Commercial Space Launch Act Amendments of 1988
PL 100-657 (H.R.4399), enacted 11/15/1988

102 STAT. 3900 
PUBLIC LAW 100-657—NOV. 15, 1988 
Public Law 100-657 
100th Congress 
An Act 
Nov. 15, 1988 
[H.R. 4399] 
To facilitate commercial access to space, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
Commercial 
United States of America in Congress assembled, 
Space Launch 
Act 
SECTION 1. SHORT TITLE. 
1988. 
This Act may be cited as the "Commercial Space Launch Act 
49 use app. 2601 Amendments of 1988". 
note. 
49 use app. 2601 
SEC. 2. FINDINGS. 
''°*^ 
The Congress finds that— 
(1) a United States commercial space launch industry is an 
essenticd component of national efforts to assure access to space 
for Government and commercial users; 
(2) the Federal Government should encourage, facilitate, 
and promote the use of the United States commercial space 
launch industry in order to continue United States aerospace 
preeminence; 
(3) the United States commercial space launch industry must 
be competitive in the international marketplace; 
(4) Federal Government policies should recognize the respon-
sibility of the United States under international treaty for 
activities conducted by United States citizens in space; and 
(5) the United States must maintain a competitive edge in 
international commercial space transportation by ensuring 
continued research in launch vehicle component technology and 
development. 
SEC. 3. DEFINITIONS. 
Section 4 of the Commercial Space Launch Act (49 U.S.C. App. 
2603) is amended— 
(1) in paragraph (10) by striking "and" at the end; 
(2) by redesignating paragraph (11) as paragraph (12); and 
(3) by inserting immediately after paragraph (10) the follow-
ing new paragraph: 
"(11) 'third party' means any person or entity other than— 
"(A) the United States, its agencies, or its contractors or 
subcontractors involved in launch services; 
"(B) the licensee or transferee; 
"(C) the licensee's or transferee's contractors, subcontrac-
tors, or customers involved in launch services; or 
"(D) any such customer's contractors or subcontractors 
involved in launch services; and". 
SEC. 4. PRIVATE ACQUISITION OF GOVERNMENT PROPERTY AND 
SERVICES. 
(a) Section 15(a) of the Commercial Space Launch Act (49 U.S.C. 
App. 2614(a)) is amended by adding at the end the following: "In 
taking such actions, the Secretary shall consider the commercial 
JH^^^-"^.^ tri--.-. 
PUBLIC LAW 100-657—NOV. 15, 1988 
102 STAT. 3901 
availability, on reasonable terms and conditions, of substantially 
equivalent launch property or launch services from a domestic 
source.". 
(b) Section 15(bXl) of the (Commercial Space Launch Act (49 U.S.C. 
App. 2614(bXl) is amended by adding at the end the following: "For 
purposes of this paragraph, the term 'direct costs' means the actual 
costs that can be unambiguously associated with a commercial 
launch effort, and would not be borne by the United States Govern-
ment in the absence of a commercial launch effort.". 
(c) Section 15 of the Commercial Space Launch Act (49 U.S.C. App. 
2614) is amended by adding at the end the following new subsection: 
"(d) The head of any Federal agency or department may collect 
pa5mtient for activities involved in the production of a launch vehicle 
or its payload for launch if such activities were Eigreed to by the 
owners or manufacturers of such launch vehicle or payload.". 
SEC. 5. INSURANCE REQUIREMENTS OF LICENSEE. 
(a) Section 16 of the Commercial Space Launch Act (49 U.S.C. App. 
2615) is amended to read as follows: 
"LIABILITY INSURANCE 
"SEC. 16. (aXlXA) Each license issued or transferred under this Claims. 
Act shall require the licensee or transferee— 
"(i) to obtain liability insurance; or 
"(ii) to demonstrate financial responsibility, 
in an amount suf^cient to compensate the maximum probable loss 
(as determined by the Secretary, after consultation with the 
Administrator of the National Aeronautics and Space Administra-
tion, the Secretary of the Air Force, and the heads of other appro-
priate agencies) from claims by a third party for death, bodily 
injury, or loss of or damage to property resulting from activities 
carried out under the license in connection with any particular 
launch. In no event shall a licensee or transferee be required to 
obtain insurance or demonstrate financial responsibility under this 
subparagraph, with respect to the aggregate of such claims arising 
out of any particular launch, in an amount which exceeds 
(I) $500,000,000 or (II) the maximum liability insurance available on 
the world market at a reasonable cost, if such insurance is less than 
the amount in subclause (I). 
"(B) Each license issued or transferred under this Act shall 
require the licensee or transferee— 
"(i) to obtain liability insurance; or 
"(ii) to demonstrate financial responsibility, 
in an amount sufficient to compensate the maximum probable loss 
(as determined by the Secretary, after consultation with the 
Administrator of the National Aeronautics and Space Administra-
tion, the Secretary of the Air Force, and the heads of other appro-
priate agencies) from claims against any person by the United 
States for loss of or damage to property of the United States 
resulting from activities carried out under the license in connection 
with any particular launch. In no event shall a licensee or trans-
feree be required to obtain insurance or demonstrate financial 
responsibility under this subparagraph, with respect to the aggre-
gate of such claims arising out of any particular launch, in an 
amount which exceeds (I) $100,000,000 or (II) the maximum liability 
102 STAT. 3902 
PUBLIC LAW 100-657—NOV. 15, 1988 
insurance available on the world market at a reasonable cost, if 
such insurance is less than the amount in subclause (I). 
"(C) Each license issued or transferred under this Act shall re-
quire the licensee or transferee to enter into reciprocal waivers of 
claims with its contractors, subcontractors, and customers, and the 
contractors and subcontractors of such customers, involved in 
launch services, under which each party to each such waiver agrees 
to be responsible for any property damage or loss it sustains or for 
any personal injury to, death of, or property damage or loss sus-
tained by its own employees resulting from activities carried out 
under the license. 
"(D) The Secretary, on behalf of the United States, its agencies 
involved in launch services, and contractors and subcontractors 
involved in launch services, shall enter into reciprocal waivers of 
claims with the licensee or transferee, its contractors, subcontrac-
tors, and customers, and the contractors and subcontractors of such 
customers, involved in launch services, under which each party to 
each such waiver agrees to be responsible for any property damage 
or loss it sustains or for any personal injury to, death of, or property 
damage or loss sustained by its own employees resulting from 
activities carried out under the license. Any such waiver shall apply 
only to the extent that claims exceed the amount of insurance or 
demonstration of financial responsibility required under subpara-
graph (B). After consultation with the Administrator of the National 
Aeronautics and Space Administration and the Secretary of the Air 
Force, the Secretary may also waive, on behalf of the United States 
and any Federal agency, the right to recover any damages for loss of 
or damage to property of the United States to the extent insurance 
is not available by reason of policy exclusions which are determined 
by the Secretary to be usual for the type of insurance involved. 
"(2) Any insurance policy obtained, or demonstration of financial 
responsibility made, pursuant to a requirement described in para-
graph (1) shall protect the United States, its agencies, personnel, 
contractors, and subcontractors, and all contractors, subcontractors, 
and customers of the licensee or transferee, and all contractors and 
subcontractors of such customers, involved in providing the launch 
services, to the extent of their potential liabilities, at no cost to the 
United States. 
"(3) The Secretary shall determine the maximum probable loss 
under paragraph (1) (A) and (B) associated with activities under a 
license, within 90 days after a licensee or trsinsferee has required 
such a determination and has submitted all information the Sec-
retary requires to make such a determination. The Secretary shall 
amend such determination as warranted by new information. 
Reports. 
Within 12 months after the date of enactment of the Commercial 
Space Launch Act Amendments of 1988, and within each 12-month 
period thereafter, the Secretary shall submit to the Committee on 
Commerce, Science, and Transportation of the Senate and the 
Committee on Science, Space, and Technology of the House of 
Representatives a report on the current determinations with respect 
to all issued licenses and the reasons for those determinations. 
Reports. 
"(4) Within 6 months after the date of enactment of the Commer-
cial Space Launch Act Amendments of 1988, and within each 
12-month period thereafter, the Secretary shall review the amounts 
specified in paragraph (1) (AXI) and (BXI), and shall submit a report 
to the Congress which, if appropriate, contains a proposed adjust-
ment to such amounts to conform with altered liability expectations 
•'^gS^l'SC-!^.'• y • 
PUBLIC LAW 100-657—NOV. 15, 1988 
102 STAT. 3903 
and availability of insurance on the world market. Such proposed 
adjustment shall take effect 30 days after the submission of such 
report. 
"(b)(1) To the extent provided in advance in appropriations Acts or 
to the extent there is enacted additional legislative authority to 
provide for the payment of claims as submitted in the compensation 
plan outlined in paragraph (4), the Secretary shall provide for the 
payment by the United States of successful claims (including reason-
able expenses of litigation or settlement) of a third party against the 
licensee or transferee, or its contractors, subcontractors, or cus-
tomers, or the contractors or subcontractors of such customers, 
resulting from activities carried out pursuant to a license issued or 
transferred under this Act for death, bodily injury, or loss of or 
damage to property resulting from activities carried out under the 
license, but only to the extent that the aggregate of such successful 
claims arising out of any particular launch— 
"(A) is in excess of the amount of insurance or demonstration 
of financial responsibilities required under subsection (aXlXA); 
and 
"(B) is not in excess of the level that is $1,500,000,000 (plus 
any additional sums necessary to reflect inflation occurring 
after January 1,1989) above such amount. 
The Secretary shall not provide for payment of any part of such 
claim for which the death, bodily injury, or loss of or damage to 
property has resulted from willful misconduct by the licensee or 
transferee. To the extent insurance required pursuant to subsection 
(a)(1)(A) is not available to cover any such successful third party 
liability claim by reason of insurance policy exclusions determined 
by the Secretary to be usual for the type of insurance involved, the 
Secretary may provide for the payment of such excluded claims 
without regard to the limitation expressed in subparagraph (A). 
"(2) The payment of claims under paragraph (1) shall be subject 
to— 
"(A) notice to the United States of any claim, or suit associ-
ated with such claim, against a party described in paragraph (1) 
for death, bodily injury, or loss of or damage to property; 
"(B) participation or assistance in the defense by the United 
States, at its election, of that claim or suit; and 
"(C) approval by the Secretary of that portion of any settle-
ment which is to be paid out of appropriated funds of the United 
States. 
"(3) The Secretary may withhold payment under paragraph (1) if 
the Secretary certifies that the amount is not just and reasonable, 
except that the amount of any claim determined by the final 
judgment of a court of competent jurisdiction shall be deemed by 
the Secretary to be just and reasonable. 
"(4XA) If as a result of activities carried out under a license issued Reports. 
or transferred under this Act the aggregate of the claims arising out 
of a particular launch are likely to exceed the amount of insurance 
or demonstration of financial responsibility required under the 
license, the Secretary shall (i) make a survey of the causes and 
extent of dameige and (ii) expeditiously submit to the Congress a 
report setting forth the results of such survey. 
'(B) Not later than 90 days after any determination by a court President of U.S. 
indicating that the liability for the aggregate of claims arising out of 
a particular launch under such a license may exceed the amount of 
insurance or demonstration of financial responsibility required 
102 STAT. 3904 
PUBLIC LAW 100-657—NOV. 15, 1988 
under the license, the President, on the recommendation of the 
Secretary, shall submit to the Congress a compensation plan or 
plans that (i) outlines the aggregate dollar value of such claims; (ii) 
recommends sources of funding to pay for these claims; and (iii) 
includes any legislative language required to implement the com-
pensation plan or plans if additional legislative authority is re-
quired. No compensation plan for a single event or incident may 
exceed the aggregate of $1,500,000,000. 
"(C) Any compensation plan transmitted to the Congress pursuant 
to subparagraph (B) shall bear an identification number and shall be 
transmitted to both Houses of Congress on the same day and to each 
House while it is in session. 
"(DXi) The provisions of this subparagraph shall apply with re-
spect to consideration in the Senate of any such compensation plan 
and to Senate action on such compensation plan. 
"(ii) Any such compensation plan that requires additional appro-
priations or additional legislative authority must be considered by 
the Senate pursuant to this subparagraph within 60 calendar days 
of continuous session of Congress after the date on which such plan 
is transmitted to the Congress. 
"(iii) For the purposes of this subparagraph, the term 'resolution' 
means only a joint resolution of Congress the matter after the 
resolving clause of which is as follows: That the 
approves 
the compensation plan numbered 
submitted to the Con-
gress on 
, 19 .', the first blank space therein being filled 
with the name of the resolving House and the other blank spaces 
being appropriately filled; but does not include a resolution which 
includes more than one compensation plan. 
"(iv) A resolution once introduced with respect to a compensation 
plan shall immediately be referred to a committee (and all resolu-
tions with respect to the same compensation plan shall be referred 
to the same committee) by the President of the Senate. 
"(vXD If the committee of the Senate to which a resolution with 
respect to a compensation plan has been referred has not reported it 
at the end of 20 calendar days after its referral, it shall be in order 
to move either to discharge the committee from further consider-
ation of such resolution or to discharge the committee from further 
consideration with respect to such compensation plan which has 
been referred to the committee. 
"(II) A motion to discharge may be made only by an individual 
favoring the resolution, shall be highly privileged (except that it 
may not be made after the committee has reported a resolution with 
respect to the same compensation plan), and debate thereon shall be 
limited to not more than one hour, to be divided equally between 
those favoring and those opposing the resolution. An amendment to 
the motion shall not be in order, and it shall not be in order to move 
to reconsider the vote by which the motion was agreed to or dis-
agreed to. 
"(Ill) If the motion to discharge is agreed to or disagreed to, the 
motion may not be renewed, nor may another motion to discharge 
the committee be made with respect to any other resolution with 
respect to the same compensation plan. 
(viXD When the committee has reported, or has been discharged 
from further consideration of, a resolution, it shall be at any time 
thereafter in order (even though a previous motion to the same 
effect has been disagreed to) to move to proceed to the consideration 
of the resolution. The motion shall be highly privileged and shall not 
PUBLIC LAW 100-657—NOV. 15, 1988 
102 STAT. 3905 
be debatable. An amendment to the motion shall not be in order, 
and it shall not be in order to move to reconsider the vote by which 
the motion was agreed to or disagreed to. 
"(II) Debate on the resolution referred to in subclause (I) of this 
clause shall be limited to not more than 10 hours, which shall be 
divided equally between those favoring and those opposing such 
resolution. A motion further to limit debate shall not be debatable. 
An amendment to, or motion to recommit, the resolution shall not 
be in order, and it shall not be in order to move to reconsider the 
vote by which such resolution was agreed to or disagreed to. 
"(viiXD Motions to postpone, made with respect to the discharge 
from committee, or the consideration of a resolution or motions to 
proceed to the consideration of other business, shall be decided 
without debate. 
"(II) Appeals from the decision of the Chair relating to the ap-
plication of the rules of the Senate to the procedures relating to 
resolution shall be decided without debate. 
"(5) The provisions of paragraphs (1) through (4) shall apply only 
to each license issued or transferred under this Act for which a 
complete and valid application has been received by the Secretary 
prior to the date that is 5 years following the date of enactment of 
the Commercial Space Launch Act Amendments of 1988. 
"(c) The head of any Federal agency or department shall collect 
insurance proceeds or any other payment owed for the loss of or 
damage to Government property under its jurisdiction or control 
resulting from activities carried out under a license issued or trans-
ferred under this Act. Such proceeds or other payment shall be 
credited to the current applicable appropriations, funds, or accounts 
of that agency or department.". 
(b) Section 15(c) of the Commercial Space Launch Act (49 U.S.C. 
App. 2614(c)) is amended to read as follows: 
"(c) Consistent with the requirements of this Act, the Secretary 
shall establish requirements for proof of financial responsibility and 
such other assurances as may be necessary to protect the United 
States and its agencies and personnel from liability, death, bodily 
injury, or loss of or damage to property as a result of a launch or 
operation of a launch site involving Government facilities or person-
nel. The Secretary may not under this subsection relieve the United 
States of liability for death, bodily injury, or loss of or damage to 
property resulting from the willful misconduct of the United States 
or its agents.". 
SEC. 6. UNITED STATES LAUNCH INCENTIVES FOR CERTAIN SATELLITES. 
49 USC app. 2615 
(a) The requirements of subsection (aXlXB) of section 16 of the 
Commercial Space Launch Act (49 U.S.C. App. 2615), as amended by 
this Act, shall not apply to eligible satellites. 
(b) To the extent approved in appropriations Acts, the United 
States shall not require payment for the provision of launch services 
in connection with the commercial launch of an eligible satellite. 
