IB 
Union Calendar No. 85 
114TH CONGRESS 
1ST SESSION H. R. 2262 
[Report No. 114–119] 
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. ROHR-
ABACHER, 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 
MAY 18, 2015 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 12, 2015] 
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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 reg-
ulatory conditions, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Spurring Private Aero-
space Competitiveness and Entrepreneurship Act of 2015’’ 
or the ‘‘SPACE Act of 2015’’. 
SEC. 2. CONSENSUS STANDARDS. 
Section 50905(c) of title 51, United States Code, is 
amended— 
(1) by striking paragraph (3); 
(2) by redesignating paragraph (4) as para-
graph (8); and 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) INTERIM INDUSTRY VOLUNTARY CONSENSUS 
STANDARDS REPORT.—The Secretary, in consultation 
with the Commercial Space Transportation Advisory 
Committee, or its successor organization, shall pro-
vide a report to the Committee on Science, Space, and 
Technology of the House of Representatives and the 
Committee on Commerce, Science, and Transpor-
tation of the Senate on the progress of the commercial 
space transportation industry in developing vol-
untary consensus standards or any other construction 
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that promotes best practices to improve the industry. 
Such report shall include, at a minimum— 
‘‘(A) any voluntary industry consensus 
standards or any other construction that have 
been accepted by the industry at large; 
‘‘(B) the identification of areas that have 
the potential to become voluntary industry con-
sensus standards or another potential construc-
tion that are currently under consideration by 
the industry at large; 
‘‘(C) an assessment from the Secretary on 
the general progress of the industry in adopting 
voluntary consensus standards or any other con-
struction; 
‘‘(D) lessons learned about voluntary indus-
try consensus standards or any other construc-
tion, best practices, and commercial space launch 
operations; 
‘‘(E) any lessons learned associated with the 
development, potential application, and accept-
ance of voluntary industry consensus standards 
or any other construction, best practices, and 
commercial space launch operations; and 
‘‘(F) recommendations, findings, or observa-
tions from the Commercial Space Transportation 
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Advisory Committee, or its successor organiza-
tion, on the progress of the industry in devel-
oping industry consensus standards or any other 
construction. 
This report, with the appropriate updates in the in-
tervening periods, shall be transmitted to such com-
mittees no later than December 31, 2016, December 
31, 2018, December 31, 2020, and December 31, 2022. 
Each report shall describe and assess the progress 
achieved as of 6 months prior to the specified trans-
mittal date. 
‘‘(4) INTERIM
REPORT
ON
KNOWLEDGE
AND 
OPERATIONAL EXPERIENCE.—The Secretary shall pro-
vide a report to the Committee on Science, Space, and 
Technology of the House of Representatives and the 
Committee on Commerce, Science, and Transpor-
tation of the of the Senate on the status of the knowl-
edge and operational experience acquired by the in-
dustry while providing flight services for compensa-
tion or hire to support the development of a safety 
framework. Interim reports shall by transmitted to 
such committees no later than December 31, 2018, De-
cember 31, 2020, and December 31, 2022. Each report 
shall describe and assess the progress achieved as of 
6 months prior to the specified transmittal date. 
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under this subsection without regard to paragraph 
(2)(C) and (D). The development of any such regula-
tions shall take into consideration the evolving stand-
ards of the commercial space flight industry as iden-
tified through the reports published under paragraphs 
(3) and (4). 
‘‘(7) COMMUNICATION
AND
TRANSPARENCY.— 
Nothing in this subsection shall be construed to limit 
the authority of the Secretary of Transportation to 
discuss potential approaches, potential performance 
standards, or any other topic related to this sub-
section with the commercial space industry including 
observations, findings, and recommendations from the 
Commercial Space Transportation Advisory Com-
mittee, or its successor organization, prior to the 
issuance of a notice of proposed rulemaking. Such dis-
cussions shall not be construed to permit the Sec-
retary to promulgate industry regulations except as 
otherwise provided in this section.’’. 
SEC. 3. INTERNATIONAL LAUNCH COMPETITIVENESS. 
(a) PURPOSE.—The purpose of this section is to pro-
vide for updating the methodology used to calculate the 
maximum probable loss from claims under section 50914 
of title 51, United States Code, with a validated risk profile 
approach to provide reasonable maximum probable loss val-
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ues associated with potential third party losses from com-
mercially licensed launches. An appropriately updated 
methodology will help ensure that the Federal Government 
is not exposed to greater financial risks than intended and 
that launch companies are not required to purchase more 
insurance coverage than necessary. 
