Alberta moved one step closer to becoming a banana republic this week.
Premier Smith announced she will use the Sovereignty Act to combat the federal government’s cap on emissions by putting forward a motion that will give her government more control over energy companies. Smith is proposing legislation and regulations that will:
- Declare the GHG emissions data collected in Alberta by an energy company to be “proprietary information and data…owned exclusively by the Government of Alberta.” In other words, Smith’s government will give itself the power to seize the company’s data.
- Prohibit companies from reporting or disclosing such data to anyone but her government. Smith will then release aggregate emissions data to the public and will report GHG data to the feds on behalf of the companies. This puts global energy companies in a bind since they must disclose such data in accordance with international filing requirements. And they regularly disclose such data to investors. All corporate disclosures must be consistent. If there are material misstatements or omissions between what Smith tells the public and the feds and what the companies tell their regulators and investors, the companies are open to litigation. At the very least the companies should demand the government indemnify them from damages resulting from the government taking control of the disclosure process as it relates to GHG emissions from their facilities located in Alberta.
- Restrict access to the company’s facilities. Only owners, employees, contractors, and people ‘specifically authorized’ by the government (let’s call them “insiders”) will be allowed on site. I’m curious. What’s Smith going to do if it’s an insider, not an outsider, who pursuant to federal law, tells the feds the emissions cap has been breached? Tar and feather them?
- Ensure no provincial entity helps the feds implement or enforce the emissions cap. How?
Why is she doing this?
Smith insists that the legislation imposing the emissions cap (even as amended to comply with the Supreme Court’s advice) still violates provincial jurisdiction. She’s taking a reference case to court to see if she’s right. And that’s fine.
The reference case should have been sufficient, but Smith went further. She’s bringing forward this draconian legislation under the Sovereignty Act.
To what purpose? Smith says she’s protecting the energy companies by seizing their GHG emissions data and reporting it on their behalf. These are multibillion dollar companies, I’m fairly certain they can do this for themselves.
At what cost? How many civil servants will Smith need to add to gather an energy company’s GHG data, to analyse it and aggregate it and feed it back to the public? To figure out what the disclosure should be before they feed it to the feds? To ensure the disclosure aligns with what the energy company is telling its international regulators and investors? To sign off on the disclosure in time to allow companies to meet their securities filing deadlines? Your guess is as good as mine.
How confident will energy companies and their investors be once Danielle Smith and Brian Jean and Rebecca Schulz and Rob Anderson and God knows who else start telling them how to run this part of their business?
And how effective will any of this be in stopping the feds from implementing the cap on emissions?
Smith says, “Companies should look at this and thank us for this, for being willing to protect them from federal government overreach. We’re anticipating that this should be welcomed by the energy sector.”
Really Danielle? I wouldn’t bank on it.
Susan on the Soapbox 
When T-Rump our southern dinosaur slaps a 25% tax on everything, our banana republic can disguise our bananas as coal and sell it to China. Provided that our Leaders can negotiate our exports out of a land-locked Republic. It’s hard to be serious when politics gets this silly. I appreciate your explanation.
Carl, I know exactly what you mean. Normally Smith’s policies aggravate me, but this one actually kept me awake at night. There is no conceivable reason for the Alberta government to seize the proprietary information of a private company. The fact that Smith and her supporters think this is A-OK in a democracy is shocking.
The silver lining for dangerous Dani and her clowns, is that as GHG emissions increase, bananas may grown well in the republic of Alberduh…
Seriously, think of all the good that money could do instead of being spent on grandstanding and court cases.
Sjhundert: Absolutely. I read in the Globe that Alberta has 10 actions before the courts. The amount of money being thrown down the drain is mind boggling. But hey, it keeps the lawyers happy.
Aren’t the oil companies worried that if Smith gets her foot in the door to seize their emissions information and control who comes and goes, that she might go even further? Hasta la vista, baby?
https://www.reuters.com/article/business/venezuela-seizes-operations-from-big-oil-companies-idUSN01493022/
Albertarian: This is exactly what the energy companies should be worried about. The link you sent describes the impact of Venezuela’s actions and also mentions Bolivia doing the same thing a year earlier. This is the kind of thing socialist governments do. The fact that Smith, her government and her supporters fail to understand that is deeply troubling.
