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                                                       Calendar No. 393
105th Congress                                                   Report
                                SENATE

 2d Session                                                     105-198
_______________________________________________________________________


 
                     COMMERCIAL SPACE ACT OF 1997

                               __________

                              R E P O R T

                                 of the

                  COMMITTEE ON COMMERCE, SCIENCE, AND

                             TRANSPORTATION

                                   on

                               H.R. 1702





                  June 2, 1998.--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred fifth congress
                             second session

                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             WENDELL H. FORD, Kentucky
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA SNOWE, Maine                 JOHN F. KERRY, Massachusetts
JOHN ASHCROFT, Missouri              JOHN B. BREAUX, Louisiana
BILL FRIST, Tennessee                RICHARD H. BRYAN, Nevada
SPENCER ABRAHAM, Michigan            BYRON L. DORGAN, North Dakota
SAM BROWNBACK, Kansas                RON WYDEN, Oregon
                       John Raidt, Staff Director
                       Mark Buse, Policy Director
     Ivan A. Schlager, Democratic Chief Counsel and Staff Director
             James S. W. Drewry, Democratic General Counsel


                                                       Calendar No. 393
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-198
_______________________________________________________________________


                      COMMERCIAL SPACE ACT OF 1997

                                _______
                                

                  June 2, 1998.--Ordered to be printed

_______________________________________________________________________


       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                        [To accompany H.R. 1702]

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

                          purpose of the bill

    H.R. 1702, as reported, would encourage the development of 
a commercial space industry in the United States by 
streamlining government regulatory procedures, by updating 
existing legislation to reflect recent technological 
developments, and by authorizing appropriations to the 
Department of Transportation (DOT) for the activities of the 
Federal Aviation Administration's Office of the Associate 
Administrator for Commercial Space Transportation totaling 
$6,182,000 for fiscal year (FY) 1998, $6,275,000 for FY 1999, 
and $6,600,000 for FY 2000.

                          background and needs

    The Department of Commerce has estimated that revenue from 
commercial space activity in the United States totaled 
approximately $7.5 billion in 1995. For more than a decade, 
commercial space businesses have grown faster than the economy 
and proven relatively recession-proof. This success comes 
despite the fact that commercial space ventures are 
particularly capital-intensive and often involve more risk than 
more traditional terrestrial businesses.
    Congress has passed three laws intended to assist the 
commercial space launch services industry: the 1984 Commercial 
Space Launch Act (CSLA), the 1988 Commercial Space Launch Act 
Amendments, and the 1990 Launch Services Purchase Act. Congress 
also passed the Land Remote Sensing Policy Act of 1992, a law 
which enables the private sector to design, build, launch, and 
operate commercial remote sensing satellites. Congress 
continues to be interested in these issues, although no new 
laws, or significant amendments, have been passed since 1992.
    During the course of its first term, the Clinton 
Administration published a range of policy statements that 
continued the work of Presidents Reagan and Bush in 
establishing a stable business environment from which the 
commercial sector could create new space businesses and jobs. 
Those policy statements addressed such issues as space 
transportation, commercial remote sensing, and the Global 
Positioning System. Additionally, the President issued a new 
National Space Policy Statement on September 19, 1996 which 
reinforced the government's support of commercial space 
developments, noting that, ``expanding U.S. commercial space 
activities will generate economic benefits for the Nation and 
provide the U.S. Government with an increasing range of space 
goods and services.'' The new policy statement also declared 
that support of commercial space activity would be undertaken 
without federal subsidies. The policy supports the position 
that the government's role is to create a stable and 
predictable environment in which the entrepreneurial spirit of 
American enterprise can succeed. It also states, ``Commercial 
space sector activities shall be supervised or regulated only 
to the extent required by law, national security, international 
obligation and public safety.''
    Since the passage of legislation in 1988, 1990 and 1992 and 
the announcement of policies intended to create a stable 
business environment for the commercial development of space, 
both the government and the commercial sector have identified 
areas for improvement.
    Based on those discussions, H.R. 1702, the Commercial Space 
Act of 1997, would improve the legal and regulatory framework 
for commercial space development. Specifically, H.R. 1702 
would: (1) codify the best aspects of existing space policy so 
that the merits of the policy are established in a more stable 
framework; (2) incorporate lessons learned from past efforts to 
create a more effective policy for the promotion of commercial 
space activity; and (3) require a more streamlined and 
proactive legal and regulatory environment for commercial space 
ventures involved in the production and dissemination of 
information so that the United States will continue to lead the 
world into the information age.
    The bill is necessary because commercial activity in space 
is still at a very early stage of development. Its progress is 
measured in the work of relatively small, entrepreneurial 
companies. Like any young industry, the commercial space 
industry is vulnerable to the sudden changes of government 
policy. H.R. 1702 is necessary to ensure consistency in 
government policy so that commercial space businesses can grow 
with the relatively reliable assurance that government policy 
will not change.

