Periodic Reporting, 21130-21131 [2020-07974]

Download as PDF 21130 Federal Register / Vol. 85, No. 74 / Thursday, April 16, 2020 / Proposed Rules 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. FOR FURTHER INFORMATION CONTACT: Dan Phillips, (202) 317–6995 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background The proposed regulations in the notice of proposed rulemaking, which is the subject of this correction, were issued primarily under section 807 of the Internal Revenue Code. Need for Correction As published, the notice of proposed rulemaking (REG–132529–17) contains an error that needs to be corrected. Correction of Publication Accordingly, the notice of proposed rulemaking (REG–132529–17) that is the subject of FR Doc. 2020–05701, published on April 2, 2020 (85 FR 18496), is corrected as follows: On page 18504, in the third column, the second paragraph is deleted in its entirety. Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. 2020–07562 Filed 4–15–20; 8:45 am] BILLING CODE 4830–01–P POSTAL REGULATORY COMMISSION 39 CFR Part 3050 [Docket No. RM2020–7; Order No. 5478] Periodic Reporting Postal Regulatory Commission. Notice of proposed rulemaking. AGENCY: ACTION: The Commission is acknowledging a recent filing requesting the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports (Proposal Two). This document informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: May 22, 2020. SUMMARY: Submit comments electronically via the Commission’s Filing Online system at http:// www.prc.gov. Those who cannot submit comments electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT section by telephone for advice on filing alternatives. jbell on DSKJLSW7X2PROD with PROPOSALS ADDRESSES: VerDate Sep<11>2014 16:32 Apr 15, 2020 Jkt 250001 FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: Table of Contents I. Introduction II. Proposal Two III. Notice and Comment IV. Ordering Paragraphs I. Introduction On April 7, 2020, the Postal Service filed a petition pursuant to 39 CFR 3050.11 requesting that the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports.1 The Petition identifies the proposed analytical changes filed in this docket as Proposal Two. II. Proposal Two Background. The Postal Service currently calculates unit delivery costs by rate category to provide insight into the nature of those costs at a detailed level. Petition, Proposal Two at 1. A review of those costs revealed large differences between the street time unit delivery costs for flats in Flats Sequencing System (FSS) and non-FSS zones. Id. This gap was surprising because it did not exist for the marginal times on which the costs were based. Id. The Postal Service states that upon investigation, it uncovered the source of the discrepancy between relative costs and volumes: Volume proportions from the City Carrier Street Time Study (CCSTS) data collected in FY 2013, and used in the established model, do not match the current volume proportions. Id. at 2. The shift in volume proportions has implications for calculated unit delivery costs because city carrier street time variabilities depend upon the volumes used to calculate them. Id. Failure to account for volume changes can lead to the calculation of inappropriate variabilities. Id. The Postal Service states that if a particular type of mail experiences a volume decline and the current variability calculation does not account for that decline, the volume variable cost for this type of mail will be higher than it should be, leading to 1 Petition of the United States Postal Service for the Initiation of a Proceeding to Consider Proposed Changes in Analytical Principles (Proposal Two), April 7, 2020 (Petition). The Petition was accompanied by a study supporting its proposal. See Professor Michael D. Bradley A Methodology for Updating the City Carrier Regular Delivery Variabilities*, April 7, 2020 (Bradley Report). The Postal Service also filed a notice of filing of public and non-public materials relating to Proposal Two. Notice of Filing of USPS–RM2020–7–1 and USPS– RM2020–7–NP1 and Application for Nonpublic Treatment, April 7, 2020. PO 00000 Frm 00027 Fmt 4702 Sfmt 4702 high calculated unit costs. Id. at 2–3. The Postal Service explains that ‘‘[c]hanges in the relative volumes of letter and flat mail create the need for a process of updating the regular delivery activity cost pools.’’ Id. at 3. Proposal. Proposal Two would ‘‘introduce a methodology for updating the delivery time variabilities for city carrier regular delivery time, so that they reflect changes in relative volumes.’’ 