[House Report 115-649]
[From the U.S. Government Publishing Office]


115th Congress    }                                           {    Report
                          HOUSE OF REPRESENTATIVES
 2d Session       }                                           {   115-649

======================================================================



 
          AMERICAN SPACE COMMERCE FREE ENTERPRISE ACT OF 2017

                                _______
                                

 April 24, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

     Mr. Smith of Texas, from the Committee on Science, Space, and 
                  Technology, submitted the following

                              R E P O R T

                        [To accompany H.R. 2809]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science, Space, and Technology, to whom 
was referred the bill (H.R. 2809) to amend title 51, United 
States Code, to provide for the authorization and supervision 
of nongovernmental space activities, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

                                CONTENTS

Committee Statement and Views....................................    19
Section-by-Section...............................................    39
Explanation of Amendments........................................    43
Committee Consideration..........................................    43
Application of Law to the Legislative Branch.....................    43
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    43
Statement of General Performance Goals and Objectives............    44
Duplication of Federal Programs..................................    44
Disclosure of Directed Rule Makings..............................    44
Federal Advisory Committee Act...................................    44
Unfunded Mandate Statement.......................................    44
Earmark Identification...........................................    44
Committee Estimate...............................................    45
Budget Authority and Congressional Budget Office Cost Estimate...    45
Changes in Existing Law Made by the Bill as Reported.............    46

    The amendment is as follows:
  Strike all after the enacting clause and insert the part 
printed in italic:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``American Space 
Commerce Free Enterprise Act of 2017''.
  (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; policy; purposes.
Sec. 3. Certification to operate space objects.
Sec. 4. Permitting of space-based remote sensing systems.
Sec. 5. Administrative provisions related to certification and 
permitting.
Sec. 6. Technical and conforming amendments.
Sec. 7. Office of Space Commerce.
Sec. 8. Restriction on preventing launches and reentries of certified 
space objects.
Sec. 9. Report on registration of space objects.
Sec. 10. Comptroller General report.

SEC. 2. FINDINGS; POLICY; PURPOSES.

  (a) Findings.--Congress finds the following:
          (1) The United States, through existing authorization and 
        supervision mechanisms, satisfies and is in conformity with its 
        obligation under the Outer Space Treaty to authorize and 
        supervise nongovernmental space activities to assure such 
        activities are carried out in conformity with the international 
        obligations of the United States under the Outer Space Treaty.
          (2) The United States has a robust and innovative private 
        sector that is investing in, developing, and placing into outer 
        space, spacecraft and payloads.
          (3) Authorization and supervision mechanisms as of the date 
        of enactment of this Act could be improved to relieve 
        administrative burdens on new and innovative nongovernmental 
        space actors.
          (4) It serves the national interest to address misperceptions 
        of legal uncertainty through the establishment of a general 
        authorization and supervision certification authority for 
        nongovernmental outer space activities.
          (5) The private exploration and use of outer space by 
        nongovernmental entities will further the national security, 
        foreign policy, and economic interests of the United States.
  (b) Policy.--It is the policy of the United States that--
          (1) United States citizens and entities are free to explore 
        and use space, including the utilization of outer space and 
        resources contained therein, without conditions or limitations;
          (2) this freedom is only to be limited when necessary to 
        assure United States national security interests are met and to 
        authorize and supervise nongovernmental space activities to 
        assure such activities are carried out in conformity with the 
        international obligations of the United States under the Outer 
        Space Treaty;
          (3) to the maximum extent practicable, the Federal Government 
        shall interpret and fulfill its international obligations to 
        minimize regulations and limitations on the freedom of United 
        States nongovernmental entities to explore and use space;
          (4) to the maximum extent practicable, the Federal Government 
        shall take steps to protect the physical safety of space 
        objects operated by the United States that do not involve 
        limitations on the freedoms of nongovernmental entities of the 
        United States; and
          (5) nongovernmental activities in outer space shall only be 
        authorized and supervised in a transparent, timely, and 
        predictable manner, with minimal costs and burdens placed on 
        the entities authorized and supervised.
  (c) Purposes.--The purposes of this Act and the amendments made by 
this Act are--
          (1) to enhance the existing outer space authorization and 
        supervision framework to provide greater transparency, greater 
        efficiency, and less administrative burden for nongovernmental 
        entities of the United States seeking to conduct space 
        activities; and
          (2) to ensure that the United States remains the world leader 
        in commercial space activities.
  (d) Definitions.--In this Act--
          (1) the term ``Agreement on the Rescue of Astronauts and the 
        Return of Space Objects'' means the Agreement on the Rescue of 
        Astronauts, the Return of Astronauts and the Return of Objects 
        Launched into Outer Space (signed at Washington, Moscow, and 
        London on April 22, 1968, ratified by the United States on 
        December 3, 1968; 19 UST 7570);
          (2) the term ``Convention on Registration of Space Objects'' 
        means the Convention on Registration of Objects Launched into 
        Outer Space (signed at New York on January 14, 1975, ratified 
        by the United States on September 15, 1976; 28 UST 695);
          (3) the term ``covered treaties on outer space'' means--
                  (A) the Outer Space Treaty;
                  (B) the Agreement on the Rescue of Astronauts and the 
                Return of Space Objects;
                  (C) the Convention on Registration of Space Objects; 
                and
                  (D) the Liability Convention;
          (4) the term ``Liability Convention'' means the Convention on 
        the International Liability for Damage Caused by Space Objects 
        (signed at Washington, Moscow, and London on March 29, 1972, 
        ratified by the United States on October 9, 1973; 24 UST 2389); 
        and
          (5) the term ``Outer Space Treaty'' means the Treaty on 
        Principles Governing the Activities of States in the 
        Exploration and Use of Outer Space, including the Moon and 
        Other Celestial Bodies (signed at Washington, Moscow, and 
        London on January 27, 1967, ratified by the United States on 
        October 10, 1967; 18 UST 2410).

SEC. 3. CERTIFICATION TO OPERATE SPACE OBJECTS.

  Title 51, United States Code, is amended by adding at the end the 
following:

``Subtitle VIII--Authorization and Supervision of Nongovernmental Space 
                               Activities

         ``CHAPTER 801--CERTIFICATION TO OPERATE SPACE OBJECTS

``Sec.
``80101. Definitions.
``80102. Certification authority.
``80103. Certification application and requirements.
``80104. Mitigation of space debris.
``80105. Continuing certification requirements.
``80106. Certification transfer.
``80107. Certification expiration and termination.
``80108. Existing license or pending application for launch or reentry.
``80109. Private Space Activity Advisory Committee.
``80110. Exemptions.
``80111. Protecting the interests of United States entity space 
objects.

``Sec. 80101. Definitions

  ``In this subtitle:
          ``(1) Agency.--The term `agency' has the meaning given the 
        term Executive agency in section 105 of title 5.
          ``(2) Agreement on the rescue of astronauts and the return of 
        space objects.--The term `Agreement on the Rescue of Astronauts 
        and the Return of Space Objects' means the Agreement on the 
        Rescue of Astronauts, the Return of Astronauts and the Return 
        of Objects Launched into Outer Space (signed at Washington, 
        Moscow, and London on April 22, 1968, ratified by the United 
        States on December 3, 1968; 19 UST 7570).
          ``(3) Convention on registration of space objects.--The term 
        `Convention on Registration of Space Objects' means the 
        Convention on Registration of Objects Launched into Outer Space 
        (signed at New York on January 14, 1975, ratified by the United 
        States on September 15, 1976; 28 UST 695).
          ``(4) Covered treaties on outer space.--The term `covered 
        treaties on outer space' means--
                  ``(A) the Outer Space Treaty;
                  ``(B) the Agreement on the Rescue of Astronauts and 
                the Return of Space Objects;
                  ``(C) the Convention on Registration of Space 
                Objects; and
                  ``(D) the Liability Convention.
          ``(5) Liability convention.--The term `Liability Convention' 
        means the Convention on the International Liability for Damage 
        Caused by Space Objects (signed at Washington, Moscow, and 
        London on March 29, 1972, ratified by the United States on 
        October 9, 1973; 24 UST 2389).
          ``(6) National of the united states.--The term `national of 
        the United States' has the meaning given such term in section 
        101(a) of the Immigration and Nationality Act (8 U.S.C. 
        1101(a)).
          ``(7) Outer space treaty.--The term `Outer Space Treaty' 
        means the Treaty on Principles Governing the Activities of 
        States in the Exploration and Use of Outer Space, including the 
        Moon and Other Celestial Bodies (signed at Washington, Moscow, 
        and London on January 27, 1967, ratified by the United States 
        on October 10, 1967; 18 UST 2410).
          ``(8) Secretary.--The term `Secretary' means, except as 
        otherwise provided in this subtitle, the Secretary of Commerce, 
        acting through the Office of Space Commerce.
          ``(9) Space-based remote sensing system.--The term `space-
        based remote sensing system' means a space object in Earth 
        orbit that is--
                  ``(A) designed to image the Earth; or
                  ``(B) capable of imaging a space object in Earth 
                orbit operated by the Federal Government.
          ``(10) Space debris mitigation.--The term `space debris 
        mitigation' means efforts to--
                  ``(A) prevent on-orbit break-ups;
                  ``(B) remove spacecraft that have reached the end of 
                their mission operation from useful densely populated 
                orbit regions; and
                  ``(C) limit the amount of debris released during 
                normal operations of a space object.
          ``(11) Space object.--
                  ``(A) In general.--The term `space object' means--
                          ``(i) a human-made object located in outer 
                        space, including on the Moon and other 
                        celestial bodies, with or without human 
                        occupants, that was launched from Earth, such 
                        as a satellite or a spacecraft, including 
                        component parts of the object; and
                          ``(ii) all items carried on such object that 
                        are intended for use in outer space outside of, 
                        and independent of, the operation of such 
                        object.
                  ``(B) Inclusion.--Such term includes any human-made 
                object that is--
                          ``(i) manufactured or assembled in outer 
                        space; and
                          ``(ii) intended for operations in outer space 
                        outside of, and independent of, the operations 
                        of such object in which the manufacturing or 
                        assembly occurred.
                  ``(C) Exclusions.--Such term does not include--
                          ``(i) an article on board a space object that 
                        is only intended for use inside the space 
                        object;
                          ``(ii) an article manufactured or processed 
                        in outer space that is a material; or
                          ``(iii) an article intended for use outside 
                        of a space object as part of the certified 
                        operations of the space object.
          ``(12) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, and any other commonwealth, territory, or possession 
        of the United States.
          ``(13) United states.--The term `United States' means the 
        States, collectively.
          ``(14) United states entity.--The term `United States entity' 
        means--
                  ``(A) an individual who is a national of the United 
                States; or
                  ``(B) a nongovernmental entity organized or existing 
                under, and subject to, the laws of the United States or 
                a State.

``Sec. 80102. Certification authority

  ``(a) In General.--Not later than 1 year after the date of enactment 
of the American Space Commerce Free Enterprise Act of 2017, the 
Secretary shall begin issuing certifications for the operation of a 
space object to any United States entity who submits an application for 
a certification in satisfaction of the requirements of this chapter.
  ``(b) Consultation.--The Secretary shall, as the Secretary considers 
necessary, consult with the heads of other relevant agencies in 
carrying out the requirements of this chapter, pursuant to section 
80311.
  ``(c) Certification Required for Operation.--Beginning on the date 
that is 1 year after the date of enactment of the American Space 
Commerce Free Enterprise Act of 2017, a United States entity may not 
operate a space object unless the entity holds a certification issued 
under this chapter for the operation of such object or the entity holds 
a valid payload approval for launch or reentry under section 50904 as 
part of a license issued under chapter 509, and that satisfies the 
requirements of section 80108(a).
  ``(d) Foreign Entities Prohibited.--The Secretary may not issue a 
certification under this chapter to any person who is not a United 
States entity.
  ``(e) Coverage of Certification.--The Secretary shall, to the maximum 
extent practicable, require only 1 certification under this chapter for 
a United States entity to--
          ``(1) conduct multiple operations carried out using a single 
        space object;
          ``(2) operate multiple space objects that carry out 
        substantially similar operations; or
          ``(3) use multiple space objects to carry out a single space 
        operation.

``Sec. 80103. Certification application and requirements

  ``(a) Application Process.--
          ``(1) In general.--To be eligible for a certification or 
        transfer of a certification to operate a space object under 
        this chapter, a United States entity shall submit an 
        application to the Secretary as provided in paragraph (2). Such 
        application shall include, for each required item or 
        attestation, sufficient evidence to demonstrate each fact or 
        assertion.
          ``(2) Contents.--An application described in paragraph (1) 
        shall include only the following information, with respect to 
        each space object and the operations proposed to be certified:
                  ``(A) The name, address, and contact information of 
                one or more nationals of the United States designated 
                by the applicant as responsible for the operation of 
                the space object.
                  ``(B) An affirmation, and a document of proof, that 
                the applicant is a United States entity.
                  ``(C) If available at the time of submission of the 
                application, the planned date and location of the 
                launch of the space object, including the identity of 
                the launch provider.
                  ``(D) The general physical form and composition of 
                the space object.
                  ``(E) A description of the proposed operations of the 
                space object that includes--
                          ``(i) when and where the space object will 
                        operate; and
                          ``(ii) when and where the operation of the 
                        space object will terminate.
                  ``(F) A description of how the space object will be 
                operated and disposed of in a manner to mitigate the 
                generation of space debris.
                  ``(G) Information about third-party liability 
                insurance obtained, if any, by the applicant for 
                operations of the space object, including the amount 
                and coverage of such liability insurance.
                  ``(H) Whether the space object will include a space-
                based remote sensing system.
          ``(3) Attestations.--An application described in paragraph 
        (1) shall contain an attestation by the applicant of each the 
        following:
                  ``(A) The space object is not a nuclear weapon or a 
                weapon of mass destruction.
                  ``(B) The space object will not carry a nuclear 
                weapon or weapon of mass destruction.
                  ``(C) The space object will not be operated or used 
                for testing of any weapon on a celestial body.
                  ``(D) All information in the application and 
                supporting documents is true, complete, and accurate.
  ``(b) Review of Application.--
          ``(1) Verification of information and attestations.--Not 
        later than 90 days after receipt of an application under this 
        section, the Secretary shall verify that--
                  ``(A) the application is complete, including any 
                required supporting documents;
                  ``(B) the application does not contain any clear 
                indication of fraud or falsification; and
                  ``(C) the application contains each attestation 
                required under subsection (a)(3).
          ``(2) Determination.--Not later than 90 days after receipt of 
        an application under this section--
                  ``(A) if the Secretary verifies that the applicant 
                has met the application requirements described in 
                paragraph (1), the Secretary shall approve the 
                application and issue a certification to the applicant 
                with or without conditions on the proposed operation of 
                the space object pursuant to subsection (c)(1)(A); or
                  ``(B) if the Secretary cannot verify that the 
                applicant has met the application requirements 
                described in paragraph (1) or if the Secretary 
                determines it is necessary to deny the application 
                pursuant to subsection (c)(1)(B), the Secretary--
                          ``(i) shall issue a denial of the application 
                        signed by the Secretary (a duty that may not be 
                        delegated, including to the Office of Space 
                        Commerce); and
                          ``(ii) shall, not later than 10 days after 
                        the decision to deny the certification--
                                  ``(I) provide the applicant with a 
                                written notification containing a 
                                clearly articulated rationale for the 
                                denial that provides, to the maximum 
                                extent practicable, guidance to the 
                                applicant as to how such rationale for 
                                denial could be addressed in a 
                                subsequent application; and
                                  ``(II) notify the Committee on 
                                Commerce, Science, and Transportation 
                                of the Senate and the Committee on 
                                Science, Space, and Technology of the 
                                House of Representatives of such 
                                rationale.
          ``(3) Automatic approval.--If the Secretary has not approved 
        or denied the application before the deadline under paragraph 
        (2), the certification shall be approved without condition. The 
        Secretary may not allow tolling of the 90-day period under such 
        paragraph.
          ``(4) Improper basis for denial.--The Secretary may not deny 
        an application for a certification under this section in order 
        to protect an existing certification holder from competition.
          ``(5) Subsequent review.--The Secretary may not prejudice a 
        new application for the proposed operations denied pursuant to 
        paragraph (2)(B) if such new application contains remedies 
        addressing the rationale for such denial.
  ``(c) Compliance With the Outer Space Treaty.--
          ``(1) In general.--If the Secretary determines, with clear 
        and convincing evidence, that the proposed operation of a space 
        object under an application for a certification under this 
        chapter is a violation of an international obligation of the 
        United States pertaining to a nongovernmental entity of the 
        United States under the Outer Space Treaty--
                  ``(A) the Secretary may condition the proposed 
                operation covered by the certification only to the 
                extent necessary to prevent a violation of such 
                international obligation; or
                  ``(B) if the Secretary determines that there is no 
                practicable way to condition such certification to 
                prevent such a violation, the Secretary may deny the 
                application.
          ``(2) Limitation for determinations.--A determination under 
        paragraph (1) shall be limited as follows:
                  ``(A) The Federal Government shall interpret and 
                fulfill its international obligations under the Outer 
                Space Treaty in a manner that minimizes regulations and 
                limitations on the freedom of United States 
                nongovernmental entities to explore and use space.
                  ``(B) The Federal Government shall interpret and 
                fulfill its international obligations under the Outer 
                Space Treaty in a manner that promotes free enterprise 
                in outer space.
                  ``(C) The Federal Government shall not presume all 
                obligations of the United States under the Outer Space 
                Treaty are obligations to be imputed upon United States 
                nongovernmental entities.
                  ``(D) Guidelines promulgated by the Committee on 
                Space Research may not be considered international 
                obligations of the United States.
          ``(3) Presumptions.--In making a determination under 
        paragraph (1), the Secretary shall presume, absent clear and 
        convincing evidence to the contrary, that--
                  ``(A) any attestation made by an applicant pursuant 
                to subsection (a)(3) is sufficient to meet the 
                international obligations of the United States 
                pertaining to nongovernmental entities of the United 
                States under the Outer Space Treaty addressed by such 
                attestation; and
                  ``(B) reasonably commercially available efforts are 
                sufficient to be in conformity with the international 
                obligations of the United States pertaining to 
                nongovernmental entities of the United States under the 
                Outer Space Treaty.
          ``(4) Prohibition on retroactive conditions.--No other 
        modifications may be made, or additional conditions placed, on 
        a certification after the date on which the certification is 
        issued (except to account for a material change as provided in 
        section 80105(c) or the removal of a condition pursuant to 
        subsection (d)).
          ``(5) Nondelegable.--The responsibilities of the Secretary 
        under this subsection may not be delegated, including to the 
        Office of Space Commerce.
  ``(d) Authority To Remove Conditions.--The Secretary, as determined 
appropriate, may remove a condition placed on a certification pursuant 
to subsection (c).

``Sec. 80104. Mitigation of space debris

  ``(a) Plan Submission.--To be eligible for a certification under this 
chapter, each application shall include a space debris mitigation plan 
for the space object. Such plan--
          ``(1) shall take into account best practice guidelines 
        promulgated by the United States and the Interagency Debris 
        Coordinating Committee; and
          ``(2) may take into account that a space object may end 
        certified operations and be stored in a safe manner until such 
        time as the space object is permanently disposed of or 
        certified for further operations.
  ``(b) Implementation.--To the maximum extent practicable, a holder of 
a certification under this chapter shall notify the Secretary not later 
than 30 days before beginning to implement the disposal phase of a 
space debris mitigation plan described in subsection (a). Such 
certification holder shall, not later than 30 days after completing 
implementation of such phase, update the Secretary of the results of 
any space debris mitigation efforts.

``Sec. 80105. Continuing certification requirements

  ``(a) Notification Requirement.--A certification holder shall, in a 
timely manner, notify the Secretary if--
          ``(1) a certified space object has terminated operations; or
          ``(2) a catastrophic event has occurred to a certified space 
        object, such as the unplanned destruction of a space object.
  ``(b) Material Change.--The Secretary shall require certification 
holders to inform the Secretary of--
          ``(1) any material changes to the space object or the planned 
        operations of the space object prior to launch; and
          ``(2) any material anomalies or departures from the planned 
        operations during the course of operations.
  ``(c) Update to Certification.--Not later than 14 days after the date 
of receipt of information regarding a material change pursuant to 
subsection (b), the Secretary shall make a determination of whether 
such material change is substantial enough to warrant additional review 
under section 80103(b). Not later than 90 days after a determination 
that such review is warranted, the Secretary shall complete a similar 
such review process for such material change as is required for a 
certification applicant under such section.

``Sec. 80106. Certification transfer

  ``(a) In General.--Subject to subsections (b) and (c), the Secretary 
shall provide for the transfer of a certification under this chapter 
from the certification holder to another United States entity to 
continue the operations allowed under such certification.
  ``(b) Transfer Request Requirements.--To be eligible for a transfer 
under subsection (a), the certification holder shall submit to the 
Secretary a request that includes--
          ``(1) any identifying information regarding the proposed 
        transferee, including accompanying supporting documents, that 
        would be required under an initial application under section 
        80103; and
          ``(2) each attestation required under section 80103(a)(3), 
        including accompanying supporting documents, completed by the 
        proposed transferee.
  ``(c) Determination.--Not later than 90 days after a certification 
holder submits a request under subsection (b), the Secretary shall 
complete a similar review process for the request for transfer as 
required for a certification applicant under section 80103(b).

``Sec. 80107. Certification expiration and termination

  ``(a) Certification Expiration.--A certification issued under this 
chapter shall expire on the earlier of--
          ``(1) the date on which all operations approved under such 
        certification cease, including carrying out a space debris 
        mitigation plan of any space object approved under such 
        certification;
          ``(2) the date on which all space objects approved under the 
        certification no longer exist; or
          ``(3) the date that is 5 years after the date on which the 
        certification was approved, if no operations approved under the 
        certification have commenced by such date.
  ``(b) Certification Termination.--
          ``(1) In general.--The Secretary shall terminate a 
        certification under this chapter if an applicant or 
        certification holder is convicted of a violation of section 
        1001 of title 18 related to the certification process under 
        this chapter.
          ``(2) Eligibility.--A certification holder whose 
        certification is terminated under this subsection shall be 
        ineligible to apply for or receive a certification under this 
        chapter.
          ``(3) Space debris mitigation plan.--Upon termination of a 
        certification under paragraph (1), the Secretary may require 
        the certification holder to carry out the space debris 
        mitigation plan submitted by the certification holder under 
        section 80104.

``Sec. 80108. Existing license or pending application for launch or 
                    reentry

  ``(a) Continuation of Existing License.--Any United States entity for 
whom a payload has been approved (and not subject to an exemption under 
section 80110) on or before the effective date of this section for 
launch or reentry under section 50904 as part of a license issued under 
chapter 509 may--
          ``(1) elect to be immediately considered certified for 
        operation under this chapter on such effective date, in which 
        case all terms and conditions applicable to the payload as 
        approved for launch or reentry as part of a license issued 
        under chapter 509 shall apply for the duration of the operation 
        of the payload; or
          ``(2) apply for a certification under this chapter for the 
        operation of the licensed activities and may continue to 
        operate pursuant to such license until such time as such 
        certification is issued.
  ``(b) Rescinding or Transfer of Pending License.--A payload of a 
United States entity that, on the effective date of this section, is 
pending approval under section 50904 as part of a launch or reentry 
license issued under chapter 509 may be, at the election of the 
applicant for payload approval--
          ``(1) rescinded without prejudice; or
          ``(2) transferred to the Office of Space Commerce and deemed 
        to be a pending application for certification under this 
        chapter.
  ``(c) Effective Date.--This section shall take effect on the date 
that is 1 year after the date of enactment of the American Space 
Commerce Free Enterprise Act of 2017.

``Sec. 80109. Private Space Activity Advisory Committee

  ``(a) Establishment.--The Secretary shall establish a Private Space 
Activity Advisory Committee (in this section referred to as the 
`Committee') consisting of 15 members who shall be appointed by the 
Secretary.
  ``(b) Chair.--The Committee shall designate one member as the chair 
of the Committee.
  ``(c) Membership.--
          ``(1) Limitation.--Members of the Committee may not be 
        Federal Government employees or officials.
          ``(2) Travel expenses.--Members of the Committee shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with the applicable provisions under 
        subchapter I of chapter 57 of title 5.
          ``(3) Qualifications.--Members of the Committee shall include 
        a variety of space policy, engineering, technical, science, 
        legal, and finance professionals. Not less than 3 members shall 
        have significant experience working in the commercial space 
        industry.
  ``(d) Terms.--Each member of the Committee shall serve for a term of 
4 years and may not serve as a member for the 2-year period following 
the date of completion of each such term.
  ``(e) Duties.--The duties of the Committee shall be to--
          ``(1) analyze the status and recent developments of 
        nongovernmental space activities;
          ``(2) analyze the effectiveness and efficiency of the 
        implementation of the certification process under this chapter;
          ``(3) provide recommendations to the Secretary and Congress 
        on how the United States can facilitate and promote a robust 
        and innovative private sector that is investing in, developing, 
        and operating space objects;
          ``(4) identify any challenges the United States private 
        sector is experiencing--
                  ``(A) with the authorization and supervision of the 
                operation of space objects under this chapter;
                  ``(B) more generally, with international obligations 
                of the United States relevant to private sector 
                activities in outer space;
                  ``(C) with harmful interference to private sector 
                activities in outer space; and
                  ``(D) with access to adequate, predictable, and 
                reliable radio frequency spectrum;
          ``(5) review existing best practices for United States 
        entities to avoid the harmful contamination of the Moon and 
        other celestial bodies;
          ``(6) review existing best practices for United States 
        entities to avoid adverse changes in the environment of the 
        Earth resulting from the introduction of extraterrestrial 
        matter;
          ``(7) provide information, advice, and recommendations on 
        matters relating to United States private sector activities in 
        outer space; and
          ``(8) provide information, advice, and recommendations on 
        matters related to the authority of the Secretary under this 
        chapter or to private sector space activities authorized 
        pursuant to this chapter that the Committee determines 
        necessary.
  ``(f) Annual Report.--The Committee shall submit to Congress, the 
President, and the Secretary an annual report that includes the 
information, analysis, findings, and recommendations described in 
subsection (e).
  ``(g) Sunset.--The Committee shall terminate on the date that is 10 
years after the date on which the Committee is established.