                      summary of major provisions

    The major provisions of the bill, as reported, would: (1) 
require a report by the National Aeronautics and Space 
Administration's (NASA) Administrator and an independent market 
study to be submitted to Congress identifying commercial 
opportunities and evaluating industry interest in playing a 
role in International Space Station (ISS) activities including 
operation, use, servicing, or augmentation; (2) establish 
authority for the Office of the Associate Administrator for 
Commercial Space Transportation, DOT, to license commercial 
reentry activities; (3) authorize appropriations for the Office 
of Associate Administrator for Commercial Space for FY 1998, FY 
1999, and FY 2000; (4) reaffirm U.S. policy to make the U.S. 
Global Positioning System (GPS) the world standard and to 
continue its operation on a continuous worldwide basis without 
direct user fees; (5) authorize purchase of space science data 
when feasible by commercial providers instead of building 
complete systems to generate the data; (6) provide for the 
management of the Commercial Space Centers as a coordinated 
program out of NASA headquarters in Washington, DC; (7) require 
the Secretary of Commerce to publish a list of requirements for 
applicants seeking a license to own and operate a remote 
sensing satellite; (8) authorize the purchase of Earth remote 
sensing data from commercial providers by NASA, when feasible; 
(9) require the Federal government to procure space 
transportation services from U.S. commercial providers; (10) 
authorize a NASA plan for the potential privatization of the 
Space Shuttle program, including a requirement for the NASA 
Administrator to conduct a feasibility study; (11) codify 
Administration policy on the conversion of excess ballistic 
missiles; and (12) require the Secretary of Defense to prepare 
a national capability study of space infrastructure needs, both 
defense and civilian, through December 31, 2007.

                          legislative history

    H.R. 1702, the Commercial Space Act, was introduced in the 
House of Representatives on May 22, 1997, and passed the House 
November 4, 1997. A Statement of Administration Policy was sent 
to the House of Representatives on November 4, 1997, but many 
of the proposed Administration changes were not included.
    H.R. 1702 was referred to the Commerce, Science, and 
Transportation Committee of the U.S. Senate on November 5, 
1997. A bill, S. 1473, Commercial Space Act of 1997, was 
introduced by Senator Bob Graham on November 8, 1997. This 
bill, which is similar to H.R. 1702, would establish 
requirements for the use of excess intercontinental ballistic 
missiles as space launch vehicles. However, the bill does not 
amend the Land Remote Sensing Policy Act of 1992.
    Two hearings have been held relating to commercial space 
activities. The first hearing was held on June 25, 1997 on the 
programs and budget of DOT's Office of Commercial Space 
Transportation. Ms. Patricia Grace Smith, Acting Administrator 
for the Office of Commercial Space Transportation, Federal 
Aviation Administration, DOT, and Mr. Keith Calhoun-Senghor, 
Director of the Office of Air and Space Commercialization, 
Department of Commerce, testified. On Thursday, March 5, 1998, 
the Subcommittee on Science, Technology and Space held a second 
hearing on the commercialization of Space. Three panels 
testified and those witnesses included: Panel I: Senator Wayne 
Allard, R-CO; and Senator Bob Graham, D-FL; Panel II: Mr. John 
Barker, Deputy Assistant Secretary, Bureau of Political-
Military Affairs, Department of State; Mr. Keith Calhoun-
Senghor, Director, Office of Air and Space Commercialization, 
Department of Commerce; Mr. Edward A. Frankle, General Counsel, 
NASA; Mr. Gil Klinger, Acting Deputy Under Secretary for Space, 
Department of Defense; and Panel III: Mr. John Copple, Chief 
Executive Officer, Space Imaging, Thornton, Colorado; Mr. 
Michael S. Kelly, President and Chief Executive Officer, Kelly 
Space and Technology, San Bernardino, California; Mr. Robert 
Meuser, Vice-President and General Counsel for Regulatory 
Affairs, Kistler Aerospace, Kirkland, Washington; and Mr. 
Michael Swiek, Executive Director, U.S. Global Positioning 
System Industry Council, Washington, DC. Ms. Patricia Grace 
Smith, Acting Associate Administrator for the Office of 
Commercial Space Transportation, Federal Aviation 
Administration, DOT submitted written testimony for the record. 
The hearing focused on existing policies and laws governing the 
commercialization of space, the importance to the Nation of the 
industries these policies support, and the impact on future 
jobs, new technologies, and economic growth for the Nation.
    On March 12, 1998, the Committee met in open executive 
session and, on a voice vote, ordered the bill, as amended, 
reported.

