[Congressional Record Volume 150, Number 103 (Thursday, July 22, 2004)]
[Senate]
[Pages S8767-S8768]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INHOFE:
  S. 2772. A bill to promote the development of the emerging commercial 
human space flight industry, to extend the liability indemnification 
regime for the commercial space transportation industry, to authorize 
appropriations for the Office of the Associate Administrator for 
Commercial Space Transportation, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mr. INHOFE. Mr. President, I rise today to proudly introduce the 
Space Commercial Human Ascent Serving Expeditions Act also known as the 
Space CHASE Act.
  Because Oklahoma has significant history in aviation, I believe it is 
well positioned to be a leading State in the up-and-coming commercial 
space industry.
  Since 1910, beginning with Charles F. Willard who only flew a few 
hundred yards in a south Oklahoma City field, Oklahomans have been 
flying.
  The following year, Clyde Cessna, an automobile dealer from Enid who 
later formed the Cessna Aircraft Company, flew his mono-wing airplane 
near Jet, OK.
  Such early flights in Oklahoma continued and in 1929 perhaps one of 
the most notable aviation events occurred in Waynoka, OK, where Charles 
Lindbergh stopped on the first transcontinental passenger air and rail 
service.
  By 1931, Wiley Post, from Maysville, OK, gained international 
recognition when he flew around the world in a little over 8 days. In 
July 1991, I had the honor of recreating Post's trip on its 60th 
anniversary.
  Oklahoma's aviation history does not stop there. On November 2, 1929, 
26 licensed women pilots founded what was known as the 99 Club, or the 
Ninety-Nines. It was called so at the suggestion of its first 
president, Amelia Earheart, because of the 117 licensed women pilots in 
America who were contacted about joining the club, only 99 actually 
joined. The South Central Section of the 99 Club comprising several 
States including Oklahoma, has through the years, issued several 
publications and in 1962, Mary Lester of the Oklahoma Chapter created a 
new version of the Club's publication, the Ninety-Nine News. Today, the 
99 club is an international organization of licensed women pilots from 
35 countries, with its international headquarters at Will Rogers World 
Airport in Oklahoma City.
  In 1999, the Oklahoma State Legislature established the Oklahoma 
Space Industry Development Authority OSIDA to create a commercial 
spaceport that will ``expand and economically develop the space 
frontier with advanced spacecraft operating facilities.'' Furthermore, 
OSIDA's mission is to carry out this vision with ``. . . deliberate and 
forceful . . . planning and development of spaceport facilities, launch 
systems and projects, and to successfully promote and stimulate the 
creation of space commerce, education and space related industries in 
Oklahoma.''
  In March of 2001, I appealed to NASA, on behalf of the Oklahoma Space 
Industry Development Authority, to receive nearly a quarter of a 
million dollars in grant money. Part of this grant is paid for the 
opening of the Oklahoma Spaceport. My efforts to build a space industry 
in Oklahoma are coming to fruition with that March 2002 launch of 
``Dark Sky Station,'' from the Spaceport in Burns Flat. The rest of the 
money from the NASA grant went to nine other organizations around the 
State, dedicated to providing space-related education.
  I applaud OSIDA for this aggressive economic plan and, as a result, 
know of 15 companies that have entered into Memoranda of Understanding 
with OSIDA: Armadillo Aerospace; Space Development; XCOR Aerospace; 
Zero Gravity; Pioneer Rocketplane; Vela Technology; Rocketplane, Ltd.; 
JP Aerospace; TGV Rockets; JP Skylaunch; Space Adventures; Jim Schouten 
Enterprises; Universal Spaceliners; Takeoff Technologies; and Space 
Assets.
  Oklahoma is also home to business done by other such companies and 
entities as: Beyond-Earth Enterprises, which is helping to revitalize 
the passion of space travel by providing payload launch capabilities at 
affordable rates; the Global Space League, Inc., a 501(c)3 nonprofit 
institution which takes science experiments from students, kindergarten 
through university level, to remote places normally accessible only to 
professional scientists; and HighShips, which is in the business of 
developing innovative lighter-than-air flying vehicles.
  Several communities in southwestern Oklahoma stand to either benefit 
from, take part in, or have synergies with commercial space development 
including: Burns Flat which boasts the third longest runway in North 
America, Sayre, Frederick, Elk City, Hobart and Altus Air Force Base. I 
look forward to working with these communities in the future, such as 
with Oklahoma House District 63 Representative Don Armes.
  I encourage any and all companies and individuals who would like to 
become involved in the commercial space industry to come to 
southwestern Oklahoma. Oklahoma welcomes space industries with these 
features; Tax and Financial Incentives, Oklahoma Quality Job Program: 
Quarterly cash payments of 5% of new payroll for 10 years; Investment 
Tax Credit: Credit equal 1% of the investment in depreciable property 
for 5 years-doubles in this Enterprise zone; Sales/Use Tax Refund: 
Refunds tax paid on construction materials in new manufacturing 
facility; Property Tax Exemptions: 5-year abatement on 100 percent of 
property tax on new investment in manufacturing space; Sales/Use Tax 
Exemption: Available for machinery and equipment used in manufacturing, 
including property consumed; Accelerated Federal Property 
Depreciations: Provides approximately 40 percent shorter recovery 
period for depreciable property on Indian land.

