Welcome to Economic Insights, your twice-weekly deep dive into the major projects and policy shifts shaping the Canadian economy.

Stories we are following:

– Bill C-39, the Building Canada Strong Act, is headed to a special committee with Conservatives’ backing.

Bill C-39, the Building Canada Strong Act, is heading to special committee for further study, after a second-reading vote Thursday which included backing from the Conservatives, who all stood up to vote in favour. Those who were against included the Bloc, the NDP, and the Green Party. 

Speaking to reporters before Question Period, Conservative Leader Pierre Poilievre said his caucus “unanimously agrees” C-39 is a “weak, watered down, long-delayed bill that will do little on its own,” and intends to put forward amendments at committee.

He did detail what those amendments would be exactly, but said they would protect workers.

We have more on that here.

– Feds to roll out $2B heat-pump rebate to help up to 820,000 households make the switch.

The federal government is launching a new heat-pump rebate program worth $2 billion over eight years to encourage households to make the switch to more efficient energy systems. 

Ottawa estimates up to 820,000 households across the country could benefit from the heat-pump rebate program, set to launch in early 2027. Environment and Climate Change Canada (ECCC) is also looking at how the rebate could apply retroactively as early as this fall. 

Under the program, the federal government would contribute $2,000 toward a new heat pump, which is estimated to cost about $15,000. Households with incomes below the median, as defined by Statistics Canada, could receive up to $10,000. 

We have those details.

– Mining industry sees signs Ottawa retreating from exploration tax promise.

Mining industry representatives worry Ottawa is backing away from a 2025 Liberal campaign promise to let flow-through funds cover the engineering, economic and feasibility studies required before a mine can be built.

Backed by companies, provinces and First Nations, the Association for Mineral Exploration has spent the last few months pressing Ottawa to widen what qualifies for Canadian exploration expense claims. 

Its CEO, Todd Stone, met with federal officials in Ottawa last week as part of that push and came away cautiously optimistic the change could be in the next budget. But since then, the association says it has seen signs the federal government has little appetite for the change. 

Read our breakdown.

By the numbers:

$10 billion: The opportunity cost in forgone revenue for the federal government should it let flow-through funds cover the engineering, economic and feasibility studies in the next budget, according to Finance Canada numbers. EY puts that number at $6.6 billion. 

11: The number of MPs who will sit on the special legislative committee studying C-39, including six Liberal MPs — Parm Bains, Caroline Desrochers, Emma Harrison, Mike Kelloway, Tim Louis and Danielle Martin — along with for MPs from the Conservative caucus — Dan Albas, Jacques Gourde, Philip Lawrence and Branden Leslie — and lone Bloc Québécois representative Gabriel Ste-Marie.

$2000: How much households would get under the new heat pump rebate, a switch that costs about $15,000 to make. Those who have lower income can receive up to $10,000.

Major projects watch:

– On Thursday, Cold Lake First Nations filed in Federal Court for a judicial review of Ottawa’s decision to designate the Pacific Link pipeline a project in the national interest. The First Nation accuses the government of failing to adequately consult with them on the project.

– Over in Australia, the opposition is proposing to bring an extra 45,000 temporary skilled workers for major projects, including for the gas fields at Beetaloo. POLITICO has more.

– The company behind a major LNG export terminal on British Columbia’s North Coast has been handed a $50,000 administrative penalty related to underwater noise while building a tug terminal three years ago. The tug terminal was a part of Phase 1 of LNG Canada’s natural gas liquefaction and export terminal in Kitimat, which began operations last year. CBC has the story.

– Staying with LNG Canada, Prime Minister Mark Carney says it’ll be up to the company to decide where to source the steel from. This comes after Conservatives have pushed for the steel to be produced in Canada, following media reports the company would be using Chinese steel.

Headlines: