Mr. BRACKEEN. This is the single, overriding impediment to continue the aggressive expansion that we feel, and it's very important.

Mr. DUNBAR. We believe that the risks are unacceptable to our corporation and we think this bill would go a long ways to setting that straight.

Mr. BOGGS. We think that the provisions of the bill are very important and we support them, and we think it is a real financial concern for our company without them.

Mr. SLAYTON. Yes, like everybody else, we're in support of it. As I indicated earlier, they are not as critical to a small company as they are to a big one, because we don't have as many resources at risk. But obviously, it's to our benefit.

Mr. NELSON. Okay. One final question.

If some facsimile of this legislation does become law, where do you think that the commercial ELVs will be in the next decade, American commercial ELVs?

Mr. YARDLEY. I think they'll largely exist for the use of the Air Force and NASA.

Mr. BRACKEEN. John Yardley has said in this current era it's a sellers' market. We all still have available launch slots. But I do agree that in the mid-90s or so, when perhaps the Japanese competitor comes on stream, and should the Soviets and the Chinese become established, we all won't be at this table. Perhaps some other approach might be here, but it'll be quite difficult.

Mr. DUNBAR. I believe the future is very bright, given that we can solve the competitive threat of an uneven playing field from the international competitors.

Mr. BOGGS. I agree with Mr. Yardley, to the extent that the military and NASA role for commercial launch services will be very important. They may well overshadow the satellite and other research applications such as micro-gravity research. I think the necessity of cutting down the cost of the military and NASA activities is going to be a driving force to bring commercialization into full fruition.

Mr. SLAYTON. I would agree with John when you can find a discussion as to what people are making money on today, which is telecommunications. However, we're in a different niche of the market. We forecast that in the different areas that are not even being exploited today, that that's really where the big growth is likely to happen, and we're very optimistic that some of that stuff is going to happen very shortly and some of it will dribble on over to the bigger launch vehicles.

Mr. NELSON. Gentlemen, it's been enlightening. Thank you very much. Have a good day, and the meeting is adjourned.

[Whereupon, at 12:25 a.m., the subcommittee was adjourned.]

APPENDIX 1

I

100TH CONGRESS 1ST SESSION

H. R. 3765

To facilitate commercial access to space, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

DECEMBER 15, 1987

Mr. NELSON of Florida (for himself, Mr. ROE, Mr. LUJAN, Mr. Walker, Mr. BROWN of California, Mr. LEWIS of Florida, Mr. VOLKMER, Mr. PACKARD, Mr. HALL of Texas, Mr. HENRY, Mr. MCCURDY, Mr. SLAUGHTER of Virginia, Mr. MINEta, Mrs. Morella, Mr. MacKay, Mr. TorricELLI, Mr. CHAPMAN, Mr. Nowak, Mr. PERKINS, Mr. NAGLE, Mr. SKAGGS, and Mr. LAGOMARSINO) introduced the following bill; which was referred to the Committee on Science, Space, and Technology

A BILL

To facilitate commercial access to space, and for other purposes.

1

Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; FINDINGS.

4 (a) This Act may be cited as the "Commercial Space

5 Launch Act Amendments of 1987".

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(1) a United States space launch industry is an es

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sential component of national efforts to assure access

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to space for Government and commercial users;

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(2) the Federal Government should encourage, fa

cilitate, and promote the use of the United States space launch industry in order to continue United

States aerospace preeminence;

(3) the United States space launch industry must

be competitive in the international marketplace;

(4) Federal Government policies should recognize the responsibility 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 com

ponent technology and development.

15 SEC. 2. RESPONSIBILITIES UNDER COMMERCIAL SPACE

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LAUNCH ACT.

Section 5(a)(1) of the Commercial Space Launch Act

18 (49 U.S.C. App. 2604(a)(1)) is amended to read as follows: "(1) encourage and facilitate commercial space launches by the private sector, consistent with the

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space policies of the United States as established in public law; and".

23 SEC. 3. DEFINITION OF DIRECT COSTS.

24 (a) Section 15(b)(1) of the Commercial Space Launch

25 Act (49 U.S.C. App. 2614(b)) is amended by inserting at the

HR 3765 IH

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1 end the following: "For purposes of this paragraph, the term 2 'direct costs' means the costs incurred by the United States 3 as a result of an acquisition of launch property or launch 4 services which exceed the costs that would have been in5 curred if such acquisition had not occurred.".

6 (b) Section 15(a) of the Commercial Space Launch Act 7 (49 U.S.C. App. 2614(a)) is amended by adding at the end 8 the following new sentence: "The Secretary shall not take 9 such actions if substantially equivalent launch property or 10 services are otherwise commercially available from a domes11 tic source on reasonable terms and conditions.".

12 SEC. 4. INSURANCE REQUIREMENTS OF LICENSEE.

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(a) Section 16 of the Commercial Space Launch Act (49 14 U.S.C. App. 2615) is amended by striking "SEC. 16.” and all 15 that follows through "other appropriate agencies." and in

16 serting in lieu thereof the following:

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"SEC. 16. (a)(1)(A) Each license issued or transferred

18 under this Act shall require the licensee—

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“(i) to obtain liability insurance; or

"(ii) to demonstrate financial responsibility

21 in an amount sufficient to compensate the maximum probable 22 loss from claims against any party by a person or entity, 23 other than the licensee or a contractor, subcontractor, or cus24 tomer of the licensee involved in providing the launch serv25 ices, for death, bodily injury, or loss of or damage to property

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