WESTLOCK — Westlock County's resolution to address the challenges facing Canada’s agriculture sector from the Inflation reduction Act is moving on to the provincial stage, as it will now be heard by the Rural Municipalities of Alberta (RMA) membership at the fall 2023 convention.
Westlock County’s resolution passed with unanimous consent at the RMA Zone 3 meeting on Sept. 25, allowing it to move on to the fall convention from Nov. 6-9 in Edmonton.
The semi-annual RMA convention is attended by the association’s 69 member municipalities, associate members, the Premier, various members of Cabinet and other provincial officials.
During their Sept. 12 meeting, county councillors first approved the resolution, which calls on the RMA to advocate to the provincial government to engage in a meaningful dialogue with the federal government in order to address the challenges posed by the Inflation Reduction Act.
It also calls on the RMA to advocate for the creation of a joint task force or committee consisting of representatives of the provincial and federal governments, industry stakeholders, the RMA itself and other agricultural associations.
The purpose of this task force/committee will be to evaluate the impact of the Inflation Reduction Act on Canadian producers and propose necessary policy changes to enhance the competitiveness and sustainability of Alberta’s ag industry.
As explained to Westlock County council on Sept. 12, the Inflation Reduction Act is a “monumental” piece of legislation passed in August 2022 that included more than $300 billion in tax credits, grants and loans.
Observers have noted the act provides a distinct and significant advantage to U.S. producers over their Canadian counterparts. “The IRA has posed very real challenges not only to Alberta producers, but Canadian producers and specifically producers in Westlock County and the region,” intergovernmental advisor Jared Shaigec told council.
Once council approved this resolution, it went on to the RMA Zone 3 meeting, where it was presented by reeve Christine Wiese. Incidentally, Zone 3 includes approximately 70 members/delegates from 13 rural member municipalities.
In her presentation, Wiese said Alberta has the potential to be a leading supplier of alternative fuels like biodiesel, but Alberta producers must first be in a position to be competitive in the global marketplace. Part of the response to counter the effects of the Inflation Reduction Act must include strategic investments and other financial supports.
Global production of ‘cleaner’ fuel reached at least 80 million gallons in 2022 — an increase of 200 per cent from 2021 — and the biofuels industry is on track to reach roughly eight billion gallons annually by 2030. As noted by Wiese, these markets will be closed to Alberta without a strong policy framework.
She also pointed out that the Producer’s Tax Credit, which is being introduced through the Inflation Reduction Act and is set to come into effect Jan. 1, 2025, will “almost certainly” result in Canadian-grown feedstocks being exported to the U.S.
“With raw materials such as feedstocks being exported, Alberta and Canada stand to lose out on the economic benefits associated with value-added industries, such as processing facilities,” Wiese said.
She cited the example of the Calgary-based fuel distributor, Parkland, and its recent decision to cancel plans for a standalone renewal diesel complex in Burnaby, B.C., due to the competitive advantage offered by the Inflation Reduction Act.
“The purpose of this resolution is to push this provincial government to work with the federal government to ensure that two of Alberta’s main sectors — energy and agriculture — remain strong, viable and vibrant, now and into the future,” she said.
