ORDER NO. 74

UNITED STATES OF AMERICA

POSTAL REGULATORY COMMISSION

WASHINGTON, DC 20268-0001

Before Commissioners: Dan G. Blair, Chairman;

> Mark Acton, Vice Chairman;\
> Ruth Y. Goldway; and\
> Tony L. Hammond

Review of Nonpostal Services Docket No. MC2008-1

ORDER GRANTING MOTION TO COMPEL

AND REVISING THE PROCEDURAL SCHEDULE

(Issued April 29, 2008)

# Background

The Postal Accountability and Enhancement Act (PAEA), Pub. L. No.
109-435, 120 Stat. 3198 (2006) limits the Postal Service's authority to
provide nonpostal services to those it offered as of January 1, 2006 and
directs the Commission to review each nonpostal service offered by the
Postal Service on the date of the PAEA's enactment, December 20, 2006,
within two years of that date. 39 U.S.C. §§ 404(e)(2) and (e)(3). The
term "nonpostal service" is defined in section 404(e)(1) as "any service
that is not a postal service defined under section 102(5)\[,\]" which,
in turn, defines the term "postal service" to mean "the delivery of
letters, printed matter, or mailable packages, including acceptance,
collection, sorting, transportation, or other functions ancillary
thereto\[.\]" *Id*. § 102(5).

The purpose of the Commission's review under section 404(e)(3) is to
determine which nonpostal services should continue, taking into account
the public need for the service and the private sector's ability to meet
that need. Any nonpostal service that the Commission concludes should
not continue shall terminate. *Id*. § 404(e)(4). Any nonpostal service
that the Commission authorizes to continue "shall be regulated under
this title as a market dominant product, a competitive product, or an
experimental product." *Id*. § 404(e)(5)*.*

On December 20, 2007, the Commission initiated this proceeding to
fulfill its responsibilities under section 404(e)(3), adopting a
procedural schedule which, among other things, directs the Postal
Service to submit a sworn statement by no later than March 19, 2008,
"identify\[ing\] and provid\[ing\] a complete description of each
nonpostal service" \[it offered\] on the date of enactment of the
PAEA."[^1] The "complete description" is to include the current status
of each nonpostal service, the Postal Service's proposed classification
of service it believes it should continue to offer (as market dominant,
competitive, or experimental), and a sworn statement by a knowledgeable
person (or persons) addressing, at a minimum, the public need for each
such service. *Id.*[^2]

*The Postal Service's filings.* In response to Order No. 50, the Postal
Service filed two documents: Statement of Tina M. Lance on Behalf of the
United States Postal Service (Lance Statement), and United States Postal
Service Notice of Submission of Sworn Statement on "Nonpostal Services"
Pursuant to 39 U.S.C. § 404(e) (Postal Service Notice). The Lance
Statement discusses five nonpostal services, offered on January 1, 2006,
which the Postal Service proposes it be authorized to continue
("grandfathered") pursuant to section 404(e)(2). Lance Statement at 12.
The five nonpostal services are: passport photo service,[^3]
photocopying service, notary public service, stored value cards, and
official licensed retail products. The Postal Service proposes that
these five nonpostal services be added to the Mail Classification
Schedule (MCS) and be classified as competitive products. Postal Service
Notice at 3‑4.

The Postal Service Notice does more than simply notice the Lance
Statement. Its larger purpose is a platform for the Postal Service to
discuss its interpretation of section 404(e) and its division of
nonpostal services into three categories, namely: (1) services discussed
by Ms. Lance which it seeks to grandfather; (2) services not previously
regulated by the Commission, but which the Postal Service believes
should be classified as postal services;[^4] and (3) services that are
not postal services but are separately authorized under title 39,
*e.g.*, section 411 (cooperation with other government agencies) and
section 404(a)(5) (philatelic services). *Id.* at 11-27.[^5] This latter
category also includes activities that the Postal Service contends are
not services, but rather are simply revenue generating arrangements
executed pursuant to its authority to undertake general business
activities under section 401, *e.g.*, to enter into

contracts, sell and acquire property, and construct, operate, or lease
facilities and equipment. *Id.* at 27-30.[^6]

