83_FR_52378 83 FR 52178 - Periodic Reporting

83 FR 52178 - Periodic Reporting

POSTAL REGULATORY COMMISSION

Federal Register Volume 83, Issue 200 (October 16, 2018)

Page Range52178-52179
FR Document2018-22457

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

Federal Register, Volume 83 Issue 200 (Tuesday, October 16, 2018)
[Federal Register Volume 83, Number 200 (Tuesday, October 16, 2018)]
[Proposed Rules]
[Pages 52178-52179]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-22457]


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

POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2019-1; Order No. 4849]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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

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

DATES: Comments are due: November 9, 2018.

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

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

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Proposal Eight

[[Page 52179]]

III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On October 5, 2018, the Postal Service filed a petition pursuant to 
39 CFR 3050.11 requesting that the Commission initiate a rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports.\1\ The Petition identifies the proposed analytical 
changes filed in this docket as Proposal Eight.
---------------------------------------------------------------------------

    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Eight), October 5, 2018 (Petition).
---------------------------------------------------------------------------

II. Proposal Eight

    Background. The Postal Service seeks to modify the modeling 
methodology in First-Class Mail and Marketing Mail Letter cost models 
to reflect current operational flows. Petition, Proposal Eight at 1. 
The Postal Service states that Proposal Eight relates to the 
Commission's directive in the FY 2017 Annual Compliance Determination 
Report for the Postal Service to ``provide a plan to move the 
passthrough toward 100 percent'' for USPS Marketing Mail Automation 
Letters Barcoding.\2\ The Postal Service states Proposal Eight ``aligns 
the barcode cost avoidance and the associated passthrough with the 
Commission's directive.'' Id.
---------------------------------------------------------------------------

    \2\ Id. Docket No. ACR2017, Annual Compliance Determination 
Report, March 29, 2018, at 26.
---------------------------------------------------------------------------

    The Postal Service states that it developed its current mail 
processing letter cost models when cancellation equipment had limited 
functionality. Id. at 2. The outgoing primary scheme could not isolate 
mail for all automated area distribution centers (AADCs), and mail for 
low volume AADCs flowed to the outgoing secondary scheme. Id.
    The Postal Service states that due to advances in Optical Character 
Recognition (OCR) technology, its Advanced Facer Canceller System 
(AFCS) is now able to read addresses and isolate locally-processed mail 
from mail destinating in the service territory of other processing 
facilities. Id. This capability eliminated the need for local 
separations on outgoing primary schemes, or the processing of pre-
barcoded mail on the outgoing secondary scheme. Id. The Postal Service 
states the result is an increased quantity of mail processed on the 
outgoing primary scheme. Id. at 2-3.
    Proposal. The Postal Service proposes three operational and 
methodological changes: (1) Modification of models to reflect current 
operational flows; (2) correction of the exclusion of mechanical 
rejects from the Input Sub System (ISS); and (3) removal of the 
conflation of differential flows between Output Sub System (OSS) 
operations and automation barcode sortation (BCS) operations in the 
Marketing Mail Letters cost model. Id. at 3.
    The Postal Service states that modification 1 aligns the current 
operational flows of automation pre-barcoded Mixed AADC (MAADC) mail 
with modeled automation mail. Id. at 4. The modification changes the 
inflow of 10,000 pieces of modeled mail from the outgoing secondary 
entry point. Id. The Postal Service states that the ``modification 
directly impacts only the Automation MAADC Presort Letters and Cards 
categories.'' Id.
    The Postal Service states that the current letter models do not 
account for mechanical rejects that flow to manual operations. Id. The 
Postal Service states that the delivery BCS (DBCS) Input Output Sub 
System (DIOSS) reject rate is composed of the OSS rate of rejects 
flowing to manual operations. Id. Modification 2 ``corrects the DIOSS 
operations' treatment of rejects to that of traditional OSS/ISS 
operations for treatment of pieces flowing to manual operations and to 
OSS operations.'' Id.
    The Postal Service suggests that the current Marketing Mail Letters 
cost model, calculating the barcode cost avoidance as the difference 
between modeled (Non-Automation) Machinable MAADC letters and 
Automation MAADC letters, ``conflates the value of the barcode with 
intrinsic differences between non-barcoded and automation mail.'' Id. 
at 5. Modification 3 corrects the model for machinable MAADC mail by 
using the same down flow densities as automation MAADC mail, ``thereby 
accurately estimating the value of a barcode when used as a 
benchmark.'' Id. The Postal Service states that this modification 
applies only to Marketing Mail Letters. Id. at 6.
    Rationale and impact. The Postal Service states that it intends for 
the proposal to modify the letter processing models to reflect 
``current operational reality.'' Id. at 1. The Postal Service states 
that the proposal would increase the barcode cost avoidance of 
Marketing Mail Automation MAADC letters from $0.001 to $0.006, while 
reducing the passthrough from 1300 percent to 217 percent. Id. at 6. 
The Postal Service provides the change in mail processing unit costs 
for Marketing Mail Letters and First-Class Mail Letters and Cards. Id. 
at 7-8.

