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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-65
_______________________________________________________________________


 
      CIVILIAN SPACE AUTHORIZATION ACT, FISCAL YEARS 1998 AND 1999

_______________________________________________________________________


 April 21, 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

                             together with

              MINORITY, SUPPLEMENTAL AND ADDITIONAL VIEWS

                        [To accompany H.R. 1275]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science, to whom was referred the bill 
(H.R. 1275) to authorize appropriations for the National 
Aeronautics and Space Administration for fiscal years 1998 and 
1999, and for other purposes, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.


                            C O N T E N T S

                                                                   Page
   I. Amendment.......................................................2
  II. Background and Need for Legislation............................22
 III. Summary of Hearings............................................23
  IV. Summary of Major Provisions of the Bill........................29
   V. Section-By-Section Analysis and Committee Views................31
  VI. Committee Cost Estimate........................................70
 VII. Congressional Budget Office Cost Estimate......................71
VIII. Compliance with Public Law 104-4.................................
  IX. Committee Oversight Findings and Recommendations...............78
   X. Oversight Findings and Recommendations by the Committee on 
      Government Reform and Oversight................................78
  XI. Constitutional Authority Statement.............................78
 XII. Federal Advisory Committee Statement...........................78
XIII. Congressional Accountability Act...............................78
 XIV. Changes in Existing Law Made by the Bill, as Reported..........78
  XV. Committee Recommendations......................................93
 XVI. Additional and Minority Views..................................95
XVII. Results of Roll Call Vote Taken at Full Committee Markup on April 
      16, 1997.......................................................98

                              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 ``Civilian Space 
Authorization Act, Fiscal Years 1998 and 1999''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.

                TITLE I--AUTHORIZATION OF APPROPRIATIONS

                       Subtitle A--Authorizations

Sec. 101. Human space flight.
Sec. 102. Science, aeronautics, and technology.
Sec. 103. Mission support.
Sec. 104. Inspector General.
Sec. 105. Total authorization.
Sec. 106. Office of Commercial Space Transportation authorization.
Sec. 107. Office of Space Commerce.
Sec. 108. United States-Mexico Foundation for Science.

     Subtitle B--Restructuring the National Aeronautics and Space 
                             Administration

Sec. 111. Findings.
Sec. 112. Restructuring reports.

             Subtitle C--Limitations and Special Authority

Sec. 121. Use of funds for construction.
Sec. 122. Availability of appropriated amounts.
Sec. 123. Reprogramming for construction of facilities.
Sec. 124. Consideration by committees.
Sec. 125. Limitation on obligation of unauthorized appropriations.
Sec. 126. Use of funds for scientific consultations or extraordinary 
expenses.
Sec. 127. Mission to Planet Earth limitation.
Sec. 128. Space operations.
Sec. 129. International Space University Limitation.
Sec. 130. Space Station program responsibilities transfer limitation.

                 TITLE II--INTERNATIONAL SPACE STATION

Sec. 201. Findings.
Sec. 202. Commercialization of Space Station.
Sec. 203. Space Station accounting reports.
Sec. 204. Report on international hardware agreements.
Sec. 205. International Space Station limitations.

                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Commercial space launch amendments.
Sec. 302. Requirement for independent cost analysis.
Sec. 303. Office of Space Commerce.
Sec. 304. National Aeronautics and Space Act of 1958 amendments.
Sec. 305. Procurement.
Sec. 306. Acquisition of space science data.
Sec. 307. Commercial space goods and services.
Sec. 308. Acquisition of earth science data.
Sec. 309. EOSDIS report.
Sec. 310. Shuttle privatization.
Sec. 311. Launch voucher demonstration program amendments.
Sec. 312. Use of abandoned and underutilized buildings, grounds, and 
facilities.
Sec. 313. Cost effectiveness calculations.
Sec. 314. Foreign contract limitation.
Sec. 315. Authority to reduce or suspend contract payments based on 
substantial evidence of fraud.
Sec. 316. Next Generation Internet.
Sec. 317. Limitations.
Sec. 318. Notice.
Sec. 319. Sense of Congress on the Year 2000 problem.
Sec. 320. National Oceanographic Partnership Program.
Sec. 321. National Science Foundation Antarctic Program.
Sec. 322. Buy American.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) The National Aeronautics and Space Administration 
        should aggressively pursue actions and reforms directed at 
        reducing institutional costs, including management 
        restructuring, facility consolidation, procurement reform, 
        personnel base downsizing, and convergence with other defense 
        and commercial sector systems.
            (2) The National Aeronautics and Space Administration must 
        reverse its current trend toward becoming an operational 
        agency, and return to its proud history as the Nation's leader 
        in basic scientific, air, and space research.
            (3) The United States is on the verge of creating and using 
        new technologies in microsatellites, information processing, 
        and space launches that could radically alter the manner in 
        which the Federal Government approaches its space mission.
            (4) The overwhelming preponderance of the Federal 
        Government's requirements for routine, nonemergency manned and 
        unmanned space transportation can be met most effectively, 
        efficiently, and economically by a free and competitive market 
        in privately developed and operated space transportation 
        services.
            (5) In formulating a national space transportation service 
        policy, the National Aeronautics and Space Administration 
        should aggressively promote the pursuit by commercial providers 
        of development of advanced space transportation technologies 
        including reusable space vehicles, single-stage-to-orbit 
        vehicles, and human space systems.
            (6) The Federal Government should invest in the types of 
        research and innovative technology in which United States 
        commercial providers do not invest, while avoiding competition 
        with the activities in which United States commercial providers 
        do invest.
            (7) International cooperation in space exploration and 
        science activities serves the United States national interest--
                    (A) when it--
                            (i) reduces the cost of undertaking 
                        missions the United States Government would 
                        pursue unilaterally;
                            (ii) enables the United States to pursue 
                        missions that it could not otherwise afford to 
                        pursue unilaterally; or
                            (iii) enhances United States capabilities 
                        to use and develop space for the benefit of 
                        United States citizens; and
                    (B) when it does not--
                            (i) otherwise harm or interfere with the 
                        ability of United States commercial providers 
                        to develop or explore space commercially;
                            (ii) interfere with the ability of Federal 
                        agencies to use space to complete their 
                        missions;
                            (iii) undermine the ability of United 
                        States commercial providers to compete 
                        favorably with foreign entities in the 
                        commercial space arena; or
                            (iv) transfer sensitive or commercially 
                        advantageous technologies or knowledge from the 
                        United States to other countries or foreign 
                        entities except as required by those countries 
                        or entities to make their contribution to a 
                        multilateral space project in partnership with 
                        the United States, or on a quid pro quo basis.
            (8) The National Aeronautics and Space Administration and 
        the Department of Defense can cooperate more effectively in 
        leveraging their mutual capabilities to conduct joint space 
        missions that improve United States space capabilities and 
        reduce the cost of conducting space missions.

SEC. 3. 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 ``institution of higher education'' has the 
        meaning given such term in section 1201(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1141(a));
            (4) 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
            (5) 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--AUTHORIZATION OF APPROPRIATIONS

                       Subtitle A--Authorizations

SEC. 101. HUMAN SPACE FLIGHT.

    There are authorized to be appropriated to the National Aeronautics 
and Space Administration for Human Space Flight the following amounts:
            (1) For the Space Station--
                    (A) for fiscal year 1998, $2,121,300,000, of which 
                $400,500,000, notwithstanding section 121(a)--
                            (i) shall only be for Space Station 
                        research or for the purposes described in 
                        section 102(2); and
                            (ii) shall be administered by the Office of 
                        Life and Microgravity Sciences and 
                        Applications; and
                    (B) for fiscal year 1999, $2,109,200,000, of which 
                $496,200,000, notwithstanding section 121(a)--
                            (i) shall only be for Space Station 
                        research or for the purposes described in 
                        section 102(2); and
                            (ii) shall be administered by the Office of 
                        Life and Microgravity Sciences and 
                        Applications.
            (2) For Space Shuttle Operations--
                    (A) for fiscal year 1998, $2,494,400,000; and
                    (B) for fiscal year 1999, $2,625,600,000.
            (3) For Space Shuttle Safety and Performance Upgrades--
                    (A) for fiscal year 1998, $483,400,000, including 
                related Construction of Facilities for--
                            (i) Repair of Payload Changeout Room Wall 
                        in Ceiling, Pad A, Kennedy Space Center, 
                        $2,200,000;
                            (ii) Restoration of Pad Surface and Slope, 
                        Kennedy Space Center, $1,800,000; and
                            (iii) Rehabilitation of 480V Electrical 
                        Distribution System, Kennedy Space Center, 
                        $2,800,000; and
                    (B) for fiscal year 1999, $392,900,000.
            (4) For Payload and Utilization Operations--
                    (A) for fiscal year 1998, $247,400,000; and
                    (B) for fiscal year 1999, $178,600,000.

SEC. 102. SCIENCE, AERONAUTICS, AND TECHNOLOGY.

    There are authorized to be appropriated to the National Aeronautics 
and Space Administration for Science, Aeronautics, and Technology the 
following amounts:
            (1) For Space Science--
                    (A) for fiscal year 1998, $2,079,800,000, of 
                which--
                            (i) $47,600,000 shall be for the Gravity 
                        Probe B;
                            (ii) $5,000,000 shall be for participation 
                        in Clementine 2 (Air Force Program Element 
                        0603401F ``Advanced Spacecraft Technology'');
                            (iii) $3,400,000 shall be for the Near 
                        Earth Object Survey;
                            (iv) $529,400,000 shall be for Mission 
                        Operations and Data Analysis, of which 
                        $150,000,000 shall be for data analysis; and
                            (v) $5,000,000 shall be for the Solar B 
                        program; and
                    (B) for fiscal year 1999, $2,085,400,000, of 
                which--
                            (i) $5,000,000 shall be for participation 
                        in Clementine 2 (Air Force Program Element 
                        0603401F ``Advanced Spacecraft Technology'');
                            (ii) $3,400,000 shall be for the Near Earth 
                        Object Survey;
                            (iii) $561,100,000 shall be for Mission 
                        Operations and Data Analysis, of which 
                        $184,400,000 shall be for data analysis; and
                            (iv) $15,000,000 shall be for the Solar B 
                        program.
            (2) For Life and Microgravity Sciences and Applications--
                    (A) for fiscal year 1998, $234,200,000, of which--
                            (i) $2,000,000 shall be for research and 
                        early detection systems for breast and ovarian 
                        cancer and other women's health issues; and
                            (ii) $2,000,000, shall be for modifications 
                        for the installation of the Bio-Plex, Johnson 
                        Space Center; and
                    (B) for fiscal year 1999, $249,800,000, of which 
                $2,000,000 shall be for research and early detection 
                systems for breast and ovarian cancer and other women's 
                health issues.
            (3) For Mission to Planet Earth, subject to the limitations 
        set forth in section 127--
                    (A) for fiscal year 1998, $1,417,300,000, of 
                which--
                            (i) $50,000,000 shall be for commercial 
                        Earth science data purchases under section 
                        308(a);
                            (ii) $8,000,000 shall be for continuing 
                        operations of the Midcourse Space Experiment 
                        spacecraft constructed for the Ballistic 
                        Missile Defense Organization, except that such 
                        funds may not be obligated unless the 
                        Administrator receives independent validation 
                        of the scientific requirements for Midcourse 
                        Space Experiment data; and
                            (iii) $10,000,000 shall be for the 
                        lightning mapper, except that such funds may 
                        not be obligated unless the Administrator 
                        receives independent validation of the 
                        scientific requirements for lightning mapper 
                        data; and
                    (B) for fiscal year 1999, $1,446,300,000, of 
                which--
                            (i) $50,000,000 shall be for commercial 
                        Earth science data purchases under section 
                        308(a); and
                            (ii) $10,000,000 shall be for the lightning 
                        mapper, except that such funds may not be 
                        obligated unless the Administrator receives 
                        independent validation of the scientific 
                        requirements for lightning mapper data.
            (4) For Aeronautics and Space Transportation Technology--
                    (A) for fiscal year 1998, $1,769,500,000, of 
                which--
                            (i) $915,100,000 shall be for Aeronautical 
                        Research and Technology, of which not more than 
                        $35,700,000 shall be for High Performance 
                        Computing and Communications;
                            (ii) $696,600,000 shall be for Advanced 
                        Space Transportation Technology, including--
                                    (I) $333,500,000, which shall only 
                                be for the X-33 advanced technology 
                                demonstration vehicle program, 
                                including $3,700,000 for rehabilitation 
                                and modification of the B2 test stand, 
                                Stennis Space Center;
                                    (II) $150,000,000, which shall only 
                                be for a program of focused technology 
                                demonstrations to support the 
                                competitive awarding of a contract to 
                                develop, build, and flight test an 
                                experimental single-stage-to-orbit 
                                demonstration vehicle, which will be a 
                                complementary follow-on to the X-33, 
                                and which uses design concepts 
                                different from, and technologies more 
                                advanced than, the design concepts and 
                                technologies used for the X-33 program; 
                                and
                                    (III) $150,000,000, which shall 
                                only be for the procurement of an 
                                experimental vehicle described in 
                                subclause (II), after the expiration of 
                                30 days after the Administrator has 
                                transmitted to the Committee on Science 
                                of the House of Representatives and the 
                                Committee on Commerce, Science, and 
                                Transportation of the Senate a written 
                                report including a plan for the 
                                experimental vehicle program and the 
                                projected costs thereof; and
                            (iii) $157,800,000 shall be for Commercial 
                        Technology, of which $10,000,000 shall be for 
                        business facilitators, selected by a National 
                        Aeronautics and Space Administration Center 
                        with an existing State partnership for the 
                        purpose of developing business facilitators, 
                        from among candidates who receive at least 40 
                        percent State matching funds and who obtain 
                        significant participation from local community 
                        colleges; and
                    (B) for fiscal year 1999, $1,816,400,000, of 
                which--
                            (i) $832,400,000 shall be for Aeronautical 
                        Research and Technology;
                            (ii) $818,600,000 shall be for Advanced 
                        Space Transportation Technology, including--
                                    (I) $313,900,000, which shall only 
                                be for the X-33 advanced technology 
                                demonstration vehicle program;
                                    (II) $425,000,000, which shall only 
                                be for the procurement of an 
                                experimental vehicle described in 
                                subparagraph (A)(ii)(II); and
                                    (III) $40,770,000, which shall only 
                                be for the Advanced Space 
                                Transportation program; and
                            (iii) $165,400,000 shall be for Commercial 
                        Technology, of which $10,000,000 shall be for 
                        business facilitators, selected by a National 
                        Aeronautics and Space Administration Center 
                        with an existing State partnership for the 
                        purpose of developing business facilitators, 
                        from among candidates who receive at least 40 
                        percent State matching funds and who obtain 
                        significant participation from local community 
                        colleges.
            (5) For Mission Communication Services--
                    (A) for fiscal year 1998, $400,800,000; and
                    (B) for fiscal year 1999, $436,100,000.
            (6) For Academic Programs--
                    (A) for fiscal year 1998, $102,200,000, of which--
                            (i) $15,300,000 shall be for the National 
                        Space Grant College and Fellowship Program; and
                            (ii) $46,700,000 shall be for minority 
                        university research and education, including 
                        $31,300,000 for Historically Black Colleges and 
                        Universities; and
                    (B) for fiscal year 1999, $108,000,000, of which 
                $51,700,000 shall be for minority university research 
                and education, including $33,800,000 for Historically 
                Black Colleges and Universities.

SEC. 103. MISSION SUPPORT.

    There are authorized to be appropriated to the National Aeronautics 
and Space Administration for Mission Support the following amounts:
            (1) For Safety, Reliability, and Quality Assurance--
                    (A) for fiscal year 1998, $37,800,000; and
                    (B) for fiscal year 1999, $43,000,000.
            (2) For Space Communication Services--
                    (A) for fiscal year 1998, $245,700,000; and
                    (B) for fiscal year 1999, $204,400,000.
            (3)(A) For Construction of Facilities, including land 
        acquisition, for fiscal year 1998, $159,400,000, including the 
        following:
                    (i) Modernization of Process Cooling System, 
                Numerical Aerodynamic Simulation Facility, Ames 
                Research Center, $2,700,000.
                    (ii) Rehabilitation and Modification of Hangar and 
                Shop, Dryden Flight Research Center, $2,800,000.
                    (iii) Restoration of Chilled Water Distribution 
                System, Goddard Space Flight Center, $2,400,000.
                    (iv) Restoration of Space/Terrestrial Application 
                Facility, Goddard Space Flight Center, $4,600,000.
                    (v) Construction of Emergency Services Facility, 
                Jet Propulsion Laboratory, $4,800,000.
                    (vi) Upgrade of Utility Annex Chilled Water Plant, 
                Kennedy Space Center, $5,900,000.
                    (vii) Rehabilitation of High-Voltage System, Lewis 
                Research Center, $9,400,000.
                    (viii) Modification of Chilled Water System, 
                Marshall Space Flight Center, $7,000,000.
                    (ix) Minor Revitalization of Facilities at Various 
                Locations, not in excess of $1,500,000 per project, 
                $65,700,000.
                    (x) Minor construction of new facilities and 
                additions to existing facilities at various locations, 
                $1,100,000.
                    (xi) Facility planning and design, not otherwise 
                provided for, $19,000,000.
                    (xii) Environmental compliance and restoration, 
                $34,000,000.
            (B) For Construction of Facilities, including land 
        acquisition, for fiscal year 1999, $188,900,000.
            (4) For Research and Program Management, including 
        personnel and related costs, travel, and research operations 
        support--
                    (A) for fiscal year 1998, $2,070,300,000; and
                    (B) for fiscal year 1999, $2,022,600,000.

SEC. 104. INSPECTOR GENERAL.

    There are authorized to be appropriated to the National Aeronautics 
and Space Administration for Inspector General--
            (1) for fiscal year 1998, $18,300,000; and
            (2) for fiscal year 1999, $18,600,000.

SEC. 105. TOTAL AUTHORIZATION.

    Notwithstanding any other provision of this title, the total amount 
authorized to be appropriated to the National Aeronautics and Space 
Administration under this Act shall not exceed--
            (1) for fiscal year 1998, $13,881,800,000; and
            (2) for fiscal year 1999, $13,925,800,000.

SEC. 106. OFFICE OF COMMERCIAL SPACE TRANSPORTATION AUTHORIZATION.

    There are authorized to be appropriated to the Secretary of 
Transportation for the activities of the Office of Commercial Space 
Transportation--
            (1) for fiscal year 1998, $6,000,000; and
            (2) for fiscal year 1999, $6,000,000.

SEC. 107. OFFICE OF SPACE COMMERCE.

    There are authorized to be appropriated to the Secretary of 
Commerce for the activities of the Office of Space Commerce established 
by section 303 of this Act--
            (1) for fiscal year 1998, $500,000; and
            (2) for fiscal year 1999, $500,000.

SEC. 108. UNITED STATES-MEXICO FOUNDATION FOR SCIENCE.

    There are authorized to be appropriated to the National Aeronautics 
and Space Administration for the United States-Mexico Foundation for 
Science--
            (1) $1,000,000 for fiscal year 1998; and
            (2) $1,000,000 for fiscal year 1999.

     Subtitle B--Restructuring the National Aeronautics and Space 
                             Administration

SEC. 111. FINDINGS.

    The Congress finds that--
            (1) the restructuring of the National Aeronautics and Space 
        Administration is essential to accomplishing the space missions 
        of the United States while simultaneously balancing the Federal 
        budget;
            (2) to restructure the National Aeronautics and Space 
        Administration rapidly without reducing mission content and 
        safety requires objective financial judgment; and
            (3) a formal economic review of its missions and the 
        Federal assets that support them is required in order to plan 
        and implement needed restructuring of the National Aeronautics 
        and Space Administration.

SEC. 112. RESTRUCTURING REPORTS.

    (a) Implementation Report.--The Administrator shall transmit to 
Congress, no later than 90 days after the date of the enactment of this 
Act, a report--
            (1) describing its restructuring activities by fiscal year, 
        including, at a minimum, a description of all actions taken or 
        planned to be taken after July 31, 1995, and before October 1, 
        2002, including contracts terminated or consolidated; 
        reductions in force; relocations of personnel and facilities; 
        sales, closures, or mothballing of capital assets or 
        facilities; and net savings to be realized from such actions by 
        fiscal year; and
            (2) describing the status of the implementation of 
        recommendations resulting from the Zero Base Review, 
        particularly with respect to the designation of lead Centers 
        and any increases and decreases in the roles and 
        responsibilities of all Centers.
    (b) Proposed Legislation.--The President shall propose to Congress, 
not later than 180 days after the date of the enactment of this Act, 
all enabling legislation required to carry out actions described by the 
Administrator's report under subsection (a).

             Subtitle C--Limitations and Special Authority

SEC. 121. USE OF FUNDS FOR CONSTRUCTION.

    (a) Authorized Uses.--Funds appropriated under sections 101 (1) 
through (4), 102, and 103 (1) and (2), and funds appropriated for 
research operations support under section 103(4), may be used for the 
construction of new facilities and additions to, repair of, 
rehabilitation of, or modification of existing facilities at any 
location in support of the purposes for which such funds are 
authorized.
    (b) Limitation.--No funds may be expended pursuant to subsection 
(a) for a project, the estimated cost of which to the National 
Aeronautics and Space Administration, including collateral equipment, 
exceeds $500,000, until 30 days have passed after the Administrator has 
notified the Committee on Science of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate of 
the nature, location, and estimated cost to the National Aeronautics 
and Space Administration of such project.
    (c) Title to Facilities.--If funds are used pursuant to subsection 
(a) for grants to institutions of higher education, or to nonprofit 
organizations whose primary purpose is the conduct of scientific 
research, for purchase or construction of additional research 
facilities, title to such facilities shall be vested in the United 
States unless the Administrator determines that the national program of 
aeronautical and space activities will best be served by vesting title 
in the grantee institution or organization. Each such grant shall be 
made under such conditions as the Administrator shall determine to be 
required to ensure that the United States will receive therefrom 
benefits adequate to justify the making of that grant.

SEC. 122. AVAILABILITY OF APPROPRIATED AMOUNTS.

    To the extent provided in appropriations Acts, appropriations 
authorized under subtitle A may remain available without fiscal year 
limitation.

SEC. 123. REPROGRAMMING FOR CONSTRUCTION OF FACILITIES.

