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[Federal Register: December 12, 2007 (Volume 72, Number 238)]
[Rules and Regulations]               
[Page 70647-70714]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12de07-9]                         

[[Page 70647]]

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Part II

Department of the Interior

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Fish and Wildlife Service

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50 CFR Part 17

Endangered and Threatened Wildlife and Plants; Designation of Critical 
Habitat for the San Diego Fairy Shrimp (Branchinecta sandiegonensis); 
Final Rule

[[Page 70648]]

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DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

50 CFR Part 17

RIN 1018-AV37

 
Endangered and Threatened Wildlife and Plants; Designation of 
Critical Habitat for the San Diego Fairy Shrimp (Branchinecta 
sandiegonensis)

AGENCY: Fish and Wildlife Service, Interior.

ACTION: Final rule.

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SUMMARY: We, the U.S. Fish and Wildlife Service (Service), are 
designating revised final critical habitat for the San Diego fairy 
shrimp (Branchinecta sandiegonensis) under the Endangered Species Act 
of 1973, as amended (Act). Approximately 3,082 acres (ac) (1,248 
hectares (ha)) of habitat in Orange and San Diego counties, California, 
are being designated as critical habitat for the San Diego fairy 
shrimp. This revised final designation constitutes a reduction of 943 
ac (382 ha) from the 2000 designation of critical habitat for the San 
Diego fairy shrimp.

DATE: This rule becomes effective on January 11, 2008.

ADDRESSES: Comments and materials received, as well as supporting 
documentation used in the preparation of this revised final rule, will 
be available for public inspection, by appointment, during normal 
business hours, at the U.S. Fish and Wildlife Service, Carlsbad Fish 
and Wildlife Office, 6010 Hidden Valley Road, Carlsbad, CA 92011. The 
revised final rule, economic analysis, and maps are available on the 
Internet at http://www.fws.gov/carlsbad/.

FOR FURTHER INFORMATION CONTACT: Jim Bartel, Field Supervisor, U.S. 
Fish and Wildlife Service, Carlsbad Fish and Wildlife Office (see 
ADDRESSES); telephone 760-431-9440; facsimile 760-431-5901. If you use 
a telecommunications device for the deaf (TDD), call the Federal 
Information Relay Service (FIRS) at 800-877-8339.

SUPPLEMENTARY INFORMATION:

Background

    It is our intent to discuss only those topics directly relevant to 
the designation of critical habitat for the San Diego fairy shrimp in 
this revised final rule. For more information on the taxonomy, biology, 
and ecology of the San Diego fairy shrimp, please refer to the final 
listing rule published in the Federal Register on February 3, 1997 (62 
FR 4925), the original proposed and final critical habitat rules 
published in the Federal Register on March 8, 2000 (65 FR 12181) and 
October 23, 2000 (65 FR 63438), respectively, and the proposed rule to 
revise critical habitat published in the Federal Register on April 22, 
2003 (68 FR 19888).
    The San Diego fairy shrimp (Branchinecta sandiegonensis) is a small 
aquatic crustacean in the order Anostraca, generally restricted to 
vernal pools and other ephemeral (lasting a short time) basins in 
coastal Orange and San Diego Counties in southern California and in 
northwestern Baja California, Mexico. Vernal pools in southern 
California typically contain water in the winter and are dry in the 
summer. The San Diego fairy shrimp is a habitat specialist found in 
shallower pools that range in depth from 2 to 12 inches (in) (5 to 30 
centimeters (cm)) (Simovich and Fugate 1992, p. 111; Hathaway and 
Simovich 1996, p. 670). San Diego fairy shrimp feed on algae, diatoms, 
and particulate organic matter (Parsick 2002, pp. 37-41, 65-70). Male 
San Diego fairy shrimp are distinguished from males of other species of 
Branchinecta by differences in the distal (located far from the point 
of attachment) tip of the second antennae. The females carry their eggs 
or cysts in an oval or elongate ventral brood sac (Eriksen and Belk 
1999, pp. 20-24; Fugate 1993, p. 301). Females are distinguishable from 
females of other species of Branchinecta by the shape and length of the 
brood sac, the length of the ovary, and the presence of paired 
dorsolateral (located on the sides, toward the back) spines on five of 
the abdominal segments (Fugate 1993, p. 301).
    San Diego fairy shrimp occur in groups of vernal pools referred to 
as vernal pool complexes (Keeler-Wolf et al. 1998, p. 9). Vernal pool 
complexes tend to include between 5 and 50 vernal pools, although some 
contain as few as two vernal pools and some contain several hundred 
vernal pools. Vernal pools within a complex are generally 
hydrologically connected, meaning that water flows over the surface 
from one vernal pool basin to another and/or water flows and collects 
below ground such that the soil becomes saturated with water, and the 
vernal pool basins fill with water (Hanes et al. 1990, pp. 51-56). For 
this reason the vernal pool ecosystems, on which the San Diego fairy 
shrimp depend, are best described from a watershed perspective (Service 
1998a, p. 59). The vernal pool watershed includes all areas around a 
vernal pool complex needed to collect rainfall and adequately fill the 
vernal pool basins within the vernal pool complex. In rainy years, 
California's vernal pools begin to fill following the onset of fall and 
winter rains. Some pools in a complex have substantial watersheds that 
contribute to filling the vernal pools, while others fill almost 
entirely from rainfall (Hanes et al. 1990, pp. 51-54; Hanes and 
Stromberg 1998, pp. 38, 47-49). Subsurface inflows from surrounding 
soils may also be an important factor in the filling of some vernal 
pools (Hanes et al. 1990, pp. 55-56; Hanes and Stromberg 1998, pp. 41-
42).
    A recent mitochondrial DNA (genetic sequence) study sampled 223 San 
Diego fairy shrimp from 24 vernal pool complexes (Bohonak 2004, p. 2). 
Researchers identified 39 unique alleles; each unique allele was found 
only at specific vernal pool complexes or within isolated geographic 
areas (Bohonak 2004, pp. 2-9). This indicates that fairy shrimp within 
a vernal pool complex or in limited geographic areas are more closely 
related to each other than to those at more distant locations. This 
analysis of mitochondrial DNA also indicates that there are two 
distinct genetic clades (genetic groups within a taxa) among 
populations of San Diego fairy shrimp, referred to as Group A and Group 
B (Bohonak 2004, p. 3; Bohonak 2007, p. 1). The difference in the 
alleles within either of the clades is less that one percent 
divergence; however, between the two groups there is a 2.5 percent 
divergence between pairs of alleles. Bohonak states that ``this means 
individuals from Group A and B have been isolated from one another 
biologically for tens of thousands or perhaps millions of years with 
little or no dispersal or hybridization (2004, p. 3).'' The 
distribution of the two clades is unusual because with the degree of 
difference between the two clades one would expect them to be 
geographically separate; however, the two clades are somewhat 
intermixed geographically.
    The extant range of the San Diego fairy shrimp is restricted to San 
Diego and Orange Counties in the United States, and in northwestern 
Baja California in Mexico. San Diego County supports the largest number 
of remaining vernal pools occupied by the San Diego fairy shrimp. 
Scientists estimate vernal pool soils historically covered 200 square 
miles (mi) (518 square kilometers (km)) in San Diego County; habitat 
losses have been extensive, only remnants of most vernal pool 
landscapes remain (Bauder and McMillan 1998, p. 66). The majority of 
vernal pool habitat in coastal Orange County has also been lost; 
currently there are only five vernal pool complexes in Orange County 
known to

[[Page 70649]]

support the San Diego fairy shrimp (Riefner and Pryor, p. 300; Keeler-
Wolf et al. 1998, p. 63; Mattoni and Longcore 1997, pp. 71, 89; CNDDB 
2004, pp. 9, 11, 12, 29-32).

