```

[House Report 115-789]
[From the U.S. Government Publishing Office]

115th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {       115-789

======================================================================

 
                  COMMERCIAL SPACE SUPPORT VEHICLE ACT

                                _______
                                

 June 27, 2018.--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. 5346]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Science, Space, and Technology, to whom 
was referred the bill (H.R. 5346) to amend title 51, United 
States Code, to provide for licenses and experimental permits 
for space support vehicles, and for other purposes, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill 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......................................................     6
Statement of General Performance Goals and Objectives............     6
Duplication of Federal Programs..................................     6
Disclosure of Directed Rule Makings..............................     6
Federal Advisory Committee Act...................................     6
Unfunded Mandate Statement.......................................     6
Earmark Identification...........................................     6
Committee Estimate...............................................     7
Budget Authority and Congressional Budget Office Cost Estimate...     7
Changes in Existing Law Made by the Bill as Reported.............     8

                     Committee Statement and Views

                          PURPOSE AND SUMMARY

    The purpose of H.R. 5346, the ``Commercial Space Support 
Vehicle Act,'' is to provide for licenses and experimental 
permits for space support vehicles.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Commercial Space Launch Competitiveness Act (CSLCA, 
P.L. 114-90), Section 105, required the Secretary of 
Transportation to prepare a report on approaches for 
streamlining the licensing and permitting process of launch 
vehicles, reentry vehicles, or components of launch or reentry 
vehicles, (also referred to as hybrid vehicles) to enable non-
launch flight operations related to space transportation. 
Informally, the Federal Aviation Administration (FAA) uses the 
term hybrid vehicle to mean a launch or reentry vehicle that 
may also be used for non-launch non-reentry operations. 
Congressional Report 108-429 notes that, ``Hybrid vehicles are 
vehicles that have some of the characteristics of aircraft and 
some of the characteristics of launch vehicles.''
    The Section 105 report was transmitted to Congress on June 
29, 2017. According to the report, a statutory or regulatory 
change would be needed to allow companies to utilize hybrid 
vehicles as space support vehicles. The report concluded that 
the ``option of having a single statutory regime and regulatory 
office oversee a demonstrated commercial space program 
throughout its operational lifecycle would allow consistent 
application of regulatory philosophy and safety oversight and 
be more efficient and cost effective for the launch operator as 
well as the licensing agency. For an evolving industry, a 
regulatory environment that can adjust to accommodate changes 
would allow for more flexible and more responsive oversight.''
    The CLSCA also required the Government Accountability 
Office (GAO) (GAO-17-100: Published: Nov 25, 2016) to review 
the uses for space support vehicles and services and any 
barriers to their use. The GAO found that the standard aircraft 
certification process is lengthy, is not designed for unique, 
single-production aircraft, and does not allow companies to 
receive compensation for carrying people or property. The GAO 
also found that some of the companies interviewed have training 
operations in other countries where they can receive payment 
for the activity and are delaying investments in space support 
vehicles due to regulatory uncertainty. The GAO recommended 
that the FAA examine and document whether the FAA's current 
regulatory framework is appropriate for space support vehicles 
and, if not, suggest legislative or regulatory changes, or 
both, as applicable.

                          LEGISLATIVE HISTORY

    During the 113th, 114th and 115th Congresses, the House 
Committee on Science, Space, and Technology held seven hearings 
and two markups relevant to this bill.
    On Wednesday, November 20, 2013, the Subcommittee on Space 
held a hearing titled, ``Commercial Space,'' to examine ways in 
which companies are utilizing federal support and government 
policies to grow their commercial business in space launch, 
communications, GPS, remote sensing, weather monitoring, 
suborbital tourism, science experimentation, and human 
spaceflight. The witnesses discussed policies contained in H.R. 
3038, the Suborbital and Orbital Advancement and Regulatory 
Streamlining (SOARS) Act. The Subcommittee heard testimony from 
the Honorable Kevin McCarthy, Member and Majority Whip of the 
U.S. House of Representatives; Ms. Patricia Cooper, President 
of the Satellite Industry Association; Mr. Stuart Witt, Chief 
Executive Officer and General Manager of the Mojave Air and 
Space Port; and Mr. Dennis Tito, Chairman of the Inspiration 
Mars Foundation.
    On Tuesday, February 4, 2014, the Subcommittee on Space 
held a hearing titled, ``Necessary Updates to the Commercial 
Space Launch Act,'' to discuss the growth of the commercial 
space industry since the passage of the Commercial Space Launch 
Act (CSLA) of 1984. The CSLA provided authority to the FAA to 
license launches and indemnify launch providers from their-
party claims should an accident occur. The law also provides a 
framework for the FAA's regulatory authority. The hearing 
examined the various changes in the industry and what, if any, 
accompanying changes to the CSLA may be needed going forward. 
