AGENCY:

National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.

ACTION:

Proposed rule; request for comments.

SUMMARY:

NMFS proposes to approve and implement Framework Adjustment 32 to the Atlantic Sea Scallop Fishery Management Plan that establishes scallop specifications and other measures for fishing years 2020 and 2021. In addition, Framework 32 would implement measures to protect small scallops and reduce bycatch of flatfish and address regulatory text that is unnecessary, outdated, or unclear consistent with section 305(d) of the Magnuson-Stevens Fishery Conservation and Management Act. This action is necessary to prevent overfishing and improve both yield-per-recruit and the overall management of the Atlantic sea scallop resource.

DATES:

Comments must be received by March 6, 2020.

ADDRESSES:

The New England Fishery Management Council has prepared a draft environmental assessment (EA) for this action that describes the proposed measures in Framework Adjustment 32 and other considered alternatives and analyzes the impacts of the proposed measures and alternatives. The Council submitted a draft of Framework 32 to NMFS that includes the draft EA, a description of the Council's preferred alternatives, the Council's rationale for selecting each alternative, and an Initial Regulatory Flexibility Analysis (IRFA). Copies of the draft of Framework 32, the draft EA, the IRFA, and information on the economic impacts of this proposed rulemaking are available upon request from Thomas A. Nies, Executive Director, New England Fishery Management Council, 50 Water Street, Newburyport, MA 01950 and accessible via the internet in documents available at: https://www.nefmc.org/​library/​framework-32.

You may submit comments on this document, identified by NOAA-NMFS-2019-0148, by either of the following methods:

• Electronic Submission: Submit all electronic public comments via the Federal e-Rulemaking Portal. Go to www.regulations.gov/​#!docketDetail;​D=​NOAA-NMFS-2019-0148, click the “Comment Now!” icon, complete the required fields, and enter or attach your comments.
• Mail: Regional Administrator, NMFS, Greater Atlantic Regional Fisheries Office, 55 Great Republic Drive, Gloucester, MA 01930. Mark the outside of the envelope, “Comments on Framework 32.”

Instructions: Comments sent by any other method, to any other address or individual, or received after the end of the comment period, may not be considered by NMFS. All comments received are a part of the public record and will generally be posted for public viewing on www.regulations.gov without change. All personal identifying information (e.g., name, address, etc.), confidential business information, or otherwise sensitive information submitted voluntarily by the sender will be publicly accessible. NMFS will accept anonymous comments (enter “N/A” in the required fields if you wish to remain anonymous).

FOR FURTHER INFORMATION CONTACT:

Travis Ford, Fishery Policy Analyst, 978-281-9233.

SUPPLEMENTARY INFORMATION:

Background

The scallop fishery's management unit ranges from the shorelines of Maine through North Carolina to the outer boundary of the Exclusive Economic Zone. The Atlantic Sea Scallop Fishery Management Plan (FMP), established in 1982, includes a number of amendments and framework adjustments that have revised and refined the fishery's management. The New England Fishery Management Council sets scallop fishery catch limits and other management measures through specification or framework adjustments that occur annually or biennially. The Council adopted Framework 32 to the Atlantic Sea Scallop FMP on December 5, 2019. The Council submitted a draft of the framework, including a draft EA, for NMFS review and approval on December 24, 2019. This action proposes to approve and implement Framework 32, which establishes scallop specifications and other measures for fishing years 2020 and 2021, including changes to the catch, effort, and quota allocations and adjustments to the rotational area management program for fishing year 2020, measures to reduce bycatch of flatfish, and default specifications for fishing year 2021.

NMFS will implement these Framework 32 measures, if approved, as close as possible to the April 1 start of fishing year 2020. If NMFS implements these measures after the start of the fishing year, 2020 default allocation measures will go into place on April 1, 2020. The Council reviewed the proposed regulations in this rule as drafted by NMFS and deemed them to be necessary and appropriate as specified in section 303(c) of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act).

