[Congressional Record Volume 159, Number 169 (Monday, December 2, 2013)]
[House]
[Pages H7369-H7371]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SPACE LAUNCH LIABILITY INDEMNIFICATION EXTENSION ACT
Mr. SMITH of Texas. Mr. Speaker, I move to suspend the rules and pass
the bill (H.R. 3547) to extend the application of certain space launch
liability provisions through 2014.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3547
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 ``Space Launch Liability
Indemnification Extension Act''.
SEC. 2. INDEMNIFICATION EXTENSION.
Section 50915(f) of title 51, United States Code, is
amended by striking ``December 31, 2013'' and inserting
``December 31, 2014''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. Smith) and the gentlewoman from Texas (Ms. Eddie Bernice
Johnson) each will control 20 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. SMITH of Texas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days to revise and extend their remarks
and to include extraneous material on H.R. 3547, the bill now under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. SMITH of Texas. Mr. Speaker, I yield myself such time as I may
consume.
The bill we consider today provides stability for our Nation's
commercial launch providers so that they can remain competitive in the
international market.
The bill extends the existing system, which requires commercial
launch providers to purchase insurance up to the maximum probable loss.
It then provides that the government will compensate up to $1.5
billion, plus inflation, and any amount above that is the
responsibility of the original commercial launch provider.
Two weeks ago, the Space Subcommittee heard testimony from industry
experts about the need to extend the Commercial Space Launch Act's
risk-sharing system. Two of the witnesses who testified deal with this
law on a regular basis.
Mr. Stuart Witt, president of the Mojave Air and Space Port, is
developing new launch systems and technologies that could revolutionize
space by making it more accessible. He told the subcommittee that this
law allows companies to continue to innovate and grow.
Another witness, Ms. Patricia Cooper, president of the Satellite
Industry Association, represents companies that add billions of dollars
to the U.S. economy as a result of the current risk-sharing system. Ms.
Cooper testified that the system's continuation is ``absolutely
essential'' and that her association ``strongly recommends that it be
renewed before it expires.''
The committee also recently received a letter signed by DigitalGlobe,
Boeing, Virgin Galactic, Lockheed Martin, American Pacific Corporation,
Aerojet Rocketdyne, ATK, Ball, Honeywell, AMT II, and Orbital Sciences
which advocated the renewal of the risk-sharing system in order to keep
the U.S. competitive in the global market.
Last year, the Space and Aeronautics Subcommittee held a separate
hearing on indemnification and heard from the Federal Aviation
Administration, the Government Accountability Office, DigitalGlobe, and
the Aerospace Industries Association. At this hearing, Frank Slazer,
with the Aerospace Industries Association, summed up his trade
association's position by stating:
Many foreign launch providers competing against U.S.
companies already benefit from generous indemnification rules
. . . We cannot afford to drive away highly skilled technical
jobs to foreign countries, where the regulatory frameworks
provide better critical risk management tools. Lastly, a
nonrenewal could impede new U.S. entrants to the commercial
launch market, discourage future space launch innovation and
entrepreneurial investment. Without a level playing field for
competition, new U.S. entrants could find it highly
undesirable to begin their business ventures in the United
States.
The FAA launch indemnification authority has been in place for over
20 years, and the American commercial space industry has benefited
significantly over this time. Thankfully, the provision has never been
triggered by a serious accident, but the stability it provides allows
the U.S. to remain competitive in the global market and to push the
boundaries of space technology.
The bill before us would extend indemnification for 1 more year with
the hope that we can address a longer-term legislative solution. I
would have preferred a longer extension. For instance, the NASA
Authorization Act that the Science, Space, and Technology Committee
passed last summer extended indemnification for 5 years, but we now
have a bipartisan bill before us that provides stability to our
commercial space industry by protecting companies against third-party
liability claims.
This provision expires on December 31, so time is short. This bill
buys us time to work on a long-term extension as part of the larger
Commercial Space Launch Act renewal that we will take up next year. I
urge my colleagues to support this bipartisan legislation.
Mr. Speaker, I reserve the balance of my time.
Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I yield myself such
time as I may consume.
I rise today to speak in support of H.R. 3547, a bill to extend the
application of certain space launch liability provisions through 2014.
First established by Congress as part of the Commercial Space Launch
Act Amendments of 1988, the commercial space transportation risk-
sharing liability and insurance regime has been extended seven times
since its original enactment. The current extension expires on December
31 of this year, so it is important for Congress to act now so that
there is sufficient time for this legislation to make its way to the
President's desk before the current authority expires.
