Service Standard Changes, 83708-83718 [2024-23853]

Download as PDF 83708 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices reservation boundaries, and (4) when there are changes. Information is requested from those Indian Tribes seeking to receive advance notifications. Some information is requested one time. 6. Who will be required or asked to respond: Federally recognized Indian Tribes. Only those Federally recognized Indian Tribes with reservations and either receiving or seeking to receive the advance notifications would be asked to respond to the specific information request. 7. The estimated number of annual responses: 20 (7 reporting responses + 13 recordkeepers). 8. The estimated number of annual respondents: 13. 9. The estimated number of hours needed annually to comply with the information collection requirement or request: 37.5 hours (21 reporting + 16.5 recordkeeping). 10. Abstract: In order to receive notification of certain shipments of irradiated reactor fuel and/or nuclear waste within or across the boundary of comply with the compatible Agreement State regulations. III. Specific Requests for Comments The NRC is seeking comments that address the following questions: 1. Is the proposed collection of information necessary for the NRC to properly perform its functions? Does the information have practical utility? Please explain your answer. 2. Is the estimate of the burden of the information collection accurate? Please explain your answer. 3. Is there a way to enhance the quality, utility, and clarity of the information to be collected? 4. How can the burden of the information collection on respondents be minimized, including the use of automated collection techniques or other forms of information technology? IV. Availability of Documents The documents identified in the following table are available to interested persons through ADAMS. Document description ADAMS accession No. Five-year Notification Letter Template for Tribal Participation in the Advance Notification Program ................................................ Acknowledgment Letter Template for Tribal Participation in the Advance Notification Program ....................................................... NUREG/BR–0362 ‘‘Protection of Safeguards Information: Requirements for Tribes Participating in the Advance Notification of Irradiated Reactor Fuel Shipments’’. Safeguards Information (SGI) Awareness Training ............................................................................................................................ Draft Supporting Statement ................................................................................................................................................................. ML24170A429 ML24170A430 ML12283A116 Dated: October 11, 2024. For the Nuclear Regulatory Commission. David Cullison, NRC Clearance Officer, Office of the Chief Information Officer. [FR Doc. 2024–23961 Filed 10–16–24; 8:45 am] BILLING CODE 7590–01–P POSTAL REGULATORY COMMISSION [Docket No. N2024–1; Order No. 7695] Service Standard Changes Postal Regulatory Commission. Notice. AGENCY: ACTION: The Commission is acknowledging a recently-filed Postal Service request for an advisory opinion regarding planned changes to its processing and transportation networks. This document invites public comments on the request and addresses several related procedural steps. DATES: Notices of intervention are due: October 21, 2024; Live WebEx Technical Conference: October 16, 2024, at 1 p.m., eastern daylight time, virtual. SUMMARY: ddrumheller on DSK120RN23PROD with NOTICES1 an Indian Tribe’s reservation, Tribes shall affirmatively opt into the advance notification program. Because the notification may contain Safeguards Information (SGI), the Tribal official will submit certification that the Tribal official or their designee(s) has completed NRC-provided training on the handling of SGI and has the necessary protection measures in place for implementation. The Tribal official will provide contact information for the designee(s) and emergency response contact(s). The Tribal official will also provide confirmation of the reservation boundaries or the necessary corrections to a map provided by the NRC. The NRC makes this information available to others, including NRC and Agreement State licensees. NRC licensees will use the information to comply with the NRC’s regulations that require them to provide advance notice of certain shipments of radioactive material to participating Tribes. Agreement State licensees may use the information to VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 Submit notices of intervention electronically via the Commission’s Filing Online system at https://www.prc.gov. Persons interested in intervening who cannot submit their views electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: ADDRESSES: Table of Contents I. Introduction II. Pre-Filing Issues III. The Request IV. Initial Administrative Actions V. Ordering Paragraphs I. Introduction On October 4, 2024, the Postal Service filed a request for an advisory opinion from the Commission regarding planned changes to its processing and transportation networks.1 In particular, 1 United States Postal Service’s Request for an Advisory Opinion on Changes in the Nature of Postal Services, October 4, 2024 (Request). The Postal Service filed the instant Request at the direction of the Commission, following the Postal Service’s initial presentation of these proposed changes as part of the changes associated with the PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 ML16083A340 ML24170A431 the Postal Service plans to create a nationwide network of Regional Processing and Distribution Centers (RPDCs) and Local Processing Centers (LPCs). Id. at 3. The Postal Service states that this initiative will ‘‘increase throughput, gain productivity, and increase asset utilization across the country.’’ Id. Additionally, the Postal Service intends to implement its Regional Transportation Optimization (RTO) initiative on a nationwide basis. Id. The Postal Service states that the RTO initiative will ‘‘improve the efficiency and velocity of the processing network.’’ Id. The Postal Service estimates that these two initiatives will allow it ‘‘to achieve estimated cost savings of between $3.6 billion and $3.7 billion on an annual basis once fully implemented.’’ Id. The Postal Service also proposes to revise its service standards ‘‘to align with these operational initiatives. . . .’’ Id. Specifically, the Postal Service will Delivering for America Plan. See Docket No. PI2023–4, Order Directing Postal Service to Show Cause or File a Nature of Service Proceeding Regarding Certain Delivering for America Initiatives, April 26, 2024 (Order No. 7061). E:\FR\FM\17OCN1.SGM 17OCN1 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices ‘‘transition to 5-Digit to 5-Digit ZIP Code service standards’’ that reflect ‘‘the three operational legs applicable to the movement of mail and packages: collection to origin processing (Leg 1), origin processing to destination processing (Leg 2), and destination processing to delivery (Leg 3).’’ Id. at 4. The Postal Service asserts that despite these changes, it will preserve the existing day ranges for First-Class Mail, which is currently 1–5 days, and USPS Ground Advantage, which is 2–5 days. Id. Additionally, the Postal Service intends to ‘‘transition the service standards for end-to-end USPS Marketing Mail and USPS Package Services so that they are based on the standards for First-Class Mail and USPS Ground Advantage,’’ which will shorten the day ranges for those products as compared to current standards. Id. The Postal Service states that ‘‘[s]ome mail and packages will . . . have a service expectation that is longer than the current expectation (although still within the current day-ranges)’’ if its originating 5-Digit ZIP Code is subject to RTO. Id. at 5. Finally, the Postal Service states that it will also exclude Sundays and holidays as transit days in these new service standards. Id. The intended effective date of the Postal Service’s planned changes is no earlier than 90 days after the filing of the Request. Id. at 48. The Request was filed pursuant to 39 U.S.C. 3661 and 39 CFR part 3020. Before issuing its advisory opinion, the Commission shall accord an opportunity for a formal, onthe-record hearing pursuant to 5 U.S.C. 556 and 557. 39 U.S.C. 3661(c). This Order provides information on the Postal Service’s planned changes, explains and establishes the process for the on-the-record hearing, and lays out the procedural schedule to be followed in this case. ddrumheller on DSK120RN23PROD with NOTICES1 II. Pre-Filing Issues On August 22, 2024, the Postal Service filed a notice of its intent to conduct a pre-filing conference regarding its plans to transform its processing and transportation networks and to revise service standards to align with these changes.2 On August 26, 2024, the Commission issued Order No. 7414, which established Docket No. N2024–1 to consider the Postal Service’s proposed changes, notified the public concerning the Postal Service’s pre-filing conference, and appointed a Public 2 Notice of Pre-Filing Conference, August 22, 2024, at 1. VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 Representative.3 The Postal Service held its pre-filing conference virtually on September 5, 2024, at 1:00 p.m. Eastern Time (ET). See Request at 49. The Postal Service certifies that it has made a good faith effort to address concerns of interested persons about the Postal Service’s proposal raised at the prefiling conference. See id. III. The Request A. The Postal Service’s Planned Changes 1. Processing and Transportation Networks Currently, the Postal Service’s legacy processing network consists of a mix of Processing and Distribution Centers (P&DCs) and Network Distribution Centers (NDCs), combined with ‘‘numerous ancillary facilities . . . .’’ Id. at 13. As a result of the current processing network facilities’ conditions and age, their number and the piecemeal and ad hoc nature of their implementation, and the lack of operational standardization necessary to address the processing of mail and packages, the Postal Service determined that it must redesign the legacy network and ‘‘construct a network that enables [it] to handle mail and packages in a precise, efficient, and integrated manner. . . .’’ Id. at 13–14. The proposed processing network will be designed using a ‘‘regional concept,’’ and consist of two standardized facility types: (1) Regional Processing and Distribution Centers (RPDCs) and (2) Local Processing Centers (LPCs). Id. at 14. RPDCs will manage ‘‘the flow of mail and packages that originate or destinate in that region.’’ Id. at 15. They will ‘‘perform originating sortation operations for letters, flats, and packages to the 3-digit ZIP Code level, for dispatch to the rest of the country.’’ Id. They will also ‘‘engage in cross-docking and sortation operations for destinating letters, flats, and parcels for dispatch to a LPC.’’ Id. Finally, they will ‘‘serve as intermediate consolidation points for volume that is traveling across the country (known as Regional Transfer Hub (RTH) operations).’’ Id. LPCs will be designed to ‘‘handle destinating letter, flat, and package sortation operations for designated 3Digit ZIP Codes within a region, for dispatch to Sorting and Delivery Centers (S&DCs) and delivery units.’’ Id. at 16. Some LPCs might ‘‘sort and/or crossdock carrier route bundles of flats to 3 Notice and Order Concerning the Postal Service’s Pre-Filing Conference, August 26, 2024 (Order No. 7414). PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 83709 S&DCs and delivery units’’ or perform ‘‘certain originating operations’’ as designated by the Postal Service. Id. They will also act as a consolidation point ‘‘for all volume types coming from the delivery network on the way to the RPDC.’’ Id. Some LPCs might be co-located with RPDCs and some RPDC operations might be located ‘‘in a single building or a campus of two or more buildings’’ based on what the Postal Service determines is most efficient and costeffective. Id. at 15–16. The Postal Service notes that each of the functions these new facility categories ‘‘are not rigid, and may be subject to varying adjustments and configurations based on local operational considerations . . . .’’ Id. at 16. The Postal Service intends to make these network changes on a region-by-region basis over the course of multiple years. Id. In conjunction with these new facilities, the Postal Service also intends to implement its Regional Transportation Optimization (RTO) initiative on a nationwide basis. Id. at 21. While, according to the Postal Service, ‘‘[t]he volume of mail collected through [its] rental facilities (including mail collected on carrier routes and entered at Post Offices) has declined substantially in recent decades[,]’’ it has not ‘‘fundamentally adjusted’’ its associated collection processes and transportation network to account for the decline. Id. at 19. This has resulted in numerous transportation and processing inefficiencies as the Postal Service has continued its process of transporting destinating mail and packages from the processing network to collection or delivery facilities in the morning and transporting originating mail from collection or delivery facilities to the processing network in the afternoon. Id. at 19–20. Instead, under RTO, ‘‘certain collection/delivery facilities will have their destinating mail dropped off, and their originating mail picked up, on the same transportation route.’’ Id. at 22. The Postal Service indicates that it will designate 5-Digit ZIP Codes for RTO ‘‘when the facility from which the collection mail and packages are dispatched is more than 50 miles from the RPDC campus.’’ Id. According to the Postal Service, RTO will enable it to redesign its transportation routes to reduce the number of trips and layovers and eliminate unnecessary or underutilized trips. Id. at 23. 2. Service Standards Currently, the Postal Service’s FirstClass Mail and USPS Ground Advantage service standards ‘‘are predicated on E:\FR\FM\17OCN1.SGM 17OCN1 83710 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices plant-to-plant (i.e., on a 3-Digit to 3Digit ZIP Code) driving distances.’’ Id. at 27. They do not consider the variations in transportation operations that are required to move volume from the collection point to the processing network. Id. The Postal Service proposes to ‘‘transition to 5-Digit to 5Digit ZIP Code (i.e. Post Office to Post Office) service standards that maintain the existing delivery day ranges for both First-Class Mail and USPS Ground Advantage . . . .’’ Id. at 28. The Postal Service also proposes to ‘‘transition the service standards for end-to-end USPS Marketing Mail and Package Services so that they are based on the standards for First-Class Mail and USPS Ground Advantage, respectively, which will result in a shorter day range for these products when compared to the current service standards.’’ Id. Under its proposed approach for inter-RPDC First-Class Mail and USPS Ground Advantage, the Postal Service would segment volume into three legs: collection to origin processing (Leg 1); origin processing facility to destination processing facility (Leg 2); and destination processing facility to delivery (Leg 3). Id. at 30. The proposed service standards ‘‘will be based on how many days cumulatively apply to a particular mailpiece across the three operational legs.’’ Id. For Leg 1, the Postal Service will ‘‘align our standards with RTO’’ and apply 1 day to pieces that ‘‘originate in a 5-Digit ZIP Code more than 50 miles from the RPDC, meaning RTO is being applied, and 0 days will apply to pieces originating in other 5-Digit ZIP Codes.’’ Id. For Leg 2, the Postal Service will ‘‘apply [2–5] days based on the travel distance between the originating and destinating processing plants’’ using the new network outlined above. Id. at 30– 31. The transit paths will be updated to reflect the new network and ‘‘measure the distance between the Origin RPDC and the Destination RPDC and then the distance between the Destination RPDC and the Destination LPC.’’ Id. at 34. With regard to Leg 2, the Postal Service states that because RTO and the new and more efficient network will improve arrival profiles, ‘‘each of the existing service standard bands will expand by four hours for First-Class Mail.’’ Id. at 34–36. No additional days will be added for Leg 3, ‘‘which is the same as the current standards.’’ Id. at 30. The Leg 1 rules will not apply to ‘‘any products entered at a RPDC, Presort First-Class Mail, or any destinationentered volume.’’ Id. at 32. The Postal Service proposes to add an ‘‘extra day for volume that is entered in a 5-Digit ZIP Code subject to RTO[ ]’’ for its Priority Mail and Priority Mail Express products but still ‘‘intends for Priority Mail to remain a 1–3 day product,’’ and anticipates that ‘‘Priority Mail Express will be a 1–3 day (guaranteed) product.’’ Id. at 33–34. Finally, for mail and packages that originate and destinate within the same RPDC region, ‘‘[t]he proposed service standards would expand the geographic scope of turnaround volume (i.e., volume originating and destinating within a facility’s service area).’’ Id. at 37. Currently, this ‘‘volume receives a twoday standard.’’ Id. Under the proposed standards, intra-LPC and intra-RPDC volume will either be subject to a 2 or 3-day standard depending on whether the originating volume is from a 5-digit ZIP Code beyond 50 miles of the cancellation location. Id. ‘‘The standards for end-to-end Marketing Mail, Periodicals, and Package Services within a region will also be based on these standards.’’ Id. The Postal Service outlines the proposed standards as follows: · Leg2 Leg 1 Coliectlo1n (0•1 day) Network 12-5 days) l:!Pf:l l!lP3 Leg3 Delivery (0 days') __,. . ZIP5.ll:1Plil .DFAM1p DU • Service standard based on oRPOC to dtsl!naling •RPOC (dRPOC) lo dHtinaling LPC (dLPC:) ddrumheller on DSK120RN23PROD with NOTICES1 • Assi>gnmenl of 0-1 day bail.lld oo Wlher ZIP Code has been designated ror RTO " New ba11d1 which rel!eel exp:111ndad 1J)lll:nl-to-pl111nt re10h due to operatioMI Initiatives Id. at 31. B. The Postal Service’s Position Finally, the Postal Service intends to change how it measures performance under these standards. Id. at 40. ‘‘Specifically, the Postal Service will not count Sundays or holidays as transit days for volume entered on a Saturday or the day before a holiday.’’ Id. It will also ‘‘change the Service Performance Measurement system to enable measurement at the 5-Digit ZIP Code level . . . .’’ Id. 1. Processing and Transportation Networks VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 The Postal Service asserts that these network changes will ‘‘enable significant cost reductions in both processing operations and in [its] transportation network, while improving the work environment for [its] employees.’’ Id. at 18. It will enable the Postal Service to more efficiently balance its use of ground and air transportation and should result in a reduced number of surface and air nodes. Id. The Postal Service states that PO 00000 • Deslina~ng plant to delivlLlfY point Frm 00077 Fmt 4703 Sfmt 4703 these modifications will eliminate ‘‘unnecessary trips’’ and increase utilization of the remaining trips. Id. It will also allow the Postal Service to further reduce costs through the elimination of ‘‘excess facilities.’’ Id. Additionally, according to the Postal Service, the implementation of the RTO initiative on a nationwide basis will ‘‘result in significant improvements in transportation and processing operations.’’ Id. at 22. It will result in a reduced number of trips and layovers, which will in turn reduce carbon emissions and increase utilization of the Postal Service’s transportation E:\FR\FM\17OCN1.SGM 17OCN1 EN17OC24.003</GPH> De1<:rlption • ln1n1it t'll1m point ol entryl11ocepl11noe to originating RPDC (dRPOCJ 83711 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices resources. Id. at 23. The Postal Service also states that the RTO initiative will improve ‘‘the efficiency and velocity of the processing network,’’ by creating efficient ‘‘operating windows in originating and processing facilities’’ because non-RTO volume may be processed and dispatched earlier than under its current transportation policy. Id. Overall, the Postal Service estimates that it will save ‘‘between $3.6 and $3.7 billion annually in Leg 1 and Leg 2 transportation costs, mail and package processing costs, and facility costs[ ]’’ through the implementation of these two initiatives. Id. at 23. Table 1 below details the Postal Service’s estimated annual cost savings, organized by category. The Postal Service cautions that because it intends to implement these initiatives ‘‘through a deliberate implementation plan over time,’’ that not all savings will be achieved immediately. Id. at 26. Thus, ‘‘[t]his approach reasonably estimates the expected future savings from these initiatives when fully implemented.’’ Id. TABLE 1—ESTIMATED ANNUAL COST SAVINGS BY CATEGORY Category Estimated annual cost savings Regional Transportation .......................... Network Transportation ........................... Mail and Package Processing ................. Facilities ................................................... $651 million. $1.8 billion ($1.1 billion from surface transportation and $701 million from air transportation). $1.1–$1.2 billion. $81 million. Id. at 24–25. 2. Service Standards The Postal Service states that under the new standards, ‘‘the majority of overall market-dominant volume’’ will have ‘‘either the same service standards . . . or an accelerated standard.’’ Id. at 38. And while the specific volume impacts were filed under seal for competitive products, the Postal Service states that ‘‘the overall impact of these proposed changes is that the majority of packages will either have the same service standard or a better standard, consistent with the fact that a majority of package volume is entered in ZIP Codes that are within 50 miles of’’ the processing network. Id. at 40. Table 2 below details ‘‘the impact on all marketdominant volume, including end-to-end and destination entry. Id. at 38. TABLE 2—ESTIMATED VOLUME CHANGES UNDER PROPOSED SERVICE STANDARDS Products Estimated % of volume change All Market Dominant Products ..................................... First-Class Mail ............................................................ Marketing Mail ............................................................. Periodicals ................................................................... Package Services 4 ...................................................... 83% 75% 90% 93% 79% unchanged, unchanged, unchanged, unchanged, unchanged, 11% upgraded, 6% downgraded. 14% upgraded, 11% downgraded. 8% upgraded, 2% downgraded. 4% upgraded, 3% downgraded. 12% upgraded, 9% downgraded. Id. at 38–39. Volume Upgrades and Downgrades . .A.cross Mark.et Dominant Products p·y2.4a.3 Volume· Summary impact Sr&akout .by product %Of V¢lllime 248. 100 UIO 11,279M 12,136M FCM Marketing Man 0 4 Package Services refers to a Market Dominant class of mail products intended for non-urgent VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 delivery of books, catalogs, and other printed materials such as Media Mail/Library Mail. It does PO 00000 Frm 00078 Fmt 4703 Sfmt 4725 Periodicals Package Services not refer to the Postal Service’s Competitive package products such as USPS Ground Advantage. E:\FR\FM\17OCN1.SGM 17OCN1 EN17OC24.004</GPH> ddrumheller on DSK120RN23PROD with NOTICES1 50 83712 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices Id. at 38. C. The Postal Service’s Direct Case The Postal Service is required to file its direct case along with the Request. See 39 CFR 3020.114. The Postal Service’s direct case includes all the prepared evidence and testimony upon which the Postal Service proposes to rely on in order to establish that its proposal accords with and conforms to the policies of title 39, United States Code. See id. The Postal Service provides the direct testimony of five witnesses and identifies a sixth individual to serve as its institutional witness and provide information relevant to the Postal Service’s proposal that is not provided by other Postal Service witnesses. See Request at 50–52. Table 3 below details the Postal Service’s direct case, organized by witness. TABLE 3—POSTAL SERVICE WITNESSES 1. Stephen Hagenstein ............. 2. Arslan Saleem ...................... 3. Leslie Johnson-Frick ............ 4. Gregory White ...................... 5. Curtis Whiteman ................... 6. Sharon Owens ..................... • • • • • • • • • • • • • • • • • • Description of the proposed revisions to service standards, including the three legs ............ Explanation of inefficiencies of current network’s first leg ....................................................... Description of how RTO initiative corrects those inefficiencies ............................................... Anticipated flow of mail and package volume within the RPDC/LPC network ........................ Estimated impact of proposed service standards on 5-Digit ZIP pairs .................................... Explanation of how the proposed changes will be addressed in measurement (including through revisions to the Service Performance Measurement (SPM) Plan). Explanation of the exclusion of Sundays and holidays as transit days ................................... Estimate of impacts on mail volumes ....................................................................................... Explanation of performance measurement based on 5-Digit ZIP code ................................... Description of how RTO changes will not impact local mail collection and delivery ............... Explanation of how local office operations might change to accommodate the RTO initiative Explanation of how changes will be communicated to customers .......................................... Explanation of measures to ensure timely delivery of Election Mail ....................................... Explanation of how the RPDC/LPC network changes and RTO initiative will improve processing effectiveness and produce cost savings. Description of the standard operating procedures for the RPDCs and LPCs ......................... Discussion of the estimated cost savings ................................................................................ Description of the methodology used to calculate the estimated savings ............................... Institutional witness capable of providing information relevant to the Postal Service’s proposal that is not provided by other Postal Service witnesses. Id. at 51–52. Additionally, the Postal Service filed 17 library references, 8 of which are USPS–T–1. USPS–T–2. USPS–T–3. USPS–T–4. USPS–T–5. None filed. available to the public and 9 of which are designated as non-public material. TABLE 4—POSTAL SERVICE LIBRARY REFERENCES USPS–LR–N2024–1–1 .......... USPS–LR–N2024–1–2 .......... USPS–LR–N2024–1–3 .......... USPS–LR–N2024–1–4 .......... USPS–LR–N2024–1–5 .......... USPS–LR–N2024–1–6 .......... USPS–LR–N2024–1–7 .......... USPS–LR–N2024–1–8 .......... USPS–LR–N2024–1–NP1 ..... USPS–LR–N2024–1–NP2 ..... USPS–LR–N2024–1–NP3 ..... USPS–LR–N2024–1–NP4 ..... USPS–LR–N2024–1–NP5 ..... USPS–LR–N2024–1–NP6 ..... USPS–LR–N2024–1–NP7 ..... USPS–LR–N2024–1–NP8 ..... USPS–LR–N2024–1–NP9 ..... RTO Determination Based on Distance from RPDC ........................................................ Planned RPDCs and LPCs ............................................................................................... Service Standard Changes to Market Dominant Products ............................................... Revised USPS Service Performance Measurement Plan ................................................ Revised Implementation Document for Service Performance Measurement Plan .......... Market Dominant Mail Volume Impact Analysis in Future State ...................................... Legacy Processing Assignments ...................................................................................... Facilities and Operating Cost Savings from STC Insourcing ........................................... LTO Model Explanation and Pilot Results ........................................................................ Leg 2 Modeling Inputs, Explanation and Results ............................................................. Service Standard Changes to Competitive Products ........................................................ Competitive Products Volume with Start-the-Clock on Saturday or Day Before Holiday Competitive Product Mail Volume Impact Analysis in Future State ................................. Impacts on Pharmaceutical Volume .................................................................................. Competitive Product Volume Impact in Future State ........................................................ LDC Productivity Rates and Workhours ........................................................................... Site-Specific Machine Productivity Information ................................................................. Stephen Hagenstein. Stephen Hagenstein. Stephen Hagenstein. Arslan Saleem. Arslan Saleem. Arslan Saleem. Gregory White. Gregory White. Stephen Hagenstein. Stephen Hagenstein. Stephen Hagenstein. Arslan Saleem. Arslan Saleem. Arslan Saleem. Arslan Saleem. Gregory White. Gregory White. ddrumheller on DSK120RN23PROD with NOTICES1 Note: The Postal Service filed the non-public library reference under seal (shaded in the above table), asserting it consists of commercially sensitive business information, specifically transportation costs and modeling, information related to the Postal Service’s competitive products, and site- and machine-specific processing capabilities and productivity rates for competitive products. See Notice of United States Postal Service of Filing of Library References and Application for Non-Public Treatment, October 4, 2024, Application of the United States Postal Service for Non-Public Treatment at 4–8. IV. Initial Administrative Actions A. General Procedures The procedural rules in 39 CFR part 3020 apply to Docket No. N2024–1. Before issuing its advisory opinion, the Commission shall accord an opportunity for a formal, on-the-record VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 hearing pursuant to 5 U.S.C. 556 and 557. 39 U.S.C. 3661(c). The Commission will sit en banc for Docket No. N2024– 1. See 39 CFR 3020.122(b). The form and manner for any hearings to be held in Docket No. N2024–1 shall be established by Commission Order or Presiding Officer Ruling at a later date. PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 B. Scope Docket No. N2024–1 is limited in scope to the specific changes proposed by the Postal Service in its Request. See 39 CFR 3020.102(b). To the extent that participants raise alternative proposals and present reasons why those alternatives may be superior to the E:\FR\FM\17OCN1.SGM 17OCN1 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices Postal Service’s proposal, the Commission would interpret such discussion as critiquing the specific changes proposed by the Postal Service in its Request.5 However, the Commission would not evaluate or opine on the merits of such alternative proposals in its advisory opinion. See Order No. 2080 at 18. Pursuant to its discretion, the Commission may undertake evaluation of alternatives or other issues raised by participants in separate proceedings (such as special studies or public inquires). See 39 CFR 3020.102(b). Moreover, any interested person may petition the Commission to initiate a separate proceeding (such as a rulemaking or public inquiry) at any time. See 39 CFR 3010.201(b) (initiation of notice and comment proceedings). C. Designation of Presiding Officer Pursuant to 39 CFR 3010.106, the Commission appoints Stephanie A. Quick to serve as presiding officer in Docket No. N2024–1, effective immediately. Ms. Quick shall have the authority delegated to the presiding officer under 39 CFR 3010.106(c), except for regulating the course of public conferences and hearings. See 39 CFR 3010.106(c)(2). The Commission expands Ms. Quick’s authority to allow her to propound formal discovery requests upon any party, at her discretion. The numerical limitation on interrogatories appearing in 39 CFR 3020.117(a) shall not apply to the presiding officer. The Commission also authorizes the presiding officer to rule on procedural issues such as motions for late acceptance and discoveryrelated matters such as motions to be excused from answering discovery requests. The presiding officer shall have authority to issue any ruling in this docket not otherwise specifically reserved to the Commission by 39 CFR 3020 and 3010.106. Commissioner Ashley Poling shall preside over the technical conference and any hearings conducted as part of this proceeding. Commissioner Poling shall have all the authority of the presiding officer, including but not limited to convening, adjourning, and ruling on oral motions made during the hearings. ddrumheller on DSK120RN23PROD with NOTICES1 D. Procedural Schedule The Commission establishes a procedural schedule, which appears below the signature of this Order as Attachment 1. See 39 CFR 3010.151, 3020.110; see also 39 CFR part 3020 5 See Docket No. RM2012–4, Order Adopting Amended Rules of Procedure for Nature of Service Proceedings Under 39 U.S.C. 3661, May 20, 2014, at 18 (Order No. 2080). VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 appendix A. Generally, the procedural schedule for a nature of service proceeding requires that the advisory opinion be issued within 90 days from the date of the filing of the Postal Service’s request. See 39 CFR 3020.110. Due to the breadth and complexity of the Postal Service’s request, as well as the number of federal holidays that occur in the next 90 days, the Commission finds good cause to deviate from the pro forma procedural schedule, including extending the issuance date of the advisory opinion to 120 days. See 39 CFR part 3020 appendix A. These dates may be further changed if good cause is shown, if the Commission later determines that the Request is incomplete, if the Commission determines that the Postal Service has significantly modified the Request, or for other reasons as determined by the Commission. See 39 CFR 3020.110(b) and (c). E. How To Access Material Filed in This Proceeding 1. Using the Commission’s Website The public portions of the Postal Service’s filing are available for review on the Commission’s website (https:// www.prc.gov). The Postal Service’s electronic filing of the Request and prepared direct evidence effectively serves the persons who participated in the pre-filing conference. See 39 CFR 3020.104. Other material filed in this proceeding will be available for review on the Commission’s website, unless the information contained therein is subject to an application for non-public treatment. 2. Using Methods Other Than the Commission’s Website The Postal Service must serve hard copies of its Request and prepared direct evidence ‘‘only upon those persons who have notified the Postal Service, in writing, during the pre-filing conference(s), that they do not have access to the Commission’s website.’’ 39 CFR 3020.104. If you demonstrate that you are unable to effectively use the Commission’s Filing Online system or are unable to access the internet, then the Secretary of the Commission will serve material filed in Docket No. N2024–1 upon you via First-Class Mail. See 39 CFR 3010.127(b) and (c). You may request physical service by mailing a document demonstrating your need to the Office of Secretary and Administration, Postal Regulatory Commission, 901 New York Avenue NW, Suite 200, Washington, DC 20268– 0001. Pursuant to 39 CFR 3010.127(c), the Secretary shall maintain a service PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 83713 list identifying no more than two individuals designated for physical service of documents for each party intervening in this proceeding. Accordingly, each party must ensure that its listing is accurate and should promptly notify the Secretary of any errors or changes. See 39 CFR 3010.127(c). 