To improve reporting on resolution advocacy, the RMA is releasing a monthly bulletin highlighting recent actions undertaken on select active resolutions.
The Monthly Resolution Update Bulletin is a way of routinely highlighting a selection of the over 70 currently active resolutions, offering members a more detailed insight into the work being carried out on their behalf. For the latest formal statuses and reactions to all resolutions, view the RMA’s Resolutions Database.
The September 2024 edition of the Monthly Resolution Update Bulletin features the following resolutions:
Resolution 4-22F: Well Drilling Equipment Tax (WDET) Regulation
Under Division 6 of Part 10 of the Municipal Government Act, municipalities are allowed to pass a bylaw imposing a tax assessed on the equipment used to drill wells licensed under the Oil and Gas Conservation Act. The tax was calculated on a sliding scale, dependent on the depth of the well, and WDET revenues were intended to offset both the infrastructure strain and the administrative burden that accompanies increased exploration and development activities in rural municipalities.
On December 31, 2020, the Well Drilling Equipment Tax Rate Regulation, Alta Reg 293/2020 came into effect, setting the tax rate to $0. This measure was part of a larger provincial government strategy to encourage investment in oil and gas developments during the economic slowdown caused by the COVID-19 pandemic. Despite the oil and gas industry recovering, the WDET rate remains at $0 today.
RMA has long advocated in favour of the WDET to offset the burden of oil and gas exploration on rural municipal infrastructure, with member resolutions on the topic dating back to 2006. Unfortunately, the current provincial government has shown no intent to reinstate the WDET. Over the next few months, RMA will be exploring alternative or innovative revenue streams to offset lost WDET revenues and will develop a new or revised WDET formula which will be shared with government. This project aims to equip members with practical solutions for maintaining financial sustainability while minimizing impacts to economic development and advocate for the reinstatement of a new tool or modified WDET.
Resolution 2-21F: Disaster Recovery Program Cost Allocations
This resolution highlights municipalities’ need for increased funding for natural disasters such as wildfires and flood, especially within the context of reduced revenues attributed to provincial downloading, unpaid oil and gas taxes, removal of the well drilling equipment tax, and more.
Changes were made to the Disaster Recovery Program (DRP) in 2021 that required municipalities to cover 10% of eligible damage costs on a 90:10 provincial to municipal cost-sharing ratio to which members expressed concern, as highlighted in the resolution.
Government responses to this resolution were received by RMA acknowledging the importance of the DRP to municipalities in Alberta. Unfortunately, the response does not indicate any consideration in removing or reconsidering the 90:10 provincial/municipal DRP cost-share.
According to RMA’s Wildfire Survey conducted in 2023, The total DRP funding received by municipalities represents just 21% of the total estimated incurred costs ($78,568,088). The 2024 Wildfire season was also particularly costly and damaging to municipalities. At the RMA-facilitated Wildfire Working Group, DRP funding is consistently referenced as a crucial funding source that provides significant support for municipalities to respond to and prevent damages from wildfire events. RMA will continue advocating for increased financial support to municipalities through committees such as the Wildfire Working Group and will seek out other opportunities for correspondence and advocacy on this issue.
Resolution 9-21F: Increasing Knowledge Sharing Among Regulators of Cannabis Production
The cannabis industry is regulated and governed by the Health Canada. The Government of Alberta and Alberta Gaming, Liquor and Cannabis (AGLC) also have a role in regulating the sale of cannabis and cannabis products. Municipalities are responsible to manage and, in some circumstances, enforce cannabis legislation when notified by residents who have a license to cultivate, process, or sell cannabis. However, rural municipalities sometimes find themselves in a position where they cannot access the information they need to support the safe sale and use of cannabis in their municipality or to effectively deal with nuisance complaints about cannabis from other residents. Resolution 9-21F asks for collaboration with the Federation of Canadian Municipalities (FCM) and better information sharing with municipalities.
RMA is continuing research to better understand the legislative framework and local impacts of this issue. This includes seeking answers to the following:
- What information is necessary, safe, reasonable, and effective in supporting rural municipalities work with cannabis regulators in their municipality?
- What reasonable and effective tools and solutions are rural municipalities using to work with cannabis regulators?
- How can RMA work with FCM on this topic?
- What is known about the cannabis industry and consumption in rural Alberta?
Resolution 9-21F expires December 2024. RMA looks forward to working on this resolution in the months that remain.
Stay tuned for future editions of the Monthly Resolution Update Bulletin, where we will continue to feature updates on selected resolutions.
Wyatt Skovron
General Manager of Policy & Advocacy
780.955.4096
wyatt@RMAlberta.com