[House Report 105-347]
[From the U.S. Government Publishing Office]
105th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 105-347
_______________________________________________________________________
COMMERCIAL SPACE ACT OF 1997
_______________________________________________________________________
October 24, 1997.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Sensenbrenner, from the Committee on Science, submitted the
following
R E P O R T
[To accompany H.R. 1702]
[Including cost estimate of the Congressional Budget Office]
The Committee on Science, to whom was referred the bill
(H.R. 1702) To encourage the development of a commercial space
industry in the United States, and for other purposes, having
considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
C O N T E N T S
Page
I. Amendment.......................................................2
II. Purpose of the Bill............................................13
III. Background and Need for the Legislation........................13
IV. Summary of Hearings............................................14
V. Summary of Major Provisions of the Bill........................18
VI. Section-by-Section Analysis (By Title and Section) and Committee
Views..........................................................19
VII. Committee Cost Estimate........................................32
VIII. Congressional Budget Office Cost Estimate......................33
IX. Compliance with Public Law 104-4...............................36
X. Committee Oversight Findings and Recommendations...............36
XI. Oversight Findings and Recommendations by the Committee on
Government Reform and Oversight................................36
XII. Constitutional Authority Statement.............................36
XIII. Federal Advisory Committee Statement...........................36
XIV. Congressional Accountability Act...............................36
XV. Effects of Legislation on Inflation............................37
XVI. Changes in Existing Law Made by the Bill, as Reported..........37
XVII. Committee Recommendations......................................60
XVIII.Proceedings of Subcommittee Markup.............................61
IX. Proceedings of Full Committee Markup..........................117
I. Amendment
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Commercial Space
Act of 1997''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES
Sec. 101. Commercialization of space station.
Sec. 102. Commercial space launch amendments.
Sec. 103. Launch voucher demonstration program.
Sec. 104. Promotion of United States Global Positioning System
standards.
Sec. 105. Acquisition of space science data.
Sec. 106. Administration of Commercial Space Centers.
TITLE II--REMOTE SENSING
Sec. 201. Land Remote Sensing Policy Act of 1992 amendments.
Sec. 202. Acquisition of earth science data.
TITLE III--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES
Sec. 301. Requirement to procure commercial space transportation
services.
Sec. 302. Acquisition of space transportation services.
Sec. 303. Launch Services Purchase Act of 1990 amendments.
SEC. 2. DEFINITIONS.
For purposes of this Act--
(1) the term ``Administrator'' means the Administrator of
the National Aeronautics and Space Administration;
(2) the term ``commercial provider'' means any person
providing space transportation services or other space-related
activities, primary control of which is held by persons other
than Federal, State, local, and foreign governments;
(3) the term ``payload'' means anything that a person
undertakes to transport to, from, or within outer space, or in
suborbital trajectory, by means of a space transportation
vehicle, but does not include the space transportation vehicle
itself except for its components which are specifically
designed or adapted for that payload;
(4) the term ``space-related activities'' includes research
and development, manufacturing, processing, service, and other
associated and support activities;
(5) the term ``space transportation services'' means the
preparation of a space transportation vehicle and its payloads
for transportation to, from, or within outer space, or in
suborbital trajectory, and the conduct of transporting a
payload to, from, or within outer space, or in suborbital
trajectory;
(6) the term ``space transportation vehicle'' means any
vehicle constructed for the purpose of operating in, or
transporting a payload to, from, or within, outer space, or in
suborbital trajectory, and includes any component of such
vehicle not specifically designed or adapted for a payload;
(7) the term ``State'' means each of the several States of
the Union, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and any other
commonwealth, territory, or possession of the United States;
and
(8) the term ``United States commercial provider'' means a
commercial provider, organized under the laws of the United
States or of a State, which is--
(A) more than 50 percent owned by United States
nationals; or
(B) a subsidiary of a foreign company and the
Secretary of Transportation finds that--
(i) such subsidiary has in the past
evidenced a substantial commitment to the
United States market through--
(I) investments in the United
States in long-term research,
development, and manufacturing
(including the manufacture of major
components and subassemblies); and
(II) significant contributions to
employment in the United States; and
(ii) the country or countries in which such
foreign company is incorporated or organized,
and, if appropriate, in which it principally
conducts its business, affords reciprocal
treatment to companies described in
subparagraph (A) comparable to that afforded to
such foreign company's subsidiary in the United
States, as evidenced by--
(I) providing comparable
opportunities for companies described
in subparagraph (A) to participate in
Government sponsored research and
development similar to that authorized
under this Act;
(II) providing no barriers, to
companies described in subparagraph (A)
with respect to local investment
opportunities, that are not provided to
foreign companies in the United States;
and
(III) providing adequate and
effective protection for the
intellectual property rights of
companies described in subparagraph
(A).
TITLE I--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES
SEC. 101. COMMERCIALIZATION OF SPACE STATION.
(a) Policy.--The Congress declares that a priority goal of
constructing the International Space Station is the economic
development of Earth orbital space. The Congress further declares that
free and competitive markets create the most efficient conditions for
promoting economic development, and should therefore govern the
economic development of Earth orbital space. The Congress further
declares that the use of free market principles in operating,
servicing, allocating the use of, and adding capabilities to the Space
Station, and the resulting fullest possible engagement of commercial
providers and participation of commercial users, will reduce Space
Station operational costs for all partners and the Federal Government's
share of the United States burden to fund operations.
(b) Reports.--(1) The Administrator shall deliver to the Committee
on Science of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate, within 90 days
after the date of the enactment of this Act, a study that identifies
and examines--
(A) the opportunities for commercial providers to play a
role in International Space Station activities, including
operation, use, servicing, and augmentation;
(B) the potential cost savings to be derived from
commercial providers playing a role in each of these
activities;
(C) which of the opportunities described in subparagraph
(A) the Administrator plans to make available to commercial
providers in fiscal year 1998 and 1999;
(D) the specific policies and initiatives the Administrator
is advancing to encourage and facilitate these commercial
opportunities; and
(E) the revenues and cost reimbursements to the Federal
Government from commercial users of the Space Station.
(2) The Administrator shall deliver to the Committee on Science of
the House of Representatives and the Committee on Commerce, Science,
and Transportation of the Senate, within 180 days after the date of the
enactment of this Act, an independently-conducted market study that
examines and evaluates potential industry interest in providing
commercial goods and services for the operation, servicing, and
augmentation of the International Space Station, and in the commercial
use of the International Space Station. This study shall also include
updates to the cost savings and revenue estimates made in the study
described in paragraph (1) based on the external market assessment.
(3) The Administrator shall deliver to the Congress, no later than
the submission of the President's annual budget request for fiscal year
1999, a report detailing how many proposals (whether solicited or not)
the National Aeronautics and Space Administration received during
calendar year 1997 regarding commercial operation, servicing,
utilization, or augmentation of the International Space Station, broken
down by each of these four categories, and specifying how many
agreements the National Aeronautics and Space Administration has
entered into in response to these proposals, also broken down by these
four categories.
(4) Each of the studies and reports required by paragraphs (1),
(2), and (3) shall include consideration of the potential role of State
governments as brokers in promoting commercial participation in the
International Space Station program.
SEC. 102. COMMERCIAL SPACE LAUNCH AMENDMENTS.
(a) Amendments.--Chapter 701 of title 49, United States Code, is
amended--
(1) in the table of sections--
(A) by amending the item relating to section 70104
to read as follows:
``70104. Restrictions on launches, operations, and reentries.'';
(B) by amending the item relating to section 70108
to read as follows:
``70108. Prohibition, suspension, and end of launches, operation of
launch sites and reentry sites, and reentries.'';
(C) by amending the item relating to section 70109
to read as follows:
``70109. Preemption of scheduled launches or reentries.'';
and
(D) by adding at the end the following new items:
``70120. Regulations.
``70121. Report to Congress.''.
(2) in section 70101--
(A) by inserting ``microgravity research,'' after
``information services,'' in subsection (a)(3);
(B) by inserting ``, reentry,'' after ``launching''
both places it appears in subsection (a)(4);
(C) by inserting ``, reentry vehicles,'' after
``launch vehicles'' in subsection (a)(5);
(D) by inserting ``and reentry services'' after
``launch services'' in subsection (a)(6);
(E) by inserting ``, reentries,'' after
``launches'' both places it appears in subsection
(a)(7);
(F) by inserting ``, reentry sites,'' after
``launch sites'' in subsection (a)(8);
(G) by inserting ``and reentry services'' after
``launch services'' in subsection (a)(8);
(H) by inserting ``reentry sites,'' after ``launch
sites,'' in subsection (a)(9);
(I) by inserting ``and reentry site'' after
``launch site'' in subsection (a)(9);
(J) by inserting ``, reentry vehicles,'' after
``launch vehicles'' in subsection (b)(2);
(K) by striking ``launch'' in subsection (b)(2)(A);
(L) by inserting ``and reentry'' after ``conduct of
commercial launch'' in subsection (b)(3);
(M) by striking ``launch'' after ``and transfer
commercial'' in subsection (b)(3); and
(N) by inserting ``and development of reentry
sites,'' after ``launch-site support facilities,'' in
subsection (b)(4);
(3) in section 70102--
(A) in paragraph (3)--
(i) by striking ``and any payload'' and
inserting in lieu thereof ``or reentry vehicle
and any payload from Earth'';
(ii) by striking the period at the end of
subparagraph (C) and inserting in lieu thereof
a comma; and
(iii) by adding after subparagraph (C) the
following:
``including activities involved in the preparation of a launch
vehicle or payload for launch, when those activities take place
at a launch site in the United States.'';
(B) in paragraph (5)--
(i) by redesignating subparagraphs (A) and
(B) as subparagraphs (B) and (C), respectively;
and
(ii) by inserting before subparagraph (B),
as so redesignated by clause (i) of this
subparagraph, the following new subparagraph:
``(A) activities directly related to the
preparation of a launch site or payload facility for
one or more launches;'';
(C) by inserting ``or reentry vehicle'' after
``means of a launch vehicle'' in paragraph (8);
(D) by redesignating paragraphs (10), (11), and
(12) as paragraphs (14), (15), and (16), respectively;
(E) by inserting after paragraph (9) the following
new paragraphs:
``(10) `reenter' and `reentry' mean to return or attempt to
return, purposefully, a reentry vehicle and its payload, if
any, from Earth orbit or from outer space to Earth.
``(11) `reentry services' means--
``(A) activities involved in the preparation of a
reentry vehicle and its payload, if any, for reentry;
and
``(B) the conduct of a reentry.
``(12) `reentry site' means the location on Earth to which
a reentry vehicle is intended to return (as defined in a
license the Secretary issues or transfers under this chapter).
``(13) `reentry vehicle' means a vehicle designed to return
from Earth orbit or outer space to Earth, or a reusable launch
vehicle designed to return from outer space to Earth,
substantially intact.''; and
(F) by inserting ``or reentry services'' after
``launch services'' each place it appears in paragraph
(15), as so redesignated by subparagraph (D) of this
paragraph;
(4) in section 70103(b)--
(A) by inserting ``and Reentries'' after
``Launches'' in the subsection heading;
(B) by inserting ``and reentries'' after
``commercial space launches'' in paragraph (1); and
(C) by inserting ``and reentry'' after ``space
launch'' in paragraph (2);
(5) in section 70104--
(A) by amending the section designation and heading
to read as follows:
``Sec. 70104. Restrictions on launches, operations, and reentries'';
(B) by inserting ``or reentry site, or to reenter a
reentry vehicle,'' after ``operate a launch site'' each
place it appears in subsection (a);
(C) by inserting ``or reentry'' after ``launch or
operation'' in subsection (a)(3) and (4);
(D) in subsection (b)--
(i) by striking ``launch license'' and
inserting in lieu thereof ``license'';
(ii) by inserting ``or reenter'' after
``may launch''; and
(iii) by inserting ``or reentering'' after
``related to launching''; and
(E) in subsection (c)--
(i) by amending the subsection heading to
read as follows: ``Preventing Launches and
Reentries.--'';
(ii) by inserting ``or reentry'' after
``prevent the launch''; and
(iii) by inserting ``or reentry'' after
``decides the launch'';
(6) in section 70105--
(A) by inserting ``(1)'' before ``A person may
apply'' in subsection (a);
(B) by striking ``receiving an application'' both
places it appears in subsection (a) and inserting in
lieu thereof ``accepting an application in accordance
with criteria established pursuant to subsection
(b)(2)(D)'';
(C) by adding at the end of subsection (a) the
following: ``The Secretary shall transmit to the
Committee on Science of the House of Representatives
and the Committee on Commerce, Science, and
Transportation of the Senate a written notice not later
than 30 days after any occurrence when a license is not
issued within the deadline established by this
subsection.
``(2) In carrying out paragraph (1), the Secretary may establish
procedures for safety approvals of launch vehicles, reentry vehicles,
safety systems, processes, services, or personnel that may be used in
conducting licensed commercial space launch or reentry activities.'';
(D) by inserting ``or a reentry site, or the
reentry of a reentry vehicle,'' after ``operation of a
launch site'' in subsection (b)(1);
(E) by striking ``or operation'' and inserting in
lieu thereof ``, operation, or reentry'' in subsection
(b)(2)(A);
(F) by striking ``and'' at the end of subsection
(b)(2)(B);
(G) by striking the period at the end of subsection
(b)(2)(C) and inserting in lieu thereof ``; and'';
(H) by adding at the end of subsection (b)(2) the
following new subparagraph:
``(D) regulations establishing criteria for accepting or
rejecting an application for a license under this chapter
within 60 days after receipt of such application.''; and
(I) by inserting ``, including the requirement to
obtain a license,'' after ``waive a requirement'' in
subsection (b)(3);
(7) in section 70106(a)--
(A) by inserting ``or reentry site'' after
``observer at a launch site'';
(B) by inserting ``or reentry vehicle'' after
``assemble a launch vehicle''; and
(C) by inserting ``or reentry vehicle'' after
``with a launch vehicle'';
(8) in section 70108--
(A) by amending the section designation and heading
to read as follows:
``Sec. 70108. Prohibition, suspension, and end of launches, operation
of launch sites and reentry sites, and reentries'';
and
(B) in subsection (a)--
(i) by inserting ``or reentry site, or
reentry of a reentry vehicle,'' after
``operation of a launch site''; and
(ii) by inserting ``or reentry'' after
``launch or operation'';
(9) in section 70109--
(A) by amending the section designation and heading
to read as follows:
``Sec. 70109. Preemption of scheduled launches or reentries'';
(B) in subsection (a)--
(i) by inserting ``or reentry'' after
``ensure that a launch'';
(ii) by inserting ``, reentry site,'' after
``United States Government launch site'';
(iii) by inserting ``or reentry date
commitment'' after ``launch date commitment'';
(iv) by inserting ``or reentry'' after
``obtained for a launch'';
(v) by inserting ``, reentry site,'' after
``access to a launch site'';
(vi) by inserting ``, or services related
to a reentry,'' after ``amount for launch
services''; and
(vii) by inserting ``or reentry'' after
``the scheduled launch''; and
(C) in subsection (c), by inserting ``or reentry''
after ``prompt launching'';
(10) in section 70110--
(A) by inserting ``or reentry'' after ``prevent the
launch'' in subsection (a)(2); and
(B) by inserting ``or reentry site, or reentry of a
reentry vehicle,'' after ``operation of a launch site''
in subsection (a)(3)(B);
(11) in section 70111--
(A) by inserting ``or reentry'' after ``launch'' in
subsection (a)(1)(A);
(B) by inserting ``and reentry services'' after
``launch services'' in subsection (a)(1)(B);
(C) by inserting ``or reentry services'' after ``or
launch services'' in subsection (a)(2);
(D) by inserting ``or reentry'' after ``commercial
launch'' both places it appears in subsection (b)(1);
(E) by inserting ``or reentry services'' after
``launch services'' in subsection (b)(2)(C);
(F) by inserting after subsection (b)(2) the
following new paragraph:
``(3) The Secretary shall ensure the establishment of uniform
guidelines for, and consistent implementation of, this section by all
Federal agencies.'';
(G) by striking ``or its payload for launch'' in
subsection (d) and inserting in lieu thereof ``or
reentry vehicle, or the payload of either, for launch
or reentry''; and
(H) by inserting ``, reentry vehicle,'' after
``manufacturer of the launch vehicle'' in subsection
(d);
(12) in section 70112--
(A) in subsection (a)(1), by inserting ``launch or
reentry'' after ``(1) When a'';
(B) by inserting ``or reentry'' after ``one
launch'' in subsection (a)(3);
(C) by inserting ``or reentry services'' after
``launch services'' in subsection (a)(4);
(D) in subsection (b)(1), by inserting ``launch or
reentry'' after ``(1) A'';
(E) by inserting ``or reentry services'' after
``launch services'' each place it appears in subsection
(b);
(F) by inserting ``applicable'' after ``carried out
under the'' in paragraphs (1) and (2) of subsection
(b);
(G) by striking ``, Space, and Technology'' in
subsection (d)(1);
(H) by inserting ``or Reentries'' after
``Launches'' in the heading for subsection (e);
(I) by inserting ``or reentry site or a reentry''
after ``launch site'' in subsection (e); and
(J) in subsection (f), by inserting ``launch or
reentry'' after ``carried out under a'';
(13) in section 70113(a)(1) and (d)(1) and (2), by
inserting ``or reentry'' after ``one launch'' each place it
appears;
(14) in section 70115(b)(1)(D)(i)--
(A) by inserting ``reentry site,'' after ``launch
site,''; and
(B) by inserting ``or reentry vehicle'' after
``launch vehicle'' both places it appears;
(15) in section 70117--
(A) by inserting ``or reentry site, or to reenter a
reentry vehicle'' after ``operate a launch site'' in
subsection (a);
(B) by inserting ``or reentry'' after ``approval of
a space launch'' in subsection (d);
(C) by amending subsection (f) to read as follows:
``(f) Launch Not an Export; Reentry Not an Import.--A launch
vehicle, reentry vehicle, or payload that is launched or reentered is
not, because of the launch or reentry, an export or import,
respectively, for purposes of a law controlling exports or imports.'';
and
(D) in subsection (g)--
(i) by striking ``operation of a launch
vehicle or launch site,'' in paragraph (1) and
inserting in lieu thereof ``reentry, operation
of a launch vehicle or reentry vehicle,
operation of a launch site or reentry site,'';
and
(ii) by inserting ``reentry,'' after
``launch,'' in paragraph (2); and
(16) by adding at the end the following new sections:
``Sec. 70120. Regulations
``(a) In General.--The Secretary of Transportation, within 9 months
after the date of the enactment of this section, shall issue
regulations to carry out this chapter that include--
``(1) guidelines for industry and State governments to
obtain sufficient insurance coverage for potential damages to
third parties;
``(2) procedures for requesting and obtaining licenses to
launch a commercial launch vehicle;
``(3) procedures for requesting and obtaining operator
licenses for launch;
``(4) procedures for requesting and obtaining launch site
operator licenses; and
``(5) procedures for the application of government
indemnification.
``(b) Reentry.--The Secretary of Transportation, within 6 months
after the date of the enactment of this section, shall issue a notice
of proposed rulemaking to carry out this chapter that includes--
``(1) procedures for requesting and obtaining licenses to
reenter a reentry vehicle;
``(2) procedures for requesting and obtaining operator
licenses for reentry; and
``(3) procedures for requesting and obtaining reentry site
operator licenses.
``Sec. 70121. Report to Congress
``The Secretary of Transportation shall submit to Congress an
annual report to accompany the President's budget request that--
``(1) describes all activities undertaken under this
chapter, including a description of the process for the
application for and approval of licenses under this chapter and
recommendations for legislation that may further commercial
launches and reentries; and
``(2) reviews the performance of the regulatory activities
and the effectiveness of the Office of Commercial Space
Transportation.''.
(b) Effective Date.--The amendments made by subsection (a)(6)(B)
shall take effect upon the effective date of final regulations issued
pursuant to section 70105(b)(2)(D) of title 49, United States Code, as
added by subsection (a)(6)(H).
SEC. 103. LAUNCH VOUCHER DEMONSTRATION PROGRAM.
Section 504 of the National Aeronautics and Space Administration
Authorization Act, Fiscal Year 1993 (15 U.S.C. 5803) is amended--
(1) in subsection (a)--
(A) by striking ``the Office of Commercial Programs
within''; and
(B) by striking ``Such program shall not be
effective after September 30, 1995.'';
(2) by striking subsection (c); and
(3) by redesignating subsections (d) and (e) as subsections
(c) and (d), respectively.
SEC. 104. PROMOTION OF UNITED STATES GLOBAL POSITIONING SYSTEM
STANDARDS.
