Thursday, 23 January 2025
Home Topics Transport Automotive US Postal Service chief defends plan to buy rising number of EVs
AutomotiveElectric Vehicles (EVs)EmissionsEnvironmentLiquefied Natural GasNatural GasNewsPolitics

US Postal Service chief defends plan to buy rising number of EVs

44
U.S. Postmaster General Louis DeJoy responds to a question during an interview with Reuters at the U.S. Postal Service Headquarters in Washington, U.S., April 20, 2022. Picture taken April 20, 2022. REUTERS/Leah Millis/File Photo
U.S. Postmaster General Louis DeJoy responds to a question during an interview with Reuters at the U.S. Postal Service Headquarters in Washington, U.S., April 20, 2022. — REUTERS/Leah Millis/File Photo

By David Shepardson

WASHINGTON (Reuters) -U.S. Postmaster General Louis DeJoy defended plans to buy a rising number of electric delivery vehicles and said he did not plan to return funding earmarked for zero-emission models without legislation from Congress.

In 2023, Congress gave USPS $3 billion as part of a $430 billion climate bill to buy EVs and charging infrastructure — including $1.2 billion for electric vehicles. It plans to buy some 66,000 electric vehicles by 2028.

DeJoy said at a U.S. House of Representatives hearing on Tuesday that the EV purchase plan makes business sense for USPS.

Reuters reported last week that Donald Trump’s transition team is considering seeking the cancellation of USPS contracts to electrify its delivery fleet, as part of a broader suite of executive orders targeting electric vehicles, citing three sources familiar with the plans.

Sources told Reuters Trump’s team is reviewing how it can unwind the postal service’s multibillion-dollar contracts, including with Oshkosh to build next-generation delivery vehicles and Ford.

Representative William Timmons, a South Carolina Republican who represents the district that is home to the Oshkosh plant building the EVs, said USPS should revert to its prior plan to buy 90% gas-powered vehicles, but not cancel the contract.

“There’s no reason that we should spend a billion plus more dollars to impose a green new deal mandate on the Post Office,” Timmons said. “I can promise you that Congress is about to fix it. I look forward to working with the incoming Trump administration to right this ship.”

DeJoy said any change “has to be legislation.”

Oshkosh is expected to deliver about 45,000 next-generation electric vehicles and 21,000 off-the-shelf EVs, including 9,250 Ford E-Transit EVs.

DeJoy said USPS bought 28,000 vehicles this year, 22,000 of them gas-powered. He said purchases in 2025 will be around “50-50” EVs and gas-powered. USPS has said next-generation delivery vehicles bought starting in 2026 are expected to be all-EVs.

DeJoy said USPS is paying about $20,000 more for the Oshkosh next-generation delivery EVs and about $10,000 more for off-the-shelf EVs over gas-powered models.

In 2021, President Joe Biden issued an executive order setting a goal that 50% of all new passenger cars and light trucks would be zero-emission vehicles by 2030, and that light-duty cars and trucks acquired by the government will be emission-free by 2027. Those rules do not apply to the Postal Service, since it is an independent federal agency.

USPS said in 2022 it expects to spend $9.6 billion on vehicle acquisitions through 2028.

(Reporting by David ShepardsonEditing by Bill Berkrot)

Related Articles

FILE PHOTO: U.S. President Donald Trump delivers remarks on AI infrastructure at the Roosevelt room at White House in Washington, U.S., January 21, 2025.  REUTERS/Carlos Barria/File Photo
ElectricityFuelPolitics

Senate panel easily approves Trump’s picks to run energy, interior departments

By Timothy Gardner WASHINGTON (Reuters) -U.S. Senate committees on Thursday approved President...

FILE PHOTO: A pumpjack operates at the Vermilion Energy site in Trigueres, France, June 14, 2024. REUTERS/Benoit Tessier/File photo
BusinessOil

Oil prices extend losses on uncertainty over Trump tariff impact

By Nicole Jao NEW YORK (Reuters) – Oil fell on Thursday after...

FILE PHOTO: Suntory Holdings CEO Takeshi Niinami who is also the Chairperson of Japan Association of Corporate Executives, also known as Keizai Doyukai in Japan, speaks during a Reuters Newsmaker event in Tokyo, Japan September 11, 2024.  REUTERS/Issei Kato/File Photo
ElectionsManufacturingTrade

Japan firms must prepare for Trump tariff fallout, Suntory chief says in Davos

Japanese companies remain bullish about investing in the U.S. but need to...

Login into your Account

Please login to like, dislike or bookmark this article.