UNCLASSIFIEDFOR OFFICIAL USE ONLY Do D Executive Agent

UNCLASSIFIED//FOR OFFICIAL USE ONLY Do. D Executive Agent for Space Commercial Space Launch Cooperation Legislative Proposal Presentation to Space Transportation Operations Working Group Mr Tom Shearer Policy & Strategy Division 10 May 2011 09 -Sep-20 UNCLASSIFIED//FOR OFFICIAL USE ONLY

UNCLASSIFIED//FOR OFFICIAL USE ONLY Basic Problem • National Presidential Security Directives encourage nonfederal investment in development and improvement of space infrastructure • Title 49 (Transportation) finds for strengthening/expanding US space transportation infrastructure with State/private involvement » Enables reimbursable acquisition of unused property/services • Title 15 (Commerce) finds improvements/additions to space infrastructure contribute to robust/cost effective space capability » Allows reimbursable use of government facilities • Title 10 doesn’t address commercial space and otherwise precludes nonfederal investment to supplement appropriations • Bottom Line - National Policy and Law encourage federal/non-federal partnerships but don’t permit cost sharing arrangements 2

UNCLASSIFIED//FOR OFFICIAL USE ONLY Commercial Space Sector Goals vs USC Title 10 Limitations • NSP, dated 28 Jun 10 states “A robust and competitive commercial space sector is vital to continued progress in space. The United States is committed to encouraging and facilitating the growth of a U. S. commercial space sector…” • Currently Title 10 limits Do. D to accepting reimbursement from commercial space companies for excess capacity in the form of launch property, facilities, or direct support services – Do. D is not allowed to accept non-Do. D funding to enable or improve operation of commercial Space launch capabilities, augmentation of Do. D capabilities for commercial purposes, or adding commercial requirements to Do. D contracts to extend/expand services in support of commercial Space launch activities • The proposed FY 12 NDAA addition of Section 2275 “Commercial Space Launch Cooperation” to Title 10 will enable Do. D to accept non-Do. D funds and augmentation for the purposes described above 09 -Sep-20 UNCLASSIFIED//FOR OFFICIAL USE ONLY 3

UNCLASSIFIED//FOR OFFICIAL USE ONLY Gov’t Launch Support Obstacles • Launch base & range capacity is sized and funded to meet only Do. D mission requirements • Why? : Language inherent to Title 10 & Authorization Bills • Purposes language • • What We Augmentation rules Have Today Title 49: Commercial users can What We Need only use Do. D’s “excess capacity” …if there is any • Fix: Change law to allow Gov’t / Industry partnerships Do. D $ for only who can combine Do. D Mission resources, increase capacity and share costs Only excess capacity for Comm’l use Do. D $ for Do. D mission Comm’l $ for comm’l mission + Full capacity for Do. D & Commercial use 4

UNCLASSIFIED//FOR OFFICIAL USE ONLY Why Change the Law? – Advance Administration’s focus on commercialization of space – Advance execution of U. S. Space Statutes & U. S. National Space Policy – Enable significant launch base efficiencies and capabilities for all Range customers, especially commercial industry Titles 42, 49, 15 & 51 require NASA, FAA & Do. C to advocate, facilitate & provide excess Gov’t launch services and range support to the US commercial space industry BUT Do. D owns most of the launch facilities and services Synchronize Commercial Space Statutes Will Enable: § Lower Range costs § Increased Range capacity § More commercial access to Do. D facilities Title 10 does not include direct authority to support commercial space. Authority has been derived from Title 49. This legislation will make direct support to the commercial launch industry part of the Do. D mission. 5

UNCLASSIFIED//FOR OFFICIAL USE ONLY Why Launch From a Do. D Range? Incubator for our nation’s next transportation system § § § § Physics – Performance – Location Safety -- Protect the public from launch hazards Optimize use of unique national assets Avoid duplication of expensive capabilities Access to skilled aerospace workforce Community culture of mission success Directed cost efficiencies for commercial space industry 6

UNCLASSIFIED//FOR OFFICIAL USE ONLY Commercial Space Launch Cooperation (CSLC) Legislative Proposal - Notional Timeline Fully coordinated AF proposal due to SAF/GC 14 Jul 2010 Submissions due to Legislative Review Panel Do. D/OLC 1 Aug (LRP) 9 Nov (actual 11 Aug) Proposal Forwarded to OMB 12 Nov* Aug Oct Window to Submit to OMB Proposals due to OMB 1 Oct Transmit FY 11 NDAA to Congress Mar 2010 Dec 2012 Jt Follow-on Mtg President signs FY 11 NDAA 7 Jan Proposal Forwarded Back to OMB 2 Feb** Send Proposal to Congress for inclusion in FY 12 NDAA) 2011 Cut off for FY 12 legislative cycle 31 Dec Congress Approves FY 12 NDAA (date tbd) Jan Dec Congress Approves FY 11 NDAA 22 Dec (sent to President 29 Dec) Jan Feb Apr Transmit FY 12 OMB approves proposal NDAA to Congress OLC fwds to Congress 15 Apr 16 Mar Jt (USG + Ind) USG Framing Do. D Framing Mtg Mtg Do. D Kick-off Mtg Build Gov’t Instructions / Implementation Guidelines Aug Oct Jun Socialize Concept via Industry Day, COMSTAC, SIBC, etc Non-Federal Entity Submits Wing Review, Coord, Do. D Coord/Approval Execute First Proposal CSLC Proposal # 1 Approval Process complete Under CSLC (2012/01) to 45 SW complete (3 months) Feb Advertise New Law Mar Jun Sep FY 13 UNCLASSIFIED//FOR OFFICIAL USE ONLY *Dec-Feb – Do. D review/implementation of NASA & Treasury comments **Feb-Apr – Do. D review/implementation of Do. T & Do. S comments Oct Dec 7 Best Guess as of May 20117

UNCLASSIFIED//FOR OFFICIAL USE ONLY Close-In Meeting Schedule • Mid June - Do. D Kick-off meeting – HAF, AFSPC, 45 th SW, 30 th SW, Army, Navy, NRO • Late June – Do. D Framing meeting – Air Force, Navy, Army • 3 rd wk July – USG Framing & Initial Drafting meeting – Do. D, Do. T, NASA • Early Aug – USG + Industry Kick-off meeting • Aug-Oct – Joint USG/Industry follow-on meetings 09 -Sep-20 UNCLASSIFIED//FOR OFFICIAL USE ONLY 8

UNCLASSIFIED//FOR OFFICIAL USE ONLY Summary • Need to add commercial space Range support to the Do. D mission to enable substantive improvements in national space launch capability • New challenges mounting: Business as usual can only make marginal improvements • Administration’s focus on commercial spacelift sources • NASA mission change • Commercial spacelift business model finally succeeding • Declining Government resources • Launch Ranges need Do. D legal impediments removed to improve efficiency, increase capacity and share costs 9

UNCLASSIFIED//FOR OFFICIAL USE ONLY Back-Ups 09 -Sep-20 UNCLASSIFIED//FOR OFFICIAL USE ONLY 10

UNCLASSIFIED//FOR OFFICIAL USE ONLY National Commercial Space Mandate 1984 - Commercial Space Launch Act 2000 - Commercial Space Transportation Competitiveness Act 2004 - NSPD-40 2006 - NSPD-49 2010 - National and Commercial Space Act 2010 - National Space Policy § 27 Year Theme: § U. S. Commercialization of Space § Next Step: Add Do. D 11