I 

114TH CONGRESS 

1ST SESSION H. R. 2262 

To facilitate a pro-growth environment for the developing commercial space 

industry by encouraging private sector investment and creating more 

stable and predictable regulatory conditions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 12, 2015 

Mr. MCCARTHY (for himself, Mr. SMITH of Texas, Mr. PALAZZO, Mr. ROHRABACHER, Mr. LUCAS, Mr. MCCAUL, Mr. POSEY, Mr. KNIGHT, Mr. 

BABIN, Mr. HULTGREN, Mr. BRIDENSTINE, Mr. WEBER of Texas, and 

Mr. MOOLENAAR) introduced the following bill; which was referred to the 

Committee on Science, Space, and Technology 

A BILL 

To facilitate a pro-growth environment for the developing 

commercial space industry by encouraging private sector 

investment and creating more stable and predictable regulatory conditions, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Spurring Private Aero5 space Competitiveness and Entrepreneurship Act of 2015’’ 

6 or the ‘‘SPACE Act of 2015’’. 

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1 SEC. 2. CONSENSUS STANDARDS. 

2 Section 50905(c) of title 51, United States Code, is 

3 amended— 

4 (1) by striking paragraph (3); 

5 (2) by redesignating paragraph (4) as para6 graph (8); and 

7 (3) by inserting after paragraph (2) the fol8 lowing: 

9 ‘‘(3) INTERIM INDUSTRY VOLUNTARY CON10 SENSUS STANDARDS REPORT.—The Secretary, in 

11 consultation with the Commercial Space Transpor12 tation Advisory Committee, or its successor organi13 zation, shall provide a report to the Committee on 

14 Science, Space, and Technology of the House of 

15 Representatives and the Committee on Commerce, 

16 Science, and Transportation of the Senate on the 

17 progress of the commercial space transportation in18 dustry in developing voluntary consensus standards 

19 or any other construction that promotes best prac20 tices to improve the industry. Such report shall in21 clude, at a minimum— 

22 ‘‘(A) any voluntary industry consensus 

23 standards or any other construction that have 

24 been accepted by the industry at large; 

25 ‘‘(B) the identification of areas that have 

26 the potential to become voluntary industry conmstockstill on DSK4VPTVN1PROD with BILLS

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1 sensus standards or another potential construc2 tion that are currently under consideration by 

3 the industry at large; 

4 ‘‘(C) an assessment from the Secretary on 

5 the general progress of the industry in adopting 

6 voluntary consensus standards or any other 

7 construction; 

8 ‘‘(D) lessons learned about voluntary in9 dustry consensus standards or any other con10 struction, best practices, and commercial space 

11 launch operations; 

12 ‘‘(E) any lessons learned associated with 

13 the development, potential application, and ac14 ceptance of voluntary industry consensus stand15 ards or any other construction, best practices, 

16 and commercial space launch operations; and 

17 ‘‘(F) recommendations, findings, or obser18 vations from the Commercial Space Transpor19 tation Advisory Committee, or its successor or20 ganization, on the progress of the industry in 

21 developing industry consensus standards or any 

22 other construction. 

23 This report, with the appropriate updates in the in24 tervening periods, shall be transmitted to such com25 mittees no later than December 31, 2016, December 

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1 31, 2018, and December 31, 2020. Each report shall 

2 describe and assess the progress achieved as of 6 

3 months prior to the specified transmittal date. 

4 ‘‘(4) INTERIM REPORT ON KNOWLEDGE AND

5 OPERATIONAL EXPERIENCE.—The Secretary shall 

6 provide a report to the Committee on Science, 

7 Space, and Technology of the House of Representa8 tives and the Committee on Commerce, Science, and 

9 Transportation of the of the Senate on the status of 

10 the knowledge and operational experience acquired 

11 by the industry while providing flight services for 

12 compensation or hire to support the development of 

13 a safety framework. Interim reports shall be trans14 mitted to such committees no later than December 

15 31, 2018, and December 31, 2020. Each report shall 

16 describe and assess the progress achieved as of 6 

17 months prior to the specified transmittal date. 

