70132 Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Rules and Regulations 

certifies the equipment for a 

manufacturer and the user. Certified 

equipment can be used until the 

expiration of the applicable MASS 

cycle. Ordinarily, a MASS testing cycle 

extends from August 1st through July 

31st of the next year, and permits use 

until the following July 31st. 

1.26 NCOA Link

The NCOA Link service makes changeof-address information for moves 

available to mailers. The Postal Service 

tests the systems under the Developer, 

Full Service Provider, Limited Service 

Provider, End User, and Mail Processing 

Equipment licenses to ensure that they 

meet Postal Service performance 

requirements. The six types of licenses 

are listed in 1.26.1 through 1.26.6. 

1.26.1 NCOA Link Interface Developer 

NCOA Link Interface Developer service 

grants the right to develop a software 

interface between address-matching 

software and the NCOA Link service 

database. 

1.26.2 NCOA Link Interface Distributor 

NCOA Link Interface Distributor 

service grants the right to unlimited 

sublicensing of software interfaces 

developed pursuant to an NCOA Link

Interface Developer License. 

1.26.3 NCOA Link Full Service 

Provider (FSP) 

NCOA Link FSP service grants the right 

to perform address list updating services 

for both the licensee and third party 

mailers using 48 months of change-ofaddress data. Postal Service database 

services such as DPV and LACS Link are 

included. 

1.26.4 NCOA Link Limited Service 

Provider (LSP) 

NCOA Link LSP service grants the right 

to perform address list updating services 

for third-party mailers, as well as for the 

licensee’s own mail using 18 months of 

change-of-address data. 

1.26.5 NCOA Link End User Mailer 

NCOA Link End User Mailer service 

grants a mailer the right to perform 

address list updating for its own mail 

using 18 months of change-of-address 

data. 

1.26.6 NCOA Link Mail Processing 

Equipment 

NCOA Link Mail Processing 

Equipment service grants a mailer the 

right to either perform address updating 

directly onto its mailpieces using 18 

months of change-of-address data and 

an MLOCR or to create an electronic file 

for address updating using other mail 

processing equipment. 

1.27 NCOA Link — ANK Link Service 

Option 

ANK Link provides an option for 

NCOA Link LSP and End User Mailer 

licensees to acquire an additional 30 

months of change-of-address 

information. ANK Link informs mailers 

that a customer has moved, along with 

the move effective date. It does not 

provide the new address. 

1.28 Official National Zone Charts 

The Official National Zone Charts 

identify the appropriate distance code 

assigned to each originating and 

destination pairing for every ZIP Code 

in the nation. 

1.29 Periodicals Accuracy, Grading, 

and Evaluation System Certification 

The Periodicals Accuracy, Grading, 

and Evaluation (PAGE) system evaluates 

and certifies the accuracy of publication 

and print planning (PPP) software that 

calculates virtual copy weight and the 

percentage of advertising consistent 

with Periodicals computation standards, 

and certifies users of PPP software who 

demonstrate knowledge of the software 

for Periodicals mailings based on DMM 

standards and applicable USPS 

Customer Support Rulings. Software 

and users are certified until the 

expiration of the applicable PAGE cycle. 

1.30 PAVE System Certification 

The PAVE (presort accuracy 

validation evaluation) system evaluates 

and certifies the accuracy of presort 

software that sorts mailing lists 

consistent with DMM mail preparation 

standards. Software is certified until the 

expiration of the applicable PAVE cycle. 

1.31 RDI Service 

The RDI service verifies whether a 

delivery type is classified as residential 

or business. 

1.32 Topological Integrated 

Geographic Encoding and Referencing 

Topological Integrated Geographic 

Encoding and Referencing (TIGER/ 

ZIP+4) service is a bridge file that 

allows mailers to access other 

information using the ZIP+4 codes they 

already have associated with their 

addresses. This file offers demographers 

and market researchers a method to 

relate ZIP+4 coded address lists to U. S. 

Census Bureau demographic data. 

1.33 Z4CHANGE 

The Z4CHANGE service provides the 

information necessary to facilitate 

frequent and cost-effective updating of 

very large computerized mailing lists for 

automation compatibility and improved 

deliverability. Copying is allowed for an 

additional fee. 

1.34 Z4INFO 

Z4INFO is an add-on utility to the 

ZIP+4 service that can be integrated into 

address-matching software to improve 

address quality. There is no charge for 

this service. 

1.35 ZIP+4 Service 

The ZIP+4 service is the base 

reference that can be used to assign the 

correct ZIP+4 code associated with a 

physical address. Copying is allowed for 

an additional fee. 

1.36 ZIPMove 

The ZIPMove data file assists addressmatching software in providing up-todate, accurate ZIP+4 codes. 

1.37 ZIP Code Sortation of Address 

Lists 

ZIP Code Sortation of Address Lists 

service provides sortation of addresses 

to the finest possible ZIP Code level. 

1.38 99 Percent Accurate Method 

The 99 Percent Accurate Method 

provides testing of mailers’ address lists 

to determine whether they are at least 

99 percent accurate. 

* * * * * 

We will publish an appropriate 

amendment to 39 CFR Part 111 to reflect 

these changes. 

Stanley F. Mires, 

Chief Counsel, Legislative. 

[FR Doc. 2010–28590 Filed 11–16–10; 8:45 am] 

BILLING CODE 7710–12–P 

POSTAL SERVICE 

39 CFR Part 111 

New Incentive Programs and Other 

Changes for Domestic Mailing 

Services 

AGENCY: Postal Service.TM

ACTION: Final rule. 

SUMMARY: The Postal Service will revise 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM ®) to incorporate standards for 

the two new Mailing Services incentive 

programs filed in November 2010 with 

the Postal Regulatory Commission 

(PRC). This final rule also includes 

DMM revisions related to Move Update 

standards, also in the November 2010 

PRC filing. 

DATES: January 2, 2011. 

FOR FURTHER INFORMATION CONTACT: Bill 

Chatfield, 202–268–7278. 


erowe on DSK5CLS3C1PROD with RULES
Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Rules and Regulations 70133 

SUPPLEMENTARY INFORMATION: On July 9, 

2010, the Federal Register published a 

Postal Service proposed rule, New 

Standards for Domestic Mailing Services 

(75 FR 39477–39492). We received 

comments from three mailer 

associations regarding the Reply Rides 

Free incentive program that was part of 

that filing and comments on the 

proposed changes to the Move Update 

tolerance. We have subsequently made 

a new filing with the PRC to implement 

the two incentive programs (Reply Rides 

Free and the Saturation/High Density) 

and changes to the Move Update 

tolerance. The other changes proposed 

in July will be addressed in a separate 

final rule to be published in the Federal 

Register. 

This final rule includes a recap of the 

two incentive programs and the Move 

Update changes, customer comments, 

our responses to the comments, and the 

mailing standards to implement the 

changes. 

Reply Rides Free First-Class Mail 

Incentive Program 

The Postal Service encourages the 

growth of automation letter-size mail 

volume, particularly pieces that are part 

of full-service Intelligent Mail ®

automation mailings entered at 

PostalOne! ® acceptance facilities. 

