Periodic Reporting, 83887-83889 [2023-26393]

Download as PDF Federal Register / Vol. 88, No. 230 / Friday, December 1, 2023 / Proposed Rules § 891.425 Lease requirements. POSTAL REGULATORY COMMISSION * * * * * (d) Notification for nonpayment of rent. The lease must contain a provision or addendum that tenants will receive notification at least 30 days prior to termination of the lease for nonpayment of rent. PART 966—PUBLIC HOUSING LEASE AND GRIEVANCE PROCEDURE 14. The authority citation for part 966 continues to read as follows: ■ Authority: 42 U.S.C. 1437f and 3535(d). 15. In § 966.4, revise paragraphs (l)(3)(i)(A), add a sentence to the end of paragraph (1)(3)(ii), add paragraphs (l)(3)(ii)(A), (B), and (C), and add paragraph (q) to read as follows: ■ § 966.4 Lease requirements. * * * * (l) * * * (3) * * * (i) * * * (A) At least 30 days in the case of failure to pay rent; * * * * * (ii) * * * All notices of lease termination required by § 966.4(1)(3)(i)(A) due to a tenant’s failure to pay rent must also include the following: (A) Instructions on how the tenant can cure the nonpayment of rent violation; (B) Information on how the tenant can recertify their income pursuant to 24 CFR 960.257(b), request a hardship exemption pursuant to 24 CFR 5.630(b), or request to switch from flat rent to income-based rent pursuant to 24 CFR 960.253(g); and (C) In the event of a Presidential declaration of a national emergency, such information as required by the Secretary. * * * * * (q) Notification for nonpayment of rent. The lease shall contain a provision or addendum that tenants will receive notification at least 30 days prior to termination of the lease for nonpayment of rent. lotter on DSK11XQN23PROD with PROPOSALS1 * § 966.8 ■ [Removed] 16. Remove § 966.8. Marcia L. Fudge, Secretary. [FR Doc. 2023–26348 Filed 11–30–23; 8:45 am] BILLING CODE 4210–67–P VerDate Sep<11>2014 17:26 Nov 30, 2023 Jkt 262001 39 CFR Part 3050 [Docket No. RM2024–2; Order No. 6816] 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 Eight). This document informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: January 18, 2024. 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: Table of Contents I. Introduction II. Proposal Eight III. Notice and Comment IV. Ordering Paragraphs I. Introduction On November 21, 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 Eight. II. Proposal Eight Background. In May 2023, the Postal Service began using a new route evaluation system, the Rural Route 1 Petition of the United States Postal Service for the Initiation of a Proceeding to Consider Proposed Changes in Analytical Principles (Proposal Eight), November 21, 2023 (Petition). Proposal Eight is attached to the Petition. The Petition was accompanied by a study supporting its proposal. See Michael D. Bradley, Calculating the Rural Carrier Product Costs Arising Under the New Evaluation System, November 21, 2023 (Bradley Study). The Postal Service also filed a notice of filing of public and non-public materials relating to Proposal Eight. Notice of Filing of USPS–RM2024– 2–1 and USPS–RM2024–2–NP1 and Application for Nonpublic Treatment, November 21, 2023. PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 83887 Evaluated Compensation System (RRECS), to determine each route’s evaluated time, on which basis the compensation for rural carriers is based. Petition, Proposal Eight at 1. The Postal Service states that RRECS replaces the previous route evaluation system and is materially different from the previous system in three important ways. Id. at 1–2. First, RRECS presents a more detailed classification of daily carrier activities and can potentially identify new linkages between rural carrier volumes and rural carrier costs. Id. at 2. Second, RRECS uses engineering and statistical methods instead of negotiated standards to establish time standards for individual rural carrier activities, which may lead to different volume variable costs. Id. Third, RRECS uses current data to determine the various counts that are applied to the time standards to determine evaluated time, unlike the existing methodology that relies on a special study (the Rural Mail Count) last conducted in 2018 to capture those counts. Id. The Postal Service concludes that because of these differences, it is likely that the relationship between rural carrier costs and volumes has changed, and changes to the existing methodology are required to accurately measure attributable rural carrier costs. Id. Proposal. Before describing the proposal, the Postal Service notes that a more detailed discussion of the research supporting the proposal is provided in the Bradley Study, and supporting data are provided in Library References USPS–RM2024–2–1 and USPS– RM2024–2–NP1. Id. at 3. The Postal Service states that because RRECS links actual volumes to actual rural carrier compensation, it is appropriate to use RRECS data to measure the variability of rural carrier