U.S. Postal Service Fleet Modernization

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U.S. Postal Service Fleet Modernization
October October 2327, 2023 , 2023
The United States Postal Service (USPS) is The United States Postal Service (USPS) is ~~the federal agency~~ an independent agency of the executive branch responsible for providing reliable, responsible for providing reliable,
affordable, universal mail delivery across the United States. affordable, universal mail delivery across the United States. ~~One critical element of USPS’s~~
Melissa N. Diaz
One critical element of USPS’s operations is its vehicle fleet, which had more than 235,000 operations is its vehicle fleet, which had more than 235,000 ~~vehicles in FY2022, including~~
~~Analyst in Energy Policy~~
Analyst in Energy Policy vehicles in FY2022, including specialized local delivery trucks, passenger cars, and tractor-specialized local delivery trucks, passenger cars, and tractor- trailers. In FY2022, fuel trailers. In FY2022, fuel

consumption was 221 million gallons of gasoline equivalent, with gasoline or diesel making up consumption was 221 million gallons of gasoline equivalent, with gasoline or diesel making up
99%. USPS fleet greenhouse gas emissions (GHGs) made up 70% 99%. USPS fleet greenhouse gas emissions (GHGs) made up 70% of overall GHGs for federal of overall GHGs for federal

fleet vehicles in FY2022. Modernization of the USPS fleet is of interest to many in Congress, fleet vehicles in FY2022. Modernization of the USPS fleet is of interest to many in Congress,
with several bills introduced and hearings held in recent Congresses regarding modernization of USPS’s fleet. with several bills introduced and hearings held in recent Congresses regarding modernization of USPS’s fleet.
In 2015, USPS began a multiyear process to design and purchase Next Generation Delivery Vehicles (NGDVs)—a new class In 2015, USPS began a multiyear process to design and purchase Next Generation Delivery Vehicles (NGDVs)—a new class
of right-hand drive delivery vehicles—to replace its aging fleet of Long-Life Vehicles (LLVs). NGDVs could be produced of right-hand drive delivery vehicles—to replace its aging fleet of Long-Life Vehicles (LLVs). NGDVs could be produced
with either a battery-electric or internal combustion engine drivetrain. USPS awarded a contract to Oshkosh Defense in with either a battery-electric or internal combustion engine drivetrain. USPS awarded a contract to Oshkosh Defense in
February 2021 to deliver 50,000 to 165,000 NGDVs over 10 years. Initially, USPS did not specify how many would be February 2021 to deliver 50,000 to 165,000 NGDVs over 10 years. Initially, USPS did not specify how many would be
battery-electric. USPS later released plans to acquire 10% battery-electric NGDVs and supported this decision through the battery-electric. USPS later released plans to acquire 10% battery-electric NGDVs and supported this decision through the
Environmental Impact Statement process. According to USPS’s 2021 Final Environmental Impact Statement, the initial Environmental Impact Statement process. According to USPS’s 2021 Final Environmental Impact Statement, the initial
acquisition plan for 10% battery-electric NGDVs with 90% internal combustion engine NGDVs would reduce annual fuel acquisition plan for 10% battery-electric NGDVs with 90% internal combustion engine NGDVs would reduce annual fuel
consumption by 25 million gallons of gasoline, and reduce greenhouse gas emissions by 290,000 metric tons of carbon consumption by 25 million gallons of gasoline, and reduce greenhouse gas emissions by 290,000 metric tons of carbon
dioxide equivalent (CO2e). Following congressional hearings to discuss the initial plan, Congress appropriated $3 billion to dioxide equivalent (CO2e). Following congressional hearings to discuss the initial plan, Congress appropriated $3 billion to
USPS to assist with fleet modernization in the law commonly referred to as the Inflation Reduction Act (IRA; P.L. 117-169, USPS to assist with fleet modernization in the law commonly referred to as the Inflation Reduction Act (IRA; P.L. 117-169,
enacted in August 2022). By the end of 2022, USPS had committed to acquiring at least 60,000 NGDVs, 50% of which enacted in August 2022). By the end of 2022, USPS had committed to acquiring at least 60,000 NGDVs, 50% of which
would be battery-electric. Additionally, USPS announced plans to purchase 68,000 commercial-off-the-shelf vehicles would be battery-electric. Additionally, USPS announced plans to purchase 68,000 commercial-off-the-shelf vehicles
(COTS)—including 30,000 right-hand drive vehicles—to add to or replace delivery and collection vehicles while waiting on (COTS)—including 30,000 right-hand drive vehicles—to add to or replace delivery and collection vehicles while waiting on
NGDV productionNGDV production~~. The intended BEV share for the overall vehicle acquisition is 40%. As a federal agency, USPS~~ , with an intended battery-electric vehicle (BEV) share of 40% for the overall vehicle acquisition. A Final Supplemental Environmental Impact Statement further modified the plan to purchase 106,480 delivery vehicles—a mix of NGDVs and COTS—with an intended BEV share of 62% or more. The USPS fleet is subject is subject
to a number of federal requirements and goals around fleet acquisitions, fuel efficiency, fuel consumption, and greenhouse to a number of federal requirements and goals around fleet acquisitions, fuel efficiency, fuel consumption, and greenhouse
gas emissions. Modernization gas emissions. Modernization ~~of the USPS fleet~~efforts may help the may help the ~~agency~~USPS fleet to reduce fuel consumption, increase fuel efficiency, reduce fuel consumption, increase fuel efficiency,
reduce greenhouse gas emissions, and meet federal requirements and goals. reduce greenhouse gas emissions, and meet federal requirements and goals.

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Introduction
The United States Postal Service (USPS) is The United States Postal Service (USPS) is ~~the~~an independent independent ~~federal agency~~ agency of the executive branch1 responsible for responsible for
providing reliable, affordable, universal mail delivery across the United States. In FY2022, USPS providing reliable, affordable, universal mail delivery across the United States. In FY2022, USPS
handled more than 127 handled more than 127 ~~million~~billion pieces of mail, including letter mail, packages, periodicals, pieces of mail, including letter mail, packages, periodicals,
marketing mail, and international mail.marketing mail, and international mail.2 USPS is primarily self-funded by revenue—roughly $ USPS is primarily self-funded by revenue—roughly $77
78.5 billion in billion in ~~FY2021~~FY2022—from the sale of postal products and services, with Congress providing an —from the sale of postal products and services, with Congress providing an
annual appropriation—roughly $annual appropriation—roughly $550 million in million in ~~FY2021~~FY2023—as reimbursement for free mailing —as reimbursement for free mailing
services provided to the blind and certain overseas voters.services provided to the blind and certain overseas voters.13 Congress has also provided Congress has also provided
supplemental funding for expenses such as pandemic-related operating expenses in 2020 ($10 supplemental funding for expenses such as pandemic-related operating expenses in 2020 ($10
billion) and fleet modernization in 2022 ($3 billion).billion) and fleet modernization in 2022 ($3 billion).24
A critical element of USPS’s operations is its vehicle fleet, which had 236,532 vehicles in A critical element of USPS’s operations is its vehicle fleet, which had 236,532 vehicles in
FY2022. The majority of the fleet consists of delivery and collections vehicles, including 140,664 FY2022. The majority of the fleet consists of delivery and collections vehicles, including 140,664
specialized local delivery trucks called Long-Life Vehicles (LLVs; sespecialized local delivery trucks called Long-Life Vehicles (LLVs; see Figure 1, left panel).eft panel).35
LLVs were designed with right-hand drive for the specific purpose of mail delivery on city and LLVs were designed with right-hand drive for the specific purpose of mail delivery on city and
rural routes. The design facilitates access to mailboxes without the need to exit the delivery truck, rural routes. The design facilitates access to mailboxes without the need to exit the delivery truck,
while also allowing the driver to exit and enter on the curb side. In 2015, USPS announced a while also allowing the driver to exit and enter on the curb side. In 2015, USPS announced a
multiyear acquisition strategy to replace its LLVs—the last of which was acquired in multiyear acquisition strategy to replace its LLVs—the last of which was acquired in ~~19944~~19946—with —with
a newly designed vehicle called the Next Generation Delivery Vehicle (NGDV; seea newly designed vehicle called the Next Generation Delivery Vehicle (NGDV; see Figure 1,
right panel). USPS design specifications listed a number of desired improvements based on right panel). USPS design specifications listed a number of desired improvements based on
observations operating LLVs, largely related to the following:observations operating LLVs, largely related to the following:57
• mitigating maintenance costs; • mitigating maintenance costs;
• addressing safety concerns due to vehicle fires and the general age of LLVs; • addressing safety concerns due to vehicle fires and the general age of LLVs;
• accommodating shifts in mail mix (i.e., reduced letter mail volume and increased • accommodating shifts in mail mix (i.e., reduced letter mail volume and increased
package volume); and package volume); and
• incorporating additional features, such as heating and cooling. • incorporating additional features, such as heating and cooling.
Since the release of Since the release of ~~USPS’s~~its initial specifications, initial specifications, ~~the agency~~USPS has identified the process of has identified the process of
modernizing the LLV fleet as an opportunity to incorporate technology to reduce fleet greenhouse modernizing the LLV fleet as an opportunity to incorporate technology to reduce fleet greenhouse
gas (GHG) emissions,gas (GHG) emissions,68 which may also contribute to reducing fuel consumption, among other which may also contribute to reducing fuel consumption, among other
federal goals federal goals that apply to the USPS fleet~~that USPS is subject to as a federal agency~~. These aspects of fleet modernization are . These aspects of fleet modernization are
of particular interest to Congress. of particular interest to Congress.

