Building Canada: advancing national priorities and projects Building Canada: advancing national priorities and projects

The Building Canada Act (BCA), known colloquially as Bill C-5, aims to expedite development of “national interest projects” (NI Projects) by streamlining federal approval processes. It creates the Major Projects Office (MPO), which is located in Calgary and is intended to be a single point of contact between proponents and the federal government. The BCA establishes a process through which projects are essentially guaranteed federal permits, thereby providing greater project development certainty and efficiency. Time will tell whether the BCA and MPO will be able to live up to lofty expectations of delivering key projects sooner.

In the coming months, we expect to see the MPO identify NI Projects. What follows will test whether the new fast-tracked process can effectively cut through the regulatory delays the BCA seeks to address. With this clarity still to come, there are both benefits and risks associated with the BCA process, which proponents will want to weigh when determining whether to seek to take advantage of the new framework.

Background and aims of the BCA

The BCA was introduced in response to sweeping U.S. tariffs on Canadian products and received royal assent on June 26, 2025. The objectives of the BCA are to address longstanding barriers that have fragmented interprovincial trade and to advance projects that will grow the Canadian economy. Prime Minister Carney’s stated mandate is to “build an enormous amount of new infrastructure at speeds not seen in generations.”

The BCA enables the government to identify NI Projects. An NI Project is one that meets some or all of the following criteria: (a) strengthens Canada’s autonomy, resilience and security; (b) provides economic or other benefits to Canada; (c) has a high likelihood of successful execution; (d) advances the interests of Indigenous peoples; and (e) contributes to clean growth and to meeting Canada’s objectives with respect to climate change.

Process to list an NI Project

Ultimately, cabinet must decide which projects qualify as NI Projects, but the process will be managed by the MPO.

On receipt of a project proposal, the MPO will assess the project’s contribution to the national interest and identify required federal approvals. It will also coordinate and consult with Indigenous peoples and with relevant provinces, territories and federal ministers. Pursuant to the published process, the MPO will coordinate and engage in Indigenous consultation throughout the entire period until a cabinet NI Project decision is rendered and project conditions are identified.

Once cabinet identifies an NI Project, it will publish a notice of its intention to list the NI Project in the Canada Gazette and must continue consultation with the province or territory in which the NI Project is located. For projects within the exclusive jurisdiction of a province or territory, that jurisdiction’s written consent to the listing is required. After 30 days, and assuming any required consent is obtained, cabinet will then issue an Order in Council adding the project to Schedule 1 of the BCA.

While certain projects have been referred to the MPO for review, cabinet has yet to identify any NI Projects for inclusion under the BCA. The initial list and the second tranche of projects under consideration indicates a strong focus on energy, mining and trade infrastructure.

According to the MPO, following the designation of an NI Project, the focus will shift to “how” to get the project built (including mitigating impacts through permitting conditions) not “whether” it can be built.

Potential benefits for NI Project proponents

NI Project designation may result in significant benefits for federally-regulated projects, in particular those requiring an impact assessment under the Impact Assessment Act (IAA). Proponents may be relieved from significant regulatory risks inherent in the federal impact assessment process.

Pursuant to the BCA, all determinations, findings and opinions necessary for granting required federal authorizations under the enactments listed in Schedule 2 of the BCA for NI Projects are “in favour of permitting the project to be carried out in whole or in part.” Further, once a project is listed as an NI Project, the responsible minister is required under the BCA to issue a document (Conditions Document) that is deemed to constitute all required federal authorizations for the NI Project. These authorizations may be subject to conditions developed in consultation with the relevant other federal ministers. Such authorizations can include decisions under the IAA,pipeline and powerline certificates under the Canadian Energy Regulator Act and authorizations under the Fisheries Act and the Species at Risk Act, among others.

The BCA does not set statutory timelines for the issuance of a Conditions Document. However, the government’s goal is to shorten the federal approval time to two years. NI Projects otherwise reviewable under the IAA are also exempt from the planning phase which should expedite the assessment process.

On its face, the BCA is designed to increase the certainty that NI Projects will successfully obtain necessary federal authorizations. The “single window” contact with federal regulators through the MPO should remove regulatory complexity, duplication and inconsistency across different federal departments. Further, exempting NI Projects from the planning phase under the IAA and streamlining federal reviews through the MPO should improve approval timelines.

However, it is important to note that the BCA explicitly provides that an authorization cannot be granted solely on the basis of the BCA deeming provisions; a proponent is not relieved of its obligation to acquire all necessary authorizations. The proponent must still take the steps normally required to obtain each authorization before a Conditions Document is issued.

Potential risks for NI Project proponents

Notwithstanding the above benefits, there are several risks inherent in the BCA process.

Details regarding the regulatory process and timing for NI Projects to obtain a Conditions Document, and hence the degree to which the MPO and BCA will improve current regulatory challenges in Canada, are still unknown.

Moreover, while the BCA strives to expedite the regulatory process, challenges to the legislation itself could cause unintended delay and complication. Challenges to the validity and constitutionality of the BCA, which allege that the BCA gives cabinet excessively broad powers to override existing environmental legislation and infringe Charter rights, have already been filed in Ontario and Québec. If such challenges are successful, Conditions Documents issued under the impugned BCA may be rendered invalid.

Similarly, an accelerated BCA process may result in legal challenges where Indigenous consultation is perceived to be truncated or otherwise inadequate to fulfill the federal government’s obligations. Proponents can mitigate these risks by engaging early, proactively and responsively with Indigenous communities. However, if a project is designated as an NI Project and faces Indigenous opposition, there is a risk a court will find that Crown consultation prior to designation of the NI Project was inadequate.

A further consideration is that Conditions Documents expire after five years if an NI Project has not substantially started during that period. This timeframe must therefore be incorporated into project development plans to avoid subsequent regulatory risks.

Another potential concern is that cabinet can add or subtract federal legislation from the list of federal authorizations that are captured by the BCA process. This means that proponents cannot rely entirely on the current list of required authorizations at any given time. As such, it is critical that proponents engage with the MPO and government to understand the likelihood of potential changes to the BCA.

Finally, projects that are primarily regulated by provincial authorities and that do not require federal authorizations may obtain limited benefit from an NI Project designation. Indeed, provincially-regulated projects with potential environmental and Indigenous impacts may attract heightened public attention and scrutiny if designated as an NI Project.

Optimism for project development in Canada

The BCA seeks to expedite major nation-building projects and strengthen the Canadian economy while respecting Indigenous rights and environmental interests. Time will tell whether the MPO can streamline processes and sufficiently de-risk major projects to enable the types of private investments that the federal government is hoping to attract. However, the intent behind the BCA and the early implementation of the MPO, including the appointment of former TransAlta and Trans Mountain President and Chief Executive Officer, Dawn Farrell, as CEO, show promise that major projects may again have a future in Canada.

We encourage project proponents interested in NI Project designation to discuss the potential benefits of such designation with the MPO to allow for an informed assessment of the benefits and risks of designation.