Bill looks to invest $2 Billion in electric vehicles for US Postal Service

The U.S. Postal Service would become the guinea pig for testing 20,000 electric vehicles under House legislation introduced Dec. 17.

If approved, the bill would help the Postal Service green its large mail delivery fleet and jumpstart the nation's electric vehicle industry, said Rep. José Serrano, D-N.Y., who introduced the legislation along with five cosponsors.

The bill would provide up to $2 billion for an Energy Department program in which vehicle manufacturers would compete for grants to build electric vehicles for testing by the Postal Service.

USPS has the largest fleet in the world with 220,000 vehicles that consume 121 Million gallons of fuel costing $1.3 Billion annually. Due to the low average speed of these delivery vehicles they achieve only 10.4 MPG. A shift to EVs is expected to reduce the fuel bill by 66%, leading to an annual saving of $860 Million.

"Our nation must become a leader in green technologies and leveraging the enormous assets of the USPS provides us with a direct route toward that goal," said Serrano, who chairs the House Appropriations subcommittee that oversees the Postal Service.

The Postal Service maintains the largest civilian vehicle fleet in the world with about 221,000 vehicles. Although the Postal Service has been purchasing alternative fuel vehicles and testing some electric drive vehicles, it has held off on replacing the bulk of its petroleum-powered fleet until one technology emerges as the leading replacement.

The bill won immediate support from the American Postal Workers Union, the U.S. Postal Regulatory Commission and the Federal Energy Regulatory Commission.

"It will be good for the Postal Service, good for the environment and good for the economy," APWU President William Burrus said.