Alberta
Premier Smith introduces Alberta Sovereignty Act to battle Ottawa in net-zero battle
“We are left with no choice but to create a shield to protect Albertans from Ottawa’s dangerous and unconstitutional electricity regulations”
Defending Alberta from brownouts, blackouts and soaring costs
Premier Danielle Smith has introduced an Alberta Sovereignty Within a United Canada Act resolution to protect Alberta from the federal government’s proposed net-zero electricity grid regulations to ensure Albertans have access to reliable and affordable power when and where they need it.
Alberta’s government will not put Albertans and their businesses at risk of freezing in the dark at -30 C due to the federal government’s proposed unaffordable, unreliable and unconstitutional Clean Electricity Regulations (CERs).
The federal government has been clear it is unwilling to align its electricity regulations with Alberta’s Emissions Reduction and Energy Development Plan as the province works to achieve carbon neutrality by 2050. Instead, the federal government has continued to indicate it will move ahead with its plan to implement unrealistic requirements for a net-zero electricity grid by 2035, regardless of the costs and risks to Albertans.
To protect Albertans from future brownouts, blackouts and soaring costs, Alberta’s government has introduced the first Alberta Sovereignty within a United Canada Act resolution. This resolution asks the legislative assembly of Alberta for approval to take strong, effective action over the coming months and years to counteract the harms and risks to Albertans posed by the federal CERs.
“We have tried to work with Ottawa to align their emissions-reduction efforts with our provincial plan to achieve a carbon-neutral power grid by 2050. Unfortunately, after months of meetings, they continue to reject this opportunity and remain committed to an absurdly unrealistic and unattainable goal of a net-zero power grid by 2035. We are left with no choice but to create a shield to protect Albertans from Ottawa’s dangerous and unconstitutional electricity regulations. They may be willing to expose Albertans to high costs, blackouts and brownouts, but we are not, and we will continue to ensure Albertans are protected from these destructive and unconstitutional federal policies.”
The CERs propose unrealistic rules with Criminal Code violations to achieve net-zero electricity by 2035. Alberta’s grid needs more baseload power from natural gas, but these regulations have created uncertainty and are driving away investment. This threatens the reliability and economic well-being of Alberta’s homes and businesses.
Alberta does not have enough applications for new natural gas power plants to provide the substantial new generation of power the province needs, primarily due to the investor uncertainty caused by the federal government’s extreme policies.
“The courts are on our side, science and logic are on our side, the Constitution is on our side – electricity generation is the jurisdiction of the provinces, not the federal government. It is our responsibility to provide safe, reliable and affordable electricity to all Albertans without interference from Ottawa. This is what we are doing and will continue to do.”
“The federal regulations will hurt grid reliability for families and businesses while sending costs soaring. Everything we have seen from Ottawa suggests they simply don’t care how these rules will hurt Albertans. We will not put families at risk of rationing power during the coldest days of the year.”
If passed, the Alberta Sovereignty Within a United Canada Act resolution will help protect Alberta’s electricity grid and ensure that homes and businesses across the province can access reliable, affordable power for decades to come.
The resolution asks Alberta’s cabinet to order all provincial entities not to recognize the constitutional validity of, enforce, nor cooperate in the implementation of the CERs in any manner, to the extent legally permissible. This order would not apply to private companies or individuals. The resolution also asks Alberta’s government to work with the Alberta Electric System Operator, Alberta Utilities Commission and others to implement various reforms to Alberta’s electrical system to ensure grid affordability and reliability.
In addition, the resolution instructs the government to work with industry, regulators and other groups to study the feasibility of establishing a provincial Crown corporation for the purpose of bringing and maintaining more reliable and affordable electricity onto the grid in the event that private generators find it too risky to do so under the CERs.
This Alberta Crown corporation would be a provincial entity and would not recognize the CERs as constitutionally valid. If needed, the Crown corporation would work with industry and other stakeholders to bring on needed electricity onto the grid, either through building new generation or purchasing existing generation assets (i.e. natural gas power plants) that private industry would otherwise not build or shut down due to the uncertainty and penalties established by the CERs. It could also be used as a means of assisting and partnering with industry to de-risk investments in nuclear power and other emerging green generation if needed.
Alberta must be prepared should the CERs lead to divestment in natural gas generation and power plants being turned off in 2035. This initiative would be an important first step towards protecting Albertans’ continued access to reliable and affordable electricity should this occur.
The resolution also urges the government to use all legal means necessary to oppose the federal electricity regulation, including legal challenges.
Quick facts
- According to the Constitution of Canada, legislating and regulating the development of electricity explicitly falls within the jurisdiction of the province (Section 92A (1) (c)).
- Alberta has reduced electricity emissions by 53 per cent since 2005.
- Analysis by the Alberta Electric System Operator determined that Alberta would face disproportionate risk and costs, compared with other provinces, as a result of the federal electricity regulations.
- Alberta’s grid had seven alerts during colder months in 2022 and had three alerts in summer 2023, underscoring the importance of having sufficient stable baseload power sources like gas, hydro and nuclear available year-round. Alberta must continue to rely on a diverse mix of intermittent and baseload options to prevent future brownouts and blackouts and maintain a reliable grid.
- The Public Policy Forum previously indicated that the cost of the federal electricity approach could be more than $1 trillion and as high as $1.7 trillion.
Related information
Canada’s wealth is based on its success as a trading nation. Canada is blessed with immense resources spread across a vast country. It has succeeded as a small, open economy with an enviable standard of living that has been able to provide what the world needs.
Canada has been stuck in a situation where it cannot complete nation‑building projects like the Canadian Pacific Railway that was completed in 1885, or the Trans Canada Highway that was completed in the 1960s. With the uncertainty of U.S. tariffs looming over our country and province, Canada needs to take bold action to revitalize the productivity and competitiveness of its economy – going east to west and not always relying on north-south trade. There’s no better time than right now to politically de-risk these projects.
A lack of leadership from the federal government has led to the following:
- Inadequate federal funding for trade infrastructure.
- A lack of investment is stifling the infrastructure capacity we need to diversify our exports. This is despite federally commissioned reports like the 2022 report by the National Supply Chain Task Force indicating the investment need will be trillions over the next 50 years.
- Federal red tape, like the Impact Assessment Act.
- Burdensome regulation has added major costs and significant delays to projects, like the Roberts Bank Terminal 2 project, a proposed container facility at Vancouver, which spent more than a decade under federal review.
- Opaque funding programs, like the National Trade Corridors Fund (NTCF).
- Which offers a pattern of unclear criteria for decisions and lack of response. This program has not funded any provincial highway projects in Alberta, despite the many applications put forward by the Government of Alberta. In fact, we’ve gone nearly 3 years without decisions on some project applications.
- Ineffective policies that limit economic activity.
- Measures that pit environmental and economic objectives in stark opposition to one another instead of seeking innovative win-win solutions hinder Canada’s overall productivity and investment climate. One example is the moratorium on shipping crude through northern B.C. waters, which effectively ended Enbridge’s Northern Gateway proposal and has limited Alberta’s ability to ship its oil to Asian markets.
In a federal leadership vacuum, Alberta has worked to advance economic corridors across Canada. In April 2023, Alberta, Saskatchewan and Manitoba signed an agreement to collaborate on joint infrastructure networks meant to boost trade and economic growth across the Prairies. Alberta also signed a similar economic corridor agreement with the Northwest Territories in July 2024. Additionally, Alberta would like to see an agreement among all 7 western provinces and territories, and eventually the entire country, to collaborate on economic corridors.
Through our collaboration with neighbouring jurisdictions, we will spur the development of economic corridors by reducing regulatory delays and attracting investment. We recognize the importance of working with Indigenous communities on the development of major infrastructure projects, which will be key to our success in these endeavours.
However, provinces and territories cannot do this alone. The federal government must play its part to advance our country’s economic corridors that we need from coast to coast to coast to support our economic future. It is time for immediate action.
Alberta recommends the federal government take the following steps to strengthen Canada’s economic corridors and supply chains by:
- Creating an Economic Corridor Agency to identify and maintain economic corridors across provincial boundaries, with meaningful consultation with both Indigenous groups and industry.
- Increasing federal funding for trade-enabling infrastructure, such as roads, rail, ports, in-land ports, airports and more.
- Streamlining regulations regarding trade-related infrastructure and interprovincial trade, especially within economic corridors. This would include repealing or amending the Impact Assessment Act and other legislation to remove the uncertainty and ensure regulatory provisions are proportionate to the specific risk of the project.
- Adjusting the policy levers that that support productivity and competitiveness. This would include revisiting how the federal government supports airports, especially in the less-populated regions of Canada.
To move forward expeditiously on the items above, I propose the establishment of a federal/provincial/territorial working group. This working group would be tasked with creating a common position on addressing the economic threats facing Canada, and the need for mitigating trade and trade-enabling infrastructure. The group should identify appropriate governance to ensure these items are presented in a timely fashion by relative priority and urgency.
Alberta will continue to be proactive and tackle trade issues within its own jurisdiction. From collaborative memorandums of understanding with the Prairies and the North, to reducing interprovincial trade barriers, to fostering innovative partnerships with Indigenous groups, Alberta is working within its jurisdiction, much like its provincial and territorial colleagues.
We ask the federal government to join us in a new approach to infrastructure development that ensures Canada is productive and competitive for generations to come and generates the wealth that ensures our quality of life is second to none.
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Devin Dreeshen
Devin Dreeshen was sworn in as Minister of Transportation and Economic Corridors on October 24, 2022.
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