Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / Rules and Regulations 45325 

transit through or anchoring within this 

safety zone is prohibited unless 

authorized by the Captain of the Port 

San Diego or his designated 

representative. 

(2) Mariners desiring to enter or 

operate in the safety zone may request 

authorization to do so from the Patrol 

Commander (PATCOM). The PATCOM 

may be contacted on VHF–FM Channel 

16. 

(3) All persons and vessels must 

comply with the instructions of the 

Coast Guard Captain of the Port or his 

designated representative. 

(4) Upon being hailed by U.S. Coast 

Guard patrol personnel by siren, radio, 

flashing light, or other means, the 

operator of a vessel must proceed as 

directed. 

(5) The Coast Guard may be assisted 

by other Federal, State, or local 

agencies. 

Dated: July 30, 2009. 

DL LeBlanc, 

Commander, U.S. Coast Guard, Acting 

Captain of the Port Sector San Diego. 

[FR Doc. E9–21023 Filed 9–1–09; 8:45 am] 

BILLING CODE 4910–15–P 

POSTAL SERVICE 

39 CFR Part 111 

First-Class Mail Incentive Program 

AGENCY: Postal ServiceTM. 

ACTION: Final rule. 

SUMMARY: The Postal Service is revising 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM®), to add section 709.3 which 

introduces new standards for a special 

volume incentive program for mailers of 

commercial (automation and/or Presort) 

First-Class Mail® cards, letters and/or 

flats with mail volume exceeding their 

individual USPS®-determined threshold 

levels. The program period will be from 

October 1, 2009 through December 31, 

2009. 

DATES: Effective Date: October 1, 2009. 

FOR FURTHER INFORMATION CONTACT: NiiKwashie Aryeetey at 202–268–7442 or 

Kevin Gunther at 202–268–7208. 

SUPPLEMENTARY INFORMATION: The Postal 

Service is implementing a volume 

incentive program for qualified mailers 

of commercial (automation and/or 

Presort) First-Class Mail cards, letters 

and/or flats, for volume mailed during 

the program period, above their USPSdetermined threshold level. 

To participate, mailers must be the 

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

imprint advance deposit account(s) or 

the owner of qualifying mail volume 

entered through the permit imprint 

advance deposit account of a mail 

service provider. Qualifying mail 

owners must be able to demonstrate 

volume of at least five-hundred 

thousand (500,000) commercial FirstClass Mail cards, letters and/or flats 

pieces within the period of October 1, 

2007 to December 31, 2007 and fivehundred thousand (500,000) 

commercial First-Class Mail cards, 

letters and/or flats pieces within the 

period of October 1, 2008 to December 

31, 2008, for a permit imprint advance 

deposit account(s), precanceled stamp 

permit(s), postage meter permit(s), or by 

a combination of these methods. 

Applicants may also qualify for the 

program with volume mailed through an 

account(s) owned by a mail service 

provider, when adequate documentation 

is provided that specifies the applicant 

is the owner of the mail. Those mail 

owners eligible to participate in the 

program will be notified of their 

eligibility, in writing, on or before 

October 15, 2009. Mail owners wishing 

to participate in the program, who 

believe they meet the eligibility 

standards under DMM 709.3.2 and were 

not notified by letter, may request a 

review of their eligibility by contacting 

the USPS at 

firstclassmailincentive@usps.gov. 

As part of the application process, 

participating mail owners will be 

required to provide historical data 

demonstrating their commercial FirstClass Mail cards, letters and/or flats 

volumes mailed within the periods of 

October 1, 2007 through December 31, 

2007, October 1, 2008 through 

December 31, 2008, September 2008, 

and January 2009. 

Participating mail owners 

demonstrating commercial First-Class 

Mail cards, letters or flats volume above 

their established threshold level will 

receive a credit following the close of 

the program period. Thresholds will be 

calculated independently for each 

applicant, by comparing the volume of 

commercial First-Class Mail cards, 

letters and/or flats mailed within the 

period from October 1, 2007 through 

December 31, 2007 to the volume 

mailed within the period of October 1, 

2008 through December 31, 2008. The 

change in recorded volume between 

these two periods will represent the 

applicant’s volume trend. Trends that 

show growth for the period of October 

1, 2008 to December 31, 2008, versus 

that shown in the same period of the 

prior year, will appear as a ratio above 

1.0 (expressed here in a decimal format). 

Trends that show a volume decline for 

the period of October 1, 2008 to 

December 31, 2008 will appear as a ratio 

below 1.0. The applicable ratio will then 

be applied to the volume of commercial 

First-Class Mail cards, letters and flats 

mailed within the period of October 1, 

2008 to December 31, 2008. This result 

represents the USPS-determined 

threshold level for an individual 

applicant. 

Mail owners (applicants) are 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 through a mail service 

provider’s permit, may also qualify for 

the program, but only if adequate 

documentation identifies the mail as 

being prepared on behalf of the 

applicant and demonstrates the 

applicant’s prior mailing activity. Mail 

service providers are not eligible to 

participate in the First-Class Mail 

Incentive program. 

Approved program participants, 

demonstrating an increase in their total 

commercial First-Class Mail cards, 

letters and/or flats volume above their 

approved threshold level will qualify for 

a credit to a designated permit imprint 

advance account, Centralized Account 

Payment System (CAPS) account or paid 

through another approved method. The 

total postage attributable to commercial 

First-Class Mail cards, 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 receive a credit in 

the amount of 20 percent of the average 

price per piece for the total number of 

mailpieces of the incremental volume 

above their approved threshold level as 

recorded during the program period. 

The First-Class Mail Incentive 

program encourages mailers to generate 

new mail volume. As a deterrent to 

mailers shifting previously planned 

volume into the program to obtain 

incentive credits, the mailing activity of 

participating mail owners will be 

monitored in the calendar months prior 

to and following the end of the program 

as follows: 

• The participant’s previously 

determined volume trend will be 

applied to their volume of commercial 

First-Class Mail cards, letters and flats 

mailed within the month of September 

2008 and January 2009, to determine the 

participant’s September 2009 and 

January 2010 expected volume. 

• Each participant’s actual September 

2009 and January 2010 volume will then 

be compared to their respective 

September 2009 and January 2010 

expected volume. 


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45326 Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / Rules and Regulations 

• Participants failing to meet (or 

exceed) either of their expected volume 

thresholds will have any demonstrated 

shortfall in volume deducted from the 

number of mailpieces eligible for an 

incentive credit within the program. 

• Participants demonstrating a 

shortfall in volume to either their 

September 2009 or January 2010 

expected volumes will have that 

shortfall deducted from the number of 

mailpieces eligible for an incentive 

credit within the program regardless of 

any surplus demonstrated in the 

expected volume threshold of the other 

month. 

Additionally, as part of the program 

administration, the Postal Service will 

require each program participant to 

certify the data used to calculate the 

volume trends, threshold levels and 

their September 2009 and January 2010 

expected volumes. This certification 

requirement will be similar to what is 

currently used on PS Form 3600, 

Postage Statement—First-Class Mail and 

Priority Mail. The certification 

requirement for this initiative is aimed 

at ensuring that the data used by the 

Postal Service to calculate the 

applicable volume trend, threshold level 

and September 2009 and January 2010 

expected volume for each qualifying 

mailer is accurate. 

In accordance with the Postal 

Accountability and Enhancement Act, 

on August 11, 2009, the Postal Service 

filed a Notice with the Postal Regulatory 

Commission (PRC) regarding the FirstClass Mail Incentive program. 

Regulatory review will take 45 days 

from that date. 

The Postal Service adopts the 

following changes to Mailing Standards 

of the United States Postal Service, 

Domestic Mail Manual (DMM), 

incorporated by reference in the Code of 

Federal Regulations. See 39 CFR 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); 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: 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM) 

* * * * * 

700 Special Standards 

* * * * * 

709 Experimental and Temporary 

Classifications 

* * * * * 

[Add a new section 709.3.0 to introduce 

new standards for a volume incentive 

program for commercial First-Class Mail 

cards, letters and flats as follows:] 

3.0 First-Class Mail Incentive Program 

3.1 Program Description 

The First-Class Mail Incentive 

program provides volume pricing for 

qualified mail owners of commercial 

(automation and/or Presort) First-Class 

Mail cards, letters and/or flats who are 

able to document mail volume 

exceeding their individual USPSdetermined threshold level during the 

October 1, 2009 through December 31, 

2009 program period. Participating mail 

owners documenting volumes above 

their established threshold level will 

receive a 20% credit, for each piece 

exceeding their individual USPSdetermined threshold level, to a 

designated permit imprint advance 

deposit account, Centralized Account 

Payment System (CAPS) account, or 

provided through another approved 

method at the conclusion of the program 

period. Program participants must 

review and certify the accuracy of the 

data used by the USPS to calculate their 

individual volume trend, threshold 

level and their September 2009 and 

January 2010 expected volumes. 