costs and to distribute attributable costs to products. Id. The Postal Service explains that although the existing methodology has a solid casual basis, its implementation is dated. Id. at 4. First, it relies on Form 4241 negotiated evaluation factors, which are no longer used and do not reflect the current relationships between volume and rural carrier cost. Id. Second, it relies on volumes from the Rural Mail Count conducted in 2018, and there have been material volume shifts since then. Id. The Postal Service states that updating the existing methodology using data from RRECS also provides two advantages for calculating attributable costs. Id. First, RRECS captures volume from ongoing operational data systems, and volume counts will be automatically updated each year and will no longer depend on E:\FR\FM\01DEP1.SGM 01DEP1 83888 Federal Register / Vol. 88, No. 230 / Friday, December 1, 2023 / Proposed Rules lotter on DSK11XQN23PROD with PROPOSALS1 a special volume study. Id. at 4–5. Second, RRECS provides a more detailed description of rural carrier activities and reflects how rural carrier operations are currently performed. Id. at 5. The Postal Service states that RRECS has three types of variables that are used in calculating volume variable rural carrier costs. Id. First, it has time standards, which are the scientifically derived evaluation times specified for each carrier activity. Id. Second, it has units, which are a count of the activity that causes the carrier to incur time. Id. Third, it has time sequences, which are a measure of time spent in a specific activity. Id. The Postal Service states that for nearly all the time sequences, the calculated time is the product of the time standard for the activity and the number of units for the activity. Id.2 The Postal Service states that updating the existing methodology using RRECS data requires identifying the RRECS sequences that are volume variable. Id. at 6. This requires examining the relationship between volume and evaluated time for each of the sequences that make up the carrier’s day. Id. First, this requires examining, for each sequence, the relationship between the cost driver (measured by the sequence’s unit) and the sequence’s evaluated time. Id. Second, this requires examining the relationship between volume and the sequence’s unit. Id. The Postal Service concludes that a sequence is volume variable if both the linkage between volume and its unit, and the linkage between its unit and its evaluated time, are in force. Id. On the other hand, if a sequence’s unit is not volume dependent, then the sequence is not volume variable. Id. The Postal Service states that there are a total of 98 sequences and subsequences that make up the carrier’s day. Id. Based on its analysis, the Postal Service concludes that among these sequences and subsequences, there are 48 that are entirely volume variable, 16 that are partially volume variable, and 34 that are not volume variable. Id. at 6–7. The Postal Service states that the overall variability for rural carrier labor time is calculated as the ratio of total volume variable evaluated time to total evaluated time. Id. at 7. Under the 2 The Postal Service notes that there are three activities that are sufficiently heterogenous across routes that effective time standards could not be established. Id., n.1. These activities are loading the vehicle, deviations for Priority Mail Express deliveries, and end of shift activities. Id. For these three activities, the actual time the carrier spends is recorded on the carrier’s Mobile Delivery Device. Id. VerDate Sep<11>2014 17:26 Nov 30, 2023 Jkt 262001 existing methodology, the overall variability for labor time is 39.0 percent. Id. Using 2023 data from RRECS, the overall variability is 47.2 percent. Id. The Postal Service explains that the higher overall variability under RRECS is due to three reasons. Id. First, box time is volume variable under RRECS but not under the existing methodology. Id. The Postal Service states that total box time is a large time sequence and is the largest volume variable sequence under RRECS. Id. Second, under RRECS rural carriers get credit for verifying the addresses of mail as it is delivered. Id. at 7–8. Because this activity occurs at every box that receives mail, this makes it the second largest volume variable sequence under RRECS, whereas under the existing methodology this time is implicit in the non-volume variable box time. Id. at 8. Third, RRECS has a much more detailed examination of rural carriers’ activities, leading it to identify higher time standards for handing mail, especially for parcels. Id. The Postal Service states that because of the growth in parcel volume, these additional parcel-related activities represent the third through the fifth largest volume variable sequences under RRECS. Id. The Postal Service states that the last step in the calculation of attributable rural carrier costs is