51 U.S.C. § 50302 — Loan guarantees for production of com-

Page 111 TITLE 51—NATIONAL AND COMMERCIAL SPACE PROGRAMS § 50302 space systems, and ground administration and control facilities and associated equipment, necessary for the provision of in-space trans- portation services. (4) IN-SPACE TRANSPORTATION VEHICLE.—The term ‘‘in-space transportation vehicle’’ means a vehicle designed— (A) to be based and operated in space; (B) to transport various payloads or ob- jects from one orbit to another orbit; and (C) to be reusable and refueled in space. (5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Defense. (6) UNITED STATES COMMERCIAL PROVIDER.— The term ‘‘United States commercial pro- vider’’ means any commercial provider orga- nized under the laws of the United States that is more than 50 percent owned by United States nationals. (Pub. L. 111–314, § 3, Dec. 18, 2010, 124 Stat. 3401.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 50301 .......... 42 U.S.C. 14753. Pub. L. 107–248, title IX, § 904, Oct. 23, 2002, 116 Stat. 1576. Statutory Notes and Related Subsidiaries FINDINGS Pub. L. 107–248, title IX, § 902, Oct. 23, 2002, 116 Stat. 1573, provided that: ‘‘Congress makes the following findings: ‘‘(1) It is in the national interest to encourage the production of cost-effective, in-space transportation systems, which would be built and operated by the private sector on a commercial basis. ‘‘(2) The use of reusable in-space transportation systems will enhance performance levels of in-space operations, enhance efficient and safe disposal of sat- ellites at the end of their useful lives, and increase the capability and reliability of existing ground-to- space launch vehicles. ‘‘(3) Commercial reusable in-space transportation systems will enhance the economic well-being and national security of the United States by reducing space operations costs for commercial and national space programs and by adding new space capabilities to space operations. ‘‘(4) Commercial reusable in-space transportation systems will provide new cost-effective space capa- bilities (including orbital transfers from low altitude orbits to high altitude orbits and return, the correc- tion of erroneous satellite orbits, and the recovery, refurbishment, and refueling of satellites) and the provision of upper stage functions to increase ground- to-orbit launch vehicle payloads to geostationary and other high energy orbits. ‘‘(5) Commercial reusable in-space transportation systems can enhance and enable the space explo- ration of the United States by providing lower cost trajectory injection from earth orbit, transit trajec- tory control, and planet arrival deceleration to sup- port potential National Aeronautics and Space Ad- ministration missions to Mars, Pluto, and other plan- ets. ‘‘(6) Satellites stranded in erroneous earth orbit due to deficiencies in their launch represent substantial economic loss to the United States and present sub- stantial concerns for the current backlog of national space assets. ‘‘(7) Commercial reusable in-space transportation systems can provide new options for alternative plan- ning approaches and risk management to enhance the mission assurance of national space assets. ‘‘(8) Commercial reusable in-space transportation systems developed by the private sector can provide in-space transportation services to the National Aer- onautics and Space Administration, the Department of Defense, the National Reconnaissance Office, and other agencies without the need for the United States to bear the cost of production of such systems. ‘‘(9) The availability of loan guarantees, with the cost of credit risk to the United States paid by the private-sector, is an effective means by which the United States can help qualifying private-sector com- panies secure otherwise unattainable private financ- ing for the production of commercial reusable in- space transportation systems, while at the same time minimizing Government commitment and involve- ment in the development of such systems.’’ § 50302. Loan guarantees for production of com- mercial reusable in-space transportation (a) AUTHORITY TO MAKE LOAN GUARANTEES.— The Secretary may guarantee loans made to eli- gible United States commercial providers for purposes of producing commercial reusable in- space transportation services or systems. (b) ELIGIBLE UNITED STATES COMMERCIAL PRO- VIDERS.—The Secretary shall prescribe require- ments for the eligibility of United States com- mercial providers for loan guarantees under this section. Such requirements shall ensure that eli- gible providers are financially capable of under- taking a loan guaranteed under this section. (c) LIMITATION ON LOANS GUARANTEED.—The Secretary may not guarantee a loan for a United States commercial provider under this section unless the Secretary determines that credit would not otherwise be reasonably available at the time of the guarantee for the commercial re- usable in-space transportation service or system to be produced utilizing the proceeds of the loan. (d) CREDIT SUBSIDY.— (1) COLLECTION REQUIRED.—The Secretary shall collect from each United States commer- cial provider receiving a loan guarantee under this section an amount equal to the amount, as determined by the Secretary, to cover the cost, as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)), of the loan guarantee. (2) PERIODIC DISBURSEMENTS.—In the case of a loan guarantee in which proceeds of the loan are disbursed over time, the Secretary shall collect the amount required under this sub- section on a pro rata basis, as determined by the Secretary, at the time of each disburse- ment. (e) OTHER TERMS AND CONDITIONS.— (1) PROHIBITION ON SUBORDINATION.