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* Many amendments would protect postal facilities

* Rural mail delivery an issue for senators

* Bill needs 60 votes to move to U.S. House

April 23 (Reuters) – Lawmakers will fight to save post

offices and other U.S. Postal Service facilities from closure as

the Senate gears up to vote on amendments to a bill to overhaul

the struggling mail agency.

The Postal Service has been losing billions of dollars each

year as Americans increasingly communicate online. Barring

drastic changes, officials have said, the mail agency could face

annual losses of $18 billion by 2015.

The Senate plans to begin voting on Tuesday on amendments to

a bipartisan bill that would allow the agency to tap into a

retirement-fund surplus and end Saturday delivery after two

years.

But rural-state lawmakers argue that the bill does not do

enough to scale back the Postal Service’s plans to close

thousands of money-losing post offices and hundreds of mail

processing facilities starting in mid-May.

The desire to protect beloved postal facilities and jobs in

their states has led some lawmakers to threaten voting against

the bill, indicating a potentially tricky path forward for

postal legislation.

“At this point in time, I would have a difficult time

supporting the bill unless we do some things to help protect

rural areas in this country,” Democratic Senator Jon Tester told

reporters last week.

The Postal Service lost more than $3 billion in its most

recent quarter, much of it due to a massive payment for future

retiree health benefits. The agency says its costs are too high,

and mail volumes too low, to justify the current number of post

offices and processing centers.

The Senate bill spreads the retiree payments out over a

longer time frame and requires the agency to deliver mail on

Saturdays for two more years. A manager’s amendment approved by

its authors creates tougher guidelines for closing post offices

and temporarily blocks the Postal Service from ending overnight

mail delivery.

But it faces a tough road. The Senate currently is

considering nearly 40 amendments, although a Senate aide said

many would not receive votes. The final bill must clear a tough

60-vote hurdle to move to the U.S. House of Representatives. And

even if it gets there, the bill differs considerably from the

leading House plan.

Senators have offered amendments on a wide range of issues,

from workers compensation changes to reducing the number of post

offices in the Capitol.

One amendment requires the Postal Service to move to

five-day mail delivery, while another would force it to keep

Saturday mail for the foreseeable future.

The bill’s authors, Democrat Thomas Carper, Republicans

Scott Brown and Susan Collins, and Independent Joe Lieberman,

have said their bill already addresses many of the issues in the

amendments and reiterated that the Postal Service will continue

losing money without major change.

“If we fail to act … the Postal Service will not survive

as we know it,” Collins said on the Senate floor on Monday.

Protecting postal facilities

Many of the amendments under consideration would offer more

protections for postal facilities.

Tester’s amendment would require the Postal Service to

consider additional factors before closing a post office,

including how an affected community would prefer to receive

postal services.

Senator Olympia Snowe, a Republican, would create

restrictions for processing centers, requiring the agency to

develop a plan to reduce capacity without closing the site.

Senator Claire McCaskill would place a two-year moratorium

on rural post office closings, and fellow Democrat Michael

Bennet would establish a position for an advocate who would

represent rural communities when the Postal Service sought to

close post offices and processing centers.

Not every lawmaker supports this approach. Republican

Senator John McCain backs an amendment that would create an

oversight group to close post offices, similar to a provision in

the leading House of Representatives bill.

McCain also has criticized the Senate bill’s two-year delay

before ending Saturday mail delivery. “That’s one of the

favorite tactics around here, is more studies,” he said in a

speech on the Senate floor last week.