Melvin Vanhouwe took a neighbour hostage with a sawed-off shotgun in May 2009.
After the police tactical unit arrived, he pointed the weapon at an officer and was shot three times.
A fatality inquiry heard the 49-year-old was incredibly drunk — four times the legal driving limit — and had a stockpile of guns in his home.
Vanhouwe also had a criminal record and had been banned by the courts from possessing weapons.
Provincial court Judge Sean Dunnigan made no recommendations in his inquiry report.
The Alberta Serious Incident Response Team also investigated the shooting and determined police were justified..