Accordingly, effective January 2, 2011, 

we will offer an option for First-Class 

Mail letters weighing over 1 ounce up 

to and including 1.2 ounces to qualify 

for postage payment at the 1-ounce price 

when those letters include a reply card 

or reply envelope under specified 

conditions. Reply pieces must bear an 

Intelligent Mail barcode as of May 1, 

2011. 

This new program provides an 

incentive for mailers to include more 

content in their automation First-Class 

Mail letters by providing a postage 

credit equal to the second ounce of 

postage for eligible letters as follows: 

• Eligible letters must qualify for 

automation letter prices and weigh more 

than 1 ounce up to 1.2 ounces. At the 

time of mailing, mailers pay the 

applicable 2-ounce price for these 

pieces. All commercial (presorted and 

automation) First-Class Mail letter-size 

volume counts towards meeting an 

overall mail volume threshold, but only 

those letters qualifying for automation 

letter prices will be eligible for postage 

credit. As of May 1, 2011, only those 

automation letters qualifying for and 

mailed at full-service automation letter 

prices will be eligible for postage credit 

under this incentive program. 

• Letters must include a reply card or 

envelope, either Business Reply Mail ®

or Courtesy Reply Mail TM. As of May 1, 

2011, reply pieces must bear an accurate 

Intelligent Mail barcode corresponding 

to the delivery address on the piece. The 

reply piece may be in the form of a 

reusable envelope. Permit reply mail 

pieces are not eligible for this program. 

• The postage credit will be for the 

amount paid for the second ounce and 

is provided for those pieces mailed as 

automation letters during the 2011 

program period (January 2, 2011 

through December 31, 2011) when the 

mailer’s volume of all commercial FirstClass Mail letter-size mailpieces mailed 

in this period is at least 2.5 percent 

greater than the mailer’s trend of all 

commercial First-Class Mail letter-size 

volume mailed during USPS ® fiscal 

year (FY) 2010 (October 1, 2009 through 

September 30, 2010) compared to 

volume mailed in USPS FY 2009 

(October 1, 2008 through September 30, 

2009). The threshold volume for 

program postage credit eligibility is the 

amount that is 2.5 percent greater than 

the mailer’s projected volume based on 

the mailer’s trend, except that mailers 

with a positive trend must mail at least 

2.5 percent more letter volume during 

calendar year 2011 than during fiscal 

year 2010. For example, if a mailer’s 

letter-size volume has declined from 

100,000 to 95,000 pieces (a 5 percent 

decline) from FY 2009 to FY 2010, the 

projected volume for 2011 at the same 

trend would be 90,250 (95,000 times 

.95). That mailer’s volume must be at 

least 92,507 (1.025 times 90,250) during 

the program period to meet the 

eligibility threshold. A mailer with a 

positive trend (for example, an increase 

from 90,000 to 100,000 letters) would 

have a threshold that is 2.5 percent 

more than their FY 2010 volume or 

102,500 (100,000 times 1.025). 

• Separate thresholds will be set for 

each of the first three quarters of 

calendar year 2011, based on the trend 

for each comparable quarter in FY 2010. 

Postage credit will be provided after the 

end of each quarter, upon calculation 

and verification of the mail volume 

data. 

• The threshold for quarter four of 

calendar year 2011 will be the yearly 

threshold, with all previous three 

quarters’ volume being added to the 

volume for quarter four. Postage credit 

will be provided at the end of quarter 

four only when the annual volume 

threshold is met. 

• Mailers who do not meet the 

calendar year 2011 volume threshold 

are retroactively ineligible for any 

postage credit for this program. 

• Mailers who did not mail 

commercial First-Class Mail letters in 

FY 2009 may not participate in the 

Reply Rides Free program. 

• The program period will be from 

January 2, 2011 through December 31, 

2011. 

Mail owners, but not mail service 

providers, who have mailed commercial 

First-Class Mail letters during USPS FY 

2009 and 2010 may apply to participate 

in this incentive program by following 

instructions provided at: http:// 

www.usps.com/firstclassmailincentive, 

no later than December 31, 2010. Mail 

owners must validate that they have 

mailed, or intend to mail, at least one 

commercial presorted or automation 

mailing of First-Class Mail letters during 

each of the fiscal years 2009 and 2010 

and should state their intent to mail 

First-Class Mail letters containing 

qualifying reply pieces weighing more 

than 1 ounce up to 1.2 ounces during 

the 2011 program period. After 

registration, mail owners must supply 

adequate proof of the total qualifying 

mail volume claimed for USPS FY 2009 

and FY 2010 in order to be eligible for 

participation. 

Comments on Reply Rides Free Program 

All three mailer associations offering 

comments objected to the full-service 

(Intelligent Mail) automation letter 

requirement for mailpieces eligible for 

postage credit and our provision of 

postage credit being issued at the end of 

the program year. Due to the USPS 

commitment to continue to encourage 

participation in full-service Intelligent 

Mail, we are retaining the provision to 

provide postage credit only for fullservice automation letters meeting the 

other requirements of the program, but 

we will postpone that requirement until 

May 1, 2011. Although the incentive 

goals are ultimately based on annual 

mail volumes, we will be providing 

quarterly reconciliations and postage 

credit after the end of each quarter when 

mail volumes meet pro-rated thresholds, 

but the mailer’s eligibility for postage 

credit is still based on meeting the 

annual mail volume threshold. 

One association advocated charging 

additional postage equivalent to 2/10 of 

the second-ounce price. We will not be 

implementing any changes to charge 

postage for First-Class Mail letters by 

tenths of an ounce. 

Two commenters noted the need for 

mailers to be able to determine an 

adequate return on investment and 

suggested that the program be extended 

to last 3 years. After the end of the 

program period, we will be evaluating 

the feasibility of extending or renewing 

this incentive program. 

Two associations suggested that we 

substitute volume requirements for 

returned reply pieces rather than have 

outgoing mail volume thresholds and 


erowe on DSK5CLS3C1PROD with RULES
70134 Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Rules and Regulations 

that we provide advance certification of 

eligible mailpieces to mitigate potential 

problems identifying eligible mailpieces 

in combined mailings of multiple 

mailpieces. We will evaluate the reply 

mail volume recommendation as a 

potential component for future 

incentive programs. 

Other issues/concerns noted by 

commenters were: 

• A clear definition of the ‘‘mailer’’ is 

needed; 

• The current restrictions on when 

mailers may apply to participate 

appears to be too limiting; 

• By excluding mail service 

providers, significant First-Class Mail 

letter volume is omitted; 

• Mailers having to certify previous 

mail volumes may be at legal risk if the 

information is found to be inaccurate; 

and, 

• Software may not accommodate the 

recording of incremental weight 

volumes needed to distinguish pieces 

that weigh no more than 1.2 ounces. 

Identification of the mailer is similar 

to previous incentive programs; the 

entity who is responsible for postage 

payment for mailpieces is considered to 

be the owner of that mail. Mail service 

providers are not considered mail 

owners for the purposes of this program. 

We do not consider the registration 

period for this program too restrictive. 

Mailers who register for this initiative 

have no further obligations if they 

decide at a later time that they would 

not be able to submit any mailings 

under this program. 

