[Federal Register Volume 79, Number 207 (Monday, October 27, 2014)]
[Proposed Rules]
[Pages 63880-63882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-25403]



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POSTAL SERVICE

39 CFR Part 241


Relocating Retail Services; Adding New Retail Service Facilities

AGENCY: Postal Service\TM\.

ACTION: Proposed rule.

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SUMMARY: The Postal Service proposes to revise its current rules 
concerning the expansion, relocation, and construction of Post 
Offices\TM\ to clarify its procedures and to require more information 
about certain types of projects to be provided earlier in the planning 
phase. Under the revised rule, the Postal Service will notify 
communities and officials, and solicit and consider their input, 
regarding proposals to relocate retail services or add a new retail 
services facility. The revised rule will also require the Postal 
Service to provide information about the anticipated new location for 
relocated services, or the new retail services facility, when the 
Postal Service first gives notice of the proposal.

DATES: Comments must be received by November 26, 2014.

ADDRESSES: Please submit written comments by email to [email protected], 
with the subject heading ``241.4 Rulemaking,'' or by mail to Angie 
Mitchell, U.S. Postal Service, 475 L'Enfant Plaza, SW., Room 6611, 
Washington, DC 20260.

FOR FURTHER INFORMATION CONTACT: Richard Hancock, Real Estate 
Specialist, U.S. Postal Service, at [email protected] or 919-
420-5284.

SUPPLEMENTARY INFORMATION: 

Background

    The Postal Service proposes to revise 39 CFR 241.4 to clarify its 
procedures and to require the Postal Service to provide more 
information about certain types of projects earlier in the planning 
phase. The current rule prescribes procedures by which the Postal 
Service notifies communities and local officials of certain types of 
proposed facility projects, and solicits and considers the community's 
input before making a final decision to expand an existing retail 
services facility, relocate retail services, or construct a new 
building to provide retail services. Under the proposed rule, the 
Postal Service will continue to notify communities and officials, and 
to solicit and consider input regarding proposals to relocate retail 
services or to add a new retail services facility. Additionally, 
however, the revised rule will enhance transparency by requiring the 
Postal Service to provide information about the anticipated new 
location for the relocated services, or for the new retail services 
facility, when the Postal Service first engages with the community and 
officials concerning the proposal.
    When the Postal Service published the current rule in 1998 (63 FR 
46656), the Postal Service was adding space to its facilities network 
to serve an expanding customer base, often in suburban areas, and to 
support a growing volume of mail. Exemplifying the focus at that time 
on adding space, the current rule calls for the Postal Service to 
emphasize that in meeting a need for increased space, the first 
priority is to expand the existing facility, the second priority is to 
find an existing building in the same area as the current facility, and 
the third option is to build on a new site that will be either owned or 
leased. 39 CFR 241.4(c)(1)(ii).
    Today, the Postal Service focuses on innovating to adapt to a 
dynamic marketplace that has changed dramatically since the current 
rule's publication. For many years now, Postal Service customers have 
been decreasing their demand for the Postal Service's primary service 
category, First-Class Mail[supreg], turning instead to electronic 
communications for correspondence, bill deliveries and payments, and 
other communications and transactions. Demand for First-Class Mail 
service has also declined dramatically due to the ongoing effects of 
the Great Recession. Postal Service operations are self-funding and not 
supported by tax dollars. To be self-sustaining, and meet its universal 
service obligation, the Postal Service must provide adequate and 
affordable postal services efficiently and economically. The Postal 
Service is therefore responding to the decreasing demand for its First-
Class Mail services and to the corresponding loss of revenue by 
optimizing its facilities network, often by relocating out of oversized 
spaces into right-sized spaces. Through experience with applying the 
current rule to relocations, the Postal Service determined that it 
could improve the rule by clarifying its terms and applicability, by 
focusing the rule on the types of projects that are most likely to be 
sensitive to a community, and by increasing transparency through 
providing more information about those projects earlier in the planning 
phase. Accordingly, the Postal Service proposes to revise the rule in 
several ways.

