83 FR 49286 - Periodic Reporting Requirements

POSTAL REGULATORY COMMISSION

Federal Register Volume 83, Issue 190 (October 1, 2018)

Page Range		49286-49295
FR Document		2018-21249

The Commission adopts final rules revising periodic reporting requirements codified in our regulations. The final rules amend several existing sections of our regulations, and add several subsections to our regulations.

Federal Register, Volume 83 Issue 190 (Monday, October 1, 2018)

[Federal Register Volume 83, Number 190 (Monday, October 1, 2018)]
[Rules and Regulations]
[Pages 49286-49295]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-21249]

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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2018-2; Order No. 4836]

Periodic Reporting Requirements

AGENCY: Postal Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Commission adopts final rules revising periodic reporting
requirements codified in our regulations. The final rules amend several
existing sections of our regulations, and add several subsections to
our regulations.

DATES: Effective: October 31, 2018.

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

SUPPLEMENTARY INFORMATION:

Regulatory History

83 FR 33879 (Jul. 18, 2018)
83 FR 1320 (Jan. 11, 2018)

Table of Contents

I. Introduction
II. Background
III. Comments
IV. Commission Analysis
V. Changes to the Proposed Rules
VI. Ordering Paragraphs

I. Introduction

In this Order, the Commission adopts final rules revising periodic
reporting requirements codified in 39 CFR part 3050. The final rules
adopted by this Order amend existing rules by adjusting the deadlines
of certain quarterly and monthly reports, modifying the format of the
Monthly Summary Financial Report, and adding or removing certain
reporting requirements. The final rules amend several existing sections
of 39 CFR part 3050, and add several subsections to Sec. 3050.21.

II. Background

On December 27, 2017, the Postal Service requested that the
Commission initiate a rulemaking proceeding to consider revisions to
the periodic reporting requirements codified in 39 CFR part 3050.\1\ On
January 5, 2018, the Commission established this docket and invited
comments and reply comments regarding the Postal Service's proposed
revisions.\2\ The Commission received comments from the Public
Representative \3\ and the United Parcel Service, Inc. (UPS).\4\ The
Commission received reply comments from the Postal Service \5\ and the
Parcel Shippers Association (PSA).\6\
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\1\ United States Postal Service Petition for Rulemaking on
Periodic Reporting, December 27, 2017 (Petition).
\2\ Advance Notice of Proposed Rulemaking to Revise Periodic
Reporting Requirements, January 5, 2018 (Order No. 4374). The
Advance Notice of Proposed Rulemaking to Revise Periodic Reporting
Requirements was published in the Federal Register on January 11,
2018. See 83 FR 1320 (January 11, 2018).
\3\ Public Representative Comments on Advance Notice of Proposed
Rulemaking to Revise Periodic Reporting Requirements, March 7, 2018
(March 7 PR Comments).
\4\ Comments of United Parcel Service, Inc. on Advance Notice of
Proposed Rulemaking to Revise Periodic Reporting Requirements, March
7, 2018 (March 7 UPS Comments).
\5\ Reply Comments of the United States Postal Service, April 6,
2018 (Postal Service Reply Comments).
\6\ Reply Comments of the Parcel Shippers Association (PSA),
April 6, 2018.
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The Postal Service's petition contained three requests. First, the
Postal Service requested that the Commission adjust deadlines for the
quarterly Revenue, Pieces, and Weight (RPW) report; the Quarterly
Statistics Report (QSR); the quarterly Billing Determinants report; and
the monthly National Consolidated Trial Balance and Revenue and Expense
Summary (Trial Balance) report to align the deadlines with other
financial reporting deadlines. Petition at 1. The Postal Service stated
that aligning the deadlines would be more effective, as the current
rules require the reports to be submitted before key information is
available. Id. at 3-5.
Second, the Postal Service requested that the Commission change the
format of the Monthly Summary Financial Report. Id. at 6. The Postal
Service sought to revise Sec. 3050.28(b)(1), Table 1 and Table 2. For
Table 1, the Postal Service requested a change of the term ``Operating
Revenue'' to ``Revenue,'' and to remove a breakdown of types of
operating revenue. Id. at 6-8. For Table 2, the Postal Service
requested to update the product name for USPS Marketing Mail, as the
previous format used the old product name of Standard Mail. Id. at 8.
Third, the Postal Service requested that the Commission remove any
requirements deemed unnecessary to the Commission's evaluation of
compliance with title 39. Id. at 9-10.
The Commission considered the comments it received in response to
Order No. 4706 and reviewed its periodic reporting rules to determine
if updates were warranted, and as a result proposed revisions to the
rules.\7\ The revisions incorporated the Postal Service's proposal to
adjust the filing date for the RPW, QSR, Billing Determinants, and
Trial Balance reports.\8\
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\7\ Notice of Proposed Rulemaking to Revise the Periodic
Reporting Requirements, July 12, 2018 (Order No. 4706). The Notice
of Proposed Rulemaking to Revise the Periodic Reporting Requirements
was published in the Federal Register on July 18, 2018. See 83 FR
33879 (July 18, 2018).
\8\ See Order No. 4706 at 8-10, part IV.B, proposed sections
3050.25(c)-(e), 3050.28(c).
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The proposed rules also changed the format of the Monthly Summary
Financial Report. In Sec. 3050.28(b)(1), Table 1, the existing input
for ``Operating Revenue'' remains, but component inputs ``Mail and
Services Revenue'' and ``Government Appropriations'' were removed. A
new heading, ``Revenue,'' contains an input for ``Operating Revenue,''
a new input for ``Other Revenue,'' and an input for their combined
``Total Revenue.'' \9\

[[Page 49287]]

Proposed changes to Table 2 included a replacement of the current input
``Standard Mail'' to ``USPS Marketing Mail,'' and the replacement of
the ``Total All Mail'' input and its components with distinct inputs
for ``Total Volume'' and ``Total Operating Revenue.'' \10\
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\9\ Id. at 10-11, part IV.C. Although Order No. 4706 explained
this change, the proposed Table 1 inadvertently failed to reflect
the change, omitting the new ``Total Revenue'' input.
\10\ Id. at 12, proposed section 3050.28(b)(1), Table 2.
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In Order No. 4706, the Commission also explained several
modifications to the existing rules that the Commission deemed
necessary to increase the efficiency and decrease the administrative
burden, for both the Postal Service and the Commission, of the Annual
Compliance Determination (ACD) process. Id. at 13. The proposed rules
added a requirement that the Postal Service file documentation with its
Annual Compliance Report (ACR) showing that non-compensatory market
dominant negotiated service agreements (NSAs) improve the Postal
Service's net financial position or enhance the performance of mail
preparation, processing, transportation, or other functions.\11\
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\11\ Id. at 13-14, proposed Sec. 3050.21(f)(6).
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Proposed Sec. 3050.21(j) replaced the existing section requiring
the Postal Service to provide any information it believes will assist
the Commission in evaluating compliance with title 39. The Commission's
proposed rules renumbered that requirement as Sec. 3050.21(n), and
revised Sec. 3050.21(j) to require that the Postal Service provide a
distribution breakdown of mail fees for market dominant and competitive
products.\12\
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\12\ Id. at 14, proposed Sec. 3050.21(j).
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Proposed Sec. 3050.21(k) added a requirement that the Postal
Service provide in its annual filing any third-party service
performance results where a financial penalty or bonus is applied, and
to provide the amount of any forfeited revenue.\13\
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\13\ Id. at 15, proposed Sec. 3050.21(k).
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Proposed Sec. 3050.21(l) added a requirement that the Postal
Service provide all total workhour data and data sources, showing
workhour measurements by Labor Distribution Code.\14\
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\14\ Id. at 15-16, proposed Sec. 3050.21(l).
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In proposed Sec. 3050.21(m), the Commission added a requirement
that the Postal Service provide with its ACR Inbound Letter Post \15\
revenue, volume, attributable cost, and contribution data aggregated by
Universal Postal Union (UPU) country group and by shape for the
preceding five fiscal years.\16\
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\15\ ``Inbound Letter Post'' as defined in the Mail
Classification Schedule (MCS) section 1130.
\16\ Id. at 16-18, proposed Sec. 3050.21(m).
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The Commission's proposed rules also removed a requirement from
Sec. 3050.60. Id. at 19. The current Sec. 3050.60(c) requires the
Postal Service to provide hard and electronic copies of any
publications or handbooks, data collection forms, and training
handbooks whenever they are changed. The Commission, finding that
providing a hard-copy form might create unnecessary administrative
effort, proposed to remove the requirement of providing those
publications in hard-copy form.\17\
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\17\ Id. at 19, proposed Sec. 3050.60(c).
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In Order No. 4706, the Commission invited comments on the proposal
from interested parties. Id.

III. Comments

In response to Order No. 4706, the Commission received comments
from the Postal Service,\18\ UPS,\19\ the Public Representative,\20\
the U.S. Chamber of Commerce,\21\ and the National Association of
Manufacturers (NAM).\22\
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\18\ United States Postal Service Comments Regarding Order No.
4706, August 17, 2018 (Postal Service Comments).
\19\ Comments of United Parcel Service, Inc. on Notice of
Proposed Rulemaking to Revise the Periodic Reporting Requirements,
August 17, 2018 (August 17 UPS Comments).
\20\ Public Representative Comments on Notice of Proposed
Rulemaking to Revise Periodic Reporting Requirements, August 17,
2018 (August 17 PR Comments).
\21\ Comments of the U.S. Chamber of Commerce, August 17, 2018
(Chamber of Commerce Comments).
\22\ Comments of National Association of Manufacturers, August
17, 2018 (NAM Comments).
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Postal Service Comments. The Postal Service supports the proposed
rules regarding deadlines for periodic reports, the format of the
Monthly Summary Financial Report, and the removal of the requirement
that the Postal Service produce hard copies of updated publications or
handbooks.\23\
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\23\ Postal Service Comments at 3-4. The Postal Service
identifies two minor issues with proposed Sec. 3050.28(b)(1), Table
1. In Order No. 4706, the Commission indicated it would include an
input for ``Total Revenue'' but the input is not in the proposed
Table 1. Also, existing input ``Net Operating Income'' appears as
``New Operating Income'' in the proposed Table 1. The Postal Service
recommends correcting Table 1 consistent with the explanation in
Order No. 4706. Id. at 4.
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The Postal Service agrees in theory that including in the initial
ACR filing certain information it routinely provides in response to
information requests would improve efficiency. Id. at 4. The Postal
Service notes that for information regarding non-compensatory bilateral
agreements, international product third-party service performance, and
total workhour and related data by Labor Distribution Code, the Postal
Service has provided the reports as additional components of existing
ACR folders. Id. at 4-5. However, for fee distribution information
required by proposed Sec. 3050.21(j), the Postal Service notes that in
Docket Nos. ACR2015, ACR2016, and ACR2017, the format of the
information varied. Id. at 5. The Postal Service states that the format
varied due to foreseeable changes in circumstances, including new
products, new product names, price adjustments, and transfers. Id. The
Postal Service suggests that if the Commission desires to specify the
format for fee distribution report each year, the existing Chairman's
Information Request procedure would be most appropriate. Id. at 6.
Alternatively, the Postal Service suggests that under the proposed
rule, it could make a good-faith effort to make appropriate adjustments
to the report's format. Id.
The Postal Service states that the Commission should exclude
proposed Sec. 3050.21(m), requiring Inbound Letter Post revenue,
volume, attributable cost, and contribution data by UPU country group
and by shape. Id. at 7. The Postal Service contends that the rule seeks
information that is ``unrelated to the Commission's performance of its
annual compliance determination, would encourage an incomplete and
misleading analysis of the financial performance of [inbound letter
post,\24\] and create a risk of significant harm from disclosure of
commercially sensitive data.'' Id.
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\24\ The Postal Service appears to distinguish the product,
Inbound Letter Post, from a group of related products comprising
``inbound letter post.'' For clarity, this Order capitalizes the
name of the product, and does not capitalize when referring to the
Postal Service's group of related products.
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The Postal Service states that there is no justification for
separation of information by UPU country group or by shape for ACR
purposes. Id. The Postal Service states that the Commission's
observations in previous ACR dockets on Inbound Letter Post are
``inapplicable to the current and future financial performance of
Inbound Letter Post,'' and do not justify the proposed reporting
requirements. Id. at 8. The Postal Service states that the proposed
rule's 5-year reporting period is inappropriate because of the year-to-
year changes in UPU country groups, and the limited availability of
shape-based data. Id. at 9.
The Postal Service also argues that the information sought will not
present all revenue sources for inbound letter post. Id. The Postal
Service states that it receives inbound letter post revenue from a
number of other sources, including NSAs, supplemental UPU remuneration
for signature confirmation

[[Page 49288]]

and tracking, PRIME multilateral agreements, negotiated rates under
bilateral agreements, air conveyance dues, and base terminal dues. Id.
at 9-10. The Postal Service argues that proposed Sec. 3050.21(m)
relies only on the MCS section 1130 Inbound Letter Post revenue from
base terminal dues and air conveyance dues, without taking into account
these other sources of revenue for inbound letter post. Id. at 10.
The Postal Service suggests revising proposed Sec. 3050.21(m) to
include inbound revenue and costs for other MCS products including the
Inbound Registered Mail, the PRIME Expr[eacute]s Service Agreement, the
PRIME Tracked Service Agreement, the Inbound Market Dominant Multi-
Service Agreements with Foreign Postal Operators 1, and the PRIME
Registered Service Agreement. Id. at 10-11.
Finally, the Postal Service suggests that producing the Inbound
Letter Post information would put sensitive non-public material at
risk. Id. at 11-12.
UPS Comments. UPS supports the proposed modifications to reporting
deadlines, noting that the deadlines are reasonable and should relieve
the reporting burden on the Postal Service, ultimately allowing it to
provide better data. August 17 UPS Comments at 2.
Regarding changes to the Monthly Summary Financial Report, UPS
urges the Commission to require the Postal Service to produce two
versions of the affected tables for the next 12 months (alternatively 6
months if 12 months were found burdensome). Id. at 4. UPS requests that
the Commission confirm that the only permitted departures from the
current de facto reporting format of Table 2 are those described in
Order No. 4607. Id. at 5. UPS states that any future changes to the
reporting format should include a reproduction of past monthly reports
using new definitions, or the production of both new and old versions
of the reports for a period. Id.
UPS supports all of the additional requirements in the proposed
rules. Id. at 5-8. UPS asks the Commission to clarify that the Postal
Service should report Inbound Letter Post information according to
proposed Sec. 3050.21(m) in a public filing or library reference. Id.
at 8. UPS renews its request for the Commission to consider requiring
segment-level reporting for competitive products in order to promote
transparency. Id.
Public Representative Comments. The Public Representative supports
the proposed changes to reporting deadlines, and does not object to
changes to the format of the Monthly Summary Financial Report.\25\ She
notes, as the Postal Service does, that the input for ``Total Revenue''
mentioned in Order No. 4706 is not in the proposed regulatory text.
August 17 PR Comments at 4. She also notes that the proposed regulatory
text replaces the input ``Other Expenses'' with ``Other Services''
without explanation. Id.
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\25\ August 17 PR Comments at 1-2; March 7 PR Comments at 5, 6
(incorporating prior comments).
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Regarding proposed Sec. 3050.21(f)(6), and (j) through (m), the
Public Representative supports the Commission's efforts to improve and
streamline ACR dockets by requiring certain reports be included in an
initial filing. See id. at 1. However, she suggests that the Commission
can improve the proposed rules by using clearer, consistent, and
precise terminology. Id. She provides line-by-line revisions with
suggested terminology and minor reorganization. Id. at 5-6; Attachment
A.
The Public Representative proposes that because both proposed Sec.
3050.21(j) and (k) apply to ``all market dominant and competitive
products,'' both requirements are better nested as subparagraphs, below
a paragraph stating that both requirements apply to all market dominant
and competitive products. Id. at 2-3 (emphasis in original). She notes,
for example, that the proposed rules unnecessarily include the phrase
``including all negotiated service agreements'' for proposed paragraph
(k) of this section, but not for proposed paragraph (j) of this
section, despite both requirements being applicable to NSAs. Id. at 2.
The Public Representative also recommends clarifying proposed Sec.
3050.21(m), which requires Inbound Letter Post data for ``the preceding
five fiscal years.'' Id. at 3. She notes that, as written, the rule
appears to require data for the five years preceding the year of the
ACR filing, without including the year of the filing. Id. at 3-4
(emphasis added). She also states that the proposed rule was unclear as
to whether the rule requires the Postal Service to provide data for
each of the five years, or the five years in aggregate. Id. at 4.
Therefore, she suggests changing the language of the rule to require
data ``for the fiscal year subject to review and each of the preceding
four fiscal years.'' Id. at 4, 6.
The Public Representative includes a list of line-by-line revisions
to the proposed rules, and a redlined version of the regulatory text.
Id. at 5-6; Attachment A.
U.S. Chamber of Commerce Comments. The U.S. Chamber of Commerce
supports requiring the reporting of Inbound Letter Post data. The
Chamber of Commerce suggests that the Postal Service should provide
public data ``so long as delivery rates for inbound letter post are
established by intergovernmental agreement and not equally available to
domestic mailers and private international carriers.'' Chamber of
Commerce Comments.
National Association of Manufacturers Comments. NAM supports
requiring data on Inbound Letter Post, stating that such data would
``allow the Commission to draw meaningful inferences from trends in
global postal traffic and to spot the nature and severity of problems
with regard to net-losses incurred by the [Postal Service].'' NAM
Comments at 1. NAM suggests that the UPU terminal dues system is
``prime for abuse.'' Id. NAM states that there is a compelling public
interest in requiring the data and that the burden on the Postal
Service is ``non-existent.'' Id. NAM suggests that the Commission
require the Postal Service to ``disclose more granular and useful data
over time.'' Id. at 1-2.

IV. Commission Analysis

A. Deadlines for Certain Periodic Reports

No commenter objects to the proposed deadlines for the filing of
quarterly RPW, QSR, and Billing Determinants reports. Neither does any
commenter object to the proposed deadlines for the Monthly Summary
Financial Report or the Trial Balance.
Accordingly, the Commission makes no changes to the deadlines set
forth at proposed Sec. Sec. 3050.25(c)-(e), and 3050.28(b), (c). The
Commission adopts those rules as set forth in Order No. 4706.

B. Format of Monthly Summary Financial Report

The proposed revisions to the Monthly Summary Financial Report
utilize a definition of ``operating revenue'' that is consistent with
the definition used for Form 10-K reporting.\26\
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\26\ United States Postal Service, 2017 Report on Form 10-K,
November 14, 2017, at 19.
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While no commenter objects to the format changes as proposed, UPS
requests that the Commission require the Postal Service to either: (1)
Reproduce figures in past monthly reports using the new proposed
definitions; or (2) produce monthly reports using both the old and new
versions of the affected tables. August 17 UPS Comments at 3-4. UPS
states that without a device enabling direct

[[Page 49289]]

comparison of reports completed under the old format to reports
completed under the new format, ``it will be difficult for the
Commission and interested parties to compare certain data across
different time periods.'' Id. at 4. UPS argues that there is
``negligible burden on the Postal Service'' in producing the comparable
data, and that in the interest of transparency the Commission should
require its production for 12 months. Id. Alternatively, to the extent
that the Commission finds such production to be too burdensome, UPS
suggests that the Commission require production of both versions for
only six months. Id.
In its reply comments, the Postal Service avers that requiring
parallel reporting of the Monthly Summary Financial Report, ``would be
unwarranted given the modest nature of the proposed changes.'' Postal
Service Reply Comments at 5. The Postal Service also noted that the
Public Representative identified alternative sources of the data in the
removed sub-inputs.\27\ UPS states that although ``Government
Appropriation'' data are available, it is unclear whether the
corresponding ``Mail and Service Revenue'' data are available from
other sources. August 17 UPS Comments at 4.
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\27\ See id. at 1-4; March 7 PR Comments at 6-7.
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The Commission finds that the revised format, as proposed, will
improve the quality, accuracy, and completeness of the Postal Service
data pursuant to 39 U.S.C. 3652(e)(2). While the Commission recognizes
the minimal burden on the Postal Service in producing duplicate tables
under the current format and under the new format, it also finds that
the proposal represents only a modest format change, and that the
itemized data remain available. The ``Government Appropriations'' data,
which refers to amounts incurred in providing free and reduced rate
mail, are available in the Monthly Trial Balance. The former ``Mail
Services Revenue'' line input represents the remainder of the new line
input ``Operating Revenue'' on Table 1 and ``Total Operating Revenue''
on Table 2, and is now included in ``Operating Revenue'' combined with
the ``Government Appropriations'' amount. The Commission declines to
order that the Postal Service provide the Tables of the Monthly Summary
Financial Report in both formats as the change itself is minor, and the
data are available by other means.
Both the Postal Service and the Public Representative note that the
Commission's proposed rules do not precisely match the explanations set
forth in Order No. 4706. Postal Service Comments at 3-4; August 17 PR
Comments at 4-5. Both the Postal Service and Public Representative note
the omission of the line input for ``Total Revenue'' in proposed Sec.
3050.28(b)(1), Table 1. Id.; August 17 PR Comments at 4-6.
The Public Representative also notes that the proposed Table 1 also
replaces the existing line input for ``Other Expenses'' with ``Other
Services.'' August 17 PR Comments at 4. She also notes a duplicative
heading row in proposed Table 1, and an underlined heading, ``Total
Volume'' in proposed Table 2. Id. at 6.
The Postal Service notes that the line input for ``Net Operating
Income'' in existing Table 1 appears to have changed to ``New Operating
Income.'' Postal Service Comments at 4. The Postal Service suggests
that the Commission correct the change. Id.
The Commission acknowledges the errors identified by the Postal
Service and the Public Representative, and makes appropriate
corrections in the final rules.

C. Additional Requirements--Proposed Sec. 3050.21(f)(6), (j)-(m)

1. Public Representative's Clarification Recommendations
The Public Representative identifies that proposed Sec. 3050.21(j)
and (k) both apply to all market dominant products. August 17 PR
Comments at 2-3. She proposes revising paragraph (j) of this section to
include both requirements set forth in proposed paragraphs (j) and (k)
of this section, with the requirements--the distribution breakdown of
fee revenues and third-party performance results and forfeited
revenue--as subparagraphs (1) and (2). Id.
The Public Representative suggests revising the requirement in
proposed Sec. 3050.21(j) of ``a distribution breakdown of mail fees''
with ``a distribution breakdown of fee revenues'' stating that her
suggestion is more precise and inclusive of non-mail products. Id. at
3.
The Public Representative suggests a number of other changes,
including those reflecting her proposed renumbering. Id. at 5-6. She
suggests hyphenating the word ``non-compensatory'' in paragraph (f)(6)
of this section. Id. at 5. She suggests revising the 5-year reporting
requirement in paragraph (m) of this section, replacing ``the preceding
five fiscal years'' with ``for the fiscal year subject to review and
each of the preceding four fiscal years.'' Id. at 6.
The Commission acknowledges that the Public Representative's
suggested revisions are a more concise and effective alternative to
achieving the intent of the proposed rules. The Commission finds that
adopting the minor changes creates more precise requirements and will
improve the quality, accuracy, and completeness of the Postal Service's
reporting. Accordingly, the Commission adopts the Public
Representative's suggested reorganization and rewording in its final
rules.
2. Comments Regarding Proposed Sec. 3050.21(m)
The U.S. Chamber of Commerce, NAM, and UPS, each support proposed
Sec. 3050.21(m), requiring the Postal Service to provide Inbound
Letter Post revenue, volume, attributable cost, and contribution data
by UPU country group and shape.\28\ Those commenters note the
importance of transparency and public access to Inbound Letter Post
data, and identify particular public interest in the Inbound Letter
Post product.
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\28\ Chamber of Commerce Comments; NAM Comments at 1-2; August
17 UPS Comments at 8.
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The Postal Service opposes the proposed reporting requirement,
arguing that information sought: (1) Is unrelated to the Commission's
performance of its annual compliance determination; (2) would encourage
incomplete and misleading analysis of Inbound Letter Post performance;
and (3) would create a risk of harm from disclosure of commercially
sensitive data of third parties. Postal Service Comments at 7. For the
reasons set forth below, the Commission declines to make any additional
modifications to proposed Sec. 3050.21(m).
a. The Requirement Is Related to the Commission's ACD
The Postal Service suggests that the Commission's conclusions on
the Inbound Letter Post product are ``inapplicable to the current and
future performance'' of the product. Id. at 8. The Postal Service also
states that those conclusions provide no justification for the
disaggregation of Inbound Letter Post data by UPU country group and
shape. Id.
As noted in Order No. 4706, it is not uncommon for the Commission
to seek enhanced information about products of particular concern. For
example, in the FY 2017 ACD report, the Commission chose to analyze
Periodicals volume, revenue, attributable cost, and contribution, as
well as unit revenue, unit attributable cost, and unit

