105TH CONGRESS
2D SESSION
H.R. 1702
AMENDMENT
TO
SENATE AMENDMENT
In the House of Representatives, U. S.,
October 5, 1998.
Resolved, That the House agree to the amendment of the
Senate to the bill (H.R. 1702) entitled ‘‘An Act to encourage
the development of a commercial space industry in the United
States, and for other purposes’’, with the following
AMENDMENT:
In lieu of the matter proposed to be inserted by the
Senate amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Commercial Space Act of 1998’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I—PROMOTION OF COMMERCIAL SPACE OPPORTUNITIES
Sec. 101. Commercialization of Space Station.
Sec. 102. Commercial space launch amendments.
Sec. 103. Launch voucher demonstration program.
Sec. 104. Promotion of United States Global Positioning System standards.
Sec. 105. Acquisition of space science data.
Sec. 106. Administration of Commercial Space Centers.
Sec. 107. Sources of Earth science data.
TITLE II—FEDERAL ACQUISITION OF SPACE TRANSPORTATION
SERVICES
Sec. 201. Requirement to procure commercial space transportation services.
Sec. 202. Acquisition of commercial space transportation services.
Sec. 203. Launch Services Purchase Act of 1990 amendments.
Sec. 204. Shuttle privatization.
Sec. 205. Use of excess intercontinental ballistic missiles.
Sec. 206. National launch capability study.
SEC. 2. DEFINITIONS.
For purposes of this Act—
(1) the term ‘‘Administrator’’ means the Admin-
istrator of the National Aeronautics and Space Ad-
ministration;
(2) the term ‘‘commercial provider’’ means any
person providing space transportation services or
other space-related activities, primary control of
which is held by persons other than Federal, State,
local, and foreign governments;
(3) the term ‘‘payload’’ means anything that a
person undertakes to transport to, from, or within
outer space, or in suborbital trajectory, by means of
a space transportation vehicle, but does not include
the space transportation vehicle itself except for its
components which are specifically designed or adapt-
ed for that payload;
(4) the term ‘‘space-related activities’’ includes
research and development, manufacturing, processing,
service, and other associated and support activities;
(5) the term ‘‘space transportation services’’
means the preparation of a space transportation vehi-
cle and its payloads for transportation to, from, or
within outer space, or in suborbital trajectory, and
the conduct of transporting a payload to, from, or
within outer space, or in suborbital trajectory;
(6) the term ‘‘space transportation vehicle’’
means any vehicle constructed for the purpose of oper-
ating in, or transporting a payload to, from, or with-
in, outer space, or in suborbital trajectory, and in-
cludes any component of such vehicle not specifically
designed or adapted for a payload;
(7) the term ‘‘State’’ means each of the several
States of the Union, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and any other common-
wealth, territory, or possession of the United States;
and
(8) the term ‘‘United States commercial pro-
vider’’ means a commercial provider, organized under
the laws of the United States or of a State, which is—
(A) more than 50 percent owned by United
States nationals; or
(B) a subsidiary of a foreign company and
the Secretary of Transportation finds that—
(i) such subsidiary has in the past evi-
denced a substantial commitment to the
United States market through—
(I) investments in the United
States in long-term research, develop-
ment, and manufacturing (including
the manufacture of major components
and subassemblies); and
(II) significant contributions to
employment in the United States; and
(ii) the country or countries in which
such foreign company is incorporated or or-
ganized, and, if appropriate, in which it
principally conducts its business, affords re-
ciprocal treatment to companies described
in subparagraph (A) comparable to that af-
forded to such foreign company’s subsidiary
in the United States, as evidenced by—
(I) providing comparable oppor-
tunities for companies described in
subparagraph (A) to participate in
Government sponsored research and de-
velopment similar to that authorized
under this Act;
(II) providing no barriers, to
companies described in subparagraph
(A) with respect to local investment op-
portunities, that are not provided to
foreign 
companies 
in 
the 
United
States; and
(III) providing adequate and ef-
fective protection for the intellectual
property rights of companies described
in subparagraph (A).
TITLE I—PROMOTION OF COM-
MERCIAL SPACE OPPORTUNI-
TIES
SEC. 101. COMMERCIALIZATION OF SPACE STATION.
(a) POLICY.—The Congress declares that a priority
goal of constructing the International Space Station is the
economic development of Earth orbital space. The Congress
further declares that free and competitive markets create the
most efficient conditions for promoting economic develop-
ment, and should therefore govern the economic development
of Earth orbital space. The Congress further declares that
the use of free market principles in operating, servicing,
allocating the use of, and adding capabilities to the Space
Station, and the resulting fullest possible engagement of
commercial providers and participation of commercial
users, will reduce Space Station operational costs for all
partners and the Federal Government’s share of the United
States burden to fund operations.
