Impact Assessment Agency of Canada's 2024–2025 Departmental results report: Operating context

The Impact Assessment Agency of Canada (IAAC) operates in a constantly changing environment, where external factors such as markets and the socio-economic climate can affect the type, timing, volume, and distribution of projects requiring impact assessments. Similarly, federal impact assessment requirements are part of a complex constitutional and regulatory context that includes shared responsibilities with other jurisdictions and requirements to protect Indigenous rights, federal and provincial legislative and regulatory requirements, and requirements for procedurally fair decision-making.

In June 2024, an amended Impact Assessment Act (IAA) came into force in response to the October 2023 Supreme Court of Canada (SCC) Decision. The amendments included focusing decision-making on areas of clear federal jurisdiction and enhancing collaboration with provincial and territorial partners to advance the objective of “one project, one review.” To support needed investment in major projects, IAAC works closely with other jurisdictions to streamline its processes and to achieve the goal of “one project, one review,” including working closely with provinces and considering their process equivalent to:

• Recognize provincial assessment processes as meeting the requirements of the IAA where major projects are primarily regulated under provincial jurisdiction;
• Integrate federal requirements into provincial assessments to achieve a single assessment where not all federal requirements are covered by provincial processes; or
• Work collaboratively with provinces to address federal requirements through a parallel assessment on residual issues to avoid duplication and overlap where federal requirements are not integrated into provincial processes.

IAAC also invites provinces to collaborate even further on streamlining and coordinating assessments by integrating and coordinating provincial requirements, including through substituted assessments, such as most of the assessments undertaken in British Columbia.

The role of IAAC is to facilitate the sustainable development of the most complex projects in Canada, the ones with the most potential for serious adverse effects in federal jurisdiction, through open and efficient assessments. These assessments identify ways to ensure the environment and Indigenous Rights are protected as projects get built. To ensure the timely, efficient, and effective delivery of federal assessments, IAAC is:

• Implementing new tools to standardize assessment process elements and integrate permitting requirements into assessments;
• Continuing to conduct regional and strategic assessments to understand the impacts of development and to develop mitigation measures in advance, which will enable future project assessments to focus on what is unique;
• Providing clear guidance to proponents on key issues in areas of federal interest to focus assessments on what matters while also providing a rationale for which Indigenous communities are to be engaged in the process; and
• Working with provinces to align approaches to Indigenous consultation while reconciling differences that may exist.

In addition, IAAC engages and consults meaningfully with Indigenous Peoples and the public, provides opportunities throughout assessment processes for them to participate, and manages funding programs to facilitate their participation in these processes. For example, IAAC administers the Participant Funding Program, which supports Indigenous groups, individuals, and non-profit organizations interested in participating in federal environmental and impact assessments, as well as regional and strategic assessments. Indigenous and public participation in federal assessments ensures an open and balanced process, while strengthening the quality and credibility of project reviews.

The assessment process established under the Canadian Environmental Assessment Act, 2012 (CEAA 2012) and the IAA coexist with other environmental and impact assessment requirements established under James Bay and Northern Quebec Agreement and Northeastern Quebec Agreement. IAAC continues to implement assessment processes effectively and efficiently under other treaties and land claims agreements, including:

• Nisga’a Final Agreement;
• Labrador Inuit Land Claims Agreement;
• Tsawwassen First Nation Final Agreement;
• Maa-nulth First Nations Final Agreement; and
• Inuvialuit Final Agreement.

Close collaboration between IAAC and Indigenous rights-holders ensures the efficient and effective coordination of these processes.