3. Non-Public Material The Commission’s rules on how to file and access non-public material appear in 39 CFR part 3011. Each individual seeking non-public access must familiarize themselves with these provisions, including the rules governing eligibility for access; nondissemination, use, and care of the nonpublic material; sanctions for violations of protective conditions; and how to terminate or amend access. See 39 CFR 3011.300, 3011.302–.304. Any person seeking access to non-public material must file a motion with the Commission containing the information required by 39 CFR 3011.301(b)(1)–(4). Each motion must attach a description of the protective conditions and a certification to comply with protective conditions executed by each person or entity (and each individual working on behalf of the person or entity) seeking access. 39 CFR 3011.301(b)(5)–(6). To facilitate compliance with 39 CFR 3011.301(b)(5)–(6), a template Protective Conditions Statement and Certification to Comply with Protective Conditions appears below the signature of this Order as Attachment 2, for completion and attachment to a motion for access. See 39 CFR part 3011 subpart C, appendix A. Persons seeking access to non-public material are advised that actual notice provided to the Postal Service pursuant to 39 CFR 3011.301(b)(4) will expedite resolution of the motion, particularly if the motion for access is uncontested by the Postal Service. Non-public information must be redacted from filings submitted through the Commission’s website; instead, nonpublic information must be filed under seal as required by 39 CFR part 3011 subpart B. F. How To File Material in This Proceeding 1. Using the Commission’s Filing Online System Except as provided in 39 CFR 3010.120(a),6 all material filed with the 6 The Commission’s Filing Online system allows account holders to file materials that contain nonpublic information. See Postal Regulatory Commission eDockets User Guide, at 39, available E:\FR\FM\17OCN1.SGM Continued 17OCN1 83714 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices Commission shall be submitted in electronic format using the Filing Online system, which is available over the internet through the Commission’s website. The Commission’s website accepts filings during the Commission’s regular business hours, which are from 8:00 a.m. through 4:30 p.m. Eastern Time (ET), except for Saturdays, Sundays, and Federal holidays. A guide to using the Filing Online system, including how to create an account, is available at https://www.prc.gov/how-toparticipate. If you have questions about how to use the Filing Online system, please contact the dockets clerk by email at dockets@prc.gov or telephone at (202) 789–6800, option 2. Please be advised that the dockets clerk can only answer procedural questions but may not provide legal advice or recommendations. 2. Using Methods Other Than the Commission’s Filing Online System Material may be filed using a method other than the Commission’s website only if at least one of the following exceptions applies: • The material cannot reasonably be converted to electronic format, • The filer is unable to effectively use the Commission’s Filing Online system and the document is 10 pages or fewer, or • The Secretary has approved an exception to the requirements to use the Commission’s Filing Online system based on a showing of good cause. 39 FR 3010.120(a). Material subject to these exceptions may be filed by mail to the Office of Secretary and Administration, Postal Regulatory Commission, 901 New York Avenue NW, Suite 200, Washington, DC 20268–0001. The posting of mailed materials to the Commission’s website may be delayed. ddrumheller on DSK120RN23PROD with NOTICES1 G. Technical Conference 1. Date and Purpose A technical conference will be held live via Microsoft Teams on October 16, 2024, at 1:00 p.m. ET. The technical conference is an informal, off-the-record opportunity to clarify technical issues as well as to identify and request information relevant to evaluating the Postal Service’s proposed changes. See 39 CFR 3020.115(c). The technical at https://www.prc.gov/sites/default/files/ PRC%20eFiling%20User%20Guide_06092023.pdf. The filer must adhere to the requirements of 39 CFR 3011 subpart B, including the requirement to concomitantly provide an application for nonpublic treatment, a redacted (public) version of the non-public materials, and an unredacted (sealed) version of the non-public materials. See 39 CFR 3011.200(a). VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 conference will be limited to information publicly available in the Request. Any non-public information, including information in non-public library references attached to the Request, should not be raised at the technical conference. At the technical conference, the Postal Service will make available for questioning its five witnesses whose direct testimony was filed along with the Request and a sixth individual to serve as its institutional witness, who will provide information relevant to the Postal Service’s proposal that is not provided by other Postal Service witnesses. See Request at 51–52; see also 39 CFR 3020.113(b)(6)–(7), 3020.115(b). The names and topics to which these six individuals are prepared to address are summarized above in section III.C., table 3, infra. 2. How To Livestream the Technical Conference The technical conference will be broadcast to the public via livestream, which will allow the public to view and listen to the technical conference, as it is occurring and after. To view and listen to the livestream, on or after 1 p.m. ET on October 16, 2024, an individual must click on the internet link that will be identified on the Commission’s YouTube Channel, which is available at https:// www.youtube.com/channel/UCbHvKS8CJFT5yNQe4MkTiQ. Individuals do not have to register in advance to access the livestream. Please note that the livestream is a broadcast; therefore, there is a brief delay (several seconds) between the technical conference being captured on camera and being displayed to viewers of the livestream. Additionally, please note that clicking on the livestream link will not allow an individual the opportunity to question the Postal Service’s six witnesses. Details on how to participate in the live technical conference event (and have the opportunity to question the Postal Service’s six witnesses) follow. 3. How To Participate in the Technical Conference To participate in this live technical conference and have the opportunity to ask questions of the Postal Service’s six witnesses, an individual need not formally intervene in this docket but must register in advance as follows. Each individual seeking to participate in the live technical conference via Microsoft Teams using an individual device (e.g., a desktop computer, laptop, tablet, or smart phone) must register by sending an email to Registration@ prc.gov, with the subject line ‘‘N2024– 1 Conference Registration’’ by October PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 15, 2024. In order to facilitate orderly public participation, this email shall provide the following information: • your first and last name; • your email address (to receive the Microsoft Teams link); • the name(s) of the Postal Service witness(es) you would like to question and/or the topic(s) of your question(s); and • your affiliation (if you are participating in your capacity as an employee, officer, or member of an entity such as a corporation, association, or government agency). The Registration@prc.gov email address is established solely for the exchange of information relating to the logistics of registering for, and participating in, the technical conference.7 No information related to the substance of the Postal Service’s Request shall be communicated, nor shall any information provided by participants apart from the list identified above be reviewed or considered. Only documents filed with the Commission’s docket system will be considered by the Commission. Before the technical conference, the Commission will email each identified individual a Microsoft Teams link, an explanation of how to connect to the technical conference, and information regarding the schedule and procedures to be followed. 4. Availability of Materials and Recording To facilitate discussion of the matters to be explored at the technical conference, the Postal Service shall, if necessary, file with the Commission any materials not already filed in Docket No. N2024–1 (such as PowerPoint presentations or Excel spreadsheets) that the Postal Service expects to present at the technical conference by October 15, 2024. Doing so will foster an orderly discussion of the matters under consideration and facilitate the ability of individuals to access these materials should technical issues arise for any participants during the live technical conference. If feasible, the recording will be available on the Commission’s YouTube Channel at https:// www.youtube.com/channel/UCbHvKS8CJFT5yNQe4MkTiQ. Participants in the live technical conference, by participating, consent to such recording and posting. Information obtained during the technical conference or as a result of the technical conference is not part of the decisional record, unless admitted under the 7 Please refer to the Commission’s privacy policy which is available at https://www.prc.gov/privacy. E:\FR\FM\17OCN1.SGM 17OCN1 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices standards of 39 CFR 3010.322. See 39 CFR 3020.115(e). The Commission reserves the right to cancel the technical conference should no parties register an intent to question the Postal Service’s six witnesses. H. How To Intervene (Become a Party to This Proceeding) To become a party to this proceeding, a person or entity must file a notice of intervention by October 21, 2024.8 This filing must clearly and concisely state: (1) the nature and extent of the intervenor’s interest in the issues (including the postal services used); (2) the intervenor’s position on the proposed changes in services (to the extent known); (3) whether or not the intervenor requests a hearing; and (4) whether or not the intervenor intends to actively participate in the hearing. See 39 CFR 3010.142(b). Page one of this filing shall contain the name and full mailing address of no more than two persons who are to receive service, when necessary, of any documents relating to this proceeding. See id. A party may participate in discovery; file testimony and evidence; conduct written examination of witnesses; conduct limited oral cross-examination; file briefs, motions, and objections; and present argument before the Commission or the presiding officer. See id. sections 3010.142(a); 3020.122(e). An opposition to a notice of intervention is due within 3 days after the notice of intervention is filed. See id. section 3010.142(d)(2). I. Discovery ddrumheller on DSK120RN23PROD with NOTICES1 1. Generally Applicable Discovery Procedures Discovery requests may be propounded upon filing a notice of intervention. Discovery that is reasonably calculated to lead to admissible evidence is allowed. See 39 CFR 3020.116(a). Each party must familiarize themselves with the Commission’s rules appearing in 39 CFR part 3020, including the rules for discovery in N-dockets generally and specific to interrogatories, requests for the production of documents, and requests for admissions. See 39 CFR 3020.116–3020.119. No party may propound more than a total of 25 interrogatories (including both initial and follow-up interrogatories) without 8 Neither the Public Representative nor the Postal Service must file a notice of intervention; both are automatically deemed parties to this proceeding. See 39 CFR 3010.142(a). VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 prior approval by the Commission or presiding officer.9 Each answer to a discovery request is due within 7 days after the discovery request is filed.10 Any motion seeking to be excused from answering any discovery request is due within 3 days after the discovery request is filed. See 39 CFR 3020.105(b)(1). Any response to such motion is due within 2 days after the motion is filed. See id. section 3020.105(b)(2). The Commission expects parties to make judicious use of discovery, objections, and motions practice, and encourages parties to make every effort to confer to resolve disputes informally before bringing disputes to the Commission to resolve. 2. Discovery Deadlines for the Postal Service’s Direct Case All discovery requests regarding the Postal Service’s direct case must be filed by November 5, 2024. All discovery answers by the Postal Service must be filed by November 12, 2024. The parties are urged to initiate discovery promptly, rather than to defer filing requests and answers to the end of the period established by the Commission. J. Rebuttal Case Deadlines A rebuttal case is any evidence and testimony offered to disprove or contradict the evidence and testimony submitted by the Postal Service. A rebuttal case does not include crossexamination of the Postal Service’s witnesses or argument submitted via a brief or statement of position. Any party that intends to file a rebuttal case must file a notice confirming its intent to do so by November 27, 2024. Any rebuttal case, consisting of any testimony and all materials in support of the case, must be filed by December 4, 2024. K. Surrebuttal Case Deadlines A surrebuttal case is any evidence and testimony offered to disprove or contradict the evidence and testimony submitted by the rebutting party. A surrebuttal case does not include crossexamination of the rebutting party’s witnesses or argument submitted via a brief or statement of position. Any party that intends to file a surrebuttal case must obtain the Commission’s prior approval and must bear the burden of demonstrating exceptional circumstances that would warrant 9 See 39 CFR 3020.117(a); Order No. 2080 at 42; see also Docket No. N2021–1, Order Affirming Presiding Officer’s Ruling No. N2021–1/9, May 26, 2021, at 9 (Order No. 5901). 10 See 39 CFR 3020.117(b)(4), 3020.118(b)(1), 3020.119(b)(1). Filing an opposition to a notice of intervention shall not delay this deadline. See 39 CFR 3010.142(d)(3). PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 83715 granting the motion. See 39 CFR 3020.121(b). Any motion for leave to file a surrebuttal case is due December 6, 2024. Any response to such motion is due December 10, 2024. Any surrebuttal case, consisting of any testimony and all materials in support of the case, must be filed by December 13, 2024. L. Hearing Dates The Commission expects that this case will require no more than 1 or 2 business days for hearing, but reserves 3 business days out of an abundance of caution and consistent with the pro forma schedule set forth in appendix A of 39 CFR part 3020. If no party files a notice of intent to file a rebuttal case by November 27, 2024, then the hearing of the Postal Service’s direct case shall begin December 4, 2024, with additional days reserved on December 5, 2024, and December 6, 2024. If any party files a notice of intent to file a rebuttal case by November 27, 2024, but no surrebuttal testimony will be presented, then the hearing of the Postal Service’s direct case shall begin December 11, 2024, with additional days reserved on December 12, 2024, and December 13, 2024. If any party files a notice of intent to file a rebuttal case by November 27, 2024, and the Commission approves the presentation of surrebuttal testimony, then the hearing of the Postal Service’s direct case shall begin December 18, 2024, and the hearing of the surrebuttal case shall end December 20, 2024. M. Presentation of Evidence and Testimony Evidence and testimony shall be in writing and may be accompanied by a trial brief or legal memoranda. 39 CFR 3020.122(e)(1). Whenever possible and particularly for factual or statistical evidence, written cross-examination will be used in lieu of oral crossexamination. Id. section 3020.122(e)(2). Oral cross-examination will be allowed to clarify written crossexamination and/or to test assumptions, conclusions, or other opinion evidence. Id. section 3020.122(e)(3). Assuming that no rebuttal case is filed, any party that intends to conduct oral crossexamination shall file a notice of intent to do so by November 25, 2024. The notice must include an estimate of the amount of time requested for each witness. In lieu of submitting hard copy documents to the Commission as contemplated by 39 CFR 3020.122(e)(2), each party shall file a single document titled ‘‘Notice of Designations’’ containing a list for each witness that identifies the materials to be designated E:\FR\FM\17OCN1.SGM 17OCN1 83716 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices (without the responses). The filing party shall arrange its list for each witness in alphabetical order by the name of the party propounding the interrogatory followed by numerical order of the interrogatory. For example: Designations for Witness One ABC/USPS–T1–1 ABC/USPS–T1–3 DEF/USPS–T1–1 GHI/USPS–T1–3 JKL/USPS–T1–2 Designations for Witness Two DEF/USPS–T2–4 GHI/USPS–T2–2 Assuming that no rebuttal case is filed, each party shall file its Notice of Designations by November 26, 2024. Assuming that no rebuttal case is filed, on December 2, 2024, the Postal Service shall file a ‘‘Notice of Designated Materials’’ identifying any corrections to the testimony or designated materials for each witness sponsored by the Postal Service. Attached to that notice shall be an Adobe PDF file that contains the witness’s designated written responses in alphabetical order by the name of the party propounding the interrogatory followed by numerical order of the interrogatory (with any corrections to the responses highlighted). The Postal Service shall also contemporaneously file any corrections to testimony (with those corrections highlighted). N. Presentation of Argument 1. General Procedures Any person that has intervened in Docket No. N2024–1 (and thereby formally became a party to this proceeding) may submit written argument by filing a brief or a statement of position; they also may request to present oral argument at the hearing. See 39 CFR 3020.123; see also 39 CFR 3010.142(a). Any person that has not intervened in Docket No. N2024–1 may submit written argument by filing a statement of position. See 39 CFR 3020.123(g); see also 39 CFR 3010.142(a). 2. Presentation of Written Argument ddrumheller on DSK120RN23PROD with NOTICES1 A brief is a written document that addresses relevant legal and evidentiary issues for the Commission to consider and must adhere to the requirements of 39 CFR 3020.123(a)–(f). A statement of position is a less formal version of a brief that describes the filer’s position on the Request and the information on the existing record in support of that position. See 39 CFR 3020.123(g). a. Briefing Deadlines Assuming that no rebuttal case is filed, initial briefs are due December 12, 2024, and reply briefs are due December 19, 2024. If any party files a notice confirming its intent to file a rebuttal case by November 27, 2024, then the briefing schedule may be revised. b. Deadline for Statement of Position Any interested person, including anyone that has not filed a notice of intervention and become a party to this proceeding, may file a statement of position. See 39 CFR 3020.123(g); see also 39 CFR 3010.142(a). A statement of position is limited to the existing record and may not include any new evidentiary material. See 39 CFR 3020.123(g). Filings styled as a brief or comments, conforming with the content and timing requirements, shall be deemed statements of positions. Any statement of position is due December 12, 2024. 3. Request To Present Oral Argument Oral argument has not historically been part of N-cases; the Commission would only grant a request to present oral argument upon an appropriate showing of need by the presenting party. See Order No. 2080 at 53. Assuming that no rebuttal case is filed, any party may file a request to present oral argument by November 25, 2024. O. The Commission’s Advisory Opinion In section IV.D., the Commission stated that it found good cause to modify the procedural schedule such that the Commission shall issue its advisory opinion within 120 days of the filing of the Request. Therefore, absent a determination of good cause for further extension, the Commission shall issue its advisory opinion in this proceeding by January 31, 2025. ‘‘The opinion shall be in writing and shall include a certification by each Commissioner agreeing with the opinion that in his [or her] judgment the opinion conforms to the policies established under [title 39, United States Code].’’ 39 U.S.C. 3661(c). The advisory opinion shall address the specific changes proposed by the Postal Service in the nature of postal services. See 39 CFR 3020.102(b). The Commission encourages the Postal Service to consider the recommendations from the advisory opinion before moving forward with implementation. P. Public Representative Pursuant to 39 U.S.C. 3661(c), Ping Gong shall continue to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding. See Order No. 7414 at 3. V. Ordering Paragraphs It is ordered: 1. The procedural schedule for this proceeding is set forth below the signature of this Order. 2. Pursuant to 39 CFR 3010.106 and 3020.122(b), the Commission appoints Stephanie A. Quick to serve as presiding officer in Docket No. N2024–1, effective immediately. 3. Stephanie A. Quick is authorized to propound formal discovery requests upon any party, at her discretion. The numerical limitation on interrogatories appearing in 39 CFR 3020.117(a) shall not apply to the Presiding Officer. 4. Stephanie A. Quick is authorized to rule on procedural issues such as motions for late acceptance and discovery-related matters such as motions to be excused from answering discovery requests. 5. Stephanie A. Quick is authorized to make other rulings in this Docket not otherwise specifically reserved to the Commission according to 39 CFR 3020 and 3010.106. 6. Pursuant to 39 U.S.C. 3661(c), Ping Gong shall continue to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding. 7. The Secretary shall arrange for publication of this Order in the Federal Register. By the Commission. Erica A. Barker, Secretary. PROCEDURAL SCHEDULE FOR DOCKET NO. N2024–1 [Established by the Commission, October 8, 2024] Technical Conference Dates: Deadline to Email Registration@prc.gov to Register to Participate in the Live Technical Conference via Microsoft Teams. Filing of the Postal Service’s Materials (if any) for the Technical Conference .......................................... VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 E:\FR\FM\17OCN1.SGM October 15, 2024. October 15, 2024. 17OCN1 83717 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices PROCEDURAL SCHEDULE FOR DOCKET NO. N2024–1—Continued [Established by the Commission, October 8, 2024] Technical Conference (live via Microsoft Teams) ...................................................................................... ddrumheller on DSK120RN23PROD with NOTICES1 Intervention Deadline: Filing of Notice of Intervention .................................................................................................................... Discovery Deadlines for the Postal Service’s Direct Case: Last Filing of Discovery Requests .............................................................................................................. Filing of the Postal Service’s Answers to Discovery .................................................................................. Deadlines in Preparation for Hearing (assuming no rebuttal case): Filing of Notice Confirming Intent to Oral Conduct Cross-Examination ..................................................... Filing of Request to Present Oral Argument .............................................................................................. Filing of Notice of Designations (Parties) ................................................................................................... Filing of Notices of Designated Materials (Postal Service) ........................................................................ Rebuttal Case Deadlines (if applicable): Filing of Notice Confirming Intent to File a Rebuttal Case ......................................................................... Filing of Rebuttal Case ............................................................................................................................... Surrebuttal Case Deadlines (if applicable): Filing of Motion for Leave to File Surrebuttal Case ................................................................................... Filing of Response to Motion for Leave to File Surrebuttal Case .............................................................. Filing of Surrebuttal Case (if authorized) .................................................................................................... Hearing Dates: Hearings (with no Rebuttal Case) .............................................................................................................. Hearings (with Rebuttal Case, but no authorized Surrebuttal Case) ......................................................... Hearings (with Rebuttal Case and authorized Surrebuttal Case) .............................................................. Briefing Deadlines: Filing of Initial Briefs (with no Rebuttal Case) ............................................................................................ Filing of Reply Briefs (with no Rebuttal Case) ........................................................................................... Statement of Position Deadline: Filing of Statement of Position (with no Rebuttal Case) ............................................................................ Advisory Opinion Deadline: Filing of Advisory Opinion ........................................................................................................................... Docket N2024–1 Template To Attach To Motion for Access to Non-Public Material Protective Conditions Statement The Postal Service requests confidential treatment of non-public materials identified as lll (nonconfidential description of non-public materials) (hereinafter ‘‘these materials’’) in Commission Docket No. N2024–1. lll (name of participant filing motion) (hereinafter ‘‘the movant’’) requests access to these materials related to Commission Docket No. N2024–1 (hereinafter ‘‘this matter’’). The movant has provided to each person seeking access to these materials: Æ This Protective Conditions Statement; Æ The Certification to Comply with Protective Conditions; Æ The Certification of Compliance with Protective Conditions and Termination of Access; and Æ The Commission’s rules applicable to access to non-public materials filed in Commission proceedings (subpart C of part 3011 of the U.S. Code of Federal Regulations). Each person (and any individual working on behalf of that person) seeking access to these materials has executed a Certification to Comply with Protective Conditions by signing in ink or by typing /s/ before his or her name in the signature block. The movant VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 attaches the Protective Conditions Statement and the executed Certification(s) to Comply with Protective Conditions to the motion for access filed with the Commission. The movant and each person seeking access to these materials agree to comply with the following protective conditions: 1. In accordance with 39 CFR 3011.303, the Commission may impose sanctions on any person who violates these protective conditions, the persons or entities on whose behalf the person was acting, or both. 2. In accordance with 39 CFR 3011.300(b), no person involved in competitive decision-making for any individual or entity that might gain competitive advantage from using these materials shall be granted access to these materials. Involved in competitive decision-making includes consulting on marketing or advertising strategies, pricing, product research and development, product design, or the competitive structuring and composition of bids, offers or proposals. It does not include rendering legal advice or performing other services that are not directly in furtherance of activities in competition with an individual or entity having a proprietary interest in the protected material. 3. In accordance with 39 CFR 3011.302(a), a person granted access to PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 October 16, 2024, at 1:00 p.m. Eastern Time (ET). October 21, 2024. November 5, 2024. November 12, 2024. November November November December 25, 2024. 25, 2024. 26, 2024. 2, 2024. November 27, 2024. December 4, 2024. December 6, 2024. December 10, 2024. December 13, 2024. December 4 to 6, 2024. December 11 to 13, 2024. December 18 to 20, 2024. December 12, 2024. December 19, 2024. December 12, 2024. January 31, 2025. these materials may not disseminate these materials in whole or in part to any person not allowed access pursuant to 39 CFR 3011.300(a) (Commission and court personnel) or 3011.301 (other persons granted access by Commission order) except in compliance with: a. Specific Commission order, b. Subpart B of 39 CFR 3011 (procedure for filing these materials in Commission proceedings), or c. 39 CFR 3011.305 (production of these materials in a court or other administrative proceeding). 4. In accordance with 39 CFR 3011.302(b) and (c), all persons granted access to these materials: a. Must use these materials only related to this matter; and b. Must protect these materials from any person not authorized to obtain access under 39 CFR 3011.300 or 3011.301 by using the same degree of care, but no less than a reasonable degree of care, to prevent the unauthorized disclosure of these materials as those persons, in the ordinary course of business, would be expected to use to protect their own proprietary material or trade secrets and other internal, confidential, commercially sensitive, and privileged information. 5. The duties of each person granted access to these materials apply to all: E:\FR\FM\17OCN1.SGM 17OCN1 83718 Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices a. Disclosures or duplications of these materials in writing, orally, electronically, or otherwise, by any means, format, or medium; b. Excerpts from, parts of, or the entirety of these materials; c. Written materials that quote or contain these materials; and d. Revised, amended, or supplemental versions of these materials. 6. All copies of these materials will be clearly marked as ‘‘Confidential’’ and bear the name of the person granted access. 7. Immediately after access has terminated pursuant to 39 CFR 3011.304(a)(1), each person (and any individual working on behalf of that person) who has obtained a copy of these materials must execute the Certification of Compliance with Protective Conditions and Termination of Access. In compliance with 39 CFR 3011.304(a)(2), the movant will attach the executed Certification(s) of Compliance with Protective Conditions and Termination of Access to the notice of termination of access filed with the Commission. 8. Each person granted access to these materials consents to these or such other conditions as the Commission may approve. Respectfully submitted, /s/ lllllllllllllllllll Attorney/Non-Attorney Representative for (signature of representative) (print name of representative) (address line 1 of representative) (address line 2 of representative) (telephone number of representative) (e-mail address of representative) (choose the appropriate response) (name of the movant) You may delete the instructional text to complete this form. This form may be filed as an attachment to the motion for access to non-public materials under 39 CFR 3011.301(b)(5). ddrumheller on DSK120RN23PROD with NOTICES1 Certification To Comply With Protective Conditions The Postal Service requests confidential treatment of non-public materials identified as lll (nonconfidential description of non-public materials) (hereinafter ‘‘these materials’’) filed in Commission Docket No. N2024–1. lll (name of participant filing motion) requests that the Commission grant me access to these materials to use related to Docket No. N2024–1 (hereinafter ‘‘this matter’’). I certify that: Æ I have read and understand the Protective Conditions Statement and VerDate Sep<11>2014 18:31 Oct 16, 2024 Jkt 265001 this Certification to Comply with Protective Conditions; Æ I am eligible to receive access to these materials because I am not involved in competitive decisionmaking for any individual or entity that might gain competitive advantage from using these materials; and Æ I will comply with all protective conditions established by the Commission. /s/ lllllllllllllllllll (signature of individual receiving access) (print name of individual receiving access) (title of individual receiving access) (employer of individual receiving access) (name of the participant filing the motion) (date) You may delete the instructional text to complete this form. This form may be filed as an attachment to the motion for access to non-public materials under 39 CFR 3011.301(b)(6). [FR Doc. 2024–23853 Filed 10–16–24; 8:45 am] BILLING CODE 7710–FW–P POSTAL REGULATORY COMMISSION and K2025–45; MC2025–47 and K2025–46; MC2025–48 and K2025–47; MC2025–49 and K2025–48; MC2025–50 and K2025–49; MC2025–51 and K2025–50; MC2025–52 and K2025–51; MC2025–53 and K2025–52; MC2025–54 and K2025–53; MC2025–55 and K2025–54; MC2025–56 and K2025–55; MC2025–57 and K2025–56; MC2025–59 and K2025–57; MC2025–60 and K2025–58; MC2025–61 and K2025–59; MC2025–62 and K2025–60] New Postal Products Postal Regulatory Commission. Notice. AGENCY: ACTION: The Commission is noticing a recent Postal Service filing for the Commission’s consideration concerning a negotiated service agreement. This notice informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: October 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: PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: Table of Contents I. Introduction II. Public Proceeding(s) III. Summary Proceeding(s) I. Introduction Pursuant to 39 CFR 3041.405, the Commission gives notice that the Postal Service filed request(s) for the Commission to consider matters related to Competitive negotiated service agreement(s). The request(s) may propose the addition of a negotiated service agreement from the Competitive product list or the modification of an existing product currently appearing on the Competitive product list. The public portions of the Postal Service’s request(s) can be accessed via the Commission’s website (https:// www.prc.gov). Non-public portions of the Postal Service’s request(s), if any, can be accessed through compliance with the requirements of 39 CFR 3011.301.1 Section II identifies the docket number(s) associated with each Postal Service request, if any, that will be reviewed in a public proceeding as defined by 39 CFR 3010.101(p), the title of each such request, the request’s acceptance date, and the authority cited by the Postal Service for each request. For each such request, the Commission appoints an officer of the Commission to represent the interests of the general public in the proceeding, pursuant to 39 U.S.C. 505 and 39 CFR 3000.114 (Public Representative). Section II also establishes comment deadline(s) pertaining to each such request. The Commission invites comments on whether the Postal Service’s request(s) identified in Section II, if any, are consistent with the policies of title 39. Applicable statutory and regulatory requirements include 39 U.S.C. 3632, 39 U.S.C. 3633, 39 U.S.C. 3642, 39 CFR part 3035, and 39 CFR part 3041. Comment deadline(s) for each such request, if any, appear in Section II. Section III identifies the docket number(s) associated with each Postal Service request, if any, to add a standardized distinct product to the Competitive product list or to amend a standardized distinct product, the title of each such request, the request’s acceptance date, and the authority cited by the Postal Service for each request. 1 See Docket No. RM2018–3, Order Adopting Final Rules Relating to Non-Public Information, June 27, 2018, Attachment A at 19–22 (Order No. 4679). E:\FR\FM\17OCN1.SGM 17OCN1

