US Could Save Billions of Dollars By Electrifying Light-Duty Vehicles

The total number hit $4.3 billion in savings, including postal service electrification.
Loukia Papadopoulos

According to a new report from Atlas Public Policy released by the Electrification Coalition, the U.S. federal government could save more than $1 billion by replacing nearly all of its light-duty vehicles with electric options by the end of 2030.

The report also found that, by 2025, 40 percent of all non-Postal Service federal fleet vehicles could be replaced with electric vehicles at a lower total cost of ownership than comparable gas and diesel vehicles. That number increased to 97 percent for U.S. Postal Service (USPS) vehicles.

Furthermore, the report stated that electrification of non-USPS federal fleet vehicles could yield vehicle lifetime savings of as much as $1.18 billion. This number was increased to as much as $4.3 billion in savings for USPS electrification.

“The federal fleet provides a unique and important opportunity, as one of the largest fleets in the country, to help prioritize the market and encourage transportation electrification to happen much more quickly,” said Electrification Coalition Executive Director Ben Prochazka in a briefing Wednesday, according to SmartCitiesDive.

Last February, U.S. Postmaster General Louis DeJoy announced that the Postal Service was committed to having electric vehicles make up 10% of its next-generation fleet, reported Reuters. DeJoy also revealed a contract with Oshkosh Defense had been signed that could be worth up to $6 billion in total and that would see the delivery of between 50,000 and 165,000 vehicles which will be a mix of internal combustion-powered and battery-electric vehicles. The vehicles would be delivered over a period of ten years.

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The previous month, President Joe Biden also said he would replace the U.S. government’s fleet of roughly 650,000 vehicles with electric versions. He further signed an executive order that directed federal agencies to “procure carbon pollution-free electricity and clean, zero-emission vehicles."

When it comes to vehicles for the U.S. federal government, the future is green indeed!

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