Rule2021-24365

Endangered and Threatened Wildlife and Plants; Revised Designation of Critical Habitat for the Northern Spotted Owl

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
November 10, 2021
Effective
December 10, 2021

Issuing agencies

Interior DepartmentFish and Wildlife Service

Abstract

We, the U.S. Fish and Wildlife Service (Service), revise the designation of critical habitat for the northern spotted owl (Strix occidentalis caurina) under the Endangered Species Act of 1973, as amended (ESA or Act), by withdrawing the January 15, 2021, final rule that would have been effective December 15, 2021, and which would have excluded approximately 3.4 million acres (1.4 million hectares) of designated critical habitat for the northern spotted owl (January Exclusions Rule); and instead as we proposed on July 20, 2021, we now exclude approximately 204,294 acres (82,675 hectares) in Benton, Clackamas, Coos, Curry, Douglas, Jackson, Josephine, Klamath, Lane, Lincoln, Multnomah, Polk, Tillamook, Washington, and Yamhill Counties, Oregon, under section 4(b)(2) of the Act.

Full Text

<html>
<head>
<title>Federal Register, Volume 86 Issue 215 (Wednesday, November 10, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 215 (Wednesday, November 10, 2021)]
[Rules and Regulations]
[Pages 62606-62666]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24365]



[[Page 62605]]

Vol. 86

Wednesday,

No. 215

November 10, 2021

Part II





Department of the Interior





-----------------------------------------------------------------------





Fish and Wildlife Service





-----------------------------------------------------------------------





50 CFR Part 17





Endangered and Threatened Wildlife and Plants; Revised Designation of 
Critical Habitat for the Northern Spotted Owl; Final Rule

Federal Register / Vol. 86 , No. 215 / Wednesday, November 10, 2021 / 
Rules and Regulations

[[Page 62606]]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

50 CFR Part 17

[Docket No. FWS-R1-ES-2020-0050; FF09E21000 FXES1111090FEDR 223]
RIN 1018-BF01


Endangered and Threatened Wildlife and Plants; Revised 
Designation of Critical Habitat for the Northern Spotted Owl

AGENCY: Fish and Wildlife Service, Interior.

ACTION: Final rule; withdrawal and revision.

-----------------------------------------------------------------------

SUMMARY: We, the U.S. Fish and Wildlife Service (Service), revise the 
designation of critical habitat for the northern spotted owl (Strix 
occidentalis caurina) under the Endangered Species Act of 1973, as 
amended (ESA or Act), by withdrawing the January 15, 2021, final rule 
that would have been effective December 15, 2021, and which would have 
excluded approximately 3.4 million acres (1.4 million hectares) of 
designated critical habitat for the northern spotted owl (January 
Exclusions Rule); and instead as we proposed on July 20, 2021, we now 
exclude approximately 204,294 acres (82,675 hectares) in Benton, 
Clackamas, Coos, Curry, Douglas, Jackson, Josephine, Klamath, Lane, 
Lincoln, Multnomah, Polk, Tillamook, Washington, and Yamhill Counties, 
Oregon, under section 4(b)(2) of the Act.

DATES: As of November 10, 2021, FWS is withdrawing the final rule 
published January 15, 2021, at 86 FR 4820, delayed on March 1, 2021, at 
86 FR 11892, and further delayed on April 30, 2021 at 86 FR 22876. This 
rule is effective December 10, 2021.

ADDRESSES: This final rule is available on the internet at <a href="https://www.regulations.gov">https://www.regulations.gov</a> under Docket No. FWS-R1-ES-2020-0050 and at <a href="https://www.fws.gov/oregonfwo">https://www.fws.gov/oregonfwo</a>.
    <bullet> Comments and materials we received, as well as supporting 
documentation we used in preparing this rule, are available for public 
inspection at <a href="https://www.regulations.gov">https://www.regulations.gov</a> under Docket No. FWS-R1-ES-
2020-0050.
    <bullet> The coordinates from which the Service generated the maps 
are included in the decision file for the rulemaking and are available 
at <a href="https://www.regulations.gov">https://www.regulations.gov</a> at Docket No. FWS-R1-ES-2020-0050 and at 
<a href="https://www.fws.gov/oregonfwo">https://www.fws.gov/oregonfwo</a>.
    <bullet> The Geographic Information System data reflecting the 
revised critical habitat units can be downloaded at <a href="https://ecos.fws.gov/ecp/species/1123#crithab">https://ecos.fws.gov/ecp/species/1123#crithab</a> under the heading Critical 
Habitat Spatial Extents.

FOR FURTHER INFORMATION CONTACT: Paul Henson, Ph.D., State Supervisor, 
U.S. Fish and Wildlife Service, Oregon Fish and Wildlife Office, 2600 
SE 98th Avenue, Portland, OR 97266; telephone 503-231-6179. Persons who 
use a telecommunications device for the deaf (TDD) may call the Federal 
Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION:

Executive Summary

    Why we need to publish a rule. We need to publish a rule in order 
to exclude areas from northern spotted owl designated critical habitat 
under section 4(b)(2) of the Act.
    What this rule does. This rule revises the designation of critical 
habitat for the northern spotted owl by withdrawing the exclusion of 
approximately 3.4 million acres as set forth in the January Exclusions 
Rule, and excluding instead approximately 204,294 acres (82,675 
hectares).
    Basis for this rule. Under section 4(b)(2) of the Act, the 
Secretary may exclude an area from critical habitat if she determines 
that the benefits of such exclusion outweigh the benefits of specifying 
such area as part of the critical habitat, unless she determines, based 
on the best scientific data available, that the failure to designate 
such area as critical habitat will result in the extinction of the 
species. This revision to critical habitat excludes 204,294 acres 
(82,675 hectares) in Benton, Clackamas, Coos, Curry, Douglas, Jackson, 
Josephine, Klamath, Lane, Lincoln, Multnomah, Polk, Tillamook, 
Washington, and Yamhill Counties, Oregon, under section 4(b)(2) of the 
Act.
    The Service is excluding lands that are within the Harvest Land 
Base land-use allocation described by the U.S. Department of the 
Interior Bureau of Land Management (BLM) in two recently revised 
resource management plans (RMPs) for areas it manages in Oregon: The 
Northwestern Oregon and Coastal Oregon Record of Decision and Resource 
Management Plan (BLM 2016a) and the Southwestern Oregon Record of 
Decision and Resource Management Plan (BLM 2016b). The BLM consulted 
with the Service on the effects of those RMPs, and in our resulting 
Biological Opinion, we found the BLM's proposed harvest over time of 
those areas allocated to the Harvest Land Base would not result in 
destruction or adverse modification of northern spotted owl critical 
habitat (FWS 2016, pp. 626-703). We are also excluding lands that were 
previously managed by the BLM under the RMPs but were subsequently 
transferred in trust to certain Indian Tribes pursuant to Federal 
legislation.

Previous Federal Actions

    On December 4, 2012, we published in the Federal Register (77 FR 
71876) a final rule designating revised critical habitat for the 
northern spotted owl. For additional information on previous Federal 
actions concerning the northern spotted owl, refer to that December 4, 
2012, final rule.
    In 2013, the December 4, 2012, revised critical habitat designation 
was challenged in court in Carpenters Industrial Council et al. v. 
Bernhardt et al., No. 13-361-RJL (D.D.C) (now retitled Pacific 
Northwest Regional Council of Carpenters et al. v. Bernhardt et al. 
with the substitution of named parties). In 2015, the district court 
ruled that the plaintiffs lacked standing. The D.C. Circuit Court of 
Appeals reversed and remanded, and the case remained pending before the 
district court.
    On April 13, 2020, we entered into a stipulated settlement 
agreement resolving the litigation. The settlement agreement was 
approved and ordered by the court on April 26, 2020, and the case 
dismissed. Under the terms of the settlement agreement, the Service 
agreed to submit a proposed revised critical habitat rule to the 
Federal Register that identified proposed exclusions under section 
4(b)(2) of the Act by July 15, 2020, and to submit to the Federal 
Register a final revised critical habitat rule on or before December 
23, 2020, or withdraw the proposed rule by that date if we determined 
not to exclude any areas from the designation under section 4(b)(2) of 
the Act. We delivered a proposed rule to the Federal Register on July 
15, 2020, which was published on August 11, 2020 (85 FR 48487), 
proposing to exclude 204,653 acres (82,820 hectares) within 15 counties 
in Oregon under section 4(b)(2) of the Act. We opened a 60-day comment 
period on the August 11, 2020, proposed rule, which closed on October 
13, 2020. On January 15, 2021, we published in the Federal Register the 
January Exclusions Rule (86 FR 4820), excluding approximately 3,472,064 
acres (1,405,094 hectares) within 45 counties in Washington, Oregon, 
and California under section 4(b)(2) of the Act. Our August 11, 2020, 
proposed rule (85 FR 48487) and the January Exclusions Rule met the 
stipulations of the settlement agreement.

[[Page 62607]]

    The initial effective date of the January Exclusions Rule was March 
16, 2021. On March 1, 2021, we extended the effective date of the 
January Exclusions Rule to April 30, 2021 (86 FR 11892). At that time, 
we also opened a 30-day comment period, inviting comments on the impact 
of the delay of the effective date of the January Exclusions Rule, as 
well as comments on issues of fact, law, and policy raised by that 
final rule. After considering comments received in response to our 
March 1, 2021, final rule delaying the effective date, on April 30, 
2021, we again extended the effective date of the January Exclusions 
Rule to December 15, 2021 (86 FR 22876).
    On July 20, 2021, we published in the Federal Register a proposed 
revised critical habitat rule in which we proposed to withdraw the 
January Exclusions Rule, and to exclude 204,797 acres (82,879 hectares) 
within 15 counties in Oregon (86 FR 38246). The lands proposed for 
exclusion are the same lands we proposed for exclusion on August 11, 
2020, with minor corrections in the number of acres.
    For the convenience of the reader, the list below provides some 
Federal Register citations of prior rulemaking documents pertaining to 
the northern spotted owl. This list is not a comprehensive list of all 
pertinent prior rulemaking documents; instead, it contains only those 
documents that are referenced frequently in this final rule:

<bullet> Final rule to revise the designation of critical habitat: 
December 4, 2012, 77 FR 71876
<bullet> Proposed rule to revise the designation of critical habitat: 
August 11, 2020, 85 FR 48487
<bullet> Final rule to revise the designation of critical habitat: 
January 15, 2021, 86 FR 4820 (January Exclusions Rule)
<bullet> Final rule to delay the effective date of the January 
Exclusions Rule and to request comments: March 1, 2021, 86 FR 11892
<bullet> Final rule to further delay the effective date of the January 
Exclusions Rule: April 30, 2021, 86 FR 22876
<bullet> Proposed rule to revise the designation of critical habitat: 
July 20, 2021, 86 FR 38246

Summary of Factors Affecting the Northern Spotted Owl

    Habitat loss was the primary factor leading to the listing of the 
northern spotted owl as a threatened subspecies in 1990 (55 FR 16114, 
June 26, 1990), and it continues to be a stressor on the subspecies due 
to the lag effects of past habitat loss, continued timber harvest, 
wildfire, and a minor amount from insect and forest disease outbreaks. 
The most recent rangewide northern spotted owl demographic study 
(Franklin et al. 2021, entire) found that nonnative barred owls are 
currently the stressor with the largest negative impact on northern 
spotted owls through competition for resources. The study emphasized 
the importance of addressing barred owl management and also the 
importance of maintaining habitat across the range of the northern 
spotted owl regardless of occupancy to provide areas for recolonization 
and dispersal (Franklin et al. 2021, p. 18). The study also found a 
significant rate of population decline in northern spotted owls, a rate 
of 6 to 9 percent annually on 6 demographic study areas, and 2 to 5 
percent annually on 5 study areas. Populations dropped to or below 35 
percent of historical population numbers on 7 of the study areas, and 
to or below 50 percent on the remaining 3 areas over a 22-year period 
(1995-2017).
    On non-Federal lands, State regulatory mechanisms have not 
prevented the continued decline of nesting, roosting and foraging 
habitat of the northern spotted owl; the amount of northern spotted owl 
habitat on these lands has decreased considerably over the past two 
decades, including in geographic areas where Federal lands are lacking. 
On Federal lands, the Northwest Forest Plan has reduced habitat loss 
and allowed for the regrowth of northern spotted owl habitat; however, 
the combined effects of climate change, high-severity wildfire, and 
past management practices are changing forest ecosystem processes and 
dynamics.

Summary of Comments and Recommendations

    In our July 20, 2021, proposed rule (86 FR 38246), we requested 
that all interested parties submit written comments by September 20, 
2021. We also contacted appropriate Federal, State, and local agencies, 
and other interested parties and invited them to comment on the 
proposed rule. A newspaper notice inviting general public comment was 
published in The Oregonian on July 25, 2021, in the Eureka Times-
Standard on July 30, 2021, and in The Olympian on August 6, 2021. We 
did not receive any requests for a public hearing. We noted in the 
proposed rule that comments previously submitted in response to our 
August 11, 2020, proposed revision to critical habitat for the northern 
spotted owl (85 FR 48487) did not need to be resubmitted, as we would 
consider them in producing this final rule. We also noted that parties 
who wanted comments they submitted in response to our March 1, 2021, 
rule extending the effective date of the January Exclusions Rule 
considered in this final rule should resubmit their comments.
    During the comment period, we received 48 new public comment 
submissions addressing the proposed withdrawal of the January 
Exclusions Rule and revised critical habitat designation, in addition 
to the 572 public comments submitted in response to our original August 
11, 2020 proposal to exclude approximately 204,653 acres (82,820 
hectares). In addition, one commenter resubmitted their comments in 
response to our March 1, 2021, rule. Among the submissions on the July 
20, 2021, proposed rule were letters from organizations signed by 
thousands of individuals expressing general support for our proposed 
rule. Many comments were nonsubstantive in nature, expressing either 
general support for or opposition to our proposal to withdraw the 
January Exclusions Rule and exclude 204,797 acres (82,879 hectares), 
with no supporting information or analysis, or expressing opinions 
regarding topics not covered within the proposed revised critical 
habitat rule. We also received many detailed substantive comments with 
specific rationale for support of or opposition to specific portions of 
the proposed revised rule.
    Below, we summarize and respond to: The substantive comments on the 
July 20, 2021, proposed rule that were received by the September 20, 
2021, deadline; substantive comments we received in response to the 
August 11, 2020, proposed rule; and resubmitted comments in response to 
our March 1, 2021, rule. Additionally, we provide explanations when our 
responses to comments received on our August 11, 2020, proposed rule 
differ substantially from responses we provided to those same comments 
in the January Exclusions Rule. Comments received were grouped into 
general categories and are addressed in the following summary.

Comments on the Withdrawal of the January Exclusions Rule

    In order to facilitate the ability to cross-reference our previous 
responses to comments in the January Exclusions Rule, new and 
resubmitted comments received by September 21, 2021, on the proposed 
withdrawal of the January Exclusions Rule and the March 1, 2021, rule 
delaying the effective date of the January Exclusions Rule until April 
30, 2021, are identified alphabetically; comments received on the 
proposed exclusions and other issues received in

[[Page 62608]]

response to both the August 11, 2020, proposed rule and new comments 
received for the July 20, 2021, proposed rule are identified 
numerically and follow the same relevant grouping of issues as in the 
January Exclusions Rule. We did not receive comments concerning the 
proposed withdrawal of the January Exclusions Rule from Federal 
agencies, the States, or Tribes.

Comments From Counties

    Jackson County (Oregon) submitted a comment letter expressing their 
support and concurrence with the comment letter submitted by the 
Association of O&C Counties (AOCC); see Comment (B) for a summary of 
those comments.
    Douglas County (Oregon) submitted a comment letter incorporating 
the American Forest Resource Council (AFRC)'s September 20, 2021, 
comment letter by reference and provided additional comments urging the 
Service not to rescind the January Exclusions Rule. Issues raised by 
Douglas County are incorporated and grouped with similar comments 
within this rule.
    Harney County (Oregon) submitted a comment letter urging the 
Service not to rescind the January Exclusions Rule. Issues raised by 
Harney County are incorporated and grouped with similar comments within 
this rule.
    Lewis and Skamania Counties (Washington) submitted a comment letter 
incorporating the September 20, 2021, comment letter of the AFRC by 
reference and provided other comments that are incorporated and grouped 
with similar comments within this rule.
    Klickitat County (Washington) submitted a comment letter 
incorporating Lewis and Skamania Counties' comment letter by reference 
and provided other comments that are incorporated and grouped with 
similar comments within this rule.

Public Comments

    Comment (A): Commenters that opposed any exclusions from critical 
habitat stated that retaining and expanding critical habitat and 
conserving mature forests will provide significant economic benefits to 
communities by providing ecosystem services such as: Clean water, 
climate stability, fire resilience, fish and wildlife, recreation, and 
other services that serve as a stabilizing force for community 
development.
    Our response: While the designation of critical habitat for the 
northern spotted owl does not, in and of itself, change the land-use 
allocation for the areas designated (which is ultimately the decision 
of the entity managing the land, such as the BLM), we agree that in 
addition to its benefits for the northern spotted owl, conserving 
mature forests may provide economic benefits to communities through the 
ecosystem services described by the commenter. Although the final 
economic analysis (FEA) of the critical habitat designation for the 
northern spotted owl (IEc 2012) did not quantify these economic 
benefits, it qualitatively described the ancillary benefits of 
conservation measures that may be implemented to avoid the destruction 
or adverse modification of critical habitat. These benefits include 
public safety benefits, such as timber management practices that reduce 
the threat of catastrophic wildfire, drought, and insect damage; 
improved water quality that may reduce water treatment costs and 
provide human or ecological health benefits; aesthetic benefits of a 
more natural forest landscape that results in increased recreational 
use or increases the value of neighboring properties; and carbon 
storage that may ameliorate the impacts of climate change.
    Comment (B): The AOCC, representing the interests of counties in 
western Oregon, as well as other commenters, submitted comments 
opposing the withdrawal of the January Exclusions Rule, citing the 
following rationales:
    (i): The AOCC and others commented that the 2012 critical habitat 
designation negatively impacted the ability of BLM to manage certain 
former railroad grant lands in Oregon revested to the United States in 
1916 (O&C lands) for their statutory purposes under the Oregon and 
California Revested Lands Sustained Yield Management Act of 1937, 
Public Law 75-405 (O&C Act) and reduced timber harvest and associated 
receipts shared with counties. They asserted that the 2012 designation 
caused BLM to manage these lands under their revised RMPs for the 
benefit of the northern spotted owl instead.
    Our response: The BLM developed its 2016 RMPs considering a variety 
of authorities and requirements, including the O&C Act, which addresses 
the management of O&C lands revested to the Federal Government under 
the Chamberlin-Ferris Act of 1916 (39 Stat. 218) and other authorities. 
As discussed further in response to Comment 12, we acknowledge that 
there is ongoing litigation regarding BLM's authorities and obligations 
under the O&C Act and the Endangered Species Act. Once that litigation 
is finally resolved, BLM will have to determine what, if any, changes 
to make to its management of the O&C lands under applicable law. Until 
that time, however, the BLM will, where appropriate, utilize its 
authorities in furtherance of the purposes of the Endangered Species 
Act. See also our response to Comment (6). See our response to Comments 
(21) and (22) for a discussion on the economic impacts of the 
designation on timber harvest.
    (ii): The AOCC commented that the designation of critical habitat 
on O&C lands is contrary to recent rulings that recognize the statutory 
requirement that timber on O&C lands is to be ``sold, cut and removed'' 
according to sustained yield principles and cannot be allocated to 
reserves, and that section 7 consultation requirements under the Act do 
not apply to the nondiscretionary obligation of BLM to manage these 
lands under the principles of sustained yield.
    Our response: See our responses to Comments (6), (12), and (25b) 
below.
    (iii): The AOCC commented that the 2012 critical habitat 
designation was flawed in that it did not identify or ``actually'' map 
habitat and that the methods used resulted in vast areas being 
designated as critical habitat that do not currently have the 
attributes of northern spotted owl habitat and therefore do not meet 
the statutory requirements for designation as critical habitat.
    Our response: This and similar comments that directly address 
concerns about our final rule designating critical habitat in 2012 were 
raised and addressed in the rulemaking for the 2012 rule, and we refer 
to our responses to such issues in that rulemaking, see e.g., Public 
Comments on the Modeling Process at 77 FR 71876, December 4, 2012; p. 
72020. We address here only those comments relevant to the revisions 
proposed in July 20, 2021.
    (iv): The AOCC commented that the designation of critical habitat 
in 2012 created preserves that prevent sustained yield management and 
that actively managing critical habitat to support species recovery is 
not the equivalent of sustained yield management under the O&C Act, 
further citing the court ruling in Headwaters, Inc. v. BLM, Medford 
Dist., 914 F.2d 1174 (9th Cir. 1990) holding that withdrawing lands 
from sustained yield timber production for the benefit of wildlife is 
not a use recognized in the O&C Act and is inconsistent with sustained 
yield management. On this basis, the commenter seeks additional 
exclusions from the designated critical habitat.
    Our response: Critical habitat designations do not establish 
specific land-management standards or prescriptions, nor do 
designations affect land ownership or establish a refuge, wilderness, 
reserve, preserve, sanctuary, or any other conservation area where no 
active land management occurs. See our

