United Nations Office for Outer Space Affairs

Selected Examples of National Laws Governing Space Activities: United States of America

Commercial Space Act of 1998

One Hundred Fifth Congress of the United States of America

AT THE SECOND SESSION

H.R.1702

Begun and held at the City of Washington on Tuesday, the twenty-seventh day of January, one thousand nine hundred and ninety-eight

An Act

To encourage the development of a commercial space industry in the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the 'Commercial Space Act of 1998'.

(b) TABLE OF CONTENTS-

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

Sec. 101. Commercialization of Space Station.

Sec. 102. Commercial space launch amendments.

Sec. 103. Launch voucher demonstration program.

Sec. 104. Promotion of United States Global Positioning System standards.

Sec. 105. Acquisition of space science data.

Sec. 106. Administration of Commercial Space Centers.

Sec. 107. Sources of Earth science data.

TITLE II--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

Sec. 201. Requirement to procure commercial space transportation services.

Sec. 202. Acquisition of commercial space transportation services.

Sec. 203. Launch Services Purchase Act of 1990 amendments.

Sec. 204. Shuttle privatization.

Sec. 205. Use of excess intercontinental ballistic missiles.

Sec. 206. National launch capability study.

SEC. 2. DEFINITIONS.

For purposes of this Act--

(1) the term 'Administrator' means the Administrator of the National Aeronautics

and Space Administration;

(2) the term 'commercial provider' means any person providing space

transportation services or other space-related activities, primary control of

which is held by persons other than Federal, State, local, and foreign

governments;

(3) the term 'payload' means anything that a person undertakes to transport to,

from, or within outer space, or in suborbital trajectory, by means of a space

transportation vehicle, but does not include the space transportation vehicle

itself except for its components which are specifically designed or adapted for

that payload;

(4) the term 'space-related activities' includes research and development,

manufacturing, processing, service, and other associated and support activities;

(5) the term 'space transportation services' means the preparation of a space

transportation vehicle and its payloads for transportation to, from, or within

outer space, or in suborbital trajectory, and the conduct of transporting a

payload to, from, or within outer space, or in suborbital trajectory;

(6) the term 'space transportation vehicle' means any vehicle constructed for

the purpose of operating in, or transporting a payload to, from, or within,

outer space, or in suborbital trajectory, and includes any component of such

vehicle not specifically designed or adapted for a payload;

(7) the term 'State' means each of the several States of the Union, the District

of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American

Samoa, the Commonwealth of the Northern Mariana Islands, and any other

commonwealth, territory, or possession of the United States; and

(8) the term 'United States commercial provider' means a commercial provider,

organized under the laws of the United States or of a State, which is--

(A) more than 50 percent owned by United States nationals; or

(B) a subsidiary of a foreign company and the Secretary of Transportation finds

that--

(i) such subsidiary has in the past evidenced a substantial commitment to the

United States market through--

(I) investments in the United States in long-term research, development, and

manufacturing (including the manufacture of major components and subassemblies);

and

(II) significant contributions to employment in the United States; and

(ii) the country or countries in which such foreign company is incorporated or

organized, and, if appropriate, in which it principally conducts its business,

affords reciprocal treatment to companies described in subparagraph (A)

comparable to that afforded to such foreign company's subsidiary in the United

States, as evidenced by--

(I) providing comparable opportunities for companies described in subparagraph

(A) to participate in Government sponsored research and development similar to

that authorized under this Act;

(II) providing no barriers, to companies described in subparagraph (A) with

respect to local investment opportunities, that are not provided to foreign

companies in the United States; and

(III) providing adequate and effective protection for the intellectual property

rights of companies described in subparagraph (A).

TITLE I--PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES

SEC. 101. COMMERCIALIZATION OF SPACE STATION.

(a) POLICY- The Congress declares that a priority goal of constructing the

International Space Station is the economic development of Earth orbital space.

The Congress further declares that free and competitive markets create the most

efficient conditions for promoting economic development, and should therefore

govern the economic development of Earth orbital space. The Congress further

declares that the use of free market principles in operating, servicing,

allocating the use of, and adding capabilities to the Space Station, and the

resulting fullest possible engagement of commercial providers and participation

of commercial users, will reduce Space Station operational costs for all

partners and the Federal Government's share of the United States burden to fund

operations.

