PUBLIC LAW 100-657—NOV. 15, 1988 102 STAT. 3901

availability, on reasonable terms and conditions, of substantially
equivalent launch property or launch services from a domestic
source.".

(b) Section 15(bXD of the Commercial Space Launch Act (49 U.S.C.
App. 2614(bXD is amended by adding at the end the following: "For
purposes of this paragraph, the term 'direct costs' means the actual
costs that can be unambiguously associated with a commercial
launch effort, and would not be borne by the United States Govern-
ment in the absence of a commercial launch effort.".

(c) Section 15 of the Commercial Space Launch Act (49 U.S.C. App.

2614) is amended by adding at the end the following new subsection:
"(d) The head of any Federal agency or department may collect

payment for activities involved in the production of a launch vehicle
or its payload for launch if such activities were agreed to by the
owners or manufacturers of such launch vehicle or payload/'.

SEC. 5. INSURANCE REQUIREMENTS OF LICENSEE.

(a) Section 16 of the Commercial Space Launch Act (49 U.S.C. App.

2615) is amended to read as follows:

"LIABILITY INSURANCE

"Ssc. 16. (a)(lXA) Each license issued or transferred under this Claims.
Act shall require the licensee or transferee—

"(i) to obtain liability insurance; or

"(ii) to demonstrate financial responsibility,

in an amount sufficient to compensate the maximum probable loss
(as determined by the Secretary, after consultation with the
Administrator of the National Aeronautics and Space Administra-
tion, the Secretary of the Air Force, and the heads of other appro-
priate agencies) from claims by a third party for death, bodily
injury, or loss of or damage to property resulting from activities
carried out under the license in connection with any particular
launch. In no event shall a licensee or transferee be required to
obtain insurance or demonstrate financial responsibility under this
subparagraph, with respect to the aggregate of such claims arising
out of any particular launch, in an amount which exceeds
(I) $500,000,000 or (II) the maximum liability insurance available on
the world market at a reasonable cost, if such insurance is less than
the amount in subclause (I).

"(B) Each license issued or transferred under this Act shall
require the licensee or transferee—

"(i) to obtain liability insurance; or

"(ii) to demonstrate financial responsibility,

in an amount sufficient to compensate the maximum probable loss
(as determined by the Secretary, after consultation with the
Administrator of the National Aeronautics and Space Administra-
tion, the Secretary of the Air Force, and the heads of other appro-
priate agencies) from claims against any person by the United
States for loss of or damage to property of the United States
resulting from activities carried out under the license in connection
with any particular launch. In no event shall a licensee or trans-
feree be required to obtain insurance or demonstrate financial
responsibility under this subparagraph, with respect to the aggre-
gate of such claims arising out of any particular launch, in an
amount which exceeds (I) $100,000,000 or (II) the maximum liability