    (a) In General.--Appropriations authorized for construction of 
facilities under section 101(3)(A) (i) through (iii), 102(2)(A)(ii) and 
(4)(A)(ii)(I), or 103(3)--
            (1) may be varied upward by 10 percent in the discretion of 
        the Administrator; or
            (2) may be varied upward by 25 percent, to meet unusual 
        cost variations, after the expiration of 15 days following a 
        report on the circumstances of such action by the Administrator 
        to the Committee on Science of the House of Representatives and 
        the Committee on Commerce, Science, and Transportation of the 
        Senate.
The aggregate amount authorized to be appropriated for construction of 
facilities under sections 101(3)(A) (i) through (iii), 102(2)(A)(ii) 
and (4)(A)(ii)(I), and 103(3) shall not be increased as a result of 
actions authorized under paragraphs (1) and (2) of this subsection.
    (b) Special Rule.--Where the Administrator determines that new 
developments in the national program of aeronautical and space 
activities have occurred; and that such developments require the use of 
additional funds for the purposes of construction, expansion, or 
modification of facilities at any location; and that deferral of such 
action until the enactment of the next National Aeronautics and Space 
Administration authorization Act would be inconsistent with the 
interest of the Nation in aeronautical and space activities, the 
Administrator may use up to $10,000,000 of the amounts authorized under 
sections 101(3)(A) (i) through (iii), 102(2)(A)(ii) and (4)(A)(ii)(I), 
and 103(3) for each fiscal year for such purposes. No such funds may be 
obligated until a period of 30 days has passed after the Administrator 
has transmitted to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Science of the House 
of Representatives a written report describing the nature of the 
construction, its costs, and the reasons therefor.

SEC. 124. CONSIDERATION BY COMMITTEES.

    Notwithstanding any other provision of law--
            (1) no amount appropriated to the National Aeronautics and 
        Space Administration may be used for any program for which the 
        President's annual budget request included a request for 
        funding, but for which the Congress denied or did not provide 
        funding;
            (2) no amount appropriated to the National Aeronautics and 
        Space Administration may be used for any program in excess of 
        the amount actually authorized for the particular program under 
        this title; and
            (3) no amount appropriated to the National Aeronautics and 
        Space Administration may be used for any program which has not 
        been presented to the Congress in the President's annual budget 
        request or the supporting and ancillary documents thereto,
unless a period of 30 days has passed after the receipt by the 
Committee on Science of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate of notice given 
by the Administrator containing a full and complete statement of the 
action proposed to be taken and the facts and circumstances relied upon 
in support of such proposed action. The National Aeronautics and Space 
Administration shall keep the Committee on Science of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate fully and currently informed with respect 
to all activities and responsibilities within the jurisdiction of those 
committees. Except as otherwise provided by law, any Federal 
department, agency, or independent establishment shall furnish any 
information requested by either committee relating to any such activity 
or responsibility.

SEC. 125. LIMITATION ON OBLIGATION OF UNAUTHORIZED APPROPRIATIONS.

    (a) Reports to Congress.--
            (1) Requirement.--Not later than--
                    (A) 30 days after the later of the date of the 
                enactment of an Act making appropriations to the 
                National Aeronautics and Space Administration for 
                fiscal year 1998 and the date of the enactment of this 
                Act; and
                    (B) 30 days after the date of the enactment of an 
                Act making appropriations to the National Aeronautics 
                and Space Administration for fiscal year 1999,
        the Administrator shall submit a report to Congress and to the 
        Comptroller General.
            (2) Contents.--The reports required by paragraph (1) shall 
        specify--
                    (A) the portion of such appropriations which are 
                for programs, projects, or activities not authorized 
                under subtitle A of this title, or which are in excess 
                of amounts authorized for the relevant program, 
                project, or activity under this Act; and
                    (B) the portion of such appropriations which are 
                authorized under this Act.
    (b) Federal Register Notice.--The Administrator shall, coincident 
with the submission of each report required by subsection (a), publish 
in the Federal Register a notice of all programs, projects, or 
activities for which funds are appropriated but which were not 
authorized under this Act, and solicit public comment thereon regarding 
the impact of such programs, projects, or activities on the conduct and 
effectiveness of the national aeronautics and space program.
    (c) Limitation.--Notwithstanding any other provision of law, no 
funds may be obligated for any programs, projects, or activities of the 
National Aeronautics and Space Administration for fiscal year 1998 or 
1999 not authorized under this Act until 30 days have passed after the 
close of the public comment period contained in a notice required by 
subsection (b).

SEC. 126. USE OF FUNDS FOR SCIENTIFIC CONSULTATIONS OR EXTRAORDINARY 
                    EXPENSES.

    Not more than $30,000 of the funds appropriated under section 102 
may be used for scientific consultations or extraordinary expenses, 
upon the authority of the Administrator.

SEC. 127. MISSION TO PLANET EARTH LIMITATION.

    No funds appropriated pursuant to this Act shall be used for Earth 
System Science Pathfinders for a fiscal year unless the Administrator 
has certified to the Committee on Science of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate that at least $50,000,000 are available 
for that fiscal year for obligations by the Commercial Remote Sensing 
Program at Stennis Space Center for commercial data purchases under 
section 308(a). No funds appropriated pursuant to section 102(3) 
shall--
            (1) be transferred to any museum; or
            (2) be used for the United States Man and the Biosphere 
        Program, or related projects.''.

SEC. 128. SPACE OPERATIONS.

    No funds appropriated pursuant to this Act shall be used for Phase 
Two of the Consolidated Space Operations Contract until a period of 30 
days has passed after the Administrator has transmitted to the 
Committee on Science of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate a written report 
which--
            (1) compares the cost-effectiveness of the single cost-plus 
        contract approach of the Consolidated Space Operations Contract 
        and a multiple fixed-price contracts approach;
            (2) analyzes the differences in the competition generated 
        through the bidding process used for the Consolidated Space 
        Operations Contract as opposed to multiple fixed-price 
        contracts; and
            (3) describes how the Consolidated Space Operations 
        Contract can be transformed into fixed-price contracts, and 
        whether the National Aeronautics and Space Administration 
        intends to make such a transition.

SEC. 129. INTERNATIONAL SPACE UNIVERSITY LIMITATION.

    No funds appropriated pursuant to this Act shall be used to pay the 
tuition or living expenses of any National Aeronautics and Space 
Administration employee attending the International Space University.

SEC. 130. SPACE STATION PROGRAM RESPONSIBILITIES TRANSFER LIMITATION.

    No funds appropriated pursuant to this Act shall be used to 
transfer any Space Station program responsibilities in effect at any 
National Aeronautics and Space Administration Center as of October 1, 
1996.

                 TITLE II--INTERNATIONAL SPACE STATION

SEC. 201. FINDINGS.

    The Congress finds that--
            (1) the development, assembly, and operation of the 
        International Space Station is in the national interest of the 
        United States;
            (2) the significant involvement by commercial providers in 
        marketing and using, competitively servicing, and commercially 
        augmenting the operational capabilities of the International 
        Space Station during its assembly and operational phases will 
        lower costs and increase benefits to the international 
        partners; and
            (3) when completed, the International Space Station will be 
        the largest, most capable microgravity research facility ever 
        developed. It will provide a lasting framework for conducting 
        large-scale science programs with international partners and it 
        is the next step in the human exploration of space. The United 
        States should commit to completing this program, thereby 
        reaping the benefits of scientific research and international 
        cooperation.

SEC. 202. 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.

SEC. 203. SPACE STATION ACCOUNTING REPORTS.

    (a) Initial Report.--Not later than 90 days after the date of the 
enactment of this Act, the Administrator shall transmit to the Congress 
a report containing a description of all Space Station-related 
agreements entered into by the United States with a foreign entity 
after September 30, 1993, along with--
            (1) a complete accounting of all costs to the United States 
        incurred during fiscal years 1994 through 1996 pursuant to each 
        such agreement; and
            (2) an estimate of future costs to the United States 
        pursuant to each such agreement.
    (b) Annual Reports.--Not later than 60 days after the end of each 
fiscal year beginning with fiscal year 1997, the Administrator shall 
transmit to the Congress a report containing a description of all Space 
Station-related agreements entered into by the United States with a 
foreign entity during the preceding fiscal year, along with--
            (1) a complete accounting of all costs to the United States 
        incurred during that fiscal year pursuant to each such 
        agreement; and
            (2) an estimate of future costs to the United States 
        pursuant to each such agreement.

SEC. 204. REPORT ON INTERNATIONAL HARDWARE AGREEMENTS.

    Not later than 90 days after the date of the enactment of this Act, 
the Administrator shall transmit to the Committee on Science of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on--
            (1) agreements that have been reached with foreign entities 
        to transfer to a foreign entity the development and manufacture 
        of International Space Station hardware baselined to be 
        provided by the United States; and
            (2) the impact of those agreements on United States 
        operating costs and United States utilization shares of the 
        International Space Station.
At least 90 days before entering into any additional agreements of the 
type described in paragraph (1), the Administrator shall report to the 
Committee on Science of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate the nature of 
the proposed agreement and the anticipated cost, schedule, commercial, 
and utilization impacts of the proposed agreement.

SEC. 205. INTERNATIONAL SPACE STATION LIMITATIONS.

    (a) Transfer of Funds to Russia.--No funds or in-kind payments 
shall be transferred to any entity of the Russian Government or any 
Russian contractor to perform work on the International Space Station 
which the Russian Government pledged, at any time, to provide at its 
expense. This section shall not apply to the purchase or modification 
of the Russian built, United States owned Functional Cargo Block, known 
as the ``FGB''.
    (b) Contingency Plan for Russian Elements in Critical Path.--The 
Administrator shall develop and deliver to Congress, within 30 days 
after the date of the enactment of this Act, a contingency plan for the 
removal or replacement of each Russian Government element of the 
International Space Station that lies in the Station's critical path. 
Such plan shall include--
            (1) decision points for removing or replacing those 
        elements if the International Space Station is to be completed 
        by the end of the calendar year 2002;
            (2) the cost of implementing each such decision; and
            (3) the cost of removing or replacing a Russian Government 
        critical path element after its decision point has passed, if--
                    (A) the decision at that point was not to remove or 
                replace the Russian Government element; and
                    (B) the National Aeronautics and Space 
                Administration later determines that the Russian 
                Government will be unable to provide the critical path 
                element in a manner to allow completion of the 
                International Space Station by the end of calendar year 
                2002.
    (c) Monthly Certification on Russian Status.--The Administrator 
shall certify to the Congress on the first day of each month whether or 
not the Russians have performed work expected of them and necessary to 
complete the International Space Station by the end of calendar year 
2002. Such certification shall also include a statement of the 
Administrator's judgment concerning Russia's ability to perform work 
anticipated and required to complete the International Space Station by 
the end of 2002 before the next certification under this subsection. 
Each certification under this subsection shall include a judgment that 
the first element launch will or will not take place by October 31, 
1998.
    (d) Decision on Russian Critical Path Items.--The President shall 
provide to Congress a decision, by August 1, 1997, on whether or not to 
proceed with permanent replacement of the Service Module, and each 
other Russian element in the critical path for completing the 
International Space Station by the end of calendar year 2002. The 
President shall certify to Congress the reasons and justification for 
the decision and the costs associated with the decision. Such decision 
shall include a judgment that the first element launch will or will not 
take place by October 31, 1998, and that the stage of assembly complete 
will or will not take place by December 31, 2002. If the President 
decides, after August 1, 1997, to proceed with a permanent replacement 
of the Service Module or any other Russian element in the critical 
path, the President shall certify to Congress the reasons and 
justification for the decision to proceed with permanent replacement, 
and the costs associated with that decision, including the cost 
difference between making such decision by August 1, 1997, and any 
later date at which it is made. Such certification shall include a 
description of the costs of removing or replacing each critical path 
item, and the schedule for completing the International Space Station 
by the end of calendar year 2002.
    (e) Astronauts on Mir.--The National Aeronautics and Space 
Administration shall not place another United States astronaut on board 
the Mir Space Station, without the Space Shuttle attached to Mir, until 
the Administrator certifies to Congress that the Mir Space Station 
meets or exceeds United States safety standards. Such certification 
shall be based on an independent review of the safety of the Mir Space 
Station.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. 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.'';
                and
                    (C) by amending the item relating to section 70109 
                to read as follows:

``70109. Preemption of scheduled launches or reentries.'';
            (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 ``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) by striking ``and any payload'' and inserting 
                in lieu thereof ``or reentry vehicle and any payload 
                from Earth'' in paragraph (3);
                    (B) by inserting ``or reentry vehicle'' after 
                ``means of a launch vehicle'' in paragraph (8);
                    (C) by redesignating paragraphs (10) through (12) 
                as paragraphs (14) through (16), respectively;
                    (D) 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 substantially 
        intact.''; and
                    (E) by inserting ``or reentry services'' after 
                ``launch services'' each place it appears in paragraph 
                (15), as so redesignated by subparagraph (C) 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 ``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);
                    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 ``or a reentry site, or the 
                reentry of a reentry vehicle,'' after ``operation of a 
                launch site'' in subsection (b)(1); and
                    (B) by striking ``or operation'' and inserting in 
                lieu thereof ``, operation, or reentry'' in subsection 
                (b)(2)(A);
            (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 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
                    (G) by inserting ``, reentry vehicle,'' after 
                ``manufacturer of the launch vehicle'' in subsection 
                (d);
            (12) in section 70112--
                    (A) by inserting ``or reentry'' after ``one 
                launch'' in subsection (a)(3);
                    (B) by inserting ``or reentry services'' after 
                ``launch services'' in subsection (a)(4);
                    (C) by inserting ``or reentry services'' after 
                ``launch services'' each place it appears in subsection 
                (b);
                    (D) by inserting ``applicable'' after ``carried out 
                under the'' in paragraphs (1) and (2) of subsection 
                (b);
                    (E) by inserting ``or Reentries'' after 
                ``Launches'' in the heading for subsection (e); and
                    (F) by inserting ``or reentry site or a reentry'' 
                after ``launch site'' in subsection (e);
            (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; and
            (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, or 
                        operation of a launch site or reentry site,''; 
                        and
                            (ii) by inserting ``reentry,'' after 
                        ``launch,'' in paragraph (2).
    (b) Additional Amendments.--(1) Section 70105 of title 49, United 
States Code, is amended--
            (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 
        new paragraph:
    ``(2) In carrying out paragraph (1), the Secretary may establish 
procedures for certification of the safety of a launch vehicle, reentry 
vehicle, or safety system, procedure, service, or personnel that may be 
used in conducting licensed commercial space launch or reentry 
activities.'';
            (D) by striking ``and'' at the end of subsection (b)(2)(B);
            (E) by striking the period at the end of subsection 
        (b)(2)(C) and inserting in lieu thereof ``; and'';
            (F) 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
            (G) by inserting ``, or the requirement to obtain a 
        license,'' after ``waive a requirement'' in subsection (b)(3).
    (2) The amendment made by paragraph (1)(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 paragraph 
(1)(F) of this subsection.
    (3) Section 70102(5) of title 49, United States Code, is amended--
            (A) by redesignating subparagraphs (A) and (B) as 
        subparagraphs (B) and (C), respectively; and
            (B) by inserting before subparagraph (B), as so 
        redesignated by subparagraph (A) of this paragraph, the 
        following new subparagraph:
                    ``(A) activities directly related to the 
                preparation of a launch site or payload facility for 
                one or more launches;''.
    (4) Section 70103(b) of title 49, United States Code, is amended--
            (A) in the subsection heading, as amended by subsection 
        (a)(4)(A) of this section, by inserting ``and State Sponsored 
        Spaceports'' after ``and Reentries''; and
            (B) in paragraph (1), by inserting ``and State sponsored 
        spaceports'' after ``private sector''.
    (5) Section 70105(a)(1) of title 49, United States Code, as amended 
by subsection (b)(1) of this section, is amended by inserting at the 
end the following: ``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 7 days after any occurrence when a license is not issued within 
the deadline established by this subsection.''.
    (6) Section 70111 of title 49, United States Code, is amended--
            (A) in subsection (a)(1), by inserting after subparagraph 
        (B) the following:
``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.'';
            (B) by striking ``actual costs'' in subsection (b)(1) and 
        inserting in lieu thereof ``additive costs only''; and
            (C) 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.''.
    (7) Section 70112 of title 49, United States Code, is amended--
            (A) in subsection (a)(1), by inserting ``launch, reentry, 
        or site operator'' after ``(1) When a'';
            (B) in subsection (b)(1), by inserting ``launch, reentry, 
        or site operator'' after ``(1) A''; and
            (C) in subsection (f), by inserting ``launch, reentry, or 
        site operator'' after ``carried out under a''.
    (c) Regulations.--(1) Chapter 701 of title 49, United States Code, 
is amended by adding at the end the following new section:

``Sec. 70120. Regulations

    ``The Secretary of Transportation, within 6 months after the date 
of the enactment of this section, shall issue regulations to carry out 
this chapter that include--
            ``(1) guidelines for industry to obtain sufficient 
        insurance coverage for potential damages to third parties;
            ``(2) procedures for requesting and obtaining licenses to 
        operate a commercial launch vehicle and reentry vehicle;
            ``(3) procedures for requesting and obtaining operator 
        licenses for launch and reentry; and
            ``(4) procedures for the application of government 
        indemnification.''.
    (2) The table of sections for such chapter 701 is amended by adding 
after the item relating to section 70119 the following new item:

``70120. Regulations.''.
    (d) Report to Congress.--(1) Chapter 701 of title 49, United States 
Code, is further amended by adding at the end the following new 
section:

``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.''.
    (2) The table of sections for such chapter 701 is further amended 
by adding after the item relating to section 70120, as added by 
subsection (c)(2) of this section, the following new item:

``70121. Report to Congress.''.

SEC. 302. REQUIREMENT FOR INDEPENDENT COST ANALYSIS.

    Before any funds may be obligated for Phase C of a project that is 
projected to cost more than $75,000,000 in total project costs, the 
Chief Financial Officer for the National Aeronautics and Space 
Administration shall conduct an independent cost analysis of such 
project and shall report the results to Congress. In developing cost 
accounting and reporting standards for carrying out this section, the 
Chief Financial Officer shall, to the extent practicable and consistent 
with other laws, solicit the advice of expertise outside of the 
National Aeronautics and Space Administration.

SEC. 303. OFFICE OF SPACE COMMERCE.

    (a) Establishment.--There is established within the Department of 
Commerce an Office of Space Commerce.
    (b) Functions.--The Office of Space Commerce shall be the principal 
unit for the coordination of space-related issues, programs, and 
initiatives within the Department of Commerce. The Office's primary 
responsibilities shall include--
            (1) promoting commercial provider investment in space 
        activities by collecting, analyzing, and disseminating 
        information on space markets, and conducting workshops and 
        seminars to increase awareness of commercial space 
        opportunities;
            (2) assisting United States commercial providers in their 
        efforts to do business with the United States Government, and 
        acting as an industry advocate within the executive branch to 
        ensure that the Federal Government meets its space-related 
        requirement, to the fullest extent feasible, with commercially 
        available space goods and services;
            (3) ensuring that the United States Government does not 
        compete with United States commercial providers in the 
        provision of space hardware and services otherwise available 
        from United States commercial providers;
            (4) promoting the export of space-related goods and 
        services;
            (5) representing the Department of Commerce in the 
        development of United States policies and in negotiations with 
        foreign countries to ensure free and fair trade internationally 
        in the area of space commerce; and
            (6) seeking the removal of legal, policy, and institutional 
        impediments to space commerce.

SEC. 304. NATIONAL AERONAUTICS AND SPACE ACT OF 1958 AMENDMENTS.

    (a) Declaration of Policy and Purpose.--Section 102 of the National 
Aeronautics and Space Act of 1958 (42 U.S.C. 2451) is amended--
            (1) by striking subsection (f) and redesignating 
        subsections (g) and (h) as subsections (f) and (g), 
        respectively; and
            (2) in subsection (g), as so redesignated by paragraph (1) 
        of this subsection, by striking ``(f), and (g)'' and inserting 
        in lieu thereof ``and (f)''.
    (b) Reports to the Congress.--Section 206(a) of the National 
Aeronautics and Space Act of 1958 (42 U.S.C. 2476(a)) is amended--
            (1) by striking ``January'' and inserting in lieu thereof 
        ``May''; and
            (2) by striking ``calendar'' and inserting in lieu thereof 
        ``fiscal''.
    (c) Disclosure of Technical Data.--Section 303 of the National 
Aeronautics and Space Act of 1958 (42 U.S.C. 2454) is amended--
            (1) in subsection (a)(C), by inserting ``or (c)'' after 
        ``subsection (b)''; and
            (2) by adding at the end the following new subsection:
    ``(c)(1) The Administrator may, and at the request of a private 
sector entity shall, delay for a period of at least one day, but not to 
exceed 5 years, the unrestricted public disclosure of technical data in 
the possession of, or under the control of, the Administration that has 
been generated in the performance of experimental, developmental, or 
research activities or programs funded jointly by the Administration 
and such private sector entity.
    ``(2) Within 1 year after the date of the enactment of the Civilian 
Space Authorization Act, Fiscal Years 1998 and 1999, the Administrator 
shall issue regulations to carry out this subsection. Paragraph (1) 
shall not take effect until such regulations are issued.
    ``(3) Regulations issued pursuant to paragraph (2) shall include--
            ``(A) guidelines for a determination of whether data is 
        technical data within the meaning of this subsection;
            ``(B) provisions to ensure that technical data is available 
        for dissemination within the United States to United States 
        persons and entities in furtherance of the objective of 
        maintaining leadership or competitiveness in civil and 
        governmental aeronautical and space activities by the United 
        States industrial base; and
            ``(C) a specification of the period or periods for which 
        the delay in unrestricted public disclosure of technical data 
        is to apply to various categories of such data, and the 
        restrictions on disclosure of such data during such period or 
        periods, including a requirement that the maximum 5-year 
        protection under this subsection shall not be provided unless 
        at least 50 percent of the funding for the activities or 
        programs is provided by the private sector.
    ``(4) The Administrator shall annually report to the Congress all 
determinations made under paragraph (1).
    ``(5) For purposes of this subsection, the term `technical data' 
means any recorded information, including computer software, that is or 
may be directly applicable to the design, engineering, development, 
production, manufacture, or operation of products or processes that may 
have significant value in maintaining leadership or competitiveness in 
civil and governmental aeronautical and space activities by the United 
States industrial base.''.

