Court Opinion

ID: 9956510
Source: CourtListenerOpinion
Date Created: 2024-04-02 15:01:00.182596+00
Date Added: 2024-06-11T08:17:35.013097
License: Public Domain

United States Court of Appeals
         FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued December 14, 2023             Decided April 2, 2024

                       No. 23-1032

                  HIKVISION USA, INC.,
                      PETITIONER

                            v.

   FEDERAL COMMUNICATIONS COMMISSION AND UNITED
               STATES OF AMERICA,
                  RESPONDENTS

               MOTOROLA SOLUTIONS, INC.,
                    INTERVENOR

                Consolidated with 23-1073

             On Petitions for Review of an Order
        of the Federal Communications Commission

    Christopher J. Wright and Russell M. Blau argued the
causes for petitioners. With them on the joint briefs were
Andrew D. Lipman, Timothy J. Simeone, John T. Nakahata,
John R. Grimm, Deepika H. Ravi, Annick Banoun, James M.
Cole, and Tobias S. Loss-Eaton.
                               2
     Matthew J. Dunne, Counsel, Federal Communications
Commission, argued the cause for respondents. With him on
the brief were Brian M. Boynton, Principal Deputy Assistant
Attorney General, U.S. Department of Justice, Sharon Swingle
and Casen Ross, Attorneys, Jacob M. Lewis, Deputy General
Counsel, Federal Communications Commission, and Sarah E.
Citrin, Deputy Associate General Counsel.

    Thomas M. Johnson Jr. argued the cause for intervenor in
support of respondents. With him on the brief were Bennett L.
Ross and Michael J. Showalter.

   Before: MILLETT and PAN, Circuit Judges, and
RANDOLPH, Senior Circuit Judge.

    Opinion for the Court filed by Circuit Judge PAN.

     PAN, Circuit Judge: Hikvision USA, Inc. (“Hikvision”)
and Dahua Technology USA Inc. (“Dahua”) (collectively,
“Petitioners”) are two Chinese-owned companies that
manufacture video cameras and video-surveillance equipment.
In March 2021, the Federal Communications Commission
(“FCC”) relied on a congressional finding to place Petitioners’
products on the “Covered List” — a list of communications
equipment that poses a threat to U.S. national security. Later
that year, in November 2021, Congress passed the Secure
Equipment Act (“SEA”), which directed the FCC to no longer
approve any equipment on the Covered List for marketing or
sale within the United States. The FCC issued an order to
implement the equipment ban mandated by the SEA. The ban
applies to Petitioners’ video-surveillance equipment to the
extent that it is used for certain purposes, including “physical
security surveillance of critical infrastructure.”
                               3
     Petitioners challenge the FCC’s implementing Order,
arguing that Petitioners’ products do not belong on the Covered
List and therefore should not be barred from U.S. markets. We
hold that the SEA ratified the composition of the Covered List
and leaves no room for Petitioners to challenge the placement
of their products on that list under a predecessor statute. But
we agree with Petitioners that the FCC’s definition of “critical
infrastructure” is overly broad. We therefore deny the petitions
in part and grant them in part.

                               I.

     Petitioners Hikvision and Dahua are U.S. subsidiaries of
Chinese manufacturers of video equipment. In the United
States, Petitioners’ cameras are used by small- and medium-
sized business owners to secure their premises. Industry
commenters have expressed concern in FCC rulemakings that
Petitioners’ equipment could be utilized by the Chinese
government to spy on sensitive American infrastructure and
could pose other national-security risks.       As a result,
Petitioners’ products have been specifically identified and
addressed by both Congress and the FCC.

                              A.

     In the John S. McCain National Defense Authorization Act
for Fiscal Year 2019 (“NDAA”), Congress prohibited federal
agencies from using or procuring certain “covered” technology
sold by Chinese companies. Pub. L. No. 115-232, § 889, 132
Stat. 1636, 1917–19 (2018). The NDAA specifically targeted
Petitioners’ products for this limited ban from federal
procurement. Section 889(f)(3) of the NDAA defines “covered
telecommunications equipment” to include “video surveillance
and telecommunications equipment produced by Hytera
Communications Corporation, Hangzhou Hikvision Digital
Technology Company, or Dahua Technology Company” that
                                 4
is used “[f]or the purpose of public safety, security of
government facilities, physical security surveillance of critical
infrastructure, and other national security purposes.” Id. at
§ 889(f)(3).     Although the statute specifically names
Petitioners’ parent companies, the NDAA also applies to “any
subsidiary or affiliate of such entities.” Id.

     Congress followed up in March 2020 by passing the
Secure and Trusted Communications Networks Act (“SNA”).
Pub. L. No. 116-124, 134 Stat. 158. The SNA instructed the
FCC to create the Covered List, i.e., to “publish on its website
a list of covered communications equipment or services.” 47
U.S.C. § 1601(a). The SNA also banned the use of FCC
subsidies to purchase any equipment on the Covered List. Id.
§ 1602(a)(1). Equipment is designated as “covered” and “shall
[be] place[d] on the list” if it “poses an unacceptable risk to the
national security of the United States or the security and safety
of United States persons.” Id. § 1601(b)(1).1 Section 1601(c)
of the SNA requires the FCC to rely on four types of national-
security determinations to place products on the Covered List.
One of those determinations is the definition of “covered
telecommunications equipment” under the NDAA.                   Id.
§ 1601(c)(3) (The Commission “shall place on the list” any
equipment that “poses an unacceptable risk to national security
. . . based solely on” such equipment “being covered
telecommunications equipment or services, as defined in

1
     The equipment also must be “capable of” certain functions,
including “routing or redirecting user data traffic or permitting
visibility into any user data or packets,” “causing the network of a
provider of advanced communications service to be disrupted
remotely,” or “otherwise posing an unacceptable risk to the national
security of the United States or the security and safety of United
States persons.” 47 U.S.C. § 1601(b)(2).
                                5
section 889(f)(3) of the [NDAA].”).2 The SNA requires the
FCC to periodically update the Covered List, and specifically
contemplates that communications equipment or services may
be added or removed from the list. Id. § 1601(d); 47 C.F.R.
§§ 1.50002, 1.50003 (implementing SNA).

     In December 2020, the FCC began implementing the
requirements of the SNA by issuing the Supply Chain Second
Order. That Order established procedures and criteria for
compiling the Covered List, including a “requirement to accept
determinations” of national-security risk by certain sources.
Protecting Against National Security Threats to the
Communications Supply Chain Through FCC Programs, WC
Docket No. 18-89, Second Report and Order (Supply Chain
Second Order), 35 FCC Rcd. 14284, paras. 13, 58–71 (2020).
One mandatory source was the section of the NDAA in which
Congress determined that Petitioners’ equipment posed
national-security risks when used for listed purposes. Supply
Chain Second Order, at paras. 66–71.

    On March 12, 2021, the FCC officially published the
Covered List, which included Petitioners’ “[v]ideo surveillance
and telecommunications equipment.” Public Safety and
Homeland Security Bureau Announces Publication of the List
of Equipment and Services Covered by Section 2 of the Secure

2
      The other qualifying determinations include: (i) “A specific
determination made by any executive branch interagency body with
appropriate national security expertise, including the Federal
Acquisition Security Council established under section 1322(a) of
title 41”; (ii) “A specific determination made by the Department of
Commerce pursuant to Executive Order No. 13873 (84 Fed. Reg.
22689; relating to securing the information and communications
technology and services supply chain)”; and (iii) “A specific
determination made by an appropriate national security agency.” 47
U.S.C. §§ 1601(c)(1)–(2), (4).
                                6
Networks Act, WC Docket No. 18-89, Public Notice, DA 21-
309 (PSHSB, Mar. 12, 2021). In keeping with the statutory
text of the NDAA, the Covered List included Petitioners’
technology only “to the extent it [was] used for the purpose of
public safety, security of government facilities, physical
security surveillance of critical infrastructure, and other
national security purposes.” Id. As a result of Petitioners’
inclusion on the Covered List, federal subsidies administered
by the FCC could no longer be used to purchase Petitioners’
products for listed purposes. See 47 U.S.C. § 1602(a)(1);
Supply Chain Second Order, at para. 94.

                               B.

     Under the Communications Act, the FCC is authorized to
regulate devices that emit radiofrequency energy that could
interfere with radio communications. 47 U.S.C. § 302a(a). In
carrying out its regulatory responsibilities, the FCC has utilized
an equipment-authorization program to ensure that
radiofrequency-emitting devices comply with the FCC’s
requirements before they can be marketed in or imported into
the United States. See 47 C.F.R. Part 2 Subpart I, § 2.801 et
seq. (Marketing of Radio Frequency Devices); 47 C.F.R. Part
2 Subpart J, § 2.901 et seq. (Equipment Authorization
Procedures); 47 C.F.R. Part 2 Subpart K, § 2.1201 et seq.
(Importation of Devices Capable of Causing Harmful
Interference).

