U.S. Postal Service Fleet Modernization

U.S. Postal Service Fleet Modernization

Updated October 27, 2023

Congressional Research Service

https://crsreports.congress.gov

R47820

SUMMARY

U.S. Postal Service Fleet Modernization

R47820

October 27, 2023

The United States Postal Service (USPS) is an independent agency of the executive branch

responsible for providing reliable, affordable, universal mail delivery across the United States.

Melissa N. Diaz

One critical element of USPS’s operations is its vehicle fleet, which had more than 235,000

Analyst in Energy Policy

vehicles in FY2022, including specialized local delivery trucks, passenger cars, and tractortrailers. In FY2022, fuel consumption was 221 million gallons of gasoline equivalent, with

gasoline or diesel making up 99%. USPS fleet greenhouse gas emissions (GHGs) made up 70%

of overall GHGs for federal 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.

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

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

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

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

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,

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

(COTS)—including 30,000 right-hand drive vehicles—to add to or replace delivery and collection vehicles while waiting on

NGDV production, 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 to a number of federal

requirements and goals around fleet acquisitions, fuel efficiency, fuel consumption, and greenhouse gas emissions.

Modernization efforts may help the USPS fleet to reduce fuel consumption, increase fuel efficiency, reduce greenhouse gas

emissions, and meet federal requirements and goals.

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Contents

Introduction ..................................................................................................................................... 1

Overview of the USPS Fleet............................................................................................................ 3

Fuel Consumption and Greenhouse Gas Emissions .................................................................. 5

Fleet Management Requirements and Goals ................................................................................... 7

USPS Fleet Modernization and Vehicle Replacement..................................................................... 9

Environmental Analysis .......................................................................................................... 10

Challenges and Opportunities for Fleet Modernization ................................................................. 11

Figures

Figure 1. Long-Life Vehicle (LLV) and Next Generation Delivery Vehicle (NGDV) .................... 2

Figure 2. United States Postal Service (USPS) Vehicle Fleet ......................................................... 4

Figure 3. United States Postal Service (USPS) Vehicles by Fuel Type ........................................... 5

Figure 4. USPS Fleet Greenhouse Gas Emissions .......................................................................... 6

Tables

Table 1. United States Postal Service (USPS) Fleet Alternative Fuel Consumption ....................... 6

Table 2. Selected Federal Fleet Management Requirements ........................................................... 8

Contacts

Author Information........................................................................................................................ 12

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Introduction

The United States Postal Service (USPS) is an independent agency of the executive branch1

responsible for providing reliable, affordable, universal mail delivery across the United States. In

FY2022, USPS handled more than 127 billion pieces of mail, including letter mail, packages,

periodicals, marketing mail, and international mail.2 USPS is primarily self-funded by revenue—

roughly $78.5 billion in FY2022—from the sale of postal products and services, with Congress

providing an annual appropriation—roughly $50 million in FY2023—as reimbursement for free

mailing services provided to the blind and certain overseas voters.3 Congress has also provided

supplemental funding for expenses such as pandemic-related operating expenses in 2020 ($10

billion) and fleet modernization in 2022 ($3 billion).4

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

specialized local delivery trucks called Long-Life Vehicles (LLVs; see Figure 1, left panel).5

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,

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 19946—with

a 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

observations operating LLVs, largely related to the following:7

•

•

•

•

mitigating maintenance costs;

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

package volume); and

incorporating additional features, such as heating and cooling.

Since the release of its initial specifications, USPS has identified the process of modernizing the

LLV fleet as an opportunity to incorporate technology to reduce fleet greenhouse gas (GHG)

emissions,8 which may also contribute to reducing fuel consumption, among other federal goals

that apply to the USPS fleet. These aspects of fleet modernization are of particular interest to

Congress.

1 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, Reforming the U.S. Postal Service: Background and Issues for Congress, by Michelle D. Christensen.

4 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.

5 Vehicles are reported “in actual units indicated, unaudited”; USPS, FY2022 Annual Report to Congress, p. 29. LLVs

were most recently reported at the end of FY2019. USPS, Office of the Inspector General (OIG), Delivery Vehicle

Acquisition Strategy, Report Number 19-002-R20, August 12, 2020, p. 4, https://www.uspsoig.gov/sites/default/files/

reports/2023-01/19-002-R20.pdf.

6 USPS, Delivery Vehicle Acquisition Strategy, p. 4.

7 USPS, United States Postal Service Specification: Vehicle, Carrier Route, Right-Hand Drive [draft], January 20,

2015, https://sam.gov/opp/27b8b02f57923cf9f3f51f0563cab1bc/view.