``Sec. 80110. Exemptions

  ``(a) In General.--A certification is not required under this chapter 
for any of the following operations:
          ``(1) Space object activities authorized by another country 
        that is a party to the Outer Space Treaty.
          ``(2) Launch or reentry vehicle operations licensed by the 
        Department of Transportation under chapter 509.
          ``(3) Space stations licensed by the Federal Communications 
        Commission under the Communications Act of 1934 (47 U.S.C. 151 
        et seq.).
  ``(b) Rule of Construction.--Nothing in this section shall be 
construed to exempt any entity from the requirement to obtain a permit 
to operate a space-based remote sensing system under chapter 802.

``Sec. 80111. Protecting the interests of United States entity space 
                    objects

  ``The President shall--
          ``(1) protect the interests of United States entity 
        exploration and use of outer space, including commercial 
        activity and the exploitation of space resources, from acts of 
        foreign aggression and foreign harmful interference;
          ``(2) protect ownership rights of United States entity space 
        objects and obtained space resources; and
          ``(3) ensure that United States entities operating in outer 
        space are given due regard.''.

SEC. 4. PERMITTING OF SPACE-BASED REMOTE SENSING SYSTEMS.

  (a) Findings.--Congress finds the following:
          (1) The commercial market for space-based remote sensing 
        technologies and information has experienced significant growth 
        since the passage of the Land Remote Sensing Policy Act of 
        1992.
          (2) It is in the interest of the United States to foster new 
        and novel space-based remote sensing applications and services 
        and to help facilitate their continued domestic growth.
          (3) Since the passage of the Land Remote Sensing Policy Act 
        of 1992, the National Oceanic and Atmospheric Administration's 
        Office of Commercial Remote Sensing has experienced a 
        significant increase in applications for private remote sensing 
        space system licenses as authorized under section 60121 of 
        title 51, United States Code.
          (4) Many of the applicants for commercial space-based remote 
        sensing licenses have encountered significant delays and 
        unnecessary obstacles in the application process.
          (5) The current licensing paradigm must be updated as to not 
        discourage the continued growth of the United States space-
        based remote sensing industry. It must be updated in a way that 
        satisfies the needs of commercial remote sensing market as well 
        as the national security of the United States.
          (6) In order to protect United States leadership and 
        commercial viability in remote sensing technologies, the 
        Federal Government should not limit commercial entities from 
        providing remote sensing capabilities or data products that are 
        available or reasonably expected to be made available in the 
        next 3 years in the international or domestic marketplace.
  (b) Policy.--It is the policy of the United States that, to the 
maximum extent practicable, the Federal Government shall take steps to 
protect the national security interests of the United States that do 
not involve regulating or limiting the freedoms of United States 
nongovernmental entities to explore and use space. Federal Government 
agencies shall mitigate any threat to national security posed by the 
exploration and use of outer space by United States citizens and 
entities, to the maximum extent practicable, changing Federal 
Government activities and operations.
  (c) Amendment.--Title 51, United States Code, is further amended by 
adding at the end the following:

    ``CHAPTER 802--PERMITTING OF SPACE-BASED REMOTE SENSING SYSTEMS

``Sec.
``80201. Permitting authority.
``80202. Application for permit.
``80203. Continuing permitting requirements.
``80204. Permit transfer.
``80205. Agency activities.
``80206. Annual reports.
``80207. Advisory Committee on Commercial Remote Sensing.
``80208. Continuation of existing license or pending application.
``80209. Commercial Remote Sensing Regulatory Affairs Office.

``Sec. 80201. Permitting authority

  ``(a) In General.--Not later than 1 year after the date of enactment 
of the American Space Commerce Free Enterprise Act of 2017, the 
Secretary is authorized to permit persons to operate space-based remote 
sensing systems.
  ``(b) Consultation.--The Secretary shall, as the Secretary considers 
necessary, consult with the heads of other relevant agencies in 
carrying out the requirements of this chapter, pursuant to section 
80311.
  ``(c) Limitation With Respect to System Used for Other Purposes.--In 
the case of a space object that is used for remote sensing and other 
purposes, the authority of the Secretary under this chapter shall be 
limited to the remote sensing operations of such space object.
  ``(d) De Minimis Exception.--
          ``(1) Waiver.--The Secretary may waive the requirement for a 
        permit for a space-based remote sensing system that the 
        Secretary determines is--
                  ``(A) ancillary to the primary design purpose of the 
                space object; or
                  ``(B) too trivial to require a determination under 
                section 80202(c) relating to national security.
          ``(2) Guidance.--Not later than 1 year after the date of 
        enactment of this subsection, the Secretary shall issue 
        guidance providing a clear explanation of the criteria used by 
        the Secretary to grant a de minimis waiver under paragraph 
        (1)(B) for a space-based remote sensing system that is too 
        trivial to require a determination under section 80202(c).
  ``(e) Coverage of Permit.--The Secretary shall, to the maximum extent 
practicable, ensure that only one permit is required under this chapter 
to--
          ``(1) conduct multiple operations carried out using a space-
        based remote sensing system;
          ``(2) operate multiple space-based remote sensing systems 
        that carry out substantially similar operations; or
          ``(3) use multiple space-based remote sensing systems to 
        carry out a single remote sensing operation.
  ``(f) Prohibition on Operation.--Not later than 1 year after the date 
of enactment of the American Space Commerce Free Enterprise Act of 
2017, no person may, directly or through any subsidiary or affiliate, 
operate any space-based remote sensing system without a permit issued 
under this chapter.
  ``(g) Responsible Party.--In any case in which the applicant for a 
permit under this chapter is not a United States entity, the applicant 
shall identify a United States entity that consents to be responsible 
for the permitted operation of the space-based remote sensing system.
  ``(h) Operation of Space-Based Remote Sensing System.--For purposes 
of this chapter, the operation of a space-based remote sensing system--
          ``(1) begins when the system--
                  ``(A) is located in outer space; and
                  ``(B) can meet the minimum threshold and objective 
                capabilities for the system's stated need; and
          ``(2) shall not cover the acts of distribution, sale, or 
        transfer of data, information, or services to persons, foreign 
        or domestic, including any such acts taken pursuant to an 
        agreement with such persons.

``Sec. 80202. Application for permit

  ``(a) Application Process.--
          ``(1) In general.--To receive a permit to operate a space-
        based remote sensing system under this chapter, a person shall 
        submit an application to the Secretary as provided in paragraph 
        (2). Such application shall include, for each required item, 
        sufficient evidence to demonstrate each fact or assertion.
          ``(2) Contents.--An application described in paragraph (1) 
        shall include only the following information, with respect to 
        each space-based remote sensing system and the operations 
        proposed to be permitted:
                  ``(A) The name, address, and contact information of 
                one or more United States entity identified by the 
                applicant, pursuant to section 80201(g), as responsible 
                for the operation of the space-based remote sensing 
                system.
                  ``(B) If available at the time of submission of the 
                application, the planned date and location of the 
                launch of the applicable space object, including the 
                identity of the launch provider.
                  ``(C) The general physical form and composition of 
                the space-based remote sensing system.
                  ``(D) A description of the proposed operations of the 
                space-based remote sensing system that includes--
                          ``(i) when and where the space-based remote 
                        sensing system will operate;
                          ``(ii) when and where the operation of the 
                        space-based remote sensing system will 
                        terminate; and
                          ``(iii) any additional information necessary 
                        to make a determination under subsection (c) 
                        regarding a significant threat to national 
                        security, as prescribed in advance in 
                        regulation by the Secretary.
                  ``(E) A description of how the space-based remote 
                sensing system will be operated and disposed of in a 
                manner to mitigate the generation of space debris.
                  ``(F) Information about third-party liability 
                insurance obtained, if any, by the applicant for 
                operations of the space-based remote sensing system, 
                including the amount and coverage of such liability 
                insurance.
  ``(b) Review of Application.--
          ``(1) Verifications.--Not later than 90 days after receipt of 
        an application under this section, the Secretary shall verify 
        that--
                  ``(A) the application is complete pursuant to 
                subsection (a); and
                  ``(B) the application does not contain any clear 
                indication of fraud or falsification.
          ``(2) Determination.--Not later than 90 days after receipt of 
        an application under this section--
                  ``(A) if the Secretary verifies that the applicant 
                has met the application requirements described in 
                paragraph (1), the Secretary shall approve the 
                application and issue a permit to the applicant with or 
                without conditions on the proposed operation of the 
                space-based remote sensing system pursuant to 
                subsection (c)(1)(A); or
                  ``(B) if the Secretary cannot verify that the 
                applicant has met the application requirements 
                described in paragraph (1) or if the Secretary makes a 
                determination to deny the application under subsection 
                (c)(1)(B), the Secretary--
                          ``(i) shall issue a denial of the application 
                        signed by the Secretary (a duty that may not be 
                        delegated, including to the Office of Space 
                        Commerce); and
                          ``(ii) shall, not later than 10 days after 
                        the decision to deny the application--
                                  ``(I) provide the applicant with a 
                                written notification containing a 
                                clearly articulated rationale for the 
                                denial that, to the maximum extent 
                                practicable--
                                          ``(aa) provides guidance to 
                                        the applicant as to how the 
                                        articulated rationale for 
                                        denial could be addressed in a 
                                        subsequent application; and
                                          ``(bb) includes all 
                                        classified information included 
                                        in such rationale for which the 
                                        applicant has the required 
                                        security clearance; and
                                  ``(II) submit a notification of the 
                                denial to the Committee on Commerce, 
                                Science, and Transportation of the 
                                Senate and the Committee on Science, 
                                Space, and Technology of the House of 
                                Representatives that--
                                          ``(aa) contains the clearly 
                                        articulated rationale for the 
                                        denial; and
                                          ``(bb) in the case of a 
                                        denial pursuant to a national 
                                        security determination under 
                                        subsection (c)--
                                                  ``(AA) includes an 
                                                explanation of how, and 
                                                clear and convincing 
                                                evidence that, to the 
                                                maximum extent 
                                                practicable, the 
                                                Federal Government took 
                                                steps to mitigate a 
                                                significant threat to 
                                                the national security 
                                                of the United States 
                                                posed by the operation 
                                                of the applicant's 
                                                space-based remote 
                                                sensing system by 
                                                changing Federal 
                                                Government activities 
                                                and operations; and
                                                  ``(BB) may contain 
                                                classified information.
          ``(3) Automatic approval.--If the Secretary has not approved 
        or denied the application before the deadline under paragraph 
        (2), the application shall be approved without condition. The 
        Secretary may not allow tolling of the 90-day period under such 
        paragraph.
          ``(4) Improper basis for denial.--The Secretary may not deny 
        an application for a permit under this section in order to 
        protect an existing permit holder from competition.
          ``(5) Subsequent review.--The Secretary may not prejudice a 
        new application for the proposed operations denied pursuant to 
        paragraph (2)(B) if such new application contains remedies 
        addressing the rationale for such denial.
  ``(c) Addressing National Security Threat.--
          ``(1) In general.--If the Secretary determines, with clear 
        and convincing evidence, that the proposed operation of a 
        space-based remote sensing system under an application for a 
        permit under this chapter poses a significant threat to the 
        national security of the United States as provided in paragraph 
        (2)--
                  ``(A) the Secretary may condition the proposed 
                operation covered by the permit only to the extent 
                necessary to address such threat; or
                  ``(B) if the Secretary determines that there is no 
                practicable way to condition such permit to address 
                such threat, the Secretary may deny the application.
          ``(2) Significant threat to national security.--For purposes 
        of a determination under paragraph (1), a significant threat to 
        the national security of the United States is a threat--
                  ``(A) that is imminent; and
                  ``(B) that cannot practicably be mitigated through 
                changes to Federal Government activities or operations.
          ``(3) Reasonably commercially available efforts.--To the 
        maximum extent practicable, the Secretary shall only place a 
        condition on a permit that is achievable using reasonably 
        commercially available efforts.
          ``(4) Notification.--Not later than 10 days after the 
        decision to condition the proposed operation covered by a 
        permit pursuant to this subsection, the Secretary shall--
                  ``(A) provide the applicant with a written 
                notification containing a clearly articulated rationale 
                for the condition that, to the maximum extent 
                practicable--
                          ``(i) provides guidance to the applicant as 
                        to how the articulated rationale for condition 
                        could be addressed in a subsequent application; 
                        and
                          ``(ii) includes all classified information 
                        included in such rationale for which the 
                        applicant has the required security clearance; 
                        and
                  ``(B) submit a notification of the condition to the 
                Committee on Commerce, Science, and Transportation of 
                the Senate and the Committee on Science, Space, and 
                Technology of the House of Representatives that--
                          ``(i) contains the clearly articulated 
                        rationale for the condition;
                          ``(ii) includes an explanation of how, and 
                        clear and convincing evidence that, to the 
                        maximum extent practicable, the Federal 
                        Government took steps to mitigate a significant 
                        threat to the national security of the United 
                        States posed by the operation of the 
                        applicant's space-based remote sensing system 
                        by changing Federal Government activities and 
                        operations; and
                          ``(iii) may contain classified information.
          ``(5) Prohibition on retroactive conditions.--No other 
        modifications may be made, or additional conditions placed, on 
        a permit after the date on which the permit is issued except to 
        account for a material change as provided in section 80203(c).
          ``(6) Nondelegable.--The responsibilities of the Secretary 
        under this subsection may not be delegated, including to the 
        Office of Space Commerce.
  ``(d) Limitations on Conditions.--
          ``(1) Same or similar capability.--No operational condition 
        under subsection (c) may be placed on a space-based remote 
        sensing system that has the same or substantially similar 
        space-based remote sensing capabilities as another system 
        permitted under this chapter with no such condition.
          ``(2) Conditions that exceed permitted conditions.--The 
        Secretary may not place a condition on a permit for a space-
        based remote sensing system that exceeds a condition placed on 
        an existing permitted system that has the same or substantially 
        similar capabilities.
  ``(e) Commercially Available Capability.--
          ``(1) Exception.--The Secretary may not deny an application 
        for, or place a condition on, a permit for the operation of a 
        space-based remote sensing system for which the same or 
        substantially similar capabilities, derived data, products, or 
        services are already commercially available or reasonably 
        expected to be made available in the next 3 years in the 
        international or domestic marketplace. The exception in the 
        previous sentence applies regardless of whether the marketplace 
        products and services originate from the operation of aircraft, 
        unmanned aircraft, or other platforms or technical means or are 
        assimilated from a variety of data sources.
          ``(2) Clear and convincing evidence.--Each denial of an 
        application for, and each condition placed on, a permit for the 
        operation of a space-based remote sensing system, shall include 
        an explanation of, and clear and convincing evidence that, the 
        exception under paragraph (1) does not apply with respect to 
        the proposed permitted operations of such system.
          ``(3) Database.--The President shall--
                  ``(A) maintain a database of commercially available 
                capabilities described in paragraph (1);
                  ``(B) update such database not less than once every 3 
                months; and
                  ``(C) 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 containing the contents of the 
                database upon each update required under subparagraph 
                (B).
          ``(4) Applicant submissions.--An applicant for, or holder of, 
        a permit for the operation of a space-based remote sensing 
        system may submit to the Secretary evidence of, or information 
        regarding, a commercially available capability described in 
        paragraph (1) for consideration for inclusion in the database.
          ``(5) Nonapplication of condition.--In any case in which the 
        Secretary determines that the exception under paragraph (1) 
        applies with respect to a permit for the operation of a space-
        based remote sensing system for which the Secretary has placed 
        a condition under subsection (c), such condition shall no 
        longer apply with respect to such permitted operations.
  ``(f) Authority To Remove Conditions.--Nothing in this section shall 
be construed to prohibit the Secretary from removing a condition placed 
on a permit pursuant to subsection (c).

``Sec. 80203. Continuing permitting requirements

  ``(a) Notification Requirement.--A permit holder shall, in a timely 
manner, notify the Secretary if--
          ``(1) a permitted space-based remote sensing system has 
        terminated operations; or
          ``(2) a catastrophic event has occurred to a space-based 
        remote sensing system, such as the unplanned destruction of 
        such system.
  ``(b) Material Change.--The Secretary shall require permit holders to 
inform the Secretary of--
          ``(1) any material changes to the space-based remote sensing 
        system or the planned operations of such system prior to 
        launch; and
          ``(2) any material anomalies or departures from the planned 
        operations during the course of operations.
  ``(c) Update to Permit.--Not later than 14 days after the date of 
receipt of information regarding a material change pursuant to 
subsection (b), the Secretary shall make a determination of whether 
such material change is substantial enough to warrant additional review 
under section 80202(b). Not later than 90 days after a determination 
that such review is warranted, the Secretary shall complete a similar 
such review process for such material change as is required for a 
permit applicant under such section.

``Sec. 80204. Permit transfer

  ``(a) In General.--Subject to subsections (b) and (c), the Secretary 
shall provide for the transfer of a permit under this chapter from the 
permit holder to another person to continue the operations allowed 
under such permit.
  ``(b) Transfer Request Requirements.--To be eligible for a transfer 
under subsection (a), the permit holder shall submit to the Secretary a 
request that includes any identifying information regarding the 
transferee that would be required under an initial application under 
section 80202.
  ``(c) Determination.--Not later than 14 days after the date on which 
the Secretary receives a transfer request pursuant to subsection (b), 
the Secretary shall make a determination of whether such material 
change is substantial enough to warrant additional review under section 
80202(b). Not later than 90 days after a determination that such review 
is warranted, the Secretary shall complete a similar such review 
process for such transferee as is required for a permit applicant under 
such section.
  ``(d) Material Change.--Any transfer of a permit under this chapter 
constitutes a material change under section 80203(b).

``Sec. 80205. Agency activities

  ``(a) Utilization of Federal Government Vehicle.--A person may apply 
for a permit to operate a space-based remote sensing system that 
utilizes, on a space-available basis, a civilian Federal Government 
satellite or vehicle as a platform for such system. The Secretary, 
pursuant to this chapter, may permit such system if it meets all 
conditions of this chapter.
  ``(b) Assistance.--The Secretary may offer assistance to persons in 
finding appropriate opportunities for the utilization described in 
subsection (a).
  ``(c) Agreements.--To the extent provided in advance by appropriation 
Acts, an agency may enter into an agreement for the utilization 
described in subsection (a) if such agreement is consistent with the 
agency's mission and statutory authority, and if the space-based remote 
sensing system is issued a permit by the Secretary under this chapter 
before commencing operation.

``Sec. 80206. Annual reports

  ``(a) In General.--The Secretary shall submit a report to the 
Committee on Commerce, Science, and Transportation of the Senate and 
the Committee on Science, Space, and Technology of the House of 
Representatives not later than 180 days after the date of enactment of 
the American Space Commerce Free Enterprise Act of 2017, and annually 
thereafter, on--
          ``(1) the Secretary's implementation of this chapter, 
        including--
                  ``(A) a list of all applications received in the 
                previous calendar year;
                  ``(B) a list of all applications that resulted in a 
                permit;
                  ``(C) a list of all applications denied and an 
                explanation of why each application was denied, 
                including any information relevant to the adjudication 
                process of a request for a permit;
                  ``(D) a list of all applications that required 
                additional information; and
                  ``(E) a list of all applications whose disposition 
                exceeded the 90-day deadline, the total days overdue 
                for each application that exceeded such deadline, and 
                an explanation for the delay; and
          ``(2) a description of all actions taken by the Secretary 
        under the administrative authority granted by section 80301.
  ``(b) Classified Annexes.--Each report under subsection (a) may 
include classified annexes as necessary to protect the disclosure of 
sensitive or classified information.

``Sec. 80207. Advisory Committee on Commercial Remote Sensing

  ``(a) Establishment.--The Secretary shall establish an Advisory 
Committee on Commercial Remote Sensing (in this section referred to as 
the `Committee') consisting of 15 members who shall be appointed by the 
Secretary.
  ``(b) Chair.--The Committee shall designate one member as the chair 
of the Committee.
  ``(c) Membership.--
          ``(1) Limitation.--Members of the Committee may not be 
        Federal Government employees or officials.
          ``(2) Travel expenses.--Members of the Committee shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with the applicable provisions under 
        subchapter I of chapter 57 of title 5.
  ``(d) Terms.--Each member of the Committee shall serve for a term of 
4 years and may not serve as a member for the 2-year period following 
the date of completion of each such term.
  ``(e) Duties.--The duties of the Committee shall be to--
          ``(1) provide information, advice, and recommendations on 
        matters relating to the United States commercial space-based 
        remote sensing industry;
          ``(2) analyze the effectiveness and efficiency of the 
        implementation of the space-based remote sensing system 
        permitting process under this chapter;
          ``(3) provide recommendations to the Secretary and Congress 
        on how the United States can facilitate and promote a robust 
        and innovate private sector that is investing in, developing, 
        and operating space-based remote sensing systems;
          ``(4) identify any challenges the United States private 
        sector is experiencing with the authorization and supervision 
        of the operation of space-based remote sensing systems under 
        this chapter; and
          ``(5) provide information, advice, and recommendations on 
        matters related to the authority of the Secretary under this 
        chapter or to private sector space activities authorized 
        pursuant to this chapter that the Committee determines 
        necessary.
  ``(f) Annual Report.--The Committee shall submit to Congress, the 
President, the Secretary, and the Director of the Office of Space 
Commerce, an annual report that includes the information, analysis, 
findings, and recommendations described in subsection (e).
  ``(g) Sunset.--The Committee shall terminate on the date that is 10 
years after the date on which the Committee is established.

``Sec. 80208. Continuation of existing license or pending application

  ``(a) Continuation of Existing License.--Any United States entity for 
whom a license for the operation of a space-based remote sensing system 
issued under subchapter III of chapter 601 that is valid on the 
effective date of this section may--
          ``(1) elect to be immediately considered permitted for 
        operation under this chapter, in which case all terms and 
        conditions of a license issued under such subchapter with 
        respect to the operation of such system shall apply for the 
        duration of the license; or
          ``(2) apply for a permit for operation under this chapter and 
        may continue to operate pursuant to such license until such 
        time as such permit is issued.
  ``(b) Rescind or Transfer of Pending License.--An applicant with an 
application for a remote sensing license under subchapter III of 
chapter 601 that is pending on the effective date of this section may 
be, at the election of the applicant--
          ``(1) rescinded without prejudice; or
          ``(2) transferred to the Office of Space Commerce and deemed 
        to be a pending application for a permit under this chapter.
  ``(c) Effective Date.--This section shall take effect on the date 
that is 1 year after the date of enactment of the American Space 
Commerce Free Enterprise Act of 2017.

``Sec. 80209. Commercial Remote Sensing Regulatory Affairs Office

  ``On the date that is 1 year after the date of enactment of the 
American Space Commerce Free Enterprise Act of 2017, the Commercial 
Remote Sensing Regulatory Affairs Office of the National Oceanic and 
Atmospheric Administration is abolished.''.

SEC. 5. ADMINISTRATIVE PROVISIONS RELATED TO CERTIFICATION AND 
                    PERMITTING.

  Title 51, United States Code, is further amended by adding at the end 
the following:

 ``CHAPTER 803--ADMINISTRATIVE PROVISIONS RELATED TO CERTIFICATION AND 
                               PERMITTING

``Sec.
``80301. Administrative authority.
``80302. Consultation.
``80303. Appeal of denial or condition of certification or permit.
``80304. Exclusive authority for determination of international 
obligations.
``80305. Limitation on certain agency supervision.
``80306. Commercial exploration and use of outer space.
``80307. Rule of construction on concurrent application submission.
``80308. Federal jurisdiction.
``80309. Global commons.
``80310. Regulatory authority.
``80311. Consultation with relevant agencies.
``80312. Authorization of appropriations.

