Varcoe: 'There's a giant battle coming' — Smith throws down gauntlet in power feud with Ottawa

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On the finish of her victory speech Monday, UCP Chief Danielle Smith lobbed just a few verbal grenades towards Ottawa over its contentious power insurance policies.

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The incoming federal emissions cap on the oil and gasoline sector and Justin Trudeau’s authorities’s plan for a net-zero electrical energy grid by 2035 are actually squarely inside the crosshairs of Smith’s newly re-elected authorities.

“As premier, I can not below any circumstances enable these contemplated federal insurance policies to be inflicted upon Albertans. I merely can’t and I gained’t,” she declared.

“I invite the prime minister to as a substitute halt the introduction of those dangerous insurance policies and are available to the desk in good religion to work collaboratively with Alberta on an power emissions technique.”

These phrases, coming simply moments after defeating the NDP within the 2023 common election, will stake out the subsequent battle strains with the Trudeau authorities on power: the right way to finest decarbonize oil and gasoline manufacturing in Alberta this decade, and the right way to shift to a net-zero electrical energy system inside a dozen years.

These are important financial and environmental points for a province that incorporates the world’s fourth-largest oil reserves, and an electrical energy system that leans on pure gas-fired technology to maintain the lights on.

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“It was actually combative and he or she didn’t point out the sovereignty act, however I count on that’s going for use in a short time,” stated Mount Royal College political scientist Duane Bratt stated.

“Buckle up.”

The stakes are excessive for each side.

The federal authorities has set a goal to achieve internet zero by 2050, however doesn’t have loads of time to achieve its aggressive 2030 targets.

Its emissions-reduction plan initiatives a 42 per cent reduce to grease and gasoline sector greenhouse gasoline emissions (from 2019 ranges) by the tip of this decade.

Smith argues this is able to successfully grow to be a manufacturing reduce.

The sector is the biggest emitting business within the nation, though many firms have adopted net-zero targets, together with the most important oilsands producers.

Alberta wants to draw billions of {dollars} of funding into rising areas of decarbonization, and federal and provincial co-operation will likely be required to make it occur.

Smith began off her victory speech Monday evening by referencing former Progressive Conservative premier Ralph Klein in 1993, declaring: “Welcome to a different miracle on the prairies.”

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If we’re going to show to the historical past books, it’s value noting the various scraps that Klein had with the Liberal authorities of Jean Chretien over the Kyoto accord.

But, Klein’s authorities additionally made a deal within the Nineties with the federal authorities to create a brand new tax and royalty regime for the oilsands.

It sparked a wave of funding into the oilsands — an astronomical $262 billion in capital spending between 1996 and 2015 — and ignited a improvement part that has generated billions of {dollars} in royalties and created hundreds of jobs.

Enterprise Council of Alberta president Adam Legge stated the group is worried with each the emissions cap and the net-zero electrical energy normal, calling them “flawed public insurance policies.”

“What we’ve been encouraging the federal authorities to do is be versatile,” Legge stated. “If they will be digging of their heels, then I believe we’re (in) for a major battle.”

The following few months will present how huge the chasm between the 2 sides actually is, as Ottawa strikes ahead with its oilpatch emissions restrict and the incoming Clear Electrical energy Laws.

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In Alberta, purely gas-fired technology made up about 60 per cent of the province’s complete put in technology capability final 12 months. Decreasing emissions from such services will likely be essential — however doubtlessly expensive.

Take city-owned Enmax Corp., which has about 1,500 megawatts of electrical energy technology capability, with 1,300 MW coming from its gas-fired services.

The native utility is analyzing the feasibility of a carbon seize unit at its Shepard Vitality Centre. It’s additionally taking a look at monetary assist out there from the federal authorities to de-risk the expertise.

“If the federal authorities desires to fulfill a coverage goal of 2035, that shouldn’t go on the backs of ratepayers and Calgarians,” Enmax CEO Mark Poweska stated Tuesday after the corporate’s annual assembly.

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“We’ll be on the lookout for how can we make it economical for our clients, whereas on the identical time reaching coverage targets?”

Equally, the oilpatch isn’t on the lookout for a rumble over federal coverage, nevertheless it desires an open dialogue between business and each ranges of presidency within the coming months.

“The underside line is, there’s no technical option to meet that cap, the emi
ssions cap, with out slicing manufacturing,” Tamarack Valley Vitality CEO Brian Schmidt stated in an interview.

“I simply assume the cap was introduced with out actually understanding the implications . . . The reply is collaboration.”

There are additionally main power initiatives on the drafting board which are inching forward, however will seemingly want a joint federal-provincial incentive program to make them financial and aggressive with present U.S. grants.

In Ottawa, federal Pure Sources Minister Jonathan Wilkinson informed reporters he’ll work with Alberta to scale back emissions and construct a powerful economic system.

“I’m not seeking to choose a battle with Alberta or with Nova Scotia or British Columbia, I’m involved in working collaboratively,” he stated.

The proof will come when the ultimate guidelines and rules on these vital insurance policies are launched and put into place.

The day after the election, Smith wasn’t giving an inch.

Talking to QR radio host Shaye Ganam, Smith stated she’d discuss with the prime minister later within the day, however indicated Alberta is making ready for a conflict over the net-zero grid requirement and the emissions cap.

“There’s a giant battle developing,” she stated.

In different phrases, seize a seat.

Chris Varcoe is a Calgary Herald columnist.

cvarcoe@postmedia.com

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