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SEC. 205. PURPA CONTRACTS.

(a) NONPAYMENT FOR POWER- Within 60 days after the enactment of this subsection, the Commission shall revise the rules under section 210 of the Public Utility Regulatory Policies Act of 1978 to provide that if--

(1) the owner or operator of a qualifying small power production facility, or qualifying cogeneration facility, as defined in the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a-3), has sold electric energy pursuant to a contract under this section to an electric utility, and

(2) such owner or operator has not been paid for such energy within the payment period provided in the contract,

such owner or operator may suspend so much of the contract as requires the power and energy from the facility to be sold to such electric utility. During any such suspension, such owner or operator may sell the electric energy covered by such contract to any other person or any other party designated to receive such power or energy.

(b) TERMINATION- A suspension under this subsection shall terminate on the first day of the contract month after which the utility pays for the electric energy received from the qualifying small power production facility or qualifying cogeneration facility concerned except as

otherwise provided in a judicial resolution of the contract dispute or in a negotiated resolution between the parties.

(c) OTHER SERVICES- During any suspension under this subsection, the electric utility shall provide such transmission, interconnection, and distribution services as may be necessary to deliver electric energy from the qualifying small power production facility, or qualifying cogeneration facility, to the purchaser or to another transmission system from which the purchaser may obtain delivery of the electric energy, subject to the requirements of the Federal Power Act relating to transmission services.

(d) INTERCONNECTION- Nothing in this subsection shall affect the obligation of an electric utility to interconnect with a qualifying small power production facility or qualifying cogeneration facility or to provide electric energy to such facility at rates that meet the requirements of section 210(c) of the Public Utility Regulatory Policies Act of 1978 pursuant to the rules of the Commission. Where a qualifying facility exercises its rights under this section, the electric utility party to the power purchase contract shall maintain interconnection services unimpeded and without interruption.

(e) SUNSET- This section shall cease to apply on October 1, 2003.

TITLE III--FEDERAL ASSISTANCE AVAILABLE UPON A GOVERNOR'S REQUEST

SEC. 301. HYDROELECTRIC POWER LICENSE CONDITIONS.

The Commission shall promulgate a standard article under section 10 of the Federal Power Act (16 U.S.C. 803) in order to permit increased generation at licensed hydroelectric facilities to assist in alleviating any electric supply, generating, or system reliability emergency that has been declared by the Governor of the State in which such facilities are located. Any licensee may include such article in a license issued under Part II of such Act, including any license issued before the enactment of this Act. Such standard article shall provide that, if the Governor submits a request for such action to the licensee, upon notice to the Commission and after consultation with the relevant resource agencies, the licensee may operate with a temporary modification or suspension of any minimum flow requirement or other operational requirement of the license during such emergency. Such temporary modification or suspension shall not continue for more than 2 years.

SEC. 302. FEDERAL HYDROPOWER GENERATION.

(a) BONNEVILLE POWER ADMINISTRATION- During any period (not in excess of 2 years) during which an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State, if the governors of each State within the Pacific Northwest (as defined in section 3(14) of the Pacific Northwest Power Planning and Conservation Act) request the Administrator of the Bonneville Power Administration to authorize hydropower facilities providing electric power to the Administration to maximize electric generation at such facilities, the Administrator may authorize such generation.

(b) BUREAU OF RECLAMATION- During any period (not in excess of 2 years) during which an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State, in order to provide electric power generation, if the Governor of such State so requests, the Secretary of the Interior, acting through the Commissioner of the Bureau of Reclamation, may authorize the maximum electric generation at hydroelectric facilities operated by the Bureau.

(c) WAIVER- Whenever the Administrator of the Bonneville Power Administration or the Commissioner of the Bureau of Reclamation authorizes maximum generation pursuant to this subsection at any facility, such authorization shall waive the application of any restriction or constraint under any Federal law, plan, rule, or order (including any court order issued before the date of the enactment of this Act pursuant to any Federal law) that would otherwise apply to the operation of the facility concerned, including any dam, powerplant, or other facility under the administrative jurisdiction of the Administrator or Commissioner, wherever located.

(d) NO JUDICIAL REVIEW- A waiver under this section shall not be subject to judicial review.

SEC. 303. NOX PRECONSTRUCTION REQUIREMENTS FOR NEW GENERATION.

During any period (not in excess of 2 years) during which an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State, if the Governor submits a request for such action to the Administrator of the Environmental Protection Agency, the Administrator may waive, for not more than a one year period, for new electric generation units located in that State, the requirements of section 111 of the Clean Air Act relating to oxides of nitrogen and the preconstruction requirements relating to oxides of nitrogen applicable to such units under applicable implementation plan provisions in effect in that State. At the expiration of such waiver, such units shall be required to meet all such requirements. Whenever the Administrator receives a Governor's request for a waiver under this section, the Administrator shall make a determination regarding such request within 45 days from the date on which such request is received.

SEC. 304. FEDERAL GENERATION DURING STATE EMERGENCIES.