``Sec. 80301. Administrative authority

  ``(a) Functions.--In order to carry out the responsibilities 
specified in this subtitle, the Secretary may--
          ``(1) seek an order of injunction or similar judicial 
        determination from a district court of the United States with 
        personal jurisdiction over the certification or permit holder 
        to terminate certifications or permits under this subtitle and 
        to terminate certified or permitted operations on an immediate 
        basis, if the Secretary determines that the certification or 
        permit holder has substantially failed to comply with any 
        provisions of this subtitle, or with any terms of a 
        certification or permit;
          ``(2) provide for civil penalties not to exceed $10,000 (each 
        day of operation constituting a separate violation) and not to 
        exceed $500,000 in total, for--
                  ``(A) noncompliance with the certification or 
                permitting requirements or regulations issued under 
                this subtitle; or
                  ``(B) the operation of a space object or space-based 
                remote sensing system without the applicable 
                certification or permit issued under this subtitle;
          ``(3) compromise, modify, or remit any such civil penalty;
          ``(4) seize any object, record, or report, or copies of 
        materials, documents, or records, pursuant to a warrant from a 
        magistrate based on a showing of probable cause to believe that 
        such object, record, or report was used, is being used, or is 
        likely to be used in violation of this subtitle or the 
        requirements of a certification or permit or regulation issued 
        thereunder; and
          ``(5) make investigations and inquiries concerning any matter 
        relating to the enforcement of this subtitle.
  ``(b) Review of Agency Action.--Any holder of, or applicant for, a 
certification or a permit who makes a timely request for review of an 
adverse action pursuant to paragraph (2) or (4) of subsection (a) shall 
be entitled to adjudication by the Secretary on the record after an 
opportunity for any agency hearing with respect to such adverse action. 
Any final action by the Secretary under this subsection shall be 
subject to judicial review under chapter 7 of title 5, as provided in 
section 80303 of this chapter.
  ``(c) No Cost for Certification or Permit.--The Secretary may not 
impose a fee or other cost on a holder of, or applicant for--
          ``(1) a certification under chapter 801; or
          ``(2) a permit under chapter 802.
  ``(d) No Authority To Set Conditions.--The Secretary may not impose a 
substantive condition on, or any other requirement for, the issuance of 
a certification or permit except as specifically provided in this 
subtitle.
  ``(e) FOIA Exemption.--Paragraph (3) of section 552(b) of title 5 
shall apply with respect to any filing relating to a certification or a 
permit under this subtitle.
  ``(f) Limitation on Exceptions to Administrative Procedures.--The 
exceptions under section 553(a)(1), section 553(b)(B), or section 
554(a)(4) of title 5 shall not apply with respect to a certification or 
permit under this subtitle.

``Sec. 80302. Consultation

  ``(a) Sense of Congress.--It is the sense of the Congress that--
          ``(1) the United States Government has assets in Earth orbit 
        critical to national security, scientific research, economic 
        growth, and exploration;
          ``(2) such assets represent a considerable investment of 
        United States taxpayers; and
          ``(3) it is in the national interest of the United States to 
        facilitate opportunities to provide for the protection of such 
        assets.
  ``(b) Review.--Not later than 30 days after the Secretary issues a 
certification under chapter 801, the Secretary shall review the 
operations of any space objects covered by the certification to 
determine whether the interaction between such operations and the 
operations of a Federal Government space object present a substantial 
risk to the physical safety of a space object operated by either party.
  ``(c) Requirement To Participate in Consultation.--If the Secretary 
makes a determination that a substantial risk identified under 
subsection (b) exists, the Secretary may require that the certification 
holder participate in a consultation under this section.
  ``(d) Parties to a Consultation.--
          ``(1) In general.--A consultation under this section may be 
        held, with respect to a substantial safety risk identified 
        under subsection (b), between--
                  ``(A) a certification holder responsible for the 
                certified space object operations; and
                  ``(B) any entity of the Federal Government operating 
                a potentially affected space object.
          ``(2) Participation.--The Secretary may not impose any 
        requirement on a party pursuant to participation in the 
        consultation.
  ``(e) Mitigation of Safety Risk.--In carrying out a consultation, the 
Secretary shall--
          ``(1) facilitate a discussion among the parties to the 
        consultation;
          ``(2) encourage a mutual understanding of the safety risk; 
        and
          ``(3) encourage, to the maximum extent practicable, voluntary 
        agreements between the parties to the consultation to improve 
        the physical safety of affected space object operations or 
        mitigate the physical safety risk.
  ``(f) Duration of Consultation; Notice.--Not later than 90 days after 
the Secretary requires a consultation under this section, the Secretary 
shall--
          ``(1) complete all activities related to the consultation; 
        and
          ``(2) submit to Congress a written notification with respect 
        to such consultation, that includes--
                  ``(A) the names of each party to the consultation;
                  ``(B) a description of the physical safety risk at 
                issue;
                  ``(C) whether any voluntary agreement was made by the 
                parties; and
                  ``(D) the content of any such agreement.
  ``(g) Rule of Construction.--Nothing in this section shall be 
construed to grant any additional authority to the Secretary to 
regulate, or place conditions on, any activity for which a 
certification or permit is required under this subtitle.

``Sec. 80303. Appeal of denial or condition of certification or permit

  ``An applicant who is denied a certification under section 
80103(b)(2)(B), an applicant who is denied a permit under section 
80202(b)(2)(B), or an applicant whose certification or permit is 
conditioned pursuant to section 80103(c) or section 80202(c), 
respectively, may appeal the denial or placement of a condition to the 
Secretary. The Secretary shall affirm or reverse the denial or 
placement of a condition after providing the applicant notice and an 
opportunity to be heard. The Secretary shall dispose of the appeal not 
later than 60 days after the appeal is submitted. If the Secretary 
denies the appeal, the applicant may seek review in the United States 
Court of Appeals for the District of Columbia Circuit or in the court 
of appeals of the United States for the circuit in which the person 
resides or has its principal place of business.

``Sec. 80304. Exclusive authority for determination of international 
                    obligations

  ``Except for the Secretary as authorized by this subtitle, no agency 
may impose a requirement or make a finding with regard to an 
international obligation of the United States pertaining to a 
nongovernmental entity of the United States under the Outer Space 
Treaty relating to--
          ``(1) the operation of a space object certified under chapter 
        801; and
          ``(2) the carrying out of a space debris mitigation plan of a 
        space object for which a certification was issued under chapter 
        801.

``Sec. 80305. Limitation on certain agency supervision

  ``(a) In General.--Not later than 1 year after the date of enactment 
of the American Space Commerce Free Enterprise Act of 2017, no other 
agency shall have the authority to authorize, place conditions on, or 
supervise the operation of space objects required to be certified under 
chapter 801 or space-based remote sensing systems required to be 
permitted under chapter 802 except--
          ``(1) the Department of Transportation with respect to launch 
        or reentry vehicle operations licensed under chapter 509; and
          ``(2) the Federal Communications Commission with respect to 
        space stations licensed under the Communications Act of 1934 
        (47 U.S.C. 151 et seq.).
  ``(b) Agreement Limitations.--Nothing in this section shall be 
construed to prevent an agency from including additional terms, 
conditions, limitations, or requirements, consistent with applicable 
provisions of law, beyond those required in this subtitle in a contract 
or other agreement with--
          ``(1) the holder of a certification under chapter 801 for the 
        operation of the applicable space object; or
          ``(2) the holder of a permit under chapter 802 for the 
        operation of the applicable space-based remote sensing system.

``Sec. 80306. Commercial exploration and use of outer space

  ``To the maximum extent practicable, the President, acting through 
appropriate Federal agencies, shall interpret and fulfill international 
obligations, including under the covered treaties on outer space, to 
minimize regulations and limitations on the freedom of United States 
nongovernmental entities to explore and use space.

``Sec. 80307. Rule of construction on concurrent application submission

  ``Nothing in this subtitle shall be construed to prevent an applicant 
from submitting to the Secretary concurrent applications for a 
certification under chapter 801 and a permit under chapter 802. The 
Secretary shall provide for applications under chapter 801 and chapter 
802 to be filed concurrently or at different times, at the discretion 
of the applicant. To the maximum extent practicable, the Secretary 
shall avoid duplication of information required in concurrently filed 
applications.

``Sec. 80308. Federal jurisdiction

  ``The district courts shall have original jurisdiction, exclusive of 
the courts of the States, of any civil action resulting from the 
operation of a space object for which a certification or permit is 
required under this subtitle.

``Sec. 80309. Global commons

  ``Notwithstanding any other provision of law, outer space shall not 
be considered a global commons.

``Sec. 80310. Regulatory authority

  ``(a) In General.--The Secretary shall issue such regulations as are 
necessary to carry out this subtitle.
  ``(b) Reducing Regulatory Burden.--In issuing regulations to carry 
out this subtitle, the Secretary shall avoid, to the maximum extent 
practicable, the placement of inconsistent, duplicative, or otherwise 
burdensome requirements on the operations of United States 
nongovernmental entities in outer space.

``Sec. 80311. Consultation with relevant agencies

  ``(a) In General.--Subject to subsection (b), the Secretary shall, as 
the Secretary considers necessary, consult with the heads of other 
relevant agencies in carrying out this subtitle.
  ``(b) Exclusive Authority of the Secretary.--The consultation 
authority provided by subsection (a) shall not be interpreted to alter 
the exclusive authority of the Secretary to authorize, place conditions 
on, and supervise the operation of space objects under chapter 801 and 
space-based remote sensing systems under chapter 802, as provided in 
and subject to the limitations of section 80305.

``Sec. 80312. Authorization of appropriations

  ``There are authorized to be appropriated $5,000,000 to the Office of 
Space Commerce for fiscal year 2018 to carry out this subtitle.''.

SEC. 6. TECHNICAL AND CONFORMING AMENDMENTS.

  (a) Table of Chapters.--The table of chapters of title 51, United 
States Code, is amended by adding at the end the following:

``Subtitle VIII--Authorization and Supervision of Nongovernmental Space 
                               Activities

``801. Certification to Operate Space Objects...............     80101 
``802. Permitting of Space-Based Remote Sensing Systems.....     80201 
``803. Administrative Provisions Related to Certification      80301''.
                            and Permitting.

  (b) Repeals.--
          (1) In general.--Title 51, United States Code, is amended as 
        follows:
                  (A) Subchapter III of chapter 601 is repealed.
                  (B) Section 60147 is repealed.
                  (C) The table of sections for chapter 601 is amended 
                by striking the item relating to section 60147.
                  (D) The table of sections for chapter 601 is amended 
                by striking the items relating to subchapter III.
          (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on the date that is 1 year after the date of 
        enactment of this Act.
  (c) Technical Corrections.--
          (1) In general.--Title 51, United States Code, is amended--
                  (A) in section 20302(c)(2), by striking ``means has 
                the meaning'' and inserting ``has the meaning'';
                  (B) in section 50702(c)(5), by striking ``Space-Based 
                Position'' and inserting ``Space-Based Positioning''; 
                and
                  (C) in section 71102(1), by striking ``tracking 
                device'' and inserting ``tracking device to''.
          (2) Chapter 513.--The table of chapters of title 51, United 
        States Code, is amended by striking the item related to chapter 
        513 and inserting the following:

``513. Space Resource Commercial Exploration and Utilization   51301''.

          (3) Chapter 701.--The table of chapters of title 51, United 
        States Code, is amended by striking the item related to chapter 
        701 and inserting the following:

``701. Use of Space Launch System or Alternatives...........   70101''.

SEC. 7. OFFICE OF SPACE COMMERCE.

  Section 50702 of title 51, United States Code, is amended--
          (1) in subsection (a), by adding at the end before the period 
        ``, which shall be located in the principal physical location 
        of the Office of the Secretary of Commerce'';
          (2) in subsection (b), by striking ``a senior executive and 
        shall be compensated at a level in the Senior Executive Service 
        under section 5382 of title 5 as determined by the Secretary of 
        Commerce'' and inserting ``appointed by the President and 
        confirmed by the Senate. The Director shall be the Assistant 
        Secretary of Commerce for Space Commerce and shall report 
        directly to the Secretary of Commerce''; and
          (3) in subsection (c)--
                  (A) in paragraph (4), by striking ``and'' at the end;
                  (B) in paragraph (5), by striking the period at the 
                end and inserting a semicolon; and
                  (C) by adding at the end the following:
          ``(6) to authorize and supervise the operations of United 
        States nongovernmental entities in outer space, pursuant to 
        chapter 801 of this title;
          ``(7) to authorize and supervise the operations of space-
        based remote sensing systems pursuant to chapter 802 of this 
        title; and
          ``(8) to facilitate and promote the development of best 
        practices among operators of space objects and space-based 
        remote sensing systems under this subtitle to address 
        substantial risks to the physical safety of Federal Government 
        space objects, including the risk of on-orbit collisions.''.

SEC. 8. RESTRICTION ON PREVENTING LAUNCHES AND REENTRIES OF CERTIFIED 
                    SPACE OBJECTS.

  Section 50904(c) of title 51, United States Code, is amended by 
adding at the end the following: ``No launch or reentry may be 
prevented under this authority on the basis of national security, 
foreign policy, or international obligations of the United States, 
including under the covered treaties on outer space (as defined in 
section 80101) if the payload has received a certification to operate 
as a space object under chapter 801.''.

SEC. 9. REPORT ON REGISTRATION OF SPACE OBJECTS.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Commerce, acting through the Office of Space 
Commerce and in consultation with the Private Space Activity Advisory 
Committee established under section 80109 of title 51, United States 
Code, 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 on the implementation of the 
space object registration obligations of the United States and other 
countries under Article VIII of the Outer Space Treaty and the 
Convention on Registration of Space Objects.
  (b) Contents of Report.--The report required under subsection (a) 
shall include--
          (1) an identification of the practices and procedures among 
        countries that are members of the Outer Space Treaty and the 
        Convention on Registration of Space Objects in implementing and 
        complying with the registration obligations contained in the 
        treaties;
          (2) a description of any existing practices and procedures of 
        the Federal Government for the registration of nongovernmental 
        space objects; and
          (3) recommendations on how the registration of space objects 
        in the United States could be improved to benefit the United 
        States, including enabling United States leadership in 
        commercial space activities.

SEC. 10. COMPTROLLER GENERAL REPORT.

  Not later than 180 days after the date of enactment of this Act, the 
Comptroller General of the United States shall submit to Congress a 
report on removing the Office of Commercial Space Transportation from 
under the jurisdiction of the Federal Aviation Administration and 
reestablishing the Office under the jurisdiction of the Secretary of 
Transportation. Such report shall include--
          (1) the identification of key practices for successful 
        organizational transitions;
          (2) the advantages and disadvantages of the removal and 
        reestablishment with respect to the ability of the Office to 
        continue to coordinate and communicate with Federal Aviation 
        Administration on airspace issues; and
          (3) the identification of any issues that are preventing the 
        Office from fully carrying out its statutory mandate, and if 
        such issues would persist regardless of organizational location 
        of the Office within the Department of Transportation.

                     Committee Statement and Views


                          PURPOSE AND SUMMARY

    The purpose of H.R. 2809, the ``American Space Commerce 
Free Enterprise Act,'' is to assure conformity with Outer Space 
Treaty obligations in the least burdensome manner possible. An 
additional purpose is to improve the international 
competitiveness of the U.S. by reforming the burdensome and 
inefficient space-based remote sensing regulatory system.

                  BACKGROUND AND NEED FOR LEGISLATION

    The U.S. is a Party to the Treaty on Principles Governing 
the Activities of States in the Exploration and Use of Outer 
Space, including the Moon and Other Celestial Bodies (``Outer 
Space Treaty''). Article VI of the Outer Space Treaty 
explicitly recognizes that non-governmental entities, such as 
private corporations, may explore and use outer space. Article 
I states, inter alia:

          ``Outer space, including the Moon and other celestial 
        bodies, shall be free for exploration and use by all 
        States without discrimination of any kind, on a basis 
        of equality and in accordance with international law, 
        and there shall be free access to all areas of 
        celestial bodies''

    Article IV then states, inter alia:

          ``States Parties to the Treaty shall bear 
        international responsibility for national activities in 
        outer space, including the Moon and other celestial 
        bodies, whether such activities are carried on by 
        governmental agencies or by non-governmental entities, 
        and for assuring that national activities are carried 
        out in conformity with the provisions set forth in the 
        present Treaty. The activities of non-governmental 
        entities in outer space, including the Moon and other 
        celestial bodies, shall require authorization and 
        continuing supervision by the appropriate State Party 
        to the Treaty.''

    In the U.S., a number of non-governmental entities are 
investing in and developing the capabilities to explore and use 
outer space in unique, novel, and unprecedented ways. This 
includes proposals by U.S. non-governmental entities to send 
robotic rovers to the surface of the Moon, to operate private 
space stations, to conduct on-orbit servicing and repairs, to 
prospect, extract, and utilize in-situ space resources, and to 
send private manned missions to the Moon, Mars, and beyond.
    This bill also advances the national interests of the U.S. 
by updating and reforming the regulatory regime governing 
space-based remote sensing space systems. The existing regime, 
established under the 1992 Land Remote Sensing Act, is outdated 
and broken. American industry is not able to receive 
authorizations for space-based remote sensing space systems in 
a timely fashion. While existing law requires license 
applications to be adjudicated in no more than 120 days, in 
some instances license applications have languished in 
interagency review for years. This is significantly damaging 
the pipeline of space-based remote sensing innovation in the 
U.S., incentivizing innovative companies to go overseas, and 
compromising U.S. national security. By addressing remote 
sensing while also reforming authorization and supervision 
under the Outer Space Treaty, this bill provides a streamlined 
and improved process for both general space operators and 
remote sensing operators.

                          LEGISLATIVE HISTORY

    During the 113th, 114th and 115th Congresses, the House 
Committee on Science, Space, and Technology held 14 hearings 
and seven markups relevant to this bill.
    On February 28, 2013, the Space Subcommittee held a hearing 
titled ``A Review of the Space Leadership Preservation Act'' to 
receive testimony on legislation (H.R. 6491) first introduced 
in the 115th Congress and re-introduced for the 115th Congress. 
This hearing informed the Committee's consideration of the 
policies, organization, programs, and budget in re-authorizing 
the National Aeronautics and Space Administration (NASA) this 
Congress. The Subcommittee heard testimony from The Honorable 
Frank R. Wolf, Chairman of the Commerce-Justice-Science 
Subcommittee, The Honorable John Culberson, Mr. A. Thomas 
Young, Chair of the Board for SAIC (testifying on his own 
behalf), and Mr. Elliot Pulham, Chief Executive Officer of The 
Space Foundation.
    On June 19, 2013, the Space Subcommittee held a hearing 
titled, ``NASA Authorization Act of 2013.'' The purpose of the 
hearing was to review a discussion draft of the NASA 
Authorization Act of 2013. The most recent NASA Authorization 
Act passed in 2010, authorized NASA for three years.
    On July 10, 2013, the Space Subcommittee met to consider 
H.R. 2687, the NASA Authorization Act of 2013. This measure 
contained many provisions that affect commercial space.
    On July 18, 2013, the Committee on Science, Space, and 
Technology met to consider H.R. 2687, the NASA Authorization 
Act of 2013. This measure contained many provisions that affect 
commercial space.
    On November 20, 2013, the Space Subcommittee held a hearing 
titled ``Commercial Space.'' The hearing examined ways that 
companies are utilizing federal support and government policies 
to grow their commercial businesses in space launch, 
communications, GPS, remote sensing, weather monitoring, 
suborbital tourism and science experimentation, and human 
spaceflight. The witnesses addressed what government policies 
would be helpful to the U.S. commercial space industry. 
Witnesses also addressed the policies contained in H.R. 3038, 
the Suborbital and Orbital Advancement and Regulatory 
Streamlining (SOARS) Act. The first witness panel consisted of 
the Honorable Kevin McCarthy, Majority Whip of the U.S. House 
of Representatives. The second panel consisted of: Ms. Patricia 
Cooper, President of the Satellite Industry Association; Mr. 
Stuart Witt, CEO and General Manager of the Mojave Air and 
Space Port; and Mr. Dennis Tito, Chairman of the Inspiration 
Mars Foundation.
    On February 4, 2014, the Space Subcommittee held a hearing 
titled ``Necessary Updates to the Commercial Space Launch 
Act.'' The industry has grown since the passage of the 
Commercial Space Launch Act of 1984 (P.L. 98-575) thirty years 
ago, and this law has been amended several times since then. 
The Commercial Space Launch Act (CSLA) provides authority to 
the FAA to license launches and indemnify launch providers from 
third-party claims should an accident occur. The law also 
provides a framework for the FAA's authority. This hearing 
examined the various changes in the industry and what, if any, 
accompanying changes to the CSLA may be needed going forward. 
The Committee heard from three witnesses: Dr. George Nield, 
Associate Administrator for Commercial Space Transportation at 
the Federal Aviation Administration; Dr. Alicia Cackley, 
Director of Financial Markets and Community Investment Team at 
the Government Accountability Office; and Dr. Henry Hertzfeld, 
Research Professor of Space Policy and International Affairs at 
the Elliot School of International Affairs at George Washington 
University.
    On March 27, 2014, the Space Subcommittee of the House 
Committee on Science, Space, and Technology held a hearing 
titled ``A Review of the National Aeronautics and Space 
Administration Budget for Fiscal Year 2015'' to review the 
Administration's fiscal year 2015 (FY15) budget request for 
NASA and examine its priorities and challenges. The hearing had 
one witness, the Honorable Charles F. Bolden, Jr., 
Administrator of NASA.
    On April 9, 2014, the Space Subcommittee met to consider 
H.R. 4412, the NASA Authorization Act of 2014. The Act 
contained several provisions regarding barriers to commercial 
use of space.
    On April 24, 2014, the Space Subcommittee held a hearing 
titled ``An Overview of the National Aeronautics and Space 
Administration Budget for Fiscal Year 2014'' with NASA 
Administrator Charles Bolden to review the Administration's FY 
2014 budget request for NASA and examine its priorities and 
challenges.
    On April 29, 2014, the Committee on Science, Space, and 
Technology met to consider H.R. 4412, the NASA Authorization 
Act of 2014. The Act contained several provisions regarding 
barriers to commercial use of space.
    On May 9, 2014, the Space Subcommittee held a hearing 
titled ``Space Traffic Management: How to Prevent a Real Life 
`Gravity'.'' There are currently three agencies that play a 
primary role in tracking and mitigation of orbital debris that 
may be hazardous to operational satellites, or life and 
property on Earth if the debris reentered the Earth's 
atmosphere. The Joint Functional Component Command for Space 
(JFCC SPACE), part of the Department of Defense (DoD), is 
responsible for tracking orbital debris, the Federal 
Communications Commission (FCC) asserts jurisdiction for 
mitigating orbital debris from communications satellites, and 
the Federal Aviation Administration (FAA) regulates orbital 
debris from launch and reentry activities. This hearing 
explored the roles and responsibilities of DoD, FAA, and FCC in 
policing orbital debris, what authorities are currently granted 
by Congress to federal agencies, and how they coordinate these 
activities. The Subcommittee heard from five witnesses: Lt. 
Gen. John ``Jay'' Raymond, Commander, 14th Air Force, Air Force 
Space Command, and Commander, Joint Functional Component 
Command for Space, U.S. Strategic Command; Mr. George Zamka, 
Deputy Associate Administrator, Office of Commercial Space 
Transportation, Federal Aviation Administration; Mr. Robert 
Nelson, Chief Engineer, International Bureau, Federal 
Communications Commission; Mr. P.J. Blount, Adjunct Professor, 
Air and Space Law, University of Mississippi School of Law; and 
Mr. Brian Weeden, Technical Advisor, Secure World Foundation.
    On September 10, 2014, the hearing titled ``Exploring Our 
Solar System: The ASTEROIDS Act as a Key Step'' gave the 
Committee an overview of the variety of issues facing the 
planetary science community, including challenges the community 
is facing due to the low inventories of Pu-238 for deep space 
missions, NASA's proposed budget for planetary science, and 
potential commercial interests. Witnesses were also asked to 
comment on H.R. 5063, the American Space Technology for 
Exploring Resource Opportunities In Deep Space (ASTEROIDS) Act. 
The Space Subcommittee heard from five witnesses: Dr. Jim 
Green, NASA Planetary Science Division Director; Dr. Jim Bell, 
Professor of Earth and Space Science Exploration, Arizona State 
University, and President, Board of Directors, The Planetary 
Society; Dr. Mark Sykes, CEO and Director, Planetary Science 
Institute; Professor Joanne Gabrynowicz, Professor Emerita, 
Director Emerita, Journal of Space Law Editor-in-Chief Emerita, 
University of Mississippi; Dr. Philip Christensen, Co-Chair, 
NRC Committee on Astrobiology and Planetary Science (CAPS), 
Chair, Mars Panel, NRC Planetary Decadal Survey, Regents 
Professor, Arizona State University.
    On April 16, 2015, the Space Subcommittee held a hearing 
titled ``An Overview of the Budget Proposal for the National 
Aeronautics and Space Administration for Fiscal Year 2016.'' 
The purpose of the hearing was to review the Administration's 
fiscal year 2016 (FY16) budget request for NASA and examine the 
Administration's priorities and challenges. The sole witness 
was the Honorable Charles F. Bolden, Jr., Administrator, NASA.
    On April 30, 2015, the Committee on Science, Space, and 
Technology met to consider H.R. 2039, the NASA Authorization 
Act for 2016 and 2017. This measure contained many provisions 
that affect commercial space.
    On May 13, 2015, the Committee on Science, Space, and 
Technology met to consider H.R. 2262, the Spurring Private 
Aerospace Competitiveness and Entrepreneurship Act of 2015; 
H.R. 1508, the Space Resource Exploration and Utilization Act 
of 2015; H.R. 2261, the Commercial Remote Sensing Act of 2015; 
and H.R. 2263, the Office of Space Commerce Act.'' H.R. 1508 
was amended to change the definition of ``asteroid resource'' 
and to further ensure the bill would remain consistent with 
existing international obligations. All four bills passed in 
the Committee.
    On November 17, 2015, the Space Subcommittee with the 
Environment Subcommittee held a hearing titled ``Exploring 
Commercial Opportunities to Maximize Earth Science 
Investments.'' The purpose of the hearing was to explore ways 
NASA can satisfy Earth science data requirements through 
public-private partnerships, including commercial capabilities. 
The subcommittees heard from five witnesses: Dr. Scot Pace, 
Director of the Space Policy Institute, George Washington 
University; Dr. Walter Scott, Founder and Chief Technical 
Officer, DigitalGlobe; Mr. Robbie Schingler, Co-Founder and 
President, PlanetLabs; Dr. Samuel Goward, Emeritus Professor of 
Geography, University of Maryland at College Park; Dr. Antonio 
Busalacchi, Professor and Director of the Earth System Science 
Interdisciplinary Center, University of Maryland.
    On March 17, 2016, the Space Subcommittee held a hearing 
titled ``An Overview of the Budget Proposal for the National 
Aeronautics and Space Administration for Fiscal Year 2017.'' 
The purpose of the hearing was to review the Administration's 
fiscal year 2017 (FY17) budget request for NASA. The sole 
witness was the Honorable Charles F. Bolden, Jr., 
Administrator, NASA.
    On April 19, 2016, the Space Subcommittee held a hearing 
titled ``The Commercial Space Launch Industry: Small Satellite 
Opportunities and Challenges.'' The purpose of the hearing was 
to examine the current state of the small satellite commercial 
launch industry. The Subcommittee heard from two witnesses: Mr. 
Elliot Pulham, Chief Executive Officer, Space Foundation; and 
Mr. Eric Stallmer, President, Commercial Spaceflight Federation 
(CSF).
    On September 7, 2016, the Space Subcommittee held a hearing 
titled ``Commercial Remote Sensing: Facilitating Innovation and 
Leadership.'' The purpose of the hearing was to examine the 
current state of the space-based remote sensing industry, 
including scientific and technical advances in the fields of 
space-to-earth and space-to-space remote sensing. Examples of 
remote sensing applications include mapping technologies, crop 
monitoring, natural resource exploration, and national 
security. The hearing also assessed existing U.S. law and 
regulation governing private remote sensing space systems, 
including whether there is a need to reform existing law and 
regulation. The subcommittee heard from five witnesses: Mr. 
Kevin O'Connell, President and CEO, Innovative Analytics and 
Training LLC, and Former Chair, Federal Advisory Committee on 
Commercial Remote Sensing (ACCRES); Mr. Kevin Pomfret, 
Executive Director, Centre for Spatial Law and Policy; Ms. 
Michele R. Weslander Quaid, President, Sunesis Nexus LLC; Mr. 
Michael Dodge, Assistant Professor, Department of Space 
Studies, University of North Dakota; and Ms. Joanne 
Gabrynowicz, Professor Emerita, University of Mississippi 
School of Law.
    On March 8, 2017, the Space Subcommittee held a hearing 
titled ``Regulating Space: Innovation, Liberty, and 
International Obligations.'' The purpose of the hearing was to 
examine U.S. international obligations in light of new and 
innovative space activities. The Subcommittee heard from five 
witnesses: Ms. Laura Montgomery, Attorney and Sole Proprietor, 
Ground Based Space Matters, LLC; Dr. Eli Dourado, Senior 
Research Fellow and Director, Technology Policy Program, 
Mercatus Center, George Mason University; Mr. Doug Loverro, 
Former Deputy Assistant Secretary of Defense for Space Policy; 
Mr. Dennis J. Burnett, Adjunct Professor of Law, University of 
Nebraska-Lincoln, College of Law; and Dr. Henry B. Hogue, 
Specialist in American National Government, Congressional 
Research Service.
    On June 8, 2017, the Space Subcommittee held a hearing 
titled ``An Overview of the National Aeronautics and Space 
Administration Budget for Fiscal Year 2018.'' The purpose of 
the hearing was to review the Administration's fiscal year 2018 
(FY18) budget request for NASA. The sole witness was Mr. Robert 
M. Lightfoot, Jr., Acting Administrator, NASA.
    On June 8, 2017, the Committee on Science, Space, and 
Technology met to consider H.R. 2809, the American Space 
Commerce Free Enterprise Act of 2017. This measure provides a 
transparent U.S. authorization and supervision certification 
process for non-governmental space activities that generates 
certainty for stakeholders and complies with Outer Space Treaty 
obligations and national security concerns in the least 
burdensome manner possible.

