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City administrator urges pause on natural-gas utility actions pending Climate Commitment Act market clarity
Summary
City Administrator Chris Searcy presented CCA compliance projections and market risks, noting high auction prices (~$65/metric ton), depleted allowance reserves, and limited evidence that California utilities achieved substantial gas-emissions reductions. He recommended waiting for market linkage and updated state data before proposing new city policy.
City Administrator Chris Searcy told the Uniontown City Council on May 11 that, after reviewing available data from other jurisdictions, the city should hold off on firm policy actions for its natural-gas utility tied to the Climate Commitment Act (CCA).
Searcy reviewed comparative data from California and Washington, saying California’s program began earlier and that allowance auction dynamics differ. He told the council Washington’s most recent auction price was about $65 per metric ton, while California’s recent auctions were under $30 per ton. He said the state’s allowance-price containment reserve was largely deployed early in the program (staff stated 18.6 million allowances were shifted into the first compliance period and that only roughly 600,000 remain), and that linkage timing with California and Quebec is uncertain.
Searcy said the data show limited evidence that gas utilities in California significantly reduced greenhouse-gas emissions beyond the early years of the program and argued that given the current uncertainty — particularly around linkage and incomplete Washington reporting — it is reasonable for the city to 'sit back and watch' before adopting aggressive local actions. He suggested that staff could later explore options to help customers who want to reduce gas use (for example, incentive approaches for heat pumps) but said no concrete policy proposals were ready for council consideration.
He announced that the council would hold an executive session to discuss the city’s CCA auction bidding strategy, citing the need to protect bidding plans from public disclosure.
What happens next: staff will continue to monitor state reporting, allowance prices, and linkage outcomes before returning with recommendations or incentive options for customers who seek to reduce gas use.
