[Federal Register Volume 85, Number 33 (Wednesday, February 19, 2020)]
[Rules and Regulations]
[Pages 9614-9660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01055]



[[Page 9613]]

Vol. 85

Wednesday,

No. 33

February 19, 2020

Part III





 Postal Regulatory Commission





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39 CFR Chapter III





 Reorganization of Postal Regulatory Commission Rules; Final Rule

  Federal Register / Vol. 85 , No. 33 / Wednesday, February 19, 2020 / 
Rules and Regulations  

[[Page 9614]]


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POSTAL REGULATORY COMMISSION

39 CFR Chapter III

[Docket No. RM2019-13; Order No. 5407]


Reorganization of Postal Regulatory Commission Rules

AGENCY: Postal Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Commission is adopting final rules that reorganize the 
order of appearance of its regulations and revise multiple sections 
therein.

DATES: This rule is effective on April 20, 2020.

ADDRESSES: For additional information, Order No. 5407 can be accessed 
electronically through the Commission's website at https://www.prc.gov.

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

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Relevant Statutory Requirements
II. Background
III. Basis and Purpose of Final Rules
IV. Implementation of the Final Rules
Final Rules

I. Relevant Statutory Requirements

    Section 503 of title 39 of the United States Code authorizes the 
Commission to ``promulgate rules and regulations and establish 
procedures, subject to chapters 5 and 7 of title 5, and take any other 
action they deem necessary and proper to carry out their functions and 
obligations to the government of the United States and the people as 
prescribed under this title.'' 39 U.S.C. 503.
    The rules and regulations previously adopted by the Commission 
cover a broad spectrum of subjects and activities subject to statutory 
requirements, including standards of conduct for Commission employees 
(39 U.S.C. 503, 504, and Pub. L. 93-579); access to information in the 
possession of the Commission (5 U.S.C. 552; 39 U.S.C. 503, and 504(g)); 
rules of practice and procedure (5 U.S.C. 553, 554; 39 U.S.C. 404(d), 
404a, 503, 504(f), 3661, and 3662); and rules applicable to Postal 
Service rates, products and services, and reports (39 U.S.C. 2011, 
3622, 3631, 3633, 3644, 3641, 3642, 3651, 3652, and 3682).

II. Background

    Shortly after its creation in 1970, the Commission's predecessor, 
the Postal Rate Commission, adopted rules governing practice before 
it.\1\ Since most proceedings were at that time conducted as trial-type 
hearings, referred to as hearings on the record, most of the rules of 
practice addressed practices tailored to administrative litigation. 
Only one of the original rules of practice addressed procedures in 
rulemaking proceedings. 39 CFR 3001.41. The rules of practice were all 
contained in 39 CFR part 3001. In the years following adoption of the 
original rules of practice, the Commission added new subparts to 39 CFR 
part 3001 that either supplemented the original rules or adopted rules 
applicable to additional regulatory responsibilities.\2\
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    \1\ Postal Rate Commission, Rules of Practice and Procedure, 36 
FR 396 (January 12, 1971).
    \2\ E.g., 39 CFR part 3001, subpart F, Rules Applicable to the 
Filing of Testimony by Intervenors, 38 FR 7536 (March 22, 1973); 39 
CFR part 3001, subpart L, Rules Applicable to Negotiated Service 
Agreements, 69 FR 7574 (February 18, 2004).
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    In 2006, Congress enacted the Postal Accountability and Enhancement 
Act, Pub. L. 109-435, 120 Stat. 3198 (2006) (PAEA). The PAEA made 
significant changes to the regulatory framework within which the 
Commission (renamed the Postal Regulatory Commission) exercised 
oversight of the Postal Service's rates and services. The PAEA also 
streamlined the process for approval of price increases by replacing 
the requirement for trial-type hearings on the record with notice and 
comment procedures closely analogous to informal rulemaking 
proceedings. These statutory changes required significant changes to 
the Commission's regulations, including its rules of practice.
    The demands of implementing the far-reaching changes mandated by 
the PAEA in a timely manner prevented the Commission from undertaking a 
more comprehensive review and update of its rules. In their current 
form, the Commission's rules and regulations are not presented in any 
logical order or with a grouping of similar materials to facilitate 
their application.

III. Basis and Purpose of Final Rules

    The proposed amendments to the rules of practice will codify 
existing Commission practice and make changes needed to make 
proceedings more efficient. Implementation of these changes should also 
enhance the ability of participants in Commission proceedings to 
participate more efficiently and effectively. The reorganization of the 
Commission's remaining regulations will accommodate changes to the 
rules of practice and will facilitate the location of relevant 
regulations.
    The Commission's order organizes rules and regulations in six 
subchapters. Subchapter A to 39 CFR chapter III provides for the 
organization of the Commission and establishes standards of conduct for 
Commission employees. Subchapter B to 39 CFR chapter III contains rules 
governing access to information in the Commission's possession. 
Subchapter C to 39 CFR chapter III contains generally applicable rules 
of practice. Subchapter D to 39 CFR chapter III contains special rules 
of practice for specific types of Commission proceedings. Subchapter E 
to 39 CFR chapter III contains regulations governing Postal Service 
products and services. Subchapter F to 39 CFR chapter III contains 
regulations governing periodic reports by the Postal Service, its 
accounting practices, and its treatment of taxes.
    The generally applicable rules of practice in subchapter C to 39 
CFR chapter III are grouped in subparts containing related rules and 
should make the rules easier to use by regular participants in 
Commission proceedings and by those who participate less frequently. 
Subpart A to 39 CFR part 3010 contains generally applicable rules, such 
as rules that establish definitions, rules that govern the 
establishment of dockets, and rules that establish how time periods are 
to be computed. Subpart B to 39 CFR part 3010 addresses filing 
requirements. Subpart C to 39 CFR part 3010 governs participation in 
Commission proceedings. Subpart D to 39 CFR part 3010 establishes 
requirements for notice, motions, and Commission information requests. 
Subpart E to 39 CFR part 3010 establishes procedures for notice and 
comment rulemaking proceedings. Subpart F to 39 CFR part 3010 
establishes procedures for on-the-record hearings.

IV. Implementation of the Final Rules

    The Commission is delaying the effective date of these changes 
until April 20, 2020. This should facilitate the transition from the 
Commission's existing rules and regulations to the reorganized and 
revised rules by providing the Postal Service and interested persons an 
opportunity to familiarize themselves with the changes prior to 
implementation. It should also prevent unnecessary confusion in several 
major pending proceedings, such as the annual compliance review 
proceeding currently underway in Docket No. ACR2019, by delaying 
implementation of the revised and reorganized rules until after those

[[Page 9615]]

proceedings are either concluded or have gone before the Commission for 
decision. Further Commission guidance regarding implementation of the 
revised and reorganized rules will be provided as necessary in 
proceedings that are still in progress as of April 20, 2020.

Final Rules

List of Subjects

39 CFR Part 3000

    Conflict of interests.

39 CFR Part 3001

    Administrative practice and procedure, Confidential business 
information, Freedom of information, Sunshine Act.

39 CFR Part 3002

    Organization and functions (Government agencies), Seals and 
insignia.

39 CFR Part 3003

    Privacy.

39 CFR Part 3004

    Administrative practice and procedure, Freedom of information, 
Reporting and recordkeeping requirements.

39 CFR Part 3005

    Administrative practice and procedure, Confidential business 
information, Postal Service, Reporting and recordkeeping requirements.

39 CFR Part 3007

    Administrative practice and procedure, Confidential business 
information.

39 CFR Part 3008

    Administrative practice and procedure, Courts.

39 CFR Parts 3010, 3020, and 3035

    Administrative practice and procedure, Postal Service.

39 CFR Parts 3015, 3025, 3030, and 3031

    Administrative practice and procedure.

39 CFR Part 3017

    Administrative practice and procedure, Postal Service, Treaties.

39 CFR Part 3032

    Administrative practice and procedure, Postal Service, Trademarks.

39 CFR Part 3050

    Administrative practice and procedure, Postal Service, Reporting 
and recordkeeping requirements.

39 CFR Part 3055 and 3060

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

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

0
1. Under the authority of 39 U.S.C. 503, redesignate the parts in the 
``Current part'' column as the parts in the ``New part'' column as 
shown in the following table:

------------------------------------------------------------------------
                         Current part                           New part
------------------------------------------------------------------------
3035.........................................................       3045
3020.........................................................       3040
3015.........................................................       3035
3030.........................................................       3022
3010.........................................................       3030
3025.........................................................       3021
3017.........................................................       3025
3032.........................................................       3024
3031.........................................................       3023
3005.........................................................       3013
3008.........................................................       3012
3007.........................................................       3011
3001.........................................................       3010
3004.........................................................       3006
3003.........................................................       3005
3000.........................................................       3001
3002.........................................................       3000
------------------------------------------------------------------------

Subchapter A--The Commission

0
 2. Designate newly redesignated parts 3000 and 3001 as subchapter A 
under the heading set forth above.

Subchapter B--Seeking Information From the Commission

0
3. Designate newly redesignated parts 3005 and 3006 as subchapter B 
under the heading set forth above.

Subchapter C--General Rules of Practice for Proceedings Before the 
Commission

0
4. Designate newly redesignated parts 3010 through 3013 as subchapter C 
under the heading set forth above.

Subchapter D--Special Rules of Practice for Specific Proceeding 
Types

0
5. Designate newly redesignated parts 3020 through 3025 as subchapter D 
under the heading set forth above.

Subchapter E--Regulations Governing Market Dominant Products, 
Competitive Products, Product Lists, and Market Tests

0
6. Designate newly redesignated parts 3030 through 3045 as subchapter E 
under the heading set forth above.

Subchapter F--Periodic Reporting, Accounting Practices, and Tax 
Rules

0
7. Designate parts 3050 through 3099 as subchapter F under the heading 
set forth above.

PART 3040--PRODUCT LISTS

0
8. Under the authority of 39 U.S.C. 503, for newly redesignated part 
3040, redesignate Sec. Sec.  3020.1 through 3020.112 as Sec. Sec.  
3040.101 through 3040.212, respectively.

PART 3035--REGULATION OF RATES FOR COMPETITIVE PRODUCTS

0
9. Under the authority of 39 U.S.C. 503, for newly redesignated part 
3035, redesignate Sec. Sec.  3015.1 through 3015.7 as Sec. Sec.  
3035.101 through 3035.107, respectively.

PART 3030--REGULATION OF RATES FOR MARKET DOMINANT PRODUCTS

0
10. Under the authority of 39 U.S.C. 503, for newly redesignated part 
3030, redesignate Sec. Sec.  3010.1 through 3010.66 as Sec. Sec.  
3030.501 through 3030.566, respectively.

PART 3025--PROCEDURES RELATED TO COMMISSION VIEWS

0
11. Under the authority of 39 U.S.C. 503, for newly redesignated part 
3025, redesignate Sec. Sec.  3017.1 through 3017.5 as Sec. Sec.  
3025.101 through 3025.105, respectively.

PART 3005--PRIVACY ACT RULES

0
12. Under the authority of 39 U.S.C. 503, for newly redesignated part 
3005, redesignate Sec. Sec.  3003.1 through 3003.7 as Sec. Sec.  
3005.101 through 3005.107, respectively.

PART 3001--STANDARDS OF CONDUCT

0
13. Under the authority of 39 U.S.C. 503, for newly redesignated part 
3001, redesignate Sec. Sec.  3000.5 through 3000.55 as Sec. Sec.  
3001.105 through 3001.155, respectively.

PART 3000--ORGANIZATION

0
14. Under the authority of 39 U.S.C. 503, for newly redesignated part 
3000, redesignate Sec. Sec.  3002.1 through 3002.16 as Sec. Sec.  
3000.101 through 3000.116, respectively.

[[Page 9616]]

PART 3000--THE COMMISSION AND ITS OFFICES

0
 15. The authority for newly redesignated part 3000 continues to read 
as follows:

    Authority:  39 U.S.C. 503; 5 U.S.C. 552.


0
16. Revise heading for newly redesignated part 3000 to read as set 
forth above.

0
 17. Amend newly redesignated Sec.  3000.102 by revising paragraph (b) 
to read as follows:


Sec.  3000.102  Statutory functions.

* * * * *
    (b) Public participation. Interested persons may participate in 
proceedings before the Commission as described in part 3010, subpart C 
of this chapter. Pursuant to 39 U.S.C. 3662(a) and part 3022 of this 
chapter, any interested person may lodge rate and service complaints 
with the Commission. Persons served by a post office that the Postal 
Service decides to close or consolidate may appeal such determinations 
in accordance with 39 U.S.C. 404(d) and part 3021 of this chapter.

0
18. Amend newly redesignated Sec.  3000.110 by revising paragraphs (b) 
and (c) to read as follows:


Sec.  3000.110  The Commission and its offices.

* * * * *
    (b) The Chairman and Vice Chairman. The Chairman has the 
administrative responsibility for assigning the business of the 
Commission to the other Commissioners and to the offices and employees 
of the Commission. The Chairman has the administrative duty to preside 
at the meetings and sessions of the Commission and to represent the 
Commission in matters specified by statute or executive order or as the 
Commission directs. The Commission shall elect annually a member of the 
Commission to serve as Vice Chairman of the Commission for a term of 
one year or until a successor is elected. In case of a vacancy in the 
Office of the Chairman of the Commission, or in the absence or 
inability of the Chairman to serve, the Vice Chairman, unless otherwise 
directed by the Chairman, shall have the administrative 
responsibilities and duties of the Chairman during the period of 
vacancy, absence, or inability.
    (c) Commission offices. The Commission's offices are located at 901 
New York Avenue NW, Suite 200, Washington, DC 20268-0001. On these 
premises, the Commission maintains offices for Commissioners and staff; 
a docket room where documents may be filed with the Commission pursuant 
to part 3010, subpart B of this chapter and examined by interested 
persons, a public reading room where the Commission's public records 
are available for inspection and copying; and a hearing room where 
formal evidentiary proceedings are held on matters before the 
Commission. The Commission also maintains an electronic reading room 
accessible through the internet, on its website at http://www.prc.gov.

0
19. Amend newly redesignated Sec.  3000.112 by revising paragraph (b) 
introductory text to read as follows:


Sec.  3000.112   Office of Accountability and Compliance.

* * * * *
    (b) The Office of Accountability and Compliance provides the 
analytic support to the Commission for the review of rate changes, 
negotiated service agreements, classification of products, the Annual 
Compliance Determination, the Annual Report, changes to postal 
services, post office closings and other issues which come before the 
Commission. The functional areas of expertise within this office are:
* * * * *

0
20. Amend newly redesignated Sec.  3000.115 by revising paragraph 
(b)(2) to read as follows:


Sec.  3000.115  Office of Public Affairs and Government Relations.

* * * * *
    (b) * * *
    (2) Consumer Affairs. As the principal source of outreach and 
education to the public, the Office of Public Affairs and Government 
Relations provides information to postal consumers and assists in the 
resolution of rate and service inquiries from members of the public 
pursuant to part 3023 of this chapter. It supports the impartial 
resolution of those inquiries through use of the Postal Service's 
Office of Consumer Advocate and reports the results to the Commission. 
The Office of Public Affairs and Government Relations also utilizes 
procedures available under the Commission's rules and applicable law to 
assist relevant stakeholders in appeals of Postal Service decisions to 
close or consolidate individual post offices; maintains a record of 
service-related inquiries; and posts calendar updates and other public 
information on the Commission's website.
* * * * *

PART 3001--EMPLOYEE STANDARDS OF CONDUCT

0
 21. The authority for newly redesignated part 3001 continues to read 
as follows:

    Authority: 39 U.S.C. 503, 504, 3603; E.O. 12674, 54 FR 15159, 3 
CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 56 FR 42547, 3 
CFR, 1990 Comp., p. 396; 5 CFR parts 2634 and 2635.


0
22. Revise the heading of newly redesignated part 3001 to read as set 
forth above.

0
 23. Amend newly redesignated Sec.  3001.105 by revising paragraph (b) 
to read as follows:


Sec.  3001.105  Post-employment restrictions.

* * * * *
    (b) No former employee of the Commission may within one year after 
the individual's employment has ceased, practice before or act as an 
attorney, expert witness, or representative in connection with any 
proceeding or matter before the Commission that was under the official 
responsibility of such individual, as defined in 18 U.S.C. 202(b), 
while in the service of the Commission.

0
24. Amend newly redesignated Sec.  3001.150 by revising paragraph (b) 
to read as follows:


Sec.  3001.150  Ex parte communications prohibited.

* * * * *
    (b) Additional ex parte communications requirements, applicable to 
specific docket types, are described in part 3012 of this chapter.

PART 3005--PRIVACY ACT RULES

0
25. The authority for newly redesignated part 3005 continues to read as 
follows:

    Authority:  Privacy Act of 1974 (Pub. L. 93-579), 5 U.S.C. 552a.


0
26. Amend newly redesignated Sec.  3005.103 by revising paragraphs 
(a)(1) through (3) and (c)(3) and (4) to read as follows:


Sec.  3005.103  Procedures for requesting inspection, copying, or 
correction.

    (a) * * *
    (1) Wishes to know whether a Commission system of records contains 
a record about the individual,
    (2) Seeks access to a Commission record about the individual that 
is maintained in a system of records (including the accounting of 
disclosures), or
    (3) Seeks to amend a record about the individual that is maintained 
in a system of records, may file a written

[[Page 9617]]

request with the chief administrative officer of the Commission at the 
Commission's current address (901 New York Avenue NW, Suite 200, 
Washington, DC 20268-0001). The request should state on the outside of 
the envelope and in the request that it is a Privacy Act request.
* * * * *
    (c) * * *
    (3) If accompanied by another individual, must sign a statement, if 
requested by the chief administrative officer, authorizing discussion 
of the individual's record in the presence of that individual;
    (4) Who files a request by mail must include the individual's date 
of birth, dates of employment at the Commission (if applicable), and 
suitable proof of identity, such as a facsimile of a driver's license, 
employee identification card, or Medicare card; and
* * * * *

PART 3006--PUBLIC RECORDS AND FREEDOM OF INFORMATION ACT

0
 27. The authority for newly redesignated part 3006 continues to read 
as follows:

    Authority: 5 U.S.C. 552; 39 U.S.C. 503.

0
28. Amend newly redesignated Sec.  3006.1 by revising paragraphs (b) 
and (c) to read as follows:


Sec.  3006.1  Purpose.

* * * * *
    (b) Information required to be published or made available pursuant 
to 5 U.S.C. 552(a)(1) and (a)(2) may be found in part 3000 of this 
chapter, and on the Commission's website at http://www.prc.gov. The 
Commission's guide to FOIA, all required FOIA indexes, and recent 
annual FOIA reports are also available on the website.
    (c) Section 3006.10 identifies records that the Commission has 
determined to be public.

0
29. Amend newly redesignated Sec.  3006.2 by revising paragraph (b) to 
read as follows:


Sec.  3006.2  Presumption of openness.

* * * * *
    (b) It is the stated policy of the Commission that FOIA requests 
shall be administered with a clear presumption of openness. The 
Commission will only withhold information if it reasonably foresees 
that disclosure would harm an interest protected by a FOIA exemption, 
as enumerated in Sec.  3006.11, or disclosure is otherwise prohibited 
by law.
* * * * *

0
30. Amend newly redesignated Sec.  3006.10 by revising paragraph (a) 
introductory text to read as follows:


Sec.  3006.10  Public records.

    (a) Except as provided in Sec.  3006.11 and in Sec.  3011.200 of 
this chapter, the public records of the Commission include all 
submissions and filings as follows:
* * * * *

0
31. Amend newly redesignated Sec.  3006.12 by revising paragraph (b) to 
read as follows:


Sec.  3006.12  Reading room.

* * * * *
    (b) The records available for public inspection and printing 
include, for example, decisions; reports; opinions; orders; notices; 
findings; determinations; statements of policy; copies of selected 
records released under FOIA; indexes required to be maintained under 
FOIA; and records described in Sec.  3006.10 relating to any matter or 
proceeding before the Commission.
* * * * *

0
32. Amend newly redesignated Sec.  3006.30 by revising paragraphs (b), 
(d) introductory text, (d)(2), and (e)(2) to read as follows:


Sec.  3006.30  Relationship among the Freedom of Information Act, the 
Privacy Act, and the Commission's procedures for according appropriate 
confidentiality.

* * * * *
    (b) Requesting records subject to the Privacy Act. A request by an 
individual for the individual's own records contained in a system of 
records is governed by the Privacy Act. Release will first be 
considered under the Privacy Act pursuant to part 3005 of this chapter. 
However, if there is any record that the Commission need not release 
under the Privacy Act, the Commission will also consider the request 
under FOIA, and will release the record if FOIA requires it.
* * * * *
    (d) Requesting a Postal Service record. The Commission maintains 
custody of records that are both Commission and Postal Service records. 
In all instances that the Postal Service submits materials to the 
Commission that the Postal Service reasonably believes to be exempt 
from public disclosure, the Postal Service shall follow the procedures 
described in subpart B of part 3011 of this chapter.
* * * * *
    (2) A request made pursuant to part 3011 of this chapter for 
records designated as non-public by the Postal Service shall be 
considered under the applicable standards set forth in that part.
    (e) * * *
    (2) A request made pursuant to part 3011 of this chapter for 
records designated as non-public by a person other than the Postal 
Service shall be considered under the applicable standards set forth in 
that part.

0
33. Amend newly redesignated Sec.  3006.40 by revising paragraph (a)(6) 
to read as follows:


Sec.  3006.40  Hard copy requests for records and for expedited 
processing.

    (a) * * *
    (6) Identify the request category under Sec.  3006.51; and
* * * * *

0
34. Amend newly redesignated Sec.  3006.41 by revising paragraph (a)(4) 
to read as follows:


Sec.  3006.41  Electronic requests for records and for expedited 
processing.

    (a) * * *
    (4) Identify the request category under Sec.  3006.51; and
* * * * *

0
35. Amend newly redesignated Sec.  3006.43 by revising paragraph (f) to 
read as follows:


Sec.  3006.43  Response to requests.

* * * * *
    (f) Where a compelling need is not shown in an expedited request as 
specified in Sec.  3006.41(b)(1), the Commission may grant requests for 
expedited processing at its discretion.

0
36. Amend newly redesignated Sec.  3006.51 by revising paragraph (b) to 
read as follows:


Sec.  3006.51  Fees--request category.

* * * * *
    (b) Privacy Act. A request by an individual for the individual's 
own records in a system of records will be charged fees as provided 
under the Commission's Privacy Act regulations in part 3005 of this 
chapter.

0
37. Amend newly redesignated Sec.  3006.52 by revising paragraphs (e) 
introductory text and (e)(1) to read as follows:


Sec.  3006.52  Fees--general provisions.

* * * * *
    (e) No requester will be charged a fee after any search or response 
which occurs after the applicable time limits as described in 
Sec. Sec.  3006.43 and 3006.44, unless:
    (1) The Commission extends the time limit for its response due to 
unusual circumstances, pursuant to Sec.  3006.45(a),

[[Page 9618]]

and the Commission completes its response within the extension of time 
provided under that section; or
* * * * *

0
38. Amend newly redesignated Sec.  3006.53 by revising paragraph (b) to 
read as follows:


Sec.  3006.53  Fee schedule.

* * * * *
    (b) In addition to the fee waiver provisions of Sec.  3006.52(d), 
fees may be waived at the discretion of the Commission.

0
39. Amend newly redesignated Sec.  3006.54 by revising paragraph (a)(2) 
to read as follows:


Sec.  3006.54  Procedure for assessing and collecting fees.

    (a) * * *
    (2) When advance payment is required, the administrative time 
limits prescribed in 5 U.S.C. 552(a)(6) (Sec.  3006.43) begin only 
after such payment has been received.
* * * * *

0
40. Revise newly redesignated Sec.  3006.61 to read as follows:


Sec.  3006.61  Freedom of Information Act Public Liaison.

    The Commission designates the Director of the Office of Public 
Affairs and Government Relations or the individual's designee as the 
FOIA Public Liaison who shall assist in the resolution of any dispute 
between a requester and the Commission. The FOIA Public Liaison may be 
contacted via email at [email protected] or telephone at 202-789-6800.

0
41. Amend newly redesignated Sec.  3006.70 by revising paragraphs (a) 
through (c) to read as follows:


Sec.  3006.70  Submission of non-public materials by a person other 
than the Postal Service.

    (a) Overlap with treatment of non-public materials. Any person who 
submits materials to the Commission (submitter) that the submitter 
reasonably believes to be exempt from public disclosure shall follow 
the procedures described in subpart B of part 3011 of this chapter.
    (b) Notice of request. Except as provided in Sec.  3006.30(d), if a 
FOIA request seeks materials designated as non-public materials, the 
Commission will provide the submitter with notice of the request. The 
Commission may also provide notice when it has reason to believe that 
materials submitted by a person other than the Postal Service are 
possibly exempt from disclosure and may fall within the scope of any 
FOIA request.
    (c) Objections to disclosure. A submitter may file written 
objections to the request specifying all grounds for withholding the 
information under FOIA within seven days of the date of the notice. If 
the submitter fails to respond to the notice, the submitter will be 
considered to have no objection, beyond those objections articulated in 
its application for non-public treatment pursuant to Sec.  3011.201 of 
this chapter, to the disclosure of the information.
* * * * *

0
42. Add new part 3007, consisting of Sec.  3007.100, to subchapter B to 
read as follows:

PART 3007--COMMISSION MEETINGS

    Authority:  39 U.S.C. 404(d); 503; 504; 3661.


Sec.  3007.100  Public access to Commission meetings.

    (a) Definition. Commission meeting means the deliberations of at 
least three Commissioners where such deliberations determine or result 
in the joint conduct or disposition of official Commission business.
    (b) Open Commission meetings. (1) Commissioners shall not jointly 
conduct or dispose of agency business other than in accordance with 
this section. Except as provided in paragraph (d) of this section, 
every portion of every meeting of the Commission shall be open to 
public observation.
    (2) Members of the public may not participate in open meetings. 
They may record the proceedings, provided they use battery-operated 
recording devices at their seats. Cameras may be used by observers to 
photograph proceedings, provided it is done from their seats and no 
flash or lighting equipment is used. Persons may electronically record 
or photograph a meeting, as long as such activity does not impede or 
disturb the members of the Commission in the performance of their 
duties, or members of the public attempting to observe, or to record or 
photograph, the Commission meeting.
    (c) Physical arrangements for open meetings. The Secretary shall be 
responsible for seeing that ample space, sufficient visibility, and 
adequate acoustics are provided for public observation of the 
Commission meetings.
    (d) Closed Commission meetings. Except in a case where the 
Commission finds that the public interest requires otherwise, the 
second sentence of paragraph (b)(1) of this section shall not apply to 
any portion of a Commission meeting, and the requirements of paragraphs 
(f) and (g) of this section shall not apply to any information 
pertaining to such meeting otherwise required by this section to be 
disclosed to the public, where the Commission properly determines that 
such portion or portions of its meetings or the disclosure of such 
information is likely to:
    (1) Disclose matters that:
    (i) Are specifically authorized under criteria established by an 
Executive order to be kept secret in the interests of national defense 
or foreign policy; and
    (ii) Are in fact properly classified pursuant to such Executive 
order.
    (2) Relate solely to the internal personnel rules and practices of 
the Commission;
    (3) Disclose matters specifically exempted from disclosure by 
statute (other than 5 U.S.C. 552), provided that such statute:
    (i) Requires the matter to be withheld from the public in such a 
manner as to leave no discretion on the issue; or
    (ii) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld.
    (4) Disclose trade secrets and commercial or financial information 
obtained from a person and privileged or confidential;
    (5) Involve accusing any person of a crime, or formally censuring 
any person;
    (6) Disclose information of a personal nature where disclosure 
would constitute a clearly unwarranted invasion of personal privacy;
    (7) Disclose investigatory records compiled for law enforcement 
purposes, or information which if written would be contained in such 
records, but only to the extent that the production of such records or 
information would:
    (i) Interfere with enforcement proceedings;
    (ii) Deprive a person of a right to a fair trial or an impartial 
adjudication;
    (iii) Constitute an unwarranted invasion of personal privacy;
    (iv) Disclose the identity of a confidential source and, in the 
case of a record compiled by a criminal law enforcement authority in 
the course of a criminal investigation, or by an agency conducting a 
lawful national security intelligence investigation, confidential 
information furnished only by the confidential source;
    (v) Disclose investigative techniques and procedures; or
    (vi) Endanger the life or physical safety of law enforcement 
personnel.
    (8) Disclose information contained in or related to examination, 
operating, or condition reports prepared by, on behalf of, or for the 
use of an agency responsible for the regulation or supervision of 
financial institutions;

[[Page 9619]]

    (9) Disclose information the premature disclosure of which would be 
likely to significantly frustrate implementation of a proposed 
Commission action, except that this paragraph (d)(9) shall not apply in 
any instance where the Commission has already disclosed to the public 
the content or nature of its proposed action, or where the Commission 
is required by law to make such disclosure on its own initiative prior 
to taking final Commission action on such proposal; or
    (10) Specifically concern the Commission's issuance of a subpoena 
or the Commission's participation in a civil action or appellate 
proceeding, an action in a foreign court or international tribunal, or 
an arbitration, or the initiation, conduct or disposition by the 
Commission of a particular case of formal Commission adjudication 
pursuant to the procedures in 5 U.S.C. 554 or otherwise involving a 
determination on the record after opportunity for a hearing.
    (e) Procedures for closing meetings. (1) Action under paragraph (d) 
of this section shall be taken only when three Commissioners vote to 
take such action. A separate vote of the Commissioners shall be taken 
with respect to each agency meeting a portion or portions of which are 
proposed to be closed to the public pursuant to paragraph (d) of this 
section, or with respect to any information which is proposed to be 
withheld under paragraph (d) of this section. A single vote may be 
taken with respect to a series of meetings, a portion or portions of 
which are proposed to be closed to the public, or with respect to any 
information concerning such series of meetings, so long as each meeting 
in such series involves the same particular matters and is scheduled to 
be held no more than 30 days after the initial meeting in such series. 
The vote of each Commissioner participating in such vote shall be 
recorded and no proxies shall be allowed.
    (2) Whenever any person whose interests may be directly affected by 
a portion of a meeting requests that the Commission close such portion 
to the public for any of the reasons referred to in paragraph (d)(5), 
(6), or (7) of this section, the Commission upon request of any one of 
its members, shall vote by recorded vote whether to close such meeting.
    (3) Within one day of any vote taken pursuant to paragraph (e)(1) 
or (2) of this section, the Commission shall make publicly available a 
written copy of such vote reflecting the vote of each member on the 
question. If a portion of a meeting is to be closed to the public, the 
Commission shall, within one day of the vote taken pursuant to 
paragraph (e)(1) or (2) of this section, make publicly available a full 
written explanation of its action closing the portion together with a 
list of all persons expected to attend the meeting and their 
affiliation.
    (4) Any person may protest a Commission decision to hold a closed 
meeting under paragraph (e)(1) or (2) of this section by filing a 
motion to open the meeting. Such motion shall be addressed to the 
Commission and shall set forth with particularity the statutory or 
other authority relied upon, the reasons for which the movant believes 
the meeting should not be closed, and the reasons for which the movant 
believes that the public interest requires the meeting to be open. Such 
motion shall be filed with the Secretary no later than 24 hours prior 
to the time for which the closed meeting is scheduled.
    (5) The Commission has determined that a majority of its meetings 
may be closed to the public pursuant to paragraph (d)(4), (8), or (10) 
of this section or any combination thereof. Therefore, pursuant to 5 
U.S.C. 552b(d)(4), Commission meetings shall be closed to the public 
pursuant to paragraph (d)(4), (8), or (10) of this section or any 
combination thereof when three Commissioners vote by recorded vote at 
the beginning of such meeting, or portion thereof, to close the exempt 
portion or portions of the meeting, and a copy of such vote, reflecting 
the vote of each Commissioner on the question, is made available to the 
public. The provisions of paragraphs (e)(1) through (3) and (f) of this 
section shall not apply to any portion of a meeting to which paragraph 
(e)(5) of this section applies: Provided, that the Commission shall, 
except to the extent that such information is exempt from disclosure 
under the provisions of paragraph (d) of this section, provide the 
public with public announcement of the time, place, and subject matter 
of the meeting and of each portion thereof at the earliest practicable 
time.
    (f) Scheduling and public announcement. (1) In the case of each 
meeting, the Commission shall make public announcement, at least one 
week before the meeting, of the time, place, and subject matter of the 
meeting, whether it is to be open or closed to the public, and the name 
and phone number of the official designated by the Commission to 
respond to requests for information about the meeting. Such 
announcement shall be made unless three Commissioners determine by a 
recorded vote that Commission business requires that such meeting be 
called at an earlier date, in which case the Commission shall make 
public announcement of the time, place, and subject matter of such 
meeting, and whether open or closed to the public, at the earliest 
practicable time.
    (2) The time or place of a meeting may be changed following the 
public announcement required by paragraph (f)(1) of this section only 
if the Commission publicly announces such change at the earliest 
practicable time. The subject matter of a meeting, or the determination 
of the Commission to open or close a meeting, or a portion of a 
meeting, to the public, may be changed following the public 
announcement required by paragraph (f)(1) of this section only if:
    (i) Three Commissioners determine by a recorded vote that 
Commission business so requires and that no earlier announcement of the 
change was possible; and
    (ii) The Commission publicly announces such change and the vote of 
each Commissioner upon such change at the earliest practicable time.
    (3) Immediately following each public announcement required by this 
paragraph (f), notice of the time, place, and subject matter of a 
meeting, whether the meeting is open or closed, any change in one of 
the preceding, and the name and phone number of the official designated 
by the Commission to respond to requests for information about the 
meeting, shall also be submitted for publication in the Federal 
Register.
    (4) The public announcement required by this section may consist of 
the Secretary:
    (i) Publicly posting a copy of the document in the reception area 
of the Postal Regulatory Commission located at 901 New York Avenue NW, 
Suite 200, Washington, DC 20268-0001;
    (ii) Mailing a copy to all persons whose names are on a mailing 
list maintained for this purpose;
    (iii) Operating a recorded telephone announcement, giving the 
announcement; and
    (iv) Any other means which the Secretary believes will serve to 
further inform any persons who might be interested.
    (g) Certification of closed meetings; transcripts, electronic 
recordings, and minutes. (1) Before any meeting to be closed pursuant 
to paragraphs (d)(1) through (10) of this section, the General Counsel 
of the Commission, or in the General Counsel's absence, the senior 
advisory staff attorney available, should publicly certify that, in the 
individual's opinion, the meeting may be closed to the public and shall 
state each relevant exemptive provision. A copy of such

[[Page 9620]]

certification, together with a statement from the presiding officer of 
the meeting setting forth the time and place of the meeting, and the 
persons present, shall be retained by the Commission. The Commission 
shall maintain a complete transcript or electronic recording adequate 
to record fully the proceedings of each meeting, or portion of a 
meeting, closed to the public, except that in the case of a meeting, or 
portion of a meeting, closed to the public pursuant to paragraph (d)(8) 
or (10) of this section, the Commission shall maintain either such a 
transcript or recording, or a set of minutes. Such minutes shall fully 
and clearly describe all matters discussed and shall provide a full and 
accurate summary of any actions taken, and the reasons therefor, 
including a description of the views expressed on any item and the 
record of any rollcall vote (reflecting the vote of each Commissioner 
on the question). All documents considered in connection with any 
action shall be identified in such minutes.
    (2) The Commission shall make promptly available to the public, in 
a place easily accessible to the public, the transcript, electronic 
recording, or minutes (as required by paragraph (g)(1) of this section) 
of the discussion of any item on the agenda, or of any item of the 
testimony of any witness received at the meeting, except for such item 
or items of such discussion or testimony as the Commission determines 
by a majority vote of all its members contains information which may be 
withheld under paragraph (d) of this section, and is not required by 
the public interest to be made available. Copies of such transcript, or 
minutes, or a transcription of such recording disclosing the identity 
of each speaker, shall be furnished to any person at the actual cost of 
duplication or transcription. The Commission shall maintain a complete 
verbatim copy of the transcript, a complete copy of the minutes, or a 
complete electronic recording of each meeting, or portion of a meeting, 
closed to the public, for a period of at least two years after such 
meeting, or until one year after the conclusion of any Commission 
proceeding with respect to which the meeting or portion was held, 
whichever occurs later.
    (h) Requests to open or close Commission meetings. (1)(i) Any 
person may request in writing that the Commission open to public 
observation discussion of a matter which it has earlier decided to 
close.
    (ii) Such requests shall be captioned ``Request to open __ (date) 
Commission meeting on item __ (number or description).'' The request 
shall state the reason(s) therefor, the name and address of the person 
making the request and, if desired, a telephone number.
    (iii) Ten copies of such requests must be received by the Office of 
Secretary and Administration no later than three working days after the 
issuance of the notice of meeting to which the request pertains. 
Requests received after that time will be returned to the requester 
with a statement that the request was untimely received and that copies 
of any nonexempt portions of the transcript or minutes for the meeting 
in question will ordinarily be available in the Office of Secretary and 
Administration ten working days after the meeting.
    (2)(i) Any person whose interests may be directly affected may 
request in writing that the Commission close to public observation 
discussion of a matter which it has earlier decided to open as provided 
for in paragraph (e)(2) of this section.
    (ii) Such requests shall be captioned ``Request to Close __ (date) 
Commission meeting on item __ (number or description),'' shall state 
the reason(s) therefor, the name and address of the person making the 
request and, if desired, a telephone number.
    (iii) Ten copies of such requests should be filed with the Office 
of Secretary and Administration as soon as possible after the issuance 
of the notice of meeting to which the request pertains. However, a 
single copy of the request will be accepted. Requests to close meetings 
must be received by the Office of Secretary and Administration no later 
than the time scheduled for the meeting to which such a request 
pertains.
    (3) The Secretary shall retain one copy of timely requests and 
forward one copy to each Commissioner, one copy to the interested 
Office, and two copies to the Docket Section, one for entry in the 
appropriate docket file, if any, and one to be posted on the Public 
Notice Board located in that section as an attachment to the Notice of 
Meeting to which it pertains.
    (4) Pleadings replying to requests to open or close shall not be 
accepted.
    (5) Any Commissioner may require that the Commission vote upon the 
request to open or close. If the request is supported by the votes of a 
majority of the agency membership, notice of change in meeting shall be 
issued and the Secretary shall immediately notify the requester and, 
before the close of business the next working day, have posted such 
vote and other material required by paragraphs (e) and (f) of this 
section on the Commission's Public Notice Board.
    (6) If no Commissioner requests that a vote be taken on a request 
to open or close a Commission meeting, the Secretary shall by the close 
of the next working day after the meeting to which such request 
pertains certify that no vote was taken. The Secretary shall forward 
one copy of that certification to the requester and two copies of that 
certification to the Docket Section, one to be placed in the 
appropriate docket file, if any, and one to be posted on the Public 
Notice Board, where it will be displayed for one week.

0
43. Revise newly redesignated part 3010 to read as follows:

PART 3010--RULES OF PRACTICE AND PROCEDURE

Subpart A--General Provisions
Sec.
3010.100 Applicability and scope.
3010.101 Definitions.
3010.102 Commission dockets.
3010.103 Procedural schedules in docketed proceedings.
3010.104 Consolidation and severance of proceedings.
3010.105 Consideration of matters before the Commission.
3010.106 Presiding officers.
3010.107 Appeals from interlocutory rulings by presiding officers.
3010.108 Computation of time.
3010.109 Automatic closure of inactive dockets.
Subpart B--Filing Requirements
3010.120 Filing material with the Commission.
3010.121 Filing Online system.
3010.122 Material filed using method other than the Filing Online 
system.
3010.123 Rejected filings.
3010.124 Form and content of text-based documents filed with the 
Commission.
3010.125 Library references.
3010.126 Subscription.
3010.127 Service.
Subpart C--Participation in Commission Proceedings
3010.140 Opportunity for comment.
3010.141 Appeals of Postal Service determinations to close or 
consolidate post offices.
3010.142 Parties to hearings on the record.
3010.143 Representation of persons.
3010.144 Limitation of participation by investigative or prosecuting 
officers.
Subpart D--Notices, Motions, and Information Requests
3010.150 Notices.
3010.151 Notices and orders initiating proceeding.
3010.152 Notices initiating dockets for consideration of negotiated 
service agreements.
3010.160 Motions.
3010.161 Motions for waiver.
3010.162 Motions for continuances and extensions of time.

[[Page 9621]]

3010.163 Motions for late acceptance.
3010.164 Motions to strike.
3010.170 Information requests.
Subpart E--Proceedings Using Notice and Comment Procedures
3010.200 Applicability.
3010.201 Initiation of a proceeding.
3010.202 Participation in notice and comment proceedings.
3010.203 Commission action.
Subpart F--Proceedings With an Opportunity for a Hearing on the Record
3010.300 Applicability.
3010.301 Notice of proceeding.
3010.302 Prehearing conferences.
3010.303 Hearing format.
3010.304 Scheduling order.
3010.310 Discovery--general policy.
3010.311 Interrogatories for purpose of discovery.
3010.312 Requests for production of documents or things for purpose 
of discovery.
3010.313 Requests for admissions for purpose of discovery.
3010.320 Settlement conferences.
3010.321 Hearings.
3010.322 Evidence--general.
3010.323 Evidence--introduction and reliance upon studies and 
analyses.
3010.324 In camera orders.
3010.325 Depositions.
3010.330 Briefs.
3010.331 Proposed findings and conclusions.
3010.332 Oral argument before the presiding officer.
3010.333 Oral argument before the Commission.
3010.334 Commission decisions.
3010.335 Intermediate decisions.
3010.336 Exceptions to intermediate decisions.

    Authority:  39 U.S.C. 404(d); 503; 504; 3661.

Subpart A--General Provisions


Sec.  3010.100   Applicability and scope.

    (a) The rules in this part apply to practice before the Postal 
Regulatory Commission.
    (b) When a general rule conflicts with a rule governing a specific 
practice area, the rule governing the specific practice area shall take 
precedence.
    (c) The rules in this part shall be liberally construed to secure a 
just and speedy determination of issues. They permit the informal 
disposition of any matter for which formal procedures are not 
specifically required by statute.
    (d) Except when specifically required by statute, the rules in this 
part may be waived for good cause and appropriate alternative 
procedures may be prescribed.
    (e) The rules in this part shall be referred to as the ``rules of 
practice.'' Rules are to be cited using only the numbers and letters to 
the right of the decimal point. For example, paragraph (a) of ``Sec.  
3010.120 Filing material with the Commission'' shall be referred to as 
``section 120(a) of the rules of practice (39 CFR 3-1-.120(a))'' or as 
``rule 120(a)'' (39 CFR 3010.120(a)).


Sec.  3010.101   Definitions.

    (a) Act means title 39 of the United States Code, as amended.
    (b) Commission or Commissioner means, respectively, the Postal 
Regulatory Commission established by the Act or a member thereof. The 
Commission is located at 901 New York Avenue NW, Suite 200, Washington, 
DC 20268-0001. The Commission's regular business hours are from 8 a.m. 
to 4:30 p.m. Eastern Time, except for Saturdays, Sundays, and Federal 
holidays.
    (c) Complainant means a person who files a complaint with the 
Commission pursuant to section 3662 of the Act in the form and manner 
hereinafter prescribed.
    (d) Effective date, when used with respect to a notice, order, 
ruling, or other document issued by the Commission or an officer 
thereof (excluding documents issued for publication in the Federal 
Register), means the date the filing is posted on the Daily Listing 
page of the Commission's website unless otherwise specifically 
provided.
    (e) Hearing on the record means a hearing conducted under sections 
556 and 557 of title 5, U.S.C. (80 Stat. 386), as provided by section 
3661 of the Act or in any other proceeding noticed by the Commission 
for a hearing on the record.
    (f) Negotiated service agreement means a written contract, to be in 
effect for a defined period of time, between the Postal Service and a 
mailer, which provides for customer-specific rates or fees and/or terms 
of service in accordance with the terms and conditions of the contract. 
A rate associated with a negotiated service agreement is not a rate of 
general applicability.
    (g) Participant means any person who participates, or seeks to 
participate, in a proceeding before the Commission.
    (h) Party means the Postal Service, the Public Representative, a 
complainant, or a person who has intervened in a proceeding docketed 
for a hearing on the record before the Commission.
    (i) Person means an individual, a partnership, corporation, limited 
liability company, trust, unincorporated association, public or private 
organization, or governmental entity.
    (j) Petitioner means a person who is permitted by section 404(d)(5) 
of the Act to appeal to the Commission a determination of the Postal 
Service to close or consolidate a post office.
    (k) Postal Service means the United States Postal Service 
established by the Act.
    (l) Postal service refers to the delivery of letters, printed 
matter, or mailable packages, including acceptance, collection, 
sorting, transportation, or other functions ancillary thereto.
    (m) Presiding officer means a person designated by the Chairman of 
the Commission or the Commission to preside over a Commission 
proceeding or over a hearing held on the record before the Commission.
    (n) Proceeding means a Commission process initiated by the issuance 
of a notice or order that establishes a docket for the consideration of 
a matter before the Commission.
    (o) Product means a postal service with a distinct cost or market 
characteristic for which a rate or rates are, or may reasonably be, 
applied.
    (p) Public Representative or PR means an officer of the Commission 
designated to represent the interests of the general public in a 
Commission proceeding.
    (q) Rate or class of general applicability means a rate or class 
that is available to all mailers equally on the same terms and 
conditions.
    (r) Record means all documents and other material in a docket, 
including pleadings, testimony, exhibits, library references, 
transcripts of oral testimony or statements given or made during a 
hearing, comments, briefs, and in camera material, whether or not 
relied upon by the Commission or presiding officer in reaching a 
decision.
    (s) Secretary means the Secretary of the Commission, the Acting 
Secretary, or the Secretary's designee.
    (t) Small business concern means a for-profit business entity that:
    (1) Is independently owned and operated;
    (2) Is not dominant in its field of operation;
    (3) Has a place of business located in the United States;
    (4) Operates primarily within the United States or makes a 
significant contribution to the United States economy by paying taxes 
or using American products, materials, or labor; and
    (5) Together with its affiliates, qualifies as small in its primary 
industry under the criteria and size standards established by the Small 
Business Administration in 13 CFR 121.201 based on annual receipts or 
number of employees.
    (u) Website means the Commission's website located at https://www.prc.gov.

[[Page 9622]]

Sec.  3010.102   Commission dockets.

    (a) The Commission may initiate a proceeding by issuing a notice or 
order that establishes a docket in which a proceeding is to be 
conducted.
    (b) When permitted by statute or regulation, any person may seek 
the initiation of a proceeding by filing a request with the Commission 
that complies with the rules governing the type of proceeding being 
requested.
    (c) The Secretary shall maintain a docket for all matters that come 
before the Commission.
    (d)(1) The Secretary shall assign docket designations to each 
matter that comes before the Commission that reflect the nature of the 
matter, set forth the fiscal year in which the matter came before the 
Commission, and where applicable, the sequential number of the docket 
type within the fiscal year. Available docket types are:
    (i) Appeal of a Post Office Closing (A);
    (ii) Annual Compliance Report (ACR);
    (iii) Complaint (C);
    (iv) Competitive Product Rates (CP);
    (v) General (G);
    (vi) International Mail (IM);
    (vii) Mail Classification (MC);
    (viii) Market Test (MT);
    (ix) Change in the Nature of Postal Services (N);
    (x) Public Inquiry (PI);
    (xi) Market Dominant Rates (R);
    (xii) Rulemaking (RM);
    (xiii) Special Studies (SS); and
    (xiv) Annual Review of Tax Calculation (T).
    (2) The Commission may modify the list of docket types and document 
formats without prior notice.
    (e) The Secretary's assignment of a docket designation does not, by 
itself, establish a docket or initiate a proceeding. A docket is 
formally established and proceedings initiated only by the issuance of 
a Commission notice or order except for certain negotiated service 
agreements for which the authority to establish a docket and initiate a 
proceeding by issuance of a Secretary's notice has been delegated to 
the Secretary.
    (f) The substance of the matter presented to the Commission, not 
the assigned docket type, shall govern the procedural requirements for 
the docket.
    (g) Material filed with the Commission following the Secretary's 
assignment of a docket designation shall include the assigned docket 
designation.
    (h) Public material filed within a docket may be viewed at the 
Commission's Docket Section during regular business hours. Public 
documents filed in a docket that appear in electronic format may also 
be accessed remotely via the Commission's website. Confidential 
material filed under seal in a docket may only be accessed with prior 
authorization. Part 3011 of this chapter sets forth the procedures for 
obtaining such authorization. Persons who wish to access confidential 
material should contact the Commission's Docket Section for the 
appropriate mode for transmitting material filed under seal.
    (i) Active dockets may only be closed by the Commission.


Sec.  3010.103   Procedural schedules in docketed proceedings.

    Procedural schedules shall be established and may be periodically 
modified for each matter that is assigned a docket designation.


Sec.  3010.104   Consolidation and severance of proceedings.

    The Commission may order proceedings involving related issues or 
facts to be consolidated for consideration of any or all matters at 
issue in such proceedings. The Commission may sever proceedings which 
have been consolidated or order separate proceedings on any issue 
presented if it appears that separate proceedings will be more 
convenient, expeditious, or otherwise appropriate.


Sec.  3010.105   Consideration of matters before the Commission.

    (a) Unless it orders otherwise, the Commission shall sit en banc in 
all matters that come before it. In those proceedings in which a 
presiding officer is appointed, the Commission will continue to sit en 
banc, unless modified by Commission notice or order, with the presiding 
officer responsible for those matters within the scope of the presiding 
officer's authority.
    (b) A decision to establish a docket (other than certain negotiated 
service agreement dockets), close an active docket, or reach a final 
decision in any docket shall be by majority vote of the Commissioners 
then in office.


Sec.  3010.106   Presiding officers.

    (a) Designation of presiding officers. The Chairman, in 
consultation with all other Commissioners then in office, may designate 
any Commissioner, including the Chairman, to act as presiding officer 
over any matter before the Commission. Subject to approval by majority 
vote of all Commissioners then in office, the Chairman may also 
designate any member of the Commission's staff, an Administrative Law 
Judge employed by the Commission for a specific proceeding, or any 
person under contract with the Commission to serve as presiding officer 
over any matter before the Commission. Contracts between the Commission 
and any person who is to serve as a presiding officer must include 
provisions that incorporate the ethical requirements and standards 
applicable to Commission employees who serve as presiding officers.
    (b) Notice of designation. The Secretary shall issue a notice of 
any decision to designate a presiding officer. The notice shall 
identify the presiding officer and the date of appointment. Any 
expansion or limitation on the presiding officer's authority, or 
specific direction to a presiding officer (such as specific direction 
to issue an intermediate decision for the Commission's consideration) 
not specified in this section shall be included in the notice.
    (c) Authority delegated. Presiding officers shall have the 
authority, within the Commission's powers and subject to its published 
rules to:
    (1) Regulate the course of a proceeding before the Commission, 
including ruling on all matters not specifically reserved for the 
Commission, either orally during a hearing or by issuing written 
presiding officer rulings;
    (2) Regulate the course of a public hearing, including the 
recessing, reconvening, and adjournment thereof;
    (3) Issue presiding officer information requests;
    (4) Administer oaths and affirmations;
    (5) Issue subpoenas authorized by law (limited to Commissioners and 
Administrative Law Judges designated as presiding officers);
    (6) Rule upon offers of proof and receive relevant evidence;
    (7) Take or authorize that depositions be taken as provided in 
Sec.  3010.324;
    (8) Hold appropriate conferences before or during hearings and to 
rule on matters raised at such conferences, including prehearing 
conferences held pursuant to Sec.  3010.302;
    (9) Dispose of procedural requests or similar matters except for 
motions to dismiss or to otherwise make a final determination of a 
proceeding prior to the issuance of an intermediate decision as 
provided in paragraph (c)(11) of this section;
    (10) Certify, within their discretion, or upon direction of the 
Commission, any question to the Commission for its consideration and 
disposition including, without limitation, motions to dismiss or to 
otherwise make a final determination of a proceeding prior to the 
issuance of an intermediate decision as provided in paragraph (c)(11) 
of this section;

[[Page 9623]]

    (11) Submit an intermediate decision in accordance with Sec.  
3010.335, when directed; and
    (12) Take any other action necessary or appropriate to the 
discharge of the duties vested in them, consistent with the statutory 
or other authorities under which the Commission functions and with the 
rules, regulations, and policies of the Commission.
    (d) Conduct of hearings. It is the duty of the presiding officer to 
conduct fair and impartial hearings and to maintain order. Any 
disregard by participants or counsel of presiding officer rulings on 
matters of order or procedure shall be noted on the record, and where 
the presiding officer deems it necessary shall be made the subject of a 
special written report to the Commission. In the event that 
participants or counsel should be guilty of disrespectful, disorderly, 
or contumacious language or conduct in connection with any hearing, the 
presiding officer may immediately submit to the Commission a report 
thereon, together with recommendations, and in the presiding officer's 
discretion, suspend the hearing.
    (e) Disqualification. A presiding officer may withdraw from a 
proceeding when necessary due to disqualification, or may be removed by 
the Commission for good cause.


Sec.  3010.107   Appeals from interlocutory rulings by presiding 
officers.

    (a) General policy. The Commission will not review interlocutory 
rulings of a presiding officer except in extraordinary circumstances.
    (b) Appeals certified by the presiding officer. (1) Rulings of the 
presiding officer may be appealed to the Commission when the presiding 
officer certifies in writing that an interlocutory appeal is warranted. 
The presiding officer shall not certify an appeal unless the officer 
finds that:
    (i) The ruling involves an important question of law or policy 
concerning which there is substantial ground for difference of opinion; 
and
    (ii) An immediate appeal from the ruling will materially advance 
the ultimate termination of the proceeding or subsequent review will be 
an inadequate remedy.
    (2) A request for the presiding officer to certify an appeal shall 
be made by motion within five days after the presiding officer's ruling 
has been issued. The request shall set forth with specificity the 
reasons that a participant believes that an appeal meets the criteria 
of paragraphs (b)(1)(i) and (ii) of this section. Such requests shall 
also state in detail the legal, policy, and factual arguments 
supporting the participant's position that the ruling should be 
modified. If the appeal is from a ruling rejecting or excluding 
evidence, such request shall include a statement of the substance of 
the evidence which the participant contends would be adduced by the 
excluded evidence and the conclusions intended to be derived therefrom.
    (3) The presiding officer may request responsive pleadings from 
other participants prior to ruling upon the request to certify an 
appeal to the Commission.
    (c) Appeals not certified by the presiding officer. A participant 
may request Commission review of a presiding officer's decision denying 
certification of an appeal by motion within five days of the decision. 
If the presiding officer fails to act on a request for certification 
within 15 days of the issuance of the ruling in question, the 
participant seeking certification may apply for review by the 
Commission within 20 days of the ruling in question. Unless the 
Commission directs otherwise, its review of the application for review 
will be based on the record and pleadings filed before the presiding 
officer pursuant to paragraph (b) of this section.
    (d) Action by the Commission. (1) The Commission may dismiss an 
appeal certified by the presiding officer if it determines that:
    (i) The objection to the ruling should be deferred until the 
Commission's consideration of the entire proceeding; or
    (ii) Interlocutory review is otherwise not warranted or appropriate 
under the circumstances.
    (2) When the presiding officer declines to certify an appeal, the 
Commission will not permit an interlocutory appeal unless it 
determines:
    (i) That the presiding officer should have certified the matter;
    (ii) That extraordinary circumstances exist; and
    (iii) That prompt Commission decision is necessary to prevent grave 
detriment to the public interest.
    (3) If the Commission fails to issue an order permitting an 
interlocutory appeal within 15 days after the presiding officer 
certifies the appeal or a participant files an application for review, 
the appeal shall be deemed denied. If the Commission issues an order 
permitting an appeal, it may rule upon the merits of the appeal in that 
order or at a later time.
    (e) Effect of appeals. Unless the presiding officer or the 
Commission so orders, the certification of an appeal or the filing of 
an application for review shall not stay the proceeding or the 
effectiveness of any ruling.
    (f) Review at conclusion of proceeding. If the Commission does not 
entertain an interlocutory appeal of a presiding officer's ruling, 
objection to the ruling may be raised:
    (1) In briefs to the presiding officer or the Commission at the 
conclusion of hearings on the record; or
    (2) By the deadline for submission of comments or reply comments, 
whichever is later, in all other proceedings in which a hearing on the 
record is not held.


Sec.  3010.108   Computation of time.

    (a) In computing time periods, the term ``day'' shall mean calendar 
day.
    (b) Except as otherwise provided by law, in computing any period of 
time prescribed or allowed by this part, or by any notice, order, rule, 
presiding officer ruling, or regulation of the Commission or a 
presiding officer, the day of the act, event, or default after which a 
designated period of time begins to run is not to be included.
    (c) The last day of the period so computed is to be included unless 
it is a Saturday, Sunday, Federal holiday, or a day on which the 
Commission is not continuously open from 8 a.m. to 4:30 p.m. or on 
which the Commission's docketing system is not accessible continuously 
during that time. In any such case, the applicable time period shall 
run until the end of the next full business day that the Commission is 
open and its docketing system is accessible.
    (d) Except in proceedings to consider changes in the nature of 
postal services conducted under part 3020 of this chapter, in computing 
a period of time which is five days or less, all Saturdays, Sundays, 
Federal holidays, or days on which the Commission is not continuously 
open from 8 a.m. to 4:30 p.m. or on which the Commission's docketing 
system is not accessible continuously during that time are to be 
excluded.


Sec.  3010.109   Automatic closure of inactive dockets.

    (a) Automatic closure. The Commission shall automatically close a 
docket in which there has been no activity of record by any person for 
12 consecutive months, except dockets in which further action by the 
Commission is required by statute or regulation, or dockets for which 
the Commission finds good cause to remain open.
    (b) Notice of closure. Each month, the Commission shall post on its 
website a list of dockets that will be subject to automatic closure 
during the following

[[Page 9624]]

calendar month and will include the date on which the docket will 
automatically close.
    (c) Motions to stay automatic closure. (1) Persons, including the 
Postal Service or a Public Representative, may file a motion to stay 
automatic closure of a docket and request that the docket remain open 
for a specified term not to exceed 12 months. Motions to stay automatic 
closure must be filed at least 15 days prior to the automatic closure 
date.
    (2) The Commission may order a docket remain open for a specified 
term not to exceed 12 months and must file such order at least 15 days 
prior to the automatic closure date.
    (d) Motions to reopen automatically closed dockets. (1) If, at any 
time after a docket has been automatically closed, persons, including 
the Postal Service or a Public Representative, may file a motion to 
reopen the docket and must set forth with particularity good cause for 
reopening the docket.
    (2) The Commission may order a closed docket to be reopened, and 
must set forth the basis for reopening the docket.

Subpart B--Filing Requirements


Sec.  3010.120   Filing material with the Commission.

    (a) All material filed with the Commission shall be transmitted to 
the Commission in electronic format using the Filing Online system 
available over the internet through the Commission's website at http://www.prc.gov. The material must satisfy the Filing Online system 
compatibility requirements specified by the Secretary in the Filing 
Online User Guide, which shall also be accessible on the Commission's 
website. The exceptions to this rule are:
    (1) Material that cannot reasonably be converted to electronic 
format;
    (2) Confidential material filed under seal pursuant to part 3011 of 
this chapter shall not be transmitted electronically using the Filing 
Online system or any other electronic filing system unless authorized 
in advance by the Secretary;
    (3) Hardcopy material filed by persons who do not have the ability 
to submit material using the Filing Online system and who files not 
more than ten pages of material with the Commission in any one calendar 
year;
    (4) Hardcopy material filed by persons participating in proceedings 
that consider the appeal of a Postal Service determination to close or 
consolidate a post office, other than the Postal Service, that do not 
have the ability to submit material using the internet; and
    (5) Hardcopy material filed in docketed proceedings with the 
approval of the Secretary for good cause shown.
    (b) Material subject to the exceptions specified in paragraph (a) 
of this section may be filed either by mailing or by hand delivery 
during regular business hours to the Office of Secretary and 
Administration, Postal Regulatory Commission, 901 New York Avenue NW, 
Suite 200, Washington, DC 20268-0001. The Secretary has authority to 
approve the use of secure alternative electronic filing systems 
pursuant to Sec.  3011.203(c)(2) of this chapter for confidential 
material filed under seal. The Secretary also has authority to approve 
the use of alternative electronic filing systems for non-confidential 
material on a case-by-case basis when necessary to facilitate efficient 
docketing operations.


Sec.  3010.121   Filing Online system.

    (a) Only registered users of the Filing Online system may file 
material using the Filing Online system. Both temporary and permanent 
account registrations are available. Information for establishing a 
Filing Online account may be obtained on the Commission's website at 
http://www.prc.gov.
    (b) A temporary account allows a user to file materials 
immediately, but expires after 35 days. The purpose of a temporary 
account is to permit persons to file comments solicited by the 
Commission on a one-time or infrequent basis, or to file notices of 
intervention where there is limited time in which to establish a 
permanent account. A temporary account also may be used on an 
extraordinary basis for good cause shown.
    (c) A permanent account requires the authorization of the Secretary 
prior to use, but remains active until cancelled. Registration can be 
in the form of a principal account holder or as an agent of the 
principal account holder. When a principal account holder is 
representing the interests of another person, the authority of the 
principal account holder to represent the person on whose behalf the 
document is filed must be valid and current, in conformance with Sec.  
3010.143. The authority of an agent account holder to submit documents 
for a principal account holder must be valid and current. A principal 
account holder must promptly inform the Secretary of any change in the 
principal account holder's authority to represent participants in a 
proceeding or any change in the authority delegated to an agent account 
holder to submit documents on the principal account holder's behalf.
    (d) Only such material that conforms to the requirements of this 
part and any other applicable Commission rule or order shall be 
accepted for filing. In order for material to be accepted using the 
Filing Online system, it must be submitted to the Commission by a 
temporary or permanent account holder. Material submitted through the 
Filing Online system is considered to have been filed on the date 
indicated on the receipt issued by the Secretary. A filing is accepted 
when the Secretary, after review, posts the filing on the Daily Listing 
page of the Commission's website. Material received after the close of 
regular business hours or on a Saturday, Sunday, Federal holiday or 
other day on which the Commission is closed shall be deemed to be filed 
on the next regular business day.


Sec.  3010.122  Material filed using method other than the Filing 
Online system.

    (a) Hardcopy and other forms of material. A hardcopy document is 
filed on the date stamped by the Secretary. It is accepted when the 
Secretary, after review, posts the document on the Daily Listing page 
of the Commission's website. Any other form of material filed with the 
Commission must be accompanied by a hardcopy notice of filing, which 
describes the material being filed, identifies the person filing the 
material, and specifies the docket caption and docket number under 
which the material is being filed. This material is accepted when the 
Secretary, after review, posts the notice of filing on the Daily 
Listing page of the Commission's website. Material received after the 
close of regular business hours or on a Saturday, Sunday, or Federal 
holiday shall be deemed to be filed on the next regular business day.
    (b) Computer media. With the prior approval of the Secretary, a 
participant may submit a document on a compact disk or other media or 
method approved in advance by the Secretary, simultaneously with the 
filing of one printed original hardcopy, provided that the stored 
document is a file generated in either Acrobat (pdf), Word, 
WordPerfect, or Rich Text Format (rtf).


Sec.  3010.123   Rejected filings.

    Any filing that does not comply with an applicable Commission rule 
or order may be rejected. Any filing that is rejected is deemed not to 
have been filed with the Commission. If a filing is rejected, the 
Secretary will attempt to notify the person submitting the filing, 
indicating the reason(s) for rejection. Acceptance for filing shall not 
waive any failure to comply with this part, and

[[Page 9625]]

such failure may be cause for subsequently striking all or any part of 
any document. Any controversies concerning the acceptability of a 
filing shall be resolved after review by the Office of General Counsel.


Sec.  3010.124   Form and content of text-based documents filed with 
the Commission.