                            COMMITTEE VIEWS

Authorization and supervision of U.S. non-governmental entities in 
        space

    H.R. 2809 addresses authorization and supervision of non-
governmental U.S. entities (``U.S. entities''). It is not 
intended to apply to government operation of space objects. The 
U.S. government and the Executive Branch need not be subjected 
to the authorization and supervision authority, as established 
in H.R. 2809, to assure U.S. conformity with obligations under 
the Outer Space Treaty. The U.S. government assures conformity 
of its operations in the normal course of duties as provided by 
the Constitution and Federal law.

Freedom of U.S. entities to explore and use outer space is in the 
        national interest

    The freedom of U.S. entities to explore and use outer space 
is essential to the national interests of the United States.
    Outer space is a vast region of scientific and economic 
wealth. Humanity is only beginning to understand and realize 
its benefits. The U.S., along with other spacefaring nations, 
seeks to explore and use outer space and derive economic 
benefits from its utilization. U.S. leadership cannot be 
sustained by government investment alone. The U.S. must allow 
private sector innovation to ensure continued leadership in the 
exploration and use of outer space.
    Restricting the freedom of U.S. entities to explore and use 
outer space through executive branch regulatory authority 
should only be done when absolutely necessary, and when no 
other mechanism is available to address national interests. 
There are a number of existing legal mechanisms already 
available for the Executive Branch to exercise regulatory 
authority over and restrict the freedom of U.S. entities to 
explore and use outer space to address national interests. This 
includes regulatory authorities of the Department of Commerce, 
Department of State, Department of Transportation, the FCC, and 
the Treasury Department. Expanded regulatory authority is not 
necessary.
    A streamlined process will assure that the U.S. remains in 
conformity with its obligations under the Outer Space Treaty. 
Furthermore, existing regulatory authorities governing space-
based remote sensing systems are outdated, cumbersome, not 
serving the national interest, and are in need of reform.
    Providing a legal and policy environment of freedom will 
increase American competitiveness and attract companies, 
talent, and investment that otherwise would have gone to other 
countries. Companies have many options when it comes to 
evaluating where to incorporate, headquarter, manufacture, and 
operate. This ensures America and its workforce will benefit 
from the developing economy in outer space.

Authorization and supervision of space operations

    H.R. 2809 assures conformity with international obligations 
of the United States, pursuant to Article VI of Outer Space 
Treaty. It does so by establishing an authorization and 
supervision certification authority at the Department of 
Commerce that can condition or deny space operations to prevent 
violations of United States international obligations under the 
Outer Space Treaty. It does not grant authority to the 
Department of Commerce to authorize and supervise space 
operations to assure conformity with any or all international 
agreements or arrangements of the United States.
    The underlying policy rationale is that the space 
operations of U.S. entities should only be regulated, under a 
specific regime with the authority to condition or deny space 
operations, to assure conformity with Senate advised and 
consented, presidentially ratified treaties, pursuant to 
Section 2, Clause 2, of the U.S. Constitution. Absent this 
policy, other types of international agreements or arrangements 
of the United States could be entered into by the Executive 
Branch without the advice and consent of the Senate and 
thereafter used as a basis to condition or deny U.S. entity 
space operations. Such a wide grant of discretionary regulatory 
authority to the Executive Branch could undermine the 
constitutional principle of separation of powers, and more 
importantly, the freedom and liberty of United States entities 
to explore and use outer space. The Committee finds that only 
the Outer Space Treaty rises to this level today. If, in the 
future, other treaties are signed and ratified by the United 
States that obligate the United States to regulate U.S. entity 
space operations via domestic implementation of legislation, 
Congress may then legislate as appropriate.
    The Committee recognizes the United States is a Party to 
the Outer Space Treaty. Article VI of the Outer Space Treaty 
explicitly recognizes that non-governmental entities, such as 
private corporations, may explore and use outer space. Article 
I states, inter alia:

          ``Outer space, including the Moon and other celestial 
        bodies, shall be free for exploration and use by all 
        States without discrimination of any kind, on a basis 
        of equality and in accordance with international law, 
        and there shall be free access to all areas of 
        celestial bodies''

    Article IV then states, inter alia:

          ``States Parties to the Treaty shall bear 
        international responsibility for national activities in 
        outer space, including the Moon and other celestial 
        bodies, whether such activities are carried on by 
        governmental agencies or by non-governmental entities, 
        and for assuring that national activities are carried 
        out in conformity with the provisions set forth in the 
        present Treaty. The activities of non-governmental 
        entities in outer space, including the Moon and other 
        celestial bodies, shall require authorization and 
        continuing supervision by the appropriate State Party 
        to the Treaty.''

    In the U.S., a number of non-governmental entities are 
investing in and developing the capabilities to explore and use 
outer space in unique, novel, and unprecedented ways. This 
includes proposals by U.S. non-governmental entities to send 
robotic rovers to the surface of the Moon, to operate private 
space stations, to conduct on-orbit servicing and repairs, to 
prospect, extract, and utilize in-situ space resources, and to 
send private manned missions to the Moon, Mars, and beyond.
    While the existing regulatory framework in the United 
States has, to date, been sufficient to meet U.S. international 
obligations under Article VI of the Outer Space Treaty, there 
is uncertainty as to whether, in the future, the Executive 
Branch would prohibit non-governmental entities from conducting 
activities in space based on the Obama Administration's 
interpretation of United States obligations under the Outer 
Space Treaty.
    This uncertainty stems from an April 8, 2016, regulatory 
authorization by the Department of Transportation (DOT), FAA, 
for the launch of a payload for the company ``Moon Express.'' 
Specifically, the DOT/FAA stated that while the FAA made a 
favorable payload determination for this particular mission, 
not all non-traditional space missions may lend themselves to 
favorable payload determinations under the payload review 
authority under 51 U.S.C. 50904.
    No State Party to the Outer Space Treaty has ever issued a 
diplomatic demarche to the United States that existing domestic 
laws of the United States were insufficient or violated United 
States obligations to authorize and supervise non-governmental 
activities pursuant to Article VI.

Other Outer Space Treaties

    The Committee recognizes that the United States is a Party 
to the Convention on International Liability for Damage Caused 
by Space Objects, the Convention on Registration of Objects 
Launched in Outer Space, and Agreement on the Rescue of 
Astronauts, the Return of Astronauts and Return of Objects 
Launched in Outer Space (``other Space Treaties''). The 
Committee finds that these other Space Treaties do not 
implicate an obligation to authorize and supervise non-
governmental entities to assure conformity with their 
provisions either pursuant to their own text, generally 
accepted means of treaty interpretation, or Article VI of the 
Outer Space Treaty. The obligations and rights within these 
other Space Treaties are State specific responsibilities that 
do not require conditioning or denying the operations of U.S. 
entities (e.g. liability, registration, rescue and return of 
astronauts). At this time, no provisions of these other Space 
Treaties warrant regulating U.S. entity operations in outer 
space to assure conformity with such other Space Treaties.
    No State Party to these other Space Treaties has ever 
issued a diplomatic demarche to the United States that existing 
domestic laws of the United States were insufficient or 
violated United States obligations under these other Space 
Treaties.

Outer Space Treaty obligations are State-to-State obligations, not 
        private sector obligations

    The Outer Space Treaty is an agreement among States Party. 
H.R. 2809 assures that the activities of U.S. entities are 
carried out in conformity with the provisions set out in the 
Treaty. However, these provisions are obligations of the United 
States, not obligations of U.S. entities. Not all provisions 
should be interpreted to have any legal nexus to U.S. entity 
activities and not all provisions should be imputed upon U.S. 
entities. Pursuant to Sec. 80103(c)(2)(A), the Federal 
Government shall interpret and fulfill its international 
obligations under the Outer Space Treaty in a manner that 
minimizes regulations and limitations on the freedom of United 
States nongovernmental entities to explore and use space. This 
should inform determination of imputability. This obligation is 
reiterated in Sec. 80305. Likewise, pursuant to 
Sec. 80103(c)(2)(B), the Federal Government shall interpret and 
fulfill its international obligations under the Outer Space 
Treaty in a manner that promotes free enterprise in outer 
space.
    Rationale for Department of Commerce responsibility H.R. 
2809 places the responsibility to authorize and supervise 
private space activities to assure conformity with Outer Space 
Treaty obligations at the Office of Space Commerce in the 
Department of Commerce, not at DOT as proposed by the Obama 
Administration in the Section 108 report, required by P.L. 114-
90, delivered to this Committee on April 4, 2016. There are a 
number of reasons why placing this responsibility at the 
Department of Commerce is the appropriate long-term decision 
for the United States and its industry.
    Department of Commerce's culture is more aligned with space 
activities than DOT's regulatory culture. The mission statement 
of the Department of Commerce is to ``create the conditions for 
economic growth and opportunity,'' and that mission runs deep 
through the culture of the Commerce Department. Choosing DOT 
over the Department of Commerce may be more expedient in the 
short-term, but at the price foregoing of a long-term optimal 
solution. In the near term, some, but not all, planned 
activities may have a nexus to transportation. However, as the 
space economy develops, in-space activities will focus more on 
commerce, and less on transportation to and from Earth. The 
Department of Commerce is also accustomed to a number of issues 
that future stakeholders will need to consider such as 
international trade.
    Placing authority at Department of Commerce also 
consolidates bureaucracy by merging the Department of Commerce, 
Office of Space Commerce, and the Department of Commerce, 
Office of Commercial Space Sensing Regulatory Affairs, while 
also reforming the current broken space-based remote sensing 
regulatory process, and minimizing the burden on other 
agencies.
    Placing this authority at Department of Commerce 
establishes a ``one-stop shop'' for Outer Space Treaty 
compliance. Placing that authority within DOT would split the 
regulatory system. If DOT was granted this authority, remote 
sensing satellite operators would have to seek regulatory 
approval for their operations from two different organizations 
(the Department of Commerce and DOT).
    Placing this authority at the Department of Commerce is a 
continuation of long-standing law and national policy. The 
Department of Commerce is currently responsible for regulating 
a subset of space activities, space-based remote sensing. 
Indeed, since 1984, the Department of Commerce has been the 
only Federal agency with the legal authority to authorize and 
supervise outer space activities. The FCC is authorized to 
regulate spectrum transmission and DOT is authorized to 
regulate launch and re-entry vehicle activities, but neither of 
them have the legal authority to authorize and supervise 
private space activities to assure compliance with the Outer 
Space Treaty.
    Current law prohibits DOT from regulating outer space 
activities generally or space object operations beyond the 
launch and re-entry of space vehicles. It only has the ability 
to deny a launch if no license, authorization, or permit is 
required for the payload and the payload jeopardizes specific 
interests of the United States. The payload review authority at 
DOT was not intended nor designed to facilitate an 
authorization or supervision process for Article VI Outer Space 
Treaty compliance. Even if such an authority were granted to 
DOT, new processes, regulations, personnel, and funding would 
be needed for implementation.
    Regarding fiscal and staffing requirements, in fiscal year 
2017 the Department of Commerce's Commercial Remote Sensing 
Regulatory Affairs Office works with five full-time equivalent 
employees and a budget of $1.2 million. In fiscal year 2017, 
the Office of Space Commerce has three full-time equivalent 
employees and a budget of $800,000. H.R. 2809 will abolish the 
Commercial Remote Sensing Regulatory Affairs Office and move 
its responsibilities, budget, and as appropriate, staff, into 
the Office of Space Commerce. H.R. 2809 will streamline remote-
sensing regulatory processes and as a result, require less 
staffing to implement. It is anticipated there will be staffing 
and fiscal efficiencies gained by the implementation of H.R. 
2809 that can be used to offset any possible additional costs 
the Department of Commerce will face while implementing 
responsibilities under Chapter 801 of the bill. H.R. 2809 
authorizes up to $5 million in fiscal year 2018 and fiscal year 
2019. The Committee believes that reforming the existing space-
based remote sensing regulatory process, combined with 
efficiencies gained by a streamlined, minimally burdensome, 
certification process under Chapter 801 of H.R. 2809, and 
minimizing the administrative burden on DOT for future payload 
reviews, will result in savings for the taxpayer as compared to 
staffing and funds used under existing authorities at 
Department of Commerce and DOT.
    The Committee fully supports DOT and the Office of Space 
Transportation. However, in this time of rapid technological 
change that the launch industry is experiencing, the Committee 
finds that DOT and Office of Space Transportation should focus 
their attention on licensing launch and reentry. They should 
not be responsible for authorizing and supervising private 
space object operations.

Planetary Protection

    Pursuant to our international obligations under the Outer 
Space Treaty, operations may be conditioned or denied by the 
Secretary of Commerce, in consultation with appropriate 
agencies such as NASA at the Secretary's discretion, to prevent 
violations of U.S. obligation under Article IX of the Outer 
Space Treaty.
    Article IX states, inter alia:

          ``In the exploration and use of outer space, 
        including the Moon and other celestial bodies, States 
        Parties to the Treaty shall be guided by the principle 
        of cooperation and mutual assistance and shall conduct 
        all their activities in outer space, including the Moon 
        and other celestial bodies, with due regard to the 
        corresponding interests of all other States Parties to 
        the Treaty. States Parties to the Treaty shall pursue 
        studies of outer space, including the Moon and other 
        celestial bodies, and conduct exploration of them so as 
        to avoid their harmful contamination and also adverse 
        changes in the environment of the Earth resulting from 
        the introduction of extraterrestrial matter and, where 
        necessary, shall adopt appropriate measures for this 
        purpose.''

    H.R. 2809 posits long-standing United States policy, 
confirmed by both the Department of State and NASA, that 
Committee on Space Research (COSPAR) planetary protection 
guidelines are not international obligations of the United 
States and are not legally binding. The United States and 
relevant stakeholders, including the scientific community and 
industry, should work together as activities expand beyond 
scientific exploration and use, to address mutual interests, 
and develop reasonable practices that take into account the 
need to avoid harmful contamination with the right to explore 
and use outer space. To date, no non-governmental entity has 
sent a robotic or manned mission to another celestial body. It 
is premature to proscribe COSPAR guidelines as binding 
international law. Instead, we should be guided by the 
principles of the Outer Space Treaty and avail ourselves to the 
flexibility these principles provide as State and private 
sector practice develops.
    The Committee finds that Article IX of the Outer Space 
Treaty does not posit a legal obligation of scientific 
preservation of outer space or celestial bodies. The Committee 
also recognizes that there is not agreement on whether the 
obligation to avoid harmful contamination lies only with the 
States Parties, or whether non-governmental entities are 
similarly obligated.

Certification

    The Committee recognizes that the term certification in the 
aviation and expendable launch vehicle context carries a 
presumption of technical regulation. It is not the intent for 
the term certification in H.R. 2809 to have that meaning. On 
the contrary, the intent is for the term certification to be 
interpreted as confirmation of first-party attestations of 
conformity with Outer Space Treaty obligations.

Registration of space objects

    The Committee recognizes that the United States has not 
implemented in domestic legislation a national registry of 
space objects. The State Department reported to the Committee 
that long-standing national practice has been for the State 
Department to maintain a registry of space objects for the 
purposes of satisfying Article VIII of the Outer Space Treaty 
and U.S. obligations under the Convention on Registration of 
Objects Launched in Outer Space.
    H.R. 2809 calls for a report on the registration of space 
objects. This report would include recommendations on if, and 
how, the registration of space objects in the U.S. could be 
improved to benefit the United States.

Need for reform of 1992 Land Remote Sensing Act and space-based remote 
        sensing regulation

    H.R. 2809 reforms provisions of the 1992 Land Remote 
Sensing Act governing the regulation of space-based remote 
sensing systems. The current regulatory system provides 
applicants with very little transparency or appeal process. 
Despite a statutory 120-day deadline for application 
adjudication, some applications have not been adjudicated for 
years. The current process harms the national security of the 
United States by forcing companies and technologies overseas, 
inhibiting insight into the capabilities and operations of 
those departing companies, stifling innovation and the 
commensurate workforce, jobs, and economic benefits, and 
limiting the domestic capabilities that can be shared with 
allies and utilized by combatant commanders.
    U.S. policy and regulatory mechanisms need to be updated to 
reflect the current state of technology, as well as evolving 
market factors. Furthermore, the reformed process should 
anticipate newer developments with an eye toward efficient and 
objective regulation and incentive creation for U.S. industry. 
Any perceived national security concerns associated with 
commercial remote sensing needs to be put into the context of a 
complex and interconnected world, and appreciate that 
geospatial information has tremendous economic, societal, 
environmental and governmental value. The commercial remote 
sensing industry is now part of a larger, global geospatial 
information community.
    Under the legal and regulatory structure established by 
H.R. 2809, the United States can continue to shape global 
developments through technical innovation, modern business 
processes, and by encouraging new applications. Industry would 
be incentivized to pursue new concepts, which serve both as a 
source of leverage and experimentation in a cutting-edge field. 
Failure to adapt our mindset, especially given the global 
nature of commercial remote sensing, will push U.S. remote 
sensing providers offshore to more favorable regulatory 
environments.

Definition of space-based remote sensing system

    Under existing federal law, ``space-based remote sensing 
system'' is not defined. Under existing federal regulations (15 
C.F.R. 960.3), a remote sensing system is defined as:

          ``any device, instrument, or combination thereof, the 
        space-borne platform upon which it is carried, and any 
        related facilities capable of actively or passively 
        sensing the Earth's surface, including bodies of water, 
        from space by making use of the properties of the 
        electromagnetic waves emitted, reflected, or diffracted 
        by the sensed objects.''

    The existing regulatory definition requires the system to 
be capable of actively or passively sensing the Earth's 
surface.
    The Committee is aware that, in practice, the Department of 
Commerce has regulated space-based remote sensing systems that, 
while capable of remotely sensing the Earth's surface, are, in 
fact, designed to remotely sense space objects in Earth orbit. 
Furthermore, the Committee is aware that the application of 
this existing regulatory definition, coupled with a lack of 
statutory definition, is creating legal and regulatory 
uncertainty as new and innovative private space-based remote 
sensing systems are proposed.
    The definition of space-based remote system adopted in H.R. 
2809 seeks to address the lack of statutory definition, provide 
certainty for remote sensing operators, and address national 
security concerns. The Committee's intent is that the phrase 
``designed to image the Earth'' is limited to instruments 
designed to remotely sense the Earth's surface. The Committee's 
intent is that the phrase ``capable of imaging a space object 
in Earth orbit operated by the Federal Government'' is limited 
to systems capable of remotely imaging a space object in Earth 
orbit. It is also not intended to capture Federal Government 
space objects that are in Earth orbit that are not operational, 
for any reason, including because they are derelict or 
abandoned.
    The Committee recognizes that some space-based remote 
sensing systems will not fall within either definition. The 
Committee is aware of proposed commercial remote sensing 
systems that are not designed to image the Earth and are 
incapable of imaging U.S. Government objects in orbit. In those 
instances, the intent of H.R. 2809 is to not require a 
commercial remote sensing permit under chapter 802 of the bill, 
but it is the Committee's intent to require space object 
certification under chapter 801. This construct provides 
certainty for applicants in the least burdensome manner, 
conforms to U.S. obligations under the Outer Space Treaty, and 
advances U.S. national security.

