Tag Archives: Carbon Capture and Storage

Rachel Notley Brian Mason David Eggen Deron Bilous NDP MLA Alberta

NDP needs to explain why they changed their mind on Carbon Capture and Storage

“The Tories have bet $2 billion taxpayer dollars and our oil and gas industry’s sustainability on CCS. There’s no scientific consensus that the technology is safe in the long term. Any report of a failed CCS project should have the Tories thinking twice about their lopsided reliance on CCS.” – Rachel Notley, NDP MLA Edmonton-Strathcona (January 11, 2011)

“Ed Stelmach has no trouble handing out billions of real tax dollars for carbon-capture to his friends in the oil and gas sector. But when it comes to a plan that could create jobs and improve our environment, the money’s just not there.” Brian Mason, NDP MLA Edmonton-Highlands-Norwood (June 22, 2010)

I want to remind the House that this government has chosen to spend $1.3 billion on an unproven, unfounded technology, carbon capture and storage, and on other priorities of theirs. There’s money for them. Yet when it comes to supporting Alberta families and Alberta’s hardest workers, this government couldn’t be bothered to support or to find the money. – Deron Bilous, MLA Edmonton-Beverly-Clareview (December 3, 2013)

This whole idea of investing, giving industry so much money for carbon capture and storage – right? – is an absolute waste of money. We know full well that this is just another way for enhanced oil recovery. It’s another way for large energy corporations to receive public funding, and there’s very little evidence that this very expensive public investment will pay any significant returns either to our environment or to the original plant to which it was intended. – David Eggen, MLA Edmonton-Calder (April 17, 2014).

Yesterday’s statement by Energy Minister Marg McCuaig-Boyd that Alberta’s new government would honour the contracts signed with Shell for the Quest project and Enhanced Energy for the Alberta Carbon Trunk Line carbon capture and storage projects is a significant about face for the New Democratic Party government. The two projects are expected to begin operating in 2016.

In opposition, NDP MLAs were harshly critical of the governing Progressive Conservatives investments in the private energy projects (see the quotes listed above).

During the recent election, the NDP platform pledged to end the carbon capture contracts during the recent election campaign, proposing to reinvest hundreds of millions of dollars into public transit programs.

We will end the PCs’ costly and ineffective Carbon Capture and Storage experiment and reinvest the 2015/16 component of this project into construction of public transit, which will help reduce families’ transportation costs and reduce greenhouse gases and other air pollutants. – NDP 2015 election platform, page 18.

Originally marketed as part of the provincial government’s 2008 climate change plan, the Auditor General reported in July 2014 that “the total emissions reductions are expected to be less than 10% of what was originally anticipated.” The technology is unproven and unlikely to actually reduce carbon emissions in Alberta.

Ms. McCuaig-Boyd said in a statement that no further funding for carbon capture and storage is planned beyond the existing projects, but regardless of future plans, the NDP needs to better communicate why it is not fulfilling their promise to cancel the contracts.

If the financial penalties are too steep or investments already made are too large to justify cancelling the contracts, then Ms. McCuaig-Boyd should explain to Albertans how large these penalties would be or what the cost of withdrawing from the projects would be.

If the old Progressive Conservative government negotiated contracts for carbon capture and storage projects that were not in the best interest of Albertans, then the new government should say so.

Ghosts of the Progressive Conservative Party's 44-year long reign continue to haunt Alberta politics.

7 Conservatives scandals that still haunt Alberta politics

After forty-four years of Progressive Conservative government in Alberta, it still feels surreal to believe that another party has been elected into government. Two and a half months after the NDP victory, Premier Rachel Notley is putting her stamp on Alberta politics. But Alberta’s new government is left to deal with some of the more unhelpful legacies created by the previous government. Here is a look at a few of the Progressive Conservative scandals that continue to haunt Alberta politics.

Funeral Homes

CBC reports that it has obtained documents showing how the Alberta Funeral Service Association pressured former minister Jonathan Denis and the Department of Justice to reopen a contract and abandon earlier efforts to control spending. CBC reports the contract was reopened and revised against the advice of a government lawyer and chief medical examiner Dr. Anny Sauvageau.

Kananaskis Golf Course

Alberta’s auditor general is reviewing a controversial contract between the government and a private company operating a publicly-owned Kananaskis golf course. During this year’s election, NDP MLA Brian Mason asked the auditor general to investigate why the government paid $9.3 million to the company, which is known to have connections to the PC Party. The golf course has been closed since the 2013 floods in southern Alberta.

Wildrose MLA Derek Fildebrandt, who chairs the Standing Committee on Public Accounts, has said he hopes to compel former PC cabinet ministers, including Diana McQueen, to appear at a committee meeting. Critics have criticized the 1983 contract as a “sweetheart deal.”

Airplane sale

The rushed sale of the government’s fleet of airplanes led to a $5 million loss for Albertans. This contradicts claims by former PC premier Jim Prentice that the sale of the planes netted $6.1 million for the government. The planes were sold after Ms. Redford and PC MLAs faced harsh criticism for alleged misuse of the government air fleet for personal and partisan activities.

Public Sector Pensions

Alberta public sector pension liabilities dropped by more than $400 million last year, suggesting evidence that changes planned to the funds by former premier Alison Redford and finance minister Doug Horner were not necessary. The attacks on public sector pensions alienated thousands of public sector workers in Alberta, many who voted for Ms. Redford’s PC Party in the 2012 election. The PC government’s planned changes to the pension plan were scrapped after Ms. Redford resigned as premier in early 2014.

Cowboy welfare

The auditor general reported that the government has been forgoing an estimated $25 million in annual revenue by not limiting surface rights compensation paid by the energy companies to holders of provincial grazing leases. The report states the province does not track which leases have oil and gas activity on them or how much was paid to the leaseholders for access to the natural resources.

“Current legislation allows an unquantified amount of personal financial benefit to some leaseholders over and above the benefits of grazing livestock on public land,” the report says.

Previous attempts to change the law governing the leases met fierce opposition from rural leaseholders, including a posse of sixty cowboys on horseback who tried to block premier Ralph Klein from visiting the Royal Tyrrell Museum in 1999.

Carbon Capture and Storage

The government’s large investments in carbon capture and storage development has not paid off, according to a July 2014 report from the auditor general. Marketed as a key piece of the PC government’s climate change plan, the auditor general reported that “with only two carbon capture and storage projects planned, the total emissions reductions are expected to be less than 10% of what was originally anticipated.”

The NDP pledged to end the carbon capture contracts and instead reinvest hundreds of millions of dollars into public transit programs, but high cost of cancelling binding contracts with private sector corporations developing the projects could solidify this PC legacy.

Heritage Fund

When premier Peter Lougheed created the Heritage Savings Trust Fund in 1976, the government dedicated 30% of annual revenues into the rainy day fund “to save for the future, to strengthen or diversify the economy, and to improve the quality of life of Albertans.” The PC government halted non-renewable resource transfers to the fund in 1987, when it was worth $12.7 billion. Investments into the fund were only started again in 2004.

Despite Alberta’s immense natural wealth, the fund is now only worth an estimated $17.4 billion.