Alberta
Alberta government should pay dividends to Albertans from Heritage Fund
From the Fraser Institute
By Tegan Hill and Joel Emes
Despite promising in February to rebuild the Heritage Fund to help eliminate Alberta’s reliance on resource revenue, last month Alberta Premier Danielle Smith said she plans to use income from the fund to “assist in de-risking projects” in the oil and gas sector (in other words, projects that can’t secure financing from private lenders). Clearly, if Alberta has any hope of building up the Heritage Fund, it needs robust fiscal rules to help ensure governments responsibly grow the fund—and don’t raid it for other purposes.
The Lougheed government created Alberta’s Heritage Fund in 1976 to save a share of the province’s resource revenue for the future. Since its creation, however, governments have only contributed resource revenue in 11 out of 48 years of the fund’s existence, and just 3.9 per cent of total resource revenue has been deposited in the fund over its lifetime. Instead, governments have largely spent away onetime resource revenues, contributing to Alberta’s boom-and-bust cycle, rather than saving a share of resource revenue to turn it into a financial asset that can generate steady income over time.
While Premier Smith says she wants to build up the fund so its investment income (i.e. earnings) can eventually replace resource revenue in the budget, the fund’s earnings in 2023/24 are a projected $2.1 billion compared to a projected $19.4 billion in resource revenue. Obviously, Alberta needs a new approach to grow the fund. On this front, it can look to Alaska’s experience with its Permanent Fund, which was also created in 1976 but has grown much larger over time.
Unlike Alberta’s Heritage Fund, Alaska’s fund operates under robust fiscal rules. First, according to Alaska’s constitution, the state government must deposit at least 25 per cent of all mineral revenues into the fund each year. Alberta could introduce a similar constitutional rule.
In addition, a share of the Alaska fund’s earnings are set aside each year to ensure that the principal of the fund is not eroded through inflation. Alaska also prohibits use of the principal without approval by a referendum; the government may only spend the earnings of the fund (minus what’s needed to inflation-proof the principal).
And crucially, there’s the dividends—a topic that would surely pique the interest of many Albertans. In Alaska, the government pays a share of the fund’s earnings to Alaskan citizens via a dividend, which has helped support growth in the fund over the long term. By giving citizens an ownership share in the state’s resource fund, Alaskans recognize their vested interest and demand that the state maximize returns. Put simply, due to the annual dividend, Alaskans want the government to maintain the Permanent Fund’s health. And any government that tried to use the fund for irresponsible purposes would face the ire of Alaskan voters.
Which brings us back to Alberta. If the Smith government began contributing 25 per cent of resource revenue to the Heritage Fund and inflation-proofing the principal this year, it could pay each Albertan a dividend worth between $148 to $297 in 2024/25, equivalent to $594 to $1,187 per family of four. From 2024/25 to 2026/27, each Albertan could receive a total of $571 to $1,108 in dividends, equivalent to $2,284 to $4,430 per family of four. And as the fund grows, so would the dividends.
The Smith government has promised to rebuild the Heritage Fund, yet at the same time wants to use the fund’s earnings to “assist in de-risking” energy projects in the province. Without a mechanism to ensure growth of the fund, it will remain vulnerable to the whims of governments. Alberta should learn from Alaska’s success and start paying annual dividends to Albertans.
Authors:
Keyera Corp.’s natural gas liquids facilities in Fort Saskatchewan. Photo courtesy Keyera Corp.
From the Canadian Energy Centre
By Will Gibson
Keyera ‘Canadianizes’ natural gas liquids with $5.15 billion acquisition
Sarnia, Ont., which sits on the southern tip of Lake Huron and peers across the St. Clair River to Michigan, is a crucial energy hub for much of the eastern half of Canada and parts of the United States.
With more than 60 industrial facilities including refineries and chemical plants that produce everything from petroleum, resins, synthetic rubber, plastics, lubricants, paint, cosmetics and food additives in the southwestern Ontario city, Mayor Mike Bradley admits the ongoing dialogue about tariffs with Canada’s southern neighbour hits close to home.
So Bradley welcomed the announcement that Calgary-based Keyera Corp. will acquire the majority of Plains American Pipelines LLP’s Canadian natural gas liquids (NGL) business, creating a cross-Canada NGL corridor that includes a storage hub in Sarnia.
“As a border city, we’ve been on the frontline of the tariff wars, so we support anything that helps enhance Canadian sovereignty and jobs,” says the long-time mayor, who was first elected in 1988.
The assets in Sarnia are a key piece of the $5.15 billion transaction, which will connect natural gas liquids from the growing Montney and Duvernay plays in B.C. and Alberta to markets in central Canada and the eastern U.S. seaboard.
Map courtesy Keyera Corp.
NGLs are hydrocarbons found within natural gas streams including ethane, propane and pentanes. They are important energy sources and used to produce a wide range of everyday items, from plastics and clothing to fuels.
Keyera CEO Dean Setoguchi cast the proposed acquisition as an act of repatriation.
“This transaction brings key NGL infrastructure under Canadian ownership, enhancing domestic energy capabilities and reinforcing Canada’s economic resilience by keeping value and decision-making closer to home,” Setoguchi told analysts in a June 17 call.
“Plains’ portfolio forms a fully integrated cross Canada NGL system connecting Western Canada supply to key demand centres across the Prairie provinces, Ontario and eastern U.S.,” he said.