1 1 ~~For additional~~USPS, FY2022 Annual Report to Congress, p. 2, https://about.usps.com/what/financials/annual-reports/fy2022.pdf. 2 Ibid., p. 1. 3 For additional information about USPS appropriations, see CRS In Focus IF12516, FY2024 U.S. Postal Service Appropriations, by Michelle D. Christensen. For information about USPS governance and operation, see CRS Report R44603, information about USPS governance and operation, see CRS Report R44603, Reforming the U.S.
Postal Service: Background and Issues for Congress, by Michelle D. Christensen. , by Michelle D. Christensen.
24 Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136), Div. A, §6001, as amended by P.L. Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136), Div. A, §6001, as amended by P.L.
116-260, Div. N, §801. P.L. 117-69 (the law commonly referred to as the Inflation Reduction Act or “IRA”), §70002. 116-260, Div. N, §801. P.L. 117-69 (the law commonly referred to as the Inflation Reduction Act or “IRA”), §70002.
35 Vehicles are reported “in actual units indicated, unaudited”; USPS, Vehicles are reported “in actual units indicated, unaudited”; USPS, FY2022 Annual Report to Congress, p. 29, p. 29,
~~https://about.usps.com/what/financials/annual-reports/fy2022.pdf~~. LLVs were most recently reported at the end of . LLVs were most recently reported at the end of
FY2019. USPS, Office of the Inspector General (OIG), FY2019. USPS, Office of the Inspector General (OIG), Delivery Vehicle Acquisition Strategy, Report Number 19-002-, Report Number 19-002-
R20, August 12, 2020, p. 4, https://www.uspsoig.gov/sites/default/files/reports/2023-01/19-002-R20.pdf. R20, August 12, 2020, p. 4, https://www.uspsoig.gov/sites/default/files/reports/2023-01/19-002-R20.pdf.
46 USPS, USPS, Delivery Vehicle Acquisition Strategy, p. 4. , p. 4.
57 USPS, USPS, United States Postal Service Specification: Vehicle, Carrier Route, Right-Hand Drive [draft], January 20, [draft], January 20,
2015, https://sam.gov/opp/27b8b02f57923cf9f3f51f0563cab1bc/view. 2015, https://sam.gov/opp/27b8b02f57923cf9f3f51f0563cab1bc/view.
68 USPS, “USPS Position on Next Generation Delivery Vehicles,” accessed December 22, 2022, https://about.usps.com/ USPS, “USPS Position on Next Generation Delivery Vehicles,” accessed December 22, 2022, https://about.usps.com/
news/statements/011516.htm. news/statements/011516.htm.
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Figure 1. Long-Life Vehicle (LLV) and Next Generation Delivery Vehicle (NGDV)

Source: U.S. Postal Service, Office of the Inspector General, U.S. Postal Service, Office of the Inspector General, Delivery Vehicle Acquisition Strategy, April 12, 2020, p. , April 12, 2020, p.
15, https://www.uspsoig.gov/sites/default/files/reports/2023-01/19-002-R20.pdf. 15, https://www.uspsoig.gov/sites/default/files/reports/2023-01/19-002-R20.pdf.
In 2021, USPS selected a supplier, made several announcements, and took multiple actions, In 2021, USPS selected a supplier, made several announcements, and took multiple actions,
including the following: including the following:
• awarding a 10-year contract to Oshkosh Defense to design and assemble 50,000 • awarding a 10-year contract to Oshkosh Defense to design and assemble 50,000
to 165,000 NGDVs; to 165,000 NGDVs;79
• announcing that 10% of NGDVs would be battery-electric vehicles (BEVs) • announcing that 10% of NGDVs would be battery-electric vehicles (BEVs)810; ;
• publishing a final Environmental Impact Statement (EIS) defending the selected • publishing a final Environmental Impact Statement (EIS) defending the selected
share of BEVs; share of BEVs;911 and and
• purchasing an additional 34,500 vehicles—commercial-off-the-shelf vehicles • purchasing an additional 34,500 vehicles—commercial-off-the-shelf vehicles
(COTS)—for more immediate replacement of LLVs and other delivery and (COTS)—for more immediate replacement of LLVs and other delivery and
collections vehicles, and increasing the overall share of BEVs to approximately collections vehicles, and increasing the overall share of BEVs to approximately
50% across NGDVs and COTS.50% across NGDVs and COTS.1012
In 2022, USPS placed its initial order for 50,000 NGDVs, which included approximately 20% In 2022, USPS placed its initial order for 50,000 NGDVs, which included approximately 20%
BEVs.BEVs.11
~~In the 117th Congress, lawmakers introduced several bills concerning the modernization of the~~
~~USPS fleet.12 In general, the bills aimed to increase the zero-emission vehicle (ZEV; e.g., BEV or~~
~~fuel cell electric vehicle) share of vehicle acquisitions, phase out non-ZEV medium- and heavy-~~
~~duty vehicles, and mandate climate control units. Congress also held hearings to discuss fleet~~

