The News Rundown
- The new environmental goal for Canada is to cut emissions by 40-45% below 2005 levels by 2030.
- To attempt to achieve this there’s $9.1b in new investments (non-nuclear) that will boost incentives for zero emission vehicles, give tax incentives to companies in the fossil fuel industry that embrace carbon capture and storage, and work to make the electric grid cleaner.
- The 271 page document outlines actions that can be taken including the SMR nuclear roadmap being undertaken by Alberta, Saskatchewan, Manitoba, and New Brunswick.
- The report highlights the il and gas industry as a key player and encourages it to “do its fair share in contributing to the country’s climate goals.”
- While we have seen support recently for the energy industry because of the war in Ukraine, the government plans to eliminate all inefficient fossil fuel subsidies and develop a plan to “phase-out financing for the fossil fuel sector, including by federal Crown corporations.”
- This is exactly what Justin Trudeau meant when he went to a rally ahead of the 2019 election and said that the oil sands need to be phased out.
- Because of this the plan commits about $2b to “futures funds” for Alberta, Saskatchewan, and Newfoundland to help workers “upgrade or gain new skills to be on the leading edge of the zero carbon industry.”
- Without being too inflammatory, the report suggests displaced oil and gas workers find work in newly emerging hydrogen industries.
- The biggest part and perhaps most eye-watering part of the plan is that it calls for an increase in the carbon tax to $170/tonne by 2030, it currently sits at $50/tonne.
- These taxes are additive in that they apply for each stage of the supply chain. You pay the carbon tax on fuel, the grocery store pays it on heat and power, the truckers pay it on fuel, and the greenhouses pay it for heat and power. At the end of the day, food goes up even more.
- Conservative leadership candidate Pierre Poilievre has not been shy about his support of removing the carbon tax if he forms government.
- In Ottawa at a rally Pierre drew hundreds of supporters to a rally on March 31st before the carbon tax was slated to increase.
- Support and enthusiasm amongst leadership candidates in the Canadian political sphere is rare and what we’re seeing here should not be underestimated.
- The reason for this is because according to the Parliamentary Budget Officer, due to the higher incomes, most households in Alberta, Saskatchewan, Manitoba, and Ontario will see a “net loss” from the carbon tax by 2030 when it hits $170/tonne.
- The Parliamentary Budget Officer is the watchdog that makes sure Ottawa’s finances aren’t funny and is being used to mislead Canadians.
- Lower income households will receive rebates with the $170/tonne price but medium and higher income households will be paying hundreds if not thousands of dollars.
- In Alberta, the PBO expects that lowest-income households could expect to receive up to $246 back in their pockets this year, but highest-income households can expect to pay up to $1,925. In the end, Albertans will end up paying $507 per household on average.
- Fast forwarding to 2030, the PBO calculated that these same households in Alberta could be receiving $660 or paying up to $7,402. The net loss on average would be $2,282 per household.
- In Ontario in 2030, lowest-income households could get back $460 and those with a higher income could pay up to $4,866 for carbon.
- Given the price of food or any other essentials today, ask an Albertan if an extra $500 a year would benefit them today or $150-$1100 in Ontario, the answer is likely yes and given the huge amounts of inflation we’ve seen, this is precisely why raising taxes at this time isn’t a fair or sane option.
- Alberta’s government took proactive measures to blunt the cost of this carbon tax increase by stopping the collection of the 13c / L gas tax on April 1.
- This resulted in gas prices dropping by about 10-12 cents per litre overnight from $1.67/L to $1.55/L. This shows that aside from not refining enough of our own gas, taxes on fuel are what makes gas expensive in Canada.
- Even on the worst day, gas prices in the United States are still cheaper than those in Canada.
- Premier Jason Kenney said, “We are living through 30-year-high inflation… Alberta's government has listened to Albertans who are saying we need to take real action to reduce the cost of living.”
- And on the federal carbon tax and the proposed increases, he said “[the Liberals] want to punish Canadians for filling up their gas tanks, heating their homes, turning on the electricity and living normal lives.”
- There are things that provinces can do and people from BC to Newfoundland need to ask their provincial governments to take similar actions to those taken by Alberta to focus on day to day matters of making life more affordable despite the price increases slated to come for the next 6 years.
