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114th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 114-119
====================================================================
SPURRING PRIVATE AEROSPACE COMPETITIVENESS AND
ENTREPRENEURSHIP ACT OF 2015
_______
May 18, 2015.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Smith of Texas, from the Committee on Science, Space, and
Technology, submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 2262]
[Including cost estimate of the Congressional Budget Office]
The Committee on Science, Space, and Technology, to whom
was referred the bill (H.R. 2262) to facilitate a pro-growth
environment for the developing commercial space industry by
encouraging private sector investment and creating more stable
and predictable regulatory conditions, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
CONTENTS
Page
Committee Statement and Views.................................... 8
Section-by-Section............................................... 22
Explanation of Amendments........................................ 30
Committee Consideration.......................................... 31
Roll Call Votes.................................................. 31
Correspondence................................................... 44
Application of Law to the Legislative Branch..................... 46
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 46
Statement of General Performance Goals and Objectives............ 46
Duplication of Federal Programs.................................. 46
Disclosure of Directed Rule Makings.............................. 46
Federal Advisory Committee Act................................... 46
Unfunded Mandate Statement....................................... 46
Earmark Identification........................................... 47
Committee Estimate............................................... 47
Budget Authority and Congressional Budget Office Cost Estimate... 47
Changes in Existing Law Made by the Bill as Reported............. 48
Minority Views................................................... 67
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Spurring Private Aerospace
Competitiveness and Entrepreneurship Act of 2015'' or the ``SPACE Act
of 2015''.
SEC. 2. CONSENSUS STANDARDS.
Section 50905(c) of title 51, United States Code, is amended--
(1) by striking paragraph (3);
(2) by redesignating paragraph (4) as paragraph (8); and
(3) by inserting after paragraph (2) the following:
``(3) Interim industry voluntary consensus standards
report.--The Secretary, in consultation with the Commercial
Space Transportation Advisory Committee, or its successor
organization, shall provide a report to the Committee on
Science, Space, and Technology of the House of Representatives
and the Committee on Commerce, Science, and Transportation of
the Senate on the progress of the commercial space
transportation industry in developing voluntary consensus
standards or any other construction that promotes best
practices to improve the industry. Such report shall include,
at a minimum--
``(A) any voluntary industry consensus standards or
any other construction that have been accepted by the
industry at large;
``(B) the identification of areas that have the
potential to become voluntary industry consensus
standards or another potential construction that are
currently under consideration by the industry at large;
``(C) an assessment from the Secretary on the general
progress of the industry in adopting voluntary
consensus standards or any other construction;
``(D) lessons learned about voluntary industry
consensus standards or any other construction, best
practices, and commercial space launch operations;
``(E) any lessons learned associated with the
development, potential application, and acceptance of
voluntary industry consensus standards or any other
construction, best practices, and commercial space
launch operations; and
``(F) recommendations, findings, or observations from
the Commercial Space Transportation Advisory Committee,
or its successor organization, on the progress of the
industry in developing industry consensus standards or
any other construction.
This report, with the appropriate updates in the intervening
periods, shall be transmitted to such committees no later than
December 31, 2016, December 31, 2018, December 31, 2020, and
December 31, 2022. Each report shall describe and assess the
progress achieved as of 6 months prior to the specified
transmittal date.
``(4) Interim report on knowledge and operational
experience.--The Secretary shall provide a report to the
Committee on Science, Space, and Technology of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the of the Senate on the status of the
knowledge and operational experience acquired by the industry
while providing flight services for compensation or hire to
support the development of a safety framework. Interim reports
shall by transmitted to such committees no later than December
31, 2018, December 31, 2020, and December 31, 2022. Each report
shall describe and assess the progress achieved as of 6 months
prior to the specified transmittal date.
``(5) Independent review.--No later than December 31, 2023,
an independent, private systems engineering and technical
assistance organization or standards development organization
contracted by the Secretary shall provide to the Committee on
Science, Space, and Technology of the House of Representatives
and the Committee on Commerce, Science, and Transportation of
the Senate an assessment of the readiness of the commercial
space industry and the Federal Government to transition to a
safety framework that may include regulations. As part of the
review, the contracted organization shall evaluate--
``(A) the progress of the commercial space industry
in adopting industry voluntary standards or any other
construction as reported by the Secretary in the
interim assessments included in reports provided under
paragraph (4); and
``(B) the knowledge and operational experience
obtained by the commercial space industry while
providing services for compensation or hire as reported
by the Secretary in the interim knowledge and
operational reports provided under paragraph (4).
``(6) Learning period.--Beginning on December 31, 2025, the
Secretary may propose regulations under this subsection without
regard to paragraph (2)(C) and (D). The development of any such
regulations shall take into consideration the evolving
standards of the commercial space flight industry as identified
through the reports published under paragraphs (3) and (4).
``(7) Communication and transparency.--Nothing in this
subsection shall be construed to limit the authority of the
Secretary of Transportation to discuss potential approaches,
potential performance standards, or any other topic related to
this subsection with the commercial space industry including
observations, findings, and recommendations from the Commercial
Space Transportation Advisory Committee, or its successor
organization, prior to the issuance of a notice of proposed
rulemaking. Such discussions shall not be construed to permit
the Secretary to promulgate industry regulations except as
otherwise provided in this section.''.
SEC. 3. INTERNATIONAL LAUNCH COMPETITIVENESS.
(a) Purpose.--The purpose of this section is to provide for updating
the methodology used to calculate the maximum probable loss from claims
under section 50914 of title 51, United States Code, with a validated
risk profile approach to provide reasonable maximum probable loss
values associated with potential third party losses from commercially
licensed launches. An appropriately updated methodology will help
ensure that the Federal Government is not exposed to greater financial
risks than intended and that launch companies are not required to
purchase more insurance coverage than necessary.
(b) Maximum Probable Loss Plan.--Not later than 180 days after the
date of enactment of this Act, the Secretary of Transportation shall
provide to the Committee on Science, Space, and Technology of the House
of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a plan to update the methodology used to
calculate maximum probable loss from claims under section 50914 of
title 51, United States Code, through the use of a validated risk
profile approach. Such plan shall include, at a minimum--
(1) an evaluation of the reasonableness of the current single
casualty estimate and, if needed, the steps the Secretary will
take to update such estimate;
(2) an evaluation, in consultation with the Administrator of
the National Aeronautics and Space Administration and the heads
of other relevant executive agencies, of the reasonableness of
the dollar value of the insurance requirement required by the
Secretary for launch providers to cover damage to Government
property resulting from a commercially licensed space launch
activity, and recommendations as to a reasonable calculation
if, as determined by the Secretary, the current statutory
threshold is insufficient;
(3) a schedule of when updates to the methodology and
calculations for the totality of the Maximum Probable Loss will
be implemented, and a detailed explanation of any changes to
the current calculation; and
(4) consideration of the impact of the cost of its
implementation on the licensing process, both in terms of the
cost to industry of collecting and providing the requisite data
and cost to the Government of analyzing the data.
(c) Independent Assessment.--Not later than 270 days after
transmittal of the plan under subsection (b), the Comptroller General
shall provide to the Committee on Science, Space, and Technology of the
House of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate an assessment of--
(1) the conclusions and analysis provided by the Secretary of
Transportation in the plan required under subsection (b);
(2) the implementation schedule proposed by the Secretary in
such plan;
(3) the suitability of the plan for implementation; and
(4) any further actions needed to implement the plan or
otherwise accomplish the purpose of this section.
(d) Launch Liability Extension.--Section 50915(f) of title 51, United
States Code, is amended by striking ``December 31, 2016'' and inserting
``December 31, 2025''.
SEC. 4. LAUNCH LICENSE FLEXIBILITY.
Section 50906 of title 51, United States Code, is amended--
(1) in subsection (d), by striking ``launched or reentered''
and inserting ``launched or reentered under that permit'';
(2) by amending subsection (d)(1) to read as follows:
``(1) research and development to test design concepts,
equipment, or operating techniques;'';
(3) in subsection (d)(3), by striking ``prior to obtaining a
license'';
(4) in subsection (e)(1), by striking ``suborbital rocket
design'' and inserting ``suborbital rocket or rocket design'';
and
(5) by amending subsection (g) to read as follows:
``(g) The Secretary may issue a permit under this section
notwithstanding any license issued under this chapter. The issuance of
a license under this chapter shall not invalidate a permit under this
section.''.
SEC. 5. GOVERNMENT ASTRONAUTS.
(a) Definitions.--Section 50902 of title 51, United States Code, is
amended--
(1) by redesignating paragraphs (4) through (22) as
paragraphs (5) through (23), respectively;
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) `government astronaut' means an individual designated
as such by the Administrator of the National Aeronautics and
Space Administration, pursuant requirements established by the
Administrator, who--
``(A) is an employee of--
``(i) the United States Government, including
the United States Armed Forces; or
``(ii) a foreign government that is a party
to the Intergovernmental Agreement Among the
Government of Canada, Governments of Member
States of the European Space Agency, the
Government of Japan, the Government of the
Russian Federation, and the Government of the
United States of America Concerning Cooperation
on the Civil International Space Station,
signed on January 29, 1998; and
``(B) is carried within a launch vehicle or reentry
vehicle in the course of his or her employment, which
may include performance of activities directly relating
to the launch, reentry, or other operation of the
launch vehicle or reentry vehicle.'';
(3) in paragraph (5), as so redesignated by paragraph (1) of
this subsection, by inserting ``government astronaut,'' after
``crew,'';
(4) in paragraph (7)(A), as so redesignated by paragraph (1)
of this subsection, by inserting ``government astronaut,''
after ``(including crew training),'';
(5) in paragraph (14), as so redesignated by paragraph (1) of
this subsection, by inserting ``government astronauts,'' after
``crew,'';
(6) in paragraph (15)(A), as so redesignated by paragraph (1)
of this subsection, by inserting ``government astronaut,''
after ``(including crew training),'';
(7) by amending paragraph (18), as so redesignated by
paragraph (1) of this subsection, to read as follows:
``(18) `space flight participant' means an individual, who is
not crew or a government astronaut, carried within a launch
vehicle or reentry vehicle.''; and
(8) in paragraph (22)(E), as so redesignated by paragraph (1)
of this subsection, by inserting ``, government astronauts,''
after ``crew''.
(b) Restrictions on Launches, Operations, and Reentries; Single
License or Permit.--Section 50904(d) of title 51, United States Code,
is amended by inserting ``, government astronauts,'' after ``crew''.
(c) License Applications and Requirements; Applications.--Section
50905 of title 51, United States Code, is amended--
(1) in subsection (a)(2), by striking ``crews and space
flight participants'' and inserting ``crew, government
astronauts, and space flight participants'';
(2) in subsection (b)(2)(D), by inserting ``, government
astronauts,'' after ``crew''; and
(3) in subsection (c)--
(A) in paragraph (1), by inserting ``, government
astronauts,'' after ``crew''; and
(B) in paragraph (2), by striking ``to crew or space
flight participants'' each place it appears and
inserting ``to crew, government astronauts, or space
flight participants''.
(d) Monitoring Activities.--Section 50907(a) of title 51, United
States Code, is amended by striking ``crew or space flight participant
training'' and inserting ``crew, government astronaut, or space flight
participant training''.
(e) Additional Suspensions.--Section 50908(d)(1) of title 51, United
States Code, is amended by striking ``to crew or space flight
participants'' each place it appears and inserting ``to crew,
government astronauts, or space flight participants''.
SEC. 6. INDEMNIFICATION FOR SPACE FLIGHT PARTICIPANTS.
Chapter 509 of title 51, United States Code, is amended--
(1) in section 50914(a)(4), by adding at the end the
following:
``(E) space flight participants.''; and
(2) in section 50915(a)(1)--
(A) by striking ``or a contractor'' and inserting ``a
contractor''; and
(B) by striking ``but not against'' and inserting
``or''.
SEC. 7. FEDERAL JURISDICTION.
Section 50914 of title 51, United States Code, is amended by adding
at the end the following:
``(g) Federal Jurisdiction.--Any action or tort arising from a
licensed launch or reentry shall be the sole jurisdiction of the
Federal courts and shall be decided under Federal law.''.
SEC. 8. CROSS-WAIVERS.
Section 50914(b)(1) of title 51, United States Code, is amended to
read as follows: ``(1) A launch or reentry license issued or
transferred under this chapter shall contain a provision requiring the
licensee or transferee to make a reciprocal waiver of claims with its
contractors, subcontractors, and customers, the contractors and
subcontractors of the customers, and any space flight participants,
involved in launch services or reentry services or participating in a
flight under which each party to the waiver agrees to be responsible
for property damage or loss it or they sustain, 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.''.
SEC. 9. ORBITAL TRAFFIC MANAGEMENT.
(a) Sense of Congress.--It is the sense of the Congress that, as none
currently exists, there may be a need for a framework that addresses
space traffic management of United States Government assets and United
States private sector assets to minimize the proliferation of debris
and decrease the congestion of the orbital environment.
(b) Study Required.--Not later than 90 days after the date of
enactment of this Act, the Administrator of the National Aeronautics
and Space Administration shall enter into an arrangement with an
independent, private systems engineering and technical assistance
organization to study frameworks for the management of space traffic
and orbital activities. The study shall include the following:
(1) An assessment of current regulations, Government best
practices, and industry standards that apply to space traffic
management and orbital debris mitigation.
(2) An assessment of current statutory authority granted to
the Federal Communications Commission, the Federal Aviation
Administration, and the National Oceanic and Atmospheric
Administration and how those agencies utilize and coordinate
those authorities.
(3) A review of all space traffic management and orbital
debris requirements under treaties and other international
agreements to which the United States is a signatory, and other
nonbinding international arrangements in which the United
States participates, and the manner in which the Federal
Government complies with those requirements.
(4) An assessment of existing Federal Government assets used
to conduct space traffic management and space situational
awareness.
(5) An assessment of the risk associated with smallsats as
well as any necessary Government coordination for their launch
and utilization.
(6) An assessment of existing private sector information
sharing activities associated with space situational awareness
and space traffic management.
(7) Recommendations related to the framework for the
protection of the health, safety, and welfare of the public and
economic vitality of the space industry.
(c) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall provide to the Committee
on Science, Space, and Technology of the House of Representatives and
the Committee on Commerce, Science, and Transportation of the Senate
the report required in subsection (b).
(d) Department of Defense Authorities.--Congress recognizes the vital
and unique role played by the Department of Defense in protecting
national security assets in space. Nothing in this section shall be
construed to amend authorities granted to the Department of Defense to
safeguard the national security.
SEC. 10. STATE COMMERCIAL LAUNCH FACILITIES.
It is the Sense of Congress that State involvement, development,
ownership, and operation of launch facilities can help enable growth of
the Nation's commercial suborbital and orbital space endeavors and
support both commercial and Government space programs. It is further
the sense of Congress that State launch facilities and the people and
property within the affected launch areas of those State facilities are
subject to risks if the commercial launch vehicle fails or experiences
an anomaly. To ensure the success of the commercial launch industry and
the safety of the people and property in the affected launch areas, it
is the further sense of Congress that States and State launch
facilities should seek to take proper measures to secure their
investments and the safety of third parties from potential damages that
could be suffered from commercial launch activities.
SEC. 11. SPACE SUPPORT VEHICLES STUDY.
Not less than 1 year after the date of enactment of this Act, the
Comptroller General shall submit to the Committee on Science, Space,
and Technology of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate, a report on the
use of space support vehicle services in the commercial space industry.
This report shall include--
(1) the extent to which launch providers rely on such
services as part of their business models;
(2) the statutory, regulatory, and market barriers to the use
of such services; and
(3) recommendations for legislative or regulatory action that
may be needed to ensure reduced barriers to the use of such
services if such use is a requirement of the industry.
SEC. 12. STREAMLINE COMMERCIAL SPACE LAUNCH ACTIVITIES.
(a) Sense of Congress.--It is the sense of Congress that eliminating
duplicative requirements and approvals for commercial launch and
reentry operations will promote and encourage the development of the
commercial space sector.
