Up To $40M In Federal Funds to Hat At The Whim of Provincial Government
City council’s regular meeting on Monday March 2, 2026. (Photo Alex McCuaig)
Talk of provincial independence is on the upswing in Medicine Hat and provincial legislation is putting an exclamation mark on just have far the Alberta government is willing to go when it comes to asserting its jurisdiction.
The past week and a half saw the seperation issue raised at the MLA town hall event along with the Rebel Media Independence Tour at the Medicine Hat College with those both for and protestors against separation.
For Medicine Hat Mayor Linnsie Clark, she’d like to see Alberta remain part of Canada.
“I think there is a lot of value being part of Canada and I want to continue to be a part of Canada,” said Clark following Monday’s council meeting. “That doesn’t mean there aren’t things that we need to discuss with Ottawa that might improve the trust and relationship between the federal government and Alberta.”
While Premier Danielle Smith’s government has moved to claim more powers from Ottawa, her administration is also curtailing municipal decision making when it comes to accessing federal funds through the Provincial Priorities Act.
That legislation has already been utilized once to veto federal funds for a day shelter service in Medicine Hat and could be used to stop the city from accessing up to 30 per cent cost recovery for the more than $130 million Saamis Solar project.
Under the Provincial Priorities Act, the city will require the approval of the Alberta cabinet before accessing the federal tax credit program for Saamis Solar.
A computer generated view of the Saamis Solar project. (Image courtesy of DP Energy)
Coun. Chris Hellman highlighted the nearly $40 million cost recovery potential for Saamis Solar from the federal Investor Tax Credit program during debate on the project during the Feb. 2 council meeting.
Following Monday’s council meeting which saw passage of a $65 million debenture bylaw that will secure funding for the project, Hellman said there’s no update on the province’s position on allowing that funding to flow through to the city.
Hellman stated council does meet with the two Medicine Hat MLAs regularly and his message to the provincial representatives would be to, “understand the process better, how we fit into the ask and decision making process and how we can best work together so we in Medicine Hat get everything we can from both levels of government.”
Asked whether she thought provincial powers in Alberta aren’t just being asserted at the federal level but also when it comes to municipalities, Mayor Clark said that could be a topic of discussion during a review of the provincial Municipal Government Act (MGA).
“Clarity around what truly our role is, whether or not the revenue generation options for municipalities are sufficient in terms of that balance of what the constitution says that are the provincial versus federal role is and whet the MGA says our role is – is that still reality,” said Clark. “And is the funding appropriate for all of those levels.”
The question of federal funding for Saamis Solar won’t be required to be asked and finalized until the project jumps two further hurdles; regulatory approval and a guaranteed power purchaser for the 75 MW power generation venture.