The Aquatic Farm Act of 1988 established the regulatory structure and capabilities for the state to oversee and support economic prospects for shellfish farming in Alaska. Alaska's shellfish farmers benefit from a supportive regulatory environment, technical assistance, and industry support from state agencies, the University of Alaska, and other industry stakeholders.

According to the seashore configuration, local rules for permitting and traditions, farmers have to choose both the farm site and the farming technique that is appropriate for the site.

You need multiple permits to start an aquatic farm in Alaska. An operation permit from the Alaska Department of Fish and Game (ADF&G) and Alaska Department of Environmental Conservation (ADEC) dual-permitting process is required to engage in aquatic activities. You can apply for an operation permit on the ADF&G website annually between January 1 and April 30. Additional permits from ADF&G are required to transport species between nurseries and farms. If your site is located on state tidelands or submerged lands, you must have a lease through the Alaska Department of Natural Resources (ADNR). Additionally, you need a permit from the U.S. Army Corps of Engineers (USACE) to place your farm equipment in the water. Operators can also create sub-accounts for required actions on their behalf. Since its implementation, this online service has been a significant time saver for ADF&G. It eliminates data entry, streamlines the permitting processes and supports the operator by providing access to all their permit information.

The regulatory environment in the state allows for flexibility in addressing any conflicts that may arise, enabling innovative solutions to maximize the utilization of Alaska's extensive coastline for sustainable mariculture practices.

Our Alaskan regulatory environment and leasing environment here are very favorable, and if you can't get through that, you're going to fail anyway.

Jeff Hetrick, director Alutiiq Pride Marine Institute

Unlike land-based farms, sea farms operate in state waters (i.e. out to three miles from shore) and on beaches that are collectively owned by the state's citizens. Choosing the right farm site not only ensures compliance with regulations aimed at protecting the environment but also plays a key role in minimizing controversies during the application process.

In June 2023, NOAA Fisheries, in collaboration with the state of Alaska, announced a plan to designate Aquaculture Opportunity Areas (AOAs) in state waters. These AOAs are selected regions suitable for commercial aquaculture, based on environmental, social, and economic criteria. The AOAs will be determined through analysis, Indigenous knowledge, and public input, focusing on invertebrate and seaweed aquaculture to guide new farmers and managers in making informed decisions.

The AOA process aims to streamline permitting through robust ecological analysis, ensure environmental sustainability, increase investor confidence, and ultimately foster responsible industry growth.

State regulations limit the amount of surface area that may be leased to aquatic farms to a third or less of a bay, bight, or cove. Therefore, most sites are relatively small (on average ~13 acres) compared to the waterbodies they are located in. Consequently, it is assumed that there is no immediate concern regarding resource shortage or outcompeting other phytoplankton-fed native species.