(b) Reaffirmation of Policy.--Congress reaffirms that the Secretary
of Transportation, in overseeing and coordinating commercial launch and
reentry operations, should--
(1) promote commercial space launches and reentries by the
private sector;
(2) facilitate Government, State, and private sector
involvement in enhancing U.S. launch sites and facilities;
(3) protect public health and safety, safety of property,
national security interests, and foreign policy interests of
the United States; and
(4) consult with the head of another executive agency,
including the Secretary of Defense or the Administrator of the
National Aeronautics and Space Administration, as necessary to
provide consistent application of licensing requirements under
chapter 509 of title 51, United States Code.
(c) Requirements.--
(1) In general.--The Secretary of Transportation under
section 50918 of title 51, United States Code, and subject to
section 50905(b)(2)(C) of that title, shall consult with the
Secretary of Defense, the Administrator of the National
Aeronautics and Space Administration, and the heads of other
executive agencies, as appropriate--
(A) to identify all requirements that are imposed to
protect the public health and safety, safety of
property, national security interests, and foreign
policy interests of the United States relevant to any
commercial launch of a launch vehicle or commercial
reentry of a reentry vehicle; and
(B) to evaluate the requirements identified in
subparagraph (A) and, in coordination with the licensee
or transferee and the heads of the relevant executive
agencies--
(i) determine whether the satisfaction of a
requirement of one agency could result in the
satisfaction of a requirement of another
agency; and
(ii) resolve any inconsistencies and remove
any outmoded or duplicative requirements or
approvals of the Federal Government relevant to
any commercial launch of a launch vehicle or
commercial reentry of a reentry vehicle.
(2) Reports.--Not later than 180 days after the date of
enactment of this Act, and annually thereafter until the
Secretary of Transportation determines no outmoded or
duplicative requirements or approvals of the Federal Government
exist, the Secretary of Transportation, in consultation with
the Secretary of Defense, the Administrator of the National
Aeronautics and Space Administration, the commercial space
sector, and the heads of other executive agencies, as
appropriate, shall submit to the Committee on Commerce,
Science, and Transportation of the Senate, the Committee on
Science, Space, and Technology of the House of Representatives,
and the congressional defense committees a report that includes
the following:
(A) A description of the process for the application
for and approval of a permit or license under chapter
509 of title 51, United States Code, for the commercial
launch of a launch vehicle or commercial reentry of a
reentry vehicle, including the identification of--
(i) any unique requirements for operating on
a United States Government launch site, reentry
site, or launch property; and
(ii) any inconsistent, outmoded, or
duplicative requirements or approvals.
(B) A description of current efforts, if any, to
coordinate and work across executive agencies to define
interagency processes and procedures for sharing
information, avoiding duplication of effort, and
resolving common agency requirements.
(C) Recommendations for legislation that may
further--
(i) streamline requirements in order to
improve efficiency, reduce unnecessary costs,
resolve inconsistencies, remove duplication,
and minimize unwarranted constraints; and
(ii) consolidate or modify requirements
across affected agencies into a single
application set that satisfies the requirements
identified in paragraph (1)(A).
(3) Definitions.--For purposes of this subsection--
(A) any applicable definitions set forth in section
50902 of title 51, United States Code, shall apply;
(B) the terms ``launch'', ``reenter'', and
``reentry'' include landing of a launch vehicle or
reentry vehicle; and
(C) the terms ``United States Government launch
site'' and ``United States Government reentry site''
include any necessary facility, at that location, that
is commercially operated on United States Government
property.
SEC. 13. SPACE LAUNCH SYSTEM UPDATE.
(a) Chapter 701.--
(1) Amendment.--The chapter heading of chapter 701 of title
51, United States Code, is amended by striking ``SPACE
SHUTTLE'' and inserting ``SPACE LAUNCH SYSTEM''.
(2) Conforming amendment.--The item relating to chapter 701
in the table of chapters at the beginning of title 51, United
States Code, is amended by striking ``Space Shuttle'' and
inserting ``Space Launch System''.
(b) Section 70101.--
(1) Amendments.--Section 70101 of title 51, United States
Code, is amended--
(A) in the section heading, by striking ``space
shuttle'' and inserting ``Space Launch System''; and
(B) by striking ``space shuttle'' and inserting
``Space Launch System''.
(2) Conforming amendment.--The item relating section 70101 in
the table of sections for chapter 701 of title 51, United
States Code is amended by striking ``space shuttle'' and
inserting ``Space Launch System''.
(c) Section 70102.--
(1) Amendments.--Section 70102 of title 51, United States
Code, is amended--
(A) in the section heading, by striking ``Space
shuttle'' and inserting ``Space Launch System'';
(B) in subsection (a)(1)(A), by striking ``space
shuttle'' both places it appears and inserting ``Space
Launch System'';
(C) in subsection (a)(1)(A)(i), by inserting
``directly to cis-lunar space and the regions of space
beyond low-Earth orbit'' after ``human presence'';
(D) in subsection (a)(1)(B), by striking ``a shuttle
launch'' and inserting ``a launch of the Space Launch
System'';
(E) in subsection (a)(2), by striking ``a space
shuttle mission'' and inserting ``a mission of the
Space Launch System'';
(F) in subsection (b)--
(i) by striking ``space shuttle'' each place
it appears and inserting ``Space Launch
System''; and
(ii) by striking ``from the shuttle'' and
inserting ``from the Space Launch System'';
(G) in subsection (c), by striking ``space shuttle''
and inserting ``Space Launch System''; and
(H) by adding at the end the following new
subsection:
``(d) Definition.--In this section, the term `Space Launch System'
means the Space Launch System authorized under section 302 of the
National Aeronautics and Space Administration Authorization Act of
2010.''.
(2) Conforming amendment.--The item relating section 70102 in
the table of sections for chapter 701 of title 51, United
States Code is amended by striking ``Space shuttle'' and
inserting ``Space Launch System''.
(d) Section 70103.--
(1) Amendments.--Section 70103 of title 51, United States
Code, is amended--
(A) in the section heading, by striking ``space
shuttle'' and inserting ``Space Launch System''; and
(B) by striking ``space shuttle'' each place it
appears and inserting ``Space Launch System''.
(2) Conforming amendment.--The item relating section 70103 in
the table of sections for chapter 701 of title 51, United
States Code is amended by striking ``space shuttle'' and
inserting ``Space Launch System''.
Committee Statement and Views
PURPOSE AND SUMMARY
The purpose of H.R. 2262, the ``SPACE Act of 2015,'' is to
facilitate a pro-growth environment for the developing
commercial space industry by encouraging private sector
investment, creating more stable and predictable regulatory
conditions, and improving safety.
BACKGROUND AND NEED FOR LEGISLATION
The commercial human space flight industry is still in its
infancy, but has grown significantly since the Commercial Space
Launch Amendments Act of 2004 (CSLAA). Entrepreneurial
companies have raised billions of dollars with the hopes of
taking customers to space. Other companies are investing and
developing the technical capability to explore and utilize
outer space resources. Still others are investing in space-
based remote sensing technologies, an industry which is
experiencing unprecedented growth.
The safety framework that will govern the commercial human
spaceflight industry is, as yet, undetermined. Absent a clear
and balanced safety framework for commercial human spaceflight,
the industry cannot effectively plan for its future, nor can it
compete with international providers of similar services.
Currently, any individual or private entity wishing to
conduct a commercial space launch or reentry in the United
States or operate a launch or reentry site in the United States
must obtain a license from the Federal Aviation Administration
(FAA) to do so. Furthermore, citizens of the United States must
obtain authorization from the FAA to conduct commercial space
launches or reentries or to operate launch or reentry sites
anywhere in the world. The Department of Transportation derives
its authority over commercial space transportation from the
Commercial Space Launch Act (CSLA) and has delegated that
authority to the FAA's Office of the Associate Administrator
for Commercial Space Transportation (AST). AST has the dual
mandate of regulating and promoting the commercial space
transportation industry in the United States.
In 1988, Congress amended the CSLA to indemnify the
commercial space launch industry against successful claims by
uninvolved third parties. The CSLA requires that private launch
companies purchase sufficient liability insurance to cover
potential losses in the event of an accident. This amount is
determined by the FAA on a case-by-case basis depending on its
calculation of the `maximum probable loss' (MPL) from potential
claims by a third party. MPL calculations are capped at $500
million for coverage against suits by private entities. Any
loss incurred between $500 million and $1.5 billion is covered
by the federal government.
Since its enactment, the CSLA's indemnification regime has
been subject to an expiration date. Congress has extended the
expiration date on several occasions. At present, FAA-licensed
launch operators are offered indemnification under the
statutorily prescribed procedures through December 31, 2016.
H.R. 2262 is necessary to achieve several goals that will
promote the development of the emerging commercial human space
flight industry. First, the bill preserves FAA's ability to
regulate commercial human spaceflight in order to protect the
uninvolved public, national security, public health and safety,
safety of property, and foreign policy. Second, the bill
extends the learning period to 2025 to allow the FAA to gain
data to inform framework safety framework that may include
future regulations, and calls for a progress report on the
status of the knowledge the industry and FAA have gained. The
Act also allows for industry to develop consensus standards in
the interim and coordinate those efforts with the FAA. Third,
the bill extends indemnification to 2025 and requires an update
to how the FAA calculates MPL. Fourth, the bill closes a
statutory loophole that would have negated an experimental
permit once a launch license was issued for the same vehicle
design. Fifth, the bill adds ``government astronaut'' as a
category of individuals carried within a spacecraft. Sixth, the
bill includes spaceflight participants in indemnification
coverage and cross waiver requirements. Seventh, the bill
ensures that federal courts review lawsuits resulting from
accidents since the federal government is ultimately the
responsible party as a result of the Launch Liability
Convention. Eighth, the bill requires a report on the current
roles and responsibilities within the government, private
sector, and international community related to space
situational awareness, orbital traffic management, and orbital
debris mitigation measures.
The bill also makes changes to laws affecting the
exploration and utilization of space resources by establishing
a legal framework to govern property rights of resources
obtained from asteroids. It provides civil action for relief
from harmful interference to asteroid utilization operations
subject to certain conditions, directs the President to
facilitate commercial utilization, discourage government
barriers, promote the right of United States commercial
entities to explore outer space and utilize space resources,
and submit to Congress a report containing recommendations on
regulatory uncertainty and authorizations necessary to meet the
international obligations of the U.S.
The bill provides metrics to inform the workload affecting
the Department of Commerce, informs Congress about the
Department's ability to meet the statutory deadline for
adjudicating license applications, strengthens Congressional
oversight to ensure the Department continues to monitor
licensee operations to protect national security throughout the
lifetime of the license, requires Congressional notification of
violations of license conditions, and aids Congress in updating
the existing statute at a future point to reflect the current
state of the art for remote sensing technologies. Moreover, the
bill reinforces Congress' expectation that the federal
government balance national security with maintaining U.S.
private-sector leadership in the field.
Finally, the bill renames the Office of Space
Commercialization the Office of Space Commerce and updates the
functions of this Office so the Office can more effectively
foster the conditions of economic growth and technological
advancement of the U.S. commercial space industry.
COMMERCIAL SPACE LAUNCH
Title I facilitates a pro-growth environment for the
developing commercial space industry by encouraging private
sector investment, creating more stable and predictable
regulatory conditions, and improving safety. This Title will
ensure American leadership in space and foster the development
of advanced space technologies. The Title amends Chapter 509,
Title 51, United States Code.
Sec. 101. Consensus standards
In 2004, Congress passed the Commercial Space Launch
Amendments Act of 2004 (P.L. 108-492) to promote the emerging
commercial human spaceflight industry following the successful
suborbital flights of SpaceShipOne. This legislation included a
``regulatory learning period,'' (51 USC 50905(c)(3)). During
floor debate on the Act, the bill's author, Rep. Dana
Rohrabacher, made clear that the learning period was included
to ensure that the Secretary of Transportation (the Secretary)
would not overregulate the industry before it had the
opportunity to grow. Without launching and operating commercial
human spaceflights, industry and regulators have limited data
to inform safety regulations, which could lead to uninformed or
unnecessary regulations that would stifle the growing industry.
The 2004 Act included a sunset for the learning period
which ended in 2012. However, recognizing there was still a
great deal of testing and data to gather on these human launch
systems, Congress extended the period to October 1, 2015 in the
FAA Modernization and Reform Act of 2012 (Sec. 827 of P.L. 112-
95).
Under the CSLA, launch providers are required to provide
informed consent for spaceflight participants, that ``the
United States Government has not certified the launch vehicle
as safe for carrying crew or space flight participants,'' (51
USC 50905(4)(b)). This informed consent mechanism is meant to
ensure transparency and full disclosure for the participant
that there is an inherent risk in spaceflight and that the
Secretary has not certified the vehicle as safe for the general
public.
The Secretary is obliged to enact only those regulations
which restrict design features or operating practices that (1)
protect the public health and safety, safety of property,
national security interests, and foreign policy interests of
the United States (51 USC 50905(c)(4)); (2) have resulted in a
serious or fatal injury (51 USC 50905 (c)(2)(C)(i)); or (3)
contributed to an unplanned event or series of events during a
licensed or permitted commercial human space flight that posed
a high risk of causing a serious or fatal injury (51 USC 50905
(c)(2)(C)(ii)). This section does not alter those authorities.
The Committee has added clarifying language to 50905(c)
that makes it clear to the Secretary that communication and
transparency are critical to the success of the development of
a safety framework that protects spaceflight participants and
encourages, facilitates, and promotes a vibrant commercial
space industry. The Secretary is not limited, either by statute
or congressional intent, from discussing potential approaches,
potential performance standards, or any other topic related to
the development of safety standards and regulations after the
expiration of the learning period. The Committee encourages the
Secretary to have open and transparent dialogue with the
industry during the learning period that will facilitate and
promote a culture of safety and cooperation with the Federal
Government.
In past extensions of the learning period, Congress chose
to extend the sunset provision of 50905(c) absent benchmarking
requirements to assess the development of the industry. As the
industry continues to grow, arbitrary extensions of the
learning period will be unhelpful to the formulation of policy
as it pertains to the culture of safety and the maturity of
safety systems in the industry. Given this, the Committee
included three new benchmarking tools in the learning period
extension that are unique to this bill and will assist the
Committee in the development of future legislation.
The first benchmarking tool is an amendment to 50905(c)(3)
which creates a series of ``Interim Industry Voluntary
Consensus Standards Reports'' to be issued biennially by the
Secretary in consultation with the Commercial Space
Transportation Advisory Committee (COMSTAC). It is the intent
of the Committee that this report be a collaborative work
product between the Secretary and COMSTAC. Reports issued to
Congress under this section which are not collaborative will be
viewed as in noncompliance with this section. Sections (D) and
(E) of this report offer similar, yet distinct, data points for
the Committee. While section (D) will tell the committee what
has been learned about the voluntary industry consensus
standards or any other construction, best practices, and
commercial space operations, Section (E) will describe the
lessons learned about the development, application, and
acceptance of these voluntary industry consensus standards or
any other construction, best practices, and commercial space
launch operations.
The Committee also included an ``Interim Report on
Knowledge and Operational Experience'' to be provided to the
Committee biennially in parallel with the ``Interim Industry
VoluntaryConsensus Standards Reports.'' As the Committee
evaluates the development of the industry throughout the ten year
extension of the learning period, it will be necessary to benchmark
what was learned by both industry and the Secretary. Although the
United States has over 50 years of government spaceflight experience
regulated under NASA's tightly prescribed standards and management
style, the Secretary has nearly no experience regulated for-profit
space companies developing human spaceflight systems. As the industry
changes during the learning period, the Committee must have a sense of
how both commercial space companies and the Secretary are infusing
``lessons learned'' into the development of a sustainable safety
framework.
Finally, the Committee included a capstone report called
the ``Independent Review.'' This report is meant to evaluate
the totality of the progress made by both the industry and the
Secretary to develop industry consensus standards and assess
the body of knowledge that was gained during the learning
period. The independent review is critical to the Committee as
a final benchmarking tool to assist in the formulation of
either a statutory extension of the learning period or the
construction of a safety framework that may include
regulations. The Committee expects that the COMSTAC and the
Secretary will work together with the independent contractor
chosen for this review, to provide a transparent and definitive
assessment of the progress that has been made.
