The federal government is proposing reversing the order of pipeline approvals, allowing cabinet to green-light a new project prior to the completion of technical assessments and approvals.
The proposed changes come less than two months before Alberta is expected to submit a proposal for a new pipeline to the west coast.
The idea of switching the order of the approval process by giving it first to cabinet and then to the civil service for a technical review is included in a sweeping set of proposals released by Ottawa on Friday.
The government says the change will ensure proponents know whether there is political buy-in before they go through the expensive and time consuming process of a technical review. The goal is to “reduce risks and costs for investors,” it said in a press release.
Among the other proposed changes are the promise of a maximum one-year federal review period for all projects, regulatory changes to ensure a single federal decision-making process and the creation of “economic zones” across the country.
The federal government released two discussion papers with the proposed changes, kick-starting a 30-day consultation window.
“For too long, nation-building infrastructure – including ports, railways, energy corridors, critical mineral developments, and clean energy – has been bogged down in red tape, leaving enormous investment on the table,“ the government said in its press release.
“The process was too long, too repetitive, and put the onus on the proponent to navigate the system.”
Prime Minister Mark Carney endured early criticism last year over his government’s handling of consultations with Indigenous groups around the rollout of the Major Projects Office and the rapid passage of his signature law, Bill C-5, meant to reduce interprovincial trade barriers and fast-track projects that the government deems in the national interest.
Friday’s announcement makes repeated reference to the need to consult with Indigenous groups and says the government will make engagement easier.
It proposes creating a Crown Consultation Hub within the Impact Assessment Agency of Canada that would be responsible for ensuring that each Indigenous group affected by a major project “goes through one clear and coordinated consultation process for each project.”
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 the Canadian Chamber of Commerce.
“As of yet, we still see a persistent lack of confidence among businesses and investors, which is why they have been stuck on the sidelines,” Bryan Detchou, the chamber’s senior director of natural resources, environment and sustainability, said 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. That’s how we’ll get the job done.”
Mr. Detchou said while members welcome the consultation, they hope “it turns to quick action once it’s concluded.”
More to come.