In the 2023 budget year, U.S. government agencies are facing significant challenges in their ambitious bid to purchase 9,500 electric vehicles (EVs), according to a report from the Government Accountability Office (GAO).
The report revealed that the 26 agencies with approved EV acquisition plans have estimated a budget of over $470 million for vehicle purchases, along with an additional nearly $300 million for infrastructure design, installation, and other related expenses. This amounts to nearly $200 million more than the cost of purchasing equivalent gasoline-powered vehicles.
Notably, this proposed acquisition marks a significant increase, nearly tripling the number of EVs acquired compared to the prior budget year. However, the surge in demand has led to supply issues and higher costs, making it difficult for agencies to meet their ambitious targets.
The report indicates that a major obstacle hindering the agencies from buying as many EVs as desired is the uncertainty surrounding the ability of electric vehicles to meet their specific needs. For instance, the Transportation Department initially intended to order 430 zero-emission vehicles (ZEVs) for 2022. However, due to order cancellations from manufacturers, the order was scaled back to only 292 vehicles.
Customs and Border Protection (CBP) officials expressed doubts about the suitability of EVs for their law enforcement missions, particularly in extreme environments like the borders. This highlights concerns about EV performance and adaptability in certain scenarios, potentially impacting the extent to which these agencies can transition to electric transportation.
The White House has been a vocal advocate of electrification efforts, with President Joe Biden issuing an executive order in December 2021, aiming to eliminate purchases of gas-powered vehicles by 2035. The order also outlines a directive for 100 percent of light-duty federal acquisitions to be electric or plug-in hybrid vehicles (PHEV) by 2027. This policy encompasses approximately 380,000 federal vehicles, with agencies typically purchasing around 45,000 vehicles annually. However, the U.S. Postal Service (USPS) remains exempt from this requirement, Reuters news report said.
While federal agencies have made commendable progress in adopting electric vehicles, the report highlights the challenges in achieving the ambitious targets set by the executive order. In the 12-month period ending on September 30, 2022, EV and PHEV purchases saw a substantial increase, rising from 1 percent of vehicle acquisitions in 2021 to 12 percent in 2022, totaling 3,567 vehicles.
Additionally, the USPS, which operates independently from other federal agencies, announced a delay in receiving its next-generation delivery vehicles. These vehicles are now expected in June 2024, a nine-month delay from the initial schedule.
As the U.S. government continues its push towards a greener and more sustainable future, addressing the supply issues and cost challenges associated with electric vehicle adoption will be critical for achieving President Biden’s ambitious electrification targets.