Senate BillChaptered/SignedCivil
SB 222: Residential heat pump water heater or heat pump HVAC systems.
What SB 222 does, verified September 30, 2026
The bill aims to promote the adoption of residential heat pump water heater and heat pump HVAC systems by providing incentives and streamlined permitting processes. Cities, counties, and city-counties will be required to adopt and offer asynchronous inspections for installations of these systems, starting July 1, 2027. These systems will not require a licensed contractor and building inspector to be simultaneously present during inspections. Cities, counties, and city-counties will be authorized to issue up to one nondiscretionary permit per installation, starting July 1, 2028, and can apply additional planning or zoning standards to encourage the adoption of zero-emission equipment or improved building efficiency. Plug-in ready window air-conditioner or window heat pump HVAC systems will be exempt from permit and inspection requirements, provided certain requirements are met. A local e…
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Last action: Chaptered by Secretary of State. Chapter 738, Statutes of 2026. (2026-09-28)Alert me
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| Sep. 28, 2026 | Chaptered by Secretary of State. Chapter 738, Statutes of 2026. |
| Sep. 28, 2026 | Approved by the Governor. |
| Aug. 30, 2026 | Enrolled and presented to the Governor at 6 p.m. |
| Aug. 25, 2026 | Assembly amendments concurred in. (Ayes 32. Noes 5.) Ordered to engrossing and enrolling. |
| Aug. 24, 2026 | Read third time. Passed. (Ayes 60. Noes 8. Page 6385.) Ordered to the Senate. |
Latest bill textChaptered version, September 28, 2026 · 3,974 words
Senate Bill No. 222
CHAPTER 738
An act to add Section 4737 to the Civil Code, and to add Chapter 7.5 (commencing with Section 51297.50) to Part 1 of Division 1 of Title 5 of the Government Code, relating to housing.
[ Approved by Governor September 28, 2026. Filed with Secretary of State September 28, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
SB 222, Wiener. Residential heat pump water heater or heat pump HVAC systems.
(1) Existing law establishes the State Energy Resources Conservation and Development Commission and prescribes the authorities, duties, and responsibilities of the commission pertaining to energy matters. Existing law requires the commission, on or before January 1, 2019, in consultation with the Contractors State License Board, local building officials, and other stakeholders, to approve a plan that promotes compliance with specified regulations relating to building energy efficiency standards in the installation of central air-conditioning and heat pumps, as specified. Existing law authorizes the commission to adopt regulations to increase compliance with permitting and inspection requirements for central air-conditioning and heat pumps, and associated sales and installations, consistent with the above-described plan.
This bill would establish various requirements and authorizations for the installation of a residential heat pump water heater or heat pump HVAC system, as defined, by, among other things, requiring a city, county, or city and county, beginning July 1, 2027, to adopt and offer asynchronous inspections for installations that do not require a licensed contractor and building inspector to be simultaneously present during the inspection. The bill would additionally require a city, county, or city and county, except as specified, to post specific information online, and on or before July 1, 2028, to implement an online automated permitting process for the installation of a residential heat pump water heater or heat pump HVAC system that issues permits in real time to a licensed contractor that meets certain criteria. The bill would require the criteria to include, among others, that the licensed contractor certify under penalty of perjury that they have performed a load calculation to properly size the new equipment, as specified. By expanding the crime of perjury, the bill would impose a state-mandated local program. By imposing these various new duties on the described local entities, the bill would impose a state-mandated local program.
The bill would authorize a city, county, or city and county, except as specified, to require up to one nondiscretionary permit per installation of a residential heat pump water heater or heat pump HVAC system in which the local entity administratively approves an application to install the residential heat pump water heater or heat pump HVAC system.
The bill would additionally authorize a city, county, or city and county to apply only certain planning or zoning or workforce labor standards on the installation of a residential heat pump water heater or heat pump HVAC system that are in addition to any state-level requirements. The bill would prohibit a local entity described above from requiring a permit or inspection for plug-in ready window air-conditioner or window heat pump HVAC systems, provided that certain requirements are met, including that the appliance has a voltage rating of 120 volts or less and the appliance is a self-contained unit. The bill would limit the amount a city, county, or city and county may charge as a permit fee for a residential heat pump water heater or heat pump HVAC system, as specified.
The bill would require a local entity described above that applies to receive any funding from the commission to self-certify to the commission its compliance with any applicable portions of the bill’s provisions.
The above provisions would not apply to new residential construction.
The bill would include findings and declarations related to these provisions.
(2) Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments. Among other things, the act makes a provision of the governing document or architectural or landscaping guidelines or policies void and unenforceable if, among other things, the provision prohibits, or includes conditions that have the effect of prohibiting, the use of low water-using plants as a group or as a replacement of existing turf.