    (a) Equivalent paper size. Each document filed in paper form shall 
be produced on letter-size paper, 8 to 8\1/2\ inches wide by 10\1/2\ to 
11 inches long, with left- and right-hand margins not less than 1 inch 
and other margins not less than 0.75 inches, except that tables, charts 
or special documents attached thereto may be larger if required, 
provided that they are folded to the size of the document to which they 
are attached. For a multiple page document, the preference is for the 
document to be not stapled, hole-punched, or bound, but may be fastened 
together by paper or binder clip, or equivalent. If the document is 
bound, it shall be bound on the left side. Each document filed in 
electronic form must be capable of meeting the above requirements when-
printed from a text-based pdf formatted file version of the document. 
Consideration may be given to alternative file formats where necessary.
    (b) Line spacing and font. The text of documents filed with the 
Commission shall be formatted in not less than one and one-half spaced 
lines except that tables of content, captions, tables, footnotes and 
quotations may be single-spaced. Documents shall be submitted in a san-
serif font such as Arial (or substantially equivalent). Body text shall 
be 12 point, except that footnotes and quotations may appear as small 
as 10 point. Where necessary, special text such as in tables or charts, 
may appear as small as 9 point. These requirements may be waived on a 
case-by-case basis, based on both substantial compliance and the 
readability of the document.
    (c) Caption, title, page numbering, and table of contents. The 
caption of each document filed with the Commission in any proceeding 
shall clearly show the docket designation and title of the proceeding 
before the Commission. The title of such document shall identify each 
participant on whose behalf the filing is made and include a brief 
description of the document or the nature of the relief sought therein 
(e.g., motion for extension, brief on exceptions, complaint, notice of 
intervention, answer to complaint). Each page, after the first page, of 
a document shall be consecutively numbered. Unique page numbers are 
permissible for introductory material such as cover pages and table of 
contents, and for appendixes. Each document filed with the Commission 
consisting of 20 or more pages shall include a table of contents with 
page references. For briefs also see Sec.  3010.330.
    (d) Improper matter. Defamatory, scurrilous, or unethical matter 
shall not be included in any document filed with the Commission.
    (e) Exception for appeals of post office closings and 
consolidations. The requirements of paragraphs (a) through (c) of this 
section are encouraged, but optional, for participants other than the 
Postal Service in proceedings to consider the appeal of a Postal 
Service determination to close or consolidate a post office conducted 
pursuant to part 3021 of this chapter.


Sec.  3010.125  Library references.

    (a) In general. A library reference is a special type of filing, 
which is accepted by the Commission for the convenience of the person 
filing material that is not conducive to typical text based filings. 
The filing of a document as a library reference is appropriate when 
interest in the material is limited, when the material constitutes a 
secondary source that provides background or support for a position or 
matter, or when references to, or identification of, the material filed 
as a library reference would be facilitated. Examples of materials that 
are appropriate for filing as library references include electronic 
spreadsheets, workpapers in support of primary documents, pre-existing 
materials, secondary sources such as books or materials that are not 
readily available elsewhere, or other foundational materials filed in 
support of a primary document. Whenever possible, library references 
are to be filed in electronic format. The Commission reserves the right 
to refuse acceptance of any library reference material in its docket 
room and its right to take other action to ensure all persons' ability 
to obtain access to the material.
    (b) Categorization of library references. To the extent possible, 
material filed as a library reference shall be identified and referred 
to by participants in terms of the following categories:
    (1) Category 1--Reporting Systems Material (consisting of library 
references relating to the Postal Service's statistical cost and 
revenue reporting systems, and their primary outputs);
    (2) Category 2--Witness Foundational Material (consisting of 
material relating to the testimony of specific witnesses, primarily 
that which is essential to the establishment of a proper foundation for 
receiving into evidence the results of studies and analyses);
    (3) Category 3--Reference Material (consisting of previously 
published material provided for the convenience of the reader, such as 
books, chapters or other portions of books, articles, reports, manuals, 
handbooks, guides, and contracts);
    (4) Category 4--Material Provided in Response to Discovery 
(consisting of material provided in response to discovery requests);
    (5) Category 5--Disassociated Material (consisting of material 
filed at the request of another, from which the filing party wishes to 
be disassociated, is not vouching for or sponsoring the material 
provided);
    (6) Category 6--All Other Material (consisting of library 
references not fitting any of the other categories).
    (c) Labeling. Material filed as a library reference shall be 
labeled in a manner consistent with standard Commission notation and 
any other conditions the Commission or presiding officer establishes. 
Each library reference shall be identified by a unique identification 
number. The standard format for an identification number shall be 
``[abbreviated name of person filing]-LR-[docket identification]-
[optional: NP][sequential number by person filing].'' For example, 
``PRC-LR-CP2010-1-NP8'' read right to left would be the eighth (8) non-
public (NP) item filed in Docket No. (CP2010-1) as a library reference 
(LR) by the Postal Regulatory Commission (PRC). Alternative formats may 
be used when required for clear identification of the material being 
filed.
    (d) Filing procedure. Participants filing material as a library 
reference shall file contemporaneous written notice of this action. The 
notice shall:
    (1) Set forth the reason(s) why the material is being designated as 
a library reference;
    (2) Identify the category into which the material falls and 
describe in detail what the material consists of or represents, noting 
matters such as the presence of survey results;
    (3) Explain in detail how the material relates to the participant's 
case or to issues in the proceeding;
    (4) Identify authors or others materially contributing to 
substantive aspects of the preparation or development of the library 
reference;
    (5) Identify the documents (such as testimony, exhibits, and an 
interrogatory) or request to which the library reference relates, to 
the extent practicable;
    (6) Identify other library references or testimony relied upon or 
referred to in

[[Page 9626]]

the designated material, to the extent practicable;
    (7) Indicate whether the library reference is an update or revision 
to another library reference and, if it is, clearly identify the 
predecessor material; and
    (8) To the extent feasible, for proceedings scheduled for a hearing 
on the record, identify portions expected to be entered into the record 
and the expected sponsor (if the participant filing a library reference 
anticipates seeking, on its own behalf, to enter all or part of the 
material contained therein into the evidentiary record). To the extent 
feasible, in all other proceeding types, identify portions relevant to 
the proceeding.
    (e) Optional preface or summary. Inclusion of a preface or summary 
in a library reference addressing the matters set out in paragraphs 
(d)(1) through (8) of this section is encouraged, but optional.


Sec.  3010.126   Subscription.

    (a) Each document filed with the Commission shall be subscribed. 
Subscription constitutes a certification that the person filing the 
document has read the document being filed; that the person filing the 
document knows the contents thereof; that if executed in any 
representative capacity, the document has been subscribed in the 
capacity specified in the document with full power and authority so to 
do; that to the best of the person's knowledge, information and belief 
every statement contained in the document is true and no such 
statements are misleading; and that such document is not filed for 
purposes of delay. This requirement extends to notices of filing for 
library references or other material, including the underlying library 
references or other material to the extent referenced in the notice of 
filing.
    (b) For a document or notice of filing filed via the Filing Online 
system, the subscription requirement is met when the document or notice 
of filing is filed with the Commission.
    (c) For a hardcopy document or hardcopy notice of filing, the 
subscription requirement is met by signing in ink, by affixing an 
electronic signature, or by including the typed name of the individual, 
authorized office, employee, attorney, or other representative who 
files the document or notice.


Sec.  3010.127   Service.

    (a) Material filed by a person participating in a docket shall be 
deemed served on all other persons (except those served by the 
Secretary pursuant to paragraph (b) of this section) who are 
participating in the docket as of the date the material, or notice of 
the material's filing is posted by the Secretary on the Commission's 
website.
    (b) The Secretary shall provide service by First-Class Mail, which 
is deemed complete upon mailing, to the following persons upon a 
demonstration of the inability to effectively utilize the Filing Online 
system (until alternative arrangements are established):
    (1) Petitioners in dockets appealing Postal Service determinations 
to close or consolidate post offices conducted pursuant to part 3021 of 
this chapter;
    (2) Parties that have intervened in proceedings docketed for a 
hearing on the record; and
    (3) Where necessary for fairness and protection of due process, an 
active participant in a proceeding affecting the substantial rights of 
that participant.
    (c) The Secretary shall maintain a current service list in each 
proceeding docketed for a hearing on the record which shall include the 
parties that have intervened in that proceeding and up to two 
individuals designated for physical service of documents, if necessary, 
by each party. The service list for each current proceeding will be 
available on the Commission's website at http://www.prc.gov. Each party 
who has internet access shall be responsible for ensuring that its 
listing on the Commission's website is accurate and should promptly 
notify the Secretary of any errors. The Secretary or the Secretary's 
designee shall be responsible for ensuring the accuracy of listings of 
any parties who lack internet access.

Subpart C--Participation in Commission Proceedings


Sec.  3010.140   Opportunity for comment.

    Except for proceedings involving an appeal of a Postal Service 
determination to close or consolidate a post office, any person may 
submit comments in proceedings before the Commission. An opportunity to 
provide a reply to comments shall be at the discretion of the 
Commission, or the presiding officer if one is appointed. The scope and 
timing of comments and reply comments may be specified by notice, 
order, or presiding officer's ruling. There is no requirement to 
intervene in a proceeding as a party in order to submit comments.


Sec.  3010.141   Appeals of Postal Service determinations to close or 
consolidate post offices.

    (a) Only a person served by the post office in which the Postal 
Service has issued a decision to close or consolidate a post office may 
file an appeal of the decision with the Commission.
    (b) Any other person served by the same post office under review 
who desires to participate in the proceeding, or any Postmaster, 
counsel, agent, or other person authorized or recognized by the Postal 
Service as such person's representative, may participate in an appeal 
by submitting comments.
    (c) Except for persons identified in paragraph (a) or (b) of this 
section, the designated Public Representative, and the Postal Service, 
no other person may participate in a proceeding to consider the appeal 
of a Postal Service determination to close or consolidate a post 
office.
    (d) Opposition to a person asserting eligibility for participation 
shall be made within three days of that person's first filing in the 
proceeding.


Sec.  3010.142   Parties to hearings on the record.

    (a) Parties to a proceeding. Any interested person may become a 
party to proceedings docketed for a hearing on the record by filing a 
notice of intervention. The Postal Service, and the Public 
Representative are automatically deemed parties in such proceedings 
without the need to file a notice of intervention. Persons who file a 
complaint are also automatically deemed a party to a complaint 
proceeding without the need to file a notice of intervention. Parties 
may be provided an opportunity to participate in discovery, file 
testimony, participate in the written or oral examination of witnesses, 
file briefs, or present oral argument before the Commission or the 
presiding officer. Persons that have not intervened may participate in 
a proceeding docketed for a hearing on the record, but such 
participation shall be limited to providing comments pursuant to Sec.  
3010.140 unless otherwise directed.
    (b) Notices of intervention. A notice of intervention shall clearly 
and concisely set forth the nature and extent of the intervenor's 
interest in the issues to be decided, including the postal services 
utilized by the intervenor giving rise to the intervenor's interest in 
the proceeding, and to the extent known, the position of the intervenor 
with regard to the proposed changes in postal rates, fees, 
classifications, or services, or the subject matter of the complaint, 
as described in the notice of the proceeding. Such notice shall state 
whether or not the intervenor requests a hearing or in lieu thereof, a 
conference, and whether or not the intervenor intends to actively

[[Page 9627]]

participate in a hearing. Such notice shall also include on page one 
thereof the name and full mailing address of no more than two persons 
who are to receive service, when necessary, of any documents relating 
to such proceeding.
    (c) Form and time of filing. Notices of intervention shall be filed 
no later than the date fixed for such filing by the Commission or its 
Secretary, unless for good cause shown, the Commission authorizes a 
late filing. Without a showing for good cause, late intervenors shall 
be subject to and may not challenge decisions by the Commission or 
presiding officer made prior to acceptance of the request for late 
intervention.
    (d) Oppositions. (1) Except as otherwise provided in paragraph 
(d)(2) of this section, oppositions to notices of intervention may be 
filed by any party in the proceeding no later than ten days after the 
notice of intervention is filed.
    (2) Oppositions to notices of interventions in proceedings 
considering the change in the nature of a postal service pursuant to 
part 3020 of this chapter may be filed by any party in the proceeding 
no later than three days after the notice of intervention is filed.
    (3) Pending Commission action, an opposition to intervention shall, 
in all proceedings except those considering the change in the nature of 
a postal service pursuant to part 3020 of this chapter, delay on a day-
for-day basis the date for responses to discovery requests filed by 
that intervenor.
    (e) Effect of intervention. A person filing a notice of 
intervention shall be a party to the proceeding subject, however, to a 
determination by the Commission, either in response to an opposition, 
or sua sponte, that party status is not appropriate under the Act. 
Intervenors are also subject to the right of the Commission or the 
presiding officer as specified in Sec.  3010.104 to require two or more 
intervenors having substantially like interests and positions to join 
together for purposes of service of documents, presenting evidence, 
making and arguing motions and objections, propounding discovery, 
cross-examining witnesses, filing briefs, and presenting oral arguments 
to the Commission or presiding officer. No intervention shall be deemed 
to constitute a decision by the Commission that the intervenor is 
aggrieved for purposes of perfecting an appeal of any final order of 
the Commission.


Sec.  3010.143  Representation of persons.

    (a) By whom. An individual may participate on the individual's own 
behalf; a member of a partnership may represent the partnership; and an 
officer may represent a corporation, limited liability company, trust, 
unincorporated association, or governmental entity. A person may be 
represented in a proceeding by an attorney at law admitted to practice 
and in good standing before the Supreme Court of the United States, the 
highest court of any State or Territory of the United States or the 
District of Columbia, or the Court of Appeals or the District Court for 
the District of Columbia.
    (b) Authority to act. When an officer or an attorney acting in a 
representative capacity appears in person, submits a document to the 
Commission using the Filing Online system as a principal account 
holder, or signs a paper filed with the Commission, the personal 
appearance, online submission, or signature, shall constitute a 
representation to the Commission that that individual is authorized to 
represent the particular person on whose behalf the individual acts. 
Any individual appearing before or transacting business with the 
Commission in a representative capacity may be required by the 
Commission or the presiding officer to file evidence of the 
individual's authority to act in such capacity.
    (c) Notice of appearance and withdrawal of appearance. An 
individual intending to appear before the Commission or its presiding 
officer in a representative capacity in a proceeding before the 
Commission shall file with the Commission a notice of appearance in the 
form prescribed by the Secretary unless that individual is named in an 
initial filing of the person whom the individual represents as the 
individual to whom communications from the Commission in regard to the 
filing are to be addressed. An individual whose authority to represent 
a person in a specific Commission proceeding has been terminated shall 
file a timely notice of withdrawal of appearance with the Commission.
    (d) Standards of conduct. Individuals practicing before the 
Commission shall conform to the standards of ethical conduct required 
of practitioners by the District of Columbia Rules of Professional 
Conduct.
    (e) Disqualification and suspension. After hearing, the Commission 
may disqualify and deny, temporarily or permanently, the privilege of 
appearing and practicing before it in any way to any individual who is 
found not to possess the requisite qualifications, or to have engaged 
in unethical or improper professional conduct. Contumacious conduct at 
any hearing before the Commission or its presiding officer shall be 
grounds for exclusion of any individual from such hearing and for 
summary suspension for the duration of the hearing by the Commission or 
the presiding officer.


Sec.  3010.144   Limitation of participation by investigative or 
prosecuting officers.

    No officer, employee, or agent of the Commission who participates 
in a proceeding before the Commission as an attorney or witness or who 
actively participates in the preparation of evidence or argument 
presented by such persons, shall participate or advise as to the 
intermediate decision or Commission decision in that proceeding.

Subpart D--Notices, Motions, and Information Requests


Sec.  3010.150   Notices.

    (a) Purpose. A notice is a document that announces a past, present, 
or future, event or occurrence. A notice shall not be combined with a 
request for any order or ruling that otherwise should be presented by 
motion. The Commission or presiding officer shall not combine a notice 
with a Commission order or a presiding officer's ruling, unless the 
title of the document clearly states the intent of document being 
issued.
    (b) Filing requirements. The title of any document filed as a 
notice shall contain the word ``notice.'' Additional requirements for 
the content of specific forms of notices are provided throughout 
chapter III of this title, where appropriate.


Sec.  3010.151   Notices and orders initiating proceeding.

    (a) Upon a finding that a matter is properly before the Commission, 
the Commission shall issue a notice and order initiating the proceeding 
to consider that matter. The rules in this section apply to all 
proceedings except for:
    (1) Proceedings to consider certain negotiated service agreements, 
which are noticed pursuant to Sec.  3010.152; and
    (2) Proceedings to consider the appeal of a Postal Service 
determination to close or consolidate post office, pursuant to part 
3021 of this chapter.
    (b) The notice and order shall:
    (1) Describe the general nature of the proceeding, i.e., a 
complaint, a rulemaking, a change in rates, a change in the product 
lists, a change in the nature of postal services, etc.;
    (2) Identify the person(s) requesting the initiation of the docket, 
if applicable;

[[Page 9628]]

    (3) Refer to the legal authority under which the proceeding is to 
be conducted;
    (4) Provide a sufficient description of the matter being considered 
such that the reader is informed of the substance of the proceeding, 
and provide direction as to where further information may be obtained;
    (5) Establish the docket under which the proceeding will be 
conducted;
    (6) Assign a Public Representative to represent the interests of 
the public, when required;
    (7) Describe how interested persons may participate in the 
proceeding;
    (8) Establish procedural deadlines, if known; and
    (9) Include such other information as the Commission deems 
appropriate.
    (c) For proceedings docketed for a hearing on the record pursuant 
to subpart F of this part, the notice and order shall also:
    (1) Specify the date by which notices of intervention and requests 
for hearing must be filed;
    (2) Specify the date, time, and place of a prehearing conference or 
first public hearing, if known; and
    (3) Include the procedural schedule provided for under Sec.  
3020.110 of this chapter in proceedings to consider changes in the 
nature of postal services pursuant to part 3020 of this chapter.
    (d) The document shall be published in the Federal Register.


Sec.  3010.152   Notices initiating dockets for consideration of 
negotiated service agreements.

    (a) The Secretary shall issue a notice to initiate a docket for 
each Postal Service request which proposes the addition or removal of a 
negotiated service agreement from the market dominant or the 
competitive product list, or the modification of an existing product 
currently appearing on the market dominant or the competitive product 
list. Multiple requests may be combined into a single notice.
    (b) The document shall specify:
    (1) The docket number associated with each Postal Service request;
    (2) The title of each Postal Service request;
    (3) The request's acceptance date;
    (4) The legal authority cited by the Postal Service for each 
request;
    (5) The appointment of an officer of the Commission to represent 
the interests of the general public in the proceeding; and
    (6) The comment deadline pertaining to each request.
    (c) The document shall be published in the Federal Register.


Sec.  3010.160   Motions.

    (a) Motions. A motion is an application for a Commission order or 
ruling by a presiding officer. Motions may be presented by any person 
who participates in, or who seeks to participate in, a proceeding 
before the Commission. Motions may be supported by declarations, 
exhibits, library references, attachments, and other submissions. 
Motions shall set forth with particularity the ruling or relief sought, 
the grounds therefore and the statutory and other authorities relied 
upon. Motions shall be in writing, except that after a hearing has 
convened, motions may be made orally to the Commission or to the 
presiding officer if one has been appointed.
    (b) Responses to motions. A response to a motion may be presented 
by any person who participates in, or who seeks to participate in, a 
proceeding before the Commission. Responses shall state with 
particularity the position of the person submitting the response with 
regard to the relief or ruling requested in the motion and the grounds 
therefore and the statutory and other authorities relied upon. 
Responses to written motions must be filed within seven days after the 
motion is filed and posted on the Commission's website, or such other 
deadline as the rules of practice provide or as the Commission or 
presiding officer may establish. Responses to oral motions made during 
a hearing may be made orally to the Commission or to the presiding 
officer if one has been appointed, unless directed to reduce the 
response to writing for subsequent consideration.
    (c) Replies. Unless the Commission or presiding officer otherwise 
provides, no reply to a response or any further responsive document may 
be filed.
    (d) Rulings. The Commission or the presiding office may rule on a 
motion in writing, or orally during a hearing. A ruling may be issued 
immediately, without waiting for a response, whenever the person 
propounding the motion asserts that all affected persons have been 
contacted and agree not to oppose the motion or when the Commission in 
its discretion determines that immediate action is appropriate.


Sec.  3010.161   Motions for waiver.

    (a) Any person may file a motion requesting that any requirement 
imposed by regulation, order, ruling, or Commission, Chairman, or 
presiding officer request be waived.
    (b) Motions for waiver will not be entertained unless timely filed 
so as to permit disposition of the motion prior to the date specified 
for the requirement for which waiver is requested. The pendency of a 
motion for waiver does not excuse any person from timely meeting the 
requirement for which the waiver is requested.
    (c) Motions for waiver may be granted in whole or in part to the 
extent permitted by law upon a showing of good cause and that such 
waiver will be consistent with the public interest and will not unduly 
prejudice the interests of other participants.


Sec.  3010.162   Motions for continuances and extensions of time.

    (a) Any person may file a motion requesting the continuance of a 
hearing or the extension of time for any deadline.
    (b) The motion should be filed before the expiration of the 
specified time for the deadline for preforming the act for which the 
continuance or extension is requested.
    (c) The motion shall only be granted upon consideration of the 
potential adverse impact, if any, on other participants and the overall 
impact on the procedural schedule.


Sec.  3010.163   Motions for late acceptance.

    (a) Any person may file a motion requesting that the Commission or 
the presiding officer accept any material filed by that person after an 
established filing deadline.
    (b) The motion should be filed prior to or concurrent with the 
filing of any material filed after the established deadline.
    (c) The Commission or the presiding officer are under no obligation 
to further consider any material filed after an established deadline, 
unless late acceptance is approved by the Commission or presiding 
officer. Posting late filed material to the Commission's website alone 
is not an indication that the material will be considered.


Sec.  3010.164   Motions to strike.

    (a) Any person may, by motion, request that any material be 
stricken from consideration in any proceeding.
    (b) Motions to strike are requests for extraordinary relief that 
must be supported with justification for why the material should be 
stricken from consideration. Motions to strike shall not be used as a 
substitute for rebuttal testimony, briefs, comments, or any other form 
of pleading.


Sec.  3010.170   Information requests.

    (a) An information request is an informal discovery mechanism used 
at the discretion of the Commission, the Chairman of the Commission, or 
a presiding officer to obtain information that is likely to materially 
assist the

[[Page 9629]]

Commission in the conduct of its proceedings, in the preparation of its 
reports, or in the performance of its functions under title 39 of the 
United States Code.
    (b) Information requests may be used to:
    (1) Require the Postal Service in any proceeding, or any party to a 
Commission hearing on the record, to provide any information, and 
associated documents or things in its possession or control, or any 
information, and any associated documents or things that it can obtain 
through reasonable effort and expense; or
    (2) Request that any person other than the Postal Service or a 
party to a Commission hearing on the record provide any information, 
and any associated documents or things that it can obtain through 
reasonable effort and expense.
    (c) Information that can be sought by information request includes, 
but is not limited to, explanations, confirmations, factual 
descriptions, data, documents, and other materials. Documents refer to 
hard copy or electronic conveyance of information and may be stored in 
any medium from which information can be obtained either directly or, 
if necessary, after translation into a reasonably usable form. 
Documents include, but are not limited to, writings, notes, graphs, 
charts, data files, emails, drawings, photographs, and images. 
Materials include all matter, other than documents, that convey 
information.
    (d) Information requests shall describe the information, documents, 
or things sought; shall briefly explain the reason for the request; and 
shall specify a date by which the response(s) shall be due.
    (e) Any person may request the issuance of an information request 
by motion. The motion shall list the information, documents, or things 
sought; shall explain the reasons the information request should be 
issued; and shall demonstrate why the information sought is relevant 
and material to the Commission's duties under title 39 of the United 
States Code. Upon consideration of the motion and any responses, the 
Commission, the Chairman of the Commission, or presiding officer may 
issue an information request that includes some or all of the proposed 
questions or modified versions of some or all of the proposed 
questions. Motions that do not result in the issuance of an information 
request prior to the Commission's final decision in the docket shall be 
deemed denied.

Subpart E--Proceedings Using Notice and Comment Procedures


Sec.  3010.200   Applicability.

    (a) Except as otherwise provided in this section, the Commission 
shall conduct proceedings in conformance with the notice and comment 
procedures of this subpart whenever:
    (1) The Commission is considering the issuance, amendment, or 
repeal of any Commission rule or regulation;
    (2) The Commission is seeking information to inform potential 
future Commission action with or without the issuance of a final 
decision; or
    (3) The Commission in the exercise of its discretion determines it 
is appropriate.
    (b) Unless the Commission orders otherwise, the rules in this 
subpart shall not apply to proceedings governed by subpart F of this 
part (Proceedings with an Opportunity for a Hearing on the Record). The 
rules in this subpart also shall not apply to the following parts of 
subchapter D of chapter III (Special Rules of Practice for Specific 
Proceeding Types) of this title: part 3020 (Rules Applicable to 
Requests for Changes in the Nature of Postal Services) of this chapter, 
part 3021 (Rules for Appeals of Postal Service Determinations to Close 
or Consolidate Post Offices) of this chapter, part 3022 (Rules for 
Complaints) of this chapter, part 3023 (Rules for Rate or Service 
Inquiries) of this chapter, and part 3024 (Special Rules for Complaints 
Alleging Violations of 39 U.S.C. 404a) of this chapter.


Sec.  3010.201   Initiation of a proceeding.

    (a) The Commission may on its own motion initiate a proceeding 
under this subpart by issuing a notice and order initiating proceeding 
pursuant to Sec.  3010.151.
    (b)(1) Any person may request the initiation of a proceeding under 
this subpart by filing a petition with the Commission pursuant to the 
filing requirements of subpart B of this part. The petition shall:
    (i) Provide the name, address, phone number and other pertinent 
contact information of the requesting person;
    (ii) Identify the subject matter of the petition;
    (iii) Provide specific proposals, including specific language, in 
regard to the subject matter of the petition;
    (iv) Provide all facts, views, arguments, and data deemed to 
support the action requested; and
    (v) Describe the impact of the proposal on the person filing the 
petition, the Postal Service, the mailing community, and the 
Commission, as applicable.
    (2) Upon consideration of the petition, the Commission in its 
discretion may initiate a proceeding under this subpart by issuing a 
notice and order initiating proceeding pursuant to Sec.  3010.151, 
reject the petition, or defer a decision whether to grant or reject the 
petition. The Commission shall provide an explanation for the rejection 
or delay in consideration of any petition.
    (c) Subparts A, B, C, and D of this part apply to the initiation 
and conduct of proceedings under this subpart E.


Sec.  3010.202  Participation in notice and comment proceedings.

    (a) Comments. The primary method for participating in notice and 
comment proceedings is through the filing of comments in accordance 
with Sec.  3010.140. The notice and order initiating proceeding filed 
pursuant to Sec.  3010.151 shall provide the deadline for filing 
comments, and if provided for, reply comments.
    (b) Information requests. The Commission, Chairman, or presiding 
officer may in its or their own discretion or, if requested by an 
interested person by motion, issue information requests pursuant to 
Sec.  3010.170.
    (c) Technical conferences. The Commission, Chairman, or presiding 
officer may in its or their own discretion or, if requested by an 
interested person by motion, convene one or more off the record 
technical conferences to consider the matters being considered.
    (d) Oral presentations. The Commission, Chairman, or presiding 
officer may in its or their own discretion or, if requested by an 
interested person by motion, permit oral presentations regarding the 
matters being considered.
    (e) Other procedures. The Commission, the Chairman, or presiding 
officer may order additional procedures as appropriate.


Sec.  3010.203   Commission action.

    (a) The Commission shall consider all relevant comments and 
material of record before taking any final action. Any final decision 
which includes the issuance, amendment, or repeal of a rule or 
regulation, shall, at a minimum, publish the final rule or regulation 
in the Federal Register.
    (b) Any issuance, amendment, or repeal of a rule or regulation will 
be made effective not less than 30 days from the time it is published 
in the Federal Register except as otherwise specified in paragraph (c) 
of this section. If the order issuing, amending, or repealing a rule 
does not specify an effective date, the effective date shall be 30 days 
after the date on which the Commission's order is published in the

[[Page 9630]]

Federal Register, unless a later date is required by statute or is 
otherwise specified by the Commission.
    (c) For good cause shown by publication with the rule, any 
issuance, amendment, or repeal of a rule may be made effective in less 
than 30 days from the time the Commission's order is published in the 
Federal Register.
    (d) Rules involving any military, naval or foreign affairs function 
of the United States; matters relating to agency management or 
personnel, public property, loans, grants, benefits or contracts; rules 
granting or recognizing exemption or relieving restriction; rules of 
organization, procedure or practice; or interpretative rules; and 
statements of policy may be made effective without regard to the 30-day 
requirement.

Subpart F--Proceedings With an Opportunity for a Hearing on the 
Record.


Sec.  3010.300   Applicability.

    The Commission shall conduct proceedings on the record with the 
opportunity for a hearing subject to this subpart whenever:
    (a) The Commission determines that a complaint filed under part 
3022 of this chapter raises one or more material issues of fact or law 
in accordance with Sec.  3022.30 of this chapter and a proceeding on 
the record with the opportunity for a hearing is necessary;
    (b) The Commission determines that the streamlined procedures in 
part 3020 of this chapter applicable to a Postal Service request to 
change the nature of postal services which will generally affect 
service on a nationwide or substantially nationwide basis are not 
appropriate; or
    (c) The Commission in the exercise of its discretion determines it 
is appropriate.


Sec.  3010.301   Notice of proceeding.

    Whenever the Commission determines that a proceeding will be held 
on the record with an opportunity for a hearing under this part, it 
shall publish notice of the proceeding in the Federal Register pursuant 
to Sec.  3010.151.


Sec.  3010.302   Prehearing conferences.