SEC. 305. PROCUREMENT.

    (a) Procurement Demonstration Program.--
            (1) In general.--The Administrator shall establish a 
        program of expedited technology procurement for the purpose of 
        demonstrating how innovative technology concepts can rapidly be 
        brought to bear upon space missions of the National Aeronautics 
        and Space Administration.
            (2) Procedures and evaluation.--The Administrator shall 
        establish procedures for actively seeking from persons outside 
        the National Aeronautics and Space Administration innovative 
        technology concepts, relating to the provision of space 
        hardware, technology, or service to the National Aeronautics 
        and Space Administration.
            (3) Special authority.--In order to carry out this 
        subsection the Administrator shall recruit and hire for limited 
        term appointments persons from outside the National Aeronautics 
        and Space Administration with special expertise and experience 
        related to the innovative technology concepts with respect to 
        which procurements are made under this subsection.
            (4) Sunset.--This subsection shall cease to be effective 10 
        years after the date of its enactment.
    (b) Technology Procurement Initiative.--
            (1) In general.--The Administrator shall coordinate 
        National Aeronautics and Space Administration resources in the 
        areas of procurement, commercial programs, and advanced 
        technology in order to--
                    (A) fairly assess and procure commercially 
                available technology from the marketplace in the most 
                efficient manner practicable;
                    (B) achieve a continuous pattern of integrating 
                advanced technology from the commercial sector, and 
                from Federal sources outside the National Aeronautics 
                and Space Administration, into the missions and 
                programs of the National Aeronautics and Space 
                Administration;
                    (C) incorporate private sector buying and bidding 
                procedures, including fixed price contracts, into 
                procurements; and
                    (D) provide incentives for cost-plus contractors of 
                the National Aeronautics and Space Administration to 
                integrate commercially available technology in 
                subsystem contracts on a fixed-price basis.
            (2) Certification.--Upon solicitation of any procurement 
        for space hardware, technology, or services that are not 
        commercially available, the Administrator shall certify, by 
        publication of a notice and opportunity to comment in the 
        Commerce Business Daily, for each such procurement action, that 
        no functional equivalent, commercially, available space 
        hardware, technology, or service exists and that no commercial 
        method of procurement is available.

SEC. 306. 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 and the planets, Earth 
environmental data obtained through remote sensing observations, 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. 307. COMMERCIAL SPACE GOODS AND SERVICES.

    The National Aeronautics and Space Administration shall purchase 
commercially available space goods and services to the fullest extent 
feasible, and shall not conduct activities that preclude or deter 
commercial space activities except for reasons of national security or 
public safety. A space good or service shall be deemed commercially 
available if it is offered by a United States commercial provider, or 
if it could be supplied by a United States commercial provider in 
response to a Government procurement request. For purposes of this 
section, a purchase is feasible if it meets mission requirements in a 
cost-effective manner.

SEC. 308. 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.

SEC. 309. EOSDIS REPORT.

    Not later than 90 days after the date of the enactment of this Act, 
the Administrator shall transmit to the Committee on Science of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report which contains--
            (1) an analysis of the scientific capabilities, costs, and 
        schedule of the Earth Observing System Data and Information 
        System (EOSDIS);
            (2) an identification and analysis of the threats to the 
        success of the EOSDIS Core System; and
            (3) a plan and cost estimates for resolving the threats 
        identified under paragraph (2) to the EOSDIS Core System before 
        the launch of the Earth Observing System satellite known as PM-
        1.

SEC. 310. SHUTTLE PRIVATIZATION.

    (a) Policy and Preparation.--The Administrator shall prepare for an 
orderly transition from the Federal operation, or Federal management of 
contracted operation, of space transportation systems to the Federal 
purchase of commercial space transportation services for all 
nonemergency launch requirements, including human, cargo, and mixed 
payloads. In those preparations, the Administrator shall take into 
account the need for short-term economies, as well as the goal of 
restoring the National Aeronautics and Space Administration's research 
focus and its mandate to promote the fullest possible commercial use of 
space. As part of those preparations, the Administrator shall plan for 
the potential privatization of the Space Shuttle program. Such plan 
shall keep safety and cost effectiveness as high priorities. Nothing in 
this section shall prohibit the National Aeronautics and Space 
Administration from studying, designing, developing, or funding 
upgrades or modifications essential to the safe and economical 
operation of the Space Shuttle fleet.
    (b) Feasibility Study.--The Administrator shall conduct a study of 
the feasibility of implementing the recommendation of the Independent 
Shuttle Management Review Team that the National Aeronautics and Space 
Administration transition toward the privatization of the Space 
Shuttle. The study shall identify, discuss, and, where possible, 
present options for resolving, the major policy and legal issues that 
must be addressed before the Space Shuttle is privatized, including--
            (1) whether the Federal Government or the Space Shuttle 
        contractor should own the Space Shuttle orbiters and ground 
        facilities;
            (2) whether the Federal Government should indemnify the 
        contractor for any third party liability arising from Space 
        Shuttle operations, and, if so, under what terms and 
        conditions;
            (3) whether payloads other than National Aeronautics and 
        Space Administration payloads should be allowed to be launched 
        on the Space Shuttle, how missions will be prioritized, and who 
        will decide which mission flies and when;
            (4) whether commercial payloads should be allowed to be 
        launched on the Space Shuttle and whether any classes of 
        payloads should be made ineligible for launch consideration;
            (5) whether National Aeronautics and Space Administration 
        and other Federal Government payloads should have priority over 
        non-Federal payloads in the Space Shuttle launch assignments, 
        and what policies should be developed to prioritize among 
        payloads generally;
            (6) whether the public interest requires that certain Space 
        Shuttle functions continue to be performed by the Federal 
        Government; and
            (7) how much cost savings, if any, will be generated by 
        privatization of the Space Shuttle.
    (c) Report to Congress.--Within 60 days after the date of the 
enactment of this Act, the National Aeronautics and Space 
Administration shall complete the study required under subsection (b) 
and shall submit a report on the study to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on Science 
of the House of Representatives.

SEC. 311. LAUNCH VOUCHER DEMONSTRATION PROGRAM AMENDMENTS.

    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. 312. USE OF ABANDONED AND UNDERUTILIZED BUILDINGS, GROUNDS, AND 
                    FACILITIES.

    (a) In General.--In meeting the needs of the National Aeronautics 
and Space Administration for additional facilities, the Administrator, 
whenever feasible, shall select abandoned and underutilized buildings, 
grounds, and facilities in depressed communities that can be converted 
to National Aeronautics and Space Administration facilities at a 
reasonable cost, as determined by the Administrator.
    (b) Definitions.--For purposes of this section, the term 
``depressed communities'' means rural and urban communities that are 
relatively depressed, in terms of age of housing, extent of poverty, 
growth of per capita income, extent of unemployment, job lag, or 
surplus labor.

SEC. 313. COST EFFECTIVENESS CALCULATIONS.

    In calculating the cost effectiveness of the cost of the National 
Aeronautics and Space Administration engaging in an activity as 
compared to a commercial provider, the Administrator shall compare the 
cost of the National Aeronautics and Space Administration engaging in 
the activity using full cost accounting principles with the price the 
commercial provider will charge for such activity.

SEC. 314. FOREIGN CONTRACT LIMITATION.

    The National Aeronautics and Space Administration shall not enter 
into any agreement or contract with a foreign government that grants 
the foreign government the right to recover profit in the event that 
the agreement or contract is terminated.

SEC. 315. AUTHORITY TO REDUCE OR SUSPEND CONTRACT PAYMENTS BASED ON 
                    SUBSTANTIAL EVIDENCE OF FRAUD.

    Section 2307(h)(8) of title 10, United States Code, is amended by 
striking ``and (4)'' and inserting in lieu thereof ``(4), and (6)''.

SEC. 316. NEXT GENERATION INTERNET.

    None of the funds authorized by this Act, or any other Act enacted 
before the date of the enactment of this Act, may be used for the Next 
Generation Internet. Notwithstanding the previous sentence, funds may 
be used for the continuation of programs and activities that were 
funded and carried out during fiscal year 1997.

SEC. 317. LIMITATIONS.

    (a) Prohibition of Lobbying Activities.--None of the funds 
authorized by this Act and the amendments made by this Act shall be 
available for any activity whose purpose is to influence legislation 
pending before the Congress, except that this subsection shall not 
prevent officers or employees of the United States or of its 
departments or agencies from communicating to Members of Congress on 
the request of any Member or to Congress, through the proper channels, 
requests for legislation or appropriations which they deem necessary 
for the efficient conduct of the public business.
    (b) Limitation on Appropriations.--No sums are authorized to be 
appropriated to the Administrator for fiscal years 1998 and 1999 for 
the activities for which sums are authorized by this Act and the 
amendments made by this Act, unless such sums are specifically 
authorized to be appropriated by this Act or the amendments made by 
this Act.
    (c) Eligibility for Awards.--
            (1) In general.--The Administrator shall exclude from 
        consideration for grant agreements made by the National 
        Aeronautics and Space Administration after fiscal year 1997 any 
        person who received funds, other than those described in 
        paragraph (2), appropriated for a fiscal year after fiscal year 
        1997, under a grant agreement from any Federal funding source 
        for a project that was not subjected to a competitive, merit-
        based award process. Any exclusion from consideration pursuant 
        to this subsection shall be effective for a period of 5 years 
        after the person receives such Federal funds.
            (2) Exception.--Paragraph (1) shall not apply to the 
        receipt of Federal funds by a person due to the membership of 
        that person in a class specified by law for which assistance is 
        awarded to members of the class according to a formula provided 
        by law.
            (3) Definition.--For purposes of this subsection, the term 
        ``grant agreement'' means a legal instrument whose principal 
        purpose is to transfer a thing of value to the recipient to 
        carry out a public purpose of support or stimulation authorized 
        by a law of the United States, and does not include the 
        acquisition (by purchase, lease, or barter) of property or 
        services for the direct benefit or use of the United States 
        Government. Such term does not include a cooperative agreement 
        (as such term is used in section 6305 of title 31, United 
        States Code) or a cooperative research and development 
        agreement (as such term is defined in section 12(d)(1) of the 
        Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
        3710a(d)(1))).

SEC. 318. NOTICE.

    (a) Notice of Reprogramming.--If any funds authorized by this Act 
or the amendments made by this Act are subject to a reprogramming 
action that requires notice to be provided to the Appropriations 
Committees of the House of Representatives and the Senate, notice of 
such action shall concurrently be provided to the Committee on Science 
of the House of Representatives and the Committee on Commerce, Science, 
and Transportation of the Senate.
    (b) Notice of Reorganization.--The Administrator shall provide 
notice to the Committees on Science and Appropriations of the House of 
Representatives, and the Committees on Commerce, Science, and 
Transportation and Appropriations of the Senate, not later than 15 days 
before any major reorganization of any program, project, or activity of 
the National Aeronautics and Space Administration.

SEC. 319. SENSE OF CONGRESS ON THE YEAR 2000 PROBLEM.

    With the year 2000 fast approaching, it is the sense of Congress 
that the National Aeronautics and Space Administration should--
            (1) give high priority to correcting all 2-digit date-
        related problems in its computer systems to ensure that those 
        systems continue to operate effectively in the year 2000 and 
        beyond;
            (2) assess immediately the extent of the risk to the 
        operations of the National Aeronautics and Space Administration 
        posed by the problems referred to in paragraph (1), and plan 
        and budget for achieving Year 2000 compliance for all of its 
        mission-critical systems; and
            (3) develop contingency plans for those systems that the 
        National Aeronautics and Space Administration is unable to 
        correct in time.

SEC. 320. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

    The National Aeronautics and Space Administration is authorized to 
participate in the National Oceanic Partnership Program established by 
the National Oceanic Partnership Act (Public Law 104-201).

SEC. 321. NATIONAL SCIENCE FOUNDATION ANTARCTIC PROGRAM.

    If the Administrator determines that excess capacity is available 
on the Tracking Data Relay Satellite System (TDRSS), the Administrator 
shall give strong consideration to meeting the needs of the National 
Science Foundation Antarctic Program.

SEC. 322. BUY AMERICAN.

    (a) Compliance With Buy American Act.--No funds appropriated 
pursuant to this Act or the amendments made by this Act may be expended 
by an entity unless the entity agrees that in expending the assistance 
the entity will comply with sections 2 through 4 of the Act of March 3, 
1933 (41 U.S.C. 10a-10c, popularly known as the ``Buy American Act'').
    (b) Sense of Congress.--In the case of any equipment or products 
that may be authorized to be purchased with financial assistance 
provided under this Act or the amendments made by this Act, it is the 
sense of Congress that entities receiving such assistance should, in 
expending the assistance, purchase only American-made equipment and 
products.
    (c) Notice to Recipients of Assistance.--In providing financial 
assistance under this Act or the amendments made by this Act, the 
Administrator shall provide to each recipient of the assistance a 
notice describing the statement made in subsection (a) by the Congress.

                II. Background and Need for Legislation

    The National Aeronautics and Space Administration was 
created in 1958 to help win the Cold War. In 1997, the agency 
finds itself working with former Cold War adversaries and 
undertaking activities in new areas, such as environmental 
research. The end of the Cold War and these changes in NASA's 
mission have led to considerable budgetary instability during 
the 1990's. As late as 1992, projections of NASA's annual 
budget had it rising to some $20 billion by the year 2000. 
However, in 1996, the White House submitted a request that cut 
NASA's budget to $11.6 billion in the year 2000. This year, the 
budget request for NASA reduces the agency's budget from $13.7 
billion in FY 97 to $13.2 billion in FY00, where it remains 
through FY 02. After adjustment for inflation, these budget 
cuts go even deeper into NASA's programs. H.R. 1275 addresses 
these instabilities and provides NASA with a budget that grows, 
but remains slightly below the level of inflation. Thus, H.R. 
1275 is necessary to provide the agency with the budget 
stability that it needs to perform its research and development 
missions.
    Besides its budget instability, NASA is now deeply involved 
in the International Space Station. The Clinton Administration 
invited the Russians to join the program in 1993. Since then, 
the Russians have consistently not met their obligations to 
fund and construct up to half of the Station's habitable 
volume. Consequently, NASA has delayed the first element launch 
by up to 11 months. In the course of addressing this problem 
through hearings and oversight, the Committee has determined 
that NASA lacks a sound decision process for resolving Russian 
problems or exercising firm contingency plans to complete the 
International Space Station. H.R. 1275 establishes a firm 
decision process for resolving the Russian problem. The 
legislation is therefore necessary if Congress expects NASA to 
build the International Space Station.
    Finally, the bill includes amendments to the Commercial 
Space Launch Act (CSLA). Currently, there is no licensing 
procedure to conduct reentry from space. Such reentry is vital 
if new technologies in reusable launch vehicles are to be 
exploited and the opportunity to conduct commercial experiments 
in space for return to Earth is to be taken. The bill 
authorizes and directs the Office of Commercial Space 
Transportation within the Department of Transportation to 
establish licensing mechanisms and regulations for reentry from 
space.

                        III. Summary of Hearings

    The Subcommittee on Space and Aeronautics held six formal 
authorization hearings during the early part of 1997 regarding 
the Fiscal Year 1998 budget request for the National 
Aeronautics and Space Administration (NASA).

    On March 4, 1997, the Subcommittee on Space and Aeronautics 
held its ``FY98 NASA Posture Hearing.'' Administrator Goldin 
testified regarding the Fiscal Year 1998 NASA Budget request.

Purpose of Hearing

    The objectives for NASA as laid out by the National 
Aeronautics and Space Act of 1958 include: expansion of human 
knowledge; improvement of aeronautical and space vehicles; 
development of vehicles to travel through space; sharing of 
knowledge between military and civilian space communities; 
international cooperation; and preservation of the United 
States' role as a leader in aeronautics, space science, and 
technology. The Subcommittee on Space and Aeronautics is 
responsible for overseeing and authorizing appropriations for 
all the activities within NASA as well as the commercial space 
activities within the Department of Commerce (Office of Space 
Commerce) and the Department of Transportation (Office of 
Commercial Space Transportation). The purpose of this hearing 
was to receive testimony from the Administrator regarding the 
Fiscal Year 1998 budget request for NASA.

Key Issues

    Administrator Goldin testified that the President's Fiscal 
Year 1998 budget request of $13.5 billion, along with stable 
funding in the outyears, will give America a robust space and 
aeronautics program. He maintained that NASA is currently 
spending more on research and development and less on overhead. 
Mr. Goldin noted that in 1992, NASA spent only 31 percent of 
its budget on science, aeronautics, and space technology and 
the request for Fiscal Year 1998, allocates 44 percent of the 
budget to those same areas. Mr. Goldin reviewed delays 
currently facing the construction of the International Space 
Station, but insisted that NASA wants to continue to work with 
the Russian government in completing this ``most complex 
mission.'' In closing, he stated that the future of NASA is 
about making airlines safer, exploring the solar system, and 
building the International Space Station.

    On March 12, 1997, the Subcommittee held its second 
authorization hearing ``FY98 NASA Authorization: Aeronautics 
and Space Transportation Technology.'' The witnesses were: Dr. 
Robert E. Whitehead, NASA's Associate Administrator for 
Aeronautics and Space Transportation Technology, and Gary E. 
Payton, NASA's Deputy Associate Administrator for Space 
Transportation Technology and Director of the Space 
Transportation Division.

Purpose of Hearing

    The purpose of this hearing was to receive testimony from 
NASA witnesses on the current status of NASA's Aeronautics and 
Space Transportation Technology program. The hearing focused 
on: (1) progress in and additions to the Aeronautics program; 
(2) the status of NASA's Reusable Launch Vehicle and Advanced 
Space Transportation Program activities; (3) future space 
transportation initiatives; and (4) NASA's Commercial 
Technology activities.

Key Issues

    Dr. Robert E. Whitehead, NASA's Associate Administrator for 
the Office of Aeronautics and Space Transportation Technology, 
noted that NASA combined the Aeronautics and Space 
Transportation Technology enterprises in 1996. He stated that 
the current enterprise is shaped around three technology 
pillars for success: (1) global civil aviation, (2) 
revolutionary technology leaps, and (3) access to space.
    Mr. Gary E. Payton, NASA's Deputy Associate Administrator 
for Space Transportation Technology and Director of the Space 
Transportation Division, discussed the accomplishments of the 
DC-XA program and the selection of the designs for the X-33 and 
X-34 vehicles.

    On March 13, 1997, the Subcommittee held its third 
authorization hearing ``FY98 NASA Authorization: Space Shuttle 
Program.'' The witnesses were: Steve Oswald, NASA's Deputy 
Associate Administrator for the Space Shuttle program; Paul M. 
Johnstone, Chairman of the Aerospace Safety Advisory Panel; and 
Kent Black, Chief Executive Officer for United Space Alliance.

Purpose of Hearing

    The purpose of this hearing was to receive testimony from 
witnesses on the current status of the Space Shuttle program. 
Testimony before the Subcommittee focused on: (1) overall 
program safety; (2) how improvements instituted since the 
Challenger tragedy will be maintained during agency downsizing; 
(3) NASA's future plans for Orbiter Maintenance Down Periods; 
(4) how the agency will maintain and upgrade it's Orbiter fleet 
for operations through the next decade; and (5) the ongoing 
consolidation of the program under a single prime contractor.

Key Issues

    Mr. Steve Oswald, NASA's Deputy Associate Administrator for 
the Space Shuttle program, testified that NASA is flying the 
Space Shuttle more safely and accomplishing more on orbit than 
ever before. He maintained that NASA's Space Shuttle program is 
living up to the promises that were made to Congress and the 
American people by meeting the commitment of flying safely for 
less money.
    Mr. Paul M. Johnstone, Chairman of the Aerospace Safety 
Advisory Panel, noted that relations between NASA and United 
Space Alliance, the Shuttle's single prime contractor, seem 
excellent. He said that the Aerospace Safety Advisory Panel 
believes that the transition to a single prime contract has not 
changed flight or ground risks of the program. However, Mr. 
Johnstone pointed out that there is a clear need on the part of 
both NASA and United Space Alliance to take steps to ensure the 
availability of a skilled and experienced work force in 
sufficient numbers to meet ongoing safety needs of the Shuttle 
program.
    Mr. Kent Black, Chief Executive Officer of United Space 
Alliance, testified that one of the objectives of the Space 
Flight Operations Contract (SFOC) is to reduce the cost of 
flying payloads on the Shuttle by adding new customers to 
reduce the costs. Mr. Black mentioned the Department of Defense 
(DOD) and commercial customers as potential resources to help 
defray the costs of operating the Shuttle.

    On March 19, 1997, the Subcommittee held its fourth 
authorization hearing ``FY98 NASA Authorization: Mission to 
Planet Earth.'' The witnesses were: Mr. William F. Townsend, 
NASA's Acting Associate Administrator for the Office of Mission 
to Planet Earth; Mr. Sam Venneri, NASA's Chief Technologist; 
Dr. Steven C. Wofsy, Gordon McKay Professor of Atmospheric and 
Environmental Sciences at Harvard University and Chairman of 
the NASA Advisory Council's Earth Systems Science Applications 
Advisory Committee; Dr. Stamatios Krimigis, Head of the Space 
Department at the Applied Physics Laboratory, Johns Hopkins 
University; and Dr. Ed Hudgins, Director of Regulatory Studies 
at the CATO Institute.

Purpose of Hearing

    This hearing was intended to explore the status and future 
of Mission to Planet Earth (MTPE) in the context of the Fiscal 
Year 1998 budget request and the outyear priorities of the 
nation's civil space program. Testimony before the Subcommittee 
focused on: (1) the goals and structure of MTPE, particularly 
the relationship of activities contained in the Fiscal Year 
1998 budget request to the outyear program design; (2) 
opportunities to realize cost savings in the program, and how 
NASA is bringing down the total cost of MTPE; (3) the types of 
improvements that can be made to MTPE as the program moves 
forward, in particular the views of the Earth Systems Science 
Applications Advisory Committee (ESSAAC) on improving the 
program's responsiveness to the scientific community; and (4) 
the Midcourse Space Experiment (MSX) and its applications to 
MTPE.