Not all Space-Based Remote Sensing Systems will be Space Objects

    H.R. 2809 was designed to give maximum flexibility to 
space-based remote sensing system permit applicants to decide 
when, and if at all, space object certification is required 
under chapter 801.
    Some space-based remote sensing systems will also be space 
objects for the purposes of chapter 801 certification 
requirements. In this instance, the space-based remote sensing 
system applicant can choose whether to file chapter 801 and 
chapter 802 applications concurrently, or at different times, 
subject to the requirements of having a certificate or permit 
prior to operation.
    However, some space-based remote sensing systems will not 
be a space object, as defined in H.R. 2809, and therefore will 
not be subject to a chapter 801 certification requirement. For 
example, a space-based remote sensing system may be a hosted 
payload on a space object. In this case, the space object that 
is hosting will either be certified by the U.S. government to 
operate (in accordance with U.S. international obligations 
under the Outer Space Treaty) or a foreign government will be 
responsible for the operation of the space object (as it is 
either a foreign space object or a U.S. space object that 
demonstrates pursuant to Sec. 80110 that another State Party to 
the Treaty authorized the space object operations). In either 
of these cases, the U.S. space-based remote sensing system will 
only be subject to a chapter 802 permit requirement, as chapter 
801 is intended to satisfy Article VI of the Outer Space Treaty 
requirements that the appropriate State Party to the Treaty 
authorize and supervise non-governmental space activities. The 
Committee believes that when a remote sensing payload is 
integrated into a free-flying space object, the international 
legal obligations within the Outer Space Treaty are imbued upon 
the State authorizing the operation of the space object, not 
the State authorizing the remote sensing operations. The 
Committee recognizes that in the future, novel circumstances 
may arise in which space-based remote sensing systems are part 
of unique space object systems that host, provide power, or do 
various other services in support of the remote sensing system. 
Nonetheless, the public policy H.R. 2809 adopts is that for the 
purposes of the Outer Space Treaty, it is the authorizer of the 
space object hosting the remote sensing system that is 
responsible for Outer Space Treaty compliance, not the United 
States authorizing the remote sensing system for the purposes 
of national security.

Sec. 80201(d) De Minimis Exception

    The intent of this provision is to grant the Secretary 
discretionary authority to exclude certain types of space-based 
remote sensing systems and lessen the regulatory burden on the 
private sector and the Executive Branch. For example, star 
trackers are intended to be considered ``ancillary to the 
primary design purpose of the space object.'' Digital handheld 
cameras are an example of an intended system that is ``too 
trivial to require a determination under section 80202(c).''
    The Committee directs the Secretary to promulgate 
regulatory guidance to provide a clear explanation of the 
criteria to be used by the Secretary to grant a de minimis 
waiver.

Sec. 80201(f) Prohibition of Operation

    H.R. 2809 grants a broader scope of jurisdiction for the 
Secretary under chapter 802 as compared to chapter 801.
    Under chapter 801, U.S. entities require a certification 
prior to operation of a space object. This does not include 
foreign subsidiaries and affiliates of a U.S. entity. 
Furthermore, no foreign entities are allowed to receive a 
chapter 801 certification. The rationale is that the Outer 
Space Treaty requires the ``appropriate State Party'' to 
authorize and supervise non-governmental space activities and 
that the ``appropriate State Party'' is the State from which a 
person is a citizen or in which a legal entity (e.g. 
corporation) exists. If a State chooses to allow foreign wholly 
owned subsidiaries in their jurisdiction and allows these legal 
entities to operate space objects that is their choice. 
However, such a choice carries consequences under the Outer 
Space Treaty, and such a State that allows such activity is the 
appropriate State Party to the Treaty to authorize and 
supervise.
    But under chapter 802, the United States equity is national 
security, not Outer Space Treaty conformity. Therefore, the 
scope of jurisdiction is broader than chapter 802 and states 
that ``no person may, directly or through any subsidiary or 
affiliate, operate a space-based remote sensing system without 
a permit issued under H.R. 2809.'' This scope of jurisdiction 
is the exact same language under existing law (51 U.S.C. 
60122(a)).

Sec. 80202(a)(2)(D) Information Necessary to make a Determination

    The overall national security policy of H.R. 2809 is that 
U.S. national security is furthered, not when U.S. industry is 
restricted, but when it leads the rest of the world. The 
Committee recognizes that this policy needs to also take into 
account the need of the U.S. national security community to be 
empowered with information about planned space object and 
space-based remote-sensing system operations so that the 
national security community can plan accordingly for the 
operation of such private and commercial systems. Of particular 
importance is information about planned space-based remote 
sensing operations. For this reason, Sec. 80202(a)(2)(D) allows 
for a permit application to include ``any additional 
information necessary to make a determination under subsection 
(c) regarding a significant threat to national security.'' 
However, the Committee is aware that requests for information 
can be abused and result in delay and obstructed permit 
application adjudications. For this reason, such information 
must be prescribed in advance by regulation.
    The Committee is aware that it is not feasible for such 
prescription to include system specific information for any 
future permit applicant. The intent is for the information to 
be prescribed within reasonable bounds so that applicants and 
the Secretary (and as appropriate, other Department and Agency 
heads consulted) have clear expectations of information 
requirements for a permit application to be complete. Such 
prescription must also be sufficiently clear to meet legal 
requirements under the Administrative Procedures Act and 
constitutional provisions of Due Process. This is not intended 
to be an unbound authority to ask for any information from an 
applicant. The Committee will also monitor the nature of such 
information requests through oversight to ensure that this 
authority is not abused.

Non-delegable determinations

    H.R. 2809 prohibits certain determinations under chapter 
801 and chapter 802 from being delegated by the Secretary of 
Commerce. The intent is not to have the Secretary themselves 
process paperwork or conduct day-to-day Office of Space 
Commerce operations. The intent is that the Secretary, and only 
the Secretary, is authorized to sign a determination. While the 
Committee recognizes that such a signature will require 
Department of Commerce staff to communicate with and provide 
rationales for such a determination to the Secretary for the 
Secretary's consideration, the Committee finds this is 
appropriate given a public policy goal of H.R. 2809 is to 
enhance regulatory accountability.

Clear and convincing evidence standard

    H.R. 2809 used the term ``clear and convincing evidence.'' 
The intent of this terminology is to direct the Secretary to 
provide evidence that supports a firm belief or conviction that 
it is highly probable that the factual contentions of the 
determination are true.

Significant threat to national security

    Existing law provides the Secretary of Commerce with the 
ability to condition or deny a space-based remote sensing 
system license ``to preserve the national security of the 
United States.'' This existing legal standard has proven to be 
damaging to the U.S. industrial base and the long-term national 
security interests of the United States. Without a rational and 
reasonable standard to interpret this authority, there is no 
limitation on how it can be applied.
    H.R. 2809 adopts a different legal standard as defined in 
Sec. 80202(c)(2), specifically ``significant threats to 
national security.'' ``Significant threats to national 
security'' is conditioned with the requirement of 
``imminence.'' Imminence is intended to include threats that 
will manifest almost immediately upon the beginning of proposed 
operations or shortly thereafter.
    Significant threats to national security is also 
conditioned with the requirement that the threat ``cannot 
practicably be mitigated though changes to Federal Government 
activities or operations.'' The Committee is concerned that the 
Federal Government is currently incentivized to delay 
applications out of an abundance of caution. While there may be 
no risk to national security, government officials are only 
tasked with reviewing the negative impacts of a proposed 
system, not the positive impact to U.S. national security, nor 
the negative impacts to national security of stifling U.S. 
leadership. Similarly, the U.S. has an obligation to adapt and 
evolve its tactics, techniques, and procedures to account for 
technological modernization. While U.S. national security is 
compromised by a myopic approach to private sector 
technological innovation, national security is strengthened by 
a permissive environment that attracts technologies to the U.S. 
and affords the federal government greater insight into 
commercial remote sensing capabilities and operations.
    The intent is that the Secretary, in consultation as the 
Secretary considers necessary with the heads of other relevant 
agencies, will assess proposed permit applicant operations in 
light of Federal Government activities and operations as known 
today and forecasted to be happening at the time of proposed 
permit applicant operations. This assessment is for the 
purposes of determining whether any identified significant 
threats to U.S. national security can be practicably mitigated 
by changes to Federal Government activities or operations.
    The policy rationale is that the Executive Branch should 
not force an applicant to change their operations or deny their 
operation unless the Executive Branch took the time to see if 
there were practical ways for the Federal Government to address 
national security concerns. This is not meant to be an 
unreasonable burden for the Federal Government. The Secretary, 
in consultation as the Secretary considers necessary with the 
heads of other relevant agencies, has the discretionary 
authority to find there are not practical ways to mitigate. 
H.R. 2809 does not define the scope of practicality and intends 
for the Secretary to exercise discretionary authority in a 
reasonable way to balance the interests of the Federal 
Government with the need to mitigate.
    Throughout our society, the government must adapt to an 
evolving technological landscape. Space is no different. By 
adjusting to private sector progress, rather than stifling 
innovation, the United States will remain at the forefront of 
this emerging field. This, in turn, will allow U.S. government 
insight into cutting-edge capabilities and operations, as well 
as the ability to respond and evolve to new challenges.

Commercially available capability

    The Committee finds it is unreasonable and against the 
national interests of the United States to condition or deny 
space-based remote sensing system operations if there is 
already a commercially available capability. Commercial 
availability must take into account not just what is available 
at the time of a permit application, but also what is 
reasonably expected to be made available in the next three 
years. This is important because of the nature of space 
systems, which require significant lead-time to design, 
manufacture, launch, and calibrate. This will allow the U.S. to 
maintain leadership in the commercial remote sensing market, 
rather than a perpetual laggard. U.S. national security is 
compromised by adopting regulatory policies that stifle 
innovation and force the nation to follow rather than lead. The 
existing policy also limits U.S. insight into commercial remote 
sensing systems that are forced overseas into more favorable 
regulatory environments.
    The Committee understands that the President currently 
maintains a database of commercially available capabilities and 
that it will not be a significant administrative burden for the 
Executive Branch to use and update the existing database to 
meet the requirements of Sec. 80202(e). Furthermore, the 
Executive Branch routinely tracks the state of the commercial 
space sector for many different purposes. This survey could 
easily leverage those efforts.

Interagency consultation

    The Committee is well aware of the need for the Secretary 
to be able to consult with other Departments and Agencies as 
the Secretary executes the duties to make determinations under 
H.R. 2809. The Committee recognizes that absent any specific 
statutory language, the Secretary would be imbued with organic 
authority to communicate with and consult with other 
Departments and Agencies. Nonetheless, H.R. 2809 posits in 
statutory language a consultation mechanism for the Secretary 
to consult with the heads of other relevant agencies as the 
Secretary considers necessary.
    While the Secretary shall consult, the decision as to 
whether or not a consultation is necessary resides with the 
Secretary, not with the relevant agency to be consulted. 
Furthermore, the Secretary retains exclusive authority to 
authorize, place conditions on, and supervise the operations of 
space objects under chapter 801 and space-based remote sensing 
system under chapter 802. The rationale is that only the 
Secretary is legally responsible for authorizing and 
supervising these operations. The decision to vest this 
authority in a single Department is informed by Committee 
oversight of the existing regulatory process for commercial 
remote sensing, which imbues authority on three separate 
agencies. This failed process led to delays in agency 
adjudication, stifled innovation, and the departure of 
companies overseas.
    The Committee recognizes that the Secretary may need to 
consult with the heads of other relevant agencies. The 
Committee anticipates the Secretary, under the guidance of the 
President, will establish via inter-agency memorandum or other 
Executive Branch directives, clear procedures for the Secretary 
to communicate with, and consult with, the heads of other 
relevant agencies.
    The rationale for this consultation policy is to prevent 
inter-agency abuse of authorities and to prevent other agencies 
from, in practice, exercising a de-facto regulatory authority. 
The Committee is aware that in practice the legal directive 
``to consult'' may in fact be implemented as a ``coordinate'' 
or a ``concurrence'' requirement, undermining the policy 
rationale of the H.R. 2809. The Committee intends to conduct 
diligent oversight of the implementation of this provision to 
ensure that this does not occur.

Sec. 80202(b)(3) Interagency processes

    The Committee recognizes that in order to carry out an 
orderly adjudication of license applications within the 90 day 
time frame provided, subject to a Presidential extension of an 
additional 60 days, the Administration will need to organize an 
interagency process that provides for timely elevation and 
resolution of policy issues. The Committee anticipates that the 
Secretary of Commerce, in consultation with the Secretary of 
Defense and other departments and agencies as appropriate, will 
develop interagency arrangements to carry out the authorities 
granted to the Administration under this Act.

Sec. 80203(c) Update to permit

    It is the intent of the Committee that a review warranted 
under this section due to material change shall be subject to 
the authority of the President to grant a 60 day extension 
pursuant to Sec. 80202(b)(4)

Department of Transportation authority

    H.R. 2809, section 8, is a continuation of long-standing 
law and congressional intent with regards to the scope of DOT's 
legal authority under 51 U.S.C. 50904(c). This intent, as 
evidenced in the law and in Committee report language 
accompanying the Commercial Space Launch Act of 1984, is that 
DOT should not act contrary to a national security or foreign 
policy (including international obligations) determination made 
by another agency in the course of granting an approval for a 
payload by such agency. In order to prevent confusion regarding 
DOT's legal authority under 51 U.S.C. 50904(c), H.R. 2809, 
section 8, codifies that no launch or reentry may be prevented 
under this authority on the basis of national security, foreign 
policy, or international obligations of the United States if 
the payload has received a certification to operate as a space 
object under chapter 801.

Federal Communications Commission authority

    The Committee believes that since an effective regulatory 
process already exists for communications satellites, a 
duplicative process exercised by the Department of Commerce 
would be unnecessary and unjustified. H.R. 2809 is not intended 
to supersede the provisions of the Communications Act of 1934, 
as amended, or its implementing regulations or executive 
orders. H.R. 2809 does not grant FCC authority for the 
regulation of space operations beyond the purview of its 
existing exercised authority over space transmitting stations 
licensed under the Communications Act of 1934. The Committee 
will conduct diligent oversight to ensure that authority is 
interpreted in a manner to expand the FCC's authority in space 
beyond what Congress intended.

Sec. 80302 Safety consultation

    The Committee recognizes that risk of collision among space 
objects in a growing threat to the safety and sustainability of 
certain Earth orbit regimes. The Committee, informed in part by 
testimony provided by former Deputy Assistant Secretary of 
Defense for Space Policy, Mr. Doug Levero (provided on March 
8th, 2017), concludes that granting legal authority to the 
Executive Branch to regulate the operation of space objects for 
the purposes of collision avoidance is premature at this time 
and would not be in the national interests. However, the 
Committee believes that establishing a consultation forum 
between space object operators, certified pursuant to H.R. 
2809, and federal government space object operators, is 
warranted at this time and will be useful to mitigate 
substantial risks of collision between such operators.
    Sec. 80302 grants the Secretary of Commerce the authority 
to require U.S. entity participation in the consultation. 
However, any outcome of the consultation is voluntary and 
Sec. 80302 does not grant the Secretary of Commerce the 
authority to regulate, or place conditions on, any activity for 
which a certification or permit is required under H.R. 2809.
    The Committee purposely chose to time this consultation to 
occur after a certification under chapter 801 is issued. 
Allowing this consultation to occur during the adjudication of 
a certification application would create a chilling effect on 
the applicant and undermine the voluntary nature of the 
consultation. Similarly, it is not logical to require 
consultation on proposed operations that have not yet received 
authorization, unless such proposed operations are authorized 
to be conditioned or denied on the basis of risks of 
collisions.
    The Committee emphasizes that Sec. 80302 consultations 
carry the force of law and the Secretary can require a U.S. 
entity to participate. This legal authority does not stop the 
Executive Branch or U.S. entities from engaging in other 
communications or consultations, on a voluntary basis, outside 
the scope of Sec. 80302. If, after the Sec. 80302 consultation, 
a U.S. entity voluntary chooses to change their proposed 
operations, H.R. 2809 allows such changes to be made and if 
material, to be subject to additional administrative review by 
the Secretary of Commerce. The Committee is also aware of how 
this authority could be abused, and will closely monitor its 
use.

Sec. 80111 Protecting the interests of United States entity space 
        objects

    The intent of this provision is to direct the President to 
use, within reasonable means, the power of the Executive 
Branch, particularly diplomatic and economic, to protect the 
interests of United States entity space objects. This provision 
is not intended to create new requirements for the President to 
train, fund, or equip armed forces. It is also not intended to 
bind the President's discretion to use force to protect U.S. 
national interests.
    Sec. 80111(3) is intended to direct the President to take a 
leadership role in developing the normative understanding of 
due regard under Article IX of the Outer Space Treaty and to 
ensure U.S. entities operating in outer space are given such 
due regard. Article IX of the Outer Space Treaty states that: 
``[States Party] shall conduct all their activities in outer 
space, including the moon and other celestial bodies, with due 
regard to the corresponding interests of all other States 
Parties to the Treaty.'' However, there is no definition and 
little State practice to inform how this principle should be 
developed and applied, particularly as it relates to 
substantive legal obligations of other States Party to the 
Outer Space Treaty. It is in the interest of the United States 
to take a leadership role, along with U.S. private sector 
stakeholders, in developing an understanding of due regard that 
is in the interests of the United States, including its 
commercial and private space actors.

Sec. 80309 Global commons

    The Committee is aware that space is sometimes referred to 
as a ``global commons.'' The Committee believes this is legally 
inaccurate and undermines the national interests of the United 
States. The Committee specifically drafted this language to 
prohibit the application of extraneous statutes such as the 
National Environmental Policy Act to outer space.

Need to address space situational awareness and related policy issues

    The Committee is aware that there are outstanding policy 
issues involving space situational awareness and the safety of 
space operations on orbit. The Committee specifically chose not 
to address these policy issues in this bill because the 
Committee does not believe that sufficient due diligence has 
been conducted to warrant addressing these policy issues in an 
authorization and supervision mechanism. This does not preclude 
the Committee addressing these policy issues in future 
legislation.

Harmful interference to U.S. entity space objects

    The Act recognizes that harmful interference is an issue 
and addresses it in a number of ways. For foreign harmful 
interference, the Act directs the President to protect U.S. 
entities interests. The Act also provides that Federal courts 
shall have jurisdiction over any civil action resulting from 
operating a certificated space object. This allows U.S. 
entities to seek judicial remedy, including civil suits, on the 
basis of common law torts, to protect against and end harmful 
interference. The Act directs the Secretary to report on the 
certification of space objects. Part of this report assesses 
how certification could be improved to enable U.S. leadership 
in commercial space activities. This may include an examination 
of how registration can be used to mitigate or prevent harmful 
interference. FCC currently has legal authority to address 
harmful interference caused by electromagnetic spectrum usage. 
FCC's authority stands and is untouched by the Act.
    However, the Committee is aware that as private space 
activities develop, there may be a need to more comprehensively 
address concerns of harmful interference. H.R. 2809 directs the 
Private Space Activity Advisory Committee to report annually on 
challenges the private sector is experiencing with harmful 
interference to private sector activities in outer space. The 
Committee intends to follow these reports carefully and address 
such concerns as necessary in future legislation.

Claims of sovereignty

    This title does not grant the Secretary the authority to 
authorize U.S. entities to claim sovereignty over outer space 
or any celestial bodies.

Federal court jurisdiction

    Federal courts are granted original jurisdiction of any 
civil action resulting from the operation of a space object for 
which certification or permit is required under H.R. 2809. 
Federal courts are not granted jurisdiction over outer space, 
the Moon, or other celestial bodies.

                           Section-by-Section


Section 1. Short title; table of contents

    The ``American Space Commerce Free Enterprise Act.''

Section 2. Findings; policy; purposes

    This Act resolves and curtails authorities regarding 
private exploration and use of outer space and streamlines 
existing processes. This Act enhances compliance with 
international obligations, removes regulatory barriers, and 
improves U.S. competitiveness.
    In addition, this Act updates and reforms the regulatory 
regime governing space-based remote sensing space systems. The 
existing regime, established under the 1992 Land Remote Sensing 
Act, is outdated and broken. American industry is not able to 
receive authorizations for space-based remote sensing space 
systems in a timely fashion. This section establishes a 
streamlined and improved process for both general space 
operators and remote sensing operators. It also allows the Act 
to address threats to U.S. national security that may arise due 
to the operations of space objects that include remote sensing 
systems.

Section 3. Certification to operate space objects

    This section amends Title 51 to include authorization and 
supervision of nongovernmental space activities. Certification 
authority is granted to the Secretary of Commerce one year 
after enactment to issue certifications for the operations of a 
U.S. space object.
    The Act provides certification conditions in legislation. 
Industry will know exactly what is required to satisfy a 
certification application. Supervision of certified activities 
is satisfied by filing updates on material changes.
    The Act assures conformity with the Outer Space Treaty, 
providing that the U.S. is the appropriate State Party to 
authorize and continually supervise U.S. entity space object 
operations, unless another State Party to the Treaty has 
authorized such operations. U.S. obligations under the Outer 
Space Treaty are responsibilities of the U.S. government, not 
its private citizens.
    The Secretary of Commerce and the Office of Space Commerce 
(DOC/OSC) have the responsibility to certify and permit 
operations, not DOT.
    The Act recognizes that space debris and on-orbit collision 
are concerns and established a number of practical mechanisms 
to address space debris and on-orbit collision. The Act 
requires space debris operations to be conducted under a debris 
mitigation and disposal plan. This plan is to take into account 
Inter-Agency Space Debris Coordination Committee (IADC) and 
U.S. space debris mitigation guidelines. For avoiding 
collisions on-orbit, the Act establishes a consultation for 
certificated space operators and federal operators to address 
risks of collisions on-orbit. The Assistant Secretary for Space 
Commerce is also directed to facilitate and promote the 
development of best practices to address substantial risks to 
the physical safety of certificated space operators and federal 
operators.
    This Act only affects DOT authority to license launch and 
reentry activities in the payload review of authorized U.S. 
entity payloads. The Act provides that a space object whose 
operations are certificated by DOC/OSC is not subject to a 
payload review for national security, foreign policy, or 
international obligations by DOT. DOT retains the authority to 
conduct a payload review for public health and safety and the 
safety of property.
    FCC authority to license telecommunication satellites 
remains unaffected. This section provides an exception 
specifically to protect existing telecommunication satellite 
operators licensed by FCC and to allow FCC to maintain its 
existing authority. Telecommunication satellite operators will 
not need to register with the Office of Space Commerce.
    Under this section, the Secretary of Commerce is directed 
to establish a Private Space Activity Advisory Committee of 15 
appointed members. This Committee will oversee nongovernmental 
space activities, certification processes, and promote private 
sector investment and development in operating space objects. 
An annual report is due from the Committee regarding their 
duties and recommendations. The Committee will be terminated 10 
years after establishment.
    Existing payloads approved under a DOT license are 
grandfathered into the new system. Existing DOT licenses and 
associated payload approvals remain in force. Payloads approved 
under an existing license have the right to apply for an 
authorization under the new registration and permitting process 
at DOC/OSC.
    The Act recognizes that harmful interference is an issue 
and addresses it in a number of ways. The Act directs the 
President to protect U.S. entities interests and provides that 
Federal courts shall have jurisdiction over any civil action 
resulting from operating a certificated space object. This 
allows U.S. entities to seek judicial remedy, including civil 
suits, on the basis of common law torts, to protect against 
harmful interference. FCC currently has legal authority to 
address harmful interference caused by electromagnetic spectrum 
usage. FCC's authority stands and is untouched by the Act.

Section 4. Permitting of space-based remote sensing systems

    The Act improves U.S. international competitiveness by 
reforming burdensome and inefficient space-based remote sensing 
regulatory system.
    The Act provides a clear and narrow definition of space-
based remote sensing space systems, creates a presumption of 
approval, provides a streamlined permitting process, refines 
authority of DOC/OSC to place conditions for national security, 
and requires adjudication of permit applications within 90 
days.
    The Act allows identified national security risks to be 
addressed by conditioning space-based remote sensing 
operations. However, the Act requires the Federal government to 
first attempt to mitigate these national security risks before 
placing any such conditions on private actors.
    This section amends Title 51 to permit space-based remote 
sensing systems, no later than one year after enactment.
    Existing licensees at NOAA (National Oceanic and 
Atmospheric Administration) are grandfathered into the new 
system. Existing NOAA licenses remain in force, which includes 
any associated conditions. Existing licensees have the right to 
re-apply for an authorization under the new certification and 
permitting process at DOC/OSC.
    A report is due 180 days after enactment detailing all 
applications received, and all permits given, denied, and 
overdue. This section also requires the Secretary to establish 
an Advisory Committee on Commercial Remote Sensing. This 
Committee will provide information, advice, and recommendations 
for U.S. commercial space-based remote sensing activities and 
industry. The Committee is required to submit a report 
including their information, analysis, findings, and 
recommendations. The Committee will be terminated 10 years 
after establishment.

Section 5. Administrative provisions related to certification and 
        permitting

    This section amends Title 51 to add administrative 
provisions related to certification and permitting. This 
includes restricting civil penalties to $10,000 each day of 
violation, and to $500,000 in total for noncompliance. This 
section also outlines an appeals process for certification of 
permits and establishes regulatory authority. Outer space is 
not to be considered a global commons.
    For avoiding collisions on-orbit, the Act establishes a 
consultation for registered space operators and federal 
operators to address substantial risks of collisions on-orbit. 
The Secretary is granted enforcement authority. There is no 
cost for a certification or permit. Existing regulatory 
authority from DOT and FCC for determinations of international 
obligations are granted to DOC/OSC.
    The Secretary shall undertake appropriate consultations 
with other Federal agencies in carrying out the duties of the 
Secretary under this Act.
    The Secretary of Commerce will have one year to implement 
the law and promulgate appropriate regulations.
    The Act authorizes to be appropriated $5 million to the 
Office of Space Commerce for fiscal year 2018.

Section 6. Technical and conforming amendments

    This section amends Title 51 to accommodate for the Act's 
changes.