[[Page 62609]]

responses to Comments (6), (12), and (25b) below.
    (v): The AOCC commented that ``creative sustained yield 
management'' can contribute substantially to the habitat needs of the 
northern spotted owl without the limitations imposed by a critical 
habitat designation and that sustained yield management to meet both 
the subspecies' needs and the O&C Act requirements has not been 
considered in BLM and U.S. Department of Agriculture, Forest Service 
(USFS) management plans, northern spotted owl recovery plans, and 
critical habitat designations. They provided examples of sustained 
yield strategies that could be considered should the BLM be required to 
revise their RMPs due to a pending court ruling and suggested that 
removing critical habitat is a necessary first step.
    Our response: As indicated by the comment, complying with and 
achieving the goals of the O&C Act and the Endangered Species Act can 
be an extraordinarily complicated task in the forest management arena. 
The BLM and USFS are responsible for managing O& C lands, and they do 
so by adopting land management plans that provide guidance and 
direction for subsequent management actions on those lands. Recovery 
plans under the Endangered Species Act provide recommendations for 
management actions that meet the recovery needs of listed species; they 
are not intended to guide compliance with other statutory requirements. 
Critical habitat designations, similarly, are focused on the needs of 
the species but take economic and other impacts into consideration.
    The Service expressly considered the role of the O&C lands when 
revising critical habitat in 2012, but did not consider excluding them 
at that time because we concluded they were essential to the 
conservation of the subspecies (77 FR 71876, December 4, 2012; p. 
72007).
    We expressly consider in this rule excluding the O&C lands (outside 
of the BLM's Harvest Land Base lands) from the designation based on 
requests from the commenter and others, but for the reasons discussed 
in our weighing analysis, have determined not to do so (see 
Consideration of Impacts Under Section 4(b)(2) of the Act).
    We note, however, that the BLM and USFS have proposed harvests from 
O&C lands within designated critical habitat, consulting with the 
Service on those actions. To date, we have reviewed such proposals on 
thousands of acres and have not found that the proposals result in the 
destruction or adverse modification of that habitat under the Act.
    The critical habitat designation benefits the northern spotted owl 
as a landscape-scale conservation strategy that identifies areas on the 
landscape that may require special management considerations or 
protection. In addition, the designation informs management practices 
that contribute to the recovery needs of the subspecies. In both the 
critical habitat designation, and in site-specific consultations, the 
Service has supported active forest management, where appropriate, to 
provide for some timber harvest while also conserving habitat for the 
northern spotted owl and reducing the risk of wildfire.
    (vi): The AOCC commented that all O&C lands should be excluded from 
the critical habitat designation because the benefits of exclusion 
outweigh the costs and that there is no benefit to including these 
lands in the designation because the O&C Act ``mandates for sustained 
yield production control over the ESA section 7(a)(2) consultation.'' 
Additionally, they commented that the designation has had significant 
adverse economic impacts on the counties, affecting their ability to 
provide public services and has resulted in mill closures and job 
losses.
    Our response: As described elsewhere in this document, some timber 
harvest does occur within critical habitat, and total annual timber 
harvest levels on Federal lands in the range of the northern spotted 
owl have actually increased since the revision of critical habitat in 
2012; see our response to Comments (21b and 25a). See also our 
responses to Comments (6 and 25) concerning O&C lands and our weighing 
of the benefits of including O&C lands in the critical habitat 
designation versus excluding them in Consideration of Impacts Under 
Section 4(b)(2) of the Act.
    (vii): The AOCC commented that the economic impact of the critical 
habitat designation has not been properly evaluated by the Service and 
that these impacts are not solely attributable to the listing decision.
    Our response: See our response to Comment (20) below concerning our 
review of the FEA (IEc 2012) and our regulation on how economic 
analyses are conducted.
    Comment (C): The AFRC submitted comments in support of the January 
Exclusions Rule and expressed support for the Service's proposal to 
exclude the BLM's Harvest Land Base lands and lands transferred in 
trust to the Confederated Tribes of Coos, Lower Umpqua, and Siuslaw 
Indians (CTCLUSI) and the Cow Creek Band of Umpqua Tribe of Indians 
(CCBUTI). The AFRC resubmitted comments they previously provided on our 
2007, 2008, and 2012 critical habitat rules. We previously responded to 
those comments in our final respective critical habitat rules; see 73 
FR 47326, August 13, 2008, and 77 FR 71876, December 4, 2012. The 
AFRC's comments on our August 11, 2020, proposed rule (85 FR 48487), 
our March 1, 2021, rule delaying the effective date of the January 
Exclusions Rule (86 FR 11892), and our July 20, 2021, proposed rule (86 
FR 38246) are summarized below. Comments submitted by AFRC that were 
similar to comments received on the August 11, 2020, proposed rule have 
been incorporated into the comment sections following this section. 
Several counties incorporated AFRC's comments by reference. In some 
instances, other commenters submitted comments similar to the comments 
submitted by AFRC; we include those comments in the following 
summarized comments.
    (i): The AFRC commented that the August 11, 2020, proposed revised 
critical habitat rule gave notice to the public that additional areas 
may be excluded in the final rule and that the Service (and Secretary) 
preserved broad discretion to make additional exclusions such that 
there was no ``logical outgrowth'' problem in the change from the 
proposed to final exclusions in the January Exclusions Rule.
    Our response: We requested comments in our August 11, 2020, 
proposed rule on the following: Additional areas, including Federal 
lands and specifically National Forest System lands, that should be 
considered for exclusion under section 4(b)(2) of the Act and any 
probable economic, national security, or other relevant impacts of 
excluding those areas. We also requested comments on any significant 
new information or analysis concerning economic impacts that we should 
consider in the balancing of the benefits of inclusion versus the 
benefits of exclusion in the final determination.
    While our request indicated that we might consider additional 
exclusions, the scale of the final exclusions was much larger and 
broader than what the public could reasonably anticipate. In our 
proposed rule, we identified 204,653 acres (82,675 hectares) across 15 
counties and 26 critical habitat subunits in Oregon for potential 
exclusion; the January Exclusions Rule increased the acres excluded by 
nearly 17-fold. The final rule included extensive areas that were not 
mentioned in the proposed rule, and for which no

[[Page 62610]]

details were provided in the January Exclusions Rule, within the States 
of Washington and California, 45 counties across the range, and 55 
critical habitat subunits across the designation.
    In response to our March 1, 2021, rule delaying the effective date 
of the January Exclusions Rule, we received many comments that the 
January Exclusions Rule was not a logical outgrowth of the August 11, 
2020, proposed rule, including comments from natural resource agencies 
in Washington and California opposing the exclusions and expressing 
that they were not aware that exclusions were being considered in their 
respective States. Additionally, the Washington Department of Fish and 
Wildlife comments expressed surprise at the 765,175 acres (309,655 
hectares) excluded in their State under the January Exclusions Rule. 
Further, the California Department of Fish and Wildlife commented in 
response to the March 1, 2021, rule that the January Exclusions Rule 
did not identify lands excluded in their State with enough specificity 
to provide a meaningful analysis and comment. Conservation groups and 
other members of the public commented in response to the March 1, 2021, 
rule that they were not given the opportunity to present arguments and 
facts contrary to the vast increase in exclusions as presented in the 
January Exclusions Rule.
    Additionally, the January Exclusions Rule also included new 
rationales for the exclusions that were not identified in the August 
11, 2020, proposed revised critical habitat rule (85 FR 48487). These 
included generalized assumptions about the economic impact of both the 
listing of the northern spotted owl and the subsequent designation of 
areas as critical habitat; the stability of local economies and 
protection of the local custom and culture of counties; the presumption 
that exclusions would increase timber harvest and result in longer 
cycles between harvest; that timber harvest designs resulting from the 
exclusions would benefit the northern spotted owl, and that the 
increased harvest would reduce the risk of wildfire; and that northern 
spotted owls may use areas that have been harvested if some forest 
structure was retained. The public did not have an opportunity to 
review or comment on these new rationales.
    Further, the January Exclusions Rule failed to reconcile a change 
in our prior findings regarding areas managed under the O&C Act. In our 
2012 rule revising the critical habitat designation for the owl, we 
found that areas managed under the O&C Act were essential to the 
conservation of the subspecies and that not including some of these 
lands in the critical habitat network resulted in a significant 
increase in the risk of extinction. Commenters stated that the 
exclusion of these lands in the January Exclusions Rule also conflicted 
with our December 15, 2020, finding that the northern spotted owl 
warrants reclassification to endangered status given the exacerbation 
of the threats it faces. We maintain that the public should have had an 
opportunity to comment on the expanded critical habitat exclusions made 
in January in light of the information included in the December 15, 
2020, finding and supporting species report (85 FR 81144, FWS 2020, p. 
83), which were published just 3 weeks before the January Exclusions 
Rule.
    In summary, it is clear from the public comment record that not 
being afforded an opportunity to review and provide comment on the much 
larger and broader areas excluded and the rationale for those 
exclusions, particularly in light of the December 15, 2020, finding 
that the northern spotted owl warranted reclassification to endangered 
status, was considered by the public a lack of transparency and 
inability to participate in the public process as required under the 
Administrative Procedure Act. While our proposed August 11, 2020, rule 
and exclusions did signal the potential that the final rule could be 
different, on reconsideration we find that it is more prudent and 
transparent to conclude that an updated proposed rule and an additional 
opportunity to comment would be warranted were we to seek to put the 
January Exclusions Rule into effect.
    (ii): The AFRC commented that the Service's modeling of extinction 
risk in the 2012 critical habitat designation discounted millions of 
acres of potentially suitable habitat in national parks and designated 
wilderness that are not included in the designation and assert that our 
section 4(b)(2) analysis is flawed because the benefits these areas 
provide was not considered. The AFRC further commented that our 
assertion that these areas are relatively small and widely dispersed 
across the range of the northern spotted owl is inaccurate as these 
lands cover over 7 million acres (2.8 million hectares).
    Our response: We included Congressionally Reserved Lands (e.g., 
designated wilderness and national parks) in our modeling analyses of 
the critical habitat network and extinction risk based on the 
assumption that habitat quality in these areas would be retained 
whether they were designated as critical habitat or not (Dunk et al. 
2012, pp. 19, 57). Our section 4(b)(2) analysis in the 2012 critical 
habitat rule considered the benefits of including these lands within 
the critical habitat designation and found that these areas are 
essential to the conservation of the northern spotted owl. However, 
unlike other Federal and State lands that have multiple use mandates 
that include commercial harvest of timber in the range of the spotted 
owl, such as National Forests, State Forests, and public-domain forests 
managed by the BLM, these reserved natural areas are unlikely to have 
uses that are incompatible with the purposes of critical habitat 
because the primary habitat threat to spotted owl critical habitat--
commercial timber harvest--is generally prohibited on these lands. 
These natural areas are managed under explicit Federal laws and 
policies consistent with the conservation of the northern spotted owl, 
and there is generally little or no timber management beyond the 
removal of hazard trees or fuels management to protect structures, 
roads, human safety, and important natural attributes.
    Accordingly, we found that a critical habitat designation of these 
reserved areas in the range of the spotted owl would provide no 
additional regulatory benefits beyond what is already on these lands 
due to their permanent status as protected lands and, importantly, the 
fact that commercial timber harvest is generally not permitted on these 
lands under Federal and State law and policy. Further, we found that 
the designation of these reserve areas would confer little additional 
educational benefits associated with the conservation of the spotted 
owl, as these educational messages are already being communicated in 
many of these areas under existing programs. In sum, although national 
parks and designated wilderness were excluded under section 4(b)(2) of 
the Act from the 2012 critical habitat designation, the conservation 
value of these lands was considered in our analysis and modeling of 
which lands were essential to the conservation of the northern spotted 
owl and in the design of a critical habitat network.
    Regarding the size and distribution of national parks and 
designated wilderness, we initially identified and proposed to include 
approximately 2.6 million acres (1 million hectares) of these lands in 
the 2012 proposed critical habitat revision because they contained 
northern spotted owl habitat and were found to be essential to the 
conservation of the subspecies. These 2.6 million acres (1 million 
hectares), which we identified as habitat essential to the conservation 
of the northern spotted

[[Page 62611]]

owl, are the areas we describe as relatively small and widely 
dispersed, versus the entire 7 million acres (2.8 million hectares) as 
asserted by the AFRC. However, as we noted at the time of listing the 
northern spotted owl in 1990, many of these areas are also typically 
high-elevation lands and it is unlikely that the owl populations would 
be viable if their habitat were restricted to these areas alone (55 FR 
26114, June 26, 1990; p. 26177). Additionally, as we stated in our July 
20, 2021, proposed revision, some of these areas are widely dispersed 
and cannot be relied on to sustain the subspecies unless they are part 
of and connected to a wider reserve network as provided by the 2012 
critical habitat designation (77 FR 71876, December 4, 2012).
    (iii): The AFRC commented that we stated that the barred owl is not 
the primary threat to northern spotted owls and that this is 
contradicted by the best available science. The AFRC and several 
counties stated that there is little to no benefit of including areas 
occupied by barred owls because the two species cannot coexist and the 
presence of barred owls makes these areas unsuitable for northern 
spotted owls. The AFRC commented that our conclusion that habitat 
availability is as important as managing the threat of barred owls is 
inaccurate.
    Our response: In our July 20, 2021, proposed rule, we stated that 
the large additional exclusions made in the January Exclusions Rule 
were premised on inaccurate assumptions about the status of the owl and 
its habitat needs particularly in relation to barred owls. The large 
additional exclusions were based in part on an assumption that barred 
owl control is the fundamental driver of northern spotted owl recovery, 
when in fact the best scientific data indicate that protecting late-
successional habitat also remains critical for the conservation of the 
spotted owl (FWS 2020, p. 83). We did not intend this statement to be 
read to mean that the barred owl is not the primary threat to northern 
spotted owls. We meant that recovery of the northern spotted owl will 
require management of the barred owl as well as continued habitat 
protections. See our response to Comment (13) below for a discussion on 
the threat of barred owls to northern spotted owls and the importance 
of maintaining habitat in light of competition with barred owls. 
Although the northern spotted owl does not coexist well with the 
invasive barred owl and the two species have a high degree of overlap 
in their habitat preferences (Wiens et al. 2021, p. 2), their presence 
does not alter the suitability of the habitat to support northern 
spotted owls. In fact, the availability of suitable forest conditions 
and addressing habitat loss is needed to work in concert with barred 
owl management to reduce population declines of northern spotted owls 
(Wiens et al. 2021, pp. 1, 2).
    (iv): The AFRC commented that the Service's rationale for 
withdrawing the January Exclusions Rule based on the need for 
biological redundancy is flawed because critical habitat exacerbates 
the wildfire threat to the northern spotted owl and communities by 
inhibiting active forest management (other commenters, including 
several counties, reiterated this assertion that critical habitat 
conflicts with active management aimed at reducing wildfire risk). 
Specifically, the AFRC states that forest treatments that remove canopy 
cover to such an extent that habitat is ``downgraded'' (e.g., habitat 
that supports nesting, roosting, and foraging is removed and the area 
can only support dispersal) are avoided or deferred due to regulatory 
constraints such as section 7 consultation requirements on critical 
habitat for projects that would reduce the risk of wildfire in dry 
forest ecosystems. The AFRC provided examples of projects that they 
assert were altered due to the critical habitat designation or 
litigated and delayed due to issues related to critical habitat.
    Our response: See our response to Comment (27a) regarding perceived 
conflicts between the critical habitat designation and active forest 
management to address risk of wildfire in the dry forest ecosystem. See 
also our response to Comment (9) regarding the need for biological 
redundancy within the critical habitat designation. In regard to the 
specific prescriptions for forest management treatments in dry forest 
ecosystems within critical habitat, in the section on Special 
Management Considerations or Protection, the 2012 critical habitat rule 
referred to the guidance discussed in the Revised Recovery Plan for the 
Northern Spotted Owl (Recovery Plan) (FWS 2011, pp. III-11 to III-39). 
The Recovery Plan recommended active forest management with the goal of 
maintaining or restoring forest ecosystem structure, composition, and 
processes that would be sustainable and provide resiliency under 
current and future climate conditions. The Recovery Plan acknowledged 
that short-term impacts to northern spotted owls and their habitat may 
occur due to these actions, but they may be beneficial in the long-term 
if they reduce future losses from disturbance events, such as wildfire, 
and improve resiliency to climate change (FWS 2011, p. III-14). 
Further, the Revised Recovery Plan for the Northern Spotted Owl states 
that ``tradeoffs that affect spotted owl recovery will need to be 
assessed on the ground, on a case-by-case basis with careful 
consideration given to the specific geographical and temporal context 
of a proposed action'' and that specific prescriptions to meet the 
goals of the recovery plan vary across forest types and the landscape 
(FWS 2011, p. III-14). Section 7 consultations conducted on forest 
management actions within critical habitat provide the avenue for these 
assessments and are one of the benefits of designating these areas.
    In response to projects being altered due to the 2012 critical 
habitat designation, the examples that AFRC provided were for projects 
that were consulted on prior to the critical habitat designation but 
had not yet been implemented when the designation was finalized. 
Project modifications and additional time to address the effects to the 
physical and biological features of critical habitat and to consider 
the special management recommendations and protections discussed in the 
recently published critical habitat designation is a reasonable 
expectation for such projects. In response to projects being avoided or 
deferred within critical habitat, contrary to AFRC's assertion, 
projects to reduce the risk of wildfire continue to be consulted on 
with positive outcomes for the subspecies and the ecosystem while 
allowing for timber harvest that meets Federal agency timber production 
purposes; see our response to Comment (27a) for a discussion of recent 
consultations. The decision on whether to propose an action that will 
need to undergo section 7 consultation, however, is under the purview 
of the Federal land management agencies. As we noted in the 2012 
critical habitat rule, specifically prescribing such management is 
beyond the scope or purpose of the critical habitat designation, but 
should instead be developed by the appropriate land management agency 
at the appropriate land management scale (e.g., National Forest or BLM 
District) (USDA 2010, entire; Fontaine and Kennedy 2012, p. 1559; 
Gustafsson et al. 2012, pp. 639-641, Davis et al. 2012, entire) through 
the land managing agencies' planning processes and with technical 
assistance from the Service, as appropriate (77 FR 71876, December 4, 
2012; p. 71882).
    In response to the comment that litigation associated with critical 
habitat designations demonstrates that the designation conflicts with 
forest

