Alberta
Federal and Provincial governments to spend $400 million to clean up Alberta oil and gas sites, create thousands of jobs
Funds target cleanup on Indigenous oil and gas sites
Two new rounds of the Site Rehabilitation Program will provide $400 million to create thousands of jobs for Albertans while completing significant environmental cleanup across the province – including on First Nations reserves and Metis Settlements.
The governments of Alberta and Canada are advancing their commitment to ensure Indigenous businesses and communities play a meaningful role in Alberta’s post-pandemic energy strategy by targeting $100 million of federal Site Rehabilitation Program (SRP) grant funding to clean up inactive oil and gas sites in Indigenous communities across Alberta.
Alberta’s government worked with Indigenous communities, Indigenous businesses, the Indian Resource Council and the Metis Settlements General Council to develop the details of this grant allotment, which includes $85 million for First Nations reserves and $15 million for Metis Settlements to work with licensees to close sites located on or around their lands.
“The Site Rehabilitation Program is cleaning up legacy oil and gas sites across the province and creating thousands of much-needed jobs. As stewards of the land, this funding will ensure that Indigenous people benefit from resource development on land that was first inhabited by their ancestors.”
“Working with Minister Savage and the Government of Alberta, we are creating jobs, cleaning up our environment, and supporting the hard-working people in our oil and gas sector – including in First Nations and Métis communities.”
“This is an investment in a strong future for Indigenous people in Alberta, who will benefit from the jobs created and the reclaimed lands in their communities. Programs like this are game-changers for Indigenous communities.”
“First and foremost, I am thankful to the Creator for another day and for the bounty that Mother Earth provides. The SRP Indigenous set aside will allow Alberta First Nations and Metis Settlements to reduce liabilities by decommissioning and cleaning up well sites across Alberta. During this time, First Nations-owned companies and member-owned companies, along with existing and new partnership creations, can get working to create gainful employment in a difficult period as this pandemic and downturn of the oil industry has caused hardships for many. We look forward to working with the province, ministers, industry, Indian Resource Council and service providers to make this program a success. ‘Our Mother Earth takes care of us, as her children, we need to take care of her.’”
“This $100-million collaboration between First Nations represented by the Indian Resource Council, the Metis Settlements and the Government of Alberta shows unprecedented progress towards reconcili-action in the protection of land, lives and livelihoods.”
A second new funding allotment will provide up to $300 million to oil and gas producers who paid for closure work in 2019 or 2020. This is the program’s largest grant period and is designed to give contractors and licensees the funding and time to work on closure projects of all scopes and sizes – leading to the cleanup of a significant number of oil and gas sites across the province.
“Closure work creates jobs and positive environmental outcomes that enhance Alberta’s ESG record and provides valuable economic benefits to rural communities. PSAC has long advocated for a mechanism to accelerate the decommissioning of orphan and inactive sites to provide the sector with jobs during this prolonged downturn. We are pleased that the Governments of Canada and Alberta have heard us and responded with this important program.”
Including these two rounds, which will open to applications on Feb. 12, $800 million in SRP grants have been made available to eligible applicants since launching in May 2020. In total, the program is expected to generate almost 5,300 direct jobs and lead to indirect employment – and economic benefits – across the province.
The Alberta government continues to work with an Industry Advisory Committee and an Indigenous Roundtable to help make continuous improvements to the program and its processes.
Alberta’s Recovery Plan is a bold, ambitious long-term strategy to build, diversify, and create tens of thousands of jobs now. By building schools, roads and other core infrastructure we are benefiting our communities. By diversifying our economy and attracting investment with Canada’s most competitive tax environment, we are putting Alberta on a path for a generation of growth.
Quick facts
- Through the Site Rehabilitation Program (SRP), launched in May 2020, the Alberta government is directing up to $1 billion of federal oil and gas COVID-19 economic stimulus over two years to get Albertans back to work by speeding up well, pipeline and site closure efforts in the energy sector.
- As of Feb. 12, $310.3 million of grant funding has been allocated to 633 Alberta-based companies for periods 1 through 4 of the program.
- Applications for grant periods 5 and 6 will remain open until March 31, 2022.
- During period 6, Indigenous communities will be provided a community-specific allocation.
- Contractors have until Dec. 31, 2022, to complete their work through the program.
- Remaining grant periods for the balance of the $1-billion funding commitment will be announced in the coming months.
Premier Danielle Smith, Minister of Finance Nate Horner, and Minister of Education Demetrios Nicolaides issued the following statement.
“Yesterday, the Provincial Bargaining and Compensation Office wrote to the Alberta Teachers’ Association (ATA) and formally requested an agreement to enter an enhanced mediation process.
“This process would have ensured that students returned to the classrooms on Monday, and that teachers returned to work.
