New Domestic Mail Product, 6230-6233 [E9-2487]
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Federal Register / Vol. 74, No. 24 / Friday, February 6, 2009 / Rules and Regulations
Vessel openings will be provided each
day from 8 a.m. to 5 p.m. on February
5, 2009, and from April 1 to April 3,
2009, if at least two hours’ notice is
given.
The Coast Guard will inform the users
of the waterway through our Local and
Broadcast Notices to Mariners of the
opening restrictions of the draw span to
minimize transiting delays caused by
the temporary deviation.
In accordance with 33 CFR 117.35(e),
the drawbridge must return to its regular
operating schedule immediately at the
end of the designated time period. This
deviation from the operating regulations
is authorized under 33 CFR 117.35.
Dated: January 21, 2009.
Waverly W. Gregory, Jr.,
Chief, Bridge Administration Branch, Fifth
Coast Guard District.
[FR Doc. E9–2498 Filed 2–5–09; 8:45 am]
BILLING CODE 4910–15–P
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009–15 and CP2009–21;
Order No. 176]
New Domestic Mail Product
Postal Regulatory Commission.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Commission is adding
Express Mail Contract 3 to the
Competitive Product List. This action is
consistent with changes in a recent law
governing postal operations and a recent
Postal Service request. Republication of
the lists of market dominant and
competitive products is also consistent
with new requirements in the law.
DATES: Effective February 6, 2009, and
is applicable beginning January 27,
2009.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 and
stephen.sharfman@prc.gov.
Regulatory
History, 74 FR 1262 (January 12, 2009).
The Postal Service seeks to add a new
product identified as Express Mail
Contract 3 to the Competitive Product
List. For the reasons discussed below,
the Commission approves the Request.
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SUPPLEMENTARY INFORMATION:
I. Background
On December 31, 2008, the Postal
Service filed a formal request pursuant
to 39 U.S.C. 3642 and 39 CFR 3020.30
et seq. to add Express Mail Contract 3
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to the Competitive Product List.1 The
Postal Service asserts that the Express
Mail Contract 3 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. MC2009–15.
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. CP2009–21.
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
Express Mail Contract 3 and
certification of the Governors’ vote; 2 (2)
a redacted version of the contract
which, among other things, provides
that the contract will expire 1 year from
the effective date, which is proposed to
be the day 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 coverage of institutional
costs, and will 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
unredacted Governors’ Decision and the
unredacted Express Mail Contract 3,
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
1 Request of the United States Postal Service to
Add Express Mail Contract 3 to Competitive
Product List and Notice of Establishment of Rates
and Class Not of General Applicability, December
31, 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.
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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projections, should remain confidential.
Id. at 2–3. It further believes that it
would be inappropriate in this case to
redact information through the
‘‘blackout’’ method since it could
provide information or clues about the
name of the customer, the length and
breadth of price charts, the complexity
of annual adjustment mechanisms, or
other similar sensitive information.
Accordingly, it redacts the sensitive
information using ellipses. Id. at 3.
In Order No. 165, 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 states that the
Postal Service’s filing complies with
applicable Commission rules of practice
and procedure, and concludes that the
Express Mail Contract 3 agreement
comports with the requirements of title
39. Public Representative Comments at
4. He further states that the agreement
appears beneficial to the general public.
Id. at 1. He notes that the Postal Service
redacted information using ellipses
rather than by the ‘‘blackout’’ method
because the blackout method might
provide information or clues regarding
the name of the customer, the length
and breadth of the price charts, the
complexity of annual adjustment
mechanisms, or other similar sensitive
information. He believes that in this
case the increased care might be
warranted, but suggests that the
Commission address this issue in its
forthcoming rules regarding treatment of
confidential information in Docket No.
RM2008–1.
III. Commission Analysis
The Commission has reviewed the
Request, 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 Express
Mail Contract 3 to either the Market
Dominant Product List or to the
Competitive Product List. 39 U.S.C.
