California passes first-of-its-kind heat pump permitting bill

California lawmakers are pursuing a novel approach to incentivize heat pump and heat pump water heater installs across the state by targeting the permitting process. 

What’s happening: Senate Bill 222, written by state Sen. Scott Wiener, was passed by California’s legislature on Tuesday — a move in line with a state goal of installing six million heat pumps by 2030.

• The bill mandates cities and counties to launch online permitting portals for heat pump installations, removes some permitting fees, voids HOA restrictions that ban or limit replacing a gas appliance with an electric one, and slashes local permit and inspection requirements for wall and window AC units.
• It also requires contractors to certify that they’ve performed load calculations using ACCA’s Manual J standard for residential heat pump installations. 

The big picture: While other states have incentivized electrification efforts through rebates, California’s legislation marks the first approved bill in the U.S. aimed at the permitting process from the state level.

• Following the wind-down of federal HVAC energy efficiency tax credits in the second Trump administration, more states are taking aggressive local approaches to shift away from gas appliances.

Between the lines: The legislation works in tandem with San Francisco’s Bay Area Air District proposal, which sets a zero-NOx standard for new residential water heaters and furnaces beginning in 2027 and 2029, respectively, as Homepros has reported.

What they’re saying: “Speeding up low-cost installations for heat pumps is how we protect California families from extreme heat and rising energy costs,” Senator Wiener said in a Tuesday statement. 

• “Californians and the contractors who serve them deserve a simpler, faster, more predictable and affordable process for installing heat pumps,” added Madison Vander Klay, government affairs manager at the Building Decarbonization Coalition, which co-sponsored the bill.

Yes, but: Several municipal and county associations have opposed the bill, saying it creates an unfunded mandate in developing costly online portals and that permitting is not a barrier to heat pump access in the state.

• “Establishing a state-dictated permitting framework for HVAC systems sets a troubling precedent for future preemption of local building, zoning, and land-use authority,” Rural County Representatives of California wrote in a July press release.

Looking ahead: The bill cleared the state Senate in a 26-5 vote, and Gov. Gavin Newsom has until September 30 to act.