Specification of Scallop Overfishing Limit (OFL), Acceptable Biological Catch (ABC), Annual Catch Limits (ACLs), Annual Catch Targets (ACTs), Annual Projected Landings (APLs) and Set-Asides for the 2020 Fishing Year, and Default Specifications for Fishing Year 2021

The Council set the proposed OFL based on a fishing mortality (F) of 0.64, equivalent to the F threshold updated through the Northeast Fisheries Science Center's most recent scallop benchmark stock assessment that was completed in August 2018. The proposed ABC and the equivalent total ACL for each fishing year are based on an F of 0.51, which is the F associated with a 25-percent probability of exceeding the OFL. The Council's Scientific and Statistical Committee (SSC) recommended scallop fishery ABCs of 100.1 million lb (45,414 mt) for 2020 and 80.3 million lb (36,435 mt) for the 2021 fishing year, after accounting for discards and incidental mortality. The SSC will reevaluate and potentially adjust the ABC for 2021 when the Council develops the next framework adjustment.

Table 1 outlines the proposed scallop fishery catch limits. After deducting the incidental target total allowable catch (TAC), the research set-aside (RSA), and the observer set-aside, the remaining ACL available to the fishery is allocated according to the following fleet proportions established in Amendment 11 to the FMP (72 FR 20090; April 14, 2008): 94.5 percent is allocated to the limited access scallop fleet (i.e., the larger “trip boat” fleet); 5 percent is allocated to the limited access general category (LAGC) individual fishing quota (IFQ) fleet (i.e., the smaller “day boat” fleet); and the remaining 0.5 percent is allocated to limited access scallop vessels that also have LAGC IFQ permits. Amendment 15 to the FMP (76 FR 43746; July 21, 2011) specified that no buffers to account for management uncertainty are necessary in setting the LAGC ACLs, meaning that the LAGC ACL is equal to the LAGC ACT. For the limited access fleet, the management uncertainty buffer is based on the F associated with a 75-percent probability of remaining below the F associated with ABC/ACL, which, using the updated Fs applied to the ABC/ACL, now results in an F of 0.46.

This action would deduct 1.25 million lb (567 mt) of scallops annually for 2020 and 2021 from the ABC for use as the Scallop RSA to fund scallop research. Participating vessels are compensated through the sale of scallops harvested under RSA projects. Of the 1.25 million-lb (567-mt) allocation, NMFS has already allocated 86,953 lb (39,441 kg) to previously funded multi-year projects as part of the 2019 RSA awards process. NMFS is reviewing proposals submitted for consideration of 2020 RSA awards and will be selecting projects for funding in the near future.

This action would also deduct 1 percent of the ABC for the industry-funded observer program to help defray the cost to scallop vessels that carry an observer. The observer set-aside is 454 mt for 2020 and 364 mt for 2021. The Council may adjust the 2021 observer set-aside when it develops specific, non-default measures for 2021.

Open Area Days-at-Sea (DAS) Allocations

This action would implement vessel-specific DAS allocations for each of the three limited access scallop DAS permit categories (i.e., full-time, part-time, and occasional) for 2020 and 2021 (Table 2). Proposed 2020 DAS allocations are the same as those allocated to the limited access fleet in 2019. Framework 32 would set 2021 DAS allocations at 75 percent of fishing year 2020 DAS allocations as a precautionary measure. This is to avoid over-allocating DAS to the fleet in the event that the 2021 specifications action is delayed past the start of the 2021 fishing year. The proposed allocations in Table 2 exclude any DAS deductions that are required if the limited access scallop fleet exceeds its 2019 sub-ACL.

If NMFS implements these Framework 32 measures after the April 1 start of fishing year 2020, default DAS allocations, which were established in Framework Adjustment 30 to the Scallop FMP (84 FR 11436; March 27, 2019), would go into place on April 1. Full-time vessels would receive 18 DAS, part-time vessels would receive 7.20 DAS, and occasional vessels would receive 1.50 DAS. The allocations would later be increased in accordance with Framework 32, if approved. NMFS will notify all limited access permit holders of both default and Framework 32 DAS allocations so that vessel owners know what mid-year adjustments would occur should Framework 32 be approved and implemented after April 1, 2020.

