Bill C-39 Aims To Speed Up Federal Reviews And Project Decisions

Key takeaways

• Bill C-39 targets a one-year timeline for federal project reviews and decisions, backed by a parallel Cabinet Directive to keep departments accountable.
• The amendments streamline multi-agency processes by designating a single responsible authority for each project and enabling one unified federal approval and the creation of a Transportation Project Office.
• Decision-makers must now consider the technical, economic and practical feasibility of permit conditions.

On Monday, September 21, 2026, the first day of the fall sitting of the House of Commons, the federal government tabled Bill C-39, the Building Canada Strong Act.¹  The legislation builds on previous measures (including Bill C-5, the One Canadian Economy Act2) to improve the impact assessment and regulatory processes for major projects.³ The bill, organized in three parts, proposes amendments relating to project evaluations, supply chains and the workforce.

A separate Cabinet Directive (the Directive) has also been issued to support the goal of completing federal reviews and project decisions within one year.⁴

This Update focuses on amendments relating to approvals and regulation of major projects. The amendments discussed below are selected for their significance, but should not be interpreted as an exhaustive list of all amendments.

Proposed amendments

Bill C-39 implements certain measures in relation to project evaluations through amendments to existing federal statutes. The most relevant of these proposed amendments are highlighted below.

Impact Assessment Act

Bill C-39 will amend the  Impact Assessment Act (the IAA)⁵ to implement changes proposed in the working paper Getting Major Projects Built in Canada – Discussion Paper on Proposed Legislative, Regulatory, and Policy Reforms published by the federal government on May 8, 2026. The amendments introduce two key concepts:

• Responsible authorities: Bill C-39 introduces a new “responsible authority” concept into the IAA (s.8.3). Each designated project will be assigned a single responsible authority: either the Impact Assessment Agency of Canada (the IAAC) or the Canadian Nuclear Safety Commission (the CNSC) in accordance with the regulations to be made under subsection 109(b) or an order made under subsection 9(1).
  
  The responsible authority becomes the central point of contact for the impact assessment process. It receives the proponent’s initial project description (s. 10), ensures public participation in preparatory stages (s. 11), offers to consult with affected Indigenous groups and other jurisdictions (s. 12), provides the proponent with a summary of issues (s. 14), issues the notice of commencement (s. 18), determines the scope of factors to be considered (s. 18(1.2)), conducts the impact assessment or oversees a review panel (s. 25), and prepares or oversees the preparation of the impact assessment report (s. 28). The responsible authority also determines the information and studies required from the proponent, may suspend or extend timelines in defined circumstances, and establishes conditions for follow-up programs and mitigation measures.
  
  Where two closely related designated projects have different responsible authorities, proposed section 8.4 requires those authorities to cooperate with each other in the exercise of their respective powers and duties.

• CNSC as responsible authority: Bill C-39 designates the CNSC as the responsible authority for any designated project that includes activities regulated under the Nuclear Safety and Control Act,⁶ as specified in the regulations, or a Ministerial order (proposed s. 8.3(a)). Critically, an impact assessment is mandatory for every project for which the CNSC is the responsible authority (proposed s. 17.2), eliminating the screening discretion that the IAAC otherwise retains under subsection 16(1).
  
  The CNSC must prepare its own impact assessment report within 300 days of the proponent’s information being confirmed (proposed s. 28(2.1)) and is empowered to set conditions on adverse effects within federal jurisdiction and on direct or incidental adverse effects in that report (proposed ss. 28(3.3) and (3.4)). When the CNSC report indicates effects are not likely to be significant, the CNSC must issue a decision statement “without delay.”⁷ For projects where effects may be significant, GiC has 65 days to make a public interest determination on the CNSC report,⁸ then the CNSC must issue a decision statement within 30 days.⁹ Several provisions allow the CNSC and GiC to extend these timelines for cooperation with other jurisdictions with no statutory caps, unlike the pipeline extension mechanisms.
  
  Bill C-39 confirms the position signalled in the May 2025 working papers: nuclear designated projects already undergoing an impact assessment led by the IAAC will continue under the existing IAAC-led framework through to a decision statement, rather than being transferred mid-stream to the CNSC.¹⁰ In each transitional scenario, the decision statement issued by the Minister is deemed to have been issued by the CNSC under the new s. 65.1, ensuring regulatory continuity for downstream licensing under the Nuclear Safety and Control Act.¹¹ For projects at earlier stages (where the notice of commencement or the s. 19(4) notice has not yet been posted), the proponent has a time-limited 30-day election window to request that the IAAC proceed to a decision statement under the pre-amendment rules, failing which the project would transition to the new CNSC-led framework.

