I 

113TH CONGRESS 

2D SESSION H. R. 4174 

To amend title 39, United States Code, to modernize and improve Alaska 

bypass freight mail transportation. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 6, 2014 

Mr. ISSA (for himself and Mr. FARENTHOLD) introduced the following bill; 

which was referred to the Committee on Oversight and Government Reform 

A BILL 

To amend title 39, United States Code, to modernize and 

improve Alaska bypass freight mail transportation. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Alaska Bypass Mod5 ernization Act of 2014’’. 

6 SEC. 2. ALASKA BYPASS MAIL TRANSPORTATION. 

7 (a) IN GENERAL.—Section 5402 of title 39, United 

8 States Code, is amended— 

9 (1) in the section heading by striking ‘‘Con10 tracts for transportation of mail by air’’ 


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1 and inserting ‘‘Alaska bypass mail transpor2 tation’’; 

3 (2) in subsection (a)— 

4 (A) by striking paragraphs (2), (7), and 

5 (9); and 

6 (B) by redesignating paragraphs (3), (4), 

7 (5), (6), (8), (10), (11), (12), (13), (14), (15), 

8 (16), (17), (18), (19), (20), (21), (22), (23), 

9 (24), and (25) as paragraphs (2) through (22), 

10 respectively; 

11 (3) by striking subsections (b) through (f); 

12 (4) by redesignating subsections (g) through (s) 

13 as subsections (c) through (o), respectively; 

14 (5) by inserting after subsection (a) the fol15 lowing: 

16 ‘‘(b) EFFICIENT TRANSPORT OF ALASKA BYPASS

17 MAIL.—In selecting a carrier of nonpriority bypass mail 

18 to a point in the State of Alaska, the Postal Service 

19 shall— 

20 ‘‘(1) ensure a minimum of 1 scheduled flight 

21 per week to each nonpriority bypass mail destination 

22 with guaranteed capacity for nonpriority bypass 

23 mail, subject to the condition that weather condi24 tions, lack of available service, or other extraorVerDate Mar 15 2010 02:06 Mar 11, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4174.IH H4174

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1 dinary circumstances do not interfere with the ful2 fillment of this minimum requirement; and 

3 ‘‘(2) ensure that any flight that transports non4 priority bypass mail to a nonpriority bypass mail 

5 destination and is in addition to the minimum 

6 flights required under paragraph (1)— 

7 ‘‘(A) is necessary to the delivery of nonpri8 ority bypass mail; and 

9 ‘‘(B) maximizes the cost efficiency to the 

10 Postal Service.’’; 

11 (6) in subsection (c)(2) (as redesignated by 

12 paragraph (4) of this subsection)— 

13 (A) in subparagraph (E) by striking 

14 ‘‘(E)(i)’’ and all that follows through the end of 

15 clause (i) and inserting the following: 

16 ‘‘(E)(i) may offer tender of nonpriority mainline 

17 bypass mail at mainline rates to a bush carrier oper18 ating from an acceptance point to a hub point in the 

19 State of Alaska, in addition to the terms of subpara20 graph (C); and’’; 

21 (B) by striking subparagraph (F) and in22 serting the following: 

23 ‘‘(F) shall offer equitable tender of nonpriority 

24 bypass mail in proportion to passenger and nonmail 

25 freight pools described in this section between qualiVerDate Mar 15 2010 02:06 Mar 11, 2014 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4174.IH H4174

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1 fied passenger and nonmail freight carriers on a 

2 route from an acceptance point to a bush destination 

3 in the State of Alaska at a composite rate if— 

4 ‘‘(i)(I) for a passenger carrier, the carrier 

5 receiving the composite rate provided passenger 

6 service in accordance with the requirements of 

7 subsection (d)(2); or 

8 ‘‘(II) for a nonmail freight carrier, the car9 rier receiving the composite rate provided at 

10 least 25 percent of the nonmail freight service 

11 for the 12 months immediately preceding the 

12 date on which the carrier seeks tender of such 

13 mail; 

