Administrative Practice and Procedure, Postal Service, 71557-71560 [E8-27910]
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Federal Register / Vol. 73, No. 228 / Tuesday, November 25, 2008 / Rules and Regulations
Taking of Private Property
This rule will not affect a taking of
private property or otherwise have
taking implications under Executive
Order 12630, Governmental Actions and
Interference with Constitutionally
Protected Property Rights.
Civil Justice Reform
This rule meets applicable standards
in sections 3(a) and 3(b)(2) of Executive
Order 12988, Civil Justice Reform, to
minimize litigation, eliminate
ambiguity, and reduce burden.
Protection of Children
We have analyzed this rule under
Executive Order 13045, Protection of
Children from Environmental Health
Risks and Safety Risks. This rule is not
an economically significant rule and
does not create an environmental risk to
health or risk to safety that may
disproportionately affect children.
Indian Tribal Governments
This rule does not have tribal
implications under Executive Order
13175, Consultation and Coordination
with Indian Tribal Governments,
because it does not have a substantial
direct effect on one or more Indian
tribes, on the relationship between the
Federal Government and Indian tribes,
or on the distribution of power and
responsibilities between the Federal
Government and Indian tribes.
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Energy Effects
We have analyzed this rule under
Executive Order 13211, Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use. We have
determined that it is not a ‘‘significant
energy action’’ under that order because
it is not a ‘‘significant regulatory action’’
under Executive Order 12866 and is not
likely to have a significant adverse effect
on the supply, distribution, or use of
energy. The Administrator of the Office
of Information and Regulatory Affairs
has not designated it as a significant
energy action. Therefore, it does not
require a Statement of Energy Effects
under Executive Order 13211.
Technical Standards
The National Technology Transfer
and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use
voluntary consensus standards in their
regulatory activities unless the agency
provides Congress, through the Office of
Management and Budget, with an
explanation of why using these
standards would be inconsistent with
applicable law or otherwise impractical.
Voluntary consensus standards are
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technical standards (e.g., specifications
of materials, performance, design, or
operation; test methods; sampling
procedures; and related management
systems practices) that are developed or
adopted by voluntary consensus
standards bodies.
This rule does not use technical
standards. Therefore, we did not
consider the use of voluntary consensus
standards.
Environment
We have analyzed this rule under
Department of Homeland Security
Management Directive 5100.1 and
Commandant Instruction M16475.lD,
which guide the Coast Guard in
complying with the National
Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321–4370f), and
have concluded under the Instruction
that there are no factors in this case that
would limit the use of a categorical
exclusion under section 2.B.2 of the
Instruction. Therefore, this rule is
categorically excluded, under figure 2–
1, paragraph (34)(g), of the Instruction,
from further environmental
documentation. An environmental
analysis checklist and a categorical
exclusion determination are available in
the docket where indicated under
ADDRESSES.
71557
inform the public through broadcast
notices to mariners of the enforcement
period for the safety zone as well as any
changes in the planned schedule.
(c) Regulations. (1) In accordance with
the general regulations in § 165.23 of
this part, entry into this zone is
prohibited unless authorized by the
Captain of the Port Pittsburgh.
(2) Persons or vessels requiring entry
into or passage through a safety zone
must request permission from the
Captain of the Port Pittsburgh or a
designated representative. They may be
contacted through Coast Guard Sector
Ohio Valley at 1–800–253–7465.
(3) All persons and vessels shall
comply with the instructions of the
Captain of the Port Pittsburgh and
designated on-scene U.S. Coast Guard
patrol personnel. On-scene U.S. Coast
Guard patrol personnel includes
Commissioned, Warrant, and Petty
Officers of the U.S. Coast Guard.
Dated: October 30, 2008.
S.T. Higman,
Lieutenant Commander, U.S. Coast Guard,
Acting Captain of the Port Pittsburgh.
[FR Doc. E8–27980 Filed 11–24–08; 8:45 am]
BILLING CODE 4910–15–P
POSTAL REGULATORY COMMISSION
List of Subjects in 33 CFR Part 165
39 CFR Part 3020
Harbors, Marine safety, Navigation
(water), Reporting and recordkeeping
requirements, Security measures, and
Waterways.
■ For the reasons discussed in the
preamble, the Coast Guard amends 33
CFR part 165 as follows:
[Docket Nos. MC2009–5 and CP2009–6;
Order No. 135]
PART 165—REGULATED NAVIGATION
AREAS AND LIMITED ACCESS AREAS
1. The authority citation for part 165
continues to read as follows:
■
Authority: 33 U.S.C. 1226, 1231; 46 U.S.C.
Chapter 701, 3306, 3703; 50 U.S.C. 191, 195;
33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5;
Pub. L. 107–295, 116 Stat. 2064; Department
of Homeland Security Delegation No. 0170.1.
2. Add § 165.T08–033 to read as
follows:
■
§ 165.T08–033 Safety Zone; Allegheny
River, Clinton, PA.
(a) Location. The following area is a
Safety Zone: The waters extending the
entire width of the Allegheny River
from mile marker 36.1 to mile marker
36.5.
