Energy
The US Department of Energy (DOE) is an active participant in the CFIUS review process and separately conducts its own licensing reviews in its capacity regulating the interstate transmission of electricity, natural gas and oil through the Federal Energy Regulatory Commission (FERC). Through the National Nuclear Security Administration (NNSA), it also manages all activities relating to the US nuclear weapons stockpile, coordinates certain domestic and international nonproliferation activities and provides nuclear propulsion plants for the United States Navy. The US Nuclear Regulatory Commission (NRC) is an independent agency that regulates commercial nuclear power plants and other uses of nuclear materials, such as in nuclear medicine, through licensing, inspection and enforcement of its requirements. DOE and NRC also serve as Cognizant Security Agencies under the NISP and administer certain industrial security programs to protect specific energy-related materials, assets and data.
How the National Security Regimes Interact
FERC, NNSA and NRC licensing and authorization processes are separate and distinct from a CFIUS review, and often conducted in parallel. It is generally advisable to commence the DOE process before formally filing with CFIUS.
What You Need To Know
Any transactions involving any FERC, NNSA or NRC licenses, authorizations, facilities and/or activities can expect heightened scrutiny and the possibility of separate restrictions on foreign investment.
Parties should factor the timing of any licensing reviews into the anticipated closing timelines of any transaction.