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Alberta

OPINION: Marlin Schmidt on water allocation in the Bow River Basin

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Marlin Schmidt, MLA for Edmonton-Gold Bar, Environment and Parks Critic for Alberta’s Official NDP Opposition

The wise allocation of water in Alberta is essential to the sustainable development of an economy that works for all Albertans while preserving our precious natural heritage.

In 2007, Alberta recognized that limits for water allocation in the Bow River basin had been exceeded. No more new allocations of water have been allowed and Albertans have carefully managed the water resources in the basin since then. Fortress Mountain Holdings’ recent application to haul away and sell more than half of the 98 million litres a year it currently has the license to use threatens the careful management of water in the Bow River basin.

The original operators of Fortress Mountain were granted a license in 1968 to use 98 million litres of water per year from a tributary to Galatea Creek to prepare food and provide drinking water to skiers at the resort. The current owners claim that more than half of that allocation is not needed for those purposes and now want permission from Alberta Environment and Parks to haul 50 million litres of water per year away and sell it to the highest bidder. Allowing current license holders to subsidize their business operations with the sale of the unused portions of their licenses moves Alberta further away from the goal of sustainable development and would put the future of our river ecosystems at great risk.

Much has changed in the Bow River basin since 1968 – the demands on the river ecosystem have increased significantly with the twin pressures of population growth and climate change. Re-allocating 50 million litres of water would increase that pressure in a very ecologically sensitive area. It would also set a dangerous precedent for future allocations of water resources. If this application is approved, there’s nothing that will prevent future water license holders from selling their unused water allocations, and while the license holders may profit, our watersheds will pay the price.

Additionally, we must remember that this water allocation would be given priority over all other allocations granted after 1968 under Alberta’s “first-in-time first-in-right water” allocation system. This means that Fortress Mountain would receive priority for this use over a whole host of other users during times of extreme water shortage. Is selling bottled water really a higher priority for the people in the Bow River basin ahead of so many agricultural and municipal water uses? Most Albertans who have talked to me about this issue don’t think so.

Revenues from the sale of the water would apparently fund the goals that the owners have for the development of the resort, including environmentally sound development, living wages for staff, charitable and community activities, as well as reclamation of the site. I support those stated goals, but it should be the skiers who use the resort who pay for those activities. The other Bow River water users and the ecosystem should not be asked to pay for others’ enjoyment of a ski facility.

Alberta Environment and Parks must live up to its mandate of supporting sustainable development now and for future generations. Rejecting Fortress Mountain Holding’s water application would be a step in the right direction.

 

Marlin Schmidt

Environment & Parks Critic

Alberta’s Official NDP Opposition

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Alberta

Low oil prices could have big consequences for Alberta’s finances

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From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

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Alberta

Governments in Alberta should spur homebuilding amid population explosion

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From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in CalgaryEdmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Austin Thompson

Senior Policy Analyst, Fraser Institute
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