(b) Enforcement Period. This rule will
be enforced from 1 p.m. on October 30,
2008 until 11:59 p.m. on December 31,
2008. The Captain of the Port Pittsburgh
or a designated representative will
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Administrative Practice and Procedure,
Postal Service
Postal Regulatory Commission.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Commission is adding
Priority Mail Contract 4 to the
Competitive Product List. This action is
consistent with changes in a recent law
governing postal operations and a
related Postal Service request.
Republication of the lists of market
dominant and competitive products is
also consistent with new requirements
in the law.
DATES: Effective November 25, 2008.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 and
stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory
History, 73 FR 66077 (November 6,
2008).
The Postal Service seeks to add a new
product identified as Priority Mail
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Federal Register / Vol. 73, No. 228 / Tuesday, November 25, 2008 / Rules and Regulations
Contract 4 to the Competitive Product
List. For reasons discussed below, the
Commission approves the Request.
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I. Background
On October 27, 2008, the Postal
Service filed a formal request pursuant
to 39 U.S.C. 3642 and 39 CFR 3020.30
et seq. to add Priority Mail Contract 4
to the Competitive Product List. The
Postal Service asserts that the Priority
Mail Contract 4 product is a competitive
product ‘‘not of general applicability’’
within the meaning of 39 U.S.C.
3632(b)(3). This Request has been
assigned Docket No. MC2009–5.1
The Postal Service
contemporaneously filed a contract
related to the proposed new product
pursuant to 39 U.S.C. 3632(b)(3) and 39
CFR 3015.5. The contract has been
assigned Docket No. CP2009–6.
In support of its Request, the Postal
Service filed the following materials: (1)
A redacted version of the Governors’
Decision authorizing the new product
which also includes an analysis of the
Priority Mail Contract 4; 2 (2) a redacted
version of the contract, which, among
other things, provides that the contract
will expire 2 years from the effective
date, which is proposed to be 1 day after
the Commission issues all regulatory
approvals; 3 (3) requested changes in the
Mail Classification Schedule product
list; 4 (4) a Statement of Supporting
Justification as required by 39 CFR
3020.32; 5 and (5) certification of
compliance with 39 U.S.C. 3633(a).6
In the Statement of Supporting
Justification, Kim Parks, Manager, Sales
and Communications, Expedited
Shipping, asserts that the service to be
provided under the contract will cover
its attributable costs, make a positive
contribution to institutional costs, and
increase contribution toward the
requisite 5.5 percent of the Postal
1 Request of the United States Postal Service to
Add Priority Mail Contract 4 to Competitive
Product List and Notice of Establishment of Rates
and Class Not of General Applicability, October 27,
2008 (Request).
2 Attachment A to the Request. The analysis that
accompanies the Governors’ Decision notes, among
other things, that the contract is not risk free, but
concludes that the risks are manageable. See also
Second Errata to Request of the United States Postal
Service to Add Priority Mail Contract 4 to
Competitive Product List and Notice of
Establishment of Rates and Class Not of General
Applicability, October 30, 2008. The Postal Service
subsequently revised its analysis. See Third Errata
to Request of the United States Postal Service to
Add Priority Mail Contract 4 to Competitive
Product List and Notice of Establishment of Rates
and Class Not of General Applicability, November
18, 2008.
3 Attachment B to the Request.
4 Attachment C to the Request.
5 Attachment D to the Request.
6 Attachment E to the Request.
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14:39 Nov 24, 2008
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Service’s total institutional costs.
Request, Attachment D, at 1. W. Ashley
Lyons, Manager, Corporate Financial
Planning, Finance Department, certifies
that the contract complies with 39
U.S.C. 3633(a). See id. Attachment E.
The Postal Service filed much of the
supporting materials, including the
Governors’ Decision and the specific
Priority Mail Contract 4, under seal. In
its Request, the Postal Service maintains
that the contract and related financial
information, including the customer’s
name and the accompanying analyses
that provide prices, terms, conditions,
and financial projections, should remain
under seal. Id. at 2.
In Order No. 124, the Commission
gave notice of the two dockets,
appointed a public representative, and
provided the public with an opportunity
to comment.7
II. Comments
Comments were filed by the Public
Representative.8 No filings were
submitted by other interested parties.
The Public Representative’s comments
focus principally on confidentially and
pricing under the contract. Public
Representative Comments at 2–3. The
Public Representative states that the
Postal Service has justified the extent of
confidentiality appropriate in this
matter. Id.
He concludes, inter alia, that the
contract should generate sufficient
revenue to cover the product’s
attributable costs and contribute to the
recovery of total institutional costs
assigned to competitive products. Id. at
3–4.
III. Commission Analysis
The Commission has reviewed the
contract, the financial analysis provided
under seal that accompanies it, and the
comments filed by the Public
Representative.
Statutory requirements. The
Commission’s statutory responsibilities
in this instance entail assigning Priority
Mail Contract 4 to either the Market
Dominant Product List or to the
Competitive Product List. 39 U.S.C.
3642. As part of this responsibility, the
Commission also reviews the proposal
for compliance with the Postal
Accountability and Enhancement Act
(PAEA) requirements. This includes, for
7 PRC Order No. 124, Notice and Order
Concerning Priority Mail Contract 4 Negotiated
Service Agreement, October 31, 2008 (Order No.
124).
8 Public Representative Comments in Response to
United States Postal Service Request to Add Priority
Mail Contract 4 to Competitive Product List,
November 6, 2008 (Public Representative
Comments).