Key Issues

    Mr. William F. Townsend, NASA's Associate Administrator for 
the Office of Mission to Planet Earth, provided an overview of 
MTPE noting that program runout costs for the second series may 
be reduced by 30 percent due to planned technology infusion; 
Earth Observing System (EOS) spacecraft are smaller, cost less 
and have shorter development times; and that the commercial 
strategy for the program includes partnerships with industry 
including science data purchase and commercial remote sensing.
    Mr. Sam Venneri, NASA's Chief Technologist, discussed the 
findings and recommendations of the Reshape Implementation 
Options Study which examined ways MTPE could use advanced 
technology to design a complete space-to-ground system.
    Dr. Steven C. Wofsy, Gordon McKay Professor of Atmospheric 
and Environmental Sciences at Harvard University, discussed 
recommendations for the program from ESSAAC. He noted that 
ESSAAC was concerned with the balance of funding between space 
hardware and data analysis in the program.
    Dr. Stamatios Krimigis, Head of the Space Department at the 
Applied Physics Laboratory, Johns Hopkins University, discussed 
the Ballistic Missile Defense Organization's (BMDO) Midcourse 
Space Experiment (MSX) and its potential applications to MTPE.
    Dr. Ed Hudgins, Director of Regulatory Studies at the CATO 
Institute, conveyed the CATO Institute position that MTPE 
should not be reauthorized this year because government 
involvement in the program discourages private sector 
development of space infrastructure.

    On April 9, 1997, the Subcommittee held its fifth 
authorization hearing ``FY98 NASA Authorization: International 
Space Station.'' The witnesses were: Mr. Wilbur Trafton, NASA's 
Associate Administrator for the Office of Space Flight; Dr. 
Robert Park, Professor of Physics at the University of 
Maryland, College Park; Dr. Larry DeLucas, Director of the 
Center for Macromolecular Crystallography at the University of 
Alabama, Birmingham; and Mr. Rick N. Tumlinson, President of 
the Space Frontier Foundation.

Purpose of Hearing

    This authorization hearing was intended to familiarize 
Members with the issues surrounding Space Stations and to 
update the Subcommittee on the status of U.S. programs. 
Testimony before the Subcommittee focused on: (1)the rationale 
for supporting humans in low-Earth orbit and the International 
Space Station as a prelude to opening up the space frontier to 
all Americans; (2) whether or not spending on the International 
Space Station is the best use of taxpayer dollars for science; 
(3) the benefits of macromolecular research; and (4) the 
current status of the International Space Station program.

Key Issues

    Mr. Wilbur Trafton, NASA's Associate Administrator for the 
Office of Space Flight, informed the Subcommittee that NASA is 
rescheduling the first element launch for the International 
Space Station, originally scheduled for launch in November 
1997, for no later than October 1998. Mr. Trafton reviewed 
NASA's current contingency plans in light of the impending 
delay of Russian contributions to the International Space 
Station including: (1) modifying the FGB to enhance its 
attitude control capabilities and to make it refuelable; and 
(2) pursuing development of an existing, proven system built by 
the U.S. Naval Research Laboratory as an Interim Control Module 
(ICM). He indicated that a decision must be made by early May 
1997 to baseline into the assembly sequence either the Russian 
Service Module or an ICM for launch in December 1998. Finally, 
Mr. Trafton advised the Subcommittee that these contingency 
plans will require resources outside of the planned 
International Space Station program. Specifically, NASA will 
submit a revised operating plan for Fiscal Year 1997 that will 
reallocate $200 million from the Shuttle program to the U.S./
Russian Cooperation funding line (designated U.S./Russian 
Cooperation and Program Assurance); and will request a similar 
funding line with a placeholder amount of $100 million for 
Fiscal Year 1998.
    Dr. Robert Park, Professor of Physics, at the University of 
Maryland, College Park, argued that the International Space 
Station is yesterday's technology and its stated scientific 
objectives are yesterday's science. He maintained that the 
International Space Station stands as the greatest single 
obstacle to continued exploration of space. In closing, Dr. 
Park noted that during the recent trend of cuts to the NASA 
budget, the Station remains a fixed cost, exempted from these 
budget cuts. Additionally, cost overruns in construction have 
been accommodated by postponing what little science is planned 
for the Station.
    Dr. Larry DeLucas, Director of the Center for 
Macromolecular Crystallography at the University of Alabama, 
Birmingham, noted that scientific microgravity experiments 
should be conducted over long periods of time as opposed to 
current experiments on the Space Shuttle with durations of 1 to 
2 weeks. He maintained that carrying discoveries through to 
fruition, where research can be used for practical benefit, 
must be done as an ongoing process. Dr. DeLucas endorsed the 
International Space Station because it will allow scientists to 
have a laboratory where research can be conducted 365 days per 
year.
    Mr. Rick N. Tumlinson, President of the Space Frontier 
Foundation, recommended having a facility in space in which 
Americans can conduct experimentation on new products, new 
services, and new ideas. He advocated turning the International 
Space Station over to private interests to begin operating it 
in the same way that industry operates buildings, ships, ports, 
and airports. In closing, Mr. Tumlinson maintained that a 
successful Space Station will use a partnership between 
government and the private sector.

    On April 10, 1997, the Subcommittee held its sixth and 
final authorization hearing ``FY98 NASA Authorization: Science 
Programs.'' The witnesses were: Dr. Wesley T. Huntress, Jr., 
NASA's Associate Administrator for the Office of Space Science; 
Dr. Arnauld E. Nicogossian, NASA's Associate Administrator for 
the Office of Life and Microgravity Sciences and Applications; 
Dr. Neal Pellis, NASA's Head of the Biotechnology Program at 
Johnson Space Center; Dr. Claude R. Canizares, Chair of the 
Space Studies Board at the National Research Council and 
Director of the Center for Space Research at Massachusetts 
Institute of Technology; Dr. Eugene Shoemaker, Scientist 
Emeritus at the U.S. Geological Survey; and Dr. V. Reggie 
Edgerton, Vice Chair of the Physiological Science Department at 
the University of California Los Angeles.

Purpose of Hearing

    This hearing reviewed the funding request for the Fiscal 
Year 1998 NASA budget request for the Office of Space Science 
and the Office of Life and Microgravity Sciences and 
Applications. Testimony before the Subcommittee focused on: (1) 
the Origins program, designed to answer the fundamental 
question of our place in the universe; (2) future plans for the 
exploration of Mars; (3) the study of near Earth objects and 
orbital debris; (4) the outyear funding for Mission Operations 
and Data Analysis; (5) the benefits of research in space; (6) 
microgravity research on nerve cell regeneration; (7) the 
benefits of bioreactor research; and (8) life and microgravity 
research opportunities on the Shuttle in the wake of a Station 
delay.

Key Issues

    Dr. Wesley T. Huntress, Jr., NASA's Associate Administrator 
for the Office of Space Science, discussed five near-term 
objectives for NASA's science initiatives: (1) to open up a new 
area in exploring the surfaces of planetary bodies such as 
Mars, comets, and asteroids; (2) to conduct extensive 
investigations of the surface of Mars; (3) to complete the 
initial reconnaissance of our solar system with a mission to 
Pluto; (4) to invest in the technologies required to develop a 
successor to the Hubble Space Telescope; and (5) to invest in 
technologies required to develop new techniques that we will 
need in order to search for Earth-like planets around other 
stars.
    Dr. Arnauld E. Nicogossian, NASA's Associate Administrator 
for the Office of Life and Microgravity Sciences and 
Applications, mentioned that because of the delay in the 
assembly sequence of the International Space Station, NASA has 
started studying remedial actions which include the use of 
Shuttle flights during the early years of Station assembly. 
These flights would provide the research community with 
continued access to space until transition to the Space Station 
is possible.
    Dr. Claude R. Canizares, Chair of the Space Studies Board 
at the National Research Council and Director of the Center for 
Space Research at Massachusetts Institute of Technology, 
reiterated the need for additional Shuttle flight research 
opportunities because of developing problems with the 
International Space Station. He insisted that space research 
provides innumerable benefits that enhance the quality and 
character of life for the American public.
    Dr. Eugene Shoemaker, Scientist Emeritus at the U.S. 
Geological Survey, discussed near-Earth asteroids and research 
that NASA is supporting at three separate institutions that 
survey Earth crossing asteroids. During his testimony, Dr. 
Shoemaker argued for the necessity of asteroid research and 
stated that a $4 million annual budget would be required in 
order to detect 90 percent of the Earth crossing asteroids 
larger than one kilometer in diameter.
    Dr. Neal Pellis, Head of the Biotechnology Program at 
NASA's Johnson Space Center, discussed the benefits of 
biotechnology and NASA's goal of engineering human tissue, 
starting from individual cells, using the microgravity 
environment and advanced technology such as the bioreactor.
    Dr. V. Reggie Edgerton, Vice Chair of the Physiological 
Science Department at the University of California Los Angeles, 
discussed different strategies for researching the field of 
neural repair. He argued that continued investment in this type 
of research is critical to efforts to optimize the recovery of 
elderly individuals who suffered neural dysfunctions and neural 
trauma patients.

              IV. Summary of Major Provisions of the Bill

    On February 6, 1997, the President transmitted to Congress 
a request of $13,500,000,000 for NASA for FY 98. The Committee 
recommends an authorization level of $13,881,800,000 for FY 98. 
The President's FY 98 request for NASA contained an estimate 
for FY 99 of $13,410,000,000. The Committee recommends an 
authorization level of $13,925,800,000 for FY 99. The Committee 
recommends an authorization level of $6,000,000 in FY 98 and FY 
99 for the Office of Commercial Space Transportation. The 
Committee recommends an authorization level of $500,000 in FY 
98 and FY 99 for the Office of Space Commerce.
    The major provisions of the bill are the following:

        Authorizes appropriations for all NASA programs;
        Authorizes appropriations for the Office of Commercial 
        Space Transportation and the Office of Space Commerce;
        Prohibits funds, or in-kind payments from being 
        transferred to Russia for work on elements of the 
        International Space Station that Russia pledged to 
        provide at its expense. Requires NASA to develop a 
        contingency plan and submit it to Congress. This plan 
        shall include: (1) decision points for removing or 
        replacing Russian Government elements that lie in the 
        critical path; (2) the costs of implementing such 
        decision(s); and (3) the cost of removing or replacing 
        a Russian Government element after the decision point 
        has passed;
        Requires a monthly certification from the NASA 
        Administrator including: (1) whether the Russians have 
        performed their expected work necessary to complete the 
        International Space Station by the end of calendar year 
        2002; (2) the Administrator's judgment about whether 
        the Russians will perform during the succeeding month; 
        and (3) the Administrator's judgment that the first 
        element launch will occur by October 31, 1998;
        Requires the President to decide by August 1, 1997, 
        whether or not to proceed with permanent replacement of 
        the Service Module and other Russian critical path 
        items. The President is required to certify the reasons 
        for the decision and the costs of such a decision. If 
        the President decides after August 1, 1997, to replace 
        an element, the President must certify the cost 
        implications of not making such a decision prior by 
        August 1, 1997;
        Requires NASA to certify that Mir meets or exceeds U.S. 
        safety standards, as determined by an independent 
        review, before sending another astronaut on a long-term 
        stay on Mir;
        Requires the NASA Administrator to report on projected 
        restructuring activities, by fiscal year, and the 
        President to submit a proposal for enabling legislation 
        to carry out actions in the Administrator's report;
        Amends the Commercial Space Launch Act to establish a 
        statutory framework for the Office of Commercial Space 
        Transportation to license commercial reentry 
        activities;
        Requires the NASA Administrator to submit a study to 
        Congress that identifies and examines the opportunities 
        for commercial ventures to play a role in International 
        Space Station activities including operation, use, 
        servicing or augmentation;
        Creates procurement initiatives to encourage NASA to 
        take advantage of innovations of commercial providers;
        Encourages NASA to purchase space science data from 
        commercial providers instead of building complete 
        systems to generate the data;
        Encourages the NASA Administrator to acquire Earth 
        science data from U.S. commercial providers; and 
        requires a study on how the scientific requirements of 
        MTPE can be met by commercial providers;
        Requires the NASA Administrator to prepare for the 
        potential privatization of the Space Shuttle program;
        Establishes the Office of Space Commerce within the 
        Department of Commerce with details on the Office's 
        primary responsibilities;
        Requires the NASA administrator to certify that $50 
        million has been made available for commercial Earth 
        science data buys before funds can be used for Earth 
        System Science Pathfinders;
        Requires NASA to submit a report on the cost-
        effectiveness of the single cost-plus contract approach 
        of the Consolidated Space Operations Contract versus a 
        multiple, fixed-price contract approach;
        Prohibits funds from being used to pay the tuition or 
        living expenses of NASA employees attending the 
        International Space University;
        Requires a report on agreements with foreign entities 
        to transfer the development of Space Station hardware 
        baselined to be provided by the United States and the 
        impact of these agreements on U.S. operating costs and 
        U.S. utilization shares;
        Requires a report on threats to the core system of the 
        Earth Observing System Data Information System;
        Requires NASA to buy commercially available space goods 
        and services, to the fullest extent feasible, and that 
        NASA shall not conduct activities that preclude or 
        deter commercial space activities (except for national 
        security or public safety);
        Prohibits NASA from entering into agreements or 
        contracts with foreign governments which grant the 
        foreign government the right to recover profit in the 
        event that the agreement or contract is terminated.

           V. Section-By-Section Analysis and Committee Views

Section 1. Short Title; Table of Contents

    This Act may be referred to as the ``Civilian Space 
Authorization Act, Fiscal Years 1998 and 1999.''

Section 2. Findings

Sectional Analysis and Recommendation

    The Congress finds that: NASA should pursue actions and 
reforms to reduce institutional costs; NASA must return to its 
role as the nation's leader in basic scientific, air and space 
research; the United States is on the verge of advancing and 
creating various technologies that could radically alter the 
manner in which the government approaches its space mission; a 
free and competitive market in privately developed and operated 
space transportation is important to fulfilling the majority of 
the Federal Government's requirements; NASA should promote the 
commercial providers' pursuit of development of advanced space 
transportation technologies; the Federal Government should 
invest in the types of research and innovative technology in 
which U.S. commercial providers do not invest, while avoiding 
competition with activities in which commercial providers do 
invest; international cooperation in space exploration and 
science should be pursued when it satisfies particular 
conditions; and NASA and the Department of Defense can reduce 
the cost of space missions by more effectively leveraging their 
mutual capabilities.

Section 3. Definitions

    Throughout the Act and Committee report, the term 
``Administrator'' refers to the Administrator of the National 
Aeronautics and Space Administration and the phrase 
``institution of higher education'' refers to the meaning of 
this phrase given in section 1201(a) of the Higher Education 
Act of 1965 (20 U.S.C. 1141(a)). ``Commercial provider'' refers 
to individuals providing space-related services or activities 
whose organization is not under the primary control of federal, 
state, local or foreign governments. ``State'' refers to the 
States of the Union, the District of Columbia, and any other 
commonwealth, territory, or possession of the United States. 
``United States commercial provider'' refers to a commercial 
provider which is more than 50 percent owned by U.S. nationals 
or a subsidiary of a foreign company and the Secretary of 
Transportation makes particular findings about the subsidiary 
and the foreign country in which the company is incorporated or 
organized.

Title I--Authorization of Appropriations

Subtitle A--Authorizations

Section 101. Human Space Flight

Sec. 101(1). The Space Station Program

Sectional Analysis and Recommendation

    $2,121,300,000 in FY 98 and $2,109,200,000 in FY 99 are 
authorized for the International Space Station (ISS). Of this 
amount, $400,500,000 in FY 98 and $496,200,000 in FY 99 shall 
only be for Space Station research or for activities conducted 
by the Office of Life and Microgravity Sciences and 
Applications. These funds shall be administered by the Office 
of Life and Microgravity Sciences and Applications.
            Committee Views
    The Committee fully authorizes the request for Space 
Station funding in Fiscal Years 1998 and 1999. Within this 
authorization, however, $400,500,000 in Fiscal Year 1998 and 
$496,000,000 in Fiscal Year 1999 of research funding are fenced 
for scientific purposes. These are the respective funding 
levels for Station research as baselined in the Fiscal Year 
1997 request. In the past, NASA has taken funding from Space 
Station science accounts and transferred those funds to the 
Station for hardware development. The Fiscal Year 1998 budget 
request reflected this practice when it cut the baseline 
science program to $245,100,000 in Fiscal Year 1998, shifting 
$155,400,000 from Station science payloads to hardware 
development. The agency actually shifted $235,000,000 from 
Station science payloads to hardware development, and then 
moved $17.3 million for experiments from the U.S.-Russia 
Cooperation budget line into the research line. Similarly, the 
agency also moved $62.3 million from a utilization support line 
into the research line. In the Rohrabacher-Cramer Amendment to 
the bill, the Committee further decided that the Office of Life 
and Microgravity Sciences and Applications should administer 
the research accounts of the International Space Station. NASA 
views the science community as the ultimate customer for the 
International Space Station, a view with which the Committee 
concurs. In that light, it only makes sense to direct the 
customer to manage his/her own affairs and resources.
    The Committee believes that the ability to do life and 
microgravity research is the principal reason for building the 
International Space Station. Fully funding the Station's 
science accounts must be NASA's first priority in developing 
and operating this program. Consequently, the Committee is 
holding NASA to its promise that the International Space 
Station will be a world-class laboratory in space. If the 
International Space Station runs into development problems or 
is forced to alter the design due to Russia's inability to 
provide its promised Station elements, the Committee would be 
inclined to consider supplemental funding before it would agree 
to transfer funds from Station science payloads to hardware 
development.
    With science as its principal goal, the Committee believes 
that the International Space Station is vital for taking life 
and microgravity research to their next level of complexity. 
Progress in these areas promises huge scientific returns, 
giving the Space Station a vital role in increasing human 
knowledge and applying it to improve life on Earth.
    Additionally, the International Space Station marks a new 
opportunity to promote international cooperation in space. This 
goal, however, is secondary to the Station's main focus on 
research. When the goal of promoting multinational ventures in 
space conflicts with the ability to do world-class research to 
benefit all of humanity, the multinational venture must give 
way to the needs and requirements of science.
    The Committee accepted the Administration's initiative in 
bringing Russia into the International Space Station program, 
largely due to Russia's vast experience and expertise in human 
space flight and the desire to promote international 
cooperation in space. It was believed that Russia's addition to 
the Space Station program would best serve the program if 
Russia's role was enhancing, not enabling. NASA, however, 
placed Russia in the critical path for completing the Space 
Station, making the international partnership dependent on a 
country experiencing a difficult transition from communism to 
freedom and democracy. Because of that transition and the 
difficulties it has created for the Russian economy, Russia has 
been unable to meet its commitments to the international 
partnership to fund development of the International Space 
Station. Thus Russia's role in the International Space Station 
currently threatens the ability to build a successful and 
scientifically useful laboratory in space. Just the recent 
history of Russia's participation in the program illustrates 
the problems Russia is experiencing.
    During the winter of 1995-1996, when the Russian Space 
Agency (RSA) was not receiving its operating budget from the 
Russian government in either an adequate amount or timeframe, 
the Russians proposed redesigning the International Space 
Station. Instead of building the new facility as planned and 
agreed to, the Russians wanted to attach elements being built 
by the partners to their Space Station, Mir. NASA rejected this 
option, but agreed to add two flights in the Phase I portion of 
the program, in which the Space Shuttle visits the Mir Space 
Station. Russia has since become dependent on these Shuttle-Mir 
flights to keep the Mir aloft. Unfortunately, this did not 
resolve Russia's inability to pay the Russian Space Agency or 
Russian Space Station contractors.
    During January 1996, Chairman Sensenbrenner and Chairman 
Jerry Lewis of the House Appropriations Committee's 
Subcommittee on VA/HUD/Independent Agencies traveled to Russia 
for discussions about its funding problems. The Russians 
revealed that the Service Module, the first element for which 
the Russian government was responsible, was some 6 months 
behind schedule, but that the April 1998 launch date could be 
met if funding were forthcoming from the Russian government. In 
March 1996, NASA Administrator Dan Goldin testified before a 
hearing of the Subcommittee on Space and Aeronautics that the 
problem with Russia would be resolved one way or the other 
within a four-to-six week period, or by the middle of May 1996. 
This date was then pushed back until after Russia's June 1996 
Presidential elections, after which NASA indicated that the 
Russian Space Agency expected to receive its budget from the 
Russian government.
    The problem was not addressed in May, but in July 1996, at 
a meeting of the Gore-Chernomyrdin Commission, Vice President 
Gore received written promises that Russia would meet several 
milestones in 1996 and 1997 as a demonstration of its good 
faith effort to resolve these delays. Nevertheless, the Russian 
government promptly missed those milestones and declared in 
December 1996 that the Service Module was at least 8 months 
behind schedule, a delay that could not be recovered to meet 
the April 1998 launch date. Instead, RSA announced that it 
might launch the Service Module in December 1998.
    During February 6-8, 1997 the Gore-Chernomyrdin Commission 
again convened. At that meeting, Russian Prime Minister Viktor 
Chernomyrdin promised Vice President Gore that the equivalent 
of $100 million would be made available to the Russian Space 
Agency by February 28th. Furthermore, the Russian Prime 
Minister promised that the government would develop a schedule 
to cover RSA funding during the course of 1997. Finally, he 
asked Yuri Koptev, Director General of the Russian Space 
Agency, to look into launching the Service Module in October/
November of 1998, a six-month instead of an eight-month delay. 
None of these promises had been kept by the time of the 
introduction of this bill (April 10, 1997). The Committee on 
Science held a hearing on the status of Russian participation 
in the program on February 12, 1997 to review these promises.
    Science Committee Chairman Sensenbrenner, Space and 
Aeronautics Subcommittee Chairman Dana Rohrabacher and 
Subcommittee Vice Chairman Dave Weldon traveled to Russia 
during the week of February 16, 1997, to determine the status 
of the Russian program for themselves. It did not appear that 
much work had been done on the Service Module since Chairman 
Sensenbrenner's January 1996 trip. Moreover, the Congressional 
delegation determined that the Russian government was not 
budgeting funds to be transferred to the Russian Space Agency 
in 1997, but that it was preparing loan guarantees that would 
give RSA permission to seek its operating budget by approaching 
commercial banks and attempting to borrow funds. Finally, the 
delegation obtained a copy of a decree issued by Prime Minister 
Chernomyrdin on February 10th. The decree did not release any 
funds to the Russian Space Agency. Instead, it called for the 
government to develop--by March 10, 1997--a schedule for the 
RSA to receive funds during the course of 1997, presumably 
through the aforementioned loans and transfers from the Russian 
government. The Subcommittee held NASA's Posture Hearing on 
March 4, 1997, at which time NASA Administrator Dan Goldin 
announced he would send a team to Russia to explore the Russian 
budget situation. That team, led by Lt. General Thomas 
Stafford, was in Russia during the week of March 23, 1997.
    The Stafford team discovered that Russia had not issued a 
schedule of payments by March 10th, as Chernomyrdin's February 
10th decree indicated. Furthermore, RSA still had not received 
the equivalent of $100 million that Prime Minister Chernomyrdin 
promised Vice President Gore that RSA would receive by February 
28th. While the Stafford team was in Russia on March 25th, the 
First Deputy Prime Minister and Finance Minister, Anatoly 
Chubais, promised that the Russian government would make 400 
billion rubles ($69.6 million) available to the Russian Space 
Agency in April and 400 billion rubles ($69.6 million) in May. 
The Stafford team was told that a schedule for payment of the 
remaining one trillion rubles due in 1997 would be worked out 
at a later date. In short, Russia promised yet again that it 
would meet its obligations if the United States would wait yet 
another few months. In the past, such promises have not been 
kept.
    On April 9, 1997 the Subcommittee on Space and Aeronautics 
held an authorization hearing on the International Space 
Station. At that hearing Wilbur Trafton, NASA's Associate 
Administrator for Space Flight, announced that the first 
element launch originally scheduled for November 1997, would be 
delayed by up to 11 months due to Russia's failures to honor 
its commitments. Meanwhile, NASA itself would not decide until 
May whether to baseline the Service Module itself or an Interim 
Control Module (ICM) designed and created by the Naval Research 
Laboratory for a December 1998 launch. In order to baseline the 
Service Module, NASA requires the following conditions to be 
met: (1) the Russian government has to pay the Russian Space 
Agency the promised 400 billion rubles in April and 400 billion 
rubles in May; (2) the General Design Review of the Service 
Module has to take place; and, (3) the Russian subcontractors 
have to make assurances that they will be able to meet the 
December 1998 launch date. This decision date raised the 
immediate concern among Committee members that NASA could 
decide to baseline the Service Module in May 1997, but Russia 
might still experience problems after that decision had been 
made, requiring yet another delay in the Station schedule. 
Furthermore, Committee members were concerned about NASA's 
plans to finance these activities by transferring $200 million 
in Shuttle funds to the Space Station during the remainder of 
Fiscal Year 1997, particularly given recent events in the 
Shuttle program that suggest safety improvements are necessary 
to the Shuttle fleet. Finally, NASA asked for $100 million in 
Fiscal Year 1998 to be placed into a ``U.S.-Russian Cooperation 
and Assurance'' line within the budget. However, NASA was 
unable to provide any information about offsets within the NASA 
budget for this funding and could not assure the Committee that 
the funding would be adequate to undertake the steps laid out 
at the hearing.
    The International Space Station cannot afford such 
continued instability, and Administration efforts to address 
these problems have not resulted in any resolution. Instead, 
NASA has proposed a series of temporary, stop-gap measures such 
as the Interim Control Module and placing habitation 
capabilities in the U.S. laboratory to deal with Russian 
delays. These measures enable the agency to continue assembling 
the Station but either fail to permanently resolve the issue of 
dependence on Russia and/or threaten the research capacity of 
the facility. The Committee is extremely concerned that NASA 
does not yet appear to have credible contingency plans in place 
in the event of the need to permanently replace the Service 
Module and/or other Russian elements in the critical path. 
Ultimately, if the trend of Russian participation continues and 
the Russian government never delivers on its obligations, it 
would be preferable and more cost effective to have plans for 
that contingency in place now, rather than attempt to redesign 
the Station in the midst of assembly. As Chairman Sensenbrenner 
pointed out at the Subcommittee on Space and Aeronautics 
Subcommittee's April 9, 1997, Station authorization hearing, it 
is time to do now what should have been done three years ago.
    Although the Committee strongly supports the International 
Space Station, the program is clearly headed for trouble if the 
current situation remains unresolved. The inability or 
unwillingness to hold the Russian government to its obligations 
and promises has cost the program up to 11 months in schedule 
slips. It is time for NASA to develop credible contingency 
plans with clearly defined decision points.

