CEDA targets decarbonization and electrification strategies for the built environment. In particular, a potential high-performance measure to decarbonize and meet CARB 2030 goals is to provide low GWP refrigerant HVAC systems. This approach will comply with future California regulations, meet innovative technology and reduce carbon emissions.
What Are Low GWP Refrigerants?
GWP stands for Global Warming Potential, it is a metric used to establish how harmful a refrigerant is to our atmosphere. Essentially, the lower the value, the less damaging a refrigerant is to the environment if it were to leak out of its housing unit. Thus, this measure encourages project teams to select a refrigerant with a “low” GWP value.
California SB1206 prohibits entry into commerce, sale or distribution of HFCs above GWP limits. Specifically, it will prohibit HFCs with a GWP of 2,200 and above starting in 2025, progressively reducing to 750 in 2035.
Common refrigerants range between R-32 and R-513A. Additionally, some others that have been mentioned being put into production by manufacturers are CO2, 1234ze(E) and ammonia.
Qualifications for CEDA Inducements
To be eligible for inducements, a project must meet the following criteria:
- Provide one or more pieces of equipment utilizing low-GWP refrigerants with a GWP of less than 250, serving the HVAC, domestic/service hot water, and/or process loads (if applicable) for a commercial, industrial, public, agricultural, or high-rise multi-family building.
- Provide engineered, stamped, and permitted construction plans demonstrating that the project design fully complies with all state and local jurisdiction requirements and regulations.
- Provide equipment submittals stamped and approved by the responsible engineer of record.
- Provide equipment cost information.
- Post-occupancy evaluation may include data collection or datalogging to assess system performance (if project is selected for data collection).
Notes:
- Inducements will be calculated using the Refrigerant Avoided Cost Calculator developed by E3 and are based on metric tonnes of CO₂e avoided
- Project may be selected by PG&E for a future case study
- Measure requirements are subject to change; this guide reflects information available as of April 2025 — for the most current measure requirements, please contact CEDA@willdan.com
Main Refrigerants at Play
The graph below illustrates the relationship between lower GWP refrigerant values and the density (pressure) of main refrigerant groups. This comparison helps when considering capacity needs and products that may meet your project needs.

Benefits of Adoption
- Decarbonization and meet CARB 2030 goals
- In alignment with SB1206
- Less harmful to the environment
- Using low GWP refrigerants safeguard your long term investment
Challenges or Constraints of Adoption
- Low GWP and high capacity are considered mildly flammable
- Less efficient, more electric use
- Equipment change out (have to upsize equipment for new refrigerant)
- Price increase
- Equipment availability
Contact us today to learn more about the CEDA program and how it can benefit your projects!