(b) MAXIMUM PROBABLE LOSS PLAN.—Not later than 
180 days after the date of enactment of this Act, the Sec-
retary of Transportation shall provide to the Committee on 
Science, Space, and Technology of the House of Representa-
tives and the Committee on Commerce, Science, and Trans-
portation of the Senate a plan to update the methodology 
used to calculate maximum probable loss from claims under 
section 50914 of title 51, United States Code, through the 
use of a validated risk profile approach. Such plan shall 
include, at a minimum— 
(1) an evaluation of the reasonableness of the 
current single casualty estimate and, if needed, the 
steps the Secretary will take to update such estimate; 
(2) an evaluation, in consultation with the Ad-
ministrator of the National Aeronautics and Space 
Administration and the heads of other relevant execu-
tive agencies, of the reasonableness of the dollar value 
of the insurance requirement required by the Sec-
retary for launch providers to cover damage to Gov-
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ernment property resulting from a commercially li-
censed space launch activity, and recommendations as 
to a reasonable calculation if, as determined by the 
Secretary, the current statutory threshold is insuffi-
cient; 
(3) a schedule of when updates to the method-
ology and calculations for the totality of the Max-
imum Probable Loss will be implemented, and a de-
tailed explanation of any changes to the current cal-
culation; and 
(4) consideration of the impact of the cost of its 
implementation on the licensing process, both in 
terms of the cost to industry of collecting and pro-
viding the requisite data and cost to the Government 
of analyzing the data. 
(c) INDEPENDENT ASSESSMENT.—Not later than 270 
days after transmittal of the plan under subsection (b), the 
Comptroller General shall provide to the Committee on 
Science, Space, and Technology of the House of Representa-
tives and the Committee on Commerce, Science, and Trans-
portation of the Senate an assessment of— 
(1) the conclusions and analysis provided by the 
Secretary of Transportation in the plan required 
under subsection (b); 
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(2) the implementation schedule proposed by the 
Secretary in such plan; 
(3) the suitability of the plan for implementa-
tion; and 
(4) any further actions needed to implement the 
plan or otherwise accomplish the purpose of this sec-
tion. 
(d) LAUNCH LIABILITY EXTENSION.—Section 50915(f) 
of title 51, United States Code, is amended by striking ‘‘De-
cember 31, 2016’’ and inserting ‘‘December 31, 2025’’. 
SEC. 4. LAUNCH LICENSE FLEXIBILITY. 
Section 50906 of title 51, United States Code, is 
amended— 
(1) in subsection (d), by striking ‘‘launched or 
reentered’’ and inserting ‘‘launched or reentered under 
that permit’’; 
(2) by amending subsection (d)(1) to read as fol-
lows: 
‘‘(1) research and development to test design con-
cepts, equipment, or operating techniques;’’; 
(3) in subsection (d)(3), by striking ‘‘prior to ob-
taining a license’’; 
(4) in subsection (e)(1), by striking ‘‘suborbital 
rocket design’’ and inserting ‘‘suborbital rocket or 
rocket design’’; and 
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(5) by amending subsection (g) to read as fol-
lows: 
‘‘(g) The Secretary may issue a permit under this sec-
tion notwithstanding any license issued under this chapter. 
The issuance of a license under this chapter shall not invali-
date a permit under this section.’’. 
SEC. 5. GOVERNMENT ASTRONAUTS. 
