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The Pulse

| 1 minute read

From Type B to Type A Natural Resource Damages

The U.S. Department of the Interior has (DOI) finalized revisions to the Type A procedures under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) natural resource damage assessment and restoration regulations, effective August 12, 2026. These are the procedures used by federal, state, and tribal trustees to calculate the monetary cost of restoring, replacing, or acquiring the equivalent of natural resources injured by the release of hazardous substances. 

The revised Type A rule modernizes a process that had been constrained by older models and limited settings, and it now allows trustees to use a simplified assessment pathway for all natural resources in any environment where the rule’s eligibility criteria are met.

Type A assessments may be used where at least one potentially responsible party voluntarily agrees, a tolling agreement of at least one year is in place, trustees determine that appropriate restoration-based methods are available, and expected damages are under $5 million, excluding reasonable assessment costs, unless all parties agree to a higher amount.

Why does this matter? DOI expects the revised process to reduce reliance on more expensive, time-consuming Type B assessments and support faster, cost-effective settlements and earlier restoration.

For environmental, energy, mining, transportation, and real estate practitioners, the rule deserves attention beyond active Natural Resource Damages (NRD) matters. It may affect how parties evaluate liability exposure, reserve for potential claims, frame cooperation with trustees, negotiate tolling and settlement terms, and diligence contaminated assets, legacy operations, redevelopment sites, and transactions involving natural resources, groundwater, waterways, public lands, or Tribal trustee interests.

NRD risk may become more assessable earlier. Companies and counsel should consider whether pending matters, portfolios, or transactions could benefit from, or be affected by, this expanded Type A pathway.

[M]ore Type A damage assessments will result in streamlined, quicker, and more cost-effective settlements, allowing for restoration to happen sooner.

Tags

natural resource damages, cercla, environmental liability