III. Notice and Comment

    The Commission establishes Docket No. RM2019-1 for consideration of 
matters raised by the Petition. More information on the Petition may be 
accessed via the Commission's website at http://www.prc.gov. Interested 
persons may submit comments on the Petition and Proposal Eight no later 
than November 9, 2018. Pursuant to 39 U.S.C. 505, the Commission 
designates Katalin K. Clendenin as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2019-1 for consideration 
of the matters raised by the Petition of the United States Postal 
Service for the Initiation of a Proceeding to Consider Proposed Changes 
in Analytical Principles (Proposal Eight), filed October 5, 2018.
    2. Comments by interested persons in this proceeding are due no 
later than November 9, 2018.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Katalin K. 
Clendenin to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2018-22457 Filed 10-15-18; 8:45 am]
 BILLING CODE 7710-FW-P



                                                52178                 Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Proposed Rules

                                                Office also seeks input on any model                      8. Please describe specific steps that                 Depending on the feedback received,
                                                methods of search. Specifically:                        should constitute a reasonable search                  the Office will either issue an interim
                                                   1. What would constitute a reasonable                for a recording on an identified service.              rule, or a notice of proposed rulemaking
                                                search of the Office’s database of Pre-                 Should the steps be service-specific or                with further request for comment.
                                                1972 Schedules, which will index                        would a single list of steps be adequate                 Dated: October 11, 2018.
                                                information including the name of the                   for any identified source? Is the
                                                                                                                                                               Regan A. Smith,
                                                rights owner, title, and featured artist for            description of a qualifying search
                                                                                                                                                               General Counsel and Associate Register of
                                                each sound recording filed on a                         described by the 2008 bill referenced
                                                                                                                                                               Copyrights.
                                                schedule?                                               above useful in defining whether a user
                                                                                                                                                               [FR Doc. 2018–22516 Filed 10–15–18; 8:45 am]
                                                   2. Please suggest specific ‘‘services                has conducted a reasonable search to
                                                                                                        determine whether a work is being                      BILLING CODE 1410–30–P
                                                offering a comprehensive set of sound
                                                recordings for sale or streaming’’ that                 commercially exploited?
                                                users should be asked to reasonably                     B. Filing of Notices of Pre-1972
                                                search before qualifying for the safe                                                                          POSTAL REGULATORY COMMISSION
                                                                                                        Noncommercial Use and Pre-1972 Opt-
                                                harbor.                                                 Out Notices                                            39 CFR Part 3050
                                                   3. Which criteria should be used to
                                                identify music streaming services that                     The Office also seeks written                       [Docket No. RM2019–1; Order No. 4849]
                                                should be searched, now and in the                      comments on how it should ‘‘establish
                                                future? For example, one publication                    the form, content, and procedures’’ for                Periodic Reporting
                                                recently analyzed search requests for                   users to file Notices of Pre-1972
                                                                                                        Noncommercial Use and rights owners                    AGENCY:   Postal Regulatory Commission.
                                                music providers, and determined that
                                                                                                        to file Pre-1972 Opt-Out Notices.                      ACTION:   Notice of proposed rulemaking.
                                                the most frequently searched services
                                                were YouTube Music, Amazon Music,                       Specifically:
                                                                                                           1. Should the Office provide                        SUMMARY:   The Commission is
                                                Apple Music, Pandora, and Spotify.21 Is                                                                        acknowledging a recent filing requesting
                                                this a reasonable list, or should the                   guidelines as to what constitutes a
                                                                                                        ‘‘noncommercial’’ use, and if so, what?                the Commission initiate a rulemaking
                                                Office consider different and/or                                                                               proceeding to consider changes to
                                                additional analytics, such as catalog                   In answering, consider that ‘‘merely
                                                                                                        recovering costs of production and                     analytical principles relating to periodic
                                                size, number of listeners, or inclusion                                                                        reports (Proposal Eight). This document
                                                into indexes such as Nielsen Music? To                  distribution of a sound recording
                                                                                                        resulting from a use otherwise permitted               informs the public of the filing, invites
                                                that end, Billboard recently added the                                                                         public comment, and takes other
                                                iHeartRadio subscription stream to                      under this subsection does not itself
                                                                                                        necessarily constitute a commercial use                administrative steps.
                                                various streaming-inclusive charts,22
                                                                                                        of the sound recording,’’ and ‘‘the fact               DATES: Comments are due: November 9,
                                                and other services, such as SiriusXM,
