US Codex
Pub. L.
Notes

Title II — Postal Service Operational Reforms

117th Congress · Approved Apr 6, 2022 · 136 Stat. 1127 · Lineage

TITLE II Postal Service Operational Reforms

SEC. 201. Performance Targets and Transparency.

(a)
In General.— Subchapter VII of chapter 36 of title 39, United States Code, is amended by inserting after section 3691 the following:

Ҥ 3692. Performance targets and transparency

“(a) Performance Targets.—Each year, to ensure that mail service for postal customers meets the service standards for market-dominant products, established under section 3691, the Postal Service shall—

“(1) not later than 60 days after the beginning of the fiscal year in which they will apply, establish and provide to the Postal Regulatory Commission reasonable targets for performance for each product; and

“(2) provide the previous fiscal year’s performance targets in its Annual Compliance Report to the Postal Regulatory Commission for evaluation of compliance for each product.

“(b) Postal Regulatory Commission Determination of Certain Performance Information.—Not later than 90 days after first receiving the performance targets under subsection (a)(1), the Postal Regulatory Commission shall provide to the Postal Service—

“(1) requirements for the Postal Service to publish nationwide, regional, and local delivery area performance information in accordance with subsection (c)(2) that—

“(A) are consistent with the organizational structure of the delivery network of the Postal Service (including at the District and Area organizational levels, or the functional equivalents, and, to the extent practicable, at the U.S. ZIP Code Area level);

“(B) reflect the most granular geographic level of performance information appropriate for the Postal Service to publish; and

“(C) includes time period segments for the published geographic levels to satisfy the publishing requirements of subparagraphs (A) and (C) of subsection (c)(2); and

“(2) recommendations for any modifications to the Postal Service’s measurement systems necessary to measure and publish the performance information under subsection (c)(2) that the Postal Regulatory Commission deems relevant.

“(c) Public Performance Dashboard.—

“(1) In general.—The Postal Service shall develop and maintain a publicly available Website with an interactive web-tool that provides performance information for market-dominant products that is updated on a weekly basis.

“(2) Performance information.—The performance information provided for a market-dominant product on the Website shall include—

“(A) the type of market-dominant product;

“(B) performance information for different geographic areas, consistent with subsection (b);

“(C) performance information for different time periods, including annual, quarterly, monthly, and weekly segments;

“(D) comparisons of performance information for market-dominant products to performance information for previous time periods to facilitate identification of performance trends; and

“(E) the performance targets then in effect, and the performance targets for the previous fiscal year, as established under subsection (a)(1).

“(3) Comprehensibility.—The Website shall include plain language descriptions of the elements required under paragraph (2) and information on the collection process, measurement methodology, completeness, accuracy, and validity of the performance information provided on the Website.

“(4) Address search functionality.—The Website shall include functionality to enable a user to search for performance information by street address, ZIP Code, or post office box.

“(5) Format.—The Postal Service shall make the performance information provided on the Website available—

“(A) in a manner that—

“(i) presents the information required under paragraph (2) on an interactive dashboard;

“(ii) is searchable and may be sorted and filtered by the elements described in paragraph (2); and

“(iii) to the extent practicable, enables any person or entity to download in bulk—

“(I) such performance information; and

“(II) the results of a search by the elements described in paragraph (2);

“(B) under an ‘open license’ which has the meaning given that term in section 3502 of title 44; and

“(C) as an ‘open Government data asset’ and in a ‘machine-readable’ format which have the meaning given those terms in section 3502 of title 44.

“(6) Consultation.—The Postal Service shall regularly consult with the Postal Regulatory Commission on appropriate features and information to be included on the Website.

“(7) Public input.—The Postal Service shall—

“(A) solicit public input on the design and implementation of the Website; and

“(B) maintain a public feedback tool to ensure each feature of, and the information on, the Website is usable and understandable.

“(8) Deadline.—The Postal Service shall implement and make available to the public (and make any subsequent changes in accordance with subsection (b)) the Website not later than 60 days from the date on which the Postal Service receives the requirements and recommendations from the Postal Regulatory Commission under subsection (b), and shall continuously update such information on the Website as required by subsection (b).

“(9) Availability.—A link and plain language description of the Website shall be made available on any webpage where performance targets and measurements established under subsection (a)(1) are made available to the public.

“(10) Reporting.—The Postal Service, the Postmaster General, or the Board, as applicable, shall reference the dashboard described in paragraph (5)(A)(i) in the Annual Performance Plan under section 2803, the Annual Performance Report under section 2804, and the Annual Report under section 2402.

“(11) Definitions.—In this subsection—

“(A) Performance information.—The term ‘performance information’ means the objective external performance measurements established under section 3691(b)(1)(D).