(b) REPORTS.—(1) The Administrator shall deliver to
the Committee on Science of the House of Representatives
and the Committee on Commerce, Science, and Transpor-
tation of the Senate, within 90 days after the date of the
enactment of this Act, a study that identifies and exam-
ines—
(A) the opportunities for commercial providers to
play a role in International Space Station activities,
including operation, use, servicing, and augmenta-
tion;
(B) the potential cost savings to be derived from
commercial providers playing a role in each of these
activities;
(C) which of the opportunities described in sub-
paragraph (A) the Administrator plans to make
available to commercial providers in fiscal years 1999
and 2000;
(D) the specific policies and initiatives the Ad-
ministrator is advancing to encourage and facilitate
these commercial opportunities; and
(E) the revenues and cost reimbursements to the
Federal Government from commercial users of the
Space Station.
(2) The Administrator shall deliver to the Committee
on Science of the House of Representatives and the Commit-
tee on Commerce, Science, and Transportation of the Sen-
ate, within 180 days after the date of the enactment of this
Act, an independently-conducted market study that exam-
ines and evaluates potential industry interest in providing
commercial goods and services for the operation, servicing,
and augmentation of the International Space Station, and
in the commercial use of the International Space Station.
This study shall also include updates to the cost savings
and revenue estimates made in the study described in para-
graph (1) based on the external market assessment.
(3) The Administrator shall deliver to the Congress,
no later than the submission of the President’s annual budg-
et request for fiscal year 2000, a report detailing how many
proposals (whether solicited or not) the National Aero-
nautics and Space Administration received during cal-
endar years 1997 and 1998 regarding commercial oper-
ation, servicing, utilization, or augmentation of the Inter-
national Space Station, broken down by each of these four
categories, and specifying how many agreements the Na-
tional Aeronautics and Space Administration has entered
into in response to these proposals, also broken down by
these four categories.
(4) Each of the studies and reports required by para-
graphs (1), (2), and (3) shall include consideration of the
potential role of State governments as brokers in promoting
commercial participation in the International Space Sta-
tion program.
SEC. 102. COMMERCIAL SPACE LAUNCH AMENDMENTS.
(a) AMENDMENTS.—Chapter 701 of title 49, United
States Code, is amended—
(1) in the table of sections—
(A) by amending the item relating to sec-
tion 70104 to read as follows:
‘‘70104. Restrictions on launches, operations, and reentries.’’;
(B) by amending the item relating to sec-
tion 70108 to read as follows:
‘‘70108. Prohibition, suspension, and end of launches, operation of launch sites
and reentry sites, and reentries.’’;
(C) by amending the item relating to sec-
tion 70109 to read as follows:
‘‘70109. Preemption of scheduled launches or reentries.’’;
and
(D) by adding at the end the following new
items:
‘‘70120. Regulations.
‘‘70121. Report to Congress.’’.
(2) in section 70101—
(A) by inserting ‘‘microgravity research,’’
after ‘‘information services,’’ in subsection (a)(3);
(B) by inserting ‘‘, reentry,’’ after ‘‘launch-
ing’’ both places it appears in subsection (a)(4);
(C) by inserting ‘‘, reentry vehicles,’’ after
‘‘launch vehicles’’ in subsection (a)(5);
(D) by inserting ‘‘and reentry services’’
after ‘‘launch services’’ in subsection (a)(6);
(E) 
by 
inserting 
‘‘, 
reentries,’’ 
after
‘‘launches’’ both places it appears in subsection
(a)(7);
(F) by inserting ‘‘, reentry sites,’’ after
‘‘launch sites’’ in subsection (a)(8);
(G) by inserting ‘‘and reentry services’’
after ‘‘launch services’’ in subsection (a)(8);
(H) by inserting ‘‘reentry sites,’’ after
‘‘launch sites,’’ in subsection (a)(9);
(I) by inserting ‘‘and reentry site’’ after
‘‘launch site’’ in subsection (a)(9);
(J) by inserting ‘‘, reentry vehicles,’’ after
‘‘launch vehicles’’ in subsection (b)(2);
(K) by striking ‘‘launch’’ in subsection
(b)(2)(A);
(L) by inserting ‘‘and reentry’’ after ‘‘con-
duct of commercial launch’’ in subsection (b)(3);
(M) by striking ‘‘launch’’ after ‘‘and trans-
fer commercial’’ in subsection (b)(3); and
(N) by inserting ‘‘and development of re-
entry sites,’’ after ‘‘launch-site support facili-
ties,’’ in subsection (b)(4);
(3) in section 70102—
(A) in paragraph (3)—
(i) by striking ‘‘and any payload’’ and
inserting in lieu thereof ‘‘or reentry vehicle
and any payload from Earth’’;
(ii) by striking the period at the end of
subparagraph (C) and inserting in lieu
thereof a comma; and
(iii) by adding after subparagraph (C)
the following:
‘‘including activities involved in the preparation of a
launch vehicle or payload for launch, when those ac-
tivities take place at a launch site in the United
States.’’;
(B) by inserting ‘‘or reentry vehicle’’ after
‘‘means of a launch vehicle’’ in paragraph (8);
(C) by redesignating paragraphs (10), (11),
and (12) as paragraphs (14), (15), and (16), re-
spectively;
(D) by inserting after paragraph (9) the fol-
lowing new paragraphs:
‘‘(10) ‘reenter’ and ‘reentry’ mean to return or
attempt to return, purposefully, a reentry vehicle and
its payload, if any, from Earth orbit or from outer
space to Earth.
