Title IV of the Clean Air Act (the Act), as amended by the Clean Air Act Amendments of 1990, authorizes the Environmental Protection Agency (EPA or Agency) to establish the Acid Rain Program. The program sets emissions limitations to reduce acidic deposition and its serious, adverse effects on natural resources, ecosystems, materials, visibility, and public health. On January 11, 1993, the Agency promulgated final rules under title IV. Several parties filed petitions for review of the rules. On January 10, 1995, EPA and the parties signed a settlement agreement addressing reduced utilization issues. Based on a review of the record, the Agency concludes that the January 11, 1993 regulations concerning reduced utilization should be revised. The overall effect of the revisions is to reduce the reporting and recordkeeping burden on utilities. The regulations require that, unless certain requirements are met, the designated representative of a unit in Phase I of the program whose annual utilization of fuel is less than its average annual utilization in 1985-1987 must submit a reduced utilization plan. The regulations also require designated representatives to submit end-of-year compliance reports that estimate the sulfur dioxide emissions resulting from any underutilization of Phase I units and to surrender allowances for the estimated emissions. The Agency is revising the regulations to simplify the criteria for determining if a reduced utilization plan must be submitted: Where the end-of-year reporting and allowance surrender requirements are met, such a plan is not required. Further, the Agency is revising the formulas for estimating emissions resulting from underutilization to correct errors, clarify certain provisions, and take account of and facilitate compliance by Phase I units with multiple owners or whose owners are required by law to purchase electricity from non-utility power production facilities. The rule revision is being issued as a direct final rule beca