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[House Report 114-796]
[From the U.S. Government Publishing Office]

114th Congress }                                             { Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                             { 114-796

======================================================================
 
                 COMMERCIAL REMOTE SENSING ACT OF 2015

                                _______
                                

 September 28, 2016.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

     Mr. Smith of Texas, from the Committee on Science, Space, and 
                  Technology, submitted the following

                              R E P O R T

                        [To accompany H.R. 2261]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science, Space, and Technology, to whom 
was referred the bill (H.R. 2261) to facilitate the continued 
development of the commercial remote sensing industry and 
protect national security, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     2
Section-by-Section...............................................     4
Explanation of Amendments........................................     5
Committee Consideration..........................................     5
Application of Law to the Legislative Branch.....................     5
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     5
Statement of General Performance Goals and Objectives............     5
Duplication of Federal Programs..................................     5
Disclosure of Directed Rule Makings..............................     5
Federal Advisory Committee Act...................................     5
Unfunded Mandate Statement.......................................     6
Earmark Identification...........................................     6
Committee Estimate...............................................     6
Budget Authority and Congressional Budget Office Cost Estimate...     6
Changes in Existing Law Made by the Bill as Reported.............     7

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Commercial Remote Sensing Act of 
2015''.

SEC. 2. ANNUAL REPORTING.

  (a) In General.--Subchapter III of chapter 601 of title 51, United 
States Code, is amended by adding at the end the following:

``Sec. 60126. Annual reporting

  ``The Secretary shall provide a report to the Committee on Science, 
Space, and Technology of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate not later than 
180 days after the date of enactment of the Commercial Remote Sensing 
Act of 2015 and annually thereafter on--
          ``(1) the Secretary's implementation of section 60121, 
        including--
                  ``(A) a list of all applications received in the 
                previous calendar year;
                  ``(B) a list of all applications approved;
                  ``(C) a list of all applications denied;
                  ``(D) a list of all applications that required 
                additional information; and
                  ``(E) a list of all applications whose disposition 
                exceeded the 120 day deadline established in section 
                60121(c), the total days overdue for applications that 
                exceeded such deadline, and an explanation for the 
                delay;
          ``(2) all notifications and information provided to the 
        Secretary pursuant to section 60122; and
          ``(3) all actions taken by the Secretary under the 
        administrative authority granted by section 60123(a)(4), (5), 
        and (6).''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 601 of such title is amended by inserting after the item 
relating to section 60125 the following new item:

``60126. Annual reporting.''.

SEC. 3. STATUTORY UPDATE REPORT.

  Not later than 1 year after the date of enactment of this Act, the 
Secretary, in consultation with other appropriate Federal agencies and 
the National Oceanic and Atmospheric Administration's Advisory 
Committee on Commercial Remote Sensing, shall report to the Committee 
on Science, Space, and Technology of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate on 
statutory updates necessary to protect national security, protect 
privacy (which is not to be taken as altering any condition or 
standards for licensing), protect the United States industrial base, 
and reflect the current state of the art of remote sensing systems, 
instruments, or technologies.

                     Committee Statement and Views

                          PURPOSE AND SUMMARY

    The purpose of H.R. 2261, the ``Commercial Remote Sensing 
Act of 2015,'' is to facilitate the increasing growth of the 
private space-based remote sensing industry while protecting 
national security and maintaining the United States' status as 
a leader in the development and operation of remote sensing 
technologies.

                  BACKGROUND AND NEED FOR LEGISLATION

    The U.S. private space-based remote sensing industry is 
experiencing unprecedented growth. Technological developments 
are allowing for greater sensing capabilities, on smaller 
platforms, with less cost. New innovative business models use 
space-based data as part of the larger data fusion products and 
services industry. The Federal regulatory agency responsible 
for authorizing and supervising these activities has 
experienced significant growth in the number of license 
applicants and regulatory actions. From 1996 to 2010, NOAA's 
Office of Commercial Remote Sensing and Regulatory Affairs 
processed 26 licenses. From 2010 through 2015, 45 licenses have 
been processed, with 35 licenses processed since 2013 and nine 
additional licenses being processed at the time of this report. 
In addition, regulatory compliance oversight requires annual 
inspections to licensee ground stations and other facilities 
and the number of annual inspections performed has been 
increasing as the number of licensees has increased.
    The last time Congress updated the legislation governing 
these regulatory responsibilities was in 1998. The Committee 
has been involved with this process going back to 1992 when 
Congress passed the Land Remote Sensing Act which created this 
structure. There is a need to address new and emerging issues 
by strengthening Congressional oversight and reinforcing that 
the federal government should meet this increasing demand while 
protecting national security and maintaining the United States' 
status as a leader in the development and operation of remote 
sensing technologies.

                          LEGISLATIVE HISTORY

    During the 113th and 114th Congresses, the House Committee 
on Science, Space, and Technology held 14 hearings and five 
markups relevant to commercial space initiatives. Three of 
those Committee proceedings were relevant to this legislation.
    On November 20, 2013, the Subcommittee on Space held a 
hearing titled ``Commercial Space.'' The hearing examined ways 
in which companies are utilizing federal support and government 
policies to grow their commercial businesses in space launch, 
communications, GPS, remote sensing, weather monitoring, 
suborbital tourism and science experimentation, and human 
spaceflight. The witnesses addressed what government policies 
would be helpful to the U.S. commercial space industry. The 
first witness panel consisted of the Honorable Kevin McCarthy, 
Majority Whip of the U.S. House of Representatives. The second 
panel consisted of: Ms. Patricia Cooper, President of the 
Satellite Industry Association; Mr. Stuart Witt, CEO and 
General Manager of the Mojave Air and Space Port; and Dennis 
Tito, Chairman of the Inspiration Mars Foundation.
    On December 11, 2013, the Committee on Science, Space, and 
Technology met to consider H.R. 2413, the Weather Forecasting 
Improvement Act of 2013. This measure contained provisions 
regarding public safety and commercial satellites.
    On February 12, 2015 the Environment and Oversight 
Subcommittees held a joint hearing titled ``Bridging the Gap: 
America's Weather Satellites and Weather Forecasting.'' The 
purpose of the hearing was to provide an update of the 
operations and development of National Oceanic and Atmospheric 
Administration's polar-orbiting and geostationary weather 
satellite programs and discuss recent Government Accountability 
Office reports on the two programs. In addition, the hearing 
discussed the use of satellite data in operational and research 
weather models and prediction methods. The Subcommittees 
received testimony from Mr. David Powner, Director, Information 
Technology Management Issues, Government Accountability Office; 
Dr. Stephen Volz, Assistant Administrator, National 
Environmental Satellite, Data, and Information Services, 
National Oceanic and Atmospheric Administration; and Mr. Steven 
Clarke, Director, Joint Agency Satellite Division, National 
Aeronautics and Space Administration. The Subcommittees were 
also joined for questioning by Dr. Alexander MacDonald, 
President, American Meteorological Society; Director, Earth 
System Research Laboratory, National Oceanic and Atmospheric 
Administration; and Chief Science Advisor, Office of Oceanic 
and Atmospheric Research, National Oceanic and Atmospheric 
Administration; and Mr. John Murphy, Director, Office of 
Science and Technology, National Weather Service, National 
Oceanic and Atmospheric Administration.

                           Section-by-Section

Sec. 1. Short title

    Titles the Act the ``Commercial Remote Sensing Act of 
2015.''

Sec. 2. Annual reporting

    This section adds to Title 51 of U.S. Code by directing the 
Secretary of Commerce to provide a report to Congress on the 
Secretary's implementation of section 60121 of Title 51, U.S. 
Code, which authorizes the Secretary to license private sector 
parties to operate private remote sensing space systems.
    This report will provide Congress with the information it 
needs to ensure the agency is utilizing its existing 
authorities appropriately and whether it needs to update its 
policies and procedures to reflect the ever-changing 
technological landscape.

Meeting statutory deadlines

    Pursuant to 51 U.S.C. 60121(c), ``the Secretary shall 
review any application and make a determination thereon within 
120 days of the receipt of such application. If final action 
has not occurred within such time, the Secretary shall inform 
the application of any pending issues and of actions required 
to resolve them.'' The Committee is concerned that the 
Secretary of Commerce's ability to meet this statutory deadline 
for adjudicating license applications, particularly given 
increasing licensing and oversight demands. This report 
requires the Secretary to inform Congress of all license 
applications whose disposition exceeded the 120 day deadline 
established in 60121(c).''

Sec. 3. Statutory update report

    This section directs the Secretary, in consultation with 
other appropriate Federal agencies and the National Oceanic and 
Atmospheric Administration's Advisory Committee on Commercial 
Remote Sensing, to report to Congress on statutory updates 
necessary to protect national security, protect privacy (which 
is not to be taken as altering any condition or standard for 
licensing), protect the U.S. industrial base, and reflect the 
current state of the art of remote sensing systems, 
instruments, or technologies.

Protection of privacy

    It is not the intent of the Committee for this reporting 
requirement to add any additional regulatory authority to the 
Secretary. Specifically, this reporting requirement shall not 
be interpreted as imbuing upon the Secretary the authority to 
take into account protection of privacy in the regulation of 
private sector space-based remote sensing activities.

                       Explanation of Amendments

    During the Science, Space, and Technology Committee's 
markup of this legislation, one amendment to the bill was 
considered and approved by voice vote. The amendment, offered 
by Representative Alan Grayson, adds to the information to be 
included in the report on necessary statutory updates.

                        Committee Consideration

    On May 13, 2015, the Committee met in open session and 
ordered reported favorably the bill, H.R. 2261, as amended, by 
voice vote, a quorum being present.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill facilitates the continued development of the 
commercial remote sensing industry. As such this bill does not 
relate to employment or access to public services and 
accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    H.R. 2261, the Commercial Remote Sensing Act of 2015, would 
facilitate the continued development of the commercial remote 
sensing industry.

                    Duplication of Federal Programs

    No provision of H.R. 2261 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting H.R. 2261 does not 
direct the completion of any specific rule makings within the 
meaning of 5 U.S.C. 551.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         Earmark Identification

    H.R. 2261 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 2261. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 2261 from the Director of 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 19, 2015.
Hon. Lamar Smith,
Chairman, Committee on Science, Space, and Technology,
U.S. House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2261, the 
Commercial Remote Sensing Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Kathleen 
Gramp.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 2261--Commercial Remote Sensing Act of 2015

    Summary: H.R. 2261 would direct the Secretary of Commerce 
to submit annual reports on the status of private-sector 
applications for remote sensing technologies. The Secretary 
also would be required to submit a report to Congressional 
committees on any statutory changes that may be necessary to 
protect and promote national interests in such systems.
    Assuming the availability of appropriated funds, CBO 
estimates that implementing H.R. 2261 would cost $3 million 
over the 2016-2020 period. Pay-as-you-go procedures do not 
apply to this legislation because it would not affect direct 
spending or revenues.
    H.R. 2261 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 2261 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and the environment).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                              --------------------------------------------------
                                                                2016    2017    2018    2019    2020   2016-2020
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level................................       2       *       *       *       *         3
Estimated Outlays............................................       1       1       *       *       *         3
----------------------------------------------------------------------------------------------------------------
Note: * = Less than $500,000.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
2261 will be enacted near the end of fiscal year 2015, that the 
necessary amounts will be appropriated at or near the beginning 
of each year, and that funds will be spent at historical rates 
for such activities.
    Based on information from the Department of Commerce, CBO 
estimates that completing the bill's required study on a 
statutory framework for commercial remote sensing operations 
would cost $1.8 million because of the technical and legal 
complexity of these systems. Developing data and annual reports 
on the disposition of commercial licenses for remote sensing 
would cost $250,000 a year, CBO estimates.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: H.R. 2261 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal costs: Kathleen Gramp; impact 
on state, local, and tribal governments: Jon Sperl; impact on 
the private sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Assistant Director for 
Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

TITLE 51, UNITED STATES CODE

           *       *       *       *       *       *       *

SUBTITLE VI--EARTH OBSERVATIONS

           *       *       *       *       *       *       *

                CHAPTER 601--LAND REMOTE SENSING POLICY

                          SUBCHAPTER i--general

Sec.
60101. Definitions.
     * * * * * * *

    SUBCHAPTER iii--licensing of private remote sensing space systems

60121. General licensing authority.
     * * * * * * *
60126. Annual reporting.

           *       *       *       *       *       *       *

SUBCHAPTER III--LICENSING OF PRIVATE REMOTE SENSING SPACE SYSTEMS

           *       *       *       *       *       *       *

Sec. 60126. Annual reporting

  The Secretary shall provide a report to the Committee on 
Science, Space, and Technology of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of 
the Senate not later than 180 days after the date of enactment 
of the Commercial Remote Sensing Act of 2015 and annually 
thereafter on--
          (1) the Secretary's implementation of section 60121, 
        including--
                  (A) a list of all applications received in 
                the previous calendar year;
                  (B) a list of all applications approved;
                  (C) a list of all applications denied;
                  (D) a list of all applications that required 
                additional information; and
                  (E) a list of all applications whose 
                disposition exceeded the 120 day deadline 
                established in section 60121(c), the total days 
                overdue for applications that exceeded such 
                deadline, and an explanation for the delay;
          (2) all notifications and information provided to the 
        Secretary pursuant to section 60122; and
          (3) all actions taken by the Secretary under the 
        administrative authority granted by section 
        60123(a)(4), (5), and (6).

           *       *       *       *       *       *       *

                                  [all]
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