US Gov’t Agencies to Buy 9.5K EVs in 2023: A Focus on Sustainability

In the 2023 budget year, U.S. government agencies aim to purchase 9,500 electric vehicles (EVs), a federal report revealed. However, they face challenges with supply shortages and higher costs compared to gasoline-powered options.

This number is nearly triple the amount of EVs acquired in the previous budget year.

According to the Government Accountability Office, 26 agencies with approved EV acquisition plans estimate a required budget of over $470 million for vehicle purchases. They also anticipate an additional $300 million for infrastructure design, installation, and related expenses. The cost of acquiring these vehicles exceeds the price of comparable gasoline-powered vehicles by almost $200 million. These agencies represent over 99% of the federal vehicle fleet, excluding the U.S. Postal Service (USPS) which operates independently.

The White House has not yet provided a comment on this matter.

Agencies encounter obstacles in purchasing as many EVs as desired, due to uncertainties regarding whether EVs can fulfill all their requirements. The Transportation Department informed the GAO that their initial order for 2022 included 430 zero-emission vehicles (ZEVs). Unfortunately, this number had to be reduced to 292 due to cancellations from manufacturers.

Customs and Border Protection (CBP) officials expressed doubt to the GAO, stating that EVs may not be suitable for law enforcement activities or extreme border environments.

In December 2021, President Joe Biden issued an executive order mandating the government to cease purchasing gas-powered vehicles by 2035. The order also specifies that 100% of all light-duty federal acquisitions by 2027 should be either electric or plug-in hybrid vehicles (PHEVs).

This directive covers approximately 380,000 federal vehicles, and federal agencies typically acquire around 45,000 vehicles annually, excluding the USPS.

In the 12-month period ending on September 30, 2022, federal agencies significantly increased their purchases of EVs and PHEVs, with these options accounting for 12% of the total light-duty acquisitions. This marks a drastic rise from 1% in 2021 and amounts to a total of 3,567 environmentally-friendly vehicles.

The USPS previously announced a delay in receiving their next-generation delivery vehicles, pushing the expected arrival date to June 2024, postponing it by nine months.

Reporting by David Shepardson; Editing by Leslie Adler and Diane Craft.