(a) DEFINITIONS.—Section 50902 of title 51, United 
States Code, is amended— 
(1) by redesignating paragraphs (4) through (22) 
as paragraphs (5) through (23), respectively; 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) ‘government astronaut’ means an indi-
vidual designated as such by the Administrator of the 
National Aeronautics and Space Administration, 
pursuant requirements established by the Adminis-
trator, who— 
‘‘(A) is an employee of— 
‘‘(i) the United States Government, in-
cluding the United States Armed Forces; or 
‘‘(ii) a foreign government that is a 
party to the Intergovernmental Agreement 
Among the Government of Canada, Govern-
ments of Member States of the European 
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Space Agency, the Government of Japan, 
the Government of the Russian Federation, 
and the Government of the United States of 
America Concerning Cooperation on the 
Civil International Space Station, signed 
on January 29, 1998; and 
‘‘(B) is carried within a launch vehicle or 
reentry vehicle in the course of his or her em-
ployment, which may include performance of ac-
tivities directly relating to the launch, reentry, 
or other operation of the launch vehicle or re-
entry vehicle.’’; 
(3) in paragraph (5), as so redesignated by 
paragraph (1) of this subsection, by inserting ‘‘gov-
ernment astronaut,’’ after ‘‘crew,’’; 
(4) in paragraph (7)(A), as so redesignated by 
paragraph (1) of this subsection, by inserting ‘‘gov-
ernment astronaut,’’ after ‘‘(including crew train-
ing),’’; 
(5) in paragraph (14), as so redesignated by 
paragraph (1) of this subsection, by inserting ‘‘gov-
ernment astronauts,’’ after ‘‘crew,’’; 
(6) in paragraph (15)(A), as so redesignated by 
paragraph (1) of this subsection, by inserting ‘‘gov-
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ernment astronaut,’’ after ‘‘(including crew train-
ing),’’; 
(7) by amending paragraph (18), as so redesig-
nated by paragraph (1) of this subsection, to read as 
follows: 
‘‘(18) ‘space flight participant’ means an indi-
vidual, who is not crew or a government astronaut, 
carried within a launch vehicle or reentry vehicle.’’; 
and 
(8) in paragraph (22)(E), as so redesignated by 
paragraph (1) of this subsection, by inserting ‘‘, gov-
ernment astronauts,’’ after ‘‘crew’’. 
(b) RESTRICTIONS ON LAUNCHES, OPERATIONS, AND 
REENTRIES; SINGLE
LICENSE
OR
PERMIT.—Section 
50904(d) of title 51, United States Code, is amended by 
inserting ‘‘, government astronauts,’’ after ‘‘crew’’. 
(c) LICENSE APPLICATIONS AND REQUIREMENTS; AP-
PLICATIONS.—Section 50905 of title 51, United States 
Code, is amended— 
(1) in subsection (a)(2), by striking ‘‘crews and 
space flight participants’’ and inserting ‘‘crew, gov-
ernment astronauts, and space flight participants’’; 
(2) in subsection (b)(2)(D), by inserting ‘‘, gov-
ernment astronauts,’’ after ‘‘crew’’; and 
(3) in subsection (c)— 
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(A) in paragraph (1), by inserting ‘‘, gov-
ernment astronauts,’’ after ‘‘crew’’; and 
(B) in paragraph (2), by striking ‘‘to crew 
or space flight participants’’ each place it ap-
pears and inserting ‘‘to crew, government astro-
nauts, or space flight participants’’. 
(d) MONITORING ACTIVITIES.—Section 50907(a) of 
title 51, United States Code, is amended by striking ‘‘crew 
or space flight participant training’’ and inserting ‘‘crew, 
government astronaut, or space flight participant train-
ing’’. 
(e) ADDITIONAL SUSPENSIONS.—Section 50908(d)(1) 
of title 51, United States Code, is amended by striking ‘‘to 
crew or space flight participants’’ each place it appears and 
inserting ‘‘to crew, government astronauts, or space flight 
participants’’. 
SEC. 6. INDEMNIFICATION FOR SPACE FLIGHT PARTICI-
PANTS. 
Chapter 509 of title 51, United States Code, is amend-
ed— 
(1) in section 50914(a)(4), by adding at the end 
the following: 
‘‘(E) space flight participants.’’; and 
(2) in section 50915(a)(1)— 
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(A) by striking ‘‘or a contractor’’ and in-
serting ‘‘a contractor’’; and 
(B) by striking ‘‘but not against’’ and in-
serting ‘‘or’’. 
SEC. 7. FEDERAL JURISDICTION. 
Section 50914 of title 51, United States Code, is 
amended by adding at the end the following: 
‘‘(g) FEDERAL JURISDICTION.—Any action or tort 
arising from a licensed launch or reentry shall be the sole 
jurisdiction of the Federal courts and shall be decided under 
Federal law.’’. 
SEC. 8. CROSS-WAIVERS. 
