[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 [www.gpo.gov]
[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 http://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Proposal 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.

[[Page 62024]]

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 http://www.prc.gov. 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]
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