Peterson AFB – December 16, 1998 – The Air Force is in the middle

of a fundamental shift in the way it views its role in the nation's space

business, said the acting Secretary of the Air Force after attending the

Commercial Space Industry Leaders' conference here Dec. 10.

"We are in the transitioning out of being a consumer of launch vehicles,"

said Whit Peters, acting Secretary of the Air Force. "In fact, the very theory behind EELV (Evolved Expendable Launch Vehicle) is to buy launch services, rather than buy launch vehicles.

"Lockheed-Martin, Boeing and the Air Force have each put a billion dollars

into EELV. It is flexible and will meet our launch needs."

Peters said space is an industry that is taking off. Then, as the economic

benefits of higher production kick in, it will save the Air Force money. "The better Lockheed-Martin and Boeing do commercially, the better off we are because it will reduce our cost of getting to space."

In 1999 and beyond, the Air Force's Eastern Range at Patrick AFB, Fla., and the Western Range at Vandenberg AFB, Calif., will see more commercial

launches than military ones.

"Realistically they are both national ranges now," said Peters. "We are in

an era where the ranges serve a very large commercial base."

The key issue, Peters said, is to make sure the Air Force has a robust space force during and after this shift. Air Force Space Command's people will play a critical role in ensuring that happens.

"Whatever we do, first we need to make an assessment of what the space

career field is, how many people we need, and make sure we retain the

assets we need to have a national defense space team," said Peters. "We

are going to do this very carefully, very cautiously, to make sure that we

don't screw up the space career field."

The challenge is "trying to sort out how to take what we have, keep the

space career field intact, and transition from a 'consumer' to a 'provider' of services," he said.

Currently, both launch ranges provide critical infrastructure, safety and

telemetry for both military and commercial launches.

"We need to make sure those portions of the space business that can be

commercialized are commercialized. We also need to look at shifting the

safety and regulatory jurisdiction more to the hands of the Federal

Aviation Administration where it is vested by law."

State governments are also playing a larger and more important role in

space.

"California and Florida are very interested in providing the same kinds

of assistance for space launch that they do for many of their other

industries," said Peters. This assistance often includes tax incentives

and infrastructure support. Alaska, Virginia and New Mexico also have a

strong interest in space, he said.

"These states see commercial launch and commercial space activities

as a major economic industry. They are very interested in having a role

and we are very interested in giving them a role."

From new roads to providing water, gas and sewer we are very actively

involved in shifting from Air Force-owned assets to using state, or

public service commission services. This is not just happening in Air

Force Space Command, but across the Air Force."

Air Force Space Command

Federal Aviation Administration

Patrick Air Force Base, Fla.

Peterson Air Force Base, Colo.