(a) Finding.--The Congress finds that the Global Positioning
System, including satellites, signal equipment, ground stations, data
links, and associated command and control facilities, has become an
essential element in civil, scientific, and military space development
because of the emergence of a United States commercial industry which
provides Global Positioning System equipment and related services.
(b) International Cooperation.--In order to support and sustain the
Global Positioning System in a manner that will most effectively
contribute to the national security, public safety, scientific, and
economic interests of the United States, the Congress encourages the
President to--
(1) ensure the operation of the Global Positioning System
on a continuous worldwide basis free of direct user fees; and
(2) enter into international agreements that promote
cooperation with foreign governments and international
organizations to--
(A) establish the Global Positioning System and its
augmentations as an acceptable international standard;
and
(B) eliminate any foreign barriers to applications
of the Global Positioning System worldwide.
SEC. 105. ACQUISITION OF SPACE SCIENCE DATA.
(a) Acquisition From Commercial Providers.--The Administrator
shall, to the maximum extent possible and while satisfying the
scientific requirements of the National Aeronautics and Space
Administration, acquire, where cost effective, space science data from
a commercial provider.
(b) Treatment of Space Science Data as Commercial Item Under
Acquisition Laws.--Acquisitions of space science data by the
Administrator shall be carried out in accordance with applicable
acquisition laws and regulations (including chapters 137 and 140 of
title 10, United States Code), except that space science data shall be
considered to be a commercial item for purposes of such laws and
regulations (including section 2306a of title 10, United States Code
(relating to cost or pricing data), section 2320 of such title
(relating to rights in technical data) and section 2321 of such title
(relating to validation of proprietary data restrictions)).
(c) Definition.--For purposes of this section, the term ``space
science data'' includes scientific data concerning the elemental and
mineralogical resources of the moon, asteroids, planets and their
moons, and comets, and solar storm monitoring.
(d) Safety Standards.--Nothing in this section shall be construed
to prohibit the Federal Government from requiring compliance with
applicable safety standards.
(e) Limitation.--This section does not authorize the National
Aeronautics and Space Administration to provide financial assistance
for the development of commercial systems for the collection of space
science data.
SEC. 106. ADMINISTRATION OF COMMERCIAL SPACE CENTERS.
The Administrator shall administer the Commercial Space Center
program in a coordinated manner from National Aeronautics and Space
Administration headquarters.
TITLE II--REMOTE SENSING
SEC. 201. LAND REMOTE SENSING POLICY ACT OF 1992 AMENDMENTS.
(a) Findings.--The Congress finds that--
(1) a robust domestic United States industry in high
resolution Earth remote sensing is in the economic, employment,
technological, scientific, and national security interests of
the United States;
(2) to secure its national interests the United States must
nurture a commercial remote sensing industry that leads the
world;
(3) the Federal Government must provide policy and
regulations that promote a stable business environment for that
industry to succeed and fulfill the national interest;
(4) it is the responsibility of the Federal Government to
create domestic and international conditions favorable to the
health and growth of the United States commercial remote
sensing industry; and
(5) it is a fundamental goal of United States policy to
support and enhance United States industrial competitiveness in
the field of remote sensing, while at the same time protecting
the national security concerns and international obligations of
the United States.
(b) Amendments.--The Land Remote Sensing Policy Act of 1992 is
amended--
(1) in section 2 (15 U.S.C. 5601)--
(A) by amending paragraph (5) to read as follows:
``(5) Commercialization of land remote sensing is a near-
term goal, and should remain a long-term goal, of United States
policy.'';
(B) by striking paragraph (6) and redesignating
paragraphs (7) through (16) as paragraphs (6) through
(15), respectively; and
(C) in paragraph (11), as so redesignated by
subparagraph (B) of this paragraph, by striking
``determining the design'' and all that follows through
``international consortium'' and inserting in lieu
thereof ``ensuring the continuity of Landsat quality
data'';
(2) in section 101 (15 U.S.C. 5611)--
(A) in subsection (c)--
(i) by inserting ``and'' at the end of
paragraph (6);
(ii) by striking paragraph (7); and
(iii) by redesignating paragraph (8) as
paragraph (7); and
(B) in subsection (e)(1)--
(i) by inserting ``and'' at the end of
subparagraph (A);
(ii) by striking ``, and'' at the end of
subparagraph (B) and inserting in lieu thereof
a period; and
(iii) by striking subparagraph (C);
(3) in section 201 (15 U.S.C. 5621)--
(A) by inserting ``(1)'' after ``National
Security.--'' in subsection (b);
(B) in subsection (b)(1), as so redesignated by
subparagraph (A) of this paragraph, by striking ``No
license shall be granted by the Secretary unless the
Secretary determines in writing that the applicant will
comply'' and inserting in lieu thereof ``The Secretary
shall grant a license if the Secretary determines that
the activities proposed in the application are
consistent'';
(C) by adding at the end of subsection (b) the
following new paragraph:
``(2) The Secretary, within 6 months after the date of the
enactment of the Commercial Space Act of 1997, shall publish in the
Federal Register a complete and specific list of all information
required to comprise a complete application for a license under this
title. An application shall be considered complete when the applicant
has provided all information required by the list most recently
published in the Federal Register before the date the application was
first submitted. Unless the Secretary has, within 30 days after receipt
of an application, notified the applicant of information necessary to
complete an application, the Secretary may not deny the application on
the basis of the absence of any such information.'';
(D) in subsection (c), by amending the second
sentence thereof to read as follows: ``If the Secretary
has not granted the license within such 120-day period,
the Secretary shall inform the applicant, within such
period, of any pending issues and actions required to
be carried out by the applicant or the Secretary in
order to result in the granting of a license.''; and
(E) in subsection (e)(2)(B), by striking ``and the
importance of promoting widespread access to remote
sensing data from United States and foreign systems'';
(4) in section 202 (15 U.S.C. 5622)--
(A) by striking ``section 506'' in subsection
(b)(1) and inserting in lieu thereof ``section 507'';
(B) in subsection (b)(2), by striking ``as soon as
such data are available and on reasonable terms and
conditions'' and inserting in lieu thereof ``on
reasonable terms and conditions, including the
provision of such data in a timely manner'';
(C) in subsection (b)(6), by striking ``any
agreement'' and inserting in lieu thereof ``any
significant or substantial agreement relating to land
remote sensing''; and
(D) by inserting after paragraph (6) of subsection
(b) the following:
``The Secretary may not seek to enjoin a company from entering into a
foreign agreement the Secretary receives notification of under
paragraph (6) unless the Secretary has, within 30 days after receipt of
such notification, transmitted to the licensee a statement that such
agreement is inconsistent with the national security or international
obligations of the United States, including an explanation of such
inconsistency.'';
(5) in section 203(a)(2) (15 U.S.C. 5623(a)(2)), by
striking ``under this title and'' and inserting in lieu thereof
``under this title and/or'';
(6) in section 204 (15 U.S.C. 5624), by striking ``may''
and inserting in lieu thereof ``shall'';
(7) in section 205(c) (15 U.S.C. 5625(c)), by striking ``if
such remote sensing space system is licensed by the Secretary
before commencing operation'' and inserting in lieu thereof
``if such private remote sensing space system will be licensed
by the Secretary before commencing its commercial operation'';
(8) by adding at the end of title II the following new
section:
``SEC. 206. NOTIFICATION.
``(a) Limitations on Licensee.--Not later than 30 days after a
determination by the Secretary to require a licensee to limit
collection or distribution of data from a system licensed under this
title, the Secretary shall provide written notification to Congress of
such determination, including the reasons therefor, the limitations
imposed on the licensee, and the period during which such limitations
apply.
``(b) Termination, Modification, or Suspension.--Not later than 30
days after an action by the Secretary to seek an order of injunction or
other judicial determination pursuant to section 202(b) or section
203(a)(2), the Secretary shall provide written notification to Congress
of such action and the reasons therefor.'';
(9) in section 301 (15 U.S.C. 5631)--
(A) by inserting ``, that are not being
commercially developed'' after ``and its environment''
in subsection (a)(2)(B); and
(B) by adding at the end the following new
subsection:
``(d) Duplication of Commercial Sector Activities.--The Federal
Government shall not undertake activities under this section which
duplicate activities available from the United States commercial
sector, unless such activities would result in significant cost savings
to the Federal Government, or are necessary for reasons of national
security or international obligations.'';
(10) in section 302 (15 U.S.C. 5632)--
(A) by striking ``(a) General Rule.--'';
(B) by striking ``, including unenhanced data
gathered under the technology demonstration program
carried out pursuant to section 303,'' and inserting in
lieu thereof ``that is not otherwise available from the
commercial sector''; and
(C) by striking subsection (b);
(11) by repealing section 303 (15 U.S.C. 5633);
(12) in section 401(b)(3) (15 U.S.C. 5641(b)(3)), by
striking ``, including any such enhancements developed under
the technology demonstration program under section 303,'';
(13) in section 501(a) (15 U.S.C. 5651(a)), by striking
``section 506'' and inserting in lieu thereof ``section 507'';
(14) in section 502(c)(7) (15 U.S.C. 5652(c)(7)), by
striking ``section 506'' and inserting in lieu thereof
``section 507''; and
(15) in section 507 (15 U.S.C. 5657)--
(A) by amending subsection (a) to read as follows:
``(a) Responsibility of the Secretary of Defense.--The Secretary
shall consult with the Secretary of Defense on all matters under title
II affecting national security. The Secretary of Defense shall be
responsible for determining those conditions, consistent with this Act,
necessary to meet national security concerns of the United States, and
for notifying the Secretary promptly of such conditions. Not later than
180 days after the date of the enactment of the Commercial Space Act of
1997, the Secretary of Defense shall publish in Commerce Business
Daily, for the purpose of soliciting comments, notice of all national
security concerns that pertain to the licensing of private remote
sensing space systems. Not later than 60 days after receiving a request
from the Secretary, the Secretary of Defense shall notify the Secretary
and the licensee of, and describe in detail, any specific national
security concerns of the United States that the Secretary of Defense
determines are an appropriate reason for delaying, modifying, or
rejecting a license application. The Secretary of Defense shall
concurrently recommend to the Secretary any conditions for a license
issued under title II, consistent with this Act, that the Secretary of
Defense considers necessary to secure the national security concerns of
the United States. If no such notification has been received by the
Secretary within such 60-day period, the Secretary shall deem
activities proposed in the license application to be consistent with
the protection of the national security of the United States.'';
(B) by striking subsection (b)(1) and (2) and
inserting in lieu thereof the following:
``(b) Responsibility of the Secretary of State.--(1) The Secretary
shall consult with the Secretary of State on all matters under title II
affecting international obligations of the United States. The Secretary
of State shall be responsible for determining those conditions,
consistent with this Act, necessary to meet international obligations
of the United States and for notifying the Secretary promptly of such
conditions. Not later than 180 days after the date of the enactment of
the Commercial Space Act of 1997, the Secretary of State shall publish
in Commerce Business Daily, for the purpose of soliciting comments,
notice of all international obligations of the United States that
pertain to the licensing of private remote sensing space systems. Not
later than 60 days after receiving a request from the Secretary, the
Secretary of State shall notify the Secretary and the licensee of, and
describe in detail, any specific international obligations of the
United States that the Secretary of State determines are an appropriate
reason for delaying, modifying, or rejecting a license application. The
Secretary of State shall concurrently recommend to the Secretary any
conditions for a license issued under title II, consistent with this
Act, that the Secretary of State considers necessary to secure the
international obligations of the United States. If no such notification
has been received by the Secretary within such 60-day period, the
Secretary shall deem activities proposed in the license application to
be consistent with the international obligations of the United States.
``(2) Appropriate United States Government agencies are authorized
and encouraged to provide to developing nations, as a component of
international aid, resources for purchasing remote sensing data,
training, and analysis from commercial providers.''; and
(C) in subsection (d), by striking ``Secretary may
require'' and inserting in lieu thereof ``Secretary
shall, where appropriate, require''.
SEC. 202. ACQUISITION OF EARTH SCIENCE DATA.
(a) Acquisition.--For purposes of meeting Government goals for
Mission to Planet Earth, the Administrator shall, to the maximum extent
possible and while satisfying the scientific requirements of the
National Aeronautics and Space Administration, acquire, where cost-
effective, space-based and airborne Earth remote sensing data,
services, distribution, and applications from a commercial provider.
(b) Treatment as Commercial Item Under Acquisition Laws.--
Acquisitions by the Administrator of the data, services, distribution,
and applications referred to in subsection (a) shall be carried out in
accordance with applicable acquisition laws and regulations (including
chapters 137 and 140 of title 10, United States Code), except that such
data, services, distribution, and applications shall be considered to
be a commercial item for purposes of such laws and regulations
(including section 2306a of title 10, United States Code (relating to
cost or pricing data), section 2320 of such title (relating to rights
in technical data) and section 2321 of such title (relating to
validation of proprietary data restrictions)).
(c) Study.--(1) The Administrator shall conduct a study to
determine the extent to which the baseline scientific requirements of
Mission to Planet Earth can be met by commercial providers, and how the
National Aeronautics and Space Administration will meet such
requirements which cannot be met by commercial providers.
(2) The study conducted under this subsection shall--
(A) make recommendations to promote the availability of
information from the National Aeronautics and Space
Administration to commercial providers to enable commercial
providers to better meet the baseline scientific requirements
of Mission to Planet Earth;
(B) make recommendations to promote the dissemination to
commercial providers of information on advanced technology
research and development performed by or for the National
Aeronautics and Space Administration; and
(C) identify policy, regulatory, and legislative barriers
to the implementation of the recommendations made under this
subsection.
(3) The results of the study conducted under this subsection shall
be transmitted to the Congress within 6 months after the date of the
enactment of this Act.
(d) Safety Standards.--Nothing in this section shall be construed
to prohibit the Federal Government from requiring compliance with
applicable safety standards.
(e) Administration and Execution.--This section shall be carried
out as part of the Commercial Remote Sensing Program at the Stennis
Space Center.
TITLE III--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES
SEC. 301. REQUIREMENT TO PROCURE COMMERCIAL SPACE TRANSPORTATION
SERVICES.
(a) In General.--Except as otherwise provided in this section, the
Federal Government shall acquire space transportation services from
United States commercial providers whenever such services are required
in the course of its activities. To the maximum extent practicable, the
Federal Government shall plan missions to accommodate the space
transportation services capabilities of United States commercial
providers.
(b) Exceptions.--The Federal Government shall not be required to
acquire space transportation services under subsection (a) if, on a
case-by-case basis, the Administrator or, in the case of a national
security issue, the Secretary of the Air Force, determines that--
(1) a payload requires the unique capabilities of the space
shuttle;
(2) cost effective space transportation services that meet
specific mission requirements would not be reasonably available
from United States commercial providers when required;
(3) the use of space transportation services from United
States commercial providers poses an unacceptable risk of loss
of a unique scientific opportunity;
(4) the use of space transportation services from United
States commercial providers is inconsistent with national
security objectives;
(5) it is more cost effective to transport a payload in
conjunction with a test or demonstration of a space
transportation vehicle owned by the Federal Government; or
(6) a payload can make use of the available cargo space on
a Space Shuttle mission as a secondary payload, and such
payload is consistent with the requirements of research,
development, demonstration, scientific, commercial, and
educational programs authorized by the Administrator.
(c) Delayed Effect.--Subsection (a) shall not apply to space
transportation services and space transportation vehicles acquired or
owned by the Federal Government before the date of the enactment of
this Act, or with respect to which a contract for such acquisition or
ownership has been entered into before such date.
(d) Historical Purposes.--This section shall not be construed to
prohibit the Federal Government from acquiring, owning, or maintaining
space transportation vehicles solely for historical display purposes.
SEC. 302. ACQUISITION OF SPACE TRANSPORTATION SERVICES.
(a) Treatment of Space Transportation Services as Commercial Item
Under Acquisition Laws.--Acquisitions of space transportation services
by the Federal Government shall be carried out in accordance with
applicable acquisition laws and regulations (including chapters 137 and
140 of title 10, United States Code), except that space transportation
services shall be considered to be a commercial item for purposes of
such laws and regulations (including section 2306a of title 10, United
States Code (relating to cost or pricing data), section 2320 of such
title (relating to rights in technical data) and section 2321 of such
title (relating to validation of proprietary data restrictions)).
(b) Safety Standards.--Nothing in this section shall be construed
to prohibit the Federal Government from requiring compliance with
applicable safety standards.
SEC. 303. LAUNCH SERVICES PURCHASE ACT OF 1990 AMENDMENTS.
The Launch Services Purchase Act of 1990 (42 U.S.C. 2465b et seq.)
is amended--
(1) by striking section 202;
(2) in section 203--
(A) by striking paragraphs (1) and (2); and
(B) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively;
(3) by striking sections 204 and 205; and
(4) in section 206--
(A) by striking ``(a) Commercial Payloads on the
Space Shuttle.--''; and
(B) by striking subsection (b).
II. Purpose of the Bill
The purpose of the bill is to encourage the development of
a commercial space industry in the United States by
streamlining government regulatory procedures and unleashing
the creativity and energies of American entrepreneurship.
II. Background and Need for the Legislation
The Department of Commerce estimated that revenue from
commercial space activity in the United States totaled some
$7.5 billion in 1995. For more than a decade, commercial space
businesses have grown faster than the economy and proven
relatively recession-proof. This success comes despite the fact
that commercial space ventures are particularly capital-
intensive and often involve more risk than more traditional
terrestrial businesses.
Congress and the White House have supported and encouraged
growth and development of this industry on a bipartisan basis,
regardless of which political party controlled either branch of
government. For example, a Democratic Congress and a Republican
President worked together in 1992 to pass the Land Remote
Sensing Policy Act of 1992 (P.L. 102-555), a law which enabled
the private sector to design, build, launch, and operate
commercial remote sensing satellites.
During the course of its first term, the Clinton
Administration has developed and published a range of policy
statements that continue the work of his predecessors,
Presidents Reagan and Bush, in establishing a stable business
environment from which the commercial sector can create new
space businesses and jobs. Those policies deal with space
transportation, commercial remote sensing, and the Global
Positioning System. Additionally, the President issued a new
National Space Policy on September 19, 1996 which reinforced
the government's support of commercial space development,
noting that ``expanding U.S. commercial space activities will
generate economic benefits for the Nation and provide the U.S.
Government with an increasing range of space goods and
services.'' The policy further declared that support of
commercial space activity would be undertaken without federal
subsidies. Taking the position that the government's role is
more appropriately limited to creating a stable and predictable
environment in which the entrepreneurial spirit of American
enterprise can succeed, the policy states, ``Commercial space
sector activities shall be supervised or regulated only to the
extent required by law, national security, international
obligations and public safety.''
The Committee agrees with the President's position and
supports his policy initiatives designed to advance U.S.
commercial interests in space development. Since the passage of
the 1992 legislation and the announcement of policies intended
to create a stable business environment for developing space
commercially, the government and the commercial sector have
identified possible areas of improvement.
H.R. 1702, the Commercial Space Act of 1997, is a modest
step in improving the legal and regulatory framework for
commercial space development. Yet, as Neil Armstrong noted upon
departing the Lunar Excursion Module to leave the first extra-
terrestrial footprints in the history of humanity, giant leaps
often begin with small, and modest, steps.
H.R. 1702 will achieve several goals. One purpose of the
bill is to codify the best aspects of existing space policy, so
that the merits of the policies themselves are established in a
more stable framework. Another purpose is to incorporate
lessons learned from past efforts to create law and policy for
the promotion of commercial space activity. Finally, many
commercial space ventures relate directly to the production and
dissemination of information. Thus, they form part of the
technological base for the new information economy and require
a more streamlined and proactive legal and regulatory
environment if the United States is to lead the world into the
information age.
The bill is necessary because commercial activity in space
is still at a very early stage of development. Its progress is
measured in the work of relatively small, entrepreneurial
companies. Like any young industry, commercial space business
is vulnerable to the inconsistencies and sudden changes of
government policy. H.R. 1702 is necessary to ensure consistency
in government policy so that commercial space businesses can
grow with the relatively reliable assurance that government
policy will not change suddenly and drive them out of business
through neglect, inattentiveness, incompetence, or
shortsightedness.
Currently, U.S. companies do not lead the world in several
major areas of commercial space activity, even though they may
have a competitive advantage in the quality of goods and
services they offer. In many cases, the lack of a U.S. lead in
commercial space is the result of U.S. government policies and
the fact that many of our foreign competitors in commercial
space activity are actually foreign governments. For example,
when it comes to remote sensing systems selling their products
commercially, the most advanced satellites in use today were
either designed, built, launched, owned, or operated by the
governments of France, India, and Canada. In the area of
worldwide commercial space launch, U.S. companies only have
about a 33% share of the market, in part because the U.S.
government drove many U.S. companies out of the launch business
with decisions made in the late 1970's and early 1980's to
launch commercial payloads on the government-owned Space
Shuttle. It took the Challenger disaster in 1986 to force a
change in federal policy, but the U.S. launch industry still
has not completely recovered from earlier government decisions.
