FILED U.S. COURT OF AP P EALS E LEVEN T HC IRC UIT JUL 31 , 2006 THOMAS K. KAH

N CLERK [ P UB L I S H] I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

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________________________ F C C N o. 98- 00170 N A TI O N A L A SSO CI A TI O N O F STA TE U TI LI TY CO N SU M ER A D V O C A T E S , P e titio n e r , NA T I ON AL AS S OC I AT I ON OF R E GU L AT OR Y U T I L I T Y C O M M I S S I O N E R S , I n te rv e n o r - P e titio n e r , v ersu s F E D E R A L C O M M U N I C A T I O N S C O M M I S S I O N , R e s p o n d e n t, A T & T C O R P O R A T I O N , C I N G U L A R W I R E L E S S , I N C ., L E A P W I R E L E S S I N T E RN A T I O N A L , I N C ., N E X T E L C O M M U N I C A T I O N S , I N C ., S P R I N T C O R P O R A T I O N , T - M O B I L E U S A , I N C ., V E R I Z O N , CE LL ULAR TE LE COM M UN I CATI ON S an d I NTERNET A S S O C I A T I O N , I n te rv e n o r s - R e s p o n d e n ts .2 ___________________________

N o. 05- 12601

___________________________ F C C N o. 98- 00170 VE R MONT P UB L I C S E R VI C E B OA R D, P et i t i on er , ve r s us F E DE R AL C OMMUNI C AT I ON S C OMMI S S I ON , R e s p o n d e n t.

________________________ P e t i t i ons f

orR e vi e w of

D e c i s i ons of

the F e de r a l C om m uni c a t i ons C om m i s s i on

_________________________ ( Ju l y 31, 2006) B efo re B L A C K , P R Y O R an d C O X , C i rcu i tJu d g es. P R Y O R , C i rc ui tJudg e: T he key i ss ue pres ent ed i n thi s pet i t i on for r evi ew i s w hether the F eder al C o m m u n i c a t i o n s C o m m i s s i o n e x c e e d e d i t s au th o r i ty , u n d e rs e c t i o n 3 3 2 ( c ) ( 3 ) ( A) of the C om m uni c a t i ons A c tof 1934, w he n i ti s s ue d a n or de rtha tpr e e m pt e d the s t a t e s f r om r e qui r i ng orpr ohi bi t i ng the us e of l i ne i t e m s i n c us t om e rbi l l i ng f or c e l l ul a rw i r e l e s s s e rvi c e s . 47 U . S . C . § 332( c ) ( 3) ( A ) ; s e e T ruth- i n- B i l l i ng a nd3

B i l l i ng F orm a t , N a t ’ l A s s ’ n of S t a t e U t i l . C ons um e rA dvoc a t e s ’ P e t i t i on f or D e c l a r a t ory R ul i ng R e ga r di ng T ruth- i n- B i l l i ng, 20 F . C . C . R . 6448 ( 2005) [h erei n aft er “ S eco n d R ep o rtan d O rd er” o r “ th e O rd er”]. T h e C o m m i ssi o n arg u es, on the one ha nd, tha tthe r e gul a t i on of l i ne - i t e m bi l l i ng i nvol ve s “ r a t e s c ha r ge d” f o rc e llu la rw ir e le s s s e rv ic e s , w h ic h is th e e x c lu s iv e p r o v in c e o f f e d e r a l r e g u la tio n . 47 U . S . C . § 3 32 (c )( 3)(A ). R epre se nt at i ves of s t at e i nt er es t s argue, on the other h an d , th atth e reg u l at i o n o f l i n e-i t em b i l l i n g i n v o l v es “ o th er t erm s an d co n d i t i o n s” of c e l l ul a rw i r e l e s s s e rvi c e s , w hi c h a r e r e gul abl e bythe s t a t e s . I d. T hi s appe a l a l s o a ddr e s s e s thr e e thr e s hol d i s s ue s : ( 1) w he the r , unde rthe H ob bs A ct , 28 U . S . C . § 2 34 4, thi s C ou rtl ac ks subj ec tm att erj uri sdi ct i on t o revi ew the pe t i t i on f

i l e d by the V e rm ontP ubl i c S e rvi c e B oa r d ( the V e rm ontB oa r d) ; ( 2) w h e th e rth e N a tio n a l A s s o c ia tio n o f R e g u la to ryU tilityC o m m is s io n e r s ( th e S ta te U t i l i ty R egul at ors) m aypart i ci pat e a s an i nt erveno r; and (3) w hether the N at i on al A sso ci at i o n o f S t at e U t i l i ty C o n su m er A d v o cat es (th e S t at e C o n su m er A d v o cat es) ha s s t a ndi ng t o pe t i t i on f orr e vi e w . A s t o the thr e s hol d i s s ue s , w e di s m i s s the pe t i t i on of

the V e rm ontB oa r d be c aus e i ti s nota“ partya ggr i e ve d” bythe S e c ond R eportand O rder , bu tw e a l l ow the S t at e U t i l i ty R egul at ors t o con t i nu e a s an i nt erveno r and deny the m ot i on t o d i sm i ss the pet i t i on of the S t at e C on sum er A d v o c a te s , w h ic h h a v e s ta n d in g a s ac o n s u m e ro f w ir e le s s s e rv ic e .4

O n the key i ss ue, w e grantthe pet i t i on s f or re vi ew because w e c on cl ud e that the C om m i s s i on e xc e e de d i t s author i tyw he n i tpr e e m pt e d the s t a t e s f r om r e qui r i ng o rp r o h ib itin g th e u s e o f lin e ite m s . T h e s c o p e o f f e d e r a l au th o r ityto r e g u la te

“ ra t es ” or “ entry ” does noti ncl ud e the pres ent at i on of l i ne i t em s on cel l ul ar w i re l es s bi l l s. 47 U . S . C . § 3 32 (c )( 3)(A ). T hi s bi l l i ng prac t i ce i s am att erof “ other t e rm s a nd c ondi t i ons ” tha tC ongr e s s i nt e nde d t o be r e gul abl e by the s t a t e s . I d. I . B AC KG RO UN D T he S t at e C on sum erA dv ocat es fi l ed a pet i t i on w i th the C om m i ss i on that req u est ed a p ro h i b i t i o n o n th e u se o f l i n e i t em s b y cel l u l ar w i rel ess carriers un l ess the l i ne i t e m i s m a nda t e d by s t a t e orf e de r a l l a w . I n r e s pons e t o thi s pe t i t i on, the C om m i s s i on i s s ue d a n or de rtha ta m e nde d the T ruth- i n- B i l l i ng R ul e s of the C om m i s s i on, pr e e m pt e d the s t a t e s f r om r e qui r i ng orpr ohi bi t i ng the us e of l i ne ite m s in c u s to m e rb illin g f o rw ir e le s s s e rv ic e , a n d p r o p o s e d f u rth e rru le m a k in g to pree m ptthe st at es fr om the re gu l at i on of bi l l i ng prac t i ce s of w i re l es s s ervi ce pr ovi de r s . T he S t a t e C ons um e rA dvoc a t e s a nd the V e rm ontB oa r d pe t i t i on f or re vi ew of the O rderby the C om m i ss i on . S pri ntN ext el C orp. and C i ng ul ar W i r e l e s s L L C ( c ol l e c t i ve l y , the C a rr i e r s ) i nt e rve ne i n s upportof the C om m i s s i on, a n d th e S ta te U tilityR e g u la to r s in te rv e n e in s u p p o rt o f th e V e rm o n t B o a r d . T o e x p la in th e c o n te x t o f th is ap p e a l, w e a d d r e s s th r e e p r e lim in a rym a tte r s .5

W e f i r s tde s c r i be the e na c tm e nta nd a m e ndm e ntof the C om m uni c a t i ons A c ta nd the pr om ul ga t i on of

the T ruth- i n- B i l l i ng R ul e s . W e ne xtdi s c us s the pe t i t i on f or decl ar at ory rul i ng fi l ed by the S t at e C on sum erA dv ocat es and the S ec on d R eport an d O rd er i ssu ed b y th e C o m m i ssi o n i n resp o n se t o th atp et i t i o n . W e th en d i scu ss m ot i ons f

i l e d by the C a rr i e r s a nd the C om m i s s i on t o di s m i s s the pe t i t i ons of the V erm o n tB o ard an d th e S t at e C o n su m er A d v o cat es. A . T he C om m un i cat i on s A ct of 19 34 an d the T

ruth-i n-B i l l i ngR ul es T he C om m un i ca t i on s A ctof 19 34 , 47 U . S . C . §§ 15 1 t o 6 15 b, w as enac t ed

“ f orthe purpos e of

r e gul a t i ng i nt e r s t a t e a nd f or e i gn c om m e r c e i n c om m uni c a t i on b y w ir e a n d r a d io .” I d . § 1 5 1 . T h e A c t v e s te d th e C o m m is s io n w ith th e au th o r ity t o r e gul a t e r a di o f

r e que nc i e s us e d i n w i r e l e s s s e rvi c e s . I d. § 303. I n 1993, C on gres s am ended the C om m un i ca t i on s A ctt o cre at e anew re gu l at ory c l as s c al l ed “c o m m e r c ia l m o b ile r a d io s e rv ic e ,” w h ic h is “a n ym o b ile s e rv ic e [ ] th a t is prov i ded for profi tand m akes i nt er conn ec t ed se rvi ce avai l abl e [ ] t o the pu bl i c or [ ] t o such cl as se s of e l i gi bl e use rs as t o b e e ff ec t i vel y avai l abl e t o a subst ant i al po rt i on of the pu bl i c. ” I d. § 3 32 (d)( 1). T he am endm entgrant ed the fe dera l gove rnm e nte xc l us i ve author i ty t o r e gul a t e the “ r a t e s c ha r ge d” a nd “ e ntry ” of w i r e l e s s c a rr i e r s . S e e i d. § 332( c ) ( 3) ( A ) . A l though the s t a t e s w e r e pr ohi bi t e d f r om r e g u la tin g “r a te s ” o r“e n try ,” th e a m e n d m e n t p r o v id e d th a t th e s ta te s c o u ld6

c o n tin u e to r e g u la te “o th e rte rm s a n d c o n d itio n s ” o f w ir e le s s s e rv ic e . I d . § 33 2(c) (3)( A ). I n M a y 1999, i n r e s pons e t o agr ow i ng c onc e rn w i th c ons um e rf r aud i n the pr ovi s i on of

t e l e c om m uni c a t i ons s e rvi c e s , the C om m i s s i on pr om ul ga t e d the T ruthi n - Bi l l i n g Ru l e s . I n th e M a tt e ro f Tru th - i n - Bi l l i n g a n d Bi l l i n g Fo rma t , 1 4 F. C. C. R. 7492 ( 1999) [ he r e i na f

t e r“ F i r s tR e porta nd O r de r ” ] . T he s t a t e d purpos e of the R ul es w as “ t o ensure thatconsum er s are prov i ded w i th b as i c i nform at i on they nee d to m a k e in f

o rm e d c h o ic e s in ac o m p e titiv e te le c o m m u n ic a tio n s m a rk e tp la c e , w h ile atthe sa m e t i m e prot ec t i ng them se l ves f rom un sc rupu l ou s c om pet i t ors. ” I d. at 7493–94. T he T ruth- i n- B i l l i ng R ul e s r e qui r e d c ons um e rt e l e phone bi l l s t o ( 1) “ be cl earl y organi ze d, cl earl y i dent i fythe se rvi ce prov i der, and h i gh l i gh tany new pr ovi de r s ” ; ( 2) “ c ont a i n f ul l a nd non- m i s l e a di ng de s c r i pt i ons of c ha r ge s ” ; a nd ( 3)

“ cont ai n cl ear and conspi cuou s di sc l osure of any i nform at i on the consum erm ay n e e d to m a k e in q u ir ie s ab o u t, o rc o n te s t c h a r g e s , o n th e b ill.” I d . a t 7 4 9 6 ¶ 5 . T h e C o m m i ssi o n ex em p t ed w i rel ess serv i ce p ro v i d ers fro m sev eral o f th ese ru l es, i d . at7 5 0 1