the distribution of volume variable costs to the products that cause them. Id. This requires aligning RRECS cost pools with the distribution keys in the Rural Carrier Cost System (RCCS). Id. The Postal Service states that in some cases, this requires combining RRECS cost pools that share a common RCCS distribution key, and in others it requires subdividing an RRECS cost pool into shapes-specific sub-pools that match RCCS distribution keys. Id. The Postal Service further proposes minor modifications to the RCCS distribution keys in order to realign rural carrier costing with RRECS. Id. The Postal Service states that these modifications ‘‘are related to the shape of the mail piece, the presence of delivery barcodes, and the delivery location.’’ Id. at 13. The Postal Service further states that these modifications ‘‘would result in the addition of new distribution keys, the removals of obsolete distribution keys, and in changes in the assignment of mail pieces to the distribution keys.’’ Id; see generally, id. at 13–16 (describing the minor modifications in detail). Impact. The Postal Service presents the impact of using RRECS data on the volume variable costs by product groups and the impact on unit costs by product PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 in two tables.3 In terms of the impact on volume variable costs, the Postal Service states that the most notable impact is the large increase in volume variable costs for both Package Services and Competitive products. Id. at 9. The Postal Services explains that this is due to the higher parcel-shaped volumes recorded in RRECS as compared to the 2018 Rural Mail Count, and the higher carrier time per parcel identified under RRECS as compared to the negotiated time from Form 4241. Id. In terms of the impact on unit costs, the Postal Service states there are relatively small changes in unit costs for First-Class Mail products and Marketing Mail products (except for parcels), Periodicals’ unit costs decrease because of the decline in rural route flats volume, Package Services’ and Competitive products’ unit costs increase because of higher parcel volumes and higher evaluated times per parcel in RRECS, and special services’ unit costs decrease because of lower volumes and lower unit times in RRECS. Id. at 10–11. The Postal Service concludes that ‘‘the impact analysis demonstrates that the proposed costing methodology produces volume variable and unit costs consistent with the changes in volume since 2018 and the change in the route evaluation structure brought on by RRECS.’’ Id. at 11. III. Notice and Comment The Commission establishes Docket No. RM2024–2 for consideration of matters raised by the Petition. More information on the Petition may be accessed via the Commission’s website at https://www.prc.gov. Interested persons may submit comments on the Petition and Proposal Eight no later than January 18, 2024. Pursuant to 39 U.S.C. 505, Nikki Brendemuehl 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. RM2024–2 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 Eight), filed November 21, 2023. 3 See id. at 10, Table 1, Assessing the Impact of RRECS on FY 2022 Volume Variable Costs by Product Groups (Thousands of Dollars); see also id. at 12, Table 2, Changes in Unit Costs Due to Switch to RRECS. E:\FR\FM\01DEP1.SGM 01DEP1 Federal Register / Vol. 88, No. 230 / Friday, December 1, 2023 / Proposed Rules 2. Comments by interested persons in this proceeding are due no later than January 18, 2024. 3. Pursuant to 39 U.S.C. 505, the Commission appoints Nikki Brendemuehl 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 the publication of this Order in the Federal Register. By the Commission. Erica A. Barker, Secretary. [FR Doc. 2023–26393 Filed 11–30–23; 8:45 am] BILLING CODE 7710–FW–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 63 [EPA–OAR–2023–0406; FRL–10652–01– OAR] RIN 2060–AV97 Removal of Affirmative Defense Provisions From the National Emission Standards for Hazardous Air Pollutants for the Oil and Natural Gas Production Facility and Natural Gas Transmission and Storage Facility Source Categories Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The EPA is proposing amendments to the National Emission Standards for Hazardous Air Pollutants for the oil and gas industry issued under the Clean Air Act. Specifically, the EPA is proposing to remove the affirmative defense provisions of the National Emission Standards for Hazardous Air Pollutants for both the Oil and Natural Gas Production source category and the Natural Gas Transmission and Storage source category. DATES: Comments. Comments must be received on or before January 16, 2024. Public hearing: If anyone contacts us requesting a public hearing on or before December 6, 2023, we will hold a virtual public hearing. See SUPPLEMENTARY INFORMATION for information on requesting and registering for a public hearing. ADDRESSES: You may send comments, identified