‘‘(11) ‘reentry services’ means—
‘‘(A) activities involved in the preparation
of a reentry vehicle and its payload, if any, for
reentry; and
‘‘(B) the conduct of a reentry.
‘‘(12) ‘reentry site’ means the location on Earth
to which a reentry vehicle is intended to return (as
defined in a license the Secretary issues or transfers
under this chapter).
‘‘(13) ‘reentry vehicle’ means a vehicle designed
to return from Earth orbit or outer space to Earth,
or a reusable launch vehicle designed to return from
Earth orbit or outer space to Earth, substantially in-
tact.’’; and
(E) by inserting ‘‘or reentry services’’ after
‘‘launch services’’ each place it appears in para-
graph (15), as so redesignated by subparagraph
(C) of this paragraph;
(4) in section 70103(b)—
(A) by inserting ‘‘AND REENTRIES’’ after
‘‘LAUNCHES’’ in the subsection heading;
(B) by inserting ‘‘and reentries’’ after
‘‘commercial space launches’’ in paragraph (1);
and
(C) by inserting ‘‘and reentry’’ after ‘‘space
launch’’ in paragraph (2);
(5) in section 70104—
(A) by amending the section designation
and heading to read as follows:
‘‘§ 70104. Restrictions on launches, operations, and re-
entries’’;
(B) by inserting ‘‘or reentry site, or to reen-
ter a reentry vehicle,’’ after ‘‘operate a launch
site’’ each place it appears in subsection (a);
(C) by inserting ‘‘or reentry’’ after ‘‘launch
or operation’’ in subsection (a)(3) and (4);
(D) in subsection (b)—
(i) by striking ‘‘launch license’’ and
inserting in lieu thereof ‘‘license’’;
(ii) by inserting ‘‘or reenter’’ after
‘‘may launch’’; and
(iii) by inserting ‘‘or reentering’’ after
‘‘related to launching’’; and
(E) in subsection (c)—
(i) by amending the subsection heading
to read as follows: ‘‘PREVENTING LAUNCHES
AND REENTRIES.—’’;
(ii) by inserting ‘‘or reentry’’ after
‘‘prevent the launch’’; and
(iii) by inserting ‘‘or reentry’’ after
‘‘decides the launch’’;
(6) in section 70105—
(A) by inserting ‘‘(1)’’ before ‘‘A person
may apply’’ in subsection (a);
(B) by striking ‘‘receiving an application’’
both places it appears in subsection (a) and in-
serting in lieu thereof ‘‘accepting an application
in accordance with criteria established pursuant
to subsection (b)(2)(D)’’;
(C) by adding at the end of subsection (a)
the following: ‘‘The Secretary shall transmit to
the Committee on Science of the House of Rep-
resentatives and the Committee on Commerce,
Science, and Transportation of the Senate a
written notice not later than 30 days after any
occurrence when a license is not issued within
the deadline established by this subsection.
‘‘(2) In carrying out paragraph (1), the Secretary may
establish procedures for safety approvals of launch vehicles,
reentry vehicles, safety systems, processes, services, or per-
sonnel that may be used in conducting licensed commercial
space launch or reentry activities.’’;
(D) by inserting ‘‘or a reentry site, or the
reentry of a reentry vehicle,’’ after ‘‘operation of
a launch site’’ in subsection (b)(1);
(E) by striking ‘‘or operation’’ and insert-
ing in lieu thereof ‘‘, operation, or reentry’’ in
subsection (b)(2)(A);
(F) by striking ‘‘and’’ at the end of sub-
section (b)(2)(B);
(G) by striking the period at the end of sub-
section (b)(2)(C) and inserting in lieu thereof ‘‘;
and’’;
(H) by adding at the end of subsection
(b)(2) the following new subparagraph:
‘‘(D) regulations establishing criteria for accept-
ing or rejecting an application for a license under
this chapter within 60 days after receipt of such ap-
plication.’’; and
(I) by inserting ‘‘, including the require-
ment to obtain a license,’’ after ‘‘waive a require-
ment’’ in subsection (b)(3);
(7) in section 70106(a)—
(A) by inserting ‘‘or reentry site’’ after ‘‘ob-
server at a launch site’’;
(B) by inserting ‘‘or reentry vehicle’’ after
‘‘assemble a launch vehicle’’; and
(C) by inserting ‘‘or reentry vehicle’’ after
‘‘with a launch vehicle’’;
(8) in section 70108—
(A) by amending the section designation
and heading to read as follows:
‘‘§ 70108. 
