sent was received to the applicable new pri-
mary mode of mail delivery; and 
‘‘(iii) following the conversion of an 
address unit, ensure that the primary 
mode of mail delivery for any new resi-
dents to the address unit is the converted 
primary mode of mail, regardless of the 
primary mode of mail delivery for the pre-
vious occupant. 
‘‘(E) Any delivery point created pursuant 
to subsection (c)(2) shall be automatically and 
irrevocably deemed to consent to delivery con-
version if the delivery point is established with-
in, or later becomes a part of, an address unit 
that is proposed for conversion to a different 
primary mode of mail delivery. 
‘‘(f) CONSIDERATIONS.—In making a determination 
to convert the primary mode of mail delivery under this 
section, the Postal Service shall consider— 
‘‘(1) the impact of weather conditions, physical 
barriers, or any other factor that may impact the 
feasibility of providing a primary mode of mail deliv-
ery other than door delivery (such as a factor that 
may significantly reduce the potential cost savings 
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associated with providing centralized delivery or 
curbside delivery); 
‘‘(2) whether the address is in a registered his-
toric district (as that term is defined in section 
47(c)(3)(B) of the Internal Revenue Code of 1986), 
is listed on the National Register of Historic Places, 
is designated as a National Historic Landmark, or 
is of historic value; and 
‘‘(3) population density and the concentration 
of poverty. 
‘‘(g) WAIVER FOR PHYSICAL HARDSHIP.— 
‘‘(1) IN GENERAL.—The Postal Service shall es-
tablish and maintain a waiver program under which, 
upon application, door delivery may be continued, or 
provided, for a delivery point identified under sub-
section (d)(1) or (e)(1) at no cost to the applicant 
in any case in which— 
‘‘(A) centralized delivery, curbside delivery, 
or sidewalk delivery would, but for this para-
graph, otherwise be the primary mode of mail 
delivery; and 
‘‘(B) door delivery is necessary in order to 
avoid causing significant physical hardship or 
physical safety risks to a postal patron. 
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‘‘(2) TREATMENT OF WAIVER.—An address re-
ceiving door delivery pursuant to a waiver under this 
subsection— 
‘‘(A) shall be counted, for purposes of the 
reporting requirement under subsection (j), as 
an address that receives the primary mode of 
mail delivery which the address would be sub-
ject to if not for the waiver; and 
‘‘(B) shall, not later than 60 days after 
ceasing to meet the requirements of paragraph 
(1), be converted to the primary mode of mail 
delivery which is otherwise applicable. 
‘‘(h) PROCEDURES.—In carrying out conversions 
under this section, the Postal Service shall establish proce-
dures to— 
‘‘(1) solicit, consider, and respond to input from 
the general public, postal patrons, State and local 
governments, local associations, and property own-
ers; 
‘‘(2) calculate and make publicly accessible the 
cost or savings of the conversion to the Postal Serv-
ice as well as the average conversion cost or savings 
to each postal patron and any cost or savings to the 
State and local government; and 
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‘‘(3) place centralized delivery points in loca-
tions that maximize delivery efficiency, ease of use 
for postal patrons, and respect for private property 
rights. 
‘‘(i) VOUCHER PROGRAM.—The Postal Service shall 
provide for a voucher program under which, upon applica-
tion, the Postal Service may defray all or any portion of 
the costs of new mail receptacles associated with conver-
sion from door delivery under this section which would 
otherwise be borne by postal patrons. 
‘‘(j) ANNUAL REPORT.—Not later than 60 days after 
the end of each of fiscal years 2019 through 2023, the 
Postal Service shall submit to Congress and the Inspector 
General a report on the implementation of this section 
during the most recently completed fiscal year. Each such 
report shall include— 
‘‘(1) the number of residential and business ad-
dresses that— 
‘‘(A) receive door delivery as of the end of 
the fiscal year preceding the most recently com-
pleted fiscal year; 
‘‘(B) receive door delivery as of the end of 
the most recently completed fiscal year; and 
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‘‘(C) during the most recently completed 
fiscal year, were converted from door delivery 
to— 
‘‘(i) centralized delivery; 
‘‘(ii) curbside delivery; and 
‘‘(iii) any other primary mode of mail 
delivery; 
‘‘(2) the estimated cost savings from the con-
versions described in paragraph (1)(C); 
‘‘(3) a description of the progress made by the 
Postal Service toward meeting the requirements of 
the phaseout under subsection (c); and 
‘‘(4) any other information which the Postal 
Service considers appropriate. 