14 ‘‘(ii) the carrier qualifies under subsection 

15 (d) to be tendered nonpriority bypass mail out 

16 of the hub point being bypassed; 

17 ‘‘(iii) the tender of such mail will not de18 crease efficiency of delivery of nonpriority by19 pass mail service into or out of the hub point 

20 being bypassed; and 

21 ‘‘(iv) such tender will result in reduced 

22 payments to the carrier by the Postal Service 

23 over flying the entire route; and’’; 

24 (C) in subparagraph (G) by striking ‘‘not25 withstanding subparagraph (F),’’; and 


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1 (D) in the matter following subparagraph 

2 (G) by striking ‘‘subparagraph (G)’’ and insert3 ing ‘‘subparagraphs (F) and (G)’’; and 

4 (7) in subparagraph (c)(4)(A) (as redesignated 

5 by paragraph (4) of this subsection) by striking 

6 ‘‘subparagraph (B)’’ and inserting ‘‘subparagraph 

7 (B), paragraph (2)(E),’’. 

8 (b) CLERICAL AMENDMENT.—The table of sections 

9 for chapter 54 of such title is amended by striking the 

10 item relating to section 5402 and inserting the following: 

‘‘5402. Alaska bypass mail transportation.’’. 

11 (c) CONFORMING AMENDMENTS.—Section 5402 of 

12 such title is amended— 

13 (1) in subsection (a)— 

14 (A) in paragraph (4) by striking ‘‘sub15 section (g)(1)(A)(iv)(I)’’ and inserting ‘‘sub16 section (c)(1)(A)(iv)(I)’’; 

17 (B) in paragraph (5) by striking ‘‘sub18 section (g)(1)(A)(iv)(I)’’ and inserting ‘‘sub19 section (c)(1)(A)(iv)(I)’’; 

20 (C) in paragraph (13) by striking ‘‘sub21 section (g)(1)(A)(iv)(II)’’ and inserting ‘‘sub22 section (c)(1)(A)(iv)(II)’’; and 

23 (D) in paragraph (15)(A) by striking ‘‘sub24 section (g)(1)(A)(iv)’’ and inserting ‘‘subsection 

25 (c)(1)(A)(iv)’’; 


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1 (2) in subsection (c) (as redesignated by sub2 section (a)(4) of this section)— 

3 (A) in paragraph (2)— 

4 (i) in subparagraph (C)(ii) by striking 

5 ‘‘subsection (h)(5)’’ and inserting ‘‘sub6 section (d)(5)’’; and 

7 (ii) in subparagraph (D)— 

8 (I) in clause (i)(II) by striking 

9 ‘‘subsection (h)(5)’’ and inserting 

10 ‘‘subsection (d)(5)’’; and 

11 (II) in clause (ii)(II) by striking 

12 ‘‘subsection (i)(6)’’ and inserting 

13 ‘‘subsection (e)(6)’’; and 

14 (B) in paragraph (5)— 

15 (i) in subparagraph (A)(i) by striking 

16 ‘‘subsection (g)(1)(A)(iv)(II)’’ and insert17 ing ‘‘paragraph (1)(A)(iv)(II)’’; 

18 (ii) in subparagraph (B)(iii) by strik19 ing ‘‘subsection (h)(5)’’ and inserting 

20 ‘‘subsection (d)(5)’’; 

21 (iii) in subparagraph (C) by striking 

22 ‘‘subsection (h)(2)(B)’’ and inserting ‘‘sub23 section (d)(2)(B)’’; and 


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1 (iv) in subparagraph (D) by striking 

2 ‘‘subsection (h)(5)’’ and inserting ‘‘sub3 section (d)(5)’’; 

4 (3) subsection (d) (as redesignated by sub5 section (a)(4) of this section)— 

6 (A) in paragraph (1)(A) by striking ‘‘sub7 section (g)(1)’’ and inserting ‘‘subsection 

