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.

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.

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.

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 ensures federal reviews take no more than a year, by allowing an impact assessment and permit review process to happen simultaneously.

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.

More to come.

National Post

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our newsletters here.