“The system includes strategic hubs like Empress, Fort Saskatchewan and Sarnia – which provide a reliable source of Canadian NGL supply to extensive fractionation, storage, pipeline and logistics infrastructure.”
Martin King, RBN Energy’s managing director of North America Energy Market Analysis, sees Keyera’s ability to “Canadianize” its NGL infrastructure as improving the company’s growth prospects.
“It allows them to tap into the Duvernay and Montney, which are the fastest growing NGL plays in North America and gives them some key assets throughout the country,” said the Calgary-based analyst.
“The crown assets are probably the straddle plants in Empress, which help strip out the butane, ethane and other liquids for condensate. It also positions them well to serve the eastern half of the country.”
And that’s something welcomed in Sarnia.
“Having a Canadian source for natural gas would be our preference so we see Keyera’s acquisition as strengthening our region as an energy hub,” Bradley said.
“We are optimistic this will be good for our region in the long run.”
The acquisition is expected to close in the first quarter of 2026, pending regulatory approvals.
Meanwhile, the governments of Ontario and Alberta are joining forces to strengthen the economies of both regions, and the country, by advancing major infrastructure projects including pipelines, ports and rail.
A joint feasibility study is expected this year on how to move major private sector-led investments forward.
Alberta
Alberta school boards required to meet new standards for school library materials with regard to sexual content
Alberta’s government has introduced new standards to ensure school library materials are age-appropriate.
School libraries should be safe and supportive places where students can learn and explore without being exposed to inappropriate sexual content. However, in the absence of a consistent standard for selecting age-appropriate library materials, school boards have taken different approaches, leading to concerns about safeguards in place.
In response to these concerns, and informed by feedback from education partners and the public, Alberta’s government has created standards to provide school boards with clear direction on the selection, availability and access to school library materials, such as books.
“Our actions to ensure that materials in school libraries don’t expose children to sexual content were never about banning books. These new standards are to ensure that school boards have clear guidance to ensure age-appropriate access to school library materials, while reflecting the values and priorities of Albertans.”
The new standards set clear expectations for school library materials with regard to sexual content and require school boards to implement policies to support these standards.
Standards for school library materials
Under the new standards, school libraries are not permitted to include library materials containing explicit sexual content. Non-explicit sexual content may be accessible to students in Grade 10 and above, provided it is age-appropriate.
“Protecting kids from explicit content is common sense. LGBTQ youth, like all children, deserve to see themselves in stories that are age-appropriate, supportive and affirming – not in material that sexualizes or confuses them.”
School boards must also regularly review their school library collections, publish a full list of available materials and ensure that a staff member supervises students’ access to school library materials. School boards will have to remove any materials with explicit sexual content from their school libraries by October 1.
School board policies and procedures
All school boards must have publicly available policies that align with the new standards for selecting and managing library materials by January 1, 2026. School boards can either create new policies or update existing ones to meet these requirements.
These policies must outline how school library materials are selected and reviewed, how staff supervise students’ access throughout the school day, and how a student, parent, school board employee or other member of the school community can request a review or removal of materials in the school library. School boards are also required to clearly communicate these policies to employees, students and parents before January 2026.
“A robust, grade- and age-appropriate library catalogue is vital for student success. We welcome the ministry’s initiative to establish consistent standards and appreciate the ongoing consultation to help craft a plan that will serve our families and communities well.”
“Red Deer Public Schools welcomes the new provincial standards for school library materials. Our division is committed to maintaining welcoming, respectful learning spaces where students can grow and thrive. Under the new standards for school libraries, we remain dedicated to providing learning resources that reflect our values and support student success.”
Quick facts
- The new standards will apply to public, separate, francophone, charter and independent schools.
- The ministerial order does not apply to municipal libraries located within schools or materials selected for use by teachers as learning and teaching resources.
- From May 26 to June 6, almost 80,000 people completed an online survey to provide feedback on the creation of consistent standards to ensure the age-appropriateness of materials available to students in school libraries.
Related information
- Ministerial Order
- School library standards engagement
- Reference Materials: Content warning: this document contains graphic content that may be disturbing to viewers and is not appropriate for young viewers. Viewer discretion is advised.
USAID Quietly Sent Thousands Of Viruses To Chinese Military-Linked Biolab
Canada’s euthanasia regime is already killing the disabled. It’s about to get worse
‘Far too serious for such uninformed, careless journalism’: Complaint filed against Globe and Mail article challenging Alberta’s gender surgery law
Canadian pro-freedom group sounds alarm over Liberal plans to revive internet censorship bill
-
Business18 hours agoMost Canadians say retaliatory tariffs on American goods contribute to raising the price of essential goods at home
-
National1 day agoWomen and girls beauty pageant urges dismissal of transgender human rights complaint
-
Alberta19 hours ago
Cross-Canada NGL corridor will stretch from B.C. to Ontario
-
International2 days agoSupport for the Ukraine war continues because no one elected is actually in charge.
-
Business2 days agoTrump slaps Brazil with tariffs over social media censorship
-
Business2 days agoCBC six-figure salaries soar
-
Business19 hours agoB.C. premier wants a private pipeline—here’s how you make that happen
-
Addictions2 days agoCan addiction be predicted—and prevented?