H. R. 5382

One Hundred Eighth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twentieth day of January, two thousand and four

An Act

To promote the development of the emerging commercial human space flight industry, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Commercial Space Launch

Amendments Act of 2004’’.

SEC. 2. AMENDMENTS.

(a) FINDINGS AND PURPOSES.—Section 70101 of title 49, United

States Code, is amended—

(1) in subsection (a)(3), by inserting ‘‘human space flight,’’

after ‘‘microgravity research,’’;

(2) in subsection (a)(4)—

(A) by striking ‘‘satellite’’; and

(B) by striking ‘‘services now available from’’ and

inserting ‘‘capabilities of’’;

(3) in subsection (a)(8), by striking ‘‘and’’ at the end;

(4) in subsection (a)(9), by striking the period and inserting

a semicolon;

(5) by adding at the end of subsection (a) the following

new paragraphs:

‘‘(10) the goal of safely opening space to the American

people and their private commercial, scientific, and cultural

enterprises should guide Federal space investments, policies,

and regulations;

‘‘(11) private industry has begun to develop commercial

launch vehicles capable of carrying human beings into space

and greater private investment in these efforts will stimulate

the Nation’s commercial space transportation industry as a

whole;

‘‘(12) space transportation is inherently risky, and the

future of the commercial human space flight industry will

depend on its ability to continually improve its safety performance;

‘‘(13) a critical area of responsibility for the Department

of Transportation is to regulate the operations and safety of

the emerging commercial human space flight industry;

‘‘(14) the public interest is served by creating a clear legal,

regulatory, and safety regime for commercial human space

flight; and

‘‘(15) the regulatory standards governing human space

flight must evolve as the industry matures so that regulations
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neither stifle technology development nor expose crew or space

flight participants to avoidable risks as the public comes to

expect greater safety for crew and space flight participants

from the industry.’’;

(6) in subsection (b)(2)—

(A) by striking ‘‘and’’ at the end of subparagraph (A);

(B) by inserting ‘‘and’’ after the semicolon in subparagraph (B); and

(C) by adding at the end the following new subparagraph:

‘‘(C) promoting the continuous improvement of the

safety of launch vehicles designed to carry humans,

including through the issuance of regulations, to the extent

permitted by this chapter;’’; and

(7) in subsection (b)(3), by striking ‘‘issue and transfer’’

and inserting ‘‘issue permits and commercial licenses and

transfer’’.

(b) DEFINITIONS.—Section 70102 of title 49, United States Code,

is amended— (1) by redesignating paragraphs (2) through (17) as paragraphs (3), (4), (5), (6), (7), (8), (9), (10), (12), (13), (14), (15),

(16), (18), (21), and (22), respectively;

(2) by inserting after paragraph (1) the following new paragraph:

‘‘(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) in paragraph (4), as so redesignated by paragraph (1)

of this subsection, by inserting ‘‘, crew, or space flight participant’’ after ‘‘any payload’’;

(4) in paragraph (6)(A), as so redesignated by paragraph

(1) of this subsection, by striking ‘‘and payload’’ and inserting

‘‘, payload, crew (including crew training), or space flight participant’’;

(5) in paragraph (8)(A), as so redesignated by paragraph

(1) of this subsection, by inserting ‘‘or human beings’’ after

‘‘place a payload’’;

(6) by inserting after paragraph (10), as so redesignated

by paragraph (1) of this subsection, the following new paragraph:

‘‘(11) except in section 70104(c), ‘permit’ means an experimental permit issued under section 70105a.’’;

(7) in paragraph (13), as so redesignated by paragraph

(1) of this subsection, by inserting ‘‘crew, or space flight participants,’’ after ‘‘and its payload,’’;

(8) in paragraph (14)(A), as so redesignated by paragraph

(1) of this subsection, by striking ‘‘and its payload’’ inserting

‘‘and payload, crew (including crew training), or space flight

participant’’;

(9) by inserting after paragraph (16), as so redesignated

by paragraph (1) of this subsection, the following new paragraph: ‘‘(17) ‘space flight participant’ means an individual, who

is not crew, carried within a launch vehicle or reentry vehicle.’’;
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(10) by inserting after paragraph (18), as so redesignated

by paragraph (1) of this subsection, the following new paragraphs:

‘‘(19) unless and until regulations take effect under section

70120(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.

‘‘(20) ‘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.’’; and

(11) in paragraph (21), as so redesignated by paragraph

(1) of this subsection—

(A) by striking ‘‘or’’ at the end of subparagraph (C);

(B) by striking the period at the end of subparagraph

(D) and inserting ‘‘; or’’; and

(C) by adding at the end the following new subparagraph:

‘‘(E) crew or space flight participants.’’.

(c) COMMERCIAL HUMAN SPACE FLIGHT.—(1) Section 70103(b)(1)

of title 49, United States Code, is amended by inserting ‘‘, including

those involving space flight participants’’ after ‘‘private sector’’.

(2) Section 70103 of title 49, United States Code, is amended

by redesignating subsection (c) as subsection (d), and by inserting

after subsection (b) the following new subsection:

‘‘(c) SAFETY.—In carrying out the responsibilities under subsection (b), the Secretary shall encourage, facilitate, and promote

the continuous improvement of the safety of launch vehicles

designed to carry humans, and the Secretary may, consistent with

this chapter, promulgate regulations to carry out this subsection.’’.

(3) Section 70104(a) of title 49, United States Code, is

amended—

(A) by striking ‘‘License Requirement.—A license issued

or transferred under this chapter’’ and inserting ‘‘Requirement.—A license issued or transferred under this chapter, or

a permit,’’; and

(B) by inserting after paragraph (4) the following: ‘‘Notwithstanding this subsection, a permit shall not authorize a person

to operate a launch site or reentry site.’’.

(4) Section 70104(b) of title 49, United States Code, is amended

by inserting ‘‘or permit’’ after ‘‘holder of a license’’.

(5) Section 70104 of title 49, United States Code, is amended

by adding at the end the following new subsection:

‘‘(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 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.’’.

(6) Section 70105(a) of title 49, United States Code, is

amended—

(A) in paragraph (1), by striking ‘‘a license is not issued’’

and inserting ‘‘the Secretary has not taken action on a license

application’’; and
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(B) in paragraph (2), by inserting ‘‘(including approval

procedures for the purpose of protecting the health and safety

of crews and space flight participants, to the extent permitted

by subsections (b) and (c))’’ after ‘‘or personnel’’.

(7) Section 70105(b)(1) of title 49, United States Code, is

amended by inserting ‘‘or permit’’ after ‘‘for a license’’.

(8) Section 70105(b)(2)(B) of title 49, United States Code, is

amended by striking ‘‘an additional requirement necessary to protect’’ and inserting ‘‘any additional requirement necessary to protect’’.

(9) Section 70105(b)(2)(C) of title 49, United States Code, is

amended—

(A) by inserting ‘‘or permit’’ after ‘‘for a license’’; and

(B) by striking ‘‘and’’ at the end thereof.

(10) Section 70105(b)(2) of title 49, United States Code, is

amended by redesignating subparagraph (D) as subparagraph (E)

and inserting after subparagraph (C) the following new subparagraph:

‘‘(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 or space

flight participants, only if such requirements are imposed

pursuant to final regulations issued in accordance with

subsection (c); and’’.

(11) Section 70105(b)(2)(E) of title 49, United States Code,

as so redesignated by paragraph (11) of this subsection, is amended

by inserting ‘‘or permit’’ after ‘‘for a license’’.

(12) Section 70105(b)(3) of title 49, United States Code, is

amended by adding at the end the following: ‘‘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 without

a license or permit if a human being will be on board.’’.

(13) Section 70105(b) of title 49, United States Code, is amended

by adding at the end the following new paragraphs:

‘‘(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
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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 70112(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.’’.

(14) Section 70105 of title 49, United States Code, is amended

by redesignating subsection (c) as subsection (d), and by adding

after subsection (b) the following new subsection:

‘‘(c) SAFETY REGULATIONS.—(1) The Secretary may issue regulations governing the design or operation of a launch vehicle to

protect the health and safety of crew and space flight participants.

‘‘(2) 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 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
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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 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) Beginning 8 years after the date of enactment of the

Commercial Space Launch Amendments Act of 2004, the Secretary may propose regulations under this subsection without

regard to paragraph (2)(C) and (D). Any such regulations shall

take into consideration the evolving standards of safety in

the commercial space flight industry.

‘‘(4) 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.’’.

(15) Section 70105(d) of title 49, United States Code, as so

redesignated by paragraph (15) of this subsection, is amended by

inserting ‘‘or permit’’ after ‘‘of a license’’.

(16) Chapter 701 of title 49, United States Code, is amended

by inserting after section 70105 the following new section:

‘‘§ 70105a. 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 70105(b)(2)(C).

‘‘(d) The Secretary may issue a permit only for reusable suborbital rockets that will be launched or reentered solely for—

‘‘(1) research and development to test new design concepts,

new equipment, or new operating techniques;
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‘‘(2) showing compliance with requirements as part of the

process for obtaining a license under this chapter; or

‘‘(3) crew training prior to obtaining a license for a launch

or reentry using the design of the rocket for which the permit

would be issued.

‘‘(e) Permits issued under this section shall—

‘‘(1) authorize an unlimited number of launches and

reentries for a particular suborbital rocket design for the uses

described in subsection (d); and

‘‘(2) specify the type of modifications that may be made

to the suborbital rocket without changing the design to an

extent that would invalidate the permit.

‘‘(f) Permits shall not be transferable.

‘‘(g) A permit may not be issued for, and a permit that has

already been issued shall cease to be valid for, a particular design

for a reusable suborbital rocket after a license has been issued

for the launch or reentry of a rocket of that design.

‘‘(h) No person may operate a reusable suborbital rocket under

a permit for carrying any property or human being for compensation

or hire.

‘‘(i) For the purposes of sections 70106, 70107, 70108, 70109,

70110, 70112, 70115, 70116, 70117, and 70121 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.’’.

(17) Section 70106(a) of title 49, United States Code, is

amended—

(A) by inserting ‘‘at a site used for crew or space flight

participant training,’’ after ‘‘assemble a launch vehicle or

reentry vehicle,’’; and

(B) by striking ‘‘section 70104(c)’’ and inserting ‘‘sections

70104(c), 70105, and 70105a’’.

(18) Section 70107(b) of title 49, United States Code, is

amended—

(A) by inserting ‘‘(1)’’ before ‘‘On the initiative’’; and

(B) by adding the following new paragraph at the end:

‘‘(2) The Secretary shall modify a license issued or transferred under this chapter whenever a modification is needed

for the license to be in conformity with a regulation that was

issued pursuant to section 70105(c) after the issuance of the

license. This paragraph shall not apply to permits.’’.

(19) Section 70107 of title 49, United States Code, is amended

by redesignating subsections (d) and (e) as subsections (e) and

(f), respectively, and by inserting after subsection (c) the following

new subsection:

‘‘(d) ADDITIONAL SUSPENSIONS.—(1) The Secretary may suspend

a license when a previous launch or reentry under the license

has resulted in a serious or fatal injury (as defined in 49 CFR

830, as in effect on November 10, 2004) to crew or space flight

participants and the Secretary has determined that continued operations under the license are likely to cause additional serious or

fatal injury (as defined in 49 CFR 830, as in effect on November

10, 2004) to crew or space flight participants.
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‘‘(2) Any suspension imposed under this subsection shall

be for as brief a period as possible and, in any event, shall

cease when the Secretary—

‘‘(A) has determined that the licensee has taken sufficient steps to reduce the likelihood of a recurrence of the

serious or fatal injury; or

‘‘(B) has modified the license pursuant to subsection

(b) to sufficiently reduce the likelihood of a recurrence

of the serious or fatal injury.

‘‘(3) This subsection shall not apply to permits.’’.

(20) Section 70110(a)(1) of title 49, United States Code, is

amended by inserting ‘‘or 70105a’’ after ‘‘70105(a)’’.

(21) Section 70112(b)(2) of title 49, United States Code, is

amended—

(A) by inserting ‘‘crew, space flight participants,’’ after

‘‘transferee, contractors, subcontractors,’’; and

(B) by inserting ‘‘or by space flight participants,’’ after

‘‘its own employees’’.

(22) Section 70113(a)(1) of title 49, United States Code, is

amended by inserting ‘‘but not against a space flight participant,’’

after ‘‘subcontractor of a customer,’’.

(23) Section 70113(f) of title 49, United States Code, is amended

by inserting at the end the following: ‘‘This section does not apply

to permits.’’.

(24) Section 70115(b)(1)(D)(i) of title 49, United States Code,

is amended by inserting ‘‘crew or space flight participant training

site,’’ after ‘‘site of a launch vehicle or reentry vehicle,’’.

(25) Section 70120 of title 49, United States Code, is amended

by adding at the end the following new subsections:

‘‘(c) AMENDMENTS.—(1) Not later than 12 months after the

date of enactment of the Commercial Space Launch Amendments

Act of 2004, the Secretary shall publish proposed regulations to

carry out that Act, including regulations relating to crew, space

flight participants, and permits for launch or reentry of reusable

suborbital rockets. Not later than 18 months after such date of

enactment, the Secretary shall issue final regulations.