Agencies

[Federal Register Volume 89, Number 201 (Thursday, October 17, 2024)]
[Notices]
[Pages 83708-83718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23853]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket No. N2024-1; Order No. 7695]


Service Standard Changes

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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

SUMMARY: The Commission is acknowledging a recently-filed Postal 
Service request for an advisory opinion regarding planned changes to 
its processing and transportation networks. This document invites 
public comments on the request and addresses several related procedural 
steps.

DATES: Notices of intervention are due: October 21, 2024; Live WebEx 
Technical Conference: October 16, 2024, at 1 p.m., eastern daylight 
time, virtual.

ADDRESSES: Submit notices of intervention electronically via the 
Commission's Filing Online system at https://www.prc.gov. Persons 
interested in intervening who cannot submit their views electronically 
should contact the person identified in the FOR FURTHER INFORMATION 
CONTACT: David A. Trissell, General Counsel, at 202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Pre-Filing Issues
III. The Request
IV. Initial Administrative Actions
V. Ordering Paragraphs

I. Introduction

    On October 4, 2024, the Postal Service filed a request for an 
advisory opinion from the Commission regarding planned changes to its 
processing and transportation networks.\1\ In particular, the Postal 
Service plans to create a nationwide network of Regional Processing and 
Distribution Centers (RPDCs) and Local Processing Centers (LPCs). Id. 
at 3. The Postal Service states that this initiative will ``increase 
throughput, gain productivity, and increase asset utilization across 
the country.'' Id. Additionally, the Postal Service intends to 
implement its Regional Transportation Optimization (RTO) initiative on 
a nationwide basis. Id. The Postal Service states that the RTO 
initiative will ``improve the efficiency and velocity of the processing 
network.'' Id. The Postal Service estimates that these two initiatives 
will allow it ``to achieve estimated cost savings of between $3.6 
billion and $3.7 billion on an annual basis once fully implemented.'' 
Id.
---------------------------------------------------------------------------

    \1\ United States Postal Service's Request for an Advisory 
Opinion on Changes in the Nature of Postal Services, October 4, 2024 
(Request). The Postal Service filed the instant Request at the 
direction of the Commission, following the Postal Service's initial 
presentation of these proposed changes as part of the changes 
associated with the Delivering for America Plan. See Docket No. 
PI2023-4, Order Directing Postal Service to Show Cause or File a 
Nature of Service Proceeding Regarding Certain Delivering for 
America Initiatives, April 26, 2024 (Order No. 7061).
---------------------------------------------------------------------------

    The Postal Service also proposes to revise its service standards 
``to align with these operational initiatives. . . .'' Id. 
Specifically, the Postal Service will

[[Page 83709]]

``transition to 5-Digit to 5-Digit ZIP Code service standards'' that 
reflect ``the three operational legs applicable to the movement of mail 
and packages: collection to origin processing (Leg 1), origin 
processing to destination processing (Leg 2), and destination 
processing to delivery (Leg 3).'' Id. at 4. The Postal Service asserts 
that despite these changes, it will preserve the existing day ranges 
for First-Class Mail, which is currently 1-5 days, and USPS Ground 
Advantage, which is 2-5 days. Id. Additionally, the Postal Service 
intends to ``transition the service standards for end-to-end USPS 
Marketing Mail and USPS Package Services so that they are based on the 
standards for First-Class Mail and USPS Ground Advantage,'' which will 
shorten the day ranges for those products as compared to current 
standards. Id. The Postal Service states that ``[s]ome mail and 
packages will . . . have a service expectation that is longer than the 
current expectation (although still within the current day-ranges)'' if 
its originating 5-Digit ZIP Code is subject to RTO. Id. at 5. Finally, 
the Postal Service states that it will also exclude Sundays and 
holidays as transit days in these new service standards. Id.
    The intended effective date of the Postal Service's planned changes 
is no earlier than 90 days after the filing of the Request. Id. at 48. 
The Request was filed pursuant to 39 U.S.C. 3661 and 39 CFR part 3020. 
Before issuing its advisory opinion, the Commission shall accord an 
opportunity for a formal, on-the-record hearing pursuant to 5 U.S.C. 
556 and 557. 39 U.S.C. 3661(c). This Order provides information on the 
Postal Service's planned changes, explains and establishes the process 
for the on-the-record hearing, and lays out the procedural schedule to 
be followed in this case.

II. Pre-Filing Issues

    On August 22, 2024, the Postal Service filed a notice of its intent 
to conduct a pre-filing conference regarding its plans to transform its 
processing and transportation networks and to revise service standards 
to align with these changes.\2\
---------------------------------------------------------------------------

    \2\ Notice of Pre-Filing Conference, August 22, 2024, at 1.
---------------------------------------------------------------------------

    On August 26, 2024, the Commission issued Order No. 7414, which 
established Docket No. N2024-1 to consider the Postal Service's 
proposed changes, notified the public concerning the Postal Service's 
pre-filing conference, and appointed a Public Representative.\3\ The 
Postal Service held its pre-filing conference virtually on September 5, 
2024, at 1:00 p.m. Eastern Time (ET). See Request at 49. The Postal 
Service certifies that it has made a good faith effort to address 
concerns of interested persons about the Postal Service's proposal 
raised at the pre-filing conference. See id.
---------------------------------------------------------------------------

    \3\ Notice and Order Concerning the Postal Service's Pre-Filing 
Conference, August 26, 2024 (Order No. 7414).
---------------------------------------------------------------------------

III. The Request

A. The Postal Service's Planned Changes

1. Processing and Transportation Networks
    Currently, the Postal Service's legacy processing network consists 
of a mix of Processing and Distribution Centers (P&DCs) and Network 
Distribution Centers (NDCs), combined with ``numerous ancillary 
facilities . . . .'' Id. at 13. As a result of the current processing 
network facilities' conditions and age, their number and the piecemeal 
and ad hoc nature of their implementation, and the lack of operational 
standardization necessary to address the processing of mail and 
packages, the Postal Service determined that it must redesign the 
legacy network and ``construct a network that enables [it] to handle 
mail and packages in a precise, efficient, and integrated manner. . . 
.'' Id. at 13-14. The proposed processing network will be designed 
using a ``regional concept,'' and consist of two standardized facility 
types: (1) Regional Processing and Distribution Centers (RPDCs) and (2) 
Local Processing Centers (LPCs). Id. at 14.
    RPDCs will manage ``the flow of mail and packages that originate or 
destinate in that region.'' Id. at 15. They will ``perform originating 
sortation operations for letters, flats, and packages to the 3-digit 
ZIP Code level, for dispatch to the rest of the country.'' Id. They 
will also ``engage in cross-docking and sortation operations for 
destinating letters, flats, and parcels for dispatch to a LPC.'' Id. 
Finally, they will ``serve as intermediate consolidation points for 
volume that is traveling across the country (known as Regional Transfer 
Hub (RTH) operations).'' Id.
    LPCs will be designed to ``handle destinating letter, flat, and 
package sortation operations for designated 3-Digit ZIP Codes within a 
region, for dispatch to Sorting and Delivery Centers (S&DCs) and 
delivery units.'' Id. at 16. Some LPCs might ``sort and/or cross-dock 
carrier route bundles of flats to S&DCs and delivery units'' or perform 
``certain originating operations'' as designated by the Postal Service. 
Id. They will also act as a consolidation point ``for all volume types 
coming from the delivery network on the way to the RPDC.'' Id.
    Some LPCs might be co-located with RPDCs and some RPDC operations 
might be located ``in a single building or a campus of two or more 
buildings'' based on what the Postal Service determines is most 
efficient and cost-effective. Id. at 15-16. The Postal Service notes 
that each of the functions these new facility categories ``are not 
rigid, and may be subject to varying adjustments and configurations 
based on local operational considerations . . . .'' Id. at 16. The 
Postal Service intends to make these network changes on a region-by-
region basis over the course of multiple years. Id.
    In conjunction with these new facilities, the Postal Service also 
intends to implement its Regional Transportation Optimization (RTO) 
initiative on a nationwide basis. Id. at 21. While, according to the 
Postal Service, ``[t]he volume of mail collected through [its] rental 
facilities (including mail collected on carrier routes and entered at 
Post Offices) has declined substantially in recent decades[,]'' it has 
not ``fundamentally adjusted'' its associated collection processes and 
transportation network to account for the decline. Id. at 19. This has 
resulted in numerous transportation and processing inefficiencies as 
the Postal Service has continued its process of transporting 
destinating mail and packages from the processing network to collection 
or delivery facilities in the morning and transporting originating mail 
from collection or delivery facilities to the processing network in the 
afternoon. Id. at 19-20.
    Instead, under RTO, ``certain collection/delivery facilities will 
have their destinating mail dropped off, and their originating mail 
picked up, on the same transportation route.'' Id. at 22. The Postal 
Service indicates that it will designate 5-Digit ZIP Codes for RTO 
``when the facility from which the collection mail and packages are 
dispatched is more than 50 miles from the RPDC campus.'' Id. According 
to the Postal Service, RTO will enable it to redesign its 
transportation routes to reduce the number of trips and layovers and 
eliminate unnecessary or underutilized trips. Id. at 23.
2. Service Standards
    Currently, the Postal Service's First-Class Mail and USPS Ground 
Advantage service standards ``are predicated on

[[Page 83710]]

plant-to-plant (i.e., on a 3-Digit to 3-Digit ZIP Code) driving 
distances.'' Id. at 27. They do not consider the variations in 
transportation operations that are required to move volume from the 
collection point to the processing network. Id. The Postal Service 
proposes to ``transition to 5-Digit to 5-Digit ZIP Code (i.e. Post 
Office to Post Office) service standards that maintain the existing 
delivery day ranges for both First-Class Mail and USPS Ground Advantage 
. . . .'' Id. at 28. The Postal Service also proposes to ``transition 
the service standards for end-to-end USPS Marketing Mail and Package 
Services so that they are based on the standards for First-Class Mail 
and USPS Ground Advantage, respectively, which will result in a shorter 
day range for these products when compared to the current service 
standards.'' Id.
    Under its proposed approach for inter-RPDC First-Class Mail and 
USPS Ground Advantage, the Postal Service would segment volume into 
three legs: collection to origin processing (Leg 1); origin processing 
facility to destination processing facility (Leg 2); and destination 
processing facility to delivery (Leg 3). Id. at 30. The proposed 
service standards ``will be based on how many days cumulatively apply 
to a particular mailpiece across the three operational legs.'' Id. For 
Leg 1, the Postal Service will ``align our standards with RTO'' and 
apply 1 day to pieces that ``originate in a 5-Digit ZIP Code more than 
50 miles from the RPDC, meaning RTO is being applied, and 0 days will 
apply to pieces originating in other 5-Digit ZIP Codes.'' Id.
    For Leg 2, the Postal Service will ``apply [2-5] days based on the 
travel distance between the originating and destinating processing 
plants'' using the new network outlined above. Id. at 30-31. The 
transit paths will be updated to reflect the new network and ``measure 
the distance between the Origin RPDC and the Destination RPDC and then 
the distance between the Destination RPDC and the Destination LPC.'' 
Id. at 34. With regard to Leg 2, the Postal Service states that because 
RTO and the new and more efficient network will improve arrival 
profiles, ``each of the existing service standard bands will expand by 
four hours for First-Class Mail.'' Id. at 34-36. No additional days 
will be added for Leg 3, ``which is the same as the current 
standards.'' Id. at 30.
    The Leg 1 rules will not apply to ``any products entered at a RPDC, 
Presort First-Class Mail, or any destination-entered volume.'' Id. at 
32. The Postal Service proposes to add an ``extra day for volume that 
is entered in a 5-Digit ZIP Code subject to RTO[ ]'' for its Priority 
Mail and Priority Mail Express products but still ``intends for 
Priority Mail to remain a 1-3 day product,'' and anticipates that 
``Priority Mail Express will be a 1-3 day (guaranteed) product.'' Id. 
at 33-34. Finally, for mail and packages that originate and destinate 
within the same RPDC region, ``[t]he proposed service standards would 
expand the geographic scope of turnaround volume (i.e., volume 
originating and destinating within a facility's service area).'' Id. at 
37. Currently, this ``volume receives a two-day standard.'' Id. Under 
the proposed standards, intra-LPC and intra-RPDC volume will either be 
subject to a 2 or 3-day standard depending on whether the originating 
volume is from a 5-digit ZIP Code beyond 50 miles of the cancellation 
location. Id. ``The standards for end-to-end Marketing Mail, 
Periodicals, and Package Services within a region will also be based on 
these standards.'' Id. The Postal Service outlines the proposed 
standards as follows:
[GRAPHIC] [TIFF OMITTED] TN17OC24.003

Id. at 31.

