Proposed Rule2023-19363
Periodic Reporting
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 8, 2023
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission is conducting further proceedings and will be accepting further comments with respect to a rulemaking proceeding to consider changes to analytical principles relating to periodic reports (Proposal Two). This document invites further public comment and takes other administrative steps.
Full Text
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<title>Federal Register, Volume 88 Issue 173 (Friday, September 8, 2023)</title>
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[Federal Register Volume 88, Number 173 (Friday, September 8, 2023)]
[Proposed Rules]
[Pages 62023-62024]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-19363]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2023-7; Order No. 6659]
Periodic Reporting
AGENCY: Postal Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Commission is conducting further proceedings and will be
accepting further comments with respect to a rulemaking proceeding to
consider changes to analytical principles relating to periodic reports
(Proposal Two). This document invites further public comment and takes
other administrative steps.
DATES: Comments are due: October 16, 2023.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at <a href="http://www.prc.gov">http://www.prc.gov</a>. 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 Two, Order No. 6659, and Direction for Further
Proceedings
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On May 26, 2023, 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 identified the proposed analytical
changes as Proposal Two. In Order No. 6659 the Commission conditionally
approved Proposal Two but directed the Postal Service to propose
further changes to analytical principles relating to periodic reports
to address what the Commission found to be outstanding issues with
respect to cost identification and attribution for interagency
agreements (IAAs).\2\
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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 Two), May 26, 2023 (Petition).
\2\ Docket No. RM2023-7, Order on Analytical Principles Used in
Periodic Reporting (Proposal Two), Directing the Postal Service's
Participation in Further Proceedings, and Providing Notice of Filing
Attachment Under Seal, August 31, 2023 (Order No. 6659).
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II. Proposal Two, Order No. 6659, and Direction for Further Proceedings
Background. The Postal Service Reform Act of 2022 \3\ modified and
expanded the Postal Service's ability to enter into IAAs to provide
property and services to, or on behalf of, other government agencies.
Specifically, 39 U.S.C. 3703 for the first time authorizes the Postal
Service to enter into agreements with agencies of any state government,
local government, or tribal government to provide property or nonpostal
services to the public on behalf of such agencies for non-commercial
purposes. At the same time, with respect to the Postal Service's pre-
existing authority under 39 U.S.C. 411 to provide property and services
to other Federal agencies, the PSRA specifies that ``[t]he Postal
Service may establish a program to provide property and nonpostal
services to other Government [i.e., federal] agencies within the
meaning of section 411 \4\, but only if such program provides a net
contribution to the Postal Service, defined as reimbursement that
covers at least 100 percent of the costs attributable . . ..'' 39
U.S.C. 3704.
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\3\ Postal Service Reform Act of 2022 (PSRA), Public Law. 117-
108, 136 Stat. 1127 (2022).
\4\ Prior to the enactment of the PSRA, the Postal Service's
authority for these agreements was governed by 39 U.S.C. 411, which
authorizes the Postal Service to ``furnish property and services''
to ``Executive agencies within the meaning of [5 U.S.C. 105] and the
Government Publishing Office. . . .'' 39 U.S.C. 411. Section 105 of
Title 5 of the United States Code specifies that an `` `Executive
agency' means an Executive department, a Government corporation, and
an independent establishment'' of the U.S. Government, as those
terms are defined in 5 U.S.C. chapter 1. 5 U.S.C. 105.
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Under the PSRA, the Postal Service must submit a report to the
Commission after the close of each fiscal year that ``analyzes costs,
revenues, rates, and quality of service for each agreement or
substantially similar set of agreements for the provision of property
or nonpostal services under section 3703 or the program as a whole
under section 3704, . . . using such methodologies as the Commission
may prescribe, and in sufficient detail to demonstrate compliance with
the requirements of [Chapter 37 of Title 39 of the United States
Code].'' 39 U.S.C. 3705(a). Upon receiving the Postal Service's report
and providing an opportunity for public comment, the Commission must
make a written determination of compliance. 39 U.S.C. 3705(e).
In the Commission's FY 2022 Annual Compliance Determination,\5\ the
Commission directed the Postal Service to develop a proposed
methodology (or methodologies) for calculating and attributing costs
and revenue to IAAs authorized under 39 U.S.C. 3703 and 3704, and to
initiate a rulemaking proceeding to establish such methodology (or
methodologies) in accordance with 39 CFR 3050.11 by no later than May
31, 2023. Id. at 102. As directed, the Postal Service initiated the
instant proceeding to propose a categorical approach to identifying
costs and revenue for similar types, or groupings, of IAAs. Petition,
Proposal Two at 2-3.
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\5\ Docket No. ACR2022, Annual Compliance Determination Report,
FY 2022, March 29, 2023.
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Order No. 6659 and direction for further proceedings. In Order No.
6659 the Commission conditionally approved Proposal Two, but directed
the Postal Service to propose further changes to analytical principles
relating to periodic reports to address specific issues that the
Commission found remained unaddressed. First, the Commission directed
the Postal Service to develop a proposed change in accepted analytical
principles to develop a separate line item (or line items) in the Cost
and Revenue Analysis (CRA) and related workbooks to enable the
attribution of costs and related revenue to IAAs. Order No. 6659 at 16.
Second, for agreements with government agencies that involve the
provision of both postal services and property or nonpostal services,
the Commission directed the Postal Service to develop a proposed change
in analytical principles to separately account for the costs and
revenue for those respective portions. Id. The Commission directed the
Postal Service to file proposals related to these issues by September
29, 2023. Id. The Commission will then accept comments on the Postal
Service's proposals until October 16, 2023. Id. at 18.
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III. Notice and Comment
Docket No. RM2023-7 will remain open for consideration of matters
raised in Order No. 6659. More information on this docket may be
accessed via the Commission's website at <a href="http://www.prc.gov">http://www.prc.gov</a>. Interested
persons may submit comments on the Postal Service's proposals no later
than October 16, 2023. Pursuant to 39 U.S.C. 505, Manon A. Boudreault
shall continue to serve 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:
1. For purposes of periodic reporting to the Commission, the
Commission conditionally approves the changes in analytical principles
proposed by the Postal Service in Proposal Two.
2. Docket No. RM2023-7 will remain open for consideration of the
matters raised in Order No. 6659.
3. The Postal Service shall file information addressing the issues
identified in the body of this Order by September 29, 2023.
4. Comments by interested persons on the Postal Service's proposals
are due no later than October 16, 2023.
5. Pursuant to 39 U.S.C. 505, Manon A. Boudreault shall continue to
serve as an officer of the Commission (Public Representative) to
represent the interests of the general public in this docket.
6. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2023-19363 Filed 9-7-23; 8:45 am]
BILLING CODE 7710-FW-P
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</html>Indexed from Federal Register on September 8, 2023.
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