‘‘(k) INSPECTOR GENERAL AUDIT.—The Inspector 
General shall issue an annual audit report on the imple-
mentation of this section not later than 90 days after the 
date on which the Postal Service releases its annual report 
under subsection (j). Such report shall include— 
‘‘(1) an audit of the data contained in the Post-
al Service’s report under subsection (j); and 
‘‘(2) an evaluation of the Postal Service’s imple-
mentation of the voucher program under subsection 
(i). 
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‘‘(l) REVIEW.—Subchapters IV and V shall not apply 
with respect to any action taken by the Postal Service 
under this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 36 of title 39, United States Code, is amended 
by adding after the item relating to section 3691 the fol-
lowing: 
‘‘3692. Delivery-point modernization.’’. 
(c) UPDATED DELIVERY COST DATA.— 
(1) STUDY.—Not later than 180 days after the 
date of the enactment of this Act, the Postal Service 
shall begin to collect data on delivery mode costs and 
the potential savings of converting to more cost-effi-
cient primary modes of mail delivery. 
(2) REPORT.—Not later than 2 years after the 
date of enactment of this Act, the Postal Service 
shall submit to the Committee on Oversight and 
Government Reform of the House of Representatives 
and the Committee on Homeland Security and Gov-
ernmental Affairs of the Senate a report describing 
the findings of the study conducted under paragraph 
(1). 
(d) INSPECTOR GENERAL REVIEW OF COSTS AND 
BENEFITS OF DELIVERY POINT CONVERSIONS.— 
(1) STUDY.—Not later than 2 years after the 
date on which the Postal Service commences delivery 
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point conversions pursuant to subsections (d)(2) and 
(e)(2) of section 3692 of title 39, United States 
Code (as added by subsection (a)), and not later 
than 3 years thereafter, the Inspector General of the 
Postal Community shall conduct a study of the costs 
and benefits of such conversions. 
(2) REPORT.—Not later than 1 year after the 
date on which the Inspector General conducts each 
study required under paragraph (1), the Inspector 
General shall submit to the Committee on Homeland 
Security and Governmental Affairs of the Senate 
and the Committee on Oversight and Government 
Reform of the House of Representatives a report on 
the results of each study. 
(3) CONTENT.—The studies required under 
paragraph (1) shall assess the following: 
(A) The cost savings realized by the Postal 
Service from the conversions under subsections 
(d)(2) and (e)(2) of section 3692 of title 39, 
United States Code (as added by subsection 
(a)), and the projected cost savings the Postal 
Service is likely to realize from full implementa-
tion of such conversions. 
(B) The expenses incurred by the Postal 
Service to achieve such conversions and the pro-
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jected expenses the Postal Service is likely to 
incur from full implementation of such conver-
sions. 
(C) The impact of the conversions on— 
(i) read and response rates to mailed 
advertising; 
(ii) advertising mail revenue earned by 
the Postal Service; 
(iii) small businesses, including small 
home-based businesses; and 
(iv) mail volumes shipped through the 
Postal Service. 
(D) Any other factors the Inspector Gen-
eral considers relevant to provide a complete 
analysis of the costs and benefits associated 
with the conversions described under such sub-
sections. 
(4) NET
COST
BENEFIT
ANALYSIS.—The In-
spector General shall conduct a cost benefit analysis 
to determine the net cost or benefit to the Postal 
Service of the conversions conducted under such 
subsections and include the analysis in each report 
submitted under paragraph (2). 
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SEC. 203. MODERNIZING POSTAL RATES. 
