Express Mail and Priority Mail Contract, 38533-38536 [E9-18593]

Download as PDF Federal Register / Vol. 74, No. 148 / Tuesday, August 4, 2009 / Rules and Regulations Competitive Product List. For the reasons discussed below, the Commission approves the Request. PART 351—PROCEEDINGS 1. The authority citation for part 351 is revised to read as follows: ■ Authority: 17 U.S.C. 803. 2. Part 351 is amended by adding § 351.15 to read as follows: ■ § 351.15 Remand. In the event of a remand from the United States Court of Appeals for the District of Columbia Circuit of a final determination of the Copyright Royalty Judges, the parties to the proceeding shall within 45 days from the issuance of the mandate from the Court of Appeals file with the Judges written proposals for the conduct and schedule of the resolution of the remand. Dated: July 16, 2009. James Scott Sledge, U.S. Chief Copyright Royalty Judge. James H. Billington, The Librarian of Congress. [FR Doc. E9–18462 Filed 8–3–09; 8:45 am] BILLING CODE 1410–72–P POSTAL REGULATORY COMMISSION 39 CFR Part 3020 [Docket Nos. MC2009–31 and CP2009–42; Order No. 255] Express Mail and Priority Mail Contract Postal Regulatory Commission. ACTION: Final rule. AGENCY: SUMMARY: The Commission is adding Express Mail & Priority Mail Contract 6 to the Competitive Product List. This action is consistent with changes in a recent law governing postal operations. Republication of the lists of market dominant and competitive products is also consistent with new requirements in the law. DATES: Effective August 4, 2009 and is applicable beginning July 27, 2009. FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 202–789–6820 and stephen.sharfman@prc.gov. Regulatory History, 74 FR 33481 (July 13, 2009). rmajette on DSK29S0YB1PROD with RULES SUPPLEMENTARY INFORMATION: I. Introduction II. Background III. Information Request IV. Comments V. Commission Analysis VI. Ordering Paragraphs I. Introduction The Postal Service seeks to add a new product identified as Express Mail & Priority Mail Contract 6 to the VerDate Nov<24>2008 15:40 Aug 03, 2009 Jkt 217001 II. Background On July 2, 2009, 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 & Priority Mail Contract 6 to the Competitive Product List.1 On July 6, 2009, the Postal Service filed a revised version of its filing which includes attachments inadvertently omitted from the July 2, 2009 request.2 The Postal Service asserts that the Express Mail & Priority Mail Contract 6 product is a competitive product ‘‘not of general applicability’’ within the meaning of 39 U.S.C. 3632(b)(3). Id. at 1. The Request has been assigned Docket No. MC2009–31. 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. Id. The contract has been assigned Docket No. CP2009–42. On July 8, 2009, the Postal Service filed under seal revised versions of the financial analysis workbooks originally filed under seal on July 2, 2009.3 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 & Priority Mail Contract 6 and certification of the Governors’ vote; 4 (2) a redacted version of the contract which, among other things, provides that the contract will expire 3 years from the effective date, which is proposed to be 1 day after the Commission issues all regulatory approvals; 5 (3) requested changes in the Mail classification Schedule product list; 6 (4) a Statement of Supporting Justification as required by 39 CFR 3020.32; 7 and (5) certification of compliance with 39 U.S.C. 3633(a).8 1 Request of the United States Postal Service to Add Express Mail & Priority Mail Contract 6 to Competitive Product List and Notice of Establishment of Rates and Class Not of General Applicability, July 2, 2009. 2 Errata to Request of the United States Postal Service to Add Express Mail & Priority Mail Contract 6 to Competitive Product List and Notice of Establishment of Rates and Class Not of General Applicability, July 6, 2009 (Request). 3 See Notice of the United States Postal Service of Filing Under Seal of Revised Financial Analysis Workbooks for Express Mail & Priority Mail Contract 6, July 8, 2009 (Revised Workbooks). 4 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. 5 Attachment B to the Request. 6 Attachment C to the Request. 7 Attachment D to the Request. 