[Federal Register Volume 89, Number 169 (Friday, August 30, 2024)]
[Notices]
[Pages 70673-70674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19551]


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POSTAL REGULATORY COMMISSION

[Docket No. N2024-1; Order No. 7414]


Service Standard Changes

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is acknowledging a filing by the Postal Service 
of its intent to conduct a pre-filing conference regarding proposed 
changes to its processing and transportation networks and revisions to 
its service standards to align with these changes. This document 
informs the public of this proceeding and the pre-filing conference, 
and takes other administrative steps.

DATES: Pre-filing conference: September 5, 2024, 1 p.m. to 3 p.m., 
eastern daylight time--Virtual Online.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at https://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: Pursuant to 39 CFR 3020.111(d), on August 
22, 2024, the Postal Service filed a notice of its intent to conduct a 
pre-filing conference on September 5, 2024, regarding proposed changes 
to its processing and transportation networks and revisions to its 
service standards to align with these changes.\1\
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    \1\ Notice of Pre-Filing Conference, August 22, 2024, at 1 
(Notice).
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    As part of its Delivering for America strategic plan, the Postal 
Service intends to implement certain initiatives to ``to achieve 
greater operational precision and efficiency, significantly reduce 
costs, and enhance service.'' \2\ Specifically, the Postal Service 
intends to create a network of regional processing and distribution 
centers or campuses (RPDCs) and local processing centers (LPCs). Notice 
at 3. It also intends to implement a Regional Transportation 
Optimization (RTO) initiative to transform its transportation network. 
Id. The RTO initiative is an evolution of the Local Transportation 
Optimization (LTO) initiative that the Postal Service asserts had been 
piloted in certain geographic areas. Id. The Postal Service estimates 
that these initiatives will result in costs savings between $2.8 
billion to $3.3 billion per year once fully implemented. Id. at 4.
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    \2\ Notice at 3; see also United States Postal Service, 
Delivering for America: Our Vision and Ten-Year Plan to Achieve 
Financial Sustainability and Service Excellence, March 23, 2021, 
available at https://about.usps.com/what/strategic-plans/delivering-for-america/assets/USPS_Delivering-For-America.pdf.
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    To align with these initiatives, the Postal Service proposes to 
change its service standards for end-to-end Market Dominant and 
Competitive products. Id. The Postal Service states that it will 
transition from plant-to-plant (i.e., 3-Digit to 3-Digit ZIP Code) to 
Post Office to Post Office (i.e., 5-Digit to 5-Digit ZIP Code) service 
standards that ``maintain the existing delivery day ranges for both 
First-Class Mail and USPS Ground Advantage while accurately and 
logically reflecting the three operational legs applicable to the 
movement of mail and packages: collection to origin processing (Leg 1), 
origin processing to destination processing (Leg 2), and destination 
processing to delivery (Leg 3).'' Id. The Postal Service also plans to 
revise the service standards for end-to-end USPS Marketing Mail and 
Package Services so that they are based on the standards for First-
Class Mail and USPS Ground Advantage. Id. at 4-5. In addition, the 
Postal Service plans to exclude Sundays and holidays as transit days 
for mail and packages entered on a Saturday or the day before a 
holiday. Id. at 5.
    The Postal Service states that ``these revisions will create 
standards that are more operationally precise and specific for 
customers, enable the Postal Service to maintain or upgrade the service 
standards for a majority of volume, and enhance the Postal Service's 
ability to reliably achieve [its] standards.'' Id. at 4. The Postal 
Service claims that most volume will retain the same service standard 
or see service standard improvements, but some mail and packages will 
experience a longer service standard. Id. at 5. Although it may 
implement discrete aspects of these initiatives due to pilot testing, 
the Postal Service states that the proposed service standard changes 
will not be implemented until the next calendar year and will not 
impact Election Mail or Peak Season 2024. Id. at 6-7.
    The pre-filing conference regarding the proposed changes will be 
held virtually on September 5, 2024, from 1 p.m. to 3 p.m. eastern 
daylight time (EDT). Id. at 1, 7. At this conference, Postal Service 
representatives capable of discussing the Postal Service's proposal 
will be available to educate the public and to allow interested persons 
to provide feedback to the Postal Service. Id. Registration 
instructions are available at https://about.usps.com/what/strategic-plans/delivering-for-america/details.htm. Id. at 7. Unless all 
available spaces are taken sooner, registration is open until September 
3, 2024, at 12 p.m. EDT. Id.
    The Commission establishes Docket No. N2024-1 to consider the 
Postal Service's proposed initiatives and accompanying revisions to its 
service standards. The Postal Service must file its formal request for 
an advisory opinion with the Commission at least 90 days before 
implementing any of the proposed changes. 39 CFR 3020.112. This formal 
request must certify that the Postal Service has made good faith 
efforts to address the concerns raised at the pre-filing conference and 
meet other content requirements. 39 CFR 3020.113. After the Postal 
Service files the formal request for an advisory opinion, the 
Commission will set forth a procedural schedule and provide additional 
information in a notice and order that will be published in the Federal 
Register. 39 CFR 3020.110. Before issuing its advisory opinion, the 
Commission must provide an opportunity for a formal, on-the-record 
hearing pursuant to 5 U.S.C. 556 and 557. 39 U.S.C. 3661(c). The 
procedural rules in 39 CFR part 3020 apply to Docket No. N2024-1.
    Pursuant to 39 U.S.C. 3661(c) and 39 CFR 3020.111(d), the 
Commission appoints Ping Gong to represent the interests of the general 
public (Public Representative) in this proceeding. Pursuant to 39 CFR 
3020.111(d), the Secretary shall arrange for publication of this order 
in the Federal Register.

[[Page 70674]]

    It is ordered:
    1. The Commission establishes Docket No. N2024-1 to consider the 
Postal Service's proposed changes to the service standards for end-to-
end Market Dominant and Competitive products to align with certain 
operational initiatives.
    2. The Postal Service shall conduct a virtual pre-filing conference 
regarding its proposal on September 5, 2024, from 1:00 p.m. to 3:00 
p.m. EDT.
    3. Pursuant to 39 U.S.C. 3661(c) and 39 CFR 3020.111(d), Ping Gong 
is appointed to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this proceeding.
    4. Pursuant to 39 CFR 3020.111(d), the Secretary shall arrange for 
publication of this order in the Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024-19551 Filed 8-29-24; 8:45 am]
BILLING CODE 7710-FW-P