The New England Fishery Management Council will not prioritize scallop permit-stacking in 2027, potentially leaving NOAA to pursue the controversial permitting change through a federal process.

The council voted overwhelmingly last week to tell federal officials that it “lacks the operational capacity” to take up permit-stacking next year, according to reporting from The New Bedford Light.

The decision follows federal officials' July request that the council consider six fisheries management actions stemming from President Trump’s 2025 executive order, “Restoring American Seafood Competitiveness.” The order called for reducing regulatory burdens and strengthening U.S. seafood competitiveness.

Of those requests, NOAA would develop the regulatory changes rather than the council, while still providing opportunities for council and public input. Scallop permits have been tied to individual vessels for decades. Permit-stacking would allow owners to place more than one permit on a vessel, potentially allowing that vessel to make additional trips while owners retire older boats from their fleets.

The proposal, however, has divided members of the scallop industry.

Supporters say stacking could help vessel owners contend with rising maintenance costs while fishing fewer days. Tony Alvernaz, co-owner of six New Bedford vessels, told the council that an engine overhaul on one of his boats costs $160,000.

“You equate that to the sea days I’ve been allocated this year for that boat, I’ll be lucky to make payments on it,” Alvernaz said, according to The Light. He argued that operating a business with the 36 days allocated to the scallop fleet this year has become increasingly difficult.

Opponents, however, worry that permit stacking could accelerate fleet consolidation and reduce employment for crews and shoreside businesses. NOAA has also identified potential concerns, including foreign ownership, job losses, and impacts to working waterfronts.

Tyler Miranda, a captain running three scallop boats out of New Bedford, told The Light that he views stacking primarily as a financial measure rather than one tied to management of the resource. Miranda said the policy could encourage owners to sell aging vessels, reducing the number of boats operating from fishing ports and, in turn, the amount of work available to shoreside businesses.

“There will be less work for them,” Miranda said. “That’s an instant impact… less boats means less work for those people.”

The council has considered a similar concept before. In 2022, it rejected a proposal to allow scallop permit leasing, prompting some council members to question why the issue was being revisited.

“I’m just a little frustrated that we’re being forced to continue to revisit decisions that we’ve already made,” council member Geoffrey Smith said during last week’s meeting.

“The secretary is able to step in if the council fails to act, but we did act on this issue when we considered permit leasing a few years ago and voted it down, although I voted in favor,” council member Togue Brawn said. “While I personally support stacking, I think this directive sets a dangerous precedent. The councils were established by the Magnuson Act to represent all segments of the industry. They move slowly but deliberately, with many opportunities for public input. The administration should not be able to overrule them. The same people who welcome this action today may regret it if their opponents gain the ear of a future administration.”

Mitch MacDonald, a NOAA attorney, told council members that the U.S. Secretary of Commerce has authority under federal law to implement a secretarial amendment. Capacity was also a concern. The council already has nearly 60 priorities on its draft list for 2027, according to a staff presentation cited by The Light.

“This is a question of how we want to spend our staff hours,” council member Megan Ware said. “There are some really big ticket items ahead of us… So how would you weigh [permit-stacking] against those other priorities?”

Some industry representatives said they would prefer NOAA take the lead.

Sam Martin, chief operating officer for Atlantic Capes Fisheries, told regulators that industry members have previously tried unsuccessfully to move the permitting change through the council. “I really don’t want the council to take it up,” Martin said. “I don’t think the council has time to take it up, and I think the process will be served well with [NOAA].”

Brent Fulcher, a member of the council’s Scallop Advisory Panel, similarly said the issue has become too contentious to advance through the council process.

If the Commerce secretary moves forward with a secretarial action, NOAA is already positioned to begin scoping, Mike Pentony, administrator for the Greater Atlantic Regional Fisheries Office, told the council.

Council Executive Director Cate O’Keefe said discussions with NOAA leadership have led her to believe a federal stacking proposal could be narrowly tailored, potentially allowing no more than two permits to be stacked on a single vessel.

If NOAA takes over the process, Pentony said public discussions could begin soon, potentially before the council’s December meeting. The agency would be working toward an early April 2027 deadline to submit specifications for the permit-stacking proposal.