The liability and insurance regime that would be extended by this
legislation is three-tiered.
In the first tier, licensed commercial launch providers are required
to purchase third-party liability insurance to compensate for possible
losses from third-party claims by the uninvolved public up to the
maximum probable loss level determined by the Federal Aviation
Administration as part of its licensing process, or a maximum level of
$500 million.
In the second tier, for claims above those maximum probable losses,
the U.S. Government may pay successful liability claims up to $1.5
billion in 1989 dollars, or about $2.8 billion in today's dollars,
subject to funds being appropriated by Congress for that purpose.
In the third tier, for successful claims above the aforementioned
$2.8 billion, the licensee assumes responsibility for payment.
It should be noted that the U.S. Government has not appropriated a
single dollar to pay for the third-party claims in the two-decade
history of this program.
The existence of the liability risk-sharing regime has helped enable
the development and the sustainment of a commercial space launch
industry in the United States, including the emergence of several new
companies in recent years. In addition, the regime has
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allowed U.S. companies to remain competitive with their international
counterparts, almost all of whose governments provide similar or more
generous risk-sharing liability regimes to that of the U.S.
The commercial space transportation liability and insurance regime
has worked. It has not cost the American taxpayer a single dollar in
claims, and it has strengthened U.S. competitiveness in commercial
space launch--and this is not a blank check since any potential
payments for claims would be subject to prior congressional
appropriation.
The bill before us today extends the liability risk-sharing regime
for a period of 1 year. While that is less than some in the industry
would like, I believe it is an appropriate length. That is because much
has changed since the risk-sharing liability and indemnification regime
was established in 1988 and because the commercial space launch
industry continues to evolve over time.
Commercial providers are delivering spacecraft to orbit and
commercial resupply services to the international space station, and
companies are working hard toward providing commercial human
spaceflight. I am excited about the entrepreneurial spirit many of
these new companies exhibit, and I want them to succeed, but I also
want to ensure that the Nation's commercial space transportation
legislation reflects the changing industry and protects the American
public.
The commercial space industry has been evolving in ways that were not
envisioned when the risk regime was first established, and we need to
evaluate if changes are needed to this decades-old law. The 1-year
extension provides the Congress with the time to conduct necessary
hearings, perform our due diligence, and enable the enactment of a
comprehensive update to existing commercial space legislation.
Mr. Speaker, in closing, I would like to thank the chairman of the
Science, Space, and Technology Committee, Mr. Lamar Smith; the chairman
of the Space Subcommittee, Steve Palazzo; and the subcommittee's
ranking member, Donna Edwards, for cosponsoring this bill with me. This
is a good, bipartisan bill, and I urge Members to support it.
I reserve the balance of my time.
Mr. SMITH of Texas. Mr. Speaker, I yield 3 minutes to the gentleman
from California (Mr. Rohrabacher), who is the vice chairman of the
Science, Space, and Technology Committee.
Mr. ROHRABACHER. Mr. Speaker, I rise in strong support of H.R. 3547,
the Space Launch Liability Indemnification Extension Act.
I want to congratulate the chairman and the ranking member for again
demonstrating the type of bipartisan support that we have for
legitimate science and space projects here in the United States
Congress.
People say we can't work together. We can keep our eyes on the stars
and on the positive things, and we are working together. This piece of
legislation proves just that. It wasn't so long ago that there were a
lot of people who were skeptical about the commercial space industry,
and it is heartening to see that we now have gathered together to make
sure that our American entrepreneurs--our space entrepreneurs--are
successful and that they do, indeed, launch not only rockets into space
but launch a whole new industry, providing great jobs for the American
people into space and, thus, benefiting all of us. That is why it is a
bipartisan effort that we are talking about today.
Space launch liability indemnification is important for the American
launch industry, which is, once again, as I said, regaining a global
market share to maintain the global market expectations. It is also
important to maintain standards that have been long expected of
American companies. I fully support a deeper look into this issue,
which this legislation provides, because I know that our
indemnification structure is not just right for industry--it is right
for the American people.
{time} 1715
It is important to note that indemnification is not a one-way street
with the government just protecting industry. The original policy back
in 1988 was designed to protect the government as well as industry.
When companies buy the insurance required by law, they protect the
Federal Government against damages and against damage claims up to the
maximum probable loss.
I would also note that the requirement for commercial launch
providers to purchase insurance and protect the Federal Government
against its liability never expires. We should permanently extend the
space launch liability indemnification. I look forward to working with
the chairmen and ranking members to accomplish just that as we go into
next year.
