Periodic Reporting, 62023-62024 [2023-19363]

Download as PDF Federal Register / Vol. 88, No. 173 / Friday, September 8, 2023 / Proposed Rules firearm to another licensee, the licensee shall comply with the verification and recordkeeping requirements in § 478.94 and subpart H of part 478. * * * * * ■ 6. In § 478.125a, in paragraphs (a)(2) and (3), remove the citation ‘‘§ 478.125(e)’’ and add in its place ‘‘§§ 478.122(a), 478.123(a), or 478.125(e)’’. Dated: August 30, 2023. Merrick B. Garland, Attorney General. [FR Doc. 2023–19177 Filed 9–7–23; 8:45 am] BILLING CODE 4410–FY–P POSTAL REGULATORY COMMISSION 39 CFR Part 3050 [Docket No. RM2023–7; Order No. 6659] Periodic Reporting Postal Regulatory Commission. Notice of proposed rulemaking. AGENCY: ACTION: The Commission is conducting further proceedings and will be accepting further comments with respect to a rulemaking proceeding to consider changes to analytical principles relating to periodic reports (Proposal Two). This document invites further public comment and takes other administrative steps. DATES: Comments are due: October 16, 2023. ADDRESSES: Submit comments electronically via the Commission’s Filing Online system at https:// 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. SUMMARY: FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: lotter on DSK11XQN23PROD with PROPOSALS1 Table of Contents I. Introduction II. Proposal Two, Order No. 6659, and Direction for Further Proceedings III. Notice and Comment IV. Ordering Paragraphs I. Introduction On May 26, 2023, 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 VerDate Sep<11>2014 16:41 Sep 07, 2023 Jkt 259001 principles relating to periodic reports.1 The Petition identified the proposed analytical changes as Proposal Two. In Order No. 6659 the Commission conditionally approved Proposal Two but directed the Postal Service to propose further changes to analytical principles relating to periodic reports to address what the Commission found to be outstanding issues with respect to cost identification and attribution for interagency agreements (IAAs).2 II. Proposal Two, Order No. 6659, and Direction for Further Proceedings Background. The Postal Service Reform Act of 2022 3 modified and expanded the Postal Service’s ability to enter into IAAs to provide property and services to, or on behalf of, other government agencies. Specifically, 39 U.S.C. 3703 for the first time authorizes the Postal Service to enter into agreements with agencies of any state government, local government, or tribal government to provide property or nonpostal services to the public on behalf of such agencies for noncommercial purposes. At the same time, with respect to the Postal Service’s preexisting authority under 39 U.S.C. 411 to provide property and services to other Federal agencies, the PSRA specifies that ‘‘[t]he Postal Service may establish a program to provide property and nonpostal services to other Government [i.e., federal] agencies within the meaning of section 411 4, but only if such program provides a net contribution to the Postal Service, defined as reimbursement that covers at least 100 percent of the costs attributable . . ..’’ 39 U.S.C. 3704. Under the PSRA, the Postal Service must submit a report to the Commission after the close of each fiscal year that ‘‘analyzes costs, revenues, rates, and quality of service for each agreement or 1 Petition of the United States Postal Service for the Initiation of a Proceeding to Consider Proposed Changes in Analytical Principles (Proposal Two), May 26, 2023 (Petition). 2 Docket No. RM2023–7, Order on Analytical Principles Used in Periodic Reporting (Proposal Two), Directing the Postal Service’s Participation in Further Proceedings, and Providing Notice of Filing Attachment Under Seal, August 31, 2023 (Order No. 6659). 3 Postal Service Reform Act of 2022 (PSRA), Public Law. 117–108, 136 Stat. 1127 (2022). 4 Prior to the enactment of the PSRA, the Postal Service’s authority for these agreements was governed by 39 U.S.C. 411, which authorizes the Postal Service to ‘‘furnish property and services’’ to ‘‘Executive agencies within the meaning of [5 U.S.C. 105] and the Government Publishing Office. . . .’’ 39 U.S.C. 411. Section 105 of Title 5 of the United States Code specifies that an ‘‘ ‘Executive agency’ means an Executive department, a Government corporation, and an independent establishment’’ of the U.S. Government, as those terms are defined in 5 U.S.C. chapter 1. 5 U.S.C. 105. PO 00000 Frm 00038 Fmt 4702 Sfmt 4702 62023 substantially similar set of agreements for the provision of property or nonpostal services under section 3703 or the program as a whole under section 3704, . . . using such methodologies as the Commission may prescribe, and in sufficient detail to demonstrate compliance with the requirements of [Chapter 37 of Title 39 of the United States Code].’’ 39 U.S.C. 3705(a). Upon receiving the Postal Service’s report and providing an opportunity for public comment, the Commission must make a written determination of compliance. 39 U.S.C. 3705(e). In the Commission’s FY 2022 Annual Compliance Determination,5 the Commission directed the Postal Service to develop a proposed methodology (or methodologies) for calculating and attributing costs and revenue to IAAs authorized under 39 U.S.C. 3703 and 3704, and to initiate a rulemaking proceeding to establish such methodology (or methodologies) in accordance with 39 CFR 3050.11 by no later than May 31, 2023. Id. at 102. As directed, the Postal Service initiated the instant proceeding to propose a categorical approach to identifying costs and revenue for similar types, or groupings, of IAAs. Petition, Proposal Two at 2–3. Order No. 6659 and direction for further proceedings. In Order No. 6659 the Commission conditionally approved Proposal Two, but directed the Postal Service to propose further changes to analytical principles relating to periodic reports to address specific issues that the Commission found remained unaddressed. First, the Commission directed the Postal Service to develop a proposed change in accepted analytical principles to develop a separate line item (or line items) in the Cost and Revenue Analysis (CRA) and related workbooks to enable the attribution of costs and related revenue to IAAs. Order No. 6659 at 16. Second, for agreements with government agencies that involve the provision of both postal services and property or nonpostal services, the Commission directed the Postal Service to develop a proposed change in analytical principles to separately account for the costs and revenue for those respective portions. Id. The Commission directed the Postal Service to file proposals related to these issues by September 29, 2023. Id. The Commission will then accept comments on the Postal Service’s proposals until October 16, 2023. Id. at 18. 