[Senate Report 105-195]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 387
105th Congress                                                   Report
                                SENATE

 2d Session                                                     105-195
_______________________________________________________________________


 
   NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AUTHORIZATION ACT, 
                   FISCAL YEAR 1998, 1999, and 2000

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                    on

                                S. 1250




                                     

                  May 22, 1998.--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                       one hundred fifth congress

                             second session

                     JOHN McCAIN, Arizona, Chairman

TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             WENDELL H. FORD, Kentucky
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas            Virginia
OLYMPIA SNOWE, Maine                 JOHN F. KERRY, Massachusetts
JOHN ASHCROFT, Missouri              JOHN B. BREAUX, Louisiana
BILL FRIST, Tennessee                RICHARD H. BRYAN, Nevada
SPENCER ABRAHAM, Michigan            BYRON L. DORGAN, North Dakota
SAM BROWNBACK, Kansas                RON WYDEN, Oregon

                       John Raidt, Staff Director

                       Mark Buse, Policy Director

     Ivan A. Schlager, Democratic Chief Counsel and Staff Director

             James S. W. Drewry, Democratic General Counsel


                                     
                                                       Calendar No. 387
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-195
_______________________________________________________________________


NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AUTHORIZATION ACT, FISCAL 
                       YEAR 1998, 1999, and 2000

                                _______
                                

                  May 22, 1998.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 1250]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1250), ``A Bill To authorize 
appropriations to the National Aeronautics and Space 
Administration for fiscal years 1998 and 1999, and for other 
purposes'', having considered the same, reports favorably 
thereon with an amendment in the nature of a substitute, and an 
amendment to the title, and recommends that the bill as amended 
do pass.

                          Purpose of the Bill

  The purpose of the bill as reported is to authorize 
appropriations for the National Aeronautics and Space 
Administration (NASA) totaling $13,638,000,000 for fiscal year 
(FY) 1998, $13,465,000,000 for FY 1999, and $13,702,600,000 for 
FY 2000 as follows:

                                                                        
------------------------------------------------------------------------
       Fiscal Year 1998                 Committee Authorization         
------------------------------------------------------------------------
Human Space Flight...........  $5,506,500,000                           
Science, Aeronautics, and      $5,680,000,000                           
 Technology.                                                            
Mission Support..............  $2,433,200,000                           
Inspector General............  $18,300,000                              
------------------------------------------------------------------------


                                                                        
------------------------------------------------------------------------
       Fiscal Year 1999                 Committee Authorization         
------------------------------------------------------------------------
Human Space Flight...........  $5,511,000,000                           
Science, Aeronautics, and      $5,457,400,000                           
 Technology.                                                            
Mission Support..............  $2,476,600,000                           
Inspector General............  $20,000,000                              
------------------------------------------------------------------------


                                                                        
------------------------------------------------------------------------
       Fiscal Year 2000                 Committee Authorization         
------------------------------------------------------------------------
Human Space Flight...........  $5,472,200,000                           
Science, Aeronautics, and      $5,794,800,000                           
 Technology.                                                            
Mission Support..............  $2,415,600,000                           
Inspector General............  $20,000,000                              
------------------------------------------------------------------------

                          Background and Needs

  In the past, the main challenges NASA faced were 
technological. Today, NASA faces a new set of challenges which 
are budgetary as well as technical, but no less daunting than 
the Apollo missions to the Moon.
  Over the last three years NASA has conducted a comprehensive 
review of its entire operation to identify potential areas for 
cost savings, begun new technology programs to reduce the cost 
of access to space and of space science and exploration 
missions, and committed the agency to reducing its workforce 
from 25,000 full time equivalents (FTE) to fewer than 18,000 by 
the year 2000. There is broad appreciation for the difficulty 
in making these budget cuts while at the same time fulfilling 
its commitment to major multi-billion-dollar initiatives like 
the International Space Station and Mission to Planet Earth 
(MTPE).
  To successfully meet these new budget and program challenges, 
NASA cannot settle for marginal changes, but must reassess its 
traditional ways of doing business. In carrying out its goals 
and missions, NASA will need, when feasible and practical, to 
increase its use of cost-sharing partnerships with industry, 
academia, and non-federal entities, and with other space-faring 
nations when those partnerships are cost-effective and provide 
enhancement. The agency should also explore in greater depth 
the possibilities of privatizing those activities that can be 
more cost-effectively performed by the private sector and 
strengthen its commitment to purchasing goods and services on a 
commercial basis when economically feasible to the taxpayer. 
NASA should further explore all possibilities of using small 
business as a means of reducing costs and improving 
efficiencies.
  Equally important in justifying its budget, NASA must make 
special efforts to ensure that its missions and programs are 
relevant to both the individuals and interests directly 
involved, as well as the general public. For instance, the 
global climate change research conducted through the MTPE 
program, if managed properly, has the potential to provide 
amounts of information that would be beneficial to the public 
in such diverse areas as agriculture, forestry, mineral 
exploration, water resource management, and land-use planning. 
Accordingly, as NASA continues to develop the MTPE program, it 
should actively seek input from the diverse pool of potential 
end users of this data. Similarly, NASA's space education and 
outreach activities like the Experimental Program to Stimulate 
Competitive Research, the Teacher Resource Centers, and the 
Space Grant Program have proven very effective in giving 
citizens of all ages and backgrounds, as well as a broad range 
of government, private sector, and academic institutions, a 
stake in the U.S. space program and our ongoing technological 
revolution. NASA should continue to maintain these important 
education and outreach activities.
  As NASA addresses these and other budgetary and programmatic 
challenges, it is important that safety continue to be a top 
priority. Technological risk is an unavoidable necessity as we 
move our space program forward. Safety should continue to be a 
top priority out of concern for the lives of the people who 
make the U.S. space program a success. Risk assessment and 
management will take on increasing importance in the upcoming 
decade when assembly of the International Space Station will 
require astronauts to perform an unprecedented amount of 
spacewalking to build, maintain, and operate it and will force 
the Space Shuttle Program to satisfy unusually high launch 
demands.
  Even within current federal budget constraints, NASA requires 
a certain minimal level of funding to plan and carry out the 
bold space activities that have historically defined the 
agency. Funding must be sufficient to support core ongoing 
programs, as well as new initiatives to address future 
aerospace needs. This authorization legislation for FY 1998, FY 
1999, and FY 2000 is intended to provide the agency with the 
funding and policy guidance to maintain a robust and balanced 
space program in this environment. Adequate funding along with 
sound fiscal management by NASA are critical components to the 
future success of the agency.

                          Legislative History

  On February 11, 1997, the Administration submitted its FY 
1998 budget request for NASA to the Congress. During the 105th 
Congress, the Subcommittee on Science, Technology, and Space 
held three oversight hearings, chaired by Senator Frist, on 
NASA's programs. On April 24, 1997, the Subcommittee held a 
hearing on the FY 1998 budget and programs of NASA, at which 
time testimony was heard from NASA Administrator Daniel S. 
Goldin; Marcia Smith, Specialist in Aerospace and 
Telecommunications Policy, Congressional Research Service; Dr. 
Kenneth F. Galloway, Dean, School of Engineering, Vanderbilt 
University; and Jerry Gray, Director of Aerospace, American 
Institute of Aeronautics and Astronautics. On June 18, 1997, a 
second hearing was held which focused specifically on the 
International Space Station. At that hearing, the Subcommittee 
heard testimony from Mr. Daniel S. Goldin, Administrator, 
National Aeronautics and Space Administration; Mr. Thomas J. 
Schulz, Associate Director, National Security and International 
Affairs, U.S. General Accounting Office; Ms. Marcia Smith, 
Specialist in Aerospace and Telecommunications Policy, 
Congressional Research Service, Library of Congress; and Dr. 
Lawrence J. DeLucas, Director, Center for Macromolecular 
Crystallography, University of Alabama at Birmingham. Lastly, 
on September 18, 1997, as part of its continuing oversight 
responsibility and the evolving needs of the International 
Space Station, the Subcommittee heard testimony from NASA 
Administrator Daniel S. Goldin; Mr. Allen Li, Associate 
Director, National Security and International Affairs, U.S. 
General Accounting Office; and Mr. Douglas C. Stone, Vice 
President and Program Manager, International Space Station, 
Boeing Defense and Space Group, Houston, Texas.
  On October 3, 1997, Senator Frist, along with Senators 
Rockefeller, Burns, and Stevens introduced S.1250, a bill to 
authorize appropriations for NASA for FY 1998 and FY 1999. On 
February 2, 1998, the Administration submitted its FY 1999 
budget request for NASA to the Congress. On March 12, 1998, the 
Committee met in executive session and, on a voice vote, 
ordered the bill, as amended, reported.