8 Attachment E to the Request. PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 38533 In the Statement of Supporting Justification, Mary Prince Anderson, 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. Id., Attachment D. Thus, Ms. Anderson contends there will be no issue of subsidization of competitive products by market dominant products as a result of this contract. Id. W. Ashley Lyons, Manager, Regulatory Reporting and Cost Analysis, 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 contract, 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. In Order No. 239, the Commission gave notice of the two dockets, appointed a public representative, and provided the public with an opportunity to comment.9 III. Information Request On July 14, 2009, the Chairman issued an information request seeking responses to six questions.10 The information request was filed under seal. Id. On July 20, 2009, the Postal Service filed its responses to CHIR No. 1.11 IV. Comments Comments were filed by the Public Representative.12 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 9 PRC Order No. 239, Notice and Order Concerning Express Mail & Priority Mail Contract 6 Negotiated Service Agreement, July 7, 2009 (Order No. 239). 10 Chairman’s Information Request No. 1 and Notice of Filing of Questions under Seal, July 14, 2009 (CHIR No.1). 11 See Notice of the United States Postal Service of Filing Response to Chairman’s Information Request No.1 Under Seal, July 20, 2009 (Response to CHIR No. 1). 12 Public Representative Comments in Response to United States Postal Service Request to Add Express Mail & Priority Mail Contract 6 to Competitive Product List and Notice of Establishment of Rates and Class Not of General Applicability, July 15, 2009 (Public Representative Comments). E:\FR\FM\04AUR1.SGM 04AUR1 38534 Federal Register / Vol. 74, No. 148 / Tuesday, August 4, 2009 / Rules and Regulations and concludes that the Express Mail & Priority Mail Contract 6 agreements comports with the requirements of title 39. Id. at 3–4. He further states that the agreement appears beneficial to the general public. Id. at 1. The Public Representative notes that the Postal Service has provided adequate justification for maintaining confidentiality in this case. Id. at 2–3. He also points out several contractual provisions that he believes are mutually beneficial to the parties and general public. Id. at 3. V. Commission Analysis The Commission has reviewed the Request, the contract, the financial analysis provided under seal, the Revised Workbooks, the Response to CHIR No. 1, and the comments filed by the Public Representative. Statutory requirements. The Commission’s statutory responsibilities in this instance entail assigning Express Mail & Priority Mail Contract 6 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 Express Mail & Priority Mail Contract 6 as a product to the Market Dominant Product List or the Competitive Product List, the Commission must consider whether rmajette on DSK29S0YB1PROD 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 VerDate Nov<24>2008 15:40 Aug 03, 2009 Jkt 217001 companies. Request, Attachment D, at 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 & Priority Mail Contract 6 as competitive. Having considered the statutory requirements and the support offered by the Postal Service, the Commission finds that Express Mail & Priority Mail Contract 6 is appropriately classified as a competitive product and should be added to the Competitive Product List. Cost considerations. The Postal Service presents a financial analysis showing that Express Mail & Priority Mail Contract 6 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. Based on the data submitted, the Commission finds that Express Mail & Priority Mail Contract 6 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 proposed Express Mail & Priority Mail Contract 6 indicates that it comports with the provisions applicable to rates for competitive products. 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 & Priority Mail PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 Contract 6 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. VI. Ordering Paragraphs It is ordered: 1. Express Mail & Priority Mail Contract 6 (MC2009–31 and CP2009–42) 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 termination occurs prior to that date, 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. Issued: July 27, 2009. By the Commission. Judith M. Grady, Acting 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: ■ 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 E:\FR\FM\04AUR1.SGM 04AUR1 rmajette on DSK29S0YB1PROD with RULES Federal Register / Vol. 74, No. 148 / Tuesday, August 4, 2009 / Rules and Regulations 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] VerDate Nov<24>2008 15:40 Aug 03, 2009 Jkt 217001 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 PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 38535 [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 Royal Mail Group Inbound Air Parcel Post Agreement 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) 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) Express Mail & Priority Mail Contract 4 (MC2009–17 and CP2009–24) Express Mail & Priority Mail Contract 5 (MC2009–18 and CP2009–25) Express Mail & Priority Mail Contract 6 (MC2009–31 and CP2009–42) 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) Priority Mail Contract 5 (MC2009–21 and CP2009–26) Priority Mail Contract 6 (MC2009–25 and CP2009–30) Priority Mail Contract 7 (MC2009–25 and CP2009–31) E:\FR\FM\04AUR1.SGM 04AUR1 rmajette on DSK29S0YB1PROD with RULES 38536 Federal Register / Vol. 74, No. 148 / Tuesday, August 4, 2009 / Rules and Regulations Priority Mail Contract 8 (MC2009–25 and CP2009–32) Priority Mail Contract 9 (MC2009–25 and CP2009–33) Priority Mail Contract 10 (MC2009–25 and CP2009–34) Priority Mail Contract 11 (MC2009–27 and CP2009–37) Priority Mail Contract 12 (MC2009–28 and CP2009–38) Priority Mail Contract 13 (MC2009–29 and CP2009–39) Priority Mail Contract 14 (MC2009–30 and CP2009–40) 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 International Inbound Direct Entry Contracts with Foreign Postal Administrations (MC2008–6, CP2008–14 and CP2008–15) International Business Reply Service Competitive Contract 1 (MC2009–14 and CP2009–20) 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] VerDate Nov<24>2008 15:40 Aug 03, 2009 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. E9–18593 Filed 8–3–09; 8:45 am] BILLING CODE 7710–FW–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R03–OAR–2009–0033; FRL–8939–7] Approval and Promulgation of Air Quality Implementation Plans; West Virginia; Clean Air Interstate Rule AGENCY: Environmental Protection Agency (EPA). ACTION: Final rule. SUMMARY: EPA is approving a State Implementation Plan (SIP) revision submitted by the State of West Virginia. This revision establishes budget trading programs for nitrogen oxides (NOX) annual, NOx ozone season, and sulfur dioxides (SO2) annual emissions to address the requirements of EPA’s Clean Air Interstate Rule (CAIR), and recodifies and revises provisions pertaining to internal combustion engines and cement kilns that are subject to the NOX SIP Call. West Virginia will meet its CAIR requirements by participating in the EPA-administered regional cap-andtrade program for NOX annual, NOX ozone season, and SO2 annual emissions. EPA is determining that the SIP revision fully implements the CAIR requirements for West Virginia. Although the D.C. Circuit found CAIR to be flawed, the rule was remanded without vacatur and thus remains in place. Thus, EPA is continuing to take action on CAIR SIPs as appropriate. CAIR, as promulgated, requires States to reduce emissions of SO2 and NOX that significantly contribute to, or interfere with maintenance of, the national ambient air quality standards (NAAQS) for fine particulates and/or ozone in any downwind State. CAIR establishes budgets for SO2 and NOX for States that contribute significantly to nonattainment in downwind States and PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 requires the significantly contributing States to submit SIP revisions that implement these budgets. States have the flexibility to choose which control measures to adopt to achieve the budgets, including participation in EPAadministered cap-and-trade programs addressing SO2, NOX annual, and NOX ozone season emissions. In the SIP revision that EPA is approving, West Virginia will meet CAIR requirements by participating in these cap-and-trade programs. EPA is approving the SIP revision, as interpreted and clarified herein, as fully implementing the CAIR requirements for West Virginia. Consequently, this action will also cause the CAIR Federal Implementation Plans (CAIR FIPs) concerning SO2, NOX annual, and NOX ozone season emissions by West Virginia sources to be automatically withdrawn. DATES: Effective Date: The final rule is effective on August 4, 2009. ADDRESSES: EPA has established a docket for this action under Docket ID Number EPA–R03–OAR–2009–0033. All documents in the docket are listed in the https://www.regulations.gov Web site. Although listed in the electronic docket, some information is not publicly available, i.e., confidential business information (CBI) or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically through https://www.regulations.gov or in hard copy for public inspection during normal business hours at the Air Protection Division, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103. Copies of the State submittal are available at the West Virginia Department of Environmental Protection, Division of Air Quality, 601 57th Street, SE., Charleston, WV 25304. FOR FURTHER INFORMATION CONTACT: Marilyn Powers, (215) 814–2308, or by e-mail at powers.marilyn@epa.gov. SUPPLEMENTARY INFORMATION: Table of Contents I. What Action Did EPA Propose? II. Summary of West Virginia SIP Revision III. Final Action IV. What Is the Effective Date? V. Statutory and Executive Order Reviews I. What Action Did EPA Propose? On June 11, 2009 (74 FR 27731), EPA published a notice of proposed rulemaking (NPR) for the State of West Virginia. The NPR proposed approval of a revision to the West Virginia SIP that E:\FR\FM\04AUR1.SGM 04AUR1