– 0 2 ¶¶ 1 3

– 1 9 , b u tth e C o m m i ssi o n req u i red , am o n g o th er th i n g s, “( 1 ) th a t th e n a m e o f

th e s e rv ic e p r o v id e ra s s o c ia te d w ith e a c h c h a r g e b e c le a r ly i de nt i f i e d on the bi l l ; a nd ( 2) tha te a c h bi l l s houl d pr om i ne nt l ydi s pl a yat e l e phone num be rtha tc us t om e r s m a y c a l l f r e e - of - c ha r ge i n or de rt o i nqui r e ordi s put e a ny7

char ge cont ai ned o n the bi l l . ” I d. at75 02 ¶ 1 5. T he C om m i ss i on soug htfurther co m m en to n w h eth er th e T ru th -i n -B i l l i n g R u l es sh o u l d b e ap p l i ed t o w i rel ess s e rvi c e pr ovi de r s . I d. a t7535 ¶ 68. B . T he Stat e C on sum erA dvocat es an d the SecondR eport an d O rder T he S t a t e C ons um e rA dvoc a t e s “ a r e s t a t e a ge nc i e s de s i gna t e d byl a w s of thei r r es pect i ve j uri sdi ct i on s t o repres entthe i nt er es t s of ut i l i ty c on sum er s bef ore re gu l at ory a genci es and i n the court s. ” T he S t at e C on sum erA dv ocat es pet i t i on ed th e C o m m i ssi o n fo r a d ecl arat o ry ru l i n g th atp ro h i b i t ed w i rel ess t e l e c om m uni c a t i ons c a rr i e r s “ f r om i m pos i ng a nys e pa r a t e l i ne i t e m ors ur c ha r ge on a c ust om er ’ s bi l l thatw as no tm andat ed or autho ri ze d b y f eder al , st at e or l ocal la w .” S e c o n d R e p o rt a n d O r d e r , 2 0 F .C .C .R . a t 6 4 4 9 ¶ 1 . A lin e ite m is “ad is c r e te c h a r g e id e n tif

ie d s e p a r a te lyo n a n e n d u s e r ’s b ill.” I d . a t 6 4 6 2 ¶ 3 0 . A c c o r d in g to the S t a t e C ons um e rA dvoc a t e s , the us e of l i ne i t e m s tha tw e r e notr e qui r e d by f e de r a l ors t a t e l a w vi ol a t e d the T ruth- i n- B i l l i ng R ul e s a nd the C om m uni c a t i ons A ctbecause these l i ne i t em s “ do no tal l ow cust om er s t o acc urat el y a ss es s w hat th e y a r e b e in g b ille d f

o ro rp e rm it c u s to m e r s to d e te rm in e w h e th e rth e a m o u n ts c ha r ge d c onf

orm t o the pr i c e c ha r ge d f ors e rvi c e . ” I d. a t6454 ¶ 13 n. 32. I n r e s p o n s e to th e r e q u e s t f o rad e c la r a to ryru lin g f ile d b yth e S ta te C o n s u m e rA d v o c a te s , th e C o m m is s io n is s u e d an o tic e th a t s o lic ite d c o m m e n ts8

r e g a r d in g th e p e titio n . T h e n o tic e s ta te d th a t th e C o m m is s io n “s e e k s c o m m e n t,” aboutw he the rt e l e c om m uni c a t i ons c a rr i e r s s houl d be pr ohi bi t e d f r om “ i m pos i ng m on thl y l i ne-i t em char ges, surc harges or other f ee s on cust om er s bi l l s unl es s s uch c ha r ge s ha ve be e n e xpr e s s l y m a nda t e d byar e gul a t e d a ge nc y . ” N a t ’ l A s s ’ n of S t a t e U t i l . C ons um e rA dvoc a t e s ’ P e t i t i on f orD e c l a r a t oryR ul i ng R e ga r di ng T ruthi n- B i l l i ng, 19 F . C . C . R . 9541 ( 2004) ( publ i c not i c e ) . C om m e nt s w e r e s ubm i tt e d by w i r e l e s s c a rr i e r s , the S t a t e U t i l i ty R e gul a t or s , the S t a t e C ons um e rA dvoc a t e s , a nd i nd i vi du al consum er s. M any c on sum er s s ub m i tt ed bri ef com m ent s thatexpres se d c o n f u s io n a n d d is s a tis f

a c tio n w ith th e irm o n th lyte le p h o n e b ills . A f t e rthe publ i c c om m e ntpe r i od c l os e d, dur i ng the s o- c a l l e d “ pe rm i tbut d is c lo s e ” p r o c e e d in g s , s e e 4 7 C .F .R . § 1 .1 2 0 6 , th e C o m m is s io n r e c e iv e d e x p a rte pres ent at i on s and l ett er s. O n M ar ch 3, 20 05 , the S t at e U t i l i ty R egul at ors provi ded not i c e of or a l a nd w r i tt e n e x pa rt e c om m uni c a t i ons w i th the m e m be r s of the C om m i ss i on . A l so on M ar ch 3, the V erm on tB oard se ntan ex part e l ett er a d d r e s s e d to th e f

iv e m e m b e r s o f

th e C o m m is s io n . O n M a r c h 4 , th e p e rm it- b u tdi sc l ose per i od cl osed, and com m un i ca t i on s w i th the C om m i ss i on w er e no l on ger perm i tt ed. S ee i d. § 1 . 12 03 . O n thatdat e, the V erm on tB oard el ec troni ca l l y f i l ed not i c e of the e x pa rt e l e tt e ri tha d s e nton M a r c h 3, butthe C l e rk of the C om m i s s i on e xc l ude d the l e tt e rbe c aus e i t“ w a s r e c e i ve d dur i ng the S uns hi ne9

A g e n d ap e r io d , a n d is a s s o c ia te d w ith , b u t n o t m a d e p a rt o f th e r e c o r d .” O n M ar ch 18 , 20 05 , the C om m i ss i on i ss ued i t s c on cl usi on s i n an O rderthat a ddr e s s e d thr e e i s s ue s . F i r s t , i n a“ S e c ond R e porta nd O r de r , ” the C om m i s s i on am en d ed o r cl ari fi ed th e T ru th -i n -B i l l i n g R u l es an d ap p l i ed th ese ru l es t o w i rel ess s e rv ic e p r o v id e r s . S e c o n d R e p o rt a n d O r d e r , 2 0 F .C .C .R . a t 6 4 5 4

– 5 8 ¶¶ 1 4

– 2 0 . S e c ond, i n a“ D e c l a r a t ory R ul i ng, ” the C om m i s s i on de ni e d the pe t i t i on f i l e d bythe S t a t e C ons um e rA dvoc a t e s a nd pr e e m pt e d the s t a t e s f r om r e qui r i ng orpr ohi bi t i ng the us e of

l i ne i t e m s on m onthl y t e l e phone bi l l s byw i r e l e s s s e rvi c e pr ovi de r s . I d. at64 58 –6 46 7 ¶ ¶ 2 1– 36 . T hi rd, the C om m i ss i on re qu es t ed a “ S ec on d F urther N ot i c e of

P r opos e d R ul e m a ki ng” tha tpr opos e d t o a doptne w rul e s i n the bi l l i ng pr a c t i c e s of

w i r e l e s s s e rvi c e pr ovi de r s . I d. a t6467–6478 ¶¶ 37–57. A s t o the f

i r s ti s s ue , the C om m i s s i on r e vi e w e d the hi s t oryof the T ruth- i nB i l l i ng R ul e s a nd c onc l ude d “ tha t[ w i r e l e s s s e rvi c e pr ovi de r s ] s houl d no l onge rbe e xe m ptf r om [ the ] r e qui r e m e nttha tbi l l i ng de s c r i pt i ons be br i e f , c l e a r , nonm is le a d in g a n d in p la in la n g u a g e .” I d . a t 6 4 5 6 ¶ 1 6 ; s e e a ls o 4 7 C .F .R . § 64 . 24 01 (b). T he C om m i ss i on foun d that“ the i ncre as i ng nu m ber of c on sum er co m p l ai n t s t o th i s C o m m i ssi o n an d st at e reg u l at o ry ag en ci es reg ard i n g w i rel ess bi l l i ng pr a c t i c e s pr ovi de s e m pi r i c a l e vi de nc e tha tappl i c a t i on of the truth- i n- bi l l i ng rul es t o [w i re l es s s ervi ce prov i ders ] i s nec es saryand i n the pu bl i c i nt er es t . ”10

S e c ond R e porta nd O r de r , 20 F . C . C . R . a t6457 ¶ 18. T he C om m i s s i on

“ em ph as i ze [d] ” thatthe appl i ca t i on of the truth-i n-bi l l i ng rul es t o w i re l es s s ervi ce p r o v id e r s d id n o t “lim it[ ] s ta te s ’ au th o r ityto e n f o r c e th e iro w n g e n e r a llyap p lic ab le c ons um e rpr ot e c t i on l a w s , t o the e xt e nts uc h l a w s do notr e qui r e orpr ohi bi tus e of lin e ite m s .” I d . a t 6 4 5 8 ¶ 2 0 . A s to th e s e c o n d is s u e , th e C o m m is s io n d e n ie d th e p e titio n f ile d b yth e S ta te C o n s u m e rA d v o c a te s b e c au s e “n o th in g in th e T ru th - in - B illin g O r d e rp r o h ib its c a rr i e r s f r om us i ng non- m i s l e a di ng l i ne i t e m s . ” I d. a t6458–59 ¶ 23. A l though the C om m i ss i on foun d thatconsum er s and st at e r egul at ory a genci es w er e c on fuse d ab o u t th e u s e o f

lin e ite m s , th e C o m m is s io n “r e c o g n iz e [ d ] th a t o v e rb r o a d s ta te r e gul a t i ons . . . m a y f

rus tr a t e ourf

e de r a l rul e s a nd the f

e de r a l obj e c t i ve of m i ni m i zi ng re gu l at ory burdens on the com pet i t i ve [w i re l es s s ervi ce prov i der] i ndus try . ” I d. a t6459–60 ¶ 24. T he C om m i s s i on s t a t e d tha t“ i ti s pe rm i s s i bl e f or carr i er s t o rec ov er[r egul at ory] cost s s o l on g as they do so i n a m anner that c om pl i e s ” w i th the T ruth- i n- B i l l i ng R ul e s , but“ i ti s am i s l e a di ng pr a c t i c e f or c a rr i e r s t o s t a t e ori m pl y tha tac ha r ge i s r e qui r e d bythe gove rnm e ntw he n i ti s the carri ers’ b u si n ess d eci si o n as t o w h eth er an d h o w m u ch o f su ch co st s th ey ch o o se t o rec ov erdi re ct l y f

rom consum er s throu gh a s epar at e l i ne i t em char ge. ” I d. at 6 4 6 0

– 6 1 ¶¶ 2 6

– 2 7 .11

T he C om m i s s i on a l s o c onc l ude d tha t“ s t a t e r e gul a t i ons r e qui r i ng or proh i bi t i ng the use of l i ne i t em s . . . const i tut e r at e r egul at i on and . . . ar e pr e e m pt e d unde rs e c t i on 332( c ) ( 3) ( A ) ” of the A c t . I d. a t6462 ¶ 30. T he C om m i s s i on e xpl a i ne d tha t“ r a t e s , ” i nc l ude d “ r a t e l e ve l s , ” “ r a t e s truc tur e s , ” a nd “r a te e le m e n ts .” I d . a t 6 4 6 2

– 6 3 ¶ 3 0 . A f te rd e s c r ib in g lin e ite m s a s a“r a te e l e m e nt , ” the C om m i s s i on r e a s one d tha tthe pr ohi bi t i on orr e qui r e m e ntof l i ne i t em s “ di re ct l y a ff

ec t [s ] the m anner i n w hi ch the [w i re l es s s ervi ce prov i der] s tru c tu r e s its r a te s .” I d . a t 6 4 6 3 ¶¶ 3 0

– 3 1 . T he C om m i s s i on di s t i ngui s he d the abi l i tyof the s t a t e s t o m a nda t e or proh i bi tl i ne i t em s f

rom the abi l i ty t o i m po se t axes , st at e uni vers al se rvi ce supp ort char ges, and o ther di sc l osure l aw s, w hi ch the C om m i ss i on l ef tun di sturbed. Id. at 6464–65 ¶¶ 32–33. T he C om m i s s i on e xpl a i ne d tha t“ r e qui r i ng orpr ohi bi t i ng the use of l i ne i t em s” has a“ di re ctef fe ct ” on the abi l i ty of w i re l es s s ervi ce prov i ders t o s truc tur e r a t e s , butothe rs t a t e r e gul a t i ons ha ve a n “ i ndi r e c te f f e c t. . . on a com pany’ s behavi or. ” I d. at64 66 ¶ 3 4 (qu ot i ng W i re l es s C on sum er s A l l i ance O r d e r , 1 5 F .C .C .R . 1 7 ,0 2 1 , 1 7 ,0 3 4 ¶ 2 3 ( 2 0 0 0 ) ) . T h e C o m m is s io n s ta te d th a t it

“ m a y nota l w a y s be c l e a r ” w he the rl i ne i t e m r e gul a t i on i s pr e e m pt e d bys e c t i on 332( c ) ( 3) ( A ) , a nd i tw a s ne c e s s a ryt o l ook t o the “ s ubs t a nc e , [ a nd] notm e r e l ythe f o rm o f th e lin e ite m .” I d .12

T he C om m i s s i on pr e m i s e d i t s de c i s i on t o pr e e m pts t a t e r e gul a t i on on “ the p ro -co m p et i t i v e, d ereg u l at o ry fram ew o rkfo r [w i rel ess serv i ce p ro v i d ers] pres cr i bed b y C on gres s. ” I d. at64 66 ¶ 3 5. T he C om m i ss i on st at ed, “ C on gres s has d ir e c te d th a t th e r a te r e la tio n s h ip s b e tw e e n [ w ir e le s s s e rv ic e ] p r o v id e r s a n d th e ir c us t om e r s be gove rne d ‘ by the m e c ha ni s m s of the c om pe t i t i ve m a rke tpl a c e . ’ ” I d. ( qu ot i ng W i r e l e s s Cons ume r s A l l i a nc e O r de r , 15 F. C. C. R. a t17 , 03 2– 33 ¶¶ 2 0