This is simply a spit fight she and Poilievre are trying to draw Trudeau into
Mikegklein: Agreed, it is a “spit fight” but it sends a deeply disturbing message, namely that Smith and Poilievre are so determined to “own the libs” that nothing, not even the fundamental principals of democracy, are allowed to stand in their way.
Should Danielle interfere with details of any illegal behaviour she would surely be guilty of obstructing justice!
The future is an infinite succession of presents, and to live now as we think human beings should live, in defiance of all that is bad around us, is itself a marvelous victory. ~Howard Zinn
Surestpulpier0r: That was a wonderful quote. Thank you. What Smith has done is put private companies into a no-win situation. If they comply with federal legislation, they violate provincial legislation. If they comply with provincial legislation, they violate federal legislation. It’s insane and will end up before the courts if she proceeds with it.
Just when we thought she couldn’t get anymore Bat Shit Crazy – surprise!
Perry Hayward, one has to wonder how far she’ll go. Frankly, I think part of her problem is she and her MLAs have no experience working in large corporations or complex financial institutions. They have no idea how things work and blunder along, babes in the woods.
Remember when Notley was premier, every time she made a big announcement that would impact the energy sector, she had their executives up there on stage with her, signalling support. That certainly didn’t happen here. You have to ask yourself why.
‘Remember when Notley was premier, every time she made a big announcement that would impact the energy sector, she had their executives up there on stage with her, signaling support. That certainly didn’t happen here. You have to ask yourself why.’
Very good comment and in my view I do not believe that some of these CEOs want to be seen in public with this embarrassing government.
The part about limiting access to oil and gas sites – there are 300,000 active lease sites in Alberta. Does she plan on hiring 1.5 million new Sherrifs to provide this security?
Perry: good question. The red tape Smith’s edict will create is shocking. For example, what if you’re a federally regulated energy company and the feds want to take some ground water readings. Does the company have to ask Smith (“mother, may I”) before it can “allow” the groundwater guy on site, because, my gosh, what if the groundwater guy decides the GHG emissions were indirectly the cause of the groundwater problem. It’s easier to say no than yes, but that will gum up operations. So what’s a company to do?
The federal government insists this is an emissions cap, not a production cap. But many environmentalists and climate activists argue that you can’t reduce emissions from the fossil fuels sector without reducing production: that it’s simply impossible. I don’t have the expertise to assess the validity of that argument, but you can’t ignore it either.
On the other hand, Daniellezebub’s attitude towards the federal government’s role in protecting Canada’s air and water is simple: it doesn’t have one. As far as she is concerned, Canada should be even more balkanized than it already is, even though ours is one of the most decentralized federations on the planet. But the rest of Canada wouldn’t stand for Ottawa washing its hands of any environmental regulation, as she would like it to do.
Jerrymacgp: you’ve summarized the issues well. When Notley imposed the 100 megatonne cap on GHG emissions back in 2016, emissions were around 70 megatonnes. Production has increased since then and we’re still not at the cap. I understand the companies are afraid they’ll have to cut back production, but they don’t have to cut back yet. Also, the companies talk big as far as what they’re doing to reduce emissions, it’s time they produce results.
This is performative political nonsense. As you point out, the court challenge is what Alberta’s entitled to. It’s for the courts to decide what’s constitutional and what’s not. I doubt replacing possible federal overreach with definite provincial overreach will be welcomed by all these private companies, who as you point out can look after themselves.
As is typical for the UCP, I doubt any of them have really thought this grand plan through. They’re sticking it to the Liberals and, I think, one-upping Saskatchewan, who refused to hand over carbon tax money to the feds earlier, stealing Alberta’s thunder, the UCP may think.
What the UCP may not have considered is that they’re basically saying you can violate the law if you feel personally threatened by it. The base they’re appealing to is almost certainly going to apply this principle far more broadly than Smith would want. She’d likely clarify that it’s okay to violate (Liberal) federal laws, but provincial laws should be followed no matter how damaging they may seem. I doubt many people in this province will bother with that distinction. These antics are further encouraging lawlessness and division at a time unity’s need more than ever, all to retain power and toss out a PM who’s likely gone next year, anyway.
To top this off, I have Stephen Harper and the UCP in charge of my provincial pension now. That’ll be splendid, I’m sure. *shudder*
Jason, excellent point. As a result of Smith’s actions, she’s told Albertans it’s OK to violate federal law. Federal law is federal law regardless of which political party is in power. So what’s she going to do if/when the CPC are elected, revoke the law, hold it in abeyance in case the CPC pass laws that help Ont and Quebec at Alberta’s expense? This is a recipe for chaos…and right up Smith’s alley.