Agencies

[Federal Register Volume 74, Number 148 (Tuesday, August 4, 2009)]
[Rules and Regulations]
[Pages 38533-38536]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-18593]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3020

[Docket Nos. MC2009-31 and CP2009-42; Order No. 255]


Express Mail and Priority Mail Contract

AGENCY: Postal Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Commission is adding Express Mail & Priority Mail Contract 
6 to the Competitive Product List. This action is consistent with 
changes in a recent law governing postal operations. Republication of 
the lists of market dominant and competitive products is also 
consistent with new requirements in the law.

DATES: Effective August 4, 2009 and is applicable beginning July 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 33481 (July 13, 
2009).

I. Introduction
II. Background
III. Information Request
IV. Comments
V. Commission Analysis
VI. Ordering Paragraphs

I. Introduction

    The Postal Service seeks to add a new product identified as Express 
Mail & Priority Mail Contract 6 to the Competitive Product List. For 
the reasons discussed below, the Commission approves the Request.

II. Background

    On July 2, 2009, 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 & 
Priority Mail Contract 6 to the Competitive Product List.\1\ On July 6, 
2009, the Postal Service filed a revised version of its filing which 
includes attachments inadvertently omitted from the July 2, 2009 
request.\2\ The Postal Service asserts that the Express Mail & Priority 
Mail Contract 6 product is a competitive product ``not of general 
applicability'' within the meaning of 39 U.S.C. 3632(b)(3). Id. at 1. 
The Request has been assigned Docket No. MC2009-31.
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    \1\ Request of the United States Postal Service to Add Express 
Mail & Priority Mail Contract 6 to Competitive Product List and 
Notice of Establishment of Rates and Class Not of General 
Applicability, July 2, 2009.
    \2\ Errata to Request of the United States Postal Service to Add 
Express Mail & Priority Mail Contract 6 to Competitive Product List 
and Notice of Establishment of Rates and Class Not of General 
Applicability, July 6, 2009 (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. Id. The contract has been assigned Docket No. CP2009-42.
    On July 8, 2009, the Postal Service filed under seal revised 
versions of the financial analysis workbooks originally filed under 
seal on July 2, 2009.\3\
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    \3\ See Notice of the United States Postal Service of Filing 
Under Seal of Revised Financial Analysis Workbooks for Express Mail 
& Priority Mail Contract 6, July 8, 2009 (Revised Workbooks).
---------------------------------------------------------------------------

    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 & Priority Mail Contract 6 and certification of the Governors' 
vote; \4\ (2) a redacted version of the contract which, among other 
things, provides that the contract will expire 3 years from the 
effective date, which is proposed to be 1 day after the Commission 
issues all regulatory approvals; \5\ (3) requested changes in the Mail 
classification Schedule product list; \6\ (4) a Statement of Supporting 
Justification as required by 39 CFR 3020.32; \7\ and (5) certification 
of compliance with 39 U.S.C. 3633(a).\8\
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    \4\ 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.
    \5\ Attachment B to the Request.
    \6\ Attachment C to the Request.
    \7\ Attachment D to the Request.
    \8\ Attachment E to the Request.
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    In the Statement of Supporting Justification, Mary Prince Anderson, 
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. Id., Attachment D. Thus, Ms. 
Anderson contends there will be no issue of subsidization of 
competitive products by market dominant products as a result of this 
contract. Id. W. Ashley Lyons, Manager, Regulatory Reporting and Cost 
Analysis, 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 
contract, 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.
    In Order No. 239, the Commission gave notice of the two dockets, 
appointed a public representative, and provided the public with an 
opportunity to comment.\9\
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    \9\ PRC Order No. 239, Notice and Order Concerning Express Mail 
& Priority Mail Contract 6 Negotiated Service Agreement, July 7, 
2009 (Order No. 239).
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III. Information Request