    (a) Initiation and purposes. The Commission or the presiding 
officer, if one has been appointed, may direct the parties in a 
proceeding to appear for a prehearing conference for the purposes of 
considering all possible ways of expediting the proceeding, including 
those in paragraph (e) of this section. Prehearing conference 
procedures shall be rigorously pursued by all parties.
    (b) Who presides. The presiding officer, if one has been 
designated, shall preside over prehearing conferences. If a presiding 
officer has not been designated or is otherwise unavailable for a 
prehearing conference, then the ranking Commissioner in attendance 
shall be considered the presiding officer for that conference. The 
presiding officer shall open and close each prehearing conference 
session and shall be responsible for controlling the conduct of the 
conference.
    (c) Informal off-the-record procedures. In order to make the 
prehearing conference as effective as possible, the presiding officer 
may direct that conferences be held off the record, without the 
presiding officer present. Informal off-the-record conferences shall be 
presided over by the Public Representative or such other person as the 
parties may select. At off-the-record conferences, parties shall be 
expected to reach agreement on those matters, which will expedite the 
proceeding, including the matters specified in the notice of the 
prehearing conference, in the ruling of the presiding officer directing 
that the off-the-record conference be held, and in paragraph (e) of 
this section. A report on the results of off-the-record conferences 
shall be made to the presiding officer on the record at a time 
specified by the presiding officer. The presiding officer shall then 
determine the further prehearing procedures, if any, to be followed.
    (d) Required preparation and cooperation of all parties. All 
parties in any proceeding before the Commission are required and 
expected to come to prehearing conferences fully prepared to discuss in 
detail and resolve all matters, such as those specified in paragraph 
(e) of this section, in the notice of the prehearing conference, and in 
such other notice or agenda as may have been issued by the Commission 
or the presiding officer. All parties are required and expected to 
cooperate fully at all stages of the proceeding to achieve these 
objectives through thorough advance preparation for the prehearing 
conference, including informal communications between the parties, 
requests for discovery and appropriate discovery procedures at the 
earliest possible time and no later than at the prehearing conference, 
and the commencement of preparation of evidence and cross-examination. 
The failure of any party to appear at the prehearing conference or to 
raise any matters that could reasonably be anticipated and resolved at 
the prehearing conference shall not be permitted to unduly delay the 
progress of the proceeding and shall constitute a waiver of the rights 
of the party with regard thereto, including all objections to the 
agreements reached, actions taken, or rulings issued by the presiding 
officer with regard thereto.
    (e) Matters to be pursued. At the prehearing conference, the 
presiding officer and the parties shall consider and resolve such 
matters as:
    (1) The definition and simplification of the issues, including any 
appropriate explanation, clarification, or amendment of any proposal, 
filing, evidence, complaint or other pleading filed by any party;
    (2) Arrangements for timely completion of discovery from the Postal 
Service or any other party of information regarding any issues in the 
proceeding, prior filings, evidence or pleadings of any party;
    (3) Procedures for timely discovery with regard to any future 
evidentiary filings of any party;
    (4) Stipulations, admissions or concessions as to evidentiary 
facts, and agreements as to documentary matters, exhibits and matters 
of official notice, which will avoid unnecessary proof or dispute;
    (5) The possible grouping of parties with substantially like 
interests for purposes of presenting evidence, making and arguing 
motions and objections, cross-examining witnesses, filing briefs, and 
presenting oral argument to the Commission or presiding officer;
    (6) Disclosure of the number, identity and qualifications of 
witnesses, and the nature of their testimony, particularly with respect 
to the policies of the Act and, as applicable according to the nature 
of the proceeding;
    (7) Limitation of the scope of the evidence and the number of 
witnesses in order to eliminate irrelevant, immaterial, or cumulative 
and repetitious evidence;
    (8) Procedures to direct and control the use of discovery prior to 
the hearing and submission of written testimony and exhibits on matters 
in dispute so as to restrict to a bare minimum the amount of hearing 
time required for oral cross-examination of witnesses;
    (9) Division of the proceeding where practicable into two or more 
phases for separate and, if advisable, simultaneous hearings;
    (10) Establishment of dates for the submission and service of such 
written testimony and exhibits as may be appropriate in advance of the 
hearing;
    (11) The order of presentation of the evidence and cross-
examination of witnesses so that the hearing may proceed in the most 
expeditious and orderly manner possible; and

[[Page 9631]]

    (12) All other matters which would aid in an expeditious 
disposition of the proceeding, including consent of the parties to the 
conduct of the entire proceedings off the record.
    (f) Rulings by presiding officer. (1) The presiding officer at a 
prehearing conference, shall, irrespective of the consent of the 
parties, dispose of by ruling:
    (i) Any of the procedural matters itemized in paragraph (e) of this 
section; and
    (ii) Such other procedural matters on which the presiding officer 
is authorized to rule during the course of the hearing if ruling at 
this stage would expedite the proceeding.
    (2) Either on the record at the conclusion of such prehearing 
conference, or by order issued shortly thereafter, the presiding 
officer shall state the agreements reached by the parties, the actions 
taken, and the rulings made by the presiding officer. Such rulings 
shall control the subsequent course of the proceedings unless modified 
during the hearing to prevent manifest injustice.


Sec.  3010.303   Hearing format.

    (a) In any case noticed for a proceeding to be determined on the 
record, the Commission or the presiding officer, if one has been 
appointed, may determine whether to hold a public hearing, or to hold a 
hearing by written submission of material only. A public hearing may be 
held if a hearing is requested by any party to the proceeding or if the 
Commission determines that a hearing is in the public interest. 
Generally, public hearings provide an opportunity for oral cross-
examination of witnesses whereas hearings held by written submission of 
material only do not.
    (b) Once established, requests to change the hearing format may be 
proposed by motion, or by the Commission's or presiding officer's own 
motion.
    (c) Only representatives of the Commission, parties that have 
intervened in a proceeding, or persons intending to intervene prior to 
the deadline for notices of intervention may participate in a public 
hearing. However, public hearings are generally open to the public for 
observation. Public hearings may be closed to the public for good 
cause, or when confidential material is being presented.


Sec.  3010.304   Scheduling order.

    (a) When issued. Upon consideration of the outcome of the 
prehearing conference, if held, and a determination of the need for a 
public hearing, the Commission, or the presiding officer if one has 
been appointed, shall issue a scheduling order. The scheduling order 
may be combined with any other order or ruling that the Commission or 
the presiding officer may issue. The scheduling order may be 
periodically modified as warranted.
    (b) Content of scheduling order. The content of the scheduling 
order shall be tailored to the specifics of the matter before the 
Commission, including any requirement for a public hearing. The 
Commission or the presiding officer shall consider scheduling the 
following:
    (1) A deadline for conclusion of discovery on proponent's direct 
case;
    (2) A deadline to request oral cross-examination of proponent's 
witnesses;
    (3) A deadline for designation of written cross-examination on 
proponent's direct case;
    (4) The time and date for a public hearing on proponent's direct 
case, or the date and procedures for entering a proponent's direct case 
into evidence in a hearing by written submission of material only;
    (5) A deadline for parties other than the proponent to file 
testimony in support of, or in rebuttal to, the proponent's direct 
case;
    (6) A deadline for conclusion of discovery on testimony supporting 
or rebutting the proponent's direct case;
    (7) A deadline to request oral cross-examination of other parties' 
witnesses;
    (8) A deadline for designation of written cross-examination on 
other parties' testimony;
    (9) The time and date for a public hearing on other parties' 
testimony, or the date and procedures for entering other parties' 
testimony in a hearing by written submission of material only;
    (10) A deadline for the proponent to file surrebuttal testimony to 
other parties' direct cases;
    (11) A deadline for conclusion of discovery on any proponent's 
surrebuttal rebuttal testimony;
    (12) A deadline to request oral cross-examination of proponent's 
surrebuttal witnesses;
    (13) A deadline for designation of written cross-examination on 
proponent's surrebuttal testimony;
    (14) The time and date for a public hearing on a proponent's 
surrebuttal testimony, or the date and procedures for entering a 
proponent's surrebuttal testimony in a hearing by written submission of 
material only;
    (15) A deadline for filing briefs;
    (16) A deadline for filing reply briefs; and
    (17) A deadline for requesting oral argument.
    (c) Witness availability. Parties shall promptly file notice of 
potential witness unavailability to appear at any public hearing as 
soon as known. Witness unavailability will be considered when 
establishing the initial, or any subsequent, procedural schedules. Once 
the initial scheduling order is issued, but no later than ten calendar 
days prior to a scheduled hearing, parties may file notice of 
preferences for dates and times of witness appearance at any public 
hearing.
    (d) Subsequent scheduling of public hearings. At the adjournment of 
any public hearing (including prehearing conferences), the Commission, 
or the presiding officer if appointed, shall announce when the hearing 
will reconvene. If an announcement is not made, the Commission or the 
presiding officer shall announce the time, date, and location of the 
subsequent hearing, or prehearing conference in writing by notice, 
order, or presiding officer ruling.


Sec.  3010.310   Discovery--general policy.

    (a) Sections 3010.311 through 3010.313 allow discovery reasonably 
calculated to lead to admissible evidence during a proceeding noticed 
for hearing on the record. In general, discovery against a party will 
be scheduled to end prior to the receipt into evidence of that party's 
direct case. An exception to this procedure shall operate in all 
proceedings set for hearing when a party needs to obtain information 
(such as operating procedures or data) available only from the Postal 
Service. Such discovery requests are permissible only for the purpose 
of the development of rebuttal testimony and may be made up to 20 days 
prior to the filing date for final rebuttal testimony.
    (b) The discovery procedures set forth in Sec. Sec.  3010.311 
through 3010.313 are not exclusive. Parties are encouraged to engage in 
informal discovery whenever possible to clarify exhibits and testimony. 
The results of these efforts may be introduced into the record by 
stipulation, by supplementary testimony or exhibit, by presenting 
selected written interrogatories and answers for adoption by a witness 
at the hearing, or by other appropriate means. In the interest of 
reducing motion practice, parties also are expected to use informal 
means to clarify questions and to identify portions of discovery 
requests considered overbroad or burdensome.
    (c) If a party or an officer or agent of a party fails to obey an 
order of the Commission or the presiding officer to provide or permit 
discovery pursuant to Sec. Sec.  3010.311 through 3010.313, the 
Commission or the presiding officer may make such orders in regard to 
the failure as are just, and among others,

[[Page 9632]]

may direct that the matters regarding which the order was made or any 
other designated facts shall be taken to be established for the 
purposes of the proceeding in accordance with the claim of the parties 
obtaining the order, or prohibit the disobedient party from introducing 
designated matters in evidence, or strike the evidence, complaint or 
pleadings or parts thereof.


Sec.  3010.311   Interrogatories for purpose of discovery.

    (a) Service and contents. In the interest of expedition and limited 
to information which appears reasonably calculated to lead to the 
discovery of admissible evidence, any party may propound to any other 
party in a proceeding written, sequentially numbered interrogatories, 
by witness, requesting non-privileged information relevant to the 
subject matter and reasonably calculated to lead to the discovery of 
admissible evidence in such proceeding, to be answered by the party 
served, who shall furnish such information as is available to the 
requesting party. A party through interrogatories may require any other 
party to identify each person whom the other party expects to call as a 
witness at the hearing and to state the subject matter on which the 
witness is expected to testify. The party propounding the 
interrogatories shall file them with the Commission and serve them on 
the answering party. Follow-up interrogatories to clarify or elaborate 
on the answer to an earlier discovery request may be filed after the 
initial discovery period ends. They must be filed within seven days of 
receipt of the answer to the previous interrogatory unless 
extraordinary circumstances are shown.
    (b) Answers. Answers to discovery requests shall be prepared so 
that they can be incorporated as written cross-examination. Each answer 
shall begin on a separate page, identify the individual responding and 
the relevant testimony number, if any, the party who asked the 
question, and the number and text of the question. Each interrogatory 
shall be answered separately and fully in writing, unless it is 
objected to, in which event the reasons for objection shall be stated 
in the manner prescribed by paragraph (c) of this section. The party 
responding to the interrogatories shall file the answers with the 
Commission and serve them on the requesting party within 14 days of the 
filing of the interrogatories or within such other period as may be 
fixed by the Commission or presiding officer, but before the conclusion 
of the hearing.
    (c) Objections. In the interest of expedition, the grounds for 
every objection shall be clearly and fully stated. If an objection is 
made to part of an interrogatory, the part shall be specified. A party 
claiming privilege shall identify the specific evidentiary privilege 
asserted and state the reasons for its applicability. A party claiming 
undue burden shall state with particularity the effort that would be 
required to answer the interrogatory, providing estimates of cost and 
work hours required, to the extent possible. An interrogatory otherwise 
proper is not necessarily objectionable because an answer would involve 
an opinion or contention that relates to fact or the application of law 
to fact, but the Commission or presiding officer may order that such an 
interrogatory need not be answered until a prehearing conference or 
other later time. Objections shall be filed with the Commission and 
served on the requesting party within ten days of the filing of the 
interrogatories. Any ground not stated in a timely objection is waived 
unless excused by the Commission or presiding officer for good cause 
shown.
    (d) Motions to compel responses to discovery. Motions to compel a 
more responsive answer, or an answer to an interrogatory to which an 
objection was interposed, should be filed within 14 days of the answer 
or objection to the discovery request. The text of the discovery 
request, and any answer provided, should be provided as an attachment 
to the motion to compel. Parties who have objected to interrogatories 
which are the subject of a motion to compel shall have seven days to 
answer. Answers will be considered supplements to the arguments 
presented in the initial objection.
    (e) Compelled answers. The Commission, or the presiding officer, 
upon motion of any party to the proceeding, may compel a more 
responsive answer, or an answer to an interrogatory to which an 
objection has been raised if the objection is overruled, or may compel 
an additional answer if the initial answer is found to be inadequate. 
Such compelled answers shall be filed with the Commission and served on 
the compelling party within seven days of the date of the order 
compelling an answer or within such other period as may be fixed by the 
Commission or presiding officer, but before the conclusion of the 
hearing.
    (f) Supplemental answers. The individual or party who has answered 
interrogatories is under the duty to seasonably amend a prior answer if 
the individual or party obtains information upon the basis of which the 
individual or party knows that the answer was incorrect when made or is 
no longer true. Parties shall serve supplemental answers to update or 
to correct responses whenever necessary, up until the date the answer 
could have been accepted into evidence as written cross-examination. 
Parties filing supplemental answers shall indicate whether the answer 
merely supplements the previous answer to make it current or whether it 
is a complete replacement for the previous answer.
    (g) Orders. The Commission or the presiding officer may order that 
any party or person shall answer on such terms and conditions as are 
just and may for good cause make any protective order, including an 
order limiting or conditioning interrogatories, as justice requires to 
protect a party or person from undue annoyance, embarrassment, 
oppression, or expense.


Sec.  3010.312   Requests for production of documents or things for 
purpose of discovery.

    (a) Service and contents. In the interest of expedition and limited 
to information which appears reasonably calculated to lead to the 
discovery of admissible evidence, any party may serve on any other 
party to the proceeding a request to produce and permit the party 
making the request, or someone acting on behalf of the requesting party 
or the requesting party's agent to inspect and copy any designated 
documents or things that constitute or contain matters, not privileged, 
that are relevant to the subject matter involved in the proceeding or 
reasonably calculated to lead to the discovery of admissible evidence 
and that are in the custody or control of the party to whom the request 
is addressed. The request shall set forth the items to be inspected 
either by individual item or category, and describe each item and 
category with reasonable particularity, and shall specify a reasonable 
time, place and manner of making inspection. The party requesting the 
production of documents or things shall file its request with the 
Commission and serve the request on the responding party.
    (b) Answers. The party responding to the request shall file an 
answer with the Commission and serve the answer on the requesting party 
within 14 days after the request is filed, or within such other period 
as may be fixed by the Commission or presiding officer. The answer 
shall state, with respect to each item or category, that inspection 
will be permitted as requested unless the

[[Page 9633]]

request is objected to pursuant to paragraph (c) of this section. The 
responding party may produce copies of documents or of electronically 
stored information in lieu of permitting inspection. Production must be 
completed no later than the time for inspection specified in the 
request unless good cause is shown.
    (c) Objections. In the interest of expedition, the grounds for 
objection shall be clearly and fully stated. If an objection is made to 
part of an item or category, the part shall be specified. Any objection 
must state whether any responsive materials are being withheld on the 
basis of that objection. A party claiming privilege shall identify the 
specific evidentiary privilege asserted and state with particularity 
the reasons for its applicability. A party claiming undue burden shall 
state with particularity the effort that would be required to answer 
the request, providing estimates of cost and work hours required, to 
the extent possible. Objections shall be filed with the Commission and 
served on the requesting party within ten days of the request for 
production. The responding party may state an objection to a request to 
produce electronically stored information. If it objects to the form of 
the documents or things requested (or if no form was specified in the 
request), the responding party must state the form or forms it intends 
to use to produce the requested information.
    (d) Motions to compel requests for production of documents or 
things for purposes of discovery. Motions to compel shall be filed 
within 14 days of the answer or objection to the discovery request. The 
text of the discovery request, and any answer provided, should be 
provided as an attachment to the motion to compel. Parties who have 
objected to requests for production of documents or things which are 
the subject of a motion to compel shall have seven days to answer. 
Answers will be considered supplements to the arguments presented in 
the initial objection.
    (e) Compelled answers. Upon motion of any party to the proceeding 
to compel a response to discovery, as provided in paragraph (d) of this 
section, the Commission or the presiding officer may compel production 
of documents or things to which an objection is overruled. Such 
compelled documents or things shall be made available to the party 
making the motion within seven days of the date of the order compelling 
production or within such other period as may be fixed by the 
Commission or presiding officer, but before the conclusion of the 
hearing.
    (f) Orders and rulings. The Commission or the presiding officer may 
direct any party or person to respond to a request for inspection on 
such terms and conditions as are just and may for good cause impose any 
protective conditions, including limitations or preconditions for 
inspections, as justice requires to protect a party or person from 
undue annoyance, embarrassment, oppression, or expense.


Sec.  3010.313   Requests for admissions for purpose of discovery.

    (a) Service and content. In the interest of expedition, any party 
may serve upon any other party a written request for the admission, for 
purposes of the pending proceeding only, of any relevant, unprivileged 
facts, including the genuineness of any documents or exhibits to be 
presented in the hearing. Each requested admission shall be set forth 
separately and shall be deemed admitted unless within 14 days after the 
request is filed (or such other period as may be fixed by the 
Commission or presiding officer) the party to whom the request is 
directed files a written answer denying the requested admission 
pursuant to paragraph (c) of this section or objecting pursuant to 
paragraph (d) of this section. The party requesting an admission shall 
file its request with the Commission and serve the request on the 
responding party.
    (b) Answers. Answers that fail to admit a matter as requested shall 
specifically deny the matter or set forth in detail the reasons why the 
answering party cannot truthfully admit or deny the matter. A denial 
shall fairly meet the substance of the requested admission. When a 
party qualifies an answer or denies only a part of the admission 
requested, the party shall specify so much of the requested admission 
as is true and qualify or deny the remainder. A failure to admit or 
deny for lack of information or knowledge shall not be made unless the 
responding party states that it has made a reasonable inquiry and that 
information known or readily obtainable by the party is insufficient to 
enable the party to admit or deny. A party who answers a request for 
admission shall file its answer with the Commission and serve the 
answer on the requesting party.
    (c) Objections. If an objection is made, the grounds for such 
objection shall be clearly and fully stated. If an objection is made to 
part of an item, the part to which an objection is made shall be 
specified. A party claiming privilege shall identify the specific 
evidentiary privilege asserted and state the reasons for its 
applicability. A party claiming undue burden shall state with 
particularity the effort that would be required to answer the request, 
providing estimates of cost and work hours required to the extent 
possible. Objections shall be filed with the Commission and served on 
the requesting party, within ten days of the request for admissions.
    (d) Motions to compel responses to requests for admissions. The 
party who has requested an admission may move to determine the 
sufficiency of the answers or objections. Motions to compel a more 
responsive answer, or an answer to a request to which an objection was 
interposed, shall be filed within 14 days of the answer or objection to 
the request for admissions. The text of the request for admissions, and 
any answer provided, should be provided as an attachment to the motion 
to compel. Parties who have objected to requests for admissions which 
are the subject of a motion to compel shall have seven days to file a 
response. Responses will be considered supplements to the arguments 
presented in the initial objection.
    (e) Compelled answers. The Commission or the presiding officer may 
compel answers to a request for admissions to which an objection has 
been raised if the objection is overruled. Such compelled answers shall 
be filed with the Commission and served on the requesting party within 
seven days of the date of the order compelling production or within 
such other period as may be fixed by the Commission or the presiding 
officer, but before the conclusion of the hearing. If the Commission or 
presiding officer determines that an answer does not comply with the 
requirements of this rule, it may order either that the matter is 
admitted or that an amended answer be filed.


Sec.  3010.320   Settlement conferences.

    Any party to a proceeding may submit offers of settlement or 
proposals of adjustment at any time and may request a conference 
between the parties to consider such offers or proposals. The 
Commission or the presiding officer shall afford the parties 
appropriate opportunity prior to or during the hearing for conferences 
for the purpose of considering such offers or proposals as time, the 
nature of the proceeding, and the public interest permit. Unaccepted 
offers of settlement or adjustment and proposed stipulations not agreed 
to shall be privileged and shall not be admissible in evidence against 
any party claiming such privilege.

[[Page 9634]]

Sec.  3010.321  Hearings.

    (a) How convened. (1) Hearings shall be convened by the issuance of 
a notice, order, or presiding officer's ruling that is published in the 
Federal Register. Only the first session of a public hearing need be 
noticed and published in the Federal Register. All subsequent sessions 
within a docket are to be considered part of the same hearing. If there 
is a prehearing conference, the prehearing conference is to be 
considered the first hearing session in that docket.
    (2) At the adjournment of each hearing session, the presiding 
officer responsible for the conduct of that hearing session shall 
announce if and when the hearing will reconvene. If an announcement is 
not made at the adjournment of the hearing session, the Commission or 
presiding officer shall announce the time, date, and location of any 
subsequent hearing, or prehearing conference, in writing by notice, 
order, or presiding officer ruling.
    (b) Who presides. The presiding officer, if designated, shall 
preside over a public hearing. If a presiding officer has not been 
designated or is otherwise unavailable for a hearing, then the ranking 
Commissioner in attendance shall be considered the presiding officer 
for that hearing. The presiding officer shall open and close each 
session of the hearing, and shall be responsible for controlling the 
conduct of the hearing.
    (c) Entering of appearances. The presiding officer before whom the 
hearing is held will cause to be entered on the record all appearances 
together with a notation showing on whose behalf each such appearance 
has been made.
    (d) Witnesses. All witnesses are expected to be available for 
public hearings. Unless otherwise ordered by the presiding officer, a 
witness need only attend a hearing on those days scheduled for entering 
that witness's testimony. Subject to the discretion and prior approval 
of the presiding officer, a witness may be excused from appearing at a 
hearing and may have the witness's written testimony and cross-
examination entered into evidence by counsel.
    (e) Order of presentations. (1) The proponent of a matter before 
the Commission shall present the proponent's direct case first. In 
matters initiated by the Postal Service, the Postal Service shall be 
considered the proponent. In complaint proceedings under section 3662 
of the Act, the complainant shall be considered the proponent. The 
proponent also shall be provided an opportunity to respond to any 
rebuttal to the proponent's direct case. In all other instances, the 
Commission or the presiding officer shall determine the order of 
presentation.
    (2) The order of presentations by parties other than the proponent 
shall be determined by the Commission or the presiding officer.
    (3) The Commission or presiding officer shall announce the order of 
presentation of parties and individual witnesses prior to hearing 
sessions and shall issue such other procedural orders as may be 
necessary to assure the orderly and expeditious conclusion of the 
hearing. Parties may present their preferences for order of appearance 
to the Commission or the presiding officer orally at a hearing or by 
filing a notice prior to the scheduled hearing date. Parties who 
disagree with a proposed order of appearances may move for a revised 
order of appearances either orally at a hearing or by filing a written 
motion pursuant to Sec.  3010.160.
    (f) Swearing in of witnesses. (1) Witnesses attending a hearing 
whose testimony is to be taken shall be sworn, or shall affirm, before 
their testimony shall be deemed evidence in the proceeding or any 
questions are put to them. The witness shall be sworn by means of the 
following (or an equivalent): ``Please raise your right hand. Do you 
solemnly swear (or affirm), that the testimony that you are about to 
give is the truth, the whole truth, and nothing but the truth? Please 
state your full name.''
    (2) The oath shall be given upon the first appearance of the 
witness providing testimony. Upon subsequent appearances, the witness 
is to be reminded by the presiding officer that the witness remains 
under oath for the duration of the proceeding.
    (3) Witnesses not attending a hearing whose testimony is entered by 
counsel during a hearing shall attach a signed declaration that the 
testimony being submitted is that of the witness. A declaration shall 
be included with each piece of written testimony, and each set of 
written cross-examination. The declaration shall state the following 
(or an equivalent): ``Declaration of [witness name]. I, [witness name], 
hereby declare under penalty of perjury that: The [testimony, 
designated responses to written cross-examination] filed under my name 
were prepared by me or under my direction; and were I to [provide oral 
testimony, respond orally to the questions appearing in the 
interrogatories], my answers would be the same.''
    (4) Hearings that are conducted by the written submission of 
testimony only shall also attach written declarations to testimony and 
cross-examination as described above.
    (g) Presentation of the evidence--(1) Presentations by parties. 
Each party shall have the right to present evidence, cross-examine 
witnesses (limited to testimony adverse to the party conducting the 
cross-examination), and to present objections, motions, and arguments. 
The case-in-chief of parties other than the proponent shall be in 
writing and shall include the party's direct case and rebuttal, if any, 
to the initial proponent's case-in-chief. A party's presentation may be 
accompanied by a trial brief or legal memoranda. Legal memoranda on 
matters at issue are generally welcome at any stage of the proceeding. 
Parties will be given an opportunity to rebut presentations of other 
parties, including an opportunity for the initial proponent to present 
surrebuttal evidence. New affirmative matter (not in reply to another 
party's direct case) should not be included in rebuttal testimony or 
exhibits. When objections to the admission or exclusion of evidence 
before the Commission or the presiding officer are made, the grounds 
relied upon shall be stated. Formal exceptions to rulings are 
unnecessary.
    (2) Written testimony. (i) Written testimony shall be offered in 
evidence by motion. The motion shall be made orally during a hearing, 
or in writing when the hearing is conducted by the written submission 
of testimony only. When a party moves to enter testimony into the 
record, three hard copies of the document shall simultaneously be 
submitted to the Commission for the record. The copies are to be 
printed single-sided, and not stapled, hole-punched, or bound, but may 
be fastened together by paper or binder clip, or equivalent.
    (ii) Witnesses shall be provided an opportunity to verify that the 
written testimony they are sponsoring is their testimony and that it 
would be the same if given orally. The witness, or counsel, shall state 
the original filing date of the testimony and identify all subsequent 
filings that amended the original testimony. If there are any final 
corrections to the testimony, the corrections may be noted on the hard 
copies submitted to the Commission. However, the witness shall be 
required to file errata to the testimony within seven days of the 
hearing, making corrections only to the extent as identified during the 
hearing. Any other changes shall be requested separately by motion to 
amend the record.
    (iii) Parties shall be provided an opportunity to object to all or 
part of a witness's written testimony prior to

[[Page 9635]]

entering that testimony into the record. Objections that have not 
previously been made in writing at least 14 days prior to the hearing 
date shall be granted only under extraordinary circumstances.
    (iv) After resolution of all objections, the presiding officer 
shall order the testimony entered into the record as evidence. Unless 
otherwise ordered by the presiding officer, the written testimony shall 
not be copied into the hearing transcript.
    (3) Library references. (i) Library references sponsored by a 
witness and associated with the witness's written testimony or written 
cross-examination may be offered in evidence by motion. The motion 
shall be made orally during a public hearing, or in writing for a 
hearing that is conducted by the written submission of testimony only.
    (ii) Witnesses shall be provided an opportunity to verify that the 
library reference is their library reference and to affirm that they 
are in fact sponsoring the library reference. If a witness 
inadvertently fails to verify and affirm that the witness is sponsoring 
a library reference that is cited in written testimony or in response 
to written cross-examination, it will be presumed that the library 
reference is to be included in the record to the extent specified in 
the notice of the filing of the library reference.
    (iii) Parties shall be provided an opportunity to object to all or 
any part of the library reference being entered into the record. 
Objections that have not been made in writing at least 14 days prior to 
the hearing date shall be granted only under extraordinary 
circumstances.
    (iv) After resolution of all objections, the presiding officer 
shall order the library reference be entered into the record as 
evidence. Unless ordered by the presiding officer, library references 
shall not be copied into the hearing transcript.
    (4) Written cross-examination. (i) Written cross-examination will 
be utilized as a substitute for oral cross-examination whenever 
possible, particularly to introduce factual or statistical evidence. 
Written cross-examination may be offered in evidence by motion. The 
motion shall be made orally during a public hearing, or in writing for 
a hearing that is conducted by the written submission of testimony 
only. Written cross-examination proposed by parties other than the 
party associated with the witness shall be considered first, followed 
by that of the party of the witness.
    (ii) Designations of written cross-examination should be filed with 
the Commission and served on the answering party no later than three 
working days before the scheduled appearance of a witness. Designations 
shall identify every item to be offered as evidence, listing the party 
who initially posed the discovery request, the witness and/or party to 
whom the question was addressed (if different from the witness 
answering), the number of the request and, if more than one answer is 
provided, the dates of all answers to be included in the record. (For 
example, ``PR-T1-17 to USPS witness Jones, answered by USPS witness 
Smith (March 1, 1997) as updated (March 21, 1997)).'' When a party 
designates written cross-examination, three hard copies of the 
documents to be included shall simultaneously be submitted to the 
Secretary. The documents are to be printed single-sided, and not 
stapled, hole-punched, or bound, but may be fastened together by paper 
or binder clip, or equivalent. The Secretary shall prepare for the 
record a packet containing all materials designated for written cross-
examination in a format that facilitates review by the witness and 
counsel.
    (iii) A witness shall be provided an opportunity to verify that the 
written cross-examination is that of the witness and to assert that if 
the written cross-examination were being provided orally at the hearing 
it would be that of the witness. If there are any final corrections to 
the written cross-examination, the corrections may be noted on the hard 
copies before submission to the Commission.
    (iv) Parties shall be provided an opportunity to object to all or 
any part of the written cross-examination prior to entering the 
testimony into the record.
    (v) After resolution of all objections, the presiding officer shall 
order the written cross-examination entered into the record as 
evidence. The presiding office shall direct that the written cross-
examination be copied into the hearing transcript.
    (5) Oral cross-examination. (i) Oral cross-examination will be 
permitted for clarifying written cross-examination and for testing 
assumptions, conclusions, or other opinion evidence.
    (ii) Notices of intent to conduct oral cross-examination should be 
filed three or more working days before the announced appearance of the 
witness and should include specific references to the subject matter to 
be examined and page references to the relevant direct testimony and 
exhibits. If no notices are filed, and the Commission or presiding 
officer has no other reason for the witness to appear, the Commission 
or the presiding officer, in their discretion, may excuse the witness 
from appearing at the hearing and direct that the witness's testimony 
be entered by counsel.
    (iii) A party intending to use complex numerical hypotheticals, or 
to question using intricate or extensive cross-references, shall 
provide adequately documented cross-examination exhibits for the 
record. Copies of these exhibits should be filed at least two full 
business days before the scheduled appearance of the witness. They may 
be filed online or delivered in hardcopy form to counsel for the 
witness, at the discretion of the party. When presented, examination 
exhibits are not to be considered record evidence. They are to be 
transcribed into the record for reference only. If adopted by the 
witness, the examination exhibit may be offered in evidence by motion.
    (iv) At the conclusion of oral cross-examination, the witness shall 
be given an opportunity to consult with counsel. Counsel shall then be 
provided an opportunity to examine the witness for the purpose of 
clarifying statements previously made during oral cross-examination.
    (h) Institutional testimony. (1) This paragraph (h) is applicable 
to testimony offered in evidence that is not sponsored by an individual 
witness. This typically occurs when discovery questions are answered by 
the institution, and not by an individual witness.
    (2) When institutional responses are offered in evidence by any 
party, the responding party shall make available at the hearing an 
officer of the institution that has the authority to attest to the 
authenticity and truthfulness of the responses, and that has the 
knowledge to be subject to oral cross-examination in regard to the 
responses. Section 3010.321 applies as if the officer of the 
institution were an individual witness.
    (i) Limitations on presentation of the evidence. The taking of 
evidence shall proceed with all reasonable diligence and dispatch, and 
to that end, the Commission or the presiding officer may limit 
appropriately the number of witnesses to be heard upon any issue, the 
examination by any party to specific issues, and the cross-examination 
of a witness to that required for a full and true disclosure of the 
facts necessary for the disposition of the proceeding and to avoid 
irrelevant, immaterial, or unduly repetitious testimony.
    (j) Motions during hearing. After a hearing has commenced, a 
request may be made by motion to the presiding officer for any 
procedural ruling or relief desired. Such motions shall specify the 
ruling or relief sought, and state the grounds therefor and statutory 
or other supporting authority. Motions made

[[Page 9636]]

during hearings may be stated orally upon the record, except that the 
presiding officer may require that such motions be reduced to writing 
and filed separately. Any party shall have the opportunity to answer or 
object to such motions at the time and in the manner directed by the 
presiding officer.
    (k) Rulings on motions. The presiding officer is authorized to rule 
upon any such motion not formally acted upon by the Commission prior to 
the commencement of a prehearing conference or hearing where immediate 
ruling is essential in order to proceed with the prehearing conference 
or hearing, and upon any motion to the presiding officer filed or made 
after the commencement thereof, except that no motion made to the 
presiding officer, a ruling upon which would involve or constitute a 
final determination of the proceeding, shall be ruled upon 
affirmatively by the presiding officer except as a part of a presiding 
officer's intermediate decision. This section shall not preclude a 
presiding officer, within the presiding officer's discretion, from 
referring any motion made in hearing to the Commission for ultimate 
determination.
    (l) Transcript corrections. Corrections to the transcript of a 
hearing should not be requested except to correct a material 
substantive error in the transcription made at the hearing. Any request 
to correct a transcript shall be by motion filed no later than seven 
days after the transcript, or notice of the availability of a 
confidential transcript, is posted to the Commission's website. 
Corrections or changes to actual testimony shall not be allowed.


