[Senate Report 104-327]
[From the U.S. Government Publishing Office]




                                                       Calendar No. 506
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-327
_______________________________________________________________________


 
   NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AUTHORIZATION ACT, 
                           FISCAL YEAR 1997

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1839




                 July 22, 1996.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred fourth congress
                             second session

  LARRY PRESSLER, South Dakota, 
             Chairman
ERNEST F. HOLLINGS, South Carolina   TED STEVENS, Alaska
DANIEL K. INOUYE, Hawaii             JOHN McCAIN, Arizona
WENDELL H. FORD, Kentucky            CONRAD BURNS, Montana
J. JAMES EXON, Nebraska              SLADE GORTON, Washington
JOHN D. ROCKEFELLER IV, West VirginiaTRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts         KAY BAILEY HUTCHISON, Texas
JOHN B. BREAUX, Louisiana            OLYMPIA J. SNOWE, Maine
RICHARD H. BRYAN, Nevada             JOHN ASHCROFT, Missouri
BYRON L. DORGAN, North Dakota        BILL FRIST, Tennessee
RON WYDEN, Oregon                    SPENCER ABRAHAM, Michigan
  Patric G. Link, Chief of Staff
Kevin G. Curtin, Democratic Chief 
    Counsel and Staff Director


                                                       Calendar No. 506
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-327
_______________________________________________________________________


NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AUTHORIZATION ACT, FISCAL 
                               YEAR 1997
                                _______
                                

                 July 22, 1996.--Ordered to be printed

_______________________________________________________________________


      Mr. Pressler, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1839]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1839) ``To authorize 
appropriations for fiscal year 1997 to the National Aeronautics 
and Space Administration for human space flight; science, 
aeronautics, and technology; mission support; and Inspector 
General; and for other purposes'', having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.

                          Purpose of the Bill

  The purpose of the bill is to authorize appropriations to 
NASA totalling $13,702,600,000 for fiscal year (FY) 1997 as 
follows:

------------------------------------------------------------------------
                                                           Committee    
              FY 1997                Budget  request     authorization  
------------------------------------------------------------------------
Space Flight......................           $5,354.6           $5,354.6
Science, Aeronautics, and                                               
 Technology.......................            5,862.1            5,760.5
Mission Support...................            2,570.5            2,570.5
Inspector General.................               17.0               17.0
                                   -------------------------------------
      Total.......................           13,804.2           13,702.6
------------------------------------------------------------------------

                          Background and Needs

  In the past, the main challenges NASA faced were 
technological. Today, NASA faces new challenges which are 
budgetary as well as technical, but no less daunting than the 
Apollo missions to the Moon. To the credit of the space agency, 
rather than merely agonize about the current budget challenge 
faced by the Federal Government, NASA has confronted the budget 
problem directly. Last year, NASA developed an ambitious 
budget-cutting plan to reduce its budget by $4 billion between 
fiscal years 1997 and 2000. Under the plan, NASA funding would 
drop from its current level of $13.9 billion to $11.6 billion 
by the year 2000.
  In seeking to implement its plan, over the last two years 
NASA has conducted a comprehensive review of its entire 
operation to identify potential areas for cost savings, begun 
new technology programs to reduce the cost of access to space 
and of space science and exploration missions, and committed to 
reducing its workforce from 25,000 full time equivalents (FTEs) 
to 17,500 by the year 2000. There is broad appreciation for the 
difficulty in making these budget cuts while at the same time 
fulfilling its commitment to major multi-billion-dollar 
initiatives like Space Station and Mission to Planet Earth. To 
many, it appears that NASA's budget is barely sufficient to 
sustain its core missions and that further cuts by Congress 
might prevent the agency from realizing its bold visions in 
space science and exploration.
  To meet successfully these new budget and program challenges, 
NASA cannot settle for marginal changes, but must reassess its 
traditional ways of doing business. In carrying out its goals 
and missions, NASA will need to make more use of cost-sharing 
partnerships with industry, academia, and non-federal entities 
as well as with other spacefaring nations. The agency will also 
need to explore the possibilities of privatizing those 
activities that can be more cost-effectively performed by the 
private sector and of purchasing goods and services on a 
commercial basis when appropriate. Equally important, in 
justifying its budget, NASA must make special efforts to ensure 
that its missions and programs are relevant, not just to the 
narrow group of individuals and interests directly involved, 
but to the general public. For instance, the global climate 
change research of Mission to Planet Earth, if managed 
properly, has the potential to make enormous impacts in the 
work of real people in such diverse areas as agriculture, 
forestry, mineral exploration, water resource management, and 
land use planning. Similarly, NASA's space education and 
outreach activities like the Experimental Program to Stimulate 
Competitive Research, the Teacher Resource Centers, and the 
Space Grant Program have proven very effective in giving 
citizens of all ages and backgrounds, as well as a broad range 
of government, private sector, and academic institutions, a 
stake in the U.S. space program and our ongoing technological 
revolution.
  As NASA deals with these and other budgetary and programmatic 
challenges, it is important that safety be a top priority. 
However, it is equally critical that safety issues not be used 
as an excuse to avoid taking technological risk, but instead 
legitimately raised out of concern for the lives of the people 
who make the U.S. space program a success. Risk assessment and 
management will take on increasing importance in the upcoming 
decade when the International Space Station effort will require 
astronauts to perform an unprecedented amount of spacewalking 
to build, maintain, and operate the space facility and will 
force the Space Shuttle to satisfy a challenging launch 
schedule.
  Even within current federal budget constraints, NASA requires 
a certain minimal level of funding to plan and carry out the 
bold space activities that historically have defined the 
agency. Funding must be sufficient to support core ongoing 
programs as well as new initiatives to address future aerospace 
needs. This authorization legislation for FY 1997 is intended 
to provide the agency with the funding and policy guidance to 
maintain a robust and balanced space program in this 
environment.
  The rapidly growing commercial space launch industry also is 
facing new challenges as conventional expendable launch 
vehicles may soon be joined by vehicles with reentry 
capabilities and other new technologies. A major factor in the 
development of that industry was the enactment of legislation 
establishing an appropriate regulatory scheme for licensing 
commercial launches and setting the insurance requirements for 
launch providers. The Commercial Space Launch Act of 1984, as 
amended (CSLA), specifically authorizes the Department of 
Transportation (DOT) to license all U.S. commercial launches 
and establish insurance requirements for commercial launch 
providers as a condition of receiving a license. The insurance 
requirements were intended to protect against risks to 
Government property and against damages to third parties that 
might result from launch mishaps. However, these requirements 
also were intended to limit the potential liability of the 
providers and thereby encourage their entry into the emerging 
commercial launch market. Under the present regulatory regime, 
the provider is required to purchase insurance up to a DOT-
determined level, with the federal government indemnifying the 
provider for liability above that level up to a specified 
ceiling. Unfortunately, the commercial use of reentry vehicles, 
the operation of reentry sites, and the possibility of 
commercial in-space activities were not contemplated when the 
CSLA was enacted. Accordingly, questions have been raised about 
whether these activities are covered by the existing regulatory 
scheme authorized by the CSLA. Amendments to the CSLA are 
required to clarify the regulatory and licensing authority of 
the DOT over these matters and to allow providers of these new 
activities to participate in the risk management structure 
established by the CSLA. This legislation is intended to make 
those clarifying amendments and, by so doing, equip DOT to 
address critical public safety issues and enhance the 
competitiveness of the U.S launch industry as new space 
transportation systems and facilities enter the global 
marketplace.

                          Legislative History

  On March 18th, the Administration submitted its FY 1997 
budget request for NASA to the Congress. The Subcommittee on 
Science, Technology, and Space held two oversight hearings on 
NASA's programs. On March 26th, the Subcommittee held a hearing 
on the FY 1997 budget and programs of NASA, at which testimony 
was heard from NASA Administrator Daniel S. Goldin. 
Subsequently, on May 16th, a hearing was held on the Mission to 
Planet Earth program. At that hearing, the Subcommittee heard 
testimony from Dr. Charles Kennel, NASA's Associate 
Administrator for Mission to Planet Earth; Mr. Robert S. 
Winokur, Assistant Administrator for Satellite and Information 
Services, National Oceanic and Atmospheric Administration; Dr. 
Don Lauer, Chief, EROS Data Center, Sioux Falls, South Dakota; 
Dr. Frank Carsey, Chief Scientist, Alaska Synthetic Aperture 
Radar Facility; Dr. George Seilestad, University of North 
Dakota (Aerospace Activities); and Mr. David Radzanowski, 
Aerospace Policy Analyst, Congressional Research Service. In 
addition, the Subcommittee was shown a NASA demonstration of 
the Earth imagery from the Mission to Planet Earth program 
which highlighted its many practical applications.
  On June 5th, Chairman Pressler, along with Senators Burns and 
Stevens, introduced S. 1839, a bill to authorize appropriations 
for NASA for FY 1997. On June 6th, the Committee met in open 
executive session and, on a voice vote, ordered the bill 
reported with one amendment. That amendment, offered by Senator 
Rockefeller, requires NASA to develop a strategic plan for its 
educational activities relating to the International Space 
Station program.

                      Summary of Major Provisions

  For FY 1997, the bill, as reported, authorizes a total of 
$13,702,600,000 for NASA.

                           NASA AUTHORIZATION

  The $13,702,600,000 authorized for NASA is allocated among 
its major accounts as follows: $5,354,600,000 for Human Space 
Flight, $5,760,500,000 for Science, Aeronautics, and 
Technology; $2,570,500,000 for Mission Support, and $17,000,000 
for the Office of the Inspector General.

    SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION--NASA BUDGET SPREAD SHEET FOR FISCAL YEAR 1997    
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                                                                     Proposed   
                                                                    Fiscal year     Fiscal year     fiscal year 
                                                                       1996        1996 request     1997 Senate 
                                                                   appropriation                   authorization
----------------------------------------------------------------------------------------------------------------
I. Human Space Flight...........................................         5,456.6         5,354.6         5,354.6
    1. Space Station............................................         1,863.6         1,802.0         1,802.0
    2. US/Russian Cooperation Program...........................           129.2           138.2           138.2
    3. Space Shuttle............................................         3,148.8         3,142.6         3,142.6
    4. Payload and Utilization Operation........................           315.0           271.8           271.8
II. Science, Aeronautics, and Technology........................         5,845.9         5,862.1         5,760.5
    1. Space Science............................................         2,032.6         1,857.3         1,797.7
        AXAF....................................................           237.6           178.6           178.6
        Cassini.................................................           191.5           106.7           106.7
        Gravity Probe B.........................................            51.5            59.6             0.0
        Payload and Instrument Development......................            30.7            16.9            16.9
        Explorers...............................................           132.2           135.0           135.0
        Discovery Program.......................................           102.2            74.8            74.8
        Mars Surveyor Program...................................           111.9            90.0            90.0
        New Millennium Spacecraft Program.......................            30.0            21.5            21.5
        Mission Operations and Data Analysis....................           563.8           592.4           592.4
        Supporting Research and Technology......................           238.9           259.2           259.2
            SIRTF...............................................            10.0            24.9            24.9
            TIMED...............................................            15.0            15.0            15.0
        Suborbital Program......................................            88.0            69.1            69.1
            SOFIA...............................................            30.0            26.3            26.3
        Launch Services.........................................           254.3           253.5           253.5
    2. Life and Microgravity Sciences and Applications..........           488.5           498.5           498.5
    3. Mission to Planet Earth..................................         1,289.4         1,402.1         1,402.1
        EOS.....................................................           535.3           585.7           585.7
            EOS-AM Series.......................................           170.0            84.7            84.7
            EOS-PM Series.......................................           101.8           171.2           171.2
            Chemistry Spacecraft................................            27.3            77.4            77.4
            Special Spacecraft..................................            71.7            66.7            66.7
            New Millennium Program..............................            10.0            10.0            10.0
            Landsat 7...........................................            78.8            73.9            73.9
            Algorithm Development...............................            75.7           101.8           101.8
        EOSDIS..................................................           241.2           261.1           261.1
        Earth Probes............................................            46.0            47.1            47.1
            TOMS................................................             8.5             2.6             2.6
            TRMM................................................            24.2            20.9            20.9
            Earth System Science Pathfinders....................             1.0            20.0            20.0
            Experiments of Opportunity..........................             4.6             3.6             3.6
        Applied Research and Data Analysis......................           337.8           379.1           379.1
            MTPE Science........................................           248.2           277.1           277.1
                Data Purchase...................................  ..............            50.0            50.0
                Upper Plains States' Hydrology Research Program.             0.0             0.0         \1\ 5.0
                Upper Midwest Aerospace Consortium Program......             0.0             0.0             5.0
            Operations, Data Retrieval, and Storage.............            89.6           102.0           102.0
        Global Observations to Benefit the Environment (GLOBE)..             5.0             5.0             5.0
        EOS Launch Services.....................................           107.1           124.1           124.1
    4. Aeronautical Research and Technology.....................           845.9           857.8           857.8
        Yokoh Public Outreach Program...........................             0.2             0.2             0.2
    5. Space Access and Technology..............................           641.3           725.0           683.0
        Advanced Space Transportation...........................           188.5           324.7           324.7
            X-33................................................            49.0           251.1           251.1
            X-34................................................            30.0            15.0            15.0
            Advanced Space Transportation Technology Program                                                    
             (ASTT).............................................  ..............            42.0             0.0
        Radar Satellite Program.................................             0.0             0.0        \2\ 35.0
        Rural Technology Transfer and Commercialization Center..             0.0             0.0             5.0
    6. Mission Communication Services...........................           441.3           420.6           420.6
    7. Academic Programs........................................           106.9           100.8           100.8
        Pavilion Regional Science Outreach Center...............             0.0             0.0             2.0
        EPSCoR..................................................             4.9             4.5        \3\ 10.0
        Rural Teacher Resource Center...........................             0.0             0.0             1.0
III. Mission Support............................................         2,502.2         2,570.5         2,570.5
    1. Safety, Reliability and Quality Assurance................            37.6            36.7            36.7
    2. Space Communication Services.............................           269.4           291.4           291.4
    3. Research and Program Management..........................         2,052.8         2,078.8         2,078.8
    4. Construction of Facilities...............................           142.4           163.6           163.6
IV. Inspector General...........................................            16.0            17.0            17.0
                                                                 -----------------------------------------------
      Totals....................................................        13,820.7        13,804.2        13,702.6
----------------------------------------------------------------------------------------------------------------
\1\ $5 million is included for this scientific investigation, which is part of the GEWEX program.               
\2\ $35 million is included for phase A and B studies for new radar satellite program.                          
\3\ Help for states which are primarily rural or sparsely populated.                                            

                             Space Station

  The reported bill authorizes the full $1,802,000,000 
allocated in the President's FY 1996 budget request for the 
International Space Station Program. This authorization level 
should permit NASA to maintain its current schedule which calls 
for a first element launch in 1997 and completion of 
construction in the year 2002. The bill also provides the full 
funding for three of the total of nine planned Shuttle missions 
to the Russian space station Mir between 1995 and 1997. The 
Shuttle-Mir missions will help NASA and its international 
partners prepare for the construction of the Space Station, 
which is scheduled to begin in late 1997.

                             Space Shuttle

  The reported bill authorizes the requested level of 
$3,142,600,000 for the Space Shuttle program. This level should 
enable NASA to undertake seven Shuttle missions during FY 1997. 
The authorization will also support NASA's programs to improve 
and upgrade the Shuttle orbiters to enhance their performance 
and safety. The authorization, like the budget request, assumes 
cost savings made possible by the implementation of measures 
recommended by the earlier comprehensive review of the Shuttle 
program in FY 1995. These measures include reductions in the 
Shuttle flight rate and program content, increases in 
efficiency, and the transition to a consolidation of Shuttle 
operations contracts under one prime contractor. Full funding 
in FY 1997 is essential to the safe and effective operation of 
the Shuttle system as NASA transfers increased responsibility 
to the U.S. Space Alliance joint venture which has been 
designated to manage the program in the future.

                   Payload and Utilization Operations

  The reported bill authorizes the requested level of 
$271,800,000 for Payload and Utilization Operations. This 
account supports the processing and flight of shuttle payloads, 
efforts to reduce operations costs, and the implementation of 
flight and ground systems improvements. Also supported is the 
Spacelab, a reusable laboratory facility placed in the Space 
Shuttle to perform science and technology experiments.

