California is leading a sweeping change in industrial fleet operations with the rollout of the zero emission forklift mandate enforced by the California Air Resources Board (CARB). Beginning January 1, 2026, businesses across warehousing, distribution, and manufacturing will be required to phase out most internal combustion (IC) forklifts in favor of electric or zero-emission alternatives.
This regulation—officially titled the Zero Emission Forklift (ZEF) Regulation—marks a major shift in how material-handling equipment is managed, financed, and deployed. For fleet managers, logistics leaders, and environmental compliance professionals, understanding and planning for the zero emission forklift mandate is no longer optional—it’s essential for operational continuity and long-term success.
In this guide, Fleet Team outlines exactly how to navigate this transition. From understanding phase-out timelines to upgrading infrastructure and securing grant funding, we’ll walk you through a clear, step-by-step plan to achieve compliance and future-proof your forklift fleet.
What Is the Zero Emission Forklift Mandate?
Passed in June 2024 and taking effect on January 1, 2026, CARB’s zero-emission forklift mandate requires companies operating in California to transition away from LSI-powered (Large Spark Ignition) forklifts—primarily Class IV and Class V units under 12,000 lbs.—and begin adopting electric or other zero-emission equipment. This applies to nearly all propane, gasoline, or natural gas-powered forklifts.
The mandate prohibits the addition of new IC forklifts to fleets and sets specific retirement deadlines for existing units based on engine year, not just equipment delivery date. It also introduces new reporting requirements and infrastructure readiness documentation that companies must submit annually.
Certain forklifts are exempt from the regulation, including rough-terrain models, pallet jacks, and units used exclusively for military, emergency response, or agricultural operations.
Why Compliance Should Be a Top Priority
Ignoring the zero emission forklift mandate can expose your business to significant risk. Regulatory penalties, disqualification from permits, and operational disruption are just a few of the consequences. In addition to compliance concerns, companies risk stranded investments in non-compliant equipment that may soon become ineligible for use, sale, or lease.
On the upside, compliance presents an opportunity to modernize your fleet, reduce energy and maintenance costs, and align with broader ESG goals. With rising customer expectations and increasing regulatory pressure, a proactive response to the zero emission forklift mandate demonstrates operational leadership.
Step-by-Step Roadmap to CARB Compliance
1. Audit Your Fleet and Site Readiness
The first step is conducting a full audit of your forklift fleet. You’ll need to catalog each unit’s make, model, serial number, engine year, lift capacity, and power source. This information determines which forklifts fall under the zero-emission forklift mandate and when they must be removed from service.
Alongside your fleet inventory, assess your facility’s electrical infrastructure. Many businesses will need to install or upgrade charging stations, electrical panels, and transformers to support electric forklifts. CARB requires you to contact your utility provider by March 1, 2026, and submit documentation outlining your electrification plans by April 30, 2026.
Fleet Team provides on-site fleet assessments and electrical readiness evaluations to simplify this foundational step.
2. Understand Phase-Out Schedules and Compliance Deadlines
CARB’s phase-out schedule varies based on forklift class, engine year, and fleet size. For example, large fleets must retire 2018 model year Class IV units by 2028 and complete a full phase-out by 2035, while small fleets (25 units or fewer) have until 2038.
Class V forklifts follow a similar pattern but extend phase-out timelines for newer model years. Rental agencies and dealers face separate restrictions on what they can sell, lease, or offer for rent, beginning as early as 2026.
Fleet Team can help you build a compliance timeline that maps your current assets against phase-out deadlines, helping you prioritize replacements and avoid late-stage surprises.
3. Plan for Infrastructure Upgrades
Electric fleets require adequate charging capabilities. Depending on your facility’s existing capacity, you may need to work with your utility provider to expand service, install charging stations, or add battery management systems.
CARB offers infrastructure delay extensions, but they require evidence of early planning. Fleet Team can serve as your liaison with utilities and help manage infrastructure projects from permitting through installation.
4. Evaluate Costs and Apply for Incentives
Replacing IC forklifts comes with an upfront cost, but the long-term savings on fuel and maintenance often balance the investment. Electric models reduce operational downtime, eliminate emissions, and improve indoor air quality.
California offers numerous grant programs under the Zero-Emission Forklift Replacement Program, many of which cover up to 100% of replacement costs. These programs are not rebates—approval must be obtained before purchasing equipment. Fleet Team helps clients identify eligible grants, complete applications, and avoid costly missteps.
5. Train Your Operators and Support Staff
Workforce readiness is critical. Operators must be trained on electric forklift operation, charging protocols, and new safety procedures. Maintenance staff may also require new certifications depending on the battery technology deployed.
Fleet Team supports change management by coordinating training and implementation programs designed to increase safety, reduce errors, and improve user adoption.
6. Track Progress and Build a Long-Term Strategy
Once your transition is underway, staying on top of reporting and compliance is essential. Businesses must submit annual fleet reports to CARB by September 30, track upgrades by facility, and properly label each regulated forklift with a CARB-issued EIN number.
Our Fleet Insights Dashboard simplifies this process by tracking unit-level compliance, upcoming phase-out dates, infrastructure milestones, and extension eligibility in real time.
With Fleet Team’s strategic planning and lifecycle support, you can maintain compliance while optimizing cost, efficiency, and uptime across all brands and models in your fleet.
Common Exemptions to Know
Some forklifts may be exempt from the zero emission forklift mandate, but only under strict usage and reporting conditions. These include low-use forklifts (under 200 hours per year), emergency-use equipment, and forklifts in temporary storage awaiting resale or out-of-state relocation.
CARB also offers extensions in cases of infrastructure delays, electric forklift delivery issues, or lack of commercially available alternatives. Fleet Team helps manage the documentation process to ensure your exemptions or extensions are valid and approved.
Compliance Is a Mandate—But Also an Opportunity
The zero emission forklift mandate may feel like a major regulatory burden, but it also offers a clear path toward cleaner, more efficient operations. Companies that move early will benefit from available incentives, greater equipment availability, and streamlined implementation. Those who delay may find themselves scrambling to meet deadlines or facing equipment shortages and regulatory penalties.
Fleet Team is here to support your journey every step of the way. Our brand-agnostic approach, deep regulatory knowledge, and turnkey fleet services ensure that you’re not only compliant—but also operating smarter and more sustainably than ever.
Learn more about CARB compliance and how a fleet management company like Fleet Team can help you navigate it – Contact Us.
