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

Comments are closed

Just Posted

UPDATE: More details released on search for missing Vancouver Island hiker

Searchers scouring Strathcona Park near Gold River for experienced 65-year-old on 40-kilometre trek

Port Hardy Fire Rescue hosts hands-on training

In total, 22 firefighters took part in the training weekend.

Vancouver Island North’s tourism bursting back to life

The North Island was buzzing the first weekend of July after Phase 3 allowed in-province travel

North Island Elementary students published in short story collection

Five Fort Rupert Elementary students are now bonafide authors

MP asks Minister of Transport for review of safe crew levels on new ferries

The new ferries were approved to run with smaller crew sizes, raising safety concerns

Horrifying video shows near head-on collision on Trans Canada

The video was captured on dash cam along Highway 1

Elizabeth May endorses Furstenau in BC Greens race

Former federal party leader backs Cowichan Valley MLA

Fraser Valley woman complains of violent RCMP takedown during wellness check

Mounties respond that she was not co-operating during Mental Health Act apprehension

B.C. sees 12 new COVID-19 cases, no new deaths

Three outbreaks exist in health-care settings

Lost dog swims Columbia River multiple times searching for home

The dog was missing from his Castlegar home for three days.

COVID-19: B.C. promotes video-activated services card

Mobile app allows easier video identity verification

ICBC to resume road tests in July with priority for rebookings, health-care workers

Tests have been on hold for four months due to COVID-19

Would you take a COVID-19 vaccine? Poll suggests most Canadians say yes

75 per cent of Canadians would agree to take a novel coronavirus vaccine

NIC launches virtual orientation sessions

New students encouraged to take part in virtual sessions, webinars, video tours starting this summer

Most Read