When an oil spill or hazardous substance release impacts the environment, cleaning up the contamination is only part of the response. It is also important to understand how natural resources were affected and what it will take to restore them.
What is NRDA?
Natural Resource Damage Assessment (NRDA) is a legal process used to evaluate injuries to natural resources following an oil spill or hazardous substance release. The assessment helps determine the extent of environmental damage, identifies restoration needs, and guides projects designed to return affected ecosystems to their pre-incident condition.
How Does the NRDA Process Work?
Established under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and other environmental laws, the NRDA process is carried out by designated natural resource trustees. These trustees may include federal agencies such as the National Oceanic and Atmospheric Administration (NOAA), state governments, and Tribal Nations.
The process generally includes three key steps:
- Pre-assessment: Determine whether natural resources have been injured and whether an assessment is warranted.
- Damage assessment: Evaluate the extent of the environmental impacts through field studies, scientific analysis, and other investigations.
- Restoration planning: Develop and implement projects designed to restore or replace injured natural resources.
NRDA in Action
NRDA is an ongoing process used across the United States whenever pollution damages natural resources. In 2025, NOAA and its partners announced the recovery of more than $40 million from responsible parties to fund habitat restoration projects in New Jersey, Texas, and Washington following pollution incidents.
Through the NRDA process, scientists evaluate impacts to fish, wildlife, wetlands, and other natural resources before restoration projects are developed. Those efforts may include restoring habitats, improving water quality, enhancing recreational access, and supporting long-term ecosystem recovery.
These projects demonstrate how NRDA helps move beyond environmental cleanup by ensuring damaged natural resources are restored for future generations.
Why It Matters
For vessel owners and operators, an oil spill can lead to obligations that extend beyond emergency response and cleanup. Environmental damage assessments and restoration efforts may also become part of the overall response. Understanding the NRDA process helps illustrate why comprehensive marine pollution coverage is an important component of managing environmental risk.
To learn more about protecting your client’s operation from pollution-related exposures, contact Falvey today.
Source: Damage Assessment, Remediation, and Restoration Program