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proposed competitive products, a
review of the provisions applicable to
rates for competitive products. 39 U.S.C.
3633.
Product list assignment. In
determining whether to assign Priority
Mail Contract 4 as a product to the
Market Dominant Product List or the
Competitive Product List, the
Commission must consider whether
The Postal Service exercises sufficient
market power that it can effectively set the
price of such product substantially above
costs, raise prices significantly, decrease
quality, or decrease output, without risk of
losing a significant level of business to other
firms or offering similar products.
39 U.S.C. 3642(b)(1). If so, the product
will be categorized as market dominant.
The competitive category of products
shall consist of all other products.
The Commission is further required to
consider the availability and nature of
enterprises in the private sector engaged
in the delivery of the product, the views
of those who use the product, and the
likely impact on small business
concerns. 39 U.S.C. 3642(b)(3).
The Postal Service asserts that its
bargaining position is constrained by
the existence of other shippers who can
provide similar services, thus
precluding it from taking unilateral
action to increase prices without the
risk of losing volume to private
companies. Request, Attachment D, at
2–3. The Postal Service also contends
that it may not decrease quality or
output without risking the loss of
business to competitors that offer
similar expedited delivery services. Id.
It further states that the shipper
supports the addition of the contract to
the product list to effectuate the
negotiated contractual terms. Id. at 3.
Finally, the Postal Service states that the
market for expedited delivery services is
highly competitive and requires a
substantial infrastructure to support a
national network. It indicates that large
carriers serve this market. Accordingly,
the Postal Service states that it is
unaware of any small business concerns
that could offer comparable service for
this customer. Id.
No commenter opposes the proposed
classification of Priority Mail Contract 4
as competitive. Having considered the
statutory requirement and the support
offered by the Postal Service, the
Commission finds that Priority Mail
Contract 4 is appropriately classified as
a competitive product and should be
added to the Competitive Product List.
Cost considerations. The Postal
Service’s filing seeks to establish a new
domestic Priority Mail product. The
contract is predicated on unit costs for
major mail functions, e.g., window
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Federal Register / Vol. 73, No. 228 / Tuesday, November 25, 2008 / Rules and Regulations
service, mail processing, and
transportation, based on the shipper’s
mail characteristics.
The Postal Service contends that
adding the Priority Mail Contract 4
product will result in processing
Priority Mail pieces that are less costly
for the Postal Service than the average
Priority Mail piece. See id. Attachment
A. It believes that its financial analysis
shows that these cost savings can be
accomplished while ensuring that the
contract covers its attributable costs,
does not result in subsidization of
competitive products by market
dominant products, and increases
contribution from competitive products.
Id., Attachment E, at 1.
Based on the data submitted and the
comments received, the Commission
finds that Priority Mail Contract 4
should cover its attributable costs (39
U.S.C. 3633(a)(2)), should not lead to
the subsidization of competitive
products by market dominant products
(39 U.S.C. 3633 (a)(1)), and should have
a positive effect on competitive
products’ contribution to institutional
costs (39 U.S.C. 3633 (a)(3)). Thus, an
initial review of the proposed Priority
Mail Contract 4 indicates that it
comports with the provisions applicable
to rates for competitive products.
The Postal Service shall promptly
notify the Commission when the
contract terminates, but no later than
the actual termination date. The
Commission will then remove the
contract from the Mail Classification
Schedule at the earliest possible
opportunity.
In conclusion, the Commission
approves Priority Mail Contract 4 as a
new product. The revision to the
Competitive Product List is shown
below the signature of this order and is
effective upon issuance of the order.
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IV. Ordering Paragraphs
It is Ordered:
1. Priority Mail Contract 4 (MC2009–
5 and CP2009–6) is added to the
Competitive Product List as a new
product under Negotiated Service
Agreements, Domestic.
2. The Postal Service shall notify the
Commission of the termination date of
the contract as discussed in this order.
3. The Secretary shall arrange for the
publication of this order in the Federal
Register.
List of Subjects in 39 CFR Part 3020
Administrative practice and
procedure; Postal Service.
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14:39 Nov 24, 2008
Jkt 217001
By the Commission.
Steven W. Williams,
Secretary.
For the reasons stated in the preamble,
under the authority at 39 U.S.C. 503, the
Postal Regulatory Commission amends
39 CFR part 3020 as follows:
■
PART 3020—PRODUCT LISTS
1. The authority citation for part 3020
continues to read as follows:
■
Authority: 39 U.S.C. 503; 3622; 3631; 3642;
3682.
2. Revise Appendix A to subpart A of
part 3020—Mail Classification to read as
follows:
■
Appendix A to Subpart A of Part
3020—Mail Classification
Schedule
Part A—Market Dominant Products
1000 Market Dominant Product List
First-Class Mail
Single-Piece Letters/Postcards
Bulk Letters/Postcards
Flats
Parcels
Outbound Single-Piece First-Class Mail
International
Inbound Single-Piece First-Class Mail
International
Standard Mail (Regular and Nonprofit)
High Density and Saturation Letters
High Density and Saturation Flats/Parcels
Carrier Route
Letters
Flats
Not Flat-Machinables (NFMs)/Parcels
Periodicals
Within County Periodicals
Outside County Periodicals
Package Services
Single-Piece Parcel Post
Inbound Surface Parcel Post (at UPU rates)
Bound Printed Matter Flats
Bound Printed Matter Parcels
Media Mail/Library Mail
Special Services
Ancillary Services
International Ancillary Services
Address List Services
Caller Service
Change-of-Address Credit Card
Authentication
Confirm
International Reply Coupon Service
International Business Reply Mail Service
Money Orders
Post Office Box Service
Negotiated Service Agreements
HSBC North America Holdings Inc.