713 In September 2023, USPS published a Final Supplemental Environmental Impact Analysis, which described a modified plan to purchase 106,480 delivery vehicles—a mix of NGDVs and COTS with a minimum of 62% BEVs.14 9 USPS, “U.S. Postal Service Awards Contract to Launch Multi-Billion-Dollar Modernization of Postal Delivery USPS, “U.S. Postal Service Awards Contract to Launch Multi-Billion-Dollar Modernization of Postal Delivery
Vehicle Fleet,” February 23, 2021, https://about.usps.com/newsroom/national-releases/2021/0223-multi-billion-dollar-Vehicle Fleet,” February 23, 2021, https://about.usps.com/newsroom/national-releases/2021/0223-multi-billion-dollar-
modernization-of-postal-delivery-vehicle-fleet.htm. modernization-of-postal-delivery-vehicle-fleet.htm.
810 U.S. Congress, House Committee on Oversight and Reform, U.S. Congress, House Committee on Oversight and Reform, Legislative Proposals to Put the Postal Service on
Sustainable Financial Footing, 117th Cong., 1st sess., February 24, 2021. , 117th Cong., 1st sess., February 24, 2021.
911 USPS, USPS, Final Environmental Impact Statement for Purchase of Next Generation Delivery Vehicles, December 2021, , December 2021,
https://uspsngdveis.com/documents/USPS+NGDV+FEIS_Dec+2021.pdf. https://uspsngdveis.com/documents/USPS+NGDV+FEIS_Dec+2021.pdf.
1012 USPS, “USPS Intends to Deploy Over 66,000 Electric Vehicles by 2028, Making One of the Largest Electric Vehicle USPS, “USPS Intends to Deploy Over 66,000 Electric Vehicles by 2028, Making One of the Largest Electric Vehicle
Fleets in the Nation,” December 20, 2022, https://about.usps.com/newsroom/national-releases/2022/1220-usps-intends-Fleets in the Nation,” December 20, 2022, https://about.usps.com/newsroom/national-releases/2022/1220-usps-intends-
to-deploy-over-66000-electric-vehicles-by-2028.htm. to-deploy-over-66000-electric-vehicles-by-2028.htm.
1113 Oshkosh Defense, “Oshkosh Defense Receives First Order for Next Generation Delivery Vehicle Fleet,” March 24, Oshkosh Defense, “Oshkosh Defense Receives First Order for Next Generation Delivery Vehicle Fleet,” March 24,
2022, https://oshkoshdefense.com/oshkosh-defense-receives-first-order-for-next-generation-delivery-vehicle-fleet/. 2022, https://oshkoshdefense.com/oshkosh-defense-receives-first-order-for-next-generation-delivery-vehicle-fleet/.
~~12 The Postal Vehicle Modernization Act (H.R. 1636), Postal Service Electric Fleet Authorization Act of 2021 (H.R.~~
~~3521), Green Postal Service Fleet Act of 2022 (H.R. 7018), Ensuring an Accurate Postal Fleet Electrification Act (H.R.~~
~~7682), and Peggy Frank Memorial Act (H.R. 8376).~~
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14 USPS, Final Supplemental Environmental Impact Statement for Next Generation Delivery Vehicle (NGDV) Acquisitions, September 2023, https://uspsngdveis.com/documents/FinalNGDVSEIS.pdf. Congressional Research Service 2 link to page 7 U.S. Postal Service Fleet Modernization In the 117th Congress, lawmakers introduced several bills concerning the modernization of the USPS fleet.15 In general, the bills aimed to increase the zero-emission vehicle (ZEV; e.g., BEV or fuel cell electric vehicle) share of vehicle acquisitions, phase out non-ZEV medium- and heavy-duty vehicles, and mandate climate control units. Congress also held hearings to discuss fleet modernization—including questioning USPS about considering larger shares of ZEVs—and modernization—including questioning USPS about considering larger shares of ZEVs—and
statements made in USPS’s EIS regarding the proposed shares of ZEVs in the new fleet.statements made in USPS’s EIS regarding the proposed shares of ZEVs in the new fleet.1316
Subsequently, Congress appropriated $3 billion to USPS in the law commonly referred to as the Subsequently, Congress appropriated $3 billion to USPS in the law commonly referred to as the
Inflation Reduction Act (IRA, P.L. 117-169), enacted in August 2022. Of these funds, Congress Inflation Reduction Act (IRA, P.L. 117-169), enacted in August 2022. Of these funds, Congress
directed $1.29 billion to USPS for the purchase of ZEVs and $1.71 billion for the purchase, directed $1.29 billion to USPS for the purchase of ZEVs and $1.71 billion for the purchase,
design, and installation of related infrastructure at USPS facilities.design, and installation of related infrastructure at USPS facilities.1417
This report explores USPS efforts to modernize its delivery and collections fleet, including This report explores USPS efforts to modernize its delivery and collections fleet, including
challenges and policy considerations, following an overview of the fleet’s vehicles and fuel challenges and policy considerations, following an overview of the fleet’s vehicles and fuel
consumption, and a discussion of federal requirements and standards applicable to USPS. consumption, and a discussion of federal requirements and standards applicable to USPS.
Overview of the USPS Fleet
USPS employs the largest federal vehicle fleet (39% of the overall domestic federal fleet) and one USPS employs the largest federal vehicle fleet (39% of the overall domestic federal fleet) and one
of the largest fleets in the world,of the largest fleets in the world,1518 with 236,532 vehicles carrying out its mission and duties in with 236,532 vehicles carrying out its mission and duties in
FY2022.FY2022.1619 As seen in As seen in Figure 2, delivery and collection vehicles made up the largest share (91%, elivery and collection vehicles made up the largest share (91%,
216,456 vehicles). The most recent data available of those delivery and collection vehicles, the 216,456 vehicles). The most recent data available of those delivery and collection vehicles, the
largest share comprised LLVs (69% at the end of FY2019).largest share comprised LLVs (69% at the end of FY2019).1720 LLVs were designed with right-hand LLVs were designed with right-hand
drive, specifically for mail delivery and collection on city and rural routes. Built with an expected drive, specifically for mail delivery and collection on city and rural routes. Built with an expected
service life of 24 years, ages for existing LLVs ranged from 25 to 32 years old in FY2019. USPS service life of 24 years, ages for existing LLVs ranged from 25 to 32 years old in FY2019. USPS
attributes increasing maintenance costs—$5,007 per vehicle in FY2019—to these aging attributes increasing maintenance costs—$5,007 per vehicle in FY2019—to these aging
vehicles.vehicles.1821 The rest of the overall fleet consisted of various other vehicles used for other purposes, The rest of the overall fleet consisted of various other vehicles used for other purposes,
such as mail transportation (e.g., for transporting mail between processing facilities) and various such as mail transportation (e.g., for transporting mail between processing facilities) and various
administrative services. administrative services.

1315 The Postal Vehicle Modernization Act (H.R. 1636), Postal Service Electric Fleet Authorization Act of 2021 (H.R. 3521), Green Postal Service Fleet Act of 2022 (H.R. 7018), Ensuring an Accurate Postal Fleet Electrification Act (H.R. 7682), and Peggy Frank Memorial Act (H.R. 8376). 16 U.S. Congress, U.S. Congress, Legislative Proposals to Put the Postal Service on Sustainable Financial Footing; and U.S. Congress, ; and U.S. Congress,
House Committee on Oversight and Reform, House Committee on Oversight and Reform, It’s Electric: Developing the Postal Service Fleet of the Future, 117th , 117th
Cong., 2nd sess., April 5, 2022. Cong., 2nd sess., April 5, 2022.
1417 For more information, see CRS Insight IN12003, For more information, see CRS Insight IN12003, Inflation Reduction Act of 2022: Incentives for Clean
Transportation, by Melissa N. Diaz. , by Melissa N. Diaz.
1518 General Services Administration (GSA), General Services Administration (GSA), FY2022 Federal Fleet Open Data Set, Table 2-3, “Domestic and Foreign , Table 2-3, “Domestic and Foreign
Inventory.” Total domestic inventory was 617,575 and USPS inventory was 241,054. Inventory.” Total domestic inventory was 617,575 and USPS inventory was 241,054.
1619 Vehicles are reported “in actual units indicated, unaudited.” Vehicles are reported “in actual units indicated, unaudited.” FY2022 Annual Report to Congress, p. 29. , p. 29.
1720 As of September 30, 2019. USPS, As of September 30, 2019. USPS, Delivery Vehicle Acquisition Strategy, p. 4. , p. 4.
1821 Ibid., p. 5. Ibid., p. 5.
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Figure 2. United States Postal Service (USPS) Vehicle Fleet
236,532 total vehicles in FY2022 236,532 total vehicles in FY2022

Source: United States Postal Service (USPS), United States Postal Service (USPS), FY2022 Annual Report to Congress, p. 29, https://about.usps.com/, p. 29, https://about.usps.com/
what/financials/annual-reports/fy2022.pdf. what/financials/annual-reports/fy2022.pdf.
Notes: Data according to USPS, in actual units indicated, unaudited. Some variations exist between USPS data Data according to USPS, in actual units indicated, unaudited. Some variations exist between USPS data
and General Services Administration fleet data, which reports 241,054 vehicles in FY2022. and General Services Administration fleet data, which reports 241,054 vehicles in FY2022.
As seen in As seen in Figure 3, when broken down by fuel type, gasoline- and diesel-powered vehicles when broken down by fuel type, gasoline- and diesel-powered vehicles
made up 87% of the overall fleet in FY2022.made up 87% of the overall fleet in FY2022.1922 The majority of the remainder of the fleet The majority of the remainder of the fleet
consisted primarily of E85 vehicles (dual-fuel vehicles that are capable of running on a gasoline consisted primarily of E85 vehicles (dual-fuel vehicles that are capable of running on a gasoline
or a blend of gasoline with up to 85% ethanol by volume). Non-plug-in hybrid-electric vehicles, or a blend of gasoline with up to 85% ethanol by volume). Non-plug-in hybrid-electric vehicles,
BEVs, low greenhouse gas emitting (LGHG) vehicles, compressed natural gas (CNG) vehicles, BEVs, low greenhouse gas emitting (LGHG) vehicles, compressed natural gas (CNG) vehicles,
and liquefied petroleum gas (LPG) vehicles made up less than 1% of the overall fleet.and liquefied petroleum gas (LPG) vehicles made up less than 1% of the overall fleet.2023