Sec.  3010.322   Evidence--general.

    (a) Form and admissibility. In all hearings, relevant and material 
evidence which is not unduly repetitious or cumulative shall be 
admissible. Witnesses whose testimony is to be taken shall be sworn, or 
shall affirm, before their testimony shall be deemed evidence in the 
proceeding or any questions are put to them.
    (b) Documentary material--(1) General. Documents and detailed data 
and information shall be presented as exhibits. Exhibits should be 
self-explanatory. They should contain appropriate footnotes or 
narrative explaining the source of each item of information used and 
the methods employed in statistical compilations. The principal title 
of each exhibit should state what it contains or represents. The title 
may also contain a statement of the purpose for which the exhibit is 
offered; however, this statement will not be considered part of the 
evidentiary record. Where one part of a multi-part exhibit is based on 
another part or on another exhibit, appropriate cross-references should 
be made. Relevant exposition should be included in the exhibits or 
provided in accompanying testimony. Testimony, exhibits and supporting 
workpapers prepared for Commission proceedings that are premised on 
data or conclusions developed in a library reference shall provide the 
location of that information within the library reference with 
sufficient specificity to permit ready reference, such as the page and 
line, or the file and the worksheet or spreadsheet page or cell. Where 
relevant and material matter offered in evidence is embraced in a 
document containing other matter not material or relevant or not 
intended to be put in evidence, the party offering the same shall 
plainly designate the matter offered excluding the immaterial or 
irrelevant parts. If other matter in such document is in such bulk or 
extent as would unnecessarily encumber the record, it may be marked for 
identification, and, if properly authenticated, the relevant and 
material parts may be read into the record, or, if the Commission or 
presiding officer so directs, a true copy of such matter in proper form 
shall be received in evidence as an exhibit. Copies of documents shall 
be delivered by the party offering the same to the other parties or 
their attorneys appearing at the hearing, who shall be afforded an 
opportunity to examine the entire document and to offer in evidence in 
like manner other material and relevant portions thereof.
    (2) Status of library references. Designation of material as a 
library reference and acceptance in the Commission's docket section do 
not confer evidentiary status. The evidentiary status of the material 
is governed by Sec.  3010.321(g)(3).
    (c) Commission's files. Except as otherwise provided in paragraph 
(e) of this section, any matter contained in a report or other document 
on file with the Commission may be offered in evidence by specifying 
the report, document, or other file containing the matter so offered 
and the report or other document need not be produced or marked for 
identification.
    (d) Public document items. Whenever there is offered in evidence 
(in whole or in part) a public document, such as an official report, 
decision, opinion or published scientific or economic statistical data 
issued by any of the Executive Departments (or their subdivisions), 
legislative agencies or committees, or administrative agencies of the 
Federal Government (including Government-owned corporations) and such 
document (or part thereof) has been shown by the offeror thereof to be 
reasonably available to the public, such document need not be produced 
or physically marked for identification, but may be offered in evidence 
as a public document item by clearly identifying the document and the 
relevant parts thereof.
    (e) Designation of evidence from other Commission dockets. (1) 
Parties may request that evidence received in other Commission 
proceedings be entered into the record of the current proceeding. These 
requests shall be made by motion, shall explain the purpose of the 
designation, and shall identify material by page and line or paragraph 
number.
    (2) In proceedings to consider the appeal of a Postal Service 
determination to close or consolidate a post office conducted pursuant 
to part 3021 of this chapter, these requests must be made at least six 
days before the date for filing the party's direct case. Oppositions to 
motions for designations and/or requests for counter-designations shall 
be filed within three days. Oppositions to requests for counter-
designations are due within two days.
    (3) In all other proceedings subject to this section, these 
requests must, in the absence of extraordinary circumstances, be made 
at least 28 days before the date for filing the party's direct case. 
Oppositions to motions for designations and/or requests for counter-
designations shall be filed within 14 days. Oppositions to requests for 
counter-designations are due within seven days.
    (4) In all proceedings subject to this section, the moving party 
must submit two copies of the identified material to the Secretary at 
the time requests for designations and counter-designations are made.
    (f) Form of prepared testimony and exhibits. Unless the presiding 
officer otherwise directs, the direct testimony of witnesses shall be 
reduced to writing and offered either as such or as an exhibit. All 
prepared testimony and exhibits of a documentary character shall, so 
far as practicable, conform to the requirements of Sec.  3010.124(a) 
and (b).
    (g) Copies to parties. Except as otherwise provided in these rules, 
copies of exhibits shall be furnished to the presiding officer and to 
the parties or counsel during a hearing, unless the presiding officer 
otherwise directs.
    (h) Reception and ruling. The presiding officer shall rule on the 
admissibility of evidence and otherwise control the reception of 
evidence so as

[[Page 9637]]

to confine it to the issues in the proceeding.
    (i) Offers of proof. Any offer of proof made in connection with any 
ruling of the presiding officer rejecting or excluding proffered oral 
testimony shall consist of a statement of the substance of the evidence 
which counsel contends would be adduced by such testimony; and if the 
excluded evidence consists of evidence in documentary or written form, 
or of reference to documents or records, a copy of such evidence shall 
be marked for identification and shall constitute the offer of proof.
    (j) Official notice of facts. Official notice may be taken of such 
matters as might be judicially noticed by the courts of the United 
States or of any other matter peculiarly within the knowledge of the 
Commission as an expert body. Any party shall, on timely request, be 
afforded an opportunity to show the contrary.


Sec.  3010.323   Evidence--introduction and reliance upon studies and 
analyses.

    (a) Statistical studies. All statistical studies offered in 
evidence in hearing proceedings or relied upon as support for other 
evidence shall include a comprehensive description of the assumptions 
made, the study plan utilized, the procedures undertaken, and 
references from the academic literature supporting the procedures 
undertaken. Machine-readable data files, program files, workbooks, and 
all other necessary materials to enable independent replication of the 
results or program output if requested by the Commission or parties 
shall be provided in the form of a compact disk or other media or 
method approved in advance by the Secretary. Where a computer analysis 
is employed to obtain the result of a statistical study, all of the 
submissions required by paragraph (b) of this section shall be 
furnished, upon request. In addition, for each of the following types 
of statistical studies, the following information should be provided:
    (1) Market research. The following information shall be provided:
    (i) A clear and detailed description of the sample, observational, 
and data preparation designs, including definitions of the target 
population, sampling frame, units of analysis, questionnaires or data 
collection instruments, survey variables, and the possible values;
    (ii) An explanation of methodology for the production and analysis 
of the major survey estimates and associated sampling errors;
    (iii) A presentation of response, coverage and editing rates, and 
any other potential sources of error associated with the survey's 
quality assurance procedures;
    (iv) A discussion of data comparability over time and with other 
data sources;
    (v) A complete description and assessment of the effects of all 
editing and imputation employed;
    (vi) Identification of all applicable statistical models considered 
and the reasons the model based procedures and/or models were selected 
over other models or procedures, when model-based procedures are 
employed; and
    (vii) An explanation of all statistical tests performed and an 
appropriate set of summary statistics summarizing the results of each 
test.
    (2) Other sample surveys. The following information shall be 
provided:
    (i) A clear description of the survey design, including the 
definition of the universe under study, the sampling frame and units, 
and the validity and confidence limits that can be placed on major 
estimates; and
    (ii) An explanation of the method of selecting the sample and the 
characteristics measured or counted.
    (3) Experimental analyses. The following information shall be 
provided:
    (i) A complete description of the experimental design, including a 
specification of the controlled conditions and how the controls were 
realized; and
    (ii) A complete description of the methods of making observations 
and the adjustments, if any, to observed data.
    (4) Econometric studies. The following information shall be 
provided:
    (i) A presentation of the economic theory and assumptions 
underlying the study;
    (ii) A complete description of the econometric model(s) and the 
reasons for each major assumption and specification;
    (iii) The definition of the variables selected and the 
justification for their selection;
    (iv) For any alternative model whose computed econometric results 
influenced the choice of the preferred model, a statement of the 
reasons for rejecting that alternative, an identification of any 
differences between that alternative and the preferred model with 
respect to variable definitions, equation forms, data, or estimation 
methods, and, upon request, the computed econometric results for that 
alternative;
    (v) A reference to a detailed description in a text, manual, or 
technical journal for every econometric technique used in the 
estimation process and the reasons for selecting the technique, or, in 
the alternative, a description and analysis of the technique that is 
sufficient for a technical evaluation;
    (vi) Summary descriptions and source citations for all input data 
and, upon request, a complete listing of the data. Complete 
descriptions of any alterations, adjustments, or transformations made 
to the data as received from the original sources, and the reasons for 
making the alterations, adjustments, or transformations;
    (vii) A complete report of the econometric results including, where 
applicable coefficient estimates, standard errors and t-values, 
goodness-of-fit statistics, other appropriate test statistics, the 
variance/covariance matrix of the estimates, and computed residuals for 
results computed from samples composed of fewer than 250 observations, 
and, upon request, other computed residuals; and
    (viii) Descriptions of all statistical tests of hypotheses and the 
results of such tests.
    (5) All other studies involving statistical methodology. The 
following information shall be provided:
    (i) The formula used for statistical estimates;
    (ii) The standard errors of each component estimated;
    (iii) Test statistics and the description of statistical tests and 
all related computations, and final results; and
    (iv) Summary descriptions of input data, and upon request the 
actual input data shall be made available at the offices of the 
Commission.
    (b) Computer analyses. (1) In the case of computer studies or 
analyses which are being offered in evidence, or relied upon as support 
for other evidence, a foundation for the reception of such materials 
must be laid by furnishing a general description of the program that 
includes the objectives of the program, the processing tasks performed, 
the methods and procedures employed, and a listing of the input and 
output data and source codes (or a showing pursuant to paragraph (b)(3) 
of this section as to why such codes cannot be so furnished) and such 
description shall be furnished in all cases. For the purpose of 
completing such foundation, the following additional items shall be 
deemed presumptively necessary and shall be furnished upon request of a 
party, the Commission, or the presiding officer, unless the presumption 
is overcome by an affirmative showing. The following information shall 
be provided:
    (i) For all input data, designations of all sources of such data, 
and

[[Page 9638]]

explanations of any modifications to such data made for use in the 
program;
    (ii) Definitions of all input and output variables or sets of 
variables;
    (iii) A description of input and output data file organization;
    (iv) For all source codes, documentation sufficiently comprehensive 
and detailed to satisfy generally accepted software documentation 
standards appropriate to the type of program and its intended use in 
the proceeding;
    (v) All pertinent operating system and programming language 
manuals;
    (vi) If the requested program is user interactive, a representative 
sample run, together with any explanation necessary to illustrate the 
response sequence;
    (vii) An expert on the design and operation of the program shall be 
provided at a technical conference to respond to any oral or written 
questions concerning information that is reasonably necessary to enable 
independent replication of the program output; and
    (viii) Computer simulation models offered in evidence or relied 
upon as support for other evidence, shall be bound by all applicable 
provisions of this paragraph (b) and the separate requirements of 
paragraph (a) of this section, to the extent that portions of the 
simulation model utilize or rely upon such studies. Information that 
compares the simulation model output results to the actual phenomena 
being modelled, using data other than those from which the model was 
developed, shall be separately identified and submitted as evidence 
supporting the test and validation of the simulation model. Separate 
statements concerning the model limitations, including limiting model 
design assumptions and range of data input utilized in model design, 
shall be provided. Where test and validation of the entire simulation 
model are not possible, test and validation information shall be 
provided for disaggregate portions of the model. If disaggregate 
testing and validation are not possible, separate statements to that 
effect and statements regarding operational experts' review of model 
validity shall be provided.
    (2) Upon timely and otherwise proper request of a party, or sua 
sponte, the Commission or the presiding officer may rule that matters 
other than those listed in paragraphs (b)(1)(i) through (viii) of this 
section are necessary to establish the foundation for reception of the 
evidence concerned and must be furnished.
    (3) When the requestor is other than the Commission or the 
presiding officer, the cost of producing the material required in 
paragraphs (b)(1)(iv), (vi), and (vii) of this section, shall be borne 
by the requesting party unless otherwise ordered, for good cause shown 
by the requestor. When the Commission or the presiding officer is the 
requestor, it may assume or equitably allocate such costs for good 
cause shown by the requester.
    (4) If the recipient of a request for materials pursuant to this 
paragraph (b) asserts that compliance with the request would conflict 
with patent, copyright, trade secret or contract rights applicable to 
the requested material, the recipient shall immediately notify the 
requestor and the presiding officer. If valid, the presiding officer 
shall devise means of accommodating such rights. Such means may include 
protective orders, including access under protective conditions to the 
computer facilities of the recipient of a request, making material 
available for inspection, compensation, or other procedures, according 
to the nature of the right affected by compliance with this paragraph 
(b). If the presiding officer determines that compensation is necessary 
to accommodate the affected right, the cost of compensation shall be 
borne in the same manner that paragraph (b)(3) of this section 
prescribes for bearing the costs referenced there. If such right cannot 
be accommodated by reasonable compensation, or by protective orders or 
other procedures, and, as a result, materials required by this 
paragraph (b) cannot be provided, the presiding officer shall 
determine, in the presiding officer's discretion, whether evidence that 
relies upon the materials not provided shall be admissible or afforded 
limited weight.
    (c) Other studies and analyses. In the case of all studies and 
analyses offered in evidence in hearing proceedings or relied upon as 
support for other evidence, other than the kinds described in 
paragraphs (a) and (b) of this section, there shall be a clear 
statement of the study plan, all relevant assumptions and a description 
of the techniques of data collection, estimation and/or testing. In 
addition, there shall be a clear statement of the facts and judgments 
upon which conclusions are based, together with an indication of the 
alternative courses of action considered and the steps taken to ensure 
the validity, accuracy, and reliability of the evidence. Tabulations of 
input data, workbooks, and all other materials necessary to replicate 
results shall be made available upon request at the offices of the 
Commission.
    (d) Expedition. The party who offers studies or analyses in 
evidence shall expedite responses to requests made pursuant to this 
section for data or other information. Responses shall be served on the 
requesting party, and notice thereof filed with the Secretary in 
accordance with the provisions of Sec.  3010.127 no later than 3 days 
after a request is made under Sec.  3010.322(e)(2) or no later than 14 
days after a request is made under Sec.  3010.322(e)(3).


Sec.  3010.324   In camera orders.

    (a) Definition. Except as hereinafter provided, documents and 
testimony made subject to in camera orders are not made a part of the 
public record, but are kept confidential, and only authorized parties, 
their counsel, authorized Commission personnel, and court personnel 
concerned with judicial review shall have access thereto. The right of 
the presiding officer, the Commission, and reviewing courts to disclose 
in camera data to the extent necessary for the proper disposition of 
the proceeding is specifically reserved.
    (b) In camera treatment of documents and testimony. (1) Presiding 
officers shall have authority, but only in those unusual and 
exceptional circumstances when good cause is found on the record, to 
order documents or oral testimony offered in evidence whether admitted 
or rejected, to be placed in camera. The order shall specify the date 
on which in camera treatment expires and shall include:
    (i) A description of the documents and testimony;
    (ii) A full statement of the reasons for granting in camera 
treatment; and
    (iii) A full statement of the reasons for the date on which in 
camera treatment expires.
    (2) Any party desiring, for the preparation and presentation of the 
case, to disclose in camera documents or testimony to experts, 
consultants, prospective witnesses, or witnesses, shall make 
application to the presiding officer setting forth the justification 
therefor. The presiding officer, in granting such application for good 
cause found, shall enter an order protecting the rights of the affected 
parties and preventing unnecessary disclosure of information. In camera 
documents and the transcript of testimony subject to an in camera order 
shall be segregated from the public record and filed in a sealed 
envelope, bearing the title and docket number of the proceeding, the 
notation ``In Camera Record under Sec.  3010.323,'' and the date on 
which in camera treatment expires.
    (c) Release of in camera information. In camera documents and 
testimony shall constitute a part of the confidential records of the 
Commission. However, the Commission, on its own motion or pursuant to a 
request, may make in

[[Page 9639]]

camera documents and testimony available for inspection, copying, or 
use by any other governmental agency. The Commission shall, in such 
circumstances, give reasonable notice of the impending disclosure to 
the affected party. However, such notice may be waived in extraordinary 
circumstances for good cause.
    (d) Briefing of in camera information. In the submittal of proposed 
findings, briefs, or other papers, counsel for all parties shall make a 
good faith attempt to refrain from disclosing the specific details of 
in camera documents and testimony. This shall not preclude references 
in such proposed findings, briefs, or other papers to such documents or 
testimony including generalized statements based on their contents. To 
the extent that counsel consider it necessary to include specific 
details of in camera data in their presentations, such data shall be 
incorporated in separate proposed findings, briefs, or other papers 
marked ``confidential,'' which shall be placed in camera and become a 
part of the in camera record.


Sec.  3010.325   Depositions.

    (a) When permissible. The testimony of a witness may be taken by 
deposition when authorized by the Commission or the presiding officer 
on application of any party before the hearing is closed. An 
authorization to take the deposition of a witness will be issued only 
if:
    (1) The person whose deposition is to be taken would be unavailable 
at the hearing;
    (2) The deposition is deemed necessary to perpetuate the testimony 
of the witness; or
    (3) The taking of the deposition is necessary to prevent undue and 
excessive expense to a party and will not result in undue delay or an 
undue burden to other parties.
    (b) Application. An application for authorization to take testimony 
by deposition shall be filed with the Commission or the presiding 
officer and shall state:
    (1) The name, identification, and post office address of the 
witness;
    (2) The subject matter of the testimony.
    (3) The time and place of taking the deposition;
    (4) The name, identification, and post office address of the 
officer before whom the deposition is to be taken; and
    (5) The reasons why the testimony of such witness should be taken 
by deposition.
    (c) Authorization. If the application so warrants, the Commission 
or the presiding officer will issue and serve or cause to be served on 
the parties within a reasonable time in advance of the time fixed for 
taking testimony, an authorization for the taking of such testimony by 
deposition. Such authorization shall name the witness, the time, place, 
and officer before whom the deposition shall be taken, and shall 
specify the number of copies of the deposition to be submitted to the 
Commission. The authorization may include such terms and conditions as 
the Commission or the presiding officer deems fair and reasonable.
    (d) Qualifications of officer before whom taken. Such deposition 
may be taken before a presiding officer or other authorized 
representative of the Commission, or any officer, not being counsel or 
attorney for any party or having an interest in the proceeding, 
authorized to administer oaths by the laws of the United States or of 
the place where the deposition is to be taken.
    (e) Oath and reduction to writing. The officer before whom the 
deposition is to be taken shall put the witness on oath or affirmation 
and shall personally, or by someone acting under the officer's 
direction and in the officer's presence, record the examination of the 
witness. The examination shall be transcribed in the form specified in 
Sec.  3010.124(a), signed by the witness, and certified in the usual 
form by the officer. The original of the deposition, together with the 
number of copies required by the authorization to be made by such 
officer, shall be forwarded by the officer to the Secretary by personal 
delivery or registered mail. Upon receipt, the Secretary shall hold the 
original for use in the hearing upon request by any party and shall 
make copies available for public inspection.
    (f) Scope and conduct of examination. Unless otherwise directed in 
the authorization, the witness may be questioned regarding any matter 
which is relevant to the issues involved in the proceeding. Parties 
shall have the right for cross-examination and objection. In lieu of 
participation in the oral examination, parties may transmit written 
interrogatories to the officer who shall propound them to the witness.
    (g) Objections. The officer before whom the deposition is taken 
shall not have the power to rule upon procedural matters or the 
competency, materiality, or relevancy of questions. Procedural 
objections or objections to questions of evidence shall be stated 
briefly and recorded in the deposition without argument. Objections not 
stated before the officer shall be deemed waived.
    (h) When a part of the record. No portion of a deposition shall 
constitute a part of the record in the proceeding unless received in 
evidence by the presiding officer. If only a portion of the deposition 
is offered in evidence by a party, any other party may require the 
party to introduce all of it which is relevant to the part introduced, 
and any party may offer in evidence any other portions.
    (i) Fees. Witnesses whose depositions are taken and the officer 
taking the same shall be entitled to the same fees as are paid for like 
services in the District Courts of the United States to be paid 
directly by the party or parties on whose application the deposition 
was taken.


Sec.  3010.330   Briefs.

    (a) When filed. At the close of the taking of testimony in any 
proceeding, the Commission or the presiding officer shall fix the time 
for the filing and service of briefs, giving due regard to the timely 
issuance of the decision. In addition, subject to such consideration, 
due regard shall be given to the nature of the proceeding, the 
complexity and importance of the issues involved, and the magnitude of 
the record. In cases subject to a limitation on the time available to 
the Commission for decision, the Commission may direct each party to 
file its brief simultaneously with the filing of briefs by other 
parties. In cases where, because of the nature of the issues and the 
record or the limited number of parties involved, the filing of initial 
and reply briefs, or the filing of initial, answering, and reply 
briefs, will not unduly delay the conclusion of the proceeding and will 
aid in the proper disposition of the proceeding, the parties may be 
directed to file more than one brief and at different times rather than 
a single brief filed simultaneously with briefs filed by other parties. 
The Commission or presiding officer may also order the filing of briefs 
during the course of the proceeding.
    (b) Contents. Each brief filed with the Commission shall be as 
concise as possible, within any page limitation specified by the 
Commission or the presiding officer, and shall include the following in 
the order indicated:
    (1) A subject index with page references, and a list of all cases 
and authorities relied upon, arranged alphabetically, with references 
to the pages where the citation appears;
    (2) A concise statement of the case from the viewpoint of the 
filing party;
    (3) A clear, concise, and definitive statement of the position of 
the filing party as to the matter before the Commission and the 
decision to be issued;
    (4) A discussion of the evidence, reasons, and authorities relied 
upon

[[Page 9640]]

with exact references to the record and the authorities; and
    (5) Proposed findings and conclusions with appropriate references 
to the record or the prior discussion of the evidence and authorities 
relied upon.
    (c) Incorporation by references. Briefs before the Commission or a 
presiding officer shall be completely self-contained and shall not 
incorporate by reference any portion of any other brief, pleading, or 
document.
    (d) Excerpts from the record. Testimony and exhibits shall not be 
quoted or included in briefs except for short excerpts pertinent to the 
argument presented.
    (e) Filing and service. Briefs shall be filed with the Commission 
and served on all parties as required pursuant to subpart B of this 
part.


Sec.  3010.331   Proposed findings and conclusions.

    The Commission or the presiding officer may direct the filing of 
proposed findings and conclusions with a brief statement of the 
supporting reasons for each proposed finding and conclusion.


Sec.  3010.332   Oral argument before the presiding officer.

    In any case in which the presiding officer is to issue an 
intermediate decision, such officer may permit the presentation of oral 
argument when, in the presiding officer's opinion, time permits, and 
the nature of the proceedings, the complexity or importance of the 
issues of fact or law involved, and the public interest warrants 
hearing such argument. The presiding officer shall determine the time 
and place for oral argument, and may specify the issue or issues on 
which oral argument is to be presented, the order in which the 
presentations shall be made, and the amount of time allowed each party. 
A request for oral argument before the issuance of an intermediate 
decision shall be made during the course of the hearing on the record.


Sec.  3010.333   Oral argument before the Commission.

    (a) When ordered. In any proceeding before the Commission for 
decision, the Commission, upon the request of any party or on its own 
initiative, may order oral argument when, in the Commission's 
discretion, time permits, and the nature of the proceedings, the 
complexity or importance of the issues of fact or law involved, and 
public interest warrants such argument.
    (b) How requested. Any party in a proceeding before the Commission 
for decision may request oral argument before the Commission by filing 
a timely motion. In a proceeding before the Commission on exceptions to 
an intermediate decision, such motion shall be filed no later than the 
date for the filing of briefs on exceptions.
    (c) Notice of oral argument. The Commission shall rule on requests 
for oral argument, and if argument is allowed, the Commission shall 
notify the parties of the time and place set for argument, the amount 
of time allowed each party, and the issue or issues on which oral 
argument is to be heard. Unless otherwise ordered by the Commission, 
oral argument shall be limited to matters properly raised on the record 
and in the briefs before the Commission.
    (d) Use of documents at oral argument. Charts, graphs, maps, 
tables, and other written material may be presented to the Commission 
at oral argument only if limited to facts in the record of the case 
being argued and if copies of such documents are filed with the 
Secretary and served on all parties at least seven days in advance of 
the argument. Enlargements of such charts, graphs, maps, and tables may 
be used at the argument provided copies are filed and served as 
required by this paragraph.


Sec.  3010.334   Commission decisions.

    (a) At the conclusion of a proceeding on the record with the 
opportunity for a hearing, the Commission shall issue a final decision 
which either:
    (1) Adopts an intermediate decision prepared by a presiding 
officer; or
    (2) Rules upon the matters that are before the Commission, or 
provides explanation for why such rulings are not being provided.
    (b) Commission decisions shall be based on the evidence entered 
into the record, and consider the arguments filed on brief. Argument 
provided in comments may further inform the Commission's decision, but 
have no evidentiary standing and are not required to be addressed in 
the final decision.
    (c) An intermediate decision may be adopted by the Commission in 
whole or in part. When an intermediate decision is adopted in part, the 
Commission shall explain its decisions regarding both what is and is 
not adopted.
    (d) When exceptions, or objections to exceptions, to an 
intermediate decision are filed pursuant to Sec.  3010.336 by any party 
to the proceeding, the Commission shall consider and rule upon such 
exceptions, or objections to exceptions in its final decision.
    (e) Commission decisions shall be filed in the docket and served on 
all parties. Commission decisions shall be part of the record of the 
proceeding.


Sec.  3010.335   Intermediate decisions.

    (a) An intermediate decision shall be issued by the presiding 
officer which rules upon the matters that are before the Commission, or 
provides explanation for why such rulings are not being provided, in a 
proceeding on the record with the opportunity for a hearing when:
    (1) The Commission is not sitting en banc; or
    (2) The presiding office has been directed to issue an intermediate 
decision by Commission notice or order.
    (b) Intermediate decisions shall be based on the evidence entered 
into the record, and shall consider the arguments filed on brief. 
Arguments provided in comments may further inform the presiding 
officer's decision, but are not required to be addressed in the 
intermediate decision.
    (c) Intermediate decisions shall be filed in the docket and served 
on all parties. Intermediate decisions shall be part of the record of 
the proceeding.
    (d) Intermediate decisions are subject to review by the Commission 
and subject to challenge by parties to the proceeding through the 
filing of exceptions pursuant to Sec.  3010.336. After review and 
consideration of the exceptions filed, intermediate decisions may be 
adopted by the Commission, in whole or in part, as part of the final 
decision in the proceeding.
    (e)(1) The Commission may, at any time, direct the omission of an 
intermediate decision and the certification of the record for the 
Commission's consideration sitting en banc. Parties to a proceeding 
may, by motion, request the omission of an intermediate decision and 
the certification of the record for the Commission's consideration 
sitting en banc. Motions shall specify:
    (i) The concurrence of other parties; and
    (ii) Whether opportunity for filing briefs or presenting oral 
argument to the Commission is desired or waived.
    (2) Failure of any party to object to such request shall constitute 
a waiver of any objections. Motions shall be filed no later than the 
deadline for the filing of briefs. In either instance, the decision to 
omit an intermediate decision shall be based upon the consideration of 
the novelty of the matters before the Commission, and the timely and 
efficient operation of the docket.


Sec.  3010.336   Exceptions to intermediate decisions.

    (a) Briefs on exceptions and opposing exceptions. Any party in a 
proceeding

[[Page 9641]]

may file exceptions to any intermediate decision by first filing a 
notice of intent to file a brief on exceptions with the Commission 
within seven days after the date of issuance of the intermediate 
decision or such other time as may be fixed by the Commission. The 
brief on exceptions shall be filed with the Commission within 30 days 
after the date of issuance of the intermediate decision or such other 
time as may be fixed by the Commission. Any party to a proceeding may 
file a response to briefs on exceptions within 20 days after the time 
limited for the filing of briefs on exceptions or such other time as 
may be fixed by the Commission. No further response will be entertained 
unless the Commission, upon motion for good cause shown or on its own 
initiative, so orders.
    (b) Filing and contents. Briefs on exceptions and briefs opposing 
exceptions shall be filed in accordance with Sec.  3010.330. In briefs 
on exceptions, the discussion of evidence, reasons and authorities 
shall be specifically directed to the findings, conclusions and 
recommendations in the intermediate decision to which exception is 
taken. Briefs on exceptions should not include a discussion of evidence 
and authorities on matters and issues to which no exception to the 
intermediate decision is taken. Briefs on exceptions and briefs 
opposing exceptions need not contain a statement of the case to the 
extent that it was correctly stated in either the intermediate decision 
or the brief on exceptions of another party to which reference is made.
    (c) Failure to except results in waiver. Any party who fails to 
except or object to any part of an intermediate decision in its brief 
on exceptions may not thereafter raise such exceptions or objections 
which shall be deemed to have been waived.

PART 3011--NON-PUBLIC MATERIALS PROVIDED TO THE COMMISSION

0
44. The authority for newly redesignated part 3011 continues to read as 
follows:

    Authority:  39 U.S.C. 503, 504.


0
 45. Amend newly redesignated Sec.  3011.101 by revising paragraph (a) 
to read as follows:


Sec.  3011.101   Definitions.

    (a) Non-public materials means any documents or things that are 
provided to the Commission and identified as containing non-public 
information. The Postal Service may claim that information that would 
be exempt from disclosure pursuant to 39 U.S.C. 410(c), 504(g), 
3652(f), or 3654(f) is non-public information. Any person other than 
the Postal Service with a proprietary interest in the materials may 
claim that information that would be protectable under Federal Rule of 
Civil Procedure 26(c) is non-public information. Any person may claim 
that information that is exempt from public disclosure under 5 U.S.C. 
552(b) is non-public information. Non-public materials cease to be non-
public if the status has expired or has been terminated by the 
Commission pursuant to this part. Except as provided by Sec.  3011.205, 
non-public materials cease to be non-public if the submitter publicly 
discloses the materials with the consent of each affected person with a 
propriety interest in the materials (if applicable). The cessation of 
non-public status applies to the particular document or thing and the 
particular information contained therein (in whole or in part, as 
applicable).
* * * * *

0
46. Amend newly redesignated Sec.  3011.102 by revising paragraph (a) 
to read as follows:


Sec.  3011.102   Treatment of non-public materials.

    (a) Except as described in part 3011 or part 3006 of this chapter, 
the Commission will neither disclose nor grant access to any non-public 
materials (and the non-public information contained therein).
* * * * *

0
47. Amend newly redesignated Sec.  3011.103 by revising paragraphs (a) 
and (c) to read as follows:


Sec.  3011.103   Commission action to determine non-public treatment.

    (a) Information requests as described in Sec.  3010.170 of this 
chapter, preliminary notices, or interim orders may be issued to help 
the Commission determine the non-public treatment, if any, to be 
accorded to the materials claimed by any person to be non-public.
* * * * *
    (c) Upon its own motion, the Commission may issue notice of its 
preliminary determination concerning the appropriate degree of 
protection, if any, to be accorded to materials claimed by any person 
to be non-public. A response is due within seven calendar days of 
issuance of the preliminary determination, unless the Commission 
otherwise provides. No reply to a response shall be filed, unless the 
Commission otherwise provides. Pending the Commission's resolution of 
the preliminary determination, information designated as non-public 
will be accorded non-public treatment. The Commission will enter an 
order determining what non-public treatment, if any, will be accorded 
to the materials after the response period described in this paragraph 
has expired. The determination of the Commission shall follow the 
applicable standard described in Sec.  3011.104.

0
48. Amend newly redesignated Sec.  3011.200 by revising paragraph (a) 
to read as follows:


Sec.  3011.200   General requirements for submitting non-public 
materials and seeking non-public treatment.