The exclusion of MSPs from direct 

participation is similar to the 

parameters for previous incentive 

programs, but we anticipate that MSPs 

will assist those mail owners (for whom 

they produce mailings) who may want 

to participate. Previous mail volume 

should be provided with accompanying 

documentation, which will lessen the 

risk of providing inaccurate 

information. 

Additionally, as part of the program 

administration, the Postal Service 

requires each program participant to 

certify the data used to calculate the 

participant’s program threshold(s). This 

certification requirement is similar to 

that currently used on a postage 

statement and is designed to ensure that 

the data used by the Postal Service to 

calculate the threshold level(s) are 

accurate. 

We are working with software 

vendors to ensure that requirements will 

be effectively communicated. Upon 

completion of PRC review for this 

program, we will be making additional 

information available at http:// 

www.usps.com//firstclassmailincentive. 

2011 Saturation and High Density 

Incentive Program 

The Postal Service will implement an 

incentive program designed to increase 

the volume of Standard Mail and 

Nonprofit Standard Mail letters and flats 

mailed at saturation and high density 

prices, upon completion of PRC review. 

Mailers of Standard Mail or Nonprofit 

Standard Mail saturation or high density 

letters and/or flats (complete 

mailpieces) applying for participation in 

the program must meet the eligibility 

requirements for participation in the 

price category selected. Mailers meeting 

the eligibility criteria are able to 

participate in both the saturation and 

high density categories simultaneously. 

Participants have the option to 

demonstrate growth in total mailed 

volume or growth within a defined 

market. Mailers who participate only 

within defined market areas are 

required to demonstrate volume growth 

within a specific, or group of specific, 

USPS sectional center facility (SCF) 

service area(s) to qualify for the 

incentive. Participants have the option 

to select one or more, up to a maximum 

of 20, individual SCF areas or up to five 

metropolitan target markets (consisting 

of multiple contiguous SCFs) for 

participation in the program and must 

meet the eligibility requirements for 

each area selected. The USPS must 

approve all applicant-selected market 

areas prior to acceptance into the 

program. 

Franchisees that are not separate 

business entities cannot apply for an 

incentive independently of the parent 

organization. Applicants will receive a 

credit for volume mailed, within their 

selected growth area and price category, 

above their USPS-determined volume 

threshold. The program period will be 

from January 2, 2011 through December 

31, 2011. 

To participate, mailers must be the 

permit holder (i.e., owner) of a permit 

imprint advance deposit account(s) at a 

postal facility having PostalOne! 

capability or be the owner of qualifying 

mail volume entered through the permit 

imprint advance deposit account of a 

mail service provider at a postal facility 

having PostalOne! capability. Only the 

volume of the mail owner, defined as 

the entity paying for the postage, will be 

eligible within the program period to 

meet eligibility requirements. Mail 

service providers and customers 

supplying inserts, enclosures, or other 

components included in the saturation 

or high density mailings of another 

mailer are not eligible to participate in 

this program. 

Standard Mail or Nonprofit Standard 

Mail saturation or high density letters 

and/or flats (complete mailpieces) 

mailed through a permit imprint 

advance deposit account, precanceled 

stamp permit, or a postage evidencing 

system owned by a mail service 

provider may be included as volume 

within the program, and towards 

program eligibility, when adequate 

documentation demonstrates that the 

applicant is the owner of the mail. 

Participants must electronically 

submit postage statements and mailing 

documentation to the PostalOne! system 

for the duration of the program period. 

Mailers participating within a defined 

market area(s) must electronically 

submit postage statements and mailing 

documentation to the PostalOne! using 

Mail.dat® or Mail.XML®. All other 

mailers may submit postage statements 

through Postal Wizard. 

Applicants must demonstrate a 

combined minimum of six saturation or 

high density mailings within the period 

of October 1, 2009 to September 30, 

2010. Applicants meeting the other 

eligibility criteria may participate in 

both price categories simultaneously. 

Applicants who choose to participate 

only within defined market areas must 

meet the eligibility criteria 

independently for each selected SCF 

service area or selected metropolitan 

target market. 

Mail owners participating in the 2011 

Saturation and High Density Incentive 

Program are not eligible for concurrent 

participation in any other Postal 

Service-sponsored volume incentive 

program that includes Standard Mail 

pieces in the saturation or high density 

price categories. 

Thresholds for the 2011 Saturation 

and High Density Incentive Program are 

set at 5 percent above the volume of 

Standard Mail or Nonprofit Standard 

Mail saturation and high density letters 

and flats recorded in the 2010 calendar 

year, within each participant-selected 

growth area and price category. 

Applicants electing to participate in 

both the saturation and high density 

price categories must exceed the 

combined thresholds of both categories 

before qualifying for an incentive 

payment in either category. 

Approved program participants 

demonstrating a volume increase above 

their threshold level, in their total 

Standard Mail or Nonprofit Standard 

Mail saturation and high density letters 

and flats volume within their total 

market area, selected SCF service areas, 

or metropolitan target market, qualify 

for a credit to a single designated permit 

imprint advance deposit account or 

Centralized Account Payments System 


erowe on DSK5CLS3C1PROD with RULES
Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Rules and Regulations 70135 

(CAPS) account, following the close of 

the 2011 Saturation and High Density 

Incentive Program. The total postage 

paid for Standard Mail saturation and 

high density letters and flats within the 

program period will be identified for 

each participant and divided by the 

total number of recorded pieces to 

generate the average price per piece. 

Participants will receive a credit in the 

amount of a percentage of the average 

price per piece, for the total number of 

mailpieces of their incremental volume 

above their threshold level, recorded 

during the program period as follows: 

Participation 

level 

Standard 

mail 

(%) 

Nonprofit 

standard mail 

(%) 

Saturation ................................................................................................................................................................. 22 8 

High Density ............................................................................................................................................................ 13 8 

Program Administration 

Those mailers identified by the Postal 

Service as being eligible to participate in 

the program will be sent an invitation 

letter after November 1, 2010. The 

invitation letter will direct mailers to 

apply for the program online at http:// 

www.usps.com/SaturationHD. Mailers 

wishing to participate in the program, 

but who were not notified by letter, may 

request a review of their eligibility by 

contacting the USPS no later than 

December 10, 2010 at 

SaturationHDIncentive@usps.gov. or by 

submitting an online application. Any 

mailer wishing to participate in the 

program must initially apply online no 

later than December 31, 2010. 

Mailers completing the online 

application process will receive an 

electronic response from the USPS that 

includes: 

• An individual volume threshold 

report. 

• A certification letter. 

• A threshold inquiry form. 

The individual threshold report will 

display the applicant’s USPS-recorded 

saturation and/or high density mail 

volume for the 2010 calendar year. 

Applicants agreeing with their threshold 

volume(s) have the option to sign the 

provided certification letter and return a 

copy via e-mail or mail a hardcopy to 

Saturation Incentive Program Office, 

475 L’Enfant Plaza SW., RM 5500, 

Washington, DC 20260–5500, to register 

for the program. Applicants not agreeing 

with any portion of their USPScalculated threshold(s) must complete 

the threshold inquiry form along with 

supporting evidence and return it via email or hardcopy, no later than March 

15, 2011. 