2 City carrier delivery activity cost pools are found by multiplying city carrier street time variabilities by accrued regular delivery time. Id. at 4. Each street time variability has three parts: The marginal time for the type of mail, the volume for the type of mail, and the total regular delivery time. Id. Any of the three parts can change when volume changes. Id. In updating variability, the approach underlying Proposal Two ‘‘allows for responses in all three parts due to a volume change.’’ Id. The Postal Service states that while the mean volumes used to calculate regular delivery time elasticities are typically calculated directly from the FY 2013 CCSTS data, to facilitate an update of the calculated variabilities, it is possible to ‘‘derive the mean volumes as proportions of the total average letter and flat delivered volume.’’ Id. The Postal Service clarifies that letter and flat delivered volume is the sum of the volumes of four components (mail shapes) for which delivery variabilities are calculated: delivery point sequence (DPS) mail, cased mail, FSS mail, and sequenced mail. Id. at 3–5. Consequently, the average volume for any component can be calculated ‘‘by multiplying the component’s proportion of total letter and flat delivery volume by the overall average volume.’’ Id. at 4. The Postal Service asserts that its proposed version of the mean formulation ‘‘makes it easy to update the regular delivery time variabilities using more recent volume means . . . [which are] . . . calculated by forming the needed volume proportions with the more recent data, here the FY 2019 [City Carrier Cost System] volumes.’’ 3 The Postal Service states that ‘‘the proposed new methodology would be applied again each year to achieve annual updates.’’ Id. at 1. 2 Id. at 1. A ‘‘full discussion of the research supporting the proposal’’ is provided in the Bradley Report, attached to the Petition electronically as a separate PDF file. See id. at 3. 3 Id. at 5 (footnote omitted). In a footnote, the Postal Service explains that the regular delivery time equation includes volumes from customers’ receptacles, but that it lacks recent data that would permit it to update that volume. Id. n.1. E:\FR\FM\16APP1.SGM 16APP1 Federal Register / Vol. 85, No. 74 / Thursday, April 16, 2020 / Proposed Rules Impact. To see if a recalculation of variabilities using current volumes mitigates the gap between FSS and nonFSS unit city carrier street time flats costs, the Postal Service compares these costs for FY 2019 using the old variabilities and the new variabilities. Id. at 6–7. It concludes that the updated variabilities reduce the gap between FSS and non-FSS unit street time costs for flats. Id. at 7. The reduction is in the range between 2.5 cents and 4.0 cents, depending on the mail category. Id. at 7–8. The updated variabilities also result in some changes in the unit volume variable city carrier costs for nearly all products.4 Id. at 8. For all but one domestic market dominant mail products, the change in unit volume variable costs is in the range between -0.9 cents and 0.2 cents. Id. at 10. The largest impact of Proposal Two on unit volume variable costs is observed for High Density and Saturation Flats/ Parcels, which has the unit costs fall by 1.2 cents. Id. at 9–10. For domestic competitive mail products and services, Proposal Two results in a decrease of unit volume variable costs by 0.2 cents on average. Id. at 10. III. Notice and Comment The Commission establishes Docket No. RM2020–7 for consideration of matters raised by the Petition. More information on the Petition may be accessed via the Commission’s website at http://www.prc.gov. Interested persons may submit comments on the Petition and Proposal Two no later than May 22, 2020. Pursuant to 39 U.S.C. 505, Lawrence Fenster is designated as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding. IV. Ordering Paragraphs jbell on DSKJLSW7X2PROD with PROPOSALS It is ordered: 1. The Commission establishes Docket No. RM2020–7 for consideration of the matters raised by the Petition of the United States Postal Service for the Initiation of a Proceeding to Consider Proposed Changes in Analytical Principles (Proposal Two), filed April 7, 2020. 2. Comments by interested persons in this proceeding are due no later than May 22, 2020.5 4 These costs include both office and street time cost, as well as related indirect cost. Id. at 9. 