by Docket ID No. EPA–HQ– OAR–2023–0406, by any of the following methods: • Federal eRulemaking Portal: https://www.regulations.gov/ (our preferred method). Follow the online instructions for submitting comments. lotter on DSK11XQN23PROD with PROPOSALS1 SUMMARY: VerDate Sep<11>2014 17:26 Nov 30, 2023 Jkt 262001 • Email: a-and-r-docket@epa.gov. Include Docket ID No. EPA–HQ–OAR– 2023–0406 in the subject line of the message. • Fax: (202) 566–9744. Attention Docket ID No. EPA–HQ–OAR–2023– 0406. • Mail: U.S. Environmental Protection Agency, EPA Docket Center, Docket ID No. EPA–HQ–OAR–2023– 0406, Mail Code 28221T, 1200 Pennsylvania Avenue NW, Washington, DC 20460. • Hand/Courier Delivery: EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004. The Docket Center’s hours of operation are 8:30 a.m.–4:30 p.m., Monday–Friday (except Federal holidays). Instructions: All submissions received must include the Docket ID No. for this rulemaking. Comments received may be posted without change to https:// www.regulations.gov/, including any personal information provided. For detailed instructions on sending comments and additional information on the rulemaking process, see the SUPPLEMENTARY INFORMATION section of this document. FOR FURTHER INFORMATION CONTACT: For questions about this proposed action, contact U.S. EPA, Attn. Matthew Witosky, Mail Drop: E143–05, 109 T.W. Alexander Drive, P.O. Box 12055, RTP, North Carolina 27711; telephone number: (919) 541–2865; and email address: witosky.matthew@epa.gov. SUPPLEMENTARY INFORMATION: Participation in virtual public hearing. To request a virtual public hearing, contact the public hearing team at (888) 372–8699 or by email at SPPDpublichearing@epa.gov. If requested, the hearing will be held via virtual platform on December 18, 2023. The hearing will convene at 11 a.m. Eastern Time (ET) and will conclude at 3 p.m. ET. The EPA may close a session 15 minutes after the last pre-registered speaker has testified if there are no additional speakers. The EPA will announce further details at https:// www.epa.gov/controlling-air-pollutionoil-and-natural-gas-industry/actionsand-notices-about-oil-andnatural#neshap. If a public hearing is requested, the EPA will begin pre-registering speakers for the hearing no later than 1 business day after a request has been received. To register to speak at the virtual hearing, please use the online registration form available at https://www.epa.gov/ controlling-air-pollution-oil-andnatural-gas-industry/actions-andnotices-about-oil-and-natural#neshap or PO 00000 Frm 00020 Fmt 4702 Sfmt 4702 83889 contact the public hearing team at (888) 372–8699 or by email at SPPDpublichearing@epa.gov. The last day to pre-register to speak at the hearing will be December 13, 2023. Prior to the hearing, the EPA will post a general agenda that will list preregistered speakers at: https:// www.epa.gov/controlling-air-pollutionoil-and-natural-gas-industry/actionsand-notices-about-oil-andnatural#neshap. The EPA will make every effort to follow the schedule as closely as possible on the day of the hearing; however, please plan for the hearings to run either ahead of schedule or behind schedule. Each commenter will have 4 minutes to provide oral testimony. The EPA encourages commenters to provide the EPA with a copy of their oral testimony electronically (via email) by emailing it to witosky.matthew@epa.gov. The EPA also recommends submitting the text of your oral testimony as written comments to the rulemaking docket. The EPA may ask clarifying questions during the oral presentations but will not respond to the presentations at that time. Written statements and supporting information submitted during the comment period will be considered with the same weight as oral testimony and supporting information presented at the public hearing. Please note that any updates made to any aspect of the hearing will be posted online at https://www.epa.gov/ controlling-air-pollution-oil-andnatural-gas-industry/actions-andnotices-about-oil-andnatural#regactions. While the EPA expects the hearing to go forward as set forth above, please monitor our website or contact the public hearing team at (888) 372–8699 or by email at SPPDpublichearing@epa.gov to determine if there are any updates. The EPA does not intend to publish a document in the Federal Register announcing updates. If you require the services of a translator or special accommodation such as audio description, please preregister for the hearing with the public hearing team and describe your needs by December 8, 2023. The EPA may not be able to arrange accommodations without advanced notice. Docket. The EPA has established a docket for this rulemaking under Docket ID No. EPA–HQ–OAR–2023–0406. All documents in the docket are listed in https://www.regulations.gov/. Although listed, some information is not publicly available, e.g., Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. E:\FR\FM\01DEP1.SGM 01DEP1

Agencies

[Federal Register Volume 88, Number 230 (Friday, December 1, 2023)]
[Proposed Rules]
[Pages 83887-83889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26393]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2024-2; Order No. 6816]


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 Eight). 
This document informs the public of the filing, invites public comment, 
and takes other administrative steps.

DATES: Comments are due: January 18, 2024.

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 Eight
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On November 21, 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 Eight.
---------------------------------------------------------------------------

    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Eight), November 21, 2023 
(Petition). Proposal Eight is attached to the Petition. The Petition 
was accompanied by a study supporting its proposal. See Michael D. 
Bradley, Calculating the Rural Carrier Product Costs Arising Under 
the New Evaluation System, November 21, 2023 (Bradley Study). The 
Postal Service also filed a notice of filing of public and non-
public materials relating to Proposal Eight. Notice of Filing of 
USPS-RM2024-2-1 and USPS-RM2024-2-NP1 and Application for Nonpublic 
Treatment, November 21, 2023.
---------------------------------------------------------------------------

II. Proposal Eight

    Background. In May 2023, the Postal Service began using a new route 
evaluation system, the Rural Route Evaluated Compensation System 
(RRECS), to determine each route's evaluated time, on which basis the 
compensation for rural carriers is based. Petition, Proposal Eight at 
1. The Postal Service states that RRECS replaces the previous route 
evaluation system and is materially different from the previous system 
in three important ways. Id. at 1-2. First, RRECS presents a more 
detailed classification of daily carrier activities and can potentially 
identify new linkages between rural carrier volumes and rural carrier 
costs. Id. at 2. Second, RRECS uses engineering and statistical methods 
instead of negotiated standards to establish time standards for 
individual rural carrier activities, which may lead to different volume 
variable costs. Id. Third, RRECS uses current data to determine the 
various counts that are applied to the time standards to determine 
evaluated time, unlike the existing methodology that relies on a 
special study (the Rural Mail Count) last conducted in 2018 to capture 
those counts. Id. The Postal Service concludes that because of these 
differences, it is likely that the relationship between rural carrier 
costs and volumes has changed, and changes to the existing methodology 
are required to accurately measure attributable rural carrier costs. 
Id.
    Proposal. Before describing the proposal, the Postal Service notes 
that a more detailed discussion of the research supporting the proposal 
is provided in the Bradley Study, and supporting data are provided in 
Library References USPS-RM2024-2-1 and USPS-RM2024-2-NP1. Id. at 3.
    The Postal Service states that because RRECS links actual volumes 
to actual rural carrier compensation, it is appropriate to use RRECS 
data to measure the variability of rural carrier costs and to 
distribute attributable costs to products. Id. The Postal Service 
explains that although the existing methodology has a solid casual 
basis, its implementation is dated. Id. at 4. First, it relies on Form 
4241 negotiated evaluation factors, which are no longer used and do not 
reflect the current relationships between volume and rural carrier 
cost. Id. Second, it relies on volumes from the Rural Mail Count 
conducted in 2018, and there have been material volume shifts since 
then. Id.
    The Postal Service states that updating the existing methodology 
using data from RRECS also provides two advantages for calculating 
attributable costs. Id. First, RRECS captures volume from ongoing 
operational data systems, and volume counts will be automatically 
updated each year and will no longer depend on

