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City administrator briefs council on Climate Commitment Act compliance; council to monitor market linkage and rulemaking
Summary
City Administrator Chris Searcy presented analysis showing uncertain auction prices and varying projected customer impacts under Washington's CCA; staff recommended watching linkage with California/Quebec markets and state rulemaking and did not request immediate policy direction. Council recessed to a short executive session on auction bidding strategy.
City Administrator Chris Searcy briefed the Uniontown City Council May 11 on the potential impacts of the Climate Commitment Act (CCA) on the city's natural‑gas utility and ratepayers.
Searcy compared Washington’s early auction prices (citing a recent auction around $65 per metric ton) with California’s historic prices (he cited figures under $30 per metric ton) and used those comparisons to model future compliance costs. He explained that if the Washington program tracks higher floor and inflation‑plus trajectories, compliance costs for utility customers could increase substantially over time; alternatively, if linkage with lower‑priced markets occurs, impacts would be lower. As an illustrative example, Searcy showed modeled customer charges of roughly $0.33 per CCF under some scenarios, versus much lower cents‑per‑CCF impacts on the low end.
Searcy told council that California utilities did not clearly show large customer decarbonization effects after the program’s early years and that Washington’s reported emission data lags the period covered by the CCA, creating uncertainty. He recommended the city "sit back and observe" pending linkage outcomes, state rulemaking (including allowance‑reserve decisions), and coverage of specific emissions sources. Searcy said there was no immediate policy action recommended but noted staff would consider incentive options for customers who voluntarily reduce gas use.
After the briefing council recessed into a 10‑minute executive session under RCW 42.30.11(1)(q) to discuss CCA auction bidding strategy; the council returned and adjourned at 8:03 p.m.
