Election 2024: All-of-the-above energy strategy, no changes to royalties: New Democratic Party

 

Editor’s note: Pipeline Online has put out requests to conduct similar interview with the Saskatchewan Party, New Democratic Party, Buffalo Party, Progressive Conservative Party, Green Party and Saskatchewan United Party and Progress Party. Similar questions are asked of each party. These will likely be the most in-depth stories on energy policy you’re going to see in this election. At the end of the interview, each of these pieces includes the verbatim text from that party’s policy platform with regards to energy.

REGINA – The New Democratic Party is proclaiming an all-of-the-above approach when it comes to energy policy, with regulatory stability being an important part of that. Pipeline Online spoke to NDP Energy Critic Aleana Young at length by phone on Oct. 10 regarding what an NDP government would do on the energy front.

Young is a small business owner, with a cheese store in the heart of Regina, where she has been MLA for Regina-University. Her constituency boundaries have been redrawn, so she is running in Regina-South Albert. Previously Young worked in the oilpatch, handling communications for the Aquistore project that was run by the Petroleum Technology Research Centre.

Asked what the NDP’s primary energy policy would be, she said, “I think it’s consistent with what you’ve heard us say for the last four years, when it comes to critical industries in Saskatchewan, like oil and gas, like mining. We’re going to take an all-of-the-above approach when it comes to the energy sector. We’ve got a plan to attract new investment and create new jobs. I’m sure you heard us talking about it; no tax increases for a four year term, freezing the small business tax rate and startup loans to help more people start small businesses. This is about providing stability and reliability to big industry and opportunity to small entrepreneurs.”

Multilaterals

In the 2024 budget, Saskatchewan Party government brought in a multilateral well incentive that provided a dramatic reduction in royalties down to 2.5 per cent on up to the first 16,000 cubic meters, or 100,600 barrels of oil on new wells of this type. It’s the largest change in oil royalty structure in two decades, the result has been substantial adoption of a form of drilling. Would the NDP keep it or do something different?

Young replied, “We would keep it. We have no plans to change any of the tax or royalty structures for any industries in Saskatchewan, period.”

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Oil production goals

What is the NDP’s goal for oil production in Saskatchewan at the end of a four-year term, given it’s currently 454,000 barrels per day? Young said, “Absolutely, we need to increase production in Saskatchewan. As you pointed out, oil production has been flatlined under this government, and we need more production. We need more production in Saskatchewan. Not only is it important to the provincial economy, it’s important to the bottom lines of families across the province. It’s something we support, and it’s part of our commitment on the economy, in addition to not raising taxes and providing that stability, we want to work with industry.

“It’s why we’ve proposed having, day one, an industry of business leaders roundtable, The best solutions, the best opportunities, the best innovation doesn’t come dictated from Regina out to the community. It’s built with industry. It’s built with business leaders, and it’s built with community across the province. And it’s a critical part of what our hopes are for a strong economy here in Saskatchewan.”

Young did not provide a specific number for a production goal. But she did add, “I think 600,000 is a laudable goal right now. We’re not seeing any progress to getting there, and I think that’s something that any government, Sask Party, NDP or Buffalo Party should be working towards.”

Saskatchewan has only drilled around 10 natural gas wells over the last 10 years. We used to drill 2,318 a year. Does the NDP see any way of bringing back gas production?

(Editor’s note, the question was originally asked as 2,600 natural gas wells per year, but it turns out the number was 2,318 natural gas wells drilled in 2003.)

Young said, “I don’t have a clear and thoughtful answer for you on this. I think the more that we can produce in Saskatchewan, whether it’s oil, whether it’s whether it’s targeted gas, whether it’s canola, the better it is for the economy, regardless of regardless of source. In particular, when it comes to the energy sector, I think what you’re going to hear us, the talk we’re going to be talking, the walk that we’re going to be walking, is that energy security is job security. So ,the more that we can do to ensure that Saskatchewan has that energy security, the better it is for our economy, and the better it is for jobs in Saskatchewan.”

