Alberta Minute: Issue 385

Alberta Minute - Your weekly one-minute summary of Alberta politics.

📅 This Week In Alberta: 📅

• Prime Minister Mark Carney has designated the proposed Pacific Link oil pipeline to Canada's West Coast as the first project of national interest under the Building Canada Act, announcing the decision with Premier Danielle Smith in Fort McMurray on October 1st. The pipeline would run between Bruderheim and Roberts Bank, BC, carrying one million barrels of oil a day and opening Alberta's bitumen market to Asia. Its cost is estimated at between $35.2 billion and $43.7 billion, to be split between the federal Crown corporation Trans Mountain Corporation and the provincial government, with Pembina Pipeline Corporation also interested as a private-sector investor. The Major Projects Office and the Canada Energy Regulator will run a streamlined review to issue a conditions document by September 1st, 2027, after which construction could begin. The provincial government estimates the pipeline would generate more than $265 billion in additional royalties for Alberta over an operating life of roughly 50 years, and claims it could support up to 140,000 jobs during construction and another 50,000 jobs annually once complete. A government official told The Canadian Press that the roughly $4 billion the project is expected to cost before September 2027 will initially be paid by the federal and provincial governments. Smith called the designation a "significant victory" for Alberta and Canada and, referring to the upcoming referendum question on whether Alberta should stay in Canada, said the project's advancement shows the power of a unified country. Alberta NDP Leader Naheed Nenshi welcomed the decision, saying his party had advocated for the southern route for months over Smith's objections.
  
  
• The provincial government will launch a formal request for proposals this fall, asking private-sector proponents to propose a high-speed rail line between downtown Calgary and downtown Edmonton, with service to Red Deer, Airdrie, and both international airports. Premier Danielle Smith and Transportation Minister Devin Dreeshen unveiled the plan on September 28th, with Smith saying the winning proposal will be expected to require minimal financial investment by the provincial government and that a proponent will be chosen by April 2027. The Province's Passenger Rail Master Plan, completed in June, estimated a high-speed line on new, dedicated tracks at $38 billion for construction and vehicles, compared with $25 billion for conventional diesel trains alongside the existing freight corridor. The high-speed option, running at up to 320 km/h and cutting the downtown-to-downtown trip to one hour and 45 minutes, was the only one to pass the plan's cost-benefit test. Neither the provincial nor the federal government has attached a price or a public funding figure to the project now going to tender. According to Smith, the federal government has agreed to refer the project to the Major Projects Office once a proponent is chosen. The master plan itself cautioned that handing integrated delivery and long-term operation to private partners could reduce efficiency and weaken competition.
  
  
• Ontario Premier Doug Ford says his government is prepared to invest public money in the proposed Northern Shield Energy Corridor, a pipeline that would carry Alberta crude oil about 3,300 kilometers from Hardisty to refineries in Sarnia, Ontario. Speaking with Premier Danielle Smith at a Calgary energy event on September 28th, Ford argued the pipeline could be built in less than four and a half years, and Smith agreed the timeline was achievable. According to the Alberta government, the pipeline could initially carry about 500,000 barrels of crude oil per day, eventually expanding to as much as 800,000. The project has no estimated cost or confirmed construction timeline, and a feasibility study of its costs overseen by Infrastructure Ontario is expected by the end of 2026. Ford gave no dollar amount for Ontario's contribution, later clarifying that it would be a small investment and that he expects outside investors to play a role.
  
  
• Premier Danielle Smith announced on September 30th that the provincial government will introduce legislation this fall to increase penalties for illegal garbage dumping. Fines would range from $10,000 to $100,000 for individuals and from $100,000 to $1 million for corporations. Courts would also be able to impose jail sentences of 30 days to six months. The Province says the City of Calgary received about 30,000 complaints and nearly 9,000 service requests about illegal dumping on municipal property last year, and issued 165 tickets and three fines. Municipal Affairs Minister Dan Williams said illegal dumping has become a common problem throughout Alberta, often by people from outside rural municipalities. The legislation would also require higher-risk waste transfer and storage facilities, those handling more garbage or storing it for longer, to obtain provincial registration and meet other new requirements. The Province says those rules would apply to about 150 of Alberta's 684 waste transfer and storage sites.
  
  
• The provincial government has committed $2.4 million to Brick House Recovery Centre to expand gambling addiction treatment in Edmonton, Calgary, and online. The grant will be paid before the Province starts collecting operators' contributions from its new regulated online gambling market, which launched in July and made Alberta the second province after Ontario to let private operators offer sports betting and casino products under a provincial licence. The Province has pledged to direct 1% of regulated online gambling revenues to treatment. Minister Dale Nally says that contribution should cover the intensive outpatient treatment needed by people with problem gambling, but that the percentage is not fixed and could be raised. About 50 operators, including DraftKings, BetMGM, and FanDuel, have registered with Alberta Gaming, Liquor & Cannabis. Officials estimate that around 70% of gambling activity had gone through foreign-licensed operators, and forecast around $1 billion in gambling revenue in the market's first year.

🚨 This Week’s Action Item: 🚨

The proposed Pacific Link pipeline would be one of the largest energy infrastructure projects in Canadian history, creating a new route for Alberta oil to reach international markets while potentially generating billions in additional provincial royalties. With the federal and provincial governments expected to cover billions in initial costs before private investment is secured, there are also important questions about the project's cost, risks, and potential return for taxpayers.

Do you support moving ahead with Pacific Link?

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