18 ‘‘(5) INDEPENDENT REVIEW.—No later than 

19 December 31, 2021, an independent, private systems 

20 engineering and technical assistance organization or 

21 standards development organization contracted by 

22 the Secretary shall provide to the Committee on 

23 Science, Space, and Technology of the House of 

24 Representatives and the Committee on Commerce, 

25 Science, and Transportation of the Senate an assessmstockstill on DSK4VPTVN1PROD with BILLS

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1 ment of the readiness of the commercial space indus2 try and the Federal Government to transition to a 

3 safety framework that may include regulations. As 

4 part of the review, the contracted organization shall 

5 evaluate— 

6 ‘‘(A) the progress of the commercial space 

7 industry in adopting industry voluntary stand8 ards or any other construction as reported by 

9 the Secretary in the interim assessments in10 cluded in reports provided under paragraph (4); 

11 and 

12 ‘‘(B) the knowledge and operational experi13 ence obtained by the commercial space industry 

14 while providing services for compensation or 

15 hire as reported by the Secretary in the interim 

16 knowledge and operational reports provided 

17 under paragraph (4). 

18 ‘‘(6) LEARNING PERIOD.—Beginning on De19 cember 31, 2023, the Secretary may propose regula20 tions under this subsection without regard to para21 graph (2)(C) and (D). The development of any such 

22 regulations shall take into consideration the evolving 

23 standards of the commercial space flight industry as 

24 identified through the reports published under para25 graphs (3) and (4). 

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1 ‘‘(7) COMMUNICATION AND TRANSPARENCY.— 

2 Nothing in this subsection shall be construed to limit 

3 the authority of the Secretary of Transportation to 

4 discuss potential approaches, potential performance 

5 standards, or any other topic related to this sub6 section with the commercial space industry including 

7 observations, findings, and recommendations from 

8 the Commercial Space Transportation Advisory 

9 Committee, or its successor organization, prior to 

10 the issuance of a notice of proposed rulemaking. 

11 Such discussions shall not be construed to permit 

12 the Secretary to promulgate industry regulations ex13 cept as otherwise provided in this section.’’. 

14 SEC. 3. INTERNATIONAL LAUNCH COMPETITIVENESS. 

15 (a) PURPOSE.—The purpose of this section is to pro16 vide for updating the methodology used to calculate the 

17 maximum probable loss from claims under section 50914 

18 of title 51, United States Code, with a validated risk pro19 file approach to provide reasonable maximum probable 

20 loss values associated with potential third party losses 

21 from commercially licensed launches. An appropriately up22 dated methodology will help ensure that the Federal Gov23 ernment is not exposed to greater financial risks than in24 tended and that launch companies are not required to pur25 chase more insurance coverage than necessary. 

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1 (b) MAXIMUM PROBABLE LOSS PLAN.—Not later 

2 than 180 days after the date of enactment of this Act, 

3 the Secretary of Transportation shall provide to the Com4 mittee on Science, Space, and Technology of the House 

5 of Representatives and the Committee on Commerce, 

6 Science, and Transportation of the Senate a plan to up7 date the methodology used to calculate maximum probable 

8 loss from claims under section 50914 of title 51, United 

9 States Code, through the use of a validated risk profile 

10 approach. Such plan shall include, at a minimum— 

11 (1) an evaluation of the reasonableness of the 

12 current single casualty estimate and, if needed, the 

13 steps the Secretary will take to update such esti14 mate; 

15 (2) an evaluation, in consultation with the Ad16 ministrator of the National Aeronautics and Space 

17 Administration and the heads of other relevant exec18 utive agencies, of the reasonableness of the dollar 

19 value of the insurance requirement required by the 

20 Secretary for launch providers to cover damage to 

21 Government property resulting from a commercially 

22 licensed space launch activity, and recommendations 

23 as to a reasonable calculation if, as determined by 

24 the Secretary, the current statutory threshold is in25 sufficient; 

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1 (3) a schedule of when updates to the method2 ology and calculations for the totality of the Max3 imum Probable Loss will be implemented, and a de4 tailed explanation of any changes to the current cal5 culation; and 

6 (4) consideration of the impact of the cost of its 

7 implementation on the licensing process, both in 

8 terms of the cost to industry of collecting and pro9 viding the requisite data and cost to the Government 

10 of analyzing the data. 

