Bill C-5 and the Building Canada Act: Federal Government Seeks to Fast-Track ‘National Interest’ Projects

Bill C-5, the One Canadian Economy Act,^[1] received royal assent on June 26, 2025. The act enacts two new pieces of legislation: (1) the Free Trade and Labour Mobility in Canada Act,^[2] which intends to promote interprovincial trade and labour mobility in Canada; and (2) the Building Canada Act^[3] (“BCA”), which creates a new framework to designate and fast-track “projects in the national interest” (“National Interest Project(s)”).

This article focuses on the BCA. Below, we discuss the process for designating and approving National Interest Projects, as well as the first list of projects to be designated National Interest Projects.

The Building Canada Act

The stated purpose of the BCA is:

to enhance Canada’s prosperity, national security, economic security, national defence and national autonomy by ensuring that projects that are in the national interest are advanced through an accelerated process that enhances regulatory certainty and investor confidence, while protecting the environment and respecting the rights of Indigenous peoples.^[4]

To this end, the BCA provides for: (1) a process for designating National Interest Projects; and (2) an accelerated approval process for National Interest Projects.

Designation for National Interest Projects

The BCA authorizes the Governor in Council, on the recommendation of the Minister appointed pursuant to the BCA,^[5] to designate a project as a National Interest Project by adding the project to Schedule 1 of the BCA.^[6] Before making a recommendation, the Minister must consult with any federal ministers or provincial or territorial governments the Minister considers appropriate, as well as with Indigenous peoples whose rights, recognized and affirmed by s. 35 of the Constitution Act, 1982, may be adversely affected by the project.^[7] At least 30 days before any designation takes effect, the Governor in Council must publish a notice with the project name and description in the Canada Gazette and must consult with the government of the province or territory in which the project will be carried out.^[8] Projects may be added to Schedule 1 for up to five years following the BCA’s coming into force.^[9]

Section 4.1(1) of the BCA authorizes the Governor in Council to define, by order, what is meant by “national interest.”^[10] To date, the federal cabinet has not made an order defining what is meant by the term “national interest.” Nor has it tabled a report setting out the reasons for the delay and the expected timeline for the making of such an order, as is required by s. 4.1(3) if the order is not made within 15 days after the BCA came into force.^[11]

In deciding whether to designate a project as a National Interest Project, the Governor in Council may “consider any factor that the Governor in Council considers relevant, including the extent to which a project can:

1. strengthen Canada’s autonomy, resilience and security;
2. provide economic or other benefits to Canada;
3. have a high likelihood of successful execution;
4. advance the interests of Indigenous peoples; and
5. contribute to clean growth and to meeting Canada’s objectives with respect to climate change.”^[12]

Once a project is added to Schedule 1, a notice must be posted on a public registry maintained by the Minister.^[13]

Deemed Approval for National Interest Projects

Once a project is designated as a National Interest Project and is listed in Schedule 1 of the BCA, the BCA automatically grants the federal regulatory approvals (e.g., approvals under the Fisheries Act, Species at Risk, etc.^[14]) required to allow the project to proceed, subject to conditions to be determined.^[15] In effect, the BCA shifts the approval process from asking whether a project should proceed to how to get the project built.^[16]

The BCA also alters the application of the federal Impact Assessment Act^[17] (“IAA”). Where a designated National Interest Project is also a “designated project” within the meaning of the IAA (i.e., the project may be considered at risk for potential adverse effects in areas within federal jurisdiction), the National Interest Project is exempted from the impact assessment planning phase. Instead, the National Interest Project is deemed to require a federal impact assessment, and the remainder of the process in the IAA applies.^[18]

This deemed project approval does not, however, exempt the proponent of a National Interest Project from the requirement to take all measures that they are required to take, under an enactment, in respect of an authorization.^[19] The proponent must still, for example, provide any information and pay any fees that the proponent would be required to do with respect to each authorization.^[20] Additionally, Indigenous peoples whose s. 35 rights may be adversely affected by the project must be consulted.^[21]

Once the Minister is satisfied that these conditions have occurred, the Minister will issue a single approval document with a single set of binding conditions for the project.^[22]

For pipeline, power line and renewable energy projects regulated by the Canada Energy Regulator Act,^[23] the Minister must first consult with the Commission of the Canada Energy Regulator before issuing an approval document.^[24] The Minister may not issue an approval document unless the Minister receives confirmation from the Commission that it is satisfied that issuing the approval document will not compromise the safety or security of persons or the regulated project.^[25]

The Major Projects Office

To facilitate the approval of National Interest Projects, the federal government has established the Major Projects Office (“MPO”). The MPO is intended to serve as a single contact point for proponents of National Interest Projects. The MPO, through its review of National Interest Projects, seeks to “achieve a two-year timeline for all federal decision-making for major projects” and support “the implementation of the concept of ‘one project, one review’ through cooperation agreements with willing provinces.”^[26]

The First National Interest Projects

On September 11, 2025, Prime Minister Mark Carney unveiled the first set of projects to be considered for designation as National Interest Projects under the new BCA framework. According to the announcement, these five projects are projected to contribute more than $60 billion to the Canadian economy and create tens of thousands of jobs.^[27]

The first projects to be considered for designation are:

• LNG Canada Phase 2 (BC): doubling production of liquefied natural gas;
• Darlington New Nuclear Project (ON): development of a small modular reactor;
• Port of Montréal – Contrecœur Container Terminal expansion (QC): expansion of port capacity;
• McIlvenna Bay Foran Copper Mine (SK): development of a critical minerals mine; and
• Red Chris Mine expansion (BC): expansion of an existing copper and gold mine.^[28]

Next Steps

The Canadian federal government has signaled several further projects that may be brought forward for consideration to be designated as National Interest Projects. These include Wind West Atlantic Energy (wind power in Atlantic Canada); the Pathways Plus carbon capture and storage project in Alberta; an Arctic economic and security corridor (to support northern critical mineral projects); upgrades to the Port of Churchill; and the Alto high-speed rail corridor linking Toronto and Quebec City.^[29]

Notably, most of these projects are either directly energy-related or tied to critical minerals essential for clean energy transitions.^[30] No date has yet to be released regarding when the second series of projects being referred to the MPO for consideration will be announced.

[1] Bill C-5, An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, 1st Sess., 45th Parl., 2025 (assented to June 26, 2025).