Section 7. Office of space commerce

    This section amends Section 50702 of Title 51 to create an 
Assistant Secretary of Space Commerce to authorize and 
supervise the operations of U.S. nongovernmental entities in 
outer space.
    The Office of Space Commerce, which will be located within 
the Office of the Secretary of Commerce, is the administrative 
unit responsible for certificating space operations and 
permitting space-based remote sensing systems. This section 
consolidates existing offices, thereby creating operational 
efficiencies.

Section 8. Restriction on preventing launches and reentries of 
        certified space objects

    This section amends Section 50904(c) of Title 51 to remove 
existing DOT authority to regulate space activities of U.S. 
entities for national security, foreign policy, or 
international obligation purposes for any space object 
authorized under this Act, except in the case of U.S. launch 
public safety and property protection authority.

Section 9. Report on registration of space objects

    This Act directs the Secretary of Commerce to report to 
Congress within one year on how the registration of space 
objects under the U.S. domestic registry or under the United 
Nations registry could be improved to benefit the U.S., 
including enabling U.S. leadership in commercial space 
activities.

Section 10. Comptroller general report

    The Act recognizes FAA AST's growing importance to the 
commercial space industry. In that light, the Act directs the 
Government Accountability Office to submit a report on removing 
AST from the FAA and elevating it to the jurisdiction of the 
Secretary of Transportation. A report is due 180 days after 
enactment on removing the Office of Commercial Space 
Transportation from under the jurisdiction of the FAA and 
reestablishing it under the jurisdiction of the Secretary of 
Transportation.

Section 11. Radiofrequency mapping report

    This section requires a report due 180 days after enactment 
on space-based radiofrequency mapping.

                       Explanation of Amendments

    An amendment offered by Mr. Smith made technical 
corrections to the bill. Among these, the amendment extended 
the time the Secretary of Commerce has to adjudicate 
certificate and permit applications from ``60'' to ``90'' days. 
The amendment also expresses that the Secretary of Commerce 
``shall'' consult, as the Secretary considers necessary, with 
the heads of other relevant agencies. The amendment was 
adopted.
    An amendment offered by Mr. Bridenstine added a section 
requiring the Government Accountability office to report on the 
costs and benefits of elevating FAA's Office of Commercial 
Space Transportation within DOT. The amendment was adopted.
    An amendment offered by Mr. Perlmutter required the Private 
Sector Advisory Committee to identify any challenges the U.S. 
private sector experiences with access to adequate, predictable 
and reliable radio frequency spectrum. The amendment was 
adopted.

                        Committee Consideration

    On June 8, 2017, the Committee met in open session and 
ordered reported favorably the bill, H.R. 2809, as amended, by 
voice vote, a quorum being present.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill assures conformity with international obligations of 
the United States, pursuant to Article VI of the Outer Space 
Treaty. As such this bill does not relate to employment or 
access to public services and accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    H.R. 2809, the American Space Commerce Free Enterprise Act, 
assures conformity with international obligations of the United 
States, pursuant to Article VI of the Outer Space Treaty.

                    Duplication of Federal Programs

    No provision of H.R. 2809 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    H.R. 2809 assures conformity with international obligations 
of the United States, pursuant to Article VI of Outer Space 
Treaty. It does so by establishing an authorization and 
supervision certification authority at the Department of 
Commerce that can condition or deny space operations to prevent 
violations of United States international obligations under the 
Outer Space Treaty.
    Further, H.R. 2809 reforms provisions of the 1992 Land 
Remote Sensing Act governing the regulation of space-based 
remote sensing systems. The current regulatory system provides 
applicants with very little transparency or appeal process. 
Despite a statutory 120-day deadline for application 
adjudication, some applications have been not been adjudicated 
for years. The current process harms the national security of 
the United States by forcing companies and technologies 
overseas, inhibiting insight into the capabilities and 
operations of those departing companies, stifling innovation 
and the commensurate workforce, jobs, and economic benefits, 
and limiting the domestic capabilities that can be shared with 
allies, and utilized by combatant commanders.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         Earmark Identification

    H.R. 2809 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 2809. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 2809 from the Director of 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, July 7, 2017.
Hon. Lamar Smith,
Chairman, Committee on Science, Space, and Technology,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2809, the American 
Space Commerce Free Enterprise Act of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Janani 
Shankaran.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 2809--American Space Commerce Free Enterprise Act of 2017

    H.R. 2809 would expand the authorities of the Office of 
Space Commerce (OSC) within the Department of Commerce (DOC) to 
include supervision of commercial space activity. The private 
sector is increasingly investing in and developing spacecraft, 
satellites, and other technologies for nongovernmental 
exploration of outer space. H.R. 2809 would establish a 
certification process for the private sector to operate those 
objects in outer space. The bill also would eliminate the 
Office of Commercial Remote Sensing Regulatory Affairs (CRSRA) 
within the National Oceanic and Atmospheric Administration and 
transfer some of its responsibilities to the OSC. H.R. 2809 
would authorize the appropriation of $5 million in 2018 for the 
OSC to undertake those activities.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing H.R. 2809 would cost $5 million 
over the 2018-2019 period. In fiscal year 2017, the CRSRA and 
the OSC each received an appropriation of about $1 million. 
Under current law, no specific sums are authorized to be 
appropriated to the CRSRA after 2017.
    The bill also would direct the President to maintain a 
database of commercially available capabilities for space-based 
remote sensing, for example, satellites; require DOC to 
undertake activities related to international treaty 
compliance; and have the Government Accountability Office 
submit a report to the Congress about the Office of Commercial 
Space Transportation. Based on the costs to undertake similar 
activities, CBO estimates that implementing those provisions 
would cost less than $500,000 each year; such spending would be 
subject to the availability of appropriated funds.
    Enacting the bill would affect direct spending and 
revenues; therefore, pay-as-you-go procedures apply. CBO 
expects that some CRSRA employees could retire earlier than 
they otherwise would, which would increase direct spending over 
the 2017-2027 period. However, CBO estimates that those 
increases would not be significant. The bill also would repeal 
certain penalties, which are recorded in the budget as 
revenues, and authorize new ones. On net, CBO estimates that 
those changes would not significantly affect revenues.
    CBO estimates that enacting H.R. 2809 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2028.
    H.R. 2809 would impose intergovernmental and private-sector 
mandates, as defined in the Unfunded Mandates Reform Act 
(UMRA). The bill would require entities that launch and operate 
spacecraft, satellites, or other objects in outer space to 
submit information about their planned launch operations, as 
well as a plan to mitigate space debris, to DOC when applying 
for certification to operate those objects. The requirements 
would affect both private space companies, such as Moon Express 
and SpaceX, as well as public entities, such as universities 
conducting research. After receiving certification, those 
entities also would be required to inform DOC about any 
material changes to the space object or the planned operations. 
In addition, the bill would require entities that apply for a 
permit to operate a space-based remote sensing system to 
provide specific information about the project to DOC. Based on 
information from companies in the space industry about the 
costs of complying with current regulations, CBO estimates that 
the total cost of complying with the mandates would fall well 
below the annual thresholds for intergovernmental and private-
sector mandates established in UMRA ($78 million and $156 
million in 2017, respectively, adjusted annually for 
inflation).
    The CBO staff contacts for this estimate are Janani 
Shankaran (for federal costs), Jon Sperl (for intergovernmental 
mandates), and Paige Piper/Bach (for private-sector mandates). 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) 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 italic, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 51, UNITED STATES CODE



                           Subtitle I--General

Chap                                                                Sec.
      Definitions..................................................10101
     * * * * * * *

         Subtitle V--Programs Targeting Commercial Opportunities

     * * * * * * *
      Space resource commercial exploration and utilization.......51301]
      Space Resource Commercial Exploration and Utilization........51301
     * * * * * * *

                      Subtitle VII--Access to Space

      Use of space launch system or alternatives..................70101]
      Use of Space Launch System or Alternatives...................70101
     * * * * * * *

 Subtitle VIII--Authorization and Supervision of Nongovernmental Space 
                               Activities

      Certification to Operate Space Objects.......................80101
      Permitting of Space-Based Remote Sensing Systems.............80201
80301dministrative Provisions Related to Certification and Permitting.

           *       *       *       *       *       *       *


SUBTITLE II--GENERAL PROGRAM AND POLICY PROVISIONS

           *       *       *       *       *       *       *


CHAPTER 203--RESPONSIBILITIES AND VISION

           *       *       *       *       *       *       *


Sec. 20302. Vision for space exploration

  (a) In General.--The Administrator shall establish a program 
to develop a sustained human presence in cis-lunar space or on 
the Moon, including a robust precursor program, to promote 
exploration, science, commerce, and United States preeminence 
in space, and as a stepping-stone to future exploration of Mars 
and other destinations. The Administrator is further authorized 
to develop and conduct appropriate international collaborations 
in pursuit of these goals.
  (b) Future Exploration of Mars.--The Administrator shall 
manage human space flight programs, including the Space Launch 
System and Orion, to enable humans to explore Mars and other 
destinations by defining a series of sustainable steps and 
conducting mission planning, research, and technology 
development on a timetable that is technically and fiscally 
possible, consistent with section 70504.
  (c) Definitions.--In this section:
          (1) Orion.--The term ``Orion'' means the multipurpose 
        crew vehicle described under section 303 of the 
        National Aeronautics and Space Administration 
        Authorization Act of 2010 (42 U.S.C. 18323).
          (2) Space launch system.--The term ``Space Launch 
        System'' [means has the meaning] has the meaning given 
        the term in section 3 of the National Aeronautics and 
        Space Administration Authorization Act of 2010 (42 
        U.S.C. 18302).

           *       *       *       *       *       *       *


SUBTITLE V--PROGRAMS TARGETING COMMERCIAL OPPORTUNITIES

           *       *       *       *       *       *       *


CHAPTER 507--OFFICE OF SPACE COMMERCE

           *       *       *       *       *       *       *


Sec. 50702. Establishment

  (a) In General.--There is established within the Department 
of Commerce an Office of Space Commerce, which shall be located 
in the principal physical location of the Office of the 
Secretary of Commerce.
  (b) Director.--The Office shall be headed by a Director, who 
shall be [a senior executive and shall be compensated at a 
level in the Senior Executive Service under section 5382 of 
title 5 as determined by the Secretary of Commerce] appointed 
by the President and confirmed by the Senate. The Director 
shall be the Assistant Secretary of Commerce for Space Commerce 
and shall report directly to the Secretary of Commerce.
  (c) Functions of Office.--The Office shall be the principal 
unit for the coordination of space-related issues, programs, 
and initiatives within the Department of Commerce, including--
          (1) to foster the conditions for the economic growth 
        and technological advancement of the United States 
        space commerce industry;
          (2) to coordinate space commerce policy issues and 
        actions within the Department of Commerce;
          (3) to represent the Department of Commerce in the 
        development of United States policies and in 
        negotiations with foreign countries to promote United 
        States space commerce;
          (4) to promote the advancement of United States 
        geospatial technologies related to space commerce, in 
        cooperation with relevant interagency working groups; 
        [and]
          (5) to provide support to Federal Government 
        organizations working on Space-Based Positioning 
        Navigation, and Timing policy, including the National 
        Coordination Office for [Space-Based Position] Space-
        Based Positioning, Navigation, and Timing[.];
          (6) to authorize and supervise the operations of 
        United States nongovernmental entities in outer space, 
        pursuant to chapter 801 of this title;
          (7) to authorize and supervise the operations of 
        space-based remote sensing systems pursuant to chapter 
        802 of this title; and
          (8) to facilitate and promote the development of best 
        practices among operators of space objects and space-
        based remote sensing systems under this subtitle to 
        address substantial risks to the physical safety of 
        Federal Government space objects, including the risk of 
        on-orbit collisions.
  (d) Duties of Director.--The primary responsibilities of the 
Director in carrying out the functions of the Office shall 
include--
          (1) promoting commercial provider investment in space 
        activities by collecting, analyzing, and disseminating 
        information on space markets, and conducting workshops 
        and seminars to increase awareness of commercial space 
        opportunities;
          (2) assisting United States commercial providers in 
        the efforts of those providers to conduct business with 
        the United States Government;
          (3) acting as an industry advocate within the 
        executive branch of the Federal Government to ensure 
        that the Federal Government meets the space-related 
        requirements of the Federal Government, to the fullest 
        extent feasible, using commercially available space 
        goods and services;
          (4) ensuring that the United States Government does 
        not compete with United States commercial providers in 
        the provision of space hardware and services otherwise 
        available from United States commercial providers;
          (5) promoting the export of space-related goods and 
        services;
          (6) representing the Department of Commerce in the 
        development of United States policies and in 
        negotiations with foreign countries to ensure free and 
        fair trade internationally in the area of space 
        commerce; and
          (7) seeking the removal of legal, policy, and 
        institutional impediments to space commerce.

           *       *       *       *       *       *       *


CHAPTER 509--COMMERCIAL SPACE LAUNCH ACTIVITIES

           *       *       *       *       *       *       *


Sec. 50904. Restrictions on launches, operations, and reentries

  (a) Requirement.--A license issued or transferred under this 
chapter, or a permit, 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 50902(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 50902(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 50902(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.
Notwithstanding this subsection, a permit shall not authorize a 
person to operate a launch site or reentry site.
  (b) Compliance With Payload Requirements.--The holder of a 
license or permit 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 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. No 
launch or reentry may be prevented under this authority on the 
basis of national security, foreign policy, or international 
obligations of the United States, including under the covered 
treaties on outer space (as defined in section 80101) if the 
payload has received a certification to operate as a space 
object under chapter 801.
  (d) Single License or Permit.--The Secretary of 
Transportation shall ensure that only 1 license or permit is 
required from the Department of Transportation to conduct 
activities involving crew, government astronauts, or space 
flight participants, including launch and reentry, for which a 
license or permit is required under this chapter. The Secretary 
shall ensure that all Department of Transportation regulations 
relevant to the licensed or permitted activity are satisfied.

           *       *       *       *       *       *       *


SUBTITLE VI--EARTH OBSERVATIONS

           *       *       *       *       *       *       *


                CHAPTER 601--LAND REMOTE SENSING POLICY

                          SUBCHAPTER I--GENERAL

Sec.
60101. Definitions.
     * * * * * * *

 [SUBCHAPTER SUBCHAPTER III--LICENSING OF PRIVATE REMOTE SENSING SPACE 
                                 SYSTEMS

[60121. General licensing authority.
[60122. Conditions for operation.
[60123. Administrative authority of Secretary.
[60124. Regulatory authority of Secretary.
[60125. Agency activities.
[60126. Annual reports.]

                    SUBCHAPTER V--GENERAL PROVISIONS

     * * * * * * *
[60147. Consultation.]

           *       *       *       *       *       *       *


   [SUBCHAPTER III--LICENSING OF PRIVATE REMOTE SENSING SPACE SYSTEMS

[Sec. 60121. General licensing authority

  [(a) Licensing Authority of Secretary.--
          [(1) In general.--In consultation with other 
        appropriate United States Government agencies, the 
        Secretary is authorized to license private sector 
        parties to operate private remote sensing space systems 
        for such period as the Secretary may specify and in 
        accordance with the provisions of this subchapter.
          [(2) Limitation with respect to system used for other 
        purposes.--In the case of a private space system that 
        is used for remote sensing and other purposes, the 
        authority of the Secretary under this subchapter shall 
        be limited only to the remote sensing operations of 
        such space system.
  [(b) Compliance With Law, Regulations, International 
Obligations, and National Security.--
          [(1) In general.--No license shall be granted by the 
        Secretary unless the Secretary determines in writing 
        that the applicant will comply with the requirements of 
        this chapter, any regulations issued pursuant to this 
        chapter, and any applicable international obligations 
        and national security concerns of the United States.
          [(2) List of requirements for complete application.--
        The Secretary 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 subchapter. 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.
  [(d) Improper Basis for Denial.--The Secretary shall not deny 
such license in order to protect any existing licensee from 
competition.
  [(e) Requirement To Provide Unenhanced Data.--
          [(1) Designation of data.--The Secretary, in 
        consultation with other appropriate United States 
        Government agencies and pursuant to paragraph (2), 
        shall designate in a license issued pursuant to this 
        subchapter any unenhanced data required to be provided 
        by the licensee under section 60122(b)(3) of this 
        title.
          [(2) Preliminary determination.--The Secretary shall 
        make a designation under paragraph (1) after 
        determining that--
                  [(A) such data are generated by a system for 
                which all or a substantial part of the 
                development, fabrication, launch, or operations 
                costs have been or will be directly funded by 
                the United States Government; or
                  [(B) it is in the interest of the United 
                States to require such data to be provided by 
                the licensee consistent with section 
                60122(b)(3) of this title, after considering 
                the impact on the licensee and the importance 
                of promoting widespread access to remote 
                sensing data from United States and foreign 
                systems.
          [(3) Consistency with contract or other 
        arrangement.--A designation made by the Secretary under 
        paragraph (1) shall not be inconsistent with any 
        contract or other arrangement entered into between a 
        United States Government agency and the licensee.

[Sec. 60122. Conditions for operation

  [(a) License Required for Operation.--No person that is 
subject to the jurisdiction or control of the United States 
may, directly or through any subsidiary or affiliate, operate 
any private remote sensing space system without a license 
pursuant to section 60121 of this title.
  [(b) Licensing Requirements.--Any license issued pursuant to 
this subchapter shall specify that the licensee shall comply 
with all of the requirements of this chapter 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 60146 of this title;
          [(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;
          [(3) make unenhanced data designated by the Secretary 
        in the license pursuant to section 60121(e) of this 
        title available in accordance with section 60141 of 
        this title;
          [(4) upon termination of operations under the 
        license, make disposition of any satellites in space in 
        a manner satisfactory to the President;
          [(5) furnish the Secretary with complete orbit and 
        data collection characteristics of the system, and 
        inform the Secretary immediately of any deviation; and
          [(6) notify the Secretary of any significant or 
        substantial agreement the licensee intends to enter 
        with a foreign nation, entity, or consortium involving 
        foreign nations or entities.
  [(c) Additional Licensing Requirements for Landsat 6 
Contractor.--In addition to the requirements of subsection (b), 
any license issued pursuant to this subchapter to the Landsat 6 
contractor shall specify that the Landsat 6 contractor shall--
          [(1) notify the Secretary of any value added 
        activities (as defined by the Secretary by regulation) 
        that will be conducted by the Landsat 6 contractor or 
        by a subsidiary or affiliate; and
          [(2) if such activities are to be conducted, provide 
        the Secretary with a plan for compliance with section 
        60141 of this title.

[Sec. 60123. Administrative authority of Secretary

  [(a) Functions.--In order to carry out the responsibilities 
specified in this subchapter, the Secretary may--
          [(1) grant, condition, or transfer licenses under 
        this chapter;
          [(2) seek an order of injunction or similar judicial 
        determination from a district court of the United 
        States with personal jurisdiction over the licensee to 
        terminate, modify, or suspend licenses under this 
        subchapter and 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 chapter, with any terms, conditions, 
        or restrictions of such license, or with any 
        international obligations or national security concerns 
        of the United States;
          [(3) provide penalties for noncompliance with the 
        requirements of licenses or regulations issued under 
        this subchapter, including civil penalties not to 
        exceed $10,000 (each day of operation in violation of 
        such licenses or regulations constituting a separate 
        violation);
          [(4) compromise, modify, or remit any such civil 
        penalty;
          [(5) issue subpoenas for any materials, documents, or 
        records, or for the attendance and testimony of 
        witnesses for the purpose of conducting a hearing under 
        this section;
          [(6) seize any object, record, or report pursuant to 
        a warrant from a magistrate based on a showing of 
        probable cause to believe that such object, record, or 
        report was used, is being used, or is likely to be used 
        in violation of this chapter or the requirements of a 
        license or regulation issued thereunder; and
          [(7) make investigations and inquiries and administer 
        to or take from any person an oath, affirmation, or 
        affidavit concerning any matter relating to the 
        enforcement of this chapter.
  [(b) Review of Agency Action.--Any applicant or licensee that 
makes a timely request for review of an adverse action pursuant 
to paragraph (1), (3), (5), or (6) of subsection (a) shall be 
entitled to adjudication by the Secretary on the record after 
an opportunity for any agency hearing with respect to such 
adverse action. Any final action by the Secretary under this 
subsection shall be subject to judicial review under chapter 7 
of title 5.

[Sec. 60124. Regulatory authority of Secretary

  [The Secretary may issue regulations to carry out this 
subchapter. Such regulations shall be promulgated only after 
public notice and comment in accordance with the provisions of 
section 553 of title 5.

[Sec. 60125. Agency activities

  [(a) License Application and Issuance.--A private sector 
party may apply for a license to operate a private remote 
sensing space system which utilizes, on a space-available 
basis, a civilian United States Government satellite or vehicle 
as a platform for such system. The Secretary, pursuant to this 
subchapter, may license such system if it meets all conditions 
of this subchapter and--
          [(1) the system operator agrees to reimburse the 
        Government in a timely manner for all related costs 
        incurred with respect to such utilization, including a 
        reasonable and proportionate share of fixed, platform, 
        data transmission, and launch costs; and
          [(2) such utilization would not interfere with or 
        otherwise compromise intended civilian Government 
        missions, as determined by the agency responsible for 
        such civilian platform.
  [(b) Assistance.--The Secretary may offer assistance to 
private sector parties in finding appropriate opportunities for 
such utilization.
  [(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.
  [(d) Applicability.--This section does not apply to 
activities carried out under subchapter IV.
  [(e) Effect on FCC Authority.--Nothing in this subchapter 
shall affect the authority of the Federal Communications 
Commission pursuant to the Communications Act of 1934 (47 
U.S.C. 151 et seq.).

[Sec. 60126. Annual reports

  [(a) In General.--The Secretary shall submit a report to the 
Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Science, Space, and Technology of 
the House of Representatives not later than 180 days after the 
date of enactment of the U.S. Commercial Space Launch 
Competitiveness Act, and annually thereafter, on--
          [(1) the Secretary's implementation of section 60121, 
        including--
                  [(A) a list of all applications received in 
                the previous calendar year;
                  [(B) a list of all applications that resulted 
                in a license under section 60121;
                  [(C) a list of all applications denied and an 
                explanation of why each application was denied, 
                including any information relevant to the 
                interagency adjudication process of a licensing 
                request;
                  [(D) a list of all applications that required 
                additional information; and
                  [(E) a list of all applications whose 
                disposition exceeded the 120 day deadline 
                established in section 60121(c), the total days 
                overdue for each application that exceeded such 
                deadline, and an explanation for the delay;
          [(2) all notifications and information provided to 
        the Secretary under section 60122; and
          [(3) a description of all actions taken by the 
        Secretary under the administrative authority granted by 
        paragraphs (4), (5), and (6) of section 60123(a).
  [(b) Classified Annexes.--Each report under subsection (a) 
may include classified annexes as necessary to protect the 
disclosure of sensitive or classified information.
  [(c) Sunset.--The reporting requirement under this section 
terminates effective September 30, 2020.]

           *       *       *       *       *       *       *


SUBCHAPTER V--GENERAL PROVISIONS

           *       *       *       *       *       *       *


[Sec. 60147. 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 chapter 
affecting national security. The Secretary of Defense shall be 
responsible for determining those conditions, consistent with 
this chapter, 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) In general.--The Secretary and the Landsat 
        Program Management shall consult with the Secretary of 
        State on all matters under this chapter affecting 
        international obligations. The Secretary of State shall 
        be responsible for determining those conditions, 
        consistent with this chapter, 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) International aid.--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.
          [(3) Reporting discriminatory distribution.--The 
        Secretary of State shall promptly report to the 
        Secretary and Landsat Program Management any instances 
        outside the United States of discriminatory 
        distribution of Landsat data.
  [(c) Status Report.--The Landsat Program Management shall, as 
often as necessary, provide to Congress complete and updated 
information about the status of ongoing operations of the 
Landsat system, including timely notification of decisions made 
with respect to the Landsat system in order to meet national 
security concerns and international obligations and policies of 
the United States Government.
  [(d) Reimbursements.--If, as a result of technical 
modifications imposed on a licensee under subchapter III 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 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.]

           *       *       *       *       *       *       *


                     SUBTITLE VII--ACCESS TO SPACE

CHAPTER 711--NEAR-EARTH OBJECTS

           *       *       *       *       *       *       *


Sec. 71102. Requests for information

  The Administrator shall issue requests for information on--
          (1) a low-cost space mission with the purpose of 
        rendezvousing with, attaching a tracking device to, and 
        characterizing the Apophis asteroid; and
          (2) a medium-sized space mission with the purpose of 
        detecting near-Earth objects equal to or greater than 
        140 meters in diameter.

           *       *       *       *       *       *       *


 Subtitle VIII--AUTHORIZATION AND SUPERVISION OF NONGOVERNMENTAL SPACE 
                               ACTIVITIES

          CHAPTER 801--CERTIFICATION TO OPERATE SPACE OBJECTS

Sec.
80101. Definitions.
80102. Certification authority.
80103. Certification application and requirements.
80104. Mitigation of space debris.
80105. Continuing certification requirements.
80106. Certification transfer.
80107. Certification expiration and termination.
80108. Existing license or pending application for launch or reentry.
80109. Private Space Activity Advisory Committee.
80110. Exemptions.
80111. Protecting the interests of United States entity space objects.

