Calendar No. 605

103D CONGRESS

2D SESSION S. 1881

[Report No. 103–362]

A BILL

To establish and implement a technology investtration, and for other purposes. of the National Aeronautics and Space Adminis- ment policy for aeronautical and space activities

SEPTEMBER 7, 1994

Reported with an amendment
II

Calendar No. 605

103D CONGRESS

2D SESSION S. 1881

[Report No. 103–362]

To establish and implement a technology investment policy for aeronautical

and space activities of the National Aeronautics and Space Administration, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 1 (legislative day, FEBRUARY 22), 1994

Mr. ROCKEFELLER (for himself, Mr. BURNS, Ms. MIKULSKI, Mr. PRYOR, Mr.

INOUYE, Mr. LOTT, Mr. JEFFORDS, Mr. ROBB, Mr. GLENN, and Mrs.

FEINSTEIN) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

SEPTEMBER 7, 1994

Reported under authority of the order of the Senate of August 25 (legislative

day, August 18), 1994 by Mr. HOLLINGS, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To establish and implement a technology investment policy

for aeronautical and space activities of the National Aeronautics and Space Administration, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘National Aeronautics

3 and Space Administration Technology Investment Act of

4 1994’’.

5 SEC. 2. FINDINGS.

6 The Congress finds and declares the following:

7 (1) Federal investment in research and tech8 nology development can enhance the competitiveness

9 of United States industry in global markets.

10 (2) Industry and government partnerships in

11 the development of technologies increase the effec12 tiveness of Federal investment in the United States

13 economy.

14 (3) Ongoing defense reductions impact the

15 aerospace industrial base and require greater effort

16 by the National Aeronautics and Space Administra17 tion to ensure technological advancements in support

18 of its missions as well as in support of competitive19 ness.

20 (4) Increased contribution to the health of the

21 United States economy by the National Aeronautics

22 and Space Administration is important to the long23 term support of civilian aeronautics and space activi24 ties.

25 (5) Investments in research and development at

26 the National Aeronautics and Space Administration
3

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1 can be made to enhance the competitiveness of Unit2 ed States industry, as well as to promote develop3 ment of technologies for government and commercial

4 aeronautics and space missions.

5 (6) The National Aeronautics and Space Ad6 ministration directs a large portion of its budget to7 ward the procurement of goods and services for its

8 aeronautical and space missions and can use such

9 procurement to advance technology development in

10 industry and academia.

11 SEC. 3. TECHNOLOGY INVESTMENT POLICY.

12 It is the policy of the United States that—

13 (1) improving the competitive capabilities of

14 United States industry in conjunction with imple15 menting aeronautics and space missions shall be a

16 fundamental goal of the National Aeronautics and

17 Space Administration;

18 (2) the Administrator of the National Aero19 nautics and Space Administration (hereinafter re20 ferred to as the ‘‘Administrator’’), in planning for

21 and implementing national programs in aeronautics

22 and space, shall advocate technology development

23 designed to foster competitiveness of United States

24 industry in global markets;
4

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1 (3) the investment in technology by the Na2 tional Aeronautics and Space Administration shall

3 be coordinated closely with investment of other Fed4 eral agencies, the States, and local governments;

5 (4) technology investments shall be identified in

6 concert with United States industry; and

7 (5) the establishment of industry-led consortia

8 shall be encouraged to enhance opportunities for

9 United States industry to develop and advance tech10 nologies.

11 TITLE I—ROLE OF NATIONAL AERO12 NAUTICS AND SPACE ADMINISTRA13 TION IN TECHNOLOGY INVESTMENT

14 SEC. 101. AMENDMENTS TO NATIONAL AERONAUTICS AND

15 SPACE ACT OF 1958.

16 Section 102 of the National Aeronautics and Space

17 Act of 1958 (42 U.S.C. 2451) is amended—

18 (1) by striking subsection (e) and inserting in

19 lieu thereof the following:

20 ‘‘(e) The aeronautical and space activities of the

21 United States shall be conducted so as to contribute mate22 rially to the economic growth, competitiveness, and pro23 ductivity of the Nation.’’;
5

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1 (2) by striking subsection (f) and by redesignat2 ing subsections (g) and (h) as subsections (f) and

3 (g), respectively; and

4 (3) in subsection (g), as so redesignated, by

5 striking ‘‘(f), and (g)’’ and inserting in lieu thereof

6 ‘‘and (f)’’.

7 SEC. 102. TECHNOLOGY DEVELOPMENT AND COMMER8 CIALIZATION GOALS.

9 The Administrator shall ensure that, to the maximum

10 extent practicable, funded and planned aeronautical and

11 space projects of the National Aeronautics and Space Ad12 ministration—

13 (1) incorporate a technology plan that fosters

14 technological advances of value to both the mission

15 and the economy and reduces the life cycle costs of

16 such projects;

17 (2) promote commercial technology applications;

18 and

19 (3) measure and evaluate technology develop20 ment and the potential for commercialization.

21 SEC. 103. TECHNOLOGY INVESTMENT PROGRAM WITH IN22 DUSTRY.

23 (a) COMPETITION; ELIGIBILITY.—The Administrator

24 shall establish a competitive program under which the Ad-
6

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1 ministrator invests in any project proposed by an eligibile

2 firm where the Administrator determines that—

3 (1) the project will—

4 (A) advance the competitiveness of United

5 States industry;

6 (B) advance the technologies required for

7 aeronautical and space missions; and

8 (C) encourage industry-led consortia to de9 velop those of the technologies described in sub10 paragraph (B) that have been identified as a

11 priority by industry in concert with the Admin12 istrator; and

13 (2) the participation by the eligible firm would

14 be in the economic interest of the United States as

15 evidenced by the conduct of a significant level of its

16 research, development, engineering, or manufactur17 ing activities in the United States.

18 (b) CRITERIA.—In selecting projects for Federal in19 vestment under this section, the Administrator shall weigh

20 and consider—

21 (1) the extent of funding provided by industry

22 for such project;

23 (2) each project’s potential to advance tech24 nologies that enhance the competitiveness of United

25 States industry in global markets;
7

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1 (3) such project’s scientific and technical merit;

2 (4) the potential of the project to advance mis3 sion needs of the National Aeronautics and Space

4 Administration; and

5 (5) such other criteria as the Administrator

6 considers appropriate to carry out the purposes of

7 the this section.

8 (c) COST-SHARING.—The Administrator shall ensure

9 that the amount of the funds provided by the Federal Gov10 ernment under this section for a project does not exceed

11 the total amount provided by non-Federal participants for

12 that project. Of the amount provided by non-Federal par13 ticipants, the Administrator shall ensure that not less than

14 25 percent of total funding for any project for which Fed15 eral investment is made available under this section is pro16 vided by industry.

17 (d) FINANCING MECHANISMS.—In funding the

18 projects selected under this section, the Administrator is

19 encouraged to—

20 (1) use the authority of the National Aero21 nautics and Space Administration under section

22 203(c)(5) of the National Aeronautics and Space

23 Act of 1958 (42 U.S.C. 2473(c)(5)) especially when

24 applied to non-aerospace firms; and
8

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1 (2) enter into innovative procurement, financ2 ing, and management arrangements, consistent with

3 existing statutes.

4 (e) REGULATIONS.—The Administrator shall issue

5 regulations to implement the technology investment pro6 gram established under this section. The regulations shall

7 include—

8 (1) procedures for making application to the

9 Administrator for investment under this section;

10 (2) guidelines for cost-sharing pursuant to sub11 section (c); and

12 (3) procedures to be followed by the Adminis13 trator in selecting projects for investment under this

14 section.

15 (f) COORDINATION WITH FEDERAL AGENCIES.—In

16 carrying out this section, the Administrator shall consult

17 with the Secretaries of Commerce, Defense, Energy, and

18 Transportation and with such other Federal agency heads

19 as the Administrator considers appropriate.

20 (g) AUTHORIZATION.—There is authorized to be ap21 propriated to the Administrator $20,000,000 for each of

22 the fiscal years 1994 and 1995, for the purpose of carry23 ing out the program established under this section. Sums

24 appropriated under this section shall remain available

25 until expended.
9

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1 SEC. 104. ROLE OF PROCUREMENT IN TECHNOLOGY IN2 VESTMENT.

3 The Administrator, in meeting aeronautical and

4 space mission needs, shall coordinate and direct resources

5 of the National Aeronautics and Space administration in

6 the area of procurement to—

7 (1) advance state-of-the-art technologies;

8 (2) assess and procure, where appropriate, com9 mercially available technologies from the market10 place;

11 (3) use performance specifications; and

12 (4) reduce the paperwork requirements associ13 ated with procurement.

14 SEC. 105. COORDINATION WITH OTHER FEDERAL PRO15 GRAMS.

16 (a) TECHNOLOGY PROGRAMS AND TECHNOLOGY

17 TRANSFER PROGRAMS.—To ensure a consistent Federal

18 investment policy and to preclude multiple awards for a

19 single proposal, the Administrator shall ensure that the

20 technology investment activities established under this

21 title are coordinated closely with existing and future—

22 (1) Federal technology programs such as the

23 Technology Reinvestment Program of the Advanced

24 Research Projects Agency and the Advanced Tech25 nology Program of the National Institute of Stand26 ards and Technology; and
10

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1 (2) Federal technology transfer programs and

2 activities established to promote and advocate the

3 use of technologies developed in the Federal labora4 tories.

5 (b) IDENTIFICATION OF FUNDING RECEIVED FROM

6 OTHER AGENCIES.—The Administrator shall identify, as

7 part of the annual budget submission to Congress, all

8 funding received by the National Aeronautics and Space

9 Administration from other Federal agencies to manage

10 and carry out technology investment and development.

11 SEC. 106. INTERAGENCY TECHNOLOGY INITIATIVES.

12 As part of the National Aeronautics and Space Ad13 ministration’s annual budget submission to Congress, the

14 Administrator shall identify funding requirements, project

15 milestones, and 5-year budget projections, for the portion

16 undertaken by the National Aeronautics and Space Ad17 ministration of each interagency technology projects.

18 SEC. 107. COORDINATION WITH OTHER NASA PROGRAMS.

19 (A) SMALL BUSINESS INNOVATION RESEARCH.—The

20 Administrator shall coordinate the technology investment

21 activities under this title with the Small Business Innova22 tion Research activities of the National Aeronautics and

23 Space Administration to increase the effectiveness of fund24 ing to small businesses, to the maximum extent permitted

25 by law.
11

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1 (b) INDEPENDENT RESEARCH AND DEVELOPMENT

2 FUNDS.—The Administrator shall identify all funds reim3 bursed to contractors of the National Aeronautics and

4 Space Administration for activities commonly referred to

5 as ‘‘Independent Research and Development’’ and coordi6 nate such funds with the technology investment activities

7 under this title.

