FCC Chairman Tom Wheeler plans to circulate a draft net neutrality proposal to his fellow commissioners on Thursday, which they are expected to vote on at the agency's May 15 open meeting.

The move is just a jumping off point. If the commission approves this notice of proposed rulemaking (NPRM), it will open up to public comment, so companies, trade groups, and average Web users can weigh in before anything becomes final.

"The NPRM will propose, consistent with the Court's analysis, that broadband providers would be required to offer a baseline level of service to their subscribers, along with the ability to enter into individual negotiations with content providers," an FCC spokesman said. "In all instances, broadband providers would need to act in a commercially reasonable manner subject to review on a case-by-case basis. Exactly what the baseline level of service would be, the construction of a 'commercially reasonable' standard, and the manner in which disputes would be resolved, are all among the topics on which the FCC will be seeking comment."

That bit is not sitting too well with consumer groups. "The FCC is inviting ISPs to pick winners and losers online," Michael Weinberg, vice president at Public Knowledge, said in a statement. "The very essence of a 'commercial reasonableness' standard is discrimination."

"This is not Net Neutrality," Free Press President and CEO Craig Aaron said. "It's an insult to those who care about preserving the open Internet to pretend otherwise. The FCC had an opportunity to reverse its failures and pursue real Net Neutrality by reclassifying broadband under the law. Instead, in a moment of political cowardice and extreme shortsightedness, it has chosen this convoluted path that won't protect Internet users."

The announcement comes about two months after Wheeler said he would pursue new net neutrality rules after the D.C. Circuit Court of Appeals struck down the ones that were in place. The appeals court agreed with Verizon that the FCC did not have the authority to craft such rules. It reaffirmed, however, that the FCC has the "general authority" to oversee broadband providers' treatment of Internet traffic, and it is that part of the ruling that the FCC has seized upon to move forward with this NPRM.

The FCC opted not to challenge the court's decision. Instead, Wheeler requested new rules that tackled three parts of the now-defunct FCC Open Internet rules: ISP transparency; a ban on blocking Internet traffic; and using Section 706 of the Telecom Act to "fulfill the goals of the non-discrimination rule."

Last month, an FCC official said that in crafting new net neutrality rules, the agency would look to its data-roaming rules, which it handed down in 2012 and required wireless carriers to offer "reasonable" data roaming rates.

Editor's Note: This story was updated at 5:50 p.m. and 6:20 ET.

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