                      Summary of Major Provisions

  For FY 1998, the bill, as reported, authorizes a total of 
$13,638,000,000 for NASA.
  For FY 1999, the bill, as reported, authorizes a total of 
$13,465,000,000 for NASA.
  For FY 2000, the bill, as reported, authorizes a total of 
$13,702,600,000 for NASA.
  For FY 1998, the $13,638,000,000 authorized for NASA is 
allocated among its major accounts as follows: $5,506,500,000 
for Human Space Flight; $5,680,000,000 for Science, 
Aeronautics, and Technology; $2,433,200,000 for Mission 
Support; and $18,300,000 for the Office of the Inspector 
General (OIG).
  For FY 1999, the $13,465,000,000 authorized for NASA is 
allocated among its major accounts as follows: $5,511,000,000 
for Human Space Flight; $5,457,400,000 for Science, 
Aeronautics, and Technology; $2,476,600,000 for Mission 
Support; and $20,000,000 for the OIG. In providing authorized 
levels for FY 1999, the Committee provided for the 
Administration's request for each account.
  For FY 2000, the $13,702,600,000 authorized for NASA is 
allocated among its major accounts as follows: $5,472,200,000 
for Human Space Flight; $5,794,800,000 for Science, 
Aeronautics, and Technology; $2,415,600,000 for Mission 
Support; and $20,000,000 for the OIG.
International Space Station
  The reported bill authorizes $2,328,300,000 for FY 1998, 
$2,270,000,000 for FY 1999, and $2,134,000,000 for FY 2000 for 
the International Space Station; an additional $50,000,000 is 
provided for FY 1998 for Russian Program Assurance to allow 
completion of the initial step in the construction of the 
Interim Control Module. Funding for the International Space 
Station is $207,000,000 more than the FY 1998 budget request, 
reflecting $100,000,000 in new obligational authority provided 
for FY 1998 appropriations (P.L. 105-65). In addition, 
$5,000,000 in funds were reprogrammed fromthe Space Shuttle 
Operations Program, $22,000,000 in funds reprogrammed from Payload and 
Utilization Operations (identified in the FY 1999 budget request), and 
$80,000,000 was provided through an appropriations transfer from the 
Mission Support account in the FY 1998 appropriation (P.L. 105-65). The 
$50,000,000 for Russian Program Assurance was made available through a 
reprogramming of $50,000,000 from the Space Shuttle Operations Program. 
This authorization level is partially responsive to NASA's request for 
an additional $430,000,000 above the FY 1998 budget request for the 
International Space Station to correct overruns, to purchase spares, 
and to enable software engineering and integration. This additional 
funding also permits NASA to sustain its current revised schedule with 
construction completed in 2003, assuming pending resolution of the 
first element launch. The bill also completes funding for nine Shuttle 
missions to the Russian space station Mir between 1995 and 1998. The 
Shuttle-Mir missions are helping NASA and its international partners 
prepare for the construction of the International Space Station.
  Funding levels for the International Space Station for FY 
1999 and FY 2000 are provided at levels equal to the 
Administration's stated requirements.
  The authority to transfer $173,000,000 in transfer authority 
from other accounts, requested in NASA's FY 1999 budget, is not 
included in the bill. The Committee is reserving its judgment 
on the need for the additional funding pending satisfactory 
resolution.

Space Shuttle

  The reported bill would authorize $2,922,800,000 for the 
Space Shuttle Program for FY 1998 which includes the Space 
Shuttle Safety and Performance upgrades, $3,059,000,000 is 
authorized for FY 1999, and $3,150,700,000 is authorized for FY 
2000. This level would enable NASA to undertake Shuttle 
missions during FY 1998, FY 1999, and FY 2000. At NASA's 
request $50,000,000 for FY 1998 funding is redirected from 
Shuttle Operations to Russian Program Assurance and an 
additional $5,000,000 is redirected from the Space Shuttle 
Program to the International Space Station. The authorization 
would also support NASA's programs to improve and upgrade the 
Shuttle orbiters performance and safety. The funding level 
authorized by the bill assumes cost savings made possible by 
the implementation of measures recommended by the 1995 
comprehensive review of the Shuttle program, which assumed 
increases in efficiency, and the transition to a consolidation 
of Shuttle operations contracts under one prime contractor.

Payload and Utilization Operations

  The reported bill would authorize the FY 1998 requested level 
of $205,400,000 for Payload and Utilization Operations, 
$182,000,000 is authorized for FY 1999, and $187,500,000 for FY 
2000. This account supports the processing and flight of 
Shuttle payloads, efforts to reduce operations costs, and the 
implementation of flight and ground systems improvements.

Space Science

  The reported bill would authorize $2,033,800,000 for FY 1998, 
$2,058,400,000 is authorized for FY 1999, and $2,207,400,000 
for FY 2000. The funding level will permit a continuation of 
NASA's ongoing space science activities in physics, astronomy, 
and planetary exploration, including the Advanced X-ray 
Facility (AXAF), Thermosphere, Ionosphere, Mesosphere, 
Energetics and Dynamics (TIMED), the Relativity Mission, the 
Gravity Probe-B (GPB) program, the Explorer program, the 
Cassini mission to Saturn, the Discovery program, the Mars 
Surveyor mission, the Stratospheric Observatory for Infrared 
Astronomy (SOFIA), and the Space Infrared Telescope Facility 
(SIRTF). The bill would also support the budget request for the 
New Millennium program, an important initiative to develop 
technologies that will enable more frequent and less costly 
space missions on smaller spacecraft.

Life and Microgravity Sciences and Applications

  The reported bill would authorize $214,200,000 for FY 1998, 
$242,000,000 for FY 1999, and $257,000,000 for FY 2000 for the 
life and microgravity sciences and applications program. The 
purpose of this program is to use the space environment to 
better understand the response of biological and materials 
systems to weightlessness. The authorized levels will support 
continuation of NASA's ongoing research in the space 
biological, physical, and chemical sciences, and related work 
in technology development and applications.

Mission To Planet Earth (Earth Science Enterprise)

  The reported bill would authorize $1,417,300,000 for FY 1998, 
$1,372,000,000 for FY 1999, and $1,492,000,000 for FY 2000 to 
fully fund the MTPE Program, NASA's effort to employ the latest 
satellite technology to understand and predict the global 
climate trends, and humanity's impact on the environment, that 
affect our daily lives. Mission To Planet Earth is NASA's 
contribution to the multi-agency U.S. Global Change Research 
Program. The authorized amount assumes full funding for each of 
the program's main components including: the Earth Observing 
System (and Landsat), the Earth Observing System Data and 
Information System, Earth Probes, and research and data 
analysis.

