Goleta adopts pilot permit fee waiver to encourage residential heat pumps
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Summary
The City Council established a pilot permit fee waiver program to reduce permitting barriers for residential heat pump installations. Staff said the program aims to accelerate building electrification, capture unpermitted work, and pair with utility and state rebates; council approved a $10,000 pilot fund and directed staff to implement tracking,
The Goleta City Council on June 3 adopted a resolution establishing a pilot heat pump permit fee waiver program intended to lower the permitting barrier for residential electrification projects such as heat pump water heaters and electric space‑conditioning systems.
The council voted unanimously to create the program and a pilot reserve fund of $10,000 to cover waived building permit fees for qualifying residential projects. Staff said the waiver is intended for existing single‑family and multifamily residences at time of replacement (for example, when an old water heater or HVAC unit reaches end of life) and is modeled on similar municipal programs.
Dana Murray, the city’s sustainability manager, told the council the measure aligns with city and state efforts to decarbonize buildings and with the city’s recent energy performance reach code. “One of the major sources of greenhouse gas emissions in our greater community and within our city are building emissions,” Murray said. She said space‑heating and water‑heating appliances are among the largest contributors and that heat pumps are two to three times more energy‑efficient than many conventional systems.
Angeline Faucher, sustainability analyst, provided estimated cost ranges and incentive options. Staff described typical installed price ranges they compiled from national sources and local listings: heat pump water heaters $1,500–$3,000 (unit cost only, plus installation variability); traditional gas water heaters $700–$4,500; ductless mini‑split heat pump units roughly $500–$1,800 for smaller units at retail, with installed ducted systems and full HVAC replacements commonly ranging higher (multiple thousands of dollars). Faucher also summarized rebates and incentives discussed in the meeting, including Central Coast Community Energy (3CE) Electrify Your Home rebates (staff cited up to $2,000 for HVAC and up to $2,500 for heat pump water heaters), an appliance‑replacement voucher program to replace wood or gas heating, an IRA tax credit and forthcoming federal appliance rebates, and other state/local vouchers.
Council members asked about common barriers, especially for older homes and multifamily buildings. Staff said the city does not currently provide a direct electrical panel upgrade program but that 3CE offers up to $2,000 for electrical upgrades and that larger multifamily retrofit programs exist through regional providers. Murray and Faucher said the waiver is designed as a “carrot” to reduce the permitting component that can deter owners from using incentives; they also said tracking permits will allow the city to quantify currently unpermitted installations.
City staff proposed next steps to implement the pilot: develop permit‑tracking changes with the building division so the city can distinguish heat pump projects in its permit system; run bilingual outreach and education tied to existing utility and state rebates; and collect data through the pilot to reassess program size and funding. The staff report notes the program would be time‑limited as a pilot and reviewed once the city collects usage and cost data.
Councilmember Reyes Martin, who made the motion to adopt, and Councilmember Kyriaco, who seconded, both emphasized outreach and the need to target lower‑income households and multifamily properties so incentives do not accrue only to higher‑income homeowners. Council also discussed coordination with Central Coast Community Energy and Tri‑County regional programs for multifamily retrofits.
The resolution approved by council establishes the program and authorizes the pilot funding; staff will return with implementation details, updated permit tracking and outreach materials.