    Finally, the Postal Service intends to change how it measures 
performance under these standards. Id. at 40. ``Specifically, the 
Postal Service will not count Sundays or holidays as transit days for 
volume entered on a Saturday or the day before a holiday.'' Id. It will 
also ``change the Service Performance Measurement system to enable 
measurement at the 5-Digit ZIP Code level . . . .'' Id.

B. The Postal Service's Position

1. Processing and Transportation Networks
    The Postal Service asserts that these network changes will ``enable 
significant cost reductions in both processing operations and in [its] 
transportation network, while improving the work environment for [its] 
employees.'' Id. at 18. It will enable the Postal Service to more 
efficiently balance its use of ground and air transportation and should 
result in a reduced number of surface and air nodes. Id. The Postal 
Service states that these modifications will eliminate ``unnecessary 
trips'' and increase utilization of the remaining trips. Id. It will 
also allow the Postal Service to further reduce costs through the 
elimination of ``excess facilities.'' Id.
    Additionally, according to the Postal Service, the implementation 
of the RTO initiative on a nationwide basis will ``result in 
significant improvements in transportation and processing operations.'' 
Id. at 22. It will result in a reduced number of trips and layovers, 
which will in turn reduce carbon emissions and increase utilization of 
the Postal Service's transportation

[[Page 83711]]

resources. Id. at 23. The Postal Service also states that the RTO 
initiative will improve ``the efficiency and velocity of the processing 
network,'' by creating efficient ``operating windows in originating and 
processing facilities'' because non-RTO volume may be processed and 
dispatched earlier than under its current transportation policy. Id.
    Overall, the Postal Service estimates that it will save ``between 
$3.6 and $3.7 billion annually in Leg 1 and Leg 2 transportation costs, 
mail and package processing costs, and facility costs[ ]'' through the 
implementation of these two initiatives. Id. at 23. Table 1 below 
details the Postal Service's estimated annual cost savings, organized 
by category. The Postal Service cautions that because it intends to 
implement these initiatives ``through a deliberate implementation plan 
over time,'' that not all savings will be achieved immediately. Id. at 
26. Thus, ``[t]his approach reasonably estimates the expected future 
savings from these initiatives when fully implemented.'' Id.

           Table 1--Estimated Annual Cost Savings by Category
------------------------------------------------------------------------
               Category                  Estimated annual cost savings
------------------------------------------------------------------------
Regional Transportation..............  $651 million.
Network Transportation...............  $1.8 billion ($1.1 billion from
                                        surface transportation and $701
                                        million from air
                                        transportation).
Mail and Package Processing..........  $1.1-$1.2 billion.
Facilities...........................  $81 million.
------------------------------------------------------------------------

Id. at 24-25.
2. Service Standards
    The Postal Service states that under the new standards, ``the 
majority of overall market-dominant volume'' will have ``either the 
same service standards . . . or an accelerated standard.'' Id. at 38. 
And while the specific volume impacts were filed under seal for 
competitive products, the Postal Service states that ``the overall 
impact of these proposed changes is that the majority of packages will 
either have the same service standard or a better standard, consistent 
with the fact that a majority of package volume is entered in ZIP Codes 
that are within 50 miles of'' the processing network. Id. at 40. Table 
2 below details ``the impact on all market-dominant volume, including 
end-to-end and destination entry. Id. at 38.

   Table 2--Estimated Volume Changes Under Proposed Service Standards
------------------------------------------------------------------------
               Products                   Estimated % of volume change
------------------------------------------------------------------------
All Market Dominant Products.........  83% unchanged, 11% upgraded, 6%
                                        downgraded.
First-Class Mail.....................  75% unchanged, 14% upgraded, 11%
                                        downgraded.
Marketing Mail.......................  90% unchanged, 8% upgraded, 2%
                                        downgraded.
Periodicals..........................  93% unchanged, 4% upgraded, 3%
                                        downgraded.
Package Services \4\.................  79% unchanged, 12% upgraded, 9%
                                        downgraded.
------------------------------------------------------------------------

Id. at 38-39.
---------------------------------------------------------------------------

    \4\ Package Services refers to a Market Dominant class of mail 
products intended for non-urgent delivery of books, catalogs, and 
other printed materials such as Media Mail/Library Mail. It does not 
refer to the Postal Service's Competitive package products such as 
USPS Ground Advantage.
[GRAPHIC] [TIFF OMITTED] TN17OC24.004


[[Page 83712]]


Id. at 38.

C. The Postal Service's Direct Case

    The Postal Service is required to file its direct case along with 
the Request. See 39 CFR 3020.114. The Postal Service's direct case 
includes all the prepared evidence and testimony upon which the Postal 
Service proposes to rely on in order to establish that its proposal 
accords with and conforms to the policies of title 39, United States 
Code. See id. The Postal Service provides the direct testimony of five 
witnesses and identifies a sixth individual to serve as its 
institutional witness and provide information relevant to the Postal 
Service's proposal that is not provided by other Postal Service 
witnesses. See Request at 50-52. Table 3 below details the Postal 
Service's direct case, organized by witness.

                                        Table 3--Postal Service Witnesses
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
1. Stephen Hagenstein..................   Description of the proposed       USPS-T-1.
                                          revisions to service standards,
                                          including the three legs.
                                          Explanation of inefficiencies of
                                          current network's first leg.
                                          Description of how RTO
                                          initiative corrects those inefficiencies.
                                          Anticipated flow of mail and
                                          package volume within the RPDC/LPC
                                          network.
                                          Estimated impact of proposed
                                          service standards on 5-Digit ZIP pairs.
2. Arslan Saleem.......................   Explanation of how the proposed   USPS-T-2.
                                          changes will be addressed in measurement
                                          (including through revisions to the
                                          Service Performance Measurement (SPM)
                                          Plan).
                                          Explanation of the exclusion of
                                          Sundays and holidays as transit days.
                                          Estimate of impacts on mail
                                          volumes.
                                          Explanation of performance
                                          measurement based on 5-Digit ZIP code.
3. Leslie Johnson-Frick................   Description of how RTO changes    USPS-T-3.
                                          will not impact local mail collection
                                          and delivery.
                                          Explanation of how local office
                                          operations might change to accommodate
                                          the RTO initiative.
                                          Explanation of how changes will
                                          be communicated to customers.
                                          Explanation of measures to
                                          ensure timely delivery of Election Mail.
4. Gregory White.......................   Explanation of how the RPDC/LPC   USPS-T-4.
                                          network changes and RTO initiative will
                                          improve processing effectiveness and
                                          produce cost savings.
                                          Description of the standard
                                          operating procedures for the RPDCs and
                                          LPCs.
5. Curtis Whiteman.....................   Discussion of the estimated cost  USPS-T-5.
                                          savings.
                                          Description of the methodology
                                          used to calculate the estimated savings.
6. Sharon Owens........................   Institutional witness capable of  None filed.
                                          providing information relevant to the
                                          Postal Service's proposal that is not
                                          provided by other Postal Service
                                          witnesses.
----------------------------------------------------------------------------------------------------------------

Id. at 51-52.
    Additionally, the Postal Service filed 17 library references, 8 of 
which are available to the public and 9 of which are designated as non-
public material.

                                   Table 4--Postal Service Library References
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
USPS-LR-N2024-1-1.......................  RTO Determination Based on Distance from    Stephen Hagenstein.
                                           RPDC.
USPS-LR-N2024-1-2.......................  Planned RPDCs and LPCs....................  Stephen Hagenstein.
USPS-LR-N2024-1-3.......................  Service Standard Changes to Market          Stephen Hagenstein.
                                           Dominant Products.
USPS-LR-N2024-1-4.......................  Revised USPS Service Performance            Arslan Saleem.
                                           Measurement Plan.
USPS-LR-N2024-1-5.......................  Revised Implementation Document for         Arslan Saleem.
                                           Service Performance Measurement Plan.
USPS-LR-N2024-1-6.......................  Market Dominant Mail Volume Impact          Arslan Saleem.
                                           Analysis in Future State.
USPS-LR-N2024-1-7.......................  Legacy Processing Assignments.............  Gregory White.
USPS-LR-N2024-1-8.......................  Facilities and Operating Cost Savings from  Gregory White.
                                           STC Insourcing.
USPS-LR-N2024-1-NP1.....................  LTO Model Explanation and Pilot Results...  Stephen Hagenstein.
USPS-LR-N2024-1-NP2.....................  Leg 2 Modeling Inputs, Explanation and      Stephen Hagenstein.
                                           Results.
USPS-LR-N2024-1-NP3.....................  Service Standard Changes to Competitive     Stephen Hagenstein.
                                           Products.
USPS-LR-N2024-1-NP4.....................  Competitive Products Volume with Start-the- Arslan Saleem.
                                           Clock on Saturday or Day Before Holiday.
USPS-LR-N2024-1-NP5.....................  Competitive Product Mail Volume Impact      Arslan Saleem.
                                           Analysis in Future State.
USPS-LR-N2024-1-NP6.....................  Impacts on Pharmaceutical Volume..........  Arslan Saleem.
USPS-LR-N2024-1-NP7.....................  Competitive Product Volume Impact in        Arslan Saleem.
                                           Future State.
USPS-LR-N2024-1-NP8.....................  LDC Productivity Rates and Workhours......  Gregory White.
USPS-LR-N2024-1-NP9.....................  Site-Specific Machine Productivity          Gregory White.
                                           Information.
----------------------------------------------------------------------------------------------------------------
Note: The Postal Service filed the non-public library reference under seal (shaded in the above table),
  asserting it consists of commercially sensitive business information, specifically transportation costs and
  modeling, information related to the Postal Service's competitive products, and site- and machine-specific
  processing capabilities and productivity rates for competitive products. See Notice of United States Postal
  Service of Filing of Library References and Application for Non-Public Treatment, October 4, 2024, Application
  of the United States Postal Service for Non-Public Treatment at 4-8.

IV. Initial Administrative Actions

A. General Procedures

    The procedural rules in 39 CFR part 3020 apply to Docket No. N2024-
1. Before issuing its advisory opinion, the Commission shall accord an 
opportunity for a formal, on-the-record hearing pursuant to 5 U.S.C. 
556 and 557. 39 U.S.C. 3661(c). The Commission will sit en banc for 
Docket No. N2024-1. See 39 CFR 3020.122(b). The form and manner for any 
hearings to be held in Docket No. N2024-1 shall be established by 
Commission Order or Presiding Officer Ruling at a later date.

B. Scope

    Docket No. N2024-1 is limited in scope to the specific changes 
proposed by the Postal Service in its Request. See 39 CFR 3020.102(b). 
To the extent that participants raise alternative proposals and present 
reasons why those alternatives may be superior to the

[[Page 83713]]

Postal Service's proposal, the Commission would interpret such 
discussion as critiquing the specific changes proposed by the Postal 
Service in its Request.\5\ However, the Commission would not evaluate 
or opine on the merits of such alternative proposals in its advisory 
opinion. See Order No. 2080 at 18. Pursuant to its discretion, the 
Commission may undertake evaluation of alternatives or other issues 
raised by participants in separate proceedings (such as special studies 
or public inquires). See 39 CFR 3020.102(b). Moreover, any interested 
person may petition the Commission to initiate a separate proceeding 
(such as a rulemaking or public inquiry) at any time. See 39 CFR 
3010.201(b) (initiation of notice and comment proceedings).
---------------------------------------------------------------------------

    \5\ See Docket No. RM2012-4, Order Adopting Amended Rules of 
Procedure for Nature of Service Proceedings Under 39 U.S.C. 3661, 
May 20, 2014, at 18 (Order No. 2080).
---------------------------------------------------------------------------

C. Designation of Presiding Officer

    Pursuant to 39 CFR 3010.106, the Commission appoints Stephanie A. 
Quick to serve as presiding officer in Docket No. N2024-1, effective 
immediately. Ms. Quick shall have the authority delegated to the 
presiding officer under 39 CFR 3010.106(c), except for regulating the 
course of public conferences and hearings. See 39 CFR 3010.106(c)(2). 
The Commission expands Ms. Quick's authority to allow her to propound 
formal discovery requests upon any party, at her discretion. The 
numerical limitation on interrogatories appearing in 39 CFR 3020.117(a) 
shall not apply to the presiding officer. The Commission also 
authorizes the presiding officer to rule on procedural issues such as 
motions for late acceptance and discovery-related matters such as 
motions to be excused from answering discovery requests. The presiding 
officer shall have authority to issue any ruling in this docket not 
otherwise specifically reserved to the Commission by 39 CFR 3020 and 
3010.106. Commissioner Ashley Poling shall preside over the technical 
conference and any hearings conducted as part of this proceeding. 
Commissioner Poling shall have all the authority of the presiding 
officer, including but not limited to convening, adjourning, and ruling 
on oral motions made during the hearings.

D. Procedural Schedule

    The Commission establishes a procedural schedule, which appears 
below the signature of this Order as Attachment 1. See 39 CFR 3010.151, 
3020.110; see also 39 CFR part 3020 appendix A. Generally, the 
procedural schedule for a nature of service proceeding requires that 
the advisory opinion be issued within 90 days from the date of the 
filing of the Postal Service's request. See 39 CFR 3020.110. Due to the 
breadth and complexity of the Postal Service's request, as well as the 
number of federal holidays that occur in the next 90 days, the 
Commission finds good cause to deviate from the pro forma procedural 
schedule, including extending the issuance date of the advisory opinion 
to 120 days. See 39 CFR part 3020 appendix A. These dates may be 
further changed if good cause is shown, if the Commission later 
determines that the Request is incomplete, if the Commission determines 
that the Postal Service has significantly modified the Request, or for 
other reasons as determined by the Commission. See 39 CFR 3020.110(b) 
and (c).

