Alberta welcomes new federal fast-track infrastructure bill

Alberta’s government and business community are celebrating the Building Canada Strong Act, the federal government’s sweeping new legislation to speed up project approvals and fortify trade corridors. 

The new legislation, introduced by the Liberal government on Monday, features the latest in a series of changes to the federal regulatory approvals process aimed at expediting major projects across the country — a major point of contention in relations between Alberta and Ottawa.

In a statement to Canada’s National Observer, the office of Minister of Energy and Minerals Brian Jean said Alberta has always advocated for reforms that improve regulatory certainty, reduce duplication and balance timely approvals against environmental and safety standards.

“We support any move by the federal government to shorten approval times and red tape for major nation-building infrastructure projects,” said the statement.

The federal government’s previous major project approvals framework has been frequently cited as an example of federal overreach by critics in Alberta.

Bill C-69, or the Impact Assessment Act, has been referred to as the “No More Pipelines Act” by both Premier Danielle Smith and her predecessor, Jason Kenney. The bill gave Ottawa the power to determine whether major projects were in the public interest and intervene to prevent them from proceeding on the basis of social or environmental concerns. 

A 2023 Supreme Court of Canada decision ruled in Alberta’s favour, describing the bill as “largely unconstitutional.” 

In the last few months, Prime Minister Mark Carney’s Liberal government has been chipping away at the legislation. The Building Canada Act (similarly named legislation to Monday’s Building Canada Strong Act, but passed in June) created the Major Projects Office, headquartered in Calgary, to fast-track projects designated as nationally important. 

Monday’s bill expands Ottawa’s efforts to expedite approvals outside of the Major Projects Office by promising to complete project approvals within one year of a proponent submitting a comprehensive application. 

“Our standards are simple: one project, one review, one year,” said Dominic LeBlanc, minister responsible for Canada-U.S. trade, intergovernmental affairs and one Canadian economy, in a press release.

Business Council of Alberta President Adam Legge enthusiastically welcomed the legislation, which he said reflects the recommendations his organization has been advancing. He hopes parliamentarians pass and implement the bill “as quickly as possible.”

“This legislation represents a long-overdue recognition of the policy and regulatory barriers that have stood in the way of Alberta and Canada’s prosperity, growth and job creation through our ability to attract investment,” said Legge in a statement to Canada’s National Observer. 

The Calgary Chamber of Commerce, a long-time critic of the federal approach to approvals, says Alberta businesses are beginning to be persuaded by the changes.

“We started with a level of cautious optimism as to where the federal government has been heading,” said Ruhee Ismail-Teja, vice president of policy and external affairs, in an interview with Canada’s National Observer. “Coming out of the investment summit last week, we are now hearing from our businesses that there has been a fundamental shift.”

Ismail-Teja says the changes may even enable the revival of projects that withered under the previous regulatory regime. 

“The capital has been sitting on the sidelines for quite a few years, and now that we’re in a fundamentally different place, the conversation is that Alberta might have a second shot at some of the opportunities that we had a decade or so ago, when commodity prices were higher and there was a level of understanding around the value of the energy sector.” 

Alberta has been lobbying the federal government to send the proposed West Coast pipeline to the Major Projects Office. Ottawa has until Oct. 1 to determine whether the project meets the criteria for fast-tracking. A public consultation period about whether the pipeline qualifies for expedited approval closed on Friday. 

The new bill also includes provisions to reduce labour disruptions by raising the bar for ministerial intervention in disputes. Ismail-Teja hopes the move will help strengthen supply chains.

“Our supply chain ranking around the world is quite abysmal. Being able to provide the security that we will have labour to be able to operate our national supply chains is critical to being a valuable trading partner.”

She says the changes outlined in the act stand to increase reliability, which is an asset as Canada tries to diversify investment amid the ongoing trade battle with the United States.

“It gives the level of investment certainty needed for businesses to be able to move forward with projects, which is particularly important given Canada needs to rely on itself now more than ever.”