Aeronautics and Space Transportation Technology

  The reported bill authorizes $1,483,900,000 for FY 1998, 
$1,305,000,000 for FY 1999, and $1,344,000,000 for FY 2000. 
This account provides for funding for three programs: (1) 
Aeronautical Research and Technology; (2) Advanced Space 
Transportation Technology; and (3) Commercial Technology.
  For the Aeronautical Research and Technology program, the 
reported bill would authorize the requested level of 
$920,100,000 for FY 1998, and $786,000,000 for FY 1999 as 
requested. No specific funding level is being stipulated for FY 
2000, thus providing NASA with the necessary flexibility to 
ascertain the appropriate level. This program is dedicated to 
ensuring U.S. leadership in aeronautics and promoting and 
facilitating the transfer of aeronautics technology to industry 
and government agencies such as the Department of Defense and 
the Federal Aviation Administration in order to promote better 
civilian and military aircraft and a safer national air space 
system. The authorized level will support continuation of the 
baseline program, including its subsonic, high-speed, and 
hypersonic research activities. The Aviation Safety Program is 
authorized at a level of $100,000,000 per year through FY 2000.
  For the Advanced Space Transportation Technology program, the 
reported bill would authorize $417,100,000 for FY 1998, and 
$388,600,000 for FY 1999. No specific funding level is 
stipulated for FY 2000, in order to provide NASA with 
flexibility to ascertain the appropriate level. NASA's Advanced 
Space Transportation Technology program is intended to 
stimulate the development of advanced space technologies to 
improve U.S. industrial competitiveness. Included within the 
authorization is the Reusable Launch Vehicle (RLV) program. The 
RLV program is aimed at developing and flight testing the fully 
reusable technologies that may lead to the eventual development 
of a replacement for the Space Shuttle. Incorporated within the 
RLV effort are two separate but related experimental flight 
demonstrator programs: the X-34 Small Reusable Launch Vehicle 
and the X-33 Advanced Technology Demonstrator. It is 
anticipated that these activities will develop the key 
component technologies needed to make dramatic reductions in 
the cost of access to space.
  For the Commercial Technology program, the reported bill 
would authorize $146,700,000 for FY 1998 and $130,400,000 for 
FY 1999. No specific funding level is stipulated for FY 2000, 
in order to provide NASA with flexibility to ascertain the 
appropriate level. NASA's Commercial Technology Program is to 
share the technology program results with the United States 
industrial community. The technology commercialization program 
is intended to assure that NASA's technology developments 
contribute to a significant improvement in the quality of 
American life and an increase in America's international 
competitiveness.

Mission Communications Services

  The reported bill would authorize Mission Communications 
Services at the President's FY 1998 budget request level of 
$400,800,000. This authorized level will provide sufficient 
support for NASA's vast ground and space-based communications 
systems, which are essential to every NASA space mission. Also, 
as requested in the President's budget submitted earlier this 
year, $380,000,000 is authorized for FY 1999, and $391,400,000 
is authorized for FY 2000, which provides a modest increase for 
this activity.

Academic Programs

  The reported bill would authorize NASA's Academic Programs at 
$130,000,000 for FY 1998 reflecting FY 1998 appropriations 
activity, $100,000,000 for FY 1999, as requested, and 
$103,000,000 for FY 2000. For FY 1998, the authorized amount is 
$33,600,000 above the President's request (as provided in P.L. 
105-65), providing for enhanced education programs, at the K-12 
level, at Historically Black Colleges and Universities and 
other minority-serving institutions, and through the 
Experimental Program to Stimulate Competitive Research 
(EPSCoR). NASA's Academic Programs have played an important 
role in sustaining U.S. academic achievement in mathematics and 
science and strengthening mathematics and science education at 
all levels, from pre-college through graduate school. Within 
the total authorization, $10,000,000 is allocated for EPSCoR in 
each fiscal year, which would be a substantial increase over 
the FY 1998 and FY 1999 budget request of $4,600,000. NASA's 
EPSCoR is a critical source of funds for important academic 
space science research being conducted in our rural states.

Safety, Reliability, and Quality Assurance

  The reported bill would authorize the Safety, Reliability, 
and Quality Assurance programs at the FY 1998 budget request of 
$37,800,000 and at the President's FY 1999 budget request level 
of $35,600,000 for both FY 1999 and 2000. This program is 
designed to develop and implement risk management practices 
throughout NASA.

Space Communications Systems

  The reported bill would authorize $209,200,000 for FY 1998 
for NASA's Space Communications Systems, $177,000,000 for FY 
1999, and $136,000,000 for FY 2000. The FY 1998 level is 
$36,500,000 below the requested level, reducing the Space 
Network activity, reflecting reallocation of $25,000,000 to the 
International Space Station (P.L. 105-65) and $11,500,000 to 
Research Operations Support for additional implementation 
requirements for the agency-wide Integrated Financial 
Management Program. This account supports the tracking, 
telemetry, data acquisition, and data processing activities for 
all NASA spacecraft. Included among these activities is the 
Tracking and Data Relay Satellite (TDRS) program, which 
provides operational support for NASA and other domestic and 
international users of NASA's Space Network for space 
communications purposes. The funding level also supports the 
TDRS replenishment program to develop a new series of tracking 
satellites, the first of which is scheduled for launch in 1999.

Research and Program Management

  The reported bill would authorize $2,051,800,000 for FY 1998, 
$18,500,000 below the 1998 budget request for the Research and 
Program Management account at NASA. The authorized level is a 
reduction to reflect a reallocation of funds to the 
International Space Station (P.L. 105-65). This account funds 
the salaries, travel expenses, and other administrative 
expenses for NASA's personnel. $2,099,000,000 in funding is 
authorized for FY 1999 and $2,079,000,000 for FY 2000.

Construction of Facilities

  The reported bill would authorize $134,400,000 for FY 1998, 
for the Construction of Facilities activity to fund the repair 
and upgrade of existing facilities and the construction of new 
facilities. This is $15,000,000 less than the FY 1998 budget 
request, reflecting a reallocation to the International Space 
Station (P.L. 105-65). A total of $165,000,000 is authorized 
for FY 1999, as requested, and $165,000,000 is authorized for 
FY 2000.

Inspector General

  The reported bill would authorize the OIG at $18,300,000 for 
FY 1998, $20,000,000 for FY 1999, and $20,000,000 for FY 2000. 
The OIG is a statutorily-created independent organization 
within NASA charged with investigating cases of fraud, waste, 
and abuse at the agency.

                            Estimated Costs

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

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 3, 1998.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1250, the National 
Aeronautics and Space Administration Authorization Act for 
Fiscal Years 1998, 1999, and 2000.
    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), Pepper Santalucia (for the state and 
local impact), and Lesley Frymier (for the private-sector 
impact).
            Sincerely,
                                                   June E. O'Neill.
    Enclosure.