1922 GSA reported a total of 241,054 vehicles in the USPS fleet for FY2022. GSA, GSA reported a total of 241,054 vehicles in the USPS fleet for FY2022. GSA, FY2022 Federal Fleet, Table 5-3, , Table 5-3,
“Vehicle Inventory by Fuel Type.” LGHG vehicles may be gasoline- or diesel-powered; the USPS fleet included “Vehicle Inventory by Fuel Type.” LGHG vehicles may be gasoline- or diesel-powered; the USPS fleet included
gasoline but not diesel LGHG vehicles. Additionally, the USPS fleet did not include the following vehicle categories: gasoline but not diesel LGHG vehicles. Additionally, the USPS fleet did not include the following vehicle categories:
diesel hybrid vehicles, gasoline or diesel plug-in hybrid-electric vehicles, hydrogen fuel cell vehicles, low-speed diesel hybrid vehicles, gasoline or diesel plug-in hybrid-electric vehicles, hydrogen fuel cell vehicles, low-speed
electric vehicles, liquefied natural gas vehicles. electric vehicles, liquefied natural gas vehicles.
2023 LGHG vehicles are defined by the Environmental Protection Agency (EPA) based on specific GHG levels measured LGHG vehicles are defined by the Environmental Protection Agency (EPA) based on specific GHG levels measured
in grams of carbon dioxide per mile; EPA, “Federal Fleets Using Low-Greenhouse Gas Emitting Vehicles,” updated in grams of carbon dioxide per mile; EPA, “Federal Fleets Using Low-Greenhouse Gas Emitting Vehicles,” updated
November 10, 2022, https://www.epa.gov/regulations-emissions-vehicles-and-engines/federal-fleets-using-low-November 10, 2022, https://www.epa.gov/regulations-emissions-vehicles-and-engines/federal-fleets-using-low-
greenhouse-gas-emitting#define. greenhouse-gas-emitting#define.
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Figure 3. United States Postal Service (USPS) Vehicles by Fuel Type
241,054 total vehicles in FY2022 241,054 total vehicles in FY2022

Source: General Services Administration (GSA), General Services Administration (GSA), FY2022 Federal Fleet Open Data Set, Table 5-3, “Vehicle , Table 5-3, “Vehicle
Inventory by Fuel Type.” Inventory by Fuel Type.”
Notes: LGHG = low greenhouse gas emitting vehicles. LGHGs in the USPS fleet are gasoline-powered, though LGHG = low greenhouse gas emitting vehicles. LGHGs in the USPS fleet are gasoline-powered, though
LGHGs may also be diesel-powered. GSA reports on several other vehicle types that are not in the USPS fleet: LGHGs may also be diesel-powered. GSA reports on several other vehicle types that are not in the USPS fleet:
diesel hybrid-electric vehicles, gasoline and diesel plug-in hybrid-electric vehicles, hydrogen fuel cell vehicles, low-diesel hybrid-electric vehicles, gasoline and diesel plug-in hybrid-electric vehicles, hydrogen fuel cell vehicles, low-
speed electric vehicles, and liquefied natural gas vehicles. speed electric vehicles, and liquefied natural gas vehicles.
Fuel Consumption and Greenhouse Gas Emissions
The USPS fleet accounted for the largest share (58%) of overall federal fleet fuel consumption in The USPS fleet accounted for the largest share (58%) of overall federal fleet fuel consumption in
FY2022, followed by the Departments of Defense (15%) and Justice (6%).FY2022, followed by the Departments of Defense (15%) and Justice (6%).2124 For USPS, more For USPS, more
than 99% of the 221 million gallons of gasoline equivalent (GGE) consumed was gasoline (189 than 99% of the 221 million gallons of gasoline equivalent (GGE) consumed was gasoline (189
million GGE) or diesel (31 million GGE).million GGE) or diesel (31 million GGE).2225 Alternative fuels made up less than 1% of fuel Alternative fuels made up less than 1% of fuel
consumption (summarized inconsumption (summarized in Table 1). These fuels included E85, biodiesel (B20, a blend of . These fuels included E85, biodiesel (B20, a blend of
diesel with 20% biodiesel by volume), LPG, CNG, and electricity. diesel with 20% biodiesel by volume), LPG, CNG, and electricity.
~~Table 1. United States Postal Service (USPS) Fleet Alternative Fuel Consumption~~
~~895,665 gallons of gasoline equivalent (GGE), FY2022~~
~~Alternative Fuels Consumed~~
~~Share of USPS Flee Alternative~~

~~(GGE)~~
~~Fuel Consumption~~
~~Biodiesel (B20)~~
~~632,441~~
~~71%~~

21 24 GSA, GSA, FY2022 Federal Fleet, Table 5-1, “Worldwide Fuel Consumption.” Department of Defense data includes , Table 5-1, “Worldwide Fuel Consumption.” Department of Defense data includes
nontactical vehicles as reported to GSA and does not include tactical vehicles. nontactical vehicles as reported to GSA and does not include tactical vehicles.
2225 Ibid. Fuel consumption was reported in GGE. Ibid. Fuel consumption was reported in GGE.
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Table 1. United States Postal Service (USPS) Fleet Alternative Fuel Consumption 895,665 gallons of gasoline equivalent (GGE), FY2022 Alternative Fuels Consumed
Share of USPS ~~Flee Alternative~~Fleet

(GGE)
Alternative Fuel Consumption
Biodiesel (B20) 632,441 71% Ethanol (E85) Ethanol (E85)
254,098 254,098
28% 28%
Compressed Natural Gas (CNG) Compressed Natural Gas (CNG)
8,644 8,644
1% 1%
Liquefied Petroleum Gas (LPLG) Liquefied Petroleum Gas (LPLG)
409 409
< 1% < 1%
Electricity Electricity
73 73
< 1% < 1%
Source: General Services Administration, General Services Administration, FY2022 Federal Fleet Open Data Set, Table 5-1, “Worldwide Fuel , Table 5-1, “Worldwide Fuel
Consumption.” Consumption.”
Emissions for the USPS fleet made up the largest share (70%) of overall GHGs for federal fleets Emissions for the USPS fleet made up the largest share (70%) of overall GHGs for federal fleets
in FY2022, followed by the Departments of Defense (13%) and Agriculture (5%).in FY2022, followed by the Departments of Defense (13%) and Agriculture (5%).2326 GHGs for the GHGs for the
USPS fleet have been on the rise since 2008, increasing by 46.4% from 1.34 million metric tons USPS fleet have been on the rise since 2008, increasing by 46.4% from 1.34 million metric tons
of carbon dioxide equivalent (CO2e) to 1.96 million metric tons of CO2e in 2022 (seeof carbon dioxide equivalent (CO2e) to 1.96 million metric tons of CO2e in 2022 (see Figure 4). .
Figure 4. USPS Fleet Greenhouse Gas Emissions
Emissions in MMT CO2e and share of federal fleet emissions Emissions in MMT CO2e and share of federal fleet emissions

Source: Department of Energy (DOE), Office of Energy Efficiency Department of Energy (DOE), Office of Energy Efficiency &and Renewable Energy (EERE), “E-4 Scope 1 & 2 Renewable Energy (EERE), “E-4 Scope 1 & 2
GHG [Greenhouse Gas] Emissions from Standard Operations (Targeted Emissions) by Sector and Category, GHG [Greenhouse Gas] Emissions from Standard Operations (Targeted Emissions) by Sector and Category, FY
~~2008 through FY 2022 (Metric Tons of Carbon Dioxide Equivalent),” https://ctsedwweb.ee.doe.gov/Annual/~~
~~Report/Scope1And2GHGEmissionsByOperationsTypeTargetNonTargetSectorAndCategory.aspx.~~
Notes: GHGs reported by EERE in mil ion metric tons of carbon dioxide equivalent (MMT CO2e). United States
~~Postal Service (USPS) fleet emissions are displayed as a share of overall federal fleet emissions.~~

23 26 DOE, EERE, “E-3 Scope 1 & 2 GHG Emissions from Standard Operations by Category, FY 2008 and FY 2022 DOE, EERE, “E-3 Scope 1 & 2 GHG Emissions from Standard Operations by Category, FY 2008 and FY 2022
(Metric Tons of Carbon Dioxide Equivalent),” https://ctsedwweb.ee.doe.gov/Annual/Report/(Metric Tons of Carbon Dioxide Equivalent),” https://ctsedwweb.ee.doe.gov/Annual/Report/
Scope1And2GHGEmissionsSubjectToReductionTargetsByCategoryComparedToFY2008.aspx. GHGs from fleets Scope1And2GHGEmissionsSubjectToReductionTargetsByCategoryComparedToFY2008.aspx. GHGs from fleets
reported through FAST; includes nontactical vehicles for Department of Defense. Including GHGs from all vehicles reported through FAST; includes nontactical vehicles for Department of Defense. Including GHGs from all vehicles
and equipment would result in the following shares: 49% for USPS, 30% for Department of Defense, and 4% for and equipment would result in the following shares: 49% for USPS, 30% for Department of Defense, and 4% for
Department of Agriculture. Department of Agriculture.
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link to page link to page 1011 U.S. Postal Service Fleet Modernization FY 2008 through FY 2022 (Metric Tons of Carbon Dioxide Equivalent),” https://ctsedwweb.ee.doe.gov/Annual/Report/Scope1And2GHGEmissionsByOperationsTypeTargetNonTargetSectorAndCategory.aspx. Notes: GHGs reported by EERE in mil ion metric tons of carbon dioxide equivalent (MMT CO2e). United States Postal Service (USPS) fleet emissions are displayed as a share of overall federal fleet emissions. ~~U.S. Postal Service Fleet Modernization~~