8 (c)(1)’’; 

9 (B) in paragraph (3)— 

10 (i) in subparagraph (A) by striking 

11 ‘‘subsection (g)(1)’’ and inserting ‘‘sub12 section (c)(1)’’; and 

13 (ii) in subparagraph (B)(i)(II) by 

14 striking ‘‘subsection (i)(1)’’ and inserting 

15 ‘‘subsection (e)(1)’’; 

16 (C) in paragraph (5)(A) by striking ‘‘sub17 section (k)’’ and inserting ‘‘subsection (g)’’; and 

18 (D) in paragraph (6) by striking ‘‘sub19 section (k)’’ each place it appears and inserting 

20 ‘‘subsection (g)’’; 

21 (4) in subsection (e) (as redesignated by sub22 section (a)(4) of this section)— 

23 (A) in paragraph (3) by striking ‘‘sub24 section (g)(1)’’ and inserting ‘‘subsection 

25 (c)(1)’’; 


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1 (B) in paragraph (4) by striking ‘‘sub2 section (h)’’ and inserting ‘‘subsection (d)’’; and 

3 (C) in paragraph (6) by striking ‘‘sub4 section (k)’’ and inserting ‘‘subsection (g)’’; 

5 (5) in subsection (f) (as redesignated by sub6 section (a)(4) of this section)— 

7 (A) in paragraph (1)— 

8 (i) by striking ‘‘subsection (g)(1)’’ and 

9 inserting ‘‘subsection (c)(1)’’; and 

10 (ii) by striking ‘‘subsection (h) or (i)’’ 

11 and inserting ‘‘subsection (d) or (e)’’; 

12 (B) in paragraph (2)— 

13 (i) in the matter preceding subpara14 graph (A) by striking ‘‘subsections (h) and 

15 (i)’’ and inserting ‘‘subsections (d) and 

16 (e)’’; 

17 (ii) in subparagraph (A) by striking 

18 ‘‘subsection (h)’’ and inserting ‘‘subsection 

19 (d)’’; and 

20 (iii) in subparagraph (B) by striking 

21 ‘‘subsection (i)’’ and inserting ‘‘subsection 

22 (e)’’; and 

23 (C) in paragraph (3)— 

24 (i) in subparagraph (B)— 


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1 (I) in clause (i) by striking ‘‘sub2 section (g)(1)’’ and inserting ‘‘sub3 section (c)(1)’’; and 

4 (II) in clause (ii) by striking 

5 ‘‘subsection (h) or (i)’’ and inserting 

6 ‘‘subsection (d) or (e)’’; and 

7 (ii) in subparagraph (C) by striking 

8 ‘‘subsection (h) or (i)’’ and inserting ‘‘sub9 section (d) or (e)’’; 

10 (6) in subsection (h) (as redesignated by sub11 section (a)(4) of this section) by striking ‘‘sub12 sections (h) and (i)’’ and inserting ‘‘subsection (d) 

13 or (e)’’; 

14 (7) in subsection (i) (as redesignated by sub15 section (a)(4) of this section)— 

16 (A) in paragraph (1)— 

17 (i) by striking ‘‘subsections (h) and 

18 (i)’’ and inserting ‘‘subsections (d) and 

19 (e)’’; and 

20 (ii) by striking ‘‘subsection (h)’’ and 

21 inserting ‘‘subsection (d)’’; and 

22 (B) in paragraph (2)— 

23 (i) in the matter preceding subpara24 graph (A) by striking ‘‘subsection (i)’’ and 

25 inserting ‘‘subsection (e)’’; 


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1 (ii) in subparagraph (A) by striking 

2 ‘‘subsections (h) and (i)’’ and inserting 

3 ‘‘subsections (d) and (e)’’; and 

4 (iii) in subparagraph (B)— 

5 (I) by striking ‘‘subsection (h)’’ 

6 and inserting ‘‘subsection (d)’’; and 

7 (II) by striking ‘‘subsection (i)’’ 

