why haven't propane forklift trucks been banned in california

1. The Legal Gridlock: The EPA and the 2025 Settlement

The most immediate reason propane forklifts remain legal in California is a significant legal pivot that occurred in mid-2025. The California Air Resources Board (CARB) had originally moved to implement the Zero-Emission Forklift (ZEF) Regulation, which would have prohibited the sale of most new Large Spark-Ignition (LSI) forklifts starting January 1, 2026.

However, in May 2025, CARB reached a landmark settlement with the Western Propane Gas Association (WPGA). The WPGA had sued the state, arguing that the regulation was economically infeasible and legally premature. Under the terms of this settlement:

Enforcement Stay: CARB agreed not to enforce the ZEF regulation against private fleets until it receives a formal waiver from the U.S. Environmental Protection Agency (EPA).

Federal Oversight: Under the Clean Air Act, California requires federal permission to enforce standards that are more stringent than national requirements. As of early 2026, this waiver has not been granted, effectively placing the "ban" in a state of indefinite suspension.

Reporting Requirements: Even the mandatory reporting and "low-use" tracking requirements have been largely paused for private businesses, providing a temporary reprieve for the propane industry.

2. The Infrastructure Paradox: Powering the Transition

Even if the legal hurdles were cleared tomorrow, the physical reality of California’s power grid remains a massive barrier to a total propane ban. A 2024 economic impact report estimated that upgrading warehouse infrastructure to support 100% electric fleets would cost California businesses over $6.3 billion in charging station installations alone.

The "Grid-to-Fork" Challenge

Many older industrial zones in the Inland Empire and the Central Valley do not have the electrical capacity to support dozens of fast-charging lithium-ion forklifts. For a warehouse to switch from propane (where "refueling" takes 60 seconds by swapping a tank) to electric, they often require:

New Transformers: Upgrading the local utility connection to handle high-amperage draws.

Sophisticated Power Management: Systems to prevent "peak demand" charges that can triple a facility's electricity bill.

Real Estate Loss: Electric charging "bays" require dedicated floor space, whereas propane tanks are stored in small outdoor racks.

In 2026, the "Infrastructure Site Electrification Delay" extension exists because CARB acknowledges that utility companies (like PG&E and SCE) often have backlogs of 12 to 24 months for high-power industrial upgrades.

3. Technical Necessity: Propane’s Performance Advantage

The logistics industry has not moved away from propane because, in specific high-intensity applications, electric technology is still playing catch-up. Propane forklifts offer several technical "moats" that make them difficult to replace:

Continuous Operation: In 24/7 "triple-shift" operations, a propane forklift has zero downtime. An operator simply swaps a $33$ lb cylinder. Even with "opportunity charging," electric forklifts often require mid-shift breaks or a larger, more expensive fleet to ensure one machine is always charged.

Power and Torque Consistency: Propane engines provide 100% of their rated torque until the tank is empty. Older lead-acid electric models—and even some mid-tier lithium models—can experience "voltage sag" as the battery depletes, reducing lifting speeds and travel performance.

Outdoor and Cold Storage Durability: Propane-powered Class V pneumatic-tire forklifts are the standard for outdoor lumber yards and construction sites. Battery performance typically degrades in the extreme heat of a California summer or the sub-zero temperatures of a cold-storage food facility.

4. Economic Protection for Small Businesses

California’s regulatory framework has historically tried to avoid "stranding assets"—forcing a business to scrap a perfectly functional machine that they have already paid for. The proposed (but currently unenforced) ZEF rule included a "13-year useful life" provision.

Under this philosophy, a forklift purchased in 2023 would theoretically be allowed to operate until 2036. The state recognizes that for a "micro-business" (defined as having fewer than 25 employees and less than $5 million in gross receipts), the $50,000 to $70,000 cost of a new electric forklift plus charging infrastructure could be a terminal expense.

5. The "Low-Use" and "Dedicated Emergency" Exemptions

The reason you still see propane forklifts at your local hardware store or small manufacturing plant is the Low-Use Exemption. Current guidelines (which remained part of the discussion even after the settlement) allow forklifts used fewer than 200 hours per year to remain in operation.

Additionally, "Dedicated Emergency Forklifts"—those used for disaster relief or critical infrastructure repair—are exempt from phase-out requirements. Propane is the preferred fuel for emergency resiliency because it does not rely on a functioning power grid and the fuel can be stored indefinitely in tanks without degrading like gasoline or losing charge like a battery.

The Path Forward: Phase-Out vs. Ban

It is important to distinguish between a ban and a phase-out. California has never proposed an overnight "ban" on the possession of propane forklifts. Instead, the strategy is a gradual constriction of the market:

Sales Restriction: Stopping the sale of new IC units (currently on hold).

Fleet Turnover: Requiring large fleets (26+ units) to retire their oldest machines first.

Incentivization: Using the Low Carbon Fuel Standard (LCFS) to pay companies for the carbon they don't emit when they switch to electric.

Conclusion

Propane forklifts haven't been banned in California because the transition to zero-emissions is a feat of engineering and economics that cannot be solved by a simple signature on a bill. Between the 2025 WPGA settlement, the lack of an EPA waiver, and the massive electrical infrastructure deficit, the propane engine remains the "indispensable workhorse" of the California supply chain.

While the "Zero-Emission Forklift" remains the ultimate goal for 2035, the blue propane tank is likely to remain a fixture of the California warehouse for at least another decade.