Changes to Fishing Year 2020 Sea Scallop Access Area Boundaries

For fishing year 2020 and the start of 2021, Framework 32 would keep the Mid-Atlantic Access Area (MAAA) and Closed Area I Access Area (CAI) open as access areas. In addition, this action would open three areas new areas, i.e., Nantucket Lightship-South-Deep Access Area (NLS-S-D) (Table 3), Nantucket Lightship-North Access Area (NLS-N) (Table 4), and Closed Area II Access Area (CAII) (Table 5). The boundaries for these areas would change slightly compared to previous years to better direct fishing on the scallops intended for harvest, to protect small scallops, and to reduce flatfish bycatch.

Fishing Year 2020 Sea Scallop Closed Area Boundaries

Framework 32 would close three areas to scallop fishing for various reasons. This action would close the Closed Area II-Southwest and Extension Scallop Rotational Area (Table 6) to scallop fishing. Closing this area would protect small scallops that have not yet recruited to the fishery. In addition, closing this area is expected to reduce bycatch of Georges Bank yellowtail flounder and northern windowpane flounder on Georges Bank.

This action would also close the Nantucket Lightship-Triangle Scallop Rotational Area (Table 7). The Council is proposing to close this area because it is a small area with low scallop densities that could be used for research purposes in the absence of fishing.

Finally, Framework 32 would close the Stellwagen Bank Scallop Rotational Area (Table 8) through fishing year 2021. This closure would protect a substantial number of small scallops that have not recruited into the fishery. This closure would be re-assessed after 1 year to confirm that it is in fact protecting small scallops and improving yield-per-recruit. In addition, closing this area is expected reduce bycatch of northern windowpane flounder on Stellwagen Bank.

Areas Reverting to Open Area

Framework 32 would open two areas previously managed as part of the area rotation program because they no longer meet the criteria for either closure or controlled access, specifically the Nantucket Lightship-Hatchet Scallop Rotational Area and the Nantucket Lightship-West (NLS-W) Scallop Rotational Area. These areas would become part of the open area and could be fished as part of the DAS program or on LAGC IFQ trips. Because fishing year 2019 carryover access area fishing will continue in NLS-W until May 30, 2020, this area would not revert to open area until May 31, 2020.

Extension of CAII Seasonal Closure To Mitigate Flatfish Bycatch

Framework 32 would extend the existing seasonal closure in CAII an additional 15 days to reduce bycatch of northern windowpane flounder and Georges Bank yellowtail flounder. The current seasonal closure in CAII occurs from August 15-November 15 of each year. The dates of this seasonal closure were developed in Framework Adjustment 24 to the Scallop FMP (78 FR 27088; May 9, 2013). This action would extend that closure for 15 additional days from August 15—November 30 for the 2020 fishing year only.

Full-Time Limited Access Allocations and Trip Possession Limits for Scallop Access Areas

Table 9 provides the proposed limited access full-time allocations for all of the access areas for the 2020 fishing year and the first 60 days of the 2021 fishing year. These allocations could be landed in as many trips as needed, so long as vessels do not exceed the possession limit (also in Table 9) on any one trip.

Closed Area I Flex Allocation

Framework 32 would allocate 9,000 lb (4,082 kg) of flexible allocation (flex allocation) in CAI to limited access full-time vessels (Table 9). Because of uncertainty about the condition of the resource in CAI, a full-time limited access vessel may choose to land its CAI allocation from either CAI or the MAAA for the 2020 fishing year and the first 60 days of the 2021 fishing year. For example, a vessel could take a trip in CAI and land 5,000 lb (2,268 kg) from that area, leaving the vessel with 4,000 lb (1,814 kg) of the CAI flex allocation available, which could be landed from the MAAA, provided the 18,000-lb (8,165-kg) possession limit is not exceeded on any one trip. Framework 32 would not allocate any flex allocation to part-time limited access vessels.

Changes to the Full-Time Limited Access Vessels' One-for-One Access Area Allocation Exchanges

Framework 32 would allocate each full-time limited access vessel 9,000 lb (4,082 kg) of allocation to both CAI and NLS-N. To accommodate one-for-one access area allocation changes among all available access areas, this action would allow full-time limited access vessels to exchange access area allocation in 9,000-lb (4,082-kg) increments. The owner of a vessel issued a full-time limited access scallop permit would be able to exchange unharvested scallop pounds allocated into an access area for another full-time limited access vessel's unharvested scallop pounds allocated into another access area. For example, a full-time vessel may exchange 9,000 lb (4,082 kg), from one access area for 9,000 lb (4,082 kg) allocated to another full-time vessel for another access area. Further, a full-time vessel may exchange 18,000 lb (8,165 kg) from one access area for 18,000 lb (8,165 kg) allocated to another full-time vessel for another access area. One-for-one access area allocations for part-time limited access vessels would remain unchanged and must occur in the increments of a possession limit, i.e., 12,000 lb (5,443 kg).