8 and inserting ‘‘subsection (e)’’; 

9 (8) in subsection (l) (as redesignated by sub10 section (a)(4) of this section)— 

11 (A) in paragraph (1) by striking ‘‘sub12 section (g)(2), (h), or (i)’’ and inserting ‘‘sub13 section (c)(2), (d), or (e)’’; 

14 (B) in paragraph (2) by striking ‘‘sub15 section (h) or (i)’’ and inserting ‘‘subsection (d) 

16 or (e)’’; and 

17 (C) in paragraph (3)— 

18 (i) by striking ‘‘subsection 

19 (g)(1)(A)(iv), (g)(2)(E), (g)(4), or (g)(5)’’ 

20 and inserting ‘‘subsection (c)(1)(A)(iv), 

21 (c)(2)(E), (c)(4), or (c)(5)’’; and 

22 (ii) by striking ‘‘subsection (h)’’ and 

23 inserting ‘‘subsection (d)’’; 


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1 (9) in subsection (n) (as redesignated by sub2 section (a)(4) of this section) by striking ‘‘subsection 

3 (g)(1)’’ and inserting ‘‘subsection (c)(1)’’; and 

4 (10) in subsection (o) (as redesignated by sub5 section (a)(4) of this section) by striking ‘‘sub6 sections (b), (c) and (d)’’ and inserting ‘‘subsections 

7 (b), (c), and (d) of section 5404’’. 

8 SEC. 3. CONTRACTS FOR FOREIGN AND INTERSTATE AIR 

9 TRANSPORTATION. 

10 (a) IN GENERAL.—At the end of chapter 54 of title 

11 39, United States Code, add the following: 

12 ‘‘§ 5404. Contracts for foreign and interstate air 

13 transportation 

14 ‘‘(a) DEFINITIONS.—In this section— 

15 ‘‘(1) the terms ‘air carrier’, ‘foreign air carrier’, 

16 ‘foreign air transportation’, and ‘interstate air trans17 portation’ have the meanings given such terms in 

18 section 40102(a) of title 49; 

19 ‘‘(2) the term ‘certificated air carrier’ means an 

20 air carrier that holds a certificate of public conven21 ience and necessity issued under section 41102(a) of 

22 title 49; 

23 ‘‘(3) the term ‘code-share relationship’ means a 

24 relationship pursuant to which any certificated air 

25 carrier or foreign air carrier’s designation code is 


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1 used to identify a flight operated by another air car2 rier or foreign air carrier; and 

3 ‘‘(4) the term ‘Secretary’ means the Secretary 

4 of Transportation. 

5 ‘‘(b) INTERNATIONAL MAIL.— 

6 ‘‘(1) IN GENERAL.— 

7 ‘‘(A) USE OF CERTIFICATED AIR CAR8 RIERS; CODE-SHARE RELATIONSHIPS.—Except 

9 as otherwise provided in this subsection, the 

10 Postal Service may contract for the transpor11 tation of mail by aircraft between any of the 

12 points in foreign air transportation only with 

13 certificated air carriers. A contract may be 

14 awarded to a certificated air carrier to trans15 port mail by air between any of the points in 

16 foreign air transportation that the Secretary 

17 has authorized the carrier to serve either di18 rectly or through a code-share relationship with 

19 1 or more foreign air carriers. 

20 ‘‘(B) USE OF FOREIGN AIR CARRIERS.—If 

21 the Postal Service has sought offers or pro22 posals from certificated air carriers to transport 

23 mail in foreign air transportation between 

24 points, or pairs of points within a geographic 

25 region or regions, and has not received offers or 


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1 proposals that meet Postal Service requirements 

2 at a fair and reasonable price from at least 2 

3 such carriers, the Postal Service may seek of4 fers or proposals from foreign air carriers. 