Sec. 102. International launch competitiveness
The Commercial Space Launch Act Amendments of 1988 (P.L.
100-657) established a tiered risk-sharing regime for third-
party liabilities associated with commercial space launch
(Section 5(a)). The purpose of the regime is to limit the
liability of launch companies for claims made by the uninvolved
public. As the federal government is responsible for the
licensure and range control of launches, the government also
shares in the liabilities associated with the inherently risky
activity of space launch.
There are three tiers to the regime. The first tier is the
responsibility of the launch provider. Congress required that,
as part of the licensure process for the launch, the provider
must purchase insurance that covers third parties, including
the government, for injury, loss or damage. The amount of this
coverage is determined by the Secretary as the maximum probable
loss (MPL). While the MPL could theoretically exceed it, the
statute caps this liability at $500 million (51 USC 50914).
The second tier is the ``indemnification'' portion of the
regime. If a successful claim were to be in excess of the
maximum probable loss, the government is authorized to pay,
subject to appropriation, an amount up to a total of $1.5
billion in claims over the first tier. This ceiling is adjusted
for inflation and, according to a report by the Comptroller
General, represents approximately $2.7 billion as of 2012.
The final tier is the responsibility of the launch
provider. The company or legally responsible party is liable
for claims in excess of the maximum probable loss and the
authorized $2.7 billion indemnification.
The creation of the third-party liability regime in the
CSLAA was debated extensively in the House Committee on
Science, Space, and Technology as well as the House floor. When
the Shuttle's involvement in commercial satellite launches
ended, there were 44 satellite companies that had launch
services agreements with NASA. Following the Challenger
accident and the aggressive campaigns of the Europeans,
Japanese, Chinese, and Soviets to launch those commercial
satellites, Congress passed the CSLAA in 1988 in an attempt to
give a backstop to a fledgling industry in hopes of growing
domestic U.S. capabilities and keeping those launches and
economic activities. Today, the major launching states--China,
France, and Russia--all provide unlimited indemnification
beyond the first-tier insurance requirement. Although the first
tier varies between each regime, the fact remains that
international competitors offer attractive indemnification
incentives to launching entities.
On October 10, 1967, the United States became a signatory
to the Outer Space Treaty. Each signatory of the treaty is
liable under Article VII for third-party damage ``to another
State Party to the Treaty or to its natural or juridical
persons by such object or its component parts on the Earth, in
air space or in outer space, including the moon and other
celestial bodies.'' Additionally, the Liability Convention of
1974 obligates the United States to cover these damages whether
the launch is private or government acquired.
The use of the risk-sharing regime to satisfy treaty
obligations is a necessary precaution under both documents.
Whether the regime was in place or not, the United States would
be subject to possible liability and restitution to the injured
nation. However, it is unlikely that damages paid to a foreign
country would exceed the MPL given the position of our
launching facilities and that the early stages of launch are
typically the most dangerous. It is likely that any damage
would be covered by the first tier of the regime.
The original legislation included a sunset provision to the
launch liability regime which expired five years after passage.
Since its original passage, this sunset has been extended nine
times, most recently for three years until December 31, 2016.
This section would extend the indemnification regime for 10
years. Stopgap extensions of the regime create significant
uncertainty for the launch industry and jeopardize U.S. launch
capabilities. The Committee held multiple hearings including
one on February 4, 2014, wherein the Government Accountability
Office testified that, ``ending federal indemnification could
lead to higher launch prices for U.S.-based launch companies,
making them less price competitive than foreign launch
companies.'' The Committee believes that the extension of the
regime for longer periods of time is imperative for the
stability of the launch market.
In addition to extension of the sunset provision, the
Committee believes an update to the maximum probable loss
calculations required in section 50914 of Title 51 are
necessary to ensure the stability of the regime. In July of
2012, in response to a request from former Senate Commerce,
Science, and Transportation Committee Chairman Senator John
Rockefeller and House Science, Space, and Technology Chairman
Ralph Hall, the Comptroller General did a review of the
Secretary's management of the launch indemnification regime.
This report included recommendations for updates to the
calculations used to determine maximum probable loss. This
section requires that a plan to implement these updates be
provided to Congress within 180 days of enactment. For the
insurance market and launch providers to have faith in the
indemnification regime, it is imperative that these
calculations be updated in a timely and transparent manner such
that Congress will have sufficient data to inform future
legislation.
Sec. 103. Launch license flexibility
This section closes a statutory loophole inadvertently
created in Subsection 2(c) of the Commercial Space Launch Act
Amendments of 2004 (P.L. 108-492). This section invalidates an
experimental permit issued for a particular design of a
reusable suborbital rocket after a license had been issued for
the launch or reentry of a rocket of that same design. The
practical effect of this statute is that operators of launch or
reentry vehicles can only improve on their designs under the
cumbersome licensing process rather than employ the
experimental permit which allows for constant innovation and
development. Additionally, if the company manufacturing the
launch or reentry vehicle is a separate entity from the one
operating it, the manufacturer loses all ability to test and
evolve the launch or reentry vehicle once a license is issued
to the operational company. The Committee believes that this
loophole significantly stifles the ability of the industry to
improve safety systems and mission critical components of their
vehicles.
On February 4, 2014, the author of the 2004 Act, Rep. Dana
Rohrabacher, told the Committee during debate over this
provision that, ``we never intended a company's ability to test
their vehicle or gather additional safety information to be
limited simply because the license has been approved.'' During
this same hearing, Dr. George Nield, Assistant Administrator
for the Office of Commercial Space Transportation, testified
that the law as written ``doesn't make any sense at all.''
The Committee believes that the ability to innovate and
improve safety systems is paramount to the development of a
strong commercial space industry and this provision will do
just that by allowing an experimental permit holder to continue
testing while a license holder conducts operations.
Sec. 104. Government astronauts
The Administration first notified the Committee in November
of 2013 that a change to the CSLA would be needed to support
the success of the Commercial Crew Program at NASA as well as
overall commercial human space launch endeavors. At present,
federal law does not define the term ``government astronaut''
for the purposes of launch licensure by the Secretary. This
presents challenges for the Federal Aviation Administration,
the National Aeronautics and Space Administration, the
Commercial Crew Contractors, and the government astronauts
themselves. At present, there are only two categories of
persons involved in the launch or reentry of a launch vehicle
while on board the vehicle, crew and spaceflight participants.
Crew is defined as ``any employee of a licensee or transferee,
or of a contractor or subcontractor of a licensee or
transferee, who performs activities in the course of that
employment directly relating to the launch, reentry, or other
operation of or in a launch vehicle or reentry vehicle that
carries human beings,'' and a spaceflight participant is
defined as ``an individual, who is not crew, carried within a
launch vehicle or reentry vehicle.'' For government astronauts
to be protected under the licensing structure for launch
vehicles, their roles and responsibilities must be codified in
the statute. The Committee finds the underlying situation
unacceptable and in need of legislative relief.
The Committee received technical assistance from the
Federal Aviation Administration and the National Aeronautics
and Space Administration as to the most effective way to solve
this challenge. While the assistance was helpful, in the
opinion of the Committee, it was incomplete. The original
technical assistance provided to the Committee was overly
broad. The Committee chose to remedy this broader definition by
included a designation responsibility for the Administrator of
the National Aeronautics and Space Administration (the
Administrator). The Committee believes this is a key component
of the government astronaut definition. The Committee believes
the onus should be on the Administrator to determine who does
or does not qualify as a government astronaut based on decades
of training experience.
This section should not be interpreted to allow the
Secretary to exercise any jurisdiction over the interpretation
of what is or is not a government astronaut once the
Administrator has determined and so transmitted such
determination to the Secretary. The final determination as to a
person's designation as such lies with the Administrator. The
Committee expects the Secretary and the Administrator to
develop a memorandum of agreement or some other framework for
the efficient transmission or notification to the Secretary
from the Administrator that a person has been designated by the
Administrator as a government astronaut.
Sec. 105. Indemnification for spaceflight participants
The Commercial Space Launch Act currently makes a
distinction between customers that purchase a launch (whether
it is a payload or a launch for compensation or hire on a
humanspaceflight launch) and a customer who sponsors the launch of a
spaceflight participant and the spaceflight participants themselves.
The result is that there is no requirement for the launch provider to
provide insurance coverage under named additional parties to a launch
(51 USC 50904(a)(4)) or for the government to indemnify the participant
from damages that exceed the maximum probable loss calculation should
there be an accident (51 USC 50915 (a)(1)(B)). This gap in coverage for
the space flight participant results in systemic discrimination against
those spaceflight participants that are not wealthy enough to purchase
third-party liability insurance individually. In practice, it forces
space tourism and human commercial space operations to be the sole
province of those with the means to indemnify themselves. The Committee
feels the ability to participate in human commercial space activities
should be extended to everyone.
This section addresses the inequality presented in the
current law and requires the government and launch providers to
treat spaceflight participants the same way it treats all other
parties to a launch. They are required to be covered under the
launch provider's insurance for the maximum probable loss as an
additional party to the launch but would not bear additional
financial exposure above this requirement.
Sec. 106. Federal jurisdiction
The Launch Liability Convention, to which the U.S. is a
party, places international liability for space launch and
reentry accidents on the federal government. This provision
ensures that federal courts review lawsuits resulting from
accidents since the federal government is responsible under the
Launch Liability Convention, not the states. This provision
also prevents venue shopping to ensure that suits are treated
fairly. It is not the intent for this section to preempt state
tort law. Federal courts should apply state substantive law to
resolve claims and accept a reading of this section that
disfavors pre-emption.
The Committee notes that there is a need to develop
substantive Federal law in this area. Doing so will provide
legal consistency for space transportation activities that
cross state boundaries. Absent substantive Federal law, in
future litigation there may be multiple state substantive laws,
some of which may be in conflict, potentially applicable to the
case in question creating inducements for plaintiffs to forum
shop between state jurisdictions. However, the Committee is
concerned that absent a more defined statutory framework for
the Federal courts to adjudicate such claims there is the
possibility that there may be a gap in substantive Federal law.
For this reason, the intent of the Committee is to prohibit
preemption and instruct the Courts to apply state substantive
law to resolve claims.
Sec. 107. Cross-waivers
Current law requires all parties involved in a launch to
exchange a reciprocal waiver of claims against each other in
the event of an accident or other mishap (51 USC 50914(b)).
This exchange is meant to ensure that, due to the inherently
risky proposition of space travel, all the parties to the
launch understand their rights and responsibilities should they
incur some sort of damage in the course of their participation
in this activity. The CSLAA requires all spaceflight
participants to receive informed consent regarding the
inherently risky activity in which they are participating (51
USC 50905(b)). Although informed consent is required, there is
no statutory enforcement or protection for the launch
providers.
By contrast, in the case of a payload launch, a mutual
waiver of claims is required as part of the license for all the
parties to the launch. This structure has served the space
payload industry and the launch providers very well. This
section of the bill requires the launch of spaceflight
participants to follow the same regulatory practices as payload
providers. The courts have given, and the Secretary has
included in regulations, direction for relief in the case of
gross negligence or willful misconduct. Two separate federal
court cases in the fourth circuit held that claims of gross
negligence are not waived, according to the Court's dicta,
under the 1988 Amendments to the Commercial Space Launch Act.
Martin Marietta Corp. v. Int'l Telecommunications Satellite
Org. (INTELSAT), 763 F. Supp. 1327 (D. Md. 1991) aff'd in part,
rev'd in part sub nom. Martin Marietta Corp. v. Int'l
Telecommunications Satellite Org., 991 F.2d 94 (4th Cir. 1992)
and Martin Marietta Corp. v. Int'l Telecommunications Satellite
Org., 991 F.2d 94 (4th Cir. 1992)).
The Preamble to Part 440 of the FAA's regulations related
to waivers of claim explicitly recognizes that ``Congress
intended the statutory revisions of 1988 and of 2004 to reduce
litigation expenses by requiring launch participants to assume
responsibility for their own losses, except in cases of gross
negligence.'' This is reinforced by previous Committee reports
on updates to the Commercial Space Launch Act. In the
Commercial Space Launch Act Amendments of 2004 (P.L. 108-492),
this Committee made clear in the Committee Report that ``all
parties to the reciprocal waiver agreements will benefit
inasmuch as potential liabilities are eliminated in the case of
a launch mishap. However, the Committee believes that claims of
gross negligence against a licensee, transferee or permittee by
space flight participants or crew are not waived,'' (House
Report 108-429). The Committee reiterates that it is not the
intent of this legislation to prohibit claims of gross
negligence or willful misconduct under the exchange of cross-
waivers.
Sec. 108. Orbital traffic management
The Act requires a report on the current roles and
responsibilities within the government, private sector, and
international community related to space situational awareness,
orbital traffic management, and orbital debris mitigation
measures.
As the commercial space launch market continues to grow,
the Committee recognizes that there may be a need for Congress
to enumerate specific responsibilities or authorities for space
traffic management and the mitigation and prevention of orbital
debris to a specific agency or agencies. The Committee does not
have enough data to determine the need for such authorities.
The Committee expects this report to be broad in scope, but
at a minimum address the issues described in the bill text.
This reporting requirement should not be interpreted by any
federal agency as legislative intent to alter the authorities
granted to the Department of Defense to safeguard the national
security.
Sec. 109. State commercial launch facilities
The proliferation of state and local launch facilities in
the last decade has been dramatic. The Committee recognizes
that the regulations and federal statutes that govern space
launch activities can be cumbersome. This provision finds that
states and launch operators should seek to ensure that their
activities and investments are properly protected in the event
of an accident. The Committee does not believe that it is the
role of the federal government to force states or private
launch providers to purchase insurance to cover their assets,
but does believe it behooves the parties involved in such
activities to ensure that their assets are protected. This
provision should not be interpreted by any federal agency to
broaden the scope of the third-party liability insurance or
third-party risk sharing regime to cover state and local launch
facilities.
Sec. 110. Space support vehicles study
As the human commercial space launch industry has grown,
several secondary industries have also emerged. One such
industry, the space support vehicles services industry,
presents unique challenges for launch operators, support
vehicle services companies, and the government. These space
support vehicle operators offer training services to
spaceflight participants who may be party to a launch under the
Secretary's launch licensing authorities.
The purpose of this section is to provide more information
to Congress on the use of these services so as to assist the
Committee in legislative efforts that will lead to the safe use
of experimental aircraft in support of U.S. commercial space
flight activities.
Sec. 111. Streamline commercial space launch activities
The development and proliferation of regulations from
federal agencies which are responsible for various stages of a
space mission could become a barrier to some small and medium
sized businesses. In an effort to increase efficiency and
transparency and reduce government bureaucracy, the Committee
directs the Secretary, in consultation with other appropriate
federal agencies, to identify duplicative requirements so that
Congress may provide legislative relief in the future.
Sec. 112. Space Launch System update
This section is meant to provide additional flexibility for
the National Aeronautics and Space Administration, and other
federal agencies as necessary, to utilize the unique
capabilities of the Space Launch System (SLS) for the benefit
of the commercial space industry.
The Aerospace Safety Advisory Panel (ASAP) and the NASA
Advisory Council (NAC) have warned about the dangers of a low
flight rate for the SLS as currently planned. By amending this
statute, the federal government will be able to utilize this
important system for many purposes. Expanding the use of SLS
will increase its launch rate which will, in turn, increase
safety.
This section will allow SLS to carry out a wide range of
functions for the Federal government, including the Department
of Defense, on a reimbursable basis. This will decrease costs
of the overall program while increasing safety and mission
assurance.
It is the intent of the Committee to preserve the
protections for commercial entities that currently exist under
the law to ensure the SLS to be in competition with the
commercial space industry.
LEGISLATIVE HISTORY
During the 113th and 114th Congresses, the House Committee
on Science, Space, and Technology held 14 hearings and five
markups relevant to this bill.