    (a) Whenever providing non-public materials to the Commission, the 
submitter shall concomitantly provide the following: An application for 
non-public treatment that clearly identifies all non-public materials 
and describes the circumstances causing them to be submitted to the 
Commission in accordance with Sec.  3011.201, a redacted (public) 
version of the non-public materials in accordance with Sec.  3011.202, 
and an unredacted (sealed) version of the non-public materials in 
accordance with Sec.  3011.203.
* * * * *

0
49. Amend newly redesignated Sec.  3011.203 by revising paragraph (b) 
to read as follows:


Sec.  3011.203   Unredacted version of the non-public materials.

* * * * *
    (b) The Filing Online method that results in posting a document 
that is available to the public, which is accessible through the 
Commission's website (http://www.prc.gov) described under part 3010, 
subpart B of this chapter may not be used to submit the unredacted 
version of non-public materials.
* * * * *

0
50. Amend newly redesignated Sec.  3011.205 by revising paragraphs (a) 
through (c) introductory text and (c)(3) to read as follows:


Sec.  3011.205   Non-public materials inadvertently submitted publicly.

    (a) Any filer or person with a proprietary interest that discovers 
the inclusion of materials that could have been subject to a claim for 
non-public treatment are contained within a public filing made in 
accordance with subpart B to part 3010 of this chapter shall telephone 
Dockets personnel immediately to request that the non-public materials 
be removed from the publicly available materials. Upon receipt of that 
telephone request, Dockets personnel will remove from the publicly 
available materials those materials for which non-public

[[Page 9642]]

treatment are being requested until the end of the next business day in 
order to provide the filer or person with a proprietary interest an 
opportunity to file an application for non-public treatment and the 
non-public materials in accordance with the requirements of this 
subpart. If any filer makes repeated use of this rule, the Secretary 
has discretion to impose additional requirements on this filer as 
necessary to ensure secure filing of non-public materials.
    (b) Any submitter or person with a proprietary interest that 
discovers the inclusion of materials that could have been subject to a 
claim for non-public treatment are contained within a publicly 
available submission made to the Commission in circumstances other than 
through a public filing made in accordance with subpart B to part 3010 
of this chapter shall telephone the Commission personnel to whom the 
submission was directed immediately to request that the non-public 
materials be removed from the publicly available materials. Upon 
receipt of that telephone request, the Commission personnel will remove 
from the publicly available materials those materials for which non-
public treatment are being requested until the end of the next business 
day in order to provide the submitter or person with a proprietary 
interest an opportunity to submit an application for non-public 
treatment and the non-public materials in accordance with the 
requirements of this subpart. If any submitter makes repeated use of 
this rule, the Secretary has discretion to impose additional 
requirements on this submitter as necessary to ensure secure submission 
of non-public materials.
    (c) An application for non-public treatment made under paragraph 
(a) or (b) of this section shall also clearly indicate if any special 
relief is sought. Examples of special relief include a request that any 
person not granted access to the materials under Sec.  3011.300 or 
Sec.  3011.301 perform any or all of the following actions:
* * * * *
    (3) Take reasonable steps to retrieve any materials, and the 
information contained therein, that are claimed to be non-public and 
were disclosed to any person not granted access to the materials under 
Sec.  3011.300 or Sec.  3011.301 prior to the submission of application 
for non-public treatment.

0
51. Amend newly redesignated Sec.  3011.300 by revising paragraphs (a) 
and (c) to read as follows:


Sec.  3011.300   Eligibility for access to non-public materials.

    (a) The following persons may access non-public materials without 
an order issued pursuant to Sec.  3011.301(e):
* * * * *
    (c) Any person not described in paragraph (a) or (b) of this 
section may request access to non-public materials as described in 
Sec.  3011.301, for the purpose of aiding participation in a pending 
Commission proceeding (including compliance proceedings) or aiding the 
initiation of a proceeding before the Commission.

0
52. Amend newly redesignated Sec.  3011.301 by revising paragraphs 
(b)(4), (c), and (e) to read as follows:


Sec.  3011.301   Motion for access to non-public materials.

* * * * *
    (b) * * *
    (4) Specify if actual notice of the motion has been provided to 
each person identified in the application pursuant to Sec.  
3011.201(b)(2). If the motion states that actual notice has been 
provided, the motion shall identify the individual(s) to whom actual 
notice was provided, the date(s) and approximate time(s) of actual 
notice, the method(s) of actual notice (by telephone conversation, 
face-to-face conversation, or an exchange of telephone or email 
messages), and whether the movant is authorized to represent that the 
motion (in whole or in part) has been resolved or is contested by the 
submitter or any other affected person;
* * * * *
    (c) Response. If actual notice of the motion was provided in 
advance of the filing to each person identified pursuant to Sec.  
3011.201(b)(2) by telephone conversation, face-to-face conversation, or 
an exchange of telephone or email messages, a response to the motion is 
due within three business days of the filing of the motion, unless the 
Commission otherwise provides. In all other circumstances, a response 
to the motion is due within seven calendar days of filing the motion, 
unless the Commission otherwise provides.
* * * * *
    (e) Commission ruling. The Commission may enter an order at any 
time after receiving a motion if the movant states that actual notice 
has been given to each person identified pursuant to Sec.  
3011.201(b)(2) and that the movant is authorized to represent that the 
motion is uncontested. In all other circumstances, the Commission will 
enter an order determining if access will be granted after the response 
period described in paragraph (c) of this section has expired. If no 
opposition to the motion has been filed by the submitter or any person 
other than the submitter with a proprietary interest before the 
expiration of the response period described in paragraph (c) of this 
section, the Commission may issue an order granting access, subject to 
the agreed protective conditions. In determining whether to grant 
access to non-public materials, the Commission shall balance the 
interests of the parties consistent with the analysis undertaken by a 
Federal court when applying the protective conditions appearing in 
Federal Rule of Civil Procedure 26(c). If access is granted, access 
shall commence following the issuance of the appropriate order setting 
forth all protective conditions.

0
53. Revise newly redesignated Sec.  3011.302 to read as follows:


Sec.  3011.302   Non-dissemination, use, and care of non-public 
materials.

    (a) No person who has been granted access to non-public materials 
in accordance with Sec.  3011.300 or Sec.  3011.301 may disseminate the 
materials or the information contained therein, in whole or in part, to 
any person not allowed access pursuant to Sec.  3011.300 or Sec.  
3011.301.
    (b) Persons with access to non-public materials under Sec.  
3011.300 or Sec.  3011.301 shall use non-public materials only for the 
purposes for which the non-public materials are supplied.
    (c) Persons with access to non-public materials under Sec.  
3011.300 or Sec.  3011.301 shall protect the non-public materials from 
any person not granted access under Sec.  3011.300 or Sec.  3011.301 by 
using the same degree of care, but no less than a reasonable degree of 
care, to prevent the unauthorized disclosure of these materials as 
those persons, in the ordinary course of business, would be expected to 
use to protect their own proprietary material or trade secrets and 
other internal, confidential, commercially sensitive, and privileged 
information.

0
54. Amend newly redesignated Sec.  3011.303 by revising paragraph (a) 
introductory text to read as follows:


Sec.  3011.303   Sanctions for violating protective conditions.

    (a) If a person who has been granted access to non-public materials 
under Sec.  3011.301 violates the terms of the order granting access, 
the Commission may impose sanctions on the person who violated the 
order, the persons or entities on whose behalf the person was

[[Page 9643]]

acting, or both. The sanctions may include any or all of the following:
* * * * *

0
55. Amend newly redesignated Sec.  3011.304 by revising paragraphs 
(a)(1) and (b) to read as follows:


Sec.  3011.304   Termination and amendment of access to non-public 
materials.

    (a) * * *
    (1) Except as provided in paragraph (b) of this section, access to 
non-public materials granted under Sec.  3011.301 terminates either 
when the Commission issues the final order or report concluding the 
proceeding(s) in which the participant who filed the motion seeking 
access represented that the non-public materials would be used, or when 
the person granted access withdraws or is otherwise no longer involved 
in the proceeding(s), whichever occurs first. For purposes of this 
paragraph, an order or report is not considered final until after the 
possibility of judicial review expires (including the completion of any 
Commission response to judicial review, if applicable).
* * * * *
    (b) Amendment of access. Any person may file a motion seeking to 
amend any protective conditions related to access of non-public 
materials, including extending the timeframe for which access is 
granted or expanding the persons to whom access is to be granted, in 
accordance with Sec.  3011.301.

0
56. Amend newly redesignated Sec.  3011.305 by revising paragraph (a) 
to read as follows:


Sec.  3011.305   Producing non-public materials in non-Commission 
proceedings.

    (a) If a court or other administrative agency issues a subpoena or 
orders production of non-public materials that a person obtained under 
protective conditions ordered by the Commission, the target of the 
subpoena or order shall, within two days of receipt of the subpoena or 
order, notify each person identified pursuant to Sec.  3011.201(b)(2) 
of the pendency of the subpoena or order to allow time to object to 
that production or to seek a protective order or other relief.
* * * * *

0
57. Revise the newly redesignated appendix A to subpart C of part 3011 
to read as follows:

Appendix A to Subpart C of Part 3011--Template Forms Protective 
Conditions Statement

______ (name of submitter of non-public materials) requests 
confidential treatment of non-public materials identified as ____ 
(non-confidential description of non-public materials) (hereinafter 
``these materials'') in Commission Docket No(s). ____ (designation 
of docket(s) in which these materials were filed).

______ (name of participant filing motion) (hereinafter ``the 
movant'') requests access to these materials related to ____ 
(designation of docket(s) or description of proposed proceeding(s) 
in which these materials are to be used) (hereinafter ``this 
matter'').
    The movant has provided to each person seeking access to these 
materials:
    [cir] This Protective Conditions Statement;
    [cir] the Certification to Comply with Protective Conditions;
    [cir] the Certification of Compliance with Protective Conditions 
and Termination of Access; and
    [cir] the Commission's rules applicable to access to non-public 
materials filed in Commission proceedings (subpart C of part 3011 of 
the U.S. Code of Federal Regulations).
    Each person (and any individual working on behalf of that 
person) seeking access to these materials has executed a 
Certification to Comply with Protective Conditions by signing in ink 
or by typing/s/before his or her name in the signature block. The 
movant attaches the Protective Conditions Statement and the executed 
Certification(s) to Comply with Protective Conditions to the motion 
for access filed with the Commission.
    The movant and each person seeking access to these materials 
agree to comply with the following protective conditions:
    In accordance with 39 CFR 3011.303, the Commission may impose 
sanctions on any person who violates these protective conditions, 
the persons or entities on whose behalf the person was acting, or 
both.
    2. In accordance with 39 CFR 3011.300(b), no person involved in 
competitive decision-making for any individual or entity that might 
gain competitive advantage from using these materials shall be 
granted access to these materials. Involved in competitive decision-
making includes consulting on marketing or advertising strategies, 
pricing, product research and development, product design, or the 
competitive structuring and composition of bids, offers or 
proposals. It does not include rendering legal advice or performing 
other services that are not directly in furtherance of activities in 
competition with an individual or entity having a proprietary 
interest in the protected material.
    3. In accordance with 39 CFR 3011.302(a), a person granted 
access to these materials may not disseminate these materials in 
whole or in part to any person not allowed access pursuant to 39 CFR 
3011.300(a) (Commission and court personnel) or 3011.301 (other 
persons granted access by Commission order) except in compliance 
with:
    a. Specific Commission order,
    b. Subpart B of 39 CFR 3011 (procedure for filing these 
materials in Commission proceedings), or
    c. 39 CFR 3011.305 (production of these materials in a court or 
other administrative proceeding).
    4. In accordance with 39 CFR 3011.302(b) and (c), all persons 
granted access to these materials:
    a. Must use these materials only related to this matter; and
    b. must protect these materials from any person not authorized 
to obtain access under 39 CFR 3011.300 or 3011.301 by using the same 
degree of care, but no less than a reasonable degree of care, to 
prevent the unauthorized disclosure of these materials as those 
persons, in the ordinary course of business, would be expected to 
use to protect their own proprietary material or trade secrets and 
other internal, confidential, commercially sensitive, and privileged 
information.
    5. The duties of each person granted access to these materials 
apply to all:
    a. Disclosures or duplications of these materials in writing, 
orally, electronically, or otherwise, by any means, format, or 
medium;
    b. Excerpts from, parts of, or the entirety of these materials;
    c. Written materials that quote or contain these materials; and
    d. Revised, amended, or supplemental versions of these 
materials.
    6. All copies of these materials will be clearly marked as 
``Confidential'' and bear the name of the person granted access.
    7. Immediately after access has terminated pursuant to 39 CFR 
3011.304(a)(1), each person (and any individual working on behalf of 
that person) who has obtained a copy of these materials must execute 
the Certification of Compliance with Protective Conditions and 
Termination of Access. In compliance with 39 CFR 3011.304(a)(2), the 
movant will attach the executed Certification(s) of Compliance with 
Protective Conditions and Termination of Access to the notice of 
termination of access filed with the Commission.
    8. Each person granted access to these materials consents to 
these or such other conditions as the Commission may approve.
Respectfully submitted,

(signature of representative)

/s/--------------------------------------------------------------------

(print name of representative)

(address line 1 of representative)

(address line 2 of representative)

(telephone number of representative)

(e-mail address of representative)

(choose the appropriate response)

Attorney/Non[dash]Attorney Representative for

(name of the movant)

You may delete the instructional text to complete this form. This 
form may be filed as an attachment to the motion for access to non-
public materials under 39 CFR 3011.301(b)(5).

Certification To Comply With Protective Conditions

______ (name of submitter of non-public materials) requests 
confidential treatment of non-public materials identified as ____ 
(non-confidential description of non-public materials) (hereinafter 
``these materials'') filed in Commission Docket No(s). ____ 
(designation of docket(s) in which these materials were filed).


[[Page 9644]]


______ (name of participant filing motion) requests that the 
Commission grant me access to these materials to use related to ____ 
(designation of docket(s) or description of proposed proceeding(s) 
in which these materials are to be used) (hereinafter ``this 
matter'').
    I certify that:
    [cir] I have read and understand the Protective Conditions 
Statement and this Certification to Comply with Protective 
Conditions;
    [cir] I am eligible to receive access to these materials because 
I am not involved in competitive decision-making for any individual 
or entity that might gain competitive advantage from using these 
materials; and
    [cir] I will comply with all protective conditions established 
by the Commission.

(signature of individual receiving access)

/s/--------------------------------------------------------------------

(print name of individual receiving access)

(title of individual receiving access)

(employer of individual receiving access)

(name of the participant filing the motion)

(date)

You may delete the instructional text to complete this form. This 
form may be filed as an attachment to the motion for access to non-
public materials under 39 CFR 3011.301(b)(6).

Certification of Compliance with Protective Conditions and Termination 
of Access

______ (name of submitter of non-public materials) requests 
confidential treatment of non-public materials identified as ____ 
(non-confidential description of non-public materials) (hereinafter 
``these materials'') filed in Commission Docket No(s). ____ 
(designation of docket(s) in which these materials were filed).
    The Commission granted the request by ____ (name of participant 
filing notice) to grant me access to these materials to use related 
to ____ (designation of docket(s) or description of proposed 
proceeding(s) in which these materials are to be used) (hereinafter 
``this matter'').
    I certify that:
    [cir] I accessed, maintained, and used these materials in 
accordance with the protective conditions established by the 
Commission;
    [cir] Effective ____ (date), my access to these materials was 
terminated; and
    [cir] Effective ____ (date), I no longer have any of these 
materials or any duplicates.

(signature of individual granted access)

/s/--------------------------------------------------------------------

(print name of individual granted access)

(title of individual granted access)

(employer of individual granted access)

(name of participant filing notice)

(date)

You may delete the instructional text to complete this form. This 
form should be filed as an attachment to the notice of termination 
of access to non-public materials under 39 CFR 3011.304(a)(2).

0
58. Amend newly redesignated Sec.  3011.400 by revising paragraphs (a) 
through (c) and (f) to read as follows:


Sec.  3011.400   Motion for disclosure of non-public materials.

    (a) Application of this section. This section applies to non-public 
materials during the initial duration of non-public status, up to ten 
years, and any non-public materials for which the Commission enters an 
order extending the duration of that status under Sec.  3011.401(a).
    (b) Motion for disclosure of non-public materials. Any person may 
file a motion with the Commission requesting that non-public materials 
be publicly disclosed. Any part of the motion revealing non-public 
information shall be filed in accordance with subpart B of this part. 
The motion shall justify why the non-public materials should be made 
public and specifically address any pertinent rationale(s) provided in 
the application for non-public treatment. The motion shall specify 
whether actual notice of the motion has been provided to each person 
identified in the application pursuant to Sec.  3011.201(b)(2). If the 
motion states that actual notice has been provided, the motion shall 
identify the individual(s) to whom actual notice was provided, the 
date(s) and approximate time(s) of actual notice, the method(s) of 
actual notice (by telephone conversation, face-to-face conversation, or 
an exchange of telephone or email messages), and whether the movant is 
authorized to represent that the motion (in whole or in part) has been 
resolved or is contested by the submitter or any other affected person. 
The motion shall be filed in the docket in which the materials were 
filed or in the docket in which the materials will be used; in all 
other circumstances, the motion shall be filed in the G docket for the 
applicable fiscal year.
    (c) Response. If actual notice of the motion was provided in 
advance of the filing to each person identified pursuant to Sec.  
3011.201(b)(2) by telephone conversation, face-to-face conversation, or 
an exchange of telephone or email messages, a response to the motion is 
due within three business days of the filing of the motion, unless the 
Commission otherwise provides. In all other circumstances, a response 
to the motion is due within seven calendar days of filing the motion, 
unless the Commission otherwise provides.
* * * * *
    (f) Commission ruling. The Commission may enter an order at any 
time after receiving a motion if the movant states that actual notice 
has been given to each person identified pursuant to Sec.  
3011.201(b)(2) and that the movant is authorized to represent that the 
motion is uncontested. In all other circumstances, the Commission will 
enter an order determining what non-public treatment, if any, will be 
accorded to the materials after the response period described in 
paragraph (c) of this section has expired. The determination of the 
Commission shall follow the applicable standard described in Sec.  
3011.104.

0
59. Amend newly redesignated Sec.  3011.401 by revising paragraphs (c) 
and (f) to read as follows:


Sec.  3011.401   Materials for which non-public treatment has expired.

* * * * *
    (c) Response. A response to the request is due within seven 
calendar days of the filing of the request, unless the Commission 
otherwise provides. Any response opposing the request shall seek an 
extension of non-public status by including an application for non-
public treatment compliant with Sec.  3007.201 of this chapter. This 
extension application shall also include specific facts in support of 
any assertion that commercial injury is likely to occur if the 
information contained in the materials is publicly disclosed despite 
the passage of ten years or the timeframe established by Commission 
order.
* * * * *
    (f) Ruling. The Commission may grant the request at any time after 
the response period described in paragraph (c) of this section has 
expired. The Commission may deny the request and enter an order 
extending the duration of non-public status at any time after the reply 
period described in paragraph (d) of this section has expired. The 
determination of the Commission shall follow the applicable standard 
described in Sec.  3011.104.

0
60. Revise the newly redesignated appendix A to subpart D of part 3011 
to read as follows:

Appendix A to Subpart D of Part 3011--Template Forms

Before the POSTAL REGULATORY COMMISSION WASHINGTON, DC 20268-0001

(Caption)--------------------------------------------------------------
Docket No.-------------------------------------------------------------

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

REQUEST FOR MATERIALS FOR WHICH NON-PUBLIC TREATMENT HAS EXPIRED

____ , 20__ (date)
    On ____ (date non-public materials were initially submitted), 
non-public treatment was requested for the materials identified as 
____ (non-confidential description of non-public materials) 
(hereinafter ``these materials''). Because the non-public treatment 
of these materials has

[[Page 9645]]

expired, I request that these materials be disclosed to the public.

Respectfully submitted,

(signature of representative)

/s/--------------------------------------------------------------------

(print name of representative)

(address line 1 of representative)

(address line 2 of representative)

(telephone number of representative)

(e-mail address of representative)

(choose the appropriate response)
Attorney/Non[dash]Attorney Representative for

(name of the requestor)

    You may delete the instructional text to complete this form and 
file a request under 39 CFR 3011.401(b).

PART 3012--EX PARTE COMMUNICATIONS

0
61. The authority for newly redesignated part 3012 continues to read as 
follows:

    Authority:  39 U.S.C. 404(d)(5); 503; 504; 3661(c); 3662.


0
 62. Amend newly redesignated Sec.  3012.1 by revising paragraph (c) to 
read as follows:


Sec.  3012.1   Applicability.

* * * * *
    (c) The rules in this section are not applicable to international 
mail (IM) proceedings undertaken pursuant to part 3025 of this chapter.
* * * * *

0
63. Amend newly redesignated Sec.  3012.2 by revising paragraph (b)(3) 
to read as follows:


Sec.  3012.2   Definition of ex parte communications.

* * * * *
    (b) * * *
    (3) Communications during the course of off-the-record technical 
conferences associated with a matter before the Commission, or the pre-
filing conference for nature of service cases required by Sec.  
3020.111 of this chapter, where advance public notice of the event is 
provided indicating the matter to be discussed, and the event is open 
to all persons participating in the matter before the Commission;
* * * * *

0
 64. Amend newly redesignated Sec.  3012.4 by revising paragraph (d)(2) 
to read as follows:


Sec.  3012.4   Definitions of persons subject to ex parte communication 
rules.

* * * * *
    (d) * * *
    (2) Commission personnel not participating in the decisional 
process owing to the prohibitions of Sec.  3010.144 of this chapter 
regarding no participation by investigative or prosecuting officers;
* * * * *

0
 65. Amend newly redesignated Sec.  3012.7 by revising paragraphs (b) 
and (c) to read as follows:


Sec.  3012.7   Penalty for violation of ex parte communication rules.

* * * * *
    (b) Upon notice of a communication knowingly made or knowingly 
caused to be made by a participant in violation of Sec.  3012.5(a), the 
Commission or presiding officer may, to the extent consistent with the 
interests of justice and the policy of the underlying statutes, require 
the participant to show cause why the participant's claim or interest 
in the proceeding should not be dismissed, denied, disregarded, or 
otherwise adversely affected on account of such violation.
    (c) The Commission may, to the extent consistent with the interests 
of justice and the policy of the underlying statutes administered by 
the Commission, consider a violation of Sec.  3012.5(a) sufficient 
grounds for a decision adverse to a party who has knowingly committed 
such violation or knowingly caused such violation to occur.

PART 3013--PROCEDURES FOR COMPELLING PRODUCTION OF INFORMATION BY 
THE POSTAL SERVICE

0
 66. The authority for newly redesignated part 3013 continues to read 
as follows:

    Authority:  39 U.S.C. 503; 504; 3651(c); 3652(d).


0
 67. Amend newly redesignated Sec.  3013.1 by revising paragraph (b) to 
read as follows:


Sec.  3013.1   Scope and applicability of other parts of this title.

* * * * *
    (b) Subparts A, B, and D to part 3010 of this chapter apply unless 
otherwise stated in this part or otherwise ordered by the Commission.

0
 68. Amend newly redesignated Sec.  3013.11 by revising paragraphs 
(d)(4) and (e) to read as follows:


Sec.  3013.11   General rule--subpoenas.

* * * * *
    (d) * * *
    (4) That a trade secret or other confidential research, 
development, or commercial information not be revealed or be revealed 
only in a designated way as provided in part 3011 of this chapter; and
* * * * *
    (e) Subpoenas shall be served in the manner provided by Sec.  
3013.14.

0
 69. Amend newly redesignated Sec.  3013.12 by revising paragraphs (a) 
and (d) to read as follows:


Sec.  3013.12   Subpoenas issued without receipt of a third-party 
request.

    (a) A subpoena duly authorized by a majority of the Commissioners 
then holding office may be issued by the Chairman, a designated 
Commissioner, or an administrative law judge under Sec.  3013.11 
without a request having been made by a third party under Sec.  
3013.13.
* * * * *
    (d) Subpoenas issued under this section shall be issued subject to 
the right of the Postal Service and other interested persons to file a 
motion pursuant to Sec.  3010.160(a) of this chapter to quash the 
subpoena, to limit the scope of the subpoena, or to condition the 
subpoena as provided in Sec.  3013.11(d). Such motion shall include any 
objections to the subpoena that are personal to the covered person 
responsible for providing the information being sought. Motions 
alleging undue burden or cost must state with particularity the basis 
for such claims. Answers to the motion may be filed by any interested 
person pursuant to Sec.  3010.160(b) of this chapter. Pending the 
resolution of any such motion, the covered person shall secure and 
maintain the requested information.

0
 70. Amend newly redesignated Sec.  3013.13 by revising paragraphs (a) 
introductory text, (a)(2) through (4), (b) introductory text, and 
(b)(1) and (2) to read as follows:


Sec.  3013.13   Subpoenas issued in response to a third-party request.

    (a) Procedure for requesting and issuing subpoenas when hearings 
have been ordered. A participant in any proceeding in which a hearing 
has been ordered by the Commission may request the issuance of a 
subpoena to a covered person pursuant to Sec.  3013.11.
* * * * *
    (2) Requests for subpoenas under this section shall be made by 
written motion filed with the presiding officer in the manner provided 
in Sec.  3010.160 of this chapter. The Postal Service shall transmit a 
copy of the request to any covered person that it deems likely to be 
affected by the request and shall provide the person requesting the 
subpoena with the name, business address, and business phone number of 
the persons to whom the request has been transmitted.
    (3) Answers to the motion may be filed by the Postal Service, by 
any

[[Page 9646]]

person to whom the Postal Service has transmitted the request, and by 
any other participant. Answers raising objections, including 
allegations of undue burden or cost, must state with particularity the 
basis for such claims. Answers shall be filed as required by Sec.  
3010.160(b) of this chapter.
    (4) The presiding officer shall forward copies of the motion and 
any responses to the Commission together with a recommendation of 
whether or not the requested subpoena should be issued and, if so, the 
scope and content thereof and conditions, if any, that should be placed 
on the subpoena. Copies of the presiding officer's recommendation shall 
be served in accordance with Sec.  3010.127 of this chapter.
* * * * *
    (b) Procedure for requesting and issuing subpoenas when no hearings 
have been ordered. Any person may request the issuance of a subpoena to 
a covered person pursuant to Sec.  3013.11 to enforce an information 
request issued by the Commission or a Commissioner even though no 
hearings have been ordered by the Commission.
    (1) A request for the issuance of a subpoena shall be made by 
motion as provided by Sec.  3010.160 of this chapter. A copy of the 
request shall be served upon the Postal Service as provided by Sec.  
3010.127 of this chapter and by forwarding a copy to the General 
Counsel of the Postal Service, or such other person authorized to 
receive process by personal service, by Express Mail or Priority Mail, 
or by First-Class Mail, Return Receipt requested. The Postal Service 
shall transmit a copy of the request to any covered person that it 
deems likely to be affected by the request and shall provide the person 
requesting the subpoena with the name, business address and business 
phone number of the persons to whom the request has been transmitted. 
Proof of service of the request shall be filed with the Secretary by 
the person requesting the subpoena. The Secretary shall issue a notice 
of the filing of proof of service and the deadline for filing answers 
to the request.
    (2) Answers to the motion may be filed by the Postal Service, by 
any person to whom the Postal Service has transmitted the request, and 
by any other person. Answers raising objections, including allegations 
of undue burden or cost, must state with particularity the basis for 
such claims. Answers shall be filed as required by Sec.  3010.160(b) of 
this chapter.
* * * * *

0
 71. Amend newly redesignated Sec.  3013.14 by revising paragraphs 
(a)(1), (2), and (4), (b)(1) introductory text, and (b)(2) introductory 
text to read as follows:


Sec.  3013.14   Service of subpoenas.

    (a) * * *
    (1) Existing Postal Service officers and employees. In addition to 
electronic service as provided by Sec.  3010.127(a) of this chapter, 
subpoenas directed to existing Postal Service officers and employees 
must be served by personal service upon the General Counsel of the 
Postal Service or upon such other representative of the Postal Service 
as is authorized to receive process. Upon receipt, the subpoena shall 
be transmitted and delivered by the Postal Service to the existing 
officers and employees responsible for providing the information being 
sought by the subpoena. Subpoenas served upon the Postal Service and 
transmitted to Postal Service officers and employees shall be 
accompanied by a written notice of the return date of the subpoena.
    (2) Existing Postal Service agents and contractors. In addition to 
electronic service as provided by Sec.  3010.127(a) of this chapter, 
subpoenas directed to existing Postal Service agents and contractors 
must be served by personal service upon the General Counsel of the 
Postal Service or upon such other representative of the Postal Service 
as is authorized to receive process. Upon receipt, the subpoena shall 
be transmitted and delivered by the Postal Service to existing agents 
and contractors responsible for providing the information being sought 
by the subpoena. Service upon such agents and contractors shall be 
accompanied by a written notice of the return date of the subpoena.
* * * * *
    (4) Service arrangements. Arrangements for service upon the Postal 
Service under paragraph (a)(1) of this section or upon former Postal 
Service officers, employees, agents, or contractors under paragraph 
(a)(3) of this section shall be arranged either by the Commission or by 
the third party who requested issuance of the subpoena.
    (b) * * *
    (1) Return of service. Proof of service under paragraph (a) of this 
section must be filed with the Secretary within two business days 
following service, unless a shorter or longer period is ordered by the 
Commission, and must be accompanied by certifications of:
* * * * *
    (2) Proof of transmission. The Postal Service shall within two 
business days of transmission of a subpoena by the Postal Service to an 
existing Postal Service officer, employee, agent, or contractor 
pursuant to paragraph (a)(1) or (2) of this section, or such shorter or 
longer period ordered by the Commission, file with the Secretary a 
certification of:
* * * * *

0
 72. Amend newly redesignated Sec.  3013.15 by revising paragraph (f) 
to read as follows:


Sec.  3013.15   Duties in responding to a subpoena.

* * * * *
    (f) Request for confidential treatment of information shall be made 
in accordance with part 3011 of this chapter.

0
 73. Revise newly redesignated appendix A to part 3013 to read as 
follows:

Appendix A to Part 3013--Subpoena Form

BILLING CODE 7710-FW-P

[[Page 9647]]

[GRAPHIC] [TIFF OMITTED] TR19FE20.000


[[Page 9648]]


[GRAPHIC] [TIFF OMITTED] TR19FE20.001


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[GRAPHIC] [TIFF OMITTED] TR19FE20.002

BILLING CODE 7710-FW-C

0
 74. Add a new part 3020 to read as follows:

PART 3020--RULES APPLICABLE TO POSTAL SERVICE REQUESTS FOR CHANGES 
IN THE NATURE OF POSTAL SERVICES

Sec.
3020.101 Applicability.
3020.102 Advisory opinion and special studies.
3020.103 Computation of time.
3020.104 Service by the Postal Service.
3020.105 Motions.
3020.106-3020.109 [Reserved]
3020.110 Procedural schedule.
3020.111 Pre-filing requirements.
3020.112 Filing of formal requests.
3020.113 Contents of formal requests.
3020.114 Filing of prepared direct evidence.
3020.115 Mandatory technical conference.
3020.116 Discovery--in general.
3020.117 Interrogatories.
3020.118 Production of documents.
3020.119 Admissions.
3020.120 Rebuttal testimony.
3020.121 Surrebuttal testimony.
3020.122 Hearings.
3020.123 Initial and reply briefs.
Appendix A to Part 3020--Pro Forma N-Case Procedural Schedule

    Authority:  39 U.S.C. 404(d); 503; 504; 3661.


Sec.  3020.101   Applicability.

    The rules in this part govern the procedure with regard to 
proposals of the Postal Service pursuant to 39 U.S.C. 3661 requesting 
from the Commission an advisory opinion on changes in the nature of 
postal services that will generally affect service on a nationwide or 
substantially nationwide basis. The Rules of General Applicability in 
part 3010 of this chapter are also applicable to proceedings conducted 
pursuant to this subpart except that Sec. Sec.  3010.160 through 
3010.164 (Motions); Sec.  3010.310 (Discovery--general policy); Sec.  
3010.311 (Interrogatories for purposes of discovery); Sec.  3010.312 
(Requests for production of documents or things for the purpose of 
discovery); Sec.  3010.321 (Hearings); Sec.  3010.325 (Depositions); 
and Sec.  3010.330 (Briefs) of this chapter do not apply in proceedings 
conducted under this part.


