Tag Archives: Carbon Levy

Construction of the expansion of the Kinder Morgan Trans Mountain Pipeline is expected to start in 2017.

The Great Constitutional Pipeline War of the Rockies

Fresh from the Alberta NDP’s victory over Saskatchewan in the Fake Trade War on the Prairies, the ongoing political fight over the expansion of the existing Kinder Morgan TransMountain Pipeline from Edmonton to Burnaby is heating up.

Rachel Notley Alberta NDP leader

Rachel Notley

In the British Columbia NDP government’s most recent move to block the oil pipeline, Environment and Climate Change Strategy Minister George Heyman announced new rules today that would limit “the increase of diluted bitumen transportation until the behaviour of spilled bitumen can be better understood and there is certainty regarding the ability to adequately mitigate spills.”

A key section of the Confidence and Supply Agreement between the NDP and 3-MLA Green caucus that props up BC Premier John Horgan‘s minority government states: Immediately employ every tool available to the new government to stop the expansion of the Kinder Morgan pipeline, the seven-fold increase in tanker traffic on our coast, and the transportation of raw bitumen through our province.

“Having run out of tools in the toolbox, the Government of British Columbia is now grasping at straws,” Alberta Premier Rachel Notley read in a statement.

While the pipeline was always going to be politically challenging, with unflinching support in Alberta and unwavering opposition in British Columbia, the Notley government has poured a considerable amount of political capital into the success of pipelines. In a gamble, they even used their much lauded Climate Leadership Plan and carbon levy program as a key part of their sales pitch for oil pipeline expansion.

George Heyman BC Environment Minister Pipelines

George Heyman

But opposition in BC remains strong.

“The B.C. government has every right to consult on whatever it pleases with its citizens,” Notley said. “It does not have the right to rewrite our Constitution and assume powers for itself that it does not have. If it did, our Confederation would be meaningless.”

I am not a constitutional expert, so I cannot speak to Notley’s claims, but by questioning the BC government’s decision on constitutional grounds, she is pressuring Prime Minister Justin Trudeau to abandon his delicate balancing act of trying to appease his pro-pipeline ally (Notley), anti-pipeline ally (Horgan), and the 18 Liberal Members of Parliament who call BC home.

Trudeau will be hosting a town hall meeting at MacEwan University in Edmonton on Thursday, Feb. 1. Maybe someone can ask him a question about this?

The route of the Kinder Morgan Trans Mountain Pipeline from Edmonton to Burnaby.

The route of the Kinder Morgan Trans Mountain Pipeline from Edmonton to Burnaby.

Peter Lougheed Alberta Premier Now

Week 1 Update from the Calgary-Lougheed by-election

Photo: Former Alberta Premier Peter Lougheed. The Calgary-Lougheed electoral district is named after Lougheed.

It has been one week since the Calgary-Lougheed by-election was called. The by-election is being held on Dec. 14, 2017, but voters in this district also have the option of voting in advance polls on Dec. 6, 7, 8 and 9, 2017.

This is the third by-election since the general election of 2017 that swept the New Democratic Party into government. And like the previous two by-elections, this one will be held in a district where voters elected a Progressive Conservative MLA in 2015.

Four candidates have so far been nominated to stand in the by-election:

Phillip van der Merwe, New Democratic Party

Premier Rachel Notley was on-hand with Alberta NDP candidate Phillip van der Merwe at tonight’s opening of the party’s campaign office in Calgary-Lougheed. Having just returned from speaking engagements in Vancouver and Toronto, where she pitched the benefits of oil pipelines, Notley returned to Calgary days after the Conference Board of Canada projected Alberta’s economy could grow by 6.7 percent in 2018.

But do not expect the NDP to spend much time focusing on economic issues. They are doing their utmost to make sure Jason Kenney’s opposition to the recent Gay-Straight Alliance law and his support from anti-abortion groups remains a topic of discussion.

