In general, the State may elect whether or not Project Co proceeds with implementing a State Initiated Modification. However, the State must direct that Project Co proceeds with implementing a Modification if:
• a State Approval Event occurs;
• a Compensable Change in Mandatory Requirements occurs and Project Co would be in breach of Law if it did not comply with such change;
• loss or damage to the Project Assets occurs and the State directs Project Co to repair or rebuild the Project Assets, but only where:
- the loss or damage to the Project Assets was caused by a Day 1 Uninsurable Risk or an Uninsurable Risk; or
- Project Co is unable to recover insurance proceeds under an Insurance to repair or rebuild the Project Assets as a result of a State Insurance Breach;
• loss or damage to the Project Assets occurs, the State does not direct Project Co to repair or rebuild the Project Assets and omits that part of the Project Assets from the Project; or
• to the extent the State directs Project Co to Remediate the Contamination or the Contamination is the subject of a Contamination Notice and such Remediation is not otherwise required under the Remediation obligations set out in the PV Standard Project Deed.