On February 6, 2013, the House Committee on Science, Space,
and Technology held a hearing titled ``American
Competitiveness: The Role of Research and Development'' to
examine the status of and outlook for America's science and
technology enterprise, examining the impact of research and
development (R&D) on the lives of the American people and
looking ahead to potential breakthrough innovations for the
future. Witnesses discussed the historical context for American
R&D, how it is divided between public and private investments,
where the U.S. ranks globally on innovation and investment, and
what the future may hold for American innovation. The Committee
heard testimony from Mr. Richard Templeton, President and CEO,
Texas Instruments; Dr. Shirley Ann Jackson, President,
Rensselaer Polytechnic Institute; and Dr. Charles Vest,
President, National Academy of Engineering.
On February 28, 2013, the Subcommittee on Space held a
hearing titled ``A Review of the Space Leadership Preservation
Act'' to receive testimony on legislation (H.R. 6491) first
introduced in the last Congress and re-introduced for the 113th
Congress. This hearing informed the Science, Space, and
Technology Committee's consideration of the policies,
organization, programs, andbudget in re-authorizing the
National Aeronautics and Space Administration in this Congress. The
Subcommittee heard testimony from The Honorable Frank R. Wolf, Chairman
of the Commerce-Justice-Science Subcommittee, The Honorable John
Culberson, Mr. A Thomas Young, Chair of the Board for SAIC (testifying
on his own behalf), and Mr. Elliot Pulham, Chief Executive Officer of
The Space Foundation.
On April 24, 2014, the Subcommittee on Space held a hearing
titled ``An Overview of the National Aeronautics and Space
Administration Budget for Fiscal Year 2014'' with NASA
Administrator Charles Bolden to review the Administration's FY
2014 budget request for the National Aeronautics and Space
Administration and examine its priorities and challenges.
On June 19, 2013, the Subcommittee on Space held a hearing
titled, ``NASA Authorization Act of 2013.'' The purpose of the
hearing was to review a discussion draft of the National
Aeronautics and Space Administration (NASA) Authorization Act
of 2013. The most recent NASA Authorization Act, passed in
2010, authorized NASA for three years.
On July 10, 2013, the Subcommittee on Space met to consider
H.R. 2687, the National Aeronautics and Space Administration
Authorization Act of 2013. This measure contained many
provisions that affect commercial space.
On July 18, 2013, the Committee on Science, Space, and
Technology met to consider H.R. 2687, the National Aeronautics
and Space Administration Authorization Act of 2013. This
measure contained many provisions that affect commercial space.
On November 20, 2013, the Subcommittee on Space held a
hearing titled ``Commercial Space.'' The hearing examined ways
in which companies are utilizing federal support and government
policies to grow their commercial businesses in space launch,
communications, GPS, remote sensing, weather monitoring,
suborbital tourism and science experimentation, and human
spaceflight. The witnesses addressed what government policies
would be helpful to the U.S. commercial space industry.
Witnesses also addressed the policies contained in H.R. 3038,
the Suborbital and Orbital Advancement and Regulatory
Streamlining (SOARS) Act. The first witness panel consisted of
the Honorable Kevin McCarthy, Majority Whip of the U.S. House
of Representatives. The second panel consisted of: Ms. Patricia
Cooper, President of the Satellite Industry Association; Mr.
Stuart Witt, CEO and General Manager of the Mojave Air and
Space Port; and Dennis Tito, Chairman of the Inspiration Mars
Foundation.
On February 4, 2014, the Subcommittee on Space held a
hearing titled ``Necessary Updates to the Commercial Space
Launch Act.'' The industry has grown since the passage of the
Commercial Space Launch Act of 1984 (P.L. 98-575) thirty years
ago, and this law has been amended several times since then.
The Commercial Space Launch Act (CSLA) provides authority to
the FAA to license launches and indemnify launch providers from
third-party claims should an accident occur. The law also
provides a framework for the FAA's authority. This hearing
examined the various changes in the industry and what, if any,
accompanying changes to the Commercial Space Launch Act may be
needed going forward. The Committee heard from three witnesses:
Dr. George Nield, Associate Administrator for Commercial Space
Transportation at the Federal Aviation Administration; Dr.
Alicia Cackley, Director of Financial Markets and Community
Investment Team at the Government Accountability Office; and
Dr. Henry Hertzfeld, Research Professor of Space Policy and
International Affairs at the Elliot School of International
Affairs at George Washington University.
On March 27, 2014, the Subcommittee on Space of the House
Committee on Science, Space, and Technology held a hearing
titled ``A Review of the National Aeronautics and Space
Administration Budget for Fiscal Year 2015'' to review the
Administration's fiscal year 2015 (FY15) budget request for the
National Aeronautics and Space Administration and examine its
priorities and challenges. The hearing had one witness, the
Honorable Charles F. Bolden, Jr., Administrator of the National
Aeronautics and Space Administration.
On December 11, 2013, the Committee on Science, Space, and
Technology met to consider H.R. 2413, the Weather Forecasting
Improvement Act of 2013. This measure contained provisions
regarding public safety and commercial satellites.
On April 9, 2014, the Subcommittee on Space met to consider
H.R. 4412, the National Aeronautics and Space Administration
Authorization Act of 2014. The Act contained several provisions
regarding barriers to commercial use of space.
On April 29, 2014, the Committee on Science, Space, and
Technology met to consider H.R. 4412, the National Aeronautics
and Space Administration Authorization Act of 2014. The Act
contained several provisions regarding barriers to commercial
use of space.
On May 9, 2014, the Space Subcommittee held a hearing
titled ``Space Traffic Management: How to Prevent a Real Life
`Gravity'.'' There are currently three agencies that play a
primary role in tracking and mitigation of orbital debris that
may be hazardous to operational satellites or life and property
on Earth, if the debris is large enough upon reentering the
Earth's atmosphere. The Joint Functional Component Command for
Space (JFCC SPACE), part of the Department of Defense, is
responsible for tracking orbital debris, the Federal
Communications Commission (FCC) asserts jurisdiction for
mitigating orbital debris from satellites, and the Federal
Aviation Administration (FAA) regulates orbital debris from
launch and reentry activities. This hearing explored the roles
and responsibilities of the Department of Defense, FAA, and FCC
in policing orbital debris, what authorities are currently
granted by Congress to federal agencies, and how they
coordinate these activities. The Subcommittee heard from five
witnesses: Lt. Gen. John ``Jay'' Raymond--Commander, 14th Air
Force, Air Force Space Command; and Commander, Joint Functional
Component Command for Space, U.S. Strategic Command, Mr. George
Zamka--Deputy Associate Administrator, Office of Commercial
Space Transportation, Federal Aviation Administration, Mr.
Robert Nelson--Chief Engineer, International Bureau, Federal
Communications Commission, Mr. P.J. Blount--Adjunct Professor,
Air and Space Law, University of Mississippi School of Law, and
Mr. Brian Weeden--Technical Advisor, Secure World Foundation.
On June 25, 2014, the Science, Space, and Technology
Committee held a hearing titled ``Pathways to Exploration: A
Review of the Future of Human Space Exploration.'' Section 204
of the NASA Authorization Act of 2010 required the agency to
enter into a contract with the National Academies to review the
future of human spaceflight. In 2012, the National Research
Council appointed an ad hoc Committee on Human Spaceflight co-
chaired by Governor Daniels and Dr. Lunine. This hearing
reviewed the conclusions and recommendations of the Committee's
report Pathways to Exploration--Rationales and Approaches for a
U.S. Program of Human Space Exploration released in June 2014.
The Committee heard from two witnesses: Governor Mitch Daniels,
Co-Chair of the Report and President, Purdue University and Dr.
Jonathan Lunine, Co-Chair of the Report and Director, Cornell
University's Center for Radiophysics and Space Research.
On September 10, 2014, the hearing titled ``Exploring Our
Solar System: The ASTEROIDS Act as a Key Step'' gave the
Committee an overview of the variety of issues facing the
planetary science community, including challenges the community
is facing due to the low inventories of Pu-238 for deep space
missions, NASA's proposed budget for planetary science, and
potential commercial interests. Witnesses were also asked to
comment on H.R. 5063, the American Space Technology for
Exploring Resource Opportunities In Deep Space (ASTEROIDS) Act.
The Subcommittee heard from five witnesses: Dr. Jim Green, NASA
Planetary Science Division Director, Dr. Jim Bell, Professor of
Earth and Space Science Exploration, Arizona State University,
and President, Board of Directors, The Planetary Society, Dr.
Mark Sykes, CEO and Director, Planetary Science Institute,
Professor Joanne Gabrynowicz, Professor Emerita, Director
Emerita, Journal of Space Law Editor-in-Chief Emerita,
University of Mississippi, Dr. Philip Christensen, Co-Chair,
NRC Committee on Astrobiology and Planetary Science (CAPS),
Chair, Mars Panel, NRC Planetary Decadal Survey, Regents
Professor, Arizona State University.
On December 10, 2014, the Subcommittee on Space held a
hearing titled ``An Update on the Space Launch System and
Orion: Monitoring the Development of the Nation's Deep Space
Exploration Capabilities'' to receive testimony regarding the
heavy-lift Space Launch System (SLS) and the Orion Multipurpose
Crew Vehicle. This hearing informed the Committee on SLS and
Orion issues relating to funding, staying on schedule, and NASA
authorization among others. The Subcommittee heard testimony
from Bill Gerstenmaier, Associate Administrator for Human
Exploration and Operations Mission Directorate, NASA and
Christina Chaplain, Director, Government Accountability Office.
On February 12, 2015 the Environment and Oversight
Subcommittees held a joint hearing titled ``Bridging the Gap:
America's Weather Satellites and Weather Forecasting.'' The
purpose of the hearing was to provide an update of the
operations and development of National Oceanic and Atmospheric
Administration's polar-orbiting and geostationary weather
satellite programs and discuss recent Government Accountability
Office reports on the two programs. In addition, the hearing
discussed the use of satellite data in operational and research
weather models and prediction methods. The Subcommittees
received testimony from Mr. David Powner, Director, Information
Technology Management Issues, Government Accountability Office;
Dr. Stephen Volz, Assistant Administrator, National
Environmental Satellite, Data, and Information Services,
National Oceanic and Atmospheric Administration; and Mr. Steven
Clarke, Director, Joint Agency Satellite Division, National
Aeronautics and Space Administration. The Subcommittees were
also joined for questioning by Dr. Alexander MacDonald,
President, American Meteorological Society; Director, Earth
System Research Laboratory, National Oceanic and Atmospheric
Administration; and Chief Science Advisor, Office of Oceanic
and Atmospheric Research, National Oceanic and Atmospheric
Administration; and Mr. John Murphy, Director, Office of
Science and Technology, National Weather Service, National
Oceanic and Atmospheric Administration.
On February 27, 2015, the Subcommittee on Space held a
hearing titled ``The Commercial Crew Program: Challenges and
Opportunities'' to review NASA's efforts to develop and acquire
safe, reliable, and affordable crew transfer services to the
International Space Station (ISS). The Subcommittee examined
the progress of NASA's Commercial Crew Program, its acquisition
model, and future challenges for the program as the contractors
move towards certification. The Subcommittee heard from four
witnesses: Mr. Bill Gerstenmaier, Associate Administrator,
Human Exploration and Operations Mission Directorate, National
Aeronautics and Space Administration (NASA); Vice Admiral
Joseph Dyer, USN (Ret.), Chairman, Aerospace Safety Advisory
Panel, National Aeronautics and Space Administration (NASA);
Mr. John Mulholland, Vice President and Program Manager,
Commercial Programs, The Boeing Company; and Dr. Garret
Reisman, Director, Crew Operations, Space Exploration
Technologies Corporation.
On April 16, 2015, the Space Subcommittee held a hearing
titled ``An Overview of the Budget Proposal for the National
Aeronautics and Space Administration for Fiscal Year 2016.''
The purpose of the hearing was to review the Administration's
fiscal year 2016 (FY16) budget request for the National
Aeronautics and Space Administration (NASA) and examine the
Administration's priorities and challenges. The sole witness
was the Honorable Charles F. Bolden, Jr., Administrator,
National Aeronautics and Space Administration (NASA).
Committee Views
SECTION-BY-SECTION
COMMERCIAL SPACE LAUNCH
Title I facilitates a pro-growth environment for the
developing commercial space industry by encouraging private
sector investment, creating more stable and predictable
regulatory conditions, and improving safety. This Title will
ensure American leadership in space and foster the development
of advanced space technologies. The Title amends Chapter 509,
Title 51, United States Code.
Sec. 101. Consensus standards
In 2004, Congress passed the Commercial Space Launch
Amendments Act of 2004 (P.L. 108-492) to promote the emerging
commercial human spaceflight industry following the successful
suborbital flights of SpaceShipOne. This legislation included a
``regulatory learning period,'' (51 USC 50905(c)(3)). During
floor debate on the Act, the bill's author, Rep. Dana
Rohrabacher, made clear that the learning period was included
to ensure that the Secretary of Transportation (the Secretary)
would not overregulate the industry before it had the
opportunity to grow. Without launching and operating commercial
human spaceflights, industry and regulators have limited data
to inform safety regulations, which could lead to uninformed or
unnecessary regulations that would stifle the growing industry.
The 2004 Act included a sunset for the learning period
which ended in 2012. However, recognizing there was still a
great deal of testing and data to gather on these human launch
systems, Congress extended the period to October 1, 2015 in the
FAA Modernization and Reform Act of 2012 (Sec. 827 of P.L. 112-
95).
Under the CSLA, launch providers are required to provide
informed consent for spaceflight participants, that ``the
United States Government has not certified the launch vehicle
as safe for carrying crew or space flight participants,'' (51
USC 50905(4)(b)). This informed consent mechanism is meant to
ensure transparency and full disclosure for the participant
that there is an inherent risk in spaceflight and that the
Secretary has not certified the vehicle as safe for the general
public.
The Secretary is obliged to enact only those regulations
which restrict design features or operating practices that (1)
protect the public health and safety, safety of property,
national security interests, and foreign policy interests of
the United States (51 USC 50905(c)(4)); (2) have resulted in a
serious or fatal injury (51 USC 50905(c)(2)(C)(i)); or (3)
contributed to an unplanned event or series of events during a
licensed or permitted commercial human space flight that posed
a high risk of causing a serious or fatal injury (51 USC
50905(c)(2)(C)(ii)). This section does not alter those
authorities.
The Committee has added clarifying language to 50905(c)
that makes it clear to the Secretary that communication and
transparency are critical to the success of the development of
a safety framework that protects spaceflight participants and
encourages, facilitates, and promotes a vibrant commercial
space industry. The Secretary is not limited, either by statute
or congressional intent, from discussing potential approaches,
potential performance standards, or any other topic related to
the development of safety standards and regulations after the
expiration of the learning period. The Committee encourages the
Secretary to have open and transparent dialogue with the
industry during the learning period that will facilitate and
promote a culture of safety and cooperation with the Federal
Government.
In past extensions of the learning period, Congress chose
to extend the sunset provision of 50905(c) absent benchmarking
requirements to assess the development of the industry. As the
industry continues to grow, arbitrary extensions of the
learning period will be unhelpful to the formulation of policy
as it pertains to the culture of safety and the maturity of
safety systems in the industry. Given this, the Committee
included three new benchmarking tools in the learning period
extension that are unique to this bill and will assist the
Committee in the development of future legislation.
The first benchmarking tool is an amendment to 50905(c)(3)
which creates a series of ``Interim Industry Voluntary
Consensus Standards Reports'' to be issued biennially by the
Secretary in consultation with the Commercial Space
Transportation Advisory Committee (COMSTAC). It is the intent
of the Committee that this report be a collaborative work
product between the Secretary and COMSTAC. Reports issued to
Congress under this section which are not collaborative will be
viewed as in noncompliance with this section. Sections (D) and
(E) of this report offer similar, yet distinct, data points for
the Committee. While section (D) will tell the committee what
has been learned about the voluntary industry consensus
standards or any other construction, best practices, and
commercial space operations, Section (E) will describe the
lessons learned about the development, application, and
acceptance of these voluntary industry consensus standards or
any other construction, best practices, and commercial space
launch operations.