Prohibition, 
suspension, 
and 
end 
of
launches, operation of launch sites and
reentry sites, and reentries’’;
and
(B) in subsection (a)—
(i) by inserting ‘‘or reentry site, or re-
entry of a reentry vehicle,’’ after ‘‘operation
of a launch site’’; and
(ii) by inserting ‘‘or reentry’’ after
‘‘launch or operation’’;
(9) in section 70109—
(A) by amending the section designation
and heading to read as follows:
‘‘§ 70109. Preemption of scheduled launches or reen-
tries’’;
(B) in subsection (a)—
(i) by inserting ‘‘or reentry’’ after ‘‘en-
sure that a launch’’;
(ii) by inserting ‘‘, reentry site,’’ after
‘‘United States Government launch site’’;
(iii) by inserting ‘‘or reentry date com-
mitment’’ after ‘‘launch date commitment’’;
(iv) by inserting ‘‘or reentry’’ after
‘‘obtained for a launch’’;
(v) by inserting ‘‘, reentry site,’’ after
‘‘access to a launch site’’;
(vi) by inserting ‘‘, or services related
to a reentry,’’ after ‘‘amount for launch
services’’; and
(vii) by inserting ‘‘or reentry’’ after
‘‘the scheduled launch’’; and
(C) in subsection (c), by inserting ‘‘or re-
entry’’ after ‘‘prompt launching’’;
(10) in section 70110—
(A) by inserting ‘‘or reentry’’ after ‘‘prevent
the launch’’ in subsection (a)(2); and
(B) by inserting ‘‘or reentry site, or reentry
of a reentry vehicle,’’ after ‘‘operation of a
launch site’’ in subsection (a)(3)(B);
(11) in section 70111—
(A) 
by 
inserting 
‘‘or 
reentry’’ 
after
‘‘launch’’ in subsection (a)(1)(A);
(B) by inserting ‘‘and reentry services’’
after ‘‘launch services’’ in subsection (a)(1)(B);
(C) by inserting ‘‘or reentry services’’ after
‘‘or launch services’’ in subsection (a)(2);
(D) by striking ‘‘source.’’ in subsection
(a)(2) and inserting ‘‘source, whether such source
is located on or off a Federal range.’’;
(E) by inserting ‘‘or reentry’’ after ‘‘com-
mercial launch’’ both places it appears in sub-
section (b)(1);
(F) by inserting ‘‘or reentry services’’ after
‘‘launch services’’ in subsection (b)(2)(C);
(G) by inserting after subsection (b)(2) the
following new paragraph:
‘‘(3) The Secretary shall ensure the establishment of
uniform guidelines for, and consistent implementation of,
this section by all Federal agencies.’’;
(H) by striking ‘‘or its payload for launch’’
in subsection (d) and inserting in lieu thereof
‘‘or reentry vehicle, or the payload of either, for
launch or reentry’’; and
(I) by inserting ‘‘, reentry vehicle,’’ after
‘‘manufacturer of the launch vehicle’’ in sub-
section (d);
(12) in section 70112—
(A) in subsection (a)(1), by inserting
‘‘launch or reentry’’ after ‘‘(1) When a’’;
(B) by inserting ‘‘or reentry’’ after ‘‘one
launch’’ in subsection (a)(3);
(C) by inserting ‘‘or reentry services’’ after
‘‘launch services’’ in subsection (a)(4);
(D) in subsection (b)(1), by inserting
‘‘launch or reentry’’ after ‘‘(1) A’’;
(E) by inserting ‘‘or reentry services’’ after
‘‘launch services’’ each place it appears in sub-
section (b);
(F) by inserting ‘‘applicable’’ after ‘‘carried
out under the’’ in paragraphs (1) and (2) of sub-
section (b);
(G) by inserting ‘‘OR REENTRIES’’ after
‘‘LAUNCHES’’ in the heading for subsection (e);
(H) by inserting ‘‘or reentry site or a re-
entry’’ after ‘‘launch site’’ in subsection (e); and
(I) in subsection (f), by inserting ‘‘launch
or reentry’’ after ‘‘carried out under a’’;
(13) in section 70113(a)(1) and (d)(1) and (2),
by inserting ‘‘or reentry’’ after ‘‘one launch’’ each
place it appears;
(14) in section 70115(b)(1)(D)(i)—
(A) by inserting ‘‘reentry site,’’ after
‘‘launch site,’’; and
(B) by inserting ‘‘or reentry vehicle’’ after
‘‘launch vehicle’’ both places it appears;
(15) in section 70117—
(A) by inserting ‘‘or reentry site, or to reen-
ter a reentry vehicle’’ after ‘‘operate a launch
site’’ in subsection (a);
(B) by inserting ‘‘or reentry’’ after ‘‘ap-
proval of a space launch’’ in subsection (d);
(C) by amending subsection (f) to read as
follows:
‘‘(f) LAUNCH NOT AN EXPORT; REENTRY NOT AN IM-
PORT.—A launch vehicle, reentry vehicle, or payload that
is launched or reentered is not, because of the launch or
reentry, an export or import, respectively, for purposes of
a law controlling exports or imports, except that payloads
launched pursuant to foreign trade zone procedures as pro-
vided for under the Foreign Trade Zones Act (19 U.S.C.