- Supplementals:
- The BC government astounded everyone last Friday, when they announced that through ICBC, they would be giving motorists a rebate intended to offset the rising gas prices.
- Premier John Horgan and Minister of Public Safety and Solicitor General Mike Farnworth announced the money, and both reiterated the move is needed because of the ongoing conflict in Ukraine and its impact on global fuel prices. Horgan said the rebate is "absolutely related" to Russian aggression overseas, which he said could continue for quite some time, remarking that "we are not out of the woods yet."
- The government has set aside $395 million to dole out to B.C. drivers — both personal and commercial. Most ICBC customers who had a basic auto insurance policy during the month of February are eligible for the $110 amount. Commercial drivers will receive $165 because, according to Horgan, their expenses are usually higher. Drivers who are registered with the insurance corporation for direct deposit can expect a deposit or credit card refund in May. All other customers should look for a cheque in the mail in June.
- Farnworth said ICBC is in a healthy position to cut the cheques, which also gave two COVID-19 rebates with a combined average of $300 last year. Horgan said there could be more help on the way as provincial officials continue to monitor and respond to the situation abroad and its impact on British Columbians' bottom lines.
- B.C. Green Party Leader Sonia Furstenau said the one-time rebate fails to address the broader issue of affordability, which affects everyone in the province, not just drivers.
- Furstenau said: "People are struggling to pay rent, to pay [their] mortgage or even get a home, to buy groceries, to cover their basic costs. Gas prices are a part of that. They're a symptom of this greater affordability crisis."
- Provincial dollars, Furstenau said, would be better spent to address the lack of public transit in part of B.C. New Westminster Coun. Patrick Johnstone said via social media that giving drivers a rebate one day after TransLink's board of directors approved a fare hike for July 1 sends the wrong message.
- Critics of the NDP government were quick to point out that the provincial government was quick to hand out a gas rebate, but are entering their 5th year of not providing a rebate for renters - which was promised by the NDP back in 2017.
- Ahead of the 2017 provincial election in which the BC NDP came to power, the party pledged to help tenants with a $400 rebate to offset skyrocketing rents. A renters' rebate was again a plank of the B.C. NDP's platform ahead of the 2020 election, with households earning up to $80,000 a year promised $400 a year.
- The issue of affordability is really taking off all across Canada, as inflation and the cost of living has quickly become one of the biggest issues among voters looking to their governments for policies to abate the crunch.
- Meanwhile, ICBC has been under fire not just for the reason for the rebates, but also for how their new no fault insurance model treats cyclists who are hit by cars. Several cyclists who have gotten hit by cars say that ICBC has contacted them saying that the cyclists themselves are on the hook for repairs for the cars that hit them, often while the cyclists are recovering from injuries sustained after getting hit. This is mainly due to conflicting reports between the drivers and cyclists as to who exactly ran the stop sign or red light.
- One of the lawyers for a cyclist who got hit, Joel Zanatta says: “It financially benefits ICBC to find fault against cyclists. They’re riding a bike because they’ve made a choice and they’re being struck by cars. They’re not being compensated, which is shocking. And then in certain cases they’re getting a bill in the mail. It’s appalling.”
- In a statement, ICBC said it thoroughly investigates accidents before determining who is at fault: “In assessing any claim, we review all of the evidence presented to us in order to come to a fair decision. This would include reports from the drivers involved, witness statements and police reports if available.”
- Zanatta, founder of a firm called The Cycling Lawyer, takes issue with the way ICBC deals with cyclists: “They’re doing it in a completely discriminatory fashion,” he said. “They’re regularly finding fault with cyclists where none existed and they’re protecting their drivers.”
- In any case, the news of the rebate will please some while angering others, while others think it misses the point completely. In the end, everyone who buys car insurance will get a bit of money back from the government, and that can be only considered a good thing, as inflation continues to rise.
- Supplementals:
- Alberta, Saskatchewan, Ontario, and New Brunswick are pressing ahead with small modular nuclear reactors.
- We’ve talked about these reactors before on the podcast and the benefits they bring.
- SMRs or small modular reactors generate about 200-300MW power compared to the 1,000MW a traditional reactor generates. The SMRs are able to power about 300,000 homes.
- SMRs are also a benefit to remote regions where power is not easily delivered.
- The first SMR would be built in Ontario with four more in Saskatchewan between 2034 and 2042.
