On April 17, 2025, the Government of Ontario introduced Bill 5: Protect Ontario by Unleashing Our Economy Act, 2025 (“Bill 5”), a wide-reaching omnibus bill that proposes to amend, repeal, or replace nine provincial statutes, while introducing two new ones. It was ordered for second reading on the same day it was introduced, and on May 6, 2025, it was ordered to Standing Committee. The Standing Committee will hold public hearings to consider the bill on May 22 and May 26, 2025.
The Provincial Government has positioned Bill 5 as a key part of Ontario’s economic strategy, designed to accelerate infrastructure delivery, strengthen critical mineral supply chains, and reduce regulatory barriers across energy, mining, and planning processes. The bill signals a broader shift away from mandatory protections and rigid frameworks, toward a more flexible, ministerial-discretion model of governance.
Overviews of the proposed changes are detailed on the Environmental Registry of Ontario (“ERO”) website and are available for comment until May 17, 2025. The ERO postings can be found at the following links:
- ERO-025-0391: Special Economic Zones Act, 2025
- ERO-025-0380: Proposing interim changes to the Endangered Species Act, 2007, and a proposal for the Species Conservation Act, 2025
- ERO-025-0396: Addressing Changes to the Eagle’s Nest Mine Project
- ERO-025-0389: Removing Environmental Assessment Requirements for the York 1 Waste Disposal Site Project
- ERO-025-0416: Protect Ontario by Unleashing Our Economy Act, 2025
- ERO-025-0418: Proposed Amendments to the Ontario Heritage Act
- ERO-025-0409: Proposed amendments to the Mining Act 1990, Electricity Act 1998, and Ontario Energy Board Act 1998, to protect Ontario’s Economy and Build a More Prosperous Ontario
This blog provides more details on the key changes proposed by Bill 5, organized below by topic. The Davies Howe LLP team will continue to monitor the bill as it accelerates through the legislative process and update the summaries accordingly.
Special Economic Zones
Starting with what could be one of the most significant and controversial changes proposed by Bill 5, Schedule 9 proposes to introduce an entirely new Act: the Special Economic Zones Act, 2025. Under this new Act, the Lieutenant Governor in Council (the “Lieutenant Governor”) may, by regulation, designate specific areas as Special Economic Zones (“SEZs”). According to the ERO posting, these zones will constitute geographic areas that include one or more projects of critical or strategic importance, where vetted projects within the SEZ will benefit from faster permitting, simplified requirements, and priority access to one-window services.
To facilitate the approval process within these SEZs, the Special Economic Zones Act, 2025 proposes to authorize the Minister of Economic Development, Job Creation, and Trade to make regulations that designate specific persons as “trusted proponents” and specific projects as “designated projects,” where to-be-prescribed criteria are met. Then, the Lieutenant Governor may, also by regulation, exempt a “trusted proponent” or a “designated project” from requirements under provisions of any Act, regulation, or other instrument under an Act, including municipal by-laws, subject to conditions specified in that regulation. Projects and decisions made under the Special Economic Zones Act, 2025 are also proposed to be protected by legal immunity clauses, limiting the ability of third parties to challenge them in court.
Given that the Special Economic Zones Act, 2025 would allow the Province to exempt projects and/or proponents from provisions of any provincial legislation, municipal by-law or other specified requirements, the significance of this new legislation could be substantial; however, it will largely depend on the number of SEZs the Province designates, how quickly it designates each SEZ, and what types of projects it designates within the proposed SEZs.
Species-at-Risk
Schedules 2 and 10 collectively propose significant changes to the species-at-risk approval process.
While Schedule 10 proposes to introduce a new Species Conservation Act, 2025 (the “SCA”), Schedule 2 proposes to amend the Endangered Species Act, 2007 (the “ESA”) as an interim measure until the SCA is ordered into force by the Lieutenant Governor, at which point the ESA is proposed to be repealed, along with all the regulations created under it.
