Date: 2013-12-02
Speaker: EDDIE BERNICE JOHNSON (democrat)
Chamber: H
State: Texas

Mr. Speaker. I yield myself such time as I may consume. I rise today to speak in support of H.R. 3547. a bill to extend the application of certain space launch liability provisions through 2014. First established by Congress as part of the Commercial Space Launch Act Amendments of 1988. the commercial space transportation risksharing liability and insurance regime has been extended seven times since its original enactment. The current extension expires on December 31 of this year. so it is important for Congress to act now so that there is sufficient time for this legislation to make its way to the Presidents desk before the current authority expires. The liability and insurance regime that would be extended by this legislation is threetiered. In the first tier. licensed commercial launch providers are required to purchase thirdparty liability insurance to compensate for possible losses from thirdparty claims by the uninvolved public up to the maximum probable loss level determined by the Federal Aviation Administration as part of its licensing process. or a maximum level of $500 million. In the second tier. for claims above those maximum probable losses. the U.S. Government may pay successful liability claims up to $1.5 billion in 1989 dollars. or about $2.8 billion in todays dollars. subject to funds being appropriated by Congress for that purpose. In the third tier. for successful claims above the aforementioned $2.8 billion. the licensee assumes responsibility for payment. It should be noted that the U.S. Government has not appropriated a single dollar to pay for the thirdparty claims in the twodecade history of this program. The existence of the liability risksharing regime has helped enable the development and the sustainment of a commercial space launch industry in the United States. including the emergence of several new companies in recent years. In addition. the regime has allowed U.S. companies to remain competitive with their international counterparts. almost all of whose governments provide similar or more generous risksharing liability regimes to that of the U.S. The commercial space transportation liability and insurance regime has worked. It has not cost the American taxpayer a single dollar in claims. and it has strengthened U.S. competitiveness in commercial space launchand this is not a blank check since any potential payments for claims would be subject to prior congressional appropriation. The bill before us today extends the liability risksharing regime for a period of 1 year. While that is less than some in the industry would like. I believe it is an appropriate length. That is because much has changed since the risksharing liability and indemnification regime was established in 1988 and because the commercial space launch industry continues to evolve over time. Commercial providers are delivering spacecraft to orbit and commercial resupply services to the international space station. and companies are working hard toward providing commercial human spaceflight. I am excited about the entrepreneurial spirit many of these new companies exhibit. and I want them to succeed. but I also want to ensure that the Nations commercial space transportation legislation reflects the changing industry and protects the American public. The commercial space industry has been evolving in ways that were not envisioned when the risk regime was first established. and we need to evaluate if changes are needed to this decadesold law. The 1year extension provides the Congress with the time to conduct necessary hearings. perform our due diligence. and enable the enactment of a comprehensive update to existing commercial space legislation. Mr. Speaker. in closing. I would like to thank the chairman of the Science. Space. and Technology Committee. Mr. LAMAR SMITH. the chairman of the Space Subcommittee. STEVE PALAZZO. and the subcommittees ranking mem-