Potash

Former NDP Energy Minister Eric Cline released a book last spring entitled Squandered: Canada’s Potash Legacy. In it, he makes the case for reevaluating potash royalties in Saskatchewan, suggesting a lot of money is being left on the table. With several parties offering substantial tax cuts in their platforms, including the NDP where will the money come from? Will the NDP be looking at the royalty structure for potash, oil, lithium or helium?

Young said, “No, we will not be.

“When it comes to the question of potash, in particular, there’s only one party that has actually sown uncertainty in this sector, and it’s the Sask Party who raised potash taxes by $120 million.

“I understand how important it is for industry to have stability and predictability, in particular in the mining industry, so we will not be increasing potash royalties, lithium oil and gas. Full stop.

“When it comes to the question of our election platform and our costing, we fundamentally, and you’ll have heard Carla say this, you can hear me say this 1000 more times, fundamentally, we do not have a revenue problem in Saskatchewan. We’re a province of 1.25 million people, and we spend about $20 billion a year. We spend more per capita for the worst outcomes in the country, full stop. We’re in last place when it comes to healthcare, last place when it comes to education, last place when it comes to the economy. It’s not a revenue question. It is very possible to get out of last place, in particular, the economy on healthcare and education without raising taxes on Saskatchewan people and businesses.”

While Saskatchewan does not yet have any lithium production, its royalty structure is based on posh royalties, and the lithium royalty right now is three per cent. What is the NDP’s approach on lithium?

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Young said, “I think lithium, like any mineral, like any resource in Saskatchewan, we’re incredibly blessed with the opportunities that we have above ground, in the subsurface. We need to be exploring all of these opportunities. It is fundamentally part of our key message and our energy policy, which is not to be ideological about any of this. It’s to be pragmatic. It’s to take an all-of-the-above approach when it comes to growing our economy and growing opportunities for innovation and increased production, regardless of what the sector is.”

Does the NDP have any helium strategies? Young recalled her previous work with the PTRC and speaking with someone from the Ministry of Energy and Resources about helium around 15 years ago. That person told Young to expect to hear a lot more about helium in the coming decades.

Young said, “I think it’s an immense opportunity for Saskatchewan. But again, I’m not here as a technical expert. I think there’s huge potential, but those are problems that are not best solved by government. Those are best solved by folks in the field, by researchers and by innovators. I think it’s a great opportunity. But you know, fundamentally, so many of these challenges aren’t going to be solved by eggheads like me sitting in Regina. It’s going to be solved by people in the field.”

 

Power generation

What is the NDP’s stance on the federal Clean Electricity Regulations? Young replied, “They are too fast, too far for Saskatchewan. They’re not on, for Carla Beck and the NDP. And fundamentally, they’re not on for Saskatchewan.”

Asked if there was anything they would do against it, she said, “I think we’ve been fairly vocal with all federal parties, with the province, about this. This is a one of the areas where you see agreement across, I believe, all party lines in Saskatchewan, because it doesn’t pass the head nod test for people.”

She continued, “Nobody’s going to look at the Clean Electricity Regulations and think, ‘Yeah, as they were introduced, this is fundamentally practical and achievable for Saskatchewan in the in the timelines that were put out.’

“This has been, from day one, we’ve been consistent on this. It’s too far, too fast for Saskatchewan, and when it does come to potential future supply mix for Saskatchewan, the federal government has a significant role to play, not in dictating top-down policy, but in stepping up to the plate with some funding.”

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Nuclear

The biggest threat to nuclear development in Saskatchewan is not technological or even financial. It’s changing government, and a government that would say that it doesn’t want to do it. A similar situation happened in British Columbia with the Site C Dam project, where an incoming NDP government was initially opposed to the project and put the brakes on, before ultimately continuing onto completion. As the Scott Moe Saskatchewan Party government has made a strong push to build nuclear reactors, would the Saskatchewan NDP continue on that path or a different path?

