Canada: Bill C-39 Coordinated Consultation Streamlines Project Reviews

• Bill C-39, the Building Canada Strong Act, was introduced on September 21 to streamline major project reviews through a 'one window' approach.
• The legislation aims for federal decisions within one year of a comprehensive application, described as 'one project, one review, one year'.
• Amendments to the Impact Assessment Act grant the environment minister new powers, including issuing single decisions and allowing preparatory work earlier.
• The Canadian Energy Regulator will become the sole assessor for pipelines, designated power lines, and offshore renewable energy projects.
• The bill formalizes the roles of federal agencies in coordinating Crown consultations with Indigenous communities, aiming for one consolidated federal consultation per project.

Both legal professionals, however, concur that while the promise of Canada Bill C-39 coordinated consultation is a genuine improvement, the ultimate success of the legislation will hinge entirely on its implementation.

Canada's federal government has introduced comprehensive reforms aimed at accelerating the review process for major projects, encapsulated in Bill C-39, officially known as the Building Canada Strong Act. This legislation, brought forward by Transport Minister Steven MacKinnon in the House of Commons on September 21, seeks to implement a more efficient and unified approach to project assessments. A core tenet of the bill is the establishment of a “one window” system, which designates a single expert federal assessor to oversee specific projects, thereby consolidating the review process.

Dominic LeBlanc, the minister responsible for One Canadian Economy, characterized the new standard for project review as “one project, one review, one year.” This ambitious target reflects the government's commitment to ensuring that federal decisions on project applications are rendered within a year of a proponent submitting a complete application. The overarching goal is to streamline what has often been a protracted and complex regulatory landscape, fostering greater predictability for developers while maintaining robust oversight.

The proposed changes are designed to formalize and enhance **Canada Bill C-39 coordinated consultation** efforts, particularly concerning Indigenous communities. The bill amends both the Impact Assessment Act and the Canadian Energy Regulator Act to clearly define the roles of key federal bodies—the Impact Assessment Agency of Canada (IAAC), the Canadian Energy Regulator (CER), and the Canadian Nuclear Safety Commission (CNSC)—in orchestrating Crown consultations. This aims to ensure a single, consolidated federal consultation process for each affected Indigenous community regarding a given project, simplifying engagement and improving clarity.

The **Bill C-39 Impact Assessment Act amendments** are central to the legislative overhaul. They empower the environment minister to issue a single, comprehensive decision that covers all permits a proponent has applied for, rather than requiring separate approvals. Furthermore, the minister gains the authority to permit certain preparatory work to commence even before a final decision is issued, provided such early action is deemed to be in the public interest. This provision aims to reduce delays in the initial phases of project development.

Significant alterations are also introduced regarding the conditions attached to project approvals. Under current regulations, the minister's ability to modify, add, or remove conditions is restricted to instances where such changes would not exacerbate adverse effects. Bill C-39 broadens this discretion, allowing the minister to make these adjustments when they are considered to be in the public interest. For specific infrastructure, including pipelines, designated power lines, and offshore renewable energy projects, the Commission of the Canadian Energy Regulator will assume the role of the sole assessor, with decisions mandated within one year of receiving all necessary information and studies, directly impacting the **Canadian Energy Regulator Bill C-39** framework.

Beyond these core changes, the legislation introduces other notable amendments. First-instance judicial reviews under the Building Canada Act will now be heard by the Federal Court of Appeal, rather than the Federal Court, potentially altering the appellate pathway for challenges. Additionally, the competent minister will be required to consider technical, economic, and practical feasibility when establishing permit conditions under the Species at Risk Act. The bill also facilitates the use of habitat credits by third parties under the Fisheries Act, offering new mechanisms for environmental mitigation.

Legal experts hold divergent views on the practical implications of Bill C-39, particularly concerning its potential to streamline the **Canadian project review timeline** and its effects on **Indigenous consultation Bill C-39**. Thomas Isaac, chair of Cassels Brock & Blackwell LLP’s Aboriginal law group, who advises various industries and governments, views the proposed legislation as a progressive and lawful framework. He contends that the bill places the responsibility for timely decisions squarely on the government and dismisses concerns that a one-year assessment period is unrealistic, stating that even the largest projects can be assessed within this timeframe.

Conversely, Aashish Oberoi of Olthuis Kleer Townshend LLP, who represents Indigenous governments on matters of self-governance and resource protection, expresses reservations. He foresees a compressed timeline fraught with uncertainties and highlights the broad new ministerial discretion as a potential risk. Oberoi suggests that these elements could erode the trust that is fundamental to successful project development and Indigenous engagement. Both legal professionals, however, concur that while the promise of **Canada Bill C-39 coordinated consultation** is a genuine improvement, the ultimate success of the legislation will hinge entirely on its implementation.

Lawyers advising proponents or Indigenous communities on major projects in Canada must understand the new 'one window' approach, streamlined timelines, and expanded ministerial discretion introduced by Bill C-39, as these changes will significantly alter project planning, risk assessment, and consultation strategies. They should closely monitor the implementation details to advise clients effectively.

Source: Original reporting via Canadian Lawyer