Sec. 80101. Definitions

  In this subtitle:
          (1) Agency.--The term ``agency'' has the meaning 
        given the term Executive agency in section 105 of title 
        5.
          (2) Agreement on the rescue of astronauts and the 
        return of space objects.--The term ``Agreement on the 
        Rescue of Astronauts and the Return of Space Objects'' 
        means the Agreement on the Rescue of Astronauts, the 
        Return of Astronauts and the Return of Objects Launched 
        into Outer Space (signed at Washington, Moscow, and 
        London on April 22, 1968, ratified by the United States 
        on December 3, 1968; 19 UST 7570).
          (3) Convention on registration of space objects.--The 
        term ``Convention on Registration of Space Objects'' 
        means the Convention on Registration of Objects 
        Launched into Outer Space (signed at New York on 
        January 14, 1975, ratified by the United States on 
        September 15, 1976; 28 UST 695).
          (4) Covered treaties on outer space.--The term 
        ``covered treaties on outer space'' means--
                  (A) the Outer Space Treaty;
                  (B) the Agreement on the Rescue of Astronauts 
                and the Return of Space Objects;
                  (C) the Convention on Registration of Space 
                Objects; and
                  (D) the Liability Convention.
          (5) Liability convention.--The term ``Liability 
        Convention'' means the Convention on the International 
        Liability for Damage Caused by Space Objects (signed at 
        Washington, Moscow, and London on March 29, 1972, 
        ratified by the United States on October 9, 1973; 24 
        UST 2389).
          (6) National of the united states.--The term 
        ``national of the United States'' has the meaning given 
        such term in section 101(a) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)).
          (7) Outer space treaty.--The term ``Outer Space 
        Treaty'' means the Treaty on Principles Governing the 
        Activities of States in the Exploration and Use of 
        Outer Space, including the Moon and Other Celestial 
        Bodies (signed at Washington, Moscow, and London on 
        January 27, 1967, ratified by the United States on 
        October 10, 1967; 18 UST 2410).
          (8) Secretary.--The term ``Secretary'' means, except 
        as otherwise provided in this subtitle, the Secretary 
        of Commerce, acting through the Office of Space 
        Commerce.
          (9) Space-based remote sensing system.--The term 
        ``space-based remote sensing system'' means a space 
        object in Earth orbit that is--
                  (A) designed to image the Earth; or
                  (B) capable of imaging a space object in 
                Earth orbit operated by the Federal Government.
          (10) Space debris mitigation.--The term ``space 
        debris mitigation'' means efforts to--
                  (A) prevent on-orbit break-ups;
                  (B) remove spacecraft that have reached the 
                end of their mission operation from useful 
                densely populated orbit regions; and
                  (C) limit the amount of debris released 
                during normal operations of a space object.
          (11) Space object.--
                  (A) In general.--The term ``space object'' 
                means--
                          (i) a human-made object located in 
                        outer space, including on the Moon and 
                        other celestial bodies, with or without 
                        human occupants, that was launched from 
                        Earth, such as a satellite or a 
                        spacecraft, including component parts 
                        of the object; and
                          (ii) all items carried on such object 
                        that are intended for use in outer 
                        space outside of, and independent of, 
                        the operation of such object.
                  (B) Inclusion.--Such term includes any human-
                made object that is--
                          (i) manufactured or assembled in 
                        outer space; and
                          (ii) intended for operations in outer 
                        space outside of, and independent of, 
                        the operations of such object in which 
                        the manufacturing or assembly occurred.
                  (C) Exclusions.--Such term does not include--
                          (i) an article on board a space 
                        object that is only intended for use 
                        inside the space object;
                          (ii) an article manufactured or 
                        processed in outer space that is a 
                        material; or
                          (iii) an article intended for use 
                        outside of a space object as part of 
                        the certified operations of the space 
                        object.
          (12) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United 
        States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and any 
        other commonwealth, territory, or possession of the 
        United States.
          (13) United states.--The term ``United States'' means 
        the States, collectively.
          (14) United states entity.--The term ``United States 
        entity'' means--
                  (A) an individual who is a national of the 
                United States; or
                  (B) a nongovernmental entity organized or 
                existing under, and subject to, the laws of the 
                United States or a State.

Sec. 80102. Certification authority

  (a) In General.--Not later than 1 year after the date of 
enactment of the American Space Commerce Free Enterprise Act of 
2017, the Secretary shall begin issuing certifications for the 
operation of a space object to any United States entity who 
submits an application for a certification in satisfaction of 
the requirements of this chapter.
  (b) Consultation.--The Secretary shall, as the Secretary 
considers necessary, consult with the heads of other relevant 
agencies in carrying out the requirements of this chapter, 
pursuant to section 80311.
  (c) Certification Required for Operation.--Beginning on the 
date that is 1 year after the date of enactment of the American 
Space Commerce Free Enterprise Act of 2017, a United States 
entity may not operate a space object unless the entity holds a 
certification issued under this chapter for the operation of 
such object or the entity holds a valid payload approval for 
launch or reentry under section 50904 as part of a license 
issued under chapter 509, and that satisfies the requirements 
of section 80108(a).
  (d) Foreign Entities Prohibited.--The Secretary may not issue 
a certification under this chapter to any person who is not a 
United States entity.
  (e) Coverage of Certification.--The Secretary shall, to the 
maximum extent practicable, require only 1 certification under 
this chapter for a United States entity to--
          (1) conduct multiple operations carried out using a 
        single space object;
          (2) operate multiple space objects that carry out 
        substantially similar operations; or
          (3) use multiple space objects to carry out a single 
        space operation.

Sec. 80103. Certification application and requirements

  (a) Application Process.--
          (1) In general.--To be eligible for a certification 
        or transfer of a certification to operate a space 
        object under this chapter, a United States entity shall 
        submit an application to the Secretary as provided in 
        paragraph (2). Such application shall include, for each 
        required item or attestation, sufficient evidence to 
        demonstrate each fact or assertion.
          (2) Contents.--An application described in paragraph 
        (1) shall include only the following information, with 
        respect to each space object and the operations 
        proposed to be certified:
                  (A) The name, address, and contact 
                information of one or more nationals of the 
                United States designated by the applicant as 
                responsible for the operation of the space 
                object.
                  (B) An affirmation, and a document of proof, 
                that the applicant is a United States entity.
                  (C) If available at the time of submission of 
                the application, the planned date and location 
                of the launch of the space object, including 
                the identity of the launch provider.
                  (D) The general physical form and composition 
                of the space object.
                  (E) A description of the proposed operations 
                of the space object that includes--
                          (i) when and where the space object 
                        will operate; and
                          (ii) when and where the operation of 
                        the space object will terminate.
                  (F) A description of how the space object 
                will be operated and disposed of in a manner to 
                mitigate the generation of space debris.
                  (G) Information about third-party liability 
                insurance obtained, if any, by the applicant 
                for operations of the space object, including 
                the amount and coverage of such liability 
                insurance.
                  (H) Whether the space object will include a 
                space-based remote sensing system.
          (3) Attestations.--An application described in 
        paragraph (1) shall contain an attestation by the 
        applicant of each the following:
                  (A) The space object is not a nuclear weapon 
                or a weapon of mass destruction.
                  (B) The space object will not carry a nuclear 
                weapon or weapon of mass destruction.
                  (C) The space object will not be operated or 
                used for testing of any weapon on a celestial 
                body.
                  (D) All information in the application and 
                supporting documents is true, complete, and 
                accurate.
  (b) Review of Application.--
          (1) Verification of information and attestations.--
        Not later than 90 days after receipt of an application 
        under this section, the Secretary shall verify that--
                  (A) the application is complete, including 
                any required supporting documents;
                  (B) the application does not contain any 
                clear indication of fraud or falsification; and
                  (C) the application contains each attestation 
                required under subsection (a)(3).
          (2) Determination.--Not later than 90 days after 
        receipt of an application under this section--
                  (A) if the Secretary verifies that the 
                applicant has met the application requirements 
                described in paragraph (1), the Secretary shall 
                approve the application and issue a 
                certification to the applicant with or without 
                conditions on the proposed operation of the 
                space object pursuant to subsection (c)(1)(A); 
                or
                  (B) if the Secretary cannot verify that the 
                applicant has met the application requirements 
                described in paragraph (1) or if the Secretary 
                determines it is necessary to deny the 
                application pursuant to subsection (c)(1)(B), 
                the Secretary--
                          (i) shall issue a denial of the 
                        application signed by the Secretary (a 
                        duty that may not be delegated, 
                        including to the Office of Space 
                        Commerce); and
                          (ii) shall, not later than 10 days 
                        after the decision to deny the 
                        certification--
                                  (I) provide the applicant 
                                with a written notification 
                                containing a clearly 
                                articulated rationale for the 
                                denial that provides, to the 
                                maximum extent practicable, 
                                guidance to the applicant as to 
                                how such rationale for denial 
                                could be addressed in a 
                                subsequent application; and
                                  (II) notify the Committee on 
                                Commerce, Science, and 
                                Transportation of the Senate 
                                and the Committee on Science, 
                                Space, and Technology of the 
                                House of Representatives of 
                                such rationale.
          (3) Automatic approval.--If the Secretary has not 
        approved or denied the application before the deadline 
        under paragraph (2), the certification shall be 
        approved without condition. The Secretary may not allow 
        tolling of the 90-day period under such paragraph.
          (4) Improper basis for denial.--The Secretary may not 
        deny an application for a certification under this 
        section in order to protect an existing certification 
        holder from competition.
          (5) Subsequent review.--The Secretary may not 
        prejudice a new application for the proposed operations 
        denied pursuant to paragraph (2)(B) if such new 
        application contains remedies addressing the rationale 
        for such denial.
  (c) Compliance With the Outer Space Treaty.--
          (1) In general.--If the Secretary determines, with 
        clear and convincing evidence, that the proposed 
        operation of a space object under an application for a 
        certification under this chapter is a violation of an 
        international obligation of the United States 
        pertaining to a nongovernmental entity of the United 
        States under the Outer Space Treaty--
                  (A) the Secretary may condition the proposed 
                operation covered by the certification only to 
                the extent necessary to prevent a violation of 
                such international obligation; or
                  (B) if the Secretary determines that there is 
                no practicable way to condition such 
                certification to prevent such a violation, the 
                Secretary may deny the application.
          (2) Limitation for determinations.--A determination 
        under paragraph (1) shall be limited as follows:
                  (A) The Federal Government shall interpret 
                and fulfill its international obligations under 
                the Outer Space Treaty in a manner that 
                minimizes regulations and limitations on the 
                freedom of United States nongovernmental 
                entities to explore and use space.
                  (B) The Federal Government shall interpret 
                and fulfill its international obligations under 
                the Outer Space Treaty in a manner that 
                promotes free enterprise in outer space.
                  (C) The Federal Government shall not presume 
                all obligations of the United States under the 
                Outer Space Treaty are obligations to be 
                imputed upon United States nongovernmental 
                entities.
                  (D) Guidelines promulgated by the Committee 
                on Space Research may not be considered 
                international obligations of the United States.
          (3) Presumptions.--In making a determination under 
        paragraph (1), the Secretary shall presume, absent 
        clear and convincing evidence to the contrary, that--
                  (A) any attestation made by an applicant 
                pursuant to subsection (a)(3) is sufficient to 
                meet the international obligations of the 
                United States pertaining to nongovernmental 
                entities of the United States under the Outer 
                Space Treaty addressed by such attestation; and
                  (B) reasonably commercially available efforts 
                are sufficient to be in conformity with the 
                international obligations of the United States 
                pertaining to nongovernmental entities of the 
                United States under the Outer Space Treaty.
          (4) Prohibition on retroactive conditions.--No other 
        modifications may be made, or additional conditions 
        placed, on a certification after the date on which the 
        certification is issued (except to account for a 
        material change as provided in section 80105(c) or the 
        removal of a condition pursuant to subsection (d)).
          (5) Nondelegable.--The responsibilities of the 
        Secretary under this subsection may not be delegated, 
        including to the Office of Space Commerce.
  (d) Authority to Remove Conditions.--The Secretary, as 
determined appropriate, may remove a condition placed on a 
certification pursuant to subsection (c).

Sec. 80104. Mitigation of space debris

  (a) Plan Submission.--To be eligible for a certification 
under this chapter, each application shall include a space 
debris mitigation plan for the space object. Such plan--
          (1) shall take into account best practice guidelines 
        promulgated by the United States and the Interagency 
        Debris Coordinating Committee; and
          (2) may take into account that a space object may end 
        certified operations and be stored in a safe manner 
        until such time as the space object is permanently 
        disposed of or certified for further operations.
  (b) Implementation.--To the maximum extent practicable, a 
holder of a certification under this chapter shall notify the 
Secretary not later than 30 days before beginning to implement 
the disposal phase of a space debris mitigation plan described 
in subsection (a). Such certification holder shall, not later 
than 30 days after completing implementation of such phase, 
update the Secretary of the results of any space debris 
mitigation efforts.

Sec. 80105. Continuing certification requirements

  (a) Notification Requirement.--A certification holder shall, 
in a timely manner, notify the Secretary if--
          (1) a certified space object has terminated 
        operations; or
          (2) a catastrophic event has occurred to a certified 
        space object, such as the unplanned destruction of a 
        space object.
  (b) Material Change.--The Secretary shall require 
certification holders to inform the Secretary of--
          (1) any material changes to the space object or the 
        planned operations of the space object prior to launch; 
        and
          (2) any material anomalies or departures from the 
        planned operations during the course of operations.
  (c) Update to Certification.--Not later than 14 days after 
the date of receipt of information regarding a material change 
pursuant to subsection (b), the Secretary shall make a 
determination of whether such material change is substantial 
enough to warrant additional review under section 80103(b). Not 
later than 90 days after a determination that such review is 
warranted, the Secretary shall complete a similar such review 
process for such material change as is required for a 
certification applicant under such section.

Sec. 80106. Certification transfer

  (a) In General.--Subject to subsections (b) and (c), the 
Secretary shall provide for the transfer of a certification 
under this chapter from the certification holder to another 
United States entity to continue the operations allowed under 
such certification.
  (b) Transfer Request Requirements.--To be eligible for a 
transfer under subsection (a), the certification holder shall 
submit to the Secretary a request that includes--
          (1) any identifying information regarding the 
        proposed transferee, including accompanying supporting 
        documents, that would be required under an initial 
        application under section 80103; and
          (2) each attestation required under section 
        80103(a)(3), including accompanying supporting 
        documents, completed by the proposed transferee.
  (c) Determination.--Not later than 90 days after a 
certification holder submits a request under subsection (b), 
the Secretary shall complete a similar review process for the 
request for transfer as required for a certification applicant 
under section 80103(b).

Sec. 80107. Certification expiration and termination

  (a) Certification Expiration.--A certification issued under 
this chapter shall expire on the earlier of--
          (1) the date on which all operations approved under 
        such certification cease, including carrying out a 
        space debris mitigation plan of any space object 
        approved under such certification;
          (2) the date on which all space objects approved 
        under the certification no longer exist; or
          (3) the date that is 5 years after the date on which 
        the certification was approved, if no operations 
        approved under the certification have commenced by such 
        date.
  (b) Certification Termination.--
          (1) In general.--The Secretary shall terminate a 
        certification under this chapter if an applicant or 
        certification holder is convicted of a violation of 
        section 1001 of title 18 related to the certification 
        process under this chapter.
          (2) Eligibility.--A certification holder whose 
        certification is terminated under this subsection shall 
        be ineligible to apply for or receive a certification 
        under this chapter.
          (3) Space debris mitigation plan.--Upon termination 
        of a certification under paragraph (1), the Secretary 
        may require the certification holder to carry out the 
        space debris mitigation plan submitted by the 
        certification holder under section 80104.

Sec. 80108. Existing license or pending application for launch or 
                    reentry

  (a) Continuation of Existing License.--Any United States 
entity for whom a payload has been approved (and not subject to 
an exemption under section 80110) on or before the effective 
date of this section for launch or reentry under section 50904 
as part of a license issued under chapter 509 may--
          (1) elect to be immediately considered certified for 
        operation under this chapter on such effective date, in 
        which case all terms and conditions applicable to the 
        payload as approved for launch or reentry as part of a 
        license issued under chapter 509 shall apply for the 
        duration of the operation of the payload; or
          (2) apply for a certification under this chapter for 
        the operation of the licensed activities and may 
        continue to operate pursuant to such license until such 
        time as such certification is issued.
  (b) Rescinding or Transfer of Pending License.--A payload of 
a United States entity that, on the effective date of this 
section, is pending approval under section 50904 as part of a 
launch or reentry license issued under chapter 509 may be, at 
the election of the applicant for payload approval--
          (1) rescinded without prejudice; or
          (2) transferred to the Office of Space Commerce and 
        deemed to be a pending application for certification 
        under this chapter.
  (c) Effective Date.--This section shall take effect on the 
date that is 1 year after the date of enactment of the American 
Space Commerce Free Enterprise Act of 2017.

Sec. 80109. Private Space Activity Advisory Committee

  (a) Establishment.--The Secretary shall establish a Private 
Space Activity Advisory Committee (in this section referred to 
as the ``Committee'') consisting of 15 members who shall be 
appointed by the Secretary.
  (b) Chair.--The Committee shall designate one member as the 
chair of the Committee.
  (c) Membership.--
          (1) Limitation.--Members of the Committee may not be 
        Federal Government employees or officials.
          (2) Travel expenses.--Members of the Committee shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with the applicable 
        provisions under subchapter I of chapter 57 of title 5.
          (3) Qualifications.--Members of the Committee shall 
        include a variety of space policy, engineering, 
        technical, science, legal, and finance professionals. 
        Not less than 3 members shall have significant 
        experience working in the commercial space industry.
  (d) Terms.--Each member of the Committee shall serve for a 
term of 4 years and may not serve as a member for the 2-year 
period following the date of completion of each such term.
  (e) Duties.--The duties of the Committee shall be to--
          (1) analyze the status and recent developments of 
        nongovernmental space activities;
          (2) analyze the effectiveness and efficiency of the 
        implementation of the certification process under this 
        chapter;
          (3) provide recommendations to the Secretary and 
        Congress on how the United States can facilitate and 
        promote a robust and innovative private sector that is 
        investing in, developing, and operating space objects;
          (4) identify any challenges the United States private 
        sector is experiencing--
                  (A) with the authorization and supervision of 
                the operation of space objects under this 
                chapter;
                  (B) more generally, with international 
                obligations of the United States relevant to 
                private sector activities in outer space;
                  (C) with harmful interference to private 
                sector activities in outer space; and
                  (D) with access to adequate, predictable, and 
                reliable radio frequency spectrum;
          (5) review existing best practices for United States 
        entities to avoid the harmful contamination of the Moon 
        and other celestial bodies;
          (6) review existing best practices for United States 
        entities to avoid adverse changes in the environment of 
        the Earth resulting from the introduction of 
        extraterrestrial matter;
          (7) provide information, advice, and recommendations 
        on matters relating to United States private sector 
        activities in outer space; and
          (8) provide information, advice, and recommendations 
        on matters related to the authority of the Secretary 
        under this chapter or to private sector space 
        activities authorized pursuant to this chapter that the 
        Committee determines necessary.
  (f) Annual Report.--The Committee shall submit to Congress, 
the President, and the Secretary an annual report that includes 
the information, analysis, findings, and recommendations 
described in subsection (e).
  (g) Sunset.--The Committee shall terminate on the date that 
is 10 years after the date on which the Committee is 
established.

Sec. 80110. Exemptions

  (a) In General.--A certification is not required under this 
chapter for any of the following operations:
          (1) Space object activities authorized by another 
        country that is a party to the Outer Space Treaty.
          (2) Launch or reentry vehicle operations licensed by 
        the Department of Transportation under chapter 509.
          (3) Space stations licensed by the Federal 
        Communications Commission under the Communications Act 
        of 1934 (47 U.S.C. 151 et seq.).
  (b) Rule of Construction.--Nothing in this section shall be 
construed to exempt any entity from the requirement to obtain a 
permit to operate a space-based remote sensing system under 
chapter 802.

Sec. 80111. Protecting the interests of United States entity space 
                    objects

  The President shall--
          (1) protect the interests of United States entity 
        exploration and use of outer space, including 
        commercial activity and the exploitation of space 
        resources, from acts of foreign aggression and foreign 
        harmful interference;
          (2) protect ownership rights of United States entity 
        space objects and obtained space resources; and
          (3) ensure that United States entities operating in 
        outer space are given due regard.

     CHAPTER 802--PERMITTING OF SPACE-BASED REMOTE SENSING SYSTEMS

Sec.
80201. Permitting authority.
80202. Application for permit.
80203. Continuing permitting requirements.
80204. Permit transfer.
80205. Agency activities.
80206. Annual reports.
80207. Advisory Committee on Commercial Remote Sensing.
80208. Continuation of existing license or pending application.
80209. Commercial Remote Sensing Regulatory Affairs Office.

Sec. 80201. Permitting authority

  (a) In General.--Not later than 1 year after the date of 
enactment of the American Space Commerce Free Enterprise Act of 
2017, the Secretary is authorized to permit persons to operate 
space-based remote sensing systems.
  (b) Consultation.--The Secretary shall, as the Secretary 
considers necessary, consult with the heads of other relevant 
agencies in carrying out the requirements of this chapter, 
pursuant to section 80311.
  (c) Limitation With Respect to System Used for Other 
Purposes.--In the case of a space object that is used for 
remote sensing and other purposes, the authority of the 
Secretary under this chapter shall be limited to the remote 
sensing operations of such space object.
  (d) De Minimis Exception.--
          (1) Waiver.--The Secretary may waive the requirement 
        for a permit for a space-based remote sensing system 
        that the Secretary determines is--
                  (A) ancillary to the primary design purpose 
                of the space object; or
                  (B) too trivial to require a determination 
                under section 80202(c) relating to national 
                security.
          (2) Guidance.--Not later than 1 year after the date 
        of enactment of this subsection, the Secretary shall 
        issue guidance providing a clear explanation of the 
        criteria used by the Secretary to grant a de minimis 
        waiver under paragraph (1)(B) for a space-based remote 
        sensing system that is too trivial to require a 
        determination under section 80202(c).
  (e) Coverage of Permit.--The Secretary shall, to the maximum 
extent practicable, ensure that only one permit is required 
under this chapter to--
          (1) conduct multiple operations carried out using a 
        space-based remote sensing system;
          (2) operate multiple space-based remote sensing 
        systems that carry out substantially similar 
        operations; or
          (3) use multiple space-based remote sensing systems 
        to carry out a single remote sensing operation.
  (f) Prohibition on Operation.--Not later than 1 year after 
the date of enactment of the American Space Commerce Free 
Enterprise Act of 2017, no person may, directly or through any 
subsidiary or affiliate, operate any space-based remote sensing 
system without a permit issued under this chapter.
  (g) Responsible Party.--In any case in which the applicant 
for a permit under this chapter is not a United States entity, 
the applicant shall identify a United States entity that 
consents to be responsible for the permitted operation of the 
space-based remote sensing system.
  (h) Operation of Space-Based Remote Sensing System.--For 
purposes of this chapter, the operation of a space-based remote 
sensing system--
          (1) begins when the system--
                  (A) is located in outer space; and
                  (B) can meet the minimum threshold and 
                objective capabilities for the system's stated 
                need; and
          (2) shall not cover the acts of distribution, sale, 
        or transfer of data, information, or services to 
        persons, foreign or domestic, including any such acts 
        taken pursuant to an agreement with such persons.