[[Page 83888]]

a special volume study. Id. at 4-5. Second, RRECS provides a more 
detailed description of rural carrier activities and reflects how rural 
carrier operations are currently performed. Id. at 5.
    The Postal Service states that RRECS has three types of variables 
that are used in calculating volume variable rural carrier costs. Id. 
First, it has time standards, which are the scientifically derived 
evaluation times specified for each carrier activity. Id. Second, it 
has units, which are a count of the activity that causes the carrier to 
incur time. Id. Third, it has time sequences, which are a measure of 
time spent in a specific activity. Id. The Postal Service states that 
for nearly all the time sequences, the calculated time is the product 
of the time standard for the activity and the number of units for the 
activity. Id.\2\
---------------------------------------------------------------------------

    \2\ The Postal Service notes that there are three activities 
that are sufficiently heterogenous across routes that effective time 
standards could not be established. Id., n.1. These activities are 
loading the vehicle, deviations for Priority Mail Express 
deliveries, and end of shift activities. Id. For these three 
activities, the actual time the carrier spends is recorded on the 
carrier's Mobile Delivery Device. Id.
---------------------------------------------------------------------------

    The Postal Service states that updating the existing methodology 
using RRECS data requires identifying the RRECS sequences that are 
volume variable. Id. at 6. This requires examining the relationship 
between volume and evaluated time for each of the sequences that make 
up the carrier's day. Id. First, this requires examining, for each 
sequence, the relationship between the cost driver (measured by the 
sequence's unit) and the sequence's evaluated time. Id. Second, this 
requires examining the relationship between volume and the sequence's 
unit. Id. The Postal Service concludes that a sequence is volume 
variable if both the linkage between volume and its unit, and the 
linkage between its unit and its evaluated time, are in force. Id. On 
the other hand, if a sequence's unit is not volume dependent, then the 
sequence is not volume variable. Id.
    The Postal Service states that there are a total of 98 sequences 
and subsequences that make up the carrier's day. Id. Based on its 
analysis, the Postal Service concludes that among these sequences and 
subsequences, there are 48 that are entirely volume variable, 16 that 
are partially volume variable, and 34 that are not volume variable. Id. 
at 6-7.
    The Postal Service states that the overall variability for rural 
carrier labor time is calculated as the ratio of total volume variable 
evaluated time to total evaluated time. Id. at 7. Under the existing 
methodology, the overall variability for labor time is 39.0 percent. 
Id. Using 2023 data from RRECS, the overall variability is 47.2 
percent. Id.
    The Postal Service explains that the higher overall variability 
under RRECS is due to three reasons. Id. First, box time is volume 
variable under RRECS but not under the existing methodology. Id. The 
Postal Service states that total box time is a large time sequence and 
is the largest volume variable sequence under RRECS. Id. Second, under 
RRECS rural carriers get credit for verifying the addresses of mail as 
it is delivered. Id. at 7-8. Because this activity occurs at every box 
that receives mail, this makes it the second largest volume variable 
sequence under RRECS, whereas under the existing methodology this time 
is implicit in the non-volume variable box time. Id. at 8. Third, RRECS 
has a much more detailed examination of rural carriers' activities, 
leading it to identify higher time standards for handing mail, 
especially for parcels. Id. The Postal Service states that because of 
the growth in parcel volume, these additional parcel-related activities 
represent the third through the fifth largest volume variable sequences 
