Alberta
History, Controversy & Indigenous Involvement – Death of Keystone XL
For many, few stories have been as captivating and as frustrating as that of the stop-and-start Keystone XL pipeline project, which appears to officially be reaching its end following the inauguration of President Joe Biden on Wednesday, January 20, 2021.
The Keystone XL pipeline extension was originally proposed by TC Energy in 2008 as the 4th phase of the existing Keystone Pipeline System, which traverses Canada and the United States. The 1,947 km pipeline would run from Hardisty, Alberta, to Steele City, Nebraska, dramatically increasing the transportation capacity of Alberta crude oil to 830,000 barrels per day.
The National Energy Board first approved the Keystone XL application in March 2010, with a number of conditions in place to protect environmental and landowner interests.
Opposition towards the project developed quickly, largely on the basis of environmental concerns. Environmental assessments released by the U.S. State Department, which established the pipeline would have “limited environmental impact”, were met with public backlash and mass protests.
In 2011, the State Department required TC Energy (then TransCanada) to reroute the pipeline around an “ecologically sensitive” area in Nebraska, to which TC Energy agreed.
In January 2012, President Barack Obama rejected the Keystone XL, but invited TC to submit another application, which was done in May 2012.
Following another 3 years of legislative debate, protest and controversial back and forth, Obama vetoed the bill to build the Keystone XL on February 24, 2015.
On November 6, 2015, the Obama Administration once again rejected TC Energy’s application to build the Keystone XL pipeline.
In this context, tensions continued to rise, as massive amounts of money and potential jobs hung in the balance with no end in sight. In 2016, Republican presidential candidate Donald Trump included the Keystone XL in his campaign, vowing to approve it if elected as President of the United States.
Following his election in November 2016, President Trump signed an executive order approving the Keystone XL pipeline, along with an order requiring American pipelines be built with American steel.
In late 2018, the pipeline’s construction was delayed once again by a U.S. federal judge, citing environmental impact.
Construction resumed in April 2020, following a pledge from Alberta Premier Jason Kenney to invest CAD$1.5 billion in the project in March 2020. Outrage from environmental and Indigenous groups continued in the wake of the announcement.
In May 2020, then-presumed presidential nominee Joe Biden shared plans to shutdown the Keystone XL as a part of his campaign. (1)
It is January 2021, and Biden has indeed followed through on his claim to scrap the pipeline. To the outrage of many Albertans and their fellow Canadians, one of Biden’s first executive orders as President of the United States, just hours after his inauguration, was to revoke TC Energy’s permit for the Keystone XL.
As of December 2020, more than 150 kilometres of pipeline had already been installed. According to Financial Post, the cancellation leaves behind approximately 48,000 tons of steel.
Biden’s decision has served to deepen the division between pro and anti-pipeline groups, including the opposing positions expressed by a number of Canadian Indigenous groups.
Over the course of the past decade, Indigenous opposition to the pipeline has been well documented through a series of protests and petitions, featuring countless Canadians who rallied in support of First Nations groups, environmental concerns and land rights.
In 2016, Donald Trump’s renewed approval of the pipeline was met with equally renewed opposition by those groups determined to halt the project once and for all. “The fight to kill the Keystone XL pipeline begins anew,” said Dallas Goldtooth, lead organizer for the Indigenous Environmental Network in 2017, “and Donald Trump should expect far greater resistance than ever before.”
On the other side of this opposition, the historic formation of the Natural Law Energy coalition came as a shock to many. Natural Law Energy (NLE) is a coalition of First Nations groups who expressed their support for the Keystone XL pipeline by pursuing investment opportunities with TC Energy. Little Pine First Nation, Louis Bull Tribe, Nekaneet Cree First Nation, Ermineskin Cree Nation and Akamihk Montana Cree First Nation came together to form the coalition with the ambition of providing First Nations groups with financial resources and opportunities.
For Chief Alvin Francis of Nekaneet First Nation in Saskatchewan, the pipeline presented an opportunity to secure funding for indigenous communities and aid indigenous youth in their schooling or business endeavors for years to come. “It’s about making life better for all of our youth,” he told the Globe and Mail in November 2020.
Just as Indigenous anti-pipeline groups celebrate the latest development, Biden’s executive order to cancel the pipeline once again has been met with disappointment from members of the NLE and its supporters.
Recent developments over the multi-billion dollar Keystone XL have also led to heated discussions between the Kenney Administration and Canadian Prime Minister Justin Trudeau. Kenney’s response to the Canadian Federal Government as well as the Biden Administration was one of absolute disappointment and anger, as Alberta’s oil and gas industry sustained another massive hit. He went as far as to call upon Trudeau to impose economic sanctions on the United States.
While many have echoed Kenney’s sentiments regarding the cancellation of the pipeline and the Biden Administrations early treatment of Canada and the province of Alberta, others have identified this development as an opportunity for Alberta to diversify. Under the current economic circumstances, can Alberta overcome the loss of the Keystone XL? Should Alberta focus on diversifying? Given the ongoing global shift towards renewable energy technology, can we afford not to?
For more stories, visit Todayville Calgary.
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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