I 113th CONGRESS 1st Session H. R. 2690 IN THE HOUSE OF REPRESENTATIVES July 16, 2013 Mr. Cummings (for himself, Mr. Lynch , Mr. Tierney , Mr. Connolly , Ms. Speier , Ms. Norton , Mr. Danny K. Davis of Illinois , and Ms. Kelly of Illinois ) introduced the following bill; which was referred to the Committee on Oversight and Government Reform , and in addition to the Committee on the Judiciary , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To enhance the long-term profitability of the United States Postal Service through enhanced innovation, operational flexibility, workforce realignment, and regulatory relief.

1. Short title; table of contents; references (a) Short title This Act may be cited as the Innovate to Deliver Act of 2013 . (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; table of contents; references. Title I—POSTAL SERVICE PROFITABILITY AND REVENUE-GENERATING ENHANCEMENTS Subtitle A—Postal Service Products and Pricing Sec. 101. USPS innovation officer and accountability. Sec. 102. Authority to offer nonpostal services. Sec. 103. Requirement that market-dominant products cover attributable costs. Sec. 104. PRC to revisit CPI cap instituted under PAEA. Sec. 105. Enhanced product innovation. Sec. 106. Authority to ship beer, wine and distilled spirits. Sec. 107. Repeal of uniform rate for books, films, and other materials. Subtitle B—Postal Service Management Sec. 108. USPS balanced budget minimum requirement. Sec. 109. Reporting requirement for Board of Governors and Postal Regulatory Commissioners. Sec. 110. Restrictions on postal service executive compensation. Sec. 111. Investment of competitive product moneys. Title II—POSTAL SERVICE WORKFORCE REALIGNMENT AND RIGHT-SIZING Sec. 201. Separate normal-cost percentage recalculation of Federal Employees Retirement System. Sec. 202. Treatment of surplus contributions to Federal Employees Retirement System. Sec. 203. Sense of Congress. Sec. 204. Contributions to Thrift Savings Fund of voluntary separation incentive payments. Sec. 205. Service credit contributions of voluntary separation incentive payments. Sec. 206. Modification of prepayment schedule relating to Postal Service Retiree Health Benefits Fund. Sec. 207. Study on USPS workforce realignment and right-sizing options. Sec. 208. Applicability of provisions relating to reductions in force. Sec. 209. Enhanced reporting on facility network initiatives. Title III—POSTAL SERVICE IMPROVEMENTS AND REGULATORY RELIEF Sec. 301. Permit appeal rights for closing of postal stations and branches. Sec. 302. Intra-agency cooperative agreements. Sec. 303. Grouping of negotiated service agreements. Sec. 304. Simplification of process for classification of competitive products. Sec. 305. Development of new market-dominant classes of mail. Sec. 306. Expedited consideration of service changes by PRC. (c) References Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 39, United States Code. I POSTAL SERVICE PROFITABILITY AND REVENUE-GENERATING ENHANCEMENTS A Postal Service Products and Pricing 101. USPS innovation officer and accountability (a) In general Chapter 2 is amended by adding at the end the following: 209. USPS innovation officer and accountability (a) In general There shall be in the Postal Service a Chief Innovation Officer selected by the Postmaster General who shall have proven expertise and a record of success in 1 or more of the following: postal and shipping industry, innovation product research and development, marketing brand strategy, emerging communications technology, or business process management. The Chief Innovation Officer shall manage the Postal Service’s development and implementation of innovative postal and nonpostal products and services. (b) Duties The Chief Innovation Officer shall have as primary duties— (1) leading the development of innovative nonpostal products and services that will maximize revenue to the Postal Service; (2) developing innovative postal products and services, particularly those that utilize emerging information technologies, to maximize revenue to the Postal Service; (3) monitoring the performance of innovative products and services and revising them as needed to meet changing market trends; and (4) taking into consideration comments or advisory opinions, if applicable, issued by the Postal Regulatory Committee prior to the initial sale of innovative postal or nonpostal products and services. (c) Designation (1) Deadline As soon as practicable after the date of enactment of this section, but no later than January 1, 2014, the Postmaster General shall designate a Chief Innovation Officer. (2) Condition Nothing in this section shall be construed to prohibit an individual who holds another office or position in the Postal Service from serving as the Chief Innovation Officer under this chapter. However, upon appointment to the position of the Chief Innovation Officer, such individual may not, while serving in such office, concurrently hold any other office or position in the Postal Service. (d) Innovation strategy (1) In general Not later than 12 months after the date on which the Chief Innovation Officer is designated under subsection (c)(1), the Postmaster 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 comprehensive strategy for maximizing revenues through innovative postal and nonpostal products and services. (2) Matters to be addressed At a minimum, the strategy required by this section shall address— (A) the specific innovative postal and nonpostal products and services to be developed and offered by the Postal Service, including the nature of the market to be filled by each product and service and the likely date by which each product and service will be introduced; (B) the cost of developing and offering each product or service; (C) the