81a–81u) shall be considered exports with regard to customs
entry.’’; and
(D) in subsection (g)—
(i) by striking ‘‘operation of a launch
vehicle or launch site,’’ in paragraph (1)
and inserting in lieu thereof ‘‘reentry, oper-
ation of a launch vehicle or reentry vehicle,
operation of a launch site or reentry site,’’;
and
(ii) 
by 
inserting 
‘‘reentry,’’ 
after
‘‘launch,’’ in paragraph (2); and
(16) by adding at the end the following new sec-
tions:
‘‘§ 70120. Regulations
‘‘(a) IN GENERAL.—The Secretary of Transportation,
within 9 months after the date of the enactment of this sec-
tion, shall issue regulations to carry out this chapter that
include—
‘‘(1) guidelines for industry and State govern-
ments to obtain sufficient insurance coverage for po-
tential damages to third parties;
‘‘(2) procedures for requesting and obtaining li-
censes to launch a commercial launch vehicle;
‘‘(3) procedures for requesting and obtaining op-
erator licenses for launch;
‘‘(4) procedures for requesting and obtaining
launch site operator licenses; and
‘‘(5) procedures for the application of govern-
ment indemnification.
‘‘(b) REENTRY.—The Secretary of Transportation,
within 6 months after the date of the enactment of this sec-
tion, shall issue a notice of proposed rulemaking to carry
out this chapter that includes—
‘‘(1) procedures for requesting and obtaining li-
censes to reenter a reentry vehicle;
‘‘(2) procedures for requesting and obtaining op-
erator licenses for reentry; and
‘‘(3) procedures for requesting and obtaining re-
entry site operator licenses.
‘‘§ 70121. Report to Congress
‘‘The Secretary of Transportation shall submit to Con-
gress an annual report to accompany the President’s budget
request that—
‘‘(1) describes all activities undertaken under
this chapter, including a description of the process for
the application for and approval of licenses under
this chapter and recommendations for legislation that
may further commercial launches and reentries; and
‘‘(2) reviews the performance of the regulatory
activities and the effectiveness of the Office of Com-
mercial Space Transportation.’’.
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section
70119 of title 49, United States Code, is amended to read
as follows:
‘‘§ 70119. Authorization of appropriations
‘‘There are authorized to be appropriated to the Sec-
retary of Transportation for the activities of the Office of
the Associate Administrator for Commercial Space Trans-
portation—
‘‘(1) $6,275,000 for the fiscal year ending Sep-
tember 30, 1999; and
‘‘(2) $6,600,000 for the fiscal year ending Sep-
tember 30, 2000.’’.
(c) EFFECTIVE DATE.—The amendments made by sub-
section (a)(6)(B) shall take effect upon the effective date of
final regulations issued pursuant to section 70105(b)(2)(D)
of title 49, United States Code, as added by subsection
(a)(6)(H).
SEC. 103. LAUNCH VOUCHER DEMONSTRATION PROGRAM.
Section 504 of the National Aeronautics and Space
Administration Authorization Act, Fiscal Year 1993 (15
U.S.C. 5803) is amended—
(1) in subsection (a)—
(A) by striking ‘‘the Office of Commercial
Programs within’’; and
(B) by striking ‘‘Such program shall not be
effective after September 30, 1995.’’;
(2) by striking subsection (c); and
(3) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
SEC. 104. PROMOTION OF UNITED STATES GLOBAL POSI-
TIONING SYSTEM STANDARDS.
(a) FINDING.—The Congress finds that the Global Po-
sitioning System, including satellites, signal equipment,
ground stations, data links, and associated command and
control facilities, has become an essential element in civil,
scientific, and military space development because of the
emergence of a United States commercial industry which
provides Global Positioning System equipment and related
services.
(b) INTERNATIONAL COOPERATION.—In order to sup-
port and sustain the Global Positioning System in a man-
ner that will most effectively contribute to the national secu-
rity, public safety, scientific, and economic interests of the
United States, the Congress encourages the President to—
(1) ensure the operation of the Global Position-
ing System on a continuous worldwide basis free of
direct user fees;
(2) enter into international agreements that pro-
mote cooperation with foreign governments and inter-
national organizations to—
(A) establish the Global Positioning System
and its augmentations as an acceptable inter-
national standard; and
(B) eliminate any foreign barriers to appli-
cations of the Global Positioning System world-
wide; and
(3) provide clear direction and adequate re-
sources to the Assistant Secretary of Commerce for
Communications and Information so that on an
international basis the Assistant Secretary can—
(A) achieve and sustain efficient manage-
ment of the electromagnetic spectrum used by the
Global Positioning System; and
(B) protect that spectrum from disruption
and interference.
SEC. 105. ACQUISITION OF SPACE SCIENCE DATA.
(a) ACQUISITION FROM COMMERCIAL PROVIDERS.—
The Administrator shall, to the extent possible and while
satisfying the scientific or educational requirements of the
National Aeronautics and Space Administration, and
where appropriate, of other Federal agencies and scientific
researchers, acquire, where cost effective, space science data
from a commercial provider.
(b) TREATMENT OF SPACE SCIENCE DATA AS COM-
MERCIAL ITEM UNDER ACQUISITION LAWS.—Acquisitions
of space science data by the Administrator shall be carried
out in accordance with applicable acquisition laws and reg-
ulations (including chapters 137 and 140 of title 10, United
States Code). For purposes of such law and regulations,
space science data shall be considered to be a commercial
item. Nothing in this subsection shall be construed to pre-
clude the United States from acquiring, through contracts
with commercial providers, sufficient rights in data to meet
the needs of the scientific and educational community or
the needs of other government activities.