“Negotiating would have continued with the ATA, Teachers’ Employer Bargaining Association (TEBA) and a third-party mediator to propose a recommended agreement.
“We are very disappointed that the Alberta Teachers’ Association refused this offer. Teachers and students should also be disappointed.
“PBCO made this offer to the ATA because the union has not made a reasonable offer and this strike is impacting students. Alberta’s government is trying to put kids first and bring an end to this strike.
“The offer of enhanced mediation provided a clear path to ending it.
“We want the same things as the ATA: More teachers. More pay for teachers. More educational assistants. And more classrooms.
“This strike has gone on too long and we are extremely concerned about the impact it is having on students.
“We are willing to consider further options to ensure that our next generation gets the world-class education they deserve. After about three weeks, a strike of this nature would reach the threshold of causing irreparable harm to our students’ education.
“The ATA needs to do what is right for its members, and for all Alberta students.
“If it refuses to do so, we will consider further options to bring this strike to an end.”
Diploma exam update
November diploma exams will be optional for students.
With instructional time in schools disrupted due to the teacher strike, the November 2025 diploma exams will now be optional for students. Students who wish to write a diploma exam may request to do so, and their school boards will accommodate the request.
The optional diploma exams apply to all schools provincewide. These exams will still take place on the currently scheduled dates.
Students who choose not to write the November diploma exams can still complete their courses and graduate on time. Their final grade will be based entirely on the school-awarded mark provided by their teacher.
Choosing not to write the November diploma exams will not affect a student’s ability to apply to, be accepted by, or attend post-secondary institutions after graduation.
No changes have been made to the January and June diplomas and provincial achievement tests.
Quick facts
- Students are automatically exempted from writing the November diploma exams but can request to write them.
- School boards must allow the student to write the diploma exam if requested.
From the Fraser Institute
By Tegan Hill and Austin Thompson
Next week, voters across Alberta will go to the polls to elect their local governments. Of course, while the issues vary depending on the city, town or district, all municipal governments spend taxpayer money.
And according to a recent study, Grande Prairie County and Red Deer County were among Alberta’s highest-spending municipalities (on a per-person basis) in 2023 (the latest year of comparable data). Kara Westerlund, president of the Rural Municipalities of Alberta, said that’s no surprise—arguing that it’s expensive to serve a small number of residents spread over large areas.
That challenge is real. In rural areas, fewer people share the cost of roads, parks and emergency services. But high spending isn’t inevitable. Some rural municipalities managed to spend far less, demonstrating that local choices about what services to provide, and how to deliver them, matter.
Consider the contrast in spending levels among rural counties. In 2023, Grande Prairie County and Red Deer County spent $5,413 and $4,619 per person, respectively. Foothills County, by comparison, spent just $2,570 per person. All three counties have relatively low population densities (fewer than seven residents per square kilometre) yet their per-person spending varies widely. (In case you’re wondering, Calgary spent $3,144 and Edmonton spent $3,241.)
Some of that variation reflects differences in the cost of similar services. For example, all three counties provide fire protection but in 2023 this service cost $56.95 per person in Grande Prairie County, $38.51 in Red Deer County and $10.32 in Foothills County. Other spending differences reflect not just how much is spent, but whether a service is offered at all. For instance, in 2023 Grande Prairie County recorded $46,283 in daycare spending, while Red Deer County and Foothills County had none.
Put simply, population density alone simply doesn’t explain why some municipalities spend more than others. Much depends on the choices municipal governments make and how efficiently they deliver services.
Westerlund also dismissed comparisons showing that some counties spend more per person than nearby towns and cities, calling them “apples to oranges.” It’s true that rural municipalities and cities differ—but that doesn’t make comparisons meaningless. After all, whether apples are a good deal depends on the price of other fruit, and a savvy shopper might switch to oranges if they offer better value. In the same way, comparing municipal spending—across all types of communities—helps Albertans judge whether they get good value for their tax dollars.
Every municipality offers a different mix of services and those choices come with different price tags. Consider three nearby municipalities: in 2023, Rockyview County spent $3,419 per person, Calgary spent $3,144 and Airdrie spent $2,187. These differences reflect real trade-offs in the scope, quality and cost of local services. Albertans should decide for themselves which mix of local services best suits their needs—but they can’t do that without clear data on what those services actually cost.
A big municipal tax bill isn’t an inevitable consequence of rural living. How much gets spent in each Alberta municipality depends greatly on the choices made by the mayors, reeves and councillors Albertans will elect next week. And for Albertans to determine whether or not they get good value for their local tax dollars, they must know how much their municipality is spending.
Tegan Hill
Director, Alberta Policy, Fraser Institute
Austin Thompson
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