City administrator urges caution on Climate Commitment Act impacts; staff recommends monitoring allowance markets

Enumclaw — City Administrator Chris Searcy told the Enumclaw City Council on May 11 that the city should monitor how the state Climate Commitment Act (CCA) markets develop before adopting aggressive local measures for the natural‑gas utility.

Searcy presented comparative data showing Washington's most recent allowance auction settling near $65 per metric ton versus California's auctions that were under $30. He described a range of scenarios: a lower‑price path (closer to California) and a high‑price path (Washington's program as originally designed, indexed to inflation plus 5%), with compliance costs rising substantially under the latter trajectory.

Using per‑CCF examples, Searcy said current CCA charges are modest in the near term — roughly $0.33 per unit for newer connections versus about $0.06–$0.07 for older connections against a typical gas rate around $1.30 — but that costs could grow over the next several years depending on market linkage and Ecology rulemaking. He reviewed California utilities' emissions trends and said reductions in statewide greenhouse‑gas totals appear to have limited direct attribution to gas utilities, stressing uncertainty about how decarbonization of customers will translate into local emissions reductions.

Searcy recommended that the city "pause and observe" pending outcomes of state rulemaking, remaining allowance‑reserve use, and potential linkage with California/Quebec markets, and that the city avoid immediate, aggressive local policy measures until the data are clearer. He said the council's forthcoming executive session would address auction‑bidding strategy under the CCA.

What happens next: Staff will continue monitoring allowance prices, Ecology rulemaking and reporting updates; council did not give specific policy direction beyond scheduling an executive session on bidding strategy.