11 (c) INDEPENDENT ASSESSMENT.—Not later than 

12 270 days after transmittal of the plan under subsection 

13 (b), the Comptroller General shall provide to the Com14 mittee on Science, Space, and Technology of the House 

15 of Representatives and the Committee on Commerce, 

16 Science, and Transportation of the Senate an assessment 

17 of— 

18 (1) the conclusions and analysis provided by the 

19 Secretary of Transportation in the plan required 

20 under subsection (b); 

21 (2) the implementation schedule proposed by 

22 the Secretary in such plan; 

23 (3) the suitability of the plan for implementa24 tion; and 

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1 (4) any further actions needed to implement the 

2 plan or otherwise accomplish the purpose of this sec3 tion. 

4 (d) LAUNCH LIABILITY EXTENSION.—Section 

5 50915(f) of title 51, United States Code, is amended by 

6 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

7 31, 2023’’. 

8 SEC. 4. LAUNCH LICENSE FLEXIBILITY. 

9 Section 50906 of title 51, United States Code, is 

10 amended— 

11 (1) in subsection (d), by striking ‘‘launched or 

12 reentered’’ and inserting ‘‘launched or reentered 

13 under that permit’’; 

14 (2) by amending subsection (d)(1) to read as 

15 follows: 

16 ‘‘(1) research and development to test design 

17 concepts, equipment, or operating techniques;’’; 

18 (3) in subsection (d)(3), by striking ‘‘prior to 

19 obtaining a license’’; 

20 (4) in subsection (e)(1), by striking ‘‘suborbital 

21 rocket design’’ and inserting ‘‘suborbital rocket or 

22 rocket design’’; and 

23 (5) by amending subsection (g) to read as fol24 lows: 

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1 ‘‘(g) The Secretary may issue a permit under this sec2 tion notwithstanding any license issued under this chapter. 

3 The issuance of a license under this chapter shall not in4 validate a permit under this section.’’. 

5 SEC. 5. GOVERNMENT ASTRONAUTS. 

6 (a) DEFINITIONS.—Section 50902 of title 51, United 

7 States Code, is amended— 

8 (1) by redesignating paragraphs (4) through 

9 (22) as paragraphs (5) through (23), respectively; 

10 (2) by inserting after paragraph (3) the fol11 lowing new paragraph: 

12 ‘‘(4) ‘government astronaut’ means an indi13 vidual designated as such by the Administrator of 

14 the National Aeronautics and Space Administration, 

15 pursuant requirements established by the Adminis16 trator, who— 

17 ‘‘(A) is an employee of— 

18 ‘‘(i) the United States Government, 

19 including the United States Armed Forces; 

20 or 

21 ‘‘(ii) a foreign government that is a 

22 party to the Intergovernmental Agreement 

23 Among the Government of Canada, Gov24 ernments of Member States of the Euro25 pean Space Agency, the Government of 

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1 Japan, the Government of the Russian 

2 Federation, and the Government of the 

3 United States of America Concerning Co4 operation on the Civil International Space 

5 Station, signed on January 29, 1998; and 

6 ‘‘(B) is carried within a launch vehicle or 

7 reentry vehicle in the course of his or her em8 ployment, which may include performance of ac9 tivities directly relating to the launch, reentry, 

10 or other operation of the launch vehicle or re11 entry vehicle.’’; 

12 (3) in paragraph (5), as so redesignated by 

13 paragraph (1) of this subsection, by inserting ‘‘gov14 ernment astronaut,’’ after ‘‘crew,’’; 

15 (4) in paragraph (7)(A), as so redesignated by 

16 paragraph (1) of this subsection, by inserting ‘‘gov17 ernment astronaut,’’ after ‘‘(including crew train18 ing),’’; 

19 (5) in paragraph (14), as so redesignated by 

20 paragraph (1) of this subsection, by inserting ‘‘gov21 ernment astronauts,’’ after ‘‘crew,’’; 

22 (6) in paragraph (15)(A), as so redesignated by 

23 paragraph (1) of this subsection, by inserting ‘‘gov24 ernment astronaut,’’ after ‘‘(including crew train25 ing),’’; 

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1 (7) by amending paragraph (18), as so redesig2 nated by paragraph (1) of this subsection, to read 

3 as follows: 

4 ‘‘(18) ‘space flight participant’ means an indi5 vidual, who is not crew or a government astronaut, 

6 carried within a launch vehicle or reentry vehicle.’’; 

7 and 

8 (8) in paragraph (22)(E), as so redesignated by 

9 paragraph (1) of this subsection, by inserting ‘‘, gov10 ernment astronauts,’’ after ‘‘crew’’. 

11 (b) RESTRICTIONS ON LAUNCHES, OPERATIONS, AND

12 REENTRIES; SINGLE LICENSE OR PERMIT.—Section 

13 50904(d) of title 51, United States Code, is amended by 

14 inserting ‘‘, government astronauts,’’ after ‘‘crew’’. 

15 (c) LICENSE APPLICATIONS AND REQUIREMENTS; 

16 APPLICATIONS.—Section 50905 of title 51, United States 

17 Code, is amended— 

18 (1) in subsection (a)(2), by striking ‘‘crews and 

19 space flight participants’’ and inserting ‘‘crew, gov20 ernment astronauts, and space flight participants’’; 

21 (2) in subsection (b)(2)(D), by inserting ‘‘, gov22 ernment astronauts,’’ after ‘‘crew’’; and 

23 (3) in subsection (c)— 

24 (A) in paragraph (1), by inserting ‘‘, gov25 ernment astronauts,’’ after ‘‘crew’’; and 

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1 (B) in paragraph (2), by striking ‘‘to crew 

2 or space flight participants’’ each place it ap3 pears and inserting ‘‘to crew, government astro4 nauts, or space flight participants’’. 

5 (d) MONITORING ACTIVITIES.—Section 50907(a) of 

6 title 51, United States Code, is amended by striking ‘‘crew 

7 or space flight participant training’’ and inserting ‘‘crew, 

8 government astronaut, or space flight participant train9 ing’’. 

10 (e) ADDITIONAL SUSPENSIONS.—Section 

11 50908(d)(1) of title 51, United States Code, is amended 

12 by striking ‘‘to crew or space flight participants’’ each 

13 place it appears and inserting ‘‘to crew, government astro14 nauts, or space flight participants’’. 

15 SEC. 6. INDEMNIFICATION FOR SPACE FLIGHT PARTICI16 PANTS. 

17 Chapter 509 of title 51, United States Code, is 

18 amended— 

19 (1) in section 50914(a)(4), by adding at the 

20 end the following: 

21 ‘‘(E) space flight participants.’’; and 

22 (2) in section 50915(a)(1)— 

23 (A) by striking ‘‘or a contractor’’ and in24 serting ‘‘a contractor’’; and 

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1 (B) by striking ‘‘but not against’’ and in2 serting ‘‘or’’. 

3 SEC. 7. FEDERAL JURISDICTION. 

4 Section 50914 of title 51, United States Code, is 

5 amended by adding at the end the following: 

6 ‘‘(g) FEDERAL JURISDICTION.—Any action or tort 

7 arising from a licensed launch or reentry shall be the sole 

8 jurisdiction of the Federal courts and shall be decided 

9 under Federal law.’’. 

