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City administrator tells council to 'pause and observe' on CCA gas‑utility compliance while allowance market settles
Summary
City Administrator Chris Searcy briefed the Uniontown City Council on Climate Commitment Act (CCA) impacts for the city's natural‑gas utility, noting high current auction prices (~$65/metric ton), near depletion of the allowance price‑containment reserve (about 600,000 left), and recommended waiting for market linkage and state reports before seeking policy direction.
City Administrator Chris Searcy told the Uniontown City Council on May 11 that current data do not yet justify aggressive local policy action to force rapid gas‑system changes under the state’s Climate Commitment Act (CCA).
Searcy reviewed comparative data from California and Washington, noting auction price differences and the potential trajectory of allowance costs. “The last [auction] was about $65 a metric ton,” Searcy said, contrasting that with California’s auction, which he said has been closer to $30 a ton. He showed staff estimates that the CCA compliance charge could remain modest in the near term for most customers but rise substantially under certain price‑path scenarios.
Searcy highlighted several sources of uncertainty: whether and when Washington links its market with California and Quebec (which could lower prices), the state’s delayed greenhouse‑gas reporting for years covered by the CCA, and the near exhaustion of the allowance price‑containment reserve (Searcy said roughly 600,000 allowances remain and most may be used this year). Given those uncertainties, his recommendation was cautious: monitor market outcomes and state rulemaking before directing staff to propose local compliance policies.
The presentation included scenarios projecting customer charges; Searcy noted that, depending on price trajectories, increases to the CCA component of a customer’s bill could range from a few cents today to several‑tenths of a dollar per therm over a multi‑year horizon, with newer accounts already on higher price lines. He said staff has not prepared a formal policy proposal and was seeking no immediate council direction beyond authorization for staff to continue monitoring and to discuss auction‑bid strategy in executive session.
The council recessed into executive session under RCW 42.30.110(1)(q) to discuss CCA auction‑bidding strategy for 10 minutes; after return the council adjourned. Searcy said staff may later bring forward incentive ideas to help customers choose lower‑carbon options voluntarily, but no concrete incentive program was presented for council approval at this meeting.
Provenance: Staff presentation and chart discussion are recorded in the meeting transcript; the executive‑session announcement cites RCW 42.30.110(1)(q) and a 10‑minute recess.