IV. Summary of Hearings
The Subcommittee on Space and Aeronautics held three formal
hearings during the first session of the 105th Congress
regarding H.R. 1702, the Commercial Space Act of 1997.
On May 21, 1997, the Subcommittee on Space and Aeronautics
held a hearing entitled, ``The Commercial Space Act of 1997:
Commercial Remote Sensing, Part I.'' The witnesses were: Mr.
Keith Calhoun-Senghor, Director of the Office of Air & Space
Commercialization at the Department of Commerce; Mr. Jeff
Harris, President of Space Imaging Incorporated; Dr. Susan
Moran, Physical Scientist for the Southwest Watershed Research
Center at the U.S. Department of Agriculture; Dr. John
Townshend, Professor at the University of Maryland; and Dr.
Molly Macauley, Senior Fellow at Resources for the Future.
Purpose of Hearing
The purpose of this hearing was to seek input on the
commercial remote sensing provisions of H.R. 1702, the
Commercial Space Act of 1997. The hearing focused on: (1)
ongoing and anticipated commercial space activities and their
benefits to the United States; (2) applications of commercial
remote sensing imagery that help to improve life on Earth; (3)
policy issues that surround the creation and future growth of
the emerging remote sensing industry; and (4) identifying
improvements that can be made in the legal and regulatory
environment to support the continued growth of the U.S.
commercial remote sensing industry.
Key Issues
Mr. Keith Calhoun-Senghor, Director of the Office of Air &
Space Commercialization at the Department of Commerce,
discussed a new era that he termed ``new space.'' He maintained
that new space differs dramatically from the previous era of
traditional aerospace in three significant ways: (1) it is
privately funded; (2) it is international; and (3) it will be
Earth's new economic frontier. Mr. Calhoun-Senghor also noted
that the U.S. government is beginning, and must continue, to
treat new space as an industry segment where data is tracked
and analyzed in much the same way as commodities futures or
crop reports are, so that businesses can intelligently
anticipate the future of the aerospace industry.
Mr. Jeff Harris, President of Space Imaging Incorporated,
discussed opportunities that commercial remote sensing can
offer the United States. He also explained the reasons for
expanding interest in commercial remote sensing, including: (1)
adequate technology is available; (2) commercial remote sensing
has become more cost-effective; (3) international clientele
opportunities; and (4) a U.S. aerospace industry that is poised
and ready to further develop this emerging industry.
Dr. Susan Moran, Physical Scientist for the Southwest
Watershed Research Center at the U.S. Department of
Agriculture, testified regarding applications of remote sensing
imagery that help to improve life on Earth and discussed the
value of commercial remote sensing to precision farming.
Dr. John Townshend, Professor at the University of
Maryland, said that to assist development of the commercial
remote sensing industry, we (government and industry) should:
(1) ensure that the scientific community plays a major role in
planning the acquisition of remote sensing data; (2) provide
reliable information on the availability of remote sensing data
to the scientific user; (3) involve the scientific community in
validation and quality assessment of products derived from
remote sensing; and (4) assure that remote sensing products are
delivered in a timely fashion.
Dr. Molly Macauley, Senior Fellow at Resources for the
Future, noted that the profitability of the commercial remote
sensing market is going to depend on continued technological
improvements and cost reductions in spacecraft and
instrumentation. She also suggested that government agencies
could ``auction'' research spacecraft after their original
missions were complete. This would help commercial providers by
eliminating expensive research and development costs.
On May 22, 1997, the Subcommittee on Space and Aeronautics
held a second hearing entitled, ``The Commercial Space Act of
1997: Space Transportation.'' The witnesses were: Mr. Edward A.
Frankle, General Counsel for NASA; Ms. Patti Grace Smith,
Associate Administrator (Acting) for Commercial Space
Transportation at the Federal Aviation Administration (FAA);
Mr. Edward Brady, Managing Partner for Strategic Perspectives
Incorporated; and Mr. Michael S. Kelly, President & CEO of
Kelly Space & Technology Incorporated.
Purpose of Hearing
The purpose of this hearing was to obtain input on various
issues surrounding commercial space transportation for H.R.
1702, the Commercial Space Act of 1997. The hearing focused on:
(1) granting the Office of Commercial Space Transportation the
authority to license reentries of commercial space
transportation vehicles; (2) federal purchase of commercial
space transportation services; (3) U.S. participation in the
establishment of international standards for commercial space
operations; and (4) licensing of in-space transportation.
Key Issues
Mr. Edward A. Frankle, General Counsel for NASA, noted that
policy makers need to review several areas before making a
decision to regulate in-space transportation. These areas
include: international obligations of the United States; public
health and safety; safety of property; and national security
and foreign policy interests of the United States. However, Mr.
Frankle stated that he did not believe that there is any
logical basis for regulating in-space transportation at this
time.
Ms. Patti Grace Smith, Associate Administrator (Acting) for
Commercial Space Transportation at FAA, testified that it is
essential that Congress pass authorizing legislation granting
FAA the authority to license reentries. Further, she maintained
that without such authority, the government would not be able
to provide for public safety or ensure adequate oversight of
commercial space transportation activities involving reentry or
reusable vehicles.
Mr. Edward Brady, Managing Partner for Strategic
Perspectives Incorporated, focused on the necessity to
establish international standards for commercial space
operations. He maintained that commercial space activities
cannot be implemented in a cost-effective manner without
standards that are nationally and internationally recognized
and used.
Mr. Michael S. Kelly, President & CEO of Kelly Space &
Technology Incorporated, said that he believed that authority
to license reentry should be granted to the FAA and that the
government should not continue the practice of financing, with
taxpayer money, the development of commercial launch vehicles
which then compete with privately-financed systems.
On Wednesday, June 4, 1997, the Subcommittee on Space and
Aeronautics held the third and final hearing on ``The
Commercial Space Act of 1997: Commercial Remote Sensing, Part
II.'' The witnesses were: Dr. D. James Baker, Under Secretary
for Oceans and Atmosphere at the U.S. Department of Commerce;
Ms. Cheryl Roby, Principal Deputy to the Assistant Secretary
for Command, Control, Communications, and Intelligence at the
Department of Defense; and Mr. Mike Swiek, Executive Director
for the Global Positioning System Industry Council.
While drafting H.R. 1702, the Commercial Space Act of 1997,
the Committee on Science attempted to seek input from various
agencies and businesses in an effort to make the bill as
favorable, for both the Congress and the Administration, as
possible. Therefore, the Department of State was invited to
participate in this hearing, but unfortunately, a witness was
not sent despite the Committee's attempts over several weeks to
obtain a representative who could provide input from the
Department. The Committee sought input from the Department of
State because the Department makes recommendations, based on
U.S. international obligations, to the Secretary of Commerce
regarding licenses for commercial remote sensing. Subsequent to
the hearing, the Space and Aeronautics Subcommittee Chairman
and Ranking Member each received a position paper from the
Department of State regarding H.R. 1702. While the Committee
appreciates the input from the Department, such input is
valuable legislatively only to the extent that members have the
opportunity to ask questions and explore issues on the record.
The Department's failure to appear before the Committee and
offer its comments in a public forum limit the value or import
that can be given to the Department's concerns, many of which
appear to be inconsistent with existing law in the Land Remote
Sensing Policy Act of 1992 (P.L. 102-555) and the President's
publicly released statements of policy on remote sensing.
Purpose of Hearing
The purpose of this hearing was to seek input on the
commercial remote sensing provisions of H.R. 1702, the
Commercial Space Act of 1997. The hearing explored: (1) the
current legal and regulatory regime for remote sensing in the
Land Remote Sensing Policy Act of 1992 (P.L. 102-555) and White
House policy; (2) lead agency responsibilities (including
national security concerns and international obligations) for
implementing the Land Remote Sensing Policy Act of 1992; (3)
improvements that can be made to the Land Remote Sensing Policy
Act of 1992; (4) interagency cooperation and coordination on
prospective license applications; (5) Department of Defense use
of imagery from existing or planned commercial remote sensing
satellites; and (6) development and growth potential of the
Global Positioning System (GPS) applications industry.
Key Issues
Dr. D. James Baker, Under Secretary for Oceans and
Atmosphere at the U.S. Department of Commerce, testified that
it is the goal of the Department of Commerce, and the
Administration, to provide a policy and regulatory regime which
nurtures and fosters the development of commercial remote
sensing, so that the United States does not squander its lead
and allow other countries to gain competitive advantage in this
high-skill, high-wage industry. Dr. Baker noted industry
concerns about the vagueness of the standard for determining
when imaging must be restricted. Therefore, he reported that
the Department of Commerce is developing regulations which will
achieve a better balance between the burdens on a licensed
operator and national security requirements and international
obligations of the United States regarding remote sensing
practices.
Ms. Cheryl Roby, Principal Deputy to the Assistant
Secretary for Command, Control, Communications, and
Intelligence at the Department of Defense, testified that the
recently completed Quadrennial Defense Review commits the
Department to maximize the use of emerging commercial remote
sensing capabilities. She maintained that for reasons of
national security, the Defense Department is convinced that
provisions allowing for shutter control in emergency situations
should continue. However, Ms. Roby noted that the Defense
Department did not anticipate that shutter control would occur
often or over significant periods of time.
Mr. Mike Swiek, Executive Director for the Global
Positioning System Industry Council, testified that the Global
Positioning System (GPS) has become one of the greatest success
stories of government and industry cooperation. He noted that
proposed language in the Commercial Space Act of 1997
reiterates the need to establish a clear, high-level commitment
to a stable policy environment for the development of
international standards facilitating both private and public
sector investments in GPS. In closing, Mr. Swiek argued that
the most important near-term initiative that the government can
take to promote long-term GPS growth is through passage of
language that supports current efforts to secure international
agreements with our allies to establish GPS and its
augmentations as an accepted international standard.
V. Summary of Major Provisions of the Bill
The major provisions of the bill are the following:
Requires the NASA Administrator to submit a report and
independent market study to Congress identifying commercial
opportunities and evaluating industry interest in playing a
role in International Space Station activities including
operation, use, servicing, or augmentation;
Amends the Commercial Space Launch Act (49 U.S.C. 70101 et
seq.) to establish a statutory framework for the Office of
Commercial Space Transportation to license commercial reentry
activities;
Reaffirms United States policy to make the U.S. Global
Positioning System the world standard and to continue its
operation on a continuous worldwide basis, free of direct user
fees;
Encourages NASA to purchase space science data from
commercial providers instead of building complete systems to
generate the data;
Directs the NASA Administrator to manage the Commercial
Space Centers as a coordinated program out of NASA
headquarters;
Updates the Land Remote Sensing Policy Act of 1992 (P.L.
102-555;
Encourages NASA to buy Earth remote sensing data from
commercial providers and requires a study of how scientific
requirements of Mission to Planet Earth can be met by
commercial providers;
Requires the Federal Government to procure space
transportation services from U.S. commercial providers.
VI. Section-By-Section Analysis and Committee Views
Section 1 Short Title
This Act may be cited as the ``Commercial Space Act of
1997.''
Section 2 Definitions
Provides definitions for terms used in H.R. 1702.
Definitions are provided for NASA Administrator; commercial
provider; payload; space-related activities; space
transportation services; space transportation vehicle; state;
and U.S. commercial provider.
Title I--Promotion of Commercial Space Opportunities
Section 101 Commercialization of Space Station
Sectional Analysis
Requires a report from NASA, within 90 days after
enactment, that identifies and examines the opportunities for
commercial providers to play a role in International Space
Station activities; the potential cost savings from using
commercial providers; details the opportunities the NASA
Administrator plans to make available to commercial providers;
the policies that the NASA Administrator is advancing to
encourage commercial opportunities; and the revenues and cost
reimbursements to the Federal Government from commercial users
of the International Space Station. Requires an independent
market study, 180 days after enactment, that examines and
evaluates potential industry interest in providing commercial
goods and services for the operation, servicing, and
augmentation of the International Space Station. Requires a
report detailing how many proposals NASA received in 1997
regarding commercial operation, servicing, utilization, or
augmentation of the International Space Station, and how many
of these resulted in agreements. The section also directs that
the role of state governments as brokers in promoting space
station commercialization be considered in all three reports.
Committee Views
The Committee has consistently stated its interest, both in
legislation adopted by the House of Representatives and in
authorization and oversight hearings, in the greatest possible
U.S. commercial participation in the operation, servicing,
utilization, and augmentation of the International Space
Station. This is motivated both by a desire to lower costs to
U.S. taxpayers by bringing the efficiencies and the capital
resources of competitive free enterprise to bear on the
International Space Station, and by the Committee's belief that
Earth orbital space is an economic frontier of tremendous
potential and that the International Space Station should be
operated in a matter which helps open up this frontier to
American enterprise.
To this end, H.R. 1702 directs the Administrator of NASA to
produce three reports for the Committee. The first is a short-
term internal study of opportunities for commercialization of
the U.S. portion of the International Space Station. The second
is a 180-day external study of market interest in International
Space Station commercialization. The third is a report for 1997
on how much interest private companies have shown by making
proposals to NASA, and how many agreements NASA has entered
into in response to those proposals.
Section 102 Commercial Space Launch Amendments
Sectional Analysis
This section amends Chapter 701 of title 49, United States
Code, entitled ``Commercial Space Launch Activities,'' which is
a recodification of the Commercial Space Launch Act of 1984
(P.L. 98-575). The purpose of the amendments is to establish a
statutory framework for the licensing of commercial reentry
activities by the Secretary of Transportation, clarify certain
provisions in Chapter 701, and provide for criteria for
accepting a license application.
The Commercial Space Launch Act is further amended to
expand the definition of ``launch services'' to those
activities directly related to the preparation of a launch site
or payload facility. Under Section 70105, the Secretary of
Transportation is directed to notify the authorizing House and
Senate Committees within 30 days after a license has not been
issued within the deadline. The Secretary may establish
procedures for safety approvals of launch vehicles, reentry
vehicles, safety systems, processes, services, or personnel
that may be used in conducting licensed commercial space launch
or reentry activities. The Secretary is also given the
authority to develop regulations establishing criteria for
accepting an application for a license within the 60 days after
receipt of such application.
Program Description
The Department of Transportation, through its Office of
Commercial Space Transportation, is responsible for
implementing Chapter 701 which authorizes the Secretary of
Transportation to license and regulate the non-governmental
space launch of a vehicle and operation of a launch site. In
addition, by virtue of Executive Order 12465, the Department
has lead agency responsibilities within the Executive Branch to
encourage, facilitate, and coordinate development of commercial
expendable launch vehicle operations by private U.S.
enterprises.
Committee Views
When the Commercial Space Launch Act was passed in 1984
(P.L. 98-575) and when it was amended in 1988 (P.L. 100-657),
Congress did not address the full range of space transportation
activities that the private sector could undertake on a
commercial basis. Specifically, commercial space activities
involving reentry vehicles that are returned to Earth from
Earth orbit or outer space were not encompassed, and were not
intended to be encompassed, by the statute. Market demand to
support commercial reentry ventures is emerging. The commercial
sector is beginning to demonstrate technical capability to
undertake such activities if suitable profit-making
opportunities are presented. In recognition of these
developments, the Committee wishes to establish the appropriate
legal framework to ensure public safety is protected while
minimizing regulatory burden, delay or uncertainty that could
inhibit commercial exploitation of reentry capabilities. In
addition to establishing a regulatory regime for commercial
reentries, the Committee intends these amendments to address
certain issues that have arisen regarding the definition of
``launch;'' the extent to which activities before and after
launch may be licensed or regulated; and applicability of the
third party liability provisions of sections 70112 and 70113 of
Chapter 701.
The term ``reentry'' is intended to cover a wide range of
activities, including the act of returning a reusable launch
vehicle to Earth. In establishing the legal framework for
reentry, the Committee's approach is to treat reentry of a
reentry vehicle the same as launch of a launch vehicle.
Reentries described in section 70104(a) must be licensed, just
as launches meeting these same criteria must be licensed. In
addition, amendments to other sections of Chapter 701 grant to
the Secretary the same authority and responsibility with
respect to the licensing and regulation of the reentry of
reentry vehicles as existing law provides to the Secretary with
respect to the launch of vehicles.
An amendment to section 70102 also adds the phrase ``from
Earth'' to the existing definition of ``launch'' in order to
make clear the original intent of the Commercial Space Launch
Act that the launch of a launch vehicle is an event that takes
place from Earth, not from Earth orbit or otherwise from or in
outer space. Although the definition of launch in the original
Act lacks this explicit specification, the Act was otherwise
quite clear that a launch for purposes of the license
requirement takes place from a ``launch site,'' which is
defined in terms of a location ``on Earth.'' Moreover, the
legislative history of the Commercial Space Launch Act
demonstrates that only launches from Earth were envisioned.
The amendment to section 70102 was originally prompted by a
concern that the Department of Transportation was advocating
the position that a reentry is subject to a launch license
requirement on the grounds that reentry entailed the placing of
a launch vehicle in a suborbital trajectory ``from Earth
orbit.'' Although the Department has since abandoned that
position, the Committee wishes by this amendment to register
its emphatic rejection of any interpretation of ``launch'' that
would include space transportation activities that do not begin
from Earth, such as reentry; the transfer of a satellite
between one Earth orbit and another; or any other on-orbit
operation after a launch is completed and before reentry is
initiated.
The Committee intends that for purposes of the license
requirement, reentry begins when the vehicle is prepared
specifically for reentry. By way of definition, the Committee
intends the term to apply to that phase of the overall space
mission during which the reentry is intentionally initiated.
Although this may vary slightly from system to system, as a
general matter the Committee expects reentry to begin when the
vehicle's attitude is oriented for propulsion firing to place
the vehicle on its reentry trajectory.
The Committee acknowledges that in order to issue a
license, the Department must be satisfied that an applicant has
demonstrated capability to carry out a reentry safely and
without jeopardy to critical national interests. The Committee
also appreciates that, to evaluate capability, the Department
may need to examine certain of the applicant's proposed
procedures and activities that would precede initiation of
reentry. However, the Committee wishes to make clear that these
pre-reentry procedures or activities are not events requiring a
license, nor otherwise subject to regulation. Rather, they
would represent aspects of an application that the Department
would have to measure against standards and criteria that the
Department has established are necessary to evaluate capability
to conduct the reentry. These standards and criteria may be
generally applicable to all applicants or specific to a
particular proposal. The Committee urges the Department to take
the steps necessary to ensure that they are clearly articulated
and understandable to license applicants.
There has been much discussion about what activities should
be encompassed by the term ``launch'' for the purposes of the
license requirement. It is the Committee's view that there are
activities that precede flight that: (1) begin at a launch site
in the United States, which may or may not be the actual launch
site for a particular launch in question; (2) entail critical
steps preparatory to initiating flight; (3) are unique to space
launch; and (4) are inherently so hazardous to launch site
personnel or property so as to warrant the Department's
regulatory oversight under Chapter 701.
An array of hazardous pre-flight activities take place at
launch sites in the United States in preparation for the flight
of a launch vehicle. With the advent of new technologies and
launch systems, the Committee finds that these activities may
take place thousands of miles away from the launch site from
which launch takes place, and several weeks or months in
advance of an actual launch date. Nevertheless, they retain
their hazardous nature as well as their direct relationship to
the launch they support. Accordingly, as demonstrated by the
Committee's passage of this bill, the Committee believes that
the statute's definition of launch should be amended so that if
an activity takes place at a launch site in the United States
it will be subject to the oversight of the Office of Commercial
Space Transportation and financial risk allocation scheme of
the statute.
``Launch site in the United States'' means a U.S. site
from which a launch vehicle actually leaves from the surface of
the Earth at any time. This bill does not extend federal launch
licensing or launch oversight authority to a site in the United
States at which limited activities such as launch vehicle and
payload integration and processing occur and form which actual
launch vehicle lift-offs never occur. Such areas are considered
adequately regulated under local, state, and federal law.
The original Act intended that a launch ends, as far as the
launch vehicle's payload is concerned, once the launch vehicle
places the payload in Earth orbit or in the planned trajectory
in outer space. The Committee wishes to make clear that the
Secretary has no authority to license or regulate activities
that take place between the end of the launch phase and the
beginning of the reentry phase, such as maneuvers between two
Earth orbits or other non-reentry operations in Earth orbit; or
after the end of a launch phase in the case of missions where
the payload is not a reentry vehicle.