The Subcommittee heard testimony from Dr. George Nield, 
Associate Administrator for Commercial Space Transportation at 
the Federal Aviation Administration; Dr. Alicia Cackley, 
Director of Financial Markets and Community Investment Team at 
the Government Accountability Office; and Dr. Henry Hertzfeld, 
Research Professor of Space Policy and International Affairs at 
the Elliot School of International Affairs at George Washington 
University.
    On May 12, 2015, the Committee met to consider H.R. 2262, 
the Commercial Space Launch Competitiveness Act. H.R. 2262 
facilitates a pro-growth environment for the developing 
commercial space industry by encouraging private sector 
investment and creating more stable and predictable regulatory 
conditions. Several reporting requirements were due under this 
Act regarding licensing of space vehicles. This Act became law 
on November 25, 2015 (P.L. 114-90).
    On Tuesday, April 19, 2016, the Subcommittee on Space held 
a hearing titled, ``The Commercial Space Launch Industry: Small 
Satellite Opportunities and Challenges,'' to examine the 
current state of the small satellite commercial launch 
industry. The hearing highlighted the contributions and impacts 
of the commercial space launch industry, as well as NASA's 
Launch Services Program for the acquisition and program 
management of expendable launch vehicle (ELV) missions. Service 
providers and small satellite launch vehicles, including the 
use of reusable vehicles, were also discussed. The Subcommittee 
heard testimony from Mr. Elliot Pulham, Chief Executive Officer 
of the Space Foundation; and Mr. Eric Stallmer, President of 
the Commercial Spaceflight Federation.
    On Wednesday, March 8, 2017, the Subcommittee on Space held 
a hearing titled, ``Regulating Space: Innovation, Liberty, and 
International Obligations,'' to examine U.S. international 
obligations in light of new and innovative space activities. 
The hearing reviewed authorization and continuing supervision 
of non-governmental activities in space per the Outer Space 
Treaty. The licensing of launch and re-entry vehicles and sites 
by the Federal Aviation Administration (FAA) was also 
discussed. The Subcommittee heard testimony from Ms. Laura 
Montgomery, Attorney and Sole Proprietor of Ground Based Space 
Matters, LLC; Dr. Eli Dourado, Senior Research Fellow and 
Director of the Technology Policy Program at the Mercatus 
Center at George Mason University; Mr. Doug Loverro, Former 
Deputy Assistant Secretary of Defense for Space Policy; Mr. 
Dennis J. Burnett, Adjunct Professor of Law at the University 
of Nebraska-Lincoln College of Law; and Dr. Henry B. Hogue, 
Specialist in American National Government at the Congressional 
Research Service.
    On June 29, 2017, the Committee received from the 
Department of Transportation the report due pursuant to section 
105 of H.R. 2262, the Commercial Space Launch Competitiveness 
Act, regarding the licensing and permitting process of launch 
vehicles, reentry vehicles, or components of launch or reentry 
vehicles, to enable non-launch flight operations related to 
space transportation. The report included approaches to improve 
efficiency, reduce unnecessary costs, resolve inconsistencies, 
remove duplication, and minimize unwarranted constraints.
    On October 20, 2017, the Committee received from the 
Department of Transportation and NASA the report due pursuant 
to section 113 of H.R. 2262, the Commercial Space Launch 
Competitiveness Act, regarding the streamlining of commercial 
space launch activities. The report included a description of 
the process for the application and approval of a permit or 
license, current efforts to coordinate across executive 
agencies, and recommendations for legislation to improve 
efficiency in the licensing of space launch activities.
    On March 20, 2018, H.R. 5346 was introduced in the House by 
Representative Bill Posey of Florida.
    On March 22, 2018, the Committee on Science, Space, and 
Technology met to order H.R. 5346 reported by voice vote.

                            COMMITTEE VIEWS

    The Committee is aware of alternative proposals to 
establish space support vehicle or similar authorities outside 
of Title 51 authorities and within existing aviation 
authorities under Title 49. After extensive discussions with 
stakeholders, and on the basis of testimony provided in 
hearings, the Committee concludes that establishing a carve out 
under Title 49 for aircraft that operate under special 
airworthiness certificates in the experimental category is not 
in the best interests of the aviation or space community. The 
Committee firmly believes that H.R. 5346 is the best policy to 
facilitate the development of commercial space support flights.

                           Section-by-Section

Section 1. Short title

    Commercial Space Support Vehicle Act.

Section 2. Definitions

    This section amends title 51 to include definitions for 
``space support flight'' and ``space support vehicle.''

Section 3. Licensing of space support flights

    This section amends section 50904 of title 51 to give the 
Secretary of Transportation the authority to license space 
support flights.

