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Sec. 302.—This section would forgive the interest on loans made to
Guamto assist in the rehabilitation of the island due to damage caused
by World War IL and Typhoon Keren and credit the interest paid
against the outstanding principal,
In 1963, a Ioan of $41.5 million was made to Guam of which Guam
has repaid $3.9 million as well as $18.1 millionin interest. Especially

in light of recent disaster relief efforts, such as the rehabilitation authorization for Typhoon Pumela, which have been in the form of

grants, the Committee believes that interest should not be required.

sec. 303.—This section of the House bill would extend for 30 years
the loan guarantee provision for the Guam Power Authority and pro-

vide a complicated formula whereby the Seeratary of the Interior

deducted from the section oO revenues desiring rather to pay its obli-

gations itself. Guam Power Authority also requests that interest be
set by the Federal Himancing Back Bank at current market rates rather
than having the advantage of current Treasury rates. The objective

of the Guam Power Authority is to enter into the private markets as

soon as possible andaccordingly it wishes to establish a track record of
meeting current obligations at current market rates. The Admuinistration supports the position of the Guam PowerAuthority, as does Congressman WonPat who urged the Committee to modify the provision
accordingly.
The conunittee agrees with the position of the Guam Power Authority ancl has modified this provision accordingly.
See. 304.—This section would exempt the Guam Power Authority

from compliance with Section 111 (New Source Performance Stand-

ards) and Section 123 (prohibition in the use of certain control techniques) of the Clean Air Act.
Generally speaking, the Clean Air Act imposes two sets of requirements on emitting sources. All sources built after the promulgation of
certain regulations adopted pursuant to Section 111 of the Clean Air
Act (“the Act”), as amended in 1970, 42 U.S.C. $ 7411, are subject to
emission limitations known as New Source Performance Standards
(“NSPS”). Additionally, every State must adopt a State Implementation Plan (“SIP”) under Section 110 of the Act for the purpose of

meeting National Ambient Air Quality Standards (“NAAQS”). Ev-

ery SEP must impose on local sources sufficient controls to assure the

attainment and maintenance of NAAQS. All emission limitations,

whether imposed by NSPS or by an applicable STP, must be met
through the use of continuous emission control techniques. Clean Air
Act, Sections 111 (NSPS) and 128 (SIP), 42 U.S.C. §§ 7411 and
7423.

GPA. operates two 66-megawatt fossil fuel fired steamelectric generating facilities on Cabras Island at Piti, Guam (“Cabras 1 and 2”).
These facilities were built after the promulgation of New Performance Standards for stenin electric generating faeilities. The New
Source Performance Standards impose a limitation on the amount of
sulfur dioxide that Cabras Land 8 can emit. Additionally, GPA. must
meet these standards by means of continuous emission control, Both

Sr eTEkwon

_ would deduct principal payments fromthe section 30 revenues covered
over inte the Guam‘Treasury while the Guam Power Authority would
pry principal and interest to the Government of Guam. The Guam
Power Authority opposes a 30-year provision and requests only a 10
year extension. Guam Power Authority also opposes having payments

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