Proposed Modifications

    Although the current rule applies only to ``customer service 
facilities,'' the rule does not define ``customer service facility.'' 
The revised rule adds definitions to clarify its terms and 
applicability, including a definition for ``retail service facility,'' 
a term the revised rule uses instead of ``customer service facility'' 
to define the type of facility to which the rule applies.
    With regard to relocations of retail services, the current rule 
calls for the Postal Service to conduct community outreach in a two-
step process. First, the Postal Service solicits and considers input 
from the community and local officials on whether to relocate. Second, 
if the Postal Service decides to pursue the relocation, then the Postal 
Service solicits and considers input on selection of the relocation 
site. The Postal Service believes it can enhance its community outreach 
by providing information about the planned relocation and the 
anticipated relocation site at the same time when it first engages with 
the community and officials regarding a proposed relocation. 
Accordingly, when the Postal Service meets with the community to 
discuss the proposed relocation, the revised rule specifically calls 
for the Postal Service to also identify the site or area to which the 
Postal Service anticipates relocating the retail services. Further, 
while the current rule allows appeals of the relocation decision, and 
allows the community and officials to comment on the proposed new 
sites, it does not provide an avenue to appeal the site selection. By 
consolidating the discussions of relocation and site selection, the 
revised rule bolsters the community input process by providing a 
process to appeal both the relocation and site selection proposals and 
permits the Postal Service to deliver its final decision in a timelier 
manner.
    The current rule also requires soliciting and considering community 
input for construction of a new building for a retail service facility, 
and for expansion of an existing retail service facility. However, the 
current rule does not require community input when the Postal Service 
leases space for a new retail services facility, although in practice 
the Postal Service commonly solicits and considers input in those 
situations. Based on experience, the Postal Service believes 
communities often are concerned about a proposal to add a retail 
services facility, regardless of whether the Postal Service plans to 
build a new building or to lease space. In contrast to adding a retail 
services facility or relocating retail services, an expansion of a 
retail service facility does not raise the same concerns because the 
retail services remain in place. Further, as the Postal Service

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adapts to a changing marketplace, it forecasts, at most, an 
increasingly rare need to expand existing retail services sites in a 
manner significantly affecting surrounding communities. Conversely, it 
does anticipate leasing new sites as needed to provide retail services 
in additional facilities. Accordingly, the revised rule will not apply 
to ``expansions,'' but will broaden and revise the ``new construction'' 
category to require community input whenever the Postal Service adds a 
new retail service facility to a community, whether as a new building 
or as a leased space. Therefore, the revised rule will expand 
opportunities for community input for those projects.
    When community members or officials appeal a decision, the current 
rule calls for the ``Vice President, Facilities'' to determine those 
appeals. Although the Vice President, Facilities is not an approving 
official for initial project decisions to which the current rule 
applies, the Postal Service decided to revise the rule to avoid 
concerns that the same official is approving an initial project and 
determining appeals for the project. Therefore, the revised rule 
permits the Postal Service to designate an official other than the Vice 
President, Facilities to determine such appeals.
    The current rule excuses community input for temporary and 
emergency relocations, but limits such relocations to 180 days without 
distinguishing between temporary and emergency relocations. While the 
180-day limit may be appropriate for temporary relocations, it is 
unnecessarily arbitrary for emergency relocations. The revised rule 
distinguishes temporary additions and relocations (e.g., for holidays, 
or special events) from emergency relocations (e.g., due to 
earthquakes, fire, or lease terminations). It retains the 180-day limit 
for temporary additions and relocations, while substituting a 
requirement for community input ``as soon as prudent'' following 
emergency relocations. The revised rule also adds a process for 
soliciting and considering community input following an emergency 
relocation.
    Several years after the Postal Service published the current rule, 
Congress enacted the Postal Accountability and Enhancement Act (PAEA) 
(Pub. L. 109-435,120 Stat 3198). As added by PAEA, 39 U.S.C. 409(f) 
sets forth requirements for the Postal Service when it constructs or 
alters a building, including requirements to consult with local 
officials concerning local zoning and building code requirements. Those 
requirements overlap with the current rule's requirements at 39 CFR 
241.4(f), but the two sets of requirements are not entirely consistent. 
Because the subsequently enacted PAEA applies to all Postal Service 
projects, not just projects subject to the current rule, the revised 
rule will eliminate 39 CFR 241.4(f) to allow the Postal Service and 
local communities to look to a single set of requirements, as set forth 
in PAEA, for all Postal Service projects.
    Last, the revised rule clarifies in 39 CFR 241.4(d) that it does 
not add to, reduce, or otherwise modify the Postal Service's legal 
obligations or policies for compliance with other laws and regulations. 
This clarification preserves and strengthens the original intent of the 
current rule.

