[Federal Register Volume 86, Number 154 (Friday, August 13, 2021)]
[Proposed Rules]
[Pages 44676-44677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17191]



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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2021-8; Order No. 5951]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is acknowledging a recent filing requesting the 
Commission initiate a rulemaking proceeding to consider changes to 
analytical principles relating to periodic reports (Proposal Five). 
This document informs the public of the filing, invites public comment, 
and takes other administrative steps.

DATES: Comments are due: September 15, 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. Proposal Five
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On August 4, 2021, the Postal Service filed a petition pursuant to 
39 CFR 3050.11, requesting that the Commission initiate a rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports.\1\ The Petition identifies the proposed analytical 
changes filed in this docket as Proposal Five.
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    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Five), August 4, 2021 (Petition). 
The Postal Service filed two non-public Attachments under seal with 
Proposal Five as part of Library Reference USPS-RM2021-8/NP1. The 
information is of the type provided under seal within Docket No. 
ACR2020, Library Reference USPS-FY20-NP2 and -NP5 in the Postal 
Service's FY2020 Annual Compliance Report. The Postal Service 
therefore incorporates by reference the Application for Non-Public 
Treatment of Materials contained in Attachment Two to the United 
States Postal Service Fiscal Year 2020 Annual Compliance Report, 
filed on December 29, 2020. Library Reference USPS-RM2021-8/NP1, 
August 4, 2021; Notice of Filing of USPS-RM2021-8/NP1 and 
Application for Nonpublic Treatment, August 4, 2021.
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II. Proposal Five

    Proposal. The Postal Service proposes to treat International 
surface transportation to Canada separately from the treatment of 
International air transportation. Petition, Proposal Five at 1. The 
Postal Service explains that the proposal uses additional Foreign 
Postal Settlement System (FPS) data to develop a distribution key to 
more accurately distribute outbound International surface 
transportation expenses to Canada (Account 53281). Id. After isolating 
International surface transportation to Canada for separate treatment, 
the proposal continues to use the International Air Transportation file 
to distribute outbound International air transportation expenses 
(Accounts 53201 and 53212), with a refinement to remap surface parcels 
to regular parcels in the distribution. Id. Account 53281 expenses 
would be isolated from the other expenses and additional FPS data would 
be used to distribute account 53281 expenses to international mail 
categories transported to Canada by surface. Id.
    Rationale. Following information requests during the recent Annual 
Compliance Report process, the Postal Service reviewed its 
international transportation costs. Id. at 2. The Postal Service 
indicates that removing account 53281 from the current treatment that 
sums accounts 53201, 53212, and 53281 results in the distribution of 
only air expenses. The Postal Service concludes that with new surface 
and air treatments for accounts 53201, 53212, and 53281, and account 
53286 continuing to receive its separate treatment as part of the FedEx 
agreement, there is no longer a need for diversion factors. Id.
    The Postal Service notes that the International Cost and Revenue 
Analysis (ICRA) has traditionally described the method for calculating 
outbound international transportation expenses. Id. The Postal Service 
states that the proposal mostly maintains the methodology described in 
the Air Transportation Cost Computations, but would remove account 
53281 from the benchmarking of International air transportation 
expenses for all countries. Id. at 3.
    The Postal Service states that the primary subject of this proposal 
is the International highway costs section. Id. Currently, the 
proportions of total outbound kilograms to Canada are used to develop 
diversion ratios for mail types transported by surface. Id. at 4. The 
proposal would use U.S. and Canada information service center origin 
destination pairs by ICRA outbound mail class to replace the diversion 
percentages. Id.
    The Postal Services notes that additional FPS data is used to 
distribute expenses for outbound surface transportation to Canada. It 
concludes that ``refining the treatment of air transportation costs 
would improve ICRA reporting by providing a finer level of mail 
category detail that: (1) Eliminates treating the sum of air and 
surface costs together, (2) eliminates the need to develop air to 
surface diversion factors to isolate or divert Canada surface 
transportation expenses, and (3) provides the basis for the 
distribution of surface costs using surface data and the distribution 
of air costs using air data.'' Id. at 4-5.
    Impact. The Postal Service claims that the two non-public 
attachments accompanying the proposal show its ``modest impact,'' and 
indicates that both are filed under seal as part of Library Reference 
USPS-RM2021-8/NP1. Id. at 5. It concludes that the net impact on total 
Market Dominant and total Competitive products costs is zero. Id. 
Additional pages display the detailed impacts on Market Dominant 
products and Competitive products. The Postal Service concludes that, 
overall, the proposal would shift roughly $158,000 of attributable 
costs from Market Dominant to Competitive products. Id.
    The Postal Service also indicates that the change in Total Volume 
Variable and Product Specific Cost in Attachment 2 reflect the 
International Negotiated Service Agreement (NSA) differences in 
Attachment 1. It concludes these show that all NSAs that were 
compensatory in FY 2020 would have remained so under this proposal. Id.
    Mechanics. The Postal Service details several of the adjustments 
that would be made to various files by the proposal. Id. at 6.

III. Notice and Comment

    The Commission establishes Docket No. RM2021-8 for consideration of 
matters raised by the Petition. More information on the Petition may be 
accessed via the Commission's website at http://www.prc.gov. Interested 
persons may submit comments on the Petition and Proposal Five no later 
than September 15, 2021. Pursuant to 39 U.S.C. 505, Jennaca D. Upperman 
is designated as an officer of the Commission (Public Representative) 
to represent the interests of the general public in this proceeding.

IV. Ordering Paragraphs

    It is ordered:

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    1. The Commission establishes Docket No. RM2021-8 for consideration 
of the matters raised by the Petition of the United States Postal 
Service for the Initiation of a Proceeding to Consider Proposed Changes 
in Analytical Principles (Proposal Five), filed August 4, 2021.
    2. Comments by interested persons in this proceeding are due no 
later than September 15, 2021.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Jennaca D. 
Upperman 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.
Erica A. Barker,
Secretary.
[FR Doc. 2021-17191 Filed 8-12-21; 8:45 am]
BILLING CODE 7710-FW-P