USPS Electric Truck Bill

As covered on this edmunds.com post, The American Electric Vehicle Manufacturing Act, H.R. 4399, was introduced to congress last month.  Touted as a way to both make the USPS fleet more efficient and also as a way to move toward economies of scale for electric vehicle technology and production, the bill is an interesting move that only the government can force.

I like businesses.  I particularly like start-ups and their ability to re-invent the way business operates.  I think that is important when we begin to consider companies based on their 360-degree impact on our lives (that is, not just the benefits of the products and services they create, but also the potential consequences they produce).  The auto-maker Tesla comes to mind as a startup that is pushing electric vehicles into the mainstream with new energy and vision.

However, unlike well-run businesses, the federal government has a chance to make decisions that are short-term losses (well, maybe even a long-term losses) and not worry about quarterly reporting and firm-level ROI.  If they take a loss to change the cost, technology, demand or resource efficiency of the transportation industry – or even other industries – it can still be a success for the country and economy.  Whereas, if a private sector shipping company loses billions of dollars buying electric vehicles as an early adopter, it is held accountable while its rivals benefit from the advances in the market.  FedEx, UPS, Coca-Cola Enterprises and every other company that delivers products or goods can benefit from the USPS expenditure.

I am not saying that this is how it will work out.  There are challenges and no bill or initiative is perfect.  But it is how it could work out with the proper planning, execution and support.  To get more efficient government and corporate fleets, improved electric infrastructure and lower-cost, more efficient consumer transportation, it seems worth the cost and effort.