                            estimated costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 1, 1998.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1702, the 
Commercial Space Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kathleen 
Gramp (for federal costs), Pepper Santalucia (for the state and 
local impact), and Lesley Frymier (for the private-sector 
impact.)
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 1702--The Commercial Space Act of 1997

    Summary: H.R. 1702 would revise federal policies related to 
the procurement and licensing of services and products provided 
by the commercial space industry, and would authorize 
appropriations for the Office of Commercial Space 
Transportation (OCST, within the Department of Transportation) 
for fiscal years 1998 through 2000. The act would define space 
transportation services, remote sensing data, and space science 
data as ``commercial items'' for the purposes of procurement 
policies, and would require federal agencies to acquire these 
services from the private sector, subject to certain 
conditions. OCST would be given the authority to license space 
transportation systems that involve reentry vehicles, sites, 
and operations, and the National Oceanic and Atmosphere 
Administration (NOAA, within the Department of Commerce) would 
be required to change the process and conditions used to award 
licenses for remote sensing systems. The act also would require 
the National Aeronautics and Space Administration (NASA) and 
the Department of Defense (DoD) to conduct studies and comply 
with various procedural requirements.
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing H.R. 1702 would result in increased 
discretionary spending of about $14 million over the 1998-2003 
period. Because H.R. 1702 could affect direct spending and 
receipts, pay-as-you-go procedures would apply. CBO estimates, 
that any such effects would be negligible.
    The act contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act of 1995 (UMRA), and would 
impose no costs on state, local, or tribal governments. The act 
would impose new private-sector mandates, but CBO estimates 
that the cost of these mandates would not exceed the statutory 
threshold established by UMRA.

Estimated cost to the Federal Government

    CBO estimates that implementing H.R. 1702 would increase 
discretionary spending by about $14 million over the 1999-2003 
period, assuming appropriation of the necessary amounts. For 
the purposes of this estimate, we assume that the 
appropriations will be provided near the beginning of each 
fiscal year and that outlays will follow the historical pattern 
for such activities. Enacting H.R. 1702 could affect both 
direct spending and receipts (revenues), but CBO estimates that 
the effects would not be significant. The costs of this 
legislation fall primarily within budget function 400 
(transportation).

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1998     1999     2000     2001     2002     2003 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Spending under current law:                                                                                     
    Budget authority \1\..................................        6        0        0        0        0        0
    Estimated outlays.....................................        6        1        0        0        0        0
Proposed changes:                                                                                               
    Estimated authorization level.........................        0        7        7        0        0        0
    Estimated outlays.....................................        0        6        7        1        0        0
Spending under H.R. 1702:                                                                                       
    Estimated authorization level \1\.....................        6        7        7        0        0        0
    Estimated outlays.....................................        6        7        7        1        0        0
----------------------------------------------------------------------------------------------------------------
\1\ The 1998 level is the amount appropriated for that year; it is equal to the amount that H.R. 1702 would     
  authorize for 1998.                                                                                           