Previous Federal Actions

    On October 23, 2000, we published a final rule designating 
approximately 4,025 ac (1,629 ha) of critical habitat for the San Diego 
fairy shrimp in Orange and San Diego Counties, California (65 FR 
63438). Following publication of the final rule, a lawsuit was filed 
against the Service challenging the critical habitat designation by 
multiple parties, including the Building Industry Association of 
Southern California, the National Association of Home Builders, and the 
Foothill/Eastern Transportation Corridor Agency (Building Industry 
Association of Southern California et al. v. Norton, CV 01-7028 
(D.C.C., filed 1/17/01) (venue subsequently transferred to C.D.Cal. and 
case assigned CV 01-07028). On June 11, 2002, the U.S. District Court 
for the Central District of California granted our request for a remand 
of the San Diego fairy shrimp critical habitat designation so that we 
could reconsider the economic impact of designating any particular area 
as critical habitat. The Court ordered us to submit a new proposed rule 
to the Federal Register by April 11, 2003.
    On April 22, 2003, we published a proposed rule to designate 
approximately 6,098 ac (2,468 ha) of land within Orange and San Diego 
counties, California, as critical habitat for the San Diego fairy 
shrimp in the Federal Register, and we accepted public comments on the 
proposed revision until June 23, 2003 (68 FR 19888). On April 8, 2004 
(69 FR 18516), we published a notice in the Federal Register 
announcing: (1) The availability of the draft economic analysis (DEA) 
of the proposed rule to revise critical habitat for public review; (2) 
the reopening of the public comment period on the proposed rule; and 
(3) the scheduling of public hearings on the proposed critical habitat 
designation and DEA. Public hearings were conducted on April 29, 2004, 
in Carlsbad, California. The second public comment period closed on May 
10, 2004.
    The Service initiated work on the revised final critical habitat 
rule for the San Diego fairy shrimp, but because of other court-ordered 
priorities we did not complete the rule. On February 8, 2007, a motion 
was filed by the Plaintiffs requesting the Court to direct us to 
finalize the revised critical habitat designation for the San Diego 
fairy shrimp. We reached an agreement with the Plaintiffs whereby a 
revised final designation would be completed on or before November 1, 
2007. On April 3, 2007, we published a notice in the Federal Register 
announcing the reopening of the public comment period for the April 22, 
2003, proposed rule to revise critical habitat for the San Diego fairy 
shrimp, and we accepted comments and information until May 3, 2007 (72 
FR 15857). This rule is being finalized in compliance with the court 
order.

Summary of Comments and Recommendations

    As discussed in the Previous Federal Actions section above, we have 
opened three public comment periods associated with the 2003 proposed 
rule to revise critical habitat for the San Diego fairy shrimp; the 
second and third comment periods also sought public comment on the 
associated DEA. During these comment periods, we requested all 
interested parties to submit comments or information related to the 
proposed revision to the critical habitat designation, including, but 
not limited to, the following: Unit boundaries; species occurrence 
information and distribution; land use designations that may affect 
critical habitat; potential economic effects of the proposed 
designation; benefits associated with critical habitat designation; 
areas considered but not proposed for designation and the associated 
rationale for the non-inclusion/exclusion of these areas; and methods 
used to designate critical habitat.
    We informed all appropriate entities of the opening of these 
comment periods, including State and Federal agencies, County 
governments, elected officials, and other interested parties through 
telephone calls, letters, and news releases sent by facsimile, by U.S. 
mail, and/or by electronic mail. During the April 22 to June 23, 2003, 
comment period, we also invited public comment through the publication 
of notices in the following newspapers: Los Angeles Times, Orange 
County Register, The Press-Enterprise, San Bernardino Sun, and the San 
Diego Union-Tribune. During the April 8 to May 10, 2004, comment 
period, we announced the date and times of two public hearings that 
were held on the 2003 proposed revision to designated critical habitat 
and DEA. Hearings were held on April 29, 2004, from 1 p.m. to 3 p.m. 
and from 6 p.m. to 8 p.m. in Carlsbad, California. Transcripts of these 
hearings are available for inspection (see FOR FURTHER INFORMATION 
CONTACT section above).
    During the comment period that opened on April 22, 2003, and closed 
on June 23, 2003, we received 43 comments directly addressing the 
proposed critical habitat designation: 4 from peer reviewers, 3 from 
Federal agencies, 3 from local jurisdictions, and 33 from organizations 
or individuals. During the comment period that opened on April 8, 2004, 
and closed on May 10, 2004, we received 11 comments directly addressing 
the proposed critical habitat designation and the DEA. Of these latter 
comments, one was from a State agency, 5 were from local jurisdictions, 
and 5 were from organizations or individuals. During the comment period 
that opened on April 3, 2007, and closed May 3, 2007, we received 12 
comments directly addressing the proposed revision to critical habitat 
and the DEA. Of these comments, 3 were from Federal agencies, 3 were 
from local jurisdictions, and 6 were from organizations or individuals.

Peer Review

    In accordance with our policy published on July 1, 1994 (59 FR 
34270), we solicited expert opinions from eight individuals with 
scientific expertise that included familiarity with the species, the 
geographic region where the species occurs, and conservation biology 
principles. We received responses from four of the peer reviewers. The 
peer reviewers were generally supportive of the designation of critical 
habitat. However, they stressed the importance of the genetic 
uniqueness of each population of San Diego fairy shrimp and the need to 
identify and preserve all remaining populations of the species.
    We reviewed all comments received from the peer reviewers and the 
public for substantive issues and new information regarding critical 
habitat for the San Diego fairy shrimp. All comments received were 
grouped into general issue categories relating to the proposed rule to 
revise critical habitat for San Diego fairy shrimp and are addressed in 
the following summary and incorporated into this revised final rule as 
appropriate.

Peer Review Comments

    Comment 1: Three peer reviewers stated we should take the genetic 
information on the San Diego fairy shrimp into consideration when 
designating critical habitat. The peer reviewers stated that allozyme 
(enzyme) studies (citing Davies et al. 1997) and mitochondrial DNA 
(genetic sequence) studies (citing Bohonak 2004) indicate that within 
pool complexes, there is a low degree of genetic variation, but

