Canada, Ontario sign agreement to streamline environmental reviews for major projects

The federal government and Ontario have signed a new cooperation agreement aimed at accelerating major infrastructure projects by streamlining environmental and impact assessments, as Canada moves to diversify its economy amid growing global trade uncertainty.

Prime Minister Mark Carney and Ontario Premier Doug Ford announced the agreement on December 16, establishing a “one project, one review” approach for major infrastructure initiatives in the province. The deal is designed to reduce regulatory duplication between federal and provincial governments while maintaining environmental protections and Indigenous rights.

Under the agreement, Canada and Ontario will adopt a more flexible assessment process that allows projects to proceed using either Ontario’s environmental review system or a coordinated federal-provincial process, depending on the circumstances. The goal, officials said, is to deliver major projects faster while ensuring strong oversight.

“Canada’s new government is focused on what we can control — building a stronger, more sustainable, more independent Canadian economy,” Carney said in a statement. “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.”

The Ontario agreement is the third of its kind for the federal government. Similar deals have already been signed with British Columbia in 2019 and New Brunswick earlier in December. Consultations with Manitoba and Prince Edward Island have concluded, with agreements expected to be finalized, while negotiations with Alberta are ongoing and targeted for completion by April 1, 2026.

According to Statistics Canada, regulatory requirements increased by 37% between 2006 and 2021, a trend the federal government says has reduced business investment growth by 9% — a key driver behind the push for regulatory reform.

The Ontario agreement also aligns with the federal government’s broader Major Projects Office (MPO) initiative, created under the Building Canada Act, which came into force in June 2025. In November, Carney announced a second tranche of projects referred to the MPO, representing tens of billions of dollars in potential investment.

Together, the first two tranches of MPO projects could total more than $116 billion in investment and support thousands of jobs across the country. The federal government has committed $40 million over two years to boost Indigenous participation in major projects and has expanded the Indigenous Loan Guarantee Program from $5 billion to $10 billion.

The Impact Assessment Agency of Canada will continue to provide Ontario with federal expertise, including support on environmental protection, Indigenous engagement, and sustainable project development. Both governments say the agreement preserves their respective responsibilities to protect the environment and uphold the rights of Indigenous Peoples.

The announcement comes as Canada faces significant economic disruption driven by shifting global trade relationships, particularly with the U.S. The federal government says it is prioritizing domestic infrastructure development and trade diversification to build a more resilient and independent economy.

Ford said the agreement would remove regulatory barriers that have slowed large-scale development in Ontario, including projects in the mineral-rich Ring of Fire region.

“With this historic agreement, our two governments are working together to remove unnecessary red tape and regulatory duplication that has stood in the way of nation-building projects for too long,” Ford said.

Federal Intergovernmental Affairs Minister Dominic LeBlanc said the streamlined approach would help attract investment and provide greater certainty for major project proponents.

“By adopting a ‘one project, one review’ approach in Ontario, we are simplifying major project assessments, catalyzing new investment, development, and good-paying careers,” LeBlanc said.

Environment and Climate Change Minister Julie Dabrusin emphasized that environmental protection and Indigenous rights would not be compromised under the new framework.

ECCC seeks feedback on red tape, other challenges around Environmental Emergency Regulations

Environment and Climate Change Canada (ECCC) has opened a public consultation as part of a mandatory review of the Environmental Emergency Regulations, 2019 (E2 Regulations), inviting stakeholders to comment on potential improvements to the federal framework governing chemical accident preparedness and response.

The consultation opened December 15, 2025, and will close to new submissions on February 13, 2026. According to ECCC, the review will assess how the regulations have functioned since changes were implemented in 2019 and identify opportunities to reduce administrative burden, streamline requirements, and address regulatory duplication, while maintaining protections for the environment and human health.

Some 4,000 facilities across Canada have registered under the E2 Regulations reporting system, which covers sectors ranging from chemical manufacturing to oil and gas extraction, as well as utility operations and plastics manufacturing. The regulations address six hazard categories: aquatically toxic; combustible; explosion hazard; pool fire hazard; inhalation hazard; and oxidizers that may explode.

Examples of the functions of the regulations include the implementation of environmental emergency plans that consider prevention, preparedness, response, and remediation, as well as written reports of any environmental emergency, and public communications.

Since the regulations were introduced in 2003 and updated in 2019, ECCC says industry stakeholders and non-governmental organizations have raised several implementation challenges that arose from the 2019 changes. At that time, the department added new definitions and periodic reporting requirements for facilities, substances and environmental emergency plans were introduced. Additionally, 33 more substances were added to the list of regulated substances in Schedule 1.