Section 50914(b)(1) of title 51, United States Code, is 
amended to read as follows: ‘‘(1) A launch or reentry license 
issued or transferred under this chapter shall contain a pro-
vision requiring the licensee or transferee to make a recip-
rocal waiver of claims with its contractors, subcontractors, 
and customers, the contractors and subcontractors of the 
customers, and any space flight participants, involved in 
launch services or reentry services or participating in a 
flight under which each party to the waiver agrees to be 
responsible for property damage or loss it or they sustain, 
or for personal injury to, death of, or property damage or 
loss sustained by its own employees resulting from an activ-
ity carried out under the applicable license.’’. 
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SEC. 9. ORBITAL TRAFFIC MANAGEMENT. 
(a) SENSE OF CONGRESS.—It is the sense of the Con-
gress that, as none currently exists, there may be a need 
for a framework that addresses space traffic management 
of United States Government assets and United States pri-
vate sector assets to minimize the proliferation of debris and 
decrease the congestion of the orbital environment. 
(b) STUDY REQUIRED.—Not later than 90 days after 
the date of enactment of this Act, the Administrator of the 
National Aeronautics and Space Administration shall enter 
into an arrangement with an independent, private systems 
engineering and technical assistance organization to study 
frameworks for the management of space traffic and orbital 
activities. The study shall include the following: 
(1) An assessment of current regulations, Gov-
ernment best practices, and industry standards that 
apply to space traffic management and orbital debris 
mitigation. 
(2) An assessment of current statutory authority 
granted to the Federal Communications Commission, 
the Federal Aviation Administration, and the Na-
tional Oceanic and Atmospheric Administration and 
how those agencies utilize and coordinate those au-
thorities. 
(3) A review of all space traffic management and 
orbital debris requirements under treaties and other 
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international agreements to which the United States 
is a signatory, and other nonbinding international 
arrangements in which the United States partici-
pates, and the manner in which the Federal Govern-
ment complies with those requirements. 
(4) An assessment of existing Federal Govern-
ment assets used to conduct space traffic management 
and space situational awareness. 
(5) An assessment of the risk associated with 
smallsats as well as any necessary Government co-
ordination for their launch and utilization. 
(6) An assessment of existing private sector in-
formation sharing activities associated with space sit-
uational awareness and space traffic management. 
(7) Recommendations related to the framework 
for the protection of the health, safety, and welfare of 
the public and economic vitality of the space indus-
try. 
(c) REPORT TO CONGRESS.—Not later than 1 year 
after the date of enactment of this Act, the Administrator 
shall provide to the Committee on Science, Space, and Tech-
nology of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate 
the report required in subsection (b). 
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(d) DEPARTMENT OF DEFENSE AUTHORITIES.—Con-
gress recognizes the vital and unique role played by the De-
partment of Defense in protecting national security assets 
in space. Nothing in this section shall be construed to 
amend authorities granted to the Department of Defense to 
safeguard the national security. 
SEC. 10. STATE COMMERCIAL LAUNCH FACILITIES. 
It is the Sense of Congress that State involvement, de-
velopment, ownership, and operation of launch facilities 
can help enable growth of the Nation’s commercial sub-
orbital and orbital space endeavors and support both com-
mercial and Government space programs. It is further the 
sense of Congress that State launch facilities and the people 
and property within the affected launch areas of those State 
facilities are subject to risks if the commercial launch vehi-
cle fails or experiences an anomaly. To ensure the success 
of the commercial launch industry and the safety of the peo-
ple and property in the affected launch areas, it is the fur-
ther sense of Congress that States and State launch facilities 
should seek to take proper measures to secure their invest-
ments and the safety of third parties from potential dam-
ages that could be suffered from commercial launch activi-
ties. 
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SEC. 11. SPACE SUPPORT VEHICLES STUDY. 
Not less than 1 year after the date of enactment of this 
Act, the Comptroller General shall submit to the Committee 
on Science, Space, and Technology of the House of Rep-
resentatives and the Committee on Commerce, Science, and 
Transportation of the Senate, a report on the use of space 
support vehicle services in the commercial space industry. 
This report shall include— 
(1) the extent to which launch providers rely on 
such services as part of their business models; 
(2) the statutory, regulatory, and market bar-
riers to the use of such services; and 
(3) recommendations for legislative or regulatory 
action that may be needed to ensure reduced barriers 
to the use of such services if such use is a requirement 
of the industry. 
