Rural Alberta communities may lose tax revenue from renewable regulations

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Alberta cities with views of the Rocky Mountains risk losing a major source of tax revenue as a result of the province’s new proposal to ban wind development in those areas.

But the reactions have been mixed. Some municipal districts say they are willing to lose revenue from renewable energy projects, while one region says the regulations will leave them “in the poor house forever.”

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The proposed provincial rules outline a roughly 35-kilometre buffer zone along Alberta’s Rocky Mountains where no wind projects will be permitted; The regulation, according to the province, will protect so-called “pristine visual landscapes.”

Some rural municipalities have become increasingly reliant on renewable energy projects as a source of tax revenue. Currently planned solar and wind projects combined between now and 2028 would provide $277 million in annual tax revenue to municipalities, according to an analysis by Business Renewables Centre-Canada.

Fearing the worst is Cardston County in southwestern Alberta, where such planned renewable energy projects would provide $7.7 million in tax revenue, nearly 97 per cent of its current operating revenue.

“We’re hoping to be somewhat self-sufficient and rely on our own means to get it done,” Cardston County Judge Randy Bullock said. “Our biggest obstacle now is that we’re basically going to be in a poorhouse forever.”

The Alberta government’s no-go zone divides Cardston County, placing three divisions within the no-go zone and the remaining four divisions with few restrictions on wind project development.

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Counties differ on renewable energy

Cardston County has been working to attract renewable energy investments after lagging behind other counties for years. More recently, it took advantage of a rule that allows municipalities to create local incentives for businesses by creating a renewable energy tax incentive, which Bullock said the county is reviewing in light of provincial regulations.

Bullock also worries the community will be divided over the issue. “We understand that the government sets the rules, but now we have to deal with the consequences of a divided public,” she said.

But Pincher Creek Municipal District officials are willing to let their books take a hit to keep wind projects out of their sight. Of the projects planned for the area over the next four years, Pincher Creek would collect $1.4 million in municipal taxes, about 9.5 percent of current operating revenue.

“We as a council, along with the people, have said no,” said Pincher Creek MD Councilman Rick Lemire. “We’re turning down tax money, and a considerable amount of tax money, to say no.”

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Lemire said what bothers his community the most is that the transmission lines impede views of the area. Oil and gas investments in the area have been dormant in recent years, she added.

“We just have to be a little more prudent in our spending and make things a little tighter.”

Renewable energy had a large majority of support in the Pincher Creek region in 2017, Lemire said, with about 70 percent of the population surveyed in favor of incorporating more development. More recent polls have shown that support for renewable projects has plummeted to around 40 percent, she said.

Alberta’s rural municipalities have questions for the minister

Reaction since the province delineated its buffer zones has been equally mixed, said Paul McLauchlin, president of the Rural Municipalities of Alberta (RMA).

“Just arbitrarily saying that 35 kilometers is off-limits upsets some of my members, and I have some members on the other side who are grateful for that,” McLauchlin said.

The RMA will hold its annual convention this week, where McLauchlin hopes members will draft an application to send to Minister for Affordability and Public Services Nathan Neudorf.

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“A lot of our people are saying, ‘Is there a way we can go a little further and look for a less draconian measure and look for something that has at least some flexibility built in?’ “McLauchlin said.

In a statement to Postmedia, Neudorf said Alberta municipalities will continue to benefit from existing renewable energy projects and will benefit from “future responsibly developed projects.” He added that only new wind projects are affected by the buffer zone.

‘Big picture’ needs to be considered: Cardston County judge

With Alberta’s renewable energy regulations and radical revamp of its electricity market still in development, it’s not yet clear how future renewable projects in the province may be affected, said Jorden Dye, director of BRC-Canada.

“It is difficult to say whether projects at this time will be blocked completely or will face additional evaluation criteria.”

In the meantime, Bullock asks his constituents to understand the ramifications. The county is home to the village of Mountain View, which draws some of its water from wells and needs a water treatment facility, he said.

“I can understand that no one wants to look at (wind turbines), but they don’t understand the whole picture. . . Do you want to have drinking water in your community, yes or no?” Bullock said.

“We’ll have to say no because we can’t build it for them. “It’s that black and white for us.”

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