Alberta
Hydro-Québec takes partnerships, environmental measures and sharing of wealth to new levels
The Canadian Energy Compendium is an annual Energy Council of Canada initiative which provides opportunity for cross-sectoral collaboration on a topic of shared interest across the Canadian energy sector, produced with the support of Canada’s national energy associations and Energy Council of Canada’s members. The stories contributed to the 2019 edition, Indigenous Energy Across Canada, highlight current conversations celebrating Canada’s dynamic energy sector and encouraging its continuous improvement.
Thanks to Todayville for helping us bring our members’ stories of collaboration and innovation to the public.
Click to read a Foreward from JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President & CEO, Canadian Council for Aboriginal Business
JP Gladu, Chief Development and Relations Officer, Steel
River Group; Former President & CEO, Canadian Council for Aboriginal Business
THE THIRD PHASE OF JAMES BAY DEVELOPMENT: TAKING PARTNERSHIPS, ENVIRONMENTAL MEASURES AND SHARING OF WEALTH TO NEW LEVELS
This article, submitted by Hydro-Québec, will focus on the development of the third phase of the James Bay complex, namely the generating stations namely the Eastmain-1 and Eastmain-1A/Sarcelle/Rupert project. Emphasis will be placed on the development of a new relationship with the Cree that led to an improved project development model.
The Eastmain Complex, the most recent of the James Bay hydroelectric development: Taking partnerships, environmental measures and sharing of wealth to new levels.
When the initial phases of hydropower development in the Baie-James region of Québec was launched in the 1970s, there was no law on the environment, no environmental ministries and no environmental impact assessment process. So consulting affected communities wasn’t on anyone’s agenda and wasn’t yet part of Hydro-Québec’s approach. In the new millennium, with a new phase of development in this region, close-knit partnerships with the Cree Nation have become the cornerstone of project development throughout Québec.
Nadoshtin and Boumhounan agreements paved the way to new developments in Baie-James in the 2000s
The Nadoshtin agreement (2002) between the Crees and Hydro-Québec opened up the possibility of building and operating the Eastmain-1 hydropower project, while the Boumhounan agreement (2002) provided a framework for the Eastmain 1- A/Sarcelle/Rupert project. The key to success for the Eastmain projects was partially diverting the Rupert River’s flow northward.
But Hydro-Québec’s commercial interest in this new project had to be balanced by clear and extensive measures to preserve the surrounding environment and respect host Cree Nation and Cree communities.
In the framework of the Eastmain-1 project, Hydro-Québec made a number of commitments with a view to
- reduce the project’s impacts on the environment
- protect the Cree way of life and encourage partnerships with the Cree communities
- encourage the awarding of contracts to Cree businesses
- promote the training and hiring of Cree workers.
- built local capacity
“…The company wanted to do more than minimize environmental impact; Hydro-Québec wanted community members to see positive gains from the Eastmain developments…”
From the design stage, which was carried out in concert with the Cree, the Eastmain 1-A/Sarcelle/Rupert project incorporated many environmental protection measures, reflecting the Cree traditional knowledge of the community members they consulted. The Cree of Québec were involved in all stages of the project, ensuring they had a voice in how their land would be impacted.
Photo courtesy Hydro-Québec. Yellow sturgeon are raised in a fish hatchery and released into their natural habitat in mid-September, when they have reached a certain maturity. Cree tallymen assist in releasing the fish into the Rupert River in the Baie-James region.
With input from Cree community members, Hydro-Québec devised a combination of dikes and canals to improve water flow, ensuring that the project, which diverts 71% of the river’s flow, flooded only a minimal land area. They also incorporated a substantial ecological in-stream flow and a series of weirs in the river to protect fish habitats, biological diversity, preserve the landscape, and maintain navigation and other activities in the area.
Furthermore, Hydro-Québec signed an unprecedented water management agreement with the Cree to ensure that the modulation of the ecological in-stream flow was managed in a cooperative manner.
Economic spinoffs
In addition to helping preserve the local environment, Hydro-Québec was committed to bringing growth opportunities to the Cree of Québec. The company wanted to do more than minimize environmental impact; Hydro-Québec wanted community members to see positive gains from the Eastmain developments.
Under the Boumhounan Agreement, an extensive participation program built around information and consultation with Cree stakeholders was put in place. It also made funds available for the Cree to finance fisheries, capacity building and traditional activities projects.
When the Eastmain 1A/Rupert diversion project was completed in 2013, the Cree and Hydro-Québec signed the Reappropriation Agreement, giving Cree land users the necessary support to maintain their traditional activities as long as the Rupert River diversion is in operation.
Post-project consultations: ensuring that measures were effective
The COMEX, a joint committee composed of 3 members appointed by the Government Quebec and 2 members appointed by the Cree Nation government, organized consultations with Cree communities to hear their views on the effectiveness of environmental and social mitigation measures put in place for the Eastmain 1A/Rupert diversion project. Approximately 200 members of the Cree Nation from six communities participated in the consultations organized in November 2012.
Photo courtesy Hydro-Québec. Between 2002 and 2005, prior to the impoundment of the Eastmain-1 reservoir, 50 archeologists and Cree workers undertook archeological digs. They discovered 158 sites and their work shows that the Baie-James territory has been occupied by these populations for the last 5,000 years.
The major findings of the COMEX were as follows:
- […]”the Committee is convinced that the Eastmain-1-A and Sarcelle Powerhouses and Rupert Diversion Project will have contributed to greater understanding between all the parties concerned, to greater Cree involvement in the development of the territory, and perhaps to empowering them to achieve their long- term economic and community development goals.”
- “Compared to previous projects carried out in the territory, the Eastmain-1- A/Sarcelle/Rupert project included more adequate and an unprecedented number of mitigation and compensation measures, for both environmental and social impacts. Many of these measures are aimed at helping Cree land users reclaim the territory. A new approach was developed and the Crees have benefited from the partnerships built with the proponent, thereby forging a new relationship.”
- “Hydro-Québec was proactive, exceeding the requirements of the certificate of authorization in an effort to minimize the project’s impacts and ensure greater Cree involvement in environmental and social follow-up activities.”
- “Hydro-Québec went to great lengths to ensure that Aboriginal communities derive benefit from the project.”
A new project development model
The Eastmain Complex – the most recent phase of development in Baie-James – added a potential energy output of 8.7 TWh per year, enough to power more than 500,000 Québec homes. The new relationships that Hydro-Québec and the Cree Nation developed over that period have become models for future energy resource development throughout Québec. With considerable untapped hydropower potential and a strong wind potential in Québec, Hydro-Québec’s new and improved project development model holds great promise for the future of clean energy in northeast North America.
Jacob Irving, President of Energy Council of Canada
The Canadian Energy Compendium is an annual initiative by the Energy Council of Canada to provide an opportunity for cross-sectoral collaboration and discussion on current topics in Canada’s energy sector. The 2020 Canadian Energy Compendium: Innovations in Energy Efficiency is due to be released November 2020.
Click to read comments about this series from Jacob Irving, President of the Energy Council of Canada.
From the Fraser Institute
By Tegan Hill and Nathaniel Li
Albertans contributed $53.6 billion more to CPP then retirees in Alberta received from it from 1981 to 2022
Albertans’ net contribution to the Canada Pension Plan —meaning the amount Albertans paid into the program over and above what retirees in Alberta
received in CPP payments—was more than six times as much as any other province at $53.6 billion from 1981 to 2022, finds a new report published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“Albertan workers have been helping to fund the retirement of Canadians from coast to coast for decades, and Canadians ought to know that without Alberta, the Canada Pension Plan would look much different,” said Tegan Hill, director of Alberta policy at the Fraser Institute and co-author of Understanding Alberta’s Role in National Programs, Including the Canada Pension Plan.
From 1981 to 2022, Alberta workers contributed 14.4 per cent (on average) of the total CPP premiums paid—Canada’s compulsory, government- operated retirement pension plan—while retirees in the province received only 10.0 per cent of the payments. Alberta’s net contribution over that period was $53.6 billion.
Crucially, only residents in two provinces—Alberta and British Columbia—paid more into the CPP than retirees in those provinces received in benefits, and Alberta’s contribution was six times greater than BC’s.
The reason Albertans have paid such an outsized contribution to federal and national programs, including the CPP, in recent years is because of the province’s relatively high rates of employment, higher average incomes, and younger population.