5 Docket No. ACR2022, Annual Compliance Determination Report, FY 2022, March 29, 2023. E:\FR\FM\08SEP1.SGM 08SEP1 62024 Federal Register / Vol. 88, No. 173 / Friday, September 8, 2023 / Proposed Rules III. Notice and Comment Docket No. RM2023–7 will remain open for consideration of matters raised in Order No. 6659. More information on this docket may be accessed via the Commission’s website at https:// www.prc.gov. Interested persons may submit comments on the Postal Service’s proposals no later than October 16, 2023. Pursuant to 39 U.S.C. 505, Manon A. Boudreault shall continue to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding. IV. Ordering Paragraphs By the Commission. Erica A. Barker, Secretary. [FR Doc. 2023–19363 Filed 9–7–23; 8:45 am] BILLING CODE 7710–FW–P POSTAL REGULATORY COMMISSION 39 CFR Part 3050 [Docket No. RM2023–9; Order No. 6652] Periodic Reporting Postal Regulatory Commission. Notice of proposed rulemaking. AGENCY: 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 Four). This document informs the public of the filing, invites public comment, and takes other administrative steps. lotter on DSK11XQN23PROD with PROPOSALS1 SUMMARY: VerDate Sep<11>2014 16:41 Sep 07, 2023 FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: Table of Contents It is ordered: 1. For purposes of periodic reporting to the Commission, the Commission conditionally approves the changes in analytical principles proposed by the Postal Service in Proposal Two. 2. Docket No. RM2023–7 will remain open for consideration of the matters raised in Order No. 6659. 3. The Postal Service shall file information addressing the issues identified in the body of this Order by September 29, 2023. 4. Comments by interested persons on the Postal Service’s proposals are due no later than October 16, 2023. 5. Pursuant to 39 U.S.C. 505, Manon A. Boudreault shall continue to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this docket. 6. The Secretary shall arrange for publication of this order in the Federal Register. ACTION: Comments are due: September 29, 2023. ADDRESSES: Submit comments electronically via the Commission’s Filing Online system at https:// 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. DATES: Jkt 259001 I. Introduction II. Proposal Four III. Notice and Comment IV. Ordering Paragraphs I. Introduction On August 28, 2023, 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 Four. II. Proposal Four Background. The Priority Mail Transportation Cost Model is used in financial projections of the expected cost coverage for negotiated service agreements (NSAs). Petition, Proposal Four at 1. The current model was introduced in Docket No. R2006–1 and is updated annually in the Annual Compliance Review (ACR), most recently in Docket No. ACR2022.2 The Postal Service states that the model disaggregates the product-level transportation costs by zone and the resulting cost per cube and cost per pound by zone are applied to a customer’s weight and zone profile in order to generate forward-looking cost projections for Priority Mail included in any NSA. Petition, Proposal Four at 1. These projections rely on prior fiscal year’s costs with inflation factors applied to reflect the expected changes in costs due to broader economic conditions during the first full year of 1 Petition of the United States Postal Service for the Initiation of a Proceeding to Consider Proposed Changes in Analytical Principles (Proposal Four), August 28, 2023 (Petition). Proposal Four is attached to the Petition. The Postal Service also filed a notice of filing of non-public material relating to Proposal Four. Notice of Filing of USPS– RM2023–9–NP1 and Application for Nonpublic Treatment, August 28, 2023. 2 Id. (citing Docket No. ACR2022, Library Reference USPS–FY22–NP27, December 29, 2022). PO 00000 Frm 00039 Fmt 4702 Sfmt 4702 the NSA. Id. The Postal Service states that, however, these projections do not reflect expected changes in costs due to Postal Service’s changing operational conditions during the first full year of the NSA. Id. Thus, the Postal Service proposes several changes to the Priority Mail Transportation Cost Model in Proposal Four to reflect these types of changes more accurately in Priority Mail transportation costs. Proposal. The Postal Service proposes several changes to the Priority Mail Transportation Cost Model. First, the Postal Service proposes a correction to the base year model to reflect that a portion of zone 6 pieces utilized distance-related surface transportation during fiscal year (FY) 2022. Id. at 2. The Postal Service states that the current model assumes that zone 6 pieces are transported entirely by air. Id. The Postal Service states that the correction is made by extending the existing methodology used for zones 1– 5 up to zone 6. Id. Second, once the correction to the base year model has been made, the Postal Service proposes the following sequence of actions to adjust the transportation costs by zone to reflect changes in the split between air and surface transportation occurring in the subsequent year due to Postal Service’s network change. Id. A. Collect the proportions of priority mail on air and surface transportation by zone from the Product Tracking and Reporting (PTR) system, for both the base year and the month most recently ended. Id. B. Compare the base year’s data with the most recent month’s data and calculate the change in the percentage of Priority Mail transported on air vis-a`-vis surface for each zone. Id. at 3. 1. If the absolute change from the base year percentage is less than five percentage points for a zone, then no adjustment to the base year costs is made. Id. 2. If the absolute change from the base year percentage is more than five percentage points for a zone, then the air and surface costs for that zone are adjusted by the following method: a. The cube-related costs are divided into air-related, distance-related surface, and non-distance-related surface. Id. The Postal Service states that air-related costs include both the air costs and the surface costs associated with a connection to air. Id. b. The weight-related costs are fully air-related. Id. c. The non-distance-related surface costs are excluded from the adjustment and remain unchanged. Id. The Postal Service states that these are generally E:\FR\FM\08SEP1.SGM 08SEP1