Sections 70112 and 70113, establishing an allocation of
risk regime, are also amended to cover reentry in the same way
that launches are covered. The Committee notes that these
provisions apply to losses sustained as a result of licensed
activities, (i.e., launches and reentries) not events or
activities between launch and reentry; after reentry; or
uncovered before launch. Once a launch or a reentry is
completed no protection against third party liability is
intended to be provided under Chapter 701 unless there is a
clear causal nexus between the loss and the behavior of the
launch or reentry vehicle. For instance, if, subsequent to a
launch vehicle's successful deployment of a payload that is not
a reentry vehicle, the payload returns to Earth and causes
third party loss, the loss is not intended to be covered by
sections 70112 and 70113. As another example, if during an
airborne launch, the aircraft suffers an accident after the
vehicle has separated from the aircraft and taken off, and the
accident is not attributable to the launch vehicle, then this
event is also not intended to be covered by sections 70112 and
70113.
Current law governing commercial space launch activities
(49 USC 70101 et seq.) includes a provision designating that a
launch vehicle or payload is not to be considered an export
simply due to the launch itself. H.R. 1702 amends this
provision to include reentries which should not be considered
an import simply because of the reentry. Prior to enactment of
the original Commercial Space Launch Act in 1984, the launch of
a launch vehicle was considered an export. The intent of the
original provision, launch not an export, was to obviate the
need for an export license for a commercial launch since such a
launch is not considered an export, in the traditional sense.
There was never any intent that, launch not an export, would
affect foreign trade zone procedures.
The Committee awaits greater clarification of the
licensee's launch/reentry insurance and allocation of risk
requirements through the Department's ongoing rulemaking action
(14 CFR 440). Two new sections were added to Chapter 701,
Sections 70120 and 70121. Section 70120 requires the Secretary
of Transportation within 9 months after the date of enactment,
to issue regulations to give industry guidelines and procedures
related to insurance, launch licenses and government
indemnification. Section 72120 also requires the Secretary of
Transportation, within 6 months after the date of enactment, to
issue a notice of proposed rulemaking related to reentry
licenses. Section 70121 requires the Secretary of
Transportation to submit an annual report on the activities
undertaken under Chapter 701 and the performance of the Office
of Commercial Space Transportation.
Additional amendments authorizing criteria for license application
acceptance
Section 102 also amends Chapter 701 to authorize the
Secretary to issue regulations establishing criteria for
acceptance of a license application. The acceptance or
rejection must be made within 60 days of receipt of the
application. The purpose of this amendment is to: (1) limit the
undue expenditure of Office resources on determining whether an
application is viable; and (2) to provide the applicant with
timely notice of whether the application will be accepted.
Section 103 Launch Voucher Demonstration Program
Sectional Analysis
Section 504 of the Fiscal Year 1993 National Aeronautics
and Space Administration Act (P.L. 102-588) is amended by
striking outdated references to dates and offices.
Committee Views
This section strikes the sunset date of the Launch Voucher
Demonstration Program so that NASA can continue the program if
it wishes to, but does not require continuation of the program.
Section 104 Promotion of United States Global Positioning System
Standards
Sectional Analysis
Encourages the President to ensure the operation of the
U.S. Global Positioning System (GPS) on a continuous worldwide
basis, free of direct user fees and to enter into agreements
that promote cooperation with foreign governments in order to
establish GPS and its augmentations as the accepted
international standard.
Committee Views
The Committee congratulates the Administration for its
policies regarding use of the Global Positioning System. In
general, Members of Congress agree that it is in the U.S.
interest to encourage continued commercial use of this system,
and that it is in the interest of U.S. national security for
the U.S. GPS system to become the world's standard.
Consequently, the Congress expresses its support for this
policy in this section and encourages the Administration to
proceed with international negotiations designed to advance
U.S. national interests and support foreign use of the GPS
system. Finally, the Committee reasserts its support for
ensuring the continuous operation of the GPS signal globally
without direct user fees.
In March 1996, the President released a policy statement on
the U.S. Global Positioning System (GPS). That policy
recognizes the national security benefits of making the U.S.
system the world's standard, as laid out in reports from the
National Academy of Public Administration, the National
Research Council, and the RAND Corporation. A unique
opportunity exists to shape the direction of this global
industry so that it grows in a manner consistent with and
supportive of U.S. national security and economic interests.
Establishing GPS as the world's standard requires the United
States to adopt a mature, even-handed, and reliable role as a
provider of positioning data from the Global Positioning
System.
The Committee understands that the Fiscal Year 1998 defense
authorization bill currently completing conference negotiations
addresses the policy framework for protecting national security
while making GPS the world standard. H.R. 1702 enhances this
message by encouraging the President to enter into agreements
with foreign entities to make GPS the world standard and to
continue the policy of making the GPS signal available globally
without direct user fees. The language offered in H.R. 1702 is
non-binding, and simply expresses Congressional support for the
President's policy. This language helps assure negotiating
partners that the elected officials of the United States
government are speaking with one voice on this issue and is
intended to strengthen the President's negotiating position and
ability to ensure his policies are carried out. The President's
policy is innovative and gives the United States the unique
opportunity to shape the direction of space-based navigation
around the world. The bill supports the President's leadership.
It should also be clear to the State Department that Congress
views its efforts to help negotiate regional agreements to make
the U.S. Global Positioning System the world's standard as
extremely important to U.S. national security and the
continuing success of the U.S. commercial space industry.
Section 105 Acquisition of Space Science Data
Sectional Analysis
This section states that NASA shall, to the maximum extent
possible, acquire space science data from commercial providers,
where cost-effective, and while satisfying scientific
requirements. Acquisitions of space science data are to be
carried out in accordance with applicable acquisition laws and
regulations. Further, space science data is to be treated as a
commercial item under applicable acquisition laws.
Committee Views
The purpose of this section is to encourage the
Administrator of NASA to acquire space science data
commercially. For those data sets with both scientific merit
and commercial appeal, NASA can spur commercial enterprises
while acquiring the data faster and cheaper.
Section 106 Administration of Commercial Space Centers
Sectional Analysis
This section directs the Administrator of NASA to manage
the Commercial Space Centers as a coordinated program out of
NASA Headquarters.
Committee Views
In recent years, due to a series of reorganizations, NASA's
efforts to promote U.S. commercial space activities have grown
increasingly diffuse. In particular, the management of--and
funding decisions regarding--the Commercial Space Centers
(CSCs, formerly known as the Centers for the Commercial
Development of Space) have been transferred to NASA's field
centers. In some cases, either sufficient funding has not been
transferred to maintain CSC activities at planned levels, or
internal field center budget pressures have caused the
reduction or elimination of several CSCs' funding, including an
unscheduled closure of one CSC.
The Committee does believe that NASA can and should close
CSCs which are not performing well according to peer review
standards, but that process should be shielded from any one
field center's budgetary pressures. The best way to do that is
to maintain a unified CSC program based at NASA Headquarters.
The Committee also believes that all parts of NASA, most
especially its field centers, should be actively engaged in
implementing the NASA Act's (National Aeronautics and Space Act
of 1958, as amended 42 U.S.C. 2451) mandate to ``promote the
fullest possible commercial use of space,'' and therefore can
and should build strong technical and even managerial
relationships with CSCs. But it remains NASA headquarters' (and
therefore the Administrator's) responsibility to judge the
performance of, and make budgetary decisions about, CSCs across
disciplines and industry areas according to a coordinated set
of standards and metrics.
Title II--Remote Sensing
Section 201 Land Remote Sensing Policy Act of 1992 Amendments
Sectional Analysis
Updates the Land Remote Sensing Policy Act of 1992 (15
U.S.C. 5601 et seq.). Requires the Secretary of Commerce to
publish a list of requirements for applicants seeking a license
to own and operate a remote sensing satellite. Creates a
presumption of approval for license applications that comply
with title requirements. Prevents the Secretary of Commerce
from seeking to enjoin a licensee from entering into a foreign
agreement unless the Secretary first transmits a determination
to the licensee that such participation is inconsistent with
national security or international obligations. Requires the
Secretary of Commerce to notify Congress of any action to limit
collection or distribution of data. Requires the Secretary of
Commerce to report to Congress any injunctions that it seeks
against a commercial provider. Prohibits the Federal Government
from duplicating commercial provider activities unless such
activities would result in significant savings or are necessary
for reasons of national security or international obligations.
Requires the Secretary of Commerce to consult with the
Secretaries of Defense and State regarding license applications
and the Secretaries of Defense and State to determine whether
such applications are consistent with U.S. national security
interests and international obligations. Treats the absence of
objection from either the Secretary of Defense or State to a
license application as confirmation that the application is
consistent with U.S national security and international
obligations within a specific time period. Encourages the U.S.
government to consider providing vouchers for use of U.S.
commercial remote sensing services and products to developing
nations as a component of U.S. international aid programs.
Committee Views
Congress worked on a bipartisan basis to pass the Land
Remote Sensing Policy Act of 1992 (P.L. 102-555), which
President Bush signed. That law enabled the commercial sector
to design, build, own and operate satellites that image the
Earth from space. Such systems have multiple uses, including
land-use planning, construction site management, precision
agriculture, pollution detection and environmental cleanup. The
Department of Commerce estimates that this market could reach
$2.4 billion by the year 2000. Several foreign governments are
entering this commercial market and directing their government
space agencies or government-owned firms to sell remote sensing
data on the commercial market.
Given this development and 5 years of experience with the
1992 Act, there is a need to update the law and preserve the
competitive advantage that U.S. companies have in this
industry. To its credit, the Department of Commerce has
improved the licensing process considerably since its first
experiences. Both the National Oceanic and Atmospheric
Administration and Office of Air and Space Commercialization
have worked assiduously to draft new regulations and remove
obstacles to the industry's accelerated growth. Nevertheless,
the need to update existing law remains.
The bill establishes a presumption that a license
application which satisfies the requirements of law shall be
granted. While this would seem self-evident, it is the
Committee's intention to signal its strong support of this area
of economic growth. Furthermore, the presumption to grant a
license should make it clear that the burden of proof for
denying a license rests with the Federal Government. In other
words, it is not the license applicant's burden to prove that
it should be allowed to engage in legal commercial activity.
Instead, it is the government's responsibility to clearly
demonstrate that an applicant should not receive a license if
such a license is to be denied. The Secretary of Commerce
continues to retain authority and responsibility to exercise
judgment about the appropriateness of granting an applicant's
license, while the Secretaries of Defense and State
respectively retain their authority to determine that a granted
license is consistent with U.S. national security concerns and
international obligations.
There is a specific timeline in which the Secretary of
Commerce, under current law, has to consider an application for
a license to operate a commercial remote sensing satellite.
Unfortunately, in the case of some licenses that have been
issued under the law, the Commerce Department has exceeded the
timeframe in which it is supposed to rule on a license
application. Part of the problem has occurred at the beginning
of the process, while the Commerce Department and the license
applicant negotiate the information that must be included in an
application in order to consider it complete. The bill requires
the Secretary of Commerce to determine what information is
necessary for an application to be considered complete and to
make its determination public, so that there is a common frame
of reference for all applicants. In this manner, both the
commercial sector and the government will share a common
understanding of the parameters for considering license
applications. It is the Committee's presumption that the 120-
day timeframe in which the United States has to act on a
license application under existing law will not begin until the
license application is considered complete, as determined by
the Department of Commerce.
Another reason the timeframe for granting or denying an
application has been exceeded is the lengthy interagency
process for reviewing license applications. Both the Secretary
of Defense and the Secretary of State review license
applications to ensure that they are consistent with U.S.
national security concerns and international obligations. Both
Departments have taken too long to make such a determination.
The bill requires that they inform the Secretary of Commerce of
any concerns within 60 days of the request from the Secretary
of Commerce. The Committee presumes that the Secretary of
Commerce would not make such a request until a license is
considered complete and the license application contains the
information needed for the Departments of Defense and State to
meet their obligation to respond to the Secretary of Commerce
within 60 days. If no objections are raised by the Secretaries
of Defense and State within this 60-day period, the Secretary
of Commerce is to treat the application as consistent with U.S.
national security and international obligations.
The Committee expects that concerns raised by the
Secretaries of Defense or State about a license application or
the continued operation of a satellite under an existing
license, during times when national security or international
obligations are involved, will be of a sufficient nature to
pass a high standard, such as those that govern prior restraint
of the media. The Committee believes that long-term national
security interests are best served if U.S. companies dominate
the commercial remote sensing industry, which they cannot do if
foreign governments create a more stable legal and regulatory
environment governing remote sensing than the U.S. government.
Today's high technology enterprises and venture capital
markets are globalized, meaning American companies cannot
remain at the cutting edge of technology if they do not have
networks of contacts with overseas entities and access to
foreign-developed expertise. The U.S. government is still
working through all of the issues involved in how it regulates
technology-centered businesses in this new age of globalized
technology. One mechanism is to require U.S. companies to
notify the Federal Government of their arrangements with
foreign entities. The Land Remote Sensing Policy Act of 1992
(P.L. 102-555), the White House Policy on Remote Sensing
(1994), and H.R. 1702, the Commercial Space Act of 1997 all
contain such notification requirements. The intention of the
provision in the Land Remote Sensing Policy Act of 1992 was to
protect U.S. national security interests by ensuring that a
licensee was not controlled by a foreign entity and to provide
information on which customers are obtaining which images.
However, in practice, licensed U.S. commercial remote sensing
satellite firms have been required to report financing and
investment transactions that do not directly affect corporate
control or imaging activities. Additionally, such notification
has triggered an interagency review of the original license
application and the allowable imaging activities. The Committee
believes that this practice exceeds the authority given to the
Executive Branch in the original Act and that it should not be
continued. The President's policy on remote sensing is entirely
correct on this matter. It reads, ``Pursuant to this Act, the
U.S. Government requires U.S. companies that have been issued
operating licenses under the Act to notify the U.S. Government
of its intent to enter into significant or substantial
agreements with new foreign customers.'' Reviews of agreements
between U.S.-licensed companies and foreign entities that
explore more than the distribution of data exceed the authority
contained in the President's policy. The bill's language
regarding ``significant or substantial agreement relating to
land remote sensing'' is not to be viewed as inconsistent with
the existing practice of requiring licensees to notify the
Secretary of Commerce of any significant or substantial
agreements that affect control of the licensee by U.S. persons.
H.R. 1702 requires licensees to notify the government only
of ``any significant or substantial agreement relating to land
remote sensing.'' The bill preserves the ability of the U.S.
government to review images taken by a U.S. company and to
verify that U.S. licensed companies and their satellites remain
under the control of U.S. persons. It does not require
licensees to report every transaction with a foreign entity to
the U.S. government. Therefore, it strikes an appropriate
balance between the need to provide a stable business
environment with the need to provide effective protection of
U.S. national security concerns and international obligations.
To remain in business, high technology enterprises must
make business decisions more quickly than the government does.
The slow pace of government decision-making thus threatens to
hinder the competitive advantage that U.S. firms seek over
their foreign competition. Therefore, the bill requires the
Secretary of Commerce to respond to a notification of a foreign
agreement within 30 days. The bill prohibits the Secretary of
Commerce from seeking to enjoin a U.S. company from entering
into such agreements without notifying the licensee within 30
days that the agreement is inconsistent with U.S. national
security or international obligations. The Secretary of
Commerce is further required to explain such inconsistencies in
detail, since the Federal Government has a responsibility to
tell U.S. citizens engaging in legal commercial activity why it
intends to prohibit them from engaging in legal commercial
activity. Only by telling licensees why agreements are deemed
inconsistent with U.S. national security and international
obligations can the government expect them to make future
efforts to avoid entering into similar agreements. In this
manner, companies will not be forced to waste resources waiting
too long for a government decision. This provision should not
be interpreted as undermining the Secretary's authority under
Section 203 of the Land Remote Sensing Policy Act of 1992 to go
to court to alter a granted license or terminate the operation
of a licensed satellite if the Secretary deems doing so is
necessary to ensure the licensee lives up to its obligation to
operate a remote sensing spacecraft in a manner consistent with
U.S. national security concerns or international obligations.
It is the Committee's interpretation that the Secretary's
authority under Section 203 of the Land Remote Sensing Policy
Act of 1992 exists at all times, regardless of what type of
information about foreign agreements the Secretary has and the
timeframe in which the Secretary received it.
The bill adds a new paragraph to Section 301 of the Land
Remote Sensing Policy Act of 1992. The new paragraph prohibits
the Federal Government from duplicating or otherwise competing
with the commercial sector in offering commercial remote
sensing goods and services, including value-added activity
undertaken by the Geographic Information Systems industry in
the United States. Exceptions are permitted when government
duplication of a commercial activity results in significant
cost savings or is necessary for reasons of national security
or international obligations. Given the extraordinary lengths
to which the government goes to spin technology off into the
commercial sector and thereby create new goods, services, and
jobs, it makes no sense for the government to offer commercial
goods and services that compete with the commercial sector.
This measure does not prohibit public-private partnerships to
create new technology. Rather, it prevents the government from
wasting tax dollars to duplicate goods and services already
available from the commercial sector.
Finally, current law encourages the U.S. government to
provide appropriate imagery to countries receiving foreign aid
as a component of the foreign aid program. Commercial remote
sensing imagery can be very conducive to foreign aid and such
imagery can help the developing world more efficiently manage
its resources and economic growth. Nevertheless, the Committee
does not believe that the U.S. government should be in the
commercial remote sensing business. Therefore, the bill alters
this section of the 1992 Act and encourages U.S. departments
and agencies that manage foreign aid programs to provide
vouchers for developing nations to obtain remote sensing
imagery and interpretative training from commercial providers.
Section 202 Acquisition of Earth Science Data
Sectional Analysis
This section states that NASA shall, to the maximum extent
possible, acquire Earth remote sensing data from commercial
providers, where cost-effective, and while satisfying
scientific requirements. Acquisitions are to be carried out in
accordance with applicable acquisition laws and regulations.
Further, Earth remote sensing data is to be treated as a
commercial item under applicable acquisition laws. The section
also requires a study on how scientific requirements of Mission
to Planet Earth can be met by commercial providers.
Committee Views
This provision of the bill directs NASA to purchase
commercial Earth science data to meet the requirements of
Mission to Planet Earth when such data is cost-effective and
satisfies scientific requirements. Furthermore, the bill
directs NASA to treat such data as a commercial item under
applicable acquisition laws.
The section also directs NASA to conduct a study to
determine how commercial provider capabilities can be best used
to meet Mission to Planet Earth's baseline scientific
requirements. As part of the study, NASA is expected to
determine what steps are necessary by both the commercial
sector and the Federal Government to make this program
efficient and effective. Finally, the study and data purchase
activity is required to be carried out by the Commercial Remote
Sensing Program (CRSP) at the Stennis Space Center. CRSP is
widely acknowledged as one of the Nation's premier institutions
for stimulating private investment in space capabilities that
help meet government needs. Because CRSP is small, streamlined,
and horizontally organized, the program succeeds largely
because it is able to make decisions quickly and enjoys a
degree of autonomy that reduces bureaucratic costs.
Title III--Federal Acquisition of Space Transportation Services
Section 301 Requirement to Procure Commercial Space Transportation
Services
Sectional Analysis
Requires the Federal Government to procure space
transportation services from U.S. commercial providers and, to
the maximum practicable extent, plan missions to accommodate
the space transportation capabilities of U.S. commercial
providers. Exceptions to this policy: the payload requires the
unique capabilities of the Space Shuttle; U.S. commercial
providers cannot provide cost-effective space transportation
services when required; the use of space transportation
services from U.S. commercial providers poses an unacceptable
risk of loss of a unique scientific opportunity; the use of
space transportation services from U.S. commercial providers is
inconsistent with U.S. national security objectives; it is more
cost-effective to launch a payload in conjunction with the test
or demonstration of a space transportation vehicle owned by the
Federal Government; or a payload can make use of the available
cargo space on a Space Shuttle mission as a secondary payload,
and such payload is consistent with specific requirements
authorized by the Administrator. Directs only the Secretary of
the Air Force or the NASA Administrator to make determinations
about when an exception shall be granted. Does not apply to
space transportation services and vehicles acquired or owned by
the Federal Government before the enactment date or to
contracts for such acquisition or ownership that have been
entered into prior to the enactment date.
Committee Views
This provision is intended to promote the operation of a
market in space transportation services that will enable U.S.
commercial space transportation companies to focus their
business on beating foreign competition in providing such
services, rather than on increasing the award fee in contracts
with the Federal Government. To its credit, NASA already
purchases space transportation services commercially. The
Department of Defense, however, continues to purchase space
transportation vehicles instead of services. It is concerned
that the classified nature of many Defense Department payloads
would be at risk if the Department procured commercial space
transportation services from the commercial sector. The
commercial sector actually builds the classified payloads that
Department of Defense launches. If the Defense Department can
accept that the commercial sector can build its classified
payloads, then it should be able to accept the commercial
sector launching them. In any event, the section does address
Defense Department concerns by making an exception to the
requirement to purchase commercial space transportation
services in cases where that is inconsistent with U.S. national
security. Furthermore, the ``case-by-case'' determination by
the Secretary of the Air Force, as required in Title III,
Section 301, paragraph (b), is not required for each individual
launch. The Secretary may make a blanket determination for a
class of payloads--such as Global Positioning System Satellites
or Defense Support Program satellites--as part of the approval
process for a space program acquisition decision.
