Bill 98, the Building Homes and Improving Transportation Infrastructure Act, 2026, is currently at Second Reading, has been debated and ordered referred to the Standing Committee on Heritage, Infrastructure and Cultural Policy.

The Acts it proposes to amend are: the Building Code Act, 1992; City of Toronto Act, 2006; Metrolinx Act, 2006; Municipal Act, 2001; Planning Act; Safe Drinking Water Act, 2002; Development Charges Act, 1997; Water and Wastewater Public Corporations Act, 2025; Cutting Red Tape to Build More Homes Act, 2024, S.O. 2024, 16; Modernizing Ontario’s Municipal Legislation Act, 2017 and the introduction of the Fare Alignment and Seamless Transit Act, 2026.

While framed as a measure to reduce barriers and improve coordination, the proposed changes carry significant implications for municipal authority and decision‑making.

The following highlights the key amendments and how Bill 98 may reshape local roles in development regulation and infrastructure oversight.

Municipal Authority for Environmental Standards

The Building Code Act, 1992, the Planning Act, and the City of Toronto Act, 2006 is to be amended to clarify that municipal by-laws concerning the construction or demolition of buildings include construction standards for the protection or conservation of the environment.

In essence, municipalities may pursue environmental objectives only where those objectives are directly tied to construction standards, rather than through standalone environmental or sustainability regulations. As a result, municipal environmental regulation is now narrower and can only operate within the construction and development approval frameworks that remain subject to provincial limits and override.

Increased Provincial Oversight on Toronto’s Development Conditions

The proposed changes to the City of Toronto Act, 2006 would limit the City’s discretion over development standards. The amendments would remove references to “sustainable design,” which would restrict the City’s ability to impose development requirements for public spaces and infrastructure unless they are necessary for the matters of health, safety, accessibility, or the protection of adjoining lands. In addition, the City could no longer require electric vehicle charging infrastructure for off‑street parking or impose development conditions related to prescribed matters, as defined by future provincial regulation, thus leading to a significant increase in provincial oversight on development.

Relief from Development Charges

The proposed amendments to the Development Charges Act, 1997 would introduce a new exemption for developments undertaken by qualifying non‑profit corporations for use as retirement homes, including future instalments that would otherwise become payable.

An Integrated Transit System

Bill 98 proposes to enact the new Fare Alignment and Seamless Transit Act, 2026, which would expand provincial control over certain aspects of municipal transit systems. The proposed Act provides that the Minister of Transportation may set fares, discounts, transfer rules, unify fare payment system and designate priority transit routes crossing municipal boundaries.

Municipal transit systems would need to provide information and data to the Province and comply with the reporting requirements. Certain specialized transit systems would need to participate in a unified trip‑booking system and provide transportation for persons with disabilities to a prescribed distance outside their primary service area.

Municipal Review of Metrolinx Projects

The proposed amendments to the Metrolinx Act, 2006 establish a new process for municipalities to review proposals for construction or demolition of a building associated with a provincial transit project. The Chief Building Official is required to review the proposal and prepare a report addressing some key matters such as possible Building Code Act, 1992 violations, redesign requirement by an architect, a professional engineer, or both, and whether the individuals who prepared plans, documents, or opinions hold the required qualifications and insurance.

Amendments to the Municipal Act, 2001

Schedule 6 of Bill 98 proposes changes to governance of non‑municipal water and sewage public utilities. Municipal consent would continue to be required to construct, maintain, or operate such utilities; however, the Lieutenant Governor in Council would prescribe criteria or conditions by regulation. Where those regulations are in force and their requirements are met, municipalities would be required to grant consent. In those circumstances, municipalities could only impose prescribed financial, operational, or other conditions and may require agreements that can be registered on title.

Planning Act Changes

Bill 98 proposes significant reforms to the Planning Act that affect how land use planning is structured, implemented, and regulated across Ontario.

A phased transition is proposed for the County of Simcoe to become an upper‑tier municipality without planning responsibilities. Removal of planning responsibilities for the County of Simcoe was first proposed in Bill 23, the More Homes Built Faster Act, 2022 and has been sitting in limbo waiting for the province to implement that proposal. It appears that planning responsibilities will first be transferred from the County of Simcoe to the lower tier in the Towns of Bradford West Gwillimbury, Innisfil and New Tecumseth.

The amendments to the Planning Act would also replace the existing official plan framework with a mandatory, standardized format that prescribes required chapters, sections, schedules, goals and require the use of land use designations. The transition is expected to be completed in two stages:  January 1, 2028 for 29 listed municipalities[i] and January 1, 2029 for all others.

In addition, official plans would no longer be required to include policies addressing greenhouse gas emissions reduction or climate change adaptation. It would also limit municipal regulatory authority by prohibiting zoning and site plan requirements for electric vehicle supply equipment, restricting minimum lot area, frontage, and depth standards for certain urban residential lands, and removing “sustainable design” as a basis for site plan control.

Other changes that impact parklands, easements, timely decision making on proposed conveyances, and establishing rules for conveyed lands are also proposed.

It is essential for municipalities to closely monitor the implementation of Schedule 7, particularly as several of its provisions depend on future regulations and crucial transition timelines.

Municipalities in Simcoe County should also track how and when planning responsibilities shift between upper‑ and lower‑tier governments. Early review of existing planning documents and development approval practices will be essential to ensure compliance once the amendments come into force.

Updates to Drinking Water Regulation

The Safe Drinking Water Act, 2002 would be amended to include any drinking water system designated as water and wastewater public corporations within the definition of municipal drinking water systems. The amendments also introduce a deemed consent mechanism, which simplifies the process for written consent requirements.

Governance of Water and Wastewater Public Corporations

The Water and Wastewater Public Corporations Act, 2025 would be amended to change the governance framework for water and wastewater public corporations. The amendments would restrict the ownership and transfer of shares so that shares may be issued or transferred only to a municipality, the Province of Ontario, the Government of Canada, or an agent of any of them. It would also limit the transfer of assets used to provide water or sewage services by prohibiting such transfers unless the corporation’s board of directors has declared, by resolution, that the asset is no longer required for those services. In addition, the amendments would introduce further requirements governing transfers carried out through transfer by‑laws, including provisions addressing the legal effect of transfers, contractual continuity, and employee protections.

If you have questions about how the proposed legislation may affect you, please contact a member of our municipal law group.

[i] Ajax, Barrie, Brampton, Brantford, Burlington, Caledon, Cambridge, Clarington, Guelph, Hamilton, Kingston, Kitchener, London, Markham, Milton, Mississauga, Newmarket, Niagara Falls, Oakville, Oshawa, Ottawa, Pickering, Richmond, St. Catherines, Toronto, Vaughn, Waterloo, Whitby, and Windsor.