Sec. 101(2) and (3). Space Shuttle Operations; Space Shuttle Safety and 
        Performance Upgrades

Sectional Analysis and Recommendation

    In FY 98 $2,494,400,000 are authorized for Space Shuttle 
operations and $483,400,000 are authorized for safety and 
performance upgrades. In FY 99 $2,625,600,000 are authorized 
for Space Shuttle operations, and $392,900,000 are authorized 
for safety and performance upgrades.

Program Description

    The objective of the Space Shuttle program is to support 
the nation's launch requirements while balancing the goal of 
mission accomplishment with the primacy of program safety. 
Because of its unique capabilities, the Space Shuttle remains 
the cornerstone of America's space program. The Shuttle Orbiter 
is the world's first reusable space vehicle which can be 
reconfigured for a variety of payloads and missions. In 
addition to the transportation of personnel and equipment to 
orbit, the Space Shuttle stands alone among the world's space 
systems, due to its ability to retrieve material from space for 
repair or return to Earth. The Space Shuttle will serve as the 
primary transportation system for the assembly and operation of 
the International Space Station.
            Committee Views
    The current focus of the Space Shuttle Safety and 
Performance Upgrade program is primarily on meeting the 
requirements of the International Space Station assembly 
sequence. Many of these upgrades are intended to improve the 
performance of the Shuttle required by the increase in the 
inclination of the Space Station orbit to 51.6 degrees, a 
change which was made in order to accommodate the participation 
of the Russians. A portion of this upgrade program is intended 
to prevent damage to the orbiters by the ever-increasing threat 
of collision with orbital debris, especially during the 
assembly sequence, where vulnerable areas of the orbiter will 
be exposed to greater hazards. Another focus of the upgrade 
program is avionics and fuel cells.
    NASA has set a requirement to reduce the risk of losing a 
Shuttle, stating that its upgrade program will enable safe and 
efficient Shuttle operations during the Space Station assembly 
and operation. The Aerospace Safety Advisory Panel reported to 
the President last fall that safely accomplishing this goal may 
require surge operations increasing the annual launch rate to 8 
or 9 missions ``which may be feasible with additional 
resources.'' Further, the Chief Executive Officer of United 
Space Alliance testified on March 13, 1997 that accurate 
estimates on cost savings this early in the current six-year 
contract are difficult to make. This testimony suggests 
transfer of funding from the Shuttle program to other NASA 
programs should be given close scrutiny by the agency as to the 
impact on safety.
    The Committee has met the President's request for the 
Safety and Performance Upgrade program, and encourages NASA to 
use any cost savings in the Shuttle program for an accelerated 
upgrade schedule.

Sec. 101(4). Payload and Utilization Operations

Sectional Analysis and Recommendation

     $247,400,000 in FY 98 and $178,600,000 in FY 99 are 
authorized for Payload and Utilization Operations.

Program Description

    This program supports the processing and flight of Shuttle 
payloads.
            Committee Views
    The en bloc amendment offered by Mr. Rohrabacher and Mr. 
Cramer and adopted at full committee markup (4/16/97), added 
$20 million to this budget line in FY 98 and increased the FY 
98 total authorization for NASA accordingly. Due to delays in 
the assembly schedule of the International Space Station, and 
as a result of the redirection of funding away from science 
programs to offset the costs associated with those delays, 
$20,000,000 has been added to this budget line to allow NASA to 
undertake continuing life science and microgravity activities 
on the Space Shuttle. This will contribute to the productivity 
of microgravity research capability in the near term as well as 
when the Space Station becomes operational.

Section 102. Science, Aeronautics, and Technology

Sec. 102(1) Space Science

Sectional Analysis and Recommendation

    $2,079,800,000 in FY 98 and $2,085,400,000 in FY 99 are 
authorized for Space Science. This authorization represents an 
increase of $36,000,000 in FY 98 and $60,000,000 in FY 99 over 
the President's request.

Program Description

    There are two general science areas within space science: 
(1) physics and astronomy and (2) planetary exploration.
            Committee Views
    The Committee considers space science to be one of the core 
science programs at NASA, and thus, one of the highest priority 
missions of NASA. The runout for Space Science in the FY 97 
budget request was on a downward slope. In FY 98, the runout 
for space science is healthy and encouraging to those who 
support basic research.

Gravity Probe-B

    Gravity Probe-B (GP-B) is a science mission designed to 
test Einstein's theory of General Relativity. This is one of 
the few space missions NASA has planned with relevance to 
fundamental physics. The Committee encourages NASA to continue 
funding GP-B from FY 99 through completion at the agreed to 
April 1996 Program Cost Commitment levels.

Solar-B

    Solar-B will be a collaborative mission with the Japanese. 
Solar-B is the next mission in the planned series of Solar 
Terrestrial Probes. Solar-B will complement NASA's current set 
of solar observing spacecraft including NASA's participation in 
the European Space Agency's SOHO mission. The intent of Solar-B 
is to give scientists a better understanding of space weather. 
The funding included for Solar-B will allow NASA to place 
instruments on board the spacecraft.

Near Earth Object Survey

    $3,400,000 in FY 98 and $3,400,000 in FY 99 are authorized 
for the Near Earth Object (NEO) Survey. The Committee has long 
supported efforts to detect and catalogue near Earth objects, 
such as asteroids and comets, which may cross the plane of 
Earth's orbit and present an impact threat to the planet. 
Currently, NASA's plans for NEO detection will take some thirty 
years to complete. The Committee report (H. Rept. 103-654) on 
NASA's FY 95 authorization directed NASA to draft a program 
plan and cost estimate for cataloging near-Earth objects within 
ten years. In response, the Near Earth Object Survey Working 
Group, assessed several options for increasing the pace of NEO 
detection. One of the recommendations was to upgrade the Air 
Force Ground-based Optical Deep Space Surveillance System 
(GEODSS) and several large telescopes on Mt. Haleakali in 
Hawaii with Charged-Coupled Device (CCD) imagers being 
developed at the Lincoln Laboratory. $3,400,000 is provided in 
this bill each year to implement this upgrade of GEODSS and 
accelerate the Near Earth Object Survey. The Committee 
acknowledges and agrees with NASA's desire not to be the lead 
agency for space surveillance. However, NASA can do more to 
support the Air Force in its space surveillance mission and the 
Committee encourages NASA to baseline at least this level of 
funding to support Air Force space surveillance activities 
beyond FY 99.

Clementine 2

    In FY 96, Congress initiated the Clementine 2 mission in 
the Air Force budget as a follow-up to the Defense Department's 
first Clementine mission in 1994. The first mission was an 
advanced concept technology demonstration (ACTD) which 
demonstrated advanced small satellite technology in space. 
While proving these technologies in space, the first Clementine 
mission also obtained the first complete map of the moon, 
giving scientists a low-cost opportunity to do science on a 
Defense Department technology mission. Like its predecessor, 
Clementine 2 is an ACTD. Clementine 2 will visit one or more 
near-Earth asteroids and launch probes into their interior. The 
resulting debris cloud can then be analyzed to determine the 
chemical content of the asteroid. NASA's Deputy Associate 
Administrator for the Space Shuttle, Steve Oswald, testified 
before the Space and Aeronautics Subcommittee on March 13, 1997 
that NASA has an interest in launching the Clementine 2 
spacecraft for the Air Force. The Committee encourages NASA to 
continue to examine the feasibility of such a mission. Dr. 
Eugene Shoemaker, co-discoverer of the Shoemaker-Levy Comet and 
chief scientist for both Clementine missions, testified before 
the Subcommittee on Space and Aeronautics on April 10, 1997 
that Clementine 2 is the only mission in planning that will 
impact and characterize an asteroid directly. In order to 
ensure that this opportunity to do science is utilized and that 
the scientific community has the opportunity to leverage the 
Air Force investment in Clementine 2, the Committee directs 
NASA to commit $5 million in FY 98 and $5 million in FY 99 for 
scientific support to the mission. In addition to the low-cost 
science opportunity that Clementine 2 offers, the Committee 
believes that the mission's advanced technologies may prove 
useful to NASA in the future. Thus, NASA will benefit 
indirectly from the mission.

Mission Operations and Data Analysis

    The Committee believes that with the amount of spacecraft 
in orbit, an increase in the Mission Operation and Data 
Analysis (MO&DA;) program is essential to properly analyze the 
data. The MO&DA; account in the Office of Space Science 
currently supports 22 planetary, astrophysics and space physics 
missions and plans to be flying 29 spacecraft by the end of FY 
98. In contrast, 18 missions were flown at the beginning of FY 
95. The appropriated amount for MO&DA; in FY 95 was $544.6 
million. In FY 98 the request is $507.4 million. On average, 
the cost for analyzing mission data is about one third less 
than it was in FY 95. The purpose of the MO&DA; program is to 
maximize the scientific return from NASA's investment in 
spacecraft and other data selection sources. Funding supports 
satellite operations during the performance of the core 
missions, extended operations of selected spacecraft, and 
ongoing analysis of data after the usable life of spacecraft 
has expired. The increase in MO&DA;, $22 million in FY 98 and 
$38 million in FY 99, is provided specifically for data 
analysis.

Astronomy and Astrophysics

    Ms. Lofgren offered and the full committee agreed to the 
following report language.
    The Committee is concerned over the plans for long term 
support for basic research in astronomy and astrophysics. 
Although the first priority recommended by the ``Bahcall 
Report'' on the future of astronomy addressed core funding for 
basic research grants and for operation and maintenance of 
existing facilities, these have generally lagged in agency 
planning.
    In addition, the Committee is concerned over the extent to 
which the major funding agencies, NSF and NASA, have 
coordinated their respective plans for basic research. NASA has 
taken an increasing share of basic research responsibility in 
astronomy because of the need to complement major facility 
class missions such as the Hubble Space Telescope, the Advanced 
X-Ray Astrophysics Facility and the Space Infrared Telescope. 
However, basic research support associated with these missions 
will be episodic in nature and directly associated with the 
mission lifetimes. NSF must address more fully the need to 
provide ongoing stable and balance support for basic research. 
The Committee urges NSF and NASA to conduct a joint review of 
the division of responsibilities and funding for core support 
in astronomy and astrophysics and to develop a plan which 
addresses the long term needs of the science community in this 
area.

Sec. 102(2) Life and Microgravity Sciences and Applications

Sectional Analysis and Committee Recommendation

    $234,200,000 in FY 98 and $249,800,000 in FY 99 are 
authorized for the Office of Life and Microgravity Sciences and 
Applications. $20,000,000 in FY 98 will augment funds to 
provide additional Space Shuttle life science and microgravity 
flight opportunities. $2,000,000 in each fiscal year are for 
breast and ovarian cancer research.

Program Description

    The Office of Life and Microgravity Sciences and 
Applications (OLMSA) conducts the basic research required to 
enable human space flight and is responsible for the health of 
astronaut crews who live and work in space. OLMSA is 
responsible for carrying out the NASA-National Institutes of 
Health (NIH) Protocol, which has served to make space-based 
biomedical research relevant to other basic health research.
            Committee Views
    The en bloc amendment offered by Mr. Rohrabacher and Mr. 
Cramer and adopted at full committee markup (4/16/97), added 
$20 million to this budget line in FY 98 and increased the FY 
98 total authorization for NASA accordingly.
    The Space Station research function of OLMSA is now under 
the management of the Human Exploration and Development of 
Space Enterprise. The long-term impact of this short term 
vision on OLMSA may be the undesired distancing of NASA's 
microgravity research activities from the scientific and 
biomedical research communities on which these activities rely 
for high quality basic research. This bill places the Space 
Station research funding under the administration of OLMSA.
    The Committee views with concern the growing gaps in life 
and microgravity science and applications flight opportunities 
prior to the commencement of Space Station operations. The 
seriousness of the situation was attested to by several of the 
witnesses at the April 10, 1997 hearing of the Subcommittee on 
Space and Aeronautics. The Committee believes that failure to 
maintain sufficient flight research activities over the 
interval prior to the installation of the Space Station's full 
utilization capabilities would have a deleterious impact on the 
nation's ability to capitalize on its intended research 
investment in the Space Station. As a result the Committee has 
added $20,000,000 to the Payload Utilization and Operations 
budget line and $20,000,000 to the Life and Microgravity 
Sciences and Applications budget line. The Committee believes 
that with international participation and efficient reuse of 
existing hardware, those funds could support flight research 
opportunities in each of the next three years.
    The Committee supports the recent formation of the National 
Space Biomedical Institute in Houston, Texas. However, to be 
successful, it is imperative that the Institute establish a 
strong management plan as soon as possible. In addition, the 
Institute needs to develop a transition plan to deal with the 
planned decreases in NASA's funding support. NASA will support 
the biomedical institute at approximately $10 million a year 
for the first four years. At the beginning of the fifth year, 
NASA will decrease funding by ten percent annually until the 
core funding is at 60 percent of the initial level. Additional 
funding for the institute will be procured through grants 
awarded from NASA and other government agencies, universities, 
and also from private industry. The Committee feels that if 
proper funding is not forthcoming from outside sources, 
valuable research will be lost.

Sec. 102(3) Mission to Planet Earth

Sectional Analysis and Recommendation

    $1,417,300,000 in FY 98 and $1,446,300,000 in FY 99 are 
authorized for Mission to Planet Earth. $50,000,000 in each 
fiscal year are for commercial Earth science data purchases. 
$8,000,000 in FY 98 are for continuing operations of the 
Midcourse Space Experiment. $10,000,000 in each fiscal year are 
for the lightning mapper.

Program Description

    Mission to Planet Earth (MTPE) is NASA's contribution to 
the Interagency U.S. Global Change Research Program and its 
largest component. The program consists of a core system known 
as the Earth Observing System (EOS). EOS, in turn, consists of 
three series of three remote sensing satellites each, the AM 
series, which crosses the equator in the morning, the PM 
series, which crosses the equator in the afternoon, and the 
Chem series, which looks at atmospheric constituents and 
chemical behavior. The ground element of the EOS system is 
known as the Earth Observing System Data and Information System 
(EOSDIS) and is the most complex civil data management system 
ever designed. MTPE was initiated in 1990 and is expected to 
run through 2022. Its cost was estimated by the U.S. General 
Accounting Office to be $33 billion between FY 91 and FY 22 
although NASA believes a lower life cycle cost will be 
realized. Collectively, EOS comprises about two-thirds of 
MTPE's budget.
    In addition to EOS, Mission to Planet Earth has several 
small satellite programs intended to do research into specific 
environmental phenomenon over short timeframes. These include 
Flights of Opportunity, which may involve placing a particular 
Earth remote sensing sensor on any available and appropriate 
orbital platform, and the Earth System Science Pathfinder 
(ESSP) program, which involves a series of low-cost missions 
designed to give MTPE the flexibility that EOS lacks.
            Committee Views
    NASA has made progress in implementing past recommendations 
by the Committee to reduce the cost of Mission to Planet Earth 
through new technology, improved coordination, and leveraging 
of private sector investments in remote sensing and information 
capabilities. NASA has pledged that it will reduce the annual 
cost of Mission to Planet Earth by 30 percent per year after 
the year 2000. While the Committee welcomes these improvements, 
their success will ultimately be measured by NASA's consistent 
commitment to them. With that in mind, it was disturbing to 
note that the Commercial Earth Science Data Purchase Program 
was discontinued in the FY 98 budget request and that the 
budget of the Commercial Remote Sensing Program (CRSP) at 
Stennis Space Center was cut, even though the total MTPE budget 
is increasing and the CRSP has been given more 
responsibilities.
    For FY 98, the Committee directs NASA to continue the 
Commercial Earth Science Data Purchase Program at Stennis Space 
Center and sets aside $50,000,000 for this purpose. 
Furthermore, the Committee directs NASA to take over operations 
of the Midcourse Space Experiment (MSX) satellite for the 
purposes of determining how this new technology can be used in 
the program's baseline architecture and sets aside $8,000,000 
for this program. The en bloc amendment offered by Mr. 
Rohrabacher and Mr. Cramer and adopted at full committee markup 
(4/16/97), requires that prior to the obligation of funds, NASA 
shall conduct an independent scientific review of MSX data 
products to determine that they meet Mission to Planet Earth's 
science requirements.
    The en bloc amendment offered by Mr. Rohrabacher and Mr. 
Cramer and adopted at full committee markup (4/16/97) 
authorized, from within existing funds, $10 million in FY 98 
and FY 99 for the ``lightning mapper.'' The lightning mapper is 
a technology development program intended to create a follow-on 
to NASA's Lightning Imaging Sensor (LIS). Ideally, this follow-
on mapper will become an interagency project that could serve 
both research and operational requirements. As is the case with 
MSX, an independent review of the scientific requirements for 
the lightning mapper is required prior to obligating any funds.

Sec. 102(4) Aeronautics and Space Transportation Technology

Sectional Analysis and Recommendation

     $1,769,500,000 in FY 98 and $1,816,400,000 in FY 99 are 
authorized for Aeronautics and Space Transportation Technology 
of which Aeronautical Research and Technology is $915,100,000 
in FY 98 and $832,400,000 in FY 99; Advanced Space 
Transportation is $696,600,000 in FY 98 and $818,600,000 in FY 
99; and Commercial Technology is $157,800,000 in FY 98 and 
$165,400,000 in FY 99. The Committee recommends funding for 
High Performance Computing and Communications (HPCC) at a level 
of $35,700,000 in FY 98, which reflects a reduction of 
$10,000,000. This represents the amount requested for the Next 
Generation Internet program. Out of the Commercial Technology 
line, $10,000,000 in each fiscal year are authorized for 
business facilitators which receive 40 percent State matching 
funds and obtain significant participation from local community 
colleges. Out of the Advanced Space Transportation Technology 
line, $333,500,000 in FY 98 and $313,900,000 in FY 99 are 
authorized for the X-33; $300,000,000 in FY 98 and $425,000,000 
in FY 99 are authorized for a competitive award of a contract 
to develop, build, flight test and procure an experimental SSTO 
vehicle which will be a complementary follow-on to the X-33. 
The en bloc amendment offered by Mr. Rohrabacher and Mr. Cramer 
and adopted at full committee markup (4/16/97) specifically 
authorized $40,770,000 in FY 99 for the Advanced Space 
Transportation Program. The additional SSTO X-vehicle program, 
originally authorized at $450 million in FY 99 was reduced by 
$25 million and this amount was transferred to the Advanced 
Space Transportation Program in FY 99.

