Tag Archives: Enbridge Line 3 Pipeline

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.

Notley’s Climate Change plan earns Trudeau’s Pipeline approval

Prime Minister Justin Trudeau announced today the fate of three pipelines that have dominated political debate in Alberta over the past six years. Yes to Kinder Morgan Trans-Mountain Pipeline. No to the controversial Enbridge Northern Gateway Pipeline. Yes to the Enbridge Line 3 Pipeline replacement. Plus, a ban of tanker traffic along British Columbia’s North Coast.

Justin Trudeau

Justin Trudeau

Mr. Trudeau heaped praise on Premier Rachel Notley for Alberta’s flagship climate change policy, which includes a price on carbon, the elimination coal-fired power plants, a cap on carbon emissions, and significant investments in renewables, as a central reason for the pipeline approval.

Alberta’s Climate Plan is a vital contributor to our national strategy,” Mr. Trudeau said. “This would not be possible without the leadership of the Notley government,” he said.

Mr. Trudeau basically said everything but “Hey Alberta, Rachel Notley is the reason you got a pipeline.”

It has been a long, dark night for the people of Alberta… Today we are finally seeing some morning light,” Ms. Notley said in a statement released from Ottawa this afternoon. That morning light could help drive up the Alberta NDP’s support in the polls, which has dwindled over their first 18 months in office.

Rachel Notley Edmonton MLA Strathcona NDP

Rachel Notley

The pipeline approval is a big political win for Ms. Notley’s government as it deals with an economic downturn caused by the low international price of oil. Her conservative critics have attacked her for not being a more vocal cheerleader for pipelines, but it appears a strategy of quiet climate change diplomacy with Ottawa may have been more effective.

It is odd that after years of hearing pro-pipeline rhetoric from Conservative political leaders about the need for more privately-owned and operated pipelines, it was an NDP Premier and a Liberal Prime Minister who secured their approval.

Interim federal Conservative leader Rona Ambrose criticized the government for not approving Northern Gateway, saying it cost the creation of 4,000 jobs, and claimed that Mr. Trudeau does not have enough political capital to make the Trans-Mountain project a reality.

While the pipeline has been approved on paper, it has not been built yet. The Kinder Morgan website projected a September 2017 start of construction.

kinder-morgan-trans-mountain-pipeline-runSupport for pipelines is high in Alberta, but not so much in British Columbia, where there will be fierce opposition to Kinder Morgan Trans-Mountain Pipeline expansion.

While visiting B.C. last September, I picked up a copy of Burnaby Now, a major newspaper in the City of Burnaby. Reported on the front page was a story about a charity-run style event against the expansion of the Kinder Morgan pipeline. In the same newspaper, an editorial cartoon lambasted BC NDP leader John Horgan for his then-indecisive position on the Kinder Morgan pipeline (he is now against it).

As an Albertan, I was unaccustomed to seeing positive mainstream media coverage of a pipeline protest. Editorial views in Alberta’s mostly-Postmedia owned newspapers are typically boiled down to ‘NDP bad, pipelines good.’

But the view in Burnaby was different, literally.

Unlike Alberta, where oil and gas is a large employer and many large oil projects are hidden from public view in the far north, the Kinder Morgan pipeline staging area is clearly visible on the side of Burnaby Mountain near Simon Fraser University. It is a powerful symbol.

If you believe that carbon emissions are a key cause of climate change, it makes sense that you would oppose the expansion of a permanent piece of infrastructure to transport oil. But stopping the Trans Mountain pipeline will not stop the development of Canada’s oil industry. Oil will continue to be shipped by truck or by rail but the policies included in the Climate Leadership Plan may lead to reduced carbon emissions.

With a provincial election in BC scheduled for early next year, expect the pipeline debate to take a central role in the campaign.

But in the meantime, Ms. Notley and Mr. Trudeau can enjoy their political victory.

The symbolism of today’s announcement is great, because Mr. Trudeau’s father was the great antagonist to western Canadian interests, and because it affirms the national direction on carbon pricing in the climate change policy debate.

As a friend and frequent observer of Alberta politics pointed out today, this might be the most politically significant pro-western decision made by a non-conservative Prime Minister in modern Canadian history.


Trump advisor coming to Alberta

Trump advisor Kellyanne Conway is headlining a fundraiser for the Alberta Prosperity Fund, a right-wing group backing Jason Kenney‘s hostile takeover of Alberta’s Progressive Conservative Party.

The same group hosted American anti-tax crusader Grover Norquist at a closed door reception in Calgary last November.