[[Page 62612]]

management, we note that historically Federal forest management 
projects are frequently the subject of litigation regardless of whether 
they occur within critical habitat or not. Litigation on these projects 
does not necessarily indicate that critical habitat conflicts with 
forest management. There are myriad reasons and issues that parties 
seek to litigate Federal forest management actions; because they do so 
is not a basis to conclude that the critical habitat designation is 
flawed.
    (v): The AFRC commented that northern spotted owl critical habitat 
restricts timber harvest, citing the USFS' recent Bioregional 
Assessment (USFS 2020), which states that timber production and 
restoration often conflict with habitat protection objectives and 
provides an example of reduced timber harvest on USFS matrix lands due 
to critical habitat designation. AFRC further commented that critical 
habitat has the effect of altering management direction on USFS matrix 
lands based on the USFS recommendation in the Bioregional Assessment to 
align their reserve allocations with the 2012 critical habitat 
designation. AFRC asserts that a conflict in management of USFS forest 
lands exists such that managing hazardous fuel loads that improve 
forest health and resilience to wildfire conflicts with maintaining 
vegetative cover that is needed for northern spotted owls.
    Our response: The USFS Bioregional Assessment (Assessment) (USFS 
2020) is one of the initial steps the USFS has taken to address 
management plans that need to be updated. Most of the land management 
plans in the area analyzed under the Assessment were written about 30 
years ago and need to be updated to reflect current science and social, 
economic, and ecological challenges across this area (USFS 2020, p. 
10). The Assessment focuses on the most compelling issues across the 
landscape that need updating, including species' habitat needs and the 
need to address climate change, severe wildfire risk, and forest 
health. The Assessment indicates that timber harvest is no longer 
emphasized on USFS matrix lands that were designated as critical 
habitat and expresses the need to align their reserve allocations with 
the 2012 critical habitat designation (USFS 2020, pp. 60, 63). However, 
the Assessment further states that ``better realignment of the late-
successional reserve network with critical habitat could adjust the 
matrix lands available for ecological treatments, which might provide 
additional timber outputs'' (USFS 2020, p. 74). Additionally, the 
Assessment states that ``[b]etter alignment is needed between 
designated critical habitat for spotted owls and the late-successional 
old-growth portion of the late-successional reserve network; this could 
help simplify management direction and better protect high-quality 
habitat for owls and other old growth-dependent species, such as 
marbled murrelet. In addition to protecting these habitats, management 
direction that allows active management to restore and improve 
ecosystem resilience could help conserve and develop northern spotted 
owl habitat in the long term'' (USFS 2020, p. 63).
    The Assessment expresses an urgent need to update their land 
management plans to modify desired conditions associated with dry 
forest ecosystems and to allow for active management in fire-prone 
areas to restore ecological integrity and habitat (USFS 2020, pp. 63, 
71, 76); active management to address these needs aligns with both the 
Recovery Plan for the Northern Spotted Owl and the 2012 critical 
habitat designation. Finally, the Assessment recognizes that ``social 
values related to land management have begun to shift toward 
recognition of the broad benefits associated with our natural resources 
and the importance of balancing resource protection with timber 
production'' (USFS 2020, p. 62).
    We acknowledge that the designation of critical habitat on USFS 
matrix lands can inform where timber harvest is emphasized as the USFS 
considers the special management considerations and protections 
discussed in the 2012 critical habitat designation. Education and 
providing information are important functions of critical habitat 
designations, especially when designing and implementing forest 
management projects on public lands. However, the Service continues to 
advocate for active management of forests to reduce wildfire risks as 
described in our 2012 critical habitat rule and the Recovery Plan. We 
designated USFS matrix lands as critical habitat where they contain 
habitat that is essential to the subspecies' conservation (77 FR 71876, 
December 4, 2012; p. 71895).
    See our response to Comment (27a) regarding perceived conflicts 
between the critical habitat designation and active forest management 
to address the risk of wildfire in the dry forest ecosystem.
    (vi): The AFRC commented that our July 20, 2021, proposed revised 
critical habitat rule fails to consider the contribution that 
management plans have in addressing connectivity across the landscape 
and the current level of connectivity provided by management since the 
NWFP was adopted. The AFRC stated that the Service acknowledged in the 
Recovery Plan that the NWFP provides direction to address connectivity 
and that both the reserve and matrix land-use allocations would 
contribute to connectivity. AFRC further stated that the USFS maintains 
dispersal habitat across their land-use allocations, that dispersal is 
not a limiting factor, and that there is far more dispersal habitat 
than is needed.
    Our response: See our response to Comment (9) regarding the need 
for biological redundancy within the critical habitat designation and 
our responses to Comments (25c-e) regarding our consideration of 
management plans. We evaluate effects of Federal actions on northern 
spotted owl dispersal habitat during the section 7 consultation process 
at a larger scale than effects of the action to nesting, roosting, and 
foraging habitat. This approach is to ensure that dispersal habitat is 
providing for connectivity across the landscape between large blocks of 
nesting, roosting, and foraging habitat that reproducing northern 
spotted owls prefer when available in an area. The amount of dispersal 
habitat varies across the designation and is limited in some geographic 
areas such as between the Coast Range and Cascade Range in southern 
Oregon (FWS 2020, pp. 28-32). The biological redundancy included in the 
design of the critical habitat network allows for some timber harvest 
and was included to address the unpredictability of the extent of 
natural disturbances such as wildfire.
    (vii): The AFRC commented that ``mere connectivity is not an 
element of habitat or critical habitat, and effects only on 
connectivity cannot constitute `adverse modification' in violation of 
the ESA,'' citing Defs. of Wildlife v. Zinke, 856 F.3d 1248, 1262 (9th 
Cir. 2017) and that areas that provide only connectivity, therefore, 
cannot be designated as critical habitat.
    Our response: We do not agree with the commenter's interpretation 
of the cited case, which involved effects of a proposed Federal action 
to the desert tortoise. There, the project effects challenged were not 
to designated critical habitat, but rather to habitat that provided 
connectivity between designated critical habitat units. The Service 
concluded that although the project affected connectivity habitat for 
the tortoise, those effects did not adversely modify critical habitat. 
Plaintiffs asserted that the Service was obligated to evaluate the 
effect of that connectivity loss as an ``adverse modification'' to 
critical habitat. The Service appropriately considered the effects of 
the potential loss of

[[Page 62613]]

connectivity in examining whether the Federal action jeopardized the 
species, but reasonably concluded that alterations to habitat that is 
not designated as critical habitat did not ``adversely modify'' that 
critical habitat.
    The court simply affirmed this rational approach; the court's 
decision does not stand for the proposition that designated critical 
habitat cannot include the characteristics of connectivity. To the 
contrary, the court recognized the well-established scientific 
principles of connectivity (``[c]onnectivity is the ``degree to which 
population growth and vital rates are affected by dispersal'' and ``the 
flow of genetic material between two populations.''). Connectivity 
promotes stability in a species by ``providing an immigrant subsidy 
that compensates for low survival or birth rates of residents'' and 
``increasing colonization of unoccupied'' habitat,'' Defs. of Wildlife 
v. Zinke at 1254. This case is distinguishable from the circumstances 
of the northern spotted owl in that the Service has expressly 
designated ``connectivity'' habitat as critical habitat, i.e., the 
dispersal habitat.
    For the northern spotted owl, a project that proposes significant 
impacts to designated critical dispersal habitat that impedes 
connectivity between large blocks of designated critical habitat used 
for nesting, roosting, or foraging could result in a conclusion that 
the action would destroy or adversely modify critical habitat. Although 
habitat that allows for dispersal may currently be marginal with 
insufficient characteristics to support nesting, roosting, or foraging, 
it provides an important linkage function among blocks of higher-
quality habitat both locally and over the northern spotted owl's range 
that is essential to its conservation. Juvenile dispersal is a highly 
vulnerable life stage for northern spotted owls and enhancing the 
survivorship of juveniles during this period could play an important 
role in maintaining stable populations of northern spotted owls.
    Dispersal habitat is habitat that both juvenile and adult northern 
spotted owls use when looking to establish a new territory. Both 
dispersing subadults and nonterritorial birds (often referred to as 
``floaters'') are present on the landscape and require suitable habitat 
to support dispersal and survival until they recruit into the breeding 
population; this habitat requirement is in addition to that already 
used by resident territorial owls. Successful dispersal of northern 
spotted owls is essential to maintaining genetic and demographic 
connections among populations across the range of the subspecies and 
population growth can occur only if there is adequate habitat in an 
appropriate configuration to allow for the dispersal of owls across the 
landscape; therefore, the Service included dispersal habitat as part of 
the critical habitat designated for the northern spotted owl.
    (viii): Comments submitted by AFRC (and incorporated by others) 
include assertions that the Service included within the 2012 critical 
habitat designation areas that are not ``habitat'' for the northern 
spotted owl, in contravention of the Supreme Court's subsequent ruling 
in 2018 that critical habitat designated under the Act must be habitat 
for the species in the first instance (Weyerhaeuser Co. v. U.S. Fish 
and Wildlife Serv., 139 S. Ct. 361, 368 (2018) (``Weyerhaeuser''). 
These commenters assert that areas that are not ``habitat'' for the owl 
within the critical habitat designation should be excluded by the 
Secretary under section 4(b)(2).
    Our response: As we explain in more detail in the Background 
section below, we reviewed our 2012 critical habitat rule for 
consistency with our new regulation defining ``habitat'' following the 
Weyerhaeuser decision, and demonstrate why all of the designated 
critical habitat is habitat for the northern spotted owl. We also 
respond to comments seeking a wide variety of exclusions based on 
general assertions that areas are not ``habitat'' for the northern 
spotted owl presently, explaining why the assumptions underlying these 
assertions are incorrect as matter of fact or law; see responses to 
Comments (26-28).
    Comment (D): The AFRC and several counties commented on several 
other issues pertaining to our March 1, 2021, delay rule; April 30, 
2021, delay rule; and proposed withdrawal of the January Exclusions 
Rule as summarized below:
    (i): Commenters stated that the Service predetermined to issue a 
further delay rule prior to publishing the March 1, 2021, delay rule.
    Our response: As described in the March 1, 2021, delay rule, the 
Service was concerned about the potential effects of the January 2021 
exclusions to impede conservation of the northern spotted owl, and 
sought comments on the issues of fact, law, and policy regarding the 
January Exclusions Rule. We noted that an additional delay of the 
effective date might be warranted and expressly sought comment. As the 
first delay rule would expire by April 30, and it can take some time to 
develop and obtain publication of rules in the Federal Register, it was 
appropriate for the Service to prepare a draft of such a second rule 
while the first was being published. That the Service took steps to do 
so is not a ``predetermination.'' Agencies frequently prepare drafts of 
rules and change them based on internal and public comments. Any 
decision to move forward with a second delay rule is not final until 
authorized by the Service and published in the Federal Register.
    (ii): Commenters stated that the delay rule is unlawful and 
contrary to the Administrative Procedure Act and failed to effect a 
valid amendment of the January Exclusions Rule, which was due to go 
into effect on March 16, 2021. Commenters stated that the Service's 
issuance of the March 1, 2021, delay rule without providing an 
opportunity for public notice and comment was in violation of the 
Administrative Procedure Act. Commenters further stated that the April 
30, 2021, rule delaying the effective date of the January Exclusions 
Rule until December 15, 2021, was issued after the first delay rule 
expired and the January Exclusions Rule had gone into effect.
    Our response: As the commenter noted, issues concerning the 
lawfulness of the delay rule are the subject of litigation brought 
against the Service on these topics in which they are plaintiffs, see 
American Forest Resource Council v. Williams, No. 1:21-cv-00601-RJL 
(D.D.C). The Service has responded to these assertions in briefs before 
the court. In summary, the Service's decision to delay the 
implementation of the January Exclusions Rule and ultimately to allow 
for this additional rulemaking to withdraw it, was consistent with all 
applicable laws. For further details, please see our responsive briefs 
in that litigation, available in our record for this rulemaking.
    (iii): Commenters stated that we cannot withdraw a rule that has 
been published; it must instead be repealed, rescinded, or amended. 
Based on this rationale, commenters stated that we must redesignate in 
a new rulemaking the acres that were excluded in the January Exclusions 
Rule if we are to retain them in the critical habitat designation and 
that we must complete a new economic analysis for those redesignated 
lands.
    Our response: Whether or not the Service uses the term ``withdraw, 
repeal, or rescind'' does not alter the result of this final rule--the 
exclusions finalized (but not in effect) in the January rule are 
``withdrawn, repealed, or rescinded'' by this final rule. Because this 
final rule to take this action was developed with notice and comment 
rulemaking, ``repeal'' would be

[[Page 62614]]

consistent with the language used in the Administrative Procedure Act 
for the notice and comment rulemaking here. However, as the January 
Exclusions Rule was final, but never went into effect, ``withdraw'' is 
similar to situations in which a rule is developed but never went into 
effect as cited by the commenters. In any event, as the January 
Exclusions Rule never went into effect, the Service was not obligated 
to ``redesignate'' the critical habitat areas already designated and 
unchanged since the 2012 critical habitat rule.
    (iv): Commenters stated that withdrawing the January Exclusions 
Rule violates the terms and intent of the settlement agreement in 
Carpenters Industrial Council et al. v. Bernhardt et al., No. 13-361-
RJL (D.D.C.) (retitled Pacific Northwest Regional Council of Carpenters 
et al. v. Bernhardt et al. with the substitution of named parties 
before being dismissed).
    Our response: The commenter does not dispute that the Service 
completed the production of a proposed and final rule per the timeline 
in the settlement agreement, as extended. Rather, the commenter asserts 
that because of the alleged flaws in the delay rules, the withdrawal of 
the January Exclusions Rule violates the settlement agreement terms and 
intent. The Service addresses the assertions regarding the delay rules 
above. As to the ``intent'' of the settlement agreement, the Service is 
here finalizing a revision to the 2012 critical habitat rule excluding 
additional areas under authority of section 4(b)(2). This final rule is 
not the broad exclusions that the commenters sought, but this does not 
mean the Service violated either the intent, let alone the terms, of 
the settlement agreement with the litigating parties. The Service did 
not (nor could it have) pre-committed in a settlement agreement to 
ultimately determine a set of exclusions in advance of public notice 
and comment rulemaking.
    Comment (E): Douglas County commented that exclusion of O&C lands 
would not result in extinction of the northern spotted owl and that 
exclusion of these areas would result in a stronger partnership with 
local forest managers.
    Our response: See our consideration of the benefits of partnerships 
and our extinction analysis in Consideration of Impacts Under Section 
4(b)(2) of the Act.
    Comment (F): Commenters stated that our reevaluation of the 
exclusions in the January Exclusions Rule is counter to the finding the 
Secretary made in 1992 that ``overall effects on the Northwest timber 
industry and to some counties in particular, were potentially severe 
and that further consideration should be given to excluding additional 
acreage from the final designation to reduce the overall economic 
impacts that may result from the designation of critical habitat.''
    Our response: Under section 4(b)(2) of the Act, the Secretary may 
exclude an area from critical habitat if she determines that the 
benefits of such exclusion outweigh the benefits of specifying such 
area as part of the critical habitat, unless she determines, based on 
the best scientific data available, that the failure to designate such 
area as critical habitat will result in the extinction of the species. 
In making that determination, the Secretary has broad discretion 
regarding which factor(s) to use and how much weight to give to any 
factor; this discretion is not limited by previous determinations such 
as we made in 1992. In this rulemaking, the Secretary has exercised her 
discretion to exclude certain areas and not others from the critical 
habitat designation after weighing these benefits.
    Comment (G): Conservation groups commented that to the extent the 
January Exclusions Rule relied on economic impacts, recent research 
(Ferris and Frank 2021) shows that the economic impacts of the 2012 
critical habitat designation have been overstated and are instead 
consistent with what the Service found at that time.
    Our response: Ferris and Frank (2021) discuss the impact that the 
1990 listing of the northern spotted owl and subsequent critical 
habitat designation in 1992 had on employment in the Lumber and Woods 
Products Sector between 1984 and 2000. The authors found that the 
impacts to employment in this sector were similar to what the 
government projected at the time of listing of the northern spotted owl 
and were not as large as projected in industry studies. Their study, 
however, did not focus on the incremental impacts of designating 
critical habitat for the northern spotted owl above those impacts 
attributed to listing, which is how the Service assesses the economic 
effect of critical habitat designations.

Comments Specific to Exclusions

Comments From Federal Agencies

    Comment (1): The USFS stated that, as critical habitat in southern 
Oregon and northern California becomes more fire prone, as evidenced by 
the 2020 fire season, the USFS continues to be concerned for the 
persistence of the northern spotted owl in the Pacific Northwest. The 
USFS encouraged connectivity between existing critical habitat units. 
In particular, the USFS commented that the Service should consider the 
probability of wildfire events, the effect of climate change, and 
projected wildfire behavior as tools for determining where critical 
habitat designations should be revised throughout the range of the 
northern spotted owl. Additionally, on December 15, 2020, after the 
comment period closed on our August 11, 2020, proposed rule, we 
received a comment letter from the Under Secretary, Natural Resources 
and Environment, Department of Agriculture, supporting Interior's 
efforts to revise the northern spotted owl critical habitat designation 
because of difficulties encountered by the USFS in achieving its 
statutory mission for managing the National Forests. The letter 
discussed the devastation to the spotted owl habitat and to other 
property caused by wildfire in general, using the 2020 wildfire season 
as an example. The letter requested that the USFS and the Service work 
together in protecting the northern spotted owl and lowering the risks 
of catastrophic wildfire.
    Our response: In response to the comment submitted by the 
Department of Agriculture, it is important to note that the Service 
works closely with the USFS and other land managers to both recover the 
northern spotted owl and lower the risk of catastrophic wildfire. For 
example, the Service has completed multiple consultations under section 
7 with Federal agencies on fuels reduction, stand resiliency, and pine 
restoration projects in dry forest systems within the range of the 
northern spotted owl. Those actions have included treatment areas that 
reduce forest canopy to obtain desired silvicultural outcomes, lower 
potential wildfire severity, and meet the need for timber production. 
They also promote ecological restoration and are expected to reduce 
future losses of spotted owl habitat and improve overall forest 
ecosystem resilience to climate change. We have concluded in these 
consultations that the actions do not destroy or adversely modify 
critical habitat as defined under the Act and our implementing 
regulations. Thus, in our experience, Federal agencies are able to plan 
and implement active forest management, including commercial timber 
harvests, to reduce wildfire risk in northern spotted owl designated 
critical habitat.
    In addition, the Service considered the potential impacts of 
wildfire in our 2012 critical habitat designation (77 FR 71876, 
December 4, 2012). The 2012 critical habitat rule represented an 
increase in the total land area identified

[[Page 62615]]

from previous designations in 1992 and 2008. This increase in area was 
due, in part, to the need to provide for essential biological 
redundancy in northern spotted owl populations and habitat in fire-
prone landscapes (Noss et al. 2006, p. 484; Thomas et al. 2006, p. 285; 
Kennedy and Wimberly 2009, p. 565). Please see our response to Comment 
(9) concerning the impact of the 2020 wildfires.
    In response to these and similar comments from others asserting 
that excluding areas from critical habitat would lead to a reduction in 
wildfire risks, the January Exclusions Rule acknowledged that Federal 
land managers could conduct active management in areas of designated 
critical habitat without violating the adverse modification prohibition 
of section 7 of the Act. The January Exclusions Rule went further, 
however, and inferred that the exclusion of areas from designated 
critical habitat would increase the potential for Federal land managers 
to include more lands in the Harvest Land Base, and allow longer cycles 
between timber harvests to provide many environmental benefits, 
including reductions in wildfire risk. It is certainly true that longer 
cycles between timber harvests, i.e., allowing trees to become older 
before they are removed, can have environmental benefits for species 
dependent on mature forests such as the northern spotted owl. However, 
it is speculative to conclude that Federal land managers would change 
their approach to allow for longer rotations if lands are excluded from 
the northern spotted owl critical habitat designation. There also 
remains scientific uncertainty about the conclusion that harvest of 
timber always lessens risks for catastrophic wildfire as compared with, 
for example, a focus on fuel reduction treatments targeted to restore 
more sustainable ecological processes. While the efficacy of standalone 
treatments such as thinning is uncertain and site-dependent, there 
exists widespread agreement that combined effects of thinning plus 
prescribed burning consistently reduce the potential for severe 
wildfire across a broad range of forest types and conditions (Prichard 
et al. 2021, Fule et al. 2012, Kalies et al. 2016, Stephens et al. 
2021).
    In response to the USFS comments concerning spotted owl habitat 
connectivity, providing connectivity while also supporting other uses 
of forest lands is consistent with the critical habitat designation. 
For example, we found in our 2016 Biological Opinion on the revised BLM 
RMPs that the spatial configuration of ``reserve'' land use allocations 
identified in the RMPs provide for northern spotted owl connectivity 
across the landscape. Reserve land-use allocations are areas in which 
BLM prioritizes management for resources other than commercial timber 
production, although active management such as harvest may occur in 
some reserves in order to achieve management objectives. The Harvest 
Land Base land-use allocation describes areas where BLM prioritizes 
commercial timber production. The BLM's management of the Late-
Successional Reserve for northern spotted owl habitat and other 
reserves for non-timber objectives, along with the management and 
scheduling of timber sales within the Harvest Land Base, are expected 
to provide for northern spotted owl dispersal between physiographic 
provinces and between and among large blocks of habitat designed to 
support clusters of reproducing northern spotted owls (FWS 2016, p. 
698), while also allowing BLM to meet its timber harvest goals.

Comments From States

    Section 4(b)(5)(A)(ii) of the Act requires the Service to give 
actual notice of any designation of lands that are considered to be 
critical habitat to the appropriate agency of each State in which the 
species is believed to occur, and invite each such agency to comment on 
the proposed regulation. Section 4(i) of the Act states, ``the 
Secretary shall submit to the State agency a written justification for 
his failure to adopt regulations consistent with the agency's comments 
or petition.'' We notified the States of Washington, Oregon, and 
California of the proposed additional exclusions in Oregon. We did not 
receive comments from any State or State agency on the August 11, 2020, 
or July 20, 2021, proposed rules, only comments regarding the January 
Exclusions Rule; see our response to Comment (Ci).

Comments From Counties

    We received comments from Klickitat, Lewis, and Skamania Counties 
in Washington; from Douglas, Jackson, and Harney Counties in Oregon; 
and from Siskiyou County in California. Most comments from counties 
pertained to either economic analysis or exclusions; see Economic 
Analysis Comments and Exclusions Comments below for County comments and 
our responses. Other comments from the counties are addressed in the 
section above titled Comments on the Withdrawal of the January 
Exclusions Rule and the section below titled Comments on July 20, 2021, 
Proposed Rule.