In an effort to buttress its legal theory regarding nonpostal services,
the Postal Service argues that the scope of the Commission's authority
under section 3653 (annual compliance determination) and section 3662
(complaints) "helps to demonstrate that certain services and
revenue-producing activities fall outside of the Commission's remedial
authority." *Id*. at 31. The Postal Service contends that because
section 3662 does not enumerate section 401 (other than section 401(2)),
the Commission lacks authority to review Postal Service activities
undertaken pursuant to section 401. It also argues that the Commission
cannot "review the 'terms and conditions' that 'the Postal Service and
the head of the agency concerned shall deem appropriate' with respect to
section 411 service." *Id*.[^7]

*Public Representative's motion to compel.* The Public Representative
moves for an order compelling the Postal Service to file a complete
response to Order No. 50, asserting that it failed to comply with the
Commission's directive that it provide a complete list and description
of all nonpostal services offered as of December 20, 2006.[^8] The
Public Representative briefly summarizes the Postal Service's legal
theory, noting its division of "nonpostal" services into three
categories, *i.e.*, services heretofore not regulated by the Commission
that should be classified as postal services, nonpostal services that
should be grandfathered, and separately authorized services that are
neither postal nor nonpostal services. *Id.* at 2. The Public
Representative takes no position on the Postal Service's legal
arguments, but does observe that it has provided descriptions for only
the five grandfathered nonpostal services discussed in the Lance
Statement. *Id*.

The Public Representative seeks a complete list of nonpostal services,
arguing that, under the PAEA, it is the Commission's responsibility, not
the Postal Service's, to determine which "offerings are nonpostal
services and which of those offerings should continue." *Id.* He
concludes that the Postal Service's unilateral exclusion of numerous
nonpostal services from the review process attempts to usurp the
Commission's jurisdiction over nonpostal services and thus is contrary
to section 404(e). Therefore, the Public Representative requests the
Commission to direct the Postal Service to file a complete list
"identifying and providing a complete description of those offerings the
Postal Service is describing in its Notice and any other offerings which
a reasonable person could read as being a nonpostal service offered by
the Postal Service." *Id.* at 4.

*Postal Service response to Motion.* The Postal Service response to the
Public Representative's Motion includes two attachments.[^9] Attachment
One, following the practice employed in the Postal Service Notice,
divides nonpostal services into three categories as follows: (1)
services "treated as 'nonpostal' in the past, but which the Postal
Service in the future wishes to add to the MCS and treat as 'postal
services\[;\]'"[^10] (2) grandfathered nonpostal services discussed in
the Lance Statement; and (3) services "treated as 'nonpostal' in the
past, but which the Postal Service submits are authorized under separate
grants of statutory authority." *Id*. at 2-3. The latter category
identifies services provided pursuant to section 411 (*e.g.*, Selective
Service Registration and Migratory Bird Stamps), philatelic services
provided pursuant to section 404(a)(5), and seven services provided
pursuant to section 401(5) (*e.g.*, FedEx drop boxes, Electronic
Postmark, and Hybrid Mail Services).

Attachment Two provides program descriptions for the services listed in
Attachment One, except for several of those addressed in the Lance
Statement.

The Postal Service argues that its response "should provide the Public
Representative with the information he apparently believes to be
lacking." *Id.* at 3.[^11] Perceiving no need for further relief, the
Postal Service requests that the Public Representative's Motion be
denied as moot. *Id.* at 4.

# Commission ruling

The Public Representative's Motion is granted. The impetus for the
motion was the Postal Service's failure to identify and describe the
various nonpostal services it provides. Although it supplements the
Postal Service's initial filings, the Postal Service Response does not
cure that failure because it is predicated on the unsustainable theory
that the Postal Service, not the Commission, is authorized to determine
which services, that are *not* postal services, offered by the Postal
Service on December 20, 2006 constitute nonpostal services that, under
the PAEA, are subject to the Commission's authority to terminate or
continue. The Postal Service characterizes those services it identifies
as "examples" giving the impression that it sells other services that it
has chosen not to mention. The Commission is required by law to review a
complete list.