[[Page 49290]]

contribution for fiscal years 2007 through 2017.\29\ The Commission,
noting a year-after-year trend for the Periodicals class, requested
this enhanced disaggregated data in order to address ongoing issues
with the class. The past performance of the Periodicals class, while
not directly at issue in the ACD, showed a trend of insufficient
Periodicals revenues to cover attributable costs.
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\29\ Order No. 4706 at 17; Docket No. ACR2017, Annual Compliance
Determination Report, Fiscal Year 2017, March 29, 2018, at 44-45 (FY
2017 ACD).
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When the Commission determines the noncompliance of a product,
pursuant to 39 U.S.C. 3653(c), it must order that the Postal Service
``take such action as the Commission considers appropriate in order to
achieve compliance.'' 39 U.S.C. 3662(c). Conducting a trend analysis,
as done for the Periodicals class during the FY 2017 annual compliance
review, best allows the Commission to determine the appropriate
remedial actions. Past performance of the product, particularly where
it shows a trend of continued failure to cover its attributable costs,
is relevant when determining the appropriate corrective action in an
ACD.
As noted in Order No. 4706, there is a well-documented history of
concern about Inbound Letter Post's ongoing negative contribution, both
in Commission orders and in stakeholder comments.\30\ Additionally, a
recent Presidential Memorandum directed the executive branch to seek
reforms within the UPU's terminal dues system that provides: (1) Fair
and nondiscriminatory terminal dues that promote unrestricted and
undistorted competition; (2) terminal dues that cover the costs of
delivering Inbound Letter Post mailpieces; (3) and terminal dues that
avoid favoring foreign mailers over domestic mailers or favoring postal
operators over private sector entities.\31\ This Presidential
Memorandum highlights the Administration's focus on the Inbound Letter
Post product. Accordingly, the Commission finds that providing enhanced
data for the purposes of conducting a trend analysis across a period of
years is appropriate, particularly where the prices for a product or
products have routinely been non-compensatory.
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\30\ Order No. 4706 at 18 n.35. See Docket No. IM2016-1,
Congressional Letter to Secretary of State Rex Tillerson and
Postmaster General Megan Brennan, November 8, 2017; Docket No.
ACR2017, Comments of James Smaldone, Founder & CEO, Mighty Mug,
Inc., January 25, 2018, at 1-2; Docket No. ACR2017, Comments of
National Association of Manufacturers on Order No. 4377, January 24,
2018, at 2; Docket No. ACR2017, Comments of United Parcel Service,
Inc. in Response to Notice of Preliminary Determination to Unseal
the Material Filed in Response to Chairman's Information Request No.
1, Question 1, January 24, 2018, at 2-3; Docket No. ACR2017,
Comments of the Honorable Kenny Marchant on Determination to Unseal
the Material Filed in Response to Chairman's Information Request No.
1, Question 1, January 25, 2018, at 1-2; Docket No. ACR2017,
Comments of U.S. Chamber of Commerce, January 25, 2018, at 1-2;
Docket No. ACR2017, Comments of SBE Council Related to Inbound
Letter Post, February 20, 2018, at 1-2; Docket No. ACR2017, Comments
of United Parcel Service, Inc. in Response to Notice of Preliminary
Determination to Unseal the Postal Service's Response to Chairman's
Information Request No. 15, February 23, 2018, at 3-4; Docket No.
ACR2017, Reply Comments of United Parcel Service, Inc. on United
States Postal Service Motion for Reconsideration of Order No. 4551,
April 13, 2018, at 4; Docket No. ACR2017, Comments of U.S. Chamber
of Commerce, April 13, 2018, at 1; Docket No. IM2018-1, Comments
Received from U.S. Representatives Kenny Marchant and Ralph Abraham,
July 3, 2018, at 1; Docket No. IM2018-1, Comment Received from U.S.
Senator Bill Cassidy, M.D., July 3, 2018, at 1.
\31\ See Presidential Memorandum for the Secretary of State,
Secretary of the Treasury, Secretary of Homeland Security,
Postmaster General, and Chairman of the Postal Regulatory
Commission, August 23, 2018, available at: https://www.whitehouse.gov/presidential-actions/presidential-memorandum-secretary-state-secretary-treasury-secretary-homeland-security-postmaster-general-chairman-postal-regulatory-commission/.
---------------------------------------------------------------------------

The Postal Service notes that a new terminal dues system that
charges higher prices for bulky letters and small packets than for
letters and flats may improve the Inbound Letter Post product's
financial performance. Postal Service Comments at 8. The Postal Service
avers that the past performance of Inbound Letter Post under the former
terminal dues rate structure is not relevant to the Commission ACD
dockets under a new rate structure. Id. at 7-8.
The revenue, volume, attributable cost, and contribution data--even
for past years under a different terminal dues rate structure--are of
significant value in the Commission's ACD. The Commission's analysis of
these data assists in identifying the cause or causes of the product's
negative contribution. If for example, under the new rate structure,
the product continues to display similar trends, the Commission might
identify problems with the product unrelated to price structure. Price
structure is not singularly determinative of a product's financial
performance. Other factors might contribute to the product's
performance. For example, in its trend analysis on the Periodicals
class, the Commission identified declining productivity of mail
processing operations as a reason for the negative trend. See FY 2017
ACD at 50. The data required by proposed Sec. 3050.21(m) will assist
the Commission's efforts to identify the challenges facing the product,
and to make appropriate recommendations.
The new rate structure has separate rates for letters/flats and
bulky letters/small packets, which vary by UPU country group.\32\ The
Commission's ability to identify which rates account for what portion
of the product's contribution is critical to assessing how to improve
overall product cost coverage. To the extent that a new price structure
does improve Inbound Letter Post performance, such improvement will be
reflected in the data reporting, and more easily attributed to the
changes in price structure, due to the fuller picture provided by the
enhanced reporting.
---------------------------------------------------------------------------

\32\ See Universal Postal Union, Decisions of the 2016 Istanbul
Conference, Universal Postal Convention, Final Protocol, Section
VII, Article 29, October 6, 2016.
---------------------------------------------------------------------------

Given the public interest and the Commission's recurring findings
that Inbound Letter Post revenue fails to cover the product's costs,
the Commission finds that it is necessary and appropriate to require
reporting at this additional level of aggregation. The Postal Service's
current reporting format does not disaggregate by shape and UPU country
group so it is difficult to determine what particular aspect or aspects
of the terminal dues system are responsible for most of the negative
contribution. Providing this disaggregated information will aid the
Commission in determining the appropriate remedial action to prescribe.
Furthermore, the legislative history underlying the Postal
Accountability and Enhancement Act (PAEA) indicates that enhanced
transparency was a key motivation in the enactment of the PAEA.\33\ The
Commission, consistent with this goal, aims to be transparent in its
issuance of regulatory decisions and encourages public participation in
its dockets.\34\ In fact, the PAEA requires the Commission to consider
whether the public has access to ``timely, adequate information'' when
prescribing the content and form of the ACR. 39 U.S.C. 3652(e)(1)(A).
The additional Inbound Letter Post data required under proposed Sec.
3050.21(m) will not only improve the completeness of information
available to the

[[Page 49291]]

Commission for its determination, but will also enhance public
participation by presenting more comprehensive and understandable data
for a product of substantial public interest.
---------------------------------------------------------------------------

\33\ Public Law 109-435, 120 Stat. 3198 (2006). Both the
committee report accompanying S. 2468, the Senate's 2004 postal
reform bill, and the committee report accompanying H.R. 22, the
House of Representatives' 2005 postal reform bill, noted that
enhanced transparency and accountability were essential aspects of
postal reform. S. Rep. No. 108-318 at 5 (2004), H.R. Rep. No. 109-
66, pt. 1 at 43 (2005).
\34\ See Postal Regulatory Commission, Guiding Principles,
Openness, available at: www.prc.gov/mission.
---------------------------------------------------------------------------

The Postal Service also states that the proposed rule's 5-year
reporting period is inappropriate because of the year-to-year changes
in the composition of UPU country groups, and that data limitations may
reduce the Postal Service's ability to produce shape-based data for
previous years. Postal Service Comments at 9.
The Commission acknowledges that changes to the composition of UPU
country groups create year-to-year comparison challenges. However, the
Commission has experience in analyzing changes within and among
products. For example, the Commission has been able to account for
previous changes to the composition of UPU country groups in previous
ACDs.\35\ Thus, the Commission is prepared to address these challenges.
To the extent that the Postal Service lacks a full 5-year accounting of
shape-based data, the Commission notes that the Postal Service is able
to request the exclusion or partial exclusion of that component of the
reporting requirement until such time that shape-based data becomes
available for an entire 5-year period. See 39 CFR 3055.3(a).
---------------------------------------------------------------------------

\35\ See Docket No. ACR2016, Annual Compliance Determination
Report, Fiscal Year 2016, March 28, 2017, at 63-64.
---------------------------------------------------------------------------

b. The Requirement Does Not Encourage Incomplete or Misleading Analysis
of Inbound Letter Post Performance
The Postal Service states that proposed Sec. 3050.21(m), if
implemented, will ``encourage the use of data that support an
incomplete and inaccurate evaluation of the financial performance of
inbound letter post.'' Postal Service Comments at 9. The Postal
Service's concern is that because proposed Sec. 3050.21(m) requires
reporting on the Inbound Letter Post product \36\ it will not reflect
the financial performance of other products the Postal Service
classifies as ``inbound letter post.'' \37\ The Postal Service suggests
that for an accurate assessment of the financial performance of
``inbound letter post,'' the Commission should consider volume and
supplemental revenue derived from those other products. The Postal
Service proposes an alternative reporting requirement for inbound
revenues and costs for MCS sections 1130, 1510.2, and 1602. Postal
Service Comments at 10-11. Notably, the Postal Service's proposal does
not require that the Postal Service report the alternative data by UPU
country group and shape. See id.
---------------------------------------------------------------------------

\36\ MCS section 1130.
\37\ The Postal Service identifies these products as MCS
sections 1510.2.2 (International Ancillary Services, Inbound
International Registered Mail), 1602.5 (Negotiated Service
Agreements, International, Inbound Market Dominant Registered
Service Agreement 1), 1602.4 (Negotiated Service Agreements,
International, Inbound Market Dominant Expr[eacute]s Service
Agreement 1), 1602.6 (Negotiated Service Agreements, International,
Inbound Market Dominant PRIME Tracked Service Agreement, 1602.3
(Negotiated Service Agreements, International, Inbound Market
Dominant Multi-Service Agreements with Foreign Postal Operators 1),
July 15, 2018. Postal Service Comments at 10-11.
---------------------------------------------------------------------------

The Commission finds the Postal Service's concerns about misleading
data unpersuasive. The Postal Service made a similar argument during
the FY 2017 ACD proceeding.\38\ In Docket No. ACR2017, the Postal
Service asserted that the analysis for the Inbound Letter Post product
should include analysis of ``the volume and revenue for supplemental
UPU remuneration for signature confirmation and tracking on registered
items as well as for bilateral market dominant NSAs and the PRIME
multilateral market dominant NSAs.'' FY 2017 ACD at 66. The Postal
Service stated that the Public Representative's analysis of the Inbound
Letter Post product was incomplete because it was limited to the volume
and revenue for the Inbound Letter Post product. Id. In the FY 2017 ACD
report, the Commission rejected the Postal Service's suggested analysis
and stated that ``[t]he Commission has consistently evaluated
compliance at the product level because products, by definition,
reflect distinct cost or market characteristics to which a rate or
rates are applied.'' Id. at 67.
---------------------------------------------------------------------------

\38\ See Docket No. ACR2017, Reply Comments of the United States
Postal Service on Inbound Letter Post, February 27, 2018.
---------------------------------------------------------------------------

In each ACD, the Commission reviews each product, including those
identified by the Postal Service as ``inbound letter post,'' for cost
coverage and compliance. For example, in FY 2017, the Commission found
that ``International Ancillary Services did not cover its attributable
cost due to the failure of International Registered Mail to cover its
attributable cost.'' Id. at 71. The Commission also reviewed Market
Dominant NSA products, finding that Inbound Market Dominant Multi-
Service Agreements with Foreign Postal Operators 1, Inbound Market
Dominant Expr[eacute]s Service Agreement 1, and Inbound Market Dominant
Registered Service Agreement 1 products satisfied 39 U.S.C.
3622(c)(10), while Inbound Market Dominant PRIME Tracked Service
Agreement product did not. Id. at 74.
The Commission fulfills its mandate to determine whether the rates
or fees in effect comply with 39 U.S.C. 3622 at the product level. 39
U.S.C. 3653(b)(1). The Postal Service provides no compelling basis for
the Commission to depart from the reasonable practice of evaluating
compliance for each market dominant international mail product at the
product level. The other products the Postal Service classifies as
``inbound letter post'' are in fact distinct products from the Inbound
Letter Post product, and the performances of those products speak for
themselves. The Commission reviews those products for compliance
transparently in its ACD. Because the Commission makes a determination
of compliance for each of those products individually, increased
granularity will not give rise to a misleading representation of
Inbound Letter Post performance. In contrast, the Postal Service's
suggestion would mask the data by aggregating it with other products'
data, which would be less transparent and potentially misleading.
Accordingly, the Commission declines to remove the proposed reporting
requirement for the Inbound Letter Post product on the basis that the
additional data will be incomplete or misleading.
c. The Potential Risk of Commercial Harm Resulting From Disclosing
Commercially Sensitive Data of Third Parties is Outside the Scope of
This Rulemaking Proceeding
The Postal Service states that requiring reporting of additional
data by UPU country group and shape would put commercially sensitive
third-party information at risk of disclosure.\39\ The Postal Service
acknowledges it would file the Inbound Letter Post data required under
proposed Sec. 3050.21(m) under seal, but suggests that a non-public
filing would likely be challenged. Id.
---------------------------------------------------------------------------