Comments From Tribes

    We received comments from the Confederated Tribes of Coos, Lower 
Umpqua, and Siuslaw Indians; the Cow Creek Band of Umpqua Tribe of 
Indians; and the Coquille Indian Tribe.
    Comment (2): The Confederated Tribes of Coos, Lower Umpqua, and 
Siuslaw Indians and the Cow Creek Band of Umpqua Tribe of Indians 
commented in support of the proposed exclusion of lands recently 
transferred to them in trust. The Cow Creek Band of Umpqua Tribe of 
Indians expressed concern, however, that the proposed rule did not 
consider Tribal management plans and objectives for Indian forest land 
as a basis for the exclusions. The Coquille Tribe similarly commented 
in general that the rule should include a statement that recognizes the 
dominant purpose of the Coquille Forest to generate sustainable 
revenues sufficient to support the Coquille Tribal government's ability 
to provide services to Coquille Tribal members, and ensure that the 
resulting critical habitat designation avoids burdening the Coquille 
Forest's dominant purpose.
    Our response: No Indian lands were designated in the December 4, 
2012, critical habitat rule (77 FR 71876). Since 2012, Federal lands 
managed by the BLM were transferred in trust to the Confederated Tribes 
of Coos, Lower Umpqua, and Siuslaw Indians and the Cow Creek Band of 
Umpqua Tribe of Indians pursuant to the Western Oregon Tribal Fairness 
Act (Pub. L. 115-103). This revised rule excludes those recently 
transferred lands from critical habitat designation. We considered 
Tribal management plans in our analysis of these exclusions as 
requested by the commenters; see Consideration of Impacts Under Section 
4(b)(2) of the Act.
    We have not designated critical habitat within the Coquille Forest. 
Should we consider revisions to the critical habitat designation in the 
future, the Service will coordinate with the Coquille Tribe to address 
effects to the Forest and its dominant use as managed by the Tribe.

Public Comments

Public Comments on Critical Habitat Boundaries
    Comment (3): Commenters expressed concern that areas we proposed 
for exclusion in our August 11, 2020, proposed rule and our July 20, 
2021, proposed rule provide important connectivity between the Coast 
Range, Cascades, and Klamath/Siskiyou Mountains populations of northern

[[Page 62616]]

spotted owls, and that exclusion could reduce colonization and gene 
flow, cause further isolation, and increase the probability of 
extinction of the owl. Commenters further stated that we should not 
rely on outdated plans that assume that northern spotted owls can 
successfully disperse in low-quality habitat, and that the distribution 
of reserves on National Forests alone will not meet the subspecies' 
need for well-connected habitat.
    Our response: The BLM updated their RMPs in 2016; we found in our 
2016 Biological Opinion on the revised BLM RMPs that the spatial 
configuration of reserves, the management of those reserves for the 
retention, promotion, and development of northern spotted owl habitat, 
and the management and scheduling of timber sales within the Harvest 
Land Base land use allocation are all expected to provide adequate 
opportunities for northern spotted owl dispersal between physiographic 
provinces and between and among large blocks of habitat designed to 
support clusters of reproducing northern spotted owls (FWS 2016, p. 
698). Thus, by excluding areas within the Harvest Land Base, we are not 
diminishing or altering connectivity functions of the remaining 
designated critical habitat to any significant degree. Additionally, 
regarding the reliance on reserves alone to facilitate connectivity, 
this revised designation retains USFS matrix lands that are essential 
to the conservation of the subspecies in addition to reserve lands. 
Please see our response to Comment (9) concerning the impact of the 
2020 wildfires and Comment (26b) concerning the quality of dispersal 
habitat.
    In response to this comment, the January Exclusions Rule concluded 
that connectivity would remain protected without the critical habitat 
designation because Federal actions that ``may affect'' northern 
spotted owls would still require consultation under section 7 of the 
Act to evaluate whether the action jeopardizes the continued existence 
of the subspecies. On further review, we conclude that assumption was 
overstated as a basis to exclude these lands. It is true that Federal 
actions that ``may affect'' northern spotted owls, including actions 
that impact northern spotted owl habitat even if not designated as 
``critical,'' would still undergo section 7 consultation (whether 
informal or formal, depending on the effects, see our response to 
Comment 7, below). The critical habitat designation, however, benefits 
the northern spotted owl as a landscape-scale conservation network that 
connects large blocks of habitat that are able to support multiple 
clusters of northern spotted owls. The designation identifies areas on 
the landscape that may require special management considerations or 
protection.
    The section 7 consultation on effects to critical habitat ensures 
these considerations occur and evaluates the post-project functionality 
of the network to provide for connectivity at the subunit, unit, and 
designation scales. Evaluating habitat at multiple scales in a 
consultation on critical habitat ensures the landscape continues to 
support the habitat network locally, regionally, and across the 
designation.
    These considerations are not necessarily involved to the same 
degree when considering the effects to northern spotted owl habitat 
that is not designated as critical as part of the jeopardy analysis in 
a section 7 consultation. A consultation on effects to the species 
(including effects resulting from changes to the non-designated habitat 
of the species) as part of the ``jeopardy'' prong looks primarily at 
how the project affects individuals, populations, and the species 
rangewide. Consultation on the effects to the designated critical 
habitat (the ``critical habitat'' prong of the consultation) focuses on 
that habitat network. This reflects Congress's clear articulation of 
two limits on Federal actions in section 7: A prohibition against 
jeopardizing the species, and a prohibition against destroying or 
adversely modifying its designated critical habitat. While we do 
evaluate the effects of landscape level impacts to habitat as part of 
the jeopardy analysis, this does not mean that the analysis of impacts 
to critical habitat are no longer necessary; the two analyses are not 
necessarily interchangeable.
    Additionally, many of the lands that were excluded in the January 
Exclusions Rule are reserves or matrix lands that provide habitat that 
we found in our 2012 critical habitat rule were essential to the 
conservation of the northern spotted owl (77 FR 71876; p. 71895). See 
our reconsideration of the weighing of the benefits of inclusion versus 
the benefits of excluding these lands and our extinction analysis in 
Consideration of Impacts Under Section 4(b)(2) of the Act. The Harvest 
Land Base lands that we exclude here in this final rule represent only 
a small portion (less than 2 percent) of the critical habitat 
designation and represent only 7 percent of the land base managed by 
the BLM under the 2016 RMPs, with the remaining lands largely managed 
as reserves. We evaluated the effects of future harvest on the Harvest 
Land Base lands in our 2016 biological opinion on the BLM's revised 
RMPs (BLM 2016a, b) and found that recovery of the northern spotted owl 
would not be impeded and that the critical habitat units would continue 
to provide connectivity and sufficient habitat across the landscape 
(FWS 2016). Therefore, additional section 7 consultation on critical 
habitat within the Harvest Land Base as currently described in the 2016 
RMPs would provide no incremental conservation benefit as the 
management direction under the RMPs already provides a conservation 
strategy consistent with recovery of the northern spotted owl and will 
not appreciably diminish the conservation value of the critical habitat 
designation.
    The January Exclusions Rule, in response to this comment, also 
stated that ``some of the areas used by the northern spotted owl for 
migration are secondary growth forests'' and that ``excluding such 
areas from critical habitat will not change their characteristics as 
secondary growth forests'' and they will continue to be used for 
``migratory purposes.'' On further review we find it is accurate that 
northern spotted owls may use areas of secondary growth forest; 
however, their use of these areas is dependent on the age, diversity, 
and condition of those forests. See also our response to Comment (26) 
below. An increase in the areas available for timber harvest, which was 
identified as a benefit of excluding the 3.4 million acres (1.4 million 
hectares) in the January Exclusions Rule, could occur if these lands 
were excluded from the critical habitat designation and land management 
agencies were no longer required to consider the special management 
considerations of critical habitat and subsequently amended their 
management approach or land management plans to allow for more harvest. 
The resulting increase in timber harvest could significantly alter the 
ability of these stands to provide for dispersal. While these changes 
in management and any resulting projects would not be immediate if 
these areas were excluded from the designation, over time expanded 
timber harvest would reduce connectivity of these areas to older, more 
complex forests that provide nesting, roosting, and foraging habitat 
for populations of northern spotted owls. Conserving or enhancing 
connectivity between populations to facilitate dispersal and subsequent 
colonization of large blocks of habitat that can support clusters of 
reproducing northern spotted owls was a key feature in the design of 
the critical habitat network.

[[Page 62617]]

    Additionally, the January Exclusions Rule assumed that the reduced 
regulatory burden in the process of Federal planning and implementation 
of timber management would result in increased harvest. Increased 
harvest at the scale of exclusions in the January Exclusions Rule would 
reduce the overall connectivity and suitability of the critical habitat 
network. That reduction in connectivity under the January Exclusions 
Rule was, in hindsight, quite significant because of the expansive 
elimination of critical habitat designated in areas of the northern 
spotted owl range, with some critical habitat subunits being reduced by 
up to 90 percent. The much smaller exclusions we finalize here 
eliminate only portions of critical habitat units that overlap with the 
Harvest Land Base allocation, which, as we already determined in our 
2016 biological opinion, could be harvested without affecting the 
conservation value, including connectivity, of that designated critical 
habitat. See also our response to Comment (9) concerning the impact of 
the 2020 wildfires.
    Comment (4): Commenters noted that the lands proposed for exclusion 
in our August 11, 2020, proposed rule and July 20, 2021 proposed rule, 
in particular Federal lands, met the definition of critical habitat for 
the northern spotted owl and were determined to be essential in our 
2012 critical habitat designation (77 FR 71876), and so questioned how 
those lands could now be appropriate for exclusion from designation. 
Additionally, commenters questioned how the exclusion of these lands 
will not result in extinction.
    Our response: Areas that are found essential to the conservation of 
the species may be considered for exclusion from a critical habitat 
designation under section 4(b)(2) of the Act. The Secretary may exclude 
an area from critical habitat if she determines that the benefits of 
such exclusion outweigh the benefits of specifying such area as part of 
the critical habitat, unless she determines, based on the best 
scientific data available, that the failure to designate such area as 
critical habitat will result in the extinction of the species.
    We found the areas we designated in 2012 to be essential to the 
conservation of the northern spotted owl. However, the BLM revised 
their RMPs in 2016, amending their conservation strategy for the 
northern spotted owl and related land use allocations (BLM 2016a, 
2016b). We found in our 2016 Biological Opinion on the BLM RMPs (FWS 
2016, p. 700) that, even with the projected timber harvest in the 
Harvest Land Base land use allocation, the management direction 
implemented under the RMPs is consistent with the Revised Recovery Plan 
for the Northern Spotted Owl (FWS 2011) and would not appreciably 
diminish the conservation value of, or adversely modify, critical 
habitat (FWS 2016, p. 702). Because we had this updated information and 
analysis, we reconsidered whether exclusion of these areas was 
appropriate. We have determined that the benefits of exclusion of the 
Harvest Land Base land outweigh the benefits of including these areas, 
and that exclusion of these lands will not result in the extinction of 
the northern spotted owl. See our exclusion and extinction analyses for 
Harvest Land Base lands under Consideration of Impacts Under Section 
4(b)(2) of the Act.
    The January Exclusions Rule, which excluded all areas managed by 
the BLM under the O&C Act, including reserves as well as the Harvest 
Land Base, states that excluding the 3.4 million acres (1.4 million 
hectares) identified in that rule will not cause the extinction of the 
northern spotted owl. As discussed in our proposed rule, on 
reconsideration we find that conclusion is not supported by the science 
of conservation biology, the current population trend of the northern 
spotted owl, nor the purpose of the Act. See our analysis in the 
Withdrawal of the January Exclusions Rule section of this rule for a 
more detailed discussion.
    Comment (5): A commenter stated that smaller blocks of northern 
spotted owl critical habitat, such as those areas in the Harvest Land 
Base proposed for exclusion, are also important for the following 
reasons: They are migration/dispersal corridors linking larger habitat 
blocks; they link the Coast Range province with the Cascade Range 
province; and they provide migration corridors that allow a species to 
adapt to climate (and habitat) change by relocating to higher quality 
habitat.
    Our response: See our response to Comment (3). Additionally, the 
BLM manages the Harvest Land Base acres in accordance with the 
management direction of the BLM RMPs (BLM 2016a, 2016b). In our 2016 
Biological Opinion on the BLM RMPs (FWS 2016), we found that, even with 
the projected timber harvest in the Harvest Land Base, the area would 
continue to function for the dispersal of northern spotted owls and 
would provide connectivity between large blocks of habitat designed to 
support clusters of reproducing northern spotted owls.
    Comment (6): Commenters stated we failed to explain why the Service 
no longer believes that Oregon and California Railroad Revested Lands 
(O&C lands) make a significant contribution toward meeting the 
conservation objectives for the northern spotted owl and that we cannot 
attain recovery without them. Other commenters expressed concern about 
excluding lands in southwest Oregon where the majority of O&C lands 
occur.
    Our response: The O&C lands were revested to the Federal Government 
under the Chamberlin-Ferris Act of 1916 (39 Stat. 218). The Oregon and 
California Revested Lands Sustained Yield Management Act of 1937, 
Public Law 75-405 (O&C Act) addresses the management of O&C lands. The 
O&C Act identifies the primary use of revested timberlands for 
permanent forest production. The Harvest Land Base lands that we 
exclude in this revision are mostly on O&C lands managed by the BLM 
under the 2016 RMPs. However, portions of O&C lands, outside of the 
Harvest Land Base, that are managed by either the BLM or the USFS that 
provide essential habitat and are located in a spatial configuration 
that provides connectivity across the designation are still important 
to northern spotted owl conservation and are retained as critical 
habitat in this revision. As we noted above, we found in our 2016 
Biological Opinion on the BLM RMPs (FWS 2016, p. 700) that, even with 
the projected timber harvest in the Harvest Land Base land use 
allocation, the management direction implemented under the RMPs is 
consistent with the Revised Recovery Plan for the Northern Spotted Owl 
(FWS 2011) and would not appreciably diminish the conservation value 
of, or adversely modify, critical habitat (FWS 2016, p. 702). Thus, for 
the reasons explained in Consideration of Impacts Under Section 4(b)(2) 
of the Act, we have excluded the Harvest Land Base from the critical 
habitat designation. This conclusion is based in part on the 
expectation that these lands and the remaining designated critical 
habitat in other land use allocations will be managed consistent with 
the BLM's 2016 RMPs.
    The January Exclusions Rule, because it excluded all O&C lands, 
provided a different response to this comment: ``The O&C Act provides, 
and the courts have confirmed, that the primary use of these revested 
timberlands is for permanent forest production on a sustained yield 
basis. The Supreme Court has additionally determined that the ESA does 
not take precedence over an agency's mandatory (non-discretionary) 
statutory mission. Based on these court rulings, we have determined 
that exclusion of the O&C

[[Page 62618]]

lands as critical habitat is proper in this case.'' 86 FR 4820, January 
15, 2021, p. 4822.
    Though not stated explicitly, this response implied (and has been 
interpreted by some commenters to mean) that the O&C Act removes any 
discretion the BLM may have in how to manage the O&C lands on a 
sustained-yield basis such that the Endangered Species Act does not 
apply to the BLM's management of those lands at all. We take this 
opportunity to correct that implication. Courts reviewing the BLM's 
management of O&C lands have found that the BLM retains discretion as 
to how to achieve sustained yield timber production. See AFRC v. 
Hammond, 422 F.Supp. 3d 184 at 190-91 (D.D.C. 2019); see also Swanson 
Grp. Mfg. LLC v. Salazar, 951 F. Supp. 2d 75, 82 (D.D.C. 2013), vacated 
on other grounds sub nom. Swanson Grp. Mfg. LLC v. Jewell, 790 F.3d 235 
(D.C. Cir. 2015); Portland Audubon Soc. v. Babbitt, 998 F.2d 705, 709 
(9th Cir. 1993).
    None of these courts--including AFRC v. Hammond, that found legal 
infirmities in the BLM's adoption of its 2016 RMPs--has held that the 
O&C Act precludes the BLM from considering opportunities to conserve 
threatened and endangered species when authorizing actions on O&C 
lands. Indeed, that district court decision narrowly ruled only that 
BLM lacks the authority to designate reserves on O&C lands because it 
violates the mandate to manage those lands for sustained yield timber 
harvest. It expressly stated that BLM had discretion in the management 
of those lands, and certainly did not hold that BLM lacks such 
discretion altogether. To the extent the January Exclusions Rule relied 
on the assumption to the contrary, it was incorrect. In short, 
``reserves'' are not the same as designated critical habitat.
    In any case, as we discuss further in Consideration of Impacts 
Under Section 4(b)(2) of the Act, we conclude that the exclusion of 
some O&C lands from the designation as critical habitat is appropriate, 
but the exclusion of all O&C lands is not.
Public Comments Regarding the Northwest Forest Plan (NWFP) or the BLM 
Revised Resource Management Plans (RMPs)
    Comment (7): Commenters expressed concern that exclusions would 
allow BLM to harvest timber without project-specific consultation under 
section 7 of the Endangered Species Act. Commenters also expressed 
concern that the Service no longer considers habitat fitness when 
assessing project effects and incidental take in section 7 
consultations. Commenters further assumed that section 7 consultations 
would be required only if surveys confirm northern spotted owl 
presence, which commenters considered problematic because they conclude 
we cannot reliably detect northern spotted owls when barred owls are 
present. Thus, critical habitat provides a benefit through section 7 
review likely resulting in the retention of the physical and biological 
features needed by northern spotted owls, which cannot be addressed 
otherwise through section 7 consultations.
    Our response: We completed a programmatic section 7 consultation on 
the BLM RMPs in 2016, under the assumption that BLM will implement 
actions consistent with the RMPs' specific management direction over an 
analytical timeframe of 50 years (FWS 2016, p. 2). This approach 
allowed us to evaluate at a broad scale BLM's plans to ensure that the 
management direction and objectives are consistent with the 
conservation of listed species. We found that the BLM's plans, at the 
programmatic scale, were not likely to jeopardize the continued 
existence of the northern spotted owl, or destroy or adversely modify 
the owl's designated critical habitat (FWS 2016).
    In our July 20, 2021, proposed revision to the critical habitat 
designation, we explained that Federal actions in the Harvest Land Base 
that may affect designated critical habitat require section 7 
consultation at the project-level scale. As discussed further below in 
Consideration of Impacts Under Section 4(b)(2) of the Act, based on our 
experience in project consultations since the BLM 2016 RMPs were 
implemented, addressing effects to designated critical habitat in the 
Harvest Land Base provides no incremental conservation benefit over the 
conservation already provided for in the BLM RMPs (2016a, 2016b) and 
project-level consultations that still occur regardless of the presence 
of critical habitat. Thus, continuing to require BLM to include an 
analysis of effects to designated critical habitat in the Harvest Land 
Base within otherwise triggered, project-level consultations is not 
contributing to the conservation and recovery of the subspecies, nor is 
it an efficient use of limited consultation and administrative 
resources.
    With the exclusions finalized here, actions within the Harvest Land 
Base that affect northern spotted owl habitat (even if that habitat is 
no longer designated as critical) will still be subject to section 7 
consultation to ensure that actions are not likely to jeopardize the 
continued existence of the subspecies, but we are removing the 
regulatory burden to consult under section 7 to address designated 
critical habitat by excluding the Harvest Land Base. We have consulted 
on the program of timber harvest planned under the RMPs, which will 
occur primarily in the Harvest Land Base. We already determined in that 
consultation (FWS 2016) that harvest in the Harvest Land Base will not 
appreciably diminish the value of the critical habitat for the 
conservation of the northern spotted owl and that BLM's management 
approach provided under the RMPs will sustain critical habitat over 
time. Northern spotted owls are expected to continue to be able to 
disperse across the landscape due to the habitat conditions and 
protections in the Late-Successional Reserves and Riparian Reserves, 
the stand retention incorporated into the management direction for 
timber harvest in the Harvest Land Base, and because any detrimental 
effects to northern spotted owl dispersal capability will be spread 
over 50 years during which time ingrowth in the reserves will also be 
occurring. The BLM's revised 2016 RMPs included approximately 177,000 
additional acres (71, 630 hectares) of reserved lands compared to lands 
originally reserved under the NWFP in 1994; these acres contribute 
additional dispersal capability across the management area. These 
factors represent a significant improvement in the capability of the 
landscape to provide for spotted owl movement and dispersal. Given 
these provisions and assurances, in conjunction with all of the other 
considerations discussed in Consideration of Impacts Under Section 
4(b)(2) of the Act, we conclude that the benefits of including these 
Harvest Land Base areas as designated critical habitat are relatively 
minor when compared to the benefits of excluding them.
    The commenter is incorrect in stating that we do not consider 
habitat fitness in our evaluations of effects in section 7 
consultations for the subspecies in the absence of affected designated 
critical habitat. We consult on Federal actions that have effects to 
northern spotted owl habitat even if it is not designated as critical 
habitat, regardless of whether the subspecies currently occupies that 
habitat, and consider this information in our analysis of whether the 
action is likely to jeopardize the continued existence of the 
subspecies. The commenter may be confusing the question of 
``occupancy'' for consideration of whether ``incidental take'' of the 
species will occur. Even if we conclude that a Federal action that

[[Page 62619]]

adversely affects habitat does not result in a ``jeopardy'' finding for 
the species, we must still assess whether the Federal action will 
result in the incidental take of the species. Because ``take'' of the 
species is dependent in part on the Federal action proximately causing 
actual injury to the species, information about the presence or absence 
of the animal during the proposed activity (often referred to in the 
terminology of ``occupied'' versus ``unoccupied'') is particularly 
relevant. In order to evaluate whether a Federal action affecting 
northern spotted owl habitat will incidentally ``take'' that 
subspecies, we consider a number of factors, including habitat effects 
and survey results for the presence of the owl. As a result, in some 
cases we may find that adverse effects to northern spotted owl habitat 
(not designated as critical habitat) will occur, but we are unable to 
conclude with reasonable certainty that the habitat effects will result 
in incidental ``take'' of the owl. See Arizona Cattlegrower's Assn. v. 
U.S. Fish and Wildlife Serv., 273 F.3d 1229 (9th Cir. 2001).
    The commenter is correct that detectability of northern spotted 
owls is reduced when barred owls are present, which led us to endorse 
an updated protocol for surveying for northern spotted owls to take 
this into account (FWS 2012), a protocol that has been upheld on review 
by the courts (Cascadia Wildlands v. Thrailkill, 49 F. Supp. 3d 774, 
779-80 (D. Or. 2014), aff'd, 806 F.3d 1234 (9th Cir. 2015)). Our 
jeopardy analysis considers the effects to habitat regardless of 
occupancy. With the exclusions finalized today, Federal agencies will 
no longer have the obligation to consult on the effect of their actions 
to (formerly) designated critical habitat in the areas excluded. They 
will still be required to consult with us if their discretionary 
actions result in effects to northern spotted owl habitat that remains, 
and they will be precluded from jeopardizing the subspecies as a result 
of that habitat modification. We will also still continue to evaluate 
whether the Federal actions affecting habitat, even if they do not 
jeopardize the subspecies, result in the incidental take of northern 
spotted owls, and if so, will identify reasonable and prudent measures 
and terms and conditions to minimize that incidental take.
    Comment (8): Commenters expressed concern that wildlife provisions 
in the BLM RMPs do not apply in the Harvest Land Base and that the 
exclusion of critical habitat would remove overlapping protections.
    Our response: According to the 2016 BLM RMPs for western Oregon, 
the management objectives and management direction described for 
resource programs (including wildlife) apply across all land-use 
allocations, unless otherwise noted (BLM 2016a, p. 47, BLM 2016b, p. 
47). Regarding overlapping protections, see our response to Comment (7) 
for our rationale for excluding these lands from critical habitat for 
the northern spotted owl.
    Comment (9): Commenters stated that we should consider the impact 
of recent wildfires that have occurred in Washington, Oregon, and 
California on the northern spotted owl and its habitat since the 2016 
BLM RMPs were finalized, and that recent events make the modeling and 
analyses in the RMPs ineffective and obsolete. Commenters noted that 
the number of acres burned has exceeded the number of acres affected by 
wildfire that were modeled for the first decade in the BLM RMPs. 
Commenters further stated that excluding lands from critical habitat 
will lead to more regeneration logging, which will lead to increased 
fuels and uncharacteristic wildfire and that additional critical 
habitat should be designated in order to protect forests from 
regeneration harvest and further the objectives of the final recovery 
plan to provide habitat redundancy and avoid fire hazard.
    Our response: In September 2020, several major wildfires burned 
across portions of the range of the northern spotted owl in Washington, 
Oregon, and California affecting habitat conditions. The fires impacted 
multiple ownerships, including Federal lands managed by the BLM and 
USFS, State lands, and private lands. Although the wildfires that 
occurred during the fall of 2020 had significant impacts to some 
critical habitat units at the local level, the longer term impacts to 
spotted owl conservation will vary depending on fire severity (see our 
discussion in Comment (27b) regarding the use of previously burned 
habitat). Although some subunits have experienced a partial and/or 
temporary reduction in connectivity in places, overall the critical 
habitat units and the rangewide network designated in 2012 will 
continue to provide demographic support and connectivity to the 
northern spotted owl as intended in the 2012 critical habitat 
designation.
    The 2012 critical habitat rule was an increase in designated area 
compared to previous designations, in part to provide for biological 
redundancy in northern spotted owl populations and habitat by 
maintaining sufficient habitat on a landscape level in areas prone to 
frequent natural disturbances, such as the drier, fire-prone regions of 
its range (Noss et al. 2006, p. 484; Thomas et al. 2006, p. 285; 
Kennedy and Wimberly 2009, p. 565). The historical range of the 
northern spotted owl within Oregon, Washington, and California is about 
57 million acres (23 million hectares), including both Federal and non-
Federal (33 million) acres (USDA-USFS and DOI-BLM 1993, p. 23). The 
Northwest Forest Plan area, which was explicitly identified in 1994 to 
encompass the range of the northern spotted owl on Federal lands, is 
approximately 25 million acres (10 million hectares) in size and 
included 19 National Forests, 7 BLM Districts, and other Federal lands. 
The 2012 designation of 9.6 million acres (3.9 million hectares) of 
critical habitat (reduced in this revision to approximately 9.4 million 
acres (3.8 million hectares)) is a parsimonious and scientifically 
appropriate identification of only those lands within these 25 million 
acres (10 million hectares) that are critical to the conservation and 
recovery of the spotted owl.
    The 2012 designation is based upon almost three decades of 
scientific research on the spotted owl. Estimating actual historical 
forested habitat within this range is difficult, but during our 
evaluation of whether to list the northern spotted owl, we concluded 
the best available information was that some 17.5 million acres (7 
million hectares) of ``suitable'' habitat were available to the owl 
historically, before the advent of significant timber harvesting of old 
growth forests (55 FR 26114, June 26, 1990; p. 26151). When we 
initially designated critical habitat for the owl in 1992, we estimated 
that only 7.2 million acres (2.9 million hectares) of this ``suitable'' 
habitat (in this context meaning the types of older, more mature stands 
preferred by the northern spotted owl for nesting, roosting, and 
foraging when available in an area) remained on Federal lands, and most 
of it (60 percent) was in land allocations available for harvest (57 FR 
1796, January 15, 1992; p. 1799). We found in the 1992 critical habitat 
designation that the best available information was that it could all 
be removed within 25-30 years (57 FR 1796, January 15, 1992; p. 1800). 
The critical habitat revision in 2012 was built upon this scientific 
work, while also incorporating the best available updated scientific 
information and taking into account more recent concerns such as the 
barred owl invasion, climate change, and the

[[Page 62620]]

increasing impacts associated with severe wildfire.
    In the development of habitat conservation networks generally, the 
intent of spatial redundancy is to increase the likelihood that the 
network and populations can sustain habitat losses by inclusion of 
multiple populations unlikely to be affected by a single disturbance 
event. This redundancy is essential to the conservation of the northern 
spotted owl because disturbance events such as fire can potentially 
remove large areas of habitat with negative consequences for northern 
spotted owls. The evaluation process used by the Service incorporates 
the recommendations of the Revised Recovery Plan for the Northern 
Spotted Owl (FWS 2011) by addressing spatial redundancy at two scales: 
By (1) making critical habitat subunits large enough to support 
multiple groups of owl sites, and (2) distributing multiple critical 
habitat subunits within a single geographic region. This was 
particularly the case in the fire-prone Klamath and Eastern Cascades 
portions of the range.
    In summary, we acknowledge that the recent wildfires had negative 
impacts on some local northern spotted owl populations and critical 
habitat subunits and that future fires are likely to have additional 
negative impacts. However, the additional exclusions we make here 
represent a relatively small area compared with the designated areas 
that remain, and they do not appreciably diminish the conservation 
value of the designation to the northern spotted owl. These areas that 
remain in the designation will be managed in the long term for northern 
spotted owl conservation under the Northwest Forest Plan (NWFP) (USFS 
and BLM 1994a, USFS and BLM 1994b) and BLM RMPs (BLM 2016a, BLM 2016b) 
and are expected to provide an adequate amount of habitat at the 
listed-entity scale to withstand periodic natural disturbances such as 
wildfire.
    Regarding the comment that exclusions will lead to regeneration 
harvest and subsequent increased fuel load and uncharacteristic 
wildfire, we assume the Harvest Land Base will continue to be managed 
consistent with the management direction defined in the 2016 RMPs. As 
previously stated, we found in our 2016 Biological Opinion on the BLM 
RMPs (FWS 2016, p. 700) that, even with the projected timber harvest in 
the Harvest Land Base land use allocation, the management direction 
implemented under the RMPs is consistent with the Revised Recovery Plan 
for the Northern Spotted Owl (FWS 2011) and would not appreciably 
diminish the conservation value of, nor adversely modify, critical 
habitat (FWS 2016, p. 702).
    The January Exclusions Rule considered that one benefit of 
exclusion could be a lessening of the regulatory burdens for 
discretionary Federal decisions when considering management practices 
to protect forested lands from catastrophic wildfire. See our responses 
to Comments (1) and (27a) regarding section 7 consultation and the 
recommendations in our 2012 critical habitat rule for fuels management 
and dry forest restoration projects.
    Comment (10): A commenter expressed concern that habitat for the 
northern spotted owl will not grow as projected in the Recovery Plan 
and the BLM RMPs due to climate change and the combined effects of 
increased fire, insects, disease, storms, and carbon enrichment. 
Commenters stated that the exclusions will lead to more logging and 
greenhouse gas emissions and that mitigating the risks of climate 
change requires greater conservation of northern spotted owl habitat, 
particularly older forests that store significant amounts of carbon; 
therefore, these additional exclusions should not be made.
    Our response: As mentioned earlier, the 2012 spotted owl critical 
habitat designation was enlarged from previous designations, in part to 
provide increased redundancy in the face of climate change. We analyzed 
climate change and its potential impact on spotted owl recovery in the 
Revised Recovery Plan for the Northern Spotted Owl (FWS 2011). We noted 
the combined effects of climate change and past management practices 
are altering forest ecosystem processes and dynamics (including 
patterns of wildfires, insect outbreaks, and disease) to a degree 
greater than anticipated in the NWFP. The Recovery Plan encourages land 
managers to consider this uncertainty and how best to integrate 
knowledge of management-induced landscape pattern and disturbance 
regime changes with climate change when making spotted owl management 
decisions. The Recovery Plan further recommended an adaptive management 
approach to reduce scientific uncertainties. Recovery Action 5 in the 
Recovery Plan for the Northern Spotted Owl states: ``Consistent with 
[Secretarial] Order 3226, as amended, the Service will consider, 
analyze and incorporate as appropriate potential climate change impacts 
in long-range planning, setting priorities for scientific research and 
investigations, and/or when making major decisions affecting the 
spotted owl'' (FWS 2011, p. III-11). The Recovery Plan acknowledged the 
uncertainty associated with estimating rates of habitat recruitment 
(FWS 2011, p. B-8).
    The BLM RMPs state that if the need for adaptive management to 
address changes in the climate would so alter the implementation of 
actions consistent with the RMPs that the environmental consequences 
would be substantially different than those anticipated in the Proposed 
RMP/Final Environmental Impact Statement, then the BLM would engage in 
additional planning steps and procedures under the National 
Environmental Policy Act (NEPA) (BLM 2016a, p. 111). Additionally, the 
effects of climate change will be considered in the development of 
forest management actions and analyzed in future NEPA analyses and 
section 7 consultations at the project level.
    The BLM may also apply adaptive management by taking additional 
planning steps and NEPA procedures based on information found through 
the monitoring questions (Appendix B) (BLM 2016a, p. 111; BLM 2016b, p. 
133). The late-successional and old-growth ecosystems effectiveness 
monitoring program characterizes the status and trend of older forests 
to answer the basic question: Is implementation of the BLM RMPs 
maintaining and restoring late-successional and old-growth forest 
ecosystems to desired conditions on Federal lands in the planning area? 
(BLM 2016a, p. 116; BLM 2016, p. 138). Effectiveness monitoring reports 
will also include analysis of whether the BLM is achieving desired 
conditions based on effectiveness monitoring questions and, where 
possible, inform adaptive management (BLM 2016a, p. 111; BLM 2016b, p. 
139). As discussed further in our response to Comment (33), we 
established benchmarks in our biological opinion on the BLM's RMPs for 
evaluating the effectiveness of their program.
    In sum, BLM's RMPs are consistent with the Recovery Plan 
recommendations for addressing uncertainty, and provide the tools for 
adaptive management if needed to address effects from climate change. 
The Harvest Land Base exclusions finalized here will not impair that 
adaptability.
    Comment (11): Commenters asserted that our statement in the 
proposed rule that the proposed exclusion provides ``no incremental 
conservation benefit over what is already provided for in the RMPs'' 
conflicts with the Service's prior finding that the owl ``fared very 
poorly''

[[Page 62621]]

on reserves within the NWFP compared to designated critical habitat.
    Our response: The statement concerning ``reserves faring very 
poorly'' in the 2012 critical habitat rule was in reference to a 
modeling scenario where we tested population performance of a potential 
critical habitat designation based on only NWFP reserves. Our 2012 
designation was not based on this modeling scenario. The critical 
habitat designation retains northern spotted owl habitat in reserve 
land-use allocations, and retains northern spotted owl habitat in the 
matrix and some non-Federal public lands that we found essential to the 
conservation of the subspecies. The designation of these lands was 
supported by our statement in the 2012 critical habitat rule: ``In some 
areas, for example the O&C lands, our modeling results indicated that 
those Federal lands make a significant contribution toward meeting the 
conservation objectives for the northern spotted owl in that region, 
and that we cannot attain recovery without them. Likewise, in addition 
to our modeling results, peer review of both the Revised Recovery Plan 
for the Northern Spotted Owl (FWS 2011) as well as our proposed rule to 
revise critical habitat, suggested that retention of high-quality 
habitat in the matrix is essential for the conservation of the 
subspecies. Population performance based on reserves under the NWFP, 
for example, fared very poorly compared to this final designation of 
critical habitat. As described in the section Changes from the Proposed 
Rule, we tested possible habitat networks without many of these matrix 
lands, which resulted in a significant increase in the risk of 
extinction for the northern spotted owl.'' (77 FR 71876, December 4, 
2012; p. 72007).
    We are excluding the portion of O&C lands (approximately 172,712 
acres (69,894 hectares)) allocated by the BLM to the Harvest Land Base. 
The remaining O&C lands under USFS and BLM management (1,209,229 acres 
(489,357 hectares)) are retained within the critical habitat 
designation in this final rule. We have determined that the benefits of 
exclusion of the Harvest Land Base land outweigh the benefits of 
including these areas, and that exclusion of these lands will not 
result in the extinction of the northern spotted owl. See our 
discussion of the benefits of exclusion versus inclusion of Harvest 
Land Base lands in Consideration of Impacts Under Section 4(b)(2) of 
the Act.
    Comment (12): Commenters expressed concern that the BLM RMPs that 
we rely on for our basis for exclusions could be vacated due to current 
litigation and that the protection in place under the 2016 RMPs would 
no longer apply.
    Our response: A district judge in the U.S. District Court for the 
District of Columbia found that the BLM RMPs violate the O&C Act 
because BLM excluded portions of O&C timberland from sustained yield 
harvest (i.e., the BLM allocated some timberlands to reserves instead 
of the Harvest Land Base); see, American Forest Resource Council et al. 
v. Hammond, 422 F.Supp.3d 184 (D.D.C. 2019). Although a decision as to 
remedy has not yet been issued, depending on the final outcome of that 
litigation, the Harvest Land Base might change through court order or 
land use planning by BLM. We have excluded lands based on the BLM RMPs 
as they are, not as they may be modified in the future. See also our 
response to Comment 25(b), below, and our reconsideration of the 
weighing of the benefits of inclusion versus the benefits of excluding 
these lands and our extinction analysis in Consideration of Impacts 
Under Section 4(b)(2) of the Act.
Public Comments on Competition From Barred Owls
    Comment (13): Commenters expressed the importance of preserving 
mature and old-growth forest for spotted owls in light of competition 
with barred owls and stated that the Service has not fully explored how 
much more habitat needs to be conserved to mitigate for northern 
spotted owl habitat occupied by barred owls. Commenters stated that 
reducing critical habitat will increase the probability of competitive 
exclusion and that we should not reduce critical habitat without a 
barred owl management plan in place.
    Our response: In addition to the effects of historical and ongoing 
habitat loss, the northern spotted owl faces a significant and complex 
threat in the form of competition from the congeneric (referring to a 
member of the same genus) barred owl (FWS 2011, pp. I-7 to I-8). 
Franklin et al. (2021) found that spotted owl populations declined 6 to 
9 percent annually on 6 demographic study areas and 2 to 5 percent 
annually on 5 study areas. Applying the annual rates of decline, 
populations dropped to or below 35 percent of the historical population 
on 7 of the study areas, and to or below 50 percent on the remaining 3 
areas over a 22-year period (1995-2017). The presence of barred owls on 
spotted owl territories was the primary factor negatively affecting 
apparent survival, recruitment, and thus the population change, and was 
a contributing factor in our recent determination that the subspecies 
warranted reclassification to endangered status.
    An analysis of occupancy based on northern spotted owl and barred 
owl detections supported the conclusion that barred owl presence has a 
negative effect on northern spotted owls, increasing territorial 
extinction and decreasing territorial colonization of spotted owls. 
While barred owl occupancy was the dominant negative effect on spotted 
owl territory occupancy and population trend, other factors such as 
habitat condition had a weaker, but positive, effect on occupancy and 
trend. These other factors such as habitat were insufficient to reverse 
the negative trend, but suggest the importance of maintaining spotted 
owl habitat on the landscape, even if it is unoccupied, in the face of 
competitive exclusion by barred owls, as noted by Dugger et al. 2011. 
The authors in Franklin et al. (2021) noted that maintenance of habitat 
across the landscape would (1) provide areas available for 
recolonization by northern spotted owls should management actions allow 
for reduction of barred owl populations and (2) facilitate connectivity 
by dispersing northern spotted owls among occupied areas, citing to 
Sovern et al. 2014. The authors stated, ``Our analyses indicated that 
northern spotted owl populations potentially face extirpation if the 
negative effects of barred owls are not ameliorated while maintaining 
northern spotted owl habitat across their range.'' (Franklin et al., 
2021, p. 19)
    The Service conducted experimental removal of barred owls to test 
its efficacy in improving spotted owl demographic performance on four 
study areas spread across the northern spotted owl range in Washington, 
Oregon, and northern California. Peer-reviewed analysis of the 
experiment (Wiens et al. 2021) showed a strong, positive effect of 
barred owl removal on survival of spotted owls in the treated areas and 
a weaker but positive effect on spotted owl dispersal and recruitment. 
The estimated mean annual rate of population change for spotted owls 
stabilized in areas with removals (0.2 percent decline per year), but 
continued to decline sharply in areas without removals (12.1 percent 
decline per year). Barred owl removal had a strong positive effect on 
spotted owl survival, which was the primary factor in stabilizing the 
populations. Barred owl removal also demonstrated a weaker, though 
still positive, effect on recruitment of new spotted owls to the 
territorial populations. This weaker

