Limit on underwater surcharges

Section 3622(d)(2) of title 39, United States Code, is amended by adding at the end the following new subparagraph: (D) Use of rate authority for non-compensatory classes (i) Limitation Notwithstanding paragraph (1)(A), the Commission may authorize the Postal Service to increase the rates for a non-compensatory class in excess of annual limitation under paragraph (1)(A) if— (I) the change in the attributable cost (as such term is defined in section 3631) per piece of mail for such class does not exceed the annual limitation under paragraph (1)(A), as determined by the Commission using year-to-year comparable costing methodologies; (II) in the immediately preceding fiscal year, the Postal Service has— (aa) pursuant to section 3652 and without the use of any proxy data not approved by the Commission, directly measured and reported the compliance of the Postal Service with the targets established under section 3692 for each product in such class for such fiscal year; and (bb) met each such target for such fiscal year; and (III) no target described in subclause (II) for the immediately preceding fiscal year was reduced from the preceding fiscal year. (ii) Non-compensatory class defined In this subparagraph, the term non-compensatory class means a class of mail for which the attributable costs (as defined in section 3631(b)) of the Postal Service exceed revenues of the Postal Service attributable to such class of mail..