Section 4. Experimental permits for space support flights

    This section amends section 50906 of title 51 to include 
space support vehicles, as well as prohibit reusable suborbital 
rockets and reusable launch vehicles operating under an 
experimental permit from carrying any property or human for 
compensation or hire.

Section 5. Communication and transparency

    This section informs the Secretary to discuss the 
regulatory approach with the commercial space industry prior to 
issuing the notice of proposed rulemaking.

Section 6. Applicability

    This section allows but does not require the Secretary to 
develop regulations for issuing licenses and permits for space 
support flights and space support vehicles by March 1, 2019, 
when the act would go into effect. The intent of this provision 
is to include the development of regulations for space support 
vehicles in the regulatory reform process that the National 
Space Council tasked the Federal Aviation Administration (FAA) 
to complete by this date.

                          DIRECTED RULEMAKINGS

    The law does not direct the Secretary of Transportation to 
promulgate a rule or regulation. This law modifies the 
Secretary of Transportation's existing licensing authority for 
space vehicle launch and re-entry to allow for the licensing of 
experimental permits for space support flights.

                          DUPLICATIVE PROGRAMS

    No provision of H.R. 5346 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.

                       Explanation of Amendments

    There were no amendments to this bill.

                        Committee Consideration

    On March 22nd, 2018, the Committee met in open session and 
ordered reported favorably the bill, H.R. 5436, by roll call 
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 provides for licenses and experimental permits for 
space support vehicles. As such, this bill does not relate to 
employment or access to public services and accommodations.
    Legislative branch employees and their families, to the 
extent that they are otherwise eligible for the benefits 
provided by this legislation, have equal access to its 
benefits.

  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

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

                    Duplication of Federal Programs

    No provision of H.R. 5346 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. 5346 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. 5346 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. 5436. 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. 5346 from the Director of 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 25, 2018.
Hon. Lamar Smith,
Chairman, Committee on Science, Space, and Technology,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5346, the 
Commercial Space Support Vehicle Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 5346--Commercial Space Support Vehicle Act

    H.R. 5346 would streamline regulatory processes for 
licensing operations of vehicles that support launches of 
commercial space vehicles. Under current law, such vehicles are 
regulated by the Federal Aviation Administration's (FAA's) 
Office of Aviation Safety; under the bill, that responsibility 
would be transferred to the FAA's Office of Commercial Space 
Transportation.
    CBO estimates that enacting H.R. 5346 would not 
significantly affect the federal budget. The bill would not 
alter the scope of the FAA's underlying responsibility to 
regulate all aspects of commercial space transportation. Using 
information from the FAA, CBO estimates that any change in 
federal costs stemming from the proposed reorganization of 
regulatory responsibilities--which would be subject to 
appropriation--would be negligible.
    Enacting H.R. 5346 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 5346 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    H.R. 5346 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Megan Carroll. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
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 (existing law 
proposed to be omitted is enclosed in black brackets, 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 V--PROGRAMS TARGETING COMMERCIAL OPPORTUNITIES

           *       *       *       *       *       *       *

CHAPTER 509--COMMERCIAL SPACE LAUNCH ACTIVITIES

           *       *       *       *       *       *       *

Sec. 50902. Definitions

  In this chapter--
          (1) ``citizen of the United States'' means--
                  (A) an individual who is a citizen of the 
                United States;
                  (B) an entity organized or existing under the 
                laws of the United States or a State; or
                  (C) an entity organized or existing under the 
                laws of a foreign country if the controlling 
                interest (as defined by the Secretary of 
                Transportation) is held by an individual or 
                entity described in subclause (A) or (B) of 
                this clause.
          (2) ``crew'' means any employee of a licensee or 
        transferee, or of a contractor or subcontractor of a 
        licensee or transferee, who performs activities in the 
        course of that employment directly relating to the 
        launch, reentry, or other operation of or in a launch 
        vehicle or reentry vehicle that carries human beings.
          (3) ``executive agency'' has the same meaning given 
        that term in section 105 of title 5.
          (4) ``government astronaut'' means an individual 
        who--
                  (A) is designated by the National Aeronautics 
                and Space Administration under section 
                20113(n);
                  (B) is carried within a launch vehicle or 
                reentry vehicle in the course of his or her 
                employment, which may include performance of 
                activities directly relating to the launch, 
                reentry, or other operation of the launch 
                vehicle or reentry vehicle; and
                  (C) is either--
                          (i) an employee of the United States 
                        Government, including the uniformed 
                        services, engaged in the performance of 
                        a Federal function under authority of 
                        law or an Executive act; or
                          (ii) an international partner 
                        astronaut.
          (5) ``international partner astronaut'' means an 
        individual designated under Article 11 of the 
        International Space Station Intergovernmental 
        Agreement, by a partner to that agreement other than 
        the United States, as qualified to serve as an 
        International Space Station crew member.
          (6) ``International Space Station Intergovernmental 
        Agreement'' means the Agreement Concerning Cooperation 
        on the International Space Station, signed at 
        Washington January 29, 1998 (TIAS 12927).
          (7) ``launch'' means to place or try to place a 
        launch vehicle or reentry vehicle and any payload or 
        human being from Earth--
                  (A) in a suborbital trajectory;
                  (B) in Earth orbit in outer space; or
                  (C) otherwise in outer space,
        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.
          (8) ``launch property'' means an item built for, or 
        used in, the launch preparation or launch of a launch 
        vehicle.
          (9) ``launch services'' means--
                  (A) activities involved in the preparation of 
                a launch vehicle, payload, crew (including crew 
                training), government astronaut, or space 
                flight participant for launch; and
                  (B) the conduct of a launch.
          (10) ``launch site'' means the location on Earth from 
        which a launch takes place (as defined in a license the 
        Secretary issues or transfers under this chapter) and 
        necessary facilities at that location.
          (11) ``launch vehicle'' means--
                  (A) a vehicle built to operate in, or place a 
                payload or human beings in, outer space; and
                  (B) a suborbital rocket.
          (12) ``obtrusive space advertising'' means 
        advertising in outer space that is capable of being 
        recognized by a human being on the surface of the Earth 
        without the aid of a telescope or other technological 
        device.
          (13) ``payload'' means an object that a person 
        undertakes to place in outer space by means of a launch 
        vehicle or reentry vehicle, including components of the 
        vehicle specifically designed or adapted for that 
        object.
          (14) except in section 50904(c), ``permit'' means an 
        experimental permit issued under section 50906.
          (15) ``person'' means an individual and an entity 
        organized or existing under the laws of a State or 
        country.
          (16) ``reenter'' and ``reentry'' mean to return or 
        attempt to return, purposefully, a reentry vehicle and 
        its payload or human beings, if any, from Earth orbit 
        or from outer space to Earth.
          (17) ``reentry services'' means--
                  (A) activities involved in the preparation of 
                a reentry vehicle and payload, crew (including 
                crew training), government astronaut, or space 
                flight participant, if any, for reentry; and
                  (B) the conduct of a reentry.
          (18) ``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).
          (19) ``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.
          (20) ``space flight participant'' means an 
        individual, who is not crew or a government astronaut, 
        carried within a launch vehicle or reentry vehicle.
                  (21) ``space support flight'' means a flight 
                in the air that is--
                          (A) not a launch or reentry; but
                          (B) related to launch or reentry 
                        services.
                  (22) ``space support vehicle'' means a 
                vehicle that is--
                          (A) a launch vehicle;
                          (B) a reentry vehicle; or
                          (C) a component of a launch or 
                        reentry vehicle.
          [(21)] (23) ``State'' means a State of the United 
        States, the District of Columbia, and a territory or 
        possession of the United States.
          [(22)] (24) unless and until regulations take effect 
        under section 50922(c)(2), ``suborbital rocket'' means 
        a vehicle, rocket-propelled in whole or in part, 
        intended for flight on a suborbital trajectory, and the 
        thrust of which is greater than its lift for the 
        majority of the rocket-powered portion of its ascent.
          [(23)] (25) ``suborbital trajectory'' means the 
        intentional flight path of a launch vehicle, reentry 
        vehicle, or any portion thereof, whose vacuum 
        instantaneous impact point does not leave the surface 
        of the Earth.
          [(24)] (26) ``third party'' means a person except--
                  (A) the United States Government or the 
                Government's contractors or subcontractors 
                involved in launch services or reentry 
                services;
                  (B) a licensee or transferee under this 
                chapter;
                  (C) a licensee's or transferee's contractors, 
                subcontractors, or customers involved in launch 
                services or reentry services;
                  (D) the customer's contractors or 
                subcontractors involved in launch services or 
                reentry services; or
                  (E) crew, government astronauts, or space 
                flight participants.
          [(25)] (27) ``United States'' means the States of the 
        United States, the District of Columbia, and the 
        territories and possessions of the United States.

           *       *       *       *       *       *       *

Sec. 50904. Restrictions on launches, operations, and reentries

  (a) Requirement.--A license issued or transferred under this 
chapter, or a permit, is required for the following:
          (1) for a person to launch a launch vehicle or to 
        operate a launch site or reentry site, or to reenter a 
        reentry vehicle, in the United States.