Program Description

    NASA has restructured its Aeronautics and Space 
Transportation Enterprise by the incorporation of Space 
Transportation and Commercial Technology programs into 
Aeronautics. The Research and Technology Base, High Speed 
Research, Advanced Subsonic Technologies, and the High 
Performance Computing and Communications programs form the bulk 
of NASA's aeronautical research efforts. The core of these 
programs can be found in the Research and Technology Base where 
the focus is leading-edge research in propulsion and 
structures. Development of technologies and environmental 
research required prior to a decision to build a High Speed 
Civil Transport are the main focuses of the High Speed Research 
Program. The High Speed Research Program will terminate in FY 
02. Significant challenges will have to be overcome before the 
goal of the High Speed Civil Transport--a safe, environmentally 
friendly supersonic transport whose cost efficiencies rival 
today's subsonic long-range aircraft--can be met.
            Committee Views
    On July 25, 1996 the President established the White House 
Commission on Aviation Safety and Security and assigned it 
three specific mandates: to assess the future threat to 
security; to provide a framework for regulation of the aviation 
industry of the future; and to assess advances in technology 
and how they can best be used. On February 12, 1997 the final 
report of the Commission was delivered to the President. The 
principal recommendation of the Commission was that the focus 
of government and industry should be to reduce the rate of 
accidents by a factor of five within the next decade, and that 
a national air traffic control system capable of facilitating 
this be operational by 2005. The agencies which will be 
involved in this initiative are principally the Federal 
Aviation Administration, DoD, and NASA.
    NASA's role in this effort will be primarily in the area of 
human factors research due to the fact that the majority of 
aviation accidents involves human error. NASA will contribute 
expertise in areas it has already conducted research in, such 
as more efficient terminal area control and advanced air 
traffic control systems. NASA's proposed share of this 
initiative is $500 million, though funding profiles have not 
been provided to Congress.
    Given that the Committee has not been provided with a 
detailed plan on NASA's participation in this initiative, it is 
premature to judge the level of committed resources and the 
content of the program. Thus, the Committee expects that 
funding for this program will not be pursued prior to the 
budget submission for Fiscal Year 1999. Further, the 
Administration should consider the work already performed by 
the agency in human factors research, advanced air traffic 
control technologies, and terminal area productivity in the 
final determination of funding levels within NASA for this 
initiative.

The Paramount Goal of Cheap Access To Space

    After maintaining safety of the Space Shuttle for the 
astronauts who fly on it, the Committee believes the highest 
priority in federal civil space transportation is the radical 
reduction of the cost of launching people and cargo into space 
and returning them to Earth. This Committee has long supported 
the focused experimental demonstration of technologies which 
can lower space transportation costs, and the development and 
implementation of policies which foster a free and competitive 
market in space transportation services. The Committee believes 
that both advanced technology and competitive markets are 
required to dramatically lower space transportation costs.
    Cheap access to space is important for several reasons. One 
is the reduction of costs borne by the American taxpayer for 
ongoing and planned federal space activities, including human 
space flight, space science, space technology research and 
development; and broader requirements for non-emergency space 
transportation services for civilian and national security 
needs. A more important long-term goal is the enabling of new, 
unforeseen civil and commercial space activities which offer 
public and or private benefit to American citizens.
    In that context, the Committee believes that one of the 
highest priorities of the Federal Government's efforts to 
enable lower cost, commercially developed and operated space 
transportation systems is opening the space frontier to science 
and commerce.

Advanced Space Transportation Technology Program--In General

    In the past year, NASA's Advanced Space Transportation 
Technology activities have demonstrated significant progress, 
undergone significant organizational change, and assumed 
expanded responsibilities both for NASA and the broader space 
community.
    During 1996 and early 1997, the Advanced Space 
Transportation Technology program has seen the conclusion of a 
very successful DC-XA project, the restructuring of the X-34 
program in ways responsive to this Committee's concerns, the 
selection of an X-33 design and rapid progress on several 
important milestones in that program. The Committee commends 
the quantity and quality of success this program is producing 
across the board.
    With the elimination of the Office of Space Access and 
Technology, an action which concerned this Committee, the 
former Code X's Advanced Space Transportation Division was 
transferred to the Office of Aeronautics, creating the Office 
of Aeronautics and Space Transportation Technology. Although 
the Committee might have preferred preserving this activity as 
a free-standing Code, there are good historical reasons for the 
marriage of NASA's aeronautics and advanced space 
transportation efforts. In many ways, NASA's efforts to promote 
cheap access to space are akin to its historic role of 
promoting technological leadership in aviation, including 
building a strong cooperative relationship with industry. 
Furthermore, it is the Committee's impression that the 
Associate Administrator is strongly committed to the success of 
the Advanced Space Transportation Technology effort.
    Nevertheless, the Committee is concerned about the 
potential for losing focus in the Advanced Space Transportation 
function's Reusable Launch Vehicle program. The Administrator 
and Associate Administrator are reminded that the RLV program, 
and its component DC-XA, X-34, and X-33 projects were created 
with this Committee's approval as experiments in lean project 
management as well as technological endeavors. Because of the 
immense importance of these and newer advanced space 
transportation initiatives, the Committee will carefully 
monitor the progress of this Office and the potential impact of 
any organizational changes on the cost, timing, and prospective 
success of these initiatives.
    The Committee also takes note of the growing popular 
consensus that achieving cheap, reliable, and plentiful access 
to space is our nation's paramount space challenge for 
civilian, commercial, and national security purposes. The NASA 
Administrator has been a tireless and inspiring advocate for 
the critical need for cheaper, more robust space 
transportation, including new and innovative propulsion systems 
and technologies, as well as vehicle designs and commercial 
partnership arrangements. The Committee demonstrates its 
support for this priority by adding the majority of the 
increase in NASA's budget during FY 98 and FY 99 to the 
Advanced Space Transportation Technology account.

DC-XA (Clipper Graham)

    The Committee notes with sadness the accident which 
destroyed the Delta Clipper-Experimental (Advanced) vehicle 
upon landing after its fourth test flight. The Committee was 
pleased that the DC-XA demonstrated rapid re-flight in its 
second and third test flights, thanks largely to the courage of 
the NASA DC-XA project manager. The Committee commends 
Administrator Goldin for, and joins in, his statements that 
occasional failure must be acceptable if NASA is to push back 
technological barriers to the scientific exploration and 
commercial development of space.
    The Committee expresses regret that NASA did not install a 
more operator-friendly and redundant landing gear system in the 
DC-XA because of limited funds. The Committee generally 
supports the idea of buying multiple copies, or at least 
sufficient spare parts, for X-vehicles like the DC-XA, the X-
34, and the X-33. Finally, the Committee encourages NASA to 
pursue future technology demonstrations which would support 
such vertical take-off and landing concepts as pioneered by the 
DC-X and DC-XA, both for eventual commercial and military 
application.

X-34

    The Committee strongly supports NASA's restructuring and 
redefining the purpose of the X-34 project. Over the past years 
the Committee has received testimony, and staff briefings, 
which suggest that it is dangerous to mix the need to 
demonstrate an experimental technology with the commercial need 
to build a profitable system. The new X-34 is a pure ``X-
vehicle'', and will play an important role in developing flight 
test expertise which can benefit the X-33. The X-34 will serve 
as an important technology testbed for many X-33-complementary 
technologies which may be incorporated into X-33 or commercial 
reusable launch vehicles, as well as future integrated advanced 
technology demonstration vehicles (X-vehicles).
    Because of this newly-focused and vital role of the X-34, 
and the lessons learned from not investing more in the DC-XA 
testbed itself, the Committee supports NASA's plan to fund a 
second copy of the X-34 vehicle.

X-33

    The Committee was pleased by NASA's timely awarding, and 
the Vice President's announcement, of a Cooperative Agreement 
for Phase Two of the X-33. The project will be technically and 
organizationally challenging and the Committee will closely 
watch its progress and schedule. The Committee is strongly 
supportive of NASA and its industry partners embarking on the 
nation's flagship effort to revolutionize access to space.
    The Committee also wishes to specifically commend the X-33 
industry team, and the team leader Lockheed Martin in 
particular, for the significant investment of financial and 
human resources they are making in this program, and the 
attention given this program at the highest executive levels. 
Because the civil space program belongs to the American people, 
the Committee also thanks the industry team for its efforts to 
increase public awareness and understanding of the importance 
of cheap access to space.
    The Committee does remain concerned about the lack of 
redundancy in flight hardware for the X-33 test program. The 
lesson of having more than one copy of the test article was 
painfully re-learned during the DC-XA program, and is being 
addressed for the X-34 program. The Committee understands that 
although NASA does not intend to build a second vehicle copy, 
it may submit a reprogramming request to fund additional spare 
parts.

Advanced Space Transportation Program

    Since its creation in FY 97, the Advanced Space 
Transportation Program (ASTP) has had several different, and 
sometimes conflicting, purposes. With the FY 98 budget 
submission NASA appears to have clarified the purpose of ASTP, 
and is making progress in refocusing the disparate activities 
towards this new purpose.
    The Committee supports a significant and continuing program 
of investment in developing and demonstrating newer 
technologies than those used in the X-33. The Committee also 
supports the Low Cost Boost Technologies initiative, and 
recommends that NASA pursue the greatest possible cross-
application of technologies between the RLV program and the 
technologies developed in support of a commercial low-cost 
booster.

Additional SSTO X-Vehicle

    Historically, experimental programs either build two 
different designs or two or more copies of one design. This is 
because funding a second approach, at equal or lesser funding 
than the first, offers the program manager significant 
technical and programmatic redundancy in achieving the stated 
goals.
    It was impossible under the declining outyear budget in the 
President's FY 97 budget submission to fund an additional SSTO 
X-vehicle concept, which at that time would have been a second 
design concept for the X-33 program. Even with the stable 
budget forecast of FY 98, the Committee does not wish to fund a 
second X-33 concept, for two important reasons. First, the X-33 
Industry Team won the X-33 competition, and the right to 
succeed first in demonstrating SSTO technology. The Committee 
does not wish to suggest any lack of confidence in the X-33 
Industry/NASA team's efforts, and so does not authorize a 
``backup concept'' X-33 effort. The second reason is that the 
X-33 program makes payments to the Industry Team of 
approximately $980 million, roughly two thirds of which are for 
the X-33 vehicle and the remainder for full-scale ground 
technology demonstrations which will, presumably, help win 
investment confidence in the development of a full-scale 
commercial RLV. It would not be appropriate, nor is it 
affordable, to fund such ``confidence building'' activities for 
a second industry team.
    Instead, based on Administrator Goldin's response to 
written questions and his public statements about ``darkening 
the sky with X-vehicles,'' plus detailed NASA briefings to 
staff, the Committee wishes to endorse NASA's plans for 
building additional experimental vehicles to demonstrate more 
advanced technologies than the X-33, and to meet additional 
needs beyond NASA's requirement for a Shuttle replacement.
    To that end, the Committee is authorizing in FY 98 and FY 
99 an entire additional SSTO X-vehicle program that will be a 
complementary follow-on, and not a competitor, to the X-33. 
This will offer NASA and industry the opportunity to test, in 
flight, other concepts and newer technologies than the X-33. 
The Committee does not wish the additional SSTO X-vehicle 
program to be slowed by waiting for the development of 
technologies unlikely to be mature enough by 1999 for 
integration into a flight test vehicle, such as rocket-based 
combined cycle engines.
    The Committee has been concerned about the long-term 
potential for competition among operational RLVs. The Committee 
believes that authorizing this SSTO X-vehicle program will 
increase the likelihood that the United States will achieve 
cost reductions as well as price reductions in commercial 
launch services using operational RLVs.

Commercial Technology

    The amendment offered by Mr. Weldon (FL) and adopted at 
full committee markup (4/16/97), authorized, from within 
existing funds, $10 million in FY 98 and FY 99 for NASA 
business facilitators, also known as business incubators. This 
program is consistent with the stated mission of the agency 
particularly with respect to the Commercial Technology program 
within the Science, Aeronautics, and Technology budget. 
Business facilitators provide important resources for the 
startup of small, high-technology businesses in communities 
around the nation. Funding for these programs include a 
requirement for matching state funds. Not only will this 
requirement leverage the federal investment, it will link the 
success of the business facilitator to an active role played by 
the State government. Additionally, the Committee favors the 
requirement that this grant program be administered through a 
NASA Center that has experience with a business facilitator 
receiving state funds. This is a logical approach given the 
significant role State governments are asked to play in this 
program, since those Centers with past experience with State-
funded business facilitators can provide the most effective 
analysis of the proposals. Further, the Committee encourages 
the NASA Administrator to provide adequate resources to the 
Centers which host business facilitators to ensure their 
success, and encourages the Administrator to provide updates to 
the Committee on the progress and accomplishments of business 
facilitators at the end of Fiscal Years 1998 and 1999.

Sec. 102(5) Mission Communication Services

Sectional Analysis and Recommendation

    $400,800,000 in FY 98 and $436,100,000 in FY 99 are 
authorized for Mission Communication Services.

Program Description

    The Mission Communication Services line provides the ground 
networks for every NASA flight mission from interplanetary 
spacecraft to the Space Shuttle. Services also include 
tracking, orbit and attitude determination, maneuver analysis, 
communications scheduling, spacecraft command, spacecraft 
health and safety data acquisition, and science data 
acquisition.
            Committee Views
    The Committee is concerned about the goals and status of 
consolidating many Mission Communications Services functions 
under a Consolidated Space Operations Contract, and therefore 
directs NASA to provide the Committee with a report, as 
detailed in Sec. 128.

Sec. 102(6) Academic Programs

Sectional Analysis and Recommendation

    $102,000,000 in FY 98 and $108,000,000 in FY 99 are 
authorized for Academic Programs, of which $31,300,000 in FY 98 
and $33,800,000 in FY 99 are authorized for Historically Black 
Colleges and Universities; and $15,300,000 in FY 98 are 
authorized for the National Space Grant College and Fellowship 
Program.

Program Description

    Academic Program goals are to promote excellence in the 
United States' education system through enhancing and expanding 
scientific and technological competence.
            Committee Views
    The amendment offered by Ms. Jackson Lee and adopted at 
full committe markup (4/16/97), added $5.8 million in FY 98 and 
FY 99 for Historically Black Colleges and Universities.
    The Committee supports NASA's educational activities as an 
important means of generating student interest in mathematics 
and science.

Section 103. Mission Support

Sec. 103(1) Safety, Reliability, and Quality Assurance

Sectional Analysis and Recommendation

    $37,800,000 in FY 98 and $43,000,000 in FY 99 are 
authorized for Safety, Reliability, and Quality Assurance.

Program Description

    NASA's agencywide efforts to develop policies and practices 
to ensure safe operations and practices, quality controls, and 
reliable flight systems are funded under this account.

Sec. 103(2) Space Communication Services

Sectional Analysis and Recommendation

    $245,700,000 in FY 98 and $204,400,000 in FY 99 are 
authorized for Space Communication Services.

Program Description

    The Space Communications Services line provides electronic 
communications which are essential to the success of every NASA 
flight mission, from interplanetary spacecraft to the Space 
Shuttle. All Space Network major development activities such as 
TDRS Replenishment are funded in this budget line.
            Committee Views
    The Committee is concerned about the goals and status of 
consolidating many Space Communications Services functions 
under a Consolidated Space Operations Contract, and therefore 
directs NASA to provide the Committee with a report, as 
detailed in Sec. 128.

Sec. 103(3) Construction of Facilities

Sectional Analysis and Recommendation

    $159,400,000 in FY 98 and $188,900,000 in FY 99 are 
authorized for Construction of Facilities.

Program Description

    The Construction of Facilities line provides funding for 
facilities modifications, upgrades, and minor construction.

Sec. 103(4) Research and Program Management

Sectional Analysis and Recommendation

    $2,070,300,000 in FY 98 and $2,022,600,000 in FY 99 are 
authorized for Research and Program Management.

Program Description

    This budget line funds personnel and related costs; 
supporting costs; travel; and research operations support.

Section 104. Inspector General

Sectional analysis and recommendation

    $18,300,000 in FY 98 and $18,600,000 in FY 99 are 
authorized in FY 98 for the Office of Inspector General. This 
authorization represents no change from the President's 
request.

Program description

    Funding for this account supports activities of the NASA 
Office of Inspector General in carrying out its 
responsibilities under the Inspector General Act of 1978, 
including conduct of independent audits and investigations of 
agency programs and operations, prevention and detection of 
waste, fraud and abuse in agency activities, and promotion of 
economy and efficiency within the agency.

Section 105. Total Authorization

Sectional Analysis and Recommendation

    The total amount authorized under this Act for NASA is 
$13,881,800,000 in FY 98 and $13,925,800,000 in FY 99.

Section 106. Office of Commercial Space Transportation Authorization

Sectional Analysis and Recommendation

    $6,000,000 in FY 98 and $6,000,000 in FY 99 are authorized 
for the Office of Commercial Space Transportation within the 
Department of Transportation.
            Committee Views
    The en bloc amendment offered by Mr. Rohrabacher and Mr. 
Cramer and adopted at full committee markup (4/16/97), added 
$200,000 in FY 98 and FY 99.
    In addition to fulfilling its licensing responsibilities, 
the Office of Commercial Space Transportation should focus on 
supporting the development of industry-based standards. The 
resources of the Office can be more effectively used in 
recognizing existing government and non-government standards 
that are suitable for use in the space launch industry than in 
areas currently being managed by other agencies, i.e., space 
debris analysis, trade negotiations, etc. By fostering the 
development of industry-based standards, the Office can then 
use these standards as ``material approved for incorporation by 
reference,'' rather than develop new and potentially burdensome 
federal regulations. The Office should also recognize the 
efforts by the State governments in developing standards and 
regulations for the conduct of space launch activities.
    The Office should provide the resources to support the 
standards-issuing organizations in defining the standards 
needed, and the creation of the standards by the affected 
industry. In the international arena, other space faring 
nations are significantly ahead of the United States in the 
development of space related standards and are recommending 
their standards become the international standards recognized 
by the International Standards Organization. This role by AST 
would be in keeping with the additional findings to the 1988 
amendments to the Commercial Space Launch Act, ``the United 
States commercial space launch industry must be competitive in 
the international marketplace.''
    The Committee is concerned with the approach of the Office 
of Commercial Space Transportation to the licensing of pre-
launch activities. The Office's approach is inconsistent with 
the realities of today's commercial space launch industry and 
an anachronistic interpretation of the Act. Despite significant 
technological developments in the commercial space sector, the 
Office continues to apply a geographical test in its definition 
of launch for the purposes of license coverage. In the recently 
published Notice of Proposed Rulemaking (NPRM) on licensing 
regulations and in recent correspondence with industry and with 
Members of Congress, the Office defines the commencement of 
launch as only those hazardous activities that take place once 
the launch vehicle enters a federal range from which flight 
will occur. This approach is discriminatory and seriously 
flawed. Today's launch vehicle operators conduct an array of 
hazardous pre-launch activities, in some cases thousands of 
miles away from the actual launch site and several weeks away 
from the actual launch date but nevertheless in direct support 
of a particular launch campaign. Consistency can be applied by 
treating different launch vehicles the same by licensing the 
hazardous activities by nature and their relationship to the 
licensed launch rather than on the basis of geographical 
proximity or imminence of flight. Any other approach 
discriminates against launch operators that happen to conduct 
launches in non-traditional ways (e.g., air or sea-launch).

Section 107. Office of Space Commerce

Sectional Analysis and Recommendations

    $500,000 in FY 98 and $500,000 in FY 99 are authorized for 
the Office of Space Commerce within the Department of Commerce.

Program Description

    The Office of Space Commerce assists the Secretary of 
Commerce in efforts to promote the commercial development of 
space through policy development, export licensing, and policy 
coordination through the interagency process.

Section 108. United States--Mexico Foundation for Science

Sectional Analysis and Recommendation

    $1,000,000 in FY 98 and $1,000,000 in FY 99 are authorized 
for the United States--Mexico Foundation for Science.

Program Description

    The en bloc amendment offered by Mr. Rohrabacher and Mr. 
Cramer and adopted at full committee markup (4/16/97) 
authorized, from within existing NASA funds, $1 million in FY 
98 and FY 99 for the United States-Mexico Foundation for 
Science.
    The non-governmental US/Mexico Foundation for Science was 
established in 1992 by the Governments of Mexico and the United 
States with the strong support of the research and business 
communities of both countries. The creation of the Foundation 
was the result of a year-long study funded by the MacArthur 
Foundation on how to improve US/Mexican scientific and 
technological cooperation. Each country provided equal 
financial support to the Foundation (a total of $4 million).
    The Foundation's mission is to contribute to the 
technological and scientific strength of the two countries 
through fostering relevant research, training and human 
resource development, and promoting collaborative and 
comprehensive solutions of common problems.
    The Foundation is uniquely structured to accomplish this 
mission. The Foundation's Board of Governors consists of high 
level and influential members from the Mexican Academy of 
Scientific Investigation, the National Academy of Medicine, and 
the Academy of Engineering and the U.S. National Academies of 
Science and of Engineering and the Institute of Medicines. In 
addition, there are representatives of both Mexican and 
American businesses who are members of the Board.
    The Foundation is bi-national in structure and has the 
ability to be flexible in selection of priority areas which are 
defined as being of mutual interest and potential benefit to 
both countries. The Foundation has a proven track record of 
supporting high-quality research projects selected with a peer-
review system. The Foundation also currently supports a 
visiting scientist program, a Hewlett Foundation training 
program in S&T; policy and graduate and summer scholarship 
programs.
    Mexico has agreed to provide additional funds to the 
Foundation, contingent upon a U.S. contribution.

Subtitle B--Restructuring the National Aeronautics and Space 
        Administration

Section 111. Findings

Sectional analysis

    Section 111 finds that restructuring NASA is essential to 
accomplishing space missions while balancing the federal 
budget; restructuring requires objective financial judgment; 
and, a formal economic review of NASA's missions and the 
federal assets that support them is required in order to plan 
and implement needed restructuring.

