[House Report 118-41]
[From the U.S. Government Publishing Office]


118th Congress }                                              {    Report
                        HOUSE OF REPRESENTATIVES              
 1st Session   }                                              {  118-41

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



 
                        SECURE SPACE ACT OF 2023

                                _______
                                

 April 25, 2023.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mrs. Rodgers of Washington, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 675]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 675) to amend the Secure and Trusted 
Communications Networks Act of 2019 to prohibit the Federal 
Communications Commission from granting a license or United 
States market access for a non-geostationary orbit satellite 
system if the license or grant of market access would be held 
or controlled by an entity that produces or provides any 
covered communications equipment or service or an affiliate of 
such an entity, and for other purposes, having considered the 
same, reports favorably thereon with amendments and recommends 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     3
Committee Action.................................................     3
Committee Votes..................................................     4
Oversight Findings and Recommendations...........................     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     6
Statement of General Performance Goals and Objectives............     6
Duplication of Federal Programs..................................     6
Related Committee and Subcommittee Hearings......................     6
Committee Cost Estimate..........................................     7
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     8

    The amendments are as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Secure Space Act of 2023''.

SEC. 2. PROHIBITION ON GRANT OF CERTAIN SATELLITE LICENSES, UNITED 
                    STATES MARKET ACCESS, OR EARTH STATION 
                    AUTHORIZATIONS.

  (a) In General.--The Secure and Trusted Communications Networks Act 
of 2019 (47 U.S.C. 1601 et seq.) is amended--
          (1) by redesignating sections 10 and 11 as sections 11 and 
        12, respectively; and
          (2) by inserting after section 9 the following:

``SEC. 10. PROHIBITION ON GRANT OF CERTAIN SATELLITE LICENSES, UNITED 
                    STATES MARKET ACCESS, OR EARTH STATION 
                    AUTHORIZATIONS.

  ``(a) In General.--The Commission may not grant a license for, or a 
petition for a declaratory ruling to access the United States market 
using, a geostationary orbit satellite system or a nongeostationary 
orbit satellite system, or an authorization to use an individually 
licensed earth station or a blanket-licensed earth station, if such 
license, grant of market access, or authorization would be held or 
controlled by--
          ``(1) an entity that produces or provides any covered 
        communications equipment or service; or
          ``(2) an affiliate (as defined in section 3 of the 
        Communications Act of 1934 (47 U.S.C. 153)) of an entity 
        described in paragraph (1).
  ``(b) Definitions.--In this section:
          ``(1) Blanket-licensed earth station.--The term `blanket-
        licensed earth station' means an earth station that is licensed 
        with a geostationary orbit satellite system or a 
        nongeostationary orbit satellite system.
          ``(2) Gateway station.--The term `gateway station' means an 
        earth station or a group of earth stations that--
                  ``(A) supports the routing and switching functions of 
                a geostationary orbit satellite system or a 
                nongeostationary orbit satellite system;
                  ``(B) may also be used for telemetry, tracking, and 
                command transmissions;
                  ``(C) does not originate or terminate communication 
                traffic; and
                  ``(D) is not for the exclusive use of any customer.
          ``(3) Individually licensed earth station.--The term 
        `individually licensed earth station' means--
                  ``(A) an earth station (other than a blanket-licensed 
                earth station) that sends a signal to, and receives a 
                signal from, a geostationary orbit satellite system or 
                a nongeostationary orbit satellite system; or
                  ``(B) a gateway station.''.
  (b) Applicability.--Section 10 of the Secure and Trusted 
Communications Networks Act of 2019, as added by subsection (a), shall 
apply with respect to the grant of a license, petition, or 
authorization on or after the date of the enactment of this Act.
  (c) Rules.--Not later than 1 year after the date of the enactment of 
this Act, the Federal Communications Commission shall issue rules to 
implement section 10 of the Secure and Trusted Communications Networks 
Act of 2019, as added by subsection (a).

    Amend the title so as to read:
    A bill to amend the Secure and Trusted Communications 
Networks Act of 2019 to prohibit the Federal Communications 
Commission from granting a license or United States market 
access for a geostationary orbit satellite system or a 
nongeostationary orbit satellite system, or an authorization to 
use an individually licensed earth station or a blanket-
licensed earth station, if the license, grant of market access, 
or authorization would be held or controlled by an entity that 
produces or provides any covered communications equipment or 
service or an affiliate of such an entity, and for other 
purposes.