    On July 14, 2009, the Chairman issued an information request 
seeking responses to six questions.\10\ The information request was 
filed under seal. Id. On July 20, 2009, the Postal Service filed its 
responses to CHIR No. 1.\11\
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    \10\ Chairman's Information Request No. 1 and Notice of Filing 
of Questions under Seal, July 14, 2009 (CHIR No.1).
    \11\ See Notice of the United States Postal Service of Filing 
Response to Chairman's Information Request No.1 Under Seal, July 20, 
2009 (Response to CHIR No. 1).
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IV. Comments

    Comments were filed by the Public Representative.\12\ 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

[[Page 38534]]

and concludes that the Express Mail & Priority Mail Contract 6 
agreements comports with the requirements of title 39. Id. at 3-4. He 
further states that the agreement appears beneficial to the general 
public. Id. at 1.
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    \12\ Public Representative Comments in Response to United States 
Postal Service Request to Add Express Mail & Priority Mail Contract 
6 to Competitive Product List and Notice of Establishment of Rates 
and Class Not of General Applicability, July 15, 2009 (Public 
Representative Comments).
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    The Public Representative notes that the Postal Service has 
provided adequate justification for maintaining confidentiality in this 
case. Id. at 2-3. He also points out several contractual provisions 
that he believes are mutually beneficial to the parties and general 
public. Id. at 3.

V. Commission Analysis

    The Commission has reviewed the Request, the contract, the 
financial analysis provided under seal, the Revised Workbooks, the 
Response to CHIR No. 1, and the comments filed by the Public 
Representative.
    Statutory requirements. The Commission's statutory responsibilities 
in this instance entail assigning Express Mail & Priority Mail Contract 
6 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 Express 
Mail & Priority Mail Contract 6 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, at 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 & 
Priority Mail Contract 6 as competitive. Having considered the 
statutory requirements and the support offered by the Postal Service, 
the Commission finds that Express Mail & Priority Mail Contract 6 is 
appropriately classified as a competitive product and should be added 
to the Competitive Product List.
    Cost considerations. The Postal Service presents a financial 
analysis showing that Express Mail & Priority Mail Contract 6 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.
    Based on the data submitted, the Commission finds that Express Mail 
& Priority Mail Contract 6 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 
proposed Express Mail & Priority Mail Contract 6 indicates that it 
comports with the provisions applicable to rates for competitive 
products.
    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 & Priority Mail 
Contract 6 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.

VI. Ordering Paragraphs

    It is ordered:
    1. Express Mail & Priority Mail Contract 6 (MC2009-31 and CP2009-
42) 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 termination occurs prior 
to that date, 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.

    Issued: July 27, 2009.

    By the Commission.
Judith M. Grady,
Acting 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:

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

[[Page 38535]]

    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
    Royal Mail Group Inbound Air Parcel Post Agreement
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)
    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)
    Express Mail & Priority Mail Contract 4 (MC2009-17 and CP2009-
24)
    Express Mail & Priority Mail Contract 5 (MC2009-18 and CP2009-
25)
    Express Mail & Priority Mail Contract 6 (MC2009-31 and CP2009-
42)
    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)
    Priority Mail Contract 5 (MC2009-21 and CP2009-26)
    Priority Mail Contract 6 (MC2009-25 and CP2009-30)
    Priority Mail Contract 7 (MC2009-25 and CP2009-31)

[[Page 38536]]

    Priority Mail Contract 8 (MC2009-25 and CP2009-32)
    Priority Mail Contract 9 (MC2009-25 and CP2009-33)
    Priority Mail Contract 10 (MC2009-25 and CP2009-34)
    Priority Mail Contract 11 (MC2009-27 and CP2009-37)
    Priority Mail Contract 12 (MC2009-28 and CP2009-38)
    Priority Mail Contract 13 (MC2009-29 and CP2009-39)
    Priority Mail Contract 14 (MC2009-30 and CP2009-40)
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 International
    Inbound Direct Entry Contracts with Foreign Postal 
Administrations (MC2008-6, CP2008-14 and CP2008-15)
    International Business Reply Service Competitive Contract 1 
(MC2009-14 and CP2009-20)
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. E9-18593 Filed 8-3-09; 8:45 am]
BILLING CODE 7710-FW-P
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