5 Where service in foreign air transportation 

6 meeting the Postal Service’s requirements is 

7 unavailable at a fair and reasonable price from 

8 at least 2 certificated air carriers, either di9 rectly or through a code-share relationship with 

10 1 or more foreign air carriers, the Postal Serv11 ice may contract with foreign air carriers to 

12 provide the service sought if, when the Postal 

13 Service seeks offers or proposals from foreign 

14 air carriers, it also seeks an offer or proposal 

15 to provide that service from any certificated air 

16 carrier providing service between those points, 

17 or pairs of points within a geographic region or 

18 regions, on the same terms and conditions that 

19 are being sought from foreign air carriers. 

20 ‘‘(C) METHODOLOGY FOR DETERMINING

21 FAIR AND REASONABLE PRICES.—For purposes 

22 of this subsection, the Postal Service shall use 

23 a methodology for determining fair and reason24 able prices for the Postal Service designated re25 gion or regions developed in consultation with, 


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1 and with the concurrence of, certificated air 

2 carriers representing at least 51 percent of 

3 available ton miles in the markets of interest. 

4 ‘‘(D) CEILING PRICES.—For purposes of 

5 this subsection, ceiling prices determined pursu6 ant to the methodology used under subpara7 graph (C) shall be presumed to be fair and rea8 sonable if they do not exceed the ceiling prices 

9 derived from— 

10 ‘‘(i) a weighted average based on mar11 ket rate data furnished by the Inter12 national Air Transport Association or a 

13 subsidiary unit thereof; or 

14 ‘‘(ii) if such data are not available 

15 from those sources, such other neutral, 

16 regularly updated set of weighted average 

17 market rates as the Postal Service, with 

18 the concurrence of certificated air carriers 

19 representing at least 51 percent of avail20 able ton miles in the markets of interest, 

21 may designate. 

22 ‘‘(E) SITUATIONS IN WHICH CONCUR23 RENCE CANNOT BE ATTAINED.—If, for pur24 poses of subparagraph (D)(ii), concurrence can25 not be attained, the most recently available 


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1 market rate data described in this paragraph 

2 shall continue to apply for the relevant market 

3 or markets. 

4 ‘‘(2) CONTRACT PROCESS.—The Postal Service 

5 shall contract for foreign air transportation as set 

6 forth in paragraph (1) through an open procurement 

7 process that will provide— 

8 ‘‘(A) potential offerors with timely notice 

9 of business opportunities in sufficient detail to 

10 allow them to make a proposal; 

11 ‘‘(B) requirements, proposed terms and 

12 conditions, and evaluation criteria to potential 

13 offerors; and 

14 ‘‘(C) an opportunity for unsuccessful 

15 offerors to receive prompt feedback upon re16 quest. 

17 ‘‘(3) EMERGENCY OR UNANTICIPATED CONDI18 TIONS; INADEQUATE LIFT SPACE.—The Postal Serv19 ice may enter into contracts to transport mail by air 

20 in foreign air transportation with a certificated air 

21 carrier or a foreign air carrier without complying 

22 with the requirements of paragraph (1) or (2) if— 

23 ‘‘(A) emergency or unanticipated condi24 tions exist that make it impractical for the 


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1 Postal Service to comply with such require2 ments; or 

3 ‘‘(B) the Postal Service’s demand for lift 

4 exceeds the space available to the Postal Service 

5 under existing contracts and— 

6 ‘‘(i) there is insufficient time available 

7 to seek additional lift using procedures 

8 that comply with those requirements with9 out compromising the Postal Service’s 

10 service commitments to its own customers; 

11 and 

12 ‘‘(ii) the Postal Service first offers 

13 any certificated air carrier holding a con14 tract to carry mail between the relevant 

15 points the opportunity to carry such excess 

16 volumes under the terms of its existing 

17 contract. 

18 ‘‘(c) GOOD-FAITH EFFORT REQUIRED.—The Postal 

19 Service and potential offerors shall put a good-faith effort 

20 into resolving disputes concerning the award of contracts 

21 made under subsection (b). 