anticipated sales volume of each product and service; (D) the anticipated revenues and profits expected to be generated by each product and service; (E) the likelihood of success of each innovative product and service as well as the risks associated with the development and sale of each innovative product and service; (F) the trends anticipated in market conditions that may affect the success of each product and service over the 5-year period beginning on the date such strategy or update is submitted; and (G) the metrics that will be utilized to assess the effectiveness of the innovation strategy. (3) Strategy updates On January 1, 2018, and every 3 years thereafter, the Chief Innovation Officer shall submit an update to the innovation strategy submitted under paragraph (1) to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Postal Regulatory Commission. (e) Report on performance (1) In general The Postmaster General shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Postal Regulatory Commission with the President’s budget submission under section 1105(a) of title 31 a report that details the Postal Service’s progress in implementing the Innovation Strategy. (2) Matters to be addressed At a minimum, the report required by this section shall address— (A) the revenue generated by each product and service developed through the Innovation Strategy and the costs of developing and offering each such product and service for the most recent fiscal year; (B) the total sales volume and revenue generated by each product and service on a monthly basis for the preceding year; (C) trends in the markets filled by each product and service; (D) products and services identified in the Innovation Strategy that are to be discontinued, the date on which the discontinuance will occur, and the reasons for the discontinuance; (E) alterations in products and services identified in the Innovation Strategy that will be made to meet changing market conditions, and an explanation of how these alterations will ensure the success of the products and services; and (F) the performance of the Innovation Strategy according to the metrics identified in subsection (d)(2)(G). (f) Comptroller general (1) In general The Comptroller General shall conduct a study on the implementation of the innovation strategy not later than 4 years after the date of enactment of this section. (2) Contents At a minimum, the Comptroller General shall assess the effectiveness of the Postal Service in identifying, developing, and selling innovative postal and nonpostal products and services. The study shall also include— (A) an audit of the costs of developing each innovative postal and nonpostal product and service developed or offered by the Postal Service during the period beginning on the date of enactment of this section and ending 4 years after such date; (B) the sales volume of each such product and service; (C) the revenues and profits generated by each such product and service; and (D) the likelihood of continued success of each such product and service. (3) Submission The results of the study required under this subsection shall be submitted 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. . (b) Clerical amendment The table of sections at the beginning of chapter 2 is amended by adding at the end the following: 209. USPS innovation officer and accountability. . 102. Authority to offer nonpostal services (a) Specific power Section 404(a) is amended— (1) in paragraph (7), by striking and at the end; (2) in paragraph (8), by striking the period and inserting ; and ; and (3) by adding at the end the following: (9) to provide nonpostal services in accordance with subsection (e). . (b) Nonpostal services Section 404(e) is amended to read as follows: (e) (1) The Postal Service may provide nonpostal services that use the processing, transportation, delivery, retail network, technology, or other resources of the Postal Service in a manner consistent with the public interest. (2) At least 90 days before offering new nonpostal services, the Postal Service shall request an advisory opinion from the Postal Regulatory Commission that evaluates the extent to which the provision of such nonpostal services— (A) would use the processing, transportation, delivery, retail network, technology, or other resources of the Postal Service; and (B) would be consistent with the public interest. (3) Within 45 days after receiving the request under paragraph (2), the Postal Regulatory Commission— (A) shall issue its advisory opinion to the Postal Service; and (B) shall transmit a copy of such opinion, together with the original request, to— (i) the Committee on Oversight and Government Reform of the House of Representatives; and (ii) the Committee on Homeland Security and Governmental Affairs of the Senate. (4) For purposes of this title, the term nonpostal services means services and products other than postal services as defined in section 102(5), including— (A) check-cashing services; (B) new technology and media services; (C) warehousing and logistics; (D) facility leasing; and (E) public internet access services. . 103. Requirement that market-dominant products cover attributable costs (a) Repeal Paragraph (2) of section 3622(c) is repealed. (b) Each class To bear attributable costs Section 3622(d)(1) is amended— (1) by redesignating subparagraphs (A) through (E) as subparagraphs (B) through (F); (2) by inserting before subparagraph (B) (as so redesignated by paragraph (1)) the following: (A) require that each class or type of mail service shall bear the direct and indirect postal costs attributable to such class or type through reliably identified causal relationships plus that portion of all other costs of the Postal Service reasonably assignable to such class or type; ; and (3) in subparagraph (B) (as so redesignated by paragraph (1)) by inserting , excluding changes required to satisfy subparagraph (A), before to be set . 104. PRC to revisit CPI cap instituted under PAEA Section 3622 is amended— (1) in subsection (c)— (A) in paragraph (13), by striking and at the end; (B) by redesignating paragraph (14) as paragraph (15); and (C) by inserting after paragraph (13) the following: (14) the value to the Postal Service of having pricing flexibility that would apply a price cap across all classes of market dominant products in comparison to a class-based price cap; and ; and (2) in subsection (d)(3), by striking Ten and inserting Seven . 105. Enhanced product innovation (a) Dollar-Amount limitation relating to market tests of experimental products Section 3641(e)(1) is amended by striking $10,000,000 and inserting $50,000,000 . (b) Dollar-Amount limitation relating to exemption authority Section 3641(e)(2) is amended by striking $50,000,000 and inserting $100,000,000 . 106. Authority to ship beer, wine and distilled spirits (a) Mailability (1) Nonmailable articles Section 1716(f) of title 18, United States Code, is amended by striking mails and inserting mails, except to the extent that the mailing is allowable under section 3001(p) of title 39 . (2) Application of laws Section 1161 of title 18, United States Code, is amended, by inserting , and, with respect to the mailing of distilled spirits, wine, or malt beverages (as those terms are defined in section 117 of the Federal Alcohol Administration Act ( 27 U.S.C. 211 )), is in conformity with section 3001(p) of title 39 after Register . (b) Regulations Section 3001 of title 39, United States Code, is amended by adding at the end the following: (p) (1) In this subsection, the terms distilled spirits , wine , and malt beverage have the same meanings as in section 117 of the Federal Alcohol Administration Act ( 27 U.S.C. 211 ). (2) Distilled spirits, wine, or malt beverages shall be considered mailable if mailed— (A) in accordance with the laws and regulations of— (i) the State, territory, or district of the United States where the sender or duly authorized agent initiates the mailing; and (ii) the State, territory, or district of the United States where the addressee or duly authorized agent takes delivery; and (B) to an addressee who is at least 21 years of age— (i) who provides a signature and presents a valid, government-issued photo identification upon delivery; or (ii) the duly authorized agent of whom— (I) is at least 21 years of age; and (II) provides a signature and presents a valid, government-issued photo identification upon delivery. (3) The Postal Service shall prescribe such regulations as may be necessary to carry out this subsection. . (c) Effective date The amendments made by this section shall take effect on the earlier of— (1) the date on which the Postal Service issues regulations under section 3001(p) of title 39, United States Code, as amended by this section; or (2) 120 days after the date of enactment of this Act. 107. Repeal of uniform rate for books, films, and other materials (a) In general Section 3683 is repealed. (b) Clerical amendment The table of sections at the beginning of chapter 36 is amended by repealing the item relating to section 3683. B Postal Service Management 108. USPS balanced budget minimum requirement Section 404(b) is amended— (1) by striking (b) and inserting (b)(1) ; and (2) by adding at the end the following: (2) Notwithstanding subparagraphs (B) or (E) of section 3622(d)(1), within 180 days after the date of enactment of this paragraph, the Governors shall ensure that the rates and fees charged for market dominant products, and the level and quality of service provided by the Postal Service, shall be adjusted in accordance with current law so that the total revenues received by the Postal Service, in fiscal year 2014 and each subsequent fiscal year, from all sources are at least equal to the total costs incurred in the provision of postal services, except that the Governors shall continue to provide all public services for which appropriations are made to the Postal Service under section 2401. (3) After the end of the 2-year period beginning on October 1, 2013, for any fiscal year that the Postal Service is not in compliance with paragraph (2), the Governors shall not receive a salary or compensation of any kind for the following fiscal year, but shall be reimbursed for travel and reasonable expenses incurred in attending meetings of the Board. . 109. Reporting requirement for Board of Governors and Postal Regulatory Commissioners (a) Board of Governors Section 202(a) is amended by adding at the end the following: (3) Not later than 60 days after the end of each fiscal year, the Board of Governors shall submit an itemized report describing all travel and reimbursable business travel expenses paid to each Governor when performing Board duties to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate. The report submitted under this paragraph shall include a detailed justification for any travel or reimbursable business travel expense that deviates from the Board’s travel and reimbursable business travel expense policies and guidelines under paragraph (1). . (b) Administration Section 504(d) is amended— (1) by striking (d) and inserting (d)(1) ; and (2) by adding at the end the following: (2) Not later than 60 days after the end of each fiscal year, the Postal Regulatory Commissioners shall submit an itemized report describing all travel and reimbursable business travel expenses paid to each Commissioner, including the Chairman, when performing regulatory duties to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate. The report submitted under this paragraph shall include a detailed justification for any travel or reimbursable business travel expense that deviates from the Commission’s travel and reimbursable business travel expense policies and guidelines. . 110. Restrictions on postal service executive compensation (a) Limitations on compensation Section 1003 is amended— (1) in subsection (a), by striking the last sentence; and (2) by adding at the end the following: (e) Limitations on compensation (1) Rates of basic pay (A) In general Subject to subparagraph (B), an officer or employee of the Postal Service may not be paid at a rate of basic pay that exceeds the rate of basic pay for level II of the Executive Schedule under section 5313 of title 5. (B) Very senior executives Not more than 6 officers or employees of the Postal Service that are in very senior executive positions, as determined by the Board of Governors, may be paid at a rate of basic pay that does not exceed the rate of basic pay for level I of the Executive Schedule under section 5312 of title 5. (2) Benefits An officer or employee of the Postal Service who is in a critical senior executive or equivalent position, as designated under section 3686(c), may not receive fringe benefits (within the meaning given that term under section 1005(f)) that are greater than the fringe benefits received by supervisory and other managerial personnel who are not subject to collective-bargaining agreements under chapter 12. . (b) Limitation on bonus authority Section 3686 is amended— (1) in subsection (a), by striking The Postal Service and inserting Subject to subsection (f), the Postal Service ; and (2) by adding at the end the following: (f) Limitation on bonus authority (1) Determination Not later than 60 days after the end of fiscal year 2014 and each fiscal year thereafter, the Office of Management and Budget shall determine whether the Postal Service has, with respect to such fiscal year, implemented the measures needed to achieve long-term solvency and balanced budgeting, as required under paragraphs (2) and (3) of section 404(b). In order to make such determination, the Office of Management and Budget shall use the information provided under section 2009. (2) Limitation The Postal Service may not provide a bonus or other reward under this section to an officer or employee of the Postal service in a critical senior executive or equivalent position, as designated under subsection (c), during a covered year. (3) Definition In this subsection, the term covered year means the fiscal year following a fiscal year with respect to which the Office of Management and Budget determines under paragraph (1) that the Postal Service has not implemented the measures needed to achieve long-term solvency and balanced budgeting, as required under paragraphs (2) and (3) of section 404(b). . (c) Effective date; applicability The amendments made by subsections (a) through (c) shall— (1) take effect on the date of enactment of this Act; and (2) apply to any contract entered or modified by the Postal Service on or after the date of enactment of this Act. (d) Sunset Effective 2 years after the date of enactment of this Act— (1) section 1003 is amended— (A) in subsection (a), by adding at the end the following: No officer or employee shall be paid compensation at a rate in excess of the rate for level I of the Executive Schedule under section 5312 of title 5. ; and (B) by striking subsection (e); and (2) section 3686 is amended— (A) in subsection (a), by striking Subject to subsection (f), the Postal Service and inserting The Postal Service ; and (B) by striking subsection (f). 111. Investment of competitive product moneys Section 2003 is amended— (1) by redesignating subsections (d) through (h) as subsections (e) through (i), respectively; and (2) by inserting after subsection (c) the following: (d) Notwithstanding any other provision of this section, if the Postal Service determines that the moneys of the Competitive Products Fund are in excess of current needs, it may invest such amounts as it considers appropriate in accordance with regulations which the Secretary of the Treasury shall prescribe within 180 days after the date of enactment of this subsection. . II POSTAL SERVICE WORKFORCE REALIGNMENT AND RIGHT-SIZING 201. Separate normal-cost percentage recalculation of Federal Employees Retirement System (a) In general Section 8423(a)(1) of title 5, United States Code, is amended— (1) in subparagraph (A)— (A) by striking subparagraph (B)) and inserting subparagraph (B) or (C)) ; and (B) by striking and at the end; (2) in subparagraph (B), by striking the period and inserting ; and ; and (3) by adding at the end the following: (C) the product of— (i) the normal-cost percentage, as determined for employees of the United States Postal Service (and the Postal Regulatory Commission), multiplied by (ii) the aggregate amount of basic pay payable by the United States Postal Service (and the Postal Regulatory Commission), for the period involved, to its employees. . (b) Effective date The amendments made by subsection (a) shall be carried out as soon as practicable, except that contributions shall be set in accordance with such amendments not later than the first applicable pay period beginning in the first fiscal year beginning at least 180 days after the date of the enactment of this Act. 202. Treatment of surplus contributions to Federal Employees Retirement System (a) In general Section 8423(b) of title 5, United States Code, is amended by adding at the end the following: (6) (A) If, for any fiscal year to which this paragraph applies, the amount determined under paragraph (1)(B) is less than zero (hereinafter in this paragraph referred to as excess postal contributions to FERS ), such amount shall be treated in accordance with the following: (i) In the case of the first fiscal year to which this paragraph applies and for which excess postal contributions to FERS are determined, the amount of such excess contributions shall be transferred by the Secretary of the Treasury to such account as the Secretary considers appropriate so that such amount shall be used for the payment of obligations issued by the United States Postal Service under section 2005 of title 39. (ii) In the case of any subsequent fiscal year to which this paragraph applies and for which excess postal contributions to FERS are determined, the amount of such excess contributions shall be transferred by the Secretary of the Treasury to the account to which are credited any Government contributions which are made by the United States Postal Service under section 8334(a)(1)(B) (or which would be made, but for clause (ii) thereof). (B) This paragraph applies to the fiscal year last ending before the date of the enactment of this paragraph and each fiscal year thereafter. (C) In the case of any transfer under subparagraph (A)(ii) for a fiscal year corresponding to a fiscal year for which a determination of Postal surplus or supplemental liability is scheduled to be made under section 8348(h), the transfer under subparagraph (A)(ii) shall be made before such determination under section 8348(h) is made. . (b) Conforming amendment Section 8348(h)(1)(B)(iii) of title 5, United States Code, is amended by striking principles. and inserting principles, including any amounts described in section 8423(b)(6)(A)(ii). . 203. Sense of Congress It is the sense of Congress that the United States Postal Service should use its available authority as it deems necessary to provide early retirement or separation incentives to eligible Postal Service employees. 204. Contributions to Thrift Savings Fund of voluntary separation incentive payments (a) Section 8351(b)(2) of title 5, United States Code, is amended— (1) by striking the matter before subparagraph (C) and inserting the following: (2) (A) An employee or Member may contribute to the Thrift Savings Fund in any pay period any amount of such employee’s or Member’s basic pay for such pay period. (B) An employee may contribute (by direct transfer to the Fund) any part of any voluntary separation incentive payment that the employee receives under section 3523. ; and (2) by adding at the end the following: (D) Notwithstanding section 2105(e), in this paragraph, the term employee includes an employee of the United States Postal Service or the Postal Regulatory Commission. . (b) Section 8432(a) of title 5, United States Code, is amended— (1) by redesignating paragraph (3) as (4); (2) by striking the matter before paragraph (4) (as so redesignated by paragraph (1)) and inserting the following: (a) (1) An employee or Member may contribute to the Thrift Savings Fund in any pay period, pursuant to an election under subsection (b), any amount of such employee’s or Member’s basic pay for such pay period. (2) An employee may contribute (by direct transfer to the Fund) any part of any voluntary separation incentive payment that the employee receives under section 3523. (3) Contributions made under paragraph (1) pursuant to an election under subsection (b) shall, with respect to each pay period for which such election remains in effect, be made in accordance with a program of regular contributions provided in regulations prescribed by the Executive Director. ; and (3) by adding at the end the following: (5) Notwithstanding section 2105(e), in this subsection the term employee includes an employee of the United States Postal Service or of the Postal Regulatory Commission. . (c) Regulations The Executive Director of the Federal Retirement Thrift Investment Board shall promulgate regulations to carry out the amendments made by this section. 205. Service credit contributions of voluntary separation incentive payments (a) Voluntary separation incentive payments The Postal Service may provide voluntary separation incentive payments to employees of the Postal Service who voluntarily separate from service before October 1, 2016 (including payments to employees who retire under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code, before October 1, 2016), which may not exceed the maximum amount provided under section 3523(b)(3)(B) of title 5, United States Code, for any employee. (b) Additional service credit (1) Civil Service Retirement System Section 8332 of title 5, United States Code, is amended by adding at the end the following: (p) (1) (A) For an employee of the United States Postal Service who is covered under this subchapter and voluntarily separates from service before October 1, 2016, the Office, if so directed by the United States Postal Service, shall add not more than 1 year to the total creditable service of the employee for purposes of determining entitlement to and computing the amount of an annuity under this subchapter (except for a disability annuity under section 8337). (B) An employee who receives additional creditable service under this paragraph may not receive a voluntary separation incentive payment from the United States Postal Service. (2) The United States Postal Service shall ensure that the average actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from additional creditable service provided under paragraph (1) or section 8411(m)(1) is not more than $25,000 per employee provided additional creditable service under paragraph (1) or section 8411(m)(1). (3) (A) Subject to subparagraph (B), and notwithstanding any other provision of law, no deduction, deposit, or contribution shall be required for service credited under this subsection. (B) The actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from this subsection shall be included in the amount calculated under section 8348(h)(1)(A). . (2) Federal Employees Retirement System Section 8411 of title 5, United States Code, is amended by adding at the end the following: (m) (1) (A) For an employee of the United States Postal Service who is covered under this chapter and voluntarily separates from service before October 1, 2016, the Office, if so directed by the United States Postal Service, shall add not more than 2 years to the total creditable service of the employee for purposes of determining entitlement to and computing the amount of an annuity under this chapter (except for a disability annuity under subchapter V of that chapter). (B) An employee who receives additional creditable service under this paragraph may not receive a voluntary separation incentive payment from the United States Postal Service. (2) The United States Postal Service shall ensure that the average actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from additional creditable service provided under paragraph (1) or section 8332(p)(1) is not more than $25,000 per employee provided additional creditable service under paragraph (1) or section 8332(p)(1). (3) (A) Subject to subparagraph (B), and notwithstanding any other provision of law, no deduction, deposit, or contribution shall be required for service credited under this subsection. (B) The actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from this subsection shall be included in the amount calculated under section 8423(b)(1)(B). . (c) Goals (1) In general The Postal Service shall offer incentives for voluntary separation under this section and the amendments made by this section as a means of ensuring that the size and cost of the workforce of the Postal Service is appropriate to the work required of the Postal Service, including consideration of— (A) the closure and consolidation of postal facilities; (B) the ability to operate existing postal facilities more efficiently, including by reducing the size or scope of operations of postal facilities in lieu of closing postal facilities; and (C) the number of employees eligible, or projected in the near-term to be eligible, for retirement, including early retirement. (2) Definition In this subsection, the term career employee of the Postal Service means an employee of the Postal Service— (A) whose appointment is not for a limited period; and (B) who is eligible for benefits, including retirement coverage under chapter 83 or 84 of title 5, United States Code. 206. Modification of prepayment schedule relating to Postal Service Retiree Health Benefits Fund (a) Contributions Section 8906(g)(2)(A) of title 5, United States Code, is amended by striking through September 30, 2016, be paid by the United States Postal Service, and thereafter shall and inserting after the date of enactment of the Innovate to Deliver Act of 2013 . (b) Postal Service Retiree Health Benefits Fund Section 8909a(d) of title 5, United States Code, is amended— (1) by striking paragraph (2) and inserting the following: (2) (A) Not later than 180 days after the date of enactment of the Innovate to Deliver Act of 2013, the Office shall compute, and by June 30 of each succeeding year, the Office shall recompute, a schedule including a series of annual installments which provide for the liquidation of the amount described under subparagraph (B) (regardless of whether the amount is a liability or surplus) by September 30, 2053, or within 15 years, whichever is later, including interest at the rate used in the computations under this subsection. (B) The amount described in this subparagraph is the amount, as of the date on which the applicable computation or recomputation under subparagraph (A) is made, that is equal to the difference between— (i) 80 percent of the Postal Service actuarial liability as of September 30 of the most recently ended fiscal year; and (ii) the value of the assets of the Postal Retiree Health Benefits Fund as of September 30 of the most recently ended fiscal year. ; (2) in paragraph (3)— (A) in subparagraph (A)— (i) in clause (iii), by adding and at the end; (ii) in clause (iv), by striking the semicolon at the end and inserting a period; and (iii) by striking clauses (v) through (x); and (B) in subparagraph (B), by striking 2017 and inserting 2016 ; (3) by striking paragraph (4) and inserting the following: (4) Computations under this subsection shall be based on— (A) economic and actuarial methods and assumptions consistent with the methods and assumptions used in determining the Postal surplus or supplemental liability under section 8348(h); and (B) any other methods and assumptions, including a health care cost trend rate, that the Director of the Office determines to be appropriate. ; and (4) by adding at the end the following: (7) In this subsection, the term Postal Service actuarial liability means the difference between— (A) the net present value of future payments required under section 8906(g)(2)(A) for current and future United States Postal Service annuitants; and (B) the net present value as computed under paragraph (1) attributable to the future service of United States Postal Service employees. . (c) Unpaid obligations of the postal service Any obligation of the Postal Service under section 8909a(d)(3)(A) of title 5, United States Code, as in effect on the day before the date of enactment of this Act, that remains unpaid as of such date of enactment shall be included in the recomputation requested in section 8909a(d)(2) of such title (as amended by subsection (b) of this section). (d) Technical and conforming amendments (1) Heading The heading of section 8909a of title 5, United States Code, is amended by striking Benefit and inserting Benefits . (2) Table of sections The table of sections at the beginning of chapter 89 of such title is amended by striking the item relating to section 8909a and inserting the following: 8909a. Postal Service Retiree Health Benefits Fund. . 