[[Page 70650]]

between vernal pool complexes there is a high degree of genetic 
variation. The analysis of mitochondrial DNA indicates that there are 
two distinct genetic clades (genetic groups within a taxa) among 
populations of San Diego fairy shrimp (Bohonak 2004, p. 3). The peer 
reviewers indicated that the two distinct genetic clades are important 
for the conservation of the San Diego fairy shrimp.
    Our Response: We agree with the peer reviewers that the 
preservation of the genetic diversity of the San Diego fairy shrimp 
across its range is important to the conservation of this species, and 
we believe that we have captured the two distinct genetic clades 
referenced by the peer reviewers and described in the background 
section of this revised final rule in our designation. The distribution 
of the two clades is unusual because the two clades are not 
geographically separate across the extant range of the species. Our 
final designation captures a range of vernal pool complexes within each 
identified clade. Vernal pool complexes sampled in Fairview Park 
(subunit 1B) (Bohonak 2007, p. 1), Del Mar Mesa (subunit 4A/B), Carmel 
Mountain (subunit 4E and 4F), Lopez Ridge (subunit 4H), Winterwood 
(subunit 4I), Otay Mesa (subunit 5F), Lower Otay Reservoir (subunit 
5H), and Marron Valley (subunit 5I) are in ``Group A'' (Bohonak 2004, 
pp. 3-9). These sites represent 10 of 16 sites in ``Group A'' sampled 
by researchers (Bohonak 2004, pp. 7-9). Vernal pool complexes sampled 
at San Onofre State Beach (subunit 2A) (Bohonak 2007, p. 1), Ramona 
(subunits 3E.1-3E.4), SANDER (subunit 4K), Montgomery Field (subunit 
4M), Murphy Canyon (subunit 4C), and Chollas Heights (subunit 4D) are 
in ``Group B'' (Bohonak 2004, pp. 3-9). These sites represent 6 of 12 
sites in ``Group B'' sampled by researches (Bohonak 2004, pp. 7-9; 
Bohonak 2007, p. 1).
    Comment 2: Three peer reviewers expressed concern that Habitat 
Conservation Plans (HCPs) and Integrated Natural Resource Management 
Plans (INRMPs) may not provide the same level of protection for the San 
Diego fairy shrimp as critical habitat, and therefore can not be 
substituted for the designation of critical habitat.
    Our Response: Where a Federal nexus exists, lands designated as 
critical habitat are protected from destruction or adverse modification 
under section 7 of the Act. However, to be successful, the conservation 
of the San Diego fairy shrimp relies on proactive conservation and 
management of vernal pool complexes rather than mere avoidance of 
certain habitat impacts under section 7 of the Act. Habitat 
conservation plans and INRMPs typically incorporate on-going management 
and protection for the San Diego fairy shrimp that will benefit, and is 
critical to, the long-term conservation of the species. This type of 
long-term management would not necessarily result from a section 7 
consultation on an area where critical habitat has been designated. In 
addition, the protection and management afforded San Diego fairy shrimp 
habitat under HCPs extend to private lands that may otherwise lack a 
Federal nexus triggering consultation under section 7 of the Act.
    Comment 3: One peer reviewer stressed the importance of viewing 
vernal pools as ecosystems with several important components, such as 
intact upland habitat and functional watersheds that contribute to the 
health and productivity of the vernal pool ecosystem and to the 
conservation of the San Diego fairy shrimp.
    Our Response: We have addressed this comment by providing a more 
detailed description of the primary constituent elements (PCEs) in this 
revised final rule. The boundaries of each critical habitat subunit 
generally correspond to the boundaries of functional watersheds 
surrounding the included vernal pool complexes. We have attempted to 
incorporate all of the features that the peer reviewer described that 
we have determined to be essential to the conservation of the San Diego 
fairy shrimp (see the Primary Constituent Elements section for further 
discussion of this topic).

Public Comments

INRMPs and Department of Defense Lands
    We received several comments related to the exclusion and exemption 
of Department of Defense (DOD) lands from the revised final critical 
habitat. We received comments from the U.S. Navy (Navy) regarding the 
proposed designation of critical habitat on Marine Corps Base Camp 
Pendleton (MCB Camp Pendleton), and separate comments regarding the 
proposed designation on Marine Corps Air Station Miramar (MCAS 
Miramar), Naval Radio Receiving Facility (NRRF), Naval Outlying Landing 
Field (NOLF), and Navy housing at Chollas Heights and Murphy Canyon 
under Naval Base Coronado. We also received comments from individuals, 
some stating that DOD lands should be designated as critical habitat, 
and others stating that DOD lands should not be encumbered by critical 
habitat.
    Comment 4: The Navy requested that critical habitat not be 
designated at MCB Camp Pendleton, MCAS Miramar, NRRF, and NOLF, based 
on approved INRMPs for these installations and adverse affects to 
military training and readiness. Another commenter also requested that 
military lands at MCB Camp Pendleton not be designated as critical 
habitat.
    Our Response: In the April 22, 2003, proposed rule to revise 
critical habitat for the San Diego fairy shrimp (68 FR 19888), we 
considered but did not propose critical habitat on MCAS Miramar, NRRF, 
and on mission essential training areas at MCB Camp Pendleton under 
section 4(b)(2) of the Act. The April 22, 2003, rule proposed to 
designate some non-training areas at MCP Camp Pendleton and at NOLF. In 
this revised final designation, we have determined that all the INRMPs 
in place at MCAS Miramar, NRRF, MCB Camp Pendleton, and NOLF provide a 
benefit to San Diego fairy shrimp, and therefore these lands are exempt 
from this revised final critical habitat under section 4(a)(3) of the 
Act (see Exemptions and Exclusions section below for a detailed 
discussion of these exemptions).
    Comment 5: The Navy requested that critical habitat not be 
designated at the vernal pool areas at Murphy Canyon Navy Housing and 
Chollas Heights Navy Housing because they plan to complete an INRMP for 
these areas. The Navy continued to request that should critical habitat 
be designated at these areas that the Service commit to revisiting the 
designation upon the Navy's completion of an INRMP or other management 
plan for these areas.
    Our Response: The vernal pool complexes at Murphy Canyon Navy 
Housing and Chollas Heights areas are not covered under an INRMP at 
this time; therefore they are not appropriate to consider for exemption 
under section 4(a)(3) of the Act. The vernal pool complexes at Murphy 
Canyon Navy Housing and Chollas Heights areas have been preserved for 
the benefit of the San Diego fairy shrimp and other vernal pool 
species. The vernal pool complexes at these two Housing Areas provide 
high quality habitat for the San Diego fairy shrimp and are some of the 
last remaining areas in urban San Diego that support this species. We 
applaud the past conservation work that the Navy has implemented at 
these two housing areas, and we look forward to working with the Navy 
to minimize any financial or regulatory burden associated with this 
critical habitat designation. It is our understanding that the Navy is 
working to complete an INRMP that will include these two areas and will 
secure funding

[[Page 70651]]

for the long-term management of these two areas for the benefit of the 
San Diego fairy shrimp. Features essential to the conservation of the 
San Diego fairy shrimp in these areas continue to require special 
management considerations and protections and are therefore included in 
this revised final designation. At such time as the Navy completes an 
INRMP for these areas, we can assess any benefits provided to the San 
Diego fairy shrimp and revise the designation through the rulemaking 
process consistent with available funding and program priorities.
    Comment 6: Some commenters stated that our exclusion of INRMPs is 
not legally or scientifically justified because the commenter believes 
that the INRMPs, specifically those for MCB Camp Pendleton and MCAS 
Miramar, do not adequately protect vernal pools or San Diego fairy 
shrimp.
    Our Response: Section 318 of National Defense Authorization Act for 
Fiscal Year 2004 (Pub. L. 108-136) amended section 4(a)(3) of Act to 
address the relationship of INRMPs to critical habitat by adding a new 
section, 4(a)(3)(B). This amendment prohibits us from designating as 
critical habitat any lands or other geographical areas owned or 
controlled by DOD, or designated for its use, that are subject to an 
INRMP prepared under section 101 of the Sikes Act, if the Secretary of 
the Interior (Secretary) determines, in writing, that such plan 
provides a benefit to the species for which critical habitat is 
proposed for designation. Lands at MCB Camp Pendleton, MCAS Miramar, 
NRRF, and NOLF are exempt from critical habitat for the San Diego fairy 
shrimp under section 4(a)(3) of the Act as we have determined that 
these installations' INRMPs benefit the San Diego fairy shrimp and 
features essential to its conservation (see Exemptions and Exclusions 
section below for a detailed discussion on exclusions and exemptions). 
We believe that these exemptions are legally and scientifically 
justified because implementation of these INRMPs will benefit the San 
Diego fairy shrimp and its habitat at each installation.