– 2 1 ) ) . B e c au s e w ir e le s s s e rv ic e p r o v id e r s “h a v e c o m e to s tru c tu r e th e ir o fferi n g s o n a n at i o n al o r reg i o n al b asi s, ” st at e l aw s th atp ro h i b i to r req u i re th e u se o f l i n e i t em s w o u l d resu l ti n a “ p at ch w o rko f i n co n si st en tru l es” th at“ co n fl i ct [s] w ith f e d e r a l p o lic ie s .” I d . A s t o the thi r d i s s ue , the C om m i s s i on s ol i c i t e d c om m e nt s about“ the r ol e of s ta te s in r e g u la tin g b illin g ” a n d “o th e rtru th - in - b illin g is s u e s .” I d . a t 6 4 6 8 ¶ 3 7 . T he C om m i s s i on s oughtc om m e nt s aboutw he the rothe rs t a t e r e gul a t i on of bi l l i ng pr a c t i c e s w a s pr e e m pt e d by the C om m uni c a t i ons A c t . I d. a t6474 ¶ 50. T he C om m i s s i on e xpl a i ne d tha t“ l i m i t i ng s t a t e r e gul a t i on of . . . bi l l i ng pr a c t i c e s [ by w i re l es s s ervi ce prov i ders ] . . . w i l l el i m i nat e the i ncon si st entst at e r egul at i on that i s s pr e a di ng a c r os s the c ountry , m a ki ng na t i onw i de s e rvi c e m or e e xpe ns i ve f or c a rr i e r s t o pr ovi de a nd r a i s i ng the c os tof s e rvi c e t o c ons um e r s . ” I d. a t6475 ¶ 52. T he S t a t e C ons um e rA dvoc a t e s a nd the V e rm ontB oa r d f i l e d pe t i t i ons f

or13

r e vi e w of

the O r de r . T he S t a t e U t i l i tyR e gul a t or s i nt e rve ne d i n s upportof the V erm on tB oard. S pri ntN ext el and C i ng ul arW i re l es s, pu bl i c c orpo ra t i on s that p r o v id e c e llu la rw ir e le s s s e rv ic e s , in te rv e n e d in s u p p o rt o f th e C o m m is s io n . C . Mot i on s Fi led A

f terthe P et i t i on f

or R ev i ew A f t e rthe S t a t e C ons um e rA dvoc a t e s a nd the V e rm ontB oa r d pe t i t i one d f or r e vi e w of

the O r de r , the C om m i s s i on m ove d t o di s m i s s both the pe t i t i ons of the S t at e C on sum erA dv ocat es and the V erm on tB oard. T he C om m i ss i on ar gu ed that the S t a t e C ons um e rA dvoc a t e s l a c ke d s t a ndi ng t o pe t i t i on f orr e vi e w on be ha l f

of i t s m em b ers b ecau se th e S t at e C o n su m er A d v o cat es fai l ed t o est ab l i sh th at“ atl east on e of i t s m em bers m ee t s the m i ni m al A rt i cl e I II prer equi si t es for s t andi ng t o sue. ” T he C om m i ss i on cont ended thatw e l ac ked subj ec tm att erj uri sdi ct i on t o con si der the pet i t i on of the V erm on tB oard because i tw as no ta party t o the agency pr oc e e di ngs unde rthe H obbs A c t . 28 U . S . C . § 2344. T he C a rr i e r s s upport e d the m o tio n to d is m is s o f

th e C o m m is s io n . T he V erm on tB oard res po nd ed thati tw as a “ party a gg ri eved” because i thad p a rtic ip a te d in th e p r o c e e d in g s , 2 8 U .S .C . § 2 3 4 4 , o ra lte rn a tiv e ly , w a s ap a rty b e c au s e th e C o m m is s io n “e x p r e s s lys u b je c te d th e [ th e V e rm o n t B o a r d ] to its O r de r . ” F i r s t , the V e rm ontB oa r d a r gue d tha ti tha d pa rt i c i pa t e d i n the C om m i s s i on pr oc e e di ngs be c aus e i tboth s ubm i tt e d c om m e nt s i n the f i r s tT ruth- i n-14

B illin g O r d e r , w h ic h h a d th e s a m e a g e n c yd o c k e t n u m b e r , a n d s e n t a n e x p a rte l e tt e rt o the C om m i s s i one r s on M a r c h 3 tha tw a s de e m e d unt i m e l yby the C l e rk of the C om m i ss i on . T he V erm on tB oard m ov ed t o correc tthe adm i ni stra t i ve re cord b y in c lu d in g th e e x p a rte le tte r . S e c o n d , th e V e rm o n t B o a r d a r g u e dth a t e v e n if it had fai l ed t o p art i ci pat e i n the agency proce edi ng s, i tcoul d p et i t i on for r evi ew because i tw as “ di re ct l y bou nd ” by the O rder . T he S t a t e C ons um e rA dvoc a t e s r e s ponde d tha tthe i ra s s oc i a t i on ha s s t a ndi ng t o ch al l en g e th e O rd er ei th er o n b eh al f o f i t s m em b ers o r as a co n su m er o f w i rel ess se rvi ce . T he S t at e C on sum erA dv ocat es ar gu ed thatthey have as soci at i on al s t a ndi ng be c aus e the m e m be r s of the S t a t e C ons um e rA dvoc a t e s a r e c ha r ge d by s ta te s ta tu te s “to a d v o c a te o n b e h a lf o f c o n s u m e r s .” I n s u p p o rt o f th is a r g u m e n t, the S t at e C on sum erA dv ocat es subm i tt ed af fi davi t s f rom three i nd i vi du al m em bers o f th e S t at e C o n su m er A d v o cat es w h o are co n su m ers o f w i rel ess te le c o m m u n ic a tio n s s e rv ic e . T h e a f f id a v its s ta te d th a t th e p r e e m p tio n O r d e r“w ill m ake i tdi ff

i cul tt o enact. . . new st at e l aw s . . . thatar e nec es saryt o p rot ec t w i re l es s c ust om er s f

rom un re as on abl e, m i sl ea di ng , dece pt i ve or i l l egal l i ne i t em f e e s a nd c ha r ge s . ” T he S t a t e C ons um e rA dvoc a t e s a tt a c he d the a f f i da vi tof J ohn Pe rk i n s , th e Pr e s i d e n to f th e St a t e Co n s u me rA d v o c a t e s , w h o t e s t i f i e d , “ N A SU CA i s i t se l f aconsum erof t el epho ne se rvi ce s . . . . A l l of the m on thl y bi l l s f or se rvi ce15

r e c e iv e d b y [ th e S ta te C o n s u m e rA d v o c a te s ] c o n ta in lin e ite m s .” I n r e s pons e t o the s e a r gum e nt s , the C om m i s s i on m ove d t o w i thdr a w the m ot i on t o di s m i s s the S t a t e C ons um e rA dvoc a t e s , butc ont i nue d t o m ove f or d is m is s a l o f

th e V e rm o n t B o a r d . T h e C a rr ie r s th e n s u b m itte d th e iro w n m o tio n to di s m i s s the pe t i t i on of

the S t a t e C ons um e rA dvoc a t e s on the s a m e gr ounds the C om m i s s i on ha d a r gue d i n i t s w i thdr a w n m ot i on. W e gr a nt e d the m ot i on by the C om m i ss i on t o w i thd raw i t s m ot i on t o d i sm i ss the pet i t i on of the S t at e C on sum er A d v o c a te s , a n d w e o r d e r e d th a t th e m o tio n s to d is m is s th e p e titio n s o f th e S ta te C ons um e rA dvoc a t e s a nd the V e rm ontB oar d be c a rr i e d w i th the c a s e . T he m ot i on of the V e rm ontB oa r d t o c orr e c tthe a dm i ni s tr a t i ve r e c or d w a s a l s o c a rr i e d w i th the c a s e . I I . STA N D A R D O F R EVI EW W e r e vi e w ours ubj e c tm a tt e rj ur i s di c t i on de novo. W i l l i a m s v. B e s tB uy C o. , 26 9 F . 3d 13 16 , 13 19 (11th C i r. 20 01 ). W e r evi ew w hether aparty has s t a ndi ng t o c ha l l e nge a n or de rde novo. B oc he s e v. T ow n of P onc e I nl e t , 405 F . 3d 96 4, 97 5 (11 th C i r. ), ce rt . deni ed, ___ U . S . ___, 12 6 S . C t . 37 7 (20 05 ). W e r evi ew the autho ri ty of the C om m i ss i on t o regul at e und erthe C om m un i ca t i on s A ctbase d o n th e st an d ard en u n ci at ed i n C h ev ro n U . S . A . v . N atu ral R eso u rce D efen se C ou nci l , 46 7 U . S . 83 7, 84 2– 43 , 10 4 S . C t . 27 78 , 27 81 (198 4).16 I I I . DI S CUS S I ON B e f or e w e a ddr e s s the pe t i t i ons f orr e vi e w , w e m us tc ons i de ri s s ue s about o u rju r is d ic tio n . W e f

ir s t a d d r e s s w h e th e rth e V e rm o n t B o a r d is a“p a rty a g g r i e v e d ” b y th e Or d e ru n d e rth e Ho b b s Ac t . 2 7 U. S . C . § 2 3 4 4 . B e c au s e we concl ud e thatthe V erm on tB oard i s nota party a gg ri eved, w e nextconsi der w h eth er th e S t at e U t i l i ty R eg u l at o rs m ay co n t i n u e as i n t erv en o rs. W e th en ad d ress w he the rthe S t a t e C ons um e rA dvoc a t e s ha ve s t a ndi ng t o pe t i t i on f orr e vi e w of

the O r d e r . A f

te rw e c o n c lu d e th a t th e S ta te C o n s u m e rA d v o c a te s a n d th e S ta te U tility R e g u la to r s h a v e s ta n d in g , w e th e n tu rn to th e m e r its o f th e p e titio n s f

o rr e v ie w : w h e th e rs e c tio n 3 2 2 ( c ) ( 3 ) ( A ) e x p r e s s lyp r e e m p te d th e ab ilityo f th e s ta te s to r e q u ir e o rp r o h ib it th e u s e o f lin e ite m s b yw ir e le s s s e rv ic e p r o v id e r s . A. T he V erm on t B oa rd Is N

ota “P art

y A gg ri ev ed” U

nderthe H o b b s A c t. T he C om m un i ca t i on s A ctprov i des, “ A ny proceedi ng t o enj oi n, se tas i de, annu l , or suspend any order of the [C om m i ss i on ] . . . shal l be brou gh tas prov i ded by a nd i n the m a nne rpr e s c r i be d i n” the H obbs A c t . 47 U . S . C . § 407( a ) . T he H obbs A c tve s t s e xc l us i ve j ur i s di c t i on i n the c ourt s of appe a l s t o “ de t e rm i ne the v a lid ityo f

[ ] a ll f in a l o r d e r s o f

th e [ C o m m is s io n ].” 2 8 U .S .C . § 2 3 4 2 . “A n yp a rty a g g r ie v e d b y th e f

in a l o r d e rm a y . . . f

ile ap e titio n to r e v ie w th e o r d e r. . . .” I d . § 23 44 . “ A ‘ party a gg ri eved’ i s one w ho part i ci pat ed i n the agency proce edi ng . ”17

A l a . P ow e rC o. v. F C C , 311 F . 3d 1357, 1366 ( 11th C i r . 2002) . A nonpa rtyt o the p ro ceed i n g o f th e C o m m i ssi o n m u stfi l e a p et i t i o n fo r reco n si d erat i o n as a c o n d itio n p r e c e d e n t to ju d ic ia l r e v ie w o f th e O r d e r . 4 7 U .S .C . § 4 0 5 ( a ) . T he V e rm ontB oa r d pr e s e nt s thr e e a r gum e nt s tha ti ti s a“ pa rtya ggr i e ve d” b y th e O rd er. 2 8 U . S . C . § 2 3 4 4 . F i rst , th e V erm o n tB o ard co n t en d s th at , b ecau se i tpart i ci pat ed i n the F i rs tR eportand O rder , w hi ch shar es the sa m e docketnu m ber a s the S e c ond R e porta nd O r de r , i tha s pa rt i c i pa t e d i n the pr oc e e di ngs . S e c ond, the V erm on tB oard argues thati ti s a“ party a gg ri eved” because i tsubm i tt ed an ex part e l ett ert o the m em bers of the C om m i ss i on , w hi ch the V erm on tB oard al l eges w a s e rr o n e o u s lye x c lu d e d f r o m th e a d m in is tr a tiv e r e c o r d . A s p a rt o f th is a r gum e nt , the V e rm ontB oa r d m ove s t o c orr e c tthe a dm i ni s tr a t i ve r e c or d by i ncl ud i ng the ex part e c om m un i ca t i on . T hi rd, the V erm on tB oard argues thateven if it d id n o t p a rtic ip a te in th e p r o c e e d in g s , it m a yc h a lle n g e th e O r d e rb e c au s e it is s ubj e c tt o the O r de ra nd i t s a r gum e nt s c ha l l e nge the author i tyof the C om m i s s i on. W e ad d ress each arg u m en ti n tu rn an d co n cl u d e th ateach arg u m en tfai l s. 1. P a rt i c i pa t i on i n the F i r s tR e porta nd O r de rD oe s N otR e nde rthe

V e rm o n t B o a r d a“P a rtyA g g r ie v e d .” T he V e rm ontB oa r d a r gue s tha tthe c om m e nt s i ts ubm i tt e d i n the pr oc e e di ngs f

orthe F i r s tR e porta nd O r de rc onf e rpa rtys t a tus on i tt o pe t i t i on f or r e vi e w . B e c aus e the doc ke tnum be rf orthe F i r s tR e porta nd O r de r , D oc ke tN o. 98-18