Changes to the Crew Restrictions for Trips in Nantucket Lightship-South-Deep Access Area

The scallops in the NLS-S-D are a 7-year-old class of animals that have experienced abnormally slow growth and have been tracked closely since 2015 (i.e., 35-75 mm shell height). Some larger scallops (i.e., > 75 mm shell height) were observed in the NLS-S-D during the 2019 surveys, though a comparison of shell height to meat weight relationships suggest that these scallops have lower yield than similar sized scallops in other areas. However, due to the abundance of these scallops, Framework 32 would allocate 18,000 lb (8,165 kg) of scallops in NLS-S-S to each limited access full-time and limited access full-time small dredge vessel. Because these scallops are smaller than those normally harvested in the area rotation program, Framework 32 would allow two additional crew members aboard both limited access full-time (10 in total) and limited access full-time small dredge vessels (8 in total). This would allow vessels to add additional crew members to increase the shucking capacity of the vessel and reach the possession limit in a time more consistent with other access areas.

Part-Time Limited Access Allocations and Trip Possession Limits for Scallop Access Areas

Table 10 provides the proposed limited access part-time allocations for all of the access areas for the 2020 fishing year and the first 60 days of the 2021 fishing year. These allocations could be landed in as many trips as needed, so long as the vessels do not exceed the possession limit (also in Table 10) on any one trip.

Payback Measures for 2020 Default Poundage Allocations in NLS-W

During the development of Framework 30 in 2018, the projected biomass in the NLS-W was high and this area was expected to be able to support a default trip in fishing year 2020. However, the 2019 scallop surveys observed an unexpected decrease in biomass in the NLS-W and 2020 projections of exploitable biomass suggest that this area cannot support additional access area fishing in 2020. Framework 32 would not allocate effort into the NLS-W, but instead would revert NLS-W to part of the open area. If NMFS implements these Framework 32 measures after the April 1 start of fishing year 2020, default access area allocations, which were established in Framework 30 would go into place on April 1. Full-time vessels would receive 18,000 lb (8,165 kg) of NLS-W allocation and part-time vessels would receive 7,200 lb (3,266 kg) of NLS-W allocation. Because of this discrepancy, this action would set payback measures intended to disincentivize vessels from fishing in NLS-W using 2020 default allocations.

If Framework 32 implementation is delayed, and a vessel fishes any of its fishing year 2020 default NLS-W access area allocation established through Framework 30, that vessel would lose its CAII allocation established through Framework 32. This does not prohibit vessels from fishing the remainder of their fishing year 2019 NLS-W allocation during the first 60 days of fishing year 2020. If Framework 32 is delayed, NMFS will notify all limited access permit holders of these payback measures and other fishing year 2020 default allocations.

LAGC Measures

1. ACL and IFQ Allocation for LAGC Vessels with IFQ Permits. For LAGC vessels with IFQ permits, this action would implement a 2,219-mt ACL for 2020 and a 1,774-mt default ACL for 2021 (see Table 1). These sub-ACLs have no associated regulatory or management requirements, but provide a ceiling on overall landings by the LAGC IFQ fleets. If the fleet were to reach this ceiling, any overages would be deducted from the following year's sub-ACL. Framework 28 (82 FR 15155; March 27, 2017) changed the way the LAGC IFQ allocations are set from a direct percentage of the ACL to a percentage of the APL. The purpose of this change was to help ensure that the allocation of potential catch between the fleets is more consistent with the concept of spatial management by allocating catch to the LAGC IFQ fleet based on harvestable scallops instead of total biomass. Since Framework 28, the LAGC IFQ allocation has been equal to 5.5 percent of the projected landings (5 percent for LAGC IFQ vessels and 0.5 percent for LAGC IFQ vessels that also have a limited access scallop permit). The annual allocation to the LAGC IFQ-only fleet for fishing years 2020 and 2021 based on APL would be 1,119 mt for 2020 and 839 mt for 2021 (see Table 1). Each vessel's IFQ would be calculated from these allocations based on APL.

