New exclusions for small federal projects

Summary#

The federal government has replaced the old exclusion order with the Order Designating Certain Excluded Classes of Projects under the Impact Assessment Act. The Order, registered and brought into force on February 28, 2025 (published in the Canada Gazette on March 12, 2025), expands the list of small, routine projects on federal lands or outside Canada that do not need a formal environmental-effects determination.

What it does#

• Replaces the previous Designated Classes of Projects Order (2019) and lists many more low-risk project types that authorities do not have to formally review under the Impact Assessment Act.
• Adds new size and distance limits so small works can be excluded, including examples such as:
  • stand-alone structures and small works up to 1,000 m2 on developed land or 100 m2 on undeveloped land;
  • very small structures on land (25 m2) and in water (10 m2);
  • special-purpose buildings (schools, hospitals, community centres) up to 1,500 m2 on developed land;
  • modification, removal, or replacement activities with higher thresholds (often 1,000 m2 or 1,000 m where noted);
  • utility and linear works with limits such as electrical lines of 130 kV or less, certain water and sewer works up to 1,000 m2 or 1,000 m in length, and septic systems up to 1,000 m2 located more than 30 m from a water body;
  • underground storage tank systems for petroleum with an aggregate capacity up to 5,000 L (30,000 L for some above-ground airport tanks in a separate listing).
• Creates a new Schedule (Schedule 3) listing excluded classes that apply inside national wildlife areas, and updates classes for federal lands administered by the Parks Canada Agency.
• Keeps key limits and exclusions. Projects are not excluded if they would, for example:
  • change a water body’s level or alignment, alter a wetland, harm species listed under the Species at Risk Act, or release harmful substances into water;
  • involve prohibited activities under the Fisheries Act, Canadian Navigable Waters Act, or Migratory Birds Regulations;
  • remove or damage sites of historical, archaeological or architectural significance.
• Clarifies wording and interpretation across schedules and changes some general conditions about work near water and contaminated sites.
• Repeals the previous order and comes into force on the registration date (February 28, 2025).

Who's affected#

• Federal authorities that approve or carry out work on federal lands or outside Canada, including departments, agencies and other Crown bodies such as Parks Canada Agency, Environment and Climate Change Canada, and the Impact Assessment Agency of Canada.
• Businesses, contractors, and public agencies that plan small projects on federal lands or for projects funded or authorized by the federal government.
• People and communities near federal lands, including Indigenous groups and residents, who may see fewer projects posted for public comment because many small projects are now excluded from formal IAA review. Authorities still remain responsible for any treaty or consultation duties.

Why it matters#

• It will speed up and simplify routine, low-risk projects (like small buildings, repairs, utility upgrades, or minor road and trail work) by reducing the need for formal environmental-effect determinations. That can save time and administrative work for governments and project proponents.
• It can free federal resources to focus on larger or higher-risk projects that need fuller assessment and public engagement.
• At the same time, some Indigenous groups, environmental organizations, and members of the public raised concerns about fewer opportunities for input and the risk of cumulative effects when many small projects happen in the same place. The Order keeps specific protections for water, species at risk, migratory birds, and heritage sites, and authorities are still required to meet consultation and treaty obligations where applicable.