Negotiated Service Agreement
Bookspan Negotiated Service Agreement
Bank of America Corporation Negotiated
Service Agreement
The Bradford Group Negotiated Service
Agreement
Market Dominant Product Descriptions
First-Class Mail
[Reserved for Class Description]
Single-Piece Letters/Postcards
[Reserved for Product Description]
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71559
Bulk Letters/Postcards
[Reserved for Product Description]
Flats
[Reserved for Product Description]
Parcels
[Reserved for Product Description]
Outbound Single-Piece First-Class Mail
International
[Reserved for Product Description]
Inbound Single-Piece First-Class Mail
International
[Reserved for Product Description]
Standard Mail (Regular and Nonprofit)
[Reserved for Class Description]
High Density and Saturation Letters
[Reserved for Product Description]
High Density and Saturation Flats/Parcels
[Reserved for Product Description]
Carrier Route
[Reserved for Product Description]
Letters
[Reserved for Product Description]
Flats
[Reserved for Product Description]
Not Flat-Machinables (NFMs)/Parcels
[Reserved for Product Description]
Periodicals
[Reserved for Class Description]
Within County Periodicals
[Reserved for Product Description]
Outside County Periodicals
[Reserved for Product Description]
Package Services
[Reserved for Class Description]
Single-Piece Parcel Post
[Reserved for Product Description]
Inbound Surface Parcel Post (at UPU rates)
[Reserved for Product Description]
Bound Printed Matter Flats
[Reserved for Product Description]
Bound Printed Matter Parcels
[Reserved for Product Description]
Media Mail/Library Mail
[Reserved for Product Description]
Special Services
[Reserved for Class Description]
Ancillary Services
[Reserved for Product Description]
Address Correction Service
[Reserved for Product Description]
Applications and Mailing Permits
[Reserved for Product Description]
Business Reply Mail
[Reserved for Product Description]
Bulk Parcel Return Service
[Reserved for Product Description]
Certified Mail
[Reserved for Product Description]
Certificate of Mailing
[Reserved for Product Description]
Collect on Delivery
[Reserved for Product Description]
Delivery Confirmation
[Reserved for Product Description]
Insurance
[Reserved for Product Description]
Merchandise Return Service
[Reserved for Product Description]
Parcel Airlift (PAL)
[Reserved for Product Description]
Registered Mail
[Reserved for Product Description]
Return Receipt
[Reserved for Product Description]
Return Receipt for Merchandise
[Reserved for Product Description]
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71560
Federal Register / Vol. 73, No. 228 / Tuesday, November 25, 2008 / Rules and Regulations
Restricted Delivery
[Reserved for Product Description]
Shipper-Paid Forwarding
[Reserved for Product Description]
Signature Confirmation
[Reserved for Product Description]
Special Handling
[Reserved for Product Description]
Stamped Envelopes
[Reserved for Product Description]
Stamped Cards
[Reserved for Product Description]
Premium Stamped Stationery
[Reserved for Product Description]
Premium Stamped Cards
[Reserved for Product Description]
International Ancillary Services
[Reserved for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail
[Reserved for Product Description]
International Return Receipt
[Reserved for Product Description]
International Restricted Delivery
[Reserved for Product Description]
Address List Services
[Reserved for Product Description]
Caller Service
[Reserved for Product Description]
Change-of-Address Credit Card
Authentication
[Reserved for Product Description]
Confirm
[Reserved for Product Description]
International Reply Coupon Service
[Reserved for Product Description]
International Business Reply Mail Service
[Reserved for Product Description]
Money Orders
[Reserved for Product Description]
Post Office Box Service
[Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Class Description]
HSBC North America Holdings Inc.