## Section 404(e) Requires the Commission to Review All Services that are not Postal Services

Under the Postal Reorganization Act (PRA), Pub. L. 91-375, 84 Stat. 719
(1970), the Commission had no authority over nonpostal services offered
by the Postal Service.[^12] The PAEA changes that.

Section 404(e)(3) requires the Commission to review *each* nonpostal
service --- defined, in section 404(e)(1), as "any service that is not a
postal service" --- offered by the Postal Service on December 20, 2006.
Under the PAEA, the term "postal service" means "the delivery of
letters, printed matter, or mailable packages, including acceptance,
collection, sorting, transportation, or other functions ancillary
thereto\[.\]" *See* section 102(5).[^13] Thus, under the PAEA, the
Postal Service is limited to offering only postal services or nonpostal
services. There is no provision for a third category of services which
is neither "not postal" nor "not nonpostal," or, as the Postal Service
would have it, not services at all but merely sources of revenue.

In enacting section 404, Congress intended for the Commission to review
each nonpostal service offered by the Postal Service as of December 20,
2006 and determine whether it should be terminated or continued based on
the public need for the service and the ability of the private sector to
meet that need. By limiting the Postal Service to grandfathered
nonpostal services and requiring that every nonpostal service be subject
to review before being allowed to continued (or alternatively being
terminated), Congress ensured that the Postal Service could not, as it
had under the PRA, deviate from "its basic function \[which is\] the
obligation to provide postal services to bind the Nation together
through the personal, educational, literary, and business correspondence
of the people." 39 U.S.C. §101(a); *see also* section 403(a) ("The
Postal Service shall plan, develop, promote, and provide adequate and
efficient postal services at fair and reasonable rates and fees.").

The Postal Service devotes a lengthy discussion to various bills
introduced prior to the passage of the PAEA intended to show that these
earlier bills, as relates to the issue of nonpostal services, were
"limited in scope to eliminating former section 404(a)(6)." Postal
Service Notice at 19; *see also id*. at 19-24. It reaches this
conclusion because the prior bills defined the term "postal service,"
eliminated section 404(a)(6), and included a provision that would either
preclude the Postal Service from providing any "special nonpostal or
similar services,"[^14] or as an exception to that, grandfather "special
nonpostal or similar services" provided as of a specific date.[^15] The
Postal Service's discussion fails to demonstrate that Congress intended
something different than what it expressly adopted in section 102 of the
PAEA (codified at 39 U.S.C. § 404(e)).

The Postal Service characterizes the PAEA as a compromise between two
bills before the 109^th^ Congress --- the House version (H.R. 22) that
included a grandfather provision and a Senate version (S. 662) that did
not, but that did exempt section 411. According to the Postal Service,
the PAEA embodies a compromise of these two bills because section 102
(of the PAEA) includes a grandfather clause, but requires the Commission
to review any services authorized by the grandfather clause. *Id.* at
22.

The introduction of the wholly new concept of Commission review and
authorization (or termination) of each nonpostal service is in no sense
a compromise between competing provisions, particularly when the PAEA
makes no exceptions to the scope of the review and specifically defines
the term "nonpostal service" to mean "*any service* that is not a postal
service defined under section 102(5)." 39 U.S.C. § 404(e)(1) (emphasis
added). In the face of this straightforward definition, the Postal
Service's claim that it is "vague"[^16] is unpersuasive. In the end, the
Postal Service can only urge that the definition in section 404(e)(1) of
the PAEA "should not be viewed as a deliberate decision by Congress . .
. ." *Id.*