               congressional BUDGET OFFICE cost estimate

S. 1250--National Aeronautics and Space Administration Authorization 
        Act for Fiscal Years 1998, 1999, and 2000

    S. 1250 would authorize annual funding for the National 
Aeronautics and Space Administration (NASA) for fiscal years 
1998 through 2000. It also would expand the agency's authority 
to indemnify certain NASA contractors against some potential 
liability claims, and would revise various policies governing 
space programs. Assuming the appropriation of the specified 
amounts for 1999 and 2000, CBO estimates that implementing this 
bill would result in additional discretionary spending of $27.2 
billion over the 1999-2003 period. (Funding for 1998 has 
already been appropriated at the level specified in S. 1250.)
    Enacting the bill could affect both direct spending and 
receipts; therefore, pay-as-you-go procedures would apply. CBO 
estimates, however, that any such effects would not be 
significant.
    S. 1250 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act of 1995 (UMRA) and would 
impose no 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 by UMRA.
    Description of the bill's major provisions: S. 1250 
includes both spending and regulatory measures. The amounts 
authorized to be appropriated would be subject to certain 
limitations, including a cap on cumulative funding for the 
space station. In addition, S. 1250 would direct NASA to submit 
a plan to privatize the space shuttle and to issue reports and 
guidelines related to the space station, the use of surplus 
property, and data disclosure. NASA would be required to 
acquire data on space and earth sciences from commercial 
vendors when cost-effective and to follow certain procurement 
practices.
    S. 1250 also would authorize NASA to indemnify or insure 
developers of experimental reusable launch vehicles under 
certain conditions. To be eligible for indemnification, 
developers would be required to meet safety standards, provide 
primary insurance, and agree to cross-waivers of liability with 
the federal government. Federal payments, which would be 
limited to $1.5 billion per incident, would be made under terms 
and procedures similar to those in existing law for 
indemnifying users of the space shuttle and commercial space 
vehicles licensed by the Department of Transportation (DOT). 
Under those guidelines, NASA could pay claims using previously 
appropriated but unobligated funds or could seek additional 
appropriations under expedited Congressional review procedures. 
This indemnification authority would expire on December 31, 
2002, but could be extended through September 30, 2005, if 
needed for the operation of an experimental vehicle.
    Finally, S. 1250 would prohibit the launch of any payload 
with obtrusive space advertising by existing and prospective 
licensees of commercial space transportation systems. The bill 
also would encourage the President to negotiate agreements with 
foreign countries to ban such advertising worldwide.
    Estimated cost to the Federal Government: CBO estimates 
that implementing S. 1250 would increase discretionary spending 
by a total of $27.2 billion over the 1999-2003 period, assuming 
the appropriation of the authorized amounts. Allowing NASA to 
indemnify experimental reusable launch systems could affect 
direct spending, but CBO estimates that any such payments would 
not be significant over the next five years. Provisions barring 
the licensing of space payloads with obtrusive advertising 
could affect receipts, but we estimate that the effects would 
not be significant.
    The estimated budgetary impact of S. 1250 is shown in the 
following table. The costs of this legislation fall primarily 
within budget function 250 (general science, space, and 
technology).

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1998     1999     2000     2001     2002     2003 
----------------------------------------------------------------------------------------------------------------
             SPENDING SUBJECT TO APPROPRIATION                                                                  
NASA Spending Under Current Law:                                                                                
    Budget Authority \1\..................................   13,638        0        0        0        0        0
    Estimated Outlays.....................................   14,323    5,282      497      162        0        0
Proposed Changes:                                                                                               
    Authorization Level...................................        0   13,464   13,703        0        0        0
    Estimated Outlays.....................................        0    8,366   13,096    5,082      460      164
NASA Spending Under S. 1250:                                                                                    
    Authorization Level \1\...............................   13,638   13,465   13,703        0        0        0
    Estimated Outlays.....................................   14,323   13,648   13,593    5,244      460      164
----------------------------------------------------------------------------------------------------------------
\1\ The 1998 level is the amount appropriated for that year, the amount authorized by the bill for 1998 is the  
  same as the amount appropriated.                                                                              

    Basis of Estimate: Spending Subject to Appropriation. For 
the purposes of this estimate, CBO assumes that appropriations 
will be provided near the beginning of each fiscal year and 
that outlays will follow historical patterns for such 
activities.
    Allowing NASA to insure or indemnify developers of 
experimental reusable launch vehicles could result in 
additional discretionary spending over the next five years, but 
CBO expects the increase would not be significant. For the 
purposes of this estimate, we assume that NASA would opt to 
indemnify the developers rather than purchase insurance. 
According to agency officials, neither DOT nor NASA has ever 
paid claims to third parties for incidents involving commercial 
space transportation systems or users of the space shuttle. 
Thus far, the costs associated with incidents have been small 
and have been covered by private insurance. Although these 
reusable launch vehicles are experimental, NASA asserts that 
the probability of an incident--and the likelihood of federal 
payments--would be similar to that of existing launch vehicles. 
Hence, CBO estimates that these provisions would have a 
negligible effect on discretionary spending.
    Other provisions in the bill would not have a significant 
effect on discretionary spending.
    Direct Spending. S. 1250 would authorize the Administrator 
of NASA to indemnify claims up to $1.5 billion regardless of 
whether amounts are available from appropriations to pay such 
claims. (This contrasts with DOT's indemnification authority, 
which is explicitly limited to amounts provided in 
appropriation acts.)
    Giving NASA the authority to indemnify developers of 
experimental reusable launch vehicles could result in direct 
spending, but we estimate that any such spending would not be 
significant. Assuming that the risk of claims would be similar 
to that of existing launch vehicles and that private insurance 
and appropriated funds would be tapped first, the likelihood of 
direct spending for indemnification payments would be small. If 
NASA were obligated to pay claims in excess of the amounts 
available from private insurance and appropriations, CBO 
assumes that any additional payments would be made from the 
Claims and Judgments Fund, which is direct spending.
    Receipts. Violations of the prohibition on obstrusive space 
advertising could result in the collection of civil penalties, 
but CBO estimates that any additional receipts would not be 
significant. The Department of Transportation 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 
and receipts. Provisions in the bill authorizing NASA to 
indemnify developers of certain experimental vehicles could 
result in direct spending, but CBO estimates that no 
significant costs would result. Prohibiting obtrusive space 
advertising could result in the collection of additional civil 
penalties, but we estimate that the effect on receipts would be 
negligible.
    Estimated impact on State, local, and tribal governments: 
S. 1250 contains no intergovernmental mandates as defined in 
UMRA, and would not impose any costs on state, local, or tribal 
governments. Currently, about $830 million of NASA's research 
and development budget goes to academic institutions, including 
public universities. With the reauthorization of NASA's 
programs, this funding would continue.
    Estimated impact of the private sector: S. 1250 would 
create a new private-sector mandate by prohibiting holders of 
licenses for commercial space launches from launching a payload 
containing material to be used for obtrusive space advertising. 
Obtrusive space advertising would be defined as advertising in 
outer space that is capable of being recognized by a human 
being on the surface of the Earth without the aid of a 
telescope or other technological device. Based on information 
provided by the Department of Transportation, CBO estimates 
that this new private-sector mandate would impose no direct 
costs on license holders.
    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. Differences 
between the estimates are attributable to differences in the 
two bills. For example, the House bill would authorize funding 
for multiple agencies but for a shorter period of time. While 
the House bill would expand the Department of Transportation's 
authority to include reentry vehicles, sites, and services, it 
would not authorize NASA to insure or indemnify experimental 
reusable launch vehicles.
    Estimate prepared by: Federal costs: Kathleen Gramp. Impact 
on State, local, and tribal governments: Pepper Santalucia. 
Impact on the private sector: Lesley Frymier.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       number of persons covered

  S. 1250, as reported, reauthorizes the programs and 
activities of the National Aeronautics and Space Administration 
for fiscal years 1998, 1999, and 2000. It is the Committee's 
judgment that the bill will not subject any individuals or 
businesses affected by the bill to additional regulation with 
the exception of section 317 and will not increase the 
paperwork requirement for such individuals or businesses. 
Section 317 provides new safety and insurance requirements for 
the test flights of the X-33 and X-34 programs.

                            economic impact

  This legislation provides sufficient authorization levels to 
sustain ongoing and new awards, cooperative agreements, and 
contracts in the space community. Section 317 allows the X-33 
and X-34 test vehicle to fly, potentially enhancing the 
commercial re-entry business.

                                privacy

  This legislation will not have an adverse impact on the 
personal privacy of individuals.

                               paperwork

  This legislation will not increase the paperwork requirement 
for individuals or businesses. The NASA Administrator is, 
however, required to submit the following reports to the 
Congress: 1) a study on the opportunities for commercial 
providers to play a role in the International Space Station; 2) 
an independently-conducted market survey to evaluate and 
examine potential industry interest in providing commercial 
goods and services; 3) a detailed contingency plan for the 
removal or replacement of each element of the International 
Space Station for which Russia is responsible that lies within 
the critical path of the International Space Station; 4) a 
feasibility study of the major recommendation of its own 
independent review team (the Kraft Commission) that the Space 
Shuttle program should be privatized; and 5) a report 
addressing the impact on NASA and its partners of changes 
implemented through amendments to the NASA mid-range 
procurement test program.
  A study by the National Research Council of the National 
Academy of Sciences is requested that evaluates the engineering 
challenges posed by both extravehicular and space operation 
requirements of the United States and other foreign countries, 
the potential launch needs to upgrade or replace equipment or 
components, and the decommissioning and disassembly 
requirements of the International Space Station.