     In June 2021, the FCC issued a Notice of Proposed
Rulemaking (“NPRM”) that proposed banning the
authorization of equipment on the Covered List. In the NPRM,
the Commission sought comments on “various steps that [it]
could take in its equipment authorization program . . . to reduce
threats posed to our nation’s communications system.” J.A. 37.
The FCC contemplated revising the equipment-authorization
                              7
rules to “prohibit authorization of any ‘covered’ equipment on
the Covered List.” Id. Petitioners were named on the first page
of the NPRM’s “Discussion” section as companies to whom
the proposed ban would apply in some degree. After the
NPRM’s issuance, the FCC received a host of comments, some
of which expressed uncertainty about whether the Secure
Networks Act, the Communications Act, or any other statute
empowered the FCC to ban equipment authorizations due to
national-security concerns. Petitioners filed comments arguing
that the FCC lacked statutory authority to promulgate the
proposed rule.

     Five months later, in November 2021, Congress passed the
Secure Equipment Act. Pub. L. No. 117-55, 135 Stat. 423. The
SEA directed the Commission to “adopt rules in the proceeding
initiated” in the NPRM and specifically identified the NPRM
by docket number. Id. at § 2(a)(1). In section 2(a)(2) of the
SEA, Congress required the Commission to “no longer review
or approve any application for equipment authorization for
equipment that is on the [Covered List],” i.e., “the list of
covered communications equipment or services published by
the Commission under” the Secure Networks Act. Id. at
§ 2(a)(2). Congress referred to the Covered List without
commenting on its composition or altering its existing scope.
Id.

     A year later, in November 2022, the FCC issued the Order
that Petitioners now challenge. As mandated by Congress in
the SEA, the Order promulgates the rule contemplated by the
NPRM: It bans equipment authorizations for “covered”
equipment. The Order’s ban applies to products on the
Covered      List,    including  video     surveillance    and
telecommunications equipment manufactured by Petitioners
Hikvision and Dahua, to the extent that such equipment is used
for “the purpose of public safety, security of government
                                  8
facilities, physical security surveillance of critical
infrastructure, or other national security purposes.” J.A. 186.
Petitioners’ products will not be authorized for sale in the
United States “until such time as the Commission approves
these entities’ plans and measures . . . to ensure [that] such
equipment will not be marketed and sold” for prohibited
purposes. Id.

     The Order also provides further guidance about when
equipment is used for “physical security surveillance of critical
infrastructure.” In defining “critical infrastructure,” the FCC
cited several sources. First, the Commission “appl[ied] the
meaning” provided by section 1016(e) of the USA PATRIOT
Act of 2001 (“the Patriot Act”), which defines “critical
infrastructure” as “‘systems and assets, whether physical or
virtual, so vital to the United States that the incapacity or
destruction of such systems and assets would have a
debilitating impact on security, national economic security,
national public health or safety, or any combination of those
matters.’” J.A. 210 (quoting 42 U.S.C. § 5195c(e)). Next, the
Commission noted that Presidential Policy Directive 21
(“PPD-21”) identifies sixteen critical infrastructure economic
sectors;3 and that the Cybersecurity and Infrastructure Security
Agency (“CISA”), through the National Risk Management
Center (“NRMC”), has published a set of fifty-five National
Critical Functions to “guide national risk management

3
      The sixteen critical infrastructure sectors identified in PPD-21
are “chemical, commercial facilities, communications, critical
manufacturing, dams, defense industrial base, emergency services,
energy, financial services, food and agriculture, government
facilities, health care and public health, information technology,
nuclear reactors/materials/waste, transportation systems, and
water/waste water systems.” J.A. 210–11.
                                  9
efforts.”4 J.A. 210–11 & nn. 527 & 529 (citing Directive on
Critical Infrastructure Security and Resilience, 1 Pub. Papers
106, 115 (Feb. 12, 2013); National Risk Management Center,
Cybersecurity and Infrastructure Security Agency, National
Critical Functions Status Update to the Critical Infrastructure
Community 2–8 (2020)).

     After observing that the CISA/NRMC guide adopts a
definition of National Critical Functions that is similar to the
Patriot Act’s definition of critical infrastructure, the FCC found
that, for the purposes of implementing the Order, “any systems
or assets, physical or virtual, connected to the sixteen critical
infrastructure sectors identified in PPD-21 or the 55 [National
Critical Functions] identified in [the] CISA/NRMC [risk
management guide] could reasonably be considered ‘critical
infrastructure.’” J.A. 211 (emphasis added). The Order then
notes that the agency will continue to “develop further
clarifications to inform applicants for equipment
authorizations” and provide “more specificity and detail.” Id.

4
      The CISA is a component of the Department of Homeland
Security that seeks to defend against risks to physical and digital
infrastructure. About CISA, CISA, https://perma.cc/KXP5-D5FZ
(last visited Mar. 13, 2024). The NRMC is a center within CISA that
focuses on strategic risk reduction, including initiatives to reduce
risks in 5G technology, election security, pipeline cybersecurity, and
more. National Risk Management Center Fact Sheet, CISA,
https://perma.cc/YP53-E96G (last visited Mar. 13, 2024). The
CISA/NRMC National Critical Functions Set includes activities such
as “provid[ing] cable access network services,” “distribut[ing]
electricity,” “conduct[ing] elections,” “provid[ing] metals and
materials,” and “supply[ing] water.” National Risk Management
Center, Cybersecurity and Infrastructure Security Agency, National
Critical Functions Status Update to the Critical Infrastructure
Community 2–8 (2020) (capitalization altered throughout).
                                10
    Petitioners timely filed their petitions for review of the
November 2022 Order. We have jurisdiction under 28 U.S.C.
§ 2342(1) and 47 U.S.C. § 402(a).

                                II.

     Under the Administrative Procedure Act, a court must set
aside agency action that is arbitrary, capricious, an abuse of
discretion, or otherwise contrary to law. 5 U.S.C. § 706(2)(A).
“In the absence of statutory authorization for its act, an
agency’s action is plainly contrary to law and cannot stand.”
Atlantic City Elec. Co. v. FERC, 295 F.3d 1, 8 (D.C. Cir. 2002)
(cleaned up); see also Ball, Ball & Brosamer, Inc. v. Reich, 24
F.3d 1447, 1450 (D.C. Cir. 1994) (“An agency can neither
adopt regulations contrary to statute, nor exercise powers not
delegated to it by Congress.”).         For an arbitrary-and-
capriciousness challenge, “[a] court simply ensures that the
agency has acted within a zone of reasonableness and, in
particular, has reasonably considered the relevant issues and
reasonably explained the decision.” China Telecom (Ams.)
Corp. v. FCC, 57 F.4th 256, 265 (D.C. Cir. 2022) (alteration in
original) (quoting FCC v. Prometheus Radio Project, 141 S.
Ct. 1150, 1158 (2021)).

                                III.

      The FCC Order at issue bans the authorization of
Petitioners’ products for marketing and sale in the United
States, to the extent that the products are used “for the purpose
of . . . physical security surveillance of critical infrastructure.”
J.A. 209. Petitioners challenge two aspects of the Order. First,
Petitioners argue that the FCC exceeded the scope of its
statutory authority when it placed Petitioners’ equipment on the
Covered List. Second, Petitioners argue that the FCC’s
definition of “critical infrastructure” is overbroad and
inconsistent with the NDAA. We reject Petitioners’ claim that
                               11
their equipment does not belong on the Covered List, but we
agree that the Commission’s definition of critical infrastructure
is too broad.

                               A.

     The FCC’s Order implemented the Secure Equipment Act
of 2021, in which Congress directed the FCC to no longer
“review or approve any application for equipment
authorization for equipment that is on [the Covered List].”
Pub. L. No. 117-55, § 2(a)(2), 135 Stat. 423, 423. Petitioners’
video-surveillance and telecommunications equipment is on
the Covered List — and was on it at the time Congress passed
the SEA — and therefore is subject to the authorization ban.
But Petitioners attempt to dispute the FCC’s prior decision to
place their products on the Covered List, arguing that the FCC
misconstrued the SNA at that earlier point in time. According
to Petitioners, they may make this belated claim because,
during the 2022 rulemaking that led to the promulgation of the
Order, the FCC “[r]eopened” the definition of covered
equipment under the SNA. Reply Br. 5 (citing Alvin Lou
Media, Inc. v. FCC, 571 F.3d 1, 8 (D.C. Cir. 2009)). The
government contends that we lack jurisdiction to review
Petitioners’ untimely claim, which should have been made
within 60 days of the disputed agency action (i.e., the initial
publication of the Covered List). Resp. Br. 38 (citing 28 U.S.C.
§ 2344).

     In our view, Petitioners’ argument does not implicate our
jurisdiction. We have jurisdiction over this case because
Petitioners timely filed petitions for review of the 2022 Order,
contending that the Order’s equipment-authorization ban was
improperly applied to their products. See 28 U.S.C. § 2344.
Our refusal to reach the merits of Petitioners’ SNA argument is
rooted not in jurisdictional concerns, but in our interpretation
                             12
of the SEA: The SEA ratified the composition of the Covered
List at the time of the SEA’s enactment and thus precludes
Petitioners from claiming that their products were improperly
put on the list at an earlier point in time.

     Congress has clearly expressed its view that Petitioners’
products pose a risk to national security in certain
circumstances. It first did so in the NDAA, which prohibited
executive agencies from procuring “video surveillance and
telecommunications equipment produced by [Petitioners]”
when used for certain purposes. Pub. L. No. 115-232, § 889(a),
(f)(3), 132 Stat. 1636, 1917–18 (2018). Less than two years
later, in the SNA, Congress directed the FCC to create a
Covered List of equipment that “pose[s] an unacceptable risk
to the national security of the United States,” 47 U.S.C.
§ 1601(b)(2)(c), including communications equipment that is
also “covered telecommunications equipment . . . as defined in
section 889(f)(3) of the [NDAA],” id. § 1601(c)(3). The FCC
then placed Petitioners’ equipment on the Covered List and
published the Covered List on its website. Public Safety and
Homeland Security Bureau Announces Publication of the List
of Equipment and Services Covered by Section 2 of the Secure
Networks Act, WC Docket No. 18-89, Public Notice, DA 21-
309 (PSHSB, Mar. 12, 2021).

    Against that backdrop, Congress took aim at Petitioners
again in the Secure Equipment Act. The SEA was enacted in
response to controversy over the FCC’s equipment-
authorization NPRM. Congress passed the SEA to remove any
doubt that the FCC was empowered to issue the equipment-
authorization ban that Petitioners currently challenge. The
SEA requires the FCC to promulgate the proposed rule that
would ban authorizations for “equipment that is on the list of
covered communications equipment . . . published by” the
Commission. 135 Stat. at 423. As explained below, when
                              13
Congress directed the FCC to follow through on its NPRM and
to prohibit the authorization of equipment that is on the
Covered List, Congress was fully aware that (1) the NPRM
specifically discussed Petitioners’ products in connection with
the proposed ban, and (2) Petitioners’ products were on the
Covered List. It appears, then, that when Congress passed the
SEA, it intended to require the FCC to prohibit the marketing
and sale of Petitioners’ products for listed purposes within the
United States.

    Section 2(a) of the SEA reads as follows:

          (1) IN GENERAL.—Not later than 1 year
          after the date of the enactment of this Act,
          the Commission shall adopt rules in the
          proceeding initiated in the Notice of
          Proposed Rulemaking in the matter of
          Protecting Against National Security
          Threats to the Communications Supply
          Chain       through      the    Equipment
          Authorization Program (ET Docket No.
          21–232; FCC 21–73; adopted June 17,
          2021), in accordance with paragraph (2),
          to update the equipment authorization
          procedures of the Commission.

          (2) UPDATES REQUIRED.—In the
          rules adopted under paragraph (1), the
          Commission shall clarify that the
          Commission will no longer review or
          approve any application for equipment
          authorization for equipment that is on the
          list   of    covered    communications
          equipment or services published by the
          Commission under section 2(a) of the
                               14
           Secure and Trusted Communications
           Networks Act of 2019 (47 U.S.C.
           1601(a)).

135 Stat. at 423.

     Thus, subsection (1) identifies by docket number the
NPRM in which the FCC proposed to ban authorizations of
equipment on the Covered List: It orders the FCC to adopt
rules pursuant to that specifically described NPRM. The
NPRM referred to Petitioners, by name, as entities whose
products would no longer be authorized for listed purposes.
Meanwhile, subsection (2) mandates that the rules adopted in
connection with the NPRM must carry out the FCC’s proposed
ban of authorizations of equipment “that is on the list of
covered communications equipment or services published by
the Commission.” 135 Stat. at 423. Subsection (2) explicitly
refers to the Covered List, which included Petitioners’ products
at the time of the SEA’s passage.

       The text and historical context of the SEA demonstrate that
Congress incorporated the Covered List into the SEA, and
thereby ratified the composition of the list. “[W]here . . .
Congress adopts a new law incorporating sections of a prior
law, Congress normally can be presumed to have had
knowledge of the interpretation given to the incorporated law
. . . .” Lorillard v. Pons, 434 U.S. 575, 581 (1978). But we
need not rely on a presumption here because when Congress
incorporated the Covered List into the SEA, it plainly was
aware that Petitioners’ equipment was on the Covered List:
Not only was the list publicly available, but Congress itself
identified Petitioners’ products as national-security risks in the
NDAA and then, in the SNA, made that determination relevant
to the FCC’s decision whether to place certain communications
equipment on the Covered List. See Jackson v. Modly, 949
                                15
F.3d 763, 773 (D.C. Cir. 2020) (noting that an indication of
congressional acquiescence is “particularly strong if evidence
exists of the Congress’s awareness of and familiarity with such
an interpretation”). Moreover, the text of the SEA refers to the
NPRM, which was explicit that Petitioners’ equipment would
be subject to the proposed authorization ban. And the
legislative history of the SEA includes a specific reference to
Petitioners’ parent companies. See Memorandum from House
Committee on Energy and Commerce Staff, re Full Committee
Markup of 16 Health Bills and 8 Communications and
Technology Bills at 7 (July 19, 2021) (“The [SEA] would
prevent further integration and sales of Huawei, ZTE, Hytera,
Hikvision, and Dahua — all Chinese state-backed or directed
firms — in the United States regardless of whether federal
funds are involved.”). In short, the evidence of Congress’s
awareness of the contents of the Covered List could not be
clearer.

     Thus, when Congress referred to the Covered List in the
SEA without questioning or discussing the makeup of that list,
Congress affirmatively ratified the Covered List as it existed at
the time of the SEA’s passage. See Bragdon v. Abbott, 524
U.S. 624, 631 (1998) (“Congress’ repetition of a well-
established term carries the implication that Congress intended
the term to be construed in accordance with pre-existing
regulatory interpretations.”); cf. Forest Grove Sch. Dist. v. T.A.,
557 U.S. 230, 239–40 (2009) (“Congress is presumed to be
aware of an administrative or judicial interpretation of a statute
and to adopt that interpretation when it re-enacts a statute
without change.” (quoting Lorillard, 434 U.S. at 580));
Antonin Scalia & Bryan A. Garner, Reading Law: The
Interpretation of Legal Texts 322–26 (2012) (discussing the
                                  16
“prior-construction canon”).5 And when Congress targeted the
Covered List for the equipment-authorization ban, it
demonstrated its specific intent to prohibit the sale and
marketing of Petitioners’ products in the United States for
listed purposes.

     The Supreme Court has found congressional ratification of
agency actions and judicial interpretations in analogous
situations. In Lorillard v. Pons, for example, the Supreme
Court determined that when Congress enacted the Age
Discrimination in Employment Act (“ADEA”) of 1967, it was
aware of the prevailing judicial interpretations of the
incorporated provisions of the Fair Labor Standards Act
(“FLSA”). 434 U.S. at 580–82. Because “courts had
uniformly afforded jury trials” under the enforcement
provisions of the FLSA, the Court concluded that Congress
intended that trials by jury would also be available under the
ADEA. Id. at 585. Similarly, in Bragdon v. Abbott, the Court
held that the Americans with Disabilities Act’s (“ADA”)
definition of “disability” included individuals with HIV

5
     The ratification doctrine is frequently discussed in the context
of Congress’s reenactment of statutes. See Thompson v. Clifford,
408 F.2d 154, 164 (D.C. Cir. 1968) (“[T]he canon of statutory
construction that reenactment without change after a course of
administrative interpretation is tantamount to legislative ratification
of the interpretation” rests on the reasoning “either that those in
charge of the amendment are familiar with existing rulings, or that
they mean to incorporate them.” (quotation marks omitted)); United
States v. Bd. of Comm’rs of Sheffield, Ala., 435 U.S. 110, 135 (1978)
(concluding that when “there had been a longstanding administrative
interpretation of a statute when Congress re-enacted it, and . . . the
legislative history of the re-enactment showed that Congress agreed
with that interpretation, . . . Congress had ratified it”). The same
principles apply with even greater force here, where Congress so
clearly intended to incorporate the existing Covered List.
                              17
because the statute’s definition was drawn “almost verbatim”
from the definition of “handicapped individual” in the
Rehabilitation Act of 1973. 524 U.S. at 631. A 1988
Department of Justice Office of Legal Counsel (“OLC”)
opinion had concluded that the Rehabilitation Act protected
HIV-infected individuals. Id. at 642. The Court observed that
“[a]ll indications are that Congress was well aware of the
position taken by OLC when enacting the ADA and intended
to give that position its active endorsement.” Id. at 645. Like
in Lorillard and Bragdon, “all indications” here are that
Congress was “well aware” of the legal and administrative
landscape when it enacted the SEA; and we thus infer that
Congress intended the equipment-authorization ban to apply to
all products that were on the Covered List at that time. But see
Public Citizen, Inc. v. HHS, 332 F.3d 654, 668–69 (D.C. Cir.
2003) (declining to find ratification where there was no
evidence that Congress was aware of the relevant agency
action).

      Petitioners contend that the SEA addresses only the
consequences of being on the Covered List, while the SNA
addresses who should be on the List. They argue that, because
their products do not meet the statutory definition of
“communications equipment” in the SNA, they cannot
properly be on the Covered List or be subject to the equipment-
authorization ban. We disagree. Petitioners seek to challenge
their placement on the Covered List, which occurred before
Congress enacted the SEA. But when Congress specified in
the SEA that equipment on the Covered List would no longer
be eligible for authorizations, Congress required that the ban
would apply to Petitioners’ equipment. Petitioners’ objection
to their inclusion on the Covered List under the SNA is thus
foreclosed by Congress’s “affirmative ratification of the
[FCC’s] administrative interpretation[]” of the content of the
list. Bragdon, 524 U.S. at 646.
                                18
     In sum, the 2022 Order implemented the SEA, which
ratified the inclusion of Petitioners’ products on the Covered
List. Because Congress intended the FCC to ban the
authorization of any equipment that was on the Covered List at
the time of the SEA’s enactment, Petitioners’ claim that the
FCC erred when it first placed Petitioners’ equipment on the
Covered List at an earlier time is irrelevant. Congress has
“power to ratify the acts which it might have authorized” and
such “ratification, if made, [is] equivalent to an original
authority.” United States v. Heinszen, 206 U.S. 370, 384
(1907). Even if Petitioners were correct that the FCC
misinterpreted the SNA when it first placed Petitioners’
products on the Covered List, Congress’s ratification of the
Covered List has foreclosed that claim.6

