Crisis and Opportunity: Understanding Bill C-39’s Proposed Changes to the Building Canada Act (Part 4)

Wednesday, October 28, 2026

Introduction

On September 21, 2026, the Government of Canada introduced Bill C-39, the Building Canada Strong Act.¹ Bill C-39 proposes changes to several federal laws to shorten approval timelines, coordinate regulatory processes and help major projects move forward more quickly. As Canada has explained in its public materials and statements, the reason for the introduction of this bill and the changes that it proposes to make is the ongoing trade dispute with the United States.²

Over this series, themed “Crisis and Opportunity”, OKT will explain what Indigenous Governments need to know about Bill C-39. Our overarching message is simple: while Bill C-39 raises serious initial concerns, it provides only the blueprint for what is still to come. Much will be shaped by how Canada implements the bill and the additional changes contemplated in the Cabinet Directive on Getting Projects Built in Canada (the “Cabinet Directive”), which accompanied Bill C-39. As a result, there is an opportunity for Indigenous Governments to shape the new regulatory processes and clearly establish their expectations for how major projects should be developed within their territories.

Use the hyperlinks below to read more of this series, they will be updated as more posts are published.

1. A Time of Crisis and Opportunity: An Introduction to C-39 and the Cabinet Directive
2. A Time of Crisis and Opportunity: Understanding Amendments to the Impact Assessment Act
3. Crisis and Opportunity: How Indigenous Governments Can Position Themselves for Canada’s Major Projects Push
4. Crisis and Opportunity: Understanding Bill C-39’s Proposed Changes to the Building Canada Act
5. Crisis and Opportunity: Understanding Bill C-39’s Proposed Changes to Federal Approvals for Interprovincial Pipelines and Transmission Lines

In addition to the significant proposed changes to the Impact Assessment Act (“IAA”) discussed in our previous blog post, Bill C-39 would make two key amendments to the Building Canada Act, Prime Minister Carney’s key major projects legislation that was passed last year. First, it will allow Canada to fast-track projects with designated “regions of national interest”. Second, it will vary pre-existing conditions imposed on projects before Cabinet designated them in the national interest.

Creating National Interest Regions

The proposed changes would allow Cabinet to designate “regions of national interest”. This new category of national interest designation under the BCA would fast-track projects within a geographic area if they satisfy certain Cabinet-specified criteria.

Similar to the BCA’s existing project of national interest framework (discussed in our previous post on the West Coast Oil Pipeline designation), the first step in the proposed fast-tracking process is Cabinet’s decision to designate a region of national interest. Bill C-39 would grant Cabinet broad discretion to set the boundaries of the region and the criteria that would apply to applicable projects. It will allow Cabinet to make designation decisions based on any factor that Cabinet considers relevant, including (if relevant) the extent to which the eligible projects would:

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.³

Before making its designation decision under Bill C-39, Canada would be required to conduct a regional assessment of the impacts of the anticipated projects within the region and consult with relevant provincial and territorial governments and Indigenous peoples that may be adversely affected.⁴ However, identifying “anticipated projects” in advance is an exercise in guesswork that is unlikely to be particularly precise. It appears that whether or not a project is ‘anticipated’ within the meaning of these provisions, designating a National Interest Region would nevertheless benefit any projects proposed for that region.

Cabinet’s recent decision to designate the Pacific Link Pipeline as a project of national interest makes it clear that Cabinet is using broad discretion to determine what factors are relevant to its designation decision—extensive reasons justifying Canada’s decision are not required.

Once designated, proposed projects within the designated regions that meet Cabinet’s criteria will generally undergo the same streamlined approval process as the BCA’s national interest projects. But there is one major difference: although Canada will conduct an assessment for each project within a designated region, that project-specific assessment cannot overlap with assessments that the Minister is satisfied were covered by the regional assessment in the designation stage. Similarly, the Minister can exempt the project from any normally-required authorizations if they are satisfied the regional assessment performed during the designation stage renders that authorization unnecessary.⁵

The proposed pre-designation regional assessment process has potential benefits for Indigenous governments: at the designation stage, Cabinet will be required to consider the cumulative impact of projects across the region upfront—before any given project will be approved. Indigenous governments can therefore play a key role in setting the agenda before regional development kicks off.

At the same time, the initial regional assessments are likely to create significant risks for Indigenous governments. Once the regional assessment is complete and designation occurs, Cabinet will not consider any impact in a project-specific assessment that was addressed to its satisfaction in the regional assessment stage. This power is broad: Bill C-39 imposes few requirements for how Cabinet uses this power. If Bill C-39 passes, Indigenous governments must therefore be sure to raise all relevant concerns in the initial regional assessments at the designation stage—otherwise, Canada may argue that they’ve missed their chance altogether.

Varying Pre-Designation Project Conditions

In addition to the proposed creation of “regions of national interest,” Bill C-39 would also allow the Minister to add, remove, or amend any condition that was imposed on a project before the project was designated as a project of national interest.⁶

For example, Canada has already completed an environmental assessment of the proposed Roberts Bank Terminal II container facility under the Canadian Environmental Assessment Act 2012; the project is currently under review for various other federal permits. If Canada moves ahead with designation as expected, Bill C-39’s proposed changes would allow the Minister to revisit the conditions imposed by the federal Review Panel.⁷

Bill C-39 requires the Minister to consult with Indigenous governments and relevant federal departments before making any changes using this power.

What this Means for Your Indigenous Government

• Bill C-39’s creation of “regions of national interest” creates opportunities and risks for Indigenous governments seeking to have a say on development in their territories.
  • The regional assessment allows Indigenous governments to make their concerns heard before regional development begins.
  • At the same time, the process risks limiting opportunities for Indigenous governments to raise projects-specific concerns after designation takes place. Once Cabinet sets project criteria during the designation stage, the Minister is required to issue a conditions document approving any proposed project that meets these criteria. While Cabinet will still likely conduct project-specific assessments and consultation, this process cannot overlap with any effects that the Minister is satisfied were already assessed by the regional assessment.
• This means that Indigenous governments should not assume that they can raise their concerns in subsequent, project-specific consultation processes. Although the initial regional assessment will necessarily involve speculation about the actual projects that could eventually occur in the region, Indigenous governments should treat consultation at this initial stage to comprehensively raise any and all concerns and proposed accommodation measures that could arise.
• Indigenous governments should not assume conditions imposed by Canada are permanent—Bill C-39 would allow Cabinet to change conditions imposed on designated projects before those projects were designated. This means that accommodation measures promised by proponents and regulators should be guaranteed in other, legally binding mechanisms such as impact benefit agreements rather than relying on the regulatory process.