Fuel efficiency for new vehicles presents an opportunity to potentially reduce fuel consumption Fuel efficiency for new vehicles presents an opportunity to potentially reduce fuel consumption
and GHGs for the fleet. LLV fuel efficiency is rated at 17 miles per gallon (mpg), though it has and GHGs for the fleet. LLV fuel efficiency is rated at 17 miles per gallon (mpg), though it has
been observed to be 8.6 mpg.been observed to be 8.6 mpg.2427 While official mileage ratings are useful for comparing vehicles, While official mileage ratings are useful for comparing vehicles,
actual mileage will depend on real-world driving conditions.actual mileage will depend on real-world driving conditions.2528 As of 2021, USPS reported a As of 2021, USPS reported a
baseline of 14.7 mpg for NGDVs powered by gasoline, which decreased to 8.6 mpg when baseline of 14.7 mpg for NGDVs powered by gasoline, which decreased to 8.6 mpg when
operating onboard air conditioning—LLVs do not have air conditioning, though it is expected to operating onboard air conditioning—LLVs do not have air conditioning, though it is expected to
be a standard feature for NGDVs.be a standard feature for NGDVs.2629 Incorporating more battery-electric NGDVs may help Incorporating more battery-electric NGDVs may help ~~USPS~~
the USPS fleet reduce fuel consumption and GHGs emissions, and potentially help reduce fuel consumption and GHGs emissions, and potentially help ~~the agency meet federal~~it meet
requirements and goals for requirements and goals for federal fleets. fleets.
Fleet Management Requirements and Goals
~~As a federal agency, USPS is~~The USPS fleet and related activities are subject to a number of federal requirements and goals that govern subject to a number of federal requirements and goals that govern
~~energy management and~~ the management and operation of government vehicle fleets, including the management and operation of government vehicle fleets, including
fuel efficiency, GHGs, fuel consumption, and fleet acquisitionsfuel efficiency, GHGs, fuel consumption, and fleet acquisitions ~~(see~~. Table 2).27 provides information on select federal fleet management requirements that are applicable to the USPS fleet under the Energy Policy Act of 1992 (EPAct92; P.L. 102-486; 42 U.S.C. §13212(b)(3)) and the Energy Independence and Security Act of 2007 (EISA; P.L. 110-140; 42 U.S.C. §13212(f)).30 The Office of The Office of
Budget and Management (OMB) publishes scorecards and performance on energy efficiency and Budget and Management (OMB) publishes scorecards and performance on energy efficiency and
sustainability goals annually.sustainability goals annually.2831 In FY2021, USPS missed the benchmarks for two fueling metrics: In FY2021, USPS missed the benchmarks for two fueling metrics:
• alternative fuel consumption was 51% less than the FY2005 baseline ( • alternative fuel consumption was 51% less than the FY2005 baseline (~~agencies~~
federal fleets are required to increase alternative fuels by 10% relative to the baseline);are required to increase alternative fuels by 10% relative to the baseline);29 32 and and
• petroleum fuel consumption was 38% more than the FY2005 baseline ( • petroleum fuel consumption was 38% more than the FY2005 baseline (~~agencies~~
federal fleets are required to reduce petroleum fuel by 20%), though it was 2.2% less than are required to reduce petroleum fuel by 20%), though it was 2.2% less than
~~FY2020.~~
~~Table 2. Selected Federal Fleet Management Requirements~~
~~Relevant to the United States Postal Service (USPS) fleet~~
~~Requirement~~
~~Statutory or Regulatory Authority~~
~~Vehicle Acquisition Requirements~~

~~AFVs must make up 75% of all new federal light duty vehicle~~
~~Section 303 of the Energy Policy Act of 1992~~
~~acquisitions (LLVs and NGDVs are classified as heavy duty).~~
~~(EPAct92; 42 U.S.C. §13212(b))~~
~~Agencies should not acquire new light- or medium-duty~~
~~Section 141 of the Energy Independence and~~
~~vehicles that are not LGHG vehicles.~~
~~Security Act of 2007 (EISA; 42 U.S.C.~~
~~§13212(f)(2))~~

24FY2020. 27 FuelEconomy.gov, “1988 Grumman Allied Industries LLV,” accessed March 15, 2023, FuelEconomy.gov, “1988 Grumman Allied Industries LLV,” accessed March 15, 2023,
https://www.fueleconomy.gov/feg/bymodel/1988_Grumman_Allied_Industries_LLV.shtml; and USPS, https://www.fueleconomy.gov/feg/bymodel/1988_Grumman_Allied_Industries_LLV.shtml; and USPS, Final
Environmental Impact Statement, December 2021, p. G-2, Table G-1. , December 2021, p. G-2, Table G-1.
2528 FuelEconomy.gov, “Your Mileage Will Vary,” accessed May 31, 2023, https://www.fueleconomy.gov/feg/ FuelEconomy.gov, “Your Mileage Will Vary,” accessed May 31, 2023, https://www.fueleconomy.gov/feg/
why_differ.shtml. why_differ.shtml.
2629 USPS, USPS, Final Environmental Impact Statement, December 2021, p. 3-2. , December 2021, p. 3-2.
~~27 Agencies are described in EPAct92 (see 42 U.S.C. §13212) and are extended to EPAct05 fleet requirements.~~
2830 EPAct92 definitions of federal agencies and fleets are extended to fleet requirements in the Energy Policy Act of 2005 (42 U.S.C. §6374), Section 142 of EISA (42 U.S.C. §6374e), and Section 246 of EISA (42 U.S.C. §17053). DOE, Federal Energy Management Program (FEMP), “Federal Fleet Requirements Resource Center: Applicability,” accessed October 30, 2023, https://www.energy.gov/femp/federal-fleet-requirements-resource-center-applicability. 31 OMB, “United States Postal Service: FY 2021 OMB Scorecard for Efficient Federal Operations/Management,” OMB, “United States Postal Service: FY 2021 OMB Scorecard for Efficient Federal Operations/Management,”
https://www.sustainability.gov/pdfs/usps-scorecard-fy2021.pdf. https://www.sustainability.gov/pdfs/usps-scorecard-fy2021.pdf.
2932 42 U.S.C. §6374. Alternative fuels include ethanol and other alcohols, blends of alcohols with gasoline or other fuels, 42 U.S.C. §6374. Alternative fuels include ethanol and other alcohols, blends of alcohols with gasoline or other fuels,
natural gas, liquefied petroleum gas, hydrogen, coal-derived liquid fuels, fuels derived from biological materials, and natural gas, liquefied petroleum gas, hydrogen, coal-derived liquid fuels, fuels derived from biological materials, and
electricity. In FY2005, USPS consumed 0.5 million GGE of alternative fuel and 144 million GGE of petroleum fuel. In electricity. In FY2005, USPS consumed 0.5 million GGE of alternative fuel and 144 million GGE of petroleum fuel. In
FY2021, USPS consumed 0.2 million GGE of alternative fuel and 199 million GGE of petroleum fuel. Office of FY2021, USPS consumed 0.2 million GGE of alternative fuel and 199 million GGE of petroleum fuel. Office of
Sustainability, Sustainability, Fleet Petroleum and Alternative Fuel, figure, https://www.sustainability.gov/usps.html. , figure, https://www.sustainability.gov/usps.html.
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~~Requirement~~
~~Statutory or Regulatory Authority~~
~~Beginning in FY2027, ZEVs must make up all new federal~~
~~Executive Order (E.O.) 14057 Section 204~~
~~light-duty vehicle acquisitions~~Table 2. Selected Federal Fleet Management Requirements Relevant to the United States Postal Service (USPS) fleet Requirement Statutory or Regulatory Authority Vehicle Acquisition Requirements AFVs must make up 75% of all new Section 303 of the Energy Policy Act of 1992 (EPAct92; 42 U.S.C. federal light duty vehicle acquisitions §13212(b)(1)-(2)) (LLVs and NGDVs are classified as heavy duty). Federal fleets should not acquire new Section 141 of the Energy Independence and Security Act of 2007 light- or medium-duty vehicles that are (EISA; 42 U.S.C. §13212(f)(2)) not LGHG vehicles. .
Energy and Fueling Requirements