                                                                                                        that a person engaging in the use of a                 2018.
                                                Deezer, Bandcamp, SoundCloud, and
                                                Tidal provide music to millions of                      sound recording also engages in                        ADDRESSES: Submit comments
                                                users.                                                  commercial activities does not itself                  electronically via the Commission’s
                                                   4. Is it reasonable to expect a user’s               necessarily render the use                             Filing Online system at http://
                                                search to encompass music distribution                  commercial.’’ 23 For example, should                   www.prc.gov. Those who cannot submit
                                                services, such as CD Baby, TuneCore, or                 the online use of a work where the user                comments electronically should contact
                                                The Orchard?                                            receives website advertising revenue be                the person identified in the FOR FURTHER
                                                   5. Are there other sources to which                  considered ‘‘commercial’’? Should a                    INFORMATION CONTACT section by
                                                the Office should look that may                         prospective user be asked to disclose                  telephone for advice on filing
                                                demonstrate commercialization of                        whether they are an individual, or                     alternatives.
                                                physical copies of recordings, e.g., vinyl              whether they will operate as a
                                                                                                                                                               FOR FURTHER INFORMATION CONTACT:
                                                records or compact discs?                               commercial or noncommercial entity?
                                                                                                           2. To what extent should a user be                  David A. Trissell, General Counsel, at
                                                   6. Are there other specialized services                                                                     202–789–6820.
                                                                                                        required to specify the nature of the use,
                                                or salesfronts regarding particular                                                                            SUPPLEMENTARY INFORMATION:
                                                                                                        such as the expected audience, duration
                                                genres or eras within the category of
                                                                                                        of the use, and whether it will be online              Table of Contents
                                                Pre-1972 Sound Recordings that should
                                                                                                        or limited to a particular geographic
                                                be considered by the Office?                                                                                   I. Introduction
                                                                                                        area?
                                                   7. How many sources should a user be                    3. How should the user be required to               II. Proposal Eight
                                                required to search before qualifying for                certify or describe the steps taken for a
                                                the safe harbor? In responding, please                  search to constitute a ‘‘good faith,                   Instructions for Completing and Submitting
                                                consider that the Office must                                                                                  Schedules of Pre-1972 Sound Recordings, U.S.
                                                                                                        reasonable search’’? How detailed                      Copyright Office, https://copyright.gov/music-
                                                promulgate a ‘‘reasonable’’ list of steps,              should any description be? In                          modernization/pre1972-soundrecordings/
                                                but in a way that does not overlook                     responding, the Office encourages                      schedulefiling-instructions.html (instructions on
                                                commercialization of Pre-1972 sound                     commenters to consider other forms and                 filing Pre-1972 Schedules); Requirements and
                                                recordings.                                                                                                    Instructions for Completing and Submitting Notices
                                                                                                        procedures offered by the Office, which                of Contact Information For Transmitting Entities
                                                                                                        reflect operational considerations by the              Publicly Performing Pre-1972 Sound Recordings,
                                                  21 Daniel Sanchez, We Asked a Search Analytics
                                                                                                        Office, as well as the resources                       U.S. Copyright Office, https://copyright.gov/music-
amozie on DSK3GDR082PROD with PROPOSALS1




                                                Company to Tell Us the Most Popular Music                                                                      modernization/pre1972-soundrecordings/contact
                                                Services, Digital Music News (June 11, 2018),           described above.24                                     information-instructions.html (instructions on filing
                                                https://www.digitalmusicnews.com/2018/06/11/                                                                   notices of contact information for transmitting
                                                most-popular-music-services/.                             23 17U.S.C. 1401(C)(2).                              entities publicly performing Pre-1972 Sound
                                                  22 Billboard Staff, Pandora & iHeartRadio               24 See,
                                                                                                                e.g., Document Recordation: Completing         Recordings); Modernizing Copyright Recordation,
                                                Subscription Streams to Be Added to Billboard           and Submitting Declarations of Ownership in            82 FR 52213 (Nov. 13, 2017) (issuing interim rule
                                                Charts, Billboard (June 25, 2018), https://             Musical Works, U.S. Copyright Office, https://         amending regulations governing recordation of
                                                www.billboard.com/articles/news/8462711/                www.copyright.gov/recordation/domw/#                   transfers of copyright ownership, other documents
                                                pandora-iheartradio-subscription-streams-added-         requirements (instructions on filing Declarations of   pertaining to a copyright, and notices of
                                                billboard-charts.                                       Ownership in Musical Works); Requirements and          termination).