(c) DEFINITION.—For purposes of this section, the
term ‘‘space science data’’ includes scientific data concern-
ing—
(1) the elemental and mineralogical resources of
the moon, asteroids, planets and their moons, and
comets;
(2) microgravity acceleration; and
(3) solar storm monitoring.
(d) SAFETY STANDARDS.—Nothing in this section
shall be construed to prohibit the Federal Government from
requiring compliance with applicable safety standards.
(e) LIMITATION.—This section does not authorize the
National Aeronautics and Space Administration to provide
financial assistance for the development of commercial sys-
tems for the collection of space science data.
SEC. 106. ADMINISTRATION OF COMMERCIAL SPACE CEN-
TERS.
The Administrator shall administer the Commercial
Space Center program in a coordinated manner from Na-
tional Aeronautics and Space Administration headquarters
in Washington, D.C.
SEC. 107. SOURCES OF EARTH SCIENCE DATA.
(a) ACQUISITION.—The Administrator shall, to the ex-
tent possible and while satisfying the scientific or edu-
cational requirements of the National Aeronautics and
Space Administration, and where appropriate, of other
Federal agencies and scientific researchers, acquire, where
cost-effective, space-based and airborne Earth remote sens-
ing data, services, distribution, and applications from a
commercial provider.
(b) TREATMENT AS COMMERCIAL ITEM UNDER ACQUI-
SITION LAWS.—Acquisitions by the Administrator of the
data, services, distribution, and applications referred to in
subsection (a) shall be carried out in accordance with appli-
cable acquisition laws and regulations (including chapters
137 and 140 of title 10, United States Code). For purposes
of such law and regulations, such data, services, distribu-
tion, and applications shall be considered to be a commer-
cial item. Nothing in this subsection shall be construed to
preclude the United States from acquiring, through con-
tracts with commercial providers, sufficient rights in data
to meet the needs of the scientific and educational commu-
nity or the needs of other government activities.
(c) STUDY.—(1) The Administrator shall conduct a
study to determine the extent to which the baseline scientific
requirements of Earth Science can be met by commercial
providers, and how the National Aeronautics and Space
Administration will meet such requirements which cannot
be met by commercial providers.
(2) The study conducted under this subsection shall—
(A) make recommendations to promote the avail-
ability of information from the National Aeronautics
and Space Administration to commercial providers to
enable commercial providers to better meet the base-
line scientific requirements of Earth Science;
(B) make recommendations to promote the dis-
semination to commercial providers of information on
advanced technology research and development per-
formed by or for the National Aeronautics and Space
Administration; and
(C) identify policy, regulatory, and legislative
barriers to the implementation of the recommenda-
tions made under this subsection.
(3) The results of the study conducted under this sub-
section shall be transmitted to the Congress within 6 months
after the date of the enactment of this Act.
(d) SAFETY STANDARDS.—Nothing in this section
shall be construed to prohibit the Federal Government from
requiring compliance with applicable safety standards.
(e) ADMINISTRATION AND EXECUTION.—This section
shall be carried out as part of the Commercial Remote Sens-
ing Program at the Stennis Space Center.
(f) REMOTE SENSING.—
(1) APPLICATION CONTENTS.—Section 201(b) of
the Land Remote Sensing Policy Act of 1992 (15
U.S.C. 5621(b)) is amended—
(A) by inserting ‘‘(1)’’ after ‘‘NATIONAL SE-
CURITY.—’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2) The Secretary, within 6 months after the date of
the enactment of the Commercial Space Act of 1998, shall
publish in the Federal Register a complete and specific list
of all information required to comprise a complete applica-
tion for a license under this title. An application shall be
considered complete when the applicant has provided all in-
formation required by the list most recently published in
the Federal Register before the date the application was first
submitted. Unless the Secretary has, within 30 days after
receipt of an application, notified the applicant of informa-
tion necessary to complete an application, the Secretary
may not deny the application on the basis of the absence
of any such information.’’.
(2) NOTIFICATION
OF
AGREEMENTS.—Section
202(b)(6) of the Land Remote Sensing Policy Act of
1992 (15 U.S.C. 5622(b)(6)) is amended by inserting
‘‘significant or substantial’’ after ‘‘Secretary of any’’.
TITLE 
II—FEDERAL 
ACQUISI-
TION OF SPACE TRANSPOR-
TATION SERVICES
SEC. 201. REQUIREMENT TO PROCURE COMMERCIAL SPACE
TRANSPORTATION SERVICES.
(a) IN GENERAL.—Except as otherwise provided in
this section, the Federal Government shall acquire space
transportation services from United States commercial pro-
viders whenever such services are required in the course of
its activities. To the maximum extent practicable, the Fed-
eral Government shall plan missions to accommodate the
space transportation services capabilities of United States
commercial providers.
