This Act may be cited as the “Alleviating Spaceport Traffic by Rewarding Operators Act of 2023”.

(a) In general.—The Secretary may establish a pilot program to issue grants to operators of launch and reentry sites for projects to construct, repair, maintain, or improve transportation infrastructure and facilities at such sites.

(b) Pilot program qualifications.—The Secretary may enter into agreements under this section to issue a grant to an operator only if the operator—

(1) has submitted an application to the Secretary in such form, at such time, and containing such information as prescribed by the Secretary;

(2) demonstrates to the Secretary’s satisfaction that the project for which the application has been submitted is for a permitted use under subsection (c); and

(3) agrees to maintain such records relating to the grant as the Secretary may require and to make such records available to the Secretary or the Comptroller General of the United States upon request.

(c) Permitted use of pilot program grants.—An operator may use a grant provided under this section for a project to construct, repair, maintain, or improve infrastructure and facilities that—

(1) are located at, or adjacent to, a launch or reentry site;

(2) directly enable or support transportation safety or covered transportation activities; and

(3) shall be made generally available subject to reasonable commercial and other terms as appropriate.

(d) Pilot program grants.—

(1) GRANT FORMULA.—Subject to the availability of appropriations, at the beginning of each fiscal year after fiscal year 2024, the Secretary may issue to an operator that qualifies for the pilot program under subsection (b) a grant in an amount equal to the sum of—

(A) $250,000 for each launch or reentry operation under a license described in section 50905 of title 51, United States Code, conducted from the applicable launch or reentry site or at any adjacent Federal launch range in the previous fiscal year; and

(B) $100,000 for each launch or reentry operation conducted under a permit (as defined in section 50902 of title 51, United States Code) from the applicable launch or reentry site or at any adjacent Federal launch range in the previous fiscal year.

(2) MAXIMUM GRANT.—Except as provided in subsection (e)(5), a grant issued to an operator under this subsection shall not exceed $2,500,000 for a fiscal year.

(3) ADJACENCY.—

(A) IN GENERAL.—In issuing a grant to an operator under paragraph (1), the Secretary shall determine whether a launch or reentry site is adjacent to a Federal launch range.

(B) LIMITATION.—In the event that more than 1 operator adjacent to a Federal launch range seeks funding under paragraph (1), the Secretary shall determine which operator receives the grant based on criteria set forth in section 50901(b)(4) of title 51, United States Code.

(C) MULTIPLE LAUNCH OR REENTRY SITES OPERATED BY 1 OPERATOR.—If an operator holds a license to operate more than 1 launch site or more than 1 reentry site that are adjacent to a Federal launch range, the Secretary shall consider such launch or reentry sites as 1 launch or reentry site for purposes of subparagraphs (A) and (B) of paragraph (1).

(e) Supplemental grants in support of State, local, or private matching.—

(1) IN GENERAL.—The Secretary may issue a supplemental grant to an operator, subject to the requirements of this subsection.

(2) DOLLAR-FOR-DOLLAR MATCHING.—If a qualified entity provides an operator an amount equal to or greater than the amount of a grant provided in a fiscal year under subsection (d) (for the explicit purpose of matching such grant), the Secretary may issue a supplemental grant to the operator that is equal to 25 percent of such grant in the following fiscal year.

(3) ADDITIONAL NON-FEDERAL MATCHING.—If a qualified entity provides an operator an amount equal to or greater than 2 times the amount of a grant provided in a fiscal year to the operator under subsection (d) (for the explicit purpose of matching such grant), the Secretary may issue a supplemental grant to the operator that is equal to 50 percent of such grant in the following fiscal year.

(4) SUPPLEMENTAL GRANT LIMITATIONS.—

(A) MATCH TIMING.—The Secretary may issue a supplemental grant under paragraph (2) or (3) only if an amount provided by a qualified entity is provided to the operator in the same fiscal year as the grant issued under subsection (d).

(B) NON-DUPLICATION OF MATCHING GRANTS.—If the Secretary issues a supplemental grant to the operator of a launch site under paragraph (3), the Secretary may not issue a supplemental grant under paragraph (2) to the same operator in the same fiscal year.

(5) NON-APPLICATION OF GRANT CEILING.—The limitation on a grant amount under subsection (d)(2) shall not apply to supplemental grants issued under this subsection.

(f) Funding.—

(1) PILOT PROGRAM GRANT FUNDS.—The grants issued under this section shall be issued from funds made available out of amounts available under section 106(k) of title 49, United States Code.

(2) MAXIMUM ANNUAL LIMIT ON PILOT PROGRAM.—

(A) IN GENERAL.—The total amount of all grants issued under this section shall not exceed $20,000,000 in any fiscal year.

(B) GRANT REDUCTION.—In complying with subparagraph (A), the Secretary—

(i) may proportionally reduce the amount of, or decline to issue, a supplemental grant under subsection (e); and

(ii) if the reduction under clause (i) is insufficient, shall proportionally reduce grants issued under subsection (d).

(g) Definitions.—In this section:

(1) COVERED TRANSPORTATION ACTIVITY.—The term “covered transportation activity” means the movement of people or property to, from, or within a launch site and the necessary or incidental activities associated with such movement through the use of—

(A) a vehicle (as defined in section 4 of title 1, United States Code);

(B) a vessel (as defined in section 3 of title 1, United States Code);

(C) a railroad (as defined in section 20102 of title 49, United States Code);

(D) an aircraft (as defined in section 40102 of title 49, United States Code); or

(E) a pipeline facility (as defined in section 60101 of title 49, United States Code).

(2) LAUNCH; LAUNCH SITE; LAUNCH VEHICLE; REENTRY SITE; REENTRY VEHICLE.—The terms “launch”, “launch site”, “launch vehicle”, “reentry site”, and “reentry vehicle” have the meanings given those terms in section 50902 of title 51, United States Code.

(3) OPERATOR.—The term “operator” means a person licensed by the Secretary to operate a launch or reentry site.

(4) QUALIFIED ENTITY.—The term “qualified entity” means a State, local, territorial, or Tribal government or private sector entity, or any combination thereof.

(5) SECRETARY.—The term “Secretary” means the Secretary of Transportation.

(h) Pilot program sunset.—This section shall cease to be effective on October 1, 2028.