(a) DEFINITION- For purposes of this section, the term `qualified Federal electric generation facility' means any electric generation facility (other than a hydroelectric power generation facility) owned or operated by a department, agency, or instrumentality of the United States and located in a State in which an electricity emergency has been declared as provided in this section. Such term includes backup generators and portable generators.

(b) AUTHORIZATION OF GENERATION- During any period (not in excess of 2 years) during which an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State, if the Governor submits a request for such action to the Secretary of Energy, the Secretary may authorize any department, agency, or instrumentality of the United States that owns or operates a qualified Federal electric generation facility, to generate electric energy for consumption by such department, agency, or instrumentality or for sales to such State for local distribution in the State to assist in relieving emergency electric power shortages if reimbursement is assured by the recipient of such power or by a State government.

SEC. 305. EMERGENCY GENERATION.

(a) DEFINITION- The term `high electricity emergency day' means, for any State, a day on which a State agency determines that rolling electric blackouts are imminent and--

(1) in the case of California, during which a Stage III Emergency has been declared by the California Independent System Operator; or

(2) in the case of any other State, a similar emergency has been declared by an appropriate State agency in such other State.

(b) EXPEDITED APPROVAL FOR EMERGENCY GENERATION PROVISIONS- The Administrator of the Environmental Protection Agency shall expedite the consideration and approval of State implementation plan amendments submitted to the Administrator by a State under the Clean Air Act to provide the emergency generation authority described in subsection (c) or (d) of this section. Whenever the Administrator receives a proposed plan amendment under this section, the Administrator shall make a determination regarding such amendment within 45 days from the date on which such amendment is received.

(c) NOX WAIVER AUTHORITY FOR NATURAL GAS-FIRED GENERATION--Any State in which high electricity emergency days may occur may submit a State implementation plan amendment to the Administrator of the Environmental Protection Agency under the Clean Air Act pursuant to this subsection. Under such amendment, the Governor of the State may temporarily waive all emission limitations in effect under such plan, including any limitations set forth in a permit, regarding emissions of oxides of nitrogen from natural gas fired electric power generation facilities in that State to permit additional generation on any high electricity emergency day or any portion of such a day. Such waiver may be issued only during a period (not in excess of 2 years) during which an electricity emergency is in effect in a State pursuant to a declaration by the Governor of the State. Such temporary waiver shall not authorize any emission source to disconnect or cease using any emission control device used to control emissions of oxides of nitrogen. No such temporary waiver may remain in effect for a period longer than 6 consecutive months.

(d) EMERGENCY GENERATION FOR PRIVATE USE- Any State in which high electricity emergency days may occur may submit a State implementation plan amendment to the Administrator of the Environmental Protection Agency under the Clean Air Act pursuant to this subsection. Under such amendment, if the Governor of the State has declared an electricity emergency in the State, the Governor may issue an order waiving, during any high electricity emergency day or portion thereof, any otherwise applicable requirements of the plan that would have the effect or prohibiting or limiting the operation by any person or entity or class or category thereof in such State of any type of electric energy generation, using any type of fuel available, if such electric energy is consumed only by the person or entity generating it. Such waiver shall not authorize any emission source to disconnect or cease using any emission control device used to control emissions of any air pollutant (within the meaning of the Clean Air Act). Each such order shall expire 6 months after the date of issuance.

(e) EFFECT ON AIR QUALITY- The Administrator of the Environmental Protection Agency may approve a plan amendment described in subsection (c) or (d) of this section only if the Administrator determines that such amendment will not increase the net emissions of any air pollutant in any affected air quality region and that the amendment otherwise meets the requirements of the Clean Air Act.

(f) STAY OR INJUNCTIONS PROHIBITED- No stay or injunction may be issued by any court under section 304 of the Clean Air Act against the Administrator of a State regarding the submission or approval of a plan amendment referred to in this section.

SEC. 306. REGIONAL TRANSMISSION ORGANIZATION IN WESTERN REGION.

(a) IN GENERAL- After notice and an opportunity for a hearing, the Federal Energy Regulatory Commission shall establish a regional transmission organization for the region covered by the Western Systems Coordinating Council if 10 or more of the Governors of the 14 States covered in whole or in part by the Western Systems Coordinating Council sign a petition submitted by one or more of such Governors requesting the Commission to establish such organization.

(b) FEDERAL TRANSMISSION FACILITIES- The Bonneville Power Administration and the Western Area Power Administration are each authorized and required to participate in a regional transmission organization established under this section. Each other entity (including municipally owned entities and cooperatives) owning or operating transmission facilities within the region covered by the Western Systems Coordinating Council shall participate in any such organization. Notwithstanding any other law, participation may include delegation of operation and control of the transmission system concerned to a regional transmission organization or other method of participation, under terms and conditions the power marketing administration concerned determines necessary or appropriate, including being bound by operational and other orders of the regional transmission organization and by the results of arbitration of disputes with the organization or with other participants.

(c) STATE AUTHORITY NOT AFFECTED- Nothing in this section affects the authority of States to regulate transmission facility maintenance, planning, siting, and other utility functions.

(d) SUNSET- No regional transmission authority established under this section shall be required to continue to operate after the date 3 years after the regional transmission organization is established.

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