8 (c) TECHNOLOGY TRANSFER AND COMMERCIAL PRO9 GRAMS.—The Administrator shall coordinate the activities

10 of ongoing and future technology transfer, innovation, and

11 commercial programs of the National Aeronautics and

12 Space Administration with the technology investment ac13 tivities under this title.

14 SEC. 108. PERSONNEL INCENTIVES.

15 To encourage the personnel of the National Aero16 nautics and Space Administration to pursue technology in17 novation and development, the Administrator shall provide

18 personnel incentives, including—

19 (1) promotions and within-grade increases;

20 (2) bonuses and cash awards under the inven21 tions and contributions system and senior executive

22 service; and

23 (3) paid leave, sabbaticals, or intergovernmental

24 personnel transfers to other Federal agencies or the

25 private sector to pursue technology innovations and
12

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1 development, as the Administrator deems appro2 priate.

3 SEC. 109. ANNUAL REPORT TO CONGRESS.

4 The Administrator shall assess the technology invest5 ment activities established under this title and shall sub6 mit a report to Congress on the results of such assessment

7 of activities. The report shall accompany the annual budg8 et submission to Congress.

9 SEC. 110. APPLICATION OF ANTITRUST LAWS.

10 Nothing in this title shall be construed to create an

11 immunity from any civil or criminal action under any Fed12 eral or State antitrust law, or to alter or restrict in any

13 manner the applicability of any Federal or State antitrust

14 law.

15 SEC. 111. DEFINITIONS.

16 For the purposes of this title, the term—

17 (1) ‘‘eligible firm’’ means a business entity that

18 is either—

19 (A) a company that has majority owner20 ship or control by individuals who are citizens

21 of the United States; or

22 (B) a company that is incorporated in the

23 United States and has a parent company which

24 is incorporated in a country whose govern25 ment—
13

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1 (i) permits companies described under

2 subparagraph (A) to participate in re3 search and development consortia to which

4 such government provides funding directly,

5 or indirectly through one or more inter6 national organizations; and

7 (ii) affords adequate and effective pro8 tection for the intellectual property rights

9 of companies described under subpara10 graph (A);

11 (2) ‘‘Federal laboratory’’ has the meaning given

12 such term in section 4(6) or the Stevenson-Wydler

13 Technology Innovation Act of 1980 (15 U.S.C.

14 3703(6)); and

15 (3) ‘‘United States’’ means the several States,

16 the District of Columbia, Puerto Rico, the Virgin Is17 lands, Guam, American Samoa, the Northern Mari18 ana Islands, and any other territory or possession of

19 the United States.

20 TITLE II—NATIONAL AERONAUTICS

21 FACILITIES

22 SEC. 201. FINDINGS.

23 The Congress finds and declares the following:
14

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1 (1) Aerospace technologies contribute substan2 tially to the balance of trade and the competitiveness

3 of United States industry.

4 (2) The international market share of the

5 United States aerospace industry has eroded steadily

6 due to competition from foreign consortia that re7 ceive substantial direct subsidies from their govern8 ments.

9 (3) The United States aerospace industry con10 tinues to be impacted negatively by the reduced in11 vestment in national defense.

12 (4) The national civil and military aeronautics

13 facilities of the United States are aging and, with

14 few exceptions, cannot be modified to test new tech15 nologies in aircraft and engine design.

16 (5) Inadequate domestic facilities force the

17 United States aerospace industry to use the aero18 nautics facilities of foreign countries, increasing the

19 likelihood that technologies will be transferred to

20 competing foreign industries.

21 SEC. 202. POLICY.

22 It is the policy of the United States that—

23 (1) Federal investment in domestic aerospace

24 technologies shall be a priority of the United States
15

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1 to safeguard the international market share of the

2 United States aerospace industry;

3 (2) maintaining world class aeronautics facili4 ties in the United States shall be a major element

5 of Federal investment in aeronautics research and

6 development;

7 (3) the National Aeronautics and Space Admin8 istration shall work closely with industry to identify

9 and address aeronautics technology and facility is10 sues; and

11 (4) industry and government cost-sharing for

12 facilities construction and use shall be investigated

13 to achieve aeronautics research and technology goals

14 within a constrained Federal budget.

15 SEC. 203. WORLDWIDE FACILITIES ASSESSMENT.

16 The President shall conduct an assessment of all aer17 onautics facilities in the United States and in other coun18 tries and report to Congress the results of this assessment

19 not later than January 1, 1995. The assessment shall in20 clude—

21 (1) identification of all existing and planned

22 aeronautics research and development facilities in

23 the United States and in other countries;

24 (2) analysis of the strengths and weaknesses of

25 each aeronautics facility that impact aeronautical re-
16

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1 search and technology objectives of the United

2 States Government and domestic industries;

3 (3) determination of the cost-savings achievable

4 by closing non-essential aeronautics facilities of the

5 National Aeronautics and Space Administration and

6 other Federal agencies; and

7 (4) determination of the current use and plans

8 for use of foreign aeronautics facilities for research

9 and technology activities of the United States Gov10 ernment and domestic industries.

11 SEC. 204. AERONAUTICS FACILITIES STRATEGY.

12 (a) STRATEGY.—The President shall work closely

13 with domestic industries to coordinate, develop, and imple14 ment a strategy for Federal investment in aeronautics re15 search and technology and aeronautics facilities. This

16 strategy shall establish—

17 (1) priorities for Federal investment in aero18 nautics facilities;

19 (2) a facilities implementation schedule to meet

20 research and technology project milestones and aero21 space industry market requirements;

22 (3) the projected cost of constructing and oper23 ating new facilities; and

24 (4) options and recommendations to provide

25 funding (including cost-sharing and risk-sharing
17

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1 with industries and among Federal agencies and in2 novative procurement, financing, or management ar3 rangements) for the construction of new aeronautics

4 facilities and for the operation of new aeronautics

5 facilities.

6 (b) DEADLINE.—The strategy required by subsection

7 (a), and budget requirements associated with implement8 ing such strategy, shall be submitted to Congress not later

9 than January 1, 1995.

10 SECTION 1. SHORT TITLE.

11 This Act may be cited as the ‘‘National Aeronautics

12 and Space Administration Technology Investment Act of

13 1994’’.

14 SEC. 2. FINDINGS.

15 The Congress finds and declares the following:

16 (1) Federal investment in research and tech17 nology development can enhance the competitiveness

18 of United States industry in global markets.

19 (2) Industry and government partnerships in the

20 development of technologies increase the effectiveness

21 of Federal investment in the United States economy.

22 (3) Ongoing defense reductions impact the aero23 space industrial base and require greater effort by the

24 National Aeronautics and Space Administration to
18

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1 ensure technological advancements in support of its

2 missions as well as in support of competitiveness.

3 (4) Increased contribution to the health of the

4 United States economy by the National Aeronautics

5 and Space Administration is important to the long6 term support of civilian aeronautics and space activi7 ties.

8 (5) Investments in research and development at

9 the National Aeronautics and Space Administration

10 can be made to enhance the competitiveness of United

11 States industry, as well as to promote development of

12 technologies for government and commercial aero13 nautics and space missions.

14 (6) The National Aeronautics and Space Admin15 istration directs a large portion of its budget toward

16 the procurement of goods and services for its aero17 nautical and space missions and can use such pro18 curement to advance technology development in in19 dustry and academia.

20 SEC. 3. TECHNOLOGY INVESTMENT POLICY.

21 It is the policy of the United States that—

22 (1) improving the competitive capabilities of

23 United States industry in conjunction with imple24 menting aeronautics and space missions shall be a
19

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1 fundamental goal of the National Aeronautics and

2 Space Administration;

3 (2) the Administrator of the National Aero4 nautics and Space Administration (hereinafter re5 ferred to as the ‘‘Administrator’’), in planning for

6 and implementing national programs in aeronautics

7 and space, shall advocate technology development de8 signed to foster competitiveness of United States in9 dustry in global markets;

10 (3) the investment in technology by the National

11 Aeronautics and Space Administration shall be co12 ordinated closely with investment of other Federal

13 agencies, the States, and local governments;

14 (4) technology investments shall be identified in

15 concert with United States industry; and

16 (5) the establishment of industry-led consortia,

17 alliances, or other entities shall be encouraged to en18 hance opportunities for United States industry to de19 velop and advance technologies.
20

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1 TITLE I—ROLE OF NATIONAL AERO2 NAUTICS AND SPACE ADMINISTRA3 TION IN TECHNOLOGY INVESTMENT

4 SEC. 101. AMENDMENTS TO NATIONAL AERONAUTICS AND

5 SPACE ACT OF 1958.

6 Section 102 of the National Aeronautics and Space Act

7 of 1958 (42 U.S.C. 2451) is amended—

8 (1) by striking subsection (e) and inserting the

9 following:

10 ‘‘(e) The aeronautical and space activities of the Unit11 ed States shall be conducted so as to contribute materially

12 to the economic growth, competitiveness, and productivity

13 of the Nation.’’;

14 (2) by striking subsection (f) and by redesignat15 ing subsections (g) and (h) as subsections (f) and (g),

16 respectively; and

17 (3) in subsection (g), as so redesignated, by strik18 ing ‘‘(f), and (g)’’ and inserting ‘‘and (f)’’.

19 SEC. 102. TECHNOLOGY DEVELOPMENT AND COMMER20 CIALIZATION GOALS.

21 The Administrator shall require that, to the maximum

22 extent practicable, aeronautical and space projects of the

23 National Aeronautics and Space Administration—

24 (1) incorporate a technology plan that fosters

25 technological advances of value to both the mission
21

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1 and the economy and reduces the life cycle costs of

2 such projects;

3 (2) promote commercial technology applications;

4 (3) measure and evaluate technology development

5 and the potential for commercialization; and

6 (4) seek the involvement of United States indus7 try.

8 SEC. 103. INDUSTRY TECHNOLOGY PROGRAM.

9 (a) PURPOSE; CRITERIA.—The Administrator shall es10 tablish a competitive program under which the Adminis11 trator may fund research and development projects pro12 posed by industry-led consortia, alliances, or other entities,

13 for the purpose of developing new technologies. In selecting

14 projects to be funded under this section, the Administrator

15 shall weigh and consider—

16 (1) each project’s scientific and technical merit;

17 (2) the potential of the project to advance mis18 sion needs of the National Aeronautics and Space Ad19 ministration;

20 (3) each project’s potential to advance tech21 nologies that enhance the competitiveness of United

22 States industry in global markets; and

23 (4) such other criteria as the Administrator con24 siders appropriate to carry out the purposes of this

25 section.
22

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1 (b) COST-SHARING.—The Administrator shall ensure

2 that the amount of the funds provided by the Federal Gov3 ernment under this section for a project does not exceed the

4 total amount provided by non-Federal participants for that

5 project.

6 (c) FINANCING MECHANISMS.—In funding the tech7 nology projects selected under this section, the Adminis8 trator is encouraged—

9 (1) to make greater use of the authority of the

10 National Aeronautics and Space Administration

11 under section 203(c)(5) of the National Aeronautics

12 and Space Act of 1958 (42 U.S.C. 2473(c)(5)) espe13 cially when applied to non-aerospace firms; and

14 (2) to enter into innovative procurement, financ15 ing, and management arrangements, consistent with

16 existing statutes.

17 (d) COORDINATION WITH FEDERAL AGENCIES.—In

18 carrying out this section, the Administrator shall consult

19 with the Secretaries of Commerce, Defense, Energy, and

20 Transportation and with such other Federal agency heads

21 as the Administrator considers appropriate.

22 (e) AUTHORIZATION.—There are authorized to be ap23 propriated to the Administrator such sums as may be nec24 essary to carry out the provisions of this section. Sums ap-
23

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1 propriated under this section shall remain available until

2 expended.

3 SEC. 104. CONDITIONS ON TECHNOLOGY INVESTMENT;

4 ECONOMIC BENEFIT.

5 In funding technology programs and activities under

6 this title, the Administrator shall ensure that the principal

7 economic benefits accrue to the economy of the United

8 States. The Administrator may consider such specific cri9 teria as appropriate, and in developing such criteria, shall

10 consult with appropriate Federal agency heads.

11 SEC. 105. ROLE OF PROCUREMENT IN TECHNOLOGY IN12 VESTMENT.

13 The Administrator, in meeting aeronautical and space

14 mission needs, shall coordinate and direct resources of the

15 National Aeronautics and Space Administration in the

16 area of procurement to—

17 (1) advance state-of-the-art technologies;

18 (2) assess and procure, where appropriate, com19 mercially available technologies from the marketplace;

20 (3) use performance incentives; and

21 (4) reduce the paperwork requirements associated

22 with procurement.
24

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1 SEC. 106. COORDINATION WITH OTHER FEDERAL PRO2 GRAMS.

3 (a) TECHNOLOGY PROGRAMS AND TECHNOLOGY

4 TRANSFER PROGRAMS.—To ensure a consistent Federal in5 vestment policy and to preclude multiple awards for a sin6 gle proposal, the Administrator shall ensure that the tech7 nology investment activities established under this title are

8 coordinated closely with existing and future—

9 (1) Federal technology programs such as the

10 Technology Reinvestment Program of the Advanced

11 Research Projects Agency and the Advanced Tech12 nology Program of the National Institute of Stand13 ards and Technology; and

14 (2) Federal technology transfer programs and ac15 tivities established to promote and advocate the use of

16 technologies developed in the Federal laboratories.

17 (b) IDENTIFICATION OF FUNDING RECEIVED FROM

18 OTHER AGENCIES.—The Administrator shall identify, as

19 part of the annual budget submission to Congress, all fund20 ing received by the National Aeronautics and Space Admin21 istration from other Federal agencies for technology invest22 ment and development, including funds from programs list23 ed in (a)(1) above.

24 SEC. 107. INTERAGENCY TECHNOLOGY INITIATIVES.

25 As part of the National Aeronautics and Space Ad26 ministration’s annual budget submission to Congress, the
25

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1 Administrator shall identify funding requirements, project

2 milestones, and 5-year budget projections, for the portion

3 undertaken by the National Aeronautics and Space Admin4 istration of each interagency technology project.

5 SEC. 108. COORDINATION WITH OTHER NASA PROGRAMS.

6 (a) SMALL BUSINESS INNOVATION RESEARCH.—The

7 Administrator shall coordinate the technology investment

8 activities under this title with the Small Business Innova9 tion Research activities of the National Aeronautics and

10 Space Administration to ensure the effectiveness of funding

11 to small businesses, to the maximum extent permitted by

12 law.

13 (b) INDEPENDENT RESEARCH AND DEVELOPMENT

14 FUNDS.—The Administrator shall identify all funds pro15 vided to contractors of the National Aeronautics and Space

16 Administration for activities commonly referred to as

17 ‘‘Independent Research and Development’’ and coordinate

18 such funds with the technology investment activities under

19 this title.

20 (c) TECHNOLOGY TRANSFER AND COMMERCIAL PRO21 GRAMS.—The Administrator shall coordinate the activities

22 of ongoing and future technology transfer, innovation, and

23 commercial programs of the National Aeronautics and

24 Space Administration with the technology investment ac25 tivities under this title.
26

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1 SEC. 109. PERSONNEL INCENTIVES.

2 To encourage the personnel of the National Aeronautics

3 and Space Administration to pursue technology innovation

4 and development, the Administrator shall provide personnel

5 incentives, including—

6 (1) promotions and within-grade increases;

7 (2) bonuses and cash awards under the inven8 tions and contributions system and senior executive

9 service; and

10 (3) paid leave, sabbaticals, or intergovernmental

11 personnel transfers to other Federal agencies or the

12 private sector to pursue technology innovation and

13 development, as the Administrator deems appropriate.

14 SEC. 110. ANNUAL REPORT TO CONGRESS.

15 The Administrator shall assess the technology invest16 ment activities established under this title and shall submit

17 a report to Congress on the results of such assessment of

18 activities. The report shall accompany the annual budget

19 submission to Congress.

20 SEC. 111. APPLICATION OF ANTITRUST LAWS.

21 Nothing in this title shall be construed to create an

22 immunity from any civil or criminal action under any

23 Federal or State antitrust law, or to alter or restrict in

24 any manner the applicability of any Federal or State anti25 trust law.
27

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1 SEC. 112. DEFINITIONS.

2 For the purposes of this title, the term—

3 (1) ‘‘Federal laboratory’’ has the meaning given

4 such term in section 4(6) of the Stevenson-Wydler

5 Technology Innovation Act of 1980 (15 U.S.C.

6 3703(6)).

7 (2) ‘‘United States’’ means the several States, the

8 District of Columbia, Puerto Rico, the Virgin Islands,

9 Guam, American Samoa, the Northern Mariana Is10 lands, and any other territory or possession of the

11 United States.

12 TITLE II—NATIONAL AERONAUTICS

13 FACILITIES

14 SEC. 201. FINDINGS.

15 The Congress finds and declares the following:

16 (1) Aerospace technologies contribute substan17 tially to the balance of trade and the competitiveness

18 of United States industry.

19 (2) The international market share of the United

20 States aerospace industry has eroded steadily due to

21 competition from foreign consortia that receive sub22 stantial direct subsidies from their governments.

23 (3) The United States aerospace industry contin24 ues to be impacted negatively by the reduced invest25 ment in national defense.
28

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1 (4) The national civil and military aeronautics

2 facilities of the United States are aging and, with few

3 exceptions, cannot be modified to simulate adequately

4 the flight conditions that will be required for highly

5 productive aircraft design and development.

6 (5) Inadequate domestic facilities force the

7 United States aerospace industry to use the aero8 nautics facilities of foreign countries, increasing the

9 likelihood that technologies will be transferred to com10 peting foreign industries.

11 SEC. 202. POLICY.

12 It is the policy of the United States that—

13 (1) Federal investment in domestic aerospace

14 technologies shall be a priority of the United States

15 to safeguard the international market share of the

16 United States aerospace industry;

17 (2) maintaining world class aeronautics facili18 ties in the United States shall be a major element of

19 Federal investment in aerospace research and develop20 ment;

21 (3) the National Aeronautics and Space Admin22 istration shall work closely with industry to identify

23 and address aeronautics technology and facility is24 sues; and
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1 (4) industry and government cost-sharing for fa2 cilities construction and use shall be investigated to

3 achieve aeronautics research and technology goals

4 within a constrained Federal budget.

5 SEC. 203. WORLDWIDE FACILITIES ASSESSMENT.

6 The President shall conduct an assessment of all aero7 nautics facilities in the United States and in other coun8 tries and report to Congress the results of this assessment

9 at the time the fiscal year 1996 budget is submitted. The

10 assessment shall include—

11 (1) identification of all existing and planned

12 aeronautics research and development facilities in the

13 United States and in other countries;

14 (2) analysis of the capabilities of each aero15 nautics facility that impact aeronautical research

16 and technology objectives of the United States Govern17 ment and domestic industries; and

18 (3) determination of the current use and plans

19 for use of foreign aeronautics facilities for research

20 and technology activities of the United States Govern21 ment and domestic industries.

22 SEC. 204. AERONAUTICS FACILITIES STRATEGY.

23 (a) STRATEGY.—The President or his designees shall

24 work closely with domestic industries to coordinate, develop,

25 and implement a strategy for Federal investment in aero-
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1 nautics research and technology and aeronautics facilities.

2 This strategy shall establish—

3 (1) priorities for Federal investment in aero4 nautics facilities;

5 (2) a facilities implementation schedule to meet

6 research and technology project milestones and aero7 space industry market requirements;

8 (3) the projected cost of constructing and operat9 ing new facilities; and

10 (4) options and recommendations to provide

11 funding (including cost-sharing and risk-sharing with

12 industries and among Federal agencies and innova13 tive procurement, financing, or management arrange14 ments) for the construction of new aeronautics facili15 ties and for the operation of new aeronautics facili16 ties.

17 (b) DEADLINE.—The strategy required by subsection

18 (a), and budget requirements associated with implementing

19 such strategy, shall accompany the fiscal year 1996 budget

20 submission to Congress.

21 TITLE III—COMMERCIAL SPACE LAUNCH

22 AMENDMENTS

23 SEC. 301. COMMERCIAL REENTRY VEHICLES.

24 Chapter 701 of title 49, United States Code, is amend25 ed—
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1 (1) in the table of sections—

2 (A) by amending the item relating to sec3 tion 70104 to read as follows:

‘‘70104. Restrictions on launches, operations, and reentries.’’;

4 (B) by amending the item relating to sec5 tion 70108 to read as follows:

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

and reentries.’’;

6 (C) by amending the item relating to sec7 tion 70109 to read as follows:

‘‘70109. Preemption of scheduled launches or reentries.’’;

8 and

9 (D) by adding at the end the following new

10 item:

‘‘70120. Report to Congress.’’;

11 (2) in section 70102—

12 (A) by inserting ‘‘from Earth’’ after ‘‘and

13 any payload’’ in paragraph (3);

14 (B) by redesignating paragraphs (10)

15 through (12) as paragraphs (12) through (14),

16 respectively; and

17 (C) by inserting after paragraph (9) the fol18 lowing new paragraphs:

19 ‘‘(10) ‘reenter’ and ‘reentry’ mean to return pur20 posefully, or attempt to return, a reentry vehicle and
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1 payload, if any, from Earth orbit or outer space to

2 Earth.

3 ‘‘(11) ‘reentry vehicle’ means any vehicle de4 signed to return from Earth orbit or outer space to

5 Earth substantially intact.’’;

6 (3) in section 70104—

7 (A) by amending the section designation

8 and heading to read as follows:

9 ‘‘§ 70104. Restrictions on launches, operations, and re10 entries’’;

11 (B) by inserting ‘‘, or reenter a reentry ve12 hicle,’’ after ‘‘operate a launch site’’ each place

13 it appears in subsection (a);

14 (C) by inserting ‘‘or reentry’’ after ‘‘launch

15 or operation’’ in subsection (a)(3) and (4);

16 (D) in subsection (b)—

17 (i) by striking ‘‘launch license’’ and

18 inserting ‘‘license’’;

19 (ii) by inserting ‘‘or reenter’’ after

20 ‘‘may launch’’; and

21 (iii) by inserting ‘‘or reentering’’ after

22 ‘‘related to launching’’; and

23 (E) in subsection (c)—
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1 (i) by amending the subsection heading

2 to read as follows: ‘‘PREVENTING LAUNCHES

3 OR REENTRIES.—’’;

4 (ii) by inserting ‘‘or reentry’’ after

5 ‘‘prevent the launch’’; and

6 (iii) by inserting ‘‘or reentry’’ after

7 ‘‘decides the launch’’;

8 (4) in section 70105—

9 (A) by inserting ‘‘, or reentry of a reentry

10 vehicle,’’ after ‘‘operation of a launch site’’ in

11 subsection (b)(1); and

12 (B) by striking ‘‘or operation’’ and insert13 ing ‘‘, operation, or reentry’’ in subsection

14 (b)(2)(A);

15 (5) in section 70106(a)—

16 (A) by inserting ‘‘or reentry site’’ after ‘‘ob17 server at a launch site’’; and

18 (B) by inserting ‘‘or reentry vehicle’’ after

19 ‘‘assemble a launch vehicle’’;

20 (6) in section 70108—

21 (A) by amending the section designation

22 and heading to read as follows:
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1 ‘‘§ 70108. Prohibition, suspension, and end of

2 launches, operation of launch site, and re3 entries’’;

4 and

5 (B) in subsection (a)—

6 (i) by inserting ‘‘, or reentry of a re7 entry vehicle,’’ after ‘‘operation of a launch

8 site’’; and

9 (ii) by inserting ‘‘or reentry’’ after

10 ‘‘launch or operation’’;

11 (7) in section 70109—

12 (A) by amending the section designation

13 and heading to read as follows:

14 ‘‘§ 70109. Preemption of scheduled launches or reen15 tries’’;

16 (B) in subsection (a)—

17 (i) by inserting ‘‘or reentry’’ after ‘‘en18 sure that a launch’’;

19 (ii) by inserting ‘‘, reentry site,’’ after

20 ‘‘United States Government launch site’’;

21 (iii) by inserting ‘‘or reentry date com22 mitment’’ after ‘‘launch date commitment’’;

23 (iv) by inserting ‘‘or reentry’’ after

24 ‘‘obtained for a launch’’;

25 (v) by inserting ‘‘, reentry site,’’ after

26 ‘‘access to a launch site’’;
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1 (vi) by inserting ‘‘, or services related

2 to a reentry,’’ after ‘‘amount for launch

3 services’’; and

4 (vii) by inserting ‘‘or reentry’’ after

5 ‘‘the scheduled launch’’; and

6 (C) in subsection (c), by inserting ‘‘or re7 entry’’ after ‘‘prompt launching’’;

8 (8) in section 70110—

9 (A) by inserting ‘‘or reentry’’ after ‘‘prevent

10 the launch’’ in subsection (a)(2); and

11 (B) by inserting ‘‘, or reentry of a reentry

12 vehicle,’’ after ‘‘operation of a launch site’’ in

13 subsection (a)(3)(B);

14 (9) in section 70112—

15 (A) by inserting ‘‘or reentry’’ after ‘‘one

16 launch’’ in subsection (a)(3);

17 (B) by inserting ‘‘or reentry’’ after ‘‘launch

18 services’’ in subsection (a)(4);

19 (C) by inserting ‘‘or reentry’’ after ‘‘launch

20 services’’ each place it appears in subsection (b);

21 (D) by inserting ‘‘OR REENTRIES’’ after

22 ‘‘LAUNCHES’’ in the heading for subsection (e);

23 and

24 (E) by inserting ‘‘or reentry’’ after ‘‘launch

25 site’’ in subsection (e);
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1 (10) in section 70113 (a)(1) and (d) (1) and (2),

2 by inserting ‘‘or reentry’’ after ‘‘one launch’’ each

3 place it appears;

4 (11) in section 70115(b)(1)(D)(i)—

5 (A) by inserting ‘‘reentry site,’’ after

6 ‘‘launch site,’’; and

7 (B) by inserting ‘‘or reentry vehicle’’ after

8 ‘‘site of a launch vehicle’’;

9 (12) in section 70117—

10 (A) by inserting ‘‘or reentry a reentry vehi11 cle’’ after ‘‘operate a launch site’’ in subsection

12 (a);

