Commercial Space Act of 1998, Title II – P.L. 105-303

[NASA]

An Act

To encourage the development of a commercial space industry in the United States, and for other purposes.
Oct. 28, 1998 – [H.R. 1702]

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;
    (C) which of the opportunities described in subparagraph (A) the Administrator 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.”;

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

    “70109. Preemption of scheduled launches or reentries.”;

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

    “70120. Regulations. “70121. Report to Congress.”.

(2) in section 70101–
(A) by inserting “microgravity research,” after “information services,” in subsection (a)(3);
(B) by inserting “, reentry,” after “launching” both places it appears in subsection (a)(4);
(C) by inserting “, reentry vehicles,” after “launch vehicles” in subsection (a)(5);
(D) by inserting “and reentry services” after “launch services” in subsection (a)(6);
(E) by inserting “, reentries,” after “launches” both places it appears in subsection (a)(7);
(F) by inserting “, reentry sites,” after “launch sites” in subsection (a)(8);
(G) by inserting “and reentry services” after “launch services” in subsection (a)(8);
(H) by inserting “reentry sites,” after “launch sites,” in subsection (a)(9);
(I) by inserting “and reentry site” after “launch site” in subsection (a)(9);
(J) by inserting “, reentry vehicles,” after “launch vehicles” in subsection (b)(2);
(K) by striking “launch” in subsection (b)(2)(A);
(L) by inserting “and reentry” after “conduct of commercial launch” in subsection (b)(3);
(M) by striking “launch” after “and transfer commercial” in subsection (b)(3); and
(N) by inserting “and development of reentry sites,” after “launch-site support facilities,” in subsection (b)(4);
(3) in section 70102–
(A) in paragraph (3)–
(i) by striking “and any payload” and inserting in lieu thereof “or reentry vehicle and any payload from Earth”;
(ii) by striking the period at the end of subparagraph (C) and inserting in lieu thereof a comma; and
(iii) by adding after subparagraph (C) the following:

    “including activities involved in the preparation of a launch vehicle or payload for launch, when those activities take place at a launch site in the United States.”;

(B) by inserting “or reentry vehicle” after “means of a launch vehicle” in paragraph (8);
(C) by redesignating paragraphs (10), (11), and (12) as paragraphs (14), (15), 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
(C) by inserting “and reentry” after “space launch” in paragraph (2);
(5) in section 70104–
(A) by amending the section designation and heading to read as follows:

    “Sec. 70104. Restrictions on launches, operations, and reentries”;

(B) by inserting “or reentry site, or to reenter a reentry vehicle,” after “operate a launch site” each place it appears in subsection (a);
(C) by inserting “or reentry” after “launch or operation” in subsection (a)(3) and (4);
(D) in subsection (b)–
(i) by striking “launch license” and inserting in lieu thereof “license”;
(ii) by inserting “or reenter” after “may launch”; and
(iii) by inserting “or reentering” after “related to launching”; and
(E) in subsection (c)–
(i) by amending the subsection heading to read as follows: “Preventing Launches and Reentries.– ”;
(ii) by inserting “or reentry” after “prevent the launch”; and
(iii) by inserting “or reentry” after “decides the launch”;
(6) in section 70105–
(A) by inserting “(1)” before “A person may apply” in subsection (a);
(B) by striking “receiving an application” both places it appears in subsection (a) and inserting in lieu thereof “accepting an application in accordance with criteria established pursuant to subsection (b)(2)(D)”;
(C) NOTE: Notice. Deadline. by adding at the end of subsection (a) the following: “The Secretary shall transmit to the Committee on Science of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a written notice not later than 30 days after any occurrence when a license is not issued within the deadline established by this subsection.

    “(2) In carrying out paragraph (1), the Secretary may establish procedures for safety approvals of launch vehicles, reentry vehicles, safety systems, processes, services, or personnel that may be used in conducting licensed commercial space launch or reentry activities.”;

(D) by inserting “or a reentry site, or the reentry of a reentry vehicle,” after “operation of a launch site” in subsection (b)(1);
(E) by striking “or operation” and inserting in lieu thereof “, operation, or reentry” in subsection (b)(2)(A);
(F) by striking “and” at the end of subsection (b)(2)(B);
(G) by striking the period at the end of subsection (b)(2)(C) and inserting in lieu thereof “; and”;
(H) by adding at the end of subsection (b)(2) the following new subparagraph:

    “(D) regulations establishing criteria for accepting or rejecting an application for a license under this chapter within 60 days after receipt of such application.”; and (I) by inserting “, including the requirement to obtain a license,” after “waive a requirement” in subsection (b)(3);

(7) in section 70106(a)–
(A) by inserting “or reentry site” after “observer at a launch site”;
(B) by inserting “or reentry vehicle” after “assemble a launch vehicle”; and
(C) by inserting “or reentry vehicle” after “with a launch vehicle”;
(8) in section 70108–
(A) by amending the section designation and heading to read as follows:

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

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

    “Sec. 70109. Preemption of scheduled launches or reentries”;

(B) in subsection (a)–
(i) by inserting “or reentry” after “ensure that a launch”;
(ii) by inserting “, reentry site,” after “United States Government launch site”;
(iii) by inserting “or reentry date commitment” after “launch date commitment”;
(iv) by inserting “or reentry” after “obtained for a launch”;
(v) by inserting “, reentry site,” after “access to a launch site”;
(vi) by inserting “, or services related to a reentry,” after “amount for launch services”; and
(vii) by inserting “or reentry” after “the scheduled launch”; and

(C) in subsection (c), by inserting “or reentry” after “prompt launching”;
(10) in section 70110–
(A) by inserting “or reentry” after “prevent the launch” in subsection (a)(2); and
(B) by inserting “or reentry site, or reentry of a reentry vehicle,” after “operation of a launch site” in subsection (a)(3)(B);
(11) in section 70111–
(A) by inserting “or reentry” after “launch” in subsection (a)(1)(A);
(B) by inserting “and reentry services” after “launch services” in subsection (a)(1)(B);
(C) by inserting “or reentry services” after “or launch services” in subsection (a)(2);
(D) by 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);
(C) by inserting “or reentry services” after “launch services” in subsection (a)(4);
(D) in subsection (b)(1), by inserting “launch or reentry” after “(1) A”;
(E) by inserting “or reentry services” after “launch services” each place it appears in subsection (b);
(F) by inserting “applicable” after “carried out under the” in paragraphs (1) and (2) of subsection (b);
(G) by 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);
(C) by amending subsection (f ) to read as follows:

    “(f ) Launch Not an Export; Reentry Not an Import.–A launch vehicle, reentry vehicle, or payload that is launched or reentered is not, because of the launch or reentry, an export or import, respectively, for purposes of a law controlling exports or imports, 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.”.
    (c) Effective Date.–The amendments made by subsection (a)(6)(B) shall take effect upon the effective date of final regulations issued pursuant to section 70105(b)(2)(D) of title 49, United States Code, as added by subsection (a)(6)(H).

SEC. 103. LAUNCH VOUCHER DEMONSTRATION PROGRAM.

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

(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.

(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.
(c) Definition.–For purposes of this section, the term “space science data” 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.
(c) Study.–(1) The Administrator shall conduct a study to determine the extent 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
(C) identify policy, regulatory, and legislative barriers to the implementation of the recommendations made under this subsection.
(3) The results of the study conducted under this subsection shall be transmitted to the Congress within 6 months after the date of the enactment of this Act.
(d) Safety Standards.–Nothing in this section shall be construed to prohibit the Federal Government from requiring compliance with applicable safety standards.
(e) Administration and Execution.–This section shall be carried out as part of the Commercial Remote Sensing Program at the Stennis Space Center.
(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) <<NOTE: Federal Register, publication.>> 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

(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.
(c) Delayed Effect.–Subsection (a) shall not apply to space transportation services and space transportation vehicles acquired or owned by the Federal Government before the date of the enactment of this Act, or with respect to which a contract for such acquisition or ownership has been entered into before such date.
(d) Historical Purposes.–This section shall not be construed to prohibit the Federal Government from acquiring, owning, or maintaining space transportation vehicles solely for historical display purposes.

SEC. 202. ACQUISITION OF COMMERCIAL SPACE TRANSPORTATION SERVICES.

(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.
(c) Report to Congress.–Within 60 days after the date of the enactment of this Act, the National Aeronautics and Space Administration shall complete the study required under subsection (b) and shall submit a report on the study to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science of the House of Representatives.

SEC. 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;
(C) is consistent with international obligations of the United States; and
(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.
(c) Missiles Referred to.– The missiles referred to in this section are missiles 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).

(c) Report.–
(1) In general.–Not <<NOTE: Deadline.>> 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;
    (C) identify each deficiency in the resources referred to in subparagraph (B); 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 theDepartment 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);
    (C) one or more private sector entities; or
    (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.
Approved October 28, 1998.

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