Negotiated Service Agreement
[Reserved for Product Description]
Bookspan Negotiated Service Agreement
[Reserved for Product Description]
Bank of America Corporation Negotiated
Service Agreement
The Bradford Group Negotiated Service
Agreement
Part B—Competitive Products
Competitive Product List
Express Mail
Express Mail
Outbound International Expedited Services
Inbound International Expedited Services
Inbound International Expedited Services 1
(CP2008–7)
Priority Mail
Priority Mail
Outbound Priority Mail International
Inbound Air Parcel Post
Parcel Select
Parcel Return Service
International
International Priority Airlift (IPA)
International Surface Airlift (ISAL)
International Direct Sacks—M-Bags
Global Customized Shipping Services
Inbound Surface Parcel Post (at non-UPU
rates)
International Money Transfer Service
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14:39 Nov 24, 2008
Jkt 217001
International Ancillary Services
Special Services
Premium Forwarding Service
Negotiated Service Agreements
Domestic
Express Mail Contract 1 (MC2008–5)
Express Mail Contract 2 (MC2009–3 and
CP2009–4)
Parcel Return Service Contract 1 (MC2009–
1 and CP2009–2)
Priority Mail Contract 1 (MC2008–8 and
CP2008–26)
Priority Mail Contract 2 (MC2009–2 and
CP2009–3)
Priority Mail Contract 3 (MC2009–4 and
CP2009–5)
Priority Mail Contract 4 (MC2009–5 and
CP2009–6)
Outbound International
Global Expedited Package Services (GEPS)
Contracts
GEPS 1 (CP2008–5, CP2008–11, CP2008–
12, and CP2008–13, CP2008–18,
CP2008–19, CP2008–20, CP2008–21,
CP2008–22, CP2008–23, and CP2008–24)
Global Plus Contracts
Global Plus 1 (CP2008–9 and CP2008–10)
Global Plus 2 (MC2008–7, CP2008–16 and
CP2008–17)
Inbound Direct Entry Contracts with
Foreign Postal Administrations
(MC2008–6, CP2008–14 and CP2008–15)
Competitive Product Descriptions
Express Mail
[Reserved for Group Description]
Express Mail
[Reserved for Product Description]
Outbound International Expedited Services
[Reserved for Product Description]
Inbound International Expedited Services
[Reserved for Product Description]
Priority
[Reserved for Product Description]
Priority Mail
[Reserved for Product Description]
Outbound Priority Mail International
[Reserved for Product Description]
Inbound Air Parcel Post
[Reserved for Product Description]
Parcel Select
[Reserved for Group Description]
Parcel Return Service
[Reserved for Group Description]
International
[Reserved for Group Description]
International Priority Airlift (IPA)
[Reserved for Product Description]
International Surface Airlift (ISAL)
[Reserved for Product Description]
International Direct Sacks—M-Bags
[Reserved for Product Description]
Global Customized Shipping Services
[Reserved for Product Description]
International Money Transfer Service
[Reserved for Product Description]
Inbound Surface Parcel Post (at non-UPU
rates)
[Reserved for Product Description]
International Ancillary Services
[Reserved for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail
[Reserved for Product Description]
International Return Receipt
[Reserved for Product Description]
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International Restricted Delivery
[Reserved for Product Description]
International Insurance
[Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Group Description]
Domestic
[Reserved for Product Description]
Outbound International
[Reserved for Group Description]
Part C—Glossary of Terms and
Conditions [Reserved]
Part D—Country Price Lists for
International Mail [Reserved]
[FR Doc. E8–27910 Filed 11–24–08; 8:45 am]
BILLING CODE 7710–FW–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 80
[EPA–HQ–OAR–2005–0161; FRL–8723–3]
RIN 2060–AO80
Regulation of Fuels and Fuel
Additives: Modifications to Renewable
Fuel Standard Program Requirements
Correction
In rule document E8–23131 beginning
on page 57248 in the issue of Thursday,
October 2, 2008, make the following
correction:
§ 80.1127
[Corrected]
On page 57255, in the second column,
in § 80.1127(b)(2), the formula should
appear as follows:
Di = RVOi - [(SRINNUM)i +
(SRINNUM)i-1]
[FR Doc. Z8–23131 Filed 11–24–08; 8:45 am]
BILLING CODE 1505–01–D
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 73
[DA 08–2453; MB Docket No. 08–127; RM–
11459]
Television Broadcasting Services;
Madison, WI
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
SUMMARY: The Commission grants a
petition for rulemaking filed by WMSN
Licensee, LLC, licensee of station
WMSN–DT, to substitute DTV channel
49 for post-transition DTV channel 11 at
Madison, Wisconsin.
DATES: The channel substitution is
effective December 26, 2008.
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]]>Agencies
[Federal Register Volume 73, Number 228 (Tuesday, November 25, 2008)]
[Rules and Regulations]
[Pages 71557-71560]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27910]
=======================================================================
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POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009-5 and CP2009-6; Order No. 135]
Administrative Practice and Procedure, Postal Service
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission is adding Priority Mail Contract 4 to the
Competitive Product List. This action is consistent with changes in a
recent law governing postal operations and a related Postal Service
request. Republication of the lists of market dominant and competitive
products is also consistent with new requirements in the law.
DATES: Effective November 25, 2008.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at https://www.prc.gov.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 and stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 73 FR 66077 (November 6,
2008).
The Postal Service seeks to add a new product identified as
Priority Mail
[[Page 71558]]
Contract 4 to the Competitive Product List. For reasons discussed
below, the Commission approves the Request.
I. Background
On October 27, 2008, the Postal Service filed a formal request
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Priority
Mail Contract 4 to the Competitive Product List. The Postal Service
asserts that the Priority Mail Contract 4 product is a competitive
product ``not of general applicability'' within the meaning of 39
U.S.C. 3632(b)(3). This Request has been assigned Docket No. MC2009-
5.\1\
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\1\ Request of the United States Postal Service to Add Priority
Mail Contract 4 to Competitive Product List and Notice of
Establishment of Rates and Class Not of General Applicability,
October 27, 2008 (Request).
