[Federal Register Volume 79, Number 148 (Friday, August 1, 2014)]
[Rules and Regulations]
[Pages 44700-44701]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-18223]


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POSTAL SERVICE

39 CFR Part 121


Revised Service Standards for Market-Dominant Mail Products; 
Designation of Implementation Date

AGENCY: Postal ServiceTM.

ACTION: Final rule; designation of implementation date.

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SUMMARY: This document identifies the implementation date for the 
revised service standards for market-dominant mail products associated 
with the second phase of the Network Rationalization initiative, and 
makes conforming changes to the applicable regulations.

DATES: Effective Date: August 1, 2014.

FOR FURTHER INFORMATION CONTACT: Dave Williams, Network Operations, at 
202-268-4305.

SUPPLEMENTARY INFORMATION: 
    On September 21, 2011, the Postal Service published an advance 
notice of proposed rulemaking (the Advance Notice) in the Federal 
Register to solicit public comment on a conceptual proposal to revise 
service standards for market-dominant products.\1\ After considering 
comments received in response to the Advance Notice, the Postal Service 
decided to develop the concept into a concrete proposal, identified as 
Network Rationalization. The basic logic of Network Rationalization is 
that falling mail volumes and the resultant excess capacity in the 
Postal Service's mail processing network necessitate a major 
consolidation of the network, and this task in turn is contingent on 
revisions to service standards, particularly the overnight standard for 
First-Class Mail.
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    \1\ Proposal to Revise Service Standards for First-Class Mail, 
Periodicals, and Standard Mail, 76 FR 58433 (September 21, 2011).
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    On December 5, 2011, the Postal Service submitted a request to the 
Postal Regulatory Commission (PRC) for an advisory opinion on the 
service changes associated with Network Rationalization, in accordance 
with 39 U.S.C. 3661(b).\2\ On December 15, 2011, the Postal Service 
published proposed revisions to its market-dominant service standards 
in the Federal Register and sought public comment (the Proposed 
Rulemaking).\3\ The comment period for the Proposed Rulemaking closed 
on February 13, 2012. The final rule was published on May 25, 2012.\4\
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    \2\ PRC Docket No. N2012-1, Request of the United States Postal 
Service for an Advisory Opinion on Changes in the Nature of Postal 
Services (December 5, 2011). Documents pertaining to the Request are 
available at the PRC Web site, http://www.prc.gov.
    \3\ Service Standards for Market-Dominant Mail Products, 76 FR 
77942 (December 15, 2011).
    \4\ Revised Service Standards for Market-Dominant Mail Products, 
77 FR 31190 (May 25, 2012).
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    Having considered public input and the results of its market 
research, the Postal Service decided to implement Network 
Rationalization in a phased manner. The service standard changes

[[Page 44701]]

associated with the first phase of Network Rationalization became 
effective on July 1, 2012.\5\ In a Federal Register notice dated 
January 24, 2014, the Postal Service announced its decision to postpone 
implementation of the second phase of Network Rationalization, and to 
identify the implementation date for the second phase at least 90 days 
before it takes effect.\6\ This document identifies the implementation 
date for the second phase of Network Rationalization, and the 
corresponding service standard changes.
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    \5\ Id.
    \6\ Revised Service Standards for Market-Dominant Mail Products; 
Postponement of Implementation Date, 79 FR 4079 (January 24, 2014).
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    The Postal Service's market-dominant service standards are 
contained in 39 CFR part 121. This document revises the service 
standards by identifying the implementation date for the service 
standards associated with the second phase of Network Rationalization, 
and by modifying 39 CFR 121.1(b)(2) to clarify that the 2-day service 
standard for First-Class Mail includes intra-SCF single piece First-
Class Mail.\7\ The revision concerning the second phase implementation 
date is applied by replacing ``the effective date identified by the 
Postal Service in a future Federal Register document'' with ``January 
5, 2015'' each place where ``the effective date identified by the 
Postal Service in a future Federal Register document'' appears in the 
current version of 39 CFR part 121, and in Appendix A to that part. The 
2-day service standard for First-Class Mail is clarified through the 
addition of a reference to ``intra-SCF single piece domestic First-
Class Mail properly accepted before the day-zer0-CET'' in paragraph 
121.1(b)(2). In addition, conforming non-substantive edits were made.
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    \7\ Application of the two-day service standard to intra-SCF 
single piece domestic First-Class Mail was described in previous 
Federal Register notices. See Proposal to Revise Service Standards 
for First-Class Mail, Periodicals, and Standard Mail, 76 FR 58433 
(September 21, 2011); Service Standards for Market-Dominant Mail 
Products, 76 FR 77942 (December 15, 2011).
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List of Subjects in 39 CFR Part 121

    Administrative practice and procedure, Postal Service.

