DRAFT

NOAA ADVISORY COMMITTEE FOR COMMERCIAL REMOTE SENSING (ACCRES)

SUMMARY OF MEETING

September 30, 2002

The NOAA Advisory Committee for Commercial Remote Sensing (ACCRES) was
convened for its first meeting at 1:00 P.M. on September 30, 2002, at
the Ronald Reagan Building and International Trade Center Hemisphere A
Room, Washington, DC.

In accordance with the provisions of Public Law 92-463, the meeting was
open to the public.

The chairman, Robert Winokur, (Earth Satellite Corporation), thanked
committee members for agreeing to serve on this important new advisory
committee and welcomed members of the public. Mr. Winokur noted that the
Advisory Committee had been established for a two-year period with an
option to extend its work for a further two years. The goal for the
first meeting of the Committee was to establish the issues to be
considered, compile the Committee's agenda for the future, and to
determine how to assemble the information necessary to move forward. The
Chairman would work to build consensus on issues as far as possible.

Members of the Committee provided brief self-introductions and members
of the public in attendance identified themselves by name and
affiliation. (58 members of the public attended the meeting).

Committee members present:

Dr. Wanda Austin, Aerospace Corporation

Lt. General James Clapper, National Imagery and Mapping Agency

Mr. Richard Cooke, Research Systems, Incorporated

Mr. John Copple, Space Imaging, LLC

Mr. Martin Faga, MITRE

Dr. Joanne Gabrynowicz, University of Mississippi

Dr. Charles Groat, U.S. Geological Survey

Dr. Terrence Keating, American Society for Photogrammetry and Remote
Sensing

Mr. Victor Leonard, Resource 21, LLC

Mr. Kevin O'Connell, RAND (Committee Vice Chair)

Mr. Frank Williams, on behalf of Mr. Michael Hewins, Astrovision,
Incorporated

Mr. Robert Winokur, Earth Satellite Corporation (Committee Chair)

Presiding/Presenting Staff of National Oceanic and Atmospheric
Administration (NOAA):

Ms. Karen Dacres, Satellite Programs Counsel

Mr. Timothy Stryker, Remote Sensing Licensing Coordinator, NOAA/NESDIS
International and Interagency Affairs

Mr. Gregory Withee, Assistant Administrator for Satellite and
Information Services

OPENING REMARKS

Mr. Withee thanked attendees noting that the purpose of this Advisory
Committee is to provide valuable advice to the nation on existing and
anticipated commercial remote sensing (CRS) issues specifically in
relation to the responsibilities of the Department of Commerce set out
in the Land Remote Sensing Policy Act of 1992. Commenting on the breadth
of representation both on the Committee and among~~st~~ members of the
public in attendance, Mr. Withee emphasized the need for a broad
spectrum of input from government, industry and the non-profit sector on
licensing issues in commercial remote sensing.

NOAA provided seven initial questions for consideration by the
Committee:

-   How can NOAA license U.S. systems to compete effectively with new,
    advanced foreign systems?

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-   How can NOAA, working with other USG agencies and foreign
    governments, help facilitate a better international business
    environment for U.S. commercial remote sensing firms?

-   What licensing provisions might NOAA enact to enable USG purchase
    and use of commercial data, and its effective integration into
    civilian and military remote sensing programs?

-   What risks and investment disincentives might NOAA inadvertently be
    placing on U.S. industry, and what can be done to address these
    issues?

-   What does NOAA need to do, in coordination with other USG agencies,
    to develop more consistent and predictable regulatory process for
    U.S. industry?

-   How should NOAA license new and increasingly advanced commercial
    dual use technologies (e.g. synthetic aperture radar, hyperspectral
    imaging, LIDAR), which have significant military and intelligence
    applications?

-   What information or other resources would the Committee recommend
    for use in reviewing NOAA's licensing program and practices?

In closing, Mr. Withee noted that the Committee is empowered to request
NOAA to undertake further research and gather information to assist the
Committee in its deliberations.

COMMITTEE ADMINISTRATIVE PROCEDURES

Karen Dacres outlined committee procedures. The Committee will function
in accordance with the provisions of the Federal Advisory Committee Act.
Timothy Stryker will be NOAA's Designated Federal Officer, responsible
for Committee management and oversight. Appropriate notice of meetings
will be given and minutes will be published. If a meeting or a portion
of a meeting of the Committee needs to be closed notification of the
meeting format will be published with appropriate advance notice in the
Federal Register.

NOAA LICENSING AND REGULATORY ACTIVITIES

Timothy Stryker provided an overview of licensing and regulatory
activities at NOAA for commercial remote sensing. The primary goals of
the NOAA licensing office are to protect U.S. national security concerns
and foreign policy interests; to advance critical aerospace and
information technologies to support the U.S. industrial base; and to
promote job creation, economic growth, sustainable development, and
improved living standards.

The NOAA licensing team conducts it program in accordance with U.S.
laws, regulations, and U.N. Principles. Primarily, Mr. Stryker referred
to the 1992 Land Remote Sensing Policy Act, which granted authority for
licensing CRS satellite systems to the Department of Commerce; the 1994
Presidential Decision Directive 23 which set the stage for high
resolution, advanced technology systems licensing; the February 2000
Interagency agreement which established timelines, practices and
procedures for licensing; and, the June 2002 National Security
Presidential Directive 15 which established an ongoing White House
review of space policies.

Other government agencies and offices play a role in decisions
concerning CRS activities, including the Departments of Defense, State,
and Interior as well as the intelligence community, the White House and
three additional bureaus within the Department of Commerce: the
International Trade Administration (ITA), Technology Administration and
the Bureau of Industrial Security. To date, 18 licenses have been
granted for 41 satellites, representing approximately \$2 billion system
investment and offering a range of capabilities including panchromatic,
multispectral, synthetic aperture radar and hyperspectral data. The CRS
industry represents many important overseas partnerships. Prevailing
licensing conditions and monitoring and compliance issues were reviewed.
Special projects currently in work for the NOAA Licensing Team include
CRS risk analysis; a market study of CRS which projects a 10-year
forecast for the industry including workforce issues and an assessment
of the education and training that will be needed to carry the industry
forward; a study of foreign government policy together with assembly of
a database on commercial availability; and an international commercial
space policy study.

In response to a question from Dr. Austin, Mr. Stryker indicated that
license processing could be completed in close to 120-days (the mandated
licensing period) if a similar system had been processed previously. The
database on international CRS availability was discussed. Committee
members emphasized the importance of compiling as complete a database as
possible. Mr. Copple suggested that CRS companies and other interested
parties be tapped for relevant data they had collected. Mr. Stryker
stated that development had just commenced and he would interact with
Committee members on database configuration. Dr. Gabrynowicz emphasized
the difficulty involved in obtaining good information on foreign legal
regimes. She will share information she has available with the
Committee.

WELCOME

Vice Admiral Conrad Lautenbacher, Under Secretary of Commerce for Oceans
and Atmosphere conveyed the appreciation of the Secretary of Commerce to
members of the Committee for their willingness to serve on ACCRES. He
emphasized the importance of maximizing the dialogue between
representatives of government and the people they serve, while
recognizing the significant national and world security issues that are
on the table.

Scott Gudes, Deputy Under Secretary of Commerce for Oceans and
Atmosphere discussed the longstanding role of NOAA as both the licenser
and enforcer of regulations concerning commercial remote sensing. He
noted that all NOAA programs revolve around partnerships with the
commercial and academic worlds. Advice is needed on dealing with
numerous CRS licensing issues in an expanding, evolving, and complex
industry.

ANALYSIS OF RISKS IN THE U.S. COMMERCIAL REMOTE SENSING SATELLITE
INDUSTRY

John Baker of the RAND Corporation presented a summary of the risk
analysis undertaken by the Rand Corporation for NOAA and ITA, published
in 2001. While technical issues can pose major problems for commercial
remote sensing firms \--the loss of a satellite, for example, presents a
major challenge \-- the analysis concluded that "market" remains the
predominant risk.

In the regulatory and policy environment a better understanding of CRS
issues and procedures is emerging but getting to this point has been
tough. The exclusive contracting agreement under NIMA provided an
unexpected outcome on shutter control but leaves an unclear message as
to how shutter control will be handled in the future. However it is
clear that force protection is a driver in current US policy.

The CRS industry needs to reach beyond highly specialized users to the
broader marketplace. There is more competition than at any earlier time
in the industry and most foreign firms receive government support. The
U.S. commercial remote sensing industry is the only fully commercial
industry in the field.

The study reviewed geospatial market trends. The U.S. industry has
focused on Earth Observing systems and needs to look to the next
generation of imaging systems. Some interesting, innovative, and unusual
international collaborations have evolved for a number of reasons;
sometimes to obtain access to markets. U.S. policy has a real impact on
access to markets and collaborations. The international regulatory arena
is evolving as countries deal with issues and interests. In the future
not only new technologies but new business models, new partnerships, and
creative financial approaches will be needed.

The complete report can be accessed at
www.rand.org/publictions/MR/MR1469/.

In the opinion of Dr. Gabrynowicz a precedent had been established in
regard to shutter control that presumes imagery will be made public at
some point. Recent experience also suggests that companies will receive
the market price for goods and services during periods of shutter
control.

Dr. Austin queried whether there had been any effort to understand what
products are in demand in the commercial remote sensing marketplace. The
Rand analysis did not review trends in demand but the American Society
for Photogrammetry and Remote Sensing (APRS) is working to determine
specific data resolution demands. Mr. O'Connell observed that the
priority amongst foreign competitors has been development of business
models designed to outpace U.S. models rather than expansion of product
capabilities.

The Chairman commented that this is a critical time in the evolution of
the CRS industry and the Committee should consider what issues should be
dealt with at the next meeting.

PUBLIC COMMENT

Charles Mondello (Pictometry) commented that ASPRS was working on a
ten-year forecast study, and noted ASPRS's ability to provide a detailed
briefing at the next Committee meeting..

Paul Blase (Transorbital Inc.) thanked NOAA for the straightforward
processing of his company's license application.

In response to a question from Christopher Myers (Lockheed Martin
Corporation) about the formation and function of Working Groups of the
Committee the Chairman indicated that would be discussed later in the
meeting.

The Committee will also accept written comments. They should be directed
to Timothy. Stryker@noaa.gov.

IDENTIFICATION OF ISSUES

To assist the discussion of future trends Mr. Mondello was asked to
further elaborate on the ongoing ASPRS study, which is available at
www.asprs.org. The study is researching commercial, educational and
government uses of CRS over the next ten years. The study addresses how
end user requirements match needs within the industry. The effects of
the September 11 attacks and resultant new user requirements are being
assessed along with the balance between government and commercial
interests. In considering issues for the future the Committee was urged
to include additional technologies such as LIDAR and hyperspectral
imaging in its deliberations

Coordinating input from the Committee to NOAA for the ongoing White
House Review of Space Policy was identified as a priority because the
White House Review is at an advanced stage. A closed OSTP briefing on
the W.H. Review would be arranged for Committee members in the near
future.

As the result of a wide-ranging discussion, the Committee agreed to
include on the agenda for the next meeting:

Briefings:

A full briefing on the ASPRS Study

Information on Current Foreign competition

Licensing procedures

Government policy on CRS in other government agencies

(including their contributions to the interagency review process)

OMB policy briefing

Senate staff report on the Civil Agency use of CRS products and services
in Civil Agencies study of Information on Critical technologies

Overview of the Rumsfeld, National Reconnaissance Office, and NIMA
studies

COMMITTEE WORKPLAN AND SCHEDULE

Arrangements will be made in the immediate future for a briefing on the
White House Space Policy Review.

Three Working Groups will be established to consider:

Licensing and the Licensing process

Competitiveness

National Security

Terms of Reference will be devised for the Working Groups and Committee
members will identify the Working Groups on which they wish to serve.

The second meeting of ACCRES will be a one day meeting to be held in the
Washington, DC area, during early January, 2003. The specific date and
location will be announced later.