Building Canada Act – An Act respecting national interest projects
By Kim Walsh and Michael O’Keefe
Overview
The Government of Canada introduced Bill C-5, the One Canadian Economy Act, just over one month after the 2025 federal election. With Bill C-5, the federal government sought to further its stated goals of helping Canada become the strongest economy in the G7, deepen trade relationships with reliable partners, and create good Canadian jobs. The One Canadian Economy Act contains two parts: the Free Trade and Labour Mobility in Canada Act; and the Building Canada Act. The One Canadian Economy Act received Royal Assent on June 26, 2025.
Of particular interest to project proponents is the Building Canada Act (the “Act”), the purpose of which is to enhance Canada’s prosperity, national security, national defence and national autonomy by ensuring that projects in the national interest (“National Interest Projects”) are advanced through an accelerated process that enhances regulatory certainty and investor confidence, while protecting the environment and respecting the rights of Indigenous peoples.
National Interest Projects include (but are not limited to):
- projects that foster the development of economic and trade corridors;
- projects that connect different parts of the country and get goods to market;
- projects that strengthen Canada’s ability to trade;
- projects that create good-paying, unionized jobs; and
- projects that enhance the development of Canada’s natural resources as well as its energy production and infrastructure.
While proponents of National Interest Projects are referred to the federal government’s Major Projects Office to engage with the process, this article sets out what potential proponents can expect the process to look like, as set out in the Act.
Before a project is deemed a National Interest Project
Cabinet must first designate a project as a National Interest Project for it to benefit from the expedited authorizations afforded under the Act. Before Cabinet designates a project as such and adds it to the list of National Interest Projects set out in Schedule 1 of theAct (the “List”), the below process will be followed:
- The Minister[i] must be satisfied that the proponent and its directors, officers and significant shareholders have not violated and are not subject to a proceeding regarding a violation under the Conflict of Interest Act, and that every reporting public officer (as defined in the Conflict of Interest Act) who could be in a conflict of interest in relation to the proponent has recused themselves. The Minister will then recommend to Cabinet that the project be deemed in the national interest and added to the List.
- In deciding whether to accept the Minister’s recommendation, Cabinet will consider a non-exhaustive list of factors, including whether the project will: (1) strengthen Canada’s autonomy, resilience and security; (2) provide economic benefits; (3) have a high likelihood of success; (4) advance the interests of Indigenous peoples; and (5) contribute to clean growth and Canada’s climate objectives.
- Cabinet is required to: (1) publish the project name and description in the Canada Gazette for 30 days; (2) consult with the provincial or territorial government where the project will be carried out; (3) obtain written consent from the relevant provincial or territorial government if the project falls within areas of exclusive provincial jurisdiction; and (4) consult with any Indigenous peoples whose constitutional (section 35) rights may be adversely affected.
If Cabinet decides to place the project on the List, thereby deeming it a National Interest Project, the Project is added to the online public registry of National Interest Projects, which includes (1) a detailed description of the project and the reasons why it is in the national interest; (2) the extent to which the project is expected to meet the non-exhaustive factors listed above (excepting the project’s contributions to Canada’s climate change objectives); (3) detailed cost estimates omitting private sector commercially sensitive financial information; and (4) the estimated timelines for completing the project.
Once a project is deemed a National Interest Project
Once a project is placed on the List, the project is deemed to have received favourable authorizations for all requirements needed to carry out the project, as prescribed by the statutes and regulations listed in Schedule 2 of the Act. However, proponents of National Interest Projects are still required to engage with the Minister regarding these authorizations and potential conditions. The goal of the Act is to accelerate authorizations, not eliminate them. Therefore, proponents of National Interest Project are still required to apply for each applicable authorization from the appropriate agency, provide all required information, and pay applicable fees.
Once a project is deemed a National Interest Project, the Minister will prepare a document enumerating all authorizations that the project would have ordinarily needed to proceed, as prescribed by the statutes and regulations listed in Schedule 2 of the Act (the “Document”). In preparing the Document, the Minister must: (1) ensure that the proponent has taken all measures ordinarily required to obtain each authorization in the Document; (2) consult with the minister responsible for issuing each authorization set out in the Document to identify any conditions that should be specified in the Document; (3) undertake a national security review for all state-owned or foreign investments and ensure measures have been taken to protect national security interests; and (4) consult with any Indigenous peoples who may be adversely affected by the project.
Before issuing a Document in respect of a project to which the Canada-Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act applies, the Minister must consult with the Canada-Newfoundland and Labrador Offshore Energy Regulator with respect to the conditions that should be set out in the Document. If the project is governed by the Nuclear Safety and Control Act and/or the Canadian Energy Regulator Act, the Minister must confirm with each applicable regulatory body that the project will not compromise public safety.
National Interest Projects subject to the Impact Assessment Act (the “IAA”) will experience a streamlined approval process as well. National Interest Projects are exempt from compliance with sections 9 to 17 and 18(3) to (6) of the IAA. As a result, proponents are not expected to meet specific Indigenous consultation and detailed project description requirements; assessments will proceed without the planning phase; decisions by the minister and Cabinet pursuant to sections 60 and 63 of the IAA will be deemed to be made in support of the project; and the timelines set out in section 18(1) of the IAA will not apply.
Once issued to the proponent, the Document serves as a substitute for each of the authorizations listed within.
The Act is light on timelines and silent on the timeline within which the Minister must issue the Document after a project is deemed a National Interest Project. However, the Government of Canada has indicated that the policy goal of the Act is to shorten the approval process for National Interest Projects to two years. Once issued a Document, a proponent must start their project within five years, otherwise the Document will expire.
Funding for National Interest Projects
Finally, the Act is silent on funding for National Interest Projects. However, Budget 2025 announced the following with respect to the federal government’s intentions:
- for the Major Projects Office to help structure and co-ordinate financing from the private sector, provincial and territorial partners, and the federal government, including through the Canada Infrastructure Bank, Canada Growth Fund, and the Canada Indigenous Loan Guarantee Corporation;
- to provide guidance to Crown corporations through the application of a strategic financing framework that will advance a unified and coordinated approach to financing across the government’s Crown corporations, departments, and agencies. The federal government states that this will help ensure that Crown corporations are prioritizing nation-building projects where possible and coordinating their support to unlock projects while delivering value for money for taxpayers;
- to amend the Canada Infrastructure Bank Act to increase the Canada Infrastructure Bank’s statutory capital envelope from $35 billion to $45 billion and to enable the Canada Infrastructure Bank to make investments in any nation-building projects that have been referred to the Major Projects Office, regardless of sector or asset class, as long as they fall within the Bank’s legal mandate. The federal government states that this will unlock more projects with the partnership of private investment; and
- for the Canada Indigenous Loan Guarantee Corporation to work with Indigenous investors on greenfield (new build) projects that will generate economic prosperity for Indigenous communities for generations to come.
Final thoughts
The Act affords significant regulatory benefits to National Interest Projects. Project proponents are therefore well advised to consider whether their projects may qualify for consideration by the Minister and Cabinet. The Act also affords the federal government significant discretion in determining whether projects are in the national interest and only time will tell how the Minister and Cabinet apply the Act – and their discretion – in practice.
[i] Currently the Honourable Dominic LeBlanc, President of the King’s Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy.
This client update is provided for general information only and does not constitute legal advice. If you have any questions about the above, please contact the authors.
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