Permit Closure Requirements for All AC and Heat Pump Installations

A new law, SB1414, requires PG&E to collect proof of permit closure before paying energy efficiency rebates or incentives for central air conditioning or heat pumps and their related fans beginning January 1, 2017.

Why Does This Matter to Me?
Customers already self-certify that their projects comply with all applicable permitting requirements and that they used a licensed contractor if required. Additionally, participating contractors already certify that HVAC measures followed all permitting requirement and provide a permit number for the project.

This new law will require that for central AC and heat pump projects, the customer or contractor also provide proof that the permit was closed by the local building authority. Starting January 1, 2017, PG&E cannot legally pay incentives or rebates to customers or contractors for central air-conditioning or heat pumps and their related fans without collecting proof of permit closure. This may delay the processing of payment and savings claims for some projects.

To comply with law, maintain customer satisfaction, and reach our energy savings goals, all stakeholders need to be aware of this change.

What Measures Are Affected?
For both Advanced Home Upgrade and Home Upgrade pathways:

  • Central air conditioning including: air handlers with air conditioning; split and packaged units
  • Heat pumps including: air handlers with heat pumps; air source, ground source, hybrid etc; split and package units
  • Fans associated with central air conditioning or heat pumps.

Measures that are believed not to be affected:

  • Installation of VFDs onto existing central air conditioning, heat pumps, or fans.
  • Non-fan component replacements (e.g. blower motor upgrades)
  • Cogged V-belts upgrades
  • Quality maintenance measures (except fan replacements)
  • Heat pump water heaters

What Are My Options?
If your rebate or incentive will be issued on or after January 1, 2017, you will need to submit proof of permit closure to Build It Green (in addition to the SQA form) before PG&E can issue payment.

Proof of permit closure documentation varies by jurisdiction and permit type. Until further notice, documentation that indicates proof of permit closure must be provided by the authority having jurisdiction (e.g. local permitting office), include the permit number, customer name and address, and an indication that the permit has been closed and/or final.

You can avoid potential delays in rebate or incentive payments associated with the permit closure process by completing your project and receiving an incentive before December 31, 2016. If you are able and interested in this option, contact your account representative at Build It Green to determine when your project would need to be fully installed in order to meet that deadline.

Note: These requirements apply to all Home Upgrade and Advanced Home Upgrade applications that include affected measures and are not Approved by Desktop QA by 11/30/2016.

Where Can I Find Out More About This Requirement?