In addition to Standard Mail volume 

prepared and entered directly by the 

mailer (applicant), applicants will also 

be eligible to participate in the program 

with qualifying volume prepared by a 

mail service provider when entered 

through a permit owned by the 

applicant. Mail volume entered through 

a mail service provider’s permit will 

also qualify for the program if adequate 

documentation, such as postage 

statements, PS Form 3602–R or PS Form 

3602–N, identify the mail as being 

prepared on behalf of the applicant and 

demonstrates the applicant’s 2010 

mailing activity. 

Additionally, as part of the program 

administration, the Postal Service 

requires each program participant to 

certify the data used to calculate the 

participant’s program threshold(s). This 

certification requirement is similar to 

that currently used on a postage 

statement (PS Form 3602–R or 3602–N) 

and is designed to ensure that the data 

used by the Postal Service to calculate 

the threshold level(s) are accurate. 

Move Update Changes 

Following completion of the PRC 

review, the Postal Service is changing 

the tolerance for First-Class Mail and 

Standard Mail pieces, found through a 

Performance-Based Verification (PBV) 

procedure to be lacking an update via 

Move Update procedures, from the 

current 30 percent to a 25 percent 

tolerance before we charge a 7-cent per 

piece assessment. 

The Move Update standards, 

applicable to commercial mailings of 

First-Class Mail and Standard Mail 

mailpieces, are designed to reduce the 

number of mailpieces that require 

forwarding, return, or disposal as waste, 

thus reducing Postal Service costs. The 

standards also help to assure that mail 

reaches its intended recipients in a 

timely manner. 

Performance-Based Verification 

procedures introduced in 2009 allow 

the Postal Service to sample mailings 

during the acceptance process to 

compare mailpiece addresses with the 

National Change of Address (NCOA®) 

database. For the Move Update portion 

of PBV, addresses on the verification 

sample are compared to the NCOA 

database and the ratio of the number of 

failed changes of address (COAs) 

(addresses that should have been 

updated per Postal Service records), to 

the number of actual COAs in the 

sample is calculated. Currently, if this 

ratio for the sample is sufficiently high 

(30 percent or more), pieces above that 

tolerance in a First-Class Mail or 

Standard Mail mailing are subject to 

additional postage (the Move Update 

assessment charge). 

In a final rule Federal Register notice 

published October 27, 2009 (74 FR 

55140–55142), we stated: ‘‘We will 

analyze the results of the PBV samples 

periodically, and will adjust the 

tolerance as needed to ensure the 

effectiveness of mailers’ Move Update 

processes.’’ Accordingly, the Postal 

Service has filed with the PRC to change 

the current 30-percent tolerance to 25 

percent before a Move Update 

assessment postage charge would be 

incurred. 

Comments on Move Update 

We received comments about the 

change in the Move Update tolerance 

change from three mailer associations. 

Two commenters objected to 

placement of the Move Update 

assessment charge in Notice 123ƒPrice 

List as inappropriate to include because 

the assessment is not a product which 

mailers choose to purchase. While we 

agree that the assessment charge is not 

a price that mailers choose to pay as a 

mailer might choose to pay an 

additional fee to mail a First-Class Mail 

letter as Certified Mail, inclusion of the 

fee assists in publicizing it so that 

mailers are more aware of it. 

One association questioned the 

appearance of a Move Update 

noncompliance charge for Standard 

Mail and noted that more information is 

needed about the application of the 

charge. This charge was not mentioned 

in the previous proposed rule; 

applicability of this charge would be a 

subject of a separate and future Federal 

Register notice. 

Two associations asked for more 

rationale behind changing the tolerance 

percentage. The change to the tolerance 

percentage used within the formula to 

calculate the Move Update Assessment 

Charge for mailings that fail the quality 

standard for correcting addresses after a 

customer move is reasonable based on 

the demonstrated performance currently 

being achieved by the mailing industry. 


erowe on DSK5CLS3C1PROD with RULES
70136 Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Rules and Regulations 

One association asserted that applying 

Move Update standards to Standard 

Mail has not resulted in any lessening 

of the percentage of undeliverable-asaddressed (UAA) mail, and two other 

associations asked for more data gleaned 

from the PBV process. An evaluation of 

45,589 mailings during a two-month 

period showed that overall, 98.8 percent 

of all sampled mailings passed the Move 

Update verification with an average 

score of 99.7%. For the 546 mailings 

that fell into the 1.2 percent that failed 

the Move Update verification reviews, 

the average score was 64.4 percent. 

These data indicate that the vast 

majority of the mailing industry will not 

be affected by a change in the tolerance. 

One association suggested that the 

assessment charges would more 

appropriately apply to the total volume 

of UAA mailpieces in a mailing, instead 

of applying charges to the whole 

mailing based on the percentage of UAA 

mailpieces. Where mailers are currently 

allowed to have up to 30 percent of the 

addresses (in a mailing) with an 

outdated address more than 95 days 

following a customer’s move, the new 

tolerance will be reduced to 25 percent. 

This is a minimal tightening of the 

quality standard that is necessary to 

continue to reduce the percentage of 

poorly-addressed commercial mail that 

is produced by mailers and delivered by 

the Postal Service. 

One association implied that the 

Postal Service is using the tightening of 

the tolerance as a means to generate 

money via fines. This is not 

substantiated by the data. Using the data 

described previously, the 546 mailings 

that failed at the 30-percent threshold 

tolerance incurred approximately 

$47,000 in additional charges, or 

approximately $86 per mailing on 

average. Tightening the tolerance further 

incents mailers to improve their 

processes to update customer address 

information. The Postal Service has 

advised the mailing industry of its 

intent to continue to modify the 

tolerance in each of the next 2 years. In 

anticipation of these changes, mailers 

should continually review their 

processes. The Postal Service will 

continue to monitor the data and share 

the information with the mailing 

industry through the Mailer’s Technical 

Advisory Committee. Our focus will be 

to ensure that the current high level of 

performance is maintained within the 

mailing industry. 

In accordance with the Postal 

Accountability and Enhancement Act, 

on November 2, 2010, the Postal Service 

filed a Notice with the Postal Regulatory 

Commission (PRC) regarding the 

incentive programs and the change in 

the Move Update tolerance. Regulatory 

review will take up to 45 days from that 

date. 

The Postal Service adopts the 

following changes to the Mailing 

Services of the United States Postal 

Service, Domestic Mail Manual (DMM), 

which is incorporated by reference in 

the Code of Federal Regulations. See 39 

CFR Part 111.1. 

List of Subjects in 39 CFR Part 111 

Administrative practice and 

procedure, Postal Service. 

■ Accordingly, 39 CFR Part 111 is 

amended as follows: 

PART 111—[AMENDED] 

■ 1. The authority citation for 39 CFR 

Part 111 continues to read as follows: 

Authority: 5 U.S.C. 552(a); 13 U.S.C 301– 

307; 18 U.S.C. 1692–1737; 39 U.S.C. 101, 

401, 403, 404, 414, 416, 3001–3011, 3201– 

3219, 3403–3406, 3621, 3622, 3626, 3632, 

3633, and 5001. 