The Committee also included an ``Interim Report on
Knowledge and Operational Experience'' to be provided to the
Committee biennially in parallel with the ``Interim Industry
Voluntary Consensus Standards Reports.'' As the Committee
evaluates the development of the industry throughout the ten
year extension of the learning period, it will be necessary to
benchmark what was learned by both industry and the Secretary.
Although the United States has over 50 years of government
spaceflight experience regulated under NASA's tightly
prescribed standards and management style, the Secretary has
nearly no experience regulated for-profit space companies
developing human spaceflight systems. As the industry changes
during the learning period, the Committee must have a sense of
how both commercial space companies and the Secretary are
infusing ``lessons learned'' into the development of a
sustainable safety framework.
Finally, the Committee included a capstone report called
the ``Independent Review.'' This report is meant to evaluate
the totality of the progress made by both the industry and the
Secretary to develop industry consensus standards and assess
the body of knowledge that was gained during the learning
period. The independent review is critical to the Committee as
a final benchmarking tool to assist in the formulation of
either a statutory extension of the learning period or the
construction of a safety framework that may include
regulations. The Committee expects that the COMSTAC and the
Secretary will work together with the independent contractor
chosen for this review, to provide a transparent and definitive
assessment of the progress that has been made.
Sec. 102. International launch competitiveness
The Commercial Space Launch Act Amendments of 1988 (P.L.
100-657) established a tiered risk-sharing regime for third-
party liabilities associated with commercial space launch
(Section 5(a)). The purpose of the regime is to limit the
liability of launch companies for claims made by the uninvolved
public. As the federal government is responsible for the
licensure and range control of launches, the government also
shares in the liabilities associated with the inherently risky
activity of space launch.
There are three tiers to the regime. The first tier is the
responsibility of the launch provider. Congress required that,
as part of the licensure process for the launch, the provider
must purchase insurance that covers third parties, including
the government, for injury, loss or damage. The amount of this
coverage is determined by the Secretary as the maximum probable
loss (MPL). While the MPL could theoretically exceed it, the
statute caps this liability at $500 million (51 USC 50914).
The second tier is the ``indemnification'' portion of the
regime. If a successful claim were to be in excess of the
maximum probable loss, the government is authorized to pay,
subject to appropriation, an amount up to a total of $1.5
billion in claims over the first tier. This ceiling is adjusted
for inflation and, according to a report by the Comptroller
General, represents approximately $2.7 billion as of 2012.
The final tier is the responsibility of the launch
provider. The company or legally responsible party is liable
for claims in excess of the maximum probable loss and the
authorized $2.7 billion indemnification.
The creation of the third-party liability regime in the
CSLAA was debated extensively in the House Committee on
Science, Space, and Technology as well as the House floor. When
the Shuttle's involvement in commercial satellite launches
ended, there were 44 satellite companies that had launch
services agreements with NASA. Following the Challenger
accident and the aggressive campaigns of the Europeans,
Japanese, Chinese, and Soviets to launch those commercial
satellites, Congress passed the CSLAA in 1988 in an attempt to
give a backstop to a fledgling industry in hopes of growing
domestic U.S. capabilities and keeping those launches and
economic activities. Today, the major launching states--China,
France, and Russia--all provide unlimited indemnification
beyond the first-tier insurance requirement. Although the first
tier varies between each regime, the fact remains that
international competitors offer attractive indemnification
incentives to launching entities.
On October 10, 1967, the United States became a signatory
to the Outer Space Treaty. Each signatory of the treaty is
liable under Article VII for third-party damage ``to another
State Party to the Treaty or to its natural or juridical
persons by such object or its component parts on the Earth, in
air space or in outer space, including the moon and other
celestial bodies.'' Additionally, the Liability Convention of
1974 obligates the United States to cover these damages whether
the launch is private or government acquired.
The use of the risk-sharing regime to satisfy treaty
obligations is a necessary precaution under both documents.
Whether the regime was in place or not, the United States would
be subject to possible liability and restitution to the injured
nation. However, it is unlikely that damages paid to a foreign
country would exceed the MPL given the position of our
launching facilities and that the early stages of launch are
typically the most dangerous. It is likely that any damage
would be covered by the first tier of the regime.
The original legislation included a sunset provision to the
launch liability regime which expired five years after passage.
Since its original passage, this sunset has been extended nine
times, most recently for three years until December 31, 2016.
This section would extend the indemnification regime for 10
years. Stopgap extensions of the regime create significant
uncertainty for the launch industry and jeopardize U.S. launch
capabilities. The Committee held multiple hearings including
one on February 4, 2014, wherein the Government Accountability
Office testified that, ``ending federal indemnification could
lead to higher launch prices for U.S.-based launch companies,
making them less price competitive than foreign launch
companies.'' The Committee believes that the extension of the
regime for longer periods of time is imperative for the
stability of the launch market.
In addition to extension of the sunset provision, the
Committee believes an update to the maximum probable loss
calculations required in section 50914 of Title 51 are
necessary toensure the stability of the regime. In July of
2012, in response to a request from former Senate Commerce, Science,
and Transportation Committee Chairman Senator John Rockefeller and
House Science, Space, and Technology Chairman Ralph Hall, the
Comptroller General did a review of the Secretary's management of the
launch indemnification regime. This report included recommendations for
updates to the calculations used to determine maximum probable loss.
This section requires that a plan to implement these updates be
provided to Congress within 180 days of enactment. For the insurance
market and launch providers to have faith in the indemnification
regime, it is imperative that these calculations be updated in a timely
and transparent manner such that Congress will have sufficient data to
inform future legislation.
Sec. 103. Launch license flexibility
This section closes a statutory loophole inadvertently
created in Subsection 2(c) of the Commercial Space Launch Act
Amendments of 2004 (P.L. 108-492). This section invalidates an
experimental permit issued for a particular design of a
reusable suborbital rocket after a license had been issued for
the launch or reentry of a rocket of that same design. The
practical effect of this statute is that operators of launch or
reentry vehicles can only improve on their designs under the
cumbersome licensing process rather than employ the
experimental permit which allows for constant innovation and
development. Additionally, if the company manufacturing the
launch or reentry vehicle is a separate entity from the one
operating it, the manufacturer loses all ability to test and
evolve the launch or reentry vehicle once a license is issued
to the operational company. The Committee believes that this
loophole significantly stifles the ability of the industry to
improve safety systems and mission critical components of their
vehicles.
On February 4, 2014, the author of the 2004 Act, Rep. Dana
Rohrabacher, told the Committee during debate over this
provision that, ``we never intended a company's ability to test
their vehicle or gather additional safety information to be
limited simply because the license has been approved.'' During
this same hearing, Dr. George Nield, Assistant Administrator
for the Office of Commercial Space Transportation, testified
that the law as written ``doesn't make any sense at all.''
The Committee believes that the ability to innovate and
improve safety systems is paramount to the development of a
strong commercial space industry and this provision will do
just that by allowing an experimental permit holder to continue
testing while a license holder conducts operations.
Sec. 104. Government astronauts
The Administration first notified the Committee in November
of 2013 that a change to the CSLA would be needed to support
the success of the Commercial Crew Program at NASA as well as
overall commercial human space launch endeavors. At present,
federal law does not define the term ``government astronaut''
for the purposes of launch licensure by the Secretary. This
presents challenges for the Federal Aviation Administration,
the National Aeronautics and Space Administration, the
Commercial Crew Contractors, and the government astronauts
themselves. At present, there are only two categories of
persons involved in the launch or reentry of a launch vehicle
while on board the vehicle, crew and spaceflight participants.
Crew is defined as ``any employee of a licensee or transferee,
or of a contractor or subcontractor of a licensee or
transferee, who performs activities in the course of that
employment directly relating to the launch, reentry, or other
operation of or in a launch vehicle or reentry vehicle that
carries human beings,'' and a spaceflight participant is
defined as ``an individual, who is not crew, carried within a
launch vehicle or reentry vehicle.'' For government astronauts
to be protected under the licensing structure for launch
vehicles, their roles and responsibilities must be codified in
the statute. The Committee finds the underlying situation
unacceptable and in need of legislative relief.
The Committee received technical assistance from the
Federal Aviation Administration and the National Aeronautics
and Space Administration as to the most effective way to solve
this challenge. While the assistance was helpful, in the
opinion of the Committee, it was incomplete. The original
technical assistance provided to the Committee was overly
broad. The Committee chose to remedy this broader definition by
including a designation responsibility for the Administrator of
the National Aeronautics and Space Administration (the
Administrator). The Committee believes this is a key component
of the government astronaut definition. The Committee believes
the onus should be on the Administrator to determine who does
or does not qualify as a government astronaut based on decades
of training experience.
This section should not be interpreted to allow the
Secretary to exercise any jurisdiction over the interpretation
of what is or is not a government astronaut once the
Administrator has determined and so transmitted such
determination to the Secretary. The final determination as to a
person's designation as such lies with the Administrator. The
Committee expects the Secretary and the Administrator to
develop a memorandum of agreement or some other framework for
the efficient transmission or notification to the Secretary
from the Administrator that a person has been designated by the
Administrator as a government astronaut.
Sec. 105. Indemnification for spaceflight participants
The Commercial Space Launch Act currently makes a
distinction between customers that purchase a launch (whether
it is a payload or a launch for compensation or hire on a human
spaceflight launch) and a customer who sponsors the launch of a
spaceflight participant and the spaceflight participants
themselves. The result is that there is no requirement for the
launch provider to provide insurance coverage under named
additional parties to a launch (51 USC 50904(a)(4)) or for the
government to indemnify the participant from damages that
exceed the maximum probable loss calculation should there be an
accident (51 USC 50915 (a)(1)(B)). This gap in coverage for the
space flight participant results in systemic discrimination
against those spaceflight participants that are not wealthy
enough to purchase third-party liability insurance
individually. In practice, it forces space tourism and human
commercial space operations to be the sole province of those
with the means to indemnify themselves. The Committee feels the
ability to participate in human commercial space activities
should be extended to everyone.
This section addresses the inequality presented in the
current law and requires the government and launch providers to
treat spaceflight participants the same way it treats all other
parties to a launch. They are required to be covered under the
launch provider's insurance for the maximum probable loss as an
additional party to the launch but would not bear additional
financial exposure above this requirement.
Sec. 106. Federal jurisdiction
The Launch Liability Convention, to which the U.S. is a
party, places international liability for space launch and
reentry accidents on the federal government. This provision
ensures that federal courts review lawsuits resulting from
accidents since the federal government is responsible under the
Launch Liability Convention, not the states. This provision
also prevents venue shopping to ensure that suits are treated
fairly. It is not the intent for this section to preempt state
tort law. Federal courts should apply state substantive law to
resolve claims and accept a reading of this section that
disfavors pre-emption.
The Committee notes that there is a need to develop
substantive Federal law in this area. Doing so will provide
legal consistency for space transportation activities that
cross state boundaries. Absent substantive Federal law, in
future litigation there may be multiple state substantive laws,
some of which may be in conflict, potentially applicable to the
case in question creating inducements for plaintiffs to forum
shop between state jurisdictions. However, the Committee is
concerned that absent a more defined statutory framework for
the Federal courts to adjudicate such claims there is the
possibility that there may be a gap in substantive Federal law.
For this reason, the intent of the Committee is to prohibit
preemption and instruct the Courts to apply state substantive
law to resolve claims.
Sec. 107. Cross-waivers
Current law requires all parties involved in a launch to
exchange a reciprocal waiver of claims against each other in
the event of an accident or other mishap (51 USC 50914(b)).
This exchange is meant to ensure that, due to the inherently
risky proposition of space travel, all the parties to the
launch understand their rights and responsibilities should they
incur some sort of damage in the course of their participation
in this activity. The CSLAA requires all spaceflight
participants to receive informed consent regarding the
inherently risky activity in which they are participating (51
USC 50905(b)). Although informed consent is required, there is
no statutory enforcement or protection for the launch
providers.
By contrast, in the case of a payload launch, a mutual
waiver of claims is required as part of the license for all the
parties to the launch. This structure has served the space
payload industry and the launch providers very well. This
section of the bill requires the launch of spaceflight
participants to follow the same regulatory practices as payload
providers. The courts have given, and the Secretary has
included in regulations, direction for relief in the case of
gross negligence or willful misconduct. Two separate federal
court cases in the fourth circuit held that claims of gross
negligence are not waived, according to the Court's dicta,
under the 1988 Amendments to the Commercial Space Launch Act.
Martin Marietta Corp. v. Int'l Telecommunications Satellite
Org. (INTELSAT), 763 F. Supp. 1327 (D. Md. 1991) aff'd in part,
rev'd in part sub nom. Martin Marietta Corp. v. Int'l
Telecommunications Satellite Org., 991 F.2d 94 (4th Cir. 1992)
and Martin Marietta Corp. v. Int'l Telecommunications Satellite
Org., 991 F.2d 94 (4th Cir. 1992))
The Preamble to Part 440 of the FAA's regulations related
to waivers of claim explicitly recognizes that ``Congress
intended the statutory revisions of 1988 and of 2004 to reduce
litigation expenses by requiring launch participants to assume
responsibility for their own losses, except in cases of gross
negligence.'' This is reinforced by previous Committee reports
on updates to the Commercial Space Launch Act. In the
Commercial Space Launch Act Amendments of 2004 (P.L. 108-492),
this Committee made clear in the Committee Report that ``all
parties to the reciprocal waiver agreements will benefit
inasmuch as potential liabilities are eliminated in the case of
a launch mishap. However, the Committee believes that claims of
gross negligence against a licensee, transferee or permittee by
space flight participants or crew are not waived,'' (House
Report 108-429). The Committee reiterates that it is not the
intent of this legislation to prohibit claims of gross
negligence or willful misconduct under the exchange of cross-
waivers.
Sec. 108. Orbital traffic management
The Act requires a report on the current roles and
responsibilities within the government, private sector, and
international community related to space situational awareness,
orbital traffic management, and orbital debris mitigation
measures.
As the commercial space launch market continues to grow,
the Committee recognizes that there may be a need for Congress
to enumerate specific responsibilities or authorities for space
traffic management and the mitigation and prevention of orbital
debris to a specific agency or agencies. The Committee does not
have enough data to determine the need for such authorities.
The Committee expects this report to be broad in scope, but
at a minimum address the issues described in the bill text.
This reporting requirement should not be interpreted by any
federal agency as legislative intent to alter the authorities
granted to the Department of Defense to safeguard the national
security.
Sec. 109. State commercial launch facilities
The proliferation of state and local launch facilities in
the last decade has been dramatic. The Committee recognizes
that the regulations and federal statutes that govern space
launch activities can be cumbersome. This provision finds that
states and launch operators should seek to ensure that their
activities and investments are properly protected in the event
of an accident. The Committee does not believe that it is the
role of the federal government to force states or private
launch providers to purchase insurance to cover their assets,
but does believe it behooves the parties involved in such
activities to ensure that their assets are protected. This
provision should not be interpreted by any federal agency to
broaden the scope of the third-party liability insurance or
third-party risk sharing regime to cover state and local launch
facilities.
Sec. 110. Space support vehicles study
As the human commercial space launch industry has grown,
several secondary industries have also emerged. One such
industry, the space support vehicles services industry,
presents unique challenges for launch operators, support
vehicle services companies, and the government. These space
support vehicle operators offer training services to
spaceflight participants who may be party to a launch under the
Secretary's launch licensing authorities.
The purpose of this section is to provide more information
to Congress on the use of these services so as to assist the
Committee in legislative efforts that will lead to the safe use
of experimental aircraft in support of U.S. commercial space
flight activities.
Sec. 111. Streamline commercial space launch activities
The development and proliferation of regulations from
federal agencies which are responsible for various stages of a
space mission could become a barrier to some small and medium
sized businesses. In an effort to increase efficiency and
transparency and reduce government bureaucracy, the Committee
directs the Secretary, in consultation with other appropriate
federal agencies, to identify duplicative requirements so that
Congress may provide legislative relief in the future.