I again rise in strong support and thank my colleagues for joining me
in this effort to make sure we launch this whole new industry for
America.
Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I yield 3 minutes to
the gentleman from California (Mr. Takano).
Mr. TAKANO. Mr. Speaker, I thank the ranking member for yielding me
time.
I rise today in support of H.R. 3547, the Space Launch Liability
Indemnification Extension Act.
As a proud member of the Science, Space, and Technology Committee, I
am encouraged to hear about the exciting and innovative ways that the
commercial space industry is pushing the bounds of space exploration.
The legislation on the floor today helps to ensure that the industry
will flourish and continue to create new, high-tech jobs.
In southern California, the Hawthorne-based SpaceX company employs
nearly 4,000 workers and has cemented itself as one of the premier
commercial space enterprises by developing several launch vehicles and
reusable spacecraft. In 2012, SpaceX successfully delivered cargo to
the international space station using its Dragon capsule.
The Mojave Space Port is another bright light in the commercial space
industry. At Mojave, more than 70 companies are working on highly
advanced aerospace design and flight test research. Just 2 months ago,
the Sierra Nevada Corporation completed its first free-flight test of
the Dream Chaser, a winged spacecraft that could one day take
astronauts to the international space station.
But as commercial space companies such as SpaceX, Sierra Nevada,
Virgin Galactic, and others continue to test new technologies, it is
important for the Federal Government to help alleviate some of the risk
involved in undertaking such projects. By providing third-party
indemnification, these companies can continue their work without
risking their entire assets. In fact, Russia, China, France, and Japan
all offer liability protections that exceed the United States'
standard. Without this important protection, some companies could be
forced to exit the market, costing the United States hundreds, if not
thousands, of high-tech jobs. We cannot allow that to happen.
I am proud to support this legislation so that American commercial
space companies can continue to grow and expand the possibilities of
what mankind can achieve. I urge my colleagues to support this bill.
Mr. SMITH of Texas. Mr. Speaker, we have no other speakers at this
time, and I reserve the balance of my time.
Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I yield 5 minutes to
the gentlelady from Maryland (Ms. Edwards).
Ms. EDWARDS. Mr. Speaker, I probably will not use all of the 5
minutes, but I wanted to be here today, Mr. Speaker, to support H.R.
3547, the Space Launch Liability Indemnification Extension Act, of
which I am an original cosponsor.
I want to thank both our chairmen--the chairman of our subcommittee,
Mr. Palazzo, and Chairman Smith--and, of course, our ranking Democrat
on the committee, Ms. Johnson, because we would not have been able to
get to this point if we hadn't been able collectively, across the
aisle, to work on a 1-year extension that would be provided for in
Commercial Space Launch Act Amendments of 1988 that established the
government-private risk-sharing regime for third-party liability.
Should a launch accident occur, the effects that involve the public and
property on the ground in this indemnification provision would cover
such losses.
It turns out that commercial space launch capacity in the industry is
really at a critical point in our Nation's development of our space
infrastructure. Both the Federal and commercial
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customers rely on commercial space launch, the industry for safe,
reliable, and effective service, and delivering payloads in orbit and
providing related space transportation services.
Just recently, in September of this year, a commercial space launch
provider successfully lofted a cargo capsule into space to carry
supplies to the international space station. This is exactly what we
have in mind when we talk about integrating our commercial launch
capacity with what we do already at NASA in terms of our scientific
endeavors.
Mr. Speaker, commercial space transportation services have really
always been carried out in partnership with the United States
Government through the use of Federal launch ranges and services, for
example, and through the government risk-sharing regime for protecting
the uninvolved public and property should an accident occur. So it
seems quite fitting that we have reached this point today.
Unfortunately, the reason that we are only able to do a 1-year
extension and can agree on that is because there are also some other
things that we need to figure out for the future with respect to the
involvement of the commercial industry. It is my hope that over the
course of this 1 year we will use that time wisely here in the Congress
to have the kind of oversight hearings that we need to bring in the FAA
so that we can make sure that we are venturing in this direction in the
right kind of way that really takes into consideration what we are
doing in the 21st century.
New entrants are delivering spacecraft to orbit, commercial resupply
services to the international space station, and companies are working
toward providing commercial human spaceflight on both reusable
suborbital vehicles and orbital human spaceflight systems.