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The Postal Service contemporaneously filed a contract related to
the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR
3015.5. The contract has been assigned Docket No. CP2009-6.
In support of its Request, the Postal Service filed the following
materials: (1) A redacted version of the Governors' Decision
authorizing the new product which also includes an analysis of the
Priority Mail Contract 4; \2\ (2) a redacted version of the contract,
which, among other things, provides that the contract will expire 2
years from the effective date, which is proposed to be 1 day after the
Commission issues all regulatory approvals; \3\ (3) requested changes
in the Mail Classification Schedule product list; \4\ (4) a Statement
of Supporting Justification as required by 39 CFR 3020.32; \5\ and (5)
certification of compliance with 39 U.S.C. 3633(a).\6\
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\2\ Attachment A to the Request. The analysis that accompanies
the Governors' Decision notes, among other things, that the contract
is not risk free, but concludes that the risks are manageable. See
also Second Errata to Request of the United States Postal Service to
Add Priority Mail Contract 4 to Competitive Product List and Notice
of Establishment of Rates and Class Not of General Applicability,
October 30, 2008. The Postal Service subsequently revised its
analysis. See Third Errata to Request of the United States Postal
Service to Add Priority Mail Contract 4 to Competitive Product List
and Notice of Establishment of Rates and Class Not of General
Applicability, November 18, 2008.
\3\ Attachment B to the Request.
\4\ Attachment C to the Request.
\5\ Attachment D to the Request.
\6\ Attachment E to the Request.
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In the Statement of Supporting Justification, Kim Parks, Manager,
Sales and Communications, Expedited Shipping, asserts that the service
to be provided under the contract will cover its attributable costs,
make a positive contribution to institutional costs, and increase
contribution toward the requisite 5.5 percent of the Postal Service's
total institutional costs. Request, Attachment D, at 1. W. Ashley
Lyons, Manager, Corporate Financial Planning, Finance Department,
certifies that the contract complies with 39 U.S.C. 3633(a). See id.
Attachment E.
The Postal Service filed much of the supporting materials,
including the Governors' Decision and the specific Priority Mail
Contract 4, under seal. In its Request, the Postal Service maintains
that the contract and related financial information, including the
customer's name and the accompanying analyses that provide prices,
terms, conditions, and financial projections, should remain under seal.
Id. at 2.
In Order No. 124, the Commission gave notice of the two dockets,
appointed a public representative, and provided the public with an
opportunity to comment.\7\
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\7\ PRC Order No. 124, Notice and Order Concerning Priority Mail
Contract 4 Negotiated Service Agreement, October 31, 2008 (Order No.
124).
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II. Comments
Comments were filed by the Public Representative.\8\ No filings
were submitted by other interested parties. The Public Representative's
comments focus principally on confidentially and pricing under the
contract. Public Representative Comments at 2-3. The Public
Representative states that the Postal Service has justified the extent
of confidentiality appropriate in this matter. Id.
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\8\ Public Representative Comments in Response to United States
Postal Service Request to Add Priority Mail Contract 4 to
Competitive Product List, November 6, 2008 (Public Representative
Comments).
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He concludes, inter alia, that the contract should generate
sufficient revenue to cover the product's attributable costs and
contribute to the recovery of total institutional costs assigned to
competitive products. Id. at 3-4.
III. Commission Analysis
The Commission has reviewed the contract, the financial analysis
provided under seal that accompanies it, and the comments filed by the
Public Representative.
Statutory requirements. The Commission's statutory responsibilities
in this instance entail assigning Priority Mail Contract 4 to either
the Market Dominant Product List or to the Competitive Product List. 39
U.S.C. 3642. As part of this responsibility, the Commission also
reviews the proposal for compliance with the Postal Accountability and
Enhancement Act (PAEA) requirements. This includes, for proposed
competitive products, a review of the provisions applicable to rates
for competitive products. 39 U.S.C. 3633.
Product list assignment. In determining whether to assign Priority
Mail Contract 4 as a product to the Market Dominant Product List or the
Competitive Product List, the Commission must consider whether
The Postal Service exercises sufficient market power that it can
effectively set the price of such product substantially above costs,
raise prices significantly, decrease quality, or decrease output,
without risk of losing a significant level of business to other
firms or offering similar products.
39 U.S.C. 3642(b)(1). If so, the product will be categorized as market
dominant. The competitive category of products shall consist of all
other products.
The Commission is further required to consider the availability and
nature of enterprises in the private sector engaged in the delivery of
the product, the views of those who use the product, and the likely
impact on small business concerns. 39 U.S.C. 3642(b)(3).
The Postal Service asserts that its bargaining position is
constrained by the existence of other shippers who can provide similar
services, thus precluding it from taking unilateral action to increase
prices without the risk of losing volume to private companies. Request,
Attachment D, at 2-3. The Postal Service also contends that it may not
decrease quality or output without risking the loss of business to
competitors that offer similar expedited delivery services. Id. It
further states that the shipper supports the addition of the contract
to the product list to effectuate the negotiated contractual terms. Id.
at 3. Finally, the Postal Service states that the market for expedited
delivery services is highly competitive and requires a substantial
infrastructure to support a national network. It indicates that large
carriers serve this market. Accordingly, the Postal Service states that
it is unaware of any small business concerns that could offer
comparable service for this customer. Id.
No commenter opposes the proposed classification of Priority Mail
Contract 4 as competitive. Having considered the statutory requirement
and the support offered by the Postal Service, the Commission finds
that Priority Mail Contract 4 is appropriately classified as a
competitive product and should be added to the Competitive Product
List.