■ 2. Revise the following sections of 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM), as follows: 

* * * * * 

200 Commercial Letters and Cards 

* * * * * 

230 First-Class Mail 

233 Prices and Eligibility 

* * * * * 

3.0 Basic Standards for First-Class 

Mail Letters 

* * * * * 

3.5 Move Update Standard 

* * * * * 

3.5.4 Basis for Move Update 

Assessment Charge 

[Revise the introductory text of 3.5.4 to 

read as follows:] 

Mailings are subject to a Move Update 

assessment charge if more than 25 

percent of addresses with a change-ofaddress (COA) are not updated, based 

on the error rate found in USPS 

sampling at acceptance during 

Performance-Based Verification. 

Specifically, mailings for which the 

sample contains greater than 25 percent 

failed COAs out of the total COAs in the 

sample are subject to additional postage 

charges as follows: 

[Revise item 3.5.4a as follows:] 

a. The percentage of the mailing 

paying the charge is based on the 

percentage of failed pieces above 25 

percent (%). 

* * * * * 

[Revise item 3.5.4c as follows:] 

c. As an example, if 35% of COAs in 

the sample are not updated, then the 

charge is applied to 10% (=35%¥25%) 

of the total mailing. 

* * * * * 

[Add new 7.0 to read as follows:] 

7.0 First-Class Mail Incentive 

Programs 

7.1 General Description 

First-Class Mail incentive programs 

are designed to encourage mail volume 

growth and retention. 

7.2 Reply Rides Free Program 

The Reply Rides Free program 

provides an incentive for mailers to 

include additional contents in their 

automation First-Class Mail letters by 

providing a postage credit for letters 

weighing over 1 ounce but no more than 

1.2 ounces. Applicants are required to 

review and certify the accuracy of the 

data used by the USPS to calculate their 

threshold level (see 7.2.1); and, upon 

request, may be required to provide 

documentation of their mailing activity 

in fiscal years 2009 and 2010 and during 

the 2011 program period. 

7.2.1 Basic Mailpiece Eligibility 

Letter-size mailpieces mailed by an 

approved program participant are 

eligible for a postage credit under all of 

the following conditions: 

a. Eligible automation letters must 

weigh more than 1 ounce but no more 

than 1.2 ounces. Mailers pay the 

applicable 2-ounce price for these 

pieces. As of May 1, 2011, automation 

letters must be eligible for and mailed 

at full-service (see 705.22) Intelligent 

Mail prices. 

b. Letters must include a reply card or 

envelope, either Business Reply Mail or 

Courtesy Reply Mail. The reply piece 

may be part of a reusable envelope 

prepared according to 601.6.4 or 

601.6.5. Mailers must provide a sample 

of the reply card or envelope at the time 

of mailing. Reply pieces must be 

automation-compatible and must bear 

the correct Intelligent Mail barcode 

corresponding to the address as of May 

1, 2011. 

c. The postage credit is for the amount 

paid for the second ounce for eligible 

letters that meet the standards in 7.2, 

that are mailed during the 2011 program 

period, and that meet or exceed their 

USPS-determined threshold volume for 

2011. To be eligible for program 

participation, a mailer must have mailed 

at least one mailing of 500 or more 

presorted or automation First-Class Mail 

letters during USPS fiscal years (FY) 

2009 and 2010 (October 1 through 


erowe on DSK5CLS3C1PROD with RULES
Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Rules and Regulations 70137 

September 30). The threshold volume is 

determined as follows: 

1. The USPS determines a mailing 

volume trend for mailers with all 

commercial First-Class Mail letter 

volume mailed during both USPS FY 

2009 and USPS FY 2010. To qualify for 

postage credit, the mailing volume in 

2011 must be at least 2.5 percent greater 

than the projected mail volume based 

on the volume trend percentage from FY 

2009 to FY 2010. For example, if a 

mailer’s letter-size volume has declined 

from 100,000 to 95,000 pieces (a trend 

of 5 percent decline) from USPS FY 

2009 to USPS FY 2010, that mailer’s 

projected volume for 2011 would be 

95,000 pieces times 0.95 (90,250). The 

actual volume mailed during calendar 

year 2011 must be at least 92,507 pieces 

(the threshold volume, which is 1.025 

times the projected volume of 90,250) 

during the program period. 

2. However, mailers with a positive 

volume trend will have a threshold of 

2.5 percent more than their FY 2010 

volume, rather than 2.5 percent more 

than their trend. For example, a mailer’s 

whose volume rose from 90,000 in FY 

2009 to 100,000 in FY 2010 would have 

a threshold for the 2011 calendar year 

of 102,500 (1.025 times 100,000). 

d. In addition to an annual volume 

threshold, separate thresholds will be 

set for each of the first three quarters of 

calendar year 2011, based on the trend 

for each comparable quarter in FY 2010. 

Quarterly thresholds for mailers with a 

positive mail volume trend will be set 

at 2.5 percent more than the volume in 

the comparable quarter of FY 2010. 

Postage credit will be provided after the 

end of each quarter, upon calculation 

and verification of the mail volume 

data. 

e. The threshold for quarter four of 

calendar year 2011 will be the yearly 

threshold, with all previous three 

quarters’ volume being added to the 

volume for quarter four. Postage credit 

will be provided at the end of quarter 

four only when the annual volume 

threshold is met. 

f. Credit is provided to the mail 

owner’s CAPS account, upon USPS 

calculation and verification of the mail 

volume data after the end of each 

quarter. 

g. The program period for eligible 

mail volume is from January 2, 2011 

through December 31, 2011. To be 

eligible for any postage credit, the 

participant must ensure that the total 

volume of First-Class Mail commercial 

letters paid at presorted or automation 

letter prices mailed during the 2011 

program period meets or exceeds the 

USPS-determined threshold volume, as 

determined under 7.2.1. 

h. Mailers who do not meet the 

calendar year 2011 volume threshold 

are ineligible for any postage credit for 

this program. Any quarterly credits 

provided to mailers for quarters one 

through three must be returned to the 

Postal Service if the calendar year 2011 

volume threshold is not met. 

7.2.2 Mailer Participation Eligibility 

and Documentation 

Mail service providers are not eligible 

to participate in this program. Mail 

owners are considered eligible for the 

program as follows: 

a. Applicants must have mailed at 

least one presorted or automation FirstClass Mail mailing of 500 letters or more 

during both USPS FY 2009 and FY 

2010. Applicants must be able to 

document their total mailed volume of 

commercial First-Class Mail letters for 

FY 2009 and 2010, as follows: 

1. Volume through one or more 

permit imprint advance deposit 

accounts, precanceled stamp permits, or 

postage meter permits owned by the 

applicant, or 

2. Volume prepared by a mail service 

provider when entered through a permit 

owned by the applicant, or 

3. Volume mailed under a mail 

service provider’s permit that can be 

specifically identified as being mailed 

on behalf of the applicant. 

b. Approved participants must be able 

to document the total mailed volume of 

letters that are eligible, under 7.2, for 

postage credit. Accordingly, pieces must 

be presented for mailing under either of 

the following conditions: 

1. A separate mailing of identical 

weight pieces, all of which weigh more 

than 1 ounce up to 1.2 ounces. 

