Space Launch Cost Reduction Act of 1998

Summary

Space Launch Cost Reduction Act of 1998 - Establishes a Commercial Space Launch Industry Loan Guarantee program to provide loan guarantees to support the private development of qualified commercial space launch vehicle initiatives. Requires such program to be carried out by the Administrator of the National Aeronautics and Space Administration. Prohibits the program from: (1) providing for loan guarantees pertaining to the construction, reconstruction, or reconditioning of space launch sites; or (2) removing, restricting, or replacing funding provided by the Department of Defense (DOD) to companies participating in the Evolved Expendable Launch Vehicle Program. Makes companies receiving DOD funding for the development of such vehicles ineligible for loan guarantees for the same vehicles. (Sec. 103) Creates a Space Launch Vehicle Loan Guarantee Fund (Fund) to be used by the Administrator as a revolving fund to carry out this Act. Allocates a specified amount to the Fund. (Sec. 104) Authorizes the Administrator to guarantee eligible obligations under this Act. Describes security interests required for the guarantee of obligations. Permits the Administrator to require an obligor to obtain private bond insurance with respect to the Government's risk of default by the obligor. Provides for: (1) a system of risk categories for obligations that categorizes the relative risk of guarantees with respect to specified risk factors; and (2) a subsidy rate for each of the categories equivalent to the cost of obligations in the category. Deems the estimated cost to the Government of a guarantee to be the amount of the guarantee multiplied by the subsidy rate. Authorizes the Administrator to accept on behalf of an applicant a commitment from a non-Federal source to fund credit risk premiums with respect to the loan that is the subject of an application. (Sec. 105) Permits the Administrator to guarantee payment of principal and interest on an obligation for the purpose of financing: (1) for construction, reconstruction, or reconditioning of a space launch vehicle which is designed for commercial use; or (2) the purchase, reconstruction, or reconditioning of space launch vehicles for which obligations were guaranteed under this Act that, under default provisions, are vehicles for which obligations were accelerated and paid, acquired by the Fund, or sold at foreclosure instituted by the Administrator. Sets forth conditions on such obligations and restrictions on guarantees. Prescribes fees for guarantees and for investigation of guarantee applications. (Sec. 106) Sets forth procedures to be followed in cases of default. (Sec. 107) Authorizes the Administrator, if the proceeds of an obligation guaranteed under this Act are to be used to finance the construction, reconstruction, or reconditioning of a space launch vehicle which will serve as security for the Administrator's guarantee, to hold a portion of such proceeds in escrow. Sets forth requirements for disbursements from, and investments of, the escrow fund.

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3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 22 May 1998

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• Introduced in Senate (PDF)

  Introduced in Senate · EN · 22 May 1998

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• Introduced in Senate

  summary · EN · 22 May 1998

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