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On November 27, 2025, the Ontario Government's Bill 56 – the Building a More Competitive Economy Act (the "Bill") – received Royal Assent, introducing significant amendments to the Clean Water Act that will affect water protection planning and compliance. These changes are designed to streamline certain processes, but they also introduce new compliance obligations that all project proponents should be aware of.1 These changes will come into force on a day to be named by order of the Lieutenant Governor.2
This legislative update is intended as general guidance only. If you have specific questions or concerns about how this may affect your projects, McCarthy Tétrault's environmental and regulatory group is standing by to assist.
Key Changes at a Glance
1. Faster Approvals
Amendments to source protection plans are deemed approved if the Minister does not respond within 120 days of submission.3 This change streamlines the approval process and provides greater certainty for project timelines. If the Minister requests a resubmission, the same timeline applies.4 Once an amendment is deemed approved, the Minister must publish a notice of approval on the environmental registry, increasing transparency in the amendment process.5
2. Additional Consultation
The Minister now has the discretion to require additional consultation with stakeholders before approving or amending a source protection plan, after considering comments and recommendations submitted under applicable statutes.6 This can improve the quality of plans by incorporating more feedback, but may also introduce delays that could affect project planning and timelines.
3. New Policy Framework for Significant Drinking Water Threats
Source protection plans must now include policies that proactively prevent significant drinking water threats and address existing ones. For new activities identified as threats, plans can prohibit them from starting.7 For ongoing activities, decision-makers must ensure approvals are designed to meet water protection objectives and eliminate threats.8 This increases the responsibility of proponents to design projects that comply with water protection objectives from the outset, reducing reliance on lengthy regulatory reviews to catch issues. Failure to do so could lead to legal challenges.
4. Stronger Oversight of Permits and Approvals
Source protection plans must now include one of two prescribed policy types for activities identified as significant drinking water threats: either prohibiting new activities at a location, or requiring that approvals are designed to meet water protection objectives and eliminate threats.9 In addition, any permits, licences, or other prescribed instruments issued under provincial statutes must comply with these new policies.10 Authorities are required to review and amend these instruments as needed to ensure compliance, and the Minister has new powers to enforce these requirements, request remedial steps, and require reporting.11
5. Greater Flexibility for Source Protection Authorities
Source protection authorities can now approve amendments to source protection plans in prescribed circumstances and must provide public notice of approvals on the source protection authority's official website.12 If the consultation submissions influenced the authority's decision, a brief explanation must be provided.13 The authority may also publish any other information it considers appropriate.14 This change allows for more responsive and transparent decision-making.
What does this mean for stakeholders and project proponents?
You may face tighter timelines and new compliance obligations for water protection. Early planning and proactive design are more important than ever.
The key amendments and their impacts are summarized in the chart below.
|
Amendment |
Impact |
|---|---|
|
Proposed amendments deemed approved within 120 days |
Streamlines approval process; increases transparency via environmental registry notices. |
|
Minister has the option to require additional consultation |
Enhances consultation quality but may introduce delays affecting project timelines. |
|
New policy framework for significant drinking water threat activities |
Embeds prevention into plans; proponents will have greater responsibility to ensure designs meet water protection objectives; failure to do so could lead to legal challenges. |
|
Source protection authority can approve amendments as prescribed |
Provides flexibility for authorities; requires public notice and explanation of decisions. |
Footnotes
1. Clean Water Act, S.O. 2006, c. 22 ["Clean Water Act"]; Bill 56, Building a More Competitive Economy Act, S.O. 2025, c. 11 ["Bill 56"].
2. Bill 56, at Sched. 1, s. 12.
3. Clean Water Act, at s. 34(6).
4. Ibid, at s. 34(7).
5. Ibid, at s. 30(2).
6. Ibid, at s. 29(1)(b)(i).
7. Ibid, at s. 22(8.1).
8. Ibid, at s. 42.1.
9. Ibid, at s. 22(8.1).
10. Ibid, at s. 42.1.
11. Ibid, at s. 42.1.
12. Ibid, at s. 34(8) and (9).
13. Ibid, at s. 34(9)(a)(i).
14. Ibid, at s. 34(9)(a)(ii).
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
