1
<br />1
<br />1
<br />1
<br />1
<br />1
<br />i
<br />1
<br />1
<br />1
<br />1
<br />1
<br />1
<br />1
<br />1
<br />1
<br />1
<br />i
<br />1
<br />
<br />Federal Register / Vol. 59, No. 54 / Monday, March 21, 1994 / Rules and Regulations 13379
<br />comment period, the Service has
<br />determined that some areas are not
<br />required for the survival and recovery of
<br />the fishes because they do not contain
<br />the constituent elements, meet the
<br />additional selection criteria, or are not
<br />in historical habitaL In addition, other
<br />areas may contain constituent elements
<br />but may contribute little to the prospect
<br />of recovery for one or more of the four
<br />fishes. Some of these areas are within
<br />sections of designated critical habitat
<br />and will be evaluated on a case-by-case
<br />basis. Five stream sections are separable
<br />and have been removed from
<br />consideration as part of critical habitat
<br />because ofe lack of biological
<br />importance. These five areas are:
<br />• Davis Dam to the upstream end of
<br />Topock Marsh on the mainstem
<br />Colorado River (AZ, CA, NV) (bonytail
<br />chub)
<br />• Bonita and Eagle Creeks, tributaries
<br />to the Gila River (AZ) (razorback sucker)
<br />• Cherry-and Canyon Creeks,
<br />tributases to the Salt River (AZ)
<br />(razorback sacker)
<br />• Sycamore, Oak, and West Clear
<br />Creeks, tributaries to the Verde River
<br />(AZ) (razorback sucker)
<br />• The Verde River from Sullivan Lake
<br />to Peddnsville (AZ) (razorback suck")
<br />The Service reiterates that any or all
<br />of these sections could contribute to the
<br />recovery of one or more of the fishes;
<br />however. they do not provide a primary
<br />recovery-area and are considered only
<br />marginally important. The Service also
<br />notes that some of these areas may_not
<br />have been historiml habitat for the
<br />razorback sucker, a further indication
<br />that these areas may have only limited
<br />value in the recovery of these fishes.
<br />Economic Impacts
<br />Introduction
<br />Section 4(b)(2) of the Act directs the
<br />Secretary of the Interior (Secretary) to
<br />consider economic and other relevant
<br />impacts in determining whether to
<br />exclude proposed areas from the final
<br />designation of critical habitaL The
<br />Service, as delegated by the Secretary,
<br />may"odude areas from critical habitat
<br />designation when the benefits of
<br />exclusion outweigh the benefits of
<br />inclusion; provided that exclusion will
<br />not result in extinction of a species. An
<br />economic analysis (Brookshire et al.
<br />1994) was conducted on the
<br />consequences of this action (critical
<br />habitat designation).
<br />The study region for the economic
<br />analysis includes the seven States of the
<br />Basin: Arizona, California, Colorado,
<br />New Mexico, Nevada, Utah, and
<br />Wyoming. The timeframe chosen for the
<br />study, 1995 through 2020, encompasses
<br />the time period projected for the
<br />recovery of the endangered fishes.
<br />Linkages between the biological
<br />requirements for recovering the
<br />endangered fishes and economic
<br />activities in the region formed the basis
<br />for the economic analysis. As an index
<br />of these biological requirements,
<br />adjustments made in the operations of
<br />Federal reservoirs in the Basin and/or
<br />mitigation of nonflow related activities
<br />along the river's 100-year flood plain
<br />were included. The effects of recovery
<br />efforts on future water depletions in the
<br />Basin also were taken into
<br />consideration. The direct and indirect
<br />impacts of these possible changes on
<br />current and prospective economic
<br />activities were then estimatedfor each
<br />State, the region, and the national
<br />economy.