Agencies

POSTAL REGULATORY COMMISSION

[Federal Register Volume 88, Number 173 (Friday, September 8, 2023)]
[Proposed Rules]
[Pages 62023-62024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-19363]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2023-7; Order No. 6659]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Commission is conducting further proceedings and will be 
accepting further comments with respect to a rulemaking proceeding to 
consider changes to analytical principles relating to periodic reports 
(Proposal Two). This document invites further public comment and takes 
other administrative steps.

DATES: Comments are due: October 16, 2023.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at https://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, Order No. 6659, and Direction for Further 
Proceedings
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On May 26, 2023, 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 identified the proposed analytical 
changes as Proposal Two. In Order No. 6659 the Commission conditionally 
approved Proposal Two but directed the Postal Service to propose 
further changes to analytical principles relating to periodic reports 
to address what the Commission found to be outstanding issues with 
respect to cost identification and attribution for interagency 
agreements (IAAs).\2\
---------------------------------------------------------------------------

    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Two), May 26, 2023 (Petition).
    \2\ Docket No. RM2023-7, Order on Analytical Principles Used in 
Periodic Reporting (Proposal Two), Directing the Postal Service's 
Participation in Further Proceedings, and Providing Notice of Filing 
Attachment Under Seal, August 31, 2023 (Order No. 6659).
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II. Proposal Two, Order No. 6659, and Direction for Further Proceedings

    Background. The Postal Service Reform Act of 2022 \3\ modified and 
expanded the Postal Service's ability to enter into IAAs to provide 
property and services to, or on behalf of, other government agencies. 
Specifically, 39 U.S.C. 3703 for the first time authorizes the Postal 
Service to enter into agreements with agencies of any state government, 
local government, or tribal government to provide property or nonpostal 
services to the public on behalf of such agencies for non-commercial 
purposes. At the same time, with respect to the Postal Service's pre-
existing authority under 39 U.S.C. 411 to provide property and services 
to other Federal agencies, the PSRA specifies that ``[t]he Postal 
Service may establish a program to provide property and nonpostal 
services to other Government [i.e., federal] agencies within the 
meaning of section 411 \4\, but only if such program provides a net 
contribution to the Postal Service, defined as reimbursement that 
covers at least 100 percent of the costs attributable . . ..'' 39 
U.S.C. 3704.
---------------------------------------------------------------------------