     Finally, to the extent that there is any ambiguity, the
national-security judgments and concerns underlying the
Executive Branch’s decision in this case counsel deference.
See Dep’t of Navy v. Egan, 484 U.S. 518, 530 (1988) (“[C]ourts
traditionally have been reluctant to intrude upon the authority
of the Executive in military and national security affairs.”). As
we have previously written, “[w]e cannot second-guess the
FCC’s judgment that allowing China to access this information
poses a threat to national security.” Pac. Networks Corp. v.
FCC, 77 F.4th 1160, 1164 (D.C. Cir. 2023). That deference is
redoubled by the repeated acts of Congress expressly
identifying Petitioners’ video-surveillance equipment as
posing national-security risks. See Fed. Express Corp. v. Dep’t
of Commerce, 39 F.4th 756, 770 (D.C. Cir. 2022) (requiring the

6
     We hold only that Congress ratified the content of the Covered
List when it enacted the SEA. We therefore need not reach the
question of whether Congress ratified the interpretations of the SNA
that the FCC employed when creating that list. We also do not
express any view on Petitioners’ arguments about the FCC’s
authority under the SNA.
                                19
“full force” of judicial deference on issues that “fall in the core
of Executive and Legislative Branch expertise in the areas of
national security and foreign affairs”).

                                B.

     Under the challenged Order, Petitioners’ equipment is
banned only when used “[f]or the purpose of public safety,
security of government facilities, physical security surveillance
of critical infrastructure, and other national security purposes.”
J.A. 209 (alteration in original). Petitioners take issue with the
FCC’s newly introduced definition of “critical infrastructure”
in the Order. See Pet’rs’ Br. 46 (“The Commission’s
interpretation of ‘critical infrastructure’ eviscerates the
statutory limits and contravenes Congressional intent by
treating nearly all aspects of the economy as ‘critical
infrastructure.’”).     We agree with Petitioners that the
Commission’s interpretation is unjustifiably broad and is
therefore arbitrary and capricious. See 5 U.S.C. § 706(2)(A).

      The FCC relied on the Patriot Act, Presidential Policy
Directive 21, and the Cybersecurity and Infrastructure Security
Agency’s set of National Critical Functions in crafting its
definition of critical infrastructure. The Order states that “any
systems or assets, physical or virtual, connected to the sixteen
critical infrastructure sectors identified in PPD-21 or the 55
[National Critical Functions] identified in [the] CISA/NRMC
[risk management guide] could reasonably be considered
‘critical infrastructure.’” J.A. 211. Although Petitioners
concede that the FCC’s application of the Patriot Act definition
of critical infrastructure may be appropriate, they assert that the
Commission went too far in incorporating PPD-21 and the
CISA National Critical Functions, as well as sweeping in
anything that is merely “connected to” those economic sectors
and functions. Pet’rs’ Br. 54–57 (arguing that the FCC
                                20
“wrongly conflated multiple definitions of ‘critical
infrastructure’ from different sources, without considering how
they fit together or apply here”).

     The Commission’s choice of reference materials —
government sources that define “critical infrastructure” and
related concepts in national-security contexts — was
reasonable, and the Commission adequately explained why the
cited sources were relevant. See Motor Vehicle Mfrs. Ass’n of
U.S., Inc. v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43
(1983) (noting that in determining whether an agency has
provided a “satisfactory explanation,” courts look for “whether
the decision was based on a consideration of the relevant
factors and whether there has been a clear error of judgment”
(quotation marks omitted)). The Patriot Act defines “critical
infrastructure” as “systems and assets, whether physical or
virtual, so vital to the United States that the incapacity or
destruction of such systems and assets would have a
debilitating impact on security, national economic security,
national public health or safety, or any combination of those
matters.” 42 U.S.C. § 5195c(e). Meanwhile, PPD-21
identifies sixteen “critical infrastructure sectors,” including
commercial facilities, dams, emergency services, and food and
agriculture. Directive on Critical Infrastructure Security and
Resilience, 1 Pub. Papers 106, 114–15 (Feb. 12, 2013). And
the CISA National Critical Functions Set includes activities
such as “provid[ing] cable access network services,”
“distribut[ing]    electricity,”    “conduct[ing]       elections,”
“provid[ing] metals and materials,” and “supply[ing] water.”
National Risk Management Center, Cybersecurity and
Infrastructure Security Agency, National Critical Functions
Status Update to the Critical Infrastructure Community 2–8
(2020) (capitalization altered throughout). The FCC’s reliance
on its chosen sources reflects appropriate consideration of
relevant factors identifying “critical” areas of the economy that
                                21
have been vetted by those in the Executive Branch charged
with assessing national-security risks. See Republican Nat’l
Comm. v. FEC, 76 F.3d 400, 408 (D.C. Cir. 1996) (“[T]he
Commission’s new regulation results from exactly the kind of
agency balancing of various policy considerations to which
courts should generally defer.”); LaRose v. FCC, 494 F.2d
1145, 1146 n.2 (D.C. Cir. 1974) (noting that part of the FCC’s
regulatory mandate is to “consider other federal policies”).