  Training Incentives: Vocational Technology School free to employees; 
customized assistance in employee screening; job training partnership 
program.
  Financing: Oklahoma Finance Authority low cost loans; venture capital 
program facilitated by the agency; bonding by the agency; business 
financial assistance.
  Site Specifics: existing available buildings: Hangars, office space, 
maintenance, warehouses; over 13,500 feet runway, ramp space; 3,000 
acres of open space; utilities, infrastructure in place; rail spur, 
major Interstate Highway access; more than 340 days of clear skies; 
polar and ISS orbit launch windows available; no environmental issues; 
site geology supports any type of construction.
  Please come to Oklahoma to advance commercial space exploration and 
avail yourself of Oklahoma's benefits.
  Coming from Oklahoma's distinguished aviation heritage and innovative 
activity in the aerospace sector, as well as my experience as a 
commercially licensed pilot instructor, I rise today to introduce what 
I believe is a bill to benefit current and future aerospace companies 
in Oklahoma and throughout our entire Nation.
  This legislation came to fruition after I facilitated many 
negotiations between the Federal Aviation Authority, the House Science 
Subcommittee

[[Page S8768]]

on Space and Aeronautics, the Senate Commerce Committee, aerospace 
companies and the Oklahoma Space Industrial Development Authority.
  My language adds to H.R. 3752, the Commercial Space Launch Amendments 
Act of 2004, which updates the Commercial Space Launch Act of 1984, by 
accounting for a new class of sub-orbital launch vehicles that use 
hybrid technology--a combination of rocket and jet engines--to create a 
fair approach to future civilian suborbital flights.

  In this legislation to advance the commercial space community, I have 
successfully covered hybrid aerospace vehicles.
  By defining a sub-orbital vehicle as a rocket-propelled vehicle, ``in 
whole or in part, intended for flight on a sub-orbital trajectory, and 
whose thrust is greater than its lift for the majority of the rocket-
powered portion of its ascent,'' aerospace companies will now face less 
regulation than with previous definitions for this type of vehicle.
  Under my language, the FAA's Office of Commercial Space 
Transportation will now have sole regulation authority for sub-orbital 
hybrid vehicles, and will now be appropriately considered and licensed 
as launch vehicles. By this classification, aerospace companies such as 
Rocketplane, which utilizes hybrid technology, will now avoid being 
forced to go through a lengthy two-step licensing process formerly 
required for both launch vehicles and commercial aircraft and will have 
the opportunity to be licensed to carry civilian passengers much more 
quickly.
  In addition to the definition of sub-orbital flight, I am also proud 
of the indemnification and insurance provisions of this legislation 
which make it possible for small companies to enter into this business 
field, and am happy to create the new ``experimental permit'' 
framework.
  I know that my colleagues, House Science Space and Aeronautics 
Subcommittee Chairman Rohrabacher and Committee Chairman Boehlert, and 
their aide, Timothy Hughes, have worked diligently to update the 
Commercial Space Launch Act of 1984 by introducing and passing H.R. 
3752.
  I particularly want to thank my fellow Oklahoman and House Science 
Committee member Frank Lucas for requesting my involvement in this 
legislation, along with requests from Oklahoma State Senator Gilmer 
Capps, Oklahoma State Representative Jack Bonny, Oklahoma Lieutenant 
Governor Mary Fallon, and the Oklahoma Space Industry Development 
Authority, Congressman Lucas' colloquy with Chairman Boehlert on the 
floor the House of Representatives on March 4, 2004, speaks of his 
interest in ensuring that this very commercial space legislation 
include hybrid vehicles that fly a bit like rockets and a bit like 
airplanes:

       Mr. Boehlert. Mr. Chairman, I yield such time as he may 
     consume to the gentleman from Oklahoma (Mr. Lucas) for the 
     purposes of a colloquy.
       Mr. Lucas of Oklahoma. Mr. Chairman, I appreciate the 
     gentleman from New York (Mr. Boehlert) and the gentleman from 
     Tennessee (Mr. Gordon) bringing this important bill to the 
     floor, because the emerging commercial human space flight 
     industry presents tremendous opportunities for my State of 
     Oklahoma and our Nation as a whole. I am particularly 
     appreciative of this bill's intent to ease the regulatory 
     burdens for entrepreneurs who are developing new suborbital 
     reusable launch vehicles.
       Mr. Boehlert. Mr. Chairman, will the gentleman yield?
       Mr. Lucas of Oklahoma. I yield to the gentleman from New 
     York.
       Mr. Boehlert. Mr. Chairman, I thank the gentleman for his 
     kind words. He is correct in stating that this legislation 
     seeks to put in place sufficient Federal regulation to 
     protect the general public while also promoting this 
     important new industry.
       Mr. Lucas of Oklahoma. As you know, Mr. Chairman, some 
     suborbital reusable launch vehicles that will be used in 
     commercial human space flight activities may have some 
     attributes normally associated with airplanes as well as many 
     attributes of rockets. My hope is that such hybrid vehicles 
     would not have to be regulated under two separate regimes. 
     What are the chairman's views on this matter?
       Mr. Boehlert. I thank the gentleman for that question.
       This is a very important issue on which we have worked 
     extensively with industry and the executive branch in 
     developing this bill. As currently drafted, H.R. 3752 
     incorporates definitions promulgated by the Federal Aviation 
     Administration to distinguish between suborbital rockets, 
     which are under the jurisdiction of FAA's Associate 
     Administrator for Commercial Space Transport, and other 
     aerospace vehicles which are regulated by another part of the 
     FAA. That said, I would be happy to keep working with the 
     gentleman from Oklahoma (Mr. Lucas) and other interested 
     parties as the bill moves forward to revisit the important 
     issue of how best to regulate hybrid vehicles that are 
     engaged in commercial human space flight.
       Mr. Lucas of Oklahoma. I thank the chairman and I look 
     forward to continuing to work with him and our colleagues in 
     the other body to see if we can create a single regime for 
     hybrid commercial space flight vehicles.

  While I realize H.R. 3752 creates fairness in regulation for the 
newly emerging civilian space flight industry, I believe my language 
takes it a step further by ensuring all companies entering this field 
have a level licensing playing field including those using hybrid 
technologies.
  These are exciting times for this field of human endeavor. We are 
currently in the middle of a competition for the ANSARI X PRIZE. This 
competition is a courageous effort to refocus society's attention on 
the last frontier--space. To win the $10 million ANSARI X PRIZE, the 
successful team will launch a craft carrying at least three people to 
an altitude of at least 100 km, 62.5 miles, return safely to Earth, 
then repeat it with the same craft within 2 weeks.
  With pilot Mike Melvill, the Burt Rutan team made a flight on June 
21, 2004, but control problems prevented the repeat flight within the 2 
weeks.
  This brilliant concept of the Ansari X Prize exemplifies the 
excellence that can be achieved through an incentivized approach rather 
than a governmental mandate or punitive approach. Incentivize and 
safely get government out of the way is the philosophy of my bill. 
Tempt not only the pocketbook but the vision of anyone who has the 
creativity and imagination to pursue it.

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