This will be a tough election for the NDP, as this area of southwest Calgary is considered bedrock conservative territory. In the recent Calgary mayoral election, voters in this part of Calgary supported conservative Bill Smith over progressive Naheed Nenshi.

Jason Kenney, United Conservative Party

UCP candidate Jason Kenney drew a big crowd of supporters when he opened his campaign office on Nov 19, 2017. The recently elected UCP leader is almost universally considered the favourite to win this by-election.

Kenney and his supporters have started to claim that Albertans’ home heating bills will increase by 75 percent because of the province’s Carbon Levy. Environment and Parks Minister Shannon Phillips denied Kenney’s claims, describing them as ‘patently false,’ but the UCP has capitalized on confusion about the provincial and federal carbon taxes in order to draw connections between the Notley NDP and the Trudeau Liberals.

The claims are reminiscent of Kenney’s rhetoric and photo-op from December 31, 2016, when he insinuated the same Carbon Levy would lead to a spike in automobile gas prices. That didn’t happen. With constant predictions that the sky is falling on the issue of a carbon tax and rampant truthiness on other issues, Kenney is sounding more and more like Chicken Little.

David Khan, Liberal Party

David Khan Alberta Liberal Party Leader

David Khan

Liberal Party leader David Khan announced he will stand as his party’s candidate in this by-election. The Liberals currently hold only one seat in the Legislature, Calgary-Mountain View represented by former leader and fourth-term MLA David Swann.

This will be Khan’s third election attempt since 2014 and his first since becoming leader earlier this year.

He first ran as his party’s candidate the 2014 Calgary-West by-election, where he placed 3rd with 8.5 percent of the vote. In the 2015 general election he ran in Calgary-Buffalo, where he placed 3rd with 24.7 percent of the vote (the constituency was represented by Kent Hehr from 2008 to 2015).

The Liberals will host an “Ugly Christmas Sweater & Karaoke Party” fundraiser at Khan’s campaign office on December 9, 2017.

Romy Tittel, Green Party

Romy Tittel Alberta Green Party Leader

Romy Tittel

Recently elected Green Party leader Romy Tittel will run as her party’s candidate in the by-election. An online statement said she plans to champion “Doughnut Economics” based on Kate Raworth’s 21st century vision for future economic health and prosperity.

Tittel was selected as the party’s leader at a November 5, 2017 meeting in Red Deer. She previously ran for the federal Green Party in the 2015 general election in Foothills, where she placed 4th with 3.25 percent of the vote.

No candidate, Alberta Party

The Alberta Party announced this week that it will not be running a candidate in the by-election. Party leader Greg Clark, who is stepping down as party leader next year, called the results of the by-election “a foregone conclusion,” suggesting that the party would have no chance of defeating Kenney.

This is the second consecutive by-election in which the party’s has declined to run a candidate. In a Feb. 29, 2016 media release about the Calgary-Greenway by-election, party leader Greg Clark said “Running in this byelection is not the best use of our resources as we build towards 2019.”

Sitting out this by-election presents a missed opportunity for the Alberta Party to debut itself following its revival last weekend in Red Deer. But having their candidate get clobbered by Kenney would take a bite out of their narrative that they are a growing home for moderate conservative voters. By not running a candidate, the Alberta Party saves themselves the embarrassment of placing third, fourth or fifth in this by-election.

Premier Rachel Notley and Environment Minister Shannon Phillips release Alberta's climate change plan.

The Winter of Discontent over the Carbon Tax

Alberta’s carbon tax, lauded by economists and experts and derided by opposition conservatives, came into force on January 1, 2017.

From photo-ops at gas pumps to outright climate change denial, opposition to the carbon tax has been nothing short of hysterical over the past week.

Don MacIntyre MLA

Don MacIntyre

Don MacIntyre, Wildrose MLA for Innisfail-Sylvan Lake, sidelined his party’s attack on the carbon tax as a ‘tax on everything’ when he dove into climate change denying rhetoric during a January 2, 2017 press conference at the Legislature. “The science isn’t settled,” MacIntyre is reported to have said, despite the existence of overwhelming scientific evidence claiming otherwise.

