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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-347
_______________________________________________________________________


 
                      COMMERCIAL SPACE ACT OF 1997

_______________________________________________________________________


October 24, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Sensenbrenner, from the Committee on Science, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1702]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science, to whom was referred the bill 
(H.R. 1702) To encourage the development of a commercial space 
industry in the United States, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.


                            C O N T E N T S

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill............................................13
 III. Background and Need for the Legislation........................13
  IV. Summary of Hearings............................................14
   V. Summary of Major Provisions of the Bill........................18
  VI. Section-by-Section Analysis (By Title and Section) and Committee 
      Views..........................................................19
 VII. Committee Cost Estimate........................................32
VIII. Congressional Budget Office Cost Estimate......................33
  IX. Compliance with Public Law 104-4...............................36
   X. Committee Oversight Findings and Recommendations...............36
  XI. Oversight Findings and Recommendations by the Committee on 
      Government Reform and Oversight................................36
 XII. Constitutional Authority Statement.............................36
XIII. Federal Advisory Committee Statement...........................36
 XIV. Congressional Accountability Act...............................36
  XV. Effects of Legislation on Inflation............................37
 XVI. Changes in Existing Law Made by the Bill, as Reported..........37
XVII. Committee Recommendations......................................60
XVIII.Proceedings of Subcommittee Markup.............................61

  IX. Proceedings of Full Committee Markup..........................117

                              I. Amendment

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Commercial Space 
Act of 1997''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

          TITLE I--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

Sec. 101. Commercialization of space station.
Sec. 102. Commercial space launch amendments.
Sec. 103. Launch voucher demonstration program.
Sec. 104. Promotion of United States Global Positioning System 
standards.
Sec. 105. Acquisition of space science data.
Sec. 106. Administration of Commercial Space Centers.

                        TITLE II--REMOTE SENSING

Sec. 201. Land Remote Sensing Policy Act of 1992 amendments.
Sec. 202. Acquisition of earth science data.

    TITLE III--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

Sec. 301. Requirement to procure commercial space transportation 
services.
Sec. 302. Acquisition of space transportation services.
Sec. 303. Launch Services Purchase Act of 1990 amendments.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Administrator'' means the Administrator of 
        the National Aeronautics and Space Administration;
            (2) the term ``commercial provider'' means any person 
        providing space transportation services or other space-related 
        activities, primary control of which is held by persons other 
        than Federal, State, local, and foreign governments;
            (3) the term ``payload'' means anything that a person 
        undertakes to transport to, from, or within outer space, or in 
        suborbital trajectory, by means of a space transportation 
        vehicle, but does not include the space transportation vehicle 
        itself except for its components which are specifically 
        designed or adapted for that payload;
            (4) the term ``space-related activities'' includes research 
        and development, manufacturing, processing, service, and other 
        associated and support activities;
            (5) the term ``space transportation services'' means the 
        preparation of a space transportation vehicle and its payloads 
        for transportation to, from, or within outer space, or in 
        suborbital trajectory, and the conduct of transporting a 
        payload to, from, or within outer space, or in suborbital 
        trajectory;
            (6) the term ``space transportation vehicle'' means any 
        vehicle constructed for the purpose of operating in, or 
        transporting a payload to, from, or within, outer space, or in 
        suborbital trajectory, and includes any component of such 
        vehicle not specifically designed or adapted for a payload;
            (7) the term ``State'' means each of the several States of 
        the Union, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and any other 
        commonwealth, territory, or possession of the United States; 
        and
            (8) the term ``United States commercial provider'' means a 
        commercial provider, organized under the laws of the United 
        States or of a State, which is--
                    (A) more than 50 percent owned by United States 
                nationals; or
                    (B) a subsidiary of a foreign company and the 
                Secretary of Transportation finds that--
                            (i) such subsidiary has in the past 
                        evidenced a substantial commitment to the 
                        United States market through--
                                    (I) investments in the United 
                                States in long-term research, 
                                development, and manufacturing 
                                (including the manufacture of major 
                                components and subassemblies); and
                                    (II) significant contributions to 
                                employment in the United States; and
                            (ii) the country or countries in which such 
                        foreign company is incorporated or organized, 
                        and, if appropriate, in which it principally 
                        conducts its business, affords reciprocal 
                        treatment to companies described in 
                        subparagraph (A) comparable to that afforded to 
                        such foreign company's subsidiary in the United 
                        States, as evidenced by--
                                    (I) providing comparable 
                                opportunities for companies described 
                                in subparagraph (A) to participate in 
                                Government sponsored research and 
                                development similar to that authorized 
                                under this Act;
                                    (II) providing no barriers, to 
                                companies described in subparagraph (A) 
                                with respect to local investment 
                                opportunities, that are not provided to 
                                foreign companies in the United States; 
                                and
                                    (III) providing adequate and 
                                effective protection for the 
                                intellectual property rights of 
                                companies described in subparagraph 
                                (A).

          TITLE I--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

SEC. 101. COMMERCIALIZATION OF SPACE STATION.

    (a) Policy.--The Congress declares that a priority goal of 
constructing the International Space Station is the economic 
development of Earth orbital space. The Congress further declares that 
free and competitive markets create the most efficient conditions for 
promoting economic development, and should therefore govern the 
economic development of Earth orbital space. The Congress further 
declares that the use of free market principles in operating, 
servicing, allocating the use of, and adding capabilities to the Space 
Station, and the resulting fullest possible engagement of commercial 
providers and participation of commercial users, will reduce Space 
Station operational costs for all partners and the Federal Government's 
share of the United States burden to fund operations.
    (b) Reports.--(1) The Administrator shall deliver to the Committee 
on Science of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate, within 90 days 
after the date of the enactment of this Act, a study that identifies 
and examines--
            (A) the opportunities for commercial providers to play a 
        role in International Space Station activities, including 
        operation, use, servicing, and augmentation;
            (B) the potential cost savings to be derived from 
        commercial providers playing a role in each of these 
        activities;
            (C) which of the opportunities described in subparagraph 
        (A) the Administrator plans to make available to commercial 
        providers in fiscal year 1998 and 1999;
            (D) the specific policies and initiatives the Administrator 
        is advancing to encourage and facilitate these commercial 
        opportunities; and
            (E) the revenues and cost reimbursements to the Federal 
        Government from commercial users of the Space Station.
    (2) The Administrator shall deliver to the Committee on Science of 
the House of Representatives and the Committee on Commerce, Science, 
and Transportation of the Senate, within 180 days after the date of the 
enactment of this Act, an independently-conducted market study that 
examines and evaluates potential industry interest in providing 
commercial goods and services for the operation, servicing, and 
augmentation of the International Space Station, and in the commercial 
use of the International Space Station. This study shall also include 
updates to the cost savings and revenue estimates made in the study 
described in paragraph (1) based on the external market assessment.
    (3) The Administrator shall deliver to the Congress, no later than 
the submission of the President's annual budget request for fiscal year 
1999, a report detailing how many proposals (whether solicited or not) 
the National Aeronautics and Space Administration received during 
calendar year 1997 regarding commercial operation, servicing, 
utilization, or augmentation of the International Space Station, broken 
down by each of these four categories, and specifying how many 
agreements the National Aeronautics and Space Administration has 
entered into in response to these proposals, also broken down by these 
four categories.
    (4) Each of the studies and reports required by paragraphs (1), 
(2), and (3) shall include consideration of the potential role of State 
governments as brokers in promoting commercial participation in the 
International Space Station program.

SEC. 102. COMMERCIAL SPACE LAUNCH AMENDMENTS.

    (a) Amendments.--Chapter 701 of title 49, United States Code, is 
amended--
            (1) in the table of sections--
                    (A) by amending the item relating to section 70104 
                to read as follows:

``70104. Restrictions on launches, operations, and reentries.'';

                    (B) by amending the item relating to section 70108 
                to read as follows:

``70108. Prohibition, suspension, and end of launches, operation of 
launch sites and reentry sites, and reentries.'';

                    (C) by amending the item relating to section 70109 
                to read as follows:

``70109. Preemption of scheduled launches or reentries.'';

                and
                    (D) by adding at the end the following new items:

``70120. Regulations.
``70121. Report to Congress.''.

            (2) in section 70101--
                    (A) by inserting ``microgravity research,'' after 
                ``information services,'' in subsection (a)(3);
                    (B) by inserting ``, reentry,'' after ``launching'' 
                both places it appears in subsection (a)(4);
                    (C) by inserting ``, reentry vehicles,'' after 
                ``launch vehicles'' in subsection (a)(5);
                    (D) by inserting ``and reentry services'' after 
                ``launch services'' in subsection (a)(6);
                    (E) by inserting ``, reentries,'' after 
                ``launches'' both places it appears in subsection 
                (a)(7);
                    (F) by inserting ``, reentry sites,'' after 
                ``launch sites'' in subsection (a)(8);
                    (G) by inserting ``and reentry services'' after 
                ``launch services'' in subsection (a)(8);
                    (H) by inserting ``reentry sites,'' after ``launch 
                sites,'' in subsection (a)(9);
                    (I) by inserting ``and reentry site'' after 
                ``launch site'' in subsection (a)(9);
                    (J) by inserting ``, reentry vehicles,'' after 
                ``launch vehicles'' in subsection (b)(2);
                    (K) by striking ``launch'' in subsection (b)(2)(A);
                    (L) by inserting ``and reentry'' after ``conduct of 
                commercial launch'' in subsection (b)(3);
                    (M) by striking ``launch'' after ``and transfer 
                commercial'' in subsection (b)(3); and
                    (N) by inserting ``and development of reentry 
                sites,'' after ``launch-site support facilities,'' in 
                subsection (b)(4);
            (3) in section 70102--
                    (A) in paragraph (3)--
                            (i) by striking ``and any payload'' and 
                        inserting in lieu thereof ``or reentry vehicle 
                        and any payload from Earth'';
                            (ii) by striking the period at the end of 
                        subparagraph (C) and inserting in lieu thereof 
                        a comma; and
                            (iii) by adding after subparagraph (C) the 
                        following:
        ``including activities involved in the preparation of a launch 
        vehicle or payload for launch, when those activities take place 
        at a launch site in the United States.'';
                    (B) in paragraph (5)--
                            (i) by redesignating subparagraphs (A) and 
                        (B) as subparagraphs (B) and (C), respectively; 
                        and
                            (ii) by inserting before subparagraph (B), 
                        as so redesignated by clause (i) of this 
                        subparagraph, the following new subparagraph:
                    ``(A) activities directly related to the 
                preparation of a launch site or payload facility for 
                one or more launches;'';
                    (C) by inserting ``or reentry vehicle'' after 
                ``means of a launch vehicle'' in paragraph (8);
                    (D) by redesignating paragraphs (10), (11), and 
                (12) as paragraphs (14), (15), and (16), respectively;
                    (E) by inserting after paragraph (9) the following 
                new paragraphs:
            ``(10) `reenter' and `reentry' mean to return or attempt to 
        return, purposefully, a reentry vehicle and its payload, if 
        any, from Earth orbit or from outer space to Earth.
            ``(11) `reentry services' means--
                    ``(A) activities involved in the preparation of a 
                reentry vehicle and its payload, if any, for reentry; 
                and
                    ``(B) the conduct of a reentry.
            ``(12) `reentry site' means the location on Earth to which 
        a reentry vehicle is intended to return (as defined in a 
        license the Secretary issues or transfers under this chapter).
            ``(13) `reentry vehicle' means a vehicle designed to return 
        from Earth orbit or outer space to Earth, or a reusable launch 
        vehicle designed to return from outer space to Earth, 
        substantially intact.''; and
                    (F) by inserting ``or reentry services'' after 
                ``launch services'' each place it appears in paragraph 
                (15), as so redesignated by subparagraph (D) of this 
                paragraph;
            (4) in section 70103(b)--
                    (A) by inserting ``and Reentries'' after 
                ``Launches'' in the subsection heading;
                    (B) by inserting ``and reentries'' after 
                ``commercial space launches'' in paragraph (1); and
                    (C) by inserting ``and reentry'' after ``space 
                launch'' in paragraph (2);
            (5) in section 70104--
                    (A) by amending the section designation and heading 
                to read as follows:

``Sec. 70104. Restrictions on launches, operations, and reentries'';

                    (B) by inserting ``or reentry site, or to reenter a 
                reentry vehicle,'' after ``operate a launch site'' each 
                place it appears in subsection (a);
                    (C) by inserting ``or reentry'' after ``launch or 
                operation'' in subsection (a)(3) and (4);
                    (D) in subsection (b)--
                            (i) by striking ``launch license'' and 
                        inserting in lieu thereof ``license'';
                            (ii) by inserting ``or reenter'' after 
                        ``may launch''; and
                            (iii) by inserting ``or reentering'' after 
                        ``related to launching''; and
                    (E) in subsection (c)--
                            (i) by amending the subsection heading to 
                        read as follows: ``Preventing Launches and 
                        Reentries.--'';
                            (ii) by inserting ``or reentry'' after 
                        ``prevent the launch''; and
                            (iii) by inserting ``or reentry'' after 
                        ``decides the launch'';
            (6) in section 70105--
                    (A) by inserting ``(1)'' before ``A person may 
                apply'' in subsection (a);
                    (B) by striking ``receiving an application'' both 
                places it appears in subsection (a) and inserting in 
                lieu thereof ``accepting an application in accordance 
                with criteria established pursuant to subsection 
                (b)(2)(D)'';
                    (C) by adding at the end of subsection (a) the 
                following: ``The Secretary shall transmit to the 
                Committee on Science of the House of Representatives 
                and the Committee on Commerce, Science, and 
                Transportation of the Senate a written notice not later 
                than 30 days after any occurrence when a license is not 
                issued within the deadline established by this 
                subsection.
    ``(2) In carrying out paragraph (1), the Secretary may establish 
procedures for safety approvals of launch vehicles, reentry vehicles, 
safety systems, processes, services, or personnel that may be used in 
conducting licensed commercial space launch or reentry activities.'';
                    (D) by inserting ``or a reentry site, or the 
                reentry of a reentry vehicle,'' after ``operation of a 
                launch site'' in subsection (b)(1);
                    (E) by striking ``or operation'' and inserting in 
                lieu thereof ``, operation, or reentry'' in subsection 
                (b)(2)(A);
                    (F) by striking ``and'' at the end of subsection 
                (b)(2)(B);
                    (G) by striking the period at the end of subsection 
                (b)(2)(C) and inserting in lieu thereof ``; and'';
                    (H) by adding at the end of subsection (b)(2) the 
                following new subparagraph:
            ``(D) regulations establishing criteria for accepting or 
        rejecting an application for a license under this chapter 
        within 60 days after receipt of such application.''; and
                    (I) by inserting ``, including the requirement to 
                obtain a license,'' after ``waive a requirement'' in 
                subsection (b)(3);
            (7) in section 70106(a)--
                    (A) by inserting ``or reentry site'' after 
                ``observer at a launch site'';
                    (B) by inserting ``or reentry vehicle'' after 
                ``assemble a launch vehicle''; and
                    (C) by inserting ``or reentry vehicle'' after 
                ``with a launch vehicle'';
            (8) in section 70108--
                    (A) by amending the section designation and heading 
                to read as follows:

``Sec. 70108. Prohibition, suspension, and end of launches, operation 
                    of launch sites and reentry sites, and reentries'';

                and
                    (B) in subsection (a)--
                            (i) by inserting ``or reentry site, or 
                        reentry of a reentry vehicle,'' after 
                        ``operation of a launch site''; and
                            (ii) by inserting ``or reentry'' after 
                        ``launch or operation'';
            (9) in section 70109--
                    (A) by amending the section designation and heading 
                to read as follows:

``Sec. 70109. Preemption of scheduled launches or reentries'';

                    (B) in subsection (a)--
                            (i) by inserting ``or reentry'' after 
                        ``ensure that a launch'';
                            (ii) by inserting ``, reentry site,'' after 
                        ``United States Government launch site'';
                            (iii) by inserting ``or reentry date 
                        commitment'' after ``launch date commitment'';
                            (iv) by inserting ``or reentry'' after 
                        ``obtained for a launch'';
                            (v) by inserting ``, reentry site,'' after 
                        ``access to a launch site'';
                            (vi) by inserting ``, or services related 
                        to a reentry,'' after ``amount for launch 
                        services''; and
                            (vii) by inserting ``or reentry'' after 
                        ``the scheduled launch''; and
                    (C) in subsection (c), by inserting ``or reentry'' 
                after ``prompt launching'';
            (10) in section 70110--
                    (A) by inserting ``or reentry'' after ``prevent the 
                launch'' in subsection (a)(2); and
                    (B) by inserting ``or reentry site, or reentry of a 
                reentry vehicle,'' after ``operation of a launch site'' 
                in subsection (a)(3)(B);
            (11) in section 70111--
                    (A) by inserting ``or reentry'' after ``launch'' in 
                subsection (a)(1)(A);
                    (B) by inserting ``and reentry services'' after 
                ``launch services'' in subsection (a)(1)(B);
                    (C) by inserting ``or reentry services'' after ``or 
                launch services'' in subsection (a)(2);
                    (D) by inserting ``or reentry'' after ``commercial 
                launch'' both places it appears in subsection (b)(1);
                    (E) by inserting ``or reentry services'' after 
                ``launch services'' in subsection (b)(2)(C);
                    (F) by inserting after subsection (b)(2) the 
                following new paragraph:
    ``(3) The Secretary shall ensure the establishment of uniform 
guidelines for, and consistent implementation of, this section by all 
Federal agencies.'';
                    (G) by striking ``or its payload for launch'' in 
                subsection (d) and inserting in lieu thereof ``or 
                reentry vehicle, or the payload of either, for launch 
                or reentry''; and
                    (H) by inserting ``, reentry vehicle,'' after 
                ``manufacturer of the launch vehicle'' in subsection 
                (d);
            (12) in section 70112--
                    (A) in subsection (a)(1), by inserting ``launch or 
                reentry'' after ``(1) When a'';
                    (B) by inserting ``or reentry'' after ``one 
                launch'' in subsection (a)(3);
                    (C) by inserting ``or reentry services'' after 
                ``launch services'' in subsection (a)(4);
                    (D) in subsection (b)(1), by inserting ``launch or 
                reentry'' after ``(1) A'';
                    (E) by inserting ``or reentry services'' after 
                ``launch services'' each place it appears in subsection 
                (b);
                    (F) by inserting ``applicable'' after ``carried out 
                under the'' in paragraphs (1) and (2) of subsection 
                (b);
                    (G) by striking ``, Space, and Technology'' in 
                subsection (d)(1);
                    (H) by inserting ``or Reentries'' after 
                ``Launches'' in the heading for subsection (e);
                    (I) by inserting ``or reentry site or a reentry'' 
                after ``launch site'' in subsection (e); and
                    (J) in subsection (f), by inserting ``launch or 
                reentry'' after ``carried out under a'';
            (13) in section 70113(a)(1) and (d)(1) and (2), by 
        inserting ``or reentry'' after ``one launch'' each place it 
        appears;
            (14) in section 70115(b)(1)(D)(i)--
                    (A) by inserting ``reentry site,'' after ``launch 
                site,''; and
                    (B) by inserting ``or reentry vehicle'' after 
                ``launch vehicle'' both places it appears;
            (15) in section 70117--
                    (A) by inserting ``or reentry site, or to reenter a 
                reentry vehicle'' after ``operate a launch site'' in 
                subsection (a);
                    (B) by inserting ``or reentry'' after ``approval of 
                a space launch'' in subsection (d);
                    (C) by amending subsection (f) to read as follows:
    ``(f) Launch Not an Export; Reentry Not an Import.--A launch 
vehicle, reentry vehicle, or payload that is launched or reentered is 
not, because of the launch or reentry, an export or import, 
respectively, for purposes of a law controlling exports or imports.''; 
and
                    (D) in subsection (g)--
                            (i) by striking ``operation of a launch 
                        vehicle or launch site,'' in paragraph (1) and 
                        inserting in lieu thereof ``reentry, operation 
                        of a launch vehicle or reentry vehicle, 
                        operation of a launch site or reentry site,''; 
                        and
                            (ii) by inserting ``reentry,'' after 
                        ``launch,'' in paragraph (2); and
            (16) by adding at the end the following new sections:

``Sec. 70120. Regulations

    ``(a) In General.--The Secretary of Transportation, within 9 months 
after the date of the enactment of this section, shall issue 
regulations to carry out this chapter that include--
            ``(1) guidelines for industry and State governments to 
        obtain sufficient insurance coverage for potential damages to 
        third parties;
            ``(2) procedures for requesting and obtaining licenses to 
        launch a commercial launch vehicle;
            ``(3) procedures for requesting and obtaining operator 
        licenses for launch;
            ``(4) procedures for requesting and obtaining launch site 
        operator licenses; and
            ``(5) procedures for the application of government 
        indemnification.
    ``(b) Reentry.--The Secretary of Transportation, within 6 months 
after the date of the enactment of this section, shall issue a notice 
of proposed rulemaking to carry out this chapter that includes--
            ``(1) procedures for requesting and obtaining licenses to 
        reenter a reentry vehicle;
            ``(2) procedures for requesting and obtaining operator 
        licenses for reentry; and
            ``(3) procedures for requesting and obtaining reentry site 
        operator licenses.

``Sec. 70121. Report to Congress

    ``The Secretary of Transportation shall submit to Congress an 
annual report to accompany the President's budget request that--
            ``(1) describes all activities undertaken under this 
        chapter, including a description of the process for the 
        application for and approval of licenses under this chapter and 
        recommendations for legislation that may further commercial 
        launches and reentries; and
            ``(2) reviews the performance of the regulatory activities 
        and the effectiveness of the Office of Commercial Space 
        Transportation.''.
    (b) Effective Date.--The amendments made by subsection (a)(6)(B) 
shall take effect upon the effective date of final regulations issued 
pursuant to section 70105(b)(2)(D) of title 49, United States Code, as 
added by subsection (a)(6)(H).

SEC. 103. LAUNCH VOUCHER DEMONSTRATION PROGRAM.

    Section 504 of the National Aeronautics and Space Administration 
Authorization Act, Fiscal Year 1993 (15 U.S.C. 5803) is amended--
            (1) in subsection (a)--
                    (A) by striking ``the Office of Commercial Programs 
                within''; and
                    (B) by striking ``Such program shall not be 
                effective after September 30, 1995.'';
            (2) by striking subsection (c); and
            (3) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.

SEC. 104. PROMOTION OF UNITED STATES GLOBAL POSITIONING SYSTEM 
                    STANDARDS.

    (a) Finding.--The Congress finds that the Global Positioning 
System, including satellites, signal equipment, ground stations, data 
links, and associated command and control facilities, has become an 
essential element in civil, scientific, and military space development 
because of the emergence of a United States commercial industry which 
provides Global Positioning System equipment and related services.
    (b) International Cooperation.--In order to support and sustain the 
Global Positioning System in a manner that will most effectively 
contribute to the national security, public safety, scientific, and 
economic interests of the United States, the Congress encourages the 
President to--
            (1) ensure the operation of the Global Positioning System 
        on a continuous worldwide basis free of direct user fees; and
            (2) enter into international agreements that promote 
        cooperation with foreign governments and international 
        organizations to--
                    (A) establish the Global Positioning System and its 
                augmentations as an acceptable international standard; 
                and
                    (B) eliminate any foreign barriers to applications 
                of the Global Positioning System worldwide.

