LAND REMOTE-SENSING COMMERCIALIZATION ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP05T02051R000200370004-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 33
• Document Creation Date: December 22, 2016
• Document Release Date: August 18, 2011
• Sequence Number: 4
• Publication Date: May 17, 1984
• Content Type: REGULATION

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Calendar No. 891
REPORT
98-458
LAND REMOTE-SENSING COMMERCIALIZATION ACT
MAY 17 (legislative day, MAY 14),1984.--Ordered to be printed
Mr. PACKWOOD, from the Committee on Commerce, Science, and
Transportation, submitted the following
REPORT
[To accompany H.A. 5155]
Science, and Transportation, to
The Committee on Commerce,
which was referred the bill (H.R. 5155s at) a and mr otpro-
mote the use of land remote-sensing ellite a, purposes, having considered the same, reports favorably thereon
with an amendment in the nature of a substitute and recommends
that the bill do pass.
PURPOSE of mx Bna.
The purpose of the bill is to provide a framework for a phased,
orderly commercialization of land remote sensing technologies.
commercialization framework includes provisions for appropriate
Government regulation of private land remote sensing, continued
Federal research and development in remote sensing, and contin-
ued Government archiving of land remote sensing data.
BACKGROUND AND NEEDS
The Federal Government's civilian land remote g e satellite
Landsat syste by
Th
e
stem is called Landsat.
ce Adm istration
(NASA), has b
d S
pa
National Aeronautics an
en-
t as an
in operation since 1972. NASA operated
tal statellite system until 1979, when responsibility for system op-
meanic and Atmospheric
eration was transferred to the National
Administration (NOAA). To date, five satellites have been launched
in the Landsat series. The fifth satellite, Landsat 5, was launched
reto function mote sensing satellite scheduled
on March 1, 1994, and is the last Government-owned expected
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 Congress.
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for launch, was launched more than a year ahead of schedule be-
cause of the premature failure of Landsat 4.
Landsat orbits the earth at an altitude of 705 kilometers and
generates worldwide data that can be processed to reveal details of
the earth's surface. The Landsat orbit is a 16-day cycle, meaning
that the satellites pass over a particular point on the earth's sur-
face very 16 days.
All five Landsats have been equipped with Multispectral Scanner
(MSS), which has a spatial resolution of 80 meters and covers four
spectral bands. Landsat 4 and Landsat 5 also carry the more ad-
vanced Thematic Mapper (TM), which has 30 meter spatial resolu-
tion and provides data in seven spectral bands.
Landsat data have been processed into forms useful for many ap-
plications. The data is used to observe renewable resources, includ-
ing crop classification, monitoring, and forecasting, as well as for-
estry management. Nonrenewable resource applications of Landsat
data include oil and mineral exploration and hydrological applica-
tions. The data are also used for land-use planning, cartography,
and environmental observation and monitoring.
The Landsat system was developed by NASA as an experimental
program, and although the program was a technical success, no
long-range plans were made to convert it to more user-sensitive,
operational system. The lack of government commitment to long-
range plans suppressed the Landsat data market. In fact, current
data sales do not come dose to meeting procurement and operation
costs. Nevertheless, despite the lack of Government marketing, by
the late 1970's it had become clear to some observers that land
remote sensing data could eventually have sufficent commercial
value to attract private investment.
The first clear policy statement of Landsat commercialization
was made by the Carter administration in 1979. President Carter
cited commercialization of Landsat as a goal of his administration
and committed the United States to provide continuity of data flow
from the Landsat system at least through the 1980's.
The Reagan administration decided early in its tenure to acceler-
ate the process of transferring Landsat to the private sector. In
1981, President Reagan asked his Cabinet Council on Commerce
and Trade to evaluate the prospects for private remote sensing.
Concurrently, the administration abandoned plans to construct
Landsats 6 and 7 to follow Landsat. 5.
On September 3, 1982, the Department of Commerce issued a Re-
quest for Information (RFI) for comment by prospective private op-
erators of Landsat and the Government's meteorological satellite
(Metsat) systems. The Department received fourteen responses to
the Cabinet Council on Commerce and Trade President that commercialization of subsequent-
ly ly recommended to the e
Landsat and Metsat be pursued.