Sec.  3020.102   Advisory opinion and special studies.

    (a) Issuance of opinion. In the absence of a determination of good 
cause for extension, the Commission shall issue an advisory opinion in 
proceedings conducted under this subpart not later than 90 days 
following the filing of the

[[Page 9650]]

Postal Service's request for an advisory opinion.
    (b) Special studies. Advisory opinions shall address the specific 
changes proposed by the Postal Service in the nature of postal 
services. If, in any proceeding, alternatives or related issues of 
significant importance arise, the Commission may, in its discretion, 
undertake an evaluation of such alternative or issues by means of 
special studies, public inquiry proceedings, or other appropriate 
means.


Sec.  3020.103   Computation of time.

    In computing any period of time prescribed or allowed by this 
subpart, the term day means a calendar day unless explicitly specified 
otherwise. The last day of the period so computed is to be included 
unless it is a Saturday, Sunday, or Federal holiday for the Commission, 
in which event the period runs until the end of the next day which is 
neither a Saturday, Sunday, nor Federal holiday.


Sec.  3020.104   Service by the Postal Service.

    By filing its request electronically with the Commission, the 
Postal Service is deemed to have effectively served copies of its 
formal request and its prepared direct evidence upon those persons, 
including the officer of the Commission, who participated in the pre-
filing conference held under Sec.  3020.111. The Postal Service shall 
be required to serve hard copies of its formal request and prepared 
direct evidence only upon those persons who have notified the Postal 
Service, in writing, during the pre-filing conference(s), that they do 
not have access to the Commission's website.


Sec.  3020.105   Motions.

    (a) In general. (1) An application for an order or ruling not 
otherwise specifically provided for in this subpart shall be made by 
motion. A motion shall set forth with particularity the ruling or 
relief sought, the grounds and basis therefor, and the statutory or 
other authority relied upon, and shall be filed with the Secretary and 
served pursuant to the provisions of subpart B to part 3010 of this 
chapter. A motion to dismiss proceedings or any other motion that 
involves a final determination of the proceeding, any motion under 
Sec.  3020.121, and a motion that seeks to extend the deadline for 
issuance of an advisory opinion shall be addressed to the Commission. 
After a presiding officer is designated in a proceeding, all other 
motions in that proceeding, except those filed under part 3011 of this 
chapter, shall be addressed to the presiding officer.
    (2) Within five days after a motion is filed, or such other period 
as the Commission or presiding officer in any proceeding under this 
subpart may establish, any participant to the proceeding may file and 
serve an answer in support of or in opposition to the motion pursuant 
to subpart B to part 3010 of this chapter. Such an answer shall state 
with specificity the position of the participant with regard to the 
ruling or relief requested in the motion and the grounds and basis and 
statutory or other authority relied upon. Unless the Commission or 
presiding officer otherwise provides, no reply to an answer or any 
further responsive document shall be filed.
    (b) Motions to be excused from answering discovery requests. (1) A 
motion to be excused from answering discovery requests shall be filed 
with the Commission within three days of the filing of the 
interrogatory, request for production, or request for admission to 
which the motion is directed. If a motion to be excused from answering 
is made part of an interrogatory, request for production, or request 
for admission, the part to which objection is made shall be clearly 
identified. Claims of privilege shall identify the specific evidentiary 
privilege asserted and state the reasons for its applicability. Claims 
of undue burden shall state with particularity the effort that would be 
required to answer or respond to the request, providing estimates of 
costs and workhours required, to the extent possible.
    (2) An answer to a motion to be excused from answering a discovery 
request shall be filed within two days of the filing of the motion. The 
text of the discovery request and any answer previously provided by the 
Postal Service shall be included as an attachment to the answer.
    (3) Unless the Commission or presiding officer grants the motion to 
be excused from answering, the Postal Service shall answer the 
interrogatory, production request, or request for admission. Answers 
shall be filed in conformance with subpart B to part 3010 of this 
chapter within three days of the date on which a motion to be excused 
from answering is denied.
    (4) The Commission or presiding officer may impose such terms and 
conditions as are just and may, for good cause, issue a protective 
order, including an order limiting or conditioning interrogatories, 
requests for production, and requests for admission as justice requires 
to protect the Postal Service from undue annoyance, embarrassment, 
oppression, or expense.
    (c) Motions to strike. Motions to strike are requests for 
extraordinary relief and are not substitutes for briefs or rebuttal 
evidence in a proceeding. A motion to strike testimony or exhibit 
materials must be submitted in writing at least three days before the 
scheduled appearance of a witness, unless good cause is shown. 
Responses to motions to strike are due within two days.
    (d) Motions for leave to file surrebuttal testimony. Motions for 
leave to file surrebuttal testimony submitted pursuant to Sec.  
3020.121 and any answers thereto must be filed on or before the dates 
provided in the procedural schedule established by the Commission.


Sec.  Sec.  3020.106-3020.109   [Reserved]


Sec.  3020.110   Procedural schedule.

    (a) Notice. Subject to paragraph (b) of this section, the 
Commission shall include in the notice of proceeding issued under Sec.  
3010.151 of this chapter a procedural schedule based upon the pro forma 
schedule set forth in appendix A of this part. The procedural schedule 
shall include:
    (1) A deadline for notices of interventions;
    (2) The date(s) for the mandatory technical conference between the 
Postal Service, Commission staff, and interested parties;
    (3) The deadline for discovery on the Postal Service's direct case;
    (4) The deadline for responses to participant in discovery on the 
Postal Service's case;
    (5) The deadline for participants to confirm their intent to file a 
rebuttal case;
    (6) The date for filing participant rebuttal testimony, if any;
    (7) The dates for filing motions for leave to file surrebuttal 
testimony and answers thereto;
    (8) The date for filing surrebuttal, if any;
    (9) The date(s) for hearings on the Postal Service's direct case, 
rebuttal testimony, and surrebuttal testimony, if any;
    (10) The date for filing initial briefs;
    (11) The date for filing reply briefs; and
    (12) A deadline for issuance of an advisory opinion which is 90 
days from the date of filing.
    (b) Changes for good cause. These dates are subject to change for 
good cause only.
    (c) Incomplete request. If at any time the Commission determines 
that the Postal Service's request is incomplete or that changes made 
subsequent to its filing significantly modify the request,

[[Page 9651]]

the Commission may extend the deadlines established or take any other 
action as justice may require.


Sec.  3020.111   Pre-filing requirements.

    (a) Pre-filing conference required. Prior to the Postal Service 
filing a request that the Commission issue an advisory opinion on a 
proposed change in the nature of postal services subject to the 
procedures established in this subpart, the Postal Service shall 
conduct one or more pre-filing conference(s) with interested persons in 
the proceeding and shall make a good faith effort to address the 
concerns of such persons.
    (b) Purpose. The purpose of a pre-filing conference is to expedite 
consideration of the Postal Service's request for the issuance of 
advisory opinions by informing interested persons of the Postal 
Service's proposal; by providing an opportunity for interested persons 
to give feedback to the Postal Service that can be used by the Postal 
Service to modify or refine its proposal before it is filed at the 
Commission; and by identifying relevant issues and information needed 
to address those issues during proceedings at the Commission.
    (c) Rationale for the proposal. The Postal Service shall make 
available at the pre-filing conference a representative capable of 
discussing the policy rationale behind the Postal Service's proposal 
with interested persons.
    (d) Notice. The Postal Service shall file with the Commission a 
notice of its intent to conduct any pre-filing conference(s) at least 
ten days before the first scheduled conference. The notice filed by the 
Postal Service shall include a schedule of proposed date(s) and 
location(s) for the conference(s). Upon receipt of such notice, the 
Commission shall issue a notice of pre-filing conference(s), which 
shall be published in the Federal Register, and appoint a Public 
Representative.
    (e) Nature of conferences. Discussions during the pre-filing 
conference(s) shall be informal and off the record. No formal record 
will be created during a pre-filing conference.
    (f) Noncompliance. If the Postal Service's noncompliance with the 
requirements of the pre-filing conference under Sec.  3020.113(b)(4) is 
established by a participant, the Commission may, in its discretion, 
consider an extension of, or modification to, the procedural schedule.
    (g) Informal meetings. Interested persons may meet outside the 
context of a pre-filing conference, among themselves or with the Postal 
Service, individually or in groups, to discuss the proposed changes in 
the nature of postal services.


Sec.  3020.112   Filing of formal requests.

    Whenever the Postal Service determines to request that the 
Commission issue an advisory opinion on a proposed change in the nature 
of postal services subject to this subpart, the Postal Service shall 
file with the Commission a formal request for such an opinion in 
accordance with the requirements of subpart B to part 3010 of this 
chapter and Sec.  3020.113. The request shall be filed not less than 90 
days before the proposed effective date of the change in the nature of 
postal services involved. Within five days after the Postal Service has 
filed a formal request for an advisory opinion in accordance with this 
section, the Secretary shall lodge a notice thereof with the director 
of the Office of the Federal Register for publication in the Federal 
Register.


Sec.  3020.113   Contents of formal requests.

    (a) General requirements. A formal request filed under this subpart 
shall include such information and data and such statements of reasons 
and basis as are necessary and appropriate to fully inform the 
Commission and interested persons of the nature, scope, significance, 
and impact of the proposed change in the nature of postal services and 
to show that the change in the nature of postal services is in 
accordance with and conforms to the policies established under title 
39, United States Code.
    (b) Specific information. A formal request shall include:
    (1) A detailed statement of the present nature of the postal 
services proposed to be changed and the change proposed;
    (2) The proposed effective date for the proposed change in the 
nature of postal services;
    (3) A full and complete statement of the reasons and basis for the 
Postal Service's determination that the proposed change in the nature 
of postal services is in accordance with and conforms to the policies 
of title 39, United States Code;
    (4) A statement that the Postal Service has completed the pre-
filing conference(s) required by Sec.  3020.111, including the time and 
place of each conference and a certification that the Postal Service 
has made a good faith effort to address concerns of interested persons 
about the Postal Service's proposal raised at the pre-filing 
conference(s);
    (5) The prepared direct evidence required by Sec.  3020.114;
    (6) The name of an institutional witness capable of providing 
information relevant to the Postal Service's proposal that is not 
provided by other Postal Service witnesses; and
    (7) Confirmation that Postal Service witnesses, including its 
institutional witness, will be available for the mandatory technical 
conference provided for in Sec.  3020.115.
    (c) Additional information. The Commission may request additional 
information from the Postal Service concerning a formal request.
    (d) Reliance on prepared direct evidence. The Postal Service may 
incorporate detailed data, information, and statements of reason or 
basis contained in prepared direct evidence submitted under paragraph 
(b)(5) of this section into its formal request by reference to specific 
portions of the prepared direct evidence.


Sec.  3020.114   Filing of prepared direct evidence.

    As part of a formal request for an advisory opinion under this 
subpart, the Postal Service shall file all of the prepared direct 
evidence upon which it proposes to rely in the proceeding on the record 
before the Commission to establish that the proposed change in the 
nature of postal services is in accordance with and conforms to the 
policies of title 39, United States Code. Such prepared direct evidence 
shall be in the form of prepared written testimony and documentary 
exhibits which shall be filed in accordance with Sec. Sec.  3010.322 
and 3010.323 of this chapter.


Sec.  3020.115   Mandatory technical conference.

    (a) Date. A date for a mandatory technical conference shall be 
included in the procedural schedule required by Sec.  3020.110. The 
date for this technical conference shall be set based upon the pro 
forma schedule set forth in appendix A to this part. The conference 
shall be held at the offices of the Commission.
    (b) Witnesses. The Postal Service shall make available at the 
technical conference each witness whose prepared direct testimony was 
filed pursuant to Sec.  3020.114. If the Postal Service seeks for any 
witness to be excused on the basis that the witness's testimony neither 
presents nor is based upon technical information, it shall make such a 
motion concurrent with its request.
    (c) Purpose. The purpose of the technical conference is to provide 
an

[[Page 9652]]

informal, off-the-record opportunity for participants, the officer of 
the Commission representing the interests of the general public, and 
Commission staff to clarify technical issues and to identify and 
request information relevant to an evaluation of the nature of changes 
to postal services proposed by the Postal Service. The technical 
conference is not part of the formal record in the proceeding.
    (d) Relation to discovery process. Information obtained during the 
mandatory technical conference may be used to discover additional 
relevant information by means of the formal discovery mechanisms 
provided for in Sec. Sec.  3020.116 through 3020.119.
    (e) Record. Information obtained during, or as a result of, the 
mandatory technical conference is not part of the decisional record 
unless admitted under the standards of Sec.  3010.322(a) of this 
chapter.


Sec.  3020.116   Discovery--in general.

    (a) Purpose. The rules in this subpart allow discovery that is 
reasonably calculated to lead to admissible evidence during a 
proceeding. The notice and scheduling order issued pursuant to Sec.  
3020.110 shall provide that discovery will be scheduled to end at least 
three days prior to the commencement of hearings.
    (b) Informal discovery. The discovery procedures in this section 
and Sec. Sec.  3020.117 through 3020.119 are not exclusive. 
Participants are encouraged to engage in informal discovery whenever 
possible to clarify exhibits and testimony. The results of these 
efforts may be introduced into the record by stipulation, or by other 
appropriate means. In the interest of reducing motion practice, 
participants also are expected to use informal means to clarify 
questions and to identify portions of discovery requests considered 
overbroad or burdensome.
    (c) Failure to obey orders or rulings. If a participant fails to 
obey an order of the Commission or ruling of presiding officer to 
provide or permit discovery pursuant to this section or Sec. Sec.  
3020.117 through 3020.119, the Commission or the presiding officer may 
issue orders or rulings in regard to the failure as are just. These 
orders or rulings may, among other things:
    (1) Direct that certain designated facts are established for the 
purposes of the proceeding;
    (2) Prohibit a participant from introducing certain designated 
matters in evidence;
    (3) Strike certain evidence, requests, pleadings, or parts thereof; 
or
    (4) Such other relief as the Commission deems appropriate.


Sec.  3020.117   Interrogatories.

    (a) Service and contents. In the interest of expedition and limited 
to information which appears reasonably calculated to lead to the 
discovery of admissible evidence, any participant in a proceeding may 
propound to any other participant no more than a total of 25 written, 
sequentially numbered interrogatories, by witness, requesting non-
privileged information relevant to the subject matter of the 
proceeding. An interrogatory with subparts that are logically or 
factually subsumed within and necessarily related to the primary 
question will be counted as one interrogatory. The respondent shall 
answer each interrogatory and furnish such information as is available. 
The participant propounding the interrogatories shall file them with 
the Commission in conformance with part 3010, subpart B, of this 
chapter. Follow-up interrogatories that clarify or elaborate on the 
answer to an earlier discovery request may be filed after the period 
for intervenor discovery on the Postal Service case ends, if the 
interrogatories are filed within seven days of receipt of the answer to 
the previous interrogatory. In extraordinary circumstances, follow-up 
interrogatories may be filed not less than six days prior to the filing 
date for the participant's rebuttal or surrebuttal testimony.
    (b) Answers. (1) Answers to interrogatories shall be prepared so 
that they can be incorporated into the record as written cross-
examination. Each answer shall begin on a separate page, identify the 
individual responding and the relevant testimony number, if any, the 
participant who propounded the interrogatory, and the number and text 
of the question.
    (2) Each interrogatory shall be answered separately and fully in 
writing by the individual responsible for the answer, unless it is 
objected to, in which event the reasons for objection shall be stated 
in a motion to be excused from answering in the manner prescribed by 
paragraph (c) of this section.
    (3) An interrogatory otherwise proper is not necessarily 
objectionable because an answer would involve an opinion or contention 
that relates to fact or the application of law to fact.
    (4) Answers filed by a respondent shall be filed in conformance 
with subpart B to part 3010 of this chapter within seven days of the 
filing of the interrogatories or within such other period as may be 
fixed by the Commission or presiding officer. Any other period fixed by 
the Commission or presiding officer shall end before the conclusion of 
the hearing.
    (c) Motion to be excused from answering. A respondent may, in lieu 
of answering an interrogatory, file a motion pursuant to Sec.  
3020.105(b) to be excused from answering.
    (d) Supplemental answers. A respondent has a duty to timely amend a 
prior answer if it obtains information upon the basis of which it knows 
that the answer was incorrect when made or is no longer true. A 
respondent shall serve supplemental answers to update or to correct 
responses whenever necessary, up until the date the answer could have 
been accepted into evidence as written cross-examination. A respondent 
shall indicate whether the answer merely supplements the previous 
answer to make it current or whether it is a complete replacement for 
the previous answer.


Sec.  3020.118   Production of documents.

    (a) Service and contents. (1) In the interest of expedition and 
limited to information which appears reasonably calculated to lead to 
the discovery of admissible evidence, any participant may serve on any 
other participant a request to produce and permit the participant 
making the request, or someone acting on behalf of the participant, to 
inspect and copy any designated documents or things that constitute or 
contain matters, not privileged, that are relevant to the subject 
matter involved in the proceeding and that are in the custody or 
control of the respondent.
    (2) The request shall set forth the items to be inspected either by 
individual item or category, and describe each item and category with 
reasonable particularity, and shall specify a reasonable time, place, 
and manner of making inspection. The participant requesting the 
production of documents or items shall file its request with the 
Commission in conformance with part 3010, subpart B, of this chapter.
    (b) Answers. (1) The respondent shall file an answer to a request 
under paragraph (a) of this section with the Commission in conformance 
with subpart B to part 3010 of this chapter within seven days after the 
request is filed, or within such other period as may be fixed by the 
Commission or presiding officer. The answer shall state, with respect 
to each item or category, whether inspection will be permitted as 
requested.
    (2) If the respondent objects to an item or category, it shall 
state the reasons for objection in a motion to be excused

[[Page 9653]]

from answering as prescribed by paragraph (c) of this section.
    (c) Motions to be excused from answering. A respondent may, in lieu 
of answering a request for production, file a motion pursuant to Sec.  
3020.105(b) to be excused from answering.


Sec.  3020.119   Admissions.

    (a) Service and content. In the interest of expedition, any 
participant may serve upon any other participant a written request for 
the admission of any relevant, unprivileged facts, including the 
genuineness of any documents or exhibits to be presented in the 
hearing. The admission shall be for purposes of the pending proceeding 
only. The participant requesting the admission shall file its request 
with the Commission in conformance with subpart B to part 3010 of this 
chapter.
    (b) Answers. (1) A matter for which admission is requested shall be 
separately set forth in the request and is deemed admitted unless, 
within seven days after the request is filed, or within such other 
period as may be established by the Commission or presiding officer, 
the respondent files a written answer or motion to be excused from 
answering pursuant to paragraph (c) of this section. Answers to 
requests for admission shall be filed with the Commission in 
conformance with subpart B to part 3010 of this chapter.
    (2) If the answer filed by the respondent does not admit a matter 
asserted in the participant's request, it must either specifically deny 
the matter or explain in detail why it cannot truthfully admit or deny 
the asserted matter. When good faith requires, the respondent must 
admit a portion of the asserted matter and either deny or qualify the 
remaining portion of such asserted matter. Lack of knowledge for 
failing to admit or deny can be invoked only after reasonable inquiry 
if the information already possessed or reasonably obtainable is 
insufficient to enable an admission or denial.
    (3) Grounds for objection to requests for admission must be stated. 
Objections cannot be based solely upon the ground that the request 
presents a genuine issue for trial.
    (c) Motion to be excused from answering. A respondent may, in lieu 
of answering a request for admission, file a motion pursuant to Sec.  
3020.105(b) to be excused from answering.


Sec.  3020.120   Rebuttal testimony.

    (a) Timing. Any participant may file rebuttal testimony on or 
before the date established for that purpose by the procedural schedule 
issued by the Commission pursuant to Sec.  3020.110. Hearing on 
rebuttal testimony shall proceed as set forth in the procedural 
schedule.
    (b) Limitations. The scope of rebuttal testimony shall be limited 
to material issues relevant to the specific proposal made by the Postal 
Service. Rebuttal testimony shall not propose, or seek to address, 
alternatives to the Postal Service's proposal.
    (c) Intent to file rebuttal testimony. If a participant wishes to 
file rebuttal testimony, it must file a document confirming its intent 
to file rebuttal testimony with the Commission by the date provided in 
the procedural schedule.
    (d) Adjustment of dates. If no participant files a confirmation of 
intent to file rebuttal testimony on or before the date established by 
the procedural schedule issued by the Commission pursuant to Sec.  
3020.110, the Commission may adjust other dates in the procedural 
schedule as it deems to be necessary and appropriate.


Sec.  3020.121   Surrebuttal testimony.

    (a) Scope. Surrebuttal testimony shall be limited to material 
issues relevant to the Postal Service's proposal and to the rebuttal 
testimony which the surrebuttal testimony seeks to address. Testimony 
that exceeds the scope of the Postal Service's proposal or rebuttal 
testimony shall not be permitted.
    (b) Motion for leave to file surrebuttal. A participant who wishes 
to file surrebuttal testimony must obtain prior approval by filing with 
the Commission a motion for leave to file surrebuttal pursuant to Sec.  
3020.105(d) on or before the date provided in the procedural schedule 
established by the Commission. The motion must summarize the 
surrebuttal testimony the participant wishes to file and must identify 
and explain exceptional circumstances that require the filing of such 
testimony. The moving participant bears the burden of demonstrating 
exceptional circumstances that warrant a grant of the motion. Answers 
to such motions may be filed as provided in Sec.  3020.105(d).
    (c) Deadline for filing surrebuttal authorized by the Commission. 
In the event the Commission grants the motion for leave to file 
surrebuttal testimony, the moving participant must file its proposed 
surrebuttal testimony by the date provided in the procedural schedule 
established pursuant to Sec.  3020.110.
    (d) Adjustment of procedural dates. If no participant files a 
motion for leave to file surrebuttal testimony, or if the Commission 
denies all such motions as may be filed, the remaining dates in the 
procedural schedule may be adjusted by the Commission as it deems to be 
necessary and appropriate.


Sec.  3020.122   Hearings.

    (a) Initiation. Hearings for the purpose of taking evidence shall 
be initiated by the issuance of a notice and scheduling order pursuant 
to Sec.  3020.110.
    (b) Presiding officer. All hearings shall be held before the 
Commission sitting en banc with a duly designated presiding officer.
    (c) Entering of appearances. The Commission or the presiding 
officer before whom the hearing is held will cause to be entered on the 
record all appearances together with a notation showing on whose behalf 
each such appearance has been made.
    (d) Order of procedure. In requests for advisory opinions before 
the Commission, the Postal Service shall be the first participant to 
present its case. Unless otherwise ordered by the Commission, the 
presiding officer shall direct the order of presentation of all other 
participants and issue such other procedural orders as may be necessary 
to assure the orderly and expeditious conclusion of the hearing.
    (e) Presentation of the evidence--(1) Presentations by 
participants. Each participant shall have the right in public hearings 
to present evidence relevant to the Postal Service's proposal, cross-
examine (limited to testimony adverse to the participant conducting the 
cross-examination), object, move, and argue. The participant's 
presentation shall be in writing and may be accompanied by a trial 
brief or legal memoranda. (Legal memoranda on matters at issue will be 
welcome at any stage of the proceeding.) When objections to the 
admission or exclusion of evidence before the Commission or the 
presiding officer are made, the grounds relied upon shall be stated. 
Formal exceptions to rulings are unnecessary.
    (2) Written cross-examination. Written cross-examination will be 
utilized as a substitute for oral cross-examination whenever possible, 
particularly to introduce factual or statistical evidence. Designations 
of written cross-examination shall be served in accordance with part 
3010, subpart B, of this chapter no later than three days before the 
scheduled appearance of a witness. Designations shall identify every 
item to be offered as evidence, listing the participant who initially 
posed the discovery request, the witness and/or party to whom the 
question was addressed (if different from the witness answering), the 
number of the request and, if more than one answer is provided, the 
dates of all

[[Page 9654]]

answers to be included in the record. (For example, ``PR-T1-17 to USPS 
witness Jones, answered by USPS witness Smith (March 1, 1997) as 
updated (March 21, 1997)''). When a participant designates written 
cross-examination, two hard copies of the documents (unfastened, 
single-spaced, not hole-punched) are to be included and shall 
simultaneously be submitted to the Secretary of the Commission. The 
Secretary of the Commission shall prepare for the record a packet 
containing all materials designated for written cross-examination in a 
format that facilitates review by the witness and counsel. The witness 
will verify the answers and materials in the packet, and they will be 
entered into the transcript by the presiding officer. Counsel may 
object to written cross-examination at that time, and any designated 
answers or materials ruled objectionable will not be admitted into the 
record.
    (3) Oral cross-examination. Oral cross-examination will be 
permitted for clarifying written cross-examination and for testing 
assumptions, conclusions or other opinion evidence. Notices of intent 
to conduct oral cross-examination shall be filed three or more days 
before the announced appearance of the witness and shall include 
specific references to the subject matter to be examined and page 
references to the relevant direct testimony and exhibits. A participant 
intending to use complex numerical hypotheticals, or to question using 
intricate or extensive cross-references, shall provide adequately 
documented cross-examination exhibits for the record. Copies of these 
exhibits shall be filed at least two days (including one working day) 
before the scheduled appearance of the witness. They may be filed 
online or delivered in hardcopy form to counsel for the witness, at the 
discretion of the participant. If a participant has obtained permission 
to receive service of documents in hardcopy form, hardcopy notices of 
intent to conduct oral cross-examination of witnesses for that 
participant shall be delivered to counsel for that participant and 
served three or more working days before the announced appearance of 
the witness. Cross-examination exhibits shall be delivered to counsel 
for the witness at least two days (including one working day) before 
the scheduled appearance of the witness.
    (f) Limitations on presentation of the evidence. The taking of 
evidence shall proceed with all reasonable diligence and dispatch, and 
to that end, the Commission or the presiding officer may limit 
appropriately:
    (1) The number of witnesses to be heard upon any issue;
    (2) The examination by any participant to specific issues; and
    (3) The cross-examination of a witness to that required for a full 
and true disclosure of the facts necessary for exploration of the 
Postal Service's proposal, disposition of the proceeding, and the 
avoidance of irrelevant, immaterial, or unduly repetitious testimony.
    (g) Motions during hearing. Except as provided in Sec.  
3020.105(a), after a hearing has commenced in a proceeding, a request 
may be made by motion to the presiding officer for any procedural 
ruling or relief desired. Such motions shall set forth the ruling or 
relief sought, and state the grounds therefore and statutory or other 
supporting authority. Motions made during hearings may be stated orally 
upon the record, except that the presiding officer may require that 
such motions be reduced to writing and filed separately. Any 
participant shall have the opportunity to answer or object to such 
motions at the time and in the manner directed by the presiding 
officer.
    (h) Rulings on motions. The presiding officer is authorized to rule 
upon any motion not reserved for decision by the Commission in Sec.  
3020.105(a). This section shall not preclude a presiding officer from 
referring any motion made in hearing to the Commission for ultimate 
determination.
    (i) Transcript corrections. Corrections to the transcript of a 
hearing shall not be requested except to correct a material substantive 
error in the transcription made at the hearing.
    (j) Field hearings. Field hearings will not be held except upon a 
showing by any participant and determination by the Commission that 
there is exceptional need or utility for such a hearing which cannot be 
accomplished by alternative means.


Sec.  3020.123   Initial and reply briefs.

    (a) When filed. At the close of the taking of testimony in any 
proceeding, participants may file initial and reply briefs. The dates 
for filing initial and reply briefs shall be established in the 
procedural schedule issued pursuant to Sec.  3020.110. Such dates may 
be modified by subsequent order issued by the Commission or the 
presiding officer.
    (b) Contents. Each brief filed with the Commission shall be as 
concise as possible and shall include the following in the order 
indicated:
    (1) A subject index with page references, and a list of all cases 
and authorities relied upon, arranged alphabetically, with references 
to the pages where the citation appears;
    (2) A concise statement of the case from the viewpoint of the 
filing participant;
    (3) A clear, concise, and definitive statement of the position of 
the filing participant as to the Postal Service request;
    (4) A discussion of the evidence, reasons, and authorities relied 
upon with precise references to the record and the authorities; and
    (5) Proposed findings and conclusions with appropriate references 
to the record or the prior discussion of the evidence and authorities 
relied upon.
    (c) Length. Initial briefs filed by all participants other than the 
Postal Service shall not exceed 14,000 words. Initial briefs filed by 
the Postal Service shall not exceed 21,000 words. Reply briefs filed by 
all participants other than the Postal Service shall not exceed 7,000 
words. Reply briefs filed by the Postal Service shall not exceed 10,500 
words. All participants shall attest to the number of words contained 
in their brief. Tables of cases, tables of citations, and appendices 
shall not be considered as part of the word count.
    (d) Include by reference. Briefs before the Commission or a 
presiding officer shall be completely self-contained and shall not 
incorporate by reference any portion of any other brief, pleading, or 
document.
    (e) Excerpts from the record. Testimony and exhibits shall not be 
quoted or included in briefs except for short excerpts pertinent to the 
argument presented.
    (f) Filing and service. Briefs shall be filed in the form and 
manner and served as required by subpart B to part 3010 of this 
chapter.
    (g) Statements of Position. As an alternative to filing a formal 
brief, a participant may file a Statement of Position. To the extent 
practicable, the contents of each Statement of Position should include 
a clear, concise, and definitive statement of the position of the 
filing participant as to the Postal Service request, as well as any 
points or factors in the existing record that support the participant's 
position. Statements of Position shall be limited to the existing 
record and shall not include any new evidentiary material.

Appendix A to Part 3020--Pro Forma N-Case Procedural Schedule

[[Page 9655]]



------------------------------------------------------------------------
       Line                     Action                   Day number
------------------------------------------------------------------------
1.................  Pre-Filing Consultations \1\..  n/a.
2.................  Commission Order \2\..........  n/a.
3.................  Filing of Postal Service        0.
                     Request.
4.................  Commission Notice and Order     1-3.
                     \3\.
5.................  Technical Conference..........  10.
6.................  Participant Discovery on        28.
                     Postal Service Case Ends.
7.................  Responses to Participant        35.
                     Discovery on Postal Service
                     Case.
8.................  Participants Confirm Intent to  37.\4\
                     File a Rebuttal Case.
9.................  Filing of Rebuttal Cases (if    42.
                     submitted).
10................  Deadline for Motions to Leave   44.\5\
                     to File Surrebuttal.
11................  Deadline for Answers to         46.
                     Motions for Surrebuttal.
12................  Filing of Surrebuttal Cases     49.\6\
                     (if authorized).
13................  Hearings:                       ....................
                       Hearings (with no Rebuttal   42-44.
                        Cases).
                       Hearings (with Rebuttal      49-51.
                        Cases, but no requests for
                        leave to file Surrebuttal
                        Cases).
                       Hearings (with Rebuttal      54-56.
                        Cases and requests for
                        leave to file Surrebuttal
                        Cases).
14................  Initial Briefs................  (7 days after
                                                     conclusion of
                                                     hearings).
15................  Reply Briefs..................  (7 days after filing
                                                     of Initial Briefs).
 16...............  Target Issuance Date of         90.
                     Advisory Opinion.
------------------------------------------------------------------------
\1\ The Postal Service would initiate pre-filing consultations and would
  file a notice with the Commission of such consultations prior to their
  commencement.
\2\ This order would appoint a Public Representative.
\3\ This notice and order would announce the Postal Service request, set
  a deadline for interventions, set a date for a technical conference,
  and establish a procedural schedule.
\4\ If no participant elects to file a rebuttal case, hearings begin on
  Day 42.
\5\ If no surrebuttal cases are requested, hearings begin on Day 49.
\6\ If one or more surrebuttal cases are requested (whether or not
  authorized by the Commission), hearings begin on Day 54.

PART 3021--RULES FOR APPEALS OF POSTAL SERVICE DETERMINATIONS TO 
CLOSE OR CONSOLIDATE POST OFFICES

0
 75. The authority for newly redesignated part 3021 continues to read 
as follows:

    Authority:  39 U.S.C. 404(d).


0
 76. Amend newly redesignated Sec.  3021.2 by revising paragraph (b) to 
read as follows:


Sec.  3021.2   Applicability.