SEC. 105. ACQUISITION OF SPACE SCIENCE DATA.

    (a) Acquisition From Commercial Providers.--The Administrator 
shall, to the maximum extent possible and while satisfying the 
scientific requirements of the National Aeronautics and Space 
Administration, acquire, where cost effective, space science data from 
a commercial provider.
    (b) Treatment of Space Science Data as Commercial Item Under 
Acquisition Laws.--Acquisitions of space science data by the 
Administrator shall be carried out in accordance with applicable 
acquisition laws and regulations (including chapters 137 and 140 of 
title 10, United States Code), except that space science data shall be 
considered to be a commercial item for purposes of such laws and 
regulations (including section 2306a of title 10, United States Code 
(relating to cost or pricing data), section 2320 of such title 
(relating to rights in technical data) and section 2321 of such title 
(relating to validation of proprietary data restrictions)).
    (c) Definition.--For purposes of this section, the term ``space 
science data'' includes scientific data concerning the elemental and 
mineralogical resources of the moon, asteroids, planets and their 
moons, and comets, and solar storm monitoring.
    (d) Safety Standards.--Nothing in this section shall be construed 
to prohibit the Federal Government from requiring compliance with 
applicable safety standards.
    (e) Limitation.--This section does not authorize the National 
Aeronautics and Space Administration to provide financial assistance 
for the development of commercial systems for the collection of space 
science data.

SEC. 106. ADMINISTRATION OF COMMERCIAL SPACE CENTERS.

    The Administrator shall administer the Commercial Space Center 
program in a coordinated manner from National Aeronautics and Space 
Administration headquarters.

                        TITLE II--REMOTE SENSING

SEC. 201. LAND REMOTE SENSING POLICY ACT OF 1992 AMENDMENTS.

    (a) Findings.--The Congress finds that--
            (1) a robust domestic United States industry in high 
        resolution Earth remote sensing is in the economic, employment, 
        technological, scientific, and national security interests of 
        the United States;
            (2) to secure its national interests the United States must 
        nurture a commercial remote sensing industry that leads the 
        world;
            (3) the Federal Government must provide policy and 
        regulations that promote a stable business environment for that 
        industry to succeed and fulfill the national interest;
            (4) it is the responsibility of the Federal Government to 
        create domestic and international conditions favorable to the 
        health and growth of the United States commercial remote 
        sensing industry; and
            (5) it is a fundamental goal of United States policy to 
        support and enhance United States industrial competitiveness in 
        the field of remote sensing, while at the same time protecting 
        the national security concerns and international obligations of 
        the United States.
    (b) Amendments.--The Land Remote Sensing Policy Act of 1992 is 
amended--
            (1) in section 2 (15 U.S.C. 5601)--
                    (A) by amending paragraph (5) to read as follows:
            ``(5) Commercialization of land remote sensing is a near-
        term goal, and should remain a long-term goal, of United States 
        policy.'';
                    (B) by striking paragraph (6) and redesignating 
                paragraphs (7) through (16) as paragraphs (6) through 
                (15), respectively; and
                    (C) in paragraph (11), as so redesignated by 
                subparagraph (B) of this paragraph, by striking 
                ``determining the design'' and all that follows through 
                ``international consortium'' and inserting in lieu 
                thereof ``ensuring the continuity of Landsat quality 
                data'';
            (2) in section 101 (15 U.S.C. 5611)--
                    (A) in subsection (c)--
                            (i) by inserting ``and'' at the end of 
                        paragraph (6);
                            (ii) by striking paragraph (7); and
                            (iii) by redesignating paragraph (8) as 
                        paragraph (7); and
                    (B) in subsection (e)(1)--
                            (i) by inserting ``and'' at the end of 
                        subparagraph (A);
                            (ii) by striking ``, and'' at the end of 
                        subparagraph (B) and inserting in lieu thereof 
                        a period; and
                            (iii) by striking subparagraph (C);
            (3) in section 201 (15 U.S.C. 5621)--
                    (A) by inserting ``(1)'' after ``National 
                Security.--'' in subsection (b);
                    (B) in subsection (b)(1), as so redesignated by 
                subparagraph (A) of this paragraph, by striking ``No 
                license shall be granted by the Secretary unless the 
                Secretary determines in writing that the applicant will 
                comply'' and inserting in lieu thereof ``The Secretary 
                shall grant a license if the Secretary determines that 
                the activities proposed in the application are 
                consistent'';
                    (C) by adding at the end of subsection (b) the 
                following new paragraph:
    ``(2) The Secretary, within 6 months after the date of the 
enactment of the Commercial Space Act of 1997, shall publish in the 
Federal Register a complete and specific list of all information 
required to comprise a complete application for a license under this 
title. An application shall be considered complete when the applicant 
has provided all information required by the list most recently 
published in the Federal Register before the date the application was 
first submitted. Unless the Secretary has, within 30 days after receipt 
of an application, notified the applicant of information necessary to 
complete an application, the Secretary may not deny the application on 
the basis of the absence of any such information.'';
                    (D) in subsection (c), by amending the second 
                sentence thereof to read as follows: ``If the Secretary 
                has not granted the license within such 120-day period, 
                the Secretary shall inform the applicant, within such 
                period, of any pending issues and actions required to 
                be carried out by the applicant or the Secretary in 
                order to result in the granting of a license.''; and
                    (E) in subsection (e)(2)(B), by striking ``and the 
                importance of promoting widespread access to remote 
                sensing data from United States and foreign systems'';
            (4) in section 202 (15 U.S.C. 5622)--
                    (A) by striking ``section 506'' in subsection 
                (b)(1) and inserting in lieu thereof ``section 507'';
                    (B) in subsection (b)(2), by striking ``as soon as 
                such data are available and on reasonable terms and 
                conditions'' and inserting in lieu thereof ``on 
                reasonable terms and conditions, including the 
                provision of such data in a timely manner'';
                    (C) in subsection (b)(6), by striking ``any 
                agreement'' and inserting in lieu thereof ``any 
                significant or substantial agreement relating to land 
                remote sensing''; and
                    (D) by inserting after paragraph (6) of subsection 
                (b) the following:
``The Secretary may not seek to enjoin a company from entering into a 
foreign agreement the Secretary receives notification of under 
paragraph (6) unless the Secretary has, within 30 days after receipt of 
such notification, transmitted to the licensee a statement that such 
agreement is inconsistent with the national security or international 
obligations of the United States, including an explanation of such 
inconsistency.'';
            (5) in section 203(a)(2) (15 U.S.C. 5623(a)(2)), by 
        striking ``under this title and'' and inserting in lieu thereof 
        ``under this title and/or'';
            (6) in section 204 (15 U.S.C. 5624), by striking ``may'' 
        and inserting in lieu thereof ``shall'';
            (7) in section 205(c) (15 U.S.C. 5625(c)), by striking ``if 
        such remote sensing space system is licensed by the Secretary 
        before commencing operation'' and inserting in lieu thereof 
        ``if such private remote sensing space system will be licensed 
        by the Secretary before commencing its commercial operation'';
            (8) by adding at the end of title II the following new 
        section:

``SEC. 206. NOTIFICATION.

    ``(a) Limitations on Licensee.--Not later than 30 days after a 
determination by the Secretary to require a licensee to limit 
collection or distribution of data from a system licensed under this 
title, the Secretary shall provide written notification to Congress of 
such determination, including the reasons therefor, the limitations 
imposed on the licensee, and the period during which such limitations 
apply.
    ``(b) Termination, Modification, or Suspension.--Not later than 30 
days after an action by the Secretary to seek an order of injunction or 
other judicial determination pursuant to section 202(b) or section 
203(a)(2), the Secretary shall provide written notification to Congress 
of such action and the reasons therefor.'';
            (9) in section 301 (15 U.S.C. 5631)--
                    (A) by inserting ``, that are not being 
                commercially developed'' after ``and its environment'' 
                in subsection (a)(2)(B); and
                    (B) by adding at the end the following new 
                subsection:
    ``(d) Duplication of Commercial Sector Activities.--The Federal 
Government shall not undertake activities under this section which 
duplicate activities available from the United States commercial 
sector, unless such activities would result in significant cost savings 
to the Federal Government, or are necessary for reasons of national 
security or international obligations.'';
            (10) in section 302 (15 U.S.C. 5632)--
                    (A) by striking ``(a) General Rule.--'';
                    (B) by striking ``, including unenhanced data 
                gathered under the technology demonstration program 
                carried out pursuant to section 303,'' and inserting in 
                lieu thereof ``that is not otherwise available from the 
                commercial sector''; and
                    (C) by striking subsection (b);
            (11) by repealing section 303 (15 U.S.C. 5633);
            (12) in section 401(b)(3) (15 U.S.C. 5641(b)(3)), by 
        striking ``, including any such enhancements developed under 
        the technology demonstration program under section 303,'';
            (13) in section 501(a) (15 U.S.C. 5651(a)), by striking 
        ``section 506'' and inserting in lieu thereof ``section 507'';
            (14) in section 502(c)(7) (15 U.S.C. 5652(c)(7)), by 
        striking ``section 506'' and inserting in lieu thereof 
        ``section 507''; and
            (15) in section 507 (15 U.S.C. 5657)--
                    (A) by amending subsection (a) to read as follows:
    ``(a) Responsibility of the Secretary of Defense.--The Secretary 
shall consult with the Secretary of Defense on all matters under title 
II affecting national security. The Secretary of Defense shall be 
responsible for determining those conditions, consistent with this Act, 
necessary to meet national security concerns of the United States, and 
for notifying the Secretary promptly of such conditions. Not later than 
180 days after the date of the enactment of the Commercial Space Act of 
1997, the Secretary of Defense shall publish in Commerce Business 
Daily, for the purpose of soliciting comments, notice of all national 
security concerns that pertain to the licensing of private remote 
sensing space systems. Not later than 60 days after receiving a request 
from the Secretary, the Secretary of Defense shall notify the Secretary 
and the licensee of, and describe in detail, any specific national 
security concerns of the United States that the Secretary of Defense 
determines are an appropriate reason for delaying, modifying, or 
rejecting a license application. The Secretary of Defense shall 
concurrently recommend to the Secretary any conditions for a license 
issued under title II, consistent with this Act, that the Secretary of 
Defense considers necessary to secure the national security concerns of 
the United States. If no such notification has been received by the 
Secretary within such 60-day period, the Secretary shall deem 
activities proposed in the license application to be consistent with 
the protection of the national security of the United States.'';
                    (B) by striking subsection (b)(1) and (2) and 
                inserting in lieu thereof the following:
    ``(b) Responsibility of the Secretary of State.--(1) The Secretary 
shall consult with the Secretary of State on all matters under title II 
affecting international obligations of the United States. The Secretary 
of State shall be responsible for determining those conditions, 
consistent with this Act, necessary to meet international obligations 
of the United States and for notifying the Secretary promptly of such 
conditions. Not later than 180 days after the date of the enactment of 
the Commercial Space Act of 1997, the Secretary of State shall publish 
in Commerce Business Daily, for the purpose of soliciting comments, 
notice of all international obligations of the United States that 
pertain to the licensing of private remote sensing space systems. Not 
later than 60 days after receiving a request from the Secretary, the 
Secretary of State shall notify the Secretary and the licensee of, and 
describe in detail, any specific international obligations of the 
United States that the Secretary of State determines are an appropriate 
reason for delaying, modifying, or rejecting a license application. The 
Secretary of State shall concurrently recommend to the Secretary any 
conditions for a license issued under title II, consistent with this 
Act, that the Secretary of State considers necessary to secure the 
international obligations of the United States. If no such notification 
has been received by the Secretary within such 60-day period, the 
Secretary shall deem activities proposed in the license application to 
be consistent with the international obligations of the United States.
    ``(2) Appropriate United States Government agencies are authorized 
and encouraged to provide to developing nations, as a component of 
international aid, resources for purchasing remote sensing data, 
training, and analysis from commercial providers.''; and
                    (C) in subsection (d), by striking ``Secretary may 
                require'' and inserting in lieu thereof ``Secretary 
                shall, where appropriate, require''.

SEC. 202. ACQUISITION OF EARTH SCIENCE DATA.

    (a) Acquisition.--For purposes of meeting Government goals for 
Mission to Planet Earth, the Administrator shall, to the maximum extent 
possible and while satisfying the scientific requirements of the 
National Aeronautics and Space Administration, acquire, where cost-
effective, space-based and airborne Earth remote sensing data, 
services, distribution, and applications from a commercial provider.
    (b) Treatment as Commercial Item Under Acquisition Laws.--
Acquisitions by the Administrator of the data, services, distribution, 
and applications referred to in subsection (a) shall be carried out in 
accordance with applicable acquisition laws and regulations (including 
chapters 137 and 140 of title 10, United States Code), except that such 
data, services, distribution, and applications shall be considered to 
be a commercial item for purposes of such laws and regulations 
(including section 2306a of title 10, United States Code (relating to 
cost or pricing data), section 2320 of such title (relating to rights 
in technical data) and section 2321 of such title (relating to 
validation of proprietary data restrictions)).
    (c) Study.--(1) The Administrator shall conduct a study to 
determine the extent to which the baseline scientific requirements of 
Mission to Planet Earth can be met by commercial providers, and how the 
National Aeronautics and Space Administration will meet such 
requirements which cannot be met by commercial providers.
    (2) The study conducted under this subsection shall--
            (A) make recommendations to promote the availability of 
        information from the National Aeronautics and Space 
        Administration to commercial providers to enable commercial 
        providers to better meet the baseline scientific requirements 
        of Mission to Planet Earth;
            (B) make recommendations to promote the dissemination to 
        commercial providers of information on advanced technology 
        research and development performed by or for the National 
        Aeronautics and Space Administration; and
            (C) identify policy, regulatory, and legislative barriers 
        to the implementation of the recommendations made under this 
        subsection.
    (3) The results of the study conducted under this subsection shall 
be transmitted to the Congress within 6 months after the date of the 
enactment of this Act.
    (d) Safety Standards.--Nothing in this section shall be construed 
to prohibit the Federal Government from requiring compliance with 
applicable safety standards.
    (e) Administration and Execution.--This section shall be carried 
out as part of the Commercial Remote Sensing Program at the Stennis 
Space Center.

    TITLE III--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

SEC. 301. REQUIREMENT TO PROCURE COMMERCIAL SPACE TRANSPORTATION 
                    SERVICES.

    (a) In General.--Except as otherwise provided in this section, the 
Federal Government shall acquire space transportation services from 
United States commercial providers whenever such services are required 
in the course of its activities. To the maximum extent practicable, the 
Federal Government shall plan missions to accommodate the space 
transportation services capabilities of United States commercial 
providers.
    (b) Exceptions.--The Federal Government shall not be required to 
acquire space transportation services under subsection (a) if, on a 
case-by-case basis, the Administrator or, in the case of a national 
security issue, the Secretary of the Air Force, determines that--
            (1) a payload requires the unique capabilities of the space 
        shuttle;
            (2) cost effective space transportation services that meet 
        specific mission requirements would not be reasonably available 
        from United States commercial providers when required;
            (3) the use of space transportation services from United 
        States commercial providers poses an unacceptable risk of loss 
        of a unique scientific opportunity;
            (4) the use of space transportation services from United 
        States commercial providers is inconsistent with national 
        security objectives;
            (5) it is more cost effective to transport a payload in 
        conjunction with a test or demonstration of a space 
        transportation vehicle owned by the Federal Government; or
            (6) a payload can make use of the available cargo space on 
        a Space Shuttle mission as a secondary payload, and such 
        payload is consistent with the requirements of research, 
        development, demonstration, scientific, commercial, and 
        educational programs authorized by the Administrator.
    (c) Delayed Effect.--Subsection (a) shall not apply to space 
transportation services and space transportation vehicles acquired or 
owned by the Federal Government before the date of the enactment of 
this Act, or with respect to which a contract for such acquisition or 
ownership has been entered into before such date.
    (d) Historical Purposes.--This section shall not be construed to 
prohibit the Federal Government from acquiring, owning, or maintaining 
space transportation vehicles solely for historical display purposes.

SEC. 302. ACQUISITION OF SPACE TRANSPORTATION SERVICES.

    (a) Treatment of Space Transportation Services as Commercial Item 
Under Acquisition Laws.--Acquisitions of space transportation services 
by the Federal Government shall be carried out in accordance with 
applicable acquisition laws and regulations (including chapters 137 and 
140 of title 10, United States Code), except that space transportation 
services shall be considered to be a commercial item for purposes of 
such laws and regulations (including section 2306a of title 10, United 
States Code (relating to cost or pricing data), section 2320 of such 
title (relating to rights in technical data) and section 2321 of such 
title (relating to validation of proprietary data restrictions)).
    (b) Safety Standards.--Nothing in this section shall be construed 
to prohibit the Federal Government from requiring compliance with 
applicable safety standards.

SEC. 303. LAUNCH SERVICES PURCHASE ACT OF 1990 AMENDMENTS.

    The Launch Services Purchase Act of 1990 (42 U.S.C. 2465b et seq.) 
is amended--
            (1) by striking section 202;
            (2) in section 203--
                    (A) by striking paragraphs (1) and (2); and
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (1) and (2), respectively;
            (3) by striking sections 204 and 205; and
            (4) in section 206--
                    (A) by striking ``(a) Commercial Payloads on the 
                Space Shuttle.--''; and
                    (B) by striking subsection (b).
                        II. Purpose of the Bill

    The purpose of the bill is to encourage the development of 
a commercial space industry in the United States by 
streamlining government regulatory procedures and unleashing 
the creativity and energies of American entrepreneurship.

              II. Background and Need for the Legislation

    The Department of Commerce estimated that revenue from 
commercial space activity in the United States totaled some 
$7.5 billion in 1995. For more than a decade, commercial space 
businesses have grown faster than the economy and proven 
relatively recession-proof. This success comes despite the fact 
that commercial space ventures are particularly capital-
intensive and often involve more risk than more traditional 
terrestrial businesses.
    Congress and the White House have supported and encouraged 
growth and development of this industry on a bipartisan basis, 
regardless of which political party controlled either branch of 
government. For example, a Democratic Congress and a Republican 
President worked together in 1992 to pass the Land Remote 
Sensing Policy Act of 1992 (P.L. 102-555), a law which enabled 
the private sector to design, build, launch, and operate 
commercial remote sensing satellites.
    During the course of its first term, the Clinton 
Administration has developed and published a range of policy 
statements that continue the work of his predecessors, 
Presidents Reagan and Bush, in establishing a stable business 
environment from which the commercial sector can create new 
space businesses and jobs. Those policies deal with space 
transportation, commercial remote sensing, and the Global 
Positioning System. Additionally, the President issued a new 
National Space Policy on September 19, 1996 which reinforced 
the government's support of commercial space development, 
noting that ``expanding U.S. commercial space activities will 
generate economic benefits for the Nation and provide the U.S. 
Government with an increasing range of space goods and 
services.'' The policy further declared that support of 
commercial space activity would be undertaken without federal 
subsidies. Taking the position that the government's role is 
more appropriately limited to creating a stable and predictable 
environment in which the entrepreneurial spirit of American 
enterprise can succeed, the policy states, ``Commercial space 
sector activities shall be supervised or regulated only to the 
extent required by law, national security, international 
obligations and public safety.''
    The Committee agrees with the President's position and 
supports his policy initiatives designed to advance U.S. 
commercial interests in space development. Since the passage of 
the 1992 legislation and the announcement of policies intended 
to create a stable business environment for developing space 
commercially, the government and the commercial sector have 
identified possible areas of improvement.
    H.R. 1702, the Commercial Space Act of 1997, is a modest 
step in improving the legal and regulatory framework for 
commercial space development. Yet, as Neil Armstrong noted upon 
departing the Lunar Excursion Module to leave the first extra-
terrestrial footprints in the history of humanity, giant leaps 
often begin with small, and modest, steps.
    H.R. 1702 will achieve several goals. One purpose of the 
bill is to codify the best aspects of existing space policy, so 
that the merits of the policies themselves are established in a 
more stable framework. Another purpose is to incorporate 
lessons learned from past efforts to create law and policy for 
the promotion of commercial space activity. Finally, many 
commercial space ventures relate directly to the production and 
dissemination of information. Thus, they form part of the 
technological base for the new information economy and require 
a more streamlined and proactive legal and regulatory 
environment if the United States is to lead the world into the 
information age.
    The bill is necessary because commercial activity in space 
is still at a very early stage of development. Its progress is 
measured in the work of relatively small, entrepreneurial 
companies. Like any young industry, commercial space business 
is vulnerable to the inconsistencies and sudden changes of 
government policy. H.R. 1702 is necessary to ensure consistency 
in government policy so that commercial space businesses can 
grow with the relatively reliable assurance that government 
policy will not change suddenly and drive them out of business 
through neglect, inattentiveness, incompetence, or 
shortsightedness.
    Currently, U.S. companies do not lead the world in several 
major areas of commercial space activity, even though they may 
have a competitive advantage in the quality of goods and 
services they offer. In many cases, the lack of a U.S. lead in 
commercial space is the result of U.S. government policies and 
the fact that many of our foreign competitors in commercial 
space activity are actually foreign governments. For example, 
when it comes to remote sensing systems selling their products 
commercially, the most advanced satellites in use today were 
either designed, built, launched, owned, or operated by the 
governments of France, India, and Canada. In the area of 
worldwide commercial space launch, U.S. companies only have 
about a 33% share of the market, in part because the U.S. 
government drove many U.S. companies out of the launch business 
with decisions made in the late 1970's and early 1980's to 
launch commercial payloads on the government-owned Space 
Shuttle. It took the Challenger disaster in 1986 to force a 
change in federal policy, but the U.S. launch industry still 
has not completely recovered from earlier government decisions.

                        IV. Summary of Hearings

    The Subcommittee on Space and Aeronautics held three formal 
hearings during the first session of the 105th Congress 
regarding H.R. 1702, the Commercial Space Act of 1997.
    On May 21, 1997, the Subcommittee on Space and Aeronautics 
held a hearing entitled, ``The Commercial Space Act of 1997: 
Commercial Remote Sensing, Part I.'' The witnesses were: Mr. 
Keith Calhoun-Senghor, Director of the Office of Air & Space 
Commercialization at the Department of Commerce; Mr. Jeff 
Harris, President of Space Imaging Incorporated; Dr. Susan 
Moran, Physical Scientist for the Southwest Watershed Research 
Center at the U.S. Department of Agriculture; Dr. John 
Townshend, Professor at the University of Maryland; and Dr. 
Molly Macauley, Senior Fellow at Resources for the Future.

Purpose of Hearing

    The purpose of this hearing was to seek input on the 
commercial remote sensing provisions of H.R. 1702, the 
Commercial Space Act of 1997. The hearing focused on: (1) 
ongoing and anticipated commercial space activities and their 
benefits to the United States; (2) applications of commercial 
remote sensing imagery that help to improve life on Earth; (3) 
policy issues that surround the creation and future growth of 
the emerging remote sensing industry; and (4) identifying 
improvements that can be made in the legal and regulatory 
environment to support the continued growth of the U.S. 
commercial remote sensing industry.

Key Issues

    Mr. Keith Calhoun-Senghor, Director of the Office of Air & 
Space Commercialization at the Department of Commerce, 
discussed a new era that he termed ``new space.'' He maintained 
that new space differs dramatically from the previous era of 
traditional aerospace in three significant ways: (1) it is 
privately funded; (2) it is international; and (3) it will be 
Earth's new economic frontier. Mr. Calhoun-Senghor also noted 
that the U.S. government is beginning, and must continue, to 
treat new space as an industry segment where data is tracked 
and analyzed in much the same way as commodities futures or 
crop reports are, so that businesses can intelligently 
anticipate the future of the aerospace industry.
    Mr. Jeff Harris, President of Space Imaging Incorporated, 
discussed opportunities that commercial remote sensing can 
offer the United States. He also explained the reasons for 
expanding interest in commercial remote sensing, including: (1) 
adequate technology is available; (2) commercial remote sensing 
has become more cost-effective; (3) international clientele 
opportunities; and (4) a U.S. aerospace industry that is poised 
and ready to further develop this emerging industry.
    Dr. Susan Moran, Physical Scientist for the Southwest 
Watershed Research Center at the U.S. Department of 
Agriculture, testified regarding applications of remote sensing 
imagery that help to improve life on Earth and discussed the 
value of commercial remote sensing to precision farming.
    Dr. John Townshend, Professor at the University of 
Maryland, said that to assist development of the commercial 
remote sensing industry, we (government and industry) should: 
(1) ensure that the scientific community plays a major role in 
planning the acquisition of remote sensing data; (2) provide 
reliable information on the availability of remote sensing data 
to the scientific user; (3) involve the scientific community in 
validation and quality assessment of products derived from 
remote sensing; and (4) assure that remote sensing products are 
delivered in a timely fashion.
    Dr. Molly Macauley, Senior Fellow at Resources for the 
Future, noted that the profitability of the commercial remote 
sensing market is going to depend on continued technological 
improvements and cost reductions in spacecraft and 
instrumentation. She also suggested that government agencies 
could ``auction'' research spacecraft after their original 
missions were complete. This would help commercial providers by 
eliminating expensive research and development costs.
    On May 22, 1997, the Subcommittee on Space and Aeronautics 
held a second hearing entitled, ``The Commercial Space Act of 
1997: Space Transportation.'' The witnesses were: Mr. Edward A. 
Frankle, General Counsel for NASA; Ms. Patti Grace Smith, 
Associate Administrator (Acting) for Commercial Space 
Transportation at the Federal Aviation Administration (FAA); 
Mr. Edward Brady, Managing Partner for Strategic Perspectives 
Incorporated; and Mr. Michael S. Kelly, President & CEO of 
Kelly Space & Technology Incorporated.

Purpose of Hearing

    The purpose of this hearing was to obtain input on various 
issues surrounding commercial space transportation for H.R. 
1702, the Commercial Space Act of 1997. The hearing focused on: 
(1) granting the Office of Commercial Space Transportation the 
authority to license reentries of commercial space 
transportation vehicles; (2) federal purchase of commercial 
space transportation services; (3) U.S. participation in the 
establishment of international standards for commercial space 
operations; and (4) licensing of in-space transportation.

Key Issues

    Mr. Edward A. Frankle, General Counsel for NASA, noted that 
policy makers need to review several areas before making a 
decision to regulate in-space transportation. These areas 
include: international obligations of the United States; public 
health and safety; safety of property; and national security 
and foreign policy interests of the United States. However, Mr. 
Frankle stated that he did not believe that there is any 
logical basis for regulating in-space transportation at this 
time.
    Ms. Patti Grace Smith, Associate Administrator (Acting) for 
Commercial Space Transportation at FAA, testified that it is 
essential that Congress pass authorizing legislation granting 
FAA the authority to license reentries. Further, she maintained 
that without such authority, the government would not be able 
to provide for public safety or ensure adequate oversight of 
commercial space transportation activities involving reentry or 
reusable vehicles.
    Mr. Edward Brady, Managing Partner for Strategic 
Perspectives Incorporated, focused on the necessity to 
establish international standards for commercial space 
operations. He maintained that commercial space activities 
cannot be implemented in a cost-effective manner without 
standards that are nationally and internationally recognized 
and used.
    Mr. Michael S. Kelly, President & CEO of Kelly Space & 
Technology Incorporated, said that he believed that authority 
to license reentry should be granted to the FAA and that the 
government should not continue the practice of financing, with 
taxpayer money, the development of commercial launch vehicles 
which then compete with privately-financed systems.
    On Wednesday, June 4, 1997, the Subcommittee on Space and 
Aeronautics held the third and final hearing on ``The 
Commercial Space Act of 1997: Commercial Remote Sensing, Part 
II.'' The witnesses were: Dr. D. James Baker, Under Secretary 
for Oceans and Atmosphere at the U.S. Department of Commerce; 
Ms. Cheryl Roby, Principal Deputy to the Assistant Secretary 
for Command, Control, Communications, and Intelligence at the 
Department of Defense; and Mr. Mike Swiek, Executive Director 
for the Global Positioning System Industry Council.
    While drafting H.R. 1702, the Commercial Space Act of 1997, 
the Committee on Science attempted to seek input from various 
agencies and businesses in an effort to make the bill as 
favorable, for both the Congress and the Administration, as 
possible. Therefore, the Department of State was invited to 
participate in this hearing, but unfortunately, a witness was 
not sent despite the Committee's attempts over several weeks to 
obtain a representative who could provide input from the 
Department. The Committee sought input from the Department of 
State because the Department makes recommendations, based on 
U.S. international obligations, to the Secretary of Commerce 
regarding licenses for commercial remote sensing. Subsequent to 
the hearing, the Space and Aeronautics Subcommittee Chairman 
and Ranking Member each received a position paper from the 
Department of State regarding H.R. 1702. While the Committee 
appreciates the input from the Department, such input is 
valuable legislatively only to the extent that members have the 
opportunity to ask questions and explore issues on the record. 
The Department's failure to appear before the Committee and 
offer its comments in a public forum limit the value or import 
that can be given to the Department's concerns, many of which 
appear to be inconsistent with existing law in the Land Remote 
Sensing Policy Act of 1992 (P.L. 102-555) and the President's 
publicly released statements of policy on remote sensing.

Purpose of Hearing

    The purpose of this hearing was to seek input on the 
commercial remote sensing provisions of H.R. 1702, the 
Commercial Space Act of 1997. The hearing explored: (1) the 
current legal and regulatory regime for remote sensing in the 
Land Remote Sensing Policy Act of 1992 (P.L. 102-555) and White 
House policy; (2) lead agency responsibilities (including 
national security concerns and international obligations) for 
implementing the Land Remote Sensing Policy Act of 1992; (3) 
improvements that can be made to the Land Remote Sensing Policy 
Act of 1992; (4) interagency cooperation and coordination on 
prospective license applications; (5) Department of Defense use 
of imagery from existing or planned commercial remote sensing 
satellites; and (6) development and growth potential of the 
Global Positioning System (GPS) applications industry.

Key Issues

    Dr. D. James Baker, Under Secretary for Oceans and 
Atmosphere at the U.S. Department of Commerce, testified that 
it is the goal of the Department of Commerce, and the 
Administration, to provide a policy and regulatory regime which 
nurtures and fosters the development of commercial remote 
sensing, so that the United States does not squander its lead 
and allow other countries to gain competitive advantage in this 
high-skill, high-wage industry. Dr. Baker noted industry 
concerns about the vagueness of the standard for determining 
when imaging must be restricted. Therefore, he reported that 
the Department of Commerce is developing regulations which will 
achieve a better balance between the burdens on a licensed 
operator and national security requirements and international 
obligations of the United States regarding remote sensing 
practices.
    Ms. Cheryl Roby, Principal Deputy to the Assistant 
Secretary for Command, Control, Communications, and 
Intelligence at the Department of Defense, testified that the 
recently completed Quadrennial Defense Review commits the 
Department to maximize the use of emerging commercial remote 
sensing capabilities. She maintained that for reasons of 
national security, the Defense Department is convinced that 
provisions allowing for shutter control in emergency situations 
should continue. However, Ms. Roby noted that the Defense 
Department did not anticipate that shutter control would occur 
often or over significant periods of time.
    Mr. Mike Swiek, Executive Director for the Global 
Positioning System Industry Council, testified that the Global 
Positioning System (GPS) has become one of the greatest success 
stories of government and industry cooperation. He noted that 
proposed language in the Commercial Space Act of 1997 
reiterates the need to establish a clear, high-level commitment 
to a stable policy environment for the development of 
international standards facilitating both private and public 
sector investments in GPS. In closing, Mr. Swiek argued that 
the most important near-term initiative that the government can 
take to promote long-term GPS growth is through passage of 
language that supports current efforts to secure international 
agreements with our allies to establish GPS and its 
augmentations as an accepted international standard.

               V. Summary of Major Provisions of the Bill

    The major provisions of the bill are the following:
    Requires the NASA Administrator to submit a report and 
independent market study to Congress identifying commercial 
opportunities and evaluating industry interest in playing a 
role in International Space Station activities including 
operation, use, servicing, or augmentation;
    Amends the Commercial Space Launch Act (49 U.S.C. 70101 et 
seq.) to establish a statutory framework for the Office of 
Commercial Space Transportation to license commercial reentry 
activities;
    Reaffirms United States policy to make the U.S. Global 
Positioning System the world standard and to continue its 
operation on a continuous worldwide basis, free of direct user 
fees;
    Encourages NASA to purchase space science data from 
commercial providers instead of building complete systems to 
generate the data;
    Directs the NASA Administrator to manage the Commercial 
Space Centers as a coordinated program out of NASA 
headquarters;
    Updates the Land Remote Sensing Policy Act of 1992 (P.L. 
102-555;
    Encourages NASA to buy Earth remote sensing data from 
commercial providers and requires a study of how scientific 
requirements of Mission to Planet Earth can be met by 
commercial providers;
    Requires the Federal Government to procure space 
transportation services from U.S. commercial providers.

          VI. Section-By-Section Analysis and Committee Views

Section 1 Short Title

    This Act may be cited as the ``Commercial Space Act of 
1997.''

Section 2 Definitions

    Provides definitions for terms used in H.R. 1702. 
Definitions are provided for NASA Administrator; commercial 
provider; payload; space-related activities; space 
transportation services; space transportation vehicle; state; 
and U.S. commercial provider.

Title I--Promotion of Commercial Space Opportunities

Section 101 Commercialization of Space Station

Sectional Analysis

    Requires a report from NASA, within 90 days after 
enactment, that identifies and examines the opportunities for 
commercial providers to play a role in International Space 
Station activities; the potential cost savings from using 
commercial providers; details the opportunities the NASA 
Administrator plans to make available to commercial providers; 
the policies that the NASA Administrator is advancing to 
encourage commercial opportunities; and the revenues and cost 
reimbursements to the Federal Government from commercial users 
of the International Space Station. Requires an independent 
market study, 180 days after enactment, that examines and 
evaluates potential industry interest in providing commercial 
goods and services for the operation, servicing, and 
augmentation of the International Space Station. Requires a 
report detailing how many proposals NASA received in 1997 
regarding commercial operation, servicing, utilization, or 
augmentation of the International Space Station, and how many 
of these resulted in agreements. The section also directs that 
the role of state governments as brokers in promoting space 
station commercialization be considered in all three reports.

Committee Views

    The Committee has consistently stated its interest, both in 
legislation adopted by the House of Representatives and in 
authorization and oversight hearings, in the greatest possible 
U.S. commercial participation in the operation, servicing, 
utilization, and augmentation of the International Space 
Station. This is motivated both by a desire to lower costs to 
U.S. taxpayers by bringing the efficiencies and the capital 
resources of competitive free enterprise to bear on the 
International Space Station, and by the Committee's belief that 
Earth orbital space is an economic frontier of tremendous 
potential and that the International Space Station should be 
operated in a matter which helps open up this frontier to 
American enterprise.
    To this end, H.R. 1702 directs the Administrator of NASA to 
produce three reports for the Committee. The first is a short-
term internal study of opportunities for commercialization of 
the U.S. portion of the International Space Station. The second 
is a 180-day external study of market interest in International 
Space Station commercialization. The third is a report for 1997 
on how much interest private companies have shown by making 
proposals to NASA, and how many agreements NASA has entered 
into in response to those proposals.

Section 102 Commercial Space Launch Amendments

Sectional Analysis

    This section amends Chapter 701 of title 49, United States 
Code, entitled ``Commercial Space Launch Activities,'' which is 
a recodification of the Commercial Space Launch Act of 1984 
(P.L. 98-575). The purpose of the amendments is to establish a 
statutory framework for the licensing of commercial reentry 
activities by the Secretary of Transportation, clarify certain 
provisions in Chapter 701, and provide for criteria for 
accepting a license application.
    The Commercial Space Launch Act is further amended to 
expand the definition of ``launch services'' to those 
activities directly related to the preparation of a launch site 
or payload facility. Under Section 70105, the Secretary of 
Transportation is directed to notify the authorizing House and 
Senate Committees within 30 days after a license has not been 
issued within the deadline. The Secretary may establish 
procedures for safety approvals of launch vehicles, reentry 
vehicles, safety systems, processes, services, or personnel 
that may be used in conducting licensed commercial space launch 
or reentry activities. The Secretary is also given the 
authority to develop regulations establishing criteria for 
accepting an application for a license within the 60 days after 
receipt of such application.

Program Description

    The Department of Transportation, through its Office of 
Commercial Space Transportation, is responsible for 
implementing Chapter 701 which authorizes the Secretary of 
Transportation to license and regulate the non-governmental 
space launch of a vehicle and operation of a launch site. In 
addition, by virtue of Executive Order 12465, the Department 
has lead agency responsibilities within the Executive Branch to 
encourage, facilitate, and coordinate development of commercial 
expendable launch vehicle operations by private U.S. 
enterprises.

Committee Views

    When the Commercial Space Launch Act was passed in 1984 
(P.L. 98-575) and when it was amended in 1988 (P.L. 100-657), 
Congress did not address the full range of space transportation 
activities that the private sector could undertake on a 
commercial basis. Specifically, commercial space activities 
involving reentry vehicles that are returned to Earth from 
Earth orbit or outer space were not encompassed, and were not 
intended to be encompassed, by the statute. Market demand to 
support commercial reentry ventures is emerging. The commercial 
sector is beginning to demonstrate technical capability to 
undertake such activities if suitable profit-making 
opportunities are presented. In recognition of these 
developments, the Committee wishes to establish the appropriate 
legal framework to ensure public safety is protected while 
minimizing regulatory burden, delay or uncertainty that could 
inhibit commercial exploitation of reentry capabilities. In 
addition to establishing a regulatory regime for commercial 
reentries, the Committee intends these amendments to address 
certain issues that have arisen regarding the definition of 
``launch;'' the extent to which activities before and after 
launch may be licensed or regulated; and applicability of the 
third party liability provisions of sections 70112 and 70113 of 
Chapter 701.
    The term ``reentry'' is intended to cover a wide range of 
activities, including the act of returning a reusable launch 
vehicle to Earth. In establishing the legal framework for 
reentry, the Committee's approach is to treat reentry of a 
reentry vehicle the same as launch of a launch vehicle. 
Reentries described in section 70104(a) must be licensed, just 
as launches meeting these same criteria must be licensed. In 
addition, amendments to other sections of Chapter 701 grant to 
the Secretary the same authority and responsibility with 
respect to the licensing and regulation of the reentry of 
reentry vehicles as existing law provides to the Secretary with 
respect to the launch of vehicles.
    An amendment to section 70102 also adds the phrase ``from 
Earth'' to the existing definition of ``launch'' in order to 
make clear the original intent of the Commercial Space Launch 
Act that the launch of a launch vehicle is an event that takes 
place from Earth, not from Earth orbit or otherwise from or in 
outer space. Although the definition of launch in the original 
Act lacks this explicit specification, the Act was otherwise 
quite clear that a launch for purposes of the license 
requirement takes place from a ``launch site,'' which is 
defined in terms of a location ``on Earth.'' Moreover, the 
legislative history of the Commercial Space Launch Act 
demonstrates that only launches from Earth were envisioned.
    The amendment to section 70102 was originally prompted by a 
concern that the Department of Transportation was advocating 
the position that a reentry is subject to a launch license 
requirement on the grounds that reentry entailed the placing of 
a launch vehicle in a suborbital trajectory ``from Earth 
orbit.'' Although the Department has since abandoned that 
position, the Committee wishes by this amendment to register 
its emphatic rejection of any interpretation of ``launch'' that 
would include space transportation activities that do not begin 
from Earth, such as reentry; the transfer of a satellite 
between one Earth orbit and another; or any other on-orbit 
operation after a launch is completed and before reentry is 
initiated.
    The Committee intends that for purposes of the license 
requirement, reentry begins when the vehicle is prepared 
specifically for reentry. By way of definition, the Committee 
intends the term to apply to that phase of the overall space 
mission during which the reentry is intentionally initiated. 
Although this may vary slightly from system to system, as a 
general matter the Committee expects reentry to begin when the 
vehicle's attitude is oriented for propulsion firing to place 
the vehicle on its reentry trajectory.
    The Committee acknowledges that in order to issue a 
license, the Department must be satisfied that an applicant has 
demonstrated capability to carry out a reentry safely and 
without jeopardy to critical national interests. The Committee 
also appreciates that, to evaluate capability, the Department 
may need to examine certain of the applicant's proposed 
procedures and activities that would precede initiation of 
reentry. However, the Committee wishes to make clear that these 
pre-reentry procedures or activities are not events requiring a 
license, nor otherwise subject to regulation. Rather, they 
would represent aspects of an application that the Department 
would have to measure against standards and criteria that the 
Department has established are necessary to evaluate capability 
to conduct the reentry. These standards and criteria may be 
generally applicable to all applicants or specific to a 
particular proposal. The Committee urges the Department to take 
the steps necessary to ensure that they are clearly articulated 
and understandable to license applicants.
    There has been much discussion about what activities should 
be encompassed by the term ``launch'' for the purposes of the 
license requirement. It is the Committee's view that there are 
activities that precede flight that: (1) begin at a launch site 
in the United States, which may or may not be the actual launch 
site for a particular launch in question; (2) entail critical 
steps preparatory to initiating flight; (3) are unique to space 
launch; and (4) are inherently so hazardous to launch site 
personnel or property so as to warrant the Department's 
regulatory oversight under Chapter 701.
    An array of hazardous pre-flight activities take place at 
launch sites in the United States in preparation for the flight 
of a launch vehicle. With the advent of new technologies and 
launch systems, the Committee finds that these activities may 
take place thousands of miles away from the launch site from 
which launch takes place, and several weeks or months in 
advance of an actual launch date. Nevertheless, they retain 
their hazardous nature as well as their direct relationship to 
the launch they support. Accordingly, as demonstrated by the 
Committee's passage of this bill, the Committee believes that 
the statute's definition of launch should be amended so that if 
an activity takes place at a launch site in the United States 
it will be subject to the oversight of the Office of Commercial 
Space Transportation and financial risk allocation scheme of 
the statute.
     ``Launch site in the United States'' means a U.S. site 
from which a launch vehicle actually leaves from the surface of 
the Earth at any time. This bill does not extend federal launch 
licensing or launch oversight authority to a site in the United 
States at which limited activities such as launch vehicle and 
payload integration and processing occur and form which actual 
launch vehicle lift-offs never occur. Such areas are considered 
adequately regulated under local, state, and federal law.
    The original Act intended that a launch ends, as far as the 
launch vehicle's payload is concerned, once the launch vehicle 
places the payload in Earth orbit or in the planned trajectory 
in outer space. The Committee wishes to make clear that the 
Secretary has no authority to license or regulate activities 
that take place between the end of the launch phase and the 
beginning of the reentry phase, such as maneuvers between two 
Earth orbits or other non-reentry operations in Earth orbit; or 
after the end of a launch phase in the case of missions where 
the payload is not a reentry vehicle.
    Sections 70112 and 70113, establishing an allocation of 
risk regime, are also amended to cover reentry in the same way 
that launches are covered. The Committee notes that these 
provisions apply to losses sustained as a result of licensed 
activities, (i.e., launches and reentries) not events or 
activities between launch and reentry; after reentry; or 
uncovered before launch. Once a launch or a reentry is 
completed no protection against third party liability is 
intended to be provided under Chapter 701 unless there is a 
clear causal nexus between the loss and the behavior of the 
launch or reentry vehicle. For instance, if, subsequent to a 
launch vehicle's successful deployment of a payload that is not 
a reentry vehicle, the payload returns to Earth and causes 
third party loss, the loss is not intended to be covered by 
sections 70112 and 70113. As another example, if during an 
airborne launch, the aircraft suffers an accident after the 
vehicle has separated from the aircraft and taken off, and the 
accident is not attributable to the launch vehicle, then this 
event is also not intended to be covered by sections 70112 and 
70113.
    Current law governing commercial space launch activities 
(49 USC 70101 et seq.) includes a provision designating that a 
launch vehicle or payload is not to be considered an export 
simply due to the launch itself. H.R. 1702 amends this 
provision to include reentries which should not be considered 
an import simply because of the reentry. Prior to enactment of 
the original Commercial Space Launch Act in 1984, the launch of 
a launch vehicle was considered an export. The intent of the 
original provision, launch not an export, was to obviate the 
need for an export license for a commercial launch since such a 
launch is not considered an export, in the traditional sense. 
There was never any intent that, launch not an export, would 
affect foreign trade zone procedures.
    The Committee awaits greater clarification of the 
licensee's launch/reentry insurance and allocation of risk 
requirements through the Department's ongoing rulemaking action 
(14 CFR 440). Two new sections were added to Chapter 701, 
Sections 70120 and 70121. Section 70120 requires the Secretary 
of Transportation within 9 months after the date of enactment, 
to issue regulations to give industry guidelines and procedures 
related to insurance, launch licenses and government 
indemnification. Section 72120 also requires the Secretary of 
Transportation, within 6 months after the date of enactment, to 
issue a notice of proposed rulemaking related to reentry 
licenses. Section 70121 requires the Secretary of 
Transportation to submit an annual report on the activities 
undertaken under Chapter 701 and the performance of the Office 
of Commercial Space Transportation.