The President announced his intent to commercialize Landsat
and Metsat on March 8, 1983. The Congress responded by including
a provision in the fiscal year 1984 NASA authorisation (Public law
98-52) stating that the administration could not transfOr LAndARt
or Metsat to the private sector without prim appraval firorn the
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*or ahead of schedule be-
4
de of 705 kilometers and
ncesscd to reveal details of
r a 16day cycle, meaning
point on the earth's sur-
rith Multispectral Scanner
BO meters and covers four
i also carry the more ad-
s 30 meter spatial resolu-
an&
forms useful for many ap-
newable resources, includ-
oaecting, as well as for-
a ons of Landsat
rological applica-
w plannir , cartography,
vASA as an aparimental
a a technical pooess, no
it to more user-sensitive,
gent commltmsnt to long-
~ market. In tact, current
rocurement and operation
overnment marketing, by
p' 'b obsenars that land
a sufficent commercial
sndsat commercialization
in 1979. President Carter
;cal of his administration
ie continuity of data flow
the 1980's.
y in its tenure to acceler-
to the private sector. In
A Council on Commerce
private remote sensing.
Dned plans to construct
)f Commerce issued a Re-
)y prospective private op-
5 meteorological satellite
ed fourteen responses to
re and Trade subsequent-
)mmercialization of both
commercialize Landsat
is responded by including
authorization (Public Law
ild not transfer Landsat
prior approval from the
In May 1983, the administration created a Source Evaluation
Board (SEB) for Civil Space Remote Sensing within the Depart-
ment of Commerce to solicit and evaluate proposals from private
parties interested in acquiring and operating Landsat and Metsat.
The SEB issued a draft.. Request for Proposals (RFP) for industry
comment. The draft RFP pertained to both the Landsat and Metsat
systems.
At the same time, the Commerce Committee and the Senate
unanimously passed a concurrent resolution expressing opposition
to Metsat commercialization. In reviewing the legislation, Commit-
tee members agreed that the national security concerns and inter-
national obligations relating to weather information could not be
satisfied by private Metsat operation. The Committee felt that
these concerns were not as critical with Landsat and that Landsat
commercialization should be given further consideration. The
House passed an identical resolution.
The fiscal year 1984 Appropriations Act for the Department of
Commerce (Public Law 98-166) contained a provision precluding
the use of any funds to pursue Metsat commercialization. The ad-
ministration withdrew the Metsat commercialization proposal upon
the enactment of Public Law 98-166 in November 1983.
On January 3, 1984, the SEB subsequently issued a RFP for the
Landsat system only. The RFP required respondents to bid for de-
velopment of a follow-on system to Landsat, and permitted bids for
the operation or acquisition of the existing system. Seven bids were
received in response to the RFP. By June 1984, the SEB will recom-
mend to the Secretary of Commerce what bid(s), if any, should be
accepted. The Department of Commerce will then seek to contract
for development of a follow-on system and for the operation of
Landsat and marketing of Landsat data.
Pursuant to Public Law 98-52, the Department can neither enter
into a contract to construct further Landsats nor contract for a pri-
vate land remote sensing capability, such as a follow-on system to
Landsat 5, without enabling legislation. The Committee feels
strongly that a continuous U.S. land remote sensing capability can
be provided only by enactment of legislation during this session of
Congress and strongly endorses H.R. 5155, as reported.
The Committee recognizes that private remote sensing ventures
cannot profit until markets for data expand. Further, the Commit-
tee feels that data markets will not expand until the private sector
aggressively markets data products. The Committee concludes,
therefore, that a phased commercialization process, including the
private marketing of data, is needed to transfer Landsat successful-
ly to the private sector.
Any commercialization of space activities raises issues for which
policy must be determined. Issues relating to Landsat commercial-
ization include data continuity, foreign competition, non riauna-
tory access to data, national y, intprnatinnsl pnlicy, appro-
priate regulation of p vate remote sensing activities, determina-
tion' of the long term Federal role in remote sensing research and
development and data archiving.
Having reviewed these issues, the status of the Government's
Landsat system, and the prospects for land remote sensing com-
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 mercialization, the Committee supports enactment of land remote
sensing commercialization legislation.