(b) EXCEPTIONS.—The Federal Government shall not
be required to acquire space transportation services under
subsection (a) if, on a case-by-case basis, the Administrator
or, in the case of a national security issue, the Secretary
of the Air Force, determines that—
(1) a payload requires the unique capabilities of
the Space Shuttle;
(2) cost effective space transportation services
that meet specific mission requirements would not be
reasonably available from United States commercial
providers when required;
(3) the use of space transportation services from
United States commercial providers poses an unac-
ceptable risk of loss of a unique scientific opportunity;
(4) the use of space transportation services from
United States commercial providers is inconsistent
with national security objectives;
(5) the use of space transportation services from
United States commercial providers is inconsistent
with international agreements for international col-
laborative efforts relating to science and technology;
(6) it is more cost effective to transport a pay-
load in conjunction with a test or demonstration of
a space transportation vehicle owned by the Federal
Government; or
(7) a payload can make use of the available
cargo space on a Space Shuttle mission as a second-
ary payload, and such payload is consistent with the
requirements of research, development, demonstration,
scientific, commercial, and educational programs au-
thorized by the Administrator.
Nothing in this section shall prevent the Administrator
from planning or negotiating agreements with foreign enti-
ties for the launch of Federal Government payloads for
international collaborative efforts relating to science and
technology.
(c) DELAYED EFFECT.—Subsection (a) shall not apply
to space transportation services and space transportation
vehicles acquired or owned by the Federal Government be-
fore the date of the enactment of this Act, or with respect
to which a contract for such acquisition or ownership has
been entered into before such date.
(d) HISTORICAL PURPOSES.—This section shall not be
construed to prohibit the Federal Government from acquir-
ing, owning, or maintaining space transportation vehicles
solely for historical display purposes.
SEC. 202. ACQUISITION OF COMMERCIAL SPACE TRANSPOR-
TATION SERVICES.
(a) TREATMENT OF COMMERCIAL SPACE TRANSPOR-
TATION SERVICES AS COMMERCIAL ITEM UNDER ACQUISI-
TION LAWS.—Acquisitions of space transportation services
by the Federal Government shall be carried out in accord-
ance with applicable acquisition laws and regulations (in-
cluding chapters 137 and 140 of title 10, United States
Code). For purposes of such law and regulations, space
transportation services shall be considered to be a commer-
cial item.
(b) SAFETY STANDARDS.—Nothing in this section shall
be construed to prohibit the Federal Government from re-
quiring compliance with applicable safety standards.
SEC. 203. LAUNCH SERVICES PURCHASE ACT OF 1990
AMENDMENTS.
The Launch Services Purchase Act of 1990 (42 U.S.C.
2465b et seq.) is amended—
(1) by striking section 202;
(2) in section 203—
(A) by striking paragraphs (1) and (2); and
(B) by redesignating paragraphs (3) and
(4) as paragraphs (1) and (2), respectively;
(3) by striking sections 204 and 205; and
(4) in section 206—
(A) by striking ‘‘(a) COMMERCIAL PAY-
LOADS ON THE SPACE SHUTTLE.—’’; and
(B) by striking subsection (b).
SEC. 204. SHUTTLE PRIVATIZATION.
(a) POLICY AND PREPARATION.—The Administrator
shall prepare for an orderly transition from the Federal op-
eration, or Federal management of contracted operation, of
space transportation systems to the Federal purchase of
commercial space transportation services for all non-
emergency space transportation requirements for transpor-
tation to and from Earth orbit, including human, cargo,
and mixed payloads. In those preparations, the Adminis-
trator shall take into account the need for short-term econo-
mies, as well as the goal of restoring the National Aero-
nautics and Space Administration’s research focus and its
mandate to promote the fullest possible commercial use of
space. As part of those preparations, the Administrator
shall plan for the potential privatization of the Space Shut-
tle program. Such plan shall keep safety and cost effective-
ness as high priorities. Nothing in this section shall prohibit
the National Aeronautics and Space Administration from
studying, designing, developing, or funding upgrades or
modifications essential to the safe and economical operation
of the Space Shuttle fleet.
(b) FEASIBILITY STUDY.—The Administrator shall
conduct a study of the feasibility of implementing the rec-
ommendation of the Independent Shuttle Management Re-
view Team that the National Aeronautics and Space Ad-
ministration transition toward the privatization of the
Space Shuttle. The study shall identify, discuss, and, where
possible, present options for resolving, the major policy and
legal issues that must be addressed before the Space Shuttle
is privatized, including—
(1) whether the Federal Government or the Space
Shuttle contractor should own the Space Shuttle or-
biters and ground facilities;
(2) whether the Federal Government should in-
demnify the contractor for any third party liability
arising from Space Shuttle operations, and, if so,
under what terms and conditions;
(3) whether payloads other than National Aero-
nautics and Space Administration payloads should be
allowed to be launched on the Space Shuttle, how mis-
sions will be prioritized, and who will decide which
mission flies and when;
(4) whether commercial payloads should be al-
lowed to be launched on the Space Shuttle and wheth-
er any classes of payloads should be made ineligible
for launch consideration;
(5) whether National Aeronautics and Space Ad-
ministration and other Federal Government payloads
should have priority over non-Federal payloads in the
Space Shuttle launch assignments, and what policies
should be developed to prioritize among payloads gen-
erally;
(6) whether the public interest requires that cer-
tain Space Shuttle functions continue to be performed
by the Federal Government; and
(7) how much cost savings, if any, will be gen-
erated by privatization of the Space Shuttle.