                             Space Science

  The reported bill authorizes $1,797,700,000 for the Space 
Science account. The funding level will permit a continuation 
of NASA's ongoing space science activities in physics, 
astronomy, and planetary exploration, including the Advanced X-
ray Facility (AXAF), the Explorer program, the Cassini mission 
to Saturn, the Discovery program, the Mars Surveyor mission, 
the Stratospheric Observatory for Infrared Astronomy (SOFIA), 
and the Space Infrared Telescope Facility (SIRTF). The bill 
also supports the budget request for the New Millennium 
program, an important initiative begun last year to develop 
technologies that will enable more frequent and less costly 
space missions on smaller spacecraft. The Space Science 
authorization level assumes no FY 1997 funding for the Gravity 
Probe-B (GPB) program, for which $59,600,000 are allocated in 
the President's budget request. The deletion reflects a 
persistent ambivalence within the scientific community about 
the merit of GPB relative to that of other space science 
projects.

             Life and Microgravity Science and Applications

  The reported bill authorizes $498,500,000 for the life and 
microgravity sciences and applications program aimed at using 
the space environment to understand better the response of 
biological and materials systems to weightlessness. The 
authorized level will support continuation of NASA's ongoing 
research in the space biological, physical, and chemical 
sciences, and related work in technology development and 
applications. The life sciences and microgravity research 
conducted on Shuttle missions scheduled for fiscal year 1997 
will provide a preview for the research planned for the 
International Space Station.

                        Mission to Planet Earth

  The reported bill authorizes $1,402,100,000 to fully fund 
Mission to Planet Earth, NASA's effort to employ the latest 
satellite technology to understand and predict the global 
climate trends that affect our daily lives. Mission to Planet 
Earth is NASA's contribution to the multiagency U.S. Global 
Change Research Program. The authorized amount assumes full 
funding for each of the program's main components, including 
the Earth Observing System (and Landsat), the Earth Observing 
System Data and Information System (EOSDIS), and Earth Probes.
  The bill's authorization for Mission to Planet Earth also 
includes funding for two new university-led rural consortia. 
The Upper Missouri River Basin project would conduct hydrology 
studies in this flood-plagued region, and the Upper Midwest 
Aerospace Consortium project would convert satellite data for 
Mission to Planet Earth into useful information for the Upper 
Plains States region. Because of the importance of the EOSDIS 
to the successful collection, management, processing, and 
dissemination of the satellite data from Mission to Planet 
Earth, the bill expressly prohibits any downscaling or 
restructuring of the current baseline plan for EOSDIS without 
60 days prior notification to the Senate Commerce and House 
Science Committees.

                  Aeronautical Research and Technology

  The reported bill authorizes the full requested level of 
$857,800,000 for NASA's Aeronautical Research and Technology 
program. This program is dedicated to ensuring U.S. leadership 
in aeronautics and promoting and facilitating the transfer of 
aeronautics technology to industry and government agencies such 
as the Department of Defense and the Federal Aviation 
Administration in order to promote better civilian and military 
aircraft and a safer national air space system. The authorized 
level will support continuation of the baseline program, 
including its subsonic, high-speed, and hypersonic research 
activities.

                      Space Access and Technology

  The reported bill authorizes $683,000,000 for Space Access 
and Technology, a decrease of $42 million from the requested 
level. NASA's Space Access and Technology program is intended 
to stimulate the development of advanced space technologies to 
improve U.S. industrial competitiveness. Included within the 
authorization is the Reusable Launch Vehicle (RLV) program 
approved last year. The RLV program is aimed at developing and 
flight testing the technologies that may lead to the eventual 
development of a replacement of the Space Shuttle. Incorporated 
within the RLV effort are three separate but related 
experimental flight demonstrator programs: the DC-XA, the X-34 
Small Reusable Launch vehicle, and the X-33 Advanced Technology 
Demonstrator. These activities will develop the key component 
technologies needed to make dramatic reductions in the cost of 
access to space. The bill also provides $35 million for design 
and feasibility studies, as well as subsequent development and 
operations work, for a new radar satellite initiative. The 
bill's $42 million reduction from the budget request for the 
Space Access and Technology account is based on the Committee's 
decision not to authorize the new Advanced Space Transportation 
Technology (ASTT) program, an activity proposed in the FY97 
budget request that would develop advanced, high-risk 
technology to complement the RLV effort. The cut reflects the 
Committee's belief that some of the ASTT activities could be 
performed as part of either the RLV program or the Engineering 
and Technical Base program within the Office of Space Flight 
and that the tight budget climate precludes the authorization 
of any new starts for FY 1997.

                    Mission Communications Services

  The reported bill authorizes Mission Communications Services 
at the President's budget request of $420,600,000. This 
authorized level will provide sufficient support for NASA's 
vast ground and space-based communications systems, which are 
essential to every NASA space mission.

                           Academic Programs

  The reported bill authorizes NASA's Academic Programs at the 
President's budget request of $100,800,000. NASA's Academic 
Programs have played an important role in sustaining U.S. 
academic achievement in mathematics and science and 
strengthening mathematics and science education at all levels, 
from pre-college through graduate school. This funding level 
should continue NASA's major activities in this account. Within 
that authorization, $10 million are allocated for the 
Experimental Program to Stimulate Competitive Research 
(EPSCoR), a substantial increase over the budget request of 
$4.5 million. NASA's EPSCoR is a critical source of funds for 
important academic space science research being conducted in 
our rural states. The authorization also allocates $2 million 
for the science education and outreach project for the Upper 
Plains States region, for which NASA made a funding commitment 
in FY 1996.

               Safety, Reliability, and Quality Assurance

  The reported bill authorizes the President's budget request 
of $36,700,000 for the Safety, Reliability, and Quality 
Assurance programs, which are designed to develop and implement 
risk management practices throughout NASA.

                      Space Communications Systems

    The reported bill authorizes the full requested level of 
$291,400,000 for NASA's Space Communications Systems. This 
account supports the tracking, telemetry, data acquisition, and 
data processing activities for all NASA spacecraft. Included 
among these activities is the Tracking and Data Relay Satellite 
(TDRS) program, which provides operational support for NASA and 
other domestic and international users of NASA's Space Network 
for space communications purposes. The authorization also 
supports the TDRS replenishment program to develop a new series 
of tracking satellites, the first of which is scheduled for 
launch in 1999.

                    Research and Program Management

    The reported bill authorizes $2,078,800,000 for the 
Research and Program Management account at NASA. This account 
funds the salaries, travel expenses, and other administrative 
expenses for NASA's personnel. The authorization assumes 
funding for implementation of the buyout authority in the bill 
intended to encourage voluntary personnel separations to help 
implement workforce reductions with minimal use of reductions-
in-force.

                       Construction of Facilities

    The reported bill authorizes the full requested level of 
$163,600,000 for the Construction of Facilities account to fund 
the repair and upgrade of existing facilities and the 
construction of new facilities.

                           Inspector General

    The reported bill authorizes the President's budget request 
of $17,000,000 for the Office of the Inspector General, which 
is a statutorily-created independent organization within NASA 
charged with investigating cases of fraud, waste, and abuse at 
the agency.

                 commercial space launch act amendments

    The reported bill makes changes in the organic act for the 
DOT's Office of Commercial Space Transportation to expand that 
agency's licensing authority to cover re-entry vehicles, re-
entry sites, and in-space transportation. The bill also 
prohibits the Department of Transportation from issuing or 
transferring any license for the launch of a payload containing 
material to be used for obtrusive advertising in space.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and Section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 25, 1996.
Hon. Larry Pressler,
Chairman, Committee on Commerce, Science, and Transportation U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1839, the National 
Aeronautics and Space Administration Authorization Act, Fiscal 
Year 1997.
    Enactment of S. 1839 would affect direct spending and 
receipts. Therefore, pay-as-you-go procedures would apply to 
the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

    1. Bill number: S. 1839.
    2. Bill title: National Aeronautics and Space 
Administration Authorization Act, Fiscal Year 1997.
    3. Bill status: As ordered reported by the Senate Committee 
on Commerce, Science, and Transportation on June 6, 1996.
    4. Bill purpose: S. 1839 would authorize fiscal year 1997 
appropriations for the National Aeronautics and Space 
Administration (NASA) and establish terms and conditions under 
which NASA could offer incentives to employees who voluntarily 
separate from federal service over the 1997-2000 period. The 
bill also would expand the scope of licensing of commercial 
space launch activities by the Office of Commercial Space 
Transportation (OCST) in the Department of Transportation (DOT) 
to include in-space transportation and reentry, launch and 
recovery sites, and space advertising.
    5. Estimated cost to the Federal Government: As shown in 
the following table, S. 1839 would authorize appropriations 
totaling $13.7 billion for 1997. CBO estimates that the 
employee separation incentives would affect direct spending 
over the 1997-2000 period, but the net budgetary impact over 
that period would not be significant. The impact on revenues of 
civil penalties under OCST's expanded licensing activities also 
would be insignificant.

----------------------------------------------------------------------------------------------------------------
                                        1996       1997       1998       1999       2000       2001       2002  
----------------------------------------------------------------------------------------------------------------
                                                 DIRECT SPENDING                                                
                                                                                                                
Spending under current law:                                                                                     
    Civilian retirement benefits:                                                                               
        Estimated budget authority.     39,120     41,146     43,067     45,057     47,062     49,149     51,316
        Estimated outlays..........     39,041     41,064     42,980     44,967     46,968     49,051     51,214
    Receipt of agency                                                                                           
     contributions:                                                                                             
        Estimated budget authority.    -15,702    -16,164    -16,627    -16,883    -17,616    -18,255    -19,128
        Estimated outlays..........    -15,702    -16,164    -16,627    -16,883    -17,616    -18,255    -19,128
Proposed changes:                                                                                               
    Civilian retirement benefits:                                                                               
        Estimated budget authority.  .........          4          8          4      (\1\)      (\1\)      (\1\)
        Estimated outlays..........  .........          4          8          4      (\1\)      (\1\)      (\1\)
    Receipt of agency                                                                                           
     contributions:                                                                                             
        Estimated budget authority.  .........         -8         -8  .........  .........  .........  .........
        Estimated outlays..........  .........         -8         -8  .........  .........  .........  .........
Spending under S. 1839:                                                                                         
    Civilian retirement benefits:                                                                               
        Estimated budget authority.     39,120     41,150     43,075     45,061     47,062     49,149     51,316
        Estimated outlays..........     39,041     41,068     42,988     45,971     46,968     49,051     51,214
                                                                                                                
                                       SPENDING SUBJECT TO APPROPRIATIONS                                       
                                                                                                                
Spending under current law:                                                                                     
        Budget authority \2\.......     13,905        365  .........  .........  .........  .........  .........
        Estimated outlays..........     13,893      5,830      1,571        377        101  .........  .........
Proposed changes:                                                                                               
        Estimated authorization                                                                                 
         level.....................  .........     13,703         29  .........  .........  .........  .........
        Estimated outlays..........  .........      8,040      4,253      1,266        115         58  .........
Spending under S. 1839:                                                                                         
        Estimated authorization                                                                                 
         level \2\.................     13,905     14,068         29  .........  .........  .........  .........
        Estimated outlays..........     13,893     13,870      5,824      1,643        216         58  .........
----------------------------------------------------------------------------------------------------------------
\1\ Less than $500,000.                                                                                         
\2\ The 1996 level is the amount appropriated for that year, the 1997 level includes an advance appropriation   
  for National Aeronautical Facilities.                                                                         

    The costs of this bill fall within budget functions 250, 
400, 600, and 950.
    6. Basis of estimate: Direct Spending: The provisions in S. 
1839 regarding separation incentives for NASA employees and 
civil penalties for violations of OCST regulations would affect 
direct spending in fiscal years 1997 through 2002, but CBO 
estimates that the net impact over that period would not be 
significant.
    Title III would allow NASA to offer separation incentive 
payments to employees from the date of enactment, assumed to be 
October 1, 1996, to the end of fiscal year 2000. Additional 
retirement costs would occur in the near term because some 
employees who retire under this program would receive their 
annuities earlier than they would otherwise. Expenditures for 
these annuities would constitute direct spending. This title 
also requires NASA to make additional payments to the Civil 
Service Retirement Trust Fund. Because these agency 
contributions increase offsetting receipts, the net impact on 
direct spending in fiscal year 1997 would be a reduction in 
outlays of $4 million in 1999, resulting in a net change near 
zero over the next three years. We expect insignificant savings 
in years beyond 1999.
    Based on projections from NASA, CBO estimates that about 
1,700 employees would take a separation incentive payment and 
about 1,500 of those would retire. CBO assumes that half would 
take separation payments in 1997 and half in 1998. During 
NASA's previous separation incentive programs in 1994 and 1995, 
2,647 employees took incentives. About 87 percent of employees 
taking separation payments retired and 13 percent resigned. The 
expected number of incentive payments is less than before 
because NASA has not been hiring new employees and current 
employment levels are below its employment limit. This round of 
separation incentive payments, according to NASA, would be 
targeted to specific locations and occupations.
    Based on retirement trends at NASA from 1990 to 1996, CBO 
expects that about 70 percent of the retirees taking incentives 
in 1997 and 1998 would retire anyway, without the incentive. 
This estimate assumes that the remaining 30 percent who accept 
the incentive would retire about one year earlier than they 
would have otherwise. Direct spending costs are estimated to be 
$4 million in fiscal year 1997. $8 million in 1998, and $4 
million in 1999. Beginning in 2000, insignificant savings would 
result because people who retire early accept an annuity that 
is lower than the one they would receive in the absence of an 
incentive.
    This bill also would require NASA to contribute to the 
retirement trust fund a total of 15 percent of the final salary 
of all employees receiving a separation payment. Assuming an 
average salary of about $60,000 in 1997 and $62,000 in 1998, 
the estimated mandatory offsetting receipts would be $8 million 
in fiscal year 1997 and another $8 million in 1998.
    Spending Subject to Appropriations: This estimate assumes 
that the full amounts authorized will be appropriated and that 
outlays will occur at rates consistent with recent trends for 
the agency. The bill specifies authorizations totaling $13,703 
million for NASA programs for 1997, which is about $200 million 
below the agency's appropriation for fiscal year 1996.
    Title III, which would allow NASA to provide separation 
incentive payments, would result in costs that would be funded 
by appropriations. The incentive payments made by NASA, 
estimated to be $25,000 to each employee, would total about $21 
million in each of the years 1997 and 1998. The estimated cost 
of agency payments to the retirement trust fund of 15 percent 
of final salary for all employees taking a separation incentive 
is $8 million annually in 1997 and 1998. Thus, Title III would 
increase NASA's costs by an estimated $29 million in each of 
those years. The table shows the estimated authorization of $29 
million for fiscal year 1998. For 1997, we assume that those 
costs would be paid out of the amounts specifically authorized 
in the bill for that year. The use of voluntary separation 
incentives also could result in savings by allowing NASA to 
avoid the disruptive and expensive consequences of reductions-
in-force. CBO cannot estimate these savings because the extent 
of future personnel reductions depends on funding levels over 
the next several years, which we cannot predict.
    Revenues: S. 1839 could affect revenues but CBO estimates 
that any additional receipts from penalties associated with the 
OCST licensing activities required by this bill would be 
insignificant. DOT has never collected a penalty for a 
violation of the licensing and related requirements of the 
commercial space transportation program.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. CBO estimates that enacting 
S. 1839 would affect direct spending and could affect receipts 
because of provisions regarding separation incentives for NASA 
employees and civil penalties for violations of the expanded 
OCST regulations. Therefore, pay-as-you-go procedures would 
apply to the bill, and the estimated impact is as follows:

------------------------------------------------------------------------
                                            1996       1997       1998  
------------------------------------------------------------------------
Change in outlays......................          0         -4          0
Change in receipts.....................          0          0          0
------------------------------------------------------------------------

    8. Estimated impact on State, local, and tribal 
governments: S. 1839 contains no intergovernmental mandates as 
defined in Public Law 104-4. However, the bill would indirectly 
provide financial support to State and local governments. 
Currently, about $800 million of NASA's budget goes to academic 
institutions, including public universities, for research and 
development projects. In addition, State and local governments 
are the beneficiaries of NASA's activities. For example, NASA's 
satellite images are used for land use planning and State and 
local government management. By reauthorizing NASA's programs, 
this assistance would continue.
    The bill also would broaden the scope of the DOT's 
commercial space transportation program to include in-space 
transportation and reentry activities, rather than just launch 
activities. One of the purposes of this program is to 
facilitate the participation of state governments in the 
provision of space transportation infrastructure, such as 
launch sites. The Secretary of Transportation is required make 
excess launch property available to state governments. By 
broadening the scope of the program, the bill would enable 
states to receive additional assistance if they choose to 
participate.
    9. Estimated impact on the private sector: Section 405 
would impose new private-sector mandates related to license 
requirements for reentry sites as well as reentry and in-space 
transportation activities. In addition, section 419 would 
prohibit obtrusive space advertising. CBO estimates that the 
direct costs of private-sector mandates contained in S. 1839 
would be negligible, and thus would not exceed the threshold 
cost of $100 million during any of the first five years, as 
outlined in Public Law 104-4.
    10. Previous CBO estimate: On April 30, 1996, CBO 
transmitted a cost estimate for H.R. 3322, the Omnibus Civilian 
Science Authorization Act of 1996, as ordered reported by the 
House Committee on Science on April 24, 1996. Title II of the 
House bill included an authorization of appropriations for NASA 
for fiscal year 1997 but did not include provisions related to 
incentives for NASA employees who voluntarily separate from 
Federal service. Differences between the estimate for Title II 
of that bill and the estimate for S. 1839 result from 
differences in the provisions.
    11. Estimate prepared by: Federal cost estimate: Kathleen 
Gramp--NASA programs, Wayne Boyington--employee benefits; State 
and local government impact: John Patterson; Private-sector 
impact: Amy Downs.
    12. Estimate approved by: Robert A. Sunshine, for Paul N. 
Van de Water, Assistant Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported.
  S. 1839, as reported, reauthorizes the programs and 
activities of the National Aeronautics and Space Administration 
for fiscal year 1997. The bill also contains amendments to the 
Commercial Space Launch Act, as amended, to extend the current 
licensing authority of the Office of Commercial Space 
Transportation of the Department of Transportation, which 
applies to commercial space launches and spaceports, to cover 
commercial reentry vehicles and reentry sites. It is the 
Committee's judgment that the bill will not subject any 
individuals or businesses affected by the bill to additional 
regulation, will not increase the paperwork requirement for 
such individuals or businesses, and will not have an adverse 
impact on individual privacy.

