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Federal Register/ Vol. 69, No. 168 /Tuesday, August 31, 2004/Rules and Regulations 53227 <br />wide range of activities within the <br />designation. Therefore, we concluded in <br />the final analysis, which reviewed and <br />incorporated public comments, that no <br />significant economic impacts (Le, will <br />not have annual effect on the economy <br />of $100 million or more or affect the <br />economy in a material way as defined <br />by Office of Management and Budget <br />and discussed further in the "Required <br />Determinations" section below) are <br />expected from critical habitat <br />designation above and beyond that <br />already imposed by listing the owl. A <br />copy of the economic analysis is <br />included in our supporting record and <br />may be obtained by contacting the New <br />Mexico Ecological Services Field Office <br />(see ADDRESSES section) of from our <br />Web site http: / /ifw2es.fws.govlmsol. <br />Impacts associated solely with this <br />rulemaking are expected to result in <br />additional administrative costs to <br />Action agencies due to additional <br />consultation and documentation <br />requirements. These additional <br />administrative costs are expected to be <br />on the order of $72,000 to $238,000 <br />annually. Based on a review of <br />consultation records, there has not been <br />a measurable increase in the number of <br />consultations occurring annually in <br />those areas where owl critical habitat <br />was finalized in 2001. Some additional <br />administrative costs are expected for <br />discussing adverse modification in the <br />consultation documentation and for <br />reinitiating consultations. Based on <br />discussions with land management <br />agency personnel, these costs will be <br />small, as the amount of additional work <br />associated with these efforts is not <br />expected to be significant. In particular, <br />our economic analysis found that FS <br />Region 3 personnel are already <br />managing owl habitat in compliance <br />with Recovery Plan guidance, indicating <br />this rulemaking will not result in <br />additional impacts, with the exception <br />of a slight increase in administrative <br />efforts. Moreover, FS personnel Regions <br />2 and 4 believe that for activities within <br />the designation, the cost of having to <br />address the owl in their required <br />environmental documentation is only a <br />minor cost because little activity is <br />occurring or planned within the <br />designation. Additionally, the BLM in <br />Colorado and Arizona indicated that <br />critical habitat has been designated <br />since 2001 and has not resulted in any <br />significant increase in workload. <br />Finally, the BLM in Utah indicated that <br />only limited impacts on oil and gas <br />activities related to this rulemaking are <br />expected in the future because owl - <br />related delays in drilling activities <br />would be expected even in the absence <br />of this designation. <br />The amount of additional <br />administrative costs attributable to this <br />rulemaking (i.e., that would not occur <br />absent the designation), is likely to be <br />only a portion of the total forecast <br />administrative costs. The future <br />administrative costs attributable solely <br />to this rulemaking are expected to be on <br />the order of 25 percent of total forecast <br />administrative costs of $72,000 to <br />$238,000 annually. Based on a review of <br />consultations that have occurred in the <br />areas where critical habitat was <br />designated in 2001 and on discussions <br />with land management personnel and <br />affected entities, additional future <br />project modification costs are unlikely <br />to occur under this current designation. <br />Therefore, the incremental costs <br />associated with this rulemaking are <br />expected to be minimal. <br />Required Determinations <br />Regulatory Planning and Review <br />In accordance with Executive Order <br />12866, this document is a significant <br />rule in that it may raise novel legal and <br />policy issues, but it is not anticipated to <br />have an annual effect on the economy <br />of $100 million or more or affect the <br />economy in a material way. Due to the <br />tight timeline for publication in the <br />Federal Register, the Office of <br />Management and Budget (OMB) has not <br />formally reviewed this rule. We <br />prepared an economic analysis of this <br />action to meet the requirement of <br />section 4(b)(2) of the Act to determine <br />the economic consequences of <br />designating the specific areas as critical <br />habitat. The draft economic analysis <br />was made available for public comment <br />and we considered those comments <br />during the preparation of this final rule. <br />The economic analysis indicates that <br />this rule will not have an annual <br />economic effect of $100 million or more <br />or adversely affect any economic sector, <br />productivity, competition, jobs, the <br />environment, or other units of <br />government. <br />Under the Act, critical habitat may <br />not be destroyed or adversely modified <br />by a Federal agency action; the Act does <br />not impose any restrictions related to <br />critical habitat on non - Federal persons <br />unless they are conducting activities <br />funded or otherwise sponsored or <br />permitted by a Federal agency. Because <br />of the potential for impacts on other <br />Federal agencies' activities, we <br />reviewed this action for any <br />inconsistencies with other Federal <br />agency actions. Based on our economic <br />analysis and information related to <br />implementing the listing of the species <br />such as conducting section 7 <br />consultations, we believe that this <br />designation will not create <br />inconsistencies with other agencies' <br />actions or otherwise interfere with an <br />action taken or planned by another <br />agency, nor will it materially affect <br />entitlements, grants, user fees, loan <br />programs, or the rights and obligations <br />of their recipients. <br />Regulatory Flexibility Act (5 U.S.C. 601 <br />et seq.) <br />Under the Regulatory Flexibility Act <br />(5 U.S.C. 601 et seq., as amended by the <br />Small Business Regulatory Enforcement <br />Fairness Act ( SBREFA) of 1996), <br />whenever an agency is required to <br />publish a notice of rulemaking for any <br />proposed or final rule, it must prepare <br />and make available for public comment <br />a regulatory flexibility analysis that <br />describes the effects of the rule on small <br />entities (i.e., small businesses, small <br />organizations, and small government <br />jurisdictions). However, no regulatory <br />flexibility analysis is required if the <br />head of the agency certifies the rule will <br />not have a significant economic impact <br />on a substantial number of small <br />entities. SBREFA amended the <br />Regulatory Flexibility Act (RFA) to <br />require Federal agencies to provide a <br />statement of the factual basis for <br />certifying that the rule will not have a <br />significant economic impact on a <br />substantial number of small entities. <br />SBREFA also amended the RFA to <br />require a certification statement. We are <br />hereby certifying that this rule will not <br />have a significant effect on a substantial <br />number of small entities. <br />According to the Small Business <br />Administration, small entities include <br />small organizations, such as <br />independent nonprofit organizations, <br />and small governmental jurisdictions, <br />including school boards and city and <br />town governments that serve fewer than <br />50,000 residents, as well as small <br />businesses defined at 13 CFR 121.201. <br />Small businesses that are potentially <br />impacted by the critical habitat <br />designation for the owl, as identified in <br />the final economic analysis, include the <br />timber industry (i.e., timber tract <br />operations, logging, support activities <br />for forestry, wood producer <br />manufacturing, and pulpmills); <br />livestock grazing industry (i.e., beef <br />cattle ranching and farming); oil and gas <br />industry (i.e., oil and gas extraction); <br />and rock quarry industry (i.e., stone <br />mining and quarrying). <br />SBREFA does not explicitly define <br />either "substantial number" or <br />"significant economic impact." <br />Consequently, to assess whether a <br />"substantial number" of small entities is <br />