Mr. President, today I rise with my colleagues, Senators Bingaman, Nelson of Florida, Hutchison, Domenici, Feinstein, and Dole, to introduce the Spaceport Equality Act of 2007, a bill to help bring…
Mr. President, today I rise with my colleagues, Senators Bingaman, Nelson of Florida, Hutchison, Domenici, Feinstein, and Dole, to introduce the Spaceport Equality Act of 2007, a bill to help bring additional investment to the space transportation industry.
Last summer, Kazakhstan launched its first satellite, catapulting them into the space transportation industry. Also joining the race for space launch capacity are Singapore, Australia, Canada, and the United Arab Emirates, with seven new commercial spaceports proposed between the four countries. With new entrants being added to the space transportation marketplace, is the U.S. falling behind in the race for access to space?
The U.S. once dominated the commercial satellilte-manufacturing field with an average market share of 83 percent; however, that market share has since declined to below 50 percent. The U.S. satellite industry faces increasing pressure to consider the use of foreign launch vehicles and launch sites, due to the lack of sufficient domestic launch capability. An even smaller share of U.S. manufactured satellites is actually launched from U.S. spaceports.
This past year, only 2 of the 21 commercial launches worldwide were launched from locations in the United States, that is less than 10 percent of the market share. This comes at a loss of billions of dollars to the U.S. economy.
These are just some of the many reasons why my colleagues and I are introducing the Spaceport Equality Act.
The space economy is made up of manufacturers, service providers, and technologists in both the government and private sector that deploy and operate launch vehicles, satellites, and space platforms. Many everyday goods and services rely on space infrastructure, including: broadcast, cable, and satellite television; global Internet services; satellite radio; and cellular and international phone calls.
Satellites are also used global positioning systems, known as GPS, which enables us to have hands-on directions in our cars and other vehicles. GPS is also influential in the trucking, aviation, and maritime industries for day-to-day operations, and for our Nation's military operations. Thousands of gas stations use inexpensive small satellite dishes to connect to credit card networks so customers can pay instantly at the pump. Satellites also generate 90 percent of the weather forecasting data in the U.S., and are used to track hurricanes, tsunamis, and other weather phenomenon.
These satellites are launched vertically atop of rockets, propelling them into orbit in space. Because most U.S. space-launch facilities are operated by NASA and the Air Force, priority for launches at these facilities is given to government projects. This means our commercial satellite needs take a backseat to Government operations. This often leaves U.S. commercial satellite ventures without reliable launch availability.
This in turn has forced many companies seeking manufacturing and launch services toward our international competitors.
Commercial spaceports are subdivisions of State governments that provide additional launch infrastructure than that which is available at Federal facilities. They attract and promote the U.S. commercial space transportation industry. Spaceport authorities function much like airport and port authorities by providing economic and transportation incentives to the industry, which in turn benefits the surrounding communities. Many States are forming space authorities to pursue ways of developing space transportation infrastructure.
The Florida Space Authority, now known as ``Space Florida,'' was the first such entity, and was created as a subdivision of the Florida State Government by Florida's Governor and State legislature in 1989. Space Florida focuses on expanding and strengthening my state's space industry through partnering with the commercial space industry to improve space transportation and to provide innovative, forward- thinking solutions to the challenges facing this evolving industry.
The last few years have begun a new phase in space exploration. Spaceports presently operate in Florida, California, Virginia, and Alaska, and efforts are currently underway in New Mexico and Oklahoma to establish spaceports for the new emerging space tourism industry. Still additional commercial spaceports have been considered in the following states: Alabama, California, Montana, Nevada, Oklahoma, South Dakota, Texas, Utah, Washington, and Wisconsin.
The commercial space transportation industry includes not only spaceports themselves, but also companies that develop the needed infrastructure for testing and servicing launch vehicles. When including these industry partners with spaceports, at least 23 States are directly affected by the commercial space transportation industry. Both spaceports and industry partners face increasing pressure from Government sponsored or subsidized competitors in various countries across Europe, and also in China, Japan, India, and Russia. And soon they will face new competitors in Australia, Canada, Singapore, and the United Arab Emirates.
Commercial space transportation is a growing part of the U.S. economy. In 2004, this industry alone generated a total of nearly $98.1 billion in economic activity, more than $25 billion in earnings, and over 550,000 jobs. The Federal Aviation Administration, FAA, recently issued a report on 2006 launch activities, in that report, it was noted that in 2006, U.S. launches generated approximately $140 million in revenues.
A 2004 Gallup poll shows overwhelming public support for space exploration. Roughly 80 percent of Americans agree that ``America's space program helps give America the scientific and technological edge it needs to compete in the international marketplace.'' and 76 percent agree that our space program ``benefits the nation's economy'' and inspires ``students to pursue careers in technical fields.''
The space industry has also led to a number of ``spin-off'' technologies,
those influenced by space technology research and development.
Home roof insulation and air filtration, anti-lock brakes, athletic shoes, vehicle protective airbags, cellular phones, and Lasik surgery all owe their development to space-based research and technology. The list of space ``spin-off'' technologies is estimated to exceed 40,000. These related technologies have helped employ tens of millions of Americans. Encouraging commercial investment in the space industry and increasing U.S. market share in this industry will certainly lead to additional innovation and technology that will positively influence other fields.
As you can see, this once Government-dominated industry is now becoming a diverse mix of Government and commercial entities, also leading the way into future avenues of commercial space transportation, such as space tourism.
The increase in recent commercial launches includes the debut of the first commercial crewed suborbital launches of SpaceShipOne, the beginnings of public space travel. ``Space tourism,'' as public space travel is now referred to, has the potential to become a major growth industry. Recent market studies have shown that, within 20 years, space tourism has the potential to become a multibillion-dollar industry.
Even though the average American may not be able to participate in public space travel, its potential impact on our economy and international competitiveness is something to be appreciated. Space tourism industry players expect there to be a market demand of at least 15,000 Americans per year to travel into suborbit and orbital flights. This would require an estimated 665 launches per year by 2010.
If the U.S. continues as is, we will only be able to capture a 10- percent market share, at best, of this emerging industry. If needed infrastructure is added, however, the U.S. could potentially pick up 60 to 70 percent of space flight demand by 2010. Every launch that we do not provide for in the U.S. means a loss to our economy, and a gain for our international competitors. The Federal Aviation Administration's Commercial Space Transportation division expects a $3 billion dollar loss to our economy if we do not meet the rising demand for space tourism.
Currently, U.S. launch facilities are few and most are owned and operated by the Federal Government, putting commercial users in direct competition with the U.S. military, NASA, and other Government entities that, as I mentioned earlier, receive priority over commercial projects.
Recently, the U.S. Air Force provided license to Space Exploration Technologies, known as SpaceX, to utilize one of the decommissioned launch complexes at Cape Canaveral Air Force Station for its commercial launch ventures.
The utilization of existing Federal resources by commercial ventures will open up opportunity for further commercial launches, but this alone will not afford America the resources it needs to remain competitive internationally. If the U.S. is to remain competitive in the commercial space industry, added and improved infrastructure will be needed to support this growing industry.
On a more local note, my own State of Florida could stand to gain much by way of economic development from increased investment in Spaceport infrastructure.
According to recent studies, increased spaceport infrastructure and activity in Florida could mean as much as $29.7 million in additional economic activity by the year 2015, this does not include the economic activity generated from increased tourism, secondary contracts, and spin-off technologies.
Other modes of transportation, highways, airports, and seaports, currently enjoy a tax incentive for meeting their infrastructure needs, so why not spaceports? Perhaps this policy made sense in the past, when space did not have the enormous potential for commercial growth that it now does. Our ability to utilize space is more apparent than ever before; we need to acknowledge this emerging reality.
This Spaceport Equality Act of 2007 would provide spaceports with the same tax incentives granted to airports, seaports, rail, and other transit projects under the exempt facility bond rules. With international competition on the rise, our Nation's spaceports are a vital component of the infrastructure needed to expand and enhance the U.S. role in the international space arena. The Spaceport Equality Act is an important step to increasing our competitiveness in this field, because it will stimulate investment in expanding and modernizing our space launch facilities and lower the costs of financing spaceport projects.
Since 1968, tax-exempt bonds have played a crucial role in meeting airport investment needs, with 50 percent or more of major airport projects being financed through municipal tax-exempt bonds. By extending this favorable tax treatment to spaceports, this bill will help meet spaceport needs and increase our Nation's ability to compete with expanded international interests in space exploration and technology. Similar legislation has been considered since the 1980s, and we cannot afford to wait any longer to address the needs of this important sector.
This proposal does not provide direct Federal spending to our commercial space transportation industry, but rather, it creates the conditions necessary to stimulate private capital investment in industry infrastructure. By issuing tax-free bonds to finance spaceport infrastructure, space authorities could provide site-specific and vehicle-specific tailoring to promote the competition and innovation necessary to maintain the U.S. competitive edge in the space transportation industry.
This is an efficient means for achieving our space transportation needs, and I urge my colleagues in the Senate to join us in this most important effort by cosponsoring this bill.
Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.