\39\ Postal Service Comments at 11-12. The Postal Service
incorporates by reference its discussion in Docket No. ACR2017. See
Docket No. ACR2017, United States Postal Service Motion for
Reconsideration of Order No. 4451, April 6, 2018; Docket No.
ACR2017, Response of the United States Postal Service to Order No.
4409, February 23, 2018; Docket No. ACR2017, United States Postal
Service Notice of Filing Nonpublic Folder USPS-FY17-NP40 and
Application for Nonpublic Treatment, February 14, 2018.
---------------------------------------------------------------------------

The Postal Service acknowledges that the PAEA and the Commission
rules outline a procedure for application for non-public treatment of
information. See id. To the extent that the Postal Service believes
that public disclosure of Inbound Letter Post data separated by UPU
country group and shape would

[[Page 49292]]

cause a commercial harm, it could file an application for non-public
treatment pursuant to Sec. Sec. 3007.200 and 3007.201 of this chapter.
As noted in Order No. 4707, the application must particularly identify
``the nature and extent of the harm alleged and the likelihood of each
harm.'' \40\ The Commission's regulations also outlines a procedure for
participants or the Commission to seek to unseal material filed non-
publicly by the Postal Service. See 39 CFR 3007.103; see also 39 CFR
3007.104. Accordingly, the Commission will address the non-public
status of data filed under proposed Sec. 3050.21(m), if and when the
Postal Service files the data under seal and if the Commission issues a
preliminary determination concerning the appropriate degree of
protection, if any, to be accorded to materials filed under seal.
---------------------------------------------------------------------------

\40\ Docket No. ACR2017, Order Denying Motion for
Reconsideration of Order No. 4451 as Moot, July 12, 2018, at 15
(Order No. 4707); see 39 CFR 3007.201(b)(4).
---------------------------------------------------------------------------

The Commission finds that rules regarding non-public treatment of
commercially sensitive information are sufficient in addressing the
Postal Service's concerns. The Postal Service's assertion that a
challenge to a non-public disclosure would put the information ``at
risk'' is not itself enough reason to support removing the proposed
reporting requirement altogether. Accordingly, the Commission declines
to remove proposed Sec. 3050.21(m) on the basis of hypothetical risk
to commercially sensitive information.
3. Concerns Regarding Proposed Sec. 3050.21(j)
The Postal Service states that it agrees, in theory, that including
material routinely requested in ACR proceedings in the initial filing
is likely to be more efficient. Postal Service Comments at 4. The
Postal Service notes, however, that for fee distribution data, the
Commission's requests have sought the information in different formats
in each of the past three years. Id. at 5. The Postal Service correctly
attributes these format changes to continuing adjustments to products
lists. Id. The Postal Service, anticipating that those adjustments will
continue going forward, offers two suggestions for determining the
format of fee distribution data. Id. at 6.
The Postal Service suggests that the Commission might determine
that it is most efficient to continue the current practice of using an
information request specifying the format for the fee distribution
data. Id. Such a determination would obviate the need to adopt proposed
Sec. 3050.21(j) as a final rule. The Postal Service suggests that
alternatively, the Commission could allow the Postal Service to make
reasonable updates to the format of the report each year, pursuant to
the anticipated product adjustments. Id.
The Commission is satisfied with the Postal Service's proposal to
make efforts to make appropriate changes to the format of fee
distribution data based on product adjustments. In its annual
submission, the Postal Service should identify any such product
adjustments and corresponding format changes.

D. Removal of Unnecessary Requirement in Sec. 3050.60(c)

No commenter objects to the removal of the requirement that the
Postal Service provide hard-copy updates of publications and handbooks.
The Postal Service supports the modification. Id. at 3. Accordingly,
the Commission does not make any changes to proposed Sec. 3050.60(c).

E. Other Comments--Segment-Level Data

UPS requests that the Commission reconsider its position on a
proposal to require segment-level reporting for competitive products.
August 17 UPS Comments at 8. In Order No. 4706, the Commission
explained that it declined to propose such requirements, because the
current single segment reporting is adequate for determining
compliance. Order No. 4706 at 12-13. The PAEA allows the Commission to
consider the adequacy of information provided in determining the
lawfulness of rates charged, and can revise the reporting requirements
to ``improve the quality, accuracy, or completeness of Postal Service
data.'' 39 U.S.C. 3652(e)(2). UPS states that requiring segment-level
reporting ``would promote transparency and represent an improvement
over the status quo.'' August 17 UPS Comments at 8.
The Commission finds that UPS has not shown that the current
single-level reporting practices are inaccurate or inadequate. UPS must
show that the data, ``ha[ve] become significantly inaccurate or can be
significantly improved.'' 39 U.S.C. 3652(e)(2)(A) (emphasis added). The
proposal for segment-level reporting may be appropriate for review in
another docket devoted toward the question. In the instant docket,
however, UPS has not demonstrated the inadequacy in the current
reporting method or how it would be significantly improved for
determining compliance. In fact, the Commission finds that the current
single-level reporting is sufficiently accurate and adequate for the
purposes of assessing compliance. Accordingly, the Commission declines
to adopt rules requiring segment-level reporting for competitive
products.

V. Changes to the Proposed Rules

The final rules incorporate many of the commenters' suggestions.
The final rules contain the correction of some omissions from the
proposed rules, adjust the language of proposed rules, and restructure
and renumber proposed rules. The substance of the rules initially
proposed in Order No. 4706 largely remains the same. Below, the
Commission describes the differences between the proposed and final
rules.

A. Section 3050.21

Proposed Sec. 3050.21(f)(6) is revised to hyphenate the word
``non-compensatory'' pursuant to the suggestion of the Public
Representative. Also, because of the addition of paragraph (f)(6) of
this section, the word ``and'' at the end of paragraph (f)(4) of this
section is moved to the end of paragraph (f)(5) of this section. The
Commission adopts this revision pursuant to the Public Representative's
suggestion.
Proposed Sec. 3050.21(j) and (k) are revised as paragraphs (j)(1)
and (j)(2) of this section. Paragraph (j) of this section now reads
``For all market dominant and competitive products.'' Proposed
paragraph (j) of this section, now located at paragraph (j)(1) of this
section, required the distribution breakdown of mail fees. The final
rule replaces ``mail fees'' with ``fee revenues'' to more accurately
reflect that the requirement applies to some non-mail products.
Proposed paragraph (k) of this section, now located at paragraph (j)(2)
of this section required the Postal Service to ``provide . . . the
amount of any forfeited revenue.'' Final Sec. 3050.21(j)(2) revises
the proposed rule, now requiring that the Postal Service ``identify''
the amount of forfeited revenue.
Because the final rules combine proposed paragraphs (j) and (k) of
this section, the final rules require a minor restructuring and
renumbering. Proposed paragraphs (l) through (n) of this section are
revised and renumbered as paragraphs (k) through (m) of this section,
respectively.
The Commission also revises proposed Sec. 3050.21(m), renumbered
to Sec. 3050.21(l) in the final rules, pursuant to the Public
Representative's suggestion. The proposed rule required Inbound Letter
Post Date ``for the preceding five fiscal years.'' Final

[[Page 49293]]

Sec. 3050.21(l) more precisely defines this requirement as ``the
fiscal year subject to review and each of the preceding four fiscal
years.''
Because of the renumbering, the Commission also adopts a revision
to proposed Sec. 3050.21(a), listing the required content of the
Postal Service's section 3652 report. The proposed rule states that the
report shall provide the items listed in paragraphs (b) through (n) of
this section. Consistent with the renumbering, the final rule states
that the report shall provide the items listed in paragraphs (b)
through (m) of this section.
The Commission also revises the amendatory instructions for the
Federal Register, consistent with the revisions made to Sec. 3050.21.

B. Section 3050.25

The Commission does not revise Sec. 3050.25 as proposed in Order
No. 4706.

C. Section 3050.28

In consideration of the comments of the Postal Service and the
Public Representative, the Commission makes several revision to
proposed Sec. 3050.28(b)(1), Table 1 and Table 2.
The final rules add the input ``Total Revenue'' beneath the sub-
inputs for ``Operating Revenue'' and ``Other Revenue'' and above
``Operating Expenses'' in Table 1. This revision is consistent with the
explanation of changes in Order No. 4706. Pursuant to the Postal
Service's suggestion, the Commission revises the input ``New Operating
Income'' in proposed Table 1. The final rules correct the input to
``Net Operating Income.'' The final rules also remove a duplicative
heading row in Table 1 and extraneous underlining within certain cells
in Table 2.
The Commission, pursuant to the Public Representative's suggestion,
revises the amendatory instructions preceding final Sec. 3050.28, to
indicate that the introductory language in paragraph (b) of this
section also contains revisions. The content of the introductory text
of paragraph (b) of this section remains unchanged from that proposed
in Order No. 4706.

D. Section 3050.60(c)

The Commission does not revise Sec. 3050.50(c) as proposed in
Order No. 4706.

VI. Ordering Paragraphs

It is ordered:
1. Part 3050 of title 39, Code of Federal Regulations, is revised
as set forth below the signature of this Order, effective 30 days after
publication in the Federal Register.
2. The Postal Service shall make a good-faith effort to make
appropriate adjustments to the format of the fee distribution in each
year's Annual Compliance Report, as necessary to reflect product
changes.
3. The Secretary shall arrange for publication of this order in the
Federal Register.

By the Commission.
Stacy L. Ruble,
Secretary.

List of Subjects in 39 CFR Part 3050

Administrative practice and procedure, Reporting and recordkeeping
requirements.

For the reasons discussed in the preamble, the Commission amends
Chapter III of title 39 of the Code of Federal Regulations as follows:

PART 3050--PERIODIC REPORTING

0
1. The authority citation for part 3050 continues to read as follows:

Authority: 39 U.S.C. 503, 3651, 3652, 3653.

0
2. Amend Sec. 3050.21 by:
0
a. Revising paragraphs (a) and (f)(4) and (5),
0
b. Adding paragraph (f)(6),
0
c. Revising paragraph (j), and
0
d. Adding paragraphs (k), (l), and (m).
The revisions and addtions read as follows:

Sec. 3050.21 Content of the Postal Service's section 3652 report.

(a) No later than 90 days after the close of each fiscal year, the
Postal Service shall submit a report to the Commission analyzing its
costs, volume, revenue, rate, and service information in sufficient
detail to demonstrate that all products during such year comply with
all applicable provisions of title 39 of the United States Code. The
report shall provide the items in paragraphs (b) through (m) of this
section.
* * * * *
(f) * * *
(4) Analyze the contribution of the agreement to institutional
costs for its most recent year of operation. The year analyzed shall
end on the anniversary of the negotiated service agreement that falls
within the fiscal year covered by the Postal Service's annual periodic
reports to the Commission and include the 12 preceding months. The
analysis shall show all calculations and fully identify all inputs.
Inputs used to estimate the effect on total contribution to the Postal
Service, such as unit costs and price elasticities, shall be updated
using fiscal year values;
(5) Analyze the effect of the negotiated service agreement (and
other functionally equivalent negotiated service agreements) on the
marketplace. If there were harmful effects, explain why those effects
were not unreasonable; and
(6) Provide financial or other supporting documentation that
demonstrates that non-compensatory market dominant negotiated service
agreements improve the net financial position of the Postal Service
over default rates or enhance the performance of mail preparation,
processing, transportation, or other functions.
* * * * *
(j) For all market dominant and competitive products:
(1) Provide a distribution breakdown of fee revenues, including all
underlying calculations and source workpapers; and
(2) Provide any third-party service performance results upon which
any financial penalty or bonus is determined, and identify the amount
of any forfeited revenue;
(k) Provide all total workhour data and data sources showing
workhour measurements by Labor Distribution Code;
(l) For the Inbound Letter Post product, provide revenue, volume,
attributable cost, and contribution data by Universal Postal Union
country group and by shape for the preceding the fiscal year subject to
review and each of the preceding four fiscal years; and
(m) Provide any other information that the Postal Service believes
will help the Commission evaluate the Postal Service's compliance with
the applicable provisions of title 39 of the United States Code.

0
3. Amend Sec. 3050.25 by revising paragraphs (c), (d), and (e) to read
as follows:

Sec. 3050.25 Volume and revenue data.

* * * * *
(c) Revenue, pieces, and weight by rate category and special
service by quarter, within 40 days of the close of Quarters 1, 2, and 3
of the fiscal year and 60 days after Quarter 4, but no later than the
filing of reports filed pursuant to section 3050.40(a) or 3050.40(b);
(d) Quarterly Statistics Report, including estimates by shape,
weight, and indicia, within 40 days of the close of Quarters 1, 2, and
3 of the fiscal year and 60 days after Quarter 4 but no later than the
filing of reports filed pursuant to section 3050.40(a) or 3050.40(b);
and
(e) Billing determinants within 60 days of the close of Quarters 1,
2, and

[[Page 49294]]

3 of the fiscal year and 90 days after Quarter 4.

0
4. Amend Sec. 3050.28 by revising paragraph (b) introductory text,
tables 1 and 2 in paragraph (b)(1), and paragraph (c) to read as
follows:

Sec. 3050.28 Monthly and pay period reports.

* * * * *
(b) Monthly Summary Financial Report on the 24th day of the
following month, except that the reports for the last months of
Quarters 1, 2, and 3 of the fiscal year shall be provided at the time
that the Form 10-Q report is provided and the report for the last month
of Quarter 4 of the fiscal year shall be provided at the time that the
Form 10-K report is provided;
(1) * * *

Table 1--USPS Monthly Financial Statement
Month, Fiscal Year
[$ millions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Current Period Year-to-Date
-------------------------------------------------------------------------------------------------------------------------------
Actual Plan SPLY % Plan Var % SPLY Var Actual Plan SPLY % Plan Var % SPLY Var
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revenue:
Operating Revenue
Other Revenue
Total Revenue
Operating Expenses
Personnel Compensation and Benefits
Transportation
Supplies and Services
Other Services
Total Operating Expenses
Net Operating Income
Interest Income
Interest Expense
Total Net Income
Other Operating Statistics
Mail Volume (Millions)
Total Market Dominant Volumes
Total Competitive Product Volumes
Total Mail Volumes
Total Workhours (Millions)
Total Career Employees
Total Non-Career Employees
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Table 2--Mail Volume and Mail Revenue
Month, Fiscal Year
[Thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Current Period Year-to-Date
-----------------------------------------------------------------------------------------------------
Actual SPLY % SPLY Var Actual SPLY % SPLY Var
--------------------------------------------------------------------------------------------------------------------------------------------------------
Market Dominant Products:
First Class:
Volume
Revenue
Periodicals:
Volume
Revenue
USPS Marketing Mail:
Volume
Revenue
Package Services:
Volume
Revenue
All Other Market Dominant Mail:
Volume
Revenue
Total Market Dominant Products:
Volume
Revenue
Total Competitive Products
Volume
Revenue
Total Operating Revenue:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Volume
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 49295]]

* * * * *
(c) National Consolidated Trial Balances and the Revenue and
Expense Summary on the 24th day of the following month, except that the
reports for the last month of Quarters 1, 2, and 3 of the fiscal year
shall be provided at the time that the Form 10-Q report is provided and
the report for the last month of Quarter 4 of the fiscal year shall be
provided at the time that the Form 10-K report is provided;
* * * * *

0
5. Amend Sec. 3050.60 by revising paragraph (c) to read as follows:

Sec. 3050.60 Miscellaneous reports and documents.

* * * * *
(c) The items listed in paragraph (b) of this section in electronic
form;
* * * * *
[FR Doc. 2018-21249 Filed 9-28-18; 8:45 am]
BILLING CODE 7710-FW-P

Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations 49287

Proposed changes to Table 2 included a The Commission’s proposed rules components of existing ACR folders. Id.
replacement of the current input also removed a requirement from at 4–5. However, for fee distribution
‘‘Standard Mail’’ to ‘‘USPS Marketing § 3050.60. Id. at 19. The current information required by proposed
Mail,’’ and the replacement of the § 3050.60(c) requires the Postal Service § 3050.21(j), the Postal Service notes
‘‘Total All Mail’’ input and its to provide hard and electronic copies of that in Docket Nos. ACR2015, ACR2016,
components with distinct inputs for any publications or handbooks, data and ACR2017, the format of the
‘‘Total Volume’’ and ‘‘Total Operating collection forms, and training information varied. Id. at 5. The Postal
Revenue.’’ 10 handbooks whenever they are changed. Service states that the format varied due
In Order No. 4706, the Commission The Commission, finding that providing to foreseeable changes in circumstances,
also explained several modifications to a hard-copy form might create including new products, new product
the existing rules that the Commission unnecessary administrative effort, names, price adjustments, and transfers.
deemed necessary to increase the proposed to remove the requirement of Id. The Postal Service suggests that if
efficiency and decrease the providing those publications in hard- the Commission desires to specify the
administrative burden, for both the copy form.17 format for fee distribution report each
Postal Service and the Commission, of In Order No. 4706, the Commission year, the existing Chairman’s
the Annual Compliance Determination invited comments on the proposal from Information Request procedure would
(ACD) process. Id. at 13. The proposed interested parties. Id. be most appropriate. Id. at 6.
rules added a requirement that the Alternatively, the Postal Service
Postal Service file documentation with III. Comments suggests that under the proposed rule, it
its Annual Compliance Report (ACR) In response to Order No. 4706, the could make a good-faith effort to make
showing that non-compensatory market Commission received comments from appropriate adjustments to the report’s
dominant negotiated service agreements the Postal Service,18 UPS,19 the Public format. Id.
(NSAs) improve the Postal Service’s net Representative,20 the U.S. Chamber of The Postal Service states that the
financial position or enhance the Commerce,21 and the National Commission should exclude proposed
performance of mail preparation, Association of Manufacturers (NAM).22 § 3050.21(m), requiring Inbound Letter
processing, transportation, or other Postal Service Comments. The Postal Post revenue, volume, attributable cost,
functions.11 Service supports the proposed rules and contribution data by UPU country
Proposed § 3050.21(j) replaced the regarding deadlines for periodic reports, group and by shape. Id. at 7. The Postal
existing section requiring the Postal the format of the Monthly Summary Service contends that the rule seeks
Service to provide any information it Financial Report, and the removal of the information that is ‘‘unrelated to the
believes will assist the Commission in requirement that the Postal Service Commission’s performance of its annual
evaluating compliance with title 39. The produce hard copies of updated compliance determination, would
Commission’s proposed rules publications or handbooks.23 encourage an incomplete and
renumbered that requirement as The Postal Service agrees in theory misleading analysis of the financial
§ 3050.21(n), and revised § 3050.21(j) to that including in the initial ACR filing performance of [inbound letter post,24]
require that the Postal Service provide certain information it routinely provides and create a risk of significant harm
a distribution breakdown of mail fees in response to information requests from disclosure of commercially
for market dominant and competitive would improve efficiency. Id. at 4. The sensitive data.’’ Id.
products.12 Postal Service notes that for information The Postal Service states that there is
Proposed § 3050.21(k) added a no justification for separation of
regarding non-compensatory bilateral
requirement that the Postal Service information by UPU country group or by
agreements, international product third-
provide in its annual filing any third- shape for ACR purposes. Id. The Postal
party service performance, and total
party service performance results where Service states that the Commission’s
workhour and related data by Labor
a financial penalty or bonus is applied, observations in previous ACR dockets
Distribution Code, the Postal Service
and to provide the amount of any on Inbound Letter Post are
has provided the reports as additional
forfeited revenue.13 ‘‘inapplicable to the current and future
Proposed § 3050.21(l) added a 17 Id. financial performance of Inbound Letter
at 19, proposed § 3050.60(c).
requirement that the Postal Service 18 United States Postal Service Comments Post,’’ and do not justify the proposed
provide all total workhour data and data Regarding Order No. 4706, August 17, 2018 (Postal reporting requirements. Id. at 8. The
sources, showing workhour Service Comments). Postal Service states that the proposed
measurements by Labor Distribution 19 Comments of United Parcel Service, Inc. on
rule’s 5-year reporting period is
Code.14 Notice of Proposed Rulemaking to Revise the
Periodic Reporting Requirements, August 17, 2018
inappropriate because of the year-to-
In proposed § 3050.21(m), the (August 17 UPS Comments). year changes in UPU country groups,
Commission added a requirement that 20 Public Representative Comments on Notice of and the limited availability of shape-
the Postal Service provide with its ACR Proposed Rulemaking to Revise Periodic Reporting based data. Id. at 9.
Inbound Letter Post 15 revenue, volume, Requirements, August 17, 2018 (August 17 PR The Postal Service also argues that the
Comments).
attributable cost, and contribution data 21 Comments of the U.S. Chamber of Commerce,
information sought will not present all
aggregated by Universal Postal Union August 17, 2018 (Chamber of Commerce revenue sources for inbound letter post.
(UPU) country group and by shape for Comments). Id. The Postal Service states that it
the preceding five fiscal years.16 22 Comments of National Association of receives inbound letter post revenue
Manufacturers, August 17, 2018 (NAM Comments). from a number of other sources,
23 Postal Service Comments at 3–4. The Postal
10 Id. at 12, proposed section 3050.28(b)(1), Table including NSAs, supplemental UPU
2. Service identifies two minor issues with proposed
remuneration for signature confirmation
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11 Id.
at 13–14, proposed § 3050.21(f)(6). § 3050.28(b)(1), Table 1. In Order No. 4706, the
12 Id. Commission indicated it would include an input for
at 14, proposed § 3050.21(j).
13 Id. at 15, proposed § 3050.21(k).
‘‘Total Revenue’’ but the input is not in the 24 The Postal Service appears to distinguish the

proposed Table 1. Also, existing input ‘‘Net product, Inbound Letter Post, from a group of
14 Id. at 15–16, proposed § 3050.21(l).
Operating Income’’ appears as ‘‘New Operating related products comprising ‘‘inbound letter post.’’
15 ‘‘Inbound Letter Post’’ as defined in the Mail
Income’’ in the proposed Table 1. The Postal For clarity, this Order capitalizes the name of the
Classification Schedule (MCS) section 1130. Service recommends correcting Table 1 consistent product, and does not capitalize when referring to
16 Id. at 16–18, proposed § 3050.21(m). with the explanation in Order No. 4706. Id. at 4. the Postal Service’s group of related products.

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49288 Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations

and tracking, PRIME multilateral Summary Financial Report.25 She notes, Commerce supports requiring the
agreements, negotiated rates under as the Postal Service does, that the input reporting of Inbound Letter Post data.
bilateral agreements, air conveyance for ‘‘Total Revenue’’ mentioned in Order The Chamber of Commerce suggests that
dues, and base terminal dues. Id. at 9– No. 4706 is not in the proposed the Postal Service should provide public
10. The Postal Service argues that regulatory text. August 17 PR Comments data ‘‘so long as delivery rates for
proposed § 3050.21(m) relies only on at 4. She also notes that the proposed inbound letter post are established by
the MCS section 1130 Inbound Letter regulatory text replaces the input ‘‘Other intergovernmental agreement and not
Post revenue from base terminal dues Expenses’’ with ‘‘Other Services’’ equally available to domestic mailers
and air conveyance dues, without taking without explanation. Id. and private international carriers.’’
into account these other sources of Regarding proposed § 3050.21(f)(6), Chamber of Commerce Comments.
revenue for inbound letter post. Id. at and (j) through (m), the Public National Association of
10. Representative supports the Manufacturers Comments. NAM
The Postal Service suggests revising Commission’s efforts to improve and supports requiring data on Inbound
proposed § 3050.21(m) to include streamline ACR dockets by requiring Letter Post, stating that such data would
inbound revenue and costs for other certain reports be included in an initial ‘‘allow the Commission to draw
MCS products including the Inbound filing. See id. at 1. However, she meaningful inferences from trends in
Registered Mail, the PRIME Exprés suggests that the Commission can global postal traffic and to spot the
Service Agreement, the PRIME Tracked improve the proposed rules by using nature and severity of problems with
Service Agreement, the Inbound Market clearer, consistent, and precise regard to net-losses incurred by the
Dominant Multi-Service Agreements terminology. Id. She provides line-by- [Postal Service].’’ NAM Comments at 1.
with Foreign Postal Operators 1, and the line revisions with suggested NAM suggests that the UPU terminal
PRIME Registered Service Agreement. terminology and minor reorganization. dues system is ‘‘prime for abuse.’’ Id.
Id. at 10–11. Id. at 5–6; Attachment A. NAM states that there is a compelling
Finally, the Postal Service suggests The Public Representative proposes public interest in requiring the data and
that producing the Inbound Letter Post that because both proposed § 3050.21(j) that the burden on the Postal Service is
information would put sensitive non- and (k) apply to ‘‘all market dominant ‘‘non-existent.’’ Id. NAM suggests that
public material at risk. Id. at 11–12. and competitive products,’’ both the Commission require the Postal
UPS Comments. UPS supports the requirements are better nested as Service to ‘‘disclose more granular and
proposed modifications to reporting subparagraphs, below a paragraph useful data over time.’’ Id. at 1–2.
deadlines, noting that the deadlines are stating that both requirements apply to IV. Commission Analysis
reasonable and should relieve the all market dominant and competitive
reporting burden on the Postal Service, products. Id. at 2–3 (emphasis in A. Deadlines for Certain Periodic
ultimately allowing it to provide better original). She notes, for example, that Reports
data. August 17 UPS Comments at 2. the proposed rules unnecessarily No commenter objects to the proposed
Regarding changes to the Monthly include the phrase ‘‘including all deadlines for the filing of quarterly
Summary Financial Report, UPS urges negotiated service agreements’’ for RPW, QSR, and Billing Determinants
the Commission to require the Postal proposed paragraph (k) of this section, reports. Neither does any commenter
Service to produce two versions of the but not for proposed paragraph (j) of this object to the proposed deadlines for the
affected tables for the next 12 months section, despite both requirements being Monthly Summary Financial Report or
(alternatively 6 months if 12 months applicable to NSAs. Id. at 2. the Trial Balance.
were found burdensome). Id. at 4. UPS The Public Representative also Accordingly, the Commission makes
requests that the Commission confirm recommends clarifying proposed no changes to the deadlines set forth at
that the only permitted departures from § 3050.21(m), which requires Inbound proposed §§ 3050.25(c)–(e), and
the current de facto reporting format of Letter Post data for ‘‘the preceding five 3050.28(b), (c). The Commission adopts
Table 2 are those described in Order No. fiscal years.’’ Id. at 3. She notes that, as those rules as set forth in Order No.
4607. Id. at 5. UPS states that any future written, the rule appears to require data 4706.
changes to the reporting format should for the five years preceding the year of
the ACR filing, without including the B. Format of Monthly Summary
include a reproduction of past monthly Financial Report
reports using new definitions, or the year of the filing. Id. at 3–4 (emphasis
added). She also states that the The proposed revisions to the
production of both new and old
proposed rule was unclear as to whether Monthly Summary Financial Report
versions of the reports for a period. Id.
the rule requires the Postal Service to utilize a definition of ‘‘operating
UPS supports all of the additional
provide data for each of the five years, revenue’’ that is consistent with the
requirements in the proposed rules. Id.
or the five years in aggregate. Id. at 4. definition used for Form 10–K
at 5–8. UPS asks the Commission to
Therefore, she suggests changing the reporting.26
clarify that the Postal Service should
language of the rule to require data ‘‘for While no commenter objects to the
report Inbound Letter Post information
the fiscal year subject to review and format changes as proposed, UPS
according to proposed § 3050.21(m) in a
each of the preceding four fiscal years.’’ requests that the Commission require
public filing or library reference. Id. at
Id. at 4, 6. the Postal Service to either: (1)
8. UPS renews its request for the
The Public Representative includes a Reproduce figures in past monthly
Commission to consider requiring
list of line-by-line revisions to the reports using the new proposed
segment-level reporting for competitive
proposed rules, and a redlined version definitions; or (2) produce monthly
products in order to promote
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of the regulatory text. Id. at 5–6; reports using both the old and new
transparency. Id.
Attachment A. versions of the affected tables. August
Public Representative Comments. The
U.S. Chamber of Commerce 17 UPS Comments at 3–4. UPS states
Public Representative supports the
Comments. The U.S. Chamber of that without a device enabling direct
proposed changes to reporting
deadlines, and does not object to 25 August 17 PR Comments at 1–2; March 7 PR 26 United States Postal Service, 2017 Report on
changes to the format of the Monthly Comments at 5, 6 (incorporating prior comments). Form 10–K, November 14, 2017, at 19.

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Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations 49289

comparison of reports completed under forth in Order No. 4706. Postal Service The Commission acknowledges that
the old format to reports completed Comments at 3–4; August 17 PR the Public Representative’s suggested
under the new format, ‘‘it will be Comments at 4–5. Both the Postal revisions are a more concise and
difficult for the Commission and Service and Public Representative note effective alternative to achieving the
interested parties to compare certain the omission of the line input for ‘‘Total intent of the proposed rules. The
data across different time periods.’’ Id. Revenue’’ in proposed § 3050.28(b)(1), Commission finds that adopting the
at 4. UPS argues that there is ‘‘negligible Table 1. Id.; August 17 PR Comments at minor changes creates more precise
burden on the Postal Service’’ in 4–6. requirements and will improve the
producing the comparable data, and that The Public Representative also notes quality, accuracy, and completeness of
in the interest of transparency the that the proposed Table 1 also replaces the Postal Service’s reporting.
Commission should require its the existing line input for ‘‘Other Accordingly, the Commission adopts
production for 12 months. Id. Expenses’’ with ‘‘Other Services.’’ the Public Representative’s suggested
Alternatively, to the extent that the August 17 PR Comments at 4. She also reorganization and rewording in its final
Commission finds such production to be notes a duplicative heading row in rules.
too burdensome, UPS suggests that the proposed Table 1, and an underlined
Commission require production of both 2. Comments Regarding Proposed
heading, ‘‘Total Volume’’ in proposed § 3050.21(m)
versions for only six months. Id. Table 2. Id. at 6.
In its reply comments, the Postal The U.S. Chamber of Commerce,
The Postal Service notes that the line
Service avers that requiring parallel NAM, and UPS, each support proposed
input for ‘‘Net Operating Income’’ in
reporting of the Monthly Summary § 3050.21(m), requiring the Postal
existing Table 1 appears to have
Financial Report, ‘‘would be Service to provide Inbound Letter Post
unwarranted given the modest nature of changed to ‘‘New Operating Income.’’
revenue, volume, attributable cost, and
the proposed changes.’’ Postal Service Postal Service Comments at 4. The
contribution data by UPU country group
Reply Comments at 5. The Postal Postal Service suggests that the
and shape.28 Those commenters note
Service also noted that the Public Commission correct the change. Id.
the importance of transparency and
Representative identified alternative The Commission acknowledges the public access to Inbound Letter Post
sources of the data in the removed sub- errors identified by the Postal Service data, and identify particular public
inputs.27 UPS states that although and the Public Representative, and interest in the Inbound Letter Post
‘‘Government Appropriation’’ data are makes appropriate corrections in the product.
available, it is unclear whether the final rules. The Postal Service opposes the
corresponding ‘‘Mail and Service C. Additional Requirements—Proposed proposed reporting requirement, arguing
Revenue’’ data are available from other § 3050.21(f)(6), (j)–(m) that information sought: (1) Is unrelated
sources. August 17 UPS Comments at 4. to the Commission’s performance of its
The Commission finds that the 1. Public Representative’s Clarification annual compliance determination; (2)
revised format, as proposed, will Recommendations would encourage incomplete and
improve the quality, accuracy, and The Public Representative identifies misleading analysis of Inbound Letter
completeness of the Postal Service data that proposed § 3050.21(j) and (k) both Post performance; and (3) would create
pursuant to 39 U.S.C. 3652(e)(2). While apply to all market dominant products. a risk of harm from disclosure of
the Commission recognizes the minimal commercially sensitive data of third
August 17 PR Comments at 2–3. She
burden on the Postal Service in parties. Postal Service Comments at 7.
proposes revising paragraph (j) of this
producing duplicate tables under the For the reasons set forth below, the
section to include both requirements set
current format and under the new Commission declines to make any
forth in proposed paragraphs (j) and (k)
format, it also finds that the proposal additional modifications to proposed
of this section, with the requirements—
represents only a modest format change, § 3050.21(m).
the distribution breakdown of fee
and that the itemized data remain
revenues and third-party performance a. The Requirement Is Related to the
available. The ‘‘Government
results and forfeited revenue—as Commission’s ACD
Appropriations’’ data, which refers to
subparagraphs (1) and (2). Id.
amounts incurred in providing free and The Postal Service suggests that the
reduced rate mail, are available in the The Public Representative suggests
Commission’s conclusions on the
Monthly Trial Balance. The former revising the requirement in proposed
Inbound Letter Post product are
‘‘Mail Services Revenue’’ line input § 3050.21(j) of ‘‘a distribution
‘‘inapplicable to the current and future
represents the remainder of the new line breakdown of mail fees’’ with ‘‘a
performance’’ of the product. Id. at 8.
input ‘‘Operating Revenue’’ on Table 1 distribution breakdown of fee revenues’’
The Postal Service also states that those
and ‘‘Total Operating Revenue’’ on stating that her suggestion is more
conclusions provide no justification for
Table 2, and is now included in precise and inclusive of non-mail
the disaggregation of Inbound Letter
‘‘Operating Revenue’’ combined with products. Id. at 3.
Post data by UPU country group and
the ‘‘Government Appropriations’’ The Public Representative suggests a shape. Id.
amount. The Commission declines to number of other changes, including As noted in Order No. 4706, it is not
order that the Postal Service provide the those reflecting her proposed uncommon for the Commission to seek
Tables of the Monthly Summary renumbering. Id. at 5–6. She suggests enhanced information about products of
Financial Report in both formats as the hyphenating the word ‘‘non- particular concern. For example, in the
change itself is minor, and the data are compensatory’’ in paragraph (f)(6) of FY 2017 ACD report, the Commission
available by other means. this section. Id. at 5. She suggests
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chose to analyze Periodicals volume,
Both the Postal Service and the Public revising the 5-year reporting revenue, attributable cost, and
Representative note that the requirement in paragraph (m) of this contribution, as well as unit revenue,
Commission’s proposed rules do not section, replacing ‘‘the preceding five unit attributable cost, and unit
precisely match the explanations set fiscal years’’ with ‘‘for the fiscal year
subject to review and each of the 28 Chamber of Commerce Comments; NAM
27 See id. at 1–4; March 7 PR Comments at 6–7. preceding four fiscal years.’’ Id. at 6. Comments at 1–2; August 17 UPS Comments at 8.

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49290 Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations

contribution for fiscal years 2007 executive branch to seek reforms within challenges facing the product, and to
through 2017.29 The Commission, the UPU’s terminal dues system that make appropriate recommendations.
noting a year-after-year trend for the provides: (1) Fair and The new rate structure has separate
Periodicals class, requested this nondiscriminatory terminal dues that rates for letters/flats and bulky letters/
enhanced disaggregated data in order to promote unrestricted and undistorted small packets, which vary by UPU
address ongoing issues with the class. competition; (2) terminal dues that country group.32 The Commission’s
The past performance of the Periodicals cover the costs of delivering Inbound ability to identify which rates account
class, while not directly at issue in the Letter Post mailpieces; (3) and terminal for what portion of the product’s
ACD, showed a trend of insufficient dues that avoid favoring foreign mailers contribution is critical to assessing how
Periodicals revenues to cover over domestic mailers or favoring postal to improve overall product cost
attributable costs. operators over private sector entities.31 coverage. To the extent that a new price
When the Commission determines the This Presidential Memorandum structure does improve Inbound Letter
noncompliance of a product, pursuant highlights the Administration’s focus on Post performance, such improvement
to 39 U.S.C. 3653(c), it must order that the Inbound Letter Post product. will be reflected in the data reporting,
the Postal Service ‘‘take such action as Accordingly, the Commission finds that and more easily attributed to the
the Commission considers appropriate providing enhanced data for the changes in price structure, due to the
in order to achieve compliance.’’ 39 purposes of conducting a trend analysis fuller picture provided by the enhanced
U.S.C. 3662(c). Conducting a trend across a period of years is appropriate, reporting.
analysis, as done for the Periodicals particularly where the prices for a Given the public interest and the
class during the FY 2017 annual product or products have routinely been Commission’s recurring findings that
compliance review, best allows the non-compensatory. Inbound Letter Post revenue fails to
Commission to determine the The Postal Service notes that a new cover the product’s costs, the
appropriate remedial actions. Past terminal dues system that charges Commission finds that it is necessary
performance of the product, particularly higher prices for bulky letters and small and appropriate to require reporting at
where it shows a trend of continued packets than for letters and flats may this additional level of aggregation. The
failure to cover its attributable costs, is improve the Inbound Letter Post Postal Service’s current reporting format
relevant when determining the product’s financial performance. Postal does not disaggregate by shape and UPU
appropriate corrective action in an ACD. Service Comments at 8. The Postal country group so it is difficult to
As noted in Order No. 4706, there is Service avers that the past performance determine what particular aspect or
a well-documented history of concern of Inbound Letter Post under the former aspects of the terminal dues system are
about Inbound Letter Post’s ongoing terminal dues rate structure is not responsible for most of the negative
negative contribution, both in relevant to the Commission ACD contribution. Providing this
disaggregated information will aid the
Commission orders and in stakeholder dockets under a new rate structure. Id.
Commission in determining the
comments.30 Additionally, a recent at 7–8.
appropriate remedial action to
Presidential Memorandum directed the The revenue, volume, attributable
prescribe.
cost, and contribution data—even for Furthermore, the legislative history
29 Order No. 4706 at 17; Docket No. ACR2017,
past years under a different terminal underlying the Postal Accountability
Annual Compliance Determination Report, Fiscal dues rate structure—are of significant
Year 2017, March 29, 2018, at 44–45 (FY 2017 and Enhancement Act (PAEA) indicates
ACD). value in the Commission’s ACD. The that enhanced transparency was a key
30 Order No. 4706 at 18 n.35. See Docket No. Commission’s analysis of these data motivation in the enactment of the
IM2016–1, Congressional Letter to Secretary of State assists in identifying the cause or causes PAEA.33 The Commission, consistent
Rex Tillerson and Postmaster General Megan of the product’s negative contribution. If
Brennan, November 8, 2017; Docket No. ACR2017, with this goal, aims to be transparent in
Comments of James Smaldone, Founder & CEO,
for example, under the new rate its issuance of regulatory decisions and
Mighty Mug, Inc., January 25, 2018, at 1–2; Docket structure, the product continues to encourages public participation in its
No. ACR2017, Comments of National Association of display similar trends, the Commission dockets.34 In fact, the PAEA requires the
Manufacturers on Order No. 4377, January 24, 2018, might identify problems with the
at 2; Docket No. ACR2017, Comments of United Commission to consider whether the
Parcel Service, Inc. in Response to Notice of
product unrelated to price structure. public has access to ‘‘timely, adequate
Preliminary Determination to Unseal the Material Price structure is not singularly information’’ when prescribing the
Filed in Response to Chairman’s Information determinative of a product’s financial content and form of the ACR. 39 U.S.C.
Request No. 1, Question 1, January 24, 2018, at 2– performance. Other factors might
3; Docket No. ACR2017, Comments of the 3652(e)(1)(A). The additional Inbound
Honorable Kenny Marchant on Determination to
contribute to the product’s performance. Letter Post data required under
Unseal the Material Filed in Response to For example, in its trend analysis on the proposed § 3050.21(m) will not only
Chairman’s Information Request No. 1, Question 1, Periodicals class, the Commission improve the completeness of
January 25, 2018, at 1–2; Docket No. ACR2017, identified declining productivity of mail
Comments of U.S. Chamber of Commerce, January information available to the
25, 2018, at 1–2; Docket No. ACR2017, Comments
processing operations as a reason for the
of SBE Council Related to Inbound Letter Post, negative trend. See FY 2017 ACD at 50. 32 See Universal Postal Union, Decisions of the

February 20, 2018, at 1–2; Docket No. ACR2017, The data required by proposed 2016 Istanbul Conference, Universal Postal
Comments of United Parcel Service, Inc. in § 3050.21(m) will assist the Convention, Final Protocol, Section VII, Article 29,
Response to Notice of Preliminary Determination to October 6, 2016.
Unseal the Postal Service’s Response to Chairman’s
Commission’s efforts to identify the 33 Public Law 109–435, 120 Stat. 3198 (2006).

Information Request No. 15, February 23, 2018, at Both the committee report accompanying S. 2468,
3–4; Docket No. ACR2017, Reply Comments of 31 See Presidential Memorandum for the the Senate’s 2004 postal reform bill, and the
United Parcel Service, Inc. on United States Postal Secretary of State, Secretary of the Treasury, committee report accompanying H.R. 22, the House
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Service Motion for Reconsideration of Order No. Secretary of Homeland Security, Postmaster of Representatives’ 2005 postal reform bill, noted
4551, April 13, 2018, at 4; Docket No. ACR2017, General, and Chairman of the Postal Regulatory that enhanced transparency and accountability
Comments of U.S. Chamber of Commerce, April 13, Commission, August 23, 2018, available at: https:// were essential aspects of postal reform. S. Rep. No.
2018, at 1; Docket No. IM2018–1, Comments www.whitehouse.gov/presidential-actions/ 108–318 at 5 (2004), H.R. Rep. No. 109–66, pt. 1 at
Received from U.S. Representatives Kenny presidential-memorandum-secretary-state- 43 (2005).
Marchant and Ralph Abraham, July 3, 2018, at 1; secretary-treasury-secretary-homeland-security- 34 See Postal Regulatory Commission, Guiding

Docket No. IM2018–1, Comment Received from postmaster-general-chairman-postal-regulatory- Principles, Openness, available at: www.prc.gov/
U.S. Senator Bill Cassidy, M.D., July 3, 2018, at 1. commission/. mission.

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Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations 49291

Commission for its determination, but The Postal Service suggests that for an Service Agreement product did not. Id.
will also enhance public participation accurate assessment of the financial at 74.
by presenting more comprehensive and performance of ‘‘inbound letter post,’’ The Commission fulfills its mandate
understandable data for a product of the Commission should consider to determine whether the rates or fees in
substantial public interest. volume and supplemental revenue effect comply with 39 U.S.C. 3622 at the
The Postal Service also states that the derived from those other products. The product level. 39 U.S.C. 3653(b)(1). The
proposed rule’s 5-year reporting period Postal Service proposes an alternative Postal Service provides no compelling
is inappropriate because of the year-to- reporting requirement for inbound basis for the Commission to depart from
year changes in the composition of UPU revenues and costs for MCS sections the reasonable practice of evaluating
country groups, and that data 1130, 1510.2, and 1602. Postal Service compliance for each market dominant
limitations may reduce the Postal Comments at 10–11. Notably, the Postal international mail product at the
Service’s ability to produce shape-based Service’s proposal does not require that product level. The other products the
data for previous years. Postal Service the Postal Service report the alternative Postal Service classifies as ‘‘inbound
Comments at 9. data by UPU country group and shape. letter post’’ are in fact distinct products
The Commission acknowledges that See id. from the Inbound Letter Post product,
changes to the composition of UPU and the performances of those products
The Commission finds the Postal
country groups create year-to-year speak for themselves. The Commission
Service’s concerns about misleading
comparison challenges. However, the reviews those products for compliance
data unpersuasive. The Postal Service
Commission has experience in transparently in its ACD. Because the
made a similar argument during the FY
analyzing changes within and among Commission makes a determination of
2017 ACD proceeding.38 In Docket No.
products. For example, the Commission compliance for each of those products
ACR2017, the Postal Service asserted
has been able to account for previous individually, increased granularity will
that the analysis for the Inbound Letter
changes to the composition of UPU not give rise to a misleading
Post product should include analysis of representation of Inbound Letter Post
country groups in previous ACDs.35 ‘‘the volume and revenue for
Thus, the Commission is prepared to performance. In contrast, the Postal
supplemental UPU remuneration for Service’s suggestion would mask the
address these challenges. To the extent signature confirmation and tracking on
that the Postal Service lacks a full 5-year data by aggregating it with other
registered items as well as for bilateral products’ data, which would be less
accounting of shape-based data, the market dominant NSAs and the PRIME
Commission notes that the Postal transparent and potentially misleading.
multilateral market dominant NSAs.’’ Accordingly, the Commission declines
Service is able to request the exclusion FY 2017 ACD at 66. The Postal Service
or partial exclusion of that component to remove the proposed reporting
stated that the Public Representative’s requirement for the Inbound Letter Post
of the reporting requirement until such analysis of the Inbound Letter Post
time that shape-based data becomes product on the basis that the additional
product was incomplete because it was data will be incomplete or misleading.
available for an entire 5-year period. See limited to the volume and revenue for
39 CFR 3055.3(a). the Inbound Letter Post product. Id. In c. The Potential Risk of Commercial
b. The Requirement Does Not Encourage the FY 2017 ACD report, the Harm Resulting From Disclosing
Incomplete or Misleading Analysis of Commission rejected the Postal Commercially Sensitive Data of Third
Inbound Letter Post Performance Service’s suggested analysis and stated Parties is Outside the Scope of This
that ‘‘[t]he Commission has consistently Rulemaking Proceeding
The Postal Service states that
proposed § 3050.21(m), if implemented, evaluated compliance at the product The Postal Service states that
will ‘‘encourage the use of data that level because products, by definition, requiring reporting of additional data by
support an incomplete and inaccurate reflect distinct cost or market UPU country group and shape would
evaluation of the financial performance characteristics to which a rate or rates put commercially sensitive third-party
of inbound letter post.’’ Postal Service are applied.’’ Id. at 67. information at risk of disclosure.39 The
Comments at 9. The Postal Service’s In each ACD, the Commission reviews Postal Service acknowledges it would
concern is that because proposed each product, including those identified file the Inbound Letter Post data
§ 3050.21(m) requires reporting on the by the Postal Service as ‘‘inbound letter required under proposed § 3050.21(m)
Inbound Letter Post product 36 it will post,’’ for cost coverage and compliance. under seal, but suggests that a non-
not reflect the financial performance of For example, in FY 2017, the public filing would likely be challenged.
other products the Postal Service Commission found that ‘‘International Id.
classifies as ‘‘inbound letter post.’’ 37 Ancillary Services did not cover its The Postal Service acknowledges that
attributable cost due to the failure of the PAEA and the Commission rules
35 See Docket No. ACR2016, Annual Compliance International Registered Mail to cover outline a procedure for application for
Determination Report, Fiscal Year 2016, March 28, its attributable cost.’’ Id. at 71. The non-public treatment of information.
2017, at 63–64. Commission also reviewed Market See id. To the extent that the Postal
36 MCS section 1130.
Dominant NSA products, finding that Service believes that public disclosure
37 The Postal Service identifies these products as
Inbound Market Dominant Multi- of Inbound Letter Post data separated by
MCS sections 1510.2.2 (International Ancillary
Services, Inbound International Registered Mail), Service Agreements with Foreign Postal UPU country group and shape would
1602.5 (Negotiated Service Agreements, Operators 1, Inbound Market Dominant
International, Inbound Market Dominant Registered Exprés Service Agreement 1, and
39 Postal Service Comments at 11–12. The Postal

Service Agreement 1), 1602.4 (Negotiated Service Service incorporates by reference its discussion in
Agreements, International, Inbound Market Inbound Market Dominant Registered Docket No. ACR2017. See Docket No. ACR2017,
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Dominant Exprés Service Agreement 1), 1602.6 Service Agreement 1 products satisfied United States Postal Service Motion for
(Negotiated Service Agreements, International, 39 U.S.C. 3622(c)(10), while Inbound Reconsideration of Order No. 4451, April 6, 2018;
Inbound Market Dominant PRIME Tracked Service Market Dominant PRIME Tracked Docket No. ACR2017, Response of the United States
Agreement, 1602.3 (Negotiated Service Agreements, Postal Service to Order No. 4409, February 23,
International, Inbound Market Dominant Multi- 2018; Docket No. ACR2017, United States Postal
Service Agreements with Foreign Postal Operators 38 See Docket No. ACR2017, Reply Comments of Service Notice of Filing Nonpublic Folder USPS–
1), July 15, 2018. Postal Service Comments at 10– the United States Postal Service on Inbound Letter FY17–NP40 and Application for Nonpublic
11. Post, February 27, 2018. Treatment, February 14, 2018.

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49292 Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations

cause a commercial harm, it could file determination would obviate the need single-level reporting is sufficiently
an application for non-public treatment to adopt proposed § 3050.21(j) as a final accurate and adequate for the purposes
pursuant to §§ 3007.200 and 3007.201 of rule. The Postal Service suggests that of assessing compliance. Accordingly,
this chapter. As noted in Order No. alternatively, the Commission could the Commission declines to adopt rules
4707, the application must particularly allow the Postal Service to make requiring segment-level reporting for
identify ‘‘the nature and extent of the reasonable updates to the format of the competitive products.
harm alleged and the likelihood of each report each year, pursuant to the
V. Changes to the Proposed Rules
harm.’’ 40 The Commission’s regulations anticipated product adjustments. Id.
also outlines a procedure for The Commission is satisfied with the The final rules incorporate many of
participants or the Commission to seek Postal Service’s proposal to make efforts the commenters’ suggestions. The final
to unseal material filed non-publicly by to make appropriate changes to the rules contain the correction of some
the Postal Service. See 39 CFR 3007.103; format of fee distribution data based on omissions from the proposed rules,
see also 39 CFR 3007.104. Accordingly, product adjustments. In its annual adjust the language of proposed rules,
the Commission will address the non- submission, the Postal Service should and restructure and renumber proposed
public status of data filed under identify any such product adjustments rules. The substance of the rules
proposed § 3050.21(m), if and when the and corresponding format changes. initially proposed in Order No. 4706
Postal Service files the data under seal largely remains the same. Below, the
D. Removal of Unnecessary Commission describes the differences
and if the Commission issues a Requirement in § 3050.60(c)
preliminary determination concerning between the proposed and final rules.
the appropriate degree of protection, if No commenter objects to the removal
of the requirement that the Postal A. Section 3050.21
any, to be accorded to materials filed Proposed § 3050.21(f)(6) is revised to
Service provide hard-copy updates of
under seal. hyphenate the word ‘‘non-
publications and handbooks. The Postal
The Commission finds that rules compensatory’’ pursuant to the
Service supports the modification. Id. at
regarding non-public treatment of suggestion of the Public Representative.
3. Accordingly, the Commission does
commercially sensitive information are Also, because of the addition of
not make any changes to proposed
sufficient in addressing the Postal paragraph (f)(6) of this section, the word
§ 3050.60(c).
Service’s concerns. The Postal Service’s ‘‘and’’ at the end of paragraph (f)(4) of
assertion that a challenge to a non- E. Other Comments—Segment-Level
this section is moved to the end of
public disclosure would put the Data
paragraph (f)(5) of this section. The
information ‘‘at risk’’ is not itself UPS requests that the Commission Commission adopts this revision
enough reason to support removing the reconsider its position on a proposal to pursuant to the Public Representative’s
proposed reporting requirement require segment-level reporting for suggestion.
altogether. Accordingly, the competitive products. August 17 UPS Proposed § 3050.21(j) and (k) are
Commission declines to remove Comments at 8. In Order No. 4706, the revised as paragraphs (j)(1) and (j)(2) of
proposed § 3050.21(m) on the basis of Commission explained that it declined this section. Paragraph (j) of this section
hypothetical risk to commercially to propose such requirements, because now reads ‘‘For all market dominant
sensitive information. the current single segment reporting is and competitive products.’’ Proposed
3. Concerns Regarding Proposed adequate for determining compliance. paragraph (j) of this section, now
§ 3050.21(j) Order No. 4706 at 12–13. The PAEA located at paragraph (j)(1) of this
allows the Commission to consider the section, required the distribution
The Postal Service states that it adequacy of information provided in breakdown of mail fees. The final rule
agrees, in theory, that including material determining the lawfulness of rates replaces ‘‘mail fees’’ with ‘‘fee
routinely requested in ACR proceedings charged, and can revise the reporting revenues’’ to more accurately reflect that
in the initial filing is likely to be more requirements to ‘‘improve the quality, the requirement applies to some non-
efficient. Postal Service Comments at 4. accuracy, or completeness of Postal mail products. Proposed paragraph (k)
The Postal Service notes, however, that Service data.’’ 39 U.S.C. 3652(e)(2). UPS of this section, now located at paragraph
for fee distribution data, the states that requiring segment-level (j)(2) of this section required the Postal
Commission’s requests have sought the reporting ‘‘would promote transparency Service to ‘‘provide . . . the amount of
information in different formats in each and represent an improvement over the any forfeited revenue.’’ Final
of the past three years. Id. at 5. The status quo.’’ August 17 UPS Comments § 3050.21(j)(2) revises the proposed rule,
Postal Service correctly attributes these at 8. now requiring that the Postal Service
format changes to continuing The Commission finds that UPS has ‘‘identify’’ the amount of forfeited
adjustments to products lists. Id. The not shown that the current single-level revenue.
Postal Service, anticipating that those reporting practices are inaccurate or Because the final rules combine
adjustments will continue going inadequate. UPS must show that the proposed paragraphs (j) and (k) of this
forward, offers two suggestions for data, ‘‘ha[ve] become significantly section, the final rules require a minor
determining the format of fee inaccurate or can be significantly restructuring and renumbering.
distribution data. Id. at 6. improved.’’ 39 U.S.C. 3652(e)(2)(A) Proposed paragraphs (l) through (n) of
The Postal Service suggests that the (emphasis added). The proposal for this section are revised and renumbered
Commission might determine that it is segment-level reporting may be as paragraphs (k) through (m) of this
most efficient to continue the current appropriate for review in another docket section, respectively.
practice of using an information request devoted toward the question. In the The Commission also revises
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specifying the format for the fee instant docket, however, UPS has not proposed § 3050.21(m), renumbered to
distribution data. Id. Such a demonstrated the inadequacy in the § 3050.21(l) in the final rules, pursuant
40 Docket No. ACR2017, Order Denying Motion
current reporting method or how it to the Public Representative’s
for Reconsideration of Order No. 4451 as Moot, July
would be significantly improved for suggestion. The proposed rule required
12, 2018, at 15 (Order No. 4707); see 39 CFR determining compliance. In fact, the Inbound Letter Post Date ‘‘for the
3007.201(b)(4). Commission finds that the current preceding five fiscal years.’’ Final

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$49294 Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations 3 of the fiscal year and 90 days after § 3050.28 Monthly and pay period reports. that the Form 10–Q report is provided Quarter 4. * * * * * and the report for the last month of ■ 4. Amend § 3050.28 by revising (b) Monthly Summary Financial Quarter 4 of the fiscal year shall be paragraph (b) introductory text, tables 1 Report on the 24th day of the following provided at the time that the Form 10– month, except that the reports for the K report is provided; and 2 in paragraph (b)(1), and paragraph last months of Quarters 1, 2, and 3 of the (c) to read as follows: (1) * * * fiscal year shall be provided at the time TABLE 1—USPS MONTHLY FINANCIAL STATEMENT MONTH, FISCAL YEAR [$ millions] Current Period Year-to-Date % SPLY % SPLY Actual Plan SPLY % Plan Var Actual Plan SPLY % Plan Var Var Var Revenue: Operating Revenue Other Revenue Total Revenue Operating Expenses Personnel Compensation and Benefits Transportation Supplies and Services Other Services Total Operating Expenses Net Operating Income Interest Income Interest Expense Total Net Income Other Operating Statistics Mail Volume (Millions) Total Market Dominant Volumes Total Competitive Product Volumes Total Mail Volumes Total Workhours (Millions) Total Career Employees Total Non-Career Employees TABLE 2—MAIL VOLUME AND MAIL REVENUE MONTH, FISCAL YEAR [Thousands] Current Period Year-to-Date Actual SPLY % SPLY Var Actual SPLY % SPLY Var Market Dominant Products: First Class: Volume Revenue Periodicals: Volume Revenue USPS Marketing Mail: Volume Revenue Package Services: Volume Revenue All Other Market Dominant Mail: Volume Revenue Total Market Dominant Products: Volume Revenue amozie on DSK3GDR082PROD with RULES Total Competitive Products Volume Revenue Total Operating Revenue: Total Volume VerDate Sep<11>2014 16:43 Sep 28, 2018 Jkt 247001 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\01OCR1.SGM 01OCR1$

Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Rules and Regulations 49295

* * * * * ACTION: Final rule. IV. Statutory and Executive Order Reviews
(c) National Consolidated Trial
SUMMARY: The Environmental Protection I. Background and Purpose
Balances and the Revenue and Expense
Summary on the 24th day of the Agency (EPA) is approving a State Under sections 110(a)(1) and (2) of the
following month, except that the reports Implementation Plan (SIP) revision CAA, states are required to submit
for the last month of Quarters 1, 2, and submitted by the State of Maine. This infrastructure SIPs to ensure that SIPs
3 of the fiscal year shall be provided at revision addresses the infrastructure provide for implementation,
the time that the Form 10–Q report is requirements of the Clean Air Act (CAA maintenance, and enforcement of the
provided and the report for the last or Act) for the 2012 fine particle (PM2.5) NAAQS, including the 2012 PM2.5
month of Quarter 4 of the fiscal year National Ambient Air Quality Standards NAAQS. On July 6, 2016, Maine
shall be provided at the time that the (NAAQS). EPA is conditionally submitted an infrastructure SIP revision
Form 10–K report is provided; approving the SIP revision for for the 2012 PM2.5 NAAQS, including an
* * * * * infrastructure requirements related to enclosure to address the ‘‘Good
■ 5. Amend § 3050.60 by revising State Boards and Conflicts of Interest. Neighbor’’ (or ‘‘transport’’) provisions of
paragraph (c) to read as follows: The intended effect of this action is to the Act. See CAA section
approve the infrastructure requirements 110(a)(2)(D)(i)(I). On August 13, 2018
§ 3050.60 Miscellaneous reports and of Maine’s air quality management (83 FR 39957), EPA published a Notice
documents. program with respect to this NAAQS of Proposed Rulemaking (NPRM), in
* * * * * into the Maine SIP. This action is being which EPA proposed full approval of all
(c) The items listed in paragraph (b) taken in accordance with the Clean Air elements of Maine’s infrastructure SIP
of this section in electronic form; Act. revision for the 2012 PM2.5 NAAQS,
* * * * * DATES: This rule is effective on October
except for requirements regarding State
[FR Doc. 2018–21249 Filed 9–28–18; 8:45 am]
31, 2018. Boards and Conflicts of Interest, which
BILLING CODE 7710–FW–P we proposed to conditionally approve.
ADDRESSES: EPA has established a
The NPRM includes the rationale for
docket for this action under Docket approval, and EPA will not restate it
Identification No. EPA–R01–OAR– here.
ENVIRONMENTAL PROTECTION 2018–0138. All documents in the docket
AGENCY This rulemaking does not cover three
are listed on the https:// substantive areas that are not integral to
40 CFR Parts 9 and 721 www.regulations.gov website. Although acting on a state’s infrastructure SIP
listed in the index, some information is submission: (i) Existing provisions
[EPA–HQ–OPPT–2018–0567; FRL–9983–14] not publicly available, i.e., CBI or other related to excess emissions during
RIN 2070–AB27 information whose disclosure is periods of start-up, shutdown, or
restricted by statute. Certain other malfunction (SSM) at sources that may
Significant New Use Rules on Certain material, such as copyrighted material, be contrary to the CAA and EPA’s
Chemical Substances is not placed on the internet and will be policies addressing such excess
publicly available only in hard copy emissions; (ii) existing provisions
Correction form. Publicly available docket related to ‘‘director’s variance’’ or
In rule document 2018–19950, materials are available at https:// ‘‘director’s discretion’’ that purport to
appearing on pages 47004 through www.regulations.gov or at the U.S. permit revisions to SIP-approved
47025, in the issue of Monday, Environmental Protection Agency, EPA emissions limits with limited public
September 17, 2018, make the following Region 1 Regional Office, Office of process or without requiring further
correction: Ecosystem Protection, Air Quality approval by EPA, that may be contrary
Planning Unit, 5 Post Office Square— to the CAA; and, (iii) existing provisions
§ 9.1, §§ 721.11124–11125, §§ 721.11130–
11140 [Corrected] Suite 100, Boston, MA. EPA requests for Prevention of Significant
that if at all possible, you contact the Deterioration (PSD) programs that may
■ In the regulatory text for Part 9 and contact listed in the FOR FURTHER
Part 721, beginning on page 47017, be inconsistent with current
INFORMATION CONTACT section to requirements of EPA’s ‘‘Final New
remove ‘‘14;’’ and where it appears after schedule your inspection. The Regional
the section mark symbol (§ ) in Source Review (NSR) Improvement
Office’s official hours of business are Rule,’’ 67 FR 80186 (December 31,
amendatory paragraph instructions 2, 4, Monday through Friday, 8:30 a.m. to
5, and 10–20. 2002), as amended by 72 FR 32526 (June
4:30 p.m., excluding legal holidays. 13, 2007). Instead, EPA has the
[FR Doc. C1–2018–19950 Filed 9–28–18; 8:45 am]
FOR FURTHER INFORMATION CONTACT: authority to address each of these
BILLING CODE 1301–00–D Alison C. Simcox, Air Quality Planning substantive areas separately. A detailed
Unit, U.S. Environmental Protection history, interpretation, and rationale for
Agency, EPA Region 1, 5 Post Office EPA’s approach to infrastructure SIP
ENVIRONMENTAL PROTECTION
Square, Suite 100 (Mail code: OEP05–2), requirements can be found in EPA’s
AGENCY
Boston, MA 02109–3912, telephone May 13, 2014, proposed rule entitled,
40 CFR Part 52 number: (617) 918–1684, email: ‘‘Infrastructure SIP Requirements for the
simcox.alison@epa.gov. 2008 Lead NAAQS’’ in the section,
[EPA–R01–OAR–2018–0138; FRL–9984– ‘‘What is the scope of this rulemaking?’’
SUPPLEMENTARY INFORMATION:
61—Region 1]
Throughout this document whenever See 79 FR 27241 at 27242–45.
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Air Plan Approval; Maine; ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean II. Response to Comments
Infrastructure State Implementation EPA.
During the comment period, EPA
Plan Requirements for the 2012 PM2.5 Table of Contents received one comment, which discusses
NAAQS
I. Background and Purpose subjects outside the scope of this SIP
AGENCY: Environmental Protection II. Response to Comments action, does not explain (or provide a
Agency (EPA). III. Final Action legal basis for) how the proposed action

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Document Created: 2018-09-29 04:26:11
Document Modified: 2018-09-29 04:26:11

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective: October 31, 2018.
Contact		David A. Trissell, General Counsel, at 202-789-6820.
FR Citation		83 FR 49286
CFR Associated		Administrative Practice and Procedure and Reporting and Recordkeeping Requirements