Bill C-39: Building Canada Strong Act

Division 7 of Part 1 of the bill amends the Fisheries Act. As introduced, it would:

• allow third parties to use habitat credits
• create an in-lieu fee mechanism, with payments directed to the Environmental Damages Fund
• shift certain regulation-making powers to the Minister of Fisheries

This matters because the habitat banking regime created by Bill C-68 in 2019 did not accommodate standalone third-party habitat banks.

The bill sets a one-year implementation target after Royal Assent.

The bill also amends:

• the Species at Risk Act
• the Impact Assessment Act
• the Canadian Energy Regulator Act

Nothing changes yet. Until Bill C-39 receives Royal Assent, and Fisheries and Oceans Canada puts the supporting regulations and policies in place, the current Fisheries Act rules for authorizations and offsetting still apply. Plan your project on that basis.

If the bill passes as introduced, you may have more options for meeting an offsetting requirement:

• buying credits from a third-party habitat bank, instead of building your own offset project
• in some cases, paying a fee in lieu of an offset, with the money going to the Environmental Damages Fund

Much of the detail is still unknown. Which projects can use credits or fees, how credits are measured and priced, the areas each bank can serve, and how fees are set would all be decided in regulations and policy after Royal Assent. The bill sets a one-year implementation target after Royal Assent, so expect a gap between the bill passing and the new options being usable.

What you can do now:

• If your project is likely to need a Fisheries Act authorization in the next few years, build offsetting into your schedule and budget early.
• Talk to DFO early about your project and what offsetting it may need.
• Tell COR about your offset need. We’ll look for restoration projects that could fit, and the demand you share helps show where habitat banks are needed.

This is general information, not legal or regulatory advice.