E. How To Access Material Filed in This Proceeding

1. Using the Commission's Website
    The public portions of the Postal Service's filing are available 
for review on the Commission's website (https://www.prc.gov). The Postal 
Service's electronic filing of the Request and prepared direct evidence 
effectively serves the persons who participated in the pre-filing 
conference. See 39 CFR 3020.104. Other material filed in this 
proceeding will be available for review on the Commission's website, 
unless the information contained therein is subject to an application 
for non-public treatment.
2. Using Methods Other Than the Commission's Website
    The Postal Service must serve hard copies of its Request and 
prepared direct evidence ``only upon those persons who have notified 
the Postal Service, in writing, during the pre-filing conference(s), 
that they do not have access to the Commission's website.'' 39 CFR 
3020.104. If you demonstrate that you are unable to effectively use the 
Commission's Filing Online system or are unable to access the internet, 
then the Secretary of the Commission will serve material filed in 
Docket No. N2024-1 upon you via First-Class Mail. See 39 CFR 
3010.127(b) and (c). You may request physical service by mailing a 
document demonstrating your need to the Office of Secretary and 
Administration, Postal Regulatory Commission, 901 New York Avenue NW, 
Suite 200, Washington, DC 20268-0001. Pursuant to 39 CFR 3010.127(c), 
the Secretary shall maintain a service list identifying no more than 
two individuals designated for physical service of documents for each 
party intervening in this proceeding. Accordingly, each party must 
ensure that its listing is accurate and should promptly notify the 
Secretary of any errors or changes. See 39 CFR 3010.127(c).
3. Non-Public Material
    The Commission's rules on how to file and access non-public 
material appear in 39 CFR part 3011. Each individual seeking non-public 
access must familiarize themselves with these provisions, including the 
rules governing eligibility for access; non-dissemination, use, and 
care of the non-public material; sanctions for violations of protective 
conditions; and how to terminate or amend access. See 39 CFR 3011.300, 
3011.302-.304. Any person seeking access to non-public material must 
file a motion with the Commission containing the information required 
by 39 CFR 3011.301(b)(1)-(4). Each motion must attach a description of 
the protective conditions and a certification to comply with protective 
conditions executed by each person or entity (and each individual 
working on behalf of the person or entity) seeking access. 39 CFR 
3011.301(b)(5)-(6). To facilitate compliance with 39 CFR 
3011.301(b)(5)-(6), a template Protective Conditions Statement and 
Certification to Comply with Protective Conditions appears below the 
signature of this Order as Attachment 2, for completion and attachment 
to a motion for access. See 39 CFR part 3011 subpart C, appendix A. 
Persons seeking access to non-public material are advised that actual 
notice provided to the Postal Service pursuant to 39 CFR 3011.301(b)(4) 
will expedite resolution of the motion, particularly if the motion for 
access is uncontested by the Postal Service.
    Non-public information must be redacted from filings submitted 
through the Commission's website; instead, non-public information must 
be filed under seal as required by 39 CFR part 3011 subpart B.

F. How To File Material in This Proceeding

1. Using the Commission's Filing Online System
    Except as provided in 39 CFR 3010.120(a),\6\ all material filed 
with the

[[Page 83714]]

Commission shall be submitted in electronic format using the Filing 
Online system, which is available over the internet through the 
Commission's website. The Commission's website accepts filings during 
the Commission's regular business hours, which are from 8:00 a.m. 
through 4:30 p.m. Eastern Time (ET), except for Saturdays, Sundays, and 
Federal holidays. A guide to using the Filing Online system, including 
how to create an account, is available at https://www.prc.gov/how-to-participate. If you have questions about how to use the Filing Online 
system, please contact the dockets clerk by email at [email protected] or 
telephone at (202) 789-6800, option 2. Please be advised that the 
dockets clerk can only answer procedural questions but may not provide 
legal advice or recommendations.
---------------------------------------------------------------------------

    \6\ The Commission's Filing Online system allows account holders 
to file materials that contain non-public information. See Postal 
Regulatory Commission eDockets User Guide, at 39, available at 
https://www.prc.gov/sites/default/files/PRC%20eFiling%20User%20Guide_06092023.pdf. The filer must adhere to 
the requirements of 39 CFR 3011 subpart B, including the requirement 
to concomitantly provide an application for non-public treatment, a 
redacted (public) version of the non-public materials, and an 
unredacted (sealed) version of the non-public materials. See 39 CFR 
3011.200(a).
---------------------------------------------------------------------------

2. Using Methods Other Than the Commission's Filing Online System
    Material may be filed using a method other than the Commission's 
website only if at least one of the following exceptions applies:
     The material cannot reasonably be converted to electronic 
format,
     The filer is unable to effectively use the Commission's 
Filing Online system and the document is 10 pages or fewer, or
     The Secretary has approved an exception to the 
requirements to use the Commission's Filing Online system based on a 
showing of good cause.

39 FR 3010.120(a).

    Material subject to these exceptions may be filed by mail to the 
Office of Secretary and Administration, Postal Regulatory Commission, 
901 New York Avenue NW, Suite 200, Washington, DC 20268-0001. The 
posting of mailed materials to the Commission's website may be delayed.

G. Technical Conference

1. Date and Purpose
    A technical conference will be held live via Microsoft Teams on 
October 16, 2024, at 1:00 p.m. ET. The technical conference is an 
informal, off-the-record opportunity to clarify technical issues as 
well as to identify and request information relevant to evaluating the 
Postal Service's proposed changes. See 39 CFR 3020.115(c). The 
technical conference will be limited to information publicly available 
in the Request. Any non-public information, including information in 
non-public library references attached to the Request, should not be 
raised at the technical conference. At the technical conference, the 
Postal Service will make available for questioning its five witnesses 
whose direct testimony was filed along with the Request and a sixth 
individual to serve as its institutional witness, who will provide 
information relevant to the Postal Service's proposal that is not 
provided by other Postal Service witnesses. See Request at 51-52; see 
also 39 CFR 3020.113(b)(6)-(7), 3020.115(b). The names and topics to 
which these six individuals are prepared to address are summarized 
above in section III.C., table 3, infra.
2. How To Livestream the Technical Conference
    The technical conference will be broadcast to the public via 
livestream, which will allow the public to view and listen to the 
technical conference, as it is occurring and after. To view and listen 
to the livestream, on or after 1 p.m. ET on October 16, 2024, an 
individual must click on the internet link that will be identified on 
the Commission's YouTube Channel, which is available at https://www.youtube.com/channel/UCbHvK-S8CJFT5yNQe4MkTiQ. Individuals do not 
have to register in advance to access the livestream. Please note that 
the livestream is a broadcast; therefore, there is a brief delay 
(several seconds) between the technical conference being captured on 
camera and being displayed to viewers of the livestream. Additionally, 
please note that clicking on the livestream link will not allow an 
individual the opportunity to question the Postal Service's six 
witnesses. Details on how to participate in the live technical 
conference event (and have the opportunity to question the Postal 
Service's six witnesses) follow.
3. How To Participate in the Technical Conference
    To participate in this live technical conference and have the 
opportunity to ask questions of the Postal Service's six witnesses, an 
individual need not formally intervene in this docket but must register 
in advance as follows. Each individual seeking to participate in the 
live technical conference via Microsoft Teams using an individual 
device (e.g., a desktop computer, laptop, tablet, or smart phone) must 
register by sending an email to [email protected], with the subject 
line ``N2024-1 Conference Registration'' by October 15, 2024. In order 
to facilitate orderly public participation, this email shall provide 
the following information:
     your first and last name;
     your email address (to receive the Microsoft Teams link);
     the name(s) of the Postal Service witness(es) you would 
like to question and/or the topic(s) of your question(s); and
     your affiliation (if you are participating in your 
capacity as an employee, officer, or member of an entity such as a 
corporation, association, or government agency).
    The [email protected] email address is established solely for 
the exchange of information relating to the logistics of registering 
for, and participating in, the technical conference.\7\ No information 
related to the substance of the Postal Service's Request shall be 
communicated, nor shall any information provided by participants apart 
from the list identified above be reviewed or considered. Only 
documents filed with the Commission's docket system will be considered 
by the Commission. Before the technical conference, the Commission will 
email each identified individual a Microsoft Teams link, an explanation 
of how to connect to the technical conference, and information 
regarding the schedule and procedures to be followed.
---------------------------------------------------------------------------

    \7\ Please refer to the Commission's privacy policy which is 
available at https://www.prc.gov/privacy.
---------------------------------------------------------------------------

4. Availability of Materials and Recording
    To facilitate discussion of the matters to be explored at the 
technical conference, the Postal Service shall, if necessary, file with 
the Commission any materials not already filed in Docket No. N2024-1 
(such as PowerPoint presentations or Excel spreadsheets) that the 
Postal Service expects to present at the technical conference by 
October 15, 2024. Doing so will foster an orderly discussion of the 
matters under consideration and facilitate the ability of individuals 
to access these materials should technical issues arise for any 
participants during the live technical conference. If feasible, the 
recording will be available on the Commission's YouTube Channel at 
https://www.youtube.com/channel/UCbHvK-S8CJFT5yNQe4MkTiQ.
    Participants in the live technical conference, by participating, 
consent to such recording and posting. Information obtained during the 
technical conference or as a result of the technical conference is not 
part of the decisional record, unless admitted under the

[[Page 83715]]

standards of 39 CFR 3010.322. See 39 CFR 3020.115(e).
    The Commission reserves the right to cancel the technical 
conference should no parties register an intent to question the Postal 
Service's six witnesses.

H. How To Intervene (Become a Party to This Proceeding)

    To become a party to this proceeding, a person or entity must file 
a notice of intervention by October 21, 2024.\8\ This filing must 
clearly and concisely state: (1) the nature and extent of the 
intervenor's interest in the issues (including the postal services 
used); (2) the intervenor's position on the proposed changes in 
services (to the extent known); (3) whether or not the intervenor 
requests a hearing; and (4) whether or not the intervenor intends to 
actively participate in the hearing. See 39 CFR 3010.142(b). Page one 
of this filing shall contain the name and full mailing address of no 
more than two persons who are to receive service, when necessary, of 
any documents relating to this proceeding. See id. A party may 
participate in discovery; file testimony and evidence; conduct written 
examination of witnesses; conduct limited oral cross-examination; file 
briefs, motions, and objections; and present argument before the 
Commission or the presiding officer. See id. sections 3010.142(a); 
3020.122(e). An opposition to a notice of intervention is due within 3 
days after the notice of intervention is filed. See id. section 
3010.142(d)(2).
---------------------------------------------------------------------------

    \8\ Neither the Public Representative nor the Postal Service 
must file a notice of intervention; both are automatically deemed 
parties to this proceeding. See 39 CFR 3010.142(a).
---------------------------------------------------------------------------

I. Discovery

1. Generally Applicable Discovery Procedures
    Discovery requests may be propounded upon filing a notice of 
intervention. Discovery that is reasonably calculated to lead to 
admissible evidence is allowed. See 39 CFR 3020.116(a). Each party must 
familiarize themselves with the Commission's rules appearing in 39 CFR 
part 3020, including the rules for discovery in N-dockets generally and 
specific to interrogatories, requests for the production of documents, 
and requests for admissions. See 39 CFR 3020.116-3020.119. No party may 
propound more than a total of 25 interrogatories (including both 
initial and follow-up interrogatories) without prior approval by the 
Commission or presiding officer.\9\
---------------------------------------------------------------------------

    \9\ See 39 CFR 3020.117(a); Order No. 2080 at 42; see also 
Docket No. N2021-1, Order Affirming Presiding Officer's Ruling No. 
N2021-1/9, May 26, 2021, at 9 (Order No. 5901).
---------------------------------------------------------------------------

    Each answer to a discovery request is due within 7 days after the 
discovery request is filed.\10\ Any motion seeking to be excused from 
answering any discovery request is due within 3 days after the 
discovery request is filed. See 39 CFR 3020.105(b)(1). Any response to 
such motion is due within 2 days after the motion is filed. See id. 
section 3020.105(b)(2). The Commission expects parties to make 
judicious use of discovery, objections, and motions practice, and 
encourages parties to make every effort to confer to resolve disputes 
informally before bringing disputes to the Commission to resolve.
---------------------------------------------------------------------------

    \10\ See 39 CFR 3020.117(b)(4), 3020.118(b)(1), 3020.119(b)(1). 
Filing an opposition to a notice of intervention shall not delay 
this deadline. See 39 CFR 3010.142(d)(3).
---------------------------------------------------------------------------

2. Discovery Deadlines for the Postal Service's Direct Case
    All discovery requests regarding the Postal Service's direct case 
must be filed by November 5, 2024. All discovery answers by the Postal 
Service must be filed by November 12, 2024. The parties are urged to 
initiate discovery promptly, rather than to defer filing requests and 
answers to the end of the period established by the Commission.

J. Rebuttal Case Deadlines

    A rebuttal case is any evidence and testimony offered to disprove 
or contradict the evidence and testimony submitted by the Postal 
Service. A rebuttal case does not include cross-examination of the 
Postal Service's witnesses or argument submitted via a brief or 
statement of position. Any party that intends to file a rebuttal case 
must file a notice confirming its intent to do so by November 27, 2024. 
Any rebuttal case, consisting of any testimony and all materials in 
support of the case, must be filed by December 4, 2024.

K. Surrebuttal Case Deadlines

    A surrebuttal case is any evidence and testimony offered to 
disprove or contradict the evidence and testimony submitted by the 
rebutting party. A surrebuttal case does not include cross-examination 
of the rebutting party's witnesses or argument submitted via a brief or 
statement of position. Any party that intends to file a surrebuttal 
case must obtain the Commission's prior approval and must bear the 
burden of demonstrating exceptional circumstances that would warrant 
granting the motion. See 39 CFR 3020.121(b). Any motion for leave to 
file a surrebuttal case is due December 6, 2024. Any response to such 
motion is due December 10, 2024. Any surrebuttal case, consisting of 
any testimony and all materials in support of the case, must be filed 
by December 13, 2024.

L. Hearing Dates

    The Commission expects that this case will require no more than 1 
or 2 business days for hearing, but reserves 3 business days out of an 
abundance of caution and consistent with the pro forma schedule set 
forth in appendix A of 39 CFR part 3020. If no party files a notice of 
intent to file a rebuttal case by November 27, 2024, then the hearing 
of the Postal Service's direct case shall begin December 4, 2024, with 
additional days reserved on December 5, 2024, and December 6, 2024.
    If any party files a notice of intent to file a rebuttal case by 
November 27, 2024, but no surrebuttal testimony will be presented, then 
the hearing of the Postal Service's direct case shall begin December 
11, 2024, with additional days reserved on December 12, 2024, and 
December 13, 2024.
    If any party files a notice of intent to file a rebuttal case by 
November 27, 2024, and the Commission approves the presentation of 
surrebuttal testimony, then the hearing of the Postal Service's direct 
case shall begin December 18, 2024, and the hearing of the surrebuttal 
case shall end December 20, 2024.

