applicability of proposed subpart I. Proposed § 3010.261 sets forth the upper and lower limits for passthroughs applicable to each class. Proposed § 3010.262 provides for a grace period to bring noncompliant passthroughs (existing and new) into compliance with the applicable band. Proposed § 3010.262 also requires the Postal Service to submit a plan to bring the noncompliant passthroughs into compliance with the applicable band. To conform with this proposed change, the Commission proposes to delete existing § 3010.12(b)(6). To reflect the deletion of § 3010.12(b)(6), the Commission also proposes a conforming deletion in § 3050.20(c). Proposed § 3010.123(f) retains existing § 3010.12(b)(5)’s requirements for the schedule of workshare discounts. Proposed § 3010.123(g) retains existing § 3010.12(c)’s requirements pertaining to the contents of a Postal Service’s request to review a notice of rate adjustment that establishes a new workshare discount. Conclusion The proposal to require that workshare discount passthroughs conform to the applicable bands, subject to a 3-year grace period, is necessary to achieve Objective 1. Workshare discounts set substantially above or below avoided costs send inefficient pricing signals and are inconsistent with ECP. Such discounts contribute to the system having not achieved efficient prices, which may have contributed to the Postal Service’s poor financial health by disrupting incentives for the Postal Service to right size its network and for mailers to enter volume that best conforms to the network. Proposed subpart I requires the Postal Service to gradually phase out these problematic practices and set more efficient prices. This proposed approach will also allow for continued pricing flexibility for the Postal Service.
(1) Mail volumes sent at rates under a negotiated service agreement or a rate incentive that is not a rate of general applicability are to be included in the calculation of percentage change in rates under this section as though they paid the appropriate rates of general applicability. Where it is impractical to identify the rates of general applicability (e.g., because unique rate categories are created for a mailer), the volumes associated with the mail sent under the terms of the negotiated service agreement or the rate incentive that is not a rate of general applicability shall be excluded from the calculation of percentage change in rates. (2) The Postal Service shall identify and explain all assumptions it makes with respect to the treatment of negotiated service agreements and rate incentives that are not rates of general applicability in the calculation of the percentage change in rates and provide the rationale for its assumptions. § 3010.129 Exceptions for de minimis rate increases. (a) The Postal Service may request review of a de minimis rate increase without immediately calculating the maximum rate adjustment authority or banking unused rate adjustment authority. For this exception to apply, requests to review de minimis rate adjustments must be filed separately from any other request to adjust rates. (b) Rate adjustments resulting in rate increases are de minimis if: (1) For each affected class, the rate increases do not result in the percentage change in rates for the class equaling or exceeding 0.001 percent; and (2) For each affected class, the sum of all rate increases included in de minimis rate increases since the most recent rate adjustment resulting in a rate increase, or the
LIST OF COMMENTERS AND COMMENTS Commenter Citation Citation Short Form Alliance of Nonprofit Mailers, Association for Postal Commerce, and MPA—Association of Magazine Media (ANM et al.) Comments of Alliance of Nonprofit Mailers, Association for Postal Commerce, and MPA—The Association of Magazine March 20, 2017 ANM et al. Comments Alliance for Retired Americans; Catholics in Alliance for the Common Good; Center for Community Change Action; Center for Media and Democracy’s PR Watch; Center for Study of Responsive Law; Consumer Action; Farm Aid; In the Public Interest; Hightower Lowdown; National Coalition of Black Civic Participation; National Organization for Women; New Progressive Alliance; People Demanding Action; Vote Vets Action Fund (ARA) Comments of the Alliance for Retired Americans; Catholics in Alliance for the Common Good; Center for Community Change Action; Center for and Democracy’s PR Watch; Center for Study of Responsive Law; Consumer Action; Farm Aid; In the Public Interest; Hightower Lowdown; National Coalition of Black Civic Participation; National Organization for Women; New Progressive Alliance; People Demanding Action; Vote Vets Action Fund, March 21, 2017 ARA et al. Comments Alzheimer’s Association, Inc. (AA) Comments of Alzheimer’s Association, Inc., March 16, 2017 March 16, 2017 AA Comments Alzheimer’s Association, Inc. (AA) Comments of Alzheimer’s Association, Inc., March 31, 2017 March 31, 2017 AA Comments American Bankers Association (ABA) Comments of American Bankers Association, March 20, 2017 ABA Comments American Catalog Mailers Association (ACMA) Comments of the American Catalog Mailers Association, March 20, 2017 ACMA Comments American Consumer Institute Center for Citizen Research (ACI) Comments of the American Consumer Institute Center for Citizen Research Regarding Docket No. RM2017-3 and Order No. 3673 Submitted to the Postal Regulatory Commission, March 20, 2017 ACI Comments American Forest & Association (AF&PA) Comments of the American Forest & Paper Association, March 20, 2017 AF&PA Comments
