New Mexico Environment Department gives UPS funding to replace 16 delivery trucks

(The Center Square) - The New Mexico Environment Department is giving the United Parcel Service $473,222 in taxpayer funds to replace 16 delivery vehicles with low-pollution compressed natural gas delivery vehicles.

“New Mexico has helped school districts and nonprofit organizations reduce their climate-warming emissions from their vehicle fleets,” Environment Secretary James Kenney said in a statement. “Now, UPS is following suit by retiring diesel-fueled vehicles and replacing them with cleaner vehicles.”

Over these vehicles' lifetimes, oxides of nitrogen (NOX) will be reduced by nine tons, and fine particulate matter (PM2.5) will be reduced by over half a ton, the release said. That's a cost of $3,113 per ton of emissions reduced; for reference, reducing NOX emissions can cost less than $2,000 per ton according to the EPA.

"NOX contributes to the formation of ground-level ozone, and both ozone and PM2.5 contribute to the formation of smog," the release said.

United Parcel Service – diesel delivery vehicles that UPS is replacing currently serve Albuquerque, Santa Fe, Carlsbad, Silver City, Clovis, Hobbs, and Farmington. However, its replacement vehicles will be relocated to Albuquerque.

The funding from NMED will only cover part of the $1.44 million necessary to replace these trucks.

“At UPS, we believe in contributing positively to the communities in which we live and work. With over 18,000 alternative fuel and advanced technology vehicles in our fleet, we are proud to collaborate with the New Mexico Environment Department to increase our number of renewable natural gas vehicles and make a difference on the road,” Ryan Bankerd, UPS Corporate Affairs Director of Sustainability, said. “This type of work helps drive our company’s advancement of lower-carbon solutions, reduce emissions, and deliver real change.”

UPS generated $91 billion in revenue in 2023 and serves over 200 countries and territories, the release said. It employs about 500,000 people globally.

"UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world," the release said. "UPS also takes an unwavering stance in support of diversity, equity, and inclusion."

Congress passed the Diesel Emissions Reduction Act (DERA) in 2005 as an amendment to the Energy Policy Act.

"DERA was designed to reduce diesel emissions from existing diesel fleets that did not meet the federal emission standards at that time," the release said.

The EPA provided NMED grant funding for its New Mexico Clean Diesel Program to reduce heavy-duty diesel emissions.

The Air Quality Bureau under NMED manages the program and has provided over $2.3 million in grant funding for qualifying diesel emissions reduction projects since 2008, according to the release.