                                           VerDate Sep<11>2014   17:27 Oct 15, 2018   Jkt 247001   PO 00000   Frm 00008   Fmt 4702   Sfmt 4702   E:\FR\FM\16OCP1.SGM   16OCP1


                                                                       Federal Register / Vol. 83, No. 200 / Tuesday, October 16, 2018 / Proposed Rules                                              52179

                                                III. Notice and Comment                                 System (ISS); and (3) removal of the                  information on the Petition may be
                                                IV. Ordering Paragraphs                                 conflation of differential flows between              accessed via the Commission’s website
                                                I. Introduction                                         Output Sub System (OSS) operations                    at http://www.prc.gov. Interested
                                                                                                        and automation barcode sortation (BCS)                persons may submit comments on the
                                                   On October 5, 2018, the Postal Service               operations in the Marketing Mail Letters              Petition and Proposal Eight no later than
                                                filed a petition pursuant to 39 CFR                     cost model. Id. at 3.                                 November 9, 2018. Pursuant to 39
                                                3050.11 requesting that the Commission                     The Postal Service states that                     U.S.C. 505, the Commission designates
                                                initiate a rulemaking proceeding to                     modification 1 aligns the current                     Katalin K. Clendenin as an officer of the
                                                consider changes to analytical                          operational flows of automation pre-                  Commission (Public Representative) to
                                                principles relating to periodic reports.1               barcoded Mixed AADC (MAADC) mail                      represent the interests of the general
                                                The Petition identifies the proposed                    with modeled automation mail. Id. at 4.               public in this proceeding.
                                                analytical changes filed in this docket as              The modification changes the inflow of
                                                Proposal Eight.                                         10,000 pieces of modeled mail from the                IV. Ordering Paragraphs
                                                II. Proposal Eight                                      outgoing secondary entry point. Id. The                 It is ordered:
                                                                                                        Postal Service states that the                          1. The Commission establishes Docket
                                                   Background. The Postal Service seeks                 ‘‘modification directly impacts only the              No. RM2019–1 for consideration of the
                                                to modify the modeling methodology in                   Automation MAADC Presort Letters and                  matters raised by the Petition of the
                                                First-Class Mail and Marketing Mail                     Cards categories.’’ Id.                               United States Postal Service for the
                                                Letter cost models to reflect current                      The Postal Service states that the                 Initiation of a Proceeding to Consider
                                                operational flows. Petition, Proposal                   current letter models do not account for              Proposed Changes in Analytical
                                                Eight at 1. The Postal Service states that              mechanical rejects that flow to manual                Principles (Proposal Eight), filed
                                                Proposal Eight relates to the                           operations. Id. The Postal Service states             October 5, 2018.
                                                Commission’s directive in the FY 2017                   that the delivery BCS (DBCS) Input                      2. Comments by interested persons in
                                                Annual Compliance Determination                         Output Sub System (DIOSS) reject rate                 this proceeding are due no later than
                                                Report for the Postal Service to ‘‘provide              is composed of the OSS rate of rejects                November 9, 2018.
                                                a plan to move the passthrough toward                   flowing to manual operations. Id.                       3. Pursuant to 39 U.S.C. 505, the
                                                100 percent’’ for USPS Marketing Mail                   Modification 2 ‘‘corrects the DIOSS                   Commission appoints Katalin K.
                                                Automation Letters Barcoding.2 The                      operations’ treatment of rejects to that of           Clendenin to serve as an officer of the
                                                Postal Service states Proposal Eight                    traditional OSS/ISS operations for                    Commission (Public Representative) to
                                                ‘‘aligns the barcode cost avoidance and                 treatment of pieces flowing to manual                 represent the interests of the general
                                                the associated passthrough with the                     operations and to OSS operations.’’ Id.               public in this docket.
                                                Commission’s directive.’’ Id.                              The Postal Service suggests that the                 4. The Secretary shall arrange for
                                                   The Postal Service states that it                    current Marketing Mail Letters cost                   publication of this Order in the Federal
                                                developed its current mail processing                   model, calculating the barcode cost                   Register.
                                                letter cost models when cancellation                    avoidance as the difference between                     By the Commission.
                                                equipment had limited functionality. Id.                modeled (Non-Automation) Machinable
                                                at 2. The outgoing primary scheme                                                                             Stacy L. Ruble,
                                                                                                        MAADC letters and Automation
                                                could not isolate mail for all automated                MAADC letters, ‘‘conflates the value of               Secretary.
                                                area distribution centers (AADCs), and                  the barcode with intrinsic differences                [FR Doc. 2018–22457 Filed 10–15–18; 8:45 am]
                                                mail for low volume AADCs flowed to                     between non-barcoded and automation                   BILLING CODE 7710–FW–P
                                                the outgoing secondary scheme. Id.                      mail.’’ Id. at 5. Modification 3 corrects
                                                   The Postal Service states that due to                the model for machinable MAADC mail
                                                advances in Optical Character                           by using the same down flow densities                 ENVIRONMENTAL PROTECTION
                                                Recognition (OCR) technology, its                       as automation MAADC mail, ‘‘thereby                   AGENCY
                                                Advanced Facer Canceller System                         accurately estimating the value of a
                                                (AFCS) is now able to read addresses                    barcode when used as a benchmark.’’ Id.               40 CFR Part 721
                                                and isolate locally-processed mail from                 The Postal Service states that this                   [EPA–HQ–OPPT–2017–0575; FRL–9984–93]
                                                mail destinating in the service territory               modification applies only to Marketing
                                                of other processing facilities. Id. This                                                                      RIN 2070–AB27
                                                                                                        Mail Letters. Id. at 6.
                                                capability eliminated the need for local                   Rationale and impact. The Postal
                                                separations on outgoing primary                                                                               Significant New Use Rules on Certain
                                                                                                        Service states that it intends for the
                                                schemes, or the processing of pre-                                                                            Chemical Substances
                                                                                                        proposal to modify the letter processing
                                                barcoded mail on the outgoing                           models to reflect ‘‘current operational               AGENCY:  Environmental Protection
                                                secondary scheme. Id. The Postal                        reality.’’ Id. at 1. The Postal Service               Agency (EPA).
                                                Service states the result is an increased               states that the proposal would increase               ACTION: Proposed rule.
                                                quantity of mail processed on the                       the barcode cost avoidance of Marketing
                                                outgoing primary scheme. Id. at 2–3.                    Mail Automation MAADC letters from                    SUMMARY:   EPA is proposing significant
                                                   Proposal. The Postal Service proposes                $0.001 to $0.006, while reducing the                  new use rules (SNURs) under the Toxic
                                                three operational and methodological                    passthrough from 1300 percent to 217                  Substances Control Act (TSCA) for 13
                                                changes: (1) Modification of models to                  percent. Id. at 6. The Postal Service                 chemical substances which are the
                                                reflect current operational flows; (2)                  provides the change in mail processing                subject of premanufacture notices
amozie on DSK3GDR082PROD with PROPOSALS1




