Canada Gazette, Part I, Volume 159, Number 8: Regulations Amending the Immigration and Refugee Protection Regulations (Provincial Nominee Program)

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February 22, 2025

Statutory authority
Immigration and Refugee Protection Act

Sponsoring department
Department of Citizenship and Immigration

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

General Comment

Issues

Immigration is a shared federal and provincial/territorial (PT) responsibility. Duplication has been identified in the administration of the Provincial Nominee Program (PNP), particularly in the assessment and processing of PNP applications. Amendments to the Immigration and Refugee Protection Regulations (IRPR) are needed to remove duplication between federal and PT roles and create efficiencies in processing for Immigration, Refugees, and Citizenship Canada (IRCC) and the Canada Border Services Agency (CBSA).

Background

All provinces and territories, except Quebec and Nunavut, have established PNPs to address regional and local labour market and economic development needs. Since its creation in 1998, the PNP has been successful in meeting its primary objectives of distributing economic immigrants across Canada and supporting regional economic development. The number of economic immigrants settling outside of major immigrant-receiving centres, such as Ontario, Quebec, and British Columbia, increased from 11% in 1998 to 31% in 2022.

Roles and responsibilities for the PNP are outlined in the IRPR, and responsibility for assessing candidates under the PNP is shared between PTs and IRCC in a two-step program.

In step one, PTs assess candidates against PNP stream criteria, typically a combination of education, language, work experience, and other relevant factors, and nominate eligible candidates to IRCC for permanent residence. While there is a degree of variability in the criteria, all PNP streams are broadly designed to ensure that candidates are assessed based on their ability to economically establish in Canada and intent to reside in the nominating PT. These elements serve as criteria for membership in the Provincial Nominee Class, as established in the IRPR, and as outlined in bilateral immigration agreements between PTs and IRCC.

In step two, IRCC processes PNP permanent residence applications, with IRCC retaining final selection authority. IRCC ensures that candidates are members of the class, and are eligible for the PNP, and candidates are named in a valid nomination certificate. This includes an assessment of the candidate’s intent to reside in the nominating PT, and that they meet federal screening requirements, notably admissibility. IRCC may also choose to substitute the nominating PT’s evaluation of ability to become economically established. IRCC’s assessment of membership in the class (including ability to become economically established and intent to reside) can be considered duplicative of the PT’s work, since candidates who have received a nomination have already been assessed against these criteria. This process has resulted in some eligibility factors being assessed by both the province or territory and IRCC.

The Minister of Citizenship and Immigration committed to addressing duplicative federal assessments in PNP application processing at the July 2022 Forum of Ministers Responsible for Immigration meeting.

Objective

The proposed regulatory change would be a concrete step in demonstrating the federal commitment to work towards greater complementarity in federal, provincial, and territorial (FPT) roles in immigration.

This proposal is also expected to bring efficiencies in how IRCC and CBSA process PNP applications and the removal of duplication in FPT roles.

Description

The proposal would replace the criteria for membership in the Provincial Nominee Class, including the authority of an officer to replace an assessment by the province or territory, with criteria based on being named in a nomination certificate that is

The proposal would also establish a new provision giving the nominating province or territory sole responsibility to assess the person’s ability to establish in Canada and intent to reside in the nominating province or territory.

Regulatory development

Consultation

IRCC consulted with PTs through multiple policy and program working groups and through a ministerial letter. All PTs have expressed support for this regulatory change.

CBSA has been consulted and are supportive of the proposed regulatory amendments.

Modern treaty obligations and Indigenous engagement and consultation

This proposal is not anticipated to have impacts on Indigenous peoples.

Instrument choice

As the roles and responsibilities for assessment of provincial nominees are laid out in the IRPR, a regulatory amendment is the only option.

Regulatory analysis

Benefits and costs

An important first step in developing a cost-benefit methodology is establishing a baseline scenario against which options may be measured. For this analysis, the baseline scenario is one wherein responsibility for assessing candidates under the PNP would continue to be shared between PTs and IRCC. The baseline scenario is then compared with the regulatory scenario, in which PTs will be solely responsible for the assessment of the two criteria that constitute eligibility in the Provincial Nominee Class. This would not represent increased effort for PTs, but rather simply removes duplication of efforts by IRCC.

The costs and benefits of the regulatory amendments are monetized for 10 periods of 12 months (2024 to 2033) and are expressed in 2023 dollars.

The proposed amendments will result in both transition and ongoing costs to IRCC to implement and monitor the changes and are estimated at $345,092 present value (PV) over 10 periods. Total savings to IRCC resulting from processing efficiencies are estimated at $681,767 PV over 10 periods, and consequently the net benefit of the proposal is $336,674 PV. The proposal will also present additional qualitative benefits in the form of processing efficiencies for CBSA, as well as time savings for applicants. PTs are not expected to incur costs as a result of the regulatory amendments.

Costs to IRCC

The proposed amendments will result in both transition and ongoing costs to IRCC and are estimated at $345,092 PV over 10 periods.

Transition costs are estimated at $177,721 and consist of the following: development of program delivery instructions material to inform officers of changes and adjusting processes; minor IT system adjustments to remove IRCC’s assessment step; assessing and making changes to forms and documentation for permanent residence applications for PNP candidates; informing PTs of regulatory changes and responding to their questions; and reviewing all bilateral immigration agreements with PTs to identify and update as necessary.