                          Purpose and Summary

    H.R. 675, the ``Secure Space Act of 2023'' would amend the 
Secure and Trusted Communications Network Act of 2019 by adding 
a new section preventing the Federal Communications Commission 
(FCC) from granting a license for, or a petition for 
declaratory ruling to access the United States market using, a 
geostationary orbit (GSO) satellite system or a non-
geostationary orbit (NGSO) satellite system, or an 
authorization to use an individually licensed earth station or 
a blanket-licensed earth station, if the license, grant of 
market access, or authorization would be held or controlled by 
an entity that produces or provides any communications 
equipment or service on the FCC's covered list (a list 
identifying communications equipment and services that pose a 
unacceptable risk to U.S. national security) or an affiliate of 
such entity (as defined in the Communications Act of 1934). 
H.R. 675 would also require the FCC to issue rules one year 
after the bill's enactment to implement this legislation.

                  Background and Need for Legislation

    In the last few years, the United States has seen 
significant advancements in the ability of satellites to 
provide broadband internet and other critical services to 
consumers and businesses throughout the country and the world. 
In fact, American satellite operators are leading the world in 
developing next-generation space technologies, services, and 
applications. These developments have been especially 
beneficial to Americans living in areas where other types of 
technologies have not been built yet to provide communications 
services to American homes and businesses due to geographic 
considerations and other factors.
    However, it is also the case that other countries, 
including foreign adversaries of the United States, are making 
aggressive moves to dominate the satellite industry. Indeed, 
the Chinese Communist Party has placed satellite internet in 
its list of priorities for new infrastructure,\1\ signaling 
increased investment in this burgeoning sector. And in the last 
few years, the combined satellite fleets of China and Russia 
have grown by approximately 70 percent.\2\
---------------------------------------------------------------------------
    \1\Makena Young & Akhil Thadani, Low Orbit, High Stakes, Center for 
Strategic & International Studies (Dec. 14, 2022).
    \2\Defense Intelligence Agency, Challenges to Security in Space 
(2022).
---------------------------------------------------------------------------
    In light of these developments, it is imperative that 
Congress take the necessary steps to ensure that satellite 
networks providing service in the United States are secure and 
protected (along with their relevant supply chains) from 
threats by untrusted actors. The United States cannot risk 
having its satellite networks face the same national security 
challenges that certain domestic terrestrial communications 
networks have faced, especially given the global nature of 
satellite network operations. Accordingly, H.R. 675 addresses 
these concerns by preventing an entity producing or providing 
communications equipment or services that have been identified 
as a national security risk (or an affiliate as defined in the 
Communications Act of 1934) from gaining access to the U.S. 
satellite marketplace.

                            Committee Action

    On February 2, 2023, the Subcommittee on Communications and 
Technology held a hearing entitled, ``Launching Into the State 
of the Satellite Marketplace.'' The Subcommittee received 
testimony from:
           Tom Stroup, President, Satellite Industry 
        Association
           Julie Zoller, Head of Global Regulatory 
        Affairs, Project Kuiper at Amazon
           Jennifer A. Manner, Senior Vice President of 
        Regulatory Affairs, Echostar Corporation
           Margo Deckard, Co-Founder and Chief 
        Operating Officer, Lynk Global, Inc.
           Kari Bingen, Director of the Aerospace 
        Security Project and Senior Fellow at the International 
        Security Program, Center for Strategic and 
        International Studies.
    On February 8, 2023, the Subcommittee on Communications and 
Technology held a hearing entitled, ``Liftoff: Unleashing 
Innovation in Satellite Communications Technologies.'' The 
Subcommittee received testimony on H.R. 675 from:
           David Goldman, Senior Director of Satellite 
        Policy, SpaceX
           Peter Davidson, Vice President of Global 
        Government Affairs & Policy, Intelsat
           Whitney Q. Lohmeyer, Professor of 
        Engineering, Olin College of Engineering
           Danielle Pineres, Vice President of 
        Regulatory Affairs & Compliance, Planet Labs
    On March 8, 2023, the Subcommittee on Communications and 
Technology met in open markup session and forwarded H.R. 675, 
as amended, to the full Committee by a record vote of 26 yeas 
and 0 nays. On March 23, 2023, the full Committee on Energy and 
Commerce met in open markup session and ordered H.R. 675, as 
amended, favorably reported to the House by a record vote of 46 
yeas and 0 nays.

                            Committee Votes

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. The following reflects the record votes taken during 
the Committee consideration:


                 Oversight Findings and Recommendations

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held hearings and made findings that 
are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 675 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, at the time this 
report was filed, the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not available.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to 
prohibit the Federal Communications Commission from granting a 
license, market access, or an authorization to an entity 
producing or providing communications equipment or services 
that have been identified as a national security risk (or an 
affiliate as defined in the Communications Act of 1934) to 
operate a geostationary orbit satellite system or a non-
geostationary orbit satellite system, or to use an individually 
licensed earth station or a blanket-licensed earth station, in 
the United States.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 675 is known to be duplicative of another Federal program, 
including any program that was included in a report to Congress 
pursuant to section 21 of Public Law 111-139 or the most recent 
Catalog of Federal Domestic Assistance.

              Related Committee and Subcommittee Hearings

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearings were used to develop or consider H.R. 675:
    On February 2, 2023, the Subcommittee on Communications and 
Technology held a hearing entitled, ``Launching Into the State 
of the Satellite Marketplace.'' The Subcommittee received 
testimony from:
           Tom Stroup, President, Satellite Industry 
        Association
           Julie Zoller, Head of Global Regulatory 
        Affairs, Project Kuiper at Amazon
           Jennifer A. Manner, Senior Vice President of 
        Regulatory Affairs, Echostar Corporation
           Margo Deckard, Co-Founder and Chief 
        Operating Officer, Lynk Global, Inc.
           Kari Bingen, Director of the Aerospace 
        Security Project and Senior Fellow at the International 
        Security Program, Center for Strategic and 
        International Studies.
    On February 8, 2023, the Subcommittee on Communications and 
Technology held a hearing entitled, ``Liftoff: Unleashing 
Innovation in Satellite Communications Technologies.'' The 
Subcommittee received testimony on H.R. 675 from:
           David Goldman, Senior Director of Satellite 
        Policy, SpaceX
           Peter Davidson, Vice President of Global 
        Government Affairs & Policy, Intelsat
           Whitney Q. Lohmeyer, Professor of 
        Engineering, Olin College of Engineering
           Danielle Pieres, Vice President of 
        Regulatory Affairs & Compliance, Planet Labs

                        Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974. At the time this report was 
filed, the estimate was not available.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 675 contains no earmarks, limited tax 
benefits, or limited tariff benefits.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section designates that the short title may be cited 
as the ``Secure Space Act of 2023''.

Section 2. Prohibition on grant of certain licenses, United States 
        market access, or earth station authorizations

    This section would amend the Secure and Trusted 
Communications Networks Act of 2019 by adding a new section to 
prevent the FCC from granting a license for, or a petition for 
declaratory ruling to access the United States market using, 
GSO satellite system or NGSO satellite system, or an 
authorization to use an individually licensed earth station or 
a blanket-licensed earth station if the license, grant of 
market access, or authorization would be held or controlled by 
an entity that produces or provides any communications 
equipment or service on the FCC's covered list or an affiliate 
of such entity (as defined in the Communications Act of 1934). 
This section would also require the FCC to issue rules one year 
after the Act's enactment to implement this legislation and 
defines key terms used in the legislation.

         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 italics, and existing law in which no 
change is proposed is shown in roman):

         SECURE AND TRUSTED COMMUNICATIONS NETWORKS ACT OF 2019



           *       *       *       *       *       *       *
SEC. 9. DEFINITIONS.