                      Section-by-Section Analysis

Section 1. Short Title; Table of Contents.

  This section cites the bill as the ``National Aeronautics and 
Space Administration Act for Fiscal Years 1998, 1999, and 
2000.'' The section also provides a table of contents to assist 
finding key sections of the bill.

Section 2. Findings.

  This section sets forth Congressional findings regarding NASA 
and US space policy. The findings focus on such areas as: (1) 
the importance of continued reforms at NASA; (2) NASA's 
continual leadership in aeronautics and space research; (3) the 
potential impact of new technologies and future US space 
missions; (4) the federal government's efforts to invest in 
areas in which there are no commercial providers; (5) the 
benefits of international cooperation; and (6) the benefits of 
joint cooperative activities with other agencies.

Section 3. Definitions.

  This section defines the terms ``Administrator,'' 
``commercial provider,'' ``critical path,'' ``grant 
agreement,'' ``institution of higher education,'' ``major 
reorganization,'' and ``State'' for the purposes of the bill.

                Title I--Authorization of Appropriations

                       Subtitle A--Authorizations

Section 101. Human Space Flight.

  This section authorizes a total of $5,506,500,000 for FY 
1998, $5,511,000,000 for FY 1999, and $5,472,200,000 for FY 
2000 for the Human Space Flight account. Specifically in 
subsection (a) there would be authorized to be appropriated for 
the International Space Station, $2,328,300,000 for FY 1998, 
$2,270,000,000 for FY 1999 and $2,134,000,000 for FY 2000. Also 
in this subsection, there would be authorized to be 
appropriated for the Russian Program Assurance, $50,000,000 for 
FY 1998. No funds are authorized for this program for FY 1999 
or FY 2000. There would be authorized to be appropriated for 
the Space Shuttle, $2,922,800,000 for FY 1998, $3,059,000,000 
for FY 1999, and $3,150,700,000 for FY 2000. Finally in 
subsection (a), there would be authorized to be appropriated 
for Payload and Utilization Operations, $205,400,000 for FY 
1998, $182,000,000 for FY 1999, and $187,500,000 for FY 2000. 
Subsection (b) of this section would authorize only $1.5 
billion of the $2.328 billion to be made available for the 
International Space Station prior to March 31, 1998.
  The total level of funding authorized for the International 
Space Station for FY 1998 is $207,000,000 above the President's 
request, and also includes an additional $50,000,000 above the 
President's request for Russian Program Assurance, for 
completion of step one of the Interim Control Module. These 
funding levels reflect FY 1998 appropriations (P.L. 105-65). 
This level of authorization is consistent with NASA's request 
at the hearing on the International Space Station, on September 
18, 1997. The additional funding for FY 1998 reflects the 
Committee's recognition of the program's importance to the 
future of the Nation's human space flight program as well as 
the potential of the program to generate breakthrough 
scientific and technological discoveries.
  The Committee notes, however, two developments this year that 
require careful oversight: (1) cost, schedule, and safety 
issues relating to Russia's participation in the program; and 
(2) the accuracy and dependability of total costs and schedule, 
as a result of the additional cost overruns that NASA and the 
prime contractor recently revealed.
  With the first element launch of the International Space 
Station scheduled for June 1998, the Committee remains 
optimistic about the program. The Committee will closely 
monitor the progress of the International Space Station 
including revised costs and schedules as they emerge over the 
next several months to ensure that it does not jeopardize 
NASA's other missions and programs. The Committee expects to be 
notified immediately about cost revisions and schedule 
slippages.

                             Space Shuttle

  At NASA's request, the level of funding authorized for the 
Space Station is $55,000,000 below the FY 1998 budget request 
because of a reallocation of funds to the International Space 
Station. This funding level should enable NASA to maintain 
Shuttle performance without compromising safety. Over the next 
several years, America will rely on the Shuttle as never before 
because of construction of the International Space Station. 
Between 1998 and the year 2003, the Shuttle is scheduled to fly 
many missions to deliver parts and supplies to the 
International Space Station. At the same time, the Shuttle 
program is facing intense pressure from Congress and the 
Administration to cut costs. While the Committee supports 
efforts to cut costs, safety must always be a top priority. As 
NASA reduces personnel to reduce costs, it must guard against 
taking any shortcuts that would place our astronaut crews at 
risk.

Section 102. Science, Aeronautics, and Technology.

  This section would authorize a total of $5,680,000,000 for FY 
1998, $5,457,400,000 for FY 1999, and $5,794,800,000 for FY 
2000 for Science, Aeronautics, and Technology. The programs 
funded in this section include: (1) Space Science; (2) Life and 
Microgravity Sciences and Applications; (3) Mission to Planet 
Earth; (4) Aeronautical Research and Technology; (5) Advanced 
Space Transportation Technology; (6) Mission Communications 
Services; and (7) Academic Programs.
  There would be authorized to be appropriated for Space 
Science, $2,033,800,000 for FY 1998, $2,058,400,000 for FY 
1999, and $2,207,400,000 for FY 2000. The level of funding 
authorized in the section assumes support for the New 
Millennium spacecraft program. This program is intended to 
reduce the size and development times of scientific 
spacecrafts, while increasing their capabilities.
  There would be authorized to be appropriated for Life and 
Microgravity Sciences and Applications, $214,200,000 for FY 
1998, $242,000,000 for FY 1999, and $257,000,000 for FY 2000. 
For each of the fiscal years 1998, 1999, and 2000, $2 million 
has been authorized to be appropriated for research and an 
early detection system for breast and ovarian cancer and other 
women's health related issues.
  For Mission to Planet Earth, there would be authorized to be 
appropriated $1,417,300,000 for FY 1998, $1,372,000,000 for FY 
1999, and $1,492,000,000 for FY 2000. The Committee strongly 
supports this activity. Mission to Planet Earth is a satellite 
program aimed at understanding and predicting global climate 
change by studying how the atmosphere, land, seas, and ice caps 
interact as a system. It is NASA's main contribution to the 
U.S. Global Change Research Program and international climate 
change research programs. The bill assumes continued support 
for each of the program's components, including the Earth 
Observing System (EOS), the EOS Data and Information System 
(EOSDIS), Landsat, and Earth Probes.
  For Aeronautical Research and Technology, there would be 
authorized to be appropriated $920,100,000 for FY 1998, 
$786,000,000 for FY 1999, and no amount has been specified for 
FY 2000. The authorization level provides full funding for all 
of the main aeronautics programs, including NASA's subsonic, 
supersonic, and hypersonic research programs. In addition, 
$100,000,000 is authorized for FY 1998, FY 1999 and FY 2000 to 
provide for NASA's commitment announced in January 1997 to an 
Aviation Safety Program, a cooperative program with the 
Department of Defense, the Federal Aviation Administration and 
private industry.
  For Advanced Space Transportation Technology, there would be 
authorized to be appropriated $417,100,000 for FY 1998 and 
$388,600,000 for FY 1999, but no amount has been specified for 
FY 2000.
  For Mission Communications Services, there would be 
authorized to be appropriated $400,800,000 for FY 1998, 
$380,000,000 for FY 1999, and $391,400,000 for FY 2000.
  Finally, for Academic Programs, there would be authorized to 
be appropriated $130,000,000 for FY 1998, $100,000,000 for FY 
1999, and $103,000,000 for FY 2000. The level of funding 
authorized for FY 1998 is $33,600,000 above the President's 
budget request, thus restoring this program to previous 
historic levels. The Committee provides the additional funding 
to address the following areas: (1) concern for enhanced 
support to the nation's K-12 educational system; (2) 
recognition of the contributions of Historically Black Colleges 
and Universities and other minority-serving institutions (such 
as Hispanic-serving institutions and Tribally-controlled 
Community Colleges) to the preparation of scientists and 
engineers for this country; and (3) support for the 
Experimental Program to Stimulate Competitive Research 
(EPSCoR). This Academic Programs authorization includes the 
$10,000,000 that section 116 mandates for the existing EPSCoR 
program which funds space research in rural states. The 
Committee commends NASA's EPSCoR on its vital funding support 
for quality space science research at rural academic 
institutions and encourages the agency to form cooperative 
relationships between EPSCoR and NASA's space science programs 
to further enhance the competitiveness of those institutions.
  The Committee, disappointed about the reduction in education 
programs reflected in both the FY 1998 and FY 1999 budget 
requests, directs NASA to use any additional funds to enhance 
K-12 education efforts, especially in: (1) student support 
programs such as the Summer High School Apprenticeship Research 
Program (SHARP and SHARP-PLUS), and the Space Science Student 
Involvement Program (SSIP); (2) teacher preparation and 
enhancement activities such as the in-service programs offered 
by the NASA Education Workshops for Elementary School Teachers 
(NEWEST), NASA Education Workshops for Math, Science and 
Technology Teachers (NEWMAST), and the Urban Community 
Enrichment Program (UCEP); and (3) educational technology, 
particularly related to distance learning that can serve rural 
communities.

