[Federal Register Volume 86, Number 62 (Friday, April 2, 2021)]
[Proposed Rules]
[Pages 17347-17348]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06839]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3030

[Docket No. RM2021-5; Order No. 5854]


Application for Waiver of Workshare Discount

AGENCY: Postal Regulatory Commission.

ACTION: Application for waiver; comment request.

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SUMMARY: The Commission is recognizing a Postal Service application for 
waiver pursuant to Commission regulations as it relates to a workshare 
discount. This notice informs the public of the filing, invites public 
comment, and takes other administrative steps.

DATES: Comments are due: April 6, 2021.

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

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

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Background
III. Application for Waiver
IV. Notice and Comment
V. Ordering Paragraphs

I. Introduction

    On March 26, 2021, the Postal Service filed an application for 
waiver pursuant to 39 CFR 3030.286 requesting that the Commission waive 
the applicability of 39 CFR 3030.284 as it relates to the First-Class 
Mail Letters 5-Digit Automation workshare discount in the next rate 
adjustment filing.\1\
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    \1\ United States Postal Service Application for Waiver Under 39 
CFR 3030.286, March 26, 2021 (Application). The Postal Service's 
Application is accompanied by a Statement in Support of Waiver 
Application (Supporting Statement).
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II. Background

    Pursuant to 39 CFR 3030.284, a workshare discount proposed by the 
Postal Service in any rate adjustment filing that is below avoided 
costs must either be associated with a new postal service, a change to 
an existing postal service, or a new workshare initiative; be at least 
a 20 percent increase from the existing workshare discount, or have a 
passthrough of at least 85 percent.\2\ See 39 CFR 3030.284.
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    \2\ The relationship between workshare discounts and avoided 
costs is usually expressed as a percentage called a passthrough, 
which is calculated by dividing the discount by the avoided cost. 
Workshare discounts with passthroughs below 100 percent are 
considered below avoided cost workshare discounts.
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    If the proposed workshare discount does not comply with the 
limitations of 39 CFR 3030.284, the Postal Service must file an 
application for waiver pursuant to 39 CFR 3030.286. See 39 CFR 
3030.284(d); 39 CFR 3030.286. The Postal Service's waiver application 
must be supported by a preponderance of the evidence and demonstrate 
that a waiver from the limitations imposed by 39 CFR 3030.284 should be 
granted. See 39 CFR 3030.286(b). The Postal Service must include the 
grounds for a waiver, including all relevant supporting analysis; the 
length of time the waiver will be necessary; for each subsequent rate 
adjustment filing planned to occur during the length of time for which 
a waiver is sought, a representation of the proposed minimum amount of 
the change to the workshare discount; and any other relevant 
information. See also 39 CFR 3030.286(c)(1) through (3) and (8). 
Grounds for waiver for a below avoided cost workshare discount and the 
required accompanying information are set forth in 39 CFR 
3030.286(c)(5) and (7).\3\
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    \3\ Grounds for waiver for a below avoided cost workshare 
discount relate to the impediment of efficient postal operations and 
non-compensatory products. See 39 CFR 3030.286(c)(5) and (7).
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III. Application for Waiver

    The Postal Service requests a waiver of 39 CFR 3030.284 for First-
Class Mail that is sorted to the 5-Digit level for any rate adjustment 
proceeding occurring in Fiscal Year (FY) 2021. Application, Supporting 
Statement at 1. The Postal Service states that ``increasing the 
workshare discount for 5-Digit presort First-Class Mail by 0.5 cents in 
a single year could decrease the efficiency of its processing 
operations.'' Id.; see 39 CFR 3030.286(c)(5). It notes that the current 
discount of 3.0 cents results in a passthrough of 73 percent, which is 
below the 85 percent threshold. Id. To be in compliance with 39 CFR 
3030.284, the Postal Service states that it would be required to 
increase the discount by 0.5 cents to 3.5 cents absent a waiver. Id. at 
1-2. It maintains that ``[s]uch an increase (which would be nearly 17 
[percent] higher than the same discount in FY 2020) represents a 
dramatic change following years of relative pricing stability.'' Id. at 
2. The Postal Service states that the required change ``could lead to 
unpredictable changes among the relative proportions of mail volumes 
sorted to 5-Digit, Auto AADC, and Mixed AADC.'' Id.
    For these reasons, the Postal Service seeks to maintain the 5-Digit 
First-Class Mail Automation workshare discount at 3.0 cents for the 
next rate adjustment filing. Id.

IV. Notice and Comment

    The Commission establishes Docket No. RM2021-5 for consideration of 
matters raised by the Application. More information on the Application 
may be accessed via the Commission's website at http://www.prc.gov. 
Interested persons may submit comments on the Application no later than 
April 6, 2021.

[[Page 17348]]

Pursuant to 39 U.S.C. 505, Katalin K. Clendenin is designated as an 
officer of the Commission (Public Representative) to represent the 
interests of the general public in this proceeding.

V. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2021-5 for consideration 
of the matters raised by the United States Postal Service Application 
for Waiver Under 39 CFR 3030.286, filed March 26, 2021.
    2. Comments by interested persons in this proceeding are due no 
later than April 6, 2021.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Katalin K. 
Clendenin to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Jennie L. Jbara,
Alternate Certifying Official.
[FR Doc. 2021-06839 Filed 4-1-21; 8:45 am]
BILLING CODE 7710-FW-P