—A loan guaranteed under this section may not be sub- ordinated to another debt contracted by the United States commercial provider concerned, or to any other claims against such provider. (2) RESTRICTION ON INCOME.—A loan guaran- teed under this section may not— (A) provide income which is excluded from gross income for purposes of chapter 1 of the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.); or (B) provide significant collateral or secu- rity, as determined by the Secretary, for other obligations the income from which is so excluded. Page 112 TITLE 51—NATIONAL AND COMMERCIAL SPACE PROGRAMS § 50501 (3) TREATMENT OF GUARANTEE.—The guar- antee of a loan under this section shall be con- clusive evidence of the following: (A) That the guarantee has been properly obtained. (B) That the loan qualifies for the guar- antee. (C) That, but for fraud or material mis- representation by the holder of the loan, the guarantee is valid, legal, and enforceable. (4) OTHER TERMS AND CONDITIONS.—The Sec- retary may establish any other terms and con- ditions for a guarantee of a loan under this section as the Secretary considers appropriate to protect the financial interests of the United States. (f) ENFORCEMENT OF RIGHTS.— (1) IN GENERAL.—The Attorney General may take any action the Attorney General con- siders appropriate to enforce any right accru- ing to the United States under a loan guar- antee under this section. (2) FORBEARANCE.—The Attorney General may, with the approval of the parties con- cerned, forbear from enforcing any right of the United States under a loan guaranteed under this section for the benefit of a United States commercial provider if such forbearance will not result in any cost, as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)), to the United States. (3) UTILIZATION OF PROPERTY.—Notwith- standing any other provision of law and sub- ject to the terms of a loan guaranteed under this section, upon the default of a United States commercial provider under the loan, the Secretary may, at the election of the Sec- retary— (A) assume control of the physical asset fi- nanced by the loan; and (B) complete, recondition, reconstruct, renovate, repair, maintain, operate, or sell the physical asset. (g) CREDIT INSTRUMENTS.— (1) AUTHORITY TO ISSUE INSTRUMENTS.—Not- withstanding any other provision of law, the Secretary may, subject to such terms and con- ditions as the Secretary considers appropriate, issue credit instruments to United States commercial providers of in-space transpor- tation services or systems, with the aggregate cost (as determined under the provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)) of such instruments not to exceed $1,500,000,000, but only to the extent that new budget authority to cover such costs is pro- vided in subsequent appropriations Acts or au- thority is otherwise provided in subsequent appropriations Acts. (2) CREDIT SUBSIDY.—The Secretary shall provide a credit subsidy for any credit instru- ment issued under this subsection in accord- ance with the provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). (3) CONSTRUCTION.—The eligibility of a United States commercial provider of in-space transportation services or systems for a credit instrument under this subsection is in addi- tion to any eligibility of such provider for a loan guarantee under other provisions of this section. (Pub. L. 111–314, § 3, Dec. 18, 2010, 124 Stat. 3402.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 50302 .......... 42 U.S.C. 14752. Pub. L. 107–248, title IX, § 903, Oct. 23, 2002, 116 Stat. 1574. In subsection (f)(2), the word ‘‘forbear’’ is substituted for ‘‘forebear’’ to correct an error in the law. In subsection (g)(1), the words ‘‘services or systems’’ are substituted for ‘‘services or system’’ to correct an error in the law. Editorial Notes REFERENCES IN TEXT The Federal Credit Reform Act of 1990, referred to in subsec. (g)(1), (2), is title V of Pub. L. 93–344, as added by Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–609, which is classified generally to sub- chapter III (§ 661 et seq.) of chapter 17A of Title 2, The Congress. For complete classification of this Act to the Code, see Short Title note set out under section 621 of Title 2 and Tables. CHAPTER 505—COMMERCIAL SPACE COMPETITIVENESS Sec. 50501. Definitions. 50502. Launch voucher demonstration program. 50503. Anchor tenancy and termination liability. 50504. Use of Government facilities. 50505. Test facilities. 50506. Commercial Space Achievement Award. § 50501. Definitions In this chapter: (1) AGENCY.—The term ‘‘agency’’ means an executive agency as defined in section 105 of title 5. (2) ANCHOR TENANCY.—The term ‘‘anchor ten- ancy’’ means an arrangement in which the United States Government agrees to procure sufficient quantities of a commercial space product or service needed to meet Government mission requirements so that a commercial venture is made viable. (3) COMMERCIAL.—The term ‘‘commercial’’ means having— (A) private capital at risk; and (B) primary financial and management re- sponsibility for the activity reside with the private sector. (4) COST EFFECTIVE.—The term ‘‘cost effec- tive’’ means costing no more than the avail- able alternatives, determined by a comparison of all related direct and indirect costs includ- ing, in the case of Government costs, applica- ble Government labor and overhead costs as well as contractor charges, and taking into ac- count the ability of each alternative to accom- modate mission requirements as well as the related factors of risk, reliability, schedule, and technical performance. (5) LAUNCH.—The term ‘‘launch’’ means to place, or attempt to place, a launch vehicle and its payload, if any, in a suborbital trajec- tory, in Earth orbit in outer space, or other- wise in outer space. (6) LAUNCH SERVICES.—The term ‘‘launch services’’ means activities involved in the