Ontario ERO Proposal 026-0415 – What it could mean for Construction & Development

The Ontario government has now opened its proposed Environmental Assessment Act Amendments to improve the comprehensive environmental assessment process for public comment until May 20th. The ERO proposal (026-0415) is part of the government’s broader package of planning and development reforms tied to faster housing and infrastructure delivery.

If enacted, these changes aim to address some of the most difficult problems currently faced by construction and development firms, including:

• Speeding up approvals and reducing entitlement risk;
• Lowering carrying costs for developers;
• Improving predictability across municipalities; and,
• Helping contractors plan labour/equipment pipelines with more certainty

These proposed planning reforms could deliver several meaningful benefits to the development sector. Faster approvals would help reduce carrying costs such as interest, taxes, and consultant fees, while greater provincial consistency would lessen the need for developers to navigate different rules in every municipality. By reducing delays and administrative friction, the changes could also increase the number of projects that proceed and lower soft costs tied to redesigns, repeated submissions, and financing delays.

Faster approvals alone do not solve infrastructure constraints such as limited water, wastewater, and roads, all of which can still delay projects. Nevertheless, the overall impact is positive, as faster development approvals means more shovels-in-the-ground. This will help with workforce retention and improve company medium-term planning. If ultimately balanced with a more consistent municipal infrastructure funding, these reforms could unlock significant private and public building activity.

If you have any questions, please contact Patrick McManus (905-629-7766 or patrick.mcmanus@oswca.org).