                      Section-by-Section Analysis

Section 1. Short title

  This section permits the bill to be cited as the ``National 
Aeronautics and Space Administration Act, Fiscal Year 1997''.

Section 2. Definitions

  This section defines ``Administrator'' and ``NASA'' for the 
purposes of the Act.

                Title I--Authorization of Appropriations

Section 101. Human space flight

  This section authorizes a total of $5,354,600,000 for the 
Human Space Flight account allocated as follows:
   Space Station, $1,802,000,000.
   Russian Cooperation, $138,200,000.
   Space Shuttle, $3,142,600,000.
   Payload and Utilization Operations, $271,800,000.

                             Space Station

  The bill authorizes the full requested funding level of 
$1,802,000,000 for the International Space Station program. The 
Space Station is by far NASA's most costly and complex program. 
The Space Station is aimed at constructing and operating an 
orbiting laboratory in space that will be used to conduct 
advanced materials research, study the effects of long-term 
human spaceflight, and perform other work requiring a near-zero 
gravity environment. While the U.S. has the lead role in this 
effort, major contributions are being made by the European 
Space Agency, Japan, and Canada. In addition, as part of the 
1993 redesign of the Space Station, Russia was added as a Space 
Station partner to build and supply critical Station hardware 
and to fly hardware and supplies to the Space Station. The 
bill's authorization should allow the Space Station to stay on 
schedule for the launch of its first element in 1997 and 
completion of the structure in 2002.
  The authorization of full funding for the Space Station 
reflects the Committee's recognition of the program's 
importance to the future of the Nation's human space flight 
program. It also reflects the tremendous potential of the 
program to generate breakthrough scientific and technological 
discoveries, strengthen the Nation's technology base, and 
stimulate U.S. aerospace competitiveness. The Committee 
believes that it would not be in the public interest to abandon 
the Space Station program this close to the start of the 
assembly phase after so much time and money has been invested 
in it. To date, the U.S. has spent $9 billion on the program 
and its foreign partners have contributed almost $6 billion. 
This massive investment would be wasted if the program were 
cancelled at this time.
  The Committee notes that, since the Space Station was first 
funded in 1984, the program has had a troubled history of 
chronic schedule slippages and cost overruns. Originally 
scheduled for completion in 1992 at a total cost of $8 billion, 
the current plan calls for completion ten years after that date 
at a cost of $30 billion. Through the years, the Space Station 
has undergone five redesigns, each resulting in further 
reduction of its scientific capabilities. In recent years, 
however, NASA has brought stability to the program's cost and 
structural design. The Committee expects NASA to continue to 
manage the program with tight cost controls and a firm 
commitment to its baseline plan and will be monitoring these 
matters closely as the program moves forward through its 
assembly phase.
  In its oversight hearings over the last two years, the 
Subcommittee on Science, Technology, and Space has heard 
testimony from NASA and outside witnesses regarding Russia's 
involvement in the Space Station program. Russia was brought 
into the program to broaden its international base and to take 
advantage of Russia's decades of experience in human space 
flight and operations. The inclusion of Russian hardware should 
allow the U.S. to save money relative to earlier Space Station 
designs. The U.S.-Russian cooperation in the planned series of 
Shuttle-Mir missions has already proven its worth by paving the 
way for the upcoming assembly phase of the structure. However, 
the Committee remains concerned about the program's reliance on 
Russian contributions in almost every phase of its development. 
For example, according to the last publicly released assembly 
sequence, 44 of the 73 flights needed to assemble and service 
the Space Station will involve launches of Russian rockets from 
Russia, and the core of the Space Station will be a Russian-
built navigation and propulsion system. The vulnerability of 
the Space Station program to this reliance on Russia was 
recently illustrated when the U.S. was forced to make several 
concessions to Russia's demands for reductions in its 
contributions to the program. In December 1995, the Russians 
proposed that the U.S. help extend the life of its existing 
space station (Mir) by attaching the early modules of the 
International Space Station (whose assembly begins in 1997) to 
the Mir space station. The baseline plan for the International 
Space Station assumed Mir would be shut down as the new, and 
separate, International Space Station was begun.
  The U.S. rejected this initial Russian proposal as totally 
disruptive of the baseline plan. Nevertheless, to accommodate 
the Russians, in February of this year, the U.S. negotiated a 
new agreement with the Russians under which the U.S. will add 
two additional resupply missions to Mir in 1998 (in addition to 
the seven previously scheduled through 1997) and use the 
Shuttle in 1999 to deliver to the Space Station a Russian power 
module that originally was to be launched by the Russians. The 
Russians offered nothing in exchange for these U.S. 
concessions. In the view of the Committee, this troubling 
episode raised serious concerns about (a) whether the Russians 
will make more demands for concessions in the program in the 
future and (b) whether the recent Russian demands are early 
warning signs that Russia may not have the money and launch 
capabilities to carry out its Station responsibilities. 
Although the Committee is aware that NASA has a viable 
contingency plan to permit the program to proceed in the event 
of a Russian withdrawal, there is little question that non-
performance by the Russians would cause serious cost increases 
and schedule delays.
  Finally, questions have been raised about whether the current 
Space Station design can even be executed. According to the 
Congressional Research Service, the current Space Station 
design will require 648 hours of spacewalking or extra-
vehicular activity (EVA), 214 hours more than the previous 
design. In 1993, the Vest Committee, which was appointed by the 
Vice President to oversee NASA's redesign of the Space Station, 
reported: ``EVA is an inherent risk to crew safety, and such 
heavy dependence on EVA threatens the success of station 
assembly.'' The Committee also noted that the Space Station's 
construction will require 73 launches to take place on time and 
in sequence within a 55-month period, an unprecedented demand 
on the launch resources of the U.S. and its foreign partners.
  With the start of the Space Station assembly only one year 
away and 40 percent of its development completed, the Committee 
remains optimistic about the program and therefore has fully 
funded it in the bill. However, in light of the concerns 
referenced above, the Committee will closely monitor the 
progress of the Space Station to ensure that it remains within 
budget and on schedule and that it does not jeopardize NASA's 
other missions and programs.

                          Russian Cooperation

  The bill authorizes the full $138,200,000 requested for the 
planned series of nine Shuttle missions to the Russian space 
station Mir, some of which already have been completed, to 
prepare for the assembly of the Space Station. These missions 
should increase the likelihood of Space Station's success by 
mitigating the risks in the design, assembly, and operation of 
the Space Station and paving the way for a harmonious working 
relationship with our newest Space Station partner, Russia.

                             Space Shuttle

  The Space Shuttle account is authorized at the budget request 
of $3,142,600,000. This funding level should enable NASA to 
maintain Shuttle performance without compromising safety. Over 
the next decade, America will rely on the Shuttle as never 
before as construction of the Space Station begins. Between 
1997 and the year 2002, the Shuttle is scheduled to fly 24 
missions to deliver parts and supplies to the Space Station. At 
the same time, the Shuttle program is facing intense pressure 
to cut costs. While the Committee applauds cost cutting, safety 
must always come first. As NASA reduces personnel to reduce 
costs, it must guard against taking shortcuts that would place 
our astronaut crews at risk. Accordingly, premature funding 
cuts in the Shuttle budget during this period must be avoided 
to ensure safe operations while preparing for the future 
private sector operation of the program.
  To its credit, last year, NASA conducted several studies to 
examine responsible strategies for streamlining the Shuttle 
program. First, NASA issued a report on its internal review of 
the Shuttle program (the ``Littles Report''). The Littles 
Report concluded that the Shuttle program's 35,000-person civil 
servant and contractor workforce could be reduced by 5,900 
people without safety concerns. The Littles Report was followed 
by the issuance of another report (the ``Kraft Report``) which 
published the findings of an independent blue-ribbon panel 
chaired by former Johnson Space Center director Dr. Christopher 
Kraft. The Kraft Report made a number of recommendations, 
including that: (1) Space Shuttle operations should be placed 
under the control of one prime contractor with NASA's role 
reduced to top level oversight; (2) NASA should rely on current 
Shuttle hardware and software, with minimal modifications and 
upgrades; (3) Shuttle requirements should be reviewed with the 
goal of reducing requirements based on NASA's decades of 
experience with the Shuttle; (4) payload processing and 
integration should be streamlined; (5) operational contracts 
with contractors should be restructured to provide greater 
incentives to accomplish safe and successful missions; and (6) 
NASA should consider further industry involvement and 
progression toward the privatization of the Space Shuttle. 
Equally significant was the Kraft Report's general theme that 
safety concerns not be used to avoid consideration of ways to 
downsize the standing army of NASA personnel and the massive 
infrastructure that operate and maintain the Shuttle. The Kraft 
Report noted that NASA continues to operate the decades-old 
Shuttle as an experimental vehicle, changing 150 items of 
Shuttle hardware after each flight even though an average of 
only 10 in-flight (mostly inconsequential) problems per Shuttle 
mission typically occur. In that connection, the Committee 
commends NASA on its recent request that the Aerospace Safety 
Advisory Panel undertake a focused review of the Space Shuttle 
program, concentrating on the safety of the Shuttle in light of 
recent management and operational changes, workforce 
downsizings, planned Shuttle upgrades, and the higher Shuttle 
flight rates needed to build and support the Space Station.

                   Payload and Utilization Operations

  The bill provides the requested level of $271,800,000 for the 
programs under Payload and Utilization Operations. Among the 
activities under this account is Spacelab, a laboratory 
facility that is placed in the Space Shuttle payload bay to 
permit an expansion of the number and types of experiments that 
can be performed using the Shuttle. In its pressurized module 
configuration, the Spacelab has the added advantage of enabling 
astronauts to conduct research in the payload bay in a ``shirt 
sleeves'' environment. The authorization will also fund the 
payload integration account which provides the support needed 
for payload buildup, testing, and servicing, transportation to 
the Shuttle, payload integration and installation, and related 
launch activities. Also supported is the Advanced Projects 
program which manages projects aimed at improving ground and 
flight operations through new technologies and processes. The 
Advanced Projects program includes the Orbital Debris program 
aimed at improving the safety of the Space Shuttle and the 
planned Space Station by measuring, modeling, and mitigating 
orbital debris in space. With the explosive growth of 
government and commercial satellite systems, some employing 
hundreds of satellites, the Committee believes the need to 
regulate and track orbital debris will become an increasingly 
important space policy issue. Finally, the Engineering and 
Technical Base (ETB), which supports core technical 
capabilities, is also managed within the Payload and 
Utilization operations. The Committee urges that technology 
development work within the ETB that is focused on reducing the 
cost of boosting payloads to orbit be coordinated with the RLV 
effort in the Space Access and Technology program to complement 
and strengthen that related initiative.
  

Section 102. Science, aeronautics, and technology

  This section authorizes a total of $5,760,500,000 for 
Science, Aeronautics, and Technology allocated as follows:
          Space Science, $1,797,700,000.
          Life and Microgravity Sciences and Applications, 
        $498,500,000.
          Mission to Planet Earth, $1,402,100,000.
          Aeronautical Research and Technology, $857,800,000.
          Space Access and Technology, $683,000,000.
          Mission Communications Services, $420,600,000.
          Academic Programs, $100,800,000.

                             Space Science

  A. Physics and Astronomy. The bill's authorization assumes 
full funding for all of the space science activities devoted to 
physics and astronomy, including the Hubble Space Telescope 
(HST), the Advanced X-ray Astrophysics Facility (AXAF), and the 
Global Geospace Science (GGS) spacecraft. The authorization 
also supports continuation of the operations of HST, which has 
yielded remarkable scientific results since its repair in 
December 1993. AXAF, scheduled for launch in 1998, would be the 
third in NASA's series of Great Observatories. AXAF is aimed at 
examining a broad range of the universe's electromagnetic 
spectrum. The GGS spacecraft are designed to perform 
measurements providing a better understanding of the 
interactions between the Sun and the Earth.
  The bill also assumes support for continued development work 
on the Stratospheric Observatory for Infrared Astronomy (SOFIA) 
and planning for the Space Infrared Telescope Facility (SIRTF). 
SOFIA is a cooperative project with the German Space Agency to 
develop an infrared observatory for flight in a specially 
modified Boeing 747 airplane. Intended as a replacement for the 
Kuiper Airborne Observatory, SOFIA is expected to advance our 
knowledge and understanding of star and planet formation and 
the composition of the Universe. The bill supports continued 
planning and technology development related to SIRTF. SIRTF, 
planned for launch in the year 2002, would be the last of 
NASA's Great Observatories. SIRTF will use infrared technology 
to examine deep space in connection with advanced astrophysics 
studies.
  The bill assumes no FY 1997 funding for Gravity Probe-B 
(GPB), for which $59.6 million are allocated in the President's 
budget request. Begun in the 1960s, GPB is an effort to test 
Einstein's theory of relativity by flying gyroscopes in space. 
Thus far, NASA has spent more than $240 million on GPB, without 
a single mission having ever flown, and it would require about 
$300 million more to complete the project for a scheduled 
launch in the year 2002. In recent years, some segments of the 
scientific community have questioned the scientific value and 
feasibility of the program. In fact, over the years, GPB has 
undergone at least 17 studies to answer questions about its 
merit, the most recent of which was performed by the National 
Academy of Sciences last year. The President's budget request 
for FY 1996 indicated that, if the National Academy of Sciences 
study recommended funding GPB, NASA would have to find offsets 
in the budget to fund the program. At the March 1, 1995 hearing 
of the Subcommittee on Science, Technology, and Space on the 
NASA budget, NASA Administrator Goldin was asked, ``If the 
latest National Academy of Sciences study does not find Gravity 
Probe-B to be a national priority, what do you think the 
possibilities of further funding in the program would be?'' His 
response was, ``Zero.''
  In May 1995, the Academy issued its comprehensive report on 
the GPB study. While the report recommended continuation of 
funding for GPB (on the strength of which it was funded for FY 
1996), the overall text of the report was critical of the 
program. For instance, the report indicated that the panel was 
unable to reach a consensus on the relative value of GPB, but 
noted that it would likely have less impact on the scientific 
world than the Cosmic Background Explorer (COBE) satellite. The 
report further noted that the possibility of GPB producing ``a 
great surprise'' was ``remote.'' The Committee also notes the 
skepticism expressed by some panel members that the project is 
even technically feasible. Finally, as fairly read, the report 
clearly did not view GPB as a national scientific priority. 
Since neither the Academy nor the broad scientific community it 
represents have so far given GPB their unqualified 
endorsements, the Committee believes the $59.6 million for GPB 
would be better spent on cost reductions or other space science 
research.
  B. Planetary Exploration. The bill assumes full funding for 
all of the Planetary Exploration programs in the budget 
submission, including the Cassini, Mars Surveyor, Discovery, 
and Explorer programs. The authorization will keep on schedule 
the Cassini mission to Saturn planned for launch in October 
1997. The Mars Surveyor program, an exploration effort intended 
to achieve many of the goals of the failed Mars Observer 
Mission, would launch an orbiter to Mars in 1996 and launch 
another orbiter and a lander in 1998. The Discovery program is 
aimed at flying low-cost ($150 million), focused missions 
concentrating on the inner solar system planets. Funding for 
the Discovery program will continue development of the Lunar 
Prospector and Stardust missions and support planning for 
future missions. Lunar Prospector will map the chemical 
composition of the Moon and study its magnetic and gravity 
fields. The Stardust mission, scheduled for 1999, will collect 
and return samples of interstellar dust for analysis.
  The bill also assumes support for the New Millennium 
spacecraft program, a new start in FY 1996. This program, which 
is a cooperative effort between the Space Science and Space 
Access and Technology program offices, is intended to reduce 
the size and development times of scientific spacecraft, while 
increasing their capabilities. The Committee expects the New 
Millennium program managers to work in concert with their 
counterparts in the Mission to Planet Earth program and other 
federal remote sensing activities such as Landsat so those 
programs and activities might implement any technological 
advances and breakthroughs to reduce costs and increase 
capabilities. In that connection, the Committee asks that, 
within 60 days of the enactment of the bill, NASA submit to the 
Committee a strategic plan for how New Millennium will 
coordinate with and complement the activities of Mission to 
Planet Earth and other federal remote sensing programs.