Wildrose MLA Derek Fildebrandt marked New Year’s Eve by posting photos of himself filling up his truck and jerrycans to avoid any increase to gas prices caused by the carbon tax on January 1. It is estimated that he may have saved a few dollars, but in many locations across Alberta the price of gas actually dropped after the weekend (gas at the local station in my neighbourhood in northeast Edmonton is six cents cheaper per litre today than it was on Dec. 31).

Jason Kenney

Jason Kenney

Progressive Conservative leadership candidate Jason Kenney probably levelled the silliest criticism of the carbon tax when he tweeted on January 4 a photo of Tesla charging station in Fort Macleod, which was empty. This was apparently meant to be an argument that the four day old carbon tax was a failure.

Despite claims by opposition Wildrose and PC politicians that they would repeal the tax if elected in 2019, a federal carbon tax dictated by Ottawa would likely be imposed in its absence.

But arguments in favour of the made-in-Alberta carbon tax have been, well, confusing and technical.

Shannon Phillips

Shannon Phillips

Environment and Parks Minister Shannon Phillips’ statement that the province is “still standing” the day after the carbon tax was implemented was factually correct but probably not the statement most Albertans were waiting to hear. Phillips is one of the government’s smartest cabinet ministers, and has done a good job promoting the flagship Climate Leadership Plan, but the NDP have fallen short when it comes to easing Albertans worries about the cost of implementing the carbon tax during an economic downturn.

Economists like Trevor Tombe and Andrew Leach have penned or compiled intelligent arguments defending the carbon tax. Even executives of Canada’s largest oil and gas companies have come out in support of the carbon tax. Many of those executives stood on stage with Phillips and Premier Rachel Notley, along with environmental leaders, when the climate change plan was released in November 2015.

Justin Trudeau

Justin Trudeau

In November 2016, Prime Minister Justin Trudeau heaped praise on Notley for Alberta’s climate change plan, which includes the carbon tax, as a key reason for the approval of the Kinder Morgan Trans-Mountain pipeline expansion and the Enbridge Line 3 pipeline replacement.

But as anyone involved in politics knows, emotion and anger can sometimes trump facts, science and research. The recent presidential election south of the border confirms this.

Advertisements recently released by the Ontario government are, in my opinion, a good example of an emotional argument in favour of a climate change plan.

One of the arguments that I continue to hear is that Alberta and Canada should not implement a carbon tax because Donald Trump does not support a carbon tax. Trump also tweeted that he believes climate change is a conspiracy created by the Chinese government, so I am not confident that he is someone we should be looking to for leadership on this issue.

Donald Trump

Donald Trump

Overall public opposition to the carbon tax might start to fade in the coming months as many Albertans begin receiving their rebate cheques – around sixty percent of Alberta households will get a rebate, with full rebates for single Albertans earning $47,500 or less, and couples and families who earn $95,000 or less – but the NDP government will need to work overtime to provide clear evidence of how the carbon tax will benefit Albertans.

Of the funds collected by the carbon tax, the government says $2.3 billion will go towards rebate programs, $3.4 billion will help businesses adjust to the carbon levy, $6.2 billion will go toward energy industry diversification and job creation, $3.4 billion for large scale renewable energy and technology, and $2.2 billion for green infrastructure. As well as $645 million will be directed towards the new provincial agency Energy Efficiency Alberta and $195 million to assist coal communities, which will be impacted by the phase out of coal-fired power plants by 2030.

The NDP also cut the small business tax from three percent to two percent, a change that came into effect as the carbon tax was implemented.

Taxes in Alberta remain low, some of the lowest in Canada. Investing in measures that could create a cleaner environment for the next generations is not a burden, it is a responsibility. The carbon tax is a sensible policy, but it could be an uphill battle to convince Albertans to embrace it.