Young said, “You and I have talked about this a number of times and, again, this is not an answer that has changed from us. We are open to SMRs, but like with any major spending commitment, we have to get it right. If SMRs can be proven to be a good, cost-effective way to generate power in Saskatchewan, absolutely, we’re open to them playing a role in our grid in the future.

“And we’ve been clear on this. We’ve been consistent on this, and we’re very prepared to look at this and make a yes/no decision by 2027 and we’re going to ensure that that decision is made with communities, made with people across the province, and made ensuring that there is good value for money.

“This doesn’t mean it’s a race to the bottom, but when we’re talking about potentially doubling the provincial debt, that is a very important conversation, and that is not one that should just be made for political expediency. This is too important a decision to not get it right, and I think that’s a position that we have held consistently. That’s a position we’re comfortable with, and I believe that’s where the majority of people in Saskatchewan are.

“People are very comfortable with this as an opportunity, but of course, they want respect, they want accountability, and they want transparency shown to their tax dollars when we’re talking about potentially doubling the provincial debt.”

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Young added, “We’ve asked questions about this in terms of, like why we’ve gone for it with technology selection before we have a site before any of those things. And I think this points to not a criticism of the potential of nuclear power, but a criticism of this government is these can’t be decisions just made to try and play gotcha politics, because, this is not a wedge issue with us, and it’s not a wedge issue with Saskatchewan people.

“But we have to be actually thoughtful and responsible when it comes to billions and billions and billions of taxpayer dollars, and the security and affordability of power in Saskatchewan. It’s critical to our economy. It’s critical to public trust. Is critical to the health of the Crown.

“This is not an answer that’s changed, no matter how hard the Sask Party wishes it had.”

 

Power generation mix

If the NDP forms government, how will Saskatchewan’s power mix look 10 years from now?

Young said, “We are committed to affordable, reliable, and sustainable power in Saskatchewan in the broadest sense. We are going to have, under a Carla Beck government, you can expect to have an all of the above approach when it comes to power generation that will include traditional generation, like we see right now, that will include natural gas, that will include wind, that will include solar, that may include SMRs. Like I said, we’re committed to making a go/no go decision on that, evaluating that if we’re given the privilege to serve Saskatchewan next government, by 2027. We’re not interested in kicking the can down the road. We’re interested in being responsible, being reasonable, being pragmatic and non-ideological with these choices and making the best decisions, which fundamentally for a jurisdiction like Saskatchewan, that has such a bounty of opportunities, we’re going to take an all-of-the-above approach.”

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Twice Young mentioned 2027 as a decision point on nuclear, while SaskPower and the Saskatchewan Party government have both said that decision will be made in 2029. Asked to elaborate, Young said, “So I appreciate there are regulatory frameworks, and there’s work that is ongoing, undertaken by the Crown with the federal level of government, and that’s really important. But what we see from this government is SMRs trotted out as both a carrot and a stick repeatedly, with the premier saying, one day, ‘Yeah, we’re going forward this with this, 100 per cent,’ and then we’ve seen the minister have to come out and say, ‘Well, you know, we actually haven’t made a decision on this.’

“Fundamentally, it’s unfair to the communities who are looking at this as an opportunity for job security, for economic viability in the future, and there’s no reason to play politics with this for another five years if we have, great, thoughtful, dedicated people in the Crowns and across government who are looking at the options for power generation and for Saskatchewan’ energy future. We can’t be kicking the can down the road. We need, need to make some good decisions for the future Saskatchewan, and we want to do that in a very reasonable time frame.”

There’s a federal deadline to shut down conventional coal-fired power generation by 2030, but Saskatchewan does not yet have enough alternative power to replace it. And the soonest a nuclear reactor is expected to go online is 2034. Asked about the NDP’s thoughts on coal wind, solar, and natural gas power generation, Young said, “The 2030 deadline is something we’ve known about for a decade, and this government, the current Sask Party, has done nothing.”