Habitat Conservation Plans and Natural Community Conservation Plans

    We received several comments related to the exclusion or inclusion 
of Habitat Conservation Plans (HCPs) and Natural Community Conservation 
Plans (NCCPs). The comments that we received have been paraphrased and 
grouped to better clarify how we have handled HCPs and NCCPs in this 
revised final designation of critical habitat.
    Comment 7: We received comments that discussed the benefits of 
excluding critical habitat in areas covered by HCPs and NCCPs and 
comments that discussed the benefits of designating critical habitat in 
areas covered by HCPs and NCCPs. Commenters that supported the 
exclusion of areas covered by HCPs and NCCPs stated that these plans 
provide superior conservation than the section 7 process because HCPs 
and NCCPs plan for conservation at the landscape level rather than 
using a project-by-project approach. Supporters of the exclusion of 
critical habitat in these areas stated that the exclusion of critical 
habitat will: Benefit partnerships and future planning; prevent 
additional regulation; avoid legal challenges that HCPs will result in 
``adverse modification'' of critical habitat; and support 
Implementation Agreements. Supporters of the designation of critical 
habitat in areas covered by HCPs and NCCPs stated that the designation 
of critical habitat provides additional protection and conservation 
benefit to the San Diego fairy shrimp, which is needed to avoid impacts 
that the HCPs and NCCPs do not protect against. Other commenters stated 
that HCPs and NCCPs are often under-funded, and actual implementation 
is sometimes ineffective. One commenter stated that the exclusion of 
areas covered by HCPs from critical habitat is neither legally sound 
nor appropriate as demonstrated by the October 13, 2006, ruling by the 
U.S. District Court for the Southern District of California (Southwest 
Center for Biological Diversity v. Bartel, CV 98-2234), which clearly 
rules that the Multiple Species Conservation Program (MSCP) is 
ineffective, specifically for protecting the fairy shrimp. The 
commenter stated that the MSCP cannot act as a surrogate for critical 
habitat, and lands under the MSCP (and other HCPs) should not be 
excluded from critical habitat designation.
    Our Response: We believe that regional HCPs and NCCPs typically 
provide for greater conservation benefits to species than project-by-
project consultations conducted under section 7 of the Act. Because 
large HCPs approach conservation from a regional perspective, these 
plans have the advantage of addressing conservation issues from a 
coordinated, integrated perspective rather than a piecemeal project-by-
project approach. Moreover, regional HCPs typically provide for the 
proactive monitoring and management of conserved lands, which is 
important to the survival and recovery of the San Diego fairy shrimp. 
Such conservation needs are typically not addressed through the 
application of the statutory prohibition on adverse modification or 
destruction of critical habitat. Section 4(b)(2) of the Act authorizes 
the Secretary to consider the economic impact, national security 
impact, and any other relevant impact of specifying any particular area 
as critical habitat. An area may be excluded from critical habitat if 
it is determined that the benefits of exclusion outweigh the benefits 
of specifying a particular area as critical habitat, unless the failure 
to designate an area as critical habitat will result in the extinction 
of the species. We believe that the exclusions that we made in this 
final revised rule are legally supported under section 4(b)(2) of the 
Act and scientifically justified because of the level of protection and 
long-term conservation for the San Diego fairy shrimp that are a result 
of the HCPs that we have excluded. Please see the Exemptions and 
Exclusions section in this revised final rule for a detailed analysis 
on why we reaffirmed our 2003 determination that the benefit of 
excluding many of these areas from critical habitat is greater than the 
benefit of including them in a critical habitat designation.
    In response to the comment on the Southwest Center for Biological 
Diversity v. Bartel, (CV 98-2234) ruling, we have fully considered this 
significant information. In this challenge, brought by 14 environmental 
organizations, the court held that the protections afforded the San 
Diego fairy shrimp and six other vernal pool species under the City of 
San Diego's MSCP subarea plan are inadequate, and the Service's 
decision to issue an incidental take permit to the City based on the 
subarea plan was arbitrary and capricious. The court enjoined the 
incidental take permit with respect to ongoing and future land use 
activities that affect vernal pool habitat. The court concluded, in 
part, that the approach adopted in the City's MSCP subarea plan for 
evaluating project impacts on vernal pool species through the ACOE's 
site-specific permitting process under section 404 of the Clean Water 
Act had been effectively eliminated by the United States Supreme 
Court's SWANCC decision and that the remaining protections contained in 
the MSCP subarea plan do not adequately protect the San Diego fairy 
shrimp. As a result of the decision, we have designated as critical 
habitat lands covered by the City of San Diego's subarea plan that were 
considered, but not proposed, in the 2003 revised proposed rule (see 
Summary of Changes From Previously Designated Critical Habitat and 2003 
Proposed Rule section

[[Page 70652]]