1 7 0 , is th e s a m e a s th e S e c o n d R e p o rt a n d O r d e r , th e V e rm o n t B o a r d a r g u e s th a t it i s a“ party a gg ri eved” und erthe H ob bs A ct . W e di sa gree . T h e r e lia n c e b y th e V e rm o n t B o a r d o n th e d o c k e t n u m b e rto a r g u e th a t it is a“ pa rty a ggr i e ve d” by the S e c ond R e porta nd O r de ri s m i s pl a c e d. U nde rthe H obbs A c t , “ [ a ] ny pa rty a ggr i e ve d bythe f i na l or de r ” m a ype t i t i on f orr e vi e w . 28 U . S. C. § 2 3 4 4 . A l th o u g h th e Fi r s ta n d Se c o n d O r d e r s a n d Re p o rts h a r e th e s a me doc ke tnum be r , the H obbs A c tc onf e r s pa rtys t a tus on thos e w ho pa rt i c i pa t e d i n proceedi ng s thatl ed t o the O rderun der r evi ew . S ee A l a. P ow erC o. , 31 1 F . 3d at 1 3 6 6 . T he V e rm ontB oa r d i s nota“ pa rtya ggr i e ve d bythe f i na l or de r ” be c aus e the V e rm o n t B o a r d p e titio n s f o rr e v ie w o f

th e S e c o n d R e p o rt a n d O r d e r . 2 8 U .S .C . § 2344. R e ga r dl e s s of

the doc ke tnum be ra s s i gne d t o the pr oc e e di ng, the V e rm ont B oa r d ha d t o be apa rt i c i pa nti n the pr oc e e di ngs tha tl e d t o the S e c ond R e porta nd O rdert o b e a“ party a gg ri eved. ” I d. T he com m ent s thatthe V erm on tB oard s u b m itte d in th e p r o c e e d in g s th a t le d to th e F ir s t R e p o rt a n d O r d e ra r e im m a te r ia l: tho se com m ent s m ake the V erm on tB oard a “ party a gg ri eved by” the F i rs tR eport a nd O r de r , butthe y do notm a ke the V e rm ontB oa r d a“ pa rtya ggr i e ve d by ” the S ec on d R eportand O rder . Id. ; se e S i m m on s v. IC C , 71 6 F . 2d 40 , 45 (D . C . C i r. 19 83 ) ( st at i ng thatthe pet i t i on erw as no ta “ party a gg ri eved” w here the pet i t i on er19

p a rtic ip a te d in ap r o c e e d in g th a t w a s “p r o c e d u r a llya n d s u b s ta n tia llyin d e p e n d e n t” f r o m th e c h a lle n g e d o r d e r ) . 2 . T h e E x P a rte L e tte rS u b m itte d b yth e V e rm o n t B o a r d F a ile d to C om pl y w i th R e gul a t i ons I s s ue d bythe C om m i s s i on. T he V e rm ontB oa r d a l s o c ont e nds tha ti tpa rt i c i pa t e d i n the C om m i s s i on p r o c e e d in g b e c au s e it s u b m itte d a n e x p a rte le tte rth a t it a s s e rts w a s e rr o n e o u s ly e xc l ude d f

r om the a dm i ni s tr a t i ve r e c or d. T he C om m i s s i on di d noti nc l ude the le tte rin th e a d m in is tr a tiv e r e c o r d b e c au s e th e V e rm o n t B o a r d e le c tr o n ic a lly s ubm i tt e d not i c e of

the l e tt e rdur i ng the “ S uns hi ne ” pe r i od w he n no c o m m u n ic a tio n w a s a llo w e d w ith th e C o m m is s io n e r s . S e e 4 7 C .F .R . 1 .1 2 0 3 ( a ) . T he V e rm ontB oa r d m ove s t o c orr e c tthe a dm i ni s tr a t i ve r e c or d byi nc l udi ng the l ett er . W e a dd re ss the m ot i on fi l ed by the V erm on tB oard before w e c on si der w h e th e rth e e x p a rte le tte ris s u f f ic ie n t to c o n f

e rth e V e rm o n t B o a r d w ith p a rty s ta tu s . W e ha ve di s c r e t i on t o c orr e c tthe a dm i ni s tr a t i ve r e c or d t o “ s uppl ya ny o m i s s i o n f

r o m th e r e c o r d o rc o rr e c tam i s s t a t e m e n t . ” F e d . R . Ap p . P . 1 6 ( b ) . An a dm i ni s tr a t i ve r e c or d c ons i s t s of “ the or de rs oughtt o be r e vi e w e d ore nf or c e d, the f i ndi ngs orr e port s on w hi c h i ti s ba s e d, a nd the pl e a di ngs , e vi de nc e a nd proceedi ng s bef

ore the agency. ” F ed. R . A pp . P . 16 (a ). W e m a yd e n yam o tio n to c o rr e c t th e r e c o r d w h e r e , a m o n g o th e rr e a s o n s , th e p r o f f e r e d ite m d o e s n o t f

a ll20

w i thi n the defi ni t i on of the re cord, se e D eukm ej i an v. N ucl ear R egul at ory C om m ’ n, 75 1 F . 2d 12 87 , 13 24 (D . C . C i r. 19 84 ), the proffer ed i t em i s i m m at er i al o rin c o m p le te , A la . T is s u e C tr . o f U n iv . o f A la . v . S u lliv a n , 9 7 5 F .2 d 3 7 3 , 3 7 6 ( 7 th C i r. 19 92 ), or the agency di d n othave the op po rtun i ty t o con si der the evi dence, se e A lta w il v . I N S , 1 7 9 F .3 d 7 9 1 , 7 9 2 ( 9 th C ir . 1 9 9 9 ) . T he re gu l at i on s of the C om m i ss i on prov i de thatex part e pre se nt at i on s are a l l o w e d d u r i n g th e p e rmi t - b u t - d i s c l o s e p e r i o d o f th e a g e n c yp r o c e e d i n g . 4 7 C. F. R. § 1 .1 2 0 6 ( a ) . E x p a rte p r e s e n ta tio n s s h a ll b e in c lu d e d in th e a d m in is tr a tiv e r e c o r d if th e p r e s e n ta tio n in c lu d e s ac o v e rle tte ra n d “s h a ll c le a r lyid e n tif yth e p r o c e e d in g to w hi ch i tre l at es , i ncl ud i ng the do cketnu m ber, i f any, shal l i nd i ca t e thattw o cop i es h a v e b e e n s u b m itte d to th e S e c r e ta ry , a n d m u s t b e lab e le d a s a n e x p a rte p r e s e n ta tio n .” 4 7 C .F .R . § 1 .1 2 0 6 ( b ) ( 1 ) . T o b e c o n s id e r e d , e x p a rte c o m m u n ic a tio n s m u s t c o m p lyw ith th e s e p r o v is io n s . S e e id . § 1 .1 2 0 6 ( a ) . T he V e rm ontB oa r d c onc e de s tha ti t s e l e c tr oni c s ubm i s s i on on M a r c h 4 fa i l ed t o i ncl ud e acover l ett ert o exp l ai n thati tprov i ded n ot i ce for the M ar ch 3 ex part e l ett er . T here w as no w ayfor the C om m i ss i on t o d i sc ern thatthe l ett er e le c tr o n ic a llyf

ile d o n M a r c h 4 d is c lo s e d a n e x p a rte c o m m u n ic a tio n th a t tim e ly ha d be e n s ubm i tt e d t o the f i ve C om m i s s i one r s . B e c aus e the e l e c tr oni c s ubm i s s i on f a i l e d t o i de nt i f

y tha ti tdi s c l os e d a n e x pa rt e l e tt e rs ubm i tt e d on M a r c h 3, i ti s not21

p r o p e r lyp a rt o f

th e r e c o r d th a t th e a g e n c ys h o u ld h a v e in c lu d e d . 4 7 C .F .R . § 1. 12 06 (b)( 1) (s t at i ng thatthe cover l ett erthatprov i des not i ce “ m ustbe l abel ed as a n e x p a rte p r e s e n ta tio n ” ) ; s e e D e u k m e jia n , 7 5 1 F .2 da t 1 3 2 4 ( “I n d is c h a r g in g th e ir obl i ga t i on t o m oni t ora ge nc y a c t i on, c ourt s r e vi e w ar e c or d c om pi l e d bythe a ge nc y a nd c ont a i ni ng i t s r a t i ona l e a nd s upport i ng f i ndi ngs . . . . ” ) . T he C om m i s s i on f

ol l ow e d i t s r e gul a t i ons w he n i te xc l ude d the e x pa rt e l e tt e rf r om the a dm i ni s tr a t i ve r e c or d. W e d en y th e m o ti o n to su p p lem en t th e r ec o rd w ith th e e x p ar te lett er . “ W e m u s tg i v e s u b s t a n t i a l d e f e r e n c e t o a n a g e n c y ’ s i n t e rp r e t a t i o n o f i t s o wn r e g u la tio n s ,” T h o m a s J e f f e r s o n U n iv . v . S h a la la , 5 1 2 U .S . 5 0 4 , 5 1 2 , 1 1 4 S . C t. 2 3 8 1 , 1 2 8 6 ( 1 9 9 4 ) , a n d th e C o m m is s io n w a s n o t “a rb itr a rya n d c ap r ic io u s ” w h e n it e xc l ude d the l e tt e rf

r om the a dm i ni s tr a t i ve r e c or d, 5 U . S . C . § 706( 2) ( A ) . T he V e rm o n t B o a r d d id n o t “p a rtic ip a te in th e p r o c e e d in g s ” b ys u b m ittin g th e le tte r . A l a . P ow e rC o. , 311 F . 3d a t1366. 3. N o E xc e pt i on E xi s t s t o A l l ow the V e rm ontB oa r d t o P e t i t i on f or R evi ew of the O rder . T h e V e rm o n t B o a r d a lte rn a tiv e lya r g u e s th a t, e v e n if it d id n o t p a rtic ip a te in th e p r o c e e d i n g s , i ti s ap a rty e n t i t l e d t o p e t i t i o n f o rr e v i e w o f

th e Or d e rf

o rtwo r e a s o n s . F ir s t, th e V e rm o n t B o a r d c o n te n d s th a t it is a“p a rtya g g r ie v e d ” b e c au s e it i s s ubj ec tt o the O rder . S e c ond, the V e rm ontB oa r d a r gue s tha t“ pa rtys t a tus i s not22

. . . r e q u ir e d w h e n th e a g e n c y h a s a c te d b e y o n d its au th o r ity .” T h e a r g u m e n t th a t th e V e rm o n t B o a r d m a yp e titio n f o rr e v ie w b e c au s e it is s ubj e c tt o the O r de rf

a i l s be c aus e the V e rm ontB oa r d m i s unde r s t a nds the s c ope of ou r j uri sdi ct i on . T he H ob bs A ctconfer s the court s of app ea l s w i th subj ec tm att er j uri sdi ct i on t o revi ew the orders of adm i ni stra t i ve agenci es . “ S i nce pet i t i on er s w e r e ne ve rpa rt i e s t o the rul e m a ki ng pr oc e e di ngs , thi s c ourts i m pl ydoe s notha ve j ur i s di c t i on ove rthe i rc l a i m . ” G a ge v. U . S . A t om i c E ne r gyC om m ’ n, 479 F . 2d 1 2 1 4 , 1 2 1 8 ( D .C . C ir . 1 9 7 3 ) . T h e c a s e s c ite d b yth e V e rm o n t B o a r d a r e in ap p o s ite because they i nv ol ve the ext ensi on of pers on al j uri sdi ct i on , G i l chri stv. G en. E l ec . C ap. C orp. , 26 2 F . 3d 29 5, 30 0– 01 (4th C i r. 20 01 ), R . M . S . T i t ani c, Inc. v. H aver , 171 F . 3d 943, 955 ( 4th C i r . 1999) , orthe r e l a xa t i on of prude nt i a l s t a ndi ng r e qui r e m e nt s , D e vl i n v. S c a r da l l e tt i , 536 U . S . 1, 7–8, 122 S . C t . 2005, 2009–10 (200 2). T hese ca se s do n otal l ow a c ou rtt o exp and the st atut ory grantof subj ec t m a tte rju r is d ic tio n to r e v ie w a n a g e n c yd e c is io n . T he ar gu m entthata pet i t i on erneed no tbe a party w hen the pet i t i on er c h a lle n g e s th e au th o r ityo f a n a d m in is tr a tiv e a g e n c yru n s c o n tr a ryto o u rp r e c e d e n t. W e have hel d that“ [a ] ‘ party a gg ri eved’ i s one w ho part i ci pat ed i n the agency pr oc e e di ng. ” A l a . P ow e rC o. , 311 F . 3d a t1366. I n s upportof i t s a r gum e nt , the V erm on tB oard ci t es tw o d ec i si on s f rom the F i fth C i rc ui t , se e W al es T ransp. , Inc.23

v . I CC, 7 2 8 F. 2 d 7 7 4 , 7 7 6 n . 1 ( 5 th Ci r . 1 9 8 4 ) ; A m. Tru c k i n g A s s ’ n s , I n c . v . I CC, 6 7 3 F .2 d 8 2 , 8 4 n .4 ( 5 th C ir . 1 9 8 2 ) , b u t w e a r e b o u n d b yo u rd e c is io n th a t a pe t i t i one rm us tbe a“ pa rty a ggr i e ve d” w i thoutr e ga r d t o the type of c ha l l e nge the pe t i t i one rs e e ks t o br i ng. A l a . P ow e rC o. , 311 F . 3d a t1366; c f . B a r os v. T e x. M e xi c a n R y . C o. , 400 F . 3d 228, 238 n. 24 ( 5th C i r . 2005) ( s t a t i ng tha tthe exce pt i on t o p arty s t atus di sc usse d i n A m er i can T rucki ng A ss ’ ns has bee n “s qu a r e lyr e

je c te d b y s o m e o f

o u rs is te rc ir c u its ” ) ; s e e a ls o E r ie - N ia g a r aR a il S t e e r i ng C om m . v. S ur f a c e T r a ns p. B d. , 167 F . 3d 111, 112 ( 2d C i r . 1999) (c on cl ud i ng thatthe di sc ussi on i n A m er i can T rucki ng A ss ’ ns i s di ctum and W al es T r a ns port a t i on e rr one ous l y r e l i e d on A m e r i c a n T ruc ki ng A s s ’ ns ) . T he V e rm ont B oa r d i s nota“ pa rty a ggr i e ve d” e nt i t l e d t o pe t i t i on f orr e vi e w of

the O r de rby the C o m m is s io n . W e gr a ntthe m ot i on by the C om m i s s i on t o di s m i s s the pe t i t i on of the V erm on tB oard. N ei ther the part i ci pat i on of the V erm on tB oard i n the F i rs tR eport a nd O r de rnorthe e x pa rt e l e tt e rtha tw a s pr oc e dur a l l yde f i c i e ntc onf