Alternative fuel consumption by federal Alternative fuel consumption by federal ~~fleets must increase~~
Section 142 of EISA (42 U.S.C. §6374e(a) Section 142 of EISA (42 U.S.C. §6374e(a)~~(2))~~
) fleets must increase by 10% (FY2005 baseline by end of FY2015). by 10% (FY2005 baseline by end of FY2015).
Petroleum fuel consumption must Petroleum fuel consumption must ~~decrease by 20% (FY2005~~
Section 142 of EISA (42 U.S.C. §6374e(a) Section 142 of EISA (42 U.S.C. §6374e(a)~~(2))~~
) decrease by 20% (FY2005 baseline by end of FY2015). baseline by end of FY2015).
Dual-fueled vehicles (e.g., flex-fuel Dual-fueled vehicles (e.g., flex-fuel ~~vehicles) must be operated~~
Section 701 of the Energy Policy Act of 2005 Section 701 of the Energy Policy Act of 2005
~~on alternative fuels.~~
(EPAct05; 42 U.S.C. (EPAct05; 42 U.S.C. vehicles) must be operated on alternative §6374(a)(3)(E)) §6374(a)(3)(E))
fuels. Agency fleet refueling stations must have Agency fleet refueling stations must have ~~at least one~~
Section 246 of EISA (42 U.S.C. §17053(a)(c)) Section 246 of EISA (42 U.S.C. §17053(a)(c))
at least one renewable fuel pump. renewable fuel pump.
Refueling sites or stations providing Refueling sites or stations providing ~~alternative fuels to~~
Section 304 of EPAct92 (42 U.S.C. §13213(a)); Section 304 of EPAct92 (42 U.S.C. §13213(a));
~~agencies must be publicly accessible.~~
~~Section 701 of EPAct05 (42 U.S.C. §6374(c))~~
~~Electricity from renewable energy sources must make up~~
~~Section 203 of~~ Section 701 of alternative fuels to federal fleets must be EPAct05 (42 U.S.C. §EPAct05 (42 U.S.C. §~~15852(a))~~
~~7.5% of total annual electricity consumption~~6374(c)) publicly accessible. .
Planning and Reporting ~~Requirements~~

Requirements Agencies must develop plans to achieve Agencies must develop plans to achieve ~~petroleum reduction~~
Section 142 of EISA (42 U.S.C. §6374e(b)) Section 142 of EISA (42 U.S.C. §6374e(b))
petroleum reduction and alternative fuel consumption targets (e.g., Strategic and alternative fuel consumption targets (e.g., Strategic
Sustainability Performance Plan, Federal Fleet Fuel Sustainability Performance Plan, Federal Fleet Fuel
~~Consumption Plans).~~
~~Agencies must report annually on alternative fuel purchasing~~
~~Section 705 of EPAct05 (42 U.S.C. §13218(b))~~
~~requirements (i.e., Federal Fleet Compliance Report).~~
~~Agencies must annually submit a strategic plan with annual~~
~~E.O. 14057 Section 204~~
~~targets for transforming agency fleets to ZEVs~~Consumption Plans). .
Source: Department of Energy (DOE), Office Energy Efficiency and Renewable Energy (EERE), “Fleet Department of Energy (DOE), Office Energy Efficiency and Renewable Energy (EERE), “Fleet
Management,” accessed September 29, 2023, https://www7.eere.energy.gov/femp/requirements/Management,” accessed September 29, 2023, https://www7.eere.energy.gov/femp/requirements/
requirements_filtering/Fleet%20Management. DOE, EERE, “Renewable and Carbon Free Energy and Electricity,” requirements_filtering/Fleet%20Management. DOE, EERE, “Renewable and Carbon Free Energy and Electricity,”
accessed September 29, 2023, https://www7.eere.energy.gov/femp/requirements/requirements_filtering/accessed September 29, 2023, https://www7.eere.energy.gov/femp/requirements/requirements_filtering/
Renewable%20and%20Carbon%20Free%20Energy%20and%20Electricity. Renewable%20and%20Carbon%20Free%20Energy%20and%20Electricity.
DOE, Federal Energy Management Program, “Federal Fleet Requirements Resource Center: Applicability,” accessed October 30, 2023, https://www.energy.gov/femp/federal-fleet-requirements-resource-center-applicability. Notes: AFVs = alternative fuel vehicles. LGHG vehicles = low greenhouse gas emitting vehicles. LLVs = Long-AFVs = alternative fuel vehicles. LGHG vehicles = low greenhouse gas emitting vehicles. LLVs = Long-
Life Vehicles. NGDVs = Next Generation Delivery Vehicles. ZEVs = zero-emission vehicles. Plug-in hybrid-Life Vehicles. NGDVs = Next Generation Delivery Vehicles. ZEVs = zero-emission vehicles. Plug-in hybrid-
electric vehicles may count toward ZEVs requirements due to the possibility to be operated solely on electricity. electric vehicles may count toward ZEVs requirements due to the possibility to be operated solely on electricity.
Exceptions exist in statute for certain requirements. This table does not reflect all fleet or energy related Exceptions exist in statute for certain requirements. This table does not reflect all fleet or energy related
requirements. requirements.
Federal Federal ~~agencies~~fleets, including , including ~~USPS~~the USPS fleet, must meet certain vehicle fleet acquisition goals. These , must meet certain vehicle fleet acquisition goals. These
include requiring LGHG vehicles for all new light- and medium-duty vehicle acquisitions, and include requiring LGHG vehicles for all new light- and medium-duty vehicle acquisitions, and
requiring 75% alternative fuel vehicles for new light-duty vehicle acquisitions, though these requiring 75% alternative fuel vehicles for new light-duty vehicle acquisitions, though these
~~requirements do not apply to LLVs and NGDVs, which are classified as heavy-duty vehicles.30~~
~~For FY2021, OMB reported 0.9% AFVs for new USPS fleet acquisitions. Unlike these existing~~
~~requirements, a new goal in Executive Order 14057 directs the federal government to transition to~~

~~30 Alternative fuel vehicles include those powered by electricity, hydrogen, natural gas, propane, and biofuels, as well~~
~~as hybrid vehicles that may also be powered in part by petroleum-based fuels. Federal fleets may be permitted to~~
~~acquire a smaller percentage as long as the overall federal fleet meets the requirements (P.L. 102-486).~~
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~~100% zero-emission vehicle acquisitions across vehicle classes by 2035.31 Achieving such a goal~~
~~may pose additional financial and logistical challenges for the USPS fleet.~~
Congressional Research Service 8 U.S. Postal Service Fleet Modernization requirements do not apply to LLVs and NGDVs, which are classified as heavy-duty vehicles.33 For FY2021, OMB reported 0.9% AFVs for new USPS fleet acquisitions. The incorporation of increasing numbers of BEVs into the USPS fleet has the potential for dual The incorporation of increasing numbers of BEVs into the USPS fleet has the potential for dual
impact on the impact on the ~~agency~~fleet’s progress toward federal requirements and goals. Greater use of BEVs ’s progress toward federal requirements and goals. Greater use of BEVs
could contribute to a reduction in petroleum consumption. Also, a transition could contribute to could contribute to a reduction in petroleum consumption. Also, a transition could contribute to
an increase in overall electricity consumption, potentially necessitating greater electricity an increase in overall electricity consumption, potentially necessitating greater electricity
generation from renewable energy sources. In FY2021, USPS derived 4.5% of its annual generation from renewable energy sources. In FY2021, USPS derived 4.5% of its annual
electricity from renewable energy sources—the federal requirement is 7.5%electricity from renewable energy sources—the federal requirement is 7.5%~~.32 Additionally,~~
~~Executive Order 14057 directs the federal government to transition to 100% “carbon pollution-~~
~~free energy” by 2030.33~~, though USPS is excepted from meeting this requirement.34 Despite the potential financial and logistical challenges, depending on the Despite the potential financial and logistical challenges, depending on the
electric generation mix, a shift toward BEVs may contribute to progress in increasing renewable electric generation mix, a shift toward BEVs may contribute to progress in increasing renewable
energy sources, increasing alternative fuel consumption, decreasing overall fuel consumption, and energy sources, increasing alternative fuel consumption, decreasing overall fuel consumption, and
USPS’s own goals for carbon pollution-free electricity and reduced GHGs emissions from the USPS’s own goals for carbon pollution-free electricity and reduced GHGs emissions from the
fleet and fleet and ~~agency~~USPS as a whole. as a whole.3435
USPS Fleet Modernization and Vehicle
Replacement
Since 2015, USPS has engaged in activities to modernize its delivery and collection fleet, Since 2015, USPS has engaged in activities to modernize its delivery and collection fleet,
specifically to replace its unique right-hand drive LLVs. The multiyear acquisition strategy specifically to replace its unique right-hand drive LLVs. The multiyear acquisition strategy
includes the design and production of a new class of right-hand drive delivery vehicles—includes the design and production of a new class of right-hand drive delivery vehicles—
NGDVs—to replace LLVs. Following some delays in awarding the contract, in February 2021, NGDVs—to replace LLVs. Following some delays in awarding the contract, in February 2021,
USPS awarded a 10-year contract to Oshkosh Defense to design and assemble 50,000 to 165,000 USPS awarded a 10-year contract to Oshkosh Defense to design and assemble 50,000 to 165,000
NGDVs, with the first deployment of NGDVs potentially as soon as 2023.NGDVs, with the first deployment of NGDVs potentially as soon as 2023.3536 Design requirements Design requirements
for NGDVs included improved fuel efficiency, space adjustments for the growing volume of for NGDVs included improved fuel efficiency, space adjustments for the growing volume of
packages, and additional technological features.packages, and additional technological features.3637 In 2022, USPS announced plans to purchase In 2022, USPS announced plans to purchase
34,500 COTS vehicles, to include as many BEVs as available and compatible, though any of the 34,500 COTS vehicles, to include as many BEVs as available and compatible, though any of the
special right-hand drive vehicles are likely to be internal combustion engine vehicles (ICEVs).special right-hand drive vehicles are likely to be internal combustion engine vehicles (ICEVs).3738
This contract is of interest to Congress and received scrutiny from some Members for the large This contract is of interest to Congress and received scrutiny from some Members for the large
share of ICEVs among NGDVs, which was discussed in congressional hearings.share of ICEVs among NGDVs, which was discussed in congressional hearings.38

