House Boosts Space Commerce

Another bright spot for the recovering U.S. economy comes from beyond Earth.

The U.S. House of Representatives has unanimously passed the American Space Commerce Free Enterprise Act (H.R. 2809), introduced last June. According to the Committee on Science, Space and Technology, it “simplifies and strengthens the space-based remote sensing regulatory system, enhances U.S. compliance with international obligations, improves national security and removes regulatory barriers facing new and innovative space operators. The bill was sponsored by Committee Chairman Lamar Smith (R-Texas).

Rep. Smith stated that “American innovators, driven by ingenuity, competitive spirit and bold vision, are the future of space exploration. The American Space Commerce Free Enterprise Act ensures they continue to innovate right here in the United States. This transformative and ground-shaking legislation facilitates commercial lift-off and declares that America is fully ‘open for business’ in space. I appreciate the bipartisan support for this bill from my colleagues.”

Space Subcommittee Chairman Brian Babin (R-Texas) added his support, emphasizing that “By passing this innovative legislation, we are signaling loud and clear that America is open for business in space. The American Space Commerce Free Enterprise Act is a common-sense bipartisan bill that streamlines the regulatory process, limits government intrusion, promotes American innovation and investment, protects national security and satisfies our Outer Space Treaty obligations. I am proud to be a co-author on this bill with Chairman Smith and recently-confirmed NASA Administrator Bridenstine.”

The measure, formally titled “The American Space Commerce Free Enterprise Act of 2017” is designed to:

Enact a presumption of approval for all private sector space activities, including remote sensing
Create a one-stop shop for U.S. authorization and supervision of nongovernmental space activities in the Commerce Secretary’s Office of Space Commerce
Establish a transparent self-certification authorization process for commercial on-orbit space operations
Provide federal review to assure nongovernmental space activities conform to the United States’ Outer Space Treaty obligations
Address concerns that private space operations may pose a safety risk to existing government space systems
Reform the space-based remote sensing licensing process to support innovation and entrepreneurship
Hold the federal government accountable by requiring evidence-based justification for licensing decisions
Strictly enforce deadlines with approval by default to ensure the government makes timely decisions
Preserve the ability to condition remote sensing operations to protect national security
Enhance national security by ensuring insight into operations and capabilities and by creating a competitive environment that discourages offshoring

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The measure won praise from the U.S. Commerce Department A published statement noted that “Space activities are already a $336 billion industry and heading toward a trillion dollars of annual revenue. More than 70 countries launched into space last year, and the Trump Administration has recognized the importance of facilitating a pro-business environment that cements America’s leadership in space. By designating the Department of Commerce the “one-stop shop” to facilitate commercial space activities, the President’s Space Council has initiated a constructive regulatory environment that not only streamlines the problems facing the space community today – but establishes the framework to solve the problems of tomorrow. I applaud the House of Representatives for passing legislation that expands upon the Administration’s approach to promote jobs, innovation, and economic growth in the commercial space business, and I look forward to continuing to work with the National Space Council, the Congress and industry to ensure American leadership in space commerce.”

Science Direct supported the legislative concept when it was first introduced last year, noting “Even though the bill has not been enacted into law yet, its relevance should not be underestimated. Indeed, it not only represents the latest step in regulating the nascent space mining industry, but it also contains several provisions that, to a large extent, challenges the traditional understanding of basic international space law rules. For example, the draft bill refers to the right of US entities to engage in space undertaking without conditions or limitations, argues that not all the obligations of the Outer Space Treaty are imputable to those entities and claims that outer space is not a global commons.”

An artist image of the Boeing Starliner spacecraft docking to the International Space Station. Image credit: Boeing

Quick Analysis

Russia Expanding Aggression

President Putin is using more than one pathway to enter Europe and undermine the West. While most of the world watches the conflict he initiated in Ukraine, the Russian government is actively pursuing a second front in a little noticed campaign in Cyprus. Although the corrupt Cypriot government ended its issuance of “golden passports” in 2020, Russian intelligence is functioning quietly there to transform this EU country into a Russian beachhead of illicit economic activity aimed at penetrating the capitalist West, according to Paul Goble of the Jamestown Foundation. Cyprus is not a member of the North Atlantic Treaty Organization (NATO) nor does it receive as much attention as those countries who are member states. That adds to its allure as a prime location for Russia to attempt to gain a European foothold. Last week a NATO report, cited in the European Daily Monitor, noted that Russian intelligence agents have been plotting to destroy European infrastructure across the continent to disrupt states supporting Ukraine. It further suggests that Putin’s immediate goal is to lay the framework for a future move against the security organization’s members. Hungary, in particular, is another country garnering Moscow’s attention as it opposes the Western response to Russian aggression. Russia is focusing its intelligence efforts on other European, non-NATO member countries in addition to Cyprus, including Austria, Malta, and Ireland. The NATO report suggests that Moscow has had success in disseminating the Russian political narrative in these states to advance its campaign against the West. The island of Cyprus is proving to be a good target for Moscow as it is an ethnically divided island that is part of the EU since 2004. Northern Cyprus, officially called the Turkish Republic of Northern Cyprus (TRNC), is a de facto state that is only recognized by Turkey. The division precludes it from joining NATO. As Goble suggests, “it offers Russia troubled waters in which to fish.” Over the last 20 years, he points out, Cyprus’ challenges have opened it to a massive influx of Russian citizens, who now comprise approximately 10 percent of the island state’s population. Over 2,900 residents are Russians who entered until the “golden passport” program that allowed wealthy or well-connected Russians to move to Cyprus. It also provided them with documentation to travel freely throughout Europe! Although less visible on the world’s radar than the war in Ukraine, Moscow is also being helped by Cyprus’ banks opposition to seizing Russian assets and its support in evading Western sanctions. Russia has placed tens of billions of US Dollars there for money laundering. It has been more than two years since a single Russian “diplomat” has been deported and, in fact, the Embassy has grown to over 300 staffers on this tiny island state of only 1.2 million people. The Russian embassy in Nicosia has advanced communications antennae on its roof and opened a consulate on the northern end of the island. Moscow’s Ambassador, Mura Zyazikov, is a lieutenant general in the FSB with no diplomatic experience. The FSB, SVR (Russia’s Foreign Intelligence Service), and GRU are actively using the island as a base of operations against NATO Member states, Israel, and other Western allies. Moscow backs pro-Russian political parties who in turn influence Cypriot decisions on education, language, and other issues. “Dmitry Khmelnitsky of the Dossier Center says that its findings should be of concern not only to Cyprus but to the West as a whole. Those who ignore what Moscow is doing because Cyprus does not follow the EU sanctions regime are missing something critical,” says Goble. “Cyprus does not seek to get rid of Russian agents and does not interfere with their work,” Khmelnitsky concludes, “despite the fact that what the Kremlin is doing is so clearly visible.” This has an impact not only on the small island but on the EU, NATO, and the West in general. Earlier this year the Moscow Times reported that when the FBI became more interested in Russian business and oligarchs in Cyprus, at least 10 of the major Russian businesses operating there left. Despite the government of Cyprus’ vow to implement plans for new sanctions against Russia, it continues to ignore Putin’s atrocities in Ukraine and to shield the wealth of the 50,000 wealthy Russian citizens and oligarchs residing there. Daria Novak served in the U.S. State Dept. Illustration: Pixabay