Express Mail and Priority Mail Contract, 38921-38924 [E9-18737]
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Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Rules and Regulations
August 3, 2009 in Portland Harbor, ME;
and,
(3) This rule will be enforced from 6
a.m. August 7, 2009 through 6 p.m. on
August 10, 2009 in Portsmouth, NH.
(c) Regulations:
(1) In accordance with the general
regulations in § 165.23 of this part, entry
into or movement within this zone by
any person or vessel are prohibited
unless authorized by the Captain of the
Port (COTP), Sector Northern New
England or the COTP’s designated
representative.
(2) Vessel operators desiring to enter
or operate within the safety zone may
contact the COTP or the COTP’s
designated representative at telephone
number 207–767–0303 or designated
representative on VHF Channel 13
(156.7 MHz) or VHF channel 16 (156.8
MHz) to seek permission to do so. If
permission is granted, all persons and
vessels must comply with the
instructions provided by the COTP or
the COTP’s designated representative.
(d) Definitions.
(1) Designated representative means a
Coast Guard Patrol Commander,
including a Coast Guard coxswain, petty
officer, or other officer operating a Coast
Guard vessel and a Federal, State, or
local law enforcement officer designated
by or assisting the Captain of the Port
(COTP).
202–789–6820 or
stephen.sharfman@prc.gov.
Regulatory
History, 74 FR 33482 (July 13, 2009).
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 7 to the
Competitive Product List. For the
reasons discussed below, the
Commission approves the Request.
II. Background
Postal Regulatory Commission.
ACTION: Final rule.
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 7 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 7
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. MC2009–32.
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. CP2009–43.
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 7
and certification of the Governors’
vote; 4 (2) a redacted version of the
SUMMARY: The Commission is adding
Express Mail & Priority Mail Contract 7
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
under the law.
DATES: Effective August 5, 2009 and is
applicable beginning July 27, 2009.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
1 Request of the United States Postal Service to
Add Express Mail & Priority Mail Contract 7 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 7 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 7, July 8, 2009 (Revised Workbooks).
4 Attachment A to the Request. The analysis that
accompanies the Governors’ Decision notes, among
Dated: July 24, 2009.
B.J. Downey, Jr.,
Commander, U.S. Coast Guard, Acting
Captain of the Port, Sector Northern New
England.
[FR Doc. E9–18631 Filed 8–4–09; 8:45 am]
BILLING CODE 4910–15–P
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009–32 and CP2009–43;
Order No. 256]
Express Mail and Priority Mail Contract
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38921
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
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. 240, 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 6 questions.10 The
information request was filed under
seal. Id. On July 20, 2009, the Postal
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.
9 PRC Order No. 240, Notice and Order
Concerning Express Mail & Priority Mail Contract
7 Negotiated Service Agreement, July 7, 2009 (Order
No. 240).
10 Chairman’s Information Request No. 1 and
Notice of Filing of Questions Under Seal, July 14,
2009 (CHIR No. 1).
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Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Rules and Regulations
Service filed its responses to CHIR No.
1.11
significant level of business to other firms
offering similar products.
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
and concludes that the Express Mail &
Priority Mail Contract 7 agreement
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.
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 7 as competitive. Having
considered the statutory requirements
and the support offered by the Postal
Service, the Commission finds that
Express Mail & Priority Mail Contract 7
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 7 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 7 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.
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 7 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 7 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
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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 7 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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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 7 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 7 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 7 (MC2009–32 and CP2009–43)
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:
■
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Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Rules and Regulations
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Appendix to Subpart A of Part 3020—
Mail Classification Schedule
Part A—Market Dominant Products
1000 Market Dominant Product List
First-Class Mail
Single-Piece Letters/Postcards
Bulk Letters/Postcards
Flats
Parcels
Outbound Single-Piece First-Class Mail
International
Inbound Single-Piece First-Class Mail
International
Standard Mail (Regular and Nonprofit)
High Density and Saturation Letters
High Density and Saturation Flats/Parcels
Carrier Route
Letters
Flats
Not Flat-Machinables (NFMs)/Parcels
Periodicals
Within County Periodicals
Outside County Periodicals
Package Services
Single-Piece Parcel Post
Inbound Surface Parcel Post (at UPU rates)
Bound Printed Matter Flats
Bound Printed Matter Parcels
Media Mail/Library Mail
Special Services
Ancillary Services
International Ancillary Services
Address List Services
Caller Service
Change-of-Address Credit Card
Authentication
Confirm
International Reply Coupon Service
International Business Reply Mail Service
Money Orders
Post Office Box Service
Negotiated Service Agreements
HSBC North America Holdings Inc.
Negotiated Service Agreement
Bookspan Negotiated Service Agreement
Bank of America Corporation Negotiated
Service Agreement
The Bradford Group Negotiated Service
Agreement
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]
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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]
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38923
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
2000 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)
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38924
Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 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)
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)
Express Mail & Priority Mail Contract 7
(MC2009–32 and CP2009–43)
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)
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
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[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. E9–18737 Filed 8–4–09; 8:45 am]
BILLING CODE 7710–FW–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 180
[EPA–HQ–OPP–2008–0889; FRL–8430–2]
Amine Salts of Alkyl (C8-C24)
Benzenesulfonic Acid
(Dimethylaminopropylamine,
Isopropylamine, Mono-, Di-, and
Triethanolamine); Exemption from the
Requirement of a Tolerance
AGENCY: Environmental Protection
Agency (EPA).
