WPGA and CARB settle suit over forklift regulation, declare rule and reporting requirements unenforceable

The Western Propane Gas Association (WPGA) and California Air Resources Board (CARB) have agreed to settlement terms in the case WPGA v. CARB in Fresno County Superior Court over the implementation of the Zero-Emission Forklift (ZEF) rulemaking. The rule would have banned the sale of all new propane-powered forklifts beginning as soon as 2026. The publishing of an advisory update on the rule on CARB’s website was the final step in negotiations between the two parties on the resolution of the suit.

WPGA had initially filed suit in August 2024 in response to the approval of the ZEF rule over its failings with regards to unintended environmental impacts and violations of the Administrative Procedures Act. The suit followed years of work by WPGA and coalition partners to alert CARB staff and board members consequences of the rule, including significant economic impacts, and of numerous individuals, businesses, labor organizations, and community groups who were opposed to the rule as drafted.

“I want to thank CARB for their willingness to come to the table and find an equitable solution that would work for all parties,” said Colin Sueyres, President & CEO of WPGA. “WPGA and its coalition partners recognized early on that implementing this rule would prove costly at best, or completely infeasible at worst. By publicly declaring that the rule cannot be enforced and giving private businesses across California and the globe certainty, we can all work together to find workable solutions to improve our climate and air quality. I look forward to continuing our industry’s important dialog with CARB staff and its leadership.”

The terms of the settlement include the following provisions that CARB will uphold, with WPGA dismissing its suit (with leave to refile if the terms are not met), for the duration of the current federal administration:

CARB will not enforce the ZEF Regulation (including reporting requirements) against any privately-owned or operated fleets, or privately-owned or operated fleets working on public sites, before CARB receives federal authorization.

CARB will not enforce the ZEF Regulation for acts or omissions by any party that occur prior to authorization and will not require reporting pursuant to the ZEF Regulation until the first reporting deadline after a potential future date the U.S. EPA publishes its decision to grant authorization.

CARB will not prohibit manufacturers, dealers, or rental agencies from producing, offering, selling, or renting LSI forklifts in California if the forklifts meet all other federal, state, and CARB regulations outside of the ZEF Regulation.

If CARB chooses to seek authorization from USEPA for the ZEF Regulation, prior to doing so, CARB will consider adjusting the deadlines to follow from the date of receiving authorization to ensure that fleet operators are not unfairly deprived of the useful life of LSI Forklifts of Model Year 2025 or later.

In addition to those conditions, WPGA and CARB have agreed to continue working together on any future forklift rulemakings to protect consumers and stakeholders who would be affected by the rule. This includes CARB naming a Deputy Executive Officer to act as a liaison to forklift industry stakeholders, and WPGA and CARB working together on at least three public workshops for any future regulation that would consider reasonable alternatives and mitigation measures, as well as the potential for adverse economic impact or imposition of unnecessary or unreasonable regulations on businesses and individuals manufacturing, selling, leasing, operating, or fueling impacted forklifts.