New CFIUS Law: Key Issues Affecting the Energy Sector

Description

The FIRRMA, signed into law in Aug. 2018, expands the scope of foreign investment transactions that the Committee on CFIUS may review and imposes mandatory reporting requirements. Under FIRRMA, a wide range of foreign investments affecting the U.S. energy industry will be subject to federal scrutiny.

The new types of covered transactions are likely to impact the energy sector. Under the new law, the CFIUS is permitted to review noncontrolling investments in U.S. businesses involving critical infrastructure, which will affect domestic energy infrastructure investment. Other changes under the new law include review of purchases, leases, concession of U.S. real estate, and jurisdiction when there is a change in a foreign person’s rights if it could lead to foreign control or a noncontrolling investment.

Counsel to energy companies and investors must understand the CFIUS risk involved and be prepared to navigate through the CFIUS reforms. While one investment in the energy sector may not appear to impact national security, CFIUS could block or apply mitigation measures if overall foreign ownership would present a national security concern.

Listen as our authoritative panel examines the new CFIUS reforms and the implications for the energy industry. The panel will discuss new CFIUS authority under FIRRMA. The panel will also address changes related to critical infrastructure, jurisdiction over the change in a foreign person’s rights concerning a U.S. business, and other new types of covered transactions.