ACTION: Final rule.
This regulation establishes an
exemption from the requirement of a
tolerance for residues of amine salts of
SUMMARY:
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alkyl (C8-C24) benzenesulfonic acid
(dimethylaminopropylamine, isopro
pylamine, mono-, di-, and triethano
lamine) when used as an inert
ingredient in pesticide formulations
applied to growing crops and applied to
animals. The Joint Inerts Task Force,
Cluster Support Team Number 8,
submitted a petition to EPA under the
Federal Food, Drug, and Cosmetic Act
(FFDCA), requesting an exemption from
the requirement of a tolerance. This
regulation eliminates the need to
establish a maximum permissible level
for residues of amine salts of alkyl (C8C24) benzenesulfonic acid (dimethyl
aminopropylamine, isopropylamine,
mono-, di-, and triethanolamine).
DATES: This regulation is effective
August 5, 2009. Objections and requests
for hearings must be received on or
before October 5, 2009, and must be
filed in accordance with the instructions
provided in 40 CFR part 178 (see also
Unit I.C. of the SUPPLEMENTARY
INFORMATION).
ADDRESSES: EPA has established a
docket for this action under docket
identification (ID) number EPA–HQ–
OPP–2008–0889. All documents in the
docket are listed in the docket index
available at https://www.regulations.gov.
Although listed in the index, some
information is not publicly available,
e.g., 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 in the electronic docket at
https://www.regulations.gov, or, if only
available in hard copy, at the OPP
Regulatory Public Docket in Rm. S–
4400, One Potomac Yard (South Bldg.),
2777 S. Crystal Dr., Arlington, VA. The
Docket Facility is open from 8:30 a.m.
to 4 p.m., Monday through Friday,
excluding legal holidays. The Docket
Facility telephone number is (703) 305–
5805.
FOR FURTHER INFORMATION CONTACT:
Kerry Leifer, Registration Division
(7505P), Office of Pesticide Programs,
Environmental Protection Agency, 1200
Pennsylvania Ave., NW., Washington,
DC 20460–0001; telephone number:
(703) 308–8811; e-mail address:
leifer.kerry@epa.gov.
SUPPLEMENTARY INFORMATION:
I. General Information
A. Does this Action Apply to Me?
You may be potentially affected by
this action if you are an agricultural
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]]>Agencies
[Federal Register Volume 74, Number 149 (Wednesday, August 5, 2009)]
[Rules and Regulations]
[Pages 38921-38924]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-18737]
=======================================================================
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009-32 and CP2009-43; Order No. 256]
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
7 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 under the law.
DATES: Effective August 5, 2009 and is applicable beginning July 27,
2009.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 or stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 74 FR 33482 (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 7 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 7 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 7 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. MC2009-32.
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\1\ Request of the United States Postal Service to Add Express
Mail & Priority Mail Contract 7 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 7 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. CP2009-43.
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 7, July 8, 2009 (Revised Workbooks).
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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 7 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. 240, 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. 240, Notice and Order Concerning Express Mail
& Priority Mail Contract 7 Negotiated Service Agreement, July 7,
2009 (Order No. 240).
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III. Information Request
On July 14, 2009, the Chairman issued an information request
seeking responses to 6 questions.\10\ The information request was filed
under seal. Id. On July 20, 2009, the Postal
[[Page 38922]]
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 and concludes that the Express Mail &
Priority Mail Contract 7 agreement 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
7 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.
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
7 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 7 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 7 as competitive. Having considered the
statutory requirements and the support offered by the Postal Service,
the Commission finds that Express Mail & Priority Mail Contract 7 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 7 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 7 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 7 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 7 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 7 (MC2009-32 and CP2009-
43) 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:
[[Page 38923]]
Appendix to Subpart A of Part 3020--Mail Classification Schedule
Part A--Market Dominant Products
1000 Market Dominant Product List
First-Class Mail
Single-Piece Letters/Postcards
Bulk Letters/Postcards
Flats
Parcels
Outbound Single-Piece First-Class Mail International
Inbound Single-Piece First-Class Mail International
Standard Mail (Regular and Nonprofit)
High Density and Saturation Letters
High Density and Saturation Flats/Parcels
Carrier Route
Letters
Flats
Not Flat-Machinables (NFMs)/Parcels
Periodicals
Within County Periodicals
Outside County Periodicals
Package Services
Single-Piece Parcel Post
Inbound Surface Parcel Post (at UPU rates)
Bound Printed Matter Flats
Bound Printed Matter Parcels
Media Mail/Library Mail
Special Services
Ancillary Services
International Ancillary Services
Address List Services
Caller Service
Change-of-Address Credit Card Authentication
Confirm
International Reply Coupon Service
International Business Reply Mail Service
Money Orders
Post Office Box Service
Negotiated Service Agreements
HSBC North America Holdings Inc. Negotiated Service Agreement
Bookspan Negotiated Service Agreement
Bank of America Corporation Negotiated Service Agreement
The Bradford Group Negotiated Service Agreement
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
2000 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)
[[Page 38924]]
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)
Express Mail & Priority Mail Contract 7 (MC2009-32 and CP2009-
43)
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)
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. E9-18737 Filed 8-4-09; 8:45 am]
BILLING CODE 7710-FW-P
