‘‘(B) apply only to launches in which a ve-
hicle will be carrying a human being for com-
pensation 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 ef-
fect 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 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 in-
stance 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 enact-
ment 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 con-
strued to limit the authority of the Secretary to
issue requirements or regulations to protect the pub-
lic health and safety, safety of property, national se-
curity 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 sub-
section, 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 Trans-
portation for an experimental permit under this section
in the form and manner the Secretary prescribes. Con-
sistent 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 appli-
cant 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 Sec-
retary 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, serv-
ices, or personnel that may be used in conducting commer-
cial space launch or reentry activities pursuant to a per-
mit.
‘‘(c) In order to encourage the development of a com-
mercial 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 reus-
able suborbital rockets that will be launched or reentered
solely for—
‘‘(1) research and development to test new de-
sign concepts, new equipment, or new operating
techniques;
‘‘(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 rock-
et 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 de-
sign 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 consid-
ered 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 insert-
ing ‘‘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 initia-
tive’’; 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 modi-
fication is needed for the license to be in conformity
with a regulation that was issued pursuant to sec-
tion 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 Sec-
retary 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.
‘‘(2) Any suspension imposed under this sub-
section 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 likeli-
hood of a recurrence of the serious or fatal in-
jury.
‘‘(3) This subsection shall not apply to per-
mits.’’.
(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 partici-
pants,’’ after ‘‘transferee, contractors, subcontrac-
tors,’’; and
(B) by inserting ‘‘or by space flight partici-
pants,’’ 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 sub-
sections:
‘‘(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, includ-
ing 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 en-
actment, the Secretary shall issue final regulations.
‘‘(2)(A) Starting 3 years after the date of en-
actment of the Commercial Space Launch Amend-
ments 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 de-
termined that the definition in section 70102 does
not describe, or will not continue to describe, all ap-
propriate vehicles and only those vehicles. In making
that determination, the Secretary shall take into ac-
count 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 de-
scribed in subsection (c).
‘‘(2) As soon as practicable after the date of en-
actment of the Commercial Space Launch Amend-
ments Act of 2004, the Secretary shall issue guide-
lines or advisory circulars to guide the implementa-
tion of that Act until regulations are issued.
‘‘(3) Notwithstanding paragraphs (1) and (2),
no licenses for the launch or reentry of launch vehi-
cles 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 Transpor-
tation 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 cur-
rent system could be eliminated, including an estimate of
the time required to implement each of the methods as-
sessed. The study shall assess whether any alternative
steps would be needed to maintain a viable and competi-
tive United States space transportation industry if the
current regime were eliminated. In conducting the assess-
ment under this subsection, input from commercial space
transportation insurance experts shall be sought. The
study also shall examine liability risk sharing in other na-
tions with commercial launch capability and evaluate the
direct and indirect impact that ending this regime would
have on the competitiveness of the United States commer-
cial space launch industry in relation to foreign commer-
cial launch providers and on United States assured access
to space.
(b) SAFETY.—The Secretary of Transportation, in
consultation with the Administrator of the National Aero-
nautics and Space Administration, shall enter into an ar-
rangement 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 Na-
tional Aeronautics and Space Administration’s Aerospace
Safety Advisory Panel. The report shall be submitted to
the Senate Committee on Commerce, Science, and Trans-
portation 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 op-
eration 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 par-
ticipants during launch, in-space transit, orbit, and
reentry, and whether any changes are needed to that
chapter;
(3) whether there is a need for commercial
ground operations for commercial space flight, in-
cluding provision of launch support, launch and re-
entry 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 partici-
pate 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 incor-
porated in the United States.
SEC. 4. TECHNICAL AMENDMENT.
Section 102(c) of the Commercial Space Act of 1998
is repealed.
Passed the House of Representatives November 20,
2004.
Attest:
Clerk.