Accelerating Federal Major Projects: Bill C-39’s Proposed Changes to Project Approvals

On September 21, 2026, the Government of Canada introduced Bill C-39, the Building Canada Strong Act, in the House of Commons. Bill C-39 aims to build on recent federal initiatives, including the One Canadian Economy Act (Bill C-5) and the Major Projects Office, and open new markets, strengthen supply chains, accelerate the development of major projects and unlock natural resources in Canada. Bill C-39 builds on a number of federal and provincial initiatives across the country to streamline major projects. See our previous commentary in our bulletin, Fast Tracking Major Projects: Federal and Provincial Developments.

Key Takeaways

• Bill C-39 is intended to provide greater certainty for project planning and development by establishing a one-year timeframe for certain federal reviews and decisions once a proponent has submitted all required project information.
• A “Regions of National Interest” framework and deeming mechanism are expected to accelerate the authorization process for multiple projects within a single corridor or region on the basis of a ministerial determination against pre-established criteria. The eligible regions and project types remain to be determined.
• Energy and nuclear projects would have clear regulatory leads. The Canada Energy Regulator would become the sole assessor for interprovincial and international or otherwise designated pipeline and power line projects and certain offshore renewable energy projects, while the Canadian Nuclear Safety Commission (CNSC) would lead impact assessments for designated nuclear projects.

Background

Bill C-39 is structured in three parts: Part 1 (Build Canada Now) addresses major project approvals and environmental and regulatory processes, Part 2 (Keep Canada Moving) addresses transportation, ports, supply chains and digital trade, and Part 3 (Canada Strong for All) addresses labour relations and worker protections.

This bulletin highlights key project-related changes proposed by Bill C-39 in relation to major project approvals, including changes to federal impact assessments, permitting and approvals, and the development of projects of national interest.

Impact Assessment Act (IAA) Amendments

• One-year decision timeline: Decision statements for designated projects assessed by the Impact Assessment Agency of Canada (Agency) would be required within one year after the proponent provides the required information. Federal impact assessments, permitting processes and Crown consultation would generally proceed concurrently, making application completeness and early consultation critical to the regulatory approvals timetable.
• Coordinated federal authorizations: The Minister of Environment would be authorized to grant certain federal authorizations, including under the Fisheries Act, the Canadian Navigable Waters Act, the Canadian Environmental Protection Act, 1999 (CEPA) and the Species at Risk Act, concurrently with the issuance of a decision statement, rather than requiring separate permitting processes. A new Schedule 5 to the IAA would list the specific authorizations eligible for this coordinated approach.
• CNSC as responsible authority for nuclear projects: The CNSC would become the responsible authority for conducting impact assessments of designated projects that include activities regulated under the Nuclear Safety and Control Act, preparing the report and issuing its own decision statement.
• Coordinated Indigenous consultation: A new purpose provision would require the Agency to coordinate consultations with Indigenous groups in relation to impact assessments and federal authorizations. Proponents would be required to explain, in their notice to the responsible authority, how they intend to address issues relating to the adverse impact the project may have on the rights of Indigenous Peoples, as recognized and affirmed by section 35 of the Constitution Act, 1982. Indigenous communities have raised concerns about accelerated decision-making under similar streamlining legislation, including a constitutional challenge to the existing Building Canada Act commenced by nine First Nations in Ontario. It appears likely that similar challenges may be initiated in respect of Bill C-39.

Building Canada Act Amendments

• Regions of National Interest: The Governor in Council would be empowered to designate “Regions of National Interest” in a new Schedule 3 after conducting a relevant regional assessment under the IAA and consideration of any resulting report. Schedule 3 would set out (1) the name and geographic description of each designated region, (2) the types of projects eligible within the region and any applicable criteria, and (3) the information a proponent must provide to the designated Minister for a proposed project in a designated region. Canada has indicated these regions could include transportation and energy corridors, telecommunications networks, and industrial regions. In considering whether to designate a region, the Governor in Council may consider the potential to strengthen Canada’s autonomy, resilience and security, provide economic benefits, have a high likelihood of successful execution, advance the interests of Indigenous Peoples, and contribute to clean growth and climate objectives.
• Deeming favourable determinations: If the designated Minister is satisfied that a project of an eligible type within a region of national interest meets the criteria to be set out in Schedule 3, every determination, finding and opinion required for the granting of an authorization would be deemed to have been made in favour of permitting the project. Provided that proponents have also satisfied the statutory requirements, including providing required information, paying applicable fees and meeting any other preconditions for the relevant authorizations, the Minister would then issue a single consolidated document to the proponent that is deemed to constitute each federal authorization specified in it.
• Five-year expiry: Consistent with the existing requirement for national interest projects under the Building Canada Act, the consolidated authorization document issued for a project within a region of national interest would expire if the project is not substantially started within five years.
• Indigenous consultation requirements: The designation of “Regions of National Interest” would require that adequate consultations have been conducted with Indigenous Peoples whose rights under section 35 of the Constitution Act, 1982 may be adversely affected.

Canadian Energy Regulator Act Amendments

• Canada Energy Regulator (CER) as sole assessor under the Canadian Energy Regulator Act (CER Act): The CER would become the sole assessor under the CER Act of applications in respect of interprovincial and international or otherwise designated pipelines and power lines, and certain offshore renewable energy projects, and would endeavor to issue decisions within one year of receiving the required information and studies (specific timelines are contemplated in the tiered approval framework below). These projects would no longer be subject to review under the IAA.
• Tiered approval framework:Bill C-39 introduces a new tiered approval process, which establishes expected timelines and processes for approvals for interprovincial and international pipelines and power lines based on new right-of-way length:
  • For pipelines and power lines requiring less than 300 kilometres (km) of new right of way, the CER itself would decide whether to issue the certificate authorizing construction and operation within 300 days after submission of a complete application.
  • For pipelines and power lines requiring 300 km or more of new right of way, the CER would submit a report to the designated Minister within 180 days after submission of a complete application and the Governor in Council would determine within 60 days whether the project is in the public interest and direct the CER to issue the certificate or dismiss the application within 125 days thereafter (for a total approval timeline of 365 days).
  • The CER may order an approval or exemption from all or part of the approval process no later than 180 days (previously 300 days) after submission of a complete application for pipelines or branches of or extensions to pipelines (1) that do not require more than 40 km of new right of way or (2) that require a total of 40 km or more of new right of way, if the CER determines that the order is in the public interest. There is no similar section for power lines.
  • The Minister may extend time limits for pipeline and power line reports and certificate issuance for a period of up to 90 days, if the extension is required to fulfil the Crown’s duty to consult with Indigenous Peoples.
• Feasibility of conditions: Before including conditions in an approval, the CER would be required to consider the technical, economic and practical feasibility of those conditions.
• Coordinated authorizations and Indigenous consultation: The CER’s Chief Executive Officer would be empowered to coordinate with federal authorities to ensure that federal authorization processes and consultations with Indigenous Peoples are coordinated and that federal authorizations are issued simultaneously.

Looking Ahead

Bill C-39 is currently before Parliament and may be amended as it progresses through the legislative process. Several divisions would come into force on a day to be fixed by order of the Governor in Council, rather than upon royal assent, including the IAA amendments, Building Canada Act amendments, and CER Act amendments. Transitional provisions would generally preserve the application of the prior legislative regime for projects that have reached certain procedural milestones before the coming-into-force date. Notwithstanding the foregoing, the designated Regions of National Interest will depend on future Governor in Council orders, and certain aspects of Bill C-39 may face legal challenges from Indigenous communities. Blakes will continue to monitor the progression of Bill C-39.

For more information, please contact the authors or any other member of our Major Projects group.