California’s proposed ban on propane and gas forklifts faced significant revisions following a legal settlement between the California Air Resources Board (CARB) and industry stakeholders in May 2025. Originally passed in June 2024, the Zero-Emission Forklift (ZEF) regulations aimed to phase out large spark-ignition (LSI) engines – including propane-powered units – in new forklifts by 2026, with complete operational retirement mandated by 2038. However, the settlement suspended enforcement for privately owned fleets pending federal authorization, preserving operational continuity for over 89,000 existing LSI forklifts while maintaining commercial sales restrictions.
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What triggered the regulatory suspension?
The settlement emerged from infrastructure readiness concerns and economic feasibility challenges. WPGA successfully argued that CARB underestimated charging infrastructure requirements and grid capacity limitations for widespread electric forklift adoption. With California consuming 535 million gallons of propane in 2023 (national leader), abrupt electrification would disrupt supply chains for 40% of warehouses still using LSI equipment.
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The suspension recognizes transitional complexities in heavy-duty applications like cold storage and construction sites, where propane’s instant power and cold-weather performance remain unmatched. A 2022 PERC lifecycle analysis showed propane units outperforming electric models in 22 states when considering battery production emissions and grid energy sources. Pro Tip: Operators maintaining propane fleets should document maintenance records – future regulations may grandfather well-maintained units.
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How does this affect existing forklift fleets?
Current propane fleets operate under grandfather provisions with mandatory emissions reporting. CARB requires quarterly PM2.5 monitoring for operations exceeding 200 annual hours, using approved telematics devices. The table below contrasts operational requirements:
| Parameter | Pre-Settlement | Post-Settlement |
|---|---|---|
| New Purchases | Full ban 2026 | Commercial ban remains |
| Retrofits | Mandatory 2032 | Voluntary upgrades |
| Reporting | Annual certification | Real-time telematics |
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FAQs
Engine swaps remain prohibited, but CARB-certified aftertreatment systems (≥$8,500/unit) can reduce NOx by 75%. Cost-benefit analysis typically favors gradual electrification.
Do electric forklifts handle heavy payloads equivalently?
Modern 96V lithium systems match 15,000 lb propane capacities, but require 450A charging stations – a significant infrastructure investment compared to propane fueling stations.