List of Subjects in 39 CFR Part 241

    Organization and functions (Government agencies), Retail service 
facilities.

    Although exempted by 39 U.S.C. 410(a) from the advance notice 
requirements of the Administrative Procedure Act regarding proposed 
rulemaking (5 U.S.C. 553), the Postal Service invites public comment at 
the above address and will consider any comments received before 
issuing a final rule.
    Accordingly, the Postal Service proposes to revise 39 CFR 241.4 as 
set forth below.

PART 241--ESTABLISHMENT CLASSIFICATION, AND DISCONTINUANCE

0
1. The authority citation for 39 CFR part 241 continues to read as 
follows:

    Authority:  39 U.S.C. 101, 401, 403, 404, 410, 1001.

0
2. Revise Sec.  241.4 to read as follows:


Sec.  241.4  Relocating retail services; adding new retail service 
facilities.

    (a) Application. (1) Except as otherwise provided below, this 
section applies when the Postal Service proposes either to relocate all 
retail services from a retail service facility to a separate existing 
physical building; or to add a new retail service facility for a 
community. As used in this section, ``retail services'' means the 
single-piece mail services offered to individual members of the public 
on a walk-in basis at a retail service facility, and a ``retail service 
facility'' is a physical building where Postal Service employees 
provide such retail services.
    (2) This section does not apply to temporary additions of retail 
service facilities or to temporary or emergency relocations of retail 
services. The Postal Service may use temporary additions or relocations 
when necessary to support Postal Service business for holidays, special 
events, or overflow business. Temporary additions and relocations 
normally will be limited to 180 days in duration. Any additional 
incremental time periods of up to 180 days each must be approved by the 
Vice President, Facilities or his designee. The Postal Service may use 
emergency relocations when the Postal Service determines relocation is 
required to protect Postal Service business due to events such as 
earthquakes, floods, fire, potential or actual OSHA violations, lease 
terminations or expirations, a lessor exercising a right to relocate 
the Postal Service's premises, safety factors, environmental causes, 
other business disrupting events, or as necessary to protect employees, 
customers, or the sanctity of the mail. Following an emergency 
relocation, as soon as the Postal Service determines it is prudent to 
identify the long term location for the retail services, the Postal 
Service will make an initial decision whether to remain in the 
emergency relocation site on a long term basis, to return to the 
original retail service facility (if feasible), or to relocate to 
another site. After such initial decision, the Postal Service will 
follow the process in paragraph (c) of this section with respect to 
collecting and considering community input on a proposal to implement 
such initial decision.
    (b) Purpose. The purpose of this section is to provide 
opportunities for community members and their elected local officials 
to give input to the Postal Service concerning a proposal to which this 
section applies (a ``proposal''), and for the Postal Service to 
consider that input in determining whether to proceed with, modify, or 
cancel the proposal.
    (c) Collect and consider community input. When the Postal Service 
makes a proposal, a Postal Service representative will take the 
following steps:
    (1) Identify the community and engage local elected officials. The 
Postal Service representative will identify the community the Postal 
Service anticipates would be affected by implementing the proposal, 
taking into account such factors as the Postal Service determines are 
appropriate for the proposal. The Postal Service representative then 
will deliver to one or more local elected public officials a written 
outline of the proposal and offer to discuss the proposal with them. 
The Postal Service representative may elect to conduct such discussion 
either in person or using any other appropriate communication tool, 
including electronic communications. If the officials accept the offer, 
then the Postal Service representative will identify the