~~31 Executive Order 14057, “Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability,” 86~~ ~~Federal~~
~~Register~~ ~~70935, December 13, 2021.~~
3239 33 Alternative fuel vehicles include those powered by electricity, hydrogen, natural gas, propane, and biofuels, as well as hybrid vehicles that may also be powered in part by petroleum-based fuels. Federal fleets may be permitted to acquire a smaller percentage as long as the overall federal fleet meets the requirements (P.L. 102-486). 34 EPAct92 §151 defines agency to exclude USPS. According to EPAct05 (P.L. 109-58), of the total electric energy consumed by the federal government, 7.5% is According to EPAct05 (P.L. 109-58), of the total electric energy consumed by the federal government, 7.5% is
required to come from renewable energy sources (see 42 U.S.C. §15852). The Energy Act of 2020 (Division Z of P.L. required to come from renewable energy sources (see 42 U.S.C. §15852). The Energy Act of 2020 (Division Z of P.L.
116-260) amended the definition of “renewable energy” to include thermal energy such as that produced from 116-260) amended the definition of “renewable energy” to include thermal energy such as that produced from
~~geothermal resources. In FY2021, USPS procured 4.5% of electricity generated from renewable energy sources. See~~
~~also 42 U.S.C. §15852.~~
~~33 Executive Order 14057.~~
34geothermal resources. 35 USPS, USPS, Sustainability Implementation Plan, October 2022, https://www.sustainability.gov/usps.html. , October 2022, https://www.sustainability.gov/usps.html.
3536 USPS, “U.S. Postal Service Awards Contract to Launch Multi-Billion-Dollar Modernization of Postal Delivery USPS, “U.S. Postal Service Awards Contract to Launch Multi-Billion-Dollar Modernization of Postal Delivery
Vehicle Fleet,” February 23, 2021. USPS, OIG, Vehicle Fleet,” February 23, 2021. USPS, OIG, Delivery Vehicle Acquisition Strategy. .
3637 USPS, “USPS Intends to Deploy Over 66,000 Electric Vehicles by 2028, Making One of the Largest Electric Vehicle USPS, “USPS Intends to Deploy Over 66,000 Electric Vehicles by 2028, Making One of the Largest Electric Vehicle
Fleets in the Nation,” December 20, 2022. Fleets in the Nation,” December 20, 2022.
3738 Ibid.; and USPS, “USPS Statement on Next Generation Delivery Vehicles Prototype Selection and Request for Ibid.; and USPS, “USPS Statement on Next Generation Delivery Vehicles Prototype Selection and Request for
Proposal for Commercial Off-the-Shelf Delivery Vehicles,” January 2015, https://about.usps.com/news/statements/Proposal for Commercial Off-the-Shelf Delivery Vehicles,” January 2015, https://about.usps.com/news/statements/
091616.htm. 091616.htm.
3839 U.S. Congress, U.S. Congress, Legislative Proposals to Put the Postal Service on Sustainable Financial Footing; and U.S. Congress, ; and U.S. Congress,
It’s Electric: Developing the Postal Service Fleet of the Future. .
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Environmental Analysis
In December 2021, USPS completed an EIS for its vehicle acquisition plan, in accordance with In December 2021, USPS completed an EIS for its vehicle acquisition plan, in accordance with
the National Environmental Policy Act, as a major federal action that has been determined to have the National Environmental Policy Act, as a major federal action that has been determined to have
a significant effect on the quality of the human environment.a significant effect on the quality of the human environment.3940 The analysis compared the The analysis compared the
expected environmental impacts of four acquisition scenarios (aside from taking no action): expected environmental impacts of four acquisition scenarios (aside from taking no action):
1. the USPS-proposed drivetrain mix of 10% battery-electric NGDVs and 90% 1. the USPS-proposed drivetrain mix of 10% battery-electric NGDVs and 90% ~~internal~~
internal combustion engine NGDVs; combustion engine NGDVs;
2. 100% battery-electric NGDVs; 2. 100% battery-electric NGDVs;
3. 100% internal combustion engine COTS vehicles (no NGDVs); and 3. 100% internal combustion engine COTS vehicles (no NGDVs); and
4. 100% battery-electric COTS vehicles (no NGDVs). 4. 100% battery-electric COTS vehicles (no NGDVs).
Comparing the two NGDV scenarios, the analysis concluded that the 10% BEVs with 90% Comparing the two NGDV scenarios, the analysis concluded that the 10% BEVs with 90%
ICEVs scenario was preferred by USPS, in large part due to the cost. The total cost over 20 years ICEVs scenario was preferred by USPS, in large part due to the cost. The total cost over 20 years
for 75,000 NGDVs was estimated to be $2.3 billion more for 100% BEVs compared to the for 75,000 NGDVs was estimated to be $2.3 billion more for 100% BEVs compared to the
preferred 10% BEVs scenario.preferred 10% BEVs scenario.4041 However, the analysis also estimated for 165,000 NGDVs that However, the analysis also estimated for 165,000 NGDVs that
the 100% BEVs scenario would reduce fuel consumption (not counting energy used for electricity the 100% BEVs scenario would reduce fuel consumption (not counting energy used for electricity
generation) by 135 million gallons annually compared to 25 million gallons in the 10% BEVs generation) by 135 million gallons annually compared to 25 million gallons in the 10% BEVs
scenario.scenario.4142 These reductions in fuel consumption would be associated with an estimated reduction These reductions in fuel consumption would be associated with an estimated reduction
in GHGs of 865,000 metric tons of CO2e for the 100% BEV scenario compared to 290,000 metric in GHGs of 865,000 metric tons of CO2e for the 100% BEV scenario compared to 290,000 metric
tons of CO2e for the 10% BEV scenario.tons of CO2e for the 10% BEV scenario.4243
The EIS received a number of responses from EPA, several states’ attorneys general, and The EIS received a number of responses from EPA, several states’ attorneys general, and
environmental groups.environmental groups.4344 These were followed by various USPS announcements regarding These were followed by various USPS announcements regarding
changes to the number and types of vehicles to be acquired. At the end of 2022, USPS had changes to the number and types of vehicles to be acquired. At the end of 2022, USPS had
committed to acquiring at least 60,000 NGDVs, and increasing the share of battery-electric committed to acquiring at least 60,000 NGDVs, and increasing the share of battery-electric
NGDVs from 10% to 50%.NGDVs from 10% to 50%.4445 Additionally, USPS announced $2.3 billion for an interim plan to Additionally, USPS announced $2.3 billion for an interim plan to
acquire 68,000 COTS—including 30,000 right-hand drive vehicles—to add or replace delivery acquire 68,000 COTS—including 30,000 right-hand drive vehicles—to add or replace delivery
and collection vehicles while waiting on production of NGDVs.and collection vehicles while waiting on production of NGDVs.4546 The intended BEV share for the The intended BEV share for the
overall vehicle acquisition overall vehicle acquisition iswas 40%. 40%.4647

