Project designation under the Building Canada Act

The Building Canada Act is a tool to help advance select major projects that are deemed to be of national interest through a streamlined federal review and approval process, by reducing federal timelines to a maximum of two years.

The main purpose of designation under the Act is to streamline multiple federal decision points in the approval process, into one upfront decision.

When the Building Canada Act is applied

Designation under the Act is one of the tools that may be recommended for projects that would benefit from regulatory streamlining. This could include projects that:

• are early in the process, and could use the Major Projects Office’s (MPO) guidance on regulatory permitting processes;
• could benefit from streamlining duplicative requirements under the statutes listed in Schedule 2 of the Building Canada Act;
• fall under several of the Acts outlined in Schedule 2 of the Building Canada Act, and could benefit from the clarity of a single Government of Canada decision related to the project;
• could benefit from simultaneous approvals to move ahead in a more streamlined manner.

To determine if a project will be designated, it is assessed against the factors outlined in the Building Canada Act, including the extent to which the project can:

• 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;
• contribute to clean growth and to meeting Canada’s objectives with respect to climate change.

Should it be determined that a project may benefit from designation under the Building Canada Act, the Government of Canada would begin a full assessment and consultations with provinces and territories as well as Indigenous Peoples whose rights and interests may be adversely affected.

How decisions are made

When a project is being considered for designation under the Building Canada Act, the Government of Canada consults with provinces and territories, and Indigenous rights holders on whether a project may be in the national interest, including considerations of the factors outlined in the Act.

Following this consultation, if the Government of Canada determines that a project is in the national interest, the Governor in Council makes a decision to designate the project. A notice of decision is published in the Canada Gazette 30 days before an Order in Council is issued to list the project under the Act. This ensures that designated projects are made public through an established and transparent process.

Once listed as a project of national interest under the Building Canada Act, the project is automatically approved under all federal laws listed in Schedule 2, subject to conditions established by the Minister of One Canadian Economy (who is responsible for the Act), through a single review process described below.

Learn more about Schedule 2 of the Building Canada Act.

Federal review process after designation

Major projects are normally subject to approvals, permits and authorizations under various federal laws – such as the Impact Assessment Act, Fisheries Act, and Species at Risk Act. Projects are required to be assessed under each legislation individually, and consecutively.

For projects designated under the Building Canada Act, all federal approvals are automatically granted at once, subject to a conditions document to be issued by the Minister of One Canadian Economy. This process shifts the review from ‘whether’ the project should proceed, to ‘how’ the project should proceed.

It also allows the project to proceed with financing, consultations, business planning, etc. while projects undertake the regulatory review process.

Regulatory review and consultations process

A regulatory review process is still undertaken, even if a project is designated under the Act. The Act enables consolidated, streamlined and simultaneous reviews and consultations, coordinated by the MPO.

The regulatory review process under the Act:

• must continue to fulfil the constitutional duty to consult Indigenous rights-holders;
• ensure project proponents continue to provide the requisite information to federal agencies and departments, including the Impact Assessment Agency of Canada;
• does not exempt a project from federal laws listed in Schedule 2 (Schedule 2 of the Act includes the most common federal approvals that are typically required for major projects, which vary by type and sector.).

The purpose of the regulatory review process under the Act is to develop specific, technical conditions to mitigate project effects. This includes measures to protect the environment and Indigenous rights, and where appropriate, accommodation measures for Indigenous Peoples.

Conditions document

Ministers who normally render individual regulatory decisions pursuant to their respective statutory authorities, such as the Fisheries Act or a decision on migratory birds, will instead inform and advise the Minister of One Canadian Economy.

Once regulatory reviews and consultations are complete, the Minister of One Canadian Economy issues a single set of binding conditions for the project, which will be made public.

The conditions document replaces a permit or authorization that would otherwise be required under all applicable statutes. This conditions document is the legal equivalent to all required permits, decisions, or authorizations under the applicable federal statutes in Schedule 2 and is enforceable by responsible ministers under their existing authorities. If the proponent fails to meet these conditions, the project cannot proceed.