The proposed interim amendments to the ESA include:
- Amending the “purpose” of the Act to consider social and economic considerations, including the need for growth in Ontario;
- Narrowing the definition of “habitat”;
- Removing the term “harass” from the provisions prohibiting harm to listed species;
- Maintaining the role of the Committee on the Status of Species at Risk in Ontario (“COSSARO”) in relation to classifying species but removing the “automatic listing” of species classified by COSSARO. Instead, the Lieutenant Governor will determine what species classified by COSSARO are to be listed;
- Removing the requirement for recovery strategies. Recovery strategies are currently required to be prepared under the ESA to include, among other things, a description of the threats to the species and recommendations to the Minister of the Environment, Conservation and Parks (“Minister of the Environment”) on objectives and approaches for the protection and recovery of the species;
- Removing the requirement for management plans for special concern species. Under the current ESA, the Minister of the Environment is required to have a management plan prepared for each species listed, which sets out advice and recommendations to the Minister of the Environment on approaches for the management of the species in Ontario; and
- Updating the compliance and enforcement powers under the Act. Provincial officers would be able to enter and inspect any land without a warrant to determine specified compliance under the ESA, and they may make an order requiring a person to take certain actions if the person, in the opinion of the officer, is contravening the ESA. The proposed amendments would also remove the ability of an officer to issue a “stop order”. Instead, the Minister of the Environment will be authorized to issue a “mitigation order” to mitigate any potential adverse effect on the species or its habitat resulting from the prohibited activity.
In addition to carrying forward the proposed amendments to the ESA, once ordered into force, the SCA proposes to create a new “registration-first approach” where projects will no longer require a permit to proceed but may proceed once proponents of the project have registered the project online. This eliminates the step of having the Minister of the Environment review and approve permits. Registered activities will be required to meet requirements to protect species, which are proposed to be prescribed in regulations. Registration would not be required for species protected under federal legislation such as migratory birds and aquatic species in an effort to remove duplication and further expedite projects.
The Province has stated that the new proposed model emphasizes mitigation, conservation agreements, and funding contributions rather than outright restrictions on land use, and that its purpose is to drive species protection and conservation while considering social and economic considerations, including the need for sustainable economic growth in Ontario.
Environmental Assessment Exemptions
Schedule 3 proposes to amend the Environmental Assessment Act by exempting specific projects from environmental impact assessment requirements, including the Eagle’s Nest mine, which is located within the “Ring of Fire”, and the Chatham-Kent waste disposal site. The Province has indicated that the exemptions reflect a targeted approach to environmental assessment reform where government can accelerate priority projects by bypassing traditional assessment pathways.
Schedule 4 proposes to amend the Environmental Protection Act by revoking the Minister of the Environment’s requirement to pay fees for registration of a prescribed instrument on the Environmental Activity and Sector Registry as set out here. The proposed amendments also permit the Minister of the Environment to issue refunds when registrations are revoked; however, it is not required to do so. While procedural in nature, this change aligns with Bill 5’s broader theme of deregulation.
Schedule 8 modifies the Rebuilding Ontario Place Act, 2023 by exempting the Ontario Place redevelopment and any related activities from Part II of the Environmental Bill of Rights, 1993. Part II sets out the minimum levels of public participation that must occur before the Province when it makes decisions on specified kinds of environmentally significant proposals. The result being that proposals for provincial approvals related to the site will no longer be required to give public notice or provide opportunities for public comment or consultation. The Province has stated that this exemption is aimed at allowing the province to proceed quickly with its vision for the site.
Ontario Heritage
Schedule 7 introduces changes to the Ontario Heritage Act (the “OHA”) to update enforcement and compliance with respect to the protection of artifacts and archaeological sites. If approved, the Minister of Citizenship and Multiculturalism (“Minister of Citizenship”) would be granted new powers to:
- Direct that a property be inspected for the purpose of assessing whether any artifacts or archaeological sites are on any land or land under water;
- Make an assessment order to direct that no person shall alter or remove an artifact on a site that may contain an artifact or an archaeological site until it is demonstrated by a licensed archaeologist through fieldwork and a subsequent report to the Minister of Citizenship that there is no further cultural heritage value or interest to the site;
- Direct that artifacts and archaeological collections are to be deposited with public institutions or indigenous communities;
- Authorize investigations under the OHA, where the Minister of Citizenship may appoint an investigator, and the investigator may obtain a search warrant and conduct investigations for the purpose of investigating offences or potential offences committed under the OHA. Currently, investigations are only done under the Provincial Offences Act (“POA”); and
- Similarly, the OHA does not currently set out a limitation period as to when a legal claim can be initiated, and the POA period of six months after the date on which the offence was alleged to have been committed was used. The proposed amendments would set out a two-year limitation period from when the offence first comes to the attention of a provincial offences officer appointed under the POA.
In addition, the proposed amendments would authorize the Lieutenant Governor to exempt a property from a requirement to conduct an archaeological assessment under provisions of any Act or regulation if the project aligns with provincial priorities such as transit, housing, health and long-term care, other infrastructure, or such other priorities as may be prescribed by regulation, subject to requirements in the Funeral Burial and Cremation Services Act, 2002 and related regulations. The Lieutenant Governor’s order may set out conditions for the exemption. The amendments also include the authority to establish additional criteria by regulation that must be met for the property to be eligible for an exemption. These proposed amendments will come into force on a day to be proclaimed by the Lieutenant Governor, presumably to permit time for the government to draft the anticipated regulation(s).
The proposed amendments would also permit the Minister of Citizenship to define “archaeological collection” and “public institution” in regulations.
Mining, Electricity and Energy
Schedule 1 of Bill 5 proposes to amend the Electricity Act, 1998 to allow the Minister of Energy and Mines to direct the Independent Electricity System Operator (“IESO”) to limit or prohibit electricity procurement from specific countries or regions. Bill 5 also proposes to restrict the IESO from entering into a procurement contract in specific circumstances to be prescribed by regulation. Similarly, if passed, Bill 5 would restrict Ontario Power Generation Inc. from procuring a good or service unless it meets the conditions prescribed by future regulations respecting the country, region, or territory of origin. The Province has indicated that these directives are to assist in prioritizing Ontario-based suppliers.
Schedule 6 proposes similar procurement restrictions to the Ontario Energy Board Act, 1998 by enabling directives to limit or prohibit gas distribution from specific countries or regions based on origin.
Schedule 5 would significantly expand the powers of the Minister of Energy and Mines under the Mining Act in an effort to remove regulatory barriers. If approved, it would amend the purpose of the Act to emphasize that the development of mineral resources must be consistent with protecting Ontario’s economic interests. It would also permit the Minister of Energy and Mines to make certain orders if they are desirable for the protection of the strategic national mineral supply chain, including: an order to suspend, restrict, or prohibit a person’s mining lands administration system account; an order prohibiting a person from obtaining a prospector’s licence; and an order terminating a prospector’s licence. The Minister of Energy and Mines may also deny the issuance of a lease if they consider said denial desirable for the protection of the strategic national mineral supply chain. Finally, Bill 5 proposes to create a new “mine authorization and permitting delivery team” for any project designated by the Minister of Energy and Mines. If the proponent provides the required information to this “delivery team”, the team will carry the approval through the process with the stated goal to streamline approvals for high-priority mineral projects by reducing review timelines by up to 50%. These amendments would also exclude these projects from environmental impact assessments under the Environmental Assessment Act.
Conclusion
If enacted, Bill 5 would represent a major transformation in Ontario’s approach to environmental approvals, species protection, heritage review, and municipal planning authority. The shift toward Cabinet discretion and project-based exemptions reflects a clear effort to reduce timelines for provincial priorities, particularly in the mining, energy, and housing sectors. Municipalities may find themselves with limited authority in designated SEZs or over projects exempted under these reforms. Meanwhile, environmental stakeholders and Indigenous communities have raised concerns about the loss of procedural rights, weakened oversight mechanisms, and reduced opportunities for consultation.
As always, the Davies Howe LLP is here to keep you updated as Bill 5 moves through the legislative process. If you have any questions, please do not hesitate to reach out to our land use planning team.