Section 103. Mission Support.

  This section would authorize a total of $2,433,200,000 for FY 
1998, $2,476,600,000 for FY 1999, and $2,415,600,000 for FY 
2000 for Mission Support. Specifically in this section, there 
would be authorized to be appropriated for Safety, Reliability, 
and Quality Assurance, $37,800,000 for FY 1998, $35,600,000 for 
FY 1999, and $35,600,000 for FY 2000. For Space Communications 
Services, there would be authorized to be appropriated 
$209,200,000 for FY 1998, $177,000,000 for FY 1999, and 
$136,000,000 for FY 2000. For Research and Program Management, 
there would be authorized to be appropriated $2,051,800,000 for 
FY 1998, $2,099,000,000 for FY 1999, and $2,079,000,000 for FY 
2000. Finally for Construction of Facilities, there would be 
authorized to be appropriated $134,400,000 for FY 1998, 
$165,000,000 for FY 1999, and $165,000,000 for FY 2000.
  This section would reduce the funding level for this account 
by $80,000,000 from the President's FY 1998 request with that 
funding having been reallocated to the Human Space Flight 
Account for the International Space Station and Russian Program 
Assurance activities as NASA requested.

Section 104. Inspector General.

  This section authorizes the requested $18,300,000 for NASA's 
OIG and provides $20,000,000 for both FY 1999 and FY 2000 
authority.

             Subtitle B--Limitations and Special Authority

Section 111. Use of Funds for Construction.

  This section would authorize NASA to use funds appropriated 
for purposes other than Construction of Facilities, Research 
and Program Management (excluding research operations support), 
and the OIG for the construction of new facilities and 
modifications to existing facilities, provided that no funds 
used under this section may be spent for a project whose 
estimated cost exceeds $1,000,000 until 30 days have passed 
after notice has been given to the Senate Commerce, Science, 
and Transportation and House Science Committees of the nature, 
location, and estimated cost of the project. Subsection (c) of 
this section would require that the title of any research 
facility to an institution of higher education or to a non-
profit acquired or constructed through use of those funds would 
be vested with the federal government unless the Administrator 
determines otherwise.

Section 112. Availability of Appropriated Amounts.

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

Section 113. Reprogramming for Construction of Facilities.

  This section would authorize the reprogramming of funds 
appropriated for construction of facilities for the 
construction, expansion, or modification of facilities at any 
location should the Administrator determine the reprogramming 
was dictated by new developments in aeronautics and space 
activities, and deferral of such action until the next 
authorization Act would be inconsistent with the national 
interest in aeronautics and space activities. Any action taken 
by the Administrator would require 30 days' notice being given 
to the Senate Commerce, Science, and Transportation and House 
Science Committees.

Section 114. Consideration by Committees.

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

Section 115. Use of Funds for Scientific Consultations or Extraordinary 
        Expenses.

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

Section 116. Experimental Program to Stimulate Competitive Research.

  This section would provide $10,000,000 for the Experimental 
Program to Stimulate Competitive Research for each of FY 1998, 
FY 1999, and FY 2000.

                 Title II--International Space Station

Section 201. Findings.

  This section highlights 3 findings relating specifically to 
the International Space Station: (1) the development and 
operation of the International Space Station is in the best 
interest of the U.S.; (2) commercial providers may have a role, 
as yet unspecified, which may lower costs and increase benefits 
to all partners in the program; and (3) the U.S. should commit 
to completing the program.

Section 202. Commercialization of Space Station.

  This section would require the Administrator to submit a 
report to the Senate Commerce Committee and the House Science 
Committee on the opportunities for commercial providers to play 
a role in the International Space Station. The study would 
identify and examine the following: (1) opportunities that may 
include operation, use, servicing, and augmentation; (2) 
potential cost savings; (3) those activities to which the 
federal government has a unique or more cost-effective role; 
(4) policies and initiatives to advance and facilitate the 
involvement of commercial providers; (5) actions, if any, the 
Administrator plans to take in FY 1998, 1999, and 2000; and (6) 
revenues and cost reimbursements from commercial use.
  This section also would require the Administrator to provide 
for an independently-conducted market survey to evaluate and 
examine potential industry interest in providing commercial 
goods and services. It is anticipated that NASA would work with 
the Department of Commerce's Office of Air and Space 
Commercialization in completing this effort. The Administrator 
would be required to submit the findings of the study to the 
Senate Commerce Committee and the House Science Committee 
within 180 days of enactment of this bill.

Section 203. International Space Station Limitations.

  This section would place limitations on the transfer of funds 
to Russia and would provide for a contingency plan in the event 
Russia cannot meet its commitment to the International Space 
Station. Subsection (a) of this section would prohibit any 
funds or in-kind payments from being transferred to Russia for 
work on the International Space Station that Russia has pledged 
to provide at its own expense, excluding the Russian built, US 
owned Functional Cargo Block. Subsection (b) would require the 
Administrator to develop and submit to Congress a contingency 
plan for replacement of any element Russia is responsible for 
providing.
  While the Committee believes that Russia should be given the 
opportunity to uphold its commitments to the program, those 
efforts to keep Russia in the program should not interfere with 
the best interests of developing, launching, and completing 
construction of the International Space Station in a cost-
effective, reliable and safe manner by 2003. Consequently, 
subsection (b) would direct the Administrator to prepare a 
detailed contingency plan for the removal or replacement of 
each element of the International Space Station for which 
Russia is responsible that lies within the critical path of the 
Space Station.

Section 204. National Research Council Study.

  This section would require the Administrator to enter into a 
contract with the National Research Council of the National 
Academy of Sciences for a study evaluating the engineering 
challenges posed by both extravehicular and space launch 
requirements of the United States and other foreign countries, 
the potential need to upgrade or replace equipment or 
components (including associated launch needs), and the 
decommissioning and disassembly requirements of the 
International Space Station. An interim report would be due 
June 1, 1998, with a final report due September 1, 1998.

Section 205. Cost Limitation for the International Space Station.