- The reactors are currently expensive costing about $5b for a single reactor but as time progresses the technology will come down in price.
- SMRs also provide a pathway to reduce greenhouse gas emissions and achieve the net zero 2050 target that many governments have committed to.
- In general when people hear nuclear they will think of something like the Chernobyl disaster or other meltdowns or near meltdowns in places like Fukushima or Three Mile Island.
- There’s also the spectre of nuclear disaster as seen in the movies and dramaticized.
- Generation I reactors were the reactors used in the late world war II period to produce the first atomic bombs.
- Generation II reactors are the bulk of generating reactors currently in service.
- Generation III reactors represent any reactor design that will be built going forward. SMRs fall into this category of scaled down or an even newer Generation IV technology.
- Generation IV reactors are a very modern approach to nuclear design and they also incorporate other coolants like liquid metal or molten salt which have the benefit of making them almost entirely unable to meltdown.
- If a meltdown were to occur, the reactor would shut off instead of ejecting radioactive material.
- Some Generation IV designs can also use the depleted fuel from other reactors which can be thought of as using existing nuclear waste as fuel.
- Nuclear technology is progressing both on the fission front and some things may only be a decade or so away from a working fusion reactor which fuses elements like hydrogen to generate power - which would be the ultimate clean fuel.
- This story garnered zero attention in the media but is so important because it is one angle which can be used to meet climate goals.
- It also goes forward to make Canada energy independent which as recent events have shown us is really important.
- On the adoption of the strategic plan, Alberta Energy Minister Sonya Savage said, “This strategic plan marks another important step forward to determine how to best manage and regulate this innovative technology by working with our provincial partners and federal regulators. Should private industry decide to pursue the development of SMRs here, it would offer yet another chapter in Alberta’s ongoing history of responsible energy development and innovation.”
- The report highlights a number of key priority areas including positioning Canada as an exporter of SMR technology.
- The report stresses the need for a strong nuclear regulatory framework focused on health and safety.
- The report says for SMR development and deployment to go forward federal government commitments on financial and policy support are needed for economic benefits across the country including emission reductions.
- The report lays out that a key area is participation from Indigenous communities on public engagement.
- And working with the federal government and nuclear operators on a robust nuclear waste plan.
- This process has been ongoing since December 2019 and Alberta joined last April.
- The provinces are leading the charge yet again in an area that would be hyper-stimulated if the federal government made some noise about this subject.
- It’s a very important subject because with the prices of energy rising that means power rises and most days Alberta is importing power from our neighbours rather than generating enough to meet demand. This means higher prices for those in the province.
- When the NDP came to power in 2015 they made quick work of closing coal power plants or putting a sunset date on them for complete closure or conversion to gas.
- This had the side effect of lowering power generation in the province making prices go up. Combined with high energy prices utility bills have shot through the roof.
- While the NDP of the past have been focused on shutting down fossil fuels, no development of nuclear energy was done in the province between 2015 and 2019.
- A bulk of the energy price problem in Alberta can be traced back to the NDP and their policies.
- In the short term though, before nuclear comes online and energy prices come down, Albertans should look online and sign up for a locked in plan rather than a floating rate energy plan as this provides a great deal of savings.
- Many in the media and those receiving high utility bills may not know that this is possible and can sometimes deliver savings of 30-40% on utility bills depending on the time of year.
- This story got zero coverage this week and it’s important to highlight given how Canada has the potential to be an energy superpower and this is one step in that direction.
- It also needs to be talked about more to if anything normalize nuclear power in Canada as a safe and clean option to reduce energy costs and carbon emissions.
- Supplementals:
Firing Line
- The renovations for Justin Trudeau's cottage just keep going up and up, and taxpayers are on the hook for it. The upkeep and improvement of official residences for the prime minister and other top federal officials comes with a continuing financial cost to Canadians. Taxpayers have now spent at least $11.7 million since 2019 to renovate the “country retreat” for prime ministers at Harrington Lake, in the Quebec hills a short drive from Ottawa. We originally covered this story back in 2020 on Western Context 168, but since then the costs of the renovations have just continued to skyrocket.
