Alberta taking feds to court to challenge legality of heating oil carbon tax exemption

Accountability for Ottawa’s carbon tax double standard

Alberta’s government has filed an application at the federal court challenging the constitutionality and legality of Canada’s heating oil carbon tax exemption.

Alberta’s government is standing up against the federal government’s carbon tax exemption for heating oil to protect Albertans from the double standard Ottawa has created with the carbon tax, which means Albertans continue to pay carbon taxes to stay warm in winter.

Last fall, after years of insisting that the carbon tax is applied equally across Canada, the federal government exempted the carbon tax for heating oils, which are used predominantly in Atlantic Canada and Quebec. Over the last year, the federal government has refused multiple requests to grant a similar carve-out on other heating methods from Alberta and others across the country who are also facing rising costs of living.

Alberta’s government will now take this fight to the courts. Alberta filed an application seeking judicial review of the exemption with the Federal Court on Oct. 29, asking the court to declare that the exemption is both unconstitutional and unlawful. The application argues that Ottawa’s carbon tax exemption for heating oil is unconstitutional and inconsistent with the Government of Canada’s stated purpose for enacting the Greenhouse Gas Pollution Pricing Act.

“Last year, Ottawa decided Canadians in the East deserved a three-year break from paying the carbon tax on their home heating costs. While we’re happy for these Canadians, Alberta, Saskatchewan and other provinces who heat their homes with natural gas have been deliberately excluded from these savings. Albertans simply cannot stand by for another winter while the federal government picks and chooses who their carbon tax applies to. Since they won’t play fair, we’re going to take the federal government back to court.”

Danielle Smith, Premier

While the Supreme Court of Canada previously found the Greenhouse Gas Pollution Pricing Act was constitutional, it found that Canada’s jurisdiction to regulate greenhouse gas emissions was limited to the ability to create minimum national standards for carbon pricing for the purpose of reducing greenhouse gas emissions.

Alberta strongly opposes the federal carbon tax exemption on heating oil, as the federal government is no longer creating minimum national standards that apply evenly across the country, and is instead creating a regime that favours one region and fuel type over others.

“This exemption is not only unfair to the vast majority of Canadians, but it is also unlawful as the federal government does not have the authority to make special exemptions for certain parts of the country under the Greenhouse Gas Pollution Pricing Act. The federal government isn’t even following its own laws now. Someone needs to hold them accountable, and Alberta is stepping up to do just that.”

Mickey Amery, Minister of Justice and Attorney General

The federal carbon tax adds to the rising cost of living for all Canadians. By 2030, it will cost Canadians $25 billion every year, in addition to lowering the gross domestic product (GDP) by $9 billion. In addition, the Bank of Canada has estimated that the federal carbon tax increases inflation by 0.15 per cent year over year.

Quick facts

Since Apr. 1, 2024, Albertans have been paying around 35 cents in federal taxes on every litre of fuel – along with the carbon tax, that also includes the federal excise tax and the GST.
The following percentage of households use home heating oil by province:
- Forty per cent in Prince Edward Island
- Thirty-two per cent in Nova Scotia
- Eighteen per cent in Newfoundland and Labrador
- Seven per cent in New Brunswick
- Four per cent in Quebec
- Two per cent in Ontario
- One per cent in British Columbia
- Less than one per cent in Alberta, Saskatchewan and Manitoba

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2025 Federal Election

Next federal government should recognize Alberta’s important role in the federation

Published on March 28, 2025

Todayville

From the Fraser Institute

By Tegan Hill

With the tariff war continuing and the federal election underway, Canadians should understand what the last federal government seemingly did not—a strong Alberta makes for a stronger Canada.

And yet, current federal policies disproportionately and negatively impact the province. The list includes Bill C-69 (which imposes complex, uncertain and onerous review requirements on major energy projects), Bill C-48 (which bans large oil tankers off British Columbia’s northern coast and limits access to Asian markets), an arbitrary cap on oil and gas emissions, numerous other “net-zero” targets, and so on.

Meanwhile, Albertans contribute significantly more to federal revenues and national programs than they receive back in spending on transfers and programs including the Canada Pension Plan (CPP) because Alberta has relatively high rates of employment, higher average incomes and a younger population.

For instance, since 1976 Alberta’s employment rate (the number of employed people as a share of the population 15 years of age and over) has averaged 67.4 per cent compared to 59.7 per cent in the rest of Canada, and annual market income (including employment and investment income) has exceeded that in the other provinces by $10,918 (on average).

As a result, Alberta’s total net contribution to federal finances (total federal taxes and payments paid by Albertans minus federal money spent or transferred to Albertans) was $244.6 billion from 2007 to 2022—more than five times as much as the net contribution from British Columbians or Ontarians. That’s a massive outsized contribution given Alberta’s population, which is smaller than B.C. and much smaller than Ontario.