LEGISLATIVE HISTORY
Senator Gorton, the chairman of the Science, Technology, and
Space Subcommittee, introduced S. 2292 on February 9, 1984. The
bill is cosponsored by Senators Goldwater and Kasten.
Two other bills relating to Landsat have been introduced and re-
ferred to the Committee during the 98th Congress. The bills are S.
1855, introduced by Senator Hollings and cosponsored by Senators
Ford and Riegle, and S. 1861, introduced by Senator Pressler.
The Subcommittee on Science, Technology, and Space held a
hearing on Landsat commercialization on March 22, 1984. Wit-
nesses at the hearing included representatives of the Federal Gov-
ernment, the Office of Technology Assessment, and a diverse group
of private firms and associations interested in land remote sensing.
On April 9, 1984, the House of Representatives passed H.R. 5155,
a bill similar to S. 2292. H.R. 5155 was subsequently referred to the
Committee. On May 8, 1984, the Committee, without objection, or-
dered H.R. 5155 reported with an amendment in the nature of a
substitute. The language of the substitute reported by the Commit-
tee is that of S. 2292 with a number of amendments agreed to by
the Committee.
SUMMARY OF MAJOR PROVISIONS
The bill, as reported, provides for a phased commercialization of
land remote sensing and appropriate Federal regulation, research
and development, and archiving of data.
Title I of the bill contains findings, purposes, and definitions.
Title II represents the first phase of the commercialization proc-
ess. The Secretary of Commerce is directed to contract for private
marketing of data from the Landsat system. The Secretary also
may contract for private operation of the system, but may not
transfer ownership of Landsat to the private sector. Title II is in-
tended to expand markets for land remote sensing data through an
essive private marketing effort.
tie III of the bill provides for a second phase of commercializa-
tion, a 6-year transition to commercial land remote sensing. The
Secretary of Commerce is directed to contract for private develop-
ment, operation, and ownership of a follow-on system to Landsat.
Title III requires that the contract be awarded by means of a com-
petitive process, and establishes specific criteria, not in order of pri-
ority, for the Secretary to consider in evaluating proposals. The
contract may provide for Federal financial support including loans,
loan guarantees, and other creative financing mechanisms to
assure timely provision of the capability. No Federal data pur-
chases will be guaranteed. The premise of Title III is that the pri-
vate sector can develop a system that is less expensive and more
market-driven than a Government system and that such a system
will result in net cost savings to the Government.
Title IV provides a complete framework for licensing of commer-
cial land remote sensing systems, including the follow-on system es-
tablished under title III. The Secretary of Commerce is authorized
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-0
Science, Technology, and
on February 9, 1984. The
and Kasten.
e been introduced and re-
Congress. The bills are S.
I cosponsored by Senators
>y Senator Pressler.
ology, and Space held a
)n March 22, 1984. Wit-
-tives of the Federal Gov-
nent, and a diverse group
d in land remote sensing.
itatives passed H.R. 5155,
3sequently referred to the
tee, without objection, or-
Iment in the nature of a
reported by the Commit-
Lmendments agreed to by
tw commercialization of
e. regulation, research
oses, and definitions.
commercialization proc-
d to contract for private
tem. The Secretary also
ie system, but may not
ate sector. Title II is in-
sensing data through an
phase of commercializa-
uid remote sensing. The
ract for private develop-
w-on system to Landsat.
rded by means of a com-
;teria, not in order of pri-
?aluating proposals. The
support including loans,
iancin mechanisms to
No federal data pur-
Title III is that the pri-
ess expensive and more
and that such a system
iment.
for licensing of commer-
the follow-on system es-
Commerce is authorized
5
to license qualified private entities to operate land remote sensing
license, the licensee must arantee will
dAta &2F 'I wwaEa made availgnIe 14 all nnTpnttqi Mg 11 mato Is
e NASA and the Department o mmerce, r
-_ ects and Agriculture to continue remote sensing research and develop-
ment programs. Other appropriate Federal agencies also are en-
couraged to conduct research and development in remote sensing
The provisions of title V are intended to provide for continued U.S.
worldwide leadership in remote sensing technology and applica-
tions.