          (2) for a citizen of the United States (as defined in 
        section 50902(1)(A) or (B) of this title) to launch a 
        launch vehicle or to operate a launch site or reentry 
        site, or to reenter a reentry vehicle, outside the 
        United States.
          (3) for a citizen of the United States (as defined in 
        section 50902(1)(C) of this title) to launch a launch 
        vehicle or to operate a launch site or reentry site, or 
        to reenter a reentry vehicle, outside the United States 
        and outside the territory of a foreign country unless 
        there is an agreement between the United States 
        Government and the government of the foreign country 
        providing that the government of the foreign country 
        has jurisdiction over the launch or operation or 
        reentry.
          (4) for a citizen of the United States (as defined in 
        section 50902(1)(C) of this title) to launch a launch 
        vehicle or to operate a launch site or reentry site, or 
        to reenter a reentry vehicle, in the territory of a 
        foreign country if there is an agreement between the 
        United States Government and the government of the 
        foreign country providing that the United States 
        Government has jurisdiction over the launch or 
        operation or reentry.
Notwithstanding this subsection, a permit shall not authorize a 
person to operate a launch site or reentry site.
  (b) Compliance With Payload Requirements.--The holder of a 
license or permit under this chapter may launch or reenter a 
payload only if the payload complies with all requirements of 
the laws of the United States related to launching or 
reentering a payload.
  (c) Preventing Launches and Reentries.--The Secretary of 
Transportation shall establish whether all required licenses, 
authorizations, and permits required for a payload have been 
obtained. If no license, authorization, or permit is required, 
the Secretary may prevent the launch or reentry if the 
Secretary decides the launch or reentry would jeopardize the 
public health and safety, safety of property, or national 
security or foreign policy interest of the United States.
  (d) Single License or Permit.--The Secretary of 
Transportation shall ensure that only 1 license or permit is 
required from the Department of Transportation to conduct 
activities involving crew, government astronauts, or space 
flight participants, including launch and reentry, for which a 
license or permit is required under this chapter. The Secretary 
shall ensure that all Department of Transportation regulations 
relevant to the licensed or permitted activity are satisfied.
  (e) Space Support Flights.--
          (1) The Secretary of Transportation may issue or 
        transfer a license for multiple space support flights 
        of a space support vehicle to a citizen of the United 
        States, but only if such citizen holds an operator 
        license issued under this chapter for launch or reentry 
        of such space support vehicle as, or included as a 
        component of, a launch vehicle or reentry vehicle.
          (2) A licensee may only carry out a space support 
        flight of a space support vehicle under a license for 
        carrying a person or property for compensation or hire 
        if such flight lands at the same site from which the 
        vehicle took flight.

Sec. 50905. License applications and requirements

  (a) Applications.--(1) A person may apply to the Secretary of 
Transportation for a license or transfer of a license under 
this chapter in the form and way the Secretary prescribes. 
Consistent with the public health and safety, safety of 
property, and national security and foreign policy interests of 
the United States, the Secretary, not later than 180 days after 
accepting an application in accordance with criteria 
established pursuant to subsection (b)(2)(D), shall issue or 
transfer a license if the Secretary decides in writing that the 
applicant complies, and will continue to comply, with this 
chapter and regulations prescribed under this chapter. The 
Secretary shall inform the applicant of any pending issue and 
action required to resolve the issue if the Secretary has not 
made a decision not later than 120 days after accepting an 
application in accordance with criteria established pursuant to 
subsection (b)(2)(D). 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 the Secretary has not taken action on a license 
application 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 (including approval procedures for the purpose of 
protecting the health and safety of crew, government 
astronauts, and space flight participants, to the extent 
permitted by subsections (b) and (c)) that may be used in 
conducting licensed commercial space launch or reentry 
activities.
  (b) Requirements.--(1) Except as provided in this subsection, 
all requirements of the laws of the United States applicable to 
the launch of a launch vehicle or the operation of a launch 
site or a reentry site, or the reentry of a reentry vehicle, 
are requirements for a license or permit under this chapter.
  (2) The Secretary may prescribe--
          (A) any term necessary to ensure compliance with this 
        chapter, including on-site verification that a launch, 
        operation, or reentry complies with representations 
        stated in the application;
          (B) any additional requirement necessary to protect 
        the public health and safety, safety of property, 
        national security interests, and foreign policy 
        interests of the United States;
          (C) by regulation that a requirement of a law of the 
        United States not be a requirement for a license or 
        permit if the Secretary, after consulting with the head 
        of the appropriate executive agency, decides that the 
        requirement is not necessary to protect the public 
        health and safety, safety of property, and national 
        security and foreign policy interests of the United 
        States;
          (D) additional license requirements, for a launch 
        vehicle carrying a human being for compensation or 
        hire, necessary to protect the health and safety of 
        crew, government astronauts, or space flight 
        participants, only if such requirements are imposed 
        pursuant to final regulations issued in accordance with 
        subsection (c); and
          (E) regulations establishing criteria for accepting 
        or rejecting an application for a license or permit 
        under this chapter within 60 days after receipt of such 
        application.
