Finance Minister Bill Morneau addresses an Economic Club of Canada breakfast in Calgary, Wednesday, June 19, 2019. The Liberal government expects to get $500 million a year out of the expanded Trans Mountain pipeline and is promising to spend it all on cleaner sources of energy and projects that pull carbon out of the atmosphere. THE CANADIAN PRESS/Jeff McIntosh

Trans Mountain pipeline could fund $500M a year in clean energy projects: Liberals

The Liberal government bought the existing pipeline for $4.5 billion in 2018

The Liberal government expects to get $500 million a year out of the expanded Trans Mountain pipeline and is promising to spend it all on cleaner sources of energy and projects that pull carbon out of the atmosphere.

Finance Minister Bill Morneau told The Canadian Press in an interview this week that the expanded pipeline is not fodder for negotiating with other parties in the minority government. Rather, he said, it is a crucial piece of the puzzle of financing Canada’s transition to a clean energy economy.

“We purchased it for a reason,” said Morneau. ”We now see how it can help us accelerate our clean energy transition by putting any revenues that we get from it into a transition to clean energy. We think that is the best way we can move forward in our current context.”

The Liberal government bought the existing pipeline for $4.5 billion in 2018, in a bid to overcome the opposition of the British Columbia government to the expansion.

Federally, the two parties with the most in common with the Liberals on climate change both think the expansion should be cancelled. NDP Leader Jagmeet Singh, whose party has enough seats to support the Liberals through any confidence votes, wants tougher climate action but has stopped short of using the pipeline as a line in the sand.

He has suggested that ship has effectively sailed.

Morneau said construction on the pipeline is underway and the decision to go forward has been made, which means there is really no way to use it as a bargaining chip in the minority government.

“My expectation is that we have much common ground between the other parties that have been elected to the next Parliament,” said Morneau.

“We will be seeking consensus on how we can move forward on that common ground. This project we’ve already moved forward on. It’s one that we’ve said that we’re moving forward on, we’ve actually already gone through that process.”

READ MORE: Climate and pipeline are priorities after election: Trudeau

Construction on the expansion is supposed to be done by the middle of 2022. The Liberal platform forecasted taking revenues of $125 million from Trans Mountain Canada in 2021-22 and then $500 million in each of the next two years.

Eventually Morneau said the plan is to sell it back to the private sector and all of the revenues from the sale will then go to clean energy development and other climate change action projects.

The one specific promise the Liberals made that they connected to pipeline revenues was a $300-million annual fund for natural climate solutions including tree planting, as well as conservation and restoration of forests, grasslands, agricultural lands and coastal areas.

Construction on the pipeline was halted in September 2018, after the Federal Court of Appeal overturned federal approval citing insufficient environmental and Indigenous consultations.

Cabinet undertook new rounds of both and approved the expansion a second time in June.

Construction on the pipeline then resumed in August, starting with work on the marine terminals in British Columbia and pumping stations in Alberta. The first 50 km of actual pipeline will start being laid in the Edmonton area shortly, a spokesperson for Trans Mountain Canada said Wednesday.

Thus far, more than 2,200 workers have been hired.

The pipeline runs from a terminal east of Edmonton to a marine terminal in Burnaby, B.C. The expansion will see a second pipeline built roughly parallel to the first that can carry almost twice as much crude oil every day.

There is however a new federal court challenge underway from Indigenous communities who argued the secondary consultation process undertaken by the government earlier this year was a sham.

READ MORE: Opposition to Trans Mountain won’t change, B.C. minister says

READ MORE: Federal appeals court approves six First Nations challenges of Trans Mountain

Mia Rabson, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

New utility adjustment policy approved for Sylvan Lake residents experiencing a leak

Council approved the new Leak Adjustment Policy at its meeting Monday night

Sylvan Lake students indulge in pancakes for Shrove Tuesday

Shrove Tuesday is known as a day of indulgence before fasting for Lent

These Kids Were Made For Singin’ and That’s Just What They’ll Do!

HJ Cody prepares for its fall musical “Peace, Love and Music: A 1960s Music Revue”

Sylvan Lakers heading to North American Indigenous Games

A coach and four players will be taking the trip to Halifax, N.S. in July to compete in lacrosse

Sylvan Lake welcomes two new doctors

Dr’s Biana Manchik and Andrew Schwartz are the two new doctors practicing at Sylvan Medical Center

VIDEO: Feds warned agricultural sector near ‘tipping point’ due to blockades

Canadian Federation of Agriculture points to lack of propane and feed due to Coastal GasLink dispute

ReProm: Second shot for LGBTQ Calgarians to enjoy milestone as themselves

Centre for Sexuality, a sexual health not-for-profit in Calgary, is holding its first ReProm fundraising gala

Calgary woman charged in aggravated assault of 11-month-old daughter

The girl was brought to the Alberta Children’s Hospital in Calgary with a broken arm

Little-used part of Constitution led to different carbon tax rulings: experts

On Monday, the Alberta Court of Appeal ruled 4-1 that the carbon tax is unconstitutional

Alberta legislature resumes: Focus on jobs and bill to punish protesters

Kenney’s United Conservative government was elected last spring on a mandate to create jobs

Child in hospital following fatal crash that killed father, sibling on B.C. highway

The single vehicle crash occured near Kamloops on Highway 5A

Province commits long term to 4-H in Alberta

10-year funding commitment will sustain re-structured 4-H organization

Do you talk to your spouse about money? 42% of Canadians don’t, poll suggests

Politics, sex, religion top list of taboo subjects for Canadians

Trudeau revisits blackface embarrassment during Black History Month

Photos and a video of Trudeau wearing makeup to darken his skin surfaced during last fall’s election campaign

Most Read