On August 3, 2023, the Government of Alberta enacted the Generation Approvals Pause Regulation, which prohibited the Alberta Utilities Commission (“AUC”) from issuing approvals for renewable energy projects between August 3, 2023 and February 29, 2024.[1] The stated purpose of the pause on approvals (resulting in an effective moratorium on future wind and solar development) was to develop and implement policy and regulatory changes to clarify the rules for renewable energy projects.[2]

The Government of Alberta directed the AUC to inquire into and report on:

  • Considerations on development of power plants on specific types or classes of agricultural or environmental land;
  • Considerations of the impact of power plant development on Alberta’s pristine viewscapes;
  • Considerations of implementing mandatory reclamation security requirements for power plants; and
  • Considerations for development of power plants on lands held by the Crown in Right of Alberta.[3]

The AUC inquiry into renewable energy projects was separated into two modules: Module A examining land issues, and Module B looking at the impact of renewables on the generation supply mix and electricity system reliability.[4]  The AUC also considered the participation of municipal governments in the renewable power application process.

The Module A report has now been submitted to the Minister of Affordability and Utilities (the “Minister”). Module B is due to the Minister by the end of March 2024.[5]

With the pause now having been nominally lifted, the Minister has sent a letter to the AUC[6] advising of the Government of Alberta’s intention to advance the following policy, legislative and regulatory changes before the end of 2024:

Agricultural Lands: The AUC will follow an “agriculture first” approach when evaluating proposed renewables development on agricultural lands. Alberta will no longer permit renewable energy projects on Class 1 land (soils with no significant limitations in use for crops) and Class 2 land (soils with moderate limitations that restrict the types of crops or require moderate conservation practices) unless both crops and livestock can coexist with the proposed renewable energy project.

Reclamation Security: Developers of renewable energy projects will be responsible for reclamation costs by posting a bond or providing security. Appropriate security amounts and standards will be determined by the Ministry of Environment and Protected Areas in consultation with the Ministry of Affordability and Utilities. The reclamation costs will be provided directly to the Government of Alberta or may be negotiated with landowners if sufficient evidence is provided to the AUC.

Viewscapes: Buffer zones of a minimum of 35 kilometres will be established around protected areas and other “pristine viewscapes”. “Pristine viewscapes” remain undefined; with the Minister’s letter to the AUC only stating that they will be “designated by the province.”[7]  New wind projects will no longer be permitted within the said buffer zones, which cover most of southern Alberta and a majority of the province’s total land area. Other proposed developments located within the buffer zones may be subject to a visual impact assessment before approval.

Crown Lands: “Meaningful engagement” will be required before any policy changes for projects on Crown land, which will not come into effect until late 2025. Any development of renewable generation on Crown lands is to be on a case-by-case basis.

Transmission Regulation: According to the AUC, changes to Alberta’s Transmission Regulation are expected in the coming months as the engagement process continues, and renewable projects should expect changes in how transmission costs are allocated.  No details have been provided yet on any changes in allocation.

Municipalities: Municipalities are automatically granted the right to participate in AUC hearings and are eligible to request cost recovery for participation. Municipalities will be allowed to review rules related to municipal submission requirements while clarifying consultation requirements.[8]

The Minister will provide further policy direction once the Module B report is completed.

During the pause, the AUC introduced interim requirements relating to agricultural land, viewscapes, reclamation security and land use planning as part of the regulatory review process for new power plant applications.[9] These interim requirements will continue to be in effect for all current and prospective applications.[10] Applications will now be required to satisfy both the existing requirements, as well as the interim requirements until further notice.[11] The AUC will provide further direction on the process related to existing and new applications.

From March 1, 2024, the AUC will be able to recommence issuing decisions on applications. The new policies are stated to only be applicable to “new” renewable project approvals going forward, and not retroactively to existing projects under construction or already approved.[12]

Miller Thomson will be following further developments as they progress.  Please contact the authors, Aaron Atcheson or another member of our  Environmental Law Group for further information and questions.

[1] Generation Approvals Pause Regulation, Alta Reg 108/2023.

[2] The Government of Alberta, “Backgrounder: Alberta’s Renewables inquiry and the related purpose” (28 February 2024), online: <https://www.alberta.ca/system/files/au-backgrounder-albertas-renewables-inquiry-and-related-pause-20240228.pdf> [Alberta’s Renewables Inquiry].

[3] Alberta Utilities Commission, “AUC inquiry into the ongoing economic, orderly and efficient development of electricity generation in Alberta – Module A”, (last visited 29 February 2024), online: <https://www.auc.ab.ca/featured/auc-inquiry-into-the-ongoing-economic-orderly-and-efficient-development-of-electricity-generation-in-alberta/>.

[4] Alberta’s Renewables Inquiry, supra note 2.

[5] Ibid.

[6] Letter from the Minister of Affordability and Utilities to Alberta Utilities Commission, dated February 28, 2024, online: https://www.alberta.ca/system/files/au-minister-neudorf-letter-to-auc-20240228.pdf [Letter from the Minister].

[7] Letter from the Minister, supra note 6.

[8] Alberta’s Renewables Inquiry, supra note 2.

[9] Alberta Utilities Commission, Bulletin 2024-03, “Updates to AUC application review process following generation approvals pause” (28 February 2024).

[10] Ibid.

[11] Alberta’s Renewables Inquiry, supra note 2.

[12] Ibid.