3.2 Eligibility Standards 

Mail owners are considered eligible 

for the program as follows: 

a. Applicants must be able to 

document, in aggregate, volume of at 

least five-hundred thousand (500,000) 

pieces of commercial First-Class Mail 

cards, letters and/or flats for each of the 

October 1, 2007 to December 31, 2007 

and October 1, 2008 to December 31, 

2008 time periods 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 within a mail service 

provider’s permit, which can be 

identified as being prepared on behalf of 

the applicant. 

b. Mail service providers are not 

eligible to participate in this program. 

3.3 Program Threshold Level 

Threshold level figures will be 

calculated independently for each 

applicant as follows: 

a. Total documented volume of 

commercial First-Class Mail cards, 

letters and/or flats recorded within the 

period from October 1, 2007 to 

December 31, 2007 will be compared to 

that recorded within the period of 

October 1, 2008 to December 31, 2008. 

b. The change in recorded mailing 

volume between these two periods will 

represent the applicant’s volume trend. 

Trends that show growth for the period 

of October 1, 2008 to December 31, 

2008, versus that shown in the same 

period of the prior year, will appear as 

a ratio above 1.0 (expressed here in a 

decimal format). A volume decline from 

October 1, 2008 to December 31, 2008 

will appear as a ratio below 1.0. 

c. The applicable ratio will then be 

applied to the volume of commercial 

First-Class Mail cards, letters and flats, 

for all of the applicant’s mailings, or 

other qualifying volume recorded 

through the permit of a mail service 

provider (MSP), mailed during the 

period from October 1, 2008 through 

December 31, 2008. 

d. The product of the calculation in 

3.2c will represent the USPSdetermined threshold level for the 

selected applicant. 

3.4 Application 

Mail owners meeting the eligibility 

criteria will be notified of their 

eligibility for the program and advised 

of the application process and 

requirements. Mail owners interested in 

participating may apply at 

www.usps.com/firstclassmailincentive. 

Eligible applicants must apply for the 

program no later than November 1, 

2009. Mailers meeting the eligibility 

standards under 709.3.2, and not 

notified by letter, may request a review 

of their eligibility by contacting the 

USPS via email at 

firstclassmailincentive@usps.gov. Mail 

owners requesting review of their 

program eligibility must submit their 

request to the USPS no later than 

November 1, 2009. Following 

registration, mailers will be required to 

provide historical data demonstrating 

their commercial First-Class Mail cards, 

letters and/or flats volumes mailed 

within each of the periods of October 1, 

2007 to December 31, 2007, October 1, 

2008 to December 31, 2008, September 

2008 and January 2009. The USPS will 

review the data provided and applicants 

will be notified of their approval for 


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Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / Rules and Regulations 45327 

1Request of the United States Postal Service to 

Add Priority Mail Contract 17 to Competitive 

Product List and Notice of Filing (Under Seal) of 

Contract and Supporting Data, July 24, 2009 

(Request). 

2Attachment A to the Request. 

3Attachment B to the Request. 

4Attachment C to the Request. 

5Attachment D to the Request. 

participation in the program, their 

approved threshold level, and their 

revised threshold level (when 

applicable). Mailers wishing to dispute 

their threshold level will be provided 

with instructions on the process. 

3.5 Program Participation 

Mail owners may participate in the 

program with qualifying volume as 

follows: 

a. Commercial First-Class Mail cards, 

letters and/or flats volume mailed by the 

participant through the participant’s 

own permit imprint advance account, 

precanceled stamp permit(s), or postage 

meter permit(s); 

b. Commercial First-Class Mail cards, 

letters and/or flats volume prepared by 

a mail service provider, when entered 

through a permit owned by the 

participant; 

c. Commercial First-Class Mail cards, 

letters and/or flats pieces 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. 

3.6 Incentive Program Credits 

Approved participants demonstrating 

an increase in commercial First-Class 

Mail cards, letters and flats volume 

above their approved threshold level 

qualify for a credit to their designated 

permit imprint advance deposit 

account, Centralized Account Payment 

System (CAPS) account, or provided 

through another approved method as 

follows: 

a. The total postage paid for 

commercial First-Class Mail cards, 

letters and flats recorded during the 

program will be identified for each 

participant. 

b. The total postage paid during the 

program period will be divided by the 

total number of recorded pieces to 

generate the average price per piece for 

the program period. 

c. Participants will receive a credit in 

the amount of 20 percent of the average 

price per piece applied to the total 

number of mailpieces, for the 

incremental volume above their 

approved threshold level, recorded 

during the program period. 

