This provision was carried over from the Canadian Environmental Assessment Act, 2012. It is an extraordinary authority, an authority that hadn't been used frequently under the previous legislation. The authority requires the minister to assess whether there is potential for significant environmental impacts in areas of federal jurisdiction or significant areas of public concern, so those tests have to be met. If they are met, then the minister may designate a project as requiring a federal assessment. It's not a mandatory requirement that he reach that conclusion.
On February 25th, 2020. See this statement in context.