If NMFS implements these Framework 32 measures after the April 1 start of the 2020 fishing year, the default 2020 IFQ allocations would go into place automatically on April 1, 2020. Because this action would implement IFQ allocations greater than the default allocations, NMFS will notify IFQ permit holders of both default 2020 and Framework 32 IFQ allocations so that vessel owners know what mid-year adjustments would occur should Framework 32 be approved.

2. ACL and IFQ Allocation for Limited Access Scallop Vessels with IFQ Permits. For limited access scallop vessels with IFQ permits, this action would implement a 222-mt ACL for 2020 and a default 177-mt ACL for 2021 (see Table 1). These sub-ACLs have no associated regulatory or management requirements, but provide a ceiling on overall landings by this fleet. If the fleet were to reach this ceiling, any overages would be deducted from the following year's sub-ACL. The annual allocation to limited access vessels with IFQ permits would be 112 mt for 2020 and 84 mt for 2021 (see Table 1). Each vessel's IFQ would be calculated from these allocations based on APL.

3. LAGC IFQ Trip Allocations for Scallop Access Areas. Framework 32 would allocate LAGC IFQ vessels a fleet-wide number of trips in CAI, NLS-N, NLS-S-D, and MAAA for fishing year 2020 and default trips in the MAAA for fishing year 2021 (see Table 11). The scallop catch associated with the total number of trips for all areas combined (2,855 trips) for fishing year 2020 is equivalent to the 5.5 percent of total projected catch from access areas.

4. Northern Gulf of Maine (NGOM) Total Allowable Catch (TAC). This action proposes a 350,000-lb (158,757-kg) NGOM TAC for fishing year 2020 and a 265,000-lb (120,202-kg) default NGOM TAC for fishing year 2021. The final rule for NGOM portions of the Framework 29 (83 FR 12857; March 26, 2019) developed a methodology for splitting the NGOM TAC between the LAGC and the limited access fleets. Framework 32 would continue splitting the TAC using this methodology. The limited access portion of the TAC may only be fished by vessels participating in the RSA program that are participating in a project that has been allocated NGOM RSA allocation. The LAGC portion of the TAC may be fished by NGOM and LAGC IFQ vessels on trips with a 200-lb (90.7-kg) possession limit until the TAC has been harvested. Table 12 describes the division of the TAC for the 2020 and 2021 (default) fishing years.

During the 2018 fishing year the LAGC fleet exceeded its portion of the NGOM TAC by 3,718-lb (1,686-kg). This triggers a pound-for-pound deduction to the LAGC portion of the NGOM TAC to account for the overage. Because the final catch accounting data for the 2018 fishing year was not available in time to implement this deduction in the 2019 fishing year, the LAGC portion of the NGOM TAC for the 2020 fishing year would be reduced by 3,718 lb (1,686 kg) to account for the overage. The resulting LAGC NGOM TAC would be 206,282 lb (93,567 kg) and the total 2020 NGOM TAC would be 346,282 lb (157,071 kg).

5. Scallop Incidental Catch Target TAC. This action proposes a 50,000-lb (22,680-kg) scallop incidental catch target TAC for fishing years 2020 and 2021 to account for mortality from vessels that catch scallops while fishing for other species and ensure that F targets are not exceeded. The Council and NMFS may adjust this target TAC in a future action if vessels catch more scallops under the incidental target TAC than predicted.

RSA Harvest Restrictions

This action proposes that vessels participating in RSA projects would be able to harvest RSA compensation from the MAAA and the open area. All vessels would be prohibited from harvesting RSA compensation pounds in all other access areas. Vessels would be prohibited from fishing for RSA compensation in the NGOM unless the vessel is fishing an RSA compensation trip using NGOM RSA allocation that was awarded to an RSA project. Finally, Framework 32 would prohibit the harvest of RSA from any access areas under default 2021 measures. At the start of 2021, RSA compensation could only be harvested from open areas. The Council would re-evaluate this default prohibition measure in the action that would set final 2021 specifications.