e rpa rtys t a tus on the V erm on tB oard, and n o except i on excuse s the fa i l ure of the V erm on tB oard to p a rtic ip a te in th e p r o c e e d in g s o f th e C o m m is s io n . W e la c kju r is d ic tio n to c o n s id e rth e p e titio n f

ile d b y th e V e rm o n t B o a r d . B . T h e S ta te Ut i l i t

y R eg u la to rs M

a y P ro ceed

A s a n In terven o r.24

A l tho ug h w e di sm i ss the V erm on tB oard, the S t at e U t i l i ty R egul at ors m ay c ont i nue a s a n i nt e rve nor . “ I nt e rve nt i on . . . c a nnotc r e a t e j ur i s di c t i on i f none exi st ed before, ” 7C C harl es A l an W ri gh t , A rthu r R . M i l l er& M ary K ayK ane, F e de r a l P r a c t i c e a nd P r oc e dur e § 1917, a t457–58 ( 2d e d. 1986) , butw e ha ve di s c r e t i on t o “ tr e a ti nt e rve nt i on a s as e pa r a t e a c t i on, e s pe c i a l l yw he n the i nt e rve nor h a s a n in d e p e n d e n t b a s is f o rju r is d ic tio n ,” A tk in s v . S ta te B d . o f E du c . o f N .C ., 41 8 F . 2d 87 4, 87 5 (4th C i r. 19 69 ) ( per c uri am ); se e 7C W ri gh t , M i l l er& K ane, F e de r a l P r a c t i c e a nd P r oc e dur e § 1917, a t458–59; s e e a l s o F ul l e rv. V ol k, 351 F . 2d 32 3, 32 8– 29 (3d C i r. 19 65 ). B ec ause the S t at e U t i l i ty R egul at ors part i ci pat ed in th e p r o c e e d in g s b y s u b m ittin g c o m m e n ts a n d n o tic e o f e x p a rte c o m m u n ic a tio n s , th e S ta te U tilityR e g u la to r s h a v e in d e p e n d e n tlye s tab lis h e d th e ir s t a tus a s “ pa rty a ggr i e ve d. ” 28 U . S . C . § 2344. W e e xe r c i s e ourdi s c r e t i on t o a l l ow th e S t a t e Ut i l i ty R e g u l a t o r s t o c o n t i n u e i n th e p e t i t i o n f o rr e v i e w. C . T he State C ons um e rA dv oc ate s H av e Standi ng to P e t i t i on f o rRe v i e w. T he C ons t i tut i on of

the U ni t e d S t a t e s l i m i t s the s ubj e c tm a tt e rj ur i s di c t i on of f e de r a l c ourt s t o “ C a s e s ” a nd “ C ontr ove r s i e s . ” U . S . C ons t . , A rt . I I I § 2. “ [ T ] he c or e c om pone ntof

s t a ndi ng i s a n e s s e nt i a l a nd unc ha ngi ng pa rtof the ca se -or- controvers y r equi re m entof A rt i cl e I II . ” L uj an v. D ef enders of W i l dl i fe , 5 0 4 U .S . 5 5 5 , 5 6 0 , 1 1 2 S . C t. 2 1 3 0 , 2 1 3 6 ( 1 9 9 2 ) . T he m i ni m um r e qui r e m e nt s f or25

const i tut i on al st andi ng ar e “ i nj ury i n fac t , ” “ a c ausa l conn ec t i on betw ee n the i nj ury an d th e co n d u ctco m p l ai n ed o f, ” an d th atth e “ i n j u ry w i l l b e red ressed b y a fav o rab l e d eci si o n . ” Id . at5 6 0

– 6 1 , 1 1 2 S . C t . at2 1 3 6 . O n a m o t i o n t o d i sm i ss,

“ generalfa ctual al l egat i on s of i nj ury r es ul t i ng fr om the defendant ’ s c on du ctm ay s u f f ic e .” I d . a t 5 6 1 , 1 1 2 S . C t. a t 2 1 3 7 . T h e C a rr ie r s m o v e to d is m is s th e S ta te C o n s u m e rA d v o c a te s f o rf a ilu r e to es t abl i sh as soci at i on al st andi ng . T he C arri er s c on t end thatthe S t at e C on sum er A dv ocat es cann otes t abl i sh thatatl ea ston e of thei r m em bers has s uffe re d part i cul ar i ze d i nj ury and on l y the m em ber a genci es of the S t at e C on sum er A dv ocat es have the autho ri ty t o p et i t i on for r evi ew . T he S t at e C on sum er A dvoc a t e s a r gue tha tw e ne e d nota ddr e s s thi s a r gum e ntbe c aus e the yha ve s ta n d in g o n a n a lte rn a tiv e g r o u n d . T he S t a t e C ons um e rA dvoc a t e s a r gue tha tthe yne e d notr e l yon a s s oc i a t i ona l s t a ndi ng be c aus e the ya r e ac ons um e rof w i r e l e s s t e l e c om m uni c a t i ons se rvi ce s thatre ce i ves bi l l s. T he af fi davi tsubm i tt ed by the S t at e C on sum er A dv ocat es fr om the P re si dentof thei r organi za t i on st at ed, “ N A S U C A i s i t se l f a consum erof t el epho ne se rvi ce s, bo th w i re l i ne and w i re l es s. Itpres ent l y has w i r e l i ne s e rvi c e w i th V e r i z on a nd A T & T a nd w i r e l e s s s e rvi c e w i th V e r i z on W i r e l e s s . A l l of

the m onthl y bi l l s f

ors e rvi c e r e c e i ve d byN A S U C A c ont a i n l i ne26

i t em s. ” T he S t a t e C ons um e rA dvoc a t e s ha ve e s t abl i s he d “ ge ne r a l f a c tua l a l l e ga t i ons o f i n j u ry r e s u l t i n g f

r o m th e d e f

e n d a n t ’ s c o n d u c t . ” Lu

j a n , 5 0 4 U . S. a t5 6 1 , 1 1 2 S. C t . a t2136. T he S t a t e C ons um e rA dvoc a t e s c ont e nd tha t , be c aus e the pr e e m pt i on of the C om m i s s i on a f

f e c t s the abi l i tyof

the s t a t e s t o r e gul a t e the di s c l os ur e of c ha r ge s on c ons um e rw i r e l e s s bi l l s , the O r de ra dve r s e l ya f f e c t s the i nt e r e s t s of

the S t a t e C ons um e rA dvoc a t e s a s ac ons um e rof w i r e l e s s s e rvi c e . T he c om pl a i nt s of the S t a t e C ons um e rA dvoc a t e s a r e r e dr e s s abl e bygr a nt i ng the pe t i t i on a nd v a c a tin g th e O r d e ro f

th e C o m m is s io n . T h a t d is p o s itio n w o u ld a llo w th e s ta te s to r e qui r e orpr ohi bi tthe us e of l i ne i t e m s byw i r e l e s s s e rvi c e pr ovi de r s , w hi c h the S ta te C o n s u m e rA d v o c a te s c o n te n d w o u ld p r o te c t c o n s u m e r s f r o m f r au d . T h e C a rr ie r s a r g u e th a t th e S ta te C o n s u m e rA d v o c a te s m a yn o t r e lyo n th e ir s ta tu s a s ac o n s u m e ro f

w ir e le s s s e rv ic e a s ab a s is f o rs ta n d in g b e c au s e th e S ta te C o n s u m e rAd v o c a t e s “ c h o s e n o tt o b a s e [ th e i r ] r i g h tt o s e e kr e v i e w o n [ th e i r ] o wn r e c e i ptof

phone bi l l s ” i n the pe t i t i on f orr e vi e w . W e di s a gr e e . W he n rul i ng on m ot i ons t o di s m i s s f

orl a c k of

s t a ndi ng, f

e de r a l c ourt s m a yc ons i de ra f f i da vi t s a nd o th e rf a c tu a l ma t e r i a l s i n th e r e c o r d . Se e Lu j a n v . N a t ’ l W i l d l i f

e Fe d ’ n , 4 9 7 U . S. 8 7 1 , 8 8 1 , 1 1 0 S . C t. 3 1 7 7 , 3 1 8 5 ( 1 9 9 0 ) ( c o n s id e r in g a f f id a v its s u b m itte d in re spon se t o a m ot i on for s um m ary j ud gm entt o est abl i sh st andi ng ); F W /P B S , Inc.27

v. C i ty of D al l as , 49 3 U . S . 21 5, 23 3, 11 0 S . C t . 59 6, 60 9 (19 90 ), ov errul ed i n p art o n o th e rg r o u n d s b y Ci ty o f Li tt l e t o n v . Z. J . G i f

t s D - 4 , LLC, 5 4 1 U . S. 7 7 4 , 1 2 4 S. C t . 22 19 (200 4) (“ [S ] t andi ng . . . m ustaf fi rm at i vel y app ear i n the re cord. ” ( i nt ernal qu ot at i on s and ci t at i on s om i tt ed) ( em ph as i s a dd ed)) . B ec ause the S t at e C on sum er A dvoc a t e s ha ve e s t abl i s he d s t a ndi ng t o pe t i t i on f orr e vi e w a s ac ons um e rof w i r e l e s s s e rvi c e thr ough the a f f i da vi tof the i rP r e s i de nt , w e de nythe m ot i on by the C a rr ie r s . W e n e x t tu rn to th e m e r its o f th e p e titio n s f

o rr e v ie w f

ile d b yth e S ta te U tilityR e g u la to r s a n d th e S ta te C o n s u m e rA d v o c a te s . D . T h e C o m m is s io n E

x c e e de d I ts A u th o r ityW

h e n I t P r e e m p te d S ta te R egulat i on of

L i ne-I tem B i l l i ngU

nderSect i on 33 2(c) (3)( A).

“ T hi s C ons t i tut i on, a nd the L a w s of the U ni t e d S t a t e s w hi c h s ha l l be m a de in P u r s u a n c e th e r e o f

. . . s h a ll b e th e s u p r e m e L a w o f th e L a n d [ ,] . . . a n yT h in g in th e Co n s t i tu t i o n o rLa w s o f a n y St a t e t o th e Co n tr a ryn o tw i th s t a n d i n g . ” U . S. C on st . A rtV I. “ T he S up re m ac y C l ause of A rt . V I of the C on st i tut i on prov i des Co n g r e s s w i th th e p o w e rt o p r e - e mp ts t a t e l a w . ” La . Pu b . Se rv . Co mm’ n v . FCC, 476 U . S . 355, 368, 106 S . C t . 1890, 1898 ( 1986) . “ [ A ] f e de r a l a ge nc ya c t i ng w ith in th e s c o p e o f

its c o n g r e s s io n a llyd e le g a te d au th o r itym a yp r e - e m p t s ta te r e g u la tio n .” I d . a t 3 6 9 , 1 0 6 S . C t. a t 1 8 8 7

– 8 8 . “W h e r e C o n g r e s s h a s d ir e c te d a n a d m in is tr a to rto e x e r c is e h is d is c r e tio n , h is j ud gm ent s are subj ec tt o j ud i ci al re vi ew on l y t o d et erm i ne w hether he has28

e x c e e d e d h i s s t a tu t o ry au th o r i ty o ra c t e d a rb i tr a r i l y . ” F i d . F e d . S a v . & L o a n v . De l a C uest a, 45 8 U . S . 14 1, 15 3– 54 , 10 2 S . C t . 30 14 , 30 22 –2 3 (19 82 ) ( qu ot i ng U ni t ed S t at es v. S hi m er , 36 7 U . S . 37 4, 38 1– 82 , 81 S . C t . 15 54 , 15 60 (196 0)). W here a fe dera l agencypree m pt s s t at e l aw , “ the i nq ui rybecom es w hether the fe dera l a g e n c y h a s p r o p e r lye x e r c is e d its o w n d e le g a te d au th o r ityr a th e rth a n s im p ly w he the rC ongr e s s ha s pr ope r l y e xe r c i s e d the l e gi s l a t i ve pow e r . ” N e w Y ork v. F C C , 486 U . S . 57, 68, 108 S . C t . 1637, 1642 ( 1988) . “ F e de r a l r e gul a t i ons ha ve no l es s pre -e m pt i ve ef

fe ctthan federa l st atut es . ” F i d. F ed. S av. & L oan, 45 8 U . S . at 1 5 3 , 1 0 2 S . C t. a t 3 0 2 2 . F ed eral l aw m ay p reem p tst at e l aw i n th ree w ays. F i rst , ex p ress

“ [p ] re-em p t i o n o ccu rs w h en C o n g ress, i n en act i n g a fed eral st atu t e, ex p resses a c l e a ri nt e ntt o pr e - e m pts t a t e l a w . ” L a . P ub. S e rv. C om m ’ n, 476 U . S . a t368, 106 S . C t . a t1898. S e c ond, c onf l i c tpr e e m pt i on oc c ur s “ w he n the r e i s outr i ghtor ac tual confl i ctbetw ee n federa l and st at e l aw . ” I d. T hi rd, fi el d p re em pt i on occurs “w h e r e c o m p lia n c e w ith b o th f e d e r a l a n d s ta te la w is in e f f e c t p h y s ic a lly im p o s s ib le .” I d . “[ T ]h e c a te g o r ie s o f p r e e m p tio n a r e n o t r ig id lyd is tin c t . . . f ie ld pr e - e m pt i on m a y be unde r s t ood a s as pe c i e s of c onf l i c tpr e - e m pt i on. ” C r os byv. N at ’ l F orei gn T ra de C ou nci l , 53 0 U . S . 36 3, 37 3, 12 0 S . C t . 22 88 , 22 94 (200 0); se e C al eb N el son, P re em pt i on , 86 V a. L . R ev. 22 5, 26 2 (20 00 ).29

“ ‘ [ T ] he purpos e of

C ongr e s s i s the ul t i m a t e t ouc hs t one ’ of pr e - e m pt i on a na l y s i s . ” C i pol l one v. L i gge ttG r oup, I nc . , 505 U . S . 504, 516, 112 S . C t . 2608, 2 6 1 7 ( 1 9 9 2 ) ( p l u r a l i ty o p i n i o n ) ( q u o t i n g M a l o n e v . W h i t e M o t o rCo rp . , 4 3 5 U . S. 49 7, 50 4, 98 S . C t . 11 85 (197 8)). “ [A ] ny un ders t andi ng of the sc op e of a pre- em pt i on st atut e m ustre stpri m ar i l y on a fa i r und er st andi ng of cong re ss i on al purpos e . ” M e dtr oni c , I nc . v. L ohr , 518 U . S . 470, 485–86, 116 S . C t . 2240, 2250 ( 1996) . “ C ongr e s s ’ i nt e ntm a y be ‘ e xpl i c i t l ys t a t e d i n the s t a tut e ’ s l a ngua ge or im p lic itlyc o n ta in e d in its s tru c tu r e a n d p u rp o s e .’” I d . ( q u o tin g J o n e s v . R a th P a c ki ng C o. , 430 U . S . 519, 525, 97 S . C t . 1305 ( 1977) ) . C ourt s i nt e rpr e tthe t e xt of the s t a tut e a nd appl y tr a di t i ona l c a nnons of s t a tut oryc ons truc t i on t o di s c e rn the i n t e n to f Co n g r e s s . Se e M CI Te l e c o mms . Co rp . v . A m. Te l . & Te l . Co . , 5 1 2 U . S. 2 1 8 , 2 2 9 , 1 1 4 S. Ct . 2 2 2 3 , 2 2 3 1 ( 1 9 9 4 ) ; s e e , e . g . , La . Pu b . Se rv . Co mm’ n , 4 7 6 U . S. a t 3 6 9 , 1 0 6 S . C t. a t 1 8 9 9 .