207. Study on USPS workforce realignment and right-sizing options (a) In general Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report on the workforce reduction or realignment methods used by the United States Postal Service to align its workforce with its needs. (b) Contents of the report The report required under subsection (a) shall include the following: (1) The projected workforce needs of the Postal Service over the next 5 fiscal years, given the current mail volumes and the demand for Postal services. (2) Possible options for allowing Postal Service employees who are eligible for voluntary early retirement to deposit voluntary separation incentive payments to obtain service credit or to otherwise allow such payments to be credited in the computation of retirement annuity benefits. (3) The terms and conditions for the voluntary separation incentive payments offered under section 205. (4) The number of employees in each job category and in each postal service area to whom the Postal Service has offered an incentive for voluntary separation, the number of offers of incentives for voluntary separation that have been accepted, the number of offers of incentives for voluntary separation that remain pending, and the number of employees in each job category and in each postal service area projected to separate from service during each quarter through the end of the first quarter of 2016. (5) The number of employees in each job category who are covered under chapter 83 or 84 of title 5, United States Code, and who have accepted offers of incentives for voluntary separation, including the number of employees covered under each chapter who voluntarily separated under subsection (a) of section 205 or the authority under subsection (b) of section 205. (6) The total savings and work hour reductions by job category and postal service area that have been realized by the Postal Service as of the date of the report and that are projected to be realized during each of the next 3 years as a result of the offers of incentives for voluntary separation. (7) The total expenditures made by the Postal Service to provide incentives for voluntary separation. (8) Any training, retraining, or hiring that may be required by the authority the Postal Service is granted under this Act to develop and offer for sale nonpostal products and services. 208. Applicability of provisions relating to reductions in force Section 1005 is amended by adding at the end the following: (g) (1) Except as otherwise provided by any collective bargaining agreement entered into under chapter 12, the provisions of subchapter I of chapter 35 of title 5 and the regulations implementing such subchapter, shall apply to employees of the Postal Service who hold positions that are within bargaining units under section 1202. (2) Before using the authority provided in paragraph (1), the Postal Service shall demonstrate to the Office of Personnel Management how it will comply with section 3502(a)(4) of title 5. . 209. Enhanced reporting on facility network initiatives Section 404(d) is amended by adding at the end the following: (7) (A) The Postmaster 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 and the Postal Regulatory Commission a report that details plans to close or suspend a Postal Service retail or processing facility during the period to which such report pertains. The first such report shall be submitted not later than 120 days after the date of enactment of this paragraph. Reports shall be submitted semiannually thereafter. (B) Each report submitted by the Postal Service under subparagraph (A) shall address, at a minimum— (i) the specific retail and processing facilities the Postal Service plans to suspend or close; (ii) the anticipated date of suspension or closure of each such facility; (iii) the cost of continued operations at the facilities for which closure is planned; (iv) the purpose of each such suspension or closure, as determined by paragraph (2)(A); (v) plans for the establishment of alternative access points for retail facilities listed in clause (i), including the date on which each such alternative access point shall open for business and the planned location of each such alternative access point; (vi) how each facility closure conforms with previously filed actions for suspension or closure; (vii) the timeline for closure or suspension activities described in paragraphs (1) and (3), and all other formal closure or suspension activities planned in connection with the retail facility closure; (viii) how work performed at mail processing facilities recommended for closure or consolidation will be transferred or absorbed by other facilities within the network; (ix) cost savings expected or achieved from consolidation of both retail and mail processing facilities; (x) the impact of each planned closure on postal employees, including relocation or reassignment plans; and (xi) the status of ongoing suspensions or closures identified in previous reports. . III POSTAL SERVICE IMPROVEMENTS AND REGULATORY RELIEF 301. Permit appeal rights for closing of postal stations and branches Section 404(d) is amended by adding after paragraph (7) (as added by section 208 of this Act) the following: (8) The provisions of paragraphs (1) through (6) shall apply to postal stations and branches in the same manner as the provisions apply to post offices. . 