‘‘(2)(A) Starting 3 years after the date of enactment of

the Commercial Space Launch Amendments Act of 2004, the

Secretary may issue final regulations changing the definition

of suborbital rocket under this chapter. No such regulation

may take effect until 180 days after the Secretary has submitted

the regulation to the Congress.

‘‘(B) The Secretary may issue regulations under this paragraph only if the Secretary has determined that the definition

in section 70102 does not describe, or will not continue to

describe, all appropriate vehicles and only those vehicles. In

making that determination, the Secretary shall take into

account the evolving nature of the commercial space launch

industry.

‘‘(d) EFFECTIVE DATE.—(1) Licenses for the launch or reentry

of launch vehicles or reentry vehicles with human beings on board

and permits may be issued by the Secretary prior to the issuance

of the regulations described in subsection (c).

‘‘(2) As soon as practicable after the date of enactment

of the Commercial Space Launch Amendments Act of 2004,

the Secretary shall issue guidelines or advisory circulars to
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guide the implementation of that Act until regulations are

issued.

‘‘(3) Notwithstanding paragraphs (1) and (2), no licenses

for the launch or reentry of launch vehicles or reentry vehicles

with human beings on board or permits may be issued starting

three years after the date of enactment of the Commercial

Space Launch Amendments Act of 2004 unless the final regulations described in subsection (c) have been issued.’’.

(26) The table of sections for chapter 701 of title 49, United

States Code, is amended by inserting after the item relating to

70105 the following new item:

‘‘70105a. Experimental permits.’’.

SEC. 3. STUDIES.

(a) RISK SHARING.—Not later than 60 days after the date of

enactment of this Act, the Secretary of Transportation shall enter

into an arrangement with a nonprofit entity for the conduct of

an independent comprehensive study of the liability risk sharing

regime in the United States for commercial space transportation

under section 70113 of title 49, United States Code. To ensure

that Congress has a full analysis of the liability risk sharing regime,

the study shall assess methods by which the current system could

be eliminated, including an estimate of the time required to implement each of the methods assessed. The study shall assess whether

any alternative steps would be needed to maintain a viable and

competitive United States space transportation industry if the current regime were eliminated. In conducting the assessment under

this subsection, input from commercial space transportation insurance experts shall be sought. The study also shall examine liability

risk sharing in other nations with commercial launch capability

and evaluate the direct and indirect impact that ending this regime

would have on the competitiveness of the United States commercial

space launch industry in relation to foreign commercial launch

providers and on United States assured access to space.

(b) SAFETY.—The Secretary of Transportation, in consultation

with the Administrator of the National Aeronautics and Space

Administration, shall enter into an arrangement with a nonprofit

entity for a report analyzing safety issues related to launching

human beings into space. In designing the study, the Secretary

should take into account any recommendations from the Commercial

Space Transportation Advisory Committee and the National Aeronautics and Space Administration’s Aerospace Safety Advisory

Panel. The report shall be submitted to the Senate Committee

on Commerce, Science, and Transportation and the House of Representatives Committee on Science within 4 years of the date of

enactment of this Act. The report shall analyze and make recommendations about—

(1) the standards of safety and concepts of operation that

should guide the regulation of human space flight and whether

the standard of safety should vary by class or type of vehicle,

the purpose of flight, or other considerations;

(2) the effectiveness of the commercial licensing and permitting regime under chapter 701 of title 49, United States Code,

particularly in ensuring the safety of the public and of crew

and space flight participants during launch, in-space transit,

orbit, and reentry, and whether any changes are needed to

that chapter;
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(3) whether there is a need for commercial ground operations for commercial space flight, including provision of launch

support, launch and reentry control, mission control, range

operations, and communications and telemetry operations

through all phases of flight, and if such operations developed,

whether and how they should be regulated;

(4) whether expendable and reusable launch and reentry

vehicles should be regulated differently from each other, and

whether either of those vehicles should be regulated differently

when carrying human beings;

(5) whether the Federal Government should separate the

promotion of human space flight from the regulation of such

activity;

(6) how third parties could be used to evaluate the qualification and acceptance of new human space flight vehicles prior

to their operation;

(7) how nongovernment experts could participate more fully

in setting standards and developing regulations concerning

human space flight safety; and

(8) whether the Federal Government should regulate the

extent of foreign ownership or control of human space flight

companies operating or incorporated in the United States.

SEC. 4. TECHNICAL AMENDMENT.

Section 102(c) of the Commercial Space Act of 1998 is repealed.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.