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Alberta
8 FACTS YOU MUST KNOW – Canada Action on the proposed Teck Frontier Mine
#visionCanada2119
In an effort to help Albertans and Canadians understand each other and have meaningful conversations about energy, the environment, and the economy, Todayville presents this informative post from Canada Action. We invite you to share your questions, comments and concerns. Please note the first time you comment on a Todayville story you will be asked to register as a user. Once registered you are also invited to contribute your own original posts to Todayville’s front page. Thank you for taking part in these important community conversations.
Diagrams and thumbnail photo from Teck.com
From Canada Action
Teck Frontier Mine: 8 Facts You Must Know
With the federal government’s decision on the Teck Frontier Mine coming soon (in February), there’s some important details about this new oil sands project that need to be brought into the limelight.
Teck’s new oil sands mine in northern Alberta will be one of the most innovative projects of its kind to-date, making use of industry-leading technologies to:
> Reduce greenhouse gas (GHG) emissions intensity
> Minimize water use and protect water quality
> Reclaim land as soon as mining begins
> Ensure safe, secure tailings storage with leading-edge technology
> Prevent or mitigate possible impacts to wildlife
Fact #1: Global Oil Demand is Growing
But before we discuss these further, it’s essential we are all reminded of the paramount fact that global oil demand is projected to grow by nearly 10 million barrels per day between now and 2040, as outlined in the International Energy Agency’s (IEA) most recent World Energy Outlook 2019.
Heck, that’s the whole reason why Teck has proposed this massive new oil sands mine in the first place. If oil sands growth forecasts by the Canadian Energy Regulator (CER)and U.S. Energy Information Administration (EIA) come even close to being true, with production increasing 50% by 2040 and even more so by 2050, the new Teck Frontier Mine is just a small part of the puzzle for Canada’s energy industry going forward.
We know about projected growth for oil and natural gas demand in the foreseeable future, so why would anyone not want Canada to have as much market share as possible? As one of the most transparent, regulated and environmentally responsible petroleum producers on the planet, it only makes sense that Canada should be one of the last producers “out of the pool.”
> Canadian Oil is in the World’s Best Interest: ESG Scorecard
> Canada Ranks 6th on Democracy Index 2018 (ESG Criteria)
> Canada Tops Environmental Performance Index Among Top 10 Oil Exporters
Canada’s record of oil and gas production is exemplified by Teck’s initiatives to make Frontier one of the best-in-class oil sands mines ever built in regards to both the environment and Indigenous support.
Fact #2: Land Reclamation Will Begin as Soon as Mining Starts
> Land reclamation will begin as mining progresses, adhering to strict regulations set forth by the Alberta Energy Regulator (AER)
> The actual footprint of active mining will be smaller than the total project area due to on-going reclamation efforts
> With a size of about 292 square kilometres, the mine’s total surface area is about half the size of Edmonton but this land will not be all disturbed at once
Fact #3: Frontier Will Have a Carbon Intensity Less than 50% of USA Refineries
> GHG emissions intensity of the Frontier project will be about 50% less than the oil sands industry average
> Carbon intensity of the Frontier project will be less than half of the oil currently refined in the United States
> Energy efficient mining processes and cogeneration are among the industry-leading technologies that will help reduce GHG emissions
Fact #4: Extensive Work on Prevention & Mitigation for Wildlife
> Extensive assessments of potential effects on fish, wildlife and their habitat have been conducted to ensure the right steps are taken to prevent and mitigate effects during operations and after the mine is closed
> Any affected wildlife habitat will be fully reclaimed to a “…self-sustaining ecosystem with local vegetation and wildlife.” – AER
Fact #5: Frontier Will Have the Lowest Water Use Intensity
> Teck’s Frontier Mine will have one of the lowest water use intensities in the oil sands
> About 90% of water used to process the bitumen will be recycled, minimizing fresh water withdrawals from the Athabasca river
> Off-stream water storage will help to reduce water withdrawals from the river during low flow periods
> Safeguards will ensure water quality is protected and there are no leaks into the water table
Fact #6: Leading-Edge Tailings Management & Technology
> Teck’s Frontier Mine project will use state-of-the-art practices to create a safe and secure placement for tailings
> Centrifuges will de-water tailings fluid before placement mined-out pits, eliminating the need for dams after operations cease and providing increased levels of security for tailings containment in the process
Fact #7: All 14 Indigenous Communities Support the Project
> All 14 Indigenous groups in the region where the Teck Frontier Mine is proposed support the project. They include:
- Athabasca Chipewyan First Nation
- MikisewCree First Nation
- Fort McKayFirst Nation
- Fort Chipewyan Métis
- Fort McKayMétis
- Fort Mc Murray Métis1935
- Fort McMurrayFirst Nation #468
- MétisNation of Alberta- Region One and it’s member locals
- Athabasca Landing Local # 2010
- Buffalo Lake Local # 2002
- ConklinLocal # 193
- Lac La BicheLocal # 1909
- Owl River Local # 1949
- Willow Lake Local # 780
Fact #8: Teck Frontier Mine a Much-Needed Boon for the Energy Sector
> Frontier will employ up to 7,000 people during peak construction
> An additional 2,500 people will be employed throughout operations over a project life of 41 years
> 75,000 person-years of employment generated by the construction of Frontier
> $55 billion generated in provincial taxes and royalties
> $12 billion generated in federate corporate income and capital taxes
> $3.6 billion generated in municipal property taxes
Teck’s investment of $20.6 billion in northern Alberta comes at a time where a lack of new pipeline capacity and strangulating regulations have been choking the life out of one of Canada’s most valuable industries.
Frontier will create thousands of new employment opportunities, tens of billions in government revenues and provide a much-needed boost to an industry that has seen countless jobs and investor cash flee in droves to more competitive oil and gas producing jurisdictions over the past five years.
Much like the Trans Mountain Pipeline expansion, an approval of Teck’s Frontier Mine would help to restore investor confidence in Canada’s energy sector.
With the Trans Mountain Expansion, Keystone XL and Line 3 Replacement set to add more than a million barrels of additional pipeline capacity for Canada in the near future, it only makes sense that this project – with its low carbon intensity and leading-edge environmental initiatives – should provide some of the oil necessary to fill those pipes.
Learn more – Pipelines in Canada: What You Should Know
Canada Action is an entirely volunteer created grassroots movement encouraging Canadians to take action and work together in support of our vital natural resources sector. We believe it’s critical to educate Canadians about the social and economic benefits provided by the resource sector and industry’s commitment to world-class environmental stewardship. We’re strong supporters of Canada’s oil sands and the resource sector generally because we know how important these industries are to Canada’s present and future prosperity.
We’re committed to engaging Canadians in a more informed conversation about resource development, about how important it is to our society and about how we’re doing it well today and improving our practices for the future. We believe that by educating Canadians on the importance of the country’s resource sector – they’ll act on that information, stand up and make their voices count.
Alberta
Alberta government should create flat 8% personal and business income tax rate in Alberta
From the Fraser Institute
By Tegan Hill
If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America
Over the past decade, Alberta has gone from one of the most competitive tax jurisdictions in North America to one of the least competitive. And while the Smith government has promised to create a new 8 per cent tax bracket on personal income below $60,000, it simply isn’t enough to restore Alberta’s tax competitiveness. Instead, the government should institute a flat 8 per cent personal and business income tax rate.
Back in 2014, Alberta had a single 10 per cent personal and business income tax rate. As a result, it had the lowest top combined (federal and provincial/state) personal income tax rate and business income tax rate in North America. This was a powerful advantage that made Alberta an attractive place to start a business, work and invest.
In 2015, however, the provincial NDP government replaced the single personal income tax rate of 10 percent with a five-bracket system including a top rate of 15 per cent, so today Alberta has the 10th-highest personal income tax rate in North America. The government also increased Alberta’s 10 per cent business income tax rate to 12 per cent (although in 2019 the Kenney government began reducing the rate to today’s 8 per cent).
