Enserva’s Provincial Spotlight Series provides an overview of the latest policy updates, regulatory changes, and industry-specific developments in our members’ operating areas. In this edition, we revisit Alberta to explore topics pertinent to the energy services, supply, and manufacturing sectors.
ICYMI: The previous issue, published on November 27th, highlighted British Columbia.
This will be the final issue of our Provincial Spotlight series for the year. Watch for the series return in January.
Political Insights
- Canada-US Tariff Discussion: In light of the potential tariffs threatened by the incoming Trump administration, Premier Danielle Smith, alongside other provincial leaders, called on the federal government to address border security issues that could affect trade. Emphasizing the importance of the U.S. as Alberta’s largest trading partner, Smith reiterated her call for the federal government to eliminate the proposed oil and gas emissions cap, arguing that doing so would strengthen both economic and security ties with the United States.
Regulatory & Policy Updates
- Impact Assessment Act: Alberta’s government has filed another legal challenge against the recently amended federal Impact Assessment Act, asserting that the changes fail to address constitutional concerns identified by the Supreme Court of Canada in 2023.
- Pathways Alliance EIA Exemption: The Alberta Energy Regulator (AER) has decided not to mandate an environmental impact assessment (EIA) for the Pathways Alliance’s proposed $16.5-billion carbon capture and storage project, which plans to connect over 20 oilsands facilities via a 400-kilometre pipeline to a sequestration site in the Cold Lake region. This decision comes despite requests from the Athabasca Chipewyan First Nation and environmental groups for a comprehensive EIA to evaluate potential environmental and community impacts. The AER stated that environmental considerations would be addressed during the standard application processes for the project’s individual components.
- Industry Skills Grant Pilot Program: The new Industry Skills Grant pilot program launched, allocating $5 million to fund industry-led training in high-demand sectors such as aviation, aerospace, construction, and technology. The initiative aims to address critical skill shortages by equipping workers with industry-recognized credentials and transferable skills.
- Application status: Now open – Call for proposal period is November 28, 2024, to January 24, 2025.
- Provincial Border Security: In light of potential US tariffs, Premier Smith is pushing for enhanced border security to prevent illegal drug trafficking and unauthorized migration. She has indicated that Alberta may establish its own border patrols along the Montana border if federal measures are deemed insufficient.
- Pipeline Capacity: The Alberta government is prioritizing strategies to encourage private-sector investment in expanding oil and gas pipeline capacity to the United States. Premier Smith stated the province will not directly subsidize new pipeline projects but will focus on reducing financial risks. This could include partnering with US pipeline companies, leveraging existing infrastructure such as rights-of-way, and increasing capacity through expansions like loops, compression, or twinning. These efforts aim to support Alberta’s record-breaking oil production levels and strengthen energy ties with the US, particularly under the supportive policies of the Trump administration.
Economic & Industry Developments
- Drilling Accelerator Investment: Alberta is allocating up to $50 million from the Technology Innovation and Emissions Reduction (TIER) fund to establish the Alberta Drilling Accelerator, Canada’s first open-access, industry-led drilling test site. This initiative aims to leverage Alberta’s advanced drilling expertise to develop technologies across sectors such as geothermal energy, lithium extraction, oil, and natural gas. The project is expected to drive innovation, create jobs, and support the province’s goal of carbon neutrality by 2050.
- Provincial Response to Federal Emissions Cap: Premier Smith plans to invoke the Alberta Sovereignty Within a United Canada Act to counter the federal government’s proposed emissions cap, emphasizing provincial jurisdiction over natural resources. The motion includes the following key measures:
- Restricting Federal Access to Data: Alberta seeks to declare greenhouse gas emissions data collected by companies as provincial property, potentially restricting federal employees’ access to oil and gas facilities. This move challenges federal oversight.
- Implementing a Royalty-in-Kind Program: The province aims to collect oil and gas royalties in product form rather than cash, enabling Alberta to market its resources directly. This strategy asserts greater control over resource management and could reduce reliance on federal regulations.
- Wind and Solar Development Restrictions: Alberta announced new regulations for wind and solar energy projects aimed at balancing environmental protection, agricultural productivity, and visual landscape preservation. Key measures include:
- Buffer Zone Restrictions: A 70,000-square-kilometre “no-go” zone for wind projects near the Rocky Mountains, extending to Calgary’s western edge.
- Agricultural Land Protections: Projects on prime agricultural land must demonstrate compatibility with existing farming operations, including livestock and crops.
- Visual Impact Assessments: Renewable projects near scenic areas such as Cypress Hills provincial park will undergo strict reviews to assess and mitigate visual impacts.
- Reclamation Cost Security: Developers must provide upfront security or bonds covering future land reclamation costs to ensure long-term site restoration.
Zone requirements are effective immediately, and the reclamation security requirement comes into effect on January 1.
Open Consultations
- Emissions Cap Regulations Consultation: The Government of Canada is currently holding consultations for the Proposed Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations. The consultation period on the draft regulations will be open until January 8, 2025.
- Submit Comments: Feedback to the draft regulations can be made through the online commenting feature of the Canada Gazette. Feedback can also be made specifically on the draft quantification methods for the cap.
- Notice of Objection: If you wish to formally object to the proposed regulations, you can file a Notice of Objection as outlined in the Proposed Regulatory Text section of the Gazette. Enserva members seeking support to file a Notice of Objection can access our ready-to-send template.
- Budget 2025 Consultation: The Government of Alberta is seeking public input on Budget 2025 to inform its financial priorities. As of December 3, Albertans can participate through an online survey. The consultation period runs until January 12, 2025.
- Feedback from businesses, municipalities, community groups, and individuals will be considered in shaping the budget, which aims to support health care, education, and economic stability.
Challenges & Risks
- Federal-Provincial Misalignment: Diverging priorities on climate and energy policy create uncertainty for long-term planning and investment.
- Global Market Dynamics: Fluctuations in oil demand and prices, coupled with geopolitical tensions, pose risks to Alberta’s economic stability.
Upcoming Industry Events
- Petrochem Canada West 2025 – March 25-26, 2025.
- Alberta Energy Efficiency + Innovation Summit – April 2025.
- Call for speakers now open.
The Bottom Line
Alberta’s energy sector is navigating significant changes shaped by regulatory updates, political dynamics, and market pressures. As Alberta focuses on asserting its energy autonomy while balancing federal regulations, the coming months present critical opportunities for companies to actively engage in shaping the regulatory landscape and ensuring their interests are represented.