The amendments to the IAA also provide for:

• A cohesive and reduced timeline: Where the IAAC is the responsible authority, applicants can expect a decision statement from IAAC within one year of providing the required information or studies.¹² One application, one approval: The federal Minister of the Environment will be able to issue a single approval document on behalf of all engaged departments and ministers.¹³
• Increased coordination between federal departments: There will be increased coordination of the impact assessment and review processes for federal authorizations. Federal departments will endeavour to share information and advice to expedite the approval process.¹⁴
• Increased practical considerations: The decision maker now will be required to consider the technical, economic and practical feasibility of conditions imposed on a project.¹⁵
• A jumpstart on projects: The Minister of Environment can grant authority for preparation work to be done while the assessment process is being carried out. This does not guarantee the application will be successful, but it allows applicants to begin select work on the project while waiting for approval.¹⁶
• Consultation with the Canada–Nova Scotia Offshore Energy Regulator (CNSOER): While not elevated to a responsible authority, the CNSOER’s role in project review is established through a series of mandatory referral, consultation and panel-appointment provisions that ensure it exercises significant oversight and influence over designated projects involving offshore activities regulated under the NS Accord Act.¹⁷

Building Canada Act

Bill C-39 will amend the Building Canada Act (the BCA).¹⁸ There are four key areas of change:

• One decision maker: The Minister of One Canadian Economy will have the ability to adjust environmental conditions for projects. This will establish a single, clear decision maker who can address updates regarding technical details, construction timelines and consultations with Indigenous peoples.¹⁹
• Longevity of the BCA: The “sunset clause” has been removed, allowing the BCA to remain in force beyond its initial five-year term.²⁰
• A change to judicial review: Any judicial reviews of decisions under the BCA will bypass the Federal Court and proceed straight to the Federal Court of Appeal, significantly reducing legal timelines if a judicial review becomes necessary.²¹
• Regions of national interest: Bill C-39 proposes a legislative framework for the designation of regions of national interest. These additions implement the concept of economic zones proposed in a government working paper Getting Major Projects Built in Canada – Discussion Paper on Proposed Legislative, Regulatory, and Policy Reforms.
  • The framework for listing a region of national interest is largely the same as the process for national interest projects. The Governor in Council, on recommendation by the Minister, may designate a region as a region of national interest following a regional assessment that must be completed under section 92 or 93 of the IAA or under applicable territorial law. The factors considered in listing a region of national interest are the same as the factors considered in listing a national interest project — namely, whether a region can strengthen Canada’s autonomy, resilience and security; provide economic or other benefits to Canada; have a high likelihood of successful execution; advance the interests of Indigenous peoples; and contribute to clean growth and to meeting Canada’s objectives with respect to climate change.
    
    Designated region of national interest will be listed in a new Schedule 3 of the BCA which shall include the name of the region; a detailed description of the region, including the geographic area that it covers; the types of projects that are eligible within the region and any criteria associated with those types of projects that must be met; and the information that the proponent of a project must provide to the Minister to establish that their project meets the criteria referred to in paragraph (c) for the purposes of subsection 8.‍3(1).
  • Under proposed subsection 8.3(1), a project within a region of national interest is treated similarly to projects of national interest under subsection 6(1) of the BCA. All necessary authorizations and decisions shall be deemed to be given in favour of permitting the project if the Minister is satisfied that the project meets the criteria set out in Schedule 3.

Canadian Energy Regulator Act

Bill C-39 will amend the Canadian Energy Regulator Act (the CER Act).²² There are two key areas of change:

• Expedited timeline: Consistent with the proposed IAA amendments, the CER Act will require that decisions on pipelines, designated power lines and offshore renewable energy projects be issued within one year after the applicant submits the required information and studies.²³
• Streamlined decision making: Bill C-39 introduces a tiered approval framework based on the length of new right of way²⁴ required for a pipeline project, shifting decision-making authority away from the federal cabinet for smaller projects:
  • Cabinet (Governor in Council) approval is now only required for pipelines with 300 km or more of new right of way. For shorter projects, the Canada Energy Regulator (the CER) is the final decision-maker.
  • For projects requiring less than 40 km of new right of way, the CER can approve the project without issuing a certificate, enabling faster decisions without a public hearing. Currently, this threshold is based on 40 km of total pipeline length rather than new right of way.