and Unit Descriptions section below for more details).
    Comment 8: Some commenters requested that we exclude pending HCPs 
and lands enrolled in the NCCP program be excluded under section 
4(b)(2) of the Act or that we remove designated critical habitat 
concurrent with the final approval of an HCP or NCCP. Commenters 
recommended the establishment of a set of standards for HCPs and NCCPs 
that would provide for the automatic removal of these areas from 
critical habitat at the time these plans are completed. Some commenters 
stated that the designation of critical habitat in these areas may have 
a negative effect on entities pursuing an HCP and deter the completion 
of these pending HCPs. Specifically, we received requests to exclude 
the following pending HCPs: the Orange County Southern Subregion 
Habitat Conservation Program (Southern Subregion HCP); the City of 
Carlsbad Habitat Management Plan (Carlsbad HMP) under the Northwestern 
San Diego County Multiple Habitat Conservation Program (MHCP); and the 
County of San Diego's HCP covering the proposed critical habitat in 
Ramona.
    Our Response: Although we believe that an NCCP/HCP completed in the 
future will conserve the San Diego fairy shrimp if it is a covered 
species under the plan, we are not able to automatically remove 
designated critical habitat. In order to revise a critical habitat 
designation to take into consideration a completed NCCP or HCP, we are 
required under sections 4(b)(5) and 4(b)(6) of the Act to follow the 
appropriate rulemaking process, consistent with available funding and 
program priorities. We have reanalyzed the areas that were covered by 
pending HCPs or NCCPs at the time we proposed critical habitat and we 
have made the following conclusions. The Southern Subregion HCP was 
completed on January 10, 2007. This plan provides for the conservation 
of the San Diego fairy shrimp in critical habitat subunits 1D and 1E. 
We have determined that the benefits of exclusion outweigh the benefits 
of inclusion for these subunits, and therefore we have excluded these 
subunits from critical habitat under section 4(b)(2) of the Act (see 
the Exemptions and Exclusion section for more details on this 
exclusion.)
    The Carlsbad HMP under the MHCP was completed on November 15, 2004. 
This plan provides for the conditional coverage of the San Diego fairy 
shrimp; however, the coverage of this species is contingent on the 
specific commitment to manage vernal pool habitat within this plan. At 
this time the City of Carlsbad has not committed to manage vernal pool 
habitat or include the area we identified as critical habitat within 
this plan (subunit 2G); therefore the Carlsbad HMP under the MHCP does 
not cover the San Diego fairy shrimp at this time, and we have not 
excluded lands covered under this plan from critical habitat.
    At this time the HCP for northern San Diego County is still in the 
process of being written. No draft of this plan is available for public 
review. Therefore, we have not excluded lands covered under this plan 
from critical habitat in and around Ramona (subunits 3E.1, 3E.2, 3E.3, 
and 3E.4).
    Comment 9: We received comments requesting that we exclude the area 
covered by the San Diego Gas & Electric (SDG&E) NCCP/HCP.
    Our Response: We have reviewed the appropriateness of excluding 
lands covered by the SDG&E NCCP/HCP and determined that SDG&E does not 
own any lands containing features we have determined essential for the 
conservation of the San Diego fairy shrimp. Although SDG&E is bound by 
this NCCP/HCP on all easements and access roads that we have determined 
contain features essential to the conservation of the San Diego fairy 
shrimp, the actual owners of the land covered by the SDG&E NCCP/HCP are 
not bound by this plan. Therefore we believe it would be inappropriate 
to consider lands not under the control of SDG&E for exclusion based on 
the coverage provided in this NCCP/HCP.
    Comment 10: We received a comment requesting that we reaffirm our 
exclusion of the Orange County Central-Coastal NCCP/HCP (Central-
Coastal NCCP/HCP) in this final revised critical habitat.
    Our Response: In the April 22, 2003, proposed rule to designate 
revised critical habitat for the San Diego fairy shrimp, we discussed 
the Central-Coastal NCCP/HCP and stated that areas essential to the San 
Diego fairy shrimp covered by this plan should be excluded from 
critical habitat. In our review of the proposed critical habitat we 
found that, although critical habitat subunits 1A, 1B, and 1C are all 
near the boundary of this plan, there are no areas containing features 
essential to the San Diego fairy shrimp within the area covered by the 
Central-Coastal NCCP/HCP. Furthermore, we do not know of any vernal 
pools occupied by the San Diego fairy shrimp within the area covered by 
the Central-Coastal NCCP/HCP. Therefore, we have no reason to include a 
discussion of the Central-Coastal NCCP/HCP in this revised final 
designation of critical habitat.

Other Comments on Inclusions, Exclusions, and Removals

    Comment 11: One commenter requested that we exclude the Shaw Lorenz 
project site on Del Mar Mesa from critical habitat based on the 
conservation actions that the developer of the site is undertaking as 
part of this development.
    Our Response: The vernal pool habitat on the Shaw Lorenz project 
site was not known to be occupied at the time of the proposed rule and 
the Shaw Lorenz project site was not considered in the proposed rule to 
revise critical habitat (68 FR 19888, April 22, 2003). Therefore, we 
are not designating lands at the Shaw Lorenz project site as critical 
habitat for the San Diego fairy shrimp.
    Comment 12: The Army Corps of Engineers (ACOE) raised the following 
issues in their comments: (1) Some lands owned by the Department of 
Homeland Security (DHS) within proposed critical habitat subunits 5D 
and 5F have already been disturbed and developed by the construction of 
the 14-Mile Border Infrastructure System (BIS) project along the United 
States/Mexico border and should be removed from critical habitat; (2) 
lands owned by the DHS located north of the BIS within proposed 
critical habitat subunit 5F are being conserved by the DHS and should 
not be designated as critical habitat under section 3(5)(A) or should 
be excluded under section 4(b)(2) of the Act; and (3) lands within the 
footprint of the BIS do not or will not contain any of the PCEs for the 
San Diego fairy shrimp because of their use as an active enforcement 
zone subject to ongoing vehicular use.
    Our Response: We evaluated habitat on lands owned by the DHS within 
proposed subunits 5D and 5F, and removed or excluded all DHS-owned 
lands from this final designation. Some portions of the BIS project 
have already been completed and the habitat impacted no longer contains 
the PCEs essential to support the San Diego fairy shrimp; therefore, we 
removed these lands from the critical habitat designation. Please see 
the Summary of Changes From Previously Designated Critical Habitat and 
2003 Proposed Rule section for more information about the removal of 
these lands from critical habitat. The remaining 29 ac (12 ha) of DHS-
owned land within subunit 5F includes a vernal pool restoration site 
(Arnie's Point) where the DHS is offsetting impacts to vernal pool 
habitat associated with the construction of the BIS. The DHS is 
implementing conservation measures for the San Diego

[[Page 70653]]

fairy shrimp at Arnie's Point even though they have a waiver exempting 
them from obligations under section 7 of the Act. The entire strip of 
DHS lands (29 ac (12 ha)) along the U.S./Mexico border that meet the 
definition of critical habitat are important to national security. We 
determined that the benefits of excluding this area from critical 
habitat outweigh the benefits of including this area in critical 
habitat. A detailed discussion of our rationale for excluding these 
lands is provided in the Exemptions and Exclusions section of this 
revised final rule.
    Comment 13: One commenter disagreed with our proposed critical 
habitat unit for the land in East Otay Mesa. The commenter stated that 
some of the areas proposed as critical habitat have been developed. The 
commenter concluded that the mapping of the critical habitat is 
inaccurate. Another commenter provided comments on a specific area on 
Otay Mesa. This commenter stated that proposed critical habitat subunit 
5D is completely within either the City of San Diego subarea plan under 
the MSCP or the County of San Diego subarea plan under the MSCP. The 
commenter added that a significant portion of the proposed critical 
habitat in subunit 5D, including nearly 100 percent of the Otay 
Crossings Commerce Park project, is within the MSCP boundaries. The 
commenter stated that the inclusion of the MSCP land in critical 
habitat is counter to the involvement of the Service in the HCP 
process. The commenter stated that the Otay Crossings Commerce Park 
project site has been surveyed repeatedly for vernal pools and San 
Diego fairy shrimp and only vernal pools that were present on the site 
in the recent past have been eliminated by the construction of the BIS 
project. The commenter indicated that the East Otay Mesa area supports 
relatively few known locations of the listed San Diego fairy shrimp, 
and that these locations are scattered and are not vernal pool 
complexes. The commenter stated that the mesa area generally slopes to 
the south, providing limited flat areas where fairy shrimp pools could 
become established. The commenter concluded that the designation of 
this area as critical habitat for the San Diego fairy shrimp would not 
afford additional benefits to the species and would not play a 
significant role in the species' recovery.
    Our Response: The area identified in the April 22, 2003, proposed 
rule to revise critical habitat for San Diego fairy shrimp on East Otay 
Mesa was reevaluated at the suggestion of the commenters. Some of the 
land proposed as critical habitat was removed because it did not 
contain the PCEs, such as the lands owned by the DHS in subunit 5D. 
However, we found that the majority of the area was appropriately 
mapped and is included in the revised final designation. The areas we 
are designating as critical habitat contain the features essential for 
the conservation of the San Diego fairy shrimp. Critical habitat 
subunit 5D on eastern Otay Mesa contains vernal pools that support 
known locations of the San Diego fairy shrimp and the watershed area 
necessary to maintain the vernal pools. The area designated as critical 
habitat gently slopes to the south and contains several vernal pools 
dispersed across an area of approximately 391 ac (158 ha). The area on 
East Otay Mesa included in the designation is relatively undamaged by 
development and off-road vehicle activity. This area is entirely within 
the County of San Diego's Major and Minor Amendment Areas of the MSCP, 
which are not covered as part of the County's approved MSCP subarea 
plan. Therefore, it is not appropriate to exclude these lands because 
of their location within the boundaries of the MSCP (see Exemptions and 
Exclusions section below for a detailed discussion).

Criteria and Methodology

    Comment 14: Some commenters stated that the Service has deferred 
determination of whether specific areas contain PCEs, leaving 
landowners without effective notice as to whether their property 
contains critical habitat.
    Our Response: We have determined that all of the designated units 
contain all of the PCEs (see Unit Descriptions section below). In our 
proposed rule, we provided a description of the PCEs and maps of the 
areas that we proposed for critical habitat in the Federal Register. 
Additional maps showing all areas containing features arranged in the 
quantity and spatial configuration essential for the conservation of 
the San Diego fairy shrimp were made available to the public for review 
and comment on our Web site. Also, the contact information for the 
Carlsbad Fish and Wildlife Office was provided to the public. These 
resources were readily available to any landowner with a question 
regarding the critical habitat proposal, including the PCEs. We believe 
these measures effectively notified landowners concerning the proposed 
revised designation of critical habitat.
    Furthermore, in this revised final rule, we have re-evaluated all 
units and removed any areas that do not contain the PCEs (see Summary 
of Changes From Previously Designated Critical Habitat and 2003 
Proposed Rule section below). Where possible, the boundaries of final 
critical habitat have been refined to remove lands containing features 
such as roads, buildings, and other infrastructure that do not contain 
the PCEs; however, it was not possible to exclude all such areas from 
the designation. The scale of the maps we prepared under the parameters 
for publication within the Code of Federal Regulations may not reflect 
the exclusion of such developed areas. Any such structures and the land 
under them inadvertently left inside critical habitat boundaries shown 
on the maps of this revised final rule have been excluded by text and 
are not designated as critical habitat. Please refer to the Criteria 
Used to Identify Critical Habitat section below for more information 
about the mapping methodology. Landowners needing assistance in 
determining whether their property lies within designated critical 
habitat can contact the Carlsbad Fish and Wildlife Office for 
assistance (see ADDRESSES).
    Comment 15: One commenter indicated that the mapping methodology to 
identify areas for critical habitat is too general, and does not 
adequately account for site-specific analysis of the size and 
attributes of the vernal pools. Another commenter indicated that we had 
no scientific basis for using a 328 feet (ft) (100 meters (m)) grid for 
mapping of critical habitat.
    Our Response: In the April 22, 2003, proposed rule we used a 328 
feet (ft) (100 meters (m)) grid to delineate critical habitat. In order 
to make our mapping more specific we are no longer using the 328 feet 
(ft) (100 meters (m)) grid, instead we are mapping the specific areas 
that contain the PCEs for this species. We used a number of data 
sources to map the vernal pool complexes identified as critical habitat 
in this revised final rule. The vernal pool and San Diego fairy shrimp 
data referenced for this revised final rule include: Beauchamp and Cass 
1979 (pp. 1-15), Zedler and Ebert 1979 (pp. 1-150), Bauder 1986 (pp. 1-
29, Appendices), City of San Diego 2003 (pp. 1-125, Appendices), survey 
reports for San Diego fairy shrimp from 10(A)(1)(a) permits, and 
California Natural Diversity Database (CNDDB) (2004, 2007) information. 
In addition to this location data for vernal pools and San Diego fairy 
shrimp, we used topographical maps, soil maps (Bowman 1973, pp. 7-17), 
and aerial imagery to capture the PCEs associated with each vernal pool 
complex designated as critical habitat. We also relied on information 
obtained from site visits to vernal pool complexes to verify the

[[Page 70654]]

presence of the PCEs in the areas that we identified as critical 
habitat.
    Comment 16: One commenter stated that it is important to designate 
the entire area within each vernal pool complex, including the 
watershed of the vernal pool, in order to provide habitat for animals 
that are vectors for dispersal of San Diego fairy shrimp cysts. Another 
commenter provided similar information to specific vernal pool 
complexes in San Marcos, California.
    Our Response: This revised final designation includes vernal pool 
basins and the associated watersheds necessary to support the San Diego 
fairy shrimp; however, we did not include larger areas of habitat 
needed for animal dispersal vectors. We did not have enough specific 
information on this topic to include other areas with any degree of 
certainty. We believe that our discussion of the PCEs adequately 
captures the physical and biological features essential for 
conservation of the San Diego fairy shrimp (see Primary Constituent 
Elements section below for details). The information regarding vernal 
pool complexes added to the information that we previously had on the 
vernal pools in San Marcos; however, it did not significantly change 
our analysis of this area.
    Comment 17: One commenter stated that stochastic (random) events 
could drive the species to extinction since it no longer has the 
ability to meet the challenges of environmental or human-caused stress. 
The commenter stated that the exclusion of any area from critical 
habitat could result in the extinction of the San Diego fairy shrimp.
    Our Response: We agree that stochastic events could negatively 
impact the San Diego fairy shrimp throughout its range. We reaffirmed 
our 2003 determination to exclude areas covered by HCPs that provide 
for the conservation of vernal pool habitat and the San Diego fairy 
shrimp because these plans incorporate management and monitoring for 
vernal pool ecosystems. As environmental conditions change, management 
of these areas will also change to address new threats to the species 
and its habitat. The areas we excluded also provide for management 
actions to address human induced stresses such as off-road vehicle use 
or the illegal dumping of trash in preserve areas. We determined the 
exclusion of these areas from critical habitat designation under 
section 4(b)(2) of the Act will not result in the extinction of the San 
Diego fairy shrimp (see Exemptions and Exclusions section below for a 
detailed discussion).
    Comment 18: Several commenters requested that the Service expand 
the proposed critical habitat to include all essential vernal pools 
identified in the Recovery Plan for Vernal Pools of Southern California 
(recovery plan) (Service 1998a), including the vernal pools listed in 
appendices F and G.
    Our Response: We believe that this final revised critical habitat 
reflects the intent of the recovery plan (Service 1998a). The 1998 
recovery plan outlined four recovery criteria for the seven federally 
listed vernal pool species occurring in Southern California. In sum the 
recovery criteria state that: (1) Existing vernal pools and their 
associated watersheds that contain a federally-listed species should be 
secured for that specific supported species; (2) existing vernal pools 
and their associated watersheds need to be secured in a configuration 
that maintains habitat function and species viability (as determined by 
future research); (3) secured vernal pools be enhanced or restored such 
that population levels of existing species are stabilized or increased; 
and (4) population trends must be shown to be stable or increasing for 
a minimum of 10 years prior to reclassification (Service 1998a, pp. iv-
vi; pp. 62-64T). The intent of the recovery criteria is to identify, 
protect existing vernal pools, and, as necessary, restore degraded 
vernal pool habitat within the range of the San Diego fairy shrimp. 
Appendices F and G of the recovery plan identified vernal pool 
complexes needed to stabilize or reclassify the San Diego fairy shrimp 
to threatened status based on information available to the Service in 
1998. Since that time we have gained additional information about the 
relative significance and current status of vernal pool areas 
identified in appendices F and G, and we have identified several 
important areas that were discovered to be occupied by the San Diego 
fairy shrimp after the recovery plan was completed that are not 
analyzed in the recovery plan. The areas designated in this rule 
reflect our current assessment, based on the best available 
information, of habitat essential to the conservation of the species. 
Please see Table 1 and the Summary of Changes From Previously 
Designated Critical Habitat and 2003 Proposed Rule section below for a 
full discussion.
    Comment 19: One commenter stated that the San Diego fairy shrimp 
has already gone extinct in Los Angeles and Orange counties and that it 
is close to extinction in Riverside and Ventura counties. The commenter 
indicated that all remaining habitat throughout the species' range is 
essential to the species' survival and will require special management. 
The commenter stated that we should designate critical habitat in areas 
where new vernal pools have been found since the publication of the 
proposed rule in April 2003.
    Our Response: This commenter is incorrect about the historical 
distribution of the San Diego fairy shrimp. The best available 
scientific information indicates that the San Diego fairy shrimp has 
always been restricted to Orange and San Diego counties in the United 
States and to northwestern Baja California in Mexico. There is a single 
record of a female fairy shrimp in Santa Barbara County; however, the 
site where this fairy shrimp was collected from has been revisited and 
there is no corroborating evidence indicating San Diego fairy shrimp 
occupy this area. We believe this original report was an error. The San 
Diego fairy shrimp has never been reported from Los Angeles, Riverside, 
or Ventura counties. The San Diego fairy shrimp is still present in 
Orange County. The commenter did not provide specific information on 
the vernal pool complexes that they believe are essential to the 
conservation of the San Diego fairy shrimp, so we cannot address the 
reasons that these areas were not included in critical habitat. In 
addition, we have not evaluated new occurrences discovered after the 
2003 proposed rule to determine whether they are essential to the 
conservation of the species. In light of the fact that the commenter 
did not provide any specific data and that we have not evaluated new 
occurrences, it would not be appropriate to include these occurrences 
in the final rule. Section 4 of the Act allows for revision of any 
critical habitat designation as appropriate to evaluate and include new 
information through the full rulemaking process allowing for public 
comment on all proposed lands.

Policy and Procedures

    Comment 20: The ACOE requested clarification of the definition of 
``destruction or adverse modification'' of critical habitat.
    Our Response: Concerning the ACOE's request for a clarification of 
``destruction or adverse modification'' of critical habitat, we have 
revisited the regulatory definition of adverse modification in relation 
to the species' conservation. Recent decisions by the Fifth and Ninth 
Circuit Court of Appeals have invalidated our regulatory definition of 
``adverse modification'' at 50 CFR 402.02 (see Gifford Pinchot Task 
Force v. U.S. Fish and Wildlife Service, 378 F. 3d 1059 (9th Cir 2004) 
and Sierra Club v. U.S. Fish and Wildlife Service, 245 F.3d 434, 442F 
(5th Cir 2001)).

[[Page 70655]]

Consistent with the statutory provisions of the Act, we determine 
destruction or adverse modification on the basis of whether, with 
implementation of the proposed Federal action, the affected critical 
habitat would remain functional (or retain the current ability for the 
PCEs to be functionally established) to serve the intended conservation 
role for the species.
    Comment 21: One commenter stated an environmental impact statement 
(EIS) as defined under the National Environmental Policy Act (NEPA) 
should be written to address the potential significant impacts from the 
designation of San Diego fairy shrimp critical habitat.
    Our Response: It is our position that, outside the Tenth Circuit 
Court, we do not need to prepare environmental analyses as defined by 
NEPA in connection with designating critical habitat under the Act. We 
published a notice outlining our reasons for this determination in the 
Federal Register on October 25, 1983 (48 FR 49244). This position was 
upheld in the courts of the Ninth Circuit (Douglas County v. Babbitt, 
48 F.3d 1495 (9th Cir. Ore. 1995), cert. denied 116 S. Ct. 698 (1996)).
    Comment 22: Some commenters stated that it was unclear how critical 
habitat designation would affect private landowners.
    Our Response: The designation of critical habitat does not affect 
State, local, private or other non-Federal landowners unless a project 
requires Federal funding, permits, or authorization. Critical habitat 
does not affect land ownership or establish a refuge, preserve, or 
other special conservation area. It does not allow government or public 
access to private lands, and will not result in the closure of an area 
to all access or use. Please refer to the Effects of Critical Habitat 
Designation section below for more information.
    Comment 23: One commenter reiterated the Service's mandate to 
follow Secretarial Order 3206 and Executive Order 13175 regarding 
consultation and coordination with Tribal governments when deciding to 
propose critical habitat on Tribal lands.
    Our Response: Executive Order 13175 and Secretarial Order 3206 
direct the United States government, and specifically the Service, to 
establish regular and meaningful consultation and collaboration with 
Tribal officials in the development of Federal policies that have 
Tribal implications, to strengthen the government-to-government 
relationships with Tribes, and reduce the imposition of unfunded 
mandates upon Tribes. In the case of San Diego fairy shrimp, there are 
no known occurrences of this species on Tribal lands, nor is there any 
habitat essential for the conservation of the San Diego fairy shrimp on 
Tribal lands. Therefore, no critical habitat is designated for this 
species on Tribal lands.
    Comment 24: One commenter requested that we extend the comment 
period on the proposed designation and DEA.
    Our Response: Following the publication of the proposed critical 
habitat designation on April 22, 2003, we opened a 60-day public 
comment period that closed on June 23, 2003, and conducted outreach 
notifying affected elected officials, local jurisdictions, interest 
groups, and property owners. We conducted much of this outreach through 
legal notices in regional newspapers, telephone calls, letters, and 
news releases faxed and/or mailed to affected elected officials, local 
jurisdictions, and interest groups, and publication of the proposed 
designation and associated material on our Web site. We prepared a DEA 
of the proposed critical habitat designation, which we made available 
to the public on April 8, 2004 (68 FR 18516). The public comment period 
was reopened through May 10, 2004. During this comment period, two 
public hearings were held on April 29, 2004, from 1 p.m. to 3 p.m. and 
from 6 p.m. to 8 p.m. in Carlsbad, California. We provided notification 
of the DEA through telephone calls and letters and news releases faxed 
and/or mailed to affected elected officials, local jurisdictions, and 
interest groups. We also published the DEA and associated material on 
our Web site following the draft's release on April 8, 2004. A third 
period for public comment was opened from April 3, 2007, to May 3, 
2007. In addition, several public comment periods were held on our 
earlier proposed and final critical habitat rules, which are similar in 
many respects to the current proposed and final rule. Because of our 
obligation to meet the deadline established in settlement of litigation 
involving critical habitat designation for the San Diego fairy shrimp, 
we were not able to extend or open an additional public comment period.

Economic Analysis

    Comment 25: Some commenters stated, in general, that we should 
exclude areas from critical habitat due to the significant economic 
impacts associated with the designation of critical habitat.
    Our Response: We have not excluded any lands based on 
disproportionate economic impacts to a property. We have responded to 
comments that provided us with specific information and maps requesting 
economic exclusions below.
    Comment 26: One commenter stated that the placement of critical 
habitat over subunit 5D, especially the Otay Crossings Commerce Park 
project, will only divert limited staffing and financial resources 
towards addressing critical habitat issues instead of focusing on the 
successful implementation of the MSCP.
    Our Response: As discussed above in the response to Comment 15 we 
reanalyzed subunit 5D. We removed all areas in this subunit that do not 
contain features essential to the conservation of the San Diego fairy 
shrimp. However, a large portion of subunit 5D has been designated 
because it contains features in quantity and spatial arrangement 
essential to the conservation of the San Diego fairy shrimp, i.e., PCEs 
(Please see Criteria Used to Identify Critical Habitat section). Our 
economic analysis of subunit 5D did not indicate that the economic 
impacts in this subunit were substantially different from other areas 
included in critical habitat, therefore we have not excluded this area 
due to disproportionate economic impacts.
    Comment 27: One commenter stated that the Service's appreciation 
for, and earlier estimates of, the cost of the shrimp's listing have 
proven low. The commenter stated that delays in development associated 
with the breakdown of the MSCP/section 7 of the Act consultation 
process have been high. The commenter stated that the aftermath of the 
Southwest Center for Biological Diversity v. Bartel (CV 98-2234) 
decision has increased those costs. The commenter stated that a small 
property or project with a debt of just $10 million, for example, will 
see an additional cost in interest alone of approximately $50,000 per 
month of delay in the section 7 consultation process. Large projects 
with massive early expenditure on design, drawings, and the California 
Environmental Quality Act (CEQA) planning process, as well as sunk 
development costs will have incurred and will continue to incur 
extraordinary carrying costs too large to calculate except by the 
agency with access to all of the projects delayed and their sunk costs 
and carry costs. The commenter stated that the new rulemaking obliges 
the Service to list the projects, public and private, delayed by the 
ruling and the breakdown of the section 7 consultation process and use 
the costs to those projects as the minimum cost to date of the critical 
habitat designation while also calculating the additional cost of going

[[Page 70656]]

forward. The commenter stated that the economic analysis should also 
include a reasonable analysis of the impact of a critical habitat 
designation on that land not yet under development but newly burdened 
with this designation. Another commenter echoed these comments and 
stated that the result of a critical habitat designation would cause 
land owners to enter into a section 7 consultation with the Service. 
The commenter stated that this consultation process would lengthen the 
time and increase the cost to process projects. The commenter added 
that adding to the regulatory burden does not make sense since the MSCP 
was created to expedite the processing of projects within the County 
while providing for the long-term survival of fairy shrimp within the 
preserve lands.
    Our Response: The draft economic analysis (DEA) addresses potential 
costs that a private land development may incur from the designation of 
critical habitat. It is not necessarily the case that delays for 
development projects will result from the designation of critical 
habitat. The need to complete section 7 consultations in and of itself 
does not automatically delay private development projects; these 
consultations can generally be coordinated with baseline land use 
regulatory processes and do not necessarily increase the time to obtain 
approvals. The DEA identified projects that were currently being 
processed (i.e., those that are reasonably foreseeable) or had been 
recently completed as the most likely projects to be delayed by the 
designation of critical habitat. The DEA analyzed the cost that these 
projects may incur and incorporated this information into the analysis. 
Please see the section Time-Delay Costs of the DEA (Economic and 
Planning Systems, Inc. 2004, pp. 53-55). Further, the economic costs 
associated with development delays resulting from the Southwest Center 
for Biological Diversity v. Bartel (CV 98-2234) decision are not the 
result of the existing critical habitat designation or of the revised 
critical habitat designation. Rather they are the result of the court's 
determination that there are deficiencies in the City of San Diego 
subarea plan under the MSCP and in the Service's decision to issue an 
incidental take permit based on the plan. In the aftermath of SWANCC 
and Rapanos it is not clear to what extent projects affected by the 
Southwest Center for Biological Diversity v. Bartel (CV 98-2234) 
decision are likely to have a Federal nexus that would trigger 
consultation under section 7 of the Act and an examination of the 
projects' impacts on critical habitat.
    Comment 28: One commenter stated that the DEA was flawed because it 
used existing HCPs and INRMPs that are already in place as a baseline 
for the economic analysis. The commenter indicated that the use of 
baseline conditions underestimates the economic cost of the 
designation. The commenter also stated that the DEA fails to take into 
account the impact of the designation of critical habitat on the 
housing market or on transportation projects.
    Our Response: The economic analysis used baseline conditions and 
regulations that are already in place for the economic analysis because 
the designation of critical habitat will not alter existing conditions. 
In areas that do not have existing HCPs or other regulations that 
provide for the regulation of San Diego fairy shrimp habitat, the 
economic analysis highlights the possible costs that may be due to the 
designation of critical habitat. We believe that the economic analysis 
did address both impacts on the housing market and transportation 
projects by analyzing the impacts of critical habitat on private land 
development and on road construction and maintenance.
    Comment 29: Commenters stated that the DEA should use case studies 
rather than cost estimates or projections and that the economic 
analysis should be released to the public prior to the final 
designation of critical habitat. Other commenters stated that the 
economic analysis should be completed prior to proposing critical 
habitat.
    Our Response: We agree that cost estimates derived from real 
examples are preferable. To the extent possible, our economic analysis 
is derived from actual cost information collected in the preparation of 
the economic analysis and during the comment periods. The DEA was made 
available for public review and comment prior to the final designation 
of critical habitat. Under 50 CFR 424.19, we are not required to 
consider the probable economic impacts of designating a particular area 
as critical habitat until after critical habitat is proposed. There 
were two comment periods for the public to provide input on the DEA, 
one opened on April 8, 2004, and closed May 10, 2004 (69 FR 18516), the 
other opened on April 3, 2007, and closed May 3, 2007. There were also 
public hearings on April 29, 2004, from 1 p.m. to 3 p.m. and from 6 
p.m. to 8 p.m. in Carlsbad, California, to provide comments on the DEA. 
An additional comment period was opened from April 3, 2007, to May 3, 
2007, on the DEA and proposed rule. The final designation takes into 
consideration the findings of the DEA, and comments and information 
submitted to us regarding the DEA.

Comments From State Agencies

    Comment 30: California Department of Fish and Game (CDFG) supported 
the exclusion of Natural Communities Conservation Plans (NCCP)/HCPs 
that include the San Diego fairy shrimp as a covered species. 
Additionally, CDFG also requested that land designated as critical 
habitat be automatically removed from such designation upon approval of 
an NCCP.
    Our Response: Although we agree with CDFG that an approved NCCP/HCP 
likely provides a conservation benefit to the species covered by that 
particular plan and should be considered for exclusion from critical 
habitat designation under section 4(b)(2) of the Act, we are not able 
to automatically remove designated critical habitat from areas once an 
NCCP/HCP is approved. In order to revise a critical habitat designation 
to take into consideration a completed NCCP or HCP, we are required 
under sections 4(b)(5) and 4(b)(6) of the Act to follow the appropriate 
rulemaking process. If an NCCP or HCP that includes the San Diego fairy 
shrimp as a covered species is approved subsequent to the designation 
of critical habitat for the species, we can reassess the critical 
habitat boundaries and revise such designation through the rulemaking 
process, consistent with available funding and program priorities.
    Comment 31: CDFG requested that State-owned land on Del Mar Mesa be 
excluded from the revised final designation of critical habitat.
    Our