The Commission declines to interpret section 404(e) in that fashion, but
rather will give the words their ordinary meaning and will, as required
by section 404(e)(3), review each nonpostal service provided by the
Postal Service as of December 20, 2006. Reading the PAEA in this fashion
is consistent with the fundamental underpinnings of the PAEA, namely,
flexibility, transparency, and accountability. The increased flexibility
afforded the Postal Service under the PAEA, *e.g.*, setting prices and
reducing costs, is coupled with appropriate oversight by the Commission
to ensure the transparency of Postal Service finances and operations
(subject to reasonable safeguards) and that the Postal Service remains
accountable to the public.[^17] Section 404(e) makes it plain that
Congress intended to limit the Postal Service's nonpostal services and
left it to the Commission to determine which ones should continue.
Congress, in short, wanted the Postal Service to focus on its core
responsibilities to provide "adequate and efficient postal services at
fair and reasonable rates and fees." Section 403(a).[^18]

The Postal Service's argument (Postal Service Notice at 11-19) that
section 404(e) does not encompass nonpostal services provided for under
sections 404(a)(5) (philatelic services) and section 411 (cooperation
with other government agencies) is unavailing. First, the services at
issue, particularly those under section 411, are indisputably
nonpostal.[^19] Second, section 404(e) does not exempt any nonpostal
service from the review process. As the Postal Service notes, various
postal reform bills introduced prior to the PAEA did exempt section 411.
That the PAEA does not, affirms that such services fall within the
purview of section 404(e). Third, review does not restrict the Postal
Service's right to enter into arrangements with other agencies.

The Postal Service implies that review will prevent it from fulfilling
Congressional expectations that it will continue to cooperate with other
government agencies. There is no basis for any such concerns. The Postal
Service currently provides Services for Other Government Agencies; for
example, passport applications are processed at certain Postal Service
facilities for an established fee. The presumption is the Postal Service
can represent that the agencies involved believe that there is public
need for these services that can best be met by the Postal Service.
Under such circumstances, Services for Other Government Agencies would
continue. Should agencies request the Postal Service to furnish property
or services in the future, the Postal Service would continue to have
authority to provide it, and assuming it did so, the service would be
identified in the MCS, with its revenues and costs included in periodic
reports filed with the Commission.

Lastly, the Postal Service's claim (*id.* at 27-30) that, pursuant to
section 401, it may engage in an unfettered variety of revenue
generating activities that are not "services" is untenable and
unconvincing. To be sure, section 401 grants the Postal Service general
powers necessary to operate as a going concern. These general powers
include, for example, authority to sue and be sued, execute contracts,
buy and sell property, and operate, lease, and maintain buildings
necessary or convenient in the transaction of its business.

The Postal Service provides several examples of these revenue generating
activities that it claims are not services and thus, under its theory,
are shielded from any oversight. These include, for example, the
arrangement with FedEx to place its drop boxes outside certain Postal
Service facilities, the licensing of intellectual property to interested
parties, *e.g.*, Electronic Postmark (EPM) and its trademark
"Moversguide," which is licensed to a company that produces pamphlets
containing information and advertisements for residents who have
recently relocated, and affiliate linking arrangements on its website
for which, typically, the Postal Service receives revenues based on the
number of click-throughs. *Id.* at 28-30.

The examples may plausibly be characterized as convenient outgrowths of
the provision of postal services to the nation. But section 401(5) does
not authorize revenue generating activities that are not outgrowths of
"its business" --- providing postal services to the nation. For example,
purchasing an apartment building for the purpose of leasing residential
property would appear to be outside the scope of section 401(5). To
assure compliance, Congress wanted an independent review of all of the
Postal Service's nonpostal activities, and an evaluation of whether
there was public need for continuing Postal Service participation in
that market.

Every revenue generating arrangement executed by the Postal Service
entails either a postal service or nonpostal service. Regarding the
latter, each such agreement necessarily involves a *quid pro quo* by the
Postal Service. It agrees to provide a product or a service to a third
party in return for a fee, the opportunity to earn revenues, or perhaps
some other benefit. It is providing a service regardless whether, for
example, it makes lobby space or its brand available.