2. A mailing of nonidentical weight 

pieces, supported by documentation 

under the manifest mailing standards in 

705.2.0, with individual piece weight 

listings substantiating that participant 

pieces weigh more than 1 ounce but no 

more than 1.2 ounces. The manifest 

listing must also provide a total of 

eligible pieces. 

c. At the end of the 2011 program 

period, approved participants must be 

able to document their total mailed 

volume of commercial First-Class Mail 

letters during the program period, the 

total mail volume eligible for postage 

credit under 7.2.2b, and meet the 

following conditions: 

1. Letters mailed in the 2011 program 

period that meet the USPS-determined 

mail volume threshold, as provided in 

7.2.1, must weigh more than 1 ounce up 

to a maximum of 1.2 ounces. 

2. Letters mailed during the 2011 

program period must contain a reply 

card or reply envelope. Reply pieces 

must be automation-compatible and 

barcoded. As of May 2011, the barcode 

on reply pieces must bear the correct 

Intelligent Mail barcode corresponding 

to the address on the reply piece. 

3. Credit applies only to automation 

letters; as of May 1, 2011 credit will 

apply only for automation letters mailed 

under the full-service automation option 

described in 705.22. 

d. Fluctuations in mailing activity 

resulting from the merger or acquisition 

of one or more program participants, 

prior or subsequent to the beginning of 

the program period, are subject to 

review, possible recalculation of 

thresholds, and approval by the USPS. 

e. Mailers participating in the Reply 

Rides Free incentive program are not 

eligible for simultaneous participation 

in any other USPS-sponsored volume 

incentive program that includes FirstClass Mail commercial letters during the 

2011 program period. 

7.2.3 Application 

Mail owners wishing to participate 

may apply at http://www.usps.com/ 

firstclassmailincentive no later than 

December 31, 2010. Following 

registration, mailers are required to 

provide documentation demonstrating 

their total commercial First-Class Mail 

letter volume mailed during USPS FY 

2009 and FY 2010 (as described in 

7.2.1). The USPS reviews the 

documentation provided for adequacy 

and provides an electronic response that 

includes: 

a. Notification of approval (or of the 

need for additional documentation) for 

participation in the program. 

b. Applicant’s verified mail volume 

for USPS FY 2009 and FY 2010. 

c. Applicant’s 2011 mail volume 

threshold for program and postage 

credit eligibility. 

d. A certification letter. Mailers must 

present a printed copy of the 

certification letter to a postal acceptance 

employee with the first mailing under 

this program, at each mailing office. 

7.2.4 Mailer Response 

Mailers wishing to dispute the USPSverified mail volume or USPSdetermined threshold (see 7.2.1) may 

request a review by following the 

procedure outlined at http:// 

www.usps.com/firstclassmailincentive 

no later than February 15, 2011. 

7.2.5 Program Credits 

Approved participants that can 

demonstrate an increase in their mailed 

volume of commercial First-Class Mail 

letters in the 2011 program period, 

meeting or exceeding the threshold 

volume as determined under 7.2.1, 


erowe on DSK5CLS3C1PROD with RULES
70138 Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Rules and Regulations 

qualify for a credit, after the end of the 

program period, to their designated 

Centralized Account Payment System 

(CAPS) permit imprint account, as 

follows: 

a. The letter-size pieces for which the 

credit is claimed must weigh more than 

1 ounce but no more than 1.2 ounces 

and be mailed under all standards in 

7.2. 

b. Participants that meet or exceed 

their threshold volume receive a credit 

in the amount of the postage paid for the 

second ounce for each eligible piece 

meeting all the conditions in 7.2 that are 

mailed during the 2011 program year 

from January 2, 2011 through December 

31, 2011. 

* * * * * 

240 Standard Mail 

243 Prices and Eligibility 

1.0 Prices and Fees for Standard Mail 

* * * * * 

[Delete section 1.7 in its entirety to 

remove reference to the 2009 Saturation 

Mail Volume Incentive Program.] 

* * * * * 

3.0 Basic Standards for Standard Mail 

Letters 

* * * * * 

3.9 Move Update Standards 

* * * * * 

3.9.4 Basis for Move Update 

Assessment Charges 

[Revise the introductory text of 3.9.4 

to read as follows:] 

Mailings are subject to a Move Update 

assessment charge if more than 25 

percent of addresses with a change-ofaddress (COA) are not updated, based 

on the error rate found in USPS 

sampling at acceptance during 

Performance-Based Verification. 

Specifically, mailings for which the 

sample contains greater than 25 percent 

failed COAs out of the total COAs in the 

sample are subject to additional postage 

charges as follows: 

[Revise item 3.9.4a as follows:] 

a. The percentage of the mailing 

paying the charge is based on the 

percentage of failed pieces above 25 

percent (%). 

* * * * * 

[Revise item 3.9.4c as follows:] 

c. As an example, if 35% of COAs in 

the sample are not updated, then the 

charge is applied to 10% (=35%¥25%) 

of the total mailing. 

* * * * * 

[Add new section 8.0 to read as 

follows:] 

8.0 Incentive Programs for Standard 

Mail Letters 

8.1 General Description 

Incentive programs for Standard Mail 

letters are designed to encourage mail 

volume growth and retention. 

8.2 Saturation and High Density 

Incentive Program 

The Saturation and High Density 

Incentive Program provides postage 

credits for qualified mail owners of 

Standard Mail, or Nonprofit Standard 

Mail, letters and flats mailed at 

saturation and high density carrier route 

prices that can document mail volumes 

exceeding their individual USPSrecorded threshold level, during the 

2011 program period, from January 2, 

2011 through December 31, 2011. 

Participating mail owners documenting 

volumes above their threshold level 

receive a credit, for each piece 

exceeding their threshold level, to a 

designated permit imprint advance 

deposit account or Centralized Account 

Payment System (CAPS) account after 

the end of the program period. Refer to 

343.8.2 for program details. 

* * * * * 

300 Commercial Mail Flats 

* * * * * 

330 First-Class Mail 

333 Prices and Eligibility 

* * * * * 

3.0 Eligibility Standards for FirstClass Mail Flats 

* * * * * 

3.5 Move Update Standard 

* * * * * 

3.5.4 Basis for Move Update 

Assessment Charge 

[Revise text of 3.5.4 to read as 

follows:] 

Mailings are subject to a Move Update 

assessment charge if more than 25 

percent of addresses with a change-ofaddress (COA) are not updated, based 

on the error rate found in USPS 

sampling at acceptance during 

Performance-Based Verification. 

Specifically, mailings for which the 

sample contains greater than 25 percent 

failed COAs out of the total COAs in the 

sample are subject to additional postage 

charges as follows: 

a. The percentage of the mailing 

paying the charge is based on the 

percentage of failed pieces above 25 

percent (%). 

b. Each of the assessed pieces is 

subject to the $0.07 per piece charge. 

c. As an example, if 35% of COAs in 

the sample are not updated, then the 

charge is applied to 10% (= 35%–25%) 

of the total mailing. 

d. Mailings for which the sample has 

five or fewer pieces that were not 

updated for a COA are not subject to the 

assessment, regardless of the failure 

percentage. 