Title VI contains general provisions. The Secretary of Commerce
is directed to maintain and upgrade an archive of land remote
sensing data and the Federal Communications Commission (FCC) is
authorized to allocate radio frequencies to operators of remote sens-
ing systems.
ESTIMATED COSTS
In accordance with paragraph 11(a) of the rule XXVI of the
Standing Rules of the Senate and section 403 of the Congressional
Budget Act of 1974, the Committee provides the following cost esti-
mate, prepared by the Congressional Budget Office:
U.S. CONGRESS,
CONGRESSIONAL BuDGrr OIj+TC$,
Washington, D.C., May 15, 1984.
Hon. BOB PACKWOOD,
Chairman, Committee on Commerce, Science and Transportation,
U.S. Senate, Dirksen Senate Office Building, Washington, D.C.
DEAR MR. CHAIRMAN: The Congressional Budget Office has re-
viewed H.R. 5155, the Land Remote-Sensing Commercialization Act
of 1984, as ordered reported by the Senate Committee on Com-
merce, Science and Transportation, May 8, 1984. This letter super-
sedes CBO's May 10 estimate for this bill.
H.R. 5155 provides for the phased transfer of the federal govern-
ment's civil land remote-sensing activities to the private sector
while continuing to oversee their operation in order to preserve na-
tional security and certain other international interests of the
United States. Transfer to a private party could relieve the federal
government of both capital and operating costs associated with the
Landsat system. On the other hand, the costs to federal agencies of
acquiring remote-sensing data may be expected to increase upon
privatization of land remote-sensing activities, and the transfer of
such activities may involve a subsidy to the private sector party se-
lected to provide remote-sensing capability. The net result could be
either a savings or a cost to the federal government-but the conse-
quences cannot be fully assessed until such time as a contractor
has been selected and contract terms and conditions have been de-
termined.
Titles II and III provide the mechanisms for transfer of the Land-
sat system to the private sector. Title II requires the Secretary of
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Commerce (subject to available appropriations) to enter into a con-
tract with a private part ? to market the data generated by the ex-
isting Landsat system. The sale of the data is subject to certian re-
strictions and requirements, and the federal government retains
title to all data generated by the system. The contract is subject to
the requirement that it be likely to result in cost savings to the
federal government, as determined by the Secretary. If no propos-
als are found acceptable by the Secretary, he is required to contin-
ue operating the system and to market Landsat data.
Title III requires the Secretary of Commerce (subject to available
appropriations) to contract with a private party to assume the ca-
pability of generating remote-sensing data of a specified minimum
volume and quality and to market such data for six years. The con-
tract may provide for indirect and direct financial support by the
federal government for a portion of the capital costs of providing
remote-sensing capability and for other financial considerations.
The contract may not provide for any guarantee of federal pur-
chases and may include a rebate of some percentage of sales to fed-
eral agencies. If no bid is found to be acceptable, the Secretary of
Commerce is authorized to ensure continued remote-sensing data
availability by procuring and operating the necessary systems, to
the extent provided in advance by appropriation acts. Section 307
authorizes the appropriation of $60 million for fiscal year 1985 for
the purposes of carrying out this title. How much of this amount is
spent, and when the outlays occur, depend on the magnitude and
type of financial support chosen. There is presently no clear basis
for projecting such outlays.
Title IV establishes the authority of the Secretary of Commerce
to license operators of land remote-sensing systems. Title V directs
the Administrator of the National Aeronautics and Space Adminis-
tration and other federal agencies to continue and enhance remote-
sensing research and development programs. Finally, Title VI pro-
vides for nondiscriminatory access to unenhanced land remote-
sensing data and requires the Secretary of Commerce to continue
to archive land remote-sensing data.
Because the terms and conditions of the contract(s) to be entered
into by the government, including the dollar amount of any subsi-
dy to be provided to the contractor, have not yet been determined,
the potential budget impact of H.R. 5155 cannot be estimated with
any precison. The baseline for any such estimate is the continued
operation by the federal government of the civil remote-sensing
system. This could cost the federal government as much as $900
-million between 1985 and 1989, assuming the need to purchase,
launch and operate two additional Landsat D-type units over the
period. Sale of data to nonfederal purchasers would partially offset
these outlays. Currently, such sales are very small, accounting for
only 25 percent of all Landsat data distribution in fiscal year 1983.