3940 USPS, USPS, Final Environmental Impact Statement, December 2021; and EPA, “National Environmental Policy Act , December 2021; and EPA, “National Environmental Policy Act
Review Process,” updated October 5, 2022, https://www.epa.gov/nepa/national-environmental-policy-act-review-Review Process,” updated October 5, 2022, https://www.epa.gov/nepa/national-environmental-policy-act-review-
process#EIS. process#EIS.
4041 Total costs included vehicle purchase, charging infrastructure, estimated fuel and utility costs, and maintenance, Total costs included vehicle purchase, charging infrastructure, estimated fuel and utility costs, and maintenance,
among other expenses. USPS, among other expenses. USPS, Final Environmental Impact Statement, December 2021, p. 3-1. , December 2021, p. 3-1.
4142 The analysis did not attribute to BEVs the fuel or energy that would be used to generate the electricity necessary to The analysis did not attribute to BEVs the fuel or energy that would be used to generate the electricity necessary to
charge. USPS, charge. USPS, Final Environmental Impact Statement, December 2021, Table G-3, “Estimated Fuel Consumption , December 2021, Table G-3, “Estimated Fuel Consumption
Comparison of Existing 165,000 Delivery Vehicles and the Proposed Action ICE Hypothetical Maximum (90% ICE Comparison of Existing 165,000 Delivery Vehicles and the Proposed Action ICE Hypothetical Maximum (90% ICE
NGDV and 10% BEV [NGDV]).” NGDV and 10% BEV [NGDV]).”
4243 USPS, USPS, Final Environmental Impact Statement, December 2021, pp. 4-22 and 4-25. , December 2021, pp. 4-22 and 4-25.
4344 USPS, USPS, Record of Decision and Record of Environmental Consideration, Next Generation Delivery Vehicle
Acquisitions, February 23, 2022, https://uspsngdveis.com/documents/, February 23, 2022, https://uspsngdveis.com/documents/
USPS%20NGDV%20Acquisitions%20NEPA%20Record%20of%20Decision_2.23.22.pdf. USPS%20NGDV%20Acquisitions%20NEPA%20Record%20of%20Decision_2.23.22.pdf.
4445 USPS, USPS, 2022 Sustainability Implementation Plan, October 2022, p. 2; and USPS, “USPS Intends to Deploy Over , October 2022, p. 2; and USPS, “USPS Intends to Deploy Over
66,000 Electric Vehicles by 2028, Making One of the Largest Electric Vehicle Fleets in the Nation,” December 20, 66,000 Electric Vehicles by 2028, Making One of the Largest Electric Vehicle Fleets in the Nation,” December 20,
2022. 2022.
4546 USPS, USPS, Delivery Vehicle Acquisition Strategy, p. 5. , p. 5.
4647 USPS, USPS, 2022 Sustainability Implementation Plan, October 2022, p. 2. , October 2022, p. 2.
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In September 2023, USPS published a Final Supplemental Environmental Impact Statement that further modified the acquisition plan, analyzing two alternatives alongside the preferred scenario of 10% battery-electric NGDV from the final EIS:48 1. A mix of NGDVs and COTS totaling 106,480 delivery vehicles over six years with an intended BEV share of 62%, and 2. 100% NGDVs totaling 106,480 delivery vehicles over eight years with an intended BEV share of 62%. According to the Final Supplemental Environmental Impact Statement, the proposed increases to the share of BEVs are in part a response to funding made available by the IRA for USPS to purchase ZEVs and related infrastructure.49 Challenges and Opportunities for Fleet
Modernization
The modernization of the USPS fleet presents a range of challenges and opportunities. As a The modernization of the USPS fleet presents a range of challenges and opportunities. As a
primarily self-funded primarily self-funded ~~agency~~independent agency of the executive branch, USPS faces significant financial pressures. The plan to replace , USPS faces significant financial pressures. The plan to replace
LLVs has necessitated the design and production of a new vehicle. This process has experienced a LLVs has necessitated the design and production of a new vehicle. This process has experienced a
number of delays for replacing the vehicles that are among the oldest in the USPS fleet. USPS number of delays for replacing the vehicles that are among the oldest in the USPS fleet. USPS
faces additional challenges with vehicle electrification, and with achieving a 100% ZEV fleet faces additional challenges with vehicle electrification, and with achieving a 100% ZEV fleet
more broadly. The acquisition of BEVs also faces consideration alongside the costs of acquiring more broadly. The acquisition of BEVs also faces consideration alongside the costs of acquiring
and installing related charging infrastructure. and installing related charging infrastructure.
As As ~~USPS~~the fleet incorporates BEVs, incorporates BEVs, ~~the agency~~USPS may face increased electricity costs or peak demand may face increased electricity costs or peak demand
fees, which may be mitigated through developing charging plans based on daily routes and fees, which may be mitigated through developing charging plans based on daily routes and
charging needs.charging needs.4750 Some types of electricity generation projects and energy storage projects that Some types of electricity generation projects and energy storage projects that
might support other sustainability goals, such as onsite electricity generation with battery energy might support other sustainability goals, such as onsite electricity generation with battery energy
storage systems or partnerships with utilities and local governments, may also help to reduce storage systems or partnerships with utilities and local governments, may also help to reduce
energy costs associated with the operation and administration of BEVs. energy costs associated with the operation and administration of BEVs.
The manner in which USPS addresses these challenges presents an opportunity for USPS to The manner in which USPS addresses these challenges presents an opportunity for USPS to
become a leader in operating and managing large electric vehicle fleets. One of USPS’s strategic become a leader in operating and managing large electric vehicle fleets. One of USPS’s strategic
areas of focus from its 10-year Delivery for America Plan (issued in March 2021) is to areas of focus from its 10-year Delivery for America Plan (issued in March 2021) is to
“modernize [the] delivery vehicle fleet, and with Congressional support, implement [an] electric “modernize [the] delivery vehicle fleet, and with Congressional support, implement [an] electric
fleet by 2035.”fleet by 2035.”4851
Policy changes could also play a role in facilitating fleet modernization for USPS. For example, Policy changes could also play a role in facilitating fleet modernization for USPS. For example,
the federal government could offer additional financial support or offer technical assistance for the federal government could offer additional financial support or offer technical assistance for
USPS to recover certain costs through installation and operation of publicly accessible charging USPS to recover certain costs through installation and operation of publicly accessible charging
stations. Additionally, USPS could work with federal and state regulators to develop flexible stations. Additionally, USPS could work with federal and state regulators to develop flexible
emissions standards that account for the unique challenges and characteristics of the USPS fleet. emissions standards that account for the unique challenges and characteristics of the USPS fleet.
~~Additionally, policymakers and stakeholders may explore the extent to which USPS fleet~~
~~modernization could benefit from a comprehensive and collaborative approach. Working with~~
~~stakeholders across the federal government, state and local governments, and the private sector~~
~~could help USPS identify and pursue innovative solutions to incorporate BEVs and other ZEVs,~~
~~achieve federal and agency requirements and goals, and improve USPS’s provision of the~~
~~essential service of mail and package delivery across the country.~~

47 48 USPS, Final Supplemental Environmental Impact Statement. 49 Ibid. 50 For an example of federal planning for BEV charging, see DOE, For an example of federal planning for BEV charging, see DOE, ~~Federal Energy Management Program (FEMP),~~
FEMP, “EVSE [Electric Vehicle Supply Equipment] Upgrades in NREL’s [National Renewable Energy Laboratory’s] Parking “EVSE [Electric Vehicle Supply Equipment] Upgrades in NREL’s [National Renewable Energy Laboratory’s] Parking
Garage Generate Financial Benefits,” https://www.energy.gov/node/4378375. Garage Generate Financial Benefits,” https://www.energy.gov/node/4378375.
4851 USPS, USPS, FY2022 Annual Report to Congress. .
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Additionally, policymakers and stakeholders may explore the extent to which USPS fleet modernization could benefit from a comprehensive and collaborative approach. Working with stakeholders across the federal government, state and local governments, and the private sector could help USPS identify and pursue innovative solutions to incorporate BEVs and other ZEVs, achieve requirements and goals, and improve USPS’s provision of the essential service of mail and package delivery across the country.
Author Information

Melissa N. Diaz Melissa N. Diaz

Analyst in Energy Policy Analyst in Energy Policy

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