If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America, all while saving Alberta taxpayers $1,573 (on average) annually.
And a truly integrated flat tax system would not only apply a uniform tax 8 per cent rate to all sources of income (including personal and business), it would eliminate tax credits, deductions and exemptions, which reduce the cost of investments in certain areas, increasing the relative cost of investment in others. As a result, resources may go to areas where they are not most productive, leading to a less efficient allocation of resources than if these tax incentives did not exist.
Put differently, tax incentives can artificially change the relative attractiveness of goods and services leading to sub-optimal allocation. A flat tax system would not only improve tax efficiency by reducing these tax-based economic distortions, it would also reduce administration costs (expenses incurred by governments due to tax collection and enforcement regulations) and compliance costs (expenses incurred by individuals and businesses to comply with tax regulations).
Finally, a flat tax system would also help avoid negative incentives that come with a progressive marginal tax system. Currently, Albertans are taxed at higher rates as their income increases, which can discourage additional work, savings and investment. A flat tax system would maintain “progressivity” as the proportion of taxes paid would still increase with income, but minimize the disincentive to work more and earn more (increasing savings and investment) because Albertans would face the same tax rate regardless of how their income increases. In sum, flat tax systems encourage stronger economic growth, higher tax revenues and a more robust economy.
To stimulate strong economic growth and leave more money in the pockets of Albertans, the Smith government should go beyond its current commitment to create a new tax bracket on income under $60,000 and institute a flat 8 per cent personal and business income tax rate.
Author:
Alberta
Province to stop municipalities overcharging on utility bills
Making utility bills more affordableAlberta’s government is taking action to protect Alberta’s ratepayers by introducing legislation to lower and stabilize local access fees. Affordability is a top priority for Alberta’s government, with the cost of utilities being a large focus. By introducing legislation to help reduce the cost of utility bills, the government is continuing to follow through on its commitment to make life more affordable for Albertans. This is in addition to the new short-term measures to prevent spikes in electricity prices and will help ensure long-term affordability for Albertans’ basic household expenses.
Local access fees are functioning as a regressive municipal tax that consumers pay on their utility bills. It is unacceptable for municipalities to be raking in hundreds of millions in surplus revenue off the backs of Alberta’s ratepayers and cause their utility bills to be unpredictable costs by tying their fees to a variable rate. Calgarians paid $240 in local access fees on average in 2023, compared to the $75 on average in Edmonton, thanks to Calgary’s formula relying on a variable rate. This led to $186 million more in fees being collected by the City of Calgary than expected.
To protect Alberta’s ratepayers, the Government of Alberta is introducing the Utilities Affordability Statutes Amendment Act, 2024. If passed, this legislation would promote long-term affordability and predictability for utility bills by prohibiting the use of variable rates when calculating municipalities’ local access fees. Variable rates are highly volatile, which results in wildly fluctuating electricity bills. When municipalities use this rate to calculate their local access fees, it results in higher bills for Albertans and less certainty in families’ budgets. These proposed changes would standardize how municipal fees are calculated across the province, and align with most municipalities’ current formulas.
If passed, the Utilities Affordability Statutes Amendment Act, 2024 would prevent municipalities from attempting to take advantage of Alberta’s ratepayers in the future. It would amend sections of the Electric Utilities Act and Gas Utilities Act to ensure that the Alberta Utilities Commission has stronger regulatory oversight on how these municipal fees are calculated and applied, ensuring Alberta ratepayer’s best interests are protected.
If passed, this legislation would also amend sections of the Alberta Utilities Commission Act, the Electric Utilities Act, Government Organizations Act and the Regulated Rate Option Stability Act to replace the terms “Regulated Rate Option”, “RRO”, and “Regulated Rate Provider” with “Rate of Last Resort” and “Rate of Last Resort Provider” as applicable. Quick facts
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