Additional amendments authorizing criteria for license application 
        acceptance

    Section 102 also amends Chapter 701 to authorize the 
Secretary to issue regulations establishing criteria for 
acceptance of a license application. The acceptance or 
rejection must be made within 60 days of receipt of the 
application. The purpose of this amendment is to: (1) limit the 
undue expenditure of Office resources on determining whether an 
application is viable; and (2) to provide the applicant with 
timely notice of whether the application will be accepted.

Section 103 Launch Voucher Demonstration Program

Sectional Analysis

    Section 504 of the Fiscal Year 1993 National Aeronautics 
and Space Administration Act (P.L. 102-588) is amended by 
striking outdated references to dates and offices.

Committee Views

    This section strikes the sunset date of the Launch Voucher 
Demonstration Program so that NASA can continue the program if 
it wishes to, but does not require continuation of the program.

Section 104 Promotion of United States Global Positioning System 
        Standards

Sectional Analysis

    Encourages the President to ensure the operation of the 
U.S. Global Positioning System (GPS) on a continuous worldwide 
basis, free of direct user fees and to enter into agreements 
that promote cooperation with foreign governments in order to 
establish GPS and its augmentations as the accepted 
international standard.

Committee Views

    The Committee congratulates the Administration for its 
policies regarding use of the Global Positioning System. In 
general, Members of Congress agree that it is in the U.S. 
interest to encourage continued commercial use of this system, 
and that it is in the interest of U.S. national security for 
the U.S. GPS system to become the world's standard. 
Consequently, the Congress expresses its support for this 
policy in this section and encourages the Administration to 
proceed with international negotiations designed to advance 
U.S. national interests and support foreign use of the GPS 
system. Finally, the Committee reasserts its support for 
ensuring the continuous operation of the GPS signal globally 
without direct user fees.
    In March 1996, the President released a policy statement on 
the U.S. Global Positioning System (GPS). That policy 
recognizes the national security benefits of making the U.S. 
system the world's standard, as laid out in reports from the 
National Academy of Public Administration, the National 
Research Council, and the RAND Corporation. A unique 
opportunity exists to shape the direction of this global 
industry so that it grows in a manner consistent with and 
supportive of U.S. national security and economic interests. 
Establishing GPS as the world's standard requires the United 
States to adopt a mature, even-handed, and reliable role as a 
provider of positioning data from the Global Positioning 
System.
    The Committee understands that the Fiscal Year 1998 defense 
authorization bill currently completing conference negotiations 
addresses the policy framework for protecting national security 
while making GPS the world standard. H.R. 1702 enhances this 
message by encouraging the President to enter into agreements 
with foreign entities to make GPS the world standard and to 
continue the policy of making the GPS signal available globally 
without direct user fees. The language offered in H.R. 1702 is 
non-binding, and simply expresses Congressional support for the 
President's policy. This language helps assure negotiating 
partners that the elected officials of the United States 
government are speaking with one voice on this issue and is 
intended to strengthen the President's negotiating position and 
ability to ensure his policies are carried out. The President's 
policy is innovative and gives the United States the unique 
opportunity to shape the direction of space-based navigation 
around the world. The bill supports the President's leadership. 
It should also be clear to the State Department that Congress 
views its efforts to help negotiate regional agreements to make 
the U.S. Global Positioning System the world's standard as 
extremely important to U.S. national security and the 
continuing success of the U.S. commercial space industry.

Section 105 Acquisition of Space Science Data

Sectional Analysis

    This section states that NASA shall, to the maximum extent 
possible, acquire space science data from commercial providers, 
where cost-effective, and while satisfying scientific 
requirements. Acquisitions of space science data are to be 
carried out in accordance with applicable acquisition laws and 
regulations. Further, space science data is to be treated as a 
commercial item under applicable acquisition laws.

Committee Views

    The purpose of this section is to encourage the 
Administrator of NASA to acquire space science data 
commercially. For those data sets with both scientific merit 
and commercial appeal, NASA can spur commercial enterprises 
while acquiring the data faster and cheaper.

Section 106 Administration of Commercial Space Centers

Sectional Analysis

    This section directs the Administrator of NASA to manage 
the Commercial Space Centers as a coordinated program out of 
NASA Headquarters.

Committee Views

    In recent years, due to a series of reorganizations, NASA's 
efforts to promote U.S. commercial space activities have grown 
increasingly diffuse. In particular, the management of--and 
funding decisions regarding--the Commercial Space Centers 
(CSCs, formerly known as the Centers for the Commercial 
Development of Space) have been transferred to NASA's field 
centers. In some cases, either sufficient funding has not been 
transferred to maintain CSC activities at planned levels, or 
internal field center budget pressures have caused the 
reduction or elimination of several CSCs' funding, including an 
unscheduled closure of one CSC.
    The Committee does believe that NASA can and should close 
CSCs which are not performing well according to peer review 
standards, but that process should be shielded from any one 
field center's budgetary pressures. The best way to do that is 
to maintain a unified CSC program based at NASA Headquarters.
    The Committee also believes that all parts of NASA, most 
especially its field centers, should be actively engaged in 
implementing the NASA Act's (National Aeronautics and Space Act 
of 1958, as amended 42 U.S.C. 2451) mandate to ``promote the 
fullest possible commercial use of space,'' and therefore can 
and should build strong technical and even managerial 
relationships with CSCs. But it remains NASA headquarters' (and 
therefore the Administrator's) responsibility to judge the 
performance of, and make budgetary decisions about, CSCs across 
disciplines and industry areas according to a coordinated set 
of standards and metrics.

Title II--Remote Sensing

Section 201 Land Remote Sensing Policy Act of 1992 Amendments

Sectional Analysis

    Updates the Land Remote Sensing Policy Act of 1992 (15 
U.S.C. 5601 et seq.). Requires the Secretary of Commerce to 
publish a list of requirements for applicants seeking a license 
to own and operate a remote sensing satellite. Creates a 
presumption of approval for license applications that comply 
with title requirements. Prevents the Secretary of Commerce 
from seeking to enjoin a licensee from entering into a foreign 
agreement unless the Secretary first transmits a determination 
to the licensee that such participation is inconsistent with 
national security or international obligations. Requires the 
Secretary of Commerce to notify Congress of any action to limit 
collection or distribution of data. Requires the Secretary of 
Commerce to report to Congress any injunctions that it seeks 
against a commercial provider. Prohibits the Federal Government 
from duplicating commercial provider activities unless such 
activities would result in significant savings or are necessary 
for reasons of national security or international obligations. 
Requires the Secretary of Commerce to consult with the 
Secretaries of Defense and State regarding license applications 
and the Secretaries of Defense and State to determine whether 
such applications are consistent with U.S. national security 
interests and international obligations. Treats the absence of 
objection from either the Secretary of Defense or State to a 
license application as confirmation that the application is 
consistent with U.S national security and international 
obligations within a specific time period. Encourages the U.S. 
government to consider providing vouchers for use of U.S. 
commercial remote sensing services and products to developing 
nations as a component of U.S. international aid programs.

Committee Views

    Congress worked on a bipartisan basis to pass the Land 
Remote Sensing Policy Act of 1992 (P.L. 102-555), which 
President Bush signed. That law enabled the commercial sector 
to design, build, own and operate satellites that image the 
Earth from space. Such systems have multiple uses, including 
land-use planning, construction site management, precision 
agriculture, pollution detection and environmental cleanup. The 
Department of Commerce estimates that this market could reach 
$2.4 billion by the year 2000. Several foreign governments are 
entering this commercial market and directing their government 
space agencies or government-owned firms to sell remote sensing 
data on the commercial market.
    Given this development and 5 years of experience with the 
1992 Act, there is a need to update the law and preserve the 
competitive advantage that U.S. companies have in this 
industry. To its credit, the Department of Commerce has 
improved the licensing process considerably since its first 
experiences. Both the National Oceanic and Atmospheric 
Administration and Office of Air and Space Commercialization 
have worked assiduously to draft new regulations and remove 
obstacles to the industry's accelerated growth. Nevertheless, 
the need to update existing law remains.
    The bill establishes a presumption that a license 
application which satisfies the requirements of law shall be 
granted. While this would seem self-evident, it is the 
Committee's intention to signal its strong support of this area 
of economic growth. Furthermore, the presumption to grant a 
license should make it clear that the burden of proof for 
denying a license rests with the Federal Government. In other 
words, it is not the license applicant's burden to prove that 
it should be allowed to engage in legal commercial activity. 
Instead, it is the government's responsibility to clearly 
demonstrate that an applicant should not receive a license if 
such a license is to be denied. The Secretary of Commerce 
continues to retain authority and responsibility to exercise 
judgment about the appropriateness of granting an applicant's 
license, while the Secretaries of Defense and State 
respectively retain their authority to determine that a granted 
license is consistent with U.S. national security concerns and 
international obligations.
    There is a specific timeline in which the Secretary of 
Commerce, under current law, has to consider an application for 
a license to operate a commercial remote sensing satellite. 
Unfortunately, in the case of some licenses that have been 
issued under the law, the Commerce Department has exceeded the 
timeframe in which it is supposed to rule on a license 
application. Part of the problem has occurred at the beginning 
of the process, while the Commerce Department and the license 
applicant negotiate the information that must be included in an 
application in order to consider it complete. The bill requires 
the Secretary of Commerce to determine what information is 
necessary for an application to be considered complete and to 
make its determination public, so that there is a common frame 
of reference for all applicants. In this manner, both the 
commercial sector and the government will share a common 
understanding of the parameters for considering license 
applications. It is the Committee's presumption that the 120-
day timeframe in which the United States has to act on a 
license application under existing law will not begin until the 
license application is considered complete, as determined by 
the Department of Commerce.
    Another reason the timeframe for granting or denying an 
application has been exceeded is the lengthy interagency 
process for reviewing license applications. Both the Secretary 
of Defense and the Secretary of State review license 
applications to ensure that they are consistent with U.S. 
national security concerns and international obligations. Both 
Departments have taken too long to make such a determination. 
The bill requires that they inform the Secretary of Commerce of 
any concerns within 60 days of the request from the Secretary 
of Commerce. The Committee presumes that the Secretary of 
Commerce would not make such a request until a license is 
considered complete and the license application contains the 
information needed for the Departments of Defense and State to 
meet their obligation to respond to the Secretary of Commerce 
within 60 days. If no objections are raised by the Secretaries 
of Defense and State within this 60-day period, the Secretary 
of Commerce is to treat the application as consistent with U.S. 
national security and international obligations.
    The Committee expects that concerns raised by the 
Secretaries of Defense or State about a license application or 
the continued operation of a satellite under an existing 
license, during times when national security or international 
obligations are involved, will be of a sufficient nature to 
pass a high standard, such as those that govern prior restraint 
of the media. The Committee believes that long-term national 
security interests are best served if U.S. companies dominate 
the commercial remote sensing industry, which they cannot do if 
foreign governments create a more stable legal and regulatory 
environment governing remote sensing than the U.S. government.
    Today's high technology enterprises and venture capital 
markets are globalized, meaning American companies cannot 
remain at the cutting edge of technology if they do not have 
networks of contacts with overseas entities and access to 
foreign-developed expertise. The U.S. government is still 
working through all of the issues involved in how it regulates 
technology-centered businesses in this new age of globalized 
technology. One mechanism is to require U.S. companies to 
notify the Federal Government of their arrangements with 
foreign entities. The Land Remote Sensing Policy Act of 1992 
(P.L. 102-555), the White House Policy on Remote Sensing 
(1994), and H.R. 1702, the Commercial Space Act of 1997 all 
contain such notification requirements. The intention of the 
provision in the Land Remote Sensing Policy Act of 1992 was to 
protect U.S. national security interests by ensuring that a 
licensee was not controlled by a foreign entity and to provide 
information on which customers are obtaining which images. 
However, in practice, licensed U.S. commercial remote sensing 
satellite firms have been required to report financing and 
investment transactions that do not directly affect corporate 
control or imaging activities. Additionally, such notification 
has triggered an interagency review of the original license 
application and the allowable imaging activities. The Committee 
believes that this practice exceeds the authority given to the 
Executive Branch in the original Act and that it should not be 
continued. The President's policy on remote sensing is entirely 
correct on this matter. It reads, ``Pursuant to this Act, the 
U.S. Government requires U.S. companies that have been issued 
operating licenses under the Act to notify the U.S. Government 
of its intent to enter into significant or substantial 
agreements with new foreign customers.'' Reviews of agreements 
between U.S.-licensed companies and foreign entities that 
explore more than the distribution of data exceed the authority 
contained in the President's policy. The bill's language 
regarding ``significant or substantial agreement relating to 
land remote sensing'' is not to be viewed as inconsistent with 
the existing practice of requiring licensees to notify the 
Secretary of Commerce of any significant or substantial 
agreements that affect control of the licensee by U.S. persons.
    H.R. 1702 requires licensees to notify the government only 
of ``any significant or substantial agreement relating to land 
remote sensing.'' The bill preserves the ability of the U.S. 
government to review images taken by a U.S. company and to 
verify that U.S. licensed companies and their satellites remain 
under the control of U.S. persons. It does not require 
licensees to report every transaction with a foreign entity to 
the U.S. government. Therefore, it strikes an appropriate 
balance between the need to provide a stable business 
environment with the need to provide effective protection of 
U.S. national security concerns and international obligations.
    To remain in business, high technology enterprises must 
make business decisions more quickly than the government does. 
The slow pace of government decision-making thus threatens to 
hinder the competitive advantage that U.S. firms seek over 
their foreign competition. Therefore, the bill requires the 
Secretary of Commerce to respond to a notification of a foreign 
agreement within 30 days. The bill prohibits the Secretary of 
Commerce from seeking to enjoin a U.S. company from entering 
into such agreements without notifying the licensee within 30 
days that the agreement is inconsistent with U.S. national 
security or international obligations. The Secretary of 
Commerce is further required to explain such inconsistencies in 
detail, since the Federal Government has a responsibility to 
tell U.S. citizens engaging in legal commercial activity why it 
intends to prohibit them from engaging in legal commercial 
activity. Only by telling licensees why agreements are deemed 
inconsistent with U.S. national security and international 
obligations can the government expect them to make future 
efforts to avoid entering into similar agreements. In this 
manner, companies will not be forced to waste resources waiting 
too long for a government decision. This provision should not 
be interpreted as undermining the Secretary's authority under 
Section 203 of the Land Remote Sensing Policy Act of 1992 to go 
to court to alter a granted license or terminate the operation 
of a licensed satellite if the Secretary deems doing so is 
necessary to ensure the licensee lives up to its obligation to 
operate a remote sensing spacecraft in a manner consistent with 
U.S. national security concerns or international obligations. 
It is the Committee's interpretation that the Secretary's 
authority under Section 203 of the Land Remote Sensing Policy 
Act of 1992 exists at all times, regardless of what type of 
information about foreign agreements the Secretary has and the 
timeframe in which the Secretary received it.
    The bill adds a new paragraph to Section 301 of the Land 
Remote Sensing Policy Act of 1992. The new paragraph prohibits 
the Federal Government from duplicating or otherwise competing 
with the commercial sector in offering commercial remote 
sensing goods and services, including value-added activity 
undertaken by the Geographic Information Systems industry in 
the United States. Exceptions are permitted when government 
duplication of a commercial activity results in significant 
cost savings or is necessary for reasons of national security 
or international obligations. Given the extraordinary lengths 
to which the government goes to spin technology off into the 
commercial sector and thereby create new goods, services, and 
jobs, it makes no sense for the government to offer commercial 
goods and services that compete with the commercial sector. 
This measure does not prohibit public-private partnerships to 
create new technology. Rather, it prevents the government from 
wasting tax dollars to duplicate goods and services already 
available from the commercial sector.
    Finally, current law encourages the U.S. government to 
provide appropriate imagery to countries receiving foreign aid 
as a component of the foreign aid program. Commercial remote 
sensing imagery can be very conducive to foreign aid and such 
imagery can help the developing world more efficiently manage 
its resources and economic growth. Nevertheless, the Committee 
does not believe that the U.S. government should be in the 
commercial remote sensing business. Therefore, the bill alters 
this section of the 1992 Act and encourages U.S. departments 
and agencies that manage foreign aid programs to provide 
vouchers for developing nations to obtain remote sensing 
imagery and interpretative training from commercial providers.

Section 202 Acquisition of Earth Science Data

Sectional Analysis

    This section states that NASA shall, to the maximum extent 
possible, acquire Earth remote sensing data from commercial 
providers, where cost-effective, and while satisfying 
scientific requirements. Acquisitions are to be carried out in 
accordance with applicable acquisition laws and regulations. 
Further, Earth remote sensing data is to be treated as a 
commercial item under applicable acquisition laws. The section 
also requires a study on how scientific requirements of Mission 
to Planet Earth can be met by commercial providers.

Committee Views

    This provision of the bill directs NASA to purchase 
commercial Earth science data to meet the requirements of 
Mission to Planet Earth when such data is cost-effective and 
satisfies scientific requirements. Furthermore, the bill 
directs NASA to treat such data as a commercial item under 
applicable acquisition laws.
    The section also directs NASA to conduct a study to 
determine how commercial provider capabilities can be best used 
to meet Mission to Planet Earth's baseline scientific 
requirements. As part of the study, NASA is expected to 
determine what steps are necessary by both the commercial 
sector and the Federal Government to make this program 
efficient and effective. Finally, the study and data purchase 
activity is required to be carried out by the Commercial Remote 
Sensing Program (CRSP) at the Stennis Space Center. CRSP is 
widely acknowledged as one of the Nation's premier institutions 
for stimulating private investment in space capabilities that 
help meet government needs. Because CRSP is small, streamlined, 
and horizontally organized, the program succeeds largely 
because it is able to make decisions quickly and enjoys a 
degree of autonomy that reduces bureaucratic costs.

Title III--Federal Acquisition of Space Transportation Services

Section 301 Requirement to Procure Commercial Space Transportation 
        Services

Sectional Analysis

    Requires the Federal Government to procure space 
transportation services from U.S. commercial providers and, to 
the maximum practicable extent, plan missions to accommodate 
the space transportation capabilities of U.S. commercial 
providers. Exceptions to this policy: the payload requires the 
unique capabilities of the Space Shuttle; U.S. commercial 
providers cannot provide cost-effective space transportation 
services when required; the use of space transportation 
services from U.S. commercial providers poses an unacceptable 
risk of loss of a unique scientific opportunity; the use of 
space transportation services from U.S. commercial providers is 
inconsistent with U.S. national security objectives; it is more 
cost-effective to launch a payload in conjunction with the test 
or demonstration of a space transportation vehicle owned by the 
Federal Government; or a payload can make use of the available 
cargo space on a Space Shuttle mission as a secondary payload, 
and such payload is consistent with specific requirements 
authorized by the Administrator. Directs only the Secretary of 
the Air Force or the NASA Administrator to make determinations 
about when an exception shall be granted. Does not apply to 
space transportation services and vehicles acquired or owned by 
the Federal Government before the enactment date or to 
contracts for such acquisition or ownership that have been 
entered into prior to the enactment date.

Committee Views

    This provision is intended to promote the operation of a 
market in space transportation services that will enable U.S. 
commercial space transportation companies to focus their 
business on beating foreign competition in providing such 
services, rather than on increasing the award fee in contracts 
with the Federal Government. To its credit, NASA already 
purchases space transportation services commercially. The 
Department of Defense, however, continues to purchase space 
transportation vehicles instead of services. It is concerned 
that the classified nature of many Defense Department payloads 
would be at risk if the Department procured commercial space 
transportation services from the commercial sector. The 
commercial sector actually builds the classified payloads that 
Department of Defense launches. If the Defense Department can 
accept that the commercial sector can build its classified 
payloads, then it should be able to accept the commercial 
sector launching them. In any event, the section does address 
Defense Department concerns by making an exception to the 
requirement to purchase commercial space transportation 
services in cases where that is inconsistent with U.S. national 
security. Furthermore, the ``case-by-case'' determination by 
the Secretary of the Air Force, as required in Title III, 
Section 301, paragraph (b), is not required for each individual 
launch. The Secretary may make a blanket determination for a 
class of payloads--such as Global Positioning System Satellites 
or Defense Support Program satellites--as part of the approval 
process for a space program acquisition decision.

Section 302 Acquisition of Space Transportation Services

Sectional Analysis

    Space transportation services are to be considered a 
``commercial item'' for purposes of acquisition laws and 
regulations.

Committee Views

    Consistent with ongoing efforts to reform the federal 
procurement system and reduce the costs of government activity, 
this section requires the Federal Government to act in the 
manner of a commercial customer when it procures space 
transportation services.

Section 303 Launch Services Purchase Act of 1990 Amendments

Sectional Analysis

    Updates the Launch Services Purchase Act of 1990 (42 U.S.C. 
2465b et seq.)

Committee Views

    This section updates the Launch Services Purchase Act to 
conform to other sections of the bill. It also preserves the 
prohibition against the Space Shuttle launching commercial 
payloads.

                      VII. Committee Cost Estimate

    Clause 7(a) of Rule XIII of the Rules of the House of 
Representatives requires each committee report accompanying 
each bill or joint resolution of a public character to contain: 
(1) an estimate, made by such Committee, of the costs which 
would be incurred in carrying out such bill or joint resolution 
in the fiscal year in which it is reported, and in each of the 
5 fiscal years following such fiscal year (or for the 
authorized duration of any program authorized by such bill or 
joint resolution, if less than 5 years); (2) a comparison of 
the estimate of costs described in subparagraph (1) of this 
paragraph made by such Committee with an estimate of such costs 
made by any government agency and submitted to such Committee; 
and (3) when practicable, a comparison of the total estimated 
funding level for the relevant program (or programs) with the 
appropriate levels under current law. However, clause 7(d) of 
that Rule provides that this requirement does not apply when a 
cost estimate and comparison prepared by the Director of the 
Congressional Budget Office under section 403 of the 
Congressional Budget Act of 1974 has been timely submitted 
prior to the filing of the report and included in the report 
pursuant to clause 2(l)(3)(C) of Rule XI. A cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 403 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of this 
report and included in Section VIII of this report pursuant to 
clause 2(l)(3)(C) of Rule XI.
    Clause 2(l)(3)(B) of Rule XI of the Rules of the House of 
Representatives requires each committee report that accompanies 
a measure providing new budget authority (other than continuing 
appropriations), new spending authority, or new credit 
authority, or changes in revenues or tax expenditures to 
contain a cost estimate, as required by section 308(a)(1) of 
the Congressional Budget Act of 1974 and, when practicable with 
respect to estimates of new budget authority, a comparison of 
the total estimated funding level for the relevant program (or 
programs) to the appropriate levels under current law. H.R. 
1702 does not contain any new budget authority, credit 
authority, or changes in revenues or tax expenditures. Assuming 
that the sums authorized under the bill are appropriated, H.R. 
1702 does authorize additional discretionary spending, as 
described in the Congressional Budget Office report on the 
bill, which is contained in Section VIII of this report.