            Life and Microgravity Sciences and Applications

  The bill fully funds the Life and Microgravity Sciences and 
Applications account at $498,500,000. This authorization will 
support NASA's ongoing study of the effects of weightlessness 
on humans and animals, as well as biomedical and materials 
research. NASA's life and microgravity sciences research will 
take on increasing importance when Space Station assembly 
begins in 1997. The program also supports the joint NASA/
National Institutes of Health research in biotechnology, and 
the Committee encourages NASA to pursue similar research 
partnerships with other federal, state, academic, and private 
organizations.

                        Mission to Planet Earth

  The bill authorizes the budget request of $1,402,100,000 for 
Mission to Planet Earth, reflecting the Committee's strong 
endorsement of this activity. Mission to Planet Earth is a 
satellite program aimed at understanding and predicting global 
climate change by studying how the atmosphere, land, seas, and 
ice caps interact as a system. It is NASA's main contribution 
to the U.S. Global Climate Change Research Program and 
international climate change research programs. The bill 
assumes continued support for each of the program's components, 
including the Earth Observing System (EOS), the EOS Data and 
Information System (EOSDIS), Landsat, and Earth Probes. The 
bill's authorization assumes the allocation of $5 million for 
each of two university-led rural aerospace consortia that are 
authorized in Section 205 of the bill.
  The central activity of Mission to Planet Earth is the 
development and launch of the EOS satellites. Beginning in 
1998, NASA will launch several series of EOS satellites, each 
of which will carry multiple instruments measuring different 
aspects of climate change. The three main satellite series are: 
EOS--AM (scheduled for a 1998 launch); EOS--PM (scheduled for 
2000); and EOS--CHEM (scheduled for 2002). Each series is 
designed to include up to three spacecraft that would be 
launched at up to 6-year intervals to permit climate change 
measurements over an 18-year period. The data from EOS will be 
collected, processed, and distributed by EOSDIS through its 
nine Distributed Active Archive Centers. Full funding for 
EOSDIS is essential if the huge volumes of data expected from 
EOS are to be properly distributed for the benefit of 
researchers, educators, government agencies, and other users of 
remote sensing satellite data around the Nation and the world.
  The Landsat activity at NASA will continue support for 
development and launch in 1998 of the Landsat 7 satellite. For 
the last twenty years, the Landsat program has provided high-
resolution satellite imagery of the Earth that has been used 
for climate and environmental research, land use planning, 
mineral exploration, and government missions. That imagery is 
archived at the Department of the Interior's Earth Resources 
Observation Systems (EROS) Data Center in Sioux Falls, South 
Dakota. The Landsat program currently relies on two aging 
satellites (Landsat 4 and 5). Because a 1993 effort to deploy 
Landsat 6 failed, the successful and timely deployment of 
Landsat 7 is critical to maintaining this national asset and 
its data continuity.
  NASA's Earth Probes are smaller satellites designed to 
complement the larger EOS satellites by focusing on specific 
aspects of global change. They are also intended to take 
advantage of unique opportunities for international 
cooperation. The bill's authorization assumes funding for all 
of the Earth Probes activities in the budget request, including 
the Total Ozone Mapping Spectrometer, the Tropical Rainfall 
Measuring Mission, and Earth Systems Science Pathfinders.
  The Committee believes Mission to Planet Earth is arguably 
NASA's most important and relevant mission, and it views any 
effort to eliminate the program or undermine it through 
inappropriate budget cuts, delays in planned satellite 
procurements, or unnecessary restructurings of the data 
management system as short-sighted and not in the public 
interest. Mission to Planet Earth is one of the few NASA 
programs that will yield clear, direct benefits to American 
taxpayers, rather than the speculative spinoff benefits often 
promised by other space activities.
  In the Nation's agricultural states, many of which are 
represented on the Committee, the community's livelihood 
depends on weather and climate. Mission to Planet Earth may 
some day permit year-to-year climate prediction so farmers and 
ranchers would know in advance whether a particular year would 
bring floods, droughts, tornadoes, or other severe weather 
events. The program may also help us determine the location and 
rate of ozone depletion, which poses a particular threat to our 
agricultural community. Mission to Planet Earth may eventually 
enable farmers, sitting in front of their personal computers, 
to access the Internet to obtain soil moisture data on the 
fields they are cultivating on almost a foot-by-foot basis. For 
years, the manufacturing industry has applied new technologies 
to operate with more precision and efficiency. Mission to 
Planet Earth may eventually give the agricultural community 
that same capability.

                  Aeronautical Research and Technology

  The bill authorizes the requested level of $857,800,000 for 
Aeronautical Research and Technology to fund all of the 
activities essential to the NASA's aeronautics mission 
requirements. The authorization level assumes full funding for 
all of the main aeronautics programs, including NASA's 
subsonic, supersonic, and hypersonic research programs. NASA's 
aeronautics program has been a major factor in maintaining U.S. 
leadership and industrial competitiveness in aerospace. The 
Committee also supports the program element devoted to the High 
Performance Computing and Communications Program (HPCC), 
including its Yohkoh Public Outreach Project (YPOP), a NASA-
funded project that supports important educational and public 
outreach activities using scientific data collected under the 
Japan/U.S./United Kingdom Yohkoh solar physics mission.
  NASA's aeronautics program is focused around six strategic 
goals: (1) to develop high-payoff technologies for a new 
generation of environmentally compatible, economically superior 
U.S. subsonic aircraft and a safe, highly productive global air 
transportation system; (2) to ready the technology base for an 
economically viable and environmentally friendly high-speed 
civil transport; (3) to develop the technology options for new 
capabilities in high-performance aircraft; (4) to develop and 
demonstrate technologies for hypersonic flight; (5) to develop 
advanced concepts, physical understanding, and theoretical, 
experimental, and computational tools to enable advanced 
aerospace systems; and (6) to develop and maintain critical 
national facilities for aeronautical research and for support 
of industry, FAA, DOD, and other NASA programs. In accordance 
with these goals, the aeronautics program is intended to 
maintain laboratory strengths and staff excellence; ensure 
timely domestic technology transfer; ensure strong university 
involvement; and ensure strong cooperation among NASA Research 
Centers, industry, and academia in a manner that uses the 
strengths of each partner.
  The Committee continues to strongly support the NASA 
aeronautics research and technology program as a critical 
element of the success of the U.S. aerospace industry in the 
world market. Because of leading-edge aeronautical research 
conducted by NASA and NASA's work on emerging technologies, the 
U.S. aerospace industry is now one of the Nation's leading 
trade surplus industries. In order to maintain this positive 
balance of trade in the aerospace industries, the Committee has 
authorized the full funding for all essential NASA aeronautics 
activities.
  The Committee strongly supports the NASA Research and 
Technology Base program that helps the U.S. lead in world 
aeronautical breakthroughs and advanced aviation concepts. The 
program should develop technologies for all flight regimes from 
subsonic (including rotorcraft) through hypersonic. The 
Research and Technology Base program includes disciplines of 
aerodynamics; propulsion and power; materials and structures; 
controls, guidance and human factors; and flight systems. The 
Committee encourages cooperative agreements with industry and 
other Government institutions, but recommends that NASA ensure 
a core competency in NASA personnel at the Research Centers. 
The emphasis of the program should be on efficiency, safety, 
and new capabilities. With regard to promising new cooperative 
efforts, the Committee encourages NASA to consider the 
formation of a cooperative arrangement with the Montana Avian 
Research Group. This group consists of several ornithological 
scientists whose research concentrates on four areas: Flight 
Dynamics, Signal Processing and Communications; Energetics and 
Physiology of Light; and Songbird Monitoring. Various academic, 
government, and private sector entities could potentially 
benefit from the commercially relevant technologies that this 
research might generate. The Committee also continues to 
support strongly NASA's research in hypersonic flight, 
particularly the work on hydrodynamics technologies.

                      Space Access and Technology

  The bill authorizes $683,000,000 for the Space Access and 
Technology account to continue current programs and new 
activities. This funding level will support NASA's ongoing work 
in spacecraft and remote sensing, technology development, 
advanced space transportation, flight programs, space 
communications, and technology transfer. The bill assumes 
funding for the radar satellite activities authorized in 
Section 203 of the bill. Radar satellite technology holds the 
promise of taking conventional optical-based remote sensing 
capabilities like Landsat to the next level. Optical-based 
satellites cannot see through cloud cover so they often must 
wait for clear skies to obtain the desired imagery. Radar 
satellites do not labor under that constraint. Because radar 
satellites employ radio waves to generate their images, radar 
satellites are unhampered by cloud cover or nightfall. For 
rural states, radar satellites hold special interest since they 
can provide data about soil moisture, crop and vegetation 
classification and health, and the water content of snow. In 
addition, radar satellites can reveal elevation data, which can 
be integrated with current Landsat data to provide three-
dimensional Earth images. Equally exciting, when these 
satellites are flown as clusters, they can measure ground 
movements of as little as one centimeter, producing data of 
enormous benefit to seismologists in understanding and 
predicting earthquakes around the world. The applications of 
this technology seem truly limitless. This fact is not lost on 
Japan, Europe, and Canada, all of which operate radar 
satellites. The Committee urges NASA to make the development of 
quality civilian radar satellite capabilities an agency 
priority beginning in FY 1997 and continuing thereafter.
  The bill also assumes continued support for the Technology 
Transfer and Commercialization Center for the Rocky Mountains 
and Upper Plains States region, to which NASA committed funding 
this year. This center would be the first to serve that region. 
States in this region now have to work with a facility in 
Texas, which cannot adequately understand and meet the special 
needs of that region. The new center would focus on the unique 
interests and requirements of the region where there are often 
great distances between businesses and 98 percent of the 
companies have 50 or fewer employees. The new center would be 
located at Montana State University (MSU). The Committee is 
confident that MSU possesses the requisite experience, skills, 
resources, and outreach capabilities to serve the interests of 
the region and could draw on the existing Burns 
Telecommunications Center in Bozeman, Montana, for assistance 
in delivering programs and materials to the community.
  The bill assumes full funding for NASA's RLV initiative to 
develop and flight test technologies that might lead to a 
privately developed and operated reusable space transportation 
system to replace the Space Shuttle in the next century. The 
bill assumes full funding for each of the technology 
demonstrator vehicle activities, including: the single-stage-
to-orbit test vehicle, the X-33; a smaller launch vehicle, the 
X-34; and the ground and flight testing of the DC-XA (an 
upgrade of the DOD's successful DC-X test vehicle).
  The cost of putting useful cargo into low Earth orbit 
currently ranges from $3,000 per pound of payload to the Space 
Shuttle's $15,000 per pound cost. These high costs have kept 
this Nation from doing more in space, and, until access to 
orbit is made easier and less expensive, the U.S. will not be 
able to take full advantage of the scientific and commercial 
opportunities of space.
    The goal of the RLV program is to demonstrate cheap, 
reliable, frequent access to space through cooperative efforts 
with industry to develop experimental vehicles to test new 
approaches to spaceflight. The Committee notes this is an 
implementation of the President's August 4, 1994, National 
Space Policy (PDD/NSTC-4), which calls for a ``flight 
demonstration which would prove the concept of single-stage-to-
orbit.'' One of the strengths of experimental vehicles, like 
the X-33, X-34, and DC-XA vehicles, is their focus on the 
development and demonstration of technologies, rather than on 
the accomplishment of operational mission goals.
  The Committee commends NASA's commitment to do business in 
new ways, as exemplified by its intention to require 
significant financial participation by its RLV contractors, as 
well as its decision to allow industry to take the lead in 
designing the X-33 and X-34. However, in conducting business 
differently, some new legal issues have arisen regarding the 
third-party liability of the contractors involved with the 
development and operation of the experimental vehicles in the 
program. The aerospace industry has raised valid legal 
questions about whether, under current law, its third-party 
liability can be restricted to an acceptable level. Until these 
questions are resolved, industry might be reluctant to move to 
the flight test phase of any of the RLV planned activities. To 
address this matter, the Committee requests that, within 60 
days of the enactment of this bill, NASA submit to the 
Committee a report that identifies the major legal and policy 
issues relating to the third-party liability and 
indemnification of contractors involved in RLV work, as well as 
any other issues NASA deems relevant, and that recommends 
possible options (including schedules) for resolving these 
issues in a manner which is satisfactory to NASA and the 
contractor community, but which also promotes the public 
interest.
  The Committee stresses the ultimate goal of NASA's RLV 
program is to provide proven, demonstrated technologies 
enabling the private sector to build and fly single-stage-to-
orbit RLVs. In the case of the X-33 activity, there is the 
additional expectation of the development of an RLV capable of 
replacing the Shuttle in the next decade. In this budget 
environment, the federal government cannot afford to pay the 
more than $6 billion in estimated development costs for a 
Shuttle replacement vehicle. In its support for the RLV, the 
Committee assumes that any effort to build a Shuttle 
replacement will require industry to share approximately 10 to 
20 percent of the development costs. However, industry will not 
be disposed to share financing responsibilities if the vehicle 
concepts do not meet the commercial needs of its customers. On 
that point, the Committee is aware of concerns within the 
aerospace industry that the performance requirements for the X-
33 vehicle are too closely biased toward the goal of replacing 
the Shuttle. The Committee's approval of the proposed RLV 
program assumes that NASA will take immediate steps to resolve 
this problem so the program continues to remain focused on the 
goal of producing a vehicle that will both satisfy government 
needs and respond to commercial market requirements.
  The authorization assumes funding for the Centers for the 
Commercial Development of Space (CCDSs). The Committee is 
concerned that the funding for this activity not evolve into an 
entitlement. The CCDSs were originally established to promote 
the development of new products using the unique microgravity 
environment of space. The Centers were expected to increase 
U.S. business participation and investments in space-linked 
commercial goods and services in order to benefit the U.S. 
industries involved and the economy as a whole. The idea was 
that federal funds would be used in the early stage of a 
Center's existence as ``seed money'' until the Center could 
support itself with money from non-federal funding sources. In 
1993, NASA phased out support for 6 of the 17 Centers; however, 
the FY 1997 budget request assumes a contribution by the agency 
of approximately $18 million to the remaining 11 Centers. 
Current budget realities require NASA take aggressive steps to 
move each of the remaining Centers to self-sufficiency so its 
federal support does not evolve into an entitlement. In that 
connection, the Committee requests that NASA submit to the 
Committee by April 1, 1997, a strategic plan for ending federal 
support for each Center which includes intermediate targets and 
timetables for achieving that end. The Committee further 
requests that such plan include an assessment of the current 
economic viability of each Center. Finally, the Committee 
requests that, in all future budget submissions to Congress, 
beginning with the submission for FY 1998, the total funding 
for the CCDSs, as well as the funding for each Center, be 
clearly identified.
  The Committee urges NASA to develop policies and manage its 
programs and activities in a manner that promotes, rather than 
frustrates, the U.S. commercial space industry. In that 
connection, the Committee notes its concern about the failure 
of NASA and the U.S. Air Force to develop and implement a 
common pricing policy for launch property and launch services 
provided to the commercial space industry and state 
governments. Accordingly, the Committee requests that the two 
agencies develop and implement a common pricing policy without 
further delay and submit a report regarding that policy to the 
Committee no later than March 1, 1997. The Committee is also 
concerned about NASA's interpretation of direct costs which are 
charged to the commercial space industry and state governments. 
The House of Representatives legislative history of the 
Commercial Space Launch Amendments of 1988 indicates the intent 
that direct costs are based on additive costs, which would seem 
to preclude the government from charging for the salaries of 
existing government and contractor personnel as well as 
equipment use fees. The Committee directs NASA to correct 
immediately its interpretation of direct costs to make it 
consistent with the legislative history of the 1988 legislation 
and to submit a report to the Committee regarding its 
corrections no later than January 1, 1997.

                    Mission Communications Services

  The bill authorizes the requested level of $420.6 million for 
Mission Communications Services. Mission Communications 
Services manages the provision of telecommunications services 
needed to support NASA's exploration, science, and research and 
development programs. This authorization will enable this 
activity to continue at the level required to meet mission 
goals.

