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Even though the federal government has walked back its target for a net-zero power grid by 2035, its clean electricity regulations are still unconstitutional, Alberta says.

The Liberals issued a news release Tuesday celebrating that 85% of Canada’s electricity is generated from clean sources such as hydropower, wind, solar, and nuclear.

The release confirmed that the Clean Electricity Regulations finalized on Tuesday aim to support Canada’s target of a net-zero economy by 2050. This is a notable change in stance from the federal government’s previous pledge to reach net-zero by 2035. 

In a joint statement, Alberta Premier Danielle Smith, Utilities Minister Nathan Neudorf, and Environment Minister Rebecca Schulz said despite the pivot, the regulations themselves are still unconstitutional as they intrude on the province’s domain.

“After years of watching the federal government gaslight Canadians about the feasibility of achieving a net-zero carbon grid by 2030, we are gratified to see Ottawa finally admit that the Government of Alberta’s plan to achieve a carbon-neutral power grid by 2050 is a more responsible, affordable, and realistic target,” the statement said.

However, the praise was short-lived, as the statement continued by saying that the final regulations remain unconstitutional as they infringe on exclusive provincial jurisdiction. It added that the interim targets for 2035 will still make electricity unaffordable for Canadian families.

Federal Environment Minister Steven Guilbeault touted that the Liberals’ regulations would cut energy bills, create more jobs, and save up to 55 million cars’ worth of tailpipe emissions from polluting Canadian air.

The Alberta government previously used the Sovereignty Act to shield the province from the Liberals’ mandated net-zero electricity grid by 2035.

The act was invoked following a national advertising campaign launched in 2023 by Alberta to warn Canadians about the federal net-zero emissions goal. Alberta similarly launched another nationwide advertising campaign against the federal cap on the oil and gas sector in the subsequent year.

“Alberta will therefore be preparing an immediate court challenge of these electricity regulations that we fully expect to win,” read the statement.

The Alberta government proposed that the Liberals instead abandon any attempts to regulate Alberta’s provincial power grid, which would interfere with its provincial governance.

A comprehensive report from the Canada Electricity Advisory Council highlighted that the 2035 deadline for a net-zero grid was “unrealistic and unattainable.” 

It showed that the energy transition could cost between $1.1 trillion and $2 trillion. The report recommended more flexibility and a renewed goal for carbon neutrality by 2050.

The Liberals cited the Canada Electricity Advisory Council’s study in their press release, among others, saying that they highlighted that clean electricity could lower bills and reduce reliance on fossil fuels.

Smith previously warned that the federal regulations would drive investment out of Alberta, making power more expensive. She also warned that a lack of baseload power from natural gas would lead to increased blackouts during extreme weather conditions. Alberta’s grid had seven power alerts during the cold months of 2022 and three in the summer of 2023.

The recently released Fall Economic Statement earmarks $35 billion in tax credits for clean electricity available to provinces and territories.

The statement said that an energy roadmap to achieving net-zero by 2050 will be completed by the end of 2026.

It also revealed a $62 billion deficit, over 50% more than the limit previously set out by Chrystia Freeland, with no plan to balance the budget.

The Liberals highlighted that all G7 countries have committed to achieving net-zero economies by 2050. The federal government said $60 billion in support would be available for electricity operators to build 21st-century electricity grids. The Clean Electricity Regulations do not apply to Canada’s territories.

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