One example is a palladium mine proposed near Marathon, Ontario. First formally proposed in 2010, the project received federal impact-assessment approval in 2022. Hubbard said two additional federal permits required from environmental and fisheries authorities took another 15 months to secure.
Combining that permitting period with the IAAC’s recent 17-month assessment average would produce a roughly 32-month process, although Hubbard stressed that the Marathon project is only one example and cannot establish a government-wide average.
Bill C-39 targets broader federal approval system
The government is seeking to accelerate the process through the Building Canada Strong Act, Bill C-39. The legislation is intended to address projects outside the special system established for proposals Ottawa considers to be of national importance.
The previously created Major Projects Office provides dedicated federal assistance to selected nation-building projects as they navigate regulatory reviews. Carney has so far referred 18 specific projects and nine broader “transformative strategies” to the office.
The new legislation is intended to tackle the wider approvals system.
If Bill C-39 becomes law, Hubbard would also serve as the federal review co-ordinator, helping organize reviews involving multiple federal departments and agencies. Projects requiring specialized expertise could continue to be handled by regulators such as the Canadian Nuclear Safety Commission.
Transport Minister and Government House Leader Steven MacKinnon, who introduced the legislation, said ministers would be directly accountable for improving approval timelines within their portfolios.
MacKinnon would oversee efforts involving transportation approvals, while Natural Resources Minister Tim Hodgson would be responsible for energy-related decisions. Environment Minister Julie Dabrusin would oversee matters involving the IAAC. Ministers and senior officials would also be required to report to Parliament on progress.
Transport Canada is expected to establish a specialized regulator capable of handling approvals for infrastructure such as rail spurs and port facilities, similar to the regulatory role played by the Canada Energy Regulator for pipelines.
IAAC says reforms are already underway
Hubbard said the IAAC has already been working to eliminate unnecessary duplication and streamline assessments.
The agency has agreements with eight provinces to divide responsibilities for projects that have both federal and provincial implications. Quebec and Saskatchewan are the exceptions.
Hubbard said the agency is also placing greater emphasis on information directly relevant to decision-making rather than routinely demanding information simply because it has historically been part of the assessment process.
The Marathon mine served as a pilot in which the IAAC helped co-ordinate subsequent permitting as well as the impact assessment, providing an early model for the broader system envisioned under Bill C-39.
The legislation would also allow Ottawa to designate “regions of national interest” where multiple projects are expected. The IAAC could conduct regional assessments in advance, potentially reducing the amount of work required when individual proposals arrive.
The agency has previously conducted three such assessments, including work involving offshore wind development near Newfoundland and Labrador. Three broader assessments are currently underway, including one covering Ontario’s mineral-rich Ring of Fire region.
Environmental and Indigenous concerns raised
The government’s push for faster approvals has also generated opposition.
Environmental groups, including West Coast Environmental Law, have criticized provisions that would allow ministers to remove certain approval conditions and, in some circumstances, permit preliminary work to begin before final approvals are issued.
Assembly of First Nations National Chief Cindy Woodhouse Nepinak has also warned Ottawa against rushing Bill C-39 through Parliament without properly respecting Indigenous rights and consultation obligations.
Business organizations, meanwhile, have generally welcomed efforts to reform the broader federal permitting system rather than limiting expedited treatment to projects selected by the Major Projects Office.
Canadian Chamber of Commerce CEO Candace Laing said improving the underlying regulatory system is important to Canada’s economic competitiveness. A Chamber report released shortly after Bill C-39 was introduced identified fragmented and lengthy permitting processes as a significant barrier to investment, particularly in mining.
Mining projects can require not only approval for the mine itself but also separate infrastructure for transportation, electricity, workers and access to markets, potentially adding additional regulatory processes.
Lucy Hargreaves, CEO of Build Canada and a former federal Liberal government official, said implementing the reforms will itself require substantial work. New regulations, regional assessments and the establishment of a new transportation regulator all need to be completed.
Hargreaves estimated that putting the necessary system in place could take at least a year, while supporting the government’s overall direction.
MacKinnon declined to provide a specific implementation timeline but said Transport Canada would move quickly to establish the required mechanisms.
The central challenge for Ottawa will now be turning its one-year approval pledge into a functioning government-wide system while balancing faster investment decisions with environmental reviews, Indigenous rights and federal regulatory responsibilities.