SEC. 12. STREAMLINE COMMERCIAL SPACE LAUNCH ACTIVI-
TIES. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that eliminating duplicative requirements and approvals 
for commercial launch and reentry operations will promote 
and encourage the development of the commercial space sec-
tor. 
(b) REAFFIRMATION OF POLICY.—Congress reaffirms 
that the Secretary of Transportation, in overseeing and co-
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ordinating commercial launch and reentry operations, 
should— 
(1) promote commercial space launches and reen-
tries by the private sector; 
(2) facilitate Government, State, and private sec-
tor involvement in enhancing U.S. launch sites and 
facilities; 
(3) protect public health and safety, safety of 
property, national security interests, and foreign pol-
icy interests of the United States; and 
(4) consult with the head of another executive 
agency, including the Secretary of Defense or the Ad-
ministrator of the National Aeronautics and Space 
Administration, as necessary to provide consistent 
application of licensing requirements under chapter 
509 of title 51, United States Code. 
(c) REQUIREMENTS.— 
(1) IN GENERAL.—The Secretary of Transpor-
tation under section 50918 of title 51, United States 
Code, and subject to section 50905(b)(2)(C) of that 
title, shall consult with the Secretary of Defense, the 
Administrator of the National Aeronautics and Space 
Administration, and the heads of other executive 
agencies, as appropriate— 
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(A) to identify all requirements that are im-
posed to protect the public health and safety, 
safety of property, national security interests, 
and foreign policy interests of the United States 
relevant to any commercial launch of a launch 
vehicle or commercial reentry of a reentry vehi-
cle; and 
(B) to evaluate the requirements identified 
in subparagraph (A) and, in coordination with 
the licensee or transferee and the heads of the rel-
evant executive agencies— 
(i) determine whether the satisfaction 
of a requirement of one agency could result 
in the satisfaction of a requirement of an-
other agency; and 
(ii) resolve any inconsistencies and re-
move any outmoded or duplicative require-
ments or approvals of the Federal Govern-
ment relevant to any commercial launch of 
a launch vehicle or commercial reentry of a 
reentry vehicle. 
(2) REPORTS.—Not later than 180 days after the 
date of enactment of this Act, and annually thereafter 
until the Secretary of Transportation determines no 
outmoded or duplicative requirements or approvals of 
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the Federal Government exist, the Secretary of Trans-
portation, in consultation with the Secretary of De-
fense, the Administrator of the National Aeronautics 
and Space Administration, the commercial space sec-
tor, and the heads of other executive agencies, as ap-
propriate, shall submit to the Committee on Com-
merce, Science, and Transportation of the Senate, the 
Committee on Science, Space, and Technology of the 
House of Representatives, and the congressional de-
fense committees a report that includes the following: 
(A) A description of the process for the ap-
plication for and approval of a permit or license 
under chapter 509 of title 51, United States 
Code, for the commercial launch of a launch ve-
hicle or commercial reentry of a reentry vehicle, 
including the identification of— 
(i) any unique requirements for oper-
ating on a United States Government 
launch site, reentry site, or launch property; 
and 
(ii) any inconsistent, outmoded, or du-
plicative requirements or approvals. 
(B) A description of current efforts, if any, 
to coordinate and work across executive agencies 
to define interagency processes and procedures 
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for sharing information, avoiding duplication of 
effort, and resolving common agency require-
ments. 
(C) Recommendations for legislation that 
may further— 
(i) streamline requirements in order to 
improve efficiency, reduce unnecessary costs, 
resolve inconsistencies, remove duplication, 
and minimize unwarranted constraints; 
and 
(ii) consolidate or modify requirements 
across affected agencies into a single appli-
cation set that satisfies the requirements 
identified in paragraph (1)(A). 
(3) DEFINITIONS.—For purposes of this sub-
section— 
(A) any applicable definitions set forth in 
section 50902 of title 51, United States Code, 
shall apply; 
(B) the terms ‘‘launch’’, ‘‘reenter’’, and ‘‘re-
entry’’ include landing of a launch vehicle or re-
entry vehicle; and 
(C) the terms ‘‘United States Government 
launch site’’ and ‘‘United States Government re-
entry site’’ include any necessary facility, at 
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01:44 May 19, 2015
Jkt 049200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6203
E:\BILLS\H2262.RH
H2262
rfrederick on DSK6VPTVN1PROD with BILLS