Endangered Species Act Critical Habitat Report Draft Information Basis and Impact Considerations of Critical Habitat Designations for Threatened Caribbean Corals September 2020 CONTENTS 1. Introduction 4 2. Background 5 2.1. Listing History ................................................................................................................................ 5 2.2. Natural History .............................................................................................................................. 5 3. Critical Habitat Identification and Designation 10 4. Geographical Areas Occupied by the Species 11 5. Physical or Biological Features Essential for Conservation 12 6. Specific Areas Within the Geographical Areas Occupied by the Species 23 7. Unoccupied Areas 27 8. Special Management Considerations 28 9. Application of ESA Section 4(a)(3)(B)(i) 29 10. Application of ESA Section 4(b)(2) 31 10.1. Economic Impacts ....................................................................................................................... 32 10.1.1. Introduction ........................................................................................................................ 34 10.1.2. Framework of the economic analysis ................................................................................. 35 10.1.3. Activities that may be affected ........................................................................................... 44 10.1.4. Projection of Future Section 7 Consultations ..................................................................... 64 10.1.5. Potential Project Modifications .......................................................................................... 70 10.1.6. Estimated Incremental costs ............................................................................................... 80 10.1.7. Economic Impacts Summary ............................................................................................... 97 10.2. National Security Impacts ........................................................................................................... 98 10.3. Other Relevant Impacts .............................................................................................................. 98 10.3.1. Conservation Benefits ......................................................................................................... 99 10.3.2. Impacts to Governmental and Private Entities ................................................................. 107 Appendix A. Incremental Cost Sensitivity Results A-1 Appendix B. Impacts on Small Businesses B-1 Summary of Findings .............................................................................................................................. B-1 Initial Regulatory Flexibility Analysis (IRFA) ........................................................................................... B-3 Why Action by the Agency is Being Considered ................................................................................ B-4 Objectives of and Legal Basis for the Proposed Rule ......................................................................... B-4 Description and Estimate of the Number of Small Entities to Which the Proposed Rule Will Apply B-4 Description of Reporting and Recordkeeping Efforts ........................................................................ B-8 Identification of Relevant Federal Rules that may Duplicate, Overlap, or Conflict with the Proposed Rule 8 Description of Alternatives to the Proposed Rule Which Accomplish the Objectives and Which Minimize Impacts on Small Entities ................................................................................................... B-8 References Ref-1 3 Caribbean Coral Critical Habitat Information Report LIST OF TABLES Table 1. DISTRIBUTIONS OF THREATENED CARIBBEAN CORAL SPECIES IN US JURISDICTIONS. Depth ranges reflect the typical depth distribution of each species. ...................................................................... 9 Table 2. EXAMPLES OF WATER CONDITIONS THAT SUPPORT CORAL REEFS. ............................................ 20 Table 3. UNITS OF CRITICAL HABITAT FOR EACH OF THE 5 THREATENED CARIBBEAN CORALS................ 25 Table 4. NMFS SOUTHEAST REGION CONSULTATIONS FOR ACTIVITIES THAT MAY AFFECT PROPOSED 5 corals CRITICAL HABITAT AREAS, BY ACTIVITY TYPE AND ACTION AGENCY (2004 – 2014) ........................ 45 Table 5. CONSTRUCTION CONSULTATIONS IN PROPOSED CRITICAL HABITAT AREAS FOR THE 5 corals BY SUBCATEGORY (2004 – 2014) ..................................................................................................................... 50 Table 6. FREQUENCY OF DREDGING IN FEDERALLY MAINTAINED HARBORS ............................................. 51 Table 7. FREQUENCY OF BEACH NOURISHMENT PROJECTS ON THE EAST COAST OF FLORIDA ................ 53 Table 8. FREQUENCY OF DREDGING FOR FEDERAL SHORELINE PROTECTION PROJECTS ON THE EAST COAST OF FLORIDA ..................................................................................................................................... 54 Table 9. FEDERAL PROTECTED AREAS WITHIN THE PROPOSED CRITICAL HABITAT ................................... 57 Table 10. ANNUAL LANDINGS AND VALUE OF THE SPINY LOBSTER FISHERY ............................................. 60 Table 11. ANNUAL LANDINGS AND VALUE OF THE CARIBBEAN REEF FISH FISHERY .................................. 60 Table 12. PROJECTED QUANTITY AND DISTRIBUTION OF INCREMENTAL PROGRAMMATIC SECTION 7 CONSULTATIONS (2016-2025) .................................................................................................................... 67 Table 13. PROJECTED QUANTITY AND DISTRIBUTION OF INCREMENTAL FORMAL SECTION 7 CONSULTATIONS (2016 – 2025) .................................................................................................................. 68 Table 14. PROJECTED QUANTITY AND DISTRIBUTION OF INFORMAL SECTION 7 CONSULTATIONS (2016- 2025) ........................................................................................................................................................... 70 Table 15. SUMMARY OF POTENTIAL PROJECT MODIFICATIONS ................................................................ 73 Table 16. COST OF POTENTIALLY INCREMENTAL PROJECT MODIFICATIONS ............................................. 79 Table 17. INCREMENTAL COSTS PER CONSULTATION RESULTING FROM THE ADDITIONAL ADMINISTRATIVE EFFORT TO ADDRESS ADVERSE MODIFICATION FOR ACTIVITIES IN 5 corals CRITICAL HABITAT (2015$) ......................................................................................................................................... 81 Table 18. INCREMENTAL ADMINISTRATIVE COSTS, BY UNIT 2016-2025 ($2015, 7% DISCOUNT RATE) .... 83 Table 19. INCREMENTAL ADMINISTRATIVE COSTS, BY ACTIVITY TYPE 2016-2025 ($2015) ....................... 83 Table 20. FORECAST SECTION 7 CONSULTATIONS BY ACTIVITY THAT WOULD NOT AFFECT ACROPORA CRITICAL HABITAT (2016 – 2025)1-4, 6 .......................................................................................................... 84 Table 21. INCREMENTAL PROJECT MODIFICATIONS BY ACTIVITY .............................................................. 86 Table 22. High-end Incremental Project Modification Costs, By Unit, 2016-2025 ($2015, 7% Discount Rate) ............................................................................................................................................................ 87 Table 23. HIGH-END INCREMENTAL PROJECT MODIFICATION COSTS, BY ACTIVITY TYPE, 2016-2025 ($2015, 7% DISCOUNT RATE) ...................................................................................................................... 88 i Caribbean Coral Critical Habitat Information Report Table 24. LOW-END TOTAL INCREMENTAL COSTS (ADMINISTRATIVE)), BY UNIT, 2016-2025 ($2015, 7% DISCOUNT RATE) ......................................................................................................................................... 90 Table 25. HIGH-END TOTAL INCREMENTAL COSTS (ADMINISTRATIVE AND PROJECT MODIFICATION), BY UNIT, 2016-2025 ($2015, 7% DISCOUNT RATE) .......................................................................................... 90 Table 26. LOW-END TOTAL INCREMENTAL COSTS (ADMINISTRATIVE), BY ACTIVITY TYPE, 2016-2025 ($2015, 7% DISCOUNT RATE) ...................................................................................................................... 91 Table 27. HIGH-END TOTAL INCREMENTAL COSTS (ADMINISTRATIVE AND PROJECT MODIFICATION), BY ACTIVITY TYPE, 2016-2025 ($2015, 7% DISCOUNT RATE) .......................................................................... 92 Table 28. SUMMARY OF UNCERTAINTIES ................................................................................................... 94 Table 29. RELEVANT ECONOMIC VALUE ESTIMATES FOR CORAL REEFS (AS REPORTED IN NOAA CORAL REEF CONSERVATION PROGRAM, 2013) .................................................................................................. 105 U.S. Department of Commerce | National Oceanic and Atmospheric Administration | National Marine Fisheries Service LIST OF FIGURES Figure 1. CALCULATING PRESENT VALUE .................................................................................................... 43 Figure 2. OVERLAP WITH ELKHORN AND STAGHORN CRITICAL HABITAT IN THE CARIBBEAN. (Note: “Five Corals” in legends in this and following figure is an error in outside source maps