    Accordingly, for the reasons stated in the preamble, the Postal 
Service adopts the following revisions to 39 CFR part 121:

PART 121--SERVICE STANDARDS FOR MARKET DOMINANT MAIL PRODUCTS

0
1. The authority citation for 39 CFR part 121 continues to read as 
follows:

    Authority:  39 U.S.C. 101, 401, 403, 404, 1001, 3691.

0
2. Section 121.1 is amended by revising paragraphs (a) and (b) to read 
as follows:


Sec.  121.1  First-Class Mail.

    (a)(1) Until January 5, 2015, a 1-day (overnight) service standard 
is applied to intra-Sectional Center Facility (SCF) domestic First-
Class Mail[supreg] pieces properly accepted before the day-zero 
Critical Entry Time (CET), except for mail between Puerto Rico and the 
U.S. Virgin Islands, mail between American Samoa and Hawaii, and mail 
destined to the following 3-digit ZIP Code areas in Alaska (or 
designated portions thereof): 995 (5-digit ZIP Codes 99540 through 
99599), 996, 997, 998, and 999.
    (2) On and after January 5, 2015, a 1-day (overnight) service 
standard is applied to intra-SCF domestic Presort First-Class Mail 
pieces properly accepted at the SCF before the day-zero CET, except for 
mail between Puerto Rico and the U.S. Virgin Islands, and mail destined 
to American Samoa and the following 3-digit ZIP Code areas in Alaska 
(or designated portions thereof): 995 (5-digit ZIP Codes 99540 through 
99599), 996, 997, 998, and 999.
    (b)(1) Until January 5, 2015, a 2-day service standard is applied 
to inter-SCF domestic First-Class Mail pieces properly accepted before 
the day-zero CET if the drive time between the origin Processing & 
Distribution Center or Facility (P&DC/F) and destination Area 
Distribution Center (ADC) is 6 hours or less; or if the origin and 
destination are separately in Puerto Rico and the U.S. Virgin Islands; 
or if the origin or destination is in American Samoa or one of the 
following 3-digit ZIP Code areas in Alaska (or designated portions 
thereof): 995 (5-digit ZIP Codes 99540 through 99599), 996, 997, 998, 
and 999.
    (2) On and after January 5, 2015, a 2-day service standard is 
applied to intra-SCF single piece domestic First-Class Mail properly 
accepted before the day-zero CET, inter-SCF domestic First-Class Mail 
pieces properly accepted before the day-zero CET if the drive time 
between the origin P&DC/F and destination SCF is 6 hours or less, 
Presort First-Class Mail properly accepted before the day-zero CET with 
an origin and destination that are separately in Puerto Rico and the 
U.S. Virgin Islands, and intra-SCF Presort First-Class Mail properly 
accepted before the day-zero CET with an origin or destination that is 
in American Samoa or one of the following 3-digit ZIP Code areas in 
Alaska (or designated portions thereof): 995 (5-digit ZIP Codes 99540 
through 99599), 996, 997, 998, and 999.
* * * * *
0
3. Section 121.2 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  121.2  Periodicals.

    (a) End-to-End.
    (1)(i) Until January 5, 2015, a 2- to 4-day service standard is 
applied to Periodicals pieces properly accepted before the day-zero 
Critical Entry Time (CET) and merged with First-Class Mail pieces for 
surface transportation (as per the Domestic Mail Manual (DMM)), with 
the standard specifically equaling the sum of 1 day plus the applicable 
First-Class Mail service standard;
    (ii) On and after January 5, 2015, a 3- to 4-day service standard 
is applied to Periodicals pieces properly accepted before the day-zero 
CET and merged with First-Class Mail pieces for surface transportation 
(as per the DMM), with the standard specifically equaling the sum of 1 
day plus the applicable First-Class Mail service standard.
* * * * *
0
4. Appendix A to Part 121 is amended by revising the introductory text 
of Tables 1 through 4 to read as follows:

Appendix A to Part 121--Tables Depicting Service Standard Day Ranges

* * * * *
    Table 1. Prior to January 5, 2015, end-to-end service standard 
day ranges for mail originating and destinating within the 
contiguous 48 states and the District of Columbia.
* * * * *
    Table 2. On and after January 5, 2015, end-to-end service 
standard day ranges for mail originating and destinating within the 
contiguous 48 states and the District of Columbia.
* * * * *
    Table 3. Prior to January 5, 2015, end-to-end service standard 
day ranges for mail originating and/or destinating in non-contiguous 
states and territories.
* * * * *
    Table 4. On and after January 5, 2015, end-to-end service 
standard day ranges for mail originating and/or destinating in non-
contiguous states and territories.
* * * * *

Stanley F. Mires,
Attorney, Federal Requirements.
[FR Doc. 2014-18223 Filed 7-31-14; 8:45 am]
BILLING CODE 7710-12-P