     But the definition of “critical infrastructure” ultimately
adopted by the FCC includes any “systems or assets” that are
merely “connected to” the sixteen sectors identified by PPD-21
or the fifty-five functions listed by the CISA risk-management
guide. J.A. 211. The FCC failed to explain or justify its use of
the expansive words “connected to,” and the scope of the
definition is therefore arbitrarily broad.

     First, the Commission does not explain why everything
“connected to” any sector or function that implicates national
security must be considered “critical,” especially in light of the
Patriot Act’s emphasis on particular “systems and assets” that
are “vital to the United States.” The FCC’s definition threatens
to envelop ever-broadening sectors of the economy. As
Petitioners note, the FCC’s definition reads the word “critical”
out of the statute and applies the equipment-authorization ban
to all “infrastructure.” Pet’rs’ Br. 56. It is entirely implausible
that every single system or asset that is “connected to,” for
example, the food and agriculture sector, or to the function of
supplying water, is “critical” to the national security of the
United States. The FCC did not rebut Petitioners’ argument
that “coffee shops, residential apartment buildings, used car
lots, and dry-cleaning stores” could all plausibly fall within the
Commission’s definition. Id. at 57. Indeed, at oral argument,
the FCC was unable to identify any relevant infrastructure that
would not be covered, whether critical or not. Oral Argument
                               22
at 52:28–53:50. Without further explanation of why its
expansive interpretation is reasonable or consistent with the
statute, the Commission’s definition is not in accordance with
law and is arbitrary and capricious. See 5 U.S.C. § 706(2)(A);
China Telecom, 57 F.4th at 264 (agencies must “reasonably
explain[]” their decisions (quotation marks omitted)).

     Second, the FCC’s definition fails to provide
comprehensible guidance about what falls within the bounds of
“critical infrastructure.” Instead, the Order merely states that
“any” systems or assets “connected to” a laundry list of
economic sectors and functions “could reasonably be
considered” critical infrastructure. J.A. 211. Although the
FCC suggests that “[P]etitioners need only seek guidance from
the Commission by submitting a request for a declaratory
ruling,” such a requirement is unworkable. Resp. Br. 57. The
Commission has essentially frozen all sales of Petitioners’
equipment in the United States until Petitioners can submit a
marketing plan which demonstrates that their products will not
be used for “physical security surveillance of critical
infrastructure.” J.A. 209. Without a clear understanding of
what constitutes a “connect[ion] to” critical infrastructure,
Petitioners will face significant difficulty in developing such a
marketing plan. The FCC provides no justification for
imposing such a burden on Petitioners. See ACA Int’l v. FCC,
885 F.3d 687, 700 (D.C. Cir. 2018) (Agency action is “arbitrary
and capricious” if it “fails to articulate a comprehensible
standard” and “offers no meaningful guidance to affected
parties.” (quotation marks omitted)).

     Accordingly, we conclude that the FCC’s definition of
“critical infrastructure” as all systems and assets “connected
to” sixteen economic sectors and fifty-five economic functions
is overbroad, unexplained, and arbitrary.
                               23
                           *    *   *

     For the foregoing reasons, we uphold the FCC’s Order to
the extent that it prohibits the authorization of Petitioners’
equipment for sale and marketing in the United States for use
in the physical security surveillance of critical infrastructure;
but we vacate the portions of the FCC’s order defining “critical
infrastructure” and remand to the Commission to comport its
definition and justification for it with the statutory text of the
NDAA. Ky. Mun. Energy Agency v. FERC, 45 F.4th 162, 179–
80 (D.C. Cir. 2022) (“Vacatur is the normal remedy for
unsustainable agency action, and . . . the Commission . . . [has
not] given us any reason to depart from that standard course of
action.” (cleaned up)).

                                                     So ordered.