• $100 million in 2009-10 and $800 million over three years for carbon capture and storage projects, as part of Alberta’s $2-billion total commitment.
• $95 million in expected industry payments to the Climate Change and Emissions Management Fund to support projects or technologies to reduce greenhouse gas emissions.
• An additional $77 million for other climate change initiatives.
• $30 million in 2009-10 for reclamation of depleted and abandoned oil and gas well sites.
• $55 million for biofuel initiatives for the next two years.
• $102 million for environmental management, including approvals, compliance, and enforcement.
• More than $22 million in operating support for the Water for Life strategy, plus
  $100 million in capital support under the Capital Plan.
• $15 million to support Alberta’s Land-use Framework, doubling last year’s funding.
• $381 million over two years for new or upgraded infrastructure in the Fort McMurray area.

Edmonton... The Alberta government has reinforced its commitment to responsible development in Budget 2009 with significant funding to develop energy resources in a more responsible way, provide stronger environmental protection and support sustainable growth.

Developing Alberta’s energy resources in a responsible way
The government has strengthened its focus on environmentally responsible development with funding for large-scale carbon capture and storage projects, reclamation of abandoned oil and gas well sites, and the development of renewable energy.

“Budget 2009 highlights our investments in clean, responsible development, which are focused on significantly reducing the environmental footprint of the energy sector,” said Mel Knight, Minister of Energy. “This is the key to sustained economic prosperity that will come from implementing the Provincial Energy Strategy.”

The government has allocated $100 million for carbon capture and storage projects in 2009-10 — the initial installment of the province’s $2-billion commitment announced in July 2008. A total of $800 million over three years is included in the 2009-12 Capital Plan.

Proposals to capture, transport and store carbon dioxide are currently under review, and support for three to five commercial scale projects will be announced by June 30. These projects are expected to reduce carbon dioxide emissions by five million tonnes annually starting in 2015 — which is comparable to taking one million vehicles off the roads each year.

Alberta’s commitment to reduce greenhouse gas emissions through carbon capture and storage technology was recently recognized with an award for leadership and innovation from the Aspen Institute, a U.S. energy and environment organization.

Up to $30 million will be allocated in 2009-10 to support reclamation efforts of older, depleted and abandoned oil and gas well sites. In addition, $13 million — supported fully by an industry levy to the Energy Resources and Conservation Board — will be allocated to the Orphan Well Abandonment Program. This funding will address issues related to the footprint of the energy sector, and support significant activity by service rig and construction crews to keep Albertans working.

An additional $55 million for biofuel initiatives will be committed in 2009-10 to support the development of renewable energy and offer additional economic opportunities for rural Alberta and the agriculture and forestry industries. Clean energy production is a key objective of the Provincial Energy Strategy, and this funding will help produce the capacity needed to meet Alberta’s Renewable Fuels Standard of five-per-cent ethanol in gasoline and two-per-cent bio-diesel by 2010.

Supporting sustainable growth and environmental protection
In Budget 2009, the Alberta government reinforces its commitment to environmental sustainability with funding to implement the 2008 Climate Change Strategy and renewed Water for Life strategy and to strengthen support for environmental management.

“Budget 2009 reflects our on-going commitment to taking action on climate change and continuing to implement the principles outlined in Water for Life,” said Rob Renner, Minister of Environment. “No matter how uncertain the economic times, Albertans can be confident that the Government of Alberta will continue to balance sustainable growth and protection of what we all hold dear — our environment.”

"This year’s budget provides an anticipated $95 million in payments from industry to the Climate Change and Emissions Management Fund, which will support projects or technologies to reduce greenhouse gas emissions in Alberta. An additional $77 million is allocated for climate change initiatives, which includes $52 million for projects under the Canada ecoTrust for Clean Air and Climate Change as well as funding for a consumer rebate program to help Albertans purchase greener, more energy-efficient products and services. Further details on the program will be released this later this spring."

More than $22 million is allocated across government this year in operating support for the Water for Life strategy. In addition, $100 million in capital support is included this year in the 2009-12 Capital Plan for Water for Life projects.  Water for Life initiatives in 2009-10 include finalizing and implementing the provincial wetlands policy, reviewing the water allocation and management system, and expanding water monitoring, evaluation and public reporting and cumulative effects management.

The Alberta government has also allocated $102 million for environmental management in 2009-10, which includes approvals, compliance, and enforcement activities to reduce and manage cumulative effects of activity on the environment.

A new approach to managing oil sands regions
In addition to other capital commitments in the oil sands regions, Budget 2009 provides $210 million this year and $171 million the following year to provide new or upgraded infrastructure in the Fort McMurray area, including a new bridge over the Athabasca River, and new interchanges at Thickwood Boulevard and Confederation Way.

This follows recommendations developed in Responsible Actions: A Plan for Alberta’s Oil Sands, which calls for timely investment in infrastructure in oil sands regions. The comprehensive 20-year strategic plan, released in February, contains strategies to reduce the environmental footprint, optimize economic growth, encourage innovation in science and technology, and increase the quality of life around Alberta’s oil sands.  The plan also supports a proactive approach in fostering relationships with First Nations and M�tis communities.

“The 20-year strategic plan is the most comprehensive oil sands planning done to date,” said Treasury Board President Lloyd Snelgrove. “It builds on existing Alberta government policies, program and initiatives, in particular the Provincial Energy Strategy and Land-use Framework, and forms a new, more effective provincial and regional approach to managing the oil sands regions.”

Funding support doubled for Alberta’s Land-use Framework
Funding for the Land-use Secretariat, which supports Alberta’s Land-use Framework, will more than double in 2009-10 to $15 million.

The framework sets out an approach to better manage public and private lands and natural resources to achieve Alberta's long-term economic, environmental and social goals. The Lower Athabasca Region Land-use Plan, the first of seven regional plans to be developed under the framework, will be completed in 2010.

“Funding to implement the Land-use Framework is a priority,” said Ted Morton, Minister of Sustainable Resource Development. “With regional plans in place we will be in a good position to manage our future growth and development, and their impact on our landscapes and resources.”