On June 6, Bill C-5, the "One Canadian Economy Act"1 passed first reading in the House of Commons. If passed, part 2 of Bill C-5 would enact the Building Canada Act (the Act), implementing a streamlined process for approving projects that are designated by federal Cabinet as "national interest projects" (part 1 of Bill C-5 addresses interprovincial trade). National interest projects would be subject to a new regulatory process focused on "how" to best advance them instead of "whether" to advance them. This is aimed at shortening a process that currently takes five or more years to two years.
The Act introduces a "two-key" process with the following mechanisms to accomplish this goal:
- Designating "national interest projects." The Act would empower the Governor in Council (i.e., Cabinet) to designate a list of "national interest projects" to be subject to the process set out in the Act. In considering designating a project, the minister designated as the responsible minister under the Act "must" consult with any other federal minister, any provincial or territorial government considered appropriate, and Indigenous peoples whose section 35 Aboriginal or Treaty rights may be affected, before determination to designate a national interest project is made2. Once designated, the project benefits from a provision that deems all determinations, findings and opinions necessary for authorizations required of the project under other federal enactments to be favourable3. The responsible Minister must then, subject to certain procedural prerequisites, issue a "document" that sets out compliance conditions covering the subject matter of the authorizations that would otherwise have been required. Designation thus carries with it a near automatic approval, leaving the terms and conditions of the approval to be determined by the responsible Minister in consultation with the other federal authorities and Indigenous communities.
- Factors to be considered when designating
projects. Prescribed factors to be taken into account by
Cabinet when designating projects are potentially broad, including
projects that:
- 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 Canada's objectives with respect to climate change4.
- Responsible minister with singular approval authority. After designation, proponents would be required to provide certain project-related information to federal agencies and departments for review. But instead of multiple ministers, departments or agencies rendering a variety of regulatory decisions, approval authority would be centralized with one responsible minister, who would issue a single "conditions document" for the project, after completing mandatory consultations with other relevant ministers, and the discharge of the duty to consult and accommodate potentially-affected Indigenous groups6. It remains to be determined how the responsible minister will manage this consultation process with other ministries, and with potentially-affected Indigenous groups, efficiently to ensure a two-year approval timeline. Once completed, the conditions document would constitute the permit or authorization for the project, and the conditions that it contains would be deemed to be the authorization and conditions under all other relevant federal legislation7.
- Indigenous consultation throughout. Indigenous consultation would take place both before a project is designated a national interest project, and when national interest projects are considered by the responsible minister in developing the conditions document. The government states that the conditions document is anticipated to include appropriate mitigation and accommodation measures8.
- CNSC and CER must be consulted on projects within their mandates. The responsible minister would be required to consult with the Canadian Nuclear Safety Commission and the Canadian Energy Regulator in respect of nuclear and pipeline projects falling within each agency's mandate, before issuing a conditions document. In those circumstances, the responsible minister is only authorized to issue a conditions document once the CNSC or CER has confirmed that it will not compromise, in the case of nuclear projects, the health or safety of persons, national security or implementation of international obligations; and in the case of pipelines, the safety or security of persons or regulated facilities. This focuses the role of these agencies as affirming safety and security in respect of national interest projects.
- Streamlined Impact Assessment Agency involvement. To the extent any designated national interest project also constitutes a "designated project" under the Impact Assessment Act, the early planning phase of the assessment process will not apply, and the Agency will be deemed to have decided that an impact assessment of the project is required. These amendments will trim some front-end time but appear to leave the balance of the process untouched, including the Agency's determination of the scope of the assessment and studies that will be required from the proponent (which can take up to three additional years to complete) and subsequent inquiry and evaluation by the Agency or a review panel, where one has been appointed. The manner in which this process may be further expedited to fit within a two-year timeframe could be clarified in regulation.
- New major projects office. A new major projects office would be established by the federal government, with a mandate to consider proposed major projects, and consulting with provincial, territorial and Indigenous governments when determining which projects of national interest to designate. The major projects office would be responsible for assisting proponents as they proceed through the assessment process, may be involved in Indigenous consultations, and may play a role in facilitating Indigenous economic partnerships. The major projects office will include a new Indigenous Advisory Council with First Nations, Inuit and Métis representation.
- Broad regulation-making authority. The Act provides Cabinet with broad powers to make regulations in respect of any national interest project exempting it from, or varying the application of, any provision of 13 statutes or regulations made thereunder, or to enact other regulations for the purpose of carrying out the Act. As the Act is relatively brief, Cabinet may make further regulations specifying the manner in which various government agencies may carry out their respective processes to inform the responsible minister efficiently, potentially including timelines.
- Five-year sunset. The Act would have a sunset clause. After five years the window for additional national interest projects to be designated would close, unless the government chooses to extend the window.
Prime Minister Carney has acknowledged that Bill C-5 is not a comprehensive package, and the government is considering other measures that may assist in advancing national interest projects.
Footnotes
1. Parliament of Canada, One Canadian Economy Act.
2. Proposed Building Canada Act, section 5(7).
3. Proposed Building Canada Act, section 6.
4. Ibid.
5. Government of Canada press release, One Canadian Economy: An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act.
6. Proposed Building Canada Act, section 7; https://www.canada.ca/en/intergovernmental-affairs/news/2025/06/one-canadian-economy-an-act-to-enact-the-free-trade-and-labour-mobility-in-canada-act-and-the-building-canada-act.html.
7. Proposed Building Canada Act, section 7(3).
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