Regulatory Corrections Under Regional Administrator Authority

This proposed rule includes eight revisions to address regulatory text that is unnecessary, outdated, or unclear. These revisions are consistent with section 305(d) of the Magnuson-Stevens Act, which provides authority to the Secretary of Commerce to promulgate regulations necessary to ensure that amendments to an FMP are carried out in accordance with the FMP and the Magnuson-Stevens Act. The first revision, at § 648.4(a)(2)(ii)(G)(1)(ii), would correct a typo referencing NGOM permits. The second revision, at § 648.10(f)(4)(ii), would clarify that vessels only need to send in a daily catch report through their vessel monitoring system (VMS) on trips greater than 24 hours. NMFS no longer requires this report on trips less than 24 hours because all of the information provided can be determined from the required pre-landing report. The third revision at § 648.14(i)(1)(iii)(A)(4) would clarify that all NGOM vessels are prohibited from possessing scallops in Federal waters of the NGOM management area when declared into the state waters fishery exemption program. The fourth revision would remove paragraph § 648.14(i)(3)(i)(B) because possession limits for all LAGC vessels are clearly articulated in § 648.14(i)(1)(iii). The fifth revision at § 648.14(i)(4)(i)(G) would clarify that LAGC IFQ vessels can possess more than 40 lb (18.1 kg) of shucked scallops on a properly declared NE multispecies, surfclam, or ocean quahog trip (or other fishery requiring a VMS declaration) while not fishing in a scallop access area. The sixth revision, at § 648.52(b), would clarify that LAGC vessels declared into the NGOM scallop fishery may not possess or land, per trip, more than 200 lb (90.7 kg) of shucked scallops, or possess more than 25 bu (8.81 hL) of in-shell scallops shoreward of the VMS Demarcation Line shoreward possession limit for vessels declared into the NGOM fishery. The seventh revision at § 648.52(c), would clarify that LAGC IFQ vessels on a properly declared Northeast multispecies, surfclam, or ocean quahog trip or other fishery requiring a VMS declaration can possess more than 40 lb (18.1 kg) of shucked scallops, or possess more than 5 bu (1.76 hL) of in-shell scallops shoreward of the VMS Demarcation Line. The final revision, at § 648.53(h)(5), would clarify that LAGC IFQ permit owners can temporarily transfer IFQ more than once (i.e., re-transfer) in a given fishing year.

Classification

Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the Assistant Administrator has determined that this proposed rule is consistent with the Atlantic Sea Scallop FMP, other provisions of the Magnuson-Stevens Act, and other applicable law, subject to further consideration after public comment.

This proposed rule has been determined to be not significant for purposes of Executive Order 12866.

An IRFA has been prepared for Framework 32, as required by section 603 of the Regulatory Flexibility Act (RFA). The IRFA describes the economic impact this proposed rule, if adopted, would have on small entities. The IRFA consists of Framework 32 analyses, the draft IRFA, and the preamble to this proposed rule.

Description of the Reasons Why Action by the Agency Is Being Considered and Statement of the Objectives of, and Legal Basis for, This Proposed Rule

This action proposes the management measures and specifications for the Atlantic sea scallop fishery for 2020, with 2021 default measures. A description of the action, why it is being considered, and the legal basis for this action are contained in the Council's Framework 32 document and the preamble of this proposed rule, and are not repeated here.

Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements of the Proposed Rule

This action contains no new collection-of-information, reporting, or recordkeeping requirements. There would be economic impacts to small entities associated with this proposed rule. Those impacts are described in detail in the draft of Framework 32, specifically, in the IRFA (Section 7.1.2) and in the Economic and Social Impacts section (Section 6.6).

Federal Rules Which May Duplicate, Overlap or Conflict With This Proposed Rule

The proposed regulations do not create overlapping regulations with any state regulations or other Federal laws.

