Alberta Update: December 1, 2023

This Week

Fiscal Update: Nate Horner, President of the Treasury Board and Minister of Finance, had good news in a mid-year fiscal update this week. Alberta’s UCP government is forecasting a $5.5 billion surplus for 2023-24, $3.2 billion higher than expected in Budget 2023 earlier this year. Among the reasons for the higher surplus are higher bitumen royalties and tax revenue from the province’s growing economy. You can read the full details here.

Alberta Sovereignty Act: Premier Danielle Smith introduced the first Alberta Sovereignty Act within a United Canada Act resolution to counter the federal government’s proposed Clean Electricity Regulations (CERs). Premier Smith stated the federal government’s plan to achieve a carbon-neutral power grid by 2035 was unaffordable, unreliable, and unconstitutional. Instead, the province is working to achieve net zero by 2050. The resolution, if passed, would do the following:

Urge the government to challenge the CERs in court.
Order all provincial entities not to cooperate with the implementation of the CERs. This does not apply to private companies and individuals.
Call on Alberta’s government to collaborate with entities such as the Alberta Electric System Operator (AESO) and Alberta Utilities Commission (AUC) to enact reforms in the province’s electrical system, aiming to guarantee affordability and reliability of the grid.
Direct the government to collaborate with industry, regulators, and various stakeholders to examine the feasibility of establishing a provincial Crown corporation. The Crown Corporation would enhance the reliability and affordability of the grid by building new generation plants or purchasing assets that private industry deem too risky due to the CERs.

Read more about the Alberta Sovereignty within a United Canada Act here.

Investment by Dow in Alberta’s Path2Zero initiative: Premier Danielle Smith, Minister of Energy and Minerals Brian Jean, and Minister of Jobs, Economy and Trade Matt Jones announced a $9 billion Dow investment for the world’s first net-zero Scope 1 and 2 greenhouse gas emissions integrated ethylene cracker and derivatives site. This petrochemical facility is expected to generate approximately 6,000 jobs during the construction phase and sustain 400 to 500 full-time positions once operational. The Path2Zero initiative aims to manufacture and supply roughly three million metric tonnes of certified low- to zero-carbon emissions polyethylene and ethylene derivatives to customers worldwide. Premier Smith discussed how this endeavor not only positions Alberta as a global leader in emissions-reducing technologies like carbon capture, utilization, and storage but also contributes to the establishment of the province as a key player in the industry.

Improving mental health assistance for farmers and ranchers: The Government of Alberta announced an additional $388,500 to the Agricultural Research and Extension Council of Alberta to generate awareness and expand mental health research and support available to farmers and ranchers through the AgKnow program. The AgKnow Alberta Farmer Mental Health Network was established in 2022 with a $524,500 Canadian Agricultural Partnership (CAP) grant. Since its launch, AgKnow has hosted more than 24 workshops for farmers and has connected 12 agriculturally-informed therapists to support 39 farm families.

Increased funding for student enrolment: The Government of Alberta announced an additional $30 million to help school authorities address enrolment growth better. This academic year, schools are facing a surge in enrolment beyond anticipated levels. With the funding, school authorities will be granted $1,500 per student for actual enrolment growth ranging from zero to 100 students. Enrolment growth exceeding 100 students will receive funding at a rate of $2,000 per student. In the next three years, the Alberta government is allocating over $820 million to school divisions to tackle the challenges posed by enrolment growth. This financial support can be utilized for the recruitment of extra teachers and classroom support staff, enabling school authorities to effectively handle increasing class sizes and a growing student population.

New standing committee to improve Alberta EMS: As part of its efforts to realign Alberta’s healthcare system, the Government of Alberta is implementing initiatives to enhance the efficiency of Emergency Medical Services (EMS). Alberta currently employs a centralized dispatch model for EMS, where 911 calls are directed to a central dispatch center, and the closest available ambulance is dispatched. Responding to concerns from municipalities, an independent EMS review was commissioned by the province. It identified several areas for improvement, including recommendations to strengthen collaboration with municipalities and EMS partners. The government has accepted all the review’s recommendations. To leverage the insights and firsthand knowledge of paramedics and EMS partners, the province is extending an invitation for their participation in a new standing committee. With a three-year term, this committee will directly report to the Ministry of Health. Its primary objective is to contribute to the ongoing evaluation of the EMS system, offering recommendations for enhancements in workforce, system performance, and standards. The committee will address various facets of the system, encompassing air ambulance, dispatch, ground ambulance, and medical first response.

Expanding capabilities in the field of veterinary medicine: The Government of Alberta is funding an additional $10 million, for a total of $68.5 million, to support the construction of the new Veterinary Learning Commons building at the University of Calgary. The construction, commencing on December 1 with the groundbreaking, is anticipated to conclude in the academic year 2025-26. Upon completion, the capacity for veterinary medicine training seats will increase from 50 to 100, doubling the current number.

Consultation for Budget 2024: Albertans are invited to provide feedback as the government prepares for Budget 2024. The government is hosting telephone town halls on Dec. 11 and Dec. 12, and has opened an online submission portal that will be live until Jan 19. More information on surveys, telephone town halls, and written submissions can be found here.

What’s Next

Legislature: The Legislature is expected to sit until December 7.

Premier Smith and Minister Schulz at COP28 Summit: Premier Danielle Smith and Minister Rebecca Schultz will travel to Dubai for the 28th Conference of the Parties to the United Nations Framework on Climate Change (COP28) to showcase Alberta’s effective and innovative approach to reducing emissions and to discuss opportunities in the energy, infrastructure, education, transportation, and agriculture sectors. They will be at the summit from December 2^nd to 11^th.

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