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In this case, FWS undertook the required Economic Analysis but concluded that the proposed designation would have an economic impact, which FWS considered to be moderate. See New Proposed Designation, 67 Fed.Reg. at 39,224. FWS concluded that the proposed designation would have a negligible impact on the value of the species' habitat, and that the loss of critical habitat would not be economically significant.
The district court disagreed. It concluded that FWS had not sufficiently evaluated the economic impact of its designation, and that FWS had not sufficiently studied the effects that critical habitat designation would have on the economic value of the San Acacia reach. The district court ordered FWS to conduct another economic analysis that would include an analysis of the effect of critical habitat designation on the value of the San Acacia reach.
In this case, the district court did not consider the impact of the designation on the San Acacia reach. It focused exclusively on the conservation status of the species. As a result, the court ignored the fact that FWS already considered the impact that designation would have on the San Acacia reach in its economic analysis, and it thus ignored the Supreme Court's admonition to consider the impact of an action on the affected species.
We therefore vacate the district court's order that FWS conduct another economic analysis and remand with directions that the district court enter a new order allowing the designation of critical habitat to take effect.
This court concludes that the district court should not have required FWS to conduct a new economic analysis. FWS explicitly considered the economic impact of the proposed designation when it performed the required Economic Analysis. The district court took issue with the fact that FWS had not conducted a multi-factor analysis of the economic impact, but FWS had no obligation under the ESA to perform such an analysis.
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