The federal government is suggesting changes to legislation to simplify the assessment process for significant projects, including energy ventures like pipelines. These modifications are aimed at speeding up the reviews to be completed within a year, a move contested by environmental organizations and a former Liberal environment minister. The government plans to kick off a 30-day consultation on the proposed reforms for developing major projects in Canada before swiftly introducing new legislation.
In two discussion papers released jointly by the Privy Council Office and Transport Canada, the government is proposing a range of adjustments to streamline the process for obtaining federal approvals. Among these proposals is conducting federal impact assessments and permit reviews concurrently rather than sequentially. The suggested changes would categorize certain projects, including pipelines, under the Canada Energy Regulator, eliminating the need for a separate evaluation by the Impact Assessment Agency of Canada.
Additionally, a “Crown Corporation Hub” is proposed within the Impact Assessment Agency of Canada to ensure that each Indigenous group impacted by a major project undergoes a clear and coordinated process, addressing concerns about consultation fatigue among Indigenous communities. Other proposed changes involve narrowing the activities requiring navigation permits, providing more flexibility for fish and fish habitat permits, transferring decision-making powers from cabinet to specific ministers, and allowing some initial construction activities to commence before an impact decision is reached, subject to necessary permit approvals.
The delays in project approvals in Canada have faced industry criticism for impeding growth. The Liberals, in their campaign promise, established a new Major Federal Project Office last year, aiming to make final decisions on projects within a maximum two-year timeframe. Last year, with Conservative support, the Liberals passed Bill C-5, empowering the government to fast-track major projects deemed in the national interest. These latest proposed changes aim to establish a system for all major projects, receiving positive feedback from Alberta Premier Danielle Smith following a meeting with Prime Minister Mark Carney.
Environmental groups expressed dismay over the proposed changes, asserting that the government is weakening the environmental impact assessment processes for major projects. Former Liberal environment minister Steven Guilbeault raised concerns about the potential setbacks in impact assessment, calling the changes “extremely risky.” Indigenous groups also raised red flags, with the Assembly of First Nations National Chief Cindy Woodhouse Nepinak’s office stating that their initial review is concerning.
Minister responsible for One Canadian Economy, Dominic LeBlanc, defended the proposals, emphasizing the aim to streamline project approvals while maintaining robust environmental protections and respecting Indigenous rights. Indigenous Services Minister Mandy Gull-Masty highlighted the importance of recognizing Indigenous contributions to the economy and expressed trust in the government’s commitment to their objectives.