22 ‘‘(d) SPECIAL CIRCUMSTANCES.—If the Postal Serv23 ice determines that service by certificated air carriers or 

24 combination of air carriers between any pair or pairs of 

25 points in foreign air transportation is not adequate for its 


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1 purposes, the Postal Service may contract, without adver2 tising for bids, in such manner and under such terms and 

3 conditions as the Postal Service may deem appropriate, 

4 with any air taxi operator or combination thereof for such 

5 air transportation service. Contracts made under this sub6 section may be renewed at the existing rate by mutual 

7 agreement between the holder and the Postal Service. The 

8 Postal Service, with the consent of the air taxi operator, 

9 may adjust the compensation under such contracts for in10 creased or decreased costs occasioned by changed condi11 tions occurring during the contract term. The Postal Serv12 ice shall cancel such a contract when the Secretary author13 izes an additional certificated carrier or carriers to provide 

14 service between any pair or pairs of points covered by the 

15 contract, and such carrier or carriers inaugurate schedules 

16 adequate for its purposes. 

17 ‘‘(e) TRANSPORTATION OF MAIL BY AIRCRAFT IN

18 INTERSTATE AIR TRANSPORTATION.— 

19 ‘‘(1) DETERMINATION OF RATES AND CON20 TRACT TERMS.—The Postal Service may determine 

21 rates and contract with any air carrier for the trans22 portation of mail by aircraft in interstate air trans23 portation either through negotiations or competitive 

24 bidding. 

25 ‘‘(2) MAIL SHIPMENTS OF LIVE ANIMALS.— 


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1 ‘‘(A) IN GENERAL.—In the exercise of its 

2 authority under paragraph (1), the Postal Serv3 ice may require any air carrier to accept mail 

4 shipments of day-old poultry, honeybees, and 

5 such other live animals as postal regulations 

6 allow to be transmitted as mail matter. The au7 thority of the Postal Service under this sub8 paragraph shall not apply in the case of any air 

9 carrier who commonly and regularly refuses to 

10 accept any live animals as cargo. 

11 ‘‘(B) SURCHARGES.—Notwithstanding any 

12 other provision of law, the Postal Service is au13 thorized to assess, as postage to be paid by the 

14 mailers of any shipments covered by subpara15 graph (A), a reasonable surcharge that the 

16 Postal Service determines in its discretion to be 

17 adequate to compensate air carriers for any 

18 necessary additional expense incurred in han19 dling such shipments. 

20 ‘‘(f) APPLICABILITY TO POINTS WITHIN ALASKA.— 

21 The authority of the Secretary and the Postal Service 

22 under subsections (b), (c), and (d), as in effect on Sep23 tember 30, 2008, shall also apply, and the authority of 

24 the Postal Service under subsection (e) shall not apply, 

25 to the transportation of mail by aircraft between any 2 


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1 points both of which are within the State of Alaska and 

2 between which the air carrier is authorized by the Sec3 retary to engage in the transportation of mail.’’. 

4 (b) CLERICAL AMENDMENT.—The table of sections 

5 for chapter 54 of such title is amended by adding at the 

6 end the following: 

‘‘5404. Contracts for foreign and interstate air transportation.’’. 

7 SEC. 4. REDUCTION OF ALASKA BYPASS MAIL SUBSIDY. 

8 (a) IN GENERAL.—Chapter 54 of title 39, United 

9 States Code (as amended by this Act), is further amended 

10 by adding at the end the following: 

11 ‘‘§ 5405. Reduction of Alaska bypass mail subsidy 

12 ‘‘(a) COMPETITIVE PRODUCT CLASSIFICATION.— 

13 ‘‘(1) IN GENERAL.—Except as provided in this 

14 section, Alaska bypass mail service under section 

15 5402 shall be treated as a separate competitive 

16 product for all purposes. 

17 ‘‘(2) TRANSFER PROHIBITED.—No part of 

18 Alaska bypass mail service may be transferred to the 

19 market-dominant category of mail under section 

20 3642. 

