Federal Government Proposes Faster Pipeline Review Process with New Legislation
Aerial view of a pipeline stretching through a forested area in Canada, highlighting infrastructure projects.

Federal Government Proposes Faster Pipeline Review Process with New Legislation

Federal pipeline reviews to be completed in one year, boosting investor confidence and streamlining infrastructure development.


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Based on coverage from CBC, The Globe and Mail, Toronto Star, and Winnipeg Free Press.

Ottawa is teeing up a major rewrite of how Canada approves big infrastructure projects, with a clear goal: get federal reviews done within a year, including for energy projects like pipelines.

The federal government released discussion papers Friday and opened a 30-day consultation. After that, it says it plans to move quickly with legislation. The pitch is speed and predictability for investors, while promising a more co-ordinated approach to Indigenous consultation.

Ottawa plans one-year major project reviews

The centrepiece is a promised maximum one-year federal review period for major projects. That is a step beyond what the Liberals have already done recently: last year, they set up a Major Federal Project Office and talked about a maximum two-year timeline for final decisions.

The government’s message is that current reviews are too slow and repetitive, and that proponents are stuck navigating multiple processes. In its press release, Ottawa said “nation-building infrastructure” such as ports, railways, energy corridors, critical minerals, and clean energy has been “bogged down in red tape.”

Pipeline approvals could be reordered by cabinet

One of the more controversial ideas on the table would flip how pipeline decisions happen. The government is proposing allowing cabinet to decide whether a pipeline is in the public interest before the technical review is finished.

The rationale, according to the proposal, is that companies would find out early whether there is political buy-in, before spending heavily on a long technical process. This comes as Alberta is expected to submit a proposal for a new pipeline to the west coast in less than two months, according to one report.

Another proposed change affects who does the reviewing. Ottawa is proposing that interprovincial pipelines and transmission lines, plus offshore renewable energy projects, be reviewed by the Canada Energy Regulator rather than the Impact Assessment Agency of Canada. The Canadian Press notes this would undo a shift made eight years ago when the Impact Assessment Agency was created as more of a one-stop shop for national project reviews.

Impact assessment changes for energy projects

CBC reports the government wants federal impact assessments and permit reviews to happen at the same time, rather than sequentially. The same report says some projects, including pipelines, would be reviewable under the Canada Energy Regulator, without requiring a separate assessment by the Impact Assessment Agency of Canada.

The discussion paper also proposes other regulatory tweaks aimed at removing bottlenecks, including:

- Narrowing the types of activities that need navigation permits - Making permits for fish and fish habitat more flexible for offsetting - Shifting some decision-making authority from cabinet to specific ministers - Allowing some early construction activities before an impact decision is made, as long as necessary permits are approved

Put together, Ottawa is signalling it wants fewer stop-and-start moments in the system, and fewer handoffs between agencies.

Indigenous consultation hub aims to curb fatigue

A big part of the government’s argument is that faster does not have to mean sloppier, especially on consultation. The proposals repeatedly reference Indigenous engagement and propose creating a “Crown Consultation Hub” within the Impact Assessment Agency of Canada.

CBC describes it as a “Crown Corporation Hub” meant to ensure each affected Indigenous group goes through “one clear and co-ordinated process” per project, responding to concerns about “consultation fatigue.” Other reporting similarly frames it as a single, co-ordinated track that also better aligns with provinces.

Indigenous Services Minister Mandy Gull-Masty told reporters she had reviewed the proposed changes Friday morning and linked the conversation to Indigenous economic contributions, saying they “run into the billions of dollars with the GDP.” She added she trusts the government will respect what it has set out to do.

Business groups push for quick action

Industry has complained for years that Canada’s approval timelines are a drag on investment and growth. The Canadian Chamber of Commerce welcomed the direction, backing the idea of “one project, one review” to create predictability. Bryan Detchou, the chamber’s senior director of natural resources, environment and sustainability, said businesses are still showing a “lack of confidence” and want the consultation to lead to quick action.

For Canadians, the fight will be over tradeoffs: whether the new approach genuinely cuts duplication while still delivering credible technical scrutiny and meaningful consultation, especially as the government tries to move major energy and infrastructure files faster than the system has been built to handle.

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