Federal Courts Act

Bill C-39 will amend the Federal Courts Act²⁵ to give the Federal Court of Appeal jurisdiction to determine applications for judicial review made in respect of decisions regarding national interest projects or regions of interest under the BCA. Judicial reviews will bypass the Federal Court and begin at the Federal Court of Appeal.²⁶ Notably, this also limits parties to a single appeal to the Supreme Court of Canada. Importantly, current applications for judicial review before the Federal Court will immediately be transferred to the Federal Court of Appeal if they meet the criteria of having been brought under specific sections within the BCA.

Canadian Navigable Waters Act

Bill C-39 will amend the Canadian Navigable Waters Act (the CNWA).²⁷ There are three key areas of change:

• Decreased exemption approval bottleneck: The Minister of Transport can now approve exemptions under the CNWA. Previously, only the Governor in Council could do this. This will significantly speed up the process while still allowing the Minister to refer cases to the Governor in Council if necessary.²⁸
• A redefinition for structure exemptions: The Governor in Council can now exempt certain structures as “works” under the CNWA. This eliminates the need for authorization of projects that would only have minimal impacts on navigation and makes approvals for major projects more efficient.²⁹
• Increased practical considerations: Similar to the BCA, the Minister will have to consider the technical, economic and practical feasibility of any potential conditions for CNWA permits for projects.³⁰ Similar additions are proposed for the Species at Risk Act and the Fisheries Act.

Canadian Environmental Protection Act, 1999

Bill C-39 will amend the Canadian Environmental Protection Act, 1999 (CEPA)^.31 There are two key changes:

• Longevity of permits: The amendments allow for the issuance of permits under CEPA for more than one year.³²
• Increased practical considerations: Similar to the BCA, the Minister will have to consider the technical, economic and practical feasibility of any potential conditions for CEPA permits for projects.³³

Species at Risk Act

Bill C-39 will amend the Species at Risk Act (SARA).³⁴ Similar to the BCA, the Minister must consider the technical, economic and practical feasibility of any conditions for SARA permits on projects^.35

Fisheries Act

Bill C-39 will amend the Fisheries Act. There are three key changes:

• Habitat credits: Habitat Credits, issued by the federal Minister,³⁶ may now be traded amongst project proponents.³⁷ Any obligations associated with the credits will remain attached to them, binding each successive holder.³⁸ As a result, habitat credits could be used to offset the harmful effects of projects on a fish habitat bank even where the entity applying the offset is not the original project proponent.³⁹
• Ability to more easily amend the regulations: The Minister of Fisheries will now have authority over the Fish Habitat regulations, which were previously only within the authority of the Governor in Council.⁴⁰
• Increased practical considerations: Similar to the BCA, the Minister will have to consider the technical, economic and practical feasibility of any potential conditions for Fisheries Act permits for projects.⁴¹

Department of Transport Act

Bill C-39 proposes a Transportation Project Office be created under the Department of Transport Act[⁴² to coordinate reviews and consultations in respect of transportation projects and to serve as a source of information and point of contact for proponents. This new office will facilitate coordination for all remaining transportation projects not coordinated by the IAAC, the CER or the CNSC, or those listed under the BCA, with a focus on streamlining processes, better coordinating consultation on regulatory approvals and permits, and removing duplication and administrative barriers.⁴³

Cabinet Directive on getting projects built in Canada

In parallel with Bill C-39, the Government of Canada has issued the Directive to complete federal reviews and make project decisions in no more than one year. The Directive’s objectives are to set timeline expectations for project approvals, increase coordination between federal departments responsible for regulatory reviews, reduce burden on Indigenous groups for consultation, and introduce a mitigation hierarchy with a goal to avoid, minimize, restore and offset.

The Directive applies to federal departments and agencies that conduct regulatory reviews and make project-related decisions. The Directive does not apply to bodies with independent decision-making authority, such as the CER. Departments and agencies subject to the Directive must restructure their review processes to enable decisions within one year of a complete project application. They must also eliminate procedural redundancies, collaborate where necessary, and increase clarity for project proponents.

For projects managed by the Major Project Office (the MPO), the MPO will coordinate federal departments and agencies and support Crown-Indigenous consultations. For projects listed under the BCA, the MPO will spearhead development of a conditions document in coordination with relevant federal bodies.

The IAAC will manage coordinated federal reviews under the IAA for which the IAAC is the responsible authority, aiming to run impact assessments and permit reviews simultaneously. The IAAC will also develop policy tools, serve as a point of contact for proponents, and maintain a public project dashboard. Further the IAAC will create a Crown consultation hub for Indigenous consultation, except for projects solely assessed by the CER, the Transportation Project Office or the CNSC.