            Spending subject to appropriation
    The estimated discretionary spending reflects both the 
amounts authorized for OCST (about $6 million for 1999 and 
about $7 million for 2000) and the cost of the studies and 
reports that NASA and DoD would have to prepare (estimated to 
total $1 million in 1999). Defining space transportation 
services, remote sensing data, and space science data as 
``commercial items'' could increase the time and effort 
involved in evaluating contracts because that designation would 
make it harder to obtain certain kinds of information from 
vendors on product specifications. CBO estimates, however, that 
this designation is unlikely to have a significant effect on 
costs in any year.
    CBO estimates that directing NASA to purchase space science 
and Earth system data from commercial providers would not 
significantly affect federal spending in the near term. 
Assuming that NASA would purchase commercial data only if the 
terms of the acquisition would be cost-effective 
governmentwide, these provisions should not increase costs to 
the government. At the same time, very few commercial ventures 
now provide the kinds of data used by federal agencies, so 
there is little likelihood of significant near-term savings for 
the government from adopting the new policy.
    Similarly, we estimate that little budgetary impact would 
result in the next five years from provisions requiring DoD and 
NASA to acquire space transportation systems from commercial 
providers. DoD's costs would change little in the near term, 
because the act exempts existing contracts and because DoD 
plans to increase its use of commercial services under current 
law. Likewise, most of NASA's missions already use commercial 
launch services, so the provisions are unlikely to affect the 
agency's spending. Provisions requiring DoD and NASA to justify 
their use of noncommercial services would not have a 
significant effect on their workload, assuming the agencies are 
able to prepare blanket determinations for classes of systems 
rather than for individual launches.
    Finally, H.R. 1702 would strengthen the government's 
obligation to reimburse licensees of remote sensing systems for 
the cost of technical modifications needed to comply with 
conditions that DoD or the State Department impose on these 
licensees for purpose of national security. Because CBO expects 
these agencies to reimburse licensees for all appropriate costs 
under current law, we estimate that requiring such payments 
would not significantly change the amounts that would be paid. 
Other provisions would have little or no effect on 
discretionary spending.
            Direct spending
    Increasing the government's use of commercial launch 
services would increase the use of federal launch property or 
services by the private sector. Under current law, nonfederal 
entities reimburse DoD and NASA for using such facilities, and 
agencies spend the proceeds to cover the costs incurred. 
Because any increase in collections resulting from additional 
commercial activity would be offset by new direct spending the 
net effect of the act on direct spending would be negligible.
            Receipts (Revenues)
    H.R. 1702 would allow OCST to impose civil penalties for 
violations of licensing agreements for reentry systems, which 
could affect revenues. CBO estimates that any additional 
receipts from civil penalties associated with the OCST 
licensing activities authorized by this bill would be 
insignificant. To date, OCST has never collected a penalty for 
a violation of the licensing and related requirements of the 
commercial space transportation program.
    Pay-as-you-go considerations: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 sets up pay-
as-you-go procedures for legislation affecting direct spending 
or receipts. Enacting H.R. 1702 could affect both direct 
spending and receipts because of provisions involving 
collections for the use of federal launch services and civil 
penalties for failure to comply with space transportation 
regulations. CBO estimates, however, that these provisions 
would have little or no budgetary impact.
    Estimated impact on State, local, and tribal governments: 
H.R. 1702 contains no intergovernmental mandates as defined in 
UMRA, and would impose no costs on state, local or tribal 
governments. The legislation would broaden the scope of the 
Department of Transportation's commercial space transportation 
program to include in space transportation and reentry 
activities, rather than just launch activities. One of the 
purposes of this program is to facilitate the participation of 
state governments in the provision of space transportation 
infrastructure, such as launch sites. The Secretary of 
Transportation is currently required to make excess launch 
property available to state governments. By broadening the 
scope of the program, H.R. 1702 would enable states to receive 
additional assistance if they choose to participate.
    Estimated impact on the private sector: Section 102 would 
require operators to reentry sites to obtain a license from the 
OCST for reentry sites, vehicles, and services. CBO estimates 
that the direct costs of this private-sector mandate would not 
exceed, in any one year, the statutory threshold established in 
UMRA ($100 million in 1996, adjusted annually for inflation).
    Previous CBO estimate: On June 24, 1997, CBO transmitted a 
cost estimate for H.R. 1702, as ordered reported by the House 
Committee on Science on June 18, 1997. Differences between the 
estimates are attributable to differences in the two versions 
of the legislation. CBO's estimate of total discretionary 
spending under H.R. 1702 as approved by the Senate Committee on 
Commerce, Science, and Transportation is higher than estimated 
for the House version largely because the Senate version 
includes authorizations of annual appropriations for OCST while 
the House version does not.
    Estimate prepared by: Federal Costs: Kathleen Gramp; Impact 
on State, Local, and Tribal Governments: Pepper Santalucia; 
Impact on the Private Sector: Lesley Frymier.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      regulatory impact statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of regulatory impact of the legislation, 
as reported.

Number of persons covered

    H.R. 1702, as reported, amends the CSLA (49 U.S.C. 70101 et 
seq.; P.L. 98-575), the Land Remote Sensing Policy Act of 1992 
(15 U.S.C. 5601 et seq.; P.L. 102-555), and the Launch Services 
Purchase Act of 1990 (42 U.S.C. 2465b et seq.). The amendments 
to the CSLA require the Secretary of Transportation to issue 
regulations to carry out the requirements of the CSLA, 
including guidelines for industry and State governments to 
obtain sufficient insurance coverage for potential damages to 
third parties and procedures for requesting and obtaining: (1) 
licenses to launch a commercial launch vehicle; (2) operator 
licenses for launch; (3) launch site operator licenses; and (4) 
the application of government indemnification.

Economic impact

    This legislation will not have an adverse economic impact 
on the Nation. It provides sufficient authorization levels to 
sustain ongoing and new activities for the Office of the 
Associate Administrator for Commercial Space Transportation. It 
is expected that the new licensing authority given to the 
Office of the Associate Administrator for Commercial Space 
Transportation will generate new business opportunities for 
those in the commercial space industry.

Privacy

    This legislation will not have an adverse impact on the 
personal privacy of individuals.

Paperwork

    This legislation requires the Administrator of NASA to 
provide the following: (1) a study, within 90 days of 
enactment, that identifies and examines the opportunities for 
commercial providers to play a role in ISS activities, 
including operation, use, servicing, and augmentation; (2) an 
independently-conducted market study, within 180 days of 
enactment, that examines and evaluates potential industry 
interest in providing commercial goods and services for the 
operation, servicing, and augmentation of the ISS; (3) a report 
detailing how many proposals NASA received during 1998 
regarding commercial operation, servicing, utilization, or 
augmentation of the ISS which would be submitted with the FY 
2000 budget request; and (4) a feasibility study, within 60 
days of enactment, for the privatization of the Space Shuttle.
    The Secretary of Transportation must submit an annual 
report to Congress, accompanying the annual budget request, 
that describes all activities undertaken under the amendments 
to CSLA, including a description of the process by which the 
industry may apply and DOT may approve licenses under CSLA and 
recommendations for legislation that may further commercial 
launches and reentries.
    The Secretary of Commerce, within 180 days after enactment, 
shall publish in the Federal Register a complete and specific 
list of all information required to comprise applications for 
license under the Land Remote Sensing Policy Act.
    The Secretary of Defense, within 180 days after enactment, 
shall submit a report to Congress on the national 
infrastructure capabilities and needs for both the defense and 
civilian launch sectors through December 31, 2007.

                      section-by-section analysis

            Section 1. Short title and table of contents
    This section states the bill's short title as the 
``Commercial Space Act of 1997.'' A Table of Contents is 
provided.
            Section 2. Definitions
    This section provides definitions for terms used in H.R. 
1702, including those for ``Administrator''; ``commercial 
provider''; ``pay-load''; ``space-related activities''; ``space 
transportation services''; ``space transportation vehicle''; 
``State''; and ``United States commercial provider''.

Title I--Promotion of Commercial Space Opportunities

            Section 101. Commercialization of space station
    This section would address issues relating to the 
commercialization of the ISS. Subsection (a) would state that 
it is Congressional policy that the economic development of 
Earth orbital space is a priority of the ISS, and that the 
fullest engagement of commercial providers and commercial users 
will reduce the operational costs of the ISS. Subsection (b) 
would require a report from NASA, within 90 days after 
enactment, that identifies and examines the opportunities for 
commercial providers to play a role in ISS activities; the 
potential cost savings from using commercial providers; which 
opportunities the NASA Administrator plans to make available to 
commercial providers; the policies that the NASA Administrator 
is advancing to encourage commercial opportunities; and the 
revenues and cost reimbursements to the Federal government from 
commercial users of the ISS. The section would further require 
the Administrator to submit an independent market study to 
Congress 180 days after enactment. This study would examine and 
evaluate potential industry interest in providing commercial 
goods and services for the operation, servicing, and 
augmentation of the ISS. Finally, subsection (b) would require 
the Administrator to report to Congress the number of proposals 
NASA received in 1998 regarding commercial operation, 
servicing, utilization, or augmentation of the ISS, and the 
number of proposals that resulted in agreements. The subsection 
further requires the Administrator to consider the role of 
State governments as brokers in promoting space station 
commercialization in all three reports.
            Section 102. Commercial space launch amendments
    This section would amend chapter 701 of title 49, United 
States Code, entitled ``Commercial Space Launch Activities,'' 
to: (1) establish a statutory framework for the licensing of 
commercial reentry activities by the Secretary of 
Transportation; (2) clarify certain provisions in Chapter 701; 
(3) provide for criteria for accepting a license application; 
and (4) authorize appropriations for Federal Aviation 
Administration's Office of the Associate Administrator for 
Commercial Space Transportation.
    Specific changes are included in these amendments to 
address the industry's movement towards reentry vehicles. For 
example, paragraph (3) of subsection (a) would amend the CSLA 
to expand the definition of ``launch services'' to those 
activities directly related to the preparation of a launch site 
or payload facility. Paragraph (6) of subsection (a) would 
require the Secretary of Transportation to notify the Senate 
Committee on Commerce, Science, and Transportation and the 
House Science Committee within 30 days when a license has not 
been issued within the deadline. This paragraph would also 
authorize the Secretary to establish procedures for safety 
approvals of launch vehicles, reentry vehicles, safety systems, 
processes, services, or personnel that may be used in 
conducting licensed commercial space launch or reentry 
activities, as well as to develop regulations establishing 
criteria for accepting an application for a license within the 
60 days after receipt of such application.
    Paragraph (16) of subsection (a) would add a new section to 
the CSLA to require the Secretary of Transportation within 9 
months of enactment of this bill, to issue regulations that 
include: (1) guidelines for industry and State governments to 
obtain sufficient insurance coverage for potential damages to 
third parties; (2) procedures for requesting and obtaining 
licenses to launch a commercial launch vehicle; (3) procedures 
for requesting and obtaining operation licenses for launch; (4) 
procedures for requesting and obtaining launch site operator 
licenses; and (5) procedures for the application of government 
indemnification.
    Paragraph (16) also would require the Secretary of 
Transportation within 6 months of enactment of the bill to 
issue a notice of proposed rulemaking that includes: (1) 
procedures for requesting and obtaining licenses to reenter a 
vehicle; (2) procedures for requesting and obtaining operator 
licenses for reentry; and (3) procedures for requesting and 
obtaining reentry site operator licenses.
    Finally, paragraph (16) would require the Secretary of 
Transportation to submit an annual report to Congress, 
accompanying the annual budget request, describing all 
activities undertaken under the amendments to the CSLA, 
including a description of the process by which the industry 
may apply and DOT may approve licenses under CSLA and 
recommendations for legislation that may further commercial 
launches and reentries.
    Subsection (b) of this section would authorize 
appropriations to the Office of the Associate Administrator for 
Commercial Space Transportation at DOT at a level of $6,182,000 
for FY 1998, $6,275,000 for FY 1999, and $6,600,000 for FY 
2000.
            Section 103. Promotion of United States global positioning 
                    system standards
    Section 103 of this bill, as reported, would address issues 
relating to the U.S. GPS. Subsection (a) contains Congressional 
findings that the GPS has become an essential system for the 
civilian, scientific, and military community because of the 
role of the commercial industry in providing equipment and 
services. Subsection (b) states that the Congress encourages 
the President to: (1) ensure the operation of the GPS on a 
continuous worldwide basis without direct user fees; (2) enter 
into agreements that promote cooperation with foreign 
governments in order to establish GPS and its augmentations as 
the acceptable international standard; and (3) provide clear 
direction and adequate resources to U.S. representatives to 
ensure efficient management of the electromagnetic spectrum 
used by the GPS and to protect that spectrum from disruption 
and interference.
            Section 104. Acquisition of space science data
    This section would require NASA to purchase space science 
data from commercial providers. Subsection (a) would require 
that purchaseof such data to the maximum extent possible and 
cost effective, as long as the purchase would satisfy the scientific 
requirements of NASA and where practicable of other federal agencies 
and scientific researchers. Subsection (b) would require the 
acquisitions of space science data to be carried out in accordance with 
applicable acquisition laws and regulations. Further, space science 
data would be required to be treated as a commercial item under 
applicable acquisition laws. However, this subsection would not 
preclude the United States from acquiring sufficient rights in data to 
meet the needs of the scientific and educational community. Subsection 
(c) would define ``space science data'' for the purpose of this 
section. Subsection (d) would ensure that the federal government would 
require compliance with all applicable safety standards. Subsection (e) 
would specify that this section does not authorize NASA to provide 
financial assistance for the development of commercial systems for the 
collection of space science data.
            Section 105. Administration of commercial space centers
    This section would require the Administrator to administer 
the Commercial Space Center (CSS) program in a unified 
coordinated manner from NASA headquarters in Washington, DC. 
Administering the Centers as a single entity will eliminate 
confusion and facilitate communication and synergism.

Title II--Remote Sensing

            Section 201. Land Remote Sensing Policy Act of 1992 
                    amendments
    This section would update the provisions of the Land Remote 
Sensing Policy Act of 1992. Subsection (a) sets forth several 
Congressional findings stipulating that the national security 
concerns and international obligations of the United States 
must be protected as the commercial remote sensing industry 
emerges and that the U.S. government must support industrial 
growth and competitiveness. Subsection (b) would amend the Land 
Remote Sensing Policy Act with the following provisions: (1) 
The Secretary of Commerce would be required to publish a list 
of requirements for applicant's seeking a license to own and 
operate a remote sensing satellite; (2) the Secretary of 
Commerce would be prohibited from seeking to enjoin a licensee 
from entering into a foreign agreement unless the Secretary 
first transmits a determination to the licensee that such 
participation is inconsistent with national security or 
international obligations; (3) the Secretary of Commerce would 
be authorized to modify a license and/or terminate operations 
of commercial remote sensing activities, thereby giving the 
Secretary the flexibility to pursue either option or both 
options at the same time; (4) the Secretary of Commerce would 
be required to notify Congress of any action to limit 
collection or distribution of data; (5) the Secretary would be 
required to notify Congress of any injunctions that the 
Department seeks against a commercial provider; (6) the Federal 
government would be prohibited from duplicating commercial 
provider activities unless significant savings could be 
realized or such duplication is necessary for reasons of 
national security or international obligations; (7) the 
Secretary of Commerce would be required to consult with the 
Secretaries of Defense and State on all matters affecting 
national security, and the Secretaries of Defense and State 
would be responsible for making determinations on whether such 
applications are consistent with U.S. national security 
interests and international obligations; (8) appropriate 
agencies would be encouraged to consider providing resources 
for use of commercial remote sensing services and products to 
developing nations as a component of U.S. international aid 
programs; and (9) NASA, the United States Geological Service, 
and the National Oceanic and Atmospheric Administration would 
be authorized to develop and implement a similar program to aid 
the transfer of remote sensing technology to states.
            Section 202. Acquisition of earth science data
    This section would require NASA to purchase Earth remote 
sensing data from commercial providers. Subsection (a) would 
require the Administrator of NASA to purchase for commercial 
providers to the maximum extent possible and where cost 
effective, as long as the purchase would satisfy scientific 
requirements of NASA and where appropriate of other federal 
agencies and scientific researchers. Subsection (b) would 
require the acquisitions to be carried out in accordance with 
applicable acquisition laws and regulations. Further, this 
subsection would require that such Earth remote sensing data be 
treated as a commercial item under applicable acquisition laws. 
However, this subsection would not preclude the federal 
government from acquiring sufficient rights in data to meet the 
needs of the scientific and educational community. Subsection 
(c) would ensure that the federal government would require 
compliance with all applicable safety standards. Subsection (d) 
would require the acquisition of Earth science data to be 
carried out through the Stennis Space Center.

