On April 17, 2025, the provincial government introduced Bill 5, titled Protect Ontario by Unleashing our Economy Act, 2025 ("Bill 5"). This legislative proposal consists of 10 separate schedules, some proposing minor adjustments to legislation, and others proposing entirely new regimes. This is the latest in Ontario's effort to reduce regulatory barriers to project development and stimulate economic growth.
Ontario's stated purpose for Bill 5 is to protect the Ontario economy from global economic headwinds by streamlining and accelerating the permitting and approvals processes for mining and critical infrastructure projects, protecting the mineral supply chain and limiting foreign participation in the province's energy sector.
Bill 5 proposes a number of changes to environmental, mining and energy legislation, including:
- Creating a streamlined "one project, one process" permitting model under the Mining Act, by establishing a "mine authorization and permitting delivery team" to expedite approvals for designated mining projects. The model aims to cut review timelines by up to 50%. Projects will be assigned a "Project Lead" to guide proponents through approvals processes. It excludes environmental impact assessments under the Environmental Assessment Act.
- Granting new discretionary powers to the Minister of Energy and Mines to deny the issuance of mining leases and cancel existing claims and tenures where the Minister considers it desirable for the "protection of the strategic national mineral supply chain". The Minister's new powers will include the ability to suspend the operation of the Mining Lands Administration System and revoke mining claims, with limits on the ability for proponents to seek judicial review and a bar on claims for compensation.
- Making immediate amendments to the Endangered
Species Act ("ESA") and
eventually repeal the Act altogether to enact the newSpecies
Conservation Act, 2025 ("SCA"). The
amendments to the ESA will bring significant interim changes to the
permitting and species conservation regime by, among other things:
- Narrowing the definition of "habitat" for animals and removing "harass" from the prohibitions regard harm to species.
- Giving cabinet the final discretion to add or remove species from the Species at Risk in Ontario (SARO) list, rather than the Committee on the Status of Species at Risk in Ontario (CASSARO).
- Winding down the Species Conservation Action Agency and the Species at Risk Conservation Fund that is administered by CASSARO.
The new SCA, if passed, will bring even more significant changes to the province's species conservation regime, including:
- Shifting species related authorizations to a registration-first approach. Most project proponents will be able to begin an activity immediately after registering. Registered activities will be required to meet habitat and species protection requirements set out in the new regulations.
- Removing duplication of species protections by providing that SCA protections do not apply to species already federally protected under the Species At Risk Act ("SARA"). Permits (or soon-to-be registrations) will not be required for impacts to migratory birds and aquatic species protected under SARA.
- Creating new compliance and enforcement powers, including the ability to use mitigation and compliance orders.
- Establishing a new Species Conservation Program to promote habitat restoration and species protection initiatives.
- Bringing in the Special Economic Zones Act, 2025, allowing the province to designate "special economic zones" - areas or projects critically or strategically important to Ontario's economy and security – within which projects undertaken by "trusted proponents" would benefit from reduced regulatory hurdles, including exemptions from certain provincial laws or regulations. Regulations establishing the criteria for identifying special economic zones and trusted proponents, as well as the extent of the regulatory or other exemptions applicable, are expected by September, 2025.
- Amending the Ontario Heritage Act to expand inspection and enforcement powers with respect to the protection of artifacts and archaeological sites, and to grant Cabinet the power to exempt certain property from archaeological and heritage conservation requirements where the exemption could potentially advance specified provincial priorities (transit, housing, health and long-term care, other infrastructure or such other priorities as may be prescribed).
- Providing for new procurement restrictions on Ontario Power Generation, gas distribution and other utilities companies for goods or services that meet conditions to-be-prescribed by regulations respecting country, region or territory of origin. Bill 5 will amend the Ontario Energy Board Act, 1998 and the Electricity Act, 1998, with prescribing regulations expected to follow.
Notice of the proposal has been posted Environmental Registry of Ontario for a 30-day consultation period. Interested stakeholders are encouraged to submit their comments and feedback on the proposed changes prior to May 17, 2025.
The impact of many of these changes, particularly those described in paragraphs 1, 3 and 5, above, will be unclear until the passage of further legislation and regulations. We will provide further briefings as details are released. Our team is prepared to assist clients in navigating all environmental and regulatory issues. Should you have any questions regarding the impact of this case or others, please contact a member of our Environmental, Regulatory & Aboriginal group.
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