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need and outline the proposal that is under consideration to meet it, 
explain the process by which the Postal Service will solicit and 
consider input from the affected community, and solicit input from the 
local officials regarding the proposal.
    (2) Notify the community and arrange for public presentation. The 
Postal Service will send an initial news release outlining the proposal 
to one or more news media serving the community and, if the community 
has a retail service facility, then the Postal Service also will post a 
copy of the information given to local officials or the news release in 
the public lobby of that retail service facility. Additionally, the 
Postal Service representative will ask the local officials to place a 
Postal Service presentation of the proposal on the regular agenda of 
the next scheduled public meeting, or will schedule a separate Postal 
Service public meeting concerning the proposal. At least 15 days prior 
to the meeting, the Postal Service will advertise the date, time, and 
location of the public meeting in a local news medium and, if the 
community has an existing retail service facility, then the Postal 
Service also will post in the public lobby of that retail service 
facility a notice of the date, time, and location of the public 
meeting.
    (3) Present the proposal to the community. At the public meeting, 
the Postal Service will identify the need, e.g., for relocating retail 
services or adding a retail service facility, outline the proposal to 
meet the need, invite questions, solicit written input on the proposal, 
and provide an address to which the community and local officials may 
send written comments and appeals of the proposal for a period of 30 
days following the public meeting. Under exceptional circumstances that 
would prevent a Postal Service representative from attending or 
conducting a public meeting to present the proposal within a reasonable 
time, the Postal Service, in lieu of a public meeting, may give 
customers within the community written notification of the proposal by 
mail or by posting a notice of the proposal in the retail service 
facility that would be affected by the proposal, seeking their written 
input on the proposal and providing an address to which the community 
and local officials may send written comments and appeals of the 
proposal during the 30 days following such notification. An example of 
exceptional circumstances would be a proposal that would be implemented 
in a sparsely populated area remote from the seat of local government 
or any forum where the public meeting reasonably could be held.
    (i) If the proposal concerns relocation, then the Postal Service 
will:
    (A) Discuss the reasons for relocating;
    (B) Identify the site or area to which the Postal Service 
anticipates relocating the retail services; and
    (C) Describe the anticipated size of the retail service facility 
for the relocated retail services, and the anticipated services to be 
offered at such site or in such area. (The Postal Service may identify 
more than one potential relocation site or area, for example, when the 
Postal Service has not selected among competing sites.)
    (ii) If the proposal concerns adding a new retail service facility 
for a community, then the Postal Service will:
    (A) Discuss the reasons for the addition;
    (B) Identify the site or area to which the Postal Service 
anticipates adding the retail service facility;
    (C) Describe the anticipated size of the added retail service 
facility, and the anticipated services to be offered; and
    (D) Outline any anticipated construction (e.g., of a stand-alone 
building or interior improvements to an existing building (or portion 
thereof) that will be leased by the Postal Service). (The Postal 
Service may identify more than one potential site or area, for example, 
when the Postal Service has not selected among competing sites.)
    (4) Consider comments and appeals. After the 30 day comment and 
appeal period, the Postal Service will consider the comments and 
appeals received that identify reasons why the Postal Service's 
proposal (e.g., to relocate to the selected site, or to add a new 
retail service facility) is, or is not, the optimal solution for the 
identified need. Following such consideration, the Postal Service will 
make a final decision to proceed with, modify, or cancel the proposal. 
The Postal Service then will inform local officials in writing of its 
final decision and send an initial news release announcing the final 
decision to local news media. If the community has a retail service 
facility, then the Postal Service also will post a copy of the 
information given to local officials or the news release in the public 
lobby of that retail service facility. The Postal Service then will 
implement the final decision.
    (5) Subsequent site identification. After the public meeting under 
paragraph (c)(3) of this section, if the Postal Service decides to use 
a site or area that it did not identify at the public meeting, and this 
Section applies with respect to such new site or area, then the Postal 
Service will undertake the steps in paragraphs (c)(2) through (4) of 
this section with regard to the new site or area.
    (d) Effect on other obligations and policies. Nothing in this 
section shall add to, reduce, or otherwise modify the Postal Service's 
legal obligations or policies for compliance with independent policies 
or obligations of the Postal Service that are not dependent upon a 
relocation or addition of a retail service facility. These include:
    (1) Section 106 of the National Historic Preservation Act, 16 
U.S.C. 470, Executive Order 12072, and Executive Order 13006;
    (2) 39 U.S.C. 404(d) and 39 CFR 241.3; and
    (3) 39 U.S.C. 409(f).

Stanley F. Mires,
Attorney, Federal Requirements.
[FR Doc. 2014-25403 Filed 10-24-14; 8:45 am]
BILLING CODE 7710-12-P