“(B) Website.—The term ‘Website’ means the website described in paragraph (1).”

(b)
Technical and Conforming Amendment.— The table of sections for chapter 36 of title 39, United States Code, is amended by inserting after the item relating to section 3691 the following:

“3692. Performance targets and transparency.”.

SEC. 202. Integrated Delivery Network.

(a)
In General.— Section 101(b) of title 39, United States Code, is amended by inserting before “ The Postal Service” the following: “ The Postal Service shall maintain an integrated network for the delivery of market-dominant and competitive products (as defined in chapter 36 of this title). Delivery shall occur at least six days a week, except during weeks that include a Federal holiday, in emergency situations, such as natural disasters, or in geographic areas where the Postal Service has established a policy of delivering mail fewer than six days a week as of the date of enactment of the Postal Service Reform Act of 2022.”.
(b)
Rule of Construction.— Nothing in subsection (a) or the amendment made by such subsection is intended to alter or amend the requirements of chapters 20 or 36 of title 39, United States Code, and related implementing regulations, including provisions relating to costing, accounting, or rates.

SEC. 203. Review of Postal Service Cost Attribution Guidelines.

Not later than the date that is one year after the date of the enactment of this Act, the Postal Regulatory Commission shall initiate a review of the regulations issued pursuant to sections 3633(a) and 3652(a)(1) of title 39, United States Code, to determine whether revisions are appropriate to ensure that all direct and indirect costs attributable to competitive and market-dominant products are properly attributed to those products, including by considering the underlying methodologies in determining cost attribution and considering options to revise such methodologies. If the Commission determines, after notice and opportunity for public comment, that revisions are appropriate, the Commission shall make modifications or adopt alternative methodologies as necessary.

SEC. 205. Funding of Postal Regulatory Commission.

(a)
In General.— Subsection (d) of section 504 of title 39, United States Code, is amended to read as follows:

“(d)

(1) Not later than September 1 of each fiscal year (beginning with fiscal year 2022), the Postal Regulatory Commission shall submit to the Postal Service a budget of the Commission’s expenses, including expenses for facilities, supplies, compensation, and employee benefits, for the following fiscal year. Any such budget shall be deemed approved as submitted if the Governors fail to adjust the budget in accordance with paragraph (2).

“(2)

(A) Not later than 30 days after receiving a budget under paragraph (1), the Governors holding office, by unanimous written decision, may adjust the total amount of funding requested in such budget. Nothing in this subparagraph may be construed to authorize the Governors to adjust any activity proposed to be funded by the budget.

“(B) If the Governors adjust the budget under subparagraph (A), the Postal Regulatory Commission shall adjust the suballocations within such budget to reflect the total adjustment made by the Governors. The budget shall be deemed approved on the date the Commission makes any such adjustments. The Commission may make further adjustments to the suballocations within such budget as necessary.

“(3) Expenses incurred under any budget approved under this subsection shall be paid out of the Postal Service Fund established under section 2003.”

(b)
Conforming Amendments.— Title 39, United States Code, is amended—
(1)
in section 2003(e), by striking “ (B) all expenses of the Postal Regulatory Commission, subject to the availability of amounts appropriated under section 504(d);” and inserting “ (B) all expenses of the Postal Regulatory Commission, pursuant to section 504(d);”; and
(2)
in section 2009—
(A)
by striking “ , (2)” and inserting “ , and (2)”; and
(B)
by striking “ , and (3) the Postal Regulatory Commission requests to be appropriated, out of the Postal Service Fund, under section 504(d) of this title”.

SEC. 206. Flats Operations Study and Reform.