* * * * * 

340 Standard Mail 

343 Prices and Eligibility 

1.0 Prices and Fees for Standard Mail 

* * * * * 

[Delete section 1.6 in its entirety to 

remove reference to the 2009 Saturation 

Mail Volume Incentive Program.] 

* * * * * 

3.0 Basic Standards for Standard Mail 

Flats 

* * * * * 

3.9 Move Update Standards 

* * * * * 

[Revise title and text of 3.9.4 to read 

as follows:] 

3.9.4 Basis for Move Update 

Assessment Charges 

Mailings are subject to a Move Update 

assessment charge if more than 25 

percent of addresses with a change-ofaddress (COA) are not updated, based 

on the error rate found in USPS 

sampling at acceptance during 

Performance-Based Verification. 

Specifically, mailings for which the 

sample contains greater than 25 percent 

failed COAs out of the total COAs in the 

sample are subject to additional postage 

charges as follows: 

a. The percentage of the mailing 

paying the charge is based on the 

percentage of failed pieces above 25 

percent (%). 

b. Each of the assessed pieces is 

subject to the $0.07 per piece charge. 

c. As an example, if 35% of COAs in 

the sample are not updated, then the 

charge is applied to 10% (= 35%–25%) 

of the total mailing. 

d. Mailings for which the sample has 

five or fewer pieces that were not 

updated for a COA are not subject to the 

assessment, regardless of the failure 

percentage. 

* * * * * 

[Add new 8.0 as follows:] 

8.0 Incentive Programs for Standard 

Mail Flats 

8.1 General Description 

Incentive programs for Standard Mail 

flats are designed to encourage mail 

volume growth and retention. 


erowe on DSK5CLS3C1PROD with RULES
Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Rules and Regulations 70139 

8.2 Saturation and High Density 

Incentive Program 

8.2.1 Program Description 

The Saturation and High Density 

Incentive Program provides postage 

credits for qualified mail owners of 

Standard Mail, or Nonprofit Standard 

Mail, letters and flats (complete 

mailpieces) mailed at saturation and 

high density carrier route prices that can 

document mail volumes exceeding their 

individual USPS-recorded threshold 

level, during the 2011 program period, 

from January 2, 2011 through December 

31, 2011. Participating mail owners 

documenting volumes above their 

threshold level receive a credit, for each 

piece exceeding their threshold level, to 

a single designated permit imprint 

advance deposit account or Centralized 

Account Payment System (CAPS) 

account after the end of the program 

period. Applicants are required to 

review and certify the accuracy of the 

data used by the USPS to calculate their 

threshold level(s); and, upon request, 

may be required to provide 

documentation of their mailing activity 

in the 2010 calendar year, the 2009– 

2010 eligibility period and during the 

program period. 

8.2.2 Eligibility Standards 

Mail service providers are not eligible 

to participate in this program. Mail 

owners are eligible for the program as 

follows: 

a. Mailers must be the owner of a 

permit imprint advance deposit 

account, precanceled stamp permit, or 

postage meter permit at a USPS facility 

having PostalOne! capability; or the 

owner of qualifying mailpiece volume 

entered through the account(s) of a mail 

service provider at a USPS facility 

having PostalOne! capability, when 

adequate documentation demonstrates 

that the applicant is the owner of the 

mailpieces. 

b. Applicants must electronically 

submit postage statements and mailing 

documentation to the Postal One! 

system. Applicants participating within 

a defined market area(s) must 

electronically submit postage statements 

and mailing documentation using 

Mail.dat or Mail.XML. All other 

applicants may optionally submit 

postage statements via Postal Wizard. 

c. Only the volume of the mail owner, 

defined as the entity paying for the 

postage, is eligible within the program 

period. 

d. Mail service providers and 

customers supplying inserts, enclosures 

or other components included in the 

mailings of another mailer are not 

eligible to participate in this program. 

e. For either the saturation or high 

density incentives, applicants must 

demonstrate a combined minimum of 

six saturation or high density mailings 

of Standard Mail letters and/or flats 

within the qualification period of 

October 1, 2009 to September 30, 2010. 

f. Applicants meeting the eligibility 

criteria in 8.2.2a through 8.2.2d may 

participate within both the saturation 

and high density price categories 

simultaneously. 

g. Applicants who participate only 

within defined market areas must meet 

the eligibility criteria independently for 

each selected SCF service area or 

selected metropolitan target market. 

h. Mailers participating in the 2011 

Saturation and High Density Incentive 

Program are not eligible for concurrent 

participation in any other USPSsponsored volume incentive program 

that includes Standard Mail pieces in 

the saturation or high density price 

categories. 

8.2.3 Program Threshold Level 

Threshold level figures are calculated 

independently for each applicant as 

follows: 

a. Thresholds are set at 5 percent (5%) 

above (or 105% of) the volume, within 

the participant-selected growth area and 

price category, of Standard Mail or 

Nonprofit Standard Mail saturation and 

high density letters and flats recorded in 

the 2010 calendar year. 

b. Applicants participating in both the 

saturation and high density price 

categories must exceed the combined 

thresholds of both categories before 

qualifying for an incentive payment in 

either category. 

8.2.4 Application 

Mail owners identified by the Postal 

Service as being eligible to participate in 

the program will be sent an invitation 

letter after November 1, 2010. Mail 

owners may apply for the program as 

follows: 

a. The invitation letter directs mail 

owners to apply for the program online 

at http://www.usps.com/SaturationHD 

no later than December 31, 2010. 

b. Applicants participating with 

Standard Mail saturation and/or high 

density mail volume destinating only 

within defined market areas must select 

the sectional center facility (SCF) 

service areas for participation in the 

program, up to a maximum of 20 

individual SCF areas or up to five 

metropolitan target markets (consisting 

of multiple contiguous SCFs). The USPS 

must approve all applicant-selected 

market areas prior to acceptance into the 

program. 

c. Mail owners completing the online 

application process receive an 

electronic response from the USPS that 

includes: 

1. An individual volume threshold 

report, with the applicant’s recorded 

saturation and/or high density volume 

for the 2010 calendar year. 

2. A certification letter. 

3. A threshold inquiry form. 

d. Applicants agreeing with their 

threshold volume(s) can sign the 

certification letter and return a copy via 

email to: 

SaturationHDIncentive@usps.gov or 

mail hardcopy to Saturation Incentive 

Program Office, 475 L’Enfant Plaza SW., 

Room 5500, Washington, DC 20260– 

5500, to be registered for the program. 

e. Applicants not agreeing with any 

portion of their USPS-calculated 

threshold(s) must complete the 

threshold inquiry form and return it 

along with supporting evidence, via 

email, or mail hardcopy to Saturation 

Incentive Program Office, 475 L’Enfant 

Plaza SW., Room 5500, Washington, DC 

20260–5500, no later than March 15, 

2011. 

f. Mail owners wishing to participate 

in the program, but who were not 

notified by letter, may request a review 

of their eligibility by contacting the 

USPS at Saturation/ 

HDIncentive@usps.gov or submitting an 

online application at www.usps.com/ 

SaturationHD no later than December 

31, 2010. 