5 The Commission reminds interested persons that its revised and reorganized Rules of Practice and Procedure become effective April 20, 2020, and should be used in filings with the Commission after April 20, 2020. Beginning on that date, the rules will be available on the Commission’s website. In VerDate Sep<11>2014 16:32 Apr 15, 2020 Jkt 250001 3. Pursuant to 39 U.S.C. 505, the Commission appoints Lawrence Fenster to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this docket. 4. The Secretary shall arrange for publication of this order in the Federal Register. By the Commission. Erica A. Barker, Secretary. [FR Doc. 2020–07974 Filed 4–15–20; 8:45 am] BILLING CODE 7710–FW–P FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 76 [MB Docket Nos. 20–70, 17–105, 11–131; FCC 20–39; FRS 16644] Modernization of Media Regulation Initiative; Program Carriage Federal Communications Commission. ACTION: Proposed rule. AGENCY: In this document, the Commission seeks comment on whether to adopt changes to our rules governing the resolution of program carriage disputes between video programming vendors and multichannel video programming distributors (MVPDs) to ensure an expeditious dispute resolution process. Specifically, we propose to modify one of the time limit requirements for filing program carriage complaints in order to make it consistent with the time limits for other types of complaints. For consistency, we also propose to revise the parallel time limit requirements for filing program access, open video system (OVS), and good-faith retransmission consent complaints. We also propose to revise the effective date and review procedures of initial decisions issued by an administrative law judge (ALJ) in program carriage proceedings so they comport with the Commission’s generally applicable procedures for review of ALJ initial decisions. We propose to extend this change to program access and OVS proceedings as well. DATES: Comments due on or before May 18, 2020; reply comments due on or before June 1, 2020. SUMMARY: the meantime, the new rules can be found in Order No. 5407, which was issued on January 16, 2020. Docket No. RM2019–13, Order Reorganizing Commission Regulations and Amending Rules of Practice, January 16, 2020 (Order No. 5407). PO 00000 Frm 00028 Fmt 4702 Sfmt 4702 21131 You may submit comments, identified by MB Docket Nos. 20–70, 17–105, 11–131, by any of the following methods: D Federal Communications Commission’s website: http:// apps.fcc.gov/ecfs/. Follow the instructions for submitting comments. D People with Disabilities: Contact the FCC to request reasonable accommodations (accessible format documents, sign language interpreters, CART, etc.) by email: FCC504@fcc.gov or phone: 202–418–0530 or TTY: 202– 418–0432. For detailed instructions for submitting comments and additional information on the rulemaking process, see the SUPPLEMENTARY INFORMATION section of this document. FOR FURTHER INFORMATION CONTACT: For additional information on this proceeding, contact John Cobb, John.Cobb@fcc.gov of the Policy Division, Media Bureau, (202) 418– 2120. ADDRESSES: This is a summary of the Commission’s Further Notice of Proposed Rulemaking and Notice of Proposed Rulemaking (FNPRM), MB Docket Nos. 20–70, 17– 105, 11–131; FCC 20–39, adopted on March 31, 2020 and released on April 1, 2020. The full text of this document is available for public inspection and copying during regular business hours in the FCC Reference Center, Federal Communications Commission, 445 12th Street SW, CY–A257, Washington, DC, 20554. The full text of this document will also be available via ECFS (http:// www.fcc.gov/cgb/ecfs/). (Documents will be available electronically in ASCII, Word, and/or Adobe Acrobat.) The complete text may be purchased from the Commission’s copy contractor, 445 12th Street SW, Room CY–B402, Washington, DC 20554. To request these documents in accessible formats (computer diskettes, large print, audio recording, and Braille), send an email to fcc504@fcc.gov or call the Commission’s Consumer and Governmental Affairs Bureau at (202) 418–0530 (voice), (202) 418–0432 (TTY). SUPPLEMENTARY INFORMATION: Synopsis This Further Notice of Proposed Rulemaking and Notice of Proposed Rulemaking (FNPRM) proposes changes to the Commission’s rules governing the resolution of program carriage disputes between video programming vendors and multichannel video programming distributors (MVPDs). Specifically, we propose to modify one of the time limit requirements for filing program carriage complaints in order to make it E:\FR\FM\16APP1.SGM 16APP1