* * * * *
    (b) Subparts A through D to part 3010 of this chapter apply to 
appeals of post office closings or consolidations.
* * * * *

0
 77. Amend newly redesignated Sec.  3021.13 by revising paragraph (a) 
to read as follows:


Sec.  3021.13   Deadlines for appeals.

    (a) In general. If the Postal Service has issued a final 
determination to close or consolidate a post office, an appeal is due 
within 30 days of the final determination being made available in 
conformance with Sec.  3021.3(b).
* * * * *

0
 78. Revise newly redesignated Sec.  3021.14 to read as follows:


Sec.  3021.14   Participation by others.

    (a) A person served by the post office to be closed or consolidated 
pursuant to the Postal Service written determination under review who 
desires to intervene in the proceeding, or any other interested person, 
or any counsel, agent, or other person authorized or recognized by the 
Postal Service as such interested person's representative or the 
representative of such interested person's recognized group, such as 
Postmasters, may participate in an appeal by sending written comments 
to the Postal Regulatory Commission in the manner described in Sec.  
3021.11.
    (b) Persons may submit comments supporting or opposing a Commission 
order returning the entire matter to the Postal Service for further 
consideration. Comments must be filed in accordance with the deadlines 
established in Sec. Sec.  3021.41 through 3021.43. Commenters may use 
PRC Form 61, which is available on the Commission's website, http://www.prc.gov.

0
 79. Amend newly redesignated Sec.  3021.40 by revising paragraph (a) 
to read as follows:


Sec.  3021.40   Participant statement.

    (a) When a timely Petition for Review of a decision to close or 
consolidate a post office is filed, the Secretary shall furnish 
petitioner with a copy of PRC Form 61. This form is designed to inform 
petitioners on how to make a statement of the petitioner's arguments in 
support of the petition.
* * * * *

PART 3022--RULES FOR COMPLAINTS

0
 80. The authority for newly redesignated part 3022 continues to read 
as follows:

    Authority:  39 U.S.C. 503; 3622.


0
 81. Revise newly redesignated Sec.  3022.1 to read as follows:


Sec.  3022.1   Applicability.

    (a) The rules in this part govern the procedure for complaints 
filed under 39 U.S.C. 3662 that meet the form and manner requirements 
of subpart B of this part. Part 3010 of this chapter applies unless 
otherwise stated in this part or otherwise ordered by the Commission.
    (b) Subpart E to part 3010 of this chapter does not apply to this 
part unless and until the Commission makes a finding under Sec.  
3022.30(a)(1) that the complaint raises material issues of fact or law 
and that the issues shall be considered through a hearing on the 
record.

0
 82. Amend newly redesignated Sec.  3022.10 by revising paragraph 
(a)(10) to read as follows:


Sec.  3022.10   Complaint contents.

    (a) * * *
    (10) Include a certification that the complaint has been served on 
the United States Postal Service as required by Sec.  3022.11.
* * * * *

0
 83. Revise newly redesignated Sec.  3022.11 to read as follows:


Sec.  3022.11   Service.

    Any person filing a complaint must simultaneously serve a copy of 
the complaint on the Postal Service at this address: 
[email protected].

[[Page 9656]]

A person without internet access may contact the Secretary to obtain 
approval for alternative methods of service.

0
 84. Amend newly redesignated Sec.  3022.12 by revising paragraph 
(b)(2) to read as follows:


Sec.  3022.12   Pleadings filed in response to a complaint.

* * * * *
    (b) * * *
    (2) If the Commission invokes the rate or service inquiry special 
procedures under Sec.  3022.13 to the complaint, the answer is due 
contemporaneously with the Postal Service's report under Sec.  3023.11 
of this chapter if the complaint has not been resolved by that date.
* * * * *

0
 85. Amend newly redesignated Sec.  3022.13 by revising paragraphs (b) 
and (c) to read as follows:


Sec.  3022.13   Conditions for applying rate or service inquiry 
procedures to complaints.

* * * * *
    (b) The Commission may in its discretion, sua sponte, attempt to 
resolve a complaint through the rate or service inquiry procedures of 
Sec.  3023.11 of this chapter if the Commission finds that there is a 
reasonable likelihood that such procedures may result in resolution of 
the complaint. The Commission will issue an order to apply the 
procedures of Sec.  3023.11 of this chapter prior to the due date for 
the Postal Service answer set forth in Sec.  3022.12.
    (c) If the Commission determines that application of paragraph (a) 
of this section is appropriate and the Postal Service is unable to 
resolve the complaint within 45 days, or such other period of time as 
ordered by the Commission, the Postal Service shall file its answer in 
accordance with Sec.  3022.12(b)(2).

0
 86. Revise newly redesignated Sec.  3022.20 to read as follows:


Sec.  3022.20   Sufficiency of information.

    If, after review of the information submitted pursuant to this 
part, the Commission determines that additional information is 
necessary to enable it to evaluate whether the complaint raises 
material issues of fact or law, the Commission shall, in its 
discretion, either require the complainant and/or the Postal Service to 
provide additional information as deemed necessary, issue an 
appropriate order to appoint an investigator in accordance with Sec.  
3022.21, or do both.

0
 87. Amend newly redesignated Sec.  3022.30 by revising paragraph 
(a)(1) to read as follows:


Sec.  3022.30   Beginning proceedings on complaints.

    (a) * * *
    (1) A notice and order in accordance with Sec.  3010.151 of this 
chapter that finds the complaint raises one or more material issues of 
fact or law and begin proceedings on the complaint; or
* * * * *

0
 88. Amend newly redesignated Sec.  3022.41 by revising paragraph (a) 
introductory text to read as follows:


Sec.  3022.41   Satisfaction.

    (a) If a complaint is resolved informally, in whole or in part, 
subsequent to Commission action under Sec.  3022.30(a)(1), the 
complainant must promptly file:
* * * * *

PART 3023--RULES FOR RATE OR SERVICE INQUIRIES BY THE PUBLIC ABOUT 
POSTAL SERVICE ACTIVITY


0
 89. The authority for newly redesignated part 3023 continues to read 
as follows:

    Authority:  39 U.S.C. 503; 3662.

0
 90. Amend newly redesignated Sec.  3023.11 by revising paragraph (b) 
to read as follows:


Sec.  3023.11   Rate or service inquiry procedures.

* * * * *
    (b) The Commission will monitor all rate or service inquiries to 
determine if Commission action under Sec.  3023.12 is appropriate.
* * * * *

0
 91. Revise newly redesignated Sec.  3023.12 to read as follows:


Sec.  3023.12   Treatment as a complaint.

    If the Commission receives a volume of rate or service inquiries on 
the same or similar issue such that there may be cause to warrant 
treatment as a complaint, it may appoint an investigator to review the 
matter under Sec.  3022.21 of this chapter or appoint a Public 
Representative representing the interests of the general public to 
pursue the matter.

PART 3024--SPECIAL RULES FOR COMPLAINTS ALLEGING VIOLATIONS OF 39 
U.S.C. 404a

0
 92. The authority for newly redesignated part 3024 continues to read 
as follows:

    Authority:  39 U.S.C. 404a; 3662.


0
 93. Revise newly redesignated Sec.  3024.1 to read as follows:


Sec.  3024.1   Applicability.

    The rules in this part govern proceedings filed under 39 U.S.C. 
3662 alleging violations of 39 U.S.C. 404a that meet the requirements 
of Sec. Sec.  3022.2 and 3022.10 of this chapter.

0
 94. Amend newly redesignated Sec.  3024.5 by revising paragraph (a) 
introductory text to read as follows:


Sec.  3024.5   Postal Service rules that create an unfair competitive 
advantage.

    (a) A complaint alleging a violation of 39 U.S.C. 404a(a)(1) must 
show that a Postal Service rule, regulation, or standard has the effect 
of:
* * * * *

PART 3025--PROCEDURES RELATED TO COMMISSION VIEWS SUBMITTED TO THE 
SECRETARY OF STATE

0
 95. The authority for part 3025 continues to read as follows:

    Authority:  39 U.S.C. 407; 503.


0
 96. The heading for newly redesignated part 3025 is revised to read as 
set forth above.

PART 3030--REGULATION OF RATES FOR MARKET DOMINANT PRODUCTS

0
 97. The authority for newly redesignated part 3030 continues to read 
as follows:

    Authority:  39 U.S.C. 503; 3622.


0
 98. Amend newly redesignated Sec.  3030.501 by revising paragraphs 
(b)(1) through (3), (d), (e), (h) through (l), and (m)(1) and (2) to 
read as follows:


Sec.  3030.501   Definitions.

* * * * *
    (b) * * *
    (1) In the case of a notice of a Type 1-A or Type 1-B rate 
adjustment filed 12 or more months after the last Type 1-A or Type 1-B 
notice of rate adjustment, the full year limitation on the size of rate 
adjustments calculated pursuant to Sec.  3030.521;
    (2) In the case of a notice of a Type 1-A or Type 1-B rate 
adjustment filed less than 12 months after the last Type 1-A or Type 1-
B notice of rate adjustment, the partial year limitation on the size of 
rate adjustments calculated pursuant to Sec.  3030.522; and
    (3) In the case of a notice of a Type 1-C rate adjustment, the 
annual limitation calculated pursuant to Sec.  3030.521 or Sec.  
3030.522, as applicable, for the most recent notice of a Type 1-A or 
Type 1-B rate adjustment.
* * * * *
    (d) De minimis rate increase means a rate adjustment described in 
Sec.  3030.530.
    (e) Maximum rate adjustment means the maximum rate adjustment that 
the

[[Page 9657]]

Postal Service may make for a class pursuant to a notice of Type 1-A or 
Type 1-B rate adjustment. The maximum rate adjustment is calculated in 
accordance with Sec.  3030.520.
* * * * *
    (h) Type 1-A rate adjustment means a rate adjustment described in 
Sec.  3030.504.
    (i) Type 1-B rate adjustment means a rate adjustment described in 
Sec.  3030.505.
    (j) Type 1-C rate adjustment means a rate adjustment described in 
Sec.  3030.506.
    (k) Type 2 rate adjustment means a rate adjustment described in 
Sec.  3030.507.
    (l) Type 3 rate adjustment means a rate adjustment described in 
Sec.  3030.508.
    (m) * * *
    (1) In the case of a Type 1-A or Type 1-B rate adjustment, the 
percentage calculated pursuant to Sec.  3030.526; and
    (2) In the case of a Type 1-C rate adjustment, the percentage 
calculated pursuant to Sec.  3030.527.

0
 99. Amend newly redesignated Sec.  3030.504 by revising paragraph (c) 
to read as follows:


Sec.  3030.504   Type 1-A rate adjustment--in general.

* * * * *
    (c) A Type 1-A rate adjustment for any class that is less than the 
applicable annual limitation results in unused rate adjustment 
authority associated with that class. Part or all of the unused rate 
adjustment authority may be used in a subsequent rate adjustment for 
that class, subject to the expiration terms in Sec.  3030.526(e).

0
 100. Amend newly redesignated Sec.  3030.506 by revising paragraph 
(b)(1) to read as follows:


Sec.  3030.506   Type 1-C rate adjustment--in general.

* * * * *
    (b)(1) Except as provided in paragraph (b)(2) of this section, a 
Type 1-C rate adjustment may generate unused rate adjustment authority, 
as described in Sec.  3030.527.
* * * * *

0
 101. Amend newly redesignated Sec.  3030.511 by revising paragraphs 
(b)(1) and (2), (d), and (k) to read as follows:


Sec.  3030.511   Proceedings for Type 1-A, Type 1-B, and Type 1-C rate 
adjustment filings.

* * * * *
    (b) * * *
    (1) Whether the planned rate adjustments measured using the formula 
established in Sec.  3030.523(c) are at or below the annual limitation 
calculated under Sec.  3030.521 or Sec.  3030.522, as applicable; and
    (2) Whether the planned rate adjustments measured using the formula 
established in Sec.  3030.523(c) are at or below the limitation 
established in Sec.  3030.529.
* * * * *
    (d) Within 14 days of the conclusion of the public comment period 
the Commission will determine, at a minimum, whether the planned rate 
adjustments are consistent with the annual limitation calculated under 
Sec.  3030.521 or Sec.  3030.522, as applicable, the limitation set 
forth in Sec.  3030.529, and 39 U.S.C. 3626, 3627, and 3629 and issue 
an order announcing its findings.
* * * * *
    (k) A Commission finding that a planned Type 1-A, Type 1-B, or Type 
1-C rate adjustment is in compliance with the annual limitation 
calculated under Sec.  3030.521 or Sec.  3030.522, as applicable; the 
limitation set forth in Sec.  3030.529; and 39 U.S.C. 3626, 3627, and 
3629 is decided on the merits. A Commission finding that a planned Type 
1-A, Type 1-B, or Type 1-C rate adjustment does not contravene other 
policies of 39 U.S.C. chapter 36, subchapter I is provisional and 
subject to subsequent review.

0
 102. Amend newly redesignated Sec.  3030.512 by revising paragraphs 
(b)(1), (3), and (4), (b)(9)(ii), and (e) to read as follows:


Sec.  3030.512   Contents of notice of rate adjustment.

* * * * *
    (b) * * *
    (1) The annual limitation calculated as required by Sec.  3030.521 
or Sec.  3030.522, as appropriate. This information must be supported 
by workpapers in which all calculations are shown and all input values, 
including all relevant CPI-U values, are listed with citations to the 
original sources.
* * * * *
    (3) The percentage change in rates for each class of mail 
calculated as required by Sec.  3030.523. This information must be 
supported by workpapers in which all calculations are shown and all 
input values, including current rates, new rates, and billing 
determinants, are listed with citations to the original sources.
    (4) The amount of new unused rate adjustment authority, if any, 
that will be generated by the rate adjustment calculated as required by 
Sec.  3030.526 or Sec.  3030.527, as applicable. All calculations are 
to be shown with citations to the original sources. If new unused rate 
adjustment authority will be generated for a class of mail that is not 
expected to cover its attributable costs, the Postal Service must 
provide the rationale underlying this rate adjustment.
* * * * *
    (9) * * *
    (ii) Whether the Postal Service has excluded the rate incentive 
from the calculation of the percentage change in rates under Sec.  
3030.523(e) or Sec.  3030.524.
* * * * *
    (e) The notice of rate adjustment shall identify for each affected 
class how much existing unused rate adjustment authority is used in the 
planned rates calculated as required by Sec.  3030.528. All 
calculations are to be shown, including citations to the original 
sources.
* * * * *

0
 103. Amend newly redesignated Sec.  3030.520 by revising paragraphs 
(b) and (d)(2) to read as follows:


Sec.  3030.520   Calculation of maximum rate adjustment.

* * * * *
    (b) Type 1-A and Type 1-B rate adjustments are subject to an 
inflation-based annual limitation computed using CPI-U values as 
detailed in Sec. Sec.  3030.521(a) and 3030.522(a).
* * * * *
    (d) * * *
    (2) For a Type 1-B notice of rate adjustment, the annual limitation 
for the class plus the unused rate adjustment authority for the class 
that the Postal Service elects to use, subject to the limitation under 
Sec.  3030.529.
* * * * *

0
 104. Amend newly redesignated Sec.  3030.523 by revising paragraph 
(e)(1) to read as follows:


Sec.  3030.523   Calculation of percentage change in rates.

* * * * *
    (e) * * *
    (1) Rate incentives may be excluded from a percentage change in 
rates calculation. If the Postal Service elects to exclude a rate 
incentive from a percentage change in rates calculation, the rate 
incentive shall be treated in the same manner as a rate under a 
negotiated service agreement (as described in Sec.  3030.524).
* * * * *

0
 105. Amend newly redesignated Sec.  3030.524 by revising paragraph (a) 
to read as follows:


Sec.  3030.524   Treatment of volume associated with negotiated service 
agreements and rate incentives that are not rates of general 
applicability.

    (a) Mail volumes sent at rates under a negotiated service agreement 
or a rate incentive that is not a rate of general applicability are to 
be included in the

[[Page 9658]]

calculation of percentage change in rates under Sec.  3030.523 as 
though they paid the appropriate rates of general applicability. Where 
it is impractical to identify the rates of general applicability (e.g., 
because unique rate categories are created for a mailer), the volumes 
associated with the mail sent under the terms of the negotiated service 
agreement or the rate incentive that is not a rate of general 
applicability shall be excluded from the calculation of percentage 
change in rates.
* * * * *

0
 106. Revise newly redesignated Sec.  3030.525 to read as follows:


Sec.  3030.525   Limitation on application of unused rate adjustment 
authority.

    Unused rate adjustment authority may only be applied after applying 
the annual limitation calculated pursuant to Sec.  3030.521 or Sec.  
3030.522.

0
 107. Amend newly redesignated Sec.  3030.526 by revising paragraphs 
(b) and (c)(2) to read as follows:


Sec.  3030.526   Calculation of unused rate adjustment authority for 
Type 1-A and Type 1-B rate adjustments.

* * * * *
    (b) When notices of Type 1-A or Type 1-B rate adjustments are filed 
12 months apart or less, annual unused rate adjustment authority will 
be calculated. Annual unused rate adjustment authority for a class is 
equal to the difference between the annual limitation calculated 
pursuant to Sec.  3030.521 or Sec.  3030.522 and the percentage change 
in rates for the class calculated pursuant to Sec.  3030.523(b)(1).
    (c) * * *
    (2) Interim unused rate adjustment authority is equal to the Base 
Average applicable to the second notice of rate adjustment (as 
developed pursuant to Sec.  3030.521(b)) divided by the Recent Average 
utilized in the first notice of rate adjustment (as developed pursuant 
to Sec.  3030.521(b)) and subtracting 1 from the quotient. The result 
is expressed as a percentage.
* * * * *

0
 108. Amend newly redesignated Sec.  3030.527 by revising paragraphs 
(a), (c), and (d) to read as follows:


Sec.  3030.527   Calculation of unused rate adjustment authority for 
Type 1-C rate adjustments.

    (a) For a notice of Type 1-C rate adjustment, unused rate 
adjustment authority for a class is calculated in two steps. First, the 
difference between the annual limitation calculated pursuant to Sec.  
3030.521 or Sec.  3030.522 for the most recent notice of Type 1-A or 
Type 1-B rate adjustment and the percentage change in rates for the 
class calculated pursuant to Sec.  3030.523(b)(2) is calculated. 
Second, the unused rate adjustment authority generated in the most 
recent Type 1-A or Type 1-B rate adjustment is subtracted from that 
result.
* * * * *
    (c) Unused rate adjustment authority generated under paragraph (a) 
of this section for a class shall be added to the unused rate 
adjustment authority generated in the most recent notice of Type 1-A 
rate adjustment on the schedule maintained under Sec.  3030.526(f). For 
purposes of Sec.  3030.528, the unused rate adjustment authority 
generated under paragraph (a) of this section for a class shall be 
deemed to have been added to the schedule maintained under Sec.  
3030.526(f) on the same date as the most recent notice of Type 1-A or 
Type 1-B rate adjustment.
    (d) Unused rate adjustment authority generated under paragraph (a) 
of this section shall be subject to the limitation under Sec.  
3030.529, regardless of whether it is used alone or in combination with 
other existing unused rate adjustment authority.

0
 109. Amend newly redesignated Sec.  3030.530 by revising paragraph (b) 
to read as follows:


Sec.  3030.530   De minimis rate increases.

* * * * *
    (b) No unused rate adjustment authority will be added to the 
schedule of unused rate adjustment authority maintained under Sec.  
3030.526(f) as a result of a de minimis rate increase.
* * * * *

0
 110. Revise newly redesignated Sec.  3030.562 to read as follows:


Sec.  3030.562   Supplemental information.

    The Commission may require the Postal Service to provide 
clarification of its request or to provide information in addition to 
that called for by Sec.  3030.561 in order to gain a better 
understanding of the circumstances leading to the request or the 
justification for the specific rate adjustments requested.

0
 111. Amend newly redesignated Sec.  3030.563 by revising paragraph (b) 
to read as follows:


Sec.  3030.563   Treatment of unused rate adjustment authority.

* * * * *
    (b) Pursuant to an exigent request, rate adjustments may use 
existing unused rate adjustment authority in amounts greater than the 
limitation described in Sec.  3030.528 of this subpart.
* * * * *

0
 112. Amend newly redesignated Sec.  3030.565 by revising paragraphs 
(b) and (c) to read as follows:


Sec.  3030.565   Special procedures applicable to exigent requests.

* * * * *
    (b) The Commission will hold a public hearing on the Postal Service 
request. During the public hearing, responsible Postal Service 
officials will appear and respond under oath to questions from the 
Commissioners or their designees addressing previously identified 
aspects of the Postal Service's request and the supporting information 
provided in response to the topics specified in Sec.  3010.561 of this 
chapter.
    (c) Interested persons will be given an opportunity to submit to 
the Commission suggested relevant questions that might be posed during 
the public hearing. Such questions, and any explanatory materials 
submitted to clarify the purpose of the questions, should be filed in 
accordance with part 3010, subpart B, of this chapter and will become 
part of the administrative record of the proceeding.
* * * * *

PART 3040--PRODUCT LISTS AND THE MAIL CLASSIFICATION SCHEDULE

0
 113. The authority for newly redesignated part 3040 continues to read 
as follows:

    Authority:  39 U.S.C. 503; 3622; 3631; 3642; 3682.


0
 114. Revise the heading to part 3040 to read as set forth above.

0
 115. Revise newly redesignated Sec.  3040.102 to read as follows:


Sec.  3040.102   Product lists.

    (a) Market dominant product list. The market dominant product list 
shall be published in the Federal Register at appendix A to subpart A 
of part 3040--Market Dominant Product List.
    (b) Competitive product list. The competitive product list shall be 
published in the Federal Register at appendix B to subpart A of part 
3040--Competitive Product List.

0
 116. Amend newly redesignated Sec.  3040.181 by revising paragraph (b) 
to read as follows:


Sec.  3040.181   Supporting justification for material changes to 
product descriptions.

* * * * *
    (b)(1) As to market dominant products, explain why the changes are 
not inconsistent with each requirement of 39 U.S.C. 3622(d) and part 
3030 of this chapter; or

[[Page 9659]]

    (2) As to competitive products, explain why the changes will not 
result in the violation of any of the standards of 39 U.S.C. 3633 and 
part 3035 of this chapter.
* * * * *

0
 117. Amend newly redesignated Sec.  3040.190 by revising paragraph 
(c)(1) to read as follows:


Sec.  3040.190   Minor corrections to product descriptions.

* * * * *
    (c) * * *
    (1) Explain why the proposed corrections do not constitute material 
changes to the product description for purposes of Sec.  3040.180;
* * * * *

PART 3045--RULES FOR MARKET TESTS OF EXPERIMENTAL PRODUCTS

0
 118. The authority for newly redesignated part 3045 continues to read 
as follows:

    Authority:  39 U.S.C. 3641.


0
 119. Amend newly redesignated Sec.  3045.3 by revising paragraphs 
(a)(1)(ii) and (a)(2)(vi) and adding reserved paragraph (b) to read as 
follows:


Sec.  3045.3   Contents of notice.

    (a) * * *
    (1) * * *
    (ii) Establish that the introduction or continued offering of the 
experimental product will not create an unfair or otherwise 
inappropriate competitive advantage for the Postal Service or any 
mailer, particularly in regard to small business concerns, as defined 
in Sec.  3010.101(t) of this chapter; and
* * * * *
    (2) * * *
    (vi) Includes a data collection plan for the market test, including 
a description of the specific data items to be collected. The minimum 
data collection plan requirements are described in Sec.  3045.20.
    (b) [Reserved]

0
 120. Revise newly redesignated Sec.  3045.10 to read as follows:


Sec.  3045.10   Duration.

    A market test may not exceed 24 months in duration unless the 
Commission authorizes an extension pursuant to a request filed by the 
Postal Service under Sec.  3045.11.

0
 121. Amend newly redesignated Sec.  3045.15 by revising paragraphs (a) 
and (b) to read as follows:


Sec.  3045.15   Dollar amount limitation.

    (a) The Consumer Price Index used for calculations under this part 
is the CPI-U index, as specified in Sec. Sec.  3030.521(a) and 
3030.522(a) of this chapter.
    (b) An experimental product may only be tested if total revenues 
that are anticipated or received by the Postal Service do not exceed 
$10 Million in any fiscal year, as adjusted for the change in the CPI-U 
index, as specified in paragraph (d) of this section ($10 Million 
Adjusted Limitation). Total revenues anticipated or received may exceed 
the $10 Million Adjusted Limitation in any fiscal year if an exemption 
is granted pursuant to Sec.  3045.16.
* * * * *

0
 122. Amend newly redesignated Sec.  3045.16 by revising paragraph 
(f)(3) to read as follows:


Sec.  3045.16   Exemption from dollar amount limitation.

* * * * *
    (f) * * *
    (3) Estimate the additional revenue that is anticipated by the 
Postal Service for each fiscal year remaining on the market test, 
including any extension period granted by the Commission in accordance 
with Sec.  3045.11(c), and provide available supporting documentation; 
and
* * * * *

0
 123. Revise newly redesignated Sec.  3045.17 to read as follows:


Sec.  3045.17   Prevention of market disruption.

    Notwithstanding the $10 Million Adjusted Limitation or any 
adjustment granted pursuant to Sec.  3045.16, the Commission may limit 
the amount of revenues the Postal Service may obtain from any 
particular geographic market as necessary to prevent the creation of an 
unfair or otherwise inappropriate competitive advantage for the Postal 
Service or any mailer, particularly in regard to small business 
concerns, as defined in Sec.  3010.101(t) of this chapter.

0
 124. Amend newly redesignated Sec.  3045.18 by revising paragraphs 
(a), (d)(1)(i)(B), and (d)(2)(i)(B) to read as follows:


Sec.  3045.18   Request to add a non-experimental product or price 
category based on an experimental product to the product list.

    (a) If the Postal Service seeks to add a non-experimental product 
or price category based on a former or current experimental product to 
the market dominant or competitive product list, the Postal Service 
shall file a request, pursuant to 39 U.S.C. 3642 and part 3040, subpart 
B of this chapter, to add a non-experimental product or price category 
to the applicable product list.
* * * * *
    (d) * * *
    (1)(i) * * *
    (B) The market test is expected to exceed any authorized limitation 
specified in Sec. Sec.  3045.15 and 3045.16 during any fiscal year, 
whichever is earlier.
    * * *
    (2)(i) * * *
    (B) The market test is expected to exceed any authorized limitation 
specified in Sec. Sec.  3035.15 and 3035.16 Sec. Sec.  3045.15 and 
3045.16 during any fiscal year, whichever is earlier.
* * * * *

0
 125. Amend newly redesignated Sec.  3045.20 by revising paragraph (a) 
introductory text to read as follows:


Sec.  3045.20   Data collection and reporting requirements.

    (a) A notice of a market test shall include a data collection plan 
for the market test as required by Sec.  3045.3(a)(2)(vi). Data 
collection plans shall include, at a minimum:

PART 3055--SERVICE PERFORMANCE AND CUSTOMER SATISFACTION REPORTING

0
 126. The authority for part 3055 continues to read as follows:

    Authority:  39 U.S.C. 503, 3622(a), 3652(d) and (e); 3657(c).


0
127. Revise 3055.1 to read as follows:


Sec.  3055.1   Annual reporting of service performance achievements.

    For each market dominant product specified in the Mail 
Classification Schedule in part 3040, appendix A to subpart A of part 
3040 of this chapter, the Postal Service shall file a report as part of 
the section 3652 report addressing service performance achievements for 
the preceding fiscal year.

0
128. Revise Sec.  3055.30 to read as follows:


Sec.  3055.30   Periodic reporting of service performance achievements.

    For each market dominant product specified in the Mail 
Classification Schedule in part 3040, appendix A to subpart A of part 
3040 of this chapter, the Postal Service shall file a Quarterly Report 
with the Commission addressing service performance achievements for the 
preceding fiscal quarter (within 40 days of the close of each fiscal 
quarter).

0
129. Revise Sec.  3055.90 to read as follows:


Sec.  3055.90   Reporting of customer satisfaction.

    For each market dominant product specified in the Mail 
Classification

[[Page 9660]]

Schedule in part 3040, appendix A to subpart A of part 3040 of this 
chapter, the Postal Service shall file a report as part of the section 
3652 report, unless a more frequent filing is specifically indicated, 
addressing customer satisfaction achievements for the preceding fiscal 
year. The report shall include, at a minimum, the specific reporting 
requirements presented in Sec. Sec.  3055.91 through 3055.92.

PART 3060--ACCOUNTING PRACTICES AND TAX RULES FOR THE THEORETICAL 
COMPETITIVE PRODUCTS ENTERPRISE

0
 130. The authority for part 3060 continues to read as follows:

    Authority:  39 U.S.C. 503, 2011, 3633, 3634.


0
131. Revise Sec.  3060.21 to read as follows:


Sec.  3060.21   Income report.

    The Postal Service shall file an Income Report in the form and 
content of table 1 to Sec.  3060.21.

                Table 1 to Sec.   3060.21--Competitive Products Income Statement--PRC Form CP-01
                                                   [$ in 000s]
----------------------------------------------------------------------------------------------------------------
                                                                                                      Percent
                                                      FY 20xx        FY 20xx-1     Change  from    change  from
                                                                                       SPLY            SPLY
----------------------------------------------------------------------------------------------------------------
Revenue:                                                  $x,xxx          $x,xxx            $xxx            xx.x
    (1) Mail and Services Revenues..............             xxx             xxx              xx            xx.x
    (2) Investment Income.......................            x,xx           x,xxx             xxx            xx.x
    (3) Total Competitive Products Revenue......  ..............  ..............  ..............  ..............
Expenses:                                                  x,xxx  ..............  ..............  ..............
    (4) Volume-Variable Costs...................           x,xxx           x,xxx             xxx            xx.x
    (5) Product Specific Costs..................           x,xxx           x,xxx             xxx            xx.x
    (6) Incremental Inframarginal Costs.........           x,xxx           x,xxx             xxx            xx.x
    (7) Total Competitive Products Attributable            x,xxx           x,xxx             xxx            xx.x
     Costs......................................
    (8) Net Contribution Competitive Products              x,xxx           x,xxx             xxx            xx.x
     Market Tests...............................
    (9) Net Income Before Institutional Cost               x,xxx           x,xxx             xxx  ..............
     Contribution...............................
    (10) Required Institutional Cost                       x,xxx           x,xxx             xxx           x.x.x
     Contribution...............................
    (11) Net Income (Loss) Before Tax...........           x,xxx           x,xxx             xxx            xx.x
    (12) Assumed Federal Income Tax.............           x,xxx           x,xxx             xxx            xx.x
    (13) Net Income (Loss) After Tax............           x,xxx           x,xxx             xxx            xx.x
----------------------------------------------------------------------------------------------------------------
Line (1): Total revenues from Competitive Products volumes and Ancillary Services.
Line (2): Income provided from investment of surplus Competitive Products revenues.
Line (3): Sum total of revenues from Competitive Products volumes, services, and investments.
Line (4): Total Competitive Products volume-variable costs as shown in the Cost and Revenue Analysis (CRA)
 report.
Line (5): Total Competitive Products product-specific costs as shown in the CRA report.
Line (6): Inframarginal costs calculated as part of total Competitive Products incremental costs as shown in ACR
 Library Reference ``Competitive Product Incremental and Group Specific Costs'' (Currently NP10).
Line (7): Sum total of Competitive Products costs (sum of lines 4, 5, and 6).
Line (8): Net Contribution Competitive Products Market Tests as shown in the Annual Compliance Report.
Line (9): Difference between Competitive Products total revenues and attributable costs and Market Tests
 Contributions (line 3 less line 7 plus line 8).
Line (10): Minimum amount of Institutional cost contribution required under 39 CFR 3035.7 of this chapter.
Line (11): Line 9 less line 10.
Line (12): Total assumed Federal income tax as calculated under 39 CFR 3060.40..................................
Line (13): Line 11 less line 12.
----------------------------------------------------------------------------------------------------------------

CHAPTER III--[AMENDED]



0
132. In chapter III of title 39, revise all references to ``Web site'' 
to read ``website.''

    By the Commission.

Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2020-01055 Filed 2-18-20; 8:45 am]
 BILLING CODE 7710-FW-P