8 USPS, “USPS Position on Next Generation Delivery Vehicles,” accessed December 22, 2022, https://about.usps.com/

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, Delivery Vehicle Acquisition Strategy, April 12, 2020,

p. 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,

including the following:

•

•

•

•

awarding a 10-year contract to Oshkosh Defense to design and assemble 50,000

to 165,000 NGDVs;9

announcing that 10% of NGDVs would be battery-electric vehicles (BEVs)10;

publishing a final Environmental Impact Statement (EIS) defending the selected

share of BEVs;11 and

purchasing an additional 34,500 vehicles—commercial-off-the-shelf vehicles

(COTS)—for more immediate replacement of LLVs and other delivery and

collections vehicles, and increasing the overall share of BEVs to approximately

50% across NGDVs and COTS.12

In 2022, USPS placed its initial order for 50,000 NGDVs, which included approximately 20%

BEVs.13 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

Vehicle Fleet,” February 23, 2021, https://about.usps.com/newsroom/national-releases/2021/0223-multi-billion-dollarmodernization-of-postal-delivery-vehicle-fleet.htm.

10 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.

11 USPS, Final Environmental Impact Statement for Purchase of Next Generation Delivery Vehicles, December 2021,

https://uspsngdveis.com/documents/USPS+NGDV+FEIS_Dec+2021.pdf.

12 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-intendsto-deploy-over-66000-electric-vehicles-by-2028.htm.

13 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/.

14 USPS, Final Supplemental Environmental Impact Statement for Next Generation Delivery Vehicle (NGDV)

Acquisitions, September 2023, https://uspsngdveis.com/documents/FinalNGDVSEIS.pdf.

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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 heavyduty vehicles, and mandate climate control units. Congress also held hearings to discuss fleet

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.16

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

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.17

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

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

of the largest fleets in the world,18 with 236,532 vehicles carrying out its mission and duties in

FY2022.19 As seen in Figure 2, delivery and collection vehicles made up the largest share (91%,

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).20 LLVs were designed with right-hand

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

attributes increasing maintenance costs—$5,007 per vehicle in FY2019—to these aging

vehicles.21 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

administrative services.

15 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, Legislative Proposals to Put the Postal Service on Sustainable Financial Footing; and U.S. Congress,

House Committee on Oversight and Reform, It’s Electric: Developing the Postal Service Fleet of the Future, 117th

Cong., 2nd sess., April 5, 2022.

17 For more information, see CRS Insight IN12003, Inflation Reduction Act of 2022: Incentives for Clean

Transportation, by Melissa N. Diaz.

18 General Services Administration (GSA), FY2022 Federal Fleet Open Data Set, Table 2-3, “Domestic and Foreign

Inventory.” Total domestic inventory was 617,575 and USPS inventory was 241,054.

19 Vehicles are reported “in actual units indicated, unaudited.” FY2022 Annual Report to Congress, p. 29.

20 As of September 30, 2019. USPS, Delivery Vehicle Acquisition Strategy, p. 4.

21 Ibid., p. 5.

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Figure 2. United States Postal Service (USPS) Vehicle Fleet

236,532 total vehicles in FY2022

Source: United States Postal Service (USPS), FY2022 Annual Report to Congress, p. 29, https://about.usps.com/

what/financials/annual-reports/fy2022.pdf.

Notes: 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.

As seen in Figure 3, when broken down by fuel type, gasoline- and diesel-powered vehicles

made up 87% of the overall fleet in FY2022.22 The majority of the remainder of the fleet

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,

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.23

22 GSA reported a total of 241,054 vehicles in the USPS fleet for FY2022. GSA, FY2022 Federal Fleet, Table 5-3,

“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:

diesel hybrid vehicles, gasoline or diesel plug-in hybrid-electric vehicles, hydrogen fuel cell vehicles, low-speed

electric vehicles, liquefied natural gas vehicles.

23 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

November 10, 2022, https://www.epa.gov/regulations-emissions-vehicles-and-engines/federal-fleets-using-lowgreenhouse-gas-emitting#define.

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Figure 3. United States Postal Service (USPS) Vehicles by Fuel Type

241,054 total vehicles in FY2022

Source: General Services Administration (GSA), FY2022 Federal Fleet Open Data Set, Table 5-3, “Vehicle

Inventory by Fuel Type.”

Notes: 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:

diesel hybrid-electric vehicles, gasoline and diesel plug-in hybrid-electric vehicles, hydrogen fuel cell vehicles, lowspeed 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

FY2022, followed by the Departments of Defense (15%) and Justice (6%).24 For USPS, more

than 99% of the 221 million gallons of gasoline equivalent (GGE) consumed was gasoline (189

million GGE) or diesel (31 million GGE).25 Alternative fuels made up less than 1% of fuel

consumption (summarized in Table 1). These fuels included E85, biodiesel (B20, a blend of

diesel with 20% biodiesel by volume), LPG, CNG, and electricity.

