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53230 Federal Register /Vol. 69, No. 168 /Tuesday, August 31, 2004 /Rules and Regulations <br />businesses that do not meet the <br />definition of a small entity (e.g., <br />federally sponsored projects). <br />In summary, we have considered <br />whether this rule would result in a <br />significant economic effect on a <br />substantial number of small entities. We <br />have concluded that this final <br />designation of critical habitat for the <br />owl would not affect a substantial <br />number of small entities. Therefore, we <br />are certifying that the designation of <br />critical habitat for the owl will not have <br />a significant economic impact on a <br />substantial number of small entities, <br />and a final regulatory flexibility analysis <br />is not required. <br />Small Business Regulatory Enforcement <br />Fairness Act (5 U.S.C. 802(2)) <br />Under the Small Business Regulatory <br />Enforcement Fairness Act (5 U.S.0 801 <br />et seq.), this designation of critical <br />habitat for the owl is not considered to <br />be a major rule. Our detailed assessment <br />of the economic effects of this <br />designation is described in the <br />economic analysis. Based on the effects <br />identified in our economic analysis, we <br />believe that this rule will not have an <br />effect on the economy of $100 million <br />or more, will not cause a major increase <br />in costs or prices for consumers, and <br />will not have significant adverse effects <br />on competition, employment, <br />investment, productivity, innovation, or <br />the ability of U.S. -based enterprises to <br />compete with foreign -based enterprises, <br />nor will the rule have a significant <br />economic impact on a substantial <br />number of small entities. Refer to the <br />final economic analysis for additional <br />discussion of the effects of this <br />determination. <br />Executive Order 13211 <br />On May 18, 2001, the President issued <br />Executive Order 13211 on regulations <br />that significantly affect energy supply, <br />distribution, and use. Executive Order <br />13211 requires agencies to prepare <br />Statements of Energy Effects when <br />undertaking certain actions. The <br />purpose of this requirement is to ensure <br />that all Federal agencies "appropriately <br />weigh and consider the effects of the <br />Federal Government's regulations on the <br />supply, distribution, and use of energy. <br />The OMB has provided guidance for <br />implementing this Executive Order that <br />outlines nine outcomes that may <br />constitute "a significant adverse effect" <br />when compared without the regulatory <br />action under consideration. One of these <br />criteria is relevant to this analysis — <br />increases in the cost of energy <br />distribution in excess of one percent. <br />Based on our economic analysis of this <br />designation of critical habitat for the <br />owl, we conclude that the impact to <br />energy distribution is not anticipated to <br />exceed the one percent threshold. Please <br />refer to the economic analysis where the <br />potential impacts are reviewed. <br />Therefore, this action is not a significant <br />energy action and no Statement of <br />Energy Effects is required. <br />Unfunded Mandates Reform Act (2 <br />U.S.C. 1501 et seq.) <br />In accordance with the Unfunded <br />Mandates Reform Act (2 U.S.C. 1501), <br />the Service makes the following <br />findings: <br />(a) This rule will not produce a <br />Federal mandate. In general, a Federal <br />mandate is a provision in legislation, <br />statute or regulation that would impose <br />an enforceable duty upon State, local, <br />Tribal governments, or the private sector <br />and includes both "Federal <br />intergovernmental mandates" and <br />"Federal private sector mandates." <br />These terms are defined in 2 U.S.C. <br />658(5) –(7). "Federal intergovernmental <br />mandate" includes a regulation that <br />"would impose an enforceable duty <br />upon State, local, or Tribal <br />„ <br />Federal <br />destruction or adverse modification of <br />critical habitat rests squarely on the <br />Federal agency. Furthermore, to the <br />extent that non - Federal entities are <br />indirectly impacted because they <br />receive Federal assistance or participate <br />in a voluntary Federal aid program, the <br />Unfunded Mandates Reform Act would <br />not apply; nor would critical habitat <br />shift the costs of the large entitlement <br />programs listed above on to State <br />governments. <br />(b) We do not believe that this rule <br />will significantly or uniquely affect <br />small governments. This determination <br />is based on information from the <br />economic analysis conducted for this <br />designation of critical habitat for the <br />owl and the fact that critical habitat is <br />only being designated on Federal lands. <br />As such, a Small Government Agency <br />Plan is not required. <br />governments with two exceptions. It <br />excludes "a condition of Federal <br />Takings <br />assistance." It also excludes "a duty <br />In accordance with Executive Order <br />arising from participation in a voluntary <br />12630 ( "Government Actions and <br />Federal program," unless the regulation <br />Interference with Constitutionally <br />"relates to a then- existing Federal <br />Protected Private Property Rights "), we <br />program under which $500,000,000 or <br />have analyzed the potential takings <br />more is provided annually to State, <br />implications of designating critical <br />local, and Tribal governments under <br />habitat for the owl in a takings <br />entitlement authority," if the provision <br />implications assessment. The takings <br />would "increase the stringency of <br />implications assessment concludes that <br />conditions of assistance" or "place caps <br />this final designation of critical habitat <br />upon, or otherwise decrease, the Federal <br />for the owl does not pose significant <br />Government's responsibility to provide <br />takings implications. <br />funding" and the State, local, or Tribal <br />"lack <br />Federalism <br />governments authority" to adjust <br />accordingly. (At the time of enactment, <br />In accordance with Executive Order <br />these entitlement programs were: <br />13132, this rule does not have <br />Medicaid; AFDC work programs; Child <br />significant Federalism effects. A <br />Nutrition; Food Stamps; Social Services <br />Federalism assessment is not required. <br />Block Grants; Vocational Rehabilitation <br />In keeping with Department of the <br />State Grants; Foster Care, Adoption <br />Interior policy, the Service requested <br />Assistance, and Independent Living; <br />information from, and coordinated <br />Family Support Welfare Services; and <br />development of this critical habitat <br />Child Support Enforcement.) "Federal <br />designation with appropriate State <br />private sector mandate" includes a <br />resource agencies in New Mexico, <br />regulation that "would impose an <br />Arizona, Colorado, and Utah. The <br />enforceable duty upon the private <br />impact of the designation on State and <br />sector, except (i) a condition of Federal <br />local governments and their activities <br />assistance; or (ii) a duty arising from <br />was fully considered in the economic <br />participation in a voluntary Federal <br />analysis. As discussed above, the <br />program <br />Thy de g�nahon o�fcnhcal habitat �" <br />designation of critical habitat for the <br />owl would have little incremental <br />does no impos i legauy,'b indmgduty = <br />-'Impact on State and local governments <br />on,no Fedraigovernment entities or <br />and their activities. <br />pnvate partie, Under the Act, the only <br />regulatory effect is that Federal agencies <br />Civil Justice Reform <br />must ensure that their actions do not <br />In accordance with Executive Order <br />destroy or adversely modify critical <br />12988, the Office of the Solicitor has <br />habitat under section 7. While non- <br />determined that the rule does not <br />