    \3\ Postal Service Reform Act of 2022 (PSRA), Public Law. 117-
108, 136 Stat. 1127 (2022).
    \4\ Prior to the enactment of the PSRA, the Postal Service's 
authority for these agreements was governed by 39 U.S.C. 411, which 
authorizes the Postal Service to ``furnish property and services'' 
to ``Executive agencies within the meaning of [5 U.S.C. 105] and the 
Government Publishing Office. . . .'' 39 U.S.C. 411. Section 105 of 
Title 5 of the United States Code specifies that an `` `Executive 
agency' means an Executive department, a Government corporation, and 
an independent establishment'' of the U.S. Government, as those 
terms are defined in 5 U.S.C. chapter 1. 5 U.S.C. 105.
---------------------------------------------------------------------------

    Under the PSRA, the Postal Service must submit a report to the 
Commission after the close of each fiscal year that ``analyzes costs, 
revenues, rates, and quality of service for each agreement or 
substantially similar set of agreements for the provision of property 
or nonpostal services under section 3703 or the program as a whole 
under section 3704, . . . using such methodologies as the Commission 
may prescribe, and in sufficient detail to demonstrate compliance with 
the requirements of [Chapter 37 of Title 39 of the United States 
Code].'' 39 U.S.C. 3705(a). Upon receiving the Postal Service's report 
and providing an opportunity for public comment, the Commission must 
make a written determination of compliance. 39 U.S.C. 3705(e).
    In the Commission's FY 2022 Annual Compliance Determination,\5\ the 
Commission directed the Postal Service to develop a proposed 
methodology (or methodologies) for calculating and attributing costs 
and revenue to IAAs authorized under 39 U.S.C. 3703 and 3704, and to 
initiate a rulemaking proceeding to establish such methodology (or 
methodologies) in accordance with 39 CFR 3050.11 by no later than May 
31, 2023. Id. at 102. As directed, the Postal Service initiated the 
instant proceeding to propose a categorical approach to identifying 
costs and revenue for similar types, or groupings, of IAAs. Petition, 
Proposal Two at 2-3.
---------------------------------------------------------------------------

    \5\ Docket No. ACR2022, Annual Compliance Determination Report, 
FY 2022, March 29, 2023.
---------------------------------------------------------------------------

    Order No. 6659 and direction for further proceedings. In Order No. 
6659 the Commission conditionally approved Proposal Two, but directed 
the Postal Service to propose further changes to analytical principles 
relating to periodic reports to address specific issues that the 
Commission found remained unaddressed. First, the Commission directed 
the Postal Service to develop a proposed change in accepted analytical 
principles to develop a separate line item (or line items) in the Cost 
and Revenue Analysis (CRA) and related workbooks to enable the 
attribution of costs and related revenue to IAAs. Order No. 6659 at 16. 
Second, for agreements with government agencies that involve the 
provision of both postal services and property or nonpostal services, 
the Commission directed the Postal Service to develop a proposed change 
in analytical principles to separately account for the costs and 
revenue for those respective portions. Id. The Commission directed the 
Postal Service to file proposals related to these issues by September 
29, 2023. Id. The Commission will then accept comments on the Postal 
Service's proposals until October 16, 2023. Id. at 18.

[[Page 62024]]

III. Notice and Comment

    Docket No. RM2023-7 will remain open for consideration of matters 
raised in Order No. 6659. More information on this docket may be 
accessed via the Commission's website at https://www.prc.gov. Interested 
persons may submit comments on the Postal Service's proposals no later 
than October 16, 2023. Pursuant to 39 U.S.C. 505, Manon A. Boudreault 
shall continue to serve 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. For purposes of periodic reporting to the Commission, the 
Commission conditionally approves the changes in analytical principles 
proposed by the Postal Service in Proposal Two.
    2. Docket No. RM2023-7 will remain open for consideration of the 
matters raised in Order No. 6659.
    3. The Postal Service shall file information addressing the issues 
identified in the body of this Order by September 29, 2023.
    4. Comments by interested persons on the Postal Service's proposals 
are due no later than October 16, 2023.
    5. Pursuant to 39 U.S.C. 505, Manon A. Boudreault shall continue to 
serve as an officer of the Commission (Public Representative) to 
represent the interests of the general public in this docket.
    6. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2023-19363 Filed 9-7-23; 8:45 am]
BILLING CODE 7710-FW-P

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