How California Businesses Can Make Money Owning Electric Forklifts

California State Programs Give You Money For Electric Forklifts

If you’ve thought about purchasing electric forklifts in the past but held off due to higher upfront costs, now might be time to reconsider. Although the initial acquisition cost of electric forklifts with batteries and chargers may be higher than Internal Combustion (IC) forklifts of similar specifications, the operating costs of electrics are significantly lower. In their lifetime, electric forklifts can save you money on fuel, maintenance costs, and downtime, making the true cost of electric forklifts significantly lower than IC forklifts. 

In addition to getting money for owing electric equipment, there are many other advantages to adding electric forklifts to your fleet, too. For example, electric forklifts are quieter than other forklifts, generally smaller than LPG or diesel-powered models, and omit zero harmful emissions into the environment.  

If your business is located in California, the advantages of purchasing new electric equipment are even greater when you take advantage of two state programs designed to make the purchase of electric forklifts more affordable.  

First, to help with the purchase of new electric equipment, California businesses can apply for grants to replace certain internal combustion (IC) forklifts, ground support equipment (GSE), and port cargo handling equipment (CHE) with new models with zero-emission technologies. Next, once your new electric equipment is in use, California businesses can make money by generating Low Carbon Fuel Standard (LCFS) credits and selling those credits to companies that generate deficits in the program. 

California’s VW Mitigation Trust

The California VW Mitigation Trust grants money to public agencies and private businesses to replace IC forklifts and other equipment with new models with zero-emission technologies. Up to $34 million is available to eligible projects statewide now, and an additional $35 million will be available by mid-2022.  

Companies must scrap IC forklifts with more than 8,000 pounds of lifting capacity, GSE, and CHE to qualify for the program and replace them with new equipment with zero-emission technologies. 

The key project requirements include:  

  • For replacement and repower projects, the old equipment must be scrapped (destroyed). 
  • Funded equipment must be certified, verified, or otherwise approved by the U.S. EPA or CARB for operation in California. 
  • Funded equipment must be domiciled in and operate in the State of California for the duration of its project life. 
  • Funding recipients must report annually on operations for at least three years. 

California’s VW Mitigation Trust is a great program to help California companies lower the cost of adding environmentally-friendly equipment to their fleets. But we urge you to act fast! The grants available from California’s VW Mitigation Trust are on a first-come-first-serve basis.  

Click here to read the program guidelines or click here to begin the application process. 

California’s Low Carbon Fuel Standard Program

In 2016, The California Air Resources Board (CARB) designated electricity used in forklifts as a low carbon fuel. Since then, electricity used in forklifts can generate credits in the Low Carbon Fuel Standard (LCFS) program.  

If you are unfamiliar with the program, it is a simple concept. A LCFS credit is an environmental commodity representing a reduction in greenhouse gas emissions. Each credit has value to regulated entities that generate deficits in the program. For example, forklifts that use electricity can generate credits. Refiners, or other regulated entities, buy these credits to offset the deficits they create in the program. 

We partner with a company that helps businesses make money from California’s LCFS credits. They take the hassle out of the process, and you receive a quarterly check for your credits. Best of all, the average warehousing facility can generate tens of thousands of dollars of revenue from LCFS credits annually. 

Remember, California aims to achieve 100% zero emissions for off-road vehicles and equipment operations in the state by 2035. Start the process now, and you’ll be ahead of the game – while saving money and making money in the process!  

Our material handling experts are standing by to help secure your new zero-emissions forklifts and other electric equipment. Contact us to schedule a consultation today.