Good news for California businesses and end users – you can keep selling & using non-electric forklifts!
This stems from a recent settlement between the Western Propane Gas Association (WPGA) and the California Air Resources Board (CARB). In the settlement, CARB agreed not to enforce their upcoming Zero-Emission Forklift regulation within California.
What does this mean for equipment dealers? How does it affect business in states following CARB’s standards (not just California, but Oregon, Colorado, etc.)? We put this post together to explain it all.
Starting Point – CARB Decides California Must Electrify By 2026
In 2024, CARB instituted a new rule for California businesses. The rule mandated that all businesses could only use Zero-Emission Forklifts within the state. In other words, only electric forklifts. They proclaimed this as a step forward in environmental safety.
The “ZEF Rule” also applied to equipment dealers operating in California. They could no longer sell new non-electric forklifts within the state after 2026, and used non-electrics after 2027. It applied to all LPG and dual-fuel forklifts, regardless of model or brand.
Naturally, this pushes a potentially enormous cost onto California businesses & dealers. CARB estimated it going up to $27 billion total.
In response, the WPGA filed suit against CARB, citing serious economic impacts, and questioning the ability to even enforce such a regulation.
2025 Settlement Result – ZEF Regulation Unenforceable, CARB Won’t Prevent Dealers from Selling Non-Electrics
As of May 2025, WPGA and CARB reached a settlement.
Thanks to the settlement, California dealers can continue to sell LPG & dual-fuel material handling equipment. California businesses can continue to use their non-electric forklifts as well.
For the time being, CARB will not enforce the ZEF rule. It won’t prevent manufacturers, dealers, or rental agencies from offering non-electric forklifts for sale & rental.
(It will continue to encourage adoption of electric forklifts in California for environmental reasons, however.)
Now, nothing’s wrong with electric forklifts. They’re just as performant as LPG forklifts – even more so in some ranges – and far cheaper to operate over time. We still encourage all dealers and customers to consider Heli electrics. They’re an affordable way to introduce electric forklifts to customers old and new.
What Western States Dealers Should Do Now
While the settlement is good news, dealers still have uncertainty. The market’s still dealing with the tariff situation and international shipping questions.
The ZEF regulation change may ease that uncertainty, letting California businesses relax their go-electric plans, saving a lot of high potential costs.
We expect a rise in forklift demand into the second half of 2025 and the beginning of 2026. Both in LPG forklifts and electric forklifts (some businesses may opt to go ahead with all-electric plans anyway).
Dealers can plan for this by communicating with forklift manufacturers & distributors, to project demand and begin purchase orders.
California Forklift Dealers: No ZEF Rule for 2026, Let’s Get to Selling!
Could the Zero-Emission Forklift regulation come back in the future? It’s possible, though not likely for a few years. Right now, the best thing to do is get to work doing what we all do best – helping businesses across the Western States do their jobs.
Whether you prefer to sell LPG or Electric, Industrial Forklifts is prepared and happy to help dealers in all CARB-adhering states with the future.
Wondering what you should do next? Talk with our team! Here’s our Contact page, or you can message us on LinkedIn.
Additional Sources:
Zero-Emission Forklifts – California Air Resource Board
2024 CARB Cost Analysis (PDF Format) – WesternPGA.org
Zero-Emission Forklift Regulation Implementation Update – May 29, 2025 – ARB.CA.Gov