            VIII. Congressional Budget Office Cost Estimate

                                Congressional Budget Office
                                              U.S. Congress
                                      Washington, DC. 20515
                                  June E. O'Neill, Director

                                                      June 24, 1997
Honorable F. James Sensenbrenner, Jr.,
Chairman, Committee on Science,
U.S. House of Representatives,
Washington, DC. 20515

    Dear Mr. Chairman:
    The Congressional Budget Office has prepared the enclosed cost 
estimate for H.R. 1702, the Commercial Space Act of 1997.
    If you wish further details on this estimate, we will be pleased to 
provide them. The CBO staff contacts are Kathleen Gramp (for federal 
costs), who can be reached at 226-2860, Pepper Santalucia (for the 
state and local impact), who can be reached at 225-3220, and Lesley 
Frymier (for the impact on the private sector), who can be reached at 
226-2940.
Sincerely,
                                  James L. Blum for June E. O'Neill

Enclosure

cc: Honorable George E. Brown, Jr., Ranking Minority Member
                                 ______
                                 
               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
                             June 24, 1997
                               H.R.  1702
                      Commercial Space Act of 1997
As ordered reported by the House Committee on Science on June 18, 1997

SUMMARY
    H.R. 1702 would revise federal policies related to the procurement 
and licensing of services and products provided by the commercial space 
industry. Assuming the appropriation of the necessary amounts, CBO 
estimates that enacting H.R. 1702 would result in increased 
discretionary spending of about $4 million to $7 million over the 1998-
2002 period. Because H.R. 1702 could affect direct spending and 
revenues, pay-as-you-go procedures would apply. CBO estimates, however, 
that any such effects would be negligible.
    The bill contains no intergovernmental mandates as defined in the 
Unfunded Mandates Reform Act of 1995 (UMRA), and would not impose any 
costs on state, local, or tribal governments. The bill would impose new 
private-sector mandates, but CBO estimates that the cost of these 
mandates would not exceed the statutory threshold established in UMRA.
    This bill would define space transportation services, remote 
sensing data, and space science data as ``commercial items'' for the 
purposes of certain procurement policies, and would require federal 
agencies to acquire these services from the private sector, subject to 
certain conditions. It would change the process and conditions for 
licensing remote sensing systems and would expand the scope of 
licensing of space transportation systems to include reentry vehicles, 
sites, and operations. The National Aeronautics and Space 
Administration (NASA) would be directed to conduct studies on 
opportunities for private sector participation in the International 
Space Station and Mission to Planet Earth. Finally, the bill would 
encourage the President to promote international acceptance of the U.S. 
Global Positioning System as the standard for such systems.
ESTIMATED COST TO THE FEDERAL GOVERNMENT
    CBO expects that federal agencies would incur additional costs 
ranging from about $4 million to $7 million over the 1998-2002 period 
to implement H.R. 1702. Assuming the appropriation of the necessary 
amounts, enacting this bill would increase discretionary spending by a 
corresponding amount. Provisions related to launch services and the 
licensing of reentry vehicles could affect direct spending and 
revenues, but CBO estimates that the effects would not be significant.
Spending Subject to Appropriation
    The estimated increase in discretionary spending primarily reflects 
the costs that would be incurred to implement the reporting and 
licensing requirements of the bill. For example, H.R. 1702 would 
require the Department of State and the Department of Defense (DOD) to 
publish lists of all international agreements and national security 
issues that pertain to the licensing of private remote sensing systems 
within 180 days after enactment. NASA would have to fund an 
independently conducted market study of private-sector interest in 
aspects of the space station and report to the Congress on 
opportunities associated with the space station and the Mission to 
Planet Earth. The bill also would direct the Office of Commercial Space 
Transportation (OCST, at the Department of Transportation) to issue 
regulations for licensing reentry vehicles, sites, and operations, and 
the National Oceanic and Atmospheric Administration (NOAA, at the 
Department of Commerce) to revise regulations related to the licensing 
of remote sensing space systems. Based on information provided by these 
agencies, CBO estimates that the cost of performing these tasks would 
total about $2 million to $3 million governmentwide in 1998.
    Provisions affecting the acquisition of space-related services are 
likely to increase agencies' administrative costs, at least in the 
near-term. Under this bill, DOD and NASA would have to issue a 
determination supporting the choice of a space transportation system 
for each launch rather than making these decisions for clusters of 
systems (e.g., based on performance blocks or payload risk). CBO 
estimates that federal spending would increase by about $2 million to 
$4 million over the 1998-2002 period because of the additional analyses 
and studies that would be required to support the choice of services. 
According to agency officials, the provisions defining space 
transportation services, remote sensing data, and space science data as 
``commercial items'' could increase the time and effort involved in 
evaluating contracts because that designation would limit the scope of 
information readily available from vendors on product specifications. 
The potential impact of this change on agencies' costs is difficult to 
project with any certainty, however.
    CBO estimates that directing NASA to purchase space science and 
Earth system data from commercial providers when cost-effective would 
not significantly affect federal spending. Several agencies, including 
NOAA, the U.S. Geological Survey, and the Federal Emergency Management 
Agency, currently buy remote sensing data from NASA at its marginal 
cost, which may be less than what they would have to pay if NASA had to 
acquire the information from commercial providers. Assuming that NASA 
would purchase commercial data only if the terms of the acquisition 
would be cost-effective governmentwide, these provisions should not 
increase costs to the government. At the same time, very few commercial 
ventures now provide the kinds of data used by federal agencies, so 
there is no basis for estimating any near-term savings for the 
government from this policy.
    Likewise, CBO estimates that the provisions in the bill requiring 
DOD and NASA to acquire space transportation systems from commercial 
providers when cost-effective are unlikely to have a significant effect 
on federal spending for launch services over the next five years. 
Launch services for most DOD missions planned for the 1998-2002 period, 
for example, are already under contract and hence would be exempt from 
the mandates that would be imposed by H.R. 1702. Any reduction in the 
government's cost of space transportation services resulting from this 
bill would most likely occur sometime in the future.
    Finally, H.R. 1702 would strengthen the government's obligation to 
reimburse licensees of remote sensing systems for the cost of technical 
modifications needed to comply with conditions that DOD or the State 
Department impose on these licensees for national security purposes. 
Because CBO expects these agencies to reimburse licensees for all 
appropriate costs under current law, we estimate that requiring such 
payments would not significantly change the amounts that would be paid. 
Other provisions of the bill would not have a significant effect on 
discretionary spending.
Direct Spending
    Enacting H.R. 1702 could affect the collecting and spending of 
receipts paid by nonfederal entities that use federal launch property 
or services, but we estimate that the net impact would not be 
significant. Under current law, nonfederal entities reimburse DOD and 
NASA for using such facilities and the agencies directly spend the 
proceeds to cover the costs incurred. Because any increase in receipts 
resulting from additional commercial activity would be offset by direct 
spending, the net effect of the bill on direct spending would be 
negligible.
Revenues
    H.R. 1702 would allow OCST to impose civil penalties on violators 
of licensing agreements, which could affect revenues. CBO estimates 
that any additional receipts from civil penalties associated with the 
OCST licensing activities required by this bill would be insignificant. 
To date, OCST has never collected a penalty for a violation of the 
licensing and related requirements of the commercial space 
transportation program.
PAY-AS-YOU-GO CONSIDERATIONS
    Section 252 of the Balanced Budget and Emergency Deficit Control 
Act of 1985 sets up pay-as-you-go procedures for legislation affecting 
direct spending or receipts through 1998. Enacting H.R. 1702 could 
affect direct spending and receipts because of provisions involving 
reimbursement for the use of certain federal services and facilities 
and imposing civil penalties for failure to comply with space 
transportation regulations. CBO estimates, however, that these 
provisions would have little or no budgetary impact.
ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS
    H.R. 1702 contains no intergovernmental mandates as defined in 
UMRA, and would not impose any costs on state, local, or tribal 
governments. The bill would broaden the scope of the Department of 
Transportation's commercial space transportation program to include 
inspace transportation and reentry activities, rather than just launch 
activities. One of the purposes of this program is to facilitate the 
participation of state governments in the provision of space 
transportation infrastructure, such as launch sites. The Secretary of 
Transportation is required to make excess launch property available to 
state governments. By broadening the scope of the program, the bill 
would enable states to receive additional assistance if they choose to 
participate.
ESTIMATED IMPACT ON THE PRIVATE SECTOR
    Section 102 would require operators of reentry sites to obtain a 
license from the OCST for reentry sites, vehicles, and services. CBO 
estimates that the direct costs of these private sector mandates would 
not exceed the statutory threshold ($100 million in 1996, adjusted 
annually for inflation) established in UMRA in any one year.
PREVIOUS CBO ESTIMATE
    On April 21, 1997, CBO transmitted a cost estimate for H.R. 1275, 
the Civilian Space Authorization Act, Fiscal Years 1998 and 1999, as 
ordered reported by the House Committee on Science on April 16, 1997. 
H.R. 1275 included provisions similar to those in H.R. 1702 regarding 
OCST licensing and NASA's acquisition of remote sensing and space 
science data. Unlike H.R. 1275, the OCST provisions of H.R. 1702 would 
not affect direct spending because this bill would not change the 
statutory basis of the fees paid to reimburse federal agencies for the 
use of launch services or facilities.
ESTIMATE PREPARED BY:
    Federal Costs: Kathleen Gramp (226-2860)
    Impact on State, Local, and Tribal Governments: Pepper Santalucia 
(225-3220)
    Impact on the Private Sector: Lesley Frymier (226-2940)
ESTIMATE APPROVED BY:
    Paul N. Van de Water, Assistant Director for Budget Analysis

                  IX. Compliance with Public Law 104-4

    H.R. 1702 contains no unfunded mandates.

          X. Committee Oversight Findings and Recommendations

    Clause 2(l)(3)(A) of Rule XI of the Rules of the House of 
Representatives requires each committee report to include 
oversight findings and recommendations required pursuant to 
clause 2(b)(1) of Rule X. The Committee has no oversight 
findings.

    XI. Oversight Findings and Recommendations by the Committee on 
                    Government Reform and Oversight

    Clause 2(l)(3)(D) of Rule XI of the Rules of the House of 
Representatives requires each committee report to contain a 
summary of the oversight findings and recommendations made by 
the House Government Reform and Oversight Committee pursuant to 
clause 4(c)(2) of Rule X, whenever such findings and 
recommendations have been submitted to the Committee in a 
timely fashion. The Committee on Science has received no such 
findings or recommendations from the Committee on Government 
Reform and Oversight.

                XII. Constitutional Authority Statement

    Clause 2(l)(4) of Rule XI of the Rules of the House of 
Representatives requires each report of a Committee on a bill 
or joint resolution of a public character to include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the law proposed by the bill or joint 
resolution. Article 1, section 8 of the Constitution of the 
United States grants Congress the authority to enact H.R. 1702.

               XIII. Federal Advisory Committee Statement

    This legislation does not establish, or authorize the 
establishment of, any new Federal Advisory Committee.

                 XIV. Congressional Accountability Act

    The Committee finds that H.R. 1702 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act (Public Law 104-1).

                XV. Effects of Legislation on Inflation

    The legislation should have no effect on inflation rates.

       XVI. Changes in Existing Law Made by the Bill, as Reported



    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

              CHAPTER 701 OF TITLE 49, UNITED STATES CODE

          * * * * * * *

            CHAPTER 701--COMMERCIAL SPACE LAUNCH ACTIVITIES

Sec.
70101.  Findings and purposes.
     * * * * * * *
[70104.  Restrictions on launches and operations.]
70104.  Restrictions on launches, operations, and reentries.
     * * * * * * *
[70108.  Prohibition, suspension, and end of launches and operation of 
          launch sites.
[70109.  Preemption of scheduled launches.]
70108.  Prohibition, suspension, and end of launches, operation of 
          launch sites and reentry sites, and reentries.
70109.  Preemption of scheduled launches or reentries.
     * * * * * * *
70120.  Regulations.
70121.  Report to Congress.

Sec. 70101. Findings and purposes

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

Sec. 70102. Definitions

    In this chapter--
            (1) * * *
          * * * * * * *
            (3) ``launch'' means to place or try to place a 
        launch vehicle [and any payload] or reentry vehicle and 
        any payload from Earth--
                    (A) in a suborbital trajectory;
                    (B) in Earth orbit in outer space; or
                    (C) otherwise in outer space[.],
        including activities involved in the preparation of a 
        launch vehicle or payload for launch, when those 
        activities take place at a launch site in the United 
        States.
            (4) ``launch property'' means an item built for, or 
        used in, the launch preparation or launch of a launch 
        vehicle.
            (5) ``launch services'' means--
                    (A) activities directly related to the 
                preparation of a launch site or payload 
                facility for one or more launches;
                    [(A)] (B) activities involved in the 
                preparation of a launch vehicle and payload for 
                launch; and
                    [(B)] (C) the conduct of a launch.
          * * * * * * *
            (8) ``payload'' means an object that a person 
        undertakes to place in outer space by means of a launch 
        vehicle or reentry vehicle, including components of the 
        vehicle specifically designed or adapted for that 
        object.
            (9) ``person'' means an individual and an entity 
        organized or existing under the laws of a State or 
        country.
            (10) ``reenter'' and ``reentry'' mean to return or 
        attempt to return, purposefully, a reentry vehicle and 
        its payload, if any, from Earth orbit or from outer 
        space to Earth.
            (11) ``reentry services'' means--
                    (A) activities involved in the preparation 
                of a reentry vehicle and its payload, if any, 
                for reentry; and
                    (B) the conduct of a reentry.
            (12) ``reentry site'' means the location on Earth 
        to which a reentry vehicle is intended to return (as 
        defined in a license the Secretary issues or transfers 
        under this chapter).
            (13) ``reentry vehicle'' means a vehicle designed 
        to return from Earth orbit or outer space to Earth, or 
        a reusable launch vehicle designed to return from outer 
        space to Earth, substantially intact.
            [(10)] (14) ``State'' means a State of the United 
        States, the District of Columbia, and a territory or 
        possession of the United States.
            [(11)] (15) ``third party'' means a person except--
                    (A) the United States Government or the 
                Government's contractors or subcontractors 
                involved in launch services or reentry 
                services;
                    (B) a licensee or transferee under this 
                chapter;
                    (C) a licensee's or transferee's 
                contractors, subcontractors, or customers 
                involved in launch services or reentry 
                services; or
                    (D) the customer's contractors or 
                subcontractors involved in launch services or 
                reentry services.
            [(12)] (16) ``United States'' means the States of 
        the United States, the District of Columbia, and the 
        territories and possessions of the United States.

Sec. 70103. General authority

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

[Sec. 70104. Restrictions on launches and operations]

Sec. 70104. Restrictions on launches, operations, and reentries

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

Sec. 70105. License applications and requirements

    (a) Applications.--(1) A person may apply to the Secretary 
of Transportation for a license or transfer of a license under 
this chapter in the form and way the Secretary prescribes. 
Consistent with the public health and safety, safety of 
property, and national security and foreign policy interests of 
the United States, the Secretary, not later than 180 days after 
[receiving an application] accepting an application in 
accordance with criteria established pursuant to subsection 
(b)(2)(D), shall issue or transfer a license if the Secretary 
decides in writing that the applicant complies, and will 
continue to comply, with this chapter and regulations 
prescribed under this chapter. The Secretary shall inform the 
applicant of any pending issue and action required to resolve 
the issue if the Secretary has not made a decision not later 
than 120 days after [receiving an application] accepting an 
application in accordance with criteria established pursuant to 
subsection (b)(2)(D). The Secretary shall submit to the 
Committee on Science of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate a written notice not later than 30 days after any 
occurrence when a license is not issued within the deadline 
established by this subsection.
    (2) In carrying out paragraph (1), the Secretary may 
establish procedures for safety approvals of launch vehicles, 
reentry vehicles, safety systems, processes, services, or 
personnel that may be used in conducting licensed commercial 
space launch or reentry activities.
    (b) Requirements.--(1) Except as provided in this 
subsection, all requirements of the laws of the United States 
applicable to the launch of a launch vehicle or the operation 
of a launch site or a reentry site, or the reentry of a reentry 
vehicle, are requirements for a license under this chapter.
    (2) The Secretary may prescribe--
            (A) any term necessary to ensure compliance with 
        this chapter, including on-site verification that a 
        launch [or operation], operation, or reentry complies 
        with representations stated in the application;
            (B) an additional requirement necessary to protect 
        the public health and safety, safety of property, 
        national security interests, and foreign policy 
        interests of the United States; [and]
            (C) by regulation that a requirement of a law of 
        the United States not be a requirement for a license if 
        the Secretary, after consulting with the head of the 
        appropriate executive agency, decides that the 
        requirement is not necessary to protect the public 
        health and safety, safety of property, and national 
        security and foreign policy interests of the United 
        States[.]; and
            (D) regulations establishing criteria for accepting 
        or rejecting an application for a license under this 
        chapter within 60 days after receipt of such 
        application.
    (3) The Secretary may waive a requirement, including the 
requirement to obtain a license, for an individual applicant if 
the Secretary decides that the waiver is in the public interest 
and will not jeopardize the public health and safety, safety of 
property, and national security and foreign policy interests of 
the United States.
    (c) Procedures and Timetables.--The Secretary shall 
establish procedures and timetables that expedite review of a 
license application and reduce the regulatory burden for an 
applicant.

Sec. 70106. Monitoring activities

    (a) General Requirements.--A licensee under this chapter 
must allow the Secretary of Transportation to place an officer 
or employee of the United States Government or another 
individual as an observer at a launch site or reentry site the 
licensee uses, at a production facility or assembly site a 
contractor of the licensee uses to produce or assemble a launch 
vehicle or reentry vehicle, or at a site at which a payload is 
integrated with a launch vehicle or reentry vehicle. The 
observer will monitor the activity of the licensee or 
contractor at the time and to the extent the Secretary 
considers reasonable to ensure compliance with the license or 
to carry out the duties of the Secretary under section 70104(c) 
of this title. A licensee must cooperate with an observer 
carrying out this subsection.
          * * * * * * *

[Sec. 70108. Prohibition, suspension, and end of launches and operation 
                    of launch sites]

Sec. 70108. Prohibition, suspension, and end of launches, operation of 
                    launch sites and reentry sites, and reentries

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

[Sec. 70109. Preemption of scheduled launches]

Sec. 70109. Preemption of scheduled launches or reentries

    (a) General.--With the cooperation of the Secretary of 
Defense and the Administrator of the National Aeronautics and 
Space Administration, the Secretary of Transportation shall act 
to ensure that a launch or reentry of a payload is not 
preempted from access to a United States Government launch 
site, reentry site, or launch property, except for imperative 
national need, when a launch date commitment or reentry date 
commitment from the Government has been obtained for a launch 
or reentry licensed under this chapter. A licensee or 
transferee preempted from access to a launch site, reentry 
site, or launch property does not have to pay the Government 
any amount for launch services, or services related to a 
reentry, attributable only to the scheduled launch or reentry 
prevented by the preemption.
          * * * * * * *
    (c) Reports.--In cooperation with the Secretary of 
Transportation, the Secretary of Defense or the Administrator, 
as appropriate, shall submit to Congress not later than 7 days 
after a decision to preempt under subsection (a) of this 
section, a report that includes an explanation of the 
circumstances justifying the decision and a schedule for 
ensuring the prompt launching or reentry of a preempted 
payload.

Sec. 70110. Administrative hearings and judicial review

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

Sec. 70111. Acquiring United States Government property and services

    (a) General Requirements and Considerations.--(1) The 
Secretary of Transportation shall facilitate and encourage the 
acquisition by the private sector and State governments of--
            (A) launch or reentry property of the United States 
        Government that is excess or otherwise is not needed 
        for public use; and
            (B) launch services and reentry services, including 
        utilities, of the Government otherwise not needed for 
        public use.
The Secretary shall establish criteria and procedures for 
determining the priority of competing requests from the private 
sector and State governments for property and services under 
this section.
    (2) In acting under paragraph (1) of this subsection, the 
Secretary shall consider the commercial availability on 
reasonable terms of substantially equivalent launch property or 
launch services or reentry services from a domestic source.
    (b) Price.--(1) In this subsection, ``direct costs'' means 
the actual costs that--
            (A) can be associated unambiguously with a 
        commercial launch or reentry effort; and
            (B) the Government would not incur if there were no 
        commercial launch or reentry effort.
    (2) In consultation with the Secretary, the head of the 
executive agency providing the property or service under 
subsection (a) of this section shall establish the price for 
the property or service. The price for--
            (A) * * *
          * * * * * * *
            (C) launch services or reentry services is an 
        amount equal to the direct costs, including the basic 
        pay of Government civilian and contractor personnel, 
        the Government incurred because of acquisition of the 
        services.
    (3) The Secretary shall ensure the establishment of uniform 
guidelines for, and consistent implementation of, this section 
by all Federal agencies.
          * * * * * * *
    (d) Collection by Other Governmental Heads.--The head of a 
department, agency, or instrumentality of the Government may 
collect a payment for an activity involved in producing a 
launch vehicle [or its payload for launch] or reentry vehicle, 
or the payload of either, for launch or reentry if the activity 
was agreed to by the owner or manufacturer of the launch 
vehicle, or reentry vehicle, or payload.