Albertans’ net contribution to the CPP is particularly significant. From 1981 to 2022, Alberta workers contributed 14.4 per cent (on average) of total CPP payments paid to retirees in Canada while retirees in the province received only 10.0 per cent of the payments. Albertans made a cumulative net contribution to the CPP (the difference between total CPP contributions made by Albertans and CPP benefits paid to retirees in Alberta) of $53.6 billion over the period—approximately six times greater than the net contribution of B.C., the only other net contributing province to the CPP. Indeed, only two of the nine provinces that participate in the CPP contribute more in payroll taxes to the program than their residents receive back in benefits.

So what would happen if Alberta withdrew from the CPP?

For starters, the basic CPP contribution rate of 9.9 per cent (typically deducted from our paycheques) for Canadians outside Alberta (excluding Quebec) would have to increase for the program to remain sustainable. For a new standalone plan in Alberta, the rate would likely be lower, with estimates ranging from 5.85 per cent to 8.2 per cent. In other words, based on these estimates, if Alberta withdrew from the CPP, Alberta workers could receive the same retirement benefits but at a lower cost (i.e. lower payroll tax) than other Canadians while the payroll tax would have to increase for the rest of the country while the benefits remained the same.

Finally, despite any claims to the contrary, according to Statistics Canada, Alberta’s demographic advantage, which fuels its outsized contribution to the CPP, will only widen in the years ahead. Alberta will likely maintain relatively high employment rates and continue to welcome workers from across Canada and around the world. And considering Alberta recorded the highest average inflation-adjusted economic growth in Canada since 1981, with Albertans’ inflation-adjusted market income exceeding the average of the other provinces every year since 1971, Albertans will likely continue to pay an outsized portion for the CPP. Of course, the idea for Alberta to withdraw from the CPP and create its own provincial plan isn’t new. In 2001, several notable public figures, including Stephen Harper, wrote the famous Alberta “firewall” letter suggesting the province should take control of its future after being marginalized by the federal government.

The next federal government—whoever that may be—should understand Alberta’s crucial role in the federation. For a stronger Canada, especially during uncertain times, Ottawa should support a strong Alberta including its energy industry.

Alberta

Province announces plans for nine new ‘urgent care centres’ – redirecting 200,000 hospital visits

Published on March 28, 2025

Government of Alberta

Expanding urgent care across Alberta

If passed, Budget 2025 includes $17 million in planning funds to support the development of urgent care facilities across the province.

As Alberta’s population grows, so does the demand for health care. In response, the government is making significant investments to ensure every Albertan has access to high-quality care close to home. Currently, more than 35 per cent of emergency department visits are for non-life-threatening conditions that could be treated at urgent care centres. By expanding these centres, Alberta’s government is enhancing the health care system and improving access to timely care.

If passed, Budget 2025 includes $15 million to support plans for eight new urgent care centres and an additional $2 million in planning funds for an integrated primary and urgent care facility in Airdrie. These investments will help redirect up to 200,000 lower-acuity emergency department visits annually, freeing up capacity for life-threatening cases, reducing wait times and improving access to care for Albertans.

“More people are choosing to call Alberta home, which is why we are taking action to build capacity across the health care system. Urgent care centres help bridge the gap between primary care and emergency departments, providing timely care for non-life-threatening conditions.”

Adriana LaGrange, Minister of Health

“Our team at Infrastructure is fully committed to leading the important task of planning these eight new urgent care facilities across the province. Investments into facilities like these help strengthen our communities by alleviating strains on emergency departments and enhance access to care. I am looking forward to the important work ahead.”

Martin Long, Minister of Infrastructure

The locations for the eight new urgent care centres were selected based on current and projected increases in demand for lower-acuity care at emergency departments. The new facilities will be in west Edmonton, south Edmonton, Westview (Stony Plain/Spruce Grove), east Calgary, Lethbridge, Medicine Hat, Cold Lake and Fort McMurray.

“Too many Albertans, especially those living in rural communities, are travelling significant distances to receive care. Advancing plans for new urgent care centres will build capacity across the health care system.”

Justin Wright, parliamentary secretary for rural health (south)

“Additional urgent care centres across Alberta will give Albertans more options for accessing the right level of care when it’s needed. This is a necessary and substantial investment that will eventually ease some of the pressures on our emergency departments.”

Dr. Chris Eagle, chief executive officer, Acute Care Alberta

The remaining $2 million will support planning for One Health Airdrie’s integrated primary and urgent care facility. The operating model, approved last fall, will see One Health Airdrie as the primary care operator, while urgent care services will be publicly funded and operated by a provider selected through a competitive process.

“Our new Airdrie facility, offering integrated primary and urgent care, will provide same-day access to approximately 30,000 primary care patients and increase urgent care capacity by around 200 per cent, benefiting the entire community and surrounding areas. We are very excited.”

Dr. Julian Kyne, physician, One Health Airdrie

Alberta’s government will continue to make smart, strategic investments in health facilities to support the delivery of publicly funded health programs and services to ensure Albertans have access to the care they need, when and where they need it.

Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.

Quick facts

The $2 million in planning funds for One Health Airdrie are part of a total $24-million investment to advance planning on several health capital initiatives across the province through Budget 2025.
Alberta’s population is growing, and visits to emergency departments are projected to increase by 27 per cent by 2038.
Last year, Alberta’s government provided $8.4 million for renovations to the existing Airdrie Community Health Centre.