24 GSA, FY2022 Federal Fleet, Table 5-1, “Worldwide Fuel Consumption.” Department of Defense data includes

nontactical vehicles as reported to GSA and does not include tactical vehicles.

25 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

(GGE)

Share of USPS Fleet

Alternative Fuel Consumption

Biodiesel (B20)

632,441

71%

Ethanol (E85)

254,098

28%

Compressed Natural Gas (CNG)

8,644

1%

Liquefied Petroleum Gas (LPLG)

409

< 1%

Electricity

73

< 1%

Source: General Services Administration, FY2022 Federal Fleet Open Data Set, Table 5-1, “Worldwide Fuel

Consumption.”

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%).26 GHGs for the

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 (see Figure 4).

Figure 4. USPS Fleet Greenhouse Gas Emissions

Emissions in MMT CO2e and share of federal fleet emissions

Source: Department of Energy (DOE), Office of Energy Efficiency and Renewable Energy (EERE), “E-4 Scope 1

& 2 GHG [Greenhouse Gas] Emissions from Standard Operations (Targeted Emissions) by Sector and Category,

26 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/

Scope1And2GHGEmissionsSubjectToReductionTargetsByCategoryComparedToFY2008.aspx. GHGs from fleets

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

Department of Agriculture.

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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 million 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.

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

been observed to be 8.6 mpg.27 While official mileage ratings are useful for comparing vehicles,

actual mileage will depend on real-world driving conditions.28 As of 2021, USPS reported a

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

be a standard feature for NGDVs.29 Incorporating more battery-electric NGDVs may help the

USPS fleet reduce fuel consumption and GHGs emissions, and potentially help it meet

requirements and goals for federal fleets.

Fleet Management Requirements and Goals

The USPS fleet and related activities are subject to a number of federal requirements and goals

that govern the management and operation of government vehicle fleets, including fuel efficiency,

GHGs, fuel consumption, and fleet acquisitions. Table 2 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 Budget and Management (OMB) publishes scorecards and performance on energy

efficiency and sustainability goals annually.31 In FY2021, USPS missed the benchmarks for two

fueling metrics:

•

•

alternative fuel consumption was 51% less than the FY2005 baseline (federal

fleets are required to increase alternative fuels by 10% relative to the baseline);32

and

petroleum fuel consumption was 38% more than the FY2005 baseline (federal

fleets are required to reduce petroleum fuel by 20%), though it was 2.2% less

than FY2020.

27 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, Final

Environmental Impact Statement, December 2021, p. G-2, Table G-1.

28 FuelEconomy.gov, “Your Mileage Will Vary,” accessed May 31, 2023, https://www.fueleconomy.gov/feg/

why_differ.shtml.

29 USPS, Final Environmental Impact Statement, December 2021, p. 3-2.

30 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,”

https://www.sustainability.gov/pdfs/usps-scorecard-fy2021.pdf.

32 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

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

Sustainability, Fleet Petroleum and Alternative Fuel, figure, https://www.sustainability.gov/usps.html.

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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 acquisitions

(LLVs and NGDVs are classified as heavy

duty).

Section 303 of the Energy Policy Act of 1992 (EPAct92; 42 U.S.C.

§13212(b)(1)-(2))

Federal fleets should not acquire new

light- or medium-duty vehicles that are

not LGHG vehicles.

Section 141 of the Energy Independence and Security Act of 2007

(EISA; 42 U.S.C. §13212(f)(2))

Energy and Fueling Requirements

Alternative fuel consumption by federal

fleets must increase by 10% (FY2005

baseline by end of FY2015).

Section 142 of EISA (42 U.S.C. §6374e(a))

Petroleum fuel consumption must

decrease by 20% (FY2005 baseline by end

of FY2015).

Section 142 of EISA (42 U.S.C. §6374e(a))

Dual-fueled vehicles (e.g., flex-fuel

vehicles) must be operated on alternative

fuels.

Section 701 of the Energy Policy Act of 2005 (EPAct05; 42 U.S.C.

§6374(a)(3)(E))

Agency fleet refueling stations must have

at least one renewable fuel pump.

Section 246 of EISA (42 U.S.C. §17053(a)(c))

Refueling sites or stations providing

alternative fuels to federal fleets must be

publicly accessible.

Section 304 of EPAct92 (42 U.S.C. §13213(a)); Section 701 of

EPAct05 (42 U.S.C. §6374(c))

Planning and Reporting

Requirements

Agencies must develop plans to achieve

petroleum reduction and alternative fuel

consumption targets (e.g., Strategic

Sustainability Performance Plan, Federal

Fleet Fuel Consumption Plans).