Cost considerations. The Postal Service's filing seeks to establish
a new domestic Priority Mail product. The contract is predicated on
unit costs for major mail functions, e.g., window
[[Page 71559]]
service, mail processing, and transportation, based on the shipper's
mail characteristics.
The Postal Service contends that adding the Priority Mail Contract
4 product will result in processing Priority Mail pieces that are less
costly for the Postal Service than the average Priority Mail piece. See
id. Attachment A. It believes that its financial analysis shows that
these cost savings can be accomplished while ensuring that the contract
covers its attributable costs, does not result in subsidization of
competitive products by market dominant products, and increases
contribution from competitive products. Id., Attachment E, at 1.
Based on the data submitted and the comments received, the
Commission finds that Priority Mail Contract 4 should cover its
attributable costs (39 U.S.C. 3633(a)(2)), should not lead to the
subsidization of competitive products by market dominant products (39
U.S.C. 3633 (a)(1)), and should have a positive effect on competitive
products' contribution to institutional costs (39 U.S.C. 3633 (a)(3)).
Thus, an initial review of the proposed Priority Mail Contract 4
indicates that it comports with the provisions applicable to rates for
competitive products.
The Postal Service shall promptly notify the Commission when the
contract terminates, but no later than the actual termination date. The
Commission will then remove the contract from the Mail Classification
Schedule at the earliest possible opportunity.
In conclusion, the Commission approves Priority Mail Contract 4 as
a new product. The revision to the Competitive Product List is shown
below the signature of this order and is effective upon issuance of the
order.
IV. Ordering Paragraphs
It is Ordered:
1. Priority Mail Contract 4 (MC2009-5 and CP2009-6) is added to the
Competitive Product List as a new product under Negotiated Service
Agreements, Domestic.
2. The Postal Service shall notify the Commission of the
termination date of the contract as discussed in this order.
3. The Secretary shall arrange for the publication of this order in
the Federal Register.
List of Subjects in 39 CFR Part 3020
Administrative practice and procedure; Postal Service.
By the Commission.
Steven W. Williams,
Secretary.
0
For the reasons stated in the preamble, under the authority at 39
U.S.C. 503, the Postal Regulatory Commission amends 39 CFR part 3020 as
follows:
PART 3020--PRODUCT LISTS
0
1. The authority citation for part 3020 continues to read as follows:
Authority: 39 U.S.C. 503; 3622; 3631; 3642; 3682.
0
2. Revise Appendix A to subpart A of part 3020--Mail Classification to
read as follows:
Appendix A to Subpart A of Part 3020--Mail Classification
Schedule
Part A--Market Dominant Products
1000 Market Dominant Product List
First-Class Mail
Single-Piece Letters/Postcards
Bulk Letters/Postcards
Flats
Parcels
Outbound Single-Piece First-Class Mail International
Inbound Single-Piece First-Class Mail International
Standard Mail (Regular and Nonprofit)
High Density and Saturation Letters
High Density and Saturation Flats/Parcels
Carrier Route
Letters
Flats
Not Flat-Machinables (NFMs)/Parcels
Periodicals
Within County Periodicals
Outside County Periodicals
Package Services
Single-Piece Parcel Post
Inbound Surface Parcel Post (at UPU rates)
Bound Printed Matter Flats
Bound Printed Matter Parcels
Media Mail/Library Mail
Special Services
Ancillary Services
International Ancillary Services
Address List Services
Caller Service
Change-of-Address Credit Card Authentication
Confirm
International Reply Coupon Service
International Business Reply Mail Service
Money Orders
Post Office Box Service
Negotiated Service Agreements
HSBC North America Holdings Inc. Negotiated Service Agreement
Bookspan Negotiated Service Agreement
Bank of America Corporation Negotiated Service Agreement
The Bradford Group Negotiated Service Agreement
Market Dominant Product Descriptions
First-Class Mail
[Reserved for Class Description]
Single-Piece Letters/Postcards
[Reserved for Product Description]
Bulk Letters/Postcards
[Reserved for Product Description]
Flats
[Reserved for Product Description]
Parcels
[Reserved for Product Description]
Outbound Single-Piece First-Class Mail International
[Reserved for Product Description]
Inbound Single-Piece First-Class Mail International
[Reserved for Product Description]
Standard Mail (Regular and Nonprofit)
[Reserved for Class Description]
High Density and Saturation Letters
[Reserved for Product Description]
High Density and Saturation Flats/Parcels
[Reserved for Product Description]
Carrier Route
[Reserved for Product Description]
Letters
[Reserved for Product Description]
Flats
[Reserved for Product Description]
Not Flat-Machinables (NFMs)/Parcels
[Reserved for Product Description]
Periodicals
[Reserved for Class Description]
Within County Periodicals
[Reserved for Product Description]
Outside County Periodicals
[Reserved for Product Description]
Package Services
[Reserved for Class Description]
Single-Piece Parcel Post
[Reserved for Product Description]
Inbound Surface Parcel Post (at UPU rates)
[Reserved for Product Description]
Bound Printed Matter Flats
[Reserved for Product Description]
Bound Printed Matter Parcels
[Reserved for Product Description]
Media Mail/Library Mail
[Reserved for Product Description]
Special Services
[Reserved for Class Description]
Ancillary Services