                           Academic Programs

  The bill authorizes the requested level of $100.8 million for 
NASA's Academic Programs. This activity is aimed at enhancing 
scientific and technological competence through a broad range 
of educational outreach activities addressed to both pre-
college and higher education. Of the authorized amount, $2 
million is allocated for NASA's continued assistance to the 
Upper Plains States regional science education and outreach 
center project and assumes continued support for the 
establishment of a new Rural Teacher Resource Center to serve 
that underserved region.
  The funding for the science education and outreach center 
would support the Science Discovery Center project presently 
under development in Sioux Falls, South Dakota. Currently, the 
Sioux Falls community is working diligently to convert an 
unused high-school facility into a high-tech center that would 
be used to enhance and expand the educational experiences at 
the K-12 level and to increase the knowledge and understanding 
of the entire community and region of science and technology. 
Once completed, the Center would be the only facility of its 
kind in the region. The Center has broad support in the local 
community, which is currently financing the ongoing development 
work on the project.
  This year, NASA is expected to begin work on a new Rural 
Teacher Resource Center, which would be the tenth NASA Teacher 
Resource Center (TRC). The TRCs maintain a collection of NASA-
related materials and make them available to the communities 
they serve. Each of the current TRCs is located at a NASA field 
center. While the prior policy of co-locating the TRCs at NASA 
facilities is understandable, it has meant that those in the 
Plains States region have not been served by the TRCs. The 
establishment of an additional Rural TRC should rectify this 
problem. The new Rural TRC will be located at Montana State 
University, whose location, knowledge of the area, and outreach 
capabilities uniquely qualify it to manage the TRC in a way 
that will serve the special needs of the entire region.
  In order to increase the effectiveness of NASA's academic 
programs, the Committee encourages NASA to work with non-profit 
organizations to enhance the development of aerospace education 
programs through state-based teacher outreach. The goals of 
such partnerships should include streamlining the 
administration of NASA's education programs, stimulating state 
participation in the civilian space program, evolving the role 
of aerospace science in the classroom, and supporting teacher 
training in aerospace science. The Committee believes space 
education is important to the Nation and encourages efforts 
like those of the Spaceweek International Association, which 
holds an annual event involving government, industry, and 
education organizations across the United States to educate the 
public about space. The Committee supports these kinds of 
initiatives and recommends scheduling them during the school 
year to maximize student participation and stimulate student 
interest in mathematics and science.

Section 103. Mission support

  This section authorizes a total of $2,570,500,000 for Mission 
Support allocated as follows:
          Safety, Reliability, and Quality Assurance, 
        $36,700,000.
          Space Communications Services, $291,400,000.
          Research and Program Management, $2,078,800,000.
          Construction of Facilities, $163,600,000.

               Safety, Reliability, and Quality Assurance

  The bill authorizes the requested level of $36,700,000 for 
NASA's safety, reliability, and quality assurance programs. 
This activity funds NASA's safety oversight of all of its 
missions and programs. The funding reflects the importance the 
Committee places on NASA's safety-related functions.

                     Space Communications Services

  The bill authorizes $291,400,000 for Space Communications 
Services (the President's budget request). This account funds 
the tracking, telemetry, data acquisition, and data processing 
activities for all NASA spacecraft. Included among these 
activities is NASA's Tracking and Data Relay Satellite (TDRS) 
system of geosynchronous satellites and its associated ground 
stations. Some Members of the Committee have urged NASA, to the 
extent practicable and consistent with its mission, to continue 
to work with educational programming providers to explore ways 
that they might use available unused C-band transponder space 
on the TDRS satellites. At an April 24th hearing before the 
Subcommittee on Science, Technology, and Space on distance 
learning, witnesses testified about the prohibitive cost and 
scarcity of the transponder space commercially available to the 
educational community. The Committee supports appropriate and 
cost-effective efforts by NASA to help that community address 
these obstacles to the satellite-based delivery of educational 
programming in order to enhance and strengthen our Nation's 
mathematics and science educational activities at all levels.

                    Research and Program Management

  The bill authorizes the full requested level of 
$2,078,800,000 for Research and Program Management, the account 
which funds the salaries, travel expenses, and other 
administrative expenses at NASA. The Committee believes this 
funding level will be sufficient to fund the implementation 
costs of the buyout provisions contained in Title III of the 
bill to encourage voluntary separations in order to reduce the 
agency's workforce.

                       Construction of Facilities

  The bill authorizes the requested level of $163,600,000 for 
Construction of Facilities. This account funds the various 
projects requested by NASA involving the repair and renovation 
of existing facilities and the design and construction of new 
facilities.

Section 104. Inspector General

  This section authorizes the requested $17,000,000 for NASA's 
Office of Inspector General (OIG). The OIG conducts audits, 
inspections, and investigations to assist NASA to achieve 
efficiency and effectiveness in the administration of its 
programs and to prevent and detect fraud, waste, and abuse. The 
OIG's role is particularly critical in the area of procurement 
since about 90 percent of the agency's total obligations are 
for procurement. In recent years, the OIG has been criticized 
for failing to maintain the level of independence from the 
agency management that was contemplated under the Inspector 
General Act. In certain cases, that failure may well have 
compromised the effectiveness and integrity of the OIG's 
investigations and undermined staff investigators. In a 
February 1994 report, the GAO released the results of its 
investigation into allegations of misconduct by the individual 
serving as Inspector General at that time. The GAO reviewed 
allegations in three areas: (1) prenotification of senior NASA 
employees who were targets of impending OIG investigations; (2) 
unauthorized disclosure of grand jury-related information; and 
(3) premature closing of selected audits and investigations. 
The GAO found no support for allegations in the last two 
categories; however, with regard to the ``prenotification'' 
charge, the GAO found the then-Inspector General's practice 
appeared to constitute ``a failure to exercise due professional 
care and could be viewed as an impairment of his office's 
execution of investigations.'' The Committee expects the OIG to 
adopt appropriate policies and guidelines to ensure against a 
repeat of this practice.

              Title II--Limitations and General Provisions

Section 201. Space Station limitation

  This section limits the total authorization for Space Station 
and related activities in fiscal year 1997 to $2,100,000,000. 
However, in order not to disrupt the planned Space Station 
effort, the Committee expects to work with the Administration 
prior to floor consideration of the bill to ensure an 
authorized level of $2,148,600,000 for Station-related 
activities is available to NASA for FY 1997. At the inception 
of the Space Station Alpha concept, NASA and the Administration 
made a firm commitment to the total development cost of $17.4 
billion for the assembly phase beginning in 1997 and ending in 
2002, based on the assumption of stable funding throughout that 
period. In FY 1997, a peak year of productivity in the program, 
$2.148 billion is required to meet that commitment for FY 1997. 
The Committee accepts this and will work to make an appropriate 
adjustment to the Space Station authorization when the Senate 
considers the bill.

Section 202. Experimental program to stimulate competitive research

  This section authorizes $10,000,000 within NASA's Academic 
Programs account to the existing EPSCoR program which funds 
space research in rural states. The Committee commends NASA's 
EPSCoR on its vital funding support for quality space science 
research at rural academic institutions and encourages the 
agency to form cooperative relationships between EPSCoR and 
NASA's space science programs to further enhance the 
competitiveness of those institutions.

Section 203. Radar remote sensing satellites

  This section authorizes $35,000,000 for Phase A and B studies 
for a radar satellite program and any subsequent development 
and operational activities. Earlier this year, at the urging of 
the Committee and pursuant to the FY 1996 appropriations 
legislation for NASA, the agency announced its commitment to 
conducting Phase A studies for this initiative. This section 
authorizes that work, as well as any follow-on activities 
relating to a new civilian radar satellite initiative. This 
section requires NASA to submit to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Science of the House of Representatives an implementation plan 
within 90 days of the enactment of the bill. At a time when 
three other nations operate radar satellite systems, the 
Committee believes it is in the national interest for NASA to 
develop an operational radar satellite system for the U.S. The 
radar satellite program would complement and strengthen the 
capabilities of our current remote sensing assets and generate 
benefits for industry, academia, and the government. The 
Committee requests this new radar satellite be coordinated with 
Mission to Planet Earth, any reflights of the Shuttle Imaging 
Radar-C or similar follow-on spacecraft, and other civilian 
remote sensing activities at NASA or other government agencies.

Section 204. Restructuring of the Earth Observing System Data and 
        Information System

  This section prohibits NASA from restructuring the data 
management portion of the Mission to Planet Earth program 
unless the Senate Committee on Commerce, Science, and 
Transportation and the Committee on Science of the House of 
Representatives are given 60 days notice of the proposed 
action, so that those oversight Committees are informed of the 
nature, cost, and program impact of any such proposed action. 
The Committee supports the baseline plan for Mission to Planet 
Earth, particularly its data management component, the Earth 
Observing System Data and Information System (EOSDIS). Through 
its network of regional Distributed Active Archive Centers 
(DAACs), EOSDIS will collect and process an unprecedented 
volume of satellite data and distribute that data to over 
100,000 users in business, education, agriculture, and the 
general public.
  Section 204 is intended to address the Committee's serious 
concerns about possible attempts to restructure EOSDIS to the 
detriment of the system. The Committee notes that, in its 
oversight hearings this year, both on the FY 1997 NASA budget 
and on Mission to Planet Earth in particular, some members of 
the Committee expressed reservations about the serious adverse 
effects that any EOSDIS restructuring could have on the success 
of the Earth Observing System satellite program as it nears the 
launch of its first spacecraft (AM-1) in 1998 and the precursor 
SeaStar mission in 1997. While the Committee respects the 
recommendations of last fall's National Research Council report 
on Mission to Planet Earth, it does not agree with its specific 
recommendation to proceed immediately to a ``federated 
management'' approach of EOSDIS. It believes such a concept is 
ill-advised at this time and could lead, however 
unintentionally, to a kind of management by committee, with 
negative schedule, budgetary, and technical consequences as a 
result. To the extent any such concept is implemented, it could 
be limited to a narrowly focused pilot program so that the core 
data activities of EOSDIS managed by the DAACs are not placed 
at risk.

Section 205. Rural aerospace consortia to develop applications for 
        Mission to Planet Earth data

  This section authorizes $5,000,000 for a university-led 
consortium to conduct hydrology research focused on the Upper 
Missouri River Basin region, and another $5,000,000 for the 
efforts of the Upper Midwest Aerospace Consortium to make 
Mission to Planet Earth data more accessible by the general 
public. The hydrology studies project will conduct research on 
the hydrology of the flood-plagued Upper Missouri River Basin. 
The project will use the enormous volumes of data from Mission 
to Planet Earth for research to inform public policy decisions 
relating to the Upper Missouri River Basin. The research will 
focus on a broad range of subjects, including: the development 
of better management and investigation of floods and natural 
disasters; the impact of natural events and water management on 
the food-producing capabilities of the region; and the 
development of models for hydrology research and water 
management policy which can be transferred to other large river 
basins around the world. The project would be managed by a 
broad consortium of regional academic, government, and private 
sector institutions led by the South Dakota School of Mines and 
Technology, which has a distinguished track record in the area 
of hydrology research and development. The Upper Midwest 
Aerospace Consortium will concentrate on converting the data 
from Mission to Planet Earth into useful information that is 
understandable and accessible by individuals and institutions 
in the region. To further broaden the utility of Mission to 
Planet Earth data, the Committee encourages NASA to consider 
entering into cooperative research arrangements with entities 
like the Flathead Lake Biological Station. Flathead Lake is the 
largest natural, fresh-water lake west of the Mississippi 
River. Participation by NASA in the research being conducted by 
this facility would greatly enhance its ongoing hydrological 
and biological studies of the lake and the surrounding region.

Section 206. Acquisition of Earth remote sensing data

  This section authorizes NASA, to the extent feasible and 
cost-effective, to acquire Earth remote sensing data and 
services from the private sector when these data are found to 
fulfill the science requirements of Mission to Planet Earth and 
authorizes $50,000,000 within the Mission to Planet Earth 
account for such purchases.

Section 207. Shuttle privatization

  This section directs NASA to conduct a study of the 
feasibility of Shuttle privatization and to report to the 
Senate Committee on Commerce, Science, and Transportation and 
the Committee on Science of the House of Representatives on the 
findings of that study within 60 days of the enactment of the 
legislation. This section directs NASA to conduct a feasibility 
study of the major recommendation of its own independent review 
team (the Kraft commission) that the Space Shuttle program be 
privatized. The study would look at all the main policy and 
legal issues that must be resolved before NASA could 
responsibly proceed toward privatization. Within 60 days of the 
enactment of the bill, NASA is required to complete the study 
and submit a report thereon to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Science of the House of Representatives. Allowing a private 
company to manage and operate the Shuttle on a commercial basis 
would save the taxpayer much of the $3 billion per year the 
program now costs. The Committee commends NASA on its placement 
of the program under one prime contractor as a transitional 
step toward the ultimate goal of full privatization.

Section 208. Use of existing facilities

  This section directs NASA to consider, prior to committing to 
the purchase, lease, or expansion of a facility to meet agency 
requirements, the use of military facilities that have been 
closed or are being closed, as well as underutilized military 
or other Federal agency facilities, for such requirements to 
the extent feasible, cost-effective, and not inconsistent with 
the Defense Base Closure and Realignment Act of 1990. The end 
of the Cold War and the drawdown of our military infrastructure 
has left the Nation with many facilities and property that are 
unused or woefully underutilized. In many of the states 
represented on the Committee, there are easily identifiable 
military and other federal government facilities that might be 
put to some cost-effective use in our U.S. space program. 
Ellsworth Air Force Base in South Dakota and Malmstrom Air 
Force Base in Montana are just two examples of military 
installations that the space program might put to good use. 
Section 208 is intended to encourage NASA to start taking a 
serious look at using some of these valuable assets and 
properties that have served as the backbone of our national 
defense and federal government before making huge financial 
commitments to new leases or purchases of facilities.

Section 209. Use of funds for construction

  This section authorizes NASA to use funds appropriated for 
purposes other than Construction of Facilities, Research and 
Program Management (excluding research operations support), and 
the Office of Inspector General for the construction of new 
facilities and modifications to existing facilities, provided, 
however, that no funds used under this section may be spent for 
a project whose estimated cost exceeds $750,000 until 30 days 
have passed after notice has been given to the Senate Committee 
on Commerce, Science, and Transportation and the Committee on 
Science of the House of Representatives of the nature, 
location, and estimated cost of the project.

Section 210. Construction of facilities

  This section authorizes the reprogramming of funds 
appropriated for construction of facilities for the 
construction, expansion, or modification of facilities at any 
location if NASA determines the reprogramming was dictated by 
new developments in aeronautics and space activities, and 
deferral of such action until the next authorization Act would 
be inconsistent with the national interest in aeronautics and 
space activities, provided that 30 days' notice has been given 
to the Senate Committee on Commerce, Science, and 
Transportation and the Committee on Science of the House of 
Representatives.

Section 211. Availability of appropriated amounts

  This section provides that, to the extent provided in 
appropriations Acts, appropriations authorized under the bill 
may remain available without fiscal year limitation.

Section 212. Consideration by Committees

  This section provides that no appropriated funds may be used 
for any program deleted by the Congress from requests 
originally made to the Senate Committee on Commerce, Science, 
and Transportation and the Committee on Science of the House of 
Representatives, and no funds may be used for any program in 
excess of the amount actually authorized for that particular 
program (exclusive of construction of facility projects) unless 
30 days have passed after proper notification to those 
Committees.

Section 213. Use of funds for scientific consultations or extraordinary 
        expenses

  This section authorizes the use of funds not to exceed 
$35,000 for official reception and representation expenses.

Section 214. Reporting requirements

  This section eliminates the requirement of an annual 
President's report on aeronautics and space which is deemed 
unnecessary and too costly, and permits NASA to delay for up to 
five years the disclosure of commercially valuable information 
generated in programs funded in whole or in part by NASA. It 
also requires NASA to publish biannually a list of all 
competitively sensitive technology areas important to 
aeronautical and space leadership or competitiveness.

Section 215. Independent research and development

  This section indicates that Congress finds that contractors 
should be allowed to recover as independent research and 
development costs the costs they contribute in cooperative 
agreements with NASA.

Section 216. Reduction or suspension of contract payments based on 
        substantial evidence of fraud

  This section gives NASA the same authority possessed by DOD 
and other civilian agencies to withhold contract payments based 
on substantial evidence of fraud.

Section 217. Educational activities

  This section requires NASA to develop, no later than July 31, 
1997, a strategic plan for those educational activities based 
on the human exploration of space and specifically the 
International Space Station program.