Sec. 112. Space Launch System update
This section is meant to provide additional flexibility for
the National Aeronautics and Space Administration, and other
federal agencies as necessary, to utilize the unique
capabilities of the Space Launch System (SLS) for the benefit
of the commercial space industry.
The Aerospace Safety Advisory Panel (ASAP) and the NASA
Advisory Council (NAC) have warned about the dangers of a low
flight rate for the SLS as currently planned. By amending this
statute, the federal government will be able to utilize this
important system for many purposes. Expanding the use of SLS
will increase its launch rate which will, in turn, increase
safety.
This section will allow SLS to carry out a wide range of
functions for the Federal government, including the Department
of Defense, on a reimbursable basis. This will decrease costs
of the overall program while increasing safety and mission
assurance.
It is the intent of the Committee to preserve the
protections for commercial entities that currently exist under
the law to ensure the SLS to be in competition with the
commercial space industry.
Explanation of Amendments
An amendment offered by Mr. Knight alters the underlying
bill to extend the learning period from December 31, 2023 to
December 31, 2025 and extend the indemnification period from
December 31, 2023 to December 31, 2025. The amendment also adds
additional reporting requirements for the ``Interim Industry
Voluntary Consensus Standards Report'' and the ``Interim Report
on Knowledge and Operational Experience.'' The amendment was
adopted.
An amendment offered by Mr. Bridenstine adds a new section
to the bill that directs the Comptroller General to provide to
the relevant Congressional Committees a report on the use of
space support vehicle services in the commercial space
industry. The Amendment was adopted.
An amendment offered by Mr. Posey adds a new section to the
bill that requires the Secretary of transportation, in
consultation with other relevant agencies, to eliminate
duplicative requirements for commercial space launch
operations. The amendment also requires the Secretary to report
on such duplicative requirements and recommendations for
legislative relief, if needed. The amendment was adopted.
An amendment offered by Mr. Brooks adds a new section to
the bill that updates Chapter 701 of Title 51 to reflect the
use of new launch vehicles for launches under certain
circumstances by replacing all mentions of ``Space Shuttle''
with ``Space Launch System.'' This amendment was adopted.
Committee Consideration
On May 13, 2015, the Committee met in open session and
ordered reported favorably the bill, H.R. 2262, as amended, by
roll call vote, a quorum being present.
Roll Call Votes
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill facilitates a pro-growth environment for the
developing commercial space industry by encouraging private
sector investment, creating more stable and predictable
regulatory conditions, and improving safety. As such this bill
does not relate to employment or access to public services and
accommodations.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives for H.R. 2262 are to ensure American
leadership in space and foster the development of advanced
space technologies.
Duplication of Federal Programs
No provision of H.R. 2262 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee estimates that enacting H.R. 2262 does not
direct the completion of any specific rule makings within the
meaning of 5 U.S.C. 551.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4) requires a statement as to
whether the provisions of the reported include unfunded
mandates. In compliance with this requirement the Committee has
received a letter from the Congressional Budget Office included
herein.
Earmark Identification
H.R. 2262 does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 2262. However, clause 3(d)(3)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 2262 from the Director of
Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 18, 2015.
Hon. Lamar Smith,
Chairman, Committee on Science, Space and Technology,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2262, the SPACE
Act of 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Marin
Burnett.
Sincerely,
Keith Hall.
Enclosure.
H.R. 2262--SPACE Act of 2015
H.R. 2262 would direct the Department of Transportation
(DOT), the National Aeronautics and Space Administration
(NASA), and the Government Accountability Office to submit
various reports to the Congress regarding commercial space
operations and services, industry practices, as well as the
potential liabilities associated with commercial space
launches. Additionally, the bill would require DOT and NASA to
contract with independent organizations to assess the
commercial space industry and current regulations on space
traffic and orbital activities.
Based on information from those agencies and prior spending
levels for related and similar activities, CBO estimates that
implementing H.R. 2262 would cost about $5 million over the
next few years, assuming appropriation of the necessary
amounts. Enacting H.R. 2262 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
H.R. 2262 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would impose no
costs on state, local, or tribal governments.
H.R. 2262 would impose private-sector mandates, as defined
in UMRA, on the commercial space flight industry by imposing
additional requirements on licensees that engage in manned
space flights. The bill would require a licensee, as a
condition of the license, to enter into a reciprocal waiver of
claims with space flight participants (passengers). Based on
information about current industry practice, CBO expects that
licensees would enter into such waivers in the absence of the
bill. Consequently, the cost of the mandate would be
negligible. The bill also would require licensees to obtain
insurance to cover passengers' activities. Based on information
from industry experts, CBO expects that the cost of that
mandate also would be small. Consequently, CBO estimates that
the aggregate cost of the mandates would fall below the annual
threshold established in UMRA for private-sector mandates ($154
million in 2015, adjusted annually for inflation).
The CBO staff contacts for this estimate are Marin Burnett
(for federal costs) and Amy Petz (for the private-sector
impact). The estimate was approved by Theresa Gullo, Assistant
Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
TITLE 51, UNITED STATES CODE
Subtitle I--General
Chap. Sec.
Definitions..................................................10101
* * * * * * *
Subtitle VII--Access to Space
70101se of [Space Shuttle] Space Launch System or Alternatives........
* * * * * * *
Subtitle V--PROGRAMS TARGETING COMMERCIAL OPPORTUNITIES
* * * * * * *
CHAPTER 509--COMMERCIAL SPACE LAUNCH ACTIVITIES
* * * * * * *
Sec. 50902. Definitions
In this chapter--
(1) ``citizen of the United States'' means--
(A) an individual who is a citizen of the
United States;
(B) an entity organized or existing under the
laws of the United States or a State; or
(C) an entity organized or existing under the
laws of a foreign country if the controlling
interest (as defined by the Secretary of
Transportation) is held by an individual or
entity described in subclause (A) or (B) of
this clause.
(2) ``crew'' means any employee of a licensee or
transferee, or of a contractor or subcontractor of a
licensee or transferee, who performs activities in the
course of that employment directly relating to the
launch, reentry, or other operation of or in a launch
vehicle or reentry vehicle that carries human beings.
(3) ``executive agency'' has the same meaning given
that term in section 105 of title 5.
(4) ``government astronaut'' means an individual
designated as such by the Administrator of the National
Aeronautics and Space Administration, pursuant
requirements established by the Administrator, who--
(A) is an employee of--
(i) the United States Government,
including the United States Armed
Forces; or
(ii) a foreign government that is a
party to the Intergovernmental
Agreement Among the Government of
Canada, Governments of Member States of
the European Space Agency, the
Government of Japan, the Government of
the Russian Federation, and the
Government of the United States of
America Concerning Cooperation on the
Civil International Space Station,
signed on January 29, 1998; and
(B) is carried within a launch vehicle or
reentry vehicle in the course of his or her
employment, which may include performance of
activities directly relating to the launch,
reentry, or other operation of the launch
vehicle or reentry vehicle.
[(4)] (5) ``launch'' means to place or try to place a
launch vehicle or reentry vehicle and any payload,
crew, government astronaut, or space flight participant
from Earth--
(A) in a suborbital trajectory;
(B) in Earth orbit in outer space; or
(C) otherwise in outer space,
including activities involved in the preparation of a
launch vehicle or payload for launch, when those
activities take place at a launch site in the United
States.
[(5)] (6) ``launch property'' means an item built
for, or used in, the launch preparation or launch of a
launch vehicle.
[(6)] (7) ``launch services'' means--
(A) activities involved in the preparation of
a launch vehicle, payload, crew (including crew
training), government astronaut, or space
flight participant for launch; and
(B) the conduct of a launch.
[(7)] (8) ``launch site'' means the location on Earth
from which a launch takes place (as defined in a
license the Secretary issues or transfers under this
chapter) and necessary facilities at that location.
[(8)] (9) ``launch vehicle'' means--
(A) a vehicle built to operate in, or place a
payload or human beings in, outer space; and
(B) a suborbital rocket.
[(9)] (10) ``obtrusive space advertising'' means
advertising in outer space that is capable of being
recognized by a human being on the surface of the Earth
without the aid of a telescope or other technological
device.
[(10)] (11) ``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.
[(11)] (12) except in section 50904(c), ``permit''
means an experimental permit issued under section
50906.
[(12)] (13) ``person'' means an individual and an
entity organized or existing under the laws of a State
or country.
[(13)] (14) ``reenter'' and ``reentry'' mean to
return or attempt to return, purposefully, a reentry
vehicle and its payload, crew, government astronauts,
or space flight participants, if any, from Earth orbit
or from outer space to Earth.
[(14)] (15) ``reentry services'' means--
(A) activities involved in the preparation of
a reentry vehicle and payload, crew (including
crew training), government astronaut, or space
flight participant, if any, for reentry; and
(B) the conduct of a reentry.
[(15)] (16) ``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).
[(16)] (17) ``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 Earth orbit or outer space to Earth, substantially
intact.
[(17) ``space flight participant'' means an
individual, who is not crew, carried within a launch
vehicle or reentry vehicle.]
(18) ``space flight participant'' means an
individual, who is not crew or a government astronaut,
carried within a launch vehicle or reentry vehicle.
[(18)] (19) ``State'' means a State of the United
States, the District of Columbia, and a territory or
possession of the United States.
[(19)] (20) unless and until regulations take effect
under section 50922(c)(2), ``suborbital rocket'' means
a vehicle, rocket-propelled in whole or in part,
intended for flight on a suborbital trajectory, and the
thrust of which is greater than its lift for the
majority of the rocket-powered portion of its ascent.
[(20)] (21) ``suborbital trajectory'' means the
intentional flight path of a launch vehicle, reentry
vehicle, or any portion thereof, whose vacuum
instantaneous impact point does not leave the surface
of the Earth.
[(21)] (22) ``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;
(D) the customer's contractors or
subcontractors involved in launch services or
reentry services; or
(E) crew, government astronauts, or space
flight participants.
[(22)] (23) ``United States'' means the States of the
United States, the District of Columbia, and the
territories and possessions of the United States.
* * * * * * *
Sec. 50904. Restrictions on launches, operations, and reentries
(a) Requirement.--A license issued or transferred under this
chapter, or a permit, is required for the following:
(1) for a person to launch a launch vehicle or to
operate a launch site or reentry site, or to reenter a
reentry vehicle, in the United States.
(2) for a citizen of the United States (as defined in
section 50902(1)(A) or (B) of this title) to launch a
launch vehicle or to operate a launch site or reentry
site, or to reenter a reentry vehicle, outside the
United States.
(3) for a citizen of the United States (as defined in
section 50902(1)(C) of this title) to launch a launch
vehicle or to operate a launch site or reentry site, or
to reenter a reentry vehicle, outside the United States
and outside the territory of a foreign country unless
there is an agreement between the United States
Government and the government of the foreign country
providing that the government of the foreign country
has jurisdiction over the launch or operation or
reentry.
(4) for a citizen of the United States (as defined in
section 50902(1)(C) of this title) to launch a launch
vehicle or to operate a launch site or reentry site, or
to reenter a reentry vehicle, in the territory of a
foreign country if there is an agreement between the
United States Government and the government of the
foreign country providing that the United States
Government has jurisdiction over the launch or
operation or reentry.
Notwithstanding this subsection, a permit shall not authorize a
person to operate a launch site or reentry site.
(b) Compliance With Payload Requirements.--The holder of a
license or permit under this chapter may launch or reenter a
payload only if the payload complies with all requirements of
the laws of the United States related to launching or
reentering a payload.
(c) Preventing Launches and Reentries.--The Secretary of
Transportation shall establish whether all required licenses,
authorizations, and permits required for a payload have been
obtained. If no license, authorization, or permit is required,
the Secretary may prevent the launch or reentry if the
Secretary decides the launch or reentry would jeopardize the
public health and safety, safety of property, or national
security or foreign policy interest of the United States.
(d) Single License or Permit.--The Secretary of
Transportation shall ensure that only 1 license or permit is
required from the Department of Transportation to conduct
activities involving crew, government astronauts, or space
flight participants, including launch and reentry, for which a
license or permit is required under this chapter. The Secretary
shall ensure that all Department of Transportation regulations
relevant to the licensed or permitted activity are satisfied.
Sec. 50905. 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
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 accepting an
application in accordance with criteria established pursuant to
subsection (b)(2)(D). The Secretary shall transmit to the
Committee on Science of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate a written notice not later than 30 days after any
occurrence when the Secretary has not taken action on a license
application within the deadline established by this subsection.
(2) In carrying out paragraph (1), the Secretary may
establish procedures for safety approvals of launch
vehicles, reentry vehicles, safety systems, processes,
services, or personnel (including approval procedures
for the purpose of protecting the health and safety of
[crews and space flight participants] crew, government
astronauts, and space flight participants, to the
extent permitted by subsections (b) and (c)) 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 or permit 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, operation, or
reentry complies with representations stated in
the application;
(B) any additional requirement necessary to
protect the public health and safety, safety of
property, national security interests, and
foreign policy interests of the United States;
(C) by regulation that a requirement of a law
of the United States not be a requirement for a
license or permit 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;
(D) additional license requirements, for a
launch vehicle carrying a human being for
compensation or hire, necessary to protect the
health and safety of crew, government
astronauts, or space flight participants, only
if such requirements are imposed pursuant to
final regulations issued in accordance with
subsection (c); and
(E) regulations establishing criteria for
accepting or rejecting an application for a
license or permit under this chapter within 60
days after receipt of such application.
(3) The Secretary may waive a requirement, including
the requirement to obtain a license, for an individual
applicant if the Secretary decides that the waiver is
in the public interest and will not jeopardize the
public health and safety, safety of property, and
national security and foreign policy interests of the
United States. The Secretary may not grant a waiver
under this paragraph that would permit the launch or
reentry of a launch vehicle or a reentry vehicle
without a license or permit if a human being will be on
board.
(4) The holder of a license or a permit under this
chapter may launch or reenter crew only if--
(A) the crew has received training and has
satisfied medical or other standards specified
in the license or permit in accordance with
regulations promulgated by the Secretary;
(B) the holder of the license or permit has
informed any individual serving as crew in
writing, prior to executing any contract or
other arrangement to employ that individual
(or, in the case of an individual already
employed as of the date of enactment of the
Commercial Space Launch Amendments Act of 2004,
as early as possible, but in any event prior to
any launch in which the individual will
participate as crew), that the United States
Government has not certified the launch vehicle
as safe for carrying crew or space flight
participants; and
(C) the holder of the license or permit and
crew have complied with all requirements of the
laws of the United States that apply to crew.
(5) The holder of a license or a permit under this
chapter may launch or reenter a space flight
participant only if--
(A) in accordance with regulations
promulgated by the Secretary, the holder of the
license or permit has informed the space flight
participant in writing about the risks of the
launch and reentry, including the safety record
of the launch or reentry vehicle type, and the
Secretary has informed the space flight
participant in writing of any relevant
information related to risk or probable loss
during each phase of flight gathered by the
Secretary in making the determination required
by section 50914(a)(2) and (c);
(B) the holder of the license or permit has
informed any space flight participant in
writing, prior to receiving any compensation
from that space flight participant or (in the
case of a space flight participant not
providing compensation) otherwise concluding
any agreement to fly that space flight
participant, that the United States Government
has not certified the launch vehicle as safe
for carrying crew or space flight participants;
(C) in accordance with regulations
promulgated by the Secretary, the space flight
participant has provided written informed
consent to participate in the launch and
reentry and written certification of compliance
with any regulations promulgated under
paragraph (6)(A); and
(D) the holder of the license or permit has
complied with any regulations promulgated by
the Secretary pursuant to paragraph (6).
(6)(A) The Secretary may issue regulations requiring
space flight participants to undergo an appropriate
physical examination prior to a launch or reentry under
this chapter. This subparagraph shall cease to be in
effect three years after the date of enactment of the
Commercial Space Launch Amendments Act of 2004.