Agencies

[Federal Register Volume 85, Number 74 (Thursday, April 16, 2020)]
[Proposed Rules]
[Pages 21130-21131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07974]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2020-7; Order No. 5478]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is acknowledging a recent filing requesting the 
Commission initiate a rulemaking proceeding to consider changes to 
analytical principles relating to periodic reports (Proposal Two). This 
document informs the public of the filing, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: May 22, 2020.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Proposal Two
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On April 7, 2020, the Postal Service filed a petition pursuant to 
39 CFR 3050.11 requesting that the Commission initiate a rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports.\1\ The Petition identifies the proposed analytical 
changes filed in this docket as Proposal Two.
---------------------------------------------------------------------------

    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Two), April 7, 2020 (Petition). The 
Petition was accompanied by a study supporting its proposal. See 
Professor Michael D. Bradley A Methodology for Updating the City 
Carrier Regular Delivery Variabilities*, April 7, 2020 (Bradley 
Report). The Postal Service also filed a notice of filing of public 
and non-public materials relating to Proposal Two. Notice of Filing 
of USPS-RM2020-7-1 and USPS-RM2020-7-NP1 and Application for 
Nonpublic Treatment, April 7, 2020.
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II. Proposal Two

    Background. The Postal Service currently calculates unit delivery 
costs by rate category to provide insight into the nature of those 
costs at a detailed level. Petition, Proposal Two at 1. A review of 
those costs revealed large differences between the street time unit 
delivery costs for flats in Flats Sequencing System (FSS) and non-FSS 
zones. Id. This gap was surprising because it did not exist for the 
marginal times on which the costs were based. Id.
    The Postal Service states that upon investigation, it uncovered the 
source of the discrepancy between relative costs and volumes: Volume 
proportions from the City Carrier Street Time Study (CCSTS) data 
collected in FY 2013, and used in the established model, do not match 
the current volume proportions. Id. at 2.
    The shift in volume proportions has implications for calculated 
unit delivery costs because city carrier street time variabilities 
depend upon the volumes used to calculate them. Id. Failure to account 
for volume changes can lead to the calculation of inappropriate 
variabilities. Id. The Postal Service states that if a particular type 
of mail experiences a volume decline and the current variability 
calculation does not account for that decline, the volume variable cost 
for this type of mail will be higher than it should be, leading to high 
calculated unit costs. Id. at 2-3. The Postal Service explains that 
``[c]hanges in the relative volumes of letter and flat mail create the 
need for a process of updating the regular delivery activity cost 
pools.'' Id. at 3.
    Proposal. Proposal Two would ``introduce a methodology for updating 
the delivery time variabilities for city carrier regular delivery time, 
so that they reflect changes in relative volumes.'' \2\ City carrier 
delivery activity cost pools are found by multiplying city carrier 
street time variabilities by accrued regular delivery time. Id. at 4. 
Each street time variability has three parts: The marginal time for the 
type of mail, the volume for the type of mail, and the total regular 
delivery time. Id. Any of the three parts can change when volume 
changes. Id. In updating variability, the approach underlying Proposal 
Two ``allows for responses in all three parts due to a volume change.'' 
Id.
---------------------------------------------------------------------------

    \2\ Id. at 1. A ``full discussion of the research supporting the 
proposal'' is provided in the Bradley Report, attached to the 
Petition electronically as a separate PDF file. See id. at 3.
---------------------------------------------------------------------------