“ Wh e n we c o n s i d e ri s s u e s th a ta r i s e u n d e rth e S u p r e m a c yC l au s e . . . , we s t a rtw i th the a s s um pt i on tha tthe hi s t or i c pol i c e pow e r s of the s t a t e s a r e not s upe r s e de d by f

e de r a l l a w unl e s s pr e e m pt i on i s the c l e a ra nd m a ni f e s tpurpos e of C on gres s. ” C l i ff

v. P ay co G en. A m . C re di t s, Inc. , 36 3 F . 3d 11 13 , 11 22 (11th C i r. 2 0 0 4 ). “A lth o u g h th e C o n stitu ti o n m ak es a f ew o f th e f

ed er al g o v ern m en t’ s p o w e r s e x c lu s iv e , th e s ta te s r e ta in c o n c u rr e n t au th o r ityo v e rm o s t o f th e a r e a s in30

w h ic h th e f

e d e r a l g o v e rn m e n t c a n a c t.” N e ls o n , s u p r a , a t 2 2 5 . W e a c c o r d in g ly p r e s u m e th a t “C o n g r e s s d o e s n o t c a v a lie r lyp r e - e m p t s ta te [ ]la w .” M e d tr o n ic , I n c ., 51 8 U . S . at48 5, 11 6 S . C t . at22 50 . “ [F ] eder al re gu l at i on of a f i el d o f c om m er ce s houl d notbe de e m e d pr e e m pt i ve of s t a t e r e gul a t orypow e ri n the abs e nc e of p e r s u a s iv e r e a s o n s — e ith e rth a t th e n a tu r e o f th e r e g u la te ds u b

je c t m a tte rp e rm its no other c on cl usi on , or thatthe C on gres s has un m i st akabl y s o o rdai ned. ” F l a. L i m e & A voc a do G r ow e r s , I nc . v. P aul , 373 U . S . 132, 142, 83 S . C t . 1210, 1217 ( 1963) . A l though the pr e s um pt i on a ga i ns tpr e e m pt i on c a nnottrum p ourr e vi e w of the O r de runde rC he vr on, thi s pr e s um pt i on gui de s ourunde r s t a ndi ng of the s t a tu t o ry l a n g u a g e th a tp r e s e rv e s th e p o w e ro f th e St a t e s t o r e g u l a t e “ o th e rt e rms a n d c o n d itio n s .” S e e S m ile y v . C itib a n k , N .A ., 5 1 7 U .S . 7 3 5 , 7 4 3

– 4 4 , 1 1 6 S . C t. at1 7 3 0 , 1 7 3 5 (1 9 9 6 ). W e ap p l y th ese p ri n ci p l es t o d et erm i n e w h eth er C o n g ress grant ed the C om m i ss i on autho ri ty t o p re em ptthe st at e r egul at i on of l i ne i t em b illin g . I n the S e c ond R e porta nd O r de r , the C om m i s s i on pr e e m pt e d s t a t e r e gul a t i on of l i ne-i t em bi l l i ng base d o n the express l angu age of the C om m un i ca t i on s A ct . S ee 20 F . C . C . R . a t6462–63 ¶ 30, 6466 ¶ 35. T he C om m i s s i on c onc l ude d tha tthe l angu age of s ec t i on 33 2(c) (3)( A ) of the C om m un i ca t i on s A ct“ ‘ proh i bi t [s ] st at es f r om pr e s c r i bi ng, s e tt i ng orf i xi ng r a t e s ’ of

w i r e l e s s s e rvi c e pr ovi de r s . ” I d. a t646231

¶ 30 ( quot i ng P i tt e nc r i e f C om m c ’ ns , I nc . , 13 F . C . C . R . 1735, 1745 ( 1997) ) . T he C o m m i ssi o n ex p l ai n ed th at“ [e] ffo rt s b y i n d i v i d u al st at es t o reg u l at e [w i rel ess s e rvi c e pr ovi de r s ’ ] r a t e s thr ough l i ne i t e m r e qui r e m e nt s . . . w oul d be i nc ons i s t e nt w i th the f

e de r a l pol i c y of

auni f orm , na t i ona l a nd de r e gul a t oryf r a m e w ork” of

the C o m m u n ic a tio n s A c t. I d . a t 6 4 6 7 ¶ 3 5 . “W h e n ac o u rt r e v ie w s a n a g e n c y ’s c o n s tru c tio n o f th e s ta tu te w h ic h it adm i ni st er s, i ti s c on fr on t ed w i th tw o q uest i on s. ” C hevron U . S . A . , 46 7 U . S . at 8 4 2

– 4 3 , 1 0 4 S . C t. a t 2 7 8 1 . F ir s t, w e c o n s id e r“w h e th e rC o n g r e s s h a s d ir e c tly s poke n t o the pr e c i s e que s t i on a ti s s ue . I f the i nt e ntof

C ongr e s s i s c l e a r , . . . the court , as w el l as the agency, m ustgi ve ef fe ctt o the un am bi gu ou sl y e xp re ss ed i nt e ntof C ongr e s s . ” I d. T o de t e rm i ne i f “ C ongr e s s ha s di r e c t l ys poke n t o the p r e c is e q u e s tio n a t is s u e ,” id ., c o u rts in te rp r e t th e la n g u a g e o f th e s ta tu te a n d ap p ly tr a d i t i o n a l c a n n o n s o f

s t a tu t o ry c o n s tru c t i o n , s e e M CI Te l e c o mms . Co rp . , 5 1 2 U . S. a t 2 2 9 , 1 1 4 S . C t. a t 2 2 3 1 . “ T he construct i on pu ton a s t atut e by the agency c h a r g e d w ith a d m in is te r in g it is e n title d to d e f e r e n c e b yth e c o u rts , a n d o r d in a r ily th a t c o n s tru c tio n w ill b e a f f irm e d if it h a s ar e a s o n ab le b a s is in la w [ , b ]u t th e c o u rts a r e the f i na l author i t i e s on i s s ue s of s t a tut oryc ons truc t i on. ” S E C v. S l oa n, 436 U . S . 103, 118, 98 S . C t . 1701, 1712 ( 1978) ( i nt e rna l c i t a t i ons a nd quot a t i ons om i tt e d) ; s e e a l s o C he vr on U . S . A . , 467 U . S . a t842–43, 104 S . C t . a t2781–82.32

S e c o n d , “if

th e s ta tu te is s ile n t o ra m b ig u o u s w ith r e s p e c t to th e s p e c if ic i s s ue , the que s t i on f

orthe c ourti s w he the rthe a ge nc y ’ s a ns w e ri s ba s e d on a p e rmi s s i b l e c o n s tru c t i o n o f th e s t a tu t e . ” Ch e v r o n U . S. A . , 4 3 7 U . S. a t8 4 3 , 1 0 4 S. C t. a t 2 7 8 2 ( e m p h a s is a d d e d ) . T o d e te rm in e w h e th e rate rm w ith in as ta tu te is a mb i g u o u s , w e c o n s i d e rth e c o n t e x ti n w h i c h th e t e rm i s u s e d . Se e M CI T e l e c om m s . C orp. , 512 U . S . a t226, 114 S . C t . a t2229 ( e xpl a i ni ng tha tC he vr on defe re nce app l i ed because “ cont extual i nd i ca t i on s” cr ea t ed am bi gu i ty i n the t erm

“ m od i fy ”) . T he i nt erpret at i on of an am bi gu ou s s t atut e by an adm i ni stra t i ve agency is “g iv e n c o n tr o llin g w e ig h t u n le s s [ it is ] a rb itr a ry , c ap r ic io u s , o rm a n if e s tly contraryt o the st atut e. ” I d. at84 3– 44 , 10 4 S . C t . at27 82 . “ U nexp l ai ned i nc ons i s t e nc y i s . . . ar e a s on f orhol di ng a n i nt e rpr e t a t i on t o be a n a rbi tr a rya nd c apr i c i ous c ha nge f

r om a ge nc y pr a c t i c e . ” N a t ’ l C abl e & T e l e c om m s . A s s ’ n v. B r a n d X I n te rn e t S e rv s ., ___U .S . ___ , 1 2 5 S . C t. 2 6 8 8 , 2 6 9 9 ( J u n e 2 7 , 2 0 0 5 ) . T he C om m i ss i on prem i se d the preemp t i on of st at e r egul at i on of l i ne i t em bi l l i ng on the l a ngua ge of s e c t i on 332( c ) ( 3) ( A ) . T ha tpr ovi s i on s t a t e s tha t“ no S t a t e orl oc a l gove rnm e nts ha l l ha ve a nyauthor i tyt o r e gul a t e the e ntryof orthe r a te s c h a r g e d b y a n y c o m m e r c ia l m o b ile s e rv ic e , e x c e p t th a t th is p a r a g r ap h s h a ll no tproh i bi ta S t at e f

rom re gu l at i ng the other t erm s and cond i t i on s of c om m er ci al m ob i l e s ervi ce s. ” 47 U . S . C . § 3 32 (c )( 3)(A ). T he C om m i ss i on foun d that33

“ C ongr e s s di d nots pe c i f i c a l l y de f i ne ‘ r a t e s , ’ ‘ e ntry , ’ orothe rke yt e rm s i n s e c t i on 3 3 2 ( c ) ( 3 ) ( A ) ,” b u t e x p la in e d th a t “r a te r e g u la tio n e x te n d s to r e g u la tio n o f ‘r a te l e ve l s a nd ‘ r a t e s truc tur e s ’ f or ” w i r e l e s s s e rvi c e pr ovi de r s . S e c ond R e porta nd O r d e r , 2 0 F. C. C. R. a t6 4 6 2

– 6 3 ¶ 3 0 ( c i t i n g Sw . Be l l M o b i l e Sy s . , I n c . , 1 4 F. C. C. R. 19, 898, 19, 906–07 ¶¶ 18–20(1999) ) . T he C om m i s s i on r e a s one d tha tthe “ type of st at e r egul at i on s i n q uest i on re veal s thatm any di re ct l y a ff ec t[w i re l es s s ervi ce prov i ders ’ ] ra t es and rat e s tructures i n a m anner thatam ou nt s t o rat e r egul at i on . ” I d. a t6463 ¶ 31. W e di s a gr e e w i th thi s r e a s oni ng. T h e la n g u a g e o f

s e c tio n 3 3 2 ( c ) ( 3 ) ( A ) u n a m b ig u o u s lyp r e s e rv e d th e ab ility of the S t a t e s t o r e gul a t e the us e of l i ne i t e m s i n c e l l ul a rw i r e l e s s bi l l s . A l though the t e rm “ r a t e s c ha r ge d” i s notde f i ne d i n the C om m uni c a t i ons A c t , the m e a ni ng of thi s t erm i s c l ear i n thi s c on t ext . A stra i gh t forw ar d rea di ng of the com pl em ent ary p h r a s e s “r e g u la te e n try o f o rth e r a te s c h a r g e d ” a n d “o th e rte rm s a n d c o n d itio n s ,” 4 7 U . S . C . § 3 3 2 (c)(3 )(A ), ev i d en ces th e “ cl ear an d m an i festp u rp o se o f C o n g ress” to le a v e th e r e g u la tio n o f lin e ite m s to th e s ta te s , C lif f , 3 6 3 F .3 d a t 1 1 2 2 . A “ ra t e, ” a s def

i ned b y the O xford E ng l i sh D i ct i on ary, i s “ [t ] he am ou ntof a c ha r ge orpa y m e nt. . . ha vi ng r e l a t i on t o s om e othe ra m ountorba s i s of ca l cul at i on . ” O xford E ng l i sh D i ct i on ary ( 2d ed. 19 89 ). O ther di ct i on ar i es defi ne a

“ ra t e” as “ [a ] n am ou ntpai d o r c harged for a good or se rvi ce , ” B l ac k’ s L aw34