In fact, although I have been, admittedly, a skeptic, I am excited
about the potential of the industry and I want it to succeed. Just last
year, in a hearing on launch indemnification before the committee's
Space Subcommittee of which I am the ranking member, a senior official
representing the Aerospace Industries Association characterized the
continuation of U.S. space launch indemnification as providing
``substantial upside potential to enable new markets, create jobs, and
assure U.S. space technology leadership for the 21st century.''
It is easy to see how that upside is both national and local in
scope. The launch capability at nearby Wallace air facility on the
eastern shore is becoming a critical link to resupplying the
international space station.
Commercial space companies make investments in our economy and create
jobs all across the country. Specifically, in my home State of
Maryland, companies like Lockheed Martin, Orbital, and Northrop Grumman
employ thousands of people in my district alone creating high-tech
jobs, high-skilled jobs in the local community. ATK is a leading
aerospace provider and has its main headquarters right up in
Beltsville, Maryland, not very far from here.
Mr. Speaker, I want to ensure that our legislation and policies
regarding commercial space transportation reflect the changing
industry, changes and activities that may not have been contemplated
when the liability indemnification regime was first established. This
1-year extension provides Congress the opportunity to consider any
potential changes that might be needed to ensure the continued safety
of the public.
Mr. Speaker, I urge our colleagues to join us today in supporting
H.R. 3547.
Mr. SMITH of Texas. Mr. Speaker, I am prepared to yield back the
balance of my time if the gentlewoman from Texas (Ms. Johnson) is
prepared to yield back her time.
Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I have no further
requests for time.
I urge support of the bill, and I yield back the balance of my time.
Mr. SMITH of Texas. Mr. Speaker, I yield back the balance of my time.
Ms. JACKSON LEE. Mr. Speaker, I rise in strong support of H.R. 3547,
the Space Launch Liability Indemnification Extension Act.
The United States space program has existed for over half a century
and my commitment to providing NASA with the resources to carry the
agency forward with its ambitious agenda of research, exploration, and
discovery is unwavering.
In June 2012, the Federal Aviation Administration (FAA) and NASA
signed an agreement to coordinate standards for commercial space travel
of government and non-government astronauts to and from low-Earth orbit
and the International Space Station (ISS).
The FAA regulates and licenses all U.S. private companies and
individuals seeking to engage in commercial space transportation. The
FAA's Office of Commercial Space Transportation has licensed 207
successful launches, including two non-orbital commercial human space
flights in 2004 and the recent first launch to the ISS and re-entry of
a non-manned commercial spacecraft. For details on FAA commercial space
transportation responsibilities, visit:
The two agencies agreed to join efforts to expand commercial and non-
commercial space exploration by creating a framework for the U.S. space
industry. The two agencies will be able to avoid conflict regarding
requirements and standards for the purpose of advancing both public and
crew safety.
This is an important collaboration that for the private sector is a
good sign for companies seeking to reap commercial benefits that may be
found in spaceflight investments.
NASA continues to push the boundaries of what is possible, keeping
our Nation on the forefront of innovation and exploration. It is the
responsibility of this Congress to ensure that the future of NASA is
one of continued progress.
Space exploration remains a part of our national destiny. It inspires
our children to look to the stars and dream of what they too, one day,
may achieve. Space exploration allows us to push the bounds of our
scientific knowledge, as we carry out research projects not possible
within the constraints of the planet Earth.
Because of the ground breaking work of NASA commercial applications
for space, such as commercial satellites have become critical for
mobile communication services.
Smartphones rely upon commercial satellite to function, which makes
possible the communication revolution we are witnessing today.
Today, the ground work done to advance knowledge regarding space
exploration has reached a point where private sector companies are
exploring ways to commercialize space exploration.
For example, Companies like Virgin now operates Virgin Galactic has
completed its second test flight for commercialization of space travel
and is selling passenger tickets for its first flight. However, we must
still fully fund NASA and U.S. public space exploration.
A critical milestone for space exploration will be successful
commercial efforts to provide services or develop new methods of
manufacturing that are space based or the exploration of neighboring
bodies for discovery of rare earth minerals or discovery of more
abundant sources of elements or resources that can aid human
development.
H.R. 3547, the Space Launch Liability Indemnification Extension Act
provides a means of making it possible for private companies to pursue
commercial space projects.
I ask my colleagues to support this effort to make the next step in
human development of space a successful one by joining me in voting in
support of H.R. 3547, the Space Launch Liability Indemnification
Extension Act.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Smith) that the House suspend the rules and
pass the bill, H.R. 3547.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. SMITH of Texas. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
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