    The Postal Service states that while the mean volumes used to 
calculate regular delivery time elasticities are typically calculated 
directly from the FY 2013 CCSTS data, to facilitate an update of the 
calculated variabilities, it is possible to ``derive the mean volumes 
as proportions of the total average letter and flat delivered volume.'' 
Id. The Postal Service clarifies that letter and flat delivered volume 
is the sum of the volumes of four components (mail shapes) for which 
delivery variabilities are calculated: delivery point sequence (DPS) 
mail, cased mail, FSS mail, and sequenced mail. Id. at 3-5. 
Consequently, the average volume for any component can be calculated 
``by multiplying the component's proportion of total letter and flat 
delivery volume by the overall average volume.'' Id. at 4. The Postal 
Service asserts that its proposed version of the mean formulation 
``makes it easy to update the regular delivery time variabilities using 
more recent volume means . . . [which are] . . . calculated by forming 
the needed volume proportions with the more recent data, here the FY 
2019 [City Carrier Cost System] volumes.'' \3\ The Postal Service 
states that ``the proposed new methodology would be applied again each 
year to achieve annual updates.'' Id. at 1.
---------------------------------------------------------------------------

    \3\ Id. at 5 (footnote omitted). In a footnote, the Postal 
Service explains that the regular delivery time equation includes 
volumes from customers' receptacles, but that it lacks recent data 
that would permit it to update that volume. Id. n.1.

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[[Page 21131]]

    Impact. To see if a recalculation of variabilities using current 
volumes mitigates the gap between FSS and non-FSS unit city carrier 
street time flats costs, the Postal Service compares these costs for FY 
2019 using the old variabilities and the new variabilities. Id. at 6-7. 
It concludes that the updated variabilities reduce the gap between FSS 
and non-FSS unit street time costs for flats. Id. at 7. The reduction 
is in the range between 2.5 cents and 4.0 cents, depending on the mail 
category. Id. at 7-8.
    The updated variabilities also result in some changes in the unit 
volume variable city carrier costs for nearly all products.\4\ Id. at 
8. For all but one domestic market dominant mail products, the change 
in unit volume variable costs is in the range between -0.9 cents and 
0.2 cents. Id. at 10. The largest impact of Proposal Two on unit volume 
variable costs is observed for High Density and Saturation Flats/
Parcels, which has the unit costs fall by 1.2 cents. Id. at 9-10. For 
domestic competitive mail products and services, Proposal Two results 
in a decrease of unit volume variable costs by 0.2 cents on average. 
Id. at 10.
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    \4\ These costs include both office and street time cost, as 
well as related indirect cost. Id. at 9.
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III. Notice and Comment

    The Commission establishes Docket No. RM2020-7 for consideration of 
matters raised by the Petition. More information on the Petition may be 
accessed via the Commission's website at http://www.prc.gov. Interested 
persons may submit comments on the Petition and Proposal Two no later 
than May 22, 2020. Pursuant to 39 U.S.C. 505, Lawrence Fenster is 
designated as an officer of the Commission (Public Representative) to 
represent the interests of the general public in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2020-7 for consideration 
of the matters raised by the Petition of the United States Postal 
Service for the Initiation of a Proceeding to Consider Proposed Changes 
in Analytical Principles (Proposal Two), filed April 7, 2020.
    2. Comments by interested persons in this proceeding are due no 
later than May 22, 2020.\5\
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    \5\ The Commission reminds interested persons that its revised 
and reorganized Rules of Practice and Procedure become effective 
April 20, 2020, and should be used in filings with the Commission 
after April 20, 2020. Beginning on that date, the rules will be 
available on the Commission's website. In the meantime, the new 
rules can be found in Order No. 5407, which was issued on January 
16, 2020. Docket No. RM2019-13, Order Reorganizing Commission 
Regulations and Amending Rules of Practice, January 16, 2020 (Order 
No. 5407).
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    3. Pursuant to 39 U.S.C. 505, the Commission appoints Lawrence 
Fenster to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2020-07974 Filed 4-15-20; 8:45 am]
BILLING CODE 7710-FW-P