Saving commercial launch indemnification

One of the concerns about the difficulties recently encountered with HR 3752 (see the previous post as well as an article I wrote for The Space Review for more details) is that the legislation also includes an extension of the current launch indemnification regime that is of great interest to existing launch providers. This system requires launch operators to purchase insurance up to a government-determined maximum probable loss to third parties; the government then provides coverage for catastrophic losses up to $1.5 billion for launch. That indemnification regime is scheduled to expire at the end of this calendar year, and the launch industry has been lobbying for an extension.

To make sure indemnification does get extended, Rep. Sherwood Boehlert (R-NY) introduced late Thursday HR 5245, whose sole purpose is to approve an extension. The bill is something of a compromise between the language in HR 3752 and S 1260, the former Senate companion to HR 3752. HR 5245 would extend indemnification by five years, the same as S 1260 (HR 3752 offered only a three-year extension), but the bill does include a provision from HR 3752 calling for a study to see if the indemnification system could be phased out. (HR 3752 identified a specific organization, the National Academy of Public Administration, to carry out the study, while 5245 only mentions “a nonprofit entity”.) HR 5245 passed in the House by unanimous consent late Friday night and awaits action by the Senate when it reconvenes in mid-November.