                                                correction of the exclusion of                          unit costs for Marketing Mail Letters                 (PMNs). This action would require
                                                mechanical rejects from the Input Sub                   and First-Class Mail Letters and Cards.               persons to notify EPA at least 90 days
                                                                                                        Id. at 7–8.                                           before commencing manufacture
                                                  1 Petition of the United States Postal Service for
                                                                                                                                                              (defined by statute to include import) or
                                                the Initiation of a Proceeding to Consider Proposed     III. Notice and Comment                               processing of any of these 13 chemical
                                                Changes in Analytical Principles (Proposal Eight),
                                                October 5, 2018 (Petition).                                The Commission establishes Docket                  substances for an activity that is
                                                  2 Id. Docket No. ACR2017, Annual Compliance           No. RM2019–1 for consideration of                     designated as a significant new use by
                                                Determination Report, March 29, 2018, at 26.            matters raised by the Petition. More                  this proposed rule. If this proposed rule


                                           VerDate Sep<11>2014   17:27 Oct 15, 2018   Jkt 247001   PO 00000   Frm 00009   Fmt 4702   Sfmt 4702   E:\FR\FM\16OCP1.SGM   16OCP1



Document Created: 2018-10-15 23:42:10
Document Modified: 2018-10-15 23:42:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesComments are due: November 9, 2018.
ContactDavid A. Trissell, General Counsel, at 202-789-6820.
FR Citation83 FR 52178 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR