On July 14, 1995, the Governor of Guam filed a petition (``Petition'') with the Administrator seeking a waiver of certain Clean Air Act (``CAA'') requirements which apply to Guam Power Authority (``GPA''). The Petition was filed under Section 325(a) of the CAA. The waiver will help to ease a severe energy emergency on Guam. Based upon the information in the Petition and supplementary information from GPA and the Guam Environmental Protection Agency (``GEPA''), EPA is granting the waiver requested. EPA finds that there is good cause for a direct final rulemaking and that notice and public procedures are impracticable, unnecessary, and contrary to the public interest. The waiver allows, with certain conditions, one baseload diesel electric generating facility to operate at the Cabras Power Plant prior to the receipt of a final Prevention of Significant Deterioration (``PSD'') permit by GPA. The waiver also allows the construction, but not operation, of a second baseload diesel unit at the Cabras Power Plant prior to GPA's receipt of a final PSD permit.