(a)
Flats Operations Study.—
(1)
In general.— The Postal Regulatory Commission, in consultation with the Inspector General of the United States Postal Service, shall conduct a study to—
(A)
comprehensively identify the causes of inefficiencies in the collection, sorting, transportation, and delivery of Flats; and
(B)
quantify the effects of the volume trends, investments decisions, excess capacity, and operational inefficiencies of the Postal Service on the direct and indirect costs of the Postal Service that are attributable to Flats.
(2)
Postal service assistance.— For the purposes of carrying out the study under paragraph (1), the Postal Service shall, upon request by the Postal Regulatory Commission, consult with the Postal Regulatory Commission and provide—
(A)
access to Postal Service facilities to personnel of the Postal Regulatory Commission; and
(B)
information and records necessary to conduct such study.
(3)
Report.— Not later than one year after the date of the enactment of this Act, the Postal Regulatory Commission shall submit to Congress and the Postmaster General a report on the findings of the study conducted under paragraph (1).
(4)
Flats defined.— In this subsection, the term “Flats” means products that meet the physical standards described in the Domestic Mail Manual (as in effect on the date of the enactment of this Act) for Flats mail for any class of mail.
(b)
Flats Operations Reform.—
(1)
In general.— Not later than six months after the date on which the Postal Regulatory Commission submits the report described in subsection (a)(3), the Postal Service shall—
(A)
develop and implement a plan to remedy each inefficiency identified in the study conducted under subsection (a)(1) to the extent practicable; and
(B)
if the Postal Service determines that remedying any such inefficiency is not practicable, provide to Congress and the Postal Regulatory Commission an explanation why remedying such inefficiency is not practicable, including whether it may become practicable to remedy such inefficiency at a later time.
(2)
Implementation requirements.— Prior to implementing the plan described in paragraph (1)—
(A)
the Postal Regulatory Commission must approve the plan; and
(B)
the Postal Service shall provide an adequate opportunity for public comment on the plan.
(3)
Completion notice.— On the date on which the plan described in paragraph (1) is fully implemented, as determined by the Postmaster General, the Postmaster General shall submit to Congress and the Postal Regulatory Commission a written notice of such implementation.
(c)
Subsequent Rate Adjustments.— During the five-year period beginning on the date on which the Postal Regulatory Commission submits a report under subsection (a)(3), the Postal Service, when making any adjustment to the rate of a market-dominant product (as defined in section 102 of title 39, United States Code), shall consider the findings of such report and, after the plan described in subsection (b)(1) is implemented, the plan’s efficacy in remedying the inefficiencies identified in the study conducted under subsection (a)(1).

SEC. 207. Reporting Requirements.

(a)
In General.— Not later than 240 days after the date of the enactment of this Act, and every six months thereafter, the Postmaster General shall submit to the President, the Postal Regulatory Commission, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committee on Oversight and Reform of the House of Representatives a report on the operations and financial condition of the Postal Service during the six-month period ending 60 days before the date on which the Postmaster General submits such report.
(b)
Contents.— Each report submitted under this section shall include updates, details of changes from previous standards and requirements, and assessments of progress being made on the operations and financial condition of the Postal Service, including—
(1)
the actual mail and package volume growth relative to any mail or package volume growth projections previously made or relied upon by the Postal Service, including a discussion of the reasons for the differences in projections and the associated adjustments being made;
(2)
the effect of pricing changes on product volume for market-dominant and competitive products, and associated revenue effects on financial projections, including a discussion of the reasons behind the differences in projections and associated adjustments being made;
(3)
customer use of network distribution centers and processing and distribution centers;
(4)
the status of the USPS Connect program and revenue effects of the program on the financial projections;
(5)
the use of Priority Mail, Priority Mail Express, First-Class Package Service, and Parcel Select services (as such terms are defined in the Mail Classification Schedule as in effect on the date of the enactment of this Act) among customers and associated revenue effects;
(6)
the use of USPS Connect Returns service among customers, and associated costs and revenue effects;
(7)
the use of USPS E-Commerce Marketplace among customers, and associated costs and revenue effects;
(8)
updates on the reliability, efficiency, and cost-effectiveness of the transportation network, including the manner in which ground transportation is utilized over air transportation for types of market-dominant products and competitive products;
(9)
a review of efforts to enhance employee training, safety, and wellbeing, including associated effects on employee recruitment, satisfaction, and retention;
(10)
a review of efforts being made to improve employee allocation, including changes of non-career employees to career status, and any associated impacts to operational expenses and processing, transportation, and delivery efficiency;
(11)
the rate of planned investment into Postal Service processing, transportation, and delivery equipment and infrastructure for market-dominant and competitive products, and a review of any associated effects on operational expenses and efficiency;
(12)
changes to network distribution centers and the expansion of regional distribution centers, including costs associated with the changes and any realized reduction in operational expenses or improved resource efficiencies;
(13)
a review of the ability of the Postal Service to meet performance targets established under section 3692(a)(1) of title 39, United States Code;
(14)
a discussion of the progress of the Postal Service in achieving any new, self-funded investments, including the amounts realized and expended to date, and a discussion of the reasons behind any disparities in the assumptions regarding the expected progress of the Postal Service getting new, self-funded investments to accommodate changes; and
(15)
any other information the Postal Service determines relevant, such as barriers or unanticipated events, in order to help the Postal Regulatory Commission, Congress, the President, and the American public evaluate the success or difficulties faced by the Postal Service in implementing the reform plan.
(c)
Confidential Information.—
(1)
In general.— The report required under this subsection shall be submitted in a form that excludes any proprietary or confidential information and trade secrets.
(2)
Notification.— If the Postal Service determines that any information must be excluded under paragraph (1), the Postal Service shall, at the time of submitting the report, notify the President, the Committee on Oversight and Reform of the House of Representatives, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Postal Regulatory Commission in writing of its determination and describe in detail the information for which confidentiality is sought and the reasons therefor.
(3)
Annexes.— The Postal Service shall submit to the persons and entities notified under paragraph (2) any information excluded under paragraph (1) in an annex that shall be treated as confidential in accordance with paragraph (4).
(4)
Treatment.— No person may, with respect to any information which such person receives under paragraph (4)—
(A)
use such information for purposes other than the purposes for which it is supplied; or
(B)
permit any person or entity other than a person or entity notified under paragraph (2), or the staff thereof, to have access to any such information.
(d)
Termination.— This section shall terminate on the date that is five years after the date on which the first report required by this section is submitted.