               Title III--Employment Reduction Assistance

Sections 301-310

  This title, developed in consultation with NASA, provides the 
agency with up to $25,000 per employee in buyout authority to 
provide separation incentives for its personnel to assist the 
agency's efforts to downsize its workforce with minimal use of 
reductions in force. The Committee understands and recognizes 
the need for NASA to reduce its 25,000-person workforce to 
approximately 17,000 workers by the year 2000. Nevertheless, it 
believes such personnel reductions need to be implemented in a 
gradual and thoughtful manner, with proper consideration for 
the personnel affected. It is with that in mind that the 
Committee has provided this authority through fiscal year 2000 
to encourage voluntary separations in support of NASA's 
downsizing effort.

            Title IV--Commercial Space Launch Act Amendments

Sections 401-419

  This title amends the Commercial Space Launch Act, as 
amended, to extend the current licensing authority of the DOT 
Office of Commercial Space Transportation (OCST) to cover re-
entry space vehicles, reentry sites, and in-space 
transportation and directs OCST to issue regulations to 
implement those amendments. Under current law, OCST is only 
authorized to license U.S. commercial launches and launch 
facilities. Commercial reentry vehicles and sites and in-space 
transportation activities were not contemplated when the 
current regulatory regime was established. This expansion of 
licensing authority is critical to ensure that these new 
emerging commercial space activities are safe and are covered 
by the risk allocation regime established under the current law 
to limit third party liability associated with commercial 
launches. This title also establishes a requirement for DOT to 
provide an annual report to Congress on the activities of OCST. 
It also prohibits OCST from issuing or transferring licenses 
for the launch of payloads to be used for obtrusive space 
advertising, and asks the President to negotiate with other 
foreign space launching nations to reach an agreement that 
would prohibit the use of outer space as a medium for obtrusive 
advertising purposes. However, this provision is not intended 
to prohibit on-vehicle advertising such as that found on racing 
cars.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                         TITLE 10--ARMED FORCES

                    Subtitle A--General Military Law

               Part IV--Service, Supply, and Procurement

                   CHAPTER 137--PROCUREMENT GENERALLY

Sec. 2307. Contract financing

  (a) Payment Authority.--The head of any agency may--
          (1) make advance, partial, progress, or other 
        payments under contracts for property or services made 
        by the agency; and
          (2) insert in solicitations for procurement of 
        property or services a provision limiting to small 
        business concerns advance or progress payments.
  (b) Performance-based Payments.--Whenever practicable, 
payments under subsection (a) shall be made on any of the 
following bases:
          (1) Performance measured by objective, quantifiable 
        methods such as delivery of acceptable items, work 
        measurement, or statistical process controls.
          (2) Accomplishment of events defined in the program 
        management plan.
          (3) Other quantifiable measures of results.
  (c) Payment Amount.--Payments made under subsection (a) may 
not exceed the unpaid contract price.
  (d) Security for Advance Payments.--Advance payments made 
under subsection (a) may be made only if the contractor gives 
adequate security and after a determination by the head of the 
agency that to do so would be in the public interest. Such 
security may be in the form of a lien in favor of the United 
States on the property contracted for, on the balance in an 
account in which such payments are deposited, and on such of 
the property acquired for performance of the contract as the 
parties may agree. This lien is paramount to any other liens 
and is effective immediately upon the first advancement of 
funds without filing, notice, or any other action by the United 
States.
  (e) Conditions for Progress Payments.--
          (1) The Secretary of Defense shall ensure that any 
        payment for work in progress (including materials, 
        labor, and other items) under a defense contract that 
        provides for such payments is commensurate with the 
        work accomplished that meets standards established 
        under the contract. The contractor shall provide such 
        information and evidence as the Secretary of Defense 
        determines necessary to permit the Secretary to carry 
        out the preceding sentence.
          (2) The Secretary shall ensure that progress payments 
        referred to in paragraph (1) are not made for more than 
        80 percent of the work accomplished under a defense 
        contract so long as the Secretary has not made the 
        contractual terms, specifications, and price definite.
          (3) This subsection applies to any contract in an 
        amount greater than $ 25,000.
  (f) Conditions for Payments for Commercial Items.--
          (1) Payments under subsection (a) for commercial 
        items may be made under such terms and conditions as 
        the head of the agency determines are appropriate or 
        customary in the commercial marketplace and are in the 
        best interests of the United States. The head of the 
        agency shall obtain adequate security for such 
        payments. If the security is in the form of a lien in 
        favor of the United States, such lien is paramount to 
        all other liens and is effective immediately upon the 
        first payment, without filing, notice, or other action 
        by the United States.
          (2) Advance payments made under subsection (a) for 
        commercial items may include payments, in a total 
        amount of not more than 15 percent of the contract 
        price, in advance of any performance of work under the 
        contract.
          (3) The conditions of subsections (d) and (e) need 
        not be applied if they would be inconsistent, as 
        determined by the head of the agency, with commercial 
        terms and conditions pursuant to paragraphs (1) and 
        (2).
  (g) Certain Navy Contracts.--
          (1) The Secretary of the Navy shall provide that the 
        rate for progress payments on any contract awarded by 
        the Secretary for repair, maintenance, or overhaul of a 
        naval vessel shall be not less than--
                  (A) 95 percent, in the case of a firm 
                considered to be a small business; and
                  (B) 90 percent, in the case of any other 
                firm.
          (2) The Secretary of the Navy may advance to private 
        salvage companies such funds as the Secretary considers 
        necessary to provide for the immediate financing of 
        salvage operations. Advances under this paragraph shall 
        be made on terms that the Secretary considers adequate 
        for the protection of the United States.
          (3) The Secretary of the Navy shall provide, in each 
        contract for construction or conversion of a naval 
        vessel, that, when partial, progress, or other payments 
        are made under such contract, the United States is 
        secured by a lien upon work in progress and on property 
        acquired for performance of the contract on account of 
        all payments so made. The lien is paramount to all 
        other liens.
  (h) Action in Case of Fraud.--
          (1) In any case in which the remedy coordination 
        official of an agency finds that there is substantial 
        evidence that the request of a contractor for advance, 
        partial, or progress payment under a contract awarded 
        by that agency is based on fraud, the remedy 
        coordination official shall recommend that the head of 
        the agency reduce or suspend further payments to such 
        contractor.
          (2) The head of an agency receiving a recommendation 
        under paragraph (1) in the case of a contractor's 
        request for payment under a contract shall determine 
        whether there is substantial evidence that the request 
        is based on fraud. Upon making such a determination, 
        the agency head may reduce or suspend further payments 
        to the contractor under such contract.
          (3) The extent of any reduction or suspension of 
        payments by the head of an agency under paragraph (2) 
        on the basis of fraud shall be reasonably commensurate 
        with the anticipated loss to the United States 
        resulting from the fraud.
          (4) A written justification for each decision of the 
        head of an agency whether to reduce or suspend payments 
        under paragraph (2) and for each recommendation 
        received by such agency head in connection with such 
        decision shall be prepared and be retained in the files 
        of such agency.
          (5) The head of an agency shall prescribe procedures 
        to ensure that, before such agency head decides to 
        reduce or suspend payments in the case of a contractor 
        under paragraph (2), the contractor is afforded notice 
        of the proposed reduction or suspension and an 
        opportunity to submit matters to the head of the agency 
        in response to such proposed reduction or suspension.
          (6) Not later than 180 days after the date on which 
        the head of an agency reduces or suspends payments to a 
        contractor under paragraph (2), the remedy coordination 
        official of such agency shall--
                  (A) review the determination of fraud on 
                which the reduction or suspension is based; and
                  (B) transmit a recommendation to the head of 
                such agency whether the suspension or reduction 
                should continue.
          (7) The head of an agency shall prepare for each year 
        a report containing the recommendations made by the 
        remedy coordination official of that agency to reduce 
        or suspend payments under paragraph (2), the actions 
        taken on the recommendations and the reasons for such 
        actions, and an assessment of the effects of such 
        actions on the Federal Government. The Secretary of 
        each military department shall transmit the annual 
        report of such department to the Secretary of Defense. 
        Each such report shall be available to any member of 
        Congress upon request.
          (8) This subsection applies to the agencies named in 
        paragraphs (1), (2), (3), [and (4)] 4, and 6 of section 
        2303(a) of this title.
          (9) The head of an agency may not delegate 
        responsibilities under this subsection to any person in 
        a position below level IV of the Executive Schedule.
          (10) In this subsection, the term ``remedy 
        coordination official'', with respect to an agency, 
        means the person or entity in that agency who 
        coordinates within that agency the administration of 
        criminal, civil, administrative, and contractual 
        remedies resulting from investigations of fraud or 
        corruption related to procurement activities.

                TITLE 42--THE PUBLIC HEALTH AND WELFARE

                   CHAPTER 26--NATIONAL SPACE PROGRAM

                           GENERAL PROVISIONS

Sec. 2454. Access to information

  (a) Information obtained or developed by the Administrator in 
the performance of his functions under this Act shall be made 
available for public inspection, except (A) information 
authorized or required by Federal statute to be withheld, (B) 
information classified to protect the national security, and 
(C) information described in subsection (b): Provided, That 
nothing in this Act shall authorize the withholding of 
information by the Administrator from the duly authorized 
committees of the Congress.
  (b) The Administrator, for a period of up to 5 years after 
the development of information that results from activities 
conducted under an agreement entered into under section 203(c) 
(5) and (6) of this Act [42 U.S.C. 2473(c) (5), (6)], and that 
would be a trade secret or commercial or financial information 
that is privileged or confidential under the meaning of section 
552(b)(4) of title 5, United States Code, if the information 
had been obtained from a non-Federal party participating in 
such an agreement, may provide appropriate protections against 
the dissemination of such information, including exemption from 
subchapter II of chapter 5 of title 5, United States Code [5 
U.S.C. 551 et seq.].
  (c)(1) The Administrator may delay, for a period not to 
exceed 5 years, the unrestricted public disclosure of technical 
data, related to a competitively sensitive technology, in the 
possession of, or under the control of, the Administration that 
has been generated in the performance of experimental, 
developmental, or research activities or programs conducted by, 
or funded in whole or in part by, the Administration, if the 
technical data has significant value in maintaining leadership 
or competitiveness, in civil and governmental aeronautical and 
space activities by the United States industrial base.
  (2) The Administrator shall publish biannually in the Federal 
Register a list of all competitively sensitive technology areas 
which it believes have a significant value in maintaining the 
United States leadership or competitiveness in civil and 
governmental aeronautical and space activities. The list shall 
be generated after consultation with appropriate Government 
agencies and a diverse cross section of companies--
          (A) that conduct a significant level of research, 
        development, engineering, and manufacturing in the 
        United States; and
          (B) the majority ownership or control of which is 
        held by United States citizens.
  (3) The Administrator shall provide an opportunity for 
written objections to the list within a 60-day period after it 
is published. After the expiration of that 60-day period, and 
after consideration of all written objections received by the 
Administrator during that period, NASA shall issue a final list 
of competitively sensitive technology areas.
  (4) For purposes of this subsection, the term ``technical 
data'' means any recorded information, including computer 
software, that is or may be directly applicable to the design, 
engineering, development, production, manufacture, or operation 
of products or processes that may have significant value in 
maintaining leadership or competitiveness in civil and 
governmental aeronautical and space activities by the United 
States industrial base.
          * * * * * * *

[Sec. 2476. Reports to the Congress

  [(a) Presidential Report; Transmittal.--The President shall 
transmit to the Congress in January of each year a report, 
which shall include (1) a comprehensive description of the 
programed activities and the accomplishments of all agencies of 
the United States in the field of aeronautics and space 
activities during the preceding calendar year, and (2) an 
evaluation of such activities and accomplishments in terms of 
the attainment of, or the failure to attain, the objectives 
described in section 102(c) of this Act [42 U.S.C. 2451(c)].
  [(b) Recommendations for Additional Legislation.--Any report 
made under this section shall contain such recommendations for 
additional legislation as the Administrator or the President 
may consider necessary or desirable for the attainment of the 
objectives described in section 102(c) of this Act [42 U.S.C. 
2451(c)].
  [(c) Classified Information.--No information which has been 
classified for reasons of national security shall be included 
in any report made under this section, unless such information 
has been declassified by, or pursuant to authorization given 
by, the President.]

            CHAPTER 701--COMMERCIAL SPACE LAUNCH ACTIVITIES

Sec. 70101. Findings and purposes

  (a) Findings.--Congress finds that--
          (1) the peaceful uses of outer space continue to be 
        of great value and to offer benefits to all mankind;
          (2) private applications of space technology have 
        achieved a significant level of commercial and economic 
        activity and offer the potential for growth in the 
        future, particularly in the United States;
          (3) new and innovative equipment and services are 
        being sought, produced, and offered by entrepreneurs in 
        telecommunications, information services, microgravity 
        research, and remote sensing technologies;
          (4) the private sector in the United States has the 
        capability of developing and providing commercial space 
        transportation services, including in-space 
        transportation activities and private satellite 
        launching and associated services that would complement 
        the launching and associated services now available 
        from the United States Government;
          (5) the development of [commercial launch vehicles] 
        commercial space transportation including commercial 
        launch vehicles, in-space transportation activities, 
        reentry vehicles, and associated services would enable 
        the United States to retain its competitive position 
        internationally, contributing to the national interest 
        and economic well-being of the United States;
          (6) providing [launch] launch, in-space 
        transportation, and reentry services by the private 
        sector is consistent with the national security and 
        foreign policy interests of the United States and would 
        be facilitated by stable, minimal, and appropriate 
        regulatory guidelines that are fairly and expeditiously 
        applied;
          (7) the United States should encourage private sector 
        [launches] launches, in-space transportation 
        activities, reentries and associated services and, only 
        to the extent necessary, regulate those [launches] 
        launches, in-space transportation activities, reentries 
        and services to ensure compliance with international 
        obligations of the United States and to protect the 
        public health and safety, safety of property, and 
        national security and foreign policy interests of the 
        United States;
          (8) space transportation, including the establishment 
        and operation of launch [sites and complementary 
        facilities, the providing of launch] sites, in-space 
        transportation control sites, reentry sites, and 
        complementary facilities, the providing of launch, in-
        space transportation, and reentry services, the 
        establishment of support facilities, and the providing 
        of support services, is an important element of the 
        transportation system of the United States, and in 
        connection with the commerce of the United States there 
        is a need to develop a strong space transportation 
        infrastructure with significant private sector 
        involvement; and
          (9) the participation of State governments in 
        encouraging and facilitating private sector involvement 
        in space-related activity, particularly through the 
        establishment of a space transportation-related 
        infrastructure, including launch sites, in-space 
        transportation control sites, reentry sites, 
        complementary facilities, and launch site support 
        facilities, is in the national interest and is of 
        significant public benefit.
  (b) Purposes.--The purposes of this chapter are--
          (1) to promote economic growth and entrepreneurial 
        activity through use of the space environment for 
        peaceful purposes;
          (2) to encourage the United States private sector to 
        provide [launch vehicles] commercial space 
        transportation services, including launch vehicles, in-
        space transportation activities, reentry vehicles, and 
        associated services by--
                  (A) simplifying and expediting the issuance 
                and transfer of commercial launch licenses; and
                  (B) facilitating and encouraging the use of 
                Government-developed space technology;
          (3) to provide that the Secretary of Transportation 
        is to oversee and coordinate the conduct of commercial 
        [launch] launch, in-space transportation vehicle, and 
        reentry operations, issue and transfer [commercial 
        launch] licenses authorizing those operations, and 
        protect the public health and safety, safety of 
        property, and national security and foreign policy 
        interests of the United States; and
          (4) to facilitate the strengthening and expansion of 
        the United States space transportation infrastructure, 
        including the enhancement of United States launch sites 
        and launch-site support facilities, in-space 
        transportation vehicle control facilities, and 
        development of reentry sites with Government, State, 
        and private sector involvement, to support the full 
        range of United States space-related activities.