As such, if Alberta withdrew from the CPP, Alberta workers could expect to receive the same retirement benefits but at a lower cost (i.e. lower payroll tax) than other Canadians, while the payroll tax would likely have to increase for the rest of the country (excluding Quebec) to maintain the same benefits.
“Given current demographic projections, immigration patterns, and Alberta’s long history of leading the provinces in economic growth, Albertan workers will likely continue to pay more into it than Albertan retirees get back from it,” Hill said.
Understanding Alberta’s Role in National Programs, Including the Canada Pension Plan
- Understanding Alberta’s role in national income transfers and other important programs is crucial to informing the broader debate around Alberta’s possible withdrawal from the Canada Pension Plan (CPP).
- Due to Alberta’s relatively high rates of employment, higher average incomes, and younger population, Albertans contribute significantly more to federal revenues than they receive back in federal spending.
- From 1981 to 2022, Alberta workers contributed 14.4 percent (on average) of the total CPP premiums paid while retirees in the province received only 10.0 percent of the payments. Albertans net contribution was $53.6 billion over the period—approximately six times greater than British Columbia’s net contribution (the only other net contributor).
- Given current demographic projections, immigration patterns, and Alberta’s long history of leading the provinces in economic growth and income levels, Alberta’s central role in funding national programs is unlikely to change in the foreseeable future.
- Due to Albertans’ disproportionate net contribution to the CPP, the current base CPP contribution rate would likely have to increase to remain sustainable if Alberta withdrew from the plan. Similarly, Alberta’s stand-alone rate would be lower than the current CPP rate.
Tegan Hill
Director, Alberta Policy, Fraser Institute
Nathaniel Li
Senior Economist, Fraser Institute
Alberta
Alberta Institute urging Premier Smith to follow Saskatchewan and drop Industrial Carbon Tax
From the Alberta Institute
Axe Alberta’s Industrial Carbon Tax
Aside from tariffs, carbon taxes have been the key topic of the election campaign so far, with Mark Carney announcing that the Liberals would copy the Conservatives’ long-standing policy to axe the tax – but with a big caveat.
You see, it’s misleading to talk about the carbon tax as if it were a single policy.
In fact, that’s what the Liberals would like you to think because it helps them hide all the other carbon taxes they’ve forced on Canadians and on the Provinces.
Broadly speaking, there are actually four types of carbon taxes in place in Canada:
- A federal consumer carbon tax
- A federal industrial carbon tax
- Various provincial consumer carbon taxes
- Various provincial industrial carbon taxes
Alberta was actually the first jurisdiction anywhere in North America to introduce a carbon tax in 2007, when Premier Ed Stelmach introduced a provincial industrial carbon tax.
Then, as we all know, the Alberta NDP introduced a provincial consumer carbon tax in 2017.
The provincial consumer carbon tax was short-lived, as the UCP repealed it in 2019.
But, unfortunately, the UCP failed to repeal the provincial industrial carbon tax at the same time.
Worse, by then, the federal Liberals had introduced a federal consumer carbon tax and a federal industrial carbon tax as well!
Flash forward to 2025, and the political calculus has changed dramatically.
Mark Carney might only be promising to get rid of the federal consumer carbon tax, but Pierre Poilievre is promising to get rid of both the federal consumer carbon tax and the federal industrial carbon tax.
This is a clear opportunity, and yesterday, Scott Moe jumped on it.
He announced that Saskatchewan will also be repealing its provincial industrial carbon tax.
Saskatchewan never had a provincial consumer carbon tax, which means that, within just a few weeks, people in Saskatchewan could be paying ZERO carbon tax of ANY kind.
Alberta needs to follow Saskatchewan’s lead.
The Alberta government should immediately repeal Alberta’s provincial industrial carbon tax.
There’s no excuse for our provincial government to continue burdening our industries with unnecessary costs that hurt competitiveness and deter investment.
These taxes make it harder for businesses to thrive, grow, and create jobs, especially when other provinces are taking action to eliminate similar policies.
Premier Danielle Smith must act now and eliminate the provincial industrial carbon tax in Alberta.
If you agree, please sign our petition calling on the Alberta government to Axe Alberta’s Industrial Carbon Tax today:
After you’ve signed, please send the petition to your friends, family, and wider network, so that every Albertan can have their voice heard!
– The Alberta Institute Team
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