51 U.S.C. § 20148 — Indemnification; NASA launch services and reentry services

(a) In General. The Administrator^* can write regulations — considering how available and expensive liability insurance is — that let a NASA contract with a launch or reentry "provider" promise that the U.S. government will indemnify, meaning cover, the provider against successful third-party claims for death, injury, or property damage or loss, including reasonable legal costs, arising from launch or reentry services the contract labels as unusually hazardous or nuclear. This coverage only kicks in for the part of total claims that (1) is more than the insurance or financial-responsibility amount required under subsection (c)(3), and (2) does not exceed the cap set in section 50915(a)(1)(B).

(b) Terms of Indemnification. A contract that includes this indemnification must require: (1) telling the government about any claim or lawsuit against the provider for death, injury, or property damage or loss; and (2) letting the government control or help defend that claim or lawsuit, if it chooses, and approve any settlement.

(c) Liability Insurance of the Provider. (1) In general: the provider must buy liability insurance, or otherwise prove it can cover, the maximum probable loss from claims by a third party for death, injury, or property damage or loss from the launch or reentry service, and from the government for damage to government property from that service. (2) Figuring the maximum probable loss: the Administrator must set these maximum-loss figures within 90 days after the provider asks and gives all the needed information, and may later revise a figure if new information justifies it. (3) How much insurance is required: for all claims from one launch or reentry, a provider never has to carry more than the lesser of $500,000,000 for third-party claims, or $100,000,000 for government-property claims; or whatever the most liability insurance available on the world market at a reasonable price is, if that amount is less. (4) Who is covered: the insurance or proof of financial responsibility must protect, to the extent of their potential liability, the government, government personnel, government-related entities, the provider's related entities, and government astronauts.

(d) No Indemnification Without Cross-Waiver. The Administrator cannot indemnify a provider under this section unless there is also a cross-waiver agreement between NASA and the provider, as described in (e).

(e) Cross-Waivers. (1) In general: NASA and the provider each agree, for themselves and their related entities, to be responsible for damage to their own property and injuries or deaths of their own employees or agents arising from the contract's activities, rather than suing each other over it. (2) Limitation: the government's waiver only applies above the insurance or financial-responsibility amount required under (c)(1)(B).

(f) Willful Misconduct. Indemnification under (a) can exclude claims caused by the provider's or its related entities' willful misconduct.

(g) Certification. NASA cannot pay anything under (a) unless the Administrator, or someone the Administrator designates, certifies that the amount is just and reasonable.

(h) Payments. (1) In general: once the Administrator approves, payments under (a) can be made from appropriated funds. (2) Limitation: the Administrator cannot approve payments unless a law appropriating the money, or new legislative authority, allows it. (3) Additional appropriations: if the Administrator asks Congress for more money to make these payments, that request must follow the procedures in section 50915.

(i) Rules of Construction. (1) In general: this section's indemnification authority does not create any new rights for third parties that they would not already have under other law. (2) Other authority: nothing here stops the Administrator from indemnifying a provider or other NASA contractor under a different law, including Public Law 85-804, a separate indemnification law. (3) Anti-Deficiency Act: every obligation under this section depends on money being available, and nothing here lets NASA obligate or pay money in violation of the Anti-Deficiency Act — specific sections of title 31 listed in the law.

(j) Relationship to Other Laws. The Administrator cannot indemnify an activity under this section if that activity needs a license or permit under chapter 509, the commercial space launch law.

(k) Definitions. (1) "Government astronaut" has the meaning given in section 50902. (2) "Launch services" has the meaning given in section 50902. (3) "Provider" means a person who supplies domestic launch or reentry services to the government. (4) "Reentry services" has the meaning given in section 50902. (5) "Related entity" means a contractor or subcontractor. (6) "Third party" means anyone except the U.S. government; government-related entities involved in the launch or reentry service; the provider; the provider's related entities involved in that service; or a government astronaut.