The notion that the Postal Service may evade oversight of such
arrangements simply by characterizing them as sources of revenue is
inimical to the principles of transparency and accountability on which
the PAEA rests. With its clear definition of the term "nonpostal
service" and the directive to the Commission to review each one, section
404(e) was designed to avoid the situation that occurred under the PRA
when the Postal Service claimed broad authority to engage in commercial,
nonpostal services while arguing that the Commission lacked authority to
determine the scope of its own jurisdiction.[^20] In sum, the Postal
Service must provide details of each nonpostal revenue generating
arrangement regardless of the statutory authority on which it is
premised. Without this information, the Commission will be unable to
fulfill its responsibilities under the PAEA and will, in essence, have
ceded its jurisdiction to the Postal Service.

## The Commission's Complaint Authority Extends to Continuing Nonpostal Services

The Postal Service argues that the Commission's complaint authority does
not extend to nonpostal services provided pursuant to sections 404(a)(5)
and 411 or to what it calls "revenue-producing activities" entered into
pursuant to section 401. *Id*. at 31. The Postal Service asserts that,
since these sections are not enumerated in section 3662, the Commission
lacks authority over them. The argument has no merit.

Under Section 404(e), the Commission is required to review each
nonpostal service and, based on the public need for the service and the
private sector's ability to satisfy that need, direct the Postal Service
to terminate the service or authorize it to continue. Those authorized
to continue are to "be regulated under this title as a market dominant
product, a competitive product, or an experimental product." Section
404(e)(5). The requirement that continuing nonpostal services be
regulated under title 39 and be designated as market dominant,
competitive, or experimental subjects such services to chapter 36 of
title 39, which is one of the enumerated provisions in section 3662.
Thus, continuing nonpostal services are subject to the Commission's
complaint jurisdiction.[^21]

Moreover, contrary to the Postal Service interpretation, the
Commission's authority extends to matters outside the complaint
provision. These would include, for example, appeals of post office
closing (section 404(d)(5)), rules developed in response to the Treasury
Department's report (section 2011(h)(2)(B)), and the report on
cooperative mailings (section 711 of the PAEA).

In discussing its various revenue generating arrangements, the Postal
Service argues that "\[t\]he Commission in the past has not intervened
in such revenue-producing transactions involving Postal Service real and
personal property (whether tangible or intangible), and the provisions
of the PAEA would not lead to a change in this regard." Postal Service
Notice at 28; *see also id.* at 31. Neither element of this statement
has merit. This statement ignores fundamental differences between the
Commission's jurisdiction under the PRA --- which precluded the
Commission from "intervening" in such arrangements --- and its
jurisdiction under the PAEA --- which specifically requires that the
Commission review nonpostal services.

Under the PRA, the Commission made it clear on numerous occasions that
"\[t\]he lawfulness of the Postal Service's nonpostal activities is not
an issue for resolution by the Commission."[^22] Thus, the inference
that the Commission's "failure" to "intervene" in such matters carries
no weight. More importantly, however, the PAEA mandates that the
Commission review each nonpostal service and determine which ones are to
continue. Thus, the claim that "the provisions of the PAEA would not
lead to a change in this regard" is badly misplaced. The PAEA represents
a jurisdictional sea change.

In sum, the Postal Service has not complied with the directives of Order
No. 50, including, among other things, that it "identify and provide a
complete description of each nonpostal service offered by the Postal
Service on the date of enactment of the PAEA."[^23] Therefore, the
Postal Service is directed to file by no later than June 9, 2008 a
complete listing and comprehensive description of each nonpostal service
provided as of December 20, 2006, including all existing agreements
(contracts, arrangements, or however characterized) that generate
revenues (or for which the Postal Service otherwise receives
compensation) regardless of the statutory authority claimed for such
agreements. For those it wishes to continue, the Postal Service should
provide a sworn statement by a knowledgeable person (or persons)
addressing the public need for each such service and such other matters,
if any, the Postal Service deems relevant (collectively, Postal Service
statement).

With respect to nonpostal services that it now wishes to have classified
as postal services, the Postal Service is directed to file a list of
such services by no later than June 9, 2008 accompanied by a sworn
statement by a knowledgeable person (or persons) in support of and
justifying the proposal.[^24] The Postal Service may, if it wishes,
submit its proposal to have certain nonpostal services reclassified as
postal prior to June 9, 2008. Any nonpostal service that the Postal
Service does not seek to reclassify must be included in the nonpostal
services listing, also due no later than June 9, 2008, as discussed
above.