Sec. 70102. Definitions

  In this chapter--
          (1) ``citizen of the United States'' means--
                  (A) an individual who is a citizen of the 
                United States;
                  (B) an entity organized or existing under the 
                laws of the United States or a State; or
                  (C) an entity organized or existing under the 
                laws of a foreign country if the controlling 
                interest (as defined by the Secretary of 
                Transportation) is held by an individual or 
                entity described in subclause (A) or (B) of 
                this clause.
          (2) ``executive agency'' has the same meaning given 
        that term in section 105 of title 5.
          (3) ``launch'' means to place or try to place a 
        launch vehicle and any payload from Earth, including a 
        reentry vehicle and its payload, if any--
                  (A) in a suborbital trajectory;
                  (B) in Earth orbit in outer space; or
                  (C) otherwise in outer space.
          (4) ``launch property'' means an item built for, or 
        used in, the launch preparation or launch of a launch 
        vehicle.
          (5) ``launch services'' means--
                  (A) activities involved in the preparation of 
                a launch vehicle and payload for launch; and
                  (B) the conduct of a launch.
          (6) ``launch site'' means the location on Earth from 
        which a launch takes place (as defined in a license the 
        Secretary issues or transfers under this chapter) and 
        necessary facilities.
          (7) ``launch vehicle'' means--
                  (A) a vehicle built to operate in, or place a 
                payload in, outer space; and
                  (B) a suborbital rocket.
          (8) ``payload'' means an [object] object, including a 
        reentry vehicle and its payload, if any, that a person 
        undertakes to place in outer space by means of a launch 
        vehicle, including components of the vehicle 
        specifically designed or adapted for that object.
          (9) ``in-space transportation vehicle'' means any 
        vehicle designed to operate in space and designed to 
        transport any payload or object substantially intact 
        from one orbit to another orbit.
          (10) ``in-space transportation services'' means--
                  (A) those activities involved in the direct 
                transportation or attempted transportation of a 
                payload or object from one orbit to another;
                  (B) the procedures, actions, and activities 
                necessary for conduct of those transportation 
                services; and
                  (C) the conduct of transportation services.
          (11) ``in-space transportation control site'' means a 
        location from which an in-space transportation vehicle 
        is controlled or operated (as such terms may be defined 
        in any license the Secretary issues or transfers under 
        this chapter).
          (12) ``obtrusive space advertising'' means 
        advertising in outer space that is capable of being 
        recognized by a human being on the surface of the Earth 
        without the aid of a telescope or other technological 
        device.
          (13) ``reenter'' and ``reentry'' mean to return 
        purposefully, or attempt to return, a reentry vehicle 
        and payload, if any, from Earth orbit or outer space to 
        Earth.
          (14) ``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.
          (15) ``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).
          (16) ``reentry vehicle'' means any vehicle designed 
        to return substantially intact from Earth orbit or 
        outer space to Earth.'';
          [(9)] (17) ``person'' means an individual and an 
        entity organized or existing under the laws of a State 
        or country.
          [(10)] (18) ``State'' means a State of the United 
        States, the District of Columbia, and a territory or 
        possession of the United States.
          [(11)] (19) ``third party'' means a person except--
                  (A) the United States Government or the 
                Government's contractors or subcontractors 
                involved in launch [services] services, in-
                space transportation activities, or reentry 
                services;
                  (B) a licensee or transferee under this 
                chapter;
                  (C) a licensee's or transferee's contractors, 
                subcontractors, or customers involved in launch 
                [services] services, in-space transportation 
                activities, or reentry services; or
                  (D) the customer's contractors or 
                subcontractors involved in launch [services] 
                services, in-space transportation activities, 
                or reentry services.
          [(12)] (20) ``United States'' means the States of the 
        United States, the District of Columbia, and the 
        territories and possessions of the United States.

Sec. 70103. General authority

  (a) General.--The Secretary of Transportation shall carry out 
this chapter.
  (b) Facilitating Commercial [Launches] Space Activities.--In 
carrying out this chapter, the Secretary shall--
          (1) encourage, facilitate, and promote [commercial 
        space launches] commercial space transportation 
        services by the private sector; and
          (2) take actions to facilitate private sector 
        involvement in commercial space transportation 
        activity, and to promote public-private partnerships 
        involving the United States Government, State 
        governments, and the private sector to build, expand, 
        modernize, or operate [a space launch] space 
        transportation infrastructure.
  (c) Executive Agency Assistance.--When necessary, the head of 
an executive agency shall assist the Secretary in carrying out 
this chapter.

Sec. 70104. [Restrictions on launches and operations] Restrictions on 
                    launches, in-space transportation activities, 
                    operations, and reentries

  (a) License Requirement.--A license issued or transferred 
under this chapter is required for the following:
          (1) for a person to launch a launch vehicle or to 
        operate a launch [site] site, an in-space 
        transportation operations site, reentry site, or 
        reenter a reentry vehicle, in the United States.
          (2) for a citizen of the United States (as defined in 
        section 70102(1) (A) or (B) of this title) to launch a 
        launch vehicle or to operate a launch [site] site, an 
        in-space transportation operations site, reentry site, 
        or reenter a reentry vehicle, outside the United 
        States.
          (3) for a citizen of the United States (as defined in 
        section 70102(1)(C) of this title) to launch a launch 
        vehicle or to operate a launch [site] site, an in-space 
        transportation operations site, reentry site, or 
        reenter a reentry vehicle, outside the United States 
        and outside the territory of a foreign country unless 
        there is an agreement between the United States 
        Government and the government of the foreign country 
        providing that the government of the foreign country 
        has jurisdiction over the [launch or operation.] 
        launch, in-space transportation activity, or reentry 
        operation.
          (4) for a citizen of the United States (as defined in 
        section 70102(1)(C) of this title) to launch a launch 
        vehicle or to operate a launch [site] site, an in-space 
        transportation operations site, reentry site, or 
        reenter a reentry vehicle, in the territory of a 
        foreign country if there is an agreement between the 
        United States Government and the government of the 
        foreign country providing that the United States 
        Government has jurisdiction over the [launch or 
        operation.] launch, in-space transportation activity, 
        or reentry operation.
  [(b) Compliance With Payload Requirements.--The holder of a 
launch license under this chapter may launch a payload only if 
the payload complies with all requirements of the laws of the 
United States related to launching a payload.]
  (b) Compliance With Payload Requirements._The holder of a 
license under this chapter may launch a payload, operate an in-
space transportation vehicle, or reenter a payload only if the 
payload or vehicle complies with all requirements of the laws 
of the United States related to launching a payload, operating 
an in-space transportation vehicle, or reentering a payload.
  (c) [Preventing Launches.--]  Preventing Launches, In-Space 
Transportation Activities, or Reentries._The Secretary of 
Transportation shall establish whether all required licenses, 
authorizations, and permits required for a payload have been 
obtained. If no license, authorization, or permit is required, 
the Secretary may prevent the [launch] launch, in-space 
transportation activity, or reentry if the Secretary decides 
the [launch] launch, in-space transportation activity, or 
reentry would jeopardize the public health and safety, safety 
of property, or national security or foreign policy interest of 
the United States.

Sec. 70105. License applications and requirements

  (a) Applications.--A person may apply to the Secretary of 
Transportation for a license or transfer of a license under 
this chapter in the form and way the Secretary prescribes. 
Consistent with the public health and safety, safety of 
property, and national security and foreign policy interests of 
the United States, the Secretary, not later than 180 days after 
receiving an application, shall issue or transfer a license if 
the Secretary decides in writing that the applicant complies, 
and will continue to comply, with this chapter and regulations 
prescribed under this chapter. The Secretary shall inform the 
applicant of any pending issue and action required to resolve 
the issue if the Secretary has not made a decision not later 
than 120 days after receiving an application.
  (b) Requirements.--
          (1) Except as provided in this subsection, all 
        requirements of the laws of the United States 
        applicable to the launch of a launch vehicle or the 
        operation of a launch [site] site, an in-space 
        transportation control site, or a reentry site or the 
        reentry of a reentry vehicle, are requirements for a 
        license under this chapter.
          (2) The Secretary may prescribe--
                  (A) any term necessary to ensure compliance 
                with this chapter, including on-site 
                verification that a [launch or operation] 
                launch, in-space transportation activity, 
                operation, or reentry complies with 
                representations stated in the application;
                  (B) an additional requirement necessary to 
                protect the public health and safety, safety of 
                property, national security interests, and 
                foreign policy interests of the United States; 
                and
                  (C) by regulation that a requirement of a law 
                of the United States not be a requirement for a 
                license if the Secretary, after consulting with 
                the head of the appropriate executive agency, 
                decides that the requirement is not necessary 
                to protect the public health and safety, safety 
                of property, and national security and foreign 
                policy interests of the United States.
          (3) The Secretary may waive a requirement for an 
        individual applicant if the Secretary decides that the 
        waiver is in the public interest and will not 
        jeopardize the public health and safety, safety of 
        property, and national security and foreign policy 
        interests of the United States.
  (c) Procedures and timetables.--The Secretary shall establish 
procedures and timetables that expedite review of a license 
application and reduce the regulatory burden for an applicant.

Sec. 70106. Monitoring activities

  (a) General Requirements.--A licensee under this chapter must 
allow the Secretary of Transportation to place an officer or 
employee of the United States Government or another individual 
as an observer at a launch [site] site, in-space transportation 
control site, or reentry site the licensee uses, at a 
production facility or assembly site a contractor of the 
licensee uses to produce or assemble a launch [vehicle,] 
vehicle, in-space transportation vehicle, or reentry vehicle or 
at a site at which a payload is integrated with a launch 
[vehicle.] vehicle, in-space transportation vehicle, or reentry 
vehicle. The observer will monitor the activity of the licensee 
or contractor at the time and to the extent the Secretary 
considers reasonable to ensure compliance with the license or 
to carry out the duties of the Secretary under section 70104(c) 
of this title. A licensee must cooperate with an observer 
carrying out this subsection.
  (b) Contracts.--To the extent provided in advance in an 
appropriation law, the Secretary may make a contract with a 
person to carry out subsection (a) of this section.

Sec. 70108. [Prohibition, suspension, and end of launches and operation 
                    of launch sites] Prohibition, suspension, and end 
                    of launches, in-space transportation activities, 
                    reentries, or operation of launch sites, in-space 
                    transportation control sites, or reentry sites

  (a) General Authority.--The Secretary of Transportation may 
prohibit, suspend, or end immediately the launch of a launch 
vehicle or the operation of a launch [site] site, in-space 
transportation control site, in-space transportation activity, 
or reentry site, or reentry of a reentry vehicle, licensed 
under this chapter if the Secretary decides the [launch or 
operation] launch, in-space transportation activity, operation, 
or reentry is detrimental to the public health and safety, the 
safety of property, or a national security or foreign policy 
interest of the United States.
  (b) Effective Periods of Orders.--An order under this section 
takes effect immediately and remains in effect during a review 
under section 70110 of this title.

Sec. 70109. [Preemption of scheduled launches] Preemption of scheduled 
                    launches, in-space transportation activities, or 
                    reentries

  (a) General.--With the cooperation of the Secretary of 
Defense and the Administrator of the National Aeronautics and 
Space Administration, the Secretary of Transportation shall act 
to ensure that a launch or reentry of a payload is not 
preempted from access to a United States Government launch 
[site] site, reentry site, or launch property, nor shall an in-
space transportation activity or operation be preempted, except 
for imperative national need, when a launch date commitment or 
reentry date commitment from the Government has been obtained 
for a launch or reentry licensed under this chapter. A licensee 
or transferee preempted from access to a launch [site] site, 
reentry site, or launch property does not have to pay the 
Government any amount for launch [services] services, or 
services related to a reentry, attributable only to the 
scheduled launch or reentry prevented by the preemption. A 
licensee or transferee preempted from access to a reentry site 
does not have to pay the Government agency responsible for the 
preemption any amount for reentry services attributable only to 
the scheduled reentry prevented by the preemption.
  (b) Imperative National Need Decisions.--In consultation with 
the Secretary of Transportation, the Secretary of Defense or 
the Administrator shall decide when an imperative national need 
requires preemption under subsection (a) of this section. That 
decision may not be delegated.
  (c) Reports.--In cooperation with the Secretary of 
Transportation, the Secretary of Defense or the Administrator, 
as appropriate, shall submit to Congress not later than 7 days 
after a decision to preempt under subsection (a) of this 
section, a report that includes an explanation of the 
circumstances justifying the decision and a schedule for 
ensuring the prompt launching or reentry of a preempted 
payload.

Sec.  70109a. Space advertising

  (a) Licensing.--Notwithstanding the provisions of this 
chapter or any other provision of law, the Secretary shall 
not--
          (1) issue or transfer a license under this chapter; 
        or
          (2) waive the license requirements of this chapter;
for the launch of a payload containing any material to be used 
for the purposes of obtrusive space advertising.
  (b) Launching.--No holder of a license under this chapter may 
launch a payload containing any material to be used for 
purposes of obtrusive space advertising on or after the date of 
enactment of the National Aeronautics and Space Administration 
Authorization Act, Fiscal Year 1996.
  (c) Commercial Space Advertising.--Nothing in this section 
shall apply to nonobtrusive commercial space advertising, 
including advertising on commercial space transportation 
vehicles, space infrastructure, payloads, space launch 
facilities, and launch support facilities.

Sec. 70110. Administrative hearings and judicial review

  (a) Administrative Hearings.--The Secretary of Transportation 
shall provide an opportunity for a hearing on the record to--
          (1) an applicant under this chapter, for a decision 
        of the Secretary under section 70105(a) of this title 
        to issue or transfer a license with terms or deny the 
        issuance or transfer of a license;
          (2) an owner or operator of a payload under this 
        chapter, for a decision of the Secretary under section 
        70104(c) of this title to prevent the [launch] launch, 
        in-space transportation activity, or reentry of the 
        payload; and
          (3) a licensee under this chapter, for a decision of 
        the Secretary under--
                  (A) section 70107 (b) or (c) of this title to 
                modify, suspend, or revoke a license; or
                  (B) section 70108(a) of this title to 
                prohibit, suspend, or end a launch or operation 
                of a launch [site] site, in-space 
                transportation control site, in-space 
                transportation activity, reentry site, or 
                reentry of a reentry vehicle, licensed by the 
                Secretary.
  (b) Judicial Review.--A final action of the Secretary under 
this chapter is subject to judicial review as provided in 
chapter 7 of title 5.

Sec. 70111. Acquiring United States Government property and services

  (a) General Requirements and Considerations.--
          (1) The Secretary of Transportation shall facilitate 
        and encourage the acquisition by the private sector and 
        State governments of--
                  (A) launch or reentry property of the United 
                States Government that is excess or otherwise 
                is not needed for public use; and
                  (B) launch services, in-space transportation 
                activities, or reentry services, including 
                utilities, of the Government otherwise not 
                needed for public use.
          (2) In acting under paragraph (1) of this subsection, 
        the Secretary shall consider the commercial 
        availability on reasonable terms of substantially 
        equivalent launch or reentry  property or launch 
        [services] services, in-space transportation 
        activities, or reentry services, from a domestic 
        source.
  (b) Price.--
          (1) In this subsection, ``direct costs'' means the 
        actual costs that--
                  (A) can be associated unambiguously with a 
                commercial [launch] launch, in-space 
                transportation activity, or reentry effort; and
                  (B) the Government would not incur if there 
                were no commercial [launch] launch, in-space 
                transportation activity, or reentry effort.
          (2) In consultation with the Secretary, the head of 
        the executive agency providing the property or service 
        under subsection (a) of this section shall establish 
        the price for the property or service. The price for--
                  (A) acquiring launch property by sale or 
                transaction instead of sale is the fair market 
                value;
                  (B) acquiring launch property (except by sale 
                or transaction instead of sale) is an amount 
                equal to the direct costs, including specific 
                wear and tear and property damage, the 
                Government incurred because of acquisition of 
                the property; and
                  (C) launch [services] services, in-space 
                transportation activities or services, or 
                reentry services is an amount equal to the 
                direct costs, including the basic pay of 
                Government civilian and contractor personnel, 
                the Government incurred because of acquisition 
                of the services.
  (c) Collection by Secretary.--The Secretary may collect a 
payment under this section with the consent of the head of the 
executive agency establishing the price. Amounts collected 
under this subsection shall be deposited in the Treasury. 
Amounts (except for excess launch property) shall be credited 
to the appropriation from which the cost of providing the 
property or services was paid.
  [(d) Collection by Other Governmental Heads.--The head of a 
department, agency, or instrumentality of the Government may 
collect a payment for an activity involved in producing a 
launch vehicle or its payload for launch if the activity was 
agreed to by the owner or manufacturer of the launch vehicle or 
payload.]
  (d) Collection by Other Governmental Heads._The head of a 
department, agency, or instrumentality of the Government may 
collect a payment for any activity involved in producing a 
launch vehicle, in-space transportation vehicle, or reentry 
vehicle or its payload for launch, in-space transportation 
activity, or reentry if the activity was agreed to by the owner 
or manufacturer of the launch vehicle, in-space transportation 
vehicle, reentry vehicle, or payload.