Description and Estimate of Number of Small Entities to Which the Rule Would Apply

The proposed regulations would affect all vessels with limited access and LAGC scallop permits, but there is no differential effect based on whether the affected entities are small or large. As explained in the section below, the proposed regulations are expected to result in lower profits for small entities compared to fishing year 2019. Framework 32 provides extensive information on the number and size of vessels and small businesses that would be affected by the proposed regulations, by port and state (see ADDRESSES). Fishing year 2018 data were used for this analysis because these data are the most recent complete data set for a fishing year. There were 313 vessels that held full-time limited access permits in 2018, including 249 dredge, 54 small-dredge, and 12 scallop trawl permits. In the same year, there were also 32 part-time limited access permits in the scallop fishery. No vessels were issued occasional limited access permits in 2018. NMFS issued 245 LAGC IFQ permits and 102 LAGC NGOM permits in 2018. About 127 of the IFQ vessels and 41 NGOM vessels actively fished for scallops in 2018. The remaining IFQ permits likely leased out scallop IFQ allocations with their permits in Confirmation of Permit History. Section 6.6 of Framework 32 provides extensive information on the number and size of vessels that would be affected by the proposed regulations, their home and principal state, dependency on the scallop fishery, and revenues and profits (see ADDRESSES).

For RFA purposes, NMFS defines a small business in a shellfish fishery as a firm that is independently owned and operated with receipts of less than $11 million annually (see 50 CFR 200.2). Individually permitted vessels may hold permits for several fisheries, harvesting species of fish that are regulated by several different FMPs, even beyond those impacted by this proposed rule. Furthermore, multiple permitted vessels and/or permits may be owned by entities with various personal and business affiliations. For the purposes of this analysis, ownership entities are defined as those entities with common ownership as listed on the permit application. Only permits with identical ownership are categorized as an ownership entity. For example, if five permits have the same seven persons listed as co-owners on their permit applications, those seven persons would form one ownership entity that holds those five permits. If two of those seven owners also co-own additional vessels, that ownership arrangement between the two owners for the additional vessels would be considered a separate ownership entity for the purpose of this analysis.

On June 1 of each year, ownership entities are identified based on a list of all permits for the most recent complete calendar year. The current ownership dataset is based on the calendar year 2018 permits and contains average gross sales associated with those permits for calendar years 2016 through 2018. Matching the potentially impacted 2018 fishing year permits described above (limited access and LAGC IFQ) to calendar year 2018 ownership data results in 167 distinct ownership entities for the limited access fleet and 95 distinct ownership entities for the LAGC IFQ fleet. Of these, 158 of the limited access distinct ownership entities and 95 LAGC IFQ entities are categorized as small entities. The remaining nine of the limited access and none of the LAGC IFQ entities are categorized as large entities. There were 41 distinct small business entities with NGOM permits in 2018 permits.

Description of Significant Alternatives to the Proposed Action Which Accomplish the Stated Objectives of Applicable Statutes and Which Minimize Any Significant Economic Impact on Small Entities

The Council's preferred alternative (Alternative 3, Sub-option 2) would allocate each full-time limited access vessel 24 open area DAS and 90,000 lb (40.8 mt) of access area allocation. This is estimated to result in about 46.6 million lb (20,865 mt) of landings for the limited access fishery after the set asides are removed (Table 14), and about 51.6 million lb (23,405 mt) of landings including set-asides and LAGC sub-ACL (Table 13). The allocation for LAGC IFQ vessels with IFQ permits only would be about 2.5 million pounds (1,134 mt) and, including those limited access vessels with IFQ permits, would be about 2.7 million lb (1,225 mt) (Table 15). This alternative is expected to have negative impacts on the net revenues and profits of small entities regulated by this action in 2020 compared to the status quo scenario. The decline in revenue per entity between fishing year 2019 levels and the proposed fishing year 2020 levels (Table 13) is as a result of declining allocations between these two fishing years, i.e., lower projected landings by about 10.1 million lb (4,581 mt) in the Framework 32 preferred alternative compared to fishing year 2019 allocations. As described in the Economic Impacts Section 6.6.3 of Framework 32, and summarized in Table 14, fleetwide net revenue for limited access vessels would be lower for the preferred alternative by about $64 million (12.7 percent) compared to the fleetwide net revenue in fishing year 2019.