7 PRC Order No. 165, Notice and Order
Concerning Express Mail Contract 3 Negotiated
Service Agreement, January 5, 2009 (Order No.
165).
8 Public Representative Comments in Response to
United States Postal Service Request to Add
Express Mail Contract 3 to Competitive Product
List, January 15, 2009 (Public Representative
Comments).
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Federal Register / Vol. 74, No. 24 / Friday, February 6, 2009 / Rules and Regulations
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 Express
Mail Contract 3 as a product to the
Market Dominant Product List or the
Competitive Product List, the
Commission must consider whether
dwashington3 on PROD1PC60 with RULES
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
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,
para. (d). 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 contract partner
supports the addition of the contract to
the Competitive Product List to
effectuate the negotiated contractual
terms. Id. at para. (g). 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. at para. (h).
No commenter opposes the proposed
classification of Express Mail Contract 3
as competitive. Having considered the
statutory requirements and the support
offered by the Postal Service, the
Commission finds that Express Mail
Contract 3 is appropriately classified as
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13:50 Feb 05, 2009
Jkt 217001
a competitive product and should be
added to the Competitive Product List.
Cost considerations. The Postal
Service’s financial analysis shows that
Express Mail Contract 3 results in cost
savings 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. The contract is
predicated on unit costs for major mail
functions, e.g., window service, mail
processing, and transportation, based on
the shipper’s mail characteristics.
The Commission notes that in
evaluating costs under a prospective
contract compared to the average, the
Postal Service should take into account
all departures from average cost that
may be due to services provided under
the contract. The failure to do so, while
having no material effect on the
underlying financial analysis of the
contract in this instance, hampers the
timely review of the Postal Service’s
financial analysis. See PRC Order No.
138, November 20, 2008, at 6–7.
Based on the data submitted, the
Commission finds that Express Mail
Contract 3 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 Express
Mail Contract 3 indicates that it
comports with the provisions applicable
to rates for competitive products.
Redactions. The Public
Representative helpfully suggests that
the Postal Service’s method to redact
certain sensitive information could be
addressed in more detail in Docket No.
RM2008–1. It is the Commission’s
understanding that the Postal Service
now has the technology to use
graphical, black box redaction methods.
See Dockets No. MC2009–6 and
CP2009–7, Public Representative
Comments in Response to Order No.
125, November 10, 2008 at 10. Graphical
redactions (as opposed to ellipses) are
the most easily understandable form of
redaction.
As a general matter, it is not apparent
how graphical redaction methods could
have resulted in harm to the Postal
Service. If, nonetheless, the Postal
Service chooses to use ellipses, it
should more fully justify (under seal if
necessary) the use of that method,
including how graphical redactions
compromise the confidentiality of the
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6231
information submitted and can cause
harm to the Postal Service.9
Other considerations. The Postal
Service shall promptly notify the
Commission of the scheduled
termination date of the agreement. If the
agreement terminates earlier than
anticipated, the Postal Service shall
inform the Commission prior to the new
termination date. The Commission will
then remove the product from the Mail
Classification Schedule at the earliest
possible opportunity.
In conclusion, the Commission
approves Express Mail Contract 3 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 this order.
IV. Ordering Paragraphs
It is Ordered:
1. Express Mail Contract 3 (MC2009–
15 and CP2009–21) 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 scheduled
termination date, and update the
Commission if the termination date
changes for either 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.
Dated: January 27, 2009.
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 Schedule
to read as follows:
■
9 In this case, for example, the Postal Service
states that the use of graphical redactions could
provide information or clues on (1) the name of the
customer; (2) the length and breadth of price charts;
(3) the complexity of the annual adjustment
mechanisms; and (4) other similar sensitive
information. Request at 3. It offers no support for
its position.