  (3) The Secretary may waive a requirement, including the 
requirement to obtain a license, for an individual applicant if 
the Secretary decides that the waiver is in the public interest 
and will not jeopardize the public health and safety, safety of 
property, and national security and foreign policy interests of 
the United States. The Secretary may not grant a waiver under 
this paragraph that would permit the launch or reentry of a 
launch vehicle or a reentry vehicle, or the operation of a 
space support vehicle, without a license or permit if a human 
being will be on board.
  (4) The holder of a license or a permit under this chapter 
may launch or reenter crew only if--
          (A) the crew has received training and has satisfied 
        medical or other standards specified in the license or 
        permit in accordance with regulations promulgated by 
        the Secretary;
          (B) the holder of the license or permit has informed 
        any individual serving as crew in writing, prior to 
        executing any contract or other arrangement to employ 
        that individual (or, in the case of an individual 
        already employed as of the date of enactment of the 
        Commercial Space Launch Amendments Act of 2004, as 
        early as possible, but in any event prior to any launch 
        in which the individual will participate as crew), that 
        the United States Government has not certified the 
        launch vehicle as safe for carrying crew or space 
        flight participants; and
          (C) the holder of the license or permit and crew have 
        complied with all requirements of the laws of the 
        United States that apply to crew.
  (5) The holder of a license or a permit under this chapter 
may launch or reenter a space flight participant only if--
          (A) in accordance with regulations promulgated by the 
        Secretary, the holder of the license or permit has 
        informed the space flight participant in writing about 
        the risks of the launch and reentry, including the 
        safety record of the launch or reentry vehicle type, 
        and the Secretary has informed the space flight 
        participant in writing of any relevant information 
        related to risk or probable loss during each phase of 
        flight gathered by the Secretary in making the 
        determination required by section 50914(a)(2) and (c);
          (B) the holder of the license or permit has informed 
        any space flight participant in writing, prior to 
        receiving any compensation from that space flight 
        participant or (in the case of a space flight 
        participant not providing compensation) otherwise 
        concluding any agreement to fly that space flight 
        participant, that the United States Government has not 
        certified the launch vehicle as safe for carrying crew 
        or space flight participants;
          (C) in accordance with regulations promulgated by the 
        Secretary, the space flight participant has provided 
        written informed consent to participate in the launch 
        and reentry and written certification of compliance 
        with any regulations promulgated under paragraph 
        (6)(A); and
          (D) the holder of the license or permit has complied 
        with any regulations promulgated by the Secretary 
        pursuant to paragraph (6).
  (6)(A) The Secretary may issue regulations requiring space 
flight participants to undergo an appropriate physical 
examination prior to a launch or reentry under this chapter. 
This subparagraph shall cease to be in effect three years after 
the date of enactment of the Commercial Space Launch Amendments 
Act of 2004.
          (B) The Secretary may issue additional regulations 
        setting reasonable requirements for space flight 
        participants, including medical and training 
        requirements. Such regulations shall not be effective 
        before the expiration of 3 years after the date of 
        enactment of the Commercial Space Launch Amendments Act 
        of 2004.
  (c) Safety Regulations.--
          (1) In general.--The Secretary may issue regulations 
        governing the design or operation of a launch vehicle 
        to protect the health and safety of crew, government 
        astronauts, and space flight participants.
          (2) Regulations.--Regulations issued under this 
        subsection shall--
                  (A) describe how such regulations would be 
                applied when the Secretary is determining 
                whether to issue a license under this chapter;
                  (B) apply only to launches in which a vehicle 
                will be carrying a human being for compensation 
                or hire;
                  (C) be limited to restricting or prohibiting 
                design features or operating practices that--
                          (i) have resulted in a serious or 
                        fatal injury (as defined in 49 CFR 830, 
                        as in effect on November 10, 2004) to 
                        crew, government astronauts, or space 
                        flight participants during a licensed 
                        or permitted commercial human space 
                        flight; or
                          (ii) contributed to an unplanned 
                        event or series of events during a 
                        licensed or permitted commercial human 
                        space flight that posed a high risk of 
                        causing a serious or fatal injury (as 
                        defined in 49 CFR 830, as in effect on 
                        November 10, 2004) to crew, government 
                        astronauts, or space flight 
                        participants; and
                  (D) be issued with a description of the 
                instance or instances when the design feature 
                or operating practice being restricted or 
                prohibited contributed to a result or event 
                described in subparagraph (C).