Under the preferred alternative, allocation for the LAGC IFQ fishery, including the limited access vessels with IFQ permits, will be about 17.8 percent lower than the allocation under the status quo. In terms of net revenue, this difference is expected to be of similar magnitude and negative for the preferred alternative relative to fishing year 2019 levels. Therefore, preferred alternative will have negative economic impacts on the LAGC IFQ fishery compared to fishing year 2019 levels (Table 15).

Under the preferred alternative for the NGOM measures (Alternative 2, Sub-Option 2), the TAC for the NGOM would be set at 350,000 lb (158,757 kg) in 2020. The first 70,000 lb (31,751 kg) would be allocated to the LAGC component of the fishery. The remaining poundage would be split 50/50 between the LAGC and the limited access components of the fishery. For the 2020 fishing year, the overall shares for LAGC vessels would be 210,000 lb (95,254 kg), and for limited access vessels the overall shares would be 140,000 lb (63,503 kg) (Table 12). The limited access share of the NGOM TAC could be utilized only for RSA compensation fishing.

The NGOM TAC for the preferred alternative would be higher than the TAC for the No Action alternative, Alternative 1, (overall TAC of 170,000 lbs (77,111 kg)). As a result, the net revenue for the LAGC NGOM fishery would be expected to increase by 75 percent under the preferred alternative, compared to the No Action alternative, resulting in positive impacts on the profits of NGOM LAGC entities.

Economic impacts of the Framework 32 preferred alternatives, including fishery specifications, access area trip allocations for the limited access and LAGC IFQ fisheries, NGOM measures, and other measures to reduce fishery impacts are expected to be negative for the scallop vessels and small business entities compared to the fishing year 2019 measures. Alternative 2, Sub-Option 2 is the only other alternative that would meet the objectives of Framework 32. Alternative 2, Sub-Option 2 would be very similar to the preferred alternative (Alternative 3, Sub-Option 2) except it would not close the Closed Area II-Southwest and Extension Area to scallop fishing. Alternative 2, Sub-Option 2 would have the highest landings and net revenues in 2020 (see Table 13, Table 14, and Table 15). Although Alternative 2, Sub-Option 2 net revenues would be slightly higher than net revenues for the preferred alternative, the preferred alternative would close the Closed Area II-Southwest and Extension Area to scallop fishing to protect small scallops for future harvest and to reduce flatfish bycatch. We have determined that the preferred alternative is optimal because it would minimize risks associated with stock biomass uncertainties while protecting small scallops and reducing flatfish bycatch in the Closed Area II-Southwest and Extension Area.

List of Subjects 50 CFR Part 648

• Fisheries
• Fishing
• Recordkeeping and reporting requirements

For the reasons set out in the preamble, 50 CFR part 648 is proposed to be amended as follows:

PART 648—FISHERIES OF THE NORTHEAST UNITED STATES

1. The authority citation for part 648 continues to read as follows:

Authority: 16 U.S.C. 1801 et seq.

Subpart A—General Provisions

2. In § 648.4, revise paragraph (a)(2)(ii)(G)( 1)(ii) to read as follows:

3. In § 648.10, revise paragraph (f)(4)(i) to read as follows:

4. In § 648.14:

a. Add paragraphs (i)(1)(iii)(A)( 4) and (5);

b. Remove paragraph (i)(1)(iv)(E) and remove and reserve paragraph (i)(3)(i)(B); and

c. Revise paragraph (i)(4)(i)(G).

The revisions and deletions should read as follows:

Subpart D—Management Measures for the Atlantic Sea Scallop Fishery

5. In § 648.51:

a. Add paragraph (c)(1);

b. Remove the semicolon at the end of paragraph (c)(2) and add a period in its place; and

c. Add paragraph (e)(3)(iv).

The additions read as follows:

6. In § 648.52, revise paragraphs (b) and (c) to read as follows:

7. In § 648.53, revise paragraphs (a)(8), (b)(3), and (h)(5)(i) to read as follows:

8. In § 648.59, revise paragraphs (b)(3)(i)(B), (b)(3)(ii), (c), (e), and (g)(3)(v) to read as follows:

9. Revise § 648.60 to read as follows:

10. In § 648.62, revise paragraph (b)(1) and add paragraph (e) to read as follows: