Alberta News: Royalty Review, Economic Diversification funding, Incentives for Small-Scale Renewables

A new Royalty Review Framework was announced on January 29, 2016 along with the Final Report of the Advisory Panel  . The Panel recommended that existing royalty structures be maintained for 10 years on wells drilled before 2017, and that the current oil sands regime remain unchanged. Although the government states that it will create a “simpler, more transparent and efficient system that encourages job creation and investment”, Andrew Nikoforuk calls the result a “disaster” in a detailed review published in The Tyee  (Feb. 2) . The Alberta Federation of Labour participated in the Royalty Review meetings and roundtables; its submission, Royalty Policy is the Biggest Decision any Alberta Government has to Make      advocated Lougheed-era royalty rates equivalent to 30 per cent of market value, promotion of in-province upgrading and refining, and creation of an Alberta crown energy corporation for direct investment and equity participation in the industry. AFL President Gil McGowan reflects on his disappointment with the process in an article in The Tyee , (Feb. 10) .

On February 1, 2016 Alberta announced a new “Petrochemicals Diversification Program”, providing up to $500 million in incentives through royalty credits to encourage investment in energy processing facilities. The Government projects a job creation benefit of up to 3,000 new jobs during construction, and more than 1,000 jobs operational jobs. On February 5, 2016 the Alberta government announced $5 million  for the Alberta Municipal Solar Program, to provide rebates up to a maximum of $300,000 per project, to encourage solar installations on municipal buildings. A similar program, the On-Farm Solar Management program, will provide $500,000 in provincial and federal funding to encourage farmers to install solar energy systems  . A Greenpeace blog on Febraury 9  reacts to these programs and argues for the benefits of distributed, small-scale renewable energy.

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