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Alberta fighting federal “unconstitutional intrusion” into provincial jurisdiction

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Alberta to fight federal plastics ban once more

Alberta’s government will continue defending the province’s constitutional jurisdiction and economy by intervening in Ottawa’s appeal of the Federal Court’s ruling on plastics.

On Nov. 16, the Federal Court of Canada ruled that the federal order-in-council classifying plastics as toxic is not only unreasonable but unconstitutional. The federal government has chosen to appeal this decision, ignoring calls from Alberta and others to accept the court’s decision.

As a result, Alberta’s government will participate in the appeal and will argue that the federal government’s decision to label plastic as a “toxic substance” is an unconstitutional intrusion into provincial jurisdiction.

“It is past time for Ottawa to listen. We have told them they are overreaching their jurisdiction, the private sector has told them so, and so have both the Supreme Court and the Federal Court. Ottawa cannot assume regulatory authority over any substance simply by designating it as toxic. We will continue to push back against Ottawa’s unconstitutional actions, including through this legal action, until they listen.”

Danielle Smith, Premier

The toxic designation and bans have also had a detrimental impact on Alberta’s economy. Alberta’s Industrial Heartland Association estimates the designation will potentially jeopardize more than $30 billion in capital investment in the petrochemical sector by 2030. Those risks would also put Albertan and Canadian workers at risk of losing their jobs.

“The Federal Court clearly ruled that the federal government’s plastics ban policies were unconstitutional. The federal government’s environmental policies and constitutional overreach have been heavily criticized and this ruling further confirms the indisputable nature of provincial jurisdiction in these matters. We are intervening in this appeal and will continue to participate wherever and whenever necessary to protect Alberta’s interests.”

Mickey Amery, Minister of Justice

In addition to intervening in the appeal, Alberta will monitor any further legal action taken to remove plastic manufactured items from the current Schedule 1 of the Canadian Environmental Protection Act. Several Calgary-based companies producing compostable plastic bags are now caught in the ban and will be barred from supplying Calgarians with low-emissions alternatives to traditional plastic shopping bags.

“Instead of listening to the courts and to Canadians, the federal government has chosen overreach once again. We will continue standing up for our constitutional jurisdiction while focusing on more effective ways to reduce plastic waste and keep it out of landfills.”

Rebecca Schulz, Minister of Environment and Protected Areas

Alberta is committed to reducing plastic waste through initiatives like extended producer responsibility, which encourages businesses to find new ways to recycle materials and reduce waste. The province also advocates for strategies that create economies of scale, promote recycled content and develop local markets for transformed plastic waste.

Quick facts

  • On April 23, 2021, the administrator in council issued an order-in-council directing that “plastic manufactured items” be added to Schedule 1 of the Canadian Environmental Protection Act, 1999 (CEPA).
  • The category of plastic manufactured items includes every piece of plastic that enters Alberta.
  • Once a substance is designated as toxic under CEPA, CEPA allows the federal government to make regulations regulating every aspect of that substance’s life, from manufacture to sale to use and to disposal.
  • Canada subsequently enacted the Single-use Plastics Prohibition Regulations (SUPPR) prohibiting the manufacture, import and sale of six single-use plastics. SUPPR is only valid if “plastic manufactured items” is listed as toxic on Schedule 1 of CEPA.
  • The Responsible Plastic Use Coalition, Dow, Imperial Oil and Nova applied for a judicial review of the order. They challenged it as unreasonable on administrative law grounds and as unconstitutional on division of powers grounds.
  • On Sept. 7, 2022, Alberta intervened in the application to address the constitutional questions. Saskatchewan intervened on Oct. 24, 2022.
  • The application was heard March 7-9, 2023, and the court reserved its decision.
  • On Nov. 16, the federal Court of Canada issued its decision. Justice Angela Furlanetto concluded that the order adding “plastic manufactured items” to the Schedule 1 was both unreasonable from an administrative law perspective, and unconstitutional.

This is a news release from the Government of Alberta.

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Alberta

Temporary Alberta grid limit unlikely to dampen data centre investment, analyst says

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From the Canadian Energy Centre

By Cody Ciona

‘Alberta has never seen this level and volume of load connection requests’

Billions of investment in new data centres is still expected in Alberta despite the province’s electric system operator placing a temporary limit on new large-load grid connections, said Carson Kearl, lead data centre analyst for Enverus Intelligence Research.

Kearl cited NVIDIA CEO Jensen Huang’s estimate from earlier this year that building a one-gigawatt data centre costs between US$60 billion and US$80 billion.

That implies the Alberta Electric System Operator (AESO)’s 1.2 gigawatt temporary limit would still allow for up to C$130 billion of investment.

“It’s got the potential to be extremely impactful to the Alberta power sector and economy,” Kearl said.

Importantly, data centre operators can potentially get around the temporary limit by ‘bringing their own power’ rather than drawing electricity from the existing grid.

In Alberta’s deregulated electricity market – the only one in Canada – large energy consumers like data centres can build the power supply they need by entering project agreements directly with electricity producers.

According to the AESO, there are 30 proposed data centre projects across the province.

The total requested power load for these projects is more than 16 gigawatts, roughly four gigawatts more than Alberta’s demand record in January 2024 during a severe cold snap.

For comparison, Edmonton’s load is around 1.4 gigawatts, the AESO said.

“Alberta has never seen this level and volume of load connection requests,” CEO Aaron Engen said in a statement.

“Because connecting all large loads seeking access would impair grid reliability, we established a limit that preserves system integrity while enabling timely data centre development in Alberta.”

As data centre projects come to the province, so do jobs and other economic benefits.

“You have all of the construction staff associated; electricians, engineers, plumbers, and HVAC people for all the cooling tech that are continuously working on a multi-year time horizon. In the construction phase there’s a lot of spend, and that is just generally good for the ecosystem,” said Kearl.

Investment in local power infrastructure also has long-term job implications for maintenance and upgrades, he said.

“Alberta is a really exciting place when it comes to building data centers,” said Beacon AI CEO Josh Schertzer on a recent ARC Energy Ideas podcast.

“It has really great access to natural gas, it does have some excess grid capacity that can be used in the short term, it’s got a great workforce, and it’s very business-friendly.”

The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.

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Alberta Next: Taxation

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A new video from the Alberta Next panel looks at whether Alberta should stop relying on Ottawa to collect our provincial income taxes. Quebec already does it, and Alberta already collects corporate taxes directly. Doing the same for personal income taxes could mean better tax policy, thousands of new jobs, and less federal interference. But it would take time, cost money, and require building new systems from the ground up.

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