(The Center Square) – Facing $8 million in penalties, the Spokane City Council requested an exemption on Monday for a local Waste-to-Energy facility, subject to the state’s Climate Commitment Act in 2027.
The plea topped a list of state legislative priorities that the officials approved on Monday. Other issues include expanding tax-deferral programs that convert parking lots into affordable housing, increasing funding for homelessness and police, bolstering what many call the state’s “sanctuary” law, and more.
Spokane requested a CCA exemption for the 2025 legislative session, too, but it never came to fruition as the Democratic majority was focused on closing a massive budget deficit. Councilmembers Michael Cathcart and Jonathan Bingle, the two fiscal conservatives, were the only ones to vote against the list.
“The language here misses the mark,” Cathcart said. “Unfortunately, when you negotiate with yourself, I don’t think the outcome is always as good as it could be; so for those reasons, I’m going to vote no.”
Cathcart said he has long championed the WTE facility and efforts to avoid penalties. The state passed the CCA in 2021 to cap the amount of emissions companies can emit, unless they purchase additional allowances. Entities typically pass those costs on to consumers at the gas pump and in grocery stores.
According to the legislative priorities, Spokane’s WTE facility is the only solid waste disposal system in the state that would fall under the CCA. The council may upgrade the facility to comply with the CCA, but it would take time, as local taxpayers face roughly $8 million in annual penalties starting in 2027.
If the Legislature doesn’t grant this exemption, Spokane plans to pass on those penalties to residents through higher utility rates starting in 2027. The council has already raised utility rates and taxes over the last few years to address its budget woes, so these penalties would make it even more expensive.
Notably, the WTE facility produces fewer greenhouse gases than landfills, which are already exempted.
“To correct this inequity, reduce costly CCA penalties and protect jobs, the City seeks more time and state support to implement technologies that reduce greenhouse gas emissions,” according to the list.
Cathcart felt the language may reduce their leverage if it sounds like the city is open to a compromise rather than making a clear request. He wants to protect taxpayers from the “obscene and serious rate increases” they could face if lawmakers reject the exemption or put off their request for another year.
Spokanite Larry Andrews was the only resident to testify, thanking the council for prioritizing the WTE facility as it did last year. Andrews often criticizes the progressive majority, so Council President Betsy Wilkerson and Councilmember Paul Dillon thanked him for his support and emphasized the deadline.
The council received the results of a $650,000 CCA-funded feasibility study in September that looked at the cost of upgrading the WTE facility to comply. One local company developing the carbon capture technology placed the figure at $210 million, which the city would aim to pay off over about a decade.
That project would also eventually establish a recurring revenue stream for the city by selling carbon.
“I think there is a path forward on this,” Dillon said, “especially because of the upcoming deadline.”
