Sec. 232. Launch liability provisions
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Section 50915(f) of title 51, United States Code, is amended by striking December 31, 2013 and inserting December 31, 2016 . Subchapter III of chapter 201 of title 51, United States Code is amended by inserting after section 20147 the following: Under such regulations in conformity with this section as the Administrator shall prescribe taking into account the availability, cost, and terms of liability insurance, any contract between the Administration and a provider may provide that the United States will indemnify a provider against claims (including reasonable expenses of litigation or settlement) by third parties for death, bodily injury, or loss of or damage to property resulting from activities that the contract defines as unusually hazardous or nuclear in nature, but— only to the extent that such claims are not compensated by liability insurance of the provider; and only to the extent that such claims arise out of the direct performance of the contract.
Indemnification under subsection
(a)may be limited to claims resulting from other than the actual negligence or willful misconduct of the provider. A contract made under subsection
(a)that provides indemnification shall also provide for— notice to the United States of any claim or suit against the provider for death, bodily injury, or loss of or damage to property; and control of or assistance in the defense by the United States, at its election, of that suit or claim. Each provider that is a party to a contract made under subsection
(a)shall have and maintain liability insurance in such amounts as the Administrator shall require to cover liability to third parties and loss of or damage to property. Notwithstanding subsection (a), the Administrator may not indemnify a provider under this section unless there is a cross-waiver between the Administration and the provider as described in subsection (f). The Administrator, on behalf of the United States, and its departments, agencies, and instrumentalities, may reciprocally waive claims with a provider under which each party to the waiver agrees to be responsible, and agrees to ensure that its own related entities are responsible, for damage or loss to its property for which it is responsible, or for losses resulting from any injury or death sustained by its own employees or agents, as a result of activities connected to the contract. No payment may be made under subsection
(a)unless the Administrator or the Administrator's designee certifies that the amount is just and reasonable. Upon the approval by the Administrator, payments under subsection
(a)may be made, at the Administrator's election, either from— funds obligated for the performance of the agreement concerned; funds available for research and development not otherwise obligated; or funds appropriated for such payments. The Administrator may not provide indemnification under this section for an activity that requires a license or permit under chapter 509. The authority to indemnify under this section shall not create any rights in third persons that would not otherwise exist by law. In this section: The term launch services has the meaning given the term in section 50902. The term provider means a person that provides domestic launch services in support of any space activity the Government carries out for the Government. . The table of contents for subchapter III of chapter 201 of title 51, United States Code, is amended by inserting after the item relating to section 20147 the following: 20148. Indemnification; NASA launch services. .