Alberta passes bill 'to turn off the taps' to B.C. over pipeline delays

Albertahas passed legislation giving the province's energy minister the power to choke off gasoline shipments to British Columbia if that province continues to throw up barriers to the Trans Mountain pipeline expansion.

Bill 12 passed late Wednesday afternoon in the Alberta Legislature. David Swann, the Liberalfor Calgary-Mountain View, was the only member of the legislatureto vote against it.

Earlier Wednesday, Alberta Premier Rachel Notleyused her strongest language yet about her intentions for the law, stating she was prepared to use it on short notice, if required.

"Albertans, British Columbians and all Canadians should understand that if the path forward for the pipeline through B.C. is not settled soon, I am ready and prepared to turn off the taps," she said.

• Morneausays government willing to compensate Kinder Morgan against political delays

Vancouver drivers are currently paying about $1.57 per litre for gasoline, and blockingshipments could pushprices even higher, putting political pressure on B.C. Premier John Horgan.

Asked when she planned to take action, Notleydeclined to reveal details.

"With the greatest of respect, I'm not going to spell out the exact schedule and the exact steps," she said.

B.C. to mount legal challenge

In response, B.C.Attorney General David Ebysent a letter to Alberta Justice Minister Kathleen GanleyWednesday urging the government to hold offproclaiming Bill 12 until a judge can determine its constitutionality.

"In the absence of such a commitment, I intend to instruct counsel to bring an action challenging its constitutional validity in the courts of Alberta," Eby wrote.

Notleyalsoresponded to an announcement Wednesday morning byfederal Finance Minister Bill Morneau that Ottawa is willing to compensate backers of the Trans Mountain pipeline project for any financial losses due to political obstruction.

MorneausaidCanada is willing to write Kinder Morgan or whoever steps up to the plate a cheque to ensure the Trans Mountain pipeline expansion gets built.

Notleyready to 'do whatever is necessary'

Notley said she remains confident construction will resume this summer. She said she speaks to Morneauevery day, and Alberta officials are involved in the talks with Kinder Morgan.

The premier suggested different scenarios are at play.

"If framework one doesn't work, there may well be a framework two," she said.

Asked if her government is still willing to purchase the project, Notleysaid she will "do whatever is necessary" to get construction underway this summer.

• Kinder Morgan CEO 'appreciates' Ottawa's offer to backstop pipeline delay costs

Morneau's comments came just hours beforeKinder MorganCanada's stakeholdersmet in Calgary. The incentive offer comes two weeks before the company's potential drop-dead date.

Kinder Morgan has threatened to abandon the project if a clear path forward isn't reached by May 31.

Morneauconsulted with senior officials inthe Alberta government and Kinder Morgan CEO SteveKeanTuesday night.

Last month, Kinder Morganstopped all non-essential spending on its$7.4-billion project after a months-long standoff between the British Columbia and Alberta governments.

B.C. has been working to block the pipeline for environmental reasons over Alberta's objections.

The expansion wouldadd a second pipeline alongKinder Morgan's existing pipeline routeto carry diluted bitumen from Alberta to the B.C. coast for export on tankers.

• Trudeau faces tough pipeline questions while re-announcing $1.53B for Green Line in Calgary