Susan, your recent Soapbox article is well argued. But we seem to live in world of emotion trumping reason. Many folks in the Province seem incapable of critical thought. The bottom line is that this latest proposal of Smith is a huge waste of taxpayers dollars and more fuel on the fire of “fuck the climate change agenda”.
Dale, you nailed it. Right after Smith’s announcement I was inundated by emails from her supporters applauding her decision. The thrust of their message was: Yes! Smith is sticking it to Trudeau again! Not one rational thinker in the bunch.
Once again, we find ourselves dealing with a nontransparent government which is choosing to disregard the free will of the companies and individuals to follow ethical and lawful reporting procedures and processes. She is encouraging deceit and deception just to stick it to the Liberals? And the money that is being spent to fight the legislation! It makes me sick!
Kimberlee: I agree. I can’t imagine what it would be like to work in the department of Justice and have the Justice minister tell you that this is what we’re going to do. Obviously the UCP’s contempt for experts extends to their own experts.
The UCP the party that calls everyone else socialists and communists is now trying an old communist strategy – taking over oil companies information.
I only have a question about this move. What if the companies say ‘ This is none of your business and we are communicating our emissions to those that are responsible for it’. Then what? Is Danielle Smith also going to make it mandatory?
When politics reaches these levels of lunacy we know what is coming. Actually with the fascists at the Federal level getting ready to take over, one wonders what will happen to Canada in the next 5 years.
https://thetyee.ca/Analysis/2024/12/03/Poilievre-Free-Ride-Power/
Carlos: your comment is exactly why I was up half the night worrying about this insane decision. As to what the companies will do about it, I think they’re between a rock and a hard place. They love that Smith is fighting the feds on their behalf, but they can’t be happy with what she’s rolled out to help them. I read in the Globe that one company said they will not be sending company personal to block “outsiders” from entering the site. So I guess Smith will have to rely on the authority behind the legislations saying “outsiders” are not allowed in. How she enforces this will be interesting.
I agree, this is starting to look like the corrupted dramas in South America.
I do not mind this happening at all. The more she webs herself in a pile of lies and bad decisions the faster this UCP cabal will be rejected by the public. I cannot believe people approve this kind of behaviour.
Once upon a time, I took a Poli Sci course. One of the very interesting things I learned was the obligations of vice-regal representatives. If a minister has committed a criminal offense, the Governor or Liutenant General is REQUIRED to remove the minister from office.
This not a reserve power exercised at discretion. To my knowledge, it’s never happened in Canada. Lt. Governor Kim of B.C. came closest, in the Bill van der Zalm hooraw, but wasn’t needed since van der Zalm resigned first. In an interview some years after the event, Lt. Governor Kim disclosed he was prepared to remove van der Zalm.
So Smith is playing with fire with her Sovereignty law ordering criminal activity.
Of course, there is a caveat. Scott Moe in Saskatchewan is already technically in jeopardy with directing non payment of carbon tax. The immediate defense – he didn’t commit any criminal acts, someone else did – is probably going to come up in the Supreme Court.
Here in Alberta … who knows. Lt. Governor Lakhani did something unprecedented when Smith first brought up this silly ass Sovereignty bill – she bluntly said she would refuse assent if it came to her desk as presented. The clown party government promptly amended the most egregious parts.
Lt. Governor Lakhani regards her job as a “constitutional fire extinguisher”. The question remains: is Smith igniting a conflagration or just a performative smoldering fume?
Gerald, your point about Lt. Governor Lakhani is one I hadn’t thought of. I wonder whether she’ll be comfortable signing off on the legislation which will allow the government to seize a company’s proprietary data. I’m sure she has access to lawyers who can provide her with independent legal advice on this issue. Should be an interesting discussion.
Susan, I think Lt. Governor Lakhani would prefer the federal government going to the Supreme Court. As in this scenario: Smith gets more strident, and the federal government asks for an opinion before anything comes to the LtG.
Now if Smith was actually on the ball & serious instead of performing, and something did come the LtG … I strongly suspect we would see her act.