21 ‘‘(3) LIMITATIONS.—Alaska bypass mail service 

22 shall not be treated as a competitive product for 

23 purposes of the implementation of sections 3633(a) 

24 and 3634. 

25 ‘‘(b) MINIMUM COST COVERAGE.— 


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1 ‘‘(1) IN GENERAL.—The Postal Service shall es2 tablish and maintain rates and fees for matter sent 

3 by Alaska bypass mail service— 

4 ‘‘(A) for fiscal year 2015, that cover at 

5 least 30 percent of the costs attributable to 

6 Alaska bypass mail service in that fiscal year; 

7 ‘‘(B) for fiscal year 2016, that cover at 

8 least 34 percent of the costs attributable to 

9 Alaska bypass mail service in that fiscal year; 

10 ‘‘(C) for fiscal year 2017, that cover at 

11 least 38 percent of the costs attributable to 

12 Alaska bypass mail service in that fiscal year; 

13 ‘‘(D) for fiscal year 2018, that cover at 

14 least 42 percent of the costs attributable to 

15 Alaska bypass mail service in that fiscal year; 

16 ‘‘(E) for fiscal year 2019, that cover at 

17 least 46 percent of the costs attributable to 

18 Alaska bypass mail service in that fiscal year; 

19 and 

20 ‘‘(F) for fiscal year 2020, and for each fis21 cal year thereafter, that cover at least 50 per22 cent of the costs attributable to Alaska bypass 

23 mail service in that fiscal year. 

24 ‘‘(2) COSTS ATTRIBUTABLE.—The costs attrib25 utable to Alaska bypass mail service for a fiscal year 


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1 shall include all the direct and indirect costs of Alas2 ka bypass mail service during that fiscal year that 

3 are attributable to that service through reliably iden4 tified causal relationships. 

5 ‘‘(3) INSTITUTIONAL COSTS.—Costs that can be 

6 attributed to Alaska bypass mail service may not be 

7 classified as institutional costs of the Postal Service. 

8 ‘‘(4) RATE INCREASE LIMITATION.—For fiscal 

9 years 2014 through 2020, no rate for any type of 

10 Alaska bypass mail service may be increased in a fis11 cal year by more than the maximum permitted rate 

12 increase for market dominant products plus an addi13 tional 1 percent. 

14 ‘‘(c) COMPLIANCE.— 

15 ‘‘(1) ANNUAL REVIEW.—At least once each fis16 cal year, the Postal Regulatory Commission shall de17 termine whether the Postal Service is in compliance 

18 with the requirements under subsection (b). 

19 ‘‘(2) REMEDIAL ACTIONS.—If, under paragraph 

20 (1), the Postal Regulatory Commission determines 

21 that the Postal Service has not complied with the re22 quirements under subsection (b) with respect to a 

23 fiscal year, the Commission shall prescribe, not later 

24 than 60 days after making such determination, ac25 tions to ensure— 


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1 ‘‘(A) the establishment and maintenance of 

2 rates and fees for Alaska bypass mail service 

3 that recover any costs required to have been 

4 covered for such fiscal year under subsection 

5 (b), but that were not covered, by the date that 

6 is not later than the last day of the fiscal year 

7 that follows such fiscal year; and 

8 ‘‘(B) compliance with the requirements 

9 under subsection (b) in subsequent fiscal years. 

10 ‘‘(3) LIMITATION.—The Postal Regulatory 

11 Commission may not order the Postal Service to dis12 continue Alaska bypass mail service. 

13 ‘‘(4) REGULATIONS.—Not later than 90 days 

14 after the date of enactment of this subsection, the 

15 Postal Regulatory Commission shall issue regula16 tions to implement this subsection.’’. 

17 (b) CLERICAL AMENDMENT.—The table of sections 

18 for chapter 54 of such title (as amended by this Act) is 

19 further amended by adding at the end the following: 

‘‘5405. Reduction of Alaska bypass mail subsidy.’’. 

Æ 


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