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Providing coverage of Alaska and northern Canada's oil and gas industry
December 2005

Vol. 10, No. 49 Week of December 04, 2005

Alberta to override federal Kyoto rules

Province says it will introduce its own regulations to curb greenhouse gas emissions, give them precedence over federal rules

Gary Park

Petroleum News Canadian Contributing Writer

Alberta is spoiling for a showdown with the Canadian government in their on-going feud over the implementation rules for the Kyoto climate change treaty.

In the latest rift, Alberta said it intends to introduce its own regulations to curb greenhouse gas emissions, giving them precedence over federal legislation.

Alberta Environment Minister Guy Boutilier told reporters in Edmonton his government is best equipped “to control large final emitters in Alberta and we clearly will control emissions.”

The two governments have been at odds since Kyoto was first signed in 1997 over how to achieve the treaty objectives of reducing greenhouse gas emissions to 6 percent below 1990 levels over the 2008-2012 period.

A spokesman for the Alberta environment department said provincial officials are still ready to negotiate with Ottawa, but he was emphatic that large industrial emitters of greenhouse gases will be required to abide by the province’s standards.

Suncor: provincial regulations needed

Gord Lambert, vice president of sustainable development for oil sands giant Suncor Energy, told the Edmonton Journal Nov. 22 that provincial regulations are needed because Alberta better understands the oil and gas sector.

He said the industry does not want to face reporting to two governments unless they are able to harmonize the regulations.

Until now it has been assumed that Alberta’s regulations would be consistent with federal standards.

But the Alberta government spokesman indicated the province is prepared to put itself at odds with Ottawa by passing laws in spring 2006 that “will be what regulates GHGs here,” although federal regulations might still be supported by Alberta.

Federal officials have said in the past that Alberta could develop its own regulations provided they were “equivalent” to federal legislation.

The Canadian Constitution gives provinces jurisdiction over their natural resources, but allows the federal government to sign international treaties such as the Kyoto Protocol.

Alberta Premier Ralph Klein, while attempting to build a consensus among Canada’s 10 provinces, has also reserved the right to challenge Ottawa’s right to impose the Kyoto treaty within his jurisdiction.

The province is one of the largest sources of Canada’s emissions through its petroleum industry, particularly the oil sands sector which is rated as one of the major contributors to carbon dioxide emissions.

Alberta flagged its intention to diverge from Ottawa’s path in October when it filed objections to proposed amendments to the Canadian Environmental Protection Act to explicitly add greenhouse gas emissions to that law.

Federal Environment Minister Stephane Dion, in laying the groundwork for the United Nations conference on climate change which opens in Montreal Nov. 28, announced Nov. 22 that six gases will be added to the list of substances governed by the act.

They are carbon dioxide, methane, nitrous oxide, sulfur hexfluroide, hydrofluorocarbons and perflurorocarbons — all of which are deemed to pose an actual or potential danger to the environment, human life or health.

Dion said that posting the gases will allow Ottawa to establish standards for large industrial sources of greenhouse gas emissions. He told a news conference in Ottawa that disagreements with Alberta appeared to have been settled.

Neither he nor his department could be reached to comment on the latest Alberta stance.

Dion: Kyoto will transform economy

Having been thwarted last spring in it first attempt to amend the environmental protection act and define greenhouse gas emissions as toxic, the government has since decided that the act is sufficient to cover substances that could be harmful to the environment without the need to identify them as toxic.

Dion said earlier in November that Canada’s economy will be transformed by Kyoto because government, business, municipalities and individuals will be buying and selling credits for reducing emissions of CO2, with Ottawa making C$1 billion worth of purchases.

He said lowering greenhouse gas emissions by 270 million tones annually during the Kyoto period from 2008 to 2012 will result in greater energy efficiency, energy security and less waste.

Asked why greenhouse gas emissions have climbed in Canada by 24 percent since 1990, he said Canada is “the sole Kyoto country that has an oil and gas industry that is booming.”

The prospects of a renewed Kyoto battle come only a month after the Alberta government disclosed it was proceeding with a long-term development strategy that involves sweeping changes to the way it manages the oil sands.

If the plan is implemented, the Pembina Institute claims it will give less environmental protection to the boreal forest, rivers and wildlife in northern Alberta.






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