Sec. 70112. Liability insurance and financial responsibility 
                    requirements

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

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

    (a) General Requirements.--(1) To the extent provided in 
advance in an appropriation law or to the extent additional 
legislative authority is enacted providing for paying claims in 
a compensation plan submitted under subsection (d) of this 
section, the Secretary of Transportation shall provide for the 
payment by the United States Government of a successful claim 
(including reasonable litigation or settlement expenses) of a 
third party against a licensee or transferee under this 
chapter, a contractor, subcontractor, or customer of the 
licensee or transferee, or a contractor or subcontractor of a 
customer, resulting from an activity carried out under the 
license issued or transferred under this chapter for death, 
bodily injury, or property damage or loss resulting from an 
activity carried out under the license. However, claims may be 
paid under this section only to the extent the total amount of 
successful claims related to one launch or reentry--
            (A) is more than the amount of insurance or 
        demonstration of financial responsibility required 
        under section 70112(a)(1)(A) of this title; and
            (B) is not more than $1,500,000,000 (plus 
        additional amounts necessary to reflect inflation 
        occurring after January 1, 1989) above that insurance 
        or financial responsibility amount.
          * * * * * * *
    (d) Surveys, Reports, and Compensation Plans.--(1) If as a 
result of an activity carried out under a license issued or 
transferred under this chapter the total of claims related to 
one launch or reentry is likely to be more than the amount of 
required insurance or demonstration of financial 
responsibility, the Secretary shall--
            (A) survey the causes and extent of damage; and
            (B) submit expeditiously to Congress a report on 
        the results of the survey.
    (2) Not later than 90 days after a court determination 
indicates that the liability for the total of claims related to 
one launch or reentry may be more than the required amount of 
insurance or demonstration of financial responsibility, the 
President, on the recommendation of the Secretary, shall submit 
to Congress a compensation plan that--
            (A) outlines the total dollar value of the claims;
            (B) recommends sources of amounts to pay for the 
        claims;
            (C) includes legislative language required to carry 
        out the plan if additional legislative authority is 
        required; and
            (D) for a single event or incident, may not be for 
        more than $1,500,000,000.
          * * * * * * *

Sec. 70115. Enforcement and penalty

    (a) * * *
    (b) General Authority.--(1) In carrying out this chapter, 
the Secretary of Transportation may--
            (A) conduct investigations and inquiries;
            (B) administer oaths;
            (C) take affidavits; and
            (D) under lawful process--
                    (i) enter at a reasonable time a launch 
                site, reentry site, production facility, 
                assembly site of a launch vehicle or reentry 
                vehicle, or site at which a payload is 
                integrated with a launch vehicle or reentry 
                vehicle to inspect an object to which this 
                chapter applies or a record or report the 
                Secretary requires be made or kept under this 
                chapter; and
                    (ii) seize the object, record, or report 
                when there is probable cause to believe the 
                object, record, or report was used, is being 
                used, or likely will be used in violation of 
                this chapter.
          * * * * * * *

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

    (a) Executive Agencies.--Except as provided in this 
chapter, a person is not required to obtain from an executive 
agency a license, approval, waiver, or exemption to launch a 
launch vehicle or operate a launch site or reentry site, or to 
reenter a reentry vehicle.
          * * * * * * *
    (d) Consultation.--The Secretary of Transportation is 
encouraged to consult with a State to simplify and expedite the 
approval of a space launch or reentry activity.
          * * * * * * *
    [(f) Launch Not an Export.--A launch vehicle or payload 
that is launched is not, because of the launch, an export for 
purposes of a law controlling exports.]
    (f) Launch Not an Export; Reentry Not an Import.--A launch 
vehicle, reentry vehicle, or payload that is launched or 
reentered is not, because of the launch or reentry, an export 
or import, respectively, for purposes of a law controlling 
exports or imports.
    (g) Nonapplication.--This chapter does not apply to--
            (1) a launch, [operation of a launch vehicle or 
        launch site,] reentry, operation of a launch vehicle or 
        reentry vehicle, operation of a launch site or reentry 
        site, or other space activity the Government carries 
        out for the Government; or
            (2) planning or policies related to the launch, 
        reentry, operation, or activity.
          * * * * * * *

Sec. 70120. Regulations

    (a) In General.--The Secretary of Transportation, within 9 
months after the date of the enactment of this section, shall 
issue regulations to carry out this chapter that include--
            (1) guidelines for industry and State governments 
        to obtain sufficient insurance coverage for potential 
        damages to third parties;
            (2) procedures for requesting and obtaining 
        licenses to launch a commercial launch vehicle;
            (3) procedures for requesting and obtaining 
        operator licenses for launch;
            (4) procedures for requesting and obtaining launch 
        site operator licenses; and
            (5) procedures for the application of government 
        indemnification.
    (b) Reentry.--The Secretary of Transportation, within 6 
months after the date of the enactment of this section, shall 
issue a notice of proposed rulemaking to carry out this chapter 
that includes--
            (1) procedures for requesting and obtaining 
        licenses to reenter a reentry vehicle;
            (2) procedures for requesting and obtaining 
        operator licenses for reentry; and
            (3) procedures for requesting and obtaining reentry 
        site operator licenses.

Sec. 70121. Report to Congress

    The Secretary of Transportation shall submit to Congress an 
annual report to accompany the President's budget request 
that--
            (1) describes all activities undertaken under this 
        chapter, including a description of the process for the 
        application for and approval of licenses under this 
        chapter and recommendations for legislation that may 
        further commercial launches and reentries; and
            (2) reviews the performance of the regulatory 
        activities and the effectiveness of the Office of 
        Commercial Space Transportation.
                              ----------                              


   SECTION 504 OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 
                  AUTHORIZATION ACT, FISCAL YEAR 1993

SEC. 504. LAUNCH VOUCHER DEMONSTRATION PROGRAM.

    (a) Commercial Space Voucher Demonstration Program; 
Effective Period.--The Administrator shall establish a 
demonstration program to award vouchers for the payment of 
commercial launch services and payload integration services for 
the purpose of launching payloads funded by [the Office of 
Commercial Programs within] the National Aeronautics and Space 
Administration to become effective October 1, 1993. [Such 
program shall not be effective after September 30, 1995.]
          * * * * * * *
    [(c) Assumption of Certain Responsibilities.--In carrying 
out the demonstration program established under subsection (a), 
the Administrator, in awarding vouchers, is limited to the 
launch of payloads funded by the Office of Commercial Programs 
within the National Aeronautics and Space Administration.]
    [(d)] (c) Assistance.--The Administrator may provide 
voucher award recipients with such assistance, including 
contract formulation and technical support during the proposal 
evaluation, as may be necessary, to ensure the purchase of cost 
effective and reasonably reliable commercial launch services 
and payload integration services.
    [(e)] (d) Report.--The Administrator shall conduct an 
ongoing review of the program established under this section, 
and shall, not later than January 31, 1995, report to Congress 
the results of such a review, together with recommendations for 
further action relating to the program.
                              ----------                              


                 LAND REMOTE SENSING POLICY ACT OF 1992

          * * * * * * *

SEC. 2. FINDINGS.

    The Congress finds and declares the following:
            (1) * * *
          * * * * * * *
            [(5) Given the importance of the Landsat program to 
        the United States, urgent actions, including expedited 
        procurement procedures, are required to ensure data 
        continuity.
            [(6) Full commercialization of the Landsat program 
        cannot be achieved within the foreseeable future, and 
        thus should not serve as the near-term goal of national 
        policy on land remote sensing; however, 
        commercialization of land remote sensing should remain 
        a long-term goal of United States policy.]
            (5) Commercialization of land remote sensing is a 
        near-term goal, and should remain a long-term goal, of 
        United States policy.
            [(7)] (6) Despite the success and importance of the 
        Landsat system, funding and organizational 
        uncertainties over the past several years have placed 
        its future in doubt and have jeopardized United States 
        leadership in land remote sensing.
            [(8)] (7) Recognizing the importance of the Landsat 
        program in helping to meet national and commercial 
        objectives, the President approved, on February 11, 
        1992, a National Space Policy Directive which was 
        developed by the National Space Council and commits the 
        United States to ensuring the continuity of Landsat 
        coverage into the 21st century.
            [(9)] (8) Because Landsat data are particularly 
        important for national security purposes and global 
        environmental change research, management 
        responsibilities for the program should be transferred 
        from the Department of Commerce to an integrated 
        program management involving the Department of Defense 
        and the National Aeronautics and Space Administration.
            [(10)] (9) Regardless of management 
        responsibilities for the Landsat program, the Nation's 
        broad civilian, national security, commercial, and 
        foreign policy interests in remote sensing will best be 
        served by ensuring that Landsat remains an unclassified 
        program that operates according to the principles of 
        open skies and nondiscriminatory access.
            [(11)] (10) Technological advances aimed at 
        reducing the size and weight of satellite systems hold 
        the potential for dramatic reductions in the cost, and 
        substantial improvements in the capabilities, of future 
        land remote sensing systems, but such technological 
        advances have not been demonstrated for land remote 
        sensing and therefore cannot be relied upon as the sole 
        means of achieving data continuity for the Landsat 
        program.
            [(12)] (11) A technology demonstration program 
        involving advanced remote sensing technologies could 
        serve a vital role in [determining the design of a 
        follow-on spacecraft to Landsat 7, while also helping 
        to determine whether such a spacecraft should be funded 
        by the United States Government, by the private sector, 
        or by an international consortium] ensuring the 
        continuity of Landsat quality data.
            [(13)] (12) To maximize the value of the Landsat 
        program to the American public, unenhanced Landsat 4 
        through 6 data should be made available, at a minimum, 
        to United States Government agencies, to global 
        environmental change researchers, and to other 
        researchers who are financially supported by the United 
        States Government, at the cost of fulfilling user 
        requests, and unenhanced Landsat 7 data should be made 
        available to all users at the cost of fulfilling user 
        requests.
            [(14)] (13) To stimulate development of the 
        commercial market for unenhanced data and value-added 
        services, the United States Government should adopt a 
        data policy for Landsat 7 which allows competition 
        within the private sector for distribution of 
        unenhanced data and value-added services.
            [(15)] (14) Development of the remote sensing 
        market and the provision of commercial value-added 
        services based on remote sensing data should remain 
        exclusively the function of the private sector.
            [(16)] (15) It is in the best interest of the 
        United States to maintain a permanent, comprehensive 
        Government archive of global Landsat and other land 
        remote sensing data for long-term monitoring and study 
        of the changing global environment.
          * * * * * * *

                            TITLE I--LANDSAT

SEC. 101. LANDSAT PROGRAM MANAGEMENT.

    (a) * * *
    (c) Responsibilities.--The Landsat Program Management shall 
be responsible for--
            (1) * * *
          * * * * * * *
            (6) oversight of Landsat contracts entered into 
        under sections 102 and 103; and
            [(7) coordination of a technology demonstration 
        program, pursuant to section 303; and]
            [(8)] (7) ensuring that copies of data acquired by 
        the Landsat system are provided to the National 
        Satellite Land Remote Sensing Data Archive.
          * * * * * * *
    (e) Landsat Advisory Process.--
            (1) Establishment.--The Landsat Program Management 
        shall seek impartial advice and comments regarding the 
        status, effectiveness, and operation of the Landsat 
        system, using existing advisory committees and other 
        appropriate mechanisms. Such advice shall be sought 
        from individuals who represent--
                    (A) a broad range of perspectives on basic 
                and applied science and operational needs with 
                respect to land remote sensing data; and
                    (B) the full spectrum of users of Landsat 
                data, including representatives from United 
                States Government agencies, State and local 
                government agencies, academic institutions, 
                nonprofit organizations, value-added companies, 
                the agricultural, mineral extraction, and other 
                user industries, and the public[, and].
                    [(C) a broad diversity of age groups, 
                sexes, and races.]
          * * * * * * *

      TITLE II--LICENSING OF PRIVATE REMOTE SENSING SPACE SYSTEMS

SEC. 201. GENERAL LICENSING AUTHORITY.

    (a) * * *
    (b) Compliance With the Law, Regulations, International 
Obligations, and National Security.--[No license shall be 
granted by the Secretary unless the Secretary determines in 
writing that the applicant will comply](1) The Secretary shall 
grant a license if the Secretary determines that the activities 
proposed in the application are consistent with the 
requirements of this Act, any regulations issued pursuant to 
this Act, and any applicable international obligations and 
national security concerns of the United States.
    (2) The Secretary, within 6 months after the date of the 
enactment of the Commercial Space Act of 1997, shall publish in 
the Federal Register a complete and specific list of all 
information required to comprise a complete application for a 
license under this title. An application shall be considered 
complete when the applicant has provided all information 
required by the list most recently published in the Federal 
Register before the date the application was first submitted. 
Unless the Secretary has, within 30 days after receipt of an 
application, notified the applicant of information necessary to 
complete an application, the Secretary may not deny the 
application on the basis of the absence of any such 
information.
    (c) Deadline for Action on Application.--The Secretary 
shall review any application and make a determination thereon 
within 120 days of the receipt of such application. [If final 
action has not occurred within such time, the Secretary shall 
inform the applicant of any pending issues and of actions 
required to resolve them.] If the Secretary has not granted the 
license within such 120-day period, the Secretary shall inform 
the applicant, within such period, of any pending issues and 
actions required to be carried out by the applicant or the 
Secretary in order to result in the granting of a license.
          * * * * * * *
    (e) Requirement To Provide Unenhanced Data.--(1) * * *
    (2) The Secretary shall make a designation under paragraph 
(1) after determining that--
            (A) * * *
            (B) it is in the interest of the United States to 
        require such data to be provided by the licensee 
        consistent with section 202(b)(3), after considering 
        the impact on the licensee [and the importance of 
        promoting widespread access to remote sensing data from 
        United States and foreign systems].
          * * * * * * *

SEC. 202. CONDITIONS FOR OPERATION.

    (a) * * *
    (b) Licensing Requirements.--Any license issued pursuant to 
this title shall specify that the licensee shall comply with 
all of the requirements of this Act and shall--
            (1) operate the system in such manner as to 
        preserve the national security of the United States and 
        to observe the international obligations of the United 
        States in accordance with section [506] 507;
            (2) make available to the government of any country 
        (including the United States) unenhanced data collected 
        by the system concerning the territory under the 
        jurisdiction of such government [as soon as such data 
        are available and on reasonable terms and conditions] 
        on reasonable terms and conditions, including the 
        provision of such data in a timely manner;
          * * * * * * *
            (6) notify the Secretary of [any agreement] any 
        significant or substantial agreement relating to land 
        remote sensing the licensee intends to enter with a 
        foreign nation, entity, or consortium involving foreign 
        nations or entities.
The Secretary may not seek to enjoin a company from entering 
into a foreign agreement the Secretary receives notification of 
under paragraph (6) unless the Secretary has, within 30 days 
after receipt of such notification, transmitted to the licensee 
a statement that such agreement is inconsistent with the 
national security or international obligations of the United 
States, including an explanation of such inconsistency.
          * * * * * * *

SEC. 203. ADMINISTRATIVE AUTHORITY OF THE SECRETARY.

    (a) Functions.--In order to carry out the responsibilities 
specified in this title, the Secretary may--
            (1) grant, condition, or transfer licenses under 
        this Act;
            (2) seek an order of injunction or similar judicial 
        determination from a United States District Court with 
        personal jurisdiction over the licensee to terminate, 
        modify, or suspend licenses [under this title and] 
        under this title and/or to terminate licensed 
        operations on an immediate basis, if the Secretary 
        determines that the licensee has substantially failed 
        to comply with any provisions of this Act, with any 
        terms, conditions, or restrictions of such license, or 
        with any international obligations or national security 
        concerns of the United States.
          * * * * * * *

SEC. 204. REGULATORY AUTHORITY OF THE SECRETARY.

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

SEC. 205. AGENCY ACTIVITIES.

    (a) * * *
          * * * * * * *
    (c) Agreements.--To the extent provided in advance by 
appropriation Acts, any United States Government agency may 
enter into agreements for such utilization if such agreements 
are consistent with such agency's mission and statutory 
authority, and [if such remote sensing space system is licensed 
by the Secretary before commencing operation] if such private 
remote sensing space system will be licensed by the Secretary 
before commencing its commercial operation.
          * * * * * * *

SEC. 206. NOTIFICATION.

    (a) Limitations on Licensee.--Not later than 30 days after 
a determination by the Secretary to require a licensee to limit 
collection or distribution of data from a system licensed under 
this title, the Secretary shall provide written notification to 
Congress of such determination, including the reasons therefor, 
the limitations imposed on the licensee, and the period during 
which such limitations apply.
    (b) Termination, Modification, or Suspension.--Not later 
than 30 days after an action by the Secretary to seek an order 
of injunction or other judicial determination pursuant to 
section 202(b) or section 203(a)(2), the Secretary shall 
provide written notification to Congress of such action and the 
reasons therefor.

          TITLE III--RESEARCH, DEVELOPMENT, AND DEMONSTRATION

SEC. 301.  CONTINUED FEDERAL RESEARCH AND DEVELOPMENT.

    (a) Roles of NASA and Department of Defense.--(1) The 
Administrator and the Secretary of Defense are directed to 
continue and to enhance programs of remote sensing research and 
development.
    (2) The Administrator is authorized and encouraged to--
            (A) conduct experimental space remote sensing 
        programs (including applications demonstration programs 
        and basic research at universities);
            (B) develop remote sensing technologies and 
        techniques, including those needed for monitoring the 
        Earth and its environment, that are not being 
        commercially developed; and
          * * * * * * *
    (d) Duplication of Commercial Sector Activities.--The 
Federal Government shall not undertake activities under this 
section which duplicate activities available from the United 
States commercial sector, unless such activities would result 
in significant cost savings to the Federal Government, or are 
necessary for reasons of national security or international 
obligations.

SEC. 302. AVAILABILITY OF FEDERALLY GATHERED UNENHANCED DATA.

    [(a) General Rule.--]All unenhanced land remote sensing 
data gathered and owned by the United States Government[, 
including unenhanced data gathered under the technology 
demonstration program carried out pursuant to section 303,] 
that is not otherwise available from the commercial sector 
shall be made available to users in a timely fashion.
    [(b) Protection for Commercial Data Distributor.--The 
President shall seek to ensure that unenhanced data gathered 
under the technology demonstration program carried out pursuant 
to section 303 shall, to the extent practicable, be made 
available on terms that would not adversely effect the 
commercial market for unenhanced data gathered by the Landsat 6 
spacecraft.

[SEC. 303. TECHNOLOGY DEMONSTRATION PROGRAM.

    [(a) Establishment.--As a fundamental component of a 
national land remote sensing strategy, the President shall 
establish, through appropriate United States Government 
agencies, a technology demonstration program. The goals of such 
programs shall be to--
            [(1) seek to launch advanced land remote sensing 
        system components within 5 years after the date of the 
        enactment of this Act.
            [(2) demonstrate within such 5-year period advanced 
        sensor capabilities suitable for use in the anticipated 
        land remote sensing program; and
            [(3) demonstrate within such 5-year period an 
        advanced land remote sensing system design that could 
        be less expensive to procure and operate than the 
        Landsat system projected to be in operation through the 
        year 2000, and that therefore holds greater potential 
        for private sector investment and control.
    [(b) Execution of Program.--In executing the technology 
demonstration program, the President shall seek to apply 
technologies associated with United States National Technical 
Means of intelligence gathering, to the extent that such 
technologies are appropriate for the technology demonstration 
and can be declassified for such purposes without causing 
adverse harm to United States national security interests.
    [(c) Broad Application.--To the greatest extent 
practicable, the technology demonstration program established 
under subsection (a) shall be designed to be responsive to the 
broad civilian, national security, commercial, and foreign 
policy needs of the United States.
    [(d) Private Sector Funding.--The technology demonstration 
program under this section may be carried out in part with 
private sector funding.
    [(e) Landsat Program Management Coordination.--The Landsat 
Program Management shall have a coordinating role in the 
technology demonstration program carried out under this 
section.
    [(f) Report to Congress.--The President shall assess the 
progress of the technology demonstration program under this 
section and, within 2 years after the date of enactment of this 
Act, submit a report to the Congress on such progress.]
          * * * * * * *

  TITLE IV--ASSESSING OPTIONS FOR SUCCESSOR LAND REMOTE SENSING SYSTEM

SEC. 401. ASSESSING OPTIONS FOR SUCCESSOR LAND REMOTE SENSING SYSTEM.

    (a) * * *
    (b) Goals.--In carrying out subsection (a), the Landsat 
Program Management shall consider the ability of each of the 
options to--
            (1) * * *
          * * * * * * *
            (3) incorporate system enhancements[, including any 
        such enhancements developed under the technology 
        demonstration program under section 303,] which may 
        potentially yield a system that is less expensive to 
        build and operate, and more responsive to data users, 
        than is the Landsat system projected to be in operation 
        through the year 2000.
          * * * * * * *

                      TITLE V--GENERAL PROVISIONS

SEC. 501. NONDISCRIMINATORY DATA AVAILABILITY.

    (a) General Rule.--Except as provided in subsection (b) of 
this section, any unenhanced data generated by the Landsat 
system or any other land remote sensing system funded and owned 
by the United States Government shall be made available to all 
users without preference, bias, or any other special 
arrangement (except on the basis of national security concerns 
pursuant to section [506] 507) regarding delivery, format, 
pricing, or technical considerations which would favor one 
customer or class of customers over another.
          * * * * * * *

SEC. 502. ARCHIVING OF DATA.

    (a) * * *
          * * * * * * *
    (c) Determination of Content of Basic Data Set.--In 
determining the initial content of, or in upgrading, the basic 
data set, the Secretary of Interior shall--
            (1) * * *
          * * * * * * *
            (7) ensure that the content of the archive is 
        developed in accordance with section [506] 507.
          * * * * * * *

SEC. 507. CONSULTATION.

    [(a) Consultation With Secretary of Defense.--The Secretary 
and the Landsat Program Management shall consult with the 
Secretary of Defense on all matters under this Act affecting 
national security. The Secretary of Defense shall be 
responsible for determining those conditions, consistent with 
this Act, necessary to meet national security concerns of the 
United States and for notifying the Secretary and the Landsat 
Program Management promptly of such conditions.
    [(b) Consultation With Secretary of State.--(1) The 
Secretary and the Landsat Program Management shall consult with 
the Secretary of State on all matters under this Act affecting 
international obligations. The Secretary of State shall be 
responsible for determining those conditions, consistent with 
this Act, necessary to meet international obligations and 
policies of the United States and for notifying promptly the 
Secretary and the Landsat Program Management of such 
conditions.
    [(2) Appropriate United States Government agencies are 
authorized and encouraged to provide remote sensing data, 
technology, and training to developing nations as a component 
of programs of international aid.]
    (a) Responsibility of the Secretary of Defense.--The 
Secretary shall consult with the Secretary of Defense on all 
matters under title II affecting national security. The 
Secretary of Defense shall be responsible for determining those 
conditions, consistent with this Act, necessary to meet 
national security concerns of the United States, and for 
notifying the Secretary promptly of such conditions. Not later 
than 180 days after the date of the enactment of the Commercial 
Space Act of 1997, the Secretary of Defense shall publish in 
Commerce Business Daily, for the purpose of soliciting 
comments, notice of all national security concerns that pertain 
to the licensing of private remote sensing space systems. Not 
later than 60 days after receiving a request from the 
Secretary, the Secretary of Defense shall notify the Secretary 
and the licensee of, and describe in detail, any specific 
national security concerns of the United States that the 
Secretary of Defense determines are an appropriate reason for 
delaying, modifying, or rejecting a license application. The 
Secretary of Defense shall concurrently recommend to the 
Secretary any conditions for a license issued under title II, 
consistent with this Act, that the Secretary of Defense 
considers necessary to secure the national security concerns of 
the United States. If no such notification has been received by 
the Secretary within such 60-day period, the Secretary shall 
deem activities proposed in the license application to be 
consistent with the protection of the national security of the 
United States.
    (b) Responsibility of the Secretary of State.--(1) The 
Secretary shall consult with the Secretary of State on all 
matters under title II affecting international obligations of 
the United States. The Secretary of State shall be responsible 
for determining those conditions, consistent with this Act, 
necessary to meet international obligations of the United 
States and for notifying the Secretary promptly of such 
conditions. Not later than 180 days after the date of the 
enactment of the Commercial Space Act of 1997, the Secretary of 
State shall publish in Commerce Business Daily, for the purpose 
of soliciting comments, notice of all international obligations 
of the United States that pertain to the licensing of private 
remote sensing space systems. Not later than 60 days after 
receiving a request from the Secretary, the Secretary of State 
shall notify the Secretary and the licensee of, and describe in 
detail, any specific international obligations of the United 
States that the Secretary of State determines are an 
appropriate reason for delaying, modifying, or rejecting a 
license application. The Secretary of State shall concurrently 
recommend to the Secretary any conditions for a license issued 
under title II, consistent with this Act, that the Secretary of 
State considers necessary to secure the international 
obligations of the United States. If no such notification has 
been received by the Secretary within such 60-day period, the 
Secretary shall deem activities proposed in the license 
application to be consistent with the international obligations 
of the United States.
    (2) Appropriate United States Government agencies are 
authorized and encouraged to provide to developing nations, as 
a component of international aid, resources for purchasing 
remote sensing data, training, and analysis from commercial 
providers.
          * * * * * * *
    (d) Reimbursements.--If, as a result of technical 
modifications imposed on a licensee under title II on the basis 
of national security concerns, the Secretary, in consultation 
with the Secretary of Defense or with other Federal agencies, 
determines that additional costs will be incurred by the 
licensee, or that past development costs (including the cost of 
capital) will not be recovered by the licensee, the [Secretary 
may require] Secretary shall, where appropriate, require the 
agency or agencies requesting such technical modifications to 
reimburse the licensee for such additional or development 
costs, but not for anticipated profits. Reimbursements may 
cover costs associated with required changes in system 
performance, but not costs ordinarily associated with doing 
business abroad.
          * * * * * * *
                              ----------                              


                  LAUNCH SERVICES PURCHASE ACT OF 1990

                   TITLE II--LAUNCH SERVICES PURCHASE

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Launch Services Purchase 
Act of 1990''.

[SEC. 202. FINDINGS.

    [The Congress finds that--
            [(1) the United States commercial launch industry 
        is technically capable of providing reliable and cost 
        efficient access to space and is an essential component 
        of national efforts to assure access to space for 
        Government and commercial users;
            [(2) the Federal Government should encourage, 
        facilitate, and promote the United States commercial 
        launch industry, including the development and 
        enhancement of commercial launch facilities, in order 
        to ensure United States economic preeminence in space;
            [(3) the interests of the United States will be 
        served if the commercial launch industry is competitive 
        in the international marketplace;
            [(4) commercial vehicles are effective means to 
        challenge foreign competition;
            [(5) the use by the Federal Government of 
        performance specifically in lieu of detailed 
        specifications relating to vehicle design, 
        construction, and operation will facilitate the 
        efficient operation of the United States commercial 
        launch industry;
            [(6) the procurement of commercial launch services 
        in a commercially reasonable manner permits a reduced 
        level of Federal Government regulation and oversight 
        and economies of scale which may result in significant 
        cost savings to the commercial launch industry and to 
        the United States.
            [(7) it is the general policy of the Federal 
        Government to purchase needed goods and services, 
        including launch services, from the private sector to 
        the fullest extent feasible; and
            [(8) predictable access to National Aeronautics and 
        Space Administration launch markets would encourage 
        continuing United States private sector investment in 
        space and related activities.]

SEC. 203. DEFINITIONS.

    For the purposes of this title--
            [(1) the term ``commercial provider'' means any 
        person providing launch services, but does not include 
        the Federal Government;
            [(2) the term ``launch services'' means activities 
        involved in the preparation of a launch vehicle and its 
        payload for space transport and the conduct of 
        transporting a payload;]
            [(3)] (1) the term ``launch vehicle'' means any 
        vehicle constructed for the purpose of operating in, or 
        placing a payload in, outer space; and
            [(4)] (2) the term ``payload'' means an object 
        which a person undertakes to place in outer space by 
        means of a launch vehicle, and includes subcomponents 
        of the launch vehicle specifically designed or adapted 
        for that object.

[SEC. 204. REQUIREMENT TO PROCURE COMMERCIAL LAUNCH SERVICES.

    [(a) In General.--Except as otherwise provided in this 
section, the National Aeronautics and Space Administration 
shall purchase launch services for its primary payloads from 
commercial providers whenever such services are required in the 
course of its activities.
    [(b) Exceptions.--The National Aeronautics and Space 
Administration shall not be required to purchase launch 
services as provided in subsection (a) if, on a case by case 
basis the Administrator of the National Aeronautics and Space 
Administration determines that--
            [(1) the payload requires the unique capabilities 
        of the space shuttle;
            [(2) cost effective commercial launch services to 
        meet specific mission requirements are not reasonably 
        available and would not be available when required;
            [(3) the use of commercial launch services poses an 
        unacceptable risk of loss of a unique scientific 
        opportunity; or
            [(4) the payload serves national security or 
        foreign policy purposes.
Upon any such determination, the Administrator shall, within 30 
days, notify in writing the Committee on Science, Space, and 
Technology of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate of the 
determination and its rationale.
    [(c) National Aeronautics and Space Administration Launch 
Vehicles.--Launch vehicles shall be acquired or owned by the 
National Aeronautics and Space Administration only--
            [(1) as required under circumstances described in 
        subsection (b); or
            [(2) by the National Aeronautics and Space 
        Administration for conducting research and development 
        on, and testing of, launch technology.
    [(d) Phase-In Period.--Subsections (a) and (c) shall not 
apply to launch services and launch vehicles purchased by the 
National Aeronautics and Space Administration before the date 
of enactment of this Act.
    [(e) Historical Purposes.--This title shall not be 
interpreted to prohibit the National Aeronautics and Space 
Administration from acquiring, owning, or maintaining launch 
vehicles solely for historical display purposes.

[SEC. 205. PURCHASE OF LAUNCH SERVICES.

    [(a) Full and Open Competition.--(1) Contracts to provide 
launch services to the National Aeronautics and Space 
Administration under section 204 shall be awarded on the basis 
of full, fair, and open competition, consistent with section 
2304 of title 10, United States Code, and section 311 of the 
National Aeronautics and Space Act of 1958.
    [(2) The National Aeronautics and Space Administration 
shall limit its requirements for submission of cost or pricing 
data in support of a bid or proposal to that data which is 
reasonably required to protect the interests of the United 
States.
    [(b) Specification Systems.--Reasonable performance 
specifications, not detailed Government design or construction 
specifications, shall be used to the maximum extent feasible to 
define requirements for a commercial provider bidding to 
provide launch services. This subsection shall not preclude the 
National Aeronautics and Space Administration from requiring 
compliance with applicable safety standards.]

SEC. 206. OTHER ACTIVITIES OF THE NATIONAL AERONAUTICS AND SPACE 
                    ADMINISTRATION.

    [(a) Commercial Payloads on the Space Shuttle.--] 
Commercial payloads may not be accepted for launch as primary 
payloads on the space shuttle unless the Administrator of the 
National Aeronautics and Space Administration determines that--
            (1) the payload requires the unique capabilities of 
        the space shuttle; or
            (2) launching of the payload on the space shuttle 
        is important for either national security or foreign 
        policy purposes.
    [(b) Report.--By March 15, 1991, the Administrator, in 
consultation with the Office of Federal Procurement Policy, 
shall submit to the Committee on Science, Space, and Technology 
of the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report outlining 
the minimal requirements for documentation and other 
administrative data needed to procure launch services in a 
commercially reasonable manner, including--
            [(1) the need for data to integrate a payload with 
        a launch vehicle;
            [(2) the need for data to carry out mission-
        specific modifications to the launch vehicle;
            [(3) the need for notification to the National 
        Aeronautics and Space Administration of changes, 
        delays, or difficulties in the construction or 
        preparation of a launch vehicle that may affect the 
        delivery of its payload to its destination at the time 
        and under the conditions provided for under the 
        contract between the United States and its contractors;
            [(4) the need for data to protect public health and 
        safety; and
            [(5) the need for cost or pricing data for the 
        fulfillment of a contract.]

                    XVII. Committee Recommendations

    On June 18, 1997, a quorum being present, the Committee 
favorably reported the Commercial Space Act, as amended, by a 
voice vote, and recommends its enactment.
               XVIII. Proceedings of Subcommittee Markup



   SUBCOMMITTEE MARKUP OF H.R. 1702--THE COMMERCIAL SPACE ACT OF 1997

                              ----------                              


                        THURSDAY, JUNE 12, 1997

             U.S. House of Representatives,
                              Committee on Science,
                     Subcommittee on Space and Aeronautics,
                                                    Washington, DC.
    The Subcommittee convened at 10:08 a.m. in room 2318 of the 
Rayburn House Office Building, Hon. Dana Rohrabacher, Chairman 
of the Subcommittee, presiding.
    Members present: Representatives Rohrabacher, Cramer, 
Bartlett, Davis, Sensenbrenner, Hastings, Weldon (FL), Luther, 
Capps, Cook, Calvert, Salmon, Brady, Nethercutt, Jr., Hall, 
Luther, Lofgren, Lampson and Gordon.
    Staff present: Bill Buckey, Eric Sterner and Rich Stombres.
     Chairman Rohrabacher. Good morning. Pursuant to notice, 
the Subcommittee on Space and Aeronautics is meeting today to 
consider H.R. 1702, the Commercial Space Act of 1997.
    Because the House is in session, and we may have to vote, I 
ask for unanimous consent for the authority to recess at any 
time. Thank you very much.
    I am pleased today to bring before the Subcommittee for 
legislative markup bipartisan legislation to promote U.S. 
leadership in the commercial development of the space frontier. 
H.R. 1702 is a measured and considered bill based on 
legislation passed by the House last year under suspension. I 
congratulate Chairman Sensenbrenner and Ranking Member Brown 
for bringing it forward so quickly in this session.
    To summarize the Space Commercialization Act of 1997, it 
does three things:
    First, it promotes new commercial space opportunities 
relating to the International Space Station, reasonable space 
vehicles, space-based navigation and space science data 
collection.
    Second, it streamlines the regulation of the emerging 
commercial remote sensing industry which, as we learned in our 
hearings, is a potentially multi-billion dollar export industry 
for America.
    Finally, it requires the Federal Government to purchase 
commercial space transportation services wherever possible 
instead of building and operating launch vehicles itself.
    Today we begin to move this bill forward toward what I hope 
will be a Presidential signature by the end of this calendar 
year. That is an aggressive schedule, but I believe if we work 
closely with our Senate colleagues and the Administration we 
can achieve it.
    Now I would recognize Mr. Cramer.
    Chairman Sensenbrenner, would you like to say some words 
first?
    Chairman Sensenbrenner. Mr. Chairman, you have done a good 
job and I'm watching.
    Chairman Rohrabacher. Thank you very much, Mr. Chairman.
    Mr. Cramer.
    Mr. Cramer. Thank you, Mr. Chairman. I'm glad we can move 
on with this markup. I thought after yesterday we might not get 
this opportunity. This is a good bill, H.R. 1702, the 
Commercial Space Act of 1997. I've appreciated the bipartisan 
approach to this bill in the hearings that we've been able to 
have. I thought they were very, very good hearings.
    I've co-sponsored H.R. 1702 which continues Congress' long-
standing tradition of promoting the development of a healthy 
and robust commercial space sector. The bipartisan tradition 
has been reflected in the passage of a series of important 
legislative initiatives in the past, including the Land Remote 
Sensing Commercialization Act of 1984, the Land Remote Sensing 
Policy Act of 1992, the Commercial Space Launch Act, the 
Commercial Space Launch Act Amendments of 1988 and the Launch 
Services Purchase Act of 1990.
    I think those Acts have played an important role in 
fostering the growth of the commercial remote sensing and 
commercial launch service industries and have certainly 
benefited the Nation's economy as a whole.
    I think we all agree that space is not just a frontier for 
research and exploration, it is also a frontier for commercial 
activity and we need only look at the explosive growth of the 
satellite communications industry of the past 3 decades to 
realize the truth of that statement. I believe that we may be 
on the verge of a similar explosion of growth in the commercial 
remote sensing industry as well as commercial applications of 
the GPS System.
    H.R. 1702 is not a perfect bill. Indeed, we will offer 
several amendments, and I think my colleague, Mr. Hastings from 
Florida will offer an amendment that will improve the bill. 
Those amendments are intended to ensure that the Nation's 
legitimate national security concerns and international 
obligations are protected as we work to promote the growth of 
commercial remote sensing. So I look forward to this markup, 
Mr. Chairman.
    [The prepared statement of Mr. Cramer follows:]

                           OPENING STATEMENT
                                   by
                   HON. ROBERT E. ``BUD'' CRAMER, JR.
                             June 11, 1997
    Good afternoon. As the Chairman has indicated, we are here this 
afternoon to mark up H.R. 1702, the Commercial Space Act of 1997. H.R. 
1702, which I have cosponsored, continues Congress's long-standing 
tradition of promoting the development of a healthy and robust 
commercial space sector.
    This bipartisan tradition has been reflected in the passage of a 
series of important legislative initiatives, including the

      --``Land Remote Sensing Commercialization Act of 1984,''
      --``Land Remote Sensing Policy Act of 1992,''
      --``Commercial Space Launch Act,''
      --``Commercial Space Launch Act Amendments of 1988,'' and the
      --``Launch Services Purchase Act of 1990.''

    These Acts have played an important role in fostering the growth of 
the commercial remote sensing and commercial launch services 
industries, and have certainly benefited the Nation's economy as a 
whole.
    I think that we can all agree that space is not just a frontier for 
research and exploration--it is also a frontier for commercial 
activity. We need only look at the explosive growth of the satellite 
communications industry over the past 3 decades to realize the truth of 
that statement. I believe that we may be on the verge of a similar 
explosion of growth in the commercial remote sensing industry, as well 
as in commercial applications of the Global Positioning System.
    It is clear from all of these examples that the Federal 
Government's investments in space technology and systems have provided 
the private sector with impressive capabilities that can be exploited 
to benefit both our citizens and the economy as a whole. It is now the 
private sector's challenge to make commercial space activities earn 
profits--government cannot and should not guarantee success.
    However, the Federal Government can provide a stable and supportive 
policy environment for commercial space activities. That has been the 
goal of previous commercial space legislation, and I believe that is 
also the goal of H.R. 1702.
    Of course, H.R. 1702 is not a perfect bill. Indeed, Chairman 
Rohrabacher and I will offer several amendments today that we believe 
will improve the bill. They are intended to ensure that the Nation's 
legitimate national security concerns and international obligations are 
protected as we work to promote the growth of commercial remote 
sensing. And we intend to work with the Administration as it considers 
the bill to ensure that H.R. 1702 is a constructive legislative step 
forward in our mutual effort to ensure a vital and healthy commercial 
space sector.
    Mr. Chairman, I look forward to a productive markup.
    Thank you.

    Chairman Rohrabacher. Thank you very much, Mr. Cramer.
    The Chair asks other members if they would be willing to 
submit their opening statements for the record so we can 
proceed directly with amendments.
    Without objection, all other statements will be included in 
the record at this point.
    I ask for unanimous consent that H.R. 1702 be considered as 
read and open to amendment at any point.
    Without objection, so ordered.
    [A section-by-section analysis of H.R. 1702 and the text of 
the bill follow:]


    Chairman Rohrabacher. I further ask the members to proceed 
with the amendments in the order that they are printed on the 
roster.
    The first amendment on the roster is the bipartisan 
Managers' Amendment offered by myself and Mr. Cramer. The Clerk 
will report the amendment.
    Mr. Stombres. Amendment offered by Mr. Rohrabacher and Mr. 
Cramer. Page 25, line 18----
    Chairman Rohrabacher. Without objection, the amendment will 
be considered as read.


    Chairman Rohrabacher. I recognize myself for 5 minutes. 
This amendment was drafted by the Subcommittee's bipartisan 
staff after discussion with the White House and various 
Executive Branch departments and agencies. It reflects some of 
their input and response to some of their requests for changes. 
We are making these changes to demonstrate our willingness to 
work in good faith with the Executive Branch in fashioning and 
passing this legislation.
    Now it will be their turn to demonstrate good faith and 
work with us to ensure that the additional changes that the 
State Department and the Defense Department are asking to make 
to the bill are both necessary and consistent with the Congress 
and the White House shared commitments to see commercial space 
emerge as a new source of jobs and economic growth for this 
country.
    As these discussions with the White House and the Executive 
Branch continue, we may need to amend the bill again during the 
Full Committee markup. In order to save time at this point I 
would like to place in the record a brief description of the 
amendment which has been distributed to the members of the 
Subcommittee.
    Without objection, that is put in the record.
    [The description referred to follows:]

 Mr. Rohrabacher's Statement for the Record on the Managers' Amendment 
        at Space & Aeronautics Subcommittee Markup of H.R. 1702
    This amendment makes four minor changes in the bill. First, we're 
adding a new finding regarding remote sensing. This finding reaffirms 
that Congress expects the national security and the international 
obligations of the United States to be protected as the commercial 
remote sensing industry emerges.
    Second, we're making a technical change to the government's 
authority to seek to modify or terminate a commercial remote sensing 
license. Current law may be interpreted to require the Secretary of 
Commerce to seek to both modify a license and terminate operations at 
the same time, which makes no sense. The original bill changed this so 
that the Secretary can do one or the other, and does not have to do 
both. The amendment ensures that the Secretary can do both, if he 
chooses.
    Third, current law allows the Department of Commerce to impose 
administrative penalties of $10,000 per day on companies it believes 
are failing to comply with the terms of their license.
    The bill removes this authority to unilaterally impose such 
penalties by requiring the Department of Commerce to go to court and 
prove noncompliance before penalties can be imposed.
    Both the State and Commerce Departments objected to this change. We 
have agreed to amend the bill and preserve the Commerce Department's 
ability to impose administrative fees.
    Finally, on page 32, we're adding an exception to the bill's 
prohibition on government duplication of private sector activities. 
Under the bill, the government may only duplicate private sector 
activities if doing so would result in significant cost savings. Under 
the amendment, the government will also be able to duplicate private 
sector activity if it is necessary for reasons of national security or 
international obligations. 

    Chairman Rohrabacher. I now recognize Mr. Cramer to speak 
on the amendment.
    Mr. Cramer. As I said, I would like to join the Chairman in 
speaking in support of our proposed amendments. These are a 
relatively modest set of amendments. They clarify, as I said, 
that H.R. 1702 is intended to promote a healthy and vigorous 
remote sensing industry while at the same time making sure that 
national security concerns and international obligations are 
protected.
    As Chairman Rohrabacher has indicated, we are continuing to 
discuss a number of the provisions of H.R. 1702 with the 
Administration. The discussions have been constructive and I 
believe that they will ultimately result in a bill that will be 
supported by both the Administration and the Congress. These 
amendments are a first step and I urge my colleagues to support 
them.
    Chairman Rohrabacher. Is there any further discussion?
    Mr. Sensenbrenner?
    Chairman Sensenbrenner. No.
    Chairman Rohrabacher. If there is no further discussion 
then this vote will occur on the amendment.
    All in favor of the Managers' Amendment say aye.
    [Chorus of ayes]
    Chairman Rohrabacher. All opposed?
    [No response]
    The ayes have it and the amendment is agreed to.
    Mr. Hastings. Mr. Chairman, I have an amendment at the 
desk.
    Chairman Rohrabacher. Judge Hastings, your Honor, you have 
an amendment at the desk. Are you ready to proceed with your 
amendment?
    Mr. Hastings. I am, sir.
    Chairman Rohrabacher. You may proceed.
    The Clerk will report the amendment.
    Mr. Stombres. Amendment offered by Mr. Hastings.
    Mr. Hastings. I ask unanimous consent that the amendment be 
accepted as read, Mr. Chairman.
    Chairman Rohrabacher. Without objection the amendment will 
be considered as read and the gentleman is recognized for 5 
minutes to offer his amendment.
    [The prepared statement of Mr. Hastings and the text of the 
amendment follow:]

 Statement of Congressman Alcee L. Hastings in support of the Hastings 
                         Amendment to H.R. 1702
                             June 11, 1997
    Mr. Chairman,
    I offer this amendment in conjunction with my colleague, Mr. Wexler 
of Florida, to support NASA's 11 Commercial Space Centers. The Centers 
involve a collaboration among academia, industry and government. 
Managed by NASA's Office of Advanced Concepts and Technology, the 
Centers are co-located at and operated by a number of universities and 
research institutes across the country, including Alabama, Wisconsin, 
Texas and Florida. Each dollar from NASA distributed to the centers is 
leveraged by industry and academia, generating two to three times the 
initial investment.
    Until 1996, all the Commercial Space Centers were managed under one 
roof at NASA headquarters. But last year, six of the Centers were 
detached and now are managed by field centers (Stennis Space Center and 
Lewis Research Center). This includes the Space Communications 
Technology Center in Boca Raton, Florida. When NASA reorganized the six 
Centers, it did not continue to provide funding from its headquarter's 
budget. Consequently, the six Centers had to compete for resources with 
the field centers. And, with their budgets in decline, many of the 
Centers were getting the short end of the stick.
    The Centers should be funded directly from NASA headquarters, and 
not be farmed out to field offices, where they are subject to 
cannibalism. Let's fix this problem, Mr. Chairman. The amendment 
offered would do just that by allowing NASA headquarters to control the 
funding of the Centers.


    Mr. Hastings. I thank the Chair, and more specifically 
thank you and the Ranking Member and the Chairman of the Full 
Committee, Mr. Sensenbrenner for the opportunity to come 
forward with this amendment, and to compliment the Full 
Chairman and you, Mr. Chairman, for the bipartisan spirit that 
has been demonstrated throughout this Congressional session.
    I offer this amendment in conjunction with my colleague, 
Robert Wexler of Florida to support NASA's 11 commercial space 
centers. The centers involve a collaboration among academia, 
industry and government managed by NASA's Office of Advanced 
Concepts and Technology. The centers are co-located and 
operated by a number of universities and research institutes 
across the country including Alabama, which gets our Ranking 
Member's juices flowing, Wisconsin, Texas, and I think 
everybody that ever was on a committee is on this one from 
Texas, and Florida. Each dollar from NASA distributed to the 
centers is leveraged by industry and academia generating two to 
three times the initial investment.
    As we all know, Mr. Chairman, until 1996 all the commercial 
space centers were managed under one roof at NASA Headquarters, 
but last year six of the centers were detached and now are 
managed by field centers, Stennis Space Center and Lewis 
Research Center. This includes the Space Communications 
Technology Center in Boca Raton, Florida, which is situated in 
the district that I'm privileged to serve. When NASA recognized 
the six centers it did not continue to provide funding from its 
Headquarters budget. Consequently the six centers had to 
compete for resources with the field centers, and with their 
budgets in decline many of the centers were getting the short 
end of the stick.
    The centers, in my view, Mr. Chairman, should be funded 
directly from NASA Headquarters and not be farmed out to field 
offices where they are subject to cannibalism. Let's fix this 
problem. I believe this amendment moves us in that direction, 
and I ask my colleagues to support it and allow NASA 
Headquarters to control the funding of the centers.
    With that I yield back any time I may have, Mr. Chairman.
    Chairman Rohrabacher. Thank you very much, Mr. Hastings.
    Mr. Weldon.
    Mr. Weldon of Florida. Thank you, Mr. Chairman. I want to 
express my support for Mr. Hastings' amendment. I worked with 
Mr. Wexler on this problem with funding the commercial space 
center at Florida Atlantic University and it reflects an 
overall problem that NASA has with managing commercial space 
efforts.
    This amendment would simply require NASA to manage and fund 
commercial space efforts from Headquarters rather than leaving 
it up to individual field centers which have their own unique 
regional budget and political struggles. When a field center is 
responsible for a commercial space efforts hundreds of miles 
away there is just not the same incentive to ensure its 
success.
    I commend my colleague from Florida for this forward-
thinking amendment and I ask the Committee to support it.
    Thank you, Mr. Chairman.
    Chairman Rohrabacher. Thank you.
    Mr. Cramer.
    Mr. Cramer. Mr. Chairman, I would like to speak in support 
of Mr. Hastings' amendment. I could say a lot of things about 
the centers for commercial development, all positive, but Mr. 
Hastings has raised some concerns about the way that program 
has been administered and has proposed what amounts to a very 
reasonable solution for those problems, and it's important that 
we do solve those problems.
    Thus, I will support the amendment and will work with Mr. 
Hastings, the Chairman and NASA to ensure that we maintain a 
healthy and efficient commercial program.
    Chairman Rohrabacher. Thank you very much.
    Does anyone else want to speak?
    [No response.]
    Seeing none, the Chairman accepts this amendment by the 
gentleman from Florida and thanks him for his strong support of 
NASA's commercial center program.
    Mr. Hastings. Thank you, Mr. Chairman.
    Chairman Rohrabacher. I think your amendment will really 
make a great contribution. This is the type of fine-tuning that 
we need to make sure the system is working and the taxpayers' 
dollars are being spent wisely.
    I believe that the amendment will preserve a consistent and 
fair process at NASA Headquarters for awarding and renewal of 
funding for commercial space centers based on peer review of 
merit and performance. It is not the Congress' job to pick 
centers to be funded or cut, but it is our job to ensure that 
the centers are judged on their merits using a fair and 
consistent set of standards. It appears for now that 
Headquarters needs to determine and apply those standards so 
that commercial space centers don't get lost in the process of 
decentralization.
    The vote now occurs on the amendment by Mr. Hastings.
    All in favor say aye.
    [Chorus of ayes]
    Chairman Rohrabacher. Opposed?
    [No response]
    The ayes have it and the amendment is agreed to.
    Are there any other amendments?
    [No response]
    There are none.
    If there are no further amendments the question is on H.R. 
1702 as amended.
    All those in favor will say aye.
    [Chorus of ayes]
    All opposed say nay.
    [No response]
    In the opinion of the Chair the ayes have it.
    The Chair recognizes the gentleman from Alabama for a 
motion.
    Mr. Cramer. Mr. Chairman, I move that the Subcommittee 
report the bill, H.R. 1702, the Commercial Space Act of 1997 as 
amended.
    Furthermore, I move to instruct the staff to prepare the 
Subcommittee report, to make technical and conforming 
amendments and that the Chairman take all necessary steps to 
bring the bill before the Full Committee for consideration.
    Chairman Rohrabacher. The Subcommittee has heard the 
motion.
    Those in favor will say aye.
    [Chorus of ayes]
    Chairman Rohrabacher. Those opposed will say no.
    [No response]
    The motion has been agreed to and the bill is reported to 
the Full Committee.
    The Chair would like to thank all members for their 
participation today. The Full Committee markup will be held 
next Wednesday on this legislation.
    Let me note before we break that this piece of legislation 
is something that exemplifies the kind of cooperation we can 
have, and this Chairman is open to any ideas that you have for 
legislation. We passed a 2-year budget authorization and that 
gives us time to do some oversight and gives us time to put 
together some legislation like Judge Hastings has done here 
that will help fine-tune the system and make it a bit better. 
So please feel free to contact the Ranking Member or myself and 
we'll try to accommodate you. If there is a disagreement we'll 
have an honest disagreement, but you'll get your hearing and 
your legislative ideas will be considered by the this 
Subcommittee.
    So thank you all very much.
    Without objection the Subcommittee is now adjourned.
    [The Subcommittee adjourned at 10:24 a.m., subject to the 
call of the Chair.]
                IX. Proceedings of Full Committee Markup



  FULL COMMITTEE MARKUP OF H.R. 1702--THE COMMERCIAL SPACE ACT OF 1997

                              ----------                              


                        WEDNESDAY, JUNE 18, 1997

             U.S. House of Representatives,
                              Committee on Science,
                                                    Washington, DC.
    The Committee convened at 1:12 p.m. in room 2318 of the 
Rayburn House Office Building, Hon. F. James Sensenbrenner, 
Jr., Chairman of the Committee, presiding.
    Members present: Chairman Sensenbrenner and Representatives 
Brown, Hall, Cramer, Rohrabacher, Weldon (FL), Luther, Capps, 
Bartlett, Calvert, Weldon (PA), Boehlert, Salmon, Brady, 
Nethercutt, Jr., Hooley, Tauscher, Lampson, Stabenow, Jackson-
Lee, Doyle, Lofgren, Rivers, Johnson, McHale, Roemer, Gordon, 
Morella, Ehlers, Gutknecht, Gordon, Hooley, and Etheridge.
    Staff present: Bill Buckey, Eric Sterner and Patricia 
Schwartz.
     Chairman Sensenbrenner. The Committee will be in order. 
The Chair notes the presence of a working quorum. Pursuant to 
notice, the members of the Committee on Science will address 
the following issues: the Democratic Subcommittee assignments; 
and consideration of H.R. 1702, the Commercial Space Act of 
1997.
    Before we proceed on the commercial space bill, the Chair 
recognizes the gentleman from California, Mr. Brown, for a 
motion regarding Subcommittee assignments.
    Mr. Brown of California. Thank you very much, Mr. Chairman. 
As the members may know, Mr. Doggett has left the Committee on 
our side for greener pastures leaving two Subcommittee 
vacancies. I'm very pleased that Ellen Tauscher has been 
appointed to the Committee further swelling the ranks of the 
California members. Ellen is from the 10th District of 
California which includes the Livermore National Laboratory. 
She will be joining the Technology Subcommittee, and Mr. 
Hastings will be filling the vacancy on the Energy and 
Environment Subcommittee if my motion to appoint them to those 
two Committees is approved.
    Mr. Chairman, by direction of the Democratic Caucus of the 
Committee on Science, I move the appointment of Hon. Alcee 
Hastings to the Subcommittee on Energy and Environment, and the 
appointment of Hon. Ellen Tauscher to the Subcommittee on 
Technology.
    Chairman Sensenbrenner. Without objection, the previous 
question is ordered, and the motion of the gentleman from 
California is agreed to.
    Next on the agenda is consideration of H.R. 1702, the 
Commercial Space Act of 1997, which the Clerk will report by 
title.
    Ms. Schwartz. H.R. 1702 as reported by the House 
Subcommittee on Space. Short title, this Act may be cited as 
the Commercial Space Act of 1997.
    Chairman Sensenbrenner. Without objection, the first 
reading of the bill is dispensed with, and the Chair recognizes 
himself for 5 minutes for an opening statement.
    Normally when we talk about legislation at a markup the 
Chair summarizes the elements of the bill and expresses his 
fervent wish that the President will sign it at some future 
date. While I won't disappoint you in this area I'm going to 
focus instead on politics because that's the hard part. Let's 
begin at the top since the national discussion of politics 
often begins with the White House.
    Since he has come to office the President has released 
several policies to promote commercial space development, space 
transportation, remote sensing and space-based navigation. 
These are pretty good policies and could help ensure American 
companies lead in the commercialization of space and that the 
jobs and benefits of space commercialization come to the United 
States and don't go overseas.
    In Congress we generally support the President's policies. 
Last year we passed H.S. 3936, the Space Commercialization 
Promotion Act of 1996 that codifies some aspects of the 
President's policies in law. We had representatives from the 
White House and the Executive Branch testify before the Space 
and Aeronautics Subcommittee. They asked for some modest 
changes to the bill which we made before we passed it. There 
was one exception regarding lifting post-employment 
restrictions on NASA's Space Shuttle workforce. We wanted to 
lift them and the White House didn't. We resolved the White 
House's problem in this year's bill.
    We reintroduced the bill with a few modest changes as H.R. 
1702, the Commercial Space Act of 1997. We have five original 
bipartisan co-sponsors, and I'm pleased to report that seven 
Members from both sides of the aisle have joined us as co-
sponsors since the Subcommittee markup. I hope a few more 
Members will get on board before we file the legislative 
report.
    So where do the politics come in if we're all in agreement? 
Politics come in when you have to manage an interagency process 
and coordinate a flurry of paper from departments and agencies 
worried about the effect that the bill will have on their 
prerogatives. We understand that departments play different 
roles in moving our commercial space interests forward. So the 
Committee is trying to work with the Executive Branch to 
address these concerns that appear to be substantive and to 
clarify issues that may lead to different interpretations of 
intent.
    We made a few changes to the bill in last week's 
Subcommittee markup as a demonstration of our commitment to 
working with the Administration. For example, we removed the 
bill's requirement that the Secretary of Commerce go to court 
before imposing penalties on licensed remote sensing companies. 
Both the State and Commerce Departments indicated that this 
authority helps them ensure that licensees operate their 
satellites consistent with U.S. national security interests and 
international obligations.
    We made additional changes to satisfy various departments 
and agencies and we will make more today to address concerns 
raised by NASA and the Departments of State, Defense, Commerce 
and Transportation. We have not done everything they asked us 
to do in the manner they asked, but we have proven that this 
Committee will work constructively with the Administration to 
address the serious and substantive concerns that it has.
    That being said, I'm opposed to making changes simply to 
accommodate bureaucratic turf battles. In general the 
Administration and particularly the White House has tried to 
manage this process in a positive way, and I appreciate its 
efforts. We have taken several steps in the Administration's 
direction. From the discussions we have had with the White 
House and the Executive Departments the Administration has 
identified two significant remaining concerns.
    First, the Administration objects to the bill's 
requirements for the Departments of State and Defense to 
publish lists of national security concerns and international 
obligations they will use to determine if a license is 
consistent with our national security and international 
obligations. Our intent here is to move the government in the 
direction of telling the commercial sector what standards the 
government will use when it judges them. That information also 
helps companies avoid wasting time on activities that the 
government might object to because they know in advance what 
issues are important, and that's only fair.
    Second, in existing law there are multiple references to 
the need to ensure that licensed remote sensing operations are 
consistent with national security concerns and international 
obligations. There is one reference to international 
obligations and policies and this bill removes that reference. 
I am prepared to work toward a compromise on both these issues 
in exchange for a White House commitment of active support for 
the bill.
    Let me say that again so that everyone is perfectly clear 
about where I stand. I am prepared to resolve the 
Administration's two main problems with this bill in the 
interests of bipartisanship and the spirit of cooperation that 
I think the White House and the Committee are working toward. 
Unfortunately, the White House has instructed the Committee 
that no unified statement of Administration position is 
possible until after the Committee passes this legislation. I 
regret that a coordination of the various agencies concerned is 
not possible, but that's the call that has been made from up 
the street.
    I want a commitment from the White House that if we make a 
deal the White House will back that deal and actively support 
the bill, and I will not allow this Committee, the House or the 
commercial space industry to be nickeled and dimed to death by 
departments and agencies fighting turf battles. I don't think 
the White House has any desire to see that happen either. So we 
ought to be able to work this issue out after the Committee 
does its business today.
    It is my hope that by acting to pass this bill today we 
will take another step forward in securing the President's 
support for legislation so vital to the health of our 
commercial space industry, and I recognize the gentleman from 
California, Mr. Brown for an opening statement.
    Mr. Brown of California. Thank you very much, Mr. Chairman. 
I want to express my commendation for the views that you have 
stated here. As always you are extremely forthright, and I 
happen, on the substance of the matters that you have 
discussed, to be more in agreement with you than I am with the 
Administration. However, I am taking a position here that would 
lead to getting the Administration on board, and I hope that we 
can do so and get this bill passed and signed into law.
    I am a co-sponsor of the bill, and I want to commend the 
Chairman for the priority he is giving to passing it. His 
action is in accord with the Committee's long-standing 
bipartisan commitment to the development of a healthy and 
robust commercial space sector.
    Indeed, I believe that the Committee can be proud of the 
role it has played over the past 2 decades in helping to 
promote the emergence of commercial launch services and 
commercial remote sensing and value-added services industries. 
These industries are now poised to emulate the example of the 
highly successful satellite communications industry which 
continues to enjoy explosive growth coupled with the emergence 
of exciting new services.
    Nevertheless, more needs to be done to provide a 
constructive and stable policy environment for commercial space 
ventures. H.R. 1702 can play a useful, if modest, role in 
promoting such an environment. I would note in particular the 
provision of reentry licensing authority in H.R. 1702. If the 
promise of advanced reusable launch vehicles and other reentry 
vehicles is to be realized, we will need to ensure that the 
required licensing framework is in place, and I believe this 
bill provides that framework.
    The bill is not perfect, of course. The Administration has 
raised a number of, I say here thoughtful and constructive 
concerns, but I'm not sure I want to emphasize that too much, 
about the legislation. We are continuing to work with the 
Administration to seek common ground, and I hope that we can 
address some of the most significant concerns in today's 
markup.
    I really believe that the Chairman is more in tune with 
many of the things I have said in the past when he says he is 
opposed to making changes to satisfy bureaucratic turf battles 
because I think a lot of that is involved here, but I do feel 
an obligation to help guide this bill so that it ultimately can 
get the President's signature.
    I hope that I can assist the Chairman in working to resolve 
these problems of getting a unified Administration position on 
these things and in time that they can be embodied in a joint 
amendment which we can offer at the time the bill is brought to 
the Floor. I think we are not going to be able to resolve them 
before we complete this markup, and I'm not insisting that we 
do at this point.
    Chairman Sensenbrenner. I thank the gentleman from 
California.
    Without objection, other members' opening statements will 
be inserted in the record at this point.
    [The prepared statement of Mr. Weldon follows:]

Statement of Rep. Dave Weldon on the Markup of the Commercial Space Act 
                                of 1997
    Washington, DC.----U.S. Representative Dave Weldon (R-FL) issued 
the following statement in advance of today's Science Committee markup 
of the Commercial Space Act of 1997:

      Mr. Chairman, I want to thank you for your diligence in moving 
this bill forward. Our Nation's future role in space depends a great 
deal on the ability to develop a viable commercial market in and for 
space, and H.R. 1702 marks an important step in that direction. I am 
committed to working with you as this moves forward to the House Floor, 
and I encourage our Senate colleagues to take this up as soon as 
possible. This legislation deserves bipartisan Congressional and White 
House support.
      H.R. 1702 sends an important signal to the commercial space 
community by moving the Federal Government towards increased purchase 
of launch and remote sensing services that are available commercially. 
It also instructs NASA to maximize the commercial opportunities on the 
International Space Station, which is critical to fostering a private 
sector role in the development and exploration of space.
      I will be offering an amendment today that improves the bill, one 
that ensures the potential contributions of state governments are not 
overlooked as we promote the commercial space market. Some States--such 
as California, Virginia, Florida, Texas, Alabama, New Mexico and 
others--are investing state funds in space-related facilities and 
activities.
      My amendment simply states that all of the studies and reports 
that are ordered under Section 101 of H.R. 1702 must consider the 
potential role of state governments as ``brokers'' of commercial space 
work between NASA and the private sector. State governments can provide 
additional sources of capital and expertise that could be important 
resources for commercial ventures, and my amendment would simply ensure 
that they are not overlooked as Space Station commercialization 
planning takes place.
      I look forward to working with my colleagues as we consider this 
bill.

    Chairman Sensenbrenner. Without objection, the bill will be 
considered as read and open for amendment at any point.
    Hearing none, so ordered.
    [A section-by-section analysis of H.R. 1702 and the text of 
the bill follow:]


    Chairman Sensenbrenner. I will ask that the members proceed 
with the amendments in the order on the roster.
    Amendment No. 1 is an en bloc amendment which I have which 
the Clerk will report.
    Ms. Schwartz. Amendments to H.R. 1702 offered by Mr. 
Sensenbrenner.
    Chairman Sensenbrenner. Without objection, the amendments 
will be considered en bloc and considered as read.
    Hearing none, so ordered.
    [An explanation of the en bloc amendment and the text of 
the amendment follow:]


    Chairman Sensenbrenner. The members of the Committee have 
in front of them a detailed explanation of the en bloc 
amendment. This amendment represents an attempt to deal with 
many of the concerns that have been raised by NASA and the 
Departments of Commerce, Defense, State and Transportation.
    We have also worked to resolve issues that have been raised 
by Democrats and Republicans on this Committee. The amendment 
does not represent the end of our work on this bill. I believe 
that the Committee has made a good-faith effort to deal with 
the numerous concerns that have been raised by the 
Administration. What I want from this process is an agreement 
with the Administration on what the major concerns are, how to 
address those concerns and whether addressing the major 
concerns will result in White House support for the bill.
    The amendment makes several changes to the Commercial Space 
Launch amendments to address concerns raised by the Department 
of Transportation and industry. It also makes several changes 
to Section 201, the amendments to the Land Remote Sensing 
Policy Act of 1992 to accommodate concerns raised by the 
Administration. This amendment contains changes that were 
worked out between Republicans and Democrats on this Committee 
and the Administration and it deserves support.
    I would point out that in every member's packet there is a 
list of the 12 different items of the bill that are amended. I 
do not believe this amendment to be controversial, and yield 
back the balance of my time.
    The gentleman from California.
    Mr. Brown of California. Mr. Chairman, I join in supporting 
your en block amendments. I think they are constructive and 
provide some useful improvements to the bill. As I have 
indicated earlier, my problem is with the fact that there are 
still some unaddressed objections which I think we will 
ultimately need to address from the Administration.
    I ask unanimous consent to put into the record three 
letters from the Defense, State and Justice Departments with 
regard to their problems.
    Chairman Sensenbrenner. Without objection.
    [The letters referred to follow:]
    
    
    Mr. Brown of California. As I said, I will do my very best 
to help the Chairman resolve this matter in an appropriate way.
    Chairman Sensenbrenner. The gentleman's time has expired.
    Is there further discussion on the en bloc amendments?
    [No response]
    Hearing none, all those in favor will signify by saying 
aye.
    [Chorus of ayes]
    Chairman Sensenbrenner. Opposed, no.
    [No response]
    The ``ayes'' have it and the amendments are agreed to.
    The next amendment on the roster is by the gentleman from 
Florida, Doctor Weldon.
    Mr. Weldon of Florida. Mr. Chairman, I have an amendment at 
the desk.
    Chairman Sensenbrenner. The Clerk will report the 
amendment.
    Ms. Schwartz. Amendment to H.R. 1702 offered by Mr. Weldon 
of Florida. Page 7 after line----
    Chairman Sensenbrenner. Without objection, the amendment is 
considered as read, and the gentleman from Florida is 
recognized for 5 minutes.
    [The text of the amendment follows:]
    
    
    Mr. Weldon of Florida. Mr. Chairman, I want to thank you 
for your diligence in moving this bill forward. Our Nation's 
future role in space depends a great deal on the ability to 
develop a viable commercial market in and for space, and H.R. 
1702 makes an important step in that direction.
    I am committed to working with you as this moves forward to 
the House Floor, and I encourage our Senate colleagues to take 
this measure up as soon as possible.
    I offer an amendment today that I believe improves the 
bill. As you know, Mr. Chairman, many States are getting 
actively involved in the Space Program, and I want to ensure 
that potential contributions are not overlooked as we promote 
the commercial space market. Some States, including my on State 
of Florida are investing State funds in space-related 
facilities and activities.
    Specifically my amendment would ensure that the role of 
state governments is not ignored as NASA considers the 
commercialization of the International Space Station. It simply 
states that all of the studies and reports that are ordered 
under Section 101 of H.R. 1702 must consider the potential role 
of state governments as brokers of commercial space work 
between NASA and the private sector.
    You might wonder what this means. The State of Florida, for 
example, provided the up-front funding for a new facility to 
store solid rocket motors. The State then leased back the 
facility to the aerospace company using it, which is paying off 
the initial investment made by the State. This arrangement 
enabled the company to make a long-term commercial investment 
in partnership with the State, an investment they might not 
have been able to do otherwise.
    State governments can provide additional sources of capital 
and expertise that could be important resources for commercial 
ventures, and this amendment would simply ensure that they are 
not overlooked as Space Station commercialization planning 
takes place. This means that States like California, Virginia, 
New Mexico, Alabama, Texas, Florida and others that have active 
roles in the space program will have an opportunity to 
participate in the exciting commercial space markets of the 
future.
    I urge all of my colleagues to support this amendment.
    Chairman Sensenbrenner. The gentleman's time has expired.
    Is there further discussion on the amendment of the 
gentleman from Florida?
    [No response]
    Hearing none, all those in favor will signify by saying 
aye.
    [Chorus of ayes]
    Chairman Sensenbrenner. Opposed, no.
    [No response]
    The ``ayes'' have it and the amendment is agreed to.
    Are there further amendments to the bill?
    [No response]
    If not, all those in favor of the bill please signify by 
saying Aye.
    [Chorus of Ayes]
    Chairman Sensenbrenner. Opposed, No.
    [No response]
    The ``Ayes'' have it and the motion is agreed to.
    The Chair now recognizes the gentleman from Alabama for a 
motion to report the bill.
    Mr. Rohrabacher. Mr. Chairman.
    Chairman Sensenbrenner. For what purpose does the gentleman 
from California seek recognition?
    Mr. Rohrabacher. I ask for unanimous consent to submit a 
Department of Commerce letter on H.R. 1702 for the record.
    Chairman Sensenbrenner. Without objection.
    [The letter referred to follows:]
    
    
    Chairman Sensenbrenner. The gentleman from Alabama, Mr. 
Cramer.
    Mr. Cramer. Mr. Chairman, I move that the Committee report 
the bill, H.R. 1702, the Commercial Space Act of 1997, as 
amended.
    Furthermore, I move to instruct the staff to prepare the 
legislative report, to make technical and conforming amendments 
and that the Chairman take all the necessary steps to bring the 
bill before the House for consideration.
    Chairman Sensenbrenner. The Chair notes the presence of a 
reporting quorum. The question is on the motion of the 
gentleman from Alabama.
    All those in favor will signify by saying aye.
    [Chorus of ayes]
    Chairman Sensenbrenner. Opposed, no.
    [No response]
    The ``ayes'' have it and the bill is reported.
    Without objection, members will have 2 subsequent calendar 
days in which to submit supplemental, Minority, or additional 
views on this measure pursuant to Clause 1 of Rule 20 of the 
Rules of the House of Representatives.
    The Committee authorizes the Chairman to offer such motions 
as may be necessary in the House to go to conference with the 
Senate on H.R. 1702 or a similar Senate bill.
    There being no further business before the Committee, the 
Chair declares the Committee adjourned and thanks the members 
for their cooperation.
    [The Committee adjourned at 1:33 p.m, subject to the call 
of the Chair.]