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City administrator urges caution on CCA compliance costs and recommends watching market linkage
Summary
City Administrator Chris Searcy briefed council on Climate Commitment Act (CCA) compliance cost projections, noting Washington auction prices (~$65/metric ton) exceed California’s and that market linkage, allowance reserves and Ecology rulemaking create uncertainty; he recommended pausing on immediate policy changes and observing developments.
City Administrator Chris Searcy presented an analytical update on the Climate Commitment Act (CCA) and its implications for the city’s natural‑gas utility, recommending council take a cautious, observational approach rather than immediate policy action.
Searcy compared Washington’s early auction prices (about $65 per metric ton) with California’s historical prices (under $30 per ton), noted that Washington is currently in the first four‑year compliance period and that linkage with California/Quebec markets could materially affect allowance prices. He presented charts showing compliance costs rising over time under several scenarios, explained that newer gas connections face higher charges than older customers and said statewide emissions reporting and Ecology rulemaking (including allowance price‑containment reserve allocations) are creating near‑term uncertainty.
"So that's kinda where we're at currently with that," Searcy told the council, arguing there was not yet evidence requiring urgent local policy action and recommending the city monitor linkage and Ecology decisions. He said the council would go into a short executive session to discuss bid/auction strategy under RCW 42.30.11(1)(q).
What’s next: Council recessed into a 10‑minute executive session to discuss bid strategy; Searcy said staff will continue to collect data and return if policy action becomes necessary.