Sec. 80202. Application for permit

  (a) Application Process.--
          (1) In general.--To receive a permit to operate a 
        space-based remote sensing system under this chapter, a 
        person shall submit an application to the Secretary as 
        provided in paragraph (2). Such application shall 
        include, for each required item, sufficient evidence to 
        demonstrate each fact or assertion.
          (2) Contents.--An application described in paragraph 
        (1) shall include only the following information, with 
        respect to each space-based remote sensing system and 
        the operations proposed to be permitted:
                  (A) The name, address, and contact 
                information of one or more United States entity 
                identified by the applicant, pursuant to 
                section 80201(g), as responsible for the 
                operation of the space-based remote sensing 
                system.
                  (B) If available at the time of submission of 
                the application, the planned date and location 
                of the launch of the applicable space object, 
                including the identity of the launch provider.
                  (C) The general physical form and composition 
                of the space-based remote sensing system.
                  (D) A description of the proposed operations 
                of the space-based remote sensing system that 
                includes--
                          (i) when and where the space-based 
                        remote sensing system will operate;
                          (ii) when and where the operation of 
                        the space-based remote sensing system 
                        will terminate; and
                          (iii) any additional information 
                        necessary to make a determination under 
                        subsection (c) regarding a significant 
                        threat to national security, as 
                        prescribed in advance in regulation by 
                        the Secretary.
                  (E) A description of how the space-based 
                remote sensing system will be operated and 
                disposed of in a manner to mitigate the 
                generation of space debris.
                  (F) Information about third-party liability 
                insurance obtained, if any, by the applicant 
                for operations of the space-based remote 
                sensing system, including the amount and 
                coverage of such liability insurance.
  (b) Review of Application.--
          (1) Verifications.--Not later than 90 days after 
        receipt of an application under this section, the 
        Secretary shall verify that--
                  (A) the application is complete pursuant to 
                subsection (a); and
                  (B) the application does not contain any 
                clear indication of fraud or falsification.
          (2) Determination.--Not later than 90 days after 
        receipt of an application under this section--
                  (A) if the Secretary verifies that the 
                applicant has met the application requirements 
                described in paragraph (1), the Secretary shall 
                approve the application and issue a permit to 
                the applicant with or without conditions on the 
                proposed operation of the space-based remote 
                sensing system pursuant to subsection 
                (c)(1)(A); or
                  (B) if the Secretary cannot verify that the 
                applicant has met the application requirements 
                described in paragraph (1) or if the Secretary 
                makes a determination to deny the application 
                under subsection (c)(1)(B), the Secretary--
                          (i) shall issue a denial of the 
                        application signed by the Secretary (a 
                        duty that may not be delegated, 
                        including to the Office of Space 
                        Commerce); and
                          (ii) shall, not later than 10 days 
                        after the decision to deny the 
                        application--
                                  (I) provide the applicant 
                                with a written notification 
                                containing a clearly 
                                articulated rationale for the 
                                denial that, to the maximum 
                                extent practicable--
                                          (aa) provides 
                                        guidance to the 
                                        applicant as to how the 
                                        articulated rationale 
                                        for denial could be 
                                        addressed in a 
                                        subsequent application; 
                                        and
                                          (bb) includes all 
                                        classified information 
                                        included in such 
                                        rationale for which the 
                                        applicant has the 
                                        required security 
                                        clearance; and
                                  (II) submit a notification of 
                                the denial to the Committee on 
                                Commerce, Science, and 
                                Transportation of the Senate 
                                and the Committee on Science, 
                                Space, and Technology of the 
                                House of Representatives that--
                                          (aa) contains the 
                                        clearly articulated 
                                        rationale for the 
                                        denial; and
                                          (bb) in the case of a 
                                        denial pursuant to a 
                                        national security 
                                        determination under 
                                        subsection (c)--
                                                  (AA) includes 
                                                an explanation 
                                                of how, and 
                                                clear and 
                                                convincing 
                                                evidence that, 
                                                to the maximum 
                                                extent 
                                                practicable, 
                                                the Federal 
                                                Government took 
                                                steps to 
                                                mitigate a 
                                                significant 
                                                threat to the 
                                                national 
                                                security of the 
                                                United States 
                                                posed by the 
                                                operation of 
                                                the applicant's 
                                                space-based 
                                                remote sensing 
                                                system by 
                                                changing 
                                                Federal 
                                                Government 
                                                activities and 
                                                operations; and
                                                  (BB) may 
                                                contain 
                                                classified 
                                                information.
          (3) Automatic approval.--If the Secretary has not 
        approved or denied the application before the deadline 
        under paragraph (2), the application shall be approved 
        without condition. The Secretary may not allow tolling 
        of the 90-day period under such paragraph.
          (4) Improper basis for denial.--The Secretary may not 
        deny an application for a permit under this section in 
        order to protect an existing permit holder from 
        competition.
          (5) Subsequent review.--The Secretary may not 
        prejudice a new application for the proposed operations 
        denied pursuant to paragraph (2)(B) if such new 
        application contains remedies addressing the rationale 
        for such denial.
  (c) Addressing National Security Threat.--
          (1) In general.--If the Secretary determines, with 
        clear and convincing evidence, that the proposed 
        operation of a space-based remote sensing system under 
        an application for a permit under this chapter poses a 
        significant threat to the national security of the 
        United States as provided in paragraph (2)--
                  (A) the Secretary may condition the proposed 
                operation covered by the permit only to the 
                extent necessary to address such threat; or
                  (B) if the Secretary determines that there is 
                no practicable way to condition such permit to 
                address such threat, the Secretary may deny the 
                application.
          (2) Significant threat to national security.--For 
        purposes of a determination under paragraph (1), a 
        significant threat to the national security of the 
        United States is a threat--
                  (A) that is imminent; and
                  (B) that cannot practicably be mitigated 
                through changes to Federal Government 
                activities or operations.
          (3) Reasonably commercially available efforts.--To 
        the maximum extent practicable, the Secretary shall 
        only place a condition on a permit that is achievable 
        using reasonably commercially available efforts.
          (4) Notification.--Not later than 10 days after the 
        decision to condition the proposed operation covered by 
        a permit pursuant to this subsection, the Secretary 
        shall--
                  (A) provide the applicant with a written 
                notification containing a clearly articulated 
                rationale for the condition that, to the 
                maximum extent practicable--
                          (i) provides guidance to the 
                        applicant as to how the articulated 
                        rationale for condition could be 
                        addressed in a subsequent application; 
                        and
                          (ii) includes all classified 
                        information included in such rationale 
                        for which the applicant has the 
                        required security clearance; and
                  (B) submit a notification of the condition to 
                the Committee on Commerce, Science, and 
                Transportation of the Senate and the Committee 
                on Science, Space, and Technology of the House 
                of Representatives that--
                          (i) contains the clearly articulated 
                        rationale for the condition;
                          (ii) includes an explanation of how, 
                        and clear and convincing evidence that, 
                        to the maximum extent practicable, the 
                        Federal Government took steps to 
                        mitigate a significant threat to the 
                        national security of the United States 
                        posed by the operation of the 
                        applicant's space-based remote sensing 
                        system by changing Federal Government 
                        activities and operations; and
                          (iii) may contain classified 
                        information.
          (5) Prohibition on retroactive conditions.--No other 
        modifications may be made, or additional conditions 
        placed, on a permit after the date on which the permit 
        is issued except to account for a material change as 
        provided in section 80203(c).
          (6) Nondelegable.--The responsibilities of the 
        Secretary under this subsection may not be delegated, 
        including to the Office of Space Commerce.
  (d) Limitations on Conditions.--
          (1) Same or similar capability.--No operational 
        condition under subsection (c) may be placed on a 
        space-based remote sensing system that has the same or 
        substantially similar space-based remote sensing 
        capabilities as another system permitted under this 
        chapter with no such condition.
          (2) Conditions that exceed permitted conditions.--The 
        Secretary may not place a condition on a permit for a 
        space-based remote sensing system that exceeds a 
        condition placed on an existing permitted system that 
        has the same or substantially similar capabilities.
  (e) Commercially Available Capability.--
          (1) Exception.--The Secretary may not deny an 
        application for, or place a condition on, a permit for 
        the operation of a space-based remote sensing system 
        for which the same or substantially similar 
        capabilities, derived data, products, or services are 
        already commercially available or reasonably expected 
        to be made available in the next 3 years in the 
        international or domestic marketplace. The exception in 
        the previous sentence applies regardless of whether the 
        marketplace products and services originate from the 
        operation of aircraft, unmanned aircraft, or other 
        platforms or technical means or are assimilated from a 
        variety of data sources.
          (2) Clear and convincing evidence.--Each denial of an 
        application for, and each condition placed on, a permit 
        for the operation of a space-based remote sensing 
        system, shall include an explanation of, and clear and 
        convincing evidence that, the exception under paragraph 
        (1) does not apply with respect to the proposed 
        permitted operations of such system.
          (3) Database.--The President shall--
                  (A) maintain a database of commercially 
                available capabilities described in paragraph 
                (1);
                  (B) update such database not less than once 
                every 3 months; and
                  (C) 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 
                containing the contents of the database upon 
                each update required under subparagraph (B).
          (4) Applicant submissions.--An applicant for, or 
        holder of, a permit for the operation of a space-based 
        remote sensing system may submit to the Secretary 
        evidence of, or information regarding, a commercially 
        available capability described in paragraph (1) for 
        consideration for inclusion in the database.
          (5) Nonapplication of condition.--In any case in 
        which the Secretary determines that the exception under 
        paragraph (1) applies with respect to a permit for the 
        operation of a space-based remote sensing system for 
        which the Secretary has placed a condition under 
        subsection (c), such condition shall no longer apply 
        with respect to such permitted operations.
  (f) Authority To Remove Conditions.--Nothing in this section 
shall be construed to prohibit the Secretary from removing a 
condition placed on a permit pursuant to subsection (c).

Sec. 80203. Continuing permitting requirements

  (a) Notification Requirement.--A permit holder shall, in a 
timely manner, notify the Secretary if--
          (1) a permitted space-based remote sensing system has 
        terminated operations; or
          (2) a catastrophic event has occurred to a space-
        based remote sensing system, such as the unplanned 
        destruction of such system.
  (b) Material Change.--The Secretary shall require permit 
holders to inform the Secretary of--
          (1) any material changes to the space-based remote 
        sensing system or the planned operations of such system 
        prior to launch; and
          (2) any material anomalies or departures from the 
        planned operations during the course of operations.
  (c) Update to Permit.--Not later than 14 days after the date 
of receipt of information regarding a material change pursuant 
to subsection (b), the Secretary shall make a determination of 
whether such material change is substantial enough to warrant 
additional review under section 80202(b). Not later than 90 
days after a determination that such review is warranted, the 
Secretary shall complete a similar such review process for such 
material change as is required for a permit applicant under 
such section.

Sec. 80204. Permit transfer

  (a) In General.--Subject to subsections (b) and (c), the 
Secretary shall provide for the transfer of a permit under this 
chapter from the permit holder to another person to continue 
the operations allowed under such permit.
  (b) Transfer Request Requirements.--To be eligible for a 
transfer under subsection (a), the permit holder shall submit 
to the Secretary a request that includes any identifying 
information regarding the transferee that would be required 
under an initial application under section 80202.
  (c) Determination.--Not later than 14 days after the date on 
which the Secretary receives a transfer request pursuant to 
subsection (b), the Secretary shall make a determination of 
whether such material change is substantial enough to warrant 
additional review under section 80202(b). Not later than 90 
days after a determination that such review is warranted, the 
Secretary shall complete a similar such review process for such 
transferee as is required for a permit applicant under such 
section.
  (d) Material Change.--Any transfer of a permit under this 
chapter constitutes a material change under section 80203(b).

Sec. 80205. Agency activities

  (a) Utilization of Federal Government Vehicle.--A person may 
apply for a permit to operate a space-based remote sensing 
system that utilizes, on a space-available basis, a civilian 
Federal Government satellite or vehicle as a platform for such 
system. The Secretary, pursuant to this chapter, may permit 
such system if it meets all conditions of this chapter.
  (b) Assistance.--The Secretary may offer assistance to 
persons in finding appropriate opportunities for the 
utilization described in subsection (a).
  (c) Agreements.--To the extent provided in advance by 
appropriation Acts, an agency may enter into an agreement for 
the utilization described in subsection (a) if such agreement 
is consistent with the agency's mission and statutory 
authority, and if the space-based remote sensing system is 
issued a permit by the Secretary under this chapter before 
commencing operation.

Sec. 80206. Annual reports

  (a) In General.--The Secretary shall submit a report to the 
Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Science, Space, and Technology of 
the House of Representatives not later than 180 days after the 
date of enactment of the American Space Commerce Free 
Enterprise Act of 2017, and annually thereafter, on--
          (1) the Secretary's implementation of this chapter, 
        including--
                  (A) a list of all applications received in 
                the previous calendar year;
                  (B) a list of all applications that resulted 
                in a permit;
                  (C) a list of all applications denied and an 
                explanation of why each application was denied, 
                including any information relevant to the 
                adjudication process of a request for a permit;
                  (D) a list of all applications that required 
                additional information; and
                  (E) a list of all applications whose 
                disposition exceeded the 90-day deadline, the 
                total days overdue for each application that 
                exceeded such deadline, and an explanation for 
                the delay; and
          (2) a description of all actions taken by the 
        Secretary under the administrative authority granted by 
        section 80301.
  (b) Classified Annexes.--Each report under subsection (a) may 
include classified annexes as necessary to protect the 
disclosure of sensitive or classified information.

Sec. 80207. Advisory Committee on Commercial Remote Sensing

  (a) Establishment.--The Secretary shall establish an Advisory 
Committee on Commercial Remote Sensing (in this section 
referred to as the ``Committee'') consisting of 15 members who 
shall be appointed by the Secretary.
  (b) Chair.--The Committee shall designate one member as the 
chair of the Committee.
  (c) Membership.--
          (1) Limitation.--Members of the Committee may not be 
        Federal Government employees or officials.
          (2) Travel expenses.--Members of the Committee shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with the applicable 
        provisions under subchapter I of chapter 57 of title 5.
  (d) Terms.--Each member of the Committee shall serve for a 
term of 4 years and may not serve as a member for the 2-year 
period following the date of completion of each such term.
  (e) Duties.--The duties of the Committee shall be to--
          (1) provide information, advice, and recommendations 
        on matters relating to the United States commercial 
        space-based remote sensing industry;
          (2) analyze the effectiveness and efficiency of the 
        implementation of the space-based remote sensing system 
        permitting process under this chapter;
          (3) provide recommendations to the Secretary and 
        Congress on how the United States can facilitate and 
        promote a robust and innovate private sector that is 
        investing in, developing, and operating space-based 
        remote sensing systems;
          (4) identify any challenges the United States private 
        sector is experiencing with the authorization and 
        supervision of the operation of space-based remote 
        sensing systems under this chapter; and
          (5) provide information, advice, and recommendations 
        on matters related to the authority of the Secretary 
        under this chapter or to private sector space 
        activities authorized pursuant to this chapter that the 
        Committee determines necessary.
  (f) Annual Report.--The Committee shall submit to Congress, 
the President, the Secretary, and the Director of the Office of 
Space Commerce, an annual report that includes the information, 
analysis, findings, and recommendations described in subsection 
(e).
  (g) Sunset.--The Committee shall terminate on the date that 
is 10 years after the date on which the Committee is 
established.

Sec. 80208. Continuation of existing license or pending application

  (a) Continuation of Existing License.--Any United States 
entity for whom a license for the operation of a space-based 
remote sensing system issued under subchapter III of chapter 
601 that is valid on the effective date of this section may--
          (1) elect to be immediately considered permitted for 
        operation under this chapter, in which case all terms 
        and conditions of a license issued under such 
        subchapter with respect to the operation of such system 
        shall apply for the duration of the license; or
          (2) apply for a permit for operation under this 
        chapter and may continue to operate pursuant to such 
        license until such time as such permit is issued.
  (b) Rescind or Transfer of Pending License.--An applicant 
with an application for a remote sensing license under 
subchapter III of chapter 601 that is pending on the effective 
date of this section may be, at the election of the applicant--
          (1) rescinded without prejudice; or
          (2) transferred to the Office of Space Commerce and 
        deemed to be a pending application for a permit under 
        this chapter.
  (c) Effective Date.--This section shall take effect on the 
date that is 1 year after the date of enactment of the American 
Space Commerce Free Enterprise Act of 2017.

Sec. 80209. Commercial Remote Sensing Regulatory Affairs Office

  On the date that is 1 year after the date of enactment of the 
American Space Commerce Free Enterprise Act of 2017, the 
Commercial Remote Sensing Regulatory Affairs Office of the 
National Oceanic and Atmospheric Administration is abolished.

  CHAPTER 803--ADMINISTRATIVE PROVISIONS RELATED TO CERTIFICATION AND 
                               PERMITTING

Sec.
80301. Administrative authority.
80302. Consultation.
80303. Appeal of denial or condition of certification or permit.
80304. Exclusive authority for determination of international 
          obligations.
80305. Limitation on certain agency supervision.
80306. Commercial exploration and use of outer space.
80307. Rule of construction on concurrent application submission.
80308. Federal jurisdiction.
80309. Global commons.
80310. Regulatory authority.
80311. Consultation with relevant agencies.
80312. Authorization of appropriations.

Sec. 80301. Administrative authority

  (a) Functions.--In order to carry out the responsibilities 
specified in this subtitle, the Secretary may--
          (1) seek an order of injunction or similar judicial 
        determination from a district court of the United 
        States with personal jurisdiction over the 
        certification or permit holder to terminate 
        certifications or permits under this subtitle and to 
        terminate certified or permitted operations on an 
        immediate basis, if the Secretary determines that the 
        certification or permit holder has substantially failed 
        to comply with any provisions of this subtitle, or with 
        any terms of a certification or permit;
          (2) provide for civil penalties not to exceed $10,000 
        (each day of operation constituting a separate 
        violation) and not to exceed $500,000 in total, for--
                  (A) noncompliance with the certification or 
                permitting requirements or regulations issued 
                under this subtitle; or
                  (B) the operation of a space object or space-
                based remote sensing system without the 
                applicable certification or permit issued under 
                this subtitle;
          (3) compromise, modify, or remit any such civil 
        penalty;
          (4) seize any object, record, or report, or copies of 
        materials, documents, or records, pursuant to a warrant 
        from a magistrate based on a showing of probable cause 
        to believe that such object, record, or report was 
        used, is being used, or is likely to be used in 
        violation of this subtitle or the requirements of a 
        certification or permit or regulation issued 
        thereunder; and
          (5) make investigations and inquiries concerning any 
        matter relating to the enforcement of this subtitle.
  (b) Review of Agency Action.--Any holder of, or applicant 
for, a certification or a permit who makes a timely request for 
review of an adverse action pursuant to paragraph (2) or (4) of 
subsection (a) shall be entitled to adjudication by the 
Secretary on the record after an opportunity for any agency 
hearing with respect to such adverse action. Any final action 
by the Secretary under this subsection shall be subject to 
judicial review under chapter 7 of title 5, as provided in 
section 80303 of this chapter.
  (c) No Cost for Certification or Permit.--The Secretary may 
not impose a fee or other cost on a holder of, or applicant 
for--
          (1) a certification under chapter 801; or
          (2) a permit under chapter 802.
  (d) No Authority to Set Conditions.--The Secretary may not 
impose a substantive condition on, or any other requirement 
for, the issuance of a certification or permit except as 
specifically provided in this subtitle.
  (e) FOIA Exemption.--Paragraph (3) of section 552(b) of title 
5 shall apply with respect to any filing relating to a 
certification or a permit under this subtitle.
  (f) Limitation on Exceptions to Administrative Procedures.--
The exceptions under section 553(a)(1), section 553(b)(B), or 
section 554(a)(4) of title 5 shall not apply with respect to a 
certification or permit under this subtitle.

Sec. 80302. Consultation

  (a) Sense of Congress.--It is the sense of the Congress 
that--
          (1) the United States Government has assets in Earth 
        orbit critical to national security, scientific 
        research, economic growth, and exploration;
          (2) such assets represent a considerable investment 
        of United States taxpayers; and
          (3) it is in the national interest of the United 
        States to facilitate opportunities to provide for the 
        protection of such assets.
  (b) Review.--Not later than 30 days after the Secretary 
issues a certification under chapter 801, the Secretary shall 
review the operations of any space objects covered by the 
certification to determine whether the interaction between such 
operations and the operations of a Federal Government space 
object present a substantial risk to the physical safety of a 
space object operated by either party.
  (c) Requirement to Participate in Consultation.--If the 
Secretary makes a determination that a substantial risk 
identified under subsection (b) exists, the Secretary may 
require that the certification holder participate in a 
consultation under this section.
  (d) Parties to a Consultation.--
          (1) In general.--A consultation under this section 
        may be held, with respect to a substantial safety risk 
        identified under subsection (b), between--
                  (A) a certification holder responsible for 
                the certified space object operations; and
                  (B) any entity of the Federal Government 
                operating a potentially affected space object.
          (2) Participation.--The Secretary may not impose any 
        requirement on a party pursuant to participation in the 
        consultation.
  (e) Mitigation of Safety Risk.--In carrying out a 
consultation, the Secretary shall--
          (1) facilitate a discussion among the parties to the 
        consultation;
          (2) encourage a mutual understanding of the safety 
        risk; and
          (3) encourage, to the maximum extent practicable, 
        voluntary agreements between the parties to the 
        consultation to improve the physical safety of affected 
        space object operations or mitigate the physical safety 
        risk.
  (f) Duration of Consultation; Notice.--Not later than 90 days 
after the Secretary requires a consultation under this section, 
the Secretary shall--
          (1) complete all activities related to the 
        consultation; and
          (2) submit to Congress a written notification with 
        respect to such consultation, that includes--
                  (A) the names of each party to the 
                consultation;
                  (B) a description of the physical safety risk 
                at issue;
                  (C) whether any voluntary agreement was made 
                by the parties; and
                  (D) the content of any such agreement.
  (g) Rule of Construction.--Nothing in this section shall be 
construed to grant any additional authority to the Secretary to 
regulate, or place conditions on, any activity for which a 
certification or permit is required under this subtitle.

Sec. 80303. Appeal of denial or condition of certification or permit

  An applicant who is denied a certification under section 
80103(b)(2)(B), an applicant who is denied a permit under 
section 80202(b)(2)(B), or an applicant whose certification or 
permit is conditioned pursuant to section 80103(c) or section 
80202(c), respectively, may appeal the denial or placement of a 
condition to the Secretary. The Secretary shall affirm or 
reverse the denial or placement of a condition after providing 
the applicant notice and an opportunity to be heard. The 
Secretary shall dispose of the appeal not later than 60 days 
after the appeal is submitted. If the Secretary denies the 
appeal, the applicant may seek review in the United States 
Court of Appeals for the District of Columbia Circuit or in the 
court of appeals of the United States for the circuit in which 
the person resides or has its principal place of business.

Sec. 80304. Exclusive authority for determination of international 
                    obligations

  Except for the Secretary as authorized by this subtitle, no 
agency may impose a requirement or make a finding with regard 
to an international obligation of the United States pertaining 
to a nongovernmental entity of the United States under the 
Outer Space Treaty relating to--
          (1) the operation of a space object certified under 
        chapter 801; and
          (2) the carrying out of a space debris mitigation 
        plan of a space object for which a certification was 
        issued under chapter 801.

Sec. 80305. Limitation on certain agency supervision

  (a) In General.--Not later than 1 year after the date of 
enactment of the American Space Commerce Free Enterprise Act of 
2017, no other agency shall have the authority to authorize, 
place conditions on, or supervise the operation of space 
objects required to be certified under chapter 801 or space-
based remote sensing systems required to be permitted under 
chapter 802 except--
          (1) the Department of Transportation with respect to 
        launch or reentry vehicle operations licensed under 
        chapter 509; and
          (2) the Federal Communications Commission with 
        respect to space stations licensed under the 
        Communications Act of 1934 (47 U.S.C. 151 et seq.).
  (b) Agreement Limitations.--Nothing in this section shall be 
construed to prevent an agency from including additional terms, 
conditions, limitations, or requirements, consistent with 
applicable provisions of law, beyond those required in this 
subtitle in a contract or other agreement with--
          (1) the holder of a certification under chapter 801 
        for the operation of the applicable space object; or
          (2) the holder of a permit under chapter 802 for the 
        operation of the applicable space-based remote sensing 
        system.

Sec. 80306. Commercial exploration and use of outer space

  To the maximum extent practicable, the President, acting 
through appropriate Federal agencies, shall interpret and 
fulfill international obligations, including under the covered 
treaties on outer space, to minimize regulations and 
limitations on the freedom of United States nongovernmental 
entities to explore and use space.

Sec. 80307. Rule of construction on concurrent application submission

  Nothing in this subtitle shall be construed to prevent an 
applicant from submitting to the Secretary concurrent 
applications for a certification under chapter 801 and a permit 
under chapter 802. The Secretary shall provide for applications 
under chapter 801 and chapter 802 to be filed concurrently or 
at different times, at the discretion of the applicant. To the 
maximum extent practicable, the Secretary shall avoid 
duplication of information required in concurrently filed 
applications.

Sec. 80308. Federal jurisdiction

  The district courts shall have original jurisdiction, 
exclusive of the courts of the States, of any civil action 
resulting from the operation of a space object for which a 
certification or permit is required under this subtitle.

Sec. 80309. Global commons

  Notwithstanding any other provision of law, outer space shall 
not be considered a global commons.

Sec. 80310. Regulatory authority

  (a) In General.--The Secretary shall issue such regulations 
as are necessary to carry out this subtitle.
  (b) Reducing Regulatory Burden.--In issuing regulations to 
carry out this subtitle, the Secretary shall avoid, to the 
maximum extent practicable, the placement of inconsistent, 
duplicative, or otherwise burdensome requirements on the 
operations of United States nongovernmental entities in outer 
space.

Sec. 80311. Consultation with relevant agencies

  (a) In General.--Subject to subsection (b), the Secretary 
shall, as the Secretary considers necessary, consult with the 
heads of other relevant agencies in carrying out this subtitle.
  (b) Exclusive Authority of the Secretary.--The consultation 
authority provided by subsection (a) shall not be interpreted 
to alter the exclusive authority of the Secretary to authorize, 
place conditions on, and supervise the operation of space 
objects under chapter 801 and space-based remote sensing 
systems under chapter 802, as provided in and subject to the 
limitations of section 80305.

Sec. 80312. Authorization of appropriations

  There are authorized to be appropriated $5,000,000 to the 
Office of Space Commerce for fiscal year 2018 to carry out this 
subtitle.