302. Intra-agency cooperative agreements (a) In general Section 411 is amended— (1) in the section heading, by inserting ; authority for intra-service agreement after agencies ; (2) by inserting (a) before Executive agencies within ; and (3) by adding at the end the following: (b) The Office of the Inspector General of the United States Postal Service and other components of the Postal Service may enter into intra-service agreements to furnish to each other property, both real and personal, and personal and nonpersonal services. The furnishing of property and services under this section shall be under such terms and conditions, including reimbursability, as the head of the component concerned and the Inspector General shall deem necessary. . (b) Clerical amendment The table of sections at the beginning of chapter 4 is amended by striking the item relating to section 411 and inserting the following: 411. Cooperation with other Government agencies; authority for intra-service agreement. . 303. Grouping of negotiated service agreements Section 3622(d)(1) (as amended by section 107(b) of this Act) is further amended— (1) in subparagraph (E) (as so redesignated by section 107(b)), by striking and at the end; (2) in subparagraph (F) (as so redesignated by section 107(b)), by striking the period and inserting ; and ; and (3) by adding at the end the following: (G) treat similar or related agreements between the Postal Service and postal users collectively as a single product for purposes of this section to the extent the Commission deems such treatment to be consistent with policies of this title. . 304. Simplification of process for classification of competitive products Section 3642(b) is amended (in the matter before paragraph (1)) by striking in accordance with and inserting the following: as expeditiously as practicable. The Commission shall promptly admit a product into the competitive category if it meets . 305. Development of new market-dominant classes of mail (a) Section 102 is amended— (1) in paragraph (9), by striking and at the end; (2) in paragraph (10), by striking the period and inserting ; and ; and (3) by adding at the end the following: (11) class of mail means a grouping of similar products, subject to section 3622(d)(2)(A), as further defined by the Postal Regulatory Commission. . (b) Section 3622(d)(2)(A) is amended by inserting or under section 3643 after Act . (c) (1) Subchapter III of chapter 36 is amended by adding at the end the following: 3643. New classes of mail (a) In general Upon request of the Postal Service or users of the mails, or upon its own initiative, the Postal Regulatory Commission may change the classes of mail to which the annual limitation under section 3622(d)(1) applies by adding new classes of mail. The Postal Regulatory Commission shall, within 18 months after the date of enactment of this section, promulgate (and may from time to time thereafter revise) regulations to carry out this section. (b) Criteria All determinations by the Postal Regulatory Commission under subsection (a) shall be made in accordance with the following criteria: (1) New market Dominant classes of mail shall consist of products in the sale of which the Postal Service exercises sufficient market power that it can effectively set the price of such product substantially above costs, raise prices significantly, decrease quality, or decrease output, without risk of losing a significant level of business to other firms offering similar products. (2) Products covered by postal monopoly Any new classes of mail containing any products covered by the postal monopoly shall be subject to the requirements of section 3622(d)(1). For purposes of the preceding sentence, the term product covered by the postal monopoly means any product the conveyance or transmission of which is reserved to the United States under section 1696 of title 18, subject to the same exception as set forth in the last sentence of section 409(e)(1). (3) Additional considerations In making any decision under this section, due regard shall be given to— (A) the availability and nature of enterprises in the private sector engaged in the delivery of the product involved; (B) the views of those who use the product involved on the appropriateness of the proposed action; and (C) the likely impact of the proposed action on small business concerns (within the meaning of section 3641(h)). (c) Notification and publication requirements (1) Notification requirement The Postal Service shall, whenever it requests to add a new class of mail, file with the Postal Regulatory Commission and publish in the Federal Register a notice setting out the basis for its determination that the product satisfies the criteria under subsection (b). The provisions of section 504(g) shall be available with respect to any information required to be filed. (2) Publication requirement The Postal Regulatory Commission shall, whenever it changes the list of market-dominant classes of mail, prescribe new lists of classes of mail. The revised lists shall indicate how and when any previous lists are superseded, and shall be published in the Federal Register. (d) Prohibition Except as provided in section 3641, a class of mail that involves the physical delivery of letters, printed matter, or packages may be offered by the Postal Service unless it has been assigned as a new class of mail— (1) under this subchapter; or (2) by or under any other provision of law. . (2) The table of sections at the beginning of chapter 36 is amended by inserting after the item relating to section 3642 the following: 3643. New classes of mail. . 306. Expedited consideration of service changes by PRC Section 3661 is amended— (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following: (c) If the Postal Service seeks expedited processing for time-sensitive advisory opinions, it shall state such request in its proposal filed under subsection (b) and the Commission, to the extent practical and in accordance with subsection (d), shall comply with the request for expedited consideration. .