[[Page 62622]]

response is probably due to the depressed reproduction in recent years 
and the subsequent limited availability of new recruits. The experiment 
demonstrated that barred owl removal can achieve rapid results in 
improving the persistence of northern spotted owls, though effects on 
reproduction and long-term population trend will take a longer period 
of management effort.
    These two analyses (Wiens et al. 2021, and Franklin et al. 2021) 
indicate that, while barred owl presence was the primary and strongest 
driver of spotted owl population trend leading to the rapidly 
decreasing spotted owl populations, habitat availability and quality 
were important components of managing for the survival and recovery of 
spotted owls in the future. The Service is in the process of developing 
a barred owl management strategy, using the information from both of 
these studies.
    Similar to our response above to the comment suggesting the need 
for increased habitat redundancy in the face of catastrophic wildfire, 
we find that the critical habitat designation, which includes more area 
than what was previously designated in 1992 and 2008, is consistent 
with the Revised Recovery Plan for the Northern Spotted Owl (2011) and 
provides for the conservation of northern spotted owls as they face 
growing competition from barred owls. The exclusions we finalize here 
are not of a scale to appreciably affect that approach. See also our 
discussion of our analysis in the biological opinion on BLMs RMPs and 
their approach to barred owl management in our responses to Comments 
(15, 18, and 33).
Other Public Comments
    Comment (14): Commenters asked why regulatory oversight of critical 
habitat is no longer necessary in light of the Service's previous 
position that old-growth reserves of the Northwest Forest Plan ``are 
plan-level designations with less assurance of long-term persistence 
than areas designated by Congress. Designation of Late-Successional 
Reserve) as critical habitat complements and supports the Northwest 
Forest Plan and helps to ensure persistence of this management 
directive over time'' as well as the Service's prior statements that 
critical habitat has significant additional value to listed species 
separate from any value provided by land management plans. Commenters 
further stated that our previous position is in contrast to our 
statement in the proposed rule that these exclusions are to ``clarify 
the primary role of these lands in relation to northern spotted owl 
conservation,'' and ``eliminat[e] any unnecessary regulatory 
oversight.''
    Our response: In this final rule, we are not excluding lands within 
reserve land use allocations from the critical habitat designation. Our 
exclusion of the Harvest Land Base lands managed by BLM is based on new 
information since the December 4, 2012, critical habitat designation 
(77 FR 71876), i.e., the 2016 BLM RMPs and our evaluation of those RMPs 
through the section 7 consultation process. As described earlier, the 
lands we exclude in this final rule were already reviewed for their 
value to long-term spotted owl conservation in the 2016 Biological 
Opinion on the BLM RMPs, and the RMPs provide a robust long-term 
conservation strategy that is consistent with the goals of the 2011 
Revised Recovery Plan for the Northern Spotted Owl (FWS 2011) and the 
2012 critical habitat designation.
    The January Exclusions Rule, in justifying the exclusion of 3.4 
million acres (1.4 million hectares), stated that even on excluded 
lands, all discretionary Federal actions and decisions on areas that 
are occupied by the subspecies will be required to undergo section 7 
consultation if such action or decision ``may affect'' the northern 
spotted owl and that such consultation will ensure that the continued 
existence of the northern spotted owl is not jeopardized. See our 
further review of these statements in our response to Comment (3) and 
our reconsideration of the weighing of the benefits of inclusion versus 
the benefits of excluding these lands and our extinction analysis in 
Consideration of Impacts Under Section 4(b)(2) of the Act.
    Comment (15): Commenters stated that when the critical habitat 
designation was originally established, it was understood that much of 
the old forest reserves would require considerable time to recover old-
growth characteristics and support northern spotted owl reproduction, 
having been subject to logging prior to 1990 and that critical habitat 
should not be reduced until the reserve system is fully restored. The 
commenters asserted that much of the occupied habitat in the Harvest 
Land Base would need to be left unlogged during the intervening time, 
to assure an ecologically sustainable continuity of old-growth forest, 
with no significant net loss.
    Our response: In our 2016 Biological Opinion on the BLM RMPs, we 
concluded that there will be a net increase in habitat for northern 
spotted owls during the life of the RMPs due to forest ingrowth 
outpacing harvest, and the RMPs containing more reserve acres and 
habitat than the NWFP (FWS 2016, p. 5). During the first 5 to 8 years 
of the RMPs, the BLM will implement measures to avoid take of northern 
spotted owls until implementation of a barred owl management program 
has begun. In addition, subsequent effects to northern spotted owls 
would be meted out over time in the Harvest Land Base and minimized in 
other land use allocations. These measures in the RMPs will minimize 
near-term negative effects to occupied northern spotted owl habitat in 
the Harvest Land Base as habitat continues to further develop late-
successional characteristics in the reserve land use allocations.
    Comment (16): Commenters stated that our proposal to exclude the 
Harvest Land Base lands ignores the northern spotted owl Recovery Plan 
recommendation to protect older, complex forests on Federal lands west 
of the crest of the Cascades range.
    Our response: We relied on the recovery criteria set forth in the 
Revised Recovery Plan for the Northern Spotted Owl (FWS 2011) to 
determine what is essential to the conservation of the subspecies and 
identified a critical habitat designation that ensures sufficient 
habitat to support stable, healthy populations across the range and 
within each of the 11 recovery units.
    The Revised Recovery Plan for the Northern Spotted Owl relies on 
the NWFP's Late-Successional Reserve network as the foundation for 
northern spotted owl recovery on Federal lands (FWS 2011, p. III-41). 
The revised plan recommended ``continued application of the reserve 
network of the NWFP until the 2008 designated spotted owl critical 
habitat is revised and/or the land management agencies amend their land 
management plans taking into account the guidance in this Revised 
Recovery Plan'' (FWS 2011, p. II-3). BLM's 2016 revision of its RMPs 
fully considered the 2011 Recovery Plan recommendation.
    The BLM RMPs provide protection to older, complex forests through 
the system of reserves. Reserve land use allocations (Late-Successional 
Reserve, Congressionally Reserved Lands and National Conservation 
Lands, District-Designated Reserves, Riparian Reserve) comprise 74.6 
percent (1,847,830 acres (747,790 hectares)) of the acres of BLM land 
within land use allocations (FWS 2016, p. 9). These lands are managed 
for various purposes, including preserving wilderness areas, natural 
areas, and structurally complex forest; recreation management; 
maintaining facilities and infrastructure; some timber harvest and 
fuels management; and conserving lands

[[Page 62623]]

along streams and waterways. Of these lands, 51 percent (948,466 acres 
(383,830 hectares)) are designated as Late-Successional Reserve, 64 
percent of which (603,090 acres (244,061 hectares)) are located within 
the critical habitat designation for the northern spotted owl (FWS 
2016, p. 9). The management objectives on Late-Successional Reserve are 
designed to promote older, structurally complex forest and to promote 
or maintain habitat for the northern spotted owl and marbled murrelet 
(Brachyramphus marmoratus). In this final rule, we are not excluding 
lands within reserve land use allocations from the critical habitat 
designation.
    The January Exclusions Rule stated that ``the correct analysis for 
purposes of section 4(b)(2) is whether the Secretary concludes that the 
specific exclusion of these areas of critical habitat will result in 
the extinction of the species.'' We agree with this statement; however, 
see our reconsideration of the weighing of the benefits of inclusion 
versus the benefits of excluding these lands and our extinction 
analysis in Consideration of Impacts Under Section 4(b)(2) of the Act.
    Comment (17): Commenters expressed concern that excluding critical 
habitat will impede recovery of the northern spotted owl and that we 
should not exclude areas that contain sites with a history of northern 
spotted owl reproduction.
    Our response: In our 2016 Biological Opinion on the 2016 Revised 
BLM RMPs, we found that the conservation needs of the northern spotted 
owl will continue to be met because the BLM's plan is consistent with 
the guidance of the northern spotted owl Recovery Plan, at the 
landscape scale over 50 years, as follows:
    <bullet> The BLM RMPs will conform to the northern spotted owl 
Recovery Plan, including the location and function of large blocks of 
habitat for reproducing spotted owls and the ability of the landscape 
to support spotted owl movement between those blocks.
    <bullet> The BLM RMPs will include approximately 177,000 more acres 
(71,629 hectares) of Late-Successional Reserve and Riparian Reserves 
than in the NWFP, which will be managed for the retention and 
development of large trees and complex forests across the RMP 
landscape.
    <bullet> The BLM RMPs will improve the amount, quality, and 
distribution of nesting habitat on BLM lands over the first 50 years 
modeled under the RMPs through management of these increased reserves.
    <bullet> The BLM RMPs will facilitate and improve northern spotted 
owl dispersal capability across the landscape through the management of 
the increased reserves.
    Given the management, spatial configuration, and projected 
improvement of habitat in the reserves, we find that excluding the 
Harvest Land Base lands will not preclude recovery of the northern 
spotted owl if the 2016 RMPs are implemented as described. In addition, 
the Indian lands excluded herein represent only 0.21 percent of the 
overall designation; we have found that we can achieve the conservation 
of the northern spotted owl by limiting the designation to other lands.
    The January Exclusions Rule determined that the exclusion of 3.4 
million acres (1.4 million hectares) from the critical habitat 
designation outweighed the benefits of inclusion, and that, based upon 
the best scientific and commercial data available, it did not conclude 
that exclusion of those areas will result in extinction of the 
subspecies. See our reconsideration of the weighing of the benefits of 
inclusion versus the benefits of excluding these lands and our 
extinction analysis in Consideration of Impacts Under Section 4(b)(2) 
of the Act.
    Comment (18): Commenters expressed concern that the downward trend 
in northern spotted owl populations has continued since the 2016 BLM 
RMPs were finalized, and that we should evaluate the 2020 meta-analysis 
(demographic analyses that are performed every 5 years under the NWFP) 
prior to making changes in the critical habitat designation. Commenters 
further expressed concern that we should be conserving more habitat in 
light of the Service's recent finding that the northern spotted owl 
warrants reclassification to endangered status.
    Our response: The most recent meta-analysis, Franklin et al. 
(2021), found that the northern spotted owl continues to suffer a 
significant population decline across its range, due primarily in 
recent years to increasing competition from the invasive and aggressive 
barred owl. Unless barred owls are proactively managed while also 
maintaining northern spotted owl habitat across the range, northern 
spotted owls are likely to become extirpated across portions of their 
range (Franklin et al. 2021, pp. 18-19).
    We find the BLM RMPs provide an approach that minimizes negative 
impacts to spotted owls and offsets these impacts with proactive 
positive actions providing for the long-term survival and recovery of 
the northern spotted owl. When considered in its entirety, 
implementation of the BLM RMPs will have both negative and positive 
effects on the northern spotted owl. Negative impacts will primarily be 
due to resource utilization such as timber harvest on less than one-
quarter of the BLM land base, and other resource programs. Positive 
effects of the plan will accrue due to the following: An increase in 
the total area of protected forest reserves on BLM lands (approximately 
80 percent of BLM ownership); BLM's management of forest habitat to 
increase the rate of development of late-successional conditions; and 
BLM's support for, and cooperation in, the barred owl removal 
experiment and a potential barred owl management program (see our 
response to Comment (13) regarding the completion of the barred owl 
removal experiment and the development of a barred owl management 
program). When aggregating these negative and positive impacts with the 
environmental baseline, it is our conclusion that the impact of the BLM 
RMPs will be a net conservation gain for the northern spotted owl 
during the next 50 years under the plans.
    Over the 50-year life of the BLM RMPs (BLM 2016a, BLM 2016b), there 
will also be a significant net gain over current levels in spotted owl 
habitat largely within reserves that will be managed to maintain and 
produce high-quality spotted owl habitat of the kind preferred by owls 
for nesting, roosting, and foraging when available in an area. This 
increase will provide large blocks of habitat of Federal land capable 
of supporting more than 25 spotted owl pairs. Spotted owl dispersal 
through these areas also will continue to be facilitated and is 
expected to improve over time under BLM's management.
    Although impacts to spotted owl habitat in the Harvest Land Base 
were anticipated, wherever possible those impacts will be spread out 
over time to minimize site abandonment as a barred owl management 
strategy is implemented. Given this, and the landscape of reserves 
providing for blocks of habitat and northern spotted owl movement 
consistent with the recovery needs of the spotted owl, we concluded the 
BLM RMPs will not appreciably diminish the ability of the BLM lands to 
provide for a well-distributed population of owls.
    Because of the expected retention and improvement of northern 
spotted owl populations on BLM lands, the Service concluded that 
implementation of the BLM RMPs would not represent an appreciable 
reduction in the likelihood of survival and recovery of the northern 
spotted owl in the wild due to

[[Page 62624]]

reductions in reproduction, numbers, or distribution (FWS 2016, p. 
624). BLM's commitment to participate in and support a barred owl 
management strategy, combined with the RMPs' allocation of reserves, is 
projected to result in a significant improvement in the northern 
spotted owl population's trend, and in the reproduction, numbers, and 
distribution over projected baseline conditions with no barred owl 
management and no timber harvest.
    Comment (19): Commenters stated that the BLM and Service cannot 
avoid their duties under the ESA simply because the area in question 
involves O&C lands and that section 4(b)(2) exclusions should not be 
used as a tool to circumvent section 7 consultation recommendations.
    Our response: Our rationale for excluding the Harvest Land Base is 
not to circumvent section 7 consultation, nor because the area in 
question involves O&C lands. Rather, we have concluded based on our 
programmatic review in our Biological Opinion on the BLM 2016 RMPs, and 
our experience in project consultations since the BLM 2016 RMPs were 
implemented, that addressing effects to designated critical habitat in 
the Harvest Land Base provides no incremental conservation benefit over 
the conservation already provided for in the BLM RMPs (2016a, 2016b) 
and project-level consultations that still occur regardless of the 
presence of critical habitat. Thus, continuing to designate critical 
habitat in order to require BLM to include effects to critical habitat 
designated in the Harvest Land Base within otherwise triggered, 
project-level consultations is not contributing to the conservation and 
recovery of the subspecies, nor is it an efficient use of limited 
consultation and administrative resources.
    The January Exclusions Rule stated because there will continue to 
be section 7 consultations for discretionary actions in areas where the 
spotted owl occurs, we have concluded that the additional regulatory 
requirement related to review for adverse modification is outweighed by 
other relevant factors. See our response to Comment (3) concerning 
section 7 consultations and our reconsideration of the weighing of the 
benefits of inclusion versus the benefits of excluding these lands and 
our extinction analysis in Consideration of Impacts Under Section 
4(b)(2) of the Act.

Economic Analysis Comments

Comments From Counties
    Comment (20): Several counties requested that the Service undertake 
a new economic analysis to reconsider the economic impacts of the 2012 
designation on local communities and natural resource-based economies.
    Our response: We reviewed the FEA (IEc 2012) conducted for the 
December 4, 2012, critical habitat designation (77 FR 71876) as well as 
additional information submitted during the public comment period. We 
also conferred with the economists who prepared the FEA regarding the 
additional information submitted (IEc 2020). See our response to 
Comment (21) below for further detail. In general, we found that the 
commenters disagree with the Service's incremental methodology used to 
analyze the economic effects of the critical habitat designation for 
northern spotted owl, although that approach was the Service's policy 
at the time and has since been codified in its regulations; see 50 CFR 
424.19(b)). In addition, because the January Exclusions Rule has not 
gone into effect and we are only excluding (i.e., removing) additional 
areas from critical habitat, the economic impact will be further 
reduced from that analyzed in 2012 and a new economic analysis is not 
necessary. Even if the January Exclusions Rule were to go into effect, 
an entirely new economic analysis would not be required for this final 
rule because (1) this rule does not designate any new areas that were 
not included in the 2012 critical habitat designation and analyzed in 
the 2012 FEA; (2) the 2012 FEA estimated potential incremental economic 
impacts of the 2012 designation over a 20-year timeframe, which has not 
yet ended as of the date of this final rule; and (3) the Service has 
considered the updated economic-impact information provided by 
commenters, as discussed more fully below. The Service has fully 
considered the economic impacts of this final rule, consistent with the 
requirements of ESA Section 4(b)(2).
    The January Exclusions Rule stated that our FEA completed in 2012 
(IEc 2012) in combination with a new report prepared by the Brattle 
Group (2020) (Brattle Report) continue to be the best scientific and 
commercial data available; we no longer find this to be the case as 
discussed in our response to Comment (21) addressing IEc's review of 
and our concerns with information contained in the Brattle Report (IEc 
2020, IEc 2021).
    Comment (21): The AFRC (AFRC 2020; AFRC 2021) provided public 
comments requesting that the Service exclude at least 2,515,491 
additional acres (1,017,983 hectares) in addition to the 204,653 acres 
(82,820 hectares) proposed for exclusion. The AFRC provided the Brattle 
Report critiquing our FEA and a supplement to the Brattle Report 
(Brattle supplement) responding to our responses to comments in the 
January Exclusions Rule (The Brattle Group 2021). The Brattle Report 
included updated estimates of the economic impacts of the 2012 rule 
using more recent data and/or different assumptions. The Oregon Farm 
Bureau and Oregon Cattlemen's Association; California Farm Bureau 
Federation; Lewis, Skamania, and Klickitat Counties in Washington; and 
Douglas County in Oregon also cited the Brattle Report and/or 
supplement in their comment letters as justification for additional 
exclusions. We summarize AFRC and other comments pertaining to economic 
analysis issues in the following:
    (a) A focus of the Brattle Report and supplement (referred to as 
reports here) is a review of our analysis of potential timber harvest 
losses attributable to northern spotted owl critical habitat 
designation in 2012. The Brattle reports follow the same analytic 
approach for measuring timber harvest impacts as employed in the 
economic analysis for the critical habitat designation (IEc 2012), but 
use alternative assumptions or updated inputs. These adjustments yield 
the following differences when compared to the results of the FEA (see 
IEc 2020 for more details):
    <bullet> The number of acres where incremental harvest impacts may 
occur is higher;
    <bullet> The baseline annual harvest potential is higher;
    <bullet> The potential reductions in harvest volumes due to the 
impact of critical habitat are larger; and
    <bullet> The estimated stumpage values are lower.
    As described by IEc in their review of this information (IEc 2020, 
2021), the effect of these changes in inputs by the Brattle reports is 
a higher measure of the negative annualized timber harvest impacts 
across the affected acres, i.e., a projection of greater economic 
effects. The Brattle reports assert that, across 1.7 million acres 
(687,966 hectares), the critical habitat designation greatly diminishes 
harvest and causes losses to the market of between $66.4 million and 
$77.2 million (or between $66.4 million and $85.4 million per the 
supplement) on an annualized basis, and between $753 million and $1.18 
billion (or between $869 million and $1.31 billion per the supplement) 
over 20 years on a net present value (NPV) basis. AFRC and others 
suggest the results of the

[[Page 62625]]