Issues identified by stakeholders since the changes include:

• Regulatory overlap and duplication with other federal or provincial requirements
• Reporting burden and duplicative submissions
• The potential for class-based groupings of substances
• Eliminating the use of “worst-case scenario” assumptions
• Providing exclusions for propane in smaller-scale applications, such as homes, farms, and outfitters
• Clarifying the meaning of “bringing into effect” an environmental emergency plan
• Improving public communication requirements
• Better defining emergency scenarios and potential impact distances.

For a complete description of the identified issues, visit the ECCC website. 

To address these concerns, ECCC is seeking feedback on any challenges faced from the regulations, and has noted several key points and questions to consider:

• Concerns with the mandate and scope of the E2 Regulations
• Challenges encountered in implementing the regulations and how they affect compliance with requirements such as maintenance programs, emergency planning, reporting, exercises, and public notifications
• Whether the regulations prevent the use of industry best-practice equipment or processes for managing hazardous substances
• Ways to streamline requirements for small businesses without compromising environmental or human health protections
• Improvements that could make the E2 Regulations Online Reporting System more user-friendly, noting that its use is mandatory.

The review also aligns with broader federal efforts to reduce red tape, as outlined in the Red Tape Reduction Plan.

Calgary enters Stage 4 water restrictions following another major feeder main break

For the second time in less than two years, the City of Calgary has activated its Municipal Emergency Plan and opened the Emergency Operations Centre as crews respond to a major rupture in the Bearspaw South feeder main, east of the Sarcee Trail and 16 Avenue N.W. interchange.

City officials say the December 30th break is linked to a critical piece of infrastructure that transports the majority of Calgary’s drinking water from the Bearspaw Water Treatment Plant — the larger of the city’s two treatment facilities.

“Calgary relies on the Bearspaw South Feeder Main to transport the majority of its water from the Bearspaw Water Treatment Plant,” said Calgary Emergency Management Agency (CEMA) Chief Susan Henry. “With the feeder main out of service, we have had to make emergency adjustments in our underground pipe network to move water from the smaller Glenmore Water Treatment Plant throughout the city.”

As a result, Calgary remains under Stage 4 Water Restrictions, the most severe level, while treated water supplies remain under significant strain.

The latest break follows a major failure on June 5, 2024, involving the nearly 52-year-old, 11-kilometre Bearspaw feeder main — an incident that triggered months of strict water restrictions across the city. A report from Associated Engineering into that break suggested that microcracking along the protective mortar outer layer of the pipe, high chloride levels in the soil at various locations, as well as severe damage and corrosion impacting the pipe’s prestress wires, all played roles in the pipe’s eventual failure.

As of January 8, the damaged section of the pipe has been removed, and the new pipe is now in place and welded. Crews have begun backfilling the area and will then start repairing the road above the pipe once all the critical steps to restore water service have been completed.

Recently, seven kilometres of pipe was emptied. Local officials said on January 10 that refilling the pipe will require approximately 22 million litres of water.

Water Use Exceeds Targets

According to the city, water use on January 3, rose to 495 million litres (ML) — exceeding the city’s acceptable usage goal of 485 ML. That threshold is designed to ensure sufficient water remains available for drinking and life-safety needs such as firefighting and emergency response.

“The urgent need to reduce our water use still exists today,” Henry said. “Whether that means a shorter shower or fewer flushes, there are many ways we can all ensure our water system remains stable while crews work on this critical repair.”

City officials noted that the first Monday of 2026 marked a return to work and school for many residents, increasing pressure on the water system following the new feeder main break.

“We’re continuing to remind everyone to adjust their water use habits and help conserve our water system,” Henry said.

Storage Levels in the Red Zone

As of January 4, treated water storage stood at approximately 496 million litres, well below the 600 million litres required to stabilize the system and maintain emergency backup capacity. On January 6, Calgarians used 511 million litres of water, above the target zone of 485, however, by January 11 usage began to hover below 500 million litres.

Shortly after the break, Calgary experienced a net loss of approximately 100 million litres, placing the system in the Red Zone — a status indicating water treatment plants are operating at full capacity with no redundancy.

City officials are urging residents to immediately reduce water use by:

• Limiting showers to three minutes or less
• Flushing toilets only when necessary
• Running dishwashers and laundry only when full

“These small actions make a big difference,” said Henry. “Every litre saved helps stabilize the system and speeds up recovery.”

Repairs Ongoing in Bowness and Montgomery

Crews continue to repair the large water main break affecting the Bowness and Montgomery areas. City officials say the break caused a significant loss of water from the system, making conservation critical as repairs continue.

“This is not how anyone wanted to start the new year,” Henry said. “We understand the disruption this has caused to daily routines, businesses and families, and we appreciate the patience and cooperation Calgarians have shown.”

The City is also working closely with its largest water users to reduce consumption and is asking businesses to limit non-essential water use.

The mandatory Stage 4 water restrictions will remain in place until the pipe is fully restored and service is back to normal.