[Reserved for Product Description]
Address Correction Service
[Reserved for Product Description]
Applications and Mailing Permits
[Reserved for Product Description]
Business Reply Mail
[Reserved for Product Description]
Bulk Parcel Return Service
[Reserved for Product Description]
Certified Mail
[Reserved for Product Description]
Certificate of Mailing
[Reserved for Product Description]
Collect on Delivery
[Reserved for Product Description]
Delivery Confirmation
[Reserved for Product Description]
Insurance
[Reserved for Product Description]
Merchandise Return Service
[Reserved for Product Description]
Parcel Airlift (PAL)
[Reserved for Product Description]
Registered Mail
[Reserved for Product Description]
Return Receipt
[Reserved for Product Description]
Return Receipt for Merchandise
[Reserved for Product Description]
[[Page 71560]]
Restricted Delivery
[Reserved for Product Description]
Shipper-Paid Forwarding
[Reserved for Product Description]
Signature Confirmation
[Reserved for Product Description]
Special Handling
[Reserved for Product Description]
Stamped Envelopes
[Reserved for Product Description]
Stamped Cards
[Reserved for Product Description]
Premium Stamped Stationery
[Reserved for Product Description]
Premium Stamped Cards
[Reserved for Product Description]
International Ancillary Services
[Reserved for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail
[Reserved for Product Description]
International Return Receipt
[Reserved for Product Description]
International Restricted Delivery
[Reserved for Product Description]
Address List Services
[Reserved for Product Description]
Caller Service
[Reserved for Product Description]
Change-of-Address Credit Card Authentication
[Reserved for Product Description]
Confirm
[Reserved for Product Description]
International Reply Coupon Service
[Reserved for Product Description]
International Business Reply Mail Service
[Reserved for Product Description]
Money Orders
[Reserved for Product Description]
Post Office Box Service
[Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Class Description]
HSBC North America Holdings Inc. Negotiated Service Agreement
[Reserved for Product Description]
Bookspan Negotiated Service Agreement
[Reserved for Product Description]
Bank of America Corporation Negotiated Service Agreement
The Bradford Group Negotiated Service Agreement
Part B--Competitive Products
Competitive Product List
Express Mail
Express Mail
Outbound International Expedited Services
Inbound International Expedited Services
Inbound International Expedited Services 1 (CP2008-7)
Priority Mail
Priority Mail
Outbound Priority Mail International
Inbound Air Parcel Post
Parcel Select
Parcel Return Service
International
International Priority Airlift (IPA)
International Surface Airlift (ISAL)
International Direct Sacks--M-Bags
Global Customized Shipping Services
Inbound Surface Parcel Post (at non-UPU rates)
International Money Transfer Service
International Ancillary Services
Special Services
Premium Forwarding Service
Negotiated Service Agreements
Domestic
Express Mail Contract 1 (MC2008-5)
Express Mail Contract 2 (MC2009-3 and CP2009-4)
Parcel Return Service Contract 1 (MC2009-1 and CP2009-2)
Priority Mail Contract 1 (MC2008-8 and CP2008-26)
Priority Mail Contract 2 (MC2009-2 and CP2009-3)
Priority Mail Contract 3 (MC2009-4 and CP2009-5)
Priority Mail Contract 4 (MC2009-5 and CP2009-6)
Outbound International
Global Expedited Package Services (GEPS) Contracts
GEPS 1 (CP2008-5, CP2008-11, CP2008-12, and CP2008-13, CP2008-
18, CP2008-19, CP2008-20, CP2008-21, CP2008-22, CP2008-23, and
CP2008-24)
Global Plus Contracts
Global Plus 1 (CP2008-9 and CP2008-10)
Global Plus 2 (MC2008-7, CP2008-16 and CP2008-17)
Inbound Direct Entry Contracts with Foreign Postal
Administrations (MC2008-6, CP2008-14 and CP2008-15)
Competitive Product Descriptions
Express Mail
[Reserved for Group Description]
Express Mail
[Reserved for Product Description]
Outbound International Expedited Services
[Reserved for Product Description]
Inbound International Expedited Services
[Reserved for Product Description]
Priority
[Reserved for Product Description]
Priority Mail
[Reserved for Product Description]
Outbound Priority Mail International
[Reserved for Product Description]
Inbound Air Parcel Post
[Reserved for Product Description]
Parcel Select
[Reserved for Group Description]
Parcel Return Service
[Reserved for Group Description]
International
[Reserved for Group Description]
International Priority Airlift (IPA)
[Reserved for Product Description]
International Surface Airlift (ISAL)
[Reserved for Product Description]
International Direct Sacks--M-Bags
[Reserved for Product Description]
Global Customized Shipping Services
[Reserved for Product Description]
International Money Transfer Service
[Reserved for Product Description]
Inbound Surface Parcel Post (at non-UPU rates)
[Reserved for Product Description]
International Ancillary Services
[Reserved for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail
[Reserved for Product Description]
International Return Receipt
[Reserved for Product Description]
International Restricted Delivery
[Reserved for Product Description]
International Insurance
[Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Group Description]
Domestic
[Reserved for Product Description]
Outbound International
[Reserved for Group Description]
Part C--Glossary of Terms and Conditions [Reserved]
Part D--Country Price Lists for International Mail [Reserved]
[FR Doc. E8-27910 Filed 11-24-08; 8:45 am]
BILLING CODE 7710-FW-P