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6232
Federal Register / Vol. 74, No. 24 / Friday, February 6, 2009 / Rules and Regulations
APPENDIX A TO SUBPART A OF
SUBPART A OF PART 3020—MAIL
CLASSIFICATION SCHEDULE
dwashington3 on PROD1PC60 with RULES
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
Inbound International
Canada Post—United States Postal Service
Contractual Bilateral Agreement for
Inbound
Market Dominant Services
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]
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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]
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]
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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)
Inbound International Expedited Services 2
(MC2009–10 and CP2009–12)
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)
Canada Post—United States Postal Service
Contractual Bilateral Agreement for
Inbound Competitive Services (MC2009–
8 and CP2009–9)
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)
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dwashington3 on PROD1PC60 with RULES
Federal Register / Vol. 74, No. 24 / Friday, February 6, 2009 / Rules and Regulations
Express Mail Contract 3 (MC2009–15 and
CP2009–21)
Express Mail & Priority Mail Contract 1
(MC2009–6 and CP2009–7)
Express Mail & Priority Mail Contract 2
(MC2009–12 and CP2009–14)
Express Mail & Priority Mail Contract 3
(MC2009–13 and CP2009–17)
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 Direct Contracts (MC2009–9,
CP2009–10, and CP2009–11)
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]
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Jkt 217001
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. E9–2487 Filed 2–5–09; 8:45 am]
BILLING CODE 7710–FW–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 80
[EPA–HQ–OAR–2008–0558; FRL–8771–6]
RIN 2060–AP17
Regulation of Fuels and Fuel
Additives: Gasoline and Diesel Fuel
Test Methods
Environmental Protection
Agency (EPA).
ACTION: Partial Withdrawal of Direct
Final Rule.
AGENCY:
Because EPA received
adverse comment, we are withdrawing
the provision for the allowance of an
alternative test method for olefins in
gasoline of the direct final, published on
December 8, 2008.
DATES: Effective February 6, 2009, EPA
withdraws the amendments to 40 CFR
80.46(b)(2)(i) and 40 CFR 80.46(h)(1)(iii)
published at 73 FR 74350 on December
8, 2008.
FOR FURTHER INFORMATION CONTACT: Joe
Sopata, Transportation and Regional
Programs Division, Office of
Transportation and Air Quality (Mail
Code: 6406J), Environmental Protection
Agency, 1200 Pennsylvania Avenue,
NW., 20460; telephone number: (202)
343–9034; fax number: (202) 343–2802;
e-mail address: sopata.joe@epa.gov.
SUPPLEMENTARY INFORMATION: Because
EPA received adverse comment, we are
withdrawing the provision to allow
ASTM D6550 as an alternative test
method for measuring the olefin content
of gasoline, published on December 8,
2008. We stated in that direct final rule
that if we received adverse comment by
January 7, 2008, the portions of the
direct final rule on which adverse
comments were received would not take
effect, and we would publish a timely
SUMMARY:
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6233
withdrawal of such portions of the
direct final rule in the Federal Register.
We subsequently received an adverse
comment on the following provision:
The amendments to 40 CFR
80.46(b)(2)(i) to allow ASTM D6550 as
an alternative test method for olefins in
gasoline. Because EPA received an
adverse comment, we are withdrawing
this provision, as well as 40 CFR
80.46(h)(1)(iii) which incorporates
ASTM D6550 by reference.
EPA published a parallel proposed
rule on the same day as the direct final
rule. The proposed rule invited
comment on the substance of the direct
final rule. We will address the comment
received on the portions of the direct
final rule being withdrawn today in a
subsequent final action based on the
parallel proposed rule also published on
December 8, 2008 (73 FR 74403). The
provisions for which we did not receive
adverse comment will become effective
on February 6, 2009, as provided in the
December 8, 2008, direct final rule.
Dated: February 2, 2009.
Lisa P. Jackson,
Administrator.
Accordingly, the amendments to 40
CFR 80.46(b)(2)(i) and 40 CFR
80.46(h)(1)(iii) published at 73 FR 74350
on December 8, 2008 are withdrawn and
reserved as of February 6, 2009.
