As far as I have seen, the sector is not close to the cap. In theory, if the markets supported new large projects otherwise, the cap could contribute to bad vibes which would stop projects from even being proposed.
The feds have offered to pay 50% of the capital cost and 50% of the operating costs, mirroring the USA inflation reduction act if my memory serves.
Anyways. The issue is it comes down to a firmly held belief that somehow despite oil market pricing post 2013/14, that many oil sands mega projects were killed by the government and not economics. That somehow if the government had

Oil and Gas more that more projects would have been built. That since the NDP and Liberals were elected immediately after the oil price collapse that somehow the NDP and Liberals killed the vibes.
IMO it is about feeling somewhat in control of ones own life. By focusing on the NDP and Liberals, there is a belief that policy changes could solve the economic activity slump. Instead of accepting the horror that 1) our biggest customer became our biggest competitor, and hurt us 2) that technology that was partially developed by Albertans caused a structural shift in the oil market, and hurt us 3) No matter how much you love oil and gas, oil and gas doesn't love you back. Its a market, and its dollars and cents, not vibes, that keeps people employed.
Which is the more comfortable world to live in?