State of California
As required by the 1973 Endangered Species Act (ESA), the U.S. Fish & Wildlife Service (FWS) designate critical habitat for threatened and endangered species so that other federal agencies will avoid approving or sponsoring activities that lessen the chances for species recovery. The ESA also requires that FWS consider the economic impact of proposed critical habitat designation before finalizing the land areas to be included. The Secretary of the Interior may exclude areas of critical habitat designation where the economic costs are deemed too high relative to biological or other benefits.
EPS assisted FWS by conducting the economic analysis of the habitat designation for a number of federally listed endangered species located throughout the western U.S. The analysis examined how public and private landowners may modify their economic activities in light of the habitat designation. To date, EPS has provided an economic impact analysis of critical habitat designations associated with the following endangered species:
- Keck’s Checkermallow
- Vernal Pool Crustaceans and Plants (11 plants, 4 crustaceans)
- Baker’s and Yellow Larkspurs
- Tiger Salamander
- Munz’s Onion
- San Bernardino Carbonate Plants (5 plants)
- Coastal California Gnatcatcher
- Riverside Fairy Shrimp
- San Diego Fairy Shrimp
- Ventura Marsh Milk-Vetch
- Kneeland Pennycress
- Pacific Salmon and Steelhead
- Southwestern Arroyo Toad
- Southwestern Willow Flycatcher
For the above species, EPS identified and, to the extent possible, quantified the likely economic impacts from habitat designation over a 10- to 20-year time frame across a range of urban and rural counties. The economic impacts were found to be attributable primarily to (1) modifications to land use projects and activities, (2) increased regulatory consultation by public and private entities with federal agencies as part of the compliance process, and (3) regulatory uncertainty and project delays. The EPS analysis was published in the Federal Register and EPS assisted FWS in responding to public comments and finalizing the proposed designations.