Section 112. Restructuring Reports

Sectional Analysis

    Section 112 requires the Administrator to transmit a report 
to Congress, no later than 90 days after the date of enactment, 
on the agency's restructuring activities by fiscal year taken 
between July 31, 1995 and October 1, 2002. Not later than 180 
days after the date of enactment, the President shall propose 
all enabling legislation to carry out actions described in the 
Administrator's report.
            Committee Views
    NASA continues to downsize its personnel and 
infrastructure. The Committee is interested in receiving a 
formal report on the actions NASA plans to take to restructure 
the agency. Specifically, the Committee wishes to review 
restructuring activities that lead to terminated or 
consolidated contracts; reductions in force; personnel or 
facilities relocations; sales, closures, or mothballing of 
capital assets or facilities; and any savings that result from 
these actions. The Committee also wishes to review the status 
of implementing the Zero Base Review, in particular, the roles 
and responsibilities of all NASA Centers.
    In response to a Sense of the Congress amendment offered by 
Ms. Jackson Lee at full committee markup (4/16/97) and 
subsequently withdrawn, the Committee developed the following 
view:
    The Committee believes that NASA, when requesting contract 
proposals as a result of downsizing activities, should first 
consider those proposals that indicate a willingness to hire 
personnel currently performing functions for which a contract 
will be awarded.

Subtitle C--Limitations and Special Authority

Section 121. Use of Funds for Construction

    This section authorizes the use of funds appropriated for 
program purposes other than construction of facilities, 
personnel and travel-related costs in the Human Space Flight; 
Science, Aeronautics and Technology; and Mission Support 
accounts, for the construction of new facilities or repair of 
existing facilities at any location. The authorization is 
subject to a limitation that funds may not be expended for 
projects exceeding $500,000 until 30 days have passed following 
a report to the House Committee on Science and to the Committee 
on Commerce, Science, and Transportation of the Senate. This 
section would also provide for vesting of legal title in the 
United States when funds are used under this section for grants 
to academic institutions for additional research facilities.
    The Committee wishes to emphasize that the sole purpose of 
consolidating in one section the various provisions in previous 
authorization acts and bills concerning use of funds for 
construction of facilities purposes is to streamline and 
simplify the applicable legal authorities. This change from 
past practice should in no way be viewed as a dilution of the 
agency's authority to manage the construction of facilities 
program, or to realign the respective authorities and 
responsibilities of NASA Headquarters in relation to the 
Centers. With respect to the latter, the Committee expects the 
agency to establish the necessary internal procedures to ensure 
that construction of facilities decisions continue to be made 
in an orderly and fully justified manner.

Section 122. Availability of Appropriated Amounts

    Section 122 provides that, to the extent provided in 
appropriations Acts, appropriations authorized for Human Space 
Flight; Science, Aeronautics, and Technology; Mission Support; 
and, Inspector General may remain available without fiscal year 
limitation.

Section 123. Reprogramming for Construction of Facilities

    Section 123 establishes authority for the Administrator to 
increase the amount of funds authorized for specific 
construction of facilities projects, provided that the total 
authorization for construction of facilities is not increased 
as a result of such reprogramming actions. This section also 
authorizes the Administrator to use up to $10,000,000 of 
amounts authorized in this bill for construction of facilities 
for projects that result from new and unforeseen developments 
in the national civil space program, subject to notification to 
the House and Senate authorizing committees.

Section 124. Consideration by Committees

    Section 124 establishes a requirement that the 
Administrator report in advance to the House and Senate 
authorizing committees the use of appropriated funds for a 
program where the Congress did not provide funding as 
requested; the amount of funds proposed to be used exceeds the 
amount authorized for the program under Title I, Subtitle A of 
this bill; or the program was not presented to the Congress in 
the President's budget request.

Section 125. Limitation on Obligation of Unauthorized Appropriations

    Section 125 requires the Administrator to submit a report 
to the Congress and to the Comptroller General on FY 98 and FY 
99 appropriations for programs not authorized under subtitle A 
of this bill or that exceed authorized amounts for specific 
programs. The report is to be submitted within 30 days 
following enactment of an appropriations Act for FY 98 and 
within 30 days following enactment of an appropriations Act for 
FY 99. Section 125 also requires the Administrator to publish a 
Federal Register notice seeking public comment on programs for 
which funds are appropriated but which were not authorized in 
this bill, and limits the obligation of such funds until 30 
days following close of the comment period.

Section 126. Use of Funds for Scientific Consultations or Extraordinary 
        Expenses

    Section 126 authorizes the Administrator to use funds 
appropriated for Science, Aeronautics, and Technology 
activities, in an amount not exceeding $30,000 for scientific 
consultations or extraordinary expenses.

Section 127. Mission to Planet Earth Limitation

    $50,000,000 each year is authorized for the commercial 
Earth science data purchase program. In the past, NASA has 
resisted implementing such data purchases, even though the 
Committee has strongly endorsed them as a potential means of 
saving money. It was not until the White House Office of 
Management and Budget forced NASA to initiate a pilot program 
in Fiscal Year 1997 that NASA's Office of Mission to Planet 
Earth decided to explore the idea of leveraging private sector 
investments and to design and implement the program. The 
Committee commends the White House for moving NASA in this 
direction and applauds NASA's designation of the Commercial 
Remote Sensing Program (CRSP) at the Stennis Space Center as 
the lead center to implement this program. CRSP is the nation's 
premier program for stimulating private investments in space 
technology which meet federal science needs.
    The bill directs NASA's CRSP to design and implement the 
commercial Earth science data purchase program. The Committee 
expects that the Office of Mission to Planet Earth will allow 
CRSP the same autonomy it enjoyed in the former Office of Space 
Access and Technology and which the data purchase program 
requires for ultimate success. Due to the importance of the 
commercial Earth science data purchase program, the bill places 
NASA's Earth Systems Science Pathfinder program on hold until 
such time as the Office of Mission to Planet Earth makes all 
data purchase program funds available to CRSP for obligation by 
CRSP at the Stennis Space Center. The Committee therefore 
expects NASA to expedite the commercial Earth science data 
purchase program.
    The amendment offered by Mr. Coburn and adopted at full 
committee markup (4/16/97), prohibits NASA from transferring 
any appropriated Mission to Planet Earth funds to any museum. 
It also prohibits their use for the Man in the Biosphere 
Program, a program of the United Nations Educational, 
Scientific and Cultural Organization (UNESCO).

Section 128. Space Operations

    The Committee strongly supports the Administrator's goal of 
moving operational activities out of NASA and focusing the 
space agency's limited resources on scientific research and 
advanced technology development. There is at least some 
question, however, as to whether the model of the Space Flight 
Operations Contract should apply to the decentralized space 
operations activities contained in the Mission Communications 
Services, Space Communications Services, and other budget 
lines.
    Over two years NASA has initiated, suspended, and 
reinitiated an effort to consolidate all non-human space flight 
space operations activities into a Consolidated Space 
Operations Contract (CSOC). This Committee does not wish to 
prevent NASA from pursuing this initiative. However, there have 
been concerns raised about the level of competition in the 
bidding process for this contract. The Committee is also 
interested in the ability of the emerging commercial satellite 
operations industry to fulfill some part of the CSOC 
requirements on a commercial, fixed-price basis, and whether 
that might not be more cost effective than a single, cost-plus-
fee contract mechanism.
    The Committee therefore asks for a study of various cost-
effectiveness and level-of-competition issues regarding the 
CSOC before the consolidation proceeds to the five year 
contract award phase.

Section 129. International Space University Limitation

    Section 129 prohibits funds from this bill from being used 
to pay the tuition or living expenses for employees of NASA to 
attend the International Space University.

Section 130. Space Station Program Responsibilities

    The en bloc amendment offered by Mr. Rohrabacher and Mr. 
Cramer and adopted at full committee markup (4/16/97), added a 
new section to the bill. In brief, the new section prohibits 
the use of authorized funds to transfer International Space 
Station program responsibilities held as of October 1, 1996 
from one NASA Center to another.

Title II--International Space Station

Section 201. Findings

    The bill finds that the development, assembly, and 
operation of the International Space Station is in the national 
interest; it will be a unique and advanced laboratory for 
conducting microgravity research; it will create a framework 
for future international cooperation in large-scale science 
programs; and bringing capitalism and market mechanisms into 
the use, augmentation, and re-supply of the International Space 
Station may be an important means of reducing the program's 
cost to taxpayers and of increasing its benefits to the 
international partnership.

Section 202. Commercialization of Space Station

    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, growth, 
servicing, and utilization 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 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, the Act 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 Station 
commercialization. The third is an annual report on how much 
interest private companies have shown by making proposals to 
NASA themselves, and how NASA has acted on those proposals.

Section 203. Space Station Accounting Report

    The bill directs the Administrator to transmit to the 
Congress within 90 days of enactment a report which summarizes 
all Space Station-related agreements entered into with a 
foreign entity after September 30, 1993. The bill requires this 
report to include the costs of having entered into agreements 
in 1994 through 1996, including the costs that NASA expects to 
incur. The bill also requires an annual report on such foreign 
agreements reached during the previous fiscal year to be 
submitted to the Congress no later than 60 days after the end 
of each fiscal year. These annual reports shall also include an 
accounting of costs resulting from the aforementioned 
agreements during the previous year, as well as an estimate of 
future costs of those agreements.

Section 204. Report on International Hardware Agreements

    Section 204 requires the NASA Administrator to report to 
the House and Senate authorizing committees, not later than 90 
days after the date of enactment, on agreements that have been 
reached with foreign entities for the International Space 
Station. The report is to focus on agreements that have been 
reached with foreign entities to transfer to the foreign 
entity, the development and manufacture of hardware baselined 
to be provided by the United States and the impact of those 
agreements on U.S. operating costs and U.S. utilization shares. 
The section also requires, that 90 days before entering into 
any additional agreements, a report from the Administrator on 
the nature of the proposed agreement and the anticipated cost, 
schedule, commercial and utilization impacts of the proposed 
agreement.
    The Committee is concerned about these types of barter 
arrangements and whether they are in the taxpayers' interest. 
Such agreements may be creating outyear obligations, the extent 
of which we are currently unable to determine. These barter 
arrangements may also be eliminating opportunities to bring 
U.S. commercial providers into the International Space Station, 
thereby reducing the potential of the Space Station to 
contribute to the commercial development of low-Earth orbit. 
The Committee does not intend by this language to overturn 
existing barter arrangements. However, the Committee has not 
had adequate insight into the agreements that have already been 
entered into by NASA. Under this Section, the Committee intends 
to have such insight into future agreements.

Section 205. International Space Station Limitations

    Chairman Sensenbrenner and Ranking Member Brown offered a 
joint amendment at full committee markup (4/16/97) which was 
unanimously adopted by a division vote. This amendment added 
Section 205 to the bill. In Section 205, the Committee directs 
the Administration to take several actions intended to create a 
decision process for permanently resolving the issue of 
Russia's failure to meet all of its obligations to the 
International Space Station partnership. First, NASA is 
prohibited from transferring funds or making in-kind payments 
to the Russian government or any of its contractors to perform 
work on elements that the Russian government has pledged to 
provide at its expense. NASA's practice of forward funding 
Russian performance on existing contracts in order to enable 
the Russian Space Agency to pay its contractors for non-
contract work will be prohibited under this measure, enabling 
the Administration and Congress to have an honest estimate of 
the Russian government's degree of accountability for work that 
has not been performed on its elements. The measure exempts 
payments made for modifying the Functional Cargo Block, or FGB, 
which is Russian-built, but U.S.-owned.
    Second, the amended bill directs NASA to develop a 
contingency plan within 30 days of enactment for removing/
replacing Russian elements in the critical path of the 
International Space Station. The plan is required to have firm 
target dates for deciding whether Russian elements shall or 
shall not be baselined in the operational Space Station, which 
still must be completed by the end of 2002. NASA is required to 
include the costs associated with each decision, including the 
cost of not making it at the decision point and then being 
forced to replace a Russian critical path item after its 
decision point has passed. While the amendment gives NASA some 
flexibility in determining what its contingency options are for 
replacing each Russian element, the requirement for firm 
decision points deprives NASA of the ability to delay 
resolution. The Committee believes that this is the best means 
of ensuring that NASA's contingency plan will be executed and 
that decisions will be made in a rational manner.
    Third, the Administrator is required to certify to Congress 
on the first of every month that Russia has, or has not, done 
the required work in the previous month and is capable of doing 
the work in the succeeding month, that is necessary for Russia 
to keep its commitments to the International Space Station, 
while maintaining the assembly complete stage in 2002 and the 
first element launch by October 31, 1998. The Administration, 
Congress, and the public will have accurate insight into 
Russia's ability, or lack thereof, to meet its obligations. In 
the words of Ronald Reagan, who said of international 
agreements that we must ``trust, but verify,'' this is the 
verification.
    Fourth, the President is required to decide and report to 
Congress by August 1, 1997, whether the United States will 
baseline Russian elements or find some mechanism for replacing 
them in the Station's design. Additionally, the President is 
required to certify the reasons for the decision and the cost 
implications of such a decision. Such decision shall include a 
judgment as to whether the first element launch will occur by 
October 31, 1998, and whether assembly complete will occur by 
December 31, 2002. If the President decides after August 1, 
1997, to proceed with a permanent replacement of the Service 
Module or any other Russian element in the critical path, then 
he is required to certify to Congress the reasons for this 
decision as well as the cost difference between making this 
decision before August 1, 1997 and some point thereafter.
    Finally, the NASA administrator must certify to Congress 
that Mir meets or exceeds U.S. safety standards before placing 
any U.S. astronaut on the Russian Mir Space Station for any 
length of time beyond that during which the Space Shuttle is 
docked to the Mir. Such certification must be based on an 
independent review of the Mir Space Station's safety.
    The Committee is imposing a decision process on the 
Administration for resolving the Station's problems. It is not 
imposing a solution on the Administration at this time in the 
hope and expectation that the Administration will resolve the 
issue itself. However, the Committee made clear in its 
discussions at the markup that it reserves the right and will 
have the opportunity during this budget cycle to recommend the 
imposition of particular solutions if the Administration does 
not succeed in its efforts to resolve the current Russian 
situation.

Title III--Miscellaneous Provisions

Section 301. Commercial Space Launch Amendments

    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. 
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; provide for criteria for accepting a license 
application; require regulations, on obtaining a license, be 
issued by the Secretary of Transportation; and require an 
annual report, on licensing activities for space transportation 
vehicles and the performance of the Office of Commercial Space 
Transportation, be submitted by the Secretary of 
Transportation.
    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 seven days after a license has not 
been issued within the deadline. The Secretary may establish 
procedures for certification of the safety of a launch or 
reentry vehicle. 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. The Secretary is directed to establish 
criteria and procedures for determining the priority of 
competing requests from the private sector and State 
governments for property and services under section 70111. The 
term ``license'' is amended to ``launch reentry or site 
operator license'' under section 70112 on liability insurance.

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 and reentry of a vehicle and operation of a launch 
or reentry 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 were not encompassed, and were not intended to be 
encompassed, by the statute. 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.
    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.
    These same principles should apply to the licensing of a 
launch. There has been much discussion about what activities, 
should be encompassed by the term ``launch'' for purposes of 
the license requirement. It is the Committee's view that there 
may be activities that precede flight that (1) are closely 
proximate in time to ignition or lift-off, (2) entail critical 
steps preparatory to initiating flight, (3) are unique to space 
launch, and (4) are inherently so hazardous as to warrant the 
Department's regulatory oversight under Chapter 701, For 
instance, once a launch vehicle is fueled and armed in 
preparation for a launch, whether from the ground or the air, 
the risk of an inadvertent ignition may be sufficiently high to 
justify an interpretation of launch that would encompass this 
pre-flight phase of the launch campaign.
    The Committee recognizes that, given the very different 
preparatory process associated with individual launch vehicle 
systems, it may be difficult to pinpoint the same commencement 
of launch for all proposals. However, the Committee views with 
concern the Department's attempt to address this situation by 
using a license to indiscriminately cover all activities of a 
licensee at a launch facility before, during, and after a 
launch. The Committee believes that the Department can identify 
when a launch begins both for well-established launch systems 
as well as emerging systems. This would limit applicability of 
the Department's license requirement for purposes of obtaining 
a license and implementing the insurance and risk allocation 
provisions in Chapter 701.
    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 before launch, between launch and reentry, or after 
reentry. 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.
    To clarify applicability of sections 70112 and 70113 to 
licensed activities, the Committee recommends that the 
Secretary initiate a rule-making action to address both launch 
and reentry insurance and allocation of risk requirements as 
soon as reasonably practicable following enactment of this 
bill.
    Two new sections were added to Chapter 701, Sections 70120 
and 70121. Section 70120 requires the Secretary of 
Transportation within 6 months after the date of enactment, to 
issue regulations to give industry guidelines and procedures 
related to insurance, licenses and government indemnification. 
Section 70121 requires the Secretary of Transportation to 
submit an annual report on the activities undertaken under 
Chapter 701 and the performance of OCST.

Additional amendments authorizing criteria for license application 
        acceptance

    Section 301 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 302. Requirement for Independent Cost Analysis

    Section 302 requires the NASA Chief Financial Officer to 
conduct independent cost analyses of projects estimated to cost 
in excess of $75,000,000 in total project costs, and to report 
the results of the analyses to the Congress. The cost analysis 
is to occur before the project enters Phase C. The Committee 
views this provision as critical to its ongoing oversight and 
authorization responsibilities, as well as Congressional 
support for current and future NASA programs.

Section 303. Office of Space Commerce

    This Section establishes the Office of Space Commerce 
within the Department of Commerce. The Office's primary 
responsibilities include: the promotion of commercial provider 
investment in space activities; assisting United States 
commercial providers in their efforts to do business with the 
United States Government; ensuring that the United States 
government not compete with U.S. commercial providers in the 
provision of space hardware and services otherwise available 
from U.S. commercial providers; promoting the export of space-
related goods and services; representing the Department of 
Commerce in the development of United States policies in 
negotiations with foreign countries to ensure fair and equal 
trade; and seeking the removal of legal, policy, and 
institutional impediments to space commercialization.

Section 304. National Aeronautics and Space Act of 1958 Amendments

Reports to the Congress

    Section 304 amends the National Aeronautics and Space Act 
of 1958 (42 U.S.C. 2451) to require the President to submit to 
Congress the annual aeronautics and space report in May, rather 
than January; and to address in the report, activities carried 
out by government agencies on a fiscal, rather than calendar 
year basis. This change is made in order to give the 
Administration adequate time to prepare the report.

Disclosure of technical data

    Section 304 also amends the National Aeronautics and Space 
Act of 1958 (42 U.S.C. 2451) by the addition of provisions that 
authorize the Administrator at his discretion or at the request 
of a private sector entity, to withhold from public disclosure 
technical data generated in the performance of experimental, 
development, or research activities funded jointly by NASA and 
the private sector.
    Under existing authority (42 U.S.C. 22454(b)), NASA is 
authorized to withhold from public disclosure for a period not 
to exceed five years, technical data that (1) results from 
activities conducted under an agreement entered into under 
section 203(c)(5) and (6) of the National Aeronautics and Space 
Act of 1958, and (2) would be exempt from disclosure as a trade 
secret or commercial or financial information privileged or 
confidential under the Freedom of Information Act if it were 
obtained from a non-governmental participant in the activities. 
However, this authority does not necessarily apply to the 
product of jointly-funded research and development initiatives.
    The absence of appropriate protection for commercially-
sensitive data can be an obstacle to industry involvement and 
investment in cooperative projects with NASA. Private sector 
participation and cost-sharing in NASA projects could be 
encouraged by allowing temporary protection for certain kinds 
of commercially sensitive data that may emerge from cooperative 
initiatives. At the same time, the Committee supports 
fundamental principles of open access to Federal Government 
information that underlie the Freedom of Information Act.
    The amendment set forth in Section 304 seeks to balance 
these competing interests. Subject to issuance of regulations 
implementing this provision, the Administrator is authorized to 
afford limited and temporary protection for up to five years of 
technical data generated in the course of joint NASA-private 
sector research activities and programs as long as such 
activities include cost-sharing by the industry partners. 
``Technical data'' is defined as any recorded information, 
including computer software that is, or may be, directly 
applicable to the design, engineering, development, production, 
manufacture, or operation of products or processes that may 
have significant value in maintaining leadership or 
competitiveness in civil and governmental aeronautical and 
space activities by the United States industrial base. 
Regulations required to be issued are to include guidance for 
evaluating data from cooperative projects to determine whether 
it is encompassed by the definition of ``technical data;'' 
specification of the period(s) of nondisclosure for different 
types of technical data, including a requirement that the full 
5-year nondisclosure period is available only if the private 
sector share of funding is at least 50 percent; and 
identification of those experimental, developmental, or 
research activities that could generate technical data 
protected under this amendment. The Committee believes that 
NASA should study whether the regulations should provide for a 
sliding scale that would provide longer periods of protection 
for larger amounts of cost-sharing by industry. Cost-sharing 
means the expenditure by industry of non-federal, private funds 
directly on the joint research activities.

Section 305. Procurement

    This section establishes a program of expedited technology 
procurement to demonstrate how innovative technology concepts 
generated by commercial providers can quickly be brought to 
bear upon NASA space missions.
    Subsection (a) creates a procurement demonstration program 
with a sunset provision of ten years. The purpose of this 
initiative is not to create additional requirements for the 
agency. Instead, the Administrator is expected to conduct this 
pilot program in the context of normal procurement activities 
for which NASA has already identified a mission requirement. 
Several programs, such as the Explorer program in space 
sciences and the New Millennium program, have a technology 
demonstration timeline and flight schedule that would seem to 
accommodate this section.
    The Administrator is given special authority to hire, for 
limited term appointments, persons outside of NASA with 
expertise in relevant innovative technology concepts. In the 
past, NASA has been unreceptive to new solutions or ideas that 
came from outside the agency. This subsection is designed to 
generate creative solutions from commercial providers which 
shall be applied to the missions of NASA.
    Subsection (b) calls for a technology procurement 
initiative wherein the Administrator is required to certify 
that no functional equivalent of space hardware, technology, or 
service exists in the commercial sector or other, non-NASA 
federal agency before NASA can proceed with any procurement. 
The Administrator is required to comment in the Commerce 
Business Daily. This subsection is intended to ensure that NASA 
pursues ``off-the-shelf'' technology available from commercial 
providers or a non-NASA federal agency before soliciting a more 
expensive one-of-a-kind procurement.

Section 306. Acquisition of Space Science Data

    This section requires NASA, to the maximum extent possible, 
to purchase 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.
    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 307. Commercial Space Goods and Services

    This provision requires NASA to procure commercially 
available space goods and services when available. Furthermore, 
it prohibits NASA from engaging in activity that precludes or 
deters commercial investments in new space capabilities. This 
provision is consistent with the National Space Act and is 
derived from the White House National Space Policy of 1996.

