Residential heat pump water heater or heat pump HVAC systems

The law reduces local permitting barriers, caps many permit fees, and limits HOA restrictions on heat-pump water heaters and HVAC systems. It does not apply to new residential construction.

What the law does ​

• Requires cities and counties to offer asynchronous heat-pump inspections beginning July 1, 2027, when an in-person contractor inspection is unnecessary.
• Requires most larger local jurisdictions to offer real-time online permits for qualifying replacement installations by July 1, 2028.
• Limits most local permit fees to $150 for heat-pump water heaters and $200 for heat-pump HVAC systems, unless a locality substantiates higher reasonable costs.
• Bars permits and inspections for qualifying self-contained, 120-volt-or-less plug-in window air conditioners and window heat pumps.
• Voids deed and HOA restrictions that effectively bar residential heat pumps or replacing fuel-gas appliances with code-compliant electric appliances.
• Requires local governments seeking Energy Commission funding to self-certify compliance with applicable requirements.

Who it affects ​

• Homeowners and residents in common-interest developments seeking to install, replace, or use residential heat-pump systems.
• Homeowners associations, which generally cannot charge fees, dictate contractors or products, claim installation incentives, or require removal of a member’s heat-pump system.
• Licensed contractors installing qualifying residential heat-pump water heaters and HVAC systems.
• Cities and counties that permit and inspect residential heat-pump installations.

Breakdown ​

Residential Heat Pump Installation Rules ​

SB 222 sets statewide rules to make permitting and inspection of residential heat pump water heaters and heat pump HVAC systems faster and more consistent. Starting in 2027 and 2028, local governments must offer certain remote inspections, publish required information online, and create real-time automated permitting for qualifying licensed contractors. The bill also limits local permit, inspection, zoning, labor-standard, and fee requirements in specified ways.

Key takeaways

• Beginning July 1, 2027, cities and counties must offer asynchronous inspections when an installation does not require the contractor and building inspector to be present at the same time.
• By July 1, 2028, cities and counties must provide an online automated permitting process that issues permits in real time to qualifying licensed contractors.
• A contractor using the automated process must certify under penalty of perjury that the new equipment was properly sized using a load calculation.
• Local governments may generally require no more than one nondiscretionary permit for each qualifying heat pump water heater or heat pump HVAC installation.
• Local governments may impose only specified additional planning, zoning, or workforce labor standards beyond state requirements for these installations.
• Local governments generally cannot require a permit or inspection for qualifying self-contained, plug-in window air-conditioner or window heat pump systems rated at 120 volts or less, and the bill limits permit fees for covered systems.
• A local government seeking Energy Commission funding must self-certify that it complies with the applicable requirements, and the new rules do not apply to new residential construction.

Homeowner Heat Pump Rights ​

SB 222 prevents common interest development rules from blocking residents from replacing gas appliances with electric ones. It also invalidates certain restrictions on residential heat pump water heaters and heat pump heating and air-conditioning systems, and limits when associations may restrict their installation, upgrade, replacement, or use in an owner's separate property.

Key takeaways

• Rules in governing documents, architectural guidelines, or policies cannot prevent a fuel-gas-burning appliance from being replaced with an electric appliance.
• Certain covenants, deed restrictions, agreements, and governing-document provisions that effectively prohibit or restrict residential heat pump water heaters or heat pump HVAC systems are void and unenforceable.
• An association generally may not prohibit or restrict a member from installing, upgrading, replacing, or using a residential heat pump water heater or heat pump HVAC system in the member's separate interest.
• The association restriction is subject to specified exceptions in the bill.

Statewide Application ​

The bill states that its changes address a statewide concern, not solely local municipal matters. As a result, the bill applies in every California city, including charter cities.

Key takeaways

• The bill declares that its proposed changes involve a matter of statewide concern.
• The bill states that the changes are not limited to municipal affairs.
• The bill applies to all California cities, including charter cities.

State Reimbursement for Mandates ​

The bill says no state reimbursement is required for certain state-mandated local costs, for the reason specified in the bill. If the Commission on State Mandates finds that the bill creates other reimbursable mandated costs, the state must reimburse those costs under existing procedures.

Key takeaways

• The bill excludes certain mandates from state reimbursement for a reason identified in the bill.
• The bill does not eliminate reimbursement for every possible mandated cost.
• If the Commission on State Mandates finds other state-mandated costs, those costs must be reimbursed under existing state procedures.