(B) The Secretary may issue additional
regulations setting reasonable requirements for
space flight participants, including medical
and training requirements. Such regulations
shall not be effective before the expiration of
3 years after the date of enactment of the
Commercial Space Launch Amendments Act of 2004.
(c) Safety Regulations.--(1) The Secretary may issue
regulations governing the design or operation of a launch
vehicle to protect the health and safety of crew, government
astronauts, and space flight participants.
(2) Regulations issued under this subsection shall--
(A) describe how such regulations would be
applied when the Secretary is determining
whether to issue a license under this chapter;
(B) apply only to launches in which a vehicle
will be carrying a human being for compensation
or hire;
(C) be limited to restricting or prohibiting
design features or operating practices that--
(i) have resulted in a serious or
fatal injury (as defined in 49 CFR 830,
as in effect on November 10, 2004) [to
crew or space flight participants] to
crew, government astronauts, or space
flight participants during a licensed
or permitted commercial human space
flight; or
(ii) contributed to an unplanned
event or series of events during a
licensed or permitted commercial human
space flight that posed a high risk of
causing a serious or fatal injury (as
defined in 49 CFR 830, as in effect on
November 10, 2004) [to crew or space
flight participants] to crew,
government astronauts, or space flight
participants; and
(D) be issued with a description of the
instance or instances when the design feature
or operating practice being restricted or
prohibited contributed to a result or event
described in subparagraph (C).
[(3) Beginning on October 1, 2015, the Secretary may
propose regulations under this subsection without
regard to paragraph (2)(C) and (D). Any such
regulations shall take into consideration the evolving
standards of safety in the commercial space flight
industry.]
(3) Interim industry voluntary consensus standards
report.--The Secretary, in consultation with the
Commercial Space Transportation Advisory Committee, or
its successor organization, shall provide a report to
the Committee on Science, Space, and Technology of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate on the
progress of the commercial space transportation
industry in developing voluntary consensus standards or
any other construction that promotes best practices to
improve the industry. Such report shall include, at a
minimum--
(A) any voluntary industry consensus
standards or any other construction that have
been accepted by the industry at large;
(B) the identification of areas that have the
potential to become voluntary industry
consensus standards or another potential
construction that are currently under
consideration by the industry at large;
(C) an assessment from the Secretary on the
general progress of the industry in adopting
voluntary consensus standards or any other
construction;
(D) lessons learned about voluntary industry
consensus standards or any other construction,
best practices, and commercial space launch
operations;
(E) any lessons learned associated with the
development, potential application, and
acceptance of voluntary industry consensus
standards or any other construction, best
practices, and commercial space launch
operations; and
(F) recommendations, findings, or
observations from the Commercial Space
Transportation Advisory Committee, or its
successor organization, on the progress of the
industry in developing industry consensus
standards or any other construction.
This report, with the appropriate updates in the
intervening periods, shall be transmitted to such
committees no later than December 31, 2016, December
31, 2018, December 31, 2020, and December 31, 2022.
Each report shall describe and assess the progress
achieved as of 6 months prior to the specified
transmittal date.
(4) Interim report on knowledge and operational
experience.--The Secretary shall provide a report to
the Committee on Science, Space, and Technology of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the of the Senate on the
status of the knowledge and operational experience
acquired by the industry while providing flight
services for compensation or hire to support the
development of a safety framework. Interim reports
shall by transmitted to such committees no later than
December 31, 2018, December 31, 2020, and December 31,
2022. Each report shall describe and assess the
progress achieved as of 6 months prior to the specified
transmittal date.
(5) Independent review.--No later than December 31,
2023, an independent, private systems engineering and
technical assistance organization or standards
development organization contracted by the Secretary
shall provide to the Committee on Science, Space, and
Technology of the House of Representatives and the
Committee on Commerce, Science, and Transportation of
the Senate an assessment of the readiness of the
commercial space industry and the Federal Government to
transition to a safety framework that may include
regulations. As part of the review, the contracted
organization shall evaluate--
(A) the progress of the commercial space
industry in adopting industry voluntary
standards or any other construction as reported
by the Secretary in the interim assessments
included in reports provided under paragraph
(4); and
(B) the knowledge and operational experience
obtained by the commercial space industry while
providing services for compensation or hire as
reported by the Secretary in the interim
knowledge and operational reports provided
under paragraph (4).
(6) Learning period.--Beginning on December 31, 2025,
the Secretary may propose regulations under this
subsection without regard to paragraph (2)(C) and (D).
The development of any such regulations shall take into
consideration the evolving standards of the commercial
space flight industry as identified through the reports
published under paragraphs (3) and (4).
(7) Communication and transparency.--Nothing in this
subsection shall be construed to limit the authority of
the Secretary of Transportation to discuss potential
approaches, potential performance standards, or any
other topic related to this subsection with the
commercial space industry including observations,
findings, and recommendations from the Commercial Space
Transportation Advisory Committee, or its successor
organization, prior to the issuance of a notice of
proposed rulemaking. Such discussions shall not be
construed to permit the Secretary to promulgate
industry regulations except as otherwise provided in
this section.
[(4)] (8) Nothing in this subsection shall be
construed to limit the authority of the Secretary to
issue requirements or regulations to protect the public
health and safety, safety of property, national
security interests, and foreign policy interests of the
United States.
(d) Procedures and Timetables.--The Secretary shall establish
procedures and timetables that expedite review of a license or
permit application and reduce the regulatory burden for an
applicant.
Sec. 50906. Experimental permits
(a) A person may apply to the Secretary of Transportation for
an experimental permit under this section in the form and
manner the Secretary prescribes. Consistent with the protection
of the public health and safety, safety of property, and
national security and foreign policy interests of the United
States, the Secretary, not later than 120 days after receiving
an application pursuant to this section, shall issue a permit
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 90 days after receiving an application. The
Secretary shall transmit to the Committee on Science of the
House of Representatives and Committee on Commerce, Science,
and Transportation of the Senate a written notice not later
than 15 days after any occurrence when the Secretary has failed
to act on a permit within the deadline established by this
section.
(b) In carrying out subsection (a), the Secretary may
establish procedures for safety approvals of launch vehicles,
reentry vehicles, safety systems, processes, services, or
personnel that may be used in conducting commercial space
launch or reentry activities pursuant to a permit.
(c) In order to encourage the development of a commercial
space flight industry, the Secretary may when issuing permits
use the authority granted under section 50905(b)(2)(C).
(d) The Secretary may issue a permit only for reusable
suborbital rockets that will be [launched or reentered]
launched or reentered under that permit solely for--
[(1) research and development to test new design
concepts, new equipment, or new operating techniques;]
(1) research and development to test design concepts,
equipment, or operating techniques;
(2) showing compliance with requirements as part of
the process for obtaining a license under this chapter;
or
(3) crew training [prior to obtaining a license] for
a launch or reentry using the design of the rocket for
which the permit would be issued.
(e) Permits issued under this section shall--
(1) authorize an unlimited number of launches and
reentries for a particular [suborbital rocket design]
suborbital rocket or rocket design for the uses
described in subsection (d); and
(2) specify the type of modifications that may be
made to the suborbital rocket without changing the
design to an extent that would invalidate the permit.
(f) Permits shall not be transferable.
[(g) A permit may not be issued for, and a permit that has
already been issued shall cease to be valid for, a particular
design for a reusable suborbital rocket after a license has
been issued for the launch or reentry of a rocket of that
design.]
(g) The Secretary may issue a permit under this section
notwithstanding any license issued under this chapter. The
issuance of a license under this chapter shall not invalidate a
permit under this section.
(h) No person may operate a reusable suborbital rocket under
a permit for carrying any property or human being for
compensation or hire.
(i) For the purposes of sections 50907, 50908, 50909, 50910,
50912, 50914, 50917, 50918, 50919, and 50923 of this chapter--
(1) a permit shall be considered a license;
(2) the holder of a permit shall be considered a
licensee;
(3) a vehicle operating under a permit shall be
considered to be licensed; and
(4) the issuance of a permit shall be considered
licensing.
This subsection shall not be construed to allow the transfer of
a permit.
Sec. 50907. 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, at a site used for [crew or space flight
participant training] crew, government astronaut, or space
flight participant training, 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 sections
50904(c), 50905, and 50906 of this title. A licensee must
cooperate with an observer carrying out this subsection.
(b) Contracts.--To the extent provided in advance in an
appropriation law, the Secretary may make a contract with a
person to carry out subsection (a) of this section.
Sec. 50908. Effective periods, and modifications, suspensions, and
revocations, of licenses
(a) Effective Periods of Licenses.--The Secretary of
Transportation shall specify the period for which a license
issued or transferred under this chapter is in effect.
(b) Modifications.--(1) On the initiative of the Secretary or
on application of the licensee, the Secretary may modify a
license issued or transferred under this chapter if the
Secretary decides the modification will comply with this
chapter.
(2) The Secretary shall modify a license issued or
transferred under this chapter whenever a modification
is needed for the license to be in conformity with a
regulation that was issued pursuant to section 50905(c)
after the issuance of the license. This paragraph shall
not apply to permits.
(c) Suspensions and Revocations.--The Secretary may suspend
or revoke a license if the Secretary decides that--
(1) the licensee has not complied substantially with
a requirement of this chapter or a regulation
prescribed under this chapter; or
(2) the suspension or revocation is necessary to
protect the public health and safety, the safety of
property, or a national security or foreign policy
interest of the United States.
(d) Additional Suspensions.--(1) The Secretary may suspend a
license when a previous launch or reentry under the license has
resulted in a serious or fatal injury (as defined in 49 CFR
830, as in effect on November 10, 2004) [to crew or space
flight participants] to crew, government astronauts, or space
flight participants and the Secretary has determined that
continued operations under the license are likely to cause
additional serious or fatal injury (as defined in 49 CFR 830,
as in effect on November 10, 2004) [to crew or space flight
participants] to crew, government astronauts, or space flight
participants.
(2) Any suspension imposed under this subsection
shall be for as brief a period as possible and, in any
event, shall cease when the Secretary--
(A) has determined that the licensee has
taken sufficient steps to reduce the likelihood
of a recurrence of the serious or fatal injury;
or
(B) has modified the license pursuant to
subsection (b) to sufficiently reduce the
likelihood of a recurrence of the serious or
fatal injury.
(3) This subsection shall not apply to permits.
(e) Effective Periods of Modifications, Suspensions, and
Revocations.--Unless the Secretary specifies otherwise, a
modification, suspension, or revocation under this section
takes effect immediately and remains in effect during a review
under section 50912 of this title.
(f) Notification.--The Secretary shall notify the licensee in
writing of the decision of the Secretary under this section and
any action the Secretary takes or proposes to take based on the
decision.
* * * * * * *
Sec. 50914. Liability insurance and financial responsibility
requirements
(a) General Requirements.--(1) When a launch or reentry
license is issued or transferred under this chapter, the
licensee or transferee shall obtain liability insurance or
demonstrate financial responsibility in amounts to compensate
for the maximum probable loss from claims by--
(A) a third party for death, bodily injury,
or property damage or loss resulting from an
activity carried out under the license; and
(B) the United States Government against a
person for damage or loss to Government
property resulting from an activity carried out
under the license.
(2) The Secretary of Transportation shall determine
the amounts required under paragraph (1)(A) and (B) of
this subsection, after consulting with the
Administrator of the National Aeronautics and Space
Administration, the Secretary of the Air Force, and the
heads of other appropriate executive agencies.
(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.
(E) space flight participants.
(b) Reciprocal Waiver of Claims.--[(1) A launch or reentry
license issued or transferred under this chapter shall contain
a provision requiring the licensee or transferee to make a
reciprocal waiver of claims with its contractors,
subcontractors, and customers, and contractors and
subcontractors of the customers, involved in launch services or
reentry services under which each party to the waiver agrees to
be responsible for property damage or loss it sustains, or for
personal injury to, death of, or property damage or loss
sustained by its own employees resulting from an activity
carried out under the applicable license.] (1) A launch or
reentry license issued or transferred under this chapter shall
contain a provision requiring the licensee or transferee to
make a reciprocal waiver of claims with its contractors,
subcontractors, and customers, the contractors and
subcontractors of the customers, and any space flight
participants, involved in launch services or reentry services
or participating in a flight under which each party to the
waiver agrees to be responsible for property damage or loss it
or they sustain, 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, crew, space flight participants, 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 or by space flight
participants, 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.
(c) Determination of Maximum Probable Losses.--The Secretary
of Transportation shall determine the maximum probable losses
under subsection (a)(1)(A) and (B) of this section associated
with an activity under a license not later than 90 days after a
licensee or transferee requires a determination and submits all
information the Secretary requires. The Secretary shall amend
the determination as warranted by new information.
(d) Annual Report.--(1) Not later than November 15 of each
year, the Secretary of Transportation shall submit to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Science of the House of
Representatives a report on current determinations made under
subsection (c) of this section related to all issued licenses
and the reasons for the determinations.
(2) Not later than May 15 of each year, the Secretary
of Transportation shall review the amounts specified in
subsection (a)(3)(A) of this section and submit a
report to Congress that contains proposed adjustments
in the amounts to conform with changed liability
expectations and availability of insurance on the world
market. The proposed adjustment takes effect 30 days
after a report is submitted.
(e) Launches or Reentries Involving Government Facilities and
Personnel.--The Secretary of Transportation shall establish
requirements consistent with this chapter for proof of
financial responsibility and other assurances necessary to
protect the Government and its executive agencies and personnel
from liability, death, bodily injury, or property damage or
loss as a result of a launch or operation of a launch site or
reentry site or a reentry involving a facility or personnel of
the Government. The Secretary may not relieve the Government of
liability under this subsection for death, bodily injury, or
property damage or loss resulting from the willful misconduct
of the Government or its agents.
(f) Collection and Crediting Payments.--The head of a
department, agency, or instrumentality of the Government shall
collect a payment owed for damage or loss to Government
property under its jurisdiction or control resulting from an
activity carried out under a launch or reentry license issued
or transferred under this chapter. The payment shall be
credited to the current applicable appropriation, fund, or
account of the department, agency, or instrumentality.
(g) Federal Jurisdiction.--Any action or tort arising from a
licensed launch or reentry shall be the sole jurisdiction of
the Federal courts and shall be decided under Federal law.
Sec. 50915. 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] a contractor or
subcontractor of a customer, [but not against] or a space
flight participant, 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 50914(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.
(2) The Secretary may not provide for paying a part
of a claim for which death, bodily injury, or property
damage or loss results from willful misconduct by the
licensee or transferee. To the extent insurance
required under section 50914(a)(1)(A) of this title is
not available to cover a successful third party
liability claim because of an insurance policy
exclusion the Secretary decides is usual for the type
of insurance involved, the Secretary may provide for
paying the excluded claims without regard to the
limitation contained in section 50914(a)(1).
(b) Notice, Participation, and Approval.--Before a payment
under subsection (a) of this section is made--
(1) notice must be given to the Government of a
claim, or a civil action related to the claim, against
a party described in subsection (a)(1) of this section
for death, bodily injury, or property damage or loss;
(2) the Government must be given an opportunity to
participate or assist in the defense of the claim or
action; and
(3) the Secretary must approve any part of a
settlement to be paid out of appropriations of the
Government.
(c) Withholding Payments.--The Secretary may withhold a
payment under subsection (a) of this section if the Secretary
certifies that the amount is not reasonable. However, the
Secretary shall deem to be reasonable the amount of a claim
finally decided by a court of competent jurisdiction.
(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.
(3) A compensation plan submitted to Congress under
paragraph (2) of this subsection shall--
(A) have an identification number; and
(B) be submitted to the Senate and the House
of Representatives on the same day and when the
Senate and House are in session.
(e) Congressional Resolutions.--(1) In this subsection,
``resolution''--
(A) means a joint resolution of Congress the
matter after the resolving clause of which is
as follows: ``That the Congress approves the
compensation plan numbered _____ submitted to
the Congress on _____ __, 20__.'', with the
blank spaces being filled appropriately; but
(B) does not include a resolution that
includes more than one compensation plan.