D i ct i on ary 126 8 (7th ed. 19 99 ), or “ a c harge per uni tof a pub l i c- se rvi ce c o mmo d i ty , ” M e rr i a m- W e b s t e rO n l i n e D i c t i o n a ry , a v a i l ab l e a tw w w . mw . c om / c gi - bi n/ di c t i ona ry ( l a s tvi s i t e d J une 27, 2006) . “ [ A ] s aba s i c rul e of s ta tu to ry in te rp r e ta tio n , w e r e a d th e s ta tu te u s in g th e n o rm a l m e a n in g s o f its w ords. ” H ort on H om es , Inc. v. U ni t ed S t at es , 35 7 F . 3d 12 09 , 12 11 (11th C i r. 2 0 0 4 ) ( q u o tin g C o n s o l. B a n k , N .A . v . D e p ’t o f T r e a s . 1 1 8 F .3 d 1 4 6 1 , 1 4 6 3 ( 1 1 th C i r. 19 97 )) . “ In the abse nce of an i nd i ca t i on t o the contrary , w ords i n a st atut e are a s s um e d t o be a rthe i r‘ or di na ry , c ont e m por a ry , c om m on m e a ni ng. ’ ” W a l t e r s v. M e tr o. E d. E nt e r s . , I nc . , 519 U . S . 202, 207, 117 S . C t . 660, 664 ( 1997) ( quot i ng P i one e rI nv. S e rvs . C o. v. B runs w i c k A s s oc s . L t d. P ’ s hi p, 507 U . S . 380, 388, 113 S . C t . 14 89 , 14 94 (199 3)). T he pr ohi bi t i on orr e qui r e m e ntof al i ne i t e m a f

f e c t s the pr e s e nt a t i on of

the c ha r ge on the us e r ’ s bi l l , buti tdoe s nota f f e c tthe a m ounttha taus e ri s c ha r ge d f or se rvi ce . S t at e r egul at i on s of l i ne i t em s r egul at e the bi l l i ng prac t i ce s of c el l ul ar w i r e l e s s pr ovi de r s , notthe c ha r ge s tha ta r e i m pos e d on the c ons um e r . B e c aus e the pres ent at i on of l i ne i t em s on a bi l l i s nota “ char ge or paym ent ” f or se rvi ce , O xford E ngl i s h D i c t i ona ry ( 2d e d. 1989) , i ti s a n “ othe rt e rm orc ondi t i on” r e gul abl e by th e s ta te s , 4 7 U .S .C . § 3 3 2 ( c ) ( 3 ) ( A ) . T h e C o m m is s io n a r g u e s th a t th e S e c o n d R e p o rt a n d O r d e ris c o n s is te n t w ith35

its p r e v io u s d e c is io n s b e c au s e th e p r o h ib itio n o rr e q u ir e m e n t o f lin e ite m s “d ir e c tly af fe ct [s ] [w i re l es s s ervi ce prov i ders ’ ] ra t es and rat e s tructures i n a m anner that am ou nt s t o rat e r egul at i on . ” S e c o n d R e p o rt a n d O r d e r , 2 0 F .C .C .R . a t 6 4 6 3 ¶ 3 1 . A c c or di ng t o the C om m i s s i on, s e c t i on 332( c ) ( 3) ( A ) pr ohi bi t s the s t a t e r e gul a t i on of “ r a t e s truc tur e s ” a nd “ r a t e l e ve l s . ” I d. a t6462–63 ¶ 30. T he C om m i s s i on c ont e nds tha ts t a t e r e gul a t i on of the us e of

l i ne i t e m s “ di r e c t l yi ntrude s upon the carr i er ’ s abi l i ty t o setra t es and est abl i sh ra t e s tructures for [ w i re l es s] se rvi ce . ” T h i s arg u m en tfai l s. I n the S e c ond R e porta nd O r de r , the C om m i s s i on f a i l e d t o f ol l ow the c o m m o n d e f

in itio n o f “r a te s ” e m p lo y e d in its p r e v io u s d e c is io n s . T he C om m i s s i on ha s s t a t e d tha t“ ‘ r a t e ’ i s de f i ne d i n the di c t i ona rya s a n ‘ a m ountof pa y m e ntorc ha r ge ba s e d on s om e othe ra m ount . ’ ” S w . B e l l M obi l e S y s . , I nc . , 14 F . C . C . R . at19 , 90 1 ¶ 19 . T he C om m i ss i on has a l so rul ed thatthe ph ra se “ ra t es ch arg ed ” “ ‘ p ro h i b i t [s] st at es fro m p rescri b i n g , sett i n g o r fi x i n g rat es’ o f w i rel ess s e rvi c e pr ovi de r s . ” C e l l ul a rT e l e c om m s . I ndus . A s s ’ n v. F C C , 168 F . 3d 1332, 1336 ( D . C . C i r . 1999) ( quot i ng P i tt e nc r i e f f C om m c ’ ns . , I nc . , 13 F . C . C . R . 1735, 1 7 4 5 ¶ 2 0 ( 1 9 9 7 ) ) . U nt i l no w , the C om m i ss i on has c on si st ent l y app l i ed the di st i nct i on betw ee n “r a te s ” a n d “o th e rte rm s a n d c o n d itio n s ” to in te rp r e t w h e th e rar e g u la tio n a m o u n ts36

to r a te r e g u la tio n u n d e rs e c tio n 3 3 2 ( c ) ( 3 ) ( A ) . 4 7 U .S .C . § 3 2 2 ( c ) ( 3 ) ( A ) . T he C om m i ss i on has c on cl ud ed thatthe st at es m ayno tre gu l at e the m etho d b y w hi ch w i re l es s s ervi ce prov i ders ca l cul at e the l ength o f aca l l because i taf fe ct s “ w hi ch s e rv ic e s to c h a r g e f

o ra n d h o w m u c h to c h a r g e f o rth e s e s e rv ic e s .” S w . B e ll M obi l e S y s . , I nc . , 14 F . C . C . R . a t19, 898 ¶ 1. C ons i s t e ntw i th the di s t i nc t i on of

“ ra t es ” and “ other t erm s and cond i t i on s, ” the C om m i ss i on has perm i tt ed the st at es t o requi re w i re l es s s ervi ce prov i ders “ t o con tri bu t e t o st at e uni vers al se rvi ce m ec hani sm s. ” P i tt encr i ef f, 13 F . C . C . R . at17 41 ¶ 1 3. A un i vers al se rvi ce m e c ha ni s m i s ac har ge i m pos e d bys t a t e orf e de r a l l a w on pr ovi de r s of t e l e phone s e rv ic e “to m a k e c o m m u n ic a tio n s s e rv ic e s a v a ilab le to a ll A m e r ic a n s a t a f f o r d ab le r a t e s . ” C e l l ul a rT e l e c om m s . I ndus . A s s ’ n, 168 F . 3d a t1334. E ve n though uni ve r s a l s e rvi c e c ha r ge s ha ve a n “ i m pa c ton the r a t e s c ha r ge d” t o c ons um e r s , the C o m m is s io n c o n c lu d e d th a t “u n iv e r s a l s e rv ic e c o n tr ib u tio n r e q u ir e m e n t is n o t, w i thi n the pl a i n m e a ni ng of the s t a tut e , ar a t e ore ntryr e gul a t i on. ” P i tt e nc r i e f f , 13 F . C . C . R . a t1742 ¶¶ 15, 16. B oth de c i s i ons bythe C om m i s s i on f ol l ow the defi ni t i on of “ ra t es ” i n the di ct i on ary a s a“ char ge or a payment. ” T he C om m i s s i on, by c ontr a s t , ha s de f i ne d al i ne i t e m on abi l l a s s om e thi ng f orw hi c h “ ac ons um e rr e c e i ve s no t a ngi bl e pr oduc t . ” F i r s tR e porta nd O r de r , 14 F . C . C . R . a t7531 ¶ 61 . A c c or di ng t o the de f i ni t i ons e s pous e d bythe C om m i s s i on,37

alin e ite m is n o t ar a te b e c au s e “lin e - ite m c h a r g e s c a n n o t b e a ttr ib u te d to i ndi vi dua l t a ngi bl e a rt i c l e s of c om m e r c e , ” i d. a t7531 ¶ 61, but“ a‘ r a t e ’ ha s no s ig n if ic a n c e w ith o u t th e e le m e n t o f s e rv ic e f o rw h ic h it ap p lie s ,” S w . B e ll M o b ile S y s ., I n c ., 1 4 F .C .C .R . a t 1 9 ,9 0 1 ¶ 1 9 . T h e C o m m is s io n a s s e rts th a t th e s ta te r e gul a t i on of

l i ne i t e m s a f

f e c t s “ r a t e s truc tur e s , ” butthe s e r e gul a t i ons do not r e q u ir e ac a rr ie rto r e c o v e rn o rp r o h ib it ac a rr ie rf r o m r e c o v e r in g ap a rtic u la rc o s t. T h e s e r e g u la tio n s p e rta in o n lyto th e p r e s e n ta tio n o f th a t c o s t o n c u s to m e rb ills . T he C om m i s s i on a l s o f

a i l e d a de qua t e l yt o e xpl a i n i t s c onc l us i on tha tal i ne i t em fa l l s w i thi n the defi ni t i on of “ ra t es ” bec ause the use of l i ne i t em s has an a l l e ge d di r e c te f

f e c ton r a t e s . I n the S e c ond R e porta nd O r de r , the C om m i s s i on e x p la in e d th a t “r e q u ir in g o rp r o h ib itin g th e u s e o f lin e ite m s ” h a s a“d ir e c t e f f e c t” o n th e ab ilityo f

w ir e le s s s e rv ic e p r o v id e r s to s tru c tu r e r a te s , b u t o th e rs ta te re gu l at i on s have an “ i nd i re ctef fe ct. . . on a c om pany’ s behavi or. ” S ec on d R eport and O rder , 20 F . C . C . R . at64 66 ¶ 3 4 (qu ot i ng W i re l es s C on sum er s A l l i ance O rder , 15 F . C . C . R . 17 , 02 1, 17 , 03 4 ¶ 23 (200 0)). T he C om m i ss i on re qu es t ed further c o m m e n ts b e c au s e it “r e c o g n iz e [ s ] th a t th e lin e b e tw e e n p r o h ib ite d a n d p e rm is s ib le s t a t e r e gul a t i ons of

l i ne i t e m s m a ynota l w a y s be c l e a r . ” I d. ( i nt e rna l quot a t i ons a nd c i t a t i ons om i tt e d) . T he a tt e m ptby the C om m i s s i on t o di s t i ngui s h the re gu l at i on of l i ne i t em s on cel l ul arw i re l es s bi l l s f rom the i m po si t i on of un i vers al38

s e rvi c e c ha r ge s i s una va i l i ng. T ha tthe pr ohi bi t i on orr e qui r e m e ntof al i ne i t e m ha s s om e e f f e c ton the c ha r ge t o the c ons um e rdoe s notne c e s s a r i l ypl a c e ar e gul a t i on w i thi n the m e a ni ng of “ ra t es ” and ou t si de the am bi tof st at e r egul at i on of “ other t erm s and cond i t i on s. ” T h e C o m m is s io n a r g u e s th a t r a te r e g u la tio n in c lu d e s th e r e g u la tio n o f “r a te structures ” and “ ra t e l evel s, ” i d. at64 63 ¶ 3 1, bu tra t e l evel s and ra t e s tructures ar e st i l l co m p o n en t s o f “ rat es. ” T h e i n cl u si o n o f th e sp eci fi c co m p o n en t s “ rat e l ev el s” or“ r a t e s truc tur e s ” w i thi n the ge ne r a l t e rm “ r a t e s ” doe s notm a gi c a l l ye xpa nd the au th o r ityo f

th e C o m m is s io n b e y o n d w h a t th e s ta tu to ryla n g u a g e a llo w s . Th e Co mmi s s i o n h a s d i s a v o w e d th e a r g u me n tth a tar e g u l a t i o n w i th s o me e f f e c ton pr i c e s i s pe rs e r a t e r e gul a t i on unde rs e c t i on 322( c ) ( 3) ( A ) . T he C om m i ss i on , for e xam pl e, has uph el d st at e r egul at i on s thatre qu i re w i re l es s s ervi ce pr ovi de r s t o c ontr i but e t o the s t a t e - w i de uni ve r s a l s e rvi c e f und a s a n “ othe rt e rm or cond i t i on . ” P i tt encr i ef

f, 13 F . C . C . R . at17 42 ¶¶ 42 –4 3, af f’ d sub no m . C el l ul ar T el ec om m s. Indu s. A ss ’ n, 16 8 F . 3d at13 32 . T he C om m i ss i on , i n P i tt encr i ef f, expres sl y r ej ec t ed the ar gu m entthatthe i m po si t i on of a uni vers al se rvi ce fe e w as ra t e r egul at i on because i t“ i m pact s the ra t es thata [ w i re l es s s ervi ce ] prov i der c ha r ge s i t s c us t om e r s . ” I d. a t1745 ¶ 20. T he C om m i s s i on s t a t e d, “ T he C om m i s s i on ha s f

ound the ‘ r a t e s c ha r ge d by ’ l a ngua ge t o pr ohi bi ts t a t e s f r om39

pr e s c r i bi ng, s e tt i ng, orf i xi ng r a t e s of

[ w i r e l e s s s e rvi c e ] pr ovi de r s . W e ha ve not foun d, ho w ever , thati tpree m pt s s t at e autho ri ty over m att er s w hi ch m ayhave an i m pa c ton the c os t s of

doi ng bus i ne s s f

ora[ w i r e l e s s s e rvi c e ] ope r a t or . ” I d. ( f ootnot e s om i tt e d) . “ T o e qua t e s t a t e a c t i on tha tm a yi nc r e a s e the c os tof doi ng b u s in e s s w ith r a te r e g u la tio n w o u ld . . . f o rb id n e a r lya ll f

o rm s o f s ta te r e g u la tio n , a re sul tatod ds w i th the ‘ other t erm s and cond i t i on s’ po rt i on of the fi rs tse nt ence . ” C e l l ul a rT e l e c om m s . I ndus . A s s ’ n, 168 F . 3d a t1336, a f f’ g P i tt e nc r i e f

f , 13 F .C .C .R . 1 7 3 5 . I f

th e im p o s itio n o f

au n iv e r s a l s e rv ic e c h a r g e h a s a n “in d ir e c t” r e l a t i ons hi p w i th r a t e s tha tpl a c e s i tw i thi n the purvi e w of “ othe rt e rm s a nd cond i t i on s, ” then requi ri ng or proh i bi t i ng the use of l i ne i t em s has an even m ore a tte n u a te d r e la tio n s h ip w ith r a te s . W e can d i scern n o l o g i cal d i st i n ct i o n b etw een w h atth e C o m m i ssi o n t erm s a