Brattle reports support their request for exclusion of additional acres 
based on economic impacts.
    Our response: We find several issues with the analysis provided in 
the Brattle reports, specifically the assumptions or data used to 
produce the estimate of negative annualized timber harvest impacts due 
to the critical habitat designation, and we do not agree with their 
ultimate conclusions.
    First, the Brattle reports state that the higher number of acres 
where incremental impacts may occur is based upon a review of GIS files 
and other related information. Their estimated acreage of lands 
affected changed considerably between the Brattle Report and 
supplement. However, the supplement provides no clear basis for this 
increase. We asked IEc to review the Brattle reports, and they 
concluded that they could not replicate the result, but determined that 
the magnitude of differences in the acreages identified in the reports 
versus those identified in our FEA are unlikely to substantially alter 
the ranking of potential impacts by subunit. The Brattle reports 
provide retrospective impacts by subunit, but do not provide a 
composite ranking. In contrast, our FEA included an analysis of 
acreages by subunit where impacts may occur, scored these areas by the 
potential extent of impact, and then ranked each subunit according to a 
composite score against all other subunits (see Section 4.3 of IEc 
2012).
    Second, the Brattle reports assume a much higher baseline annual 
harvest potential on USFS and BLM lands (a more than five-fold 
increase) than the best available information indicates is likely. We 
understand that the reports relied on average yields from a short time 
period of harvest data (2018-2020) on lands managed by BLM for moist 
and dry forests and then translated these harvest levels into estimates 
of long-term annual yields across the acres where the reports assume 
incremental impacts may occur. Based on comments from AFRC, the reports 
also assume similar yields on BLM and USFS lands, a standard rotation 
age of 100 years where one percent of the land would be regeneration-
harvested, and one percent would be thinned. The assumptions are at 
best hypothetical and not widely applicable. The BLM and USFS are 
unlikely to have similar yields generally for a variety of reasons, 
including that there is no standard of a 100-year rotation age or one 
percent regeneration harvest used by either agency for all of their 
managed lands. The USFS and BLM apply ``uneven-aged'' stand management, 
rather than ``even-aged'' stand rotations, on many of these areas to 
meet multiple use goals such as wildfire risk reduction, recreation, 
forest restoration, and biodiversity conservation, especially in drier 
portions of the range. In contrast, we based our yield rates on actual 
harvest data provided by the BLM and USFS over an extended period (IEc 
2012). For lands managed by BLM, the FEA used data BLM provided on 30 
years of planned timber harvest by land allocation type (reserve/
matrix), forest conditions (nesting/roosting habitat, predominantly 
younger forests), and harvest type (thinning, regeneration) at the 
critical habitat subunit level. For lands managed by USFS, our FEA used 
projected yield rates provided by the USFS for each critical habitat 
unit.
    Third, the Brattle reports assume an 80 percent reduction in 
harvest volumes due to the critical habitat designation versus the 20 
percent used in the FEA high-impact scenario. The reports indicate that 
the assumption of an 80 percent reduction in harvest volumes is based 
on discussions with AFRC and unspecified comments provided by the USFS 
and BLM on the 2012 economic analysis. As a result, it is unclear on 
what basis the Brattle reports assume an 80 percent reduction in 
harvest volumes. The most likely cause is by improperly conflating the 
impact that the listing of the northern spotted owl in 1990 and other 
economic and logistical factors had on timber harvest with the 
incremental effect of the subsequent designation of critical habitat, 
particularly in areas that are currently unoccupied by the subspecies.
    The Brattle Report also noted that it ``cannot model the timber 
markets that influence the demand for timber in the Pacific Northwest'' 
to test the reasonableness of its assumption concerning timber harvest 
effects (The Brattle Group 2020, p. 17). The potential incremental 
effect of critical habitat on harvest levels was a point of significant 
debate for the 2012 critical habitat designation (see section 4.4.2 of 
the FEA). As IEc notes in its assessment of the Brattle Report, 
``Various land managers, Service experts, and other commenters 
concluded that the direction and magnitude of effect due to critical 
habitat was uncertain, noting that harvest levels could be higher or 
lower depending on a variety of land management considerations and 
harvest factors. In addition, the implementation of timber harvest in 
critical habitat occurs within a complex set of factors, including 
volatility in global demand for wood products, general timber industry 
transformation, and existing regulatory and statutory requirements, 
among other factors.'' The FEA used three separate scenarios, along 
with additional sensitivity analysis to capture this uncertainty and 
the concerns of multiple stakeholders, including BLM and USFS. ``The 
Brattle report does not endeavor to model markets or other factors that 
influence the demand for timber in the Pacific Northwest'' (IEc 2020). 
The Brattle Report did not include a sensitivity analysis to address 
the uncertainty of effects associated with critical habitat.
    Fourth, concerning estimated stumpage values, as IEc noted in their 
review, our FEA ``recognized that prices vary across forest, land 
manager, and year, and that future prices were uncertain. The analysis 
captured annual average prices from Federal timber sales on BLM and 
USFS managed lands between 2000 and 2011. The low-end price ($100 per 
thousand board feet (mbf)) was similar to more recent prices (as of 
2012) from Federal timber sales, which had been below historical 
averages. The higher end was selected to purposely capture the highest 
price received since the year 2000. This high price, therefore, served 
as a conservative approach, meaning it would yield the highest negative 
impacts from any constraints on timber harvest volumes due to critical 
habitat designation. Beyond this range, the 2012 economic analysis 
conducted a further sensitivity analysis based upon a comment received 
from AFRC. In this scenario, an even higher price of $350 per mbf was 
analyzed for its effect and included in the economic analysis. Thus, 
the original range and further sensitivity analysis captured a 
reasonable upper and lower bound of the role of timber prices on 
potential impacts. In contrast, the Brattle report uses similar average 
stumpage prices from similar sources, but only from 2018 to 2020, a 
much shorter time frame. In addition, its price range of $83 to $191 
per mbf is consistent with the price range used in the 2012 report, 
especially when considering the passage of eight years and the general 
market volatility of lumber prices.'' (IEc 2020).
    In sum, the Brattle reports and associated commenters concluded 
that the total effect of these alternative inputs is a higher measure 
of negative annualized timber harvest impacts across the total of 
potentially affected acres compared to what was estimated in the FEA 
(IEc 2012) ($66 to $77 million estimated in the Brattle Report, $66 to 
$85 million in the supplement, versus $6.5 million in the FEA). As 
noted above, the Brattle supplement added the distribution of its 
overall measure of impacts across the designation's subunits. 
Understanding

[[Page 62626]]

relative impacts by discrete areas of critical habitat is a necessary 
aspect of an accurate benefits-weighing process. We note that the 
Brattle reports include additional conclusions, such as effects on 
Gross Domestic Product and employment. However, these conclusions are 
based on the assumptions we discuss above, which are misapplied or 
cannot be confirmed with the methods provided. Therefore, for the 
reasons discussed above, we do not consider the Brattle reports to be 
the best scientific and commercial data available, and we do not agree 
with the conclusions of the Brattle reports and the comments that rely 
on them. More specific analysis of the Brattle reports can be found in 
our record on this rulemaking (IEc 2020, 2021).
    The January Exclusions Rule considered the negative economic 
impacts on rural communities of the critical habitat designation and 
the listing of the northern spotted owl in its weighing of the benefits 
of excluding 3.4 million acres against the benefits of inclusion and 
concluded that the benefits of exclusion outweighed the benefits of 
inclusion. We do not now find these conclusions to be appropriate; see 
our reconsideration of the weighing of the benefits of inclusion versus 
the benefits of excluding these lands and our extinction analysis in 
Consideration of Impacts under Section 4(b)(2) of the Act.
    (b) The Brattle Report included information on annual timber 
harvest levels on Federal lands in 18 counties within California, 
Oregon, and Washington, from 2002 through 2018. The report concluded 
that these data demonstrate that timber harvest in these counties 
declined as a direct consequence of the 2012 critical habitat 
designation.
    Our response: We acknowledge that the listing of the northern 
spotted owl in 1990, in addition to other social and economic factors, 
affected timber industry employment and establishments (Ferris and 
Frank 2021, p. 12). However, we have reviewed the information in the 
Brattle Report and found significant errors and unsubstantiated 
assumptions.
    First, 4 of the 18 counties cited in the analysis (Calaveras, 
Riverside, and Mono in California, and Morrow in Oregon) are located 
outside of the range of the northern spotted owl and do not contain 
designated northern spotted owl critical habitat, so the designation 
would not have impacted timber harvest in these counties. The Brattle 
supplement states that this information was provided for context, 
although it does not explain how referencing this context aids in 
assessment of impacts from the northern spotted owl. In fact, the data 
from these counties document that timber harvest and related economic 
patterns were concurrently volatile in rural counties outside the range 
of the spotted owl, suggesting larger market forces were impacting 
timber markets both within and outside the range of the owl.
    Second, of the remaining 14 counties cited in the report that 
contain some spotted owl critical habitat, the Brattle reports describe 
timber harvest declines occurring in 7 counties somewhere around (i.e., 
proximally before and after) the year 2012, stable or flat trends in 3 
counties, and increased harvest levels in 4 counties. Of the declines 
highlighted by the commenter, several began prior to the designation in 
December 2012, casting doubt on the potential direct impact of the 2012 
designation. Almost all of these counties also show large fluctuations 
in harvest levels between years going back to 2002, indicating that 
there are likely other confounding economic and logistical factors 
influencing these dynamic timber harvest levels aside from the 2012 
critical habitat designation, as described in our response to Comment 
(22).
    Third, the analysis provided charts of harvest decline in specific 
counties within the critical habitat designation. A rapid assessment of 
the same data source cited by the commenter, but evaluating a random 
number of additional counties in Oregon, Washington, and California in 
the range of the northern spotted owl, revealed no discernible pattern 
in timber harvest declines that could reasonably be attributed to the 
2012 critical habitat designation. Some counties experienced general 
increases in timber harvest after 2012, some declined, and some were 
relatively flat when compared to long-term trends. A similar pattern of 
fluctuation exists for individual counties located outside of the range 
of the spotted owl but within Oregon, Washington, and California, as 
well as in other western States. Most of these counties showed wide 
fluctuations in timber harvested on Federal lands, both before and 
after 2012, again indicating the influence of factors other than the 
designation of critical habitat.
    Using the same data source cited by this commenter (with 2019 data 
from BLM and USFS on timber volume offered for sale), we reviewed 
Federal land harvest data in Oregon counties that are within the 
northern spotted owl critical habitat designation. The annual average 
harvest from 2002 through 2012 on all BLM lands in the range of the 
spotted owl was approximately 159 million board feet per year prior to 
the 2012 critical habitat designation. The annual average harvest on 
BLM lands located in the range of the spotted owl from 2013 through 
2019, after the 2012 critical rule was published, was 235 million board 
feet; the total in 2020 was 249 million board feet offered for sale 
(BLM 2021a). Thus, rather than suffering a decline, annual harvest 
appears to have increased substantially subsequent to the 2012 
designation of critical habitat.
    Likewise, the annual average harvest from 2002 through 2012 on USFS 
lands located within the range of the spotted owl was approximately 196 
million board feet per year prior to the 2012 critical habitat 
designation. The annual average harvest on USFS land from 2013 through 
2019, after the 2012 critical rule was published, was 288 million board 
feet. We also reviewed Federal harvest data in Oregon counties outside 
the range of the spotted owl (and therefore in counties with no spotted 
owl critical habitat or obligation for Federal agencies to consult 
under ESA section 7) and saw harvest volume fluctuations similar to 
those in counties located within critical habitat. Based on these data 
it does not appear that designation of critical habitat in 2012 had a 
significant incremental depressive effect on subsequent Federal timber 
harvest.
    Comment (22): Douglas County requested that the Service exclude all 
land within Douglas County from the critical habitat designation due to 
severe and disproportionate economic impacts. The County provided a 
2007 report that discusses the negative economic impacts of reduced 
harvest on Federal lands. Additionally, Douglas County asserted that 
our FEA is flawed with respect to Douglas County and should be revised. 
Among other exclusions that are addressed in Comments (25-28), Douglas 
County requested that all private and State lands, and county lands 
specifically in Oregon, be excluded.
    Our response: The report provided by Douglas County focuses on the 
impact that termination of ``safety net'' payments under the Secure 
Rural Schools and Community Self-Determination Act would have on 
counties in western Oregon. The report discusses reductions in harvest 
on Federal lands in the O&C counties attributable to a range of 
factors, resulting in a loss of revenue sharing that limited county 
budgets and rapid contractions of the wood products sector as logging 
declined and mills closed or reduced shifts. The report, prepared in 
2007, does not discuss impacts of the critical habitat

[[Page 62627]]

designation but describes general pressures on the timber industry.
    In addition, during this same time period, timber-related tax 
revenue flowing to Oregon counties has declined due to large reductions 
in State and local property and severance taxes on private timber 
lands. According to one in-depth analysis, half of Oregon's 18 western 
counties lost more revenue due to tax cuts on private lands than they 
did due to reductions in Federal timber harvest levels (Younes and 
Schick 2020). It is unclear if the Brattle analysis incorporated this 
data into its analysis of net declines in timber revenue to local 
economies.
    Our FEA (IEc 2012) addressed the incremental effects of critical 
habitat within the area proposed for designation for the northern 
spotted owl. Consistent with our practice at the time (now codified in 
regulations) the FEA quantifies the economic impacts that may be 
directly attributable to the designation of critical habitat, comparing 
scenarios both ``with critical habitat'' and ``without critical 
habitat.'' Our incremental analysis did not consider the economic 
impact of changes other than from the proposed revised critical habitat 
designation, and did not evaluate the economic condition or status of 
the timber industry at large. Rather, it addressed the effects related 
to the impacts to Federal agencies and their activities, because 
Federal agencies are the only entities directly subject to the 
requirement to evaluate and consider effects of their actions on 
designated critical habitat.
    Nonetheless, we acknowledged that, ``[m]ultiple forces have 
contributed to the recent changes in the Pacific Northwest timber 
industry. In general, the timber industry is characterized as being 
highly competitive; there is a relatively low degree of concentration 
of production among the largest producers and there is essentially a 
single national price for commodity grades of lumber. In recent 
decades, competition has intensified with increased harvesting in the 
U.S. South and interior Canadian Provinces. New technologies and 
increased mechanization have led to mill closures; generally, less 
efficient mills located near Federal forests have been closed in favor 
of larger, more advanced facilities closer to major transportation 
corridors or private timberlands. In addition, other forces such as 
endangered species protections, fluctuations in domestic consumption, 
shifts in international trade, and changes in timberland ownership, 
have all contributed to changes in the Pacific Northwest timber 
industry'' (IEc 2012, p. 3-17).
    We acknowledge that Douglas County has experienced significant 
economic strain, but we conclude that the economic impacts analysis we 
conducted with the 2012 critical habitat designation remains an 
accurate assessment of the incremental economic effects of the 
designation of critical habitat, and does not provide a basis from 
which to exclude all of the areas of critical habitat currently 
designated in the county.
    Regarding Douglas County's request that we exclude private, State, 
and county lands, there are no private lands designated as critical 
habitat for the northern spotted owl; we primarily relied on Federal 
lands, with a small amount of State and local government lands, to meet 
the conservation needs of the northern spotted owl. We did not 
designate any county lands in Oregon as critical habitat. We did 
designate areas on some State lands in Washington, Oregon, and 
California where Federal lands are not sufficient to meet the 
conservation needs of the northern spotted owl. In our final 2012 
designation, we excluded State parks and natural areas and lands in 
Washington covered by a habitat conservation plan. See our Process for 
Exercising Discretion to Conduct an Exclusion Analysis in Consideration 
of Impacts Under Section 4(b)(2) of the Act.
    Comment (23): One commenter noted that a 2012 economic analysis 
from the Sierra Institute, ``Response to the Economic Analysis of 
Critical Habitat Designation for the Northern Spotted Owl by Industrial 
Economics'' (Kusel and Saah 2012), was not fully considered in the 2012 
designation and that a new economic analysis should be conducted.
    Our response: The Service fully considered the content of the Kusel 
and Saah report and found a great deal of overlap between that economic 
analysis and the FEA contracted by the Service and written by 
Industrial Economics (IEc 2012), even incorporating a summary of the 
Kusel and Saah report (2012) (see our response to Comment (201) in the 
December 4, 2012, critical habitat rule (77 FR 71876, p. 72040)). The 
Service maintains that the FEA conducted for the 2012 critical habitat 
designation (IEc 2012) is the most accurate reflection of the potential 
economic impacts of that designation (77 FR 71876). We have reviewed 
the FEA (IEc 2012) and determined that because we are proposing only to 
exclude (i.e., remove) additional areas from critical habitat and are 
not adding any new areas not included in the 2012 designation, the 
economic impact will be further reduced and a new analysis is not 
necessary.

Environmental Analysis Comments

    Comment (24): Commenters expressed that the Service must conduct a 
NEPA analysis and evaluate the exclusions in a biological opinion 
before finalizing exclusions.
    Our response: It is our position that, outside the jurisdiction of 
the U.S. Court of Appeals for the Tenth Circuit (see Catron County 
Board of Commissioners, New Mexico v. U.S. Fish and Wildlife Service, 
75 F.3d 1429 (10th Cir. 1996)), we do not need to prepare environmental 
analyses pursuant to NEPA (42 U.S.C. 4321 et seq.) 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 by the U.S. 
Court of Appeals for the Ninth Circuit in Douglas County v. Babbitt, 48 
F.3d 1495 (9th Cir. 1995).
    Other than a small amount of Indian lands (which were previously 
managed by the BLM), the Service is only excluding lands identified for 
timber harvest under the 2016 BLM RMPs. These RMPs underwent rigorous 
NEPA review, including public comment on the identification of the 
Harvest Land Base lands. The Service then completed a Biological 
Opinion on these RMPs, which included an analysis of the effects of 
proposed timber harvest in designated critical habitat, and concluded 
that timber harvest under the plan would not adversely modify the 
critical habitat. Therefore, consistent with the ruling in Douglas 
County, conducting a NEPA analysis and a biological opinion on the 
proposed exclusions would be redundant, and an inefficient use of 
limited government resources. As we are withdrawing the exclusions 
finalized in the January Exclusion Rule, we make no assessment of 
whether or not a NEPA analysis and biological opinion on those 
exclusions would have been required.

4(b)(2) Exclusions Comments

    The Secretary has discretion whether to conduct an exclusion 
analysis under section 4(b)(2) in accordance with our regulations at 50 
CFR 17.90(c). The Secretary will conduct an exclusion analysis when the 
proponent of excluding a particular area (including but not limited to 
permittees, lessees or others with a permit, lease, or contract on 
federally managed lands) has presented credible information regarding 
the existence of a meaningful economic or other relevant impact

[[Page 62628]]

supporting a benefit of exclusion for that particular area. We provide 
our evaluation of whether commenters requesting the exclusions below 
have provided this credible information in Consideration of Impacts 
Under Section 4(b)(2) of the Act under the section entitled Process for 
Exercising Discretion to Conduct an Exclusion Analysis.
    Comment (25): Commenters variously requested that we exclude all 
O&C lands; all USFS matrix lands; all USFS and BLM lands; BLM lands 
outside the Harvest Land Base; and specifically, all Douglas County 
lands.
    We respond separately to each reason provided for these suggested 
exclusion requests first (except for assertions of economic impacts, 
which are addressed above in response to Comments (20-23)), and then 
provide a collective summary:
    (a) Commenters asserted that critical habitat conflicts with BLM 
and USFS management direction and constrains timber harvest, including 
salvage harvest, on O&C lands and matrix lands.
    Our response: We determined in our section 7 consultation on the 
BLM RMPs that BLM's management direction was consistent with the 
Endangered Species Act and that the actions proposed within the plans, 
including timber harvest in the Harvest Land Base on O&C lands over a 
50-year timeframe, did not result in adverse modification of the 
designated critical habitat. Similarly, our consultations under section 
7 with the USFS for its harvest actions carried out under the NWFP on 
matrix and O&C lands since the 2012 designation of critical habitat 
have resulted in determinations that the actions did not adversely 
modify critical habitat or jeopardize the continued existence of the 
northern spotted owl. Thus, these agencies have not been precluded from 
implementing timber harvests within designated critical habitat; they 
can and do implement harvest actions within critical habitat consistent 
with their management plans. As described in previous responses to 
comments, average annual timber harvest on these lands has actually 
increased after the 2012 designation. Additionally, as an example, in 
response to the 2020 wildfire season, we recently consulted on salvage 
harvest projects in critical habitat in the areas of the Archie Creek 
and South Obenchain wildfires to allow the BLM and the USFS to recover 
the economic value of trees proposed for removal. Critical habitat did 
not impede these projects from going forward nor did it require 
additional project changes to the actions the agencies proposed.
    (b) There are conflicting principles between the O&C Act and the 
Endangered Species Act, and the Service should consider the pending 
court remedy on O&C lands. One commenter suggested that we wait for the 
outcome of that proceeding before revising critical habitat; another 
commenter indicated the court ruling, even without the remedy order, 
supported the exclusion of all O&C lands from designated critical 
habitat.
    Our response: We note that there is ongoing litigation challenging 
BLM's management of O&C lands under the 2016 RMPs (BLM 2016a, 2016b). 
As we described in the proposed rule, one district court has upheld the 
RMPs in challenges asserting non-compliance with the Endangered Species 
Act, a conclusion affirmed by an appellate court (see Pac. Rivers v. 
U.S. Bureau of Land Mgmt., No. 6:16-cv-01598- JR, 2019 WL 1232835 (D. 
Or. Mar. 15, 2019), aff'd sub nom. Pac. Rivers v. Bureau of Land Mgmt., 
815 F. App'x 107 (9th Cir. 2020). In a separate proceeding a district 
judge on the U.S. District Court for the District of Columbia found 
that the BLM RMPs violate the O&C Act because BLM excluded portions of 
O&C timberland from sustained yield harvest (i.e., the BLM allocated 
some timberlands to reserves instead of the Harvest Land Base); see, 
American Forest Resource Council et al. v. Hammond, 422 F.Supp.3d 184 
(D.D.C. 2019). The parties briefed the court on the appropriate remedy, 
but the court has not yet issued an order. We considered this 
information in developing the proposed rule, and sought comment 
specifically on how we should address this information in the rule.
    This final rule is based on the 2016 RMPs as they are, and not as 
they may be modified in the future. The ultimate litigation outcome 
challenging the BLM's management of O&C lands is not certain. We 
acknowledge the potential for future reductions in the BLM reserve 
land-use allocations and changes in the Harvest Land Base. We will 
continue to monitor the litigation and once it has concluded (including 
any land-use planning if undertaken) will assess whether revisions to 
this designation are appropriate to propose. See also our response to 
Comment (6).
    (c) Commenters asserted that O&C lands managed by the BLM and lands 
managed by the USFS should be excluded because the NWFP and RMPs should 
guide management on Federal lands since they are consistent with the 
Revised Recovery Plan for the Northern Spotted Owl (FWS 2011).
    Our response: The Service agrees the NWFP and RMPs guide management 
on Federal lands, as informed by other plans, laws, designations and 
input. Federal land managers are skilled at incorporating a wide 
variety of required inputs and feedback when planning and carrying out 
land management actions, including public comment under the National 
Environmental Policy Act, recommendations from listed species' recovery 
plans, input from the Service and National Marine Fisheries Service 
through the section 7 consultation process, growth and yield models, 
and critical habitat designations, to name just a few. The BLM RMPs 
have undergone section 7 consultation recently, in 2016, with the 2012 
spotted owl critical habitat rule in place and were found to be 
consistent with the Endangered Species Act, including our determination 
that the management direction of the plans is consistent with the 
critical habitat designation.
    In contrast, we have not conducted an updated programmatic review 
of USFS land management plans as was done with BLM plans in 2016. All 
USFS actions carried out under the NWFP since the 2012 designation of 
critical habitat that may affect that habitat have undergone section 7 
consultation on a project-by-project basis and have been found to be 
consistent with the Endangered Species Act. Our January Exclusions Rule 
comment response stated that these consultations were sufficient to 
support exclusion of the USFS land areas because it supported the then-
Secretary's determination that extinction would not result. However, 
without a programmatic-scale look at USFS land management plans we lack 
the updated broad-scale information and assessment of the effects of 
harvest within designated critical habitat that would be necessary to 
sustain additional exclusions of all USFS O&C lands, whether they are 
located in reserves or in areas targeted for timber harvest. See our 
response to Comment (11) concerning the remaining O&C lands in the 
final critical habitat designation. See also our reconsideration of the 
weighing of the benefits of inclusion versus the benefits of excluding 
these lands and our extinction analysis in Consideration of Impacts 
Under Section 4(b)(2) of the Act.
    (d) Commenters stated that non-O&C BLM lands should be excluded for 
ease of administration.
    Our response: We are excluding lands within the BLM Harvest Land 
Base and certain Indian lands in this rulemaking, including some non-
O&C lands managed by BLM. Over 90 percent of

[[Page 62629]]

the Harvest Land Base occurs on O&C lands, but we also included the 
portion of the Harvest Land Base that does not occur on O&C lands in 
this exclusion. See responses to Comments (11) and (16) for an 
explanation of why additional lands managed by BLM are essential to the 
conservation of the northern spotted owl and are thus not being 
excluded.
    (e): Commenters stated that our reliance on the management under 
the BLM RMPs (BLM 2016a, 2016b) as a rationale for excluding the 
Harvest Land Base in those plans should also be applied to considering 
all O&C lands addressed in those plans, and that we should also rely on 
a similar rationale for excluding O&C lands and matrix lands managed by 
the USFS under the protections of the NWFP for exclusions.
    Our response: See our response to Comment (25c) above. 
Additionally, we acknowledge the continuing concern over the inclusion 
of O&C lands in the designation of critical habitat for the northern 
spotted owl. Since the mid-1970s, scientists and land managers have 
recognized the importance of forests located on portions of O&C lands 
for the conservation of the northern spotted owl and have attempted to 
reconcile this conservation need with other land uses (Thomas et al. 
1990, entire). Starting in 1977, BLM worked closely with scientists and 
other State and Federal agencies to implement northern spotted owl 
conservation measures on O&C lands. Over the ensuing decades, the 
northern spotted owl was listed as a threatened species under the Act, 
critical habitat was designated (57 FR 1796, January 15, 1992) and 
revised two times (73 FR 47326, August 13, 2008; 77 FR 71876, December 
4, 2012) on portions of the O&C lands, and a Recovery Plan for the owl 
was completed (73 FR 29471, May 21, 2008, p. 29472) and revised (76 FR 
38575, July 1, 2011). These and other scientific reviews consistently 
recognized the need for large portions of the O&C forest to be managed 
for northern spotted owl conservation while also providing for other 
uses of these lands.
    In 2016, the BLM revised their RMPs providing direction for the 
management of approximately 2.5 million acres (1 million hectares) of 
BLM-administered lands, which includes most of the O&C lands, for the 
purposes of producing a sustained yield of timber, contributing to the 
recovery of endangered and threatened species, providing clean water, 
restoring fire-adapted ecosystems, and providing for recreation 
opportunities (BLM 2016a, p. 20; BLM 2016b, p. 20). The BLM RMPs 
revised the land-use allocations of BLM-managed lands in western 
Oregon. We noted in the Revised Recovery Plan for the Northern Spotted 
Owl (FWS 2011, p. II-3) that the functionality of the critical habitat 
designation on BLM-managed lands and rangewide was anticipated to 
improve, in part as the land management agencies updated their land 
management plans to incorporate the Recovery Plan's recommendations.
    The total Harvest Land Base land use allocation on BLM lands, a 
portion of which is critical habitat and is now being excluded from 
critical habitat, comprises 19 percent (469,215 acres (189,884 
hectares)) of the overall land use allocations described in the RMPs 
and is where the majority of programmed timber harvest will occur (FWS 
2016, p. 9; BLM 2016a, pp. 59-63). Approximately 172,712 acres (69,779 
hectares) of the Harvest Land Base being excluded herein is O&C lands. 
Our analysis of the impacts to the habitat within the Harvest Land Base 
recognized that this land use allocation was not intended to be relied 
upon for demographic support of northern spotted owls (FWS 2016, p. 
553). Thus, through our analysis conducted for the section 7 
consultation for the 2016 RMPs, we have evaluated the role that these 
lands have in the recovery of the northern spotted owl. Based on that, 
we reconsidered the relative value of including them in a critical 
habitat designation.
    The O&C lands that remain within the critical habitat designation 
with this final rule are composed primarily of Late-Successional 
Reserve on BLM and USFS lands, and some forest ``matrix'' lands in 
National Forests where timber harvest was programmed to occur under the 
1994 NWFP. Our modeling results for the 2012 critical habitat 
designation indicated that the O&C lands make a significant 
contribution toward meeting the conservation objectives for the 
northern spotted owl. As described in the section, Changes From the 
Proposed Rule, in the December 4, 2012, critical habitat rule (77 FR 
71876; p. 71888), we tested possible habitat networks without many of 
the BLM (now Harvest Land Base) and USFS matrix lands, which resulted 
in a significant increase in the risk of extinction for the northern 
spotted owl (Dunk et al. 2012, pp. 57-59; Dunk et al. 2019, Figure 8). 
Likewise, in addition to our modeling results, peer review of both the 
Revised Recovery Plan for the Northern Spotted Owl (FWS 2011) as well 
as our proposed rule to revise critical habitat in 2012 indicated that 
retention of high-quality habitat in portions of the matrix is 
essential for the conservation of the subspecies. Thus, while the 
exclusion of the Harvest Land Base acreage as described will not 
jeopardize the subspecies (as assessed in our Biological Opinion on the 
2016 RMPs), the O&C lands and USFS matrix lands that remain within the 
designation remain essential to the conservation of the northern 
spotted owl.
    Comment (26): Commenters requested that we exclude: Areas of 
younger forests; all critical habitat subunits that have 50 percent or 
more younger forests; areas that are not currently occupied by northern 
spotted owls; all unoccupied areas; unoccupied USFS matrix and adaptive 
management area lands; ``habitat capable'' lands; stands under 80 years 
old; and low-quality habitat; and areas described as dispersal habitat. 
We respond separately to these exclusion requests below:
    (a) Commenters asserted that younger forests, including stands 
under 80 years old, areas that are not currently occupied by northern 
spotted owls, and ``habitat capable'' lands do not currently provide 
habitat to the northern spotted owl. Commenters assert that an area is 
not habitat if modification or natural growth is required before it 
could actually support the subspecies. Comments stated that areas of 
younger forests and subunits dominated (greater than 50 percent) by 
younger forests should be excluded and that the benefits of including 
these areas is negligible. Some commenters provided a report and data 
showing areas within the critical habitat designation that had been 
harvested, experienced severe wildfire (see our response to Comment 
27), or are smaller fragmented parcels (see our response to Comment 28) 
(Mason, Bruce and Girard 2021 in AFRC 2021, appendices A-D). Commenters 
stated that even with these exclusions there would still be protections 
for the subspecies due to section 7 obligations.
    Our response: Younger forests are typically the result of past 
timber harvest, wildfire, or some other form of disturbance. Areas of 
younger forest in the critical habitat designation are part of the 
forest mosaic essential for the northern spotted owl. The fact that 
some younger forests may contain few habitat characteristics preferred 
by owls does not mean that such areas are not habitat for the owl--some 
areas may be, others may not be, depending on the site-specific 
characteristics. Nor does the Act preclude designation of areas that 
currently function as habitat for the northern spotted owl but are 
dynamic, such as a forested environment in which younger trees 
naturally grow over time and the area thereby transitions from

[[Page 62630]]

functioning primarily as dispersal or foraging habitat to the 
subspecies' preferred roosting and nesting habitat consisting of older 
stands. The Service's rule does not describe or anticipate 
modifications or natural changes to the designated areas for them to 
qualify as critical habitat or represent current habitat for the 
subspecies; indeed, the regulation explicitly indicates that 
``[n]othing in this rule requires land managers to implement, or 
precludes land managers from implementing, special management or 
protection measures.'' 50 CFR 17.95 (entry for northern spotted owl at 
paragraph 4).
    As to ``occupied'' versus ``unoccupied'' habitat, the commenter may 
be confusing the use of the term ``occupied'' as used when designating 
critical habitat, with the concepts of presence or absence of a species 
in section 7 consultations, which can also refer to the ``occupancy'' 
of the species at the time of the consultation. The two are not the 
same. The Service is required to designate critical habitat based on 
the occupied habitat ``at the time of listing'' which in the case of 
the northern spotted owl was 1990. After 1990, whether or not the 
species ``occupies'' that specific habitat does not dictate whether the 
area is critical habitat. Rather, in our evaluation in a section 7 
consultation for effects of a Federal action on specific designated 
critical habitat, we evaluate the effects to the physical and 
biological features of critical habitat and the post-project 
functionality of the network to provide for connectivity at the 
subunit, unit, and designation scales to ensure the landscape continues 
to support the habitat network locally, regionally, and across the 
designation. This evaluation is not conditional on critical habitat 
being currently occupied. Rather, ``occupancy'' at the time of a 
specific action resulting in a section 7 consultation is generally most 
relevant for assessing whether the proposed Federal action will 
``jeopardize'' the species, or incidentally ``take'' the species. See 
also our response to Comment (3).
    As was explained in the 2012 critical habitat designation, although 
some areas of younger forests may not have been used as nesting habitat 
by northern spotted owls at the time of listing, younger forests are 
often used by owls for dispersal or foraging behavior, both of which 
are essential life functions, and thus are considered as ``occupied'' 
for the purposes of critical habitat designation. Including these areas 
within the designation is beneficial because they provide the physical 
and biological features that currently support owl life functions 
(e.g., dispersal) and contain the habitat elements conducive to 
developing the physical or biological features of the higher-quality 
nesting and roosting habitat (they are of suitable elevation, climate, 
and forest community type over time). While some areas may not be used 
for nesting by spotted owls and may be lacking some element of the 
physical or biological features, such as large trees or dense canopies 
that are associated with the higher quality nesting habitat, these 
areas contain the dispersal and foraging habitat to support movement 
between adjacent subunits and are therefore essential to provide 
population connectivity for the northern spotted owl. In addition, 
northern spotted owls are regularly reproductively successful in home 
ranges that comprise a mosaic of habitat, including older and younger 
forest. Northern spotted owls have in fact been found occupying lower 
quality habitat consisting of younger forested stands, particularly 
when higher quality habitat is not available in the area (Glenn et al. 
2004). The critical habitat designation included younger forests that 
are in proximity to older forests to contribute to northern spotted owl 
occupancy and reproduction.
    In response to ``habitat capable'' lands, see our response to 
Comment (29c) below. In response to continuing section 7 obligations, 
see our response to Comment (3).
    (b) Commenters stated that the description of dispersal habitat is 
unclear and that the Recovery Plan for the Northern Spotted Owl (FWS 
2011) states that dispersal needs have not been thoroughly evaluated 
and therefore dispersal habitat is not determinable. Commenters further 
stated that habitat that does not meet a minimum threshold of 11 inches 
(in) (28 centimeters) (cm) diameter at breast height (dbh) does not 
meet the definition of dispersal habitat.
    Our response: There are sufficient data and scientific information 
to include dispersal habitat as a habitat type for northern spotted owl 
critical habitat. Ideally, dispersal habitat consists of higher-quality 
nesting, roosting, and foraging habitat, but in cases where the 
landscape does not support those habitat types, spotted owls will 
disperse through younger habitat as described in the 2012 critical 
habitat rule (FWS 2012, p. 71907). The Service focused on defining the 
lower limit for forest stands that support the transient phase of 
northern spotted owl dispersal as stands ``with adequate tree size and 
canopy closure to provide protection from avian predators and minimal 
foraging opportunities'' (FWS 2011, p. A-8). Corridors that contain 
these minimum characteristics for dispersal habitat, such as forested 
corridors through fragmented landscapes, serve primarily to support 
relatively rapid movement through such areas, rather than colonization 
(FWS 2012, p. 71901). In general, these areas contain trees with at 
least, but not limited to, 11 in (28 cm) dbh and a minimum 40 percent 
canopy cover. For instance, northern spotted owls will also disperse 
though non-forested areas, such as clearcuts, although they use them 
less than expected based on availability (Miller et al. 1997, p. 145).
    The risk of dispersing through a landscape of minimum or lower 
quality dispersal habitat is not well understood. Buchanan (2004, p. 
1341) evaluated this risk, concluding that ``strategies for management 
of spotted owl dispersal habitat may not produce conditions preferred 
by spotted owls and may result in dispersal-related mortality (due to 
starvation or predation) or other consequences that negatively 
influence juvenile recruitment.'' The relative effect to spotted owls 
dispersing though a lower-quality stand and landscape is the issue that 
has not been ``thoroughly evaluated or described'' (FWS 2011, p. vi), 
as opposed to the value of dispersal habitat generally for northern 
spotted owls. Mortality rates of juvenile dispersal exceed 70 percent 
in some studies, with known or suspected causes of mortality during 
dispersal including starvation, predation, and accidents (FWS 2011, p. 
A-7).
    In addition to assisting with dispersal in support of northern 
spotted owl life functions, young stands also assist in addressing the 
long-term viability and recovery of the owl. Habitat loss and 
degradation were identified as major threats to the northern spotted 
owl at the time of listing, and conservation and recovery of the 
subspecies are dependent in part on the development of currently low-
quality habitat into high-quality habitat to allow for population 
growth and recovery (77 FR 71876; p. 71917). Younger forests that meet 
the dispersal characteristics described in the 2012 designation provide 
for this environment as the stands age and develop the complex 
structural components of that higher quality habitat. To summarize, 
there is a clear biological need for young forests to contribute to 
spotted owl recovery both as dispersal habitat and as future breeding 
habitat to support population growth and recovery. Ideally, dispersal 
habitat consists of a large percentage of older habitat on the 
landscape, but younger stands also support movement

[[Page 62631]]

and are necessary where older habitat is lacking. Additionally, 
dispersal habitat is a biological need of the subspecies due to the 
need for successional development to supply additional older, higher-
quality habitat to address past and future habitat loss within critical 
habitat.
    Comment (27): Commenters requested that we exclude all California 
lands, areas of high or moderately high fire hazard risk or fire-prone 
forests, entire subunits in fire-prone areas, dry forest in California, 
dry forest in the Eastern Washington Cascades, areas that have 
experienced high-severity wildfire, and previously burned Late-
Successional Reserve, citing the following rationale:
    (a) Commenters stated that a conflict exists between critical 
habitat and management objectives for fuels reduction and active 
management, and that wildfire suppression costs are immense. They 
asserted that exclusion of certain lands would facilitate density 
management, dry forest restoration, and fuels reduction on the most 
vulnerable acres and prevent loss of northern spotted owl habitat.
    Our response: In the 2012 critical habitat rule, the Service 
accounted for the drier provinces and parts of the range and recognized 
that forest management needs to be tailored to the forest type and 
climatic conditions, including the dry forests in California and the 
Eastern Washington Cascades. As part of the critical habitat rule, the 
Service expressly encouraged land managers to consider implementation 
of active forest management, using ``ecological forestry'' practices, 
to restore natural ecological processes where they have been disrupted 
or suppressed (e.g., natural fire regimes). This flexibility is 
provided to reduce the potential for adverse impacts associated with 
commercial timber harvest when such harvest is planned within or 
adjacent to critical habitat and consistent with land-use plans (77 FR 
71876; p. 71877).
    On page 71908 of the December 4, 2012, critical habitat rule (77 FR 
71876), we stated that, in drier, more fire-prone regions of the owl's 
range, habitat conditions will likely be more dynamic, and more active 
management may be required to reduce the risk to the essential physical 
or biological features from fire, insects, disease, and climate change, 
as well as to promote regeneration following disturbance.
    The Service recognizes that land managers have a variety of forest 
management goals, including maintaining or improving ecological 
conditions where the intent is to provide long-term benefits to forest 
resiliency and restore natural forest dynamic processes (FWS 2011, III-
45).
    The Service has consulted under section 7 with Federal agencies on 
their fuels reduction, stand resiliency, and pine restoration projects 
in dry forest systems within the range of the northern spotted owl. For 
example, we have consulted with the BLM and the USFS on such actions in 
the Klamath Province of southern Oregon. The proposed actions may 
include treatment areas that reduce forest canopy to obtain desired 
silvicultural outcomes and meet the purpose and need of the project, 
including timber production. They can also promote ecological 
restoration and are expected to reduce future losses of spotted owl 
habitat and improve overall forest ecosystem resilience to climate 
change. We have to date concluded in these consultations that the 
actions do not adversely modify critical habitat. Thus, active 
management to reduce wildfire risk can and has been undertaken in 
designated critical habitat.
    In the 2012 critical habitat rule, we repeatedly reference the need 
for and appropriateness of conducting forest health treatments in 
spotted owl habitat, including designated critical habitat. Likewise, 
the Revised Recovery Plan for the Northern Spotted Owl (FWS 2011) 
encourages application of active forest management within spotted owl 
habitat to address forest health, wildfire risk, and impacts of climate 
change. Lastly, the 2016 Biological Opinion on the BLM's 2016 RMPs 
generally supports this need as well.
    In sum, there are almost always conflict and tradeoffs when 
conducting silvicultural projects that disturb existing forest stands. 
Spotted owl habitat conservation is just one of these tradeoffs; others 
include water quality, recreation, carbon sequestration, aesthetic 
values, economic opportunity, safety, and fire risk, to name a few. The 
2012 critical habitat rule and other documents prepared by the Service 
both before and after 2012 provide support for evaluating these 
tradeoffs and, where appropriate, proceeding with fuels management 
projects within critical habitat (Henson et al. 2013). The commenters' 
assertion that critical habitat conflicts with management objectives 
for fuels reduction and active management is overstated; therefore, we 
find this rationale does not support consideration of exclusion of 
additional lands.
    (b) Commenters requested the exclusion of burned areas to allow 
reforestation and fuels treatments to occur, stated that fire-dependent 
landscapes should be excluded because critical habitat does not benefit 
conservation or forest management in these areas. Commenters also 
stated that areas that have experienced high-severity burns no longer 
provide habitat for the northern spotted owl.
    Our response: Northern spotted owls use previously burned areas for 
foraging and nesting/roosting depending on the habitat conditions post-
fire (Gaines et al. 1997, King et al. 1998, Bond et al. 2002, Jenness 
et al. 2004; Clark 2007; Bond et al. 2009, Clark et al. 2011; Roberts 
et al. 2011; Lee et al. 2012; Clark et al. 2013; Bond et al. 2016; 
Jones et al. 2016; Bond et al. 2016; and Eyes et al. 2017). For 
example, in southwestern Oregon, spotted owls used areas that burned at 
all levels of burn severity, although they preferred areas that were 
unburned or burned at low to moderate severity (Clark 2007, pp. 111-
112). Spotted owls use all burn severities and fire-created edges at 
different spatial scales, although the use may change over time and be 
dependent on proximity to existing high-quality nesting, roosting, and 
foraging habitat where protective cover and structural complexity were 
not as affected by fire.
    In addition, the critical habitat rule provides the flexibility to 
conduct fuel treatments and reforestation activities, whose 
contribution to northern spotted owls will be amplified when conducted 
consistent with Recovery Action 12 (FWS 2011, p. III-49): ``In lands 
where management is focused on development of spotted owl habitat, 
post-fire silvicultural activities should concentrate on conserving and 
restoring habitat elements that take a long time to develop (e.g., 
large trees, medium and large snags, downed wood).''
    Additionally, natural disturbance processes, especially in drier 
regions, likely contribute to a pattern in which patches of habitat in 
various stages of suitability shift positions on the landscape through 
time. Sufficient area to provide for these habitat dynamics and to 
allow for the maintenance of adequate quantities of suitable habitat on 
the landscape at any one point in time is, therefore, essential to the 
conservation of the northern spotted owl. The recent loss of older 
habitat due to the 2020 and 2021 wildfires underscores the need for 
biological redundancy in the critical habitat designation to 
accommodate these habitat changes over time. We do not remove these 
areas from the designation when these changes occur, we anticipated 
this shift in suitability in the overall design of the critical habitat 
network.
    Because northern spotted owls use burned areas, and because 
management

[[Page 62632]]

activities such as reforestation may still occur within designated 
critical habitat, we do not agree w

[…truncated; see source link]
Indexed from Federal Register on November 10, 2021.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.