(2) The Senate shall consider under this subsection a
compensation plan requiring additional appropriations
or legislative authority not later than 60 calendar
days of continuous session of Congress after the date
on which the plan is submitted to Congress.
(3) A resolution introduced in the Senate shall be
referred immediately to a committee by the President of
the Senate. All resolutions related to the same plan
shall be referred to the same committee.
(4)(A) If the committee of the Senate to which a
resolution has been referred does not report the
resolution within 20 calendar days after it is
referred, a motion is in order to discharge the
committee from further consideration of the resolution
or to discharge the committee from further
consideration of the plan.
(B) A motion to discharge may be made only by
an individual favoring the resolution and is
highly privileged (except that the motion may
not be made after the committee has reported a
resolution on the plan). Debate on the motion
is limited to one hour, to be divided equally
between those favoring and those opposing the
resolution. An amendment to the motion is not
in order. A motion to reconsider the vote by
which the motion is agreed to or disagreed to
is not in order.
(C) If the motion to discharge is agreed to
or disagreed to, the motion may not be renewed
and another motion to discharge the committee
from another resolution on the same plan may
not be made.
(5)(A) After a committee of the Senate reports, or is
discharged from further consideration of, a resolution,
a motion to proceed to the consideration of the
resolution is in order at any time, even though a
similar previous motion has been disagreed to. The
motion is highly privileged and is not debatable. An
amendment to the motion is not in order. A motion to
reconsider the vote by which the motion is agreed to or
disagreed to is not in order.
(B) Debate on the resolution referred to in
subparagraph (A) of this paragraph is limited
to not more than 10 hours, to be divided
equally between those favoring and those
opposing the resolution. A motion further to
limit debate is not debatable. An amendment to,
or motion to recommit, the resolution is not in
order. A motion to reconsider the vote by which
the resolution is agreed to or disagreed to is
not in order.
(6) The following shall be decided in the Senate
without debate:
(A) a motion to postpone related to the
discharge from committee.
(B) a motion to postpone consideration of a
resolution.
(C) a motion to proceed to the consideration
of other business.
(D) an appeal from a decision of the chair
related to the application of the rules of the
Senate to the procedures related to a
resolution.
(f) Application.--This section applies to a license issued or
transferred under this chapter for which the Secretary receives
a complete and valid application not later than December 31,
[2016] 2025. This section does not apply to permits.
* * * * * * *
Subtitle VII--ACCESS TO SPACE
* * * * * * *
CHAPTER 701
Sec.
70101. Recovery of fair value of placing Department of Defense payloads
in orbit with [space shuttle] Space Launch System.
70102. [Space shuttle] Space Launch System use policy.
70103. Commercial payloads on [space shuttle] Space Launch System.
Sec. 70101. Recovery of fair value of placing Department of Defense
payloads in orbit with [space shuttle] Space
Launch System
Notwithstanding any other provision of law, or any
interagency agreement, the Administrator shall charge such
prices as are necessary to recover the fair value of placing
Department of Defense payloads into orbit by means of the
[space shuttle] Space Launch System.
Sec. 70102. [Space shuttle] Space Launch System use policy
(a) Use Policy.--
(1) In general.--
(A) Policy.--It shall be the policy of the
United States to use the [space shuttle] Space
Launch System--
(i) for purposes that require a human
presence directly to cis-lunar space
and the regions of space beyond low-
Earth orbit;
(ii) for purposes that require the
unique capabilities of the [space
shuttle] Space Launch System; or
(iii) when other compelling
circumstances exist.
(B) Definition of compelling circumstances.--
In this paragraph, the term ``compelling
circumstances'' includes, but is not limited
to, occasions when the Administrator
determines, in consultation with the Secretary
of Defense and the Secretary of State, that
important national security or foreign policy
interests would be served by [a shuttle launch]
a launch of the Space Launch System.
(2) Using available cargo space for secondary
payloads.--The policy stated in paragraph (1) shall not
preclude the use of available cargo space, on [a space
shuttle mission] a mission of the Space Launch System
otherwise consistent with the policy described in
paragraph (1), for the purpose of carrying secondary
payloads (as defined by the Administrator) that do not
require a human presence if such payloads are
consistent with the requirements of research,
development, demonstration, scientific, commercial, and
educational programs authorized by the Administrator.
(b) Annual Report.--At least annually, the Administrator
shall submit to Congress a report certifying that the payloads
scheduled to be launched on the [space shuttle] Space Launch
System for the next 4 years are consistent with the policy set
forth in subsection (a)(1). For each payload scheduled to be
launched from the [space shuttle] Space Launch System that does
not require a human presence, the Administrator shall, in the
certified report to Congress, state the specific circumstances
that justified the use of the [space shuttle] Space Launch
System. If, during the period between scheduled reports to
Congress, any additions are made to the list of certified
payloads intended to be launched [from the shuttle] from the
Space Launch System, the Administrator shall inform Congress of
the additions and the reasons therefor within 45 days of the
change.
(c) Administration Payloads.--The report described in
subsection (b) shall also include those Administration payloads
designed solely to fly on the [space shuttle] Space Launch
System which have begun the phase C/D of its development cycle.
(d) Definition.--In this section, the term ``Space Launch
System'' means the Space Launch System authorized under section
302 of the National Aeronautics and Space Administration
Authorization Act of 2010.
Sec. 70103. Commercial payloads on [space shuttle] Space Launch System
(a) Definitions.--In this section:
(1) Launch vehicle.--The term ``launch vehicle''
means any vehicle constructed for the purpose of
operating in, or placing a payload in, outer space.
(2) Payload.--The term ``payload'' means an object
which a person undertakes to place in outer space by
means of a launch vehicle, and includes subcomponents
of the launch vehicle specifically designed or adapted
for that object.
(b) In General.--Commercial payloads may not be accepted for
launch as primary payloads on the [space shuttle] Space Launch
System unless the Administrator determines that--
(1) the payload requires the unique capabilities of
the [space shuttle] Space Launch System; or
(2) launching of the payload on the [space shuttle]
Space Launch System is important for either national
security or foreign policy purposes.
* * * * * * *
MINORITY VIEWS
H.R. 2262, as amended, ``Spurring Private Aerospace
Competitiveness and Entrepreneurship Act of 2015,'' proposes to
extend and amend key provisions of the Commercial Space Launch
Amendments Act (CSLAA) of 2004 as included in USC Title 51. The
two time sensitive provisions concern the moratorium on the
Federal Aviation Administration (FAA) proposing any safety
regulations on commercial human space flight, which ends on
September 30, 2015 and the extension of commercial space launch
indemnification, which ends on December 31, 2016.
The Committee has held no hearings during the 114th
Congress on commercial space transportation, or the broader
area of commercial space, or on the legislation that was being
marked up. The members of the Minority are strong supporters of
the commercial space launch industry, but consider holding
hearings and subcommittee markups and important part of the
process. The bill as amended is unbalanced, giving strong
preference to the priorities of the commercial space launch
industry in matters related to the safety of the general public
and the safety of the future customers of this industry.
Sec. 2. Consensus standards
There currently is a prohibition against FAA issuing
regulations to protect the safety of the crew and spaceflight
participants [passengers] on a commercially licensed suborbital
or orbital human spaceflight system. That moratorium, which was
put in place in 2004, was supposed to expire in 2012. It was
extended for an additional three years and is now set to expire
on September 30, 2015. H.R. 2262, as amended, extends the
moratorium for an additional 10 years, until 2025, further
delaying any regulations to protect the safety of the people
who will fly on commercial human spaceflight systems. While it
is argued by some that the commercial human spaceflight
industry is a fledgling industry that needs room to grow
without regulatory burdens, there have been significant
advances made in the development of commercial human
spaceflight systems since 2004. In addition, the head of the
FAA Office of Commercial Space Transportation (AST) has
testified that 50 years of U.S. human spaceflight provides
ample experience on which to base safety regulations and that
continuing a no-regulation learning period for another decade
would unnecessarily delay detailed discussions between industry
and FAA that could form the basis of either safety regulations
or voluntary consensus standards.
A Democratic amendment was offered to extend the learning
period for 5 years--a length consistent with the amount of time
specified in the bipartisan Senate bill that was recently
introduced--half the time period included in H.R. 2262, as
amended.
Sec. 3. International launch competitiveness
The provisions for the commercial space launch
indemnification regime have been extended numerous times since
they were first passed in 1988. Most recently, on January 16,
2014, Congress passed the ``Consolidated Appropriations Act,
2014'' and as part of it, extended the third party liability
and indemnification provisions for an additional three years
[to December 31, 2016]. It was the 8th extension of these
provisions. H.R. 2262, as amended, would provide another
extension, this time until December 31, 2025.
The industry has come a long way in the quarter of a
century since indemnification was first enacted. A Democratic
amendment to H.R. 2262, sought to extend the indemnification
for 4 years, until 2020, to allow for review of a plan to
update the Maximum Probable Loss calculation and an independent
review of the plan before any longer term extension. Four years
is a sensible, pragmatic approach that provides for a report
and a review as well as appropriate Congressional oversight,
following the results of the plan and review. The bipartisan
Senate bill also seeks a 4-year extension.
Sec. 4. Launch license flexibility
This section has been overtaken by events. The provision
was first sought by a single launch company, Virgin Galactic.
However, following the Spaceship Two accident in 2014, which
resulted in the death of a pilot, Virgin Galactic made the
decision to take on all of the testing responsibilities that it
had originally contracted to Scaled Composites. Virgin would
continue development and testing of its vehicles within the
Virgin Galactic company. This decision eliminated the problem
that prompted the proposed language included in this Section.
Officials from the FAA's Office of Commercial Space
Transportation told Democratic staff that a commercial launch
license enables a launch provider to carry out testing and
improvements to a vehicle, providing that the licensee has
specified such activities in obtaining the license. Once Virgin
Galactic obtains a license, it can continue to carry out
testing and make safety improvements to a vehicle, providing
those activities are included as part of its license. There is
thus no compelling need for this Section. The expectation that
companies other than Virgin Galactic may need such flexibility
does not have merit. No other companies have come forth seeking
this language be enacted into law.
Sec. 5. Government astronauts
The inclusion of this clause has potential consequences
beyond this bill as the term ``Astronaut'' has never been
clearly defined in a statute up to this point, and thus the
final language selected may have far reaching implications. The
Majority's addition of ``Government Astronaut'' as a new
category is in response to a request by the National
Aeronautics and Space Administration (NASA) for this addition
to existing statutes. NASA has explained that neither of the
two current definitions in the CSLA, ``Space Flight
Participants'' and ``Crew,'' effectively covered NASA
astronauts. This is because, at the time the CSLA was drafted,
no one envisioned a future where NASA would fly astronauts
using commercial crew transportation services.
However, both NASA's and the Majority's proposed
definitions leave out some cases that are important to address.
For example, both proposals define a ``Government Astronaut''
as either a U.S. government employee or as the employee of a
foreign government. However, both proposals limit a foreign
astronaut to only those foreign astronauts who come from
signatories to the Intergovernmental Agreement (IGA) relating
to operations on the International Space Station (ISS).
Commercial space operations are likely to have missions other
than directly related to the ISS, and as such, the definition
of foreign astronauts should not be limited by that agreement.
In addition, neither NASA's language nor the Majority's takes
into account the fact that there might be U.S. government
employees who have not been trained as astronauts but who will
still need to fly on a commercial space vehicle as part of
their employment activities, e.g., as government researchers.
Both situations raise cross-waiver and indemnification issues.
Sec. 6. Indemnification for spaceflight participants
This section proposes to include spaceflight participants
in the third party liability risk-sharing regime established by
Congress in the Commercial Space Launch Act Amendments of 1988.
That regime insured that the government would indemnify any
participants whose liability went above their insurance
coverage. The proposal to include spaceflight participants in
this regime is based on the notion that any accident involving
third-party claims will result in claims being made on
spaceflight participants who are not covered in the launch
party's third-party insurance. The argument is also that
spaceflight participants be put on the same playing field as
contractors and subcontractors who are included in the
indemnification regime. However, this policy change has not
been examined at any Committee hearings, and thus there are a
number of unresolved questions relative to this policy change.
First, spaceflight participants were explicitly excluded from
the liability regime in the 2004 updates to the Commercial
Space Launch Act, because of the appearance of indemnifying
wealthy individuals who would be seeking to become space
tourists flying on commercial human spaceflight systems. In
addition, the question of whether the U.S. Government should
indemnify spaceflight participants for third-party claims
should be considered in the context of other high-risk
adventure activities such as skydiving. If an individual who
understands the risks chooses to take a commercial space
flight, and is able to purchase insurance coverage or have it
provided by the launch provider, the American taxpayer should
not be responsible for indemnifying that individual.
The proposal to include spaceflight participnts in the
third party liability regime deserves further study and
investigation and is premature to include in this update of the
CSLA.
Sec. 7. Federal jurisdiction
This provision provides that any legal ``action or tort
arising from a licensed launch shall be the sole jurisdiction
of the federal courts and shall be decided under federal law.''
This provision removes all legal actions arising out of
federally licensed launches from state courts to the federal
courts. Second, the provision preempts the application of state
law and requires that the actions be decided under federal law.
This provision is unconscionable as there is no Federal civil
tort law that would apply to commercial space launch providers.
To quote from a letter by American Association for Justice
dated May 12, 2015, to Chairman Smith and Ranking Member
Johnson:
``AAJ recognizes the challenges of trying to give a
new industry the flexibility to grow and innovate
without unnecessary burdens. However, language included
in the bill will provide companies involved in
commercial space travel immunity for torts arising from
a licensed commercial space launch or reentry. More
specifically, Section 7 of the bill states: ``Any
action or tort arising from a licensed launch or
reentry shall be the sole jurisdiction of the Federal
courts and shall be decided under federal law.'' Since
there is no federal tort law applicable to private
companies, there is no remedy available to anyone
injured or any property damage incurred as a result of
a negligent launch or reentry. Essentially, Section 7
provides immunity for recklessness and intentional
misconduct. Notably, this immunity could stretch to
foreign companies involved in commercial space travel
at the expense of United States citizens, businesses
and government.
* * *
As the commercial space travel indutry grows, safety
should be put first and foremost. But, providing no
recourse for grossly negligent, reckless or even
intentional misconduct leading to personal injury or
death is irresponsible and wrong. Simply put, industry
interests should not be valued over the safety of the
American public. As written, the SPACE Act of 2015
gives reckless and bad actors complete immunity, while
innocent participants and bystanders are left without
recourse, regardless of the circumstance.''
A Democratic amendment sought to address these concerns, by
striking this section of the amended bill, but it was not
adopted.
Sec. 8. Cross-waivers of liability
The argument for including this provision is that since
spaceflight participants know that spaceflight is risky and
agree to sign informed consent, then they should also agree to
waive claims against the launch provider and related parties to
the launch. Furthermore, stakeholders assert that the informed
consent does not relieve a launch provider from claims and thus
cross-waivers are required to ensure they remain immune from
suit. However, inclusion of this provision is another way in
which this unbalanced bill is skewed against individuals. To
quote from the American Association for Justice letter dated
May 12, 2015, that was sent to Chairman Smith and Ranking
Member Johnson:
In addition to providing broad liability protections,
Section 8 of the SPACE Act of 2015 also requires
passengers on commercial spacecraft to waive any right
to damages for personal injury, property damage or
death resulting from commercial air travel. While it
may be acceptable for businesses with equal footing and
negotiating power to execute cross waivers limiting
their responsibility to each other, this waiver
language should not extend to passengers. This
provision is unfair and harmful to individuals.
Sec. 10. State commercial launch facilities
States, municipalities, and commercial entities have and
continue to participate in commercial space transportation, in
particular, through ownership or investment in commercial
spaceports and related launch facilities. Such commercial
launch facilities can support the growth of the commercial
space transportation industry and support U.S. Government
launch activities.
Some commercial launch facilities involve considerable
State investment. However, there are liability and
indemnification issues that warrant further attention before
making policy in this area.
Eddie Bernice Johnson.
[all]