This bill would additionally make any provision of the governing documents, architectural guidelines, or policies void and unenforceable if the provision prevents the replacement of a fuel-gas-burning appliance with an electric appliance. The bill would also make any covenant, restriction, or condition contained in any, among other specified agreements, deed, and any provision of a governing document, that effectively prohibits or restricts the installation or use of a residential heat pump water heater or heat pump HVAC system, void and unenforceable. The bill would prohibit an association, among other things, from prohibiting or restricting 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, except as specified.
(3) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
(4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, with regard to certain mandates, no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
The people of the State of California do enact as follows:
SECTION 1.
Section 4737 is added to the Civil Code, to read:4737.
(a) Notwithstanding any other law, any provision of the governing documents, architectural guidelines, or policies shall be void and unenforceable if the provision prevents the replacement of a fuel-gas-burning appliance with an electric appliance that complies with all applicable state and local building codes.(b) (1) Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document, that effectively prohibits or restricts the installation or use of a residential heat pump water heater or heat pump HVAC system, as defined in Section 51297.51 of the Government Code, is void and unenforceable.
(2) Subject to paragraph (3), an association shall 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 shall not do any of the following:
(A) Charge any fee to a member in connection with the installation, upgrade, replacement, or use of a residential heat pump water heater or heat pump HVAC system.
(B) Require a member to use a specific residential heat pump water heater or heat pump HVAC system contractor or product.
(C) Claim to receive any rebate, credit, or commission in connection with a member’s installation, upgrade, replacement, or use of a residential heat pump water heater or heat pump HVAC system.
(D) Require a member to remove a residential heat pump water heater or heat pump HVAC system or prevent the replacement or upgrade of an existing residential heat pump water heater or heat pump HVAC system.
(3) Paragraph (2) shall not apply if the association establishes either of the following:
(A) The installation, upgrade, replacement, or use of the residential heat pump water heater or heat pump HVAC system would violate federal, state, or local law.
(B) A permit from a designated permitting authority is required for the installation, upgrade, replacement, or use of the residential heat pump water heater or heat pump HVAC system, and that permit is not granted.
(c) A residential heat pump water heater or heat pump HVAC system shall meet applicable health and safety standards and requirements imposed by law.
(d) Nothing in this section shall be construed to limit or restrict the ability of an association to require a member whose installation, upgrade, replacement, or use of a residential heat pump water heater or heat pump HVAC system affects the common area or an exclusive use common area to be responsible for the repair of any damage to the common area or an exclusive use common area, or to another member’s separate interest, that is caused by the installation, operation, maintenance, or removal of that residential heat pump water heater or heat pump HVAC system.
SEC. 2.
Chapter 7.5 (commencing with Section 51297.50) is added to Part 1 of Division 1 of Title 5 of the Government Code, to read:CHAPTER 7.5. Residential Heat Pump System Installation
51297.50.
The Legislature finds and declares all of the following:(a) The oversight of permitting for residential heat pump water heater and heat pump heating, ventilation, and air-conditioning (HVAC) systems is a matter of statewide concern and not a municipal affair. Therefore, this chapter shall apply to all cities and counties, including a charter city.
(b) Nothing in this chapter is intended to imply the approval of any other local fees for heat pump permitting not specified in this chapter.
(c) It is the intent of the Legislature that local agencies do not adopt ordinances that create unreasonable barriers to the installation of heat pumps and not unreasonably restrict the ability of home and residential property owners to install heat pumps.
(d) It is the policy of the state to promote and encourage the use of zero-emission water heating and space heating and cooling systems, and to limit obstacles to their use.
(e) It is the intent of the Legislature that local agencies comply not only with provisions declared in this section, but also the legislative intent to encourage the installation of residential heat pump systems by removing obstacles to, and minimizing costs of, permitting, so long as the action does not supersede the building official’s authority to identify and address higher priority life-safety situations.
(f) Each state entity, including the commission and the Department of Housing and Community Development, should streamline codes and standards compliance processes with the intent of increasing permitted work without undermining the integrity of the code measures, especially when it comes to appliance retrofits.
51297.51.
For purposes of this chapter, the following definitions apply:(a) “Commission” means the State Energy Resources Conservation and Development Commission, which is also known as the Energy Commission.
(b) “HVAC” means heating, ventilation, and air-conditioning.
(c) “Residential heat pump water heater or heat pump HVAC system” means a single heat pump water heater or heat pump HVAC system that serves one residential dwelling unit.
(d) (1) “Swapout” means a residential heat pump water heater or heat pump HVAC system installation where a new heat pump water heater or HVAC air handler and outdoor coil is being installed in the same location on a property as the prior water heater or air handler and condenser that it is replacing.
(2) “Swapout” does not include either of the following:
(A) An installation that requires modification, replacement, or installation of more than 25 linear feet of ductwork.
(B) An installation that replaces a package unit with a split system or a split system with a package unit.
51297.52.
(a) Beginning July 1, 2027, a city, county, or city and county shall adopt and offer asynchronous inspections for installations of residential heat pump water heater or heat pump HVAC systems that do not require a licensed contractor and building inspector to be simultaneously present during the inspection of an installation of a residential heat pump water heater or heat pump HVAC system.(b) A building inspector may contact the licensed contractor who performed the installation of the heat pump water heater or heat pump HVAC system by telephone call or real-time video conferencing during their inspection.
(c) If a building inspector determines during an asynchronous inspection that there is an issue with an installation of the heat pump water heater or heat pump HVAC system and that the licensed contractor who performed the installation must be present to perform tests or cure the installation, the building inspector may require the licensed contractor who performed the installation to schedule an additional inspection in which the building inspector and the licensed contractor who performed the installation are both required to be simultaneously present during the additional inspection.
(d) If a building inspector determines during an asynchronous inspection that a contractor must be onsite in order to allow the building inspector into a place that needs to be inspected, the building inspector may require the licensed contractor who performed the installation to schedule an additional inspection in which the building inspector and the licensed contractor who performed the installation are both required to be simultaneously present during the additional inspection, if deemed necessary by the building inspector.
(e) Nothing in this section shall be construed to require a city, county, or city and county to discontinue offering inspection options for the installation of a residential heat pump water heater or heat pump HVAC system wherein a building inspector and licensed contractor who performed the installation are simultaneously present.
(f) A city or county may adopt and offer remote inspections, consistent with applicable law, for a heat pump water heater or heat pump HVAC system in lieu of an asynchronous inspection pursuant to this section.
51297.53.
(a) On or before January 1, 2028, a city, county, or city and county may require up to one nondiscretionary permit per installation of a residential heat pump water heater or heat pump HVAC system in which the city, county, or city and county administratively approves an application to install the residential heat pump water heater or heat pump HVAC system.(b) This section shall not be construed to prevent a city, county, or city and county from issuing separate permits for a panel replacement or structural work conducted as part of the residential heat pump installation.
(c) Notwithstanding subdivision (a), a city, county, or city and county may require more than one nondiscretionary permit requested by a licensed contractor per installation of a residential heat pump water heater or heat pump HVAC system if the building official makes written findings based upon substantial evidence that the proposed installation would have a specific, adverse impact on public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.
51297.54.
(a) A city, county, or city and county may apply only any of the following planning or zoning or workforce labor standards on the installation of a residential heat pump water heater or heat pump HVAC system, in addition to any state-level requirements:(1) Additional standards for setbacks for installations not to exceed 3 feet in side yards and backyards or 10 feet in front yards. If a city, county, or city and county requires the submission of site plans for applications for permits for installations of residential heat pump water heater or heat pump HVAC systems, the city, county, or city and county shall require only site plan information directly relevant to the installation or to determining setback compliance. Site plans shall not be required for applications for permits for a swapout.
(2) Additional standards that conform to local laws, including reach codes, designed to encourage the adoption of zero-emission equipment or improvement of building efficiency.
(3) Additional planning or zoning standards relating to the installation of a residential heat pump water heater or heat pump HVAC system if the city, county, or city and county adopts an ordinance that includes substantial evidence that the standard is designed to mitigate the specific, adverse impact on the public health or safety at the lowest cost possible.
(4) Additional standards to regulate noise in a residential setting for inverter-based heat pump technologies, not to be less than 15 decibels higher than any statutory maximum regulating decibel limits for noninverter-based technologies.
(5) Any additional workforce labor standards. For purposes of this subdivision, “workforce labor standards” include, but are not limited to, the payment of prevailing wages and the employment of apprentices from apprenticeship programs approved by the Division of Apprenticeship Standards.
(b) A city, county, or city and county shall not require a permit or inspection for plug-in ready window air-conditioner or window heat pump HVAC systems, provided that all of the following requirements are met:
(1) The appliance has a voltage rating of 120 volts or less.
(2) The appliance is a self-contained unit.
(3) The installation of the appliance does not require the installation of a dedicated circuit for the appliance.
(4) The installation of the appliance does not require an upgrade to the electrical panel to accommodate the additional load of the appliance.
(5) The installation of the appliance does not require the installation of drainage or structural modifications.
51297.55.