Section 302 Acquisition of Space Transportation Services
Sectional Analysis
Space transportation services are to be considered a
``commercial item'' for purposes of acquisition laws and
regulations.
Committee Views
Consistent with ongoing efforts to reform the federal
procurement system and reduce the costs of government activity,
this section requires the Federal Government to act in the
manner of a commercial customer when it procures space
transportation services.
Section 303 Launch Services Purchase Act of 1990 Amendments
Sectional Analysis
Updates the Launch Services Purchase Act of 1990 (42 U.S.C.
2465b et seq.)
Committee Views
This section updates the Launch Services Purchase Act to
conform to other sections of the bill. It also preserves the
prohibition against the Space Shuttle launching commercial
payloads.
VII. Committee Cost Estimate
Clause 7(a) of Rule XIII of the Rules of the House of
Representatives requires each committee report accompanying
each bill or joint resolution of a public character to contain:
(1) an estimate, made by such Committee, of the costs which
would be incurred in carrying out such bill or joint resolution
in the fiscal year in which it is reported, and in each of the
5 fiscal years following such fiscal year (or for the
authorized duration of any program authorized by such bill or
joint resolution, if less than 5 years); (2) a comparison of
the estimate of costs described in subparagraph (1) of this
paragraph made by such Committee with an estimate of such costs
made by any government agency and submitted to such Committee;
and (3) when practicable, a comparison of the total estimated
funding level for the relevant program (or programs) with the
appropriate levels under current law. However, clause 7(d) of
that Rule provides that this requirement does not apply when a
cost estimate and comparison prepared by the Director of the
Congressional Budget Office under section 403 of the
Congressional Budget Act of 1974 has been timely submitted
prior to the filing of the report and included in the report
pursuant to clause 2(l)(3)(C) of Rule XI. A cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 403 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of this
report and included in Section VIII of this report pursuant to
clause 2(l)(3)(C) of Rule XI.
Clause 2(l)(3)(B) of Rule XI of the Rules of the House of
Representatives requires each committee report that accompanies
a measure providing new budget authority (other than continuing
appropriations), new spending authority, or new credit
authority, or changes in revenues or tax expenditures to
contain a cost estimate, as required by section 308(a)(1) of
the Congressional Budget Act of 1974 and, when practicable with
respect to estimates of new budget authority, a comparison of
the total estimated funding level for the relevant program (or
programs) to the appropriate levels under current law. H.R.
1702 does not contain any new budget authority, credit
authority, or changes in revenues or tax expenditures. Assuming
that the sums authorized under the bill are appropriated, H.R.
1702 does authorize additional discretionary spending, as
described in the Congressional Budget Office report on the
bill, which is contained in Section VIII of this report.
VIII. Congressional Budget Office Cost Estimate
Congressional Budget Office
U.S. Congress
Washington, DC. 20515
June E. O'Neill, Director
June 24, 1997
Honorable F. James Sensenbrenner, Jr.,
Chairman, Committee on Science,
U.S. House of Representatives,
Washington, DC. 20515
Dear Mr. Chairman:
The Congressional Budget Office has prepared the enclosed cost
estimate for H.R. 1702, the Commercial Space Act of 1997.
If you wish further details on this estimate, we will be pleased to
provide them. The CBO staff contacts are Kathleen Gramp (for federal
costs), who can be reached at 226-2860, Pepper Santalucia (for the
state and local impact), who can be reached at 225-3220, and Lesley
Frymier (for the impact on the private sector), who can be reached at
226-2940.
Sincerely,
James L. Blum for June E. O'Neill
Enclosure
cc: Honorable George E. Brown, Jr., Ranking Minority Member
______
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
June 24, 1997
H.R. 1702
Commercial Space Act of 1997
As ordered reported by the House Committee on Science on June 18, 1997
SUMMARY
H.R. 1702 would revise federal policies related to the procurement
and licensing of services and products provided by the commercial space
industry. Assuming the appropriation of the necessary amounts, CBO
estimates that enacting H.R. 1702 would result in increased
discretionary spending of about $4 million to $7 million over the 1998-
2002 period. Because H.R. 1702 could affect direct spending and
revenues, pay-as-you-go procedures would apply. CBO estimates, however,
that any such effects would be negligible.
The bill contains no intergovernmental mandates as defined in the
Unfunded Mandates Reform Act of 1995 (UMRA), and would not impose any
costs on state, local, or tribal governments. The bill would impose new
private-sector mandates, but CBO estimates that the cost of these
mandates would not exceed the statutory threshold established in UMRA.
This bill would define space transportation services, remote
sensing data, and space science data as ``commercial items'' for the
purposes of certain procurement policies, and would require federal
agencies to acquire these services from the private sector, subject to
certain conditions. It would change the process and conditions for
licensing remote sensing systems and would expand the scope of
licensing of space transportation systems to include reentry vehicles,
sites, and operations. The National Aeronautics and Space
Administration (NASA) would be directed to conduct studies on
opportunities for private sector participation in the International
Space Station and Mission to Planet Earth. Finally, the bill would
encourage the President to promote international acceptance of the U.S.
Global Positioning System as the standard for such systems.
ESTIMATED COST TO THE FEDERAL GOVERNMENT
CBO expects that federal agencies would incur additional costs
ranging from about $4 million to $7 million over the 1998-2002 period
to implement H.R. 1702. Assuming the appropriation of the necessary
amounts, enacting this bill would increase discretionary spending by a
corresponding amount. Provisions related to launch services and the
licensing of reentry vehicles could affect direct spending and
revenues, but CBO estimates that the effects would not be significant.
Spending Subject to Appropriation
The estimated increase in discretionary spending primarily reflects
the costs that would be incurred to implement the reporting and
licensing requirements of the bill. For example, H.R. 1702 would
require the Department of State and the Department of Defense (DOD) to
publish lists of all international agreements and national security
issues that pertain to the licensing of private remote sensing systems
within 180 days after enactment. NASA would have to fund an
independently conducted market study of private-sector interest in
aspects of the space station and report to the Congress on
opportunities associated with the space station and the Mission to
Planet Earth. The bill also would direct the Office of Commercial Space
Transportation (OCST, at the Department of Transportation) to issue
regulations for licensing reentry vehicles, sites, and operations, and
the National Oceanic and Atmospheric Administration (NOAA, at the
Department of Commerce) to revise regulations related to the licensing
of remote sensing space systems. Based on information provided by these
agencies, CBO estimates that the cost of performing these tasks would
total about $2 million to $3 million governmentwide in 1998.
Provisions affecting the acquisition of space-related services are
likely to increase agencies' administrative costs, at least in the
near-term. Under this bill, DOD and NASA would have to issue a
determination supporting the choice of a space transportation system
for each launch rather than making these decisions for clusters of
systems (e.g., based on performance blocks or payload risk). CBO
estimates that federal spending would increase by about $2 million to
$4 million over the 1998-2002 period because of the additional analyses
and studies that would be required to support the choice of services.
According to agency officials, the provisions defining space
transportation services, remote sensing data, and space science data as
``commercial items'' could increase the time and effort involved in
evaluating contracts because that designation would limit the scope of
information readily available from vendors on product specifications.
The potential impact of this change on agencies' costs is difficult to
project with any certainty, however.
CBO estimates that directing NASA to purchase space science and
Earth system data from commercial providers when cost-effective would
not significantly affect federal spending. Several agencies, including
NOAA, the U.S. Geological Survey, and the Federal Emergency Management
Agency, currently buy remote sensing data from NASA at its marginal
cost, which may be less than what they would have to pay if NASA had to
acquire the information from commercial providers. Assuming that NASA
would purchase commercial data only if the terms of the acquisition
would be cost-effective governmentwide, these provisions should not
increase costs to the government. At the same time, very few commercial
ventures now provide the kinds of data used by federal agencies, so
there is no basis for estimating any near-term savings for the
government from this policy.
Likewise, CBO estimates that the provisions in the bill requiring
DOD and NASA to acquire space transportation systems from commercial
providers when cost-effective are unlikely to have a significant effect
on federal spending for launch services over the next five years.
Launch services for most DOD missions planned for the 1998-2002 period,
for example, are already under contract and hence would be exempt from
the mandates that would be imposed by H.R. 1702. Any reduction in the
government's cost of space transportation services resulting from this
bill would most likely occur sometime in the future.
Finally, H.R. 1702 would strengthen the government's obligation to
reimburse licensees of remote sensing systems for the cost of technical
modifications needed to comply with conditions that DOD or the State
Department impose on these licensees for national security purposes.
Because CBO expects these agencies to reimburse licensees for all
appropriate costs under current law, we estimate that requiring such
payments would not significantly change the amounts that would be paid.
Other provisions of the bill would not have a significant effect on
discretionary spending.
Direct Spending
Enacting H.R. 1702 could affect the collecting and spending of
receipts paid by nonfederal entities that use federal launch property
or services, but we estimate that the net impact would not be
significant. Under current law, nonfederal entities reimburse DOD and
NASA for using such facilities and the agencies directly spend the
proceeds to cover the costs incurred. Because any increase in receipts
resulting from additional commercial activity would be offset by direct
spending, the net effect of the bill on direct spending would be
negligible.
Revenues
H.R. 1702 would allow OCST to impose civil penalties on violators
of licensing agreements, which could affect revenues. CBO estimates
that any additional receipts from civil penalties associated with the
OCST licensing activities required by this bill would be insignificant.
To date, OCST has never collected a penalty for a violation of the
licensing and related requirements of the commercial space
transportation program.
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. Enacting H.R. 1702 could
affect direct spending and receipts because of provisions involving
reimbursement for the use of certain federal services and facilities
and imposing civil penalties for failure to comply with space
transportation regulations. CBO estimates, however, that these
provisions would have little or no budgetary impact.
ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS
H.R. 1702 contains no intergovernmental mandates as defined in
UMRA, and would not impose any costs on state, local, or tribal
governments. The bill would broaden the scope of the Department of
Transportation's commercial space transportation program to include
inspace 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 to 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.
ESTIMATED IMPACT ON THE PRIVATE SECTOR
Section 102 would require operators of reentry sites to obtain a
license from the OCST for reentry sites, vehicles, and services. CBO
estimates that the direct costs of these private sector mandates would
not exceed the statutory threshold ($100 million in 1996, adjusted
annually for inflation) established in UMRA in any one year.
PREVIOUS CBO ESTIMATE
On April 21, 1997, CBO transmitted a cost estimate for H.R. 1275,
the Civilian Space Authorization Act, Fiscal Years 1998 and 1999, as
ordered reported by the House Committee on Science on April 16, 1997.
H.R. 1275 included provisions similar to those in H.R. 1702 regarding
OCST licensing and NASA's acquisition of remote sensing and space
science data. Unlike H.R. 1275, the OCST provisions of H.R. 1702 would
not affect direct spending because this bill would not change the
statutory basis of the fees paid to reimburse federal agencies for the
use of launch services or facilities.
ESTIMATE PREPARED BY:
Federal Costs: Kathleen Gramp (226-2860)
Impact on State, Local, and Tribal Governments: Pepper Santalucia
(225-3220)
Impact on the Private Sector: Lesley Frymier (226-2940)
ESTIMATE APPROVED BY:
Paul N. Van de Water, Assistant Director for Budget Analysis
IX. Compliance with Public Law 104-4
H.R. 1702 contains no unfunded mandates.
X. Committee Oversight Findings and Recommendations
Clause 2(l)(3)(A) of Rule XI of the Rules of the House of
Representatives requires each committee report to include
oversight findings and recommendations required pursuant to
clause 2(b)(1) of Rule X. The Committee has no oversight
findings.
XI. Oversight Findings and Recommendations by the Committee on
Government Reform and Oversight
Clause 2(l)(3)(D) of Rule XI of the Rules of the House of
Representatives requires each committee report to contain a
summary of the oversight findings and recommendations made by
the House Government Reform and Oversight Committee pursuant to
clause 4(c)(2) of Rule X, whenever such findings and
recommendations have been submitted to the Committee in a
timely fashion. The Committee on Science has received no such
findings or recommendations from the Committee on Government
Reform and Oversight.
XII. Constitutional Authority Statement
Clause 2(l)(4) of Rule XI of the Rules of the House of
Representatives requires each report of a Committee on a bill
or joint resolution of a public character to include a
statement citing the specific powers granted to the Congress in
the Constitution to enact the law proposed by the bill or joint
resolution. Article 1, section 8 of the Constitution of the
United States grants Congress the authority to enact H.R. 1702.
XIII. Federal Advisory Committee Statement
This legislation does not establish, or authorize the
establishment of, any new Federal Advisory Committee.
XIV. Congressional Accountability Act
The Committee finds that H.R. 1702 does not relate to the
terms and conditions of employment or access to public services
or accommodations within the meaning of section 102(b)(3) of
the Congressional Accountability Act (Public Law 104-1).
XV. Effects of Legislation on Inflation
The legislation should have no effect on inflation rates.
XVI. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3 of rule XIII of the Rules of
the House of Representatives, 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
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
CHAPTER 701 OF TITLE 49, UNITED STATES CODE
* * * * * * *
CHAPTER 701--COMMERCIAL SPACE LAUNCH ACTIVITIES
Sec.
70101. Findings and purposes.
* * * * * * *
[70104. Restrictions on launches and operations.]
70104. Restrictions on launches, operations, and reentries.
* * * * * * *
[70108. Prohibition, suspension, and end of launches and operation of
launch sites.
[70109. Preemption of scheduled launches.]
70108. Prohibition, suspension, and end of launches, operation of
launch sites and reentry sites, and reentries.
70109. Preemption of scheduled launches or reentries.
* * * * * * *
70120. Regulations.
70121. Report to Congress.
Sec. 70101. Findings and purposes
(a) Findings.--Congress finds that--
(1) * * *
* * * * * * *
(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 private
satellite launching, reentry, and associated services
that would complement the launching, reentry, and
associated services now available from the United
States Government;
(5) the development of commercial launch vehicles,
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 services 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, reentries, and associated services
and, only to the extent necessary, regulate those
launches, 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, reentry
sites, and complementary facilities, the providing of
launch services 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, reentry sites,
complementary facilities, and launch site and reentry
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, 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 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,
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) * * *
* * * * * * *
(3) ``launch'' means to place or try to place a
launch vehicle [and any payload] or reentry vehicle and
any payload from Earth--
(A) in a suborbital trajectory;
(B) in Earth orbit in outer space; or
(C) otherwise in outer space[.],
including activities involved in the preparation of a
launch vehicle or payload for launch, when those
activities take place at a launch site in the United
States.
(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 directly related to the
preparation of a launch site or payload
facility for one or more launches;
[(A)] (B) activities involved in the
preparation of a launch vehicle and payload for
launch; and
[(B)] (C) the conduct of a launch.
* * * * * * *
(8) ``payload'' means an object that a person
undertakes to place in outer space by means of a launch
vehicle or reentry vehicle, including components of the
vehicle specifically designed or adapted for that
object.
(9) ``person'' means an individual and an entity
organized or existing under the laws of a State or
country.
(10) ``reenter'' and ``reentry'' mean to return or
attempt to return, purposefully, a reentry vehicle and
its payload, if any, from Earth orbit or from outer
space to Earth.
(11) ``reentry services'' means--
(A) activities involved in the preparation
of a reentry vehicle and its payload, if any,
for reentry; and
(B) the conduct of a reentry.
(12) ``reentry site'' means the location on Earth
to which a reentry vehicle is intended to return (as
defined in a license the Secretary issues or transfers
under this chapter).
(13) ``reentry vehicle'' means a vehicle designed
to return from Earth orbit or outer space to Earth, or
a reusable launch vehicle designed to return from outer
space to Earth, substantially intact.
[(10)] (14) ``State'' means a State of the United
States, the District of Columbia, and a territory or
possession of the United States.
[(11)] (15) ``third party'' means a person except--
(A) the United States Government or the
Government's contractors or subcontractors
involved in launch services 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 or reentry
services; or
(D) the customer's contractors or
subcontractors involved in launch services or
reentry services.
[(12)] (16) ``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 and Reentries.--In
carrying out this chapter, the Secretary shall--
(1) encourage, facilitate, and promote commercial
space launches and reentries 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 and reentry
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]
Sec. 70104. Restrictions on launches, 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 or reentry site, or to 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 or reentry
site, or to 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 or reentry
site, or to 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
or reentry.
(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 or reentry
site, or to 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 or reentry.
(b) Compliance With Payload Requirements.--The holder of a
[launch license] license under this chapter may launch or
reenter a payload only if the payload complies with all
requirements of the laws of the United States related to
launching or reentering a payload.
(c) [Preventing Launches.--] Preventing Launches and
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 or reentry if the Secretary decides the launch 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.--(1) 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] accepting an application in
accordance with criteria established pursuant to subsection
(b)(2)(D), 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] accepting an
application in accordance with criteria established pursuant to
subsection (b)(2)(D). The Secretary shall submit to the
Committee on Science of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate a written notice not later than 30 days after any
occurrence when a license is not issued within the deadline
established by this subsection.
(2) In carrying out paragraph (1), the Secretary may
establish procedures for safety approvals of launch vehicles,
reentry vehicles, safety systems, processes, services, or
personnel that may be used in conducting licensed commercial
space launch or reentry activities.
(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 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], 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[.]; and
(D) regulations establishing criteria for accepting
or rejecting an application for a license under this
chapter within 60 days after receipt of such
application.
(3) The Secretary may waive a requirement, including the
requirement to obtain a license, 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 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 or reentry vehicle, or at a site at which a payload is
integrated with a launch 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.
* * * * * * *
[Sec. 70108. Prohibition, suspension, and end of launches and operation
of launch sites]
Sec. 70108. Prohibition, suspension, and end of launches, operation of
launch sites and reentry sites, and reentries
(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 or reentry site, or
reentry of a reentry vehicle, licensed under this chapter if
the Secretary decides the launch or 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]
Sec. 70109. Preemption of scheduled launches 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, reentry site, or launch property, 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, reentry
site, or launch property does not have to pay the Government
any amount for launch services, or services related to a
reentry, attributable only to the scheduled launch or reentry
prevented by the preemption.
* * * * * * *
(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. 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 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 or 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 and reentry services, including
utilities, of the Government otherwise not needed for
public use.
The Secretary shall establish criteria and procedures for
determining the priority of competing requests from the private
sector and State governments for property and services under
this section.
(2) In acting under paragraph (1) of this subsection, the
Secretary shall consider the commercial availability on
reasonable terms of substantially equivalent launch property or
launch services 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 or reentry effort; and
(B) the Government would not incur if there were no
commercial launch 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) * * *
* * * * * * *
(C) launch 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.
(3) The Secretary shall ensure the establishment of uniform
guidelines for, and consistent implementation of, this section
by all Federal agencies.
* * * * * * *
(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] or reentry vehicle,
or the payload of either, for launch or reentry if the activity
was agreed to by the owner or manufacturer of the launch
vehicle, or reentry vehicle, or payload.
Sec. 70112. Liability insurance and financial responsibility
requirements
(a) General Requirements.--(1) When a launch or reentry
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.
* * * * * * *
(3) For the total claims related to one launch or reentry,
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)(i) or
(ii) 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 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 launch or reentry
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 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 or reentry services, and contractors and
subcontractors involved in launch services 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 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.
* * * * * * *
(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] 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.
* * * * * * *
(e) Launches 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 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 launch or reentry 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 or 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.
* * * * * * *
(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 or reentry 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 or reentry 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.
* * * * * * *
Sec. 70115. Enforcement and penalty
(a) * * *
(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, reentry site, production facility,
assembly site of a launch vehicle or reentry
vehicle, or site at which a payload is
integrated with a launch 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.
* * * * * * *
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 or reentry site, or to
reenter a reentry vehicle.
* * * * * * *
(d) Consultation.--The Secretary of Transportation is
encouraged to consult with a State to simplify and expedite the
approval of a space launch or reentry activity.
* * * * * * *
[(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.]
(f) Launch Not an Export; Reentry Not an Import.--A launch
vehicle, reentry vehicle, or payload that is launched or
reentered is not, because of the launch or reentry, an export
or import, respectively, for purposes of a law controlling
exports or imports.
(g) Nonapplication.--This chapter does not apply to--
(1) a launch, [operation of a launch vehicle or
launch site,] reentry, operation of a launch vehicle or
reentry vehicle, operation of a launch site or reentry
site, or other space activity the Government carries
out for the Government; or
(2) planning or policies related to the launch,
reentry, operation, or activity.
