In a victory for the northern spotted owl, the Biden administration has struck down a Trump-era plan that would have removed more than 3.4m acres of critical habitat for the imperiled bird and opened the old-growth forests where it lives to logging.

The population of the small chocolate-brown owl, which lives in forested areas in Washington, Oregon, and northern California, has been in decline for decades and has already lost roughly 70% of its habitat. Its numbers have plummeted 77% in Washington state, 68% in Oregon, and close to half in California, according to studies by the US Geological Survey, and biologists fear that further habitat reduction would put them on the path to extinction.

A controversial decision made by Trump’s interior secretary just five days before leaving office was widely viewed as a parting gift to the timber industry. The Fish and Wildlife Service has since found that there was “insufficient rationale and justification” to reduce the threatened owl’s habitat.

Under the new plan, roughly 204,000 acres – approximately 2% of the 9.6m acres designated as habitat for the owls in 2012 – will be made available for development while more than 3m will be restored and protected. The agency claims the exclusion of those lands from habitat designation will enable federal land managers to meet obligations to the logging industry and help limit catastrophic wildfires that continue to threaten forests in the west.

“The exclusions we are proposing now will allow fuels management and sustainable timber harvesting to continue while supporting northern spotted owl recovery,” said Martha Williams, principal deputy director of the Fish and Wildlife Service, in a statement issued when the rule revision was proposed in July.

Wildlife advocates, government agencies and the timber industry have sparred for decades over the northern spotted owl. Federal habitat protections imposed in 2012 were meant to avert the bird’s extinction. They’ve also been blamed for a logging slowdown that’s devastated some rural communities.

The logging industry has pushed back against the revision, arguing that more thinning and management of protected forests is necessary to prevent wildfires, which devastated 560 square miles (1,450 square kilometers) of spotted owl habitat last fall. Most of that area is no longer considered viable for the birds.

In the agency’s analysis of the rule-change, officials note that timber harvesting doesn’t lessen the risk of severe burns, writing that fuel reduction treatments – where smaller, less lucrative vegetation is strategically culled from the landscape – should instead be used to restore forest health. Federal land managers can still conduct these treatments in designated critical habitat, the agency concluded.

Timber interests also say some of the land set aside under Tuesday’s announcement isn’t actually spotted owl habitat or is broken up into parcels too small to support the owl. As such, the smaller habitat designation issued under Trump was “legally and scientifically valid”, said Nick Smith, a spokesman for the American Forest Resource Council, a group that represents about 100 manufacturing and logging operations in five western US states.

“The federal government cannot set aside critical habitat unless it is habitat for the species. That’s the critical concern,” he said.

But the federal biologists found significant issues with the science used to push the previous rule through. David Bernhardt, Trump’s interior secretary, and Aurelia Skipwith, the former Fish and Wildlife service director, dismissed their concerns and underestimated the threat of extinction, according to documents reviewed by the Associated Press.

Democratic lawmakers from Oregon, Washington and California in February called for an investigation into the removal of spotted owl protections, citing “potential scientific meddling” by Trump appointees.

Bernhardt has defended his handling of the matter, telling AP that Congress gave the interior secretary authority to exclude areas from protection.

Environmental advocates championed the move, but continue to have concerns that the agency would allow any amount of logging on the land.

“We’re glad the Biden administration repealed the ridiculous and politically driven decision to strip 3m acres from the spotted owl’s critical habitat” said Noah Greenwald, the endangered species director at the Center for Biological Diversity. “It needs all the habitat it can get if it’s going to make it.” But, he called the exclusions that remain, “disappointing”.

“The Biden administration is condoning the cutting of old growth forests on BLM land,” he said. “It is definitely not what the owl needs and it’s not what our climate needs.”

Associated Press contributed reporting