Sec. 70112. Liability insurance and financial responsibility 
                    requirements

  (a) General Requirements.--
          (1) When a license is issued or transferred under 
        this chapter, the licensee or transferee shall obtain 
        liability insurance or demonstrate financial 
        responsibility in amounts to compensate for the maximum 
        probable loss from claims by--
                  (A) a third party for death, bodily injury, 
                or property damage or loss resulting from an 
                activity carried out under the license; and
                  (B) the United States Government against a 
                person for damage or loss to Government 
                property resulting from an activity carried out 
                under the license.
          (2) The Secretary of Transportation shall determine 
        the amounts required under paragraph (1)(A) and (B) of 
        this subsection, after consulting with the 
        Administrator of the National Aeronautics and Space 
        Administration, the Secretary of the Air Force, and the 
        heads of other appropriate executive agencies.
          (3) For the total claims related to one [launch,] 
        launch or reentry, or to the operations of each in-
        space transportation vehicle, a licensee or transferee 
        is not required to obtain insurance or demonstrate 
        financial responsibility of more than--
                  (A)(i) $500,000,000 under paragraph (1)(A) of 
                this subsection; or
                  (ii) $100,000,000 under paragraph (1)(B) of 
                this subsection; or
                  (B) the maximum liability insurance available 
                on the world market at reasonable cost if the 
                amount is less than the applicable amount in 
                clause (A) of this paragraph.
          (4) An insurance policy or demonstration of financial 
        responsibility under this subsection shall protect the 
        following, to the extent of their potential liability 
        for involvement in launch [services,] services, in-
        space transportation activities, or reentry services at 
        no cost to the Government:
                  (A) the Government.
                  (B) executive agencies and personnel, 
                contractors, and subcontractors of the 
                Government.
                  (C) contractors, subcontractors, and 
                customers of the licensee or transferee.
                  (D) contractors and subcontractors of the 
                customer.
  (b) Reciprocal Waiver of Claims.--
          (1) A license issued or transferred under this 
        chapter shall contain a provision requiring the 
        licensee or transferee to make a reciprocal waiver of 
        claims with its contractors, subcontractors, and 
        customers, and contractors and subcontractors of the 
        customers, involved in launch [services] services, in-
        space transportation activities, or reentry services 
        under which each party to the waiver agrees to be 
        responsible for property damage or loss it sustains, or 
        for personal injury to, death of, or property damage or 
        loss sustained by its own employees resulting from an 
        activity carried out under the applicable license.
          (2) The Secretary of Transportation shall make, for 
        the Government, executive agencies of the Government 
        involved in launch [services,] services, in-space 
        transportation activities, or reentry services and 
        contractors and subcontractors involved in launch 
        [services,] services, in-space transportation 
        activities, or reentry services a reciprocal waiver of 
        claims with the licensee or transferee, contractors, 
        subcontractors, and customers of the licensee or 
        transferee, and contractors and subcontractors of the 
        customers, involved in launch [services] services, in-
        space transportation activities, or reentry services 
        under which each party to the waiver agrees to be 
        responsible for property damage or loss it sustains, or 
        for personal injury to, death of, or property damage or 
        loss sustained by its own employees resulting from an 
        activity carried out under the applicable license. The 
        waiver applies only to the extent that claims are more 
        than the amount of insurance or demonstration of 
        financial responsibility required under subsection 
        (a)(1)(B) of this section. After consulting with the 
        Administrator and the Secretary of the Air Force, the 
        Secretary of Transportation may waive, for the 
        Government and a department, agency, and 
        instrumentality of the Government, the right to recover 
        damages for damage or loss to Government property to 
        the extent insurance is not available because of a 
        policy exclusion the Secretary of Transportation 
        decides is usual for the type of insurance involved.
  (c) Determination of Maximum Probable Losses.--The Secretary 
of Transportation shall determine the maximum probable losses 
under subsection (a)(1)(A) and (B) of this section associated 
with an activity under a license not later than 90 days after a 
licensee or transferee requires a determination and submits all 
information the Secretary requires. The Secretary shall amend 
the determination as warranted by new information.
  (d) Annual Report.--
          (1) Not later than November 15 of each year, the 
        Secretary of Transportation shall submit to the 
        Committee on Commerce, Science, and Transportation of 
        the Senate and the Committee on [Science, Space, and 
        Technology] Science of the House of Representatives a 
        report on current determinations made under subsection 
        (c) of this section related to all issued licenses and 
        the reasons for the determinations.
          (2) Not later than May 15 of each year, the Secretary 
        of Transportation shall review the amounts specified in 
        subsection (a)(3)(A) of this section and submit a 
        report to Congress that contains proposed adjustments 
        in the amounts to conform with changed liability 
        expectations and availability of insurance on the world 
        market. The proposed adjustment takes effect 30 days 
        after a report is submitted.
  (e) [Launches] Launches, In-space Transportation Activities, 
or Reentries Involving Government Facilities and Personnel.--
The Secretary of Transportation shall establish requirements 
consistent with this chapter for proof of financial 
responsibility and other assurances necessary to protect the 
Government and its executive agencies and personnel from 
liability, death, bodily injury, or property damage or loss as 
a result of a launch or operation of a launch [site] site, in-
space transportation control site, or control or an in-space 
transportation vehicle or activity, or reentry site or a 
reentry involving a facility or personnel of the Government. 
The Secretary may not relieve the Government of liability under 
this subsection for death, bodily injury, or property damage or 
loss resulting from the willful misconduct of the Government or 
its agents.
  (f) Collection and Crediting Payments.--The head of a 
department, agency, or instrumentality of the Government shall 
collect a payment owed for damage or loss to Government 
property under its jurisdiction or control resulting from an 
activity carried out under a license issued or transferred 
under this chapter. The payment shall be credited to the 
current applicable appropriation, fund, or account of the 
department, agency, or instrumentality.

Sec.  70113. Paying claims exceeding liability insurance and financial 
                    responsibility requirements

  (a) General Requirements.--
          (1) To the extent provided in advance in an 
        appropriation law or to the extent additional 
        legislative authority is enacted providing for paying 
        claims in a compensation plan submitted under 
        subsection (d) of this section, the Secretary of 
        Transportation shall provide for the payment by the 
        United States Government of a successful claim 
        (including reasonable litigation or settlement 
        expenses) of a third party against a licensee or 
        transferee under this chapter, a contractor, 
        subcontractor, or customer of the licensee or 
        transferee, or a contractor or subcontractor of a 
        customer, resulting from an activity carried out under 
        the license issued or transferred under this chapter 
        for death, bodily injury, or property damage or loss 
        resulting from an activity carried out under the 
        license. However, claims may be paid under this section 
        only to the extent the total amount of successful 
        claims related to one [launch--] launch, operation of 
        one in-space transportation vehicle, or one reentry--
                  (A) is more than the amount of insurance or 
                demonstration of financial responsibility 
                required under section 70112(a)(1)(A) of this 
                title; and
                  (B) is not more than $ 1,500,000,000 (plus 
                additional amounts necessary to reflect 
                inflation occurring after January 1, 1989) 
                above that insurance or financial 
                responsibility amount.
          (2) The Secretary may not provide for paying a part 
        of a claim for which death, bodily injury, or property 
        damage or loss results from willful misconduct by the 
        licensee or transferee. To the extent insurance 
        required under section 70112(a)(1)(A) of this title is 
        not available to cover a successful third party 
        liability claim because of an insurance policy 
        exclusion the Secretary decides is usual for the type 
        of insurance involved, the Secretary may provide for 
        paying the excluded claims without regard to the 
        limitation contained in section 70112(a)(1).
  (b) Notice, Participation, and Approval.--Before a payment 
under subsection (a) of this section is made--
          (1) notice must be given to the Government of a 
        claim, or a civil action related to the claim, against 
        a party described in subsection (a)(1) of this section 
        for death, bodily injury, or property damage or loss;
          (2) the Government must be given an opportunity to 
        participate or assist in the defense of the claim or 
        action; and
          (3) the Secretary must approve any part of a 
        settlement to be paid out of appropriations of the 
        Government.
  (c) Withholding Payments.--The Secretary may withhold a 
payment under subsection (a) of this section if the Secretary 
certifies that the amount is not reasonable. However, the 
Secretary shall deem to be reasonable the amount of a claim 
finally decided by a court of competent jurisdiction.
  (d) Surveys, Reports, and Compensation Plans.--
          (1) If as a result of an activity carried out under a 
        license issued or transferred under this chapter the 
        total of claims related to one launch is likely to be 
        more than the amount of required insurance or 
        demonstration of financial responsibility, the 
        Secretary shall--
                  (A) survey the causes and extent of damage; 
                and
                  (B) submit expeditiously to Congress a report 
                on the results of the survey.
          (2) Not later than 90 days after a court 
        determination indicates that the liability for the 
        total of claims related to one launch may be more than 
        the required amount of insurance or demonstration of 
        financial responsibility, the President, on the 
        recommendation of the Secretary, shall submit to 
        Congress a compensation plan that--
                  (A) outlines the total dollar value of the 
                claims;
                  (B) recommends sources of amounts to pay for 
                the claims;
                  (C) includes legislative language required to 
                carry out the plan if additional legislative 
                authority is required; and
                  (D) for a single event or incident, may not 
                be for more than $ 1,500,000,000.
          (3) A compensation plan submitted to Congress under 
        paragraph (2) of this subsection shall--
                  (A) have an identification number; and
                  (B) be submitted to the Senate and the House 
                of Representatives on the same day and when the 
                Senate and House are in session.
  (e) Congressional Resolutions.--
          (1) In this subsection, ``resolution''--
                  (A) means a joint resolution of Congress the 
                matter after the resolving clause of which is 
                as follows: ``That the Congress approves the 
                compensation plan numbered -------- submitted 
                to the Congress on ---- --, 19--.'', with the 
                blank spaces being filled appropriately; but
                  (B) does not include a resolution that 
                includes more than one compensation plan.
          (2) The Senate shall consider under this subsection a 
        compensation plan requiring additional appropriations 
        or legislative authority not later than 60 calendar 
        days of continuous session of Congress after the date 
        on which the plan is submitted to Congress.
          (3) A resolution introduced in the Senate shall be 
        referred immediately to a committee by the President of 
        the Senate. All resolutions related to the same plan 
        shall be referred to the same committee.
          (4)(A) If the committee of the Senate to which a 
        resolution has been referred does not report the 
        resolution within 20 calendar days after it is 
        referred, a motion is in order to discharge the 
        committee from further consideration of the resolution 
        or to discharge the committee from further 
        consideration of the plan.
          (B) A motion to discharge may be made only by an 
        individual favoring the resolution and is highly 
        privileged (except that the motion may not be made 
        after the committee has reported a resolution on the 
        plan). Debate on the motion is limited to one hour, to 
        be divided equally between those favoring and those 
        opposing the resolution. An amendment to the motion is 
        not in order. A motion to reconsider the vote by which 
        the motion is agreed to or disagreed to is not in 
        order.
          (C) If the motion to discharge is agreed to or 
        disagreed to, the motion may not be renewed and another 
        motion to discharge the committee from another 
        resolution on the same plan may not be made.
          (5)(A) After a committee of the Senate reports, or is 
        discharged from further consideration of, a resolution, 
        a motion to proceed to the consideration of the 
        resolution is in order at any time, even though a 
        similar previous motion has been disagreed to. The 
        motion is highly privileged and is not debatable. An 
        amendment to the motion is not in order. A motion to 
        reconsider the vote by which the motion is agreed to or 
        disagreed to is not in order.
          (B) Debate on the resolution referred to in 
        subparagraph (A) of this paragraph is limited to not 
        more than 10 hours, to be divided equally between those 
        favoring and those opposing the resolution. A motion 
        further to limit debate is not debatable. An amendment 
        to, or motion to recommit, the resolution is not in 
        order. A motion to reconsider the vote by which the 
        resolution is agreed to or disagreed to is not in 
        order.
          (6) The following shall be decided in the Senate 
        without debate:
                  (A) a motion to postpone related to the 
                discharge from committee.
                  (B) a motion to postpone consideration of a 
                resolution.
                  (C) a motion to proceed to the consideration 
                of other business.
                  (D) an appeal from a decision of the chair 
                related to the application of the rules of the 
                Senate to the procedures related to resolution.
  (f) Application.--This section applies to a license issued or 
transferred under this chapter for which the Secretary receives 
a complete and valid application not later than December 31, 
1999.

Sec. 70115. Enforcement and penalty

  (a) Prohibitions.--A person may not violate this chapter, a 
regulation prescribed under this chapter, or any term of a 
license issued or transferred under this chapter.
  (b) General Authority.--
          (1) In carrying out this chapter, the Secretary of 
        Transportation may--
                  (A) conduct investigations and inquiries;
                  (B) administer oaths;
                  (C) take affidavits; and
                  (D) under lawful process--
                          (i) enter at a reasonable time a 
                        launch site, in-space transportation 
                        control site, or reentry site, 
                        production facility, assembly site of a 
                        launch [vehicle,] vehicle, in-space 
                        transportation vehicle, or reentry 
                        vehicle or site at which a payload is 
                        integrated with a launch [vehicle] 
                        vehicle, in-space transportation 
                        vehicle, or reentry vehicle to inspect 
                        an object to which this chapter applies 
                        or a record or report the Secretary 
                        requires be made or kept under this 
                        chapter; and
                          (ii) seize the object, record, or 
                        report when there is probable cause to 
                        believe the object, record, or report 
                        was used, is being used, or likely will 
                        be used in violation of this chapter.
          (2) The Secretary may delegate a duty or power under 
        this chapter related to enforcement to an officer or 
        employee of another executive agency with the consent 
        of the head of the agency.
  (c) Civil Penalty.--
          (1) After notice and an opportunity for a hearing on 
        the record, a person the Secretary finds to have 
        violated subsection (a) of this section is liable to 
        the United States Government for a civil penalty of not 
        more than $ 100,000. A separate violation occurs for 
        each day the violation continues.
          (2) In conducting a hearing under paragraph (1) of 
        this subsection, the Secretary may--
                  (A) subpoena witnesses and records; and
                  (B) enforce a subpoena in an appropriate 
                district court of the United States.
          (3) The Secretary shall impose the civil penalty by 
        written notice. The Secretary may compromise or remit a 
        penalty imposed, or that may be imposed, under this 
        section.
          (4) The Secretary shall recover a civil penalty not 
        paid after the penalty is final or after a court enters 
        a final judgment for the Secretary.

Sec. 70117. Relationship to other executive agencies, laws, and 
                    international obligations

  (a) Executive Agencies.--Except as provided in this chapter, 
a person is not required to obtain from an executive agency a 
license, approval, waiver, or exemption to launch a launch 
vehicle or operate a launch [site.] site, perform in-space 
transportation activities or operate an in-space transportation 
control site or reentry site, or reenter a reentry vehicle.
  (b) Federal Communications Commission and Secretary of 
Commerce.--This chapter does not affect the authority of--
          (1) the Federal Communications Commission under the 
        Communications Act of 1934 (47 U.S.C. 151 et seq.); or
          (2) the Secretary of Commerce under the Land Remote-
        Sensing Commercialization Act of 1984 (15 U.S.C. 4201 
        et seq.).
  (c) States and Political Subdivisions.--A State or political 
subdivision of a State--
          (1) may not adopt or have in effect a law, 
        regulation, standard, or order inconsistent with this 
        chapter; but
          (2) may adopt or have in effect a law, regulation, 
        standard, or order consistent with this chapter that is 
        in addition to or more stringent than a requirement of, 
        or regulation prescribed under, this chapter.
  (d) Consultation.--The Secretary of Transportation is 
encouraged to consult with a State to simplify and expedite the 
approval of a space [launch] launch, perform an in-space 
transportation activity, or reentry activity.
  (e) Foreign Countries.--The Secretary of Transportation 
shall--
          (1) carry out this chapter consistent with an 
        obligation the United States Government assumes in a 
        treaty, convention, or agreement in force between the 
        Government and the government of a foreign country; and
          (2) consider applicable laws and requirements of a 
        foreign country when carrying out this chapter.
  [(f) Launch Not an Export.--A launch vehicle or payload that 
is launched is not, because of the launch, an export for 
purposes of a law controlling exports.
  [(g) Nonapplication.--This chapter does not apply to--
          [(1) a launch, operation of a launch vehicle or 
        launch site, or other space activity the Government 
        carries out for the Government; or
          [(2) planning or policies related to the launch, 
        operation, or activity.]
  (f) Launch Not an Export or 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 for 
purposes of a law controlling exports or imports.
  (g) Nonapplication._This chapter does not apply to--
          (1) a launch, in-space transportation activity, 
        reentry, operation of a launch vehicle, in-space 
        transportation vehicle, or reentry vehicle, or of a 
        launch site, in-space transportation control site, or 
        reentry site, or other space activity the Government 
        carries out for the Government; or
          (2) planning or policies related to the launch, in-
        space transportation activity, reentry, or operation.

[Sec. 70118. User fees

  [The Secretary of Transportation may collect a user fee for a 
regulatory or other service conducted under this chapter [49 
U.S.C. 70101 et seq.] only if specifically authorized by this 
chapter [49 U.S.C. 70101 et seq.].]

Sec. 70120. 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.

                                
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