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This bill offers direction for how the commercial space industry should be regulated. Keeping in mind that the industry is growing, this bill covers the role of the Federal Aviation Administration (FAA) while extending the indemnification (i.e. compensation for loss or harm) period for operators, and clarifies the licensing process for space vehicles.

The FAA’s \"learning period\" for regulating commercial spaceflight would be extended through 2023. This would allow more private spaceflights to happen and more data to be gathered to use in crafting future safety regulations.

A report on the progress of the commercial space industry on developing interim consensus standards and best practices would be developed by regulators and an industry-related advisory committee to be turned into Congress. The report would include standards that have been accepted by the industry at large and areas that could soon become consensus standards.

The indemnification period for commercial spaceflight operators would also be extended through 2023, which protects operators from losses in the event of an accident. The FAA’s mechanism for calculating the maximum possible loss associated with a launch would be updated. Indemnification has never been used, and is subject to future appropriations.

A technical issue in the launch licensing process would be fixed, allowing individual space vehicles to be used for testing under experimental permits while other individual vehicles are used commercially. Current law requires all vehicles of the same design to be used for only one purpose -- whether it is commercially or for testing.

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Shaping Regulations For The Private Sector Space Industry