■
[FR Doc. E9–2560 Filed 2–5–09; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 73
[DA 09–172; MB Docket No. 08–230; RM–
11504]
Television Broadcasting Services;
Montgomery, AL
AGENCY: Federal Communications
Commission.
ACTION: Final rule.
SUMMARY: The Commission grants a
petition for rulemaking filed by Woods
Communications Corporation, the
permittee of station WCOV–DT, to
substitute DTV channel 20 for its
assigned post-transition DTV channel 16
at Montgomery, Alabama.
DATES: This rule is effective February 6,
2009.
FOR FURTHER INFORMATION CONTACT:
Adrienne Y. Denysyk, Media Bureau,
(202) 418–1600.
SUPPLEMENTARY INFORMATION: This is a
synopsis of the Commission’s Report
and Order, MB Docket No. 08–230,
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]]>Agencies
[Federal Register Volume 74, Number 24 (Friday, February 6, 2009)]
[Rules and Regulations]
[Pages 6230-6233]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2487]
=======================================================================
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009-15 and CP2009-21; Order No. 176]
New Domestic Mail Product
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission is adding Express Mail Contract 3 to the
Competitive Product List. This action is consistent with changes in a
recent law governing postal operations and a recent Postal Service
request. Republication of the lists of market dominant and competitive
products is also consistent with new requirements in the law.
DATES: Effective February 6, 2009, and is applicable beginning January
27, 2009.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 and stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 74 FR 1262 (January 12,
2009).
The Postal Service seeks to add a new product identified as Express
Mail Contract 3 to the Competitive Product List. For the reasons
discussed below, the Commission approves the Request.
I. Background
On December 31, 2008, the Postal Service filed a formal request
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Express
Mail Contract 3 to the Competitive Product List.\1\ The Postal Service
asserts that the Express Mail Contract 3 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. MC2009-15.
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\1\ Request of the United States Postal Service to Add Express
Mail Contract 3 to Competitive Product List and Notice of
Establishment of Rates and Class Not of General Applicability,
December 31, 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. CP2009-21.
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 Express
Mail Contract 3 and certification of the Governors' vote; \2\ (2) a
redacted version of the contract which, among other things, provides
that the contract will expire 1 year from the effective date, which is
proposed to be the day 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.
\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 coverage of institutional costs, and
will 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 unredacted Governors' Decision and the unredacted Express
Mail Contract 3, 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 confidential. Id. at 2-3. It further believes that it would be
inappropriate in this case to redact information through the
``blackout'' method since it could provide information or clues about
the name of the customer, the length and breadth of price charts, the
complexity of annual adjustment mechanisms, or other similar sensitive
information. Accordingly, it redacts the sensitive information using
ellipses. Id. at 3.
In Order No. 165, 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. 165, Notice and Order Concerning Express Mail
Contract 3 Negotiated Service Agreement, January 5, 2009 (Order No.
165).
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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
states that the Postal Service's filing complies with applicable
Commission rules of practice and procedure, and concludes that the
Express Mail Contract 3 agreement comports with the requirements of
title 39. Public Representative Comments at 4. He further states that
the agreement appears beneficial to the general public. Id. at 1. He
notes that the Postal Service redacted information using ellipses
rather than by the ``blackout'' method because the blackout method
might provide information or clues regarding the name of the customer,
the length and breadth of the price charts, the complexity of annual
adjustment mechanisms, or other similar sensitive information. He
believes that in this case the increased care might be warranted, but
suggests that the Commission address this issue in its forthcoming
rules regarding treatment of confidential information in Docket No.
RM2008-1.
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\8\ Public Representative Comments in Response to United States
Postal Service Request to Add Express Mail Contract 3 to Competitive
Product List, January 15, 2009 (Public Representative Comments).
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III. Commission Analysis
The Commission has reviewed the Request, 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 Express Mail Contract 3 to either the
Market Dominant Product List or to the Competitive Product List. 39
U.S.C.