under RRECS. Id.
    The Postal Service states that the last step in the calculation of 
attributable rural carrier costs is the distribution of volume variable 
costs to the products that cause them. Id. This requires aligning RRECS 
cost pools with the distribution keys in the Rural Carrier Cost System 
(RCCS). Id. The Postal Service states that in some cases, this requires 
combining RRECS cost pools that share a common RCCS distribution key, 
and in others it requires subdividing an RRECS cost pool into shapes-
specific sub-pools that match RCCS distribution keys. Id.
    The Postal Service further proposes minor modifications to the RCCS 
distribution keys in order to realign rural carrier costing with RRECS. 
Id. The Postal Service states that these modifications ``are related to 
the shape of the mail piece, the presence of delivery barcodes, and the 
delivery location.'' Id. at 13. The Postal Service further states that 
these modifications ``would result in the addition of new distribution 
keys, the removals of obsolete distribution keys, and in changes in the 
assignment of mail pieces to the distribution keys.'' Id; see 
generally, id. at 13-16 (describing the minor modifications in detail).
    Impact. The Postal Service presents the impact of using RRECS data 
on the volume variable costs by product groups and the impact on unit 
costs by product in two tables.\3\ In terms of the impact on volume 
variable costs, the Postal Service states that the most notable impact 
is the large increase in volume variable costs for both Package 
Services and Competitive products. Id. at 9. The Postal Services 
explains that this is due to the higher parcel-shaped volumes recorded 
in RRECS as compared to the 2018 Rural Mail Count, and the higher 
carrier time per parcel identified under RRECS as compared to the 
negotiated time from Form 4241. Id.
---------------------------------------------------------------------------

    \3\ See id. at 10, Table 1, Assessing the Impact of RRECS on FY 
2022 Volume Variable Costs by Product Groups (Thousands of Dollars); 
see also id. at 12, Table 2, Changes in Unit Costs Due to Switch to 
RRECS.
---------------------------------------------------------------------------

    In terms of the impact on unit costs, the Postal Service states 
there are relatively small changes in unit costs for First-Class Mail 
products and Marketing Mail products (except for parcels), Periodicals' 
unit costs decrease because of the decline in rural route flats volume, 
Package Services' and Competitive products' unit costs increase because 
of higher parcel volumes and higher evaluated times per parcel in 
RRECS, and special services' unit costs decrease because of lower 
volumes and lower unit times in RRECS. Id. at 10-11.
    The Postal Service concludes that ``the impact analysis 
demonstrates that the proposed costing methodology produces volume 
variable and unit costs consistent with the changes in volume since 
2018 and the change in the route evaluation structure brought on by 
RRECS.'' Id. at 11.

III. Notice and Comment

    The Commission establishes Docket No. RM2024-2 for consideration of 
matters raised by the Petition. More information on the Petition may be 
accessed via the Commission's website at https://www.prc.gov. Interested 
persons may submit comments on the Petition and Proposal Eight no later 
than January 18, 2024. Pursuant to 39 U.S.C. 505, Nikki Brendemuehl 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. RM2024-2 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 Eight), filed November 21, 2023.

[[Page 83889]]

    2. Comments by interested persons in this proceeding are due no 
later than January 18, 2024.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Nikki 
Brendemuehl 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 the publication of this Order in 
the Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2023-26393 Filed 11-30-23; 8:45 am]
BILLING CODE 7710-FW-P
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