Congress

House passes launch indemnification extension

A little-known provision in federal law provides indemnification for commercial launch providers in the unlikely event that a launch accident caused third-party damaged above the maximum probable loss that providers ave to insure against. That indemnification, though, needs to be renewed by Congress on a regular basis or it will sunset: currently, the indemnification provision would expire at the end of this year if Congress took no action.

Congress, though, is taking action. The House passed by voice vote Tuesday HR 3819, a bill introduced last week by Congressman Bart Gordon that would extend the provision for three more years, with no other changes. “The commercial space transportation liability and insurance regime has worked,” Gordon said in a statement about its passage.

The bill is a mixed bag for the commercial space launch industry. While they’re pleased to see the indemnification regime renewed, they probably would like a longer term than three years—in the past industry representatives have expressed a desire for a permanent extension. However, unlike the 2004 legislation that previously extended the regime, there’s no requirement for a study to determine if the indemnification regime is needed at all.

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