8.2.5 Program Participation 

Mail owners may participate in the 

program with qualifying letters and flats 

mailpieces mailed at saturation or high 

density prices as follows: 

a. Standard Mail, or Nonprofit 

Standard Mail, mailpieces mailed by the 

participant through the participant’s 

own permit imprint advance account, 

precanceled stamp permit(s), or postage 

meter permit(s); 

b. Standard Mail, or Nonprofit 

Standard Mail, mailpieces prepared by 

a mail service provider, when entered 

through a permit owned by the 

participant; 

c. Standard Mail, or Nonprofit 

Standard Mail, mailpieces mailed 

through a mail service provider’s 

permit, only when the pieces can be 

identified as being prepared for the 

participant and when the applicant’s 

prior mailing activity through the mail 

service provider’s permit can be 

validated. 

d. Fluctuations in mailing activity 

resulting from the merger or acquisition 

of one or more program participants, 

prior or subsequent to the beginning of 

the program period, are subject to 


erowe on DSK5CLS3C1PROD with RULES
70140 Federal Register / Vol. 75, No. 221 / Wednesday, November 17, 2010 / Rules and Regulations 

review and approval by the USPS for 

inclusion in reported volume. 

8.2.6 Incentive Program Credits 

Approved participants demonstrating 

an increase in Standard Mail, or 

Nonprofit Standard Mail, saturation and 

high density letters and flats volume 

above their threshold level qualify for a 

credit to a single designated permit 

imprint advance deposit account or 

CAPS account as follows: 

a. The total postage paid for Standard 

Mail, or Nonprofit Standard Mail, letters 

and flats mailed at saturation and high 

density prices, recorded during the 

program is identified for each 

participant. 

b. The total postage paid during the 

program period is divided by the total 

number of recorded mailpieces to 

determine the average price per piece 

for the program period. 

c. Participants receive a credit, based 

on the percentages of the average price 

per piece, for the number of mailpieces 

of incremental volume above their 

threshold level, recorded during the 

program period, as follows: 

1. Saturation letters and flats: 22 

percent for Standard Mail, 8 percent for 

Nonprofit Standard Mail pieces. 

2. High density letters and flats: 13 

percent for Standard Mail, 8 percent for 

Nonprofit Standard Mail pieces. 

* * * * * 

400 Commercial Parcels 

* * * * * 

430 First-Class Mail 

433 Prices and Eligibility 

* * * * * 

3.0 Basic Standards for First-Class 

Mail Parcels 

* * * * * 

3.5 Move Update Standards 

* * * * * 

3.5.4 Basis for Move Update 

Assessment Charge 

[Revise text of 3.5.4 to read as 

follows:] 

Mailings are subject to a Move Update 

assessment charge if more than 25 

percent of addresses with a change-ofaddress (COA) are not updated, based 

on the error rate found in USPS 

sampling at acceptance during 

Performance-Based Verification. 

Specifically, mailings for which the 

sample contains greater than 25 percent 

failed COAs out of the total COAs in the 

sample are subject to additional postage 

charges as follows: 

a. The percentage of the mailing 

paying the charge is based on the 

percentage of failed pieces above 25 

percent (%). 

b. Each of the assessed pieces is 

subject to the $0.07 per piece charge. 

c. As an example, if 35% of COAs in 

the sample are not updated, then the 

charge is applied to 10% (=35%¥25%) 

of the total mailing. 

d. Mailings for which the sample has 

five or fewer pieces that were not 

updated for a COA are not subject to the 

assessment, regardless of the failure 

percentage. 

* * * * * 

440 Standard Mail 

443 Prices and Eligibility 

* * * * * 

3.0 Basic Standards for Standard Mail 

Parcels 

* * * * * 

3.5 Move Update Standards 

* * * * * 

[Revise title and text of 3.5.4 to read 

as follows:] 

3.5.4 Basis for Move Update 

Assessment Charges 

Mailings are subject to a Move Update 

assessment charge if more than 25 

percent of addresses with a change-ofaddress (COA) are not updated, based 

on the error rate found in USPS 

sampling at acceptance during 

Performance-Based Verification. 

Specifically, mailings for which the 

sample contains greater than 25 percent 

failed COAs out of the total COAs in the 

sample are subject to additional postage 

charges as follows: 

a. The percentage of the mailing 

paying the charge is based on the 

percentage of failed pieces above 25 

percent (%). 

b. Each of the assessed pieces is 

subject to the $0.07 per piece charge. 

c. As an example, if 35% of COAs in 

the sample are not updated, then the 

charge is applied to 10% (=35%¥25%) 

of the total mailing. 

d. Mailings for which the sample has 

five or fewer pieces that were not 

updated for a COA are not subject to the 

assessment, regardless of the failure 

percentage. 

* * * * * 

We will publish an appropriate 

amendment to 39 CFR Part 111 to reflect 

these changes. 

Stanley F. Mires, 

Chief Counsel, Legislative. 

[FR Doc. 2010–28412 Filed 11–16–10; 8:45 am] 

BILLING CODE 7710–12–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R02–OAR–2010–0321, FRL–9212–1] 

Approval and Promulgation of 

Implementation Plans; New York 

Prevention of Significant Deterioration 

of Air Quality and Nonattainment New 

Source Review 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is taking final action to 

grant a partial approval to revisions of 

the New York State Implementation 

Plan (SIP) submitted by the New York 

State Department of Environmental 

Conservation on March 3, 2009. As a 

result of this action, New York will 

implement its own Prevention of 

Significant Deterioration of Air Quality 

(PSD) and Nonattainment New Source 

Review (NNSR) State regulations. These 

revisions create a new New York State 

PSD regulation program and modify the 

existing New York State NNSR 

regulations in the SIP. These revisions 

also address changes mandated by the 

revised Federal New Source Review 

(NSR) regulations, referred to as the 

‘‘2002 NSR Reform Rules.’’ 

In this action, EPA is taking final 

action to approve these revisions by 

issuing a partial approval, with the 

caveat that EPA is taking no action at 

this time on the PSD permitting 

threshold provisions to the extent that 

those provisions may require permits for 

sources of greenhouse gas (GHG) 

emissions that equal or exceed the 100/ 

250 tons per year (tpy) GHG levels but 

are less than the thresholds identified in 

EPA’s final Tailoring Rule; and the PSD 

significance level provisions of New 

York’s rule to the extent that those 

provisions may treat as significant GHG 

emissions increases that are less than 

the thresholds identified in the final 

Tailoring Rule. The PSD applicability 

thresholds below the Tailoring Rule will 

be acted on, as necessary, as part of an 

EPA national rulemaking or in a 

separate EPA Region 2 rulemaking. 

DATES: Effective Date: This rule is 

effective on December 17, 2010. 

ADDRESSES: EPA has established a 

docket for this action under Docket ID 

No. EPA–R02–OAR–2010–0321. All 

documents in the docket are listed on 

the http://www.regulations.gov Web 

site. All docket materials are available 

either electronically through http:// 

www.regulations.gov or in hard copy at 


erowe on DSK5CLS3C1PROD with RULES