The cost of commercialization to the federal government is large-
ly dependent upon the subsidy payments under Section 305 of the
bill. The bill relies upon a competitive bidding process to produce
the lowest possible subsidy. Although there is no provision in the
bill that would require the Secretary of Commerce to accept the bid
with the lowest overall price, Section 303 would require any pro-
posed agreement to be reviewed by the Congress. While bids have
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 tions) to enter into a con-
data generated by the ex-
ta is subject to certian re-
leral government retains
The contract is subject to
ilt in cost savings to the
e Secretary. If no propos-
e he is required to contin-
ndsat data.
oerce (subject to available
party to assume the ca-
a of a specified minimum
its. for six years. The con-
financial support by the
capital costs of providing
financial considerations.
guarantee of federal pur-
percentage of sales to fed-
Xptable, the Secretary of
cued remote-sensing data
.he necessary systems, to
priation acts. Section 307
n for fiscal year 1985 for
w much of this amount is
id on the magnitude and
presently no clear basis
ecretary of Commerce
..yytems. Title V directs
utics and Space Adminis-
nue and enhance remote-
ms. Finally, Title VI pro-
nenhanced land remote-
of Commerce to continue
r contract(s) to be entered
liar amount of any subsi-
not yet been determined,
cannot be estimated with
stimate is the continued
the civil remote-sensing
-nment as much as $900
g the need to purchase,
at D-type units over the
ers would partially offset
ery small, accounting for
ution in fiscal year 1983.
eral government is large-
under Section 305 of the
dding process to produce
re is no provision in the
mmerce to accept the bid
would require any pro-
ongress. While bids have
been received and reviewed by the Department of Commerce's
Source Evaluation Board (SEB), these documents are proprietary
and are not available for our inspection.
Conceivably, a private party might be able to take over and de-
velop the land remote-sensing capability required by H.R. 5155 for
less than it would cost the federal government to continue the
Landsat program, if a "no-frills" system were developed. The De-
partment of Commerce has indicated that such savings are possible
and, in fact, that no contract will be awarded unless the projected
cost to the government is substantially less than the estimated cost
of continued federal operation. At least one participant in the
SEB's RFP process has indicated that it would be able to provide
Landsat-type capability meeting all government requirements for
approximately one-tenth of the cost of the current Landsat system.
If such a proposal were accepted, little or no federal subsidy would
be required and the total cost to the federal government would be
reduced to the cost of purchasing remote-sensing data required by
federal agencies, as well as some minimal expense for continued li-
censing and archiving activites. The net costs to the government
under this arrangement would be less than under current law, al-
though the savings cannot be estimated at this time.
On the other hand, it is possible that the subsidy cost will exceed
the cost of continued federal Landsat operation, because there is no
stated requirement that a subsidy greater than the cost of federal
operation be deemed unacceptable. The total cost to the govern-
ment would also include the purchase of any remote-sensing data
required by federal agencies, although this cost might be partially
offset by any rebate on federal purchases. Thus, the federal govern-
ment's subsidy and data costs could exceed the cost of continued
federal operation, even before indirect impacts from possible tax
credits to the contractor are considered.
In addition to the federal budget impact, it is possible that some
additional costs would be incurred by state and local governments
if the price of land remote-sensing data rises after the commercial-
ization of Landsat. These governments are relatively small users of
remote-sensing data, and their demand for Landsat products has
historically been quite sensitive to price increases. Moreover, provi-
sions in Section 603 of the bill that prohibit reproduction by any
purchaser of remote-sensing data could increase costs for these
users, which have traditionally relied upon sharing satellite data
among themselves to reduce costs.
If you wish further details on this estimate, we will be pleased to
provide them.
Sincerely,
RUDOLPH G. PENNER, Director.
