Cabinet Directive on getting projects built in Canada

1. Objective

1. The objectives of this Directive are to:
   1. Set timeline expectations for federal decisions required for projects, as set out in section 3.
   2. Coordinate impact assessments and related federal permits, authorizations, and licenses (federal permits).
   3. Reduce consultation burden on Indigenous groups by providing for strong, coordinated, and effective Crown consultation with Indigenous Peoples across federal departments and agencies.
   4. Support the application of the four sequential steps of the mitigation hierarchy, while considering cost-effectiveness and efficiency.
2. The expected results of this Directive are:
   1. Federal regulatory decisions for projects are issued in no more than one year after the proponent provides a comprehensive application and the required information and studies.
   2. Federal regulatory reviews for projects described in section 5 are conducted in a coordinated manner.
   3. Increased confidence among Canadians, Indigenous Peoples, project proponents and investors that Canada’s regulatory system advances economic prosperity while upholding strong environmental protections and respecting Indigenous rights and interests, including modern treaty rights.

2. Application

1. The Directive applies to all federal departments and agencies responsible for regulatory reviews and decisions related to projects. The Directive does not apply to federal departments, agencies, and institutions of public government that exercise independent or arm’s-length decision-making functions (Canada Energy Regulator (CER); Canadian Nuclear Safety Commission (CNSC)) nor to the Offshore Energy Regulators or modern treaty co-management boards.
   1. This Directive is subject to applicable statutes, regulations, and other regulatory and policy instruments, including agreements with other jurisdictions, that may be in force from time to time. It does not alter or fetter impact assessment, permitting, or licensing processes established under modern treaties or the Government of Canada’s modern treaty obligations, nor does it fetter the statutory authorities or discretionary powers set out in those instruments or in other Cabinet Directives.
   2. In the territories, the Directive will apply in a manner consistent with the existing federal and Crown consultation coordination role for the Canadian Northern Economic Development Agency in any of the assessment processes required for projects that involve more than one federal department or agency.
2. Federal authorities pursuant to section 81 to 91 of the Impact Assessment Act remain responsible for meeting obligations for non-designated projects on federal land and outside Canada, and should be coordinated to the greatest degree possible when multiple authorities have such obligations for the same project, including as outlined in guidance provided by the Impact Assessment Agency of Canada (IAAC).
3. For this Directive, a project is defined as a project that requires a federal permit.
4. The timeliness and process set out in this Directive do not apply to federal authorizations issued under the Indian Act.

3. Project review targets

1. As of the effective date of this Directive, federal departments and agencies responsible for regulatory reviews of projects are expected to structure review processes so decisions can be made in no more than one year after the proponent provides a comprehensive application and the required information and studies. This includes processes related to impact assessments and other federal permits required for projects.
2. For projects requiring an impact assessment, the one year will begin once a comprehensive application and all required information and studies have been received from the proponent. If an impact assessment is not required but multiple federal permits are, a permit plan will be issued and coordinated by the Federal Review Coordinator, as per section 5, and decisions will be made no more than one year after the proponent provides a comprehensive application and the required information and studies. For projects with only one federal permit, the federal department or agency will issue a decision no more than one year after the proponent provides a comprehensive application and the required information and studies.
3. Federal departments and agencies are expected to:
   1. Eliminate procedural redundancies, collaborate, act with urgency, apply a risk-based approach, and deliver world-class service to project proponents, Indigenous Peoples, and all Canadians.
   2. Support proponent readiness by ensuring information requirements are clear, coordinated, and that unnecessary duplication is avoided.
   3. Exercise restraint in issuing information requests to proponents, ensuring each request is necessary, has a clear basis in legislation or regulations, and is proportionate to the decision to be made.
   4. Apply and support proponents in applying the four sequential steps of the mitigation hierarchy – avoid, minimize, restore and offset – while considering cost-effectiveness and efficiency.
4. As of the effective date of this Directive, the application of the one-year timeline for projects currently in the federal review process will be assessed on a case-by-case basis by the Federal Review coordinator and the MPO.

4. Major Projects Office

1. For projects referred to the Major Projects Office (MPO), the MPO will provide a single window to coordinate federal departments and agencies, leverage financial expertise to support final investment decisions, and support Crown-Indigenous engagement and consultations.
   1. Federal departments and agencies, including the Federal Review Coordinator and Crown Consultation Hub (set out in section 5), will work closely with the MPO to ensure that regulatory and Indigenous consultation plans for these projects align with the objectives of this Directive.
2. The MPO will provide strategic direction to federal departments and agencies on the implementation of this Directive, including achieving the targets set out in section 3 of this Directive.
3. For projects proposed to be listed under the Building Canada Act, the MPO will lead the process pursuant to the Building Canada Act regarding whether to list the project.
   1. Once projects are listed in Schedule 1 of the Building Canada Act, the MPO will lead the process of developing a conditions document and any amendments, which will include working with other relevant federal departments and agencies and may involve the Federal Review Coordinator and Crown Consultation Hub.

5. Federal coordination

1. The President of IAAC will act as the Federal Review Coordinator and oversee the coordinated federal review process for activities listed in the Physical Activities Regulations, under the Impact Assessment Act, and other projects that would benefit from federal coordination, as determined by the Federal Review Coordinator and the MPO.
   1. The Federal Review Coordinator – together with responsible Deputy Ministers – must ensure impact assessments and reviews for federal permits can occur concurrently, subject to a proponent’s request to delay a permit application, enabling decisions within the project review targets (set out in section 3).
   2. The Federal Review Coordinator will improve coordination across the federal government by:
      • developing the necessary policy tools – in collaboration with responsible Deputy Ministers – to coordinate activities across federal departments and agencies to advance the objectives of this Directive;
      • providing a point of contact for proponents and other jurisdictions while fostering the early development of effective proponent-regulator relations;
      • maintaining a public dashboard for projects subject to federal coordination to improve transparency and accountability; and
      • providing executive oversight of the implementation of this Directive through the Deputy Ministers’ Federal Review Group (set out in section 6).
2. IAAC will establish a Crown Consultation Hub to provide for strong Crown consultation coordination on project reviews subject to Federal Coordination.
   1. While departments retain certain consultation responsibilities required to support Ministerial and Governor in Council decision-making, the Hub will lead in:
      • Ensuring a coordinated federal Crown consultation process for project reviews, including integrated consultation tracking, monitoring and information sharing;
      • Working with departments and agencies to support the early identification of concerns raised by Indigenous rights holders and coordinating appropriate recommendations to decision-makers to resolve, mitigate or otherwise accommodate, where appropriate;
      • Implementing Indigenous consultation policies and guidelines for federal officials in collaboration with Crown-Indigenous Relations and Northern Affairs;
      • Coordinating access to funding for Indigenous groups participating in consultation processes through streamlined funding agreements for support on project reviews;
      • Coordinating with provincial Indigenous consultation processes, where applicable; and
      • Providing guidance to proponents on meaningful engagement with Indigenous Peoples on projects.
3. The Federal Review Coordinator and the Crown Consultation Hub will not apply to projects where the CER or CNSC are the sole assessor, or to projects being coordinated by the Transportation Project Office. In such cases, the CER, CNSC and Transport Canada, will take on these roles.
   1. Federal departments and agencies are expected to provide the CER, CNSC or Transport Canada with any information, expertise, and advice within their mandate for the purposes of project review and are expected to align permit decisions with CER, CNSC and Transport Canada timelines.

6. Governance and oversight

1. A Deputy Ministers’ Federal Review Group, chaired by the Federal Review Coordinator, will include Deputy heads of federal departments and agencies involved in or providing expertise on issuing key federal permits for projects subject to federal coordination to provide oversight of the implementation of this Directive.

7. Reporting & key performance indicators

1. Departments and agencies will report on their results towards achieving the objectives and timelines in this Directive as part of their regular Parliamentary reporting.
2. IAAC will report results towards achieving the timelines and objectives in this Directive for projects subject to Federal Coordination as part of its regular Parliamentary reporting.
3. IAAC’s Key Performance Indicators include:
   1. Number of federal regulatory and permitting decisions issued no more than one year from the proponent providing the comprehensive application and required information and studies that were coordinated by the Federal Review Coordinator, where the proponent fulfills its obligations.
   2. Number of Crown consultation processes coordinated by the Crown Consultation Hub.