Feds propose 'economic zones' to fast-track approvals for major projects

OTTAWA — The federal government is proposing the creation of economic zones, a measure among a suite of proposals to fast-track the approval processes for major projects to just one year.

On Friday, the federal government launched a 30-day consultation period with Indigenous people, the Canadian public, provinces and territories, on potential changes to regulation around major project approvals.

“Today, we’re launching public engagements on proposed legislative and regulatory reforms aimed at simplifying and streamlining the approval processes for all major projects submitted to the federal government, while obviously maintaining robust environmental protections and preserving the rights of Indigenous peoples,” said Intergovernmental Affairs Minister Dominic LeBlanc, during a press conference in Montreal on Friday.

Among the proposals is the establishment of economic zones through regional impact assessments.

“These zones would cover areas like transportation corridors, telecommunications networks, energy production and transmission, and industrial regions,” the discussion paper said.

“Setting up these zones ahead of major developments would remove the need for separate project reviews, make the permitting process simpler, and reduce risks for investors,” it added.

Under the proposal, cabinet would have the authority to decide that certain developments within specific zones are pre-approved, subject to the conditions of the project themselves. The discussion paper added that First Nations would be a “key part” of this process.

The federal plan mirrors a similar one in Ontario, which passed its own economic zone law last year to help accelerate approvals of major projects in the Ring of Fire.

Bill 5 has been criticized by First Nations and is currently being challenged in the courts by environmental groups, who argue the law bypasses the role of the legislature and gives too much power to cabinet.

Among the proposals, is federal reviews that take no more than a year, by allowing an impact assessment and permit review process to happen simultaneously. Another recommendation aims at creating a regulatory system that ensures only one federal decision is needed for major project approvals.

Other proposals in the discussion paper include the Canada Energy Regulator [CER] having sole responsibility to review international and interprovincial pipelines, transmission lines, and offshore renewable energy projects.

“Projects overseen by the CER would no longer require a separate impact assessment under the IAA [Impact Assessment Act],” the discussion paper read, adding that cabinet would decide whether the project is in the public interest for pipelines with lengthy routes.

The Canadian Nuclear Safety Commission will be responsible for reviewing nuclear and uranium projects.

Another proposal is to establish a Crown Consultation Hub within the Impact Assessment Agency of Canada, which will allow an Indigenous group affected by a project to go through “one clear and coordinated consultation process for each project.”

In addition, the discussion paper also proposes giving cabinet “limited power” to exempt projects from the application of the jeopardy test for species at risk, but only if the proponent has made reasonable efforts to alleviate the impacts to at-risk species.

The government said it will move quickly to table legislation after the engagement period has ended.

The proposed changes come as Ottawa has faced criticism by industries for taking too long to approve major projects like mines, ports, pipelines, nuclear facilities and transportation infrastructure.

Last year, the federal government passed Bill C-5, which allows certain projects to be fast-tracked if they’re deemed in the national interest. Friday’s proposed changes would reform the regulatory system for all major projects.

Environmental groups denounced the proposal.

“This proposal suggests, without evidence for need, that Canada should sacrifice the rule of law and our most sensitive species and ecosystems in order to build pipelines and other projects,” said Tim Gray, executive director at Environmental Defence Canada, in a statement.

“If approved, this proposal will take Canada back to a more dangerous, toxic and destructive time and leave Canadians facing impacts that could last for generations,” he added.

LeBlanc dismissed claims that the proposed changes would trample on environmental rights.

“We can make more efficient, from an investment perspective and from an economic competitiveness perspective, the approval of these projects while maintaining robust environmental protections and respecting the rights of Indigenous people,” said LeBlanc. “These can all be done at the same time.”

Bryan Detchou, senior director of natural resources, environment and sustainability at the Canadian Chamber of Commerce, said Canadian businesses will be ready to do their part over the 30-day consultation period.

“The promise of “one project, one review” is a key element of providing predictability for businesses and investors who initiate and build major projects,” said Detchou, in a statement.

“We hope the government is ready to work with the industry and truly peel back some of the red tape layers that have been holding back business success,” he added.

Cherish Francis, press secretary to Assembly of First Nations National Chief Cindy Woodhouse Nepinak, said an initial review of the proposed changes is “raising many flags.”

“The National Chief will be holding an emergency meeting with the Assembly of First Nations executive before providing a formal response next week,” said Francis in a statement.

“We support economic growth and prosperity for all – but not at the expense of our rights and of the environment.”

National Post

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