of the bill would limit the Department of 
Transportation's ability to engage in non-regulatory activities that 
have done much to advance the state of the U.S. launch industry.
  In addition, there are funding levels in the bill for the Department 
of Transportation's Office of Commercial Space Transportation that may 
not be commensurate with the regulatory responsibilities that Congress 
has levied upon that Office. However, since I am confident that those 
concerns can be addressed in Conference, I did not see any reason to 
prevent the bill from being considered on the suspension calendar. In 
my opinion, it is important that we move this bill forward and ensure 
that the launch indemnification authority is renewed in a timely 
manner.
  Mr. HALL of Texas. Mr. Speaker, I rise in support of H.R. 2607.
  The U.S. commercial space launch industry currently leads the worlds, 
and we can all be proud of that.
  At the same time, U.S. companies face tough competition from overseas 
launch providers.
  And each of those non-U.S. companies have the support of their 
countries in sharing the risks associated with launching payloads into 
space.
  One of the important ways that we have been able to keep the 
commercial playing field level is through the indemnification 
provisions contained in the Commercial Space Launch Act, as amended.
  Unfortunately, those provisions are set to expire at the end of this 
year if they aren't renewed.
  H.R. 2607 will extend the indemnification provisions for another five 
years.
  I think that these provisions are critical to the continued health of 
the U.S. commercial space launch industry, and I urge my colleagues to 
support H.R. 2607.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I support H.R. 2607, the 
Commercial Space Transportation Competitiveness Act of 1999. This act 
will further support the development of America's commercial space 
transportation industry by bolstering our ability to compete in the 
international arena.
  The commercial launch industry has grown tremendously during the last 
decade. Our nation's companies hold close to 50 percent of the world 
market share, and most important, our launch vehicles have a strong 
reliability record. With the incredible leaps that we have experienced 
in the technology field, the use of commercial satellites has 
increasingly become more and more important. In addition both NASA and 
the Department of Defense are increasingly making use of commercial 
launch services. Most notable experts predict continued growth in the 
industry.
  As a Member of the House Science Committee, I attended the hearings 
that examined this bill and the barriers to commercial space launches. 
During those hearings, the space transportation industry expressed the 
opinion that we could do more. This bill begins to address these 
concerns and shows the industry that Congress has not lost focus on the 
bigger picture.
  The measure most often mentioned by the industry was the extension of 
the commercial space launch indemnification provision. Begun in 1988 by 
an amendment to the Commercial Space Launch Act, this measure 
significantly lowered the barriers to growth in the commercial space 
transportation industry. These amendments in the wake of the Challenger 
disaster put forth a risk-sharing regime. This indemnification between 
the Federal government and the commercial industry was designed to help 
transition and foster growth within the commercial industry.
  H.R. 2607 will provide for the extension of the Commercial Space 
Transportation Indemnification Extension. In addition, this act is 
asking the Transportation Department to examine and make a 
determination regarding a better risk-sharing regime.
  This bill is an important step but we need to continue to answer the 
questions of how the federal government can continue to facilitate 
growth in the commercial industry five to ten years from now. As 
technology continues to advance many of our constituents and the 
industries in our districts will want affordable access to space and in 
order to further open the space frontier America needs to have a strong 
commercial space transportation industry.
  Mr. LAMPSON. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. SENSENBRENNER. 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 Wisconsin (Mr. Sensenbrenner) that the House suspend the 
rules and pass the bill, H.R. 2607, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.




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