<br />It is impossible to predict the outcome
<br />of future section 7 consultations
<br />involving endangered fishes in the
<br />Basin. If the Upper Basin and San Juan
<br />Recovery Implementation Programs
<br />(RIP) do not show sufficient and timely
<br />progress in recovering the endangered
<br />fishes, some planned water
<br />developments may be modified, scaled
<br />back, delayed, or foregone. This -
<br />assumption provides an upper bound on
<br />the potential magnitude of economic
<br />impacts associated with the critical
<br />habitat designation. If the R111's are
<br />successful in achieving their objectivm
<br />many of the negative economic impacts
<br />can be avoided.
<br />Economic Modeling
<br />Two types of economic effects are of
<br />interest when considering the economic
<br />impacts of critical habitat designations:
<br />regional economic impacts andnational
<br />economic efficiency impacts. Regional
<br />economic impacts refer to the direct and
<br />indirect impacts of the critical habitat
<br />designations on specific geographic
<br />regions, such as States or other
<br />subregions of the country.
<br />Regional economic impacts were
<br />analyzed using input-output (1-0)
<br />models that organize the basic
<br />accounting relationships that describe
<br />the production sector of the economy
<br />(Brookshire et aL 1993). The 1-0
<br />method is based on the assumption that
<br />all sectors of the economy are related,
<br />and the production of a good or service
<br />can be described by a recipe whose
<br />ingredients are the outputs from other
<br />sectors of the economy. The primary
<br />inputs are labor, capital, and other raw
<br />resources. Through its multiplier
<br />analysis, the 1-0 model is capable of
<br />generating estimates of the changes in
<br />output for economic sectors, changes in
<br />employment and changes in income
<br />due to the critical habitat designation.
<br />The models report total impacts
<br />resulting from interactions among the
<br />sectors of the economv.
<br />National economic efficiency impacts
<br />refer to the overall net impacts on the
<br />national economy after the effects of
<br />interregional transfers have been
<br />accounted for. The goal of a national
<br />efficiency analysis is to determine
<br />whether an action would have an
<br />overall positive or negative impact on
<br />the national economy.
<br />National economic efficiency impacts
<br />were analyzed In this study using a
<br />Computable General Equilibrium (CGE)
<br />model. The CGE model captures the
<br />economic interactions of consumers, the
<br />production sectors, and the government
<br />sectors. The CGE model also analyzes
<br />resource reallocations (e.g.. changes in
<br />river flows as represented by-increased
<br />or decreased hydroelectric generation)
<br />in a manner such that the net effects,
<br />not just the total effects. are calculated.
<br />Given this capability, the CGE model is
<br />able to estimate net-national efficiency
<br />impacts.
<br />Modeling Approach
<br />A separate 1-0 model was-developed
<br />for each State, and focused on the direct
<br />and indirect impacts generated by the
<br />critical habitat designation (Brookshire
<br />et at. 1993). In most cases, impacts in a
<br />given State generated impacts in
<br />neighboring States. Thus, it-was
<br />necessary to investigate potential
<br />offsetting impacts. As a result, an 1-0
<br />model -was constructed that investigated
<br />the impacts of the entire region (all
<br />seven States). In addition to the State
<br />and regional 1-0 models, a CGE model
<br />was developed for the economies of the
<br />seven-State area and the rest of the
<br />United States. This model provided a
<br />comprehensive aggregate assessment of
<br />the national economic efficiency
<br />impacts.
<br />Economic activity for the models was
<br />estimated using Impact Analysis for
<br />Planning W,(Pl AN)1982 data sets that
<br />were updated and projected through the
<br />year 2020, using data from the Bureau
<br />of Economic Analysis of the U.S.
<br />Department of Commerce. The IMPLAN
<br />data set contains 528 economic sectors
<br />that were aggregated to 20 sectors
<br />(Brookshire et al. 1994).
<br />Without Fish and With Fish Scenarios
<br />Two scenarios were used to evaluate
<br />economic activities associated with the
<br />critical habitat designation (Brookshire
<br />et aL 1994). The -without fish"
<br />economic scenario consisted of .
<br />projections of the level of economic
<br />activities that would be observed over
<br />the study period if no action was taken
<br />to recover the endangered fishes. The
|