Footnotes

^{1 Government Bill (House of Commons) C-39 (45-1) – First Reading – Building Canada Strong Act – Parliament of Canada.}

^{2 One Canadian Economy Act, SC 2025, c 2.}

^{3 Government Introduces Bill To Speed Up Major Projects And Strengthen Canada’s Economy.}

^{4 Ibid.}

^{5 Impact Assessment Act, SC 2019, c. 28, s. 1.}

^{6 Nuclear Safety and Control Act, SC 1997, c 9.}

^{7 Bill C-39, An Act respecting certain measures to strengthen the economy, 1st session, 45th Parl, 2026,  clause 51 proposing amended IAA section 61.1(1)) Bill C-39. .}

^{8 Bill C-39, at clause 46, proposing amended IAA section 62(3)).}

^{9 Bill C-39, at clause 51, proposing amended IAA section 65.1(3).}

^{10 Bill C-39, clause 90 proposing amended IAA sections 191-193.}

^{11 Bill C-39, clause 90 proposing amended IAA section 194.}

^{12 Bill C-39 Introduction – Canada.ca at section 1.1 Efficient federal reviews and decisions.; Bill C-39, page ii and clause 2.}

^{13 Bill C-39, page ii and clause 49 proposing amended IAA section 64.2(1).}

^{14 Bill C-39 Introduction – Canada.ca at sections 1.1.1 Federal coordination and 1.1.2 One project, one decision, in one year; Bill C-39, clause 7 proposing amended to IAA section 8.4.}

^{15 Bill C-39 Introduction – Canada.ca at section 1.3.2 Building an effective, modern, and efficient regulatory environment.}

^{16 Bill C-39, page ii.}

^{17 Bill C-39, clause 92 and 104 proposing amended IAA sections 43, 46.1, 50, 39, and 65.2.}

^{18 Building Canada Act, SC 2025, c. 2, s. 4.}

^{19 Bill C-39 Introduction – Canada.ca at section 1.3.2 Building an effective, modern, and efficient regulatory environment; Bill C-39, page ii.}

^{20 Bill C-39, page ii.}

^{21 Bill C-39, page iii.}

^{22 Canadian Energy Regulator Act, SC 2019, c. 28, s. 10.}

^{23 Bill C-39 Introduction – Canada.ca at section 1.3.2 Building an effective, modern, and efficient regulatory environment; Bill C-39, page iii.}

^{24 “New right of way” refers to the portion of a pipeline’s route that requires acquisition of land rights not already held by the proponent, as distinct from total pipeline length.}

^{25 Federal Courts Act, RSC 1985, c F-7.}

^{26 Bill C-39, clause 114 and 115 proposing amended FCA section 28(1).}

^{27 Canadian Navigable Waters Act, RSC 1985, c N-22.}

^{28 Bill C-39 Introduction – Canada.ca at section 1.3.2 Building an effective, modern, and efficient regulatory environment; Bill C-39, at clause 160 proposing amended CNWA section 24(1).}

^{29 Bill C-39, clause 161 proposing amended CNWA section 28(1)(h).}

^{30 Bill C-39, clause 159 proposing amended CNWA section 9.01(1).}

^{31 Canadian Environmental Protection Act, 1999, SC 1999, c. 33.}

^{32 Bill C-39, clause 166 proposing amended CEPA section 129(2).}

^{33 Bill C-39, clause 167 proposing amended BCA section 167.}

^{34 Species at Risk Act, SC 2002, c 29.}

^{35 Bill C-39 Introduction – Canada.ca at section 1.3.2 Building an effective, modern, and efficient regulatory environment; Bill C-39, clause 177 proposing amended SARA section 73.1(1).}

^{36 Fisheries Act, RSC 1985, c F-14.}

^{37 Bill C-39, at clause 185 proposing amended Fisheries Act section 42.02(1)(a).}

^{38 Bill C-39, at clause 186 proposing amended Fisheries Act section 42.03.}

^{39 Bill C-39, at clause 186 proposing amended Fisheries Act section 42.03.}

^{40 Bill C-39 Introduction – Canada.ca at section 1.3.2 Building an effective, modern, and efficient regulatory environment; Bill C-39, clause 183 proposing amended Fisheries Act section 35.}

^{41 Ibid.}

^{42 Department of Transport Act, RSC 1985, c T-18.}

^{43 Bill C-39 Introduction – Canada.ca at section 1.1.1 Federal coordination.}

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