Section 142 of EISA (42 U.S.C. §6374e(b))

Source: Department of Energy (DOE), Office Energy Efficiency and Renewable Energy (EERE), “Fleet

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,”

accessed September 29, 2023, https://www7.eere.energy.gov/femp/requirements/requirements_filtering/

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 = LongLife Vehicles. NGDVs = Next Generation Delivery Vehicles. ZEVs = zero-emission vehicles. Plug-in hybridelectric 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

requirements.

Federal fleets, including the USPS fleet, must meet certain vehicle fleet acquisition goals. These

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

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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

impact on the fleet’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 an

increase in overall electricity consumption, potentially necessitating greater electricity 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%, though USPS is excepted from

meeting this requirement.34 Despite the potential financial and logistical challenges, depending on

the 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 USPS’s own goals for carbon pollution-free electricity and reduced GHGs

emissions from the fleet and USPS as a whole.35

USPS Fleet Modernization and Vehicle

Replacement

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

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,

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 2023.36 Design requirements

for NGDVs included improved fuel efficiency, space adjustments for the growing volume of

packages, and additional technological features.37 In 2022, USPS announced plans to purchase

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).38

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.39

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 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 geothermal resources.

35 USPS, Sustainability Implementation Plan, October 2022, https://www.sustainability.gov/usps.html.

36 USPS, “U.S. Postal Service Awards Contract to Launch Multi-Billion-Dollar Modernization of Postal Delivery

Vehicle Fleet,” February 23, 2021. USPS, OIG, Delivery Vehicle Acquisition Strategy.

37 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.

38 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/

091616.htm.

39 U.S. Congress, Legislative Proposals to Put the Postal Service on Sustainable Financial Footing; 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

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.40 The analysis compared the

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%

internal combustion engine NGDVs;

2. 100% battery-electric NGDVs;

3. 100% internal combustion engine COTS vehicles (no NGDVs); and

4. 100% battery-electric COTS vehicles (no NGDVs).

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

for 75,000 NGDVs was estimated to be $2.3 billion more for 100% BEVs compared to the

preferred 10% BEVs scenario.41 However, the analysis also estimated for 165,000 NGDVs that

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

scenario.42 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

tons of CO2e for the 10% BEV scenario.43

The EIS received a number of responses from EPA, several states’ attorneys general, and

environmental groups.44 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

committed to acquiring at least 60,000 NGDVs, and increasing the share of battery-electric

NGDVs from 10% to 50%.45 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

and collection vehicles while waiting on production of NGDVs.46 The intended BEV share for the

overall vehicle acquisition was 40%.47

40 USPS, Final Environmental Impact Statement, December 2021; and EPA, “National Environmental Policy Act

Review Process,” updated October 5, 2022, https://www.epa.gov/nepa/national-environmental-policy-act-reviewprocess#EIS.

41 Total costs included vehicle purchase, charging infrastructure, estimated fuel and utility costs, and maintenance,

among other expenses. USPS, Final Environmental Impact Statement, December 2021, p. 3-1.

42 The analysis did not attribute to BEVs the fuel or energy that would be used to generate the electricity necessary to

charge. USPS, Final Environmental Impact Statement, December 2021, Table G-3, “Estimated Fuel Consumption

Comparison of Existing 165,000 Delivery Vehicles and the Proposed Action ICE Hypothetical Maximum (90% ICE

NGDV and 10% BEV [NGDV]).”

43 USPS, Final Environmental Impact Statement, December 2021, pp. 4-22 and 4-25.

44 USPS, Record of Decision and Record of Environmental Consideration, Next Generation Delivery Vehicle

Acquisitions, February 23, 2022, https://uspsngdveis.com/documents/

USPS%20NGDV%20Acquisitions%20NEPA%20Record%20of%20Decision_2.23.22.pdf.

45 USPS, 2022 Sustainability Implementation Plan, 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,

2022.

46 USPS, Delivery Vehicle Acquisition Strategy, p. 5.

47 USPS, 2022 Sustainability Implementation Plan, 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

primarily self-funded independent agency of the executive branch, 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 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 more broadly. The acquisition of BEVs also faces

consideration alongside the costs of acquiring and installing related charging infrastructure.

As the fleet incorporates BEVs, USPS may face increased electricity costs or peak demand fees,

which may be mitigated through developing charging plans based on daily routes and charging

needs.50 Some types of electricity generation projects and energy storage projects that 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 energy costs

associated with the operation and administration of BEVs.

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

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

fleet by 2035.”51

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

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

emissions standards that account for the unique challenges and characteristics of the USPS fleet.

48 USPS, Final Supplemental Environmental Impact Statement.

49 Ibid.

50 For an example of federal planning for BEV charging, see DOE, FEMP, “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.

51 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

Analyst in Energy Policy

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan

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under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other

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Congressional Research Service

R47820 · VERSION 4 · UPDATED

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