July 20, 2022

Postal Service Modernization Enables Expanded Electric Vehicle Opportunity

  • The Postal Service announces change of scope of the Supplemental Environmental Impact Statement (SEIS) for its Next Generation Delivery Vehicles (NGDVs) to further reflect network refinements, route optimization, and financial improvements that will support a shortened delivery vehicle procurement strategy interval
  • Under the adjusted scope, at least 50 percent of newly ordered NGDVs in the current contract are expected to be battery electric vehicles (BEVs)
  • The Postal Service commits to evaluate vehicle mix and purchase capability in shorter intervals as technology evolves and the organization’s financial and operational picture improve
  • The Postal Service expects a procurement of 34,500 commercial off-the-shelf (COTS) vehicles to supplement the current purpose-built NGDV order, including as many BEVs as are commercially available, and satisfy operational needs
  • The Postal Service expects that at least 40 percent of the total quantity of NGDVs and COTS vehicles covered by the SEIS will be BEVs 

WASHINGTON — The U.S. Postal Service today announced it anticipates adjusting the purchase interval and composition of its delivery fleet. The adjustments reflect refinements to the Postal Service’s overall network modernization, route optimizations, improved facility electric infrastructure, and availability of vehicles and technology. The proposed expanded fleet mix will include purpose built Next Generation Delivery Vehicles (NGDVs) and commercial off-the-shelf (COTS) vehicles, and the network adjustments and attendant economies will facilitate substantially increased deployment of battery electric vehicles (BEVs). 

In February 2022, the Postal Service completed its obligations under the National Environmental Policy Act process and issued a Record of Decision to acquire up to 165,000 NGDV, with a commitment for at least 10 percent BEV. This decision was expressly designed to provide the Postal Service the flexibility to acquire significantly more BEV NGDV should financial and operational circumstances permit. Pursuant to this decision, the Postal Service then announced in March 2022 a purchase of 50,000 NGDV from Oshkosh Defense, including 20 percent BEVs.

Now, under the new adjusted scope for the Supplemental Environmental Impact Statement (SEIS), the Postal Service proposes to limit its Decision to the 50,000 NGDV already purchased and to raise the minimum NGDV BEV percentage to at least 50 percent. Because of the critical and immediate need to accelerate the replacement of our aging fleet in accordance with the Delivering for America plan, and the purpose and scope of the Environmental Impact Statement (EIS) process, the Postal Service is also proposing to purchase, over a 2-year period, 34,500 COTS vehicles. Additional purchases of NGDVs under the current contract or other COTS vehicles will be analyzed in future supplements to the EIS prior to such purchases. The Postal Service anticipates evaluating and procuring vehicles over shorter time periods to be more responsive to its evolving operational strategy, technology improvements, and changing market conditions, including the expected increased availability of BEV options in the future.

In total, of the above 84,500 NGDV and COTS vehicles, the Postal Service anticipates having at least 40 percent BEV. The Postal Service reiterates its commitment to the fiscally responsible roll-out of electric-powered vehicles for America’s largest and oldest federal fleet. New NGDVs are expected to start servicing postal routes in late 2023.

As a result of this announcement, the Postal Service is extending the public comment period for its NGDV SEIS. The public hearing will now be held Monday, Aug. 8, at 7pm ET. Registration for the public hearing can be found at uspsngdveis.com/. The public comment period has been extended until Aug. 15. 

Additional information can be found at https://www.federalregister.gov/public-inspection/2022-15616/environmental-impact-statements-availability-etc-supplement-to-the-next-generation-delivery-vehicles.

The Postal Service generally receives no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations.



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