SEC. 208. Postal Service Transportation Selection Policy Revisions.

Section 101(f) of title 39, United States Code, is amended—
(1)
by striking “ prompt and economical” and inserting “ prompt, economical, consistent, and reliable”;
(2)
by inserting after “ all mail” the following: “ in a manner that increases operational efficiency and reduces complexity”;
(3)
by inserting “ cost-effective” after “ to achieve”; and
(4)
by inserting “ also” after “ Nation shall”.

SEC. 209. Usps Inspector General Oversight of Postal Regulatory Commission.

(a)
In General.— Section 8G of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—
(1)
in subsection (a)(2), by striking “ the Postal Regulatory Commission,”; and
(2)
in subsection (f)—
(A)
in paragraph (2)—
(i)
by striking “ (2) In carrying” and inserting “ (2)(A) In carrying”; and
(ii)
by adding at the end the following:

“(B) In carrying out the duties and responsibilities specified in this Act, the Inspector General of the United States Postal Service shall function as the Inspector General for the Postal Regulatory Commission, and shall have equal responsibility over the United States Postal Service and the Postal Regulatory Commission. The Commission shall comply with the Inspector General’s oversight as if the Commission were a designated Federal entity under subsection (a)(2) and as if the Inspector General were the inspector general of the Commission. The Governors of the Postal Service shall not direct oversight activities for the Postal Regulatory Commission.”

(B)
in paragraph (3)(A)(i), by inserting “ pertaining to the United States Postal Service” after “ subpoenas,”;
(C)
in paragraph (3)(B)(i), by inserting “ and the Postal Regulatory Commission” after “ United States Postal Service”;
(D)
in paragraph (3)(C), by inserting “ or the Postal Regulatory Commission” after “ Governors”;
(E)
by redesignating paragraphs (4), (5), and (6) as paragraphs (5), (6), and (7), respectively; and
(F)
by inserting after paragraph (3) the following:

“(4) For activities pertaining to the Postal Regulatory Commission, sections 4, 5, 6 (other than subsection (g) thereof), and 7 of this Act shall be applied by substituting the term ‘head of the Postal Regulatory Commission’ for ‘head of the establishment’.”

(b)
Appointment and Removal.— Section 202 of title 39, United States Code, is amended—
(1)
in subsection (e)(1), by striking “ The Governors shall appoint” and inserting “ The Governors and the members of the Postal Regulatory Commission shall appoint, by a favorable vote of a majority of the Governors in office and of a majority of the members of the Commission in office,”; and
(2)
in subsection (e)(3), by inserting “ and 3 members of the Postal Regulatory Commission” after “ at least 7 Governors”.
(c)
Savings Provision.—
(1)
Personnel, documents, assets.— All personnel, documents, assets, unexpended balances of appropriations, and obligations of the Inspector General for the Postal Regulatory Commission shall transfer to the Inspector General of the Postal Service on the effective date of this section.
(2)
Legal documents.— Any order, determination, rule, regulation, permit, grant, loan, contract, agreement, certificate, license, or privilege that has been issued, made, granted, or allowed to become effective by the Inspector General of the Postal Regulatory Commission that is in effect on the effective date of this section shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law.
(3)
Proceedings.— This section and the amendments made by this section shall not affect any proceeding pending on the effective date of this section before the Inspector General of the Postal Regulatory Commission, but such proceeding shall be continued by the Inspector General of the Postal Service, at the discretion of that Inspector General. Nothing in this paragraph shall be construed to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that the proceeding could have been discontinued or modified if this section and those amendments had not been enacted.
(4)
Suits.— This section and the amendments made by this section shall not affect any suit commenced before the effective date of this section, and in any such suit, proceeding shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this section or such amendments had not been enacted.
(5)
References.— Any reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document relating to the Inspector General of the Postal Regulatory Commission shall be deemed to refer to the Inspector General of the United States Postal Service.
(d)
Technical and Conforming Amendment.— Section 504 of title 39, United States Code, is amended by striking subsection (h).
(e)
Effective Date.— This section and the amendments made by this section shall take effect on the date that is 180 days after the date of enactment of this Act.