American Institute for Cancer Research (AICR) Comments of the American Institute for Cancer Research, 14, 2017 AICR Comments American Lung Association (ALA) Comments of the American Lung Association, March 28, 2017 ALA Comments American Postal Workers (APWU) Comments of the American Postal Workers Union, AFL-CIO, March 20, 2017 APWU Comments American Postal Workers – Local 1459 (APWU) Comments of Carrie Bieberitz, President, APWU Local 1459, March 15, 2017 Bieberitz Comments American Postal Workers Union, – Local 142 (APWU) Comments of Todd Fawcett, President, APWU Greater Northland Area, 16, 2017 Fawcett Comments American Postal Workers Union, – Local 257 (APWU) Comments of Mike Landry, President, APWU Central New York Area, 16, 2017 Landry Comments American Postal Workers Union, – Local 230 (APWU) Comments of Timothy A. Cliche, Craft Director, March 16, 2017 Cliche Comments American Postal Workers – Local 149 (APWU) Comments of Thomas Athanasakos, Assistant Clerk Craft Director, APWU Local 149, March 17, 2017 Athanasakos Comments American Postal Workers Union, – Local 44 (APWU) Comments of Mike Bates, President, APWU Local 44, March 17, 2017 Bates Comments American Postal Workers Union, – Local 89 (APWU) Comments of Nick Casselli, President, APWU Local 89, March 17, 2017 Casselli Comments American Postal Workers Union, – Local 204 (APWU) Comments of George Collins, President, Mississippi Coast Area, March 17, 2017 Collins Comments American Postal Workers Union, – Local 149 (APWU) Comments of Vito Fallacara, Acting Director, NJI-NDC, March 17, 2017 Fallacara Comments
American Postal Workers Union, – Local 44 (APWU) Comments of Bryon Preminger, Legislative Director, Des Moines Area, March 17, 2017 Preminger Comments American Postal Workers Union, – Local 735 (APWU) Comments of VanScyoc, President, Wichita Area, March 20, 2017 VanScyoc Comments American Postal Workers – Local 7139 (APWU) Comments of Devendra Rathore, President, Fox Valley Area, March 20, 2017 Rathore Comments American Postal Workers Union, – Local 44 (APWU) Comments of Mark Sarcone, Member, Des Moines Area, March 20, 2017 Sarcone Comments American Postal Workers – Local 3630 (APWU) Comments of Nannette J. Corley, President, Montgomery County Area, March 20, 2017 Corley Comments American Postal Workers – Local 145 (APWU) Comments of William Whalen, General President, Wilmington Area, March 20, 2017 Whalen Comments American Postal Workers Union, – Local 11 (APWU) Comments of Philip D. Thomas, President, Omaha Area, March 20, 2017 Thomas Comments American Postal Workers Union, – Local 248 (APWU) Comments of Robert F. Oldt, President, APWU 248, March 20, 2017 Oldt Comments American Postal Workers Union, – Local 162 (APWU) Comments of Rufina Pagaduan, National Business Agent, APWU Local 162, March 21, 2017 Pagaduan Comments America’s VetDogs (AVD) Comments of America’s VetDogs, March 27, 2017 AVD Comments Association of Direct Response Fundraising Counsel (ADRFCO) Comments of the Association of Direct Response Fundraising Counsel, et al., March 20, 2017 ADRFCO et al. Comments Catholic Charity Appeal (CCP) Comments of Catholic Charity Appeal, February 27, 2017 CCP Comments
Enlightened Connections, LLC Comments of Enlightened Connections, LLC, March 20, 2017 Enlightened Connections Comments Envelope Manufacturers Association (EMA) Comments of EMA Foundation’s US Mailing Industry Jobs and Revenue Study 2015, February 24, 2017 February 24, 2017 EMA Comments Envelope Manufacturers Association (EMA) A National Research Study Among Mail Decision Makers and on Postal Rate Sensitivity on Demand, March 20, 2017 March 20, 2017 EMA Comments Food for the Poor, Inc. (FFP) Comments of Food for the Poor, Inc., March 6, 2017 FFP Comments Franciscan Mission Associates (FMA) Comments of Franciscan Mission Associates, March 8, 2017 FMA Comments Greeting Card Association (GCA) Initial Comments of the Greeting Card Association, 20, 2017 GCA Comments Guide Dog Foundation (GDF) Comments of the Dog Foundation, March 27, 2017 GDF Comments The Honorable Jason Chaffetz and the Honorable Mark Meadows of the U.S. House of Representatives Committee on Oversight and Government Reform Comments of the Honorable Chaffetz and the Honorable Mark Meadows of the U.S. House of Representatives Committee on Oversight and Government Reform, March 20, 2017 Chairman Chaffetz and Chairman Meadows Comments Jewish Ministries International (JVMI) Comments of Jewish Voice Ministries International, March 20, 2017 JVMI Comments LSC Communications (LSC) Comments of LSC Communications, March 20, 2017 LSC Comments Mailers Hub, LLC (MH) and the National Association of Advertising Distributors (NAAD) Comments of Mailers Hub LLC and the National Association of Advertising Distributors, March 20, 2017 MH and NAAD Comments