* * * * * * *
Sec. 70120. Regulations
(a) In General.--The Secretary of Transportation, within 9
months after the date of the enactment of this section, shall
issue regulations to carry out this chapter that include--
(1) guidelines for industry and State governments
to obtain sufficient insurance coverage for potential
damages to third parties;
(2) procedures for requesting and obtaining
licenses to launch a commercial launch vehicle;
(3) procedures for requesting and obtaining
operator licenses for launch;
(4) procedures for requesting and obtaining launch
site operator licenses; and
(5) procedures for the application of government
indemnification.
(b) Reentry.--The Secretary of Transportation, within 6
months after the date of the enactment of this section, shall
issue a notice of proposed rulemaking to carry out this chapter
that includes--
(1) procedures for requesting and obtaining
licenses to reenter a reentry vehicle;
(2) procedures for requesting and obtaining
operator licenses for reentry; and
(3) procedures for requesting and obtaining reentry
site operator licenses.
Sec. 70121. Report to Congress
The Secretary of Transportation shall submit to Congress an
annual report to accompany the President's budget request
that--
(1) describes all activities undertaken under this
chapter, including a description of the process for the
application for and approval of licenses under this
chapter and recommendations for legislation that may
further commercial launches and reentries; and
(2) reviews the performance of the regulatory
activities and the effectiveness of the Office of
Commercial Space Transportation.
----------
SECTION 504 OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
AUTHORIZATION ACT, FISCAL YEAR 1993
SEC. 504. LAUNCH VOUCHER DEMONSTRATION PROGRAM.
(a) Commercial Space Voucher Demonstration Program;
Effective Period.--The Administrator shall establish a
demonstration program to award vouchers for the payment of
commercial launch services and payload integration services for
the purpose of launching payloads funded by [the Office of
Commercial Programs within] the National Aeronautics and Space
Administration to become effective October 1, 1993. [Such
program shall not be effective after September 30, 1995.]
* * * * * * *
[(c) Assumption of Certain Responsibilities.--In carrying
out the demonstration program established under subsection (a),
the Administrator, in awarding vouchers, is limited to the
launch of payloads funded by the Office of Commercial Programs
within the National Aeronautics and Space Administration.]
[(d)] (c) Assistance.--The Administrator may provide
voucher award recipients with such assistance, including
contract formulation and technical support during the proposal
evaluation, as may be necessary, to ensure the purchase of cost
effective and reasonably reliable commercial launch services
and payload integration services.
[(e)] (d) Report.--The Administrator shall conduct an
ongoing review of the program established under this section,
and shall, not later than January 31, 1995, report to Congress
the results of such a review, together with recommendations for
further action relating to the program.
----------
LAND REMOTE SENSING POLICY ACT OF 1992
* * * * * * *
SEC. 2. FINDINGS.
The Congress finds and declares the following:
(1) * * *
* * * * * * *
[(5) Given the importance of the Landsat program to
the United States, urgent actions, including expedited
procurement procedures, are required to ensure data
continuity.
[(6) Full commercialization of the Landsat program
cannot be achieved within the foreseeable future, and
thus should not serve as the near-term goal of national
policy on land remote sensing; however,
commercialization of land remote sensing should remain
a long-term goal of United States policy.]
(5) Commercialization of land remote sensing is a
near-term goal, and should remain a long-term goal, of
United States policy.
[(7)] (6) Despite the success and importance of the
Landsat system, funding and organizational
uncertainties over the past several years have placed
its future in doubt and have jeopardized United States
leadership in land remote sensing.
[(8)] (7) Recognizing the importance of the Landsat
program in helping to meet national and commercial
objectives, the President approved, on February 11,
1992, a National Space Policy Directive which was
developed by the National Space Council and commits the
United States to ensuring the continuity of Landsat
coverage into the 21st century.
[(9)] (8) Because Landsat data are particularly
important for national security purposes and global
environmental change research, management
responsibilities for the program should be transferred
from the Department of Commerce to an integrated
program management involving the Department of Defense
and the National Aeronautics and Space Administration.
[(10)] (9) Regardless of management
responsibilities for the Landsat program, the Nation's
broad civilian, national security, commercial, and
foreign policy interests in remote sensing will best be
served by ensuring that Landsat remains an unclassified
program that operates according to the principles of
open skies and nondiscriminatory access.
[(11)] (10) Technological advances aimed at
reducing the size and weight of satellite systems hold
the potential for dramatic reductions in the cost, and
substantial improvements in the capabilities, of future
land remote sensing systems, but such technological
advances have not been demonstrated for land remote
sensing and therefore cannot be relied upon as the sole
means of achieving data continuity for the Landsat
program.
[(12)] (11) A technology demonstration program
involving advanced remote sensing technologies could
serve a vital role in [determining the design of a
follow-on spacecraft to Landsat 7, while also helping
to determine whether such a spacecraft should be funded
by the United States Government, by the private sector,
or by an international consortium] ensuring the
continuity of Landsat quality data.
[(13)] (12) To maximize the value of the Landsat
program to the American public, unenhanced Landsat 4
through 6 data should be made available, at a minimum,
to United States Government agencies, to global
environmental change researchers, and to other
researchers who are financially supported by the United
States Government, at the cost of fulfilling user
requests, and unenhanced Landsat 7 data should be made
available to all users at the cost of fulfilling user
requests.
[(14)] (13) To stimulate development of the
commercial market for unenhanced data and value-added
services, the United States Government should adopt a
data policy for Landsat 7 which allows competition
within the private sector for distribution of
unenhanced data and value-added services.
[(15)] (14) Development of the remote sensing
market and the provision of commercial value-added
services based on remote sensing data should remain
exclusively the function of the private sector.
[(16)] (15) It is in the best interest of the
United States to maintain a permanent, comprehensive
Government archive of global Landsat and other land
remote sensing data for long-term monitoring and study
of the changing global environment.
* * * * * * *
TITLE I--LANDSAT
SEC. 101. LANDSAT PROGRAM MANAGEMENT.
(a) * * *
(c) Responsibilities.--The Landsat Program Management shall
be responsible for--
(1) * * *
* * * * * * *
(6) oversight of Landsat contracts entered into
under sections 102 and 103; and
[(7) coordination of a technology demonstration
program, pursuant to section 303; and]
[(8)] (7) ensuring that copies of data acquired by
the Landsat system are provided to the National
Satellite Land Remote Sensing Data Archive.
* * * * * * *
(e) Landsat Advisory Process.--
(1) Establishment.--The Landsat Program Management
shall seek impartial advice and comments regarding the
status, effectiveness, and operation of the Landsat
system, using existing advisory committees and other
appropriate mechanisms. Such advice shall be sought
from individuals who represent--
(A) a broad range of perspectives on basic
and applied science and operational needs with
respect to land remote sensing data; and
(B) the full spectrum of users of Landsat
data, including representatives from United
States Government agencies, State and local
government agencies, academic institutions,
nonprofit organizations, value-added companies,
the agricultural, mineral extraction, and other
user industries, and the public[, and].
[(C) a broad diversity of age groups,
sexes, and races.]
* * * * * * *
TITLE II--LICENSING OF PRIVATE REMOTE SENSING SPACE SYSTEMS
SEC. 201. GENERAL LICENSING AUTHORITY.
(a) * * *
(b) Compliance With the Law, Regulations, International
Obligations, and National Security.--[No license shall be
granted by the Secretary unless the Secretary determines in
writing that the applicant will comply](1) The Secretary shall
grant a license if the Secretary determines that the activities
proposed in the application are consistent with the
requirements of this Act, any regulations issued pursuant to
this Act, and any applicable international obligations and
national security concerns of the United States.
(2) The Secretary, within 6 months after the date of the
enactment of the Commercial Space Act of 1997, shall publish in
the Federal Register a complete and specific list of all
information required to comprise a complete application for a
license under this title. An application shall be considered
complete when the applicant has provided all information
required by the list most recently published in the Federal
Register before the date the application was first submitted.
Unless the Secretary has, within 30 days after receipt of an
application, notified the applicant of information necessary to
complete an application, the Secretary may not deny the
application on the basis of the absence of any such
information.
(c) Deadline for Action on Application.--The Secretary
shall review any application and make a determination thereon
within 120 days of the receipt of such application. [If final
action has not occurred within such time, the Secretary shall
inform the applicant of any pending issues and of actions
required to resolve them.] If the Secretary has not granted the
license within such 120-day period, the Secretary shall inform
the applicant, within such period, of any pending issues and
actions required to be carried out by the applicant or the
Secretary in order to result in the granting of a license.
* * * * * * *
(e) Requirement To Provide Unenhanced Data.--(1) * * *
(2) The Secretary shall make a designation under paragraph
(1) after determining that--
(A) * * *
(B) it is in the interest of the United States to
require such data to be provided by the licensee
consistent with section 202(b)(3), after considering
the impact on the licensee [and the importance of
promoting widespread access to remote sensing data from
United States and foreign systems].
* * * * * * *
SEC. 202. CONDITIONS FOR OPERATION.
(a) * * *
(b) Licensing Requirements.--Any license issued pursuant to
this title shall specify that the licensee shall comply with
all of the requirements of this Act and shall--
(1) operate the system in such manner as to
preserve the national security of the United States and
to observe the international obligations of the United
States in accordance with section [506] 507;
(2) make available to the government of any country
(including the United States) unenhanced data collected
by the system concerning the territory under the
jurisdiction of such government [as soon as such data
are available and on reasonable terms and conditions]
on reasonable terms and conditions, including the
provision of such data in a timely manner;
* * * * * * *
(6) notify the Secretary of [any agreement] any
significant or substantial agreement relating to land
remote sensing the licensee intends to enter with a
foreign nation, entity, or consortium involving foreign
nations or entities.
The Secretary may not seek to enjoin a company from entering
into a foreign agreement the Secretary receives notification of
under paragraph (6) unless the Secretary has, within 30 days
after receipt of such notification, transmitted to the licensee
a statement that such agreement is inconsistent with the
national security or international obligations of the United
States, including an explanation of such inconsistency.
* * * * * * *
SEC. 203. ADMINISTRATIVE AUTHORITY OF THE SECRETARY.
(a) Functions.--In order to carry out the responsibilities
specified in this title, the Secretary may--
(1) grant, condition, or transfer licenses under
this Act;
(2) seek an order of injunction or similar judicial
determination from a United States District Court with
personal jurisdiction over the licensee to terminate,
modify, or suspend licenses [under this title and]
under this title and/or to terminate licensed
operations on an immediate basis, if the Secretary
determines that the licensee has substantially failed
to comply with any provisions of this Act, with any
terms, conditions, or restrictions of such license, or
with any international obligations or national security
concerns of the United States.
* * * * * * *
SEC. 204. REGULATORY AUTHORITY OF THE SECRETARY.
The Secretary [may] shall issue regulations to carry out
this title. Such regulations shall be promulgated only after
public notice and comment in accordance with the provisions of
section 553 of title 5, United States Code.
SEC. 205. AGENCY ACTIVITIES.
(a) * * *
* * * * * * *
(c) Agreements.--To the extent provided in advance by
appropriation Acts, any United States Government agency may
enter into agreements for such utilization if such agreements
are consistent with such agency's mission and statutory
authority, and [if such remote sensing space system is licensed
by the Secretary before commencing operation] if such private
remote sensing space system will be licensed by the Secretary
before commencing its commercial operation.
* * * * * * *
SEC. 206. NOTIFICATION.
(a) Limitations on Licensee.--Not later than 30 days after
a determination by the Secretary to require a licensee to limit
collection or distribution of data from a system licensed under
this title, the Secretary shall provide written notification to
Congress of such determination, including the reasons therefor,
the limitations imposed on the licensee, and the period during
which such limitations apply.
(b) Termination, Modification, or Suspension.--Not later
than 30 days after an action by the Secretary to seek an order
of injunction or other judicial determination pursuant to
section 202(b) or section 203(a)(2), the Secretary shall
provide written notification to Congress of such action and the
reasons therefor.
TITLE III--RESEARCH, DEVELOPMENT, AND DEMONSTRATION
SEC. 301. CONTINUED FEDERAL RESEARCH AND DEVELOPMENT.
(a) Roles of NASA and Department of Defense.--(1) The
Administrator and the Secretary of Defense are directed to
continue and to enhance programs of remote sensing research and
development.
(2) The Administrator is authorized and encouraged to--
(A) conduct experimental space remote sensing
programs (including applications demonstration programs
and basic research at universities);
(B) develop remote sensing technologies and
techniques, including those needed for monitoring the
Earth and its environment, that are not being
commercially developed; and
* * * * * * *
(d) Duplication of Commercial Sector Activities.--The
Federal Government shall not undertake activities under this
section which duplicate activities available from the United
States commercial sector, unless such activities would result
in significant cost savings to the Federal Government, or are
necessary for reasons of national security or international
obligations.
SEC. 302. AVAILABILITY OF FEDERALLY GATHERED UNENHANCED DATA.
[(a) General Rule.--]All unenhanced land remote sensing
data gathered and owned by the United States Government[,
including unenhanced data gathered under the technology
demonstration program carried out pursuant to section 303,]
that is not otherwise available from the commercial sector
shall be made available to users in a timely fashion.
[(b) Protection for Commercial Data Distributor.--The
President shall seek to ensure that unenhanced data gathered
under the technology demonstration program carried out pursuant
to section 303 shall, to the extent practicable, be made
available on terms that would not adversely effect the
commercial market for unenhanced data gathered by the Landsat 6
spacecraft.
[SEC. 303. TECHNOLOGY DEMONSTRATION PROGRAM.
[(a) Establishment.--As a fundamental component of a
national land remote sensing strategy, the President shall
establish, through appropriate United States Government
agencies, a technology demonstration program. The goals of such
programs shall be to--
[(1) seek to launch advanced land remote sensing
system components within 5 years after the date of the
enactment of this Act.
[(2) demonstrate within such 5-year period advanced
sensor capabilities suitable for use in the anticipated
land remote sensing program; and
[(3) demonstrate within such 5-year period an
advanced land remote sensing system design that could
be less expensive to procure and operate than the
Landsat system projected to be in operation through the
year 2000, and that therefore holds greater potential
for private sector investment and control.
[(b) Execution of Program.--In executing the technology
demonstration program, the President shall seek to apply
technologies associated with United States National Technical
Means of intelligence gathering, to the extent that such
technologies are appropriate for the technology demonstration
and can be declassified for such purposes without causing
adverse harm to United States national security interests.
[(c) Broad Application.--To the greatest extent
practicable, the technology demonstration program established
under subsection (a) shall be designed to be responsive to the
broad civilian, national security, commercial, and foreign
policy needs of the United States.
[(d) Private Sector Funding.--The technology demonstration
program under this section may be carried out in part with
private sector funding.
[(e) Landsat Program Management Coordination.--The Landsat
Program Management shall have a coordinating role in the
technology demonstration program carried out under this
section.
[(f) Report to Congress.--The President shall assess the
progress of the technology demonstration program under this
section and, within 2 years after the date of enactment of this
Act, submit a report to the Congress on such progress.]
* * * * * * *
TITLE IV--ASSESSING OPTIONS FOR SUCCESSOR LAND REMOTE SENSING SYSTEM
SEC. 401. ASSESSING OPTIONS FOR SUCCESSOR LAND REMOTE SENSING SYSTEM.
(a) * * *
(b) Goals.--In carrying out subsection (a), the Landsat
Program Management shall consider the ability of each of the
options to--
(1) * * *
* * * * * * *
(3) incorporate system enhancements[, including any
such enhancements developed under the technology
demonstration program under section 303,] which may
potentially yield a system that is less expensive to
build and operate, and more responsive to data users,
than is the Landsat system projected to be in operation
through the year 2000.
* * * * * * *
TITLE V--GENERAL PROVISIONS
SEC. 501. NONDISCRIMINATORY DATA AVAILABILITY.
(a) General Rule.--Except as provided in subsection (b) of
this section, any unenhanced data generated by the Landsat
system or any other land remote sensing system funded and owned
by the United States Government shall be made available to all
users without preference, bias, or any other special
arrangement (except on the basis of national security concerns
pursuant to section [506] 507) regarding delivery, format,
pricing, or technical considerations which would favor one
customer or class of customers over another.
* * * * * * *
SEC. 502. ARCHIVING OF DATA.
(a) * * *
* * * * * * *
(c) Determination of Content of Basic Data Set.--In
determining the initial content of, or in upgrading, the basic
data set, the Secretary of Interior shall--
(1) * * *
* * * * * * *
(7) ensure that the content of the archive is
developed in accordance with section [506] 507.
* * * * * * *
SEC. 507. CONSULTATION.
[(a) Consultation With Secretary of Defense.--The Secretary
and the Landsat Program Management shall consult with the
Secretary of Defense on all matters under this Act affecting
national security. The Secretary of Defense shall be
responsible for determining those conditions, consistent with
this Act, necessary to meet national security concerns of the
United States and for notifying the Secretary and the Landsat
Program Management promptly of such conditions.
[(b) Consultation With Secretary of State.--(1) The
Secretary and the Landsat Program Management shall consult with
the Secretary of State on all matters under this Act affecting
international obligations. The Secretary of State shall be
responsible for determining those conditions, consistent with
this Act, necessary to meet international obligations and
policies of the United States and for notifying promptly the
Secretary and the Landsat Program Management of such
conditions.
[(2) Appropriate United States Government agencies are
authorized and encouraged to provide remote sensing data,
technology, and training to developing nations as a component
of programs of international aid.]
(a) Responsibility of the Secretary of Defense.--The
Secretary shall consult with the Secretary of Defense on all
matters under title II affecting national security. The
Secretary of Defense shall be responsible for determining those
conditions, consistent with this Act, necessary to meet
national security concerns of the United States, and for
notifying the Secretary promptly of such conditions. Not later
than 180 days after the date of the enactment of the Commercial
Space Act of 1997, the Secretary of Defense shall publish in
Commerce Business Daily, for the purpose of soliciting
comments, notice of all national security concerns that pertain
to the licensing of private remote sensing space systems. Not
later than 60 days after receiving a request from the
Secretary, the Secretary of Defense shall notify the Secretary
and the licensee of, and describe in detail, any specific
national security concerns of the United States that the
Secretary of Defense determines are an appropriate reason for
delaying, modifying, or rejecting a license application. The
Secretary of Defense shall concurrently recommend to the
Secretary any conditions for a license issued under title II,
consistent with this Act, that the Secretary of Defense
considers necessary to secure the national security concerns of
the United States. If no such notification has been received by
the Secretary within such 60-day period, the Secretary shall
deem activities proposed in the license application to be
consistent with the protection of the national security of the
United States.
(b) Responsibility of the Secretary of State.--(1) The
Secretary shall consult with the Secretary of State on all
matters under title II affecting international obligations of
the United States. The Secretary of State shall be responsible
for determining those conditions, consistent with this Act,
necessary to meet international obligations of the United
States and for notifying the Secretary promptly of such
conditions. Not later than 180 days after the date of the
enactment of the Commercial Space Act of 1997, the Secretary of
State shall publish in Commerce Business Daily, for the purpose
of soliciting comments, notice of all international obligations
of the United States that pertain to the licensing of private
remote sensing space systems. Not later than 60 days after
receiving a request from the Secretary, the Secretary of State
shall notify the Secretary and the licensee of, and describe in
detail, any specific international obligations of the United
States that the Secretary of State determines are an
appropriate reason for delaying, modifying, or rejecting a
license application. The Secretary of State shall concurrently
recommend to the Secretary any conditions for a license issued
under title II, consistent with this Act, that the Secretary of
State considers necessary to secure the international
obligations of the United States. If no such notification has
been received by the Secretary within such 60-day period, the
Secretary shall deem activities proposed in the license
application to be consistent with the international obligations
of the United States.
(2) Appropriate United States Government agencies are
authorized and encouraged to provide to developing nations, as
a component of international aid, resources for purchasing
remote sensing data, training, and analysis from commercial
providers.
* * * * * * *
(d) Reimbursements.--If, as a result of technical
modifications imposed on a licensee under title II on the basis
of national security concerns, the Secretary, in consultation
with the Secretary of Defense or with other Federal agencies,
determines that additional costs will be incurred by the
licensee, or that past development costs (including the cost of
capital) will not be recovered by the licensee, the [Secretary
may require] Secretary shall, where appropriate, require the
agency or agencies requesting such technical modifications to
reimburse the licensee for such additional or development
costs, but not for anticipated profits. Reimbursements may
cover costs associated with required changes in system
performance, but not costs ordinarily associated with doing
business abroad.
* * * * * * *
----------
LAUNCH SERVICES PURCHASE ACT OF 1990
TITLE II--LAUNCH SERVICES PURCHASE
SEC. 201. SHORT TITLE.
This title may be cited as the ``Launch Services Purchase
Act of 1990''.
[SEC. 202. FINDINGS.
[The Congress finds that--
[(1) the United States commercial launch industry
is technically capable of providing reliable and cost
efficient access to space and is an essential component
of national efforts to assure access to space for
Government and commercial users;
[(2) the Federal Government should encourage,
facilitate, and promote the United States commercial
launch industry, including the development and
enhancement of commercial launch facilities, in order
to ensure United States economic preeminence in space;
[(3) the interests of the United States will be
served if the commercial launch industry is competitive
in the international marketplace;
[(4) commercial vehicles are effective means to
challenge foreign competition;
[(5) the use by the Federal Government of
performance specifically in lieu of detailed
specifications relating to vehicle design,
construction, and operation will facilitate the
efficient operation of the United States commercial
launch industry;
[(6) the procurement of commercial launch services
in a commercially reasonable manner permits a reduced
level of Federal Government regulation and oversight
and economies of scale which may result in significant
cost savings to the commercial launch industry and to
the United States.
[(7) it is the general policy of the Federal
Government to purchase needed goods and services,
including launch services, from the private sector to
the fullest extent feasible; and
[(8) predictable access to National Aeronautics and
Space Administration launch markets would encourage
continuing United States private sector investment in
space and related activities.]
SEC. 203. DEFINITIONS.
For the purposes of this title--
[(1) the term ``commercial provider'' means any
person providing launch services, but does not include
the Federal Government;
[(2) the term ``launch services'' means activities
involved in the preparation of a launch vehicle and its
payload for space transport and the conduct of
transporting a payload;]
[(3)] (1) the term ``launch vehicle'' means any
vehicle constructed for the purpose of operating in, or
placing a payload in, outer space; and
[(4)] (2) the term ``payload'' means an object
which a person undertakes to place in outer space by
means of a launch vehicle, and includes subcomponents
of the launch vehicle specifically designed or adapted
for that object.
[SEC. 204. REQUIREMENT TO PROCURE COMMERCIAL LAUNCH SERVICES.
[(a) In General.--Except as otherwise provided in this
section, the National Aeronautics and Space Administration
shall purchase launch services for its primary payloads from
commercial providers whenever such services are required in the
course of its activities.
[(b) Exceptions.--The National Aeronautics and Space
Administration shall not be required to purchase launch
services as provided in subsection (a) if, on a case by case
basis the Administrator of the National Aeronautics and Space
Administration determines that--
[(1) the payload requires the unique capabilities
of the space shuttle;
[(2) cost effective commercial launch services to
meet specific mission requirements are not reasonably
available and would not be available when required;
[(3) the use of commercial launch services poses an
unacceptable risk of loss of a unique scientific
opportunity; or
[(4) the payload serves national security or
foreign policy purposes.
Upon any such determination, the Administrator shall, within 30
days, notify in writing the Committee on Science, Space, and
Technology of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate of the
determination and its rationale.
[(c) National Aeronautics and Space Administration Launch
Vehicles.--Launch vehicles shall be acquired or owned by the
National Aeronautics and Space Administration only--
[(1) as required under circumstances described in
subsection (b); or
[(2) by the National Aeronautics and Space
Administration for conducting research and development
on, and testing of, launch technology.
[(d) Phase-In Period.--Subsections (a) and (c) shall not
apply to launch services and launch vehicles purchased by the
National Aeronautics and Space Administration before the date
of enactment of this Act.
[(e) Historical Purposes.--This title shall not be
interpreted to prohibit the National Aeronautics and Space
Administration from acquiring, owning, or maintaining launch
vehicles solely for historical display purposes.
[SEC. 205. PURCHASE OF LAUNCH SERVICES.
[(a) Full and Open Competition.--(1) Contracts to provide
launch services to the National Aeronautics and Space
Administration under section 204 shall be awarded on the basis
of full, fair, and open competition, consistent with section
2304 of title 10, United States Code, and section 311 of the
National Aeronautics and Space Act of 1958.
[(2) The National Aeronautics and Space Administration
shall limit its requirements for submission of cost or pricing
data in support of a bid or proposal to that data which is
reasonably required to protect the interests of the United
States.
[(b) Specification Systems.--Reasonable performance
specifications, not detailed Government design or construction
specifications, shall be used to the maximum extent feasible to
define requirements for a commercial provider bidding to
provide launch services. This subsection shall not preclude the
National Aeronautics and Space Administration from requiring
compliance with applicable safety standards.]
SEC. 206. OTHER ACTIVITIES OF THE NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION.
[(a) Commercial Payloads on the Space Shuttle.--]
Commercial payloads may not be accepted for launch as primary
payloads on the space shuttle unless the Administrator of the
National Aeronautics and Space Administration determines that--
(1) the payload requires the unique capabilities of
the space shuttle; or
(2) launching of the payload on the space shuttle
is important for either national security or foreign
policy purposes.
[(b) Report.--By March 15, 1991, the Administrator, in
consultation with the Office of Federal Procurement Policy,
shall submit to the Committee on Science, Space, and Technology
of the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report outlining
the minimal requirements for documentation and other
administrative data needed to procure launch services in a
commercially reasonable manner, including--
[(1) the need for data to integrate a payload with
a launch vehicle;
[(2) the need for data to carry out mission-
specific modifications to the launch vehicle;
[(3) the need for notification to the National
Aeronautics and Space Administration of changes,
delays, or difficulties in the construction or
preparation of a launch vehicle that may affect the
delivery of its payload to its destination at the time
and under the conditions provided for under the
contract between the United States and its contractors;
[(4) the need for data to protect public health and
safety; and
[(5) the need for cost or pricing data for the
fulfillment of a contract.]
XVII. Committee Recommendations
On June 18, 1997, a quorum being present, the Committee
favorably reported the Commercial Space Act, as amended, by a
voice vote, and recommends its enactment.
XVIII. Proceedings of Subcommittee Markup
SUBCOMMITTEE MARKUP OF H.R. 1702--THE COMMERCIAL SPACE ACT OF 1997
----------
THURSDAY, JUNE 12, 1997
U.S. House of Representatives,
Committee on Science,
Subcommittee on Space and Aeronautics,
Washington, DC.
The Subcommittee convened at 10:08 a.m. in room 2318 of the
Rayburn House Office Building, Hon. Dana Rohrabacher, Chairman
of the Subcommittee, presiding.
Members present: Representatives Rohrabacher, Cramer,
Bartlett, Davis, Sensenbrenner, Hastings, Weldon (FL), Luther,
Capps, Cook, Calvert, Salmon, Brady, Nethercutt, Jr., Hall,
Luther, Lofgren, Lampson and Gordon.
Staff present: Bill Buckey, Eric Sterner and Rich Stombres.
Chairman Rohrabacher. Good morning. Pursuant to notice,
the Subcommittee on Space and Aeronautics is meeting today to
consider H.R. 1702, the Commercial Space Act of 1997.
Because the House is in session, and we may have to vote, I
ask for unanimous consent for the authority to recess at any
time. Thank you very much.
I am pleased today to bring before the Subcommittee for
legislative markup bipartisan legislation to promote U.S.
leadership in the commercial development of the space frontier.
H.R. 1702 is a measured and considered bill based on
legislation passed by the House last year under suspension. I
congratulate Chairman Sensenbrenner and Ranking Member Brown
for bringing it forward so quickly in this session.
To summarize the Space Commercialization Act of 1997, it
does three things:
First, it promotes new commercial space opportunities
relating to the International Space Station, reasonable space
vehicles, space-based navigation and space science data
collection.
Second, it streamlines the regulation of the emerging
commercial remote sensing industry which, as we learned in our
hearings, is a potentially multi-billion dollar export industry
for America.
Finally, it requires the Federal Government to purchase
commercial space transportation services wherever possible
instead of building and operating launch vehicles itself.
Today we begin to move this bill forward toward what I hope
will be a Presidential signature by the end of this calendar
year. That is an aggressive schedule, but I believe if we work
closely with our Senate colleagues and the Administration we
can achieve it.
Now I would recognize Mr. Cramer.
Chairman Sensenbrenner, would you like to say some words
first?
Chairman Sensenbrenner. Mr. Chairman, you have done a good
job and I'm watching.
Chairman Rohrabacher. Thank you very much, Mr. Chairman.
Mr. Cramer.
Mr. Cramer. Thank you, Mr. Chairman. I'm glad we can move
on with this markup. I thought after yesterday we might not get
this opportunity. This is a good bill, H.R. 1702, the
Commercial Space Act of 1997. I've appreciated the bipartisan
approach to this bill in the hearings that we've been able to
have. I thought they were very, very good hearings.
I've co-sponsored H.R. 1702 which continues Congress' long-
standing tradition of promoting the development of a healthy
and robust commercial space sector. The bipartisan tradition
has been reflected in the passage of a series of important
legislative initiatives in the past, including the Land Remote
Sensing Commercialization Act of 1984, the Land Remote Sensing
Policy Act of 1992, the Commercial Space Launch Act, the
Commercial Space Launch Act Amendments of 1988 and the Launch
Services Purchase Act of 1990.
I think those Acts have played an important role in
fostering the growth of the commercial remote sensing and
commercial launch service industries and have certainly
benefited the Nation's economy as a whole.
I think we all agree that space is not just a frontier for
research and exploration, it is also a frontier for commercial
activity and we need only look at the explosive growth of the
satellite communications industry of the past 3 decades to
realize the truth of that statement. I believe that we may be
on the verge of a similar explosion of growth in the commercial
remote sensing industry as well as commercial applications of
the GPS System.
H.R. 1702 is not a perfect bill. Indeed, we will offer
several amendments, and I think my colleague, Mr. Hastings from
Florida will offer an amendment that will improve the bill.
Those amendments are intended to ensure that the Nation's
legitimate national security concerns and international
obligations are protected as we work to promote the growth of
commercial remote sensing. So I look forward to this markup,
Mr. Chairman.
[The prepared statement of Mr. Cramer follows:]
OPENING STATEMENT
by
HON. ROBERT E. ``BUD'' CRAMER, JR.
June 11, 1997
Good afternoon. As the Chairman has indicated, we are here this
afternoon to mark up H.R. 1702, the Commercial Space Act of 1997. H.R.
1702, which I have cosponsored, continues Congress's long-standing
tradition of promoting the development of a healthy and robust
commercial space sector.
This bipartisan tradition has been reflected in the passage of a
series of important legislative initiatives, including the
--``Land Remote Sensing Commercialization Act of 1984,''
--``Land Remote Sensing Policy Act of 1992,''
--``Commercial Space Launch Act,''
--``Commercial Space Launch Act Amendments of 1988,'' and the
--``Launch Services Purchase Act of 1990.''
These Acts have played an important role in fostering the growth of
the commercial remote sensing and commercial launch services
industries, and have certainly benefited the Nation's economy as a
whole.
I think that we can all agree that space is not just a frontier for
research and exploration--it is also a frontier for commercial
activity. We need only look at the explosive growth of the satellite
communications industry over the past 3 decades to realize the truth of
that statement. I believe that we may be on the verge of a similar
explosion of growth in the commercial remote sensing industry, as well
as in commercial applications of the Global Positioning System.
It is clear from all of these examples that the Federal
Government's investments in space technology and systems have provided
the private sector with impressive capabilities that can be exploited
to benefit both our citizens and the economy as a whole. It is now the
private sector's challenge to make commercial space activities earn
profits--government cannot and should not guarantee success.
However, the Federal Government can provide a stable and supportive
policy environment for commercial space activities. That has been the
goal of previous commercial space legislation, and I believe that is
also the goal of H.R. 1702.
Of course, H.R. 1702 is not a perfect bill. Indeed, Chairman
Rohrabacher and I will offer several amendments today that we believe
will improve the bill. They are intended to ensure that the Nation's
legitimate national security concerns and international obligations are
protected as we work to promote the growth of commercial remote
sensing. And we intend to work with the Administration as it considers
the bill to ensure that H.R. 1702 is a constructive legislative step
forward in our mutual effort to ensure a vital and healthy commercial
space sector.
Mr. Chairman, I look forward to a productive markup.
Thank you.
Chairman Rohrabacher. Thank you very much, Mr. Cramer.
The Chair asks other members if they would be willing to
submit their opening statements for the record so we can
proceed directly with amendments.
Without objection, all other statements will be included in
the record at this point.
I ask for unanimous consent that H.R. 1702 be considered as
read and open to amendment at any point.
Without objection, so ordered.
[A section-by-section analysis of H.R. 1702 and the text of
the bill follow:]
Chairman Rohrabacher. I further ask the members to proceed
with the amendments in the order that they are printed on the
roster.
The first amendment on the roster is the bipartisan
Managers' Amendment offered by myself and Mr. Cramer. The Clerk
will report the amendment.
Mr. Stombres. Amendment offered by Mr. Rohrabacher and Mr.
Cramer. Page 25, line 18----
Chairman Rohrabacher. Without objection, the amendment will
be considered as read.
Chairman Rohrabacher. I recognize myself for 5 minutes.
This amendment was drafted by the Subcommittee's bipartisan
staff after discussion with the White House and various
Executive Branch departments and agencies. It reflects some of
their input and response to some of their requests for changes.
We are making these changes to demonstrate our willingness to
work in good faith with the Executive Branch in fashioning and
passing this legislation.
Now it will be their turn to demonstrate good faith and
work with us to ensure that the additional changes that the
State Department and the Defense Department are asking to make
to the bill are both necessary and consistent with the Congress
and the White House shared commitments to see commercial space
emerge as a new source of jobs and economic growth for this
country.
As these discussions with the White House and the Executive
Branch continue, we may need to amend the bill again during the
Full Committee markup. In order to save time at this point I
would like to place in the record a brief description of the
amendment which has been distributed to the members of the
Subcommittee.
Without objection, that is put in the record.
[The description referred to follows:]
Mr. Rohrabacher's Statement for the Record on the Managers' Amendment
at Space & Aeronautics Subcommittee Markup of H.R. 1702
This amendment makes four minor changes in the bill. First, we're
adding a new finding regarding remote sensing. This finding reaffirms
that Congress expects the national security and the international
obligations of the United States to be protected as the commercial
remote sensing industry emerges.
Second, we're making a technical change to the government's
authority to seek to modify or terminate a commercial remote sensing
license. Current law may be interpreted to require the Secretary of
Commerce to seek to both modify a license and terminate operations at
the same time, which makes no sense. The original bill changed this so
that the Secretary can do one or the other, and does not have to do
both. The amendment ensures that the Secretary can do both, if he
chooses.
Third, current law allows the Department of Commerce to impose
administrative penalties of $10,000 per day on companies it believes
are failing to comply with the terms of their license.
The bill removes this authority to unilaterally impose such
penalties by requiring the Department of Commerce to go to court and
prove noncompliance before penalties can be imposed.
Both the State and Commerce Departments objected to this change. We
have agreed to amend the bill and preserve the Commerce Department's
ability to impose administrative fees.
Finally, on page 32, we're adding an exception to the bill's
prohibition on government duplication of private sector activities.
Under the bill, the government may only duplicate private sector
activities if doing so would result in significant cost savings. Under
the amendment, the government will also be able to duplicate private
sector activity if it is necessary for reasons of national security or
international obligations.
Chairman Rohrabacher. I now recognize Mr. Cramer to speak
on the amendment.
Mr. Cramer. As I said, I would like to join the Chairman in
speaking in support of our proposed amendments. These are a
relatively modest set of amendments. They clarify, as I said,
that H.R. 1702 is intended to promote a healthy and vigorous
remote sensing industry while at the same time making sure that
national security concerns and international obligations are
protected.
As Chairman Rohrabacher has indicated, we are continuing to
discuss a number of the provisions of H.R. 1702 with the
Administration. The discussions have been constructive and I
believe that they will ultimately result in a bill that will be
supported by both the Administration and the Congress. These
amendments are a first step and I urge my colleagues to support
them.
Chairman Rohrabacher. Is there any further discussion?
Mr. Sensenbrenner?
Chairman Sensenbrenner. No.
Chairman Rohrabacher. If there is no further discussion
then this vote will occur on the amendment.
All in favor of the Managers' Amendment say aye.
[Chorus of ayes]
Chairman Rohrabacher. All opposed?
[No response]
The ayes have it and the amendment is agreed to.
Mr. Hastings. Mr. Chairman, I have an amendment at the
desk.
Chairman Rohrabacher. Judge Hastings, your Honor, you have
an amendment at the desk. Are you ready to proceed with your
amendment?
Mr. Hastings. I am, sir.
Chairman Rohrabacher. You may proceed.
The Clerk will report the amendment.
Mr. Stombres. Amendment offered by Mr. Hastings.
Mr. Hastings. I ask unanimous consent that the amendment be
accepted as read, Mr. Chairman.
Chairman Rohrabacher. Without objection the amendment will
be considered as read and the gentleman is recognized for 5
minutes to offer his amendment.
[The prepared statement of Mr. Hastings and the text of the
amendment follow:]
Statement of Congressman Alcee L. Hastings in support of the Hastings
Amendment to H.R. 1702
June 11, 1997
Mr. Chairman,
I offer this amendment in conjunction with my colleague, Mr. Wexler
of Florida, to support NASA's 11 Commercial Space Centers. The Centers
involve a collaboration among academia, industry and government.
Managed by NASA's Office of Advanced Concepts and Technology, the
Centers are co-located at and operated by a number of universities and
research institutes across the country, including Alabama, Wisconsin,
Texas and Florida. Each dollar from NASA distributed to the centers is
leveraged by industry and academia, generating two to three times the
initial investment.
Until 1996, all the Commercial Space Centers were managed under one
roof at NASA headquarters. But last year, six of the Centers were
detached and now are managed by field centers (Stennis Space Center and
Lewis Research Center). This includes the Space Communications
Technology Center in Boca Raton, Florida. When NASA reorganized the six
Centers, it did not continue to provide funding from its headquarter's
budget. Consequently, the six Centers had to compete for resources with
the field centers. And, with their budgets in decline, many of the
Centers were getting the short end of the stick.
The Centers should be funded directly from NASA headquarters, and
not be farmed out to field offices, where they are subject to
cannibalism. Let's fix this problem, Mr. Chairman. The amendment
offered would do just that by allowing NASA headquarters to control the
funding of the Centers.
Mr. Hastings. I thank the Chair, and more specifically
thank you and the Ranking Member and the Chairman of the Full
Committee, Mr. Sensenbrenner for the opportunity to come
forward with this amendment, and to compliment the Full
Chairman and you, Mr. Chairman, for the bipartisan spirit that
has been demonstrated throughout this Congressional session.
I offer this amendment in conjunction with my colleague,
Robert Wexler of Florida to support NASA's 11 commercial space
centers. The centers involve a collaboration among academia,
industry and government managed by NASA's Office of Advanced
Concepts and Technology. The centers are co-located and
operated by a number of universities and research institutes
across the country including Alabama, which gets our Ranking
Member's juices flowing, Wisconsin, Texas, and I think
everybody that ever was on a committee is on this one from
Texas, and Florida. Each dollar from NASA distributed to the
centers is leveraged by industry and academia generating two to
three times the initial investment.
As we all know, Mr. Chairman, until 1996 all the commercial
space centers were managed under one roof at NASA Headquarters,
but last year six of the centers were detached and now are
managed by field centers, Stennis Space Center and Lewis
Research Center. This includes the Space Communications
Technology Center in Boca Raton, Florida, which is situated in
the district that I'm privileged to serve. When NASA recognized
the six centers it did not continue to provide funding from its
Headquarters budget. Consequently the six centers had to
compete for resources with the field centers, and with their
budgets in decline many of the centers were getting the short
end of the stick.
The centers, in my view, Mr. Chairman, should be funded
directly from NASA Headquarters and not be farmed out to field
offices where they are subject to cannibalism. Let's fix this
problem. I believe this amendment moves us in that direction,
and I ask my colleagues to support it and allow NASA
Headquarters to control the funding of the centers.
With that I yield back any time I may have, Mr. Chairman.
Chairman Rohrabacher. Thank you very much, Mr. Hastings.
Mr. Weldon.
Mr. Weldon of Florida. Thank you, Mr. Chairman. I want to
express my support for Mr. Hastings' amendment. I worked with
Mr. Wexler on this problem with funding the commercial space
center at Florida Atlantic University and it reflects an
overall problem that NASA has with managing commercial space
efforts.
This amendment would simply require NASA to manage and fund
commercial space efforts from Headquarters rather than leaving
it up to individual field centers which have their own unique
regional budget and political struggles. When a field center is
responsible for a commercial space efforts hundreds of miles
away there is just not the same incentive to ensure its
success.
I commend my colleague from Florida for this forward-
thinking amendment and I ask the Committee to support it.
Thank you, Mr. Chairman.
Chairman Rohrabacher. Thank you.
Mr. Cramer.
Mr. Cramer. Mr. Chairman, I would like to speak in support
of Mr. Hastings' amendment. I could say a lot of things about
the centers for commercial development, all positive, but Mr.
Hastings has raised some concerns about the way that program
has been administered and has proposed what amounts to a very
reasonable solution for those problems, and it's important that
we do solve those problems.
Thus, I will support the amendment and will work with Mr.
Hastings, the Chairman and NASA to ensure that we maintain a
healthy and efficient commercial program.
Chairman Rohrabacher. Thank you very much.
Does anyone else want to speak?
[No response.]
Seeing none, the Chairman accepts this amendment by the
gentleman from Florida and thanks him for his strong support of
NASA's commercial center program.
Mr. Hastings. Thank you, Mr. Chairman.
Chairman Rohrabacher. I think your amendment will really
make a great contribution. This is the type of fine-tuning that
we need to make sure the system is working and the taxpayers'
dollars are being spent wisely.
I believe that the amendment will preserve a consistent and
fair process at NASA Headquarters for awarding and renewal of
funding for commercial space centers based on peer review of
merit and performance. It is not the Congress' job to pick
centers to be funded or cut, but it is our job to ensure that
the centers are judged on their merits using a fair and
consistent set of standards. It appears for now that
Headquarters needs to determine and apply those standards so
that commercial space centers don't get lost in the process of
decentralization.
The vote now occurs on the amendment by Mr. Hastings.
All in favor say aye.
[Chorus of ayes]
Chairman Rohrabacher. Opposed?
[No response]
The ayes have it and the amendment is agreed to.
Are there any other amendments?
[No response]
There are none.
If there are no further amendments the question is on H.R.
1702 as amended.
All those in favor will say aye.
[Chorus of ayes]
All opposed say nay.
[No response]
In the opinion of the Chair the ayes have it.
The Chair recognizes the gentleman from Alabama for a
motion.
Mr. Cramer. Mr. Chairman, I move that the Subcommittee
report the bill, H.R. 1702, the Commercial Space Act of 1997 as
amended.
Furthermore, I move to instruct the staff to prepare the
Subcommittee report, to make technical and conforming
amendments and that the Chairman take all necessary steps to
bring the bill before the Full Committee for consideration.
Chairman Rohrabacher. The Subcommittee has heard the
motion.
Those in favor will say aye.
[Chorus of ayes]
Chairman Rohrabacher. Those opposed will say no.
[No response]
The motion has been agreed to and the bill is reported to
the Full Committee.
The Chair would like to thank all members for their
participation today. The Full Committee markup will be held
next Wednesday on this legislation.
Let me note before we break that this piece of legislation
is something that exemplifies the kind of cooperation we can
have, and this Chairman is open to any ideas that you have for
legislation. We passed a 2-year budget authorization and that
gives us time to do some oversight and gives us time to put
together some legislation like Judge Hastings has done here
that will help fine-tune the system and make it a bit better.
So please feel free to contact the Ranking Member or myself and
we'll try to accommodate you. If there is a disagreement we'll
have an honest disagreement, but you'll get your hearing and
your legislative ideas will be considered by the this
Subcommittee.
So thank you all very much.
Without objection the Subcommittee is now adjourned.
[The Subcommittee adjourned at 10:24 a.m., subject to the
call of the Chair.]
IX. Proceedings of Full Committee Markup
FULL COMMITTEE MARKUP OF H.R. 1702--THE COMMERCIAL SPACE ACT OF 1997
----------
WEDNESDAY, JUNE 18, 1997
U.S. House of Representatives,
Committee on Science,
Washington, DC.
The Committee convened at 1:12 p.m. in room 2318 of the
Rayburn House Office Building, Hon. F. James Sensenbrenner,
Jr., Chairman of the Committee, presiding.
Members present: Chairman Sensenbrenner and Representatives
Brown, Hall, Cramer, Rohrabacher, Weldon (FL), Luther, Capps,
Bartlett, Calvert, Weldon (PA), Boehlert, Salmon, Brady,
Nethercutt, Jr., Hooley, Tauscher, Lampson, Stabenow, Jackson-
Lee, Doyle, Lofgren, Rivers, Johnson, McHale, Roemer, Gordon,
Morella, Ehlers, Gutknecht, Gordon, Hooley, and Etheridge.
Staff present: Bill Buckey, Eric Sterner and Patricia
Schwartz.
Chairman Sensenbrenner. The Committee will be in order.
The Chair notes the presence of a working quorum. Pursuant to
notice, the members of the Committee on Science will address
the following issues: the Democratic Subcommittee assignments;
and consideration of H.R. 1702, the Commercial Space Act of
1997.
Before we proceed on the commercial space bill, the Chair
recognizes the gentleman from California, Mr. Brown, for a
motion regarding Subcommittee assignments.
Mr. Brown of California. Thank you very much, Mr. Chairman.
As the members may know, Mr. Doggett has left the Committee on
our side for greener pastures leaving two Subcommittee
vacancies. I'm very pleased that Ellen Tauscher has been
appointed to the Committee further swelling the ranks of the
California members. Ellen is from the 10th District of
California which includes the Livermore National Laboratory.
She will be joining the Technology Subcommittee, and Mr.
Hastings will be filling the vacancy on the Energy and
Environment Subcommittee if my motion to appoint them to those
two Committees is approved.
Mr. Chairman, by direction of the Democratic Caucus of the
Committee on Science, I move the appointment of Hon. Alcee
Hastings to the Subcommittee on Energy and Environment, and the
appointment of Hon. Ellen Tauscher to the Subcommittee on
Technology.
Chairman Sensenbrenner. Without objection, the previous
question is ordered, and the motion of the gentleman from
California is agreed to.
Next on the agenda is consideration of H.R. 1702, the
Commercial Space Act of 1997, which the Clerk will report by
title.
Ms. Schwartz. H.R. 1702 as reported by the House
Subcommittee on Space. Short title, this Act may be cited as
the Commercial Space Act of 1997.
Chairman Sensenbrenner. Without objection, the first
reading of the bill is dispensed with, and the Chair recognizes
himself for 5 minutes for an opening statement.
Normally when we talk about legislation at a markup the
Chair summarizes the elements of the bill and expresses his
fervent wish that the President will sign it at some future
date. While I won't disappoint you in this area I'm going to
focus instead on politics because that's the hard part. Let's
begin at the top since the national discussion of politics
often begins with the White House.
Since he has come to office the President has released
several policies to promote commercial space development, space
transportation, remote sensing and space-based navigation.
These are pretty good policies and could help ensure American
companies lead in the commercialization of space and that the
jobs and benefits of space commercialization come to the United
States and don't go overseas.
In Congress we generally support the President's policies.
Last year we passed H.S. 3936, the Space Commercialization
Promotion Act of 1996 that codifies some aspects of the
President's policies in law. We had representatives from the
White House and the Executive Branch testify before the Space
and Aeronautics Subcommittee. They asked for some modest
changes to the bill which we made before we passed it. There
was one exception regarding lifting post-employment
restrictions on NASA's Space Shuttle workforce. We wanted to
lift them and the White House didn't. We resolved the White
House's problem in this year's bill.
We reintroduced the bill with a few modest changes as H.R.
1702, the Commercial Space Act of 1997. We have five original
bipartisan co-sponsors, and I'm pleased to report that seven
Members from both sides of the aisle have joined us as co-
sponsors since the Subcommittee markup. I hope a few more
Members will get on board before we file the legislative
report.
So where do the politics come in if we're all in agreement?
Politics come in when you have to manage an interagency process
and coordinate a flurry of paper from departments and agencies
worried about the effect that the bill will have on their
prerogatives. We understand that departments play different
roles in moving our commercial space interests forward. So the
Committee is trying to work with the Executive Branch to
address these concerns that appear to be substantive and to
clarify issues that may lead to different interpretations of
intent.
We made a few changes to the bill in last week's
Subcommittee markup as a demonstration of our commitment to
working with the Administration. For example, we removed the
bill's requirement that the Secretary of Commerce go to court
before imposing penalties on licensed remote sensing companies.
Both the State and Commerce Departments indicated that this
authority helps them ensure that licensees operate their
satellites consistent with U.S. national security interests and
international obligations.
We made additional changes to satisfy various departments
and agencies and we will make more today to address concerns
raised by NASA and the Departments of State, Defense, Commerce
and Transportation. We have not done everything they asked us
to do in the manner they asked, but we have proven that this
Committee will work constructively with the Administration to
address the serious and substantive concerns that it has.
That being said, I'm opposed to making changes simply to
accommodate bureaucratic turf battles. In general the
Administration and particularly the White House has tried to
manage this process in a positive way, and I appreciate its
efforts. We have taken several steps in the Administration's
direction. From the discussions we have had with the White
House and the Executive Departments the Administration has
identified two significant remaining concerns.
First, the Administration objects to the bill's
requirements for the Departments of State and Defense to
publish lists of national security concerns and international
obligations they will use to determine if a license is
consistent with our national security and international
obligations. Our intent here is to move the government in the
direction of telling the commercial sector what standards the
government will use when it judges them. That information also
helps companies avoid wasting time on activities that the
government might object to because they know in advance what
issues are important, and that's only fair.
Second, in existing law there are multiple references to
the need to ensure that licensed remote sensing operations are
consistent with national security concerns and international
obligations. There is one reference to international
obligations and policies and this bill removes that reference.
I am prepared to work toward a compromise on both these issues
in exchange for a White House commitment of active support for
the bill.
Let me say that again so that everyone is perfectly clear
about where I stand. I am prepared to resolve the
Administration's two main problems with this bill in the
interests of bipartisanship and the spirit of cooperation that
I think the White House and the Committee are working toward.
Unfortunately, the White House has instructed the Committee
that no unified statement of Administration position is
possible until after the Committee passes this legislation. I
regret that a coordination of the various agencies concerned is
not possible, but that's the call that has been made from up
the street.
I want a commitment from the White House that if we make a
deal the White House will back that deal and actively support
the bill, and I will not allow this Committee, the House or the
commercial space industry to be nickeled and dimed to death by
departments and agencies fighting turf battles. I don't think
the White House has any desire to see that happen either. So we
ought to be able to work this issue out after the Committee
does its business today.
It is my hope that by acting to pass this bill today we
will take another step forward in securing the President's
support for legislation so vital to the health of our
commercial space industry, and I recognize the gentleman from
California, Mr. Brown for an opening statement.
Mr. Brown of California. Thank you very much, Mr. Chairman.
I want to express my commendation for the views that you have
stated here. As always you are extremely forthright, and I
happen, on the substance of the matters that you have
discussed, to be more in agreement with you than I am with the
Administration. However, I am taking a position here that would
lead to getting the Administration on board, and I hope that we
can do so and get this bill passed and signed into law.
I am a co-sponsor of the bill, and I want to commend the
Chairman for the priority he is giving to passing it. His
action is in accord with the Committee's long-standing
bipartisan commitment to the development of a healthy and
robust commercial space sector.
Indeed, I believe that the Committee can be proud of the
role it has played over the past 2 decades in helping to
promote the emergence of commercial launch services and
commercial remote sensing and value-added services industries.
These industries are now poised to emulate the example of the
highly successful satellite communications industry which
continues to enjoy explosive growth coupled with the emergence
of exciting new services.
Nevertheless, more needs to be done to provide a
constructive and stable policy environment for commercial space
ventures. H.R. 1702 can play a useful, if modest, role in
promoting such an environment. I would note in particular the
provision of reentry licensing authority in H.R. 1702. If the
promise of advanced reusable launch vehicles and other reentry
vehicles is to be realized, we will need to ensure that the
required licensing framework is in place, and I believe this
bill provides that framework.
The bill is not perfect, of course. The Administration has
raised a number of, I say here thoughtful and constructive
concerns, but I'm not sure I want to emphasize that too much,
about the legislation. We are continuing to work with the
Administration to seek common ground, and I hope that we can
address some of the most significant concerns in today's
markup.
I really believe that the Chairman is more in tune with
many of the things I have said in the past when he says he is
opposed to making changes to satisfy bureaucratic turf battles
because I think a lot of that is involved here, but I do feel
an obligation to help guide this bill so that it ultimately can
get the President's signature.
I hope that I can assist the Chairman in working to resolve
these problems of getting a unified Administration position on
these things and in time that they can be embodied in a joint
amendment which we can offer at the time the bill is brought to
the Floor. I think we are not going to be able to resolve them
before we complete this markup, and I'm not insisting that we
do at this point.
Chairman Sensenbrenner. I thank the gentleman from
California.
Without objection, other members' opening statements will
be inserted in the record at this point.
[The prepared statement of Mr. Weldon follows:]
Statement of Rep. Dave Weldon on the Markup of the Commercial Space Act
of 1997
Washington, DC.----U.S. Representative Dave Weldon (R-FL) issued
the following statement in advance of today's Science Committee markup
of the Commercial Space Act of 1997:
Mr. Chairman, I want to thank you for your diligence in moving
this bill forward. Our Nation's future role in space depends a great
deal on the ability to develop a viable commercial market in and for
space, and H.R. 1702 marks an important step in that direction. I am
committed to working with you as this moves forward to the House Floor,
and I encourage our Senate colleagues to take this up as soon as
possible. This legislation deserves bipartisan Congressional and White
House support.
H.R. 1702 sends an important signal to the commercial space
community by moving the Federal Government towards increased purchase
of launch and remote sensing services that are available commercially.
It also instructs NASA to maximize the commercial opportunities on the
International Space Station, which is critical to fostering a private
sector role in the development and exploration of space.
I will be offering an amendment today that improves the bill, one
that ensures the potential contributions of state governments are not
overlooked as we promote the commercial space market. Some States--such
as California, Virginia, Florida, Texas, Alabama, New Mexico and
others--are investing state funds in space-related facilities and
activities.
My amendment simply states that all of the studies and reports
that are ordered under Section 101 of H.R. 1702 must consider the
potential role of state governments as ``brokers'' of commercial space
work between NASA and the private sector. State governments can provide
additional sources of capital and expertise that could be important
resources for commercial ventures, and my amendment would simply ensure
that they are not overlooked as Space Station commercialization
planning takes place.
I look forward to working with my colleagues as we consider this
bill.
Chairman Sensenbrenner. Without objection, the bill will be
considered as read and open for amendment at any point.
Hearing none, so ordered.
[A section-by-section analysis of H.R. 1702 and the text of
the bill follow:]
Chairman Sensenbrenner. I will ask that the members proceed
with the amendments in the order on the roster.
Amendment No. 1 is an en bloc amendment which I have which
the Clerk will report.
Ms. Schwartz. Amendments to H.R. 1702 offered by Mr.
Sensenbrenner.
Chairman Sensenbrenner. Without objection, the amendments
will be considered en bloc and considered as read.
Hearing none, so ordered.
[An explanation of the en bloc amendment and the text of
the amendment follow:]
Chairman Sensenbrenner. The members of the Committee have
in front of them a detailed explanation of the en bloc
amendment. This amendment represents an attempt to deal with
many of the concerns that have been raised by NASA and the
Departments of Commerce, Defense, State and Transportation.
We have also worked to resolve issues that have been raised
by Democrats and Republicans on this Committee. The amendment
does not represent the end of our work on this bill. I believe
that the Committee has made a good-faith effort to deal with
the numerous concerns that have been raised by the
Administration. What I want from this process is an agreement
with the Administration on what the major concerns are, how to
address those concerns and whether addressing the major
concerns will result in White House support for the bill.
The amendment makes several changes to the Commercial Space
Launch amendments to address concerns raised by the Department
of Transportation and industry. It also makes several changes
to Section 201, the amendments to the Land Remote Sensing
Policy Act of 1992 to accommodate concerns raised by the
Administration. This amendment contains changes that were
worked out between Republicans and Democrats on this Committee
and the Administration and it deserves support.
I would point out that in every member's packet there is a
list of the 12 different items of the bill that are amended. I
do not believe this amendment to be controversial, and yield
back the balance of my time.
The gentleman from California.
Mr. Brown of California. Mr. Chairman, I join in supporting
your en block amendments. I think they are constructive and
provide some useful improvements to the bill. As I have
indicated earlier, my problem is with the fact that there are
still some unaddressed objections which I think we will
ultimately need to address from the Administration.
I ask unanimous consent to put into the record three
letters from the Defense, State and Justice Departments with
regard to their problems.
Chairman Sensenbrenner. Without objection.
[The letters referred to follow:]
Mr. Brown of California. As I said, I will do my very best
to help the Chairman resolve this matter in an appropriate way.
Chairman Sensenbrenner. The gentleman's time has expired.
Is there further discussion on the en bloc amendments?
[No response]
Hearing none, all those in favor will signify by saying
aye.
[Chorus of ayes]
Chairman Sensenbrenner. Opposed, no.
[No response]
The ``ayes'' have it and the amendments are agreed to.
The next amendment on the roster is by the gentleman from
Florida, Doctor Weldon.
Mr. Weldon of Florida. Mr. Chairman, I have an amendment at
the desk.
Chairman Sensenbrenner. The Clerk will report the
amendment.
Ms. Schwartz. Amendment to H.R. 1702 offered by Mr. Weldon
of Florida. Page 7 after line----
Chairman Sensenbrenner. Without objection, the amendment is
considered as read, and the gentleman from Florida is
recognized for 5 minutes.
[The text of the amendment follows:]
Mr. Weldon of Florida. Mr. Chairman, I want to thank you
for your diligence in moving this bill forward. Our Nation's
future role in space depends a great deal on the ability to
develop a viable commercial market in and for space, and H.R.
1702 makes an important step in that direction.
I am committed to working with you as this moves forward to
the House Floor, and I encourage our Senate colleagues to take
this measure up as soon as possible.
I offer an amendment today that I believe improves the
bill. As you know, Mr. Chairman, many States are getting
actively involved in the Space Program, and I want to ensure
that potential contributions are not overlooked as we promote
the commercial space market. Some States, including my on State
of Florida are investing State funds in space-related
facilities and activities.
Specifically my amendment would ensure that the role of
state governments is not ignored as NASA considers the
commercialization of the International Space Station. It simply
states that all of the studies and reports that are ordered
under Section 101 of H.R. 1702 must consider the potential role
of state governments as brokers of commercial space work
between NASA and the private sector.
You might wonder what this means. The State of Florida, for
example, provided the up-front funding for a new facility to
store solid rocket motors. The State then leased back the
facility to the aerospace company using it, which is paying off
the initial investment made by the State. This arrangement
enabled the company to make a long-term commercial investment
in partnership with the State, an investment they might not
have been able to do otherwise.
State governments can provide additional sources of capital
and expertise that could be important resources for commercial
ventures, and this amendment would simply ensure that they are
not overlooked as Space Station commercialization planning
takes place. This means that States like California, Virginia,
New Mexico, Alabama, Texas, Florida and others that have active
roles in the space program will have an opportunity to
participate in the exciting commercial space markets of the
future.
I urge all of my colleagues to support this amendment.
Chairman Sensenbrenner. The gentleman's time has expired.
Is there further discussion on the amendment of the
gentleman from Florida?
[No response]
Hearing none, all those in favor will signify by saying
aye.
[Chorus of ayes]
Chairman Sensenbrenner. Opposed, no.
[No response]
The ``ayes'' have it and the amendment is agreed to.
Are there further amendments to the bill?
[No response]
If not, all those in favor of the bill please signify by
saying Aye.
[Chorus of Ayes]
Chairman Sensenbrenner. Opposed, No.
[No response]
The ``Ayes'' have it and the motion is agreed to.
The Chair now recognizes the gentleman from Alabama for a
motion to report the bill.
Mr. Rohrabacher. Mr. Chairman.
Chairman Sensenbrenner. For what purpose does the gentleman
from California seek recognition?
Mr. Rohrabacher. I ask for unanimous consent to submit a
Department of Commerce letter on H.R. 1702 for the record.
Chairman Sensenbrenner. Without objection.
[The letter referred to follows:]
Chairman Sensenbrenner. The gentleman from Alabama, Mr.
Cramer.
Mr. Cramer. Mr. Chairman, I move that the Committee report
the bill, H.R. 1702, the Commercial Space Act of 1997, as
amended.
Furthermore, I move to instruct the staff to prepare the
legislative report, to make technical and conforming amendments
and that the Chairman take all the necessary steps to bring the
bill before the House for consideration.
Chairman Sensenbrenner. The Chair notes the presence of a
reporting quorum. The question is on the motion of the
gentleman from Alabama.
All those in favor will signify by saying aye.
[Chorus of ayes]
Chairman Sensenbrenner. Opposed, no.
[No response]
The ``ayes'' have it and the bill is reported.
Without objection, members will have 2 subsequent calendar
days in which to submit supplemental, Minority, or additional
views on this measure pursuant to Clause 1 of Rule 20 of the
Rules of the House of Representatives.
The Committee authorizes the Chairman to offer such motions
as may be necessary in the House to go to conference with the
Senate on H.R. 1702 or a similar Senate bill.
There being no further business before the Committee, the
Chair declares the Committee adjourned and thanks the members
for their cooperation.
[The Committee adjourned at 1:33 p.m, subject to the call
of the Chair.]