PanAmSat Corp v. FCC

CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 21, 1999
Docket98-1408
StatusPublished

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PanAmSat Corp v. FCC, (D.C. Cir. 1999).

Opinion

United States Court of Appeals

FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued September 15, 1999 Decided December 21, 1999

No. 98-1408

PanAmSat Corporation, Petitioner

v.

Federal Communications Commission and United States of America, Respondents

BellSouth Wireless, Inc., Intervenor

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

Henry Goldberg argued the cause for petitioner. With him on the briefs were Joseph A. Godles and W. Kenneth Ferree.

C. Grey Pash, Jr., Counsel, Federal Communications Com- mission, argued the cause for respondent. With him on the brief were Christopher J. Wright, General Counsel, Daniel M. Armstrong, Associate General Counsel, Joel I. Klein, Assistant Attorney General, U.S. Department of Justice, Catherine G. O'Sullivan and Nancy C. Garrison, Attorneys.

Before: Williams, Rogers and Garland, Circuit Judges.

Opinion for the Court filed by Circuit Judge Williams.

Williams, Circuit Judge: Congress requires that the Fed- eral Communications Commission collect fees to finance its regulatory activities. In 1985, as part of the Consolidated Omnibus Budget Reconciliation Act, it amended the Commu- nications Act of 1934 by adding a section 8, 47 U.S.C. s 158, which created a schedule of "application fees" for regulatees to pay to the FCC. In 1993, again as part of the Omnibus Budget Reconciliation Act, it expanded FCC fee collection by adding a section 9, which mandated the collection of "regula- tory fees" to recover the costs of "enforcement activities, policy and rulemaking activities, user information services, and international activities." 47 U.S.C. s 159(a)(1).

PanAmSat Corporation, an operator of satellites for tele- communications purposes, petitions for review of two separate aspects of the FCC's 1998 assessment of regulatory fees. See Assessment and Collection of Regulatory Fees for Fiscal Year 1998, 13 FCC Rcd 19820 (1998) ("1998 Order"). Both challenges relate to the Commission's interpretation of s 9. In the first PanAmSat attacks the FCC's exemption of Com- sat Corporation from "space station fees," 47 U.S.C. s 159(g), for satellites Comsat operates as part of the Intelsat and Inmarsat systems. In the second it challenges the FCC's assessment of fees on PanAmSat for "international circuits." Id.

Both challenges confront a jurisdictional problem. Al- though PanAmSat attacks a 1998 Order, the decisions it complains of are identical to the formulations reached by the Commission in its 1997 Order. See Assessment and Collec-

tion of Regulatory Fees for Fiscal Year 1997, 12 FCC Rcd 17161, 17187-89 (1997) ("1997 Order"). The statute authoriz- ing judicial review states that petitions for review must be filed within 60 days of the final order, see 28 U.S.C. s 2344; PanAmSat's petition is timely for the 1998 Order but not for that of 1997. We assume without deciding that the clock does not automatically start fresh on each new annual iteration of an order that imposes burdens with respect to a specific year. Even with that assumption, PanAmSat has brought itself within standard exceptions to any inference of preclusion to be drawn from the 60-day limit. See Independent Comm. Bankers of Am. v. Board of Governors of the Fed. Reserve Sys., 1999 U.S. App. LEXIS 28145, at *19 (D.C. Cir. Nov. 2, 1999) (noting that typical statutory review periods rarely contain an "explicit bar" to challenges brought after the time limit). Because the exceptions are different, we address the jurisdictional issue separately for each substantive challenge.

Space Station Fees for Comsat

Comsat is a private corporation formed pursuant to the Communications Satellite Act of 1962. See 47 U.S.C. s 701 et seq. At Comsat's creation Congress designated it the United States's sole representative and signatory to the In- ternational Telecommunications Satellite Organization ("Intel- sat"), 47 U.S.C. s 731, and later the International Maritime Satellite Organization ("Inmarsat"), 47 U.S.C. s 752; see also Comsat Corp. v. FCC, 114 F.3d 223, 225 (D.C. Cir. 1997). These organizations own satellites that are used by signato- ries, such as Comsat, to provide international communica- tions. Comsat provides such services as a common carrier and is "fully subject to the provisions of title II and title III of [the Communications] Act," 47 U.S.C. s 741. Title II governs regulation of common carriers, 47 U.S.C. s 201 et seq.; Title III governs radio communication, 47 U.S.C. s 301 et seq. To participate in the launch of an Intelsat satellite, for example, Comsat must seek authority from the FCC pursuant to 47 U.S.C. s 309. See, e.g., In the Matter of Comsat Corporation Application for authority to participate

in a program for the construction of up to four Intelsat VIII satellites and to provide its authorized Intelsat services via these facilities, 12 FCC Rcd 15971 (1997) ("Authority to Participate").

Until 1985 the FCC required (with limited exceptions) that international fixed satellite services be provided via the Intel- sat system. In that year it authorized provision of separate international satellite services; in 1988 PanAmSat became the first U.S. provider of a separate system and it now operates its own worldwide fleet of satellites. Unlike Comsat, PanAm- Sat operates as a non-common carrier.

Both Comsat and PanAmSat pay s 8 application fees for space stations. 47 U.S.C. s 158. Such fees apply to those who "launch and operate" space stations. 47 U.S.C. s 158(g) (Schedule of Application Fees, Common Carrier Services (16)(b)). PanAmSat launches and operates its own satellites, so it obviously must pay the fees; in 1987 the FCC concluded that Comsat must do so as well insofar as it "participate[s] in the construction, or in the launch and operation, of [a station in the Intelsat or Inmarsat system]." In the Matter of Establishment of a Fee Collection Program to Implement the Provisions of the Consolidated Omnibus Budget Reconcilia- tion Act of 1985, 2 FCC Rcd 947, 974 & n.226 (1987) ("1987 Order"). But when Congress established regulatory fees for space stations in 1993 under s 9, the FCC concluded that Comsat was exempt from such fees for its Intelsat and Inmarsat space stations, even though companies like PanAm- Sat were required to pay the new s 9 fees. See 47 U.S.C. s 159(g) (Schedule of Regulatory Fees, Common Carrier Bureau); Assessment and Collection of Regulatory Fees for Fiscal Year 1995, 10 FCC Rcd 13512 (1995) ("1995 Order"). Comsat's exemption from these fees persists through the 1998 Order.

PanAmSat says that its challenge to the Comsat exemption is timely for two reasons. It argues first that an intervening decision of this circuit, Comsat Corp. v. FCC, 114 F.3d 223 (D.C. Cir. 1997), reopened the issue, and second that the FCC's 1997 decision, although deciding the issue for 1997, explicitly kept the issue open for the future.

The FCC exempted Comsat from space station fees back in 1995, but in 1996 it noted that Comsat was not being charged for the regulatory costs it imposed on the FCC.1 This prompted the agency to adopt a "signatory fee" that applied to Comsat as the United States's signatory in organizations like Intelsat. See Comsat, 114 F.3d at 225-26. Comsat challenged the fee, and in an opinion filed May 30, 1997, this court invalidated it because the FCC had not adopted the signatory fee as a consequence of any identified "rulemaking proceedings or changes in law," a requisite for changes in regulatory fees under 47 U.S.C. s 159(b)(3).

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