Notley says the move is not created to punish B.C. for delays in the Kinder Morgan Trans Mountain pipeline expansion, but that Alberta is "very committed to putting pressure on B.C.to come around and focus on what this pipeline actually means".
Once enacted, it would require companies to obtain Alberta permits in order to export oil and gasoline to British Columbia - which already pays the highest fuel prices on the continent.
Notley said the province was considering restricting shipments of refined products through the existing Trans Mountain pipeline, so that only diluted bitumen flowed to Burnaby, B.C. via pipeline.
But she said her province is rapidly running out of pipeline space to ship its heavy oil. The new powers for the province's energy minister also include placing requirements as to how products are transported, be it by pipeline, rail or truck.
"The powers in this legislation are not powers that Alberta wants to use, but we will do so if it means long-term benefit for the industry, for Alberta, and for Canada", Alberta Energy Minister Marg McCuaig-Boyd said.
The Alberta Premier said Section 92 of Canada's constitution allows the province to have control of exports and imports.
"We are confident that it will withstand legal challenge", Alberta Premier Rachel Notley said of the law, while acknowledging there would likely be a legal challenge. Now the pipeline transports both crude oil and refined fuels.
"A scenario like this would see at least two-thirds of all fuel products potentially cut off, including jet fuel, including diesel and gasoline", he said.
Currently, Alberta ships 44,000 barrels of gasoline and diesel to B.C. through the Trans Mountain pipeline every day, a little more than half of the total 80,000 bpd of refined products shipped to B.C.
"The immediate recourse that's available to us is to potentially sue the Alberta government for an unconstitutional piece of legislation", he said.
Canadian oil producers have been seeking access to markets outside of the USA for years, but have seen multiple oil export pipeline projects - such as Enbridge Inc.'s Northern Gateway and TransCanada Corp.'s Energy East pipelines - be rejected or cancelled. The energy minister has the mandate to decide, he said.
First Nations and municipal leaders restated their opposition to the Kinder Morgan Trans Mountain pipeline expansion project in no uncertain terms Monday in Vancouver.
Kean also gave an end-of-May deadline for resolving the situation.
Kinder Morgan announced earlier this month it is pulling back on spending for the project and gave Prime Minister Justin Trudeau's government until May 31 to give a clear signal the project will proceed.
Burnaby Mayor Derek Corrigan, who has consistently opposed the pipeline, said plans for "investing in the project with taxpayer dollars to mitigate Kinder Morgan's risk" are "entirely unacceptable".
Trudeau, Notley and B.C. Premier John Horgan met Sunday in Ottawa to discuss the pipeline, but emerged from the meeting deadlocked. "He is blowing this into a national crisis because of the mishandling of this file", said Stewart.