13 (B) by inserting ‘‘or reentry’’ after ‘‘ap14 proval of a space launch’’ in subsection (d);

15 (C) in subsection (f)—

16 (i) by inserting ‘‘OR REENTRY’’ after

17 ‘‘LAUNCH’’ in the subsection heading;

18 (ii) by inserting ‘‘, reentry vehicle,’’

19 after ‘‘A launch vehicle’’;

20 (iii) by inserting ‘‘or reentered’’ after

21 ‘‘that is launched’’; and

22 (iv) by inserting ‘‘or reentry’’ after

23 ‘‘the launch’’; and

24 (D) in subsection (g)—
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1 (i) by inserting ‘‘reentry of a reentry

2 vehicle,’’ after ‘‘or launch site,’’ in para3 graph (1); and

4 (ii) by inserting ‘‘reentry,’’ after

5 ‘‘launch,’’ in paragraph (2);

6 (13) in section 70119, by inserting the following

7 after paragraph (2):

8 ‘‘There are authorized to be appropriated to the Secretary

9 of Transportation such amounts as may be necessary to

10 carry out this chapter for fiscal year 1995.’’; and

11 (14) by adding at the end the following new sec12 tion:

13 ‘‘§ 70120. Report to Congress

14 ‘‘The Secretary of Transportation shall submit to Con15 gress an annual report to accompany the President’s budget

16 request that—

17 ‘‘(1) describes all activities undertaken under

18 this chapter, including a description of the process for

19 the application for and approval of licenses under

20 this chapter and recommendations for legislation that

21 may further commercial launches and reentries; and

22 ‘‘(2) reviews the performance of the regulatory

23 activities and the effectiveness of the Office of Com24 mercial Space Transportation.’’.
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1 SEC. 302. LICENSE APPLICATIONS.

2 (a) IN GENERAL.—Section 70105 of title 49, United

3 States Code, is amended—

4 (1) in subsection (a), by striking ‘‘receiving an

5 application’’ both places it appears and inserting

6 ‘‘accepting an application in accordance with sub7 section (b)(2)(D)’’;

8 (2) by striking ‘‘and’’ at the end of subsection

9 (b)(2)(B);

10 (3) by striking the period at the end of sub11 section (b)(2)(C) and inserting ‘‘; and’’; and

12 (4) by adding at the end of subsection (b)(2)(C)

13 the following new subparagraph:

14 ‘‘(D) regulations establishing criteria for accept15 ing an application for a license under this chapter.’’.

16 (b) EFFECTIVE DATE.—The amendment made by sub17 section (a)(1) shall take effect upon the effective date of final

18 regulations issued pursuant to section 70105(b)(2)(D) of

19 title 49, United States Code, as added by subsection (a)(4).

20 SEC. 303. PROHIBITION ON SPACE ADVERTISING.

21 (a) DEFINITION.—Section 70102 of title 49, United

22 States Code, is amended by inserting after paragraph (14),

23 as redesignated by section 301(2)(B) of this title, the follow24 ing new paragraph:

25 ‘‘(15) ‘space advertising’ means advertising in

26 outer space that is capable of being seen by a human
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1 being on the surface of the Earth without the aid of

2 a telescope or other technological device.’’.

3 (b) PROHIBITION.—Chapter 701 of title 49, United

4 States Code, is amended by inserting after section 70109

5 the following new section:

6 ‘‘§ 70109a. Prohibition on space advertising

7 ‘‘(a) PROHIBITION.—Notwithstanding the provisions

8 of this chapter or any other provision of law—

9 ‘‘(1) the Secretary shall not—

10 ‘‘(A) issue or transfer a license under this

11 chapter; or

12 ‘‘(B) waive the license requirements of this

13 chapter;

14 for the launch of a payload containing any material

15 to be used for the purposes of space advertising; and

16 ‘‘(2) no holder of a license under this chapter, on

17 or after the date of enactment of the National Aero18 nautics and Space Administration Technology Invest19 ment Act of 1994, shall launch a payload containing

20 any material to be used for purposes of space adver21 tising.

22 ‘‘(b) CIVIL PENALTIES.—Any person who violates the

23 provisions of subsection (a)(2) shall—
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1 ‘‘(1) be subject to a civil penalty, not to exceed

2 $30,000,000 which shall be assessed by the Secretary;

3 and

4 ‘‘(2) not be issued a license under this chapter

5 for a period of 2 years from the date of such violation,

6 or, in the case of multiple violations, from the date

7 of the most recent violation.’’.

8 (c) NEGOTIATION WITH FOREIGN SPACE LAUNCHING

9 NATIONS.—

10 (1) The President is requested to negotiate with

11 foreign launching nations for the purpose of reaching

12 an agreement or agreements that prohibit the use of

13 outer space for advertising purposes.

14 (2) It is the sense of Congress that the President

15 should take such action as is appropriate and feasible

16 to enforce the terms of any agreement to prohibit the

17 use of outer space for advertising purposes.

18 (3) As used in this subsection, the term ‘‘foreign

19 launching nation’’ means a nation—

20 (A) which launches, or procures the launch21 ing of, a payload into outer space; or

22 (B) from whose territory or facility a pay23 load is launched into outer space.

24 (d) CLERICAL AMENDMENT.—The table of sections for

25 chapter 701 of title 49, United States Code, is amended by
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1 inserting the following after the item relating to section

2 70109:

‘‘70109a. Prohibition on space advertising’’.

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