What is Bill C-5?

Bill C-5 is a federal law that came into effect on June 26, 2025, after receiving Royal Assent. It was supported by both the Liberal and Conservative parties. The bill includes two key components:

  • The Free Trade and Labour Mobility in Canada Act;
  • The Building Canada Act – the part that has drawn the most public attention.

What does the Building Canada Act do?

The legislation established the Building Canada Act, which received much public attention as it would allow the federal government to select ‘nation building’ projects to fast-track for development. The Act’s purpose is to improve regulatory certainty and investor confidence to quickly build chosen projects that better Canada’s prosperity, national security, economic security, national defence and national autonomy.

Provincial and territorial premiers were invited to submit ideas for projects, but the federal cabinet alone will determine which ‘nation building’ projects are fast-tracked. Once a project is selected, the federal Minister must issue a decision letter to the developer which outlines any conditions which must be met in the approval. Chosen projects would be handled by a new “Major Federal Projects Office” to provide proponents with a single contact point and a goal to approving projects within two years. The Major Federal Projects Office will be open by September 1, 2025.

Before a ‘nation building’ project is determined, it first requires consultations with Indigenous people, provinces and territories, and a 30-day notice must be published in the Canada Gazette.

What does the Building Canada Act NOT do?

The Act does not remove specific environmental protections or the rights of Indigenous peoples, including meaningful consultation.

The Act does not prevent other large infrastructure projects from being developed if they are not selected as ‘nation building.’

The Act does not go on indefinitely; it will be in effect for five years after coming into force.

The Act does not specify any requirements for the federal government to financially support projects. Instead, Minister Hodgson stated: “What’s going to happen is over the next weeks and months, proponents are going to have to come forward to propose projects. This is not the federal government building projects. This is us creating the environment through the act to give them regulatory clarity and certainty, so they’ll put their money to work for Canadians.”

What does ‘nation building’ mean?

Projects will be selected based on their ability to:

  • strengthen Canada’s autonomy, resilience and security;
  • provide economic or other benefits to Canada;
  • have a high likelihood of successful execution;
  • advance the interests of Indigenous peoples;
  • contribute to clean growth and to meeting Canada’s objectives with respect to climate change.

What are other priorities for ‘nation building’ projects?

Five key areas were discussed by federal and provincial leaders in June, which included:

  • the Eastern Energy Partnership;
  • the Western and Artic Corridor;
  • Critical Minerals Pathways;
  • the Next Stage of Nuclear;
  • Export Diversification Infrastructure.

Prime Minister Carney has also stated that an oil pipeline project is “highly, highly likely” to be chosen as part of a ‘nation building’ project.

Which ‘nation building’ energy projects have been pitched from Atlantic Canada?

Several potential ‘nation building’ energy projects have been discussed by the Atlantic Premiers in May, June, and July:

New Brunswick energy priorities stated publicly:

  • The Government of New Brunswick is advocating to establish an Eastern Energy Partnership with the Atlantic provinces and Quebec. This Partnership aims to supply hydro and wind power to Western Canada and the New England states. The project includes expanding electricity transmission infrastructure across Atlantic Canada to enable more electricity sharing and exports. This project is not unlike the Atlantic Loop project and has an estimated cost of $8 billion.
  • Minister Hodgson stated that the Eastern Energy Partnership has resonated within government and “potential proponents (and governments) are behind that and working on that.”
  • Premier Holt stated that the Eastern Energy Partnership would “not likely to be submitted under one” overarching project, but in individual components with those more ready being submitted in late Summer 2025.
  • Discussions for the Partnership have also included hydrogen for export to Europe from Atlantic Canada, although public details are limited.
  • The province is proposing to build a new nuclear generation capacity. Options for small modular reactors (SMRs) and new CANDU reactors have been mentioned. The province has also been in discussion with Ontario Power Generation about partnership in the projects.
  • Premier Holt has also pitched expanding natural gas pipeline infrastructure from Quebec City into New Brunswick (to Belledune) and onto Fredericton to connect with the existing Maritimes and Northeast Pipeline. Nova Scotia and New Brunswick currently rely on natural gas imports via the United States. However, Minister Hodgson has stated, “I think today the costs associated with that pipeline would be very significant,” and added, “I’m not aware of a private sector proponent who is advocating for that today.”

Prince Edward Island (public) energy priorities:

  • The Government of Prince Edward Island supports the Eastern Energy Partnership.
  • Specifically, Premier Rob Lantz has identified expanding electricity transmission capacity from New Brunswick to the Island by expanding subsea cables (doubling the current 560 MW capacity, which would cost an estimated $200 million for the components).
  • The province is asking for federal funding to support this new transmission infrastructure, as well as access to three-phase power.

Nova Scotia (public) energy priorities:

  • The Government of Nova Scotia supports the Eastern Energy Partnership.
  • The provincial government is promoting a ‘Wind West’ campaign where the province hopes to see 40 GW of offshore wind generation developed over the next 10 years. This construction would be supported by a combination of private and public sector funding, and the majority of the energy would be exported out of Atlantic Canada via new transmission lines.

Newfoundland and Labrador (public) energy priorities:

  • Premier Hogan promoted at least three major Newfoundland and Labrador projects as ‘nation building’ opportunities, including the planned expansion at Churchill Falls, new hydroelectric capacity at Gull Island, and the launch of the Bay du Nord oil and gas project. Land surveys for the Gull Island project began the week of July 9.

What concerns are there with the new Building Canada Act?

Concerns include:

  • During the National Virtual Forum on Bill C-5 on June 16, Chiefs of the Assembly of First Nations raised strong concerns over the rushed legislative process and the lack of meaningful consultation, among others. The Prime Minister held the First Nations Major Projects Summit on July 17, and announced an Indigenous Advisory Committee and dedicated $40 million in funding for Indigenous participation.
  • The Act allows the federal government significant authority over specific projects it deems ‘nation building.’
  • There is still a lack of clarity on the process for application and oversight, in addition to what financial contributions the federal government may make to the selected projects. The first tranche of ‘nation building’ projects could be announced in late summer or fall.