USPS Could Get $6 Billion To Spend On Electric Vehicles

The U.S. Postal Service (USPS) could be awarded $6 billion to buy tens of thousands of electric delivery vehicles.

Legislation introduced by a group of 17 U.S. House Democrats earlier in the week stipulates that at least 75 per cent of the USPS fleet would need to be made up of electric or zero-emission vehicles.

The bill would also require 50 per cent of the postal service’s medium/heavy-duty vehicle purchases to be for EVs or zero-emission vehicles through 2029. After January 2040, all new USPS vehicles would need to be zero-emission vehicles.

The contract would involve between 50,000 and 165,000 vehicles over 10 years.

Backing the legislation includes chair of the Transportation and Infrastructure Committee, Representative Peter DeFazio, and Representative Carolyn Maloney who chairs the Oversight and Reform Committee that oversees USPS, Reuters reports.

Read Also: Workhorse Group Shares Drop Nearly 50% After Company Misses Out On USPS Contract

“We welcome and are interested in any support from Congress that advances the goal of a Postal Service vehicle fleet with zero emissions, and the necessary infrastructure required to operate it,” the USPS said in a statement issued on Monday. “With the right level of support, the majority of the Postal Service’s fleet can be electric by the end of the decade.”

News of this legislation comes a week after the USPS awarded a $482 million supply contract to military vehicle maker Oshkosh Defense to produce the service’s next-generation postal vehicle. In doing so, the USPS shunned Workhorse Group which was considered a front-runner in supply talks.

Shares of Workhorse Group jumped by 13 per cent following reports of the $6 billion cash injection into the USPS.