(c) REPORT TO CONGRESS.—Within 60 days after the
date of the enactment of this Act, the National Aeronautics
and Space Administration shall complete the study re-
quired under subsection (b) and shall submit a report on
the study to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Science
of the House of Representatives.
SEC. 205. USE OF EXCESS INTERCONTINENTAL BALLISTIC
MISSILES.
(a) IN
GENERAL.—The Federal Government shall
not—
(1) convert any missile described in subsection
(c) to a space transportation vehicle configuration; or
(2) transfer ownership of any such missile to an-
other person, except as provided in subsection (b).
(b) AUTHORIZED FEDERAL USES.—(1) A missile de-
scribed in subsection (c) may be converted for use as a space
transportation vehicle by the Federal Government if, except
as provided in paragraph (2) and at least 30 days before
such conversion, the agency seeking to use the missile as
a space transportation vehicle transmits to the Committee
on National Security and the Committee on Science of the
House of Representatives, and to the Committee on Armed
Services and the Committee on Commerce, Science, and
Transportation of the Senate, a certification that the use
of such missile—
(A) would result in cost savings to the Federal
Government when compared to the cost of acquiring
space transportation services from United States com-
mercial providers;
(B) meets all mission requirements of the agency,
including performance, schedule, and risk require-
ments;
(C) is consistent with international obligations
of the United States; and
(D) is approved by the Secretary of Defense or
his designee.
(2) The requirement under paragraph (1) that the cer-
tification described in that paragraph must be transmitted
at least 30 days before conversion of the missile shall not
apply if the Secretary of Defense determines that compli-
ance with that requirement would be inconsistent with
meeting immediate national security requirements.
(c) MISSILES REFERRED TO.— The missiles referred
to in this section are missiles owned by the United States
that—
(1) were formerly used by the Department of De-
fense for national defense purposes as intercontinental
ballistic missiles; and
(2) have been declared excess to United States
national defense needs and are in compliance with
international obligations of the United States.
SEC. 206. NATIONAL LAUNCH CAPABILITY STUDY.
(a) FINDINGS.—Congress finds that a robust satellite
and launch industry in the United States serves the interest
of the United States by—
(1) contributing to the economy of the United
States;
(2) strengthening employment, technological, and
scientific interests of the United States; and
(3) serving the foreign policy and national secu-
rity interests of the United States.
(b) DEFINITIONS.—In this section:
(1) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Defense.
(2) 
TOTAL
POTENTIAL
NATIONAL
MISSION
MODEL.—The term ‘‘total potential national mission
model’’ means a model that—
(A) is determined by the Secretary, in con-
sultation with the Administrator, to assess the
total potential space missions to be conducted in
the United States during a specified period of
time; and
(B) includes all launches in the United
States (including launches conducted on or off a
Federal range).
(c) REPORT.—
(1) IN GENERAL.—Not later than 180 days after
the date of enactment of this Act, the Secretary shall,
in consultation with the Administrator and appro-
priate representatives of the satellite and launch in-
dustry and the governments of States and political
subdivisions thereof—
(A) prepare a report that meets the require-
ments of this subsection; and
(B) submit that report to the Committee on
Commerce, Science, and Transportation of the
Senate and the Committee on Science of the
House of Representatives.
(2) REQUIREMENTS
FOR
REPORT.—The report
prepared under this subsection shall—
(A) identify the total potential national
mission model for the period beginning on the
date of the report and ending on December 31,
2007;
(B) identify the resources that are necessary
or available to carry out the total potential na-
tional mission model described in subparagraph
(A), including—
(i) launch property and services of the
Department of Defense, the National Aero-
nautics and Space Administration, and
non-Federal facilities; and
(ii) the ability to support commercial
launch-on-demand on short notification,
taking into account Federal requirements,
at launch sites or test ranges in the United
States;
(C) identify each deficiency in the resources
referred to in subparagraph (B); and
(D) with respect to the deficiencies identi-
fied under subparagraph (C), include estimates
of the level of funding necessary to address those
deficiencies for the period described in subpara-
graph (A).
(d) RECOMMENDATIONS.—Based on the reports under
subsection (c), the Secretary, after consultation with the
Secretary of Transportation, the Secretary of Commerce,
and representatives from interested private sector entities,
States, and local governments, shall—
(1) identify opportunities for investment by non-
Federal entities (including States and political sub-
divisions thereof and private sector entities) to assist
the Federal Government in providing launch capa-
bilities for the commercial space industry in the
United States;
(2) identify one or more methods by which, if
sufficient resources referred to in subsection (c)(2)(D)
are not available to the Department of Defense and
the National Aeronautics and Space Administration,
the control of the launch property and launch services
of the Department of Defense and the National Aero-
nautics and Space Administration may be trans-
ferred from the Department of Defense and the Na-
tional Aeronautics and Space Administration to—
(A) one or more other Federal agencies;
(B) one or more States (or subdivisions
thereof);
(C) one or more private sector entities; or
(D) any combination of the entities de-
scribed in subparagraphs (A) through (C); and
(3) identify the technical, structural, and legal
impediments associated with making launch sites or
test ranges in the United States viable and competi-
tive.
Attest:
Clerk.