  In this Act:
          (1) Advanced communications service.--The term 
        ``advanced communications service'' has the meaning 
        given the term ``advanced telecommunications 
        capability'' in section 706 of the Telecommunications 
        Act of 1996 (47 U.S.C. 1302).
          (2) Appropriate national security agency.--The term 
        ``appropriate national security agency'' means--
                  (A) the Department of Homeland Security;
                  (B) the Department of Defense;
                  (C) the Office of the Director of National 
                Intelligence;
                  (D) the National Security Agency; and
                  (E) the Federal Bureau of Investigation.
          (3) Commission.--The term ``Commission'' means the 
        Federal Communications Commission.
          (4) Communications equipment or service.--The term 
        ``communications equipment or service'' means any 
        equipment or service that is essential to the provision 
        of advanced communications service.
          (5) Covered communications equipment or service.--The 
        term ``covered communications equipment or service'' 
        means any communications equipment or service that is 
        on the list published by the Commission under section 
        2(a).
          (6) Customers.--The term ``customers'' means, with 
        respect to a provider of advanced communications 
        service--
                  (A) the customers of such provider; and
                  (B) the customers of any affiliate (as 
                defined in section 3 of the Communications Act 
                of 1934 (47 U.S.C. 153)) of such provider.
          (7) Executive branch interagency body.--The term 
        ``executive branch interagency body'' means an 
        interagency body established in the executive branch.
          (8) Person.--The term ``person'' means an individual 
        or entity.
          (9) Program.--The term ``Program'' means the Secure 
        and Trusted Communications Networks Reimbursement 
        Program established under section 4(a).
          (10) Provider of advanced communications service.--
        The term ``provider of advanced communications 
        service''--
                  (A) means a person who provides advanced 
                communications service to United States 
                customers; and
                  (B) includes--
                          (i) accredited public or private 
                        noncommercial educational institutions, 
                        providing their own facilities-based 
                        educational broadband service, as 
                        defined in section 27.4 of title 47, 
                        Code of Federal Regulations, or any 
                        successor regulation; and
                          (ii) health care providers and 
                        libraries providing advanced 
                        communications service.
          (11) Recipient.--The term ``recipient'' means any 
        provider of advanced communications service the 
        application of which for a reimbursement under the 
        Program has been approved by the Commission, regardless 
        of whether the provider has received reimbursement 
        funds.
          (12) Reimbursement funds.--The term ``reimbursement 
        funds'' means any reimbursement received under the 
        Program.

SEC. 10. PROHIBITION ON GRANT OF CERTAIN SATELLITE LICENSES, UNITED 
                    STATES MARKET ACCESS, OR EARTH STATION 
                    AUTHORIZATIONS.

  (a) In General.--The Commission may not grant a license for, 
or a petition for a declaratory ruling to access the United 
States market using, a geostationary orbit satellite system or 
a nongeostationary orbit satellite system, or an authorization 
to use an individually licensed earth station or a blanket-
licensed earth station, if such license, grant of market 
access, or authorization would be held or controlled by--
          (1) an entity that produces or provides any covered 
        communications equipment or service; or
          (2) an affiliate (as defined in section 3 of the 
        Communications Act of 1934 (47 U.S.C. 153)) of an 
        entity described in paragraph (1).
  (b) Definitions.--In this section:
          (1) Blanket-licensed earth station.--The term 
        ``blanket-licensed earth station'' means an earth 
        station that is licensed with a geostationary orbit 
        satellite system or a nongeostationary orbit satellite 
        system.
          (2) Gateway station.--The term ``gateway station'' 
        means an earth station or a group of earth stations 
        that--
                  (A) supports the routing and switching 
                functions of a geostationary orbit satellite 
                system or a nongeostationary orbit satellite 
                system;
                  (B) may also be used for telemetry, tracking, 
                and command transmissions;
                  (C) does not originate or terminate 
                communication traffic; and
                  (D) is not for the exclusive use of any 
                customer.
          (3) Individually licensed earth station.--The term 
        ``individually licensed earth station'' means--
                  (A) an earth station (other than a blanket-
                licensed earth station) that sends a signal to, 
                and receives a signal from, a geostationary 
                orbit satellite system or a nongeostationary 
                orbit satellite system; or
                  (B) a gateway station.

SEC. [10.]  11. SEVERABILITY.

  If any provision of this Act, or the application of such a 
provision to any person or circumstance, is held to be 
unconstitutional, the remaining provisions of this Act, and the 
application of such provisions to any person or circumstance, 
shall not be affected thereby.

SEC. [11.]  12. DETERMINATION OF BUDGETARY EFFECTS.

  The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, shall 
be determined by reference to the latest statement titled 
``Budgetary Effects of PAYGO Legislation'' for this Act, 
submitted for printing in the Congressional Record by the 
Chairman of the House Budget Committee, provided that such 
statement has been submitted prior to the vote on passage.