When asked if the Moose Jaw and Aspen natural gas-fired power stations counted, she said, “That’s not going to be sufficient to replace all the units of Boundary Dam and Shand.”

So would they keep running coal past 2030? Young said, “I think we need to actually make some decisions, and have some real conversations with the federal government, whoever that is, about what the options are for Saskatchewan, and what we can do to ensure, again, both energy security; ensuring that we are taking our responsibilities when it comes to things like reducing emissions, taking those seriously, but we can’t. You know, this is part of my frustration with the government’s politicking on SMRs, in particular. They’ve put all of their eggs in the nuclear basket, which is not going to be ready by 2030.”

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Natural gas power

Would the NDP build out more natural gas plants like the forthcoming 370 megawatt Aspen Power Station near Lanigan? Young said, “Absolutely, there’s a role for building natural gas plants in Saskatchewan. There’s a role for building out renewables, backed by natural gas as reliable baseload power. And I think there are opportunities, in limited circumstances, to be looking at resetting relationships with Manitoba Hydro. Fundamentally exclusively relying on imports is is not a solve for Saskatchewan energy security going forward, but we need to be, you’ll hear say this again, we actually need to be taking an all-of-the-above approach when it comes to ensuring that we can keep the lights on and keep power rates affordable and power reliable in Saskatchewan for the next 20, 30, 40, 50 years.”

Would the NDP continue with SaskPower’s current plant to add a further 3,000 megawatts of wind and solar to the grid by 2035? Young said, “Absolutely, we would continue to build out renewable aggressively. We know it doesn’t provide baseload power. There is still a great role and a great opportunity for renewable power, for intermittent generation, and the jobs and economic activity that comes along with it.”

But it would be backed by natural gas, she said, pointing out that in Scotland, for instance, wind power generation is backed by natural gas and biomass.

In closing, she said, “This is essential to certainly, the security and reliability of power for families, farms and small businesses across Saskatchewan. But this is essential for our economic growth. We need reliable, affordable and increasingly sustainable power, and we need to be taking a fundamentally non-dogmatic, pragmatic approach when it comes to energy policy, and when it comes to power generation, things like the carbon tax, things like the Clean Electricity Regulations, those aren’t on for Carla Beck and the Saskatchewan NDP, and they’re not on for Saskatchewan. And if we’re given the privilege of forming government in October, what the people of Saskatchewan can expect from us is a common sense, pragmatic approach that’s looking at all of the options and we’ll be taking in all-of-the-above approach when it comes to energy, when it comes to power generation, and when it comes to all of the economic opportunities that this represents for our province.”

 

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Pipeline Online is publishing verbatim all the relevant energy-related content in each party’s policy platforms. This is what is published in the NDP platform, which you can download it in its entirety here. Only bullet points related to energy are reproduced here. The terms “oil” “natural gas” “potash” “critical minerals”  “SMR” “nuclear” or “electricity” are not referenced within the document.

 

Commitments for change

• Cut the gas tax on Day 1, saving the average family more than $350 in the first six months.
• We will immediately suspend the gas tax on Day 1 of government and keep it off for six months. This will save you money every time you fill up your tank.

 

A Strong and Growing Economy

• Introduce a new Saskatchewan Economic Growth Incentive Program that will improve on the existing tax incentives and provide a PST rebate on construction costs for facilities that process our resources at home, creating good jobs.
• Freeze the small business tax at one per cent.
• Increase funding for short-term training programs to get more Saskatchewan people working quickly in in-demand sectors.
• Establish a business roundtable with employers and workers across all sectors to address labour force challenges and build a strong and diversified economy.

Protecting our Environment

Commitments For Change

• Invest dollars through climate initiatives into rapidly building out renewable power, energy efficiency retrofits, and lower energy costs for families.

 

 

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