Project finance firm Norton Rose Fulbright says that the Executive Order raises at least four critical questions. 1. Who are the foreign adversaries? The firm suggests the order seems directed at China. 2. Which power projects are affected? The order applies only to equipment used in the “bulk power system,” defined as not only “facilities and control systems necessary for operating” the transmission grid, but also “generation facilities that are necessary for system reliability.” 3. How will the ban work in practice? The transaction must either pose an “undue risk” of “sabotage or subversion of” the bulk power system or of “catastrophic effects” to critical US infrastructure or the US economy or pose simply an “unacceptable risk” to national security. 4. What is the effective date of the ban? Norton Rose Fulbright says the order in one place applies “where the transaction is initiated after the effective date of this order.” It says in another place that the prohibitions in the order apply “notwithstanding any contract entered into or any license or permit granted prior to the date of this order.”
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