          (3) Facilitation of standards.--The Secretary shall 
        continue to work with the commercial space sector, 
        including the Commercial Space Transportation Advisory 
        Committee, or its successor organization, to facilitate 
        the development of voluntary industry consensus 
        standards based on recommended best practices to 
        improve the safety of crew, government astronauts, and 
        space flight participants as the commercial space 
        sector continues to mature.
          (4) Communication and transparency.--Nothing in this 
        subsection shall be construed to limit the authority of 
        the Secretary to discuss potential regulatory 
        approaches, potential performance standards, or any 
        other topic related to this subsection with the 
        commercial space industry, including observations, 
        findings, and recommendations from the Commercial Space 
        Transportation Advisory Committee, or its successor 
        organization, prior to the issuance of a notice of 
        proposed rulemaking. Such discussions shall not be 
        construed to permit the Secretary to promulgate 
        industry regulations except as otherwise provided in 
        this section.
          (5) Interim voluntary industry consensus standards 
        reports.--
                  (A) In general.--Not later than December 31, 
                2016, and every 30 months thereafter until 
                December 31, 2021, the Secretary, in 
                consultation and coordination with the 
                commercial space sector, including the 
                Commercial Space Transportation Advisory 
                Committee, or its successor organization, shall 
                submit to the Committee on Commerce, Science, 
                and Transportation of the Senate and the 
                Committee on Science, Space, and Technology of 
                the House of Representatives a report on the 
                progress of the commercial space transportation 
                industry in developing voluntary industry 
                consensus standards that promote best practices 
                to improve industry safety.
                  (B) Contents.--The report shall include, at a 
                minimum--
                          (i) any voluntary industry consensus 
                        standards that have been accepted by 
                        the industry at large;
                          (ii) the identification of areas that 
                        have the potential to become voluntary 
                        industry consensus standards that are 
                        currently under consideration by the 
                        industry at large;
                          (iii) an assessment from the 
                        Secretary on the general progress of 
                        the industry in adopting voluntary 
                        industry consensus standards;
                          (iv) any lessons learned about 
                        voluntary industry consensus standards, 
                        best practices, and commercial space 
                        launch operations;
                          (v) any lessons learned associated 
                        with the development, potential 
                        application, and acceptance of 
                        voluntary industry consensus standards, 
                        best practices, and commercial space 
                        launch operations; and
                          (vi) recommendations, findings, or 
                        observations from the Commercial Space 
                        Transportation Advisory Committee, or 
                        its successor organization, on the 
                        progress of the industry in developing 
                        voluntary industry consensus standards 
                        that promote best practices to improve 
                        industry safety.
          (6) Report.--Not later than 270 days after the date 
        of enactment of the SPACE Act of 2015, the Secretary, 
        in consultation and coordination with the commercial 
        space sector, including the Commercial Space 
        Transportation Advisory Committee, or its successor 
        organization, shall submit to the Committee on 
        Commerce, Science, and Transportation of the Senate and 
        the Committee on Science, Space, and Technology of the 
        House of Representatives a report specifying key 
        industry metrics that might indicate readiness of the 
        commercial space sector and the Department of 
        Transportation to transition to a safety framework that 
        may include regulations under paragraph (9) that 
        considers space flight participant, government 
        astronaut, and crew safety.
          (7) Reports.--Not later than March 31 of each of 2018 
        and 2022, the Secretary, in consultation and 
        coordination with the commercial space sector, 
        including the Commercial Space Transportation Advisory 
        Committee, or its successor organization, shall submit 
        to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on 
        Science, Space, and Technology of the House of 
        Representatives a report that identifies the 
        activities, described in this subsection and subsection 
        (d) most appropriate for a new safety framework that 
        may include regulatory action, if any, and a proposed 
        transition plan for such safety framework.
          (8) Independent review.--Not later than December 31, 
        2022, an independent systems engineering and technical 
        assistance organization or standards development 
        organization contracted by the Secretary shall submit 
        to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on 
        Science, Space, and Technology of the House of 
        Representatives an assessment of the readiness of the 
        commercial space industry and the Federal Government to 
        transition to a safety framework that may include 
        regulations. As part of the review, the contracted 
        organization shall evaluate--
                  (A) the progress of the commercial space 
                industry in adopting voluntary industry 
                consensus standards as reported by the 
                Secretary in the interim assessments included 
                in the reports under paragraph (5);
                  (B) the progress of the commercial space 
                industry toward meeting the key industry 
                metrics identified by the report under 
                paragraph (6), including the knowledge and 
                operational experience obtained by the 
                commercial space industry while providing 
                services for compensation or hire; and
                  (C) whether the areas identified in the 
                reports under paragraph (5) are appropriate for 
                regulatory action, or further development of 
                voluntary industry consensus standards, 
                considering the progress evaluated in 
                subparagraphs (A) and (B) of this paragraph.
          (9) Learning period.--Beginning on October 1, 2023, 
        the Secretary may propose regulations under this 
        subsection without regard to subparagraphs (C) and (D) 
        of paragraph (2). The development of any such 
        regulations shall take into consideration the evolving 
        standards of the commercial space flight industry as 
        identified in the reports published under paragraphs 
        (5), (6), and (7).
          (10) Rule of construction.--Nothing in this 
        subsection shall be construed to limit the authority of 
        the Secretary to issue requirements or regulations to 
        protect the public health and safety, safety of 
        property, national security interests, and foreign 
        policy interests of the United States.
  (d) Procedures and Timetables.--The Secretary shall establish 
procedures and timetables that expedite review of a license or 
permit application and reduce the regulatory burden for an 
applicant.

Sec. 50906. Experimental permits

  (a) A person may apply to the Secretary of Transportation for 
an experimental permit under this section in the form and 
manner the Secretary prescribes. Consistent with the protection 
of the public health and safety, safety of property, and 
national security and foreign policy interests of the United 
States, the Secretary, not later than 120 days after receiving 
an application pursuant to this section, shall issue a permit 
if the Secretary decides in writing that the applicant 
complies, and will continue to comply, with this chapter and 
regulations prescribed under this chapter. The Secretary shall 
inform the applicant of any pending issue and action required 
to resolve the issue if the Secretary has not made a decision 
not later than 90 days after receiving an application. The 
Secretary shall transmit to the Committee on Science of the 
House of Representatives and Committee on Commerce, Science, 
and Transportation of the Senate a written notice not later 
than 15 days after any occurrence when the Secretary has failed 
to act on a permit within the deadline established by this 
section.
  (b) In carrying out subsection (a), 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 commercial space 
launch or reentry activities pursuant to a permit.
  (c) In order to encourage the development of a commercial 
space flight industry, the Secretary may when issuing permits 
use the authority granted under section 50905(b)(2)(C).
  [(d) The Secretary may issue a permit only for reusable 
suborbital rockets or reusable launch vehicles that will be 
launched into a suborbital trajectory or reentered under that 
permit solely for--
          [(1) research and development to test design 
        concepts, equipment, or operating techniques;
          [(2) showing compliance with requirements as part of 
        the process for obtaining a license under this chapter; 
        or
          [(3) crew training for a launch or reentry using the 
        design of the rocket or vehicle for which the permit 
        would be issued.]
  (d) The Secretary may issue a permit only for--
          (1) reusable suborbital rockets or reusable launch 
        vehicles that will be launched into a suborbital 
        trajectory or reentered under that permit solely for--
                  (A) research and development to test design 
                concepts, equipment, or operating techniques;
                  (B) showing compliance with requirements as 
                part of the process for obtaining a license for 
                launch or reentry under this chapter; or
                  (C) crew training for a launch or reentry 
                using the design of the rocket or vehicle for 
                which the permit would be issued; or
          (2) a space support vehicle, or a vehicle that is in 
        development to become a space support vehicle, operated 
        by a citizen of the United States for space support 
        flights that will be conducted under the permit for, or 
        in support of, the purposes described in subparagraphs 
        (A) through (C) of paragraph (1).
  (e) Permits issued under this section shall--
          (1) authorize an unlimited number of launches and 
        reentries for a particular suborbital rocket or 
        suborbital rocket design, or for a particular reusable 
        launch vehicle or reusable launch vehicle design, for 
        the uses described in subsection (d); and
          (2) specify the type of modifications that may be 
        made to the suborbital rocket or launch vehicle without 
        changing the design to an extent that would invalidate 
        the permit.
  (f) Permits shall not be transferable.
  (g) The Secretary may issue a permit under this section 
notwithstanding any license issued under this chapter. The 
issuance of a license under this chapter may not invalidate a 
permit issued under this section.
  [(h) No person may operate a reusable suborbital rocket or 
reusable launch vehicle under a permit for carrying any 
property or human being for compensation or hire.]
  (h) No person may, under a permit, operate a reusable 
suborbital rocket, reusable launch vehicle, or space support 
vehicle for carrying any property or human being for 
compensation or hire.
  (i) For the purposes of sections 50907, 50908, 50909, 50910, 
50912, 50914, 50917, 50918, 50919, and 50923 of this chapter--
          (1) a permit shall be considered a license;
          (2) the holder of a permit shall be considered a 
        licensee;
          (3) a vehicle operating under a permit shall be 
        considered to be licensed; and
          (4) the issuance of a permit shall be considered 
        licensing.
This subsection shall not be construed to allow the transfer of 
a permit.

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