Finally, on or before June 9, 2008, the Postal Service shall also
provide the total annual revenues for FY 2006 and FY 2007 for each
nonpostal service (whether subject to reclassification or not). The
Postal Service may submit revenue information in a non-public annex.

## Revised Procedural Schedule

As discussed above, the materials to be submitted by the Postal Service
are due on or before June 9, 2008. The procedural schedule adopted in
Order No. 50 is modified as follows:

-   By no later than July 16, 2008, any interested person (party) may
    respond to the Postal Service statement by submitting a sworn
    statement from a knowledgeable person (or persons) addressing, at a
    minimum, the ability of the private sector to meet the public need
    for any nonpostal service that the party asserts should not be
    offered by the Postal Service (party's statement). A party may also
    address such other matters, if any, the party deems relevant.

-   By no later than July 30, 2008, the Postal Service and any
    interested person may submit a reply to any party's statement. Such
    reply shall be in the form of a sworn statement by a knowledgeable
    person (or persons).

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-   Initial briefs are due August 27, 2008; and

-   Reply briefs are due September 9, 2008.

*It is ordered:*

1.  The Public Representative Motion to Compel United States Postal
    Service to File Complete List of Nonpostal Services, filed March 25,
    2008, is granted.

2.  As set forth in the body of this Order, the materials to be
    submitted by the Postal Service are due no later than June 9, 2008.

3.  The procedural schedule is revised as set forth in the body of this
    Order.

By the Commission.

Steven W. Williams Secretary

[^1]: PRC Order No. 50, December 20, 2007, at 2 (footnote omitted).

[^2]: In the event the services identified differed from the nonpostal
    services offered as of January 1, 2006, the Postal Service was
    instructed to identify those services no longer offered, provide a
    brief description of such services, and indicate their current
    status. *Id*., n.2.

[^3]: The Postal Service takes the position that it need not seek to
    grandfather passport application acceptance service since that
    service is provided pursuant to 39 U.S.C. § 411. *Id*. at 3, n.2.

[^4]: The Postal Service indicates that there are "many" such services,
    identifying, presumably illustratively, three such services,
    including: Address Management Services, ReadyPost, and International
    Money Transfer Service (IMTS). *Id.* at 5-10. The Postal Service
    states that it intends to "take appropriate actions, in the near
    future, to add \[the former two\] to the MCS." *Id.* at 7. It
    distinguishes IMTS, which, it notes, was included in the MCS in
    Order No. 43, stating its belief that IMTS should be considered a
    postal service. *Id.* at 7-10. The inclusion there, however, does
    not preclude the Commission, on review in this proceeding, from
    determining, if appropriate, whether IMTS is a postal product or a
    nonpostal product and, if the latter, whether it should continue.

[^5]: The Postal Service identifies three current services it provides
    pursuant to section 411, including Passport Application Acceptance,
    Selective Service Registration, and distributing pamphlets for the
    Federal Emergency Management Agency. *Id.* at 12. Whether this
    listing is illustrative is unclear.

[^6]: Examples cited by the Postal Service include "retail agreements"
    involving FedEx and Pitney Bowes, agreements involving intellectual
    property such as Moversguide, branding and licensing agreements
    (Electronic Postmark), and affiliate linking agreements (involving a
    link on the Postal Service's website).

[^7]: The Postal Service also requests that, if the Commission believes
    that nonpostal services not included in the Lance Statement should
    be reviewed in this proceeding, it issue its decision sufficiently
    before December 20, 2008 "to allow the Postal Service to consider
    its options, including seeking to get those services approved before
    that deadline." *Id.* at 33-34.

[^8]: Public Representative Motion to Compel United States Postal
    Service to File Complete List of Nonpostal Services, March 25, 2008
    (Motion).