- Harrington Lake, the summer home of the Prime Minister, is not the only federal official residence of the government that has been in poor condition. The National Capital Commission, the federal government’s property manager, says the six official residences overall are in “poor” condition. These include the Ottawa properties of 24 Sussex Drive, home of the prime minister; Rideau Hall, home of the Governor General; Stornoway, home of leader of the Opposition; and 7 Rideau Gate, guest house for senior foreign officials. In Gatineau Park, Quebec these include Harrington Lake, as well as The Farm, home of the Speaker of the House of Commons.
- Trudeau has not been living in 24 Sussex Drive, due to a “deferred maintenance deficit” — a polite, bureaucratic term for neglect, as no politician wants to be seen spending money on these homes, and so problems have been mounting over the decades at these properties with no fixes along the way.
- The Harrington Lake renovations have now cost $11.7 million, up $3 million from just 2 years ago. Work involved a new exterior of the main house, new sprinklers and water tanks to supply them, plus the crown jewel: a new “kitchen,” priced at $735,000.
- The documents are emails and cost charts from the National Capital Commission (NCC). Beyond the main house, there are also major renovations to a guest house and the former caretaker’s cottage on the Harrington Lake property — all the buildings have heritage status.
- The NCC said in a statement that “the scope referred to as ‘kitchen’ actually references the entire service area of the main building, which underwent significant rehabilitation. This service area (kitchen, pantries, laundries, storage areas and electrical rooms) is used for both personal and official uses.”
- The documents show how the cost of the job rose from its earliest estimates. Take the “kitchen” job. Originally budgeted at $551,000, it climbed to $648,000, and later to $735,000, the NCC’s figures show. The bill included $52,000 for a design consultant at one stage, though this was before the final cost rose.
- Installing modern sprinklers added more than $200,000. The sprinklers needed a dependable water supply: two new underground tanks, set below the frost line. The problem is that the property is mainly on bedrock. The water tanks ended up costing $355,000.
- The overall cottage repair was once budgeted at $3.5 million, for a building of 8,300 square feet. This rose to $4.4 million, $5.5 million, $5.8 million, and was finally approved in 2019 at $6.118 million. Later, they threw in another million related to security, making the total $7.118 million.
- Heritage advocates have long stressed the importance of keeping the official government residences in good shape, for reasons of history and prestige, and bemoaned the lack of timely maintenance that has led to deterioration. But as the costs of repairs at sites such as 24 Sussex Drive, the official residence of the prime minister, which is currently not used by Justin Trudeau, have climbed, the prospect of making the now-substantial investments needed to refurbish them has become seen as more politically difficult.
- The NCC says it would cost $89.1 million to catch up on all the overdue repairs and maintenance for its six official residences. It says bringing all six up to modern standards (for instance, in accessibility) would cost $175 million.
- Critics, meanwhile, have been loath to see more tax money spent on the properties. The federal director of the National Taxpayers’ Federation, for instance, called the expenses at Harrington Lake “astronomical.”
- Franco Terrazzano said: “This follows a long history of the NCC running up a huge tab on the taxpayers’ expense. It’s coming at the worst possible time as the government is already a trillion dollars in debt. … Every single expense should be under the microscope.”
- The only one talking about the renovations and increased cost to taxpayers over the years have been literally one reporter from the Toronto Star. It's sad to see such a major news story get completely glossed over by the rest of the mainstream media, who really should be covering these stories as they represent a microcosm of the amount of spending money that Trudeau has wasted since forming government in 2015. Had these renos been approved earlier, before his spending induced inflation policies raised the costs of everything, maybe taxpayers would not have to pay so much for Trudeau's homes.
- Supplementals:
Quote of the Week
“This follows a long history of the NCC running up a huge tab on the taxpayers’ expense. It’s coming at the worst possible time as the government is already a trillion dollars in debt. Every single expense should be under the microscope.” - Federal director of the National Taxpayers’ Federation Franco Terrazzano on the mounting costs of the federal residence renovations
Word of the Week
Skyrocket - (of a price, rate, or amount) increase very steeply or rapidly
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Show Data
Episode Title: Renos and Reactors
Teaser: Trudeau releases a plan to cut carbon emissions, the BC government gives back a gas rebate through ICBC, and four provinces are going ahead with nuclear SMRs. Also, the renovation cost on federal government residences continues to skyrocket.
Recorded Date: April 1, 2022
Release Date: April 3, 2022
Duration: 54:44
Edit Notes: ICBC pause
Podcast Summary Notes
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Duration: XX:XX