(c) For purposes of this section, the term "eligible satellite" means 
a satellite that— 
(1) was under construction on August 15,1986; 
(2) was the subject of a launch services agreement or contract 
with the Nationsd Aeronautics and Space Administration, 
which as of August 15, 1986, was in effect and not yet carried 
out; and 
102 STAT. 3906 
PUBLIC LAW 100-657—NOV. 15, 1988 
(3) is licensed for launch under the Commercial Space Launch 
Act 
SEC 7. PREEMPTION OF SCHEDULED LAUNCHES. 
Section 15(b) of the Commercial Space Launch Act (49 U.S.C. App. 
2614(b)) is amended by adding at the end the jfollowing new 
paragraph: 
"(4XA) The Secretary, with the cooperation of the Secretary of 
Defense and the Administrator of the National Aeronautics and 
Space Administration, shall take steps to ensure that the launches 
of payloads with respect to which a launch date commitment from 
the United States has been obtained for a launch licensed under this 
Act are not preempted from acc^s to United States launch sites or 
launch property, except in cases of imperative national need. Any 
determination of imperative national need shall be made by the 
Secretary of Defense or the Administrator of the National Aero-
nautics and Space Administration, in consultation with the 
Secretary, and shaU not be del^ated. A licensee or transferee 
preempted from access to a launch site or launch property shall not 
be required to pay to the United States any amount for launch 
services solely atfaributable to the scheduled launch prevented by 
such preemption. 
Reports. 
"(B) The Secretary of Defense or the Administrator of the Na-
tional Aeronautics and Space Administration, in cooperation with 
the Secretary, as the case may be, shall report to the Ck)ngress 
within 7 days after any determination of imperative national need 
under subparagraph (A), including an explanation of the cir-
cumstances justifying such determination and a schedule for ensur-
ing the prompt launching of a preempted payload." 
SEC 8. STUDY OF PROCESS FOR SCHEDULING LAUNCHES. 
The Secretary of Transportation, in cooperation with the 
Secretary of Diefense and the Administrator of the National 
Aeronautics and Space Administration, and in consultation with 
representatives of the space launch and sateUite industry, shall 
study ways and means of scheduling (government and commercial 
payloads on commercial launch vehicles at (jovemment launch sites 
in a manner which— 
(1) makes the best practicable use of the launch property of 
the United Stotes; and 
(2) assures that the launch property of the United States that 
is available for commercial use will be available on a commer-
cially reasonable basis, 
consistent with the objectives of the Commercial Space Launch Act. 
Reports. 
The Secretary shall report the results of such study to the Congress 
within 90 days after the date of enactment of this Act. 
SEC. 9. COMMERCIAL SPACE LAUNCH SERVICE COMPETITION. 
It is the sense of the Congress that the United States should 
explore ways and means of developing a dialc^ue with appropriate 
foreign government representatives to seek the development of 
guidelines for access to launch services by satellite builders and 
users in a manner that assures the (X)nduct of reasonable and fair 
international competition in commercial space activities. 
PUBLIC LAW 100-657—NOV. 15, 1988 
102 STAT. 3907 
SEC. 10. LAUNCH VEHICLE RESEARCH AND DEVELOPMENT. 
. 
The Administrator of the National Aeronautics and Space 
Administration shall, in consultation with representatives of the 
space launch and satellite industry, design a program for the sup-
port of research into launch systems component technologies, for the 
purpose of developing higher performance and lower cost United 
States launch vehicle technologies and systems available for the 
launch of commercial and Government spacecraft into orbit. The Reports. 
Administrator shall submit a report outlining such program to the 
Congress within 60 days after the date of enactment of this Act. 
SEC. 11. APPLICABILITY TO LICENSES. 
49 USC app. 2603 
This Act, and the amendments made by this Act, shall apply to all 
licenses issued under the Commercial Space Launch Act before, on, 
or after the date of enactment of this Act. 
Approved November 15, 1988. 
LEGISLATIVE HISTORY—H.R. 4399: 
HOUSE REPORTS: No. 100-639 (Comm. on Science, Space, and Technology). 
SENATE REPORTS: No. 100-593 (Comm. on Commerce, Science, and Transporta-
tion). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
May 24, considered and passed House. 
Oct. 14, considered and passed Senate, amended. 
Oct. 21, House concurred in Senate amendment.