[^9]: Response of the United States Postal Service to Motion of the
    Public Representative to Compel Filing of Complete List of Nonpostal
    Services, April 1, 2008 (Postal Service Response).

[^10]: The Postal Service adds Greeting Cards to the list of services in
    this category identified in the Postal Service Notice. *Id.*,
    Attachment One.

[^11]: The Postal Service states that, by providing the additional
    information, it does not intend to waive any arguments concerning
    how each such service identified should be treated under the PAEA,
    regardless of how each may have been classified under the Postal
    Reorganization Act. *Id.*

[^12]: Under the PRA, the Postal Service adopted an expansive
    interpretation of its authority to provide nonpostal services.
    Notwithstanding that it lacked jurisdiction over nonpostal services,
    the Commission found it necessary to address the Postal Service's
    interpretation because of its jurisdictional implications concerning
    postal services, a matter over which the Commission has undisputed
    jurisdiction. *See*, *e.g.*, PRC Order No. 1424, Docket No.
    RM2004-1, November 12, 2004.

[^13]: Under the PRA, the term postal service was not defined. In
    response to growing concerns about the jurisdictional implications
    of various nonpostal services offered by the Postal Service and to
    provide guidance to the Postal Service and the public, the
    Commission adopted a definition of the term "postal service" in
    Docket No. RM2004-1. PRC Order No. 1449, January 4, 2006. The PAEA
    imposes a more limited definition.

[^14]: *See* former 39 U.S.C. § 404(a)(6).

[^15]: Postal Service Notice at 19-22. Some bills also included an
    exception for section 411. *Id.* at 22, n.53.

[^16]: Postal Service Notice at 22.

[^17]: *See, e.g.*, H.R. Rep. 109-66, part 1, at 43. ("The bill mandates
    transparency in the Service's finances, costs, and operations.");
    and at 44 ("Under the legislation, the Postal Service will compete
    on a level playing field, under many of the same terms and
    conditions as faced by its private sector competitors, albeit with
    stronger controls, oversight, and limitations in recognition of its
    government status." ).

[^18]: The Commission recognizes the Postal Service's desire to continue
    to generate revenues from various sources. Authority to attempt to
    do so, however, is subject to the reasonable two-part test in
    section 404(e)(3).

[^19]: The Postal Service uses the term "nonpostal" to describe section
    411 arrangements in its implementing regulations. 39 C.F.R. §
    259.1(b). "The Postal Service establishes reasonable fees and
    charges for nonpostal services performed for agencies of the Federal
    as well as State governments." Philatelic services (or some
    component thereof), reevaluated in light of the PAEA, could possibly
    be classified as a postal service. The Commission mentions this, not
    to suggest that result, but only to indicate that otherwise
    philatelic services must be nonpostal in nature.

[^20]: As an example, the Postal Service recasts EPM service as provided
    pursuant to section 401, whereas previously that service was
    justified under former section 404(a)(6). While the arrangement may
    have changed, the Postal Service is nonetheless still providing a
    service in the form of branding (lending its name) to those with
    whom it contracts.

[^21]: Terminated nonpostal services would not be subject to the
    Commission's complaint jurisdiction. Since they could no longer be
    offered by the Postal Service, there would be no basis for a
    complaint.

[^22]: PRC Order No. 1449, January 3, 2006, at 21 (footnote omitted).
    *See also* PRC Order No. 724, December 2, 1986, at 11; PRC Order No.
    1239, May 3, 1999, at 13; and PRC Order No. 1424, November 12, 2004,
    at 3 (emphasis in original) ("Nothing in the proposed rule affects
    the lawfulness of Postal Service products or services that are *not*
    postal.").

[^23]: PRC Order No. 50, December 20, 2007, at 2 (footnote omitted).

[^24]: The listing should also include any unreported agreements
    (contracts or other arrangements) with customers, mailers, users of
    the mails, or their agents (collectively mailers) which involve
    mailers paying a discounted rate (or rates), receiving a rebate (or
    rebates) in some form from the Postal Service, or otherwise
    receiving some benefit from the Postal Service.