REGULATORY IMPACT STATEMENT
In accordance with paragraph 11(b) of rule XXVI of the Standing
Rules of the Senate, the Committee provides the following evalua-
tion of the regulatory impact of the legislation:
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REGULATORY IMPACT
The legislation requires the Secretary of Commerce to create a
new regulatory mechanism for the licensing and regulation of com-
mercial land remote sensing systems. The Department of Com-
merce will assume theese responsibilities in lieu of its existing
management of the Federal land remote sensing system. Therefore,
the overall level of responsibility should not be greatly altered actually may be reduced with the commercialization of land remote
sensing.
The legislation also requires the FCC to allocate radio frequen-
cies and the Secretary of Commerce to consult with other Federal
agencies, in particular the Departments of State and Defense, to
become aware of the effect of proposed land remote sensing sys-
tems on U.S. international and national security policies. These are
functions that are already performed by each of these respective
agencies; any additional impact, therefore, should be minimal.
The Committee notes that the proposed legislation will affect a
very small number of firms and individuals in the short term be-
cause the commercial feasibility of land remote sensing systems
has yet to be proven.
ECONOMIC IMPACT
The legislation facilitates the phased commercialization of the
-
exist' Federal into a com
uig Federal land remote sensing system (Lan
mercl'al land remote sensing enterprise. Enactment of this legisla-
tion should result in a net cost savings to the Federal Government
even though, in the early years of the commercialization process a
federally subsidy will be required.
The legislation also lays the foundation for the emergence of a
"new" land remote sensing industry in the United States which
should create new job opportunities and provide additional tax rev-
enues to the U.S. Treasury.
PERSONAL PRIVACY
Dohcant for l i e n ? pursuant to title N of the Ieg?smmx.iu
Lt. a
s
MIME
national
This
54__9:~: ., ..r r Qinina the license_ Provision is i
nonr
new remote sensing in
cable antitrust laws.
us nes wi ' the parameters of appii-
PAPERWORK REQUIREMENTS
The legislation could require additional paperwork because it in-
cludes two different RFP to contract with the Federal Govertn-
ment, a reporting requirement on the commercialization process, li-
censing and regulatory requirements, consultation between Federal
aencies, radio frequency allocations by the FCC, and the archiving
ogf data. With the exception of the RFPs and the reporting
however, all of the activities required by this legislation are
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to ensure operation of these
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of Commerce to create a
g and regulation of com-
ie Department of Com-
in lieu of its existing
,nsing system. Therefore,
~t be greatly altered and
ialization of land remote
allocate radio frequen-
isult with other Federal
of State and Defense, to
snd remote sensing sys-
:urity policies. These are
each of these respective
should be minimal.
legislation will affect a
is in the short term be-
remote sensing systems
)mmercialization of the
m (Landsat) into a com-
iactment of this legisla-
he Federal Government
mercialization process a
i the emergence of a
ie United States which
wide additional tax rev-
Ile IV of the legislation
?rce the authority to in-
iny land remote sensing
use. This provision is in-
mce with existing U.S.
s and the principle of
.sure operation of these
he parameters of appli-
aperwork because it in-
i the Federal Govertn-
ercialization process, li-
!tation between Federal
FCC, and the archiving
I the reportin require-
1 by this legislation are
already carried out by the concerned Federal agencies. Also, the
paperwork burden on the applicant for a commercial land remote
sensing license compared to the current licensing requirements of
other satellite systems. Finally, and most importantly, the RFP
process required by the legislation have alrady been initiated by
the Department of Commerce. Therefore, the most onerous paper-
work requirement resulting from the legislation may not be nece-
sary if the final contractual award made by the Department of
Commerce complies with the legislation.
SECTION-BY-SECTION ANALYSIS
TITLE I: DECLARATION OF FINDINGS AND PURPOSES
Section 101.-Findings
Section 101 contains the findings governing the framework for
commercialization of land remote sensing provided by the bill.
Some of the more important findings in the view of the Committee
are:
1. The Landsat system has established the United States as
the world leader in land remote sensing technology;
2. Continuous collection of land remote sensing data from
satellites is of major benefit in managing resources;
3. Land remote sensing involves national security concerns
and international obligations;
4. The establishment of private land remote sensing ventures
is in the national interest;
5. Private industry is best suited to develop markets for
remote sensing data;
6. Cooperation between the Federal Government and private
industry is necessary to manage Landsat while honoring inter-
national and national security responsibilities and broadening
data markets enough to support private remote sensing ven-
tures; and
7. Cooperation should be structured to assure data continuity
while minimizing Federal expense and regulation.