“ di re ctef

fe ct ” c ause d b y the re gu l at i on of l i ne i t em s and the al l eged “ i nd i re ct e f f e c t ” c aus e d by the i m pos i t i on of uni ve r s a l s e rvi c e c ha r ge s . S e c ond R e porta nd O r de r , 20 F . C . C . R . a t6466 ¶ 34. T he C om m i s s i on f a i l s t o e xpl a i n w hythe im p o s itio n o f

u n iv e r s a l s e rv ic e c h a r g e s , w h ic h in c r e a s e s th e a m o u n t ac o n s u m e ris c ha r ge d, i s m or e a tt e nua t e d t o the a m ountac ons um e rpa y s f ors e rvi c e tha n the r e gul a t i on of

l i ne i t e m s , w hi c h a f

f e c t s the pr e s e nt a t i on of

m a tt e r s on abi l l . T he C o m m i s s i o n i s u n ab l e t o a rt i c u l a t e al o g i c a l d i s t i n c t i o n b e twe e n th e s e two40

o u tc o m e s . T h e C o m m is s io n a ls o c o n te n d s th a t th e S e c o n d R e p o rt a n d O r d e r“is c o n s is te n t w ith p r io rC o m m is s io n s ta te m e n ts e q u a tin g ‘lin e ite m s ’ w ith ‘r a te el em ent s. ’ ” S ec on d R eportand O rder , 20 F . C . C . R . at64 63 ¶ 3 0 & n. 83 . In s u p p o rt o f

th is a r g u m e n t, th e C o m m is s io n r e lie s o n its d e c is io n in F e d e r a l- S ta te J oi ntB oa r d of

U ni ve r s a l S e rvi c e , 17 F . C . C . R . 24, 952 ( 2002) . I n tha tde c i s i on, the C o m m is s io n ru le d th a t in c u m b e n t lo c a l e x c h a n g e c a rr ie r s m ay“r e c o v e rth e ir f e de r a l uni ve r s a l s e rvi c e c ontr i but i ons c os t s thr ough as e pa r a t e l i ne i t e m ” a s l ong a s c a rr i e r s do not“ i nc l ude [ ] am a rk- up above the r e l e va ntc ontr i but i on f a c t or . ” I d. a t 2 4 ,9 7 0 ¶ 3 1 . T hi s argum entfa i l s f

or atl ea sttw o rea sons. F i rs t , F eder al -S t at e J oi ntB oard i s i napp osi t e bec ause the autho ri ty of the C om m i ss i on t o regul at e f eder al un i vers al s e rvi c e c ontr i but i on de r i ve s f r om s e c t i on 254( d) of

the C om m uni c a t i ons A c t , not se ct i on 33 2(c) (3)( A ). T he deci si on i n F eder al -S t at e J oi ntB oard do es no tgo vern w he the rthe r e gul a t i on of l i ne i t e m s bythe s t a t e s i s pr e e m pt e d unde rs e c t i on 3 3 2 ( c ) ( 3 ) ( A ) . C o m p a r e 4 7 U .S .C . § 2 5 4 ( d ) ( g r a n tin g th e C o m m is s io n au th o r ityto i m pos e f e de r a l uni ve r s a l s e rvi c e c ha r ge s ) , w i th i d. § 332( c ) ( 3) ( A ) ( gr a nt i ng the C om m i s s i on author i ty t o r e gul a t e “ e ntry ” a nd “ r a t e s ” ) . S e c ond, a l though the C om m i ss i on st at ed i n F eder al -S t at e J oi ntB oard thata f eder al un i vers al se rvi ce41

contri bu t i on i s a“ ra t e e l em ent ” w hi ch m aybe re covered throu gh a l i ne i t em , i d. at 24 , 97 9 ¶ 53 n. 13 3, the C om m i ss i on di d n otequat e the i m po si t i on of the un i vers al s e rvi c e c ontr i but i on w i th the pr e s e nt a t i on of the uni ve r s a l s e rvi c e c ontr i but i on on th e b ill. F e d e r a l- S ta te J o in t B o a r d d o e s n o t e q u a te “lin e ite m s ” w ith “r a te el em ent s. ” I n the S e c ond R e porta nd O r de r , the C om m i s s i on a l s o m i s c ons true d the l e gi s l a t i ve hi s t ory of

s e c t i on 332( c ) ( 3) ( A ) . S e e S e c ond R e porta nd O r de r , 20 F . C . C . R . a t6464 ¶ 32. T he H ous e C om m i tt e e R e portr e ga r di ng s e c t i on 33 2(c) (3)( A ) e xp l ai ned that“ other t erm s and cond i t i on s” of w i re l es s s ervi ce , w hi c h a r e r e gul a t e d by the s t a t e s , “ i nc l ude s uc h m a tt e r s a s c us t om e rbi l l i ng i nf orm a t i on a nd pr a c t i c e s a nd bi l l i ng di s put e s a nd othe rc ons um e rpr ot e c t i on m a tt e r s . ” H. R . R e p . No . 1 0 3 - 1 1 1 , a t2 1 1 ( 1 9 9 3 ) , r e p r i n t e d i n 1 9 9 3 U. S . C . C . A. N. 37 8, 58 8. B ec ause “ ou r s ol e c on ce rn i s the i nt entof C on gres s . . . , i ti s nec es sary t o l oo k t o the adm i ni stra t i ve and l egi sl at i ve backgrou nd of the enactm ent . ” U ni t ed S t a t e s v. Z a c ks , 375 U . S . 59, 62, 84 S . C t . 178, 180 ( 1963) . C ontr a ryt o the ar gu m entof the C om m i ss i on , the l egi sl at i ve hi st ory s ho w s thatC on gres s i nt ended t o l eav e th e au th o ri ty t o reg u l at e l i n e i t em s w i th th e st at es. T he C om m i ss i on di sm i ss es thi s s t at em entfr om the l egi sl at i ve hi st ory a s unpe r s ua s i ve be c aus e i t“ now he r e s ugge s t s tha ts t a t e s m a yr e gul a t e r a t e s i n the42

gui s e of r e gul a t i ng bi l l i ng pr a c t i c e s . ” T he C om m i s s i on e xpl a i ns tha ta l though “ not al l re gu l at i on re l at i ng t o a carr i er ’ s bi l l i ng and i t s r el at i on shi p w i th cust om er s r e p r e s e n ts p r e e m p te d ‘r a te r e g u la tio n ,’” s ta te r e g u la tio n s th a t r e q u ir e o rp r o h ib it l i ne i t e m s a r e r e gul a t i on. S e c ond R e porta nd O r de r , 20 F . C . C . R . a t6464 ¶ 33. T he Co mmi s s i o n c o u n s e l s th a tw e s h o u l d l o o kt o th e “ s u b s t an c e , n o tme r e l yth e f o rm” of the r e gul a t i on t o de t e rm i ne i f i tha s adi r e c te f

f e c ton r a t e s . I d. a t6466 ¶ 34 ( q u o tin g W ir e le s s C o n s u m e r s A llia n c e O r d e r , 1 5 F .C .C .R . a t 1 7 ,0 3 7 ¶ 2 8 ) . T hi s argum enti s f

l aw ed for a tl ea sttw o rea sons. F i rs t , the S ec on d R eport a n d O r d e rb e lie s th e c o n te n tio n b yth e C o m m is s io n th a t lin e ite m s a r e n o t a

“ bi l l i ng pr a c t i c e . ” I n the O r de r , the C om m i s s i on e xpr e s s l yc l a s s i f i e s the us e of

l i ne i t em s a s a“ bi l l i ng prac t i ce . ” I d. S ec on d, al tho ug h w e a gree thatthe “ subst ance , notm e r e l y the f

orm ” of ar e gul a t i on gove rns w he the ri ti s r a t e r e gul a t i on, i d. , the C om m i ss i on do es no tart i cul at e the “ subst ance ” thatdi st i ng ui shes w hether a r e g u la tio n o f

lin e ite m s is ab illin g p r a c tic e o rr a te r e g u la tio n . T he pr ohi bi t i on or r e qui r e m e ntof

the us e of

l i ne i t e m s on w i r e l e s s bi l l s i nvol ve s “ bi l l i ng i nf orm a t i on and p ra ct i ce , ” not“ ra t es . ” T he i nt e rpr e t a t i on of

the t e rm “ r a t e s ” ur ge d bythe C om m i s s i on de pr i ve s the c o m p le m e n ta ryp h r a s e “o th e rte rm s a n d c o n d itio n s ” o f a ll m e a n in g . 4 7 U .S .C . § 3 3 2 ( c ) ( 3 ) ( A ) . “I t is ac a r d in a l p r in c ip le o f s ta tu to ryc o n s tru c tio n th a t as ta tu te43

ou gh t , up on the w ho l e, t o b e s o con strued that , i f i tcan b e pre vent ed, no cl ause , s e nt e nc e , orw or d s ha l l be s upe r f l uous , voi d, ori ns i gni f

i c a nt . ” T R W I nc . v. A ndr e w s , 534 U . S . 19, 31, 122 S . C t . 441, 449 ( 2001) . I f the pr e s e nt a t i on of

l i ne i t e m s on c ons um e rbi l l s w e r e am a tt e rof “ r a t e s ” a nd nota n “ othe rt e rm [ ] or c ondi t i on[ ] ” of

w i r e l e s s s e rvi c e , the n the C om m i s s i on w oul d be f r e e t o pr e e m pt vi rtua l l y a ny f

orm of s t a t e r e gul a t i on of

w i r e l e s s s e rvi c e , i nc l udi ng l a w s r e ga r di ng di s c l os ur e a nd c ons um e rpr ot e c t i on. 47 U . S . C . § 332( c ) ( 3) ( A ) . U nde rthe i n t erp ret at i o n o f th e C o m m i ssi o n , ev en p o w ers h i st o ri cal l y ret ai n ed b y th e st at es, such as the i m po si t i on of st at e t axes , w ou l d b e pre em pt ed so l on g as they i m pact

“ how c a rr i e r s r e c ove r[ the ] c os t s of doi ng bus i ne s s . ” C f

. D ow s v. C i tyof

C hi c a go, 78 U . S . (11 W al l . ) 108 , 11 0 (18 71 ) ( “ [T ] he m od es adop t ed t o enforce the t axes l evi ed [by the st at es ] shou l d b e i nt er fe re d w i th as l i tt l e a s possi bl e. ”) . T he fa i l ure of the C om m i s s i on t o de l i ne a t e the pr ope rs c ope of r a t e r e gul a t i on a l l ow s the C om m i s s i on i nde f

i ni t e l y t o e xpa nd i t s author i tyw i thoutr e ga r d t o the m a nda t e by C o n g r e s s th a t “o th e rte rm s a n d c o n d itio n s ” r e m a in th e r e a lm o f s ta te r e g u la tio n . 4 7 U .S .C . § 3 3 2 ( c ) ( 3 ) ( A ) . T he i nt e rpr e t a t i on by the C om m i s s i on tha tthe pr ohi bi t i on orr e qui r e m e ntof l i ne i t e m s i s e xpr e s s l y pr e e m pt e d by the l a ngua ge of s e c t i on 332( c ) ( 3) ( A ) i s not s upport e d by the c om m on de f i ni t i on of “ r a t e s . ” A “ r a t e , ” a s de f i ne d i n the44

di c t i ona ry a nd pr e vi ous de c i s i ons by the C om m i s s i on, i s “ [ t ] he a m ountof ac ha r ge o rp a y m e n t.” O x f

o r d E n g lis h D ic tio n a ry( 2 d e d . 1 9 8 9 ) ; s e e S w . B e ll M o b ile S y s ., I nc . , 14 F . C . C . R . a t19, 901 ¶ 19. B e c aus e the r e gul a t i on of l i ne - i t e m bi l l i ng i s not r a t e r e gul a t i on, the e xpr e s s l a ngua ge of s e c t i on 332( c ) ( 3) ( A ) of the C om m uni c a t i ons A c tdoe s notpr e e m pts t a t e r e gul a t i ons tha tr e qui r e orpr ohi bi tthe u se o f l i n e i t em s o n cel l u l ar w i rel ess b i l l s. I V . CONCL US I ON W e GR AN T the m ot i on t o di s m i s s the pe t i t i on of the V e rm ontB oa r d f

or l ac k o f s ubj ec tm att erj uri sdi ct i on . W e DE NY the m ot i on by the V erm on tB oard t o c orr e c tthe a dm i ni s tr a t i ve r e c or d. W e a l s o DE NY th e m o tio n b yth e C a rr ie r s to d is m is s th e p e titio n o f

th e S ta te C o n s u m e rA d v o c a te s f o rla c ko f

s ta n d in g . B e c aus e the C om m uni c a t i ons A c ta l l ow s the s t a t e s t o r e gul a t e l i ne i t e m bi l l i ng f or w i re l es s s ervi ce s, w e GR AN T the pet i t i on s f or re vi ew fi l ed by the S t at e C on sum er A dvoc a t e s a nd the S t a t e U t i l i ty R e gul a t or s a nd VA C A TE the S e c ond R e porta nd O r d e r .