Nelson, Pallone Foresee Possible Bipartisan Net Neutrality Hill Compromise After FCC Vote

Senior Democrats on the House and Senate Commerce committees agreed legislation looks more feasible following FCC action. “The FCC’s going to take action very quickly,” House Commerce Committee ranking member Frank Pallone, D-N.J., told us. “I don’t think it’s possible to do bipartisan legislation before the FCC takes action. I don’t see the hurry anyway because ... I’m not looking for whatever legislation we cast to inhibit what the FCC does. So I don’t see any need to move legislation quickly.”

“Wheeler’s doing a great job,” Senate Commerce Committee ranking member Bill Nelson, D-Fla., told us. “Now the FCC will consider what he’s suggesting. By the end of the month, they’ll come out with something. Then, once we see what is the final [order], that will be a good template for the Commerce Committee to see if we think that legislation is necessary and what we will do in a bipartisan way.” He affirmed that if it’s bipartisan, it will be after the Feb. 26 meeting.

Hill Republicans circulated draft legislation last month that would codify net neutrality protections while limiting FCC reliance on Title II and Telecom Act Section 706. Democrats, including Pallone and Nelson, outlined many concerns at a pair of bicameral Jan. 21 Commerce hearings.

“We’re open to conversations,” Senate Communications Subcommittee ranking member Brian Schatz, D-Hawaii, said in an interview Tuesday. In a Huffington Post op-ed Wednesday Schatz argued that legislation would be “fine” but “premature” given the FCC’s pending action.

“I’m happy with the action we’re seeing from the FCC and I think it’s important that we’re supportive and at the same time, we’ll continue to work with Republicans on legislation,” Pallone said. “But I don’t want the legislation to in any way inhibit what the FCC is doing. I think what the FCC is doing, moving forward, is very important. But we can certainly work with Republicans on legislation at the same time.”

Thune Worried About Democratic 'Stalling'

“It’s easy to say that now,” Senate Commerce Committee Chairman John Thune, R-S.D., told us at the Capitol Wednesday about receptivity from Nelson and Pallone. “I think that becomes much harder once the FCC has come out and actually put their new ruling out there. I think it keeps the door open, keeps us from moving forward if we think there might be some Dems that are available to work with us on a bipartisan solution, but the problem is I think that once that window starts to close and it becomes clear that they’ve done this through executive action, that every incentive and appetite among Democrats for working with us lessens over time. Maybe I’m wrong, I hope I’m wrong.” He worries Democrats may be “stalling,” trying to buy time, he said.

Thune sees bipartisan legislation as potentially advancing after the FCC vote, he said, acknowledging Democrats' reluctance to move before the vote. “We’re not getting much cooperation at this point, I think because the administration and the FCC have weighed in pretty heavily with Democrats up here,” Thune said. “We’d be happy to work with them. I’ve told Chairman Wheeler that. Our staffs have been in contact. We’ve talked to a lot of Democrats up here. We’ve talked to the administration and told them this is a much preferable route to go down. But they’re pretty dug in.”

“Chairman Thune seems pretty fixated on net neutrality at this point and not doing anything else until he sees if he can move forward on that,” said Sen. Claire McCaskill, D-Mo., at the Capitol Tuesday. “He wants to try to get something done.” She wants to examine all the details and visit with Wheeler before weighing in, she told us.

House Communications Subcommittee Chairman Greg Walden, R-Ore., addressed net neutrality at an unrelated markup session Wednesday, inviting Democrats to compromise to avoid litigation. He said it's strange that the public lacks information on the net neutrality order, and slammed Wheeler’s rejection of the idea from Walden and other Hill Republicans that the FCC release the draft order publicly on Thursday, the day it circulates. Wheeler’s response amounted to “old-school, Washington regulatory mumbo jumbo,” Walden said. “If the chairman is willing to brief members of Congress, our staffs, the White House, and who knows who else about all the key points, why not share the language he’s written to accomplish his goals?”

'Internet Freedom Day'?

Sens. Cory Booker, D-N.J.; Al Franken, D-Minn.; Ed Markey, D-Mass.; and Bernie Sanders, I-Vt., joined to praise Wheeler at a news conference at the Capitol. Markey dismissed any need for legislation. “You are on the right side of history,” Markey said, referring to Wheeler. “Today is Internet Freedom Day.” He disagreed that Title II amounts to “old rules” and defended its public interest virtues. “It is not the end,” Booker cautioned, pointing to “powerful forces” ready to assault net neutrality ideas. “We dodged a bullet,” Franken said, predicting court battles but emphasizing that the D.C. Circuit Court pointed to Title II reclassification (see 1401150046).

Lawmakers issued statements praising or deriding the FCC proposal, split along party lines. House Communications Subcommittee ranking member Anna Eshoo, D-Calif., called it “a triumph for the American consumer” and “the architecture of our digital future,” deserving approval from the full FCC. Senate Judiciary Committee ranking member Patrick Leahy, D-Vt., welcomed the details and emphasized the ban on paid prioritization deals. Rep. Doris Matsui, D-Calif., also credited Wheeler for tackling them. But the rules are “not the end of the road,” Matsui said. “More work will need to be done to ensure the final rules protect consumers and encourage innovation. … The FCC must maintain its flexibility for the Internet age.” The proposal is “a stake in the ground to protect consumers,” Sen. Maria Cantwell, D-Wash., said, issuing a statement and taking to the Senate floor to commend Wheeler.

The proposal "would squelch investment" and "lock net neutrality protection in the courts without reaching Americans now or anytime in the near future,” House Judiciary Committee Chairman Bob Goodlatte, R-Va., said in a statement. “I urge the FCC to instead consider using our nation’s antitrust laws to prevent discriminatory and anti-competitive conduct and punish bad actors on the Internet effective immediately.” Thune’s statement framed the proposal as a “power grab for the federal government by the chairman of a supposedly independent agency who finally succumbed to the bully tactics of political activists and the president himself.”

“It’s unfortunate, it just creates a cloud over everything else that we need to get done,” Thune said in an interview, considering how net neutrality affects the Commerce Committee agenda. “There’s so much focus on it, so much attention paid to it, it would be so much easier if they would just work with us."