(a) ADEQUACY, EFFICIENCY, AND FAIRNESS
OF 
POSTAL RATES.— 
(1) OBJECTIVES.—Section 3622(b) of title 39, 
United States Code, is amended— 
(A) in paragraph (2), by inserting ‘‘and 
ensure’’ after ‘‘create’’; 
(B) in paragraph (3)— 
(i) by inserting ‘‘and meet’’ after 
‘‘maintain’’; and 
(ii) by inserting ‘‘, with a focus on 
achieving predictable and consistent deliv-
ery’’ before the period at the end; 
(C) in paragraph (5), by inserting ‘‘estab-
lish and’’ before ‘‘maintain’’; 
(D) in paragraph (6), by striking ‘‘proc-
ess’’ and inserting ‘‘and cost attribution proc-
esses’’; and 
(E) in paragraph (9), by inserting ‘‘(and to 
ensure appropriate levels of transparency)’’ be-
fore the period at the end. 
(2) FACTORS.—Section 3622(c) of title 39, 
United States Code, is amended to read as follows: 
‘‘(c) FACTORS.—In establishing or revising such sys-
tem, the Postal Regulatory Commission shall take into ac-
count the following factors: 
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‘‘(1) The effect of rate increases upon the gen-
eral public and business mail users. 
‘‘(2) The available alternative means of sending 
and receiving written communications, information, 
and letters and other mail matter at reasonable 
costs. 
‘‘(3) The reliability of delivery timelines and the 
extent to which the Postal Service is meeting its 
service standard obligations. 
‘‘(4) The need to ensure that the Postal Service 
has adequate revenues and has taken appropriate 
cost-cutting measures to maintain financial stability 
and meet all legal obligations. 
‘‘(5) The extent to which the Postal Service has 
taken actions to increase its efficiency and reduce its 
costs. 
‘‘(6) The value of the mail service actually pro-
vided by each class or type of mail service to both 
the sender and the recipient, including the collection, 
mode of transportation, and priority of delivery. 
‘‘(7) The requirement that each class of mail or 
type of mail service bear the direct and indirect 
postal costs attributable to each class or type of mail 
service through reliably identified causal relation-
ships plus that portion of all other costs of the Post-
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al Service reasonably assignable to such class or 
type. 
‘‘(8) The degree of preparation of mail for de-
livery into the postal system performed by the mailer 
and its effect upon improving efficiency and reduc-
ing costs to the Postal Service. 
‘‘(9) Simplicity of structure for the entire 
schedule and simple, identifiable relationships be-
tween the rates or fees charged the various classes 
of mail for postal services. 
‘‘(10) The importance of pricing flexibility to 
encourage increased mail volume and operational ef-
ficiency. 
‘‘(11) The relative value to postal users of the 
kinds of mail matter entered into the postal system 
and the desirability and justification for special clas-
sifications and services of mail. 
‘‘(12) The importance of providing classifica-
tions with extremely high degrees of reliability and 
speed of delivery and of providing those that do not 
require high degrees of reliability and speed of deliv-
ery. 
‘‘(13) The desirability of special classifications 
for both postal users and the Postal Service in ac-
cordance with the policies of this title, including 
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to the institutional costs of the Postal Service, defined as 
reimbursement by each agency that covers at least 100 
percent of the attributable costs of all property and service 
provided by the Postal Service in each year to such agency. 
‘‘(b) 
APPLICATION
OF
REPORTING
REQUIRE-
MENTS.—For purposes of the reporting requirements 
under section 3705, the Postal Service shall submit a sep-
arate report for each agreement with an agency entered 
into under subsection (a) analyzing the costs, revenues, 
rates, and quality of service for the provision of all services 
under such agreement, including information dem-
onstrating that the agreement satisfies the requirements 
of subsection (a). 
‘‘§ 3705. Transparency and accountability for non-
postal services 
‘‘(a) ANNUAL REPORT TO THE COMMISSION.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the last day of each year, the Postal Service 
shall submit to the Postal Regulatory Commission a 
report that analyzes costs, revenues, rates, and qual-
ity of service for each agreement for the provision of 
property and services under this chapter, using such 
methodologies as the Commission may prescribe, and 
in sufficient detail to demonstrate compliance with 
the requirements of this chapter. 
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