M. Presentation of Evidence and Testimony

    Evidence and testimony shall be in writing and may be accompanied 
by a trial brief or legal memoranda. 39 CFR 3020.122(e)(1). Whenever 
possible and particularly for factual or statistical evidence, written 
cross-examination will be used in lieu of oral cross-examination. Id. 
section 3020.122(e)(2).
    Oral cross-examination will be allowed to clarify written cross-
examination and/or to test assumptions, conclusions, or other opinion 
evidence. Id. section 3020.122(e)(3). Assuming that no rebuttal case is 
filed, any party that intends to conduct oral cross-examination shall 
file a notice of intent to do so by November 25, 2024. The notice must 
include an estimate of the amount of time requested for each witness.
    In lieu of submitting hard copy documents to the Commission as 
contemplated by 39 CFR 3020.122(e)(2), each party shall file a single 
document titled ``Notice of Designations'' containing a list for each 
witness that identifies the materials to be designated

[[Page 83716]]

(without the responses). The filing party shall arrange its list for 
each witness in alphabetical order by the name of the party propounding 
the interrogatory followed by numerical order of the interrogatory. For 
example:

Designations for Witness One
    ABC/USPS-T1-1
    ABC/USPS-T1-3
    DEF/USPS-T1-1
    GHI/USPS-T1-3
    JKL/USPS-T1-2

Designations for Witness Two
    DEF/USPS-T2-4
    GHI/USPS-T2-2

    Assuming that no rebuttal case is filed, each party shall file its 
Notice of Designations by November 26, 2024.
    Assuming that no rebuttal case is filed, on December 2, 2024, the 
Postal Service shall file a ``Notice of Designated Materials'' 
identifying any corrections to the testimony or designated materials 
for each witness sponsored by the Postal Service. Attached to that 
notice shall be an Adobe PDF file that contains the witness's 
designated written responses in alphabetical order by the name of the 
party propounding the interrogatory followed by numerical order of the 
interrogatory (with any corrections to the responses highlighted). The 
Postal Service shall also contemporaneously file any corrections to 
testimony (with those corrections highlighted).

N. Presentation of Argument

1. General Procedures
    Any person that has intervened in Docket No. N2024-1 (and thereby 
formally became a party to this proceeding) may submit written argument 
by filing a brief or a statement of position; they also may request to 
present oral argument at the hearing. See 39 CFR 3020.123; see also 39 
CFR 3010.142(a). Any person that has not intervened in Docket No. 
N2024-1 may submit written argument by filing a statement of position. 
See 39 CFR 3020.123(g); see also 39 CFR 3010.142(a).
2. Presentation of Written Argument
    A brief is a written document that addresses relevant legal and 
evidentiary issues for the Commission to consider and must adhere to 
the requirements of 39 CFR 3020.123(a)-(f). A statement of position is 
a less formal version of a brief that describes the filer's position on 
the Request and the information on the existing record in support of 
that position. See 39 CFR 3020.123(g).
a. Briefing Deadlines
    Assuming that no rebuttal case is filed, initial briefs are due 
December 12, 2024, and reply briefs are due December 19, 2024. If any 
party files a notice confirming its intent to file a rebuttal case by 
November 27, 2024, then the briefing schedule may be revised.
b. Deadline for Statement of Position
    Any interested person, including anyone that has not filed a notice 
of intervention and become a party to this proceeding, may file a 
statement of position. See 39 CFR 3020.123(g); see also 39 CFR 
3010.142(a). A statement of position is limited to the existing record 
and may not include any new evidentiary material. See 39 CFR 
3020.123(g). Filings styled as a brief or comments, conforming with the 
content and timing requirements, shall be deemed statements of 
positions. Any statement of position is due December 12, 2024.
3. Request To Present Oral Argument
    Oral argument has not historically been part of N-cases; the 
Commission would only grant a request to present oral argument upon an 
appropriate showing of need by the presenting party. See Order No. 2080 
at 53. Assuming that no rebuttal case is filed, any party may file a 
request to present oral argument by November 25, 2024.

O. The Commission's Advisory Opinion

    In section IV.D., the Commission stated that it found good cause to 
modify the procedural schedule such that the Commission shall issue its 
advisory opinion within 120 days of the filing of the Request. 
Therefore, absent a determination of good cause for further extension, 
the Commission shall issue its advisory opinion in this proceeding by 
January 31, 2025. ``The opinion shall be in writing and shall include a 
certification by each Commissioner agreeing with the opinion that in 
his [or her] judgment the opinion conforms to the policies established 
under [title 39, United States Code].'' 39 U.S.C. 3661(c). The advisory 
opinion shall address the specific changes proposed by the Postal 
Service in the nature of postal services. See 39 CFR 3020.102(b). The 
Commission encourages the Postal Service to consider the 
recommendations from the advisory opinion before moving forward with 
implementation.

P. Public Representative

    Pursuant to 39 U.S.C. 3661(c), Ping Gong shall continue to serve as 
an officer of the Commission (Public Representative) to represent the 
interests of the general public in this proceeding. See Order No. 7414 
at 3.

V. Ordering Paragraphs

    It is ordered:
    1. The procedural schedule for this proceeding is set forth below 
the signature of this Order.
    2. Pursuant to 39 CFR 3010.106 and 3020.122(b), the Commission 
appoints Stephanie A. Quick to serve as presiding officer in Docket No. 
N2024-1, effective immediately.
    3. Stephanie A. Quick is authorized to propound formal discovery 
requests upon any party, at her discretion. The numerical limitation on 
interrogatories appearing in 39 CFR 3020.117(a) shall not apply to the 
Presiding Officer.
    4. Stephanie A. Quick is authorized to rule on procedural issues 
such as motions for late acceptance and discovery-related matters such 
as motions to be excused from answering discovery requests.
    5. Stephanie A. Quick is authorized to make other rulings in this 
Docket not otherwise specifically reserved to the Commission according 
to 39 CFR 3020 and 3010.106.
    6. Pursuant to 39 U.S.C. 3661(c), Ping Gong shall continue to serve 
as an officer of the Commission (Public Representative) to represent 
the interests of the general public in this proceeding.
    7. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.

               Procedural Schedule for Docket No. N2024-1
            [Established by the Commission, October 8, 2024]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Technical Conference Dates:
    Deadline to Email [email protected]   October 15, 2024.
     to Register to Participate in the Live
     Technical Conference via Microsoft
     Teams.
    Filing of the Postal Service's           October 15, 2024.
     Materials (if any) for the Technical
     Conference.

[[Page 83717]]

 
    Technical Conference (live via           October 16, 2024, at 1:00
     Microsoft Teams).                        p.m. Eastern Time (ET).
Intervention Deadline:
    Filing of Notice of Intervention.......  October 21, 2024.
Discovery Deadlines for the Postal
 Service's Direct Case:
    Last Filing of Discovery Requests......  November 5, 2024.
    Filing of the Postal Service's Answers   November 12, 2024.
     to Discovery.
Deadlines in Preparation for Hearing
 (assuming no rebuttal case):
    Filing of Notice Confirming Intent to    November 25, 2024.
     Oral Conduct Cross-Examination.
    Filing of Request to Present Oral        November 25, 2024.
     Argument.
    Filing of Notice of Designations         November 26, 2024.
     (Parties).
    Filing of Notices of Designated          December 2, 2024.
     Materials (Postal Service).
Rebuttal Case Deadlines (if applicable):
    Filing of Notice Confirming Intent to    November 27, 2024.
     File a Rebuttal Case.
    Filing of Rebuttal Case................  December 4, 2024.
Surrebuttal Case Deadlines (if applicable):
    Filing of Motion for Leave to File       December 6, 2024.
     Surrebuttal Case.
    Filing of Response to Motion for Leave   December 10, 2024.
     to File Surrebuttal Case.
    Filing of Surrebuttal Case (if           December 13, 2024.
     authorized).
Hearing Dates:
    Hearings (with no Rebuttal Case).......  December 4 to 6, 2024.
    Hearings (with Rebuttal Case, but no     December 11 to 13, 2024.
     authorized Surrebuttal Case).
    Hearings (with Rebuttal Case and         December 18 to 20, 2024.
     authorized Surrebuttal Case).
Briefing Deadlines:
    Filing of Initial Briefs (with no        December 12, 2024.
     Rebuttal Case).
    Filing of Reply Briefs (with no          December 19, 2024.
     Rebuttal Case).
Statement of Position Deadline:
    Filing of Statement of Position (with    December 12, 2024.
     no Rebuttal Case).
Advisory Opinion Deadline:
    Filing of Advisory Opinion.............  January 31, 2025.
------------------------------------------------------------------------

Docket N2024-1 Template To Attach To Motion for Access to Non-Public 
Material Protective Conditions Statement

    The Postal Service requests confidential treatment of non-public 
materials identified as ___ (non-confidential description of non-public 
materials) (hereinafter ``these materials'') in Commission Docket No. 
N2024-1. ___ (name of participant filing motion) (hereinafter ``the 
movant'') requests access to these materials related to Commission 
Docket No. N2024-1 (hereinafter ``this matter'').
    The movant has provided to each person seeking access to these 
materials:
    [cir] This Protective Conditions Statement;
    [cir] The Certification to Comply with Protective Conditions;
    [cir] The Certification of Compliance with Protective Conditions 
and Termination of Access; and
    [cir] The Commission's rules applicable to access to non-public 
materials filed in Commission proceedings (subpart C of part 3011 of 
the U.S. Code of Federal Regulations).
    Each person (and any individual working on behalf of that person) 
seeking access to these materials has executed a Certification to 
Comply with Protective Conditions by signing in ink or by typing /s/ 
before his or her name in the signature block. The movant attaches the 
Protective Conditions Statement and the executed Certification(s) to 
Comply with Protective Conditions to the motion for access filed with 
the Commission.
    The movant and each person seeking access to these materials agree 
to comply with the following protective conditions:
    1. In accordance with 39 CFR 3011.303, the Commission may impose 
sanctions on any person who violates these protective conditions, the 
persons or entities on whose behalf the person was acting, or both.
    2. In accordance with 39 CFR 3011.300(b), no person involved in 
competitive decision-making for any individual or entity that might 
gain competitive advantage from using these materials shall be granted 
access to these materials. Involved in competitive decision-making 
includes consulting on marketing or advertising strategies, pricing, 
product research and development, product design, or the competitive 
structuring and composition of bids, offers or proposals. It does not 
include rendering legal advice or performing other services that are 
not directly in furtherance of activities in competition with an 
individual or entity having a proprietary interest in the protected 
material.
    3. In accordance with 39 CFR 3011.302(a), a person granted access 
to these materials may not disseminate these materials in whole or in 
part to any person not allowed access pursuant to 39 CFR 3011.300(a) 
(Commission and court personnel) or 3011.301 (other persons granted 
access by Commission order) except in compliance with:
    a. Specific Commission order,
    b. Subpart B of 39 CFR 3011 (procedure for filing these materials 
in Commission proceedings), or
    c. 39 CFR 3011.305 (production of these materials in a court or 
other administrative proceeding).
    4. In accordance with 39 CFR 3011.302(b) and (c), all persons 
granted access to these materials:
    a. Must use these materials only related to this matter; and
    b. Must protect these materials from any person not authorized to 
obtain access under 39 CFR 3011.300 or 3011.301 by using the same 
degree of care, but no less than a reasonable degree of care, to 
prevent the unauthorized disclosure of these materials as those 
persons, in the ordinary course of business, would be expected to use 
to protect their own proprietary material or trade secrets and other 
internal, confidential, commercially sensitive, and privileged 
information.
    5. The duties of each person granted access to these materials 
apply to all:

[[Page 83718]]

    a. Disclosures or duplications of these materials in writing, 
orally, electronically, or otherwise, by any means, format, or medium;
    b. Excerpts from, parts of, or the entirety of these materials;
    c. Written materials that quote or contain these materials; and
    d. Revised, amended, or supplemental versions of these materials.
    6. All copies of these materials will be clearly marked as 
``Confidential'' and bear the name of the person granted access.
    7. Immediately after access has terminated pursuant to 39 CFR 
3011.304(a)(1), each person (and any individual working on behalf of 
that person) who has obtained a copy of these materials must execute 
the Certification of Compliance with Protective Conditions and 
Termination of Access. In compliance with 39 CFR 3011.304(a)(2), the 
movant will attach the executed Certification(s) of Compliance with 
Protective Conditions and Termination of Access to the notice of 
termination of access filed with the Commission.
    8. Each person granted access to these materials consents to these 
or such other conditions as the Commission may approve.
    Respectfully submitted,

/s/
-----------------------------------------------------------------------
Attorney/Non-Attorney Representative for
(signature of representative)
(print name of representative)
(address line 1 of representative)
(address line 2 of representative)
(telephone number of representative)
(e-mail address of representative)
(choose the appropriate response)
(name of the movant)

    You may delete the instructional text to complete this form. This 
form may be filed as an attachment to the motion for access to non-
public materials under 39 CFR 3011.301(b)(5).

Certification To Comply With Protective Conditions

    The Postal Service requests confidential treatment of non-public 
materials identified as ___ (non-confidential description of non-public 
materials) (hereinafter ``these materials'') filed in Commission Docket 
No. N2024-1.
    ___ (name of participant filing motion) requests that the 
Commission grant me access to these materials to use related to Docket 
No. N2024-1 (hereinafter ``this matter''). I certify that:
    [cir] I have read and understand the Protective Conditions 
Statement and this Certification to Comply with Protective Conditions;
    [cir] I am eligible to receive access to these materials because I 
am not involved in competitive decision-making for any individual or 
entity that might gain competitive advantage from using these 
materials; and
    [cir] I will comply with all protective conditions established by 
the Commission.

/s/
-----------------------------------------------------------------------
(signature of individual receiving access)
(print name of individual receiving access)
(title of individual receiving access)
(employer of individual receiving access)
(name of the participant filing the motion)
(date)

    You may delete the instructional text to complete this form. This 
form may be filed as an attachment to the motion for access to non-
public materials under 39 CFR 3011.301(b)(6).

[FR Doc. 2024-23853 Filed 10-16-24; 8:45 am]
BILLING CODE 7710-FW-P


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