Besides receiving support from the two senators, who regularly play important roles in space-related issues, the bill has also gained the attention of Rep. David Weldon (R-Florida) and Rep. W.J. Billy Tauzin (R-Louisiana).
Smaller space launching companies that were vehemently opposed to a similar bill that was introduced by Breaux last year are, in the words of one industry insider, "reevaluating our position." Last year's version failed to gain support in the Senate and was never considered by the House of Representatives.
When he introduced this year's version of the bill, Breaux said he was concerned about the weakness of the United States' space launch industry.
"I, for one, do not think I would want to drive a Ukrainian car, let alone ride in a Ukrainian rocket," Breaux said on the floor of the Senate. "But that is what is happening, because we don't have enough access in the private industry to U.S.-built space transportation vehicles that can launch U.S.-built satellites."
The U.S. launching industry was plagued by a string of failures earlier this year, forcing American companies to rely on foreign rockets to get their payloads into orbit.
In countries like Ukraine, France, and China, the launch industry is funded primarily by the government. U.S. companies rely on private funding, leaving them at a disadvantage, according to Breaux. Because of the riskiness of space projects, private companies have had difficulties raising money. Government backing would lower the risk, which would encourage investors to support the companies, Breaux said.
The bill would create the U.S. Commercial Space Transportation Vehicle Industry Loan Guarantee program, which would be administered by the Secretary of Transportation. The proposed bill is patterned after the Title XI shipbuilding loan guarantee program. Under the plan, the federal government would guarantee loans to a qualified company. The company would search for a loan from a private investor. If the company fails, the government would pay back the loan.
The legislation would provide $500 million in loan guarantees, which could trigger as much as $5 billion in loans, according to Breaux.
Mark Ashby, who until August was a legislative counsel for Breaux, said that many of the smaller space vehicle companies were opposed to the bill because they were afraid that the benefits would go to the larger companies. (Ashby resigned from Breauxs staff to take a position with Bell South.)
"Once they understood we were not fronting for the big guys, they came to trust us," Ashby said. "They had to read it and understand what was in the bill rather than rely on what others were telling them."
Although the aerospace giant Lockheed Martin supports the bill and Boeing is opposed to it, the future of the legislation is dependent on the backing of the many relatively small companies that populate the launch vehicle industry, Ashby said.
Rotary Rocket Co., the Redwood Shores, California company working on the Roton re-usable launch vehicle, is re-evaluating its opposition to the bill, according to David Gump, one of the company's five directors.
"I am not sure I could say we are for or against it," Gump said. "But we are not as dogmatic as we were. We are re-evaluating our position because we have run into so many problems raising money."
Gump attributed Rotary's difficulty in raising funds to the inordinate amount of money that is being invested in Internet-related companies. "Everyone is seduced by the .com world," he said.
Despite the difficulty raising money, he is still leery of supporting the bill.
"We don't want a federal agency anointing winners and losers," Gump said. "We are very concerned that someone who is better at writing loan proposals than building rockets will receive the funding."
Executives with San Bernadino, Calfornia's Kelly Space & Technology, Inc. are also hesitant to offer the bill their full support.
"This year's version is an improvement," said Michael Gallo, Kelly's Executive Vice President and Chief Operating Officer. "We could find ourselves being supporters if it had the broadest application and included guys like us."
Both Gump and Ashby said that this year's version of the bill would help companies who have already invested time and money in space projects.
"Last year was `give us some promises,'" Gump said. "This year it is `show me the money.'"
Ashby described it as a change from a "selection process" to a "qualification process."
"The qualifications will eliminate every guy walking down the street with a slingshot," Ashby said.
In order to qualify for the loan guarantees, a company has to have already raised $10 million and be working to obtain a license from the Federal Aviation Administration.
Rotary, which is approximately three years old, has already invested $30 million in designing its vehicle but is having trouble raising the additional $90 million it needs to get the vehicle into space, Gump said.
Kelly, which is six years old, has already invested $12 million in a vehicle, which would be smaller than Rotary's vehicle, Gallo said.
The Kelly vehicle is expected to cost between $30 and $40 million and should be ready to be launched in approximately two years, according to Michael Kelly, who is chairman of the company's board and Chief Technical Officer.
Although it appears that Kelly would meet the current qualifications for receiving loan guarantees, Gallo and Kelly are concerned that, depending on how the proposed loan guarantee program is administered, their company could be excluded.
"The implementation of the bill, how it is administered, is as important as the writing of the bill," Kelly said. "It needs to be as inclusionary as possible. The big boys do not need loan guarantees."
Ashby, Breaux's former aide, concedes "there are still some dots that need to be connected," but is nevertheless is optimistic about the bill's future.
Ashby sees Sens. Graham and Reid's support for the bill as the next logical step in what has been a methodical process. "Because of them, I think others will take a hard look at the bill," Ashby said.
Rep. David Weldon, who is a member of the House Space and Aeronautics Subcommittee, is keeping a careful eye on the bill, said Brendan Curry, his legislative assistant.
Rep. Billy Tauzin is "supportive of the concept" and will decide in the next few weeks if he will introduce a similar bill in the House, his spokesman Ken Johnson said.
Breaux's staff contacted Tauzin's staff, which is now "going over (Breaux's bill) with a fine-tooth comb," Johnson said. "Before he signs off on it, Rep. Tauzin wants to make sure the American taxpayer is not left holding the bill for a failed space project."
Ultimately, passage of the bill will be based on Breaux's ability to generate momentum for it and Graham and Reid's support is the first step in that direction, according to Johnson.
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