Finally, there will be no twists or last-minute changes. The play will be played as originally written, despite pressure and controversy.
The United States Postal Service (USPS) has confirmed its deal with specialty vehicle manufacturer Oshkosh Corp (OSK) to finalize plans for between 50,000 and 165,000 gas-powered delivery vehicles.
Why This Was A Controversial Decision
The USPS/Oshkosh venture had been in limbo after the Biden administration urged the United States Postal Service to reevaluate its plans to electrify only 10% of its fleet of more than 200,000 vehicles.
The White House was looking to pause and reevaluate the USPS contract, which could have a total value of $11.3 billion over 10 years.
Part of the pushback comes from growing frustration with President Joe Biden's pledge to transform the country's entire fleet of 645,000 vehicles into electric vehicles. Of that 645,000, around 225,000 are post office vehicles.
But the management of USPS has just closed that door and decided to move forward with its plan to purchase its next-generation mail trucks with nearly all gasoline-powered vehicles.
The majority of its current trucks have been in service for more than two decades.
"USPS concludes there is no legal or other basis to delay the NGDV (the Next Generation Delivery Vehicle) program," said the group in a press release.
“As we have reiterated throughout this process, our commitment to an electric fleet remains ambitious given the pressing vehicle and safety needs of our aging fleet as well as our fragile financial condition," said USPS chief executive officer Louis DeJoy.
"As our financial position improves with the ongoing implementation of our 10-year plan, Delivering for America, we will continue to pursue the acquisition of additional BEV as additional funding — from either internal or congressional sources — becomes available.”
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The Process Needs to Keep Moving Forward
Last year, the USPS awarded Oshkosh Corp a 10-year contract, with an initial $482 million investment.
That will be used to finalize the production design and construction of between 50,000 and 165,000 of the next generation of the mail service's iconic right-hand-drive delivery vehicles.
But DeJoy said the plans for the new fleet need to keep an ongoing momentum.
“The process needs to keep moving forward," he said. "The men and women of the U.S. Postal Service have waited long enough for safer, cleaner vehicles to fulfill on our universal service obligation to deliver to 161 million addresses in all climates and topographies six days per week.”
The contract does, however, call for the vehicles to be equipped with either fuel-efficient internal combustion engines or battery electric powertrains.
"The search for replacement vehicles for the Postal Service’s delivery fleet, which started in 2015, resulted in the purpose-built NGDVs that will deliver air conditioning and heating, improved ergonomics, and some of the most advanced vehicle and safety technology," the USPS said.
"The vehicles will also have increased cargo capacity to maximize efficiency and better accommodate higher mail and package volumes."
Criticism of the Deal Continues
The choice of the United States Postal Service had been widely criticized by the White House, the EPA and The Zero Emission Transportation Association, which represents manufacturers of electric vehicles such as Tesla (TSLA), Lucid (LCID) and Rivian (RIVN).
EPA and White House Council on Environmental Quality sent letters to USPS asking the group to reconsider its plans. California's top air quality regulator even called on the EPA to block the Postal Service from moving forward with that contract.
But USPS has so far rejected those claims, instead insisting its fleet will include EVs.
“We thank the federal agencies, including the EPA, for their input,” said Mark Guilfoil, vice president for Supply Management at the U.S. Postal Service.
“The NEPA (National Environmental Policy Act) process attracted more than 39,000 public comments from an array of stakeholders; involved coordination with various federal agencies, including EPA," he said.
"As a result of those comments we included extensions in the process timeline as requested by EPA," Guilfoil said.
"After thorough review and study we determined that EPA’s request for a supplemental EIS (Environmental Impact Statement) and public hearing would not add value to the Postal Service’s already year-long review. It is also important to note that a supplemental EIS and public hearing are not legally required.”
Transform the Country's Entire Fleet
The Oshkosh trucks are expected to burn about 110 million gallons of gasoline a year, an 18% drop in fuel consumption compared to the current model.
But several environmental groups have questioned the USPS claim that the electric Oshkosh trucks could travel 70 miles per charge. Most of the delivery vans on the market have a single charge range of well over 100 miles.
Transportation is the single largest source of greenhouse gas emissions in the U.S. Even with the recent push into electric vehicles, only 3% of U.S. vehicle purchases in 2021 were EVs.
