The relatively short history of the Impact Assessment Act (IAA), which was enacted in 2019, has been marked by controversy and two court decisions, one by the Supreme Court of Canada (SCC).
The IAA provides for the assessment of the environmental, social, and economic impacts of major projects that are likely to have significant effects in areas of federal jurisdiction (dams, mines, ports, pipelines, etc.). The SCC’s decision (October 2023) essentially held that the IAA went too far, and portions of the IAA were unconstitutional.
From Tory’s: “In response to the Supreme Court’s decision, Canada amended the federal Impact Assessment Act in 2024 to better align with the government’s commitment to achieve ‘one project, one assessment.’ The mandate of the IAA now provides that Canada, the Minister of the Environment (the Minister), the Impact Assessment Agency (the Agency) and federal authorities, in administering the IAA, ‘must exercise their powers in a manner that … promotes cooperation among jurisdictions.’”
This brings us to December 2025, when the federal government signed a cooperation agreement with Ontario to streamline and expedite the project assessment process. According to the blog by Torys, until now, British Columbia was the only province with a similar cooperation agreement.
Under the agreement, the federal government will review the assessment of the roads to the Ring of Fire Region by June 2026 (Photo by Justin Ziadeh on Unsplash).
One Project, One Process, One Decision Model
The December 18, 2025, News Release from the Ontario Government states: “Ontario and Canada have signed a historic cooperation agreement that will significantly streamline environmental approvals for major infrastructure and resource projects through a new ‘one project, one process, one decision’ model that is now in effect. The agreement will remove duplicative and overlapping federal impact assessments from Ontario’s world-leading environmental assessment process to build infrastructure faster and unlock resource development across the province, helping to build a more competitive, resilient and self-reliant Canadian economy.”
Ring of Fire
The news release also states that the agreement includes a “side letter” between the federal and provincial governments, where the Impact Assessment Agency of Canada commits to completing its review of the assessment of the roads to the Ring of Fire no later than June 2026.
As we shared in our October 31, 2025, blog, in September, Ontario Minister Greg Rickford announced a $61.8 million investment to begin construction of the “corridor to prosperity” to provide year-round access to the Ring of Fire Region.
Building Major Projects Faster
The Tory’s blog states that, based on British Columbia’s experience with a similar agreement, there has been a reduced regulatory burden, an elimination of duplicative assessments, and projects have been expedited.
Prime Minister Mark Carney said, “Our agreement with Ontario will build major projects faster, helping to diversify our trade partners, strengthen our industries and empower more Canadians with high-paying careers. We are building Canada Strong, and we’re building bigger and faster together.”
This recent agreement is a continuation of a series of changes to federal and provincial regulations over the past several months. The impetus for these changes is to remove obstacles that may be hindering Canada’s ability to compete in the global economy. See our November 25, 2025, blog, “Changing Environmental Regulations and Potential Changes to Greenwashing.”
If you need assistance with an environmental assessment, permitting, etc., we can help. For more information or for assistance, contact Christopher Paré, P.Geo., at 519-948-7300, Ext. 114.
Alan Hahn drafted this blog. Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for more than 45 years. He has written hundreds of blogs and articles. His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.
Katherine Rey, EP, reviewed this blog. Katherine is a project manager at Dragun’s Windsor, Ontario, office. Katherine has more than 17 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning. See Katherine’s bio.
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