Title III--Federal Acquisitions of Space Transportation Services

            Section 301. Requirement to procure commercial space 
                    transportation services
    This section would require the Federal government to 
procure space transportation services from U.S. commercial 
providers, and to the maximum practicable extent, plan missions 
to accommodate the space transportation capabilities of U.S. 
commercial providers. Subsection (b) of this section would 
provide the following exceptions to the policy: (1) when a 
payload would require the unique capabilities of the Space 
Shuttle; (2) when U.S. commercial providers cannot provide 
cost-effective space transportation services when required; (3) 
when the use of space transportation services from U.S. 
commercial providers poses an unacceptable risk of loss of a 
unique scientific opportunity; (4) when the use of space 
transportation services from U.S. commercial providers is 
inconsistent with U.S. national security objectives; (5) when 
the use of space transportation services from U.S. commercial 
providers is inconsistent with foreign policy purposes, or 
launch of the payload by a foreign entity serves foreign policy 
purposes; (6) when it is more cost-effective to launch a 
payload in conjunction with the test or demonstration of a 
space transportation vehicle owned by the Federal government; 
or (7) when a playload can make use of the available cargo 
space on a Space Shuttle mission as a secondary payload, and 
such payload is consistent with specific requirements 
authorized by theAdministrator. This subsection would authorize 
only the Secretary of the Air Force (in the case of a national security 
issue) or the NASA Administrator to make a determination about when an 
exception would be granted. Subsection (c) would prohibit the 
requirements of subsection (a) from applying to space transportation 
services and vehicles acquired or owned by the Federal government 
before the enactment date or to contracts for such acquisition or 
ownership that have been entered into prior to the enactment date. 
Finally, subsection (d) would ensure that the provisions of this 
section would not prevent the Federal government from acquiring, 
owning, or maintaining space transportation vehicles that are for 
historical purposes.
            Section 302. Acquisition of commercial space transportation 
                    services
    The section would require space transportation services to 
be considered a ``commercial item'' for the purposes of 
acquisition laws and regulations. In addition, this section 
ensures that the Federal government would require compliance 
with applicable safety standards.
            Section 303. Launch Services Purchase Act of 1990 
                    amendments
    Section 303 updates the Launch Service Purchase Act of 
1990.
            Section 304. Shuttle privatization
    This section would require the NASA Administrator to plan 
for potential privatization of the Space Shuttle program while 
maintaining safety and cost effectiveness as high priorities.
    Subsection (a) would direct the Administrator to prepare 
for a transition from the Federal operation to the Federal 
purchase of commercial services for non-emergency launch 
requirements. In making those preparations, the Administrator 
would be required to plan for the potential privatization of 
the Space Shuttle program. Subsection (b) would require the 
NASA Administrator to conduct a feasibility study of Shuttle 
privatization addressing numerous issues including: (1) who 
should own the Shuttle orbiters and ground facilities; (2) 
whether the Federal government should indemnify the contractor 
for any third party liability and if so, under what terms and 
conditions; (3) whether non-NASA payloads should be launched on 
the Shuttle and whether any classes of payload should be 
ineligible; (4) whether commercial payloads should be launched 
on the Shuttle; (5) whether federal government payloads should 
have priority over non-federal payloads in Shuttle launch 
assignments; (6) whether public interest requires certain 
Shuttle functions to continue to be performed by the federal 
government; and (7) how much cost savings, if any, will be 
generated by privatization. Subsection (c) would require NASA 
to submit a report to Congress, within 60 days after enactment, 
on the feasibility study.
            Section 305. Use of excess intercontinental ballistic 
                    missiles
    This section would codify Presidential Decision Directive/
National Science and Technology Council #4 of August 5, 1994, 
Part VII, Use of U.S. Excess Ballistic Missile Assets.
    The U.S. Government is currently storing almost 400 
ballistic missiles which cannot be used for their intended 
purpose due to recent treaty agreements. Storage costs for 
these missiles are about $10,000,000 a year, and the cost to 
destroy them far exceeds that amount.
    The missiles, which have already been paid for with 
taxpayer funds, can be used for new, peaceful and practical 
purposes--the launching of small payloads. This use, however, 
would require the conversion of the missiles' hardware into 
launch vehicles.
    This section would authorize the federal use of the 
converted space transportation vehicle if, within 30 days of 
the conversion the agency seeking the use of the missile 
notifies the U.S. Senate Committees on Commerce, Science, and 
Transportation and Armed Services and the U.S. House of 
Representatives Committees on National Security and Science 
that such use: (1) would result in cost savings to the Federal 
government compared to the cost of acquiring services from 
commercial providers; (2) would meet all mission requirements 
of the agency; (3) would be consistent with international 
obligations; and (4) is approved by the Secretary of Defense.
    In the event that the Secretary of Defense determines that 
compliance with the 30 day requirement would be inconsistent 
with immediate national security requirements, the Secretary 
would not be required to meet that time frame.
            Section 306. National launch capability
    This section would require the Secretary of Defense, within 
180 days of enactment of this Act, to submit to the U.S. Senate 
Committee on Commerce, Science, and Transportation and the U.S. 
House of Representatives Committee on Science a report that 
assesses: (1) the total potential launch capability of the 
United States through December 31, 2007; (2) the combined needs 
of the defense and civil sectors; (3) the deficiency in 
resources; (4) the level of funding necessary to address 
identified deficiencies; (5) opportunities for investment by 
non-federal entities; (6) various methods by which the control 
of the launch property and launch services of the Department of 
Defense may be transferred; and (7) the technical, structural, 
and legal impediments associated with making launch sites cost 
competitive on an international level.

                        changes in existing law

    In the opinion of the Committee, it is necessary to 
dispense with the requirements of paragraph 12 of Rule XXVI of 
the Standing Rules of the Senate in order to expedite the 
business of the Senate.