Section 308. Acquisition of Earth Science Data

    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 commercial providers 
and the 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.

Section 309. EOSDIS Report

    The Earth Observing System Data and Information System 
(EOSDIS) is the ground element of NASA's Mission to Planet 
Earth (MTPE). EOSDIS has been criticized consistently by the 
Committee on Science, the National Research Council, and the 
Earth Systems Science Applications Advisory Committee for: (1) 
being overly centralized; (2) insufficiently involving MTPE 
principal investigators in design and development; and, (3) for 
locking the MTPE program, which will run through 2022, into 
1990s information technology at a time when information 
technology is changing overnight. In late 1996, these concerns 
proved well-founded when NASA was forced to issue a stop-work 
order for the first release version of the software due to the 
contractor's performance. If the EOSDIS Core System fails, then 
the nation's investment in Mission to Planet Earth is at risk. 
Consequently, the bill directs NASA to (1) analyze the 
capabilities, cost, and schedule of the Core System; (2) 
identify and analyze threats to the EOSDIS Core System's 
successful development and operation; (3) summarize NASA's 
plans and cost estimates for resolving each threat; and, (4) 
report these issues to the House and the Senate authorizing 
committees.

Section 310. Shuttle Privatization

    Privatization of the Shuttle program is the next logical 
step beyond consolidation of existing contracts under a single 
prime, and should be carried out in a manner that provides for 
a safe and efficient transition to private enterprise. The 
Committee also supports the concept of a derivative of a 
reusable launch vehicle to satisfy the requirement for a manned 
successor to the Space Shuttle program. It is hoped that any 
such system will be operated by a commercial provider as will 
any operation of the Shuttle by and beyond 2012. The Committee 
views the goal of a privately operated follow-on to the Shuttle 
program as one that is achievable by this date but will reserve 
the right to monitor the progress of both programs and revise 
any milestones accordingly.

Section 311. Launch Voucher Demonstration Program Amendments

    Launch Voucher Demonstration Program Amendments, Section 
504 of the Fiscal Year 1993 National Aeronautics and Space 
Administration Act (P.L. 102-588) is amended by striking out 
outdated references to dates and Offices.

Section 312. Use of Abandoned and Underutilized Buildings, Grounds, and 
        Facilities

    In meeting the needs for additional facilities, the 
Administrator, whenever feasible, shall select abandoned and 
underutilized buildings, grounds, and facilities in depressed 
communities that can be converted to NASA facilities at a 
reasonable cost, as determined by the Administrator.

Section 313. Cost Effectiveness Calculations

    When comparing the costs of NASA or a commercial provider 
engaging in an activity, the Administrator shall use full cost 
accounting principles in assessing NASA costs and shall compare 
this with the price the commercial provider would charge.

Section 314. Foreign Contract Limitation

    The bill prohibits NASA from entering into any agreement or 
contract with a foreign government that gives the foreign 
government the right to recover profit in the event that such 
agreement or contract is terminated. Leaving aside the 
appropriateness of the ``profit'' concept in agreements or 
contracts between government agencies, the Committee believes 
that NASA should not enter into any agreements with a foreign 
government that creates the possibility that those foreign 
governments will have legitimate standing to make demands on 
the American taxpayer for any ``profits'' that go unearned from 
a terminated agreement. Although one would expect NASA not 
enter into agreements with such provisions due to its 
responsibilities as a steward of public funds and public trust, 
NASA did enter such an agreement with the Russian Space Agency.

Section 315. Authority to Reduce or Suspend Contract Payments Based on 
        Substantial Evidence of Fraud

    This section amends 10 USC 2307(h)(8) which deals with 
actions that certain federal agencies can take in the case of 
fraud by a contractor. Currently this section applies to DoD, 
the Department of the Army, the Department of the Navy, and the 
Department of the Air Force. The section allows these entities 
to suspend or reduce contract payments when there is 
substantial evidence that the request of a contractor for 
advance, partial, or progress payment under a contract awarded 
by that agency is based on fraud. This amendment would add NASA 
to the list of agencies that can use this authority.

Section 316. Next Generation Internet

    Ensures that the Committee will have the opportunity to 
review and authorize the Next Generation Internet (NGI), while 
at the same time allowing for minimal on-going research in that 
program.
            Committee Views
    The progression of our country's computer networking 
technology plays a vital role in our nation's continued 
leadership in scientific research. The Committee, however, 
feels it necessary to develop more of a record before 
addressing funding for NGI, and is working with the 
Administration to develop a plan concerning NGI. The Committee 
expects to hold hearings on NGI in the future to better 
understand how it will further the goals of advancing network 
technologies.

Section 317. Limitations

Prohibition of Lobbying Activities

    Prohibits the use of funds authorized by this Act for any 
activity whose purpose is to influence legislation pending 
before the Congress. This section does not prevent employees of 
the departments and agencies from communicating with Members of 
Congress to conduct public business.
            Committee Views
    The Committee is committed to ensuring that awards for 
research and education are used solely for those purposes. 
Funds should not be used for any purpose, other than that 
specified in the award. The Committee, however, does not 
exclude appropriate communications between the Executive Branch 
and the Congress.

Limitation on Appropriations

    Disallows authorization of funds which are not specifically 
authorized to be appropriated by this Act for FY's 1998 and 
1999, or by an Act of Congress in succeeding fiscal years.
            Committee Views
    This section emphasizes the Committee's position that the 
only funds authorized to be appropriated for the National 
Aeronautics and Space Administration are made available through 
this Act. It is the Committee's position that authorizations 
designating specific sums are required for appropriations of 
such sums to be authorized.

Eligibility for Awards

    Requires the head of each federal agency for which funds 
are authorized under this act to exclude, for a period of 5 
years, any person who received funds for a project not subject 
to competitive, merit-based review process after FY 97. This 
section is not applicable to the long-standing Cooperative 
Research and Development Agreement program nor awards to 
persons who are members of a class specified by law for which 
assistance is awarded according to formula provided by law.

Section 318. Notice

    If any funds of this Act, or amendments made by this Act, 
are subject to reprogramming which requires notice to be given 
to the Appropriations Committees of the House of 
Representatives and the Senate, notice of such action shall be 
concurrently provided to this Committee and the Committee on 
Commerce, Science, and Transportation of the Senate.
    If any program, project, or activity of the National 
Aeronautics and Space Administration is preparing to undergo 
any major reorganization, the Administrator of the National 
Aeronautics and Space Administration shall notify the 
Committees on Science and Appropriations of the House of 
Representatives and the Committees on Commerce, Science, and 
Transportation and Appropriations of the Senate no later than 
15 days prior to such reorganization.
            Committee Views
    The Committee believes that such notice must be given if it 
is to carry out its oversight responsibilities under the Rules 
of the House.

Section 319. Sense of the Congress on the Year 2000 Problem

    It is the sense of Congress that the National Aeronautics 
and Space Administration should give high priority to 
correcting the year 2000 problem in all of its computer systems 
to ensure effective operation in the year 2000 and beyond. The 
National Aeronautics and Space Administration needs to assess 
immediately the risk of the problem upon their systems and 
develop a plan and a budget to correct the problem for its 
mission-critical programs. The National Aeronautics and Space 
Administration also needs to begin consideration of contingency 
plans, in the event that certain systems are unable to be 
corrected in time.
            Committee Views
    Despite knowing of the problem for years, the Federal 
Government has yet to adequately create strategies to address 
the year 2000 problem. The Committee believes Congress should 
continue to take a leadership role in raising awareness about 
the issue with both government and the private sector.
    The potential impact on federal programs if the year 2000 
problem is not corrected in an effective and timely manner is 
substantial and potentially serious. If federal computers are 
not prepared to handle the change of date on January 1, 2000, 
there is a risk to all government systems and the programs they 
support. It is imperative that such corrective action be taken 
to avert disruption to critical Federal Government programs.

Section 320. National Oceanographic Partnership Program

Sectional Analysis

    The National Oceanic Partnership Program was established by 
Congress in the Fiscal Year 1997 Defense Authorization Act and 
enables the government to enter partnerships with non-
government entities to study the world's oceans. The program is 
currently sponsored by the Navy. The bill authorizes NASA to 
participate. The Committee has included bill language 
specifically authorizing NASA participation in the National 
Oceanic Partnership Program. The Committee supports the goals 
of the Program to maximize efficiency in the execution of ocean 
research efforts among nine federal agencies, academia and 
industry. The Committee encourages NASA to take a proactive 
role in the Program via membership on the National 
Oceanographic Research Leadership Council; to use the 
Partnership Program mechanism to leverage NASA oceanographic 
resources; and to coordinate with ongoing and planned efforts 
of federal agencies and other entities having similar research 
requirements.

Section 321. National Science Foundation Antarctic Program

Sectional Analysis

    The Committee has been very supportive of the National 
Science Foundations Antarctic Program. At the full committee 
hearing, ``The United States and Antarctica in the 21st 
Century,'' the recommendation was made that if excess capacity 
is available on the Tracking and Data Relay Satellite System 
(TDRSS) it could be used by the NSF's Antarctic program. The 
Committee endorses this recommendation and encourages the NASA 
Administrator to give strong consideration in providing excess 
capacity of the TDRSS constellation to NSF's Antarctic program.

Section 322. Buy American

    Requires any entity that is appropriated funds pursuant to 
this act or amendments thereto, to comply with sections 2-4 of 
the Act of March 3, 1933 (41 U.S.C. 10a-10c, popularly known as 
the ``Buy American Act''). Requires that recipients of funds 
pursuant to this act shall be notified of subsection (a)'s 
requirement of compliance with the Buy American Act.
            Committee Views
    It is the view of this Committee that the Federal 
Government buy goods manufactured in the United States when 
feasible, where cost-effective, and practicable.

                      VI. 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 VII 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. 
1275 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. 
1275 does authorize additional discretionary spending, as 
described in the Congressional Budget Office report on the 
bill, which is contained in Section VII of this report.

             VII. Congressional Budget Office Cost Estimate

    [The CBO estimate follows:]
    
    
                 VIII. Compliance With Public Law 104-4

    H.R. 1275 contains no unfunded mandates.

          IX. 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.

     X. 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.

                 XI. 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 I, section 8 of the Constitution of the 
United States grants Congress the authority to enact H.R. 1275.

               XII. Federal Advisory Committee Statement

    This legislation does not establish or authorize the 
establishment of a new advisory committee.

                 XIII. Congressional Accountability Act

    The Committee finds that H.R. 1275 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).



       XIV. 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):

                      TITLE 49, UNITED STATES CODE

          * * * * * * *

              SUBTITLE IX--COMMERCIAL SPACE TRANSPORTATION

          * * * * * * *

            CHAPTER 701--COMMERCIAL SPACE LAUNCH ACTIVITIES

Sec.
70101.  Findings and purposes.
70102.  Definitions.
70103.  General authority.
[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) * * *
          * * * * * * *
            (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.
          * * * * * * *
            (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 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 and 
State Sponsored Spaceports.--In carrying out this chapter, the 
Secretary shall--
            (1) encourage, facilitate, and promote commercial 
        space launches and reentries by the private sector and 
        State sponsored spaceports; 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.

[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 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 7 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 certification of the safety of a 
launch vehicle, reentry vehicle, or safety system, procedure, 
service, 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, or 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.
          * * * * * * *

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.
          * * * * * * *

[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.
          * * * * * * *

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] additive costs only 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) acquiring launch property by sale or 
        transaction instead of sale is the fair market value;
            (B) acquiring launch property (except by sale or 
        transaction instead of sale) is an amount equal to the 
        direct costs, including specific wear and tear and 
        property damage, the Government incurred because of 
        acquisition of the property; and
            (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, reentry vehicle, or payload.

Sec. 70112. Liability insurance and financial responsibility 
                    requirements

    (a) General Requirements.--(1) When a launch, reentry, or 
site operator 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) * * *
          * * * * * * *
    (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, reentry, or 
site operator 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.
          * * * * * * *
    (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, reentry, or site operator 
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) Prohibitions.--A person may not violate this chapter, a 
regulation prescribed under this chapter, or any term of a 
license issued or transferred under this chapter.
    (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, or 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

    The Secretary of Transportation, within 6 months after the 
date of the enactment of this section, shall issue regulations 
to carry out this chapter that include--
            (1) guidelines for industry to obtain sufficient 
        insurance coverage for potential damages to third 
        parties;
            (2) procedures for requesting and obtaining 
        licenses to operate a commercial launch vehicle and 
        reentry vehicle;
            (3) procedures for requesting and obtaining 
        operator licenses for launch and reentry; and
            (4) procedures for the application of government 
        indemnification.

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.
          * * * * * * *
                              ----------                              


               NATIONAL AERONAUTICS AND SPACE ACT OF 1958

      TITLE I--SHORT TITLE, DECLARATION OF POLICY, AND DEFINITIONS

          * * * * * * *

                   declaration of policy and purpose

    Sec. 102. (a)  * * *
          * * * * * * *
    [(f) The Congress declares that the general welfare of the 
United States requires that the unique competence in scientific 
and engineering systems of the National Aeronautics and Space 
Administration also be directed toward the development of 
advanced automobile propulsion systems. Such development shall 
be conducted so as to contribute to the achievement of the 
purposes set forth in section 302(b) of the Automotive 
Propulsion Research and Development Act of 1978.]
    [(g)] (f) The Congress declares that the general welfare of 
the United States requires that the unique competence of the 
National Aeronautics and Space Administration in science and 
engineering systems be directed to assisting in bioengineering 
research, development, and demonstration programs designed to 
alleviate and minimize the effects of disability.
    [(h)] (g) It is the purpose of this Act to carry out and 
effectuate the policies declared in subsections (a), (b), (c), 
(d), (e), [(f), and (g)] and (f).
          * * * * * * *

      TITLE II--COORDINATION OF AERONAUTICAL AND SPACE ACTIVITIES

          * * * * * * *

                        reports to the congress

    Sec. 206. (a) The President shall transmit to the Congress 
in [January] May of each year a report, which shall include (1) 
a comprehensive description of the programed activities and the 
accomplishments of all agencies of the United States in the 
field of aeronautics and space activities during the preceding 
[calendar] fiscal year, and (2) an evaluation of such 
activities and accomplishments in terms of the attainment of, 
or the failure to attain, the objectives described in section 
102(c) of this Act.
          * * * * * * *

                        TITLE III--MISCELLANEOUS

          * * * * * * *
                         access to information
    Sec. 303. (a) Information obtained or developed by the 
Administrator in the performance of his functions under this 
Act shall be made available for public inspection, except (A) 
information authorized or required by Federal statute to be 
withheld, (B) information classified to protect the national 
security, and (C) information described in subsection (b) or 
(c): Provided, That nothing in this Act shall authorize the 
withholding of information by the Administrator from the duly 
authorized committees of the Congress.
          * * * * * * *
    (c)(1) The Administrator may, and at the request of a 
private sector entity shall, delay for a period of at least one 
day, but not to exceed 5 years, the unrestricted public 
disclosure of technical data in the possession of, or under the 
control of, the Administration that has been generated in the 
performance of experimental, developmental, or research 
activities or programs funded jointly by the Administration and 
such private sector entity.
    (2) Within 1 year after the date of the enactment of the 
Civilian Space Authorization Act, Fiscal Years 1998 and 1999, 
the Administrator shall issue regulations to carry out this 
subsection. Paragraph (1) shall not take effect until such 
regulations are issued.
    (3) Regulations issued pursuant to paragraph (2) shall 
include--
            (A) guidelines for a determination of whether data 
        is technical data within the meaning of this 
        subsection;
            (B) provisions to ensure that technical data is 
        available for dissemination within the United States to 
        United States persons and entities in furtherance of 
        the objective of maintaining leadership or 
        competitiveness in civil and governmental aeronautical 
        and space activities by the United States industrial 
        base; and
            (C) a specification of the period or periods for 
        which the delay in unrestricted public disclosure of 
        technical data is to apply to various categories of 
        such data, and the restrictions on disclosure of such 
        data during such period or periods, including a 
        requirement that the maximum 5-year protection under 
        this subsection shall not be provided unless at least 
        50 percent of the funding for the activities or 
        programs is provided by the private sector.
    (4) The Administrator shall annually report to the Congress 
all determinations made under paragraph (1).
    (5) For purposes of this subsection, the term ``technical 
data'' means any recorded information, including computer 
software, that is or may be directly applicable to the design, 
engineering, development, production, manufacture, or operation 
of products or processes that may have significant value in 
maintaining leadership or competitiveness in civil and 
governmental aeronautical and space activities by the United 
States industrial base.
          * * * * * * *
                              ----------                              


   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.
                              ----------                              


                      TITLE 10, UNITED STATES CODE

          * * * * * * *

                    Subtitle A--General Military Law

          * * * * * * *

               PART IV--SERVICE, SUPPLY, AND PROCUREMENT

          * * * * * * *

                   CHAPTER 137--PROCUREMENT GENERALLY

Sec. 2307. Contract financing

    (a)  * * *
          * * * * * * *
    (h) Action in Case of Fraud.--(1)  * * *
          * * * * * * *
    (8) This subsection applies to the agencies named in 
paragraphs (1), (2), (3), [and (4)] (4), and (6) of section 
2303(a) of this title.
          * * * * * * *

                     XV. Committee Recommendations

    On April 16, 1997, a quorum being present, the Committee 
favorably reported the ``Civilian Space Authorization Act, 
Fiscal Years 1998 and 1999,'' by a voice vote, and recommends 
its enactment.
            XVI. Minority, Supplemental and Additional Views

                                ------                                


                  ADDITIONAL VIEWS OF HON. TIM ROEMER

    In voting against H.R. 1275, the Civilian Space 
Authorization Act for Fiscal Years, I remain very concerned 
about U.S. participation in the planned international space 
station program. While I am grateful for the opportunity to 
bring this matter to the Committee's consideration, I am 
disappointed that my amendment to terminate the $2.1 billion 
authorization for the space station has failed again.
    Last week, NASA announced that it will begin its on-orbit 
assembly of the International Space Station 11 months behind 
schedule, and is looking at other options that will allow it to 
work around the delay caused by the late arrival of the service 
module. It is very likely that continued delays will result in 
cost overruns, launch setbacks and may require yet another 
redesign effort. NASA has indicated that construction of the 
interim control module construction could costs taxpayers an 
additional $600 million to the program. Moreover, the revised 
assembly schedule will require as much as $300 million to be 
diverted from other NASA programs, including the space shuttle, 
to finance the ``U.S./Russian Cooperation and Program 
Assurance'' contingency fund. NASA even says some of this money 
would be set aside for ``future contingencies.''
    For well over a year, NASA has told the Science Committee 
that a solution to the Russian funding problem was attainable. 
NASA promised the Committee that it would have a plan to 
resolve the Russian problem by mid-April, but no plan has been 
formulated. It would appear that NASA is serving at the mercy 
of the Russian Finance Ministry, like the Russian contractors 
who have yet to be paid for construction of critical hardware 
components.
    NASA made clear promises to the Committee that the Russian 
partnership would save the American taxpayers at least two 
billion dollars. Clearly NASA has not been able to deliver, and 
although there has never been a full accounting of the station 
program, it is evident that Russian participation is costing 
more than planned; not saving but costing more.
    For these reasons, my amendment to eliminate Russian 
participation was intended as a reasonable and cost-conscious 
alternative. It would simply allow them to be paying commercial 
tenants of the space station. It was not intended to prevent 
NASA from buying components from Russian contractors, but it 
would prevent the Russians, and their inability to meet their 
commitments, out of the pockets of American taxpayers. My 
amendment would not remove the Russians from participating as a 
partner in the station, but would relegate them to the status 
of the other partners, remove them from the critical path to 
permanent manned capability and completion.
    Leading scientists, including Dr. Robert Park of the 
American Physical Society, have testified before the Science 
Committee that the space station will yield insignificant 
scientific results. I share his assessment as the scientific 
rationale for the space station continues to shrivel, as more 
funds are transferred from research to hardware.
    In conclusion, the space station is not an intelligent use 
of taxpayer money, and I will continue to fight this project. 
With our increasingly limited resources, we must invest in 
those space programs that create quality science for a 
reasonable cost. The space station does neither, and is eating 
up too much of NASA's resources. For these reasons, I could not 
support the legislation.

                                                        Tim Roemer.
                                ------                                


                  ADDITIONAL VIEWS OF HON. ZOE LOFGREN

    I agree with many of the provisions of H.R. 1275, and 
generally support this legislation. Nevertheless, I am very 
concerned about the $750 million in funding for a single-stage-
to-orbit (SSTO) vehicle added in the bill.
    I am concerned that the Committee added about $750 million 
for a specific new program, without debate or consideration of 
its merits. While we know that the Reusable Launch Vehicle 
program will and should not end with one X-33 demonstrator, the 
Committee has not yet determined how it will proceed once this 
first vehicle is constructed. Program options range all the way 
from a second X-33 to a multi-stage-to-orbit vehicle, and I 
believe that each of these options merit due consideration.
    Further, H.R. 1275 funds this new SSTO at a higher level 
than the X-33 program over the next 2 years. Congress has 
required the X-33 contractor to secure private sector funding, 
and the SSTO provisions in this bill send a conflicting message 
to Wall Street about our commitment to the X-33, potentially 
impacting the program's ability to attract the necessary 
backing.
    I strongly believe in competition and certainly share the 
dream of those who seek cheap access to space. But the SSTO 
proposal needs hearings and debate, and I oppose its presence 
in the bill at this time.

                                                       Zoe Lofgren.

                  ADDITIONAL VIEWS OF HON. TOM COBURN

    As a scientist trained as a physician, I recognize and 
respect the technological and scientific progress made by NASA, 
the space program, and related endeavors. Yet while I support 
the merits and intent of the Civilian Space Authority Act, I 
cannot support the funding levels requested by this bill.
    I remain concerned about many aspects of NASA, especially 
the Mission to Planet Earth program. Regardless of the supposed 
worth of such initiatives, they are outside the scope of NASA's 
core mission, space exploration. I believe NASA should focus 
its dollars on the space program, not on duplicative 
environmental policies.
    Finally, during this time of financial uncertainty, I 
cannot support the proposed budgetary increase, regardless of 
how insignificant it might seem. Acknowledging this, I do not 
believe NASA truly needs a $259 million increase over the next 
two years.

                                                     Tom A. Coburn.