(a) On or before July 1, 2028, a city, county, or city and county, other than a city, county, or city and county described in subdivision (c), shall, consistent with the goals and intent of this chapter, implement an online, automated permitting process that issues permits in real time to a licensed contractor for the installation of a residential heat pump water heater or heat pump HVAC system that meets all of the following criteria:(1) The installation is for a residential heat pump water heater or heat pump HVAC system that does not require installation of a new electrical panel or structural work.
(2) The installation is a swapout.
(3) If the installation is for a residential heat pump HVAC system, the licensed contractor certifies under penalty of perjury that they have performed a load calculation to properly size the new residential heat pump HVAC equipment per the Air Conditioning Contractors of America Association, Inc. Manual J Residential Load Calculation, the Sheet Metal and Air Conditioning Contractors’ National Association Residential Comfort Systems Installation Standards Manual, the California Mechanical Code, or successor provisions, and provides the load calculation to the local authority having jurisdiction upon request.
(b) (1) The methods that a city, county, or city and county may use to comply with the requirements described in subdivision (a) may include, but are not limited to, an automated platform that can issue permits in real time or using an online form-based system that can instantly issue permits upon completion of the online form.
(2) If a city, county, or city and county requires a CF1R form at the time of the permit application, the city, county, or city and county shall not otherwise require information duplicative to and supplied on the CF1R form provided by the applicant, except for the applicant’s name and the residential address of the project.
(c) All liabilities and immunities, including, but not limited to, the immunities provided in Sections 818.4, 818.6, and 821.2, applicable to cities, counties, and cities and counties shall apply to any permits issued through an online, automated permitting platform and any inspections conducted in connection with those permits.
(d) This section shall not apply to a city with a population of fewer than 5,000 persons or a county with a population of fewer than 150,000 persons, including each city within that county.
51297.56.
(a) For an installation of a residential heat pump water heater or heat pump HVAC system, a city, county, or city and county, other than a city, county, or city and county described in subdivision (c), shall publish and make publicly available a list of the requirements adopted pursuant to Section 51297.54, any required permitting documentation, and a list of all relevant fees and fee amounts that may be imposed by the city, county, or city and county on a residential heat pump water heater or heat pump HVAC system, including, but not limited to, permit fees and inspection fees, on their internet website.(b) The city, county, or city and county shall allow an applicant to submit a permit application and associated documentation electronically, and shall allow the applicant to submit an electronic signature on all forms, applications, and other documentation instead of a wet signature by an applicant.
(c) This section shall not apply to a city with a population of fewer than 5,000 persons or a county with a population of fewer than 150,000 persons, including each city within that county.
51297.57.
(a) (1) A city, county, or city and county, except as provided in subdivision (b), shall not charge a permit fee for a residential heat pump water heater or heat pump HVAC system that exceeds the estimated reasonable cost of providing the service for which the fee is charged, subject to the following limitations:(A) The permit fee for a residential heat pump water heater system shall not exceed one hundred fifty dollars ($150).
(B) The permit fee for a residential heat pump HVAC system shall not exceed two hundred dollars ($200).
(2) Paragraph (1) shall not apply to a city with a population of fewer than 5,000 persons and a county with a population of fewer than 150,000 persons, including each city within that county.
(3) The limitations imposed by paragraph (1) shall not be construed to apply to technology fees charged by third-party vendors for services adopted by jurisdictions to process compliance checks and issue permits.
(b) (1) Notwithstanding subdivision (a), a city, county, or city and county may charge a permit fee for the installation of a residential heat pump water heater or a heat pump HVAC system that exceeds the fee limits specified in subdivision (a) if the city, county, or city and county, as part of a written finding and an adopted resolution or ordinance, provides substantial evidence of the reasonable cost to issue the permit.
(2) A permit fee described in paragraph (1) shall be subject to all of the following requirements:
(A) The fee shall correspond to the typical reasonable cost demonstrated by the city, county, or city and county for the equipment type.
(B) The fee shall be set at a regular fixed amount per appliance type.
(C) The fee shall be listed publicly.
(c) A city, county, or city and county shall not apply additional charges above the publicly listed fee.
51297.58.
If a city, county, or city and county applies to receive any funding from the State Energy Resources Conservation and Development Commission, the city, county, or city and county shall self-certify to the commission its compliance with any applicable provisions of this chapter.51297.59.
This chapter does not apply to new residential construction.SEC. 3.
The Legislature finds and declares that the oversight of permitting for residential heat pump water heater and heat pump heating, ventilation, and air-conditioning (HVAC) systems is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 2 of this act, adding Chapter 7.5 (commencing with Section 51297.50) to Part 1 of Division 1 of Title 5 of the Government Code, applies to all cities, including charter cities.SEC. 4.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
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