10 SEC. 8. CROSS-WAIVERS. 

11 Section 50914(b)(1) of title 51, United States Code, 

12 is amended to read as follows: ‘‘(1) A launch or reentry 

13 license issued or transferred under this chapter shall con14 tain a provision requiring the licensee or transferee to 

15 make a reciprocal waiver of claims with its contractors, 

16 subcontractors, and customers, the contractors and sub17 contractors of the customers, and any space flight partici18 pants, involved in launch services or reentry services or 

19 participating in a flight under which each party to the 

20 waiver agrees to be responsible for property damage or 

21 loss it or they sustain, or for personal injury to, death 

22 of, or property damage or loss sustained by its own em23 ployees resulting from an activity carried out under the 

24 applicable license.’’. 

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1 SEC. 9. ORBITAL TRAFFIC MANAGEMENT. 

2 (a) SENSE OF CONGRESS.—It is the sense of the Con3 gress that, as none currently exists, there may be a need 

4 for a framework that addresses space traffic management 

5 of United States Government assets and United States 

6 private sector assets to minimize the proliferation of debris 

7 and decrease the congestion of the orbital environment. 

8 (b) STUDY REQUIRED.—Not later than 90 days after 

9 the date of enactment of this Act, the Administrator of 

10 the National Aeronautics and Space Administration shall 

11 enter into an arrangement with an independent, private 

12 systems engineering and technical assistance organization 

13 to study frameworks for the management of space traffic 

14 and orbital activities. The study shall include the fol15 lowing: 

16 (1) An assessment of current regulations, Gov17 ernment best practices, and industry standards that 

18 apply to space traffic management and orbital debris 

19 mitigation. 

20 (2) An assessment of current statutory author21 ity granted to the Federal Communications Commis22 sion, the Federal Aviation Administration, and the 

23 National Oceanic and Atmospheric Administration 

24 and how those agencies utilize and coordinate those 

25 authorities. 

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1 (3) A review of all space traffic management 

2 and orbital debris requirements under treaties and 

3 other international agreements to which the United 

4 States is a signatory, and other nonbinding inter5 national arrangements in which the United States 

6 participates, and the manner in which the Federal 

7 Government complies with those requirements. 

8 (4) An assessment of existing Federal Govern9 ment assets used to conduct space traffic manage10 ment and space situational awareness. 

11 (5) An assessment of the risk associated with 

12 smallsats as well as any necessary Government co13 ordination for their launch and utilization. 

14 (6) An assessment of existing private sector in15 formation sharing activities associated with space 

16 situational awareness and space traffic management. 

17 (7) Recommendations related to the framework 

18 for the protection of the health, safety, and welfare 

19 of the public and economic vitality of the space in20 dustry. 

21 (c) REPORT TO CONGRESS.—Not later than 1 year 

22 after the date of enactment of this Act, the Administrator 

23 shall provide to the Committee on Science, Space, and 

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1 mittee on Commerce, Science, and Transportation of the 

2 Senate the report required in subsection (b). 

3 (d) DEPARTMENT OF DEFENSE AUTHORITIES.— 

4 Congress recognizes the vital and unique role played by 

5 the Department of Defense in protecting national security 

6 assets in space. Nothing in this section shall be construed 

7 to amend authorities granted to the Department of De8 fense to safeguard the national security. 

9 SEC. 10. STATE COMMERCIAL LAUNCH FACILITIES. 

10 It is the Sense of Congress that State involvement, 

11 development, ownership, and operation of launch facilities 

12 can help enable growth of the Nation’s commercial sub13 orbital and orbital space endeavors and support both com14 mercial and Government space programs. It is further the 

15 sense of Congress that State launch facilities and the peo16 ple and property within the affected launch areas of those 

17 State facilities are subject to risks if the commercial 

18 launch vehicle fails or experiences an anomaly. To ensure 

19 the success of the commercial launch industry and the 

20 safety of the people and property in the affected launch 

21 areas, it is the further sense of Congress that States and 

22 State launch facilities should seek to take proper measures 

23 to secure their investments and the safety of third parties 

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1 from potential damages that could be suffered from com2 mercial launch activities. 

Æ 

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