(b) REPORTS- (1) The Administrator shall deliver to the Committee on Science of

the House of Representatives and the Committee on Commerce, Science, and

Transportation of the Senate, within 90 days after the date of the enactment of

this Act, a study that identifies and examines--

(A) the opportunities for commercial providers to play a role in International

Space Station activities, including operation, use, servicing, and augmentation;

(B) the potential cost savings to be derived from commercial providers playing a

role in each of these activities;

plans to make available to commercial providers in fiscal years 1999 and 2000;

(D) the specific policies and initiatives the Administrator is advancing to

encourage and facilitate these commercial opportunities; and

(E) the revenues and cost reimbursements to the Federal Government from

commercial users of the Space Station.

(2) The Administrator shall deliver to the Committee on Science of the House of

Representatives and the Committee on Commerce, Science, and Transportation of

the Senate, within 180 days after the date of the enactment of this Act, an

independently conducted market study that examines and evaluates potential

industry interest in providing commercial goods and services for the operation,

servicing, and augmentation of the International Space Station, and in the

commercial use of the International Space Station. This study shall also include

updates to the cost savings and revenue estimates made in the study described in

paragraph (1) based on the external market assessment.

(3) The Administrator shall deliver to the Congress, no later than the

submission of the President's annual budget request for fiscal year 2000, a

report detailing how many proposals (whether solicited or not) the National

Aeronautics and Space Administration received during calendar years 1997 and

1998 regarding commercial operation, servicing, utilization, or augmentation of

the International Space Station, broken down by each of these four categories,

and specifying how many agreements the National Aeronautics and Space

Administration has entered into in response to these proposals, also broken down

by these four categories.

(4) Each of the studies and reports required by paragraphs (1), (2), and (3)

shall include consideration of the potential role of State governments as

brokers in promoting commercial participation in the International Space Station

program.

SEC. 102. COMMERCIAL SPACE LAUNCH AMENDMENTS.

(a) AMENDMENTS- Chapter 701 of title 49, United States Code, is amended--

(1) in the table of sections--

(A) by amending the item relating to section 70104 to read as follows:

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

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

'70108. Prohibition, suspension, and end of launches, operation of launch sites

and reentry sites, and reentries.';

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

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

'70120. Regulations.

'70121. Report to Congress.'.

(2) in section 70101--

(A) by inserting 'microgravity research,' after 'information services,' in

subsection (a)(3);

(B) by inserting ', reentry,' after 'launching' both places it appears in

subsection (a)(4);

(a)(5);

(D) by inserting 'and reentry services' after 'launch services' in subsection

(a)(6);

(E) by inserting ', reentries,' after 'launches' both places it appears in

subsection (a)(7);

(F) by inserting ', reentry sites,' after 'launch sites' in subsection (a)(8);

(G) by inserting 'and reentry services' after 'launch services' in subsection

(a)(8);

(H) by inserting 'reentry sites,' after 'launch sites,' in subsection (a)(9);

(I) by inserting 'and reentry site' after 'launch site' in subsection (a)(9);

(J) by inserting ', reentry vehicles,' after 'launch vehicles' in subsection

(b)(2);

(K) by striking 'launch' in subsection (b)(2)(A);

(L) by inserting 'and reentry' after 'conduct of commercial launch' in

subsection (b)(3);

(M) by striking 'launch' after 'and transfer commercial' in subsection (b)(3);

and

(N) by inserting 'and development of reentry sites,' after 'launch-site support

facilities,' in subsection (b)(4);

(3) in section 70102--

(A) in paragraph (3)--

(i) by striking 'and any payload' and inserting in lieu thereof 'or reentry

vehicle and any payload from Earth';

(ii) by striking the period at the end of subparagraph (C) and inserting in lieu

thereof a comma; and

(iii) by adding after subparagraph (C) the following:

'including activities involved in the preparation of a launch vehicle or payload

for launch, when those activities take place at a launch site in the United

States.';

(B) by inserting 'or reentry vehicle' after 'means of a launch vehicle' in

paragraph (8);

and (16), respectively;

(D) by inserting after paragraph (9) the following new paragraphs:

'(10) 'reenter' and 'reentry' mean to return or attempt to return, purposefully,

a reentry vehicle and its payload, if any, from Earth orbit or from outer space

to Earth.

'(11) 'reentry services' means--

'(A) activities involved in the preparation of a reentry vehicle and its

payload, if any, for reentry; and

'(B) the conduct of a reentry.

'(12) 'reentry site' means the location on Earth to which a reentry vehicle is

intended to return (as defined in a license the Secretary issues or transfers

under this chapter).

'(13) 'reentry vehicle' means a vehicle designed to return from Earth orbit or

outer space to Earth, or a reusable launch vehicle designed to return from Earth

orbit or outer space to Earth, substantially intact.'; and

(E) by inserting 'or reentry services' after 'launch services' each place it

appears in paragraph (15), as so redesignated by subparagraph (C) of this

paragraph;

(4) in section 70103(b)--

(A) by inserting 'AND REENTRIES' after 'LAUNCHES' in the subsection heading;

(B) by inserting 'and reentries' after 'commercial space launches' in paragraph

(1); and

(5) in section 70104--

(A) by amending the section designation and heading to read as follows:

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

(B) by inserting 'or reentry site, or to reenter a reentry vehicle,' after

'operate a launch site' each place it appears in subsection (a);

and (4);

(D) in subsection (b)--

(i) by striking 'launch license' and inserting in lieu thereof 'license';

(ii) by inserting 'or reenter' after 'may launch'; and

(iii) by inserting 'or reentering' after 'related to launching'; and

(E) in subsection (c)--

(i) by amending the subsection heading to read as follows: 'PREVENTING LAUNCHES

AND REENTRIES - ';

(ii) by inserting 'or reentry' after 'prevent the launch'; and

(iii) by inserting 'or reentry' after 'decides the launch';

(6) in section 70105--

(A) by inserting '(1)' before 'A person may apply' in subsection (a);

(B) by striking 'receiving an application' both places it appears in subsection

(a) and inserting in lieu thereof 'accepting an application in accordance with

criteria established pursuant to subsection (b)(2)(D)';

transmit to the Committee on Science of the House of Representatives and the

Committee on Commerce, Science, and Transportation of the Senate a written

notice not later than 30 days after any occurrence when a license is not issued

within the deadline established by this subsection.

'(2) In carrying out paragraph (1), the Secretary may establish procedures for

safety approvals of launch vehicles, reentry vehicles, safety systems,

processes, services, or personnel that may be used in conducting licensed

commercial space launch or reentry activities.';

(D) by inserting 'or a reentry site, or the reentry of a reentry vehicle,' after

'operation of a launch site' in subsection (b)(1);

(E) by striking 'or operation' and inserting in lieu thereof ', operation, or

reentry' in subsection (b)(2)(A);

(F) by striking 'and' at the end of subsection (b)(2)(B);

(G) by striking the period at the end of subsection (b)(2)(C) and inserting in

lieu thereof '; and';

(H) by adding at the end of subsection (b)(2) the following new subparagraph:

'(D) regulations establishing criteria for accepting or rejecting an application

for a license under this chapter within 60 days after receipt of such

application.'; and

(I) by inserting ', including the requirement to obtain a license,' after 'waive

a requirement' in subsection (b)(3);

(7) in section 70106(a)--

(A) by inserting 'or reentry site' after 'observer at a launch site';

(B) by inserting 'or reentry vehicle' after 'assemble a launch vehicle'; and

(8) in section 70108--

(A) by amending the section designation and heading to read as follows:

'Sec. 70108. Prohibition, suspension, and end of launches, operation of launch

sites and reentry sites, and reentries'; and

(B) in subsection (a)--

(i) by inserting 'or reentry site, or reentry of a reentry vehicle,' after

'operation of a launch site'; and

(ii) by inserting 'or reentry' after 'launch or operation';

(9) in section 70109--

(A) by amending the section designation and heading to read as follows:

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

(B) in subsection (a)--

(i) by inserting 'or reentry' after 'ensure that a launch';

(ii) by inserting ', reentry site,' after 'United States Government launch

site';

(iii) by inserting 'or reentry date commitment' after 'launch date commitment';

(iv) by inserting 'or reentry' after 'obtained for a launch';

(v) by inserting ', reentry site,' after 'access to a launch site';

(vi) by inserting ', or services related to a reentry,' after 'amount for launch

services'; and

(vii) by inserting 'or reentry' after 'the scheduled launch'; and

(10) in section 70110--

(A) by inserting 'or reentry' after 'prevent the launch' in subsection (a)(2);

and

(B) by inserting 'or reentry site, or reentry of a reentry vehicle,' after

'operation of a launch site' in subsection (a)(3)(B);

(11) in section 70111--

(A) by inserting 'or reentry' after 'launch' in subsection (a)(1)(A);

(B) by inserting 'and reentry services' after 'launch services' in subsection

(a)(1)(B);

(a)(2);

(D) by striking 'source.' in subsection (a)(2) and inserting 'source, whether

such source is located on or off a Federal range.';

(E) by inserting 'or reentry' after 'commercial launch' both places it appears

in subsection (b)(1);

(F) by inserting 'or reentry services' after 'launch services' in subsection

(b)(2)(C);

(G) by inserting after subsection (b)(2) the following new paragraph:

'(3) The Secretary shall ensure the establishment of uniform guidelines for, and

consistent implementation of, this section by all Federal agencies.';

(H) by striking 'or its payload for launch' in subsection (d) and inserting in

lieu thereof 'or reentry vehicle, or the payload of either, for launch or

reentry'; and

(I) by inserting ', reentry vehicle,' after 'manufacturer of the launch vehicle'

in subsection (d);

(12) in section 70112--

(A) in subsection (a)(1), by inserting 'launch or reentry' after '(1) When a';

(B) by inserting 'or reentry' after 'one launch' in subsection (a)(3);

(a)(4);

(D) in subsection (b)(1), by inserting 'launch or reentry' after '(1) A';

(E) by inserting 'or reentry services' after 'launch services' each place it

appears in subsection (b);

(F) by inserting 'applicable' after 'carried out under the' in paragraphs (1)

and (2) of subsection (b);

(G) by inserting 'OR REENTRIES' after 'LAUNCHES' in the heading for subsection

(e);

(H) by inserting 'or reentry site or a reentry' after 'launch site' in

subsection (e); and

(I) in subsection (f), by inserting 'launch or reentry' after 'carried out under

a';

(13) in section 70113(a)(1) and (d)(1) and (2), by inserting 'or reentry' after

'one launch' each place it appears;

(14) in section 70115(b)(1)(D)(i)--

(A) by inserting 'reentry site,' after 'launch site,'; and

(B) by inserting 'or reentry vehicle' after 'launch vehicle' both places it

appears;

(15) in section 70117--

(A) by inserting 'or reentry site, or to reenter a reentry vehicle' after

'operate a launch site' in subsection (a);

(B) by inserting 'or reentry' after 'approval of a space launch' in subsection

(d);

'(f) LAUNCH NOT AN EXPORT; REENTRY NOT AN IMPORT- A launch vehicle, reentry

vehicle, or payload that is launched or reentered is not, because of the launch

or reentry, an export or import, respectively, for purposes of a law controlling

exports or imports, except that payloads launched pursuant to foreign trade zone

procedures as provided for under the Foreign Trade Zones Act (19 U.S.C. 81a-81u)

shall be considered exports with regard to customs entry.'; and

(D) in subsection (g)--

(i) by striking 'operation of a launch vehicle or launch site,' in paragraph (1)

and inserting in lieu thereof 'reentry, operation of a launch vehicle or reentry

vehicle, operation of a launch site or reentry site,'; and

(ii) by inserting 'reentry,' after 'launch,' in paragraph (2); and

(16) by adding at the end the following new sections:

'Sec. 70120. Regulations

'(a) IN GENERAL- The Secretary of Transportation, within 9 months after the date

of the enactment of this section, shall issue regulations to carry out this

chapter that include--

'(1) guidelines for industry and State governments to obtain sufficient

insurance coverage for potential damages to third parties;

'(2) procedures for requesting and obtaining licenses to launch a commercial

launch vehicle;

'(3) procedures for requesting and obtaining operator licenses for launch;

'(4) procedures for requesting and obtaining launch site operator licenses; and

'(5) procedures for the application of government indemnification.

'(b) REENTRY- The Secretary of Transportation, within 6 months after the date of

the enactment of this section, shall issue a notice of proposed rulemaking to

carry out this chapter that includes--

'(1) procedures for requesting and obtaining licenses to reenter a reentry

vehicle;

'(2) procedures for requesting and obtaining operator licenses for reentry; and

'(3) procedures for requesting and obtaining reentry site operator licenses.

'Sec. 70121. Report to Congress

'The Secretary of Transportation shall submit to Congress an annual report to

accompany the President's budget request that--

'(1) describes all activities undertaken under this chapter, including a

description of the process for the application for and approval of licenses

under this chapter and recommendations for legislation that may further

commercial launches and reentries; and

'(2) reviews the performance of the regulatory activities and the effectiveness

of the Office of Commercial Space Transportation.'.

(b) AUTHORIZATION OF APPROPRIATIONS- Section 70119 of title 49, United States

Code, is amended to read as follows:

'Sec. 70119. Authorization of appropriations

'There are authorized to be appropriated to the Secretary of Transportation for

the activities of the Office of the Associate Administrator for Commercial Space

Transportation--

'(1) $6,275,000 for the fiscal year ending September 30, 1999; and

'(2) $6,600,000 for the fiscal year ending September 30, 2000.'.

effect upon the effective date of final regulations issued pursuant to section

70105(b)(2)(D) of title 49, United States Code, as added by subsection

(a)(6)(H).

SEC. 103. LAUNCH VOUCHER DEMONSTRATION PROGRAM.

Section 504 of the National Aeronautics and Space Administration Authorization

Act, Fiscal Year 1993 (15 U.S.C. 5803) is amended--

(1) in subsection (a)--

(A) by striking 'the Office of Commercial Programs within'; and

(B) by striking 'Such program shall not be effective after September 30, 1995.';

(2) by striking subsection (c); and

(3) by redesignating subsections (d) and (e) as subsections (c) and (d),

respectively.

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

(a) FINDING- The Congress finds that the Global Positioning System, including

satellites, signal equipment, ground stations, data links, and associated

command and control facilities, has become an essential element in civil,

scientific, and military space development because of the emergence of a United

States commercial industry which provides Global Positioning System equipment

and related services.

(b) INTERNATIONAL COOPERATION- In order to support and sustain the Global

Positioning System in a manner that will most effectively contribute to the

national security, public safety, scientific, and economic interests of the

United States, the Congress encourages the President to--

(1) ensure the operation of the Global Positioning System on a continuous

worldwide basis free of direct user fees;

(2) enter into international agreements that promote cooperation with foreign

governments and international organizations to--

(A) establish the Global Positioning System and its augmentations as an

acceptable international standard; and

(B) eliminate any foreign barriers to applications of the Global Positioning

System worldwide; and

(3) provide clear direction and adequate resources to the Assistant Secretary of

Commerce for Communications and Information so that on an international basis

the Assistant Secretary can--

(A) achieve and sustain efficient management of the electromagnetic spectrum

used by the Global Positioning System; and

(B) protect that spectrum from disruption and interference.

SEC. 105. ACQUISITION OF SPACE SCIENCE DATA.

(a) ACQUISITION FROM COMMERCIAL PROVIDERS- The Administrator shall, to the

extent possible and while satisfying the scientific or educational requirements

of the National Aeronautics and Space Administration, and where appropriate, of

other Federal agencies and scientific researchers, acquire, where cost

effective, space science data from a commercial provider.

(b) TREATMENT OF SPACE SCIENCE DATA AS COMMERCIAL ITEM UNDER ACQUISITION LAWS-

Acquisitions of space science data by the Administrator shall be carried out in

accordance with applicable acquisition laws and regulations (including chapters

137 and 140 of title 10, United States Code). For purposes of such law and

regulations, space science data shall be considered to be a commercial item.

Nothing in this subsection shall be construed to preclude the United States from

acquiring, through contracts with commercial providers, sufficient rights in

data to meet the needs of the scientific and educational community or the needs

of other government activities.

includes scientific data concerning--

(1) the elemental and mineralogical resources of the moon, asteroids, planets

and their moons, and comets;

(2) microgravity acceleration; and

(3) solar storm monitoring.

(d) SAFETY STANDARDS- Nothing in this section shall be construed to prohibit the

Federal Government from requiring compliance with applicable safety standards.

(e) LIMITATION- This section does not authorize the National Aeronautics and

Space Administration to provide financial assistance for the development of

commercial systems for the collection of space science data.

SEC. 106. ADMINISTRATION OF COMMERCIAL SPACE CENTERS.

The Administrator shall administer the Commercial Space Center program in a

coordinated manner from National Aeronautics and Space Administration

headquarters in Washington, D.C.

SEC. 107. SOURCES OF EARTH SCIENCE DATA.

(a) ACQUISITION- The Administrator shall, to the extent possible and while

satisfying the scientific or educational requirements of the National

Aeronautics and Space Administration, and where appropriate, of other Federal

agencies and scientific researchers, acquire, where cost-effective, space-based

and airborne Earth remote sensing data, services, distribution, and applications

from a commercial provider.

(b) TREATMENT AS COMMERCIAL ITEM UNDER ACQUISITION LAWS- Acquisitions by the

Administrator of the data, services, distribution, and applications referred to

in subsection (a) shall be carried out in accordance with applicable acquisition

laws and regulations (including chapters 137 and 140 of title 10, United States

Code). For purposes of such law and regulations, such data, services,

distribution, and applications shall be considered to be a commercial item.

Nothing in this subsection shall be construed to preclude the United States from

acquiring, through contracts with commercial providers, sufficient rights in

data to meet the needs of the scientific and educational community or the needs

of other government activities.

to which the baseline scientific requirements of Earth Science can be met by

commercial providers, and how the National Aeronautics and Space Administration

will meet such requirements which cannot be met by commercial providers.

(2) The study conducted under this subsection shall--

(A) make recommendations to promote the availability of information from the

National Aeronautics and Space Administration to commercial providers to enable

commercial providers to better meet the baseline scientific requirements of

Earth Science;

(B) make recommendations to promote the dissemination to commercial providers of

information on advanced technology research and development performed by or for

the National Aeronautics and Space Administration; and

of the recommendations made under this subsection.

(3) The results of the study conducted under this subsection shall be

transmitted to the Congress within 6 months after the date of the enactment of

this Act.

(d) SAFETY STANDARDS- Nothing in this section shall be construed to prohibit the

Federal Government from requiring compliance with applicable safety standards.

(e) ADMINISTRATION AND EXECUTION- This section shall be carried out as part of

the Commercial Remote Sensing Program at the Stennis Space Center.

(f) REMOTE SENSING-

(1) APPLICATION CONTENTS- Section 201(b) of the Land Remote Sensing Policy Act

of 1992 (15 U.S.C. 5621(b)) is amended--

(A) by inserting '(1)' after 'NATIONAL SECURITY- '; and

(B) by adding at the end the following new paragraph:

'(2) The Secretary, within 6 months after the date of the enactment of the

Commercial Space Act of 1998, shall publish in the Federal Register a complete

and specific list of all information required to comprise a complete application

for a license under this title. An application shall be considered complete when

the applicant has provided all information required by the list most recently

published in the Federal Register before the date the application was first

submitted. Unless the Secretary has, within 30 days after receipt of an

application, notified the applicant of information necessary to complete an

application, the Secretary may not deny the application on the basis of the

absence of any such information.'.

(2) NOTIFICATION OF AGREEMENTS- Section 202(b)(6) of the Land Remote Sensing

Policy Act of 1992 (15 U.S.C. 5622(b)(6)) is amended by inserting 'significant

or substantial' after 'Secretary of any'.

TITLE II--FEDERAL ACQUISITION OF SPACE TRANSPORTATION SERVICES

SEC. 201. REQUIREMENT TO PROCURE COMMERCIAL SPACE TRANSPORTATION SERVICES.

(a) IN GENERAL- Except as otherwise provided in this section, the Federal

Government shall acquire space transportation services from United States

commercial providers whenever such services are required in the course of its

activities. To the maximum extent practicable, the Federal Government shall plan

missions to accommodate the space transportation services capabilities of United

States commercial providers.

(b) EXCEPTIONS- The Federal Government shall not be required to acquire space

transportation services under subsection (a) if, on a case-by-case basis, the

Administrator or, in the case of a national security issue, the Secretary of the

Air Force, determines that--

(1) a payload requires the unique capabilities of the Space Shuttle;

(2) cost effective space transportation services that meet specific mission

requirements would not be reasonably available from United States commercial

providers when required;

(3) the use of space transportation services from United States commercial

providers poses an unacceptable risk of loss of a unique scientific opportunity;

(4) the use of space transportation services from United States commercial

providers is inconsistent with national security objectives;

(5) the use of space transportation services from United States commercial

providers is inconsistent with international agreements for international

collaborative efforts relating to science and technology;

(6) it is more cost effective to transport a payload in conjunction with a test

or demonstration of a space transportation vehicle owned by the Federal

Government; or

(7) a payload can make use of the available cargo space on a Space Shuttle

mission as a secondary payload, and such payload is consistent with the

requirements of research, development, demonstration, scientific, commercial,

and educational programs authorized by the Administrator.

Nothing in this section shall prevent the Administrator from planning or

negotiating agreements with foreign entities for the launch of Federal

Government payloads for international collaborative efforts relating to science

and technology.

services and space transportation vehicles acquired or owned by the Federal

Government before the date of the enactment of this Act, or with respect to

which a contract for such acquisition or ownership has been entered into before

such date.

(d) HISTORICAL PURPOSES- This section shall not be construed to prohibit the

Federal Government from acquiring, owning, or maintaining space transportation

vehicles solely for historical display purposes.

SEC. 202. ACQUISITION OF COMMERCIAL SPACE TRANSPORTATION SERVICES.

(a) TREATMENT OF COMMERCIAL SPACE TRANSPORTATION SERVICES AS COMMERCIAL ITEM

UNDER ACQUISITION LAWS-

Acquisitions of space transportation services by the Federal Government shall be

carried out in accordance with applicable acquisition laws and regulations

(including chapters 137 and 140 of title 10, United States Code). For purposes

of such law and regulations, space transportation services shall be considered

to be a commercial item.

(b) SAFETY STANDARDS- Nothing in this section shall be construed to prohibit the

Federal Government from requiring compliance with applicable safety standards.

SEC. 203. LAUNCH SERVICES PURCHASE ACT OF 1990 AMENDMENTS.

The Launch Services Purchase Act of 1990 (42 U.S.C. 2465b et seq.) is amended--

(1) by striking section 202;

(2) in section 203--

(A) by striking paragraphs (1) and (2); and

(B) by redesignating paragraphs (3) and (4) as paragraphs (1) and (2),

respectively;

(3) by striking sections 204 and 205; and

(4) in section 206--

(A) by striking '(a) COMMERCIAL PAYLOADS ON THE SPACE SHUTTLE- '; and

(B) by striking subsection (b).

SEC. 204. SHUTTLE PRIVATIZATION.

(a) POLICY AND PREPARATION- The Administrator shall prepare for an orderly

transition from the Federal operation, or Federal management of contracted

operation, of space transportation systems to the Federal purchase of commercial

space transportation services for all nonemergency space transportation

requirements for transportation to and from Earth orbit, including human, cargo,

and mixed payloads. In those preparations, the Administrator shall take into

account the need for short-term economies, as well as the goal of restoring the

National Aeronautics and Space Administration's research focus and its mandate

to promote the fullest possible commercial use of space. As part of those

preparations, the Administrator shall plan for the potential privatization of

the Space Shuttle program. Such plan shall keep safety and cost effectiveness as

high priorities. Nothing in this section shall prohibit the National Aeronautics

and Space Administration from studying, designing, developing, or funding

upgrades or modifications essential to the safe and economical operation of the

Space Shuttle fleet.

(b) FEASIBILITY STUDY- The Administrator shall conduct a study of the

feasibility of implementing the recommendation of the Independent Shuttle

Management Review Team that the National Aeronautics and Space Administration

transition toward the privatization of the Space Shuttle. The study shall

identify, discuss, and, where possible, present options for resolving, the major

policy and legal issues that must be addressed before the Space Shuttle is

privatized, including--

(1) whether the Federal Government or the Space Shuttle contractor should own

the Space Shuttle orbiters and ground facilities;

(2) whether the Federal Government should indemnify the contractor for any third

party liability arising from Space Shuttle operations, and, if so, under what

terms and conditions;

(3) whether payloads other than National Aeronautics and Space Administration

payloads should be allowed to be launched on the Space Shuttle, how missions

will be prioritized, and who will decide which mission flies and when;

(4) whether commercial payloads should be allowed to be launched on the Space

Shuttle and whether any classes of payloads should be made ineligible for launch

consideration;

(5) whether National Aeronautics and Space Administration and other Federal

Government payloads should have priority over non-Federal payloads in the Space

Shuttle launch assignments, and what policies should be developed to prioritize

among payloads generally;

(6) whether the public interest requires that certain Space Shuttle functions

continue to be performed by the Federal Government; and

(7) how much cost savings, if any, will be generated by privatization of the

Space Shuttle.

Act, the National Aeronautics and Space Administration shall complete the study

required under subsection (b) and shall submit a report on the study to the

Committee on Commerce, Science, and Transportation of the Senate and the

Committee on Science of the House of Representatives.

SEC. 205. USE OF EXCESS INTERCONTINENTAL BALLISTIC MISSILES.

(a) IN GENERAL- The Federal Government shall not--

(1) convert any missile described in subsection (c) to a space transportation

vehicle configuration; or

(2) transfer ownership of any such missile to another person, except as provided

in subsection (b).

(b) AUTHORIZED FEDERAL USES- (1) A missile described in subsection (c) may be

converted for use as a space transportation vehicle by the Federal Government

if, except as provided in paragraph (2) and at least 30 days before such

conversion, the agency seeking to use the missile as a space transportation

vehicle transmits to the Committee on National Security and the Committee on

Science of the House of Representatives, and to the Committee on Armed Services

and the Committee on Commerce, Science, and Transportation of the Senate, a

certification that the use of such missile--

(A) would result in cost savings to the Federal Government when compared to the

cost of acquiring space transportation services from United States commercial

providers;

(B) meets all mission requirements of the agency, including performance,

schedule, and risk requirements;

(D) is approved by the Secretary of Defense or his designee.

(2) The requirement under paragraph (1) that the certification described in that

paragraph must be transmitted at least 30 days before conversion of the missile

shall not apply if the Secretary of Defense determines that compliance with that

requirement would be inconsistent with meeting immediate national security

requirements.

owned by the United States that--

(1) were formerly used by the Department of Defense for national defense

purposes as intercontinental ballistic missiles; and

(2) have been declared excess to United States national defense needs and are in

compliance with international obligations of the United States.

SEC. 206. NATIONAL LAUNCH CAPABILITY STUDY.

(a) FINDINGS- Congress finds that a robust satellite and launch industry in the

United States serves the interest of the United States by--

(1) contributing to the economy of the United States;

(2) strengthening employment, technological, and scientific interests of the

United States; and

(3) serving the foreign policy and national security interests of the United

States.

(b) DEFINITIONS- In this section:

(1) SECRETARY- The term 'Secretary' means the Secretary of Defense.

(2) TOTAL POTENTIAL NATIONAL MISSION MODEL- The term 'total potential national

mission model' means a model that--

(A) is determined by the Secretary, in consultation with the Administrator, to

assess the total potential space missions to be conducted in the United States

during a specified period of time; and

(B) includes all launches in the United States (including launches conducted on

or off a Federal range).

(1) IN GENERAL- Not later than 180 days after the date of enactment of this Act,

the Secretary shall, in consultation with the Administrator and appropriate

representatives of the satellite and launch industry and the governments of

States and political subdivisions thereof--

(A) prepare a report that meets the requirements of this subsection; and

(B) submit that report to the Committee on Commerce, Science, and Transportation

of the Senate and the Committee on Science of the House of Representatives.

(2) REQUIREMENTS FOR REPORT- The report prepared under this subsection shall--

(A) identify the total potential national mission model for the period beginning

on the date of the report and ending on December 31, 2007;

(B) identify the resources that are necessary or available to carry out the

total potential national mission model described in subparagraph (A),

including--

(i) launch property and services of the Department of Defense, the National

Aeronautics and Space Administration, and non-Federal facilities; and

(ii) the ability to support commercial launch-on-demand on short notification,

taking into account Federal requirements, at launch sites or test ranges in the

United States;

and

(D) with respect to the deficiencies identified under subparagraph (C), include

estimates of the level of funding necessary to address those deficiencies for

the period described in subparagraph (A).

(d) RECOMMENDATIONS- Based on the reports under subsection (c), the Secretary,

after consultation with the Secretary of Transportation, the Secretary of

Commerce, and representatives from interested private sector entities, States,

and local governments, shall--

(1) identify opportunities for investment by non-Federal entities (including

States and political subdivisions thereof and private sector entities) to assist

the Federal Government in providing launch capabilities for the commercial space

industry in the United States;

(2) identify one or more methods by which, if sufficient resources referred to

in subsection (c)(2)(D) are not available to the Department of Defense and the

National Aeronautics and Space Administration, the control of the launch

property and launch services of the Department of Defense and the National

Aeronautics and Space Administration may be transferred from the Department of

Defense and the National Aeronautics and Space Administration to--

(A) one or more other Federal agencies;

(B) one or more States (or subdivisions thereof);

(D) any combination of the entities described in subparagraphs (A) through (C);

and

(3) identify the technical, structural, and legal impediments associated with

making launch sites or test ranges in the United States viable and competitive.