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Friday, March 31, 2000

Gramm stance threatens spaceport
Senator's opposition to key funding bill may send space facilities to Florida
By Tara Copp and Jessica Wehrman
Caller-Times

Gramm

Sen. Phil Gramm's opposition Thursday to legislation deemed vital to building a spaceport could end up sending the project to Florida instead of Texas.
   Steve Wurst, president of Space Access LLC, had previously committed in writing to building the SA-1, a next-generation space shuttle, and its support facilities, in either Kenedy or Brazoria counties.
   On Thursday, Sen. John Breaux, D-La., fought for but failed to attach an amendment offering loan guarantees to the commercial spaceport industry to a bill that would help bring local television service to rural areas.
   Gramm, R-Texas, who led the Senate floor fight for the larger bill, asked that the Breaux amendment not to be introduced, saying it would be irrelevant to the bill.
   As a result of Gramm's action, the amendment could not be introduced.
   Gramm said the proposal was premature and that it "will be looked at." He did not say anything further to indicate his stance on the concept. After the hearing, a Gramm spokeswoman said the senator wants to see more studies on the loan guarantee issue.

Contributed photo

An artist's rendering of the SA-1, the next-generation space shuttle.

   "This was not the place for it. It is not something he'd do without more study," said Gramm spokesman Christi Harlan.
   Gramm's action, and the contrasting support for the loan guarantees from both of Florida's senators, has caused Wurst to hedge on his commitment to Texas.
   "It's obvious we're disappointed," Wurst said Thursday.
   "It's ironic that Sen. Bob Graham (D-Fla.) was one of co-sponsors of the bill and is from a state that may have more to lose than Texas. We have to have the support of the area that it's going to benefit the most. It's crucial to the overall effort."
   Wurst was referring to a February 1999 Breaux bill that also sought government loan guarantees.
   Both of Florida's senators, Graham and Republican Connie Mack, were cosponsors.
   Neither Gramm nor Sen. Kay Bailey Hutchison, R-Texas, were cosponsors.
   Florida also recently finished its full environmental impact study at Homestead Air Force Base, which was originally one of Wurst's top choices.
   Texas hasn't completed a full study for its two candidate sites in Kenedy County and Brazoria County. The study could cost close to $500,000.
   'A bridge too far'
   Calling the amendment "a bridge too far," Gramm argued that it was not relevant to the Breaux bill and that it had not had enough legislative oversight to be attached to a bill that had already wound through a lengthy legislative process.
   "We're already carrying a pretty heavy load on this bill," he said.
   Wurst said he had hoped when Gramm squelched the amendment that he would voice support for its concept, and possibly sign on as a sponsor to the stand-alone bill.
   "What I want him to do is I want him to say he does like this," Wurst said. "Will he agree to sponsor the bill?"
   'Another battle'
   Wurst needs Gramm to get the loan guarantees, regardless of what state he chooses, said Ray Covey, economic and community development project manager for Central Power and Light Co., who has been working to lure the spaceport to Sarita.
   "Without Phil Gramm, he may not even succeed anywhere else because Sen. Gramm is chairman of the banking committee," Covey said. "That's why we are not going to slow down when it comes to encouraging Gramm to do a stand-alone bill."
   Breaux will now try to introduce a free-standing spaceport bill.
   "This is another battle," said Larry Meyers, Corpus Christi's lobbyist and an advocate for the spaceport. "The war's not about to end."
   Key to rural TV access
   Speaking on the floor of the Senate, Breaux said getting satellites into the air is a key part of getting access to local television in rural areas.
   "We can't just look at rural satellites," Breaux said. "Satellites need to be constructed, but we also need to look at the launch vehicles to put these in the sky."
   Currently, commercial satellites are launched from countries including France and China, but not the United States.
   Breaux said his amendment would be vital to sparking a commercial space launch industry within the United States.
   The SA-1, Space Access' next-generation space shuttle, uses a patented engine it invented that allows the craft to take off into and return from space like an airplane. The technology could reduce space payload costs from $10,000 to $1,000 a pound.
   Breaux argued that the Senate Commerce Committee had had hearings on the bill, and that the head of the National Aeronautics and Space Administration had supported Breaux's legislation.
   "The bill itself talks about launching satellites," Breaux said. "If (this amendment) is not relevant, I'm not sure what would be."
   Local officials who have been working on luring the spaceport to South Texas were disappointed by Gramm's stance. "My feeling is that without Gramm backing it, it's not going to happen any time soon," said Tom Rodino, a consultant with Shiner Moseley & Associates who has been working on the Sarita spaceport effort.
   "We have focused an enormous amount of attention on telling people to contact Gramm and express their feelings if they think this is good for South Texas."
   In January, Gramm met with local supporters of the loan guarantee legislation and had given them an ultimatum: Private investors would have to put up to 20 percent of the project's cost up front.
   In return, the federal government would guarantee no more than 70 percent of the loan. Whoever made the loan would be at risk of losing 30 percent of the loan.
   "We're not talking promises, we're not talking giving credit for use in various investments," he said then.
   "We're talking hard cash."
   Sad hopefulness
   The floor fight re-emphasized Gramm's importance in getting the loan guarantee legislation passed.
   Gramm chairs the Senate Banking, Housing and Urban Affairs Committee, and with few exceptions, bills related to loans and banking legislation go through him and his committee on their way to becoming law.
   But Breaux spokeswoman Bette Phelan said her boss won't give up on getting loan guarantees for the commercial space launch industry.
   "The strategy is to go back to the Commerce Committee to urge them to mark it up and move it as a freestanding bill later this year," she said.
   Rep. Solomon Ortiz, D-Corpus Christi, was on a plane headed to the district Thursday night and was unavailable for comment.
   Local officials were frustrated, but remained optimistic.
   "We've looked at every opportunity that's come along," said Dick Messbarger, executive director of the Greater Kingsville Economic Development Council.
   "We've had kind of a strategy that's had part A, B, C, D. We're down to about C now, but we are very optimistic. We just have to find the right vehicle."
   Covey remained hopeful.
   "Wurst is the kind of guy who has hit every milestone he's shot for," Covey said.
   "If it doesn't work in Texas it's going to work somewhere. I don't think our chances are out in Texas. I think Gramm has something in mind. I hope for a stand-alone bill."


Business writer Tara Copp can be reached at 886-4316 or by e-mail at coppt@caller.com. Scripps Howard News Service writer Jessica Wehrman can be reached at wehrmanj@shns.com

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