  Cost limitations of $21.9 billion and $17.7 billion have been 
set for the development of the International Space Station and 
the associated Shuttle launch costs, respectively. These 
limitations are to include all costs from the start of the 
International Space Station in 1994 through the point of 
assembly complete, currently scheduled for December 2003, 
including those funds provided as ``Russian Program 
Assurances''. The limitation on funding is not to include those 
operations and research costs that are expected to start in the 
fiscal year 2003 after assembly of the International Space 
Station is completed. The Shuttle launch costs within the $17.7 
billion limitation are considered to be those launches in 
connection with the assembly of the International Space Station 
including the 7 research utilization flights currently 
scheduled for the Station, the 9 flights in Phase I to the 
Russian space station, and the flight associated with the 
testing of the crew return vehicle. These limitations have been 
set to motivate efficiency and fiscal responsibility and 
provide assurances to international partners of the 
International Space Station of the commitment of the United 
States Government. It is noted that any cost savings achieved 
on the Shuttle launch costs during assembly may be used for 
additional Shuttle flights as long as those flights are in 
support of the Space Station assembly.
  Subsections (b) and (e) provide flexibility for the proposed 
limitation on funding. Subsection (b) would provide for 
automatic increases for such impacts on costs as: economic 
inflation; compliance with changes in or new Federal, state, or 
local laws; and any lack of performance or termination of 
participation of any of the international partners involved in 
the space station program. The inflation provision would allow 
for any inflation beyond the annual 3 percent currently assumed 
in the out year projections.
  In the event the cost limitation for either the International 
Space Station or the associated shuttle launch costs need to be 
exceeded due to the provisions identified in subsection (b), 
the Administrator of NASA would be required to provide to the 
appropriate authorizing and appropriating Committees of the 
House and Senate the following information: (1) an explanation 
of the basis for the change; (2) an impact analysis of not 
receiving the requested funds; and (3) a cost estimate 
certified by the Administrator of NASA. The Administrator would 
be required to include in the explanation an identification of 
which exemptions are the basis for the requested change. An 
impact analysis would indicate the impact to the program in 
terms of specific schedule changes if funds are not received, 
and an overall cost increase certification. The certified cost 
estimate would be the revised estimate of the total life cycle 
costs. The Administrator should consider the total life cycle 
when revising the cost estimate to address concerns that 
although development costs may be reduced, subsequent costs 
such as operations and decommissioning may not be reduced but 
rather may be increased.
  Subsection (d) would require the Administrator, as part of 
each annual budget request, to identify the costs of the 
Shuttle launches used to support the assembly of the 
International Space Station. Compliance with subsection (d) 
would ensure that the amount of funding that applies toward the 
cost limitation is clear and accurate.
  Subsection (e) would allow for the incorporation of new 
technologies that would improve safety, reliability, 
maintainability, and availability, or reduce cost after 
assembly is complete. Included in the availability are 
allowances for additional Shuttle flights due to on-orbit 
assembly sequence problems. These problems are contingency 
responses to on-orbit failures, and/or design improvements and 
associated Shuttle or ground testing to reduce risks of 
additional on-orbit failures based on incurred on-orbit 
problems. Any of the technology exceptions to the cost 
limitations must include a cost-benefit analysis based on total 
life cycle costs as part of the written notification required 
under subsection (c).
  The Administrator should, as part of the President's budget 
request, disclose on an annual basis the amount of funding 
spent against the cost limitation and the remaining amount 
available for both the development costs and the Shuttle launch 
costs.

                  Title III--Miscellaneous Provisions

Section 301. National Aeronautics and Space Act of 1958 Amendments.

  Section 301 amends the National Aeronautics and Space Act of 
1958 (42 U.S.C. 2451) to require the President to submit to 
Congress the annual aeronautics and space report in May, rather 
than January, and in the report to address activities carried 
out by government agencies on a fiscal year basis, rather than 
a calendar year basis.
  Subsection (c) of this section would clarify section 509 of 
NASA's 1993 Authorization Act (PL. 102-588) which amended 
section 303 of the Space Act by including a provision which 
would authorize the Administrator to protect information 
generated under an agreement entered into under section 
203(c)(5) and (c)(6) of the Space Act. Specifically, the 
Administrator is authorized to delay the unrestricted public 
disclosure of technical data in the following circumstances: 
(1) information which would be considered a trade secret; (2) 
commercial or financial information which would be privileged 
or confidential as defined by section 552(b)(4) of title 5, 
U.S.C.; (3) information which had been obtained from a non-
Federal party participating in such an agreement; and (4) 
information generated in the performance of experimental, 
developmental, or research activities in which the 
Administration participates. This provision would protect the 
data covered by this subsection from disclosure in response to 
a request submitted under the Freedom of Information Act 
(FOIA), title 5, U.S.C.
  This amendment to the Space Act authorizes NASA to withhold 
certain technical data which would have been trade secret or 
commercial or financial information within the meaning of 
section 552(b)(4) of title 5, U.S.C., the Freedom of 
Information Act, if the technical data has been obtained from a 
non-Federal party. This section permits the Agency to withhold 
technical data whenever it is generated in the performance of 
experimental, developmental, or research activities or programs 
conducted by, or funded in whole or in part by, the 
Administration.

Section 302. Acquisition of Space Science Data.

  This section would allow the Administrator, if practicable 
and cost-effective, to purchase space science data from 
commercial providers. Subsection (b) would define space science 
data as including elemental and mineralogical resources of the 
moon, asteroids, planets, and other moons, and comets as well 
as earth environmental data and solar storm monitoring. 
Subsection (c) would reinforce the policy that the federal 
government would require compliance with applicable safety 
standards.

Section 303. Acquisition of Earth Science Data.

  This section of the bill would authorize the Administrator to 
purchase commercial Earth science data to meet the requirements 
of Mission to Planet Earth when the purchase of such data is 
practicable and cost effective and satisfies scientific 
requirements. The purchase of data may not exceed an aggregate 
amount of $50,000,000.

Section 304. Shuttle Privatization.

  This section would require the Administrator to submit a 
report to the Senate Committee on Commerce, Science, and 
Transportation and the Committee on Science of the House of 
Representatives on the feasibility of privatizing the Space 
Shuttle. Specifically, the Administrator would include in the 
report the findings and recommendations of its own independent 
review team (the Kraft Commission), and possible options for 
resolving the main policy and legal issues that currently 
prevent full privatization including the safety, certification 
and other procedures for handling commercial requests which 
require the use of non-governmental payload specialists and/or 
pilots from occurring. Such policy and legal issues include: 
(1) who should own the Shuttle orbiters and Shuttle ground 
facilities; (2) what payloads should be allowed to be launched 
or prohibited; (3) which Shuttle functions should continue to 
be performed by the federal government; and (4) what the 
estimated cost savings would be. The Committee notes the 
success to this point of the operation of the Space Shuttle by 
a single prime contractor and commends NASA on its placement of 
the program under one prime contractor as a transitional step 
toward the ultimate goal of full privatization.

Section 305. Launch Voucher Demonstration Program Amendments.

  The section would amend section 504 of the Fiscal Year 1993 
NASA Act (PL. 102-588) to strike outdated references to various 
dates and offices.

Section 306. Use of Existing Facilities.

  This section would require the Administrator, whenever 
feasible, to select excess or underutilized buildings, grounds, 
and facilities from closed military installations or any other 
agency when considering the purchase, lease, or expansion of a 
NASA facility.
  Subsection (c) of this section would provide NASA the 
authority to identify and make available to industry 
underutilized infrastructure at Stennis Space Center that could 
be used in launch vehicle development activities. The Senate 
Committee on Commerce, Science, and Transportation and the 
Committee on Science of the House of Representatives would be 
notified should NASA's existing authority be insufficient.

Section 307. Authority to Reduce or Suspend Contract Payments Based on 
        Substantial Evidence of Fraud.

  This section would amend 10 USC 2307(h)(8) which currently 
allows the Department of Defense, the Department of the Army, 
the Department of the Navy, and the Department of the Air Force 
to suspend or reduce contract payments when there is 
substantial evidence that the request of a contractor for 
advance, partial, or progress payment under a contract awarded 
by that agency is based on fraud to add NASA to the list of 
agencies that can use this authority.

Section 308. Next Generation Internet.

  This section would authorize the Administrator to participate 
to the maximum extent possible in the Next Generation Internet 
initiative which is a part of the High Performance Computing 
and Communications multi-agency effort.

Section 309. Notice.

  This section would require the Administrator to provide 
notice to the Senate Committee on Commerce, Science, and 
Transportation and the Committee on Science of the House of 
Representatives on reprogramming and re-organization matters. 
Subsection (a) of this section would require that any 
reprogramming notice be provided to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Science of the House of Representatives. Subsection (b) of this 
section would require the Administrator to notify the 
Committees on Commerce, Science and Transportation and 
Appropriations of the Senate and the Committees on Science and 
Appropriations of the House of Representatives of any program, 
project, or activity which is preparing to undergo any major 
reorganization no later than 30 days prior to such 
reorganization. A major reorganization is determined as the 
reassignment of more than 25 percent employees of any program, 
project, or activity.

Section 310. Sense of the Congress on the Year 2000 Problem.

  This section expresses the sense of the Congress that the 
NASA Administrator should give high priority to correcting the 
year 2000 problem in all of its computer systems to ensure 
effective operation in the year 2000 and beyond. NASA needs to 
assess the risk of the problem upon its systems and develop a 
plan and a budget to correct the problem for its mission-
critical programs. NASA also needs to consider contingency 
plans, in the event that certain systems are unable to be 
corrected in time.

Section 311. Unitary Wind Tunnel Plan Act of 1949 Amendments.

  This section would amend the Unitary Wind Tunnel Plan Act to 
update technological terminology, including the terms 
``transonic, supersonic, and hypersonic'', based on 
technological progress made over the ensuing decades.

Section 312. Enhancement of Science and Mathematics Programs.

  This section expresses the Sense of the Congress that the 
Administrator should, whenever practicable, donate 
educationally useful Federal equipment to schools that may be 
used to enhance the science and mathematics programs of those 
schools. Public schools may be defined as a public or private 
educational institution that serves any of the grades of 
kindergarten through grade 12. The Administrator would be 
required to submit a report of such donations as part of the 
President's annual budget request.

Section 313. Authority to Vest Title.

  This section would provide the Administrator with the 
authority to vest title to personal property in institutions of 
higher education or in non-profit organizations that enter into 
cooperative agreements with the Administration. This authority 
would allow NASA to reduce the total funding necessary to 
support cooperative agreements by allowing recipients to retain 
title to property acquired in the course of performance. The 
vesting of any title in the participant would be conducted on 
the U.S. government not incurring any further obligations as 
well as many other conditions the Administrator considers 
appropriate.

Section 314. NASA Mid-Range Procurement Test Program.

  This section would amend section 5062 of the Federal 
Acquisition Streamlining Act (FASA).
  Section 5062 of the FASA of 1994 granted NASA the authority 
to initiate a test under the Office of Federal Procurement 
Policy of alternative notice and publication requirements. In 
response to this legislation, NASA began to announce upcoming 
procurement on the Internet, rather than publish synopses in 
the Commerce Business Daily. The FASA included the following 
limitations on the test: (1) the test conducted only applies to 
acquisitions with an estimated annual total obligation of funds 
of $500,000 or less; (2) the total life cycle cost of the test 
could not exceed $100,000,000; and (3) the test would expire 
four years after the date of enactment of FASA.
  This section eliminates the annual total cost limit and makes 
the tests applicable to acquisitions with a basic value of 
$2,000,000 or less (not more than $10,000,000 with option). In 
addition, it increases the dollar limitation applicable to the 
Test Program from $100,000,000 to $500,000,000, and extends the 
period during which an agency is authorized to use the test for 
an additional two years.
  NASA's success in implementing the Test Program agency-wide 
has resulted in its reaching the statutory limits. By raising 
the Test's funding ceiling, this provision would allow NASA to 
fully realize the Test's total impact. The provision would also 
allow an additional two years to test these new business 
concepts because initially only a small number of businesses 
had Internet access and many businesses have only recently 
begun to incorporate Internet applications into their 
operations. The extended test period would provide a more 
populated base upon which to conduct the Test.
  The Committee requests that the NASA Administrator submit to 
the Senate Committee on Commerce, Science and Transportation 
and the Committee on Science of the House of Representatives 
one year after enactment of this bill a report addressing the 
impact these changes in the provision have had on NASA and on 
its providers.

Section 315. Space Advertising.

  This section would prohibit the launch of any payload 
containing any material to be used for the purposes of 
obtrusive space advertising. This section would not apply to 
nonobtrusive commercial space advertising including advertising 
on commercial space transportation vehicles, space 
infrastructure, payloads, space launch facilities, and launch 
support facilities. Subsection (c) of this section expresses as 
the Sense of the Congress that the President should negotiate 
with foreign launching nations agreements prohibiting the use 
of outer space for obtrusive space advertising purposes.

Section 316. Administration of Commercial Space Centers.

  This section would require the Administrator to administer 
the Commercial Space Centers (CSCs) in a coordinated manner 
from NASA's headquarters in Washington, D.C., stabilizing NASA 
investments and providing better management of commercial 
research activities. Centralized administration of the CSCs 
should help stabilize investments and provide for enhanced 
collaboration which should improve the management of commercial 
research activities.

Section 317. Insurance; Indemnification; Liability.

  This section would authorize the Administrator to provide 
liability insurance for, or indemnification to, the developer 
of an experimental aerospace vehicle developed or used in 
execution of an agreement between the Administration and the 
developer that was in effect before the date of enactment of 
this legislation. Accordingly, this section is intended only to 
apply to NASA's current X-33 and X-34 programs. The primary 
purpose of this section is to provide these developers with 
government indemnification for catastrophic third-party loss 
above the amount of required insurance, while minimizing the 
likelihood of such accidents occurring by formally requiring 
NASA to conduct safety oversight of the launch vehicles flown 
under these programs.
  While not amending the National Aeronautics and Space Act of 
1958, this section would incorporate section 308 of the Space 
Act except where otherwise provided. Specifically, except where 
otherwise provided, a developer, as defined in this section, 
would be entitled to insurance and indemnification on the same 
terms and conditions as provided by NASA pursuant to section 
308. Paragraph (2) would require the developer to obtain 
liability insurance or demonstrate financial responsibility in 
amounts to compensate for the maximum probable loss for claims 
by a third party and by the U.S. government. The Administrator 
would be required to determine the amount of insurance based on 
the requirements set forth in section 70112(a)(3) of title 49, 
U.S.C., except that the Administrator is authorized to increase 
the amount after consultation with the Comptroller General and 
other experts as may be appropriate, and only after publishing 
a notice of the increase in the Federal Register 180 days prior 
to the increase going into effect. Finally, paragraph (2) would 
prohibit the Administrator from providing liability insurance 
or indemnification unless the Administrator is satisfied that 
all appropriate safety procedures and practices are being 
followed.
  Also, in order to receive liability insurance or 
indemnification under this section, a developer must enter into 
a cross-waiver agreement. The reciprocal waiver agreement 
required under this section would not do the following: (1) 
preclude any natural person (or their representatives) who is 
not a party to the waiver agreement from filing any claims or 
recovering any damages; (2) absolve any party of liability to 
any natural person that is not a party to the waiver; and (3) 
be used as a basis of a claim by the Administration or the 
developer for indemnification against the other for any damages 
paid to the natural person (or their representatives) as a 
result of claims filed by, or on behalf of, such natural person 
for injury or death sustained as a result of activities 
connected to the agreement or use of the experimental vehicle.
  Subsection (d) defines those terms used throughout this 
section of the bill.
  Subsection (e) would establish the relationship between this 
provision and other laws. Specifically, this section does not 
apply to those activities to which 42 U.S.C. 2458b and 49 
U.S.C. 70117(g)(1) apply.
  Subsection (f) would terminate the provisions of the section 
on December 31, 2002 although the Administrator may extend the 
termination date for no more than three additional years if the 
extension is needed to cover the operation of an experimental 
vehicle covered by this section. This subsection also would 
provide that the termination of the authority granted in this 
section would not terminate the existing agreements that 
resulted from this authority.

                        Changes in Existing Law

  In the opinion of the Committee, it is necessary to dispense 
with the requirements of paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate in order to expedite the business 
of the Senate.

                                
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