WASHINGTON (States News Service) - The House has approved a "straight-forward bill," in the words of Rep. James Sensenbrenner (R-Wisconsin), to extend insurance coverage for the commercial space launch industry for five years, encouraging private sector involvement in launches.
"I am very pleased that the Science Committee did its part in ensuring the health of the industry by moving this bill through the House today," Sensenbrenner said in a press release Tuesday.
The Commercial Space Transportation Competitiveness Act of 1999, which passed by a voice vote on the House floor on Monday, would extend commercial space transportation indemnification by five years. It would also authorize increased funding for
Indemnification is an insurance policy for third-party claims. The Federal Aviation Agency (FAA) requires launch companies to purchase such insurance, in an amount determined on a case-by-case basis, to protect any government or civilian property near a launch site. If a third-party claim demands damages in an amount exceeding the prescribed level of insurance, the bill allows the FAA to ask Congress for up to $1.5 billion to pay the judgment. (However, there is no guarantee lawmakers would agree to supply the money.)
The bill's supporters in Congress hope that by reducing the chances of costly lawsuits, companies will be encouraged to enter the launch industry.
"Indemnification is in the nation's best interest," said Rep. Nick Lampson (D-Texas), who voted for the bill.
The government's role in indemnification was last extended in 1993. So far, it has never been needed, because no third party has ever sued for damages in a launch.
The bill would increase funding over the next three years for the Office of Commercial Space Transportation, housed in the Federal Aviation Agency. The office would receive $7 million as requested by the agency.
The measure also directs the office to come up with a long-term liability risk-sharing regime for launches, so the government would "shoulder less risk," said Rep. Dana Rohrabacher (R-California).
"We want to give U.S. industry a stable business environment so they can be more competitive in the international marketplace," Rohrabacher said when he introduced the bill in July. "However, we also want to start the process now of planning for risk-sharing in 2005 and beyond."
"We're asking launch companies how and when we should change current regulations," he said Monday.
The Office of Commercial Space Transportation may seek a contractor to conduct the study, which the bill gives them two years to accomplish.
The bill proposes increased funding for the Commerce Department's Office of Space Commercialization, starting at $530,000 for next year.
In the Senate, a bill similar to Rohrabacher's awaits a vote on the floor. The measure, introduced by presidential hopeful John McCain (R-Arizona), also extends indemnification for five years.
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