Total ongoing costs are estimated at $167,371 PV over 10 periods and consist of integrity assurance exercises to ensure risks to the PNP remain low in the absence of these assessment activities by IRCC.

Benefits
Cost savings to IRCC

Streamlining the federal assessment of membership in the Provincial Nominee Class will result in cost savings to IRCC. These cost savings include reduced officer effort at the time of reviewing PNP permanent residence applications, including reduced outreach and communication with PTs to verify information and details of applications concerning membership in the Provincial Nominee Class, reduced analysis of eligibility evidence, and reduced drafting and reviewing responses to procedural fairness letters for applications which present significant concerns. With approximately 47 800 PNP permanent residence applications processed by IRCC annually, and an estimated average reduction in officer effort of three minutes per application, the cost savings to the IRCC are estimated at $681,767 PV over 10 periods.

Benefits to CBSA

The proposed regulatory changes represent benefits to the CBSA. Currently, both CBSA and PTs review applicants’ intent to reside in the PT that nominated them. Since the amendments will render PTs solely responsible for assessing intent to reside, CBSA will no longer duplicate this assessment, resulting in time savings for CBSA.

Benefits to applicants

The regulatory amendments will also result in some minor time savings to applicants. Under the current system, if an applicant is being considered for refusal by IRCC for failing to meet program criteria, they (and the nominating province) will be sent a procedural fairness letter, which will allow them to submit additional evidence/information to IRCC demonstrating how they meet the program’s criteria. Following the implementation of the regulatory amendments, it will no longer be necessary for applicants to “revalidate” themselves to IRCC, because IRCC would no longer be responsible for assessing membership in the class. Removing this duplication of efforts will result in time savings for those applicants.

Benefits to FPT relations

The amendments are expected to improve FPT relations and provide greater complementarity in FPT roles in immigration, which is increasingly important given the complexity and prevalence of overlap more broadly within federal, provincial, and territorial (FPT) immigration programs. More generally, this amendment is expected to improve FPT relations in immigration given that some PTs have requested this change.

Small business lens

Analysis under the small business lens concluded that the proposed amendments would not impact businesses.

One-for-one rule

The one-for-one rule does not apply as there is no incremental change in administrative burden on business.

Regulatory cooperation and alignment

This proposal is not related to a work plan or commitment under a formal regulatory cooperation forum.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA Directive), a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

No gender-based analysis plus (GBA+) impacts have been identified for this proposal. As this proposal would result in IRCC removing its assessment of certain factors for all PNP permanent residence applications, there are no differential impacts expected on applications from diverse populations.

Implementation, compliance and enforcement, and service standards

Implementation

PTs would continue to assess candidates’ “ability to economically establish” and “intent to reside” as part of their nomination assessment, while IRCC’s assessment would be streamlined to remove the assessment of eligibility and focus solely on assessing admissibility.

The regulatory changes would come into force on the day on which they are registered.

IRCC would work with PTs to ensure that bilateral immigration agreements are consistent with the proposed amendments prior to coming into force. The new parameters of the nomination certificate will codify the requirement for PTs to receive IRCC concurrence on the design of PNP selection criteria. By convention, this practice is already in place for all 11 PTs that participate in the PNP; however, it is not yet codified in all 11 immigration agreements. Instead, the requirement is only included in the 6 most recently negotiated agreements, while the older agreements are silent on this topic, with the understanding that the requirement would be included in the next iteration of the immigration agreement. Including this requirement in the regulations will create consistency across all PTs and ensure that the PNP continues to be a jointly delivered program.

Contact

For public enquiries, please contact

Tooba Housany
Director
Regional Economic Programs and Policy
Permanent Economic Immigration Branch
Immigration, Refugees and Citizenship Canada
365 Laurier Avenue West
Ottawa, Ontario
K1A 1L1
Email: IRCC.PNPIRPR-PCPRIPR.IRCC@cic.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council proposes to make the annexed Regulations Amending the Immigration and Refugee Protection Regulations (Provincial Nominee Program) under subsections 5(1) and 14(2)footnote a of the Immigration and Refugee Protection Act footnote b.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Tooba Housany, Director, Regional Economic Programs and Policy, Permanent Economic Immigration Branch, Immigration, Refugees and Citizenship Canada, 365 Laurier Avenue West, Ottawa, Ontario K1A 1L1 (email: IRCC.PNPIRPR-PCPRIPR.IRCC@cic.gc.ca).

Ottawa, February 13, 2025

Wendy Nixon
Assistant Clerk of the Privy Council

Regulations Amending the Immigration and Refugee Protection Regulations (Provincial Nominee Program)

Amendments

1 (1) Subsections 87(2) to (4) of the Immigration and Refugee Protection Regulations footnote 1 are replaced by the following:

Member of class

(2) Subject to subsection (5), a foreign national is a member of the provincial nominee class if they are named in a nomination certificate that is

Evaluation by province

(3) The government of a province that issues the nomination certificate has the sole responsibility to evaluate, according to the provincial selection criteria that have been approved in writing by the Minister, both the foreign national’s ability to become economically established in Canada and their intention to reside in that province.

(2) The Regulations are amended by replacing “paragraph 2(a)” with “subsection (2)” in the following provisions:

Coming into Force

2 These Regulations come into force on the day on which they are registered.

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