And a final tidbit. There are actually 3 levels of royal assent. Provincial, then federal, and finally sovereign. The GG can override any LtG, and the Sovereign has the final say. In practice, the Sovereign defers to the vice-regals on-site, and GG’s rarely act on Provincial matters. The GG, however, has quashed provincial bills before.
The last occurrence was right here – Bible Bill Aberhart’s media bill was initially stomped down federally. The second and final smack down was from LtG Bowen, after Aberhart put some lipstick on the bill and tried again. LtG Lakhani actually obliquely referred to the whole incident in Sept of 23.
And in retribution, Aberhart’s government stopped paying the utility bills for Government House, and Lt-Gov Bowen had to move out. No Lt-Gov has lived in it since.
[Credit: Daveberta].
🙂 🙂 🙂
Only in Alberta – that is funny and of course Aberhart who as far as I know was as bad as Danielle Smith
@jerrmacgp
And that’s exactly what Lt.Governor Lakhani meant by “that’s why I live in my own house”. The context of the quote was the government of the day having leverage over the LtG.
Upshot is Lt.Governor Lakhani knows her Alberta political history, and takes her job seriously.
Now I got it – I learned something new today
Go Lt. Governor Lakhani Go
What a shame!
This conversation re: Lt Governor Lakhani has been very instructive (and entertaining). Thank you all.
Many of Canada’s significant trading partners require accountability for carbon footprint embedded in production. This requires transparency of data arising from those footprints. But I guess Albertns can survive just fine on the single Gulf Coast market for our tar. What other markets for other stuff?
Mikegklein: What markets indeed. Especially now that a number of American politicians have said the US must decrease its reliance on Canadian oil exports. That plus the 25% tariff don’t bode well for Alberta.
As young people like to say these days, Smith is delulu … well about many things. Imagining you have an independent jurisdiction and having one in reality are not the same thing.
Of course the current PM is very unpopular and anything she does that challenges the Federal government right now, probably goes over well with much of her right wing base. But I could imagine a time not too far in the future when we may have a different PM from a different party. So her foolishness will soon have to end soon.
Anyone who thinks a PM Poilievre will put up with the jurisdictional bs constantly coming from Alberta these days, is probably also as they say, delulu.
OH she is Delulu alright. She is DELULU XXX.
Amazing world we are creating.. It is sad to see what we are doing to ourselves and our great country.
‘Trudeau told Freeland that Carney would replace her as finance minister over Zoom’
Really?
The problem is the next one is even more egomaniac than this one.
Intriguing observation.
Mikegklein – Not sure in what sense you mean intriguing but I just meant that the next prime minister (Pierre Poilievre), is so enamored with himself that we are going to spend another 4 years looking at the mirror and admiring how good he is.
With God running the show down South it will be a combination made in Heaven.
With some more billions going to the army and even more going to protect Americans from our horrible borders and our fentanyl influence, we can pretty much forget about any improvements in Health Care or any other social program.
I hope that at least with more border guards, we can slow the selling of weapons from the US into Canada never mind the 11 million that will try to escape repatriation.
What can I say. I think the title is brilliant and that is why I am posting it
https://albertapolitics.ca/2024/12/lethbridge-west-by-election-voters-send-ndps-rob-miyashiro-to-the-alberta-legislature/
Carlos, thank you for this comment and the others you’ve posted over the last few weeks. I really appreciate them.
Things have been hectic in the Soapbox household for a number of reasons that I can’t go into here. However I hope to be back in full force in the new year.
All the very best to you.
Susan
Susan I am the one who has to thank you for providing all of us with the only place where we can feel some sanity in the middle of what they are now calling world disorder.
I sense that this is starting to peek and soon all these clowns will be fully uncovered and their ideologies put to test and things will change for a more reasonable position.
Trump is now threatening half the world as if we were in the 1950s when the US had basically control over much of the economy that had not been destroyed by the second world war. I think he will have a wakeup call very soon. Whether or not it will change his attitude I am not sure, but it will change his reach and power.
The Neo-Liberal fantasy of globalization made many people very rich but made the rest of us very precarious and things are unsustainable and the idea that we will allow these Bezos and Musks take care of it all, is a reality but so are the fronts we can mount against them. Elon Musk is preparing his own bed, and I will be in the front row to see him packed like an over roasted cookie. Of course, he now has the backing from his Lord, but things change fast in Trump’s world.
I hope things are ok with your family.
In a refreshing sign of intelligent life on the Great Plains of Alberta
Refreshing indeed