3.7 Mailing Activity Review 

Mailing activity by participants will 

be reviewed in the calendar months 

preceding and following the end of the 

program. The qualifying volume 

recorded for participants may be 

adjusted in accordance with the 

following: 

a. The participant’s previously 

determined volume trend will be 

applied to the volume of commercial 

First-Class Mail cards, letters and flats 

mailed by the participant within the 

months of September 2008 and January 

2009, to determine the program 

participant’s September 2009 and 

January 2010 expected volumes. 

b. The participant’s actual September 

2009 and January 2010 volumes will 

then be compared to their September 

2009 and January 2010 expected 

volumes. 

c. Participants failing to meet their 

September 2009 and/or January 2010 

expected volume will have any shortfall 

in volume deducted from the number of 

mailpieces eligible for an incentive 

credit within the program. 

d. Participants demonstrating a 

shortfall in volume to either their 

September 2009 or January 2010 

expected volumes will have that 

shortfall deducted from the number of 

mailpieces eligible for an incentive 

credit within the program regardless of 

any surplus demonstrated in the 

expected volume threshold of the other 

month. 

* * * * * 

Neva R. Watson, 

Attorney, Legislative. 

[FR Doc. E9–21072 Filed 9–1–09; 8:45 am] 

BILLING CODE 7710–12–P 

POSTAL REGULATORY COMMISSION 

39 CFR Part 3020 

[Docket Nos. MC2009–37 and CP2009–56; 

Order No. 278] 

New Postal Product 

AGENCY: Postal Regulatory Commission. 

ACTION: Final rule. 

SUMMARY: The Commission is adding 

the Priority Mail Contract 17 to the 

Competitive Product List. This action is 

consistent with changes in a recent law 

governing postal operations. 

Republication of the lists of market 

dominant and competitive products is 

also consistent with new requirements 

in the law. 

DATES: Effective September 2, 2009 and 

is applicable beginning August 14, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

at 202–789–6820 or 

stephen.sharfman@prc.gov. 

SUPPLEMENTARY INFORMATION: Regulatory 

History, 74 FR 39123 (August 5, 2009). 

I. Introduction 

II. Background 

III. Comments 

IV. Commission Analysis 

V. Ordering Paragraphs 

I. Introduction 

The Postal Service seeks to add a new 

product identified as Priority Mail 

Contract 17 to the Competitive Product 

List. For the reasons discussed below, 

the Commission approves the Request. 

II. Background 

On July 24, 2009, the Postal Service 

filed a formal request pursuant to 39 

U.S.C. 3642 and 39 CFR 3020.30 et seq. 

to add Priority Mail Contract 17 to the 

Competitive Product List.1 The Postal 

Service asserts that the Priority Mail 

Contract 17 product is a competitive 

product ‘‘not of general applicability’’ 

within the meaning of 39 U.S.C. 

3632(b)(3). This Request has been 

assigned Docket No. MC2009–37. 

The Postal Service 

contemporaneously filed a contract 

related to the proposed new product 

pursuant to 39 U.S.C. 3632(b)(3) and 39 

CFR 3015.5. The contract has been 

assigned Docket No. CP2009–56. 

In support of its Request, the Postal 

Service filed the following materials: (1) 

A redacted version of the contract 

which, among other things, provides 

that the contract will expire 3 years 

from the effective date, which is 

proposed to be the day that the 

Commission issues all regulatory 

approvals; 2 (2) requested changes in the 

Mail Classification Schedule product 

list; 3 (3) a Statement of Supporting 

Justification as required by 39 CFR 

3020.32; 4 and (4) certification of 

compliance with 39 U.S.C. 3633(a).5

The Postal Service also references 

Governors’ Decision 09–6, filed in 

Docket No. MC2009–25, as 

authorization of the new product. 

Notice at 1. 

In the Statement of Supporting 

Justification, Mary Prince Anderson, 

Acting Manager, Sales and 

Communications, Expedited Shipping, 

asserts that the service to be provided 

under the contract will cover its 

attributable costs, make a positive 

contribution to coverage of institutional 

costs, and will increase contribution 

toward the requisite 5.5 percent of the 

Postal Service’s total institutional costs. 

Request, Attachment C, at 1. W. Ashley 


erowe on DSK5CLS3C1PROD with RULES