[Federal Register Volume 81, Number 229 (Tuesday, November 29, 2016)]
[Proposed Rules]
[Pages 85906-85907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28603]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3015

[Docket No. RM2017-1; Order No. 3624]


Competitive Postal Products

AGENCY: Postal Regulatory Commission.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The Commission is initiating a review to determine whether 
competitive products provide the appropriate minimum contribution to 
the Postal Service's institutional costs. This advance notice informs 
the public of the docket's initiation, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: January 23, 2017. Reply Comments are due: 
March 9, 2017.

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.

[[Page 85907]]


SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Background
III. Invitation to Comment
IV. Ordering Paragraphs

I. Introduction

    The Commission initiates this rulemaking to seek comments and 
facilitate the Commission's examination of the appropriate minimum 
contribution to the Postal Service's institutional costs that 
competitive products must provide, pursuant to 39 U.S.C. 3633(b).

II. Background

    The Postal Accountability and Enhancement Act (PAEA) directed the 
Commission to promulgate regulations to ensure that competitive 
products, collectively, cover an appropriate share of the Postal 
Service's institutional costs.\1\ In the initial rulemaking setting the 
appropriate share, the Commission gave considerable weight to the 
historical contribution made by items categorized as competitive 
products by the PAEA and set the minimum contribution level for 
competitive products at 5.5 percent of total institutional costs.\2\ 
The 5.5 percent minimum contribution level was set in line with the 
competitive products' estimated contribution to institutional costs of 
5.4 percent in Fiscal Year (FY) 2005 and 5.7 percent in FY 2006.\3\
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    \1\ Postal Accountability and Enhancement Act (PAEA), Public Law 
109-435, 120 Stat. 3198 (2006); See 39 U.S.C. 3633(a)(3). See also 
39 CFR 3015.7(c).
    \2\ Docket No. RM2007-1, Order No. 43, Order Establishing 
Ratemaking Regulations for Market Dominant and Competitive Products, 
October 29, 2007, ]] 3040-47.
    \3\ See Docket No. RM2007-1, Order No. 26, Order Proposing 
Regulations to Establish a System of Ratemaking, August 15, 2007, at 
] 3059.
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    The PAEA further directs the Commission to revisit competitive 
products' minimum contribution level every 5 years and determine 
whether the institutional cost contribution requirement of 39 U.S.C. 
3633(a)(3) should be retained in its current form, modified, or 
eliminated. See 39 U.S.C. 3633(b).
    The Commission's first 5-year review occurred in Docket No. RM2012-
3.\4\ In that docket, the Commission found the minimum contribution 
level of 5.5 percent for competitive products should be retained.\5\
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    \4\ Docket No. RM2012-3, Order Reviewing Competitive Products' 
Appropriate Share Contributions to Institutional Costs, August 23, 
2012 (Order No. 1449).
    \5\ Order No. 1449 at 24-26. The Commission considered 
circumstances such as a lack of evidence of a Postal Service 
competitive advantage; the market share analysis; changes to the 
market and competitors; historical competitive contribution levels; 
changes to competitive product offers and the mail mix; and 
uncertainties raised in the proceeding. Id. at 24.
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    Five years have passed since the Commission's previous review. As 
such, the Commission initiates Docket No. RM2017-1 to conduct its 
second review of the competitive products' appropriate share 
contribution requirement. The Commission will decide whether 39 CFR 
3015.7(c) should be retained in its current form, modified, or 
eliminated. See 39 CFR 3015.7(c).

III. Invitation To Comment

    Interested persons are invited to provide written comments to 
facilitate the Commission in its examination of the appropriateness of 
the current contribution level for competitive products. Only comments 
filed in the instant docket will be considered as part of the 
Commission's review. Comments related to the Commission's 5-year review 
and competitive products' appropriate share of institutional costs 
filed in other dockets will not be considered.\6\
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    \6\ In Docket No. RM2016-2, as part of Proposal Three, UPS 
petitioned for a review of competitive products' share of 
institutional costs. Docket No RM2016-2, Petition of United Parcel 
Service, Inc. for the Initiation of Proceedings to Make Changes to 
Postal Service Costing Methodologies, October 8, 2015, at Proposal 
Three. In its final order in that docket, the Commission declined to 
consider Proposal Three but stated it will conduct its review as 
required by section 3633(b). Docket No. RM2016-2, Order No. 3506, 
Order Concerning United Parcel Service, Inc.'s Proposed Changes to 
Postal Service Costing Methodologies (UPS Proposals One, Two, and 
Three), September 9, 2016.
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    Comments are due no later than January 23, 2017. Reply comments are 
due no later than March 9, 2017. All comments and suggestions received 
will be available for review on the Commission's Web site, http://www.prc.gov.
    Pursuant to 39 U.S.C. 505, Kenneth R. Moeller is appointed to serve 
as an officer of the Commission (Public Representative) to represent 
the interests of the general public in the above-captioned docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2017-1, in compliance 
with 39 U.S.C. 3633(b).
    2. Comments are due no later than January 23, 2017. Reply comments 
are due no later than March 9, 2017.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Kenneth R. 
Moeller 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 Notice in 
the Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2016-28603 Filed 11-28-16; 8:45 am]
 BILLING CODE 7710-FW-P