Yeah, that's not really how a federal government works.
For clarification, the suggestion came from Jason Kenney (leader of Alberta's United Conservative Party). He was referencing Ottawa's decision to deny Saskatchewan funding for projects since they did not approve a carbon tax. He was hoping for something similar to be enacted against BC.
https://globalnews.ca/news/4135451/trans-mountain-jason-kenney-trudeau-bc-alberta-pipeline/
http://nationalpost.com/news/politi...tive-exclusion-from-2-billion-low-carbon-fund