By Liam Verster

Bill 72: Preserving Canada's Economic Prosperity

Act to protect Alberta’s right to limit energy exports tabled in Legislature

May 25, 2021 | 3:08 PM

The Alberta Government has tabled Bill 72, the Preserving Canada’s Economic Prosperity Act, at the Legislature with the intent of strengthening the government’s ability to limit energy exports to other jurisdictions against legal opposition.

The legislation, which replaces the 2019 act under the same title, gives the government the authority to restrict the export of crude oil and natural gas if deemed necessary. The change to the legislation removes references to ‘refined fuels’ with the goal of strengthening the act in respect to the province’s constitutional authority to control exports of primary production natural resources.

Speaking on behalf of the Minister of Energy Sonya Savage, Minister of Environment and Parks and Government House Leader Jason Nixon says there were legal issues surrounding the ‘refined fuels’ references in the original act, and that by removing the term it enables the act to become a tool that can help defend Alberta, it’s economy, natural resources and citizens.

“Should any other jurisdiction attempt to unconstitutionally block Alberta’s energy resources, this legislation will allow Alberta’s democratically elected government the ability to fight back by restricting their oil and gas shipments,” says Nixon.

He adds the Ministry of Energy will have more details on how the legislation will be implemented after it goes through the processes in the Legislature.

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Nixon says though the government will continue to fight for the energy sector, they will seek a more diplomatic resolution in any negotiation first, and only use the legislation as a last resort, comparing it to a fire extinguisher for use in an emergency only.

The legislation can only be used in respect to other provinces and territories, and does not apply to jurisdictions outside of Canada.

“We govern our relationships with other countries when it comes to pipelines through treaties, and we will continue to use other mechanisms that are within our ability as a province, and to encourage the federal government to use other mechanisms that are in their ability when dealing with international relations with other countries.”

The act was originally drafted by the previous NDP government during the dispute between Alberta and British Columbia regarding the Trans Mountain Expansion pipeline and was proclaimed by the UCP in April 2019.

However, Nixon says the relationship between the two provinces has been very good as of late, and while at this time there doesn’t appear to be a need to use the legislation, he says it’s still an important tool to have at the ready in the event that a conflict with any member of the confederacy escalates.

“This shows Alberta is serious, that we have a serious law in place that we could use if we need it. We don’t want to use it, but talking about a law is not the same as having a law, and this law, we hope, will pass the Legislature and will be proclaimed and it will be clear to all jurisdictions that we have the ability to use it if we need to defend our interest.”

If passed in the Legislature, the Preserving Canada’s Economic Prosperity Act would be retroactive to May 1, 2021.