The Committee believes that the commercialization framework
provided by the bill is consistent with these findings. Title 11 and
title III provide for cooperation between the Federal Government
and private industry aimed at managing Landsat, developing data
markets, and minimizing Federal expense. Title IV creates a
framework for the establishment of private ventures and includes
provision to protect national security and international interests.
Section 102.-Purpose
Section 102 contains purposes of the bill. The purposes are:
1. To provide a framework for a phased, orderly commercial-
ization of land remote sensing technologies;
2. To assure continuous availability of land remote sensing
data;
3. To reaffirm the U.S. policy of making all land remote
sensing data available to all potential users on a nondiscrim-
inatory basis;
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4. To establish mechanisms for regulation of private land
remote sensing systems, with particular attention to relevant
national security and international concerns;
To preserve the United States' worldwide leadership in
remote sensing technology;
6. To minimize Federal expense in providing for a continu-
ous U.S. land remote sensing capability.
Section 108.-Definitions
Section 103 contains definitions of terms used in the bill. The
Committee feels that some of the definitions will be vitally impor-
tant in the implementation of the bill, and the Committee wishes
to clarify the intent of some of the definitions.
Paragraph (1) defines the "Landsat system" as Landsats 4 and 5
and related ground equipment, systems, and facilities. This defini-
tion is relevant in title II, in which the Secretary of Commerce is
directed to contract for private marketing of data from the Landsat
system. The Committee excludes Landsat 1, 2, and 3 from the defi-
nition because most of the commercially valuable data from these
satellites are already in the public domain, and are not likely to
contribute to the development of data markets, which is the objec-
tive of title II.
Paragraph (2) defines "nondiscriminatory basis" as meaning
"without preference, bias, or any arrangement that favors any pur-
chaser or class of purchasers over another." Applications of this
definition are contained in subparagraphs (A) through (C).
Subparagraph (A) states that data products must be made avail-
able to all potential buyers at standard, published prices. The Com-
mittee intends for this to mean that data will be available to each
and every potential buyer, rather than merely to the fist or high-
est bidder.
Subparagraph (B) requires that all purchasers are given the
same opportunities for access to data, such as timeliness of avail-
ability and terms of delivery. The Committee wishes to permit op-
erators to offer various terms of access at various prices, provided
that all terms of access are published and uniformly available.
Subparagraph (C) permits "special arrangements, such as volume
discounts, gathering of data with certain characteristics requested
by a purchaser, and maintenance of secrecy regarding any such ar-
rangements." The availability and prices of such services must be
published and uniformly available to all purchasers.
The Committee feels that allowing these arrangements enhances
the commercial prospects for land remote sensing. Further, the
Committee believes that prohibiting exclusive access to data by any
purchaser will preserve the worldwide acceptance of land remote
sensing. The Committee's rationale for this paragraph is also dis-
Paragraph (3) defines "Secretary" as the Secretary of Commerc .
aaragraph (4) defines the term "unenhanced d '. The Commit-
tee intends for the term "jinenhAnMr-M-Ita" to mean data that
t a are not digital.
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40
elation of private land
ar attention to relevant
icerns;
worldwide leadership in
providing for a continu-
-is used in the bill. The
~ns will be vitally impor-
d the Committee wishes
)ns.
?m" as Landsats 4 and 5
nd facilities. This defini-
ecretary of Commerce is
of data from the Landsat
1, 2, and 3 from the defi-
valuable data from these
in, and are not likely to
rkets, which is the objec-
~ory basis" as meaning
nent that favors any pur-
er." Applications of this
(A) through (C).
ucts must be made avail-
.bl-shed prices. The Corr-
be available to each
ereiy to the fir at or high-
urchasers are given the
ch as timeliness of avail-
ttee wishes to permit op-
t various prices, provided
uniformly available.
igements, such as volume
characteristics requested
cy regarding any such ar-
of such services must be
urchasers.
e arrangements enhances
)te sensing. Further, the
sive access to data by any
:.ceptance of land remote
zis paragraph is also dis-
e Secretary of Commerce.