Federal Acceleration Of Infrastructure Approvals

Less than one year after the federal government introduced the Building Canada Act (BCA) to accelerate major projects, on May 8, 2026, it put forth more ambitious proposals to streamline various federal approvals for infrastructure projects. The federal government is seeking input on two discussion papers that propose the most significant legislative and policy reforms on environmental assessment and permitting in decades. 

Draft legislation will be introduced after the consultation period has ended on June 7, 2026.

Key proposed reforms are as follows:

Expedited Federal Approvals (One Year)

One of the objectives of the BCA was to enhance investor confidence by reducing federal decision timelines on major projects from five to two years. The federal government is now proposing to give proponents one year to submit the requisite studies and information, following which all federal review and any issuance of decisions on impact assessments and permits would take place within an additional year. 

For projects subject to the Impact Assessment Act (IAA), the federal government’s review and decision period would begin upon the IAA commencement notice. For projects outside the IAA, the timeline would commence when the project’s permit plan is issued. A new Federal Review Coordinator (FRC) would be created at the Impact Assessment Agency of Canada (IAAC) in an effort to ensure that the new timeframe is adhered to. The Canada Energy Regulator (CER) would do the same for energy projects.

Federal Crown Indigenous Consultation Hub

A new Crown Consultation Hub would be created at IAAC in an effort to consolidate all federal Indigenous consultations (and coordinate federal and provincial Indigenous consultation efforts) required for major projects. A new Transportation Project Office has also been proposed to coordinate Indigenous consultations for transportation projects that are neither major projects nor require an impact assessment under the IAA. Federal consultations with Indigenous communities in the territories will remain under the authority of the Canadian Northern Economic Development Agency.

Bespoke Approval Processes

The BCA introduced a new approach to permitting for major projects that contemplated the issuance of a “conditions document” setting out all required federal authorizations for the associated project. The federal government is proposing a similar approach for projects that are subject to the Physical Activities Regulations under the IAA, whereby a single federal decision document would be issued by the Minister of Environment, Climate Change and Nature (ECCN) and the Minister of any other key ministry responsible for the project sector (to ensure a balance of environmental and economic factors). 

The federal government appears to be proposing a new approach to the assessment of energy projects, with separate impact assessments (rather than under the IAA) being administered by the CER (regarding smaller pipelines, transmission lines, offshore renewable projects) or the Cabinet (which would make public interest determinations of large pipeline projects prior to the completion of the CER’s review of the pipeline’s route and development conditions).

A separate approach is also contemplated for nuclear and uranium projects, with the Canadian Nuclear Safety Commission (CNSC) assigned responsibility for conducting the associated impact assessments under the IAA and the Minister of Energy and Natural Resources tasked with deciding whether projects causing significant negative federal effects are in the public interest.

Federal Economic Zones

Echoing the approach taken by Ontario in the Special Economic Zones Act, 2025, the federal government is proposing the creation of Federal Economic Zones that would be subject to regional impact assessments that provide advance approval for infrastructure or industrial development. Specifically, Federal Economic Zones would exempt transportation corridors (potentially including the proposed “National Trade Corridors” under the Canada Transportation Act), telecommunication networks, energy production and transmission facilities from individual impact assessments.

Streamlining Regulatory Requirements

The federal government has also indicated that it intends to streamline federal regulatory requirements as they relate to major projects, including

• granting Cabinet the authority to exempt projects from the Species at Risk Act requirement to not jeopardize the survival or recovery of an at-risk species, if it is in the public interest to do so and the proponent has made all reasonable efforts to avoid or reduce impacts;
• allowing disposal at sea and impacts to fish and fish habitat in exchange for replacement or compensation (offsetting);
• narrowing the types of activities requiring navigation permits;
• allowing early construction activities prior to the issuance of an impact decision; and
• allowing changes after federal decisions are rendered (in circumstances yet to be specified):
  • granting the Minister of ECCN the authority to amend impact assessment conditions; and
  • granting the Minister of One Canadian Economy the authority to amend environmental conditions for major projects.

Looking Forward

With the introduction of the BCA in 2025, the creation of the federal Major Projects Office and the proliferation of provincial/federal IAA co-operation agreements over the past year, the federal government has clearly signaled that it is serious about its commitment to accelerate the development of major projects. The May 8 proposal presents an even more ambitious attempt to advance infrastructure projects.