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Kenney said last May he would introduce a carbon levy on heavy emitters, similar to the Alberta policy before the NDP — a move that would replace the federal OBPS system.

“One thing I’ve said is we would be comfortable, probably, going back to what we had as a levy — a tax — on major emitters, where the companies that produce the emissions actually paid into a research fund,” Kenney said in response to media questions last year.

Alberta first introduced a carbon levy in 2007 aimed solely at heavy emitters like oilsands facilities, concrete plants and refineries, which was set at $15 per tonne. Unlike the federal system, it applied a constant threshold for emissions across the industry, rather than by fuel source.

Similarly, Saskatchewan has already proposed a levy on heavy emitters that will stand in place of the federal carbon tax. Ontario last year introduced an environmental plan that effectively included a carbon tax on heavy emitters, which could replace the federal plan.

Keith Stewart of Greenpeace expects that even in the unlikely event that the federal OBPS is applied to Alberta, producers are likely to continue their shift toward wind, solar and natural gas-fired power. Utilities have begun investing more in natural gas and renewables in recent years as the province looks to phase out coal by 2030.

“I don’t think TransAlta or anybody else is excited to go back to their coal plants,” Stewart said.

Alberta still generates 45 per cent of electricity from coal, and 45 per cent through natural gas, according to the National Energy Board. Hydro, wind and geothermal make up the other 10 per cent.

Environmentalists have argued that electrical transmission should not be subject to an OBPS because many domestic power suppliers do not operate in a free market, unlike oil companies or refineries, for example.

• Email: jsnyder@postmedia.com | Twitter: jesse_snyder