[[Page 6231]]
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 Express
Mail Contract 3 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 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, para. (d). 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 contract partner supports the addition of the
contract to the Competitive Product List to effectuate the negotiated
contractual terms. Id. at para. (g). 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. at para. (h).
No commenter opposes the proposed classification of Express Mail
Contract 3 as competitive. Having considered the statutory requirements
and the support offered by the Postal Service, the Commission finds
that Express Mail Contract 3 is appropriately classified as a
competitive product and should be added to the Competitive Product
List.
Cost considerations. The Postal Service's financial analysis shows
that Express Mail Contract 3 results in cost savings 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. The contract is
predicated on unit costs for major mail functions, e.g., window
service, mail processing, and transportation, based on the shipper's
mail characteristics.
The Commission notes that in evaluating costs under a prospective
contract compared to the average, the Postal Service should take into
account all departures from average cost that may be due to services
provided under the contract. The failure to do so, while having no
material effect on the underlying financial analysis of the contract in
this instance, hampers the timely review of the Postal Service's
financial analysis. See PRC Order No. 138, November 20, 2008, at 6-7.
Based on the data submitted, the Commission finds that Express Mail
Contract 3 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 Express
Mail Contract 3 indicates that it comports with the provisions
applicable to rates for competitive products.
Redactions. The Public Representative helpfully suggests that the
Postal Service's method to redact certain sensitive information could
be addressed in more detail in Docket No. RM2008-1. It is the
Commission's understanding that the Postal Service now has the
technology to use graphical, black box redaction methods. See Dockets
No. MC2009-6 and CP2009-7, Public Representative Comments in Response
to Order No. 125, November 10, 2008 at 10. Graphical redactions (as
opposed to ellipses) are the most easily understandable form of
redaction.
As a general matter, it is not apparent how graphical redaction
methods could have resulted in harm to the Postal Service. If,
nonetheless, the Postal Service chooses to use ellipses, it should more
fully justify (under seal if necessary) the use of that method,
including how graphical redactions compromise the confidentiality of
the information submitted and can cause harm to the Postal Service.\9\
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\9\ In this case, for example, the Postal Service states that
the use of graphical redactions could provide information or clues
on (1) the name of the customer; (2) the length and breadth of price
charts; (3) the complexity of the annual adjustment mechanisms; and
(4) other similar sensitive information. Request at 3. It offers no
support for its position.
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Other considerations. The Postal Service shall promptly notify the
Commission of the scheduled termination date of the agreement. If the
agreement terminates earlier than anticipated, the Postal Service shall
inform the Commission prior to the new termination date. The Commission
will then remove the product from the Mail Classification Schedule at
the earliest possible opportunity.
In conclusion, the Commission approves Express Mail Contract 3 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
this order.
IV. Ordering Paragraphs
It is Ordered:
1. Express Mail Contract 3 (MC2009-15 and CP2009-21) 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 scheduled
termination date, and update the Commission if the termination date
changes for either 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.
Dated: January 27, 2009.
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
Schedule to read as follows:
[[Page 6232]]
APPENDIX A TO SUBPART A OF 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
Inbound International
Canada Post--United States Postal Service Contractual Bilateral
Agreement for Inbound
Market Dominant Services
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]
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)
Inbound International Expedited Services 2 (MC2009-10 and
CP2009-12)
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)
Canada Post--United States Postal Service Contractual Bilateral
Agreement for Inbound Competitive Services (MC2009-8 and CP2009-9)
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)
[[Page 6233]]
Express Mail Contract 3 (MC2009-15 and CP2009-21)
Express Mail & Priority Mail Contract 1 (MC2009-6 and CP2009-7)
Express Mail & Priority Mail Contract 2 (MC2009-12 and CP2009-
14)
Express Mail & Priority Mail Contract 3 (MC2009-13 and CP2009-
17)
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 Direct Contracts (MC2009-9, CP2009-10, and CP2009-11)
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. E9-2487 Filed 2-5-09; 8:45 am]
BILLING CODE 7710-FW-P
